Document:

<PAGE>

                                                                     Exhibit 4.4

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                       AMERICAN INTERNATIONAL GROUP, INC.

                                       TO

                              THE BANK OF NEW YORK

                                                    TRUSTEE

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

                               WARRANT INDENTURE

                               DATED AS OF ______

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

================================================================================

<PAGE>

                       AMERICAN INTERNATIONAL GROUP, INC.
    CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH 318,
                 INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

<TABLE>
<CAPTION>
TRUST INDENTURE
  ACT SECTION                                                              INDENTURE SECTION
<S>                                                                        <C>
Section 310(a)(1)......................................................      609
      (a)(2)...........................................................      609
      (a)(3)...........................................................      Not Applicable
      (a)(4)...........................................................      Not Applicable
      (b)..............................................................      608
                                                                             610
Section 311(a).........................................................      613
      (b)..............................................................      613
Section 312(a).........................................................      701
                                                                             702
      (b)..............................................................      702
      (c)..............................................................      702
Section 313(a).........................................................      703
      (b)..............................................................      703
      (c)..............................................................      703
      (d)..............................................................      703
Section 314(a).........................................................      704
      (a)(4)...........................................................      101
                                                                             1004
      (b)..............................................................      Not Applicable
      (c)(1)...........................................................      102
      (c)(2)...........................................................      102
      (c)(3)...........................................................      Not Applicable
      (d)..............................................................      Not Applicable
      (e)..............................................................      102
Section 315(a).........................................................      601
      (b)..............................................................      602
      (c)..............................................................      601
      (d)..............................................................      601
      (e)..............................................................      513
Section 316(a).........................................................      101
      (a)(1)(A) .......................................................      511
      (a)(1)(B)                                                              512
      (a)(2)...........................................................      Not Applicable
      (b)..............................................................      507
      (c)..............................................................      104
Section 317(a)(1)......................................................      502
      (a)(2)...........................................................      503
      (b)..............................................................      1003
Section 318(a).........................................................      107
</TABLE>

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Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                               <C>
PARTIES........................................................................................................    1
RECITALS OF THE COMPANY........................................................................................    1

                                                  ARTICLE ONE

                            DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101.    Definitions....................................................................................    1
Section 102.    Compliance Certificates and Opinions...........................................................    6
Section 103.    Form of Documents Delivered to Trustee.........................................................    6
Section 104.    Acts of Holders; Record Dates..................................................................    7
Section 105.    Notices, Etc., to Trustee and Company..........................................................    8
Section 106.    Notice to Holders; Waiver......................................................................    9
Section 107.    Conflict with Trust Indenture Act..............................................................    9
Section 108.    Effect of Headings and Table of Contents.......................................................    9
Section 109.    Successors and Assigns.........................................................................    9
Section 110.    Separability Clause............................................................................    9
Section 111.    Benefits of Indenture..........................................................................    9
Section 112.    Characterization of Warrants...................................................................   10
Section 113.    Governing Law..................................................................................   10
Section 114.    Legal Holidays.................................................................................   10

                                                  ARTICLE TWO

                                                SECURITY FORMS

Section 201.    Forms Generally................................................................................   10
Section 202.    Form of Face of Call Warrant...................................................................   11
Section 203.    Form of Reverse of Call Warrant................................................................   12
Section 204.    Form of Face of Put Warrant....................................................................   17
Section 205.    Form of Reverse of Put Warrant.................................................................   19
Section 206.    Form of Legend for Global Securities...........................................................   23
Section 207.    Form of Trustee's Certificate of Authentication................................................   23

                                                 ARTICLE THREE

                                                THE SECURITIES

Section 301.    Amount Unlimited; Issuable in Series...........................................................   24
Section 302.    Denominations..................................................................................   27
Section 303.    Execution, Authentication, Delivery and Dating.................................................   27
Section 304.    Temporary Securities...........................................................................   28
Section 305.    Registration, Registration of Transfer and Exchange............................................   28
Section 306.    Mutilated, Destroyed, Lost and Stolen Securities...............................................   30
Section 307.    Persons Deemed Owners..........................................................................   31
Section 308.    Cancellation...................................................................................   31
Section 309.    Calculation Agent..............................................................................   31
Section 310.    CUSIP Numbers..................................................................................   31
</TABLE>

                                       i
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<TABLE>
<S>                                                                                                               <C>
                                                 ARTICLE FOUR

                                          SATISFACTION AND DISCHARGE

Section 401.    Satisfaction and Discharge of Indenture........................................................   32
Section 402.    Application of Trust Money and Warrant Property................................................   33

                                                 ARTICLE FIVE

                                                   REMEDIES

Section 501.    Events of Default..............................................................................   33
Section 502.    Collection of Amounts Due and Suits for Enforcement by Trustee.................................   34
Section 503.    Trustee May File Proofs of Claim...............................................................   34
Section 504.    Trustee May Enforce Claims Without Possession of Securities....................................   35
Section 505.    Application of Money Collected.................................................................   35
Section 506.    Limitation on Suits............................................................................   35
Section 507.    Unconditional Right of Holders to Receive Money or Warrant Property Due with Respect
                to Securities and to Exercise..................................................................   36
Section 508.    Restoration of Rights and Remedies.............................................................   36
Section 509.    Rights and Remedies Cumulative.................................................................   36
Section 510.    Delay or Omission Not Waiver...................................................................   36
Section 511.    Control by Holders.............................................................................   37
Section 512.    Waiver of Past Defaults........................................................................   37
Section 513.    Undertaking for Costs..........................................................................   37
Section 514.    Waiver of Stay or Extension Laws...............................................................   38

                                                  ARTICLE SIX

                                                  THE TRUSTEE

Section 601.    Certain Duties and Responsibilities............................................................   38
Section 602.    Notice of Defaults.............................................................................   38
Section 603.    Certain Rights of Trustee......................................................................   38
Section 604.    Not Responsible for Recitals or Issuance of Securities.........................................   39
Section 605.    May Hold Securities............................................................................   39
Section 606.    Money or Warrant Property Held in Trust........................................................   39
Section 607.    Compensation and Reimbursement.................................................................   40
Section 608.    Conflicting Interests..........................................................................   40
Section 609.    Corporate Trustee Required; Eligibility........................................................   41
Section 610.    Resignation and Removal; Appointment of Successor..............................................   41
Section 611.    Acceptance of Appointment by Successor.........................................................   42
Section 612.    Merger, Conversion, Consolidation or Succession to Business....................................   43
Section 613.    Preferential Collection of Claims Against Company..............................................   43

                                                 ARTICLE SEVEN

                               HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 701.    Company to Furnish Trustee Names and Addresses of Holders......................................   43
Section 702.    Preservation of Information; Communications to Holders.........................................   44
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                               <C>
Section 703.    Reports by Trustee.............................................................................   44
Section 704.    Reports by Company.............................................................................   44

                                                 ARTICLE EIGHT

                             CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 801.    Company May Consolidate, Etc., Only on Certain Terms...........................................   45
Section 802.    Successor Substituted..........................................................................   45

                                                 ARTICLE NINE

                                            SUPPLEMENTAL INDENTURES

Section 901.    Supplemental Indentures Without Consent of Holders.............................................   46
Section 902.    Supplemental Indentures With Consent of Holders................................................   47
Section 903.    Execution of Supplemental Indentures...........................................................   48
Section 904.    Effect of Supplemental Indentures..............................................................   48
Section 905.    Conformity with Trust Indenture Act............................................................   48
Section 906.    Reference in Securities to Supplemental Indentures.............................................   48

                                                  ARTICLE TEN

                                                   COVENANTS

Section 1001.   Payment or Delivery of Money or Warrant Property...............................................   49
Section 1002.   Maintenance of Office or Agency................................................................   49
Section 1003.   Money and Warrant Property for Securities Payments and Deliveries to be Held in Trust..........   49
Section 1004.   Statement by Officers as to Default............................................................   50
Section 1005.   Existence. ....................................................................................   50
Section 1006.   Waiver of Certain Covenants....................................................................   50

                                                ARTICLE ELEVEN

                                           REDEMPTION OF SECURITIES

Section 1101.   Applicability of Article.......................................................................   51
Section 1102.   Election to Redeem; Notice to Trustee..........................................................   51
Section 1103.   Selection by Trustee of Securities to Be Redeemed..............................................   51
Section 1104.   Notice of Redemption...........................................................................   52
Section 1105.   Deposit of Redemption Price....................................................................   53
Section 1106.   Securities Payable on Redemption Date..........................................................   53
Section 1107.   Securities Redeemed in Part....................................................................   53
</TABLE>

                                      iii
<PAGE>

      WARRANT INDENTURE, dated as of ________________, between American
International Group, Inc., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the "Company"), having its
principal office at 70 Pine Street, New York, New York 10270, and The Bank of
New York, a New York banking corporation, as Trustee (herein called the
"Trustee").

                             RECITALS OF THE COMPANY

      The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its Universal
Warrants, as hereinafter defined (herein sometimes called the "Securities"), to
be issued in one or more series as in this Indenture provided.

      All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

      NOW, THEREFORE, THIS INDENTURE WITNESSETH:

      For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the benefit of all
Holders of the Securities, as follows:

                                  ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

Section 101. Definitions.

      For all purposes of this Indenture, except as otherwise expressly provided
or unless the context otherwise requires:

            (1)   the terms defined in this Article have the meanings assigned
      to them in this Article and include the plural as well as the singular;

            (2)   all other terms used herein which are defined in the Trust
      Indenture Act, either directly or by reference therein, have the meanings
      assigned to them therein;

            (3)   all accounting terms not otherwise defined herein have the
      meanings assigned to them in accordance with generally accepted accounting
      principles and, except as otherwise herein expressly provided, the term
      "generally accepted accounting principles" with respect to any computation
      required or permitted hereunder shall mean such accounting principles as
      are generally accepted at the date of such computation;

            (4)   unless the context otherwise requires, any reference to an
      "Article" or a "Section" refers to an Article or a Section, as the case
      may be, of this Indenture;

            (5)   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; and

            (6)   when used with respect to any Security, the words "exercise"
      and "exercised" are intended to refer to the right of the Holder or the
      Company to exercise such Security and to receive in exchange money or
      Warrant Property in accordance with

                                        1
<PAGE>

      such terms as may hereafter be specified for such Security as contemplated
      by Section 301, and these words are not intended to refer to any right of
      the Holder or the Company to exchange such Security for other Securities
      of the same series and like tenor pursuant to Section 304, 305, 306, 906,
      1107 or another similar provision of this Indenture, unless the context
      otherwise requires; and references herein to the terms of any Security
      that may be exercised mean such terms as may be specified for such
      Security as contemplated in Section 301.

      "Act", when used with respect to any Holder, has the meaning specified in
Section 104.

      "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

      "Applicable Procedures" of a Depositary means, with respect to any matter
at any time, the policies and procedures of such Depositary, if any, that are
applicable to such matter at such time.

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

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

      "Business Day" when used with respect to any Place of Payment, means,
unless otherwise specified as contemplated by Section 301, each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions
in that Place of Payment are authorized or obligated by law or executive order
to close.

      "Calculation Agent" has the meaning specified in Section 309.

      "Call Warrants" has the meaning specified in Section 301(5).

      "Commission" means the Securities and Exchange Commission, from time to
time constituted, created under the Exchange Act, or, if at any time after the
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

      "Company" means the Person named as the "Company" in the first paragraph
of this instrument until a successor Person shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Company" shall mean
such successor Person.

      "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman, one of its Vice Chairman, its
President or one of its Vice Presidents (or any Person designated by one of them
in writing as authorized to execute and deliver Company Requests and Company
Orders) and by its Treasurer, one of its Assistant Treasurers, its Secretary or
one of its Assistant Secretaries (or any Person designated by one of them in
writing as authorized to execute and deliver Company Requests and Company
Orders), and delivered to the Trustee.

                                        2
<PAGE>

      "Corporate Trust Office" means the principal office of the Trustee in New
York, New York at which at any particular time its corporate trust business
shall be administered.

      "corporation" means a corporation, association, company, limited liability
company, joint stock company or business trust.

      "Depositary" means, with respect to Securities of any series issuable in
whole or in part in the form of one or more Global Securities, any Person that
is designated to act as Depositary for such Securities as contemplated by
Section 301.

      "Event of Default" has the meaning specified in Section 501.

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

      "Expiration Date", when used with respect to Securities of any series,
means the date on which the right to exercise the Securities of such series
shall expire.

      "Final Date" has the meaning specified in Section 104.

      "Global Security" means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 206 (or such
legend as may be specified as contemplated by Section 301 for such Securities).

      "Holder" means a Person in whose name a Security is registered in the
Security Register.

      "Indenture" means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "Indenture" shall also include the terms of particular
series of Securities established as contemplated by Section 301.

      "Notice of Default" means a written notice of the kind specified in
Section 501(2).

      "Officers' Certificate" means a certificate signed by the Chairman, a Vice
Chairman the President, or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee. One of the officers signing an Officers' Certificate
given pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.

      "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company, and who shall be acceptable to the Trustee.

      "Outstanding", when used with respect to Securities, means, as of the date
of determination, all Securities theretofore authenticated and delivered under
this Indenture, except:

            (1)   Securities theretofore cancelled by the Trustee or delivered
      to the Trustee for cancellation;

                                        3
<PAGE>

            (2)   Securities for whose payment, redemption, or settlement money
      or Warrant Property in the necessary amount has been theretofore deposited
      with the Trustee or any Paying Agent (other than the Company) in trust or
      set aside and segregated in trust by the Company (if the Company shall act
      as its own Paying Agent) for the Holders of such Securities; provided
      that, if such Securities are to be redeemed, notice of such redemption has
      been duly given pursuant to this Indenture or provision therefor
      satisfactory to the Trustee has been made;

            (3)   Securities which have been paid pursuant to Section 306 or in
      exchange for or in lieu of which other Securities have been authenticated
      and delivered pursuant to this Indenture, other than any such Securities
      in respect of which there shall have been presented to the Trustee proof
      satisfactory to it that such Securities are held by a bona fide purchaser
      in whose hands such Securities are valid obligations of the Company;

            (4)   Securities as to which any money or Warrant Property payable
      or deliverable upon exercise thereof has been paid or delivered (or such
      payment or delivery has been duly provided for), or as to which any other
      particular conditions have been satisfied, in each case as may be provided
      for such Securities as contemplated in Section 301;

provided, however, that in determining whether the Holders of the requisite
number of Outstanding Securities have given, made or taken any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder as
of any date, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent, waiver or other action, only
Securities which a Responsible Officer of the Trustee knows to be so owned shall
be so disregarded. Securities so owned which have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

      "Paying Agent" means any Person authorized by the Company to pay or
deliver any money or Warrant Property payable or deliverable on behalf of the
Company upon exercise, redemption or settlement of such Securities and includes
any warrant agent appointed by the Company with respect to such series.

      "Payment or Settlement Date", when used with respect to any Security,
means the date when any money or Warrant Property with respect to such Security
becomes payable or deliverable upon exercise, redemption or settlement of such
Security in accordance with its terms.

      "Person" means any individual, corporation, partnership, joint venture,
unincorporated organization or government or any agency or political subdivision
thereof.

      "Place of Payment", when used with respect to the Securities of any series
and subject to Section 1002, means the place or places where any money or
Warrant Property payable or deliverable upon exercise or redemption of such
Securities is payable or deliverable as specified, as contemplated by Section
301.

      "Put Warrants" has the meaning specified in Section 301(5).

                                       4
<PAGE>

      "Redemption Date", when used with respect to any Security to be redeemed,
means the date fixed for such redemption by or pursuant to this Indenture.

      "Redemption Price", when used with respect to any Security to be redeemed,
means the price at which it is to be redeemed pursuant to this Indenture.

      "Responsible Officer", when used with respect to the Trustee, means any
vice president, any assistant vice president, any senior trust officer or
assistant trust officer, any trust officer, or any other officer associated with
the corporate trust department 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 such person's knowledge of and
familiarity with the particular subject.

      "Securities" has the meaning stated in the first recital of this Indenture
and more particularly means any Securities authenticated and delivered under
this Indenture.

      "Security Register" and "Security Registrar" have the respective meanings
specified in Section 305.

      "Subsidiary" means a corporation more than 50% of the outstanding voting
stock of which is owned, directly or indirectly, by the Company or by one or
more other Subsidiaries, or by the Company and one or more other Subsidiaries.
For the purposes of this definition, "voting stock" means stock which ordinarily
has voting power for the election of directors, whether at all times or only so
long as no senior class of stock has such voting power by reason of any
contingency.

      "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

      "Trustee" means the Person named as the "Trustee" in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Trustee" shall mean
or include each Person who is then a Trustee hereunder, and if at any time there
is more than one such Person, "Trustee" as used with respect to the Securities
of any series shall mean the Trustee with respect to Securities of that series.

      "Universal Warrants" means warrants, issued by the Company and
authenticated and delivered under this Indenture, to purchase or sell, or whose
cash value is determined by reference to or is linked to the performance, level
or value of, one or more of the following: (i) securities of one or more
issuers, including the common or preferred stock or other securities of the
Company or debt or equity securities of third parties, (ii) one or more
currencies, (iii) one or more commodities, (iv) any other financial, economic or
other measure or instrument (including the occurrence or non-occurrence of any
event or circumstance) and/or (v) one or more indices or baskets of the items
described in clauses (i), (ii), (iii) and (iv).

      "Vice President", when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title "vice president".

      "Warrant Property", when used with respect to a Security, means the
property described in clauses (i), (ii), (iii) and (iv) of the definition of
Universal Warrants.

                                        5
<PAGE>

Section 102. Compliance Certificates and Opinions.

      Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of an
Officers' Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.

      Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (except for certificates provided for
in Section 1004) shall include,

            (1)   a statement that each individual signing such certificate or
      opinion has read such covenant or condition and the definitions herein
      relating thereto;

            (2)   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;

            (3)   a statement that, in the opinion of each such individual, such
      individual has made such examination or investigation as is necessary to
      enable him or her to express an informed opinion as to whether or not such
      covenant or condition has been complied with; and

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

Section 103. Form of Documents Delivered to Trustee.

      In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

      Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

      Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

                                        6
<PAGE>

Section 104. Acts of Holders; Record Dates.

      Any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given, made or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

      The fact and date of the execution by any Person of any such instrument or
writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or writing,
or the authority of the Person executing the same, may also be proved in any
other manner which the Trustee deems sufficient.

      The ownership of Securities shall be proved by the Security Register.

      Any request, demand, authorization, direction, notice, consent, waiver or
other Act of the Holder of any Security shall bind every future Holder of the
same Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.

      The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Final Date by
Holders of the requisite number of Outstanding Securities of such series on such
record date. Nothing in this paragraph shall be construed to prevent the Company
from setting a new record date for any action for which a record date has
previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be cancelled
and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action taken by Holders of the requisite number of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Company, at its own
expense, shall cause notice of such record date, the proposed action by Holders
and the applicable Final Date to be given to the Trustee in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section
106.

                                       7
<PAGE>

      The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to join
in the giving or making of (i) any Notice of Default, (ii) any request to
institute proceedings referred to in Section 506(2) or (iii) any direction
referred to in Section 511, in each case with respect to Securities of such
series. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of such series on such record date, and no other Holders,
shall be entitled to join in such notice, declaration, request or direction,
whether or not such Holders remain Holders after such record date; provided that
no such action shall be effective hereunder unless taken on or prior to the
applicable Final Date by Holders of the requisite number of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite number of Outstanding Securities of the relevant series on the
date such action is taken. Promptly after any record date is set pursuant to
this paragraph, the Trustee, at the Company's expense, shall cause notice of
such record date, the proposed action by Holders and the applicable Final Date
to be given to the Company in writing and to each Holder of Securities of the
relevant series in the manner set forth in Section 106.

      With respect to any record date set pursuant to this Section, the party
hereto which sets such record dates may designate any day as the "Final Date"
and from time to time may change the Final Date to any earlier or later day;
provided that no such change shall be effective unless notice of the proposed
new Final Date is given to the other party hereto in writing, and to each Holder
of Securities of the relevant series in the manner set forth in Section 106, on
or prior to the existing Final Date. If a Final Date is not designated with
respect to any record date set pursuant to this Section, the party hereto which
set such record date shall be deemed to have initially designated the 180th day
after such record date as the Final Date with respect thereto, subject to its
right to change the Final Date as provided in this paragraph.

      Without limiting the foregoing, a Holder entitled hereunder to take any
action hereunder with regard to any particular Securities may do so with regard
to all or any lesser number of such Securities or by one or more duly appointed
agents each of which may do so pursuant to such appointment with regard to all
or any lesser number of such Securities.

Section 105. Notices, Etc., to Trustee and Company.

      Any request, demand, authorization, direction, notice, consent, waiver or
Act of Holders or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with,

            (1)   the Trustee by any Holder or by the Company shall be
      sufficient for every purpose hereunder if made, given, furnished or filed
      in writing to or with the Trustee at its Corporate Trust Office or

            (2)   the Company by the Trustee or by any Holder shall be
      sufficient for every purpose hereunder (unless otherwise herein expressly
      provided) if in writing and mailed, first class postage prepaid, to the
      Company addressed to it at the address of its principal office specified
      in the first paragraph of this instrument, Attention Secretary, or at any
      other address previously furnished in writing to the Trustee by the
      Company.

                                        8
<PAGE>

Section 106. Notice to Holders; Waiver.

      Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his or her address as it appears in the Security Register, not
later than the latest date (if any), and not earlier than the earliest date (if
any), prescribed for the giving of such notice. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

      In case by reason of the suspension of regular mail service or by reason
of any other cause it shall be impracticable to give such notice by mail, then
such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

Section 107. Conflict with Trust Indenture Act.

      If any provision hereof limits, qualifies or conflicts with a provision of
the Trust Indenture Act which is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
which may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

Section 108. Effect of Headings and Table of Contents.

      The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

Section 109. Successors and Assigns.

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

Section 110. Separability Clause.

      In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

Section 111. Benefits of Indenture.

      Nothing in this Indenture or in the Securities, express or implied, shall
give to any Person, other than the parties hereto and their successors hereunder
and the Holders, any benefit or any legal or equitable right, remedy or claim
under this Indenture.

                                        9
<PAGE>

Section 112. Characterization of Universal Warrants

      By executing this Indenture, the Company intends that the
characterization, for accounting and other purposes, of the Universal Warrants,
whether as indebtedness or debt for borrowed money or as any other type of
obligation which is not indebtedness or debt for borrowed money, shall not be
affected by the fact that the Universal Warrants have been issued under an
indenture, as opposed to any other instrument, or as a result of any of the
terms and definitions used hereunder with respect to Universal Warrants.

Section 113. Governing Law.

      THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

Section 114. Legal Holidays.

      In any case where the Payment or Settlement Date, or Redemption Date of
any Security or any date on which a Holder of any Security has the right to
exercise such Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Securities
(other than a provision of any Security which specifically states that such
provision shall apply in lieu of this Section)) payment or delivery of any money
or Warrant Property payable or deliverable with respect to such Security or
exercise of such Security need not be made at such Place of Payment on such
date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Payment or Settlement
Date or Redemption Date or on the date for exercise, as the case may be. No
interest shall accrue on any money or Warrant Property during any such delay in
payment.

                                  ARTICLE TWO

                                 SECURITY FORMS

Section 201. Forms Generally.

      The Securities of each series shall be in substantially the form set forth
in this Article, or in such other form as shall be established by or pursuant to
a Board Resolution or in one or more indentures supplemental hereto, in each
case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such
Securities. If all of the Securities of any series established by action taken
pursuant to a Board Resolution are not to be issued at one time, it shall not be
necessary to deliver a record of such action at the time of issuance of each
Security of such series, but an appropriate record of such action shall be
delivered at or before the time of issuance of the first Security of such
series.

                                       10
<PAGE>

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

Section 202. Form of Face of Call Warrant.

        [Insert any legend required by the Internal Revenue Code and the
                            regulations thereunder.]

                       AMERICAN INTERNATIONAL GROUP, INC.

                          [Insert title of Securities]

CUSIP No _______
No. ______

NUMBER OF WARRANTS EVIDENCED BY THIS CERTIFICATE: [If Warrant is a Global
Security, insert-- UP TO] _____

[CASH SETTLEMENT VALUE PER WARRANT
(OR METHOD OF DETERMINING SAME):](1)

[WARRANT PROPERTY: ](2)

[AMOUNT OF WARRANT PROPERTY
PURCHASABLE PER WARRANT:](2)

CALL PRICE PER WARRANT:

[FORM OF PAYMENT OF
CALL PRICE: ](1)

FORM OF SETTLEMENT:

DATES OF EXERCISE:

OTHER TERMS:

(1) Applies if the terms of the Warrants contemplate that the holder may receive
the Cash Settlement Value.

(2) Applies if the terms of the Warrants contemplate that the holder may receive
Warrant Property.

      This certificate certifies that _____________, or registered assigns, is
the Holder of the number of [Designation of Universal Warrants][If Warrant is
not a Global Security, insert -- specified above] [If Warrant is a Global
Security, insert -- specified on Schedule A hereto] (herein called the
"Warrants"). Upon receipt by the Trustee of this certificate, the exercise
notice on the reverse hereof (or an exercise notice in substantially identical
form delivered herewith) (the "Exercise Notice"), duly completed, executed and
delivered on a Date of Exercise specified above and the Call Price per Warrant
set forth above, in the form set forth above, for each Warrant to be exercised
at the Place of Payment, each Warrant evidenced hereby entitles the Holder
hereof to receive, subject to the terms and conditions set forth herein and in
the Indenture referred to below, from American International Group, Inc., a
corporation duly organized and existing under the laws of the State of Delaware
(herein called the "Company", which term includes any successor Person under the
Indenture), [if the terms of the Warrants

                                       11
<PAGE>

contemplate that the holder may receive Warrant Property insert -- the amount
and form of property (the "Warrant Property")] [if the terms of the Warrants
contemplate that the holder may receive the Cash Settlement Value insert -- the
Cash Settlement Value specified above.] [If the terms of the Warrants
contemplate that the holder may receive Warrant Property insert --- Until duly
and properly exercised, Warrants will not entitle the Holders thereof to any of
the rights of the holders of any of the Warrant Property.]

      Any payments of money due on this Warrant will be made at the office or
agency maintained for that purpose in New York, New York, in such coin or
currency of the United States of America as is legal tender for payment of
public or private debts, against surrender of this Warrant in the case of any
payment due on the Payment or Settlement Date; provided that if this Warrant is
a Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

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

      Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Warrant
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:

                                             AMERICAN INTERNATIONAL GROUP, INC.

                                             By ______________________________

Attest: _________________

Section 203. Form of Reverse of Call Warrant.

      This Warrant is one of a duly authorized issue of securities of the
Company, issued and to be issued in one or more series under the Warrant
Indenture, dated as of _______ (herein called the "Indenture", which
term shall have the meaning assigned to it in such instrument), between the
Company and The Bank of New York, as Trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof [if applicable, insert -- , limited
in number to ___________________________ Warrants].

      [If applicable, insert-- The Warrants of this series are subject to
redemption upon not less than _________ days' nor more than _______________
days' notice, at any time [if applicable, insert -- on or after, 20_______], as
a whole or in part, at the election of the Company, at the following redemption
prices:________________]

      [If the Warrant is subject to partial redemption of any kind, insert -- In
the event of redemption of this Warrant in part only, a new Warrant or Warrants
of this series for the unredeemed portion hereof will be issued in the name of
the Holder hereof upon the cancellation hereof.]

                                       12
<PAGE>

      The Warrants are unsecured contractual obligations of the Company and rank
pari passu with the Company's other unsecured contractual obligations and with
the Company's unsecured and unsubordinated debt.

      Subject to the provisions hereof and the Indenture, all or any of the
Warrants evidenced by this certificate may be exercised on any of the dates of
exercise set forth on the face hereof by delivering or causing to be delivered
this Warrant (in accordance with the Applicable Procedures of the Depositary, if
this Security is a Global Security), the Exercise Notice, duly completed and
executed and the Call Price, in the form set forth on the face hereof, for each
such Warrant] to the Corporate Trust Office, in the Borough of Manhattan, The
City of New York, which is, on the date hereof (unless otherwise specified
herein), The Bank of New York, 101 Barclay Street, New York, New York 10286,
Attention: Tender Department, or at such other address as the Trustee may
specify from time to time, with a copy of the Exercise Notice, duly completed
and executed, to the Calculation Agent, ________________________, Attention:

      Each Warrant entitles the Holder thereof to receive, upon exercise, [if
the terms of the Warrants contemplate that the holder may receive the Cash
Settlement Value insert -- the Cash Settlement Value] [if the terms of the
Warrants contemplate that the holder may receive Warrant Property insert -- --
the Warrant Property] set forth on the face hereof.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in number of the Warrants at the time
Outstanding of each series to be affected; provided, however, that if any
provisions to be changed or eliminated shall affect fewer than all the
Outstanding Warrants under the Indenture or under a particular series under this
Indenture, then, to the extent not inconsistent with the Trust Indenture Act,
any such consent may be given by Holders of not less than a majority in number
of the Outstanding Warrants under such series affected by such change or
elimination.

      The Indenture also contains provisions permitting the Holders of specified
percentages in number of the Warrants of each series at the time Outstanding, on
behalf of the Holders of all Warrants of such series, to waive compliance by the
Company with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences; provided, however, that if such provisions
and defaults and their consequences affect fewer than all the Outstanding
Warrants of a series, then to the extent not inconsistent with the Trust
Indenture Act, any waiver of compliance with such provisions and defaults and
their consequences may be given by the Holders of specified percentages of the
Outstanding Warrants of such series affected by such provisions and defaults and
their consequences on behalf of the Holders of all the affected Warrants of such
series. Any such consent or waiver by the Holder of this Warrant shall be
conclusive and binding upon such Holder and upon all future Holders of this
Warrant and of any Warrants issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Warrant.

      No reference herein to the Indenture and no provision of this Warrant or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay or deliver the [If the terms of the Warrants
contemplate that the holder may receive the Cash Settlement Value insert --Cash
Settlement Value] [if the terms of the Warrants contemplate that the holder may
receive Warrant Property insert -- Warrant Property] when due with respect to
this Warrant at the time and place herein prescribed.

                                       13
<PAGE>

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Warrant is registrable in the Security Register,
upon surrender of this Warrant for registration of transfer at the office or
agency of the Company in any Place of Payment with respect to this Warrant, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Warrants of this series and of like tenor, of authorized denominations
and for the same number of Warrants, will be issued to the designated transferee
or transferees.

      The Warrants of this series are issuable only in registered form in
denominations of _______ Warrants and any multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Warrants of this
series are exchangeable for a like number of Warrants of this series and of like
tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

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

      Prior to due presentment of this Warrant for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Warrant is registered as the owner hereof for all
purposes, whether or not any payment or delivery of the [if the terms of the
Warrants contemplate that the holder may receive the Cash Settlement Value
insert -- Cash Settlement Value] [if the terms of the Warrants contemplate that
the holder may receive Warrant Property insert -- Warrant Property] with respect
to this Warrant be overdue, and none of the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

      [If Warrant is a Global Security, insert -- This Warrant is a Global
Security and is subject to the provisions of the Indenture relating to Global
Securities, including the limitations in Section 305 thereof on transfers and
exchanges of Global Securities.]

