Document:

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                                                                  Exhibit 4.9(b)

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                               GUARANTEE AGREEMENT

                                       OF

                               JPM CAPITAL TRUST I

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                          DATED AS OF DECEMBER 4, 1996

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                                    This GUARANTEE AGREEMENT, dated as of
                           December 4, 1996, is executed and delivered by J.P.
                           Morgan & Co. Incorporated, a Delaware corporation
                           (the "Guarantor"), and First Trust of New York,
                           National Association, as the initial GUARANTEE
                           Trustee (as defined herein) for the benefit of the
                           Holders (as defined herein) from time to time of the
                           Preferred Securities (as defined herein) of JPM
                           Capital Trust I, a Delaware statutory business trust
                           (the "Issuer").

                 WHEREAS, pursuant to an Amended and Restated Declaration of
Trust (the "Declaration"), dated as of December 4, 1996 among the trustees of
the Issuer named therein, J.P. Morgan & Co. Incorporated, as Sponsor, and the
Holders from time to time of undivided beneficial interests in the assets of the
Issuer, the Issuer may issue up to $750,000,000 aggregate liquidation amount of
its 7.540% Preferred Trust Securities (the "Preferred Securities") representing
undivided beneficial interests in the assets of the Issuer and having the
terms set forth in Exhibit B to the Declaration, of which $750,000,000
liquidation amount of the Preferred Securities are being issued as of the date
hereof.

                 WHEREAS, as incentive for the Holders to purchase Preferred
Securities, the Guarantor desires to irrevocably and unconditionally agree, to
the extent set forth herein, to pay to the Holders of the Preferred Securities
the GUARANTEE Payments (as defined herein) and to make certain other payments on
the terms and conditions set forth herein.

                 NOW, THEREFORE, in consideration of the purchase by the initial
purchasers thereof of Preferred Securities, which purchase the Guarantor hereby
agrees shall benefit the Guarantor, the Guarantor executes and delivers this
GUARANTEE Agreement for the benefit of the Holders from time to time of the
Preferred Securities.
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                                    ARTICLE I

                                   Definitions
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                  (a) Capitalized terms used in this GUARANTEE Agreement but not
defined in the preamble above have the respective meanings assigned to them in
this Section 1.01.

                  (b) A term defined anywhere in this GUARANTEE Agreement has
the same meaning throughout.

                  (c) All references to "the GUARANTEE Agreement" or "this
GUARANTEE Agreement" are to this GUARANTEE Agreement as modified, supplemented
or amended from time to time.

                  (d) All references in this GUARANTEE Agreement to Articles and
Sections are to Articles and Sections of this GUARANTEE Agreement unless
otherwise specified.

                  (e) A term defined in the Trust Indenture Act as the same
meaning when used in this GUARANTEE Agreement unless otherwise defined in this
GUARANTEE Agreement or unless the context otherwise requires.

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

                  "Affiliate" has the same meaning as given to that term in Rule
405 of the Securities Act of 1933, as amended, or any successor rule thereunder.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Securities" means the securities representing
undivided beneficial interests in the assets of the Issuer, having the terms
set forth in Exhibit C to the Declaration.

                  "Covered Person" means any Holder of Preferred Securities.

                  "Debentures" means the series of Junior Subordinated
Debentures issued by the Guarantor under the Indenture to the Property Trustee
and entitled the "7.540% Junior Subordinated Debentures due 2027".
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                  "Distributions" means the periodic distributions and other
payments payable to Holders of Preferred Securities in accordance with the terms
of the Preferred Securities set forth in Exhibit B to the Declaration.

                  "Event of Default" means a default by the Guarantor on any of
its payment or other obligations under this GUARANTEE Agreement.

                  "Guarantee Payments" shall mean the following payments or
distributions, without duplication, with respect to the Preferred Securities, to
the extent not paid or made by the Issuer: (i) any accrued and unpaid
Distributions and the redemption price, including all accrued and unpaid
Distributions to the date of redemption (the "Redemption Price"), with respect
to the Preferred Securities called for redemption by the Issuer but only if and
to the extent that in each case the Guarantor has made a payment to the Property
Trustee of interest or principal on the Debentures and (ii) upon a voluntary or
involuntary dissolution, winding-up or termination of the Issuer (other than in
connection with the distribution of Debentures to Holders or the redemption of
all the Preferred Securities upon the maturity or redemption of the Debentures
as provided in the Declaration), the lesser of (a) the aggregate of the
liquidation amount and all accrued and unpaid Distributions on the Preferred
Securities to the date of payment, to the extent the Issuer has funds available
therefor, or (b) the amount of assets of the Issuer remaining available for
distribution to Holders in liquidation of the Issuer (in either case, the
"Liquidation Distribution").

                  "Guarantee Trustee" means First Trust of New York, National
Association until a Successor GUARANTEE Trustee has been appointed and accepted
such appointment pursuant to the terms of this GUARANTEE Agreement and
thereafter means each such Successor GUARANTEE Trustee.

                  "Holder" shall mean any holder, as registered on the books and
records of the Issuer, of any Preferred Securities; provided, however, that in
determining whether the holders of the requisite percentage of Preferred
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any entity directly or indirectly controlling
or controlled by or under direct or indirect common control with the Guarantor.
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                  "Indemnified Person" means the GUARANTEE Trustee, any
Affiliate of the GUARANTEE Trustee, and any officers, directors, shareholders,
members, partners, employees, representatives or agents of the GUARANTEE
Trustee.

                  "Indenture" means the Junior Subordinated Indenture dated as
of November 1, 1996 between the Guarantor and First Trust of New York, National
Association, as trustee, as supplemented by the First Supplemental Indenture
thereto dated as of December 4, 1996, pursuant to which the Debentures are to be
issued.

                  "Majority in liquidation amount of the Preferred Securities"
means, except as otherwise required by the Trust Indenture Act, Holder(s) of
outstanding Preferred Securities voting together as a single class, who are the
record owners of Preferred Securities whose liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus
accrued and unpaid Distributions to the date upon which the voting percentages
are determined) represents more than 50% of the liquidation amount of all
outstanding Preferred Securities.

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

                  "Preferred Securities" has the meaning set forth in the first
WHEREAS clause above.

                  "Property Trustee" means the Person acting as Property
Trustee under the Declaration.

                  "Redemption Price" means the amount payable on redemption of
the Preferred Securities in accordance with the terms of the Preferred
Securities.

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

                  "66-2/3% in liquidation amount of the Preferred Securities"
means, except as otherwise required by the Trust Indenture Act, Holder(s) of
outstanding Preferred Securities voting together as a single class who are the
record owners of Preferred Securities whose liquidation amount (including the
stated amount that would be paid on redemption, liquidation or otherwise, plus
accrued and unpaid Distributions to the date upon which the voting percentages
are determined) represents 66-2/3% or more of the liquidation amount of all
Preferred Securities.

                  "Successor GUARANTEE Trustee" means a successor GUARANTEE
Trustee possessing the qualifications to act as a GUARANTEE Trustee under
Section 4.01.

                  "Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended.

                                   ARTICLE II

                               Trust Indenture Act

                  SECTION 2.01. Trust Indenture Act; Application. (a) This
GUARANTEE Agreement is subject to the provisions of the Trust Indenture Act that
are required to be part of this GUARANTEE Agreement and shall, to the extent
applicable, be governed by such provisions.

                  (b) If and to the extent that any provision of this GUARANTEE
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

                  (c) The application of the Trust Indenture Act to this
GUARANTEE Agreement shall not affect the nature of the Preferred Securities as
equity securities representing undivided beneficial interests in the assets of
the Issuer.
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                  SECTION 2.02. Lists of Holders of Preferred Securities. (a)
The Guarantor shall provide the GUARANTEE Trustee with such information as is
required under Section 312(a) of the Trust Indenture Act at the times and in
the manner provided in Section 312(a).

                  (b) The GUARANTEE Trustee shall comply with its obligations
under Sections 310(b), 311 and 312(b) of the Trust Indenture Act.

                  SECTION 2.03. Reports by the GUARANTEE Trustee. Within 60 days
after May 15 of each year, the GUARANTEE Trustee shall provide to the Holders of
the Preferred Securities such reports as are required by Section 313 of the
Trust Indenture Act, if any, in the form, in the manner and at the times
provided by Section 313 of the Trust Indenture Act. The GUARANTEE Trustee shall
also comply with the requirements of Section 313(d) of the Trust Indenture Act.

                  SECTION 2.04. Periodic Reports to the GUARANTEE Trustee. The
Guarantor shall provide to the GUARANTEE Trustee, the Commission and the Holders
of the Preferred Securities, as applicable, such documents, reports and
information as required by Section 314(a) (1) - (3) (if any) of the Trust
Indenture Act and the compliance certificates required by Section 314(a)(4)
and (c) of the Trust Indenture Act, any such certificates to be provided in the
form, in the manner and at the times required by Section 314(a)(4) and (c) of
the Trust Indenture Act (provided that any certificate to be provided pursuant
to Section 314(a)(4) of the Trust Indenture Act shall be provided within 120
days of the end of each fiscal year of the Issuer).

                  SECTION 2.05. Evidence of Compliance with Conditions
Precedent. The Guarantor shall provide the GUARANTEE Trustee such evidence of
compliance with any conditions precedent, if any, provided for in this GUARANTEE
Agreement which relate to any of the matters set forth in Section 314(c) of
the Trust Indenture Act. Any certificate or opinion required to be given
pursuant to Section 314(c) shall comply with Section 314(e) of the Trust
Indenture Act.

                  SECTION 2.06. Events of Default; Waiver. (a) Subject to
Section 2.06(b), Holders of Preferred Securities may by vote of at least a
Majority in liquidation amount of the Preferred Securities, (A) direct the time,
method and place of conducting any proceeding for any remedy
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available to the GUARANTEE Trustee, or exercising any trust or power conferred
upon by the GUARANTEE Trustee or (B) on behalf of the Holders of all Preferred
Securities waive any past Event of Default and its consequences. Upon such
waiver, any such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this
GUARANTEE Agreement, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

                  (b) The right of any Holder of Preferred Securities to receive
payment of the GUARANTEE Payments in accordance with this GUARANTEE Agreement,
or to institute suit for the enforcement of any such payment, shall not be
impaired without the consent of each such Holder.

                  SECTION 2.07. Disclosure of Information. The disclosure of
information as to the names and addresses of the Holders of the Preferred
Securities in accordance with Sections 312 of the Trust Indenture Act,
regardless of the source from which such information was derived, shall not be
deemed to be a violation of any existing law, or any law hereafter enacted which
does not specifically refer to Section 312 of the Trust Indenture Act, nor shall
the GUARANTEE Trustee be held accountable by reason of mailing any material
pursuant to a request made under Section 312(b) of the Trust Indenture Act.

                  SECTION 2.08. Conflicting Interest. The Declaration shall be
deemed to be specifically described in this GUARANTEE Agreement for the purposes
of clause (i) of the first proviso contained in Section 310(b) of the Trust
Indenture Act.

                                  ARTICLE III

                 Powers, Duties and Rights of Guarantee Trustee

                  SECTION 3.01. Powers and Duties of the GUARANTEE Trustee. (a)
This GUARANTEE Agreement shall be held by the GUARANTEE Trustee in trust for the
benefit of the Holders of the Preferred Securities. The GUARANTEE Trustee shall
not transfer its right, title and interest in the GUARANTEE Agreement to any
Person except a Successor GUARANTEE Trustee on acceptance by such Successor
GUARANTEE Trustee of its appointment to act as GUARANTEE Trustee or to a Holder
of Preferred Securities exercising his or her rights pursuant
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to Section 5.04. The right, title and interest of the GUARANTEE Trustee to the
GUARANTEE Agreement shall vest automatically in each Person who may hereafter be
appointed as GUARANTEE Trustee in accordance with Article IV. Such vesting and
cessation of title shall be effective whether or not conveyancing documents have
been executed and delivered.

                  (b) If an Event of Default occurs and is continuing, the
GUARANTEE Trustee shall enforce this GUARANTEE Agreement for the benefit of the
Holders of the Preferred Securities.

                  (c) This GUARANTEE Agreement and all moneys received by the
Property Trustee hereunder in respect of the GUARANTEE Payments will not be
subject to any right, charge, security interest, lien or claim of any kind in
favor of, or for the benefit of the GUARANTEE Trustee or its agents or their
creditors.

                  (d) The GUARANTEE Trustee shall, within 90 days after the
occurrence of an Event of Default, transmit by mail, first class postage
prepaid, to the holders of the Preferred Securities, as their names and
addresses appear upon the register, notice of all Events of Default known to the
GUARANTEE Trustee, unless such defaults shall have been cured before the giving
of such notice; provided, that, the GUARANTEE Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or Responsible Officers, of the
GUARANTEE Trustee in good faith determine that the withholding of such notice
is in the interests of the Holders of the Preferred Securities. The GUARANTEE
Trustee shall not be deemed to have knowledge of any default except any default
as to which the GUARANTEE Trustee shall have received written notice or a
Responsible Officer charged with the administration of the GUARANTEE Agreement
shall have obtained written notice.

                  (e) The GUARANTEE Trustee shall not resign as a Trustee unless
a Successor GUARANTEE Trustee has been appointed and accepted that appointment
in accordance with Article IV.

                  SECTION 3.02. Certain Rights and Duties of the GUARANTEE
Trustee. (a) The GUARANTEE Trustee, before the occurrence of an Event of Default
and after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically
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set forth in this GUARANTEE Agreement, and no implied covenants shall be read
into this GUARANTEE Agreement against the GUARANTEE Trustee. In case an Event
of Default has occurred (that has not been cured or waived pursuant to Section
2.06(a)), the GUARANTEE Trustee shall exercise such of the rights and powers
vested in it by this GUARANTEE Agreement, and use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the
circumstances in this conduct of his or her own affairs.

                  (b) No provision of this GUARANTEE Agreement shall be
construed to relieve the GUARANTEE Trustee from liability for its own negligent
action, its own negligent failure to act or its own wilful 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 GUARANTEE
                  Trustee shall be determined solely by the express provisions
                  of this GUARANTEE Agreement, and the GUARANTEE Trustee shall
                  not be liable except for the performance of such duties and
                  obligations as are specifically set forth in this GUARANTEE
                  Agreement, and no implied covenants or obligations shall be
                  read into this GUARANTEE Agreement against the GUARANTEE
                  Trustee; and

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

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

                  (iii) the GUARANTEE Trustee shall not be liable with respect
         to any action take or omitted to be taken by it in good faith in
         accordance with the direction of the Holders of Preferred Securities as
         provided herein relating to the time, method and place of conducting
         any proceeding for any remedy available to the GUARANTEE Trustee, or
         exercising any trust or power conferred upon the GUARANTEE Trustee
         under this GUARANTEE Agreement; and

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

                       (c) Subject to the provisions of Section 3.02(a) and (b).

                  (i) whenever in the administration of this GUARANTEE
         Agreement, the GUARANTEE Trustee shall deem it desirable that a matter
         proved or established prior to taking, suffering or omitting any action
         hereunder, the GUARANTEE Trustee (unless other evidence is herein
         specifically Prescribed) may, in the absence of bad faith on its part,
         request and rely upon a certificate, which shall comply with the
         provisions of Section 314(e) of the Trust Indenture Act, signed by any
         authorized officer of the Guarantor;

                  (ii) the GUARANTEE Trustee (A) may consult with counsel of its
         choice (which may be counsel to the Guarantor or any of its Affiliates
         and may include any of its employees) selected by it in good faith and
         with due care and the written advice or opinion of such counsel with
         respect to legal matters shall be full and complete authorization and
         protection in respect of any action taken, suffered or omitted by it
         hereunder in good faith and in reliance thereon and in accordance with
         such advice and opinion and (B) shall have the
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         right at any time to seek instructions concerning the administration of
         this GUARANTEE Agreement from any court of competent jurisdiction;

                  (iii) the GUARANTEE 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 GUARANTEE Trustee shall not
         be responsible for any misconduct or negligence on the part of any
         agent or attorney appointed by it in good faith and with due care;

                  (iv) the GUARANTEE Trustee shall be under no obligation to
         exercise any of the rights or powers vested in it by this GUARANTEE
         Agreement at the request or direction of any Holders of Preferred
         Securities, unless such Holders shall have offered to the GUARANTEE
         Trustee reasonable security and indemnity against the costs, expenses
         (including its attorneys' fees and expenses) and liabilities that might
         be incurred by it in complying with such request or direction; provided
         that nothing contained in this clause (iv) shall relieve the GUARANTEE
         Trustee of the obligation, upon the occurrence of an Event of Default
         (which has not been cured or waived) to exercise such of the rights and
         powers vested in it by this GUARANTEE Agreement, and to use the same
         degree of care and skill in this exercise, as a prudent person would
         exercise or use under the circumstances in the conduct of his or her
         own affairs; and

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

                  SECTION 3.03. Not Responsible for Recitals or Issuance of
Guarantee. The recitals contained in this GUARANTEE shall be taken as the
statements of the Guarantor and the GUARANTEE Trustee does not assume any
responsibility for their correctness. The GUARANTEE Trustee makes no
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representations as to the validity or sufficiency of this GUARANTEE Agreement.

                                   ARTICLE IV

                                Guarantee Trustee

                  SECTION 4.01. Qualifications. (a) There shall at all times be
a GUARANTEE Trustee which shall:

                  (i) not be an Affiliate of the Guarantor; and

                  (ii) be a corporation organized and doing business under the
         laws of the United States of America or any State or Territory thereof
         or of the District of Columbia, or a corporation or Person permitted by
         the Commission to act as an institutional trustee under the Trust
         Indenture Act, 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 corporation
         publishes reports of condition at least annually, pursuant to law or to
         the requirements of the supervising or examining authority referred to
         above, then for the purposes of this Section 4.01(a)(ii), the combined
         capital and surplus of such corporation shall be deemed to be its
         combined capital and surplus as set forth in its most recent report of
         condition so published.

                  If at any time the GUARANTEE Trustee shall cease to satisfy
the requirements of clauses (i) - (ii) above, the GUARANTEE Trustee shall
immediately resign in the manner and with the effect set out in Section 4.02. If
the GUARANTEE Trustee has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the Trust Indenture Act, the GUARANTEE Trustee and
the Guarantor shall in all respects comply with the provisions of Section 310(b)
of the Trust Indenture Act.

                  SECTION 4.02. Appointment, Removal and Resignation of
GUARANTEE Trustee. (a) Subject to Section 4.02(b), the GUARANTEE Trustee may be
appointed or removed without cause at any time by the Guarantor.
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                  (b) The GUARANTEE Trustee shall not be removed in accordance
with Section 4.02(a) until a Successor GUARANTEE Trustee possessing the
qualifications to act as GUARANTEE Trustee under Section 4.01(a) has been
appointed and has accepted such appointment by written instrument executed by
such Successor GUARANTEE Trustee and delivered to the Guarantor and the
GUARANTEE Trustee being removed.

                  (c) The GUARANTEE Trustee appointed to office shall hold
office until his successor shall have been appointed or until its removal or
resignation.

                  (d) The GUARANTEE Trustee may resign from office (without need
for prior or subsequent accounting) by an instrument (a "Resignation Request")
in writing signed by the Guarantee Trustee and delivered to the Guarantor, which
resignation shall take effect upon such delivery or upon such later date as is
specified therein; provided, however, that no such resignation of the GUARANTEE
Trustee shall be effective until a Successor GUARANTEE Trustee possessing the
qualifications to act as GUARANTEE Trustee under Section 4.01(a) has been
appointed and has accepted such appointment by instrument executed by such
Successor GUARANTEE Trustee and delivered to Guarantor and the resigning
GUARANTEE Trustee.

                  (e) If no Successor GUARANTEE Trustee shall have been
appointed and accepted appointed as provided in this Section 4.02 within 60 days
after delivery to the Guarantor of a Resignation Request, the resigning
GUARANTEE Trustee may petition any court of competent jurisdiction for
appointment of a Successor GUARANTEE Trustee. Such court may thereupon after
such notice, if any, as it may deem proper and prescribe, appoint a Successor
GUARANTEE Trustee.

                                    ARTICLE V

                                    Guarantee

                  SECTION 5.01. Guarantee. The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the GUARANTEE Payments
(without duplication of amounts theretofore paid by the Issuer) regardless of
any defense, right of set-off or counterclaim which the Issuer may have or
assert. The Guarantor's obligation to make a GUARANTEE Payment may be satisfied
by direct payment of the
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required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.

                  SECTION 5.02. Waiver of Notice. The Guarantor hereby waives
notice of acceptance of this GUARANTEE Agreement and of any liability to which
it applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Issuer or any other Person before proceeding
against the Guarantor, protect, notice of nonpayment, notice of dishonor, notice
of redemption and all other notices and demands.

                  SECTION 5.03. Obligations Not Affected. The obligations,
covenants, agreements and duties of the Guarantor under this GUARANTEE Agreement
shall in no way be affected or impaired by reason of the happening from time to
time of any of the following:

                  (a) the release or waiver, by operation of law or otherwise,
         of the performance or observance by the Issuer of any express or
         implied agreement, covenant, term or condition relating to the
         Preferred Securities to be performed or observed by the Issuer;

                  (b) the extension of time for the payment by the Issuer of all
         or any portion of the Distributions (other than an extension of time
         for payment of Distributions that results from the extension of any
         interest payment period on the Debentures), Redemption Price,
         Liquidation Distribution (as defined in the Declaration) or any other
         sums payable under the terms of the Preferred Securities or the
         extension of time for the performance of any other obligation under,
         arising out of, or in connection with, the Preferred Securities;

                  (c) any failure, omission, delay or lack of diligence on the
         part of the Holders to enforce, assert or exercise any right,
         privilege, power or remedy conferred on the Holders pursuant to the
         terms of the Preferred Securities, or any action on the part of the
         Issuer granting indulgence or extension of any kind;

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

                  (e) any invalidity of, or defect or deficiency in, the
         Preferred Securities;

                  (f) the settlement or compromise of any obligation guaranteed
         hereby or hereby incurred; or

                  (g) any other circumstances whatsoever that might otherwise
         constitute a legal or equitable discharge or defense of a guarantor, it
         being the intent of this Section 5.03 that the obligations of the
         Guarantor hereunder shall be absolute and unconditional under any and
         all circumstances.

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

                  SECTION 5.04. Enforcement of Guarantee. The Guarantor and the
GUARANTEE Trustee expressly acknowledge that (i) this Guarantee Agreement will
be deposited with the GUARANTEE Trustee to be held for the benefit of the
Holders; (ii) the GUARANTEE Trustee has the right to enforce this GUARANTEE
Agreement on behalf of the Holders; (iii) Holders representing not less than a
Majority in liquidation amount of the Preferred Securities have the right to
direct the time, method and place of conducting any proceeding for any remedy
available in respect of this GUARANTEE Agreement including the giving of
directions to the GUARANTEE Trustee, or exercising any trust or other power
conferred upon the GUARANTEE Trustee under this GUARANTEE Agreement, and (iv) if
the GUARANTEE Trustee fails to enforce this GUARANTEE Agreement, any Holder of
Preferred Securities may institute a legal proceeding directly against the
Guarantor to enforce its rights under this GUARANTEE Agreement, without first
instituting a legal proceeding against the Issuer, the GUARANTEE Trustee, or any
other Person.

                  SECTION 5.05. GUARANTEE of Payment. This GUARANTEE Agreement
creates a GUARANTEE of payment and not merely of collection. This GUARANTEE
Agreement will not be discharged except by payment of the GUARANTEE Payments
in full (without duplication of amounts theretofore paid by the Issuer).
<PAGE>   17
                                                                              17

                  SECTION 5.06. Subrogation. The Guarantor shall be subrogated
to all (if any) rights of the Holders against the Issuer in respect of any
amounts paid to the Holders by the Guarantor under this GUARANTEE Agreement;
provided, however, that the Guarantor shall not (except to the extent required
by mandatory provisions of law) be entitled to enforce or exercise any rights
which it may acquire by way of subrogation or any indemnity, reimbursement or
other agreement, in all cases as a result of payment under this GUARANTEE
Agreement, if, at the time of any such payment, any amounts are due and unpaid
under this GUARANTEE Agreement. If any amount shall be paid to the Guarantor in
violation of the preceding sentence, the Guarantor agrees to hold such amount in
trust for the Holders and to pay over such amount to the Holders.

                  SECTION 5.07. Independent Obligations. The Guarantor
acknowledges that its obligations hereunder are independent of the obligations
of the Issuer with respect to the Preferred Securities and that the Guarantor
shall be liable as principal and as debtor hereunder to make GUARANTEE Payments
pursuant to the terms of this GUARANTEE Agreement notwithstanding the occurrence
of any event referred to in subsections (a) through (g), inclusive, of Section
5.03 hereof.

