Document:

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                                                                   Exhibit 10.40
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                              ACE CAPITAL TRUST I

                              AMENDED AND RESTATED
                                TRUST AGREEMENT

                                     AMONG

                             ACE INA HOLDINGS INC.,
                                  AS DEPOSITOR

                 BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,
                              AS PROPERTY TRUSTEE

                            BANK ONE DELAWARE, INC.,
                              AS DELAWARE TRUSTEE

                                      AND

                    THE ADMINISTRATIVE TRUSTEES NAMED HEREIN

                         DATED AS OF DECEMBER 20, 1999

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                                       1
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                              ACE Capital Trust I

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

<TABLE>
<CAPTION>
                                                                           Trust
Trust Indenture                                                        Agreement
Act Section                                                              Section
-----------                                                              -------
<S>                                                               <C>
(S)310(a)(1)                                                                 8.7
(a)(2)                                                                       8.7
(a)(3)                                                                       8.9
(a)(4)                                                                2.7(a)(ii)
(b)                                                                          8.8
(S)311(a)                                                                   8.13
(b)                                                                         8.13
(S)312(a)                                                                    5.7
(b)                                                                          5.7
(c)                                                                          5.7
(S)313(a)                                                                8.14(a)
(a)(4)                                                                   8.14(b)
(b)                                                                      8.14(b)
(c)                                                                         10.8
(d)                                                                      8.14(c)
(S)314(a)                                                                   8.15
(b)                                                               Not Applicable
(c)(1)                                                                      8.16
(c)(2)                                                                      8.16
(c)(3)                                                            Not Applicable
(d)                                                               Not Applicable
(e)                                                                    1.1, 8.16
(S)315(a)                                                         8.1(a), 8.3(a)
(b)                                                                    8.2, 10.8
(c)                                                                       8.1(a)
(d)                                                                     8.1, 8.3
(e)                                                               Not Applicable
(S)316(a)                                                         Not Applicable
(a)(1)(A)                                                         Not Applicable
(a)(1)(B)                                                         Not Applicable
(a)(2)                                                            Not Applicable
(b)                                                               Not Applicable
(c)                                                                          6.7
(S)317(a)(1)                                                      Not Applicable
(a)(2)                                                            Not Applicable
(b)                                                                          5.9
</TABLE>

                                       2
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<TABLE>
<S>                                                               <C>
(S)318(a)                                                                  10.10
</TABLE>

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

                                       3
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                               Table of Contents

<TABLE>
<CAPTION>
                                                                                         Page
                                                                                         ----
<S>                                                                                      <C>
                                       ARTICLE I.
                                     DEFINED TERMS

Section 1.1 Definitions                                                                    2

                                       ARTICLE II.
                                ESTABLISHMENT OF THE TRUST

Section 2.1 Name                                                                          10
Section 2.2 Office of the Delaware Trustee; Principal Place of Business                   10
Section 2.3 Initial Contribution of Trust Property; Organizational Expenses               10
Section 2.4 Issuance of the Preferred Securities                                          10
Section 2.5 Issuance of the Common Securities; Subscription and Purchase of Debentures    11
Section 2.6 Declaration of Trust                                                          11
Section 2.7 Authorization to enter into Certain Transactions                              12
Section 2.8 Assets of Trust                                                               15
Section 2.9 Title to Trust Property                                                       15

                                       ARTICLE III.
                                     PAYMENT ACCOUNT

Section 3.1 Payment Account                                                               15

                                       ARTICLE IV.
                          CERTAIN TERMS OF THE TRUST SECURITIES

Section 4.1 Distributions                                                                 16
Section 4.2 Redemption                                                                    17
Section 4.3 Subordination of Common Securities                                            19
Section 4.4 Payment Procedures                                                            20
Section 4.5 Tax Returns and Reports                                                       20
Section 4.6 Payment of Taxes, Duties, etc. of the Trust                                   21
Section 4.7 Payments under Indenture                                                      21

                                        ARTICLE V.
                              TRUST SECURITIES CERTIFICATES

Section 5.1 Initial Ownership                                                             21
Section 5.2 The Trust Securities Certificates                                             21
Section 5.3 Execution and Delivery of Trust Securities Certificates                       21
Section 5.4 Registration of Transfer and Exchange of Preferred Securities Certificates    22
</TABLE>

                                       4
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<TABLE>
<S>                                                                                      <C>
Section 5.5 Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates            22
Section 5.6 Persons Deemed Securityholders                                                23
Section 5.7 Access to List of Securityholders' Names and Addresses                        23
Section 5.8 Maintenance of Office or Agency                                               23
Section 5.9 Appointment of Paying Agent                                                   24
Section 5.10 Ownership of Common Securities by Depositor                                  24
Section 5.11 Book-Entry Preferred Securities Certificates; Common Securities Certificate  25
Section 5.12 Notices to Clearing Agency                                                   26
Section 5.13 Definitive Preferred Securities Certificates                                 26
Section 5.14 Rights of Securityholders                                                    26

                                       ARTICLE VI.
                        ACTS OF SECURITYHOLDERS; MEETINGS; VOTING

Section 6.1 Limitations on Voting Rights                                                  29
Section 6.2 Notice of Meetings                                                            30
Section 6.3 Meetings of Preferred Securityholders                                         30
Section 6.4 Voting Rights                                                                 30
Section 6.5 Proxies, etc.                                                                 31
Section 6.6 Securityholder Action by Written Consent                                      31
Section 6.7 Record Date for Voting and Other Purposes                                     31
Section 6.8 Acts of Securityholders                                                       31
Section 6.9 Inspection of Records                                                         32

                                       ARTICLE VII.
                              REPRESENTATIONS AND WARRANTIES

Section 7.1 Representations and Warranties of the Property Trustee and the
              Delaware Trustee                                                            32
Section 7.2 Representations and Warranties of Depositor                                   34

                                      ARTICLE VIII.
                                       THE TRUSTEES

Section 8.1 Certain Duties and Responsibilities                                           34
Section 8.2 Certain Notices                                                               35
Section 8.3 Certain Rights of Property Trustee                                            35
Section 8.4 Not Responsible for Recitals or Issuance of Securities                        37
Section 8.5 May hold Securities                                                           37
Section 8.6 Compensation; Indemnity; Fees                                                 38
Section 8.7 Corporate Property Trustee Required; Eligibility of Trustees                  38
Section 8.8 Conflicting Interests                                                         39
Section 8.9 Co-Trustees and Separate Trustee                                              39
Section 8.10 Resignation and Removal; Appointment of Successor                            40
Section 8.11 Acceptance of Appointment by Successor                                       42
Section 8.12 Merger, Conversion, Consolidation or Succession to Business                  43
</TABLE>

                                       5
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<TABLE>
<S>                                                                                      <C>
Section 8.13 Preferential Collection of Claims Against Depositor,
                Debenture Issuer or Trust                                                 43
Section 8.14 Reports by Property Trustee                                                  43
Section 8.15 Reports to the Property Trustee                                              44
Section 8.16 Evidence of Compliance with Conditions Precedent                             44
Section 8.17 Number of Trustees                                                           44
Section 8.18 Delegation of Power                                                          44
</TABLE>

                                       6
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<TABLE>
<S>                                                                                      <C>
                                       ARTICLE IX.
                     DISSOLUTION, LIQUIDATION, TERMINATION AND MERGER

Section 9.1 Dissolution upon Expiration Date                                              45
Section 9.2 Early Dissolution                                                             45
Section 9.3 Termination                                                                   45
Section 9.4 Liquidation                                                                   46
Section 9.5 Mergers, Consolidations, Amalgamations or Replacements of the Trust           47

                                        ARTICLE X.
                                 MISCELLANEOUS PROVISIONS

Section 10.1 Limitation of Rights of Securityholders                                      48
Section 10.2 Amendment                                                                    48
Section 10.3 Separability                                                                 49
Section 10.4 Governing Law                                                                49
Section 10.5 Payments due on Non-Business Day                                             50
Section 10.6 Successors                                                                   50
Section 10.7 Headings                                                                     50
Section 10.8 Reports, Notices and Demands                                                 50
Section 10.9 Agreement not to Petition                                                    51
Section 10.10 Trust Indenture Act; Conflict with Trust Indenture Act                      51
Section 10.11 Acceptance of Terms of Trust Agreement, Guarantee and Indenture             52
</TABLE>

Exhibit A-1  Certificate of Trust of ACE Capital Trust I
Exhibit A-2  Assignment and Assumption Agreement and First Amendment to the
             Trust Agreement of ACE Capital Trust I
Exhibit B    Form of Certificate Depository Agreement Pertaining to the Trust
             Originated Preferred Securities
Exhibit C    Form of Common Security Certificate
Exhibit D    Form of Agreement as to Expenses and Liabilities
Exhibit E    Form of Preferred Security Certificate

                                       7
<PAGE>

          AMENDED AND RESTATED TRUST AGREEMENT, dated as of December 20, 1999,
among (i) ACE INA HOLDINGS INC., a corporation duly organized and existing under
the laws of the State of Delaware (including any successors or assigns, the
"Depositor"), (ii) BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION, previously
known as The First National Bank of Chicago, a national banking association duly
organized and existing under the laws of the United States, as property trustee
(the "Property Trustee" and, in its individual capacity and not in its capacity
as Property Trustee, the "Bank"), (iii) BANK ONE DELAWARE, INC., a Delaware
corporation, as Delaware trustee (in such capacity, the "Delaware Trustee,"),
(iv) Robert A. Blee, an individual, and Christopher Z. Marshall, an individual,
each of whose address is c/o ACE Limited, The ACE Building, 30 Woodbourne
Avenue, Hamilton, HM08, Bermuda (each an "Administrative Trustee" and
collectively, the "Administrative Trustees") (the Property Trustee, the Delaware
Trustee and the Administrative Trustees are referred to collectively as the
"Trustees") and (v) the several Holders, as hereinafter defined.

                                   WITNESSETH

          WHEREAS, ACE Limited, as original sponsor of the Trust (the "Original
Depositor") and certain of the Trustees (the "Original Trustees") have
heretofore duly declared and established a business trust pursuant to the
Delaware Business Trust Act by the entering into of that certain Trust
Agreement, dated as of May 19, 1999 (the "Initial Trust Agreement"), and by the
execution by the Original Trustees and filing with the Secretary of State of the
State of Delaware of the Certificate of Trust, filed on May 19, 1999 (the
"Certificate of Trust"), attached as Exhibit A-1;

          WHEREAS, the Original Depositor has assigned to the Depositor, and the
Depositor has assumed, all of the Original Depositor's right, title and interest
in and to, and its obligations as Trust sponsor under, the Initial Trust
Agreement, pursuant to the Assignment and Assumption Agreement and First
Amendment to the Trust Agreement of ACE Capital Trust I, dated as of August 5,
1999 (the "Amendment"), among the Original Depositor, the Depositor and the
Original Trustees (the Initial Trust Agreement as amended by the Amendment being
hereinafter referred to as the "Original Trust Agreement"), attached as Exhibit
A-2; and

          WHEREAS, the Depositor (as successor Trust sponsor) and the Trustees
desire to amend and restate the Original Trust Agreement in its entirety as set
forth herein to provide for, among other things, (i) the issuance of the Common
Securities by the Trust to the Depositor, (ii) the issuance and sale of the
Preferred Securities by the Trust pursuant to the Underwriting Agreement, (iii)
the acquisition by the Trust from the Debenture Issuer (as hereinafter defined)
of all of the right, title and interest in the Debentures and (iv) the
appointment of an additional Administrative Trustee;

          NOW THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, each party, for the benefit of the other parties
and for the benefit of the Securityholders, hereby amends and restates the
Original Trust Agreement in its entirety and

                                       8
<PAGE>

agrees as follows:

                                  ARTICLE I.
                                DEFINED TERMS

Section 1.1  Definitions.

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

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

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

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

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

     "Act" has the meaning specified in Section 6.8.

     "Additional Amounts" means, with respect to Trust Securities of a given
Liquidation Amount, for a given period, the amount of any Additional Interest
and any Additional Amounts (as defined in the Indenture) paid by the Debenture
Issuer or the Debenture Guarantor on a Like Amount of Debentures for such
period.

     "Additional Interest" has the meaning specified in Section 1.1 of the
Indenture.

     "Additional Sums" has the meaning specified in Section 10.9 of the
Indenture.

     "Administrative Trustee" means each of Robert A. Blee and Christopher Z.
Marshall, solely in such Person's capacity as Administrative Trustee of the
Trust and not in such Person's individual capacity, or such Administrative
Trustee's successor in interest in such capacity, or any successor trustee
appointed as herein provided.

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

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

                                       9
<PAGE>

     "Bankruptcy Event" means, with respect to any Person: (a) the entry of a
decree or order by a court having jurisdiction in the premises judging such
Person a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjudication or composition of or in
respect of such Person under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law, or appointing a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of such
Person or of any substantial part of its property or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order
unstayed and in effect for a period of 60 consecutive days; or (b) the
institution by such Person of proceedings to be adjudicated a bankrupt or
insolvent, or the consent by it to the institution of bankruptcy or insolvency
proceedings against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law, or the consent by
it to the filing of any such petition or to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator (or similar official) of such Person
or of any substantial part of its property, or the making by it of an assignment
for the benefit of creditors, or the admission by it in writing of its inability
to pay its debts generally as they become due and its willingness to be
adjudicated a bankrupt, or the taking of corporate action by such Person in
furtherance of any such action.

     "Bankruptcy Law" has the meaning specified in Section 10.9.

     "Board Resolution" means a copy of a resolution, certified by the Secretary
or an Assistant Secretary of the Depositor to have been duly adopted by the
Depositor's Board of Directors, or such committee of the Board of Directors or
officers of the Depositor to which authority to act on behalf of the Board of
Directors has been delegated, and to be in full force and effect on the date of
such certification, delivered to the appropriate Trustee or Trustees.

     "Book-Entry Preferred Securities Certificates" means a beneficial interest
in the Preferred Securities Certificates, ownership and transfers of which shall
be made through book entries by a Clearing Agency as described in Section 5.11.

     "Business Day" means a day other than (a) a Saturday or Sunday, (b) a day
on which banking institutions in The City of New York are authorized or required
by law or executive order to remain closed, or (c) a day on which the Property
Trustee's Corporate Trust Office or the Corporate Trust Office of the Debenture
Trustee is closed for business.

     "Certificate Depository Agreement" means the agreement among the Trust, the
Depositor and DTC, as the initial Clearing Agency, dated as of the Closing Date,
relating to the Trust Securities Certificates, substantially in the form
attached as Exhibit B, as the same may be amended and supplemented from time to
time.

     "Certificate of Trust" has the meaning specified in the recitals to this
Trust Agreement.

     "Clearing Agency" means an organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.  DTC
will be the initial Clearing Agency.

                                       10
<PAGE>

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

     "Closing Time" has the meaning specified in the Underwriting Agreement,
which date is also the date of execution and delivery of this Trust Agreement.

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

     "Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, as amended,
or, if at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

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

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

     "Corporate Trust Office" means the principal office of the Property
Trustee located in Chicago, Illinois.

     "Date of Delivery" has the meaning specified in the Underwriting Agreement.

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

     "Debenture Guarantor" means ACE Limited, a Cayman Islands company, in its
capacity as guarantor under the Indenture, and its successors.

     "Debenture Issuer" means ACE INA Holdings Inc., a Delaware corporation, in
its capacity as the issuer of the Debentures under the Indenture, and its
successors.

     "Debenture Redemption Date" means, with respect to any Debentures to be
redeemed under the Indenture, the date fixed for redemption under the Indenture.

     "Debenture Trustee" means the Bank, in its capacity as trustee under the
Indenture, or any successor trustee appointed as therein provided.

     "Debentures" means the aggregate principal amount of the Debenture Issuer's
8.875% Junior Subordinated Deferrable Interest Debentures due 2029, issued
pursuant to the Indenture.

     "Definitive Preferred Securities Certificates" means either or both (as the
context requires) of (a) Preferred Securities Certificates issued as Book-Entry
Preferred Securities

                                       11
<PAGE>

Certificates as provided in Section 5.11(a) and (b) Preferred Securities
Certificates issued in certificated, fully registered form as provided in
Section 5.13.

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

     "Delaware Trustee" means the corporation identified as the "Delaware
Trustee" in the first paragraph of this Trust Agreement solely in its capacity
as Delaware Trustee of the Trust and not in its individual capacity, or its
successor in interest in such capacity, or any successor trustee appointed as
herein provided.

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

     "Direct Action" has the meaning specified in Section 5.14(c).

     "Distribution Date" has the meaning specified in Section 4.1(a).

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

     "DTC" means The Depository Trust Company.

     "Early Termination Event" has the meaning specified in Section 9.2.

     "Event of Default" means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body): (a) the occurrence of a Debenture Event
of Default; or (b) default by the Property Trustee in the payment of any
Distribution when it becomes due and payable, and continuation of such default
for a period of 30 days; or (c) default by the Property Trustee in the payment
of any Redemption Price of any Trust Security when it becomes due and payable;
or (d) default in the performance, or breach, in any material respect, of any
covenant or warranty of the Trustees in this Trust Agreement (other than a
covenant or warranty a default in the performance or breach of which is dealt
with in clause (b) or (c) above) and continuation of such default or breach for
a period of 60 days after there has been given, by registered or certified mail,
to the defaulting Trustee or Trustees by the Holders of at least 25% in
aggregate liquidation preference of the Outstanding Preferred Securities a
written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a "Notice of Default" hereunder; or (e) the
occurrence of a Bankruptcy Event with respect to the Property Trustee and the
failure by the Depositor to appoint a successor Property Trustee within 60 days
thereof.

     "Expense Agreement" means the Agreement as to Expenses and Liabilities
between the Depositor and the Trust, substantially in the form attached as
Exhibit D, as amended from time to time.

                                       12
<PAGE>

     "Expiration Date" has the meaning specified in Section 9.1.

     "Extension Period" has the meaning specified in Section 4.1(a).

     "Guarantee" means the Preferred Securities Guarantee Agreement executed and
delivered by the Preferred Securities Guarantor and the Bank, as Guarantee
Trustee, contemporaneously with the execution and delivery of this Trust
Agreement, for the benefit of the Holders of the Preferred Securities, as
amended from time to time.

     "Indenture" means the Subordinated Indenture, dated as of December 1, 1999,
among the Debenture Issuer, the Debenture Guarantor and the Debenture Trustee,
as trustee, as amended or supplemented from time to time.

     "Initial Trust Agreement" has the meaning specified in the recitals to this
Trust Agreement.

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

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

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

     "Liquidation Amount" means the stated amount of $25 per Trust Security.

     "Liquidation Date" means the date on which Debentures are to be distributed
to Holders of Trust Securities in connection with a dissolution and liquidation
of the Trust pursuant to Section 9.4(a).

     "Liquidation Distribution" has the meaning specified in Section 9.4(e).

     "Officers' Certificate" means a certificate signed by the Chairman of the
Board of Directors, a Vice Chairman, the President, any Vice President, the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of
the Depositor, that complies with the requirements of Section 314(e) of the
Trust Indenture Act and is delivered to the appropriate Trustee or Trustees.

     "Opinion of Counsel" means a written opinion of counsel, who may be counsel
for the Trust, the Property Trustee or the Depositor, as the case may be, or
other counsel who shall be reasonably acceptable to the Property Trustee, that,
if required by the Trust Indenture Act,

                                       13
<PAGE>

complies with the requirements of Section 314(e) of the Trust Indenture Act.

     "Original Depositor" has the meaning specified in the recitals to this
Trust Agreement.

     "Original Trust Agreement" has the meaning specified in the recitals to
this Trust Agreement.

     "Original Trustees" has the meaning specified in the recitals to this Trust
Agreement.

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

     (a) Preferred Securities theretofore cancelled by the Property Trustee or
         delivered to the Property Trustee for cancellation;

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

     (c) Preferred Securities which have been paid or in exchange for or in lieu
         of which other Preferred Securities have been executed and delivered
         pursuant to Sections 5.4, 5.5, 5.11 and 5.13, unless there shall have
         been presented to the Property Trustee proof satisfactory to it that
         such Preferred Security is held by a bona fide purchaser in whose hand
         such Preferred Security is a valid obligation of the Trust;

provided, however, that in determining whether the Holders of the requisite
Liquidation Amount of the Outstanding Preferred Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder
or are present at a meeting of Securityholders for quorum purposes, Preferred
Securities owned by the Depositor, any Trustee or any Affiliate of the Depositor
or any Trustee, shall be disregarded and deemed not to be Outstanding, except
that (a) in determining whether any Trustee shall be protected in relying upon
any such request, demand, authorization, direction, notice, consent or waiver,
only Preferred Securities that such Trustee knows to be so owned shall be so
disregarded and (b) the foregoing shall not apply at any time when all of the
outstanding Preferred Securities are owned by the Depositor, one or more of the
Trustees and/or any such Affiliate.  Preferred Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Administrative Trustees the pledgee's
right so to act with respect to such Preferred Securities and that the pledgee
is not the Depositor or any Affiliate of the Depositor.

     "Owner" means each Person who is the beneficial owner of a Book-Entry
Preferred Securities Certificate as reflected in the records of the Clearing
Agency or, if a Clearing Agency Participant is not the Owner, then as reflected
in the records of a Person maintaining an account with such Clearing Agency
(directly or indirectly, in accordance with the rules of such Clearing

                                       14
<PAGE>

Agency).

     "Paying Agent" means any paying agent or co-paying agent appointed pursuant
to Section 5.9 and shall initially be the Bank.

     "Payment Account" means a segregated non-interest-bearing corporate trust
account maintained by the Property Trustee with the Paying Agent in its trust
department for the benefit of the Securityholders in which all amounts paid in
respect of the Debentures will be held and from which the Property Trustee shall
make payments to the Securityholders in accordance with Sections 4.1 and 4.2.

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

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

     "Preferred Securities Certificate" means a certificate evidencing ownership
of Preferred Securities, substantially in the form attached as Exhibit E.

     "Preferred Securities Guarantor" means ACE Limited, a Cayman Islands
company, in its capacity as guarantor under the Guarantee, and its successors.

     "Property Trustee" means the commercial bank or trust company identified as
the "Property Trustee" in the preamble to this Trust Agreement solely in its
capacity as Property Trustee of the Trust and not in its individual capacity, or
its successor in interest in such capacity, or any successor property trustee
appointed as herein provided.

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

     "Redemption Price" means, with respect to any Trust Security, the
Liquidation Amount of such Trust Security plus accumulated and unpaid
Distributions to the Redemption Date, plus the related amount of the premium, if
any, and any Additional Amounts paid by the Debenture Issuer or the Debenture
Guarantor upon the concurrent redemption of a Like Amount of Debentures,
allocated on a pro rata basis (based on Liquidation Amounts) among the Trust
Securities.

     "Relevant Trustee" shall have the meaning specified in Section 8.10.

     "Securities Register" and "Securities Registrar" have the respective
meanings specified in

                                       15
<PAGE>

Section 5.4.

     "Securityholder" or "Holder" means a Person in whose name a Trust Security
or Securities is registered in the Securities Register; any such Person being a
beneficial owner within the meaning of the Delaware Business Trust Act;
provided, however, that in determining whether the Holders of the requisite
amount of Preferred Securities have voted on any matter provided for in this
Trust Agreement, then for purposes of any such determination, so long as
Definitive Preferred Securities Certificates have not been issued, the term
Securityholders or Holders as used herein shall refer to the Owners.

     "Successor Securities" has the meaning specified in Section 9.5.

     "Time of Delivery" means, collectively, the Closing Time and each Date of
Delivery.

     "Trust" means the Delaware business trust created by the Original Trust
Agreement and the Certificate of Trust and continued hereby and identified on
the cover page to this Trust Agreement.

     "Trust Agreement" means this Amended and Restated Trust Agreement, as the
same may be modified, amended or supplemented in accordance with the applicable
provisions hereof, including all exhibits hereto, including, for all purposes of
this Trust Agreement and any such modification, amendment or supplement, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this Trust Agreement and any such modification, amendment or supplement,
respectively.

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

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

     "Trust Security" means any one of the Common Securities or the Preferred
Securities.

     "Trust Securities Certificate" means any one of the Common Securities
Certificates or the Preferred Securities Certificates.

     "Trustees" means, collectively, the Property Trustee, the Delaware Trustee
and the Administrative Trustees.

     "Underwriting Agreement" means the Underwriting Agreement, dated as of
December 15, 1999, among the Trust, the Depositor, ACE Limited and the
Underwriters named therein.

                                       16
<PAGE>

                                  ARTICLE II.
                          ESTABLISHMENT OF THE TRUST

Section 2.1  Name.

     The Trust continued hereby shall be known as "ACE Capital Trust I," as such
name may be modified from time to time by the Administrative Trustees following
written notice to the Holders of Trust Securities and the other Trustees, in
which name the Trustees may conduct the business of the Trust, make and execute
contracts and other instruments on behalf of the Trust and sue and be sued.

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

     The address of the Delaware Trustee in the State of Delaware is Three
Christina Centre, 201 North Walnut Street, Wilmington, Delaware  19801,  or such
other address in the State of Delaware as the Delaware Trustee may designate by
written notice to the Depositor.  The principal executive office of the Trust is
c/o ACE INA Holdings Inc., Two Liberty Place, 1601 Chestnut Street,
Philadelphia, Pennsylvania 19101.

Section 2.3  Initial Contribution of Trust Property; Organizational Expenses.

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

Section 2.4  Issuance of the Preferred Securities.

     The Depositor, on behalf of the Trust and as successor Trust sponsor under
the Initial Trust Agreement, has executed and delivered the Underwriting
Agreement.  At the Closing Time, an Administrative Trustee, on behalf of the
Trust, shall execute in accordance with Section 5.2 and deliver to the
Underwriters named in the Underwriting Agreement Preferred Securities
Certificates, registered in the name of the nominee of the initial Clearing
Agency, in an aggregate amount of 4,000,000 Preferred Securities having an
aggregate Liquidation Amount of $100,000,000, against receipt of such aggregate
purchase price of such Preferred Securities of $100,000,000, which amount such
Administrative Trustee shall promptly deliver to the Property Trustee.  On each
Date of Delivery, an Administrative Trustee, on behalf of the Trust, shall
execute in accordance with Section 5.2 and deliver to the Underwriters named in
the Underwriting Agreement Preferred Securities Certificates, registered in the
name of the nominee of the initial Clearing Agency, in an aggregate amount of up
to 600,000 Preferred Securities (less such number of Preferred Securities
evidenced by Preferred Securities Certificates executed and delivered on any
prior Dates of Delivery) having an aggregate Liquidation Amount of up to
$15,000,000 (less the aggregate Liquidation Amount of any Preferred Securities
evidenced by Preferred Securities Certificates executed and delivered on any
prior Dates of Delivery), against receipt of such aggregate purchase price of
such Preferred Securities of $15,000,000 (less the

                                       17
<PAGE>

aggregate Liquidation Amount of any Preferred Securities evidenced by Preferred
Securities Certificates executed and delivered on any prior Dates of Delivery),
which amount such Administrative Trustee shall promptly deliver to the Property
Trustee.

Section 2.5  Issuance of the Common Securities; Subscription and Purchase of
Debentures.

     (a) At the Closing Time, an Administrative Trustee, on behalf of the Trust,
shall execute in accordance with Section 5.2 and deliver to the Depositor Common
Securities Certificates, registered in the name of the Depositor, in an
aggregate amount of 123,712 Common Securities having an aggregate Liquidation
Amount of $3,092,800, against payment by the Depositor of such amount, which
amount such Administrative Trustee shall promptly deliver to the Property
Trustee. On each Date of Delivery, an Administrative Trustee, on behalf of the
Trust, shall execute in accordance with Section 5.2 and deliver to the Depositor
Common Securities Certificates, registered in the name of the Depositor, in an
aggregate amount of up to 18,557 Common Securities (less such number of Common
Securities evidenced by Common Securities Certificates executed and delivered on
any prior Dates of Delivery) having an aggregate Liquidation Amount of up to
$463,925 (less the aggregate Liquidation Amount of any Common Securities
evidenced by Common Securities Certificates executed and delivered on any prior
Dates of Delivery), against payment by the Depositor of such amount, which
amount such Administrative Trustee shall promptly deliver to the Property
Trustee.

     (b) At the Closing Time and on each Date of Delivery, an Administrative
Trustee, on behalf of the Trust, shall subscribe to and purchase from the
Debenture Issuer Debentures, registered in the name of the Trust and having an
aggregate principal amount equal to the aggregate Liquidation Amount of the
Preferred Securities and Common Securities issued and sold on such date, and, in
satisfaction of the purchase price for such Debentures, the Property Trustee, on
behalf of the Trust, shall deliver to the Debenture Issuer the amount received
on such date from one of the Administrative Trustees pursuant to Section 2.4 and
Section 2.5.

Section 2.6  Declaration of Trust.

     The exclusive purposes and functions of the Trust are (a) to issue and sell
Trust Securities and use the proceeds from such sale to acquire the Debentures,
and (b) to engage in those activities necessary, convenient or incidental
thereto.  The Depositor hereby appoints the Trustees as trustees of the Trust,
to have all the rights, powers and duties to the extent set forth herein, and
the Trustees hereby accept such appointment.  The Property Trustee hereby
declares that it will hold the Trust Property upon and subject to the conditions
set forth herein for the benefit of the Securityholders.  The Administrative
Trustees shall have all rights, powers and duties set forth herein and in
accordance with applicable law with respect to accomplishing the purposes of the
Trust.  The Delaware Trustee shall not be entitled to exercise any powers, nor
shall the Delaware Trustee have any of the duties and responsibilities, of the
Trustees set forth herein except as required by the Delaware Business Trust Act.
The Delaware Trustee shall be one of the Trustees of the Trust for the sole and
limited purpose of fulfilling the requirements of Section 3807(a) of the
Delaware Business Trust Act.

Section 2.7  Authorization to enter into Certain Transactions.

                                       18
<PAGE>

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

          (i) As among the Trustees, each of the Administrative Trustees, acting
     singly or together, shall have the power and authority to act on behalf of
     the Trust with respect to the following matters:

               (A) the issuance and sale of the Trust Securities;

               (B) to cause the Trust to enter into, and to execute, deliver and
          perform on behalf of the Trust, the Expense Agreement and the
          Certificate Depository Agreement and such other agreements as may be
          necessary or desirable in connection with the purposes and function of
          the Trust;

               (C) to assist in the registration of the Preferred Securities
          under the Securities Act of 1933, as amended, and under state
          securities or blue sky laws, and the qualification of this Trust
          Agreement as a trust indenture under the Trust Indenture Act;

               (D) to assist in the listing of the Preferred Securities upon
          such securities exchange or exchanges as shall be determined by the
          Depositor and the registration of the Preferred Securities under the
          Securities Exchange Act of 1934, as amended, and the preparation and
          filing of all periodic and other reports and other documents pursuant
          to the foregoing; and to seek relief from the reporting requirements
          of the Securities Exchange Act of 1934, as amended;

               (E) the sending of notices (other than notices of default) and
          other information regarding the Trust Securities and the Debentures to
          the Securityholders in accordance with this Trust Agreement;

               (F) the appointment of a Paying Agent, authenticating agent and
          Securities Registrar in accordance with this Trust Agreement;

               (G) the establishment of a record date for any of the purposes
          contemplated by Section 6.7 hereof;

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

               (I) unless otherwise determined by the Depositor, the Property
          Trustee or the

                                       19
<PAGE>

          Administrative Trustees, or as otherwise required by the Delaware
          Business Trust Act or the Trust Indenture Act, to execute on behalf of
          the Trust (either acting alone or together with any or all of the
          Administrative Trustees) any documents that the Administrative
          Trustees have the power to execute pursuant to this Trust Agreement;
          and

               (J) the taking of any action incidental to the foregoing as the
          Trustees may from time to time determine is necessary or advisable to
          give effect to the terms of this Trust Agreement for the benefit of
          the Securityholders (without consideration of the effect of any such
          action on any particular Securityholder).

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

               (A) the establishment of the Payment 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 Payment Account;

               (D) the distribution of amounts owed to the Securityholders in
          respect of the Trust 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 Trust Securities and the Debentures to the
          Securityholders in accordance with this Trust Agreement;

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

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

               (I) after an Event of Default, the taking of any action
          incidental to the foregoing as the Property Trustee may from time to
          time determine is necessary or advisable to give effect to the terms
          of this Trust Agreement and to protect and conserve the Trust Property
          for the benefit of the Securityholders (without consideration of the
          effect of any such action on any particular Securityholder); and

               (J) engaging in such ministerial activities as shall be
          necessary, appropriate, convenient or incidental to effect the
          repayment of the Preferred Securities and the

                                       20
<PAGE>

          Common Securities to the extent the Debentures mature or are redeemed.

     Except as otherwise provided in this Section 2.7(a)(ii), the Property
Trustee shall have none of the duties, liabilities, powers or the authority of
the Administrative Trustees set forth in Section 2.7(a)(i).

     (b) So long as this Trust Agreement remains in effect, the Trust (or the
Trustees acting on behalf of the Trust) shall not undertake any business,
activities or transaction except as expressly provided herein or contemplated
hereby. In particular, the Trustees shall not cause the Trust to (i) acquire any
investments or engage in any activities not authorized by this Trust Agreement,
(ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise
dispose of any of the Trust Property or interests therein, including to
Securityholders, except as expressly provided herein, (iii) take any action that
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
Administrative Trustees shall defend all claims and demands of all Persons at
any time claiming any Lien on any of the Trust Property adverse to the interest
of the Trust or the Securityholders in their capacity as Securityholders.

     (c) In connection with the issue and sale of the Preferred Securities, the
Depositor 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 Depositor in furtherance of the following prior to the date of this
Trust Agreement are hereby ratified and confirmed in all respects):

          (i) the preparation and filing by the Trust with the Commission and
     the execution on behalf of the Trust of a registration statement on the
     appropriate form in relation to the Preferred Securities, including any
     amendments thereto;

          (ii) the determination of the States in which to take appropriate
     action to qualify or register for sale all or part of the Preferred
     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 advice 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 Depositor deems
     necessary or advisable in order to comply with the applicable laws of any
     such States;

          (iii) the preparation for filing by the Trust and execution on behalf
     of the Trust of an application to the New York Stock Exchange or any other
     national stock exchange or the Nasdaq National Market for listing upon
     notice of issuance of any Preferred Securities;

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

          (v) the negotiation of the terms of, and the execution and delivery
     of, the

                                       21
<PAGE>

     Underwriting Agreement providing for the sale of the Preferred Securities;
     and

          (vi) the taking of any other actions deemed by the Depositor to be
     necessary or desirable to carry out any of the foregoing activities.

     (d) Notwithstanding anything herein to the contrary, the Administrative
Trustees are authorized and directed to conduct the affairs of the Trust and to
operate the Trust so that the Trust will not be deemed to be an "investment
company" required to be registered under the Investment Company Act or
classified as an association taxable as a corporation for United States Federal
income tax purposes and so that the Debentures will be treated as indebtedness
of the Debenture Issuer for United States Federal income tax purposes. In this
connection, the Depositor and the Administrative Trustees are authorized to take
any action, not inconsistent with applicable law, the Certificate of Trust or
this Trust Agreement, that each of the Depositor and the Administrative Trustees
determines in their discretion to be necessary or desirable for such purposes,
as long as such action does not adversely affect in any material respect the
interests of the Holders of the Preferred Securities.

Section 2.8  Assets of Trust.

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

Section 2.9  Title to Trust Property.

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

                                 ARTICLE III.
                                PAYMENT ACCOUNT

Section 3.1  Payment Account.

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

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

                                       22
<PAGE>

                                  ARTICLE IV.
                     CERTAIN TERMS OF THE TRUST SECURITIES

Section 4.1  Distributions.

     (a) Distributions on the Trust Securities shall be cumulative, and will
accumulate whether or not there are funds of the Trust available for the payment
of Distributions. Distributions shall accrue from December 20, 1999, and shall
be payable quarterly in arrears on March 31, June 30, September 30 and December
31 of each year, commencing on March 31, 2000, except as otherwise described
below. The Debenture Issuer has the right under the Indenture, at any time and
from time to time, to defer payments of interest for such period or periods as
may be specified with respect to the Debentures (each, an "Extension Period"),
on the terms and conditions specified in the Indenture. As a consequence of such
deferral, Distributions will also be deferred. Despite such deferral, quarterly
Distributions will continue to accumulate at the rate set forth in paragraph (b)
of this Section 4.1, together with additional distributions thereon (to the
extent permitted by applicable law) at the rate at which Additional Interest is
then accruing on the Debentures, compounded quarterly during any such Extension
Period. If any date on which a Distribution is otherwise payable on the Trust
Securities is not a Business Day, then the payment of such Distribution shall be
made on the next succeeding day that is a Business Day (and without any
additional distributions or other payment in respect of any such delay), except
that, if such Business Day is in the next succeeding calendar year, payment of
such Distribution shall be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the date such payment was
originally payable (each date on which distributions are payable in accordance
with this Section 4.1(a), a "Distribution Date").

     (b) The Trust Securities represent undivided beneficial interests in the
Trust Property, and the Distributions on the Trust Securities shall be payable
at a rate of 8.875% per annum of the Liquidation Amount of the Trust Securities.
The term "Distributions" as used herein includes such cash distributions and any
accumulated or additional distributions that are payable hereunder unless
otherwise stated. The amount of Distributions payable for any full or partial
period shall be computed on the basis of a 360-day year of twelve 30-day months.
The amount of Distributions payable for any period shall include Additional
Amounts, if any.

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

     (d) Distributions on the Trust Securities with respect to a Distribution
Date shall be payable to the Holders thereof as they appear on the Securities
Register at the close of business on the relevant record date, which, as long as
the Preferred Securities remain in book-entry only form, shall be the date one
Business Day immediately preceding such Distribution Date. The relevant record
dates for the Common Securities shall be the same record dates as for the
Preferred Securities. If the Preferred Securities shall not continue to remain
in book-entry only form or are not in book-entry only form at issuance, the
relevant record dates for the Preferred Securities

                                       23
<PAGE>

shall be the date 15 days prior to the relevant Distribution Date, which
Distribution Dates shall correspond to the interest payment dates on the
Debentures. Distributions payable on any Trust Securities that are not
punctually paid on any Distribution Date, as a result of the Debenture Issuer
(or the Debenture Guarantor on its behalf) having failed to make an interest
payment under the Debentures, will cease to be payable to the Person in whose
name such Trust Securities are registered on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such
Trust Securities are registered on the special record date or other specified
date for determining Debentureholders entitled to such defaulted interest
established in accordance with the Indenture.

     (e) 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 among the Holders of the Trust Securities. A reference
herein to any payment, distribution or treatment as being "pro rata" shall mean
pro rata to each Holder of Trust Securities according to the aggregate
Liquidation Amount of the Trust Securities held by the relevant Holder in
relation to the aggregate Liquidation Amount of all Trust Securities outstanding
unless, in relation to a payment, a Debenture 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 Preferred Securities pro rata according to the
aggregate Liquidation Amount of Preferred Securities held by the relevant Holder
relative to the aggregate Liquidation Amount of all Preferred Securities
outstanding, and only after satisfaction of all amounts owed to the Holders of
the Preferred Securities, to each Holder of Common Securities pro rata according
to the aggregate Liquidation Amount of Common Securities held by the relevant
Holder relative to the aggregate Liquidation Amount of all Common Securities
outstanding.

Section 4.2  Redemption.

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

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

          (i) the Redemption Date;

          (ii) the Redemption Price;

          (iii) the CUSIP number;

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

                                       24
<PAGE>

          (v) that on the Redemption Date the Redemption Price will become due
     and payable upon each such Trust Security to be redeemed and that
     distributions thereon will cease to accrue on and after said date.

     (c) The Trust Securities redeemed on each Redemption Date shall be redeemed
at the Redemption Price with the proceeds from the contemporaneous redemption of
Debentures. Redemptions of the Trust Securities shall be made and the Redemption
Price shall be payable on each Redemption Date only to the extent that the Trust
has funds then on hand and available in the Payment Account for the payment of
such Redemption Price.

     (d) If the Property Trustee gives a notice of redemption (which notice
shall be irrevocable) in respect of any Preferred Securities, then, by 12:00
noon, New York City time, on the Redemption Date, subject to Section 4.2(c), the
Property Trustee will, so long as the Preferred Securities are in book-entry-
only form, irrevocably deposit with the Clearing Agency for the Preferred
Securities funds sufficient to pay the applicable Redemption Price and will give
such Clearing Agency irrevocable instructions and authority to pay the
Redemption Price to the relevant Persons' accounts at such Clearing Agency on
the applicable Redemption Date. If the Preferred Securities are no longer in
book-entry-only form, and in the case of the Common Securities, the Property
Trustee, subject to Section 4.2(c), will irrevocably deposit with the Paying
Agent funds sufficient to pay the applicable Redemption Price and will give the
Paying Agent irrevocable instructions and authority to pay the Redemption Price
to the Holders thereof upon surrender of their Trust Securities Certificates.
Notwithstanding the foregoing, Distributions payable on or prior to the
Redemption Date for any Trust Securities called for redemption shall be payable
to the Holders of such Trust Securities as they appear on the Securities
Register for the Trust Securities on the relevant record dates for the related
Distribution Dates. If notice of redemption shall have been given and funds
deposited as required, then immediately prior to the close of business on the
date of such deposit, all rights of Securityholders holding Trust Securities so
called for redemption will cease, except the right of such Securityholders to
receive the Redemption Price and any Distributions payable on or prior to the
Redemption Date, but without interest, and such Securities will cease to be
outstanding. In the event that any date on which any Redemption Price is payable
is not a Business Day, then payment of the Redemption Price payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), except that, if such
Business Day falls in the next calendar year, such payment will be made on the
immediately preceding Business Day, in each case, with the same force and effect
as if made on such date. In the event that payment of the Redemption Price in
respect of any Trust Securities called for redemption is improperly withheld or
refused and not paid either by the Trust or by the Preferred Securities
Guarantor pursuant to the Guarantee, Distributions on such Trust Securities will
continue to accrue, at the then applicable rate, from the Redemption Date
originally established by the Trust for such Trust Securities to the date such
Redemption Price is actually paid, in which case the actual payment date will be
the date fixed for redemption for purposes of calculating the Redemption Price.

     (e) Payment of the Redemption Price on the Trust Securities shall be made
to the recordholders thereof as they appear on the Securities Register for the
Trust Securities on the

                                       25
<PAGE>

relevant record date, which shall be one Business Day prior to the relevant
Redemption Date; provided, however, that in the event that the Preferred
Securities do not remain in book-entry-only form, the relevant record date shall
be the date fifteen days prior to the relevant Redemption Date.

     (f) Subject to Section 4.3(a), if less than all the Outstanding Trust
Securities are to be redeemed on a Redemption Date, then the aggregate
Liquidation Amount of Trust Securities to be redeemed shall be allocated on a
pro rata basis (based on Liquidation Amounts) among the Common Securities and
the Preferred Securities. The particular Preferred Securities to be redeemed
shall be selected on a pro rata basis (based upon Liquidation Amounts) not more
than 60 days prior to the Redemption Date by the Property Trustee from the
Outstanding Preferred Securities not previously called for redemption, by such
method (including, without limitation, by lot) as the Property Trustee shall
deem fair and appropriate and which may provide for the selection for redemption
of portions (equal to $25 or an integral multiple of $25 in excess thereof) of
the Liquidation Amount of Preferred Securities of a denomination larger than
$25. The Property Trustee shall promptly notify the Security Registrar in
writing of the Preferred Securities selected for redemption and, in the case of
any Preferred Securities selected for partial redemption, the Liquidation Amount
thereof to be redeemed. For all purposes of this Trust Agreement, unless the
context otherwise requires, all provisions relating to the redemption of
Preferred Securities shall relate, in the case of any Preferred Securities
redeemed or to be redeemed only in part, to the portion of the Liquidation
Amount of Preferred Securities that has been or is to be redeemed.

     (g) Subject to applicable law, the Preferred Securities Guarantor and its
subsidiaries, including the Depositor, may at any time and from time to time
purchase Outstanding Preferred Securities by tender in the open market or by
private agreement.

Section 4.3  Subordination of Common Securities.

     (a) Payment of Distributions (including Additional Amounts, if applicable)
on, and the Redemption Price of, the Trust Securities, as applicable, shall be
made, subject to Section 4.2(f), pro rata among the Common Securities and the
Preferred Securities based on the Liquidation Amount of the Trust Securities;
provided, however, that if on any Distribution Date or Redemption Date any Event
of Default resulting from a Debenture Event of Default shall have occurred and
be continuing, no payment of any Distribution (including Additional Amounts, if
applicable) on, or Redemption Price of, any Common Security, and no other
payment on account of the redemption, liquidation or other acquisition of Common
Securities, shall be made unless payment in full in cash of all accumulated and
unpaid Distributions (including Additional Amounts, if applicable) on all
Outstanding Preferred Securities for all Distribution periods terminating on or
prior thereto, or in the case of payment of the Redemption Price the full amount
of such Redemption Price on all Outstanding Preferred Securities, shall have
been made or provided for, and all funds immediately available to the Property
Trustee shall first be applied to the payment in full in cash of all
Distributions (including Additional Amounts, if applicable) on, or the
Redemption Price of, Preferred Securities then due and payable.

                                       26
<PAGE>

     (b) In the case of the occurrence of any Event of Default resulting from
any Debenture Event of Default, the Holder of Common Securities will be deemed
to have waived any right to act with respect to any such Event of Default under
this Trust Agreement until the effect of all such Events of Default with respect
to the Preferred Securities have been cured, waived or otherwise eliminated.
Until any such Event of Default under this Trust Agreement with respect to the
Preferred Securities has been so cured, waived or otherwise eliminated, the
Property Trustee shall act solely on behalf of the Holders of the Preferred
Securities and not the Holder of the Common Securities, and only the Holders of
the Preferred Securities will have the right to direct the Property Trustee to
act on their behalf.

Section 4.4  Payment Procedures.

     Payments of Distributions (including Additional Amounts, if applicable) in
respect of the Preferred Securities shall be made by check mailed to the address
of the Person entitled thereto as such address shall appear on the Securities
Register or, if the Preferred Securities are held by a Clearing Agency, such
Distributions shall be made to the Clearing Agency in immediately available
funds, which shall credit the relevant Persons' accounts at such Clearing Agency
on the applicable distribution dates.  Payments in respect of the Common
Securities shall be made in such manner as shall be mutually agreed between the
Property Trustee and the Common Securityholder.

Section 4.5  Tax Returns and Reports.

     The Administrative Trustees shall prepare (or cause to be prepared), at the
Depositor's expense, and file all United States Federal, state and local tax and
information returns and reports required to be filed by or in respect of the
Trust.  In this regard, the Administrative Trustees shall

     (a) prepare and file (or cause to be prepared and filed) the appropriate
Internal Revenue Service Form required to be filed in respect of the Trust in
each taxable year of the Trust and

     (b) prepare and furnish (or cause to be prepared and furnished) to each
Securityholder the appropriate Internal Revenue Service form required by the
Code to be provided. The Administrative Trustees shall provide the Depositor and
the Property Trustee with a copy of all such returns and reports promptly after
such filing or furnishing. The Trustees shall comply with United States Federal
withholding and backup withholding tax laws and information reporting
requirements with respect to any payments to Securityholders under the Trust
Securities.

Section 4.6  Payment of Taxes, Duties, etc. of the Trust.

     Upon receipt under the Debentures of Additional Sums, the Property Trustee
shall promptly pay any taxes, duties or governmental charges of whatsoever
nature (other than withholding taxes) imposed on the Trust by the United States
or any other taxing authority.

Section 4.7  Payments under Indenture.

     Any amount payable hereunder to any Holder of Preferred Securities shall be
reduced by

                                       27
<PAGE>

the amount of any corresponding payment such Holder (and any Owner with respect
thereto) has directly received pursuant to Section 5.8 of the Indenture.

                                  ARTICLE V.
                         TRUST SECURITIES CERTIFICATES

Section 5.1  Initial Ownership.

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

Section 5.2  The Trust Securities Certificates.

     The Preferred Securities Certificates shall be issued in minimum
denominations of $25 Liquidation Amount and integral multiples of $25 in excess
thereof, and the Common Securities Certificates shall be issued in minimum
denominations of $25 Liquidation Amount and integral multiples of $25 in excess
thereof.  The Trust Securities Certificates shall be executed on behalf of the
Trust by manual signature of at least one Administrative Trustee.  Trust
Securities Certificates bearing the manual signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign on
behalf of the Trust, shall be validly issued and entitled to the benefits of
this Trust Agreement, notwithstanding that such individuals or any of them shall
have ceased to be so authorized prior to the delivery of such Trust Securities
Certificates or did not hold such offices at the date of delivery of such Trust
Securities Certificates.  A transferee of a Trust Securities Certificate shall
become a Securityholder, and shall be entitled to the rights and subject to the
obligations of a Securityholder hereunder, upon due registration of such Trust
Securities Certificate in such transferee's name pursuant to Sections 5.4, 5.11
and 5.13.

