Document:

<PAGE>

                                                                     EXHIBIT 4.3

                       AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                      STERLING BANCSHARES CAPITAL TRUST II

                           DATED AS OF MARCH 21, 2001
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        Page
                                                                                                        ----
<S>                     <C>                                                                             <C>
ARTICLE I               INTERPRETATION AND DEFINITIONS........................................            1
 Section 1.1            Definitions...........................................................            1
ARTICLE II              TRUST INDENTURE ACT...................................................            7
 Section 2.1            Trust Indenture Act; Application......................................            7
 Section 2.2            Lists Of Holders Of Securities........................................            7
 Section 2.3            Reports By The Property Trustee.......................................            8
 Section 2.4            Periodic Reports To Property Trustee..................................            8
 Section 2.5            Evidence Of Compliance With Conditions Precedent......................            8
 Section 2.6            Events Of Default; Waiver.............................................            8
 Section 2.7            Event Of Default; Notice..............................................           11
ARTICLE III             ORGANIZATION..........................................................           12
 Section 3.1            Name..................................................................           12
 Section 3.2            Office................................................................           12
 Section 3.3            Purpose...............................................................           12
 Section 3.4            Authority.............................................................           12
 Section 3.5            Title To Property Of The Trust........................................           13
 Section 3.6            Powers And Duties Of The Administrative Trustees......................           13
 Section 3.7            Prohibition Of Actions By The Trust And The Trustees..................           15
 Section 3.8            Powers And Duties Of The Property Trustee.............................           16
 Section 3.9            Certain Duties And Responsibilities Of The Property Trustee...........           18
 Section 3.10           Certain Rights Of Property Trustee....................................           20
 Section 3.11           Delaware Trustee......................................................           22
 Section 3.12           Execution Of Documents................................................           22
 Section 3.13           Not Responsible For Recitals Or Issuance Of Securities................           22
 Section 3.14           Duration Of Trust.....................................................           22
 Section 3.15           Mergers...............................................................           23
ARTICLE IV              SPONSOR...............................................................           24
 Section 4.1            Sponsor's Purchase Of Common Securities...............................           24
 Section 4.2            Responsibilities Of The Sponsor.......................................           24
 Section 4.3            Right To Proceed......................................................           25
ARTICLE V               TRUSTEES..............................................................           25
 Section 5.1            Number Of Trustees: Appointment Of Co-Trustee.........................           25
 Section 5.2            Delaware Trustee......................................................           26
 Section 5.3            Property Trustee; Eligibility.........................................           27
 Section 5.4            Certain Qualifications Of Administrative Trustees And Delaware Trustee
                        Generally.............................................................           27
 Section 5.5            Administrative Trustees...............................................           28
 Section 5.6            Appointment, Removal And Resignation Of Trustees......................           28
 Section 5.7            Vacancies Among Trustees..............................................           30
 Section 5.8            Effect Of Vacancies...................................................           30
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                     <C>                                                                             <C>
 Section 5.9            Meetings..............................................................           30
 Section 5.10           Delegation Of Power...................................................           31
 Section 5.11           Merger, Conversion, Consolidation Or Succession To Business...........           31
ARTICLE VI              DISTRIBUTIONS.........................................................           31
 Section 6.1            Distributions.........................................................           31
ARTICLE VII             ISSUANCE OF SECURITIES................................................           31
 Section 7.1            General Provisions Regarding Securities...............................           31
 Section 7.2            Execution And Authentication..........................................           32
 Section 7.3            Form And Dating.......................................................           33
 Section 7.4            Registrar And Paying Agent............................................           34
 Section 7.5            Paying Agent To Hold Money In Trust...................................           34
 Section 7.6            Replacement Securities................................................           35
 Section 7.7            Outstanding Preferred Securities......................................           35
 Section 7.8            Preferred Securities In Treasury......................................           35
 Section 7.9            Temporary Securities..................................................           35
 Section 7.10           Cancellation..........................................................           36
 Section 7.11           Cusip Numbers.........................................................           37
ARTICLE VIII            TERMINATION OF TRUST..................................................           37
 Section 8.1            Termination Of Trust..................................................           37
ARTICLE IX              TRANSFER OF INTERESTS.................................................           38
 Section 9.1            Transfer Of Securities................................................           38
 Section 9.2            Transfer Procedures And Restrictions..................................           39
 Section 9.3            Deemed Security Holders...............................................           42
 Section 9.4            Book-Entry Interests..................................................           42
 Section 9.5            Notices To Clearing Agency............................................           43
 Section 9.6            Appointment Of Successor Clearing Agency..............................           43
ARTICLE X               LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES,
                        TRUSTEES OR OTHERS....................................................           43
 Section 10.1           Liability.............................................................           43
 Section 10.2           Exculpation...........................................................           44
 Section 10.3           Fiduciary Duty........................................................           44
 Section 10.4           Indemnification.......................................................           45
 Section 10.5           Outside Businesses....................................................           48
ARTICLE XI              ACCOUNTING............................................................           48
 Section 11.1           Fiscal Year...........................................................           48
 Section 11.2           Certain Accounting Matters............................................           48
 Section 11.3           Banking...............................................................           49
 Section 11.4           Withholding...........................................................           49
ARTICLE XII             AMENDMENTS AND MEETINGS...............................................           50
 Section 12.1           Amendments............................................................           50
 Section 12.2           Meetings Of The Holders; Action By Written Consent....................           51
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                     <C>                                                                             <C>
ARTICLE XIII            REPRESENTATIONS OF PROPERTY TRUSTEE AND
                        DELAWARE TRUSTEE......................................................           53
 Section 13.1           Representations And Warranties Of Property Trustee....................           53
 Section 13.2           Representations And Warranties Of Delaware Trustee....................           53
ARTICLE XIV             MISCELLANEOUS.........................................................           54
 Section 14.1           Notices...............................................................           54
 Section 14.2           Governing Law.........................................................           55
 Section 14.3           Intention Of The Parties..............................................           55
 Section 14.4           Headings..............................................................           56
 Section 14.5           Successors And Assigns................................................           56
 Section 14.6           Partial Enforceability................................................           56
 Section 14.7           Counterparts..........................................................           56

ANNEX I                 TERMS OF SECURITIES...................................................          I-1
EXHIBIT A-1             FORM OF PREFERRED SECURITY CERTIFICATE................................         A1-1
EXHIBIT A-2             FORM OF COMMON SECURITY CERTIFICATE...................................         A2-1
EXHIBIT B               SPECIMEN OF DEBENTURE.................................................          B-1
EXHIBIT C               UNDERWRITING AGREEMENT................................................          C-1
</TABLE>

                                      iii
<PAGE>

                             CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>

     Section of
 Trust Indenture Act                                       Section of
 of 1939, as amended                                      Declaration
-------------------                                       -----------
<S>                                                        <C>
310(a)..................................................   5.3
310(b)..................................................   5.3(c), 5.3(d)
311(a)..................................................   2.2(b)
311(b)..................................................   2.2(b)
312(a)..................................................   2.2(a)
312(b)..................................................   2.2(b)
313.....................................................   2.3
314(a)..................................................   2.4; 3.6(j)
314(c)..................................................   2.5
315(a)..................................................   3.9
315(b)..................................................   2.7(a)
315(c)..................................................   3.9(a)
315(d)..................................................   3.9(b)
316(a)..................................................   2.6
316(c)..................................................   3.6(e)
317(a)..................................................   3.8(e); 3.8(h)
317(b)..................................................   3.8(i); 7.5
</TABLE>
--------------
*  This Cross-Reference Table does not constitute part of the Declaration and
shall not affect the interpretation of any of its terms or provisions.