                                   ARTICLE VI

                    Limitation of Transactions; Subordination

                  SECTION 6.01. Limitation of Transactions. So long as any
Preferred Securities remain outstanding, the Guarantor will not declare or pay
dividends on, or redeem, purchase, acquire or make a distribution or liquidation
payment with respect to, any of its common stock or preferred stock or make any
GUARANTEE payment with respect thereto if at such time (i) the Guarantor shall
be in default with respect to its GUARANTEE Payments or other payment
obligations hereunder, (ii) there shall have occurred any event of default under
the Declaration or (iii) the Guarantor shall have given notice of its selection
of a Deferral Period (as defined in the Indenture) and such period, or any
extension thereof, is continuing; provided, however, that the foregoing
restrictions shall not apply to (i) dividends, redemptions, purchases,
acquisitions, distributions or payments made by the Guarantor by way of issuance
of shares of its capital stock, (ii) payments of
<PAGE>   18
                                                                              18

accrued dividends by the Guarantor upon the redemption, exchange or conversion
of any preferred stock of the Guarantor as may be outstanding from time to time
in accordance with the terms of such preferred stock, (iii) cash payments made
by the Guarantor in lieu of delivering fractional shares upon the redemption,
exchange or conversion of any preferred stock of the Guarantor as may be
outstanding from time to time in accordance with the terms of such preferred
stock, (iv) repurchases, redemptions or other acquisitions of shares of capital
stock of the Guarantor in connection with any employment contract, benefit plan
or other similar arrangement with or for the benefit of employees, officers,
directors of consultants, or (v) any declaration of a dividend in connection
with the implementation of a stockholders' rights plan, or the issuance of stock
under any such plan in the future, or the redemption or repurchase of such
rights pursuant thereto. In addition, so long as any Preferred Securities remain
outstanding, the Guarantor (i) will remain the sole direct or indirect owner of
all of the outstanding Common Securities and shall not cause or permit the
Common Securities to be transferred except to the extent such transfer is
permitted under Section 9.01(c) of the Declaration; provided that any permitted
successor of the Guarantor under the Indenture may succeed to the Guarantor's
ownership of the Common Securities and (ii) will use reasonable efforts to cause
the Issuer to continue to be treated as a grantor trust for United States
Federal income tax purposes except in connection with a distribution of
Debentures as provided in the Declaration.

                  SECTION 6.02. Subordination. This GUARANTEE Agreement will
constitute an unsecured obligation of the Guarantor and will rank (i)
subordinate and junior in right of payment to all other liabilities of the
Guarantor, including the Debentures, except those made pari passu or subordinate
by their terms, and (ii) senior to all capital stock now or hereafter issued by
the Guarantor and to any GUARANTEE now or hereafter entered into by the
Guarantor in respect of any of its capital stock. The Guarantor's obligations
under this GUARANTEE Agreement will rank pari passu with respect to obligations
under other GUARANTEE agreements which it may enter into from time to time to
the extent that such agreements shall be entered into in substantially the form
hereof and provided for comparable guarantees by the Guarantor of payment on
preferred securities issued by other JPM Capital Trusts.
<PAGE>   19
                                                                              19

                                   ARTICLE VII

                                   Termination

                  SECTION 7.01. This GUARANTEE Agreement shall terminate and be
of no further force and effect upon full payment of the Redemption Price of all
Preferred Securities, or upon the distribution of Debentures to Holders of
Preferred Securities and Common Securities in exchange for all of the Preferred
Securities and Common Securities, or upon full payment of the amounts payable in
accordance with the Declaration upon liquidation of the Issuer. Notwithstanding
the foregoing, the GUARANTEE Agreement will continue to be executive or will be
reinstated, as the case may be, if at any time any Holder must restore payment
of any sums paid with respect to the Preferred Securities or this GUARANTEE
Agreement.

                                  ARTICLE VIII

                    Limitation of Liability; Indemnification

                  SECTION 8.01. Exculpation. (a) No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Guarantor or
any Covered Person for any loss, damage or claim incurred by reason of any act
or omission performed or omitted by such Indemnified Person in good faith and in
a manner such Indemnified Person reasonably believed to be within the scope of
the authority conferred on such Indemnified Person by this GUARANTEE Agreement
or by law, except that an Indemnified Person shall be liable for any such loss,
damage or claim incurred by reason of such Indemnified Person's negligence or
wilful misconduct with respect to such acts; or omissions.

                  (b) An Indemnified Person shall be fully protected in relying
in good faith upon the records of the Guarantor and upon such information,
opinions, reports or statements presented to the Guarantor by any Person as to
matters the Indemnified Person reasonably believes are within such other
Person's professional or expert competence and who has been selected with
reasonable care by or on behalf of the Guarantor, including information,
opinions, reports or statements as to the value and amount of the assets,
liabilities, profits, losses, or any other facts pertinent to the existence and
amounts of assets from which
<PAGE>   20
                                                                              20

Distributions to Holders of Preferred Securities might properly be paid.

                  SECTION 8.02. Indemnification. (a) To the fullest extent
permitted by applicable law, the Guarantor shall indemnify and hold harmless
each Indemnified Person from and against any loss, damage or claim incurred by
such Indemnified Person by reason of any act or omission performed or omitted by
such Indemnified Person in good faith and in a manner such Indemnified Person
reasonably believed to be within the scope of authority conferred on such
Indemnified Person by this GUARANTEE Agreement, except that no Indemnified
Person shall be entitled to be indemnified in respect of any loss, damage or
claim incurred by such Indemnified Person by reason of negligence or wilful
misconduct with respect to such acts or omissions.

                  (b) To the fullest extent permitted by applicable law,
expenses (including legal fees) incurred by an Indemnified Person in defending
any claim, demand, action, suit or proceeding shall, from time to time, be
advanced by the Guarantor prior to the final disposition of such claim, demand,
action, suit or proceeding upon receipt by the Guarantor of an undertaking by or
on behalf of the Indemnified Person to repay such amount if it shall be
determined that the Indemnified Person is not entitled to be indemnified as
authorized in Section 8.02(a).

                                   ARTICLE IX

                                  Miscellaneous

                  SECTION 9.01. Successors and Assigns. All guarantees and
agreements contained in this GUARANTEE Agreement shall bind the successors,
assignees, receivers, trustees and representatives of the Guarantor and shall
inure to the benefit of the Holders of the Preferred Securities then
outstanding. Except in connection with a consolidation, merger or sale involving
the Guarantor that is permitted under Article Ten of the Indenture, the
Guarantor shall not assign its obligations hereunder.

                  SECTION 9.02. Amendments. Except with respect to any changes
which do not adversely affect the rights of Holders (in which case no consent of
Holders will be required), this GUARANTEE Agreement may only be amended with the
prior approval of the Holders of not less than 66-2/3% in
<PAGE>   21
                                                                              21

liquidation amount of the Preferred Securities. The provisions of Section 12.02
of the Declaration concerning meetings of Holders shall apply to the giving of
such approval.

                  SECTION 9.03 Notices. Any notice, request or other
communication required or permitted to be given hereunder shall be in writing,
duly signed by the party giving such notice, and delivered, telecopied or mailed
by first class mail as follows:

                  (a) if given to the Guarantor, to the address set forth below
         or such other address as the Guarantor may give notice of to the
         Holders:

                       J.P. Morgan & Co. Incorporated
                       60 Wall Street
                       New York, New York 10260-0060
                       Facsimile No.: (212) 648-5175
                       Attention: Assistant Secretary

                  (b) if given to the GUARANTEE Trustee, to the address set
         forth below or such other address as the GUARANTEE Trustee may give
         notice to the Holders:

                       First Trust of New York, National Association
                       100 Wall Street
                       Suite 1600
                       New York, New York 10005
                       Facsimile No.: (212) 809-5459
                       Attention: Corporate Trust Administration

                  (c) if given to any Holder of Preferred Securities, at the
         address set forth on the books and records of the Issuer.

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

                  SECTION 9.04. Genders. The masculine, feminine and neuter
genders used herein shall include the masculine, feminine and neuter genders.
<PAGE>   22
                                                                              22

                  SECTION 9.05. Benefit. This GUARANTEE Agreement is solely for
the benefit of the Holders and subject to Section 3.01(a) is not separately
transferable from the Preferred Securities.

                  SECTION 9.06. Governing Law. THIS GUARANTEE AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS).

                  SECTION 9.07. Counterparts. This GUARANTEE Agreement may be
executed in counterparts, each of which shall be an original; but such
counterparts shall together constitute one and the same instrument.

                  SECTION 9.08. Exercise of Overallotment Option. If and to the
extent that Preferred Securities are issued by the Issuer upon exercise of the
overallotment option referred to the second WHEREAS clause, the Guarantor agrees
to give prompt notice thereof to the GUARANTEE Trustee but the failure to give
such notice shall not relieve the Guarantor of any of its obligations hereunder.

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

                                           J.P. MORGAN & CO.
                                           INCORPORATED,

                                           by /s/ Gene A. Capello
                                              ----------------------------------
                                              Name:
                                              Title

                                           FIRST TRUST OF NEW YORK,
                                           NATIONAL ASSOCIATION, as
                                           GUARANTEE Trustee,

                                           by /s/ DAVID LEVERICH
                                              ----------------------------------
                                              Name:  DAVID LEVERICH
                                              Title: VICE PRESIDENT
<PAGE>   23
                                                                              23

STATE OF NEW YORK                   )
                                    )
COUNTY OF NEW YORK                  )

                  BEFORE ME, the undersigned authority, on this day of December
4, 1996, personally appeared Gene A. Capello of J.P. Morgan & Co. Incorporated,
known to me (or proved to me by introduction upon the oath of a person known to
me) to be the person and officer whose name is subscribed to the foregoing
instrument, and acknowledged to me that he/she executed the same as the act of
such trust for the purposes and consideration herein expressed and in the
capacity therein stated.

                  GIVEN UNDER MY HAND AND SEAL THIS 4TH DAY OF DECEMBER, 1996.

(SEAL)

                                              /s/  Marion I. Pearson
                                              ----------------------------------
                                              NOTARY PUBLIC, STATE OF NEW YORK
                                              Print Name: Marion I. Pearson
                                              Commission Expires: 3/19/98
<PAGE>   24
                                                                              24

STATE OF NEW YORK                   )
                                    )
COUNTY OF NEW YORK                  )

                  BEFORE ME, the undersigned authority, on this day of December
3, 1996, personally appeared DAVID LEVERICH of First Trust of New York, National
Association, known to me (or proved to me by introduction upon the oath of a
person known to me) to be the person and officer whose name is subscribed to the
foregoing instrument, and acknowledged to me that he/she executed the same as
the act of such trust for the purposes and consideration herein expressed and in
the capacity therein stated.

                  GIVEN UNDER MY HAND AND SEAL THIS 3RD DAY OF December, 1996.

{SEAL}

                                              /s/ Joanne E. Ilse
                                              ----------------------------------
                                              NOTARY PUBLIC, STATE OF NEW YORK
                                              Print Name: Joanne E. Ilse
                                              Commission Expires: 10/4/97

                                                        JOANNE E. ILSE
                                               Notary Public, State of New York
                                                        No. 01IL5018680
                                                  Qualified in Queens County
                                              Commission Expires October 4, 1997<PAGE>   1

                                                                  EXHIBIT 4.9(c)

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                               JPM CAPITAL TRUST I

                          DATED AS OF DECEMBER 4, 1996
<PAGE>   2
                               TABLE OF CONTENTS*

                                                                           Page

PARTIES ..................................................................   1

RECITALS .................................................................   1

                                    ARTICLE I

                                   Definitions

SECTION 1.01    Certain terms defined; other terms
                    defined in the Trust Indenture Act of
                    1939, as amended, or by reference
                    therein in the Securities Act of
                    1933, as amended, to have the
                    meanings assigned therein ............................   2

                Affiliate ................................................   2
                Book Entry Interest ......................................   3
                Business Day .............................................   3
                Business Trust Act .......................................   3
                Certificate ..............................................   3
                Certificate of Trust .....................................   3
                Clearing Agency ..........................................   3
                Clearing Agency Participant ..............................   3
                Closing Date .............................................   3
                Code .....................................................   3
                Commission ...............................................   4
                Common Securities ........................................   4
                Common Security Certificate...............................   4
                Covered Person ...........................................   4
                Debenture Trustee ........................................   4
                Debentures ...............................................   4
                Definitive Preferred Security Certificates ...............   4
                Delaware Trustee .........................................   4
                Depositary Agreement .....................................   4

     * This Table of Contents does not constitute part of the Amended and
Restated Declaration of Trust and should not have any bearing upon the
interpretation of any of its terms or provisions.
<PAGE>   3
                                                                Contents p.   2

                                                                           Page

Distribution .............................................................   4
DTC ......................................................................   4
Event of Default .........................................................   4
Exchange Act .............................................................   5
Fiscal Year ..............................................................   5
Global Certificate .......................................................   5
Holder ...................................................................   5
Indemnified Person .......................................................   5
Indenture ................................................................   5
Indenture Event of Default ...............................................   5
Investment Company .......................................................   5
Investment Company Act ...................................................   5
Legal  Action ............................................................   5
Liquidation Distribution .................................................   5
Majority in liquidation amount of the Securities .........................   6
Ministerial Action .......................................................   6
Option Closing Date ......................................................   6
Original Declaration .....................................................   6
Paying Agent .............................................................   6
Person ...................................................................   6
Preferred Guarantee ......................................................   6
Preferred Securities .....................................................   6
Preferred Security Beneficial Owner ......................................   6
Preferred Security Certificate ...........................................   7
Property Account .........................................................   7
Property Trustee .........................................................   7
Quorum ...................................................................   7
Regular Trustee ..........................................................   7
Related Party ............................................................   7
Resignation Request ......................................................   7
Responsible Officer ......................................................   7
Rule 3a-7 ................................................................   7
Securities ...............................................................   7
Securities Act ...........................................................   7
66-2/3% in liquidation amount of the Securities ..........................   8
Special Event ............................................................   8
Sponsor or JPM ...........................................................   8
Successor Delaware Trustee ...............................................   8
Successor Property Trustee ...............................................   8
10% in liquidation amount of the Securities ..............................   8
Treasury Regulations .....................................................   9
Trust Indenture Act ......................................................   9
Trustee or Trustees ......................................................   9
Underwriting Agreement ...................................................   9
<PAGE>   4
                                                                   Contents p. 3

                                                                          Page

                                   ARTICLE II

                              Trust Indenture Act

SECTION 2.01     Trust Indenture Act; Application .......................   9
SECTION 2.02     List of Holders of Preferred Securities ................  10
SECTION 2.03     Reports by the Property Trustee ........................  10
SECTION 2.04     Periodic Reports to Property Trustee ...................  10
SECTION 2.05     Evidence of Compliance with Conditions Precedent .......  10
SECTION 2.06     Events of Default; Waiver ..............................  10
SECTION 2.07     Disclosure of Information ..............................  13

                                   ARTICLE III

                                  Organization

SECTION 3.01     Name ...................................................  13
SECTION 3.02     Office .................................................  13
SECTION 3.03     Issuance of the Trust Securities .......................  14
SECTION 3.04     Purchase of Debentures .................................  14
SECTION 3.05     Purpose ................................................  14
SECTION 3.06     Authority ..............................................  15
SECTION 3.07     Title to Property of the Trust .........................  15
SECTION 3.08     Powers and Duties of the Regular Trustees ..............  15
SECTION 3.09     Prohibition of Actions by Trust and Trustees ...........  19
SECTION 3.10     Powers and Duties of the Property Trustee ..............  20
SECTION 3.11     Delaware Trustee .......................................  23
SECTION 3.12     Certain Rights and Duties of the Property Trustee ......  23
SECTION 3.13     Registration Statement and Related Matters .............  27
SECTION 3.14     Filing of Amendments to Certificate of Trust ...........  28
SECTION 3.15     Execution of Documents by Regular Trustees .............  28
SECTION 3.16     Trustees Not Responsible for Recitals or Issuance
                 of Securities ..........................................  29
SECTION 3.17     Duration of Trust ......................................  29
<PAGE>   5
                                                                   Contents p. 4

                                                                          Page

                                   ARTICLE IV

                                     Sponsor

SECTION 4.01     Purchase of Common Securities by Sponsor ...............  29
SECTION 4.02     Expenses ...............................................  29

                                   ARTICLE V

                                    Trustees

SECTION 5.01     Number of Trustees; Qualifications .....................  30
SECTION 5.02     Appointment, Removal and Resignation of Trustees .......  33
SECTION 5.03     Vacancies Among Trustees ...............................  35
SECTION 5.04     Effect of Vacancies ....................................  35
SECTION 5.05     Meetings ...............................................  35
SECTION 5.06     Delegation of Power ....................................  36

                                   ARTICLE VI

                                  Distributions

SECTION 6.01     Distributions ..........................................  36

                                  ARTICLE VII

                             Issuance of Securities

SECTION 7.01     General Provisions Regarding Securities ................  37

                                  ARTICLE VIII

                              Termination of Trust

SECTION 8.01     Termination of Trust ...................................  39
<PAGE>   6
                                                                   Contents p. 5

                                                                           Page

                                   ARTICLE IX

                              Transfer of Interests

SECTION 9.01     Transfer of Securities ..................................  39
SECTION 9.02     Transfer of Certificates ................................  40
SECTION 9.03     Deemed Security Holders .................................  41
SECTION 9.04     Book Entry Interests ....................................  42
SECTION 9.05     Notices to Holders of Certificates ......................  42
SECTION 9.06     Appointment of Successor Clearing Agency ................  42

SECTION 9.07     Definitive Preferred Securities Certificates ............  42
SECTION 9.08     Mutilated, Destroyed, Lost or Stolen Certificates .......  43

                                   ARTICLE X

                    Limitation of Liability, Indemnification

SECTION 10.01    Exculpation .............................................  43
SECTION 10.02    Indemnification and Compensation ........................  44
SECTION 10.03    Outside Business ........................................  45

                                   ARTICLE XI

                                   Accounting

SECTION 11.01    Fiscal Year .............................................  46
SECTION 11.02    Certain Accounting Matters ..............................  46
SECTION 11.03    Banking .................................................  47
SECTION 11.04    Withholding .............................................  47

                                   ARTICLE XII

                            Amendments and Meetings

SECTION 12.01    Amendments ..............................................  48
SECTION 12.02    Meetings of the Holders of Securities;
                 Action by Written Consent ...............................  49
<PAGE>   7
                                                                  Contents p. 6
                                                                        Page
                                  ARTICLE XIII

                       Representations of Property Trustee
                              and Delaware Trustee

SECTION 13.01    Representations and Warranties of Property Trustee ....   51

                                   ARTICLE XIV

                                  Miscellaneous

SECTION 14.01    Notices ...............................................   52
SECTION 14.02    Undertaking for Costs .................................   54
SECTION 14.03    Governing Law .........................................   55
SECTION 14.04    Headings ..............................................   55
SECTION 14.05    Partial Enforceability ................................   55
SECTION 14.06    Counterparts ..........................................   55
SECTION 14.07    Intention of the Parties ..............................   55
SECTION 14.08    Successors and Assigns ................................   56

SIGNATURES AND SEALS ...................................................   56

EXHIBIT A      CERTIFICATE OF TRUST
EXHIBIT B      TERMS OF PREFERRED SECURITIES
EXHIBIT C      TERMS OF COMMON SECURITIES
<PAGE>   8
                              AMENDED AND RESTATED
                              DECLARATION OF TRUST
                                       OF
                               JPM CAPITAL TRUST I

                                DECEMBER 4, 1996

                           AMENDED AND RESTATED DECLARATION OF TRUST
                  ("Declaration"), dated and effective as of December 4, 1996,
                  by the undersigned trustees (together with all other Persons
                  from time to time duly appointed and serving as trustees in
                  accordance with the provisions of this Declaration, the
                  "Trustees"), J.P. Morgan & Co. Incorporated, a Delaware
                  corporation; as trust sponsor ("JPM" or the "Sponsor"), and
                  the holders, from time to time, of undivided beneficial
                  interests in the assets of the JPM Capital Trust I to be
                  issued pursuant to this Declaration.

         WHEREAS the Sponsor and the Trustees entered into a Declaration of
Trust dated as of October 29, 1996 (the "Original Declaration") in order to
establish JPM Capital Trust I, a statutory business trust (the "Trust") under
the Business Trust Act (as defined herein);

         WHEREAS the Certificate of Trust (the "Certificate of Trust") of the
Trust was filed with the office of the Secretary of State of the State of
Delaware on October 29, 1996;

         WHEREAS the Trustees and the Sponsor desire to continue the Trust
pursuant to the Business Trust Act for the purpose of, as described more fully
in Sections 3.03, 3.04 and 3.05 hereof, (i) issuing and selling Preferred
Securities (as defined herein) representing preferred undivided beneficial
interests in the assets of the Trust for cash and investing the proceeds thereof
in Debentures (as defined herein) of JPM issued under the Indenture (as defined
herein) to be held as assets of the Trust, (ii) issuing and selling Common
Securities (as defined herein) representing common undivided beneficial
interests in the assets of the Trust to JPM for cash and investing the
<PAGE>   9
                                                                               2

proceeds thereof in additional Debentures issued under the Indenture to be held
as assets of the Trust and (iii) engaging in such other activities as are
necessary, convenient or incidental thereto; and

         NOW, THEREFORE, it being the intention of the parties hereto that the
Trust constitute a business trust under the Business Trust Act, that the
Original Declaration be amended and restated in its entirety as provided herein
and that this Declaration constitute the governing instrument of such business
trust, the Trustees declare that all assets referred to in clauses (i) and (ii)
of the previous Whereas clause purchased by the Trust will be held in trust for
the benefit of the Holders (as defined herein) from time to time of the
Certificates (as defined herein) representing undivided beneficial interests in
the assets of the Trust issued hereunder, subject to the provisions of this
Declaration.

                                    ARTICLE I

                                   Definitions

         SECTION 1.01. Definitions. (a) Capitalized terms used in this
Declaration but not defined in the preamble above have the respective meanings
assigned to them in this Section 1.01; (b) a term defined anywhere in this
Declaration has the same meaning throughout; (c) all references to "the
Declaration" or "this Declaration" are to this Amended and Restated Declaration
of Trust (including Exhibits A, B and C hereto (the "Exhibits")) as modified,
supplemented or amended from time to time; (d) all references in this
Declaration to Articles and Sections and Exhibits are to Articles and Sections
of and Exhibits to this Declaration unless otherwise specified; (e) a term
defined in the Trust Indenture Act has the same meaning when used in this
Declaration unless otherwise defined in this Declaration or unless the context
otherwise requires; and (f) a reference to the singular includes the plural and
vice versa.

         "Affiliate" has the same meaning as given to that term in Rule 405 of
the Securities Act or any successor rule thereunder.
<PAGE>   10
                                                                               3

         "Book Entry Interest" means a beneficial interest in a Global
Certificate registered in the name of a Clearing Agency or a nominee thereof,
ownership and transfers of which shall be maintained and made through book
entries by such Clearing Agency as described in Section 9.04.

         "Business Day" means any day other than a Saturday, Sunday or any other
day on which banking institutions in New York, New York are authorized or
required by law to close.

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

         "Certificate" means a Common Security Certificate or a Preferred
Security Certificate.

         "Certificate of Trust" has the meaning set forth in the second Whereas
clause above.

         "Clearing Agency" means an organization registered as a "Clearing
Agency" pursuant to Section 17A of the Exchange Act that is acting as depository
for the Preferred Securities and in whose name, or in the name of a nominee of
that organization, shall be registered a Global Certificate and which shall
undertake to effect book entry transfers and pledges of the Preferred
Securities.

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

         "Closing Date" means the Closing Date as specified in the Underwriting
Agreement, which date is also the date of execution and delivery of this
Declaration.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation. A reference to a specific section of the
Code refers not only to such specific section but also to any corresponding
provision of any Federal tax statute enacted after the date of this Declaration,
as such specific section or corresponding provision is in effect on the date of
application of the provisions of this Declaration containing such reference.
<PAGE>   11
                                                                               4

         "Commission" means the Securities and Exchange Commission.

         "Common Securities" has the meaning specified in Section 7.01(b).

         "Common Security Certificate" means a definitive certificate in fully
registered form representing a Common Security substantially in the form of
Annex I to Exhibit C.

         "Covered Person" means (i) any officer, director, shareholder, partner,
member, representative, employee or agent of the Trust or its Affiliates, (ii)
any officer, director, shareholder, employee, representative or agent of JPM or
any of its Affiliates and (iii) the Holders from time to time of the Securities.

         "Debenture Trustee" means First Trust of New York, National
Association, as trustee under the Indenture, until a successor, if any, is
appointed thereunder and thereafter means such successor trustee, who may also
be the Property Trustee.

         "Debentures" means the series of Junior Subordinated Debentures issued
by JPM under the Indenture to the Property Trustee and entitled the "7.54%
Junior Subordinated Debentures due 2027".

         "Definitive Preferred Security Certificates" has the meaning set forth
in Section 9.04.

         "Delaware Trustee" has the meaning set forth in Section 5.01(a)(3).

         "Depositary Agreement" means the agreement among the Trust, the
Property Trustee and DTC dated as of the Closing Date, as the same may be
amended or supplemented from time to time.

         "Distribution" means a distribution payable to Holders of Securities
in accordance with Section 6.01.

         "DTC" means The Depository Trust Company, the initial Clearing Agency.

         "Event of Default" in respect of the Securities means an Indenture
Event of Default has occurred and is continuing in respect of the Debentures.
<PAGE>   12
                                                                               5

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

         "Fiscal Year" has the meaning specified in Section 11.01.

         "Global Certificate" has the meaning set forth in Section 9.04.

         "Holder" means a Person in whose name a Certificate representing a
Security is registered, such Person being a beneficial owner within the meaning
of the Business Trust Act.

         "Indemnified Person" means any Trustee, any Affiliate of any
Trustee, any officer, director, shareholder, member, partner, employee,
representative or agent of any Trustee, or any employee or agent of the Trust or
any of its Affiliates.

         "Indenture" means the Indenture dated as of November 1, 1996 between
JPM and the Debenture Trustee, as supplemented by the First Supplemental
Indenture thereto dated as of December 4, 1996, pursuant to which the Debentures
are to be issued, as each may be amended or supplemented from time to time.