Section 5.3  Execution and Delivery of Trust Securities Certificates.

     At each Time of Delivery, the Administrative Trustees shall cause Trust
Securities Certificates, in an aggregate Liquidation Amount as provided in
Sections 2.4 and 2.5, to be executed on behalf of the Trust and delivered to or
upon the written order of the Depositor, signed by its Chairman of the Board, a
Vice Chairman, its President, a Vice President or its Treasurer and attested by
its Secretary or one of its Assistant Secretaries, without further corporate
action by the Depositor, in authorized denominations.

Section 5.4  Registration of Transfer and Exchange of Preferred Securities
Certificates.

     The Depositor shall keep or cause to be kept, at the office or agency
maintained pursuant to Section 5.8, a register or registers for the purpose of
registering Trust Securities Certificates and transfers and exchanges of
Preferred Securities Certificates (the "Securities Register").  The registrar
designated by the Depositor (the "Securities Registrar"), subject to such
reasonable regulations as it may prescribe, shall provide for the registration
of Preferred Securities Certificates and Common Securities Certificates (subject
to Section 5.10 in the case of the

                                       28
<PAGE>

Common Securities Certificates) and registration of transfers and exchanges of
Preferred Securities Certificates as herein provided. The Bank shall be the
initial Securities Registrar. Upon surrender for registration of transfer of any
Preferred Securities Certificate at the office or agency maintained pursuant to
Section 5.8, the Administrative Trustees or any one of them shall execute and
deliver, in the name of the designated transferee or transferees, one or more
new Preferred Securities Certificates in authorized denominations of a like
aggregate Liquidation Amount dated the date of execution by such Administrative
Trustee or Trustees. The Securities Registrar shall not be required to register
the transfer of any Preferred Securities after such Preferred Securities have
been called for redemption. At the option of a Holder, Preferred Securities
Certificates may be exchanged for other Preferred Securities Certificates in
authorized denominations of the same class and of a like aggregate Liquidation
Amount upon surrender of the Preferred Securities Certificates to be exchanged
at the office or agency maintained pursuant to Section 5.8. Every Preferred
Securities Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to an Administrative Trustee and the Securities Registrar duly
executed by the Holder or his attorney duly authorized in writing. Each
Preferred Securities Certificate surrendered for registration of transfer or
exchange shall be cancelled and subsequently disposed of by an Administrative
Trustee in accordance with customary practice. Registration of transfers or
exchanges of Preferred Securities Certificates shall be effected without service
charge by or on behalf of the Trust, but the Securities Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any such transfer or exchange.

Section 5.5  Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates.

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

Section 5.6  Persons Deemed Securityholders.

     Prior to due presentation of a Trust Securities Certificate for
registration of transfer, the Administrative Trustees or the Securities
Registrar shall treat the Person in whose name any

                                       29
<PAGE>

Trust Securities Certificate shall be registered in the Securities Register as
the owner of such Trust Securities Certificate for the purpose of receiving
distributions and for all other purposes whatsoever, and neither the Trustees
nor the Securities Registrar shall be bound by any notice to the contrary.

Section 5.7  Access to List of Securityholders' Names and Addresses.

     The Administrative Trustees shall furnish or cause to be furnished (x) to
the Depositor, within 15 days after receipt by any Administrative Trustee of a
request therefor from the Depositor in writing and (y) to the Property Trustee,
promptly after receipt by any Administrative Trustee of a request therefor from
the Property Trustee in writing in order to enable the Property Trustee to
discharge its obligations under this Trust Agreement, a list, in such form as
the Depositor or the Property Trustee may reasonably require, of the names and
addresses of the Securityholders as of a recent date.  If Holders of Trust
Securities Certificates evidencing ownership at such time and for the previous
six months of not less than 25% of the Outstanding aggregate Liquidation Amount
apply in writing to any Administrative Trustee, and such application states that
the applicants desire to communicate with other Securityholders with respect to
their rights under this Trust Agreement or under the Trust Securities
Certificates and such application is accompanied by a copy of the communication
that such applicants propose to transmit, then the Administrative Trustees
shall, within five Business Days after the receipt of such application, afford
such applicants access during normal business hours to the current list of
Securityholders.  Each Holder, by receiving and holding a Trust Securities
Certificate, and each Owner shall be deemed to have agreed not to hold the
Depositor, the Property Trustee or the Administrative Trustees accountable by
reason of the disclosure of its name and address, regardless of the source from
which such information was derived.

Section 5.8  Maintenance of Office or Agency.

     The Administrative Trustees shall maintain in Chicago, Illinois, an office
or offices or agency or agencies where Preferred Securities Certificates may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Trustees in respect of the Trust Securities and the Trust
Agreement may be served.  The Administrative Trustees initially designate Bank
One Trust Company, National Association, Bank One Plaza, Suite IL1-0126,
Chicago, Illinois 60670-0126; Attention: Corporate Trust Services Division, as
the principal corporate trust office for such purposes.  The Administrative
Trustees shall give prompt written notice to the Depositor and to the
Securityholders of any change in the location of the Securities Register or any
such office or agency.

Section 5.9  Appointment of Paying Agent.

     The Paying Agent shall make distributions to Securityholders from the
Payment Account and shall report the amounts of such distributions to the
Property Trustee and the Administrative Trustees.  Any Paying Agent shall have
the revocable power to withdraw funds from the Payment Account for the purpose
of making the distributions referred to above.  The Administrative Trustees may
revoke such power and remove the Paying Agent if such Trustees determine in
their sole discretion that the Paying Agent shall have failed to perform its

                                       30
<PAGE>

obligations under this Trust Agreement in any material respect.  The Paying
Agent shall initially be the Bank, and any co-paying agent chosen by the Bank,
and acceptable to the Administrative Trustees and the Depositor.  Any Person
acting as Paying Agent shall be permitted to resign as Paying Agent upon 30
days' written notice to the Administrative Trustees, the Property Trustee and
the Depositor.  In the event that the Bank shall no longer be the Paying Agent
or a successor Paying Agent shall resign or its authority to act be revoked, the
Administrative Trustees shall appoint a successor (which shall be a bank or
trust company that is acceptable to the Administrative Trustees and the
Depositor) to act as Paying Agent.  The Administrative Trustees shall cause such
successor Paying Agent or any additional Paying Agent appointed by the
Administrative Trustees to execute and deliver to the Trustees an instrument in
which such successor Paying Agent or additional Paying Agent shall agree with
the Trustees that as Paying Agent, such successor Paying Agent or additional
Paying Agent will hold all sums, if any, held by it for payment to the
Securityholders in trust for the benefit of the Securityholders entitled thereto
until such sums shall be paid to such Securityholders.  The Paying Agent shall
return all unclaimed funds to the Property Trustee and upon removal of a Paying
Agent such Paying Agent shall also return all funds in its possession to the
Property Trustee.  The provisions of Sections 8.1, 8.3 and 8.6 herein shall
apply to the Paying Agent appointed hereunder and, to the extent applicable, to
any other paying agent appointed hereunder.  Any reference in this Agreement to
the Paying Agent shall include any co-paying agent unless the context requires
otherwise.

Section 5.10  Ownership of Common Securities by Depositor.

     At each Time of Delivery, the Depositor shall acquire and retain beneficial
and record ownership of all of the Common Securities then issued by the Trust,
in an amount equal to at least 3% of the total capital of the Trust, at the same
time as the Preferred Securities are issued and sold.  The aggregate Liquidation
Amount of the Common Securities at any time shall not be less than 3% of the
total capital of the Trust.  To the fullest extent permitted by law, other than
a transfer in connection with a consolidation or merger of the Depositor into
another corporation, or any conveyance, transfer or lease by the Depositor of
its properties and assets substantially as an entirety to any Person, pursuant
to Section 8.1 of the Indenture, any attempted transfer of the Common Securities
shall be void.  The Administrative Trustees shall cause each Common Securities
Certificate issued to the Depositor to contain a legend stating "THIS
CERTIFICATE IS NOT TRANSFERABLE EXCEPT AS PROVIDED IN THE TRUST AGREEMENT (AS
DEFINED BELOW)".

Section 5.11  Book-Entry Preferred Securities Certificates; Common Securities
Certificate.

     (a) The Preferred Securities Certificates, upon original issuance, will be
issued in the form of a typewritten Preferred Securities Certificate or
Certificates representing Book-Entry Preferred Securities Certificates, to be
delivered to DTC, the initial Clearing Agency, by, or on behalf of, the Trust.
Such Preferred Securities Certificate or Certificates shall initially be
registered on the Securities Register in the name of Cede & Co., the nominee of
the initial Clearing Agency, and no beneficial owner will receive a Definitive
Preferred Securities Certificate representing such beneficial owner's interest
in such Preferred Securities, except as provided in Section 5.13. Except for
Definitive Preferred Securities Certificates as specified herein, unless and
until

                                       31
<PAGE>

Definitive Preferred Securities Certificates have been issued to beneficial
owners pursuant to Section 5.13:

          (i) the provisions of this Section 5.11(a) shall be in full force and
     effect;

          (ii) the Securities Registrar and the Trustees shall be entitled to
     deal with the Clearing Agency for all purposes of this Trust Agreement
     relating to the Book-Entry Preferred Securities Certificates (including the
     payment of the Liquidation Amount of and Distributions on the Book-Entry
     Preferred Securities and the giving of instructions or directions to Owners
     of Book-Entry Preferred Securities) as the sole Holder of Book-Entry
     Preferred Securities and shall have no obligations to the Owners thereof;

          (iii) to the extent that the provisions of this Section 5.11 conflict
     with any other provisions of this Trust Agreement, the provisions of this
     Section 5.11 shall control; and

          (iv) the rights of the Owners of the Book-Entry Preferred Securities
     Certificates shall be exercised only through the Clearing Agency and shall
     be limited to those established by law and agreements between such Owners
     and the Clearing Agency and/or the Clearing Agency Participants; provided,
     that solely for the purposes of determining whether the Holders of the
     requisite amount of Preferred Securities have voted on any matter provided
     for in this Trust Agreement, so long as Definitive Preferred Security
     Certificates have not been issued, the Trustees may conclusively rely on,
     and shall be protected in relying on, any written instrument (including a
     proxy) delivered to the Trustees by the Clearing Agency setting forth the
     Owners' votes or assigning the right to vote on any matter to any other
     Persons either in whole or in part. Pursuant to the Certificate Depository
     Agreement, unless and until Definitive Preferred Securities Certificates
     are issued pursuant to Section 5.13, the initial Clearing Agency will make
     book-entry transfers among the Clearing Agency Participants and receive and
     transmit payments on the Preferred Securities to such Clearing Agency
     Participants.

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

Section 5.12  Notices to Clearing Agency.

     (a) To the extent that a notice or other communication to the Owners is
required under this Trust Agreement, unless and until Definitive Preferred
Securities Certificates shall have been issued to Owners pursuant to Section
5.13, the Trustees shall give all such notices and communications specified
herein to be given to Owners to the Clearing Agency, and shall have no
obligations to the Owners.

Section 5.13  Definitive Preferred Securities Certificates.

     If (a) the Depositor advises the Trustees in writing that the Clearing
Agency is no longer willing or able to act as clearing agency with respect to
the Preferred Securities Certificates, and the Depositor fails to appoint a
qualified successor within 90 days, (b) the Depositor at its option

                                       32
<PAGE>

advises the Trustees in writing that it elects to terminate the book-entry
system through the Clearing Agency or (c) after the occurrence of a Debenture
Event of Default, Owners of Preferred Securities Certificates representing
beneficial interests aggregating at least a majority of the Liquidation Amount
of the Outstanding Preferred Securities advise the Property Trustee in writing
that the continuation of a book-entry system through the Clearing Agency is no
longer in the best interest of the Owners of Preferred Securities Certificates,
then the Property Trustee shall notify the Clearing Agency and the Clearing
Agency shall notify all Owners of Preferred Securities Certificates and the
other Trustees of the occurrence of any such event and of the availability of
the Definitive Preferred Securities Certificates to Owners of such class or
classes, as applicable, requesting the same. Upon surrender to the Property
Trustee of the typewritten Preferred Securities Certificate or Certificates
representing the Book Entry Preferred Securities Certificates by the Clearing
Agency, accompanied by registration instructions, the Administrative Trustees,
or any one of them, shall execute the Definitive Preferred Securities
Certificates in accordance with the instructions of the Clearing Agency. Neither
the Securities Registrar nor the Trustees shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Preferred Securities Certificates, the Trustees shall recognize the Holders of
the Definitive Preferred Securities Certificates as Securityholders. The
Definitive Preferred Securities Certificates shall be printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Administrative Trustees, as evidenced by the execution thereof by the
Administrative Trustees or any one of them.

Section 5.14  Rights of Securityholders.

     (a) The legal title to the Trust Property is vested exclusively in the
Property Trustee (in its capacity as such) in accordance with Section 2.9, and
the Securityholders shall not have any right or title therein other than the
undivided beneficial interest in the assets of the Trust conferred by their
Trust Securities and they shall have no right to call for any partition or
division of property, profits or rights of the Trust except as described below.
The Trust Securities shall be personal property giving only the rights
specifically set forth therein and in this Trust Agreement. The Trust Securities
shall have no preemptive or similar rights and when issued and delivered to
Securityholders against payment of the purchase price therefor will be fully
paid and nonassessable by the Trust. The Holders of the Trust Securities, in
their capacities as such, shall be entitled to the same limitation of personal
liability extended to stockholders of private corporations for profit organized
under the General Corporation Law of the State of Delaware.

     (b) For so long as any Preferred Securities remain Outstanding, if, upon a
Debenture Event of Default, the Debenture Trustee fails or the holders of not
less than 25% in principal amount of the outstanding Debentures fail to declare
the principal of all of the Debentures to be immediately due and payable, the
Holders of at least 25% in Liquidation Amount of the Preferred Securities then
Outstanding shall have such right by a notice in writing to the Debenture
Issuer, the Debenture Guarantor, the Debenture Trustee and the Property Trustee;
and upon any such declaration such principal amount of and the accrued interest
on all of the Debentures shall become immediately due and payable, provided that
the payment of principal, interest, and any other amounts payable with respect
to such Debentures shall remain

                                       33
<PAGE>

subordinated to the extent provided in the Indenture.

          At any time after such a declaration of acceleration with respect to
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 in the Indenture
provided, the Holders of a majority in Liquidation Amount of the Preferred
Securities then Outstanding, by written notice to the Debenture Issuer, the
Debenture Guarantor, the Debenture Trustee and the Property Trustee, may rescind
and annul such declaration and its consequences if:

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

               (A) all overdue installments of interest (including any
          Additional Interest) on, and any other Additional Amounts with respect
          to, all of the Debentures,

               (B) the principal of and premium on any Debentures which have
          become due otherwise than by such declaration of acceleration and
          interest thereon and any Additional Amounts with respect thereto at
          the rate or rates borne by or provided for in the Debentures,

               (C) to the extent the payment of such interest or Additional
          Amounts is lawful, interest upon overdue installments of any interest
          and Additional Amounts at the rate or rates borne by or provided for
          in the Debentures, and

               (D) all sums paid or advanced by the Debenture Trustee under the
          Indenture and the reasonable compensation, expenses, disbursements and
          advances of the Debenture Trustee, its agents and counsel and all
          other amounts due the Debenture Trustee under the Indenture; and

          (ii) all Events of Default with respect to the Debentures, other than
     the non-payment of the principal of, any premium and interest on, and any
     Additional Amounts with respect to the Debentures which have become due
     solely by such acceleration, have been cured or waived as provided in
     Section 5.13 of the Indenture.

          No such rescission shall affect any subsequent default or impair any
right consequent thereon.

          The Holders of not less than a majority in Liquidation Amount of the
Preferred Securities then Outstanding may, on behalf of the Holders of all the
Preferred Securities, waive any past default under the Indenture, except a
default (i) in the payment of principal of, any premium or interest (including
any Additional Interest) on, or any other Additional Amounts with respect to,
the Debentures or (ii) in respect of a covenant or provision which under the
Indenture cannot be modified or amended without the consent of the holder of
each outstanding Debenture.

          Upon receipt by the Property Trustee of written notice declaring such
an

                                       34
<PAGE>

acceleration, or rescission and annulment thereof, by Holders of the Preferred
Securities all or part of which are represented by Book-Entry Preferred
Securities Certificates, a record date shall be established for determining
Holders of Outstanding Preferred Securities entitled to join in such notice,
which record date shall be at the close of business on the day the Property
Trustee receives such notice. The Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to join in such
notice, whether or not such Holders remain Holders after such record date;
provided, that, unless such declaration of acceleration, or rescission and
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 which 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 which has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 5.14(b).

     (c) For so long as any Preferred Securities remain Outstanding, to the
fullest extent permitted by law and subject to the terms of this Trust Agreement
and the Indenture, any Holder of Preferred Securities shall have the right, upon
a Debenture Event of Default specified in Section 5.1(1) or 5.1(2) of the
Indenture, to institute directly a proceeding against the Debenture Issuer or
the Debenture Guarantor, as the case may be, pursuant to Section 5.8 of the
Indenture, for enforcement of payment to such Holder of the principal of, and
any premium and (subject to the provisions of the Indenture) interest (including
any Additional Interest) on, and any other Additional Amounts with respect to,
such Debentures having a principal amount equal to the Liquidation Amount of the
Preferred Securities of such Holder (a "Direct Action"). In connection with any
such Direct Action, the rights of the Holders of Common Securities will be
subrogated to the rights of any Holder of Preferred Securities to the extent of
any payment made by the Debenture Issuer or the Debenture Guarantor, as the case
may be, to such Holder of Preferred Securities as a result of such Direct
Action. Except as set forth in Section 5.14(b) and (c), or as otherwise
contemplated by the Indenture, the Holders of Preferred Securities shall have no
right to exercise directly any right or remedy available to the holders of, or
in respect of, the Debentures.

                                  ARTICLE VI.
                   ACTS OF SECURITYHOLDERS; MEETINGS; VOTING

Section 6.1  Limitations on Voting Rights.

     (a) Except as provided in this Section, in Sections 5.14, 8.10 and 10.2 and
in the Indenture and as otherwise required by law, no Holder of Preferred
Securities shall have any right to vote or in any manner otherwise control the
administration, operation and management of the Trust or the obligations of the
parties hereto, nor shall anything herein set forth, or contained in the terms
of the Trust Securities Certificates, be construed so as to constitute the
Securityholders from time to time as partners or members of an association.

                                       35
<PAGE>

     (b) So long as any Debentures are held by the Property Trustee, the
Trustees shall not

          (i) direct the time, method and place of conducting any proceeding for
     any remedy available to the Debenture Trustee, or executing any trust or
     power conferred on the Debenture Trustee with respect to such Debentures,

          (ii) waive any past default which is waivable under Section 5.13 of
     the Indenture,

          (iii) exercise any right to rescind or annul a declaration that the
     principal of all the Debentures shall be due and payable, or

          (iv) consent to any amendment, modification or termination of the
     Indenture or the Debentures, where such consent shall be required,

without, in each case, obtaining the prior approval of the Holders of at least a
majority in Liquidation Amount of all Outstanding Preferred Securities;
provided, however, that where a consent under the Indenture would require the
consent of each holder of Debentures affected thereby, no such consent shall be
given by the Property Trustee without the prior written consent of each Holder
of Preferred Securities.  The Trustees shall not revoke any action previously
authorized or approved by a vote of the Holders of Preferred Securities, except
by a subsequent vote of the Holders of Preferred Securities.  The Property
Trustee shall notify all Holders of the Preferred Securities of any notice of
default received from the Debenture Trustee with respect to the Debentures.  In
addition to obtaining the foregoing approvals of the Holders of the Preferred
Securities, prior to taking any of the foregoing actions, the Trustees shall, at
the expense of the Depositor, obtain an Opinion of Counsel rendered by counsel
experienced in such matters to the effect that the Trust will not be classified
as an association taxable as a corporation for United States Federal income tax
purposes on account of such action.

     (c) If any proposed amendment to the Trust Agreement provides for, or the
Trustees otherwise propose to effect,

          (i) any action that would adversely affect in any material respect the
     powers, preferences or special rights of the Preferred Securities, whether
     by way of amendment to the Trust Agreement or otherwise, or

          (ii) the dissolution, winding-up or termination of the Trust, other
     than pursuant to the terms of this Trust Agreement, then the Holders of
     Outstanding Preferred Securities as a class will be entitled to vote on
     such amendment or proposal and such amendment or proposal shall not be
     effective except with the approval of the Holders of at least a majority in
     Liquidation Amount of the Outstanding Preferred Securities. No amendment to
     this Trust Agreement may be made if, as a result of such amendment, the
     Trust would be classified as an association taxable as a corporation for
     United States federal income tax purposes.

Section 6.2  Notice of Meetings.

                                       36
<PAGE>

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

Section 6.3  Meetings of Preferred Securityholders.

     No annual meeting of Securityholders is required to be held.  The
Administrative Trustees, however, shall call a meeting of Securityholders to
vote on any matter upon the written request of the Preferred Securityholders of
record of 25% of the Preferred Securities (based upon their Liquidation Amount)
and the Administrative Trustees or the Property Trustee may, at any time in
their discretion, call a meeting of Preferred Securityholders to vote on any
matters as to which Preferred Securityholders are entitled to vote.  Preferred
Securityholders of record of 50% of the Outstanding Preferred Securities (based
upon their Liquidation Amount), present in person or by proxy, shall constitute
a quorum at any meeting of Securityholders.  If a quorum is present at a
meeting, an affirmative vote by the Preferred Securityholders of record present,
in person or by proxy, holding a majority of the Preferred Securities (based
upon their Liquidation Amount) held by the Preferred Securityholders of record
present, either in person or by proxy, at such meeting shall constitute the
action of the Securityholders, unless this Trust Agreement requires a greater
number of affirmative votes.

Section 6.4  Voting Rights.

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

Section 6.5  Proxies, etc.

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

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Section 6.6  Securityholder Action by Written Consent.

     Any required approval or action which may be given or taken by
Securityholders at a meeting convened for such purpose may be given or taken
without a meeting and without prior notice if Securityholders holding a majority
of all Outstanding Trust Securities (based upon their Liquidation Amount)
entitled to vote in respect of such action (or such larger proportion thereof as
shall be required by any express provision of this Trust Agreement) shall
consent to the action in writing.

Section 6.7  Record Date for Voting and Other Purposes.

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

Section 6.8  Acts of Securityholders.

     Any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Trust Agreement to be given, made or
taken by Securityholders or Owners may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Securityholders
or Owners in person or by an agent duly appointed in writing; and, except as
otherwise expressly provided herein, such action shall become effective when
such instrument or instruments are delivered to an Administrative Trustee.  Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Securityholders or
Owners signing such instrument or instruments.  Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Trust Agreement and (subject to Section 8.1) conclusive in favor
of the Trustees, if made in the manner provided in this Section.  The fact and
date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a
notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing
acknowledged to him the execution thereof.  Where such execution is by a signer
acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority.  The fact and
date of the execution of any such instrument or writing, or the authority of the
Person executing the same, may also be proved in any other manner which any
Trustee receiving the same deems sufficient.  The ownership of Preferred
Securities shall be proved by the Securities Register.  Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the
Securityholder of any Trust Security shall bind every future Securityholder of
the same Trust Security and the Securityholder of every Trust Security issued
upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the
Trustees or the

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<PAGE>

Trust in reliance thereon, whether or not notation of such action is made upon
such Trust Security. Without limiting the foregoing, a Securityholder entitled
hereunder to take any action hereunder with regard to any particular Trust
Security may do so with regard to all or any part of the Liquidation Amount of
such Trust Security or by one or more duly appointed agents each of which may do
so pursuant to such appointment with regard to all or any part of such
Liquidation Amount. If any dispute shall arise between the Securityholders and
the Administrative Trustees or among such Securityholders or Trustees with
respect to the authenticity, validity or binding nature of any request, demand,
authorization, direction, consent, waiver or other Act of such Securityholder or
Trustee under this Article VI, then the determination of such matter by the
Property Trustee shall be conclusive with respect to such matter.

Section 6.9  Inspection of Records.

     Upon reasonable notice to the Administrative Trustees and the Property
Trustee, the records of the Trust shall be open to inspection by Securityholders
during normal business hours for any purpose reasonably related to such
Securityholder's interest as a Securityholder.

                                 ARTICLE VII.
                         REPRESENTATIONS AND WARRANTIES

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

     The Property Trustee and the Delaware Trustee, each severally on behalf of
and solely as each such representation or warranty applies to itself, hereby
represents and warrants for the benefit of the Depositor and the Securityholders
that:

     (a) the Property Trustee is a national banking association duly organized,
validly existing and in good standing under the laws of the United States, and
the Delaware Trustee is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware;

     (b) each of the Property Trustee and the Delaware Trustee has full
corporate power, authority and legal right to execute, deliver and perform its
obligations under this Trust Agreement and has taken all necessary action to
authorize the execution, delivery and performance by it of this Trust Agreement,
and, in the case of the Delaware Trustee, satisfies for the Trust Section
3807(a) of the Delaware Business Trust Act;

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

     (d) the execution, delivery and performance by each of the Property Trustee
and the Delaware Trustee of this Trust Agreement has been duly authorized by all
necessary corporate or other action on the part of the Property Trustee or the
Delaware Trustee, as the case may be, and

                                       39
<PAGE>

does not require any approval of stockholders of the Property Trustee or the
Delaware Trustee, and such execution, delivery and performance will not (i)
violate the Property Trustee's or the Delaware Trustee's Charter or By-laws,
(ii) violate any provision of, or constitute, with or without notice or lapse of
time, a default under, or result in the creation or imposition of, any Lien on
any properties included in the Trust Property pursuant to the provisions of, any
indenture, mortgage, credit agreement, license or other agreement or instrument
to which the Property Trustee or the Delaware Trustee, as the case may be, is a
party or by which it is bound, or (iii) violate any law, governmental rule or
regulation of the United States or the State of Delaware, as the case may be,
governing the corporate, banking or trust powers of the Property Trustee or the
Delaware Trustee (as appropriate in context) or any order, judgment or decree
applicable to the Property Trustee or the Delaware Trustee;

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

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

Section 7.2  Representations and Warranties of Depositor.

     The Depositor hereby represents and warrants for the benefit of the
Securityholders that the Trust Securities Certificates issued at each Time of
Delivery on behalf of the Trust have been duly authorized and will have been,
duly and validly executed, issued and delivered by the Trustees pursuant to the
terms and provisions of, and in accordance with the requirements of, this Trust
Agreement and the Securityholders will be, as of each such date, entitled to the
benefits of this Trust Agreement.

                                  ARTICLE VIII.
                                  THE TRUSTEES

Section 8.1  Certain Duties and Responsibilities.

     (a) The duties and responsibilities of the Trustees shall be as provided by
this Trust Agreement and, in the case of the Property Trustee, subject to the
Trust Indenture Act. Notwithstanding the foregoing, no provision of this Trust
Agreement shall require the Trustees to

                                       40
<PAGE>

expend or risk their own funds or otherwise incur any financial liability in the
performance of any of their duties hereunder, or in the exercise of any of their
rights or powers, if they shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Trust Agreement relating to the conduct or affecting the
liability of or affording protection to the Trustees shall be subject to the
provisions of this Section. To the extent that, at law or in equity, an
Administrative Trustee has duties (including fiduciary duties) and liabilities
relating thereto to the Trust or to the Securityholders, such Administrative
Trustee shall not be liable to the Trust or to any Securityholder for such
Trustee's good faith reliance on the provisions of this Trust Agreement. The
provisions of this Trust Agreement, to the extent that they restrict the duties
and liabilities of the Administrative Trustees otherwise existing at law or in
equity, are agreed by the Depositor and the Securityholders to replace such
other duties and liabilities of the Administrative Trustees.

     (b) All payments made by the Property Trustee or a Paying Agent in respect
of the Trust Securities shall be made only from the revenue and proceeds from
the Trust Property and only to the extent that there shall be sufficient revenue
or proceeds from the Trust Property to enable the Property Trustee or a Paying
Agent to make payments in accordance with the terms hereof. Each Securityholder,
by its acceptance of a Trust Security, agrees that it will look solely to the
revenue and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Trustees are not personally
liable to it for any amount distributable in respect of any Trust Security or
for any other liability in respect of any Trust Security. This Section 8.1(b)
does not limit the liability of the Trustees expressly set forth elsewhere in
this Trust Agreement and, in the case of the Property Trustee, in the Trust
Indenture Act.

     (c) No provision of this Trust Agreement shall be construed to relieve the
Property Trustee from liability for its own bad faith, negligence or willful
misconduct, except that: (i) the Property Trustee undertakes to perform only
those duties specifically set forth in this Agreement, provided that, it must
exercise the same degree of care as a prudent person would exercise in the
conduct of his or her own affairs; (ii) the Property Trustee shall not be liable
for any error of judgment made in good faith by an authorized officer of the
Property Trustee, unless it shall be proved that the Property Trustee was
negligent in ascertaining the pertinent facts; (iii) the Property Trustee shall
not be liable with respect to any action taken or omitted to be taken by it in
good faith in accordance with the direction of the Holders of not less than a
majority in Liquidation Amount of the Trust Securities relating to the time,
method and place of conducting any proceeding for any remedy available to the
Property Trustee, or exercising any trust or power conferred upon the Property
Trustee under this Trust Agreement; (iv) the Property Trustee's sole duty with
respect to the custody, safe keeping and physical preservation of the Debentures
and the Payment Account shall be to deal with such Property in a similar manner
as the Property Trustee deals with similar property for its own account, subject
to the protections and limitations on liability afforded to the Property Trustee
under this Trust Agreement and the Trust Indenture Act; (v) the Property Trustee
shall not be liable for any interest on any money received by it except as it
may otherwise agree with the Depositor; and money held by the Property Trustee
need not be segregated from other funds held by it except in relation to the
Payment Account maintained by the Property Trustee pursuant to Section 3.1 and
except to the extent otherwise

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<PAGE>

required by law; and (vi) the Property Trustee shall not be responsible for
monitoring the compliance by the Administrative Trustees or the Depositor with
their respective duties under this Trust Agreement, nor shall the Property
Trustee be liable for the default or misconduct of the Administrative Trustees
or the Depositor.

Section 8.2  Certain Notices.

     Within ninety (90) Business Days after the occurrence of any Event of
Default actually known to the Property Trustee, the Property Trustee shall
transmit, in the manner and to the extent provided in Section 10.8, notice of
such Event of Default to the Securityholders, the Administrative Trustees and
the Depositor, unless such Event of Default shall have been cured or waived.
Within five Business Days after the receipt of notice of the Debenture Issuer's
exercise of its right to defer the payment of interest on the Debentures
pursuant to the Indenture, the Administrative Trustees shall transmit, in the
manner and to the extent provided in Section 10.8, notice of such exercise to
the Securityholders and the Property Trustee, unless such exercise shall have
been revoked.

Section 8.3  Certain Rights of Property Trustee.

     Subject to the provisions of Section 8.1:

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

     (b) if (i) in performing its duties under this Trust Agreement the Property
Trustee is required to decide between alternative courses of action or (ii) in
construing any of the provisions of this Trust Agreement the Property Trustee
finds the same ambiguous or inconsistent with any other provisions contained
herein or (iii) the Property Trustee is unsure of the application of any
provision of this Trust Agreement, then, except as to any matter as to which the
Preferred Securityholders are entitled to vote under the terms of this Trust
Agreement, the Property Trustee shall deliver a notice to the Depositor
requesting written instructions of the Depositor as to the course of action to
be taken and the Property Trustee shall take such action, or refrain from taking
such action, as the Property Trustee shall be instructed in writing to take, or
to refrain from taking, by the Depositor and the Property Trustee shall be fully
protected in acting in accordance with such instructions; provided, however,
that if the Property Trustee does not receive such instructions of the Depositor
within ten (10) Business Days after it has delivered such notice, or such
reasonably shorter period of time set forth in such notice (which to the extent
practicable shall not be less than two (2) Business Days), it may, but shall be
under no duty to, take or refrain from taking such action not inconsistent with
this Trust Agreement as it shall deem advisable and in the best interests of the
Securityholders, in which event the Property Trustee shall have no liability
except for its own bad faith, negligence or willful misconduct;

                                       42
<PAGE>

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

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

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

     (f) the Property Trustee may consult with counsel (which counsel may be
counsel to the Depositor or any of its Affiliates, and may include any of its
employees) 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 Property Trustee shall have the right at any time to seek
instructions concerning the administration of this Trust Agreement from any
court of competent jurisdiction;

     (g) the Property Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Trust Agreement at the request or
direction of any of the Securityholders pursuant to this Trust Agreement, unless
such Securityholders shall have offered to the Property Trustee reasonable
security or indemnity against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;

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

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

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

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<PAGE>

received, and (iii) shall be protected in acting in accordance with such
instructions; and

     (k) except as otherwise expressly provided by this Trust Agreement, the
Property Trustee shall not be under any obligation to take any action that is
discretionary under the provisions of this Trust Agreement.

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

Section 8.4  Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Trust Securities Certificates
shall be taken as the statements of the Depositor, and the Trustees do not
assume any responsibility for their correctness.  The Trustees shall not be
accountable for the use or application by the Debenture Issuer of the proceeds
of the Debentures.

Section 8.5  May hold Securities.

     Any Trustee or any other agent of any Trustee or the Trust, in its
individual or any other capacity, may become the owner or pledgee of Trust
Securities and, except as otherwise provided in the definition of "Outstanding"
in Article I and subject to Sections 8.8 and 8.13, may otherwise deal with the
Trust with the same rights it would have if it were not a Trustee or such other
agent.

Section 8.6  Compensation; Indemnity; Fees.

     The Depositor agrees:

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

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

     (c) to indemnify each of the Trustees and their agents, officers, directors
and employees or any predecessor Trustee for, and to hold them harmless against,
any loss, damage, claims, liability, penalty or expense incurred without bad
faith, negligence or willful misconduct on their

                                       44
<PAGE>

part, arising out of or in connection with the acceptance or administration of
this Trust Agreement, including the costs and expenses of defending themselves
against any claim or liability in connection with the exercise or performance of
any of their powers or duties hereunder.

          The provisions of this Section 8.6 shall survive the termination of
this Trust Agreement or the resignation or removal of any Trustee.  No Trustee
may claim any lien or charge on any Trust Property as a result of any amount due
pursuant to this Section 8.6.

Section 8.7  Corporate Property Trustee Required; Eligibility of Trustees.

     (a) There shall at all times be a Property Trustee hereunder. The Property
Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act
to act as such and has a combined capital and surplus of at least $50,000,000.
If any such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of its supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Property Trustee
with respect to the Trust Securities shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.

     (b) There shall at all times be one or more Administrative Trustees
hereunder. Each Administrative Trustee shall be either a natural person who is
at least 21 years of age or a legal entity that shall act through one or more
persons authorized to bind that entity.

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

Section 8.8  Conflicting Interests.

     If the Property Trustee has or shall acquire a conflicting interest within
the meaning of the Trust Indenture Act, the Property Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Trust
Agreement.  Subject to the foregoing, the Depositor and any Trustee may engage
in or possess an interest in other business ventures of any nature or
description, independently or with others, similar or dissimilar to the business
of the Trust, and the Trust and the Holders shall have no rights by virtue of
this Trust Agreement in and to such independent ventures or the income or
profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or
improper.  Neither the Depositor, nor any 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 the Depositor or any 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

                                       45
<PAGE>

investment or other opportunity. Any Trustee may engage in any financial or
other transaction with the Depositor or any Affiliate of the Depositor, or may
act as depository for, trustee or agent for, or act on any committee or body of
holders of, securities or other obligations of the Depositor or its Affiliates.

Section 8.9  Co-Trustees and Separate Trustee.

     Unless an Event of Default shall have occurred and be continuing, at any
time or times, for the purpose of meeting the legal requirements of the Trust
Indenture Act or of any jurisdiction in which any part of the Trust Property may
at the time be located, the Depositor and the Administrative Trustees, by agreed
action of the majority of such Trustees, shall have power to appoint, and upon
the written request of the Administrative Trustees, the Depositor shall for such
purpose join with the Administrative Trustees in the execution, delivery, and
performance of all instruments and agreements necessary or proper to appoint,
one or more Persons approved by the Property Trustee either to act as co-
trustee, jointly with the Property Trustee, of all or any part of such Trust
Property, or to the extent required by law to act as separate trustee of any
such property, in either case with such powers as may be provided in the
instrument of appointment, and to vest in such Person or Persons in the capacity
aforesaid, any property, title, right or power deemed necessary or desirable,
subject to the other provisions of this Section.  If the Depositor does not join
in such appointment within 15 days after the receipt by it of a request so to
do, or in case a Debenture Event of Default has occurred and is continuing, the
Property Trustee alone shall have power to make such appointment.  Any co-
trustee or separate trustee appointed pursuant to this Section shall either be
(i) a natural person who is at least 21 years of age and a resident of the
United States or (ii) a legal entity with its principal place of business in the
United States that shall act through one or more persons authorized to bind such
entity.  Should any written instrument from the Depositor be required by any co-
trustee or separate trustee so appointed for more fully confirming to such co-
trustee or separate trustee such property, title, right, or power, any and all
such instruments shall, on request, be executed, acknowledged and delivered by
the Depositor.  Every co-trustee or separate trustee shall, to the extent
permitted by law, but to such extent only, be appointed subject to the following
terms, namely:

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

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

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<PAGE>

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

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

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

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

Section 8.10  Resignation and Removal; Appointment of Successor.

     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 Section 8.11.  Subject to the
immediately preceding sentence, the Relevant Trustee may resign at any time with
respect to the Trust Securities by giving written notice thereof to the
Depositor.  If the instrument of acceptance by the successor Trustee required by
Section 8.11 shall not have been delivered to the Relevant Trustee within 30
days after the giving of such notice of resignation, the Relevant Trustee may
petition, at the expense of the Depositor, any court of competent jurisdiction
for the appointment of a successor Relevant Trustee with respect to the Trust
Securities.  Unless a Debenture Event of Default shall have occurred and be
continuing, any Trustee may be removed at any time by Act of the Common
Securityholder.  If a Debenture Event of Default shall have occurred and be
continuing, the Property Trustee or the Delaware Trustee, or both of them, may
be removed at such time by Act of the Holders of a majority in Liquidation
Amount of the Preferred Securities, delivered to the Relevant Trustee (in its
individual capacity and on behalf of the Trust).  In no event will the Holders
of Preferred Securities have the right to vote to appoint, remove or replace the
Administrative Trustees.  An Administrative Trustee may be removed by Act of the
Common Securityholder at any time.  If any Trustee shall resign, be removed or
become incapable of acting as Trustee, or if a vacancy shall occur in the office
of any Trustee for any cause, at a time when no Debenture Event of Default shall
have occurred and be continuing, the Common Securityholder, by Act of the Common
Securityholder delivered to the retiring Trustee, shall promptly appoint a
successor Trustee or Trustees with respect to the Trust Securities and the
Trust, and the retiring Trustee shall comply with the applicable requirements of
Section 8.11.  If the Property Trustee or the Delaware Trustee shall resign, be
removed or become incapable of continuing to act as the

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<PAGE>

Property Trustee or the Delaware Trustee, as the case may be, at a time when a
Debenture Event of Default shall have occurred and be continuing, the Preferred
Securityholders, by Act of the Securityholders of a majority in Liquidation
Amount of the Preferred Securities then Outstanding delivered to the retiring
Relevant Trustee, shall promptly appoint a successor Relevant Trustee or
Trustees with respect to the Trust Securities and the Trust, and such successor
Trustee shall comply with the applicable requirements of Section 8.11. If an
Administrative Trustee shall resign, be removed or become incapable of acting as
Administrative Trustee, at a time when a Debenture Event of Default shall have
occurred and be continuing, the Common Securityholder by Act of the Common
Securityholder delivered to the Administrative Trustee shall promptly appoint a
successor Administrative Trustee or Administrative Trustees with respect to the
Trust Securities and the Trust, and such successor Administrative Trustee or
Trustees shall comply with the applicable requirements of Section 8.11. If no
successor Relevant Trustee with respect to the Trust Securities shall have been
so appointed by the Common Securityholder or the Preferred Securityholders and
accepted appointment in the manner required by Section 8.11, any Securityholder
who has been a Securityholder of Trust Securities for at least six months may,
on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Relevant Trustee with
respect to the Trust Securities. The Depositor shall give notice of each
resignation and each removal of the Property Trustee or the Delaware Trustee and
each appointment of a successor Property Trustee or Delaware Trustee to all
Securityholders in the manner provided in Section 10.8. Each notice shall
include the name of the successor Relevant Trustee and the address of its
Corporate Trust Office if it is the Property Trustee. Notwithstanding the
foregoing or any other provision of this Trust Agreement, in the event any
Administrative Trustee or a Delaware Trustee who is a natural person dies or
becomes, in the opinion of the Depositor, incompetent or incapacitated, the
vacancy created by such death, incompetence or incapacity may be filled by (a)
the unanimous act of remaining Administrative Trustees if there are at least two
of them or (b) otherwise by the Depositor (with the successor in each case being
a Person who satisfies the eligibility requirement for Administrative Trustees
set forth in Section 8.7).

Section 8.11  Acceptance of Appointment by Successor.

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

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<PAGE>

     (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 Trust Securities and the Trust and

     (b) shall add to or change any of the provisions of this Trust Agreement as
shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Relevant Trustee, it being understood that nothing
herein or in such amendment shall constitute such Relevant Trustees co-trustees
of the same trust and that each such Relevant Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Relevant Trustee 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 with respect to the Trust Securities and the Trust; 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 Trust Securities and the Trust.
Upon request of any such successor Relevant Trustee, the Trust shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Relevant Trustee all such rights, powers and trusts referred to
in the first or second preceding paragraph, as the case may be. No successor
Relevant Trustee shall accept its appointment unless at the time of such
acceptance such successor Relevant Trustee shall be qualified and eligible under
this Article.

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

     Any corporation into which the Property Trustee or the Delaware Trustee (or
any Administrative Trustee that is not a natural person) may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Relevant Trustee
shall be a party, shall be the successor of such Relevant Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

Section 8.13  Preferential Collection of Claims Against Depositor, Debenture
Issuer or Trust.

     If and when the Property Trustee or the Delaware Trustee shall be or become
a creditor of the Depositor, the Debenture Issuer or the Trust (or any other
obligor upon the Debentures or the Trust Securities), the Property Trustee or
the Delaware Trustee, as the case may be, shall be subject to and shall take all
actions necessary in order to comply with the provisions of the Trust Indenture
Act regarding the collection of claims against the Depositor, Debenture Issuer
or Trust (or any such other obligor).

Section 8.14  Reports by Property Trustee.

     (a) Within 60 days after September 15 of each year commencing with the
first September 15

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<PAGE>

following the first issuance of Preferred Securities pursuant to this Trust
Agreement, the Property Trustee shall transmit to all Securityholders in
accordance with Section 10.8, and to the Depositor, a brief report dated as of
such September 15 with respect to: (i) its eligibility under Section 8.7 or, in
lieu thereof, if to the best of its knowledge it has continued to be eligible
under said Section, a written statement to such effect; (ii) a statement that
the Property Trustee has complied with all of its obligations under this Trust
Agreement during the twelve-month period (or, in the case of the initial report,
the period since the Closing Time) ending with such September 15 or, if the
Property Trustee has not complied in any material respect with such obligations,
a description of such noncompliance; and (iii) any change in the property and
funds in its possession as Property Trustee since the date of its last report
and any action taken by the Property Trustee in the performance of its duties
hereunder which it has not previously reported and which in its opinion
materially affects the Trust Securities.

     (b) In addition the Property Trustee shall transmit to Securityholders such
reports concerning the Property Trustee and its actions under this Trust
Agreement as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.

     (c) A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Property Trustee with each stock exchange, interdealer
quotation system or other self-regulatory organization upon which the Trust
Securities are listed or traded, with the Commission and with the Depositor.

Section 8.15  Reports to the Property Trustee.

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

Section 8.16  Evidence of Compliance with Conditions Precedent.

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

Section 8.17  Number of Trustees.

     (a) The number of Trustees shall be four, provided that the Holder of all
of the Common Securities by written instrument may increase or decrease the
number of Administrative Trustees. The Property Trustee and the Delaware Trustee
may be the same person if the Property Trustee meets the applicable
requirements.

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<PAGE>

     (b) If a Trustee ceases to hold office for any reason and the number of
Administrative Trustees is not reduced pursuant to Section 8.17(a), or if the
number of Trustees is increased pursuant to Section 8.17(a), a vacancy shall
occur. The vacancy shall be filled with a Trustee appointed in accordance with
Section 8.10.

     (c) The death, resignation, retirement, removal, bankruptcy, incompetence
or incapacity to perform the duties of a Trustee shall not operate to annul,
dissolve or terminate the Trust. Whenever a vacancy in the number of
Administrative Trustees shall occur, until such vacancy is filled by the
appointment of an Administrative Trustee in accordance with Section 8.10, the
Administrative Trustees in office, regardless of their number (and
notwithstanding any other provision of this Agreement), shall have all the
powers granted to the Administrative Trustees and shall discharge all the duties
imposed upon the Administrative Trustees by this Trust Agreement.

Section 8.18  Delegation of Power.

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

     (b) The Administrative Trustees shall have power to delegate from time to
time to such of their number or to the Depositor the doing of such things and
the execution of such instruments either in the name of the Trust or the names
of the Administrative Trustees or otherwise as the Administrative 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.

                                  ARTICLE IX.
                DISSOLUTION, LIQUIDATION, TERMINATION AND MERGER

Section 9.1  Dissolution upon Expiration Date.

     Unless earlier dissolved, the Trust shall automatically dissolve on
December 31, 2054 (the "Expiration Date").

Section 9.2  Early Dissolution.

     The first to occur of any of the following events is an "Early Termination
Event", upon the occurrence of which the Trust shall be dissolved:

     (a) the occurrence of a Bankruptcy Event in respect of, or the dissolution
or liquidation of, the Debenture Issuer or the Debenture Guarantor;

     (b) the written direction to the Property Trustee from the Depositor at any
time (which direction is optional and wholly within the discretion of the
Depositor) to dissolve the Trust and distribute a Like Amount of Debentures to
Securityholders in exchange for the Trust Securities;

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<PAGE>

     (c) the redemption of all of the Trust Securities in connection with the
redemption of all the Debentures; and

     (d) the entry of an order for dissolution of the Trust by a court of
competent jurisdiction.

Section 9.3  Termination.

     The respective obligations and responsibilities of the Trustees and the
Trust shall terminate upon the latest to occur of the following:

     (a) the distribution by the Property Trustee to Securityholders upon the
liquidation of the Trust pursuant to Section 9.4, or upon the redemption of all
of the Trust Securities pursuant to Section 4.2, of all amounts required to be
distributed hereunder upon the final payment of the Trust Securities;

     (b) the payment of any expenses owed by the Trust; and

     (c) the discharge of all administrative duties of the Administrative
Trustees, including the performance of any tax reporting obligations with
respect to the Trust or the Securityholders.

Section 9.4  Liquidation.

     (a) If an Early Termination Event specified in clause (a), (b), or (d) of
Section 9.2 occurs or upon the Expiration Date, the Trust shall be liquidated by
the Trustees as expeditiously as the Trustees determine to be possible by
distributing, after satisfaction of liabilities to creditors of the Trust as
provided by applicable law, to each Securityholder a Like Amount of Debentures,
subject to Section 9.4(e).

     (b) Notice of liquidation shall be given by the Property Trustee by first-
class mail, postage prepaid mailed not later than 30 nor more than 60 days prior
to the Liquidation Date to each Holder of Trust Securities at such Holder's
address appearing in the Securities Register. All notices of liquidation shall:
(i) state the Liquidation Date; (ii) state that from and after the Liquidation
Date, the Trust Securities will no longer be deemed to be Outstanding and any
Trust Securities Certificates not surrendered for exchange will be deemed to
represent a Like Amount of Debentures; and (iii) provide such information with
respect to the mechanics by which Holders may exchange Trust Securities
Certificates for Debentures, or if Section 9.4(e) applies, receive a Liquidation
Distribution, as the Administrative Trustees or the Property Trustee shall deem
appropriate.

     (c) Except where Section 9.2(c) or 9.4(e) applies, in order to effect the
liquidation of the Trust and distribution of the Debentures to Securityholders,
the Property Trustee shall establish a record date for such distribution (which
shall be not more than 45 days prior to the Liquidation Date) and, either itself
acting as exchange agent or through the appointment of a separate exchange
agent, shall establish such procedures as it shall deem appropriate to effect
the distribution of Debentures in exchange for the Outstanding Trust Securities
Certificates.

