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                                                                   Exhibit 10.1

                           HIGHWOODS PROPERTIES, INC.
                   AMENDED AND RESTATED 1994 STOCK OPTION PLAN

SECTION 1. GENERAL PURPOSE OF THE PLAN: DEFINITIONS

     The name of the plan is the Highwoods Properties, Inc. Amended and Restated
1994 Stock Option Plan (the "Plan"). The purpose of the Plan is to encourage and
enable the officers, employees and directors of Highwoods Properties, Inc. (the
"Company") and its Subsidiaries upon whose judgment, initiative and efforts the
Company largely depends for the successful conduct of its business to acquire a
proprietary interest in the Company. It is anticipated that providing such
persons with a direct stake in the Company's welfare will assure a closer
identification of their interests with those of the Company, thereby stimulating
their efforts on the Company's behalf and strengthening their desire to remain
with the Company.

     The following terms shall be defined as set forth below:

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

     "Award" or "Awards", except where referring to a particular category of
grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Phantom Stock and Restricted Stock Awards.

     "Board" means the Board of Directors of the Company.

     "Cause" means and shall be limited to a vote of the Board resolving that
the participant should be dismissed as a result of (i) any material breach by
the participant of any agreement to which the participant and the Company are
parties, (ii) any act (other than retirement) or omission to act by the
participant which may have a material and adverse effect on the business of the
Company or any Subsidiary or on the participant's ability to perform services
for the Company or any Subsidiary, including, without limitation, the commission
of any crime (other than ordinary traffic violations), or (iii) any material
misconduct or neglect of duties by the participant in connection with the
business or affairs of the Company or any Subsidiary.

     "Change Of Control" is defined in Section 13.

     "Code" means the Internal Revenue Code of 1986, as amended, and any
successor Code, and related rules, regulations and interpretations.

     "Committee" means the Board or any Committee of the Board referred to in
Section 2.

     "Disability" means disability as set forth in Section 22(e)(3) of the Code.

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     "Effective Date" means the date on which the Plan is approved by the
stockholders as set forth in Section 15.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and the related rules, regulations and interpretations.

     "Fair Market Value" on any given date means the last reported sale price at
which the Shares are traded on such date or, if no Shares are traded on such
date, the most recent date on which the Shares were traded, as reflected on the
New York Stock Exchange or, if applicable, any other national stock exchange on
which the Shares are traded.

     "Incentive Stock Option" means any Stock Option designated and qualified as
an "incentive stock option" as defined in Section 422 of the Code.

     "Independent Director" means a member of the Board who is not also an
employee of the Company or any Subsidiary. A director emeritus shall not be
considered as an active Board member for purposes of this definition.

     "Meeting Fees" means the fees paid by the Company to each Independent
Director as compensation for attending meetings of the Board or any committee of
the Board.

     "Non-Employee Director" means a director who qualifies as such under Rule
16b-3(b)(3) promulgated under the Act or any successor definition under the Act.

     "Non-Qualified Stock Option" means any Stock Option that is not an
Incentive Stock Option.

     "Option" or "Stock Option" means any option to purchase Shares granted
pursuant to Section 5.

     "Phantom Stock" means Awards granted pursuant to Section 8.

     "Restricted Stock Award" means Awards granted pursuant to Section 5(c) or
Section 7.

     "Restricted Shares" means Shares subject to restrictions as provided in
Section 7 and the subject of a Restricted Stock Award.

     "Retainer Fee" means any annual fees paid by the Company to each
Independent Director, including fees paid for service on a committee of the
Board.

     "Share" means one or more, respectively, of the Company's shares of common
stock, par value $.01 per share, subject to adjustments pursuant to Section 3.

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     "Stock Appreciation Rights" ("SARS") means Awards granted pursuant to
Section 6.

     "Subsidiary" means Highwoods Services, Inc. and any corporation or other
entity (other than the Company) in any unbroken chain of corporations or other
entities, beginning with the Company, if each of the corporations or entities
(other than the last corporation or entity in the unbroken chain) owns stock or
other interests possessing 50% or more of the economic interest or the total
combined voting power of all classes of stock or other interests in one of the
other corporations or entities in the chain.

SECTION 2. ADMINISTRATION OF PLAN: COMMITTEE AUTHORITY TO SELECT PARTICIPANTS
           AND DETERMINE AWARDS

     (a)  Committee. Except as set forth in Section 2(c), the Plan shall be
administered by the executive compensation committee of the Board, or any other
committee of not less than two Non-Employee Directors performing similar
functions, as appointed by the Board from time to time. Only Non-Employee
Directors may vote with respect to transactions involving an award or other
acquisition from the Company.

     (b)  Powers of Committee. The Committee shall have the power and authority
to grant Awards consistent with the terms of the Plan, including the power and
authority:

          (i)    to select participants to whom Awards may be granted from time
to time;

          (ii)   to determine the time or times of grant, and the extent, if
any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation
Rights, Phantom Stock, and Restricted Stock Awards, or any combination of the
foregoing, granted to any one or more participants;

          (iii)  to determine the number of Shares to be covered by any Award;

          (iv)   to determine and modify the terms and conditions, including
restrictions, not inconsistent with the terms of the Plan, of any Award, which
terms and conditions may differ among individual Awards and participants, and to
approve the form of written instruments evidencing the Awards;

          (v)    to accelerate the exercisability or vesting of all or any
portion of any Award;

          (vi)   subject to the provisions of Section 5(a)(iii), to extend the
period in which Stock Options may be exercised;

          (vii)  to determine whether, to what extent, and under what
circumstances Shares and other amounts payable with respect to an Award shall be
deferred either automatically

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or at the election of the participant and whether and to what extent the Company
shall pay or credit amounts constituting interest (at rates determined by the
Committee) or dividends or deemed dividends on such deferrals; and

          (viii) to adopt, alter and repeal such rules, guidelines and practices
for administration of the Plan and for its own acts and proceedings as it shall
deem advisable; to interpret the terms and provisions of the Plan and any Awards
(including related written instruments); to make all determinations it deems
advisable for the administration of the Plan; to decide all disputes arising in
connection with the Plan; and to otherwise supervise the administration of the
Plan.

All decisions and interpretations of the Committee shall be binding on all
persons, including the Company and Plan participants.

SECTION 3. SHARES AVAILABLE UNDER THE PLAN; MERGERS; SUBSTITUTIONS

     (a)  Shares Issuable. The maximum number of Shares reserved and available
for issuance under the Plan shall be 6,000,000 Shares of which not more than
600,000 Shares may be Restricted Shares granted as provided in Section 5(c) or
Section 7 hereof. For purposes of this limitation, the Shares underlying any
Awards which are forfeited, canceled, reacquired by the Company, satisfied
without the issuance of Shares or otherwise terminated (other than by exercise)
shall be added back to the Shares available for issuance under the Plan so long
as the participants to whom such Awards had been previously granted received no
benefits of ownership of the underlying Shares to which the Award related.
Subject to such overall limitation, Shares may be issued up to such maximum
number pursuant to any type or types of Award, including Incentive Stock
Options. Shares issued under the Plan may be authorized but unissued Shares or
Shares reacquired by the Company.

     (b)  Stock Dividends, Mergers, Etc. In the event of a stock dividend, stock
split or similar change in capitalization affecting the Shares, the Committee
shall make appropriate adjustments in (i) the number and kind of stock or
securities on which Awards may thereafter be granted, (ii) the number and kind
of stock or securities remaining subject to outstanding Awards, and (iii) the
option or purchase price in respect of such stock or securities. In the event of
any merger, consolidation, dissolution or liquidation of the Company, the
Committee in its sole discretion may, as to any outstanding Awards, make such
substitution or adjustment in the aggregate number of Shares reserved for
issuance under the Plan and the number and purchase price (if any) of Shares
subject to such Awards as it may determine and as may be permitted by the terms
of such transaction, or amend or terminate such Awards upon such terms and
conditions as it shall provide (which, in the case of the termination of the
vested portion of any Award, shall require payment or other consideration which
the Committee deems equitable in the circumstances).

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     (c)  Substitute Awards. The Committee may grant Awards under the Plan in
substitution for stock and stock-based awards held by employees of another
corporation who concurrently become employees of the Company or a Subsidiary as
the result of a merger or consolidation of the employing corporation with the
Company or a Subsidiary or the acquisition by the Company or a Subsidiary of
property or stock of the employing corporation. The Committee may direct that
the substitute awards be granted on such terms and conditions as the Committee
considers appropriate in the circumstances.

SECTION 4. ELIGIBILITY

     Participants in the Plan will be such directors, full or part-time officers
and other employees of the Company and its Subsidiaries who are responsible for
or contribute to the management, growth, or profitability of the Company and its
Subsidiaries and who are selected from time to time by the Committee, in its
sole discretion.

SECTION 5. STOCK OPTIONS

     Any Stock Option granted under the Plan shall be in such form as the
Committee may from time to time approve.

     Stock Options granted under the Plan may be either Incentive Stock Options
or Non-Qualified Stock Options. To the extent that any Option does not qualify
as an Incentive Stock Option, it shall constitute a Non-Qualified Stock Option.

     No Incentive Stock Option shall be granted under the Plan after June 16,
2004.

     (a)  Stock Options Granted to Employees. The Committee in its discretion
may grant Stock Options to employees of the Company or any Subsidiary. Stock
Options granted to employees pursuant to this Section 5(a) shall be subject to
the following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Committee shall
deem desirable:

          (i) Exercise Price. The exercise price per share for the Shares
covered by a Stock Option granted pursuant to this Section 5(a) shall be
determined by the Committee at the time of grant but shall not be less than 100%
of Fair Market Value on the date of grant. Notwithstanding the foregoing, with
respect to Non-Qualified Stock Options which are granted in lieu of cash bonus,
the exercise price per share shall not be less than 50% of the Fair Market Value
on the date of grant. If an employee owns or is deemed to own (by reason of the
attribution rules applicable under Section 424(d) of the Code) more than 10% of
the combined voting power of all classes of stock of the Company or any
Subsidiary or parent corporation and an Incentive Stock Option is granted to
such employee, the option price of such Incentive Stock Option shall not be less
than 110% of Fair Market Value on the grant date.

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          (ii)  Option Term. The term of each Stock Option shall be fixed by the
Committee, but no Incentive Stock Option shall be exercisable more than ten
years after the date the Option is granted. If an employee owns or is deemed to
own (by reason of the attribution rules of Section 424(d) of the Code) more than
10% of the combined voting power of all classes of stock of the Company or any
Subsidiary or parent corporation and an Incentive Stock Option is granted to
such employee, the term of such option shall be no more than five years from the
date of grant.

          (iii) Exercisability; Rights of a Stockholder. Stock Options shall
become vested and exercisable at such time or times, whether or not in
installments, as shall be determined by the Committee at or after the grant
date. The Committee may at any time accelerate the exercisability of all or any
portion of any Stock Option. An optionee shall have the rights of a stockholder
only as to Shares acquired upon the exercise of a Stock Option and not as to
unexercised Stock Options.

          (iv)  Method of Exercise. Stock Options may be exercised in whole or
in part, by giving written notice of exercise to the Company, specifying the
number of Shares to be purchased. Payment of the purchase price may be made by
one or more of the following methods or by such other method as the Committee
may allow:

                (A) In cash, by certified or bank check or other instrument
acceptable to the Committee;

                (B) In the form of Shares that are not then subject to
restrictions under any Company plan and that have been held by the optionee for
at least six months, if permitted by the Committee in its discretion. Such
surrendered Shares shall be valued at Fair Market Value on the exercise date; or

                (C) By the optionee delivering to the Company a properly
executed exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Company cash or a check payable and acceptable to the
Company to pay the purchase price; provided that in the event the optionee
chooses to pay the purchase price as so provided, the optionee and the broker
shall comply with such procedures and enter into such agreements of indemnity
and other agreements as the Committee shall prescribe as a condition of such
payment procedure. Payment instruments will be received subject to collection.

The delivery of certificates representing the Shares to be purchased pursuant to
the exercise of a Stock Option will be contingent upon receipt from the optionee
(or a purchaser acting in his stead in accordance with the provisions of the
Stock Option) by the Company of the full purchase price for such Shares and the
fulfillment of any other requirements contained in the Stock Option or
applicable provisions or laws.

          (v)   Non-Transferability of Options. No Stock Option shall be
transferable by

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the optionee otherwise than by will or by the laws of descent and distribution
and all Stock Options shall be exercisable, during the optionee's lifetime, only
by the optionee.

          (vi)   Termination By Reason of Death. If any optionee's employment by
the Company and its Subsidiaries terminates by reason of death, the Stock Option
may thereafter be exercised, to the extent exercisable at the date of death, by
the legal representative or legatee of the optionee, for a period of six months
(or such longer periods as the Committee shall specify at any time) from the
date of death, or until the expiration of the stated term of the Option, if
earlier.

          (vii)  Termination By Reason of Disability.

                 (A) Any Stock Option held by an optionee whose employment by
the Company and its Subsidiaries has terminated by reason of Disability may
thereafter be exercised, to the extent it was exercisable at the time of such
termination, for a period of six months (or such longer period as the Committee
shall specify at any time) from the date of such termination of employment, or
until the expiration of the stated term of the Option, if earlier.

                 (B) The Committee shall have sole authority and discretion to
determine whether a participant's employment has been terminated by reason of
Disability.

                 (C) Except as otherwise provided by the Committee at the time
of grant the death of an optionee during a period provided in this Section
5(a)(vii) for the exercise of a Non-Qualified Stock Option, shall extend such
period of six months from the date of death, subject to termination on the
expiration of the stated term of the Option, if earlier.

          (viii) Termination for Cause. If any optionee's employment by the
Company and its Subsidiaries has been terminated for Cause, any Stock Option
held by such optionee shall immediately terminate and be of no further force and
effect; provided, however, that the Committee may, in its sole discretion,
provide that such Stock Option can be exercised for a period of up to 30 days
from the date of termination of employment or until the expiration of the stated
term of the Option, if earlier.

          (ix)   Other Termination. Unless otherwise determined by the
Committee, if an optionee's employment by the Company and its Subsidiaries
terminate for any reason other than death, Disability, or for Cause, any Stock
Option held by such optionee may thereafter be exercised, to the extent it was
exercisable on the date of termination of employment for three months (or such
longer period as the Committee shall specify at any time) from the date of
termination of employment or until the expiration of the stated term of the
Option, if earlier.

          (x)    Annual Limit On Incentive Stock Options. To the extent required
for "incentive stock option" treatment under Section 422 of the Code, the
aggregate Fair Market Value (determined as of the time of grant) of the Shares
with respect to which Incentive Stock Options granted under this Plan and any
other plan of the Company or its Subsidiaries become

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exercisable for the first time by an optionee during any calendar year shall not
exceed $100,000.

          (xi)  Form of Settlement. Shares issued upon exercise of a Stock
Option shall be free of all restrictions under the Plan, except as otherwise
provided in this Plan.

     (b)  Reload Options. At the discretion of the Committee, Options granted
under Section 5(a) may include a so-called "reload" feature pursuant to which an
optionee exercising an option by the delivery of a number of Shares in
accordance with Section 5(a)(iv)(B) hereof would automatically be granted
additional Options (with an exercise price equal to the Fair Market Value of the
Stock on the date the additional Option is granted and with the same expiration
date as the original Option being exercised, and with such other terms as the
Committee may provide) to purchase that number of Shares equal to the number
delivered to exercise the original Option.

     (c)  Restricted Shares and Stock Options Granted to Independent Directors.

          (i)   Automatic Grant of Options. Each Independent Director shall
automatically be granted a Non-Qualified Stock Option to purchase 10,000 Shares
upon assuming his or her position on the Board. The exercise price per Share for
the Shares covered by a Stock Option granted pursuant to this Section 5(c)(i)
shall be equal to, (x) as to each Independent Director serving on the Board on
the date of the initial public offering, the initial public offering price and,
(y) as to each Independent Director elected to serve on the Board subsequent to
the initial public offering, the Fair Market Value of a single Share on the date
the Stock Option is granted.

          (ii)  Discretionary Grant of Restricted Shares or Options. Commencing
January 1, 1996, the Committee in its discretion may grant Restricted Shares
(subject to the provisions of Section 7 hereof) or Non-Qualified Stock Options
in addition to those Non-Qualified Stock Options automatically awarded pursuant
to Section 5(c)(i). The exercise price per Share for the Shares covered by a
Stock Option granted pursuant to this Section 5(c)(ii) shall not be less than
the Fair Market Value of a single Share on the date the Stock Option is granted.

          (iii) Grant of Options or Restricted Shares in Lieu of Cash For
Retainer Fee and Meeting Fees.

                (A) Each Independent Director may elect to defer 0%, 50% or 100%
of his Retainer Fee and/or Meeting Fees for each calendar year (commencing
calendar year 1997) for the application of that amount towards either the grant
of Stock Options or Restricted Shares as set forth in Section 5(c)(iii)(B). On
or before December 31 of the year preceding the calendar year for which the fees
apply, each Independent Director shall make an irrevocable election in writing
on a Notice of Election attached hereto as "Exhibit A", or such other form as
may be approved by the Committee, to receive Stock Options or Restricted Shares
in lieu of all or a designated percentage of his Retainer Fee and/or Meeting
Fees.

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               (B)  The number of Stock Options issuable in accordance with this
Section 5(c)(iii) with respect to the elected portion of an Independent
Director's Retainer Fee and the elected portion of an Independent Director's
Meeting Fees will be equal to the amount of the deferred fees divided by 25% of
the Fair Market Value of a Share on the date of the grant. The number of shares
of Restricted Shares issuable in accordance with this Section 5(c)(iii) with
respect to the elected portion of an Independent Director's Retainer Fee and the
elected portion of an Independent Director's Meeting Fees will be equal to the
amount of the deferred fees divided by 250% of the Fair Market Value of a Share
on the date of the grant.

               (C)  Fractional Options or Shares shall not be granted under this
Section 5(c)(iii) and any remaining amount of elected Retainer Fees and Meeting
Fees will be paid to each Independent Director in cash, on the date or dates
Option or Restricted Stock Award grants are made in accordance with this Section
5(c)(iii).

               (D)  The price at which a Share may be purchased under an Option
granted pursuant to this Section 5(c) (iii) shall be equal to 75% of the Fair
Market Value of a Share on the date of the grant.

          (iv) Exercise; Termination; Non-Transferability; Vesting.

               (A)  Except as provided in Section 13, no Option granted under
Section 5(c)(i) may be exercised before the first anniversary of the date upon
which it was granted. The Shares subject to such Options granted under Section
5(c)(i) shall become exercisable in 25% increments on each anniversary of the
date of grant beginning with the first such anniversary such that 100% of the
Shares subject to an Option shall be exercisable on or after the fourth
anniversary of the date of grant; provided, however, that the Independent
Director who has received a grant under Section 5(c)(i) must be a member of the
Board on any such anniversary date. The term and exercisability of each Option
granted under Section 5(c)(ii) shall be fixed by the Committee. Options granted
pursuant to Section 5(c)(iii) become exercisable six months from the date of
grant; provided, however, that the Independent Director who has received a grant
under Section 5(c)(iii) must be a member of the Board on such date. No Option
issued under Section 5(c) shall be exercisable after the expiration of 10 years
from the date such Option is granted.

               (B)  The rights of an Independent Director in an Option granted
under Section 5(c)(i) and 5(c)(ii) shall terminate six months after such
director ceases to be a director of the Company or the specified expiration
date, if earlier; provided, however, that if the Independent Director ceases to
be a director for Cause, the rights shall terminate immediately on the date on
which he ceases to be a director. The rights of an Independent Director in an
Option granted under Section 5(c)(iii) shall terminate three years after such
director ceases to be a director of the Company or the specified expiration
date, if earlier; provided, however, that if and when an Independent Director
becomes inactive or becomes a director emeritus, Options previously granted
pursuant to Section 5(c)(iii) shall remain exercisable the same as if the

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inactive director or director emeritus was at all times an active Independent
Director.

               (C)  No Stock Option granted under this Section 5(c) shall be
transferable by the optionee otherwise than by Will or by the laws of descent
and distribution, and such Options shall be exercisable, during the optionee's
lifetime only by the optionee. Any Option granted to an Independent Director
pursuant to Section 5(c)(i) and 5(c)(ii) and outstanding on the date of his
death may be exercised by the legal representative or legatee of the optionee
for a period of six months from the date of death or until the expiration of the
stated term of the Option, if earlier. Any Option granted to an Independent
Director pursuant to Section 5(c)(iii) and outstanding on the date of his death
may be exercised by the legal representative or legatee of the optionee for a
period of three years from the date of death or until the expiration of the
stated term of the Option, if earlier.

               (D)  Options granted under this Section 5(c) may be exercised
only by written notice to the Company specifying the number of Shares to be
purchased. Payment of the full purchase price of the Shares to be purchased may
be made by one or more of the methods specified in Section 5(a)(iv). An optionee
shall have the rights of a stockholder only as to Shares acquired upon the
exercise of a Stock Option and not as to unexercised Stock Options.

               (E)  Subject to the immediately following sentence, no Restricted
Shares granted under Section 5(c)(iii) may be sold, assigned, transferred,
pledged or otherwise encumbered or disposed of and in the event that the
Independent Director is no longer a director (whether an Independent Director or
not) of the Company for any reason (including death, retirement, Disability or
for Cause), the Company shall have the right, at the discretion of the
Committee, to require forfeiture to the Company of such Restricted Shares from
the participant or the participant's legal representative, which right of
forfeiture must be exercised not later than the 90th day following the date such
person ceased to be a director. Notwithstanding the immediately foregoing
sentence, the Restricted Shares granted under Section 5(c)(iii) shall vest, and
shall no longer be subject to the Company's forfeiture right or the
non-transferability restrictions in this Section 5(c)(iv)(E), six months after
the date of grant, provided that the participant must be a member of the Board
on such vesting date in order for vesting to occur. A recipient of Restricted
Shares granted under Section 5(c)(iii) shall have all of the rights of a
stockholder with respect to the Restricted Shares including voting and dividend
rights, subject to the non-transferability restrictions and Company forfeiture
rights described above in this Section 5(c)(iv)(E). Unless the Committee shall
otherwise determine, certificates evidencing Restricted Shares issued pursuant
to Section 5(c)(iii) shall remain in the possession of the Company until such
Shares are vested as provided above. The vesting and other terms of Restricted
Shares issued pursuant to Section 5(c)(ii) shall be fixed by the Committee and
subject to and in accordance with Section 7.