         "Indenture Event of Default" means an event or condition defined as an
"Event of Default" with respect to the Debentures under Section 6.01(a) of the
Indenture has occurred and is continuing.

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

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

         "Legal Action" has the meaning specified in Section 3.08(g).

         "Liquidation Distribution" has the meaning set forth in the terms of
the Securities as set forth in Exhibits B and C hereto.

<PAGE>   13

                                                                               6

                  "Majority in liquidation amount of the Securities" means,
except as otherwise required by the Trust Indenture Act and except as provided
in the penultimate paragraph of paragraph 5 of Exhibit B hereto, Holder(s) of
outstanding Securities voting together as a single class or, as the context may
require, Holder(s) of outstanding Preferred Securities or Common Securities
voting separately as a class, who are the record owners of a relevant class of
Securities whose liquidation amount (including the stated amount that would be
paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined)
represents more than 50% of the liquidation amount of all outstanding Securities
of such class.

                  "Ministerial Action" has the meaning set forth in Section 4(c)
of the terms of the Securities as set forth in Exhibits B and C hereto.

                  "Option Closing Date" means the Option Closing Date as
specified in the Underwriting Agreement.

                  "Original Declaration" has the meaning set forth in the first
Whereas clause above.

                  "Paying Agent" has the meaning specified in Section 3.10(i).

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

                  "Preferred Guarantee" means the Guarantee Agreement dated as
of December 4, 1996 of JPM in respect of the Preferred Securities.

                  "Preferred Securities" has the meaning specified in Section
7.01(b).

                  "Preferred Security Beneficial Owner" means, with respect to a
Book Entry Interest, a Person who is the beneficial owner of such Book Entry
Interest, as reflected on the books of the Clearing Agency, or on the books of a
Person maintaining an account with such Clearing Agency (directly as a
Clearing Agency Participant or as an indirect
<PAGE>   14
                                                                               7

participant, in each case in accordance with the rules of such Clearing Agency).

                  "Preferred Security Certificate" means a definitive
certificate in fully registered form representing a Preferred Security
substantially in the form of Annex I to Exhibit B.

                  "Property Account" has the meaning specified in Section
3.10(c)(i).

                  "Property Trustee" means the Trustee meeting the eligibility
requirements set forth in Section 5.01(c) and having the duties set forth for
the Property Trustee herein, who may also be the Debenture Trustee.

                  "Quorum" means a majority of the Regular Trustees or, if there
are only two Regular Trustees, both such Regular Trustees.

                  "Regular Trustee" means any Trustee other than the Property
Trustee or the Delaware Trustee.

                  "Related Party" means any direct or indirect wholly owned
subsidiary of JPM or any Person which owns, directly or indirectly, 100% of the
outstanding voting securities of JPM.

                  "Resignation Request" has the meaning specified in Section
5.02(d).

                  "Responsible Officer" means, with respect to the Property
Trustee, any officer of the Property Trustee with responsibility for the
administration of this Declaration and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of that officer's knowledge of, and familiarity with, the particular
subject.

                  "Rule 3a-7" means Rule 3a-7 under the Investment Company Act
or any successor rule thereunder.

                  "Securities" means the Common Securities and the Preferred
Securities.

                  "Securities Act" means the Securities Act of 1933, as amended
from time to time, or any successor legislation.
<PAGE>   15
                                                                               8

                  "66-2/3% in liquidation amount of the Securities" means,
except as otherwise required by the Trust Indenture Act and except as provided
in the penultimate paragraph of paragraph 5 of Exhibit B hereto, Holder(s) of
outstanding Securities voting together as a single class or, as the context may
require, Holder(s) of outstanding Preferred Securities or Common Securities,
voting separately as a class, who are the record owners of a relevant class of
Securities whose liquidation amount (including the stated amount that would be
paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined)
represents 66-2/3% or more of the liquidation amount of all outstanding
Securities of such class.

                  "Special Event" has the meaning set forth in Section 4(c) of
the terms of the Securities as set forth in Exhibits B and C hereto.

                  "Sponsor" or "JPM" means J.P. Morgan & Co. Incorporated, a
Delaware corporation, or any successor entity in a merger, consolidation or
other business combination transaction in its capacity as sponsor of the Trust.

                  "Successor Delaware Trustee" has the meaning specified in
Section 5.02(b)(ii).

                  "Successor Property Trustee" means a successor Trustee
possessing the qualifications to act as Property Trustee under Section 5.02(b)
(i).

                  "10% in liquidation amount of the Securities" means, except as
otherwise required by the Trust Indenture Act and except as provided in the
penultimate paragraph of paragraph 5 of Exhibit B hereto, Holder(s) of
outstanding Securities voting together as a single class or, as the context may
require, Holder(s) of outstanding Preferred Securities or Common Securities,
voting separately as a class, who are the record owners of a relevant class of
Securities whose liquidation amount (including the stated amount that would be
paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined)
represents 10% or more of the liquidation amount of all outstanding Securities
of such class.
<PAGE>   16
                                                                               9

                  "Treasury Regulations" means the income tax regulations,
including temporary and proposed regulations, promulgated under the Code by the
United States Treasury, as such regulations may be amended from time to time
(including corresponding provisions of succeeding regulations).

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

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

                  "Underwriting Agreement" means the Underwriting Agreement
dated December 4, 1996 among the Trust, the Sponsor and J.P. Morgan Securities,
Inc., as representative of the several underwriters named therein.

                                   ARTICLE II

                               Trust Indenture Act

                  SECTION 2.01. Trust Indenture Act; Application. (a) This
Declaration is subject to the provisions of the Trust Indenture Act that are
required to be part of this Declaration and shall, to the extent applicable, be
governed by such provisions; (b) if and to the extent that any provision of this
Declaration limits, qualifies or conflicts with the duties imposed by Sections
310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control; (c) for purposes of this Declaration, the Property Trustee, to the
extent permitted by applicable law and/or the rules and regulations of the
Commission, shall be the only Trustee which is a trustee for the purposes of the
Trust Indenture Act; and (d) the application of the Trust Indenture Act to this
Declaration shall not affect the nature of the Securities as equity securities
representing undivided beneficial interests in the assets of the Trust.
<PAGE>   17
                                                                              10

                  SECTION 2.02. Lists of Holders of Preferred Securities. (a)
Each of the Sponsor and the Regular Trustees on behalf of the Trust shall
provide the Property Trustee with such information as is required under Section
312(a) of the Trust Indenture Act at the times and in the manner provided in
Section 312(a); and (b) the Property Trustee shall comply with its obligations
under Sections 310(b), 311 and 312(b) of the Trust Indenture Act.

                  SECTION 2.03. Reports by the Property Trustee. Within 60 days
after May 15 of each year, the Property Trustee shall provide to the Holders of
the Securities such reports as are required by Section 313 of the Trust
Indenture Act, if any, in the form, in the manner and at the times provided by
Section 313 of the Trust Indenture Act. The Property Trustee shall also comply
with the requirements of Section 313(d) of the Trust Indenture Act.

                  SECTION 2.04. Periodic Reports to Property Trustee. Each of
the Sponsor and the Regular Trustees on behalf of the Trust shall provide to the
Property Trustee, the Commission and the Holders of the Securities, as
applicable, such documents, reports and information as required by Section
314(a)(1) - (3) (if any) of the Trust Indenture Act and the compliance
certificates required by Section 314(a)(4) and (c) of the Trust Indenture Act,
any such certificates to be provided in the form, in the manner and at the times
required by Section 314(a)(4) and (c) of the Trust Indenture Act (provided that
any certificate to be provided pursuant to Section 314(a)(4) of the Trust
Indenture Act shall be provided within 120 days of the end of each Fiscal Year).

                  SECTION 2.05. Evidence of Compliance with Conditions
Precedent. Each of the Sponsor and the Regular Trustees on behalf of the Trust
shall provide to the Property Trustee such evidence of compliance with any
conditions precedent, if any, provided for in this Declaration which relate to
any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given pursuant to Section 314(c) shall
comply with Section 314(e) of the Trust Indenture Act.

                  SECTION 2.06. Events of Default; Waiver. (a) Subject to
Section 2.06(c), Holders of Preferred Securities may, by vote of at least a
Majority in liquidation amount of the Preferred Securities, (A) in accordance
with the terms of the Preferred Securities, direct the time, method and place of
conducting any
<PAGE>   18
                                                                              11

proceeding for any remedy, available to the Property Trustee, or exercising any
trust or power conferred upon the Property Trustee, or (B) on behalf of the
Holders of all Preferred Securities, waive any past Event of Default in respect
of the Preferred Securities and its consequences; provided that, if the Event
of Default arises out of an Indenture Event of Default:

                  (i) which is not waivable under the Indenture, the Event of
         Default under this Declaration shall also be not waivable; or

                  (ii) which requires the consent or vote of (1) holders of
         Debentures representing a specified percentage greater than a majority
         in principal amount of the Debentures, or (2) each holder of
         Debentures, the Event of Default under this Declaration may only be
         waived by, in the case of clause (1) above, the vote of Holders of
         Preferred Securities representing such specified percentage of the
         aggregate liquidation amount of the Preferred Securities or, in the
         case of clause (2) above, each Holder of Preferred Securities.

Upon such waiver, any such default shall cease to exist, and any Event of
Default with respect to the Preferred Securities arising therefrom shall be
deemed to have been cured for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or Event of Default with
respect to the Preferred Securities or impair any right consequent thereto.

                  (b) Subject to Section 2.06 (c), Holders of Common Securities
may, by vote of at least a Majority in liquidation amount of the Common
Securities, (A) in accordance with the terms of the Common Securities, direct
the time, method and place of conducting any proceeding for any remedy available
to the Property Trustee, or exercising any trust or power conferred upon the
Property Trustee, or (B) on behalf of the Holders of all of the Common
Securities, waive any past Event of Default with respect to the Common
Securities and its consequences; provided that if the Event of Default arises
out of an Indenture Event of Default:

                  (i) which is not waivable under the Indenture, except where
         the Holders of the Common Securities are deemed to have waived such
         Event of Default under the
<PAGE>   19
                                                                              12

         Declaration as provided below, the Event of Default under this
         Declaration shall also not be waivable; or

                  (ii) which requires the consent or vote of (1) holders of
         Debentures representing a specified percentage greater than a majority
         in principal amount of the Debentures or (2) each holder of Debentures,
         except where the holders of the Common Securities are deemed to have
         waived such Event of Default under this Declaration as provided below,
         the Event of Default under this Declaration may only be waived by, in
         the case of clause (1) above, the vote of Holders of Common Securities
         representing such specified percentage of the aggregate liquidation
         amount of the Common Securities or, in the case of clause (2) above,
         each holder of Common Securities; and

provided further that each Holder of Common Securities will be deemed to have
waived any Event of Default with respect to the Common Securities and its
consequences until all Events of Default with respect to the Preferred
Securities have been cured, waived by the Holders of Preferred Securities as
provided in this Declaration or otherwise eliminated and until all Events of
Default with respect to the Preferred Securities have been so cured, waived or
otherwise eliminated, the Property Trustee will be deemed to be acting solely on
behalf of the Holders of the Preferred Securities and only the Holders of the
Preferred Securities will have the right to direct the Property Trustee in
accordance with the terms of this Declaration or the Securities. In the event
that an Event of Default with respect to the Preferred Securities is waived by
the Holders of Preferred Securities as provided in this Declaration, the Holders
of Common Securities agree that such waiver shall also constitute the waiver of
such Event of Default with respect to the Common Securities for all purposes
under this Declaration without any further act, vote or consent of the Holders
of the Common Securities. Subject to the foregoing provisions of this Section
2.06 (b), upon such waiver, any such default shall cease to exist and any Event
of Default with respect to the Common Securities arising therefrom shall be
deemed to have been cured for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or Event of Default with
respect to the Common Securities or impair any right consequent thereon.
<PAGE>   20
                                                                              13

                  (c) The right of any Holder of Securities to receive payment
of Distributions on the Securities in accordance with this Declaration and the
terms of the Securities set forth in Exhibits B and C on or after the
respective payment dates therefor, or to institute suit for the enforcement of
any such payment on or after such payment dates, shall not be impaired without
the consent of such Holder.

                  (d) As provided in the terms of the Securities set forth in
Exhibits B and C hereto, a waiver of an Indenture Event of Default by the
Property Trustee at the written direction of the Holders of the Preferred
Securities constitutes a waiver of the corresponding Event of Default under
this Declaration in respect of the Securities.

                  SECTION 2.07. Disclosure of Information. The disclosure of
information as to the names and addresses of the Holders of the Securities in
accordance with Section 312 of the Trust Indenture Act, regardless of the source
from which such information was derived, shall not be deemed to be a violation
of any existing law or any law hereafter enacted which does not specifically
refer to Section 312 of the Trust Indenture Act, nor shall the Property Trustee
be held accountable by reason of mailing any material pursuant to a request made
under Section 312(b) of the Trust Indenture Act.

                                   ARTICLE III

                                  Organization

                  SECTION 3.01. Name. The Trust continued by this Declaration is
named "JPM Capital Trust I" as such name may be modified from time to time by
the Regular Trustees following written notice to the Holders of Securities. The
Trust's activities may be conducted under the name of the Trust or any other
name deemed advisable by the Regular Trustees.

                  SECTION 3.02. Office. The address of the principal office of
the Trust is c/o J.P. Morgan & Co. Incorporated, 60 Wall Street, New York, New
York 10260-0060. Upon ten days' written notice to the Holders (a copy of such
notice to be sent to the Property Trustee and the Delaware Trustee), the Regular
Trustees may change the location of the Trust's principal office. The name of
the registered agent and office of the Trust in the State of Delaware is
<PAGE>   21
                                                                              14

Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890. At any time, the Regular Trustees may designate
another registered agent and/or registered office.

                  SECTION 3.03. Issuance of the Trust Securities. On November
26, 1996, the Sponsor, on behalf of the Trust and pursuant to the Original
Declaration, executed and delivered the Underwriting Agreement. On the Closing
Date and contemporaneously with the execution and delivery of this Declaration,
the Regular Trustees, on behalf of the Trust, shall execute and deliver (i) to
the underwriters named in the Underwriting Agreement, a Global Certificate,
registered in the name of the nominee of the initial Clearing Agency as
specified in Section 9.04, in an aggregate amount of 750,000 Preferred
Securities having an aggregate liquidation amount of $750,000,000, against
receipt of the aggregate purchase price of such Preferred Securities of
$750,000,000, and (ii) to the Sponsor, Common Securities Certificates,
registered in the name of the Sponsor, in an aggregate amount of 23,200 Common
Securities having an aggregate liquidation amount of $23,200,000, against
receipt of the aggregate purchase price of such Common Securities of
$23,200,000.

                  SECTION 3.04. Purchase of Debentures. On the Closing Date and
contemporaneously with the execution and delivery of this Declaration, the
Regular Trustees, on behalf of the Trust, shall purchase from the Sponsor with
the proceeds received by the Trust from the sale of the Securities on such date
pursuant to Section 3.03, at a purchase price of 100% of the principal amount
thereof, Debentures, registered in the name of the Property Trustee and having
an aggregate principal amount equal to $773,200,000, and, in satisfaction of the
purchase price for such Debentures, the Regular Trustee, on behalf of the Trust,
shall deliver or cause to be delivered to the Sponsor the sum of $773,200,000.

                  SECTION 3.05. Purpose. The exclusive purposes and functions of
the Trust are: (a)(i) to issue and sell Preferred Securities for cash and use
the proceeds of such sales to acquire from JPM Debentures issued under the
Indenture having an aggregate principal amount equal to the aggregate
liquidation amount of the Preferred Securities so issued and sold; (ii) to enter
into such agreements and arrangements as may be necessary in connection with the
sale of Preferred Securities to the initial purchasers thereof
<PAGE>   22
                                                                              15

(including the Underwriting Agreement) and to take all actions and exercise such
discretion as may be necessary or desirable in connection therewith and to file
such registration statements or make such other filings under the Securities
Act, the Exchange Act or state securities or "Blue Sky" laws as may be necessary
or desirable in connection therewith and the issuance of the Preferred
Securities; and (iii) to issue and sell Common Securities to JPM for cash and
use the proceeds of such sale to purchase as trust assets an equal aggregate
principal amount of Debentures issued under the Indenture; and (b) except as
otherwise limited herein, to engage in such other activities as are necessary,
convenient or incidental thereto. The Trust shall not borrow money, issue debt
or reinvest proceeds derived from investments, pledge any of its assets or, at
any time while the Securities are outstanding, otherwise undertake (or permit to
be undertaken) an activity that would result in or cause the Trust to be treated
as anything other than a grantor trust for United States federal income tax
purposes.

                  SECTION 3.06. Authority. Subject to the limitations provided
in this Declaration and to the specific duties of the Property Trustee, the
Regular Trustees shall have exclusive and complete authority to carry out the
purposes of the Trust. An action taken by the Regular Trustees in accordance
with their powers shall constitute the act of and serve to bind the Trust and an
action taken by the Property Trustee in accordance with its powers shall
constitute the act of and serve to bind the Trust. In dealing with the Trustees
acting on behalf of the Trust, no Person shall be required to inquire into the
authority of the Trustees to bind the Trust. Persons dealing with the Trust are
entitled to rely conclusively on the power and authority of the Trustees as set
forth in this Declaration.

                  SECTION 3.07. Title to Property of the Trust. Except as
provided in Section 3.10 with respect to the Debentures and the Property Account
or unless otherwise provided in this Declaration, legal title to all assets of
the Trust shall be vested in the Trust. The Holders shall not have legal title
to any part of the assets of the Trust, but shall have an individual undivided
beneficial interest in the assets of the Trust.

                  SECTION 3.08. Powers and Duties of the Regular Trustees. The
Regular Trustees shall have the exclusive
<PAGE>   23
                                                                              16

power, authority and duty to cause the Trust, and shall cause the Trust, to
engage in the following activities:

                  (a) to issue Preferred Securities and Common Securities, in
         each case in accordance with this Declaration; provided, however, that
         the Trust may issue no more than one series of Preferred Securities and
         no more than one series of Common Securities; and provided further that
         there shall be no interests in the Trust other than the Securities and
         the issuance of Securities shall be limited to (x) a one-time,
         simultaneous issuance of both Preferred Securities and Common
         Securities on the Closing Date and (y) any subsequent issuance of both
         Preferred Securities and Common Securities on the Option Closing Date
         pursuant to an exercise of the overallotment option granted to the
         underwriters in the Underwriting Agreement;

                  (b) in connection with the issuance of the Preferred
         Securities, at the direction of the Sponsor, to effect or cause to be
         effected the filings, and to execute or cause to be executed the
         documents, set forth in Section 3.13 and to execute, deliver and
         perform on behalf of the Trust the Depositary Agreement;

                  (c) to acquire as trust assets Debentures with the proceeds of
         the sale of the Preferred Securities and Common Securities; provided,
         however, that the Regular Trustees shall cause all the Debentures to be
         held of record in the name of the Property Trustee for the benefit of
         the Holders of the Preferred Securities and the Common Securities;

                  (d) to cause the Trust to enter into such agreements and
         arrangements as may be necessary or desirable in connection with the
         sale of Preferred Securities to the initial purchasers thereof and the
         consummation thereof, and to take all action, and exercise all
         discretion, as may be necessary or desirable in connection with the
         consummation thereof;

                  (e) to give the Sponsor and the Property Trustee prompt
         written notice of the occurrence of a Special Event; provided that the
         Regular Trustees shall consult with the Sponsor and the Property
         Trustee before taking or refraining to take any Ministerial Action in
         relation to a Special Event;
<PAGE>   24
                                                                              17

                  (f) to establish a record date with respect to all actions to
         be taken hereunder that require a record date be established, including
         for the purposes of Section 316(c) of the Trust Indenture Act and with
         respect to Distributions, voting rights, redemptions and exchanges, and
         to issue relevant notices to Holders of the Preferred Securities and
         the Common Securities as to such actions and applicable record dates;

                  (g) to bring or defend, pay, collect, compromise, arbitrate,
         resort to legal action or otherwise adjust claims or demands of or
         against the Trust ("Legal Action"), unless, pursuant to Section
         3.10(e), the Property Trustee has the exclusive power to bring such
         Legal Action;

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

                  (i) to cause the Trust to comply with the Trust's obligations
         under the Trust Indenture Act;

                  (j) to give the certificate to the Property Trustee required
         by Section 314(a)(4), of the Trust Indenture Act, which certificate
         may be executed by any Regular Trustee;

                  (k) to incur expenses which are necessary or incidental to
         carrying out any of the purposes of the Trust;

                  (1) to act as, or appoint another Person to act as, registrar
         and transfer agent for the Securities, the Regular Trustees hereby
         initially appointing the Property Trustee for such purposes;

                  (m) to take all actions and perform such duties as may be
         required of the Regular Trustees pursuant to the terms of the
         Securities set forth in Exhibits B and C hereto;

                  (n) to execute all documents or instruments, perform all
         duties and powers and do all things for and on behalf of the Trust in
         all matters necessary, convenient or incidental to the foregoing;
<PAGE>   25
                                                                              18

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

                   (p) to take all action, not inconsistent with this
         Declaration or with applicable law, which the Regular
         Trustees determine in their discretion to be reasonable and necessary
         or desirable in carrying out the activities of the Trust as set out in
         this Section 3.08, in order that:

                           (i) the Trust will not be deemed to be an Investment
                  Company required to be registered under the Investment Company
                  Act;

                          (ii) the Trust will not be classified for United
                  States Federal income tax purposes as an association taxable
                  as a corporation or a partnership and will be treated as a
                  grantor trust for United States Federal income tax purposes;
                  and

                        (iii) the Trust will comply with any requirements
                  imposed by any taxing authority on holders of instruments
                  treated as indebtedness for United States Federal income tax
                  purposes;

         provided that such action does not adversely affect the interests of
         Holders;

                   (q) to take all action necessary to cause all applicable tax
         returns and tax information reports that are required to be filed with
         respect to the Trust to be duly prepared and filed by the Regular
         Trustees, on behalf of the Trust; and

                  (r) subject to the requirements of Rule 3a-7 and Section
         317(b) of the Trust Indenture Act, to appoint one or more Paying Agents
         in addition to the Property Trustee.

                  The Regular Trustees must exercise the powers set forth in
this Section 3.08 in a manner which is consistent with the purposes and
functions of the Trust set out in
<PAGE>   26
                                                                              19

Section 3.05 and the Regular Trustees shall not take any action which is
inconsistent with the purposes and functions of the Trust set forth in Section
3.05.

                  Subject to this Section 3.08, the Regular Trustees shall have
none of the powers nor any of the authority of the Property Trustee set forth in
Section 3.10.

                  SECTION 3.09. Prohibition of Actions by Trust and Trustees.
The Trust shall not, and the Trustees (including the Property Trustee) shall not
cause the Trust to, engage in any activity other than as required or authorized
by this Declaration. In particular, the Trust shall not, and the Trustees
(including the Property Trustee) shall not cause the Trust to:

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

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

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

                  (d) make any loans, other than loans represented by the
         Debentures;

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

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

                  (g) incur any indebtedness for borrowed money; or

                  (h) (i) direct the time, method and place of exercising any
         trust or power conferred upon the Debenture Trustee with respect to the
         Debentures, (ii) waive any past default that is waivable under Section
         6.06 of the Indenture, (iii) exercise any right to rescind or annul any
         declaration that the principal of all of the Debentures shall be due
         and payable or (iv) consent to any amendment, modification or
<PAGE>   27
                                                                              20

          termination of the Indenture or the Debentures, where such consent
          shall be required, unless in the case of this clause (h) the Property
          Trustee shall have received an unqualified opinion of nationally
          recognized independent tax counsel recognized as expert in such
          matters to the effect that such action will not cause the Trust to be
          classified for United States Federal income tax purposes as an
          association taxable as a corporation or partnership and that the Trust
          will continue to be classified as a grantor trust for United States
          federal income tax purposes.

                  SECTION 3.10. Powers and Duties of the Property Trustee. (a)
The Debentures shall be held of record in the name of the Property Trustee in
trust for the benefit of the Holders of the Securities. The right, title and
interest of the Property Trustee to the Debentures shall vest automatically in
each Person who may hereafter be appointed as Property Trustee in accordance
with Article V. Such vesting and cessation of title shall be effective whether
or not conveyancing documents have been executed and delivered.

                  (b) The Property Trustee shall not transfer its right, title
and interest in the Debentures to the Regular Trustees or, if the Property
Trustee does not also act as the Delaware Trustee, the Delaware Trustee.

                  (c) The Property Trustee shall:

                  (i) establish and maintain a segregated non-interest bearing
         bank account (the "Property Account") in the name of and under the
         exclusive control of the Property Trustee on behalf of the Holders of
         the Securities and on the receipt of payments of funds made in respect
         of the Debentures held by the Property Trustee, deposit such funds into
         the Property Account and, without any further acts of the Property
         Trustee or the Regular Trustees, promptly make payments to the Holders
         of the Preferred Securities and Common Securities from the Property
         Account in accordance with Section 6.01. Funds in the Property Account
         shall be held uninvested, and without liability for interest thereon,
         until disbursed in accordance with this Declaration. The Property
         Account shall be an account which is maintained with a banking
         institution whose long term unsecured indebtedness is rated by a
         "nationally recognized statistical rating organization", as such term
         is defined for purposes of
<PAGE>   28
                                                                              21

         Rule 436(g)(2) under the Securities Act, at least equal to (but in no
         event less than "A" or the equivalent) the rating assigned to the
         Preferred Securities by a nationally recognized statistical rating
         organization;

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

                  (iii) upon notice of distribution issued by the Regular
         Trustees in accordance with the terms of the Preferred Securities and
         the Common Securities, engage in such ministerial activities as shall
         be necessary or appropriate to effect promptly, pursuant to the terms
         of the Securities, the distribution of Debentures to Holders of
         Securities upon the occurrence of a Special Event; and

                  (iv) have the legal power to exercise all of the rights,
         powers and privileges of a holder of the Debentures under the Indenture
         and, if an Event of Default occurs and is continuing, the Property
         Trustee, subject to Section 2.06(b), shall, for the benefit of the
         Holders of the Securities, enforce its rights as holder of the
         Debentures under the Indenture, subject to the rights of the Holders of
         the Preferred Securities pursuant to the terms of this Declaration, the
         Business Trust Act and the Trust Indenture Act.