      This Warrant and the Indenture shall be governed by and construed in
accordance with the laws of the State of New York.

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

                       [Designation of Universal Warrants]

                                 Exercise Notice

The Bank of New York
101 Barclay Street,
Corporate Trust Administration
New York, New York 10286
Attn:

                                       14
<PAGE>

with a copy to:

[Insert name and address of Calculation Agent]
Attn:  Tel.:
       Tel.:
       Fax:

      Re:   Call Warrants on ____________________________________ expiring
            ________________, 20____, issued by American International Group,
            Inc. and described in the prospectus supplement dated ___________
            to the prospectus dated _________, 2004

Ladies and Gentlemen:

      The undersigned is, or is acting on behalf of, the beneficial owner of
such number of the Warrants referenced above as is specified at the end of this
Exercise Notice. The undersigned hereby irrevocably elects to exercise such
number of Warrants. The exercise is to be effective on the Business Day on which
the Trustee has received this Exercise Notice, together with all other items
required to be delivered on exercise, and the Calculation Agent has received a
copy of this Exercise Notice, unless all required items have not been received
by 11:00 A.M., New York City time, on that Business Day, in which case the
exercise will be effective as of the next Business Day. We understand, however,
that no exercise shall be effective unless it is effective, as provided above,
no later than the Business Day before the Expiration Date. The effective date
will be exercise notice date.

      If the Warrants to be exercised are in global form, the undersigned is
delivering this Exercise Notice to the Trustee and to the Calculation Agent, in
each case by facsimile transmission to the relevant number stated above, or such
other number as the Trustee or Calculation Agent may have designated for this
purpose to the Holder. [If applicable, insert -- In addition, the cash amount
equal to the Call Price per Warrant times the number of Warrants indicated
below] [if applicable, insert -- In addition, the beneficial interest in the
number of Warrants indicated below are being transferred on the books of the
Depositary to an account of the Trustee at the Depositary.]

      If the Warrants to be exercised are not in global form, the undersigned or
the beneficial owner is the Holder of the Warrants and is delivering this
Exercise Notice to the Trustee and to the Calculation Agent by facsimile
transmission as described above. In addition, [if applicable, insert -- the cash
amount equal to the Call Price per Warrant times the number of Warrants
indicated below and] the certificate representing the Warrant [is] [are] being
delivered to the Trustee.

      If the undersigned is not the beneficial owner of the Warrant to be
exercised, the undersigned hereby represents that it has been duly authorized by
the beneficial owner to act on behalf of the beneficial owner.

      Terms used and not defined in this notice have the meanings given to them
in the Warrant or the Indenture specified in the Warrant. The exercise of the
Warrant will be governed by the terms of the Warrant and the Indenture.

      The Calculation Agent should note receipt of the copy of this Exercise
Notice, in the place provided below, on the Business Day of receipt, noting the
date and time of receipt. The consideration to be delivered or paid in the
requested exercise should be made on the [fifth] Business Day after the exercise
notice date in accordance with the terms of the warrant.

                                       15
<PAGE>

Number of Warrants to be exercised:

(must be a number greater than or equal to)

Form of Settlement:

                                            Very truly yours,

                                            (Name of beneficial owner or Person
                                            authorized to act on its behalf)

                                            (Title)
                                            (Telephone No.)
                                            (Fax No.)

Receipt of the above Exercise Notice is hereby noted:

                               , as Calculation Agent

By:_________________________________________
   (Title)

Date and time of receipt:
   (Date)
   (Time)

[If Security is a Global Security, insert this Schedule A.]

                                       16
<PAGE>

                                   SCHEDULE A

                       [Designation of Universal Warrants]

                                     GLOBAL
                                UNIVERSAL WARRANT
                       SCHEDULE OF EXCHANGES OR EXERCISES

      The initial number of Universal Warrants represented by this Global
Security is ______________________ (the "Warrants"). In accordance with the
Warrant Indenture, dated as of ___________________, as amended or supplemented,
between the Company, and The Bank of New York, as Trustee, [if applicable,
insert -- and the Unit Agreement, dated as of ___________________, 200________,
between the Company and __________________________________, as Unit Agent], the
following [(A) exchanges of [the number of Warrants previously represented
hereby and indicated below for a like number of Warrants represented by a Global
Security that has been separated from a Unit (a "Warrant")](1) [the number of
Warrants previously represented by a Global Security that is part of a Unit (an
"Attached Warrant") and indicated below for a like number of Warrants
represented by this Global Security](2) or (B)] reductions in the number of
Warrants represented hereby as a result of the exercise of the number of such
Warrants indicated below have been made:

<TABLE>
<CAPTION>
                                                [Number of
                                [Reduced     Attached Warrants    [Increased
                                 Number        Exchanged for      Number of                     Reduced        Notation
 Date of                      Outstanding        Warrants        Outstanding                    Number         Exchanged
[Exchange      [Number         Following      represented by      Following     Number of     Outstanding     Made by or
 or] (1)      Exchanged           Such          this Global          Such       Warrants       Following     for on Behalf
Exercise     Warrants](1)     Exchange](1)      Warrant](2)      Exchange](2)   Exercised    Such Exercise    of Trustee
<S>          <C>              <C>            <C>                 <C>            <C>          <C>             <C>
</TABLE>

      (1)   Applies only if this Global Security is part of a Unit.

      (2)   Applies only if this Global Security has been separated from a Unit.

Section 204. Form of Face of Put Warrant.

        [Insert any legend required by the Internal Revenue Code and the
                            regulations thereunder.]

                       AMERICAN INTERNATIONAL GROUP, INC.

No. ______________________CUSIP No.

NUMBER OF WARRANTS EVIDENCED BY THIS CERTIFICATE: [If Warrant is a
Global Security, insert-- UP TO]

[CASH SETTLEMENT VALUE PER WARRANT
(OR METHOD OF DETERMINING SAME):](1)

[WARRANT PROPERTY:](2)

[AMOUNT OF WARRANT PROPERTY DELIVERABLE BY HOLDER UPON EXERCISE PER
WARRANT:](2)

                                       17
<PAGE>

PUT PRICE PER WARRANT:

[METHOD OF DELIVERY OF ANY WARRANT PROPERTY TO BE DELIVERED FOR SALE UPON
EXERCISE OF WARRANTS: ] (2)

DATES OF EXERCISE:

OTHER TERMS:

      (1)   Applies if the terms of the Warrants contemplate that the holder may
      elect to receive the Cash Settlement Value upon exercise the Warrants.

      (2)   Applies if the terms of the Warrants contemplate that the holder may
      deliver Warrant Property to exercise the Warrants.

      This certificate certifies that __________, or registered assigns, is the
Holder of the number of [Designation of Universal Warrants] (herein called the
"Warrants") [If Warrant is not a Global Security, insert -- specified above] [If
Warrant is a Global Security, insert -- specified on Schedule A hereto]. Upon
receipt by the Trustee of this certificate, the exercise notice on the reverse
hereof (or an exercise notice in substantially identical form delivered
herewith) (the "Exercise Notice"), duly completed, executed and delivered on a
Date of Exercise specified above [if applicable -- and the Warrant Property in
the form deliverable, as set forth above], for each Warrant to be exercised,
delivered as set forth above at the Place of Payment, each Warrant evidenced
hereby entitles the Holder hereof to receive, subject to the terms and
conditions set forth herein and in the Indenture referred to below, from
American International Group, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the "Company", which term
includes any successor Person under the Indenture), [if terms of the Warrants
contemplate that the holder may elect to receive the Cash Settlement Value upon
exercise the Warrants insert -- the Cash Settlement Value] [if the terms of the
Warrants contemplate that the holder may deliver Warrant Property to exercise
the Warrants insert -- Put Price per Warrant specified above.] [If applicable
insert -- Unless otherwise indicated above, a Warrant will not require or
entitle a Holder thereof to sell or deliver to the Company, nor will the Company
be under any obligation to, nor will it, purchase or take delivery from any
Holder of any Warrant Property.]

      Upon exercise of a Warrant, the Company will make only a cash payment in
the amount of the [Cash Settlement Value] [Put Price] per Warrant. Holders of
Warrants will not receive any interest on the [Cash Settlement Value] [Put
Price].

      Any payments of money due on this Warrant will be made at the office or
agency maintained for that purpose in New York, New York, in such coin or
currency of the United States of America as is legal tender for payment of
public or private debts, against surrender of this Warrant in the case of any
payment due on the Payment or Settlement Date; provided that if this Warrant is
a Global Security, payment may be made pursuant to the Applicable Procedures of
the Depositary as permitted in said Indenture.

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

      Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Warrant
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

                                       18
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated:

                                             AMERICAN INTERNATIONAL GROUP, INC.

                                             By:_______________________________

Attest:

_______________________________________

Section 205. Form of Reverse of Put Warrant.

      This Security is one of a duly authorized issue of securities of the
Company, issued and to be issued in one or more series under the Warrant
Indenture, dated as of _____________________(herein called the "Indenture",
which term shall have the meaning assigned to it in such instrument), between
the Company and The Bank of New York, as Trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Warrants and of the terms upon which the Warrants
are, and are to be, authenticated and delivered. This Warrant is one of the
series designated on the face hereof [If applicable, insert -- , limited in
number to ____ Warrants].

      [If applicable, insert-- The Warrants of this series are subject to
redemption upon not less than ___ days' nor more than ___ days' notice, at any
time [if applicable, insert-- on or after ____________________, 20 , as a whole
or in part, at the election of the Company, at the following redemption prices:
____________________________________]

      [If the Security is subject to partial redemption of any kind, insert --
In the event of redemption of this Warrant in part only, a new Warrant or
Warrants of this series for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the cancellation hereof.]

      The Warrants are unsecured contractual obligations of the Company and rank
pari passu with the Company's other unsecured contractual obligations and with
the Company's unsecured and unsubordinated debt.

      Subject to the provisions hereof and the Indenture, all or any of the
Warrants evidenced by this certificate may be exercised on any of the dates of
exercise set forth on the face hereof by delivering or causing to be delivered
this Warrant (in accordance with the Applicable Procedures of the Depositary, if
this Warrant is a Global Security) the Exercise Notice, duly completed and
executed to the Corporate Trust Office, in the Borough of Manhattan, The City of
New York, which is, on the date hereof (unless otherwise specified herein), 101
Barclay Street, New York, NY 10286, Attention: Tender Department, or at such
other address as the Trustee may specify from time to time, with a copy to the
Calculation Agent, Attention:

                                       19
<PAGE>

      Each Warrant entitles the Holder thereof to receive, upon exercise, the
[if the terms of the Warrant contemplate that the holder may elect to receive
the Cash Settlement Value insert -- Cash Settlement Value] [if the terms of the
Warrants contemplate that the holder may deliver Warrant Property insert -- Put
Price] set forth on the face hereof.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Warrants of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in number of the Warrants at the time
Outstanding of each series to be affected; provided, however, that if any
provisions to be changed or eliminated shall affect fewer than all the
Outstanding Warrants under the Indenture or under a particular series under this
Indenture, then, to the extent not inconsistent with the Trust Indenture Act,
any such consent may be given by Holders of not less than a majority in number
of the Outstanding Warrants under such series affected by such change or
elimination.

      The Indenture also contains provisions permitting the Holders of specified
percentages in number of the Warrants of each series at the time Outstanding, on
behalf of the Holders of all Warrants of such series, to waive compliance by the
Company with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences; provided, however, that if such provisions
and defaults and their consequences affect fewer than all the Outstanding
Warrants of a series, then to the extent not inconsistent with the Trust
Indenture Act, any waiver of compliance with such provisions and defaults and
their consequences may be given by the Holders of specified percentages of the
Outstanding Warrants of such series affected by such provisions and defaults and
their consequences on behalf of the Holders of all the affected Warrants of such
series. Any such consent or waiver by the Holder of this Warrant shall be
conclusive and binding upon such Holder and upon all future Holders of this
Warrant and of any Warrant issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Warrant.

      No reference herein to the Indenture and no provision of this Warrant or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay or deliver the money when due with respect to
this Warrant at the time and place herein prescribed.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Warrant is registrable in the Security Register,
upon surrender of this Warrant for registration of transfer at the office or
agency of the Company in any Place of Payment with respect to this Warrant, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Warrants of this series and of like tenor, of authorized denominations
and for the same number of Warrants, will be issued to the designated transferee
or transferees.

      The Warrants of this series are issuable only in registered form in
denominations of ______ Warrants and any multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Warrants of this
series are exchangeable for a like number of Warrants of this series and of like
tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

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

      Prior to due presentment of this Warrant for registration of transfer, the
Company, the Trustee, the Calculation Agent and any agent of the Company or the
Trustee may treat the Person in whose name

                                       20
<PAGE>

this Warrant is registered as the owner hereof for all purposes, whether or not
any payment or delivery of money with respect to this Warrant be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

      [If the Warrant is a Global Security, insert -- This Warrant is a Global
Security and is subject to the provisions of the Indenture relating to Global
Securities, including the limitations in Section 305 thereof on transfers and
exchanges of Global Securities.]

      This Warrant and the Indenture shall be governed by and construed in
accordance with the laws of the State of New York.

      All terms used in this Warrant which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                       [Designation of Universal Warrants]

                                 Exercise Notice

The Bank of New York
101 Barclay Street,
Corporate Trust Administration
New York, New York 10286
Attn:

with a copy to:

[Insert name and address of Calculation Agent.]
Attn:   Tel.:
        Tel.:
Fax:

      Re:   Put Warrants on ___________________________ expiring _______________
            ____________________, 20_____________________, issued by American
            International Group, Inc. and described in the prospectus supplement
            dated ___________________ to the prospectus dated __________________
            ______________________, 2004

Ladies and Gentlemen:

      The undersigned is, or is acting on behalf of, the beneficial owner of
such number of the Warrants referenced above as is specified at the end of this
Exercise Notice. The undersigned hereby irrevocably elects to exercise such
number of the Warrants. The exercise is to be effective on the Business Day on
which the Trustee has received this Exercise Notice, together with all other
items required to be delivered on exercise, and the Calculation Agent has
received a copy of this Exercise Notice, unless all required items have not been
received by 11:00 A.M., New York City time, on that Business Day, in which case
the exercise will be effective as of the next Business Day. We understand,
however, that no exercise shall be effective unless it is effective, as provided
above, no later than the Business Day before the Expiration Date. The effective
date will be the exercise notice date.

      If the Warrants to be exercised are in global form, the undersigned is
delivering this Exercise Notice to the Trustee and to the Calculation Agent, in
each case by facsimile transmission to the relevant number stated above, or such
other number as the Trustee or Calculation Agent may have designated for

                                       21
<PAGE>

this purpose to the Holder. In addition, the beneficial interest in the number
of Warrants indicated below is being transferred on the books of the Depositary
to an account of the Trustee at the Depositary.

      If the Warrants to be exercised are not in global form, the undersigned or
the beneficial owner is the Holder of the Warrants and is delivering this
Exercise Notice to the Trustee and to the Calculation Agent by facsimile
transmission as described above. In addition, the certificate representing the
Warrants is being delivered to the Trustee.

      If the undersigned is not the beneficial owner of the Warrant to be
exercised, the undersigned hereby represents that it has been duly authorized by
the beneficial owner to act on behalf of the beneficial owner.

      Terms used and not defined in this notice have the meanings given to them
in the Warrant or the Indenture specified in the Warrant. The exercise of the
Warrant will be governed by the terms of the Warrant and the Indenture.

      The Calculation Agent should note receipt of the copy of this Exercise
Notice, in the place provided below, on the Business Day of receipt, noting the
date and time of receipt. The consideration to be delivered or paid in the
requested exercise should be made on the [fifth] Business Day after exercise
notice date in accordance with the terms of the warrant.

Number of Warrants to be exercised:

(must be a number greater than or equal to)

Means of Payment: [Cash Settlement Value] [Put Price]:

                                            Very truly yours,

                                            (Name of beneficial owner or Person
                                            authorized to act on its behalf)

                                            (Title)
                                            (Telephone No.)
                                            (Fax No.)

      Receipt of the above exercise notice is hereby noted: __________________,
as Calculation Agent

By:_________________________________________
     (Title)

Date and time of receipt:
   (Date)
   (Time)

[If Security is a Global Security, insert this Schedule A.]

                       [Designation of Universal Warrants]

                                       22
<PAGE>

                                   SCHEDULE A
                                     GLOBAL
                                UNIVERSAL WARRANT
                       SCHEDULE OF EXCHANGES OR EXERCISES

      The initial number of Universal Warrants represented by this Global
Security is ______________________ (the "Warrants"). In accordance with the
Warrant Indenture, dated as of ______________________, as amended or
supplemented, between the Company, and The Bank of New York, as Trustee, [If
applicable, insert -- and the Unit Agreement, dated as of ___________________,
20________, between the Company and _______________________, as Unit Agent], the
following [if applicable, insert -- (A) exchanges [of the number of Warrants
previously represented hereby and indicated below for a like number of Warrants
represented by a Global Security that has been separated from a Unit (a
"Warrant")](1) [the number of Warrants previously represented by a Global
Security that is part of a Unit (an "Attached Warrant") and indicated below for
a like number of Warrants represented by this Global Security](2) or (B)]
reductions in the number of Warrants represented hereby as a result of the
exercise of the number of such Warrants indicated below have been made:

<TABLE>
<CAPTION>
                               [Reduced                             [Increased                             Notation
                                Number      [Number of Attached       Number                  Reduced     Exchanged
                             Outstanding    Warrants Exchanged     Outstanding                Number      Made by or
  Date of                     Following        for Warrants         Following    Number of   Following      for on
 [Exchange      [Number          Such       represented by this        Such      Warrants      Such       Behalf of
or] Exercise  Warrants](1)   Exchange](1)   Global Warrant](2)     Exchange](2)  Exercised   Exercise      Trustee
<S>           <C>            <C>            <C>                    <C>           <C>         <C>          <C>
</TABLE>

      (1)   Applies only if this Global Security is part of a Unit.

      (2)   Applies only if this Global Security has been separated from a Unit.

Section 206. Form of Legend for Global Securities.

      Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:

      This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary or a
nominee thereof. This Security may not be exchanged in whole or in part for a
Security registered, and no transfer of this Security in whole or in part may be
registered, in the name of any Person other than such Depositary or a nominee
thereof, except in the limited circumstances described in the Indenture.

Section 207. Form of Trustee's Certificate of Authentication.

      The Trustee's certificates of authentication shall be in substantially the
following form:

                                       23
<PAGE>

      This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.

Dated:                                           The Bank of New York
                                                 As Trustee

                                                 By ____________________________
                                                    Authorized Signatory

                                 ARTICLE THREE

                                 THE SECURITIES

Section 301. Amount Unlimited; Issuable in Series.

      The aggregate number of Securities which may be authenticated and
delivered under this Indenture is unlimited.

      The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series,

            (1)   the title of the Securities of the series (which shall
      distinguish the Securities of the series from Securities of any other
      series);

            (2)   any limit upon the aggregate number of the Securities of the
      series which may be authenticated and delivered under this Indenture
      (except for Securities authenticated and delivered upon registration of
      transfer of, or in exchange for, or in lieu of, other Securities of the
      series pursuant to Section 304, 305, 306, 906, or 1107 and except for any
      Securities which, pursuant to Section 303, are deemed never to have been
      authenticated and delivered hereunder);

            (3)   the money payable or receivable or specific Warrant Property
      purchasable or deliverable by or on behalf of the Holder upon exercise of
      the Securities of the series, and the amount thereof (or the method for
      determining the same);

            (4)   the price at which the Securities of the series will be issued
      and, if other than U.S. dollars, the coin or currency or composite
      currency in which such issue price will be payable;

            (5)   whether the Securities of the series are warrants that grant
      the Holder of the warrant the right to purchase the Warrant Property
      (including warrants that may be settled by means of net cash settlement or
      cashless exercise) ("Call Warrants"), warrants that grant the Holder of
      the warrant the right to sell the Warrant Property (including warrants
      that may be settled by means of net cash settlement or cashless exercise)
      ("Put Warrants") or any other type of warrants;

                                       24
<PAGE>

            (6)   the price at which and, if other than U.S. Dollars, the coin
      or currency or composite currency with which the Warrant Property may be
      purchased or sold by or on behalf of the Holder upon exercise of the
      Securities of the series (or the method for determining the same);

            (7)   if applicable, the period or periods within which, the price
      or prices at which and the terms and conditions upon which any Securities
      of the series may be redeemed, in whole or in part, at the option of the
      Company and, if other than by a Board Resolution, the manner in which any
      election by the Company to redeem the Securities shall be evidenced;

            (8)   whether the exercise price for the Securities of the series
      may be paid in cash or by cashless exercise effected by the exchange of
      any such Securities or other securities of the Company, or both, or
      otherwise, whether such exercise price may be netted against any money or
      Warrant Property payable or deliverable by the Company with respect to
      such Securities and the method of exercise of such Securities;

            (9)   if the Securities of the series are Call Warrants, whether the
      exercise of such Securities is to be settled by payment in cash or
      delivery of the Warrant Property by the Company or both or otherwise, and
      whether the election of such form of settlement is to be at the option of
      the Holder of the Company;

            (10)  if the Securities of the series are Put Warrants, whether the
      exercise of such Securities is to be settled by payment in cash or
      delivery of the Warrant Property by the Holder or both, or otherwise, and
      whether the election of such form of settlement is to be at the option of
      the Holder or of the Company;

            (11)  the date on which the right to exercise the Securities of the
      series shall commence and the Expiration Date of the series or, if the
      Securities of the series are not continuously exercisable throughout such
      period, the specific date or dates on which they will be exercisable;

            (12)  if applicable, that any Securities of the series shall be
      issuable in whole or in part in the form of one or more Global Securities
      and, in such case, the respective Depositaries for such Global Securities,
      the form of any legend or legends which shall be borne by any such Global
      Security in addition to or in lieu of that set forth in Section 206, any
      addition to, elimination of or other change in the circumstances set forth
      in Clause (2) of the last paragraph of Section 305 in which any such
      Global Security may be exchanged in whole or in part for Securities
      registered, and any transfer of such Global Security in whole or in part
      may be registered, in the name or names of Persons other than the
      Depositary for such Global Security or a nominee thereof and any other
      provisions governing exchanges or transfers or any such Global Security;

            (13)  any warrant agent, Depositaries, Paying Agents, transfer
      agents or registrars or any determination agents, Calculation Agents or
      other agents with respect to Securities of the series;

            (14)  whether the Securities of the series will be issued separately
      or together as a unit (a "Unit") with one or more other securities of the
      Company or any other person and, if the Securities of the series are to be
      issued as components of Units, whether and

                                       25
<PAGE>

      on what terms the Securities of the series may be separated from the other
      components of such Units prior to the Expiration Date of such Securities;

            (15) the denominations in which any Securities of the series shall
      be issuable;

            (16) the Place of Payment with respect to Securities of the series,
      if other than the Corporate Trust Office;

            (17) any addition to, deletion from or other change in the covenants
      set forth in Article Ten which applies to Securities of the series;

            (18) any provisions necessary to permit or facilitate the issuance,
      payment or exercise of any Securities of the series that may be exercised
      for Warrant Property, whether in addition to or in lieu of, any payment of
      money or delivery of other property and whether at the option of the
      Company or otherwise;

            (19) any addition to, deletion from or other change in the Events of
      Default which applies to Securities of the series, including making Events
      of Default inapplicable or changing the remedies available to Holders of
      the Securities of the series upon an Event of Default; and

            (20) any other terms of the series (which terms shall not be
      inconsistent with the provisions of this Indenture, except as permitted by
      Section 901(5)).

      All Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to the
Board Resolution referred to above and (subject to Section 303) set forth, or
determined in the manner provided, in the Officers' Certificate referred to
above or in any such indenture supplemental hereto. All Securities of any one
series need not be issued at one time and, unless otherwise provided in or
pursuant to the Board Resolution referred to above and (subject to Section 303)
set forth or determined in the manner provided, in the Officers' Certificate
referred to above or in any such indenture supplemental hereto with respect to a
series of Securities, additional Securities of a series may be issued, at the
option of the Company, without the consent of any Holder, at any time and from
time to time.

      If any of the terms of the series are established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.

      The Securities are unsecured contractual obligations of the Company and
shall rank pari passu with the Company's other unsecured contractual obligations
and with the Company's unsecured and unsubordinated debt except as may otherwise
be provided in or pursuant to the Board Resolution referred to above and
(subject to Section 303) set forth, or determined in the manner provided, in the
Officers' Certificate referred to above or in any such indenture supplemental
hereto.

      Until duly and properly exercised, no Call Warrant shall entitle the
Holder or any beneficial owner thereof to any of the rights of a holder or
beneficial owner of Warrant Property, including the right to receive the payment
or any dividends on, principal of, or premium or interest on Warrant Property or
to vote or to enforce any rights under any documents governing Warrant Property.

                                       26
<PAGE>

Section 302. Denominations.

      The Securities of each series shall be issuable only in registered form
without coupons and only in such denominations as shall be specified as
contemplated by Section 301. In the absence of any such specified denomination
with respect to the Securities of any series, the Securities of such series
shall be issuable in denominations of 100 Warrants and any integral multiple
thereof.

Section 303. Execution, Authentication, Delivery and Dating.

      The Securities shall be executed on behalf of the Company by its Chairman,
one of its Vice Chairman, its President, its Treasurer or one of its Vice
Presidents and attested by its Secretary or one of its Assistant Secretaries.
The signature of any of these officers on the Securities may be manual or
facsimile.

      Securities bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.

      At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. If the
form or terms of the Securities of the series have been established by or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301,
in authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating,

            (1) if the form of such Securities has been established by or
      pursuant to Board Resolution as permitted by Section 201, that such form
      has been established in conformity with the provisions of this Indenture;

            (2) if the terms of such Securities have been established by or
      pursuant to Board Resolution as permitted by Section 301, that such terms
      have been established in conformity with the provisions of this Indenture;
      and

            (3) that such Securities, when authenticated and delivered by the
      Trustee and issued by the Company in the manner and subject to any
      conditions specified in such Opinion of Counsel, will constitute valid and
      legally binding obligations of the Company enforceable in accordance with
      their terms, subject to bankruptcy, insolvency, fraudulent transfer,
      reorganization, moratorium and similar laws of general applicability
      relating to or affecting creditors' rights and to general equity
      principles.

If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

      Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, including in the event that the size of a series of Outstanding Securities
is increased as contemplated by Section 301, it shall not be necessary to
deliver

                                       27
<PAGE>

the Officers' Certificate otherwise required pursuant to Section 301 or the
Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the authentication of each Security of such
series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

      Each Security shall be dated the date of its authentication.

      No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 308, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

Section 304. Temporary Securities.

      Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

      If temporary Securities of any series are issued, the Company will cause
definitive Securities of that series to be prepared without unreasonable delay.
After the preparation of definitive Securities of such series, the temporary
Securities of such series shall be exchangeable for definitive Securities of
such series upon surrender of the temporary Securities of such series at the
office or agency of the Company in a Place of Payment for that series, without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities of any series, the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor one or more definitive
Securities of the same series, of any authorized denomination and of like tenor
and of a like aggregate number of Securities. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series and tenor.

Section 305. Registration, Registration of Transfer and Exchange.

      The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby
appointed "Security Registrar" for the purpose of registering Securities and
transfers of Securities as herein provided.

      Upon surrender for registration of transfer of any Security of a series at
the office or agency of the Company in a Place of Payment for that series, the
Company shall execute and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of like tenor and aggregate
number of Securities.

                                       28
<PAGE>

      At the option of the Holder, Securities of any series may be exchanged for
other Securities of the same series, of any authorized denominations and of like
tenor and aggregate number of Securities, upon surrender of the Securities to be
exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

      All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
contractual obligation, and entitled to the same benefits under this Indenture,
as the Securities surrendered upon such registration of transfer or exchange.

      Every Security presented or surrendered for registration of transfer or
for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.

      No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.

      If the Securities of any series are to be redeemed in part, the Company
shall not be required (A) to issue, register the transfer of or exchange any
Securities of that series during a period beginning at the opening of business
15 days before the day of the mailing of a notice of redemption of any such
Securities selected for redemption under Section 1103 and ending at the close of
business on the day of such mailing or during such period as otherwise specified
as contemplated by Section 301 for such Securities, or (B) to register the
transfer of or exchange any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.

      The provisions of Clauses (1), (2), (3) and (4) below shall apply only to
Global Securities:

            (1) Each Global Security authenticated under this Indenture shall be
      registered in the name of the Depositary designated for such Global
      Security or a nominee thereof and delivered to such Depositary or a
      nominee thereof or custodian therefor, and each such Global Security shall
      constitute a single Security for all purposes of this Indenture.

            (2) Notwithstanding any other provision in this Indenture, no Global
      Security may be exchanged in whole or in part for Securities registered,
      and no transfer of a Global Security in whole or in part may be
      registered, in the name of any Person other than the Depositary for such
      Global Security or a nominee thereof unless (A) such Depositary has
      notified the Company that it is unwilling or unable or no longer permitted
      under applicable law to continue as Depositary for such Global Security,
      (B) there shall have occurred and be continuing an Event of Default with
      respect to such Global Security, (C) the Company so directs the Trustee by
      a Company Order or (D) there shall exist such circumstances, if any, in
      addition to or in lieu of the foregoing as have been specified for this
      purpose as contemplated by Section 301.

            (3) Subject to Clause (2) above, any exchange of a Global Security
      for other Securities may be made in whole or in part, and all Securities
      issued in exchange for a Global Security or any portion thereof shall be
      registered in such names as the Depositary for such Global Security shall
      direct.

                                       29
<PAGE>

            (4) Every Security authenticated and delivered upon registration of
      transfer of, or in exchange for or in lieu of, a Global Security or any
      portion thereof, whether pursuant to this Section, Section 304, 306, 906
      or 1107 or otherwise, shall be authenticated and delivered in the form of,
      and shall be, a Global Security, unless such Security is registered in the
      name of a Person other than the Depositary for such Global Security or a
      nominee thereof.

      In the event that upon any exercise of Securities evidenced by a
certificate the number of Securities exercised shall be less than the total
number of Securities evidenced by such certificate, there shall be issued to the
Holder thereof or his assignee a new certificate evidencing the number of
Securities of the same series and of like tenor not exercised, provided that in
the case of Securities evidenced by one or more Global Securities, in lieu of
issuing such new certificate the Trustee shall note the cancellation of such
exercised Securities and the number of such Securities not exercised and
remaining Outstanding by notation on such Global Security(ies).

Section 306. Mutilated, Destroyed, Lost and Stolen Securities.

      If any mutilated Security is surrendered to the Trustee, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same series and of like tenor and number of Securities and
bearing a number not contemporaneously outstanding.

      If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor number of Securities and bearing a number
not contemporaneously outstanding.

      In case any such mutilated, destroyed, lost or stolen Security has been or
is about to be exercised or deemed to be exercised, the Company in its
discretion may, instead of issuing a new Security, direct the Trustee to treat
the same as if it had received the Security together with an irrevocable notice
in proper form in respect thereof.

      Upon the issuance of any new Security under this Section, 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 (including
the fees and expenses of the Trustee) connected therewith.

      Every new Security of any series issued pursuant to this Section in lieu
of any mutilated, destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the
mutilated, destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Securities of that series duly issued
hereunder.