                                       iv
<PAGE>

                              AMENDED AND RESTATED

                              DECLARATION OF TRUST

                                       OF

                      STERLING BANCSHARES CAPITAL TRUST II

                                 MARCH 21, 2001

     AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated and
effective as of March 21, 2001, by the Trustees (as defined herein), the Sponsor
(as defined herein) and by the holders, from time to time, of undivided
beneficial interests in the Trust to be issued pursuant to this Declaration;

                                   RECITALS:

     WHEREAS, the Trustees (other than the Property Trustee (as defined herein))
and the Sponsor established Sterling Bancshares Capital Trust II (the "Trust"),
a trust formed under the Delaware Business Trust Act pursuant to a Declaration
of Trust dated as of February 13, 2001 (the "Original Declaration"), and a
Certificate of Trust filed with the Secretary of State of the State of Delaware
on February 13, 2001, 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 (each as hereinafter defined), and engaging in only those other
activities necessary, advisable or incidental thereto; and

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

     WHEREAS, all of the Trustees 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 business trust under the Business Trust Act and that
this Declaration constitute the governing instrument of such business trust, the
Trustees declare 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.

                                   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 have the respective meanings assigned to them in this Section
1.1;

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

     (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 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.

     "Administrative Trustee" has the meaning set forth in Section 5.1(b).

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

     "Agent" means any Paying Agent or Registrar.

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

     "Book-Entry Interest" means a beneficial interest in a Global Certificate
registered in the name of a Clearing Agency or its nominee, ownership and
transfers of which shall be maintained and made through book entries by a
Clearing Agency as described in Section 9.4.

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

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

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

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

     "Closing Time" means the "Closing Time" under the Underwriting Agreement.

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

                                       2
<PAGE>

     "Commission" means the United States Securities and Exchange Commission as
from time to time constituted, or if any time after the execution of this
Declaration such Commission is not existing and performing the duties now
assigned to it under applicable Federal securities laws, then the body
performing such duties at such time.

     "Common Securities" has the meaning specified in Section 7.1(a).

     "Common Securities Guarantee" means the guarantee agreement dated as of
March 21, 2001 of the Sponsor in respect of the Common Securities.

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

     "Corporate Trust Office" means the office of the Property Trustee at which
the corporate trust business of the Property Trustee shall, at any particular
time, be principally administered, which office at the date of execution of this
Agreement is located at Bankers Trust Company, Four Albany Street, New York, New
York 10006, Attention: Corporate Trust and Agency Services.

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

     "Debenture Issuer" means Sterling Bancshares, Inc., a Texas corporation, or
any successor entity resulting from any consolidation, amalgamation, merger or
other business combination, in its capacity as issuer of the Debentures under
the Indenture.

     "Debenture Trustee" means Bankers Trust Company, a New York banking
corporation, as trustee under the Indenture until a successor is appointed
thereunder, and thereafter means such successor trustee.

     "Debentures" means the 9.20% Junior Subordinated Deferrable Interest
Debentures due March 21, 2031 of the Debenture Issuer issued pursuant to the
Indenture.

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

     "Definitive Preferred Securities" shall have the meaning set forth in
Section 7.3(c).

     "Delaware Trustee" has the meaning set forth in Section 5.1.

     "Direct Action" shall have the meaning set forth in Section 3.8(e).

     "Distribution" means a distribution payable to Holders in accordance with
Section 6.1.

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

                                       3
<PAGE>

     "Event of Default" shall mean any event specified in Section 2.6(a),
continued for the period of time, if any, and after giving of the notice, if
any, therein designated.

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

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

     "Fiduciary Indemnified Person" has the meaning set forth in Section
10.4(b).

     "Fiscal Year" has the meaning set forth in Section 11.1.

     "Global Preferred Security" has the meaning set forth in Section 7.3(a).

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

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

     "Indenture" means the Indenture dated as of March 21, 2001, among the
Debenture Issuer and the Debenture Trustee, and any indenture supplemental
thereto pursuant to which the Debentures are issued.

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

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

     "Legal Action" has the meaning set forth in Section 3.6(g).

     "List of Holders" has the meaning set forth in Section 2.2(a).

     "Majority in liquidation amount" means, with respect to the Trust
Securities, except as provided in the terms of the Preferred Securities or by
the Trust Indenture Act, Holder(s) of outstanding Trust Securities voting
together as a single class or, as the context may require, Holders of
outstanding Preferred 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 of all outstanding Securities of the relevant
class.

     "Officers' Certificate" means, with respect to any Person, a certificate
signed by the Chairman, the Chief Executive Officer, the President, a Vice
President, the Chief Financial Officer, the Secretary or an Assistant Secretary
of such Person.  Any Officers' Certificate delivered by the Trust shall be
signed by at least one Administrative Trustee.  Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Declaration shall include:

                                       4
<PAGE>

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

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

     (c) 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

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

     "Opinion of Counsel" means a written opinion of counsel, who may be the
general counsel of the Sponsor.

     "Paying Agent" has the meaning specified in Section 7.4.

     "Payment Amount" has the meaning specified in Section 6.1.

     "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.

     "Preferred Securities" has the meaning specified in Section 7.1(a).

     "Preferred Securities Guarantee" means the guarantee agreement dated as of
March 21, 2001 of the Sponsor in respect of the Preferred Securities.

     "Preferred Security Beneficial Owner" means, with respect to a Book-Entry
Interest, a Person who is the beneficial owner of such Book-Entry Interest, as
reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly as a Clearing Agency
Participant or as an indirect participant, in each case in accordance with the
rules of such Clearing Agency).

     "Property Trustee" has the meaning set forth in Section 5.3(a).

     "Property Trustee Account" has the meaning set forth in Section 3.8(c)(i).

     "Prospectus" has the meaning set forth in Section 3.6(b)(i).

     "Quorum" means a majority of the Administrative Trustees or, if there are
only two Administrative Trustees, both of them, or, if there is only a single
Administrative Trustee, such Administrative Trustee.

     "Registrar" has the meaning set forth in Section 7.4.

     "Registration Statement" has the meaning set forth in Section 3.6(b)(i).

                                       5
<PAGE>

     "Related Party" means, with respect to the Sponsor, any direct or indirect
wholly owned subsidiary of the Sponsor or any other Person that owns, directly
or indirectly, 100% of the outstanding voting securities of the Sponsor.

