Document:

agreement.htm

    

    Exhibit
10.2

    WMS
Industries Inc.

    800 S
..Northpoint Boulevard

    Waukegan,
Illinois  60085

    (tel)  847.785.3000

    (fax)
847.785.3058

    

    

    

    May 5,
2008

    

    

    

    Mr. Louis
J. Nicastro

    

    

    Re:           Advisory
Agreement

     

    Dear
Lou:

     

    The Board
of Directors of WMS recognizes the critical role you have played and continue to
play in shepherding WMS and its predecessors for more than 40
years.  Among other matters, under your guidance the Company has built
an industry-leading management team and grown its market capitalization from
approximately $70 million ten years ago to approximately $2 billion
today.

     

    Just as
you did in 2001, when at your initiative the mantle of executive leadership was
passed from you to Brian Gamache, you have advised the Board that you believe it
would be appropriate for the Company to take the next logical step in its
long-term succession planning, specifically, you would step down as
non-executive Chairman of the Board and Brian would take on the titles of both
Chairman and Chief Executive Officer.  In connection therewith, Brian
would relinquish the position of President, and appropriate other management
changes would be made.  Further, you have stated that when you resign
as Chairman, while you will remain as a director, you believe it would be
appropriate for the Board to designate a Board member other than yourself to
serve as Lead Director to preside at Board meetings when the Chairman is not
present, to assist the Chairman in establishing Board agendas, to preside at
executive sessions of the Board and to fulfill such other functions as the Board
directs.

     

    During
the period that you have served as non-executive Chairman, you have been
available to senior management of the Company on a daily basis to provide the
benefit of your experience and advice.  You have agreed to continue to
do so, but you have indicated that you would like to establish a finite period
during which you will commit to be so constantly available.  Toward
this goal, you have suggested that you should, once your resignation as Chairman
is effective, receive compensation as a director only in the same amounts as the
compensation paid to other non-management directors.  In addition, the
Board has requested and you have agreed to enter into an advisory arrangement
with the Company for a period of three years with the total amounts to be
received by you as a director and an advisor not to exceed the remuneration you
received as Chairman.

     

    In order
to effect this arrangement you and WMS agree as follows:

     

    
      	
              1.  

            	
              You
      hereby resign from your position as Chairman of the Board of WMS,
      effective July 1, 2008, but will remain as a member of the
      Board.

            

    

    

    
      	
              2.  

            	
              For
      the period commencing July 1, 2008 and ending June 30, 2011, you shall
      provide such business advisory services to the Company as shall be
      requested from time to time by the Board of Directors of the Company, by
      the Lead Director or by any of the Chairmen of the Company’s Audit and
      Ethics Committee, Compensation Committee or Nominating and Corporate
      Governance Committee.  You will not be required to report on any
      periodic basis to the Company’s offices or any other specific location and
      may render such services by telephone or written
      communication.  The Company will give you reasonable prior
      notice of the times your services will be needed and you will have a
      reasonable time after notice from the Company to render such requested
      services.

            

    

    

    
      	
              3.  

            	
              After
      the effective date of your resignation as Chairman, as a Board member you
      will receive the same annual cash retainer (currently $50,000) and equity
      grants that other non-management directors receive (as Chairman you
      received an annual cash retainer of $500,000 and such equity
      grants).

            

    

    

    
      	
              4.  

            	
              As
      compensation for your advisory services hereunder, commencing July 1,
      2008, the Company will pay you an advisory fee of $450,000 per annum at
      the rate of $37,500 per month.

            

    

    

    
      	
              5.  

            	
              The
      provisions of paragraph 4 of your letter agreement dated June 12, 2001
      (the “June 2001 Letter”) relating to medical, dental and other expenses,
      shall remain in full force and effect.  Those provisions provide
      for WMS, during your life and the life of your wife Elaine, if she
      survives you, to reimburse you and Elaine for all medical and dental
      expenses incurred by the two of you to the extent such expenses are not
      otherwise reimbursed by insurance provided by
  WMS.

            

    

    

    
      	
              6.  

            	
              During
      the term of your advisory agreement, in accordance with the provisions of
      paragraph 3 of the June 2001 Letter, so long as the Company retains its
      rights to use a corporate aircraft you will have the right to use that
      corporate aircraft for corporate business in the same manner as you have
      previously.

            

    

    

    
      	
              7.  

            	
              The
      date of June 30, 2010 set forth in paragraph 5 of the June 2001 Letter
      relating to your contractual non-compete period is hereby changed to June
      30, 2012.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Please
indicate your agreement to foregoing by signing this letter in the place
provided below.

     

    Very
truly yours,

    

    WMS
INDUSTRIES INC.

    

    

    

    By:         /s/ Brian R. Gamache

    Brian R. Gamache

    Chief Executive Officer

    

    Accepted
and Agreed to:

    

    

    

    /s/
Louis J. Nicastro

    Louis J.
Nicastroex10-o.htm

    
      

      

    

    

    Exhibit
10(o)

     

    

     

    

     

    

     

    AMENDED
AND RESTATED DECLARATION

     

    OF
TRUST

     

    CITY
HOLDING CAPITAL TRUST III

     

    Dated as
of March 27, 2008

     

    

    

    

     

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            Page

             

          

        

      

    

    

    ARTICLE
I

     

    INTERPRETATION
AND DEFINITIONS

     

    
      	
              SECTION
      1.1.

            	
              Definitions

            	
              1

            

    

    ARTICLE
II

     

    ORGANIZATION

     

    
      	
              SECTION
      2.1.

            	
              Name

            	
              9

            
	
              SECTION
      2.2.

            	
              Office

            	
              9

            
	
              SECTION
      2.3.

            	
              Purpose

            	
              9

            
	
              SECTION
      2.4.

            	
              Authority

            	
              9

            
	
              SECTION
      2.5.

            	
              Title
      to Property of the Trust

            	
              9

            
	
              SECTION
      2.6.

            	
              Powers
      and Duties of the Trustees and the Administrators

            	
              10

            
	
              SECTION
      2.7.

            	
              Prohibition
      of Actions by the Trust and the Trustees

            	
              14

            
	
              SECTION
      2.8.

            	
              Powers
      and Duties of the Institutional Trustee

            	
              15

            
	
              SECTION
      2.9.

            	
              Certain
      Duties and Responsibilities of the Trustees and the
      Administrators

            	
              17

            
	
              SECTION
      2.10.

            	
              Certain
      Rights of Institutional Trustee

            	
              18

            
	
              SECTION
      2.11.

            	
              Delaware
      Trustee

            	
              21

            
	
              SECTION
      2.12.

            	
              Execution
      of Documents

            	
              21

            
	
              SECTION
      2.13.

            	
              Not
      Responsible for Recitals or Issuance of Securities

            	
              21

            
	
              SECTION
      2.14.

            	
              Duration
      of Trust

            	
              21

            
	
              SECTION
      2.15.

            	
              Mergers

            	
              22

            

    

    ARTICLE
III

     

    SPONSOR

     

    
      	
              SECTION
      3.1.

            	
              Sponsor's
      Purchase of Common Securities

            	
              24

            
	
              SECTION
      3.2.

            	
              Responsibilities
      of the Sponsor

            	
              24

            

    

    ARTICLE
IV

     

    TRUSTEES
AND ADMINISTRATORS

     

    
      	
              SECTION
      4.1.

            	
              Number
      of Trustees

            	
              24

            
	
              SECTION
      4.2.

            	
              Delaware
      Trustee

            	
              25

            
	
              SECTION
      4.3.

            	
              Institutional
      Trustee; Eligibility

            	
              25

            
	
              SECTION
      4.4.

            	
              Certain
      Qualifications of the Delaware Trustee Generally

            	
              25

            
	
              SECTION
      4.5.

            	
              Administrators

            	
              25

            
	
              SECTION
      4.6.

            	
              Initial
      Delaware Trustee

            	
              26

            
	
              SECTION
      4.7.

            	
              Appointment,
      Removal and Resignation of the Trustees and the
    Administrators

            	
              26

            
	
              SECTION
      4.8.

            	
              Vacancies
      Among Trustees

            	
              28

            
	
              SECTION
      4.9.

            	
              Effect
      of Vacancies

            	
              28

            
	
              SECTION
      4.10.

            	
              Meetings
      of the Trustees and the Administrators

            	
              28

            
	
              SECTION
      4.11.

            	
              Delegation
      of Power

            	
              28

            
	
              SECTION
      4.12.

            	
              Merger,
      Conversion, Consolidation or Succession to Business

            	
              29

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
          

           

          TABLE
OF CONTENTS

          (continued)

           

          Page

           

        

      

    

     

    ARTICLE
V

     

    DISTRIBUTIONS

     

    
      	
              SECTION
      5.1.

            	
              Distributions

            	
              29

            

    

    ARTICLE
VI

     

    ISSUANCE
OF SECURITIES

     

    
      	
              SECTION
      6.1.

            	
              General
      Provisions Regarding Securities

            	
              30

            
	
              SECTION
      6.2.

            	
              Paying
      Agent, Transfer Agent, Calculation Agent and Registrar

            	
              31

            
	
              SECTION
      6.3.

            	
              Form
      and Dating

            	
              31

            
	
              SECTION
      6.4.

            	
              Book-Entry
      Capital Securities

            	
              32

            
	
              SECTION
      6.5.

            	
              Mutilated,
      Destroyed, Lost or Stolen Certificates

            	
              34

            
	
              SECTION
      6.6.

            	
              Temporary
      Securities

            	
              34

            
	
              SECTION
      6.7.

            	
              Cancellation

            	
              34

            
	
              SECTION
      6.8.

            	
              Rights
      of Holders; Waivers of Past Defaults

            	
              34

            

    

    ARTICLE
VII

     

    DISSOLUTION
AND TERMINATION OF TRUST

     

    
      	
              SECTION
      7.1.

            	
              Dissolution
      and Termination of Trust

            	
              36

            

    

    ARTICLE
VIII

     

    TRANSFER
OF INTERESTS

     

    
      	
              SECTION
      8.1.

            	
              General

            	
              37

            
	
              SECTION
      8.2.

            	
              Transfer
      Procedures and Restrictions

            	
              38

            
	
              SECTION
      8.3.

            	
              Deemed
      Security Holders

            	
              42

            

    

     

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
          

           

          TABLE
OF CONTENTS

          (continued)

           

          Page

           

        

      

    

    ARTICLE
IX

     

    LIMITATION
OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

     

    
      	
              SECTION
      9.1.

            	
              Liability

            	
              42

            
	
              SECTION
      9.2.

            	
              Exculpation

            	
              42

            
	
              SECTION
      9.3.

            	
              Fiduciary
      Duty

            	
              43

            
	
              SECTION
      9.4.

            	
              Indemnification

            	
              44

            
	
              SECTION
      9.5.

            	
              Outside
      Businesses

            	
              47

            
	
              SECTION
      9.6.

            	
              Compensation;
      Fee

            	
              47

            

    

    ARTICLE
X

     

    ACCOUNTING

     

    
      	
              SECTION
      10.1.

            	
              Fiscal
      Year

            	
              47

            
	
              SECTION
      10.2.

            	
              Certain
      Accounting Matters

            	
              48

            
	
              SECTION
      10.3.

            	
              Banking

            	
              48

            
	
              SECTION
      10.4.

            	
              Withholding

            	
              48

            

    

    ARTICLE
XI

     

    AMENDMENTS
AND MEETINGS

     

    
      	
              SECTION
      11.1.

            	
              Amendments

            	
              49

            
	
              SECTION
      11.2.

            	
              Meetings
      of the Holders of the Securities; Action by Written
Consent

            	
              51

            

    

    ARTICLE
XII

     

    REPRESENTATIONS
OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

     

    
      	
              SECTION
      12.1.

            	
              Representations
      and Warranties of Institutional Trustee

            	
              52

            
	
              SECTION
      12.2.

            	
              Representations
      and Warranties of Delaware Trustee

            	
              53

            

    

    ARTICLE
XIII

     

    MISCELLANEOUS

     

    
      	
              SECTION
      13.1.

            	
              Notices

            	
              54

            
	
              SECTION
      13.2.

            	
              Governing
      Law

            	
              54

            
	
              SECTION
      13.3.

            	
              Submission
      to Jurisdiction

            	
              55

            
	
              SECTION
      13.4.

            	
              Intention
      of the Parties

            	
              56

            
	
              SECTION
      13.5.

            	
              Headings

            	
              56

            
	
              SECTION
      13.6.

            	
              Successors
      and Assigns

            	
              56

            
	
              SECTION
      13.7.

            	
              Partial
      Enforceability

            	
              56

            
	
              SECTION
      13.8.

            	
              Counterparts

            	
              56

            

    

    

    
      
        
           

        

        
          -iii-

          
            

          

        

        
           

          
            TABLE
OF CONTENTS

            (continued)

            

          

        

      

    

    

    ANNEXES
AND EXHIBITS

     

    
      	
              ANNEX
      I

            	
              Terms
      of Capital Securities and Common Securities

            
	
              EXHIBIT
      A-1

            	
              Form
      of Capital Security Certificate

            
	
              EXHIBIT
      A-2

            	
              Form
      of Common Security Certificate

            

    

    

    
      
        
           

        

        
          -iv-

          
            

          

        

        
           

        

      

    

    

    AMENDED
AND RESTATED DECLARATION OF TRUST

     

    OF

     

    CITY
HOLDING CAPITAL TRUST III

     

    March 27,
2008

     

    AMENDED
AND RESTATED DECLARATION OF TRUST (this "Declaration"), dated and effective as
of March 27, 2008, by the Trustees (as defined herein), the Administrators (as
defined herein), the Sponsor (as defined herein) and the holders from time to
time of undivided beneficial interests in the assets of the Trust (as defined
herein) to be issued pursuant to this Declaration.

     

    WHEREAS,
the Delaware Trustee and the Sponsor established City Holding Capital Trust III
(the "Trust"), a statutory trust under the Statutory Trust Act (as defined
herein), pursuant to a Declaration of Trust, dated as of March 25, 2008 (the
"Original Declaration"), and a Certificate of Trust filed with the Secretary of
State of the State of Delaware on March 25, 2008, for the sole purpose of
issuing and selling certain securities representing undivided beneficial
interests in the assets of the Trust and investing the proceeds thereof in the
Debentures (as defined herein) of the Debenture Issuer (as defined herein) in
connection with the issuance of the Capital Securities (as defined
herein);

     

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

     

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

     

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

     

    ARTICLE
I

     

    INTERPRETATION
AND DEFINITIONS

     

    SECTION
1.1.  Definitions.  Unless
the context otherwise requires:

     

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

     

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

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

     

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

     

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

     

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

     

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

     

    "Additional
Interest" has the meaning set forth in Section 3.06 of the
Indenture.

     

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

     

    "Administrators"
means each of David L. Bumgarner and Dewey E. S. Kuhns, II, solely in such
Person's capacity as Administrator of the Trust continued hereunder and not in
such Person's individual capacity, or such Administrator's successor in interest
in such capacity, or any successor appointed as herein provided.

