Document:

EXHIBIT 10.3

                               GUARANTY AGREEMENT

         THIS GUARANTY AGREEMENT (this "Agreement") is made and given as of
October 27, 2003, by INTERCONTINENTAL HOTELS GROUP PLC, a corporation organized
and existing under the laws of the United Kingdom (the "Guarantor"), for the
benefit of HPT TRS IHG-1, INC., a Maryland corporation (together with its
successors and assigns, the "Tenant"), and HOSPITALITY PROPERTIES TRUST, a
Maryland real estate investment trust (together with its successors and assigns,
"Trust"; and Trust together with the Tenant, "HPT").

                              W I T N E S S E T H :

         WHEREAS, the Tenant and Intercontinental Hotels Group Resources, Inc.
(the "Manager") are, on the date hereof, entering into a Management Agreement
(as the same may be amended, modified, supplemented, or otherwise altered, the
"Management Agreement") with respect to certain hotels, all as more particularly
set forth in the Management Agreement; and

         WHEREAS, it is a condition precedent to the Tenant's entering into the
Management Agreement and the consummation of certain other transactions
contemplated by the Transaction Documents that the Guarantor enter into this
Agreement; and

         WHEREAS, the transactions contemplated by the Management Agreement and
the other Transaction Documents are of direct material benefit to the Guarantor;

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the mutual receipt and legal sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

         1. Certain Terms. Capitalized terms used and not otherwise defined in
this Agreement shall have the meanings ascribed to such terms in the Management
Agreement. The following terms as used in this Agreement shall have the meanings
set forth below:

         "Accounting Principles" shall mean generally accepted accounting
principles, as adopted in the United States of America, consistently applied or,
if the Guarantor's principal place of business is the United Kingdom, generally
accepted
<PAGE>

accounting principles, as adopted in the United Kingdom, consistently applied.

         "Collateral Agency Agreement" shall mean a written agreement, in form
and substance reasonably acceptable to HPT, among HPT, the Guarantor and the
Collateral Agent pursuant to which the Collateral Agent shall agree to hold any
cash delivered to such Collateral Agent pursuant to the terms of this Agreement
as collateral agent on behalf of HPT, as the same may be amended, restated,
supplemented or otherwise modified from time to time with the consent of the
parties thereto. Among other things, the Collateral Agency Agreement shall
provide that (a) the Collateral Agent shall look solely to the Guarantor for any
amounts owed to the Collateral Agent in connection with such agreement, (b) the
Collateral Agent shall not offset any amount owed to the Collateral Agent
against the cash delivered to it pursuant to the Collateral Agency Agreement and
this Agreement, (c) the Collateral Agent shall hold such cash as trust funds and
not commingle such cash with any assets of the Collateral Agent and (d) HPT
shall be entitled to apply any cash collateral held by the Collateral Agent to
the overdue obligations of the Guarantor hereunder in such order and at such
times as HPT may determine in its sole judgment.

         "Collateral Agent" shall mean a bank or other financial institution
reasonably acceptable to HPT having a rating of not less than BBB-/Baa3 rating
from the Rating Agencies, which bank or other financial institution is the
collateral agent under the Collateral Agency Agreement as such collateral agent
may be replaced in accordance with the terms of the Collateral Agency Agreement.

         "Coverage Date" shall mean the date which is the day after the second
(2nd) consecutive calendar year for which the Priority Coverage Ratio is equal
to or exceeds 1.3.

         "Guaranteed Obligations" shall mean the payment to Tenant of (a) all of
the Owner's First Priority as and when due under the Management Agreement
determined without respect to Gross Revenue or Operating Profits and (b) any and
all liquidated damages due to Tenant under the Management Agreement.

         "Outstanding Balance" shall mean, from time to time, the Fifty Million
Dollars ($50,000,000) less the excess of the aggregate amount paid by the
Guarantor under Section 3 hereof

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<PAGE>

over the aggregate of any amounts reimbursed to the Guarantor pursuant to the
terms of the Management Agreement.

         "Provide Collateral" or "Provided Collateral" shall mean:

         (a) delivery to HPT of (i) a Satisfactory Letter of Credit or (ii) cash
         in an amount equal to the then Outstanding Balance; or

         (b) the deposit of cash equal to the then Outstanding Balance with the
         Collateral Agent to be held by the Collateral Agent in accordance with
         the Collateral Agency Agreement provided:(i) the Collateral Agency
         Agreement has been executed and delivered by the parties thereto; (ii)
         HPT has a perfected first priority security interest in any cash
         delivered to the Collateral Agent; (iii) HPT has received favorable
         opinions of counsel, in form and substance reasonably satisfactory to
         HPT, with respect to such perfected first priority interest, the valid
         existence and good standing of the other parties to the Collateral
         Agency Agreement, the due execution and delivery thereof by such other
         parties, the enforceability of the Collateral Agency Agreement against
         such parties, and that any cash held by the Collateral Agent pursuant
         to the Collateral Agency Agreement shall not be "property of the
         estate" of Collateral Agent should any event described in Sections
         17.1(a), (b) or (c) of the Management Agreement shall occur with
         respect to the Collateral Agent; or

         (c) delivery to HPT of other collateral satisfactory to HPT in its good
         faith discretion to secure the Guaranteed Obligation;

provided, however, the Guarantor shall not be deemed to have Provided Collateral
if at any time the Outstanding Balance exceeds the sum of (i) the then remaining
balance drawable under the Satisfactory Letter of Credit or the balance of the
cash deposited by the Guarantor hereunder, plus (ii)proceeds of any Satisfactory
Letter of Credit or cash deposited hereunder, in either case, applied to the
Guaranteed Obligations.

         "Rating Agencies" shall mean, collectively, Standard's & Poor's Rating
Services or its successor and Moody's Investor Services, Inc. or its successors;
provided, however, if (i) the Rating Agencies cease operations without
successors or (ii) cease to issue credit ratings, "Rating Agencies" shall mean a

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<PAGE>

nationally recognized organization periodically issuing ratings of the financial
strength and/or credit of United States domestic and international banking
institutions reasonably agreed to by HPT and the Guarantor.

         "Reorganization" shall mean any merger, consolidation, reorganization,
change of control or any transaction pursuant to which the Guarantor shall be or
become a Subsidiary of any other Person.

         "Satisfactory Letter of Credit" shall mean a clean irrevocable letter
of credit in form and substance reasonably satisfactory to HPT in an amount
equal to the Outstanding Balance issued by a bank with a credit rating of not
less than A2/A (or, if after the date hereof the system of ratings used by the
Rating Agencies changes in a material way, their then equivalents of such credit
rating in HPT's reasonable judgment) from the Rating Agencies, having an
expiration date of not earlier than one year after the date on which it was
issued and which permits for partial draws.

         "Substitute Guarantor" shall mean a Person who assumes the Guarantor's
obligations hereunder in accordance with the terms of Section 2.7 below and is
either (a) a Person who satisfies the Rating Agencies' requirements for a single
purpose bankruptcy remote entity who has Provided Collateral or (b) a Person(s)
with (i) a tangible net worth determined in accordance with the Accounting
Principles not less than Seven Hundred Fifty Million Dollars ($750,000,000) and
(ii) unencumbered assets with a fair market value of not less than One Hundred
Million Dollars (exclusive of any note, instrument, security or claim issued by,
against or in any way dependent on the credit of, an Affiliate of Guarantor).

         2. Representations and Covenants. The Guarantor represents, warrants,
covenants and agrees that:

              2.1 Validity of Agreement. The Guarantor has duly and validly
executed and delivered this Agreement; this Agreement constitutes the legal,
valid and binding obligation of the Guarantor, enforceable against the Guarantor
in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors; and the execution,
delivery and performance of this Agreement have been duly authorized by all
requisite action of

                                      -4-
<PAGE>

the Guarantor and such execution, delivery and performance by the Guarantor will
not result in any breach of the terms, conditions or provisions of, or conflict
with or constitute a default under, or result in the creation of any lien,
charge or encumbrance upon any of the property or assets of the Guarantor
pursuant to the terms of, any indenture, mortgage, deed of trust, note, other
evidence of indebtedness, agreement or other instrument to which the Guarantor
is a party or by which the Guarantor or any property or assets of the Guarantor
is bound, or violate any provision of law applicable to the Guarantor, or any
order, writ, injunction, judgement or decree of any court applicable to the
Guarantor or any order or other public regulation of any governmental
commission, bureau or administrative agency applicable to the Guarantor.

              2.2 Payment of Expenses. The Guarantor agrees, as principal
obligor and not as guarantor only, to pay to HPT forthwith, upon demand, in
immediately available Federal funds, all costs and expenses (including court
costs and reasonable legal expenses) incurred or expended by HPT in connection
with the enforcement of this Agreement, together with interest at the Interest
Rate on amounts recoverable under this Agreement from the time such amounts
become due until payment.

              2.3 Reports. The Guarantor shall timely deliver to HPT the
Consolidated Financials required under the Management Agreement and otherwise
comply with the terms of the Management Agreement applicable to it.

              2.4 Financial Condition of Guarantor; Status of Guarantor. So long
as the Guarantor's obligations under Section 3 below are outstanding, unless the
Guarantor shall have Provided Collateral to secure its obligations hereunder:

         (a) The Guarantor shall at all times maintain a tangible net worth
determined in accordance with the Accounting Principles in an amount not less
than Five Hundred Million Dollars ($500,000,000) or if there has been a
Reorganization, or if the Guarantor is not the originally named Guarantor, Seven
Hundred Fifty Million Dollars ($750,000,000); and

         (b) The Guarantor shall not engage in any Reorganization unless
following such Reorganization it has (i) a tangible net worth determined in
accordance with the Accounting Principles in an amount not less than Seven
Hundred Fifty Million Dollars ($750,000,000) and (ii) unencumbered assets with a
fair market

                                      -5-
<PAGE>

value of not less than One Hundred Million Dollars ($100,000,000) (exclusive of
any note, instrument, security or claim issued by, against or in any way
dependent on the credit of, an Affiliate of Guarantor).

              2.5 Security. Upon the termination of the Guarantor's obligations
under Section 3 or if the excess of aggregate amount paid by the Guarantor under
Section 3 over the aggregate of any amounts reimbursed to it pursuant to the
terms of the Management Agreement equals not less than Fifty Million dollars
($50,000,000), HPT will return to the Guarantor any Satisfactory Letter of
Credit previously delivered to HPT or any unapplied cash collateral then being
held by HPT hereunder and shall direct the Collateral Agent to return any cash
being held by it under the Collateral Agency Agreement to the Guarantor. HPT
shall be entitled to draw upon any Satisfactory Letter of Credit delivered to it
(a) for the full amount thereof if at any time there is less than thirty (30)
days until the expiry date of such Satisfactory Letter of Credit; (b) for the
full amount thereof if the bank that issued such Satisfactory Letter of Credit
shall not have a credit rating of at least A/A2 (or, if after the date hereof
the system of ratings used by the Rating Agencies changes in a material way,
their then equivalents in HPT's reasonable judgment) from the Rating Agencies
and such satisfactory Letter of Credit shall not have been replaced within
thirty (30) days with a new Satisfactory Letter of Credit delivered to HPT; or
(c) to the extent and in the amounts then due and payable hereunder, if the
Guarantor shall fail to pay or perform any of its obligations under this
Guaranty in accordance with the terms hereof. HPT shall be entitled to apply any
cash collateral held by it or the Collateral Agent to the overdue obligations of
the Guarantor hereunder in such order and at such times as HPT may determine in
its sole judgment. Any cash collateral held by HPT shall not be commingled with
its other funds, and shall be invested, at the Guarantor's risk, in interest
bearing investments reasonably acceptable to the Guarantor. Any interest on such
cash collateral, and any losses in such investments, shall belong to IHG.

              2.6 Legal Existence. The Guarantor shall do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence. The Guarantor has appointed attorneys Smith, Gambrell & Russell, LLP,
having an address at 1230 Peachtree Street, N.E., Suite 3100, Promenade II,
Atlanta, Georgia 30309-3500, Attn: Managing Partner as its agent for service of
process. The Guarantor acknowledges and

                                      -6-
<PAGE>

agrees that service of process on such agent shall constitute service of process
on Guarantor with respect to any and all claims hereunder or under any other
Transaction Document.

              2.7 Substitute Guarantor. The then Guarantor (the "Departing
Guarantor") shall be released from obligations under Section 3 hereof on the
following terms and conditions:

         (a) a Substitute Guarantor shall assume pursuant to a written
instrument satisfactory to HPT all of the Guarantor's obligations hereunder; and

         (b) HPT shall receive an opinion of counsel satisfactory to HPT with
respect to, among other things, the existence and good standing of the
Substitute Guarantor and the due execution, delivery and enforceability of such
assumption.

         Upon the satisfaction of the foregoing conditions and the expiration of
all applicable preference or similar periods, HPT shall deliver a release to the
Departing Guarantor of its obligations hereunder and the Substitute Guarantor
shall be deemed the "Guarantor" hereunder. Further, if the Substitute Guarantor
has Provided Collateral or has (i) a tangible net worth determined in accordance
with the Accounting Principles of not less than Seven Hundred Fifty Million
Dollars ($750,000,000) and (ii) unencumbered assets with a fair market value of
not less than One Hundred Million Dollars (exclusive of any note, instrument,
security or claim issued by, against or in any way dependent on the credit of,
an Affiliate of Guarantor), HPT shall return to the Departing Guarantor any
letter of credit or cash delivered by the Departing Guarantor and held by HPT
hereunder and shall direct the Collateral Agent to return to the Departing
Guarantor any cash delivered by the Departing Guarantor and held by such
Collateral Agent pursuant to the terms of the Collateral Agency Agreement.

                                      -7-
<PAGE>

         3. Guarantee.

         (a) The Guarantor hereby unconditionally guarantees that the Guaranteed
Obligations which become due and payable during the term of the Management
Agreement shall be paid in full when due and payable subject to any applicable
cure periods, whether upon demand, at the stated or accelerated maturity thereof
or upon any mandatory or voluntary prepayment pursuant to any Transaction
Document, or otherwise.

         (b) This guarantee is a guarantee of payment and not of collectibility
and is absolute and in no way conditional or contingent. In case any part of the
Guaranteed Obligations shall not have been paid when due and payable or
performed at the time performance is required, subject to any applicable cure
periods, the Guarantor shall, pay or cause to be paid to HPT the amount thereof
as is then due and payable and unpaid (including interest and other charges, if
any, due thereon through the date of payment in accordance with the applicable
provisions of the Transaction Documents) or perform or cause to be performed
such obligations in accordance with the Transaction Documents. Simultaneously
with the giving of any notice of default to the Manager under the Management
Agreement, Tenant shall give a copy of such notice to the Guarantor. Tenant
shall accept any cure of such default by the Guarantor provided such cure is
completed within the applicable cure period under the Management Agreement.

         4. Unenforceability of Guaranteed Obligations, Etc. If the Manager is
for any reason under no legal obligation to discharge any of the Guaranteed
Obligations, or if any other moneys included in the Guaranteed Obligations have
become unrecoverable from the Manager by operation of law or for any other
reason, including, without limitation, the invalidity or irregularity in whole
or in part of any Guaranteed Obligation or of any Transaction Document or any
limitation on the liability of the Manager thereunder or any limitation on the
method or terms of payment thereunder which may now or hereafter be caused or
imposed in any manner whatsoever, the guarantees contained in this Agreement
shall nevertheless remain in full force and effect in accordance with the terms
set forth herein and shall be binding upon the Guarantor to the same extent as
if the Guarantor at all times had been the principal debtor on all such
Guaranteed Obligations.

                                      -8-
<PAGE>

         5. Additional Guarantees. This Agreement shall be in addition to any
other guarantee or other security for the Guaranteed Obligations and it shall
not be prejudiced or rendered unenforceable by the invalidity of any such other
guarantee or security or by any waiver, amendment, release or modification
thereof.