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

     "Rule 3a-5" means Rule 3a-5 under the Investment Company Act, or any
successor rule or regulation.

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

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

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

     "Special Event" has the meaning set forth in Section 4(c) of Annex I
hereto.

     "Sponsor" means Sterling Bancshares, Inc., a Texas corporation, or any
successor entity resulting from any merger, consolidation, amalgamation or other
business combination, in its capacity as sponsor of the Trust.

     "Successor Delaware Trustee" has the meaning set forth in Section
5.6(b)(ii).

     "Successor Entity" has the meaning set forth in Section 3.15(b)(i).

     "Successor Property Trustee" has the meaning set forth in Section
3.8(f)(ii).

     "Super Majority" has the meaning set forth in Section 2.6(a)(ii).

     "10% in liquidation amount" means, with respect to the Trust Securities,
except as provided in the terms of the Preferred Securities or by the Trust
Indenture Act, Holder(s) of outstanding Trust Securities voting together as a
single class or, as the context may require, Holders of outstanding Preferred
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 of all outstanding Securities of the relevant class.

     "Treasury Regulations" means the income tax regulations, including
temporary and proposed regulations, promulgated under the Code by the United
States Treasury, as such

                                       6
<PAGE>

regulations may be amended from time to time (including corresponding provisions
of succeeding regulations).

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

     "Trustee" or "Trustees" means each Person who has signed this Declaration
as a trustee, so long as such Person shall continue as a trustee in accordance
with the terms of this Declaration, 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.

     "Underwriting Agreement" means the Underwriting Agreement dated March 15,
2001,between the Sponsor, the Trust and the underwriters named therein for the
initial offering and sale of Preferred Securities, providing for the sale of the
Preferred Securities.

                                  ARTICLE II
                              TRUST INDENTURE ACT

SECTION 2.1  Trust Indenture Act; Application.

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

     (b) The Property Trustee shall be the only Trustee which is a Trustee for
the purposes of the Trust Indenture Act.

     (c)  If and to the extent that any provision of this Declaration limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control
and to such extent such provision shall be deemed appropriately modified or
amended.

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

SECTION 2.2  Lists of Holders of Securities.

     (a) Each of the Sponsor and the Administrative Trustees on behalf of the
Trust shall provide (or cause to be provided) the Property Trustee, unless the
Property Trustee is Registrar for the Securities, (i) not later than 14 days
after each record date for payment of Distributions, a list, in such form as the
Property Trustee may reasonably require, of the names and addresses of the
Holders ("List of Holders") as of such record date, provided that neither the
Sponsor nor the Administrative Trustees on behalf of the Trust shall be
obligated to provide such List of Holders at any time that the List of Holders
does not differ from the most recent List of Holders given to the Property
Trustee by or on behalf of the Sponsor and the Administrative Trustees on behalf
of

                                       7
<PAGE>

the Trust, and (ii) at any other time, not later than 30 days after receipt
by the Trust of a written request for a List of Holders as of a date no more
than 14 days before such List of Holders is given to the Property Trustee. The
Property Trustee shall preserve, in as current a form as is reasonably
practicable, all information contained in the Lists of Holders given to it or
which it receives in the capacity as Paying Agent (if acting in such capacity),
provided that the Property Trustee may destroy any List of Holders previously
given to it on receipt of a new List of Holders.

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

SECTION 2.3  Reports by the Property Trustee.

     Within 60 days after September 15 of each year, commencing September 15,
2001, the Property Trustee shall provide to the Holders of the Preferred
Securities such reports as are required by Section 313 of the Trust Indenture
Act, if any, in the form and in the manner provided by Section 313 of the Trust
Indenture Act.  The Property Trustee shall also comply with the requirements of
Section  313(d) of the Trust Indenture Act.

SECTION 2.4  Periodic Reports to Property Trustee.

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

SECTION 2.5  Evidence of Compliance with Conditions Precedent.

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

SECTION 2.6  Events of Default; Waiver.

     (a) One or more of the following events of default shall constitute an
Event of Default hereunder (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of an administrative or governmental body):

          (i) an Event of Default (as defined in the Indenture) that has
    occurred and is continuing in respect of the Debentures; or

          (ii) default in the payment of any Distribution (including Compounded
     Interest or Additional Sums, if any) when it becomes due and payable, and
     continuance of such default for a period of 30 days; provided, however,
     that a valid deferral of Distributions during an Extension Period (as
     defined in Section 2(c) of Annex I) in

                                       8
<PAGE>

     accordance with the terms of the Securities shall not constitute a default
     in the payment of Distributions for this purpose; or

          (iii) default by the Trust in the payment of all or any part of the
     liquidation amount any Security as and when the same shall become due and
     payable either at maturity, upon prepayment or redemption, by declaration
     of acceleration of maturity or otherwise; or

          (iv) default in the performance, or breach, of any covenant or
     warranty of the Trustees or the Trust in this Declaration (other than a
     covenant or warranty a default in whose performance or whose breach is
     elsewhere in this Section 2.6(a) specifically dealt with), and continuance
     of such default or breach for a period of 90 days after there has been
     given, by registered or certified mail, to the defaulting Trustee by the
     holders of at least 25% in aggregate liquidation amount of the outstanding
     securities a written notice specifying such default or breach and requiring
     it to be remedied and stating that such notice is a "Notice of Default"
     hereunder; or

          (v) a court having jurisdiction in the premises shall enter a decree
     or order for relief in respect of the Property Trustee in an involuntary
     case under any applicable bankruptcy, insolvency or other similar law now
     or hereafter in effect, or appointing a receiver, liquidator, assignee,
     custodian, trustee, sequestrator (or similar official) of the Property
     Trustee or for any substantial part of its property, or ordering the
     winding-up or liquidation of its affairs and such decree or order shall
     remain unstayed and in effect for a period of 90 consecutive days; or

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

     (b) The Holders of a Majority in liquidation amount of Preferred Securities
may, by vote, on behalf of the Holders of all of the Preferred Securities, waive
any past Event of Default in respect of the Preferred Securities and its
consequences, provided that, if the underlying Event of Default under the
Indenture:

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

          (ii) requires the consent or vote of greater than a majority in
     aggregate principal amount of the holders of the Debentures (a "Super
     Majority") to be waived under the Indenture, the Event of Default under the
     Declaration may only be waived by the vote of the Holders of at least the
     proportion in aggregate liquidation amount of the Preferred Securities that
     the relevant Super Majority represents of the aggregate principal amount of
     the Debentures outstanding; or

                                       9
<PAGE>

          (iii) requires the consent or vote of each holder of the Debentures to
     be waived under the Indenture, then the Event of Default under the
     Declaration may only be waived by each holder of the Preferred Securities.