          (v)  Limited to Independent Directors. The provisions of this Section
5(c) shall apply only to Options and Restricted Shares granted or to be granted
to Independent Directors, and shall not be deemed to modify, limit or otherwise
apply to any other provision of this Plan or

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to any Option or Restricted Shares issued under this Plan to a participant who
is not an Independent Director of the Company. To the extent inconsistent with
the provisions of any other Section of this Plan, the provisions of this Section
5(c) shall govern the rights and obligations of the Company and Independent
Directors respecting Options and Restricted Shares granted or to be granted to
Independent Directors. The provisions of this Section 5(c) which affect the
price, date of exercisability, vesting, option period or amount of Shares under
an Option or with respect to Restricted Shares shall not be amended more than
once in any six-month period, other than to comport with changes in the Code or
ERISA.

SECTION 6. STOCK APPRECIATION RIGHTS

     The Committee may from time to time grant SARs unrelated to Options or
related to Options or portions of Options granted to participants under the
Plan. Each SAR shall be evidenced by a written instrument and shall be subject
to such terms and conditions as the Committee may determine. Subject to such
terms and conditions established by the Committee the participant may exercise
an SAR or portion thereof, and thereupon shall be entitled to receive payment of
an amount equal to the aggregate appreciation in value of the Shares as to which
the SAR is awarded, as measured by the difference between the purchase price of
such Shares and their Fair Market Value at the date of exercise. Such payments
may be made in cash, in Shares valued at Fair Market Value as of the date of
exercise, or in any combination thereof, as the Committee in its discretion
shall determine.

SECTION 7. RESTRICTED STOCK AWARDS

     (a)  Nature of Restricted Stock Award. The Committee may grant Restricted
Stock Awards to any participant under the Plan. A Restricted Stock Award is an
Award entitling the recipient to acquire, at no cost or for a purchase price
determined by the Committee, Shares subject to such restrictions and conditions
as the Committee may determine at the time of grant. Conditions may be based on
continuing employment and/or achievement of pre-established performance goals
and objectives.

     (b)  Acceptance of Award. A participant who is granted a Restricted Stock
Award shall have no rights with respect to such Award unless the participant
shall have accepted the Award within 60 days (or such shorter date as the
Committee may specify) following the award date by making payment to the
Company, if required, by certified or bank check or other instrument or form of
payment acceptable to the Committee in an amount equal to the specified purchase
price, if any, of the Shares covered by the Award and by executing and
delivering to the Company a written instrument that sets forth the terms and
conditions of the Restricted Shares in such form as the Committee shall
determine.

     (c)  Rights as a Stockholder. Upon complying with Section 7(b) above, a
participant shall have all the rights of a stockholder with respect to the
Restricted Shares including voting and dividend rights, subject to
non-transferability restrictions and Company repurchase or

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forfeiture rights described in this Section 7 and subject to such conditions
contained in the written instrument evidencing the Restricted Stock Award.
Unless the Committee shall otherwise determine, certificates evidencing the
Restricted Shares shall remain in the possession of the Company until such
Shares are vested as provided in Section 7(e) below.

     (d)  Restrictions. Restricted Shares may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein. In the event of termination of employment by the
Company and its Subsidiaries, or in the case of Independent Directors, an
Independent Director ceases to be a director, for any reason (including death,
retirement, Disability, or for Cause), the Company shall have the right, at the
discretion of the Committee, to repurchase at their original purchase price as
established at Section 7(a) above Restricted Shares with respect to which
conditions have not lapsed, or to require forfeiture of such Shares to the
Company if acquired at no cost, from the participant or the participant's legal
representative. The Company must exercise such right of repurchase or forfeiture
not later than the 90th day following such termination of employment (unless
otherwise specified in the written instrument evidencing the Restricted Stock
Award).

     (e)  Vesting of Restricted Shares. The Committee at the time of grant shall
specify the date or dates and/or the attainment of pre-established performance
goals, objectives and other conditions on which the non-transferability of the
Restricted Shares and the Company's right of repurchase or forfeiture shall
lapse. Subsequent to such date or dates and/or the attainment of such
pre-established performance goals, objectives and other conditions, the Shares
on which all restrictions have lapsed shall no longer be Restricted Shares and
shall be deemed "vested."

     (f)  Waiver, Deferral and Reinvestment of Dividends. The written instrument
evidencing the Restricted Stock Award may require or permit the immediate
payment, waiver, deferral or investment of dividends paid on the Restricted
Shares.

SECTION 8. PHANTOM STOCK

     The Committee may from time to time grant Phantom Stock Awards to any
participant under the Plan. Each Phantom Stock Award shall be evidenced by a
written instrument and shall be subject to such terms and conditions as the
Committee may determine. Subject to such terms and conditions as may be
established by the Committee, the participant may exercise a Phantom Stock Award
or portion thereof, and thereupon shall be entitled to receive payment of an
amount equal to the Fair Market Value at the date of exercise of the Shares as
to which the Phantom Stock is awarded. Such payments may be made in cash, in
Shares valued at Fair Market Value as of the date of exercise, or in any
combination thereof, as the Committee in its discretion shall determine.

SECTION 9. TAX WITHHOLDING

     (a)  Payment by Participant. Each participant shall, no later than the date
as of which

                                       12

<PAGE>

the value of an Award of any Shares or other amounts received thereunder first
becomes includable in the gross income of the participant for federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the Committee
regarding payment of any federal, state, or local taxes of any kind required by
law to be withheld with respect to such income. The Company and its Subsidiaries
shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment of any kind otherwise due to the participant.

     (b)  Payment in Shares. A participant may elect to have such tax
withholding obligation satisfied, in whole or in part, by (i) authorizing the
Company to withhold from the Shares to be issued pursuant to any Award a number
of Shares with an aggregate Fair Market Value (as of the date the withholding is
effected) that would satisfy the withholding amount due, or (ii) transferring to
the Company Shares owned by the participant with an aggregate Fair Market Value
(as of the date the withholding is effected) that would satisfy the withholding
amount due. With respect to any participant who is subject to Section 17 of the
Act, the following additional restrictions shall apply:

               (A)  the election to satisfy tax withholding obligations relating
to an Award in the manner permitted by this Section 9(b) shall be made either
(1) during the period beginning on the third business day following the date of
release of quarterly or annual summary statements of revenues of the Company and
ending on the twelfth business day following such date, or (2) at least six
months prior to the date as of which the receipt of such Award first becomes a
taxable event for federal income tax purposes;

               (B)  such election shall be irrevocable;

               (C)  such election shall be subject to the consent or disapproval
of the Committee; and

               (D)  the Shares withheld to satisfy tax withholding must pertain
to an Award which has been outstanding for at least six months.

SECTION 10. TRANSFER, LEAVE OF ABSENCE, ETC.

     For purposes of the Plan, the following events shall not be deemed a
termination of employment:

     (a)  a transfer to the employment of the Company from a Subsidiary or from
the Company to a Subsidiary, or from one Subsidiary to another; or

     (b)  an approved leave of absence for military service or sickness, or for
any other purposes approved by the Company, if the employee's right to
re-employment is guaranteed either by a statute or by contract or under the
policy pursuant to which the leave of absence was granted or if the Committee
otherwise so provides in writing.

                                       13

<PAGE>

SECTION 11. AMENDMENTS AND TERMINATION

     The Board may, at any time, amend or discontinue the Plan and the Committee
may, at any time, amend or cancel any outstanding Award (or provide substitute
Awards at the same or reduced exercise or purchase price or with no exercise or
purchase price, but such price, if any, must satisfy the requirements which
would apply to the substitute or amended Award as if it were then initially
granted under this Plan) for the purpose of satisfying changes in law without
the holder's consent. To the extent required by the Code to ensure that Options
granted hereunder qualify as Incentive Stock Options and to the extent required
by the Act to ensure that Awards and Options granted under the Plan are exempt
under Rule 16b-3 promulgated under the Act, Plan amendments shall be subject to
approval by the Company's stockholders. Notwithstanding anything herein to the
contrary, neither the Board nor the Committee may reduce the exercise or
purchase price of any outstanding Award without stockholder approval.

SECTION 12. STATUS OF PLAN

     With respect to the portion of any Award which has not been exercised and
any payments in cash, Shares or other consideration not received by a
participant, a participant shall have no rights greater than those of a general
creditor of the Company unless the Committee shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Committee
may authorize the creation of trusts or other arrangements to meet the Company's
obligations to deliver Shares or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent
with the provisions of the foregoing sentence.

SECTION 13. CHANGE OF CONTROL PROVISIONS

     Upon the occurrence of a Change of Control as defined in this Section 13:

     (a)  Each outstanding Stock Option shall automatically become fully
exercisable notwithstanding any provision to the contrary herein.

     (b)  Restrictions and conditions on Restricted Stock Awards shall
automatically be deemed waived, and the recipients of such Awards shall become
entitled to receipt of the Shares subject to such Awards unless the Committee
shall otherwise expressly provide at the time of grant.

     (c)  "Change of Control" shall mean the occurrence of any one of the
following events:

          (i)  any "person," as such term is used in Section 13(d) and 14(d) of
the Act (other than the Company, any of its Subsidiaries, any trustee, fiduciary
or other person or entity

                                       14

<PAGE>

holding securities under any employee benefit plan of the Company or any of its
Subsidiaries), together with all "affiliates" and "associates" (as such terms
are defined in Rule 12b-2 under the Act) of such person, shall become the
"beneficial owner" (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing 40% or more of
either (A) the combined voting power of the Company's then outstanding
securities having the right to vote in an election of the Company's Board of
Directors ("Voting Securities") or (B) the then outstanding Shares of the
Company (in either such case other than as a result of acquisition of securities
directly from the Company); or

          (ii)  persons who, as of May 1, 1994, constitute the Company's Board
of Directors (the "Incumbent Directors") cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or
similar transaction, to constitute at least a majority of the Board, provided
that any person becoming a director of the Company subsequent to May 1, 1994
whose election or nomination for election was approved by a vote of at least a
majority of the Incumbent Directors shall, for purposes of this Plan, be
considered an Incumbent Director; or

          (iii) the stockholders of the Company shall approve (A) any
consolidation or merger of the Company or any Subsidiary where the stockholders
of the Company, immediately prior to the consolidation or merger, would not,
immediately after the consolidation or merger, beneficially own (as such term is
defined in Rule 13D-3 under the Act), directly or indirectly, shares
representing in the aggregate 50% of the voting shares of the corporation
issuing cash securities in the consolidation or merger (or of its ultimate
parent corporation, if any), (B) any sale, lease, exchange or other transfer (in
one transaction or a series of transactions contemplated or arranged by an party
as a single plan) of all or substantially all of the assets of the Company or
(C) any plan or proposal for the liquidation or dissolution of the Company.

Notwithstanding the foregoing, a "Change of Control" shall not be deemed to have
occurred for purposes of the foregoing clause (i) solely as the result of an
acquisition of securities by the Company which, by reducing the number of Shares
or other Voting Securities outstanding, increases (x) the proportionate number
of Shares beneficially owned by any person to 40% or more of the Shares then
outstanding or (y) the proportionate voting power represented by the Voting
Securities beneficially owned by any person to 40% or more of the combined
voting power of all then outstanding Voting Securities; provided, however, that
if any person referred to in clause (x) or (y) of this sentence shall thereafter
become the beneficial owner of any additional Shares or other Voting Securities
(other than pursuant to a stock split, stock dividend, or similar transaction),
then a "Change of Control" shall be deemed to have occurred for purposes of the
foregoing clause (i).

                                       15

<PAGE>

SECTION 14. GENERAL PROVISIONS

     (a)  No Distribution: Compliance With Legal Requirements. The Committee may
require each person acquiring Shares pursuant to an Award to represent to and
agree with the Company in writing that such person is acquiring the Shares
without a view to distribution thereof.

     No Shares shall be issued pursuant to an Award until all applicable
securities laws and other legal and stock exchange requirements have been
satisfied. The Committee may require the placing of such stop-orders and
restrictive legends on certificates for Shares and Awards as it deems
appropriate.

     (b)  Delivery of Stock Certificates. Delivery of stock certificates to
participants under this Plan shall be deemed effected for all purposes when the
Company or a stock transfer agent of the Company shall have delivered such
certificates in the United States mail, addressed to the participant, at the
participant's last known address on file with the Company.

     (c)  Other Compensation Arrangements: No Employment Rights. Nothing
contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, subject to stockholder approval if
such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases. The adoption of the Plan and
the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

SECTION 15. EFFECTIVE DATE OF PLAN

     This Plan shall become effective upon approval by the holders of a majority
of the Shares of the Company present or represented and entitled to vote at a
meeting of stockholders.

SECTION 16. GOVERNING LAW

     This Plan shall be governed by North Carolina law except to the extent such
law is preempted by federal law.

                                       16<PAGE>
                                                                     EXHIBIT 4.1

                                    INDENTURE

                                 BY AND BETWEEN

                       Mountainbank Financial Corporation

                                       AND

                     Wells Fargo Bank, National Association,

                                   AS TRUSTEE

                  FLOATING RATE JUNIOR SUBORDINATED DEFERRABLE

                      INTEREST DEBENTURES DUE June 30, 2032

                          EFFECTIVE AS OF June 27, 2002

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
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ARTICLE I             DEFINITIONS................................................................................2

         Section 1.1           Definitions of Terms..............................................................2

ARTICLE II            ISSUE, DESCRIPTION, TERMS, CONDITIONS, REGISTRATION AND EXCHANGE OF THE DEBENTURES........10

         Section 2.1           Designation and Principal Amount.................................................10

         Section 2.2           Maturity.........................................................................10

         Section 2.3           Form and Payment.................................................................10

         Section 2.4           Intentionally Left Blank.........................................................11

         Section 2.5           Interest.........................................................................11

         Section 2.6           Execution and Authentications....................................................13

         Section 2.7           Registration of Transfer and Exchange............................................14

         Section 2.8           Temporary Debentures.............................................................17

         Section 2.9           Mutilated, Destroyed, Lost or Stolen Debentures..................................18

         Section 2.10          Cancellation.....................................................................18

         Section 2.11          Benefit of Indenture.............................................................19

         Section 2.12          Authentication Agent.............................................................19

ARTICLE III           REDEMPTION OF DEBENTURES..................................................................20

         Section 3.1           Special Event Redemption.........................................................20

         Section 3.2           Optional Redemption by Company...................................................20

         Section 3.3           Notice of Redemption.............................................................21

         Section 3.4           Payment Upon Redemption..........................................................22

         Section 3.5           No Sinking Fund..................................................................23

ARTICLE IV            EXTENSION OF INTEREST PAYMENT PERIOD......................................................23

         Section 4.1           Extension of Interest Payment Period.............................................23

         Section 4.2           Notice of Extension..............................................................23

         Section 4.3           Limitation on Transactions.......................................................24

ARTICLE V             PARTICULAR COVENANTS OF THE COMPANY.......................................................25

         Section 5.1           Payment of Principal and Interest................................................25

         Section 5.2           Maintenance of Agency............................................................25

         Section 5.3           Paying Agents....................................................................25
</TABLE>

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                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
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         Section 5.4           Appointment to Fill Vacancy in Office of Trustee.................................26

         Section 5.5           Compliance with Consolidation Provisions.........................................26

         Section 5.6           Limitation on Transactions.......................................................27

         Section 5.7           Covenants as to the Trust........................................................27

         Section 5.8           Covenants as to Purchases........................................................28

         Section 5.9           Waiver of Usury, Stay or Extension Laws..........................................28

ARTICLE VI            DEBENTUREHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE........................28

         Section 6.1           Company to Furnish Trustee Names and Addresses of Debentureholders...............28

         Section 6.2           Preservation of Information Communications with Debentureholders.................29

         Section 6.3           Reports by the Company...........................................................29

         Section 6.4           Reports by the Trustee...........................................................30

ARTICLE VII           REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS ON EVENT OF DEFAULT..........................31

         Section 7.1           Events of Default................................................................31

         Section 7.2           Collection of Indebtedness and Suits for Enforcement by Trustee..................32

         Section 7.3           Application of Money Collected...................................................34

         Section 7.4           Limitation on Suits..............................................................34

         Section 7.5           Rights and Remedies Cumulative; Delay or Omission not Waiver.....................35

         Section 7.6           Control by Debentureholders......................................................35

         Section 7.7           Undertaking to Pay Costs.........................................................36

         Section 7.8           Direct Action; Right of Set-Off..................................................36

ARTICLE VIII          FORM OF DEBENTURE AND ORIGINAL ISSUE......................................................37

         Section 8.1           Form of Debenture................................................................37

         Section 8.2           Original Issue of Debentures.....................................................37

ARTICLE IX            CONCERNING THE TRUSTEE....................................................................37

         Section 9.1           Certain Duties and Responsibilities of the Trustee...............................37

         Section 9.2           Notice of Defaults...............................................................38
</TABLE>

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
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         Section 9.3           Certain Rights of Trustee........................................................39

         Section 9.4           Trustee Not Responsible for Recitals, etc........................................40

         Section 9.5           May Hold Debentures..............................................................40

         Section 9.6           Moneys Held in Trust.............................................................40

         Section 9.7           Compensation and Reimbursement...................................................40

         Section 9.8           Reliance on Officers' Certificate................................................41

         Section 9.9           Disqualification; Conflicting Interests..........................................41

         Section 9.10          Corporate Trustee Required; Eligibility..........................................41

         Section 9.11          Resignation and Removal; Appointment of Successor................................42

         Section 9.12          Acceptance of Appointment by Successor...........................................43

         Section 9.13          Merger, Conversion, Consolidation or Succession to Business......................44

         Section 9.14          Preferential Collection of Claims Against the Company............................44

ARTICLE X             CONCERNING THE DEBENTUREHOLDERS...........................................................44

         Section 10.1          Evidence of Action by Holders....................................................44

         Section 10.2          Proof of Execution by Debentureholders...........................................45

         Section 10.3          Who May be Deemed Owners.........................................................45

         Section 10.4          Certain Debentures Owned by Company Disregarded..................................45

         Section 10.5          Actions Binding on Future Debentureholders.......................................46

ARTICLE XI            SUPPLEMENTAL INDENTURES...................................................................46

         Section 11.1          Supplemental Indentures Without the Consent of Debentureholders..................46

         Section 11.2          Supplemental Indentures with Consent of Debentureholders.........................47

         Section 11.3          Effect of Supplemental Indentures................................................48

         Section 11.4          Debentures Affected by Supplemental Indentures...................................48

         Section 11.5          Execution of Supplemental Indentures.............................................48

ARTICLE XII           SUCCESSOR CORPORATION.....................................................................49

         Section 12.1          Company May Consolidate, etc.....................................................49

         Section 12.2          Successor Person Substituted.....................................................49

         Section 12.3          Evidence of Consolidation, etc. to Trustee.......................................50

ARTICLE XIII          SATISFACTION AND DISCHARGE................................................................50
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                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
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         Section 13.1          Satisfaction and Discharge of Indenture..........................................50

         Section 13.2          Discharge of Obligations.........................................................50

         Section 13.3          Deposited Money to be Held in Trust..............................................51

         Section 13.4          Payment of Money Held by Paying Agents...........................................51

         Section 13.5          Repayment to Company.............................................................52

ARTICLE XIV           IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS...........................52

         Section 14.1          No Recourse......................................................................52

ARTICLE XV            MISCELLANEOUS PROVISIONS..................................................................52

         Section 15.1          Effect on Successors and Assigns.................................................52

         Section 15.2          Actions by Successor.............................................................53

         Section 15.3          Surrender of Company Powers......................................................53

         Section 15.4          Notices..........................................................................53

         Section 15.5          Governing Law....................................................................53

         Section 15.6          Treatment of Debentures as Debt..................................................53

         Section 15.7          Compliance Certificates and Opinions.............................................54

         Section 15.8          Payments on Business Days........................................................54

         Section 15.9          Application of Trust Indenture Act; Conflict.....................................54

         Section 15.10         Counterparts.....................................................................55

         Section 15.11         Severability.....................................................................55

         Section 15.12         Assignment.......................................................................55

         Section 15.13         Acknowledgment of Rights; Right of Set Off.......................................55

ARTICLE XVI           SUBORDINATION OF DEBENTURES...............................................................56

         Section 16.1          Agreement to Subordinate.........................................................56

         Section 16.2          Default on Senior Debt, Subordinated Debt or Additional Senior Obligations.......56

         Section 16.3          Liquidation; Dissolution; Bankruptcy.............................................56

         Section 16.4          Subrogation......................................................................58

         Section 16.5          Trustee to Effectuate Subordination..............................................59

         Section 16.6          Notice by the Company............................................................59

         Section 16.7          Rights of the Trustee; Holders of Senior Indebtedness............................60
</TABLE>

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                               TABLE OF CONTENTS
                                  (continued)

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<CAPTION>
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         <S>                                                                                                    <C>
         Section 16.8          Subordination may not be Impaired................................................60
</TABLE>

EXHIBIT

     Exhibit A     Floating Rate Junior Subordinated Deferrable Interest
Debenture of Mountainbank Financial Corporation

<PAGE>

                                    INDENTURE

     THIS INDENTURE, effective as of June 27, 2002, between Mountainbank
Financial Corporation, a North Carolina corporation (the "Company") and Wells
Fargo Bank, National Association, a national banking association with its
principal place of business in the State of Delaware (the "Trustee");

                                    RECITALS:

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance of
securities to be known as Floating Rate Junior Subordinated Deferrable Interest
Debentures due June 30, 2032 (hereinafter referred to as the "Debentures"), the
form and substance of such Debentures and the terms, provisions and conditions
thereof to be set forth as provided in this Indenture;

     WHEREAS, Mountainbank Capital Trust I, a Delaware statutory business trust
(the "Trust"), has offered in a private placement up to Twenty Million Dollars
($20,000,000) aggregate liquidation amount of its Trust Preferred Securities (as
defined herein) and proposes to invest the proceeds from such offering, together
with the proceeds of the issuance and sale by the Trust to the Company of up to
Six Hundred NineteenThousand Dollars ($619,000) aggregate liquidation amount of
its Common Securities (as defined herein), in up to Twenty Million Six Hundred
Nineteen Thousand Dollars ($20,619,000) aggregate principal amount of the
Debentures;

     WHEREAS, the Company has requested that the Trustee execute and deliver
this Indenture;

     WHEREAS, all requirements necessary to make this Indenture a valid
instrument in accordance with its terms, and to make the Debentures, when
executed by the Company and authenticated and delivered by the Trustee, the
valid obligations of the Company, have been performed, and the execution and
delivery of this Indenture have been duly authorized in all respects;

     WHEREAS, to provide the terms and conditions upon which the Debentures are
to be authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and

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

     NOW, THEREFORE, in consideration of the premises set forth herein and the
purchase of the Debentures by the holders thereof, it is mutually covenanted and
agreed as follows for the equal and ratable benefit of the holders of the
Debentures as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

     SECTION  1.1  DEFINITIONS OF TERMS.