      The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

                                       30
<PAGE>

Section 307. Persons Deemed Owners.

      Prior to due presentment of a Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Security is registered as the owner of such Security
for the purpose of receiving payment or delivery of any money or Warrant
Property payable or deliverable with respect to such Security, exercising such
Security and for all other purposes whatsoever, whether or not such payment or
delivery with respect to such Security be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.

      Notwithstanding the foregoing, with respect to any Global Security,
nothing herein shall prevent the Company, the Trustee, or any agent of the
Company or Trustee, from giving effect to any written certification, proxy, or
other authorization furnished by a Depositary or impair, as between a Depositary
and holders of beneficial interests in any Global Security, the operation of the
Applicable Procedures.

Section 308. Cancellation.

      All Securities surrendered for exercise, redemption or registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly canceled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly cancelled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of in
accordance with its customary procedures.

Section 309. Calculation Agent.

      Pursuant to Section 301, the Company may, in connection with any series of
Securities, appoint a Calculation Agent to make any calculations as may be
required pursuant to the terms of such series of Securities. Any such
Calculation Agent shall act as an independent expert, and the Company may
provide that the Calculation Agent's calculations and determinations under this
Indenture shall, absent manifest error, be final and binding on the Company, the
Trustee and the Holders of the Securities of such series.

Section 310. CUSIP Numbers.

      The Company in issuing any series of the Securities may use CUSIP numbers,
if then generally in use, and thereafter with respect to such series, the
Trustee may use such numbers in any notice of redemption with respect to such
series, provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities of
that series or as contained in any notice of a redemption and that reliance may
be placed only on the other identification numbers printed on the Securities of
that series, and any such redemption shall not be affected by any defect in or
omission of such numbers.

                                       31
<PAGE>

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

Section 401. Satisfaction and Discharge of Indenture.

      This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

            (1)   either

                  (A) all Securities theretofore authenticated and delivered
            (other than (i) Securities which have been mutilated, destroyed,
            lost or stolen and which have been replaced, paid or settled as
            provided in Section 306 and (ii) Securities for whose payment or
            settlement money or Warrant Property has theretofore been deposited
            in trust or segregated and held in trust by the Company and
            thereafter repaid or redelivered to the Company or discharged from
            such trust, as provided in Section 1003) have been delivered to the
            Trustee for cancellation; or

                  (B) all such Securities not theretofore delivered to the
            Trustee for cancellation

                        (i) have been exercised,

                        (ii) will be automatically exercised at their Expiration
            Date within one year, or

                        (iii) are to be called for redemption within one year
            under arrangements satisfactory to the Trustee for the giving of
            notice of redemption by the Trustee in the name, and at the expense,
            of the Company,

            and the Company in the case of (i), (ii) or (iii) above, has
            deposited or caused to be deposited with the Trustee as trust funds
            or trust property in trust for the purpose, money or Warrant
            Property in an amount sufficient to pay and discharge the entire
            contractual obligation on such Securities not theretofore delivered
            to the Trustee for cancellation, for all amounts of money or Warrant
            Property due with respect to such Securities to the date of such
            deposit or the Payment or Settlement Date or Redemption Date of such
            Securities, as the case may be;

            (2) the Company has paid or caused to be paid all other sums payable
      hereunder by the Company; and

            (3) the Company has delivered to the Trustee 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.

      Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607 and, if money or
Warrant Property shall have been deposited with the

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<PAGE>

Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations
of the Trustee under Section 402 and the last paragraph of Section 1003 shall
survive such satisfaction and discharge.

Section 402. Application of Trust Money and Warrant Property.

      Subject to the provisions of the last paragraph of Section 1003, all money
and Warrant Property deposited with the Trustee pursuant to Section 401 shall be
held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment or delivery, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Persons entitled thereto, of all amounts of
money or Warrant Property due with respect to such Securities for whose payment
or settlement such money or Warrant Property has been deposited with the
Trustee.

                                  ARTICLE FIVE

                                    REMEDIES

Section 501. Events of Default.

      Except as otherwise specified as contemplated by Section 301 for
Securities of any series, "Event of Default", wherever used herein with respect
to any Securities of any series, means any one of the following events (whatever
the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

            (1) Default by the Company in the payment or delivery of any money
      or Warrant Property in respect of such Security (but not such a default in
      respect of any other Security of that or any other series) in accordance
      with its terms and continuance of such default for a period of five days;
      or

            (2) default in the performance, or breach, of any covenant or
      warranty of the Company in this Indenture (other than a covenant or
      warranty a default in whose performance or whose breach is elsewhere in
      this Section specifically dealt with or which has expressly been included
      in this Indenture solely for the benefit of a Security or Securities other
      than such Security), and continuance of such default or breach for a
      period of 60 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 at least 25% in number of the Outstanding Securities of
      that series 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

            (3) the entry by a court having jurisdiction in the premises of (A)
      a decree or order for relief in respect of the Company in an involuntary
      case or proceeding under any applicable Federal or State bankruptcy,
      insolvency, reorganization or other similar law or (B) a decree or order
      adjudging the Company bankrupt or insolvent, or approving as properly
      filed a petition seeking reorganization, arrangement, adjustment or
      composition of or in respect of the Company under any applicable Federal
      or State law, or appointing a custodian, receiver, liquidator, assignee,
      trustee, sequestrator or other similar official of the Company or of any
      substantial part of its property, or ordering the winding up or
      liquidation of its affairs, and the continuance of any such decree or
      order for relief or any such other decree or order unstayed and in effect
      for a period of 60 consecutive days; or

                                       33
<PAGE>

            (4) the commencement by the Company of a voluntary case or
      proceeding under any applicable Federal or State bankruptcy, insolvency,
      reorganization or other similar law or of any other case or proceeding to
      be adjudicated bankrupt or insolvent, or the consent by it to the entry
      of a decree or order for relief in respect of the Company in an
      involuntary case or proceeding under any applicable Federal or State
      bankruptcy, insolvency, reorganization or other similar law or to the
      commencement of any bankruptcy or insolvency case or proceeding against
      it, or the filing by it of a petition or answer or consent seeking
      reorganization or relief under any applicable Federal or State law, or the
      consent by it to the filing of such petition or to the appointment of or
      taking possession by a custodian, receiver, liquidator, assignee, trustee,
      sequestrator or other similar official of the Company or of any
      substantial part of its property, or the making by it of an assignment for
      the benefit of creditors, or the admission by it in writing of its
      inability to pay its debts generally as they become due, or the taking of
      corporate action by the Company in furtherance of any such action; or

            (5) any other Event of Default provided with respect to such
      Security or Securities of that series.

      Notwithstanding any other provision of this Indenture or of any Security,
a failure by the Company to perform any obligation or otherwise observe any
covenant in any Security or in this Indenture insofar as it applies to any
Security shall not constitute a default unless all conditions precedent to the
Company's obligation to be satisfied by the Holder of such Security shall have
been satisfied.

Section 502. Collection of Amounts Due and Suits for Enforcement by Trustee.

      The Company covenants that if default is made by the Company in the
payment or delivery of any money or Warrant Property in respect of any Security
in accordance with its terms, upon satisfaction by the Holder thereof of all
conditions precedent to the Company's obligations to make such payment or
delivery to be satisfied by such Holder, the Company will, upon demand of the
Trustee, pay to it, for the benefit of the Holder of such Security, the whole
amount of money or Warrant Property then due and payable on such Security and,
in addition thereto, such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

      If an Event of Default with respect to any Security occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holder of such Security by such appropriate
judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy.

Section 503. Trustee May File Proofs of Claim.

      In case of any judicial proceeding relative to the Company or any other
obligor upon the Securities, its property or its creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, to take
any and all actions authorized under the Trust Indenture Act in order to have
claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys,
Warrant Property or other property payable or deliverable on any such claims and
to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder 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 Holders, to pay to the Trustee any amount due it

                                       34
<PAGE>

for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607.

      No provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors' or
other similar committee.

Section 504. Trustee May Enforce Claims Without Possession of Securities.

      All rights of action and claims under this Indenture or the Securities may
be prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been
recovered.

Section 505. Application of Money Collected.

      Any money or Warrant Property collected by the Trustee pursuant to this
Article shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money or Warrant Property
on account of amounts when due with respect to the Securities, upon presentation
of the Securities and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

            FIRST: To the payment of all amounts due the Trustee under Section
      607;

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

            THIRD: To the Company.

Section 506. Limitation on Suits.

      No Holder of any Security of any series shall have any right to institute
any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless

            (1) such Holder has previously given written notice to the Trustee
      of a continuing Event of Default with respect to the Securities of that
      series;

            (2) the Holders of not less than 25% in number of the Outstanding
      Securities of that series shall have made written request to the Trustee
      to institute proceedings in respect of such Event of Default in its own
      name as Trustee hereunder;

                                       35
<PAGE>

            (3) such Holder or Holders have offered to the Trustee reasonable
      indemnity against the costs, expenses and liabilities to be incurred in
      compliance with such request;

            (4) the Trustee for 60 days after its receipt of such notice,
      request and offer of indemnity has failed to institute any such
      proceeding; and

            (5) no direction inconsistent with such written request has been
      given to the Trustee during such 60-day period by the Holders of a
      majority in number of the Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.

Section 507. Unconditional Right of Holders to Receive Money or Warrant Property
             Due with Respect to Securities and to Exercise.

      Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive,
upon satisfaction by such Holder of all conditions precedent, payment or
delivery of the money or Warrant Property due with respect to such Security on
the Payment or Settlement Date (or, in the case of redemption or repayment, on
the Redemption Date or date for repayment, as the case may be) of such Security
and to exercise such Security in accordance with its terms and to institute suit
for the enforcement of any such payment, or delivery, and such right to exercise
and such rights shall not be impaired without the consent of such Holder.

Section 508. Restoration of Rights and Remedies.

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

Section 509. Rights and Remedies Cumulative.

      Except as otherwise provided with respect to the replacement or payment or
settlement of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

Section 510. Delay or Omission Not Waiver.

      No delay or omission of the Trustee or of any Holder of any Securities to
exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or

                                       36
<PAGE>

by law to the Trustee or to the Holders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Holders, as the
case may be.

Section 511. Control by Holders.

      The Holders of a majority in number of the Outstanding Securities of any
series 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 the Securities of such
series, provided that

            (1) such direction shall not be in conflict with any rule of law or
      with this Indenture, and

            (2) the Trustee may take any other action deemed proper by the
      Trustee which is not inconsistent with such direction.

Section 512. Waiver of Past Defaults.

      Subject to the provisions of the next following paragraph, the Holders of
not less than a majority in number of the Outstanding Securities of any series
may on behalf of the Holders of all the Securities of such series waive any past
default by the Company hereunder with respect to such series and its
consequences, except a default

            (1) in the payment or delivery of the money or Warrant Property due
      on any Security of such series or in respect of any Holder's right to
      exercise any Security, or

            (2) in respect of a covenant or provision hereof which under Article
      Nine cannot be modified or amended without the consent of the Holder of
      each Outstanding Security of such series affected.

      If any default referred to in the preceding paragraph affects fewer than
all the Outstanding Securities of a series, then to the extent not inconsistent
with the Trust Indenture Act, any waiver with respect to any such default and
its consequences may be given by the Holders of not less than a majority in
number of the Outstanding Securities of such series affected by such default on
behalf of the Holders of all the affected Securities of such series.

      Upon any such waiver, such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.

Section 513. Undertaking for Costs.

      In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit to
file an undertaking to pay the costs of such suit, and may assess reasonable
costs against any such party litigant, in the manner and to the extent provided
in the Trust Indenture Act; provided that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company.

                                       37
<PAGE>

Section 514. Waiver of Stay or Extension Laws.

      The Company covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                   ARTICLE SIX

                                   THE TRUSTEE

Section 601. Certain Duties and Responsibilities.

      The duties and responsibilities of the Trustee shall be as provided by the
Trust Indenture Act. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

Section 602. Notice of Defaults.

      If a default occurs hereunder with respect to Securities of any series,
the Trustee shall give the Holders of Securities of such series notice of such
default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any default of the character specified in Section
501(2) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the
purpose of this Section, the term "default" means any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect
to Securities of such series.

Section 603. Certain Rights of Trustee.

      Subject to the provisions of Section 601:

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

            (2) any request or direction of the Company mentioned herein shall
      be sufficiently evidenced by a Company Request or Company Order, and any
      resolution of the Board of Directors shall be sufficiently evidenced by a
      Board Resolution;

            (3) whenever in the administration of this Indenture the Trustee
      shall deem it desirable that a matter be proved or established prior to
      taking, suffering or omitting any

                                       38
<PAGE>

      action hereunder, the Trustee (unless other evidence be herein
      specifically prescribed) may, in the absence of bad faith on its part,
      conclusively rely upon an Officers' Certificate;

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

            (5) the Trustee shall be under no obligation to exercise any of the
      rights or powers vested in it by this Indenture at the request or
      direction of any of the Holders pursuant to this Indenture, unless such
      Holders shall have offered to the 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;

            (6) 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, direction, consent, order,
      warrant or other paper or document, but the Trustee, in its discretion,
      may make such further inquiry or investigation into such facts or matters
      as it may see fit, and, if the Trustee shall determine to make such
      further inquiry or investigation, it shall be entitled to examine the
      books, records and premises of the Company, personally or by agent or
      attorney;

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

            (8) the rights, privileges, protections, immunities and benefits
      given to the Trustee, including, without limitation, its right to be
      indemnified, are extended to, and shall be enforceable by, the Trustee in
      each of its capacities hereunder.

Section 604. Not Responsible for Recitals or Issuance of Securities.

      The recitals contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company
and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Securities. The Trustee shall not be accountable for the use or
application by the Company of Securities or the proceeds thereof.

Section 605. May Hold Securities.

      The Trustee, any Paying Agent, any Security Registrar, any Calculation
Agent or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
608 and 613, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Paying Agent, Security Registrar, any Calculation
Agent or such other agent.

Section 606. Money or Warrant Property Held in Trust.

      Money or Warrant Property held by the Trustee in trust hereunder need not
be segregated from other funds, securities or other property except to the
extent required by law. The Trustee shall be under

                                       39
<PAGE>

no liability for interest on any money or Warrant Property received by it
hereunder except as otherwise agreed with the Company.

Section 607. Compensation and Reimbursement.

      The Company agrees

            (1) to pay to the Trustee from time to time such compensation as
      shall be agreed in writing between the Company and the Trustee for all
      services rendered by it hereunder (which compensation shall not be limited
      by any provision of law in regard to the compensation of a trustee of an
      express trust);

            (2) except as otherwise expressly provided herein, to reimburse the
      Trustee upon its request for all reasonable expenses, disbursements and
      advances incurred or made by the Trustee in accordance with any provision
      of this Indenture (including the reasonable compensation and the
      reasonable expenses and disbursements of its agents and counsel), except
      any such expense, disbursement or advance as may be attributable to its
      negligence or bad faith; and

            (3) to indemnify the Trustee for, and to hold it harmless against,
      any loss, liability or expense incurred without negligence or bad faith on
      its part, arising out of or in connection with the acceptance or
      administration of the trust or trusts hereunder, including the reasonable
      costs and expenses of defending itself against any claim or liability in
      connection with the exercise or performance of any of its powers or duties
      hereunder.

      When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 501(3) or Section 501(4), 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 sate bankruptcy, insolvency or
other similar law.

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

Section 608. Conflicting Interests.

      If the Trustee has or shall acquire a conflicting interest within the
meaning 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
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series or a trustee under the Indenture, dated as of
April 15, 1983, as supplemented by the First Supplemental Indenture, dated as of
September 9, 1986, between the Company and the Trustee; the Indenture, dated as
of July 15, 1989, as supplemented by the First Supplemental Indenture, dated as
of May 15, 2003, between the Company and the Trustee, as amended or
supplemented; the Indenture date November 9, 2001 between the Company and the
Trustee, as amended or supplemented; and the Indenture, dated as of
______________, between the Company and the Trustee, as amended or supplemented.

                                       40
<PAGE>

Section 609. Corporate Trustee Required; Eligibility.

      There shall at all times be one (and only one) Trustee hereunder with
respect to the Securities of each series, which may be Trustee hereunder for
Securities of one or more other series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000 and has its Corporate Trust Office
in the Borough of Manhattan, The City of New York. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this Section
and to the extent permitted by the Trust Indenture Act, 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
the Trustee with respect to the Securities of any series shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

Section 610. Resignation and Removal; Appointment of Successor.

      No resignation or removal of the 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 Section 611.

      The Trustee may resign at any time with respect to the Securities of one
or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee, at the expense of the Company, may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

      The Trustee may be removed at any time with respect to the Securities of
any series by Act of the Holders of a majority in number of the Outstanding
Securities of such series, delivered to the Trustee and to the Company. If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of removal, the Trustee being removed, at the expense of the Company, may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

      If at any time:

            (1) the Trustee shall fail to comply with Section 608 after written
      request therefor by the Company or by any Holder who has been a bona fide
      Holder of a Security for at least six months, or

            (2) the Trustee shall cease to be eligible under Section 609 and
      shall fail to resign after written request therefor by the Company or by
      any such Holder, 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, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 513, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of

                                       41
<PAGE>

competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

      If the Trustee shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Trustee for any cause, with respect to
the Securities of one or more series, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee or Trustees with respect to the Securities
of that or those series (it being understood that any such successor Trustee may
be appointed with respect to the Securities of one or more or all of such series
and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable
requirements of Section 611. If, within one year after such resignation, removal
or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in number of the Outstanding Securities of such series delivered
to the Company and the retiring Trustee, the successor Trustee so appointed
shall, forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 611, become the successor Trustee with
respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders and accepted appointment in the manner required by Section 611, any
Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

      The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders of
Securities of such series in the manner provided in Section 106. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

Section 611. Acceptance of Appointment by Successor.

      In case of the appointment hereunder of a successor Trustee with respect
to all Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly
assign, transfer and deliver to such successor Trustee all money, Warrant
Property and other property held by such retiring Trustee hereunder.

      In case of the appointment hereunder of a successor Trustee with respect
to the Securities of one or more (but not all) series, the Company, the retiring
Trustee and each successor Trustee with respect to the Securities of one or more
series shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (1) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates, (2) if the retiring Trustee
is not retiring with respect to all Securities, 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 Securities of that
or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to

                                       42
<PAGE>

provide for or facilitate the administration of the trusts 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; and upon the execution and delivery of such supplemental indenture
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates; but, on
request of the Company or any successor Trustee, such retiring Trustee shall
duly assign, transfer and deliver to such successor Trustee all money, Warrant
Property and other property held by such retiring Trustee hereunder with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates.

      Upon request of any such successor Trustee, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Trustee all such rights, powers and trusts referred to in the
first or second preceding paragraph, as the case may be.

      No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article.

Section 612. Merger, Conversion, Consolidation or Succession to Business.

      Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion, consolidation or sale to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

Section 613. Preferential Collection of Claims Against Company.

      If and when the Trustee shall be or become a creditor of the Company (or
any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).

                                  ARTICLE SEVEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 701. Company to Furnish Trustee Names and Addresses of Holders.

      The Company will furnish or cause to be furnished to the Trustee

            (1) semi-annually, not later than March 31 and September 30 in each
      year a list, each in such form as the Trustee may reasonably require, of
      the names and addresses of the Holders of Securities of such series as of
      the preceding March 16 or September 15; and

                                       43
<PAGE>

            (2) 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;

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

Section 702. Preservation of Information; Communications to Holders.

      The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.

      The rights of Holders to communicate with other Holders with respect to
their rights under this Indenture or under the Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided by the Trust
Indenture Act.

      Every Holder of Securities, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company nor the Trustee nor any
agent of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

Section 703. Reports by Trustee.

      The Trustee shall transmit to Holders such reports concerning the Trustee
and its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto.

      A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company. The Company
will notify the Trustee when any Securities are listed on any stock exchange.

Section 704. Reports by Company.

      The Company shall file with the Trustee and the Commission, and transmit
to Holders, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the Trust Indenture Act at the times and
in the manner provided pursuant to such Act.

      Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to conclusively rely exclusively on Officers' Certificates).

                                       44
<PAGE>

                                  ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 801. Company May Consolidate, Etc., Only on Certain Terms.

      The Company shall not consolidate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an entirety
to any Person unless:

            (1) in case the Company shall consolidate with or merge into another
      Person or convey, transfer or lease its properties and assets
      substantially as an entirety to any Person, the Person formed by such
      consolidation or into which the Company is merged or the Person which
      acquires by conveyance or transfer, or which leases, the properties and
      assets of the Company substantially as an entirety shall be a corporation,
      partnership or trust, shall be organized and validly existing under the
      laws of the United States of America, any State thereof or the District of
      Columbia and shall expressly assume, by an indenture supplemental hereto,
      executed and delivered to the Trustee, in form satisfactory to the
      Trustee, the due and punctual payment or delivery of money or Warrant
      Property payable or deliverable by the Company with respect to all the
      Securities in accordance with their terms and the performance or
      observance of every covenant of this Indenture on the part of the Company
      to be performed or observed.

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

            (3) the Company has delivered to the Trustee an Officers'
      Certificate and an Opinion of Counsel, each stating that such
      consolidation, merger, conveyance, transfer or lease and, if a
      supplemental indenture is required in connection with such transaction,
      such supplemental indenture comply with this Article and that all
      conditions precedent herein provided for relating to such transaction have
      been complied with.

Section 802. Successor Substituted.

      Upon any consolidation of the Company with, or merger of the Company into,
any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section
801, the successor Person formed by such consolidation or into which the Company
is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor Person
had been named as the Company herein, and thereafter, except in the case of a
lease, the predecessor Person shall be relieved of all obligations and covenants
under this Indenture and the Securities.

                                       45
<PAGE>

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

Section 901. Supplemental Indentures Without Consent of Holders.

      Without the consent of any Holders, the Company, when authorized by a
Board Resolution and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:

            (1) to evidence the succession of another Person to the Company and
      the assumption by any such successor of the covenants of the Company
      herein and in the Securities; or

            (2) to add to the covenants for the benefit of some or all of the
      Holders of all or any series of Securities (and if such covenants are to
      be for the benefit of less than all series of Securities or for the
      benefit of less than all Holders of any series of Securities, stating that
      such covenants are expressly being included solely for the benefit of such
      series or such Holders) or to surrender any right or power herein
      conferred upon the Company; or

            (3) to add any additional Events of Default for the benefit of some
      or all of the Holders of all or any series of Securities (and if such
      additional Events of Default are to be for the benefit of less than all
      series of Securities or for the benefit of less than all Holders of any
      series of Securities, stating that such additional Events of Default are
      expressly being included solely for the benefit of such series or such
      Holders); or

            (4) to add to or change any of the provisions of this Indenture to
      such extent as shall be necessary to permit or facilitate the issuance of
      Securities in bearer form, registrable or not registrable, or to permit or
      facilitate the issuance of Securities in uncertificated form; or

            (5) to add to, change or eliminate any of the provisions of this
      Indenture in respect of one or more series of Securities, provided that
      any such addition, change or elimination (A) shall neither (i) apply to
      any Security of any series created prior to the execution of such
      supplemental indenture and entitled to the benefit of such provision nor
      (ii) modify the rights of the Holder of any such Security with respect to
      such provision or (B) shall become effective only when there is no
      Security described in clause (i) Outstanding; or

            (6) to secure the Securities; or

            (7) to establish the form or terms of Securities of any series as
      permitted by Sections 201 and 301; or

            (8) to evidence and provide for the acceptance of appointment
      hereunder by a successor Trustee with respect to the Securities of one or
      more series 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 611;

                                       46
<PAGE>

            (9) to add to or change any of the provisions of this Indenture with
      respect to any Securities that by their terms may be exercised for Warrant
      Property, in order to permit or facilitate the issuance, payment,
      settlement or exercise of such Securities; or

            (10) to cure any ambiguity, to correct or supplement any provision
      herein which may be defective or inconsistent with any other provision
      herein, or to make any other provisions with respect to matters or
      questions arising under this Indenture, provided that such action pursuant
      to this Clause (10) shall not adversely affect the interests of the
      Holders of Securities of any series in any material respect.

Section 902. Supplemental Indentures With Consent of Holders.

      With the consent of the Holders of not less than a majority in number of
the Outstanding Securities of each series affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by a Board Resolution and the Trustee may enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture; provided, however, that if any
provisions to be changed or eliminated shall affect fewer than all the
Outstanding Securities hereunder or under a particular series under this
Indenture, then, to the extent not inconsistent with the Trust Indenture Act,
any such consent may be given by Holders of not less than a majority in number
of the Outstanding Securities hereunder or under such series affected by such
change or elimination; provided, further, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security affected
thereby,

            (1) change the terms of any Security with respect to the Expiration
      Date, Payment or Settlement Date or exercise price thereof, or reduce the
      amount of money or reduce the amount or change the kind of Warrant
      Property payable or deliverable by the Company upon the exercise thereof
      or any premium payable upon the redemption thereof, or change any Place of
      Payment where, or the coin or currency in which, any Security or any money
      payable or deliverable upon the exercise thereof is payable, or permit the
      Company to redeem any Security if, absent such supplemental indenture, the
      Company would not be permitted to do so, or impair the right to institute
      suit for the enforcement of any such payment or delivery on or after the
      Payment or Settlement Date (or, in the case or redemption, on or after the
      Redemption Date) thereof, or impair the Holder's right to exercise such
      Security on the terms provided therein; or

            (2) if any Security provides that the Holder may require the Company
      to repurchase such Security, impair such Holder's right to require
      repurchase of such Security on the terms provided therein; or

            (3) reduce the percentage in number of the Outstanding Securities of
      any series, the consent of whose Holders is required for any such
      supplemental indenture, or the consent of whose Holders is required for
      any waiver (of compliance with certain provisions of this Indenture or
      certain defaults hereunder and their consequences) provided for in this
      Indenture; or

            (4) modify any of the provisions of this Section, Section 512 or
      Section 1006, except to increase any such percentage or to provide that
      certain other provisions of this Indenture cannot be modified or waived
      without the consent of the Holder of each Outstanding Security affected
      thereby; provided, however, that this clause shall not be

                                       47
<PAGE>

      deemed to require the consent of any Holder with respect to changes in the
      references to "the Trustee" and concomitant changes in this Section and
      Section 1006, or the deletion of this proviso, in accordance with the
      requirements of Sections 611 and 901(8).

A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

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

      After a supplemental indenture under this Section 902 becomes effective,
the Company shall mail to the Trustee a notice briefly describing such
supplemental indenture or a copy of such supplemental indenture and the Trustee
shall mail such notice or supplemental indenture to Holders affected thereby.
Any failure of the Company to mail such notice, or any defect therein, or any
failure of the Company to mail such supplemental indenture, shall not in any way
impair or affect the validity of any such supplemental indenture.

Section 903. Execution of Supplemental Indentures.

      In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 601) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

      Upon the execution of any supplemental indenture under this Article, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

Section 905. Conformity with Trust Indenture Act.

      Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.

Section 906. Reference in Securities to Supplemental Indentures.

      Securities of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company, and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

                                       48
<PAGE>

                                   ARTICLE TEN

                                    COVENANTS

Section 1001. Payment or Delivery of Money or Warrant Property.

      The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay or deliver the money or Warrant
Property payable or deliverable by the Company with respect to the Securities of
that series in accordance with the terms of the Securities and this Indenture
upon satisfaction by the Holders of all conditions precedent to that payment or
delivery.

Section 1002. Maintenance of Office or Agency.

      The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange, where Securities of that series may be
surrendered upon exercise, and where notices and demands to or upon the Company
in respect of the Securities of that series and this Indenture may be served.
The Company will give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands.

      The Company may also from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment for Securities of any series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.

Section 1003. Money and Warrant Property for Payments and Deliveries to be Held
              in Trust.

      If the Company shall at any time act as its own Paying Agent with respect
to any series of Securities, it will, on or before the Payment or Settlement
Date of the Securities of that series, but in the event that the Securities may
be settled by means of cashless exercise, in no event prior to delivery by the
holder of the money or Warrant Property contemplated to exercise such
Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto money or Warrant Property sufficient to pay or deliver the money or
Warrant Property becoming due on such date until such sums or property shall be
paid or delivered to such Persons or otherwise disposed of as herein provided
and will promptly notify the Trustee of its action or failure so to act.

      Whenever the Company shall have one or more Paying Agents for any series
of Securities, it will, on or before the Payment or Settlement Date on any
Securities of that series, deposit with a Paying Agent money or Warrant Property
sufficient to pay or deliver the money or Warrant Property becoming due with
respect to such Securities on such date, such money or Warrant Property to be
held as provided by the Trust Indenture Act, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.

                                       49
<PAGE>

      The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all money or Warrant Property held in trust by such Paying
Agent for payment in respect of the Securities of that series.

      The Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay or deliver, or by
Company Order direct any Paying Agent to pay or deliver, to the Trustee all
money or Warrant Property held in trust by the Company or such Paying Agent,
such money or Warrant Property to be held by the Trustee upon the same trusts as
those upon which such money or Warrant Property were held by the Company or such
Paying Agent; and, upon such payment or delivery by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with
respect to such money or Warrant Property.

      Any money or Warrant Property deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment or delivery of the
amounts due on any Security of any series in accordance with its terms and
remaining unclaimed for two years after such amounts have become due and payable
or deliverable shall be paid or delivered to the Company by the Trustee or such
Paying Agent on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money or property, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in the Borough of Manhattan, The City of New York, notice that such money or
Warrant Property remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be repaid or redelivered to
the Company.

Section 1004. Statement by Officers as to Default.

      The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers thereof
the Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be
in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

Section 1005. Existence.

      Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.

Section 1006. Waiver of Certain Covenants.

      Subject to the provisions of the following paragraph and except as
otherwise specified as contemplated by Section 301 for Securities of such
series, the Company may, with respect to the Securities of any series, omit in
any particular instance to comply with any term, provision or condition

                                       50
<PAGE>

set forth in any covenant provided pursuant to Section 301(17), 901(2) or 901(7)
for the benefit of the Holders of such series or in Section 1005, if before the
time for such compliance the Holders of at least a majority in number of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

      If any term, provision or condition set forth in any covenant referred to
in the preceding paragraph affects fewer than all the Outstanding Securities of
a series, then to the extent not inconsistent with the Trust Indenture Act, any
waiver with respect to any such term, condition or provision may be given by the
Holders of at least a majority in number of the Outstanding Securities of such
series affected by such term, condition or provision on behalf of the Holders of
all the affected Securities of such series.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

Section 1101. Applicability of Article.

      Securities of any series which are redeemable before their Expiration Date
shall be redeemable in accordance with their terms and (except as otherwise
specified as contemplated by Section 301 for such Securities) in accordance with
this Article.

Section 1102. Election to Redeem; Notice to Trustee.

      The election of the Company to redeem any Securities shall be evidenced by
a Board Resolution or in another manner specified as contemplated by Section 301
for such Securities. In case of any redemption at the election of the Company of
less than all the Securities of any series, the Company shall, within the period
specified in or pursuant to the Board Resolution establishing the term of the
Securities to be redeemed or, if no such period is specified at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall
be satisfactory to the Trustee), notify the Trustee of such Redemption Date, and
of the number of Securities of such series to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction.

Section 1103. Selection by Trustee of Securities to Be Redeemed.