The foregoing provisions of this Section 2.6(b) shall be in lieu of Section
316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of the
Trust Indenture Act is hereby expressly excluded from this Declaration and the
Securities, as permitted by the Trust Indenture Act.  Upon such waiver, any such
default shall cease to exist, and any Event of Default with respect to the
Preferred Securities arising therefrom shall be deemed to have been cured, for
every purpose of this Declaration, but no such waiver shall extend to any
subsequent or other default or an Event of Default with respect to the Preferred
Securities or impair any right consequent thereon.  Any waiver by the Holders of
the Preferred Securities of an Event of Default with respect to the Preferred
Securities shall also be deemed to constitute a waiver by the Holders of the
Common Securities of any such Event of Default with respect to the Common
Securities for all purposes of this Declaration without any further act, vote,
or consent of the Holders of the Common Securities.

     (c) The Holders of a Majority in liquidation amount of the Common
Securities may, by vote, on behalf of the Holders of all of the Common
Securities, waive any past Event of Default with respect to the Common
Securities and its consequences, provided that, if the underlying Event of
Default under the Indenture:

          (i) is not waivable under the Indenture, except where the Holders of
     the Common Securities are deemed to have waived such Event of Default under
     the Declaration as provided below in this Section 2.6(c), the Event of
     Default under the Declaration shall also not be waivable except to the
     extent so provided below in this Section 2.6(c); or

          (ii) requires the consent or vote of (A) a Super Majority to be
     waived, the Event of Default under the Declaration may only be waived by
     the vote of the Holders of at least the proportion in aggregate liquidation
     amount of the Common Securities that the relevant Super Majority represents
     of the aggregate principal amount of the Debentures outstanding or (B) each
     holder of the Debentures to be waived, then the Event of Default under the
     Declaration may only be waived by each Holder of the Preferred Securities,
     except where the Holders of the Common Securities are deemed to have waived
     such Event of Default under the Declaration as provided below in this
     Section 2.6(c);

provided further, the Holders of Common Securities will be deemed to have waived
any such Event of Default and all Events of Default with respect to the Common
Securities and their consequences if all Events of Default with respect to the
Preferred Securities have been cured, waived or otherwise eliminated, and until
such Events of Default have been so cured, waived or otherwise eliminated, the
Property Trustee will be deemed to be acting solely on behalf of the Holders of
the Preferred Securities and only the Holders of the Preferred Securities will
have the right to direct the Property Trustee in accordance with the terms of
the Securities.  If any Event of Default with respect to the Preferred
Securities is waived by the Holders of the Preferred Securities as provided in
this Declaration, the Holders of Common Securities agree that such waiver shall
also constitute the waiver of such Event of Default with respect to the Common

                                       10
<PAGE>

Securities for all purposes of this Declaration without any further act, vote or
consent of the Holders of the Common Securities.  The foregoing provisions of
this Section 2.6(c) shall be in lieu of Sections 316(a)(1)(A) and 316(a)(1)(B)
of the Trust Indenture Act and such Sections 316(a)(1)(A) and 316(a)(1)(B) of
the Trust Indenture Act are hereby expressly excluded from this Declaration and
the Securities, as permitted by the Trust Indenture Act.  Subject to the
foregoing provisions of this Section 2.6(c), upon such waiver, any such default
shall cease to exist and any Event of Default with respect to the Common
Securities arising therefrom shall be deemed to have been cured for every
purpose of this Declaration, but no such waiver shall extend to any subsequent
or other default or Event of Default with respect to the Common Securities or
impair any right consequent thereon.

     (d) A waiver of an Event of Default under the Indenture by the Property
Trustee, at the direction of the Holders of the Preferred Securities,
constitutes a waiver of the corresponding Event of Default under this
Declaration. The foregoing provisions of this Section 2.6(d) shall be in lieu of
Section 316(a)(1)(B) of the Trust Indenture Act and such Section 316(a)(1)(B) of
the Trust Indenture Act is hereby expressly excluded from this Declaration and
the Securities, as permitted by the Trust Indenture Act.

SECTION 2.7  Event of Default; Notice.

     (a) The Property Trustee shall, within 90 days after the occurrence of a
default actually known to a Responsible Officer, transmit by mail, first class
postage prepaid, to the Holders, notices of all defaults with respect to the
Securities actually known to a Responsible Officer, unless such defaults have
been cured before the giving of such notice (the term "default(s)" for the
purposes of this Section 2.7(a) and Section 2.7(b) being hereby defined to be an
Event of Default, not including any periods of grace provided for therein and
irrespective of the giving of any notice provided therein); provided that,
except for (i) a default in the payment of principal of or interest (including
Compounded Interest and Additional Sums (as such terms are defined in the
Indenture)), if any, on any of the Debentures, or (ii) a default under Section
2.6(a)(ii) and (iii) of this Declaration, the Property Trustee shall be
protected in withholding such notice if and so long as a Responsible Officer in
good faith determines that the withholding of such notice is in the interests of
the Holders.

     (b) The Property Trustee shall not be deemed to have knowledge of any
default except:

          (i) a default under Sections 5.1(a) (other than the payment of
     Compounded Interest and Additional Sums) and 5.1(b) of the Indenture;

          (ii) a default under Section 2.6(a)(ii) and (iii) of this Declaration;
     or

          (iii) any default as to which the Property Trustee shall have received
     written notice or of which a Responsible Officer charged with the
     administration of the Declaration shall have actual knowledge.

     (c)  Within five Business Days after the occurrence of any Event of Default
actually known to the Property Trustee, the Property Trustee shall transmit
notice of such Event of Default to the Holders of the Preferred Securities,
the Administrative Trustees and the Sponsor,

                                       11
<PAGE>

unless such Event of Default shall have been cured or waived. The Sponsor and
the Administrative Trustees shall file annually with the Property Trustee a
certificate as to whether or not they are in compliance with all the conditions
and covenants applicable to them under this Declaration.

                                  ARTICLE III
                                  ORGANIZATION

SECTION 3.1  Name.

     The Trust continued by this Declaration is named "Sterling Bancshares
Capital Trust II" as such name may be modified from time to time by the
Administrative Trustees following written notice to the Delaware Trustee, the
Property Trustee and the Holders.  The Trust's activities may be conducted under
the name of the Trust or any other name deemed advisable by the Administrative
Trustees.

SECTION 3.2  Office.

     The address of the principal office of the Trust is c/o Sterling
Bancshares, Inc., 15000 Northwest Freeway, Suite 200, Houston, Texas 77040.  On
10 Business Days' advance written notice to the Delaware Trustee, the Property
Trustee and the Holders of Securities, the Administrative Trustees may designate
another principal office.

SECTION 3.3  Purpose.

     The exclusive purposes and functions of the Trust are (a) to issue and sell
Securities, (b) use the proceeds from the sale of the Securities to acquire the
Debentures, and (c) except as otherwise limited herein, to engage in only those
other activities necessary, advisable or incidental thereto.  The Trust shall
not borrow money, issue debt or reinvest proceeds derived from investments,
mortgage or pledge any of its assets, or otherwise undertake (or permit to be
undertaken) any activity that would cause the Trust not to be classified for
United States Federal income tax purposes as a grantor trust.