     The terms defined in this Section 1.1 (except as otherwise expressly
provided in this Indenture or unless the context otherwise requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section 1.1 and shall include the
plural as well as the singular. All other terms used in this Indenture that are
defined in the Trust Indenture Act, or that are by reference in the Trust
Indenture Act and defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires), shall have the
meanings assigned to such terms in the Trust Indenture Act and in the Securities
Act as in force at the date of the execution of this instrument and as may be
amended from time to time. All accounting terms used herein and not expressly
defined shall have the meanings assigned to such terms in accordance with
Generally Accepted Accounting Principles.

     "Accelerated Maturity Date" means if the Company elects to accelerate the
Maturity Date in accordance with Sections 2.2 (b) and 2.2(c), the date selected
by the Company which is prior to the Scheduled Maturity Date, but is on an
Interest Payment Date after June 30, 2007.

     "Additional Interest" means interest earned and to be paid on interest that
was not timely paid.

     "Additional Senior Obligations" means all indebtedness of the Company
whether incurred on or prior to the date of this Indenture or thereafter
incurred, for claims in respect of derivative products such as interest and
foreign exchange rate contracts, commodity contracts and similar arrangements;
provided, however, that Additional Senior Obligations does not include claims in
respect of Senior Debt or Subordinated Debt or obligations which, by their
terms, are expressly stated to be not superior in right of payment to the
Debentures or to rank pari passu in right of payment with the Debentures. For
purposes of this definition, "claim" shall have the meaning assigned thereto in
Section 101(4) of the United States Bankruptcy Code of 1978, as amended.

     "Additional Sums" shall have the meaning set forth in Section 2.5 (g).

     "Administrative Trustees" shall have the meaning set forth in the Trust
Agreement.

     "Affiliate" means, with respect to a specified Person, (i) any Person
directly or indirectly owning, controlling or holding with power to vote 10% or
more of the outstanding voting securities or other ownership interests of the
specified Person; (ii) any Person 10% or more of whose outstanding voting
securities or other ownership interests are directly or indirectly owned,
controlled or held with power to vote by the specified Person; (iii) any Person
directly or indirectly controlling, controlled by, or under common control with
the specified Person; (iv) a partnership in which the specified Person is a
general partner; (v) any officer or director of the specified Person; and (vi)
if the specified Person is an individual, any entity of which the specified
Person is an officer, director or general partner.

<PAGE>

     "Authenticating Agent" means an authenticating agent with respect to the
Debentures appointed by the Trustee pursuant to Section 2.12.

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

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

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

     "Business Day" means, with respect to the Debentures, any day other than a
Saturday or a Sunday or a day on which federal or state banking institutions in
Delaware or Minnesota are authorized or required by law, executive order or
regulation to close, or a day on which the Corporate Trust Office of the Trustee
or the Property Trustee is closed for business.

     "Calculation Agent" shall have the meaning set forth in Section 2.5(d)(i).

     "Capital Treatment Event" means the receipt by the Company and the Trust of
an Opinion of Counsel, rendered by a law firm having a recognized national bank
regulatory practice, to the effect that, as a result of (a) any amendment to, or
change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States or any political subdivision
thereof or therein, or (b) any official or administrative pronouncement or
action 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 issuance of the Trust Preferred Securities
under the Trust Agreement, there is more than an insubstantial risk of
impairment of the Company's ability to treat the Trust Preferred Securities (or
any substantial portion thereof) as Tier 1 capital (or the then equivalent
thereof), for purposes of the capital adequacy guidelines of the Federal Reserve
(or any successor thereto), as then in effect and applicable to the Company;
provided, however, that the Trust or the Company shall have requested and
received such an Opinion of Counsel with regard to such matters within a
reasonable period of time after the Trust or the Company shall have become aware
of the probable occurrence of any such event.

     "Certificate" means a certificate signed by the principal executive
officer, the principal financial officer, the principal accounting officer, the
treasurer or any vice president of the Company. The Certificate need not comply
with the provisions of Section 15.7.

     "Change in 1940 Act Law" shall have the meaning set forth in the definition
of "Investment Company Event."

     "Commission" means the Securities and Exchange Commission.

     "Common Securities" means undivided common beneficial interests in the
assets of the Trust that rank pari passu with the Trust Preferred Securities;
provided, however, that upon the occurrence of an Event of Default, the rights
of holders of Common Securities to payment in

<PAGE>

respect of distributions and payments upon liquidation, redemption and otherwise
are subordinated to the rights of holders of Trust Preferred Securities.

     "Company" means Mountainbank Financial Corporation, a corporation duly
organized and validly existing under the laws of the State of North Carolina,
and, subject to the provisions of Article XII, shall also include its successors
and assigns.

     "Compounded Interest" shall have the meaning set forth in Section 4.1.

     "Corporate Trust Office" means the office of the Trustee or the Property
Trustee at which, at any particular time, its corporate trust business shall be
principally administered, which office at the date hereof is located at 919
Market Street, Suite 700, Wilmington, Delaware 19801, Attention: Corporate Trust
Administration.

     "Custodian" means any receiver, trustee, assignee, liquidator, or similar
official under any Bankruptcy Law.

     "Debentures" shall have the meaning set forth in the Recitals hereto.

     "Debentureholder," "holder of Debentures," "registered holder," or other
similar term, means the Person or Persons in whose name or names a particular
Debenture shall be registered on the books of the Company or the Trustee kept
for that purpose in accordance with the terms of this Indenture.

     "Debenture Register" shall have the meaning set forth in Section 2.7(b).

     "Debt" means with respect to any Person, whether recourse is to all or a
portion of the assets of such Person and whether or not contingent, (i) every
obligation of such Person for money borrowed; (ii) every obligation of such
Person evidenced by bonds, debentures, notes or other similar instruments,
including obligations incurred in connection with the acquisition of property,
assets or businesses; (iii) every reimbursement obligation of such Person with
respect to letters of credit, bankers' acceptances or similar facilities issued
for the account of such Person; (iv) every obligation of such Person issued or
assumed as the deferred purchase price of property or services (but excluding
trade accounts payable or accrued liabilities arising in the ordinary course of
business); (v) every capital lease obligation of such Person; and (vi) every
obligation of the type referred to in clauses (i) through (v) of another Person
and all dividends of another Person the payment of which, in either case, such
Person has guaranteed or is responsible or liable, directly or indirectly, as
obligor or otherwise.

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

     "Deferred Interest" shall have the meaning set forth in Section 4.1.

     "Dissolution Event" means that as a result of the occurrence and
continuation of a Special Event, the Trust is to be dissolved in accordance with
the Trust Agreement and the Debentures held by the Property Trustee are to be
distributed to the holders of the Trust Securities issued by the Trust pro rata
in accordance with the Trust Agreement.

<PAGE>

     "Event of Default" means, with respect to the Debentures, any event
specified in Section 7.1, which has continued for the period of time, if any,
and after the giving of the notice, if any, therein designated.

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

     "Extended Interest Payment Period" shall have the meaning set forth in
Section 4.1.

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

     "Floating Interest Rate" shall have the meaning set forth in Section
2.5(a).

     "Generally Accepted Accounting Principles" means such accounting principles
as are generally accepted at the time of any computation required hereunder.

     "Governmental Obligations" means securities that are (i) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged; or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any such Governmental
Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of
such depository receipt; provided, however, that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depositary receipt.

     "Herein," "hereof," and "hereunder," and other words of similar import,
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into in accordance with the terms hereof.

     "Interest Payment Date," has the meaning specified in Section 2.5(a).

     "Interest Reset Date" has the meaning specified in Section 2.5(d).

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

     "Investment Company Event" means the receipt by the Trust and the Company
of an Opinion of Counsel, rendered by a law firm having a recognized national
securities law practice, to the effect that, as a result of the occurrence of a
change in law or regulation or a change in

<PAGE>

interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority (a "Change in 1940 Act Law"),
the Trust is or shall be considered an "investment company" that is required to
be registered under the Investment Company Act, which Change in 1940 Act Law
becomes effective on or after the date of original issuance of the Trust
Preferred Securities under the Trust Agreement; provided, however, that the
Trust or the Company shall have requested and received such an Opinion of
Counsel with regard to such matters within a reasonable period of time after the
Trust or the Company shall have become aware of a Change in 1940 Act Law.

     "Maturity Date" means the date on which the Debentures mature and on which
the principal shall be due and payable together with all accrued and unpaid
interest thereon including Compounded Interest and Additional Interest, if any.

     "Ministerial Action" shall have the meaning set forth in Section 3.1.

     "Officers' Certificate" means a certificate signed by the Chief Executive
Officer, President or a Vice President and by the Treasurer or an Assistant
Treasurer or the Secretary or an Assistant Secretary of the Company that is
delivered to the Trustee in accordance with the terms hereof. Each such
certificate shall include the statements provided for in Section 15.7, if and to
the extent required by the provisions thereof.

     "Opinion of Counsel" means an opinion in writing of independent, outside
legal counsel for the Company that is delivered to the Trustee in accordance
with the terms hereof. Each such opinion shall include the statements provided
for in Section 15.7, if and to the extent required by the provisions thereof.

     "Outstanding," when used with reference to the Debentures, means, subject
to the provisions of Section 10.4, as of any particular time, all Debentures
theretofore authenticated and delivered by the Trustee under this Indenture,
except (i) Debentures theretofore canceled by the Trustee or any Paying Agent,
or delivered to the Trustee or any Paying Agent for cancellation or that have
previously been canceled; (ii) Debentures or portions thereof for the payment or
redemption of which money or Governmental Obligations in the necessary amount
shall have been deposited in trust with the Trustee or with any Paying Agent
(other than the Company) or shall have been set aside and segregated in trust by
the Company (if the Company shall act as its own Paying Agent); provided,
however, that if such Debentures or portions of such Debentures are to be
redeemed prior to the maturity thereof, notice of such redemption shall have
been given as provided in Article III or provision satisfactory to the Trustee
shall have been made for giving such notice; and (iii) Debentures in lieu of or
in substitution for which other Debentures shall have been authenticated and
delivered pursuant to the terms of Section 2.7; provided, however, that in
determining whether the holders of the requisite percentage of Debentures have
given any such request, notice, consent or waiver hereunder, Debentures held by
the Company or any Affiliate of the Company shall not be included; provided,
further, that the Trustee shall be protected in acting or relying upon any
request, notice, consent or waiver unless a Responsible Officer of the Trustee
shall have actual knowledge that the holder of any such Debenture is the Company
or an Affiliate thereof.

<PAGE>

     "Paying Agent" means any paying agent or co-paying agent appointed pursuant
to Section 5.3.

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

     "Predecessor Debenture" means every previous Debenture evidencing all or a
portion of the same debt as that evidenced by such particular Debenture; and,
for the purposes of this definition, any Debenture authenticated and delivered
under Section 2.9 in lieu of a lost, destroyed or stolen Debenture shall be
deemed to evidence the same debt as the lost, destroyed or stolen Debenture.

     "Property Trustee" has the meaning set forth in the Trust Agreement.

     "Resale Restriction Termination Date" means, with respect to the offer,
sale or other transfer of a Debenture, (a) the date which is two years (or such
shorter period of time as permitted by Rule 144(k) under the Securities Act)
after the later of the original issue date of such Debenture and the last date
on which the Company or any Affiliate of the Company was the owner of such
Debenture (or any predecessor of the Debenture) and (b) such later date, if any,
as may be required by applicable laws.

     "Redemption Date" shall have the meaning set forth in Section 3.2(a).

     "Redemption Price" shall have the meaning set forth in Section 3.1.

     "Responsible Officer" when used with respect to the Trustee means any
officer within the Corporate Trust Office of the Trustee with direct
responsibility for the administration of this Indenture, including any vice
president, any assistant vice president, any assistant secretary or any other
officer or assistant officer of the Trustee customarily performing functions
similar to those performed by the Persons who at the time shall be such officers
or to whom such corporate trust matter is referred because of that officer's
knowledge of and familiarity with the particular subject.

     "Scheduled Maturity Date" means June 30, 2032.

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

     "Senior Debt" means the principal of (and premium, if any) and interest, if
any (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not such
claim for post-petition interest is allowed in such proceeding), on all Debt,
whether incurred on or prior to the date of this Indenture or thereafter
incurred, unless, in the instrument creating or evidencing the same or pursuant
to which the same is outstanding, it is provided that such obligations are not
superior in right of payment to the Debentures or to other Debt which is pari
passu with, or subordinated to, the Debentures; provided, however, that Senior
Debt shall not be deemed to include (i) any Debt of the Company owed which when
incurred and without respect to any election under Section 1111(b) of the

<PAGE>

United States Bankruptcy Code of 1978, as amended, was without recourse to the
Company; (ii) Debt which by its terms is subordinated to trade accounts payable
or accrued liabilities arising in the ordinary course of business; and (iii)
Debt which constitutes Subordinated Debt.

     "Senior Indebtedness" shall have the meaning set forth in Section 16.1.

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

     "Subordinated Debt" means the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company whether or
not such claim for post-petition interest is allowed in such proceeding), on
Debt, whether incurred on or prior to the date of this Indenture or thereafter
incurred, which is by its terms expressly provided to be junior and subordinate
to Senior Debt of the Company (other than the Debentures); provided, however,
that Subordinated Debt will not be deemed to include (i) any Debt of the Company
which when incurred and without respect to any election under Section 1111(b) of
the United States Bankruptcy Code of 1978, as amended, was without recourse to
the Company, (ii) any Debt which by its terms is subordinated to trade accounts
payable or accrued liabilities arising in the ordinary course of business; (iii)
Debt which constitutes Senior Debt and (iv) any Debt of the Company under debt
securities (and guarantees in respect of these debt securities) initially issued
to any trust, or a trustee of a trust, partnership or other entity affiliated
with the Company that is, directly or indirectly, a financing vehicle of the
Company in connection with the issuance by that entity of preferred securities
or other securities which are intended to qualify for Tier 1 capital treatment
for purposes of the capital adequacy guidelines of the Federal Reserve, as then
in effect.

     "Subsidiary" means, with respect to any Person, (i) any corporation at
least a majority of whose outstanding Voting Stock shall at the time be owned,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries; (ii) any general
partnership, limited liability company, joint venture or similar entity, at
least a majority of whose outstanding partnership or similar interests shall at
the time be owned by such Person, or by one or more of its Subsidiaries, or by
such Person and one or more of its Subsidiaries; and (iii) any limited
partnership of which such Person or any of its Subsidiaries is a general
partner.

     "Tax Event" means the receipt by the Company and the Trust of an Opinion of
Counsel, rendered by a law firm having a recognized federal tax law practice, 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 issuance of the Trust Preferred Securities under the Trust
Agreement, there is more than an insubstantial risk that (i) the Trust is, or
shall be within 90 days after the date of such Opinion of Counsel, subject to
United States federal income tax with respect to income received or accrued on
the Debentures; (ii) interest payable by the Company on the Debentures is not,
or within 90 days after the date of such Opinion of Counsel, shall not be,
deductible by the Company, in whole or in part, for

<PAGE>

United States federal income tax purposes; or (iii) the Trust is, or shall be
within 90 days after the date of such Opinion of Counsel, subject to more than a
de minimis amount of other taxes, duties, assessments or other governmental
charges; provided, however, that the Trust or the Company shall have requested
and received such an Opinion of Counsel with regard to such matters within a
reasonable period of time after the Trust or the Company shall have become aware
of the occurrence or the possible occurrence of any of the events described in
clauses (i) through (iii) above.

     "Three-Month LIBOR" shall have the meaning set forth in Section 2.5(d).

     "Trust" means Mountainbank Capital Trust I, a Delaware statutory business
trust.

     "Trust Agreement" means the Amended and Restated Trust Agreement, effective
as of June 27, 2002, of the Trust, as amended from time to time.

     "Trust Preferred Securities" means undivided preferred beneficial interests
in the assets of the Trust that rank pari passu with Common Securities issued by
the Trust; provided, however, that upon the occurrence of an Event of Default,
the rights of holders of Common Securities to payment in respect of
distributions and payments upon liquidation, redemption and otherwise are
subordinated to the rights of holders of Trust Preferred Securities.

     "Trust Preferred Securities Guarantee" means any guarantee that the Company
may enter into with the Trustee or other Persons that operates directly or
indirectly for the benefit of holders of Trust Preferred Securities.

     "Trustee" means Wells Fargo Bank, National Association and, subject to the
provisions of Article IX, shall also include its successors and assigns in each
such Person's capacity as trustee hereunder, and, if at any time there is more
than one Person acting in such capacity hereunder, "Trustee" shall mean each
such Person.

     "Trust Indenture Act," means the Trust Indenture Act of 1939 or any
successor statute thereto, in each case as amended from time to time.

     "Trust Securities" means the Common Securities and Trust Preferred
Securities, collectively.

     "Voting Stock," as applied to stock of any Person, means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of
the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the
occurrence of a contingency.

<PAGE>

                                   ARTICLE II

                     ISSUE, DESCRIPTION, TERMS, CONDITIONS,

                   REGISTRATION AND EXCHANGE OF THE DEBENTURES

     SECTION 2.1   DESIGNATION AND PRINCIPAL AMOUNT.

     There is hereby authorized Debentures designated the "Floating Rate Junior
Subordinated Deferrable Interest Debentures due June 30, 2032," limited in
aggregate principal amount to Twenty Million Six Hundred Nineteen Thousand
Dollars ($20,619,000) which amount shall be as set forth in any written order of
the Company for the authentication and delivery of Debentures pursuant to
Section 2.6.

     SECTION 2.2   MATURITY.

             (a)   The Maturity Date shall be either:

             (i)   the Scheduled Maturity Date; or

             (ii)  if the Company elects to accelerate the Maturity Date to be a
                   date prior to the Scheduled Maturity Date in accordance with
                   Sections 2.2(b) and 2.2(c), the Accelerated Maturity Date.

             (b)   The Company may at any time before the day which is 90 days
     before the Scheduled Maturity Date and after June 30, 2007, elect to
     shorten the Maturity Date only once to the Accelerated Maturity Date
     provided that the Company has received the prior approval of the Federal
     Reserve if then required under applicable capital guidelines, policies or
     regulations of the Federal Reserve.

             (c)   If the Company elects to accelerate the Maturity Date in
     accordance with Section 2.2(b), the Company shall give notice to the
     Trustee and the Trust (unless the Property Trustee is not the holder of the
     Debentures, in which case the Trustee will give notice to the holders of
     the Debentures) of the acceleration of the Maturity Date and the
     Accelerated Maturity Date at least 30 days and no more than 180 days before
     the Accelerated Maturity Date.

     SECTION 2.3   FORM AND PAYMENT.

     The Debentures shall be issued in certificated form, registered in the name
of the holder thereof, without interest coupons. The Debentures, including the
Certificate of Authentication, shall be substantially in the form of Exhibit A
hereto. Prior to the Resale Restriction Termination Date, the Debentures will be
issued and may only be transferred in a minimum aggregate principal amount of
$100,000. Subsequent to the Resale Restriction Termination Date, the Debentures
may only be transferred in a minimum aggregate principal amount of $100,000. Any
attempted transfer not in accordance with the preceding two sentences shall be
void and of no effect whatsoever.

<PAGE>

     Principal and interest on the Debentures issued in certificated form shall
be payable, the transfer of such Debentures shall be registrable and such
Debentures shall be exchangeable for Debentures bearing identical terms and
provisions at or through the office or agency of the Trustee; provided, however,
that payment of interest may be made at the option of the Company by check
mailed to the holder at such address as shall appear in the Debenture Register
or by wire transfer to an account maintained by the holder as specified in the
Debenture Register, provided that the holder provides proper transfer
instructions by the regular record date. Notwithstanding the foregoing, so long
as the holder of any Debentures is the Property Trustee, the payment of
principal of and interest (including Compounded Interest and Additional
Interest, if any) on such Debentures held by the Property Trustee shall be made
at such place and to such account as may be designated by the Property Trustee.

     SECTION 2.4   INTENTIONALLY LEFT BLANK.

     SECTION 2.5   INTEREST.

             (a)   Each Debenture shall bear interest at the rate of 3.65% per
     annum over the Three-Month LIBOR Rate, calculated on each Interest Reset
     Date (the "Floating Interest Rate"), from the original date of issuance
     until the principal thereof becomes due and payable, and on any overdue
     principal and (to the extent that payment of such interest is enforceable
     under applicable law) on any overdue installment of interest at the
     Floating Interest Rate, compounded quarterly, payable (subject to the
     provisions of Article IV) quarterly in arrears on March 30, June 30,
     September 30 and December 30 of each year (each such date, an "Interest
     Payment Date," and each quarterly period, an "Interest Payment Period"),
     commencing on September 30, 2002 to the Person in whose name such Debenture
     or any Predecessor Debenture is registered, at the close of business on the
     regular record date for such interest installment, which shall be the 15th
     of the last month of each Interest Payment Period.

             (b)   The Floating Interest Rate for each Interest Payment Period
     will be set on the second London business day preceding each Interest
     Payment Date; provided, that the initial Floating Interest Rate will be set
     on June 27, 2002. If the Interest Reset Date is not a Business Day, then
     such Interest Reset Date shall be the next succeeding day which is a
     Business Day. In no event shall the Floating Interest Rate exceed 12% prior
     to June 30, 2007.