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<PAGE>

     (d) Except where Section 9.2(c) or 9.4(e) applies, on and after the
Liquidation Date, (i) the Trust Securities will no longer be deemed to be
Outstanding, (ii) certificates representing a Like Amount of Debentures will be
issued to the Holders of Trust Securities Certificates, upon surrender of such
certificates to the Administrative Trustees or their agent for exchange, (iii)
the Depositor shall cause the Debenture Issuer to use its reasonable efforts to
have the Debentures listed or traded on the such stock exchange, interdealer
quotation system and/or other self-regulatory organization as the Preferred
Securities are then listed or traded, (iv) any Trust Securities Certificates not
so surrendered for exchange will be deemed to represent a Like Amount of
Debentures, accruing interest at the rate provided for in the Debentures from
the last Distribution Date on which a Distribution was made on such Trust
Securities Certificates until such certificates are so surrendered (and until
such certificates are so surrendered, no payments of interest or principal will
be made to Holders of Trust Securities Certificates with respect to such
Debentures) and (v) all rights of Securityholders holding Trust Securities will
cease, except the right of such Securityholders to receive Debentures upon
surrender of Trust Securities Certificates.

     (e) In the event that, notwithstanding the other provisions of this Section
9.4, whether because of an order for dissolution entered by a court of competent
jurisdiction or otherwise, distribution of the Debentures in the manner provided
herein is determined by the Property Trustee not to be practical, the Trust
Property shall be liquidated, and the Trust shall be wound-up and terminated by
the Property Trustee in such manner as the Property Trustee determines. In such
event, Securityholders will be entitled to receive out of the assets of the
Trust available for distribution to Securityholders, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, an amount
equal to the Liquidation Amount per Trust Security plus accumulated and unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"). If, upon any such winding up, 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, subject to the next
succeeding sentence, the amounts payable by the Trust on the Trust Securities
shall be paid on a pro rata basis (based upon Liquidation Amounts). The Holder
of the Common Securities will be entitled to receive Liquidation Distributions
upon any such dissolution pro rata (determined as aforesaid) with Holders of
Preferred Securities, except that, if a Debenture Event of Default has occurred
and is continuing, the Preferred Securities shall have a priority over the
Common Securities.

Section 9.5  Mergers, Consolidations, Amalgamations or Replacements of the
Trust.

     The Trust may not merge with or into, convert into, consolidate,
amalgamate, or be replaced by, or convey, transfer or lease its properties and
assets substantially as an entirety to any corporation or other entity, except
pursuant to this Section 9.5 or Section 9.4.  The Trust may, at the request of
the Depositor, with the consent of only the Administrative Trustees and without
the consent of the Holders of the Preferred Securities, merge with or into,
convert into, consolidate, amalgamate, or be replaced by or convey, transfer or
lease its properties and assets substantially as an entirety to a trust
organized as such under the laws of any State; provided, that (i) such successor
entity either (a) expressly assumes all of the obligations of the Trust with
respect to the Preferred Securities or (b) substitutes for the Preferred
Securities other securities

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<PAGE>

having substantially the same terms as the Preferred Securities (the "Successor
Securities") so long as the Successor Securities rank the same as the Preferred
Securities rank in priority with respect to distributions and payments upon
liquidation, redemption and otherwise, (ii) the Depositor expressly appoints a
trustee of such successor entity possessing the same powers and duties as the
Property Trustee as the holder of the Debentures, (iii) the Successor Securities
are listed or traded, or any Successor Securities will be listed upon
notification of issuance, on any national securities exchange or other
organization on which the Preferred Securities are then listed or traded, if
any, (iv) such merger, conversion, consolidation, amalgamation, replacement,
conveyance, transfer or lease does not cause the Preferred Securities (including
any Successor Securities) to be downgraded by any nationally recognized
statistical rating organization, (v) such merger, conversion, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely
affect the rights, preferences and privileges of the Holders of the Preferred
Securities (including any Successor Securities) in any material respect, (vi)
such successor entity has a purpose substantially identical to that of the
Trust, (vii) prior to such merger, conversion, consolidation, amalgamation,
replacement, conveyance, transfer or lease, the Depositor has received an
Opinion of Counsel rendered by independent counsel experienced in such matters
to the effect that (a) such merger, conversion, consolidation, amalgamation,
replacement, conveyance, transfer or lease does not adversely affect the rights,
preferences and privileges of the Holders of the Preferred Securities (including
any Successor Securities) in any material respect, and (b) following such
merger, conversion, consolidation, amalgamation, replacement, conveyance,
transfer or lease, neither the Trust nor such successor entity will be required
to register as an investment company under the Investment Company Act and (viii)
the Depositor (or any permitted successor or assignee) owns all of the common
securities of such successor entity and guarantees the obligations of such
successor entity under the Successor Securities at least to the extent provided
by the Guarantee. Notwithstanding the foregoing, the Trust shall not, except
with the consent of holders of 100% in Liquidation Amount of the Preferred
Securities, consolidate, amalgamate, merge with or into, convert into, or be
replaced by or convey, transfer or lease its properties and assets substantially
as an entirety to any other entity or permit any other entity to consolidate,
amalgamate, merge with or into, convert into, or replace it if such
consolidation, amalgamation, merger, conversion, replacement, conveyance,
transfer or lease would cause the Trust or the successor entity to be classified
as other than a grantor trust for United States Federal income tax purposes.

                                  ARTICLE X.
                           MISCELLANEOUS PROVISIONS

Section 10.1  Limitation of Rights of Securityholders.

     The death or incapacity of any person having an interest, beneficial or
otherwise, in Trust Securities shall not operate to terminate this Trust
Agreement, nor entitle the legal representatives or heirs of such person or any
Securityholder for such person, to claim an accounting, take any action or bring
any proceeding in any court for a partition or winding up of the arrangements
contemplated hereby, nor otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

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<PAGE>

Section 10.2  Amendment.

     (a) This Trust Agreement may be amended from time to time by the Trustees
and the Depositor, without the consent of any Securityholders, (i) to cure any
ambiguity, correct or supplement any provision herein which may be inconsistent
with any other provision herein, or to make any other provisions with respect to
matters or questions arising under this Trust Agreement, which shall not be
inconsistent with the other provisions of this Trust Agreement, or (ii) to
modify, eliminate or add to any provisions of this Trust Agreement to such
extent as shall be necessary to ensure that the Trust will be classified for
United States Federal income tax purposes as a grantor trust at all times that
any Trust Securities are outstanding or to ensure that the Trust will not be
required to register as an investment company under the Investment Company Act;
provided, however, that in the case of clause (i), such action shall not
adversely affect in any material respect the interests of any Securityholder.
Any such amendments of this Trust Agreement shall become effective when notice
thereof is given to the Securityholders.

     (b) Except as provided in Section 10.2(c) hereof, any provision of this
Trust Agreement may be amended by the Trustees and the Depositor with (i) the
consent of Trust Securityholders representing not less than a majority (based
upon Liquidation Amounts) of the Trust Securities then Outstanding and (ii)
receipt by the Trustees of an Opinion of Counsel to the effect that such
amendment or the exercise of any power granted to the Trustees in accordance
with such amendment will not affect the Trust's status as a grantor trust for
United States Federal income tax purposes or the Trust's exemption from status
of an investment company under the Investment Company Act.

     (c) In addition to and notwithstanding any other provision in this Trust
Agreement, without the consent of each affected Securityholder, this Trust
Agreement may not be amended to (i) change the amount or timing of any
Distribution on the Trust Securities or otherwise adversely affect the amount of
any Distribution required to be made in respect of the Trust Securities as of a
specified date or (ii) restrict the right of a Securityholder to institute suit
for the enforcement of any such payment on or after such date. Notwithstanding
any other provision herein, without the unanimous consent of the
Securityholders, this paragraph (c) of this Section 10.2 may not be amended.

     (d) Notwithstanding any other provisions of this Trust Agreement, no
Trustee shall enter into or consent to any amendment to this Trust Agreement
which would cause the Trust to fail or cease to qualify for the exemption from
status of an investment company under the Investment Company Act or fail or
cease to be classified as a grantor trust for United States Federal income tax
purposes.

     (e) Notwithstanding anything in this Trust Agreement to the contrary, this
Trust Agreement may not be amended in a manner which imposes any additional
obligation on the Depositor, the Property Trustee or the Delaware Trustee
without the consent of the Depositor, the Property Trustee or the Delaware
Trustee, as the case may be.

     (f) In the event that any amendment to this Trust Agreement is made, the
Administrative Trustees shall promptly provide to the Depositor a copy of such
amendment.

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<PAGE>

     (g) Neither the Property Trustee nor the Delaware Trustee shall be required
to enter into any amendment to this Trust Agreement which affects its own
rights, duties or immunities under this Trust Agreement. The Property Trustee
shall be entitled to receive an Opinion of Counsel and an Officers' Certificate
stating that any amendment to this Trust Agreement is in compliance with this
Trust Agreement.

Section 10.3  Separability.

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

Section 10.4  Governing Law.

     This Trust Agreement and the rights and obligations of each of the
Securityholders, the Trust and the Trustees with respect to this Trust Agreement
and the Trust Securities shall be construed in accordance with and governed by
the laws of the State of Delaware.

Section 10.5  Payments due on Non-Business Day.

     If the date fixed for any payment on any Trust Security shall be a day that
is not a Business Day, then such payment need not be made on such date but may
be made on the next succeeding day that is a Business Day (except as otherwise
provided in Sections 4.1(a) and 4.2(d)), with the same force and effect as
though made on the date fixed for such payment, and no interest shall accrue
thereon for the period after such date.

Section 10.6  Successors.

     This Trust Agreement shall be binding upon and shall inure to the benefit
of any successor to the Depositor, the Trust or the Relevant Trustee, including
any successor by operation of law.  Except in connection with a consolidation,
merger or sale involving the Depositor that is permitted under Article Eight of
the Indenture and pursuant to which the assignee agrees in writing to perform
the Depositor's obligations hereunder, the Depositor shall not assign its
obligations hereunder.

Section 10.7  Headings.

     The Article and Section headings are for convenience only and shall not
affect the construction of this Trust Agreement.

Section 10.8  Reports, Notices and Demands.

     Any report, notice, demand or other communication which by any provision of
this Trust Agreement is required or permitted to be given or served to or upon
any Securityholder or the Depositor may be given or served in writing by deposit
thereof, first-class postage prepaid, in the United States mail, hand delivery
or facsimile transmission, in each case, addressed, (a) in the case of a
Preferred Securityholder, to such Preferred Securityholder as such
Securityholder's

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<PAGE>

name and address may appear on the Securities Register; and (b) in the case of
the Common Securityholder or the Depositor, to ACE INA Holdings Inc., Two
Liberty Place, 1601 Chestnut Street, Philadelphia, Pennsylvania 19101,
Attention: General Counsel, facsimile no.: 215-761-5380. Any notice to Preferred
Securityholders shall also be given to such owners as have, within two years
preceding the giving of such notice, filed their names and addresses with the
Property Trustee for that purpose. Such notice, demand or other communication to
or upon a Securityholder shall be deemed to have been sufficiently given or
made, for all purposes, upon hand delivery, mailing or transmission. Any notice,
demand or other communication which by any provision of this Trust Agreement is
required or permitted to be given or served to or upon the Trust, the Property
Trustee or the Administrative Trustees shall be given in writing addressed
(until another address is published by the Trust) as follows: (a) with respect
to the Property Trustee, to Bank One Trust Company, National Association, Bank
One Plaza, Suite IL1-0126, Chicago, Illinois 60670-0126, Attention: Corporate
Trust Services Division; (b) with respect to the Delaware Trustee, to Bank One
Delaware, Inc., Three Christina Center, 201 North Walnut Street, Wilmington,
Delaware 19801, Attention: Legal Department/First USA; and (c) with respect to
the Administrative Trustees, to them at c/o ACE Limited, The ACE Building, 30
Woodbourne Avenue, Hamilton, HM08, Bermuda, Attention: General Counsel,
facsimile no.: 441-296-7799, marked "Attention Administrative Trustees of ACE
Capital Trust I." Such notice, demand or other communication to or upon the
Trust or the Property Trustee shall be deemed to have been sufficiently given or
made only upon actual receipt of the writing by the Trust or the Property
Trustee.

Section 10.9  Agreement not to Petition.

     Each of the Trustees and the Depositor agree for the benefit of the
Securityholders that, until at least one year and one day after the Trust has
been dissolved in accordance with Article IX, they shall not file, or join in
the filing of, a petition against the Trust under any bankruptcy, insolvency,
reorganization or other similar law (including, without limitation, the United
States Bankruptcy Code) (collectively, "Bankruptcy Laws") or otherwise join in
the commencement of any proceeding against the Trust under any Bankruptcy Law.
In the event the Depositor takes action in violation of this Section 10.9, the
Property Trustee agrees, for the benefit of Securityholders, that at the expense
of the Depositor, it shall file an answer with the bankruptcy court or otherwise
properly contest the filing of such petition by the Depositor against the Trust
or the commencement of such action and raise the defense that the Depositor has
agreed in writing not to take such action and should be stopped and precluded
therefrom and such other defenses, if any, as counsel for the Trustee or the
Trust may assert.  The provisions of this Section 10.9 shall survive the
termination of this Trust Agreement.

Section 10.10  Trust Indenture Act; Conflict with Trust Indenture Act.

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

     (b) The Property Trustee shall be the only Trustee which is a trustee for
the purposes of the

                                       57
<PAGE>

Trust Indenture Act.

     (c) If any provision hereof limits, qualifies or conflicts with another
provision hereof which is required to be included in this Trust Agreement by any
of the provisions of the Trust Indenture Act, such required provision shall
control. If any provision of this Trust Agreement modifies or excludes any
provision of the Trust Indenture Act which may be so modified or excluded, the
latter provision shall be deemed to apply to this Trust Agreement as so modified
or excluded, as the case may be.

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

                                       58
<PAGE>

Section 10.11  Acceptance of Terms of Trust Agreement, Guarantee and Indenture.

       THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST THEREIN BY
OR ON BEHALF OF A SECURITYHOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE
OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL
ACCEPTANCE BY THE SECURITYHOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN
SUCH TRUST SECURITY OF ALL THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT AND
AGREEMENT TO THE SUBORDINATION PROVISIONS AND OTHER TERMS OF THE GUARANTEE AND
THE INDENTURE, AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST, SUCH
SECURITYHOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS TRUST
AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST AND
SUCH SECURITYHOLDER AND SUCH OTHERS.

                         ACE INA HOLDINGS INC., as Depositor

                         By:
                            Name:
                            Title:

                         BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,
                         as Property Trustee

                         By:
                            Name:
                            Title:

                         BANK ONE DELAWARE, INC.,
                         as Delaware Trustee

                         By:
                            Name:
                            Title:

                         Robert A. Blee,
                         as Administrative Trustee

                         Christopher Z. Marshall,
                         as Administrative Trustee

                                       59
<PAGE>

                                                                     EXHIBIT A-1
                                                                     -----------

                              CERTIFICATE OF TRUST
                                       OF
                              ACE CAPITAL TRUST I

     This Certificate of Trust of ACE Capital Trust I (the "Trust"), dated as of
May 19, 1999, is being duly executed and filed by the undersigned, as trustees,
to form a business trust under the Delaware Business Trust Act (12 Del.C. (S)
3801. et seq.)

     1.  Name. The name of the business trust formed hereby is ACE Capital
Trust I.

     2.  Delaware Trustee.  The name and business address of the trustee of the
Trust with a principal place of business in the State of Delaware is Bank One
Delaware, Inc., Three Christina Centre, 201 North Walnut Street, Wilmington,
Delaware 19801.

     3.  Effective Date.  This Certificate of Trust shall be effective upon
filing with the Secretary of State of the State of Delaware.

     IN WITNESS WHEREOF, the undersigned being the trustees of the Trust, have
executed this Certificate of Trust as of the date first above written.

          THE FIRST NATIONAL BANK OF CHICAGO,
          not in its individual capacity but solely as trustee
          of the trust

          By:  _________________________________
          Name:
          Title:

          BANK ONE DELAWARE, INC., not in its
          individual capacity but solely as trustee of the
          Trust

          By:  _________________________________
          Name:
<PAGE>

          Title:

          _______________________________________
          ROBERT A. BLEE, not in his individual capacity
          but solely as trustee of the Trust

                                    A-1-61
<PAGE>

                                                                     EXHIBIT A-2
                                                                     -----------

                      ASSIGNMENT AND ASSUMPTION AGREEMENT
                                      AND
                             FIRST AMENDMENT TO THE
                               TRUST AGREEMENT OF
                              ACE CAPITAL TRUST I

     This Assignment and Assumption Agreement and First Amendment to the Trust
Agreement of ACE Capital Trust I (the "Trust"), dated as of August 5, 1999 (this
"Assignment and Amendment Agreement"), is made and entered into by and among ACE
Limited, a Cayman Islands company limited by shares, as the original depositor
(the "Original Depositor"), ACE INA Holdings Inc., a Delaware corporation, as
the substitute depositor (the "Substitute Depositor"), The First National Bank
of Chicago, a national banking association, as property trustee (the "Property
Trustee"), Bank One Delaware, Inc., a Delaware corporation, as trustee (the
"Delaware Trustee"), and Robert A. Blee, an individual, as trustee (the
"Administrative Trustee") (the Property Trustee, the Delaware Trustee and the
Administrative Trustee being hereinafter collectively referred to as the
"Trustees").

                                   WITNESSETH
                                   ----------

     WHEREAS, the Trust is a Delaware statutory business trust that was created
under Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. (S) 3801, et seq.
pursuant to (i) the Trust Agreement of the Trust, dated as of May 19, 1999 (the
"Trust Agreement"), and (ii) the Certificate of the Trust of the Trust, dated as
of May 19, 1999, as filed with the office of the Secretary of State of the State
of Delaware on May 19, 1999;

     WHEREAS, the Original Depositor, as the depositor under the Trust
Agreement, desires to assign, transfer and convey all of its right, title and
interest in the Trust (the "Depositor's Interest") to the Substitute Depositor,
and the Original Depositor desires to cease to be the depositor of the Trust;

     WHEREAS, the Substitute Depositor desires to acquire the Depositor's
Interest currently held by the Original Depositor, and the Substitute Depositor
desires to become the depositor of the Trust; and

     WHEREAS, the undersigned, being the Original Depositor, the Substitute
Depositor and all the Trustees of the Trust, to accomplish the foregoing, desire
to amend the Trust Agreement in the manner set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises and obligations
contained herein, the parties, intending to be legally bound, hereby agree as
follows:

     1.  Assignment.  Notwithstanding any provision in the Trust Agreement to
the contrary, for value received, the receipt and sufficiency of which are
hereby acknowledged, upon the
<PAGE>

execution of this Assignment and Amendment Agreement by the parties hereto, the
Original Depositor does hereby assign, transfer and convey the Depositor's
Interest to the Substitute Depositor.

     2.  Substitution.  Notwithstanding any provision in the Trust Agreement to
the contrary, contemporaneously with the assignment described in Section 1 of
this Assignment and Amendment Agreement, the Substitute Depositor shall become
the depositor of the Trust and shall have all rights, powers and obligations of
the Depositor (as such term is used in the Trust Agreement) under the Trust
Agreement.

     3.  Cessation.  Notwithstanding any provision in the Trust Agreement to the
contrary, immediately following the Substitute Depositor becoming the depositor
of the Trust, the Original Depositor shall cease to be the depositor of the
Trust, and shall thereupon cease to have any right, obligation or power as the
depositor of the Trust.

     4.  Continuation of the Trust.  The parties hereto agree that (i) the
assignment of the Depositor's Interest, the Substitute Depositor becoming the
depositor of the Trust and the Original Depositor's ceasing to be the depositor
of the Trust shall not dissolve the Trust and (ii) the business of the Trust
shall continue without dissolution.

     5.  Successors and Assigns.  This Assignment and Amendment Agreement shall
be binding upon, and shall enure to the benefit of, the parties hereto and their
respective successors and assigns.

     6.  Full Force and Effect.  Except to the extent modified hereby, the Trust
Agreement shall remain in full force and effect.

     7.  Counterparts.  This Assignment and Amendment Agreement may be executed
in counterparts, all of which together shall constitute one agreement binding on
all parties hereto, notwithstanding that all such parties are not signatories to
the original or same counterpart.

     8.  Governing Law.  This Assignment and Amendment Agreement shall be
interpreted in accordance with the laws of the State of Delaware (without regard
to conflict of laws principles), all rights and remedies being governed by such
laws.

     9.  Effectiveness of Amendment.  This Assignment and Amendment Agreement
shall become a legally effective and binding instrument as of the date hereof.

                            [SIGNATURE PAGES FOLLOW]

                                    A-2-63
<PAGE>

     IN WITNESS WHEREOF, the undersigned have executed this Assignment and
Amendment Agreement as of the day and year first above written.

                             ACE LIMITED,
                             as Original Depositor

                             By:  __________________________________
                             Name:
                             Title:

                             ACE INA HOLDINGS INC.,
                             as Substitute Depositor

                             By:  __________________________________
                             Name:
                             Title:

                             THE FIRST NATIONAL BANK OF CHICAGO,
                             not in its individual capacity but solely as
                             trustee of the Trust

                             By:  _________________________________
                             Name:
                             Title:

                             BANK ONE DELAWARE, INC.,
                             not in its individual capacity but solely as
                             trustee of

                             the Trust

                             By:  ________________________________
                             Name:
                             Title:

                      ____________________________________
                     ROBERT A. BLEE, not in his individual
                     capacity but solely as trustee of the Trust

                                    A-2-64
<PAGE>

                                                                       EXHIBIT B

                    FORM OF CERTIFICATE DEPOSITORY AGREEMENT
            PERTAINING TO THE TRUST ORIGINATED PREFERRED SECURITIES

The Depository Trust Company
55 Water Street, 49th Floor
New York, New York 10041-0099

Attention:  John C. Drennan
            General Counsel's Officer

Re:  ACE Capital Trust I 8.875% Trust Originated Preferred Securities

Ladies and Gentlemen:

     The purpose of this letter is to set forth certain matters relating to the
issuance and deposit with The Depository Trust Company ("DTC") of the ACE
Capital Trust I 8.875% Trust Originated Preferred Securities (the "Preferred
Securities") of ACE Capital Trust I, a Delaware business trust (the "Issuer"),
governed by an Amended and Restated Trust Agreement among ACE INA Holdings Inc.
("ACE INA"), Bank One Trust Company, National Association, as Property Trustee,
Bank One Delaware, Inc., as Delaware Trustee, and the Administrative Trustees
named therein (the "Trust Agreement").  The payment of distributions on the
Preferred Securities, and payments due upon liquidation of the Issuer or
redemption of the Preferred Securities, to the extent the Issuer has funds
available for the payment thereof are guaranteed by ACE Limited, a Cayman
Islands company and the parent of ACE INA ("ACE"), to the extent set forth in
the Preferred Securities Guarantee Agreement, dated December 20, 1999, between
ACE and Bank One Trust Company, National Association, as Guarantee Trustee.  ACE
INA, ACE and the Issuer propose to sell the Preferred Securities to certain
Underwriters (the "Underwriters") pursuant to an Underwriting Agreement, dated
December 15, 1999, by and among the Underwriters, the Issuer, ACE INA and ACE
and the Underwriters wish to take delivery of the Preferred Securities through
DTC.  Bank One Trust Company, National Association is acting as transfer agent
and registrar with respect to the Preferred Securities (the "Transfer Agent and
Registrar").

     To induce DTC to accept the Preferred Securities as eligible for deposit at
DTC, and to act in accordance with DTC's rules with respect to the Preferred
Securities, the Issuer, the Transfer Agent and Registrar and DTC agree among
each other as follows:

     (1) Prior to the closing of the sale of the Preferred Securities to the
Underwrites, which is expected to occur on or about December 20, 1999 there
shall be deposited with DTC one or more global certificates (individually and
collectively, the "Global Certificate") registered in the name of DTC's
Preferred Securities nominee, Cede & Co., representing an aggregate of Preferred
Securities and bearing the following legend:
<PAGE>

     Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

     (2) The Trust Agreement provides for the voting by holders of the Preferred
Securities under certain limited circumstances. The Issuer shall establish a
record date for such purposes and shall, to the extent possible, give DTC notice
of such record date not less than 15 calendar days in advance of such record
date.

     (3) In the event of a stock split, conversion, recapitalization,
reorganization or any other similar transaction resulting in the cancellation of
all or any part of the Preferred Securities outstanding, the Issuer or the
Transfer Agent and Registrar shall send DTC a notice of such event at least 5
business days prior to the effective date of such event.

     (4) In the event of distribution on, or an offering or issuance of rights
with respect to, the Preferred Securities outstanding, the Issuer or the
Transfer Agent and Registrar shall send DTC a notice specifying:  (a) the amount
of and conditions, if any, applicable to the payment of any such distribution or
any such offering or issuance of rights; (b) any applicable expiration or
deadline date, or any date by which any action on the part of the holders of
Preferred Securities is required; and (c) the date any required notice is to be
mailed by or on behalf of the Issuer to holders of Preferred Securities or
published by or on behalf of the Issuer (whether by mail or publication, the
"Publication Date").  Such notice shall be sent to DTC by a secure means (e.g.,
legible telecopy, registered or certified mail, overnight delivery) in a timely
manner designed to assure that such notice is in DTC's possession no later than
the close of business on the business day before the Publication Date.  The
Issuer or the Transfer Agent and Registrar will forward such notice either in a
separate secure transmission for each CUSIP number or in a secure transmission
of multiple CUSIP numbers (if applicable) that includes a manifest or list of
each CUSIP number submitted in that transmission.  (The party sending such
notice shall have a method to verify subsequently the use of such means and the
timeliness of such notice.)  The Publication Date shall be not less than 30
calendar days nor more than 60 calendar days prior to the payment of any such
distribution or any such offering or issuance of rights with respect to the
Preferred Securities.  After establishing the amount of payment to be made on
the Preferred Securities, the Issuer or the Transfer Agent and Registrar will
notify DTC's Dividend Department of such payment 5 business days prior to
payment date.  Notices to DTC's Dividend Department by telecopy shall be sent to
(212) 709-1723.  Such notices by mail or by any other means shall be sent to:

     Manager, Announcements
     Dividend Department
     The Depository Trust Company

                                     B-66
<PAGE>

     7 Hanover Square, 23rd Floor
     New York, New York 10004-2695.

     The Issuer or the Transfer Agent and Registrar shall confirm DTC's receipt
     of such telecopy by telephoning the Dividend Department at (212) 709-1270.

     (5) In the event of a redemption by the Issuer of the Preferred Securities,
notice specifying the terms of the redemption and the Publication Date of such
notice shall be sent by the Issuer or the Transfer Agent and Registrar to DTC
not less than 30 calendar days prior to such event by a secure means in the
manner set forth in paragraph 4. Such redemption notice shall be sent to DTC's
Call Notification Department at (516) 227-4164 or (516) 227-4190, and receipt of
such notice shall be confirmed by telephoning (516) 227-4070. Notice by mail or
by any other means shall be sent to:

     Call Notification Department
     The Depository Trust Company
     711 Stewart Avenue
     Garden City, New York 11530-4719.

     (6) In the event of any invitation to tender the Preferred Securities,
notice specifying the terms of the tender and the Publication Date of such
notice shall be sent by the Issuer or the Transfer Agent and Registrar to DTC by
a secure means and in a timely manner as described in paragraph 4. Notices to
DTC pursuant to this paragraph and notices of other corporate actions (including
mandatory tenders, exchanges and capital changes) shall be sent, unless
notification to another department is expressly provided for herein, by telecopy
to DTC's Reorganization Department at (212) 709-1093 or (212) 709-1094 and
receipt of such notice shall be confirmed by telephoning (212) 709-6884, or by
mail or any other means to:

     Manager, Reorganization Department
     Reorganization Window
     The Depository Trust Company
     7 Hanover Square, 23rd Floor
     New York, New York 10004-2695.

     (7) All notices and payment advices sent to DTC shall contain the CUSIP
number or numbers of the Preferred Securities and the accompanying designation
of the Preferred Securities, which, as of the date of this letter, is ACE
Capital Trust I 8.875% Trust Originated Preferred Securities.

     (8) Distribution payments or other cash payments with respect to the
Preferred Securities evidenced by the Global Certificate shall be received by
Cede & Co., as nominee of DTC, or its registered assigns in next day funds on
each payment date (or in accordance with existing arrangements between the
Issuer or the Transfer Agent and Registrar and DTC). Such payments shall be made
payable to the order of Cede & Co., and shall be addressed as follows:

     NDFS Redemption Department
     The Depository Trust Company

                                     B-67
<PAGE>

     7 Hanover Square, 23rd Floor
     New York, New York 10004-2695.

     (9) DTC may by prior written notice direct the Issuer and the Transfer
Agent and Registrar to use any other telecopy number or address of DTC as the
number or address to which notices or payments may be sent.

     (10) In the event of a conversion, redemption, or any other similar
transaction (e.g., tender made and accepted in response to the Issuer's or the
Transfer Agent and Registrar's invitation) necessitating a reduction in the
aggregate number of Preferred Securities outstanding evidenced by Global
Certificates, DTC, in its discretion: (a) may request the Issuer or the Transfer
Agent and Registrar to issue and countersign a new Global Certificate; or (b)
may make an appropriate notation on the Global Certificate indicating the date
and amount of such reduction.

     (11) DTC may discontinue its services as a securities depositary with
respect to the Preferred Securities at any time by giving at least 90 days'
prior written notice to the Issuer and the Transfer Agent and Registrar (at
which time DTC will confirm with the Issuer or the Transfer Agent and Registrar
the aggregate number of Preferred Securities deposited with it) and discharging
its responsibilities with respect thereto under applicable law. Under such
circumstances, the Issuer may determine to make alternative arrangements for
book-entry settlement for the Preferred Securities, make available one or more
separate global certificates evidencing Preferred Securities to any Participant
having Preferred Securities credited to its DTC account, or issue definitive
Preferred Securities to the beneficial holders thereof, and in any such case,
DTC agrees to cooperate fully with the Issuer and the Transfer Agent and
Registrar, and to return the Global Certificate duly endorsed for transfer as
directed by the Issuer or the Transfer Agent and Registrar, together with any
other documents of transfer reasonably requested by the Issuer of the Transfer
Agent and Registrar.

     (12) In the event that the Issuer determines that beneficial owners of
Preferred Securities shall be able to obtain definitive Preferred Securities,
the Issuer or the Transfer Agent and Registrar shall notify DTC of the
availability of certificates. In such event, the Issuer or the Transfer Agent
and Registrar shall issue, transfer and exchange certificates in appropriate
amounts, as required by DTC and others, and DTC agrees to cooperate fully with
the Issuer and the Transfer Agent and Registrar and to return the Global
Certificate, duly endorsed for transfer as directed by the Issuer or the
Transfer Agent and Registrar, together with any other documents of transfer
reasonably requested by the Issuer or the Transfer Agent and Registrar.

                                     B-68
<PAGE>

     (13) This letter may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument. Nothing
herein shall be deemed to require the Transfer Agent and Registrar to advance
funds on behalf of ACE Capital Trust I.

                              Very truly yours,

                              ACE CAPITAL TRUST I,
                              as Issuer

                              By:
                                 Name:
                                 Administrative Trustee

                              BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,
                              as Transfer Agent and Registrar

                              By:
                                 Name:
                                 Title:

Received and Accepted:

THE DEPOSITORY TRUST COMPANY

By:________________________________
   Authorized Officer

                                     B-69
<PAGE>

                                                                       EXHIBIT C

                     [FORM OF COMMON SECURITY CERTIFICATE]

           THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT AS PROVIDED IN
                     THE TRUST AGREEMENT (AS DEFINED BELOW)

Certificate Number                                   Number of Common Securities
CS-____________

                    Certificate Evidencing Common Securities

                                       of

                              ACE CAPITAL TRUST I

                            ___ % Common Securities
                  (liquidation amount $25 per Common Security)

     ACE CAPITAL TRUST I, a statutory business trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that ACE INA Holdings Inc.
(the "Holder") is the registered owner of ___________________ (_________) common
securities of the Trust representing undivided beneficial interests in the
assets of the Trust designated the ______% Common Securities (liquidation amount
$25 per Common Security) (the "Common Securities").  In accordance with section
5.10 of the Trust Agreement (as defined below), the Common Securities are not
transferable and any attempted transfer hereof shall be void.  The designations,
rights, privileges, restrictions, preferences and other terms and provisions of
the Common Securities are set forth in, and this certificate and the Common
Securities represented hereby are issued and shall in all respects be subject to
the terms and provisions of the Amended and Restated Trust Agreement of the
Trust, dated as of December __, 1999, as the same may be amended from time to
time (the "Trust Agreement"), including the designation of the terms of the
Common Securities as set forth therein.  Capitalized terms used but not defined
herein shall have the meaning given them in the Trust Agreement.  The Holder is
entitled to the benefit of the Common Securities Guarantee Agreement, dated as
of December __, 1999 (the "Common Securities Guarantee").  The Sponsor will
provide a copy of the Trust Agreement and the Common Securities Guarantee to the
Holder without charge upon written request to the Trust at its principal place
of business or registered office.

     Upon receipt of this certificate, the Holder is bound by the Trust
Agreement and is entitled to the benefits thereunder and to the benefits of the
Common Securities Guarantee to the extent provided therein.

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

ownership in the Debentures.

                                     C-71
<PAGE>

     IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has
executed this certificate this ___ day of December, 1999.

                                      ACE CAPITAL TRUST I

                                      By: _________________________
                                          Name:
                                          Administrative Trustee

                                     C-72
<PAGE>

                         [FORM OF REVERSE OF SECURITY]

     Distributions on each Common Security will be payable at a rate per annum
of ___% (the "Distribution Rate") of the Liquidation Amount of $25 per Common
Security, such rate being the rate of interest payable on the Debentures to be
held by the Property Trustee.  Distributions in arrears for more than one
quarterly period will bear additional distributions thereon compounded quarterly
at the applicable periodic Distribution Rate (to the extent permitted by
applicable law).  The term "Distributions", as used herein, includes any such
additional distributions unless otherwise stated.  A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Property Trustee and to the extent the Property Trustee has funds legally
available therefor.

     Distributions on the Common Securities will be cumulative, will accumulate
from the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from December __, 1999, to but excluding the
related Distribution Date (as defined herein) or any date fixed for redemption
(a "Redemption Date"), and will be payable quarterly in arrears on ___________,
___________, ___________ and ____________ of each year, commencing ___________,
2000 (each, a "Distribution Date"), except as otherwise described below and in
the Trust Agreement.  The amount of Distributions payable for any Distribution
Period will be computed on the basis of a 360-day year consisting of twelve 30-
day months.  "Distribution Period" means the period from and including the
immediately preceding Distribution Date (or December __, 1999, in the case of
the first Distribution Period) to but excluding the applicable Distribution Date
or Redemption Date.  If a Distribution Date is not a Business Day, then such
Distribution Date and the first day of the Distribution Period commencing on
such Distribution Date will be the next succeeding Business Day and no interest
or other payment in respect of any such delay shall accumulate for the period to
but excluding such Business Day.  However, if the next succeeding Business Day
is in the next calendar year, payment of Distributions will be made on the
immediately preceding Business Day.

     As long as no event of default has occurred and is continuing under the
Indenture, the Debenture Issuer has the right under the Indenture to defer
payments of interest by extending the interest payment period at any time and
from time to time on the Debentures for a period not exceeding 20 consecutive
quarterly periods (each, an "Extension Period"), provided that an Extension
Period must end on an interest payment date for the Debentures and may not
extend beyond the stated maturity date or Redemption Date for the Debentures.
As a consequence of such deferral, Distributions will also be deferred.  Despite
such deferral, quarterly Distributions will continue to accumulate with
additional interest thereon (to the extent permitted by applicable law but not
at a rate greater than the rate at which interest is then accruing on the
Debentures) at the Distribution Rate then in effect compounded quarterly during
any such Extension Period.  Prior to the termination of any such Extension
Period, the Debenture Issuer may further defer payments of interest by further
extending such Extension Period; provided that such Extension Period, together
with all such previous and further extensions, may not exceed 20 consecutive
quarterly periods, must end on an interest payment date for the Debentures and
may not extend beyond the maturity date or Redemption Date of the Debentures.
At the end of the Extension Period, all accumulated and unpaid Distributions
(but only to the extent payments are made in

                                     C-73
<PAGE>

respect of the Debentures held by the Property Trustee and to the extent the
Property Trustee has funds legally available therefor) will be payable to the
Holders as they appear on the books and records of the Trust on the record date
immediately preceding the end of the Extension Period. Upon the termination of
any Extension Period and the payment of all amounts then due, the Debenture
Issuer may commence a new Extension Period, subject to the foregoing
requirements.

     The Common Securities shall be redeemable as provided in the Trust
Agreement.

                                     C-74
<PAGE>

                                                                       EXHIBIT D

                FORM OF AGREEMENT AS TO EXPENSES AND LIABILITIES

     AGREEMENT dated as of December 20, 1999, between ACE Limited, a Cayman
Islands company ("ACE"), and ACE Capital Trust I, a Delaware statutory business
trust (the "Trust").

     WHEREAS, the Trust intends to issue its Common Securities (the "Common
Securities") to and receive Debentures from ACE INA Holdings Inc., a Delaware
corporation and a wholly-owned subsidiary of ACE ("ACE INA"), and to issue and
sell 8.875% Trust Originated Preferred Securities (the "Preferred Securities")
with such powers, preferences and special rights and restrictions as are set
forth in the Amended and Restated Trust Agreement of the Trust dated as of
December 20, 1999, as the same may be amended from time to time (the "Trust
Agreement");

     WHEREAS, ACE INA will directly or indirectly own all of the Common
Securities of the Trust and will issue the Debentures;

     WHEREAS, ACE will guarantee the obligations of ACE INA under the Debentures
and has agreed to guarantee certain expenses and liabilities of the Trust as
provided herein;

     NOW, THEREFORE, in consideration of the purchase by each holder of the
Preferred Securities, which purchase ACE hereby agrees shall benefit ACE and
which purchase ACE acknowledges will be made in reliance upon the execution and
delivery of this Agreement, ACE and Trust hereby agree as follows:

                                   ARTICLE I

     Section 1.1.  Guarantee by ACE.

     Subject to the terms and conditions hereof, ACE hereby irrevocably and
unconditionally guarantees to each person or entity to whom the Trust is now or
hereafter becomes indebted or liable (the "Beneficiaries") the full payment,
when and as due, of any and all Obligations (as hereinafter defined) to such
Beneficiaries.  As used herein, "Obligations" means any costs, expenses or
liabilities of the Trust, other than obligations of the Trust to pay to holders
of any Preferred Securities or other similar interests in the Trust the amounts
due such holders pursuant to the terms of the Preferred Securities or such other
similar interests, as the case may be.  This Agreement is intended to be for the
benefit of, and to be enforceable by, all such Beneficiaries, whether or not
such Beneficiaries have received notice hereof.

     Section 1.2.  Term of Agreement.

     This Agreement shall terminate and be of no further force and effect upon
the later of (a) the date on which full payment has been made of all amounts
payable to all holders of all the Preferred Securities (whether upon redemption,
liquidation, exchange or otherwise) and (b) the date one which there are no
Beneficiaries remaining; provided, however, that this Agreement shall continue
to be effective or shall be reinstated, as the case may be, if at any time any
holder

                                     D-75
<PAGE>

of Preferred Securities or any Beneficiary must restore payment of any sums paid
under the Preferred Securities, under any Obligation, under the Guarantee
Agreement dated the date hereof between ACE, in its capacity as guarantor with
respect to the Preferred Securities, and Bank One Trust Company, National
Association, as guarantee trustee, or under this Agreement for any reason
whatsoever. This Agreement is continuing, irrevocable, unconditional and
absolute.

     Section 1.3.  Waiver of Notice.

     ACE hereby waives notice of acceptance of this Agreement and of any
Obligation to which it applies or may apply, and ACE hereby waives presentment,
demand for payment, protest, notices of nonpayment, notice of dishonor, notice
of redemption and all other notices and demands.

     Section 1.4.  No Impairment.

     The obligations, covenants, agreements and duties of ACE under this
Agreement shall in no way be affected or impaired by reason of the happening
from time to time of any of the following:

     (a) the extension of time for the payment by the Trust of all or any
     portion of the Obligations or for the performance of any other obligation
     under, arising out of, or in connection with, the Obligations;

     (b) any failure, omission, delay or lack of diligence on the part of the
     Beneficiaries to enforce, assert or exercise any right, privilege, power or
     remedy conferred on the Beneficiaries with respect to the Obligations or
     any action on the part of the Trust granting indulgence or extension of any
     kind;

     (c) the voluntary or involuntary liquidation, dissolution, sale of any
     collateral, receivership, insolvency, bankruptcy, assignment for the
     benefit of creditors, reorganization, arrangement composition or
     readjustment of debt of, or other similar proceedings affecting, the Trust
     or any of the assets of the Trust.

     There shall be no obligation of the Beneficiaries to give notice to, or
obtain the consent of, ACE with respect to the happening of any of the
foregoing.

     Section 1.5.  Enforcement.

     A Beneficiary may enforce this Agreement directly against ACE, and ACE
waives any right or remedy to require that any action be brought against the
Trust or any other person or entity before proceeding against ACE.

     Section 1.6.  Subrogation.

     ACE shall be subrogated to all (if any) rights of the Trust in respect of
any amounts paid to the Beneficiaries by ACE under this Agreement; provided,
however, that ACE shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise

                                     D-76
<PAGE>

any rights which it may acquire by way of subrogation or any indemnity,
reimbursement or other agreement, in all cases as a result of payment under this
Agreement, if, at the time of any such payment, any amounts are due and unpaid
under this Agreement.

                                  ARTICLE II.

     Section 2.1.  Binding Effect.

     All guarantees and agreements contained in this Agreement shall bind the
successors, assigns, receivers, trustees and representatives of ACE and shall
inure to the benefit of the Beneficiaries.

     Section 2.2.  Amendment.

     So long as there remains any Beneficiary or any Preferred Securities are
outstanding, this Agreement shall not be modified or amended in any manner
adverse to such Beneficiary or to the holders of the Preferred Securities.

     Section 2.3.  Notices.

     Any notice, request or other communication required or permitted to be
given hereunder shall be given in writing by delivering the same against receipt
therefor by facsimile transmission (confirmed by mail), telex or by registered
or certified mail, addressed as follows (and if so given, shall be deemed given
when mailed or upon receipt of an answer-back, if sent by telex):

     ACE Capital Trust I
     c/o ACE USA Inc.
     Six Concourse Parkway
     Suite 2500
     Atlanta, Georgia 30328
     Facsimile:
     Attention:

     ACE Limited
     The ACE Building
     30 Woodbourne Avenue
     Hamilton 08
     Bermuda
     Facsimile:
     Attention:

                                     D-77
<PAGE>

     Section 2.4  Governing Law.

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

     THIS AGREEMENT is executed as of the day and year first above written.

                              ACE LIMITED

                              By:
                                 Name:
                                 Title:

                              ACE CAPITAL TRUST I

                              By:
                                 Name:
                                 Title:

                                     D-78
<PAGE>

                                                                       EXHIBIT E

                    [FORM OF PREFERRED SECURITY CERTIFICATE]

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

     UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE CLEARING AGENCY TO ACE CAPITAL TRUST I OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE CLEARING AGENCY AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

                                     E-79
<PAGE>

Certificate Number                                Number of Preferred Securities
PS-____________
CUSIP NO. __________

                  Certificate Evidencing Preferred Securities

                                       of

                              ACE CAPITAL TRUST I

                   ___% Trust Originated Preferred Securities
                (liquidation amount $25 per Preferred Security)

     ACE CAPITAL TRUST I, a statutory business trust organized under the laws of
the State of Delaware (the "Trust"), hereby certifies that Cede & Co. (the
"Holder") is the registered owner of __________ (__________) preferred
securities of the Trust representing undivided beneficial interests in the
assets of the Trust designated the ACE Capital Trust I ___% Trust Originated
Preferred Securities (liquidation amount $25 per Preferred Security) (the
"Preferred Securities").  The Preferred Securities are transferable on the books
and records of the Trust, in person or by a duly authorized attorney, upon
surrender of this certificate duly endorsed and in proper form for transfer as
provided in Section 5.4 of the Trust Agreement (as defined below).

     The designations, rights, privileges, restrictions, preferences and other
terms and provisions of the Preferred Securities represented hereby are set
forth in, and this certificate and the Preferred Securities represented hereby
are issued and shall in all respects be subject to the terms and provisions of
the Amended and Restated Trust Agreement of the Trust, dated as of December __,
1999, as the same may be amended from time to time (the "Trust Agreement"),
including the designation of the terms of the Preferred Securities as set forth
therein.  Capitalized terms used but not defined herein shall have the meaning
given them in the Trust Agreement.  The Holder is entitled to the benefit of the
Preferred Securities Guarantee Agreement entered into by ACE Limited, a Cayman
Islands company, and Bank One Trust Company, National Association, as guarantee
trustee, dated as of December __, 1999 (the "Preferred Securities Guarantee"),
to the extent provided therein.  The Trust will provide a copy of the Trust
Agreement and the Preferred Securities Guarantee to the Holder without charge
upon written request to the Trust at its principal place of business or
registered office.

     Upon receipt of this certificate, the Holder is bound by the Trust
Agreement and is entitled to the benefits thereunder and to the benefits of the
Preferred Securities Guarantee to the extent provided therein.

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

                                     E-80
<PAGE>

     IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has
executed this certificate this ___ day of December, 1999.

                                       ACE CAPITAL TRUST I

                                       By: ________________________
                                           Name:
                                           Administrative Trustee

                                     E-81
<PAGE>

                         [FORM OF REVERSE OF SECURITY]

     Distributions on each Preferred Security will be payable at a rate per
annum of ____ % (the "Distribution Rate") of the Liquidation Amount of $25 per
Preferred Security, such rate being the rate of interest payable on the
Debentures to be held by the Property Trustee.  Distributions in arrears for
more than one quarterly period will bear additional distributions thereon
compounded quarterly at the applicable periodic Distribution Rate (to the extent
permitted by applicable law).  The term "Distributions," as used herein,
includes any such additional distributions unless otherwise stated.  A
Distribution is payable only to the extent that payments are made in respect of
the Debentures held by the Property Trustee and to the extent the Property
Trustee has funds legally available therefor.

     Distributions on the Preferred Securities will be cumulative, will
accumulate from the most recent date to which Distributions have been paid or,
if no Distributions have been paid, from December __, 1999, to but excluding the
related Distribution Date (as defined herein) or any date fixed for redemption
(a "Redemption Date") and will be payable quarterly in arrears on ________,
_________, ________ and _________ of each year, commencing ___________, 2000
(each, a "Distribution Date"), except as otherwise described below and in the
Trust Agreement.  The amount of Distributions payable for any Distribution
Period will be computed on the basis of a 360-day year consisting of twelve 30-
day months.  "Distribution Period" means the period from and including the
immediately preceding Distribution Date (or December __, 1999, in the case of
the first Distribution Period) to but excluding the applicable Distribution Date
or Redemption Date. If a Distribution Date is not a Business Day, then such
Distribution Date and the first day of the Distribution Period commencing on
such Distribution Date will be the next succeeding Business Day and no interest
or other payment in respect of such delay shall accumulate for the period to but
excluding such Business Day.  However, if the next succeeding Business Day is in
the next calendar year, payment of the Distributions will be made on the
immediately preceding Business Day.

     As long as no event of default has occurred and is continuing under the
Indenture, the Debenture Issuer has the right under the Indenture to defer
payments of interest by extending the interest payment period at any time and
from time to time on the Debentures for a period not exceeding 20 consecutive
quarterly periods (each, an "Extension Period"), provided that an Extension
Period must end on an interest payment date for the Debentures and may not
extend beyond the stated maturity date or Redemption Date for the Debentures.
As a consequence of such deferral, Distributions will also be deferred.  Despite
such deferral, quarterly Distributions will continue to accumulate with
additional interest thereon (to the extent permitted by applicable law but not
at a rate greater than the rate at which interest is then accruing on the
Debentures) at the Distribution Rate then in effect compounded quarterly during
any such Extension Period.  Prior to the termination of any such Extension
Period, the Debenture Issuer may further defer payments of interest by further
extending such Extension Period; provided that such Extension Period, together
with all such previous and further extensions, may not exceed 20 consecutive
quarterly periods, must end on an interest payment date for the Debentures and
may not extend beyond the maturity date or Redemption Date of the Debentures.
At the end of the Extension Period, all accumulated and unpaid Distributions
(but only to the extent payments are made in

                                     E-82
<PAGE>

respect of the Debentures held by the Property Trustee and to the extent the
Property Trustee has funds available therefor) will be payable to the Holders as
they appear on the books and records of the Trust on the record date immediately
preceding the end of the Extension Period. Upon the termination of any Extension
Period (or any extension period thereof) and the payment of all amounts then
due, the Debenture Issuer may commence a new Extension Period, subject to the
foregoing requirements.

     The Preferred Securities shall be redeemable as provided in the Trust
Agreement.