      If less than all the Securities of any series are to be redeemed (unless
all the Securities of such series are to be redeemed or unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected within the period specified in or pursuant to the Board Resolution
establishing the term of the Securities to be redeemed or, if no such period is
specified not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate,
provided that the unredeemed portion of any Security shall be in an authorized
denomination (which shall not be less than the minimum authorized denomination)
for such Security. If less than all the Securities of such series are to be
redeemed (unless such redemption affects only a single Security), the particular
Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date

                                       51
<PAGE>

by the Trustee, from the Outstanding Securities of such series not previously
called for redemption in accordance with the preceding sentence.

      If any Security selected for partial redemption is exercised in part
before termination of the exercise right with respect to the portion of the
Security so selected, the exercised portion of such Security shall be deemed (so
far as may be) to be the portion selected for redemption. Securities which have
been exercised during a selection of Securities to be redeemed shall be treated
by the Trustee as Outstanding for the purpose of such selection.

      The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption as aforesaid and, in case of any Securities selected for
partial redemption as aforesaid, the amount thereof to be redeemed.

      The provisions of the two preceding paragraphs shall not apply with
respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

      For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion
of such Securities which has been or is to be redeemed.

Section 1104. Notice of Redemption.

      Notice of redemption shall be given by first-class mail, postage prepaid,
mailed within the period specified in or pursuant to the Board Resolution
establishing the terms of the Securities to be redeemed or, if no such period is
specified, not less than 30 nor more than 60 days prior to the Redemption Date
to each Holder of Securities to be redeemed, at his address appearing in the
Security Register.

      All notices of redemption shall identify the securities to be redeemed and
shall state:

            (1) the Redemption Date;

            (2) the Redemption Price;

            (3) if less than all the Outstanding Securities of any series
      consisting of more than a single Security are to be redeemed, the
      identification (and, in the case of partial redemption of any such
      Securities, the amounts) of the particular Securities to be redeemed and,
      if less than all the Outstanding Securities of any series consisting of a
      single Security are to be redeemed, the amount of the particular Security
      to be redeemed;

            (4) that on the Redemption Date the Redemption Price will become due
      and payable upon each such Security to be redeemed;

            (5) the place or places where each such Security is to be
      surrendered for payment of the Redemption Price;

            (6) if applicable, the terms of exercise, the date on which the
      right to exercise the Security to be redeemed will terminate and the place
      or place where such Securities may be surrendered for exercise; and

                                       52
<PAGE>

            (7) if applicable, the CUSIP numbers of the Securities to be
      redeemed.

      Notice of redemption of Securities to be redeemed at the election of the
Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company and, unless otherwise
specified or contemplated by Section 301, shall be irrevocable.

Section 1105. Deposit of Redemption Price.

      On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount of
money or Warrant Property sufficient to pay the Redemption Price of all the
Securities which are to be redeemed on that date, other than any Securities
called for redemption on that date which have been exercised prior to the date
of such deposit.

      If any Security called for redemption is exercised, any money deposited
with the Trustee or with any Paying Agent or so segregated and held in trust for
the redemption of such Security shall be paid to the Company upon Company
Request or, if then held by the Company, shall be discharged from such trust.

Section 1106. Securities Payable on Redemption Date.

      Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified. Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price.

Section 1107. Securities Redeemed in Part.

      Any Security which is to be redeemed only in part shall be surrendered at
a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security without service charge,
a new Security or Securities of the same series and of like tenor, of any
authorized denomination as requested by such Holder, in number equal to and in
exchange for the unredeemed portion of the Security so surrendered.

                                       53
<PAGE>

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

      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

                                       AMERICAN INTERNATIONAL GROUP, INC.,

                                       By: _______________________________
                                           Name:
                                           Title:

Attest:

_______________________________
Name:
Title:

                                       THE BANK OF NEW YORK

                                       By: _______________________________
                                           Name:
                                           Title:

Attest:

_______________________________
Name:
Title:

                                       54
<PAGE>

STATE OF NEW YORK       )
                        )   ss:
COUNTY OF NEW YORK      )

      On the______day of______, ____, before me personally came _______, to me
known, who, being by me duly sworn, did depose and say that he or she is
_________ of American International Group, Inc., one of the corporations
described in and which executed the foregoing instrument; and that he or she
signed her name thereto by authority of the Board of Directors.

                                       ___________________________________

STATE OF NEW YORK       )
                        )   ss:
COUNTY OF NEW YORK      )

      On the______day of______, ____, before me personally came _______, to me
known, who, being by me duly sworn, did depose and say that he or she
is ______________ of The Bank of New York, one of the corporations described in
and which executed the foregoing instrument; and that he or she signed his name
thereto by like authority.<PAGE>

                                                                    Exhibit 4.16

================================================================================

                              AIG CAPITAL TRUST ( )

                      AMENDED AND RESTATED TRUST AGREEMENT

                                      among

                       AMERICAN INTERNATIONAL GROUP, INC.,
                                   as Sponsor

                              THE BANK OF NEW YORK,
                               as Property Trustee

                        THE BANK OF NEW YORK (DELAWARE),
                               as Delaware Trustee

                                       and

                        THE ADMINISTRATORS NAMED HEREIN,

                         Dated as of ____________, ____

================================================================================

<PAGE>

                              AIG CAPITAL TRUST ( )

              Certain Sections of this Trust Agreement relating to
          Sections 310 through 318 of the Trust Indenture Act of 1939:

Trust Indenture                                                  Trust Agreement
Act Section                                                      Section

<TABLE>
<S>                                                                                                   <C>
Section
310(a)(1)........................................................................................................8.7
(a)(2)...........................................................................................................8.7
(a)(3)...........................................................................................................8.9
(a)(4)..................................................................................................2.7(a)(ii)(E)
(b)..............................................................................................................8.8
311(a)..........................................................................................................8.13
(b).............................................................................................................8.13
312(a)..................................................................................................5.8, 10.10(e)
(b).....................................................................................................5.8, 10.10(e)
(c).....................................................................................................5.8, 10.10(e)
313(a)..........................................................................................................8.15
(b).............................................................................................................8.15
(c).......................................................................................................8.15, 10.8
(d).............................................................................................................8.15
314(a)..........................................................................................................8.16
(b)...................................................................................................Not Applicable
(c)(1)..........................................................................................................8.17
(c)(2)..........................................................................................................8.17
(c)(3)..........................................................................................................8.17
(d)...................................................................................................Not Applicable
(e)........................................................................................................1.1, 8.17
315(a).................................................................................................8.1(d), 8.3(a)
(b)........................................................................................................8.2, 10.8
(c)............................................................................................................8.1(c)
(d)...................................................................................................Not Applicable
(e).........................................................................................................8.1, 8.3
316(a)................................................................................................Not Applicable
(a)(1)(A).............................................................................................Not Applicable
(a)(1)(B)....................................................................................................5.13(b)
(a)(2)................................................................................................Not Applicable
(b).............................................................................................................5.13
(c)..............................................................................................................6.7
317(a)(1).......................................................................................................8.14
(a)(2)..........................................................................................................8.14
(b).............................................................................................................5.10
318(a).........................................................................................................10.10
</TABLE>

Note: This reconciliation and tie sheet shall not, for any purpose, be deemed to
be a part of the Trust Agreement.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                    Page
                                                                                                    ----
<S>                                                                                                 <C>
                                    ARTICLE I

                                  DEFINED TERMS

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

                                   ARTICLE II

                        CONTINUATION OF THE ISSUER TRUST

SECTION 2.1        Name................................................................................9
SECTION 2.2        Office of the Delaware Trustee; Principal Place of Business.........................9
SECTION 2.3        Initial Contribution of Trust Property; Organizational Expenses....................10
SECTION 2.4        Issuance of the Capital Securities.................................................10
SECTION 2.5        Issuance of the Common Securities; Subscription and Purchase of
                   Junior Subordinated Debentures.....................................................10
SECTION 2.6        Continuation of Trust..............................................................11
SECTION 2.7        Authorization to Enter Into Certain Transactions...................................11
SECTION 2.8        Assets of Trust....................................................................15
SECTION 2.9        Title to Trust Property............................................................15

                                   ARTICLE III

                                 PAYMENT ACCOUNT

SECTION 3.1        Payment Account....................................................................15

                                   ARTICLE IV

                            DISTRIBUTIONS; REDEMPTION

SECTION 4.1        Distributions......................................................................15
SECTION 4.2        Redemption.........................................................................17
SECTION 4.3        Subordination of Common Securities.................................................19
SECTION 4.4        Payment Procedures.................................................................19
SECTION 4.5        Tax Returns and Reports............................................................20
SECTION 4.6        Payment of Taxes, Duties, Etc. of the Issuer Trust.................................20
SECTION 4.7        Payments under Indenture or Pursuant to Direct Actions.............................20
SECTION 4.8        Liability of the Holder of the Common Securities...................................20
</TABLE>

                                       -i-
<PAGE>

<TABLE>
<S>                                                                                                   <C>
                                    ARTICLE V

                          TRUST SECURITIES CERTIFICATES

SECTION 5.1        Initial Ownership..................................................................21
SECTION 5.2        The Trust Securities Certificates..................................................21
SECTION 5.3        Execution and Delivery of Trust Securities Certificates............................21
SECTION 5.4        Book-Entry Capital Securities Certificates.........................................22
SECTION 5.5        Registration of Transfer and Exchange Generally; Certain
                   Transfers and Exchanges; Capital Securities Certificates...........................23
SECTION 5.6        Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates.................25
SECTION 5.7        Persons Deemed Holders.............................................................25
SECTION 5.8        Access to List of Holders' Names and Addresses.....................................26
SECTION 5.9        Maintenance of Office or Agency....................................................26
SECTION 5.10       Appointment of Paying Agent........................................................26
SECTION 5.11       Ownership of Common Securities by Sponsor..........................................27
SECTION 5.12       Notices to Depositary..............................................................27
SECTION 5.13       Rights of Holders..................................................................27

                                   ARTICLE VI

                        ACTS OF HOLDERS; MEETINGS; VOTING

SECTION 6.1        Limitations on Holder's Voting Rights..............................................29
SECTION 6.2        Notice of Meetings.................................................................30
SECTION 6.3        Meetings of Holders of the Capital Securities......................................30
SECTION 6.4        Voting Rights......................................................................31
SECTION 6.5        Proxies, etc.......................................................................31
SECTION 6.6        Holder Action by Written Consent...................................................31
SECTION 6.7        Record Date for Voting and Other Purposes..........................................31
SECTION 6.8        Acts of Holders....................................................................32

                                   ARTICLE VII

                         REPRESENTATIONS AND WARRANTIES

SECTION 7.1        Representations and Warranties of the Property Trustee and the Delaware Trustee....33
SECTION 7.2        Representations and Warranties of Sponsor..........................................34

                                  ARTICLE VIII

                     THE ISSUER TRUSTEES; THE ADMINISTRATORS

SECTION 8.1        Certain Duties and Responsibilities................................................34
SECTION 8.2        Certain Notices....................................................................36
SECTION 8.3        Certain Rights of Property Trustee.................................................37
SECTION 8.4        Not Responsible for Recitals or Issuance of Securities.............................38
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<S>                                                                                                   <C>
SECTION 8.5        May Hold Securities................................................................39
SECTION 8.6        Compensation; Indemnity; Fees......................................................39
SECTION 8.7        Corporate Property Trustee Required; Eligibility of Issuer
                   Trustees and Administrators........................................................40
SECTION 8.8        Conflicting Interests..............................................................40
SECTION 8.9        Co-Trustees and Separate Trustee...................................................41
SECTION 8.10       Resignation and Removal of Issuer Trustees; Appointment of Successor...............42
SECTION 8.11       Acceptance of Appointment by Successor.............................................43
SECTION 8.12       Merger, Conversion, Consolidation or Succession to Business........................44
SECTION 8.13       Preferential Collection of Claims Against Sponsor or Issuer Trust..................44
SECTION 8.14       Trustee May File Proofs of Claim...................................................44
SECTION 8.15       Reports by Property Trustee........................................................45
SECTION 8.16       Reports to the Property Trustee....................................................45
SECTION 8.17       Evidence of Compliance with Conditions Precedent...................................45
SECTION 8.18       Number of Issuer Trustees..........................................................46
SECTION 8.19       Delegation of Power................................................................46
SECTION 8.20       Appointment and Removal of Administrators..........................................46

                                   ARTICLE IX

                       TERMINATION, LIQUIDATION AND MERGER

SECTION 9.1        Termination Upon Expiration Date...................................................47
SECTION 9.2        Early Termination..................................................................47
SECTION 9.3        Termination........................................................................47
SECTION 9.4        Liquidation........................................................................47
SECTION 9.5        Mergers, Consolidations, Amalgamations or Replacements of the
                   Issuer Trust.......................................................................49

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

SECTION 10.1       Limitation of Rights of Holders....................................................50
SECTION 10.2       Amendment..........................................................................50
SECTION 10.3       Separability.......................................................................51
SECTION 10.4       Governing Law......................................................................51
SECTION 10.5       Payments Due on Non-Business Day...................................................52
SECTION 10.6       Successors.........................................................................52
SECTION 10.7       Headings...........................................................................52
SECTION 10.8       Reports, Notices and Demands.......................................................52
SECTION 10.9       Agreement Not to Petition..........................................................53
SECTION 10.10      Trust Indenture Act; Conflict with Trust Indenture Act.............................53
SECTION 10.11      Acceptance of Terms of Trust Agreement, Guarantee and Indenture....................54
SECTION 10.12      Counterparts.......................................................................54
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<S>                                                                                                   <C>
SECTION 10.13      Intention of the Parties............................................................54
CERTIFICATE OF TRUST .................................................................................A-1
FORM OF CERTIFICATE DEPOSITORY AGREEMENT .............................................................B-1
FORM OF COMMON SECURITIES CERTIFICATE ................................................................C-1
FORM OF EXPENSE AGREEMENT ............................................................................D-1
FORM OF CAPITAL SECURITIES CERTIFICATE ...............................................................E-1
</TABLE>

                                      -iv-
<PAGE>

                                    AGREEMENT

            Amended and Restated Trust Agreement, dated as of ___________, ____,
by and among (i) American International Group, Inc., a Delaware corporation
(including any successors or assigns, the "Sponsor" or "AIG"), (ii) The Bank of
New York, a New York banking corporation, as property trustee, (in such
capacity, the "Property Trustee" and, in its separate corporate authority and
not in its capacity as Property Trustee, "The Bank of New York"), (iii) The Bank
of New York (Delaware), a Delaware banking corporation, as Delaware trustee (the
"Delaware Trustee") (the Property Trustee and the Delaware Trustee are referred
to collectively herein as the "Issuer Trustees"), (iv) three individuals
selected by the holders of the Common Securities (as defined herein) to act as
administrators with respect to the Issuer Trust, as hereinafter defined (the
"Administrators") and (v) the several Holders, as hereinafter defined.

                              W I T N E S S E T H:

            WHEREAS, the Sponsor and the Issuer Trustees have heretofore duly
declared and established a statutory trust under the Delaware Statutory Trust
Act pursuant to a certain Trust Agreement, dated as of June 10, 2003 (the
"Original Trust Agreement'), and by the execution and filing by the Issuer
Trustees with the Secretary of State of the State of Delaware a Certificate of
Trust (the "Certificate of Trust") on June 10, 2003, which Certificate of Trust
is attached as Exhibit A; and

            WHEREAS, the Sponsor and the Issuer Trustees desire to amend and
restate the Original Trust Agreement in its entirety as set forth herein to
provide for, among other things, (i) the issuance of the Common Securities by
the Issuer Trust to the Sponsor, (ii) the issuance and sale of the Capital
Securities by the Issuer Trust pursuant to the Underwriting Agreement, (iii) the
acquisition by the Issuer Trust from the Sponsor of all of the right, title and
interest in the Junior Subordinated Debentures, and (iv) the appointment of the
Administrators.

            NOW, THEREFORE, in consideration of the agreements and obligations
set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each party, for the benefit of the
other parties and for the benefit of the Holders, hereby amends and restates the
Original Trust Agreement in its entirety and agrees, intending to be legally
bound, as follows:

                                   ARTICLE I

                                  DEFINED TERMS

      SECTION 1.1 Definitions. For all purposes of this Trust Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

            (a) The terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;

            (b) All other terms used herein that are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;

<PAGE>

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

            (d) Unless the context otherwise requires, any reference to an
"Article", "Section" or "Exhibit" refers to an Article, Section or Exhibit, as
the case may be, of this Trust Agreement; and

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

            "ACT" has the meaning specified in Section 6.8.

            "ADDITIONAL AMOUNT" means, with respect to Trust Securities of a
given Liquidation Amount and/or a given period, the amount of Additional
Interest (as defined in the Indenture) paid by the Sponsor on a Like Amount of
Junior Subordinated Debentures for such period.

            "ADDITIONAL INTEREST" has the meaning specified in the Indenture.

            "ADDITIONAL SUMS" has the meaning specified in the Indenture.

            "ADMINISTRATORS" means each Person appointed in accordance with
Section 8.20 solely in such Person's capacity as Administrator of the Issuer
Trust heretofore formed and continued hereunder and not in such Person's
individual capacity, or any successor Administrator appointed as herein
provided; with the initial Administrators being ________________,
________________ and _________________.

            "AFFILIATE" of any specified Person means any other Person directly
or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

            "APPLICABLE 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.

            "BANKRUPTCY EVENT" means, with respect to any Person:

            (a) the entry by a court having jurisdiction in the premises of (A)
a decree or order for relief in respect of such Person in an involuntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order adjudging such
Person bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of such
Person under any applicable Federal or State law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of such Person or of any substantial part of its property, or ordering the
winding up or liquidation of its affairs, and the continuance of any

                                      -2-
<PAGE>

such decree or order for relief or any such other decree or order unstayed and
in effect for a period of 60 consecutive days; or

            (b) the commencement by such Person of a voluntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of such Person in an involuntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any applicable Federal
or State law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of such Person or of
any substantial part of its property, or the making by it of an assignment for
the benefit of creditors, or the admission by it in writing of its inability to
pay its debts generally as they become due, or the taking of corporate action by
such Person in furtherance of any such action.

            "BANKRUPTCY LAWS" has the meaning specified in Section 10.9.

            "BOOK-ENTRY CAPITAL SECURITIES CERTIFICATE" means a Capital
Securities Certificate evidencing ownership of Book-Entry Capital Securities.

            "BOOK-ENTRY CAPITAL SECURITY" means a Capital Security, the
ownership and transfers of which shall be made through book entries by a
Depositary as described in Section 5.4.

            "BUSINESS DAY" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in The City of New York
are authorized or required by law or executive order to close.

            "CAPITAL SECURITIES CERTIFICATE" means a certificate evidencing
ownership of Capital Securities, substantially in the form attached as Exhibit
E.

            "CAPITAL SECURITY" means a preferred undivided beneficial interest
in the assets of the Issuer Trust, having a Liquidation Amount of $25 and having
the rights provided therefor in this Trust Agreement, including the right to
receive Distributions and a Liquidation Distribution as provided herein.

            "CERTIFICATE DEPOSITORY AGREEMENT" means the agreement among the
Issuer Trust, the Sponsor and DTC, as the initial Depositary, dated as of the
Closing Date, substantially in the form attached as Exhibit B, as the same may
be amended and supplemented from time to time.

            "CERTIFICATE OF TRUST" has the meaning specified in the recitals to
this Trust Agreement.

            "CLOSING DATE" means the first Time of Delivery.

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

            "COMMISSION" means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or, if at any time
after the execution of this

                                      -3-
<PAGE>

instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

            "COMMON SECURITIES CERTIFICATE" means a certificate evidencing
ownership of Common Securities, substantially in the form attached as Exhibit C.

            "COMMON SECURITIES SUBSCRIPTION AGREEMENT" means the common
securities subscription agreement between the Issuer Trust and the Sponsor
dated______.

            "COMMON SECURITY" means a common undivided beneficial interest in
the assets of the Issuer Trust, having a Liquidation Amount of $25 and having
the rights provided therefor in this Trust Agreement, including the right to
receive Distributions and a Liquidation Distribution as provided herein.

            "CORPORATE TRUST OFFICE" means (i) when used with respect to the
Property Trustee, the principal office of the Property Trustee located in New
York, which at the time of the execution of this Trust Agreement is located at
101 Barclay Street, New York, New York 10286; Attention: Corporate Trust
Administration, and (ii) when used with respect to the Debt Securities Trustee,
the principal office of the Debt Securities Trustee located in the City of New
York, which at the time of the execution of this Trust Agreement is located at
101 Barclay Street, Floor 21 West, New York, New York 10286; Attention:
Corporate Trust Administration.

            "DEBENTURE EVENT OF DEFAULT" means an "Event of Default" as defined
in the Indenture.

            "DEBENTURE REDEMPTION DATE" means, with respect to any Junior
Subordinated Debentures to be redeemed under the Indenture, the date fixed for
redemption of such Junior Subordinated Debentures under the Indenture.

            "DEBT SECURITIES TRUSTEE" means The Bank of New York, a New York
banking corporation, as Trustee under the Indenture and any successor thereto.

            "DEFINITIVE CAPITAL SECURITIES CERTIFICATES" means either or both
(as the context requires) of (i) Capital Securities Certificates issued as
Book-Entry Capital Securities Certificates as provided in Section 5.2 or 5.4,
and (ii) Capital Securities Certificates issued in certificated, fully
registered form as provided in Section 5.2, 5.4 or 5.5.

            "DELAWARE STATUTORY TRUST ACT" means Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code Section 3801, et seq., as it may be amended from
time to time.

            "DELAWARE TRUSTEE" means the Person identified as the "Delaware
Trustee" in the preamble to this Trust Agreement solely in its capacity as
Delaware Trustee of the Issuer Trust heretofore formed and continued hereunder
and not in its individual capacity, or its successor in interest in such
capacity, or any successor Delaware Trustee appointed as herein provided.

            "DEPOSITARY" means, with respect to Book-Entry Capital Securities,
any Person that is designated to act as Depositary. DTC shall be the initial
Depositary.

                                      -4-
<PAGE>

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

            "DIRECT ACTION" has the meaning specified in Section 5.13(c).

            "DISTRIBUTION DATE" has the meaning specified in Section 4.1(a).

            "DISTRIBUTIONS" means amounts payable in respect of the Trust
Securities as provided in Section 4.1.

            "DTC" means The Depository Trust Company.

            "EARLY TERMINATION EVENT" has the meaning specified in Section 9.2.

            "EVENT OF DEFAULT" means any one of the following events (whatever
the reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

            (a) the occurrence of a Debenture Event of Default; or

            (b) default by the Issuer Trust in the payment of any Distribution
when it becomes due and payable, and continuation of such default for a period
of 30 days; or

            (c) default by the Issuer Trust in the payment of any Redemption
Price of any Trust Security when it becomes due and payable and continuance of
such default for a period of five days; or

            (d) the occurrence of any Bankruptcy Event with respect to all or
substantially all of the property of the Property Trustee if a successor
Property Trustee has not been appointed within a period of 90 days thereof.

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

            "EXPENSE AGREEMENT" means the Agreement as to Expenses and
Liabilities, dated as of the Closing Date, between the Sponsor and the Issuer
Trust, substantially in the form attached as Exhibit D, as amended from time to
time.

            "EXPIRATION DATE" has the meaning specified in Section 9.1.

            "EXTENSION PERIOD" has the meaning specified in Section 4.1(a)(iii).

            "GUARANTEE AGREEMENT" means the Guarantee Agreement, dated as of
____, made for the benefit of the holders of the Capital Securities, as amended
from time to time.

                                      -5-
<PAGE>

            "HOLDER" means a Person in whose name a Trust Security or Trust
Securities is or are registered in the Securities Register; any such Person
shall be deemed to be a beneficial owner within the meaning of the Delaware
Statutory Trust Act.

            "INDENTURE" means the Junior Subordinated Debt Indenture, dated as
of _________, _____, between the Sponsor and the Debt Securities Trustee, as
supplemented by the First Supplemental Junior Subordinated Debt Indenture, dated
as of ______________, _________ (and as may be further modified, amended or
supplemented from time to time) relating to the issuance of the Junior
Subordinated Debentures.

            "INVESTMENT COMPANY ACT" means the Investment Company Act of 1940 or
any successor statute thereto, in each case, as amended from time to time.

            "ISSUER TRUST" means AIG Capital Trust ( ).

            "ISSUER TRUSTEES" has the meaning specified in the preamble to this
Trust Agreement.

            "JUNIOR SUBORDINATED DEBENTURES" means $ _________ aggregate
principal amount of the Sponsor's [__%] Junior Subordinated Debentures Due
_________ issued pursuant to the Indenture.

            "JUNIOR SUBORDINATED DEBENTURE SUBSCRIPTION AGREEMENT" means the
junior subordinated debenture subscription agreement between the Issuer Trust
and the Sponsor dated ___________,_________.

            "LIEN" means any lien, pledge, charge, encumbrance, mortgage, deed
of trust, adverse ownership interest, hypothecation, assignment, security
interest or preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever.

            "LIKE AMOUNT" means (a) with respect to a redemption of any Trust
Securities, Trust Securities having a Liquidation Amount equal to that portion
of the principal amount of Junior Subordinated Debentures to be
contemporaneously redeemed in accordance with the Indenture, the proceeds of
which will be used to pay the Redemption Price of such Trust Securities and (b)
with respect to a distribution of Junior Subordinated Debentures to Holders of
Trust Securities in connection with a dissolution, liquidation, or winding up of
the Issuer Trust, Junior Subordinated Debentures having a principal amount equal
to the Liquidation Amount of the Trust Securities of the Holder to whom such
Junior Subordinated Debentures are distributed.

            "LIQUIDATION AMOUNT" means the stated amount of $25 per Trust
Security.

            "LIQUIDATION DATE" means the date of the dissolution, liquidation,
winding-up or termination of the Issuer Trust pursuant to Section 9.4.

            "LIQUIDATION DISTRIBUTION" has the meaning specified in Section
9.4(d).

            "MAJORITY IN LIQUIDATION AMOUNT OF THE CAPITAL SECURITIES" means
Capital Securities representing 50% or more of the Liquidation Amount of all
then Outstanding Capital Securities.

             "OFFICERS' CERTIFICATE" means a certificate signed by the Chairman,
a Vice Chairman, the President or a Vice President, and by

                                      -6-
<PAGE>

the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Sponsor, and delivered to the Property Trustee. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Trust Agreement shall include:

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

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

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

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

            "OPINION OF COUNSEL" means a written opinion of counsel who may be
counsel for or an officer or employee of the Sponsor or any Affiliate of the
Sponsor and who shall be acceptable to the Administrators.

            "ORIGINAL TRUST AGREEMENT" has the meaning specified in the preamble
to this Trust Agreement.

            "OUTSTANDING," when used with respect to Trust Securities, means, as
of the date of determination, all Trust Securities theretofore executed and
delivered under this Trust Agreement, except:

            (a) Trust Securities theretofore canceled by the Property Trustee or
delivered to the Property Trustee for cancellation;

            (b) Trust Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Property Trustee or any
Paying Agent; provided, that if such Trust Securities are to be redeemed, notice
of such redemption has been duly given pursuant to this Trust Agreement; and

            (c) Trust Securities that have been paid or in exchange for or in
lieu of which other Trust Securities have been executed and delivered pursuant
to Sections 5.4, 5.5, 5.6 and 5.11;

provided, however, that in determining whether the Holders of the requisite
Liquidation Amount of the Outstanding Capital Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, Capital
Securities owned by the Sponsor, any Administrator or any Affiliate of the
Sponsor shall be disregarded and deemed not to be Outstanding. In determining
whether an Issuer Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Capital
Securities that such Issuer Trustee knows to be so owned shall be so
disregarded. The foregoing shall not apply at any time when all of the
outstanding Capital Securities are owned by the Sponsor, one or more of the
Administrators and/or any such Affiliate. Capital Securities so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the

                                      -7-
<PAGE>

satisfaction of the Administrators the pledgee's right so to act with respect to
such Capital Securities and that the pledgee is not the Sponsor or any Affiliate
of the Sponsor.

            "OWNER" means each Person who is the beneficial owner of Book-Entry
Capital Securities as reflected in the records of the Depositary or Depositary
Participant (in accordance with the rules of such Depositary).

            "PAYING AGENT" means any paying agent or co-paying agent appointed
pursuant to Section 5.10 and shall initially be the Property Trustee.

            "PAYMENT ACCOUNT" means a segregated non-interest-bearing corporate
trust account maintained by or on behalf of the Property Trustee for the benefit
of the Holders in which all amounts paid in respect of the Junior Subordinated
Debentures will be held and from which the Property Trustee, through the Paying
Agent, shall make payments to the Holders in accordance with Sections 4.1 and
4.2.

            "PERSON" means any individual, corporation, partnership, joint
venture, trust, unincorporated organization or government or any agency or
political subdivision thereof.

            "PROPERTY TRUSTEE" means the Person identified as the "Property
Trustee" in the preamble to this Trust Agreement solely in its capacity as
Property Trustee of the Issuer Trust heretofore formed and continued hereunder
and not in its individual capacity, or its successor in interest in such
capacity, or any successor Property Trustee appointed as herein provided.

            "REDEMPTION DATE" means, with respect to any Trust Security to be
redeemed, the date fixed for such redemption by or pursuant to this Trust
Agreement; provided that each Debenture Redemption Date and the stated maturity
of the Junior Subordinated Debentures shall be a Redemption Date and the stated
maturity for a Like Amount of Trust Securities.

            "REDEMPTION PRICE" means, with respect to any Trust Security, the
Liquidation Amount of such Trust Security, plus accumulated and unpaid
Distributions to the Redemption Date, plus the related amount of the premium, if
any, paid by the Sponsor upon the concurrent redemption of a Like Amount of
Junior Subordinated Debentures.

            "SECURITIES ACT" means the Securities Act of 1933, as amended, and
any successor statute thereto, in each case as amended from time to time.

            "SECURITIES REGISTER" and "SECURITIES REGISTRAR" have the respective
meanings specified in Section 5.5.

            "SPONSOR" has the meaning specified in the preamble to this Trust
Agreement.

            "SUCCESSOR CAPITAL SECURITIES" has the meaning specified in Section
9.5.

            "TIME OF DELIVERY" has the meaning specified in the Underwriting
Agreement.

            "TRUST AGREEMENT" means this Amended and Restated Trust Agreement,
as the same may be modified, amended or supplemented in accordance with the
applicable provisions hereof, including (i) all Exhibits hereto and (ii) for all
purposes of this Amended and Restated Trust

                                      -8-
<PAGE>

Agreement and any such modification, amendment or supplement, the provisions of
the Trust Indenture Act that are deemed to be a part of and govern this Amended
and Restated Trust Agreement and any such modification, amendment or supplement,
respectively.

            "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939 as in
force at the date as of which this instrument was executed; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
"Trust Indenture Act" means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.

            "TRUST PROPERTY" means (a) the Junior Subordinated Debentures, (b)
any cash on deposit in, or owing to, the Payment 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 Property Trustee pursuant to the
trusts of this Trust Agreement.

            "TRUST SECURITIES CERTIFICATE" means any one of the Common
Securities Certificates or the Capital Securities Certificates.

            "TRUST SECURITY" means any one of the Common Securities or the
Capital Securities.