         6. Consents and Waivers, Etc. The Guarantor hereby acknowledges receipt
of correct and complete copies of each of the Transaction Documents and consents
to all of the terms and provisions thereof, as the same may be from time to time
hereafter amended or changed in accordance therewith, and waives, to the extent
the Guarantor lawfully may do so, (a) presentment, demand for payment, and
protest of nonpayment, of any of the Guaranteed Obligations, (b) notice of
acceptance of this Agreement and of diligence, presentment, demand and protest,
(c) notice of any default hereunder and any default, breach or nonperformance or
a Manager Event of Default under any of the Guaranteed Obligations or the
Transaction Documents, except as expressly provided in Section 3, (d) notice of
the terms, time and place of any private or public sale of collateral held as
security for the Guaranteed Obligations, (e) demand for performance or
observance of, and any enforcement of any provision of, or any pursuit or
exhaustion of rights or remedies against the Manager or any other guarantor of
the Guaranteed Obligations, under or pursuant to the Transaction Documents, or
any agreement directly or indirectly relating thereto and any requirements of
diligence or promptness on the part of the holders of the Guaranteed Obligations
in connection therewith, and (f) any and all demands and notices of every kind
and description with respect to the foregoing or which may be required to be
given by any statute or rule of law.

         7. No Impairment, Etc. The obligations, covenants, agreements and
duties of the Guarantor under this Agreement shall not be affected or impaired
by any assignment or transfer in whole or in part of any of the Guaranteed
Obligations without notice to the Guarantor, or any waiver by HPT or any holder
of any of the Guaranteed Obligations or by the holders of all of the Guaranteed
Obligations of the performance or observance by the Manager or any other
guarantor of any of the agreements, covenants, terms or conditions contained in
the Guaranteed Obligations or the Transaction Documents or

                                      -9-
<PAGE>

any indulgence in or the extension of the time for payment by the Manager or any
other guarantor of any amounts payable under or in connection with the
Guaranteed Obligations or the Transaction Documents or any other instrument or
agreement relating to the Guaranteed Obligations or of the time for performance
by the Manager or any other guarantor of any other obligations under or arising
out of any of the foregoing or the extension or renewal thereof, or the
modification or amendment made with the consent of the Guarantor of any duty,
agreement or obligation of the Manager or any other guarantor set forth in any
of the foregoing, or the voluntary or involuntary sale or other disposition of
all or substantially all the assets of the Manager or any other guarantor or
insolvency, bankruptcy, or other similar proceedings affecting the Manager or
any other guarantor or any assets of the Manager or any such other guarantor, or
the release or discharge of the Manager or any such other guarantor from the
performance or observance of any agreement, covenant, term or condition
contained in any of the foregoing without the consent of the holders of the
Guaranteed Obligations by operation of law.

         8. Reimbursement, Subrogation, Etc. The Guarantor hereby covenants and
agrees that the Guarantor will not enforce or otherwise exercise any rights of
reimbursement, subrogation, contribution or other similar rights against the
Manager or any other person with respect to the Guaranteed Obligations prior to
the irrevocable payment in full of all amounts then due and owing but unpaid
under the Management Agreement, and until the Guaranteed Obligations have been
satisfied in full, the Guarantor shall not have any right of subrogation, and
the Guarantor waives any defense it may have based upon any election of remedies
by HPT which destroys the Guarantor's subrogation rights or the Guarantor's
rights to proceed against the Manager for reimbursement, including, without
limitation, any loss of rights the Guarantor may suffer by reason of any rights,
powers or remedies of the Manager in connection with any anti-deficiency laws or
any other laws limiting, qualifying or discharging the indebtedness to HPT.
Until all obligations of the Manager pursuant to the Transaction Documents shall
have been irrevocably paid and satisfied in full, the Guarantor waives any right
to enforce any remedy which HPT now has or may in the future have against the
Manager, any other guarantor or any other person and any benefit of, or any
right to participate in, any security whatsoever now or in the future held by
HPT. Nothing contained in this Section 8 shall limit any of Guarantor's rights
under the Management Agreement.

         9. Defeasance; Guaranty Limitations. The Guarantor's obligations under
Section 3 shall terminate upon the first to occur of (a) the date on which the
Guaranteed Obligations have

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<PAGE>

been paid and performed in full and all other obligations of the Guarantor to
HPT under this Agreement have been irrevocably satisfied in full and (b) the
Coverage Date; provided, however, if at any time, all or any part of any payment
applied on account of the Guaranteed Obligations is or must be rescinded or
returned for any reason whatsoever (including, without limitation, the
insolvency, bankruptcy or reorganization of the Manager), this Agreement, to the
extent such payment is or must be rescinded or returned, shall be deemed to have
continued in existence notwithstanding any such termination. Notwithstanding
anything contained in this Agreement to the contrary, in no event shall the
Guarantor's liability under Section 3 hereof exceed the sum of Fifty Million
Dollars ($50,000,000) less (ii) the aggregate amount paid by the Guarantor under
Section 3 in excess of the aggregate of any amounts reimbursed to it pursuant to
the terms of the Management Agreement.

         10. Notices. (a) Any and all notices, demands, consents, approvals,
offers, elections and other communications required or permitted under this
Agreement shall be deemed adequately given if in writing and the same shall be
delivered either by hand, by telecopier with written acknowledgment of receipt
(provided a copy thereof is sent by Federal Express or similar expedited
commercial carrier for delivery on the next business day), or Federal Express or
similar expedited commercial carrier, addressed to the recipient of the notice,
postpaid and registered or certified with return receipt requested (if by mail),
or with all freight charges prepaid (if by Federal Express or similar carrier).

         (b) All notices required or permitted to be sent hereunder shall be
deemed to have been given for all purposes of this Agreement upon the date of
acknowledged receipt, in the case of a notice by telecopier, and, in all other
cases, upon the date of receipt or refusal, except that whenever under this
Agreement a notice is either received on a day which is not a Business Day or is
required to be delivered on or before a specific day which is not a Business
Day, the day of receipt or required delivery shall automatically be extended to
the next Business Day.

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<PAGE>

         (c) All such notices shall be addressed,

         if to HPT to:

                  c/o Hospitality Properties Trust
                  400 Centre Street
                  Newton, Massachusetts  02458
                  Attn:  Mr. John G. Murray
                  [Telecopier No. (617) 969-5730]

         with a copy to:

                  Sullivan & Worcester LLP
                  One Post Office Square
                  Boston, Massachusetts  02109
                  Attn:  Warren M. Heilbronner, Esq.
                  [Telecopier No. (617) 338-2880]

         if to the Guarantor to:

                  International Hotels Group PLC
                  67 Alma Road
                  Windsor
                  Berkshire SL4 3HD
                  ENGLAND
                  Attn: Company Secretary
                  Telecopier No. +44 1753 410101

           with a copy to:

                  International Hotels Group, Inc.
                  3 Ravinia Drive
                  Suite 100
                  Atlanta, Georgia 30346
                  Attn:  Vice President, Asset Management
                  [Telecopier No. 770-604-5340]

         (d) By notice given as herein provided, the parties hereto and their
respective successors and assigns shall have the right from time to time and at
any time during the term of this Agreement to change their respective addresses
effective upon receipt by the other parties of such notice and each shall have
the right to specify as its address any other address within the United States
of America.

         11. Successors and Assigns. Whenever in this Agreement, any of the
parties hereto is referred to, such reference shall

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<PAGE>

be deemed to include the successors and assigns of such party, including without
limitation the holders, from time to time, of the Guaranteed Obligations; and
all representations, warranties, covenants and agreements by or on behalf of the
Guarantor which are contained in this Agreement shall inure to the benefit of
HPT's successors and assigns, including, without limitation, such holders,
whether so expressed or not.

         12. Applicable Law. Except as to matters regarding the internal affairs
of HPT and issues of or limitations on any personal liability of the
shareholders and trustees of HPT for obligations of HPT, as to which the laws of
the State of Maryland shall govern, this Agreement and any other instruments
executed and delivered to evidence, complete or perfect the transactions
contemplated hereby shall be interpreted, construed, applied and enforced in
accordance with the laws of New York applicable to contracts between residents
of New York which are to be performed entirely within New York, regardless of
(i) where any such instrument is executed or delivered; or (ii) where any
payment or other performance required by any such instrument is made or required
to be made; or (iii) where any breach of any provision of any such instrument
occurs, or any cause of action otherwise accrues; or (iv) where any action or
other proceeding is instituted or pending; or (v) the nationality, citizenship,
domicile, principal place of business, or jurisdiction of organization or
domestication of any party; or (vi) whether the laws of the forum jurisdiction
otherwise would apply the laws of a jurisdiction other than Massachusetts; or
(vii) any combination of the foregoing.

         All actions and proceedings arising out of or in any way relating to
this Agreement shall be brought, heard, and determined exclusively in an
otherwise appropriate federal or state court located within the State of New
York. Guarantor hereby (i) submits to the exclusive jurisdiction of any New York
federal or state court of otherwise competent jurisdiction for the purpose of
any action or proceeding arising out of or relating to this Agreement and (ii)
voluntarily and irrevocably waives, and agrees not to assert by way of motion,
defense, or otherwise in any such action or proceeding, any claim or defense
that it is not personally subject to the jurisdiction of such a court, that such
a court lacks personal jurisdiction over Guarantor or the matter, that the
action or proceeding has been brought in an inconvenient or improper forum, that
the venue of the action or proceeding is improper, or that this Agreement may
not be enforced in or by such a court. To the maximum extent

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<PAGE>

permitted by applicable law, Guarantor consents to service of process by
registered mail, return receipt requested, or by any other manner provided by
law.

         To the maximum extent permitted by applicable law, each of the parties
hereto waives its rights to trial by jury with respect to this Agreement or any
matter arising in connection herewith.

         13. Modification of Agreement. No modification or waiver of any
provision of this Agreement, nor any consent to any departure by the Guarantor
therefrom, shall in any event be effective unless the same shall be in writing
and signed by HPT, and such modification, waiver or consent shall be effective
only in the specific instances and for the purpose for which given. No notice to
or demand on the Guarantor in any case shall entitle the Guarantor to any other
or further notice or demand in the same, similar or other circumstances.

         14. Waiver of Rights by HPT. Neither any failure nor any delay on HPT's
part in exercising any right, power or privilege under this Agreement shall
operate as a waiver thereof, nor shall a single or partial exercise thereof
preclude any other or further exercise, or the exercise of any other right,
power or privilege.

         15. Severability. In case any one or more of the provisions contained
in this Agreement should be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby, but this Agreement
shall be reformed and construed and enforced to the maximum extent permitted by
applicable law.

         16. Entire Contract. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and shall
supersede and take the place of any other instruments purporting to be an
agreement of the parties hereto relating to the subject matter hereof.

         17. Headings; Counterparts. Headings in this Agreement are for purposes
of reference only and shall not limit or otherwise affect the meaning hereof.
This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one instrument,
and in pleading or proving any provision of this

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<PAGE>

Agreement, it shall not be necessary to produce more than one of such
counterparts.

         18. Remedies Cumulative. No remedy herein conferred upon HPT is
intended to be exclusive of any other remedy, and subject to the limitations set
forth in Section 9 above, each and every remedy shall be cumulative and shall be
in addition to every other remedy given hereunder or now or hereafter existing
at law or in equity or by statute or otherwise.

         19. Nonliability of Trustees. THE DECLARATION OF TRUST ESTABLISHING
TRUST, A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS THERETO (THE
"DECLARATION"), IS DULY FILED WITH THE DEPARTMENT OF ASSESSMENTS AND TAXATION OF
THE STATE OF MARYLAND, PROVIDES THAT, AND THE GUARANTOR HEREBY AGREES THAT, THE
NAME "HOSPITALITY PROPERTIES TRUST" REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO
TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF TRUST SHALL BE HELD TO ANY
PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM
AGAINST, TRUST. ALL PERSONS DEALING WITH TRUST, IN ANY WAY, SHALL LOOK ONLY TO
THE ASSETS OF TRUST FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY
OBLIGATION.

         20. Effective Date. This Agreement shall be of no force or effect
unless and until the Effective Date occurs.

                                      -15-
<PAGE>

         WITNESS the execution hereof under seal as of the date above first
written.

                                 INTERCONTINENTAL HOTELS GROUP PLC

                                 By: /s/ Stevan D. Porter
                                    Its: Director

                                 By: /s/ Richard Solomons
                                    Its: Director

ACKNOWLEDGED AND AGREED:

HPT TRS IHG-1, INC.

By: /s/ John G. Murray
   Its: Vice President

HOSPITALITY PROPERTIES TRUST

By: /s/ John G. Murray
   Its: President

                                      -16-EXHIBIT 10.1

                        AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                    Weststar Financial Services Corporation I

                          Dated as of October 10, 2003

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                     Page
                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

<S>               <C>                                                                                  <C>
SECTION 1.1.      Definitions...........................................................................1

                                   ARTICLE II
                                  ORGANIZATION

SECTION 2.1.      Name..................................................................................8

SECTION 2.2.      Office................................................................................8

SECTION 2.3.      Purpose...............................................................................8

SECTION 2.4.      Authority.............................................................................8

SECTION 2.5.      Title to Property of the Trust........................................................9

SECTION 2.6.      Powers and Duties of the Trustees and the Administrators..............................9

SECTION 2.7.      Prohibition of Actions by the Trust and the Trustees.................................14

SECTION 2.8.      Powers and Duties of the Institutional Trustee.......................................14

SECTION 2.9.      Certain Duties and Responsibilities of the Trustees and the Administrators...........16

SECTION 2.10.     Certain Rights of Institutional Trustee..............................................18

SECTION 2.11.     Delaware Trustee.....................................................................20

SECTION 2.12.     Execution of Documents...............................................................20

SECTION 2.13.     Not Responsible for Recitals or Issuance of Securities...............................20

SECTION 2.14.     Duration of Trust....................................................................21

SECTION 2.15.     Mergers..............................................................................21

                                   ARTICLE III
                                     SPONSOR

SECTION 3.1.      Sponsor's Purchase of Common Securities..............................................23

SECTION 3.2.      Responsibilities of the Sponsor......................................................23

                                   ARTICLE IV
                           TRUSTEES AND ADMINISTRATORS

SECTION 4.1.      Number of Trustees...................................................................23

SECTION 4.2.      Delaware Trustee.....................................................................23

SECTION 4.3.      Institutional Trustee; Eligibility...................................................24

SECTION 4.4.      Certain Qualifications of the Delaware Trustee Generally.............................24

SECTION 4.5.      Administrators.......................................................................24

SECTION 4.6.      Initial Delaware Trustee.............................................................25
</TABLE>

                                       -i-
<PAGE>
<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
                                   (continued)
                                                                                                     Page

<S>               <C>                                                                                    <C>
SECTION 4.7.       Appointment, Removal and Resignation of the Trustees and the Administrators.........25

SECTION 4.8.       Vacancies Among Trustees............................................................27

SECTION 4.9.       Effect of Vacancies.................................................................27

SECTION 4.10.      Meetings of the Trustees and the Administrators.....................................27

SECTION 4.11.      Delegation of Power.................................................................27

SECTION 4.12.      Merger, Conversion, Consolidation or Succession to Business.........................28

                                    ARTICLE V
                                  DISTRIBUTIONS

SECTION 5.1.       Distributions.......................................................................28

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

SECTION 6.1.       General Provisions Regarding Securities.............................................28

SECTION 6.2.       Paying Agent, Transfer Agent, Calculation Agent and Registrar.......................29

SECTION 6.3.       Form and Dating.....................................................................30

SECTION 6.4.       Mutilated, Destroyed, Lost or Stolen Certificates...................................30