                                     E-83
<PAGE>

                                   ASSIGNMENT

                             _____________________

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

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

                   (Insert address and zip code of assignee)

and irrevocably appoints

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

Date: _______________________

Signature: __________________
(Sign exactly as your name appears on the other side of this Preferred Security
Certificate)

Signature Guarantee**:  ___________________________________

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

                                     E-84<PAGE>
                                                                   Exhibit 10.41

                             ACE INA HOLDINGS INC.,
                                                       Issuer

                                      and

                                  ACE LIMITED,
                                                       Guarantor

                                       to

                            BANK ONE TRUST COMPANY,
                             NATIONAL ASSOCIATION,
                                                       Trustee

                                _______________

                                   INDENTURE
                                _______________

                          Dated as of December 1, 1999

                          Subordinated Debt Securities
<PAGE>

                        Reconciliation and tie between
            Trust Indenture Act of 1939 (the "Trust Indenture Act")
                                 and Indenture

<TABLE>
<CAPTION>
Trust Indenture
Act Section                                                    Indenture Section
---------------                                                -----------------
<S>                                                            <C>
 (S)310(a)(1)................................................................6.7
  (a)(2).....................................................................6.7
  (b)........................................................................6.8
 (S)312(a)...................................................................7.1
  (b)........................................................................7.2
  (c)........................................................................7.2
 (S)313(a)...................................................................7.3
  (b)(2).....................................................................7.3
  (c)........................................................................7.3
  (d)........................................................................7.3
 (S)314(a)...................................................................7.4
  (c)(1).....................................................................1.2
  (c)(2).....................................................................1.2
  (e)........................................................................1.2
  (f)........................................................................1.2
 (S)316(a) (last sentence)...................................................1.1
  (a)(1)(A)............................................................5.2, 5.12
  (a)(1)(B).................................................................5.13
  (b)........................................................................5.8
 (S)317(a)(1)................................................................5.3
  (a)(2).....................................................................5.4
  (b).......................................................................10.3
 (S)318(a)..................................................................10.8
</TABLE>
---------------
Note:  This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.Table of Contents

<PAGE>

                              Table of Contents

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>           <C>                                                           <C>
                                   ARTICLE 1
            DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1.  Definitions.................................................... 2
              ACE Trusts..................................................... 2
              Act............................................................ 2
              Additional Amounts............................................. 2
              Additional Interest............................................ 2
              Additional Sums................................................ 3
              Additional Taxes............................................... 3
              Affiliate...................................................... 3
              Authenticating Agent........................................... 3
              Authorized Newspaper........................................... 3
              Authorized Officer............................................. 3
              Bearer Security................................................ 3
              Board of Directors............................................. 3
              Board Resolution............................................... 3
              Business Day................................................... 4
              Capital Stock.................................................. 4
              Capitalized Lease Obligation................................... 4
              Commission..................................................... 4
              Common Securities.............................................. 4
              Common Stock................................................... 4
              Company........................................................ 4
              Company Request and Company Order.............................. 4
              Company Senior Indebtedness.................................... 4
              Conversion Event............................................... 5
              Corporate Trust Office......................................... 5
              Corporation.................................................... 5
              Coupon......................................................... 5
              Currency....................................................... 5
              CUSIP number................................................... 5
              Defaulted Interest............................................. 5
              Direct Action.................................................. 5
              Distributions.................................................. 5
              Dollars or $................................................... 5
              Event of Default............................................... 5
              Extension Period............................................... 6
              Foreign Currency............................................... 6
              Government Obligations......................................... 6
              Guarantee...................................................... 6
              Guarantee Agreement............................................ 6
              Guarantor...................................................... 6
              Guarantor's Board of Directors................................. 6
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>           <C>                                                           <C>
              Guarantor's Board Resolution................................... 6
              Guarantor's Officer's Certificate.............................. 7
              Guarantor Request and Guarantor Order.......................... 7
              Guarantor Senior Indebtedness.................................. 7
              Holder......................................................... 7
              Indebtedness................................................... 7
              Indenture...................................................... 8
              Independent Public Accountants................................. 8
              Indexed Security............................................... 8
              Interest....................................................... 8
              Interest Payment Date.......................................... 8
              Investment Company Event....................................... 9
              Judgment Currency.............................................. 9
              Lien........................................................... 9
              Maturity....................................................... 9
              New York Banking Day........................................... 9
              1940 Act....................................................... 9
              Office or Agency............................................... 9
              Officer's Certificate.......................................... 9
              Opinion of Counsel............................................. 9
              Original Issue Discount Security............................... 9
              Outstanding................................................... 10
              Paying Agent.................................................. 11
              Person........................................................ 11
              Place of Payment.............................................. 11
              Preferred Securities.......................................... 11
              Preferred Securities Guarantee................................ 11
              Predecessor Security.......................................... 11
              Preferred Stock............................................... 11
              Property Trustee.............................................. 12
              Redemption Date............................................... 12
              Redemption Price.............................................. 12
              Registered Security........................................... 12
              Regular Record Date........................................... 12
              Required Currency............................................. 12
              Responsible Officer........................................... 12
              Security or Securities........................................ 12
              Security Register and Security Registrar...................... 12
              Senior Indebtedness........................................... 12
              Special Event................................................. 12
              Special Record Date........................................... 13
              Stated Maturity............................................... 13
              Subsidiary.................................................... 13
              Tax Event..................................................... 13
              Trust Agreement............................................... 13
              Trust Indenture Act........................................... 13
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>           <C>                                                          <C>
              Trust Securities.............................................. 14
              Trustee....................................................... 14
              United States................................................. 14
              United States Alien........................................... 14
              U.S. Depository or Depository................................. 14
              Vice President................................................ 14
Section 1.2.  Compliance Certificates and Opinions.......................... 14
Section 1.3.  Form of Documents Delivered to Trustee........................ 15
Section 1.4.  Acts of Holders............................................... 16
Section 1.5.  Notices, etc. to Trustee, Company and Guarantor............... 18
Section 1.6.  Notice to Holders of Securities; Waiver....................... 18
Section 1.7.  Language of Notices........................................... 19
Section 1.8.  Conflict with Trust Indenture Act............................. 19
Section 1.9.  Effect of Headings and Table of Contents...................... 20
Section 1.10. Successors and Assigns........................................ 20
Section 1.11. Separability Clause........................................... 20
Section 1.12. Holders of Preferred Securities as Third Party Beneficiaries.. 20
Section 1.13. Benefits of Indenture......................................... 20
Section 1.14. Governing Law................................................. 20
Section 1.15. Legal Holidays................................................ 21
Section 1.16. Counterparts.................................................. 21
Section 1.17. Judgment Currency............................................. 21
Section 1.18. No Security Interest Created.................................. 22
Section 1.19. Limitation on Individual Liability............................ 22
Section 1.20. Submission to Jurisdiction.................................... 22

                                   ARTICLE 2
                                SECURITIES FORMS

Section 2.1.  Forms Generally............................................... 23
Section 2.2.  Form of Trustee's Certificate of Authentication............... 24
Section 2.3.  Securities in Global Form..................................... 24

                                   ARTICLE 3
                                THE SECURITIES

Section 3.1.  Amount Unlimited; Issuable in Series.......................... 25
Section 3.2.  Currency; Denominations....................................... 29
Section 3.3.  Execution, Authentication, Delivery and Dating................ 30
Section 3.4.  Temporary Securities.......................................... 32
Section 3.5.  Registration, Transfer and Exchange........................... 32
Section 3.6.  Mutilated, Destroyed, Lost and Stolen Securities.............. 36
Section 3.7.  Payment of Interest and Certain Additional Amounts; Rights to
              Interest and Certain Additional Amounts Preserved............. 37
Section 3.8.  Persons Deemed Owners......................................... 39
Section 3.9.  Cancellation.................................................. 39
Section 3.10. Computation of Interest....................................... 40
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>           <C>                                                          <C>
Section 3.11. Extension of Interest Payment Period.......................... 40
Section 3.12. Right of Set-Off.............................................. 41
Section 3.13. Agreed Tax Treatment.......................................... 41
Section 3.14. Extension of Stated Maturity; Adjustment of Stated Maturity
              Upon an Exchange.............................................. 41

                                   ARTICLE 4
                    SATISFACTION AND DISCHARGE OF INDENTURE

Section 4.1.  Satisfaction and Discharge.................................... 42
Section 4.2.  Defeasance and Covenant Defeasance............................ 43
Section 4.3.  Application of Trust Money.................................... 48

                                   ARTICLE 5
                                    REMEDIES

Section 5.1.  Events of Default............................................. 48
Section 5.2.  Acceleration of Maturity; Rescission and Annulment............ 50
Section 5.3.  Collection of Indebtedness and Suits for Enforcement by
              Trustee....................................................... 52
Section 5.4.  Trustee May File Proofs of Claim.............................. 53
Section 5.5.  Trustee May Enforce Claims without Possession of Securities or
              Coupons....................................................... 54
Section 5.6.  Application of Money Collected................................ 54
Section 5.7.  Limitations on Suits.......................................... 55
Section 5.8.  Unconditional Right of Holders to Receive Principal and any
              Premium, Interest and Additional Amounts...................... 55
Section 5.9.  Restoration of Rights and Remedies............................ 56
Section 5.10. Rights and Remedies Cumulative................................ 56
Section 5.11. Delay or Omission Not Waiver.................................. 56
Section 5.12. Control by Holders of Securities.............................. 57
Section 5.13. Waiver of Past Defaults....................................... 57
Section 5.14. Waiver of Usury, Stay or Extension Laws....................... 57
Section 5.15. Undertaking for Costs......................................... 58

                                   ARTICLE 6
                                  THE TRUSTEE

Section 6.1.  Certain Rights of Trustee..................................... 58
Section 6.2.  Notice of Defaults............................................ 60
Section 6.3.  Not Responsible for Recitals or Issuance of Securities........ 60
Section 6.4.  May Hold Securities........................................... 60
Section 6.5.  Money Held in Trust........................................... 61
Section 6.6.  Compensation and Reimbursement................................ 61
Section 6.7.  Corporate Trustee Required; Eligibility....................... 62
Section 6.8.  Resignation and Removal; Appointment of Successor............. 62
Section 6.9.  Acceptance of Appointment by Successor........................ 64
Section 6.10. Merger, Conversion, Consolidation or Succession to Business... 65
Section 6.11. Appointment of Authenticating Agent........................... 65
</TABLE>

                                      iv
<PAGE>

<TABLE>
<S>           <C>                                                         <C>
                                   ARTICLE 7
          HOLDERS LISTS AND REPORTS BY TRUSTEE, GUARANTOR AND COMPANY

Section 7.1.  Company and Guarantor to Furnish Trustee Names and
              Addresses of Holders.......................................... 67
Section 7.2.  Preservation of Information; Communications to Holders........ 68
Section 7.3.  Reports by Trustee............................................ 68
Section 7.4.  Reports by Company and Guarantor.............................. 68

                                   ARTICLE 8
                 CONSOLIDATION, AMALGAMATIONS, MERGER AND SALES

Section 8.1.  Company May Consolidate, Etc., Only on Certain Terms.......... 69
Section 8.2.  Successor Person Substituted for Company...................... 70
Section 8.3.  Guarantor May Consolidate, Etc., Only on Certain Terms........ 71
Section 8.4.  Successor Person Substituted for Guarantor.................... 72

                                   ARTICLE 9
                            SUPPLEMENTAL INDENTURES

Section 9.1.  Supplemental Indentures without Consent of Holders............ 72
Section 9.2.  Supplemental Indentures with Consent of Holders............... 73
Section 9.3.  Execution of Supplemental Indentures.......................... 75
Section 9.4.  Effect of Supplemental Indentures............................. 76
Section 9.5.  Reference in Securities to Supplemental Indentures............ 76
Section 9.6.  Conformity with Trust Indenture Act........................... 76
Section 9.7.  Effect on Senior Indebtedness................................. 76
Section 9.8.  Notice of Supplemental Indenture.............................. 76

                                   ARTICLE 10
                                   COVENANTS

Section 10.1.  Payment of Principal, any Premium, Interest and Additional
               Amounts...................................................... 77
Section 10.2.  Maintenance of Office or Agency.............................. 77
Section 10.3.  Money for Securities Payments to Be Held in Trust............ 78
Section 10.4.  Additional Amounts........................................... 80
Section 10.5.  Corporate Existence.......................................... 81
Section 10.6.  Waiver of Certain Covenants.................................. 81
Section 10.7.  Company Statement as to Compliance; Notice of Certain
               Defaults..................................................... 81
Section 10.8.  Guarantor Statement as to Compliance; Notice of Certain
               Defaults..................................................... 82
Section 10.9.  Additional Sums.............................................. 83
Section 10.10. Prohibition Against Dividends, etc. ......................... 83
Section 10.11. Payment of Expenses of each ACE Trust........................ 84
Section 10.12. Ownership of Common Securities............................... 84
</TABLE>

                                       v
<PAGE>

<TABLE>
<S>              <C>                                                      <C>
                                   ARTICLE 11
                            REDEMPTION OF SECURITIES

Section 11.1. Applicability of Article...................................... 85
Section 11.2. Election to Redeem; Notice to Trustee......................... 85
Section 11.3. Selection by Trustee of Securities to be Redeemed............. 85
Section 11.4. Notice of Redemption.......................................... 86
Section 11.5. Deposit of Redemption Price................................... 87
Section 11.6. Securities Payable on Redemption Date......................... 88
Section 11.7. Securities Redeemed in Part................................... 88
Section 11.8. Right of Redemption of Securities Issued to an ACE Trust...... 89

                                   ARTICLE 12
                                 SINKING FUNDS

Section 12.1. Applicability of Article...................................... 89
Section 12.2. Satisfaction of Sinking Fund Payments with Securities......... 90
Section 12.3. Redemption of Securities for Sinking Fund..................... 90

                                   ARTICLE 13
                       REPAYMENT AT THE OPTION OF HOLDERS

Section 13.1. Applicability of Article...................................... 91

                                   ARTICLE 14
                        SECURITIES IN FOREIGN CURRENCIES

Section 14.1. Applicability of Article...................................... 91

                                   ARTICLE 15
                       MEETINGS OF HOLDERS OF SECURITIES

Section 15.1. Purposes for Which Meetings May Be Called..................... 92
Section 15.2. Call, Notice and Place of Meetings............................ 92
Section 15.3. Persons Entitled to Vote at Meetings.......................... 92
Section 15.4. Quorum; Action................................................ 93
Section 15.5. Determination of Voting Rights; Conduct and Adjournment of
              Meetings...................................................... 93
Section 15.6. Counting Votes and Recording Action of Meetings............... 94

                                   ARTICLE 16
                          SUBORDINATION OF SECURITIES

Section 16.1. Agreement to Subordinate...................................... 95
Section 16.2. Default on Company Senior Indebtedness........................ 95
Section 16.3. Liquidation; Dissolution; Bankruptcy.......................... 96
Section 16.4. Subrogation................................................... 97
Section 16.5. Trustee to Effectuate Subordination........................... 98
Section 16.6. Notice by the Company......................................... 98
</TABLE>

                                      vi
<PAGE>

<TABLE>
<S>           <C>                                                          <C>
Section 16.7. Rights of the Trustee; Holders of Company Senior Indebtedness. 99
Section 16.8. Subordination May Not Be Impaired.............................100

                                   ARTICLE 17
                            GUARANTEE AND INDEMNITY

Section 17.1. The Guarantee.................................................101
Section 17.2. Net Payments..................................................101
Section 17.3. Guarantee Unconditional, etc. ................................103
Section 17.4. Reinstatement.................................................104
Section 17.5. Subrogation...................................................104
Section 17.6. Indemnity.....................................................104

                                   ARTICLE 18
                           SUBORDINATION OF GUARANTEE

Section 18.1. Agreement to Subordinate Guarantee............................104
Section 18.2. Default on Guarantor Senior Indebtedness......................105
Section 18.3. Liquidation; Dissolution; Bankruptcy..........................105
Section 18.4. Subrogation...................................................107
Section 18.5. Trustee to Effectuate Subordination...........................108
Section 18.6. Notice by the Guarantor.......................................108
Section 18.7. Rights of the Trustee; Holders of Guarantor Senior
              Indebtedness..................................................109
Section 18.8. Subordination May Not Be Impaired.............................109
</TABLE>

                                      vii
<PAGE>

     INDENTURE, dated as of December 1, 1999 (the "Indenture"), among ACE INA
HOLDINGS INC., a corporation duly organized and existing under the laws of the
State of Delaware (hereinafter called the "Company"), having its principal
executive office located at Two Liberty Place, 1601 Chestnut Street,
Philadelphia, Pennsylvania 19101, ACE LIMITED, a company duly organized and
existing under the laws of the Cayman Islands (hereinafter called the
"Guarantor"), having its principal executive office at The ACE Building, 30
Woodbourne Avenue, Hamilton HM 08, Bermuda, and BANK ONE TRUST COMPANY, NATIONAL
ASSOCIATION, a national banking association duly organized and existing under
the laws of the United States of America (hereinafter called the "Trustee"),
having its Corporate Trust Office located at Bank One Plaza, Suite 0126,
Chicago, Illinois 60670-0126.

                                    Recitals

     The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its subordinated
unsecured debentures, notes or other evidences of indebtedness (hereinafter
called the "Securities"), including, without limitation, Securities issued to
evidence loans made to the Company of the proceeds from the issuance from time
to time by one or more ACE Trusts (as defined herein) of preferred beneficial
interests in the assets of such Trusts (the "Preferred Securities") and common
beneficial interests in the assets of such Trusts (the "Common Securities" and,
collectively with the Preferred Securities, the "Trust Securities"), unlimited
as to principal amount, to bear such rates of interest, to mature at such time
or times, to be issued in one or more series and to have such other provisions
as shall be fixed as hereinafter provided.

     The Company has duly authorized the execution and delivery of this
Indenture.  All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

     For value received, the Guarantor has duly authorized the execution and
delivery of this Indenture to provide for the issuance of the Guarantee and the
indemnity provided for herein.  All things necessary to make this Indenture a
valid agreement of the Guarantor, in accordance with its terms, have been done.

     This Indenture is subject to the provisions of the Trust Indenture Act of
1939, as amended, and the rules and regulations of the Securities and Exchange
Commission promulgated thereunder that are required to be part of this Indenture
and, to the extent applicable, shall be governed by such provisions.

     Now, Therefore, This Indenture Witnesseth:

     For and in consideration of the premises and the purchase of the Securities
by the Holders (as herein defined) thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Securities
or of any series thereof and any Coupons (as herein defined), as follows:

<PAGE>

                                   ARTICLE 1

            Definitions and Other Provisions of General Application

Section 1.1.  Definitions.
     Except as otherwise expressly provided in or pursuant to this Indenture or
unless the context otherwise requires, for all purposes of this Indenture:

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

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

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

         (4) the words "herein," "hereof," "hereto" and "hereunder" and other
     words of similar import refer to this Indenture as a whole and not to any
     particular Article, Section or other subdivision; and

        (5) the word "or" is always used inclusively (for example, the phrase "A
     or B" means "A or B or both," not "either A or B but not both").

     Certain terms used principally in certain Articles hereof are defined in
those  Articles.

     "ACE Trusts" means, collectively, ACE Capital Trust I, ACE Capital Trust II
and ACE Capital Trust III, each a statutory business trust formed under the laws
of the State of Delaware, or any other similar trust created to issue Trust
Securities and to use the proceeds from the sale thereof to purchase Securities
issued under this Indenture .

     "Act," when used with respect to any Holders, has the meaning specified in
Section 1.4.

     "Additional Amounts" means any additional amounts which are required hereby
or by any Security, under circumstances specified herein or therein, to be paid
by the Company or the Guarantor in respect of certain taxes, assessments or
other governmental charges imposed on Holders specified therein and which are
owing to such Holders.

     "Additional Interest" means the interest, if any, that shall accrue on any
interest on the Securities of any series the payment of which has not been made
on the applicable Interest

                                       2
<PAGE>

Payment Date and which shall accrue at the rate per annum specified or
determined as specified in such Security.

     "Additional Sums" has the meaning specified in Section 10.9.

     "Additional Taxes" means the sum of any additional taxes, duties and other
governmental charges to which an ACE Trust has become subject from time to time
as a result of a Tax Event.

     "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person; provided, however, that an Affiliate of the
Company or the Guarantor, as the case may be, shall not be deemed to include any
ACE Trust to which Securities and the Guarantee in respect thereof have been
issued.  For the purposes of this definition, "control," when used with respect
to any specified Person, means the power to direct the  management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have the meanings correlative to the foregoing.

     "Authenticating Agent" means any Person authorized by the Trustee pursuant
to Section 6.11 to act on behalf of the Trustee to authenticate Securities of
one or more series.

     "Authorized Newspaper" means a newspaper, in an official language of the
place of publication or in the English language, customarily published on each
day that is a Business Day in the place of publication, whether or not published
on days that are Legal Holidays in the place of publication, and of general
circulation in each place in connection with which the term is used or in the
financial community of each such place.  Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any day that is a Business Day in the
place of publication.

     "Authorized Officer" means, when used with respect to the Company, the
Chairman of the Board of Directors, a Vice Chairman, the President, any Vice
President, the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary, of the Company.

     "Bearer Security" means any Security in the form established pursuant to
Section 2.1 which is payable to bearer.

     "Board of Directors" means the board of directors of the Company or any
committee of that board duly authorized to act generally or in any particular
respect for the Company hereunder.

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

                                       3
<PAGE>

     "Business Day," with respect to any Place of Payment or other location,
means, unless otherwise specified with respect to any Securities pursuant to
Section 3.1, any day other than a Saturday, Sunday or other day on which banking
institutions in such Place of Payment or other location are authorized or
obligated by law, regulation or executive order to close.

     "Capital Stock" of any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including Preferred
Stock, but excluding any debt securities convertible into such equity.

     "Capitalized Lease Obligation" means an obligation under a lease that is
required to be capitalized for financial reporting purposes in accordance with
generally accepted accounting principles, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with such principles.

     "Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, as amended,
or, if at any time after the execution of this Indenture such Commission is not
existing and performing  the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

     "Common Securities" has the meaning specified in the first recital of this
Indenture.

     "Common Stock" in respect of any Corporation means Capital Stock of any
class or classes (however designated) which has no preference as to the payment
of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Corporation, and which is not
subject to redemption by such Corporation.

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

     "Company Request" and "Company Order" mean, respectively, a written request
or order, as the case may be, signed in the name of the Company by an Authorized
Officer, and delivered to the Trustee.

     "Company Senior Indebtedness" means, with respect to the Securities of any
particular series, all Indebtedness of the Company outstanding at any time,
except (a) the Securities of such series, (b) Indebtedness as to which, by the
terms of the instrument creating or evidencing the same, it is provided that
such Indebtedness is subordinated to or pari passu with the Securities of such
series, (c) Indebtedness of the Company to an Affiliate of the Company, (d)
interest accruing after the filing of a petition initiating any proceeding
relating to the Company referred to in Section 5.1(7) and 5.1(8) unless such
interest is an allowed claim enforceable against the Company in a proceeding
under federal or state bankruptcy laws, (e) trade accounts payable and

                                       4
<PAGE>

(f) any Indebtedness, including all other debt securities and guarantees in
respect of those debt securities, initially issued to (x) any ACE Trust or (y)
any trust, partnership or other entity affiliated with the Guarantor which is a
financing vehicle of the Guarantor or any Affiliate of the Guarantor in
connection with the issuance by such entity of Preferred Securities or other
securities which are similar to Preferred Securities that are guaranteed by the
Guarantor pursuant to an instrument that ranks pari passu with or junior in
right of payment to the Preferred Securities Guarantees.

     "Conversion Event" means the cessation of use of (i) a Foreign Currency
both by the government of the country or the confederation which issued such
Foreign Currency and for the settlement of transactions by a central bank or
other public institutions of or within the international banking community or
(ii) any currency unit or composite currency for the purposes for which it was
established.

     "Corporate Trust Office" means the principal corporate trust office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of original execution of this Indenture
is located at 14 Wall Street, Window 2, 8th Floor, New York, New York 10003.

     "Corporation" includes corporations and limited liability companies and,
except for purposes of Article 8, associations, companies and business trusts.

     "Coupon" means any interest coupon appertaining to a Bearer Security.

     "Currency," with respect to any payment, deposit or other transfer in
respect of the principal of or any premium or interest on or any Additional
Amounts with respect to any Security, means Dollars or the Foreign Currency, as
the case may be, in which such payment, deposit or other transfer is required to
be made by or pursuant to the terms hereof or such Security and, with respect to
any other payment, deposit or transfer pursuant to or contemplated by the terms
hereof or such Security, means Dollars.

     "CUSIP number" means the alphanumeric designation assigned to a Security by
Standard & Poor's Ratings Service, CUSIP Service Bureau.

     "Defaulted Interest" has the meaning specified in Section 3.7.

     "Direct Action" has the meaning specified in Section 5.8.

     "Distributions," with respect to any ACE Trust, has the meaning specified
in the applicable Trust Agreement of such ACE Trust.

     "Dollars" or "$" means a dollar or other equivalent unit of legal tender
for payment of public or private debts in the United States of America.

     "Event of Default" has the meaning specified in Section 5.1.

                                       5
<PAGE>

     "Extension Period" has the meaning specified in Section 3.11.

     "Foreign Currency" means any currency, currency unit or composite currency,
including, without limitation, the euro, issued by the government of one or more
countries other than the United States of America or by any recognized
confederation or association of such governments.

     "Government Obligations" means securities which are (i) direct obligations
of the United States of America or the other government or governments which
issued the Foreign Currency in which the principal of or any premium or interest
on such Security or any Additional Amounts in respect thereof shall be payable,
in each case where the payment or payments thereunder are supported by the full
faith and credit of such government or governments or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America or such other government or governments, in each
case where the timely payment or payments thereunder are unconditionally
guaranteed as a full faith and credit obligation by the United States of America
or such other government or governments, and which, in the case of (i) or (ii),
are not callable or redeemable at the option of the issuer or issuers thereof,
and shall also include a depository receipt issued by a bank or trust company as
custodian with respect to any such Government Obligation or a specific payment
of interest on or principal of or other amount with respect to any such
Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the Government Obligation or the specific payment of interest on or principal of
or other amount with respect to the Government Obligation evidenced by such
depository receipt.

     "Guarantee" means the unconditional guarantee of the payment of the
principal of, any premium or interest on, and any Additional Amounts with
respect to the Securities by the Guarantor, as more fully set forth in Article
17.

     "Guarantee Agreement" means the Guarantee Agreement with respect to the
Preferred Securities of an ACE Trust, substantially in such form as may be
specified as contemplated by Section 3.1 with respect to the Securities of any
series, in each case as amended from time to time.

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

     "Guarantor's Board of Directors"' means the board of directors of the
Guarantor or any committee of that board duly authorized to act generally or in
any particular respect for the Guarantor hereunder.

     "Guarantor's Board Resolution"' means a copy of one or more resolutions,
certified by the Secretary or an Assistant Secretary of the Guarantor to have
been duly adopted by the

                                       6
<PAGE>

Guarantor's Board of Directors and to be in full force and effect on the date of
such certification, delivered to the Trustee.

     "Guarantor's Officer's Certificate"'' means a certificate signed by the
Chairman of the Guarantor's Board of Directors, a Vice Chairman, the President,
the Chief Financial Officer, the Chief Investment Officer, the Chief Accounting
Officer, the General Counsel or the Secretary of the Guarantor, that complies
with the requirements of Section 314(e) of the Trustee Indenture Act and is
delivered to the Trustee.

     "Guarantor Request" and "Guarantor Order"} mean, respectively, a written
request or order, as the case may be, signed in the name of the Guarantor by the
Chairman of the Guarantor's Board of Directors, a Vice Chairman, the President,
the Chief Financial Officer, the Chief Investment Officer, the Chief Accounting
Officer, the General Counsel or the Secretary of the Guarantor, and delivered to
the Trustee.

     "Guarantor Senior Indebtedness" means, with respect to the Securities of
any particular series, all Indebtedness of the Guarantor outstanding at any
time, except (a) the Guarantor's obligations under the Guarantee in respect of
the Securities of such series, (b) Indebtedness as to which, by the terms of the
instrument creating or evidencing the same, it is provided that such
Indebtedness is subordinated to or pari passu with the Guarantor's obligations
under the Guarantee in respect of the Securities of such series, (c)
Indebtedness of the Guarantor to an Affiliate of the Guarantor, (d) interest
accruing after the filing of a petition initiating any proceeding relating to
the Guarantor referred to in Section 5.1(7) and 5.1(8) unless such interest is
an allowed claim enforceable against the Guarantor in a proceeding under federal
or state bankruptcy laws, (e) trade accounts payable, (f) the Guarantor's
obligations under the Guarantee in respect of the Securities of such series
initially issued to (x) any ACE Trust or (y) any trust, partnership or other
entity affiliated with the Guarantor which is a financing vehicle of the
Guarantor or any Affiliate of the Guarantor in connection with the issuance by
such entity of Preferred Securities or other securities which are similar to
Preferred Securities that are guaranteed by the Guarantor pursuant to an
instrument that ranks pari passu with or junior in right of payment to the
Preferred Securities Guarantees and (g) all Preferred Securities Guarantees and
all guarantees similar to the Preferred Securities Guarantees issued by the
Guarantor on behalf of holders of Preferred Securities of an ACE Trust or other
securities similar to Preferred Securities issued by any trust, partnership or
other entity affiliated with the Guarantor which is a financing vehicle of the
Guarantor or any Affiliate of the Guarantor.

     "Holder," in the case of any Registered Security, means the Person in whose
name such Security is registered in the Security Register and, in the case of
any Bearer Security, means the bearer thereof and, in the case of any Coupon,
means the bearer thereof.

     "Indebtedness" means, with respect to any Person, (i) the principal of and
any premium and interest on (a) indebtedness of such Person for money borrowed
and (b) indebtedness evidenced by notes, debentures, bonds or other similar
instruments for the payment of which such Person is responsible or liable; (ii)
all Capitalized Lease Obligations of such Person; (iii) all obligations of such
Person issued or assumed as the deferred purchase price of property, all

                                       7
<PAGE>

conditional sale obligations and all obligations under any title retention
agreement (but excluding trade accounts payable arising in the ordinary course
of business); (iv) all obligations of such Person for the reimbursement of any
obligor on any letter of credit, banker's acceptance or similar credit
transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in (i) through (iii) above)
entered into in the ordinary course of business of such Person to the extent
such letters of credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the third Business Day following
receipt by such Person of a demand for reimbursement following payment on the
letter of credit); (v) all obligations of the type referred to in clauses (i)
through (iv) of other Persons and all dividends of other Persons for the payment
of which, in either case, such Person is responsible or liable as obligor,
guarantor or otherwise; (vi) all obligations of the type referred to in clauses
(i) through (v) of other Persons secured by any Lien on any property or asset of
such Person (whether or not such obligation is assumed by such Person), the
amount of such obligation being deemed to be the lesser of the value of such
property or assets or the amount of the obligation so secured; and (vii) any
amendments, modifications, refundings, renewals or extensions of any
indebtedness or obligation described as Indebtedness in clauses (i) through (vi)
above.

     "Indenture" means this instrument as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and, with respect to any
Security, by the terms and provisions of such Security and any Coupon
appertaining thereto established pursuant to Section 3.1 (as such terms and
provisions may be amended pursuant to the applicable provisions hereof).

     "Independent Public Accountants" means accountants or a firm of accountants
that, with respect to the Company, the Guarantor and any other obligor under the
Securities or the Coupons, are independent public accountants within the meaning
of the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Commission thereunder, who may be the independent public
accountants regularly retained by the Company or the Guarantor or who may be
other independent public accountants.  Such accountants or firm shall be
entitled to rely upon any Opinion of Counsel as to the interpretation of any
legal matters relating to this Indenture or certificates required to be provided
hereunder.

     "Indexed Security" means a Security the terms of which provide that the
principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.

     "Interest", with respect to any Original Issue Discount Security which by
its terms bears interest only after Maturity, means interest payable after
Maturity and, when used with respect to a Security which provides for the
payment of Additional Amounts pursuant to Section 10.4 or 17.2, includes such
Additional Amounts.

     "Interest Payment Date," with respect to any Security, means the Stated
Maturity of an installment of interest on such Security.

                                       8
<PAGE>

     "Investment Company Event" means, in respect of an ACE Trust, the receipt
by such ACE Trust of an Opinion of Counsel, rendered by an independent law firm
experienced in such matters, to the effect that, as a result of the occurrence
of a change in law or regulation or a change in interpretation or application of
law or regulation by any legislative body, court, governmental agency or
regulatory authority (a "Change in 1940 Act Law"), such ACE Trust is or will be
considered an investment company that is required to be registered  under the
1940 Act, which Change in 1940 Act Law becomes effective on or after the date of
original issuance of the Preferred Securities of such ACE Trust.

     "Judgment Currency" has the meaning specified in Section 1.17.

     "Lien" means any mortgage, pledge, lien, security interest or other
encumbrance.

     "Maturity", with respect to any Security, means the date on which the
principal of such Security or an installment of principal becomes due and
payable as provided in or pursuant to this Indenture, whether at the Stated
Maturity or by declaration of acceleration, notice of redemption or repurchase,
notice of option to elect repayment or otherwise, and includes the Redemption
Date.

     "New York Banking Day" has the meaning specified in Section 1.17.

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

     "Office" or "Agency," with respect to any Securities, means an office or
agency of the Company and the Guarantor maintained or designated in a Place of
Payment for such Securities pursuant to Section 10.2 or any other office or
agency of the Company and the Guarantor maintained or designated for such
Securities pursuant to Section 10.2 or, to the extent designated or required by
Section 10.2 in lieu of such office or agency, the Corporate Trust Office of the
Trustee.

     "Officer's Certificate" means a certificate signed by an Authorized
Officer that complies with the requirements of Section 314(e) of the Trust
Indenture Act and is delivered to the Trustee.

     "Opinion of Counsel" means a written opinion of counsel, who may be an
employee of or counsel for the Company or the Guarantor, as the case may be, or
other counsel who shall be reasonably acceptable to the Trustee, that, if
required by the Trust Indenture Act, complies with the requirements of Section
314(e) of the Trust Indenture Act.

     "Original Issue Discount Security" means a Security issued pursuant to this
Indenture which provides for declaration of an amount less than the principal
face amount thereof to be due and payable upon acceleration pursuant to Section
5.2.

                                       9
<PAGE>

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

          (a)  any such Security theretofore cancelled by the Trustee or the
               Security Registrar or delivered to the Trustee or the Security
               Registrar for cancellation;

          (b)  any such Security for whose payment at the Maturity thereof money
               in the necessary amount has been theretofore deposited pursuant
               hereto (other than pursuant to Section 4.2) with the Trustee or
               any Paying Agent (other than the Company or the Guarantor) in
               trust or set aside and segregated in trust by the Company or the
               Guarantor (if the Company shall act as its own, or authorize the
               Guarantor to act as, Paying Agent) for the Holders of such
               Securities and any Coupons appertaining thereto, provided that,
               if such Securities are to be redeemed, notice of such redemption
               has been duly given pursuant to this Indenture or provision
               therefor satisfactory to the Trustee has been made;

          (c)  any such Security with respect to which the Company or the
               Guarantor has effected defeasance pursuant to the terms hereof,
               except to the extent provided in Section 4.2;

          (d)  any such Security which has been paid pursuant to Section 3.6 or
               in exchange for or in lieu of which other Securities have been
               authenticated and delivered pursuant to this Indenture, unless
               there shall have been presented to the Trustee proof satisfactory
               to it that such Security is held by a bona fide purchaser in
               whose hands such Security is a valid obligation of the Company;
               and

          (e)  any such Security converted or exchanged as contemplated by this
               Indenture into securities of the Company or the Guarantor or
               another issuer, if the terms of such Security provide for such
               conversion or exchange pursuant to Section 3.1;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders of Securities for quorum purposes, (i) the principal amount
of an Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall
be equal to the amount of the principal thereof that pursuant to the terms of
such Original Issue Discount Security would be declared (or shall have been
declared to be) due and payable upon a declaration of acceleration thereof
pursuant to Section 5.2 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such
determination and that shall be deemed Outstanding for such purposes shall be
equal to

                                       10
<PAGE>

the principal face amount of such Indexed Security at original issuance, unless
otherwise provided in or pursuant to this Indenture, and (iii) the principal
amount of a Security denominated in a Foreign Currency shall be the Dollar
equivalent, determined on the date of original issuance of such Security, of the
principal amount (or, in the case of an Original Issue Discount Security, the
Dollar equivalent on the date of original issuance of such Security of the
amount determined as provided in (i) above) of such Security, and (iv)
Securities owned by the Company, the Guarantor or any other obligor upon the
Securities or any Affiliate of the Company, the Guarantor or such other obligor,
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making any such
determination or relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which shall have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee (A)
the pledgee's right so to act with respect to such Securities and (B) that the
pledgee is not the Company, the Guarantor or any other obligor upon the
Securities or any Coupons appertaining thereto or an Affiliate of the Company,
the Guarantor or such other obligor.

     "Paying Agent" means any Person authorized by the Company to pay the
principal of, or any premium or interest on, or any Additional Amounts with
respect to, any Security or any Coupon on behalf of the Company.

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

     "Place of Payment," with respect to any Security, means the place or places
where the principal of, or any premium or interest on, or any Additional Amounts
with respect to such Security are payable as provided in or pursuant to this
Indenture or such Security.

     "Preferred Securities" has the meaning specified in the first recital of
this Indenture.

     "Preferred Securities Guarantee" means the guarantee by ACE Limited, in its
capacity as guarantor with respect to the Preferred Securities of an ACE Trust,
of distributions on such Preferred Securities to the extent provided in the
Guarantee Agreement.

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same Indebtedness as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 3.6 in exchange for or in
lieu of a lost, destroyed, mutilated or stolen Security or any Security to which
a mutilated, destroyed, lost or stolen Coupon appertains shall be deemed to
evidence the same Indebtedness as the lost, destroyed, mutilated or stolen
Security or the Security to which a mutilated, destroyed, lost or stolen Coupon
appertains.

     "Preferred Stock" in respect of any Corporation means Capital Stock of any
class or classes (however designated) which is preferred as to the payment of
dividends, or as to the

                                       11
<PAGE>

distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Corporation, over shares of Capital Stock of any other class
of such Corporation.

     "Property Trustee," with respect to any ACE Trust, means the entity acting
in the capacity of Property Trustee pursuant to the related Trust Agreement.

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

     "Redemption Price," with respect to any Security or portion thereof to be
redeemed, means the price at which it is to be redeemed as determined by or
pursuant to this Indenture or such Security.

     "Registered Security" means any Security established pursuant to Section
2.1 which is registered in a Security Register.

     "Regular Record Date" for the interest payable on any Registered Security
on any Interest Payment Date therefor means the date, if any, specified in or
pursuant to this Indenture or such Security as the "Regular Record Date".

     "Required Currency" has the meaning specified in Section 1.17.

     "Responsible Officer" means any vice president, any assistant vice
president, the secretary, any assistant secretary, the treasurer, any assistant
treasurer, or any trust officer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his or her
knowledge of and familiarity with the particular subject.

     "Security" or "Securities" means any note or notes, bond or bonds,
debenture or debentures, or any other evidences of Indebtedness, as the case may
be, authenticated and delivered under this Indenture; provided, however, that,
if at any time there is more than one Person acting as Trustee under this
Indenture, "Securities," with respect to any such Person, shall mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.

     "Security Register" and "Security Registrar" have the respective meanings
specified in Section 3.5.

     "Senior Indebtedness," with respect to the Securities of any particular
series, means, collectively, Company Senior Indebtedness with respect to the
Securities of such series and Guarantor Senior Indebtedness with respect to the
Securities of such series.

     "Special Event" means an Investment Company Event or a Tax Event.

                                       12
<PAGE>

     "Special Record Date" for the payment of any Defaulted Interest on any
Registered Security means a date fixed by the Company pursuant to Section 3.7.

     "Stated Maturity," with respect to any Security or any installment of
principal thereof or interest thereon or any Additional Amounts with respect
thereto, means the date established by or pursuant to this Indenture or such
Security as the fixed date on which the principal of such Security or such
installment of principal or interest is, or such Additional Amounts are, due and
payable.

     "Subsidiary" means, in respect of any Person, any Corporation, limited or
general partnership or other business entity of which at the time of
determination more than 50% of the voting power of the shares of its Capital
Stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is owned or controlled, directly or
indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of
such Person or (iii) one or more Subsidiaries of such Person.

     "Tax Event" means, in respect of an ACE Trust, the receipt by such ACE
Trust or the Company of an Opinion of Counsel, rendered by an independent law
firm 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 or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the date of original
issuance of the Preferred Securities of such ACE Trust, there is more than an
insubstantial risk that (i) such ACE Trust is, or will be within 90 days of the
date of such Opinion of Counsel, subject to United States Federal income tax
with respect to income received or accrued on the corresponding series of
Securities, (ii) interest payable by the Company on the corresponding series of
Securities is not, or within 90 days of the date of such Opinion of Counsel will
not be, deductible by the Company, in whole or in part, for United States
Federal income tax purposes or (iii) such ACE Trust is, or will be within 90
days of the date of such Opinion of Counsel, subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

     "Trust Agreement" means the Trust Agreement substantially in the form
attached hereto as Annex A, as amended by an Amended and Restated Trust
Agreement substantially in such form as may be specified as contemplated by
Section 3.1 with respect to the Securities of any series, in each case as
amended from time to time.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
and any reference herein to the Trust Indenture Act or a particular provision
thereof shall mean such Act or provision, as the case may be, as amended or
replaced from time to time or as supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes of
such Act or provision, as the case may be.

                                       13
<PAGE>

     "Trust Securities," with respect to any ACE Trust, means, collectively, the
Common Securities and Preferred Securities issued by such ACE Trust.

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

     "United States," except as otherwise provided in or pursuant to this
Indenture or any Security, means the United States of America (including the
states thereof and the District of Columbia), its territories and possessions
and other areas subject to its jurisdiction.

     "United States Alien," except as otherwise provided in or pursuant to this
Indenture or any Security, means any Person who, for United States Federal
income tax purposes, is a foreign corporation, a non-resident alien individual,
a non-resident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non-resident alien individual or a
non-resident alien fiduciary of a foreign estate or trust.

     "U.S. Depository" or "Depository" means, with respect to any Security
issuable or issued in the form of one or more global Securities, the Person
designated as U.S. Depository or Depository by the Company in or pursuant to
this Indenture, which Person must be, to the extent required by applicable law
or regulation, a clearing agency registered under the Securities Exchange Act of
1934, as amended, and, if so provided with respect to any Security, any
successor to such Person.  If at any time there is more than one such Person,
"U.S. Depository" or "Depository" shall mean, with respect to any Securities,
the qualifying entity which has been appointed with respect to such Securities.

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

     Section 1.2.  Compliance Certificates and Opinions.

     Except as otherwise expressly provided in this Indenture, upon any
application or request by the Company or the Guarantor to the Trustee to take
any action under any provision of this Indenture, the Company or the Guarantor,
as the case may be, shall furnish to the Trustee an Officer's Certificate or a
Guarantor's Officer's Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents or any of them is specifically required by any provision

                                       14
<PAGE>

of this Indenture relating to such particular application or request, no
additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

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

          (2) a brief statement as to the nature and scope of the examination or
     investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

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

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

     Section 1.3.  Form of Documents Delivered to Trustee.

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

     Any certificate or opinion of an officer of the Company or the Guarantor
may be based, insofar as it relates to legal matters, upon an Opinion of
Counsel, provided that such officer, after reasonable inquiry, has no reason to
believe and does not believe that the Opinion of Counsel with respect to the
matters upon which his certificate or opinion is based is erroneous.  Any such
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Company or the Guarantor, as the case may be, stating that the information
with respect to such factual matters is in the possession of the Company or the
Guarantor, as the case may be, provided that such counsel, after reasonable
inquiry, has no reason to believe and does not believe that the certificate or
opinion or representations with respect to such matters are erroneous.

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

                                       15
<PAGE>

     Section 1.4.  Acts of Holders.

          (1) Any request, demand, authorization, direction, notice, consent,
     waiver or other action provided by or pursuant to this Indenture to be
     given or taken by Holders or by holders of Preferred Securities may be
     embodied in and evidenced by one or more instruments of substantially
     similar tenor signed by such Holders or holders of Preferred Securities, as
     applicable, in person or by an agent duly appointed in writing. If, but
     only if, Securities of a series are issuable as Bearer Securities, any
     request, demand, authorization, direction, notice, consent, waiver or other
     action provided in or pursuant to this Indenture to be given or taken by
     Holders of Securities of such series may, alternatively, be embodied in and
     evidenced by the record of Holders of Securities of such series voting in
     favor thereof, either in person or by proxies duly appointed in writing, at
     any meeting of Holders of Securities of such series duly called and held in
     accordance with the provisions of Article 15, or a combination of such
     instruments and any such record. Except as herein otherwise expressly
     provided, such action shall become effective when such instrument or
     instruments or record or both are delivered to the Trustee and, where it is
     hereby expressly required, to the Company or the Guarantor or both of them.
     Such instrument or instruments and any such record (and the action embodied
     therein and evidenced thereby) are herein sometimes referred to as the
     "Act" of the Holders or holders of Preferred Securities signing such
     instrument or instruments or so voting at any such meeting. Proof of
     execution of any such instrument or of a writing appointing any such agent,
     or of the holding by any Person of a Security, shall be sufficient for any
     purpose of this Indenture and (subject to Section 315 of the Trust
     Indenture Act) conclusive in favor of the Trustee, the Company and the
     Guarantor and any agent of the Trustee, the Company or the Guarantor, if
     made in the manner provided in this Section. The record of any meeting of
     Holders of Securities shall be proved in the manner provided in Section
     15.6.

          Without limiting the generality of this Section 1.4, unless otherwise
     provided in or pursuant to this Indenture, a Holder, including a U.S.
     Depository that is a Holder of a global Security, may make, give or take,
     by a proxy or proxies, duly appointed in writing, any request, demand,
     authorization, direction, notice, consent, waiver or other Act provided in
     or pursuant to this Indenture to be made, given or taken by Holders, and a
     U.S. Depository that is a Holder of a global Security may provide its proxy
     or proxies to the beneficial owners of interests in any such global
     Security through such U.S. Depository's standing instructions and customary
     practices.

          The Company shall fix a record date for the purpose of determining the
     Persons who are beneficial owners of interest in any permanent global
     Security held by a U.S. Depository entitled under the procedures of such
     U.S. Depository to make, give or take, by a proxy or proxies duly appointed
     in writing, any request, demand, authorization, direction, notice, consent,
     waiver or other Act provided in or pursuant to this Indenture to be made,
     given or taken by Holders.  If such a record date is fixed, the Holders on
     such record date or their duly appointed proxy or proxies, and only such
     Persons, shall be

                                       16
<PAGE>

     entitled to make, give or take such request, demand, authorization,
     direction, notice, consent, waiver or other Act, whether or not such
     Holders remain Holders after such record date. No such request, demand,
     authorization, direction, notice, consent, waiver or other Act shall be
     valid or effective if made, given or taken more than 90 days after such
     record date.

          (2) The fact and date of the execution by any Person of any such
     instrument or writing referred to in this Section 1.4 may be proved in any
     reasonable manner; and the Trustee may in any instance require further
     proof with respect to any of the matters referred to in this Section.

          (3) The ownership, principal amount and serial numbers of Registered
     Securities held by any Person, and the date of the commencement and the
     date of the termination of holding the same, shall be proved by the
     Security Register.

          (4) The ownership, principal amount and serial numbers of Bearer
     Securities held by any Person, and the date of the commencement and the
     date of the termination of holding the same, may be proved by the
     production of such Bearer Securities or by a certificate executed, as
     depositary, by any trust company, bank, banker or other depositary
     reasonably acceptable to the Company and the Guarantor, wherever situated,
     if such certificate shall be deemed by the Company, the Guarantor and the
     Trustee to be satisfactory, showing that at the date therein mentioned such
     Person had on deposit with such depositary, or exhibited to it, the Bearer
     Securities therein described; or such facts may be proved by the
     certificate or affidavit of the Person holding such Bearer Securities, if
     such certificate or affidavit is deemed by the Trustee to be satisfactory.
     The Trustee, the Company and the Guarantor may assume that such ownership
     of any Bearer Security continues until (i) another certificate or affidavit
     bearing a later date issued in respect of the same Bearer Security is
     produced, or (ii) such Bearer Security is produced to the Trustee by some
     other Person, or (iii) such Bearer Security is surrendered in exchange for
     a Registered Security, or (iv) such Bearer Security is no longer
     Outstanding. The ownership, principal amount and serial numbers of Bearer
     Securities held by the Person so executing such instrument or writing and
     the date of the commencement and the date of the termination of holding the
     same may also be proved in any other manner which the Company, the
     Guarantor and the Trustee deem sufficient.