SECTION 3.4  Authority.

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

                                       12
<PAGE>

SECTION 3.5  Title to Property of the Trust.

     Except as provided in Section 3.8 with respect to the Debentures and the
Property Trustee 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 3.6  Powers and Duties of the Administrative Trustees.

     The Administrative Trustees shall have the exclusive power, duty and
authority to cause the Trust to engage in the following activities:

     (a)  to issue and sell the Securities in accordance with this Declaration;
provided, however, that (i) the Trust may issue no more than one series of
Preferred Securities and no more than one series of Common Securities, (ii)
there shall be no interests in the Trust other than the Securities, and
(iii) the issuance of Securities shall be limited to a simultaneous
issuance of both Preferred Securities and Common Securities at the Closing
Time;

     (b) in connection with the issue and sale of the Preferred Securities at
the direction of the Sponsor, to:

          (i) prepare and execute, as necessary, a prospectus and prospectus
     supplement (the "Prospectus") in preliminary and final form prepared by the
     Sponsor, in relation to the offering and sale of Preferred Securities and
     to execute and file with the Commission a registration statement (the
     "Registration Statement"), including any amendments thereto, for the
     offering and sale of Preferred Securities;

          (ii) execute and file any documents prepared by the Sponsor, or take
     any acts as determined by the Sponsor to be necessary or appropriate in
     order to qualify or register all or part of the Preferred Securities for
     offer and sale in any State in which the Sponsor has determined to qualify
     or register such Preferred Securities for sale;

          (iii) execute and file an application, prepared by the Sponsor, to
     permit the Preferred Securities to trade or be quoted on or included in the
     Nasdaq National Market or any other automated quotation system or listed on
     any national securities exchange;

          (iv) execute and deliver letters, documents, or instruments with DTC
     and other Clearing Agencies relating to the Preferred Securities;

          (v) execute and file with the Commission a registration statement on
     Form 8-A, including any amendments thereto, prepared by the Sponsor,
     relating to the registration of the Preferred Securities under Section
     12(b) or (g) of the Exchange Act; and

          (vi) execute, enter into and perform the Trust's obligations under the
     Underwriting Agreement;

                                       13
<PAGE>

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

     (d) to give the Sponsor and the Property Trustee prompt written notice of
the occurrence of a Special Event;

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

     (f)  to take all actions and perform such duties as may be required of the
Administrative Trustees pursuant to the terms of the Securities;

     (g) to bring or defend, pay, collect, compromise, arbitrate, resort to
legal action, or otherwise adjust claims or demands of or against the Trust
("Legal Action"), unless pursuant to Section 3.8(e), the Property Trustee has
the exclusive power to bring such Legal Action;

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

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

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

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

     (l)  to act as, or appoint another Person to act as, Registrar for the
Securities or to appoint a Paying Agent for the Securities as provided in
Section 7.4 except for such time as such power to appoint a Paying Agent is
vested in the Property Trustee;

     (m) to give prompt written notice to the Property Trustee and to Holders 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;

     (n) 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 business trust under the laws of the
State of Delaware and of each other jurisdiction in which such existence is
necessary to protect the limited liability of the Holders or to enable the Trust
to effect the purposes for which the Trust was created;

                                       14
<PAGE>

     (o) to take any action, not inconsistent with this Declaration or with
applicable law, that the Administrative Trustees determine in their discretion
to be necessary or desirable in carrying out the activities of the Trust as set
out in this Section 3.6, including, but not limited to:

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

          (ii) causing the Trust to be classified for United States Federal
     income tax purposes as a grantor trust; and

          (iii) cooperating with the Debenture Issuer to ensure that the
     Debentures will be treated as indebtedness of the Debenture Issuer for
     United States Federal income tax purposes;

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

     (q) to execute all documents or instruments, perform all duties and powers,
and do all things for and on behalf of the Trust in all matters necessary or
incidental to the foregoing.

     The Administrative Trustees must exercise the powers set forth in this
Section 3.6 in a manner that is consistent with the purposes and functions of
the Trust set out in Section 3.3, and the Administrative Trustees shall not take
any action that is inconsistent with the purposes and functions of the Trust set
forth in Section 3.3.

     Subject to this Section 3.6, the Administrative Trustees shall have none of
the powers or the authority of the Property Trustee set forth in Section 3.8.

     Any expenses incurred by the Administrative Trustees pursuant to this
Section 3.6 shall be reimbursed by the Debenture Issuer.

SECTION 3.7  Prohibition of Actions by the Trust and the Trustees.

     (a) The Trust shall not, and the Trustees (including the Property Trustee
and the Delaware Trustee) shall cause the Trust not to engage in any activity
other than as required or authorized by this Declaration. The Trust shall not:

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

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

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

          (iv) make any investments other than investments represented by the
     Debentures;

                                       15
<PAGE>

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

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

          (vii)  incur any indebtedness for borrowed money;

          (viii) other than as provided in this Declaration or Annex I, (A)
     direct the time, method and place of conducting any proceeding with respect
     to any remedy available to the Debenture Trustee, or exercising any trust
     or power conferred upon the Debenture Trustee with respect to the
     Debentures, (B) waive any past default that is waivable under the
     Indenture, or (C) exercise any right to rescind or annul any declaration
     that the principal of all the Debentures shall be due and payable; or

          (ix) 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 an opinion of independent tax counsel experienced
     in such matters to the effect that such amendment, modification or
     termination will not cause more than an insubstantial risk that for United
     States Federal income tax purposes the Trust will not be classified as a
     grantor trust.

SECTION 3.8  Powers and Duties of the Property Trustee.

     (a) The legal title to the Debentures shall be owned by and held of record
in the name of the Property Trustee in trust for the benefit of the Holders. The
right, title and interest of the Property Trustee to the Debentures shall vest
automatically in each Person who may hereafter be appointed as Property Trustee
in accordance with Section 5.6. Such vesting and cessation of title shall be
effective whether or not conveyancing documents with regard to the Debentures
have been executed and delivered.

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

     (c)  The Property Trustee shall:

          (i) establish and maintain a segregated non-interest bearing trust
     account (the "Property Trustee Account") in the name of and under the
     exclusive control of the Property Trustee on behalf of the Holders and,
     upon the receipt of payments of funds made in respect of the Debentures
     held by the Property Trustee, deposit such funds into the Property Trustee
     Account and make payments or cause the Paying Agent to make payments to the
     Holders from the Property Trustee Account in accordance with Section 6.1.
     Funds in the Property Trustee Account shall be held uninvested until
     disbursed in accordance with this Declaration. The Property Trustee Account
     shall be an account that is maintained with a banking institution the
     rating on whose long-term unsecured indebtedness by a "nationally
     recognized statistical rating organization," as that term is

                                       16
<PAGE>

     defined for purposes of Rule 436(g)(2) under the Securities Act, is at
     least investment grade;

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

          (iii) upon written notice of distribution issued by the Administrative
     Trustees 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 upon the occurrence of certain
     events.