SECTION 6.5.       Temporary Securities................................................................31

SECTION 6.6.       Cancellation........................................................................31

SECTION 6.7.       Rights of Holders; Waivers of Past Defaults.........................................31

                                   ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

SECTION 7.1.       Dissolution and Termination of Trust................................................33

                                  ARTICLE VIII
                              TRANSFER OF INTERESTS

SECTION 8.1.       General.............................................................................34

SECTION 8.2.       Transfer Procedures and Restrictions................................................35

SECTION 8.3.       Deemed Security Holders.............................................................37

                                   ARTICLE IX
      LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 9.1.      Liability............................................................................37

SECTION 9.2.      Exculpation..........................................................................38

SECTION 9.3.      Fiduciary Duty.......................................................................38

SECTION 9.4.      Indemnification......................................................................39
</TABLE>

                                       ii
<PAGE>
<TABLE>
<CAPTION>

                                TABLE OF CONTENTS
                                   (continued)
                                                                                                     Page

<S>               <C>                                                                                 <C>
SECTION 9.5.      Outside Businesses...................................................................42

SECTION 9.6.      Compensation; Fee....................................................................42

                                    ARTICLE X
                                   ACCOUNTING

SECTION 10.1.     Fiscal Year..........................................................................43

SECTION 10.2.     Certain Accounting Matters...........................................................43

SECTION 10.3.     Banking..............................................................................43

SECTION 10.4.     Withholding..........................................................................44

                                   ARTICLE XI
                             AMENDMENTS AND MEETINGS

SECTION 11.1.     Amendments...........................................................................44

SECTION 11.2.     Meetings of the Holders of the Securities; Action by Written Consent.................46

                                   ARTICLE XII
          REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

SECTION 12.1.     Representations and Warranties of Institutional Trustee..............................47

SECTION 12.2.     Representations and Warranties of Delaware Trustee...................................48

                                  ARTICLE XIII
                                  MISCELLANEOUS

SECTION 13.1.     Notices..............................................................................49

SECTION 13.2.     Governing Law........................................................................50

SECTION 13.3.     Submission to Jurisdiction...........................................................50

SECTION 13.4.     Intention of the Parties.............................................................52

SECTION 13.5.     Headings.............................................................................52

SECTION 13.6.     Successors and Assigns...............................................................52

SECTION 13.7.     Partial Enforceability...............................................................52

SECTION 13.8.     Counterparts.........................................................................52

</TABLE>

                                       iii
<PAGE>

ANNEXES AND EXHIBITS

ANNEX I           Terms of TP Securities and Common Securities

EXHIBIT A-1       Form of Capital Security Certificate
EXHIBIT A-2       Form of Common Security Certificate
EXHIBIT B         Form of Transferee Certificate to be Executed by Transferees
                  Other than QIBs
EXHIBIT C         Form of Transferor Certificate to be Executed for QIBs

                                      -iv-
<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                    Weststar Financial Services Corporation I

                                October 10, 2003

     AMENDED AND RESTATED DECLARATION OF TRUST (this  "Declaration"),  dated and
effective as of October 10,  2003,  by the  Trustees  (as defined  herein),  the
Administrators  (as defined  herein),  the  Sponsor (as defined  herein) and the
holders from time to time of undivided beneficial interests in the assets of the
Trust (as defined herein) to be issued pursuant to this Declaration.

     WHEREAS,  certain  of the  Trustees,  the  Administrators  and the  Sponsor
established Weststar Financial Services Corporation I (the "Trust"), a statutory
trust  under  the  Statutory  Trust  Act  (as  defined  herein),  pursuant  to a
Declaration of Trust, dated as of October 8, 2003, (the "Original Declaration"),
and a  Certificate  of Trust filed with the  Secretary  of State of the State of
Delaware on October 8, 2003, for the sole purpose of issuing and selling certain
securities  representing  undivided  beneficial  interests  in the assets of the
Trust and investing the proceeds thereof in certain  debentures of the Debenture
Issuer (as defined herein) in connection with the Bear, Stearns Securities Corp.
transaction;

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

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

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

                                   ARTICLE I
                         INTERPRETATION AND DEFINITIONS

     SECTION 1.1. Definitions. Unless the context otherwise requires:
                  -----------

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

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

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

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

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

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

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

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

     "Administrators"  means each of Randall  C. Hall and G.  Gordon  Greenwood,
solely  in such  Person's  capacity  as  Administrator  of the  Trust  continued
hereunder and not in such Person's individual capacity,  or such Administrator's
successor in interest in such  capacity,  or any  successor  appointed as herein
provided.

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

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

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

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

          (b) such  Person  commences  a  voluntary  case  under any  applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, consents
to the entry of an order for relief in an  involuntary  case under any such law,
or  consents  to  the  appointment  of  or  taking  possession  by  a  receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of such Person of any  substantial  part of its  property,  or makes any general
assignment for the benefit of creditors,  or fails generally to pay its debts as
they become due.

                                      -2-
<PAGE>

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

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

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

     "Capital Security Certificate" means a definitive Certificate registered in
the name of the Holder representing a Capital Security substantially in the form
of Exhibit A 1.

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

     "Certificate" means any certificate evidencing Securities.

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

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

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

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

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

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

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

     "Corporate Trust Office" means the office of the  Institutional  Trustee at
which the corporate  trust business of the  Institutional  Trustee shall, at any
particular time, be principally administered, which office shall at all times be
located in the United States and at the date of execution of this Declaration is
located  at 919  Market  Street  Suite  700  Wilmington,  DE  19801,  Attention:
Corporate Trust Division.

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

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

                                      -3-
<PAGE>

     "Debenture Issuer" means Weststar Financial  Services  Corporation,  a bank
holding company incorporated in North Carolina, in its capacity as issuer of the
Debentures under the Indenture.

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

     "Debentures"  means the Junior  Subordinated Debt Securities due October 7,
2033 to be issued by the Debenture Issuer under the Indenture.

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

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

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

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

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

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

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

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

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

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

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

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

                                      -4-
<PAGE>

     "Guarantee" means the Guarantee Agreement, dated as of October 10, 2003, of
the Sponsor in respect of the Capital Securities.

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

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

     "Indenture"  means the Indenture,  dated as of October 10, 2003,  among the
Debenture  Issuer and the  Debenture  Trustee,  and any  indenture  supplemental
thereto pursuant to which the Debentures are to be issued.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -5-
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -6-
<PAGE>

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

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

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

     "Restricted Securities Legend" has the meaning set forth in Section 8.2(c).
"Rule 144A" means Rule 144A under the Securities Act.

     "Rule 3a-5" means Rule 3a-5 under the  Investment  Company Act. "Rule 3a-7"
means Rule 3a-7 under the Investment Company Act.  "Securities" means the Common
Securities and the Capital Securities.

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

     "Sponsor" means Weststar  Financial  Services  Corporation,  a bank holding
company that is a U.S. Person  incorporated in North Carolina,  or any successor
entity in a merger,  consolidation or amalgamation that is a U.S. Person, in its
capacity as sponsor of the Trust.

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

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

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

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

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

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

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

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

                                      -7-
<PAGE>

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

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

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

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

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

                                   ARTICLE II
                                  ORGANIZATION

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

     SECTION  2.2.  Office.  The address of the  principal  office of the Trust,
                    ------
which shall be in a state of the United  States or the District of Columbia,  is
79 Woodfin Place,  Asheville,  NC 28801. On ten Business Days' written notice to
the Institutional Trustee and the Holders of the Securities,  the Administrators
may designate another principal office,  which shall be in a state of the United
States or the District of Columbia.

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

                                      -8-
<PAGE>

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

     SECTION 2.5. Title to Property of the Trust.  Except as provided in Section
                  ------------------------------
2.6(g) and Section 2.8 with respect to the Debentures  and the Property  Account
or as otherwise  provided in this Declaration,  legal title to all assets of the
Trust shall be vested in the Trust.  The  Holders  shall not have legal title to
any part of the assets of the  Trust,  but shall  have an  undivided  beneficial
interest in the assets of the Trust.

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

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

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

               (A) the issuance and sale of the Securities;

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

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

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

                                      -9-
<PAGE>

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

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

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

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

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

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

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

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

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

                                      -10-
<PAGE>

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

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

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

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

               (A) the establishment of the Property Account;

               (B) the receipt of the Debentures;

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

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

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

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

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

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

                                      -11-

<PAGE>

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

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

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

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

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

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

                                      -12-

<PAGE>

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

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

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

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

                                      -13-
<PAGE>

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

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

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

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

     SECTION 2.7. Prohibition of Actions by the Trust and the Trustees.
                  ----------------------------------------------------

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

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

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

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

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

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

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

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

          SECTION 2.8. Powers and Duties of the Institutional Trustee.
                       -----------------------------------------------

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

                                      -14-
<PAGE>

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

          (c) The Institutional Trustee shall:

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

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

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

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

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

                                      -15-
<PAGE>

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

          (i) the Trust has been  completely  liquidated and the proceeds of the
     liquidation  distributed to the Holders of the  Securities  pursuant to the
     terms of the Securities and this Declaration (including Annex I); or

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

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

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

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

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

          (b)  The  duties  and   responsibilities   of  the  Trustees  and  the
Administrators  shall be as provided by this Declaration and, in the case of the
Institutional   Trustee,  by  the  Trust  Indenture  Act.   Notwithstanding  the
foregoing,  no  provision  of this  Declaration  shall  require  any  Trustee or
Administrator  to expend or risk its own funds or otherwise  incur any financial
liability in the performance of any of its duties hereunder,  or in the exercise
of any of its  rights  or  powers,  if it  shall  have  reasonable  grounds  for
believing that repayment of such funds or adequate indemnity  satisfactory to it
against such risk or liability is not  reasonably  assured to it. Whether or not
therein expressly so provided,  every provision of this Declaration  relating to
the  conduct or  affecting  the  liability  of or  affording  protection  to the
Trustees  or the  Administrators  shall be  subject  to the  provisions  of this
Article.  Nothing in this  Declaration  shall be  construed to release a Trustee
from liability for its own negligent  action,  its own negligent failure to act,
or its own willful misconduct. Nothing in this Declaration shall be construed to
release an Administrator  from liability for its own gross negligent action, its
own gross negligent failure to act, or its

                                      -16-
<PAGE>

own willful misconduct. To the extent that, at law or in equity, a Trustee or an
Administrator  has  duties  and  liabilities  relating  to the  Trust  or to the
Holders,  such Trustee or  Administrator  shall not be liable to the Trust or to
any Holder for such  Trustee's  or  Administrator's  good faith  reliance on the
provisions  of this  Declaration.  The  provisions of this  Declaration,  to the
extent that they restrict the duties and  liabilities of the  Administrators  or
the Trustees  otherwise  existing at law or in equity, are agreed by the Sponsor
and  the  Holders  to  replace  such  other  duties  and   liabilities   of  the
Administrators or the Trustees.

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

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

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

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

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

          (iv) the Institutional Trustee shall not be liable for any interest on
     any money  received by it except as it may otherwise  agree in writing with

                                      -17-
<PAGE>

     the  Sponsor;  and  money  held by the  Institutional  Trustee  need not be
     segregated  from other funds held by it except in relation to the  Property
     Account  maintained  by  the  Institutional  Trustee  pursuant  to  Section
     2.8(c)(i) and except to the extent otherwise required by law; and

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

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

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

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

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

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

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

                                      -18-
<PAGE>

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

          (g) the Institutional Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this  Declaration  at the request or
direction  of any of the  Holders  pursuant  to this  Declaration,  unless  such
Holders shall have offered to the  Institutional  Trustee  security or indemnity
reasonably  satisfactory to it against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction;  provided,
                                                                      ---------
that nothing  contained in this  Section  2.10(g)  shall be taken to relieve the
Institutional  Trustee, upon the occurrence of an Event of Default (of which the
Institutional  Trustee has  knowledge (as provided in Section  2.10(m)  hereof))
that has not been cured or waived,  of its obligation to exercise the rights and
powers vested in it by this Declaration;

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

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

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

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

          (l) when the Institutional Trustee incurs expenses or renders services
in connection with a Bankruptcy Event, such expenses (including the fees and

                                      -19-
<PAGE>

expenses of its counsel) and the  compensation for such services are intended to
constitute  expenses of administration  under any bankruptcy law or law relating
to creditors rights generally;

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

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

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

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

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

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

                                      -20-
<PAGE>

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

     SECTION 2.15. Mergers. (a) The Trust may not consolidate, amalgamate, merge
                   -------
with or into, or be replaced by, or convey, transfer or lease its properties and
assets  substantially as an entirety to any corporation or other Person,  except
as described in this Section 2.15 and except with respect to the distribution of
Debentures  to Holders of  Securities  pursuant  to  Section  7.1(a)(iv)  of the
Declaration or Section 4 of Annex I.

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

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

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

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

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

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

     (v) such  merger,  consolidation,  amalgamation,  replacement,  conveyance,
transfer  or  lease  does not  adversely  affect  the  rights,  preferences  and

                                      -21-
<PAGE>

privileges of the Holders of the Securities (including any Successor Securities)
in any  material  respect  (other  than with  respect  to any  dilution  of such
Holders'  interests  in  the  Successor  Entity  as a  result  of  such  merger,
consolidation, amalgamation or replacement);

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

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

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

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

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

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

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

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

                                      -22-
<PAGE>

                                  ARTICLE III
                                     SPONSOR

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

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

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

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

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

                                   ARTICLE IV
                           TRUSTEES AND ADMINISTRATORS

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

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

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

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

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

                                      -23-
<PAGE>

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

          SECTION 4.3. Institutional Trustee; Eligibility.
                       ----------------------------------
          (a)  There  shall  at all  times be one  Trustee  which  shall  act as
Institutional Trustee which shall:

               (i) not be an Affiliate of the Sponsor;

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

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

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

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

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

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

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

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

                                      -24-
<PAGE>

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

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

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

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

          (c) Unless an Event of Default shall have occurred and be  continuing,
any Trustee may be removed at any time by an act of the Holders of a Majority in
liquidation amount of the Common Securities. If any Trustee shall be so removed,
the  Holders of the Common  Securities,  by act of the  Holders of a Majority in
liquidation  amount of the Common Securities  delivered to the Relevant Trustee,
shall promptly appoint a successor Relevant Trustee,  and such successor Trustee
shall comply with the applicable  requirements  of this Section 4.7. If an Event
of Default shall have occurred and be continuing,  the Institutional  Trustee or
the Delaware Trustee,  or both of them, may be removed by the act of the Holders
of a Majority in liquidation amount of the Capital Securities,  delivered to the
Relevant Trustee (in its individual capacity and on behalf of the Trust). If any
Trustee shall be so removed,  the Holders of Capital  Securities,  by act of the
Holders of a Majority  in  liquidation  amount of the  Capital  Securities  then
outstanding  delivered  to  the  Relevant  Trustee,  shall  promptly  appoint  a
successor Relevant Trustee or Trustees,  and such successor Trustee shall comply
with the applicable  requirements of this Section 4.7. If no successor  Relevant
Trustee shall have been so appointed by the Holders of a Majority in liquidation
amount of the Capital Securities and accepted appointment in the manner required
by this Section 4.7 within 30 days after  delivery of an  instrument of removal,
the Relevant  Trustee or any Holder who has been a Holder of the  Securities for
at least six months may, on behalf of himself and all others similarly situated,
petition  any  federal,  state  or  District  of  Columbia  court  of  competent
jurisdiction for the appointment of a successor Relevant Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint
a successor Relevant Trustee or Trustees.

                                      -25-
<PAGE>

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

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

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

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

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

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

                                      -26-
<PAGE>

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

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

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

     SECTION 4.11. Delegation of Power. (a) Any Trustee or any Administrator, as
                   -------------------
the case may be, may,  by power of  attorney  consistent  with  applicable  law,
delegate to any other  natural  person over the age of 21 that is a U.S.  Person
his or her power for the purpose of  executing  any  documents,  instruments  or
other writings contemplated in Section 2.6.