             (c)   The amount of interest payable for any Interest Payment
     Period shall be computed on the basis of a 360-day year and the actual
     number of days in such Interest Payment Period. In the event that any date
     on which interest is payable on the Debentures is not a Business Day, then
     payment of interest payable on such date shall be made on the next
     succeeding day which is a Business Day except that, if such Business Day is
     in the next succeeding calendar year, such payment shall be made on the
     immediately preceding Business Day, in each case with the same force and
     effect as if made on the date such payment was originally payable.

             (d)   The "Three-Month LIBOR Rate" shall mean the rate determined
     in accordance with the following provisions:

<PAGE>

             (i)   On the second London Business Day (provided that on such day
                   commercial banks are open for business (including dealings in
                   foreign currency deposits) in London (a "LIBOR Banking Day")
                   preceding each January 15, April 15, July 15 and October 15
                   (except with respect to the first Interest Payment Period
                   commencing June 27, 2002) (each such date, an "Interest Reset
                   Date"), Wells Fargo Bank, National Association (the
                   "Calculation Agent"), will determine the Three-Month LIBOR
                   Rate which shall be the rate for deposits in the London
                   interbank market in U.S. dollars having a three-month
                   maturity which appears on the Telerate Page 3750 as of 11:00
                   a.m., London time, on such Interest Reset Date. "Telerate
                   Page 3750" means the display on Page 3750 of the Bloomberg
                   Financial Markets Commodities News (or such other page as may
                   replace that page on that service for the purpose of
                   displaying London interbank offered rates of major banks for
                   U.S. dollar deposits). If the Three-Month LIBOR Rate on such
                   Interest Reset Date does not appear on the Telerate Page
                   3750, such Three-Month LIBOR Rate will be determined as
                   described in (ii) below. "LIBOR Business Day" means any day
                   that is not a Saturday, Sunday or other day on which
                   commercial banking institutions in New York, New York or
                   Wilmington, Delaware are authorized or obligated by law or
                   executive order to be closed. If such rate is superseded on
                   Telerate Page 3750 by a corrected rate before 12:00 noon
                   (London time) on the same Interest Reset Date, the corrected
                   rate as so substituted will be the applicable LIBOR for that
                   Interest Reset Date.

             (ii)  If, on any Interest Reset Date, such rate does not appear on
                   Telerate Page 3750 as reported by Bloomberg Financial Markets
                   Commodities News or such other page as may replace such
                   Telerate Page 3750, the Calculation Agent shall determine the
                   arithmetic mean of quotations of the Reference Banks (defined
                   below) to leading banks in the London interbank market for
                   three-month U.S. Dollar deposits in Europe (in an amount
                   determined by the Calculation Agent by reference to requests
                   for quotations as of approximately 11:00 a.m. (London time)
                   on the Interest Reset Date made by the Calculation Agent to
                   the Reference Banks. If, on any Interest Reset Date, only one
                   or none of the Reference Banks provide such a quotation,
                   LIBOR shall be deemed to be the arithmetic mean of the
                   offered quotations that at least two leading banks in the
                   City of New York (as selected by the Calculation Agent) are
                   quoting on the relevant Interest Reset Date for three-month
                   U.S. Dollar deposits in Europe at approximately 11:00 a.m.
                   (London time) (in an amount determined by the Calculation
                   Agent). As used herein, "Reference Banks" means four major
                   banks in the London interbank market selected by the
                   Calculation Agent.

             (iii) If the Calculation Agent is required but is unable to
                   determine a rate in accordance with at least one of the
                   procedures provided above, LIBOR shall be LIBOR in effect on
                   the previous Interest Reset Date (whether or not LIBOR for
                   such period was in fact determined on such Interest Reset
                   Date)

<PAGE>

             (e)   The Trustee shall provide written notice of the Floating
     Interest Rate as certified by the Calculation Agent to each holder of
     Debentures as set forth in the Debenture Register no later than five
     Business Days following each Interest Reset Date.

             (f)   If, at any time while the Trust or the Property Trustee is
     the holder of any Debentures, the Trust or the Property Trustee is subject
     to or is required to pay any taxes, duties, assessments or governmental
     charges of whatever nature (including withholding taxes) imposed by the
     United States, or any other taxing authority, then, in any case, the
     Company shall pay as additional amounts ("Additional Sums") on the
     Debentures held by the Trust or the Property Trustee, such additional
     amounts as shall be required so that the net amounts received and retained
     by the Trust and the Property Trustee after the withholding or paying of
     such taxes, duties, assessments or other governmental charges shall be
     equal to the amounts the Trust and the Property Trustee would have received
     and retained had no such taxes, duties, assessments or other government
     charges been imposed.

             (g)   The Floating Interest Rate will in no event be higher than
     the maximum rate permitted by the law of the State of North Carolina, or,
     if higher, the law of the United States of America.

     SECTION 2.6   EXECUTION AND AUTHENTICATIONS.

             (a)   The Debentures shall be signed on behalf of the Company by
     its Chief Executive Officer, President or one of its Vice Presidents, under
     its corporate seal, if any, attested by its Secretary or one of its
     Assistant Secretaries. Signatures may be in the form of a manual or
     facsimile signature. The Company may use the facsimile signature of any
     Person who shall have been a Chief Executive Officer, President or Vice
     President thereof, or of any Person who shall have been a Secretary or
     Assistant Secretary thereof, notwithstanding the fact that at the time the
     Debentures shall be authenticated and delivered or disposed of such Person
     shall have ceased to be the Chief Executive Officer, President or a Vice
     President, or the Secretary or an Assistant Secretary, of the Company (and
     any such signature shall be binding on the Company). The corporate seal of
     the Company, if any, may be in the form of a facsimile of such seal and may
     be impressed, affixed, imprinted or otherwise reproduced on the Debentures.
     The Debentures may contain such notations, legends or endorsements required
     by law, stock exchange rule or usage. Each Debenture shall be dated the
     date of its authentication by the Trustee. A Debenture shall not be valid
     until authenticated manually by an authorized signatory of the Trustee, or
     by an Authenticating Agent. Such signature shall be conclusive evidence
     that the Debenture so authenticated has been duly authenticated and
     delivered hereunder and that the holder is entitled to the benefits of this
     Indenture.

             (b)   At any time and from time to time after the execution and
     delivery of this Indenture, the Company may deliver Debentures executed by
     the Company to the Trustee for authentication, together with a written
     order of the Company for the authentication and delivery of such Debentures
     signed by its Chief Executive Officer, President or any Vice President and
     its Treasurer or any Assistant Treasurer, and the Trustee in accordance
     with such written order shall authenticate and deliver such Debentures.

<PAGE>

             (c)   In authenticating such Debentures and accepting the
     additional responsibilities under this Indenture in relation to such
     Debentures, the Trustee shall be entitled to receive, and (subject to
     Section 9.1(b)) shall be fully protected in relying upon, an Opinion of
     Counsel stating that the form and terms thereof have been established in
     conformity with the provisions of this Indenture.

             (d)   The Trustee shall not be required to authenticate such
     Debentures if the issue of such Debentures pursuant to this Indenture shall
     affect the Trustee's own rights, duties or immunities under the Debentures
     and this Indenture or otherwise in a manner that is not reasonably
     acceptable to the Trustee.

     SECTION 2.7   REGISTRATION OF TRANSFER AND EXCHANGE.

             (a)   Subject to Section 2.3, Debentures may be exchanged upon
     presentation thereof at the office or agency of the Company designated for
     such purpose in Wilmington, Delaware or at the office of the Debenture
     Registrar, for other Debentures and for a like aggregate principal amount
     in denominations of integral multiples of $1,000, upon payment of a sum
     sufficient to cover any tax or other governmental charge in relation
     thereto, all as provided in this Section 2.7. In respect of any Debentures
     so surrendered for exchange, the Company shall execute, the Trustee, upon
     written order of the Company, shall authenticate and such office or agency
     shall deliver in exchange therefore the Debenture or Debentures that the
     Debentureholder making the exchange shall be entitled to receive, bearing
     numbers not contemporaneously outstanding.

             (b)   The Company shall keep, or cause to be kept, at its office or
     agency designated for such purpose in Wilmington, Delaware or at the office
     of the Debenture Registrar or such other location designated by the Company
     a register or registers (herein referred to as the "Debenture Register") in
     which, subject to such reasonable regulations as it may prescribe, the
     Company shall register the Debentures and the transfers of Debentures as
     provided in this Article II and which at all reasonable times shall be open
     for inspection by the Trustee. The registrar for the purpose of registering
     Debentures and transfer of Debentures as herein provided shall initially be
     the Trustee and thereafter as may be appointed by the Company as authorized
     by Board Resolution (the "Debenture Registrar"). Subject to Section 2.3,
     upon surrender for transfer of any Debenture at the office or agency of the
     Company designated for such purpose, the Company shall execute, the
     Trustee, upon written order of the Company, shall authenticate and such
     office or agency shall deliver in the name of the transferee or transferees
     a new Debenture or Debentures for a like aggregate principal amount. All
     Debentures presented or surrendered for exchange or registration of
     transfer, as provided in this Section 2.7, shall be accompanied (if so
     required by the Company or the Debenture Registrar) by a written instrument
     or instruments of transfer, in form satisfactory to the Company or the
     Debenture Registrar, duly executed by the registered holder or by such
     holder's duly authorized attorney in writing.

             (c)   Notwithstanding anything herein to the contrary, Debentures
     may not be transferred except in compliance with the restricted securities
     legends set forth below,

<PAGE>

     unless otherwise determined by the Company, upon the advice of legal
     counsel, in accordance with applicable law:

     THIS DEBENTURE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER
     APPLICABLE SECURITIES LAWS. NEITHER THIS DEBENTURE NOR ANY INTEREST OR
     PARTICIPATION HEREIN MAY BE REOFFERED SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
     ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
     UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
     REGISTRATION. PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER
     PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT) AFTER
     THE LATER OF (i) THE ORIGINAL ISSUE DATE HEREOF OR (ii) THE LAST DATE ON
     WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
     DEBENTURE (OR ANY PREDECESSOR OF THIS DEBENTURE) AND (Y) SUCH LATER DATE,
     IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAWS (THE "RESALE RESTRICTION
     TERMINATION DATE"), THE HOLDER OF THIS DEBENTURE BY ITS ACCEPTANCE HEREOF
     AGREES FOR THE BENEFIT OF THE COMPANY TO OFFER, SELL OR OTHERWISE TRANSFER
     THIS DEBENTURE ONLY (A) TO THE COMPANY OR AN AFFILIATE OF THE COMPANY, (B)
     PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
     UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS DEBENTURE IS ELIGIBLE FOR
     RESALE PURSUANT TO RULE 144A ("RULE 144A") PROMULGATED UNDER THE SECURITIES
     ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
     BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
     THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
     144A, (D) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF
     SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT
     THAT IS ACQUIRING THIS DEBENTURE FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF
     SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND
     NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
     DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
     AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
     ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH
     OFFER, SALE, TRANSFER OR OTHER DISPOSITION (i) PURSUANT TO CLAUSES (D) OR
     (E) TO REQUIRE THE DELIVERY BY THE HOLDER OF AN OPINION OF COUNSEL,
     CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY TO
     CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR
     IN A TRANSACTION NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT AND (ii) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
     CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
     DEBENTURE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE

<PAGE>

     TRUSTEE AND THE REGISTRAR IN CONNECTION WITH ANY TRANSFER OF THIS DEBENTURE
     PRIOR TO THE RESALE RESTRICTION TERMINATION DATE. THE HOLDER MUST CHECK THE
     APPROPRIATE BOX SET FORTH ON THE CERTIFICATE OF TRANSFER RELATING TO THE
     MANNER OF SUCH TRANSFER AND SUBMIT THE CERTIFICATE OF TRANSFER TO THE
     TRUSTEE AND THE REGISTRAR. THIS LEGEND WILL BE REMOVED UPON REQUEST OF THE
     HOLDER AFTER THE EARLIER OF (i) THE TRANSFER OF THE DEBENTURE EVIDENCED
     HEREBY PURSUANT TO CLAUSE (B) ABOVE OR (ii) THE RESALE RESTRICTION
     TERMINATION DATE. THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
     TO, NOTIFY ANY PURCHASER OF THIS DEBENTURE OF THE RESALE RESTRICTIONS
     REFERRED TO HEREIN.

     PRIOR TO THE RESALE RESTRICTION TERMINATION DATE, THIS DEBENTURE MAY BE
     TRANSFERRED OR EXCHANGED ONLY IN A MINIMUM AGGREGATE PRINCIPAL AMOUNT OF
     NOT LESS THAN $100,000. ANY ATTEMPTED TRANSFER OF THIS DEBENTURE IN AN
     AGGREGATE PRINCIPAL AMOUNT OF LESS THAN $100,000 PRIOR TO THE RESALE
     RESTRICTION TERMINATION DATE SHALL BE DEEMED TO BE VOID AND OF NO LEGAL
     EFFECT WHATSOEVER. AFTER SUCH RESALE RESTRICTION TERMINATION DATE, ANY
     ATTEMPTED TRANSFER OF THIS DEBENTURE IN AN AGGREGATE PRINCIPAL AMOUNT OF
     LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
     WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE
     HOLDER OF THIS DEBENTURE FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO,
     THE RIGHT TO RECEIVE INTEREST PAYMENTS ON THIS DEBENTURE, AND SUCH
     PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS
     DEBENTURE.

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

             (d)   No service charge shall be made for any exchange or
     registration of transfer of Debentures, or issue of new Debentures in case
     of partial redemption, but the Company may require payment of a sum
     sufficient to cover any tax or other governmental charge in relation
     thereto. Other than exchanges pursuant to Section 2.8, the Company shall
     not be required (i) to issue, exchange or register the transfer of any
     Debentures during a period beginning at the opening of 15 business days
     before the day of the mailing of a notice of redemption of less than all
     the Outstanding Debentures and ending at the close of business on the day
     of such mailing; nor (ii) to register the transfer of or exchange any
     Debentures or portions thereof called for redemption.

             (e)   Nothing herein withstanding, the Property Trustee shall not
     be authorized, other than in the case of Default, to cause the transfer of
     a Debenture issued hereunder

<PAGE>

     except (i) upon prior consent and authorization by the Administrative
     Trustees or (ii) upon order of a court of competent jurisdiction.

             (f)   Debentures may only be transferred, in whole or in part, in
     accordance with the terms and conditions set forth in this Indenture. Any
     transfer or purported transfer of any Debenture not made in accordance with
     this Indenture shall be null and void.

     SECTION 2.8   TEMPORARY DEBENTURES.

     Pending the preparation of definitive Debentures, the Company may execute,
and the Trustee shall authenticate and deliver, temporary Debentures (printed,
lithographed, or typewritten). Such temporary Debentures shall be substantially
in the form of the definitive Debentures in lieu of which they are issued, but
with such omissions, insertions and variations as may be appropriate for
temporary Debentures, all as may be determined by the Company. Every temporary
Debenture shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Debentures. Without unnecessary delay the Company
shall execute and shall furnish definitive Debentures and thereupon any or all
temporary Debentures may be surrendered in exchange therefor (without charge to
the holders), at the office or agency of the Company designated for that purpose
in Wilmington, Delaware or such other office or agency as the Company shall
designate for that purpose pursuant to Section 5.2 hereof, and the Trustee shall
authenticate, upon written order of the Company, and such office or agency shall
deliver in exchange for such temporary Debentures an equal aggregate principal
amount of definitive Debentures, unless the Company advises the Trustee to the
effect that definitive Debentures need not be authenticated and furnished until
further notice from the Company. Until so exchanged, the temporary Debentures
shall be entitled to the same benefits under this Indenture as definitive
Debentures authenticated and delivered hereunder.

     SECTION 2.9   MUTILATED, DESTROYED, LOST OR STOLEN DEBENTURES.

             (a)   In case any temporary or definitive Debenture shall become
     mutilated or be destroyed, lost or stolen, the Company (subject to the next
     succeeding sentence) shall execute, and upon the Company's written order
     and request the Trustee (subject as aforesaid) shall authenticate and
     deliver, a new Debenture bearing a number not contemporaneously
     outstanding, in exchange and substitution for the mutilated Debenture, or
     in lieu of and in substitution for the Debenture so destroyed, lost, stolen
     or mutilated. In every case the applicant for a substituted Debenture shall
     furnish to the Company and the Trustee such security or indemnity as may be
     required by them to hold each of them harmless, and, in every case of
     destruction, loss or theft, the applicant shall also furnish to the Company
     and the Trustee evidence to their satisfaction of the destruction, loss or
     theft of the applicant's Debenture and of the ownership thereof. The
     Trustee may authenticate any such substituted Debenture and deliver the
     same upon the written order and request or authorization of the Chief
     Executive Officer, President or any Vice President and the Treasurer or any
     Assistant Treasurer of the Company. Upon the issuance of any substituted
     Debenture, the Company may require the payment of a sum sufficient to cover
     any tax or other governmental charge that may be imposed in

<PAGE>

     relation thereto and any other expenses (including the fees and expenses of
     the Trustee) connected therewith. In case any Debenture that has matured or
     is about to mature shall become mutilated or be destroyed, lost or stolen,
     the Company may, instead of issuing a substitute Debenture, pay or
     authorize the payment of the same (without surrender thereof except in the
     case of a mutilated Debenture) if the applicant for such payment shall
     furnish to the Company and the Trustee such security or indemnity as they
     may require to hold them harmless, and, in case of destruction, loss or
     theft, evidence to the satisfaction of the Company and the Trustee of the
     destruction, loss or theft of such Debenture and of the ownership thereof.

             (b)   Every replacement Debenture issued pursuant to the provisions
     of this Section 2.9 shall constitute an additional contractual obligation
     of the Company whether or not the mutilated, destroyed, lost or stolen
     Debenture shall be found at any time, or be enforceable by anyone, and
     shall be entitled to all the benefits of this Indenture equally and
     proportionately with any and all other Debentures duly issued hereunder.
     All Debentures shall be held and owned upon the express condition that the
     foregoing provisions are exclusive with respect to the replacement or
     payment of mutilated, destroyed, lost or stolen Debentures, and shall
     preclude (to the extent lawful) any and all other rights or remedies,
     notwithstanding any law or statute existing or hereafter enacted to the
     contrary with respect to the replacement or payment of negotiable
     instruments or other securities without their surrender.

     SECTION 2.10  CANCELLATION.

     All Debentures surrendered for the purpose of payment, redemption, exchange
or registration of transfer shall, if surrendered to the Company or any Paying
Agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be canceled by it, and no Debentures shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture. On request of the Company at the time of such surrender, the
Trustee shall deliver to the Company canceled Debentures held by the Trustee. In
the absence of such request the Trustee may dispose of canceled Debentures in
accordance with its standard procedures and deliver a certificate of disposition
to the Company. If the Company shall otherwise acquire any of the Debentures,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Debentures unless and until the same are
delivered to the Trustee for cancellation.

     SECTION 2.11 BENEFIT OF INDENTURE.

     Nothing in this Indenture or in the Debentures, express or implied, shall
give or be construed to give to any Person, other than the parties hereto and
the holders of the Debentures (and, with respect to the provisions of Article
XVI, the holders of the Senior Indebtedness) any legal or equitable right,
remedy or claim under or in respect of this Indenture, or under any covenant,
condition or provision herein contained; all such covenants, conditions and
provisions being for the sole benefit of the parties hereto and of the holders
of the Debentures (and, with respect to the provisions of Article XVI, the
holders of the Senior Indebtedness).

<PAGE>

     SECTION 2.12  AUTHENTICATION AGENT.

             (a)   So long as any of the Debentures remain Outstanding there may
     be an Authenticating Agent for any or all such Debentures, and the Trustee
     shall have the right to appoint such Authenticating Agent. Said
     Authenticating Agent shall be authorized to act on behalf of the Trustee to
     authenticate Debentures issued upon exchange, transfer or partial
     redemption thereof, and Debentures 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. All references in
     this Indenture to the authentication of Debentures by the Trustee shall be
     deemed to include authentication by an Authenticating Agent. Each
     Authenticating Agent shall be acceptable to the Company and shall be a
     corporation that has a combined capital and surplus, as most recently
     reported or determined by it, sufficient under the laws of any jurisdiction
     under which it is organized or in which it is doing business to conduct a
     trust business, and that is otherwise authorized under such laws to conduct
     such business and is subject to supervision or examination by federal or
     state authorities. If at any time any Authenticating Agent shall cease to
     be eligible in accordance with these provisions, it shall resign
     immediately.

             (b)   Any Authenticating Agent may at any time resign by giving
     written notice of resignation to the Trustee and to the Company. The
     Trustee may at any time (and upon request by the Company shall) terminate
     the agency of any Authenticating Agent by giving written notice of
     termination to such Authenticating Agent and to the Company. Upon
     resignation, termination or cessation of eligibility of any Authenticating
     Agent, the Trustee may appoint an eligible successor Authenticating Agent
     acceptable to the Company. Any successor Authenticating Agent, upon
     acceptance of its appointment hereunder, shall become vested with all the
     rights, powers and duties of its predecessor hereunder as if originally
     named as an Authenticating Agent pursuant hereto.

                                   ARTICLE III

                            REDEMPTION OF DEBENTURES

     SECTION 3.1   SPECIAL EVENT REDEMPTION.

     If, prior to June 30, 2007, a Special Event has occurred and is continuing,
then, notwithstanding Section 3.2(a) but subject to Section 3.2(b), the Company
shall have the right upon not less than 30 days' nor more than 60 days' notice
to the holders of the Debentures to redeem the Debentures, in whole but not in
part, for cash within 180 days following the occurrence of such Special Event
(the "180-Day Period") at a redemption price equal to One Hundred Three Percent
(103%) of the principal amount to be redeemed plus any accrued and unpaid
interest thereon to the date of such redemption (the "Redemption Price"),
provided that if at the time there is available to the Company the opportunity
to eliminate, within the 180-Day Period, a Tax Event by taking some ministerial
action (a "Ministerial Action"), such as filing a form or making an election, or
pursuing some other similar reasonable measure which has no adverse effect on
the Company, the Trustee, the Trust or the holders of the Trust Securities
issued by the Trust, the Company shall pursue such Ministerial Action in lieu of
redemption. The

<PAGE>

Redemption Price shall be paid prior to 12:00 noon, New York time, on the date
of such redemption or such earlier time as the Company determines, provided that
the Company shall deposit with the Trustee an amount sufficient to pay the
Redemption Price by 10:00 a.m., New York time, on the date such Redemption Price
is to be paid.