     

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

     

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

     

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

     

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

     

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

     

    (b)           such
Person commences a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, consents to the entry of an order
for relief in an involuntary case under any such law, or consents to the
appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other

     

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

    similar
official of such Person of any substantial part of its property, or makes any
general assignment for the benefit of creditors, or fails generally to pay its
debts as they become due.

     

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

     

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

     

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

     

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

     

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

     

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

     

    "Certificate"
means any certificate evidencing Securities.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    "Corporate
Trust Office" means the office of the Institutional Trustee at which the
corporate trust business of the Institutional Trustee shall, at any particular
time, be principally administered, which office shall at all times be located in
the United States and at the date of execution of this Declaration is located at
919 North Market Street, Suite 1600, Wilmington, DE 19801, Attention: Corporate
Trust Division.

     

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

     

    

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

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

     

    "Debenture
Issuer" means City Holding Company, a bank holding company incorporated in West
Virginia, in its capacity as issuer of the Debentures under the
Indenture.

     

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

     

    "Debentures"
means the Junior Subordinated Debt Securities due June 15, 2038 to be issued by
the Debenture Issuer under the Indenture.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    "Distribution
Payment Period" means the period from and including a Distribution Payment Date,
or in the case of the first Distribution Payment Period, the original date of
issuance of the Securities, to, but excluding, the next succeeding Distribution
Payment Date or, in the case of the last Distribution Payment Period, the
Redemption Date, Special Redemption Date or Maturity Date (each as defined in
the Indenture), as the case may be, for the related Debentures.

     

    

    
      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    "Guarantee"
means the Guarantee Agreement, dated as of March 27, 2008, of the Sponsor in
respect of the Capital Securities.

     

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

     

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

     

    "Indenture"
means the Indenture, dated as of March 27, 2008, among the Debenture Issuer and
the Debenture Trustee, and any indenture supplemental thereto pursuant to which
the Debentures are to be issued.

     

    "Indenture
Event of Default" means an "Event of Default" as defined in the
Indenture.

     

    "Initial
Purchaser" means the initial purchaser of the Capital Securities.

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

    "Property
Account" has the meaning set forth in Section 2.8(c).

     

    "Pro
Rata" has the meaning set forth in paragraph 8 of Annex I.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

    "Sponsor"
means City Holding Company, a bank holding company that is a U.S. Person
incorporated in West Virginia, or any successor entity in a merger,
consolidation or amalgamation that is a U.S. Person, in its capacity as sponsor
of the Trust.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    "10% in
liquidation amount of the Securities" means Holders of outstanding Securities
voting together as a single class or, as the context may require, Holders of
outstanding Capital Securities or Holders of outstanding Common Securities
voting separately as a class, who are the record owners of 10% or more of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all outstanding
Securities of the relevant class.

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

    ARTICLE
II

     

    ORGANIZATION

     

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

     

    SECTION
2.2.  Office.  The
address of the principal office of the Trust, which shall be in a state of the
United States or the District of Columbia, is P. O. Box 7520, 25 Gatewater Road,
Charleston, West Virginia 25356-0520. On ten Business Days' written notice to
the Institutional Trustee and the Holders of the Securities, the Administrators
may designate another principal office, which shall be in a state of the United
States or the District of Columbia.

     

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

     

    SECTION
2.4.  Authority.  Except
as specifically provided in this Declaration, the Institutional Trustee shall
have exclusive and complete authority to carry out the purposes of the Trust. An
action taken by a Trustee on behalf of the Trust and in accordance with such
Trustee's powers shall constitute the act of and serve to bind the Trust. In
dealing with the Trustees acting on behalf of the Trust, no Person shall be
required to inquire into the authority of the Trustees to bind the Trust.
Persons dealing with the Trust are entitled to rely conclusively on the power
and authority of the Trustees as set forth in this Declaration. The
Administrators shall have only those ministerial duties set forth herein with
respect to accomplishing the purposes of the Trust and are not intended to be
trustees or fiduciaries with respect to the Trust or the Holders. The
Institutional Trustee shall have the right, but shall not be obligated except as
provided in Section 2.6, to perform those duties assigned to the
Administrators.

     

    SECTION
2.5.  Title
to Property of the Trust.  Except as provided in Section 2.6(g)
and Section 2.8 with respect to the Debentures and the Property Account or as
otherwise provided in

     

    

    
      
        
           

        

        
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    this
Declaration, legal title to all assets of the Trust shall be vested in the
Trust. The Holders shall not have legal title to any part of the assets of the
Trust, but shall have an undivided beneficial interest in the assets of the
Trust.

     

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

     

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

     

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

     

    (A)           the
issuance and sale of the Securities;

     

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

     

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

     

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

     

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

     

    (F)           the
sending of notices (other than notices of default) and other information
regarding the Securities and the Debentures to the Holders in accordance with
this Declaration, including notice of any notice received from the Debenture
Issuer of its election to defer payments of interest on the Debentures by
extending the interest payment period under the Indenture;

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

    (A)           the
establishment of the Property Account;

     

    (B)           the
receipt of the Debentures;

     

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

     

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

     

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

     

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

     

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

     

    (H)           after
any Event of Default (of which the Institutional Trustee has knowledge (as
provided in Section 2.10(m) hereof)) (provided, that such
Event of Default is not by or with respect to the Institutional Trustee), the
taking of any action incidental to the foregoing as the Institutional Trustee
may from time to time determine is necessary or advisable to give effect to the
terms of this Declaration and protect and conserve the Trust Property for the
benefit of the Holders (without consideration of the effect of any such action
on any particular Holder);

     

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

     

    

    
      
        
           

        

        
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    Securities
or to enable the Trust to effect the purposes for which the Trust was created;
and

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

    (e)           All
expenses incurred by the Administrators or the Trustees pursuant to this Section
2.6 shall be reimbursed by the Sponsor, and the Trustees shall have no
obligations with respect to such expenses.

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
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    possess
Trust Property for other than a Trust purpose;

     

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

     

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

     

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

     

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

     

    SECTION
2.8.  Powers
and Duties of the Institutional Trustee.

     

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

     

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

     

    (c)           The
Institutional Trustee shall:

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

    (i)           the
Trust has been completely liquidated and the proceeds of the liquidation
distributed to the Holders of the Securities pursuant to the terms of the
Securities and this Declaration (including Annex I) and the certificate of
cancellation referenced in Section 7.1(b) has been filed; or

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

    (c)           All
payments made by the Institutional Trustee or a Paying Agent in respect of the
Securities shall be made only from the revenue and proceeds from the Trust
Property and only to the extent that there shall be sufficient revenue or
proceeds from the Trust Property to enable the Institutional Trustee or a Paying
Agent to make payments in accordance

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

    (iv)           the
Institutional Trustee shall not be liable for any interest on any money received
by it except as it may otherwise agree in writing with the Sponsor; and money
held by the Institutional Trustee need not be segregated from other funds held
by it except in relation to the Property Account maintained by the Institutional
Trustee pursuant to Section 2.8(c)(í) and except to the extent otherwise
required by law; and

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

    (f)           the
Institutional Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Declaration at the request or direction of any of
the Holders pursuant to this Declaration, unless such Holders shall have offered
to the Institutional Trustee security or indemnity reasonably satisfactory to it
against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction; provided, that
nothing contained in this Section 2.10(g) shall be taken to relieve the
Institutional Trustee, upon the occurrence of an Event of Default (of which the
Institutional Trustee has knowledge (as

     

    

    
      
        
           

        

        
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    provided
in Section 2.10(m) hereof)) that has not been cured or waived, of its obligation
to exercise the rights and powers vested in it by this Declaration;

     

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

     

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

     

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

     

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

     

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

     

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

     

    (m)           any
action taken by the Institutional Trustee or its agents hereunder shall bind the
Trust and the Holders of the Securities, and the signature of the Institutional
Trustee or its agents alone shall be sufficient and effective to perform any
such action and no third party

     

    

    
      
        
           

        

        
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    shall be
required to inquire as to the authority of the Institutional Trustee to so act
or as to its compliance with any of the terms and provisions of this
Declaration, both of which shall be conclusively evidenced by the Institutional
Trustee's or its agent's taking such action;

     

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

     

    (o)           In
no event shall the Institutional Trustee be liable for any indirect, special,
punitive or consequential loss or damage of any kind whatsoever, including, but
not limited to, lost profits, even if the Institutional Trustee has been advised
of the likelihood of such loss or damage and regardless of the form of action;
and

     

    (p)           In
no event shall the Institutional Trustee be liable for any failure or delay in
the performance of its obligations hereunder because of circumstances beyond its
control, including, but not limited to, acts of God, flood, war (declared or
undeclared), terrorism, fire, riot, embargo or government action, including any
laws, ordinances, regulations, governmental action or the like which delay,
restrict or  prohibit the providing of services contemplated by this
Agreement.

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
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    SECTION
2.15.  Mergers.

     

    (a)           The
Trust may not consolidate, amalgamate, merge with or into, or be replaced by, or
convey, transfer or lease its properties and assets substantially as an entirety
to any corporation or other Person, except as described in this Section 2.15 and
except with respect to the distribution of Debentures to Holders of Securities
pursuant to Section 7.1(a)(iv) of the Declaration or Section 3 of Annex
I.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
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    interests
in the Successor Entity as a result of such merger, consolidation, amalgamation
or replacement);

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
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    ARTICLE III

    SPONSOR

     

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

     

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

     

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

     

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

     

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

     

    ARTICLE
IV

    TRUSTEES
AND ADMINISTRATORS

     

    SECTION
4.1.  Number
of Trustees.  The number of Trustees initially shall be two,
and:

     

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

     

    (b)           after
the issuance of any Securities, the number of Trustees may be increased or
decreased by vote of the Holder of a Majority in liquidation amount of the
Common Securities voting as a class at a meeting of the Holder of the Common
Securities; provided, however, that there
shall be a Delaware Trustee if required by Section 4.2; and there shall always
be one Trustee who shall be the Institutional Trustee, and such Trustee may also
serve as Delaware Trustee if it meets the applicable requirements, in which case
Section 2.11 shall have no application to such entity in its capacity as
Institutional Trustee.

     

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

     

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

     

    

    
      
        
           

        

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

     

    SECTION
4.3.  Institutional Trustee;
Eligibility.

     

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

     

    (i)           not
be an Affiliate of the Sponsor;

     

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

     

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

     

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

     

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

     

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

     

    SECTION
4.4.  Certain Qualifications of
the Delaware Trustee Generally.  The Delaware Trustee shall be
a U.S. Person and either a natural person who is at least 21 years of age or a
legal entity that shall act through one or more Authorized
Officers.

     

    SECTION
4.5.  Administrators.  Each
Administrator shall be a U.S. Person.

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

    SECTION
4.11.  Delegation of
Power.

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

    ARTICLE
V

     

    DISTRIBUTIONS

     

    SECTION
5.1.  Distributions.

     

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

     

    (b)           As
a condition to the payment of any principal of or interest on the Securities
without the imposition of withholding tax, the Administrators shall require the
previous delivery of properly completed and signed applicable U.S. federal
income tax certifications (generally, an Internal Revenue Service Form W-9 (or
applicable successor form) in the case of a person that is a "United States
person" within the meaning of Section 7701(a)(30) of the Code or an Internal
Revenue Service Form W-8 (or applicable successor form) in the case of a person
that is not a "United States person" within the meaning of Section 7701(a)(30)
of the

     

    

    
      
        
           

        

        
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    Code, and
any other certification acceptable to it to enable the Institutional Trustee or
any Paying Agent to determine their respective duties and liabilities with
respect to any taxes or other charges that they may be required to pay, deduct
or withhold in respect of such Securities.

     

    ARTICLE
VI

     

    ISSUANCE
OF SECURITIES

     

    SECTION
6.1.  General Provisions Regarding
Securities.

     

    (a)           The
Administrators shall on behalf of the Trust issue one series of capital
securities, evidenced by a certificate substantially in the form of Exhibit A-1,
representing undivided beneficial interests in the assets of the Trust and
having such terms as are set forth in Annex I (the "Capital Securities"), and
one series of common securities, evidenced by a certificate substantially in the
form of Exhibit A-2, representing undivided beneficial interests in the assets
of the Trust and having such terms as are set forth in Annex I (the "Common
Securities"). The Trust shall issue no securities or other interests in the
assets of the Trust other than the Capital Securities and the Common Securities.
The Capital Securities rank pari passu and payment
thereon shall be made Pro Rata with the Common Securities except that, where an
Event of Default has occurred and is continuing, the rights of Holders of the
Common Securities to payment in respect of Distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights to payment
of the Holders of the Capital Securities.

     

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

     

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

     

    

    
      
        
           

        

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

     

    (d)           Upon
issuance of the Securities as provided in this Declaration, the Securities so
issued shall be deemed to be validly issued, fully paid and non-assessable, and
each Holder thereof shall be entitled to the benefits provided by this
Declaration.

     

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

     

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

     

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

     

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

     

    SECTION
6.3.  Form
and Dating.

     

    (a)           The
Capital Securities and the Institutional Trustee's certificate of authentication
thereon shall be substantially in the form of Exhibit A-1, and the Common
Securities shall be substantially in the form of Exhibit A-2, each of which is
hereby incorporated in and expressly made a part of this Declaration.
Certificates may be typed, printed, lithographed or engraved or may be produced
in any other manner as is reasonably acceptable to the Administrators, as
conclusively evidenced by their execution thereof. The Certificates may have
letters, numbers, notations or other marks of identification or designation and
such legends or endorsements required by law, stock exchange rule, agreements to
which the Trust is subject, if any, or usage (provided, that any such notation,
legend or endorsement is in a form acceptable to

     

    

    
      
        
           

        

        
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    the
Sponsor). The Trust at the direction of the Sponsor shall furnish any such
legend not contained in Exhibit A-1 to the Institutional Trustee in writing.
Each Capital Security shall be dated the date of its authentication. The terms
and provisions of the Securities set forth in Annex I and the forms of
Securities set forth in Exhibits A-1 and A-2 are part of the terms of this
Declaration and to the extent applicable, the Institutional Trustee, the
Delaware Trustee, the Administrators and the Sponsor, by their execution and
delivery of this Declaration, expressly agree to such terms and provisions and
to be bound thereby. Capital Securities will be issued only in blocks having a
stated liquidation amount of not less than $100,000 and multiples of $1,000 in
excess thereof.

     

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

     

    SECTION
6.4.  Book-Entry Capital
Securities.