          (b) The  Trustees  shall have power to  delegate  from time to time to
such of their number or to any officer of the Trust that is a U.S.  Person,  the
doing of such things and the  execution of such  instruments  or other  writings
either in the name of the Trust or the names of the Trustees or otherwise as the

                                      -27-
<PAGE>

Trustees may deem expedient,  to the extent such delegation is not prohibited by
applicable law or contrary to the provisions of the Trust, as set forth herein.

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

                                   ARTICLE V
                                  DISTRIBUTIONS

     SECTION  5.1.   Distributions.   Holders  shall  receive  Distributions  in
                     -------------
accordance  with the  applicable  terms  of the  relevant  Holder's  Securities.
Distributions  shall be made on the Capital Securities and the Common Securities
in accordance with the preferences set forth in their  respective  terms. If and
to the extent that the Debenture  Issuer makes a payment of interest  (including
any Additional Interest or Deferred Interest) and/or principal on the Debentures
held by the  Institutional  Trustee  (the  amount  of any such  payment  being a
"Payment  Amount"),  the  Institutional  Trustee  shall and is directed,  to the
extent funds are available in the Property  Account for that purpose,  to make a
distribution  (a  "Distribution")  of the  Payment  Amount to  Holders.  For the
avoidance of doubt,  funds in the Property  Account shall not be  distributed to
Holders  to the  extent  of any  taxes  payable  by the  Trust,  in the  case of
withholding  taxes,  as  determined by the  Institutional  Trustee or any Paying
Agent and, in the case of taxes other than  withholding tax taxes, as determined
by the Administrators in a written notice to the Institutional Trustee.

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

     SECTION 6.1. General Provisions Regarding Securities.
                  ----------------------------------------

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

                                      -28-
<PAGE>

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

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

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

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

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

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

                                      -29-
<PAGE>

to  this   Declaration.   The   Administrators   hereby  initially  appoint  the
Institutional  Trustee to act as Paying Agent,  Transfer Agent and Registrar for
the Capital  Securities and the Common Securities at its Corporate Trust Office.
The Institutional  Trustee or any of its Affiliates in the United States may act
as Paying Agent, Transfer Agent or Registrar.

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

     SECTION 6.3. Form and Dating.
                  ---------------

          (a) The Capital Securities and the Institutional Trustee's certificate
of authentication thereon shall be substantially in the form of Exhibit A-1, and
the Common Securities shall be substantially in the form of Exhibit A-2, each of
which is hereby  incorporated in and expressly made a part of this  Declaration.
Certificates may be typed, printed,  lithographed or engraved or may be produced
in any other  manner  as is  reasonably  acceptable  to the  Administrators,  as
conclusively  evidenced by their  execution  thereof.  The  Securities  may have
letters, numbers,  notations or other marks of identification or designation and
such legends or endorsements required by law, stock exchange rule, agreements to
which the Trust is subject, if any, or usage (provided,  that any such notation,
legend or endorsement is in a form acceptable to the Sponsor).  The Trust at the
direction of the Sponsor  shall furnish any such legend not contained in Exhibit
A-1 to the  Institutional  Trustee in writing.  Each Capital  Security  shall be
dated the date of its authentication. The terms and provisions of the Securities
set forth in Annex I and the forms of  Securities  set forth in Exhibits A-1 and
A-2 are part of the terms of this Declaration and to the extent applicable,  the
Institutional Trustee, the Delaware Trustee, the Administrators and the Sponsor,
by their  execution and delivery of this  Declaration,  expressly  agree to such
terms and provisions and to be bound thereby.  Capital Securities will be issued
only in blocks having a stated liquidation amount of not less than $100,000.

          (b) The  Capital  Securities  are being  offered and sold by the Trust
pursuant to the Purchase Agreement in definitive form, registered in the name of
the Holder thereof, without coupons and with the Restricted Securities Legend.

     SECTION 6.4. Mutilated, Destroyed, Lost or Stolen Certificates. If:
                  -------------------------------------------------

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

          (b) there shall be delivered to the Registrar,  the Administrators and
the Institutional  Trustee such security or indemnity as may be required by them
to keep  each of them  harmless;  then,  in the  absence  of  notice  that  such
Certificate shall have been acquired by a bona fide purchaser,  an Administrator
on behalf  of the Trust  shall  execute  (and in the case of a Capital  Security
Certificate,  the  Institutional  Trustee shall  authenticate)  and deliver,  in
exchange  for or in lieu  of any  such  mutilated,  destroyed,  lost  or  stolen
Certificate,  a new  Certificate of like  denomination.  In connection  with the
issuance of any new  Certificate  under this Section  6.4, the  Registrar or the

                                      -30-
<PAGE>

Administrators  may require the payment of a sum  sufficient to cover any tax or
other  governmental  charge  that may be imposed in  connection  therewith.  Any
duplicate   Certificate   issued  pursuant  to  this  Section  shall  constitute
conclusive evidence of an ownership interest in the relevant  Securities,  as if
originally  issued,  whether or not the lost,  stolen or  destroyed  Certificate
shall be found at any time.

     SECTION 6.5. Temporary  Securities.  Until definitive  Securities are ready
                  ----------------------
for  delivery,  the  Administrators  may prepare and, in the case of the Capital
Securities, the Institutional Trustee shall authenticate,  temporary Securities.
Temporary Securities shall be substantially in form of definitive Securities but
may have variations that the Administrators  consider  appropriate for temporary
Securities. Without unreasonable delay, the Administrators shall prepare and, in
the case of the Capital Securities, the Institutional Trustee shall authenticate
definitive Securities in exchange for temporary Securities.

     SECTION  6.6.  Cancellation.  The  Administrators  at any time may  deliver
                    ------------
Securities to the Institutional  Trustee for  cancellation.  The Registrar shall
forward  to the  Institutional  Trustee  any  Securities  surrendered  to it for
registration of transfer, redemption or payment. The Institutional Trustee shall
promptly  cancel  all  Securities  surrendered  for  registration  of  transfer,
payment,  replacement  or  cancellation  and  shall  dispose  of  such  canceled
Securities as the  Administrators  direct.  The Administrators may not issue new
Securities to replace Securities that have been paid or that have been delivered
to the Institutional Trustee for cancellation.

     SECTION 6.7. Rights of Holders; Waivers of Past Defaults.
                  -------------------------------------------

          (a) The legal title to the Trust Property is vested exclusively in the
Institutional  Trustee (in its capacity as such) in accordance with Section 2.5,
and the  Holders  shall  not have any  right or  title  therein  other  than the
undivided  beneficial  interest  in the assets of the Trust  conferred  by their
Securities and they shall have no right to call for any partition or division of
property,  profits  or rights  of the  Trust  except  as  described  below.  The
Securities  shall be personal  property giving only the rights  specifically set
forth therein and in this  Declaration.  The  Securities  shall have no, and the
issuance of the Securities shall not be subject to,  preemptive or other similar
rights and when issued and delivered to Holders  against payment of the purchase
price  therefor,  the  Securities  will be fully paid and  nonassessable  by the
Trust.

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

          (c) At any time after a declaration  of  acceleration  with respect to
the  Debentures has been made and before a judgment or decree for payment of the
money  due has  been  obtained  by the  Debenture  Trustee  as  provided  in the
Indenture, if the Institutional Trustee, subject to the provisions hereof, fails
to annul any such  declaration  and waive such default,  the Holders of not less

                                      -31-
<PAGE>

than a Majority  in  liquidation  amount of the Capital  Securities,  by written
notice to the Institutional  Trustee, the Sponsor and the Debenture Trustee, may
rescind and annul such declaration and its consequences if:

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

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

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

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

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

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

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

          (e) Upon  receipt  by the  Institutional  Trustee  of  written  notice
declaring such an acceleration,  or rescission and annulment thereof, by Holders
of any part of the Capital  Securities,  a record date shall be established  for
determining  Holders of outstanding  Capital Securities entitled to join in such
notice,  which  record  date  shall be at the close of  business  on the day the
Institutional  Trustee receives such notice. The Holders on such record date, or
their duly designated proxies, and only such Persons,  shall be entitled to join
in such notice,  whether or not such Holders  remain  Holders  after such record
date; provided, that, unless such declaration of acceleration, or rescission and
annulment,  as the case may be,  shall have  become  effective  by virtue of the
requisite  percentage  having  joined in such notice prior to the day that is 90
days after such record date,  such notice of  declaration  of  acceleration,  or
rescission and annulment,  as the case may be, shall  automatically  and without
further  action by any Holder be canceled and of no further  effect.  Nothing in
this  paragraph  shall  prevent a Holder,  or a proxy of a Holder,  from giving,
after  expiration of such 90-day period,  a new written notice of declaration of
acceleration,  or rescission and annulment thereof,  as the case may be, that is
identical to a written notice that has been canceled  pursuant to the proviso to
the preceding  sentence,  in which event a new record date shall be  established
pursuant to the provisions of this Section 6.7.

                                      -32-
<PAGE>

          (f) Except as  otherwise  provided in this Section 6.7, the Holders of
not less than a Majority in liquidation amount of the Capital Securities may, on
behalf of the Holders of all the Capital  Securities,  waive any past default or
Event of Default and its  consequences.  Upon such  waiver,  any such default or
Event of  Default  shall  cease to exist,  and any  default  or Event of Default
arising  therefrom shall be deemed to have been cured, for every purpose of this
Declaration,  but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

                                  ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

     SECTION 7.1.  Dissolution  and  Termination  of Trust.  (a) The Trust shall
                   ---------------------------------------
dissolve on the first to occur of

          (i) unless earlier  dissolved,  on October 10, 2038, the expiration of
     the term of the Trust;

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

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

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

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

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

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

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

                                      -33-
<PAGE>

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

                                  ARTICLE VIII
                              TRANSFER OF INTERESTS

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

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

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

          (d) The Registrar shall provide for the registration of Securities and
of transfers of Securities,  which will be effected without charge but only upon
payment (with such indemnity as the Registrar may require) in respect of any tax
or other  governmental  charges  that may be imposed  in  relation  to it.  Upon
surrender for  registration of transfer of any  Securities,  the Registrar shall
cause one or more new  Securities  to be  issued  in the name of the  designated
transferee or transferees. Any Security issued upon any registration of transfer
or exchange  pursuant to the terms of this  Declaration  shall evidence the same
Security and shall be entitled to the same benefits  under this  Declaration  as
the Security  surrendered upon such registration of transfer or exchange.  Every
Security  surrendered  for  registration  of transfer  shall be accompanied by a
written  instrument  of  transfer  in form  similar to Exhibits B and C attached
hereto  satisfactory  to the  Registrar  duly  executed  by the  Holder  or such
Holder's  attorney duly  authorized in writing.  Each Security  surrendered  for
registration of transfer shall be canceled by the Institutional Trustee pursuant
to Section 6.6. A transferee  of a Security  shall be entitled to the rights and
subject  to the  obligations  of a Holder  hereunder  upon the  receipt  by such
transferee of a Security. By acceptance of a Security,  each transferee shall be
deemed to have agreed to be bound by this Declaration.

          (e)  Neither  the Trust nor the  Registrar  shall be  required  (i) to
issue,  register the transfer  of, or exchange  any  Securities  during a period

                                      -34-
<PAGE>

beginning at the opening of business 15 days before the day of any  selection of
Securities  for  redemption  and ending at the close of business on the earliest
date on which the relevant  notice of redemption is deemed to have been given to
all Holders of the  Securities to be redeemed,  or (ii) to register the transfer
or exchange of any  Security so  selected  for  redemption  in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

     SECTION 8.2. Transfer Procedures and Restrictions.
                  ------------------------------------

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

          (b) When Capital  Securities  are  presented to the  Registrar  (x) to
register  the  transfer of such  Capital  Securities,  or (y) to  exchange  such
Capital  Securities  for an equal number of Capital  Securities  represented  by
different  Certificates,  the Registrar  shall register the transfer or make the
exchange as requested if its reasonable  requirements  for such  transaction are
met; provided, however, that the Capital Securities surrendered for registration
of transfer  or exchange  shall be duly  endorsed  or  accompanied  by a written
instrument  of transfer  in form  reasonably  satisfactory  to the Trust and the
Registrar,  duly executed by the Holder thereof or his attorney duly  authorized
in writing and (i) if such Capital  Securities  are being  transferred to a QIB,
accompanied  by a certificate of the  transferor  substantially  in the form set
forth  as  Exhibit  C  hereto  or (ii)  if such  Capital  Securities  are  being
transferred  otherwise  than  to a  QIB,  accompanied  by a  certificate  of the
transferee substantially in the form set forth as Exhibit B hereto.

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

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

                                      -35-
<PAGE>

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

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

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

                                      -36-
<PAGE>

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

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

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

          (e) Each party hereto  understands  and hereby agrees that the Initial
Purchaser is intended  solely to be an interim holder of the Capital  Securities
and is purchasing such securities to facilitate consummation of the transactions
contemplated herein and in the documents  ancillary hereto.  Notwithstanding any
provision in this Declaration to the contrary,  the Initial Purchaser shall have
the right upon notice (a "Transfer Notice") to the Institutional Trustee and the
Sponsor to transfer title in and to the Capital Securities, provided the Initial
Purchaser  shall take  reasonable  steps to ensure that such  transfer is exempt
from  registration  under the  Securities  Act of 1933,  as  amended,  and rules
promulgated  thereunder.  Any Transfer  Notice  delivered  to the  Institutional
Trustee and Sponsor  pursuant  to the  preceding  sentence  shall  indicate  the
aggregate  liquidation amount of Capital Securities being transferred,  the name
and address of the transferee  thereof (the  "Transferee")  and the date of such
transfer. Notwithstanding any provision in this Declaration to the contrary, the
transfer by the  Initial  Purchaser  of title in and to the  Capital  Securities
pursuant to a Transfer Notice shall not be subject to any  requirement  relating
to  Opinions  of  Counsel,  Certificates  of  Transfer  or any other  Opinion or
Certificate   applicable   to  transfers   hereunder  and  relating  to  Capital
Securities.  To facilitate  transfers by the Initial Purchaser  pursuant to this
Section  8.2(e),   an   Administrator   shall  cause  to  be  delivered  to  the
Institutional  Trustee  on the  Closing  Date a  number  of  Capital  Securities
Certificates  executed  in  blank  equal to the  number  of  Capital  Securities
Certificates  delivered to Initial  Purchaser  upon the Closing Date (the "Blank

                                      -37-
<PAGE>

Certificates")  to be held by the  Institutional  Trustee pending receipt by the
Institutional  Trustee  of  one  or  more  Transfer  Notices  from  the  Initial
Purchaser.  Upon receipt of any such Transfer Notice from the Initial Purchaser,
the  Institutional  Trustee  is hereby  and  thereby  authorized  to,  and shall
thereupon,  complete a Blank  Certificate with the information  provided in such
Transfer  Notice and hereby and thereby is authorized  to, and shall  thereupon,
authenticate the Capital Security Certificate so completed and cause the same to
be delivered to the Transferee.

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

                                   ARTICLE IX
                       LIMITATION OF LIABILITY OF HOLDERS
                        OF SECURITIES, TRUSTEES OR OTHERS

     SECTION  9.1.  Liability.  (a)  Except  as  expressly  set  forth  in  this
                    ---------
Declaration,  the Guarantee and the terms of the  Securities,  the Sponsor shall
not be:

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

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

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

          (c) Pursuant to ss. 3803(a) of the Statutory Trust Act, the Holders of
the Securities  shall be entitled to the same  limitation of personal  liability
extended to stockholders of private  corporations for profit organized under the
General  Corporation  Law  of  the  State  of  Delaware,   except  as  otherwise
specifically set forth herein.