            "UNDERWRITERS" has the meaning specified in the Underwriting
Agreement.

            "UNDERWRITING AGREEMENT" means the Underwriting Agreement, dated as
of _________, _____, among the Issuer Trust, the Sponsor and the Underwriters,
as the same may be amended from time to time.

                                   ARTICLE II

                        CONTINUATION OF THE ISSUER TRUST

      SECTION 2.1 Name.

            The trust established under the Original Trust Agreement and
continued hereby shall be known as "AIG Capital Trust ( )", as such name may be
modified from time to time by the Administrators following written notice to the
Holders of Trust Securities and the Issuer Trustees, in which name the
Administrators and the Issuer Trustees may engage in the transactions
contemplated hereby, conduct the business of the Issuer Trust, make and execute
contracts and other instruments on behalf of the Issuer Trust and sue and be
sued.

      SECTION 2.2. Office of the Delaware Trustee; Principal Place of Business.

            The address of the Delaware Trustee in the State of Delaware is
White Clay Center, Route 273, Newark, DE 19711, Attention: Corporate Trust
Administration, or such other address in the State of Delaware as the Delaware
Trustee may designate by written notice to the Holders, the Property Trustee,
the Administrators and the Sponsor. The principal executive office of the Issuer
Trust is in care of American International Group, Inc., 70 Pine Street, New
York, NY 10270 Attention: Secretary.

                                       -9-
<PAGE>

      SECTION 2.3 Initial Contribution of Trust Property; Organizational
Expenses.

            The Property Trustee acknowledges receipt in trust from the Sponsor
in connection with the Original Trust Agreement of the sum of $10, which
constituted the initial Trust Property. The Sponsor shall pay all organizational
expenses of the Issuer Trust as they arise or shall, upon request of any Issuer
Trustee or Administrator, promptly reimburse such Issuer Trustee or
Administrator for any such expenses paid by such Issuer Trustee or
Administrator. The Sponsor shall make no claim upon the Trust Property for the
payment of such expenses.

      SECTION 2.4 Issuance of the Capital Securities.

            The Sponsor, both on its own behalf and on behalf of the Issuer
Trust pursuant to the Original Trust Agreement, executed and delivered the
Underwriting Agreement. Contemporaneously with the execution and delivery of
this Trust Agreement, an Administrator, on behalf of the Issuer Trust, shall
execute, manually or by facsimile, in accordance with Sections 5.3 and 8.9(a)
and the Property Trustee shall authenticate in accordance with Sections 5.3 and
8.9(a) and deliver to the Underwriters, Capital Securities Certificates,
registered in the names requested by the Underwriters, in an aggregate amount of
[__] Capital Securities having an aggregate Liquidation Amount of $[__] against
receipt by the Property Trustee of the aggregate purchase price of such Capital
Securities of $[__].

            If the Underwriters exercise their option, if any, to purchase
additional Capital Securities pursuant to the terms of the Underwriting
Agreement, then an Administrator, on behalf of the Issuer Trust, shall execute,
manually or by facsimile, in accordance with Sections 5.3 and 8.9(a) and the
Property Trustee shall authenticate in accordance with Section 5.3 and 8.9(a)
and deliver to the Underwriters, additional Capital Securities Certificates,
registered in the names requested by the Underwriters, in an aggregate amount of
up to [__] additional Capital Securities having an aggregate Liquidation Amount
of up to $[__], against receipt by the Property Trustee of the aggregate
purchase price of such additional Capital Securities of up to $[__].

      SECTION 2.5 Issuance of the Common Securities; Subscription and Purchase
of Junior Subordinated Debentures.

            Contemporaneously with the execution and delivery of this Trust
Agreement, an Administrator, on behalf of the Issuer Trust, shall execute or
cause to be executed in accordance with Sections 5.3 and 8.9(a) and the Property
Trustee shall deliver to the Sponsor Common Securities Certificates, registered
in the name of the Sponsor, in an aggregate amount of [__] Common Securities
having an aggregate Liquidation Amount of $[__] against receipt of the aggregate
purchase price of such Common Securities of $[__] by the Property Trustee.
Contemporaneously therewith, an Administrator, on behalf of the Issuer Trust,
shall subscribe for and purchase from the Sponsor the Junior Subordinated
Debentures, registered in the name of the Property Trustee on behalf of Issuer
Trust and having an aggregate principal amount equal to $[__] and, in
satisfaction of the purchase price for such Junior Subordinated Debentures, the
Property Trustee, on behalf of the Issuer Trust, shall deliver to the Sponsor
the sum of $[__] (being the sum of the amounts delivered to the Property Trustee
pursuant to (i) the second sentence of Section 2.4, and (ii) the first sentence
of the second paragraph of this Section 2.5) and receive on behalf of the Issuer
Trust such Junior Subordinated Debentures.

                                      -10-
<PAGE>

            If the Underwriters exercise their option, if any, to purchase
additional Capital Securities pursuant to the terms of the Underwriting
Agreement, then an Administrator, on behalf of the Issuer Trust, shall execute
or cause to be executed in accordance with Sections 5.3 and 8.9(a) and deliver
to the Sponsor, additional Common Securities Certificates, registered in the
name of the Sponsor, in an aggregate amount of up to [__] additional Common
Securities having an aggregate Liquidation Amount of up to $[__] against receipt
by the Property Trustee of the aggregate purchase price of up to $[__].
Contemporaneously therewith, an Administrator, on behalf of the Issuer Trust,
shall subscribe for and purchase from the Sponsor the Junior Subordinated
Debentures, registered in the name of the Property Trustee on behalf of Issuer
Trust and having an aggregate principal amount of up to $[__] and, in
satisfaction of the purchase price for such Junior Subordinated Debentures, the
Property Trustee, on behalf of the Issuer Trust, shall deliver to the Sponsor an
aggregate amount equal to the sum of the amounts delivered to the Property
Trustee pursuant to (i) the second paragraph of Section 2.4, and (ii) the first
sentence of this Section 2.5, and receive on behalf of the Issuer Trust such
Junior Subordinated Debentures.

      SECTION 2.6 Continuation of Trust.

            The exclusive purposes and functions of the Issuer Trust are to (a)
issue and sell Trust Securities and use the proceeds from such sale to acquire
the Junior Subordinated Debentures, and (b) engage in only those other
activities necessary or incidental thereto, including, without limitation, the
execution and delivery of the Expense Agreement, the Common Securities
Subscription Agreement and the Junior Subordinated Debenture Subscription
Agreement. The Sponsor hereby reaffirms the appointment of the Delaware Trustee
and the Property Trustee as trustees of the Issuer Trust, to have all the
rights, powers and duties to the extent set forth herein, and the Issuer
Trustees hereby accept such appointment. The Property Trustee hereby declares
that it will hold the Trust Property in trust upon and subject to the conditions
set forth herein for the benefit of the Issuer Trust and the Holders. The
Sponsor hereby appoints the Administrators, with such Administrators having all
rights, powers and duties set forth herein and in accordance with applicable law
with respect to accomplishing, the purposes of the Issuer Trust, and the
Administrators hereby accept such appointment, provided, however, that it is the
intent of the parties hereto that such Administrators shall not be trustees with
respect to the Issuer Trust and this Trust Agreement shall be construed in a
manner consistent with such intent. The Property Trustee shall have the right
and power to perform those duties assigned to the Administrators. The Delaware
Trustee shall not be entitled to exercise any powers, nor shall the Delaware
Trustee have any of the duties and responsibilities, of the Property Trustee or
the Administrators set forth herein. The Delaware Trustee shall be one of the
trustees of the Issuer Trust for the sole and limited purpose of fulfilling the
requirements of Section 3807 of the Delaware Statutory Trust Act and for taking
such actions as are required to be taken by a Delaware trustee under the
Delaware Statutory Trust Act.

      SECTION 2.7 Authorization to Enter Into Certain Transactions.

            (a) The Issuer Trustees and the Administrators shall conduct the
affairs of the Issuer Trust in accordance with the terms of this Trust
Agreement. Subject to the limitations set forth in paragraph (b) of this Section
2.7, and in accordance with the following provisions (i) and (ii), the Issuer
Trustees and the Administrators shall have the authority to enter into all
transactions and agreements determined by the Issuer Trustees and the
Administrators, respectively, to be

                                      -11-
<PAGE>

appropriate in exercising the authority, express or implied, otherwise granted
to the Issuer Trustees and the Administrators, respectively, under this Trust
Agreement, and to perform all acts in furtherance thereof, including, without
limitation, the following:

                  (i) Each Administrator, acting singly or jointly, is
            authorized, on behalf of the Issuer Trust, to:

                        (A) comply with the Underwriting Agreement regarding the
                  issuance and sale of the Capital Securities;

                        (B) assist in compliance with the Securities Act,
                  applicable state securities or blue sky laws, and the Trust
                  Indenture Act;

                        (C) assist in the listing of the Capital Securities upon
                  such securities exchange or exchanges as shall be determined
                  by the Sponsor, in its sole discretion, with the registration
                  of the Capital Securities under the Exchange Act, if required,
                  and the preparation and filing of all periodic and other
                  reports and other documents pursuant to the foregoing;

                        (D) execute the Trust Securities on behalf of the Issuer
                  Trust in accordance with this Trust Agreement;

                        (E) execute and deliver closing certificates, if any,
                  and an application for a taxpayer identification number for
                  the Issuer Trust;

                        (F) execute on behalf of the Issuer Trust any documents
                  that the Administrators have the power to execute pursuant to
                  this Trust Agreement, including without limitation a Junior
                  Subordinated Debenture Subscription Agreement, a Common
                  Securities Subscription Agreement, a Certificate Depositary
                  Agreement and an Expense Agreement, all by and between the
                  Issuer Trust and the Sponsor;

                        (G) execute and file with the Commission, at such time
                  as determined by the Sponsor, any registration statement,
                  including amendments thereto; and

                        (H) take any action incidental to the foregoing as
                  necessary or advisable to give effect to the terms of this
                  Trust Agreement (and any actions taken in furtherance of the
                  above prior to the date of this Trust Agreement by the
                  Administrators are hereby ratified and confirmed in all
                  respects).

                  (ii) The Property Trustee shall have the power and authority
            to act on behalf of the Issuer Trust with respect to the following
            matters:

                        (A) the establishment of the Payment Account;

                        (B) the receipt of the Junior Subordinated Debentures;

                                      -12-
<PAGE>

                        (C) the receipt and collection of interest, principal
                  and any other payments made in respect of the Junior
                  Subordinated Debentures and the holding of such amounts in the
                  Payment Account;

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

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

                        (F) the sending of notices of default and other
                  information regarding the Trust Securities and the Junior
                  Subordinated Debentures to the Holders in accordance with this
                  Trust Agreement and the Indenture;

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

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

                        (I) perform the duties of the Property Trustee set forth
                  in this Trust Agreement; and

                        (J) after an Event of Default (other than under
                  paragraph (d) of the definition of such term if such Event of
                  Default is by or with respect to the Property Trustee), comply
                  with the provisions of this Trust Agreement and take any
                  action to give effect to the terms of this Trust Agreement and
                  protect and conserve the Trust Property for the benefit of the
                  Holders (without consideration of the effect of any such
                  action on any particular Holder); and provided, however, that
                  nothing in this Section 2.7(a) (ii) shall require the Property
                  Trustee to take any action that is not otherwise required in
                  this Trust Agreement.

            (b) So long as this Trust Agreement remains in effect, the Issuer
Trust (or the Issuer Trustees or Administrators acting on behalf of the Issuer
Trust) shall not undertake any business, activities or transaction except as
expressly provided herein or contemplated hereby. In particular, (x) the Issuer
Trustees and (y) the Administrators shall not and shall not cause the Issuer
Trust to (i) acquire any investments or engage in any activities not authorized
by this Trust Agreement, (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 reasonably be expected to cause the Issuer Trust to become
taxable as a corporation 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 Property Trustee shall 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 Issuer Trust or the Holders in their capacity as Holders.

                                      -13-
<PAGE>

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

                  (i) the preparation and filing by the Issuer Trust with the
            Commission and the execution on behalf of the Issuer Trust of a
            registration statement on the appropriate form and a prospectus in
            relation to the Capital Securities, including any amendments or
            supplements thereto and the taking of any action necessary or
            desirable to sell the Capital Securities in a transaction or a
            series of transactions pursuant thereto;

                  (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 taking of any and all actions
            necessary, desirable or appropriate in connection therewith, other
            than actions that must be taken by or on behalf of the Issuer Trust,
            and advice to the Issuer Trustees of actions that they must take on
            behalf of the Issuer Trust, and the preparation for execution and
            filing of any documents to be executed and filed by the Issuer Trust
            or on behalf of the Issuer 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;

                  (iii) the preparation for filing by the Issuer Trust and
            execution on behalf of the Issuer Trust of an application to the New
            York Stock Exchange, or any other national stock exchange or Nasdaq
            for listing if, in its sole discretion, it decides to list the
            Capital Securities;

                  (iv) the negotiation of the terms of, and the execution and
            delivery of, the Underwriting Agreement providing for the sale of
            the Capital Securities;

                  (v) compliance with the listing requirements of the Capital
            Securities upon such securities exchange or exchanges or Nasdaq as
            shall be determined by the Sponsor, in its sole discretion, the
            registration of the Capital Securities under the Exchange Act, and
            the preparation and filing of all periodic and other reports and
            other documents pursuant to the foregoing; and

                  (vi) 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 and the Issuer Trustees are authorized and directed to conduct
the affairs of the Issuer Trust and to operate the Issuer Trust so that the
Issuer Trust will not be deemed to be an "investment company" required to be
registered under the Investment Company Act, and will not be taxable as a
corporation for United States federal income tax purposes and so that the Junior
Subordinated Debentures will be treated as indebtedness of the Sponsor for
United States federal income tax purposes. In this connection, the
Administrators, the Property Trustee and the Holder of Common Securities are
authorized to take any action, not inconsistent with applicable law, the
Certificate of Trust or this Trust Agreement, that the Administrators, the
Property Trustee or Holder of Common Securities determine in their discretion to
be necessary or desirable for such

                                      -14-
<PAGE>

purposes, as long as such action does not adversely affect in any material
respect the interests of the Holders of the Outstanding Capital Securities. In
no event shall the Administrators or the Issuer Trustees be liable to the Issuer
Trust or the Holders for any failure to comply with this section that results
from a change in law or regulation or in the interpretation thereof.

      SECTION 2.8 Assets of Trust.

            The assets of the Issuer Trust shall consist solely of the Trust
Property.

      SECTION 2.9 Title to Trust Property.

            Legal title to all Trust Property shall be vested at all times in
the Property Trustee (in its capacity as such) and shall be held and
administered by the Property Trustee in trust for the benefit of the Issuer
Trust and the Holders in accordance with this Trust Agreement. The Holders shall
not have legal title to any part of the Trust Property, but shall have an
undivided beneficial interest in the Trust Property.

                                  ARTICLE III

                                 PAYMENT ACCOUNT

      SECTION 3.1 Payment Account.

            (a) On or prior to the Closing Date, the Property Trustee shall
establish the Payment Account. The Property Trustee and its agents shall have
exclusive control and sole right of withdrawal with respect to the Payment
Account for the purpose of making deposits in and withdrawals from the Payment
Account in accordance with this Trust Agreement. All monies and other property
deposited or held from time to time in the Payment Account shall be held by the
Property Trustee in the Payment Account for the exclusive benefit of the Holders
and for distribution as herein provided, including (and subject to) any priority
of payments provided for herein.

            (b) The Property Trustee shall deposit (or cause to be deposited) in
the Payment Account, promptly upon receipt, all payments of principal of or
interest on, and any other payments or proceeds with respect to, the Junior
Subordinated Debentures. Amounts held in the Payment Account shall not be
invested by the Property Trustee pending distribution thereof.

                                   ARTICLE IV

                            DISTRIBUTIONS; REDEMPTION

      SECTION 4.1 Distributions.

            (a) The Trust Securities represent undivided beneficial interests in
the Trust Property, and Distributions (including any Additional Amounts) will be
made on the Trust Securities at the rate and on the dates that payments of
interest (including any Additional Interest, as defined in the Indenture) are
made on the Junior Subordinated Debentures. Accordingly:

                                      -15-
<PAGE>

                  (i) Distributions on the Trust Securities shall be cumulative
            and will accumulate whether or not there are funds of the Issuer
            Trust available for the payment of Distributions. Distributions
            shall accumulate from __________, _____, and, except in the event
            (and to the extent) that the Sponsor exercises its right to defer
            the payment of interest on the Junior Subordinated Debentures
            pursuant to the Indenture, shall be payable in arrears on
            ___________ of each year, commencing on __________, _____. If any
            date on which a Distribution is otherwise payable on the Trust
            Securities is not a Business Day, then the payment of such
            Distribution shall be made on the next succeeding day that is a
            Business Day (and without any interest or other payment in respect
            of any such delay), except that, if such Business Day is in the next
            succeeding calendar year, the payment of such Distribution shall be
            made on the immediately preceding Business Day, in each case with
            the same force and effect as if made on the date on which such
            payment was originally payable (each date on which Distributions are
            payable in accordance with this Section 4.1(a), a "Distribution
            Date").

                  (ii) The Trust Securities shall be entitled to Distributions
            payable at a rate of _____% per annum of the Liquidation Amount of
            the Trust Securities. The amount of Distributions payable for any
            period less than a full Distribution period shall be computed on the
            basis of a 360-day year of twelve 30-day months and the actual
            number of days elapsed in a partial month in a period. Distributions
            payable for each full Distribution period will be computed by
            dividing the rate per annum by _____. The amount of Distributions
            payable for any period shall include any Additional Amounts in
            respect of such period.

                  (iii) So long as no Debenture Event of Default with respect to
            the Junior Subordinated Debentures under Section 501(1) or 501(2) of
            the Indenture has occurred and is continuing, the Sponsor has the
            right under the Indenture to defer the payment of interest on the
            Junior Subordinated Debentures at any time and from time to time for
            a period not exceeding ___ consecutive quarterly periods (an
            "Extension Period"), provided that no Extension Period may extend
            beyond the stated maturity of the Junior Subordinated Debentures (as
            such stated maturity may be shortened in accordance with the terms
            of the Indenture). As a consequence of any such deferral, quarterly
            Distributions on the Trust Securities by the Issuer Trust will also
            be deferred and the amount of Distributions to which Holders of the
            Trust Securities are entitled will accumulate additional
            Distributions thereon at the rate of ______% per annum, compounded
            ________ from the most recent Distribution payment date on which
            Distributions were paid, computed on the basis of a 360-day year of
            twelve 30-day months and the actual days elapsed in a partial month
            in such period. Additional Distributions payable for each full
            Distribution period will be computed by dividing the rate per annum
            by _____. The term "Distributions" as used in Section 4.1 shall
            include any such additional Distributions provided pursuant to this
            Section 4.1(a)(iii); and

                  (iv) Distributions on the Trust Securities shall be made by
            the Property Trustee from the Payment Account and shall be payable
            on each Distribution Date only to the extent that the Issuer Trust
            has funds then on hand and available in the Payment Account for the
            payment of such Distributions.

                                      -16-
<PAGE>

            (b) Distributions on the Trust Securities with respect to a
Distribution Date shall be payable to the Holders thereof as they appear on the
Securities Register for the Trust Securities at the close of business on the
relevant record date, which shall be at the close of business on the 15th day
(whether or not a Business Day) of the month next preceding the relevant
Distribution Date, whether or not a Business Day.

      SECTION 4.2 Redemption.

            (a) On each Debenture Redemption Date and on the stated maturity of
the Junior Subordinated Debentures, the Issuer Trust will be required to redeem
a Like Amount of Trust Securities at the Redemption Price.

            (b) Notice of redemption shall be given by the Property Trustee by
first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days
prior to the Redemption Date to each Holder of Trust Securities to be redeemed,
at such Holder's address appearing in the Security Register. All notices of
redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price, or if the Redemption Price cannot
            be calculated prior to the time the notice is required to be sent,
            the estimate of the Redemption Price provided pursuant to the
            Indenture together with a statement that it is an estimate and that
            the actual Redemption Price will be calculated on the third Business
            Day prior to the Redemption Date (and if an estimate is provided, a
            further notice shall be sent of the actual Redemption Price on the
            date, or as soon as practicable thereafter, that notice of such
            actual Redemption Price is calculated);

                  (iii) the CUSIP number or CUSIP numbers of the Capital
            Securities affected;

                  (iv) if less than all the Outstanding Trust Securities are to
            be redeemed, the identification and the aggregate Liquidation Amount
            of the particular Trust Securities to be redeemed;

                  (v) that, on the Redemption Date, the Redemption Price will
            become due and payable upon each such Trust Security to be redeemed
            and that Distributions thereon will cease to accumulate on and after
            said date, except as provided in Section 4.2(d) below; and

                  (vi) the place or places where Trust Securities are to be
            surrendered for the payment of the Redemption Price.

            The Issuer Trust in issuing the Trust Securities shall use "CUSIP"
numbers, and the Property Trustee shall indicate the "CUSIP" numbers of the
Trust Securities in notices of redemption and related materials as a convenience
to Holders; provided that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Trust
Securities or as contained in any notice of redemption and related materials.

            (c) The Trust Securities redeemed on each Redemption Date shall be
redeemed at the Redemption Price with the applicable proceeds from the
contemporaneous redemption of Junior

                                      -17-
<PAGE>

Subordinated Debentures. Redemptions of the Trust Securities shall be made and
the Redemption Price shall be payable on each Redemption Date only to the extent
that the Issuer Trust has funds then on hand and legally available in the
Payment Account for the payment of such Redemption Price.

            (d) If the Property Trustee gives a notice of redemption in respect
of any Capital Securities, then, by 12:00 noon, New York City time, on the
Redemption Date, subject to Section 4.2(c), the Property Trustee will, with
respect to Book-Entry Capital Securities, irrevocably deposit with the
Depositary for such Book-Entry Capital Securities, to the extent available
therefor, funds sufficient to pay the applicable Redemption Price and will give
such Depositary irrevocable instructions and authority to pay the Redemption
Price to the Holders of the Capital Securities. With respect to Capital
Securities that are not Book-Entry Capital Securities, the Property Trustee,
subject to Section 4.2(c), will irrevocably deposit with the Paying Agent, to
the extent available therefor, funds sufficient to pay the applicable Redemption
Price and will give the Paying Agent irrevocable instructions and authority to
pay the Redemption Price to the Holder of the Capital Securities upon surrender
of their Capital Securities Certificates. Notwithstanding the foregoing,
Distributions payable on or prior to the Redemption Date for any Trust
Securities called for redemption shall be payable to the Holders of such Trust
Securities as they appear on the Securities Register for the Trust Securities on
the relevant record dates for the related Distribution Dates. If notice of
redemption shall have been given and funds deposited as required, then, upon the
date of such deposit, all rights of Holders holding Trust Securities so called
for redemption will cease, except the right of such Holders to receive the
Redemption Price and any Distribution payable in respect of the Trust Securities
on or prior to the Redemption Date and such Trust Securities will cease to be
Outstanding. In the event that any date on which any applicable Redemption Price
is payable is not a Business Day, then payment of the applicable Redemption
Price payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or other payment in respect of any such
delay), except that, if such Business Day 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. In the event that
payment of the Redemption Price in respect of any Trust Securities called for
redemption is improperly withheld or refused and not paid either by the Issuer
Trust or by the Sponsor pursuant to the Guarantee Agreement, Distributions on
such Trust Securities will continue to accumulate, as set forth in Section 4.1,
from the Redemption Date originally established by the Issuer Trust for such
Trust Securities to the date such applicable Redemption Price is actually paid,
in which case the actual payment date will be the date fixed for redemption for
purposes of calculating the applicable Redemption Price.

            (e) Subject to Section 4.3(a), if less than all the Outstanding
Trust Securities are to be redeemed on a Redemption Date, then the aggregate
Liquidation Amount of such Trust Securities to be redeemed shall be allocated
pro rata to the Common Securities and the Capital Securities based on the
relative Liquidation Amounts of such classes. The particular Capital Securities
to be redeemed shall be selected on a pro rata basis based on their respective
Liquidation Amounts not more than 60 days prior to the Redemption Date by the
Property Trustee from the Outstanding Capital Securities not previously called
for redemption, or if the Capital Securities are then held in the form of a
Book-Entry Capital Security in accordance with the Applicable Procedures. The
Property Trustee shall promptly notify the Securities Registrar in writing of
the Capital Securities selected for redemption and, in the case of any Capital
Securities selected for partial redemption, the Liquidation Amount thereof to be
redeemed. For

                                      -18-
<PAGE>

all purposes of this Trust Agreement, unless the context otherwise requires, all
provisions relating to the redemption of Capital Securities shall relate, in the
case of any Capital Securities redeemed or to be redeemed only in part, to the
portion of the aggregate Liquidation Amount of Capital Securities that has been
or is to be redeemed.

      SECTION 4.3 Subordination of Common Securities.

            (a) Payment of Distributions (including Additional Amounts, if
applicable) on, the Redemption Price of, and the Liquidation Distribution in
respect of, the Trust Securities, as applicable, shall be made pro rata among
the Common Securities and the Capital Securities based on the Liquidation Amount
of such Trust Securities; provided, however, that if on any Distribution Date,
Liquidation Date or Redemption Date an Event of Default resulting from a
Debenture Event of Default specified in Section 501(1) or 501(2) of the
Indenture shall have occurred and be continuing, no payment of any Distribution
(including any Additional Amounts) on, Redemption Price of, or Liquidation
Distribution in respect of, any Common Security, and no other payment on account
of the redemption, liquidation or other acquisition of Common Securities, shall
be made unless payment in full of all accumulated and unpaid Distributions
(including any Additional Amounts) on all Outstanding Capital Securities for all
Distribution periods terminating on or prior thereto, or, in the case of payment
of the Redemption Price, the full amount of such Redemption Price on all
Outstanding Capital Securities then called for redemption, or in the case of
payment of the Liquidation Distribution the full amount of such Liquidation
Distribution on all Outstanding Capital Securities, shall have been made or
provided for, and all funds immediately available to the Property Trustee shall
first be applied to the payment in full of all Distributions (including any
Additional Amounts) on, the Redemption Price of, or the Liquidation Distribution
in respect of Capital Securities then due and payable. The existence of an Event
of Default does not entitle the Holders of Capital Securities to accelerate the
maturity thereof.

            (b) In the case of an Event of Default resulting from a Debenture
Event of Default specified in Section 501(1) or 501(2) of the Indenture that has
occurred and is continuing, the Holders of the Common Securities shall have no
right to act with respect to such Event of Default under this Trust Agreement
until the effects of all such Events of Default with respect to the Capital
Securities have been cured, waived or otherwise eliminated. Until such Events of
Default under this Trust Agreement with respect to the Capital Securities have
been so cured, waived or otherwise eliminated, the Property Trustee shall act
solely on behalf of the Holders of the Capital Securities and not on behalf of
the Holder of the Common Securities, and only the Holders of the Capital
Securities will have the right to direct the Property Trustee to act on their
behalf.

      SECTION 4.4 Payment Procedures.

            Payments of Distributions (including any Additional Amounts) in
respect of the Capital Securities shall be made by check mailed to the address
of the Holder entitled thereto as such address shall appear on the Securities
Register or, if the Capital Securities are held by a Depositary, such
Distributions shall be made to the Depositary, as provided in the Certificate
Depository Agreement. If the Capital Securities are not held by a Depositary,
payments of Distributions to Holders of $1,000,000 or more in aggregate
Liquidation Amount of Capital Securities may be made by wire transfer of
immediately available funds upon written request of

                                      -19-
<PAGE>
such Holder to the Securities Registrar not less than 15 calendar days prior to
the date on which the Distribution is payable. Any such request shall be deemed
to be effective until otherwise modified or rescinded in writing to the
Securities Registrar. Payments in respect of the Common Securities shall be made
in such manner as shall be mutually agreed between the Property Trustee and the
Holder of the Common Securities.

      SECTION 4.5 Tax Returns and Reports.

            The Administrators shall prepare (or cause to be prepared), at the
Sponsor's expense, and file all United States federal, state and local tax and
information returns and reports required to be filed by or in respect of the
Issuer Trust. In this regard, the Administrators shall (a) prepare and file (or
cause to be prepared and filed) all Internal Revenue Service forms required to
be filed in respect of the Issuer Trust in each taxable year of the Issuer
Trust, and (b) prepare and furnish (or cause to be prepared and furnished) to
each Holder all Internal Revenue Service forms required to be provided by the
Issuer Trust. The Administrators shall provide the Sponsor and the Property
Trustee with a copy of all such returns and reports promptly after such filing
or furnishing. The Issuer Trustees shall comply with United States federal
withholding and backup withholding tax laws and information reporting
requirements with respect to any payments to Holders under the Trust Securities.

      SECTION 4.6 Payment of Taxes, Duties, Etc. of the Issuer Trust.

            Upon receipt under the Junior Subordinated Debentures of Additional
Sums, the Property Trustee shall promptly pay, or cause the Administrators to
pay in connection with the filing of any tax returns or reports pursuant to
Section 4.5, any taxes, duties or governmental charges of whatsoever nature
(other than withholding taxes) imposed on the Issuer Trust by the United States
or any other taxing authority, which were included in such Additional Sums.

      SECTION 4.7 Payments under Indenture or Pursuant to Direct Actions.

            Any amount payable hereunder to any Holder of Capital Securities
shall be reduced by the amount of any corresponding payment such Holder has
directly received pursuant to Section 508 of the Indenture or Section 5.13 of
this Trust Agreement.

      SECTION 4.8 Liability of the Holder of the Common Securities.

            As permitted under the Delaware Statutory Trust Act, the Holder of
the Common Securities shall be liable for the debts and obligations of the
Issuer Trust as set forth in the Expense Agreement.

                                      -20-
<PAGE>

                                   ARTICLE V

                          TRUST SECURITIES CERTIFICATES

      SECTION 5.1 Initial Ownership.

            Upon the creation of the Issuer Trust and the contribution by the
Sponsor pursuant to Section 2.3 and until the issuance of the Trust Securities,
and at any time during which no Trust Securities are Outstanding, the Sponsor
shall be the sole beneficial owner of the Issuer Trust.

      SECTION 5.2 The Trust Securities Certificates.

            (a) The Trust Securities Certificates shall be issued in minimum
denominations of $25 Liquidation Amount and integral multiples of $25 in excess
thereof, and shall be executed on behalf of the Issuer Trust by manual or
facsimile signature of at least one Administrator. Trust Securities Certificates
bearing the manual or facsimile signatures of individuals who were, at the time
when such signatures shall have been affixed, authorized to sign on behalf of
the Issuer Trust, shall be validly issued and entitled to the benefits of this
Trust Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the delivery of such Trust Securities
Certificates or did not hold such offices at the date of delivery of such Trust
Securities Certificates. A transferee of a Trust Securities Certificate shall
become a Holder, and shall be entitled to the rights and subject to the
obligations of a Holder hereunder, upon due registration of such Trust
Securities Certificate in such transferee's name pursuant to Section 5.5. A
transferee shall have no rights of a Holder until such registration is made.

            (b) Upon their original issuance, Capital Securities Certificates
shall be issued in the form of one or more Book-Entry Capital Securities
Certificates registered in the name of DTC, as Depositary, or its nominee, and
deposited with DTC or a custodian of DTC for credit by DTC to the respective
accounts of the Owners thereof (or such other accounts as they may direct).