     

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

     

    (b)           If
any Global Capital Security is to be exchanged for Definitive Capital Securities
Certificates or canceled in part, or if any Definitive Capital Securities
Certificate is to be exchanged in whole or in part for any Global Capital
Security, then either (i) such Global Capital Security shall be so surrendered
for exchange or cancellation as provided in this Section 6.4 and Article VIII or
(ii) the aggregate liquidation amount represented by such Global
Capital

     

    

    
      
        
           

        

        
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    Security
shall be reduced, subject to Section 6.3, or increased by an amount equal to the
liquidation amount represented by that portion of the Global Capital Security to
be so exchanged or canceled, or equal to the liquidation amount represented by
such Definitive Capital Securities Certificates to be so exchanged for any
Global Capital Security, as the case may be, by means of an appropriate
adjustment made on the records of the Securities Registrar, whereupon the
Institutional Trustee, in accordance with the Applicable Depositary Procedures,
shall instruct the Depositary or its authorized representative to make a
corresponding adjustment to its records. Upon any such surrender to the
Administrators or the Registrar of any Global Capital Security or Securities by
the Depositary, accompanied by registration instructions, the Administrators, or
any one of them, shall execute the Definitive Capital Securities Certificates in
accordance with the instructions of the Depositary.  None of the
Registrar, Administrators, or the Institutional Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be fully protected in relying on, such instructions.

     

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

     

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

     

    (e)           The
rights of the Owners of the Book-Entry Capital Securities shall be exercised
only through the Depositary and shall be limited to those established by law,
the Applicable Depositary Procedures and agreements between such Owners and the
Depositary and/or the Depositary Participants; provided, solely for the purpose of
determining whether the Holders of the requisite amount of Capital Securities
have voted on any matter provided for in this Declaration, to the extent that
Capital Securities are represented by a Global Capital Security, the
Administrators and the Institutional Trustee may conclusively rely on, and shall
be fully protected in relying on, any written instrument (including a proxy)
delivered to the Institutional Trustee by the Depositary setting forth the
Owners' votes or assigning the right to vote on any matter to any other Persons
either in whole or in part.  To the extent that Capital Securities are
represented by a Global Capital Security, the initial Depositary will make
book-entry transfers among the Depositary Participants and receive and transmit
payments on the Capital Securities that are represented by a Global Capital
Security to such Depositary

     

    

    
      
        
           

        

        
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    Participants,
and none of the Sponsor, the Administrators or the Institutional Trustee shall
have any responsibility or obligation with respect thereto.

     

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

     

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

     

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

     

    (b)           there
shall be delivered to the Registrar, the Administrators and the Institutional
Trustee such security or indemnity as may be required by them to hold each of
them harmless; then, in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, an Administrator on behalf of the Trust
shall execute (and in the case of a Capital Security Certificate, the
Institutional Trustee shall authenticate) and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like denomination. In connection with the issuance of any new
Certificate under this Section 6.5, the Registrar or the Administrators may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith. Any duplicate Certificate
issued pursuant to this Section shall constitute conclusive evidence of an
ownership interest in the relevant Securities, as if originally issued, whether
or not the lost, stolen or destroyed Certificate shall be found at any
time.

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

    (b)           For
so long as any Capital Securities remain outstanding, if, upon an Indenture
Event of Default for which acceleration is permitted under Section 5.01, the
Debenture Trustee fails or the holders of not less than 25% in principal amount
of the outstanding Debentures fail to declare the principal of all of the
Debentures to be immediately due and payable, the Holders of not less than a
Majority in liquidation amount of the Capital Securities then outstanding shall
have the right to make such declaration by a notice in writing to the
Institutional Trustee, the Sponsor and the Debenture Trustee.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

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

     

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

     

    (e)           Except
as otherwise provided in this Section 6.8, the Holders of not less than a
Majority in liquidation amount of the Capital Securities may, on behalf of the
Holders of all the Capital Securities, waive any past default or Event of
Default and its consequences. Upon such waiver, any such default or Event of
Default shall cease to exist, and any default or Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

     

    ARTICLE
VII

     

    DISSOLUTION
AND TERMINATION OF TRUST

     

    SECTION
7.1.  Dissolution and Termination
of Trust.

     

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

     

    (i)           unless
earlier dissolved, on June 15, 2043, the expiration of the term of the
Trust;

     

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

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    ARTICLE
VIII

     

    TRANSFER
OF INTERESTS

     

    SECTION
8.1.  General.

     

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

     

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

     

    

    
      
        
           

        

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

     

    (c)           The
Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with
such indemnity as the Registrar may require) in respect of any tax or other
governmental charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Securities, the Registrar shall cause one or
more new Securities to be issued in the name of the designated transferee or
transferees. Any Security issued upon any registration of transfer or exchange
pursuant to the terms of this Declaration shall evidence the same Security and
shall be entitled to the same benefits under this Declaration as the Security
surrendered upon such registration of transfer or exchange. Every Security
surrendered for registration of transfer shall be accompanied by a written
instrument of transfer in form satisfactory to the Registrar duly executed by
the Holder or such Holder's attorney duly authorized in writing. Each Security
surrendered for registration of transfer shall be canceled by the Institutional
Trustee pursuant to Section 6.7. A transferee of a Security shall be entitled to
the rights and subject to the obligations of a Holder hereunder upon the receipt
by such transferee of a Security. By acceptance of a Security, each transferee
shall be deemed to have agreed to be bound by this Declaration.

     

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

     

    SECTION
8.2.  Transfer Procedures and
Restrictions.

     

    (a)           The
Capital Securities shall bear the Restricted Securities Legend (as defined
below), which shall not be removed unless there is delivered to the Trust such
satisfactory evidence, which may include an opinion of counsel reasonably
acceptable to the Institutional Trustee, as may be reasonably required by the
Trust or the Institutional Trustee, that neither the legend nor the restrictions
on transfer set forth therein are required to ensure that transfers thereof
comply with the provisions of the Securities Act or that such Securities are not
"restricted" within the meaning of Rule 144 under the Securities Act. Upon
provision of such satisfactory evidence, the Institutional Trustee, at the
written direction of the Administrators, shall authenticate and deliver Capital
Securities that do not bear the Restricted Securities Legend (other than the
legend contemplated by Section 8.2(d)).

     

    

    
      
        
           

        

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

     

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

     

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

     

    UNLESS
THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
CITY HOLDING CAPITAL TRUST III OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     

    THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE DEBENTURE ISSUER OR THE
TRUST, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A
PERSON THE HOLDER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE

     

    

    
      
        
           

        

        
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    TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A "NON U.S. PERSON" IN AN
"OFFSHORE TRANSACTION" PURSUANT TO REGULATION S UNDER THE SECURITIES ACT, (D)
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2),
(3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY
FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN "ACCREDITED INVESTOR," FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE DEBENTURE ISSUER'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO
EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A
COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER
OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

     

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

     

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

     

    

    
      
        
           

        

        
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    EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
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    Neither
the Institutional Trustee nor the Registrar shall be responsible for
ascertaining whether any transfer hereunder complies with the registration
provisions of or any exemptions from the Securities Act, applicable state
securities laws or the applicable laws of any other jurisdiction, ERISA, the
Code or the Investment Company Act.

     

    SECTION
8.3.  Deemed
Security Holders.  The Trust, the Administrators, the Trustees,
the Paying Agent, the Transfer Agent or the Registrar may treat the Person in
whose name any Certificate shall be registered on the books and records of the
Trust as the sole holder of such Certificate and of the Securities represented
by such Certificate for purposes of receiving Distributions and for all other
purposes whatsoever and, accordingly, shall not be bound to recognize any
equitable or other claim to or interest in such Certificate or in the Securities
represented by such Certificate on the part of any Person, whether or not the
Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or
the Registrar shall have actual or other notice thereof.

     

    ARTICLE
IX

     

    LIMITATION
OF LIABILITY OF HOLDERS

     

    OF
SECURITIES, TRUSTEES OR OTHERS

     

    SECTION
9.1.  Liability.

     

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

     

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

     

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

     

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

     

    (c)           Except
to the extent provided in Section 9.1(b), and pursuant to § 3803(a) of the
Statutory Trust Act, the Holders of the Securities shall be entitled to the same
limitation of personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of the State
of Delaware, except as otherwise specifically set forth herein.

     

    SECTION
9.2.  Exculpation.

     

    (a)           No
Indemnified Person shall be liable, responsible or accountable in damages or
otherwise to the Trust or any Covered Person for any loss, damage or claim
incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith on behalf of the Trust and in a manner such
Indemnified Person reasonably believed to be within the scope of the authority
conferred on such Indemnified Person by this Declaration or by law,

     

    

    
      
        
           

        

        
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    except
that an Indemnified Person (other than an Administrator) shall be liable for any
such loss, damage or claim incurred by reason of such Indemnified Person's
negligence or willful misconduct or bad faith with respect to such acts or
omissions and except that an Administrator shall be liable for any such loss,
damage or claim incurred by reason of such Administrator's gross negligence or
willful misconduct or bad faith with respect to such acts or
omissions.

     

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

     

    SECTION
9.3.  Fiduciary
Duty.

     

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

     

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

     

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

     

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

     

    (c)           It
is expressly understood and agreed by the parties hereto that insofar as any
document, agreement or certificate is executed on behalf of the Trust by any
Trustee (i) such document, agreement or certificate is executed and delivered by
such Trustee, not in its individual capacity, but solely as Trustee under this
declaration in the exercise of the powers and authority conferred and vested in
it, (ii) each of the representations, undertakings and agreements made on the
part of the Trust is made and intended not as representations, warranties,
covenants, undertakings and agreements by any Trustee in its individual
capacity, but is made and intended

     

    

    
      
        
           

        

        
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    for the
purpose of binding only the Trust and (iii) under no circumstances shall any
Trustee in its individual capacity be personally liable for the payment of any
indebtedness or expenses of the Trust or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by the
Trust under this Declaration or any other document, agreement, or
certificate.

     

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

     

    (ii)           The
Sponsor shall indemnify, to the fullest extent permitted by law, any Indemnified
Person who was or is a party or is threatened to be made a party to any
threatened, pending or completed action or suit by or in the right of the Trust
to procure a judgment in its favor by reason of the fact that such Person is or
was an Indemnified Person against expenses (including attorneys' fees and
expenses) actually and reasonably incurred by such Person in connection with the
defense or settlement of such action or suit if such Person acted in good faith
and in a manner such Person reasonably believed to be in or not opposed to the
best interests of the Trust and except that no such indemnification shall be
made in respect of any claim, issue or matter as to which such Indemnified
Person shall have been adjudged to be liable to the Trust unless and only to the
extent that the Court of Chancery of Delaware or the court in which such action
or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such
Person is fairly and reasonably entitled to indemnity for such expenses which
such Court of Chancery or such other court shall deem proper.

     

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

     

    

    
      
        
           

        

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

     

    (iv)           To
the fullest extent permitted by law, expenses (including attorneys' fees and
expenses) incurred by an Indemnified Person in defending a civil, criminal,
administrative or investigative action, suit or proceeding referred to in
paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor in
advance of the final disposition of such action, suit or proceeding upon receipt
of an undertaking by or on behalf of such Indemnified Person to repay such
amount if it shall ultimately be determined that such Person is not entitled to
be indemnified by the Sponsor as authorized in this Section 9.4(a).
Notwithstanding the foregoing, no advance shall be made by the Sponsor if a
determination is reasonably and promptly made (1) in the case of a Company
Indemnified Person (A) by the Administrators by a majority vote of a Quorum of
disinterested Administrators, (B) if such a Quorum is not obtainable, or, even
if obtainable, if a Quorum of disinterested Administrators so directs, by
independent legal counsel in a written opinion or (C) by the Common Security
Holder of the Trust, that, based upon the facts known to the Administrators,
counsel or the Common Security Holder at the time such determination is made,
such Indemnified Person acted in bad faith or in a manner that such Person
either believed to be opposed to or did not believe to be in the best interests
of the Trust, or, with respect to any criminal proceeding, that such Indemnified
Person believed or had reasonable cause to believe such conduct was unlawful, or
(2) in the case of a Fiduciary Indemnified Person, by independent legal counsel
in a written opinion that, based upon the facts known to the counsel at the time
such determination is made, such Indemnified Person acted in bad faith or in a
manner that such Indemnified Person either believed to be opposed to or did not
believe to be in the best interests of the Trust, or, with respect to any
criminal proceeding, that such Indemnified Person believed or had reasonable
cause to believe such conduct was unlawful. In no event shall any advance be
made (i) to a Company Indemnified Person in instances where the Administrators,
independent legal counsel or the Common Security Holder reasonably determine
that such Person deliberately breached such Person's duty to the Trust or its
Common or Capital Security Holders or (ii) to a Fiduciary Indemnified Person in
instances where independent legal counsel promptly and reasonably determines in
a written opinion that such Person deliberately breached such Person's duty to
the Trust or its Common or Capital Security Holders.

     

    (b)           The
Sponsor shall indemnify, to the fullest extent permitted by applicable law, each
Indemnified Person from and against any and all loss, damage, liability, tax
(other than

     

    

    
      
        
           

        

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

     

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

     

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

     

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

     

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

     

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

     

    

    
      
        
           

        

        
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    held in
trust for the benefit of the holders of particular Capital Securities, provided, that the
Sponsor is the holder of the Common Securities.

     

    SECTION
9.5.  Outside
Businesses.  Any Covered Person, the Sponsor, the Delaware
Trustee and the Institutional Trustee (subject to Section 4.3(c)) may engage in
or possess an interest in other business ventures of any nature or description,
independently or with others, similar or dissimilar to the business of the
Trust, and the Trust and the Holders of Securities shall have no rights by
virtue of this Declaration in and to such independent ventures or the income or
profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or
improper. None of any Covered Person, the Sponsor, the Delaware Trustee or the
Institutional Trustee shall be obligated to present any particular investment or
other opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust, could be taken by the Trust, and any Covered Person,
the Sponsor, the Delaware Trustee and the Institutional Trustee shall have the
right to take for its own account (individually or as a partner or fiduciary) or
to recommend to others any such particular investment or other opportunity. Any
Covered Person, the Delaware Trustee and the Institutional Trustee may engage or
be interested in any financial or other transaction with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of, securities or other obligations of
the Sponsor or its Affiliates.

     

    SECTION
9.6.  Compensation;
Fee.

     

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

     

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

     

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

     

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

     

    ARTICLE
X

     

    ACCOUNTING

     

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

     

     

    

    
      
        
           

        

        
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        SECTION 10.2. 
Certain Accounting
Matters.

     

    (a)           At
all times during the existence of the Trust, the Administrators shall keep, or
cause to be kept at the principal office of the Trust in the United States, as
defined for purposes of Treasury Regulations § 301.7701-7, full books of
account, records and supporting documents, which shall reflect in reasonable
detail each transaction of the Trust. The books of account shall be maintained
on the accrual method of accounting, in accordance with generally accepted
accounting principles, consistently applied.