     SECTION  9.2.  Exculpation.  (a) No  Indemnified  Person  shall be  liable,
                    ------------
responsible  or  accountable in damages or otherwise to the Trust or any Covered
Person for any loss,  damage or claim  incurred by reason of any act or omission
performed or omitted by such  Indemnified  Person in good faith on behalf of the
Trust and in a manner such Indemnified  Person reasonably  believed to be within
the  scope  of the  authority  conferred  on  such  Indemnified  Person  by this
Declaration  or by  law,  except  that  an  Indemnified  Person  (other  than an
Administrator)  shall be liable for any such loss,  damage or claim  incurred by
reason of such  Indemnified  Person's  negligence  or  willful  misconduct  with

                                      -38-

<PAGE>

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

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

     SECTION 9.3.  Fiduciary  Duty. (a) To the extent that, at law or in equity,
                   ---------------
an Indemnified  Person has duties  (including  fiduciary duties) and liabilities
relating  thereto to the Trust or to any other Covered  Person,  an  Indemnified
Person acting under this Declaration  shall not be liable to the Trust or to any
other  Covered  Person for its good faith  reliance  on the  provisions  of this
Declaration.  The  provisions  of this  Declaration,  to the  extent  that  they
restrict the duties and liabilities of an Indemnified  Person otherwise existing
at law or in equity (other than the duties imposed on the Institutional  Trustee
under the Trust Indenture Act), are agreed by the parties hereto to replace such
other duties and liabilities of the Indemnified Person.

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

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

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

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

                                      -39-
<PAGE>

the  Indemnified  Person  did not act in good  faith and in a manner  which such
Person reasonably  believed to be in or not opposed to the best interests of the
Trust,  and, with respect to any criminal  action or proceeding,  had reasonable
cause to believe that such conduct was unlawful.

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

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

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

               (v) To the fullest extent permitted by law,  expenses  (including
          attorneys'  fees and expenses)  incurred by an  Indemnified  Person in
          defending a civil,  criminal,  administrative or investigative action,
          suit or  proceeding  referred  to in  paragraphs  (i) and (ii) of this
          Section  9.4(a)  shall be paid by the  Sponsor in advance of the final
          disposition  of such  action,  suit or  proceeding  upon receipt of an

                                      -40-
<PAGE>

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

          (b) The Sponsor shall  indemnify,  to the fullest extent  permitted by
applicable  law,  each  Indemnified  Person  from and  against any and all loss,
damage, liability, tax (other than taxes based on the income of such Indemnified
Person),  penalty, expense or claim of any kind or nature whatsoever incurred by
such Indemnified Person arising out of or in connection with or by reason of the
creation,  administration or termination of the Trust, or any act or omission of
such  Indemnified  Person  in good  faith on behalf of the Trust and in a manner
such Indemnified Person reasonably  believed to be within the scope of authority
conferred  on such  Indemnified  Person  by  this  Declaration,  except  that no
Indemnified  Person shall be entitled to be  indemnified in respect of any loss,
damage,  liability,  tax, penalty, expense or claim incurred by such Indemnified
Person by reason of negligence or willful  misconduct  with respect to such acts
or omissions.

          (c) The  indemnification  and advancement of expenses  provided by, or
granted  pursuant  to, the other  paragraphs  of this  Section  9.4 shall not be
deemed exclusive of any other rights to which those seeking  indemnification and
advancement  of  expenses  may  be  entitled   under  any  agreement,   vote  of
stockholders  or  disinterested  directors  of the  Sponsor or Capital  Security
Holders of the Trust or otherwise,  both as to action in such Person's  official
capacity and as to action in another  capacity  while  holding such office.  All

                                      -41-
<PAGE>

rights to indemnification  under this Section 9.4 shall be deemed to be provided
by a contract between the Sponsor and each Indemnified Person who serves in such
capacity  at any time  while  this  Section  9.4 is in  effect.  Any  repeal  or
modification of this Section 9.4 shall not affect any rights or obligations then
existing.

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

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

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

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

     SECTION 9.5.  Outside  Businesses.  Any Covered  Person,  the Sponsor,  the
                   -------------------
Delaware Trustee and the  Institutional  Trustee (subject to Section 4.3(c)) may
engage in or possess an  interest  in other  business  ventures of any nature or
description, independently or with others, similar or dissimilar to the business
of the Trust,  and the Trust and the Holders of Securities  shall have no rights
by virtue of this Declaration in and to such independent  ventures or the income
or profits  derived  therefrom,  and the  pursuit of any such  venture,  even if
competitive  with the  business  of the Trust,  shall not be deemed  wrongful or
improper.  None of any Covered Person, the Sponsor,  the Delaware Trustee or the
Institutional Trustee shall be obligated to present any particular investment or

                                      -42-
<PAGE>

other  opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust,  could be taken by the Trust, and any Covered Person,
the Sponsor,  the Delaware Trustee and the Institutional  Trustee shall have the
right to take for its own account (individually or as a partner or fiduciary) or
to recommend to others any such particular investment or other opportunity.  Any
Covered Person, the Delaware Trustee and the Institutional Trustee may engage or
be  interested  in any  financial or other  transaction  with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of,  securities or other  obligations of
the Sponsor or its Affiliates.

     SECTION 9.6. Compensation; Fee. (a) The Sponsor agrees:
                  -----------------

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

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

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

                                   ARTICLE X
                                   ACCOUNTING

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

     SECTION 10.2. Certain Accounting Matters.
                   --------------------------

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

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

          (c) The  Administrators  shall cause to be duly prepared and delivered
to each of the  Holders  of  Securities  Form 1099 or such other  annual  United
States federal income tax information statement required by the Code, containing

                                      -43-
<PAGE>

such  information  with  regard  to the  Securities  held by each  Holder  as is
required by the Code and the  Treasury  Regulations.  Notwithstanding  any right
under the Code to deliver any such statement at a later date, the Administrators
shall  endeavor to deliver all such  statements  within 30 days after the end of
each Fiscal Year of the Trust.

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

          (e) So long as the only  Holder  of the  Capital  Securities  is Bear,
Stearns Securities Corp., the Administrators will cause the Sponsor's reports on
Form FRY-9SP to be delivered to the Holder promptly  following their filing with
the Federal Reserve.

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

     SECTION 10.4.  Withholding.  The Institutional  Trustee or any Paying Agent
                    -----------
and the  Administrators  shall comply with all  withholding  requirements  under
United States  federal,  state and local law. The  Institutional  Trustee or any
Paying Agent shall request,  and each Holder shall provide to the  Institutional
Trustee or any Paying  Agent,  such forms or  certificates  as are  necessary to
establish  an exemption  from  withholding  with respect to the Holder,  and any
representations  and forms as shall reasonably be requested by the Institutional
Trustee or any Paying  Agent to assist it in  determining  the extent of, and in
fulfilling, its withholding obligations.  The Administrators shall file required
forms with applicable jurisdictions and, unless an exemption from withholding is
properly  established by a Holder,  shall remit amounts withheld with respect to
the Holder to  applicable  jurisdictions.  To the extent that the  Institutional
Trustee or any Paying  Agent is required to withhold and pay over any amounts to
any authority with respect to  distributions  or allocations to any Holder,  the
amount withheld shall be deemed to be a Distribution to the Holder in the amount
of the withholding.  In the event of any claimed overwithholding,  Holders shall
be limited  to an action  against  the  applicable  jurisdiction.  If the amount
required to be withheld was not withheld  from actual  Distributions  made,  the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by
the amount of such withholding.

                                   ARTICLE XI
                             AMENDMENTS AND MEETINGS

     SECTION  11.1.  Amendments.  (a)  Except  as  otherwise  provided  in  this
                     ----------
Declaration or by any applicable  terms of the Securities,  this Declaration may
only be amended by a written instrument approved and executed by:

                                      -44-
<PAGE>

          (i) the Institutional Trustee,

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

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

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

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

          (i) unless the Institutional Trustee shall have first received

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

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

          (ii) if the result of such amendment would be to

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

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

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

               (D)  cause the  Debenture  Issuer to be unable to treat an amount
          equal to the Liquidation  Amount of the Debentures as "Tier 1 Capital"
          for  purposes  of the  capital  adequacy  guidelines  of  the  Federal
          Reserve.

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

          (d) In addition to and  notwithstanding  any other  provision  in this
Declaration,  without the consent of each affected Holder,  this Declaration may

                                      -45-
<PAGE>

not be amended to (i)  change  the amount or timing of any  Distribution  on the
Securities or otherwise adversely affect the amount of any Distribution required
to be made in respect of the  Securities as of a specified date or (ii) restrict
the right of a Holder to institute suit for the  enforcement of any such payment
on or after such date.

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

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

     (g) This  Declaration may be amended by the  Institutional  Trustee and the
Holder of a Majority in liquidation  amount of the Common Securities without the
consent of the Holders of the Capital Securities to:

          (i) cure any ambiguity;

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

          (iii)  add  to  the  covenants,  restrictions  or  obligations  of the
     Sponsor; or

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

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

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

          (a) Meetings of the Holders of any class of  Securities  may be called
at any  time  by  the  Administrators  (or  as  provided  in  the  terms  of the
Securities)  to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration, the terms of
the  Securities  or the  rules  of any  stock  exchange  on  which  the  Capital
Securities are listed or admitted for trading, if any. The Administrators  shall
call a meeting of the  Holders of such class if directed to do so by the Holders
of not less than 10% in  liquidation  amount of such class of  Securities.  Such
direction shall be given by delivering to the  Administrators  one or more calls

                                      -46-
<PAGE>

in a writing  stating that the signing  Holders of the Securities wish to call a
meeting and indicating the general or specific  purpose for which the meeting is
to be called.  Any Holders of the Securities  calling a meeting shall specify in
writing the  Certificates  held by the Holders of the Securities  exercising the
right  to  call  a  meeting  and  only  those  Securities  represented  by  such
Certificates  shall be counted for purposes of determining  whether the required
percentage set forth in the second sentence of this paragraph has been met.

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

          (i) notice of any such  meeting  shall be given to all the  Holders of
     the Securities  having a right to vote thereat at least 7 days and not more
     than 60 days before the date of such meeting.  Whenever a vote,  consent or
     approval of the Holders of the  Securities  is permitted or required  under
     this  Declaration  or the rules of any stock  exchange on which the Capital
     Securities are listed or admitted for trading,  if any, such vote,  consent
     or approval may be given at a meeting of the Holders of the Securities. Any
     action that may be taken at a meeting of the Holders of the  Securities may
     be taken without a meeting if a consent in writing setting forth the action
     so taken is signed by the  Holders of the  Securities  owning not less than
     the minimum  amount of  Securities  that would be necessary to authorize or
     take such action at a meeting at which all Holders of the Securities having
     a right to vote  thereon  were  present  and voting.  Prompt  notice of the
     taking of action  without a meeting  shall be given to the  Holders  of the
     Securities  entitled  to vote  who  have  not  consented  in  writing.  The
     Administrators may specify that any written ballot submitted to the Holders
     of the  Securities  for the purpose of taking any action  without a meeting
     shall  be  returned  to  the  Trust  within  the  time   specified  by  the
     Administrators;

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

          (iii) unless the Statutory Trust Act, this  Declaration,  the terms of
     the  Securities,  the Trust Indenture Act or the listing rules of any stock
     exchange on which the Capital  Securities  are then listed for trading,  if
     any,  otherwise  provides,  the  Administrators,  in their sole discretion,
     shall  establish  all other  provisions  relating to meetings of Holders of
     Securities,  including  notice of the time, place or purpose of any meeting

                                      -47-
<PAGE>

     at which any  matter is to be voted on by any  Holders  of the  Securities,
     waiver  of any such  notice,  action by  consent  without  a  meeting,  the
     establishment of a record date, quorum requirements, voting in person or by
     proxy or any other matter with respect to the exercise of any such right to
     vote; provided, however, that each meeting shall be conducted in the United
           --------  -------
     States (as that term is defined in Treasury Regulationsss.301.7701-7).

                                  ARTICLE XII
                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

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

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

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

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

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

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

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

                                      -48-
<PAGE>

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

          (a) if it is not a  natural  person,  the  Delaware  Trustee  is  duly
organized,  validly existing and in good standing under the laws of the State of
Delaware;

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

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

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

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

          (f) the Delaware  Trustee is a natural person who is a resident of the
State of Delaware  or, if not a natural  person,  it is an entity  which has its
principal  place of  business in the State of Delaware  and, in either  case,  a
Person that  satisfies  for the Trust the  requirements  of Section  3807 of the
Statutory Trust Act.

                                  ARTICLE XIII
                                  MISCELLANEOUS

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

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

                                      -49-
<PAGE>

                    Weststar Financial Services Corporation I
                   c/o Weststar Financial Services Corporation
                   79 Woodfin Place
                   Asheville, NC 28801
                   Attention: Randall C. Hall
                   Telecopy: (828) 252-1792
                   Telephone: (828) 252-1735

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

                   Wells Fargo Delaware Trust Company
                   919 Market Street Suite 700
                   Wilmington, DE 19801
                   Attention: Corporate Trust Division
                   Telecopy: 302-575-2006
                   Telephone: 302-575-2005

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

                   Wells Fargo Bank, National Association
                   919 Market Street Suite 700
                   Wilmington, DE 19801
                   Attention: Corporate Trust Division
                   Telecopy: 302-575-2006
                   Telephone: 302-575-2005

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

                   Weststar Financial Services Corporation
                   79 Woodfin Place
                   Asheville, NC 28801
                   Attention: Randall C. Hall
                   Telecopy: (828) 252-1792
                   Telephone: (828) 252-1735

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

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

                                      -50-
<PAGE>

     SECTION  13.2.   Governing  Law.  This   Declaration  and  the  rights  and
                      --------------
obligations  of the parties  hereunder  shall be governed by and  interpreted in
accordance with the law of the State of Delaware and all rights, obligations and
remedies  shall be governed by such laws  without  regard to the  principles  of
conflict of laws of the State of Delaware or any other  jurisdiction  that would
call for the application of the law of any jurisdiction  other than the State of
Delaware.

     SECTION 13.3. Submission to Jurisdiction.
                   ---------------------------

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

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

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

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

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

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

                                      -51-
<PAGE>

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

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

                                      -52-
<PAGE>

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

                                  WELLS FARGO DELAWARE TRUST
                                     COMPANY,
                                     as Delaware Trustee

                                  By:___________________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

                                  WELLS FARGO BANK, NATIONAL
                                     ASSOCIATION,
                                     as Institutional Trustee

                                  By:___________________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

                                  Weststar Financial Services Corporation
                                      as Sponsor

                                  By:/s/ Randall C. Hall
                                     -------------------------------------------
                                     Name: Randall C. Hall
                                     Title: Executive Vice President and CFO

                                  By:/s/ Randall C. Hall
                                     -------------------------------------------
                                      Administrator

                                  By: /s/ G. Gordon Greewood
                                      ------------------------------------------
                                      Administrator

                                      -53-
<PAGE>

                                     ANNEX I

                                    TERMS OF
                                TP SECURITIES AND
                                COMMON SECURITIES

     Pursuant to Section 6.1 of the Amended and Restated  Declaration  of Trust,
dated as of October 10, 2003 (as amended from time to time, the  "Declaration"),
the designation, rights, privileges,  restrictions,  preferences and other terms
and provisions of the Capital  Securities and the Common  Securities are set out
below (each  capitalized  term used but not  defined  herein has the meaning set
forth in the Declaration):

     1.   Designation and Number.
          ----------------------

     (a) Capital  Securities.  4,000 Capital  Securities  of Weststar  Financial
Services  Corporation  I (the  "Trust"),  with an aggregate  stated  liquidation
amount  with  respect  to the  assets  of the  Trust  of  Four  Million  Dollars
($4,000,000) and a stated  liquidation  amount with respect to the assets of the
Trust of $1,000 per Capital Security,  are hereby designated for the purposes of
identification  only as the "TP  Securities"  (the  "Capital  Securities").  The
Capital  Security  Certificates  evidencing  the  Capital  Securities  shall  be
substantially in the form of Exhibit A-1 to the  Declaration,  with such changes
and  additions  thereto or  deletions  therefrom  as may be required by ordinary
usage,  custom or practice  or to conform to the rules of any stock  exchange on
which the Capital Securities are listed, if any.