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

     (e) Subject to Section 3.9(a), the Property Trustee shall take any Legal
Action which arises out of or in connection with an Event of Default of which a
Responsible Officer has actual knowledge or the Property Trustee's duties and
obligations under this Declaration or the Trust Indenture Act and if the
Property Trustee shall have failed to take such Legal Action, the Holders of the
Preferred Securities may take such Legal Action, to the same extent as if such
Holders of Preferred Securities held an aggregate principal amount of Debentures
equal to the aggregate liquidation amount of such Preferred Securities, without
first proceeding against the Property Trustee or the Trust; 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 the principal of or
interest (including Compounded Interest and Additional Sums, if any) on the
Debentures on the date such principal or interest (including Compounded Interest
and Additional Sums, if any) is otherwise payable (or in the case of redemption,
on the redemption date), then a Holder of Preferred Securities may directly
institute a proceeding for enforcement of payment to such Holder of the
principal of or interest (including Compounded Interest and Additional Sums, if
any) on the Debentures having a principal amount equal to the aggregate
liquidation amount of the Preferred 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 Preferred
Securities to the extent of any payment made by the Debenture Issuer to such
Holder of Preferred Securities in such Direct Action. Except as provided in the
preceding sentences of this Section 3.8(e), the Holders of Preferred Securities
will not be able to exercise directly any other remedy available to the holders
of the Debentures.

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

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

          (ii) a Successor Property Trustee has been appointed and has accepted
     that appointment in accordance with Section 5.6 (a "Successor Property
     Trustee").

     (g) The Property Trustee shall have the legal power to exercise all of the
rights, powers and privileges of a holder of Debentures under the Indenture and,
if an Event of Default

                                       17
<PAGE>

actually known to a Responsible Officer occurs and is continuing, the Property
Trustee shall, for the benefit of Holders, enforce its rights as holder of the
Debentures subject to the rights of the Holders pursuant to the terms of such
Securities.

     (h) The Property Trustee shall be authorized to undertake any actions set
forth in Section 317(a) of the Trust Indenture Act.

     (i) For such time as the Property Trustee is the Paying Agent, the Property
Trustee may authorize one or more Persons to act as additional Paying Agents and
to pay Distributions, redemption payments or liquidation payments on behalf of
the Trust with respect to all Securities and any such Paying Agent shall comply
with Section 317(b) of the Trust Indenture Act. Any such additional Paying Agent
may be removed by the Property Trustee at any time the Property Trustee remains
as Paying Agent and a successor Paying Agent or additional Paying Agents may be
(but are not required to be) appointed at any time by the Property Trustee while
the Property Trustee is so acting as Paying Agent.

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

     (k) Subject to this Section 3.8, the Property Trustee shall have none of
the duties, liabilities, powers or the authority of the Administrative Trustees
set forth in Section 3.6.

     Notwithstanding anything expressed or implied to the contrary in this
Declaration or any Annex or Exhibit hereto, (i) the Property Trustee must
exercise the powers set forth in this Section 3.8 and in Sections 3.9 and 3.10
in a manner that is consistent with the purposes and functions of the Trust set
out in Section 3.3, (ii) the Property Trustee shall not take any action that is
inconsistent with the purposes and functions of the Trust set out in Section
3.3, and (iii) the Property Trustee shall not be bound, obligated or required to
take any action at the request or direction of any Holder pursuant to this
Declaration if such Holder shall not have made available to the Property
Trustee, security or indemnity reasonably acceptable to the Property Trustee
against the costs, expenses and liabilities (including fees and expenses of its
agents and counsel) which might be incurred by it in compliance with the written
request or direction.

SECTION 3.9  Certain Duties and Responsibilities of the Property Trustee.

     (a) The Property Trustee, before the occurrence of any Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this
Declaration and in the Securities and no implied covenants shall be read into
this Declaration against the Property Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.6) of which a
Responsible Officer has actual knowledge, the Property Trustee shall exercise
such of the rights and powers vested in it by this Declaration, and use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of his or her own affairs.

                                       18
<PAGE>

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

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

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

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

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

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

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

          (v) the Property Trustee's sole duty with respect to the custody, safe
     keeping and physical preservation of the Debentures and the Property
     Trustee Account shall be to deal with such property in a similar manner as
     the Property Trustee deals with similar

                                       19
<PAGE>

     property for its own account, subject to the protections and limitations on
     liability afforded to the Property Trustee under this Declaration and the
     Trust Indenture Act;

          (vi) the Property Trustee shall have no duty or liability for or with
     respect to the value, genuineness, existence or sufficiency of the
     Debentures or the payment of any taxes or assessments levied thereon or in
     connection therewith;

          (vii) the Property Trustee shall not be liable for any interest on any
     money received by it except as it may otherwise agree in writing with the
     Sponsor. Money held by the Property Trustee need not be segregated from
     other funds held by it except in relation to the Property Trustee Account
     maintained by the Property Trustee pursuant to Section 3.8(c)(i) and except
     to the extent otherwise required by law; and

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

SECTION 3.10  Certain Rights of Property Trustee.

     (a)  Subject to the provisions of Section 3.9:

          (i) the Property Trustee may conclusively rely and shall be fully
     protected in acting or refraining from acting upon any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, 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;

          (ii) any direction or act of the Sponsor or the Administrative
     Trustees contemplated by this Declaration may be sufficiently evidenced by
     an Officers' Certificate;

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

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

          (v) the Property Trustee may consult with counsel or other experts of
     its selection and the advice or opinion of such counsel and experts with
     respect to legal matters or advice within the scope of such experts' area
     of expertise 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 accordance with such advice or opinion, such counsel

                                       20
<PAGE>

     may be counsel to the Sponsor or any of its Affiliates, and may include any
     of its employees. The Property Trustee shall have the right at any time to
     seek instructions concerning the administration of this Declaration from
     any court of competent jurisdiction;

          (vi) the Property 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 Holder, unless such Holder shall have provided to the
     Property Trustee security and indemnity, reasonably satisfactory to the
     Property Trustee, against the costs, expenses (including reasonable
     attorneys' fees and expenses and the expenses of the Property Trustee's
     agents, nominees or custodians) and liabilities that might be incurred by
     it in complying with such request or direction, including such reasonable
     advances as may be requested by the Property Trustee provided, that,
     nothing contained in this Section 3.10(a)(vi) shall be taken to relieve the
     Property Trustee, upon the occurrence of an Event of Default, of its
     obligation to exercise the rights and powers vested in it by this
     Declaration;

          (vii) the Property Trustee shall not be bound to make any
     investigation into the facts or matters stated in any resolution,
     certificate, statement, instrument, opinion, report, notice, request,
     direction, consent, order, bond, debenture, note, other evidence of
     indebtedness or other paper or document, but the Property Trustee, in its
     discretion, may make such further inquiry or investigation into such facts
     or matters as it may determine in its sole discretion to be appropriate;

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

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

          (x) whenever in the administration of this Declaration the Property
     Trustee shall deem it desirable to receive instructions with respect to
     enforcing any remedy or right or taking any other action hereunder, the
     Property Trustee (i) may request instructions from the Holders which
     instructions may only be given by the Holders of the same proportion in
     liquidation amount of the Securities as would be entitled to direct the
     Property Trustee under the terms of the 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 protected in conclusively relying on or acting in or
     accordance with such instructions;

                                       21
<PAGE>

          (xi) except as otherwise expressly provided by this Declaration, the
     Property Trustee shall not be under any obligation to take any action that
     is discretionary under the provisions of this Declaration; and

          (xii) the Property Trustee shall not be liable for any action taken,
     suffered, or omitted to be taken by it in good faith, without negligence,
     and reasonably believed by it to be authorized or within the discretion or
     rights or powers conferred upon it by this Declaration.