     

    (b)           The
Administrators shall either (i) cause each Form 10-K and Form 10-Q prepared by
the Sponsor and filed with the Commission in accordance with the Exchange Act to
be delivered directly to each Holder of Securities, within 90 days after the
filing of each Form 10-K and within 30 days after the filing of each Form 10-Q
or (ii) cause to be prepared at the principal office of the Trust in the United
States, as defined for purposes of Treasury Regulations § 301.7701-7, and
delivered directly to each of the Holders of Securities, within 90 days after
the end of each Fiscal Year of the Trust, annual financial statements of the
Trust, including a balance sheet of the Trust as of the end of such Fiscal Year,
and the related statements of income or loss.

     

    (c)           The
Administrators shall cause to be duly prepared and delivered to each of the
Holders of Securities Form 1099 or such other annual United States federal
income tax information statement required by the Code, containing such
information with regard to the Securities held by each Holder as is required by
the Code and the Treasury Regulations. Notwithstanding any right under the Code
to deliver any such statement at a later date, the Administrators shall endeavor
to deliver all such statements within 30 days after the end of each Fiscal Year
of the Trust.

     

    (d)           The
Administrators shall cause to be duly prepared in the United States, as defined
for purposes of Treasury Regulations § 301.7701-7, and filed an annual United
States federal income tax return on a Form 1041 or such other form required by
United States federal income tax law, and any other annual income tax returns
required to be filed by the Administrators on behalf of the Trust with any state
or local taxing authority.

     

    (e)           The
Administrators will cause the Sponsor's reports on Form FR Y-9C, FR Y-9LP and FR
Y-6 to be delivered to the Holders promptly following their filing with the
Board of Governors of the Federal Reserve System (the "Federal
Reserve").

     

    SECTION
10.3.  Banking.  The
Trust shall maintain one or more bank accounts in the United States, as defined
for purposes of Treasury Regulations § 301.7701-7, in the name and for the sole
benefit of the Trust; provided, however, that all
payments of funds in respect of the Debentures held by the Institutional Trustee
shall be made directly to the Property Account and no other funds of the Trust
shall be deposited in the Property Account. The sole signatories for such
accounts (including the Property Account) shall be designated by the
Institutional Trustee.

     

    SECTION
10.4.  Withholding.  The
Institutional Trustee or any Paying Agent and the Administrators shall comply
with all withholding requirements under United States federal, state and local
law. The Institutional Trustee or any Paying Agent shall request, and each
Holder shall provide to the Institutional Trustee or any Paying Agent, such
forms or certificates as are

     

    

    
      
        
           

        

        
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    necessary
to establish an exemption from withholding with respect to the Holder, and any
representations and forms as shall reasonably be requested by the Institutional
Trustee or any Paying Agent to assist it in determining the extent of, and in
fulfilling, its withholding obligations. The Administrators shall file required
forms with applicable jurisdictions and, unless an exemption from withholding is
properly established by a Holder, shall remit amounts withheld with respect to
the Holder to applicable jurisdictions. To the extent that the Institutional
Trustee or any Paying Agent is required to withhold and pay over any amounts to
any authority with respect to distributions or allocations to any Holder, the
amount withheld shall be deemed to be a Distribution to the Holder in the amount
of the withholding. In the event of any claimed overwithholding, Holders shall
be limited to an action against the applicable jurisdiction. If the amount
required to be withheld was not withheld from actual Distributions made, the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by
the amount of such withholding.

     

    ARTICLE
XI

     

    AMENDMENTS
AND MEETINGS

     

    SECTION
11.1.  Amendments.

     

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

     

    (i)           the
Institutional Trustee,

     

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

     

    (iii)           if
the amendment affects the rights, powers, duties, obligations or immunities of
the Administrators, the Administrators, and

     

    (iv)           the
Holders of a Majority in liquidation amount of the Common
Securities.

     

    (b)           Notwithstanding
any other provision of this Article XI, no amendment shall be made, and any such
purported amendment shall be void and ineffective:

     

    (i)           unless
the Institutional Trustee shall have first received

     

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

     

    (B)           an
opinion of counsel (who may be counsel to the Sponsor or the Trust) that such
amendment is permitted by, and conforms to, the terms of this Declaration
(including the terms of the Securities) and that all conditions precedent to the
execution and delivery of such amendment have been satisfied; or

     

    

    
      
        
           

        

        
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    if the
result of such amendment would be to

     

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

     

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

     

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

     

    (F)           cause
the Debenture Issuer to be unable to treat an amount equal to the Liquidation
Amount of the Capital Securities as "Tier 1 Capital" for purposes of the capital
adequacy guidelines of (x) the Federal Reserve (or, if the Debenture Issuer
is not a bank holding company, such guidelines or policies applied to the
Debenture Issuer as if the Debenture Issuer were subject to such guidelines of
policies) or of (y) any other regulatory authority having jurisdiction over
the Debenture Issuer.

     

    (c)           Except
as provided in Section 11.1(d), (e) or (g), no amendment shall be made, and any
such purported amendment shall be void and ineffective, unless the Holders of a
Majority in liquidation amount of the Capital Securities shall have consented to
such amendment.

     

    (d)           In
addition to and notwithstanding any other provision in this Declaration, without
the consent of each affected Holder, this Declaration may not be amended to (i)
change the amount or timing of any Distribution on the Securities or any
redemption or liquidation provisions applicable to the Securities or otherwise
adversely affect the amount of any Distribution required to be made in respect
of the Securities as of a specified date or (ii) restrict the right of a Holder
to institute suit for the enforcement of any such payment on or after such
date.

     

    (e)           Sections
9.1 (b) and 9.1 (c) and this Section 11.1 shall not be amended without the
consent of all of the Holders of the Securities.

     

    (f)           The
rights of the Holders of the Capital Securities and Common Securities, as
applicable, under Article IV to increase or decrease the number of, and appoint
and remove, Trustees shall not be amended without the consent of the Holders of
a Majority in liquidation amount of the Capital Securities or Common Securities,
as applicable.

     

    (g)           Subject
to Section 11.1(a)(ii), this Declaration may be amended by the Institutional
Trustee and the Holder of a Majority in liquidation amount of the Common
Securities without the consent of the Holders of the Capital Securities
to:

     

    (i)           cure
any ambiguity;

     

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

     

    

    
      
        
           

        

        
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    add to
the covenants, restrictions or obligations of the Sponsor; or

     

    (iii)           modify,
eliminate or add to any provision of this Declaration to such extent as may be
necessary or desirable, including, without limitation, to ensure that the Trust
will be classified for United States federal income tax purposes at all times as
a grantor trust and will not be required to register as an Investment Company
under the Investment Company Act (including without limitation to conform to any
change in Rule 3a-5, Rule 3a-7 or any other applicable rule under the Investment
Company Act or written change in interpretation or application thereof by any
legislative body, court, government agency or regulatory authority) which
amendment does not have a material adverse effect on the right, preferences or
privileges of the Holders of Securities;

     

    provided, however, that no such
modification, elimination or addition referred to in clauses (i), (ii), (iii) or
(iv) shall adversely affect the powers, preferences or rights of Holders of
Capital Securities.

     

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

     

    (a)           Meetings
of the Holders of any class of Securities may be called at any time by the
Administrators (or as provided in the terms of the Securities) to consider and
act on any matter on which Holders of such class of Securities are entitled to
act under the terms of this Declaration, the terms of the Securities or the
rules of any stock exchange on which the Capital Securities are listed or
admitted for trading, if any. The Administrators shall call a meeting of the
Holders of such class if directed to do so by the Holders of not less than 10%
in liquidation amount of such class of Securities. Such direction shall be given
by delivering to the Administrators one or more notices in a writing stating
that the signing Holders of the Securities wish to call a meeting and indicating
the general or specific purpose for which the meeting is to be called. Any
Holders of the Securities calling a meeting shall specify in writing the
Certificates held by the Holders of the Securities exercising the right to call
a meeting and only those Securities represented by such Certificates shall be
counted for purposes of determining whether the required percentage set forth in
the second sentence of this paragraph has been met.

     

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

     

    (i)           notice
of any such meeting shall be given to all the Holders of the Securities having a
right to vote thereat at least 15 days and not more than 60 days before the date
of such meeting. Whenever a vote, consent or approval of the Holders of the
Securities is permitted or required under this Declaration or the rules of any
stock exchange on which the Capital Securities are listed or admitted for
trading, if any, such vote, consent or approval may be given at a meeting of the
Holders of the Securities. Any action that may be taken at a meeting of the
Holders of the Securities may be taken without a meeting if a consent in writing
setting forth the action so taken is signed by the Holders of the Securities
owning not less than the minimum amount of Securities that would be necessary to
authorize or take such action at a meeting at which all Holders of the
Securities

     

    

    
      
        
           

        

        
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    having a
right to vote thereon were present and voting. Prompt notice of the taking of
action without a meeting shall be given to the Holders of the Securities
entitled to vote who have not consented in writing. The Administrators may
specify that any written ballot submitted to the Holders of the Securities for
the purpose of taking any action without a meeting shall be returned to the
Trust within the time specified by the Administrators;

     

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

     

    (iii)           unless
the Statutory Trust Act, this Declaration, the terms of the Securities, the
Trust Indenture Act or the listing rules of any stock exchange on which the
Capital Securities are then listed for trading, if any, otherwise provides, the
Administrators, in their sole discretion, shall establish all other provisions
relating to meetings of Holders of Securities, including notice of the time,
place or purpose of any meeting at which any matter is to be voted on by any
Holders of the Securities, waiver of any such notice, action by consent without
a meeting, the establishment of a record date, quorum requirements, voting in
person or by proxy or any other matter with respect to the exercise of any such
right to vote; provided, however, that each
meeting shall be conducted in the United States (as that term is defined in
Treasury Regulations § 301.7701-7).

     

    ARTICLE
XII

     

    REPRESENTATIONS
OF INSTITUTIONAL TRUSTEE

     

    AND
DELAWARE TRUSTEE

     

    SECTION
12.1.  Representations and
Warranties of Institutional Trustee.  The Trustee that acts as
initial Institutional Trustee represents and warrants to the Trust and to the
Sponsor at the date of this Declaration, and each Successor Institutional
Trustee represents and warrants to the Trust and the Sponsor at the time of the
Successor Institutional Trustee's acceptance of its appointment as Institutional
Trustee, that:

     

    (a)           the
Institutional Trustee is a banking corporation or national association with
trust powers, duly organized, validly existing and in good standing under the
laws of the State of Delaware or the United States of America, respectively,
with trust power and authority to execute and deliver, and to carry out and
perform its obligations under the terms of, this Declaration;

     

    

    
      
        
           

        

        
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    the
Institutional Trustee has a combined capital and surplus of at least fifty
million U.S. dollars ($50,000,000);

     

    (b)           the
Institutional Trustee is not an affiliate of the Sponsor, nor does the
Institutional Trustee offer or provide credit or credit enhancement to the
Trust;

     

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

     

    (d)           the
execution, delivery and performance of this Declaration by the Institutional
Trustee does not conflict with or constitute a breach of the charter or by-laws
of the Institutional Trustee; and

     

    (e)           no
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority governing the trust powers of the
Institutional Trustee is required for the execution, delivery or performance by
the Institutional Trustee of this Declaration.

     

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

     

    (a)           if
it is not a natural person, the Delaware Trustee has its principal place of
business in the State of Delaware;

     

    (b)           if
it is not a natural person, the execution, delivery and performance by the
Delaware Trustee of this Declaration has been duly authorized by all necessary
corporate action on the part of the Delaware Trustee. This Declaration has been
duly executed and delivered by the Delaware Trustee, and under Delaware law
(excluding any securities laws) constitutes a legal, valid and binding
obligation of the Delaware Trustee, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, moratorium,
insolvency and other similar laws affecting creditors' rights generally and to
general principles of equity and the discretion of the court (regardless of
whether considered in a proceeding in equity or at law);

     

    (c)           if
it is not a natural person, the execution, delivery and performance of this
Declaration by the Delaware Trustee does not conflict with or constitute a
breach of the articles of association or by-laws of the Delaware
Trustee;

     

    (d)           it
has trust power and authority to execute and deliver, and to carry out and
perform its obligations under the terms of, this Declaration;

     

    

    
      
        
           

        

        
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    no
consent, approval or authorization of, or registration with or notice to, any
state or federal banking authority governing the trust powers of the Delaware
Trustee is required for the execution, delivery or performance by the Delaware
Trustee of this Declaration; and

     

    (e)           if
the Delaware Trustee is a natural person, he or she is a resident of the State
of Delaware.

     

    ARTICLE
XIII

     

    MISCELLANEOUS

     

    SECTION
13.1.  Notices.  All
notices provided for in this Declaration shall be in writing, duly signed by the
party giving such notice, and shall be delivered, telecopied (which telecopy
shall be followed by notice delivered or mailed by first class mail) or mailed
by first class mail, as follows:

     

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

     

    
      	
              City
      Holding Capital Trust III

            
	
              c/o
      City Holding Company

            
	
              P.
      O. Box 7520

            
	
              25
      Gatewater Road

            
	
              Charleston,
      West Virginia 25356-0520

            
	
              Attention:
      David L. Bumgarner

            
	
              Telecopy:
      (304) 769-1111

            
	
              Telephone:
      (304) 769-1169

            

    

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

     

    
      	
              Wells
      Fargo Delaware Trust Company

            
	
              919
      North Market Street, Suite 1600

            
	
              Wilmington,
      DE 19801

            
	
              Attention:
      Corporate Trust Division

            
	
              Telecopy:
      302-575-2006

            
	
              Telephone:
      302-575-2005

            

    

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

     

    
      	
              Wells
      Fargo Bank, National Association

            
	
              919
      North Market Street, Suite 1600

            
	
              Wilmington,
      DE 19801

            
	
              Attention:
      Corporate Trust Division

            
	
              Telecopy:
      302-575-2006

            
	
              Telephone:
      302-575-2005

            

    

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

     

    
      	
              City
      Holding Company

            
	
              P.
      O. Box 7520

            
	
              25
      Gatewater Road

            
	
              Charleston,
      West Virginia 25356-0520

            
	
              Attention:
      David L. Bumgarner

            
	
              Telecopy:
      (304) 769-1111

            
	
              Telephone:
      (304) 769-1169

            

    

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

     

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

     

    SECTION
13.2.  Governing
Law.  This Declaration and the rights and obligations of the
parties hereunder shall be governed by and interpreted in accordance with the
law of the State of Delaware and all rights, obligations and remedies shall be
governed by such laws without regard to the principles of conflict of laws of
the State of Delaware or any other jurisdiction that would call for the
application of the law of any jurisdiction other than the State of Delaware;
PROVIDED, HOWEVER, THAT THERE SHALL NOT BE APPLICABLE TO THE PARTIES HEREUNDER
OR THIS AGREEMENT ANY PROVISION OF THE LAWS (COMMON OR STATUTORY) OF THE STATE
OF DELAWARE PERTAINING TO TRUSTS THAT RELATE TO OR REGULATE, IN A MANNER
INCONSISTENT WITH THE TERMS HEREOF, (A) THE FILING WITH ANY COURT OR
GOVERNMENTAL BODY OR AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF TRUSTEE FEES AND
CHARGES, (B) AFFIRMATIVE REQUIREMENTS TO POST BONDS FOR TRUSTEES, OFFICERS,
AGENTS OR EMPLOYEES OF A TRUST, (C) THE NECESSITY FOR OBTAINING COURT OR OTHER
GOVERNMENTAL APPROVAL CONCERNING THE ACQUISITION, HOLDING OR DISPOSITION OF REAL
OR PERSONAL PROPERTY, (D) FEES OR OTHER SUMS PAYABLE TO TRUSTEES, OFFICERS,
AGENTS OR EMPLOYEES OF A TRUST, (E) THE ALLOCATION OF RECEIPTS AND EXPENDITURES
TO INCOME OR PRINCIPAL, (F) RESTRICTIONS OR LIMITATIONS ON THE PERMISSIBLE
NATURE, AMOUNT OR CONCENTRATION OF TRUST INVESTMENTS

     

    

    
      
        
           

        

        
          -54-

          
            

          

        

        
           

        

      

    

    

    OR
REQUIREMENTS RELATING TO THE TITLING, STORAGE OR OTHER MANNER OF HOLDING OR
INVESTING TRUST ASSETS OR (G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER STANDARDS
OF RESPONSIBILITY OR LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES THAT ARE
INCONSISTENT WITH THE LIMITATIONS OR AUTHORITIES AND POWERS OF THE TRUSTEE
HEREUNDER AS SET FORTH OR REFERENCED IN THIS AGREEMENT.  SECTION 3540
OF TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO THE TRUST.