     (b) Common  Securities.124  Common  Securities  of the Trust  (the  "Common
Securities") will be evidenced by Common Security Certificates  substantially in
the form of Exhibit A-2 to the  Declaration,  with such  changes  and  additions
thereto or deletions  therefrom as may be required by ordinary usage,  custom or
practice. In the absence of an Event of Default, the Common Securities will have
an aggregate stated  liquidation  amount with respect to the assets of the Trust
of One Hundred Twenty Four Thousand Dollars  ($124,000) and a stated liquidation
amount with respect to the assets of the Trust of $1,000 per Common Security.

     2.  Distributions.  (a)  Distributions  payable  on each  Security  will be
         -------------
payable at a variable  per annum rate of  interest,  reset  quarterly,  equal to
LIBOR,  as determined on the LIBOR  Determination  Date, plus 3.15% (the "Coupon
Rate") of the stated liquidation amount of $1,000 per Security,  such rate being
the rate of interest  payable on the Debentures to be held by the  Institutional
Trustee.  Except  as  set  forth  below  in  respect  of  an  Extension  Period,
Distributions  in arrears for more than one quarterly  period will bear interest
thereon  compounded  quarterly  at the  applicable  Coupon  Rate for  each  such
quarterly  period  (to  the  extent  permitted  by  applicable  law).  The  term
"Distributions" as used herein includes cash distributions,  any such compounded
distributions  and any  Additional  Interest  payable on the  Debentures  unless
otherwise stated. A Distribution is payable only to the extent that payments are
made in respect of the Debentures held by the  Institutional  Trustee and to the
extent the  Institutional  Trustee has funds  legally  available in the Property
Account  therefor.  The amount of  Distributions  payable for any period will be
computed for any full  quarterly  Distribution  period on the basis of a 360-day
year and the actual number of days elapsed in the relevant  Distribution period;
provided,  however,  that  upon the  occurrence  of a Special  Event  redemption
pursuant  to  paragraph  4(a)  below  the  amounts  payable   pursuant  to  this
Declaration  shall be  calculated  as set  forth in the  definition  of  Special
Redemption Price.

                                     A-I-1
<PAGE>

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

          (1) On the  second  LIBOR  Business  Day  (provided,  that on such day
                                                     --------
     commercial  banks are open for  business  (including  dealings  in  foreign
     currency  deposits) in London (a "LIBOR  Banking  Day"),  and otherwise the
     next  preceding  LIBOR Business Day that is also a LIBOR Banking Day) prior
     to January 15,  April 15, July 15 and October 15 (except,  with  respect to
     the first interest payment period,  on October 8, 2003),  (each such day, a
     "LIBOR Determination Date"), LIBOR shall equal the rate, as obtained by the
     Calculation  Agent for three-month  U.S.  Dollar deposits in Europe,  which
     appears on Telerate  Page 3750 (as defined in the  International  Swaps and
     Derivatives  Association,  Inc. 1991  Interest  Rate and Currency  Exchange
     Definitions)  or such other page as may replace such Telerate Page 3750, as
     of 11:00 a.m. (London time) on such LIBOR  Determination  Date, as reported
     by Bloomberg Financial Markets Commodities News. "LIBOR Business Day" means
     any day that is not a  Saturday,  Sunday or other  day on which  commercial
     banking  institutions  in New York,  New York or  Wilmington,  Delaware are
     authorized  or obligated by law or  executive  order to be closed.  If such
     rate is superseded  on Telerate Page 3750 by a corrected  rate before 12:00
     noon (London time) on the same LIBOR Determination Date, the corrected rate
     as so substituted will be the applicable LIBOR for that LIBOR Determination
     Date.

          (2) If, on any LIBOR  Determination Date, such rate does not appear on
     Telerate Page 3750 as reported by Bloomberg  Financial Markets  Commodities
     News or such  other  page as may  replace  such  Telerate  Page  3750,  the
     Calculation  Agent  shall  determine  the  arithmetic  mean of the  offered
     quotations  of the Reference  Banks (as defined  below) to leading banks in
     the London  interbank market for three-month U.S. Dollar deposits in Europe
     (in an amount determined by the Calculation Agent) by reference to requests
     for quotations as of  approximately  11:00 a.m.  (London time) on the LIBOR
     Determination  Date made by the Calculation  Agent to the Reference  Banks.
     If, on any LIBOR  Determination  Date, at least two of the Reference  Banks
     provide  such  quotations,  LIBOR shall equal the  arithmetic  mean of such
     quotations.  If, on any LIBOR  Determination  Date, only one or none of the
     Reference  Banks provide such a quotation,  LIBOR shall be deemed to be the
     arithmetic  mean of the offered  quotations that at least two leading banks
     in the City of New York (as selected by the Calculation  Agent) are quoting
     on the  relevant  LIBOR  Determination  Date for  three-month  U.S.  Dollar
     deposits in Europe at approximately  11:00 a.m. (London time) (in an amount
     determined by the Calculation  Agent).  As used herein,  "Reference  Banks"
     means  four major  banks in the London  interbank  market  selected  by the
     Calculation Agent.
                                     A-I-2
<PAGE>

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

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

          (d) On each LIBOR  Determination  Date,  the  Calculation  Agent shall
notify,  in writing,  the Sponsor and the Paying Agent of the applicable  Coupon
Rate in effect for the related  Distribution  payment  period.  The  Calculation
Agent  shall,  upon the  request of the Holder of any  Securities,  provide  the
Coupon Rate then in effect.  All calculations  made by the Calculation  Agent in
the absence of manifest  error shall be conclusive  for all purposes and binding
on the  Sponsor  and the Holders of the  Securities.  The Paying  Agent shall be
entitled  to rely on  information  received  from the  Calculation  Agent or the
Sponsor as to the Coupon Rate. The Sponsor shall, from time to time, provide any
necessary  information  to the  Paying  Agent  relating  to any  original  issue
discount  and  interest  on the  Securities  that is included in any payment and
reportable for taxable income calculation purposes.

          (e)  Distributions  on the Securities will be cumulative,  will accrue
from the date of original issuance, and will be payable, subject to extension of
Distribution  payment  periods  as  described  herein,  quarterly  in arrears on
January 7, April 7, July 7 and  October 7 of each  year,  commencing  January 7,
2004 (each,  a  "Distribution  Payment  Date").  Subject to prior  Submission of
Notice (as defined in the Indenture),  the Debenture  Issuer has the right under
the Indenture to defer  payments of interest on the  Debentures by extending the
interest  payment period for up to 20 consecutive  quarterly  periods (each,  an
"Extension Period") at any time and from time to time on the Debentures, subject
to the conditions  described  below,  during which Extension  Period no interest
shall be due and payable  (except any  Additional  Interest  that may be due and
payable).  During any Extension Period,  interest will continue to accrue on the
Debentures,  and interest on such accrued  interest  (such accrued  interest and
interest  thereon  referred to herein as "Deferred  Interest") will accrue at an
annual rate equal to the Coupon Rate in effect for each such  Extension  Period,
compounded  quarterly  from the date  such  Deferred  Interest  would  have been
payable were it not for the Extension Period, to the extent permitted by law. No
Extension  Period may end on a date other than a  Distribution  Payment Date. At
the end of any  such  Extension  Period,  the  Debenture  Issuer  shall  pay all
Deferred Interest then accrued and unpaid on the Debentures;  provided, however,
                                                              --------  --------
that no  Extension  Period may extend  beyond the  Maturity  Date and  provided,
                                                                       ---------
further,  that, during any such Extension  Period,  the Debenture Issuer may not
-------
(i)  declare or pay any  dividends  or  distributions  on, or redeem,  purchase,
acquire,  or make a  liquidation  payment with respect to, any of the  Debenture
Issuer's  capital stock or (ii) make any payment due on or repay,  repurchase or
redeem any debt  securities of the Debenture  Issuer that rank pari passu in all
respects  with  or  junior  in  interest  to  the  Debentures  (other  than  (a)
repurchases, redemptions or other acquisitions of shares of capital stock of the
Debenture Issuer (A) in connection with any employment contract, benefit plan or
other  similar  arrangement  with or for the  benefit of one or more  employees,

                                     A-I-3
<PAGE>

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

          (f)  Distributions  on the  Securities  will be payable to the Holders
thereof as they appear on the books and records of the Registrar on the relevant
record dates. The relevant record dates shall be selected by the Administrators,
which dates shall be 15 days before the relevant  payment  dates.  Distributions
payable  on any  Securities  that are not  punctually  paid on any  Distribution
Payment  Date,  as a result  of the  Debenture  Issuer  having  failed to make a
payment under the Debentures,  as the case may be, when due (taking into account
any Extension Period), will cease to be payable to the Person in whose name such
Securities  are  registered  on the  relevant  record date,  and such  defaulted
Distribution will instead be payable to the Person in whose name such Securities
are registered on the special record date or other  specified date determined in
accordance with the Indenture. If any date on which Distributions are payable on
the 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
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 payment date.

                                     A-I-4
<PAGE>

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

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

     The Sponsor,  as the Holder of all of the Common Securities,  has the right
at any  time to  dissolve  the  Trust  (including  without  limitation  upon the
occurrence of a Tax Event,  an Investment  Company Event or a Capital  Treatment
Event),  subject to the receipt by the Debenture  Issuer of prior  approval from
the Board of Governors of the Federal Reserve System (the "Federal Reserve"), if
then required  under  applicable  capital  guidelines or policies of the Federal
Reserve and, after  satisfaction of liabilities to creditors of the Trust, cause
the  Debentures to be distributed to the Holders of the Securities on a Pro Rata
basis in accordance with the aggregate stated liquidation amount thereof.

     The Trust shall dissolve on the first to occur of (i) October 10, 2038, the
expiration of the term of the Trust, (ii) a Bankruptcy Event with respect to the
Sponsor, the Trust or the Debenture Issuer, (iii) (other than in connection with
a merger,  consolidation or similar transaction not prohibited by the Indenture,
this  Declaration  or the  Guarantee,  as the  case  may  be)  the  filing  of a
certificate  of dissolution of the Sponsor or upon the revocation of the charter
of the  Sponsor  and the  expiration  of 90 days  after  the date of  revocation
without a  reinstatement  thereof,  (iv) the  distribution to the Holders of the
Securities of the Debentures, upon exercise of the right of the Holder of all of
the outstanding  Common Securities to dissolve the Trust as described above, (v)
the entry of a decree of a judicial  dissolution of the Sponsor or the Trust, or
(vi) when all of the  Securities  shall have been called for  redemption and the
amounts necessary for redemption  thereof shall have been paid to the Holders in
accordance  with the terms of the Securities.  As soon as practicable  after the
dissolution of the Trust and upon completion of the winding up of the Trust, the
Trust shall terminate upon the filing of a certificate of cancellation  with the
Secretary of State of the State of Delaware.

                                     A-I-5
<PAGE>

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

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

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

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

          4. Redemption and Distribution.
             ----------------------------

          (a) The Debentures  will mature on October 7, 2033. The Debentures may
be  redeemed by the  Debenture  Issuer,  in whole or in part,  on any January 7,
April 7, July 7 or  October  7 on or after  October  7,  2008 at the  Redemption
Price,  upon not less than 30 nor more than 60 days'  notice to  Holders of such
Debentures. In addition, upon the occurrence and continuation of a Tax Event, an
Investment  Company Event or a Capital  Treatment  Event,  the Debentures may be
redeemed by the Debenture Issuer in whole or in part, at any time within 90 days

                                     A-I-6
<PAGE>

following the occurrence of such Tax Event,  Investment Company Event or Capital
Treatment  Event,  as the case may be (the "Special  Redemption  Date"),  at the
Special Redemption Price, upon not less than 30 nor more than 60 days' notice to
Holders of the Debentures so long as such Tax Event, Investment Company Event or
Capital  Treatment  Event, as the case may be, is continuing.  In each case, the
right of the  Debenture  Issuer to  redeem  the  Debentures  is  subject  to the
Debenture  Issuer having  received prior approval from the Federal  Reserve,  if
then required  under  applicable  capital  guidelines or policies of the Federal
Reserve.

     "Tax Event" means the receipt by the  Debenture  Issuer and the Trust of an
opinion of counsel  experienced  in such matters to the effect that, as a result
of any amendment to or change  (including any announced  prospective  change) in
the laws or any  regulations  thereunder  of the United  States or any political
subdivision  or  taxing  authority  thereof  or  therein,  or as a result of any
official  administrative  pronouncement  (including  any private  letter ruling,
technical advice memorandum,  regulatory procedure,  notice or announcement) (an
"Administrative Action") or judicial decision interpreting or applying such laws
or  regulations,  regardless of whether such  Administrative  Action or judicial
decision is issued to or in connection with a proceeding involving the Debenture
Issuer  or the Trust and  whether  or not  subject  to review or  appeal,  which
amendment, clarification,  change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance
of the Debentures,  there is more than an insubstantial risk that: (i) the Trust
is,  or will be within 90 days of the date of such  opinion,  subject  to United
States  federal  income tax with  respect to income  received  or accrued on the
Debentures;  (ii) interest  payable by the Debenture Issuer on the Debentures is
not, or within 90 days of the date of such opinion,  will not be,  deductible by
the Debenture  Issuer, in whole or in part, for United States federal income tax
purposes;  or (iii)  the Trust is, or will be within 90 days of the date of such
opinion,  subject to more than a de  minimis  amount of other  taxes  (including
withholding taxes), duties, assessments or other governmental charges.

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

     "Capital Treatment Event" means the receipt by the Debenture Issuer and the
Trust of an opinion of counsel  experienced  in such matters to the effect that,
as a result of any amendment to, or change in, the laws, rules or regulations of
the United States or any  political  subdivision  thereof or therein,  or as the
result of any  official or  administrative  pronouncement  or action or decision
interpreting  or applying such laws,  rules or  regulations,  which amendment or
change is effective or which  pronouncement,  action or decision is announced on
or after the date of original issuance of the Debentures,  there is more than an
insubstantial  risk that the  Debenture  Issuer will not,  within 90 days of the
date of such  opinion,  be  entitled to treat an amount  equal to the  aggregate
Liquidation  Amount of the Capital  Securities  as "Tier 1 Capital" (or the then
equivalent  thereof)  for  purposes of the capital  adequacy  guidelines  of the
Federal Reserve (or any successor  regulatory  authority with  jurisdiction over

                                     A-I-7
<PAGE>

bank  holding  companies),  as then in effect and  applicable  to the  Debenture
Issuer; provided, however, that the distribution of the Debentures in connection
with the  Liquidation  of the Trust by the Debenture  Issuer shall not in and of
itself  constitute a Capital  Treatment Event unless such Liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.

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

     "Redemption  Price" means 100% of the  principal  amount of the  Debentures
being  redeemed  plus  accrued  and unpaid  interest on such  Debentures  to the
Redemption  Date or,  in the case of a  redemption  due to the  occurrence  of a
Special Event, to the Special Redemption Date if such Special Redemption Date is
on or after October 7, 2008.

     "Special  Redemption  Price"  means (1) if the Special  Redemption  Date is
before October 7, 2008, One Hundred Five Percent (105%) of the principal  amount
to be redeemed plus any accrued and unpaid interest  thereon to the date of such
redemption  and (2) if the  Special  Redemption  Date is on or after  October 7,
2008, the Redemption Price for such Special Redemption Date.