     SECTION 3.2   OPTIONAL REDEMPTION BY COMPANY.

             (a)   Subject to the provisions of Section 3.2(b), except as
     otherwise may be specified in this Indenture, the Company shall have the
     right to redeem the Debentures, in whole or in part, from time to time, on
     any Interest Payment Date after June 30, 2007 (each a "Redemption Date"),
     at a Redemption Price equal to 100% of the principal amount to be redeemed
     plus any accrued and unpaid interest thereon to the Redemption Date. Any
     redemption pursuant to this Section 3.2(a) shall be made upon not less than
     30 days' nor more than 60 days' notice to the holder of the Debentures, at
     the Redemption Price. If the Debentures are only partially redeemed
     pursuant to this Section 3.2, the Debentures shall be redeemed pro rata or
     by lot or in such other manner as the Trustee shall in good faith deem
     appropriate and fair in its sole discretion. The Redemption Price shall be
     paid prior to 12:00 noon, New York time, on the Redemption Date or at such
     earlier time as the Company determines provided that the Company shall
     deposit with the Trustee an amount sufficient to pay the Redemption Price
     by 10:00 a.m., New York time, on the Redemption Date.

             (b)   Any redemption of Debentures pursuant to Section 3.1 or
     Section 3.2 shall be subject to the Company obtaining the prior approval of
     the Federal Reserve, if such approval is then required under the applicable
     capital guidelines, policies or regulations of the Federal Reserve, and any
     other required regulatory approvals.

             (c)   If a partial redemption of the Debentures would result in the
     delisting of the Trust Preferred Securities issued by the Trust from any
     national securities exchange or other organization on which the Trust
     Preferred Securities are then listed, if any, the Company shall not be
     permitted to effect such partial redemption and may only redeem the
     Debentures in whole.

             (d)   Subject to the provisions of this Section 3.2, the Company
     shall have the right to redeem Debentures in a principal amount equal to
     the Liquidation Amount (as defined in the Trust Agreement) of any Trust
     Preferred Securities purchased and beneficially owned by the Company, plus
     an additional principal amount of Debentures equal to the Liquidation
     Amount (as defined in the Trust Agreement) of that number of Common
     Securities that bears the same proportion to the total number of Common
     Securities then outstanding as the number of Trust Preferred Securities to
     be redeemed bears to the total number of Trust Preferred Securities then
     outstanding. Such Debentures shall be redeemed pursuant to this Section
     3.2(d) only in exchange for and upon surrender by the Company to the
     Property Trustee of the Trust Preferred Securities and a proportionate
     amount of Common Securities, whereupon the Property Trustee shall cancel
     the Trust Preferred Securities and Common Securities so surrendered and a
     Like Amount (as defined in the Trust Agreement) of Debentures shall be
     extinguished by the Trustee and shall no longer be deemed Outstanding.

<PAGE>

     SECTION 3.3   NOTICE OF REDEMPTION.

     In case the Company shall desire to exercise such right to redeem all or,
     as the case may be, a portion of the Debentures in accordance with the
     right reserved so to do, the Company shall, or shall cause the Trustee to
     upon receipt of at least 45 days' written notice from the Company (which
     notice shall, in the event of a partial redemption, include a
     representation to the effect that such partial redemption will not result
     in the delisting of the Trust Preferred Securities as described in Section
     3.2(c) above), give notice of such redemption to holders of the Debentures
     to be redeemed by mailing, first class postage prepaid, a notice of such
     redemption not less than 30 days and not more than 180 days before the date
     fixed for redemption to such holders at their last addresses as they shall
     appear upon the Debenture Register unless a shorter period is specified in
     the Debentures to be redeemed. Any notice that is mailed in the manner
     herein provided shall be conclusively presumed to have been duly given,
     whether or not the registered holder receives the notice. In any case,
     failure duly to give such notice to the holder of any Debenture designated
     for redemption in whole or in part, or any defect in the notice, shall not
     affect the validity of the proceedings for the redemption of any other
     Debentures. In the case of any redemption of Debentures prior to the
     expiration of any restriction on such redemption provided in the terms of
     such Debentures or elsewhere in this Indenture, the Company shall furnish
     the Trustee with an Officers' Certificate evidencing compliance with any
     such restriction. Each such notice of redemption shall specify the date
     fixed for redemption and the Redemption Price and shall state that payment
     of the Redemption Price shall be made at the office or agency of the
     Company or at the Corporate Trust Office of the Trustee, upon presentation
     and surrender of such Debentures, that interest accrued to the date fixed
     for redemption shall be paid as specified in said notice and that from and
     after said date interest shall cease to accrue. If less than all the
     Debentures are to be redeemed, the notice to the holders of the Debentures
     shall specify the particular Debentures to be redeemed. If the Debentures
     are to be redeemed in part only, the notice shall state the portion of the
     principal amount thereof to be redeemed and shall state that on and after
     the redemption date, upon surrender of such Debenture, a new Debenture or
     Debentures in principal amount equal to the unredeemed portion thereof will
     be issued to the holder. If less than all the Debentures are to be
     redeemed, the Company shall give the Trustee at least 45 days' notice in
     advance of the date fixed for redemption as to the aggregate principal
     amount of Debentures to be redeemed, and thereupon the Trustee shall
     select, pro rata or by lot or in such other manner as it shall in good
     faith deem appropriate and fair in its sole discretion, the portion or
     portions (equal to $1,000 or any integral multiple thereof) of the
     Debentures to be redeemed and shall thereafter promptly notify the Company
     in writing of the numbers of the Debentures to be redeemed, in whole or in
     part. The Company may, if and whenever it shall so elect pursuant to the
     terms hereof, by delivery of instructions signed on its behalf by its Chief
     Executive Officer, its President or any Vice President, instruct the
     Trustee or any Paying Agent to call all or any part of the Debentures for
     redemption and to give notice of redemption in the manner set forth in this
     Section 3.3, such notice to be in the name of the Company or its own name
     as the Trustee or such Paying Agent may deem advisable. In any case in
     which notice of redemption is to be given by the Trustee or any such Paying
     Agent, the Company shall deliver or cause to be delivered to, or permit to
     remain with, the Trustee or such Paying

<PAGE>

     Agent, as the case may be, such Debenture Register, transfer books or other
     records, or suitable copies or extracts therefrom, sufficient to enable the
     Trustee or such Paying Agent to give any notice by mail that may be
     required under the provisions of this Section 3.3.

     SECTION 3.4   PAYMENT UPON REDEMPTION.

             (a)   If the giving of notice of redemption shall have been
     completed as above provided, the Debentures or portions of Debentures to be
     redeemed specified in such notice shall become due and payable on the date
     and at the place stated in such notice at the applicable Redemption Price,
     and interest on such Debentures or portions of Debentures shall cease to
     accrue on and after the date fixed for redemption, unless the Company shall
     default in the payment of such Redemption Price with respect to any such
     Debenture or portion thereof. On presentation and surrender of such
     Debentures on or after the date fixed for redemption at the place of
     payment specified in the notice, said Debentures shall be paid and redeemed
     at the Redemption Price (but if the date fixed for redemption is an
     Interest Payment Date, the interest installment payable on such date shall
     be payable to the registered holder at the close of business on the
     applicable record date).

             (b)   Upon presentation of any Debenture that is to be redeemed in
     part only, the Company shall execute and the Trustee or the Authenticating
     Agent, upon written order of the Company, shall authenticate and the office
     or agency where the Debenture is presented shall deliver to the holder
     thereof, at the expense of the Company, a new Debenture of authorized
     denomination in principal amount equal to the unredeemed portion of the
     Debenture so presented.

     SECTION 3.5   NO SINKING FUND.

     The Debentures are not entitled to the benefit of any sinking fund.

                                   ARTICLE IV

                      EXTENSION OF INTEREST PAYMENT PERIOD

     SECTION 4.1   EXTENSION OF INTEREST PAYMENT PERIOD.

     The Company shall have the right, at any time and from time to time during
the term of the Debentures so long as no Event of Default has occurred and is
continuing, to defer payments of interest by extending the interest payment
period of such Debentures for a period not exceeding 20 consecutive quarters
(the "Extended Interest Payment Period"), during which Extended Interest Payment
Period no interest shall be due and payable; provided that no Extended Interest
Payment Period may extend beyond the Maturity Date or end on a date other than
an Interest Payment Date. To the extent permitted by applicable law, interest,
the payment of which has been deferred because of the extension of the interest
payment period pursuant to this Section 4.1, shall bear interest thereon at the
Floating Interest Rate in effect for each period compounded quarterly for each
quarter of the Extended Interest Payment Period ("Compounded Interest"). At the
end of the Extended Interest Payment Period, the Company shall calculate (and

<PAGE>

deliver such calculation to the Trustee) and pay all interest accrued and unpaid
on the Debentures, including any Additional Interest and Compounded Interest
(together, "Deferred Interest") that shall be payable to the holders of the
Debentures in whose names the Debentures are registered in the Debenture
Register on the first record date after the end of the Extended Interest Payment
Period. Before the termination of any Extended Interest Payment Period, the
Company may further extend such period so long as no Event of Default has
occurred and is continuing, provided that such period together with all such
further extensions thereof shall not exceed 20 consecutive quarters, or extend
beyond the Maturity Date of the Debentures or end on a date other than an
Interest Payment Date. Upon the termination of any Extended Interest Payment
Period and upon the payment of all Deferred Interest then due, the Company may
commence a new Extended Interest Payment Period, subject to the foregoing
requirements. No interest shall be due and payable during an Extended Interest
Payment Period, except at the end thereof, but the Company may prepay at any
time all or any portion of the interest accrued during an Extended Interest
Payment Period.

     SECTION 4.2   NOTICE OF EXTENSION.

             (a)   If the Property Trustee is the only registered holder of the
     Debentures at the time the Company selects an Extended Interest Payment
     Period, the Company shall give written notice to the Administrative
     Trustees, the Property Trustee and the Trustee of its selection of such
     Extended Interest Payment Period two Business Days before the earlier of
     (i) the next succeeding date on which Distributions on the Trust Securities
     issued by the Trust are payable; or (ii) the date the Trust is required to
     give notice of the record date, or the date such Distributions are payable,
     to any applicable self-regulatory organization or to holders of the Trust
     Preferred Securities issued by the Trust.

             (b)   If the Property Trustee is not the only holder of the
     Debentures at the time the Company selects an Extended Interest Payment
     Period, the Company shall give the holders of the Debentures and the
     Trustee written notice of its selection of such Extended Interest Payment
     Period at least two Business Days before the earlier of (i) the next
     succeeding Interest Payment Date; or (ii) the date the Company is required
     to give notice of the record or payment date of such interest payment to
     any applicable self-regulatory organization, if any, or to holders of the
     Debentures.

             (c)   The quarter in which any notice is given pursuant to
     paragraphs (a) or (b) of this Section 4.2 shall be counted as one of the 20
     quarters permitted in the maximum Extended Interest Payment Period
     permitted under Section 4.1.

     SECTION 4.3   LIMITATION ON TRANSACTIONS.

     If (i) the Company shall exercise its right to defer payment of interest as
provided in Section 4.1; or (ii) there shall have occurred and be continuing any
Event of Default, then

             (a)   the Company shall not, and will not permit any Subsidiary to,
     declare or pay any dividends on, make any distributions with respect to, or
     redeem, purchase, acquire or make a liquidation payment with respect to,
     any of its capital stock (other than (1) dividends or distributions in
     shares of, or options, warrants or rights to subscribe for

<PAGE>

     or purchase shares of, common stock of the Company or such Subsidiary, (2)
     any declaration of a dividend in connection with the implementation of a
     shareholder's rights plan, or the issuance of stock under any such plan in
     the future, or the redemption or repurchase of any such rights pursuant
     thereto, (3) purchases of common stock of the Company related to the
     issuance of such common stock under any of the Company's employee benefit
     plans for its directors, officers or employees, (4) as a result of a
     reclassification of any class or series of the Company's capital stock
     solely into another class or series of the Company's capital stock, or (5)
     declarations or payments of dividends or distributions payable by a
     Subsidiary of the Company to the Company or to any of the Company's
     Subsidiaries);

             (b)   the Company shall not, and will not permit any Subsidiary to,
     make any payment of interest, principal or premium, if any, or repay,
     repurchase or redeem any debt securities issued by the Company which rank
     pari passu with or junior to the Debentures;

             (c)   the Company shall not make any guarantee payments with
     respect to any guarantee by the Company of the debt securities of any
     Subsidiary of the Company if such guarantee ranks pari passu with or junior
     to the Debentures; provided, however, that notwithstanding the foregoing
     the Company may make payments pursuant to its obligations under the Trust
     Preferred Securities Guarantee; and

             (d)   the Company shall not redeem, purchase or acquire less than
     all of the Outstanding Debentures or any of the Trust Preferred Securities.

                                    ARTICLE V

                       PARTICULAR COVENANTS OF THE COMPANY

     SECTION 5.1   PAYMENT OF PRINCIPAL AND INTEREST.

     The Company shall duly and punctually pay or cause to be paid the principal
of and interest on the Debentures at the time and place and in the manner
provided herein.

     SECTION 5.2   MAINTENANCE OF AGENCY.

     So long as any of the Debentures remain Outstanding, the Company shall
maintain, or shall cause to be maintained, an office or agency in Wilmington,
Delaware, and at such other location or locations as may be designated as
provided in this Section 5.2, where (i) Debentures may be presented for payment;
(ii) Debentures may be presented as hereinabove authorized for registration of
transfer and exchange; and (iii) notices and demands to or upon the Company in
respect of the Debentures and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its Chief Executive Officer, President or an
Executive Vice President and delivered to the Trustee, designate some other
office or agency for such purposes or any of them. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and
the Company hereby appoints the

<PAGE>

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

     SECTION 5.3   PAYING AGENTS.

             (a)   The Trustee shall be the initial Paying Agent. If the Company
     shall appoint one or more Paying Agents for the Debentures, other than the
     Trustee, the Company shall cause each such Paying Agent to execute and
     deliver to the Trustee an instrument in which such agent shall agree with
     the Trustee, subject to the provisions of this Section 5.3:

             (i)   that it shall hold all sums held by it as such agent for the
                   payment of the principal of or interest on the Debentures
                   (whether such sums have been paid to it by the Company or by
                   any other obligor of such Debentures) in trust for the
                   benefit of the Persons entitled thereto;

             (ii)  that it shall give the Trustee notice of any failure by the
                   Company (or by any other obligor of such Debentures) to make
                   any payment of the principal of or interest on the Debentures
                   when the same shall be due and payable;

             (iii) that it shall, at any time during the continuance of any
                   failure referred to in the preceding paragraph (a)(ii) above,
                   upon the written request of the Trustee, forthwith pay to the
                   Trustee all sums so held in trust by such Paying Agent; and

             (iv)  that it shall perform all other duties of Paying Agent as set
                   forth in this Indenture.

             (b)   If the Company shall act as its own Paying Agent with respect
     to the Debentures, it shall on or before each due date of the principal of
     or interest on such Debentures, set aside, segregate and hold in trust for
     the benefit of the Persons entitled thereto a sum sufficient to pay such
     principal or interest so becoming due on Debentures until such sums shall
     be paid to such Persons or otherwise disposed of as herein provided and
     shall promptly notify the Trustee of such action, or any failure (by it or
     any other obligor on such Debentures) to take such action. Whenever the
     Company shall have one or more Paying Agents for the Debentures, it shall,
     prior to each due date of the principal of or interest on any Debentures,
     deposit with the Paying Agent a sum sufficient to pay the principal or
     interest so becoming due, such sum to be held in trust for the benefit of

<PAGE>

     the Persons entitled to such principal or interest, and (unless such Paying
     Agent is the Trustee) the Company shall promptly notify the Trustee of this
     action or failure so to act.

             (c)   Notwithstanding anything in this Section 5.3 to the contrary,
     (i) the agreement to hold sums in trust as provided in this Section 5.3 is
     subject to the provisions of Section 13.3 and 13.4; and (ii) the Company
     may at any time, for the purpose of obtaining the satisfaction and
     discharge of this Indenture or for any other purpose, pay, or direct any
     Paying Agent to pay, to the Trustee all sums held in trust by the Company
     or such Paying Agent, such sums to be held by the Trustee upon the same
     terms and conditions as those upon which such sums were held by the Company
     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 money.

     SECTION 5.4   APPOINTMENT TO FILL VACANCY IN OFFICE OF TRUSTEE.

     The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, shall appoint, in the manner provided in Section 9.11, a Trustee, so
that there shall at all times be a Trustee hereunder. Section 5.5 Compliance
with Consolidation Provisions.

     SECTION 5.5   COMPLIANCE WITH CONSOLIDATION PROVISIONS

     The Company shall not, while any of the Debentures remain Outstanding,
consolidate with, or merge into, or sell or convey all or substantially all of
its property to any other company unless the provisions of Article XII hereof
are complied with.

     SECTION 5.6   LIMITATION ON TRANSACTIONS.

     If Debentures are issued to the Trust or a trustee of the Trust in
connection with the issuance of Trust Securities by the Trust and (i) there
shall have occurred any event that would constitute an Event of Default; (ii)
the Company shall be in default with respect to any of its obligations under the
Trust Preferred Securities Guarantee relating to the Trust; or (iii) the Company
shall have given notice of its election to defer payments of interest on such
Debentures by extending the interest payment period as provided in this
Indenture and such period, or any extension thereof, shall be continuing, then

             (a)   the Company shall not, and will not permit any Subsidiary to,
     declare or pay any dividends on, make any distributions with respect to, or
     redeem, purchase, acquire or make a liquidation payment with respect to,
     any of its capital stock (other than (1) dividends or distributions in
     shares of, or options, warrants or rights to subscribe for or purchase
     shares of, common stock of the Company or such Subsidiary, (2) any
     declaration of a dividend in connection with the implementation of a
     shareholder's rights plan, or the issuance of stock under any such plan in
     the future, or the redemption or repurchase of any such rights pursuant
     thereto, (3) purchases of common stock of the Company related to the
     issuance of such common stock under any of the Company's employee benefit
     plans for its directors, officers or employees, (4) as a result of a
     reclassification of any class or series of the Company's capital stock
     solely into another class or series of the Company's capital stock, or (5)
     declarations or payments of

<PAGE>

     dividends or distributions payable by a Subsidiary of the Company to the
     Company or to any of the Company's Subsidiaries);

             (b)   the Company shall not, and will not permit any Subsidiary to,
     make any payment of interest, principal or premium, if any, or repay,
     repurchase or redeem any debt securities issued by the Company which rank
     pari passu with or junior to the Debentures;

             (c)   the Company shall not make any guarantee payments with
     respect to any guarantee by the Company of the debt securities of any
     Subsidiary of the Company if such guarantee ranks pari passu with or junior
     in interest to the Debentures; provided, however, that the Company may make
     payments pursuant to its obligations under the Trust Preferred Securities
     Guarantee; and

             (d)   the Company shall not redeem, purchase or acquire less than
     all of the Outstanding Debentures or any of the Trust Preferred Securities.

     SECTION 5.7   COVENANTS AS TO THE TRUST.

     For so long as the Trust Securities of the Trust remain outstanding, the
Company shall (i) maintain 100% direct or indirect ownership of the Common
Securities of the Trust; provided, however, that any permitted successor of the
Company under this Indenture may succeed to the Company's ownership of the
Common Securities; (ii) not voluntarily terminate, wind up or liquidate the
Trust, except upon prior approval of the Federal Reserve if then so required
under applicable capital guidelines, policies or regulations of the Federal
Reserve; and (iii) use its reasonable efforts to cause the Trust (a) to remain a
business trust (and to avoid involuntary dissolution, termination, winding up or
liquidation), except in connection with a distribution of Debentures, the
redemption of all of the Trust Securities of the Trust or certain mergers,
consolidations or amalgamations, each as permitted by the Trust Agreement and
(b) to otherwise continue not to be treated as an association taxable as a
corporation or partnership for United States federal income tax purposes. In
connection with the distribution of the Debentures to the holders of the Trust
Preferred Securities issued by the Trust upon a Dissolution Event, the Company
shall use its reasonable efforts to list such Debentures on any applicable stock
exchange or self-regulatory organization as the Trust Preferred Securities are
then listed, if any.

     SECTION 5.8   COVENANTS AS TO PURCHASES.

     Except upon the exercise by the Company of its right to redeem the
Debentures pursuant to Section 3.1 upon the occurrence and continuation of a
Special Event, the Company shall not purchase any Debentures, in whole or in
part, held by the Property Trustee on behalf of the Trust prior to June 30,
2007.

     SECTION 5.9   WAIVER OF USURY, STAY OR EXTENSION LAWS.

     The Company shall 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 hereafter in force, which may
affect the covenants or the performances of this Indenture, and the Company (to
the extent that it may lawfully do so) hereby expressly waives

<PAGE>

all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

                                   ARTICLE VI

                       DEBENTUREHOLDERS' LISTS AND REPORTS
                         BY THE COMPANY AND THE TRUSTEE

     SECTION 6.1   COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
DEBENTUREHOLDERS.

     The Company shall furnish or cause to be furnished to the Trustee (a) on a
quarterly basis on each regular record date (as described in Section 2.5) a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the holders of the Debentures as of such regular record date,
provided that the Company shall not be obligated to furnish or cause to furnish
such list at any time that the list shall not differ in any respect from the
most recent list furnished to the Trustee by the Company (in the event the
Company fails to provide such list on a quarterly basis, the Trustee shall be
entitled to rely on the most recent list provided by the Company); and (b) at
such other times as the Trustee may request in writing within 30 days after the
receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is furnished;
provided, however, that, in either case, no such list need be furnished if the
Trustee shall be the Debenture Registrar.

     SECTION 6.2   PRESERVATION OF INFORMATION COMMUNICATIONS WITH
DEBENTUREHOLDERS.