          (5) If the Company or the Guarantor shall solicit from the Holders of
     any Registered Securities any request, demand, authorization, direction,
     notice, consent, waiver or other Act, the Company or the Guarantor, as the
     case may be, may at its option (but is not obligated to), by Board
     Resolution or Guarantor's Board Resolution, as the case may be, fix in
     advance a record date for the determination of Holders of Registered
     Securities entitled to give such request, demand, authorization, direction,
     notice, consent, waiver or other Act. If such a record date is fixed, such
     request, demand, authorization, direction, notice, consent, waiver or other
     Act may be given before or after such record date, but only the Holders of
     Registered Securities of record at the close of business on

                                       17
<PAGE>

     such record date shall be deemed to be Holders for the purpose of
     determining whether Holders of the requisite proportion of Outstanding
     Securities have authorized or agreed or consented to such request, demand,
     authorization, direction, notice, consent, waiver or other Act, and for
     that purpose the Outstanding Securities shall be computed as of such record
     date; provided that no such authorization, agreement or consent by the
     Holders of Registered Securities shall be deemed effective unless it shall
     become effective pursuant to the provisions of this Indenture not later
     than six months after the record date.

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

     Section 1.5.  Notices, etc. to Trustee, Company and Guarantor.

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

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

          (2) the Company or the Guarantor, as the case may be, by the Trustee
     or any Holder shall be sufficient for every purpose hereunder (unless
     otherwise herein expressly provided) if in writing and mailed, first-class
     postage prepaid, to the Company or the Guarantor, as the case may be,
     addressed to the attention of its Treasurer, with a copy to the attention
     of its General Counsel, at the address of its principal office specified in
     the first paragraph of this instrument or at any other address previously
     furnished in writing to the Trustee by the Company or the Guarantor, as the
     case may be.

     Section 1.6.  Notice to Holders of Securities; Waiver.

     Except as otherwise expressly provided in or pursuant to this Indenture,
where this Indenture provides for notice to Holders of Securities of any event,

          (1) such notice shall be sufficiently given to Holders of Registered
     Securities if in writing and mailed, first-class postage prepaid, to each
     Holder of a Registered Security affected by such event, at his address as
     it appears in the Security Register, not later than the latest date, and
     not earlier than the earliest date, prescribed for the giving of such
     notice; and

                                       18
<PAGE>

          (2) such notice shall be sufficiently given to Holders of Bearer
     Securities, if any, if published in an Authorized Newspaper in The City of
     New York and, if such Securities are then listed on any stock exchange
     outside the United States, in an Authorized Newspaper in such city as the
     Company shall advise the Trustee that such stock exchange so requires, on a
     Business Day at least twice, the first such publication to be not earlier
     than the earliest date and the second such publication not later than the
     latest date prescribed for the giving of such notice.

     In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein.  Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given or provided.  In
the case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

     In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearers Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder.  Neither failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of any notice mailed to
Holders of Registered Securities as provided above.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such  waiver shall be the equivalent of such notice.
Waivers of notice by Holders of Securities shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

     Section 1.7.  Language of Notices.

     Any request, demand, authorization, direction, notice, consent, election or
waiver required or permitted under this Indenture shall be in the English
language, except that, if the Company or the Guarantor, as the case may be, so
elects, any published notice may be in an official language of the country of
publication.

     Section 1.8.  Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with any duties
under any required provision of the Trust Indenture Act imposed hereon by
Section 318(c) thereof, such required provision shall control.

                                       19
<PAGE>

     Section 1.9.  Effect of Headings and Table of Contents.

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

     Section 1.10.  Successors and Assigns.

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

     Section 1.11.  Separability Clause.

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

     Section 1.12. Holders of Preferred Securities as Third Party Beneficiaries.

     The Company and the Guarantor hereby acknowledge that, to the extent
specifically set forth herein, the holders of the Preferred Securities of an ACE
Trust shall expressly be third party beneficiaries of this Indenture.  The
Company and the Guarantor further acknowledge that, if an Event of Default has
occurred and is continuing and is attributable to the failure of the Company and
the Guarantor to pay the principal of or premium, if any, or interest on or
Additional Amounts with respect to the Securities of the series held by such ACE
Trust, any holder of the Preferred Securities of such ACE Trust may institute a
Direct Action against the Company or the Guarantor.

     Section 1.13.  Benefits of Indenture.

     Except as other expressly provided herein with respect to holders of
Preferred Securities, nothing in this Indenture, any Security or any Coupon,
express or implied, shall give to any Person, other than the parties hereto and
the holders of Senior Indebtedness, any Security Registrar, any Paying Agent,
any Authenticating Agent and their successors hereunder and the Holders of
Securities or Coupons, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     Section 1.14.  Governing Law.

     This Indenture, the Securities and any Coupons shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made or instruments entered into and, in each case, performed in said
state.

                                       20
<PAGE>

     Section 1.15.  Legal Holidays.

     Unless otherwise specified in or pursuant to this Indenture or any
Securities, in any case where any Interest Payment Date, Stated Maturity or
Maturity of any Security, or the last date on which a Holder has the right to
convert or exchange Securities of a series that are convertible or exchangeable,
shall not be a Business Day at any Place of Payment, then (notwithstanding any
other provision of this Indenture, any Security or any Coupon other than a
provision in any Security or Coupon that specifically states that such provision
shall apply in lieu hereof) payment need not be made at such Place of Payment on
such date, and such Securities need not be converted or exchanged on such date,
but such payment may be made, and such Securities may be converted or exchanged,
on the next succeeding day that is a Business Day at such Place of Payment, and
no interest shall accrue on the amount payable on such date or at such time for
the period from and after such Interest Payment Date, Stated Maturity, Maturity
or last day for conversion or exchange, as the case may be, to such next
succeeding Business Day, except that if such next succeeding Business Day is in
the next succeeding calendar year, such payment may be made, and such Securities
may be converted or exchanged, on the immediately preceding Business Day (in the
case of each of the foregoing, with the same force and effect as if made on such
Interest Payment Date or at such Stated Maturity or Maturity or on such last day
for conversion or exchange, as the case may be).

     Section 1.16.  Counterparts.

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

     Section 1.17.  Judgment Currency.

     The Company and the Guarantor each agrees, to the fullest extent that it
may effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of, or premium or interest, if any, or Additional
Amounts on the Securities of any series (the "Required Currency") into a
currency in which a judgment will be rendered (the "Judgment Currency"), the
rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
requisite amount of the Required Currency with the Judgment Currency on the New
York Banking Day preceding the day on which a final unappealable judgment is
given and (b) its obligations under this Indenture to make payments in the
Required Currency (i) shall not be discharged or satisfied by any tender, or any
recovery pursuant to any judgment (whether or not entered in accordance with
clause (a)), in any currency other than the Required Currency, except to the
extent that such tender or recovery shall result in the actual receipt, by the
payee, of the full amount of the Required Currency expressed to be payable in
respect of such payments, (ii) shall be enforceable as an alternative or
additional cause of action for the purpose of recovering in the Required
Currency the amount, if any, by which such actual receipt shall fall short of
the full amount of the Required Currency so expressed to be payable and (iii)
shall not be affected by judgment being obtained for any other sum due under
this Indenture.  For purposes of the foregoing, "New York Banking Day" means any
day except

                                       21
<PAGE>

a Saturday, Sunday or a legal holiday in The City of New York or a day on which
banking institutions in The City of New York are authorized or obligated by law,
regulation or executive order to be closed.

     Section 1.18.  No Security Interest Created.

     Nothing in this Indenture or in any Securities, express or implied, shall
be construed to constitute a security interest under the Uniform Commercial Code
or similar legislation, as now or hereafter enacted and in effect in any
jurisdiction where property of the Company, the Guarantor or their respective
Subsidiaries is or may be located.

     Section 1.19.  Limitation on Individual Liability.

     No recourse under or upon any obligation, covenant or agreement contained
in this Indenture or in any Security, or for any claim based thereon or
otherwise in respect thereof, shall be had against any incorporator, shareholder
(except in a shareholder's corporate capacity as Guarantor), officer or
director, as such, past, present or future, of the Company or the Guarantor, as
the case may be, either directly or through the Company or the Guarantor, as the
case may be, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely
corporate obligations, and that no such personal liability whatever shall attach
to, or is or shall be incurred by, the incorporators, shareholders, officers or
directors, as such, of the Company or the Guarantor, as the case may be, or any
of them, because of the creation of the indebtedness hereby authorized, or under
or by reason of the obligations, covenants or agreements contained in this
Indenture or in any Security or implied therefrom; and that any and all such
personal liability of every name and nature, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, shareholder, officer or director, as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any Security or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of such Security.

     Section 1.20.  Submission to Jurisdiction.

     The Company and the Guarantor each agrees that any judicial proceedings
instituted in relation to any matter arising under this Indenture, the
Securities or any Coupons appertaining thereto may be brought in any United
States Federal or New York State court sitting in the Borough of Manhattan, The
City of New York, New York to the extent that such court has subject matter
jurisdiction over the controversy, and, by execution and delivery of this
Indenture, the Company and the Guarantor each hereby irrevocably accepts,
generally and unconditionally, the jurisdiction of the aforesaid courts,
acknowledges their competence and irrevocably agrees to be bound by any
judgement rendered in such proceeding. The Company and the Guarantor each also
irrevocably and unconditionally waives for the benefit of the Trustee and the
Holders of the Securities and Coupons any immunity from jurisdiction and any
immunity from legal process

                                       22
<PAGE>

(whether through service or notice, attachment prior to judgement, attachment in
the aid of execution, execution or otherwise) in respect of this Indenture. The
Company and the Guarantor each hereby irrevocably designates and appoints for
the benefit of the Trustee and the Holders of the Securities and Coupons for the
term of this Indenture ACE USA, Inc., 1133 Avenue of the Americas, 32nd Floor,
New York, New York 10036, as its agent to receive on its behalf service of all
process (with a copy of all such service of process to be delivered to Peter N.
Mear, General Counsel and Secretary, ACE Limited, The ACE Building, 30
Woodbourne Avenue, Hamilton, HM 08, Bermuda) brought against it with respect to
any such proceeding in any such court in The City of New York, such service
being hereby acknowledged by each of the Company and the Guarantor to be
effective and binding service on it in every respect whether or not the Company
or the Guarantor, as the case may be, shall then be doing or shall have at any
time done business in New York. Such appointment shall be irrevocable so long as
any of the Securities or Coupons or the respective obligations of the Company
and the Guarantor hereunder remain outstanding, or until the appointment of a
successor by the Company or the Guarantor, as the case may be, and such
successor's acceptance of such appointment. Upon such acceptance, the Company or
the Guarantor, as the case may be, shall notify the Trustee of the name and
address of such successor. The Company and the Guarantor each further agrees for
the benefit of the Trustee and the Holders of the Securities and the Coupons to
take any and all action, including the execution and filing of any and all such
documents and instruments, as may be necessary to continue such designation and
appointment of said ACE USA, Inc. in full force and effect so long as any of the
Securities or Coupons or the respective obligations of the Company and the
Guarantor hereunder shall be outstanding. The Trustee shall not be obligated and
shall have no responsibility with respect to any failure by the Company or the
Guarantor to take any such action. Nothing herein shall affect the right to
serve process in any other manner permitted by any law or limit the right of the
Trustee or any Holder to institute proceedings against the Company or the
Guarantor in the courts of any other jurisdiction or jurisdictions.

                                   ARTICLE 2

                                Securities Forms

     Section 2.1.  Forms Generally.

     Each Registered Security, Bearer Security, Coupon and temporary or
permanent global Security issued pursuant to this Indenture shall be in the form
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by or pursuant
to this Indenture or any indenture supplemental hereto and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Security or Coupon as evidenced by their execution of
such Security or Coupon.

                                       23
<PAGE>

     Unless otherwise provided in or pursuant to this Indenture or any
Securities, the Securities shall be issuable in registered form without Coupons
and shall not be issuable upon the exercise of warrants.

     Definitive Securities and definitive Coupons shall be printed, lithographed
or engraved or produced by any combination of these methods on a steel engraved
border or steel engraved borders or may be produced in any other manner, all as
determined by the officers of the Company executing such Securities or Coupons,
as evidenced by their execution of such Securities or Coupons.

     Section 2.2.  Form of Trustee's Certificate of Authentication.

     Subject to Section 6.11, the Trustee's certificate of authentication shall
be in substantially the following form:

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

                       BANK ONE TRUST COMPANY, NATIONAL
                       ASSOCIATION,
                             as Trustee

                       By
                         ------------------------------
                       Authorized Officer

     Section 2.3.  Securities in Global Form.

     Unless otherwise provided in or pursuant to this Indenture or any
Securities, the Securities shall not be issuable in temporary or permanent
global form.  If Securities of a series shall be issuable in global form, any
such Security may provide that it or any number of such Securities shall
represent the aggregate amount of all Outstanding Securities of such series (or
such lesser amount as is permitted by the terms thereof) from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges.  Any endorsement of any Security in global form to reflect
the amount, or any increase or decrease in the amount, or changes in the rights
of Holders, of Outstanding Securities represented thereby shall be made in such
manner and by such Person or Persons as shall be specified therein or in the
Company Order to be delivered pursuant to Section 3.3 or 3.4 with respect
thereto.  Subject to the provisions of Section 3.3 and, if applicable, Section
3.4, the Trustee shall deliver and redeliver, in each case at the Company's
expense, any Security in permanent global form in the manner and upon
instructions given by the Person or Persons specified therein or in the
applicable Company Order.  If a Company Order pursuant to Section 3.3 or 3.4 has
been, or simultaneously is, delivered, any instructions by the Company with
respect to a Security in global form shall be

                                       24
<PAGE>

in writing but need not be accompanied by or contained in an Officer's
Certificate and need not be accompanied by an Opinion of Counsel.

     Notwithstanding the provisions of Section 3.7, unless otherwise specified
in or pursuant to this Indenture or any Securities, payment of principal of, any
premium and interest on, and any Additional Amounts in respect of, any Security
in temporary or permanent global form shall be made to the Person or Persons
specified therein.

     Notwithstanding the provisions of Section 3.8 and except as provided in the
preceding paragraph, the Company, the Guarantor, the Trustee and any agent of
the Company, the Guarantor or the Trustee shall treat as the Holder of such
principal amount of Outstanding Securities represented by a global Security (i)
in the case of a global Security in registered form, the Holder of such global
Security in registered form, or (ii) in the case of a global Security in bearer
form, the Person or Persons specified pursuant to Section 3.1.

                                   ARTICLE 3

                                 The Securities

     Section 3.1.  Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one
or more series.  The Securities of each series shall be subordinated in right of
payment to all Company Senior Indebtedness with respect to such series as
provided in Article 16.  The Securities of each series shall be guaranteed by
the Guarantor, which Guarantee shall be subordinated in right of payment to all
Guarantor Senior Indebtedness with respect to such series as provided in Article
18.

     With respect to any Securities to be authenticated and delivered hereunder,
there shall be established in or pursuant to a Board Resolution and set forth in
an Officer's Certificate, or established in one or more indentures supplemental
hereto,

(1)  the title of such Securities and the series in which such Securities shall
     be included;
(2)  any limit upon the aggregate principal amount of the Securities of such
     title or the Securities of such series which may be authenticated and
     delivered under this Indenture (except for Securities authenticated and
     delivered upon registration of transfer of, or in exchange for, or in lieu
     of, other Securities of such series pursuant to Section 3.4, 3.5, 3.6, 9.5
     or 11.7, upon repayment in part of any Registered Security of such series
     pursuant to Article 13, upon surrender in part of any Registered Security
     for conversion into other securities of the Company or exchange for
     securities of the Guarantor or another issuer pursuant to its terms, or
     pursuant to or as contemplated by the terms of such Securities);

                                       25
<PAGE>

(3)  if such Securities are to be issuable as Registered Securities, as Bearer
     Securities or alternatively as Bearer Securities and Registered Securities,
     and whether the Bearer Securities are to be issuable with Coupons, without
     Coupons or both, and any restrictions applicable to the offer, sale or
     delivery of the Bearer Securities and the terms, if any, upon which Bearer
     Securities may be exchanged for Registered Securities and vice versa;
(4)  if any of such Securities are to be issuable in global form, when any of
     such Securities are to be issuable in global form and (i) whether such
     Securities are to be issued in temporary or permanent global form or both,
     (ii) whether beneficial owners of interests in any such global Security may
     exchange such interests for Securities of the same series and of like tenor
     and of any authorized form and denomination, and the circumstances under
     which any such exchanges may occur, if other than in the manner specified
     in Section 3.5, and (iii) the name of the Depository or the U.S.
     Depository, as the case may be, with respect to any such global Security;
(5)  if any of such Securities are to be issuable as Bearer Securities or in
     global form, the date as of which any such Bearer Security or global
     Security shall be dated (if other than the date of original issuance of the
     first of such Securities to be issued);
(6)  if any of such Securities are to be issuable as Bearer Securities, whether
     interest in respect of any portion of a temporary Bearer Security in global
     form payable in respect of an Interest Payment Date therefor prior to the
     exchange, if any, of such temporary Bearer Security for definitive
     Securities shall be paid to any clearing organization with respect to the
     portion of such temporary Bearer Security held for its account and, in such
     event, the terms and conditions (including any certification requirements)
     upon which any such interest payment received by a clearing organization
     will be credited to the Persons entitled to interest payable on such
     Interest Payment Date;
(7)  the date or dates, or the method or methods, if any, by which such date or
     dates shall be determined, on which the principal of such Securities is
     payable;
(8)  the rate or rates at which such Securities shall bear interest, if any, or
     the method or methods, if any, by which such rate or rates are to be
     determined, the rate or rates and the extent to which Additional Interest,
     if any, shall be payable in respect of such Securities, the date or dates,
     if any, from which such interest shall accrue or the method or methods, if
     any, by which such date or dates are to be determined, the Interest Payment
     Dates, if any, on which such interest shall be payable and the Regular
     Record Date, if any, for the interest payable on Registered Securities on
     any Interest Payment Date, the right, pursuant to Section 3.11 hereof or as
     otherwise set forth therein, of the Company to defer or extend an interest
     payment period and the duration of any such Extension Period, including the
     maximum consecutive period during which interest payment periods may be
     extended, whether and under what circumstances Additional Amounts on such
     Securities or any of them shall be payable, the notice, if any, to Holders
     regarding the determination of interest on a floating rate Security and the
     manner of

                                       26
<PAGE>

     giving such notice, and the basis upon which interest shall be calculated
     if other than that of a 360-day year of twelve 30-day months;
(9)  if in addition to or other than the Borough of Manhattan, The City of New
     York, the place or places where the principal of, any premium and interest
     on or any Additional Amounts with respect to such Securities shall be
     payable, any of such Securities that are Registered Securities may be
     surrendered for registration of transfer or exchange, any of such
     Securities may be surrendered for conversion or exchange and notices or
     demands to or upon the Company or the Guarantor in respect of such
     Securities and this Indenture may be served, the extent to which, or the
     manner in which, any interest payment or Additional Amounts on a global
     Security on an Interest Payment Date, will be paid and the manner in which
     any principal of or premium, if any, on any global Security will be paid;
(10) whether any of such Securities are to be redeemable at the option of the
     Company and, if so, the date or dates on which, the period or periods
     within which, the price or prices at which and the other terms and
     conditions upon which such Securities may be redeemed, in whole or in part,
     at the option of the Company;
(11) whether the Company is obligated to redeem or purchase any of such
     Securities pursuant to any sinking fund or analogous provision or at the
     option of any Holder thereof and, if so, the date or dates on which, the
     period or periods within which, the price or prices at which and the other
     terms and conditions upon which such Securities shall be redeemed or
     purchased, in whole or in part, pursuant to such obligation, and any
     provisions for the remarketing of such Securities so redeemed or purchased;
(12) the denominations in which any of such Securities that are Registered
     Securities shall be issuable if other than denominations of $1,000 and any
     integral multiple thereof, and the denominations in which any of such
     Securities that are Bearer Securities shall be issuable if other than the
     denomination of $5,000;
(13) whether the Securities of the series will be convertible into other
     securities of the Company and/or exchangeable for securities of the
     Guarantor or another issuer, and if so, the terms and conditions upon which
     such Securities will be so convertible or exchangeable, and any deletions
     from or modifications or additions to this Indenture to permit or to
     facilitate the issuance of such convertible or exchangeable Securities or
     the administration thereof;
(14) if other than the principal amount thereof, the portion of the principal
     amount of any of such Securities that shall be payable upon declaration of
     acceleration of the Maturity thereof pursuant to Section 5.2 or the method
     by which such portion is to be determined;

                                       27
<PAGE>

(15) if other than Dollars, the Foreign Currency in which payment of the
     principal of, any premium or interest on or any Additional Amounts with
     respect to any of such Securities shall be payable;
(16) if the principal of, any premium or interest on or any Additional Amounts
     with respect to any of such Securities are to be payable, at the election
     of the Company or a Holder thereof or otherwise, in Dollars or in a Foreign
     Currency other than that in which such Securities are stated to be payable,
     the date or dates on which, the period or periods within which, and the
     other terms and conditions upon which, such election may be made, and the
     time and manner of determining the exchange rate between the Currency in
     which such Securities are stated to be payable and the Currency in which
     such Securities or any of them are to be paid pursuant to such election,
     and any deletions from or modifications of or additions to the terms of
     this Indenture to provide for or to facilitate the issuance of Securities
     denominated or payable, at the election of the Company or a Holder thereof
     or otherwise, in a Foreign Currency;
(17) whether the amount of payments of principal of, any premium or interest
     on or any Additional Amounts with respect to such Securities may be
     determined with reference to an index, formula or other method or methods
     (which index, formula or method or methods may be based, without
     limitation, on one or more Currencies, commodities, equity securities,
     equity indices or other indices), and, if so, the terms and conditions upon
     which and the manner in which such amounts shall be determined and paid or
     payable;
(18) the relative degree, if any, to which Securities of such series and the
     Guarantee in respect thereof shall be senior to or be subordinated to other
     series of Securities and the Guarantee in respect thereof or other
     Indebtedness of the Company or the Guarantor, as the case may be, in right
     of payment, whether such other series of Securities or other Indebtedness
     is outstanding or not;
(19) any deletions from, modifications of or additions to the Events of
     Default or covenants of the Company or the Guarantor with respect to any of
     such Securities, whether or not such Events of Default or covenants are
     consistent with the Events of Default or covenants set forth herein;
(20) whether either or both of Section 4.2(2) relating to defeasance or
     Section 4.2(3) relating to covenant defeasance shall not be applicable to
     the Securities of such series, or any covenants in addition to those
     specified in Section 4.2(3) relating to the Securities of such series which
     shall be subject to covenant defeasance, and any deletions from, or
     modifications or additions to, the provisions of Article 4 in respect of
     the Securities of such series;
(21) the form or forms of the Trust Agreement (if different from the form
     attached hereto as Annex A), Amended and Restated Trust Agreement and
     Guarantee Agreement;

                                       28
<PAGE>

(22) whether any of such Securities are to be issuable upon the exercise of
     warrants, and the time, manner and place for such Securities to be
     authenticated and delivered;
(23) if any of such Securities are to be issuable in global form and are to be
     issuable in definitive form (whether upon original issue or upon exchange
     of a temporary Security) only upon receipt of certain certificates or other
     documents or satisfaction of other conditions, then the form and terms of
     such certificates, documents or conditions;
(24) if there is more than one Trustee, the identity of the Trustee and, if
     not the Trustee, the identity of each Security Registrar, Paying Agent or
     Authenticating Agent with respect to such Securities; and
(25) any other terms of such Securities and any other deletions from or
     modifications or additions to this Indenture in respect of such Securities.

     All Securities of any one series and all Coupons, if any, appertaining to
Bearer Securities of such series shall be substantially identical except as to
Currency of payments due thereunder, denomination and the rate of interest
thereon, or method of determining the rate of interest, if any, Maturity, and
the date from which interest, if any, shall accrue and except as may otherwise
be provided by the Company in or pursuant to the Board Resolution and set forth
in the Officer's Certificate or in any indenture or indentures supplemental
hereto pertaining to such series of Securities.  The terms of the Securities of
any series may provide, without limitation, that the Securities shall be
authenticated and delivered by the Trustee on original issue from time to time
upon written order of persons designated in the Officer's Certificate or
supplemental indenture and that such persons are authorized to determine,
consistent with such Officer's Certificate or any applicable supplemental
indenture, such terms and conditions of the Securities of such series as are
specified in such Officer's Certificate or supplemental indenture.  All
Securities of any one series need not be issued at the same time and, unless
otherwise so provided, a series may be reopened for issuances of additional
Securities of such series or to establish additional terms of such series of
Securities.

     If any of the terms of the Securities of any series shall be established by
action taken by or pursuant to a Board Resolution, the Board Resolution shall be
delivered to the Trustee at or prior to the delivery of the Officer's
Certificate setting forth the terms of such series.

     Section 3.2.  Currency; Denominations.

     Unless otherwise provided in or pursuant to this Indenture, the principal
of, any premium and interest on and any Additional Amounts with respect to the
Securities shall be payable in Dollars.  Unless otherwise provided in or
pursuant to this Indenture, Registered Securities denominated in Dollars shall
be issuable in registered form without Coupons in denominations of $1,000 and
any integral multiple thereof, and the Bearer Securities denominated in Dollars
shall be issuable in the denomination of $5,000.  Securities not denominated in
Dollars shall be

                                       29
<PAGE>

issuable in such denominations as are established with respect to such
Securities in or pursuant to this Indenture.

     Section 3.3.  Execution, Authentication, Delivery and Dating.

     Securities shall be executed on behalf of the Company by its Chairman of
the Board, a Vice Chairman, its President, its Treasurer or a Vice President
under its corporate seal reproduced thereon and attested by its Secretary or one
of its Assistant Secretaries.  Coupons shall be executed on behalf of the
Company by the Treasurer or any Assistant Treasurer of the Company.  The
signature of any of these officers on the Securities or any Coupons appertaining
thereto may be manual or facsimile.

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

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities, together with any Coupons
appertaining thereto, executed by the Company, to the Trustee for authentication
and, provided that the Board Resolution and Officer's Certificate or
supplemental indenture or indentures with respect to such Securities referred to
in Section 3.1 and a Company Order for the authentication and delivery of such
Securities have been delivered to the Trustee, the Trustee in accordance with
the Company Order and subject to the provisions hereof and of such Securities
shall authenticate and deliver such Securities.  In authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities and any Coupons appertaining thereto, the Trustee
shall be entitled to receive, and (subject to Sections 315(a) through 315(d) of
the Trust Indenture Act) shall be fully protected in relying upon,

     (1) an Opinion of Counsel to the effect that:

          (a) the form or forms and terms of such Securities and Coupons, if
     any, have been established in conformity with the provisions of this
     Indenture;

          (b) all conditions precedent to the authentication and delivery of
     such Securities and Coupons, if any, appertaining thereto, have been
     complied with and that such Securities and Coupons, when completed by
     appropriate insertions, executed under the Company's corporate seal and
     attested by duly authorized officers of the Company, delivered by duly
     authorized officers of the Company to the Trustee for authentication
     pursuant to this Indenture, and authenticated and delivered by the Trustee
     and issued by the Company in the manner and subject to any conditions
     specified in such Opinion of Counsel, will constitute legally valid and
     binding obligations of the Company, enforceable against the Company in
     accordance with their terms, except as enforcement thereof may be subject
     to or limited by bankruptcy, insolvency, reorganization,

                                       30
<PAGE>

     moratorium, arrangement, fraudulent conveyance, fraudulent transfer or
     other similar laws relating to or affecting creditors' rights generally,
     and subject to general principles of equity (regardless of whether
     enforcement is sought in a proceeding in equity or at law) and will entitle
     the Holders thereof to the benefits of this Indenture, including the
     Guarantee; such Opinion of Counsel need express no opinion as to the
     availability of equitable remedies;

         (c)  all laws and requirements in respect of the execution and delivery
     by the Company of such Securities and Coupons, if any, have been complied
     with; and

         (d) this Indenture has been qualified under the Trust Indenture Act;
     and

     (2) an Officer's Certificate and a Guarantor's Officer's Certificate, in
each case stating that, to the best knowledge of the Persons executing such
certificate, all conditions precedent to the execution, authentication and
delivery of such Securities and Coupons, if any, appertaining thereto, have been
complied with, and no event which is, or after notice or lapse of time would
become, an Event of Default with respect to any of the Securities shall have
occurred and be continuing.

     If all the Securities of any series are not to be issued at one time, it
shall not be necessary to deliver an Opinion of Counsel and an Officer's
Certificate and Guarantor's Officer's Certificate at the time of issuance of
each Security, but such opinion and certificates, with appropriate
modifications, shall be delivered at or before the time of issuance of the first
Security of such series.  After any such first delivery, any separate written
request by an Authorized Officer of the Company or any person designated in
writing by an Authorized Officer that the Trustee authenticate and deliver
Securities of such series for original issue will be deemed to be a
certification by the Company and the Guarantor that all conditions precedent
provided for in this Indenture relating to authentication and delivery of such
Securities continue to have been complied with and that no Event of Default with
respect to any of the Securities has occurred or is continuing.

     The Trustee shall not be required to authenticate or to cause an
Authenticating Agent to authenticate any Securities if the issue of such
Securities pursuant to this Indenture will affect the Trustee's own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner which is not reasonably acceptable to the Trustee or if the Trustee,
being advised by counsel, determines that such action may not lawfully be taken.

     Each Registered Security shall be dated the date of its authentication.
Each Bearer Security and any Bearer Security in global form shall be dated as of
the date specified in or pursuant to this Indenture.

     No Security or Coupon appertaining thereto shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose, unless there
appears on such Security a certificate of authentication substantially in the
form provided for in Section 2.2 or 6.11 executed by or on behalf of the Trustee
or by the Authenticating Agent by the manual signature of one of

                                       31
<PAGE>

its authorized officers. Such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder. Except as permitted by Section 3.6 or 3.7, the Trustee
shall not authenticate and deliver any Bearer Security unless all Coupons
appertaining thereto then matured have been detached and cancelled.

     Section 3.4.  Temporary Securities.

     Pending the preparation of definitive Securities, the Company may execute
and deliver to the Trustee and, upon Company Order, the Trustee shall
authenticate and deliver, in the manner provided in Section 3.3, temporary
Securities in lieu thereof which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form or, if authorized in or pursuant to this
Indenture, in bearer form with one or more Coupons or without Coupons and with
such appropriate insertions, omissions, substitutions and other variations as
the officers of the Company executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.  Such temporary
Securities may be in global form.

     Except in the case of temporary Securities in global form, which shall be
exchanged in accordance with the provisions thereof, if temporary Securities are
issued, the Company shall cause definitive Securities to be prepared without
unreasonable delay.  After the preparation of definitive Securities of the same
series and containing terms and provisions that are identical to those of any
temporary Securities, such temporary Securities shall be exchangeable for such
definitive Securities upon surrender of such temporary Securities at an Office
or Agency for such Securities, without charge to any Holder thereof.  Upon
surrender for cancellation of any one or more temporary Securities (accompanied
by any unmatured Coupons appertaining thereto), the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in or pursuant to this Indenture.  Unless otherwise provided in or
pursuant to this Indenture with respect to a temporary global Security, until so
exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
such series.

     Section 3.5.  Registration, Transfer and Exchange.

     With respect to the Registered Securities of each series, if any, the
Company shall cause to be kept a register (each such register being herein
sometimes referred to as the "Security Register") at an Office or Agency for
such series in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of the Registered
Securities of such series and of transfers of the Registered Securities of such
series.  Such Office or Agency shall be the "Security Registrar" for that series
of Securities.  Unless otherwise specified in or pursuant to this Indenture or
the Securities, the Trustee shall be the initial Security Registrar for

                                       32
<PAGE>

each series of Securities. The Company shall have the right to remove and
replace from time to time the Security Registrar for any series of Securities;
provided that no such removal or replacement shall be effective until a
successor Security Registrar with respect to such series of Securities shall
have been appointed by the Company and shall have accepted such appointment by
the Company. In the event that the Trustee shall not be or shall cease to be
Security Registrar with respect to a series of Securities, it shall have the
right to examine the Security Register for such series at all reasonable times.
There shall be only one Security Register for each series of Securities.

     Upon surrender for registration of transfer of any Registered Security of
any series at any Office or Agency for such series, the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Registered Securities of the same
series denominated as authorized in or pursuant to this Indenture, of a like
aggregate principal amount bearing a number not contemporaneously outstanding
and containing identical terms and provisions.

     At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series containing
identical terms and provisions, in any authorized denominations, and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any Office or Agency for such series.  Whenever any Registered Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive.

     If provided in or pursuant to this Indenture, with respect to Securities of
any series, at the option of the Holder, Bearer Securities of such series may be
exchanged for Registered Securities of such series containing identical terms,
denominated as authorized in or pursuant to this Indenture and in the same
aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any Office or Agency for such series, with all unmatured Coupons
and all matured Coupons in default thereto appertaining.  If the Holder of a
Bearer Security is unable to produce any such unmatured Coupon or Coupons or
matured Coupon or Coupons in default, such exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company,
the Guarantor and the Trustee in an amount equal to the face amount of such
missing Coupon or Coupons, or the surrender of such missing Coupon or Coupons
may be waived by the Company, the Guarantor and the Trustee if there is
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless.  If thereafter the Holder of such Bearer
Security shall surrender to any Paying Agent any such missing Coupon in respect
of which such a payment shall have been made, such Holder shall be entitled to
receive the amount of such payment; provided, however, that, except as otherwise
provided in Section 10.2, interest represented by Coupons shall be payable only
upon presentation and surrender of those Coupons at an Office or Agency for such
series located outside the United States.  Notwithstanding the foregoing, in
case a Bearer Security of any series is surrendered at any such Office or Agency
for such series in exchange for a Registered Security of such series and like
tenor after the close of business at such Office or Agency on (i) any

                                       33
<PAGE>

Regular Record Date and before the opening of business at such Office or Agency
on the next succeeding Interest Payment Date, or (ii) any Special Record Date
and before the opening of business at such Office or Agency on the related date
for payment of Defaulted Interest, such Bearer Security shall be surrendered
without the Coupon relating to such Interest Payment Date or proposed date of
payment, as the case may be (or, if such Coupon is so surrendered with such
Bearer Security, such Coupon shall be returned to the Person so surrendering the
Bearer Security), and interest or Defaulted Interest, as the case may be, shall
not be payable on such Interest Payment Date or proposed date for payment, as
the case may be, in respect of the Registered Security issued in exchange for
such Bearer Security, but shall be payable only to the Holder of such Coupon
when due in accordance with the provisions of this Indenture.

     If provided in or pursuant to this Indenture with respect to Securities of
any series, at the option of the Holder, Registered Securities of such series
may be exchanged for Bearer Securities upon such terms and conditions as may be
provided in or pursuant to this Indenture with respect to such series.

     Whenever any Securities are surrendered for exchange as contemplated by the
immediately preceding two paragraphs, the Company shall execute, and the Trustee
shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

     Notwithstanding the foregoing, except as otherwise provided in or pursuant
to this Indenture, any global Security shall be exchangeable for definitive
Securities only if (i) the Depository is at any time unwilling, unable or
ineligible to continue as depository and a successor depository is not appointed
by the Company within 90 days of the date the Company is so informed in writing,
(ii) the Company executes and delivers to the Trustee a Company Order to the
effect that such global Security shall be so exchangeable, or (iii) an Event of
Default has occurred and is continuing with respect to the Securities.  If the
beneficial owners of interests in a global Security are entitled to exchange
such interests for definitive Securities as the result of an event described in
clause (i), (ii) or (iii) of the preceding sentence, then without unnecessary
delay but in any event not later than the earliest date on which such interests
may be so exchanged, the Company shall deliver to the Trustee definitive
Securities in such form and denominations as are required by or pursuant to this
Indenture, and of the same series, containing identical terms and in aggregate
principal amount equal to the principal amount of such global Security, executed
by the Company.  On or after the earliest date on which such interests may be so
exchanged, such global Security shall be surrendered from time to time by the
U.S.  Depository or such other Depository as shall be specified in the Company
Order with respect thereto, and in accordance with instructions given to the
Trustee and the U.S. Depository or such other Depository, as the case may be
(which instructions shall be in writing but need not be contained in or
accompanied by an Officer's Certificate or be accompanied by an Opinion of
Counsel), as shall be specified in the Company Order with respect thereto to the
Trustee, as the Company's agent for such purpose, to be exchanged, in whole or
in part, for definitive Securities as described above without charge.  The
Trustee shall authenticate and make available for delivery, in exchange for each
portion of such surrendered global Security, a like aggregate

                                       34
<PAGE>

principal amount of definitive Securities of the same series of authorized
denominations and of like tenor as the portion of such global Security to be
exchanged, which (unless such Securities are not issuable both as Bearer
Securities and as Registered Securities, in which case the definitive Securities
exchanged for the global Security shall be issuable only in the form in which
the Securities are issuable, as provided in or pursuant to this Indenture) shall
be in the form of Bearer Securities or Registered Securities, or any combination
thereof, as shall be specified by the beneficial owner thereof, but subject to
the satisfaction of any certification or other requirements to the issuance of
Bearer Securities; provided, however, that no such exchanges may occur during a
period beginning at the opening of business 15 days before any selection of
Securities of the same series to be redeemed and ending on the relevant
Redemption Date; and provided, further, that (unless otherwise provided in or
pursuant to this Indenture) no Bearer Security delivered in exchange for a
portion of a global Security shall be mailed or otherwise delivered to any
location in the United States. Promptly following any such exchange in part,
such global Security shall be returned by the Trustee to such Depository or the
U.S. Depository, as the case may be, or such other Depository or U.S. Depository
referred to above in accordance with the instructions of the Company referred to
above. If a Registered Security is issued in exchange for any portion of a
global Security after the close of business at the Office or Agency for such
Security where such exchange occurs on or after (i) any Regular Record Date for
such Security and before the opening of business at such Office or Agency on the
next succeeding Interest Payment Date, or (ii) any Special Record Date for such
Security and before the opening of business at such Office or Agency on the
related proposed date for payment of interest or Defaulted Interest, as the case
may be, interest shall not be payable on such Interest Payment Date or proposed
date for payment, as the case may be, in respect of such Registered Security,
but shall be payable on such Interest Payment Date or proposed date for payment,
as the case may be, only to the Person to whom interest in respect of such
portion of such global Security shall be payable in accordance with the
provisions of this Indenture.

     All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company and the Guarantor,
respectively, evidencing the same debt and entitling the Holders thereof to the
same benefits under this Indenture as the Securities surrendered upon such
registration of transfer or exchange.

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

     No service charge shall be made for any registration of transfer or
exchange, or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge and any other
expenses (including fees and expenses of the Trustee) that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4, 9.5 or 11.7 not involving any transfer.

                                       35
<PAGE>

     Except as otherwise provided in or pursuant to this Indenture, the Company
shall not 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 mailing of a notice of redemption of Securities of like tenor and the
same series under Section 11.3 and ending at the close of business on the day of
such mailing, or (ii) to register the transfer of or exchange any Registered
Security selected for redemption in whole or in part, except in the case of any
Security to be redeemed in part, the portion thereof not to be redeemed, or
(iii) to exchange any Bearer Security selected for redemption except, to the
extent provided with respect to such Bearer Security, that such Bearer Security
may be exchanged for a Registered Security of like tenor and the same series,
provided that such Registered Security shall be immediately surrendered for
redemption with written instruction for payment consistent with the provisions
of this Indenture or (iv) to issue, register the transfer of or exchange any
Security which, in accordance with its terms, has been surrendered for repayment
at the option of the Holder, except the portion, if any, of such Security not to
be so repaid.

     Section 3.6.  Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security or a Security with a mutilated Coupon
appertaining to it is surrendered to the Trustee, subject to the provisions of
this Section 3.6, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons appertaining thereto corresponding
to the Coupons, if any, appertaining to the surrendered Security.

     If there be delivered to the Company, the Guarantor and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
or Coupon, and (ii) such security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the absence
of notice to the Company, the Guarantor or the Trustee that such Security or
Coupon has been acquired by a bona fide purchaser, the Company shall execute
and, upon the Company's request the Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Security or in exchange for the Security to which a destroyed, lost or stolen
Coupon appertains with all appurtenant Coupons not destroyed, lost or stolen, a
new Security of the same series containing identical terms and of like principal
amount and bearing a number not contemporaneously outstanding, with Coupons
appertaining thereto corresponding to the Coupons, if any, appertaining to such
destroyed, lost or stolen Security or to the Security to which such destroyed,
lost or stolen Coupon appertains.

     Notwithstanding the foregoing provisions of this Section 3.6, in case any
mutilated, destroyed, lost or stolen Security or Coupon has become or is about
to become due and payable, the Company in its discretion may, instead of issuing
a new Security, pay such Security or Coupon; provided, however, that payment of
principal of, any premium or interest on or any Additional Amounts with respect
to any Bearer Securities shall, except as otherwise provided in Section 10.2, be
payable only at an Office or Agency for such Securities located outside the
United States and, unless otherwise provided in or pursuant to this Indenture,
any interest

                                       36
<PAGE>

on Bearer Securities and any Additional Amounts with respect to
such interest shall be payable only upon presentation and surrender of the
Coupons appertaining thereto.

     Upon the issuance of any new Security under this Section 3.6, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

     Every new Security, with any Coupons appertaining thereto issued pursuant
to this Section 3.6 in lieu of any destroyed, lost or stolen Security, or in
exchange for a Security to which a destroyed, lost or stolen Coupon appertains
shall constitute a separate obligation of the Company and the Guarantor, whether
or not the destroyed, lost or stolen Security and Coupons appertaining thereto
or the destroyed, lost or stolen Coupon shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of such series and any
Coupons, if any, duly issued hereunder.

     The provisions of this Section 3.6, as amended or supplemented pursuant to
this Indenture with respect to particular Securities or generally, shall be
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities or Coupons.

     Section 3.7.  Payment of Interest and Certain Additional Amounts; Rights to
Interest and Certain Additional Amounts Preserved.

     Unless otherwise provided in or pursuant to this Indenture, any interest on
and any Additional Amounts with respect to any Registered Security which shall
be payable, and are punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name such Security (or one or
more Predecessor Securities) is registered as of the close of business on the
Regular Record Date for such interest.

     Unless otherwise provided in or pursuant to this Indenture, any interest on
and any Additional Amounts with respect to any Registered Security which shall
be payable, but shall not be punctually paid or duly provided for, on any
Interest Payment Date for such Registered Security (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder; and such
Defaulted Interest may be paid by the Company or the Guarantor, at its election
in each case, as provided in Clause (1) or (2) below:

          (1) The Company or the Guarantor, as the case may be, may elect to
     make payment of any Defaulted Interest to the Person in whose name such
     Registered Security (or a Predecessor Security thereof) shall be registered
     at the close of business on a Special Record Date for the payment of such
     Defaulted Interest, which shall be fixed by the Company in the following
     manner. The Company or the Guarantor, as the case may be, shall notify the
     Trustee in writing of the amount of Defaulted Interest proposed to be paid
     on such Registered Security, the Special Record Date therefor and the date
     of the
                                       37
<PAGE>

     proposed payment, and at the same time the Company or the Guarantor,
     as the case may be, shall deposit with the Trustee an amount of money equal
     to the aggregate amount proposed to be paid in respect of such Defaulted
     Interest or shall make arrangements satisfactory to the Trustee for such
     deposit on or prior to the date of the proposed payment, such money when so
     deposited to be held in trust for the benefit of the Person entitled to
     such Defaulted Interest as in this Clause provided. The Special Record Date
     for the payment of such Defaulted Interest shall be not more than 15 days
     and not less than 10 days prior to the date of the proposed payment and not
     less than 10 days after notification to the Trustee of the proposed
     payment. The Trustee shall, in the name and at the expense of the Company
     or the Guarantor, cause notice of the proposed payment of such Defaulted
     Interest and the Special Record Date therefor to be mailed, first-class
     postage prepaid, to the Holder of such Registered Security (or a
     Predecessor Security thereof) at his address as it appears in the Security
     Register not less than 10 days prior to such Special Record Date.  The
     Trustee may, in its discretion, in the name and at the expense of the
     Company or the Guarantor, cause a similar notice to be published at least
     once in an Authorized Newspaper of general circulation in the Borough of
     Manhattan, The City of New York, but such publication shall not be a
     condition precedent to the establishment of such Special Record Date.
     Notice of the proposed payment of such Defaulted Interest and the Special
     Record Date therefor having been mailed as aforesaid, such Defaulted
     Interest shall be paid to the Person in whose name such Registered Security
     (or a Predecessor Security thereof) shall be registered at the close of
     business on such Special Record Date and shall no longer be payable
     pursuant to the following clause (2).

           (2) The Company or the Guarantor, as the case may be, may make
     payment of any Defaulted Interest in any other lawful manner not
     inconsistent with the requirements of any securities exchange on which such
     Security may be listed, and upon such notice as may be required by such
     exchange, if, after notice given by the Company or the Guarantor, as the
     case may be, to the Trustee of the proposed payment pursuant to this
     Clause, such payment shall be deemed practicable by the Trustee.

     Unless otherwise provided in or pursuant to this Indenture or the
Securities of any particular series pursuant to the provisions of this
Indenture, at the option of the Company or the Guarantor, interest on Registered
Securities that bear interest may be paid by mailing a check to the address of
the Person entitled thereto as such address shall appear in the Security
Register or by transfer to an account maintained by the payee with a bank
located in the United States.

     Subject to the foregoing provisions of this Section and Section 3.5, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

     In the case of any Registered Security of any series that is convertible
into other securities of the Company or exchangeable for securities of the
Guarantor or another issuer,

                                       38
<PAGE>

which Registered Security is converted or exchanged after any Regular Record
Date and on or prior to the next succeeding Interest Payment Date (other than
any Registered Security with respect to which the Stated Maturity is prior to
such Interest Payment Date), interest with respect to which the Stated Maturity
is on such Interest Payment Date shall be payable on such Interest Payment Date
notwithstanding such conversion or exchange, and such interest (whether or not
punctually paid or duly provided for) shall be paid to the Person in whose name
that Registered Security (or one or more predecessor Registered Securities) is
registered at the close of business on such Regular Record Date. Except as
otherwise expressly provided in the immediately preceding sentence, in the case
of any Registered Security which is converted or exchanged, interest with
respect to which the Stated Maturity is after the date of conversion or exchange
of such Registered Security shall not be payable.

     Section 3.8.  Persons Deemed Owners.

     Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Guarantor, the Trustee and any agent of the Company
or the Guarantor or the Trustee may treat the Person in whose name such
Registered Security is registered in the Security Register as the owner of such
Registered Security for the purpose of receiving payment of principal of, any
premium and (subject to Sections 3.5 and 3.7) interest on and any Additional
Amounts with respect to such Registered Security and for all other purposes
whatsoever, whether or not any payment with respect to such Registered Security
shall be overdue, and none of the Company, the Guarantor, the Trustee or any
agent of the Company, the Guarantor or the Trustee shall be affected by notice
to the contrary.

     The Company, the Guarantor, the Trustee and any agent of the Company, the
Guarantor or the Trustee may treat the bearer of any Bearer Security or the
bearer of any Coupon as the absolute owner of such Security or Coupon for the
purpose of receiving payment thereof or on account thereof and for all other
purposes whatsoever, whether or not any payment with respect to such Security or
Coupon shall be overdue, and none of the Company, the Guarantor, the Trustee or
any agent of the Company, the Guarantor or the Trustee shall be affected by
notice to the contrary.

     No Holder of any beneficial interest in any global Security held on its
behalf by a Depository shall have any rights under this Indenture with respect
to such global Security, and such Depository may be treated by the Company, the
Guarantor, the Trustee, and any agent of the Company, the Guarantor or the
Trustee as the owner of such global Security for all purposes whatsoever.  None
of the Company, the Guarantor, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

     Section 3.9.  Cancellation.

     All Securities and Coupons surrendered for payment, redemption,
registration of transfer, exchange or conversion or for credit against any
sinking fund payment shall, if surrendered to

                                       39
<PAGE>

any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and Coupons, as well as Securities and Coupons surrendered directly
to the Trustee for any such purpose, shall be cancelled promptly by the Trustee.
The Company or the Guarantor may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company or the Guarantor may have acquired in any manner whatsoever,
and all Securities so delivered shall be cancelled promptly by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by or
pursuant to this Indenture. All cancelled Securities and Coupons held by the
Trustee shall be destroyed by the Trustee, unless by a Company Order or
Guarantor Order the Company or the Guarantor, as the case may be, directs their
return to it.

     Section 3.10.  Computation of Interest.

     Except as otherwise provided in or pursuant to this Indenture or in any
Security, interest on the Securities shall be computed on the basis of a 360-day
year of twelve 30-day months.

     Section 3.11.  Extension of Interest Payment Period.

     If specified as contemplated by Section 3.1 with respect to the Securities
of a particular series and subject to the terms, conditions and covenants, if
any, so specified, the Company shall have the right, at any time and from time
to time during the term of such series, to defer the payment of interest on such
Securities for such period or periods as may be specified as contemplated by
Section 3.1 (each, an "Extension Period"), during which Extension Periods the
Company shall have the right to make partial payments of interest on any
Interest Payment Date.  No Extension Period shall end on a day other than an
Interest Payment Date.  At the end of any such Extension Period, the Company
shall pay all interest then accrued and unpaid on the Securities (together with
Additional Interest thereon, if any, at the rate specified for the Securities of
such series to the extent permitted by applicable law).  Prior to the
termination of any such Extension Period, the Company may further extend the
interest payment period, provided that no Extension Period shall exceed the
period or periods specified in such Securities or extend beyond the Stated
Maturity of the principal of such Securities.  Upon termination of any Extension
Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Company may elect
to begin a new Extension Period, subject to the above requirements.  No interest
shall be due and payable during an Extension Period, except at the end thereof.