                  (d) The Property Trustee shall take all actions and perform
such duties as may be specifically required of the Property Trustee pursuant to
the terms of the Securities set forth in Exhibits B and C hereto.

                  (e) The Property Trustee shall take any Legal Action which
arises out of or in connection with an Event of Default or the Property
Trustee's duties and obligations under this Declaration, the Business Trust Act
or the Trust Indenture Act.

                  (f) All moneys deposited in the Property Account, and all
Debentures held by the Property Trustee for the benefit of the Holders of the
Securities, will not be subject to any right, charge, security interest, lien or
claim of any kind in favor of, or for the benefit of, the Property Trustee or
its agents or their creditors.
<PAGE>   29
                                                                              22

                  (g) The Property Trustee shall, within 90 days after the
occurrence of a default with respect to the Securities, transmit by mail, first
class postage prepaid, to the holders of the Securities, as their names and
addresses appear upon the register, notice of all defaults with respect to the
Securities known to the Property Trustee, unless such defaults shall have been
cured before the giving of such notice (the term "defaults" for the purposes
of this Section 3.10(g) being hereby defined to be an Indenture Event of
Default, not including any periods of grace provided for in the Indenture and
irrespective of the giving of any notice provided therein); provided that,
except in the case of default in the payment of the principal of (or premium, if
any) or interest on any of the Debentures, the Property Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Property Trustee in good faith determines that the withholding
of such notice is in the interests of the Holders of the Securities. The
Property Trustee shall not be deemed to have knowledge of any default, except
(i) a default in the payment of principal of (or premium, if any) or interest on
the Debentures or (ii) any default as to which the Property Trustee shall have
received written notice or a Responsible Officer charged with the administration
of this Declaration shall have obtained written notice.

                  (h) The Property Trustee shall not resign as a Trustee
unless either:

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

                  (ii) a Successor Property Trustee has been appointed and
         accepted that appointment in accordance with Article V.

                  (i) The Property Trustee shall act as paying agent in respect
     of the Common Securities and the Preferred Securities and, subject to
     Section 3.08(r), may authorize one or more Persons (each, a "Paying
     Agent") to pay Distributions, redemption payments or liquidation payments
     on behalf of the Trust with respect to the Preferred Securities. Any such
     Paying Agent shall comply with Section 317(b) of the Trust Indenture Act.
     Any Paying Agent may be removed by the Property Trustee, after consultation
     with
<PAGE>   30
                                                                              23

the Regular Trustees, at any time and a successor Paying Agent or additional
Paying Agents may be appointed at any time by the Property Trustee, subject to
Section 3.08(r).

                  (j) The Property Trustee shall give prompt written notice to
the Holders of the Securities of any notice received by it from JPM of its
election to defer payments of interest on the Debentures by extending the
interest payment period with respect thereto.

                  (k) Subject to this Section 3.10, the Property Trustee shall
have none of the powers or the authority of the Regular Trustees set forth in
Section 3.08.

                  (l) The Property Trustee shall exercise the powers, duties and
rights set forth in this Section 3.10 and Section 3.12 in a manner which is
consistent with the purposes and functions of the Trust set out in Section 3.05,
and the Property Trustee shall not take any action which is inconsistent with
the purposes and functions of the Trust set forth in Section 3.05.

                  SECTION 3.11. Delaware Trustee. Notwithstanding any other
provision of this Declaration other than Section 5.01(a)(3), the Delaware
Trustee shall not be entitled to exercise any powers, nor shall the Delaware
Trustee have any of the duties and responsibilities of the Regular Trustees or
the Property Trustee described in this Declaration. Except as set forth in
Section 5.01(a)(3), the Delaware Trustee shall be a Trustee for the sole and
limited purpose of fulfilling the requirements of Section 3807 of the Business
Trust Act. No implied covenants or obligations shall be read into this
Declaration against the Delaware Trustee.

                  SECTION 3.12. Certain Rights and Duties of the Property
Trustee. (a) The Property Trustee, before the occurrence of an Event of Default
and after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Declaration, and no implied covenants shall be read into this Declaration
against the Property Trustee. In case an Event of Default has occurred (that has
not been cured or waived pursuant to Section 2.06), the Property Trustee shall
exercise such of the rights and powers vested in it by this Declaration, and use
the same degree of care and skill in their exercise, as a prudent
<PAGE>   31
                                                                              24

person would exercise or use under the circumstances in the conduct of his or
her own affairs.

                  (b) No provision of this Declaration shall be construed to
relieve the Property 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 Property
                  Trustee shall be determined solely by the express provisions
                  of this Declaration, and the Property Trustee shall not be
                  liable except for the performance of such duties and
                  obligations as are specifically set forth in this Declaration,
                  and no implied covenants or obligations shall be read into
                  this Declaration against the Property Trustee; and

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

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

                  (iii) the Property Trustee shall not be liable with respect to
         any action taken or omitted to be taken by it in good faith in
         accordance with the direction of the Holders as provided herein
         relating to the time, method and place of conducting any proceeding for
         any

<PAGE>   32
                                                                              25

        remedy available to the Property Trustee hereunder or under the
        Indenture, or exercising any trust or power conferred upon the Property
        Trustee under this Declaration; and

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

                 (c) Subject to the provisions of Section 3.12(a) and (b)

                 (i) whenever in the administration of this Declaration, the
        Property Trustee shall deem it desirable that a matter be proved or
        established prior to taking, suffering or omitting any action hereunder,
        the Property Trustee (unless other evidence is herein specifically
        prescribed) may, in the absence of bad faith on its part and, if the
        Trust is excluded from the definition of Investment Company solely by
        means of Rule 3a-7, subject to the requirements of Rule 3a-7, request
        and rely upon a certificate, which shall comply with the provisions of
        Section 314(e) of the Trust Indenture Act, signed by any two of the
        Regular Trustees or by an authorized officer of the Sponsor, as the case
        may be;

                 (ii) the Property Trustee (A) may consult with counsel (which
        may be counsel to the Sponsor or any of its Affiliates and may include
        any of its employees) selected by it in good faith and with due care and
        the written advice or opinion of such counsel with respect to legal
        matters shall be full and complete authorization and protection in
        respect of any action taken, suffered or omitted by it hereunder in good
        faith and in reliance thereon and in accordance with such advice and
        opinion and (B) shall have the right at any time to seek instructions
        concerning the administration of this Declaration from any court of
        competent jurisdiction;
<PAGE>   33
                                                                              26

                 (iii) the Property 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 Property Trustee shall not be
        responsible for any misconduct or negligence on the part of any agent or
        attorney appointed by it in good faith and with due care;

                 (iv) the Property Trustee shall be under no obligation to
        exercise any of the rights or powers vested in at the request or
        direction of any Holders, unless such Holders shall have offered to the
        Property Trustee reasonable security and indemnity against the costs,
        expenses (including attorneys' fees and expenses) and liabilities that
        might be incurred by it in complying with such request or direction;
        provided that nothing contained in this clause (iv) shall relieve the
        Property Trustee of the obligation, upon the occurrence of an Event of
        Default (which has not been cured or waived) to exercise such of the
        rights and powers vested in it by this Declaration, and to use the same
        degree of care and skill in this exercise, as a prudent person would
        exercise or use under the circumstances in the conduct -of his or her
        own affairs;

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

                 (vi) the Property Trustee may rely and shall be fully 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, sent or presented by the proper party
        or parties; and
<PAGE>   34
                                                                              27

                 (vii) the Property Trustee shall not be bound to make any
        investigation into the facts or matters stated in any resolution,
        certificate, statement, instrument, opinion, report, notice, request,
        consent, order, bond, security or other paper or document, but the
        Property Trustee, in its discretion, may make such further inquiry or
        investigation into such facts or matters as it may see fit. .

                 SECTION 3.13. Registration Statement and Related Matters. In
accordance with the Original Declaration, JPM and the Trustees have authorized
and directed, and hereby confirm the authorization of, JPM, as the sponsor of
the Trust, (i) to file with the Commission and execute, in each case on behalf
of the Trust, (a) the Registration Statement on Form S-3 (File Nos. 333-15079,
333-15079-1, 333-15079-2, 333-15079-3 and 333-15079-4) (the "1933 Act
Registration Statement") including any amendments thereto and any further
pre-effective or post-effective amendments to such Registration Statement,
relating to the registration under the Securities Act of, among other things,
the Preferred Securities of the Trust and the related guarantees of such
Preferred Securities by the Sponsor and (b) a Registration Statement on Form 8-A
or other appropriate form (the "1934 Act Registration Statement") (including all
pre-effective and post-effective amendments thereto) relating to the
registration of the Preferred Securities of the Trust and the related guarantees
of such Preferred Securities by the Sponsor under Section 12(b) of the Exchange
Act; (ii) to file with the New York Stock Exchange and execute on behalf of the
Trust a listing application and all other applications, statements,
certificates, agreements and other instruments as shall be necessary or
desirable to cause the Preferred Securities to be listed on the New York Stock
Exchange; (iii) to file and execute on behalf of the Trust such applications,
reports, surety bonds, irrevocable consents, appointments of attorney for
service of process and other papers and documents as shall be necessary or
desirable to register the Preferred Securities under the securities or "Blue
Sky" laws of such jurisdictions as JPM, on behalf of the Trust, may deem
necessary or desirable and (iv) to negotiate and execute on behalf of the Trust
the Underwriting Agreement. In the event that any filing referred to in clauses
(i) - (iii) above is required by the rules and regulations of the Commission,
the New York Stock Exchange or state securities or blue sky laws, to be executed
on behalf of the Trust by the Trustees, the Regular Trustees, in their
capacities as Trustees of the Trust, are
<PAGE>   35
                                                                              28

hereby authorized and directed to join in any such filing and to execute on
behalf of the Trust any and all of the foregoing, it being understood that the
Property Trustee and the Delaware Trustee, in their capacities as Trustees of
the Trust, shall not be required to join in any such filing or execute on behalf
of the Trust any such document unless required by the rules and regulations of
the Commission, the New York Stock Exchange or state securities or blue sky
laws. In connection with all of the foregoing, JPM and each Trustee, solely in
its capacity as a Trustee of the Trust, have constituted and appointed, and
hereby confirm the appointment of Gene A. Capello and James C.P. Berry, and each
of them, as his, her or its, as the case may be, true and lawful
attorneys-in-fact, and agents, with full power of substitution and
resubstitution, for JPM or such Trustee or in JPM's or such Trustee's name,
place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to the 1933 Act Registration Statement and
the 1934 Act Registration Statement and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Commission,
granting unto said attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
connection therewith, as fully to all intents and purposes as JPM or such
Trustee might or could do in person, hereby ratifying and confirming all that
said attorneys-in-fact and agents or any of them, or their or his or her
substitute or substitutes, shall do or cause to be done by virtue hereof.

                 SECTION 3.14. Filing of Amendments to Certificate of Trust. The
Certificate of Trust as filed with the Secretary of State of the State of
Delaware on October 29, 1996 is attached hereto as Exhibit A. On or after the
date of execution of this Declaration, the Trustees shall cause the filing with
the Secretary of State of the State of Delaware of such amendments to the
Certificate of Trust as the Trustees shall deem necessary or desirable.

                 SECTION 3.15. Execution of Documents by Regular Trustees.
Unless otherwise determined by the Regular Trustees and except as otherwise
required by the Business Trust Act with respect to the Certificate of Trust or
otherwise, a majority of, or if there are only two, both of, the Regular
Trustees are authorized to execute and deliver on behalf of the Trust any
documents which the Regular Trustees have the power and authority to execute or
deliver pursuant to this Declaration.
<PAGE>   36
                                                                              29

                 SECTION 3.16. Trustees Not Responsible for Recitals or Issuance
of Securities. The recitals contained in this Declaration and the Securities
shall be taken as the statements of the Sponsor and the Trustees do not assume
any responsibility for their correctness. The Trustees make no representations
as to the value or condition of the property of the Trust or any part thereof.
The Trustees make no representations as to the validity or sufficiency of this
Declaration or the Securities.

                 SECTION 3.17. Duration of Trust. The Trust, absent termination
pursuant to the provisions of Article VIII hereof, shall have existence until
January 15, 2027.

                                   ARTICLE IV

                                     Sponsor

                 SECTION 4.01. Purchase of Common Securities by Sponsor. On the
Closing Date, the Sponsor will purchase all of the Common Securities issued by
the Trust at the same tine as the Preferred Securities to be issued on such date
are issued, such purchase to be in an amount equal to 3% of the total capital
of the Trust. On the Option Closing Date, the Sponsor shall purchase all of the
Common Securities issued by the Trust at the same time as the Preferred
Securities to be issued on such date are issued, such purchase to be in such
amount so that the Common Securities continue to represent 3% of the total
capital of the Trust.

                 SECTION 4.02. Expenses. (a) In connection with the purchase of
the Debentures by the Trust, the Sponsor, in its capacity as Sponsor and not as
a Holder, shall be responsible for and shall pay for all debts and obligations
(other than with respect to the Securities) and all costs and expenses of the
Trust (including, but not limited to, costs and expenses relating to the
organization of the Trust, the issuance of the Preferred Securities to initial
purchasers thereof, the fees and expenses (including reasonable counsel fees and
expenses) of the Trustees (including any amounts payable under Article X), the
costs and expenses relating to the operation of the Trust, including without
limitation, costs and expenses of accountants, attorneys, statistical or
bookkeeping services, expenses for printing and engraving and computing or
accounting equipment, Paying Agent(s), registrars, transfer
<PAGE>   37
                                                                              30

agent(s), duplicating, travel and telephone and other telecommunications
expenses and costs and expenses incurred in connection with the disposition of
Trust assets).

                 (b) In connection with the purchase of the Debentures by the
Trust, the Sponsor, in its capacity as Sponsor and not as a Holder, will pay any
and all taxes (other than United States withholding taxes attributable to the
Trust or its assets) and all liabilities, costs and expenses with respect to
such taxes of the Trust.

                 (c) The Sponsor's obligations under this Section 4.02 shall be
for the benefit of, and shall be enforceable by, any Person to whom any such
debts, obligations, costs, expenses and taxes are owed (a "Creditor") whether
or not such Creditor has received notice hereof. Any such Creditor may enforce
the Sponsor's obligations under this Section 4.02 directly against the Sponsor
and the Sponsor irrevocably waives any right or remedy to require that any such
Creditor take any action against the Trust or any other Person before proceeding
against the Sponsor. The Sponsor agrees to execute such additional agreements as
may be necessary or desirable in order to give full effect to the provisions of
this Section 4.02.

                                    ARTICLE V

                                    Trustees

                 SECTION 5.01. Number of Trustees; Qualifications. (a) Except as
provided in (1) below, the number of Trustees initially shall be five (5). At
any time (i) before the issuance of the Securities, the Sponsor may, by written
instrument, increase or decrease the number of, and appoint, remove and replace
the Trustees, and (ii) after the issuance of the Securities the number of
Trustees may be increased or decreased solely by, and Trustees may be appointed,
removed or replaced solely by, vote of Holders of Common Securities representing
a Majority in liquidation amount of the Common Securities voting as a class;
provided that in any case:

                 (1) the number of Trustees shall be at least five (5) unless
        the Trustee that acts as the Property Trustee also acts as the Delaware
        Trustee, in which
<PAGE>   38
                                                                              31

        case the number of Trustees shall be at least three (3);

                 (2) at least a majority of the Trustees shall at all times be
        officers or employees of JPM;

                 (3) if required by the Business Trust Act, one Trustee (the
        "Delaware Trustee") shall be either a natural person who is a resident
        of the State of Delaware or, if not a natural person, an entity which
        has its principal place of business in the State of Delaware and
        otherwise is permitted to act as a Trustee hereunder under the laws of
        the State of Delaware, except that if the Property Trustee has its
        principal place of business in the State of Delaware and otherwise is
        permitted to act as a Trustee hereunder under the laws of the State of
        Delaware, then the Property Trustee shall also be the Delaware Trustee
        and Section 3.09 shall have no application; and

                 (4) there shall at all times be a Property Trustee hereunder
        which shall satisfy the requirements of Section 5.01(c).

Each Trustee shall be either a natural person at least 21 years of age or a
legal entity which shall act through one or more duly appointed representatives.

                 (b) The initial Regular Trustees shall be:

                              H. Christian Raymond
                              Andrew G. Kerber
                              Susan L. McCullin

                     In care of J.P. Morgan & Co. Incorporated
                                60 Wall Street
                                New York, New York 10260-0060

                 (c) There shall at all times be one Trustee which shall act as
Property Trustee. In order to act as Property Trustee hereunder, such Trustee
shall:

                 (i) not be an Affiliate of the Sponsor;

                 (ii) be a corporation organized and doing business under the
        laws of the United States of America or any State or Territory thereof
        or of the District of Columbia, or a corporation or Person permitted by
        the
<PAGE>   39
                                                                              32

        Commission to act as an institutional trustee under the Trust Indenture
        Act, 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 corporation publishes reports of
        condition at least annually, pursuant to law or to the requirements of
        the supervising or examining authority referred to above, then for the
        purposes of this Section 5.01(c)(ii), the combined capital and surplus
        of such corporation shall be deemed to be its combined capital and
        surplus as set forth in its most recent report of condition so
        published; and

                 (iii) if the Trust is excluded from the definition of an
        Investment Company solely by reason of Rule 3a-7 and to the extent Rule
        3a-7 requires a trustee having certain qualifications to hold title to
        the "eligible assets" (as defined in Rule 3a-7) of the Trust, the
        Property Trustee shall possess those qualifications.

                 If at any time the Property Trustee shall cease to satisfy the
requirements of clauses (i)-(iii) above, the Property Trustee shall immediately
resign in the manner and with the effect set out in Section 5.02(d). If the
Property Trustee has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the Trust Indenture Act, the Property Trustee and
the Holders of the Common Securities (as if such Holders were the obligor
referred to in Section 310(b) of the Trust Indenture Act) shall in all respects
comply with the provisions of Section 310(b) of the Trust Indenture Act. The
Preferred Guarantee shall be deemed to be specifically described in this
Declaration for the purposes of clause (i) of the first proviso contained in
Section 310(b) of the Trust Indenture Act.

                 The initial Trustee which shall serve as the Property Trustee
is First Trust of New York, National Association, whose address is as set forth
in Section 14.01(b).

                 (d) The initial Trustee which shall serve as the Delaware
Trustee is Wilmington Trust Company, a Delaware banking corporation, whose
address is as set forth in Section 14.01(c).
<PAGE>   40
                                                                              33

                 (e) Any action taken by Holders of Common Securities pursuant
to this Article V shall be taken at a meeting of Holders of Common Securities
convened for such purpose or by written consent as provided in Section 12.02.

                 (f) No amendment may be made to this Section 5.01 which would
change any rights with respect to the number, existence or appointment and
removal of Trustees, except with the consent of each Holder of Common
Securities.

                 SECTION 5.02. Appointment, Removal and Resignation of Trustees.
(a) Subject to Section 5.02(b), Trustees may be appointed or removed without
cause at any time:

                 (i) until the issuance of the Securities, by written instrument
        executed by the Sponsor; and

                 (ii) after the issuance of the Securities by vote of the
        Holders of a Majority in liquidation amount of the Common Securities
        voting as a class.

                 (b)(i) The Trustee that acts as Property Trustee shall not be
        removed in accordance with Section 5.02(a) until a Successor Property
        Trustee possessing the qualifications to act as Property Trustee under
        Section 5.01(c) (a "Successor Property Trustee") has been appointed
        and has accepted such appointment by written instrument executed by such
        Successor Property Trustee and delivered to the Regular Trustees, the
        Sponsor and the Property Trustee being removed; and

                 (ii) the Trustee that acts as Delaware Trustee shall not be
        removed in accordance with Section 5.02(a) until a successor Trustee
        possessing the qualifications to act as Delaware Trustee under Section
        5.01(a)(3) (a "Successor Delaware Trustee") has been appointed and has
        accepted such appointment by written instrument executed by such
        Successor Delaware Trustee and delivered to the Regular Trustees, the
        Sponsor and the Delaware Trustee being removed.

                 (c) A Trustee appointed to office shall hold office until his
        successor shall have been appointed or until his death, removal or
        resignation.

                 (d) Any Trustee may resign from office (without need for prior
        or subsequent accounting) by an
<PAGE>   41
                                                                              34

instrument (a "Resignation Request") in writing signed by the Trustee and
delivered to the Sponsor and the Trust, which resignation shall take effect upon
such delivery or upon such later date as is specified therein; provided,
however, that:

                 (i) no such resignation of the Trustee that acts as the
        Property Trustee shall be effective until:

                                  (A) a Successor Property Trustee possessing
                 the qualifications to act as Property Trustee under Section
                 5.01(c) has been appointed and has accepted such appointment by
                 instrument executed by such Successor Property Trustee and
                 delivered to the Trust, the Sponsor and the resigning Property
                 Trustee; or

                                  (B) if the Trust is excluded from the
                 definition of an Investment Company solely by reason of Rule
                 3a-7, until the assets of the Trust have been completely
                 liquidated and the proceeds thereof distributed to the Holders
                 of the Securities; and

                 (ii) no such resignation of the Trustee that acts as the
        Delaware Trustee shall be effective until a Successor Delaware Trustee
        has been appointed and has accepted such appointment by instrument
        executed by such Successor Delaware Trustee and delivered to the Trust,
        the Sponsor and the resigning Delaware Trustee.

                 (e) If no Successor Property Trustee or Successor Delaware
Trustee shall have been appointed and accepted appointment as provided in this
Section 5.02 within 60 days after delivery to the Sponsor and the Trust of a
Resignation Request, the resigning Property Trustee or Delaware Trustee may
petition any court of competent jurisdiction for appointment of a Successor
Property Trustee or Successor Delaware Trustee. Such court may thereupon after
such notice, if any, as it may deem proper and prescribe, appoint a Successor
Property Trustee or Successor Delaware Trustee, as the case may be.

                 (f) The Sponsor shall provide notice to the Property Trustee of
any resignation or removal of a Regular Trustee.
<PAGE>   42
                                                                              35

                 SECTION 5.03. Vacancies Among Trustees. If a Trustee ceases to
hold office for any reason and the number of Trustees is not reduced pursuant to
Section 5.01 or if the number of Trustees is increased pursuant to Section
5.01, a vacancy shall occur. A resolution certifying the existence of such
vacancy by a majority of the Regular Trustees shall be conclusive evidence of
the existence of such vacancy. The vacancy shall be filled with a Trustee
appointed in accordance with the requirements of this Article V.

                 SECTION 5.04. Effect of Vacancies. The death, resignation,
retirement, removal, bankruptcy, dissolution, liquidation, incompetence or
incapacity to perform the duties of a Trustee, or any one of them, shall not
operate to annul the Trust. Whenever a vacancy in the number of Regular Trustees
shall occur until such vacancy is filled as provided in this Article V, the
Regular Trustees in office, regardless of their number, shall have all the
powers granted to the Regular Trustees and shall discharge all the duties
imposed upon the Regular Trustees by this Declaration.

                 SECTION 5.05. Meetings. Meetings of the Regular Trustees shall
be held from time to time upon the call of any Trustee. Regular meetings of the
Regular Trustees may be held at a time and place fixed by resolution of the
Regular Trustees. Notice of any in-person meeting of the Regular Trustees shall
be hand delivered or otherwise delivered in writing (including by facsimile,
with a hard copy by overnight courier) not less than 48 hours before such
meeting. Notice of any telephonic meeting of the Regular Trustees or any
committee thereof shall be hand delivered or otherwise delivered in writing
(including by facsimile, with a hard copy by overnight courier) not less than 24
hours before such meeting. Notices shall contain a brief statement of the time,
place and anticipated purposes of the meeting. The presence (whether in person
or by telephone) of a Regular Trustee at a meeting shall constitute a waiver of
notice of such meeting except where a Regular Trustee attends a meeting for the
express purpose of objecting to the transaction of any activity on the ground
that the meeting has not been lawfully called or convened. Unless provided
otherwise in this Declaration, any action of the Regular Trustees may be taken
at a meeting by vote of a majority of the Regular Trustees present (whether in
person or by telephone) and eligible to vote with respect to such matter;
provided that a Quorum is present, or without a
<PAGE>   43
                                                                              36

meeting by the unanimous written consent of the Regular Trustees.

                 SECTION 5.06. Delegation of Power. (a) Any Regular Trustee may,
by power of attorney consistent with applicable law, delegate to any other
natural person over the age of 21 his or her power for the purpose of executing
any registration statement or amendment thereto or other document or schedule
filed with the Commission or making any other governmental filing (including,
without limitation the filings referred to in Section 3.13).