             (a)   The Trustee shall preserve, in as current a form as is
     reasonably practicable, all information as to the names and addresses of
     the holders of Debentures contained in the most recent list furnished to it
     as provided in Section 6.1 and as to the names and addresses of holders of
     Debentures received by the Trustee in its capacity as Debenture Registrar
     (if acting in such capacity).

             (b)   The Trustee may destroy any list furnished to it as provided
     in Section 6.1 upon receipt of a new list so furnished.

             (c)   Debentureholders may communicate with other Debentureholders
     with respect to their rights under this Indenture or under the Debentures,
     subject to Section 312(b) of the Trust Indenture Act if applicable.

     SECTION 6.3   REPORTS BY THE COMPANY.

             (a)   The Company covenants and agrees to transmit to the Trustee
     such additional information, documents and reports with respect to
     compliance by the Company with the conditions and covenants provided for in
     this Indenture as may be required from time to time by such rules and
     regulations, including Section 314(a)(4) of the Trust Indenture Act, if
     applicable.

<PAGE>

             (b)   The Company covenants and agrees to transmit to the Trustee
     in the same form as filed with the Federal Reserve (i) its annual audited
     consolidated financial statements within 90 days following the end of its
     fiscal year, (ii) its quarterly consolidated financial statements within 45
     days after the end of the first three fiscal quarters of each fiscal year
     (each a "Quarter"), and (iii) the following financial data for each
     Quarter, within 45 days after the end of each Quarter, and for each fiscal
     year, within 90 days after the end of each fiscal year:

                   CAPITAL: ratio of "Tier 1 Capital" to risk weighted assets;

                   ASSET QUALITY: ratio of nonperforming assets to loans and
             other real estate owned, ratio of reserves to nonperforming loans,
             and ratio of net charge-offs to loans;

                   EARNINGS: return on assets, net interest margin, and
             efficiency ratio; and

                   LIQUIDITY: ratio of loans to assets, ratio of loans to
             deposits, total assets, and net income.

     SECTION 6.4   REPORTS BY THE TRUSTEE.

             (a)   On or before July 15 in each year in which any of the
     Debentures are Outstanding, the Trustee shall transmit by mail, first class
     postage prepaid, to the Debentureholders, as their names and addresses
     appear upon the Debenture Register, a brief report dated as of the
     preceding May 15, if and to the extent required under Section 313(a) of the
     Trust Indenture Act, if applicable (it being understood that no such report
     shall be required if none of the events set forth in Section 313(a) of the
     Trust Indenture Act has occurred during the period to which such report
     would relate).

             (b)   The Trustee shall comply with Sections 313(b) and 313(c) of
     the Trust Indenture Act, if applicable.

             (c)   A copy of each such report shall, at the time of such
     transmission to Debentureholders, be filed by the Trustee with the Company,
     with each stock exchange or applicable self-regulatory organization upon
     which any Debentures are listed (if so listed) and also with the
     Commission. The Company agrees to notify the Trustee when any Debentures
     become listed on any stock exchange or other applicable self-regulatory
     organization.

             (d)   If at any time following the date hereof the Property Trustee
     no longer holds the Debentures, the Trustee covenants and agrees to
     transmit by mail, first class postage prepaid, to the Debentureholders, as
     their names and addresses appear upon the Debenture Register, any
     information, documents and reports required to be transmitted to the
     Trustee pursuant to Section 6.3 as soon as practicable after the receipt of
     such information from the Company.

<PAGE>

                                   ARTICLE VII

                  REMEDIES OF THE TRUSTEE AND DEBENTUREHOLDERS
                               ON EVENT OF DEFAULT

     SECTION 7.1   EVENTS OF DEFAULT.

             (a)   Whenever used herein with respect to the Debentures, "Event
     of Default" means any one or more of the following events that has occurred
     and is continuing:

             (i)   the Company defaults in the payment of any installment of
                   interest upon any of the Debentures, as and when the same
                   shall become due and payable, and continuance of such default
                   for a period of 30 days; provided, however, that a valid
                   extension of an interest payment period by the Company in
                   accordance with the terms of this Indenture shall not
                   constitute a default in the payment of interest for this
                   purpose;

             (ii)  the Company defaults in the payment of the principal on the
                   Debentures as and when the same shall become due and payable
                   whether at maturity, upon redemption, by declaration or
                   otherwise;

             (iii) the Company fails to observe or perform any other of its
                   covenants or agreements with respect to the Debentures for a
                   period of 90 days after the date on which written notice of
                   such failure, requiring the same to be remedied and stating
                   that such notice is a "Notice of Default" hereunder, shall
                   have been given to the Company by the Trustee, by registered
                   or certified mail, or to the Company and the Trustee by the
                   holders of at least 25% in principal amount of the Debentures
                   at the time Outstanding;

             (iv)  the Company pursuant to or within the meaning of any
                   Bankruptcy Law (1) commences a voluntary case; (2) consents
                   to the entry of an order for relief against it in an
                   involuntary case; (3) consents to the appointment of a
                   Custodian of it or for all or substantially all of its
                   property; or (4) makes a general assignment for the benefit
                   of its creditors;

             (v)   a court of competent jurisdiction enters an order under any
                   Bankruptcy Law that (1) is for relief against the Company in
                   an involuntary case; (2) appoints a Custodian of the Company
                   for all or substantially all of its property; or (3) orders
                   the liquidation of the Company, and the order or decree
                   remains unstayed and in effect for 90 days; or

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

<PAGE>

             (b)   In each and every such case referred to in items (i) through
     (vi) of Section 7.1(a), unless the principal of all the Debentures shall
     have already become due and payable, either the Trustee or the holders of
     not less than 25% in aggregate principal amount of the Debentures then
     Outstanding hereunder, by notice in writing to the Company (and to the
     Trustee if given by such Debentureholders) may declare the principal of all
     the Debentures to be due and payable immediately, and upon any such
     declaration the same shall become and shall be immediately due and payable,
     notwithstanding anything contained in this Indenture or in the Debentures.

             (c)   At any time after the principal of the Debentures shall have
     been so declared due and payable, and before any judgment or decree for the
     payment of the money due shall have been obtained or entered as hereinafter
     provided, the holders of a majority in aggregate principal amount of the
     Debentures then Outstanding hereunder, by written notice to the Company and
     the Trustee, may rescind and annul such declaration and its consequences
     if: (i) the Company has paid or deposited with the Trustee a sum sufficient
     to pay all matured installments of interest upon all the Debentures and the
     principal of any and all Debentures that shall have become due otherwise
     than by acceleration (with interest upon such principal, and, to the extent
     that such payment is enforceable under applicable law, upon overdue
     installments of interest, at the rate per annum expressed in the Debentures
     to the date of such payment or deposit) and the amount payable to the
     Trustee under Section 9.7; and (ii) any and all Events of Default under
     this Indenture, other than the nonpayment of principal on Debentures that
     shall not have become due by their terms, shall have been remedied or
     waived as provided in Section 7.6. No such rescission and annulment shall
     extend to or shall affect any subsequent default or impair any right
     consequent thereon.

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

     SECTION 7.2   COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.

             (a)   The Company covenants that (i) in case it shall default in
     the payment of any installment of interest on any of the Debentures, and
     such default shall have continued for a period of 90 Business Days; or (ii)
     in case it shall default in the payment of the principal of any of the
     Debentures when the same shall have become due and payable, whether upon
     maturity of the Debentures or upon redemption or upon declaration or
     otherwise, then, upon demand of the Trustee, the Company shall pay to the
     Trustee, for the benefit of the holders of the Debentures, the whole amount
     that then shall have become due and payable on all such Debentures for
     principal or interest, or both, as the case may be, with interest upon the
     overdue principal and (to the extent that payment of such interest is
     enforceable under applicable law; and, if the Debentures are held by the
     Trust or a trustee of the Trust, without duplication of any other amounts
     paid by the

<PAGE>

     Trust or trustee in respect thereof) upon overdue installments of interest
     at the rate per annum expressed in the Debentures; and, in addition
     thereto, such further amount as shall be sufficient to cover the costs and
     expenses of collection, and the amount payable to the Trustee under Section
     9.7.

             (b)   If the Company shall fail to pay such amounts set forth in
     section 7.2(a) forthwith upon such demand, the Trustee, in its own name and
     as trustee of an express trust, shall be entitled and empowered to
     institute any action or proceedings at law or in equity for the collection
     of the sums so due and unpaid, and may prosecute any such action or
     proceeding to judgment or final decree, and may enforce any such judgment
     or final decree against the Company or other obligor upon the Debentures
     and collect any money adjudged or decreed to be payable in the manner
     provided by law out of the property of the Company or other obligor upon
     the Debentures, wherever situated.

             (c)   In case of any receivership, insolvency, liquidation,
     bankruptcy, reorganization, readjustment, arrangement, composition or
     judicial proceedings affecting the Company or the creditors or property of
     either, the Trustee shall have power to intervene in such proceedings and
     take any action therein that may be permitted by the court and shall
     (except as may be otherwise provided by law) be entitled to file such
     proofs of claim and other papers and documents as may be necessary or
     advisable in order to have the claims of the Trustee and of the holders of
     the Debentures allowed for the entire amount due and payable by the Company
     under this Indenture at the date of institution of such proceedings and for
     any additional amount that may become due and payable by the Company after
     such date, and to collect and receive any money or other property payable
     or deliverable on any such claim, and to distribute the same after the
     deduction of the amount payable to the Trustee under Section 9.7; and any
     receiver, assignee or trustee in bankruptcy or reorganization is hereby
     authorized by each of the holders of the Debentures to make such payments
     to the Trustee, and, in the event that the Trustee shall consent to the
     making of such payments directly to such Debentureholders, to pay to the
     Trustee any amount due it under Section 9.7.

             (d)   All rights of action and of asserting claims under this
     Indenture, or under any of the terms established with respect to the
     Debentures, may be enforced by the Trustee without the possession of any of
     such Debentures, or the production thereof at any trial or other proceeding
     relative thereto, and any such suit or proceeding instituted by the Trustee
     shall be brought in its own name as trustee of an express trust, and any
     recovery of judgment shall, after provision for payment to the Trustee of
     any amounts due under Section 9.7, be for the ratable benefit of the
     holders of the Debentures. If an Event of Default hereunder occurs and is
     continuing, the Trustee may in its discretion proceed to protect and
     enforce the rights vested in it by this Indenture by such appropriate
     judicial proceedings as the Trustee shall in good faith deem most effectual
     to protect and enforce any of such rights, either at law or in equity or in
     bankruptcy or otherwise, whether for the specific enforcement of any
     covenant or agreement contained in this Indenture or in aid of the exercise
     of any power granted in this Indenture, or to enforce any other legal or
     equitable right vested in the Trustee by this Indenture or by law. Nothing
     contained herein shall be deemed to authorize the Trustee to authorize or
     consent to or accept or adopt on behalf of any Debentureholder any plan of
     reorganization,

<PAGE>

     arrangement, adjustment or composition affecting the Debentures or the
     rights of any holder thereof or to authorize the Trustee to vote in respect
     of the claim of any Debentureholder in any such proceeding.

     SECTION 7.3   APPLICATION OF MONEY COLLECTED.

     Any money or other assets collected by the Trustee pursuant to this Article
VII with respect to the Debentures shall be applied in the following order, at
the date or dates fixed by the Trustee and, in case of the distribution of such
money or other assets on account of principal or interest, upon presentation of
the Debentures, and notation thereon the payment, if only partially paid, and
upon surrender thereof if fully paid:

     FIRST: To the payment of reasonable costs and expenses of collection and of
all amounts payable to the Trustee under Section 9.7;

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

     THIRD: To the payment of the amounts then due and unpaid upon the
Debentures for principal and interest, 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 amounts due and payable on such Debentures for
principal and interest, respectively.

     SECTION 7.4   LIMITATION ON SUITS.

             (a)   Except as set forth in this Indenture, no holder of any
     Debenture shall have any right by virtue or by availing of any provision of
     this Indenture to institute any suit, action or proceeding in equity or at
     law upon or under or with respect to this Indenture or for the appointment
     of a receiver or trustee, or for any other remedy hereunder, unless (i)
     such holder previously shall have given to the Trustee written notice of an
     Event of Default and of the continuance thereof with respect to the
     Debentures specifying such Event of Default, as hereinbefore provided; (ii)
     the holders of not less than 25% in aggregate principal amount of the
     Debentures then Outstanding shall have made written request upon the
     Trustee to institute such action, suit or proceeding in its own name as
     trustee hereunder; (iii) such holder or holders shall have offered to the
     Trustee such reasonable security or indemnity as it may require against the
     costs, expenses and liabilities to be incurred therein or thereby; and (iv)
     the Trustee for 60 days after its receipt of such notice, request and offer
     of security or indemnity, shall have failed to institute any such action,
     suit or proceeding, and during such 60 day period, the holders of a
     majority in principal amount of the Debentures do not give the Trustee a
     direction inconsistent with the request.

             (b)   Notwithstanding anything contained herein to the contrary or
     any other provisions of this Indenture, the right of any holder of the
     Debentures to receive payment of the principal of and interest on the
     Debentures, as therein provided, on or after the respective due dates
     expressed in such Debenture (or in the case of redemption, on the
     redemption date), or to institute suit for the enforcement of any such
     payment on or after such respective dates or redemption date, shall not be
     impaired or affected without the

<PAGE>

     consent of such holder and by accepting a Debenture hereunder it is
     expressly understood, intended and covenanted by the taker and holder of
     every Debenture with every other such taker and holder and the Trustee,
     that no one or more holders of the Debentures shall have any right in any
     manner whatsoever by virtue or by availing of any provision of this
     Indenture to affect, disturb or prejudice the rights of the holders of any
     other of such Debentures, or to obtain or seek to obtain priority over or
     preference to any other such holder, or to enforce any right under this
     Indenture, except in the manner herein provided and for the equal, ratable
     and common benefit of all holders of Debentures. For the protection and
     enforcement of the provisions of this Section 7.4, each and every
     Debentureholder and the Trustee shall be entitled to such relief as can be
     given either at law or in equity.

     SECTION 7.5   RIGHTS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER.

             (a)   Except as otherwise expressly provided herein, all powers and
     remedies given by this Article VII to the Trustee or to the
     Debentureholders shall, to the extent permitted by law, be deemed
     cumulative and not exclusive of any other powers and remedies available to
     the Trustee or the holders of the Debentures, by judicial proceedings or
     otherwise, to enforce the performance or observance of the covenants and
     agreements contained in this Indenture or otherwise established with
     respect to such Debentures.

             (b)   No delay or omission of the Trustee or of any holder of any
     of the Debentures to exercise any right or power accruing upon any Event of
     Default occurring and continuing as aforesaid shall impair any such right
     or power, or shall be construed to be a waiver of any such default or an
     acquiescence therein; and, subject to the provisions of Section 7.4, every
     power and remedy given by this Article VII or by law to the Trustee or the
     Debentureholders may be exercised from time to time, and as often as shall
     be deemed expedient, by the Trustee or by the Debentureholders.

     SECTION 7.6   CONTROL BY DEBENTUREHOLDERS.

     The holders of a majority in aggregate principal amount of the Debentures
at the time Outstanding, determined in accordance with Article X, 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; provided, however, that such direction shall not be in conflict
with any rule of law or with this Indenture. Subject to the provisions of
Section 9.1(b), the Trustee shall have the right to decline to follow any such
direction if the Trustee in good faith shall, by a Responsible Officer or
Officers of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability. The holders of a majority in aggregate
principal amount of the Debentures at the time Outstanding affected thereby,
determined in accordance with Article X, may on behalf of the holders of all of
the Debentures waive any past default in the performance of any of the covenants
contained herein and its consequences, except (i) a default in the payment of
the principal of or interest on, any of the Debentures as and when the same
shall become due by the terms of such Debentures otherwise than by acceleration
(unless such default has been cured and a sum sufficient to pay all matured
installments of interest and principal has been deposited with the Trustee (in
accordance

<PAGE>

with Section 7.1(c)); (ii) a default in the covenants contained in Section 5.7;
or (iii) in respect of a covenant or provision hereof which cannot be modified
or amended without the consent of the holder of each Outstanding Debenture
affected; provided, however, that if the Debentures are held by the Trust or a
trustee of the Trust, such waiver or modification to such waiver shall not be
effective until the holders of a majority in liquidation preference of Trust
Securities shall have consented to such waiver or modification to such waiver;
provided further, that if the consent of the holder of each Outstanding
Debenture is required, such waiver shall not be effective until each holder of
the Trust Securities of the Trust shall have consented to such waiver. Upon any
such waiver, the default covered thereby shall be deemed to be cured for all
purposes of this Indenture and the Company, the Trustee and the holders of the
Debentures shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.

     SECTION 7.7   UNDERTAKING TO PAY COSTS.

     All parties to this Indenture agree, and each holder of any Debentures by
such holder's acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
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 7.7 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Debentureholder, or group of
Debentureholders holding more than 10% in aggregate principal amount of the
Outstanding Debentures, to any suit instituted by any Debentureholder for the
enforcement of the payment of the principal of or interest on the Debentures, on
or after the respective due dates expressed in such Debenture or established
pursuant to this Indenture or to any suit instituted against the Trustee unless
it shall have been finally adjudicated in such suit that the Trustee was
negligent, committed an act of willful misconduct, or acted in bad faith.

     SECTION 7.8   DIRECT ACTION; RIGHT OF SET-OFF.

     In the event that an Event of Default has occurred and is continuing and
such event is attributable to the failure of the Company to pay interest on or
principal of the Debentures on an Interest Payment Date or Maturity Date, as
applicable, then a holder of Trust Preferred Securities may institute a legal
proceeding directly against the Company for enforcement of payment to such
holder of the principal of or interest on such Debentures having a principal
amount equal to the aggregate Liquidation Amount of the Trust Preferred
Securities of such holder (a "Direct Action"). In connection with such Direct
Action, the Company will have a right of set-off under this Indenture to the
extent of any payment made by the Company to such holder of the Trust Preferred
Securities with respect to such Direct Action.

<PAGE>

                                  ARTICLE VIII

                      FORM OF DEBENTURE AND ORIGINAL ISSUE

     SECTION 8.1   FORM OF DEBENTURE.

     The Debenture and the Trustee's Certificate of Authentication to be
endorsed thereon are to be substantially in the forms contained as Exhibit A to
this Indenture, attached hereto and incorporated herein by reference.

     SECTION 8.2   ORIGINAL ISSUE OF DEBENTURES.

     Debentures in the aggregate principal amount of Twenty Million Six Hundred
Nineteen Thousand Dollars ($20,619,000) may, upon execution of this Indenture,
be executed by the Company and delivered to the Trustee for authentication. The
Trustee shall thereupon authenticate and deliver said Debentures to or upon the
written order of the Company, signed by its Chief Executive Officer, President,
or any Vice President and its Treasurer or an Assistant Treasurer, without any
further action by the Company.

                                   ARTICLE IX

                             CONCERNING THE TRUSTEE

     SECTION 9.1   CERTAIN DUTIES AND RESPONSIBILITIES OF THE TRUSTEE.

             (a)   The Trustee, prior to the occurrence of an Event of Default
     and after the curing of all Events of Default that may have occurred, shall
     undertake to perform with respect to the Debentures such duties and only
     such duties as are specifically set forth in this Indenture. In case an
     Event of Default has occurred that has not been cured or waived, the
     Trustee shall exercise such of the rights and powers vested in it by this
     Indenture, and use the same degree of care and skill in their exercise, as
     a prudent Person would exercise or use under the circumstances in the
     conduct of its own affairs. No implied covenants shall be read into this
     Indenture against the Trustee.

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

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

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

<PAGE>

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

             (ii)  the Trustee shall not be liable for any 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 in ascertaining the pertinent facts;

             (iii) the Trustee shall not be liable with respect to any action
                   taken or omitted to be taken by it in good faith in
                   accordance with the direction of the holders of not less than
                   a majority in principal amount of the Debentures at the time
                   Outstanding 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 with respect to the Debentures;
                   and

             (iv)  none of the provisions contained in this Indenture shall
                   require the Trustee to expend or risk its own funds or
                   otherwise incur personal financial liability in the
                   performance of any of its duties or in the exercise of any of
                   its rights or powers, if there is reasonable ground for
                   believing that the repayment of such funds or liability is
                   not reasonably assured to it under the terms of this
                   Indenture or adequate indemnity against such risk is not
                   reasonably assured to it.

     SECTION 9.2   NOTICE OF DEFAULTS.

     Within five (5) Business Days after actual knowledge by a Responsible
Officer of the Trustee of the occurrence of any default hereunder with respect
to the Debentures, the Trustee shall transmit by mail to all holders of the
Debentures, as their names and addresses appear in the Debenture Register,
notice of such default, 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 or interest (including any Additional Interest) on any Debenture, 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 the
directors and/or Responsible Officers of the Trustee determines in good faith
that the withholding of such notice is in the interests of the holders of such
Debentures; and provided, further, that in the case of any default of the
character specified in Section 7.1(a)(iii), no such notice to holders of
Debentures need be sent until at least 30 days after the occurrence thereof. For
the purposes of this Section 9.2, the term "default" means any event which is,
or

<PAGE>

after notice or lapse of time or both, would become, an Event of Default with
respect to the Debentures.

     SECTION 9.3   CERTAIN RIGHTS OF TRUSTEE.