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

SECTION 3.11  Delaware Trustee.

     Notwithstanding any other provision of this Declaration other than Section
5.2, the Delaware Trustee shall not be entitled to exercise any powers, nor
shall the Delaware Trustee have any of the duties and responsibilities of the
Administrative Trustees or the Property Trustee described in this Declaration.
Except as set forth in Section 5.2, the Delaware Trustee shall be a Trustee for
the sole and limited purpose of fulfilling the requirements of Section 3807 of
the Business Trust Act.  In the event the Delaware Trustee shall at any time be
required to take any action or perform any duty hereunder, the Delaware Trustee
shall be entitled to the benefits of Section 3.9(b)(ii)-(viii) and Section 3.10.

SECTION 3.12  Execution of Documents.

     Unless otherwise determined by the Administrative Trustees, and except as
otherwise required by the Business Trust Act, a majority of the Administrative
Trustees or, if there are only two, any Administrative Trustee or, if there is
only one, such Administrative Trustee is authorized to execute on behalf of the
Trust any documents that the Administrative Trustees have the power and
authority to execute pursuant to Section 3.6.

SECTION 3.13  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 or the Securities.

SECTION 3.14  Duration of Trust.

     The Trust, unless terminated pursuant to the provisions of Article VIII
hereof, shall continue in existence until 5:00 p.m., Houston, Texas time on the
thirtieth (30th) anniversary of the effective date of this Declaration.

                                       22
<PAGE>

SECTION 3.15  Mergers.

     (a) The Trust may not merge with or into, consolidate, amalgamate, or be
replaced by, or convey, transfer or lease its properties and assets as an
entirety or substantially as an entirety to any Person, except as described in
Sections 3.15(b) and (c).

     (b) The Trust may, at the request of the Sponsor, with the consent of the
Administrative Trustees or, if there are more than two, a majority of the
Administrative Trustees and without the consent of the Holders, the Delaware
Trustee or the Property Trustee, merge with or into, consolidate, amalgamate, 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)  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 long as the Successor Securities rank the same as the
          Securities rank with respect to Distributions and payments upon
          liquidation, redemption and otherwise;

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

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

          (iv) if the Preferred Securities (including any Successor Securities)
     are rated by any nationally recognized statistical rating organization
     prior to such transaction, such merger, consolidation, amalgamation,
     replacement, conveyance, transfer or lease does not cause the Preferred
     Securities (including any Successor Securities), or if the Debentures are
     so rated, the Debentures, to be downgraded by any nationally recognized
     statistical rating organization within 120 days after such transaction;

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

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

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

                                       23
<PAGE>

                (A) such merger, consolidation, amalgamation, replacement,
          conveyance, transfer or lease does not adversely affect the rights,
          preferences and privileges of the Holders (including the holders of
          any Successor Securities) in any material respect (other than with
          respect to any dilution of the Holders' interest 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 be treated as a grantor trust for United States federal
          income tax purposes;

          (viii) the Sponsor or any permitted successor or assignee owns all of
     the common securities of such Successor Entity and guarantees the
     obligations of such Successor Entity under the Successor Securities at
     least to the extent provided by the Preferred Securities Guarantee and the
     Common Securities Guarantee; and

          (ix) there shall have been furnished to the Property Trustee an
     Officer's Certificate and an Opinion of Counsel, each to the effect that
     all conditions precedent in this Declaration to such transaction have been
     satisfied.

    (c) Notwithstanding Section 3.15(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 the Successor Entity not
to be classified as a grantor trust for United States Federal income tax
purposes.

                                  ARTICLE IV
                                    SPONSOR

SECTION 4.1  Sponsor's Purchase of Common Securities.

     At the Closing Time, the Sponsor will purchase all of the Common Securities
then issued by the Trust, in an amount equal to at least 3% of the total capital
of the Trust, at the same time as the Preferred Securities are issued and sold
pursuant to the Underwriting Agreement.

SECTION 4.2  Responsibilities of the Sponsor.

     In connection with the issue and sale of the Preferred Securities, the
Sponsor shall have the exclusive right and responsibility to engage in the
following activities:

          (a) to prepare the Prospectus and Registration Statement for filing by
     the Trust with the Commission, including any amendments thereto;

                                       24
<PAGE>

          (b) to determine the states in which to take appropriate action to
     qualify or register for sale all or part of the Preferred 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;

          (c) if deemed necessary or advisable by the Sponsor, to prepare for
     filing by the Trust an application to permit the Preferred Securities to
     trade or be quoted on or included in the Nasdaq National Market or any
     other automated quotation system or listed on any national securities
     exchange;

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

          (e) to negotiate the terms of the Underwriting Agreement providing for
     the sale of the Preferred Securities.

SECTION 4.3  Right to Proceed.

     The Sponsor acknowledges the rights of the Holders of Preferred Securities,
in the event that a failure of the Trust to pay Distributions on the Preferred
Securities is attributable to the failure of the Debenture Issuer to pay
interest or principal on the Debentures, to institute a proceeding directly
against the Debenture Issuer for enforcement of its payment obligations on the
Debentures.

                                   ARTICLE V
                                    TRUSTEES

SECTION 5.1  Number of Trustees: Appointment of Co-Trustee.

     The number of Trustees initially shall be five (5), 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 Holders of a Majority in
     liquidation amount of the Common Securities voting as a class at a meeting
     of the Holders of the Common Securities or pursuant to written consent;

provided, however, that, the number of Trustees shall in no event be less than
two (2); provided further that (1) one Trustee, in the case of a natural person,
shall be a person who is a resident of the State of Delaware or that, if not a
natural person, is an entity which has its principal place of business in the
State of Delaware (the "Delaware Trustee"); (2) there shall be at least one
Trustee who is an officer of the Sponsor (an "Administrative Trustee"); and (3)
one Trustee shall be the Property Trustee for so long as this Declaration is
required to qualify as an indenture under the

                                       25
<PAGE>

Trust Indenture Act, and such Trustee may also serve as Delaware Trustee if it
meets the applicable requirements. Notwithstanding the above, unless an Event of
Default shall have occurred and be continuing, at any time or times, for the
purpose of meeting the legal requirements of the Trust Indenture Act or of any
jurisdiction in which any part of the Trust's property may at the time be
located, the Holders of a Majority in liquidation amount of the Common
Securities acting as a class at a meeting of the Holders of the Common
Securities or pursuant to written consent, and the Administrative Trustees shall
have power to appoint one or more Persons either to act as a co-trustee, jointly
with the Property Trustee, of all or any part of the Trust's property, or to act
as separate trustee of any such property, in either case with such powers as may
be provided in the instrument of appointment, and to vest in such Person or
Persons in such capacity any property, title, right or power deemed necessary or
desirable, subject to the provisions of this Declaration. In case an Event of
Default has occurred and is continuing, the Property Trustee alone shall have
power to make any such appointment of a co-trustee.