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

                                   ARTICLE VI

                                  Distributions

                 SECTION 6.01. Distributions. Holders shall receive periodic
distributions, redemption payments and liquidation distributions in accordance
with the applicable terms of the relevant Holder's Securities ("Distributions").
Distributions shall be made to the Holders of Preferred Securities and Common
Securities in accordance with the terms of the Securities as set forth in
Exhibits B and C hereto. If and to the extent that JPM makes a payment of
interest (including Compounded Interest (as defined in the Indenture)), premium
or principal on the Debentures held by the Property Trustee (the amount of any
such payment being a "Payment Amount"), the Property Trustee shall and is
directed to promptly make a Distribution of the Payment Amount to Holders in
accordance with the terms of the Securities as set forth in Exhibits B and C
hereto.
<PAGE>   44
                                                                              37

                                   ARTICLE VII

                             Issuance of Securities

                 SECTION 7.01. General Provisions Regarding Securities. (a) The
Regular Trustees shall issue on behalf of the Trust securities in fully
registered form representing undivided beneficial interests in the assets of the
Trust in accordance with Section 7.01(b) and for the consideration specified in
Section 3.03.

                 (b) The Regular Trustees shall issue on behalf of the Trust one
class of preferred securities representing undivided beneficial interests in the
assets of the Trust having such terms as are set forth in Exhibit B (the
"Preferred Securities") which terms are incorporated by reference in, and made a
part of, this Declaration as if specifically set forth herein, and one class of
common securities representing undivided beneficial interests in the assets of
the Trust having such terms as are set forth in Exhibit C (the "Common
Securities") which terms are incorporated by reference in, and made a part of,
this Declaration as if specifically set forth herein. The Trust shall have no
securities or other interests in the assets of the Trust other than the
Preferred Securities and the Common Securities.

                 (c) The Certificates shall be signed on behalf of the Trust by
the Regular Trustees (or if there are more than two Regular Trustees by any two
of the Regular Trustees). Such signatures may be the manual or facsimile
signatures of the present or any future Regular Trustee. Typographical and other
minor errors or defects in any such reproduction of any such signature shall not
affect the validity of any Certificate. In case any Regular Trustee of the Trust
who shall have signed any of the Certificates shall cease to be such Regular
Trustee before the Certificate so signed shall be delivered by the Trust, such
Certificate nevertheless may be delivered as though the person who signed such
Certificate had not ceased to be such Regular Trustee; and any Certificate may
be signed on behalf of the Trust by such persons as, at the actual date of the
execution of such Certificate, shall be the Regular Trustees of the Trust,
although at the date of the execution and delivery of the Declaration any such
person was not such a Regular Trustee. Certificates shall be printed,
lithographed or engraved or may be produced in any other manner as is reasonably
acceptable to the Regular Trustees, as evidenced by their
<PAGE>   45
                                                                              38

execution thereof, and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements as the Regular
Trustees may deem appropriate, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any stock exchange on which the Securities may be listed, or to conform to
usage. Pending the preparation of definitive Certificates, the Regular Trustees
on behalf of the Trust may execute temporary Certificates (printed, lithographed
or typewritten), in substantially the form of the definitive Certificates in
lieu of which they are issued, but with such omissions, insertions and
variations as may be appropriate for temporary Certificates, all as may be
determined by the Regular Trustees. Each temporary Certificate shall be executed
by the Regular Trustees on behalf of the Trust upon the same conditions and in
substantially the same manner, and with like effect, as definitive Certificates.
Without unnecessary delay, the Regular Trustees on behalf of the Trust will
execute and furnish definitive Certificates and thereupon any or all temporary
Certificates may be surrendered to the transfer agent and registrar in exchange
therefor (without charge to the Holders). Each Certificate whether in temporary
or definitive form shall be countersigned by the manual or facsimile signature
of an authorized signatory of the Person acting as registrar and transfer agent
for the Securities, which shall initially be the Property Trustee.

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

                 (e) Upon issuance of the Securities as provided in this
Declaration, the Securities so issued shall be deemed to be validly issued,
fully paid and non-assessable.

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

                 (g) Upon issuance of the Securities as provided in this
Declaration, the Regular Trustees on behalf of the Trust shall return to JPM the
$10 constituting initial trust assets as set forth in the Original Declaration.
<PAGE>   46
                                                                              39

                                  ARTICLE VIII

                              Termination of Trust

                 SECTION 8.01. Termination of Trust. The Trust shall dissolve
when:

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

                 (ii) all of the Debentures shall have been distributed to the
        Holders of Securities in exchange for all of the Securities in
        accordance with the terms of the Securities; or

                 (iii) upon the expiration of the term of the Trust as set forth
        in Section 3.17,

and thereafter the Trustees shall, after satisfaction of all obligations of the
Trust, file a certificate of cancelation with the Secretary of State of the
State of Delaware and the Trust shall terminate. The Trustees shall so file such
a certificate as soon as practicable after the occurrence of an event referred
to in this Section 8.01.

                 The provisions of Sections 3.12 and 4.02 and Article X shall
survive the termination of the Trust.

                                   ARTICLE IX

                              Transfer of Interests

                 SECTION 9.01. Transfer of Securities. (a) Securities may only
be transferred, in whole or in part, in accordance with the terms and
conditions set forth in this Declaration. Any transfer or purported transfer of
any Security not made in accordance with this Declaration shall be null and
void.

                 (b) Subject to this Article IX, Preferred Securities shall be
freely transferable.
<PAGE>   47
                                                                              40

                 (c) Subject to this Article IX, JPM and any Related Party may
only transfer Common Securities to JPM or a Related Party; provided that any
such transfer shall be subject to the condition that the transferor shall have
obtained (1) either a ruling from the Internal Revenue Service or an unqualified
written opinion addressed to the Trust and delivered to the Trustees of
nationally recognized independent tax counsel experienced in such matters to the
effect that such transfer will not (i) cause the Trust to be treated as issuing
a class of interests in the Trust differing from the class of interests
represented by the Common Securities originally issued to JPM, (ii) result in
the Trust acquiring or disposing of, or being deemed to have acquired or
disposed of, an asset, or (iii) result in or cause the Trust to be treated as
anything other than a grantor trust for United States Federal income tax
purposes and (2) an unqualified written opinion addressed to the Trust and
delivered to the Trustees of a nationally recognized independent counsel
experienced in such matters that such transfer will not cause the Trust to be an
Investment Company or controlled by an Investment Company.

                 SECTION 9.02. Transfer of Certificates. The Regular Trustees
shall cause to be kept at an office or agency to be maintained by the Trust a
register in which, subject to such reasonable regulations as it may prescribe,
the Trust shall provide for the registration of Certificates and of transfers of
Certificates, which will be effected without charge but only upon payment (with
such indemnity as the Trust may require) in respect of any tax or other
government charges which may be imposed in relation to it. The Property Trustee
will be the initial registrar and transfer agent (the "Registrar") for the
purpose of registering Certificates and transfers of Certificates as provided
herein.

                 Upon surrender for registration of transfer of any Certificate
at the office or agency of the Registrar, the Regular Trustees shall execute and
the Registrar shall countersign in accordance with section 7.01(c) one or more
new Certificates of any authorized denominations and of a like aggregate
liquidation amount to be issued in the name of the designated transferee or
transferees. Every Certificate surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the
Trust duly executed by the Holder or such Holder's attorney duly authorized in
writing. Each Certificate surrendered for registration of transfer shall
<PAGE>   48
                                                                              41

be canceled by the Regular Trustees. A transferee of a Certificate shall be
entitled to the rights and subject to the obligations of a Holder hereunder upon
the receipt by such transferee of a Certificate. By acceptance of a Certificate,
each transferee shall be deemed to have agreed to be bound by this Declaration.

                 SECTION 9.03. Deemed Security Holders. The Trustees may treat
the Person in whose name any Certificate shall be registered on the books and
records of the Trust as the sole holder of such Certificate and of the
Securities represented by such Certificate for purposes of receiving
Distributions and for all other purposes whatsoever and, accordingly, shall not
be bound to recognize any equitable or other claim to or interest in such
Certificate or in the Securities represented by such Certificate on the part of
any Person, whether or not the Trustees shall have actual or other notice
thereof.

                 SECTION 9.04. Book Entry Interests. Unless otherwise specified
in the terms of the Preferred Securities, the Preferred Securities Certificates,
on original issuance (including Preferred Securities, if any, issued on the
Option Closing Date pursuant to the exercise of the overallotment option set
forth in the Underwriting Agreement), will be issued in the form of one or more,
fully registered, global Preferred Security Certificates (each a "Global
Certificate"), to be delivered to DTC, the initial Clearing Agency, by, or on
behalf of, the Trust. Such Global Certificates shall initially be registered on
the books and records of the Trust in the name of Cede & Co., the nominee of
DTC, and no Preferred Security Beneficial Owner will receive a definitive
Preferred Security Certificate representing such Preferred Security Beneficial
Owner's interests in such Global Certificates, except as provided in Section
9.07. Unless and until definitive, fully registered Preferred Security
Certificates (the "Definitive Preferred Security Certificates") have been issued
to the Preferred Security Beneficial Owners pursuant to Section 9.07:

                 (i) the provisions of this Section 9.04 shall be in full force
        and effect;

                 (ii) the Trust and the Trustees shall be entitled to deal with
        the Clearing Agency for all purposes of this Declaration (including the
        payment of Distributions on the Global Certificates and receiving
<PAGE>   49
                                                                              42

        approvals, votes or consents hereunder) as the Holder of the Preferred
        Securities and the sole holder of the Global Certificates and shall have
        no obligation to the Preferred Security Beneficial Owners;

                 (iii) to the extent that the provisions of this Section 9.04
        conflict with any other provisions of this Declaration, the provisions
        of this Section 9.04 shall control; and

                 (iv) the rights of the Preferred Security Beneficial Owners
        shall be exercised only through the Clearing Agency and shall be limited
        to those established by law and agreements between such Preferred
        Security Beneficial Owners and the Clearing Agency and/or the Clearing
        Agency Participants. DTC will make book entry transfers among the
        Clearing Agency Participants and receive and transmit payments of
        Distributions on the Global Certificates to such Clearing Agency
        Participants.

                 SECTION 9.05. Notices to Holders of Certificates. Whenever a
notice or other communication to the Holders is required to be given under this
Declaration, unless and until Definitive Preferred Security Certificates shall
have been issued pursuant to Section 9.07, the relevant Trustees shall give all
such notices and communications, specified herein to be given to Preferred
Securities Holders, to the Clearing Agency and, with respect to any Preferred
Security Certificate registered in the name of a Clearing Agency or the nominee
of a Clearing Agency, the Trustees shall, except as set forth herein have no
notice obligations to the Preferred Security Beneficial Owners.

                 SECTION 9.06. Appointment of Successor Clearing Agency. If any
Clearing Agency elects to discontinue its services as securities depository with
respect to the Preferred Securities, the Regular Trustees may, in their sole
discretion, appoint a successor Clearing Agency with respect to the Preferred
Securities.

                 SECTION 9.07. Definitive Preferred Securities Certificates. If
(i) a Clearing Agency elects to discontinue its services as securities
depository with respect to the Preferred Securities and a successor Clearing
Agency is not appointed within 90 days after such discontinuance pursuant to
Section 9.06 or (ii) the Regular Trustees elect after consultation with the
Sponsor to
<PAGE>   50
                                                                              43

terminate the book entry system through the Clearing Agency with respect to the
Preferred Securities, then (x) Definitive Preferred Security Certificates
shall be prepared by the Regular Trustees on behalf of the Trust with respect to
such Preferred Securities and (y) upon surrender of the Global Certificates by
the Clearing Agency, accompanied by registration instructions, the Regular
Trustees shall cause definitive Preferred Security Certificates to be delivered
to Preferred Security Beneficial Owners in accordance with the instructions of
the Clearing Agency. Neither the Trustees nor the Trust shall be liable for any
delay in delivery of such instructions and each of them may conclusively rely
on, and shall be protected in relying on, such instructions.

                 SECTION 9.08. Mutilated, Destroyed, Lost or Stolen
Certificates. If (a) any mutilated Certificates should be surrendered to the
Regular Trustees, or if the Regular Trustees shall receive evidence to their
satisfaction of the destruction, loss or theft of any Certificate and (b) there
shall be delivered to the Regular Trustees such security or indemnity as may be
required by them to keep each of them harmless, then in the absence of notice
that such Certificate shall have been acquired by a bona fide purchaser, any two
Regular Trustees on behalf of the Trust shall execute and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
new Certificate of like denomination. In connection with the issuance of any new
Certificate under this Section 9.08, the Regular Trustees may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith. Any duplicate Certificate issued
pursuant to this Section shall constitute conclusive evidence of an ownership
interest in the relevant Securities, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.

                                   ARTICLE X

                    Limitation of Liability; Indemnification

                 SECTION 10.01. Exculpation. (a) No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Trust or any
Covered Person for any loss, damage or claim incurred by reason of any act or
omission performed or omitted by such Indemnified Person in
<PAGE>   51
                                                                              44

good faith on behalf of the Trust and in a manner such Indemnified Person
reasonably believed to be within the scope of the authority conferred on such
Indemnified Person by this Declaration or by law, except that an Indemnified
Person shall be liable for any such loss, damage or claim incurred by reason of
such Indemnified Person's gross negligence (or, in the case of the Property
Trustee, negligence) or willful misconduct with respect to such acts or
omissions.

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

                 (c) Pursuant to Section 3803(a) of the Business Trust Act, the
Holders of Securities, in their capacities as Holders, shall be entitled to the
same limitation of personal liability that is extended to stockholders of
private corporations for profit organized under the General Corporation Law of
the State of Delaware.

                 SECTION 10.02. Indemnification and Compensation. (a) To the
fullest extent permitted by applicable law, the Sponsor shall indemnify and hold
harmless each Indemnified Person from and against any loss, damage or claim
incurred by such Indemnified Person by reason of any act or omission performed
or omitted by such Indemnified Person in good faith on behalf of the Trust and
in a manner such Indemnified Person reasonably believed to be within the scope
of authority conferred on such Indemnified Person by this Declaration, except
that no Indemnified Person shall be entitled to be indemnified in respect of any
loss, damage or claim incurred by such Indemnified Person by reason of gross
negligence (or, in the case of the Property Trustee, negligence) or willful
misconduct with respect to such acts or omissions.
<PAGE>   52
                                                                              45

                 (b) To the fullest extent permitted by applicable law, expenses
(including legal fees) incurred by an Indemnified Person in defending any
claim, demand, action, suit or proceeding shall, from time to time, be advanced
by the Sponsor prior to the final disposition of such claim, demand, action,
suit or proceeding upon receipt by the Sponsor of an undertaking by or on behalf
of the Indemnified Person to repay such amount if it shall be determined that
the Indemnified Person is not entitled to be indemnified as authorized in
Section 10.02(a).

                 (c) The Sponsor agrees to pay the Property Trustee and the
Delaware Trustee from time to time such compensation for all services rendered
by the Property Trustee and the Delaware Trustee hereunder as may be mutually
agreed upon in writing by the Sponsor and the Property Trustee or the Delaware
Trustee, as the case may be, and, except as otherwise expressly provided herein,
to reimburse the Property Trustee and the Delaware Trustee upon its or their
request for all reasonable expenses, disbursements and advances incurred or made
by the Property Trustee or the Delaware Trustee, as the case may be, in
accordance with the provisions of this Declaration, except any such expense,
disbursement or advance as may be attributable to its or their negligence or bad
faith.

                 SECTION 10.03. Outside Businesses. Any Covered Person, the
Sponsor, JPM, the Delaware Trustee and the Property Trustee may engage in or
possess an interest in other business ventures of any nature or description,
independently or with others, similar or dissimilar to the business of the
Trust, and the Trust and the Holders of Securities shall have no rights by
virtue of this Declaration in and to such independent ventures or the income or
profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or
improper. None of the Covered Persons, the Sponsor, JPM, the Delaware Trustee or
the Property Trustee shall be obligated to present any particular investment or
other opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust, could be taken by the Trust, and any Covered Person,
the Sponsor, JPM, the Delaware Trustee and the Property Trustee shall have the
right to take for its own account (individually or as a partner or fiduciary) or
to recommend to others any such particular investment or other opportunity. Any
Covered Person, the Delaware Trustee and the Property Trustee may engage or be
interested in any

<PAGE>   53
                                                                              46

financial or other transaction with the Sponsor or any Affiliate of the Sponsor,
or may act as depositary for, trustee or agent for, or act on any committee or
body of holders of, securities or other obligations of the Sponsor or its
Affiliates.

                                   ARTICLE XI

                                   Accounting

                  SECTION 11.01. Fiscal Year. The fiscal year ("Fiscal Year") of
the Trust shall be the calendar year, or such other year as is required by the
Code.

                  SECTION 11.02. Certain Accounting Matters. (a) At all times
during the existence of the Trust, the Regular Trustees shall keep, or cause to
be kept, full books of account, records and supporting documents, which shall
reflect in reasonable detail each transaction of the Trust. The books of account
shall be maintained on the accrual method of accounting, in accordance with
generally accepted accounting principles consistently applied. The Trust shall
use the accrual method of accounting for United States Federal income tax
purposes. The books and records of the Trust, together with a copy of this
Declaration and a certified copy of the Certificate of Trust, or any amendment
thereto, shall at all times be maintained at the principal office of the Trust
and shall be open for inspection for any examination by any Holder or its duly
authorized representative for any purpose reasonably related to its interest in
the Trust during normal business hours.

                  (b) The Regular Trustees shall, as soon as available after the
end of each Fiscal Year of the Trust, cause to be prepared and mailed to each
Holder of Securities unaudited financial statements of the Trust for such Fiscal
Year, prepared in accordance with generally accepted accounting principles;
provided that if the Trust is required to comply with the periodic reporting
requirements of Sections 13(a) or 15(d) of the Exchange Act, such financial
statements for such Fiscal Year shall be examined and reported on by a firm of
independent certified public accountants selected by the Regular Trustees (which
firm may be the firm used by the Sponsor).

                  (c) The Regular Trustees shall cause to be prepared and mailed
to each Holder of Securities an annual
<PAGE>   54
                                                                              47

United States Federal income tax information statement, on such form as is
required by the Code, containing such information with regard to the Securities
held by each Holder as is required by the Code and the Treasury Regulations.
Notwithstanding any right under the Code to deliver any such statement at a
later date, the Regular Trustees shall endeavor to deliver all such statements
within 30 days after the end of each Fiscal Year of the Trust.

                  (d) The Regular Trustees shall cause to be prepared and filed
with the appropriate taxing authority an annual United States Federal income tax
return, on such form as is required by the Code, and any other annual income tax
returns required to be filed by the Regular Trustees on behalf of the Trust with
any state or local taxing authority, such returns to be filed as soon as
practicable after the end of each Fiscal Year of the Trust.

                  SECTION 11.03. Banking. The Trust shall maintain one or more
bank accounts in the name and for the sole benefit of the Trust; provided,
however, that all payments of funds in respect of the Debentures held by the
Property Trustee shall be made directly to the Property Account and no other
funds from the Trust shall be deposited in the Property Account. The sole
signatories for such accounts shall be designated by the Regular Trustees;
provided, however, that the Property Trustee shall designate the sole
signatories for the Property Account.

                  SECTION 11.04. Withholding. The Trust and the Trustees shall
comply with all withholding requirements under United States Federal, state and
local law. The Trust shall request, and the Holders shall provide to the Trust,
such forms or certificates as are necessary to establish an exemption from
withholding with respect to each Holder, and any representations and forms as
shall reasonably be requested by the Trust to assist it in determining the
extent of, and in fulfilling, its withholding obligations. The Property Trustee
shall file required forms with applicable jurisdictions and, unless an exemption
from withholding is properly established by a Holder, the Property Trustee shall
remit amounts withheld with respect to the Holder to applicable jurisdictions.
To the extent that the Trust is required to withhold and pay over any amounts to
any authority with respect to distributions or allocations to any Holder, the
amount withheld shall be deemed to be a distribution in the amount of the
withholding
<PAGE>   55
                                                                              48

to the Holder. In the event of any claimed overwithholding, Holders shall be
limited to an action against the applicable jurisdiction. If the amount to be
withheld was not withheld from a Distribution, the Property Trustee may reduce
subsequent Distributions by the amount of such withholding.

                                  ARTICLE XII

                            Amendments and Meetings

                  SECTION 12.01. Amendments. (a) Except as otherwise provided in
this Declaration or by any applicable terms of the Securities, this Declaration
may be amended by, and only by, a written instrument executed by a majority of
the Regular Trustees (or, if there are only two Regular Trustees, both Regular
Trustees); provided, however, that (i) no amendment to this Declaration shall be
made unless the Regular Trustees shall have obtained (A) either a ruling from
the Internal Revenue Service or a written unqualified opinion of nationally
recognized independent tax counsel experienced in such matters to the effect
that such amendment will not cause the Trust to be classified for United States
Federal income tax purposes as an association taxable as a corporation or a
partnership and to the effect that the Trust will continue to be treated as a
grantor trust for purposes of United States Federal income taxation and (B) a
written unqualified opinion of nationally recognized independent counsel
experienced in such matters to the effect that such amendment will not cause the
Trust to be an Investment Company which is required to be registered under the
Investment Company Act, (ii) if Securities are outstanding, any amendment which
would adversely affect the rights, privileges or preferences of any Holder of
Securities may be effected only after satisfaction of such additional
requirements as may be set forth in the terms of such Securities, (iii) Section
4.02, Section 9.01 (c) and this Section 12.01 shall not be amended without the
consent of all Holders of the Securities, (iv) no amendment which adversely
affects the rights, powers and privileges of the Property Trustee or the
Delaware Trustee shall be made without the consent of the Property Trustee or
the Delaware Trustee, as the case may be, (v) Article IV shall not be amended
without the consent of the Sponsor, and (vi) the rights of Holders of Common
Securities under Article V to increase or decrease the number of, and to
appoint, replace or remove, Trustees shall
<PAGE>   56
                                                                              49

not be amended without the consent of each Holder of Common Securities.

                  (b) Notwithstanding Section 12.02(a)(ii), this Declaration
may be amended without the consent of the Holders of the Securities to (i) cure
any ambiguity, (ii) correct or supplement any provision in this Declaration that
may be defective or inconsistent with any other provision of this Declaration,
(iii) to add to the covenants, restrictions or obligations of the Sponsor, and
(iv) to conform to any changes in Rule 3a-7 or any change in interpretation or
application of Rule 3a-7 by the Commission, which amendment does not adversely
affect the rights, preferences or privileges of the Holders.

                  (c) The Regular Trustees shall promptly furnish to each of the
Property Trustee and the Delaware Trustee a copy of each amendment to this
Declaration.

                  SECTION 12.02. Meetings of the Holders of Securities; Action
by Written Consent. (a) Meetings of the Holders of Preferred Securities and/or
Common Securities may be called at any time by the Regular Trustees (or as
provided in the terms of the Securities) to consider and act on any matter on
which Holders of such class of Securities are entitled to act under the terms of
this Declaration, the terms of the Securities or the rules of any stock exchange
on which the Preferred Securities are listed or admitted for trading. The
Regular Trustees shall call a meeting of Holders of Preferred Securities or
Common Securities if directed to do so by Holders of at least 10% in liquidation
amount of such class of Securities. Such direction shall be given by delivering
to the Regular Trustees one or more notices in writing stating that the signing
Holders of Securities wish to call a meeting and indicating the general or
specific purpose for which the meeting is to be called. Any Holders of
Securities calling a meeting shall specify in writing the Certificates held by
the Holders of Securities exercising the right to call a meeting and only those
specified Certificates shall be counted for purposes of determining whether the
required percentage set forth in the second sentence of this paragraph has been
met.

                  (b) Except to the extent otherwise provided in the terms of
the Securities, the following provision shall apply to meetings of Holders of
Securities:
<PAGE>   57
                                                                              50

                  (i) Notice of any such meeting shall be given by mail to each
         Trustee and all the Holders of Securities having a right to vote
         thereat not less than seven days nor more than 60 days prior to the
         date of such meeting. Whenever a vote, consent or approval of the
         Holders of Securities is permitted or required under this Declaration
         or the rules of any stock exchange on which the Preferred Securities
         are listed or admitted for trading, such vote, consent or approval may
         be given at a meeting of the Holders of Securities. Any action that may
         be taken at a meeting of the Holders of Securities may be taken without
         a meeting if a consent in writing setting forth the action so taken is
         signed by Holders of Securities owning not less than the minimum
         aggregate liquidation amount of Securities that would be necessary to
         authorize or take such action at a meeting at which all Holders of
         Securities having a right to vote thereon were present and voting.
         Prompt notice of the taking of action without a meeting shall be given
         to the Holders of Securities entitled to vote who have not consented in
         writing. The Regular Trustees may specify that any written ballot
         submitted to the Holders of Securities for the purpose of taking any
         action without a meeting shall be returned to the Trust within the time
         specified by the Regular Trustees.

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

                  (iii) Each meeting of the Holders of the Securities shall be
         conducted by the Regular Trustees or by such other Person that the
         Regular Trustees may designate.
<PAGE>   58
                                                                              51

                  (iv) Unless otherwise provided in the Business Trust Act, this
         Declaration or the rules of any stock exchange on which the Preferred
         Securities are then listed or admitted for trading, the Regular
         Trustees, in their sole discretion, shall establish all other
         provisions relating to meetings of Holders of Securities, including
         notice of the time, place or purpose of any meeting at which any matter
         is to be voted on by any Holders of Securities, waiver of any such
         notice, action by consent without a meeting, the establishment of a
         record date, quorum requirements, voting in person or by proxy or any
         other matter with respect to the exercise of any such right to vote.