     Except as expressly set forth in Section 9.1(b):

             (a)   The Trustee may rely and shall be protected in acting or
     refraining from acting upon any resolution, certificate, statement,
     instrument, opinion, report, notice, request, consent, order, approval,
     bond, security 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)   Any request, direction, order or demand of the Company
     mentioned herein shall be sufficiently evidenced by a Board Resolution or
     an instrument signed in the name of the Company by its President or any
     Vice President and by the Secretary or an Assistant Secretary or the
     Treasurer or an Assistant Treasurer thereof (unless other evidence in
     respect thereof is specifically prescribed herein);

             (c)   The Trustee shall not be deemed to have knowledge of a
     default or an Event of Default, other than an Event of Default specified in
     Section 7.1(a)(i) or (ii), unless and until it receives written
     notification of such Event of Default from the Company or by holders of at
     least 25% of the aggregate principal amount of the Debentures at the time
     Outstanding;

             (d)   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 or suffered or
     omitted hereunder in good faith and in reliance thereon;

             (e)   The Trustee shall be under no obligation to exercise any of
     the rights or powers vested in it by this Indenture at the request, order
     or direction of any of the Debentureholders, pursuant to the provisions of
     this Indenture, unless such Debentureholders shall have offered to the
     Trustee reasonable security or indemnity against the costs, expenses and
     liabilities that may be incurred therein or thereby; nothing contained
     herein shall, however, relieve the Trustee of the obligation, upon the
     occurrence of an Event of Default of which a Responsible Officer of the
     Trustee has actual knowledge (that is continuing and has not been cured or
     waived) to exercise with respect to the Debentures such of the rights and
     powers vested in it by this Indenture, and to use the same degree of care
     and skill in its exercise, as a prudent person would exercise or use under
     the circumstances in the conduct of his or her own affairs;

             (f)   The Trustee shall not be liable for any action taken or
     omitted to be taken by it in good faith and believed by it to be authorized
     or within the discretion or rights or powers conferred upon it by this
     Indenture;

             (g)   The Trustee shall not be bound to make any investigation into
     the facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, consent, order, approval,
     bond, security, or other papers or documents, unless

<PAGE>

     requested in writing so to do by the holders of not less than a majority in
     principal amount of the Outstanding Debentures, determined as provided in
     Article X; provided, however, that if the payment within a reasonable time
     to the Trustee of the costs, expenses or liabilities likely to be incurred
     by it in the making of such investigation is, in the opinion of the
     Trustee, not reasonably assured to the Trustee by the security afforded to
     it by the terms of this Indenture, the Trustee may require reasonable
     indemnity against such costs, expenses or liabilities as a condition to so
     proceeding. The reasonable expense of every such examination shall be paid
     by the Company or, if paid by the Trustee, shall be repaid by the Company
     upon demand; and

             (h)   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.

     SECTION 9.4   TRUSTEE NOT RESPONSIBLE FOR RECITALS, ETC.

             (a)   The Recitals contained herein and in the Debentures shall be
     taken as the statements of the Company, and the Trustee assumes no
     responsibility for the correctness of the same.

             (b)   The Trustee makes no representations as to the validity or
     sufficiency of this Indenture or of the Debentures.

             (c)   The Trustee shall not be accountable for the use or
     application by the Company of any of the Debentures or of the proceeds of
     such Debentures, or for the use or application of any money paid over by
     the Trustee in accordance with any provision of this Indenture, or for the
     use or application of any money received by any Paying Agent other than the
     Trustee.

     SECTION 9.5   MAY HOLD DEBENTURES.

     The Trustee or any Paying Agent or Debenture Registrar, in its individual
or any other capacity, may become the owner or pledgee of Debentures with the
same rights it would have if it were not Trustee, Paying Agent or Debenture
Registrar.

     SECTION 9.6   MONEYS HELD IN TRUST.

     Subject to the provisions of Section 13.5, all money received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except such as it
may agree with the Company to pay thereon.

     SECTION 9.7   COMPENSATION AND REIMBURSEMENT.

             (a)   The Company covenants and agrees to pay to the Trustee, and
     the Trustee shall be entitled to, such reasonable compensation (which shall
     not be limited by any

<PAGE>

     provision of law in regard to the compensation of a trustee of an express
     trust), as the Company and the Trustee may from time to time agree in
     writing, for all services rendered by it in the execution of the trusts
     hereby created and in the exercise and performance of any of the powers and
     duties hereunder of the Trustee, and, except as otherwise expressly
     provided herein, the Company shall pay or reimburse the Trustee upon its
     request for all reasonable expenses, disbursements and advances incurred or
     made by the Trustee in accordance with any of the provisions of this
     Indenture (including the reasonable compensation and the expenses and
     disbursements of its counsel and of all Persons not regularly in its
     employ) except any such expense, disbursement or advance as may arise from
     its negligence or bad faith. The Company also covenants to indemnify the
     Trustee (and its officers, agents, directors and employees) for, and to
     hold it harmless against, any loss, liability, claim, action, suit, cost or
     expense incurred without negligence or bad faith on the part of the Trustee
     and arising out of or in connection with the acceptance or administration
     of this Indenture, including the reasonable costs and expenses of defending
     itself against any claim of liability in the premises.

             (b)   The obligations of the Company under this Section 9.7 to
     compensate and indemnify the Trustee and to pay or reimburse the Trustee
     for expenses, disbursements and advances shall constitute additional
     indebtedness hereunder. Such additional indebtedness shall be secured by a
     lien prior to that of the Debentures upon all property and funds held or
     collected by the Trustee as such, except funds held in trust for the
     benefit of the holders of particular Debentures.

     SECTION 9.8   RELIANCE ON OFFICERS' CERTIFICATE.

     Except as expressly set forth in Section 9.1(b), whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting to take any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

     SECTION 9.9   DISQUALIFICATION; CONFLICTING INTERESTS.

     If the Trustee has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act, if the Trust Indenture Act is then applicable to this
Indenture.

     SECTION 9.10  CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

     There shall at all times be a Trustee with respect to the Debentures issued
hereunder which shall at all times be a corporation or national banking
association organized and doing business under the laws of the United States of
America or any State or Territory thereof or of

<PAGE>

the District of Columbia, or a corporation or other Person permitted to act as
trustee by the Commission, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000, and
subject to supervision or examination by federal, state, territorial, or
District of Columbia authority. If such Person publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 9.10,
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. The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as
Trustee. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 9.10, the Trustee shall resign
immediately in the manner and with the effect specified in Section 9.11.

     SECTION 9.11  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

             (a)   The Trustee or any successor hereafter appointed, may at any
     time resign by giving written notice thereof to the Company and by
     transmitting notice of resignation by mail, first class postage prepaid, to
     the Debentureholders, as their names and addresses appear upon the
     Debenture Register. Upon receiving such notice of resignation, the Company
     shall promptly appoint a successor trustee with respect to this Indenture
     and Debentures by written instrument, in duplicate, executed by order of
     the Board of Directors, one copy of which instrument shall be delivered to
     the resigning Trustee and one copy to the successor trustee. If no
     successor trustee shall have been so appointed and have accepted
     appointment within 30 days after the mailing 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 this Indenture and
     Debentures, or any Debentureholder who has been a bona fide holder of a
     Debenture or Debentures for at least six months may, subject to the
     provisions of Sections 9.9 and 9.10, on behalf of himself and all others
     similarly situated, petition any such court for the appointment of a
     successor trustee. Such court may thereupon after such notice, if any, as
     it may deem proper and prescribe, appoint a successor trustee.

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

             (i)   the Trustee shall fail to comply with the provisions of
                   Section 9.9 after written request therefor by the Company or
                   by any Debentureholder who has been a bona fide holder of a
                   Debenture or Debentures for at least six months; or

             (ii)  the Trustee shall cease to be eligible in accordance with the
                   provisions of Section 9.10 and shall fail to resign after
                   written request therefor by the Company or by any such
                   Debentureholder; or

             (iii) the Trustee shall become incapable of acting, or shall be
                   adjudged a bankrupt or insolvent, or commence a voluntary
                   bankruptcy proceeding, or a receiver of the Trustee; or

<PAGE>

             (iv)  of its property shall be appointed or consented to, or any
                   public officer shall take charge or control of the Trustee or
                   of its property or affairs for the purpose of rehabilitation,
                   conservation or liquidation;

then, in any such case, the Company may remove the Trustee with respect to this
Indenture and all Debentures and appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy
of which instrument shall be delivered to the Trustee so removed and one copy to
the successor trustee, or, subject to the provisions of Section 9.10, unless the
Trustee's duty to resign is stayed as provided herein, any Debentureholder who
has been a bona fide holder of a Debenture or Debentures for at least six months
may, on behalf of that holder and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee. Such court may thereupon after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.

             (c)   The holders of a majority in aggregate principal amount of
     the Debentures at the time Outstanding may at any time remove the Trustee
     by so notifying the Trustee and the Company and may appoint a successor
     Trustee with the consent of the Company.

             (d)   Any resignation or removal of the Trustee and appointment of
     a successor trustee with respect to this Indenture and Debentures pursuant
     to any of the provisions of this Section 9.11 shall become effective upon
     acceptance of appointment by the successor trustee as provided in Section
     9.12.

             (e)   Any successor trustee appointed pursuant to this Section 9.11
     may be appointed with respect to this Indenture and Debentures, and at any
     time there shall be only one Trustee with respect to this Indenture and
     Debentures.

     SECTION 9.12  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

             (b)   Upon request of any successor trustee, the Company shall
     execute any and all instruments for more full and certain vesting in and
     confirming to such successor trustee all such rights, powers and trusts
     referred to in paragraph (a) of this Section 9.12.

             (c)   No successor trustee shall accept its appointment unless at
     the time of such acceptance such successor trustee shall be qualified and
     eligible under this Article IX.

<PAGE>

             (d)   Upon acceptance of appointment by a successor trustee as
     provided in this Section 9.12, the Company shall transmit notice of the
     succession of such trustee hereunder by mail, first class postage prepaid,
     to the Debentureholders, as their names and addresses appear upon the
     Debenture Register. If the Company fails to transmit such notice within ten
     days after acceptance of appointment by the successor trustee, the
     successor trustee shall cause such notice to be transmitted at the expense
     of the Company.

     SECTION 9.13  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

     Any Person into which the Trustee may be merged or converted or with which
it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding to
the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided that such Person shall be qualified under the
provisions of Section 9.9 and eligible under the provisions of Section 9.10,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding. In
case any Debentures 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
Debentures so authenticated with the same effect as if such successor Trustee
had itself authenticated such Debentures.

     SECTION 9.14  PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY.

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act, if
applicable, excluding any creditor relationship described in Section 311(b) of
the Trust Indenture Act. A Trustee who has resigned or been removed shall be
subject to Section 311(a) of the Trust Indenture Act to the extent applicable
and included therein.

                                    ARTICLE X

                         CONCERNING THE DEBENTUREHOLDERS

     SECTION 10.1  EVIDENCE OF ACTION BY HOLDERS.

             (a)   Whenever in this Indenture it is provided that the holders of
     a majority or specified percentage in aggregate principal amount of the
     Debentures may take any action (including the making of any demand or
     request, the giving of any notice, consent or waiver or the taking of any
     other action), the fact that at the time of taking any such action the
     holders of such majority or specified percentage have joined therein may be
     evidenced by any instrument or any number of instruments of similar tenor
     executed by such holders of Debentures in Person or by agent or proxy
     appointed in writing.

             (b) If the Company shall solicit from the Debentureholders any
     request, demand, authorization, direction, notice, consent, waiver or other
     action, the Company may, at its option, as evidenced by an Officers'
     Certificate, fix in advance a record date for the determination of
     Debentureholders entitled to give such request, demand, authorization,
     direction, notice, consent, waiver or other action, but the Company shall
     have no obligation to do so. If such a record date is fixed, such request,
     demand,

<PAGE>

     authorization, direction, notice, consent, waiver or other action may be
     given before or after the record date, but only the Debentureholders of
     record at the close of business on the record date shall be deemed to be
     Debentureholders for the purposes of determining whether Debentureholders
     of the requisite proportion of Outstanding Debentures have authorized or
     agreed or consented to such request, demand, authorization, direction,
     notice, consent, waiver or other action, and for that purpose the
     Outstanding Debentures shall be computed as of the record date; provided,
     however, that no such authorization, agreement or consent by such
     Debentureholders on the record date shall be deemed effective unless it
     shall become effective pursuant to the provisions of this Indenture not
     later than six months after the record date.

     SECTION 10.2  PROOF OF EXECUTION BY DEBENTUREHOLDERS.

     Subject to the provisions of Section 9.1(b), proof of the execution of any
instrument by a Debentureholder (such proof shall not require notarization) or
his agent or proxy and proof of the holding by any Person of any of the
Debentures shall be sufficient if made in the following manner:

             (a)   The fact and date of the execution by any such Person of any
     instrument may be proved in any reasonable manner acceptable to the Trustee
     or the Company.

             (b)   The ownership of Debentures shall be proved by the Debenture
     Register of such Debentures or by a certificate of the Debenture Registrar
     thereof.

             (c)   The Trustee or the Company may require such additional proof
     of any matter referred to in this Section 10.2 as it shall deem necessary.

     SECTION 10.3  WHO MAY BE DEEMED OWNERS.

     Prior to the due presentment for registration of transfer of any Debenture,
the Company, the Trustee, any Paying Agent, any Authenticating Agent and any
Debenture Registrar may deem and treat the Person in whose name such Debenture
shall be registered upon the books of the Company as the absolute owner of such
Debenture (whether or not such Debenture shall be overdue and notwithstanding
any notice of ownership or writing thereon made by anyone other than the
Debenture Registrar) for the purpose of receiving payment of or on account of
the principal of and interest on such Debenture (subject to Section 2.3) and for
all other purposes; and neither the Company nor the Trustee nor any Paying Agent
nor any Authenticating Agent nor any Debenture Registrar shall be affected by
any notice to the contrary.

     SECTION 10.4  CERTAIN DEBENTURES OWNED BY COMPANY DISREGARDED.

     In determining whether the holders of the requisite aggregate principal
amount of Debentures have concurred in any direction, consent or waiver under
this Indenture, the Debentures that are owned by the Company or any other
obligor on the Debentures or by any Person directly or indirectly controlling or
controlled by or under common control with the Company or any other obligor on
the Debentures shall be disregarded and deemed not to be Outstanding for the
purpose of any such determination, except that (i) for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, consent or

<PAGE>

waiver, only Debentures that the Trustee actually knows are so owned shall be so
disregarded; and (ii) for the purposes of this Section 10.4, the Trust shall be
deemed to not be controlled by the Company. The Debentures so owned that have
been pledged in good faith may be regarded as Outstanding for the purposes of
this Section 10.4, if the pledgee shall establish to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Debentures and that
the pledgee is not a Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or any such other
obligor. In case of a dispute as to such right, any decision by the Trustee
taken upon the advice of counsel shall be full protection to the Trustee.

     SECTION 10.5  ACTIONS BINDING ON FUTURE DEBENTUREHOLDERS.

     At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 10.1, of the taking of any action by the holders of the
majority or percentage in aggregate principal amount of the Debentures specified
in this Indenture in connection with such action, any holder of a Debenture that
is shown by the evidence to be included in the Debentures the holders of which
have consented to such action may, by filing written notice with the Trustee,
and upon proof of holding as provided in Section 10.2, revoke such action so far
as concerns such Debenture. Except as aforesaid, any such action taken by the
holder of any Debenture shall be conclusive and binding upon such holder and
upon all future holders and owners of such Debenture, and of any Debenture
issued in exchange therefor, on registration of transfer thereof or in place
thereof, irrespective of whether or not any notation in regard thereto is made
upon such Debenture. Any action taken by the holders of the majority or
percentage in aggregate principal amount of the Debentures specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the holders of all the Debentures.

                                   ARTICLE XI

                             SUPPLEMENTAL INDENTURES

     SECTION 11.1  SUPPLEMENTAL INDENTURES WITHOUT THE CONSENT OF
DEBENTUREHOLDERS.

     In addition to any supplemental indenture otherwise authorized by this
Indenture, the Company and the Trustee may from time to time and at any time
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect, if applicable),
without the consent of the Debentureholders, for one or more of the following
purposes:

             (a)   to cure any ambiguity, defect, or inconsistency herein, or in
     the Debentures;

             (b)   to comply with Article X;

             (c)   to provide for uncertificated Debentures in addition to or in
     place of certificated Debentures;

<PAGE>

             (d)   to add to the covenants of the Company for the benefit of the
     holders of all or any of the Debentures or to surrender any right or power
     herein conferred upon them 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 Debentures, as herein
     set forth;

             (e)   to make any change that does not adversely affect the rights
     of any Debentureholder in any material respect;

             (f)   to provide for the issuance of and establish the form and
     terms and conditions of the Debentures, to establish the form of any
     certifications required to be furnished pursuant to the terms of this
     Indenture or of the Debentures, or to qualify or maintain the qualification
     of this Indenture under the Trust Indenture Act, if applicable; or

             (g)   to evidence a consolidation or merger involving the Company
     as permitted under Section 12.1.

The Trustee is hereby authorized to join with the Company in the execution of
any such supplemental indenture, and to make any further appropriate agreements
and stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into any such supplemental indenture that affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section 11.1 may
be executed by the Company and the Trustee without the consent of the holders of
any of the Debentures at the time Outstanding, notwithstanding any of the
provisions of Section 11.2.

     SECTION 11.2  SUPPLEMENTAL INDENTURES WITH CONSENT OF DEBENTUREHOLDERS.

     With the consent (evidenced as provided in Section 10.1) of the holders of
not less than a majority in aggregate principal amount of the Debentures at the
time Outstanding, the Company, when authorized by Board Resolutions, and the
Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as then in effect, if applicable) for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of any supplemental indenture or of modifying in any manner
not covered by Section 11.1 the rights of the holders of the Debentures under
this Indenture; provided, however, that no such supplemental indenture shall
without the consent of the holders of each Debenture then Outstanding and
affected thereby, (i) extend the fixed maturity of any Debentures, reduce the
principal amount thereof, or reduce the rate or extend the time of payment of
interest thereon, without the consent of the holder of each Debenture so
affected; or (ii) reduce the aforesaid percentage of Debentures, the holders of
which are required to consent to any such supplemental indenture; provided
further, that if the Debentures are held by the Trust or a trustee of the Trust,
such supplemental indenture shall not be effective until the holders of a
majority in liquidation preference of Trust Securities of the Trust shall have
consented to such supplemental indenture; provided further, that if the consent
of the holder of each Outstanding Debenture is required, such supplemental
indenture shall not be effective until each holder of the Trust Securities of
the Trust shall have consented to such supplemental indenture. It shall not be
necessary for the

<PAGE>

consent of the Debentureholders affected thereby under this Section 11.2 to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such consent shall approve the substance thereof.

     SECTION 11.3  EFFECT OF SUPPLEMENTAL INDENTURES.

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

     SECTION 11.4  DEBENTURES AFFECTED BY SUPPLEMENTAL INDENTURES.

     Debentures affected by a supplemental indenture, authenticated and
delivered after the execution of such supplemental indenture pursuant to the
provisions of this Article XI, may bear a notation in form approved by the
Company, provided such form meets the requirements of any national securities
exchange or automated quotation service upon which the Debentures may be listed
or quoted, as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Debentures so modified as to conform, in the
opinion of the Board of Directors of the Company, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the
Company, authenticated by the Trustee (upon written order of the Company) and
delivered in exchange for the Debentures then Outstanding.

     SECTION 11.5  EXECUTION OF SUPPLEMENTAL INDENTURES.

             (a)   Upon the request of the Company, accompanied by its Board
     Resolutions authorizing the execution of any such supplemental indenture,
     and upon the filing with the Trustee of evidence of the consent of
     Debentureholders required to consent thereto as aforesaid, the Trustee
     shall join with the Company in the execution of such supplemental indenture
     unless such supplemental indenture affects the Trustee's own rights, duties
     or immunities under this Indenture or otherwise, in which case the Trustee
     may in its discretion, but shall not be obligated to, enter into such
     supplemental indenture. The Trustee, subject to the provisions of Sections
     9.1(b), may receive an Opinion of Counsel as conclusive evidence that any
     supplemental indenture executed pursuant to this Article XI is authorized
     or permitted by, and conforms to, the terms of this Article XI and that it
     is proper for the Trustee under the provisions of this Article XI to join
     in the execution thereof.

             (b)   Promptly after the execution by the Company and the Trustee
     of any supplemental indenture pursuant to the provisions of this Section
     11.5, the Trustee shall transmit by mail, first class postage prepaid, a
     notice, setting forth in general terms the substance of such supplemental
     indenture, to the Debentureholders as their names and addresses appear upon
     the Debenture Register. Any failure of the Trustee to mail such

<PAGE>

     notice, or any defect therein, shall not, however, in any way impair or
     affect the validity of any such supplemental indenture.

                                   ARTICLE XII

                              SUCCESSOR CORPORATION

     SECTION 12.1  COMPANY MAY CONSOLIDATE, ETC.

     Nothing contained in this Indenture or in any of the Debentures shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company, as the case may be), or successive
consolidations or mergers in which the Company, as the case may be, or its
successor or successors shall be a party or parties, or shall prevent any sale,
conveyance, transfer or other disposition of the property of the Company, as the
case may be, or its successor or successors as an entirety, or substantially as
an entirety, to any other Person (whether or not affiliated with the Company, as
the case may be, or its successor or successors) authorized to acquire and
operate the same; provided, however, the Company hereby covenants and agrees
that, (i) upon any such consolidation, merger, sale, conveyance, transfer or
other disposition, the due and punctual payment, in the case of the Company, of
the principal of and interest on all of the Debentures, according to their tenor
and the due and punctual performance and observance of all the covenants and
conditions of this Indenture to be kept or performed by the Company as the case
may be, shall be expressly assumed, by supplemental indenture (which shall
conform to the provisions of the Trust Indenture Act, to the extent the Trust
Indenture Act is then applicable to this Indenture or such supplemental
indenture) satisfactory in form to the Trustee in its good faith and executed
and delivered to the Trustee by the entity formed by such consolidation, or into
which the Company, as the case may be, shall have been merged, or by the entity
which shall have acquired such property; (ii) in case the Company consolidates
with or merges into another Person or conveys or transfers its properties and
assets substantially as an entirety to any Person, the successor Person is
organized under the laws of the United States or any state or the District of
Columbia; and (iii) immediately after giving effect thereto, no Event of
Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have occurred and be continuing.

     SECTION 12.2  SUCCESSOR PERSON SUBSTITUTED.

             (a)   In case of any such consolidation, merger, sale, conveyance,
     transfer or other disposition and upon the assumption by the successor
     Person, by supplemental indenture, executed and delivered to the Trustee
     and satisfactory in form to the Trustee in good faith, of, in the case of
     the Company, the due and punctual payment of the principal of and interest
     on all of the Debentures Outstanding and the due and punctual performance
     of all of the covenants and conditions of this Indenture to be performed by
     the Company, as the case may be, such successor Person shall succeed to and
     be substituted for the Company, with the same effect as if it had been
     named as the Company herein, and thereupon the predecessor Person shall be
     relieved of all obligations and covenants under this Indenture and the
     Debentures.