            (c) A single Common Securities Certificate representing the Common
Securities shall be issued to the Sponsor in the form of a definitive Common
Securities Certificate.

      SECTION 5.3 Execution and Delivery of Trust Securities Certificates.

            At the Time of Delivery, and on the date on which the Underwriters
exercise their option to purchase additional Capital Securities pursuant to the
terms of the Underwriting Agreement, if any, at least one of the Administrators
shall cause Trust Securities Certificates, in an aggregate Liquidation Amount as
provided in Sections 2.4 and 2.5, to be executed on behalf of the Issuer Trust
by manual or facsimile signature and delivered to the Property Trustee and upon
such delivery the Property Trustee shall manually authenticate upon the written
order of the Sponsor such Trust Securities Certificates and deliver such Trust
Securities Certificates upon the written order of the Sponsor, executed by two
authorized officers thereof, without further corporate action by the Sponsor, in
authorized denominations.

                                      -21-
<PAGE>

      SECTION 5.4 Book-Entry Capital Securities Certificates.

            (a) Each Book-Entry Capital Securities Certificate issued under this
Trust Agreement shall be registered in the name of the Depositary or a nominee
thereof and delivered to such Depositary, or a nominee thereof, or such
custodian therefor, and each such Book-Entry Capital Securities Certificate
shall constitute a single Capital Securities Certificate for all purposes of
this Trust Agreement.

            (b) Notwithstanding any other provision in this Trust Agreement, a
Book-Entry Capital Securities Certificate may not be exchanged in whole or in
part for Capital Securities Certificates registered, and no transfer of a
Book-Entry Capital Securities Certificate in whole or in part may be registered,
in the name of any Person other than the Depositary for such Book-Entry Capital
Securities Certificate, or a nominee thereof unless (i) such Depositary advises
the Issuer Trust in writing that such Depositary is no longer willing or able or
permitted under applicable law to properly discharge its responsibilities as
Depositary with respect to such Book-Entry Capital Securities Certificates, and
the Sponsor is unable to locate a qualified successor within 90 days after
receiving such notice or becoming aware that the Depositary is no longer so
registered, (ii) the Issuer Trust at its option determines that a Book-Entry
Capital Securities Certificate shall be so exchangeable or that it elects to
terminate the book-entry system through the Depositary, or (iii) there shall
have occurred and be continuing a Debenture Event of Default.

            (c) If any Book-Entry Capital Securities Certificate is to be
exchanged for other Capital Securities Certificates or cancelled in part, or if
any Capital Securities Certificate is to be exchanged in whole or in part for
Book-Entry Capital Securities represented by a Book-Entry Capital Securities
Certificate, then either (i) such Book-Entry Capital Securities Certificate
shall be so surrendered for exchange or cancellation as provided in this Article
V or (ii) the aggregate Liquidation Amount represented by such Book-Entry
Capital Securities Certificate shall be reduced or increased by an amount equal
to the Liquidation Amount, in minimum denominations of $25 Liquidation Amount as
required by Section 5.2, represented by that portion of the Book-Entry Capital
Securities Certificate to be so exchanged or cancelled, or equal to the
Liquidation Amount represented by such other Capital Securities Certificates to
be so exchanged for Book-Entry Capital Securities represented thereby, as the
case may be, by means of an appropriate adjustment made on the records of the
Securities Registrar, whereupon the Property Trustee, in accordance with the
Applicable Procedures, shall instruct the Depositary or its authorized
representative to make a corresponding adjustment to its records. Upon surrender
or adjustment of the Book-Entry Capital Securities Certificates or Certificate
by the Depositary, accompanied by registration instructions, an Administrator
shall execute and the Property Trustee shall authenticate and deliver the
Definitive Capital Securities Certificates issuable in exchange for such
Book-Entry Capital Securities (or any portion thereof) in accordance with the
instructions of the Depositary. None of the Administrators or the Property
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. Upon the issuance of Definitive Capital Securities Certificates,
the Issuer Trustee shall recognize the Holders of the Definitive Capital
Securities Certificates as Holders.

            (d) Every Capital Securities Certificate executed, authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Book-Entry Capital Securities Certificate or any portion thereof, whether
pursuant to this Article V or otherwise, shall be

                                      -22-
<PAGE>

authenticated and delivered in the form of, and shall be, a Book-Entry Capital
Securities Certificate, unless such Capital Securities Certificate is registered
in the name of a Person other than the Depositary for such Book-Entry Capital
Securities Certificate or a nominee thereof.

            (e) The Depositary or its nominee, as the registered owner of a
Book-Entry Capital Securities Certificate, shall be considered the Holder of
such Book-Entry Capital Securities Certificate for all purposes under this Trust
Agreement and the Book-Entry Capital Securities Certificate, and Owners with
respect to a Book-Entry Capital Securities Certificate shall hold such interests
pursuant to the Applicable Procedures. The Sponsor, Securities Registrar, the
Property Trustee and the Administrators shall be entitled to deal with the
Depositary for all purposes of this Trust Agreement relating to the Book-Entry
Capital Securities Certificates (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 of Book-Entry Capital
Securities represented thereby) as the sole Holder of the Book-Entry Capital
Securities represented thereby and shall have no obligations to the Owners
thereof. None of the Sponsor, Property Trustee, the Securities Registrar nor the
Administrators shall have any liability in respect of any transfers effected or
not effected or payments made or not made by the Depositary.

            (f) The rights of the Owners of the Book-Entry Capital Securities
shall be exercised only through the Depositary. Pursuant to the Certificate
Depository Agreement, unless and until Definitive Capital Securities
Certificates are issued pursuant to Section 5.4(b), the initial Depositary will
make book-entry transfers among the Depositary Participants and receive and
transmit payments on the Capital Securities to such Depositary Participants, and
none of the Sponsor, the Administrators or the Issuer Trustees shall have any
responsibility or obligation with respect thereto.

      SECTION 5.5 Registration of Transfer and Exchange Generally; Certain
Transfers and Exchanges; Capital Securities Certificates.

            (a) The Property Trustee shall keep or cause to be kept, at the
office or agency maintained pursuant to Section 5.9, a register or registers
(the "Securities Register") for the purpose of registering Trust Securities
Certificates and transfers and exchanges of Trust Securities Certificates in
which the registrar and transfer agent with respect to the Trust Securities (the
"Securities Registrar"), subject to such reasonable regulations as it may
prescribe, shall provide for the registration of Capital Securities Certificates
and Common Securities Certificates (subject to Section 5.11 in the case of the
Common Securities Certificates) and registration of transfers and exchanges of
Capital Securities Certificates as herein provided. The Property Trustee is
hereby appointed Securities Registrar for the purpose of registering Capital
Securities Certificates and transfers and exchanges as provided herein.

            Upon surrender for registration of transfer of any Capital
Securities Certificate at the office or agency of the Property Trustee
maintained pursuant to Section 5.9, an Administrator shall execute and deliver
to the Property Trustee, and the Property Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Capital Securities Certificates in authorized denominations of a like
aggregate Liquidation Amount and bearing such legends as may be required by this
Trust Agreement.

                                      -23-
<PAGE>

            All Capital Securities issued upon any transfer or exchange of
Capital Securities shall be the valid obligations of the Issuer Trust,
evidencing the same debt, and entitled to the same benefits under this Trust
Agreement, as the Capital Securities surrendered upon such transfer or exchange.

            Every Capital Security presented or surrendered for registration of
transfer or exchange shall (if so required by the Property Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to an Administrator and the Securities Registrar, duly executed by
the Holder thereof or such Holder's attorney duly authorized in writing. Each
Capital Securities Certificate surrendered for registration of transfer or
exchange shall be canceled and subsequently disposed of by the Property Trustee
in accordance with customary practice.

            No service charge shall be made to a Holder for any transfer or
exchange of Capital Securities, but the Property Trustee may require payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Capital Securities.

            The Securities Registrar shall not be required, pursuant to the
provisions of this Section, (i) to issue, register the transfer of or exchange
any Capital Security during a period beginning at the opening of business 15
days before the day of selection for redemption of Capital Securities pursuant
to Article IV and ending at the close of business on the day of mailing of the
notice of redemption, or (ii) to register the transfer of or exchange any
Capital Security so selected for redemption in whole or in part, except, in the
case of any such Capital Security to be redeemed in part, any portion thereof
not to be redeemed.

            (b) Notwithstanding any other provision of this Trust Agreement,
transfers and exchanges of Capital Securities Certificates and beneficial
interests in a Book-Entry Capital Securities Certificate of the kinds specified
in this Section 5.5(b) shall be made only in accordance with this Section
5.5(b).

                  (i) Non-Book-Entry Capital Securities Certificate to
            Book-Entry Capital Securities Certificate. If the Holder of a
            Capital Securities Certificate (other than a Book-Entry Capital
            Securities Certificate) wishes at any time to transfer all or any
            portion of such Capital Securities Certificate to a Person who
            wishes to take delivery thereof in the form of a beneficial interest
            in a Book-Entry Capital Securities Certificate, such transfer may be
            effected only in accordance with the provisions of this Clause
            (b)(i) and subject to the Applicable Procedures. Upon receipt by the
            Securities Registrar of (A) such Capital Securities Certificate as
            provided in Section 5.5(a) and instructions satisfactory to the
            Securities Registrar directing that a beneficial interest in the
            Book-Entry Capital Securities Certificate of a specified number of
            Capital Securities not greater than the number of Capital Securities
            represented by such Capital Securities Certificate be credited to a
            specified Depositary Participant's account, then the Securities
            Registrar shall cancel such Capital Securities Certificate (and
            issue a new Capital Securities Certificate in respect of any
            untransferred portion thereof) as provided in Section 5.5(a) and
            increase the aggregate Liquidation Amount of the Book-Entry Capital
            Securities Certificate by the Liquidation Amount represented by such
            Capital Securities so transferred as provided in Section 5.4(c).

                                      -24-
<PAGE>

                  (ii) Non-Book-Entry Capital Securities Certificate to
            Non-Book-Entry Capital Securities Certificate. A Capital Securities
            Certificate that is not a Book-Entry Capital Securities Certificate
            may be transferred, in whole or in part, to a Person who takes
            delivery in the form of another Capital Securities Certificate that
            is not a Book-Entry Capital Securities Certificate only under the
            circumstances described in Section 5.4(b).

                  (iii) Exchanges between Book-Entry Capital Securities
            Certificate and Non-Book-Entry Capital Securities Certificate. A
            beneficial interest in a Book-Entry Capital Securities Certificate
            may be exchanged for a Capital Securities Certificate that is not a
            Book-Entry Capital Securities Certificate as provided in Section
            5.4.

      SECTION 5.6 Mutilated, Destroyed, Lost or Stolen Trust Securities
Certificates.

            If (a) any mutilated Trust Securities Certificate shall be
surrendered to the Securities Registrar, or if the Securities Registrar shall
receive evidence to its satisfaction of the destruction, loss or theft of any
Trust Securities Certificate and (b) there shall be delivered to the Securities
Registrar and the Administrators such security or indemnity as may be required
by them to save each of them harmless, then in the absence of notice that such
Trust Securities Certificate shall have been acquired by a bona fide purchaser,
the Administrators, or any one of them, on behalf of the Issuer Trust shall
execute and make available for delivery, and the Property Trustee shall
authenticate, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Trust Securities Certificate, a new Trust Securities Certificate of
like class, tenor and denomination. In connection with the issuance of any new
Trust Securities Certificate under this Section, the Administrators or the
Securities Registrar may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection therewith and
any other expenses (including the fees and expenses of the Property Trustee)
connected therewith. Any Trust Securities Certificate issued pursuant to this
Section shall constitute conclusive evidence of an undivided beneficial interest
in the assets of the Issuer Trust corresponding to that evidenced by the
mutilated, lost, stolen or destroyed Trust Securities Certificate, as if
originally issued, whether or not the mutilated, lost, stolen or destroyed Trust
Securities Certificate shall be found at any time.

            In case any such mutilated, destroyed, lost or stolen Trust
Securities Certificate has become or is about to become due and payable, the
Company in its discretion may, instead of issuing a new Trust Securities
Certificate, pay such Trust Securities Certificate.

            The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Trust Securities
Certificates.

      SECTION 5.7 Persons Deemed Holders.

            The Sponsor, Issuer Trustees, the Administrators and the Securities
Registrar shall each treat the Person in whose name any Trust Securities
Certificate shall be registered in the Securities Register as the owner of such
Trust Securities Certificates for the purpose of receiving Distributions and for
all other purposes whatsoever, and none of the Sponsor, Issuer Trustees, the
Administrators or the Securities Registrar shall be bound by any notice to the
contrary.

                                      -25-
<PAGE>

      SECTION 5.8 Access to List of Holders' Names and Addresses.

            Each Holder and each Owner shall be deemed to have agreed not to
hold the Sponsor, the Delaware Trustee, the Property Trustee or the
Administrators accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

      SECTION 5.9 Maintenance of Office or Agency.

            The Property Trustee shall designate, with the consent of the
Administrators, which consent shall not be unreasonably withheld, an office or
offices or agency or agencies where Capital Securities Certificates may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Issuer Trustees in respect of the Trust Securities
Certificates may be served. The Property Trustee initially designates its
Corporate Trust Office at 101 Barclay Street, New York, NY 10286, Attention:
Corporate Trust Administration, as its corporate trust office for such purposes.
The Property Trustee shall give prompt written notice to the Sponsor, the
Administrators and the Holders of any change in the location of the Securities
Register or any such office or agency.

      SECTION 5.10 Appointment of Paying Agent.

            The Paying Agent shall make Distributions to Holders from the
Payment Account and shall report the amounts of such Distributions to the
Property Trustee and the Administrators. Any Paying Agent shall have the
revocable power to withdraw funds from the Payment Account solely for the
purpose of making the Distributions referred to above. The Administrators may
revoke such power and remove any Paying Agent in their sole discretion. The
Paying Agent shall initially be the Property Trustee. Any Person acting as
Paying Agent shall be permitted to resign as Paying Agent upon 30 days' written
notice to the Administrators and the Property Trustee. In the event that the
Property Trustee shall no longer be the Paying Agent or a successor Paying Agent
shall resign or its authority to act be revoked, the Property Trustee shall
appoint a successor (which shall be a bank or trust company) that is reasonably
acceptable to the Administrators to act as Paying Agent. Such successor Paying
Agent or any additional Paying Agent appointed by the Property Trustee shall
execute and deliver to the Issuer Trustees an instrument in which such successor
Paying Agent or additional Paying Agent shall agree with the Issuer Trustees
that as Paying Agent, such successor Paying Agent or additional Paying Agent
will hold all sums, if any, held by it for payment to the Holders in trust for
the benefit of the Holders entitled thereto until such sums shall be paid to
such Holders. The Paying Agent shall return all unclaimed funds to the Property
Trustee and upon removal of a Paying Agent such Paying Agent shall also return
all funds in its possession to the Property Trustee. The provisions of Sections
8.1, 8.3 and 8.6 herein shall apply to the Property Trustee also in its role as
Paying Agent, for so long as the Property Trustee shall act as Paying Agent and,
to the extent applicable, to any other Paying Agent appointed hereunder. Any
reference in this Trust Agreement to the Paying Agent shall include any
co-Paying Agent chosen by the Property Trustee that is acceptable to the
Administrators unless the context requires otherwise.

                                      -26-
<PAGE>

      SECTION 5.11 Ownership of Common Securities by Sponsor.

            At the Time of Delivery, the Sponsor shall acquire and thereafter
shall retain beneficial and record ownership of the Common Securities. Neither
the Sponsor nor any successor Holder of the Common Securities may transfer the
Common Securities except (i) in connection with a consolidation or merger of the
Sponsor into another Person or any conveyance, transfer or lease by the Sponsor
of its properties and assets substantially as an entirety to any Person,
pursuant to Section 801 of the Indenture, or (ii) to an Affiliate of the Sponsor
and by any such Affiliate to the Sponsor or to another Affiliate of the Sponsor.
To the fullest extent permitted by law, any attempted transfer of the Common
Securities, other than as set forth in the immediately preceding sentence, shall
be void. The Administrators shall cause each Common Securities Certificate
issued to the Sponsor to contain a legend stating substantially "TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT
TO THE SPONSOR OR AN AFFILIATE OF THE SPONSOR IN COMPLIANCE WITH SECTION 5.11 OF
THE TRUST AGREEMENT."

      SECTION 5.12 Notices to Depositary.

            To the extent that a notice or other communication to the Holders is
required under this Trust Agreement, for so long as Capital Securities are
represented by a Book-Entry Capital Securities Certificate, the Administrators
and the Issuer Trustees shall give all such notices and communications specified
herein to be given to the Depositary, and shall have no obligations to the
Owners.

      SECTION 5.13 Rights of Holders.

            (a) The legal title to the Trust Property is vested exclusively in
the Property Trustee (in its capacity as such) in accordance with Section 2.9,
and the Holders shall not have any right or title therein other than the
undivided beneficial interest in the assets of the Issuer Trust conferred by
their Trust Securities and they shall have no right to call for any partition or
division of property, profits or rights of the Issuer Trust except as described
below. The Trust Securities shall be personal property giving only the rights
specifically set forth therein and in this Trust Agreement. The Trust Securities
shall have no preemptive or similar rights and when issued and delivered to
Holders against payment of the purchase price therefor, as provided herein, the
Capital Securities will be fully paid and nonassessable by the Issuer Trust.
Subject to the provisions of Section 4.8, the Holders of the Trust Securities,
in their capacities as such, 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.

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

                                      -27-
<PAGE>

            At any time after such a declaration of acceleration with respect to
the Junior Subordinated Debentures has been made and before a judgment or decree
for payment of the money due has been obtained by the Debt Securities Trustee as
provided in the Indenture, if the Property Trustee fails to annul any such
declaration and waive such default, the Holders of at least a Majority in
Liquidation Amount of the Capital Securities, by written notice to the Property
Trustee, the Sponsor and the Debt Securities Trustee, may rescind and annul such
declaration and its consequences if:

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

                        (A) all overdue installments of interest on all of the
                  Junior Subordinated Debentures,

                        (B) any accrued Additional Interest on all of the Junior
                  Subordinated Debentures,

                        (C) the principal of (and premium, if any, on) any
                  Junior Subordinated Debentures that have become due otherwise
                  than by such declaration of acceleration and interest and
                  Additional Interest thereon at the rate borne by the Junior
                  Subordinated Debentures, and

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

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

            The Holders of at least a Majority in Liquidation Amount of the
Capital Securities may, on behalf of the Holders of all the Capital Securities,
waive any past default under the Indenture, except a default in the payment of
principal or interest (unless such 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 Debt Securities Trustee) or a default
in respect of a covenant or provision that under the Indenture cannot be
modified or amended without the consent of each holder of outstanding Junior
Subordinated Debentures. No such rescission shall affect any subsequent default
or impair any right consequent thereon.

            Upon receipt by the Property 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
Property 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

                                      -28-
<PAGE>

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 (or such greater number of days as the Property Trustee may specify) 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 (or such longer 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 5.13(b).

            (c) For so long as any Capital Securities remain Outstanding, to the
fullest extent permitted by law and subject to the terms of this Trust Agreement
and the Indenture, upon a Debenture Event of Default specified in Section 501(1)
or 501(2) of the Indenture, any Holder of Capital Securities shall have the
right to institute a proceeding directly against the Sponsor, pursuant to
Section 508 of the Indenture, for enforcement of payment to such Holder of any
amounts payable in respect of the Junior Subordinated Debentures having an
aggregate principal amount equal to the aggregate Liquidation Amount of the
Capital Securities of such Holder (a "Direct Action"). Except as set forth in
Section 5.13(b) and this Section 5.13(c), the Holders of Capital Securities
shall have no right to exercise directly any right or remedy available to the
holders of, or in respect of, the Junior Subordinated Debentures.

            (d) Except as otherwise provided in clauses of this Section 5.13,
the Holders of at least 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 Trust Agreement, but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

                                   ARTICLE VI

                        ACTS OF HOLDERS; MEETINGS; VOTING

      SECTION 6.1 Limitations on Holder's Voting Rights.

            (a) Except as expressly provided in this Trust Agreement and in the
Indenture and as otherwise required by law, no Holder of Capital Securities
shall have any right to vote or in any manner otherwise control the
administration, operation and management of the Issuer Trust or the obligations
of the parties hereto, nor shall anything herein set forth or contained in the
terms of the Trust Securities Certificates be construed so as to constitute the
Holders from time to time as partners or members of an association.

            (b) So long as any Junior Subordinated Debentures are held by the
Property Trustee on behalf of the Issuer Trust, the Property Trustee shall not
(i) direct the time, method and place of conducting any proceeding for any
remedy available to the Debt Securities Trustee, or exercise any trust or power
conferred on the Property Trustee with respect to the Junior Subordinated
Debentures, (ii) waive any past default that may be waived under Section 513 of

                                      -29-
<PAGE>

the Indenture, (iii) exercise any right to rescind or annul a declaration that
the principal of all the Junior Subordinated Debentures shall be due and payable
in accordance with Section 502 of the Indenture, or (iv) consent to any
amendment, modification or termination of the Indenture or the Junior
Subordinated Debentures, where such consent shall be required, without, in each
case, obtaining the prior approval of the Holders of at least a Majority in
Liquidation Amount of the Capital Securities, provided, however, that where a
consent under the Indenture would require the consent of each Holder of Junior
Subordinated Debentures affected thereby, no such consent shall be given by the
Property Trustee without the prior written consent of the Holder of each
Outstanding Capital Security affected thereby. The Property Trustee shall not
revoke any action previously authorized or approved by a vote of the Holders of
Capital Securities, except by a subsequent vote of the Holders of Capital
Securities. The Property Trustee shall notify all Holders of the Capital
Securities of any notice of default received with respect to the Junior
Subordinated Debentures. In addition to obtaining the foregoing approvals of the
Holders of the Capital Securities, prior to taking any of the foregoing actions,
the Property Trustee shall, at the expense of the Sponsor, obtain an Opinion of
Counsel experienced in such matters to the effect that such action shall not
cause the Issuer Trust to be taxable as a corporation for United States federal
income tax purposes.

            (c) If any proposed amendment to the Trust Agreement provides for,
or the Issuer Trustees otherwise propose to effect, (i) any action that would
adversely affect in any material respect the powers, preferences or special
rights of the Capital Securities, whether by way of amendment to this Trust
Agreement or otherwise, or (ii) the dissolution, winding-up or termination of
the Issuer Trust, other than pursuant to the terms of this Trust Agreement, then
the Holders of Outstanding Capital Securities as a 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 at least a Majority in
Liquidation Amount of the Capital Securities. Notwithstanding any other
provision of this Trust Agreement, no amendment to this Trust Agreement may be
made if, as a result of such amendment, it would cause the Issuer Trust to be
taxable as a corporation for United States federal income tax purposes.

      SECTION 6.2 Notice of Meetings.

            Notice of all meetings of the Holders of the Capital Securities,
stating the time, place and purpose of the meeting, shall be given by the
Property Trustee pursuant to Section 10.8 to each Holder of Capital Securities,
at such Holder's registered address, at least 15 days and not more than 90 days
before the meeting. At any such meeting, any business properly before the
meeting may be so considered whether or not stated in the notice of the meeting.
Any adjourned meeting may be held as adjourned without further notice.

      SECTION 6.3 Meetings of Holders of the Capital Securities.

            No annual meeting of Holders is required to be held. The Property
Trustee, however, shall call a meeting of the Holders of Capital Securities to
vote on any matter upon the written request of the Holders of at least a
Majority in Liquidation Amount of the Capital Securities and the Administrators
or the Property Trustee may, at any time in their discretion, call a meeting of
the Holders of the Capital Securities to vote on any matters as to which such
Holders are entitled to vote.

                                      -30-
<PAGE>

            The Holders of at least a Majority in Liquidation Amount of the
Capital Securities, present in person or by proxy, shall constitute a quorum at
any meeting of Holders of the Capital Securities.

            If a quorum is present at a meeting, an affirmative vote by the
Holders present, in person or by proxy, holding Capital Securities representing
at least a Majority in Liquidation Amount of the Capital Securities shall
constitute the action of the Holders of the Capital Securities, unless this
Trust Agreement requires a greater number of affirmative votes.

      SECTION 6.4 Voting Rights.

            Holders shall be entitled to one vote for each $25 of Liquidation
Amount represented by their Outstanding Trust Securities in respect of any
matter as to which such Holders are entitled to vote.

      SECTION 6.5 Proxies, etc.

            At any meeting of Holders, any Holder entitled to vote thereat may
vote by proxy, provided that no proxy shall be voted at any meeting unless it
shall have been placed on file with the Property Trustee, or with such other
officer or agent of the Issuer Trust as the Property Trustee may direct, for
verification prior to the time at which such vote shall be taken. Pursuant to a
resolution of the Property Trustee, proxies may be solicited in the name of the
Property Trustee or one or more officers of the Property Trustee. Only Holders
of record shall be entitled to vote. When Trust Securities are held jointly by
several persons, any one of them may vote at any meeting in person or by proxy
in respect of such Trust Securities, but if more than one of them shall be
present at such meeting in person or by proxy, and such joint owners or their
proxies so present disagree as to any vote to be cast, such vote shall not be
received in respect of such Trust Securities. A proxy purporting to be executed
by or on behalf of a Holder shall be deemed valid unless challenged at or prior
to its exercise, and the burden of proving invalidity shall rest on the
challenger. No proxy shall be valid more than three years after its date of
execution.

      SECTION 6.6 Holder Action by Written Consent.

            Any action that may be taken by Holders at a meeting may be taken
without a meeting if Holders holding at least a Majority in Liquidation Amount
of the Capital Securities entitled to vote in respect of such action (or such
larger proportion thereof as shall be required by any other provision of this
Trust Agreement) shall consent to the action in writing.

      SECTION 6.7 Record Date for Voting and Other Purposes.

            For the purposes of determining the Holders who are entitled to
notice of and to vote at any meeting or by written consent, or to participate in
any distribution on the Trust Securities in respect of which a record date is
not otherwise provided for in this Trust Agreement, or for the purpose of any
other action, the Administrators or Property Trustee may from time to time fix a
date, not more than 90 days prior to the date of any meeting of Holders or the
payment of a distribution or other action, as the case may be, as a record date
for the determination of the identity of the Holders of record for such
purposes.

                                      -31-
<PAGE>

      SECTION 6.8 Acts of Holders.

            Any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Trust Agreement to be
given, made or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing; and, except as otherwise expressly
provided herein, such action shall become effective when such instrument or
instruments are delivered to the Property Trustee. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Trust
Agreement and (subject to Section 8.1) conclusive in favor of the Sponsor,
Issuer Trustees and the Administrators, if made in the manner provided in this
Section.

            The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner that any Issuer Trustee or Administrator receiving the same
deems sufficient.

            The ownership of Trust Securities shall be proved by the Securities
Register.

            Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Trust Security shall bind every future
Holder of the same Trust Security and the Holder of every Trust Security issued
upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the
Sponsor, Issuer Trustees, the Administrators or the Issuer Trust in reliance
thereon, whether or not notation of such action is made upon such Trust
Security.

            Without limiting the foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Trust Security may do so with
regard to all or any part of the Liquidation Amount of such Trust Security or by
one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such Liquidation Amount.

            If any dispute shall arise among the Holders, the Administrators or
the Issuer Trustees with respect to the authenticity, validity or binding nature
of any request, demand, authorization, direction, consent, waiver or other Act
of such Holder or Issuer Trustee under this Article VI, then the determination
of such matter by the Property Trustee shall be conclusive with respect to such
matter.

                                      -32-
<PAGE>

                                  ARTICLE VII

                         REPRESENTATIONS AND WARRANTIES

      SECTION 7.1 Representations and Warranties of the Property Trustee and the
Delaware Trustee.

            The Property Trustee and the Delaware Trustee, each severally on
behalf of and as to itself, hereby represents and warrants for the benefit of
the Sponsor and the Holders that:

            (a) the Property Trustee is a New York banking corporation, duly
organized, validly existing and in good standing under the laws of the State of
New York;

            (b) the Property Trustee has full corporate and trust power, legal
right and authority to execute, deliver and perform its obligations under the
terms of this Trust Agreement and has taken all necessary action to authorize
the execution, delivery and performance by it of this Trust Agreement;

            (c) the Delaware Trustee is duly organized, validly existing and in
good standing as a banking corporation under the laws of the State of Delaware,
and has its principal place of business in the State of Delaware;

            (d) the Delaware Trustee has full corporate and trust power, legal
right and authority to execute, deliver and perform its obligations under the
terms of the Trust Agreement and has taken all necessary action to authorize the
execution, delivery and performance by it of this Trust Agreement;

            (e) this Trust Agreement has been duly authorized, executed and
delivered by the Property Trustee and the Delaware Trustee and constitutes the
valid and legally binding agreement of each of the Property Trustee and the
Delaware Trustee enforceable against each of them in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors' rights and to general equity principles;

            (f) the execution, delivery and performance of this Trust Agreement
has been duly authorized by all necessary corporate or other action on the part
of the Property Trustee and the Delaware Trustee and does not require any
approval of stockholders of the Property Trustee or the Delaware Trustee and
such execution, delivery and performance will not (i) violate the Charter or
By-laws of the Property Trustee or the Delaware Trustee, (ii) violate any
provision of, or constitute, with or without notice or lapse of time, a default
under, or result in the creation or imposition of, any Lien on any properties
included in the Trust Property pursuant to the provisions of, any indenture,
mortgage, credit agreement, license or other agreement or instrument to which
the Property Trustee or the Delaware Trustee is a party or by which it is bound,
or (iii) violate any law, governmental rule or regulation of the States of New
York or Delaware governing the banking, trust or general powers of the Property
Trustee or the Delaware Trustee (as appropriate in context) or any order,
judgment or decree applicable to the Property Trustee or the Delaware Trustee;

                                      -33-
<PAGE>

            (g) neither the authorization, execution or delivery by the Property
Trustee or the Delaware Trustee of this Trust Agreement nor the consummation of
any of the transactions by the Property Trustee or the Delaware Trustee (as
appropriate in context) contemplated herein requires the consent or approval of,
the giving of notice to, the registration with or the taking of any other action
with respect to any governmental authority or agency under any existing law of
the States of New York or Delaware governing the banking, trust or general
powers of the Property Trustee or the Delaware Trustee, as the case may be;

            (h) there are no proceedings pending or, to the best of each of the
Property Trustee's and the Delaware Trustee's knowledge, threatened against or
affecting the Property Trustee or the Delaware Trustee in any court or before
any governmental authority, agency or arbitration board or tribunal that,
individually or in the aggregate, would materially and adversely affect the
Issuer Trust or would question the right, power and authority of the Property
Trustee or the Delaware Trustee, as the case may be, to enter into or perform
its obligations as one of the Issuer Trustees under this Trust Agreement; and

            (i) each of the Property Trustee and the Delaware Trustee satisfies
the qualifications set forth in Section 8.7.

      SECTION 7.2 Representations and Warranties of Sponsor.

            The Sponsor hereby represents and warrants for the benefit of the
Holders that there are no taxes, fees or other governmental charges payable by
the Issuer Trust (or the Issuer Trustees on behalf of the Issuer Trust) under
the laws of the State of Delaware or any political subdivision thereof in
connection with the execution, delivery and performance by either the Property
Trustee or the Delaware Trustee, as the case may be, of this Trust Agreement.