     

    Each
party hereto (a) irrevocably submits to the exclusive jurisdiction of any
federal or state court sitting in Wilmington, Delaware in respect of any action
or proceeding arising out of or related to in any manner whatsoever this
Agreement, (b) expressly submits and consents in advance to such jurisdiction in
any action or suit commenced in any such court, and hereby waives any objection
such party may have based upon lack of personal jurisdiction, improper venue or
forum non conveniens, (c) hereby waives personal service of the summons,
complaint and other process issued in any such action or suit and agrees that
service of such summons, complaint and other process may be made by registered
or certified mail addressed to it at its notice address as provided in Section
13.1 and that service so made shall be deemed completed upon  the
earlier of such party's actual receipt thereof or three (3) days after deposit
in the United States mails, proper postage prepaid.

     

    SECTION
13.3.  Submission to
Jurisdiction.

     

    (a)           Each
of the parties hereto agrees that any suit, action or proceeding arising out of
or based upon this Declaration, or the transactions contemplated hereby, may be
instituted in any of the state or federal courts of the State of New York
located in the Borough of Manhattan, City and State of New York, and further
agrees to submit to the jurisdiction of Delaware, and to any actions that are
instituted in state or Federal court in Wilmington, Delaware and any competent
court in the place of its corporate domicile in respect of actions brought
against it as a defendant. In addition, each such party irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of the venue of such suit, action or proceeding brought in
any such court and irrevocably waives any claim that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum
and irrevocably waives any right to which it may be entitled on account of its
place of corporate domicile. Each such party hereby irrevocably waives any and
all right to trial by jury in any legal proceeding arising out of or relating to
this Declaration or the transactions contemplated hereby. Each such party agrees
that final judgment in any proceedings brought in such a court shall be
conclusive and binding upon it and may be enforced in any court to the
jurisdiction of which it is subject by a suit upon such judgment.

     

    (b)           Each
of the Sponsor, the Trustees, the Administrators and the Holder of the Common
Securities irrevocably consents to the service of process on it in any such
suit, action or proceeding by the mailing thereof by registered or certified
mail, postage prepaid, to it at its address given in or pursuant to Section 13.1
hereof.

     

    (c)           To
the extent permitted by law, nothing herein contained shall preclude any party
from effecting service of process in any lawful manner or from bringing any
suit, action or proceeding in respect of this Declaration in any other state,
country or place.

     

    

    
      
        
          
             

          

           

        

        
          -55-

          
            

          

        

        
           

        

      

    

     

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

    

     

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

     

    SECTION 13.6.  Successors and
Assigns.  Whenever in this Declaration any of the parties
hereto is named or referred to, the successors and assigns of such party shall
be deemed to be included, and all covenants and agreements in this Declaration
by the Sponsor and the Trustees shall bind and inure to the benefit of their
respective successors and assigns, whether or not so expressed.

     

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

     

    SECTION 13.8.  Counterparts.  This
Declaration may contain more than one counterpart of the signature page and this
Declaration may be executed by the affixing of the signature of each of the
Trustees and Administrators to any of such counterpart signature pages. All of
such counterpart signature pages shall be read as though one, and they shall
have the same force and effect as though all of the signers had signed a single
signature page.

     

    

    
      
        
          
             

          

           

        

        
          -56-

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the undersigned have caused this Declaration to be duly
executed as of the day and year first above written.

     

    
      	
              WELLS
      FARGO DELAWARE TRUST

            
	
              COMPANY, as Delaware
      Trustee

            

    

    

     

    
      	
              By:

            	
              /s/
      Amy J. Martin

            
	
              Name:

            	
               Amy
      J. Martin

            
	
              Title:

            	
              Vice
      President

            

    

    

    
      	
              WELLS
      FARGO BANK, NATIONAL

            
	
              ASSOCIATION, as Institutional
      Trustee

            

    

    

    

    

    
      	
              By:

            	
              /s/
      Amy J. Martin

            
	
              Name:

            	
               Amy
      J. Martin

            
	
              Title:

            	
              Vice
      President

            

    

    

     

              CITY HOLDING
COMPANY, as Sponsor

    

    

    

    
      	
              By:

            	
              /s/
      Charles R. Hageboeck

            
	
              Name:

            	
              Charles
      R. Hageboeck

            
	
              Title:

            	
              President
      & Chief Executive Officer

            

    

    

    

    

    
      	
              By:

            	
              /s/
      David L. Bumgarner

            
	
              Name:

            	
              David
      L. Bumgarner

            
	 
      	
              Administrator

            

    

    

    

    

    
      	
              By:

            	
              /s/
      Dewey E.S. Kuhns, II

            
	
              Name:

            	
              Dewey
      E.S. Kuhns, II

            
	 
      	
              Administrator

            

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ANNEX
I

     

    TERMS
OF

     

    CAPITAL
SECURITIES AND

     

    COMMON
SECURITIES

     

    Pursuant
to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of
March 27, 2008 (as amended from time to time, the "Declaration"), the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities and the Common Securities are set out below
(each capitalized term used but not defined herein has the meaning set forth in
the Declaration):

     

    1.           Designation and
Number.

     

    (a)           Capital
Securities.  16,000 Capital Securities of City Holding Capital Trust
III (the "Trust"), with an aggregate stated liquidation amount with respect to
the assets of the Trust of Sixteen Million Dollars ($16,000,000) and a stated
liquidation amount with respect to the assets of the Trust of $1,000 per Capital
Security, are hereby designated for the purposes of identification only as the
"Capital Securities" (the "Capital Securities"). The Capital Security
Certificates evidencing the Capital Securities shall be substantially in the
form of Exhibit A-1 to the Declaration, with such changes and additions thereto
or deletions therefrom as may be required by ordinary usage, custom or practice
or to conform to the rules of any stock exchange on which the Capital Securities
are listed, if any.

     

    (b)           Common
Securities.  495 Common Securities of the Trust (the "Common
Securities") will be evidenced by Common Security Certificates substantially in
the form of Exhibit A-2 to the Declaration, with such changes and additions
thereto or deletions therefrom as may be required by ordinary usage, custom or
practice. In the absence of an Event of Default, the Common Securities will have
an aggregate stated liquidation amount with respect to the assets of the Trust
of Four Hundred Ninety Five Thousand Dollars ($495,000) and a stated liquidation
amount with respect to the assets of the Trust of $1,000 per Common
Security.

     

    2.           Distributions.

     

    (a)           Distributions
payable on each Security will be payable at a variable per annum rate of
interest, reset quarterly, equal to LIBOR, as determined on the LIBOR
Determination Date for such Distribution Payment Period, plus 3.5% (the "Coupon
Rate") of the stated liquidation amount of $1,000 per Security, (provided,
however, that the Coupon Rate for any Distribution Payment Period may not exceed
the highest rate permitted by New York law, as the same may be modified by
United States law of general applicability), such Coupon Rate being the rate of
interest payable on the Debentures to be held by the Institutional Trustee.
Except as set forth below in respect of an Extension Period, Distributions in
arrears for more than one quarterly period will bear interest thereon compounded
quarterly at the applicable Coupon Rate for each such quarterly period (to the
extent permitted by applicable law). The term "Distributions" as used herein
includes cash distributions, any such compounded distributions and any
Additional Interest payable on the Debentures unless otherwise stated. A
Distribution is payable only to the extent that payments are made in respect of
the Debentures held by the

     

    

    
      
        
          
            A-I-1

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Institutional
Trustee and to the extent the Institutional Trustee has funds legally available
in the Property Account therefor. The amount of Distributions payable for any
Distribution Payment Period will be computed for any full quarterly Distribution
Payment Period on the basis of a 360-day year and the actual number of days
elapsed in the relevant Distribution period; provided, however, that upon the
occurrence of a Special Event redemption pursuant to paragraph 4(a) below the
amounts payable pursuant to this Declaration shall be calculated as set forth in
the definition of Special Redemption Price.

     

    (b)           LIBOR
shall be determined by the Calculation Agent in accordance with the following
provisions:

     

    (1)           On
the second LIBOR Business Day (provided, that on
such day commercial banks are open for business (including dealings in foreign
currency deposits) in London (a "LIBOR Banking Day"), and otherwise the next
preceding LIBOR Business Day that is also a LIBOR Banking Day) prior to the
March 15, June 15, September 15 and December 15 commencement date of each such
Distribution Payment Period (or, with respect to the first Distribution Payment
Period, on March 25, 2008), (each such day, a "LIBOR Determination Date") for
such Distribution Payment Period), the Calculation Agent shall obtain the rate
for three-month U.S. Dollar deposits in Europe, which appears on Reuters Screen
LIBOR 01 Page (as defined in the International Swaps and Derivatives
Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) or such
other page as may replace such page, as of 11:00 a.m. (London time) on such
LIBOR Determination Date, as reported by Bloomberg Financial Markets Commodities
News or any successor service (“Reuters Screen”), and the rate so obtained shall
be LIBOR for such Distribution Payment Period.  "LIBOR Business Day"
means any day that is not a Saturday, Sunday or other day on which commercial
banking institutions in The City of New York or Wilmington, Delaware are
authorized or obligated by law or executive order to be closed. If such rate is
superseded on Reuters Screen by a corrected rate before 12:00 noon (London time)
on the same LIBOR Determination Date, the corrected rate as so substituted will
be the applicable LIBOR for that Distribution Payment Period.

     

    (2)           If,
on any LIBOR Determination Date, such rate does not appear on Reuters Screen,
the Calculation Agent shall determine the arithmetic mean of the offered
quotations of the Reference Banks (as defined below) to leading banks in the
London Interbank market for three-month U.S. Dollar deposits in Europe (in an
amount determined by the Calculation Agent) by reference to requests for
quotations as of approximately 11:00 a.m. (London time) on the LIBOR
Determination Date made by the Calculation Agent to the Reference Banks. If, on
any LIBOR Determination Date, at least two of the Reference Banks provide such
quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on any
LIBOR Determination Date, only one or none of the Reference Banks provide such a
quotation, LIBOR shall be deemed to be the arithmetic mean of the offered
quotations that at least two leading banks in the City of New York (as selected
by the Calculation Agent) are quoting on the relevant LIBOR Determination Date
for three-month U.S. Dollar deposits in Europe at approximately 11:00 a.m.
(London

     

    

    
      
        
          
            A-I-2

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    time) (in
an amount determined by the Calculation Agent). As used herein, "Reference
Banks" means four major banks in the London Interbank market selected by the
Calculation Agent.

     

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

     

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

     

    (d)           As
soon as practicable following each LIBOR Determination Date, but in no event
later than the 30th day following such LIBOR Determination Date, the Calculation
Agent shall notify, in writing, the Sponsor and the Paying Agent of the
applicable Coupon Rate in effect for the related Distribution Payment Period.
The Calculation Agent shall, upon the request of the Holder of any Securities,
provide the Coupon Rate then in effect. All calculations made by the Calculation
Agent in the absence of manifest error shall be conclusive for all purposes and
binding on the Sponsor and the Holders of the Securities.  Any error
in calculation of the Coupon Rate by the Calculation Agent may be corrected at
any time by the delivery of notice of such corrected Coupon Rate as provided
above. The Paying Agent shall be entitled to rely on information received from
the Calculation Agent or the Sponsor as to the Coupon Rate. The Sponsor shall,
from time to time, provide any necessary information to the Paying Agent
relating to any original issue discount and interest on the Securities that is
included in any payment and reportable for taxable income calculation
purposes.  Failure to notify the Sponsor, the Institutional Trustee or
the Paying Agent of the applicable Coupon Rate shall not affect the obligation
of the Sponsor to make payments on the Debenture at such Coupon
Rate.