     The Company shall give the Holders of the Securities of such series and the
Trustee notice of its election to begin any such Extension Period at least one
Business Day prior to the Interest Payment Date or, with respect to the
Securities of a series issued to an ACE Trust, prior to the earlier of (i) the
date the Distributions on the Preferred Securities of such ACE Trust are payable
or (ii) the date the trustees of such ACE Trust are required to give notice to
any securities exchange or other applicable self-regulatory organization or to
holders of such Preferred Securities of the record date or the date such
Distributions are payable, but in any event not less than one Business Day prior
to such record date.

                                       40
<PAGE>

     The Trustee shall promptly give notice of the Company's election to begin
any such Extension Period to the Holders of the outstanding Securities of such
series.

     Section 3.12.  Right of Set-Off.

     With respect to the Securities of a series issued to an ACE Trust,
notwithstanding anything to the contrary in this Indenture, the Company or the
Guarantor, as applicable, shall each have the right to set-off any payment it is
otherwise required to make thereunder in respect of any such Security to the
extent the Company or the Guarantor, as applicable, has theretofore made, or is
concurrently on the date of such payment making, a payment under the Preferred
Securities Guarantee relating to such Security or under Section 5.8 hereof, as
applicable.

     Section 3.13.  Agreed Tax Treatment.

     Each Security issued hereunder shall provide that the Company, the
Guarantor and, by its acceptance of a Security or a beneficial interest therein,
the Holder of, and any Person that acquires a beneficial interest in, such
Security agree that for United States Federal, state and local tax purposes it
is intended that such Security constitute indebtedness.

     Section 3.14.  Extension of Stated Maturity; Adjustment of Stated Maturity
Upon an Exchange.

     If specified as contemplated by Section 3.1 with respect to the Securities
of a particular series, the Company shall have the right to (a) change the
Stated Maturity of the principal of the Securities of such series upon the
dissolution of the applicable ACE Trust and the exchange of such Securities for
the Preferred Securities of such ACE Trust, or (b) extend the Stated Maturity of
the principal of the Securities of such series; provided that, at the time any
election to extend such Stated Maturity is made and at the time of such
extension, (i) neither the Company nor the Guarantor is in bankruptcy, otherwise
insolvent or in liquidation, (ii) neither the Company nor the Guarantor is in
default in the payment of any interest or principal or Additional Amounts on the
Securities of such series or under the Guarantee in respect thereof, as the case
may be, and no deferred interest payments thereon have accrued, (iii) the
applicable ACE Trust is not in arrears on payments of Distributions on its
Preferred Securities and no deferred Distributions thereon have accumulated,
(iv) the Securities of such series are rated not less than BBB- by Standard &
Poor's Ratings Services or Baa3 by Moody's Investors Service, Inc. or the
equivalent by any other nationally recognized statistical rating organization
and (v) the extended Stated Maturity is no later than the 49th anniversary of
the initial issuance of the Preferred Securities of the applicable ACE Trust;
provided, further, that, if the Company exercises its right to dissolve the
applicable ACE Trust and exchange the Securities of such series for the
Preferred Securities of such ACE Trust as specified in clause (a) above, any
changed Stated Maturity of the principal of the Securities of such series shall
be no earlier than the date that is five years after the initial issue date of
the Preferred Securities and no later than the date 30 years (plus an extended
term of up to an additional 19 years if the above-referenced conditions are
satisfied) after the initial issue date of the Preferred Securities of the
applicable ACE Trust.

                                       41
<PAGE>

                                   ARTICLE 4

                    Satisfaction and Discharge of Indenture

     Section 4.1.  Satisfaction and Discharge.

     Upon the direction of the Company by a Company Order or of the Guarantor by
a Guarantor Order, this Indenture shall cease to be of further effect with
respect to any series of Securities specified in such Company Order or Guarantor
Order and any Coupons appertaining thereto, and the Trustee, on receipt of a
Company Order or a Guarantor Order, at the expense of the Company and the
Guarantor, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture as to such series, when

             (1)   either

                   (a) all Securities of such series theretofore authenticated
             and delivered and all Coupons appertaining thereto (other than (i)
             Coupons appertaining to Bearer Securities of such series
             surrendered in exchange for Registered Securities of such series
             and maturing after such exchange whose surrender is not required or
             has been waived as provided in Section 3.5, (ii) Securities and
             Coupons of such series which have been destroyed, lost or stolen
             and which have been replaced or paid as provided in Section 3.6,
             (iii) Coupons appertaining to Securities of such series called for
             redemption and maturing after the relevant Redemption Date whose
             surrender has been waived as provided in Section 11.7, and (iv)
             Securities and Coupons of such series for whose payment money has
             theretofore been deposited in trust or segregated and held in trust
             by the Company or the Guarantor and thereafter repaid to the
             Company or the Guarantor, as the case may be, or discharged from
             such trust, as provided in Section 10.3) have been delivered to the
             Trustee for cancellation; or

                   (b) all Securities of such series and, in the case of (i) or
             (ii) below, any Coupons appertaining thereto not theretofore
             delivered to the Trustee for cancellation (i) have become due and
             payable, or (ii) will become due and payable at their Stated
             Maturity within one year, or (iii) if redeemable at the option of
             the Company, are to be called for redemption within one year under
             arrangements satisfactory to the Trustee for the giving of notice
             of redemption by the Trustee in the name, and at the expense, of
             the Company and the Guarantor,

and the Company or the Guarantor, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for
such purpose, money in the Currency in which such Securities are payable in an
amount sufficient to pay and discharge the entire indebtedness on such
Securities and any Coupons appertaining thereto not theretofore delivered to the
Trustee for cancellation, including the principal of, any premium and interest
(including any Additional Interest) on, and any Additional Amounts with respect
to such Securities and any

                                       42
<PAGE>

Coupons appertaining thereto, to the date of such deposit (in the case of
Securities which have become due and payable) or to the Maturity thereof, as the
case may be;

          (2) the Company or the Guarantor has paid or caused to be paid all
     other sums payable hereunder by the Company and the Guarantor with respect
     to the Outstanding Securities of such series and any Coupons appertaining
     thereto; and

          (3) the Company has delivered to the Trustee an Officer's Certificate
     and an Opinion of Counsel and the Guarantor has delivered to the Trustee a
     Guarantor's Officer's Certificate, each stating that all conditions
     precedent herein provided for relating to the satisfaction and discharge of
     this Indenture as to such series have been complied with.

     In the event there are Securities of two or more series hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee and if the other conditions
thereto are met.

     Notwithstanding the satisfaction and discharge of this Indenture with
respect to any series of Securities, the obligations of the Company and the
Guarantor to the Trustee under Section 6.6 and, if money shall have been
deposited with the Trustee pursuant to subclause (b) of clause (1) of this
Section, the obligations of the Company, the Guarantor and the Trustee with
respect to the Securities of such series under Sections 3.5, 3.6, 4.3, 10.2 and
10.3, with respect to the payment of Additional Amounts, if any, with respect to
such Securities as contemplated by Sections 10.4 and 17.2 (but only to the
extent that the Additional Amounts payable with respect to such Securities
exceed the amount deposited in respect of such Additional Amounts pursuant to
Section 4.1(1)(b)), and with respect to any rights to convert or exchange such
Securities into securities of the Company or the Guarantor or another issuer
shall survive.

     Section 4.2.  Defeasance and Covenant Defeasance.

          (1) Unless pursuant to Section 3.1, either or both of (i) defeasance
     of the Securities of or within a series under clause (2) of this Section
     4.2 shall not be applicable with respect to the Securities of such series
     or (ii) covenant defeasance of the Securities of or within a series under
     clause (3) of this Section 4.2 shall not be applicable with respect to the
     Securities of such series, then such provisions, together with the other
     provisions of this Section 4.2 (with such modifications thereto as may be
     specified pursuant to Section 3.1 with respect to any Securities), shall be
     applicable to such Securities and any Coupons appertaining thereto, and the
     Company may at its option by Board Resolution, at any time, with respect to
     such Securities and any Coupons appertaining thereto, elect to have Section
     4.2(2) or Section 4.2(3) be applied to such Outstanding Securities and any
     Coupons appertaining thereto upon compliance with the conditions set forth
     below in this Section 4.2.

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<PAGE>

          (2) Upon the Company's exercise of the above option applicable to this
     Section 4.2(2) with respect to any Securities of or within a series, the
     Company and the Guarantor shall be deemed to have been discharged from its
     obligations with respect to such Outstanding Securities and any Coupons
     appertaining thereto and under the Guarantee in respect thereof,
     respectively, on the date the conditions set forth in clause (4) of this
     Section 4.2 are satisfied (hereinafter, "defeasance"). For this purpose,
     such defeasance means that the Company or the Guarantor shall be deemed to
     have paid and discharged the entire Indebtedness represented by such
     Outstanding Securities and any Coupons appertaining thereto, and under the
     Guarantee in respect thereof, which shall thereafter be deemed to be
     "Outstanding" only for the purposes of clause (5) of this Section 4.2 and
     the other Sections of this Indenture referred to in clauses (i) and (ii)
     below, and to have satisfied all of its other obligations under such
     Securities and any Coupons appertaining thereto, and under the Guarantee in
     respect thereof, and this Indenture insofar as such Securities and any
     Coupons appertaining thereto, and the Guarantee in respect thereof, are
     concerned (and the Trustee, at the expense of the Company and the
     Guarantor, shall execute proper instruments acknowledging the same), except
     for the following which shall survive until otherwise terminated or
     discharged hereunder: (i) the rights of Holders of such Outstanding
     Securities and any Coupons appertaining thereto to receive, solely from the
     trust fund described in clause (4) of this Section 4.2 and as more fully
     set forth in such clause, payments in respect of the principal of (and
     premium, if any) and interest (including any Additional Interest), if any,
     on, and Additional Amounts, if any, with respect to, such Securities and
     any Coupons appertaining thereto when such payments are due, and any rights
     of such Holder to convert such Securities into other securities of the
     Company or exchange such Securities for securities of the Guarantor or
     another issuer, (ii) the obligations of the Company, the Guarantor and the
     Trustee with respect to such Securities under Sections 3.5, 3.6, 10.2 and
     10.3 and with respect to the payment of Additional Amounts, if any, on such
     Securities as contemplated by Sections 10.4 and 17.2 (but only to the
     extent that the Additional Amounts payable with respect to such Securities
     exceed the amount deposited in respect of such Additional Amounts pursuant
     to Section 4.2(4)(a) below), and with respect to any rights to convert such
     Securities into other securities of the Company or exchange such Securities
     for securities of the Guarantor or another issuer, (iii) the rights,
     powers, trusts, duties and immunities of the Trustee hereunder and (iv)
     this Section 4.2. The Company may exercise its option under this Section
     4.2(2) notwithstanding the prior exercise of its option under clause (3) of
     this Section 4.2 with respect to such Securities and any Coupons
     appertaining thereto.

          (3) Upon the Company's exercise of the option to have this Section
     4.2(3) apply with respect to any Securities of or within a series, the
     Company and the Guarantor shall be released from their obligations under
     any covenant applicable to such Securities specified pursuant to Section
     3.1(20), with respect to such Outstanding Securities and any Coupons
     appertaining thereto, and the Guarantee in respect thereof, on and after
     the date the conditions set forth in clause (4) of this Section 4.2 are
     satisfied (hereinafter, "covenant defeasance"), and such Securities and any
     Coupons appertaining thereto shall

                                      44
<PAGE>

     thereafter be deemed to be not "Outstanding" for the purposes of any
     direction, waiver, consent or declaration or Act of Holders (and the
     consequences of any thereof) in connection with any such covenant, but
     shall continue to be deemed "Outstanding" for all other purposes hereunder.
     For this purpose, such covenant defeasance means that, with respect to such
     Outstanding Securities and any Coupons appertaining thereto, the Company
     and the Guarantor may omit to comply with, and shall have no liability in
     respect of, any term, condition or limitation set forth in any such Section
     or such other covenant, whether directly or indirectly, by reason of any
     reference elsewhere herein to any such Section or such other covenant or by
     reason of reference in any such Section or such other covenant to any other
     provision herein or in any other document and such omission to comply shall
     not constitute a default or an Event of Default under Section 5.1(4) or
     5.1(9) or otherwise, as the case may be, but, except as specified above,
     the remainder of this Indenture and such Securities and Coupons
     appertaining thereto and the Guarantee in respect thereof shall be
     unaffected thereby.

          (4) The following shall be the conditions to application of clause (2)
     or (3) of this Section 4.2 to any Outstanding Securities of or within a
     series and any Coupons appertaining thereto and the Guarantee in respect
     thereof:

              (a) The Company or the Guarantor shall irrevocably have deposited
          or caused to be deposited with the Trustee (or another trustee
          satisfying the requirements of Section 6.7 who shall agree to comply
          with the provisions of this Section 4.2 applicable to it) as trust
          funds in trust for the purpose of making the following payments,
          specifically pledged as security for, and dedicated solely to, the
          benefit of the Holders of such Securities and any Coupons appertaining
          thereto, (1) an amount in Dollars or in such Foreign Currency in which
          such Securities and any Coupons appertaining thereto are then
          specified as payable at Stated Maturity, or (2) Government Obligations
          applicable to such Securities and Coupons appertaining thereto
          (determined on the basis of the Currency in which such Securities and
          Coupons appertaining thereto are then specified as payable at Stated
          Maturity) which through the scheduled payment of principal and
          interest in respect thereof in accordance with their terms will
          provide, not later than one day before the due date of any payment of
          principal of (and premium, if any) and interest (including any
          Additional Interest), if any, on such Securities and any Coupons
          appertaining thereto, money in an amount, or (3) a combination
          thereof, in any case, in an amount, sufficient, without consideration
          of any reinvestment of such principal and interest, in the opinion of
          a nationally recognized firm of independent public accountants
          expressed in a written certification thereof delivered to the Trustee,
          to pay and discharge, and which shall be applied by the Trustee (or
          other qualifying trustee) to pay and discharge, (y) the principal of
          (and premium, if any) and interest (including any Additional
          Interest), if any, on such Outstanding Securities and any Coupons
          appertaining thereto at the Stated Maturity of such principal or
          installment of principal or premium or interest and (z) any mandatory
          sinking fund payments or analogous payments applicable to

                                       45
<PAGE>

          such Outstanding Securities and any Coupons appertaining thereto on
          the days on which such payments are due and payable in accordance with
          the terms of this Indenture and of such Securities and any Coupons
          appertaining thereto.

               (b) Such defeasance or covenant defeasance shall not result in a
          breach or violation of, or constitute a default under, this Indenture
          or any other material agreement or instrument to which the Company or
          the Guarantor is a party or by which either of them is bound.

               (c) No Event of Default or event which with notice or lapse of
          time or both would become an Event of Default with respect to such
          Securities and any Coupons appertaining thereto shall have occurred
          and be continuing on the date of such deposit and, with respect to
          defeasance only, at any time during the period ending on the 123rd day
          after the date of such deposit (it being understood that this
          condition shall not be deemed satisfied until the expiration of such
          period).

               (d) In the case of an election under clause (2) of this Section
          4.2, the Company or the Guarantor shall have delivered to the Trustee
          an Opinion of Counsel stating that (i) the Company or the Guarantor
          has received from the Internal Revenue Service a letter ruling, or
          there has been published by the Internal Revenue Service a Revenue
          Ruling, or (ii) since the date of execution of this Indenture, there
          has been a change in the applicable Federal income tax law, in either
          case to the effect that, and based thereon such opinion shall confirm
          that, the Holders of such Outstanding Securities and any Coupons
          appertaining thereto will not recognize income, gain or loss for
          Federal income tax purposes as a result of such defeasance and will be
          subject to Federal income tax on the same amounts, in the same manner
          and at the same times as would have been the case if such defeasance
          had not occurred.

               (e) In the case of an election under clause (3) of this Section
          4.2, the Company or the Guarantor shall have delivered to the Trustee
          an Opinion of Counsel to the effect that the Holders of such
          Outstanding Securities and any Coupons appertaining thereto will not
          recognize income, gain or loss for Federal income tax purposes as a
          result of such covenant defeasance and will be subject to Federal
          income tax on the same amounts, in the same manner and at the same
          times as would have been the case if such covenant defeasance had not
          occurred.

               (f) The Company or the Guarantor shall have delivered to the
          Trustee an Opinion of Counsel to the effect that, after the 123rd day
          after the date of deposit, all money and Government Obligations (or
          other property as may be provided pursuant to Section 3.1) (including
          the proceeds thereof) deposited or caused to be deposited with the
          Trustee (or other qualifying trustee) pursuant to this clause (4) to
          be held in trust will not be subject to any case or proceeding
          (whether voluntary or involuntary) in respect of the Company or the
          Guarantor under any Federal or State bankruptcy, insolvency,
          reorganization or other similar

                                       46
<PAGE>

          law, or any decree or order for relief in respect of the Company or
          the Guarantor issued in connection therewith .

               (g) The Company and the Guarantor shall have delivered to the
          Trustee an Officer's Certificate and a Guarantor's Officer's
          Certificate and the Company or the Guarantor shall have delivered to
          the Trustee an Opinion of Counsel, each stating that all conditions
          precedent to the defeasance or covenant defeasance under clause (2) or
          (3) of this Section 4.2 (as the case may be) have been complied with.

               (h) Notwithstanding any other provisions of this Section 4.2(4),
          such defeasance or covenant defeasance shall be effected in compliance
          with any additional or substitute terms, conditions or limitations
          which may be imposed on the Company or the Guarantor in connection
          therewith pursuant to Section 3.1.

          (5) Unless otherwise specified in or pursuant to this Indenture or any
     Security, if, after a deposit referred to in Section 4.2(4)(a) has been
     made, (a) the Holder of a Security in respect of which such deposit was
     made is entitled to, and does, elect pursuant to Section 3.1 or the terms
     of such Security to receive payment in a Currency other than that in which
     the deposit pursuant to Section 4.2(4)(a) has been made in respect of such
     Security, or (b) a Conversion Event occurs in respect of the Foreign
     Currency in which the deposit pursuant to Section 4.2(4)(a) has been made,
     the indebtedness represented by such Security and any Coupons appertaining
     thereto shall be deemed to have been, and will be, fully discharged and
     satisfied through the payment of the principal of (and premium, if any),
     and interest (including any Additional Interest), if any, on, and
     Additional Amounts, if any, with respect to, such Security as the same
     becomes due out of the proceeds yielded by converting (from time to time as
     specified below in the case of any such election) the amount or other
     property deposited in respect of such Security into the Currency in which
     such Security becomes payable as a result of such election or Conversion
     Event based on (x) in the case of payments made pursuant to clause (a)
     above, the applicable market exchange rate for such Currency in effect on
     the second Business Day prior to each payment date, or (y) with respect to
     a Conversion Event, the applicable market exchange rate for such Foreign
     Currency in effect (as nearly as feasible) at the time of the Conversion
     Event.

     The Company and the Guarantor (without duplication) shall pay and indemnify
the Trustee (or other qualifying trustee, collectively for purposes of this
Section 4.2(5) and Section 4.3, the "Trustee") against any tax, fee or other
charge, imposed on or assessed against the Government Obligations deposited
pursuant to this Section 4.2 or the principal or interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Securities and any Coupons
appertaining thereto.

     Anything in this Section 4.2 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request, or
the Guarantor upon Guarantor Request, as the case may be, any money or
Government Obligations (or other property and any

                                       47
<PAGE>

proceeds therefrom) held by it as provided in clause (4) of this Section 4.2
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect a defeasance or covenant defeasance, as applicable, in
accordance with this Section 4.2.

     Section 4.3.  Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all
money and Government Obligations (or other property as may be provided pursuant
to Section 3.1) (including the proceeds thereof) deposited with the Trustee
pursuant to Section 4.1 or 4.2 in respect of any Outstanding Securities of any
series and any Coupons appertaining thereto shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Securities and any
Coupons appertaining thereto and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying
Agent or the Guarantor acting as Paying Agent) as the Trustee may determine, to
the Holders of such Securities and any Coupons appertaining thereto of all sums
due and to become due thereon in respect of principal (and premium, if any) and
interest (including any Additional Interest) and Additional Amounts, if any; but
such money and Government Obligations need not be segregated from other funds
except to the extent required by law.

                                   ARTICLE 5

                                    Remedies

     Section 5.1.  Events of Default.

     "Event of Default," wherever used herein with respect to Securities of
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body),
unless such event is specifically deleted or modified in or pursuant to the
supplemental indenture, Board Resolution or Officer's Certificate establishing
the terms of such Series pursuant to this Indenture:

          (1) default in the payment of any interest on any Security of such
     series, including any Additional Interest in respect thereof, or any
     Additional Amounts payable with respect thereto, when such interest becomes
     or such Additional Amounts become due and payable, and continuance of such
     default for a period of 30 days (subject to any deferral of any due date in
     the case of an Extension Period); or

          (2) default in the payment of the principal of or any premium on any
     Security of such series, or any Additional Amounts payable with respect
     thereto, when such principal or premium becomes or such Additional Amounts
     become due and payable at their Maturity; or

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<PAGE>

          (3) default in the deposit of any sinking fund payment when and as due
     by the terms of a Security of such series; or

          (4) default in the performance, or breach, of any covenant or warranty
     of the Company or the Guarantor in this Indenture or the Securities (other
     than a covenant or warranty a default in the performance or the breach of
     which is elsewhere in this Section specifically dealt with or which has
     been expressly included in this Indenture solely for the benefit of a
     series of Securities other than such series), and continuance of such
     default or breach for a period of 60 days after there has been given, by
     registered or certified mail, to the Company and the Guarantor by the
     Trustee or to the Company, the Guarantor and the Trustee by the Holders of
     at least 25% in principal amount of the Outstanding Securities of such
     series or, if that series of Securities is held by an ACE Trust, the
     holders of at least 25% in liquidation amount of the Preferred Securities
     of that ACE Trust then outstanding, a written notice specifying such
     default or breach and requiring it to be remedied and stating that such
     notice is a "Notice of Default" hereunder; or

          (5) if any event of default as defined in any mortgage, indenture or
     instrument under which there may be issued, or by which there may be
     secured or evidenced, any Indebtedness of the Company or the Guarantor
     (including, in each case, an Event of Default under any other series of
     Securities), whether such Indebtedness now exists or shall hereafter be
     created or incurred, shall happen and shall consist of default in the
     payment of more than $50,000,000 in principal amount of such Indebtedness
     at the maturity thereof (after giving effect to any applicable grace
     period) or shall result in such Indebtedness in principal amount in excess
     of $50,000,000 becoming or being declared due and payable prior to the date
     on which it would otherwise become due and payable, and such default shall
     not be cured or such acceleration shall not be rescinded or annulled within
     a period of 30 days after there shall have been given, by registered or
     certified mail, to the Company and the Guarantor by the Trustee or to the
     Company, the Guarantor and the Trustee by the Holders of at least 25% in
     principal amount of the Outstanding Securities of such series or, if that
     series of Securities is held by an ACE Trust, the holders of at least 25%
     in liquidation amount of the Preferred Securities of that ACE Trust then
     outstanding, a written notice specifying such event of default and
     requiring the Company or the Guarantor to cause such acceleration to be
     rescinded or annulled or to cause such Indebtedness to be discharged and
     stating that such notice is a "Notice of Default" hereunder; or

          (6) the Company or the Guarantor shall fail within 60 days to pay,
     bond or otherwise discharge any uninsured judgment or court order for the
     payment of money in excess of $50,000,000, which is not stayed on appeal or
     is not otherwise being appropriately contested in good faith; or

          (7) the entry by a court having competent jurisdiction of:

                                       49
<PAGE>

               (a) a decree or order for relief in respect of the Company or
          the Guarantor in an involuntary proceeding under any applicable
          bankruptcy, insolvency, reorganization (other than a reorganization
          under a foreign law that does not relate to insolvency) or other
          similar law and such decree or order shall remain unstayed and in
          effect for a period of 60 consecutive days; or

               (b) a decree or order adjudging the Company or the Guarantor to
          be insolvent, or approving a petition seeking reorganization (other
          than a reorganization under a foreign law that does not relate to
          insolvency), arrangement, adjustment or composition of the Company or
          the Guarantor and such decree or order shall remain unstayed and in
          effect for a period of 60 consecutive days; or

               (c) a final and non-appealable order appointing a custodian,
          receiver, liquidator, assignee, trustee or other similar official of
          the Company or the Guarantor of any substantial part of the property
          of the Company or the Guarantor or ordering the winding up or
          liquidation of the affairs of the Company or the Guarantor; or

          (8) the commencement by the Company or the Guarantor of a voluntary
     proceeding under any applicable bankruptcy, insolvency, reorganization
     (other than a reorganization under a foreign law that does not relate to
     insolvency) or other similar law or of a voluntary proceeding seeking to be
     adjudicated insolvent or the consent by the Company or the Guarantor to the
     entry of a decree or order for relief in an involuntary proceeding under
     any applicable bankruptcy, insolvency, reorganization or other similar law
     or to the commencement of any insolvency proceedings against it, or the
     filing by the Company or the Guarantor of a petition or answer or consent
     seeking reorganization, arrangement, adjustment or composition of the
     Company or relief under any applicable law, or the consent by the Company
     or the Guarantor to the filing of such petition or to the appointment of or
     taking possession by a custodian, receiver, liquidator, assignee, trustee
     or similar official of the Company or the Guarantor or any substantial part
     of the property of the Company or the Guarantor or the making by the
     Company or the Guarantor of an assignment for the benefit of creditors, or
     the taking of corporate action by the Company or the Guarantor in
     furtherance of any such action; or

          (9) any other Event of Default provided in or pursuant to this
     Indenture with respect to Securities of such series.

     Section 5.2.  Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time
Outstanding (other than an Event of Default specified in clause (7) or (8) of
Section 5.1) occurs and is continuing, then the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of such series
may declare the principal of all the Securities of such series, or such lesser
amount as may be provided for in the Securities of such series, to be due

                                       50
<PAGE>

     and payable immediately, by a notice in writing to the Company and the
     Guarantor (and to the Trustee if given by the Holders), and upon any such
     declaration such principal or such lesser amount shall become immediately
     due and payable; provided that, in the case of Securities of a series
     issued to a ACE Trust, if, upon an Event of Default, the Trustee or the
     Holders of not less than 25% in principal amount of the Outstanding
     Securities of such series fail to declare the principal of all the
     Securities of such series, or such lesser amount as may be provided for in
     the Securities of such series, to be immediately due and payable, the
     holders of at least 25% in liquidation amount of the Preferred Securities
     of such ACE Trust then outstanding shall have such right by a notice in
     writing to the Company, the Guarantor, the Trustee and the Property
     Trustee; and upon any such declaration such principal or such lesser amount
     and all accrued and unpaid interest (including any Additional Interest)
     thereon shall become immediately due and payable, provided that the payment
     of principal and interest and all other amounts due with respect to such
     Securities shall remain subordinated to the extent provided in Article 16.

          If an Event of Default specified in clause (7) or (8) of Section 5.1
     occurs, all unpaid principal of and accrued interest (including any
     Additional Interest) on the Outstanding Securities of that series (or such
     lesser amount as may be provided for in the Securities of such series)
     shall ipso facto become and be immediately due and payable without any
     declaration or other act on the part of the Trustee or any Holder of any
     Security of that series.

          At any time after a declaration of acceleration with respect to the
     Securities of any series has been made and before a judgment or decree for
     payment of the money due has been obtained by the Trustee as hereinafter in
     this Article provided, the Holders of not less than a majority in principal
     amount of the Outstanding Securities of such series (subject to, in the
     case of any series of Securities held as assets of an ACE Trust, such
     consent of the holders of the Preferred Securities and the Common
     Securities of such ACE Trust as may be required under the Trust Agreement
     of such ACE Trust), by written notice to the Company, the Guarantor and the
     Trustee, may rescind and annul such declaration and its consequences if

               (1) the Company or the Guarantor has paid or deposited with the
          Trustee a sum of money sufficient to pay

                  (a) all overdue installments of any interest (including any
               Additional Interest) on and Additional Amounts with respect to
               all Securities of such series and any Coupon appertaining
               thereto,

                  (b) the principal of and any premium on any Securities of such
               series which have become due otherwise than by such declaration
               of acceleration and interest thereon and any Additional Amounts
               with respect thereto at the rate or rates borne by or provided
               for in such Securities,

                  (c) to the extent that payment of such interest or Additional
               Amounts is lawful, interest upon overdue installments of any
               interest and Additional Amounts at the rate or rates borne by or
               provided for in such Securities, and

                                       51
<PAGE>

               (d) all sums paid or advanced by the Trustee hereunder and the
          reasonable compensation, expenses, disbursements and advances of the
          Trustee, its agents and counsel and all other amounts due the Trustee
          under Section 6.6; and

          (2) all Events of Default with respect to Securities of such series,
     other than the non-payment of the principal of, any premium and interest
     on, and any Additional Amounts with respect to Securities of such series
     which shall have become due solely by such declaration of acceleration,
     shall have been cured or waived as provided in Section 5.13.

     In the case of Securities of a series issued to an ACE Trust, should the
Holders of such Securities fail to rescind and annul such declaration and its
consequences, the holders of a majority in liquidation amount of the Preferred
Securities of such ACE Trust then outstanding shall have such right by written
notice to the Company, the Guarantor, the Trustee and the Property Trustee,
subject to satisfaction of the conditions set forth in clauses (1) and (2) above
of this Section 5.2.

     No such rescission shall affect any subsequent default or impair any right
consequent thereon.

     Section 5.3. Collection of Indebtedness and Suits for Enforcement by
     Trustee.

     The Company and the Guarantor each covenants, in each case, that if

          (1) default is made in the payment of any installment of interest
     (including any Additional Interest) on or any Additional Amounts with
     respect to any Security or any Coupon appertaining thereto when such
     interest or Additional Amounts shall have become due and payable and such
     default continues for a period of 30 days, or

          (2) default is made in the payment of the principal of or any premium
     on any Security or any Additional Amounts with respect thereto at their
     Maturity,

the Company or the Guarantor, as the case may be, shall, upon demand of the
Trustee, pay to the Trustee, for the benefit of the Holders of such Securities
and any Coupons appertaining thereto, the whole amount of money then due and
payable with respect to such Securities and any Coupons appertaining thereto,
with interest (including any Additional Interest) upon the overdue principal,
any premium and (to the extent that payment of such interest shall be legally
enforceable and, if the Securities are held by an ACE Trust, without duplication
of any other amounts paid to such ACE Trust in respect thereof) upon any overdue
installments of interest and Additional Amounts at the rate or rates borne by or
provided for in such Securities, and, in addition thereto, such further amount
of money as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel and all other amounts due to the Trustee
under Section 6.6.

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<PAGE>

     If the Company or the Guarantor fails to pay the money it is required to
pay the Trustee pursuant to the preceding paragraph forthwith upon the demand of
the Trustee, the Trustee, in its own name and as trustee of an express trust,
may institute a judicial proceeding for the collection of the money so due and
unpaid, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Company or the Guarantor or any other obligor upon
such Securities and any Coupons appertaining thereto and collect the monies
adjudged or decreed to be payable in the manner provided by law out of the
property of the Company or the Guarantor or any other obligor upon such
Securities and any Coupons appertaining thereto, wherever situated.

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

     Section 5.4.  Trustee May File Proofs of Claim.

     In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company, the Guarantor or any other obligor
upon the Securities of any series or the property of the Company, the Guarantor
or such other obligor or their creditors, the Trustee (irrespective of whether
the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company or the Guarantor for the payment of
any overdue principal, premium, interest (including any Additional Interest) or
Additional Amounts) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

          (1) to file and prove a claim for the whole amount, or such lesser
     amount as may be provided for in the Securities of any applicable series,
     of the principal and any premium, interest (including any Additional
     Interest) and Additional Amounts owing and unpaid in respect of the
     Securities and any Coupons appertaining thereto and to file such other
     papers or documents as may be necessary or advisable in order to have the
     claims of the Trustee (including any claim for the reasonable compensation,
     expenses, disbursements and advances of the Trustee, its agents or counsel)
     and of the Holders of Securities or any Coupons appertaining thereto
     allowed in such judicial proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities or any Coupons to make such payments to the Trustee
and, in the event that the Trustee shall consent to the

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<PAGE>

making of such payments directly to the Holders of Securities or any Coupons, to
pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
any other amounts due the Trustee under Section 6.6.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Security
or any Coupon any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or Coupons or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security or any Coupon in any such proceeding.

     Section 5.5. Trustee May Enforce Claims without Possession of Securities or
Coupons.

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

     Section 5.6.  Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal, or any
premium, interest (including any Additional Interest) or Additional Amounts,
upon presentation of the Securities or Coupons, or both, as the case may be, and
the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

          FIRST:  To the payment of all amounts due the Trustee and any
     predecessor Trustee under Section 6.6;

          SECOND:  To the payment of the amounts then due and unpaid upon the
     Securities and any Coupons for principal and any premium, interest and
     Additional Amounts in respect of which or for the benefit of which such
     money has been collected, ratably, without preference or priority of any
     kind, according to the aggregate amounts due and payable on such Securities
     and Coupons for principal and any premium, interest (including any
     Additional Interest) and Additional Amounts, respectively;

          THIRD:  The balance, if any, to the Person or Persons entitled
     thereto.

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<PAGE>

     Section 5.7.  Limitations on Suits.

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

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

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

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

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

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

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

     Section 5.8.  Unconditional Right of Holders to Receive Principal and any
Premium, Interest and Additional Amounts.

     Notwithstanding any other provision in this Indenture, the Holder of any
Security or Coupon shall have the right, which is absolute and unconditional, to
receive payment of the principal of, any premium and (subject to Sections 3.5,
3.7 and 3.11) interest (including any Additional Interest) on, and any
Additional Amounts with respect to such Security or payment of such Coupon, as
the case may be, on the respective Stated Maturity or Maturities therefor
specified in such Security or Coupon (or, in the case of redemption, on the
Redemption Date or, in the case of repayment at the option of such Holder if
provided in or pursuant to this Indenture, on the date such repayment is due)
and to institute suit for the enforcement of any such payment, and such right
shall not be impaired without the consent of such Holder.  In the case of
Securities of a series issued to an ACE Trust, any holder of Preferred
Securities issued by such ACE Trust shall have the right, upon the occurrence of
an Event of Default described in Section 5.1(1) or

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<PAGE>

5.1(2) hereof, to institute directly a proceeding against the Company or the
Guarantor, as the case may be, for enforcement of payment to such holder of
principal of, and any premium and (subject to Sections 3.5, 3.7 and 3.11)
interest (including any Additional Interest) on, and Additional Amounts with
respect to, such Securities having a principal amount equal to the liquidation
amount of such Preferred Securities held by such holder (a "Direct Action").
Notwithstanding any payments made to a holder of Preferred Securities by the
Company or the Guarantor in connection with a Direct Action, the Company and the
Guarantor shall remain obligated to pay the principal of and premium, if any, or
interest on and Additional Amounts, if any, with respect to the related
Securities, and the Company or the Guarantor shall be subrogated to the rights
of the holder of such Preferred Securities with respect to payments on the
Preferred Securities to the extent of any payments made by the Company or the
Guarantor, as the case may be, to such holder in any Direct Action.

     Section 5.9.  Restoration of Rights and Remedies.

     If the Trustee or any Holder of a Security or a Coupon has, or the holders
of Preferred Securities have, instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee, to
such Holder or to the holders of such Preferred Securities, then and in every
such case the Company, the Guarantor, the Trustee and each such Holder or the
holders of such Preferred Securities 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 Trustee and each such
Holder or the holders of such Preferred Securities shall continue as though no
such proceeding had been instituted.

     Section 5.10.  Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities or Coupons in the last paragraph
of Section 3.6, no right or remedy herein conferred upon or reserved to the
Trustee, to each and every Holder of a Security or a Coupon or to the holders of
Preferred Securities is intended to be exclusive of any other right or remedy,
and every right and remedy, to the extent permitted by law, shall be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not, to the
extent permitted by law, prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     Section 5.11.  Delay or Omission Not Waiver.

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

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<PAGE>

be exercised from time to time, and as often as may be deemed expedient, by the
Trustee, by such Holder or by such holders of Preferred Securities, as the case
may be.

Section 5.12.  Control by Holders of Securities.

     The Holders of a majority in principal amount of the Outstanding Securities
of any series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee with respect to the Securities of
such series and any Coupons appertaining thereto, provided that

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

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

          (3) such direction is not unduly prejudicial to the rights of the
     other Holders of Securities of such series not joining in such action.

     Section 5.13.  Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series on behalf of the Holders of all the
Securities of such series and any Coupons appertaining thereto and, in the case
of any Securities issued to an ACE Trust, the holders of not less than a
majority in liquidation amount of the Preferred Securities issued by such ACE
Trust then outstanding, may waive any past default hereunder with respect to
such series and its consequences, except a default

          (1) in the payment of the principal of, any premium or interest
     (including any Additional Interest) on, or any Additional Amounts with
     respect to, any Security of such series or any Coupons appertaining
     thereto, or

          (2) in respect of a covenant or provision hereof which under Article 9
     cannot be modified or amended without the consent of the Holder of each
     Outstanding Security of such series affected.

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

     Section 5.14.  Waiver of Usury, Stay or Extension Laws.

     The Company and the Guarantor each covenants that (to the extent that it
may lawfully do so) it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or
extension law wherever enacted, now or at any time

                                       57
<PAGE>

hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company and the Guarantor each expressly waives (to the
extent that it may lawfully do so) all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.

     Section 5.15.  Undertaking for Costs

     All parties to this Indenture agree, and each Holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit having due regard to the merits and good
faith of the claims or defenses made by such party litigant; but the provisions
of this Section 5.15 shall not apply to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in principal amount of Outstanding Securities of any series or, if
a series of Securities is held by an ACE Trust, the holders of more than 10% in
liquidation amount of the Preferred Securities of that ACE Trust then
outstanding, or to any suit instituted by any Holder or any holder of Preferred
Securities for the enforcement of the payment of the principal of (or premium,
if any) or interest (including any Additional Interest), if any, on or
Additional Amounts, if any, with respect to any Security on or after the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date, and, in the case of repayment, on
or after the date for repayment) or for the enforcement of the right, if any, to
convert or exchange any Security into other securities in accordance with its
terms.

                                   ARTICLE 6

                                  The Trustee

     Section 6.1.  Certain Rights of Trustee.

     Subject to Sections 315(a) through 315(d) of the Trust Indenture Act:

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

          (2) any request or direction of the Company or of the Guarantor
     mentioned herein shall be sufficiently evidenced by a Company Request or a
     Company Order or by a Guarantor Request or Guarantor Order, as the case may
     be (in each case, other than delivery of any Security, together with any
     Coupons appertaining thereto, to the Trustee

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<PAGE>

     for authentication and delivery pursuant to Section 3.3 which shall be
     sufficiently evidenced as provided therein) and any resolution of the Board
     of Directors or of the Guarantor's Board of Directors may be sufficiently
     evidenced by a Board Resolution or by a Guarantor's Board Resolution, as
     the case may be;

          (3) whenever in the administration of this Indenture the Trustee shall
     deem it desirable that a matter be proved or established prior to taking,
     suffering or omitting any action hereunder, the Trustee (unless other
     evidence shall be herein specifically prescribed) may, in the absence of
     bad faith on its part, rely upon an Officer's Certificate or, if such
     matter pertains to the Guarantor, a Guarantor's Officer's Certificate;

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

          (5) the Trustee shall be under no obligation to exercise any of the
     rights or powers vested in it by or pursuant to this Indenture at the
     request or direction of any of the Holders of Securities of any series or
     any Coupons appertaining thereto pursuant to this Indenture, unless such
     Holders shall have offered to the Trustee such security or indemnity as is
     reasonably satisfactory to it against the costs, expenses and liabilities
     which might be incurred by it in compliance with such request or direction;

          (6) the Trustee shall not be bound to make any investigation into the
     facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, coupon or other paper or document, but the Trustee, in its
     discretion, may, but shall not be obligated to make such further inquiry or
     investigation into such facts or matters as it may see fit, and, if the
     Trustee shall determine to make such further inquiry or investigation, it
     shall be entitled to examine, during business hours and upon reasonable
     notice, the books, records and premises of the Company and the Guarantor,
     personally or by agent or attorney;

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

          (8) the Trustee shall not be liable for any action taken or error of
     judgment made in good faith by a Responsible Officer or Responsible
     Officers of the Trustee, unless it shall be proved that the Trustee was
     negligent, acted in bad faith or engaged in willful misconduct;

          (9) the Authenticating Agent, Paying Agent, and Security Registrar
     shall have the same protections as the Trustee set forth hereunder; and

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<PAGE>

          (10) the Trustee shall not be liable with respect to any action taken,
     suffered or omitted to be taken by it in good faith in accordance with an
     Act of the Holders hereunder, and, to the extent not so provided herein,
     with respect to any act requiring the Trustee to exercise its own
     discretion, relating to the time, method and place of conducting any
     proceeding for any remedy available to the Trustee, or exercising any trust
     or power conferred upon the Trustee, under this Indenture or any
     Securities, unless it shall be proved that, in connection with any such
     action taken, suffered or omitted or any such act, the Trustee was
     negligent, acted in bad faith or engaged in willful misconduct.

     Section 6.2.  Notice of Defaults.

     Within 90 days after the occurrence of any default hereunder with respect
to the Securities of any series, the Trustee shall transmit by mail to all
Holders of Securities of such series entitled to receive reports pursuant to
Section 7.3(3), notice of such default hereunder actually known to a Responsible
Officer of the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the
principal of (or premium, if any), or interest (including any Additional
Interest), if any, on, or Additional Amounts or any sinking fund or purchase
fund installment with respect to, any Security of such series, the Trustee shall
be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determine that the withholding
of such notice is in the best interest of the Holders of Securities and Coupons
of such series; and provided, further, that in the case of any default of the
character specified in Section 5.1(5) with respect to Securities of such series,
no such notice to Holders shall be given until at least 30 days after the
occurrence thereof.  For the purpose of this Section, the term "default" means
any event which is, or after notice or lapse of time or both would become, an
Event of Default with respect to Securities of such series.

     Section 6.3.  Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee's
certificate of authentication, and in any Coupons shall be taken as the
statements of the Company or the Guarantor, as the case may be, and neither the
Trustee nor any Authenticating Agent assumes any responsibility for their
correctness.  The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities or the Coupons, except that
the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Securities and perform its obligations hereunder and
that the statements made by it in a Statement of Eligibility on Form T-1
supplied to the Company are true and accurate, subject to the qualifications set
forth therein. Neither the Trustee nor any Authenticating Agent shall be
accountable for the use or application by the Company of the Securities or the
proceeds thereof.

     Section 6.4.  May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other Person that may be an agent of the Trustee or the
Guarantor or the Company, in its individual or any other capacity, may become
the owner or pledgee of Securities or Coupons

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<PAGE>

and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may
otherwise deal with the Company or the Guarantor with the same rights it would
have if it were not the Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other Person.

     Section 6.5.  Money Held in Trust.

     Except as provided in Section 4.3 and Section 10.3, money held by the
Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law and shall be held uninvested.  The Trustee shall be under
no liability for interest on any money received by it hereunder except as
otherwise agreed to in writing with the Company or the Guarantor.

     Section 6.6.  Compensation and Reimbursement.

     The Company and the Guarantor (without duplication) each agree:

          (1) to pay to the Trustee from time to time reasonable compensation
     for all services rendered by the Trustee hereunder (which compensation
     shall not be limited by any provision of law in regard to the compensation
     of a trustee of an express trust);

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

          (3) to indemnify the Trustee and its agents, officers, directors and
     employees for, and to hold them harmless against, any loss, liability or
     expense incurred without negligence or bad faith on their part, arising out
     of or in connection with the acceptance or administration of the trust or
     trusts hereunder, including the costs and expenses of defending themselves
     against any claim or liability in connection with the exercise or
     performance of any of their powers or duties hereunder, except to the
     extent that any such loss, liability or expense was due to the Trustee's
     negligence or bad faith.

     As security for the performance of the obligations of the Company and the
Guarantor under this Section, the Trustee shall have a lien prior to the
Securities of any series upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the payment of principal of, and
premium or interest (including any Additional Interest) on or any Additional
Amounts with respect to Securities or any Coupons appertaining thereto.

     To the extent permitted by law, any compensation or expense incurred by the
Trustee after a default specified in or pursuant to Section 5.1 is intended to
constitute an expense of administration under any then applicable bankruptcy or
insolvency law.  "Trustee" for purposes

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<PAGE>

of this Section 6.6 shall include any predecessor Trustee but the negligence or
bad faith of any Trustee shall not affect the rights of any other Trustee under
this Section 6.6.

     The provisions of this Section 6.6 shall survive the satisfaction and
discharge of this Indenture or the earlier resignation or removal of the Trustee
and shall apply with equal force and effect to the Trustee in its capacity as
Authenticating Agent, Paying Agent or Security Registrar.

     Section 6.7.  Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder that is a Corporation
organized and doing business under the laws of the United States of America, any
state thereof or the District of Columbia, that is eligible under Section
310(a)(1) of the Trust Indenture Act to act as trustee under an indenture
qualified under the Trust Indenture Act and that has a combined capital and
surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture
Act) of at least $50,000,000, and that is subject to supervision or examination
by Federal or state authority.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

     Section 6.8. Resignation and Removal; Appointment of Successor.

          (1) No resignation or removal of the Trustee and no appointment of a
     successor Trustee pursuant to this Article shall become effective until the
     acceptance of appointment by the successor Trustee pursuant to Section 6.9.

          (2) The Trustee may resign at any time with respect to the Securities
     of one or more series by giving written notice thereof to the Company and
     the Guarantor. If the instrument of acceptance by a successor Trustee
     required by Section 6.9 shall not have been delivered to the Trustee within
     30 days after the giving of such notice of resignation, the resigning
     Trustee may petition any court of competent jurisdiction for the
     appointment of a successor Trustee with respect to such series.

          (3) The Trustee may be removed at any time with or without cause with
     respect to the Securities of any series by Act of the Holders of a majority
     in principal amount of the Outstanding Securities of such series, delivered
     to the Trustee, the Company and the Guarantor.

          (4) If at any time:

              (a) the Trustee shall fail to comply with the obligations imposed
     upon it under Section 310(b) of the Trust Indenture Act with respect to
     Securities of any series after written request therefor by the Company, the
     Guarantor or any Holder of a Security of such series who has been a bona
     fide Holder of a Security of such series for at least six months, or

                                       62
<PAGE>

               (b) the Trustee shall cease to be eligible under Section 6.7 and
          shall fail to resign after written request therefor by the Company,
          the Guarantor or any such Holder, or

               (c) the Trustee shall become incapable of acting or shall be
          adjudged a bankrupt or insolvent or a receiver of the Trustee or of
          its property shall be appointed or any public officer shall take
          charge or control of the Trustee or of its property or affairs for the
          purpose of rehabilitation, conservation or liquidation, then, in any
          such case, (i) the Company, by or pursuant to a Board Resolution, or
          the Guarantor, by or pursuant to a Guarantor's Board Resolution, may
          remove the Trustee with respect to all Securities or the Securities of
          such series, or (ii) subject to Section 315(e) of the Trust Indenture
          Act, any Holder of a Security who has been a bona fide Holder of a
          Security of such series for at least six months may, on behalf of
          himself and all others similarly situated, petition any court of
          competent jurisdiction for the removal of the Trustee with respect to
          all Securities of such series and the appointment of a successor
          Trustee or Trustees.

          (5) If the Trustee shall resign, be removed or become incapable of
     acting, or if a vacancy shall occur in the office of Trustee for any
     reason, with respect to the Securities of one or more series, the Company,
     by or pursuant to a Board Resolution, and the Guarantor, by or pursuant to
     a Guarantor's Board Resolution, shall promptly appoint a successor Trustee
     or Trustees with respect to the Securities of such series (it being
     understood that any such successor Trustee may be appointed with respect to
     the Securities of one or more or all of such series and that at any time
     there shall be only one Trustee with respect to the Securities of any
     particular series) and shall comply with the applicable requirements of
     Section 6.9. If, within one year after such resignation, removal or
     incapacity, or the occurrence of such vacancy, a successor Trustee with
     respect to the Securities of any series shall be appointed by Act of the
     Holders of a majority in principal amount of the Outstanding Securities of
     such series delivered to the Company, the Guarantor and the retiring
     Trustee, the successor Trustee so appointed shall, forthwith upon its
     acceptance of such appointment in accordance with the applicable
     requirements of Section 6.9, become the successor Trustee with respect to
     the Securities of such series and to that extent supersede the successor
     Trustee appointed by the Company and the Guarantor. If no successor Trustee
     with respect to the Securities of any series shall have been so appointed
     by the Company and the Guarantor or the Holders of Securities and accepted
     appointment in the manner required by Section 6.9, any Holder of a Security
     who has been a bona fide Holder of a Security of such series for at least
     six months may, on behalf of himself and all others similarly situated,
     petition any court of competent jurisdiction for the appointment of a
     successor Trustee with respect to the Securities of such series.