                                  ARTICLE VIII

                     THE ISSUER TRUSTEES; THE ADMINISTRATORS

      SECTION 8.1 Certain Duties and Responsibilities.

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

                                      -34-
<PAGE>

reliance on the provisions of this Trust Agreement or the advice of counsel. The
provisions of this Trust Agreement, to the extent that they restrict the duties
and liabilities of the Issuer Trustees and Administrators otherwise existing at
law or in equity, are agreed by the Sponsor and the Holders to replace such
other duties and liabilities of the Issuer Trustees and Administrators.

            (b) All payments made by the Property Trustee or a Paying Agent in
respect of the Trust Securities shall be made only from the revenue and proceeds
from the Trust Property and only to the extent that there shall be sufficient
revenue or proceeds from the Trust Property to enable the Property Trustee or a
Paying Agent to make payments in accordance with the terms hereof. Each Holder,
by its acceptance of a Trust Security, agrees that it will look solely to the
revenue and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that neither the Issuer Trustees nor
the Administrators are personally liable to it for any amount distributable in
respect of any Trust Security or for any other liability in respect of any Trust
Security. This Section 8.1(b) does not limit the liability of the Issuer
Trustees expressly set forth elsewhere in this Trust Agreement or, in the case
of the Property Trustee, in the Trust Indenture Act.

            (c) If an Event of Default has occurred (that has not been cured or
waived pursuant to Section 5.13), the Property Trustee shall enforce this Trust
Agreement for the benefit of the Holders and shall exercise such of the rights
and powers vested in it by this Trust Agreement, and use the same degree of care
and skill in its exercise thereof, as a prudent person would exercise or use
under the circumstances in the conduct of his or her own affairs.

            (d) No provision of this Trust Agreement shall be construed to
relieve the Property Trustee or the Delaware Trustee from liability for its own
negligent action, its own negligent failure to act, its own bad faith or its own
willful misconduct, except that:

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

                        (A) the duties and obligations of the Property Trustee
                  shall be determined solely by the express provisions of this
                  Trust Agreement (including pursuant to Section 10.10), and the
                  Property Trustee shall not be liable except for the
                  performance of such duties and obligations as are specifically
                  set forth in this Trust Agreement (including pursuant to
                  Section 10.10); and

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

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<PAGE>

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

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

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

                  (v) the Property 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 Property Trustee
            need not be segregated from other funds held by it except in
            relation to the Payment Account maintained by the Property Trustee
            pursuant to Section 3.1 and except to the extent otherwise required
            by law;

                  (vi) the Property Trustee shall not be responsible for
            monitoring the compliance by the Administrators or the Sponsor with
            their respective duties under this Trust Agreement, nor shall the
            Property Trustee be liable for the default or misconduct of any
            other Issuer Trustee, the Administrators or the Sponsor; and

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

            (e) The Administrators shall not be responsible for monitoring the
compliance by the Issuer Trustees or the Sponsor with their respective duties
under this Trust Agreement, nor shall any Administrator be liable for the
default or misconduct of any other Administrator, the Issuer Trustees or the
Sponsor.

      SECTION 8.2 Certain Notices.

            If any Event of Default occurs hereunder with respect to the Capital
Securities, the Property Trustee shall give the Holders of the Capital
Securities, and the Administrators and the Sponsor, notice of such Event of
Default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of an Event of Default where notice is required, no
such notice shall be given until at least 30 days after the occurrence hereof.

                                      -36-
<PAGE>

            Within five Business Days after the receipt of notice of the
Sponsor's exercise of its right to defer the payment of interest on the Junior
Subordinated Debentures pursuant to the Indenture, the Property Trustee shall
transmit, in the manner and to the extent provided in Section 10.8, notice of
such exercise to the Holders and the Administrators, unless such exercise shall
have been revoked.

      SECTION 8.3 Certain Rights of Property Trustee.

            Subject to the provisions of Section 8.1:

            (a) the Property Trustee may conclusively rely and shall be
protected in acting or refraining from acting in good faith upon any resolution,
Opinion of Counsel, certificate, written representation of a Holder or
transferee, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, 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 or presented by the proper
party or parties;

            (b) if (i) in performing its duties under this Trust Agreement the
Property Trustee is required to decide between alternative courses of action or
(ii) in construing any of the provisions of this Trust Agreement the Property
Trustee finds the same ambiguous or inconsistent with any other provisions
contained herein or (iii) the Property Trustee is unsure of the application of
any provision of this Trust Agreement, then, except as to any matter as to which
the Holders of the Capital Securities are entitled to vote under the terms of
this Trust Agreement, the Property Trustee shall deliver a notice to the Sponsor
requesting written instructions of the Sponsor as to the course of action to be
taken and the Property Trustee shall take such action, or refrain from taking
such action, as the Property Trustee shall be instructed in writing to take, or
to refrain from taking, by the Sponsor; provided, however, that if the Property
Trustee does not receive such instructions of the Sponsor within ten Business
Days after it has delivered such notice, it may, but shall be under no duty to,
take or refrain from taking such action not inconsistent with this Trust
Agreement as it shall deem advisable and in the best interests of the Holders,
in which event the Property Trustee shall have no liability except for its own
bad faith, negligence or willful misconduct;

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

            (d) any direction or act of an Administrator contemplated by this
Trust Agreement shall be sufficiently evidenced by a certificate executed by
such Administrator and setting forth such direction or act;

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

            (f) the Property Trustee may consult with legal counsel (which
counsel may be counsel to the Sponsor or any of its Affiliates, and may include
any of its employees) and the advice of such legal counsel with respect to legal
matters shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith

                                      -37-
<PAGE>

and in reliance thereon and in accordance with such advice or opinion. The
Property Trustee shall have the right at any time to seek instructions
concerning the administration of this Trust Agreement from any court of
competent jurisdiction;

            (g) the Property Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Trust Agreement at the request
or direction of any of the Holders pursuant to this Trust Agreement, unless such
Holders shall have offered to the Property Trustee reasonable security or
indemnity against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction; provided, that nothing
contained in this Section 8.3(g) shall be taken to relieve the Property Trustee,
upon the occurrence of an Event of Default, of its obligation to exercise the
rights and powers vested in it by this Trust Agreement;

            (h) the Property Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, 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 Property Trustee may make such further inquiry or investigation into such
facts or matters as it may see fit;

            (i) the Property Trustee may execute any of the trusts or powers
hereunder or perform any of its duties hereunder either directly or by or
through its agents or attorneys; provided that the Property Trustee shall be
responsible for its own negligence, bad faith and misconduct with respect to
selection of any agent or attorney appointed by it hereunder; and

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

            No provision of this Trust Agreement shall be deemed to impose any
duty or obligation on any Issuer Trustee or Administrator 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 such Person
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 any Issuer Trustee or
Administrator shall be construed to be a duty.

      SECTION 8.4 Not Responsible for Recitals or Issuance of Securities.

            The recitals contained herein and in the Trust Securities shall be
taken as the statements of the Issuer Trust, and the Issuer Trustees and the
Administrators do not assume any responsibility for their correctness. Except as
provided in Section 7.1, the Issuer Trustees and the Administrators make no
representations as to the validity or sufficiency of this Trust Agreement or the
Trust Securities. The Issuer Trustees and the Administrators shall not be

                                      -38-
<PAGE>

accountable for the use or application by the Sponsor of the proceeds of the
Junior Subordinated Debentures.

      SECTION 8.5 May Hold Securities.

            Any Issuer Trustee, any Paying Agent, any Securities Registrar, or
any Administrator or any other agent of any Issuer Trustee, any Paying Agent,
any Securities Registrar, or any Administrator, in its individual or any other
capacity, may become the owner or pledgee of Trust Securities and, subject to
Sections 8.8 and 8.13, may otherwise deal with the Issuer Trust with the same
rights it would have if it were not an Issuer Trustee, Paying Agent, Securities
Registrar, any Administrator or such other agent.

      SECTION 8.6 Compensation; Indemnity; Fees.

            The Sponsor agrees:

            (a) to pay to the Issuer Trustees and the Administrators from time
to time such reasonable compensation for all services rendered by them hereunder
as may be agreed in writing by the Issuer Trustees and the Administrators, as
the case may be, and the Sponsor 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);

            (b) except as otherwise provided herein, to reimburse the Issuer
Trustees and the Administrators upon request for all reasonable expenses,
disbursements and advances incurred or made by the Issuer Trustees or the
Administrators, as the case may be, in accordance with any provision of this
Trust Agreement (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to their negligence, bad faith or willful
misconduct; and

            (c) to indemnify and hold harmless each Issuer Trustee and each
Administrator against, any loss, liability or expense incurred by such Person
without, in the case of an Issuer Trustee, negligence or bad faith on its part,
or, in the case of an Administrator, gross negligence or willful misconduct,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the reasonable costs and expenses of
defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder.

            The provisions of this Section 8.6 shall survive the termination of
this Trust Agreement and the removal or resignation of any Issuer Trustee or
Administrator.

            No Issuer Trustee may claim any Lien on any Trust Property as a
result of any amount due pursuant to this Section 8.6.

            The Sponsor, any Administrator and any Issuer Trustee (subject to
Section 8.8) 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 Issuer Trust, and the Issuer Trust and the Holders of
Trust Securities shall have no rights by virtue of this Trust Agreement 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 Issuer
Trust, shall

                                      -39-
<PAGE>

not be deemed wrongful or improper. Neither the Sponsor, any Administrator, nor
any Issuer Trustee shall be obligated to present any particular investment or
other opportunity to the Issuer Trust even if such opportunity is of a character
that, if presented to the Issuer Trust, could be taken by the Issuer Trust, and
the Sponsor, any Administrator or any Issuer 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
Issuer 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 depository 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.

            In the event that the Property Trustee is also acting as Paying
Agent or Securities Registrar hereunder, the rights and protections afforded to
the Property Trustee pursuant to this Article VIII shall also be afforded to
such Paying Agent or Securities Registrar, as applicable.

      SECTION 8.7 Corporate Property Trustee Required; Eligibility of Issuer
Trustees and Administrators.

            (a) There shall at all times be a Property Trustee hereunder with
respect to the Trust Securities. The Property Trustee shall be a Person, other
than the Sponsor or an Affiliate of the Sponsor, that is a national or
state-chartered bank and eligible pursuant to the Trust Indenture Act to act as
such and that has a combined capital and surplus of at least $50,000,000. If any
such Person publishes reports of condition at least annually, pursuant to law or
to the requirements of its supervising or examining authority, then for the
purposes of this Section and to the extent permitted by the Trust Indenture Act,
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 the Property Trustee with respect to the Trust
Securities shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. At the time of appointment, the Property
Trustee must have securities rated in one of the three highest rating categories
by a nationally recognized statistical rating organization.

            (b) There shall at all times be one or more Administrators
hereunder. Each Administrator shall be either a natural person who is at least
21 years of age or a legal entity that shall act through one or more persons
authorized to bind that entity. An employee, officer or Affiliate of the Sponsor
may serve as an Administrator.

            (c) There shall at all times be a Delaware Trustee. The Delaware
Trustee shall either be (i) a natural person who is at least 21 years of age and
a resident of the State of Delaware or (ii) a legal entity with its principal
place of business in the State of Delaware and that otherwise meets the
requirements of applicable Delaware law and that shall act through one or more
persons authorized to bind such entity.

      SECTION 8.8 Conflicting Interests.

            If the Property Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Property Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Trust
Agreement. To the extent permitted by such Act, the Property Trustee shall not
be

                                      -40-
<PAGE>

deemed to have a conflicting interest by virtue of being a trustee under this
Trust Agreement with respect to securities of more than one series or a trustee
under the Guarantee Agreement or the Indenture.

      SECTION 8.9 Co-Trustees and Separate Trustee.

            Unless a Debenture Event of Default under Section 501(1) or 501(2)
shall have occurred and be continuing, at any time or times, for the purpose of
meeting the legal requirements of the Trust Indenture Act or of any jurisdiction
in which any part of the Trust Property may at the time be located, the Sponsor
and the Administrators, by agreed action of the majority of such Administrators,
shall have the power to appoint, and upon the written request of the
Administrators, the Sponsor shall for such purpose join with the Administrators
in the execution, delivery, and performance of all instruments and agreements
necessary or proper to appoint, one or more Persons approved by the Property
Trustee either to act as co-trustee, jointly with the Property Trustee, of all
or any part of such Trust Property, or to the extent required by law to act as
separate trustee of any such property, in either case with such powers as may be
provided in the instrument of appointment, and to vest in such Person or Persons
in the capacity aforesaid, any property, title, right or power deemed necessary
or desirable, subject to the other provisions of this Section. Any co-trustee or
separate trustee appointed pursuant to this Section shall either be (i) a
natural person who is at least 21 years of age and a resident of the United
States, or (ii) a legal entity with its principal place of business in the
United States that shall act through one or more persons authorized to bind such
entity. In the case a Debenture Event of Default under Section 501(1) or 501(2)
of the Indenture shall have occurred and be continuing, the Property Trustee
alone shall have the power to make such appointment.

            Should any written instrument from the Sponsor be required by any
co-trustee or separate trustee so appointed for more fully confirming to such
co-trustee or separate trustee such property, title, right, or power, any and
all such instruments shall, on request, be executed, acknowledged and delivered
by the Sponsor.

            Every co-trustee or separate trustee shall, to the extent permitted
by law, but to such extent only, be appointed subject to the following terms,
namely:

            (a) The Trust Securities shall be executed by one or more
Administrators, and the Trust Securities shall be authenticated by the manual
signature of the Property Trustee and delivered, and all rights, powers, duties,
and obligations hereunder in respect of the custody of securities, cash and
other personal property held by, or required to be deposited or pledged with,
the Property Trustee specified hereunder, shall be exercised, solely by the
Property Trustee and not by such co-trustee or separate trustee.

            (b) The rights, powers, duties, and obligations hereby conferred or
imposed upon the Property Trustee in respect of any property covered by such
appointment shall be conferred or imposed upon and exercised or performed by the
Property Trustee or by the Property Trustee and such co-trustee or separate
trustee jointly, as shall be provided in the instrument appointing such
co-trustee or separate trustee, except to the extent that under any law of any
jurisdiction in which any particular act is to be performed, the Property
Trustee shall be incompetent or unqualified to perform such act, in which event
such rights, powers, duties and obligations shall be exercised and performed by
such co-trustee or separate trustee.

                                      -41-
<PAGE>

            (c) The Property Trustee at any time, by an instrument in writing
executed by it, with the written concurrence of the Sponsor, may accept the
resignation of or remove any co-trustee or separate trustee appointed under this
Section, and, in case a Debenture Event of Default under Section 501(1) or
501(2) of the Indenture has occurred and is continuing, the Property Trustee
shall have power to accept the resignation of, or remove, any such co-trustee or
separate trustee without the concurrence of the Sponsor. Upon the written
request of the Property Trustee, the Sponsor shall join with the Property
Trustee in the execution, delivery and performance of all instruments and
agreements necessary or proper to effectuate such resignation or removal. A
successor to any co-trustee or separate trustee so resigning or removed may be
appointed in the manner provided in this Section.

            (d) No co-trustee or separate trustee hereunder shall be personally
liable by reason of any act or omission of the Property Trustee or any other
trustee hereunder.

            (e) The Property Trustee shall not be liable by reason of any act of
a co-trustee or separate trustee.

            (f) Any Act of Holders delivered to the Property Trustee shall be
deemed to have been delivered to each such co-trustee and separate trustee.

      SECTION 8.10 Resignation and Removal of Issuer Trustees; Appointment of
Successor.

            No resignation or removal of any Issuer Trustee and no appointment
of a successor Issuer Trustee pursuant to this Article shall become effective
until the acceptance of appointment by the successor Issuer Trustee in
accordance with the applicable requirements of Section 8.11.

            Subject to the immediately preceding paragraph, an Issuer Trustee
may resign at any time by giving written notice thereof to the Holders. If the
instrument of acceptance by the successor Issuer Trustee required by Section
8.11 shall not have been delivered to the Issuer Trustee within 60 days after
the giving of such notice of resignation, the Issuer Trustee may petition, at
the expense of the Sponsor, any court of competent jurisdiction for the
appointment of a successor Issuer Trustee.

            Unless a Debenture Event of Default under Section 501(1) or 501(2)
of the Indenture shall have occurred and be continuing, any Issuer Trustee may
be removed at any time by Act of the Holder of the Common Securities. If a
Debenture Event of Default under Section 501(1) or 501(2) of the Indenture shall
have occurred and be continuing, the Property Trustee or the Delaware Trustee,
or both of them, may be removed at any time by Act of the Holders of a Majority
in Liquidation Amount of the Capital Securities, delivered to the Issuer Trustee
(in its individual capacity and on behalf of the Issuer Trust). An Administrator
may be removed by the Holder of the Common Securities at any time. In no event
will the Holders of the Capital Securities have a right to vote to appoint,
remove or replace the Administrators.

            If any Issuer Trustee shall resign, be removed or become incapable
of acting as an Issuer Trustee, or if a vacancy shall occur in the office of any
Issuer Trustee for any reason, at a time when no Debenture Event of Default
under Section 501(1) or 501(2) of the Indenture shall have occurred and be
continuing, the Holder of the Common Securities, by Act, shall promptly appoint
a successor Issuer Trustee or Issuer Trustees, and the retiring Issuer Trustee
shall comply

                                      -42-
<PAGE>

with the applicable requirements of Section 8.11. If the Property Trustee or the
Delaware Trustee shall resign, be removed or become incapable of continuing to
act as the Property Trustee or the Delaware Trustee, as the case may be, at a
time when a Debenture Event of Default under Section 501(1) or 501(2) of the
Indenture shall have occurred and be continuing, the Holders of Capital
Securities, by Act of the Holders of a Majority in Liquidation Amount of the
Capital Securities shall promptly appoint a successor Issuer Trustee or
Trustees, and such successor Issuer Trustee or Trustees shall comply with the
applicable requirements of Section 8.11.

            The Property Trustee shall give notice of each resignation and each
removal of an Issuer Trustee and each appointment of a successor Issuer Trustee
to all Holders in the manner provided in Section 10.8 and shall give notice to
the Sponsor and to the Administrators. Each notice shall include the name of the
successor Issuer Trustee and the address of its Corporate Trust Office if it is
the Property Trustee.

            Notwithstanding the foregoing or any other provision of this Trust
Agreement, in the event any Delaware Trustee who is a natural person dies or
becomes, in the opinion of the Sponsor, incompetent or incapacitated, the
vacancy created by such death, incompetence or incapacity may be filled by the
Sponsor (with the successor in each case being a Person who satisfies the
eligibility requirements for a Delaware Trustee set forth in Section 8.7).

      SECTION 8.11 Acceptance of Appointment by Successor.

            In case of the appointment hereunder of a successor Issuer Trustee,
such successor Issuer Trustee so appointed shall execute, acknowledge and
deliver to the Issuer Trust and to the retiring Issuer Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Issuer Trustee shall become effective and such successor Issuer
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Issuer Trustee; but,
on the request of the Sponsor or the successor Issuer Trustee, such retiring
Issuer Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Issuer Trustee all the rights, powers
and trusts of the retiring Issuer Trustee and if the Property Trustee is the
resigning Issuer Trustee shall duly assign, transfer and deliver to the
successor Issuer Trustee all property and money held by such retiring Property
Trustee hereunder.

            In case of the appointment hereunder of a successor Issuer Trustee,
the retiring Issuer Trustee and each such successor Issuer Trustee with respect
to the Trust Securities shall execute, acknowledge and deliver an amendment
hereto wherein each successor Issuer Trustee shall accept such appointment which
(a) shall contain such provisions as shall be necessary or desirable to transfer
and confirm to, and to vest in, each successor Issuer Trustee all the rights,
powers, trusts and duties of the retiring Issuer Trustee with respect to the
Trust Securities and the Issuer Trust, and (b) shall add to or change any of the
provisions of this Trust Agreement as shall be necessary to provide for or
facilitate the administration of the Issuer Trust by more than one Issuer
Trustee, it being understood that nothing herein or in such amendment shall
constitute such Issuer Trustee's co-trustees, and upon the execution and
delivery of such amendment, the resignation or removal of the retiring Issuer
Trustee shall become effective to the extent provided therein and each such
successor Issuer Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Issuer Trustee;

                                      -43-
<PAGE>

but, on request of the Issuer Trust or any successor Issuer Trustee such
retiring Issuer Trustee shall duly assign, transfer and deliver to such
successor Issuer Trustee all Trust Property, all proceeds thereof and money held
by such retiring Issuer Trustee hereunder with respect to the Trust Securities
and the Issuer Trust.

            Upon request of any such successor Issuer Trustee, the Issuer Trust
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Issuer Trustee all such rights, powers and
trusts referred to in this Section 8.11.

            No successor Issuer Trustee shall accept its appointment unless at
the time of such acceptance such successor Issuer Trustee shall be qualified and
eligible under this Article.

      SECTION 8.12 Merger, Conversion, Consolidation or Succession to Business.

            Any Person into which an Issuer Trustee that is not a natural Person
may be merged or converted or with which it may be consolidated, or any Person
resulting from any merger, conversion or consolidation to which such Issuer
Trustee shall be a party, or any Person succeeding to all or substantially all
the corporate trust business of such Issuer Trustee, shall be the successor of
such Issuer Trustee hereunder, provided that such Person shall be otherwise
qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of any of the parties hereto. In case
any Capital Securities shall have been authenticated, but not delivered, by the
Property Trustee then in office, any successor by merger, conversion,
consolidation or sale to such authenticating Property Trustee may adopt such
authentication and deliver the Capital Securities so authenticated with the same
effect as if such successor Property Trustee had itself authenticated such
Capital Securities.

      SECTION 8.13 Preferential Collection of Claims Against Sponsor or Issuer
Trust.

            If and when the Property Trustee shall be or become a creditor of
the Sponsor or the Issuer Trust (or any other obligor upon the Capital
Securities), the Property Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Sponsor or
the Issuer Trust (or any such other obligor).

      SECTION 8.14 Trustee May File Proofs of Claim.

            In case of any judicial proceeding relative to the Issuer Trust or
any other obligor upon the Trust Securities or the property of the Issuer Trust
or of such other obligor or their creditors, the Property Trustee (irrespective
of whether any Distributions on the Trust Securities shall then be due and
payable and irrespective of whether the Property Trustee shall have made any
demand on the Issuer Trust for the payment of any past due Distributions) shall
be entitled and empowered, to the fullest extent permitted by law, by
intervention in such proceeding or otherwise to take any and all actions
authorized:

            (a) to file and prove a claim for the whole amount of any
Distributions owing and unpaid in respect of the Trust Securities and to file
such other papers or documents as may be necessary or advisable in order to have
the claims of the Property Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Property Trustee, its
agents and counsel) and of the Holders allowed in such judicial proceeding, and

                                      -44-

<PAGE>

            (b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Property Trustee and, in the event the
Property Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Property Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Property Trustee, its
agents and counsel, and any other amounts due the Property Trustee.

            Nothing herein contained shall be deemed to authorize the Property
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or compensation affecting
the Trust Securities or the rights of any Holder thereof or to authorize the
Property Trustee to vote in respect of the claim of any Holder in any such
proceeding; provided, however, that the Trustee may, on behalf of the Holders,
vote for the election of a trustee in bankruptcy or similar official and be a
member of a creditors' or other similar committee.

      SECTION 8.15 Reports by Property Trustee.

            The Property Trustee shall transmit to Holders such reports
concerning the Property Trustee and its actions under this Trust Agreement as
may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto.

            A copy of each such report shall, at the time of such transmission
to Holders, be filed by the Property Trustee with each stock exchange, Nasdaq or
such other interdealer quotation system or self-regulatory organization upon
which any Capital Securities are listed, with the Commission and with the
Sponsor.

      SECTION 8.16 Reports to the Property Trustee.

            Each of the Sponsor and the Administrators on behalf of the Issuer
Trust shall provide to the Property Trustee such documents, reports and
information as required by Section 314(a)(1)-(3) of the Trust Indenture Act (if
any) and the compliance certificate required by Section 314(a)(4) of the Trust
Indenture Act in the form, in the manner and at the times required by Section
314 of the Trust Indenture Act.

      SECTION 8.17 Evidence of Compliance with Conditions Precedent.

            Each of the Sponsor and the Administrators on behalf of the Issuer
Trust shall provide to the Property Trustee such evidence of compliance with any
conditions precedent, if any, provided for in this Trust Agreement that relate
to any of the matters set forth in Section 314(c) of the Trust Indenture Act.
Any certificate or opinion required to be given pursuant to Section 314(c)(1)
shall be given in the form of an Officers' Certificate.

                                      -45-

<PAGE>

      SECTION 8.18 Number of Issuer Trustees.

            (a) The number of Issuer Trustees shall be two. The Property Trustee
and the Delaware Trustee may be the same Person if the Property Trustee meets
the applicable requirements.

            (b) If an Issuer Trustee ceases to hold office for any reason, a
vacancy shall occur. The vacancy shall be filled with an Issuer Trustee
appointed in accordance with Section 8.10.

            (c) The death, resignation, retirement, removal, bankruptcy,
incompetence or incapacity to perform the duties of an Issuer Trustee shall not
operate to dissolve, terminate or annul the Issuer Trust or terminate this Trust
Agreement.

      SECTION 8.19 Delegation of Power.

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

            (b) The Administrators shall have power to delegate from time to
time to such of their number or to the Sponsor the doing of such things and the
execution of such instruments either in the name of the Issuer Trust or the
names of the Administrators or otherwise as the Administrators may deem
expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of this Trust Agreement.

      SECTION 8.20 Appointment and Removal of Administrators.

            (a) The Administrators shall initially be [_____], [_____] and
[_____] and their successors shall be appointed by the Holder of the Common
Securities. The Holder of the Common Securities can increase or decrease the
number of Administrators at any time. The Administrators may resign or be
removed by the Holder of the Common Securities at any time. Upon any resignation
or removal, the Holder of the Common Securities shall appoint a successor
Administrator. Each successor Administrator shall execute this Trust Agreement
thereby agreeing to comply with, and be legally bound by, all of the terms,
conditions and provisions of this Trust Agreement.

            (b) Whenever a vacancy in the number of Administrators shall occur,
until such vacancy is filled by the appointment of an Administrator in
accordance with this Section 8.20, the Administrators in office, regardless of
their number (and notwithstanding any other provision of this Trust Agreement),
shall have all the powers granted to the Administrators and shall discharge all
the duties imposed upon the Administrators by this Trust Agreement.

            (c) Notwithstanding the foregoing or any other provision of this
Trust Agreement, in the event any Administrator who is a natural person dies or
becomes, in the opinion of the Holder of the Common Securities, incompetent, or
incapacitated, the vacancy created by such death, incompetence or incapacity may
be filled by the remaining Administrators, if there are at least two of them
prior to such vacancy, and by the Sponsor, if there are not two such
Administrators immediately prior to such vacancy (with the successor in each
case being a

                                      -46-

<PAGE>

Person who satisfies the eligibility requirement for Administrators, as the case
may be, set forth in Section 8.7).

                                   ARTICLE IX

                       TERMINATION, LIQUIDATION AND MERGER

      SECTION 9.1 Termination Upon Expiration Date.

            Unless earlier terminated, the Issuer Trust shall automatically
dissolve and terminate on _________, ____ (the "Expiration Date"), and the Trust
Property shall be distributed in accordance with Section 9.4.

      SECTION 9.2 Early Termination.

            The first to occur of any of the following events is an "Early
Termination Event" the occurrence of which shall cause the dissolution of the
Issuer Trust:

            (a) the occurrence of a Bankruptcy Event in respect of, or the
dissolution or liquidation of, the Sponsor;

            (b) the written direction to the Property Trustee from all the
Holders of the Common Securities at any time to terminate the Issuer Trust and
to distribute the Junior Subordinated Debentures to Holders in exchange for the
Capital Securities (which direction is optional and wholly within the discretion
of the Holders of the Common Securities);

            (c) the redemption of all of the Capital Securities in connection
with the redemption of all the Junior Subordinated Debentures; and

            (d) the entry of an order for dissolution of the Issuer Trust by a
court of competent jurisdiction.

      SECTION 9.3 Termination.

            The respective obligations and responsibilities of the Issuer
Trustees and the Issuer Trust created and continued hereby shall terminate upon
the latest to occur of the following: (a) the distribution by the Property
Trustee to Holders of all amounts required to be distributed hereunder upon the
liquidation of the Issuer Trust pursuant to Section 9.4, or upon the redemption
of all of the Trust Securities pursuant to Section 4.2; (b) the payment of any
expenses owed by the Issuer Trust; and (c) the discharge of all administrative
duties of the Administrators, including the performance of any tax reporting
obligations with respect to the Issuer Trust or the Holders.

      SECTION 9.4 Liquidation.

            (a) If an Early Termination Event specified in clause (a), (b) or
(d) of Section 9.2 occurs or upon the Expiration Date, the Issuer Trust shall be
wound up and liquidated by the Issuer Trustees as expeditiously as the Issuer
Trustees determine to be possible by distributing, after satisfaction of
liabilities to creditors of the Issuer Trust as provided by applicable law, to

                                      -47-

<PAGE>

each Holder a Like Amount of Junior Subordinated Debentures, subject to Section
9.4(d). Notice of liquidation shall be given by the Property Trustee by
first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days
prior to the Liquidation Date to each Holder of Trust Securities at such
Holder's address appearing in the Securities Register. All such notices of
liquidation shall:

                  (i) state the Liquidation Date;

                  (ii) state that, from and after the Liquidation Date, the
            Trust Securities will no longer be deemed to be Outstanding and any
            Trust Securities Certificates not surrendered for exchange will be
            deemed to represent a Like Amount of Junior Subordinated Debentures;
            and

                  (iii) provide such information with respect to the procedures
            by which Holders may exchange Trust Securities Certificates for
            Junior Subordinated Debentures, or if Section 9.4(d) applies,
            receive a Liquidation Distribution, as the Administrators or the
            Property Trustee shall deem appropriate.

            (b) Except where Section 9.2(c) or 9.4(d) applies, in order to
effect the liquidation of the Issuer Trust and distribution of the Junior
Subordinated Debentures to Holders, the Property Trustee, either itself acting
as exchange agent or through the appointment of a separate exchange agent, shall
establish a record date for such distribution (which shall be not more than 30
days prior to the Liquidation Date) and shall establish such procedures as it
shall deem appropriate to effect the distribution of Junior Subordinated
Debentures in exchange for the Outstanding Trust Securities Certificates.

            (c) Except where Section 9.2(c) or 9.4(d) applies, after the
Liquidation Date, (i) the Trust Securities will no longer be deemed to be
Outstanding, (ii) certificates representing a Like Amount of Junior Subordinated
Debentures will be issued to Holders of Trust Securities Certificates, upon
surrender of such Certificates to the exchange agent for exchange, (iii) the
Sponsor shall use its best efforts to have the Junior Subordinated Debentures
listed on the national stock exchange, Nasdaq or on such other exchange,
interdealer quotation system or self-regulatory organization as the Capital
Securities are then listed, (iv) any Trust Securities Certificates not so
surrendered for exchange will be deemed to represent a Like Amount of Junior
Subordinated Debentures bearing accrued and unpaid interest in an amount equal
to the accumulated and unpaid Distributions on such Trust Securities
Certificates until such Certificates are so surrendered (and until such
Certificates are so surrendered, no payments of interest or principal will be
made to Holders of Trust Securities Certificates with respect to such Junior
Subordinated Debentures) and (v) all rights of Holders holding Trust Securities
will cease, except the right of such Holders to receive Junior Subordinated
Debentures upon surrender of Trust Securities Certificates.