     

    (e)           Distributions
on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of Distribution payment
periods as described herein, quarterly in arrears on March 15, June 15,
September 15 and December 15 of each year, commencing June 15, 2008 (each, a
"Distribution Payment Date"). Subject to prior submission of Notice (as defined
in the Indenture), and so long as no Event of Default pursuant to paragraphs
(c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is
continuing, the Debenture Issuer has the right under the Indenture to defer
payments of interest on the Debentures by extending the interest distribution
period for up to 20 consecutive quarterly periods (each, an "Extension Period")
at any time and from time to time on the Debentures, subject to the conditions
described below, during which Extension Period no interest shall be due and
payable (except any Additional Interest that may be due and payable). During any
Extension Period, interest will continue to accrue on the Debentures, and
interest on such accrued interest (such accrued interest and interest thereon
referred to herein as "Deferred Interest") will accrue at an annual rate equal
to the Coupon Rate in effect for each such Extension Period, compounded
quarterly from the date such Deferred Interest would have been payable were it
not for the Extension Period, to the extent permitted by law. No Extension
Period may end on a date other than a Distribution Payment Date. At the end of
any such Extension Period, the Debenture Issuer

     

    

    
      
        
          
            A-I-3

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    shall pay
all Deferred Interest then accrued and unpaid on the Debentures; provided, however, that no
Extension Period may extend beyond the Maturity Date, Redemption Date (to the
extent redeemed) or Special Redemption Date and provided, further, that, during
any such Extension Period, the Debenture Issuer may not (i) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Debenture Issuer's capital stock
or (ii) make any payment of principal or premium or interest on or repay,
repurchase or redeem any debt securities of the Debenture Issuer that rank pari passu in all respects
with or junior in interest to the Debentures or (iii) make any payment under any
guarantees of the Debenture Issuer that rank in all respects pari passu with or junior in
interest to the Guarantee (other than (a) repurchases, redemptions or other
acquisitions of shares of capital stock of the Debenture Issuer (A) in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, (B) in connection with a dividend reinvestment or
stockholder stock purchase plan or (C) in connection with the issuance of
capital stock of the Debenture Issuer (or securities convertible into or
exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of any exchange, reclassification, combination or conversion of any class
or series of the Debenture Issuer's capital stock (or any capital stock of a
subsidiary of the Debenture Issuer) for any class or series of the Debenture
Issuer's capital stock or of any class or series of the Debenture Issuer's
indebtedness for any class or series of the Debenture Issuer's capital stock,
(c) the purchase of fractional interests in shares of the Debenture Issuer's
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged, (d) any declaration of a
dividend in connection with any stockholder's rights plan, or the issuance of
rights, stock or other property under any stockholder's rights plan, or the
redemption or repurchase of rights pursuant thereto, or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the
same stock as that on which the dividend is being paid or ranks pari passu with or junior to
such stock). Prior to the termination of any Extension Period, the Debenture
Issuer may further extend such period; provided, that such
period together with all such previous and further consecutive extensions
thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the
Maturity Date. Upon the termination of any Extension Period and upon the payment
of all Deferred Interest, the Debenture Issuer may commence a new Extension
Period, subject to the foregoing requirements. No interest or Deferred Interest
shall be due and payable during an Extension Period, except at the end thereof,
but Deferred Interest shall accrue upon each installment of interest that would
otherwise have been due and payable during such Extension Period until such
installment is paid. If Distributions are deferred, the Distributions due shall
be paid on the date that the related Extension Period terminates, or, if such
date is not a Distribution Payment Date, on the immediately following
Distribution Payment Date, to Holders of the Securities as they appear on the
books and records of the Trust on the record date immediately preceding such
date. Distributions on the Securities must be paid on the dates payable (after
giving effect to any Extension Period) to the extent that the Trust has funds
legally available for the payment of such distributions in the Property Account
of the Trust. The Trust's funds available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer. The
payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee.

     

    

    
      
        
          
            A-I-4

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Distributions
on the Securities will be payable to the Holders thereof as they appear on the
books and records of the Registrar on the relevant record dates. The relevant
record dates shall be 15 days before the relevant Distribution Payment Date.
Distributions payable on any Securities that are not punctually paid on any
Distribution Payment Date, as a result of the Debenture Issuer having failed to
make a payment under the Debentures, as the case may be, when due (taking into
account any Extension Period), will cease to be payable to the Person in whose
name such Securities are registered on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such
Securities are registered on the special record date or other specified date
determined in accordance with the Indenture.  Notwithstanding anything
to the contrary contained herein, if any Distribution Payment Date, other than
on the Maturity Date, Redemption Date (to the extent redeemed) or Special
Redemption Date, falls on a day that is not a Business Day, then any
Distributions payable will be paid on, and such Distribution Payment Date will
be moved to, the next succeeding Business Day, and additional Distributions will
accrue for each day that such payment is delayed as a result
thereof.  If the Maturity Date, Redemption Date or Special Redemption
Date falls on a day that is not a Business Day, then the principal, premium, if
any, and/or Distributions payable on such date will be paid on the next
succeeding Business Day, and no additional interest shall accrue (except that,
if such Business Day falls in the next calendar year, such payment will be made
on the immediately preceding Business Day).

     

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

     

    3.           Liquidation Distribution
Upon Dissolution.  In the event of the voluntary or involuntary
liquidation, dissolution, winding-up or termination of the Trust (each, a
"Liquidation") other than in connection with a redemption of the Debentures, the
Holders of the Securities will be entitled to receive out of the assets of the
Trust available for distribution to Holders of the Securities, after
satisfaction of liabilities to creditors of the Trust (to the extent not
satisfied by the Debenture Issuer), distributions equal to the aggregate of the
stated liquidation amount of $1,000 per Security plus accrued and unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"), unless in connection with such Liquidation, the Debentures in an
aggregate stated principal amount equal to the aggregate stated liquidation
amount of such Securities, with an interest rate equal to the Coupon Rate of,
and bearing accrued and unpaid interest in an amount equal to the accrued and
unpaid Distributions on, and having the same record date as, such Securities,
after paying or making reasonable provision to pay all claims and obligations of
the Trust in accordance with Section 3808(e) of the Statutory Trust Act, shall
be distributed on a Pro Rata basis to the Holders of the Securities in exchange
for such Securities.

     

    The
Sponsor, as the Holder of all of the Common Securities, has the right at any
time to dissolve the Trust (including without limitation upon the occurrence of
a Tax Event, an Investment Company Event or a Capital Treatment Event), subject
to the receipt by the Debenture Issuer of prior approval from any regulatory
authority having jurisdiction over the Sponsor that is primarily responsible for
regulating the activities of the Sponsor if such approval is then required under
applicable capital guidelines or policies of such regulatory authority, an
opinion of nationally recognized tax counsel that Holders will not recognize any
gain or loss for

     

    

    
      
        
          
            A-I-5

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    United
States federal income tax purposes as a result of the distribution of Debentures
and, after satisfaction of liabilities to creditors of the Trust, cause the
Debentures to be distributed to the Holders of the Securities on a Pro Rata
basis in accordance with the aggregate stated liquidation amount
thereof.

     

    The Trust
shall dissolve on the first to occur of (i) June 15, 2043, the expiration of the
term of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor, the
Trust or the Debenture Issuer, (iii) (other than in connection with a merger,
consolidation or similar transaction not prohibited by the Indenture, this
Declaration or the Guarantee, as the case may be) the filing of a certificate of
dissolution or its equivalent with respect to the Sponsor or upon the revocation
of the charter of the Sponsor and the expiration of 90 days after the date of
revocation without a reinstatement thereof, (iv) the distribution to the Holders
of the Securities of the Debentures, upon exercise of the right of the Holder of
all of the outstanding Common Securities to dissolve the Trust as described
above, (v) the entry of a decree of a judicial dissolution of the Sponsor or the
Trust, or (vi) when all of the Securities shall have been called for redemption
and the amounts necessary for redemption thereof shall have been paid to the
Holders in accordance with the terms of the Securities. As soon as practicable
after the dissolution of the Trust and upon completion of the winding up of the
Trust, the Trust shall terminate upon the filing of a certificate of
cancellation with the Secretary of State of the State of Delaware.

     

    If a
Liquidation of the Trust occurs as described in clause (i), (ii), (iii) or (v)
in the immediately preceding paragraph, the Trust shall be liquidated by the
Administrators of the Trust as expeditiously as the Administrators determine to
be possible by distributing, after satisfaction of liabilities to creditors of
the Trust as provided by applicable law, to the Holders of the Securities, the
Debentures on a Pro Rata basis to the extent not satisfied by the Debenture
Issuer, unless such distribution is determined by the Institutional Trustee not
to be practical, in which event such Holders will be entitled to receive out of
the assets of the Trust available for distribution to the Holders, after
satisfaction of liabilities to creditors of the Trust to the extent not
satisfied by the Debenture Issuer, an amount equal to the Liquidation
Distribution. An early Liquidation of the Trust pursuant to clause (iv) of the
immediately preceding paragraph shall occur if the Administrators determine that
such Liquidation is possible by distributing, after satisfaction of liabilities
to creditors of the Trust, to the Holders of the Securities on a Pro Rata basis,
the Debentures, and such distribution occurs.

     

    If, upon
any such Liquidation, the Liquidation Distribution can be paid only in part
because the Trust has insufficient assets available to pay in full the aggregate
Liquidation Distribution, then the amounts payable directly by the Trust on such
Capital Securities shall be paid to the Holders of the Securities on a Pro Rata
basis, except that if an Event of Default has occurred and is continuing, the
Capital Securities shall have a preference over the Common Securities with
regard to such distributions.

     

    Upon any
such Liquidation of the Trust involving a distribution of the Debentures, if at
the time of such Liquidation, the Capital Securities were rated by at least one
nationally-recognized statistical rating organization, the Debenture Issuer will
use its reasonable best efforts to obtain from at least one such or other rating
organization a rating for the Debentures.

     

    

    
      
        
          
            A-I-6

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    After the
date for any distribution of the Debentures upon dissolution of the Trust, (i)
the Securities of the Trust will be deemed to be no longer outstanding, (ii) any
certificates representing the Capital Securities will be deemed to represent
undivided beneficial interests in such of the Debentures as have an aggregate
principal amount equal to the aggregate stated liquidation amount of, with an
interest rate identical to the distribution rate of, and bearing accrued and
unpaid interest equal to accrued and unpaid distributions on, the Securities
until such certificates are presented to the Debenture Issuer or its agent for
transfer or reissuance (and until such certificates are so surrendered, no
payments of interest or principal shall be made to Holders of Securities in
respect of any payments due and payable under the Debentures) and (iii) all
rights of Holders of Securities under the Capital Securities or the Common
Securities, as applicable, shall cease, except the right of such Holders to
receive Debentures upon surrender of certificates representing such
Securities.

     

    4.           Redemption and
Distribution.

     

    (a)           The
Debentures will mature on June 15, 2038. The Debentures may be redeemed by the
Debenture Issuer, in whole or in part, on any March 15, June 15, September 15 or
December 15 on or after June 15, 2013 at the Redemption Price, upon not less
than 30 nor more than 60 days' notice to Holders of such Debentures. In
addition, upon the occurrence and continuation of a Tax Event, an Investment
Company Event or a Capital Treatment Event, the Debentures may be redeemed by
the Debenture Issuer in whole or in part, at any time within 90 days following
the occurrence of such Tax Event, Investment Company Event or Capital Treatment
Event, as the case may be (the "Special Redemption Date"), at the Special
Redemption Price, upon not less than 30 nor more than 60 days' notice to Holders
of the Debentures so long as such Tax Event, Investment Company Event or Capital
Treatment Event, as the case may be, is continuing. In each case, the right of
the Debenture Issuer to redeem the Debentures is subject to the Debenture Issuer
having received prior approval from any regulatory authority having jurisdiction
over the Debenture Issuer, if such approval is then required under applicable
capital guidelines or policies of such regulatory authority.

     

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

     

    

    
      
        
          
            A-I-7

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    applicable,
may now or hereafter accord Tier 1 Capital treatment in excess of the
amount which may now or hereafter qualify for treatment as Tier 1 Capital
under applicable capital adequacy guidelines; provided further, however, that the
distribution of the Debt Securities in connection with the liquidation of the
Trust by the Debenture Issuer shall not in and of itself constitute a Capital
Treatment Event unless such liquidation shall have occurred in connection with a
Tax Event or an Investment Company Event.

     

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

     

    "Redemption
Date" means the date fixed for the redemption of Capital Securities, which shall
be any March 15, June 15, September 15 or December 15 on or after June 15,
2013.

     

    "Redemption
Price" means 100% of the principal amount of the Debentures being redeemed plus
accrued and unpaid interest on such Debentures to the Redemption Date or, in the
case of a redemption due to the occurrence of a Special Event, to the Special
Redemption Date if such Special Redemption Date is on or after June 15,
2013.

     

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

     

    "Special
Redemption Price" means, with respect to the redemption of any Debt Security
following a Special Event, an amount in cash equal to 103.525% of the principal
amount of Debt Securities to be redeemed prior to June 15, 2009 and thereafter
equal to the percentage of the principal amount of the Debt Securities that is
specified below for the Special Redemption Date plus, in each case, unpaid
interest accrued thereon to the Special Redemption Date:

     

    
      	
              Special Redemption During the

              12-Month Period Beginning June
      15

            	
              Percentage of Principal
    Amount

            
	 
      	 
      
	
              2009

            	
              102.820%

            
	
              2010

            	
              102.115%

            
	
              2011

            	
              101.410%

            
	
              2012

            	
              100.705%

            
	
              2013
      and thereafter

            	
              100.000%

            

    

    

    "Tax
Event" means the receipt by the Debenture Issuer and the Trust of an opinion of
counsel experienced in such matters to the effect that, as a result of any
amendment to or change (including any announced prospective change) in the laws
or any regulations thereunder of the United States or any political subdivision
or taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical
advice

     

    

    
      
        
          
            A-I-8

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    memorandum,
regulatory procedure, notice or announcement) (an "Administrative Action") or
judicial decision interpreting or applying such laws or regulations, regardless
of whether such Administrative Action or judicial decision is issued to or in
connection with a proceeding involving the Debenture Issuer or the Trust and
whether or not subject to review or appeal, which amendment, clarification,
change, Administrative Action or decision is enacted, promulgated or announced,
in each case on or after the date of original issuance of the Debentures, there
is more than an insubstantial risk that: (i) the Trust is, or will be within 90
days of the date of such opinion, subject to United States federal income tax
with respect to income received or accrued on the Debentures; (ii) interest
payable by the Debenture Issuer on the Debentures is not, or within 90 days of
the date of such opinion, will not be, deductible by the Debenture Issuer, in
whole or in part, for United States federal income tax purposes; or (iii) the
Trust is, or will be within 90 days of the date of such opinion, subject to more
than a de minimis amount of other taxes (including withholding taxes), duties,
assessments or other governmental charges.

     

    (b)           Upon
the repayment in full at maturity or redemption in whole or in part of the
Debentures (other than following the distribution of the Debentures to the
Holders of the Securities), the proceeds from such repayment or payment shall
concurrently be applied to redeem Pro Rata at the applicable redemption price,
Securities having an aggregate liquidation amount equal to the aggregate
principal amount of the Debentures so repaid or redeemed; provided, however, that holders
of such Securities shall be given not less than 30 nor more than 60 days' notice
of such redemption (other than at the scheduled maturity of the
Debentures).

     

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

     

    (d)           The
Trust may not redeem fewer than all the outstanding Capital Securities unless
all accrued and unpaid Distributions have been paid on all Capital Securities
for all quarterly Distribution periods terminating on or before the date of
redemption.

     

    (e)           Redemption
or Distribution Procedures.

     

    (i)           Notice
of any redemption of, or notice of distribution of the Debentures in exchange
for, the Securities (a "Redemption/Distribution Notice") will be given by the
Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer
than 30 nor more than 60 days before the date fixed for redemption or exchange
thereof which, in the case of a redemption, will be the date fixed for
redemption of the Debentures. For purposes of the calculation of the date of
redemption or exchange and the dates on which notices are given pursuant to this
Section 4(e)(i), a Redemption/Distribution Notice shall be deemed to be given on
the day such notice is first mailed by first-class mail, postage prepaid, to
Holders of such Securities. Each Redemption/Distribution Notice shall be
addressed to the Holders of such Securities at the address of each such Holder
appearing on the books and records of the Registrar. No defect in the
Redemption/Distribution Notice or in the mailing thereof with respect to
any

     

    

    
      
        
          
            A-I-9

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Holder
shall affect the validity of the redemption or exchange proceedings with respect
to any other Holder.