     "Redemption  Date"  means the date  fixed  for the  redemption  of  Capital
Securities, which shall be any January 7,April 7, July 7or October 7 on or after
October 7, 2008.

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

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

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

          (e) Redemption or Distribution Procedures.

               (i) Notice of any redemption of, or notice of distribution of the
          Debentures in exchange for, the Securities (a "Redemption/Distribution
          Notice")  will be  given  by the  Trust  by mail  to  each  Holder  of
          Securities to be redeemed or exchanged not fewer than 30 nor more than
          60 days  before  the date fixed for  redemption  or  exchange  thereof
          which,  in the  case of a  redemption,  will  be the  date  fixed  for
          redemption of the  Debentures.  For purposes of the calculation of the
          date of  redemption  or  exchange  and the dates on which  notices are
          given  pursuant to this  Section  4(e)(i),  a  Redemption/Distribution

                                     A-I-8
<PAGE>

          Notice  shall be  deemed  to be given on the day such  notice is first
          mailed by  first-class  mail,  postage  prepaid,  to  Holders  of such
          Securities. Each Redemption/Distribution  Notice shall be addressed to
          the  Holders of such  Securities  at the  address of each such  Holder
          appearing on the books and records of the Registrar.  No defect in the
          Redemption/Distribution  Notice or in the mailing thereof with respect
          to any Holder shall affect the validity of the  redemption or exchange
          proceedings with respect to any other Holder.

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

               (iii) If the  Securities are to be redeemed and the Trust gives a
          Redemption/Distribution Notice, which notice may only be issued if the
          Debentures  are  redeemed as set out in this  Section 4 (which  notice
          will be irrevocable),  then, provided,  that the Institutional Trustee
          has a  sufficient  amount  of  cash in  connection  with  the  related
          redemption or maturity of the Debentures,  the  Institutional  Trustee
          will  pay  the  relevant  Redemption  Price  to the  Holders  of  such
          Securities  by  check  mailed  to the  address  of  each  such  Holder
          appearing  on the books  and  records  of the Trust on the  redemption
          date.  If a  Redemption/Distribution  Notice shall have been given and
          funds deposited as required,  then  immediately  prior to the close of
          business  on the date of such  deposit,  Distributions  will  cease to
          accrue on the  Securities so called for  redemption  and all rights of
          Holders of such Securities so called for redemption will cease, except
          the right of the Holders of such  Securities to receive the applicable
          Redemption  Price  specified in Section 4(a), but without  interest on
          such Redemption  Price. If any date fixed for redemption of Securities
          is not a  Business  Day,  then  payment of any such  Redemption  Price
          payable on such date will be made on the next succeeding day that is a
          Business  Day  except  that,  if such  Business  Day falls in the next
          calendar year, such payment will be made on the immediately  preceding
          Business  Day,  in each case with the same force and effect as if made
          on such date fixed for redemption.  If payment of the Redemption Price
          in respect of any Securities is improperly withheld or refused and not
          paid  either by the  Trust or by the  Debenture  Issuer  as  guarantor
          pursuant  to the  Guarantee,  Distributions  on such  Securities  will
          continue  to accrue  at the then  applicable  rate  from the  original
          redemption  date to the  actual  date of  payment,  in which  case the
          actual  payment date will be considered  the date fixed for redemption
          for purposes of calculating the Redemption  Price. In the event of any
          redemption of the Capital  Securities issued by the Trust in part, the
          Trust shall not be required to (i) issue,  register the transfer of or
          exchange  any  Security  during a period  beginning  at the opening of
          business 15 days before any  selection  for  redemption of the Capital
          Securities and ending at the close of business on the earliest date on
          which the relevant  notice of  redemption is deemed to have been given
          to all  Holders of the  Capital  Securities  to be so redeemed or (ii)
          register  the  transfer  of or  exchange  any  Capital  Securities  so
          selected  for  redemption,  in  whole  or  in  part,  except  for  the
          unredeemed portion of any Capital Securities being redeemed in part.

                                     A-I-9
<PAGE>

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

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

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

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

                                     A-I-10
<PAGE>

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

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

     A waiver of an Indenture  Event of Default will  constitute a waiver of the
corresponding Event of Default hereunder.  Any required approval or direction of
Holders of the Capital  Securities may be given at a separate meeting of Holders
of the Capital Securities  convened for such purpose, at a meeting of all of the
Holders of the  Securities  in the Trust or  pursuant  to written  consent.  The
Institutional Trustee will cause a notice of any meeting at which Holders of the
Capital  Securities  are entitled to vote, or of any matter upon which action by
written  consent of such Holders is to be taken,  to be mailed to each Holder of
record of the Capital  Securities.  Each such  notice  will  include a statement
setting forth the following information (i) the date of such meeting or the date
by which  such  action  is to be taken,  (ii) a  description  of any  resolution
proposed for adoption at such meeting on which such Holders are entitled to vote
or of such matter upon which  written  consent is sought and (iii)  instructions
for the  delivery of proxies or  consents.  No vote or consent of the Holders of
the  Capital  Securities  will be  required  for the Trust to redeem  and cancel
Capital  Securities or to  distribute  the  Debentures  in  accordance  with the
Declaration and the terms of the Securities.

                                     A-I-11
<PAGE>

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

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

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

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

          (c)  Subject to  Section  6.7 of the  Declaration  and only after each
Event of Default (if any) with respect to the Capital Securities has been cured,
waived or otherwise  eliminated and subject to the requirements of the second to
last sentence of this paragraph, the Holders of a Majority in liquidation amount
of the Common  Securities,  voting  separately as a class,  may direct the time,
method,  and place of conducting any proceeding for any remedy  available to the
Institutional  Trustee,  or  exercising  any trust or power  conferred  upon the
Institutional  Trustee under the Declaration,  including (i) directing the time,
method,  place of  conducting  any  proceeding  for any remedy  available to the
Debenture  Trustee,  or exercising any trust or power conferred on the Debenture
Trustee  with respect to the  Debentures,  (ii) waiving any past default and its
consequences  that are waivable  under the  Indenture,  or (iii)  exercising any
right to rescind or annul a declaration that the principal of all the Debentures
shall be due and payable,  provided,  however,  that,  where a consent or action
under the Indenture would require a Super Majority,  the  Institutional  Trustee
may only give such  consent or take such action at the written  direction of the
Holders  of not less than the  proportion  in  liquidation  amount of the Common
Securities  which  the  relevant  Super  Majority  represents  of the  aggregate
principal  amount of the Debentures  outstanding.  Notwithstanding  this Section
6(c),  the  Institutional   Trustee  shall  not  revoke  any  action  previously
authorized  or  approved  by a vote or  consent of the  Holders  of the  Capital
Securities.  Other than with respect to directing the time,  method and place of
conducting any proceeding for any remedy available to the Institutional  Trustee
or the Debenture Trustee as set forth above, the Institutional Trustee shall not
take any  action  described  in clause  (i),  (ii) or (iii)  above,  unless  the
Institutional  Trustee has obtained an opinion of tax counsel to the effect that
for the  purposes  of United  States  federal  income  tax the Trust will not be
classified  as other  than a grantor  trust on account  of such  action.  If the
Institutional Trustee fails to enforce its rights under the Declaration,  to the
fullest  extent  permitted  by law  any  Holder  of the  Common  Securities  may
institute  a legal  proceeding  directly  against  any  Person  to  enforce  the
Institutional Trustee's rights under the Declaration,  without first instituting
a legal proceeding against the Institutional Trustee or any other Person.

                                     A-I-12
<PAGE>

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

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

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

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

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

                                     A-I-13
<PAGE>

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

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

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

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

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

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

                                     A-I-14
<PAGE>

                                   EXHIBIT A-1

                      FORM OF CAPITAL SECURITY CERTIFICATE

                           [FORM OF FACE OF SECURITY]

     THIS SECURITY HAS NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED  (THE  "SECURITIES  ACT"),  OR ANY  STATE  SECURITIES  LAWS OR ANY OTHER
APPLICABLE   SECURITIES  LAWS.   NEITHER  THIS  SECURITY  NOR  ANY  INTEREST  OR
PARTICIPATION  HEREIN MAY BE REOFFERED,  SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH  TRANSACTION  IS EXEMPT  FROM,  OR NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT.  THE  HOLDER  OF  THIS  SECURITY  BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE  DEBENTURE  ISSUER OR THE TRUST,  (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A"),  TO A PERSON THE HOLDER  REASONABLY  BELIEVES IS A
"QUALIFIED  INSTITUTIONAL  BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,  (C) PURSUANT
TO AN EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT TO AN
"ACCREDITED  INVESTOR"  WITHIN THE MEANING OF SUBPARAGRAPH  (a) (1), (2), (3) OR
(7) OF RULE 501 UNDER THE  SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT,  OR FOR THE ACCOUNT OF AN  "ACCREDITED  INVESTOR,"  FOR  INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN  CONNECTION  WITH,  ANY
DISTRIBUTION  IN  VIOLATION  OF THE  SECURITIES  ACT, OR (D) PURSUANT TO ANOTHER
AVAILABLE  EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE DEBENTURE ISSUER'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER  PURSUANT  TO CLAUSES (C) OR (D) TO REQUIRE THE  DELIVERY OF AN
OPINION OF COUNSEL,  CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY
OF WHICH MAY BE OBTAINED FROM THE DEBENTURE  ISSUER OR THE TRUST.  THE HOLDER OF
THIS  SECURITY  BY ITS  ACCEPTANCE  HEREOF  AGREES  THAT IT WILL COMPLY WITH THE
FOREGOING RESTRICTIONS.

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

     THE  HOLDER  OF  THIS  SECURITY  BY  ITS  ACCEPTANCE  HEREOF  ALSO  AGREES,
REPRESENTS  AND  WARRANTS  THAT  IT  IS  NOT  AN  EMPLOYEE  BENEFIT,  INDIVIDUAL
RETIREMENT  ACCOUNT  OR  OTHER  PLAN OR  ARRANGEMENT  SUBJECT  TO TITLE I OF THE
EMPLOYEE  RETIREMENT  INCOME  SECURITY  ACT OF 1974,  AS AMENDED  ("ERISA"),  OR
SECTION 4975 OF THE  INTERNAL  REVENUE  CODE OF 1986,  AS AMENDED (THE  "CODE"),

                                      A-1-1
<PAGE>

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

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

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

                                      A-1-2

<PAGE>

Certificate Number [P-001]                   Number of Capital Securities 4,000

                    Certificate Evidencing Capital Securities

                                       of

                    Weststar Financial Services Corporation I

                                  TP Securities

                (liquidation amount $1,000 per Capital Security)

     Weststar Financial Services  Corporation I, a statutory trust created under
the laws of the State of Delaware (the  "Trust"),  hereby  certifies  that Bear,
Stearns Securities Corp. (the "Holder") is the registered owner of 4,000 capital
securities  of the Trust  representing  undivided  beneficial  interests  in the
assets of the Trust, designated the TP Securities (liquidation amount $1,000 per
Capital  Security) (the "Capital  Securities").  Subject to the  Declaration (as
defined below), the Capital Securities are transferable on the books and records
of the Trust, in person or by a duly authorized attorney, upon surrender of this
Certificate  duly  endorsed  and  in  proper  form  for  transfer.  The  Capital
Securities  represented  hereby are  issued  pursuant  to, and the  designation,
rights, privileges, restrictions,  preferences and other terms and provisions of
the Capital  Securities  shall in all respects be subject to, the  provisions of
the Amended and Restated  Declaration of Trust of the Trust, dated as of October
10, 2003,  among  Randall C. Hall and G. Gordon  Greenwood,  as  Administrators,
Wells Fargo  Delaware  Trust  Company,  as Delaware  Trustee,  Wells Fargo Bank,
National  Association,  as Institutional  Trustee,  Weststar  Financial Services
Corporation,  as  Sponsor,  and the  holders  from  time  to  time of  undivided
beneficial  interests in the assets of the Trust,  including the  designation of
the terms of the Capital  Securities as set forth in Annex I to the Declaration,
as the same may be amended  from time to time (the  "Declaration").  Capitalized
terms used  herein but not  defined  shall  have the  meaning  given them in the
Declaration.  The Holder is entitled to the  benefits  of the  Guarantee  to the
extent provided therein. The Sponsor will provide a copy of the Declaration, the
Guarantee,  and the Indenture to the Holder without charge upon written  request
to the Sponsor at its principal place of business.

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

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

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

                                      A-1-3
<PAGE>

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

                                      Weststar Financial Services Corporation I

                                      By:_______________________________________
                                          Name:_________________________________
                                          Title:  Administrator

                                      Dated:____________________________________

                          CERTIFICATE OF AUTHENTICATION

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

                                      WELLS FARGO BANK, NATIONAL
                                      ASSOCIATION,
                                      not in its individual capacity but solely
                                      as the Institutional Trustee

                                      By:_______________________________________
                                          Authorized Officer

                                      Dated_____________________________________

                                      A-1-4
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

     Distributions  payable  on  each  Capital  Security  will be  payable  at a
variable per annum rate of interest, reset quarterly, equal to LIBOR (as defined
in the  Declaration)  plus 3.15% (the "Coupon  Rate") of the stated  liquidation
amount of $1,000 per  Capital  Security,  such rate  being the rate of  interest
payable on the Debentures to be held by the Institutional Trustee. Except as set
forth below in respect of an Extension Period, Distributions in arrears for more
than one quarterly period will bear interest thereon compounded quarterly at the
applicable  Coupon Rate for each such quarterly  period (to the extent permitted
by  applicable  law).  The term  "Distributions"  as used herein  includes  cash
distributions,  any such compounded  distributions  and any Additional  Interest
payable on the Debentures  unless  otherwise  stated.  A Distribution is payable
only to the extent that payments are made in respect of the  Debentures  held by
the Institutional  Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor.  The amount of Distributions
payable  for any period  will be computed  for any full  quarterly  Distribution
period on the basis of a 360-day  year and the actual  number of days elapsed in
the relevant Distribution period.

     Except  as  otherwise   described  below,   Distributions  on  the  Capital
Securities  will be cumulative,  will accrue from the date of original  issuance
and will be  payable  quarterly  in  arrears  on  January 7, April 7, July 7 and
October 7 of each year,  commencing  on January 7, 2004 (each,  a  "Distribution
Payment Date").  Upon submission of Notice,  the Debenture  Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest payment period for up to 20 consecutive quarterly periods (each, an
"Extension Period") at any time and from time to time on the Debentures, subject
to the conditions  described  below,  during which Extension  Period no interest
shall be due and payable  (except any  Additional  Interest  that may be due and
payable).  During any Extension Period,  interest will continue to accrue on the
Debentures,  and interest on such accrued  interest  (such accrued  interest and
interest  thereon  referred to herein as "Deferred  Interest") will accrue at an
annual rate equal to the Coupon Rate in effect for each such  Extension  Period,
compounded  quarterly  from the date  such  Deferred  Interest  would  have been
payable were it not for the Extension Period, to the extent permitted by law. No
Extension  Period may end on a date other than a  Distribution  Payment Date. At
the end of any  such  Extension  Period,  the  Debenture  Issuer  shall  pay all
Deferred Interest then accrued and unpaid on the Debentures;  provided, however,
                                                              --------- --------
that no  Extension  Period may extend  beyond the  Maturity  Date.  Prior to the
termination  of any Extension  Period,  the Debenture  Issuer may further extend
such period,  provided,  that such period  together  with all such  previous and
              --------
further consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods,  or extend  beyond  the  Maturity  Date.  Upon the  termination  of any
Extension  Period and upon the payment of all Deferred  Interest,  the Debenture
Issuer  may  commence  a  new  Extension   Period,   subject  to  the  foregoing
requirements.  No interest or Deferred  Interest shall be due and payable during
an Extension  Period,  except at the end thereof,  but Deferred  Interest  shall
accrue upon each  installment of interest that would otherwise have been due and
payable  during  such  Extension  Period  until  such  installment  is paid.  If
Distributions are deferred, the Distributions due shall be paid on the date that
the related  Extension  Period  terminates to Holders of the  Securities as they
appear on the books and  records  of the Trust on the  record  date  immediately
preceding such date.  Distributions  on the Securities must be paid on the dates
payable  (after giving  effect to any  Extension  Period) to the extent that the
Trust has funds legally  available for the payment of such  distributions in the
Property  Account of the Trust.  The Trust's funds available for Distribution to

                                      A-1-5
<PAGE>

the  Holders of the  Securities  will be limited to payments  received  from the
Debenture  Issuer.  The payment of Distributions out of moneys held by the Trust
is guaranteed by the Guarantor pursuant to the Guarantee.