            (d) If, notwithstanding the other provisions of this Section 9.4,
whether because of an order for dissolution entered by a court of competent
jurisdiction or otherwise, distribution of the Junior Subordinated Debentures in
the manner provided herein is determined by the Property Trustee not to be
practical, or if any Early Termination Event specified in Section 9.2(c) occurs,
the Trust Property shall be liquidated, and the Issuer Trust shall be dissolved,
wound-up and terminated by the Property Trustee in such manner as the Property
Trustee determines. In such

                                      -48-

<PAGE>

event, on the date of the dissolution, winding-up or other termination of the
Issuer Trust, unless the Trust Securities have been redeemed or are to be
redeemed on such date pursuant to Article IV, Holders will be entitled to
receive out of the assets of the Issuer Trust available for distribution to
Holders, after satisfaction of liabilities to creditors of the Issuer Trust as
provided by applicable law, an amount equal to the Liquidation Amount per Trust
Security plus accumulated and unpaid Distributions thereon to the date of
payment (such amount being the "Liquidation Distribution"). If, upon any such
dissolution, winding-up or termination the Liquidation Distribution can be paid
only in part because the Issuer Trust has insufficient assets available to pay
in full the aggregate Liquidation Distribution, then, subject to the next
succeeding sentence, the amounts payable by the Issuer Trust on the Trust
Securities shall be paid on a pro rata basis (based upon Liquidation Amounts).
The Holders of the Common Securities will be entitled to receive Liquidation
Distributions upon any such dissolution, winding-up or termination pro rata
(determined as aforesaid) with Holders of Capital Securities, except that, if a
Debenture Event of Default specified in Section 501(1) or 501(2) of the
Indenture has occurred and is continuing, the Capital Securities shall have a
priority over the Common Securities as provided in Section 4.3.

      SECTION 9.5 Mergers, Consolidations, Amalgamations or Replacements of the
Issuer Trust.

            The Issuer Trust may not merge with or into, consolidate,
amalgamate, or be replaced by, or convey, transfer or lease its properties and
assets substantially as an entirety to, any corporate or other body, except
pursuant to this Article IX. At the request of the Holders of the Common
Securities, and with the consent of the Administrators, the Issuer Trust may
merge with or into, consolidate, amalgamate, or be replaced by or convey,
transfer or lease its properties and assets substantially as an entirety to a
trust organized as such under the laws of any State; provided, that (i) such
successor entity either (a) expressly assumes all of the obligations of the
Issuer Trust with respect to the Capital Securities or (b) substitutes for the
Capital Securities other securities having substantially the same terms as the
Capital Securities (the "Successor Capital Securities") so long as the Successor
Capital Securities have the same priority as the Capital Securities with respect
to distributions and payments upon liquidation, redemption and otherwise, (ii) a
trustee of such successor entity possessing the same powers and duties as the
Property Trustee is appointed to hold the Junior Subordinated Debentures, (iii)
such merger, consolidation, amalgamation, replacement, conveyance, transfer or
lease does not adversely affect in any material respect the rights, preferences
and privileges of the holders of the Capital Securities (including any Successor
Capital Securities), (iv) such successor entity has a purpose substantially
identical to that of the Issuer Trust, (v) prior to such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, the Sponsor has
received an Opinion of Counsel to the effect that (a) such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease does not
adversely affect in any material respect the contractual rights, preferences and
privileges of the Holders of the Capital Securities (including any Successor
Capital Securities), and (b) following such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease, neither the Issuer Trust nor such
successor entity will be required to register as an "investment company" under
the Investment Company Act, and (vi) the Sponsor or any permitted transferee
owns all of the Common Securities of such successor entity and guarantees the
obligations of such successor entity under the Successor Capital Securities at
least to the extent provided by the Guarantee Agreement. Notwithstanding the
foregoing, the Issuer Trust shall not, except with the consent of Holders of all
the Capital

                                      -49-

<PAGE>

Securities, 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 other entity or permit any other entity to consolidate, amalgamate, merge
with or into, or replace it if such consolidation, amalgamation, merger,
replacement, conveyance, transfer or lease would cause the Issuer Trust or the
successor entity to be taxable as a corporation for United States federal income
tax purposes. Any merger or similar agreement shall be executed by the
Administrators on behalf of the Issuer Trust.

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

      SECTION 10.1 Limitation of Rights of Holders.

            Except as set forth in Section 9.2, the death, incapacity,
dissolution, termination or bankruptcy of any person having an interest,
beneficial or otherwise, in Trust Securities shall not operate to terminate this
Trust Agreement, nor entitle the legal representatives, successors or heirs of
such Person or any Holder for such person, to claim an accounting, take any
action or bring any proceeding in any court for a partition or winding-up of the
arrangements contemplated hereby, nor otherwise affect the rights, obligations
and liabilities of the parties hereto or any of them.

      SECTION 10.2 Amendment.

            (a) This Trust Agreement may be amended from time to time by the
Property Trustee and the Holder of the Common Securities, without the consent of
any Holder of the Capital Securities, (i) to cure any ambiguity, correct or
supplement any provision herein that may be inconsistent with any other
provision herein, or to make any other provisions with respect to matters or
questions arising under this Trust Agreement, which shall not be inconsistent
with the other provisions of this Trust Agreement, or (ii) to modify, eliminate
or add to any provisions of this Trust Agreement to such extent as shall be
necessary to ensure that the Issuer Trust will not be taxable as a corporation
for United States federal income tax purposes at all times that any Trust
Securities are outstanding or to ensure that the Issuer Trust will not be
required to register as an "investment company" under the Investment Company
Act; provided, however, that in the case of either clause (i) or clause (ii)
such action shall not adversely affect in any material respect the interests of
any Holder, and any such amendment of this Trust Agreement shall become
effective when notice thereof is given to the Holders.

            (b) Except as provided in Section 10.2(c), any provision of this
Trust Agreement may be amended by the Property Trustee and the Holders of all of
the Common Securities with (i) the consent of Holders of at least a Majority in
Liquidation Amount of the Capital Securities and (ii) receipt by the Issuer
Trustees of an Opinion of Counsel to the effect that such amendment or the
exercise of any power granted to the Issuer Trustees in accordance with such
amendment will not cause the Issuer Trust to be taxable as a corporation for
United States federal income tax purposes or affect the Issuer Trust's exemption
from status as an "investment company" under the Investment Company Act.

                                      -50-

<PAGE>

            (c) In addition to and notwithstanding any other provision in this
Trust Agreement, without the consent of each affected Holder (such consent being
obtained in accordance with Section 6.3 or 6.6), this Trust Agreement may not be
amended to (i) change the amount or timing of any Distribution on the Trust
Securities or otherwise adversely affect in any material respect the amount of
any Distribution required to be made in respect of the Trust 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; and notwithstanding any
other provision herein, without the unanimous consent of the Holders (such
consent being obtained in accordance with Section 6.3 or 6.6), this Section
10.2(c) may not be amended.

            (d) Notwithstanding any other provisions of this Trust Agreement, no
Issuer Trustee shall enter into or consent to any amendment to this Trust
Agreement that would cause the Issuer Trust to fail or cease to qualify for the
exemption from status as an "investment company" under the Investment Company
Act or to be taxable as a corporation for United States federal income tax
purposes.

            (e) Notwithstanding anything in this Trust Agreement to the
contrary, without the consent of the Sponsor and the Administrators, this Trust
Agreement may not be amended in a manner that imposes any additional obligation
on the Sponsor or the Administrators.

            (f) In the event that any amendment to this Trust Agreement is made,
the Administrators or the Property Trustee shall promptly provide to the Sponsor
a copy of such amendment.

            (g) Neither the Property Trustee nor the Delaware Trustee shall be
required to enter into any amendment to this Trust Agreement that affects its
own rights, duties or immunities under this Trust Agreement. The Property
Trustee shall be entitled to receive an Opinion of Counsel and an Officers'
Certificate stating that any amendment to this Trust Agreement is permitted by
this Trust Agreement.

            (h) Any amendments to this Trust Agreement shall become effective
when notice of such amendment is given to the Holders of the Trust Securities.

      SECTION 10.3 Separability.

            In case any provision in this Trust Agreement or in the Trust
Securities Certificates shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

      SECTION 10.4 Governing Law.

            THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE
HOLDERS, THE ISSUER TRUST, THE SPONSOR, THE ISSUER TRUSTEES AND THE
ADMINISTRATORS WITH RESPECT TO THIS TRUST AGREEMENT AND THE TRUST SECURITIES
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
DELAWARE 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. THE

                                      -51-

<PAGE>

PROVISIONS OF SECTION 3540 OF TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO
THE ISSUER TRUST.

      SECTION 10.5 Payments Due on Non-Business Day.

            If the date fixed for any payment on any Trust Security shall be a
day that is not a Business Day, then such payment need not be made on such date
but may be made on the next succeeding day that is a Business Day (except as
otherwise provided in Sections 4.1(a) and 4.2(d)), with the same force and
effect as though made on the date fixed for such payment, and no Distributions
shall accumulate on such unpaid amount for the period after such date.

      SECTION 10.6 Successors.

            This Trust Agreement shall be binding upon and shall inure to the
benefit of any successor to the Sponsor, the Issuer Trust, the Administrators
and any Issuer Trustee, including any successor by operation of law. Except in
connection with a consolidation, merger or sale involving the Sponsor that is
permitted under Article VIII of the Indenture and pursuant to which the assignee
agrees in writing to perform the Sponsor's obligations hereunder, the Sponsor
shall not assign its obligations hereunder.

      SECTION 10.7 Headings.

            The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction of this Trust
Agreement.

      SECTION 10.8 Reports, Notices and Demands.

            Any report, notice, demand or other communication that by any
provision of this Trust Agreement is required or permitted to be given or served
to or upon any Holder or the Sponsor may be given or served in writing by
deposit thereof, first class postage prepaid, in the United States mail
addressed, (a) in the case of a Holder of Capital Securities, to such Holder as
such Holder's name and address may appear on the Securities Register; and (b) in
the case of the Holder of the Common Securities or the Sponsor, to American
International Group, Inc., 70 Pine Street, New York, NY 10270, Attention:
Secretary, or to such other address as may be specified in a written notice by
the Holder of the Common Securities to the Property Trustee. Such notice, demand
or other communication to or upon a Holder shall be deemed to have been
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid. Such notice, demand or other
communication to or upon the Sponsor shall be deemed to have been sufficiently
given or made only upon actual receipt of the writing by the Sponsor.

            Any notice, demand or other communication that by any provision of
this Trust Agreement is required or permitted to be given or served to or upon
the Property Trustee, the Delaware Trustee, the Administrators, or the Issuer
Trust shall be given in writing addressed (until another address is published by
the Issuer Trust) to such Person as follows: (a) with respect to the Property
Trustee to The Bank of New York, 101 Barclay Street, New York, N.Y., 10286,
Attention: Corporate Trust Administration; (b) with respect to the Delaware
Trustee to The Bank of New York (Delaware), White Clay Center, Route 273,
Newark, DE 19711, Attention: Corporate Trust Administration; (c) with respect to
the Administrators, to them at the address above for notices to the Sponsor,
marked "Attention: Administrators of the AIG Capital

                                      -52-

<PAGE>

Trust ( )"; and (d) with respect to the Issuer Trust, to its principal office
specified in Section 2.2, with a copy to the Property Trustee. Such notice,
demand or other communication to or upon the Issuer Trust, the Property Trustee,
the Delaware Trustee or the Administrators shall be deemed to have been
sufficiently given or made only upon actual receipt of the writing by the Issuer
Trust, the Property Trustee, the Delaware Trustee or such Administrator, as the
case may be.

      SECTION 10.9 Agreement Not to Petition.

            Each of the Issuer Trustees, the Administrators and the Sponsor
agree for the benefit of the Holders that, until at least one year and one day
after the Issuer Trust has been terminated in accordance with Article IX, they
shall not file, or join in the filing of, a petition against the Issuer Trust
under any bankruptcy, insolvency, reorganization or other similar law (including
the United States Bankruptcy Code) (collectively, "Bankruptcy Laws") or
otherwise join in the commencement of any proceeding against the Issuer Trust
under any Bankruptcy Law. In the event the Sponsor takes action in violation of
this Section 10.9, the Property Trustee agrees, for the benefit of Holders, that
at the expense of the Sponsor, it shall file an answer with the bankruptcy court
or otherwise properly contest the filing of such petition by the Sponsor against
the Issuer Trust or the commencement of such action and raise the defense that
the Sponsor has agreed in writing not to take such action and should be estopped
and precluded therefrom and such other defenses, if any, as counsel for the
Issuer Trustee or the Issuer Trust may assert. If any Issuer Trustee or
Administrator takes action in violation of this Section 10.9, the Sponsor
agrees, for the benefit of the Holders, that at its expense, it shall file an
answer with the bankruptcy court or otherwise properly contest the filing of
such petition by such Person against the Sponsor or the commencement of such
action and raise the defense that such Person has agreed in writing not to take
such action and should be estopped and precluded therefrom and such other
defenses, if any, as counsel for the Issuer Trustee or the Issuer Trust may
assert. The provisions of this Section 10.9 shall survive the termination of
this Trust Agreement.

      SECTION 10.10 Trust Indenture Act; Conflict with Trust Indenture Act.

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

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

            (c) If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act which is required under such Act to be a
part of and govern this Trust Agreement, the latter provision shall control. If
any provision of this Trust Agreement modifies or excludes any provision of the
Trust Indenture Act which may be so modified or excluded, the latter provision
shall be deemed to apply to this Trust Agreement as so modified or to be
excluded, as the case may be.

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

                                      -53-

<PAGE>

            (e) The disclosure of information as to the names and addresses of
the Holders of Trust Securities in accordance with Section 312 of the Trust
Indenture Act, regardless of the source from which such information was derived,
shall not be deemed to be a violation of any existing law or any law hereafter
enacted which does not specifically refer to Section 312 of the Trust Indenture
Act, nor shall the Issuer Trust, the Sponsor or the Property Trustee be held
accountable by reason of mailing or distribution of information made pursuant to
Section 312(b) of the Trust Indenture Act.

      SECTION 10.11 Acceptance of Terms of Trust Agreement, Guarantee and
Indenture.

            THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST
THEREIN BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY
SIGNATURE OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL
ACCEPTANCE BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN SUCH
TRUST SECURITY OF ALL THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT, THE
GUARANTEE AGREEMENT AND THE INDENTURE, AND THE AGREEMENT TO THE SUBORDINATION
PROVISIONS AND OTHER TERMS OF THE GUARANTEE AGREEMENT AND THE INDENTURE, AND
SHALL CONSTITUTE THE AGREEMENT OF THE ISSUER TRUST, SUCH HOLDER AND SUCH OTHERS
THAT THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT SHALL BE BINDING,
OPERATIVE AND EFFECTIVE AS BETWEEN THE ISSUER TRUST AND SUCH HOLDER AND SUCH
OTHERS.

      SECTION 10.12 Counterparts.

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

      SECTION 10.13 Intention of the Parties.

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

                                      -54-

<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first written above.

                                  AMERICAN INTERNATIONAL GROUP, INC.,
                                  as Sponsor

                                  By:__________________________________________
                                      Name:
                                      Title:

                                  THE BANK OF NEW YORK,
                                  as Property Trustee, and not in its individual
                                  capacity

                                  By:__________________________________________
                                      Name:
                                      Title:

                                  THE BANK OF NEW YORK (DELAWARE),
                                  as Delaware Trustee, and not
                                  in its individual capacity

                                  By:__________________________________________
                                      Name:
                                      Title:

                                _______________________________________________
                                  Name:
                                  Title:  Administrator

                                _______________________________________________
                                  Name:
                                  Title:  Administrator

                                _______________________________________________
                                  Name:
                                  Title:  Administrator

<PAGE>

                                                                       Exhibit A

                             [CERTIFICATE OF TRUST]

                                      A-1

<PAGE>

                                                                       Exhibit B

                   [FORM OF CERTIFICATE DEPOSITORY AGREEMENT]

                                      B-1

<PAGE>

                                                                       Exhibit C

                      FORM OF COMMON SECURITIES CERTIFICATE

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THIS CERTIFICATE IS NOT
TRANSFERABLE EXCEPT TO THE SPONSOR OR AN AFFILIATE OF THE SPONSOR IN COMPLIANCE
WITH SECTION 5.11 OF THE TRUST AGREEMENT

     Certificate Number                              Number of Common Securities

     C-___

                    Certificate Evidencing Common Securities

                                       of

                                AIG Capital Trust

                            _____% Common Securities
                  (Liquidation Amount $25 per Common Security)

      AIG Capital Trust ( ), a statutory trust created under the laws of the
State of Delaware (the "Issuer Trust"), hereby certifies that American
International Group, Inc. (the "Holder") is the registered owner of _________
(_______) common securities of the Issuer Trust representing common undivided
beneficial interests in the assets of the Issuer Trust and designated the _____%
Common Securities (liquidation amount $25 per Common Security) (the "Common
Securities"). Except in accordance with Section 5.11 of the Trust Agreement (as
defined below) the Common Securities are not transferable and, to the fullest
extent permitted by applicable law, any attempted transfer hereof other than in
accordance therewith shall be void. The designations, rights, privileges,
restrictions, preferences and other terms and provisions of the Common
Securities are set forth in, and this certificate and the Common Securities
represented hereby are issued and shall in all respects be subject to the terms
and provisions of, the Amended and Restated Trust Agreement of the Issuer Trust,
dated as of __________, ____, as the same may be amended from time to time (the
"Trust Agreement"), among American International Group, Inc., as Sponsor, The
Bank of New York, as Property Trustee, The Bank of New York (Delaware), as
Delaware Trustee, three individuals selected by the holders of the Common
Securities to act as administrators with respect to the Issuer Trust and the
holders of Trust Securities, including the designation of the terms of the
Common Securities as set forth therein. The Issuer Trust will furnish a copy of
the Trust Agreement to the Holder without charge upon written request to the
Issuer Trust at its principal place of business or registered office.

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

      THIS COMMON SECURITIES CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICT OF LAWS OF THE STATE OF

                                       C-1
<PAGE>

DELAWARE OR ANY OTHER JURISDICTION THAT WOULD CALL FOR THE APPLICATION OF THE
LAW OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

      Terms used but not defined herein have the meanings set forth in the Trust
Agreement.

                                      C-2
<PAGE>

      IN WITNESS WHEREOF, one of the Administrators of the Issuer Trust has
executed this certificate this ____ day of __________.

                              AIG CAPITAL TRUST ( )

                              By:________________________________________
                                   Name:
                                   Title: Administrator

                                       C-3
<PAGE>

                                                                       Exhibit D

                            FORM OF EXPENSE AGREEMENT

                    AGREEMENT AS TO EXPENSES AND LIABILITIES

      AGREEMENT AS TO EXPENSES AND LIABILITIES, dated as of ________, ____,
between American International Group, Inc., a Delaware corporation, as Sponsor
(the "Sponsor"), and AIG Capital Trust ( ), a Delaware statutory trust (the
"Issuer Trust")

      WHEREAS, the Issuer Trust intends to issue its Common Securities (the
"Common Securities") to and acquire Junior Subordinated Debentures from the
Sponsor, and to issue and sell [__]% Capital Securities, (the "Capital
Securities") with such powers, preferences and special rights and restrictions
as are set forth in the Amended and Restated Trust Agreement of the Issuer
Trust, dated as of ___________, as the same may be amended from time to time
(the "Trust Agreement") among the Sponsor, The Bank of New York, as Property
Trustee, The Bank of New York (Delaware), as Delaware Trustee, three individuals
selected by the holders of the Common Securities to act as administrators with
respect to the Issuer Trust and the holders of Trust Securities;

      WHEREAS, the Sponsor will own all of the Common Securities of the Issuer
Trust and will issue the Junior Subordinated Debentures;

      WHEREAS, capitalized terms used but not defined herein have the meanings
set forth in the Trust Agreement;

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

                                    ARTICLE I

      SECTION 1.1. Guarantee by the Sponsor. Subject to the terms and conditions
hereof, the Sponsor hereby unconditionally guarantees to each person or entity
to whom the Issuer Trust is now or hereafter becomes indebted or liable (the
"Beneficiaries") the full payment, when and as due, of any and all Obligations
(as hereinafter defined) to such Beneficiaries. As used herein, "Obligations"
means any costs, expenses or liabilities of the Issuer Trust, other than
obligations of the Issuer Trust to pay to holders of any Trust Securities the
amounts due such holders pursuant to the terms of the Trust Securities. This
Agreement is intended to be for the benefit of, and to be enforceable by, all
such Beneficiaries, whether or not such Beneficiaries have received notice
hereof.

      SECTION 1.2. Subordination of Guarantee. The guarantee and other
liabilities and obligations of the Sponsor under this Agreement shall constitute
unsecured obligations of the Sponsor and shall rank subordinate and junior in
right of payment to all Senior Indebtedness (as defined in the Indenture) of the
Sponsor to the extent and in the manner set forth in the Indenture with respect
to the Junior Subordinated Debentures, and the provisions of Article XIV of the
Indenture will apply, mutatis mutandis, to the obligations of the Sponsor
hereunder. The

                                      D-1
<PAGE>

obligations of the Sponsor hereunder do not constitute Senior Indebtedness (as
defined in the Indenture) of the Sponsor.

      SECTION 1.3. Changes in Obligations and Agreements Relating thereto;
Waiver of Certain Notices. The Sponsor agrees that the Beneficiaries may at any
time and from time to time, without notice to or further consent of the Sponsor,
extend the time of payment by the Issuer Trust of all or any portion of the
Obligations or for the performance of any other obligation under, arising out
of, or in connection with, the Obligations. The Sponsor waives notice of
acceptance of this Agreement and of any Obligation to which it applies or may
apply, presentment, demand for payment, notice of dishonor and protest.

      SECTION 1.4. No Waiver; Cumulative Rights. No failure on the part of
Beneficiaries, and no delay in exercising, any right, remedy or power hereunder
preclude any other future right, remedy or power hereby granted to the
Beneficiaries with respect to the Obligations. Each and every right, remedy and
power hereby granted to the Beneficiaries or allowed by law or other agreement
shall be cumulative and not exclusive of any other, and may be exercised by the
Beneficiaries from time to time.

      SECTION 1.5. Nature of Guarantee. The Sponsor's obligations hereunder
shall not be affected by any circumstance relating to the Obligations that might
constitute a legal or equitable discharge of or defense to the Sponsor not
available to the Issuer Trust. The Sponsor agrees that the Beneficiaries may
resort to the Sponsor for payment of the Obligations whether or not the
Beneficiaries shall have proceeded against the Issuer Trust. The Beneficiaries
shall not be obligated to file any claim relating to the Obligations in the
event that the Issuer Trust becomes subject to a bankruptcy, reorganization or
similar proceeding (other than the dissolution of the Issuer Trust in accordance
with the terms thereof), and the failure of the Beneficiaries to so file shall
not affect the Sponsor's obligations hereunder. This Guarantee shall remain in
full force and effect and shall be binding on the Sponsor, its successors and
assigns until upon the dissolution of the Issuer Trust; provided, however, that
this Agreement shall continue to be effective or shall be reinstated, as the
case may be, if at any time any holder of Capital Securities or any Beneficiary
must restore payment of any sums paid under the Capital Securities, under any
Obligation, under the Guarantee Agreement, dated the date hereof, by the Sponsor
and The Bank of New York, as guarantee trustee, or under this Agreement for any
reason whatsoever. In the event that any payment to the Beneficiaries in respect
of the Obligations is rescinded or must otherwise be returned for any reason
whatsoever, the Sponsor shall remain liable hereunder with respect to such
Obligations as if such payments had not been made. The Sponsor reserves the
right to (a) set-off against any payment owing hereunder any amounts owing by
the Beneficiaries to the Issuer Trust and (b) assert defenses which the Issuer
Trust may have to payment of the Obligations other than defenses arising from
the bankruptcy or insolvency of the Issuer Trust and other defenses expressly
waived hereby.

      SECTION 1.6. Enforcement. A Beneficiary may enforce this Agreement
directly against the Sponsor and the Sponsor waives any right or remedy to
require that any action be brought against the Issuer Trust or any other person
or entity before proceeding against the Sponsor.

      SECTION 1.7. Subrogation. The Sponsor shall be subrogated to all rights
(if any) of any Beneficiary against the Issuer Trust in respect of any amounts
paid to the Beneficiaries by the

                                       D-2
<PAGE>

Sponsor under this Agreement; provided, however, that the Sponsor shall not
(except to the extent required by mandatory provisions of law) be entitled to
enforce or exercise any rights that it may acquire by way of subrogation or any
indemnity, reimbursement or other agreement, in all cases as a result of payment
under this Agreement, if, at the time of any such payment, any amounts are due
and unpaid under this Agreement.

                                   ARTICLE II

      SECTION 2.1. Assignment. This Agreement may not be assigned or the
obligations hereunder delegated by either party hereto without the consent of
the other, and any purported assignment or delegation without such consent shall
be void; except that upon any transfer of the Common Securities, this Agreement
shall be assigned and delegated by the Sponsor to its successor with such
transfer without any action by either party hereto.

      SECTION 2.2. Binding Effect. All guarantees and agreements contained in
this Agreement shall bind the successors, assigns, receivers, trustees and
representatives of the Sponsor and shall inure to the benefit of the
Beneficiaries.

      SECTION 2.3. Amendment. So long as there remains any Beneficiary or any
Capital Securities are Outstanding, this Agreement shall not be modified or
amended in any manner adverse to such Beneficiary or to the holders of the
Capital Securities without the consent of such Beneficiary or the holders of the
Capital Securities, as the case may be.

      SECTION 2.4. Notices. Any notice, request or other communication required
or permitted to be given hereunder shall be given in writing and by first-class
mail, postage prepaid, addressed as follows (and if so given, shall be deemed
given when received):

                  AIG Capital Trust (  )
                  c/o American International Group, Inc.
                  70 Pine Street
                  New York, NY 10270
                  Attention: Secretary

                  With a copy to:

                  Robert W. Reeder, Esq.
                  Sullivan & Cromwell LLP
                  125 Broad Street
                  New York, NY 10004

                  The Bank of New York, as Property Trustee of
                     AIG Capital Trust (  )
                  101 Barclay Street
                  New York, NY 10286
                  Attention: Corporate Trust Administration

                                       D-3
<PAGE>

      SECTION 2.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                                      D-4

<PAGE>

      THIS AGREEMENT is executed as of the day and year first above written.

                                          AMERICAN INTERNATIONAL GROUP,
                                                INC.

                                          By: __________________________________
                                          Name:
                                          Title:

                                          AIG CAPITAL TRUST (   )

                                          By: __________________________________
                                          Name:
                                          Title: Administrator

                                       D-5

<PAGE>

                                                                       Exhibit E

                     FORM OF CAPITAL SECURITIES CERTIFICATE

      [IF THE CAPITAL SECURITIES CERTIFICATE IS TO BE EVIDENCED BY A BOOK-ENTRY
CAPITAL SECURITIES CERTIFICATE, INSERT -- THIS CAPITAL SECURITIES CERTIFICATE IS
A BOOK-ENTRY CAPITAL SECURITIES CERTIFICATE WITHIN THE MEANING OF THE TRUST
AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE OF A DEPOSITARY. THIS CAPITAL SECURITIES CERTIFICATE IS
EXCHANGEABLE FOR CAPITAL SECURITIES CERTIFICATES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT AND MAY NOT BE TRANSFERRED BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT.

      UNLESS THIS CAPITAL SECURITIES CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
TO AIG CAPITAL TRUST ( ) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CAPITAL SECURITY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF SUCH NOMINEE AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO SUCH ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO A PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST
HEREIN.]

                                      E-1

<PAGE>

Certificate Number                                  Number of Capital Securities

Cusip No. _____________

                   $_____________ Aggregate Liquidation Amount
                    Certificate Evidencing Capital Securities
                                       of
                                AIG Capital Trust
     _____% Capital Securities (Liquidation Amount $25 Per Capital Security)

      AIG Capital Trust ( ), a statutory trust created under the laws of the
State of Delaware (the "Issuer Trust"), hereby certifies that___________________
(the "Holder") is the registered owner of $___________ in aggregate liquidation
amount of capital securities of the Issuer Trust representing an undivided
preferred beneficial interest in the assets of the Issuer Trust and designated
the AIG Capital Trust ( ) _____ Capital Securities (liquidation amount $25 per
Capital Security) (the "Capital Securities"). The Capital Securities are
transferable on the books and records of the Issuer Trust, in person or by a
duly authorized attorney, upon surrender of this certificate duly endorsed and
in proper form for transfer as provided in Section 5.5 of the Trust Agreement
(as defined below). The designations, rights, privileges, restrictions,
preferences and other terms and provisions of the Capital Securities are set
forth in, and this certificate and the Capital Securities represented hereby are
issued and shall in all respects be subject to the terms and provisions of, the
Amended and Restated Trust Agreement of the Issuer Trust, dated as of
__________, ____, as the same may be amended from time to time (the "Trust
Agreement"), among American International Group, Inc., as Sponsor, The Bank of
New York, as Property Trustee, The Bank of New York (Delaware), as Delaware
Trustee, three individuals selected by the holders of the Common Securities to
act as administrators with respect to the Issuer Trust and the Holders of Trust
Securities, including the designation of the terms of the Capital Securities as
set forth therein. The Holder is entitled to the benefits of the Guarantee
Agreement, dated as of __________, ____ (the "Guarantee Agreement"), entered
into by American International Group, Inc., as Guarantor, and The Bank of New
York, as guarantee trustee, to the extent provided therein. The Issuer Trust
will furnish a copy of the Trust Agreement and the Guarantee Agreement to the
Holder without charge upon written request to the Issuer Trust at its principal
place of business or registered office.

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

      Terms used but not defined herein have the meanings set forth in the Trust
Agreement.

                                       E-2
<PAGE>

      IN WITNESS WHEREOF, one of the Administrators of the Issuer Trust has
executed this certificate this ____ day of ___________.

                             AIG CAPITAL TRUST ( )

                             By: _______________________________________________
                             Name:
                             Title: Administrator

                             AUTHENTICATED, COUNTERSIGNED AND
                             REGISTERED:

                             The Bank of New York, as Property Trustee

                             By: _______________________________________________
                             Name:
                             Title:

                                      E-3

<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital
Security to:

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

________________________________________________________________________________
                   (Insert address and zip code of assignee)

and irrevocably appoints

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

Date:  ____________________

Signature:  ____________________________________________________________________
          (Sign exactly as your name appears on the other side of this
                          Capital Security Certificate)

                             Signature Guarantee:  _________________________

                               SIGNATURE GUARANTEE

      The signature(s) must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Property Trustee (banks, stockbrokers, savings
and loan associations and credit unions with membership in an approved signature
guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

                                      E-4

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