<PAGE>

             (b)   In case of any such consolidation, merger, sale, conveyance,
     transfer or other disposition such changes in phraseology and form (but not
     in substance) may be made in the Debentures thereafter to be issued as may
     be appropriate.

             (c)   Nothing contained in this Indenture or in any of the
     Debentures shall prevent the Company from merging into itself or acquiring
     by purchase or otherwise all or any part of the property of any other
     Person (whether or not affiliated with the Company).

     SECTION 12.3  EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE.

     The Trustee, subject to the provisions of Section 9.1(b), may receive an
Opinion of Counsel as conclusive evidence that any such consolidation, merger,
sale, conveyance, transfer or other disposition, and any such assumption, comply
with the provisions of this Article XII.

                                  ARTICLE XIII

                           SATISFACTION AND DISCHARGE

     SECTION 13.1  SATISFACTION AND DISCHARGE OF INDENTURE.

     If at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Debentures theretofore authenticated (other than any Debentures
that shall have been destroyed, lost or stolen and that shall have been replaced
or paid as provided in Section 2.9) and the principal and accrued interest of
all Debentures for whose payment money or Governmental Obligations have
theretofore been deposited in trust or segregated and held in trust by the
Company (and thereupon repaid to the Company or discharged from such trust, as
provided in Section 13.5); or (b) all such Debentures not theretofore delivered
to the Trustee for cancellation shall have become due and payable, or are by
their terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption, and the Company shall deposit or cause to be
deposited with the Trustee as trust funds the entire amount in money or
Governmental Obligations sufficient or a combination thereof, sufficient in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay at
maturity or upon redemption all Debentures not theretofore delivered to the
Trustee for cancellation, including principal and interest due or to become due
to such date of maturity or date fixed for redemption, as the case may be, and
if the Company shall also pay or cause to be paid all other sums payable
hereunder by the Company; then this Indenture shall thereupon cease to be of
further effect except for the provisions of Sections 2.3, 2.7, 2.9, 5.1, 5.2,
5.3, 9.7 and 9.10, that shall survive until the date of maturity or redemption
date, as the case may be, and Section 13.5, that shall survive to such date and
thereafter, and the Trustee, on demand of the Company and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture.

     SECTION 13.2  DISCHARGE OF OBLIGATIONS.

     If at any time all Debentures not heretofore delivered to the Trustee for
cancellation or that have not become due and payable as described in Section
13.1 shall have been paid the

<PAGE>

Company by depositing irrevocably with the Trustee as trust funds money or an
amount of Governmental Obligations sufficient in the opinion of a nationally
recognized certified public accounting firm to pay at maturity or upon
redemption all Debentures not theretofore delivered to the Trustee for
cancellation, including principal and interest due or to become due to such date
of maturity or date fixed for redemption, as the case may be, and if the Company
shall also pay or cause to be paid all other sums payable hereunder by the
Company, then after the date such moneys or Governmental Obligations, as the
case may be, are deposited with the Trustee, the obligations of the Company
under this Indenture shall cease to be of further effect except for the
provisions of Sections 2.3, 2.7, 2.9, 5.1, 5.2, 5.3, 9.6, 9.7, 9.10 and 13.5
that shall survive until such Debentures shall mature and be paid. Thereafter,
Sections 9.7 and 13.5 shall survive.

     SECTION 13.3  DEPOSITED MONEY TO BE HELD IN TRUST.

     All money or Governmental Obligations deposited with the Trustee pursuant
to Sections 13.1 or 13.2 shall be held in trust and shall be available for
payment as due, either directly or through any Paying Agent (including the
Company acting as its own Paying Agent), to the holders of the Debentures for
the payment or redemption of which such moneys or Governmental Obligations have
been deposited with the Trustee.

     SECTION 13.4  PAYMENT OF MONEY HELD BY PAYING AGENTS.

     In connection with the satisfaction and discharge of this Indenture, all
moneys or Governmental Obligations then held by any Paying Agent under the
provisions of this Indenture shall, upon demand of the Company, be paid to the
Trustee and thereupon such Paying Agent shall be released from all further
liability with respect to such money or Governmental Obligations.

     SECTION 13.5  REPAYMENT TO COMPANY.

     Any money or Governmental Obligations deposited with any Paying Agent or
the Trustee, or then held by the Company in trust, for payment of principal of
or interest on the Debentures that are not applied but remain unclaimed by the
holders of such Debentures for at least two years after the date upon which the
principal of or interest on such Debentures shall have respectively become due
and payable, shall be repaid to the Company, as the case may be, on May 31 of
each year or (if then held by the Company) shall be discharged from such trust;
and thereupon the Paying Agent and the Trustee shall be released from all
further liability with respect to such moneys or Governmental Obligations, and
the holder of any of the Debentures entitled to receive such payment shall
thereafter, as an unsecured general creditor, look only to the Company for the
payment thereof.

<PAGE>

                                   ARTICLE XIV

                IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
                                  AND DIRECTORS

     SECTION 14.1  NO RECOURSE.

     No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of the Debentures, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer or
director, past, present or future, as such, of the Company or of any predecessor
or successor Person, either directly or through the Company or any such
predecessor or successor Person, 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 (or other entity, as the case may be)
obligations, and that no such personal liability whatever shall attach to, or is
or shall be incurred by, the incorporators, stockholders, officers or directors
as such, of the Company or of any predecessor or successor Person, 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 of the Debentures 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, and any and all such rights and claims
against, every such incorporator, stockholder, 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 of the Debentures 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 Debentures.

                                   ARTICLE XV

                            MISCELLANEOUS PROVISIONS

     SECTION 15.1  EFFECT ON SUCCESSORS AND ASSIGNS.

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

     SECTION 15.2  ACTIONS BY SUCCESSOR.

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

     SECTION 15.3  SURRENDER OF COMPANY POWERS.

     The Company by instrument in writing executed by appropriate authority of
its Board of Directors and delivered to the Trustee may surrender any of the
powers reserved to the

<PAGE>

Company, and thereupon such power so surrendered shall terminate both as to the
Company, as the case may be, and as to any successor Person.

     SECTION 15.4  NOTICES.

     Except as otherwise expressly provided herein any notice or demand that by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the holders of Debentures to or on the Company may be given
or served by being deposited first class postage prepaid in a post-office
letterbox addressed to the Company's Chief Executive Officer. Any notice,
election, request or demand by the Company or any Debentureholder to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

     SECTION 15.5  GOVERNING LAW.

     This Indenture and each Debenture shall be deemed to be a contract made
under the internal laws of the State of New York and for all purposes shall be
construed in accordance with the laws of said State, without regard to its
choice of law provisions. Any action or proceeding arising out of this
Indenture, as supplemented or amended, in any way shall be brought and enforced
exclusively in the applicable United States District Court in the State of New
York or in the event such court lacks jurisdiction, in the applicable New York
State Court.

     SECTION 15.6  TREATMENT OF DEBENTURES AS DEBT.

     It is intended that the Debentures shall be treated as indebtedness and not
as equity for federal income tax purposes. The provisions of this Indenture
shall be interpreted to further this intention.

     SECTION 15.7  COMPLIANCE CERTIFICATES AND OPINIONS.

             (a)   Upon any application or demand by the Company to the Trustee
     to take any action under any of the provisions of this Indenture, the
     Company shall furnish to the Trustee an Officers' Certificate stating that
     all conditions precedent provided for in this Indenture relating to the
     proposed action have been complied with and an Opinion of Counsel stating
     that in the opinion of such counsel all such conditions precedent have been
     complied with, except that in the case of any such application or demand as
     to which the furnishing of such documents is specifically required by any
     provision of this Indenture relating to such particular application or
     demand, no additional certificate or opinion need be furnished.

             (b)   Each certificate or opinion of the Company provided for in
     this Indenture and delivered to the Trustee with respect to compliance with
     a condition or covenant in this Indenture shall include (i) a statement
     that the Person making such certificate or opinion has read such covenant
     or condition; (ii) 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; (iii) a statement that,
     in the opinion of such Person, he has made such examination or
     investigation as, in the opinion of such Person, is necessary to enable him
     to express an informed opinion as to whether or not

<PAGE>

     such covenant or condition has been complied with; and (iv) a statement as
     to whether or not, in the opinion of such Person, such condition or
     covenant has been complied with; provided, however, that each such
     certificate shall comply with the provisions of Section 314 of the Trust
     Indenture Act, if applicable.

     SECTION 15.8  PAYMENTS ON BUSINESS DAYS.

     In any case where the date of maturity of interest or principal of any
Debenture or the date of redemption of any Debenture shall not be a Business
Day, then payment of interest or principal may (subject to Section 2.5(c)) be
made on the next succeeding Business Day with the same force and effect as if
made on the nominal date of maturity or redemption, and no interest shall accrue
for the period after such nominal date.

     SECTION 15.9  APPLICATION OF TRUST INDENTURE ACT; CONFLICT.

             (a)   Unless and until this Indenture is required to be qualified
     under the Trust Indenture Act, (i) the provisions of this Indenture that
     expressly relate to the Trust Indenture Act do not apply and shall not be
     given effect; and (ii) notwithstanding any other provision of this
     Indenture (including without limitation Sections 7.7, 9.1(b), 9.7(a) and
     9.8 hereof), no Trustee shall be liable for its own simple negligence, but
     shall only be liable for its own gross negligence.

             (b)   If the Indenture is required to be qualified under the Trust
     Indenture Act at any time, then if and to the extent that any provision of
     this Indenture limits, qualifies or conflicts with the duties imposed by
     Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed
     duties shall control.

     SECTION 15.10 COUNTERPARTS.

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

     SECTION 15.11 SEVERABILITY.

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

     SECTION 15.12 ASSIGNMENT.

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

<PAGE>

     SECTION 15.13 ACKNOWLEDGMENT OF RIGHTS; RIGHT OF SET OFF.

             (a)   The Company acknowledges that, with respect to any Debentures
     held by the Trust or a trustee of the Trust, if the Property Trustee fails
     to enforce its rights under this Indenture as the holder of the Debentures
     held as the assets of the Trust, any holder of Trust Preferred Securities
     may, to the extent permitted under applicable law, institute legal
     proceedings directly against the Company to enforce such Property Trustee's
     rights under this Indenture without first instituting any legal proceedings
     against such Property Trustee or any other person or entity.
     Notwithstanding the foregoing, if an Event of Default has occurred and is
     continuing and such event is attributable to the failure of the Company to
     pay interest or principal on the Debentures on the date such interest or
     principal is otherwise payable (or in the case of redemption, on the
     redemption date), the Company acknowledges that a holder of Trust Preferred
     Securities may directly institute a proceeding against the Company for
     enforcement of payment to such holder of the principal of or interest on
     the Debentures having a principal amount equal to the aggregate liquidation
     amount of the Trust Preferred Securities of such holder on or after the
     respective due date specified in the Debentures.

             (b)   Notwithstanding anything to the contrary contained in this
     Indenture, the Company shall have the right to setoff any payment it is
     otherwise required to make hereunder in respect of any Trust Securities to
     the extent that the Company has previously made, or is concurrently making,
     a payment to the holder of any such Trust Securities under the Trust
     Preferred Securities Guarantee or in connection with a proceeding for
     enforcement of payment of the principal of or interest on the Debentures
     directly brought by holders of any such Trust Securities.

                                   ARTICLE XVI

                           SUBORDINATION OF DEBENTURES

     SECTION 16.1  AGREEMENT TO SUBORDINATE.

     The Company covenants and agrees, and each holder of Debentures issued
hereunder by such holder's acceptance thereof likewise covenants and agrees,
that all Debentures shall be issued subject to the provisions of this Article
XVI; and each holder of a Debenture, 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 and interest on all
Debentures issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and junior in right of payment to the prior payment
in full of all Senior Debt, Subordinated Debt and Additional Senior Obligations
of the Company (collectively, "Senior Indebtedness") to the extent provided
herein, whether outstanding at the date of this Indenture or thereafter
incurred. No provision of this Article XVI shall prevent the occurrence of any
default or Event of Default hereunder. In no event shall the Debentures be
subordinate to the Company's (i) trade accounts payable, or (ii) accrued
liabilities arising in the ordinary course of business; however, the Debentures
shall in all cases be subordinate to (i) any debt of the Company to any of its
subsidiaries and (ii) any debt of the Company to any of its employees.

<PAGE>

     SECTION 16.2  DEFAULT ON SENIOR DEBT, SUBORDINATED DEBT OR ADDITIONAL
SENIOR OBLIGATIONS.

     In the event and during the continuation of any default by the Company in
the payment of principal, premium, interest or any other payment due on any
Senior Indebtedness, or in the event that the maturity of any Senior
Indebtedness 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 payments) of or interest on the Debentures. In the event that,
notwithstanding the foregoing, any payment shall be received by the Trustee when
such payment is prohibited by the preceding sentence 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 Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Indebtedness may have been issued, as their respective
interests may appear, but only to the extent that the holders of the Senior
Indebtedness (or their representative or representatives or a trustee) notify
the Trustee in writing within 90 days of such payment of the amounts then due
and owing on the Senior Indebtedness and only the amounts specified in such
notice to the Trustee shall be paid to the holders of Senior Indebtedness.

     SECTION 16.3  LIQUIDATION; DISSOLUTION; BANKRUPTCY.

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

             (b)   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

<PAGE>

     Senior Indebtedness of the Company is paid in full, or provision is made
     for such payment in money in accordance with its terms, such payment or
     distribution shall be held in trust for the benefit of and shall be paid
     over or delivered to the holders of such Senior Indebtedness or their
     representative or representatives, or to the trustee or trustees under any
     indenture pursuant to which any instruments evidencing such Senior
     Indebtedness may have been issued, and their respective interests may
     appear, as calculated by the Company, for application to the payment of all
     Senior Indebtedness of the Company, as the case may be, remaining unpaid to
     the extent necessary to pay such Senior Indebtedness in full in money in
     accordance with its terms, after giving effect to any concurrent payment or
     distribution to or for the benefit of the holders of such Senior
     Indebtedness.

             (c)   For purposes of this Article XVI, 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 Person provided for by a plan of reorganization or readjustment, the
     payment of which is subordinated at least to the extent provided in this
     Article XVI with respect to the Debentures to the payment of all Senior
     Indebtedness of the Company, as the case may be, that may at the time be
     outstanding, provided that (i) such Senior Indebtedness is assumed by the
     new Person, if any, resulting from any such reorganization or readjustment;
     and (ii) the rights of the holders of such Senior Indebtedness are not,
     without the consent of such holders, altered by such reorganization or
     readjustment. The consolidation of the Company with, or the merger of the
     Company into, another Person or the liquidation or dissolution of the
     Company following the conveyance or transfer of its property as an
     entirety, or substantially as an entirety, to another Person upon the terms
     and conditions provided for in Article XII 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 Article XII. 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 9.7.

     SECTION 16.4  SUBROGATION.

             (a)   Subject to the payment in full of all Senior Indebtedness of
     the Company, the rights of the holders of the Debentures shall be
     subrogated to the rights of the holders of such Senior Indebtedness to
     receive payments or distributions of cash, property or securities of the
     Company, as the case may be, applicable to such Senior Indebtedness until
     the principal of and interest on the Debentures shall be paid in full; and,
     for the purposes of such subrogation, no payments or distributions to the
     holders of such Senior Indebtedness of any cash, property or securities to
     which the holders of the Debentures or the Trustee would be entitled except
     for the provisions of this Article XVI, and no payment pursuant to the
     provisions of this Article XVI to or for the benefit of the holders of such
     Senior Indebtedness by holders of the Debentures or the Trustee, shall, as
     between the Company, its creditors (other than holders of Senior
     Indebtedness), and the holders of the Debentures, be deemed to be a payment
     by the Company to or on account of such Senior Indebtedness. It is
     understood that the provisions of this Article XVI are and are intended
     solely for the purposes of defining the relative rights of the holders of

<PAGE>

     the Debentures, on the one hand, and the holders of such Senior
     Indebtedness on the other hand.

             (b)   Nothing contained in this Article XVI or elsewhere in this
     Indenture or in the Debentures is intended to or shall impair, as between
     the Company, its creditors (other than the holders of Senior Indebtedness
     of the Company), and the holders of the Debentures, the obligation of the
     Company, which is absolute and unconditional, to pay to the holders of the
     Debentures the principal of and interest on the Debentures 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
     Debentures and creditors of the Company, as the case may be, other than the
     holders of Senior Indebtedness, as the case may be, nor shall anything
     herein or therein prevent the Trustee or the holder of any Debenture from
     exercising all remedies otherwise permitted by applicable law upon default
     under this Indenture, subject to the rights, if any, under this Article XVI
     of the holders of such 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.

             (c)   Upon any payment or distribution of assets of the Company
     referred to in this Article XVI, the Trustee, subject to the provisions of
     Section 9.1(b), and the holders of the Debentures 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 Debentures, for the purposes of ascertaining the Persons entitled to
     participate in such distribution, the holders of Senior Indebtedness 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 XVI.

     SECTION 16.5  TRUSTEE TO EFFECTUATE SUBORDINATION.

     Each holder of Debentures by such holder's acceptance thereof authorizes
and directs the Trustee on such holder's behalf to take such action as the
Company advises the Trustee in writing is necessary or appropriate to effectuate
the subordination provided in this Article XVI and appoints the Trustee such
holder's attorney-in-fact for any and all such purposes.

     SECTION 16.6  NOTICE BY THE COMPANY.

             (a)   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 money to or by the Trustee in respect of the
     Debentures pursuant to the provisions of this Article XVI. Notwithstanding
     the provisions of this Article XVI or any other provision of this
     Indenture, the Trustee shall not be charged with knowledge of the existence
     of any facts that would prohibit the making of any payment of money to or
     by the Trustee in respect of the Debentures pursuant to the provisions of
     this Article XVI, unless and until a Responsible Officer of the Trustee
     shall have received written notice

<PAGE>

     thereof from the Company or a holder or holders of Senior Indebtedness or
     from any trustee therefore; and before the receipt of any such written
     notice, the Trustee, subject to the provisions of Section 9.1(b), 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 or interest
     on any Debenture), 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.

             (b)   The Trustee, subject to the provisions of Section 9.1(b),
     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 Senior
     Indebtedness (or a trustee on behalf of such holder) to establish that such
     notice has been given by a holder of such 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 Senior Indebtedness to
     participate in any payment or distribution pursuant to this Article XVI,
     the Trustee may request such Person to furnish evidence to the reasonable
     satisfaction of the Trustee as to the amount of such Senior Indebtedness
     held by such Person, the extent to which such Person is entitled to
     participate in such payment or distribution and any other facts pertinent
     to the rights of such Person under this Article XVI, and, if such evidence
     is not furnished, the Trustee may defer any payment to such Person pending
     judicial determination as to the right of such Person to receive such
     payment.

     SECTION 16.7  RIGHTS OF THE TRUSTEE; HOLDERS OF SENIOR INDEBTEDNESS.

             (a)   The Trustee in its individual capacity shall be entitled to
     all the rights set forth in this Article XVI in respect of any Senior
     Indebtedness at any time held by it, to the same extent as any other holder
     of Senior Indebtedness, and nothing in this Indenture shall deprive the
     Trustee of any of its rights as such holder. The Trustee's right to
     compensation and reimbursement of expenses as set forth in Section 9.7
     shall not be subject to the subordination provisions of the Article XVI.

             (b)   With respect to the holders of Senior Indebtedness, the
     Trustee undertakes to perform or to observe only such of its covenants and
     obligations as are specifically set forth in this Article XVI, and no
     implied covenants or obligations with respect to the holders of such Senior
     Indebtedness shall be read into this Indenture against the Trustee. The
     Trustee shall not be deemed to owe any fiduciary duty to the holders of
     such Senior Indebtedness and, subject to the provisions of Section 9.1(b),
     the Trustee shall not be liable to any holder of such Senior Indebtedness
     if it shall in good faith pay over or deliver to holders of Debentures, the
     Company or any other Person money or assets to which any holder of such
     Senior Indebtedness shall be entitled by virtue of this Article XVI or
     otherwise.

<PAGE>

     SECTION 16.8  SUBORDINATION MAY NOT BE IMPAIRED.

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

             (b)    Without in any way limiting the generality of the foregoing
     paragraph, the holders of Senior Indebtedness of the Company may, at any
     time and from time to time, without the consent of or notice to the Trustee
     or the holders of the Debentures, without incurring responsibility to the
     holders of the Debentures and without impairing or releasing the
     subordination provided in this Article XVI or the obligations hereunder of
     the holders of the Debentures to the holders of such 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 Senior
     Indebtedness, or otherwise amend or supplement in any manner such Senior
     Indebtedness or any instrument evidencing the same or any agreement under
     which such Senior Indebtedness is outstanding; (ii) sell, exchange, release
     or otherwise deal with any property pledged, mortgaged or otherwise
     securing such Senior Indebtedness; (iii) release any Person liable in any
     manner for the collection of such Senior Indebtedness; and (iv) exercise or
     refrain from exercising any rights against the Company and any other
     Person.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

     IN WITNESS WHEREOF, this Indenture is dated as set forth below and
effective as of the day and year first above written.

                                Mountainbank Financial Corporation

                                By:       /s/ Greg Gibson
                                   -------------------------------
                                Name:       GREG GIBSON
                                     -----------------------------
                                Title:          CFO
                                      ----------------------------
                                Date:         6/16/02
                                     -----------------------------

                                Wells Fargo Bank, National Association, AS
                                TRUSTEE

                                By:      /s/ Stephen J. Kaba
                                   -------------------------------
                                Name:      STEPHEN J. KABA
                                     -----------------------------
                                Title:     VICE PRESIDENT
                                      ----------------------------
                                Date:         6/16/02
                                     -----------------------------

<PAGE>

                          [SIGNATURE PAGE TO INDENTURE]

<PAGE>

                                    EXHIBIT A

                        FLOATING RATE JUNIOR SUBORDINATED
                          DEFERRABLE INTEREST DEBENTURE
                      OF MOUNTAINBANK FINANCIAL CORPORATION

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