          (6) The Company shall give notice of each resignation and each removal
     of the Trustee with respect to the Securities of any series and each
     appointment of a successor Trustee with respect to the Securities of any
     series by mailing written notice of

                                       63
<PAGE>

     such event by first-class mail, postage prepaid, to the Holders of
     Registered Securities, if any, of such series as their names and addresses
     appear in the Security Register and, if Securities of such series are
     issued as Bearer Securities, by publishing notice of such event once in an
     Authorized Newspaper in each Place of Payment located outside the United
     States. Each notice shall include the name of the successor Trustee with
     respect to the Securities of such series and the address of its Corporate
     Trust Office.

          (7) In no event shall any retiring Trustee be liable for the acts or
     omissions of any successor Trustee hereunder.

     Section 6.9.  Acceptance of Appointment by Successor.

          (1) Upon the appointment hereunder of any successor Trustee with
     respect to all Securities, such successor Trustee so appointed shall
     execute, acknowledge and deliver to the Company, the Guarantor and the
     retiring Trustee an instrument accepting such appointment, and thereupon
     the resignation or removal of the retiring Trustee shall become effective
     and such successor Trustee, without any further act, deed or conveyance,
     shall become vested with all the rights, powers, trusts and duties
     hereunder of the retiring Trustee; but, on the request of the Company, the
     Guarantor or such successor Trustee, such retiring Trustee, upon payment of
     its charges, shall execute and deliver an instrument transferring to such
     successor Trustee all the rights, powers and trusts of the retiring Trustee
     and, subject to Section 10.3, shall duly assign, transfer and deliver to
     such successor Trustee all property and money held by such retiring Trustee
     hereunder, subject nevertheless to its claim, if any, provided for in
     Section 6.6.

          (2) Upon the appointment hereunder of any successor Trustee with
     respect to the Securities of one or more (but not all) series, the Company,
     the Guarantor, the retiring Trustee and such successor Trustee shall
     execute and deliver an indenture supplemental hereto wherein each successor
     Trustee shall accept such appointment and which (1) shall contain such
     provisions as shall be necessary or desirable to transfer and confirm to,
     and to vest in, such successor Trustee all the rights, powers, trusts and
     duties of the retiring Trustee with respect to the Securities of that or
     those series to which the appointment of such successor Trustee relates,
     (2) if the retiring Trustee is not retiring with respect to all Securities,
     shall contain such provisions as shall be deemed necessary or desirable to
     confirm that all the rights, powers, trusts and duties of the retiring
     Trustee with respect to the Securities of that or those series as to which
     the retiring Trustee is not retiring shall continue to be vested in the
     retiring Trustee, and (3) shall add to or change any of the provisions of
     this Indenture as shall be necessary to provide for or facilitate the
     administration of the trusts hereunder by more than one Trustee, it being
     understood that nothing herein or in such supplemental indenture shall
     constitute such Trustees co-trustees of the same trust, that each such
     Trustee shall be trustee of a trust or trusts hereunder separate and apart
     from any trust or trusts hereunder administered by any other such Trustee
     and that no Trustee shall be responsible for any notice given to, or
     received by, or any act or failure to act on the part of any other Trustee
     hereunder, and, upon

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     the execution and delivery of such supplemental indenture, the resignation
     or removal of the retiring Trustee shall become effective to the extent
     provided therein, such retiring Trustee shall have no further
     responsibility for the exercise of rights and powers or for the performance
     of the duties and obligations vested in the Trustee under this Indenture
     with respect to the Securities of that or those series to which the
     appointment of such successor Trustee relates other than as hereinafter
     expressly set forth, and such successor Trustee, without any further act,
     deed or conveyance, shall become vested with all the rights, powers, trusts
     and duties of the retiring Trustee with respect to the Securities of that
     or those series to which the appointment of such successor Trustee relates;
     but, on request of the Company, the Guarantor or such successor Trustee,
     such retiring Trustee, upon payment of its charges with respect to the
     Securities of that or those series to which the appointment of such
     successor Trustee relates and subject to Section 10.3 shall duly assign,
     transfer and deliver to such successor Trustee, to the extent contemplated
     by such supplemental indenture, the property and money held by such
     retiring Trustee hereunder with respect to the Securities of that or those
     series to which the appointment of such successor Trustee relates, subject
     to its claim, if any, provided for in Section 6.6.

          (3) Upon request of any Person appointed hereunder as a successor
     Trustee, the Company and the Guarantor shall execute any and all
     instruments for more fully and certainly vesting in and confirming to such
     successor Trustee all such rights, powers and trusts referred to in
     paragraph (1) or (2) of this Section, as the case may be.

          (4) No Person shall accept its appointment hereunder as a successor
     Trustee unless at the time of such acceptance such successor Person shall
     be qualified and eligible under this Article.

     Section 6.10.  Merger, Conversion, Consolidation or Succession to Business.

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

     Section 6.11.  Appointment of Authenticating Agent.

     The Trustee may appoint one or more Authenticating Agents acceptable to the
Company with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue, exchange, registration of transfer,
partial redemption or partial repayment or pursuant to Section 3.6, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder.  Wherever reference is

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<PAGE>

made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent.

     Each Authenticating Agent must be acceptable to the Company and the
Guarantor and, except as provided in or pursuant to this Indenture, shall at all
times be a corporation that would be permitted by the Trust Indenture Act to act
as trustee under an indenture qualified under the Trust Indenture Act, is
authorized under applicable law and by its charter to act as an Authenticating
Agent and has a combined capital and surplus (computed in accordance with
Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000.  If at
any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and
with the effect specified in this Section.

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

     An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee, the Company and the Guarantor.  The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent, the Company and the Guarantor.  Upon
receiving such a notice of resignation or upon such a termination, or in case at
any time such Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and the Guarantor
and shall (i) mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Registered Securities, if any, of the series
with respect to which such Authenticating Agent shall serve, as their names and
addresses appear in the Security Register, and (ii) if Securities of the series
are issued as Bearer Securities, publish notice of such appointment at least
once in an Authorized Newspaper in the place where such successor Authenticating
Agent has its principal office if such office is located outside the United
States.  Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent.  No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

     The Company and the Guarantor (without duplication) each agree to pay each
Authenticating Agent from time to time reasonable compensation for its services
under this Section.  If the Trustee makes such payments, it shall be entitled to
be reimbursed for such payments, subject to the provisions of Section 6.6.

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     The provisions of Sections 3.8, 6.3 and 6.4 shall be applicable to each
Authenticating Agent.

     If an Authenticating Agent is appointed with respect to one or more series
of Securities pursuant to this Section, the Securities of such series may have
endorsed thereon, in addition to or in lieu of the Trustee's certificate of
authentication, an alternate certificate of authentication in substantially the
following form:

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

                              BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION, as
                                   Trustee

                              By _____________________________________________
                                as Authenticating Agent

                              By _____________________________________________
                                Authorized Officer

     If all of the Securities of any series may not be originally issued at one
time, and if the Trustee does not have an office capable of authenticating
Securities upon original issuance located in a Place of Payment where the
Company wishes to have Securities of such series authenticated upon original
issuance, the Trustee, if so requested in writing (which writing need not be
accompanied by or contained in an Officer's Certificate by the Company), shall
appoint in accordance with this Section an Authenticating Agent having an office
in a Place of Payment designated by the Company with respect to such series of
Securities.

                                   ARTICLE 7

          Holders Lists and Reports by Trustee, Guarantor and Company

     Section 7.1. Company and Guarantor to Furnish Trustee Names and Addresses
of Holders.

     In accordance with Section 312(a) of the Trust Indenture Act, the Company
and the Guarantor shall furnish or cause to be furnished to the Trustee

          (1) semi-annually with respect to Securities of each series not later
     than May 1 and November 1 of the year or upon such other dates as are set
     forth in or pursuant to the Board Resolution or indenture supplemental
     hereto authorizing such series, a list,

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<PAGE>

     in each case in such form as the Trustee may reasonably require, of the
     names and addresses of Holders as of the applicable date, and

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

provided, however, that so long as the Trustee is the Security Registrar no such
list shall be required to be furnished.

     Section 7.2.  Preservation of Information; Communications to Holders.

     The Trustee shall comply with the obligations imposed upon it pursuant to
Section 312 of the Trust Indenture Act.

     Every Holder of Securities or Coupons, by receiving and holding the same,
agrees with the Company, the Guarantor and the Trustee that none of the Company,
the Guarantor, the Trustee, any Paying Agent or any Security Registrar shall be
held accountable by reason of the disclosure of any such information as to the
names and addresses of the Holders of Securities in accordance with Section
312(c) of the Trust Indenture Act, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 312(b)
of the Trust Indenture Act.

     Section 7.3.  Reports by Trustee.

          (1) Within 60 days after September 15 of each year commencing with the
     first September 15 following the first issuance of Securities pursuant to
     Section 3.1, if required by Section 313(a) of the Trust Indenture Act, the
     Trustee shall transmit, pursuant to Section 313(c) of the Trust Indenture
     Act, a brief report dated as of such September 15 with respect to any of
     the events specified in said Section 313(a) which may have occurred since
     the later of the immediately preceding September 15 and the date of this
     Indenture.

          (2) The Trustee shall transmit the reports required by Section 313(a)
     of the Trust Indenture Act at the times specified therein.

          (3) Reports pursuant to this Section shall be transmitted in the
     manner and to the Persons required by Sections 313(c) and 313(d) of the
     Trust Indenture Act.

     Section 7.4.  Reports by Company and Guarantor.

     The Company and the Guarantor, pursuant to Section 314(a) of the Trust
Indenture Act, shall each:

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<PAGE>

          (1) file with the Trustee, within 15 days after the Company or the
     Guarantor, as the case may be, is required to file the same with the
     Commission, copies of the annual reports and of the information, documents
     and other reports (or copies of such portions of any of the foregoing as
     the Commission may from time to time by rules and regulations prescribe)
     which the Company or the Guarantor, as the case may be, may be required to
     file with the Commission pursuant to Section 13 or Section 15(d) of the
     Securities Exchange Act of 1934, as amended; or, if the Company or the
     Guarantor, as the case may be, is not required to file information,
     documents or reports pursuant to either of said Sections, then it shall
     file with the Trustee and the Commission, in accordance with rules and
     regulations prescribed from time to time by the Commission, such of the
     supplementary and periodic information, documents and reports which may be
     required pursuant to Section 13 of the Securities Exchange Act of 1934, as
     amended, in respect of a security listed and registered on a national
     securities exchange as may be prescribed from time to time in such rules
     and regulations;

          (2) file with the Trustee and the Commission, in accordance with rules
     and regulations prescribed from time to time by the Commission, such
     additional information, documents and reports with respect to compliance by
     the Company or the Guarantor, as the case may be, with the conditions and
     covenants of this Indenture as may be required from time to time by such
     rules and regulations; and

          (3) transmit within 30 days after the filing thereof with the Trustee,
     in the manner and to the extent provided in Section 313(c) of the Trust
     Indenture Act, such summaries of any information, documents and reports
     required to be filed by the Company or the Guarantor, as the case may be,
     pursuant to paragraphs (1) and (2) of this Section as may be required by
     rules and regulations prescribed from time to time by the Commission.

                                   ARTICLE 8

                 Consolidation, Amalgamations, Merger and Sales

     Section 8.1.  Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate or amalgamate with or merge into any
other Person (whether or not affiliated with the Company), or convey, transfer
or lease its properties and assets as an entirety or substantially as an
entirety to any other Person (whether or not affiliated with the Company), and
the Company shall not permit any other Person (whether or not affiliated with
the Company) to consolidate or amalgamate with or merge into the Company or
convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to the Company; unless:

          (1) in case the Company shall consolidate or amalgamate with or merge
     into another Person or convey, transfer or lease its properties and assets
     as an entirety or substantially as an entirety to any Person, the Person
     formed by such consolidation or

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<PAGE>

     amalgamation or into which the Company is merged or the Person which
     acquires by conveyance or transfer, or which leases, the properties and
     assets of the Company as an entirety or substantially as an entirety shall
     be a Corporation organized and existing under the laws of the United States
     of America or any state thereof or the District of Columbia and shall
     expressly assume, by an indenture (or indentures, if at such time there is
     more than one Trustee) supplemental hereto, executed by the successor
     Person and the Guarantor and delivered to the Trustee the due and punctual
     payment of the principal of, any premium and interest (including any
     Additional Interest) on and any Additional Amounts with respect to all the
     Securities and the performance of every obligation in this Indenture and
     the Outstanding Securities on the part of the Company to be performed or
     observed and shall provide for conversion or exchange rights in accordance
     with the provisions of the Securities of any series that are convertible or
     exchangeable into Common Stock or other securities;

          (2) immediately after giving effect to such transaction and treating
     any indebtedness which becomes an obligation of the Company or a Subsidiary
     as a result of such transaction as having been incurred by the Company or
     such Subsidiary at the time of such transaction, no Event of Default or
     event which, after notice or lapse of time, or both, would become an Event
     of Default, shall have occurred and be continuing;

          (3) in the case of the Securities of a series issued to an ACE Trust,
     such transaction is permitted under the related Trust Agreement and does
     not give rise to any breach or violation of such Trust Agreement; and

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

     Section 8.2.  Successor Person Substituted for Company.

     Upon any consolidation or amalgamation by the Company with or merger of the
Company into any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety to any Person
in accordance with Section 8.1, the successor Person formed by such
consolidation or amalgamation or into which the Company is merged or to which
such conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company
herein; and thereafter, except in the case of a lease, the predecessor Person
shall be released from all obligations and covenants under this Indenture, the
Securities and the Coupons.

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<PAGE>

     Section 8.3.  Guarantor May Consolidate, Etc., Only on Certain Terms.

     The Guarantor shall not consolidate or amalgamate with or merge into any
other Person (whether or not affiliated with the Guarantor), or convey, transfer
or lease its properties and assets as an entirety or substantially as an
entirety to any other Person (whether or not affiliated with the Guarantor), and
the Guarantor shall not permit any other Person (whether or not affiliated with
the Guarantor) to consolidate or amalgamate with or merge into the Guarantor or
convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to the Guarantor; unless:

          (1) in case the Guarantor shall consolidate or amalgamate with or
     merge into another Person or convey, transfer or lease its properties and
     assets as an entirety or substantially as an entirety to any Person, the
     Person formed by such consolidation or amalgamation or into which the
     Guarantor is merged or the Person which acquires by conveyance or transfer,
     or which leases, the properties and assets of the Guarantor as an entirety
     or substantially as an entirety shall be a Corporation organized and
     existing under the laws of the United States of America, any state thereof
     or the District of Columbia, Bermuda or the Cayman Islands, or any other
     country which is on the date of this Indenture a member of the Organization
     for Economic Cooperation and Development, and shall expressly assume, by an
     indenture (or indentures, if at such time there is more than one Trustee)
     supplemental hereto, executed by the successor Person and the Company and
     delivered to the Trustee the due and punctual payment of the principal of,
     any premium and interest (including any Additional Interest) on and any
     Additional Amounts with respect to all the Securities and the performance
     of every obligation in this Indenture and the Outstanding Securities on the
     part of the Guarantor to be performed or observed and shall provide for
     conversion or exchange rights in accordance with the provisions of the
     Securities of any series that are convertible or exchangeable into Common
     Stock or other securities;

          (2) immediately after giving effect to such transaction and treating
     any indebtedness which becomes an obligation of the Guarantor or a
     Subsidiary as a result of such transaction as having been incurred by the
     Guarantor or such Subsidiary at the time of such transaction, no Event of
     Default or event which, after notice or lapse of time, or both, would
     become an Event of Default, shall have occurred and be continuing;

          (3) in the case of Securities of a series issued to an ACE Trust, such
     transaction is permitted under the related Guarantee Agreement and does not
     give rise to any breach or violation of such Guarantee Agreement; and

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

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<PAGE>

     Section 8.4.  Successor Person Substituted for Guarantor.

     Upon any consolidation or amalgamation by the Guarantor with or merger of
the Guarantor into any other Person or any conveyance, transfer or lease of the
properties and assets of the Guarantor substantially as an entirety to any
Person in accordance with Section 8.3, the successor Person formed by such
consolidation or amalgamation or into which the Guarantor is merged or to which
such conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Guarantor under this
Indenture with the same effect as if such successor Person had been named as the
Guarantor herein; and thereafter, except in the case of a lease, the predecessor
Person shall be released from all obligations and covenants under this
Indenture, the Securities and the Coupons.

                                   ARTICLE 9

                            Supplemental Indentures

     Section 9.1.  Supplemental Indentures without Consent of Holders.

     Without the consent of any Holders of Securities or Coupons, the Company
(when authorized by or pursuant to a Board Resolution), the Guarantor (when
authorized by or pursuant to a Guarantor's Board Resolution) and the Trustee, at
any time and from time to time, may enter into one or more indentures
supplemental hereto, for any of the following purposes:

          (1) to evidence the succession of another Person to the Company or the
     Guarantor, and the assumption by any such successor of the covenants of the
     Company or the Guarantor, as the case may be, contained herein and in the
     Securities; or

          (2) to add to the covenants of the Company or the Guarantor, as the
     case may be, for the benefit of the Holders of all or any series of
     Securities (as shall be specified in such supplemental indenture or
     indentures) or to surrender any right or power herein conferred upon the
     Company or the Guarantor, as the case may be; or

          (3) to add to or change any of the provisions of this Indenture to
     provide that Bearer Securities may be registrable as to principal, to
     change or eliminate any restrictions on the payment of principal of, any
     premium or interest (including any Additional Interest) on or any
     Additional Amounts with respect to Securities, to permit Bearer Securities
     to be issued in exchange for Registered Securities, to permit Bearer
     Securities to be exchanged for Bearer Securities of other authorized
     denominations or to permit or facilitate the issuance of Securities in
     uncertificated form, provided any such action shall not adversely affect
     the interests of the Holders of Outstanding Securities of any series or any
     Coupons appertaining thereto in any material respect; or

          (4) to establish the form or terms of Securities of any series and any
     Coupons appertaining thereto as permitted by Sections 2.1 and 3.1; or

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<PAGE>

          (5) to evidence and provide for the acceptance of appointment
     hereunder by a successor Trustee with respect to the Securities of one or
     more series and to add to or change any of the provisions of this Indenture
     as shall be necessary to provide for or facilitate the administration of
     the trusts hereunder by more than one Trustee, pursuant to the requirements
     of Section 6.9; or

          (6) to cure any ambiguity or to correct or supplement any provision
     herein which may be defective or inconsistent with any other provision
     herein, or to make any other provisions with respect to matters or
     questions arising under this Indenture which shall not adversely affect the
     interests of the Holders of Securities of any series then Outstanding or
     any Coupons appertaining thereto or, in the case of Securities of a series
     issued to an ACE Trust and for so long as any of the Preferred Securities
     issued by such ACE Trust shall remain outstanding, the holders of such
     Preferred Securities, in any material respect; or

          (7) to add to, delete from or revise the conditions, limitations and
     restrictions on the authorized amount, terms or purposes of issue,
     authentication and delivery of Securities, as herein set forth; or

          (8) to add any additional Events of Default with respect to all or any
     series of Securities (as shall be specified in such supplemental
     indenture); or

          (9) to supplement any of the provisions of this Indenture to such
     extent as shall be necessary to permit or facilitate the defeasance and
     discharge of any series of Securities pursuant to Article 4, provided that
     any such action shall not adversely affect the interests of any Holder of
     an Outstanding Security of such series and any Coupons appertaining thereto
     or any other Outstanding Security or Coupon or, in the case of Securities
     of a series issued to an ACE Trust and for so long as any of the Preferred
     Securities issued by such ACE Trust shall remain outstanding, the holders
     of such Preferred Securities, in any material respect; or

          (10)  to secure the Securities; or

          (11) to make provisions with respect to conversion or exchange rights
     of Holders of Securities of any series; or

          (12) to amend or supplement any provision contained herein or in any
     supplemental indenture, provided that no such amendment or supplement shall
     materially adversely affect the interests of the Holders of any Securities
     then Outstanding.

     Section 9.2.  Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture (and, in the case of any series of Securities held as
assets of an ACE Trust, such consent of holders of

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<PAGE>

the Preferred Securities and the Common Securities of such ACE Trust as may be
required under the Trust Agreement of such ACE Trust), by Act of said Holders
delivered to the Company, the Guarantor and the Trustee, the Company (when
authorized by or pursuant to a Company's Board Resolution), the Guarantor (when
authorized by or pursuant to a Guarantor's Board Resolution) and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture or of the Securities
of such series; provided, however, that no such supplemental indenture, without
the consent of the Holder of each Outstanding Security affected thereby, shall

          (1) change the Stated Maturity of the principal of, or any premium or
     installment of interest (including any Additional Interest) on or any
     Additional Amounts with respect to, any Security, or reduce the principal
     amount thereof or the rate (or modify the calculation of such rate) of
     interest (including any Additional Interest) thereon or any Additional
     Amounts with respect thereto, or any premium payable upon the redemption
     thereof or otherwise, or change the obligation of the Company and the
     Guarantor to pay Additional Amounts pursuant to the terms hereof (except as
     contemplated by Section 8.1(1) and permitted by Section 9.1(1)), or reduce
     the amount of the principal of an Original Issue Discount Security that
     would be due and payable upon a declaration of acceleration of the Maturity
     thereof pursuant to Section 5.2 or the amount thereof provable in
     bankruptcy pursuant to Section 5.4, change the redemption provisions or
     adversely affect the right of repayment at the option of any Holder as
     contemplated by Article 13, or change the Place of Payment, Currency in
     which the principal of, any premium or interest (including any Additional
     Interest) on, or any Additional Amounts with respect to any Security is
     payable, or impair the right to institute suit for the enforcement of any
     such payment on or after the Stated Maturity thereof (or, in the case of
     redemption, on or after the Redemption Date or, in the case of repayment at
     the option of the Holder, on or after the date for repayment), or

          (2) reduce the percentage in principal amount of the Outstanding
     Securities of any series, the consent of whose Holders is required for any
     such supplemental indenture, or the consent of whose Holders is required
     for any waiver (of compliance with certain provisions of this Indenture or
     certain defaults hereunder and their consequences) provided for in this
     Indenture, or reduce the requirements of Section 15.4 for quorum or voting,
     or

          (3) modify any of the provisions of this Indenture relating to the
     subordination of the Securities or the Guarantee in respect thereof in a
     manner adverse to Holders of Securities, or

          (4) modify or effect in any manner adverse to the Holders the terms
     and conditions of the obligations of the Guarantor in respect of the due
     and punctual payments of principal of, or any premium or interest
     (including any Additional Interest)

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<PAGE>

     on, or any sinking fund requirements or Additional Amounts with respect to,
     the Securities, or

          (5) modify any of the provisions of this Section, Section 5.13 or
     Section 10.6, except to increase any such percentage or to provide that
     certain other provisions of this Indenture cannot be modified or waived
     without the consent of the Holder of each Outstanding Security affected
     thereby, or

          (6) make any change that adversely affects the right to convert or
     exchange any Security into or for securities of the Company or the
     Guarantor or other securities (whether or not issued by the Company or the
     Guarantor), cash or property in accordance with its terms,

provided that, in the case of the Securities of a series issued to an ACE Trust,
so long as any of the Preferred Securities of such ACE Trust remain outstanding,
no such amendment shall be made that adversely affects the holders of such
Preferred Securities, and no termination of this Indenture shall occur, and no
waiver of any Event of Default or compliance with any covenant under this
Indenture shall be effective, without the prior consent of the holders of at
least a majority of the liquidation amount of such Preferred Securities then
outstanding unless and until the principal of, any premium or, subject to
Section 3.7, interest (including any Additional Interest) on, and any Additional
Amounts with respect to, the Securities of such series have been paid in full;
and provided further that in the case of the Securities of a series issued to an
ACE Trust, so long as any of the Preferred Securities of such ACE Trust remain
outstanding, no amendment shall be made to Section 5.8 of this Indenture without
the prior consent of the holder of each Preferred Security then outstanding
unless and until the principal of, any premium or, subject to Section 3.7,
interest (including any Additional Interest) on, and any Additional Amounts with
respect to, the Securities of such series have been paid in full.

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

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

     Section 9.3.  Execution of Supplemental Indentures.

     As a condition to executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications
thereby of the trust created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 315 of the Trust Indenture Act) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture and an

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Officer's Certificate and Guarantor's Officer's Certificate stating that all
conditions precedent to the execution of such supplemental indenture have been
fulfilled.  The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

     Section 9.4.  Effect of Supplemental Indentures.

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

     Section 9.5.  Reference in Securities to Supplemental Indentures.

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

     Section 9.6.  Conformity with Trust Indenture Act.

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

     Section 9.7.  Effect on Senior Indebtedness.

     No supplemental indenture shall directly or indirectly modify or eliminate
the provisions of Article 16 or Article 18, as the case may be, in any manner
which might terminate or impair the subordination of the Securities of any
series to Company Senior Indebtedness with respect to such series or the
subordination of the Guarantee in respect thereof to Guarantor Senior
Indebtedness with respect to such series, respectively, without the prior
written consent of the holders of such Company Senior Indebtedness or Guarantor
Senior Indebtedness, respectively.

     Section 9.8.  Notice of Supplemental Indenture.

     Promptly after the execution by the Company, the Guarantor and the Trustee
of any supplemental indenture pursuant to Section 9.2, the Company shall
transmit to the Holders of Outstanding Securities of any series affected thereby
a notice setting forth the substance of such supplemental indenture.

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                                  ARTICLE 10

                                   Covenants

     Section 10.1. Payment of Principal, any Premium, Interest and Additional
Amounts.

     The Company covenants and agrees for the benefit of the Holders of the
Securities of each series that it will duly and punctually pay the principal of,
any premium and interest (including any Additional Interest) on and any
Additional Amounts with respect to the Securities of such series in accordance
with the terms thereof, any Coupons appertaining thereto and this Indenture.
Any interest due on any Bearer Security on or before the Maturity thereof, and
any Additional Amounts payable with respect to such interest, shall be payable
only upon presentation and surrender of the Coupons appertaining thereto for
such interest as they severally mature.

     Section 10.2.  Maintenance of Office or Agency.

     The Company and the Guarantor shall maintain in each Place of Payment for
any series of Securities an Office or Agency where Securities of such series
(but not Bearer Securities, except as otherwise provided below, unless such
Place of Payment is located outside the United States) may be presented or
surrendered for payment, where Securities of such series may be surrendered for
registration of transfer or exchange, where Securities of such series that are
convertible or exchangeable may be surrendered for conversion or exchange, and
where notices and demands to or upon the Company or the Guarantor in respect of
the Securities of such series relating thereto and this Indenture may be served.
If Securities of a series are issuable as Bearer Securities, the Company and the
Guarantor shall maintain, subject to any laws or regulations applicable thereto,
an Office or Agency in a Place of Payment for such series which is located
outside the United States where Securities of such series and any Coupons
appertaining thereto may be presented and surrendered for payment; provided,
however, that if the Securities of such series are listed on The Stock Exchange
of the United Kingdom and the Republic of Ireland or the Luxembourg Stock
Exchange or any other stock exchange located outside the United States and such
stock exchange shall so require, the Company and the Guarantor shall maintain a
Paying Agent in London, Luxembourg or any other required city located outside
the United States, as the case may be, so long as the Securities of such series
are listed on such exchange.  The Company and the Guarantor will give prompt
written notice to the Trustee of the location, and any change in the location,
of such Office or Agency.  If at any time the Company or the Guarantor shall
fail to maintain any such required Office or Agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee,
except that Bearer Securities of such series and any Coupons appertaining
thereto may be presented and surrendered for payment at the place specified for
the purpose with respect to such Securities as provided in or pursuant to this
Indenture, and the Company and the Guarantor hereby appoint the Trustee as their
agent to receive all such presentations, surrenders, notices and demands.

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     Except as otherwise provided in or pursuant to this Indenture, no payment
of principal, premium, interest or Additional Amounts with respect to Bearer
Securities shall be made at any Office or Agency in the United States or by
check mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, if
amounts owing with respect to any Bearer Securities shall be payable in Dollars,
payment of principal of, any premium or interest on and any Additional Amounts
with respect to any such Security may be made at the Corporate Trust Office of
the Trustee or any Office or Agency designated by the Company and the Guarantor
in the Borough of Manhattan, The City of New York, if (but only if) payment of
the full amount of such principal, premium, interest or Additional Amounts at
all offices outside the United States maintained for such purpose by the Company
and the Guarantor in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions.

     The Company and the Guarantor may also from time to time designate one or
more other Offices or Agencies where the Securities of one or more series may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company or the Guarantor of its
obligation to maintain an Office or Agency in each Place of Payment for
Securities of any series for such purposes.  The Company and the Guarantor shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other Office or Agency.  Unless
otherwise provided in or pursuant to this Indenture, the Company and the
Guarantor hereby designate as the Place of Payment for each series of Securities
the Borough of Manhattan, The City of New York, and initially appoint the
Corporate Trust Office of the Trustee as the Office or Agency of the Company in
the Borough of Manhattan, The City of New York for such purpose.  The Company
and the Guarantor may subsequently appoint a different Office or Agency in the
Borough of Manhattan, The City of New York for the Securities of any series.

     Unless otherwise specified with respect to any Securities pursuant to
Section 3.1, if and so long as the Securities of any series (i) are denominated
in a Foreign Currency or (ii) may be payable in a Foreign Currency, or so long
as it is required under any other provision of this Indenture, then the Company
will maintain with respect to each such series of Securities, or as so required,
at least one exchange rate agent.

     Section 10.3.  Money for Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent, or if the
Guarantor shall act as Paying Agent, with respect to any series of Securities,
it shall, on or before each due date of the principal of, any premium or
interest (including any Additional Interest) on or Additional Amounts with
respect to any of the Securities of such series, segregate and hold in trust for
the benefit of the Persons entitled thereto a sum in the currency or currencies,
currency unit or units or composite currency or currencies in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 3.1 for the Securities of such series) sufficient to pay the principal
or any premium, interest (including any Additional Interest) or Additional
Amounts so

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becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and shall promptly notify the Trustee of its action or
failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of
Securities, it shall, on or prior to each due date of the principal of, any
premium or interest (including any Additional Interest) on or any Additional
Amounts with respect to any Securities of such series, deposit with any Paying
Agent a sum (in the currency or currencies, currency unit or units or composite
currency or currencies described in the preceding paragraph) sufficient to pay
the principal or any premium, interest (including any Additional Interest) or
Additional Amounts so becoming due, such sum to be held in trust for the benefit
of the Persons entitled thereto, and (unless such Paying Agent is the Trustee)
the Company will promptly notify the Trustee of its action or failure so to act.

     The Company shall cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent shall:

          (1) hold all sums held by it for the payment of the principal of, any
     premium or interest (including any Additional Interest) on or any
     Additional Amounts with respect to Securities of such series in trust for
     the benefit of the Persons entitled thereto until such sums shall be paid
     to such Persons or otherwise disposed of as provided in or pursuant to this
     Indenture;

          (2) give the Trustee notice of any default by the Company or the
     Guarantor (or any other obligor upon the Securities of such series) in the
     making of any payment of principal, any premium or interest (including any
     Additional Interest) on or any Additional Amounts with respect to the
     Securities of such series; and

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

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

     Except as otherwise provided herein or pursuant hereto, any money deposited
with the Trustee or any Paying Agent, or then held by the Company or the
Guarantor, in trust for the payment of the principal of, any premium or interest
(including any Additional Interest) on or any Additional Amounts with respect to
any Security of any series or any Coupon appertaining thereto and remaining
unclaimed for two years after such principal or any such premium or

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interest or any such Additional Amounts shall have become due and payable shall
be paid to the Company on Company Request (or if deposited by the Guarantor,
paid to the Guarantor on Guarantor Request), or (if then held by the Company or
the Guarantor) shall be discharged from such trust; and the Holder of such
Security or any Coupon appertaining thereto shall thereafter, as an unsecured
general creditor, look only to the Company and the Guarantor for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company and the Guarantor cause to be published once, in an Authorized Newspaper
in each Place of Payment for such series or to be mailed to Holders of
Registered Securities of such series, or both, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication or mailing nor shall it be later than
two years after such principal and any premium or interest or Additional Amounts
shall have become due and payable, any unclaimed balance of such money then
remaining will be repaid to the Company or the Guarantor, as the case may be.

     Section 10.4.  Additional Amounts.

     If any Securities of a series provide for the payment of Additional
Amounts, the Company agrees to pay to the Holder of any such Security or any
Coupon appertaining thereto Additional Amounts as provided in or pursuant to
this Indenture or such Securities.  Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon or the
net proceeds received on the sale or exchange of any Security of any series,
such mention shall be deemed to include mention of the payment of Additional
Amounts provided by the terms of such series established hereby or pursuant
hereto to the extent that, in such context, Additional Amounts are, were or
would be payable in respect thereof pursuant to such terms, and express mention
of the payment of Additional Amounts (if applicable) in any provision hereof
shall not be construed as excluding Additional Amounts in those provisions
hereof where such express mention is not made.

     Except as otherwise provided in or pursuant to this Indenture or the
Securities of the applicable series, if the Securities of a series provide for
the payment of Additional Amounts, at least 10 days prior to the first Interest
Payment Date with respect to such series of Securities (or if the Securities of
such series shall not bear interest prior to Maturity, the first day on which a
payment of principal is made), and at least 10 days prior to each date of
payment of principal or interest if there has been any change with respect to
the matters set forth in the below-mentioned Officer's Certificate, the Company
shall furnish to the Trustee and the principal Paying Agent or Paying Agents, if
other than the Trustee, an Officer's Certificate instructing the Trustee and
such Paying Agent or Paying Agents whether such payment of principal of and
premium, if any, or interest on the Securities of such series shall be made to
Holders of Securities of such series or the Coupons appertaining thereto who are
United States Aliens without withholding for or on account of any tax,
assessment or other governmental charge described in the Securities of such
series.  If any such withholding shall be required, then such Officer's
Certificate shall specify by

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<PAGE>

country the amount, if any, required to be withheld on such payments to such
Holders of Securities or Coupons, and the Company agrees to pay to the Trustee
or such Paying Agent the Additional Amounts required by the terms of such
Securities. The Company covenants to indemnify the Trustee and any Paying Agent
for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of
or in connection with actions taken or omitted by any of them in reliance on any
Officer's Certificate furnished pursuant to this Section 10.4.

     Section 10.5.  Corporate Existence.

     Subject to Article 8, the Company and the Guarantor shall do or cause to be
done all things necessary to preserve and keep in full force and effect their
respective corporate existences and that of each of their respective
Subsidiaries and their respective rights (charter and statutory) and franchises;
provided, however, that the foregoing shall not obligate the Company or the
Guarantor or any of their respective Subsidiaries to preserve any such right or
franchise if the Company, the Guarantor or any such Subsidiary shall determine
that the preservation thereof is no longer desirable in the conduct of its
business or the business of such Subsidiary and that the loss thereof is not
disadvantageous in any material respect to any Holder.

     Section 10.6.  Waiver of Certain Covenants.

     The Company or the Guarantor, as the case may be, may omit in any
particular instance to comply with any term, provision or condition set forth in
Section 10.5 with respect to the Securities of any series if before the time for
such compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series, by Act of such Holders, either shall
waive such compliance in such instance or generally shall have waived compliance
with such term, provision or condition, but no such waiver shall extend to or
affect such term, provision or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the
Company and the Guarantor and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

     Section 10.7. Company Statement as to Compliance; Notice of Certain
Defaults.

          (1) The Company shall deliver to the Trustee, within 120 days after
     the end of each fiscal year, a written statement (which need not be
     contained in or accompanied by an Officer's Certificate) signed by the
     principal executive officer, the principal financial officer or the
     principal accounting officer of the Company, stating that

               (a) a review of the activities of the Company during such year
          and of its performance under this Indenture has been made under his or
          her supervision, and

               (b) to the best of his or her knowledge, based on such review,
          (a) the Company has complied with all the conditions and covenants
          imposed on it under this Indenture throughout such year, or, if there
          has been a default in the

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<PAGE>

          fulfillment of any such condition or covenant, specifying each such
          default known to him or her and the nature and status thereof, and (b)
          no event has occurred and is continuing which is, or after notice or
          lapse of time or both would become, an Event of Default, or, if such
          an event has occurred and is continuing, specifying each such event
          known to him and the nature and status thereof.

          (2) The Company shall deliver to the Trustee, within five days after
     the occurrence thereof, written notice of any Event of Default or any event
     which after notice or lapse of time or both would become an Event of
     Default pursuant to clause (4) of Section 5.1.

          (3) The Trustee shall have no duty to monitor the Company's compliance
     with the covenants contained in this Article 10 other than as specifically
     set forth in this Section 10.7.

     Section 10.8. Guarantor Statement as to Compliance; Notice of Certain
Defaults.

          (1) The Guarantor shall deliver to the Trustee, within 120 days after
     the end of each fiscal year, a written statement (which need not be
     contained in or accompanied by a Guarantor's Officer's Certificate) signed
     by the principal executive officer, the principal financial officer or the
     principal accounting officer of the Guarantor, stating that

               (a) a review of the activities of the Guarantor during such year
          and of performance under this Indenture has been made under his or her
          supervision, and

               (b) to the best of his or her knowledge, based on such review,
          (a) the Guarantor has complied with conditions and covenants imposed
          on it under this Indenture throughout such year, or, if there has been
          a default in the fulfillment of any such condition or covenant,
          specifying each such default known to him or her and the nature and
          status thereof, and (b) no event has occurred and is continuing which
          constitutes, or which after notice or lapse of time or both would
          become, an Event of Default, or, if such an event has occurred and is
          continuing, specifying each such event known to him and the nature and
          status thereof.

          (2) The Guarantor shall deliver to the Trustee, within five days after
     the occurrence thereof, written notice of any event which after notice or
     lapse of time or both would become an Event of Default pursuant to clause
     (4) of Section 5.1.

          (3) The Trustee shall have no duty to monitor the Guarantor's
     compliance with the covenants contained in this Article 10 other than as
     specifically set forth in this Section 10.8.

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     Section 10.9.  Additional Sums.

     In the case of Securities of a series issued to an ACE Trust, except as
otherwise specified as contemplated by Section 3.1, in the event that (i) such
ACE Trust is the Holder of all of the Outstanding Securities of such series,
(ii) a Tax Event in respect of such ACE Trust shall have occurred and be
continuing and (iii) the Company shall not have (i) redeemed the Securities of
such series pursuant to Section 11.8 or (ii) dissolved such ACE Trust pursuant
to Section 9.2(b) of the related Trust Agreement, the Company shall pay to such
ACE Trust (and its permitted successors or assigns under the related Trust
Agreement), for so long as such ACE Trust (or its permitted successor or
assignee) is the registered holder of any Securities of such series, such
additional amounts as may be necessary in order that the amount of Distributions
then due and payable by such ACE Trust on the related Preferred Securities and
Common Securities that at any time remain outstanding in accordance with the
terms thereof shall not be reduced as a result of any Additional Taxes (the
"Additional Sums").  Whenever in this Indenture there is mentioned, in any
context, the payment of the principal of or any premium or interest on, or in
respect of, any Security of any series or any Coupon or the net proceeds
received on the sale or exchange of any Security of any series, such mention
shall be deemed to include mention of the payment of Additional Sums provided by
the terms of such series established hereby or pursuant hereto to the extent
that, in such context, Additional Sums are, were or would be payable in respect
thereof pursuant to such terms, and express mention of the payment of Additional
Sums (if applicable) in any provision hereof shall not be construed as excluding
Additional Sums in those provisions hereof where such express mention is not
made, provided, however, that the extension of an interest payment period
pursuant to Section 3.11 or the terms of the applicable Securities shall not
extend the payment of any Additional Sums that may be due and payable during
such interest payment period.

     Section 10.10.  Prohibition Against Dividends, etc.

     Except as otherwise specified as contemplated by Section 3.1, the Company
and the Guarantor each covenant and agree with each Holder of Securities of a
series issued to an ACE Trust that it will not, and will not permit any of its
Subsidiaries to, (a) declare or pay any dividends or distributions on, or
redeem, purchase, acquire or make a liquidation payment with respect to, any of
the outstanding Capital Stock of the Company or the Guarantor, as the case may
be, or (b) make any payment of principal of, interest or premium, if any, on or
repay, repurchase or redeem any debt security of the Company or the Guarantor,
as the case may be, that ranks junior in interest to the Securities of such
series or the Guarantee in respect thereof, as the case may be, or make any
guarantee payments with respect to any guarantee by the Company or the
Guarantor, as the case may be, of the debt securities of any Subsidiary of the
Company or the Guarantor, as the case may be, if such guarantee ranks junior in
interest to the Securities of such series or the Guarantee in respect thereof,
as the case may be (other than (i) dividends or distributions on the Capital
Stock of the Company paid or made to the Guarantor and dividends or
distributions in Common Stock of the Company or the Guarantor, as the case may
be, (ii) redemptions or purchases of any rights outstanding under a shareholder
rights plan of the Company or the Guarantor, as the case may be, or any
successor to such rights plan, or the

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declaration of a dividend of such rights or the issuance of stock under such
plans in the future, (iii) payments under any Preferred Securities Guarantee,
and (iv) purchases of Common Stock related to the issuance of Common Stock under
any benefit plans of the Company, the Guarantor or its Subsidiaries, as the case
may be, for their respective directors, officers or employees) if at such time
(1) there shall have occurred any event of which the Company or the Guarantor,
as the case may be, has actual knowledge that (A) with the giving of notice or
the lapse of time or both, would constitute an Event of Default hereunder and
(B) in respect of which the Company or the Guarantor, as the case may be, shall
not have taken reasonable steps to cure, (2) the Guarantor shall be in default
with respect to its payment of any obligations under the related Preferred
Securities Guarantee or (3) the Company shall have given notice of its election
to begin an Extension Period as provided herein with respect to the Securities
of such series and shall not have rescinded such notice, or such Extension
Period, or any extension thereof, shall be continuing.

     Section 10.11.  Payment of Expenses of each ACE Trust.

     The Guarantor covenants for the benefit of the Holders of each series of
Securities which is held by an ACE Trust to pay or cause to be paid all of the
obligations, costs and expenses of each ACE Trust (other than payments in
respect of Trust Securities) in accordance with the provisions of its Trust
Agreement and to pay the taxes of such ACE Trust in accordance with the
provisions of its Trust Agreement in order to permit such ACE Trust to make
distributions on and redemptions of its Preferred Securities in accordance with
such Trust Agreement.

     Section 10.12.  Ownership of Common Securities.

     The Company covenants, as to each series of Securities issued to an ACE
Trust in connection with the issuance of Preferred Securities and Common
Securities by that ACE Trust, (a) to maintain directly or indirectly 100%
ownership of the Common Securities of such ACE Trust; provided, however, that
any permitted successor of the Company hereunder may succeed to the Company's
ownership of such Common Securities, (b) not to voluntarily dissolve, wind-up or
liquidate such ACE Trust, except in connection with (i) a distribution of the
Securities of such series to the holders of Preferred Securities and Common
Securities in liquidation of such ACE Trust, (ii) the redemption of all of the
Preferred Securities and Common Securities of such ACE Trust or (iii) certain
mergers, consolidations or amalgamations, each as permitted by the Trust
Agreement of such ACE Trust and (c) to use its reasonable efforts, consistent
with the terms and provisions of the related Trust Agreement, to cause such ACE
Trust to remain classified as a grantor trust and not an association taxable as
a corporation for United States federal income tax purposes.

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                                   ARTICLE 11

                            Redemption of Securities

     Section 11.1.  Applicability of Article.

     Redemption of Securities of any series at the option of the Company as
permitted or required by the terms of such Securities shall be made in
accordance with the terms of such Securities and (except as otherwise provided
herein or pursuant hereto) this Article.

     Section 11.2.  Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by
or pursuant to a Board Resolution.  In case of any redemption at the election of
the Company of (a) less than all of the Securities of any series or (b) all of
the Securities of any series, with the same issue date, interest rate or
formula, Stated Maturity and other terms, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall
be satisfactory to the Trustee), notify the Trustee of such Redemption Date and
of the principal amount of Securities of such series to be redeemed.  If the
Securities of a series are held by an ACE Trust, the Company shall also deliver
a copy of such notice to the Property Trustee of such ACE Trust.

     Section 11.3.  Selection by Trustee of Securities to be Redeemed.

     If less than all of the Securities of any series with the same issue date,
interest rate or formula, Stated Maturity and other terms are to be redeemed,
the particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of portions of the principal amount of Registered Securities of such
series; provided, however, that no such partial redemption shall reduce the
portion of the principal amount of a Registered Security of such series not
redeemed to less than the minimum denomination for a Security of such series
established herein or pursuant hereto.

     The Trustee shall promptly notify the Company and the Security Registrar
(if other than itself) in writing of the Securities selected for redemption and,
in the case of any Securities selected for partial redemption, the principal
amount thereof to be redeemed.

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

     Unless otherwise specified in or pursuant to this Indenture or the
Securities of any series, if any Security selected for partial redemption is
converted into other securities of the Company

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<PAGE>

or exchanged for securities of the Guarantor or another issuer in part before
termination of the conversion or exchange right with respect to the portion of
the Security so selected, the converted portion of such Security shall be deemed
(so far as may be) to be the portion selected for redemption. Securities which
have been converted or exchanged during a selection of Securities to be redeemed
shall be treated by the Trustee as Outstanding for the purpose of such
selection.

     Section 11.4.  Notice of Redemption.

     Notice of redemption shall be given in the manner provided in Section 1.6,
not less than 30 nor more than 60 days prior to the Redemption Date, unless a
shorter period is specified in the Securities to be redeemed, to the Holders of
Securities to be redeemed.  Failure to give notice by mailing in the manner
herein provided to the Holder of any Registered Securities designated for
redemption as a whole or in part, or any defect in the notice to any such
Holder, shall not affect the validity of the proceedings for the redemption of
any other Securities or portion thereof.

     Any notice that is mailed to the Holder of any Registered Securities in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not such Holder receives the notice.

     All notices of redemption shall state:

          (1)  the Redemption Date,

          (2)  the Redemption Price,

          (3) if less than all Outstanding Securities of any series are to be
     redeemed, the identification (and, in the case of partial redemption, the
     principal amount) of the particular Security or Securities to be redeemed,

          (4)  in case any Security is to be redeemed in part only, the notice
     which relates to such Security shall state that on and after the Redemption
     Date, upon surrender of such Security, the Holder of such Security will
     receive, without charge, a new Security or Securities of authorized
     denominations for the principal amount thereof remaining unredeemed,

          (5) that, on the Redemption Date, the Redemption Price shall become
     due and payable upon each such Security or portion thereof to be redeemed,
     and, if applicable, that interest thereon shall cease to accrue on and
     after said date,

          (6) the place or places where such Securities, together (in the case
     of Bearer Securities) with all Coupons appertaining thereto, if any,
     maturing after the Redemption Date, are to be surrendered for payment of
     the Redemption Price and any accrued interest and Additional Amounts
     pertaining thereto,

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           (7)  that the redemption is for a sinking fund, if such is the case,

           (8)  that, unless otherwise specified in such notice, Bearer
     Securities of any series, if any, surrendered for redemption must be
     accompanied by all Coupons maturing subsequent to the date fixed for
     redemption or the amount of any such missing Coupon or Coupons will be
     deducted from the Redemption Price, unless security or indemnity
     satisfactory to the Company, the Guarantor, the Trustee and any Paying
     Agent is furnished,

           (9) if Bearer Securities of any series are to be redeemed and no
     Registered Securities of such series are to be redeemed, and if such Bearer
     Securities may be exchanged for Registered Securities not subject to
     redemption on the Redemption Date pursuant to Section 3.5 or otherwise, the
     last date, as determined by the Company, on which such exchanges may be
     made,

           (10) in the case of Securities of any series that are convertible
     into Common Stock of the Company or exchangeable for other securities, the
     conversion or exchange price or rate, the date or dates on which the right
     to convert or exchange the principal of the Securities of such series to be
     redeemed will commence or terminate and the place or places where such
     Securities may be surrendered for conversion or exchange, and

           (11) the CUSIP number or the Euroclear or the Cedel reference numbers
     of such Securities, if any (or any other numbers used by a Depository to
     identify such Securities).

     A notice of redemption published as contemplated by Section 1.6 need not
identify particular Registered Securities to be redeemed.

     Notice of redemption of Securities to be redeemed at the election of the
Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company.

     Section 11.5.  Deposit of Redemption Price.

     On or prior to any Redemption Date, the Company or the Guarantor shall
deposit, with respect to the Securities of any series called for redemption
pursuant to Section 11.4, with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent or the Guarantor is acting as Paying
Agent, segregate and hold in trust as provided in Section 10.3) an amount of
money in the applicable Currency sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date, unless
otherwise specified pursuant to Section 3.1 or in the Securities of such series)
any accrued interest (including any Additional Interest) on and Additional
Amounts with respect thereto, all such Securities or portions thereof which are
to be redeemed on that date.