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

                                      A-1-6
<PAGE>

                                   ASSIGNMENT

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

_______________________

_______________________

_______________________

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

_______________________

_______________________

_______________________

(Insert address and zip code of assignee),

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

                           Date:________________________________

                           Signature:___________________________

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

                           Signature Guarantee:1________________________________

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

                                      A-1-7
<PAGE>

                                   EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

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

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

                                      A-2-1
<PAGE>

Certificate Number  [C-001]           Number of Common Securities 124

                    Certificate Evidencing Common Securities
                                       of
                    Weststar Financial Services Corporation I

     Weststar Financial Services  Corporation I, a statutory trust created under
the laws of the State of Delaware (the "Trust"),  hereby certifies that Weststar
Financial  Services  Corporation  (the "Holder") is the registered  owner of 124
common securities of the Trust representing  undivided  beneficial  interests in
the assets of the Trust  (liquidation  amount  $1,000  per Common  Security)(the
"Common  Securities").  The  Common  Securities  represented  hereby  are issued
pursuant to, and the designation, rights, privileges, restrictions,  preferences
and other terms and provisions of the Common Securities shall in all respects be
subject to, the  provisions of the Amended and Restated  Declaration of Trust of
the Trust,  dated as of October 10,  2003,  among  Randall C. Hall and G. Gordon
Greenwood,  as Administrators,  Wells Fargo Delaware Trust Company,  as Delaware
Trustee,  Wells Fargo Bank, National Association,  as Institutional Trustee, the
Holder,  as Sponsor,  and the holders from time to time of undivided  beneficial
interests in the assets of the Trust,  including the designation of the terms of
the Common  Securities as set forth in Annex I to the  Declaration,  as the same
may be amended  from time to time (the  "Declaration").  Capitalized  terms used
herein but not defined shall have the meaning given them in the Declaration. The
Sponsor will provide a copy of the  Declaration  and the Indenture to the Holder
without  charge upon written  request to the Sponsor at its  principal  place of
business.

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

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

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

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

                                      A-2-2

<PAGE>

     IN WITNESS  WHEREOF,  the Trust has executed this  certificate  October 10,
2003.

                                      Weststar Financial Services Corporation I

                                      By:_______________________________________
                                          Name:_________________________________
                                          Title:  Administrator

                                      A-2-3

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

     Distributions  payable on each Common  Security will be identical in amount
to the Distributions  payable on each Capital  Security,  which is at a variable
per annum rate of interest,  reset quarterly,  equal to LIBOR (as defined in the
Declaration) plus 3.15% (the "Coupon Rate") of the stated  liquidation amount of
$1,000 per Capital Security, such rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Except as set forth below in
respect of an  Extension  Period,  Distributions  in  arrears  for more than one
quarterly  period  will  bear  interest  thereon  compounded  quarterly  at  the
applicable  Coupon Rate for each such quarterly  period (to the extent permitted
by  applicable  law).  The term  "Distributions"  as used herein  includes  cash
distributions,  any such compounded  distributions  and any Additional  Interest
payable on the Debentures  unless  otherwise  stated.  A Distribution is payable
only to the extent that payments are made in respect of the  Debentures  held by
the Institutional  Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor.  The amount of Distributions
payable  for any period  will be computed  for any full  quarterly  Distribution
period on the basis of a 360-day  year and the actual  number of days elapsed in
the relevant Distribution period.

     Except as otherwise described below, Distributions on the Common Securities
will be cumulative,  will accrue from the date of original  issuance and will be
payable quarterly in arrears on January 7, April 7, July 7 and October 7 of each
year,  commencing on January 7, 2004 (each, a "Distribution Payment Date"). Upon
submission of Notice,  the Debenture Issuer has the right under the Indenture to
defer payments of interest on the  Debentures by extending the interest  payment
period for up to 20 consecutive  quarterly periods (each, an "Extension Period")
at any time and from time to time on the  Debentures,  subject to the conditions
described  below,  during which  Extension  Period no interest  shall be due and
payable (except any Additional Interest that may be due and payable). During any
Extension  Period,  interest  will  continue  to accrue on the  Debentures,  and
interest on such accrued  interest (such accrued  interest and interest  thereon
referred to herein as "Deferred  Interest")  will accrue at an annual rate equal
to the  Coupon  Rate in  effect  for  each  such  Extension  Period,  compounded
quarterly  from the date such Deferred  Interest would have been payable were it
not for the  Extension  Period,  to the extent  permitted  by law. No  Extension
Period may end on a date other than a  Distribution  Payment Date. At the end of
any such Extension Period,  the Debenture Issuer shall pay all Deferred Interest
then accrued and unpaid on the Debentures;  provided, however, that no Extension
Period may extend  beyond the Maturity  Date.  Prior to the  termination  of any
Extension Period, the Debenture Issuer may further extend such period, provided,
that  such  period  together  with all such  previous  and  further  consecutive
extensions thereof shall not exceed 20 consecutive  quarterly periods, or extend
beyond the Maturity Date. Upon the termination of any Extension  Period and upon
the payment of all Deferred  Interest,  the Debenture  Issuer may commence a new
Extension Period, subject to the foregoing requirements. No interest or Deferred
Interest shall be due and payable during an Extension Period,  except at the end
thereof,  but Deferred  Interest shall accrue upon each  installment of interest
that would  otherwise  have been due and payable  during such  Extension  Period
until such installment is paid. If Distributions are deferred, the Distributions
due shall be paid on the date that the related  Extension  Period  terminates to
Holders of the  Securities  as they appear on the books and records of the Trust
on the record date immediately preceding such date.

                                      A-2-4
<PAGE>

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

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

                                      A-2-5
<PAGE>

                                   ASSIGNMENT

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

_______________________

_______________________

_______________________

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

_______________________

_______________________

_______________________

(Insert address and zip code of assignee),

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

                           Date:________________________________

                          Signature:___________________________

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

                           Signature Guarantee:2 _______________________________

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

                                      A-2-6
<PAGE>

                                                                       EXHIBIT B

                         FORM OF TRANSFEREE CERTIFICATE
                  TO BE EXECUTED BY TRANSFEREES OTHER THAN QIBS

Weststar Financial Services Corporation
Weststar Financial Services Corporation I
79 Woodfin Place
Asheville, NC 28801

Re:  Purchase of $1,000 stated liquidation amount of TP Securities
     (the "Capital Securities") of Weststar Financial Services Corporation I
     -----------------------------------------------------------------------

Ladies and Gentlemen:

     In connection with our purchase of the Capital Securities we confirm that:

     1. We understand  that the TP  Securities  (the  "Capital  Securities")  of
Weststar Financial Services Corporation I (the "Trust") (including the guarantee
(the  "Guarantee") of Weststar  Financial  Services  Corporation (the "Company")
executed in connection  therewith) and the Junior  Subordinated  Debt Securities
due October 7, 2033 of the Company (the  "Subordinated  Debt  Securities")  (the
Capital Securities,  the Guarantee and the Subordinated Debt Securities together
being referred to herein as the "Offered Securities"),  have not been registered
under the Securities Act of 1933, as amended (the "Securities Act"), and may not
be offered or sold except as permitted in the  following  sentence.  We agree on
our own behalf and on behalf of any investor account for which we are purchasing
the Offered  Securities that, if we decide to offer, sell or otherwise  transfer
any such Offered Securities,  such offer, sale or transfer will be made only (a)
to the Company or the Trust, (b) pursuant to Rule 144A under the Securities Act,
to a person we reasonably believe is a qualified  institutional buyer under Rule
144A (a "QIB")  that  purchases  for its own account or for the account of a QIB
and to whom notice is given that the  transfer is being made in reliance on Rule
144A,  (c)  pursuant  to an  exemption  from  registration,  to  an  "accredited
investor"  within the meaning of  subparagraph  (a) (1), (2), (3) or (7) of Rule
501 under the  Securities Act that is acquiring  Offered  Securities for its own
account  or for the  account  of  such an  accredited  investor  for  investment
purposes and not with a view to, or for offer or sale in  connection  with,  any
distribution  thereof in  violation  of the  Securities  Act, or (d) pursuant to
another available exemption from the registration requirements of the Securities
Act, and in each of the foregoing cases in accordance with any applicable  state
securities  laws and any  requirements of law that govern the disposition of our
property.  The foregoing restrictions on resale will not apply subsequent to the
date on which, in the written opinion of counsel, the Capital Securities are not
"restricted securities" within the meaning of Rule 144 under the Securities Act.
If any resale or other transfer of the Offered Securities is proposed to be made
pursuant to clause (c) or (d) above,  the transferor shall deliver a letter from
the  transferee  substantially  in the form of this letter to the  Institutional
Trustee as  Transfer  Agent,  which  shall  provide as  applicable,  among other
things,  that the transferee is an "accredited  investor"  within the meaning of
subparagraph  (a)(1),  (2), (3) or (7) of Rule 501 under the Securities Act that
is acquiring such Securities for investment purposes and not for distribution in
violation of the  Securities  Act. We acknowledge on our behalf and on behalf of
any investor  account for which we are purchasing  Securities that the Trust and
the  Company  reserve  the  right  prior to any  offer,  sale or other  transfer
pursuant to clause (c) or (d) to require the delivery of any opinion of counsel,
certifications  and/or  other  information  satisfactory  to the  Trust  and the
Company.  We understand that the  certificates  for any Offered Security that we
receive will bear a legend substantially to the effect of the foregoing.

                                       B-1
<PAGE>

     2. We are an "accredited  investor"  within the meaning of subparagraph (a)
(1), (2), (3) or (7) of Rule 501 under the Securities Act purchasing for our own
account  or for  the  account  of  such  an  "accredited  investor,"  and we are
acquiring the Offered  Securities for investment  purposes and not with view to,
or for offer or sale in connection  with, any  distribution  in violation of the
Securities  Act, and we have such  knowledge  and  experience  in financial  and
business  matters  as to be capable  of  evaluating  the merits and risks of our
investment  in the Offered  Securities,  and we and any account for which we are
acting are each able to bear the economic risks of our or its investment.

     3. We are  acquiring  the Offered  Securities  purchased  by us for our own
account  (or for one or more  accounts  as to each of  which  we  exercise  sole
investment  discretion  and have  authority to make, and do make, the statements
contained in this letter) and not with a view to any distribution of the Offered
Securities,  subject, nevertheless, to the understanding that the disposition of
our property will at all times be and remain within our control.

     4. In the event that we purchase any Capital Securities or any Subordinated
Debt  Securities,  we will acquire such Capital  Securities  having an aggregate
stated  liquidation  amount of not less than $100,000 or such  Subordinated Debt
Securities having an aggregate principal amount not less than $100,000,  for our
own account and for each separate account for which we are acting.

     5. We  acknowledge  that we either  (A) are not a  fiduciary  of a pension,
profitsharing or other employee benefit plan subject to the Employee  Retirement
Income Security Act of 1974, as amended ("ERISA") (a "Plan"), or an entity whose
assets  include "plan  assets" by reason of any Plan's  investment in the entity
and are not purchasing the Offered Securities on behalf of or with "plan assets"
by reason of any Plan's  investment  in the entity  and are not  purchasing  the
Offered  Securities  on behalf of or with  "plan  assets" of any Plan or (B) are
eligible for the exemptive  relief  available under one or more of the following
prohibited  transaction class exemptions ("PTCEs") issued by the U.S. Department
of Labor: PTCE 96-23, 95-60, 91-38, 90-1 or 84-14.

     6. We acknowledge  that the Trust and the Company and others will rely upon
the  truth  and  accuracy  of the  foregoing  acknowledgments,  representations,
warranties  and  agreements  and  agree  that  if any  of  the  acknowledgments,
representations,  warranties  and  agreements  deemed  to have  been made by our
purchase of the Offered  Securities  are no longer  accurate,  we shall promptly
notify the Initial  Purchaser.  If we are acquiring any Offered  Securities as a
fiduciary or agent for one or more investor accounts,  we represent that we have
sole discretion with respect to each such investor account and that we have full
power to make the foregoing  acknowledgments,  representations  and agreement on
behalf of each such investor account.

                                       B-2
<PAGE>

                                      __________________________________________
                                      (Name of Purchaser)

                                      By:_______________________________________

                                      Date:_____________________________________

     Upon transfer,  the Offered  Securities  would be registered in the name of
the new beneficial owner as follows.

Name:_________________________________

Address:______________________________

Taxpayer ID Number:___________________

                                       B-3
<PAGE>

                                                                       EXHIBIT C

                         FORM OF TRANSFEROR CERTIFICATE
                             TO BE EXECUTED FOR QIBs

                                                                   ________, [ ]
Weststar Financial Services Corporation
Weststar Financial Services Corporation I
79 Woodfin Place
Asheville, NC 28801

Re:  Purchase of $1,000 stated liquidation amount of TP Securities
     (the "Capital Securities") of Weststar Financial Services Corporation I
     -----------------------------------------------------------------------

     Reference is hereby made to the Amended and Restated  Declaration  of Trust
of Weststar Financial Services  Corporation I, dated as of October 10, 2003 (the
"Declaration"),   among   Randall   C.  Hall  and  G.   Gordon   Greenwood,   as
Administrators,  Wells Fargo Delaware Trust Company, as Delaware Trustee,  Wells
Fargo Bank, National Association,  as Institutional Trustee,  Weststar Financial
Services Corporation, as Sponsor, and the holders from time to time of undivided
beneficial interests in the assets of Weststar Financial Services Corporation I.
Capitalized terms used but not defined herein shall have the meanings given them
in the Declaration.

     This  letter  relates  to  $[__________]  aggregate  liquidation  amount of
Capital  Securities  which  are held in the name of  [name of  transferor]  (the
"Transferor").

     In accordance with Section 8.2(b) of the  Declaration,  the Transferor does
hereby certify that such Capital  Securities are being transferred in accordance
with (i) the transfer  restrictions set forth in the Capital Securities and (ii)
Rule 144A under the  Securities  Act ("Rule  144A"),  to a  transferee  that the
Transferor  reasonably believes is purchasing the Capital Securities for its own
account  or an  account  with  respect to which the  transferee  exercises  sole
investment  discretion  and the  transferee and any such account is a "qualified
institutional  buyer" within the meaning of Rule 144A, in a transaction  meeting
the requirements of Rule 144A and in accordance with applicable  securities laws
of any state of the United States or any other jurisdiction.

     You are entitled to rely upon this letter and are irrevocably authorized to
produce  this  letter  or  a  copy  hereof  to  any  interested   party  in  any
administrative  or legal  proceeding  or official  inquiry  with  respect to the
matters covered hereby.

                                      __________________________________________
                                      (Name of Transferor)

                                       By:______________________________________
                                           Name:________________________________
                                           Title:_______________________________

                                       Date:____________________________________

                                       C-1
<PAGE>

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

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]