                                  ARTICLE XIII

                       Representations of Property Trustee
                              and Delaware Trustee

                  SECTION 13.01. Representations and Warranties of Property
Trustee. (a) The Trustee which acts as initial Property Trustee represents and
warrants to the Trust and to the Sponsor at the date of this Declaration, and
each Successor Property Trustee represents and warrants to the Trust and the
Sponsor at the time of the Successor Property Trustee's acceptance of its
appointment as Property Trustee that:

                  (i) The Property Trustee is a banking corporation with trust
         powers, duly organized, validly existing and in good standing under the
         laws of the State of its incorporation, with trust power and authority
         to execute and deliver, and to carry out and perform its obligations
         under the terms of, this Declaration.

                  (ii) The execution, delivery and performance by the Property
         Trustee of this Declaration has been duly authorized by all necessary
         corporate action on the part of the Property Trustee. The Declaration
         has been duly executed and delivered by the Property Trustee, and
         constitutes a legal, valid and binding obligation of the Property
         Trustee, enforceable against it in accordance with its terms, subject
         to applicable bankruptcy, reorganization, moratorium, insolvency, and
         other similar laws affecting creditors' rights generally and to general
         principles of equity and the discretion of the court (regardless of
         whether the
<PAGE>   59
                                                                              52

         enforcement of such remedies is considered in a proceeding in equity or
         at law).

                  (iii) The execution, delivery and performance of this
         Declaration by the Property Trustee does not conflict with or
         constitute a breach of the charter or By-laws of the Property Trustee.

                  (iv) No consent, approval or authorization of, or registration
         with or notice to, any banking authority which supervises or regulates
         the Property Trustee is required for the execution, delivery or
         performance by the Property Trustee of this Declaration.

                  (v) The Property Trustee satisfies the qualifications set
         forth in Section 5.01(c).

                  (b) The Trustee which acts as initial Delaware Trustee
represents and warrants to the Trust and the Sponsor at the date of this
Declaration, and each Successor Delaware Trustee represents and warrants to the
Trust and the Sponsor at the time of the Successor Delaware Trustee's acceptance
of its appointment as Delaware Trustee, that it satisfies the qualifications set
forth in Section 5.01(a)(3).

                                  ARTICLE XIV

                                 Miscellaneous

                  SECTION 14.01. Notices. All notices provided for in this
Declaration shall be in writing, duly signed by the party giving such notice,
and shall be delivered, telecopied or mailed by first class mail, as follows:

                  (a) if given to the Trust, in care of the Regular Trustees at
         the Trust's mailing address set forth below (or such other address as
         the Regular Trustees on behalf of the Trust may give notice of to the
         Property
<PAGE>   60
                                                                              53

         Trustee, the Delaware Trustee and the Holders of the Securities):

                           JPM Capital Trust I
                           In care of J.P. Morgan & Co. Incorporated
                           60 Wall Street
                           New York, New York 10260-0060
                           Attention of H. Christian Raymond
                                        Andrew G. Kerber
                                        Susan L. McCullin
                                        Trustees
                           Facsimile No: (212) 648-5175

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

                           First Trust of New York, National Association
                           100 Wall Street, Suite 2000
                           New York, New York 10005
                           Attention of Corporate Trust Administration
                           Facsimile No: (212) 809-5459

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

                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, Delaware 19890
                           Attention of Corporate Trust Administration
                           Facsimile No: (302) 651-8882

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

                           J.P. Morgan & Co. Incorporated
                           60 Wall Street
                           New York, New York 10260-0060
                           Attention of Assistant Secretary
<PAGE>   61
                                                                              54

                           Facsimile No: (212) 648-5175

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

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

                  SECTION 14.02. Undertaking for Costs. All parties to this
Declaration agree, and each Holder of any Securities by his or her 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
Declaration, or in any suit against the Property Trustee for any action taken or
omitted by it as Property 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 14.02 shall not apply to any suit instituted by the
Property Trustee, to any suit instituted by any Holder of Preferred Securities,
or group of Holders of Preferred Securities, holding more than 10% in aggregate
liquidation amount of the outstanding Preferred Securities, or to any suit
instituted by any Holder of Preferred Securities for the enforcement of the
payment of the principal of (or premium, if any) or interest on the Debentures,
on or after the respective due dates expressed in such Debentures.

                  SECTION 14.03. Governing Law. This Declaration and the rights
of the parties hereunder shall be governed by and interpreted in accordance with
the laws of the State of Delaware and all rights and remedies shall be governed
by such laws without regard to the principles of conflict of laws of the State
of Delaware or any other jurisdiction that would call for the application of the
law of any jurisdiction other than the State of Delaware; provided,
<PAGE>   62
                                                                              55

however, that there shall not be applicable to the Trust, the Trustees or this
Declaration any provision of the laws (statutory or common) of the State of
Delaware pertaining to trusts that relate to or regulate, in a manner
inconsistent with the terms hereof (a) the filing with any court or governmental
body or agency of trustee accounts or schedules of trustee fees and charges, (b)
affirmative requirements to post bonds for trustees, officers, agents or
employees of a trust, (c) the necessity for obtaining court or other
governmental approval concerning the acquisition, holding or disposition of real
or personal property, (d) fees or other sums payable to trustees, officers,
agents or employees of a trust, (e) the allocation of receipts and expenditures
to income or principal, (f) restrictions or limitations on the permissible
nature, amount or concentration of trust investments or requirements relating to
the titling, storage or other manner of holding or investing trust assets or (g)
the establishment of fiduciary or other standards of responsibility or
limitations on the acts or powers of trustees that are inconsistent with the
limitations or liabilities or authorities and powers of the Trustees as set
forth or referenced in this Declaration. Section 3540 of Title 12 of the
Delaware Code shall not apply to the Trust.

                  SECTION 14.04. Headings. Headings contained in this
Declaration are inserted for convenience of reference only and do not affect the
interpretation of this Declaration or any provision hereof.

                  SECTION 14.05. Partial Enforceability. If any provision of
this Declaration, or the application of such provision to any Person or
circumstance, shall be held invalid, the remainder of this Declaration, or the
application of such provision to persons or circumstances other than those to
which it is held invalid, shall not be affected thereby.

                  SECTION 14.06. Counterparts. This Declaration may contain more
than one counterpart of the signature pages and this Declaration may be executed
by the affixing of the signature of the Sponsor and each of the Trustees to one
of such counterpart signature pages. All of such counterpart signature pages
shall be read as though one, and they shall have the same force and effect as
though all of the signers had signed a single signature page.

                  SECTION 14.07. Intention of the Parties. It is the intention
of the parties hereto that the Trust not be
<PAGE>   63
                                                                              56

classified for United States Federal income tax purposes as an association
taxable as a corporation or partnership but that the Trust be treated as a
grantor trust for United States Federal income tax purposes. The provisions of
this Declaration shall be interpreted to further this intention of the parties.

                  SECTION 14.08. Successors and Assigns. Whenever in this
Declaration any of the parties hereto is named or referred to, the successors
and assigns of such party shall be deemed to be included, and all covenants and
agreements in this Declaration by the Sponsor and the Trustees shall bind and
inure to the benefit of their respective successors and assigns, whether so
expressed.

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

                                   J. P. MORGAN & CO. INCORPORATED, as Sponsor

                                        by  /s/  Gene A. Capello
                                          --------------------------------------
                                          Name:
                                          Title:

                                             H. Christian Raymond, as Trustee,

                                                  by /s/ H. Christian Raymond
                                                    ----------------------------
                                                         H. Christian Raymond

                                             Andrew G. Kerber, as Trustee,

                                                  by /s/ Andrew G. Kerber
                                                    ----------------------------
                                                         Andrew G. Kerber
<PAGE>   64
                                                                              57

                                        Susan L. McCullin, as Trustee,

                                        by  /s/  Susan L. McCullin
                                          --------------------------------------
                                                 Susan L. McCullin

                                        FIRST TRUST OF NEW YORK, NATIONAL
                                        ASSOCIATION, as Property Trustee,

                                        by  /s/  David Leverich
                                          --------------------------------------
                                          Name:  DAVID LEVERICH
                                          Title: Vice President

                                        WILMINGTON TRUST COMPANY, as Delaware
                                        Trustee,

                                        by  /s/  Norma P. Closs
                                          --------------------------------------
                                          Name:  NORMA P. CLOSS
                                          Title: VICE PRESIDENT
<PAGE>   65
STATE OF NEW YORK,  )
                    )  ss.
COUNTY OF NEW YORK, )

                  BEFORE ME, the undersigned authority, on this day of December
4, 1996, personally appeared Gene A. Capello (on behalf of J.P. Morgan & Co.
Incorporated), H. Christian Raymond, Andrew G. Kerber and Susan McCullin, each
known to me (or proved to me by introduction upon the oath of a person known to
me) to be the person and officer, as the case may be, whose name is subscribed
to the foregoing instrument, and each acknowledged to me that he executed the
same as the act of such trust for the purposes and consideration herein
expressed and in the capacity therein stated.

                  GIVEN UNDER MY HAND AND SEAL THIS 4th day of December, 1996.

                                        /s/ Marion I. Pearson
                                        --------------------------------
                                        NOTARY PUBLIC, STATE OF NEW YORK
                                        Print Name: MARION I. PEARSON
                                        Commission Expires: 3/19/98

                                                     MARION I. PEARSON
                                              Notary Public, State of New York
                                                       No. 41-4964033
                                                 Qualified in Queens County
                                            Certificate Filed in New York County
                                              Commission Expires March 19, 1998
<PAGE>   66
STATE OF NEW YORK,  )
                    )  ss.
COUNTY OF NEW YORK, )

                  BEFORE ME, the undersigned authority, on this day of December
3, 1996, personally appeared DAVID LEVERICH of First Trust of New York, National
Association known to me (or proved to me by introduction upon the oath of a
person known to me) to be the person and officer whose names are subscribed to
the foregoing instrument, and acknowledged to me that he executed the same as
the act of such trust for the purposes and consideration herein expressed and in
the capacity therein stated.

                  GIVEN UNDER MY HAND AND SEAL THIS 3rd day of December, 1996.

(SEAL)

                                        /s/ Joanne E. Ilse
                                        --------------------------------
                                        NOTARY PUBLIC, STATE OF NEW YORK
                                        Print Name: Joanne E. Ilse
                                        Commission Expires: 10/4/97

                                                        JOANNE E. ILSE
                                               Notary Public, State of New York
                                                        No. 01IL5019680
                                                  Qualified in Queens County
                                              Commission Expires October 4, 1997
<PAGE>   67
STATE OF DELAWARE    )
                     )
COUNTY OF NEW CASTLE )

                  BEFORE ME, the undersigned authority, on this day of December
3, 1996, personally appeared NORMA P. CLOSS, Vice President of WILMINGTON TRUST
COMPANY, known to me (or proved to me by introduction upon the oath of a person
known to me), to be the person and officer whose name is subscribed to the
foregoing instrument, and acknowledged to me that she executed the same as the
act of such trust for the purposes and consideration herein expressed and in the
capacity therein stated.

                  GIVEN UNDER MY HAND AND SEAL THIS 3rd DAY OF DECEMBER, 1996.

(SEAL)

                                        /s/ Paula M. Sulecki
                                        --------------------------------
                                        NOTARY PUBLIC, STATE OF DELAWARE
                                        Print Name: Paula Sulecki
                                        Commission Expires: ____________

                                                      PAULA M. SULECKI
                                                        NOTARY PUBLIC
                                            My commission expires April 25, 1998

<PAGE>   68
                                                                       EXHIBIT A

                              CERTIFICATE OF TRUST

                                       OF

                               JPM CAPITAL TRUST I

                  THIS Certificate of Trust of JPM Capital Trust I (the
"Trust"), dated October 29, 1996, is being duly executed and filed by the
undersigned, as trustees, to form a business trust under the Delaware Business
Trust Act (12 Del. Code Section 3801 et seg.).

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

                  2. Delaware Trustee. The name and business address of the
trustee of the Trust with a principal place of business in the State of Delaware
is Wilmington Trust Company, a Delaware banking corporation, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890.

                  3 . Effective Date. This Certificate of Trust shall be
effective as of its filing.

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

                                        WILMINGTON TRUST COMPANY, as
                                        Delaware Trustee,

                                          by ________________________________
                                             Name:
                                             Title

                                        FIRST TRUST OF NEW YORK,
                                        NATIONAL ASSOCIATION, as
                                        Property Trustee,

                                          by ________________________________
                                             Name:
                                             Title:

<PAGE>   69
                                                                               2

_____________________________
Name:
      as Trustee

_____________________________
Name:
      as Trustee

______________________________
Name:
      as Trustee
<PAGE>   70
                                                                         ANNEX I

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

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

Preferred Securities _____________________________

Number ___________________________

CUSIP NO. ________________________
<PAGE>   71
                                                                               2

                   Certificate Evidencing Preferred Securities

                                       of

                               JPM Capital Trust I

                      7.54%; Cumulative Capital Securities
                (liquidation amount $1,000 per Capital Security)

                  JPM Capital Trust I, a statutory business trust created under
the laws of the State of Delaware (the "Trust"), hereby certifies that
(the "Holder") is the registered owner of           preferred securities of the
Trust representing undivided beneficial interests in the assets of the Trust
designated the 7.54% Cumulative Capital Securities (liquidation amount $1,000
per Capital Security) (the "Preferred Securities"). The transfer of Preferred
Securities is registrable on the books and records of the Trust, in person or by
a duly authorized attorney, upon surrender of this certificate duly endorsed and
in proper form for registration of transfer. The designations, rights,
privileges, restrictions, preferences and other terms and provisions of the
Preferred Securities are set forth in, and this certificate and the Preferred
Securities represented hereby are issued and shall in all respects be subject to
the terms and provisions of, the Amended and Restated Declaration of Trust of
the Trust dated as of December 4, 1996, as the same may be amended from time to
time (the "Declaration"), including the designation of the terms of Preferred
Securities as set forth in Exhibit B thereto. The Preferred Securities and the
Common Securities issued by the Trust pursuant to the Declaration represent
undivided beneficial interests in the assets of the Trust, including the
Debentures (as defined in the Declaration) issued by J.P. Morgan & Co.
Incorporated, a Delaware corporation ("JPM"), to the Trust pursuant to the
Indenture referred to in the Declaration. The Holder is entitled to the benefits
of the Guarantee Agreement of JPM dated as of December 4, 1996, (the
"Guarantee"), to the extent provided therein. The Trust will furnish a copy of
the Declaration, the Guarantee and the Indenture to the Holder without charge,
upon written request to the Trust, at its principal place of business or
registered office.

                  The Holder of this Certificate, by accepting this Certificate,
is deemed to have (i) agreed to the terms of the Indenture and the Debentures,
including that the
<PAGE>   72
                                                                               3

Debentures are subordinate and junior in right of payment to all Senior Debt (as
defined in the Indenture) as and to the extent provided in the Indenture and
(ii) agreed to the terms of the Guarantee, including that the Guarantee is
subordinate and junior in right of payment to all other indebtedness,
liabilities and obligations of JPM, including the Debentures, except those made
pari passu or subordinate by their terms, and senior to all capital stock now or
hereafter issued by JPM and to any guarantee now or hereafter entered into by
JPM in respect of any of its capital stock.

                  Upon receipt of this certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                  IN WITNESS WHEREOF, the Trustees of the Trust have executed
this certificate this __ day of _________ 199__ .

                                        JPM CAPITAL TRUST I,

                                           by _______________________________
                                              Name:
                                              Title: Trustee

                                           by _______________________________
                                              Name:
                                              Title: Trustee

Dated:

Countersigned and Registered:

First Trust of New York, National Association, as Transfer Agent and Registrar

By: _______________________________
         Authorized Officer
<PAGE>   73
                                                                               4
                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred
Security to:
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Insert assignee's social security or tax identification number)

_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
(Insert address and zip code of assignee)

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

Date: _____________________________

Signature: ________________________

NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME(S) AS
WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION
OR ENLARGEMENT OR ANY CHANGE WHATEVER.

<PAGE>   74
                                                                       EXHIBIT B

                                    TERMS OF
                              PREFERRED SECURITIES

                  Pursuant to Section 7.01 of the Amended and Restated
Declaration of Trust of JPM Capital Trust I dated as of December 4, 1996 (as
amended from time to time, the "Declaration"), the designations, rights,
privileges, restrictions, preferences and other terms and provisions of the
Preferred Securities are set forth below (each capitalized term used but not
defined herein having the meaning set forth in the Declaration):

                  1. Designation and Number. Preferred Securities of the Trust
with an aggregate liquidation amount in the assets of the Trust of
seven-hundred-fifty million Dollars ($750,000,000) and a liquidation amount in
the assets of the Trust of $1,000 per Preferred Security are hereby designated
as "7.54% Cumulative Capital Securities". The Preferred Security Certificates
evidencing the Preferred Securities shall be substantially in the form attached
hereto as Annex I, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice or to conform
to the rules of any stock exchange on which the Preferred Securities are listed.
In connection with the issuance and sale of the Preferred Securities and the
Common Securities, the Trust will purchase, as trust assets, Debentures of JPM
having an aggregate principal amount equal to the aggregate liquidation amount
of the Preferred Securities and the Common Securities so issued and bearing
interest at an annual rate equal to the annual Distribution rate on the
Preferred Securities and the Common Securities and having payment and redemption
provisions which correspond to the payment and redemption provisions of the
Preferred Securities and the Common Securities.

                  2. Distributions. (a) Distributions payable on each Preferred
Security will be fixed at a rate per annum of 7.54% (the "Coupon Rate")
of the stated liquidation amount of $1,000 per Preferred Security. Distributions
in arrears for more than one semi-annual interest period will bear interest at
the rate per annum of 7.54% thereof (to the extent permitted by law), compounded
semi-annually. The term "Distributions" as used in these terms means such
periodic cash distributions and any such interest payable unless otherwise
stated. A Distribution will be made by the Property Trustee only to the extent
that interest payments are made in respect of the Debentures held by the
Property
<PAGE>   75
                                                                               2

Trustee. The amount of Distributions payable for any period will be computed for
any semi-annual Distribution period on the basis of a 360-day year of twelve
30-day months.

                  (b) Distributions on the Preferred Securities will be
cumulative, will accrue from December 4, 1996 and will, be payable semi-annually
in arrears, on January 15 and July 15 of each year commencing on July 15, 1997,
except as otherwise described below, but only if and to the extent that interest
payments are made in respect of the Debentures held by the Property Trustee. So
long as JPM is not in default in the payment of interest on the Debentures, JPM
shall have the right under the Indenture for the Debentures to defer payments of
interest by extending the interest payment period from time to time on the
Debentures for a period not to exceed 10 consecutive semi-annual interest
periods (a "Deferral Period"). During any such Deferral Period, semi-annual
Distributions will continue to accrue with interest thereon (to the extent
permitted by applicable law) at the rate of 7.54% per annum, compounded
semi-annually. Prior to the termination of any such Deferral Period, JPM may
further extend such Deferral Period; provided that such Deferral Period together
with all such previous and further extensions thereof may not exceed 10
consecutive semi-annual interest periods. Upon the termination of any Deferral
Period and the payment of all amounts then due, JPM may commence a new Deferral
Period, subject to the above requirements. Payments of accrued Distributions
will be payable to Holders of Preferred Securities as they appear on the books
and records of the Trust on the record date for the first interest payment date
occurring at or after the end of the Deferral Period.

                  (c) Distributions on the Preferred Securities will be payable
promptly by the Property Trustee (or other Paying Agent) upon receipt of
immediately available funds to the Holders thereof as they appear on the books
and records of the Trust on the relevant record dates. While the Preferred
Securities remain in book-entry only form, the relevant record dates shall be
one Business Day prior to the relevant Distribution date, and if the Preferred
Securities are no longer in book-entry only form, the relevant record dates will
be the June 30th or December 31st immediately preceding the relevant
Distribution date, which record and payment dates correspond to the record and
interest payment dates for the Debentures. Distributions payable on any
Preferred Securities that are not punctually paid on any Distribution payment
date as a result of JPM having failed
<PAGE>   76
                                                                               3

to make the corresponding interest payment on the Debentures will forthwith
cease to be payable to the Person in whose name such Preferred Security is
registered on the relevant record date, and such defaulted Distribution will
instead be payable to the Person in whose name such Preferred Security is
registered on the special record date established by the Regular Trustees, which
record date shall correspond to the special record date or other specified date
determined in accordance with the Indenture; provided, however, that
Distributions shall not be considered payable on any Distribution payment date
falling within a Deferral Period unless JPM has elected to make a full or
partial payment of interest accrued on the Debentures on such Distribution
payment date. Subject to any applicable laws and regulations and the provisions
of the Declaration, each payment in respect of the Preferred Securities will be
made as described in paragraph 9 hereof. If any date on which Distributions are
payable on the Preferred Securities is not a Business Day, then payment of the
Distribution payable on such date will be made on the next succeeding day that
is a Business Day (and without any interest or other payment in respect of any
such delay) except that, if such Business Day 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 such date.

                  (d) All Distributions paid with respect to the Preferred
Securities and the Common Securities will be paid pro rata to the Holders
thereof entitled thereto. If an Event of Default has occurred and is continuing,
the Preferred Securities shall have a priority over the Common Securities with
respect to Distributions.

                  (e) In the event that there is any money or other property
held by or for the Trust that is not accounted for under the Declaration, such
money or property shall be distributed pro rata among the Holders of the
Preferred Securities and the Common Securities.

                  3. Liquidation Distribution upon Dissolution. In the event of
any voluntary or involuntary dissolution of the Trust, the Holders of the
Preferred Securities and the Common Securities at the date of the dissolution
will be entitled to receive pro rata solely out of the assets of the Trust
available for distribution to Holders of Preferred Securities and Common
Securities, after paying or making reasonable provision to pay all claims and
obligations of the Trust in accordance with Section 3808(e) of the Business
<PAGE>   77
                                                                               4

Trust Act, an amount equal to the aggregate of the stated liquidation amount of
$1,000 per Preferred Security and Common Security plus accrued and unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"), unless such dissolution occurs in connection with a Tax Event or
an Investment Company Event in which, in accordance with Section 4(c),
Debentures in an aggregate principal amount equal to the aggregate stated
liquidation amount of such Preferred Securities and Common Securities and
bearing accrued and unpaid interest in an amount equal to the accrued and unpaid
Distributions on such Preferred Securities and Common Securities, shall be
distributed pro rata to the Holders of the Preferred Securities and Common
Securities in exchange for such Securities.

                  If, upon any such dissolution, the Liquidation Distribution
can be paid only in part because the Trust has insufficient assets available
to pay in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust on the Preferred Securities and the Common Securities
shall be paid, subject to the next paragraph, on a pro rata basis.

                  Holders of Common Securities will be entitled to receive
Liquidation Distributions upon any such dissolution pro rata with Holders of
Preferred Securities, except that, if an Event of Default has occurred and is
continuing, the Preferred Securities shall have a priority over the Common
Securities with respect to such Liquidation Distribution.

                  4. Redemption and Distribution of Debentures. The Preferred
Securities and the Common Securities may only be redeemed if Debentures having
an aggregate principal amount equal to the aggregate liquidation amount of the
Preferred Securities and the Common Securities are repaid, redeemed or
distributed as set forth below:

                  (a) Upon the repayment of the Debentures, in whole or in part,
whether at maturity or upon redemption at any time or from time to time on or
after January 15, 2007, the proceeds of such repayment will be promptly applied
to redeem pro rata Preferred Securities and Common Securities having an
aggregate liquidation amount equal to the aggregate principal amount of the
Debentures so repaid, upon not less than 30 nor more than 60 days notice, at a
redemption price equal to the following prices expressed in
<PAGE>   78
                                                                               5

percentages of the stated liquidation amount. If redeemed during the 12-month
period beginning January 15:

<TABLE>
<CAPTION>
                                           Redemption
         Year                                 Price
         ----                                 -----
<S>                                        <C>
         2007 ..........................     103.770%
         2008 ..........................     103.393%
         2009 ..........................     103.016%
         2010 ..........................     102.639%
         2011 ..........................     102.262%
         2012 ..........................     101.885%
         2013 ..........................     101.508%
         2014 ..........................     101.131%
         2015 ..........................     100.754%
         2016 ..........................     100.377%
</TABLE>

         and at 100% on or after January 15, 2017

plus an amount equal to accrued and unpaid Distributions thereon to the date of
redemption, payable in cash (the "Redemption Price"). The date of any such
repayment of Preferred Securities and Common Securities shall be established to
coincide with the repayment date of the Debentures.

                  (b) If fewer than all the outstanding Preferred Securities and
Common Securities are to be so redeemed, the Preferred Securities and the Common
Securities will be redeemed pro rata, it being understood that Preferred
Securities held of record by a Clearing Agency or nominee will be redeemed as
described in paragraph 4 (f) (ii) below. If a partial redemption would result in
the delisting of the Preferred Securities by any national securities exchange or
other organization on which the Preferred Securities are then listed, JPM
pursuant to the Indenture, will only redeem Debentures in whole and the Trust
will only redeem the Preferred Securities in whole.