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     Section 11.6.  Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company and the Guarantor shall default in the payment of the Redemption Price
and accrued interest) such Securities shall cease to bear interest and the
Coupons for such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void.  Upon surrender of
any such Security for redemption in accordance with said notice, together with
all Coupons, if any, appertaining thereto maturing after the Redemption Date,
such Security shall be paid by the Company at the Redemption Price, together
with any accrued interest and Additional Amounts to the Redemption Date;
provided, however, that, except as otherwise provided in or pursuant to this
Indenture or the Bearer Securities of such series, installments of interest on
Bearer Securities whose Stated Maturity is on or prior to the Redemption Date
shall be payable only upon presentation and surrender of Coupons for such
interest (at an Office or Agency located outside the United States except as
otherwise provided in Section 10.2), and provided, further, that, except as
otherwise specified in or pursuant to this Indenture or the Registered
Securities of such series, installments of interest on Registered Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the Regular Record Dates therefor
according to their terms and the provisions of Section 3.7.

     If any Bearer Security surrendered for redemption shall not be accompanied
by all appurtenant Coupons maturing after the Redemption Date, such Security may
be paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing Coupons, or the surrender of such missing Coupon or
Coupons may be waived by the Company and the Trustee if there be furnished to
them such security or indemnity as they may require to save each of them and any
Paying Agent harmless.  If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent any such missing Coupon in respect
of which a deduction shall have been made from the Redemption Price, such Holder
shall be entitled to receive the amount so deducted; provided, however, that any
interest or Additional Amounts represented by Coupons shall be payable only upon
presentation and surrender of those Coupons at an Office or Agency for such
Security located outside of the United States except as otherwise provided in
Section 10.2.

     If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal and any premium, until paid, shall bear
interest from the Redemption Date at the rate prescribed therefor in the
Security.

     Section 11.7.  Securities Redeemed in Part.

     Any Registered Security which is to be redeemed only in part shall be
surrendered at any Office or Agency for such Security (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) and the

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Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security without service charge, a new Registered Security or
Securities of the same series, containing identical terms and provisions, of any
authorized denomination as requested by such Holder in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered. If a Security in global form is so surrendered, the
Company shall execute, and the Trustee shall authenticate and deliver to the
U.S. Depository or other Depository for such Security in global form as shall be
specified in the Company Order with respect thereto to the Trustee, without
service charge, a new Security in global form in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Security in global
form so surrendered.

     Section 11.8.  Right of Redemption of Securities Issued to an ACE Trust.

     In the case of the Securities of a series issued to an ACE Trust, except as
otherwise specified as contemplated by Section 3.1, if a Special Event in
respect of such ACE Trust shall occur and be continuing, the Company may, at its
option, redeem the Securities of such series within 90 days of the occurrence of
such Special Event, in whole but not in part, subject to the provisions of this
Section 11.8 and the other provisions of this Article 11.  Unless otherwise
specified in or pursuant to this Indenture or the Securities of such series, the
redemption price for any Security so redeemed pursuant to this Section 11.8
shall be equal to 100% of the principal amount of such Securities then
Outstanding plus accrued and unpaid interest, including any Additional Interest,
to the date fixed for redemption.

                                  ARTICLE 12

                                 Sinking Funds

     Section 12.1.  Applicability of Article.

     The provisions of this Article shall be applicable to any sinking fund for
the retirement of Securities of a series, except as otherwise permitted or
required in or pursuant to this Indenture or any Security of such series issued
pursuant to this Indenture.

     The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of such series is herein referred to as an "optional sinking
fund payment".  If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 12.2.  Each sinking fund payment shall be applied to the redemption
of Securities of any series as provided for by the terms of Securities of such
series and this Indenture.

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     Section 12.2.  Satisfaction of Sinking Fund Payments with Securities.

     The Company or the Guarantor may, in satisfaction of all or any part of any
sinking fund payment with respect to the Securities of any series to be made
pursuant to the terms of such Securities (1) deliver Outstanding Securities of
such series (other than any of such Securities previously called for redemption
or any of such Securities in respect of which cash shall have been released to
the Company), together in the case of any Bearer Securities of such series with
all unmatured Coupons appertaining thereto, and (2) apply as a credit Securities
of such series which have been redeemed either at the election of the Company
pursuant to the terms of such series of Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, provided that such series of Securities have not been previously so
credited.  Such Securities shall be received and credited for such purpose by
the Trustee at the Redemption Price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.  If, as a result of the delivery or credit
of Securities of any series in lieu of cash payments pursuant to this Section
12.2, the principal amount of Securities of such series to be redeemed in order
to satisfy the remaining sinking fund payment shall be less than $100,000, the
Trustee need not call Securities of such series for redemption, except upon
Company Request or Guarantor Request, and such cash payment shall be held by the
Trustee or a Paying Agent and applied to the next succeeding sinking fund
payment, provided, however, that the Trustee or such Paying Agent shall at the
request of the Company or the Guarantor from time to time pay over and deliver
to the Company or the Guarantor, as the case may be, any cash payment so being
held by the Trustee or such Paying Agent upon delivery by the Company or the
Guarantor to the Trustee of Securities of that series purchased by the Company
or the Guarantor having an unpaid principal amount equal to the cash payment
requested to be released to the Company or the Guarantor.

     Section 12.3.  Redemption of Securities for Sinking Fund.

     Not less than 75 days prior to each sinking fund payment date for any
series of Securities, the Company shall deliver to the Trustee an Officer's
Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that series pursuant to Section 12.2, and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
will also deliver to the Trustee any Securities to be so credited and not
theretofore delivered.  If such Officer's Certificate shall specify an optional
amount to be added in cash to the next ensuing mandatory sinking fund payment,
the Company shall thereupon be obligated to pay the amount therein specified.
Not less than 60 days before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 11.3 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the
manner provided in Section 11.4.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 11.6 and 11.7.

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                                  ARTICLE 13

                       Repayment at the Option of Holders

     Section 13.1.  Applicability of Article.

     Securities of any series which are repayable at the option of the Holders
thereof before their Stated Maturity shall be repaid in accordance with the
terms of the Securities of such series. The repayment of any principal amount of
Securities pursuant to such option of the Holder to require repayment of
Securities before their Stated Maturity, for purposes of Section 3.9, shall not
operate as a payment, redemption or satisfaction of the Indebtedness represented
by such Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be
cancelled. Notwithstanding anything to the contrary contained in this Section
13.1, in connection with any repayment of Securities, the Company may arrange
for the purchase of any Securities by an agreement with one or more investment
bankers or other purchasers to purchase such Securities by paying to the Holders
of such Securities on or before the close of business on the repayment date an
amount not less than the repayment price payable by the Company on repayment of
such Securities, and the obligation of the Company to pay the repayment price of
such Securities shall be satisfied and discharged to the extent such payment is
so paid by such purchasers.

                                  ARTICLE 14

                        Securities in Foreign Currencies

     Section 14.1.  Applicability of Article.

     Whenever this Indenture provides for (i) any action by, or the
determination of any of the rights of, Holders of Securities of any series in
which not all of such Securities are denominated in the same Currency, or (ii)
any distribution to Holders of Securities, in the absence of any provision to
the contrary in the form of Security of any particular series or pursuant to
this Indenture or the Securities, any amount in respect of any Security
denominated in a Currency other than Dollars shall be treated for any such
action or distribution as that amount of Dollars that could be obtained for such
amount on such reasonable basis of exchange and as of the record date with
respect to Registered Securities of such series (if any) for such action,
determination of rights or distribution (or, if there shall be no applicable
record date, such other date reasonably proximate to the date of such action,
determination of rights or distribution) as the Company or the Guarantor may
specify in a written notice to the Trustee.

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                                  ARTICLE 15

                       Meetings of Holders of Securities

     Section 15.1.  Purposes for Which Meetings May Be Called.

     A meeting of Holders of Securities of any series may be called at any time
and from time to time pursuant to this Article to make, give or take any
request, demand, authorization, direction, notice, consent, waiver or other Act
provided by this Indenture to be made, given or taken by Holders of Securities
of such series.

     Section 15.2.  Call, Notice and Place of Meetings.

           (1) The Trustee may at any time call a meeting of Holders of
     Securities of any series for any purpose specified in Section 15.1, to be
     held at such time and at such place in the Borough of Manhattan, The City
     of New York, or, if Securities of such series have been issued in whole or
     in part as Bearer Securities, in London or in such place outside the United
     States as the Trustee shall determine. Notice of every meeting of Holders
     of Securities of any series, setting forth the time and the place of such
     meeting and in general terms the action proposed to be taken at such
     meeting, shall be given, in the manner provided in Section 1.6, not less
     than 21 nor more than 180 days prior to the date fixed for the meeting.

           (2) In case at any time the Company (by or pursuant to a Board
     Resolution), the Guarantor (by or pursuant to a Guarantor's Board
     Resolution) or the Holders of at least 10% in principal amount of the
     Outstanding Securities of any series shall have requested the Trustee to
     call a meeting of the Holders of Securities of such series for any purpose
     specified in Section 15.1, by written request setting forth in reasonable
     detail the action proposed to be taken at the meeting, and the Trustee
     shall not have mailed notice of or made the first publication of the notice
     of such meeting within 21 days after receipt of such request (whichever
     shall be required pursuant to Section 1.6) or shall not thereafter proceed
     to cause the meeting to be held as provided herein, then the Company, the
     Guarantor or the Holders of Securities of such series in the amount above
     specified, as the case may be, may determine the time and the place in the
     Borough of Manhattan, The City of New York, or, if Securities of such
     series are to be issued as Bearer Securities, in London for such meeting
     and may call such meeting for such purposes by giving notice thereof as
     provided in clause (1) of this Section.

     Section 15.3.  Persons Entitled to Vote at Meetings.

     To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders.  The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons

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entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel, any representatives of the Guarantor and its counsel
and any representatives of the Company and its counsel.

     Section 15.4.  Quorum; Action.

     The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for any meeting of
Holders of Securities of such series.  In the absence of a quorum within 30
minutes after the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Securities of such series, be dissolved.
In any other case the meeting may be adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such meeting.  In the absence of a quorum at any reconvened meeting, such
reconvened meeting may be further adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such reconvened meeting.  Notice of the reconvening of any adjourned meeting
shall be given as provided in Section 15.2(1), except that such notice need be
given only once not less than five days prior to the date on which the meeting
is scheduled to be reconvened.  Notice of the reconvening of an adjourned
meeting shall state expressly the percentage, as provided above, of the
principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

     Except as limited by the proviso to Section 9.2, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 9.2, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other Act which this Indenture expressly provides may
be made, given or taken by the Holders of a specified percentage, which is less
than a majority, in principal amount of the Outstanding Securities of a series
may be adopted at a meeting or an adjourned meeting duly reconvened and at which
a quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Outstanding Securities of such
series.

     Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the Coupons
appertaining thereto, whether or not such Holders were present or represented at
the meeting.

     Section 15.5.  Determination of Voting Rights; Conduct and Adjournment of
Meetings.

           (1) Notwithstanding any other provisions of this Indenture, the
     Trustee may make such reasonable regulations as it may deem advisable for
     any meeting of Holders of Securities of such series in regard to proof of
     the holding of Securities of such series and of the appointment of proxies
     and in regard to the appointment and duties of inspectors of votes, the
     submission and examination of proxies, certificates and other evidence of
     the right to vote, and such other matters concerning the conduct of the
     meeting as it shall
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     deem appropriate.  Except as otherwise permitted or required by any
     such regulations, the holding of Securities shall be proved in the manner
     specified in Section 1.4 and the appointment of any proxy shall be proved
     in the manner specified in Section 1.4 or by having the signature of the
     person executing the proxy witnessed or guaranteed by any trust company,
     bank or banker authorized by Section 1.4 to certify to the holding of
     Bearer Securities.  Such regulations may provide that written instruments
     appointing proxies, regular on their face, may be presumed valid and
     genuine without the proof specified in Section 1.4 or other proof.

           (2) The Trustee shall, by an instrument in writing, appoint a
     temporary chairman of the meeting, unless the meeting shall have been
     called by the Company or by Holders of Securities as provided in Section
     15.2(2), in which case the Company, the Guarantor or the Holders of
     Securities of the series calling the meeting, as the case may be, shall in
     like manner appoint a temporary chairman. A permanent chairman and a
     permanent secretary of the meeting shall be elected by vote of the Persons
     entitled to vote a majority in principal amount of the Outstanding
     Securities of such series represented at the meeting.

           (3) At any meeting, each Holder of a Security of such series or proxy
     shall be entitled to one vote for each $1,000 principal amount of
     Securities of such series held or represented by him; provided, however,
     that no vote shall be cast or counted at any meeting in respect of any
     Security challenged as not Outstanding and ruled by the chairman of the
     meeting to be not Outstanding. The chairman of the meeting shall have no
     right to vote, except as a Holder of a Security of such series or proxy.

           (4) Any meeting of Holders of Securities of any series duly called
     pursuant to Section 15.2 at which a quorum is present may be adjourned from
     time to time by Persons entitled to vote a majority in principal amount of
     the Outstanding Securities of such series represented at the meeting; and
     the meeting may be held as so adjourned without further notice.

     Section 15.6.  Counting Votes and Recording Action of Meetings.

     The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them.  The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in triplicate of all votes cast at the meeting.  A record, at least in
triplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 15.2 and, if
applicable,

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Section 15.4.  Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and the Guarantor, and another to the
Trustee to be preserved by the Trustee, the latter to have attached thereto the
ballots voted at the meeting.  Any record so signed and verified shall be
conclusive evidence of the matters therein stated.

                                  ARTICLE 16

                          Subordination Of Securities

     Section 16.1.  Agreement to Subordinate.

     The Company covenants and agrees, and each Holder of Securities issued
hereunder and under any indenture supplemental hereto or pursuant to a Board
Resolution, Officer's Certificate and Guarantor's Officer's Certificate
("Additional Provisions") by such Holder's acceptance thereof likewise covenants
and agrees, that all Securities shall be issued subject to the provisions of
this Article 16; and each Holder of a Security, whether upon original issue or
upon transfer or assignment thereof, accepts and agrees to be bound by such
provisions.

     The payment by the Company of the principal of, any premium and interest
(including any Additional Interest) on and any Additional Amounts with respect
to all Securities of each series issued hereunder and under any Additional
Provisions shall, to the extent and in the manner hereinafter set forth, be
subordinate in right of payment to the prior payment in full of all Company
Senior Indebtedness with respect to such series, whether outstanding at the date
of this Indenture or thereafter incurred.

     No provision of this Article 16 shall prevent the occurrence of any default
or Event of Default hereunder.

     Section 16.2.  Default on Company Senior Indebtedness.

     In the event and during the continuation of any default by the Company in
the payment of principal, premium, interest or any other amount due on any
Company Senior Indebtedness with respect to the Securities of any series, or in
the event that the maturity of any Company Senior Indebtedness with respect to
the Securities of any series has been accelerated because of a default, then, in
either case, no payment shall be made by the Company with respect to the
principal (including redemption and sinking fund payments) of, any premium or
interest (including any Additional Interest) on, or any Additional Amounts with
respect to, the Securities of such series.

     In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee when such payment is prohibited by the preceding
paragraph of this Section 16.2, such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the holders of such Company
Senior Indebtedness or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Company Senior

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Indebtedness may have been issued, as their respective interests may appear, but
only to the extent that the holders of such Company Senior Indebtedness (or
their representative or representatives or a trustee) notify the Trustee in
writing within 90 days of such payment of the amounts then due and owing on such
Company Senior Indebtedness and only the amounts specified in such notice to the
Trustee shall be paid to the holders of such Company Senior Indebtedness.

     Section 16.3.  Liquidation; Dissolution; Bankruptcy.

     Upon any payment by the Company or distribution of assets of the Company of
any kind or character, whether in cash, property or securities, to creditors
upon any dissolution, winding-up, liquidation or reorganization of the Company,
whether voluntary or involuntary, or in bankruptcy, insolvency, receivership or
other proceedings, all amounts due upon all Company Senior Indebtedness with
respect to the Securities of any series shall first be paid in full, or payment
thereof provided for in money in accordance with its terms, before any payment
is made by the Company on account of the principal of, premium or interest
(including any Additional Interest) on, or Additional Amounts with respect to,
the Securities of such series; and upon any such dissolution, winding-up,
liquidation or reorganization, or in any such bankruptcy, insolvency,
receivership or other proceeding, any payment by the Company, or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders or the Trustee would be entitled to receive
from the Company, except for the provisions of this Article 16, shall be paid by
the Company or by any receiver, trustee in bankruptcy, liquidating trustee,
agent or other Person making such payment or distribution, or by the Holders or
by the Trustee under this Indenture if received by them or it, directly to the
holders of such Company Senior Indebtedness (pro rata to such holders on the
basis of the respective amounts of such Company Senior Indebtedness held by such
holders, as calculated by the Company) or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing such Company Senior Indebtedness may have been
issued, as their respective interests may appear, to the extent necessary to pay
such Company Senior Indebtedness in full, in money or money's worth, after
giving effect to any concurrent payment or distribution to or for the holders of
such Company Senior Indebtedness, before any payment or distribution is made to
the Holders of the Securities of such series or to the Trustee.

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

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Indebtedness in full in money in accordance with its terms, after giving effect
to any concurrent payment or distribution to or for the benefit of the holders
of such Company Senior Indebtedness.

     For purposes of this Article 16, the words "cash, property or securities"
shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article 16 with respect to
the Securities of the relevant series to the payment of all Company Senior
Indebtedness with respect to the Securities of such series that may at the time
be outstanding, provided that (i) such Company Senior Indebtedness is assumed by
the new corporation, if any, resulting from any such reorganization or
readjustment, and (ii) the rights of the holders of such Company Senior
Indebtedness are not, without the consent of such holders, altered by such
reorganization or readjustment.  The consolidation of the Company with, or the
merger of the Company into, another Person or the liquidation or dissolution of
the Company following the conveyance, transfer or lease of its property as an
entirety, or substantially as an entirety, to another Person upon the terms and
conditions provided for in Sections 8.1 and 8.2 of this Indenture shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes
of this Section 16.3 if such other Person shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions stated
in Sections 8.1 and 8.2 of this Indenture.  Nothing in Section 16.2 or in this
Section 16.3 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.6 of this Indenture.

     Section 16.4.  Subrogation.

     Subject to the payment in full of all Company Senior Indebtedness with
respect to the Securities of any series, the rights of the Holders of the
Securities of such series shall be subrogated to the rights of the holders of
such Company Senior Indebtedness to receive payments or distributions of cash,
property or securities of the Company applicable to such Company Senior
Indebtedness until the principal of, any premium and interest (including any
Additional Interest) on, and any Additional Amounts with respect to, the
Securities of such series shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of such Company Senior
Indebtedness of any cash, property or securities to which the Holders or the
Trustee would be entitled except for the provisions of this Article 16, and no
payment over pursuant to the provisions of this Article 16 to or for the benefit
of the holders of such Company Senior Indebtedness by Holders of the Securities
of such series or the Trustee, shall, as between the Company, its creditors
other than holders of such Company Senior Indebtedness, and the Holders of the
Securities of such series, be deemed to be a payment by the Company to or on
account of such Company Senior Indebtedness.  It is understood that the
provisions of this Article 16 are and are intended solely for the purposes of
defining the relative rights of the Holders of the Securities of each series, on
the one hand, and the holders of the Company Senior Indebtedness with respect to
the Securities of such series on the other hand.

                                       97
<PAGE>

     Nothing contained in this Article 16 or elsewhere in this Indenture, any
Additional Provisions or in the Securities of any series is intended to or shall
impair, as between the Company, its creditors other than the holders of Company
Senior Indebtedness with respect to the Securities of such series, and the
Holders of the Securities of such series, the obligation of the Company, which
is absolute and unconditional, to pay to the Holders of the Securities of such
series the principal of, any premium and interest (including any Additional
Interest) on, and any Additional Amounts with respect to, the Securities of such
series as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders of the Securities of such series and creditors of the Company, other
than the holders of such Company Senior Indebtedness, nor shall anything herein
or therein prevent the Trustee or the Holder of any Security of such series from
exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article 16 of the
holders of such Company Senior Indebtedness in respect of cash, property or
securities of the Company, as the case may be, received upon the exercise of any
such remedy.

     Upon any payment or distribution of assets of the Company referred to in
this Article 16, the Trustee, subject to the provisions of Article 6 of this
Indenture, and the Holders shall be entitled to conclusively rely upon any order
or decree made by any court of competent jurisdiction in which such dissolution,
winding-up, liquidation or reorganization proceedings are pending, or a
certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent
or other Person making such payment or distribution, delivered to the Trustee or
to the Holders of the Securities of any series, for the purposes of ascertaining
the Persons entitled to participate in such distribution, the holders of Company
Senior Indebtedness with respect to the Securities of such series and other
indebtedness of the Company, as the case may be, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article 16.

     Section 16.5.  Trustee to Effectuate Subordination.

     Each Holder of Securities by such Holder's acceptance thereof authorizes
and directs the Trustee on such Holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this
Article 16 and appoints the Trustee such Holder's attorney-in-fact for any and
all such purposes.

     Section 16.6.  Notice by the Company.

     The Company shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Company that would prohibit the making of
any payment of monies to or by the Trustee in respect of the Securities of any
series pursuant to the provisions of this Article 16.  Notwithstanding the
provisions of this Article 16 or any other provision of this Indenture or any
Additional Provisions, the Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment of monies
to or by the Trustee in respect of the Securities of any series pursuant to the
provisions of this Article 16, unless and until a Responsible Officer of the
Trustee shall have received written notice thereof from the

                                       98
<PAGE>

Company or a holder or holders of Company Senior Indebtedness with respect to
the Securities of such series or from any trustee therefor; and before the
receipt of any such written notice, the Trustee, subject to the provisions of
Article 6 of this Indenture, shall be entitled in all respects to assume that no
such facts exist; provided, however, that if the Trustee shall not have received
the notice provided for in this Section 16.6 at least two Business Days prior to
the date upon which by the terms hereof any money may become payable for any
purpose (including, without limitation, the payment of the principal of, any
premium or interest (including any Additional Interest) on, or any Additional
Amounts with respect to, any Security of such series), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purposes for which
they were received, and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to such date.

     The Trustee, subject to the provisions of Article 6 of this Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by a Person representing himself to be a holder of Company Senior Indebtedness
with respect to the Securities of any series (or a trustee on behalf of such
holder), to establish that such notice has been given by a holder of such
Company Senior Indebtedness or a trustee on behalf of any such holder or
holders.  In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of such
Company Senior Indebtedness to participate in any payment or distribution
pursuant to this Article 16, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of such
Company Senior Indebtedness held by such Person, the extent to which such Person
is entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article 16, and, if such
evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.

     Upon any payment or distribution of assets of the Company referred to in
this Article 16, the Trustee and the Holders shall be entitled to rely upon any
order or decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding-up or similar case or proceeding is pending, or a certificate of the
trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities of
any series, for the purpose of ascertaining the Persons entitled to participate
in such payment or distribution, the holders of Company Senior Indebtedness with
respect to the Securities of such series and other indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 16.

     Section 16.7. Rights of the Trustee; Holders of Company Senior
Indebtedness.

     The Trustee in its individual capacity shall be entitled to all the rights
set forth in this Article 16 in respect of any Company Senior Indebtedness with
respect to the Securities of any series at any time held by it, to the same
extent as any other holder of such Company Senior

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<PAGE>

Indebtedness, and nothing in this Indenture or any Additional Provisions shall
deprive the Trustee of any of its rights as such holder.

     With respect to the holders of Company Senior Indebtedness with respect to
the Securities of any series, the Trustee undertakes to perform or to observe
only such of its covenants and obligations as are specifically set forth in this
Article 16, and no implied covenants or obligations with respect to the holders
of such Company Senior Indebtedness shall be read into this Indenture or any
Additional Provisions against the Trustee.  The Trustee shall not be deemed to
owe any fiduciary duty to the holders of such Company Senior Indebtedness and,
subject to the provisions of Article 6 of this Indenture, the Trustee shall not
be liable to any holder of such Company Senior Indebtedness if it shall pay over
or deliver to Holders of the Securities of such series, the Company or any other
Person money or assets to which any holder of such Company Senior Indebtedness
shall be entitled by virtue of this Article 16 or otherwise.

     Nothing in this Article 16 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.6.

     Section 16.8.  Subordination May Not Be Impaired

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

     Without in any way limiting the generality of the foregoing paragraph, the
holders of Company Senior Indebtedness with respect to the Securities of any
series may, at any time and from time to time, without the consent of or notice
to the Trustee or the Holders of Securities of such series, without incurring
responsibility to such Holders and without impairing or releasing the
subordination provided in this Article 16 or the obligations hereunder of the
Holders of the Securities of such series to the holders of such Company Senior
Indebtedness, do any one or more of the following:  (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, such
Company Senior Indebtedness, or otherwise amend or supplement in any manner such
Company Senior Indebtedness or any instrument evidencing the same or any
agreement under which such Company Senior Indebtedness is outstanding; (ii)
sell, exchange, release or otherwise deal with any property pledged, mortgaged
or otherwise securing such Company Senior Indebtedness; (iii) release any Person
liable in any manner for the collection of such Company Senior Indebtedness; and
(iv) exercise or refrain from exercising any rights against the Company and any
other Person.

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                                  ARTICLE 17

                            Guarantee And Indemnity

     Section 17.1.  The Guarantee.

     The Guarantor hereby unconditionally guarantees to each Holder of a
Security authenticated and delivered by the Trustee the due and punctual payment
of the principal of, any premium and interest (including any Additional
Interest) on, any Additional Amounts, and, if applicable, any Additional Sums
with respect to such Security and the due and punctual payment of the sinking
fund payments (if any) provided for pursuant to the terms of such Security, when
and as the same shall become due and payable, whether at maturity, by
acceleration, redemption, repayment or otherwise, in accordance with the terms
of such Security and of this Indenture.  In case of the failure of the Company
punctually to pay any such principal, premium, interest (including any
Additional Interest), Additional Amounts, Additional Sums or sinking fund
payment, the Guarantor hereby agrees to cause any such payment to be made
punctually when and as the same shall become due and payable, whether at
maturity, upon acceleration, redemption, repayment or otherwise, and as if such
payment were made by the Company.

     Section 17.2.  Net Payments.

     All payments of principal of and premium, if any, interest (including any
Additional Interest) and any other amounts on, or in respect of, the Securities
of any series or any Coupon appertaining thereto shall be made by the Guarantor
without withholding or deduction at source for, or on account of, any present or
future taxes, fees, duties, assessments or governmental charges of whatever
nature imposed or levied by or on behalf of the Cayman Islands or Bermuda (each,
a "taxing jurisdiction") or any political subdivision or taxing authority
thereof or therein, unless such taxes, fees, duties, assessments or governmental
charges are required to be withheld or deducted by (i) the laws (or any
regulations or ruling promulgated thereunder) of a taxing jurisdiction or any
political subdivision or taxing authority thereof or therein or (ii) an official
position regarding the application, administration, interpretation or
enforcement of any such laws, regulations or rulings (including, without
limitation, a holding by a court of competent jurisdiction or by a taxing
authority in a taxing jurisdiction or any political subdivision thereof).  If a
withholding or deduction at source is required, the Guarantor shall, subject to
certain limitations and exceptions set forth below, pay to the Holder of any
such Security or any Coupon appertaining thereto such Additional Amounts as may
be necessary so that every net payment of principal, premium, if any, interest
or any other amount made to such Holder, after such withholding or deduction,
shall not be less than the amount provided for in such Security, any Coupons
appertaining thereto and this Indenture to be then due and payable; provided,
however, that the Guarantor shall not be required to make payment of such
Additional Amounts for or on account of:

          (1) any tax, fee, duty, assessment or governmental charge of whatever
     nature which would not have been imposed but for the fact that such Holder:
     (A) was a resident, domiciliary or national of, or engaged in business or
     maintained a permanent

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<PAGE>

     establishment or was physically present in, the relevant taxing
     jurisdiction or any political subdivision thereof or otherwise had some
     connection with the relevant taxing jurisdiction other than by reason of
     the mere ownership of, or receipt of payment under, such Security; (B)
     presented such Security for payment in the relevant taxing jurisdiction or
     any political subdivision thereof, unless such Security could not have been
     presented for payment elsewhere; or (C) presented such Security more than
     thirty (30) days after the date on which the payment in respect of such
     Security first became due and payable or provided for, whichever is later,
     except to the extent that the Holder would have been entitled to such
     Additional Amounts if it had presented such Security for payment on any day
     within such period of thirty (30) days;

          (2) any estate, inheritance, gift, sale, transfer, personal property
     or similar tax, assessment or other governmental charge;

          (3) any tax, assessment or other governmental charge that is imposed
     or withheld by reason of the failure by the Holder or the beneficial owner
     of such Security to comply with any reasonable request by the Guarantor
     addressed to the Holder within 90 days of such request (A) to provide
     information concerning the nationality, residence or identity of the Holder
     or such beneficial owner or (B) to make any declaration or other similar
     claim or satisfy any information or reporting requirement, which, in the
     case of (A) or (B), is required or imposed by statute, treaty, regulation
     or administrative practice of the relevant taxing jurisdiction or any
     political subdivision thereof as a precondition to exemption from all or
     part of such tax, assessment or other governmental charge; or

          (4) any combination of items (1), (2) and (3);

nor shall Additional Amounts be paid with respect to any payment of the
principal of, or premium, if any, interest or any other amounts on, any such
Security to any Holder who is a fiduciary or partnership or other than the sole
beneficial owner of such Security to the extent such payment would be required
by the laws of the relevant taxing jurisdiction (or any political subdivision or
relevant taxing authority thereof or therein) to be included in the income for
tax purposes of a beneficiary or partner or settlor with respect to such
fiduciary or a member of such partnership or a beneficial owner who would not
have been entitled to such Additional Amounts had it been the Holder of the
Security.

     Whenever in this Indenture there is mentioned, in any context, the payment
of the principal of or any premium, interest or any other amounts on, or in
respect of, any Security of any series or any Coupon or the net proceeds
received on the sale or exchange of any Security of any series, such mention
shall be deemed to include mention of the payment of Additional Amounts provided
by the terms of such series established hereby or pursuant hereto to the extent
that, in such context, Additional Amounts are, were or would be payable in
respect thereof pursuant to such terms, and express mention of the payment of
Additional Amounts (if applicable) in any provision hereof shall not be
construed as excluding the payment of Additional Amounts in those provisions
hereof where such express mention is not made.

                                      102
<PAGE>

     Except as otherwise provided in or pursuant to this Indenture or the
Securities of the applicable series, at least 10 days prior to the first
Interest Payment Date with respect to a series of Securities (or if the
Securities of such series shall not bear interest prior to Maturity, the first
day on which a payment of principal is made), and at least 10 days prior to each
date of payment of principal or interest if there has been any change with
respect to the matters set forth in the below-mentioned Guarantor's Officer's
Certificate, the Guarantor shall furnish to the Trustee and the principal Paying
Agent or Paying Agents, if other than the Trustee, a Guarantor's Officer's
Certificate instructing the Trustee and such Paying Agent or Paying Agents
whether such payment of principal of and premium, if any, interest or any other
amounts on the Securities of such series shall be made to Holders of Securities
of such series or the Coupons appertaining thereto without withholding for or on
account of any tax, fee, duty, assessment or other governmental charge described
in this Section 17.2.  If any such withholding shall be required, then such
Guarantor's Officer's Certificate shall specify by taxing jurisdiction the
amount, if any, required to be withheld on such payments to such Holders of
Securities or Coupons, and the Guarantor agrees to pay to the Trustee or such
Paying Agent the Additional Amounts required by this Section 17.2.  The
Guarantor covenants to indemnify the Trustee and any Paying Agent for, and to
hold them harmless against, any loss, liability or expense reasonably incurred
without negligence or bad faith on their part arising out of or in connection
with actions taken or omitted by any of them in reliance on any Guarantor's
Officer's Certificate furnished pursuant to this Section 17.2.

     Section 17.3.  Guarantee Unconditional, etc.

     The Guarantor hereby agrees that its obligations hereunder shall be as
principal and not merely as surety, and shall be absolute, irrevocable and
unconditional, irrespective of, and shall be unaffected by, any invalidity,
irregularity or unenforceability of any Security or this Indenture, any failure
to enforce the provisions of any Security or this Indenture, or any waiver,
modification, consent or indulgence granted with respect thereto by the Holder
of such Security or the Trustee, the recovery of any judgment against the
Company or any action to enforce the same, or any other circumstances which may
otherwise constitute a legal or equitable discharge of a surety or guarantor.
The Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of merger, insolvency or bankruptcy of the
Company, any right to require a proceeding first against the Company, protest or
notice with respect to any such Security or the Indebtedness evidenced thereby
and all demands whatsoever, and covenants that this Guarantee will not be
discharged except by payment in full of the principal of, any premium and
interest (including any Additional Interest) on, and any Additional Amounts,
and, if applicable, any Additional Sums and sinking fund payments required with
respect to, the Securities and the complete performance of all other obligations
contained in the Securities.  The Guarantor further agrees, to the fullest
extent that it lawfully may do so, that, as between the Guarantor, on the one
hand, and the Holders and the Trustee, on the other hand, the Maturity of the
obligations guaranteed hereby may be accelerated as provided in Section 5.2
hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or prohibition extant under any bankruptcy, insolvency, reorganization or other
similar law of any jurisdiction preventing such acceleration in respect of the
obligations guaranteed hereby.

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<PAGE>

     Section 17.4.  Reinstatement.

     This Guarantee shall continue to be effective or be reinstated, as the case
may be, if at any time payment on any Security, in whole or in part, is
rescinded or must otherwise be restored to the Company or the Guarantor upon the
bankruptcy, liquidation or reorganization of the Company or otherwise.

     Section 17.5.  Subrogation.

     The Guarantor shall be subrogated to all rights of the Holder of any
Security against the Company in respect of any amounts paid to such Holder by
the Guarantor pursuant to the provisions of this Guarantee; provided, however,
that the Guarantor shall not be entitled to enforce, or to receive any payments
arising out of or based upon, such right of subrogation until the principal of,
any premium and interest (including any Additional Interest) on, and any
Additional Amounts and, if applicable, any Additional Sums and sinking fund
payments required with respect to, all Securities shall have been paid in full.

     Section 17.6.  Indemnity.

     As a separate and alternative stipulation, the Guarantor unconditionally
and irrevocably agrees that any sum expressed to be payable by the Company under
this Indenture, the Securities or the Coupons but which is for any reason
(whether or not now known or becoming known to the Company, the Guarantor, the
Trustee or any Holder of any Security or Coupon) not recoverable from the
Guarantor on the basis of a guarantee will nevertheless be recoverable from it
as if it were the sole principal debtor and will be paid by it to the Trustee on
demand.  This indemnity constitutes a separate and independent obligation from
the other obligations in this Indenture, gives rise to a separate and
independent cause of action and will apply irrespective of any indulgence
granted by the Trustee or any Holder of any Security or Coupon.

                                  ARTICLE 18

                           Subordination Of Guarantee

     Section 18.1.  Agreement to Subordinate Guarantee.

     The Guarantor covenants and agrees, and each Holder of Securities issued
hereunder and under any Additional Provisions, by such Holder's acceptance
thereof likewise covenants and agrees, that all Securities shall be issued
subject to the provisions of this Article 18; and each Holder of a Security,
whether upon original issue or upon transfer or assignment thereof, accepts and
agrees to be bound by such provisions.

     The payment by the Guarantor pursuant to the Guarantee of the principal of,
any premium and interest (including any Additional Interest) on, any Additional
Amounts and, if applicable, any Additional Sums with respect to all Securities
of each series issued hereunder and under any Additional Provisions shall, to
the extent and in the manner hereinafter set forth,

                                      104
<PAGE>

be subordinate in right of payment to the prior payment in full of all Guarantor
Senior Indebtedness with respect to such series, whether outstanding at the date
of this Indenture or thereafter incurred.

     No provision of this Article 18 shall prevent the occurrence of any default
or Event of Default hereunder.

     Section 18.2.  Default on Guarantor Senior Indebtedness.

     In the event and during the continuation of any default by the Guarantor in
the payment of principal, premium, interest (including any Additional Interest)
or any other amount due on any Guarantor Senior Indebtedness with respect to the
Securities of any series, or in the event that the maturity of any Guarantor
Senior Indebtedness with respect to the Securities of any series has been
accelerated because of a default, then, in either case, no payment shall be made
by the Guarantor pursuant to the Guarantee with respect to the principal
(including redemption and sinking fund payments) of, any premium or interest
(including any Additional Interest) on, or any Additional Amounts or, if
applicable, Additional Sums with respect to, the Securities of such series.

     In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee when such payment is prohibited by the preceding
paragraph of this Section 18.2, such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the holders of such
Guarantor Senior Indebtedness or their respective representatives, or to the
trustee or trustees under any indenture pursuant to which any of such Guarantor
Senior Indebtedness may have been issued, as their respective interests may
appear, but only to the extent that the holders of such Guarantor Senior
Indebtedness (or their representative or representatives or a trustee) notify
the Trustee in writing within 90 days of such payment of the amounts then due
and owing on such Guarantor Senior Indebtedness and only the amounts specified
in such notice to the Trustee shall be paid to the holders of such Guarantor
Senior Indebtedness.

     Section 18.3.  Liquidation; Dissolution; Bankruptcy.

     Upon any payment by the Guarantor or distribution of assets of the
Guarantor of any kind or character, whether in cash, property or securities, to
creditors upon any dissolution, winding-up, liquidation or reorganization of the
Guarantor, whether voluntary or involuntary, or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due upon all Guarantor Senior
Indebtedness with respect to the Securities of any series shall first be paid in
full, or payment thereof provided for in money in accordance with its terms,
before any payment is made by the Guarantor pursuant to the Guarantee on account
of the principal of, premium or interest (including any Additional Interest) on,
or Additional Amounts or, if applicable, Additional Sums with respect to, the
Securities of such series; and upon any such dissolution, winding-up,
liquidation or reorganization, or in any such bankruptcy, insolvency,
receivership or other proceeding, any payment by the Guarantor, or distribution
of assets of the Guarantor of any kind or character, whether in cash, property
or securities, to which the Holders or the Trustee would

                                      105
<PAGE>

be entitled to receive from the Guarantor, except for the provisions of this
Article 18, shall be paid by the Guarantor or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders or by the Trustee under this Indenture if
received by them or it, directly to the holders of such Guarantor Senior
Indebtedness (pro rata to such holders on the basis of the respective amounts of
such Guarantor Senior Indebtedness held by such holders, as calculated by the
Guarantor) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing such
Guarantor Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay such Guarantor Senior
Indebtedness in full, in money or money's worth, after giving effect to any
concurrent payment or distribution to or for the holders of such Guarantor
Senior Indebtedness, before any payment or distribution is made pursuant to the
Guarantee to the Holders of the Securities of such series or to the Trustee.

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

     For purposes of this Article 18, the words "cash, property or securities"
shall not be deemed to include shares of stock of the Guarantor as reorganized
or readjusted, or securities of the Guarantor or any other corporation provided
for by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article 18 with respect to
the Guarantee in respect of any series of Securities to the payment of all
Guarantor Senior Indebtedness with respect to the Securities of such series that
may at the time be outstanding, provided that (i) such Guarantor Senior
Indebtedness is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (ii) the rights of the holders of such
Guarantor Senior Indebtedness are not, without the consent of such holders,
altered by such reorganization or readjustment.  The consolidation of the
Guarantor with, or the merger of the Guarantor into, another Person or the
liquidation or dissolution of the Guarantor following the conveyance, transfer
or lease of its property as an entirety, or substantially as an entirety, to
another Person upon the terms and conditions provided for in Sections 8.3 and
8.4 of this Indenture shall not be deemed a dissolution, winding-up, liquidation
or reorganization for the purposes of this Section 18.3 if such other Person
shall, as a part of such consolidation, merger, conveyance or transfer, comply
with the conditions stated in Sections 8.3 and 8.4 of this

                                      106
<PAGE>

Indenture. Nothing in Section 18.2 or in this Section 18.3 shall apply to claims
of, or payments to, the Trustee under or pursuant to Section 6.6 of this
Indenture.

     Section 18.4.  Subrogation.

     Subject to the payment in full of all Guarantor Senior Indebtedness with
respect to the Securities of any series, the rights of the Holders of the
Securities of such series shall be subrogated to the rights of the holders of
such Guarantor Senior Indebtedness to receive payments or distributions of cash,
property or securities of the Guarantor applicable to such Guarantor Senior
Indebtedness until the principal of, any premium and interest (including any
Additional Interest) on, and any Additional Amounts or, if applicable,
Additional Sums with respect to, the Securities of such series shall be paid in
full; and, for the purposes of such subrogation, no payments or distributions to
the holders of such Guarantor Senior Indebtedness of any cash, property or
securities to which the Holders or the Trustee would be entitled except for the
provisions of this Article 18, and no payment over pursuant to the provisions of
this Article 18 to or for the benefit of the holders of such Guarantor Senior
Indebtedness by Holders of the Securities of such series or the Trustee, shall,
as between the Guarantor, its creditors other than holders of such Guarantor
Senior Indebtedness, and the Holders of the Securities of such series, be deemed
to be a payment by the Guarantor to or on account of such Guarantor Senior
Indebtedness.  It is understood that the provisions of this Article 18 are and
are intended solely for the purposes of defining the relative rights of the
Holders of the Securities of each series, on the one hand, and the holders of
such Guarantor Senior Indebtedness with respect to the Securities of such series
on the other hand.

     Nothing contained in this Article 18 or elsewhere in this Indenture, any
Additional Provisions or in the Securities of any series is intended to or shall
impair, as between the Guarantor, its creditors other than the holders of
Guarantor Senior Indebtedness with respect to the Securities of such series, and
the Holders of the Securities of such series, the obligation of the Guarantor,
which is absolute and unconditional, to pay to the Holders of the Securities of
such series pursuant to the Guarantee the principal of, any premium and interest
(including any Additional Interest) on, and any Additional Amounts or, if
applicable, Additional Sums with respect to, the Securities of such series as
and when the same shall become due and payable in accordance with their terms,
or is intended to or shall affect the relative rights of the Holders of the
Securities of such series and creditors of the Guarantor, other than the holders
of such Guarantor Senior Indebtedness, nor shall anything herein or therein
prevent the Trustee or the Holder of any Security of such series from exercising
all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article 18 of the holders
of such Guarantor Senior Indebtedness in respect of cash, property or securities
of the Guarantor, as the case may be, received upon the exercise of any such
remedy.

     Upon any payment or distribution of assets of the Guarantor referred to in
this Article 18, the Trustee, subject to the provisions of Article 6 of this
Indenture, and the Holders shall be entitled to conclusively rely upon any order
or decree made by any court of competent jurisdiction in which such dissolution,
winding-up, liquidation or reorganization proceedings are

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<PAGE>

pending, or a certificate of the receiver, trustee in bankruptcy, liquidation
trustee, agent or other Person making such payment or distribution, delivered to
the Trustee or to the Holders of the Securities of any series, for the purposes
of ascertaining the Persons entitled to participate in such distribution, the
holders of Guarantor Senior Indebtedness with respect to the Securities of such
series and other indebtedness of the Guarantor, as the case may be, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article 18.

     Section 18.5.  Trustee to Effectuate Subordination.

     Each Holder of Securities by such Holder's acceptance thereof authorizes
and directs the Trustee on such Holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this
Article 18 and appoints the Trustee such Holder's attorney-in-fact for any and
all such purposes.

     Section 18.6.  Notice by the Guarantor.

     The Guarantor shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Guarantor that would prohibit the making of
any payment of monies to or by the Trustee in respect of the Securities of any
series pursuant to the provisions of this Article 18.  Notwithstanding the
provisions of this Article 18 or any other provision of this Indenture or any
Additional Provisions, the Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment of monies
to or by the Trustee in respect of the Securities of any series pursuant to the
provisions of this Article 18, unless and until a Responsible Officer of the
Trustee shall have received written notice thereof from the Guarantor or a
holder or holders of Guarantor Senior Indebtedness with respect to the
Securities of such series or from any trustee therefor; and before the receipt
of any such written notice, the Trustee, subject to the provisions of Article 6
of this Indenture, shall be entitled in all respects to assume that no such
facts exist; provided, however, that if the Trustee shall not have received the
notice provided for in this Section 18.6 at least two Business Days prior to the
date upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment pursuant to the Guarantee of the
principal of, any premium or interest (including any Additional Interest) on, or
any Additional Amounts or, if applicable, Additional Sums with respect to, any
Security of such series), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
money and to apply the same to the purposes for which they were received, and
shall not be affected by any notice to the contrary that may be received by it
within two Business Days prior to such date.

     The Trustee, subject to the provisions of Article 6 of this Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by a Person representing himself to be a holder of Guarantor Senior Indebtedness
with respect to the Securities of any series (or a trustee on behalf of such
holder), to establish that such notice has been given by a holder of such
Guarantor Senior Indebtedness or a trustee on behalf of any such holder or
holders.  In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of such
Guarantor Senior Indebtedness to participate in any payment or

                                      108
<PAGE>

distribution pursuant to this Article 18, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of such Guarantor Senior Indebtedness held by such Person, the extent to which
such Person is entitled to participate in such payment or distribution and any
other facts pertinent to the rights of such Person under this Article 18, and,
if such evidence is not furnished, the Trustee may defer any payment to such
Person pending judicial determination as to the right of such Person to receive
such payment.

     Upon any payment or distribution of assets of the Guarantor referred to in
this Article 18, the Trustee and the Holders shall be entitled to rely upon any
order or decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding-up or similar case or proceeding is pending, or a certificate of the
trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities of
any series, for the purpose of ascertaining the Persons entitled to participate
in such payment or distribution, the holders of Guarantor Senior Indebtedness
with respect to the Securities of such series and other indebtedness of the
Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 18.

     Section 18.7. Rights of the Trustee; Holders of Guarantor Senior
Indebtedness.

     The Trustee in its individual capacity shall be entitled to all the rights
set forth in this Article 18 in respect of any Guarantor Senior Indebtedness
with respect to the Securities of any series at any time held by it, to the same
extent as any other holder of such Guarantor Senior Indebtedness, and nothing in
this Indenture or any Additional Provisions shall deprive the Trustee of any of
its rights as such holder.

     With respect to the holders of Guarantor Senior Indebtedness with respect
to the Securities of any series, the Trustee undertakes to perform or to observe
only such of its covenants and obligations as are specifically set forth in this
Article 18, and no implied covenants or obligations with respect to the holders
of such Guarantor Senior Indebtedness shall be read into this Indenture or any
Additional Provisions against the Trustee.  The Trustee shall not be deemed to
owe any fiduciary duty to the holders of such Guarantor Senior Indebtedness and,
subject to the provisions of Article 6 of this Indenture, the Trustee shall not
be liable to any holder of such Guarantor Senior Indebtedness if it shall pay
over or deliver to Holders of the Securities of such series, the Guarantor or
any other Person money or assets to which any holder of such Guarantor Senior
Indebtedness shall be entitled by virtue of this Article 18 or otherwise.

     Nothing in this Article 18 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.6.

     Section 18.8.  Subordination May Not Be Impaired.

     No right of any present or future holder of any Guarantor Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any

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<PAGE>

act or failure to act on the part of the Guarantor, or by any act or failure to
act, in good faith, by any such holder, or by any noncompliance by the Guarantor
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof that any such holder may have or otherwise be charged with.

     Without in any way limiting the generality of the foregoing paragraph, the
holders of Guarantor Senior Indebtedness with respect to the Securities of any
series may, at any time and from time to time, without the consent of or notice
to the Trustee or the Holders of Securities of such series, without incurring
responsibility to such Holders and without impairing or releasing the
subordination provided in this Article 18 or the obligations hereunder of the
Holders of the Securities of such series to the holders of such Guarantor Senior
Indebtedness, do any one or more of the following:  (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, such
Guarantor Senior Indebtedness, or otherwise amend or supplement in any manner
such Guarantor Senior Indebtedness or any instrument evidencing the same or any
agreement under which such Guarantor Senior Indebtedness is outstanding; (ii)
sell, exchange, release or otherwise deal with any property pledged, mortgaged
or otherwise securing such Guarantor Senior Indebtedness; (iii) release any
Person liable in any manner for the collection of such Guarantor Senior
Indebtedness; and (iv) exercise or refrain from exercising any rights against
the Guarantor and any other Person.

                       *               *               *

                                      110
<PAGE>

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

[SEAL]                        ACE INA HOLDINGS INC.

Attest:

                              By ______________________________________
                              Name:
                              Title:

[SEAL]                        ACE LIMITED,
                                    as Guarantor

Attest:

                              By ______________________________________
                              Name:
                              Title:

[SEAL]                        BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,
                                    as Trustee

Attest:

                              By ______________________________________
                              Name:
                              Title:

                                      111

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