     

    (ii)           In
the event that fewer than all the outstanding Securities are to be redeemed, the
Securities to be redeemed shall be redeemed Pro Rata from each Holder of Capital
Securities.

     

    (iii)           If
the Securities are to be redeemed and the Trust gives a Redemption/Distribution
Notice, which notice may only be issued if the Debentures are redeemed as set
out in this Section 4 (which notice will be irrevocable), then, provided, that
the Institutional Trustee has a sufficient amount of cash in connection with the
related redemption or maturity of the Debentures, the Institutional Trustee
will, with respect to Book-Entry Capital Securities, on the Redemption Date or
Special Redemption Date, as applicable, irrevocably deposit with the Depositary
for such Book-Entry Capital Securities, to the extent available therefor, funds
sufficient to pay the relevant Redemption Price or Special Redemption Price, as
applicable, and will give such Depositary irrevocable instructions and authority
to pay the Redemption Price or Special Redemption Price, as applicable, to the
Owners of the Capital Securities.  With respect to Capital Securities
that are not Book-Entry Capital Securities, the Institutional Trustee will pay,
to the extent available therefore, the relevant Redemption Price or Special
Redemption Price, as applicable, to the Holders of such Securities by check
mailed to the address of each such Holder appearing on the books and records of
the Trust on the redemption date. If a Redemption/Distribution Notice shall have
been given and funds deposited as required, then immediately prior to the close
of business on the date of such deposit, Distributions will cease to accrue on
the Securities so called for redemption and all rights of Holders of such
Securities so called for redemption will cease, except the right of the Holders
of such Securities to receive the applicable Redemption Price or Special
Redemption Price, as applicable, specified in Section 4(a). If any date fixed
for redemption of Securities is not a Business Day, then payment of any such
Redemption Price or Special Redemption Price, as applicable, payable on such
date will be made on the next succeeding day that is a Business Day except that,
if such Business Day falls in the next calendar year, such payment will be made
on the immediately preceding Business Day, in each case with the same force and
effect as if made on such date fixed for redemption. If payment of the
Redemption Price or Special Redemption Price, as applicable, in respect of any
Securities is improperly withheld or refused and not paid either by the Trust or
by the Debenture Issuer as guarantor pursuant to the Guarantee, Distributions on
such Securities will continue to accrue at the then applicable rate from the
original redemption date to the actual date of payment, in which case the actual
payment date will be considered the date fixed for redemption for purposes of
calculating the Redemption Price or Special Redemption Price, as applicable. In
the event of any redemption of the Capital Securities issued by the Trust in
part, the Trust shall not be required to (i) issue, register the transfer of or
exchange any Security during a period beginning at the opening of business 15
days before any selection for redemption of the Capital

     

    

    
      
        
          
            A-I-10

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Securities
and ending at the close of business on the earliest date on which the relevant
notice of redemption is deemed to have been given to all Holders of the Capital
Securities to be so redeemed or (ii) register the transfer of or exchange any
Capital Securities so selected for redemption, in whole or in part, except for
the unredeemed portion of any Capital Securities being redeemed in
part.

     

    (iv)           Redemption/Distribution
Notices shall be sent by the Administrators on behalf of the Trust (A) in
respect of the Capital Securities, to the Holders thereof, and (B) in respect of
the Common Securities, to the Holder thereof.

     

    (v)           Subject
to the foregoing and applicable law (including, without limitation, United
States federal securities laws), and provided, that the
acquiror is not the Holder of the Common Securities or the obligor under the
Indenture, the Sponsor or any of its subsidiaries may at any time and from time
to time purchase outstanding Capital Securities by tender, in the open market or
by private agreement.

     

    5.           Voting Rights - Capital
Securities.

     

    (a)           Except
as provided under Sections 5(b) and 7 and as otherwise required by law and the
Declaration, the Holders of the Capital Securities will have no voting rights.
The Administrators are required to call a meeting of the Holders of the Capital
Securities if directed to do so by Holders of not less than 10% in liquidation
amount of the Capital Securities.

     

    (b)           Subject
to the requirements of obtaining a tax opinion by the Institutional Trustee in
certain circumstances set forth in the last sentence of this paragraph, the
Holders of a Majority in liquidation amount of the Capital Securities, voting
separately as a class, have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Institutional Trustee,
or exercising any trust or power conferred upon the Institutional Trustee under
the Declaration, including the right to direct the Institutional Trustee, as
holder of the Debentures, to (i) exercise the remedies available under the
Indenture as the holder of the Debentures, (ii) waive any past default that is
waivable under the Indenture, (iii) exercise any right to rescind or annul a
declaration that the principal of all the Debentures shall be due and payable or
(iv) consent on behalf of all the Holders of the Capital Securities to any
amendment, modification or termination of the Indenture or the Debentures where
such consent shall be required; provided, however, that, where
a consent or action under the Indenture would require the consent or act of the
holders of greater than a simple majority in principal amount of Debentures (a
"Super Majority") affected thereby, the Institutional Trustee may only give such
consent or take such action at the written direction of the Holders of not less
than the proportion in liquidation amount of the Capital Securities outstanding
which the relevant Super Majority represents of the aggregate principal amount
of the Debentures outstanding. If the Institutional Trustee fails to enforce its
rights under the Debentures after the Holders of a Majority or Super Majority,
as the case may be, in liquidation amount of such Capital Securities have so
directed the Institutional Trustee, to the fullest extent permitted by law, a
Holder of the Capital Securities may institute a legal proceeding directly
against the Debenture Issuer to enforce the Institutional Trustee's rights under
the Debentures without first instituting any legal proceeding against
the

     

    

    
      
        
          
            A-I-11

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Institutional
Trustee or any other person or entity. Notwithstanding the foregoing, if an
Event of Default has occurred and is continuing and such event is attributable
to the failure of the Debenture Issuer to pay interest or premium, if any, on or
principal of the Debentures on the date such interest, premium, if any, on or
principal is payable (or in the case of redemption, the redemption date), then a
Holder of record of the Capital Securities may directly institute a proceeding
for enforcement of payment, on or after the respective due dates specified in
the Debentures, to such Holder directly of the principal of or premium, if any,
or interest on the Debentures having an aggregate principal amount equal to the
aggregate liquidation amount of the Capital Securities of such Holder. The
Institutional Trustee shall notify all Holders of the Capital Securities of any
default actually known to the Institutional Trustee with respect to the
Debentures unless (x) such default has been cured prior to the giving of such
notice or (y) the Institutional Trustee determines in good faith that the
withholding of such notice is in the interest of the Holders of such Capital
Securities, except where the default relates to the payment of principal of or
interest on any of the Debentures. Such notice shall state that such Indenture
Event of Default also constitutes an Event of Default hereunder. Except with
respect to directing the time, method and place of conducting a proceeding for a
remedy, the Institutional Trustee shall not take any of the actions described in
clause (i), (ii) or (iii) above unless the Institutional Trustee has obtained an
opinion of tax counsel to the effect that, as a result of such action, the Trust
will not be classified as other than a grantor trust for United States federal
income tax purposes.

     

    In the
event the consent of the Institutional Trustee, as the holder of the Debentures
is required under the Indenture with respect to any amendment, modification or
termination of the Indenture, the Institutional Trustee shall request the
written direction of the Holders of the Securities with respect to such
amendment, modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation
amount of the Securities voting together as a single class; provided, however, that where a
consent under the Indenture would require the consent of a Super Majority, the
Institutional Trustee may only give such consent at the written direction of the
Holders of not less than the proportion in liquidation amount of such Securities
outstanding which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding. The Institutional Trustee shall
not take any such action in accordance with the written directions of the
Holders of the Securities unless the Institutional Trustee has obtained an
opinion of tax counsel to the effect that, as a result of such action, the Trust
will not be classified as other than a grantor trust for United States federal
income tax purposes.

     

    A waiver
of an Indenture Event of Default will constitute a waiver of the corresponding
Event of Default hereunder. Any required approval or direction of Holders of the
Capital Securities may be given at a separate meeting of Holders of the Capital
Securities convened for such purpose, at a meeting of all of the Holders of the
Securities in the Trust or pursuant to written consent. The Institutional
Trustee will cause a notice of any meeting at which Holders of the Capital
Securities are entitled to vote, or of any matter upon which action by written
consent of such Holders is to be taken, to be mailed to each Holder of record of
the Capital Securities. Each such notice will include a statement setting forth
the following information (i) the date of such meeting or the date by which such
action is to be taken, (ii) a description of any resolution proposed for
adoption at such meeting on which such Holders are entitled to vote or of such
matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or

     

    

    
      
        
          
            A-I-12

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

    Notwithstanding
that Holders of the Capital Securities are entitled to vote or consent under any
of the circumstances described above, any of the Capital Securities that are
owned by the Sponsor or any Affiliate of the Sponsor shall not entitle the
Holder thereof to vote or consent and shall, for purposes of such vote or
consent, be treated as if such Capital Securities were not
outstanding.

     

    In no
event will Holders of the Capital Securities have the right to vote to appoint,
remove or replace the Administrators, which voting rights are vested exclusively
in the Sponsor as the Holder of all of the Common Securities of the Trust. Under
certain circumstances as more fully described in the Declaration, Holders of
Capital Securities have the right to vote to appoint, remove or replace the
Institutional Trustee and the Delaware Trustee.

     

    6.           Voting Rights - Common
Securities.

     

    (a)           Except
as provided under Sections 6(b), 6(c) and 7 and as otherwise required by law and
the Declaration, the Common Securities will have no voting rights.

     

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

     

    (c)           Subject
to Section 6.8 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived or otherwise
eliminated and subject to the requirements of the second to last sentence of
this paragraph, the Holders of a Majority in liquidation amount of the Common
Securities, voting separately as a class, may direct the time, method, and place
of conducting any proceeding for any remedy available to the Institutional
Trustee, or exercising any trust or power conferred upon the Institutional
Trustee under the Declaration, including (i) directing the time, method, place
of conducting any proceeding for any remedy available to the Debenture Trustee,
or exercising any trust or power conferred on the Debenture Trustee with respect
to the Debentures, (ii) waiving any past default and its consequences that are
waivable under the Indenture, or (iii) exercising any right to rescind or annul
a declaration that the principal of all the Debentures shall be due and payable,
provided, however, that, where a consent or action under the Indenture would
require a Super Majority, the Institutional Trustee may only give such consent
or take such action at the written direction of the Holders of not less than the
proportion in liquidation amount of the Common Securities which the relevant
Super Majority represents of the aggregate principal amount of the Debentures
outstanding. Notwithstanding this Section 6(c), the Institutional Trustee shall
not revoke any action previously authorized or approved by a vote or consent of
the Holders of the Capital Securities. Other than with respect to directing the
time, method and place of conducting any proceeding for any remedy available to
the Institutional Trustee or the Debenture Trustee as set forth above, the
Institutional Trustee shall not take any action described in clause (i), (ii) or
(iii) above, unless the Institutional Trustee has obtained an opinion of tax
counsel to the effect that for the purposes of United States federal income tax
the Trust will not be classified as other than a grantor trust on account of
such action. If the Institutional Trustee fails to enforce its
rights

     

    

    
      
        
          
            A-I-13

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    under the
Declaration, to the fullest extent permitted by law any Holder of the Common
Securities may institute a legal proceeding directly against any Person to
enforce the Institutional Trustee's rights under the Declaration, without first
instituting a legal proceeding against the Institutional Trustee or any other
Person.

     

    Any
approval or direction of Holders of the Common Securities may be given at a
separate meeting of Holders of the Common Securities convened for such purpose,
at a meeting of all of the Holders of the Securities in the Trust or pursuant to
written consent. The Administrators will cause a notice of any meeting at which
Holders of the Common Securities are entitled to vote, or of any matter upon
which action by written consent of such Holders is to be taken, to be mailed to
each Holder of the Common Securities. Each such notice will include a statement
setting forth (i) the date of such meeting or the date by which such action is
to be taken, (ii) a description of any resolution proposed for adoption at such
meeting on which such Holders are entitled to vote or of such matter upon which
written consent is sought and (iii) instructions for the delivery of proxies or
consents.

     

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

     

    7.           Amendments to Declaration
and Indenture.

     

    (a)           In
addition to any requirements under Section 11.1 of the Declaration, if any
proposed amendment to the Declaration provides for, or the Trustees otherwise
propose to effect, (i) any action that would adversely affect the powers,
preferences or special rights of the Securities, whether by way of amendment to
the Declaration or otherwise, or (ii) the Liquidation of the Trust, other than
as described in Section 7.1 of the Declaration, then the Holders of outstanding
Securities, voting together as a single class, will be entitled to vote on such
amendment or proposal and such amendment or proposal shall not be effective
except with the approval of the Holders of not less than a Majority in
liquidation amount of the Securities affected thereby; provided, however, if any
amendment or proposal referred to in clause (i) above would adversely affect
only the Capital Securities or only the Common Securities, then only the
affected class will be entitled to vote on such amendment or proposal and such
amendment or proposal shall not be effective except with the approval of a
Majority in liquidation amount of such class of Securities.

     

    (b)           In
the event the consent of the Institutional Trustee as the holder of the
Debentures is required under the Indenture with respect to any amendment,
modification or termination of the Indenture or the Debentures, the
Institutional Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and shall
vote with respect to such amendment, modification, or termination as directed by
a Majority in liquidation amount of the Securities voting together as a single
class; provided, however, that where a consent under the Indenture would require
a Super Majority, the Institutional Trustee may only give such consent at the
written direction of the Holders of not less than the proportion in liquidation
amount of the Securities which the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding.

     

    

    
      
        
          
            A-I-14

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Notwithstanding
the foregoing, no amendment or modification may be made to the Declaration if
such amendment or modification would (i) cause the Trust to be classified for
purposes of United States federal income taxation as other than a grantor trust,
(ii) reduce or otherwise adversely affect the powers of the Institutional
Trustee or (iii) cause the Trust to be deemed an "investment company" which is
required to be registered under the Investment Company Act.

     

    (c)           Notwithstanding
any provision of the Declaration, the right of any Holder of the Capital
Securities to receive payment of distributions and other payments upon
redemption or otherwise, on or after their respective due dates, or to institute
a suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder. For
the protection and enforcement of the foregoing provision, each and every Holder
of the Capital Securities shall be entitled to such relief as can be given
either at law or equity.

     

    8.           Pro
Rata.  A reference in these terms of the Securities to any
payment, distribution or treatment as being "Pro Rata" shall mean pro rata to
each Holder of the Securities according to the aggregate liquidation amount of
the Securities held by the relevant Holder in relation to the aggregate
liquidation amount of all Securities outstanding unless, in relation to a
payment, an Event of Default has occurred and is continuing, in which case any
funds available to make such payment shall be paid first to each Holder of the
Capital Securities Pro Rata according to the aggregate liquidation amount of the
Capital Securities held by the relevant Holder relative to the aggregate
liquidation amount of all Capital Securities outstanding, and only after
satisfaction of all amounts owed to the Holders of the Capital Securities, to
each Holder of the Common Securities Pro Rata according to the aggregate
liquidation amount of the Common Securities held by the relevant Holder relative
to the aggregate liquidation amount of all Common Securities
outstanding.