                  (c) If, at any time, a Tax Event or an Investment Company
Event (each as hereinafter defined, and each, along with a Capital Treatment
Event, a "Special Event") shall occur and be continuing, the Regular Trustees
shall, unless the, Debentures are redeemed in the limited circumstances
described below, dissolve the Trust and, after paying or making reasonable
provision to pay all claims and obligations of the Trust in accordance with
Section 3808 (e)
<PAGE>   79
                                                                               6

of the Business Trust Act, cause Debentures held by the Property Trustee having
an aggregate principal amount equal to the aggregate stated liquidation amount
of, and bearing accrued and unpaid interest equal to accrued and unpaid
Distributions on, and having the same record date for payment as, the Preferred
Securities and the Common Securities, to be distributed to the Holders of the
Preferred Securities and the Common Securities on a pro rata basis in
liquidation of such Holders' interests in the Trust, within 90 days following
the occurrence of such Special Event (the "90 Day Period"); provided, however,
that in the case of the occurrence of a Tax Event, as a condition of such
dissolution and distribution, the Regular Trustees shall have received an
opinion of a nationally recognized independent tax counsel experienced in such
matters (a "No Recognition Opinion"), which opinion may rely on any then
applicable published revenue ruling of the Internal Revenue Service, to the
effect that the Holders of the Preferred Securities will not recognize any gain
or loss for United States Federal income tax purposes as a result of the
dissolution of the Trust and distribution of Debentures; and provided further
that, if and as long as at the time there is available to the Trust the
opportunity to eliminate, within the 90 Day Period, the Special Event by taking
some ministerial action, such as filing a form or making an election, or
pursuing some other similar reasonable measure that has no adverse effect on the
Trust, JPM or the Holders of the Preferred Securities (a "Ministerial Action"),
the Trust will pursue such Ministerial Action in lieu of dissolution.

                  If in the case of the occurrence of a Tax Event, (i) the
Regular Trustees have received an opinion (a "Redemption Tax opinion") of
nationally recognized independent tax counsel experienced in such matters that,
as a result of a Tax Event, there is more than an insubstantial risk that JPM
would be precluded from deducting the interest on the Debentures for United
States Federal income tax purposes even if the Debentures were distributed to
the Holders of Preferred Securities and Common Securities in liquidation of such
Holder's interest in the Trust as described in this paragraph 4 (c) or (ii) the
Regular Trustees shall have been informed by such tax counsel that a No
Recognition opinion cannot be delivered to the Trust, JPM shall have the right
at any time, subject to JPM having received prior approval of the Federal
Reserve to do so if then required under applicable capital guidelines or
policies of the Federal Reserve, upon not less than 30 nor
<PAGE>   80
                                                                               7

more than 60 days notice, to redeem the Debentures in whole but not in part for
cash at the Redemption Price within 90 days following the occurrence of such Tax
Event, and, promptly following such redemption, Preferred Securities and Common
Securities with an aggregate liquidation amount equal to the aggregate principal
amount of the Debentures so redeemed will be redeemed by the Trust at the
Redemption Price on a pro rata basis; provided, however, that, if at the time
there is available to JPM or the Regular Trustees on behalf of the Trust the
opportunity to eliminate, within such 90 day period, the Tax Event by taking
some Ministerial Action, JPM or the Regular Trustees on behalf of the Trust will
pursue such measure in lieu of redemption; and provided further that JPM shall
have no right to redeem the Debentures while the Regular Trustees on behalf of
the Trust are pursuing such Ministerial Action. The Common Securities will be
redeemed pro rata with the Preferred Securities, except that if an Event of
Default under the Indenture has occurred and is continuing, the Preferred
Securities will have a priority over the Common Securities with respect to
payment of the Redemption Price.

                  "Adjusted Treasury Rate" means, with respect to any prepayment
date, the rate per annum equal to the semi-annual equivalent yield to maturity
of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such prepayment date plus (i) prior to or on
January 15, 1998, 0.9%, and (ii) after January 15, 1998, 0.5%.

                  "Capital Treatment Event" means that JPM has reasonably
determined that, as the result of the occurrence of a change in law or
regulation or a change in the interpretation or application of law or regulation
by any legislative body, court, governmental agency or regulatory authority,
there is more than an insubstantial risk that JPM will not be able to treat the
minority interest in the Trust as "Tier 1 capital" (or the equivalent) for
purposes of the capital adequacy guidelines of the Federal Reserve, as then in
effect and applicable to JPM.

                  "Comparable Treasury Issue" means the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
remaining term through January 15, 2007 of the Debentures that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt
<PAGE>   81
                                                                               8

securities of comparable maturity to the remaining term through January 15, 2007
of the Junior Subordinated Debentures.

                  "Comparable Treasury Price" means, with respect to any
prepayment date, (i) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third Business Day preceding such prepayment date, as set forth in the
most recent weekly statistical release (or any successor release) published by
the Federal Reserve and designated "H.15 (519)" or (ii) if such release (or any
successor release) is not published or does not contain such prices during the
week preceding such Business Day, (A) the average of the Reference Treasury
Dealer Quotations for such prepayment date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (B) if the Debenture
Trustee obtains fewer than three such Reference Treasury Dealer Quotations, the
average of all such Quotations.

                  "Investment Company Event" means that the Regular Trustees
shall have received an opinion of nationally recognized independent counsel
experienced in practice under the Investment Company Act that, as a result of
the occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority (a "Change in 1940 Act Law"), there is more than
an insubstantial risk that the Trust is or will be considered an Investment
Company which is required to be registered under the Investment Company Act,
which Change in 1940 Act Law becomes effective on or after November 26, 1996.

                  "Quotation Agent" means J.P. Morgan Securities Inc. and its
respective successors; provided, however, that if the foregoing shall cease to
be a primary U.S. Government securities dealer in New York City (a "Primary
Treasury Dealer"), the Corporation shall substitute therefor another Primary
Treasury Dealer. "Reference Treasury Dealer" means (i) the Quotation Agent and
(ii) any other Primary Treasury Dealer selected by the Debenture Trustee after
consultation with JPM.

                  The "Redemption Price", in the case of a redemption following
a Tax Event or Capital Treatment Event prior to January 15, 2007, shall equal
for each Common
<PAGE>   82
                                                                               9

Security the Make-Whole Amount for a corresponding $1,000 principal amount of
Debentures together with accrued Distributions to but excluding the date fixed
for redemption. The "Make-Whole Amount" shall be equal to the greater of (i)
100% of the principal amount of such Debentures or (ii) as determined by a
Quotation Agent, the sum of the present values of the remaining scheduled
payments of principal, premium and interest thereon through January 15, 2007
discounted to the prepayment date on a semi-annual basis (assuming a 360-day
year consisting of 30-day months) at the Adjusted Treasury Rate.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any prepayment date, the average, as
determined by the Indenture Trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Indenture Trustee by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such prepayment date.

                  "Tax Event" means that the Regular Trustees shall have
obtained an opinion of nationally recognized independent tax counsel experienced
in such matters (a "Dissolution Tax Opinion") to the effect that, on or after
November 26, 1996 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 or taxing authority thereof or
therein, (b) any amendment to, or change in, an interpretation or application of
any such laws or regulations by any legislative body, court, governmental agency
or regulatory authority (including the enactment of any legislation and the
publication of any judicial decision or regulatory determination), (c) any
interpretation or pronouncement that provides for a position with respect to
such laws or regulations that differs from the theretofore generally accepted
position or (d) any action taken by any governmental agency or regulatory
authority, which amendment or change is enacted, promulgated, issued or
announced or which interpretation or pronouncement is issued or announced or
which action is taken, in each case on or after November 26, 1996, there is more
than an insubstantial risk that (i) the Trust is, or will be within 90 days of
the date thereof, subject to United States Federal income tax with respect to
income accrued or received on the Debentures, (ii) the Trust is, or will be
within 90 days of the date
<PAGE>   83
                                                                              10

thereof, subject to more than a de minimis amount of taxes, duties or other
governmental charges or (iii) interest payable by JPM to the Trust on the
Debentures is not, or within 90 days of the date thereof will not be, deductible
by JPM for United States Federal income tax purposes.

                  On the date fixed for any distribution of Debentures, upon
dissolution of the Trust, (i) the Common Securities will no longer be deemed to
be outstanding and (ii) any certificates representing Common Securities will be
deemed to represent beneficial interests in the Debentures having an aggregate
principal amount equal to the stated liquidation amount of, and bearing accrued
and unpaid interest equal to accrued and unpaid Distributions on, such Common
Securities until such certificates are presented to JPM or its agent for
transfer or reissuance.

                  (d) The Trust may not redeem fewer than all the outstanding
Common Securities unless all accrued and unpaid Distributions have been paid on
all Common Securities for all semi-annual Distribution periods terminating on or
prior to the date of redemption.

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

                  (ii) In the event that fewer than all the outstanding Common
Securities are to be redeemed, the Common
<PAGE>   84
                                                                              11

Securities to be redeemed will be redeemed pro rata from each Holder of Common
Securities (subject to adjustment to eliminate fractional Common Securities).

                  (iii) If the Trust gives a Redemption/Distribution Notice in
respect of a redemption of Common Securities as provided in this paragraph 4
(which notice will be irrevocable), then immediately prior to the close of
business on the redemption date, provided that JPM has paid to the Property
Trustee in immediately available funds a sufficient amount of cash in connection
with the related redemption or maturity of the Debentures Distributions will
cease to accrue on the Common Securities called for redemption, such Common
Securities will no longer be deemed to be outstanding and all rights of Holders
of such Common Securities so called for redemption will cease, except the right
of the Holders of such Common Securities to receive the Redemption Price, but
without interest on such Redemption Price. Neither the Trustees nor the Trust
shall be required to register or cause to be registered the transfer of any
Common Securities which have been so called for redemption. If any date fixed
for redemption of Common Securities is not a Business Day, then payment of the
Redemption Price payable on such date will be made on the next succeeding day
that is a Business Day (and without any interest or other payment in respect of
any such delay), except that, if such Business Day falls in the next calendar
year, such payment will be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on such date fixed for
redemption. If payment of the Redemption Price in respect of Common Securities
is improperly withheld or refused and not paid by the Property Trustee,
Distributions on such Common Securities will continue to accrue, from the
original redemption date to the date of payment, in which case the actual
payment date will be considered the date fixed for redemption for purposes of
calculating the Redemption Price.

                  (iv) Redemption/Distribution Notices shall be sent by the
Regular Trustees on behalf of the Trust to the Holders of the Common Securities.

                  (v) Upon the date of dissolution of the Trust and distribution
of Debentures as a result of the occurrence of a Special Event, Common Security
Certificates shall be deemed to represent beneficial interests in the
Debentures so distributed, and the Common Securities will no longer be deemed
outstanding and may be canceled by the Regular
<PAGE>   85
                                                                              12

Trustees. The Debentures so distributed shall have an aggregate principal amount
equal to the aggregate liquidation amount of the Common Securities so
distributed.

                  5. Voting Rights. (a) Except as provided under paragraph 5(b)
below and as otherwise required by law and the Declaration, the Holders of the
Common Securities will have no voting rights.

                  (b) Holders of Common Securities have the sole right under the
Declaration to increase or decrease the number of Trustees, and to appoint,
remove or replace a Trustee, any such increase, decrease, appointment, removal
or replacement to be approved by Holders of Common Securities representing a
Majority in liquidation amount of the Common Securities.

                  If any proposed amendment to the Declaration provides for, or
the Regular Trustees otherwise propose to effect, (i) any action that would
adversely affect the powers, preferences or special rights of the Securities,
whether by way of amendment to the Declaration or otherwise, or (ii) the
dissolution, winding-up or termination of the Trust, other than in connection
with the distribution of Debentures held by the Property Trustee, upon the
occurrence of a Special Event or in connection with the redemption of Common
Securities as a consequence of a redemption of Debentures, then the Holders of
outstanding Securities will be entitled to vote on such amendment or proposal as
a class and such amendment or proposal shall not be effective except with the
approval of the Holders of Securities representing 66-2/3% in liquidation amount
of such Securities; provided, however, that (A) if any amendment or proposal
referred to in clause (i) above would adversely affect only the Preferred
Securities or the Common Securities, then only the affected class will be
entitled to vote on such amendment or proposal and such amendment or proposal
shall not be effective except with the approval of 66-2/3 in liquidation amount
of such class of Securities, (B) the rights of Holders of Common Securities
under Article V of the Declaration to increase or decrease the number of, and to
appoint, replace or remove, Trustees shall not be amended without the consent of
each Holder of Common Securities, and (C) amendments to the Declaration shall be
subject to such further requirements as are set forth in Sections 12.1 and 12.2
of the Declaration.
<PAGE>   86
                                                                              13

                  In the event the consent of the Property Trustee as the holder
of the Debentures, is required under the Indenture with respect to any
amendment, modification or termination of the Indenture or the Debentures, the
Property Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination. The
Property Trustee shall vote with respect to such amendment, modification or
termination as directed by a Majority in liquidation amount of the Securities
voting together as a single class; provided that where such amendment,
modification or termination of the Indenture requires the consent or vote of (1)
holders of Debentures representing a specified percentage greater than a
majority in principal amount of the Debentures or (2) each holder of Debentures,
the Property Trustee may vote only with respect to that amendment, modification
or termination as directed by, in the case of clause (1) above, the vote of
Holders of Securities representing such specified percentage of the aggregate
liquidation amount of the Securities, or, in the case of clause (2) above, each
Holder of Securities; and provided, further, that the Property Trustee shall be
under no obligation to take any action in accordance with the directions of the
Holders of the Securities unless the Property Trustee shall have received, at
the expense of the Sponsor, an opinion of nationally recognized independent tax
counsel recognized as an expert in such matters to the effect that the Trust
will not be classified for United States Federal income tax purposes as an
association taxable as a corporation or a partnership on account of such action
and will be treated as a grantor trust for United States Federal income tax
purposes following such action.

                  Subject to Section 2.6 of the Declaration and the provisions
of this and the next succeeding paragraph, the Holders of a Majority in
liquidation amount of the Common Securities, voting separately as a class, shall
have the right to (A) on behalf of all Holders of Common Securities, waive any
past default that is waivable under the Declaration (subject to, and in
accordance with, the Declaration) and (B) direct the time, method and place of
conducting any proceeding for any remedy available to the Property Trustee, or
exercising any trust or power conferred upon the Property Trustee under the
Declaration, including the right to direct the Property Trustee, as holder of
the Debentures, to (i) direct the time, method and place of conducting any
proceeding for any remedy available to the Debenture Trustee, or exercising any
trust or power
<PAGE>   87
                                                                              14

conferred on the Debenture Trustee with respect to the Debentures, (ii) waive
any past default and its consequences that is waivable under Section 6.06 of the
Indenture, or (iii) exercise any right to rescind or annul a declaration that
the principal of all the Debentures shall be due and payable; provided that
where the taking of any action under the Indenture requires the consent or vote
of (1) holders of Debentures representing a specified percentage greater than a
majority in principal amount of the Debentures or (e) each holder of Debentures,
the Property Trustee may take such action only if directed by, in the case of
clause (1) above, the vote of Holders of Common Securities representing such
specified percentage of the aggregate liquidation amount of the Common
Securities, or, in the case of clause (2) above, each Holder of Common
Securities. Pursuant to this paragraph, the Property Trustee shall not revoke,
or take any action inconsistent with, any action previously authorized or
approved by a vote of the Holders of the Preferred Securities, and shall not
take any action in accordance with the direction of the Holders of the Common
Securities under this paragraph if the action is prejudicial to the Holders of
Preferred Securities. Other than with respect to directing the time, method and
place of conducting any proceeding for any remedy available to the Property
Trustee or the Debenture Trustee as set forth above, the Property Trustee shall
be under no obligation to take any of the foregoing actions at the direction of
the Holders of Common Securities unless the Property Trustee shall have
received, at the expense of the Sponsor, an opinion of nationally recognized
independent tax counsel recognized as expert in such matters to the effect that
the Trust will not be classified for United States Federal income tax purposes
as an association taxable as a corporation or a partnership on account of such
action and will be treated as a grantor trust for United States income tax
purposes following such action.

                  Notwithstanding any other provision of these terms, each
Holder of Common Securities will be deemed to have waived any Event of Default
with respect to the Common Securities and its consequences until all Events of
Default with respect to the Preferred Securities have been cured, waived by the
Holders of Preferred Securities as provided in the Declaration or otherwise
eliminated, and until all Events of Default with respect to the Preferred
Securities have been so cured, waived by the Holders of Preferred Securities or
otherwise eliminated, the Property Trustee will be deemed to be acting solely on
behalf of the Holders
<PAGE>   88
                                                                              15

of Preferred Securities and only the Holders of the Preferred Securities will
have the right to direct the Property Trustee in accordance with the terms of
the Declaration or of the Securities. In the event that any Event of Default
with respect to the Preferred Securities is waived by the Holders of Preferred
Securities as provided in the Declaration, the Holders of Common Securities
agree that such waiver shall also constitute the waiver of such Event of Default
with respect to the Common Securities for all purposes under the Declaration
without any further act, vote or consent of the Holders of the Common
Securities.

                  A waiver of an Indenture Event of Default by the Property
Trustee at the direction of the Holders of the Preferred Securities will
constitute a waiver of the corresponding Event of Default under the Declaration
in respect of the Securities.

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

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

                  6. Pro Rata Treatment. A reference in these terms of the
Common Securities to any payment, distribution or treatment as being "pro rata"
shall mean pro rata to each Holder of Securities according to the aggregate
liquidation amount of the Securities held by the relevant Holder in relation to
the aggregate liquidation amount of all Securities outstanding unless, in
relation to a payment, an Event of Default has occurred and is continuing, in
which case any funds available to make such payment shall be paid
<PAGE>   89
                                                                              16

first to each Holder of the Preferred Securities pro rata according to the
aggregate liquidation amount of Preferred Securities held by the relevant Holder
relative to the aggregate liquidation amount of all Preferred Securities
outstanding, and only after satisfaction of all amounts owed to the Holders of
the Preferred Securities, to each Holder of Common Securities pro rata according
to the aggregate liquidation amount of Common Securities held by the relevant
Holder relative to the aggregate liquidation amount of all Common Securities
outstanding.

                  7. Ranking. The Common Securities rank pari passu and payment
thereon will be made pro rata with the Preferred Securities except that where an
Event of Default occurs and is continuing, the rights of Holders of Common
Securities to payment in respect of Distributions and payments upon liquidation,
redemption or otherwise are subordinate to the rights of Holders of the
Preferred Securities.

                  8. Mergers, Consolidations or Amalgamations. The Trust may not
consolidate, amalgamate, merge with or into, or be replaced by, or sell,
transfer or lease all or substantially all its properties and assets to, any
Person.

                  9. Transfers, Exchanges, Method Payments. Payment of
Distributions and payments on redemption of the Common Securities will be
payable, the transfer of the Common Securities will be registrable, and Common
Securities will be exchangeable for Common Securities of other denominations of
a like aggregate liquidation amount, at the principal corporate trust office of
the Property Trustee in The City of New York; provided that payment of
Distributions may be made at the option of the Regular Trustees on behalf of the
Trust by check mailed to the address of the Persons entitled thereto and that
the payment on redemption of any Common Security will be made only upon
surrender of such Common Security to the Property Trustee. Notwithstanding the
foregoing, transfers of Common Securities are subject to conditions set forth in
Section 9.1(c) of the Declaration.

                  10. Acceptance of Indenture. Each Holder of Common Securities,
by the acceptance thereof, agrees to the provisions of the Indenture and the
Debentures, including the subordination provisions thereof.
<PAGE>   90
                                                                              17

                  11. No Preemptive Rights. The Holders of Common Securities
shall have no preemptive rights to subscribe to any additional Common Securities
or Preferred Securities.

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

<PAGE>   91
                                                                         Annex I

                          TRANSFER OF THIS CERTIFICATE
                          IS SUBJECT TO THE CONDITIONS
                          SET FORTH IN THE DECLARATION
                               REFERRED TO BELOW

Certificate Number                                   Number of Common Securities

                     Certificate Evidencing Common Securities
                                       of
                               JPM Capital Trust I

                          7.54% Common Trust Securities
                 (liquidation amount $1,000 per Common Security)

                  JPM Capital Trust I, a statutory business trust formed under
the laws of the State of Delaware (the "Trust"), hereby certifies that J.P.
Morgan & Co. Incorporated (the "Holder") is the registered owner of
twenty-three-thousand two-hundred (23,200) common securities of the Trust
representing undivided beneficial interests in the assets of the Trust
designated the "7.54% Common Trust Securities" (liquidation amount $1,000 per
Common Security) (the "Common Securities"). The transfer of Common Securities is
registrable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in
proper form for registration of transfer and satisfaction of the other
conditions set forth in the Declaration (as defined below) including, without
limitation, Section 9.01(c) thereof. The designations, rights, privileges,
restrictions, preferences and other terms and provisions of the Common
Securities are set forth in, and this certificate and the Common Securities
represented hereby are issued and shall in all respects be subject to the terms
and provisions of, the Amended and Restated Declaration of Trust of the Trust
dated as of December 4, 1996, as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of Common Securities as
set forth in Exhibit C thereto. The Common Securities and the Preferred
Securities issued by the Trust pursuant to the Declaration represent undivided
beneficial interests in the
<PAGE>   92
                                                                               2

assets of the Trust, including the Debentures (as defined in the Declaration)
issued by J. P. Morgan & Co. Incorporated, a Delaware corporation, to the Trust
pursuant to the Indenture referred to in the Declaration. The Trust will furnish
a copy of the Declaration and the Indenture to the Holder without charge upon
written request to the Trust at its principal place of business or registered
office.

The Holder of this Certificate, by accepting this Certificate, is deemed to have
agreed to the terms of the Indenture and the Debentures, including that the
Debentures are subordinate and junior in right of payment to all Senior Debt (as
defined in the Indenture) as and to the extent provided in the Indenture.
<PAGE>   93
                                                                               3

                  Upon receipt of this certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder.

                  IN WITNESS WHEREOF, the Trustees of the Trust have executed
this certificate this 4th day of December 1996.

                                 JPM CAPITAL TRUST I,

                                    by __________________________________,
                                       Name:
                                       Title: Trustee

                                    by __________________________________,
                                       Name:
                                       Title: Trustee

Dated:

Countersigned and Registered:

First Trust of New York, National Association Transfer Agent and Registrar

by ______________________________
         Authorized Officer
<PAGE>   94
                                                                               4

                                   ASSIGNMENT

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

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

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

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Insert address and zip code of assignee) and irrevocably appoints

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

Date: ______________________

Signature: ________________________

(Sign exactly as your name appears on the other side of this Common Security
Certificate)
<PAGE>   95
                                                                       EXHIBIT C

                                    TERMS OF
                               COMMON SECURITIES

                  Pursuant to Section 7.1 of the Amended and Restated
Declaration of Trust of JPM Capital Trust I dated as of December 4, 1996 (as
amended from time to time, the "Declaration"), the designations, rights,
privileges, restrictions, preferences and other terms and provisions of the
Common Securities are set forth below (each capitalized term used but not
defined herein having the meaning set forth in the Declaration):

                  1. Designation and Number. Common Securities of the Trust with
an aggregate liquidation amount in the assets of the Trust of
twenty-three-million two-hundred-thousand Dollars ($23,200,000) and a
liquidation amount in the assets of the Trust of $1,000 per Common Security are
hereby designated as "7.54% Common Trust Securities". The Common Security
Certificates evidencing the Common Securities shall be substantially in the form
attached hereto as Annex I, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice. The Common
Securities are to be issued and sold to J.P. Morgan & Co. Incorporated ("JPM")
in consideration of $23,200,000 in cash. In connection with the issuance and
sale of the Preferred Securities and the Common Securities, the Trust will
purchase, as trust assets, Debentures of JPM having an aggregate principal
amount equal to the aggregate liquidation amount of the Preferred Securities and
the Common Securities so issued, and bearing interest at an annual rate equal to
the annual Distribution rate on the Preferred Securities and the Common
Securities and having payment and redemption provisions which correspond to the
payment and redemption provisions of the Preferred Securities and the Common
Securities.

                  2. Distributions. (a) Distributions payable on each Common
Security will be fixed at a rate per annum of 7.54% (the "Coupon Rate") of the
stated liquidation amount of $1,000 per Common Security. Distributions in
arrears for more than one semi-annual interest period will bear interest at the
rate per annum of 7.54% thereof (to the extent permitted by applicable law),
compounded semi-annually. The term "Distributions" as used in these terms means
such periodic cash distributions and any such interest payable unless otherwise
stated. A Distribution will be made by the Property Trustee only to the extent
that interest payments
<PAGE>   96
                                                                               2

are made in respect of the Debentures held by the Property Trustee. The amount
of Distributions payable for any period will be computed for any semi-annual
Distribution period on the basis of a 360-day year of twelve 30-day months.

                  (b) Distributions on the Common Securities will be cumulative,
will accrue from December 4, 1996 and will be payable semi-annually in arrears,
on January 15 and July 15 of each year, commencing on July 15, 1997, except as
otherwise described below, but only if and to the extent that interest payments
are made in respect of the Debentures held by the Property Trustee. So long as
JPM is not in default in the payment of interest on the Debentures, JPM shall
have the right under the Indenture for the Debentures to defer payments of
interest by extending the interest payment period from time to time on the
Debentures for a period not to exceed 10 consecutive semi-annual interest
periods (each, a "Deferral Period"). During any such Deferral Period,
semi-annual Distributions will continue to accrue with interest thereon (to the
extent permitted by applicable law) at the rate of 7.54% per annum, compounded
semi-annually. Prior to the termination of any such Deferral Period, JPM may
further extend such Deferral Period; provided that such Deferral Period,
together with all such previous and further extensions thereof, may not exceed
10 consecutive semi-annual interest periods. Upon the termination of any
Deferral Period and the payment of all amounts then due, JPM may commence a new
Deferral Period, subject to the above requirements. Payments of accrued
Distributions will be payable to Holders of Common Securities as they appear on
the books and records of the Trust on the record date for the first interest
payment date occurring at or after the end of the Deferral Period.

                  (c) Distributions on the Common Securities will be payable
promptly by the Property Trustee (or other Paying Agent) upon receipt of
immediately available funds to the Holders thereof as they appear on the books
and records of the Trust on the relevant record dates which will be one Business
Day prior to the relevant Distribution date unless the Preferred Securities are
no longer in book-entry only form, in which event the relevant record dates will
be the June 30th or December 31st immediately preceding the relevant
Distribution date, which record and payment dates correspond to the record and
interest payment dates for the Debentures. Distributions payable on any Common
Securities that are not punctually paid on any Distribution date as a result of
JPM having failed to make the corresponding
<PAGE>   97
                                                                               3

interest payment on the Debentures will forthwith cease to be payable to the
Person in whose name such Common Security is registered on the relevant record
date, and such defaulted Distribution will instead be payable to the Person in
whose name such Common Security is registered on the special record date
established by the Regular Trustees, which record date shall correspond to the
special record date or other specified date determined in accordance with the
Indenture; provided, however, that Distributions shall not be considered payable
on any Distribution payment date falling within a Deferral Period unless JPM has
elected to make a full or partial payment of interest accrued on the Debentures
on such Distribution payment date. Subject to any applicable laws and
regulations and the provisions of the Declaration, each payment in respect of
the Common Securities will be made as described in paragraph 9 hereof. If any
date on which Distributions are payable on the Common Securities is not a
Business Day, then payment of the Distribution payable on such date will be made
on the next succeeding day that is a Business Day (and without any interest or
other payment in respect of any such delay) except that, if such Business Day
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 such date.

                  (d) All Distributions paid with respect to the Common
Securities and the Preferred Securities will be paid pro rata to the Holders
thereof entitled thereto. If an Event of Default has occurred and is continuing,
the Preferred Securities shall have a priority over the Common Securities with
respect to Distributions.

                  (e) In the event that there is any money or other property
held by or for the Trust that is not accounted for under the Declaration, such
money or property shall be distributed pro rata among the Holders of the
Preferred Securities and the Common Securities.

                  3. Liquidation Distribution Upon Dissolution. In the event of
any voluntary or involuntary dissolution of the Trust, the Holders of the
Preferred Securities and Common Securities at the date of the dissolution will
be entitled to receive pro rata solely out of the assets of the Trust available
for distribution to Holders of Preferred Securities and the Common Securities,
after paying or making reasonable provision to pay all claims and obligations of
the Trust in accordance with Section 3808(e) of the Business
<PAGE>   98
                                                                               4

Trust Act, an amount equal to the aggregate of the stated liquidation amount of
$1,000 per Preferred Security and Common Security plus accrued and unpaid
Distributions thereon to the date of payment (such amount being the
"Liquidation Distribution"), unless such dissolution occurs in connection with
a Tax Event or an Investment Company Event in which, in accordance with Section
4(c), Debentures in an aggregate principal amount equal to the aggregate stated
liquidation amount of such Preferred Securities and Common Securities bearing
accrued and unpaid interest in an amount equal to the accrued and unpaid
Distributions on, such Preferred Securities and Common Securities, shall be
distributed pro rata to the Holders of the Preferred Securities and Common
Securities in exchange for such Securities.

                  If, upon any such dissolution, the Liquidation Distribution
can be paid only in part because the Trust has insufficient assets available to
pay in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust on the Preferred Securities and the Common Securities
shall be paid, subject to the next paragraph, on a pro rata basis.

                  Holders of Common Securities will be entitled to receive
Liquidation Distributions upon any such dissolution pro rata with Holders of
Preferred Securities, except that, if an Event of Default has occurred and is
continuing, the Preferred Securities shall have a priority over the Common
Securities with respect to such Liquidation Distribution.

                  4. Redemption and Distribution of Debentures. The Preferred
Securities and the Common Securities may only be redeemed if Debentures having
an aggregate principal amount equal to the aggregate liquidation amount of the
Preferred Securities and the Common Securities are repaid, redeemed or
distributed as set forth below:

                  (a) Upon the repayment of the Debentures, in whole or in part,
whether at maturity or upon redemption at any time or from time to time on or
after January 15, 2007, the proceeds of such repayment will be promptly applied
to redeem pro rata Preferred Securities and Common Securities having an
aggregate liquidation amount equal to the aggregate principal amount of the
Debentures so repaid, upon not less than 30 nor more than 60 days notice, at a
redemption price equal to the following prices expressed in
<PAGE>   99
                                                                               5

percentages of the stated liquidation amount. If redeemed during the 12-month
period beginning January 15:

<TABLE>
<CAPTION>
                                                                     Redemption
Year                                                                   Price
----                                                                   -----
<S>                                                                  <C>
2007 ............................................................    103.770%
2008 ............................................................    103.393%
2009 ............................................................    103.016%
2010 ............................................................    102.639%
2011 ............................................................    102.262%
2012 ............................................................    101.885%
2013 ............................................................    101.508%
2014 ............................................................    101.131%
2015 ............................................................    100.754%
2016 ............................................................    100.377%
</TABLE>

                    and at 100% on or after January 15, 2017

plus an amount equal to accrued and unpaid Distributions thereon to the date of
redemption, payable in cash (the "Redemption Price"). The date of any such
repayment of Preferred Securities and Common Securities shall be established to
coincide with the repayment or redemption date of the Debentures.

                  (b) If fewer than all the outstanding Preferred Securities and
Common Securities are to be so redeemed, the Preferred Securities and the Common
Securities will be redeemed pro rata and, with respect to the Common Securities
to be redeemed, as described in paragraph 4 (e) (ii) below. If a partial
redemption would result in the delisting of the Preferred Securities by any
national securities exchange or other organization on which the Preferred
Securities are then listed, JPM, pursuant to the Indenture, will only redeem
Debentures in whole and the Trust will only redeem the Common Securities in
whole.

                  (c) If, at any time, a Tax Event or an Investment Company
Event (each, as hereinafter defined, and each, along with a Capital Treatment
Event, a "Special Event") shall occur and be continuing, the Regular Trustees
shall, unless the Debentures are redeemed in the limited circumstances
described below, dissolve the Trust and, after paying or making reasonable
provision to pay all claims and obligations of the Trust in accordance with
Section 3808 (e) of the Business Trust Act, cause Debentures held by the
<PAGE>   100
                                                                               6

Property Trustee having an aggregate principal amount equal to the aggregate
stated liquidation amount of, and bearing accrued and unpaid interest equal to
accrued and unpaid Distributions on, and having the same record date for
payment as, the Preferred Securities and the Common Securities, to be
distributed to the Holders of the Preferred Securities and the Common Securities
on a pro rata basis in liquidation of such Holders' interests in the Trust,
within 90 days following the occurrence of such Special Event (the "90 Day
Period"); provided, however, that in the case of the occurrence of a Tax Event,
as a condition of such dissolution and distribution, the Regular Trustees shall
have received an opinion of a nationally recognized independent tax counsel
experienced in such matters (a "No Recognition opinion"), which opinion may rely
on any then applicable published revenue rulings of the Internal Revenue
Service, to the effect that the Holders of the Preferred Securities will not
recognize any gain or loss for United States Federal income tax purposes as a
result of the dissolution of the Trust and distribution of Debentures; and
provided further that, if and as long as at the time there is available to the
Trust the opportunity to eliminate, within such 90 Day Period, the Special Event
by taking some ministerial action, such as filing a form or making an election,
or pursuing some other similar reasonable measure that has no adverse effect on
the Trust, JPM or the Holders of the Preferred Securities (a "Ministerial
Action"), the Trust will pursue such Ministerial Action in lieu of dissolution.

                  If in the case of the occurrence of a Tax Event, (i) the
Regular Trustees have received an opinion (a "Redemption Tax opinion") of
nationally recognized independent tax counsel experienced in such matters that,
as a result of a Tax Event, there is more than an insubstantial risk that JPM
would be precluded from deducting the interest on the Debentures for United
States Federal income tax purposes even if the Debentures were distributed to
the Holders of Preferred Securities and Common Securities in liquidation of such
Holders' interest in the Trust as described in this paragraph 4 (c) or (ii) the
Regular Trustees shall have been informed by such tax counsel that a No
Recognition Opinion cannot be delivered to the Trust, JPM shall have the right
at any time, subject to JPM having received prior approval of the Federal
Reserve to do so if then required under applicable capital guidelines or
policies of the Federal Reserve, upon not less than 30 nor more than 60 days
notice, to redeem the Debentures in whole
<PAGE>   101
                                                                               7

but not in part for cash at the Redemption Price within 90 days following the
occurrence of such Tax Event, and, promptly following such redemption, Preferred
Securities and Common Securities with an aggregate liquidation amount equal to
the aggregate principal amount of the Debentures so redeemed will be redeemed by
the Trust at the Redemption Price on a pro rata basis; provided, however, that,
if at the time there is available to JPM or the Regular Trustees on behalf of
the Trust the opportunity to eliminate, within such 90 Day Period, the Tax Event
by taking some Ministerial Action, JPM or the Holders of the Preferred
Securities, JPM or the Regular Trustees, on behalf of the Trust, will pursue
such measure in lieu of redemption; and provided further, that JPM shall have no
right to redeem the Debentures while the Regular Trustees, on behalf of the
Trust, are pursuing such Ministerial Action. The Common Securities will be
redeemed pro rata with the Preferred Securities, except that if an Event of
Default under the Indenture has occurred and is continuing, the Preferred
Securities will have a priority over the Common Securities with respect to
payment of the Redemption Price.

                  "Adjusted Treasury Rate" means, with respect to any prepayment
date, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such prepayment date plus (i) prior to or on
January 15, 1998, 0.9%, and (ii) after January 15, 1998, 0.5%.

                  "Capital Treatment Event" means that JPM has reasonably
determined that, as the result of the occurrence of a change in law or
regulation or a change in the interpretation or application of law or regulation
by any legislative body, court, governmental agency or regulatory authority,
there is more than an insubstantial risk that JPM will not be able to treat the
minority interest in the Trust as "Tier 1 capital" (or the equivalent) for
purposes of the capital adequacy guidelines-of the Federal Reserve, as then in
effect and applicable to JPM.

                  "Comparable Treasury Issue" means the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
remaining term through January 15 2007 of the Debentures that would be utilized,
at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt
<PAGE>   102
                                                                               8

securities of comparable maturity to the remaining term through January 15, 2007
of the Junior Subordinated Debentures.

                  "Comparable Treasury Price" means, with respect to any
prepayment date, (i) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third Business Day preceding such prepayment date, as set forth in the
most recent weekly statistical release (or any successor release) published by
the Federal Reserve and designated "H.15(519)" or (ii) if such release (or any
successor release) is not published or does not contain such prices during the
week preceding such Business Day, (A) the average of the Reference Treasury
Dealer Quotations for such prepayment date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (B) if the Debenture
Trustee obtains fewer than three such Reference Treasury Dealer Quotations, the
average of all such Quotations.

                  "Investment Company Event" means that the Regular Trustees
shall have received an opinion of nationally recognized independent counsel
experienced in practice under the Investment Company Act that, as a result of
the occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority (a "Change in 1940 Act Law"), there is more than
an insubstantial risk that the Trust is or will be considered an Investment
Company which is required to be registered under the Investment Company Act,
which Change in 1940 Act Law becomes effective on or after November 26, 1996.

                  "Quotation Agent" means J.P. Morgan Securities Inc. and its
respective successors; provided, however, that if the foregoing shall cease to
be a primary U.S. Government securities dealer in New York City (a "Primary
Treasury Dealer"), the Corporation shall substitute therefor another Primary
Treasury Dealer. "Reference Treasury Dealer" means (i) the Quotation Agent and
(ii) any other Primary Treasury Dealer selected by the Debenture Trustee after
consultation with JPM.

                  The "Redemption Price", in the case of a redemption following
a Tax Event or Capital Treatment Event prior to January 15, 2007, shall equal
for each Common
<PAGE>   103
                                                                               9

Security the Make-Whole Amount for a corresponding $1,000 principal amount of
Debentures together with accrued Distributions to but excluding the date fixed
for redemption. The "Make-Whole Amount," shall be equal to the greater of (i)
100% of the principal amount of such Debentures or (ii) as determined by a
Quotation Agent, the sum of the present values of the remaining scheduled
payments of principal, premium and interest thereon through January 15, 2007
discounted to the prepayment date on a semi-annual basis (assuming a 360-day
year consisting of 30-day months) at the Adjusted Treasury Rate.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any prepayment date, the average, as
determined by the Indenture Trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Indenture Trustee by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such prepayment date.

                  "Tax Event" means that the Regular Trustees shall have
obtained an opinion of nationally recognized independent tax counsel experienced
in such matters (a "Dissolution Tax Opinion") to the effect that, on or after
November 26, 1996 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 or taxing authority thereof or
therein, (b) any amendment to, or change in, an interpretation or application of
any such laws or regulations by any legislative body, court, governmental agency
or regulatory authority (including the enactment of any legislation and the
publication, of any judicial decision or regulatory determination), (c) any
interpretation or pronouncement that provides for a position with respect to
such laws or regulations that differs from the theretofore generally accepted
position or (d) any action taken by any governmental agency or regulatory
authority, which amendment or change is enacted, promulgated, issued or
announced or which interpretation or pronouncement is issued or announced or
which action is taken, in each case on or after November 26, 1996, there is more
than an insubstantial risk that (i) the Trust is, or will be within 90 days of
the date thereof, subject to United States Federal income tax with respect to
income accrued or received on the Debentures, ii the Trust is or will be within
90 days of the date
<PAGE>   104
                                                                              10

thereof, subject to more than a de minimis amount of taxes, duties or other
governmental charges or (iii) interest payable by JPM to the Trust on the
Debentures is not, or within 90 days of the date thereof will not be, deductible
by JPM for United States Federal income tax purposes.

                  On the date fixed for any distribution of Debentures, upon
dissolution of the Trust, (i) the Common Securities will no longer be deemed to
be outstanding and (ii) any certificates representing Common Securities will be
deemed to represent beneficial interests in the Debentures having an aggregate
principal amount equal to the stated liquidation amount of, and bearing accrued
and unpaid interest equal to accrued and unpaid Distributions on, such Common
Securities until such certificates are presented to JPM or its agent for
transfer or reissuance.

                  (d) The Trust may not redeem fewer than all the outstanding
Common Securities unless all accrued and unpaid Distributions have been paid on
all Common Securities for all semi-annual Distribution periods terminating on or
prior to the date of redemption.

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

                  (ii) In the event that fewer than all the outstanding Common
Securities are to be redeemed, the Common
<PAGE>   105
                                                                              11

Securities to be redeemed will be redeemed pro rata from each Holder of Common
Securities (subject to adjustment to eliminate fractional Common Securities).

                  (iii) If the Trust gives a Redemption/Distribution Notice in
respect of a redemption of Common Securities as provided in this paragraph 4
(which notice will be irrevocable), then immediately prior to the close of
business on the redemption date, provided that JPM has paid to the Property
Trustee in immediately available funds a sufficient amount of cash in connection
with the related redemption or maturity of the Debentures, Distributions will
cease to accrue on the Common Securities called for redemption, such Common
Securities will no longer be deemed to be outstanding and all rights of Holders
of such Common Securities so called for redemption will cease, except the right
of the Holders of such Common Securities to receive the Redemption Price, but
without interest on such Redemption Price. Neither the Trustees nor the Trust
shall be required to register or cause to be registered the transfer of any
Common Securities which have been so called for redemption. If any date fixed
for redemption of Common Securities is not a Business Day, then payment of the
Redemption Price payable on such date will be made on the next succeeding day
that is a Business Day (and without any interest or other payment in respect of
any such delay), except that, if such Business Day falls in the next calendar
year, such payment will be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on such date fixed for
redemption. If payment of the Redemption Price in respect of Common Securities
is improperly withheld or refused and not paid by the Property Trustee,
Distributions on such Common Securities will continue to accrue, from the
original redemption date to the date of payment, in which case the actual
payment date will be considered the date fixed for redemption for purposes of
calculating the Redemption Price.

                  (iv) Redemption/Distribution Notices shall be sent by the
Regular Trustees on behalf of the Trust to the Holders of the Common Securities.

                  (v) Upon the date of dissolution of the Trust and distribution
of Debentures as a result of the occurrence of a Special Event, Common Security
Certificates shall be deemed to represent beneficial interests in the Debentures
so distributed, and the Common Securities will no longer be deemed outstanding
and may be canceled by the Regular
<PAGE>   106
                                                                              12

Trustees. The Debentures so distributed shall have an aggregate principal amount
equal to the aggregate liquidation amount of the Common Securities so
distributed.

                  5. Voting Rights. (a) Except as provided under paragraph 5(b)
below and as otherwise required by law and the Declaration, the Holders of the
Common Securities will have no voting rights.

                  (b) Holders of Common Securities have the sole right under the
Declaration to increase or decrease the number of Trustees, and to appoint,
remove or replace a Trustee, any such increase, decrease, appointment, removal
or replacement to be approved by Holders of Common Securities representing a
Majority in liquidation amount of the Common Securities.

                  If any proposed amendment to the Declaration provides for, or
the Regular Trustees otherwise propose to effect, (i) any action that would
adversely affect the powers, preferences or special rights of the Securities,
whether by way of amendment to the Declaration or otherwise, or (ii) the
dissolution, winding-up or termination of the Trust, other than in connection
with the distribution of Debentures held by the Property Trustee, upon the
occurrence of a Special Event or in connection with the redemption of Common
Securities as a consequence of a redemption of Debentures, then the Holders of
outstanding Securities will be entitled to vote on such amendment or proposal
as a class and such amendment or proposal shall not be effective except with the
approval of the Holders of Securities representing 66-2/3% in liquidation amount
of such Securities; provided, however, that (A) if any amendment or proposal
referred to in clause (i) above would adversely affect only the Preferred
Securities or the Common Securities, then only the affected class will be
entitled to vote on such amendment or proposal and such amendment or proposal
shall not be effective except with the approval of 66-2/3 in liquidation amount
of such class of Securities, (B) the rights of Holders of Common Securities
under Article V of the Declaration to increase or decrease the number of, and to
appoint, replace or remove, Trustees shall not be amended without the consent of
each Holder of Common Securities, and (C) amendments to the Declaration shall be
subject to such further requirements as are set forth in Sections 12.1 and 12.2
of the Declaration.
<PAGE>   107
                                                                              13

                  In the event the consent of the Property Trustee as the holder
of the Debentures, is required under the Indenture with respect to any
amendment, modification or termination of the Indenture or the Debentures, the
Property Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination. The
Property Trustee shall vote with respect to such amendment, modification or
termination as directed by a Majority in liquidation amount of the Securities
voting together as a single class; provided that where such amendment,
modification or termination of the Indenture requires the consent or vote of (1)
holders of Debentures representing a specified percentage greater than a
majority in principal amount of the Debentures or (2) each holder of Debentures,
the Property Trustee may vote only with respect to that amendment, modification
or termination as directed by, in the case of clause (1) above, the vote of
Holders of Securities representing such specified percentage of the aggregate
liquidation amount of the Securities, or, in the case of clause (2) above, each
Holder of Securities; and provided, further, that the Property Trustee shall be
under no obligation to take any action in accordance with the directions of the
Holders of the Securities unless the Property Trustee shall have received, at
the expense of the Sponsor, an opinion of nationally recognized independent tax
counsel recognized as an expert in such matters to the effect that the Trust
will not be classified for United States Federal income tax purposes as an
association taxable as a corporation or a partnership on account of such action
and will be treated as a grantor trust for United States Federal income tax
purposes following such action.

                  Subject to Section 2.6 of the Declaration and the provisions
of this and the next succeeding paragraph, the Holders of a Majority in
liquidation amount of the Common Securities, voting separately as a class, shall
have the right to (A) on behalf of all Holders of Common Securities, waive any
past default that is waivable under the Declaration (subject to, and in
accordance with, the Declaration) and (B) direct the time, method and place of
conducting any proceeding for any remedy available to the Property Trustee, or
exercising any trust or power conferred upon the Property Trustee under the
Declaration, including the right to direct the Property Trustee, as holder of
the Debentures, to (i) direct the time, method and place of conducting any
proceeding for any remedy available to the Debenture Trustee, or exercising any
trust or power
<PAGE>   108
                                                                              14

conferred on the Debenture Trustee with respect to the Debentures, (ii) waive
any past default and its consequences that is waivable under Section 6.06 of
the Indenture, or (iii) exercise any right to rescind or annul a declaration
that the principal of all the Debentures shall be due and payable; provided that
where the taking of any action under the Indenture requires the consent or vote
of (1) holders of Debentures representing a specified percentage greater than a
majority in principal amount of the Debentures or (e) each holder of Debentures,
the Property Trustee may take such action only if directed by, in the case of
clause (1) above, the vote of Holders of Common Securities representing such
specified percentage of the aggregate liquidation amount of the Common
Securities, or, in the case of clause (2) above, each Holder of Common
Securities. Pursuant to this paragraph, the Property Trustee shall not revoke,
or take any action inconsistent with, any action previously authorized or
approved by a vote of the Holders of the Preferred Securities, and shall not
take any action in accordance with the direction of the Holders of the Common
Securities under this paragraph if the action is prejudicial to the Holders of
Preferred Securities. Other than with respect to directing the time, method and
place of conducting any proceeding for any remedy available to the Property
Trustee or the Debenture Trustee as set forth above, the Property Trustee shall
be under no obligation to take any of the foregoing actions at the direction of
the Holders of Common Securities unless the Property Trustee shall have
received, at the expense of the Sponsor, an opinion of nationally recognized
independent tax counsel recognized as expert in such matters to the effect that
the Trust will not be classified for United States Federal income tax purposes
as an association taxable as a corporation or a partnership on account of such
action and will be treated as a grantor trust for United States income tax
purposes following such action.

                  Notwithstanding any other provision of these terms,
each Holder of Common Securities will be deemed to have waived any Event of
Default with respect to the Common Securities and its consequences until all
Events of Default with respect to the Preferred Securities have been cured,
waived by the Holders of Preferred Securities as provided in the Declaration or
otherwise eliminated, and until all Events of Default with respect to the
Preferred Securities have been so cured, waived by the Holders of Preferred
Securities or otherwise eliminated, the Property Trustee will be deemed to be
acting solely on behalf of the Holders
<PAGE>   109
                                                                              15

of Preferred Securities and only the Holders of the Preferred Securities will
have the right to direct the Property Trustee in accordance with the terms of
the Declaration or of the Securities. In the event that any Event of Default
with respect to the Preferred Securities is waived by the Holders of Preferred
Securities as provided in the Declaration, the Holders of Common Securities
agree that such waiver shall also constitute the waiver of such Event of Default
with respect to the Common Securities for all purposes under the Declaration
without any further act, vote or consent of the Holders of the Common
Securities.

                  A waiver of an Indenture Event of Default by the Property
Trustee at the direction of the Holders of the Preferred Securities will
constitute a waiver of the corresponding Event of Default under the Declaration
in respect of the Securities.

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

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

                  6. Pro Rata Treatment. A reference in these terms of the
Common Securities to any payment, distribution or treatment as being "pro rata"
shall mean pro rata to each Holder of Securities according to the aggregate
liquidation amount of the Securities held by the relevant Holder in relation to
the aggregate liquidation amount of all Securities outstanding unless, in
relation to a payment, an Event of Default has occurred and is continuing, in
which case any funds available to make such payment shall be paid
<PAGE>   110
                                                                              16

first to each Holder of the Preferred Securities pro rata according to the
aggregate liquidation amount of Preferred Securities held by the relevant Holder
relative to the aggregate liquidation amount of all Preferred Securities
outstanding, and only after satisfaction of all amounts owed to the Holders of
the Preferred Securities, to each Holder of Common Securities pro rata according
to the aggregate liquidation amount of Common Securities held by the relevant
Holder relative to the aggregate liquidation amount of all Common Securities
outstanding.

                  7. Ranking. The Common Securities rank pari passu and payment
thereon will be made pro rata with the Preferred Securities except that where an
Event of Default occurs and is continuing, the rights of Holders of Common
Securities to payment in respect of Distributions and payments upon liquidation,
redemption or otherwise are subordinate to the rights of Holders of the
Preferred Securities.

                  8. Mergers, Consolidations or Amalgamations. The Trust may not
consolidate, amalgamate, merge with or into, or be replaced by, or sell,
transfer or lease all or substantially all its properties and assets to, any
Person.

                  9. Transfers, Exchanges, Method Payments. Payment of
Distributions and payments on redemption of the Common Securities will be
payable, the transfer of the Common Securities will be registrable, and Common
Securities will be exchangeable for Common Securities of other denominations of
a like aggregate liquidation amount, at the principal corporate trust office of
the Property Trustee in The City of New York; provided that payment of
Distributions may be made at the option of the Regular Trustees on behalf of the
Trust by check mailed to the address of the Persons entitled thereto and that
the payment on redemption of any Common Security will be made only upon
surrender of such Common Security to the Property Trustee. Notwithstanding the
foregoing, transfers of Common Securities are subject to conditions set forth in
Section 9.1(c) of the Declaration.

                  10. Acceptance of Indenture. Each Holder of Common Securities,
by the acceptance thereof, agrees to the provisions of the Indenture and the
Debentures, including the subordination provisions thereof.
<PAGE>   111
                                                                              17

                  11. No Preemptive Rights. The Holders of Common Securities
shall have no preemptive rights to subscribe to any additional Common Securities
or Preferred Securities.

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

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