     

    9.           Ranking.  The
Capital Securities rank pari passu with, and payment thereon shall be made Pro
Rata with, the Common Securities except that, where an Event of Default has
occurred and is continuing, the rights of Holders of the Common Securities to
receive payment of Distributions and payments upon liquidation, redemption and
otherwise are subordinated to the rights of the Holders of the Capital
Securities with the result that no payment of any Distribution on, or Redemption
Price or Special Redemption Price of, any Common Security, and no other payment
on account of redemption, liquidation or other acquisition of Common Securities,
shall be made unless payment in full in cash of all accumulated and unpaid
Distributions on all outstanding Capital Securities for all distribution periods
terminating on or prior thereto, or in the case of payment of the Redemption
Price or Special Redemption Price the full amount of such Redemption Price or
the Special Redemption Price on all outstanding Capital Securities then called
for redemption, shall have been made or provided for, and all funds immediately
available to the Institutional Trustee shall first be applied to the payment in
full in cash of all Distributions on, or the Redemption Price or the Special
Redemption Price of, the Capital Securities then due and payable.

     

    10.           Acceptance of Guarantee and
Indenture.  Each Holder of the Capital Securities and the
Common Securities, by the acceptance of such Securities, agrees to the
provisions of the Guarantee, including the subordination provisions therein and
to the provisions of the Indenture.

     

    

    
      
        
          
            A-I-15

          

           

        

        
           

          
            

          

        

        
           

        

      

    

     

     

           11.    No Preemptive Rights.  The
Holders of the Securities shall have no, and the issuance of the Securities is
not subject to, preemptive or similar rights to subscribe for any additional
securities.

     

    12.           Miscellaneous.  These
terms constitute a part of the Declaration. The Sponsor will provide a copy of
the Declaration, the Guarantee, and the Indenture to a Holder without charge on
written request to the Sponsor at its principal place of business.

     

    

    
      
        
          
            A-I-16

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
A-1

     

    FORM
OF CAPITAL SECURITY CERTIFICATE

     

    [FORM OF
FACE OF SECURITY]

     

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

     

    UNLESS
THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO
CITY HOLDING CAPITAL TRUST III OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

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

     

    

    
      
        
          
            A-1-1

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE DEBENTURE ISSUER'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY
OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

     

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

     

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

     

    

    
      
        
          
            A-1-2

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

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

     

    

    
      
        
          
            A-1-3

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Certificate
Number                                           [P-001]                                                                              Number
of Capital Securities 16,000

     

    CUSIP NO:
_______________

     

    Certificate
Evidencing Capital Securities

     

    of

     

    City
Holding Capital Trust III

     

    Capital
Securities

     

    (liquidation
amount $1,000 per Capital Security)

     

    City
Holding Capital Trust III, a statutory trust created under the laws of the State
of Delaware (the "Trust"), hereby certifies that Cede & Co., as nominee on
behalf of The Depository Trust Company (the "Holder"), is the registered owner
of 16,000 capital securities of the Trust representing undivided beneficial
interests in the assets of the Trust, designated the capital securities
(liquidation amount $1,000 per Capital Security) (the "Capital Securities").
Subject to the Declaration (as defined below), the Capital Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this Certificate duly endorsed and in
proper form for transfer. The Capital Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities shall in all respects
be subject to, the provisions of the Amended and Restated Declaration of Trust
of the Trust, dated as of March 27, 2008, among David L. Bumgarner and Dewey E.
S. Kuhns, II, as Administrators, Wells Fargo Delaware Trust Company, as Delaware
Trustee, Wells Fargo Bank, National Association, as Institutional Trustee, City
Holding Company, as Sponsor, and the holders from time to time of undivided
beneficial interests in the assets of the Trust, including the designation of
the terms of the Capital Securities as set forth in Annex I to the Declaration,
as the same may be amended from time to time (the "Declaration"). Capitalized
terms used herein but not defined shall have the meaning given them in the
Declaration. The Holder is entitled to the benefits of the Guarantee to the
extent provided therein. The Sponsor will provide a copy of the Declaration, the
Guarantee, and the Indenture to the Holder without charge upon written request
to the Sponsor at its principal place of business.

     

    By
acceptance of this Security, the Holder is bound by the Declaration and is
entitled to the benefits thereunder.

     

    By
acceptance of this Security, the Holder agrees to treat, for United States
federal income tax purposes, the Debentures as indebtedness and the Capital
Securities as evidence of beneficial ownership in the Debentures.

     

    This
Capital Security is governed by, and shall be construed in accordance with, the
laws of the State of Delaware, without regard to principles of conflict of
laws.

     

    

    
      
        
          
            A-1-4

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

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

     

             City Holding Capital Trust
III

    

    

    

    
      	
              By:

            	 
      
	
              Name:

            	 
      
	
              Title:

            	
              Administrator

            

    

    

    

    

    
      	
              Dated:

            	 
      

    

    

     

    CERTIFICATE
OF AUTHENTICATION

     

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

     

    
      	
              WELLS
      FARGO BANK, NATIONAL

            
	
              ASSOCIATION,

            
	
               not
      in its individual capacity but solely as the Institutional
      Trustee

            

    

    

    

    
      	
              By:

            	 
      
	 
      	
              Authorized
      Officer

            
	
              Dated

            	 
      

    

    

    

    

    
      
        
          
            A-1-5

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    [FORM OF
REVERSE OF SECURITY]

     

    Distributions
payable on each Capital Security will be payable at a variable per annum rate of
interest, reset quarterly, equal to LIBOR (as defined in the Declaration) plus
3.5% (the "Coupon Rate") of the stated liquidation amount of $1,000 per Capital
Security (provided, however, that the Coupon Rate for any Distribution Payment
Period may not exceed the highest rate permitted by New York law, as the same
may be modified by United States law of general applicability), such Coupon Rate
being the rate of interest payable on the Debentures to be held by the
Institutional Trustee.  Distributions in arrears for more than one
quarterly period will bear interest thereon compounded quarterly at the then
applicable Coupon Rate for each such quarterly period (to the extent permitted
by applicable law). The term "Distributions" as used herein includes cash
distributions, any such compounded distributions and any Additional Interest
payable on the Debentures unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year and the actual number of days elapsed in
the relevant Distribution Payment Period.

     

    Except as
otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on March 15, June 15, September 15 and December 15 of each
year, commencing on June 15, 2008 (each, a "Distribution Payment Date"). Upon
submission of Notice (as defined in the Indenture) and so long as no Event of
Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of the
Indenture has occurred and is continuing, the Debenture Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest distribution period for up to 20 consecutive quarterly periods
(each, an "Extension Period") at any time and from time to time on the
Debentures, subject to the conditions described below, during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable). During any Extension Period, interest will continue to
accrue on the Debentures, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as "Deferred Interest") will
accrue at an annual rate equal to the Coupon Rate in effect for each such
Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by law. No Extension Period may end on a date other than a
Distribution Payment Date. At the end of any such Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that no
Extension Period may extend beyond the Maturity Date, Redemption Date (to the
extent redeemed) or Special Redemption Date. Prior to the termination of any
Extension Period, the Debenture Issuer may further extend such period, provided, that such
period together with all such previous and further consecutive extensions
thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the
Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption
Date. Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Debenture Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest or Deferred Interest (except
any Additional Interest that may be due and payable) shall be due and payable
during an Extension Period, except at the end thereof, but Deferred Interest
shall accrue upon each installment of interest that would otherwise have been
due and payable during such

     

    

    
      
        
          
            A-1-6

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Extension
Period until such installment is paid. If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates to Holders of the Securities as they appear on the books and records
of the Trust on the record date immediately preceding such date. Distributions
on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for
the payment of such distributions in the Property Account of the Trust. The
Trust's funds available for Distribution to the Holders of the Securities will
be limited to payments received from the Debenture Issuer. The payment of
Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

     

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

     

    

    
      
        
          
            A-1-7

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ASSIGNMENT

     

    FOR VALUE
RECEIVED, the undersigned assigns and transfers this Capital Security
Certificate to:

     

    
      	 
      
	 
      
	 
      

    

    (Insert
assignee's social security or tax identification number)

     

    
      	 
      
	 
      
	 
      

    

     (Insert
address and zip code of assignee),

     

    and
irrevocably appoints

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

     

    Date: __________________________________________                                                               

     

    Signature:   _____________________________________                                                    

     

    (Sign
exactly as your name appears on the other side of this Capital Security
Certificate)

     

    Signature Guarantee:1    __________________________________________________                                                                                         

     

    

      

    

      
      1
Signature must be guaranteed by an "eligible guarantor institution" that is a
bank, stockbroker, savings and loan association or credit union meeting the
requirements of the Security registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Security
registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended.

    

    

    
      
        
          
            A-1-8

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    EXHIBIT
A-2

     

    FORM OF
COMMON SECURITY CERTIFICATE

     

    THIS
COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS
AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT
TO AN EXEMPTION FROM REGISTRATION.

     

    EXCEPT AS
SET FORTH IN SECTION 8.1 (b) OF THE DECLARATION (AS DEFINED BELOW), THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED.

     

    

    
      
        
          
            A-2-1

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Certificate
Number                                           [C-001]                                                                              Number
of Common Securities  495

     

    Certificate
Evidencing Common Securities

     

    of

     

    City
Holding Capital Trust III

     

    City
Holding Capital Trust III, a statutory trust created under the laws of the State
of Delaware (the "Trust"), hereby certifies that City Holding Company (the
"Holder") is the registered owner of 495 common securities of the Trust
representing undivided beneficial interests in the assets of the Trust
(liquidation amount $1,000 per Common Security) (the "Common Securities"). The
Common Securities represented hereby are issued pursuant to, and the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of March 27, 2008, among David L. Bumgarner and Dewey E. S. Kuhns, II, as
Administrators, Wells Fargo Delaware Trust Company, as Delaware Trustee, Wells
Fargo Bank, National Association, as Institutional Trustee, the Holder, as
Sponsor, and the holders from time to time of undivided beneficial interests in
the assets of the Trust, including the designation of the terms of the Common
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the "Declaration"). Capitalized terms used herein but
not defined shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of
business.

     

    As set
forth in the Declaration, when an Event of Default has occurred and is
continuing, the rights of Holders of Common Securities to payment in respect of
Distributions and payments upon Liquidation, redemption or otherwise are
subordinated to the rights of payment of Holders of the Capital
Securities.

     

    By
acceptance of this Certificate, the Holder is bound by the Declaration and is
entitled to the benefits thereunder.

     

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

     

    This
Common Security is governed by, and shall be construed in accordance with, the
laws of the State of Delaware, without regard to principles of conflict of
laws.

     

    

    
      
        
          
            A-2-2

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, the Trust has executed this certificate as of this _____ day of
_______________, 2008.

     

             City Holding Capital Trust
III

    

    

    

    
      	
              By:

            	 
      
	
              Name:

            	 
      
	
              Title:

            	
              Administrator

            

    

    

    

    
      
        
          
            A-2-3

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    [FORM OF
REVERSE OF SECURITY]

     

    Distributions
payable on each Common Security will be identical in amount to the Distributions
payable on each Capital Security, which is at a variable per annum rate of
interest, reset quarterly, equal to LIBOR (as defined in the Declaration) plus
3.5% (the "Coupon Rate") of the stated liquidation amount of $1,000 per Capital
Security (provided, however, that the Coupon Rate for any Distribution Payment
Period may not exceed the highest rate permitted by New York law, as the same
may be modified by United States law of general applicability), such Coupon Rate
being the rate of interest payable on the Debentures to be held by the
Institutional Trustee. Distributions in arrears for more than one quarterly
period will bear interest thereon compounded quarterly at the then applicable
Coupon Rate for each such quarterly period (to the extent permitted by
applicable law). The term "Distributions" as used herein includes cash
distributions, any such compounded distributions and any Additional Interest
payable on the Debentures unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year and the actual number of days elapsed in
the relevant Distribution Payment Period.

     

    Except as
otherwise described below, Distributions on the Common Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on March 15, June 15, September 15 and December 15 of each
year, commencing on June 15, 2008 (each, a "Distribution Payment Date"). Upon
submission of Notice (as defined in the Indenture) and so long as no Event of
Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of the
Indenture has occurred and is continuing, the Debenture Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest distribution period for up to 20 consecutive quarterly periods
(each, an "Extension Period") at any time and from time to time on the
Debentures, subject to the conditions described below, during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable). During any Extension Period, interest will continue to
accrue on the Debentures, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as "Deferred Interest") will
accrue at an annual rate equal to the Coupon Rate in effect for each such
Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by law. No Extension Period may end on a date other than a
Distribution Payment Date. At the end of any such Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that no Extension Period may extend beyond the
Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption
Date. Prior to the termination of any Extension Period, the Debenture Issuer may
further extend such period, provided, that such period together with all such
previous and further consecutive extensions thereof shall not exceed 20
consecutive quarterly periods, or extend beyond the Maturity Date, Redemption
Date (to the extent redeemed) or Special Redemption Date. Upon the termination
of any Extension Period and upon the payment of all Deferred Interest, the
Debenture Issuer may commence a new Extension Period, subject to the foregoing
requirements. No interest or Deferred Interest (except any Additional Interest
that may be due and payable) shall be due and payable during an Extension
Period, except at the end thereof, but Deferred Interest shall
accrue

     

    

    
      
        
          
            A-2-4

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    upon each
installment of interest that would otherwise have been due and payable during
such Extension Period until such installment is paid. If Distributions are
deferred, the Distributions due shall be paid on the date that the related
Extension Period terminates to Holders of the Securities as they appear on the
books and records of the Trust on the record date immediately preceding such
date.

     

    Distributions
on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for
the payment of such distributions in the Property Account of the Trust. The
Trust's funds legally available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer. The
payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee.

     

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

     

    

    
      
        
          
            A-2-5

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    ASSIGNMENT

     

    FOR VALUE
RECEIVED, the undersigned assigns and transfers this Common Security Certificate
to:

     

    
      	 
      
	 
      
	 
      

    

    (Insert
assignee's social security or tax identification number)

     

    
      	 
      
	 
      
	 
      

    

    (Insert
address and zip code of assignee),

     

    and
irrevocably appoints ________ as agent to transfer this Common Security
Certificate on the books of the Trust. The agent may substitute another to act
for him or her.

     

    
      Date: __________________________________________                                                               

       

      Signature:   _____________________________________                                                    

       

      (Sign
exactly as your name appears on the other side of this Capital Security
Certificate)

       

    

    Signature Guarantee:2
_________________________________________

     

    

      

    

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

    

     

     

     

    
      A-2-6

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