     Whenever in this Declaration it is provided that the Holders of a specified
percentage in aggregate liquidation amount of the Common Securities may take any
action (including the making of any demand or request, the giving of any notice,
consent or waiver or the taking of any other action), the fact that at the time
of taking any such action the holders of such specified percentage have joined
therein may be evidenced (a) by any instrument or any number of instruments of
similar tenor executed by such Holders in person or by agent or proxy appointed
in writing, or (b) by the record of such holders of Securities voting in favor
thereof at any meeting of such Holders duly called and held in accordance with
the provisions of Article VIII, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of such Holders.

SECTION 5.2  Delaware Trustee.

     If required by the Business Trust Act, the Delaware Trustee shall be:

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

          (b) if not a natural person, an entity which has its principal place
     of business in the State of Delaware, and otherwise meets the requirements
     of applicable law,

provided that, if the Property Trustee has its principal place of business in
the State of Delaware and otherwise meets the requirements of applicable law,
then the Property Trustee shall also be the Delaware Trustee and Section 3.11
shall have no application.

     The initial Delaware Trustee shall be:

          Bankers Trust (Delaware)
          1011 Centre Road
          Wilmington, Delaware 19805
          Attention: Corporate Trustee, Administration Department

                                       26
<PAGE>

SECTION 5.3  Property Trustee; Eligibility.

     (a)  There shall at all times be one Trustee (the "Property Trustee") which
shall act as Property Trustee which shall:

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

          (ii) be a corporation organized and doing business under the laws of
     the United States of America or any State or Territory thereof or of the
     District of Columbia, or a corporation or Person permitted by the
     Commission to act as an institutional trustee under the Trust Indenture
     Act, authorized under such laws to exercise corporate trust powers, having
     a combined capital and surplus of at least $50,000,000, and subject to
     supervision or examination by Federal, state, territorial or District of
     Columbia authority. If such corporation publishes reports of condition at
     least annually, pursuant to law or to the requirements of the supervising
     or examining authority referred to above, then for the purposes of this
     Section 5.3(a)(ii), the combined capital and surplus of such corporation
     shall be deemed to be its combined capital and surplus as set forth in its
     most recent report of condition so published.

     (b) If at any time the Property Trustee shall cease to be eligible to so
act under Section 5.3(a), the Property Trustee shall immediately resign in the
manner and with the effect set forth in Section 5.6(c).

     (c) If the Property Trustee has or shall acquire any "conflicting interest"
within the meaning of Section 310(b) of the Trust Indenture Act, the Property
Trustee and the Holder of the Common Securities (as if it were the obligor
referred to in Section 310(b) of the Trust Indenture Act) shall in all respects
comply with the provisions of Section 310(b) of the Trust Indenture Act.

     (d)  The Preferred Securities Guarantee shall be deemed to be specifically
described in this Declaration for purposes of clause (i) of the first
provision contained in Section 310(b) of the Trust Indenture Act.

     (e)  The initial Property Trustee shall be:

          Bankers Trust Company
          Four Albany Street
          New York, New York 10006
          Attention:  Corporate Trust and Agency Services

SECTION 5.4  Certain Qualifications of Administrative Trustees and Delaware
Trustee Generally.

     Each Administrative Trustee and the Delaware Trustee (unless the Property
Trustee also acts as Delaware Trustee) shall be either a natural person who is
at least 21 years of age or a legal entity that shall act through one or more
Authorized Officers.

                                       27
<PAGE>

SECTION 5.5  Administrative Trustees.

     The initial Administrative Trustees of the Trust as set forth in the
Original Declaration were:

          George Martinez
          J. Downey Bridgwater
          Michael A. Roy

     Since the date of the Original Declaration, Michael A. Roy has resigned as
Administrative Trustee and the Sponsor, pursuant to the terms of the Original
Declaration, has appointed Eugene S. Putnam, Jr. as an Administrative Trustee.

     (a) Except as expressly set forth in this Declaration and except if a
meeting of the Administrative Trustees is called with respect to any matter over
which the Administrative Trustees have power to act, any power of the
Administrative Trustees may be exercised by, or with the consent of, any one
such Administrative Trustee.

     (b) Unless otherwise determined by the Administrative Trustees, and except
as otherwise required by the Business Trust Act or applicable law, any
Administrative Trustee is authorized to execute on behalf of the Trust any
documents which the Administrative Trustees have the power and authority to
cause the Trust to execute pursuant to Section 3.6.

     (c) An Administrative Trustee may, by power of attorney consistent with
applicable law, delegate to any other natural person over the age of 21 his or
her power for the purposes of signing any documents which the Administrative
Trustees have power and authority to cause the Trust to execute pursuant to
Section 3.6.

SECTION 5.6  Appointment, Removal and Resignation of Trustees.

     (a) Subject to Section 5.6(b) and to Section 6(b) of Annex I hereto,
Trustees may be appointed or removed without cause at any time:

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

          (ii) unless an Event of Default shall have occurred and be continuing
     after the issuance of any Securities, by vote of the Holders of a Majority
     in liquidation amount of the Common Securities voting as a class at a
     meeting of the Holders of the Common Securities; and

          (iii) if an Event of Default shall have occurred and be continuing
     after the issuance of the Securities, with respect to the Property Trustee
     or the Delaware Trustee, by vote of Holders of a Majority in liquidation
     amount of the Preferred Securities voting as a class at a meeting of
     Holders of the Preferred Securities.

     (b)  (i)  The Trustee that acts as Property Trustee shall not be removed in
accordance with Section 5.6(a) until a Successor Property Trustee has been
appointed and has accepted such

                                       28
<PAGE>

appointment by written instrument executed by such Successor Property Trustee
and delivered to the Administrative Trustees and the Sponsor.

          (i)  The Trustee that acts as Delaware Trustee shall not be removed in
     accordance with Section 5.6(a) until a successor Trustee possessing the
     qualifications to act as Delaware Trustee under Sections 5.2 and 5.4 (a
     "Successor Delaware Trustee") has been appointed and has accepted such
     appointment by written instrument executed by such Successor Delaware
     Trustee and delivered to the Administrative Trustees and the Sponsor.

     (c) A Trustee appointed to office shall hold office until his successor
shall have been appointed or until his death, removal or resignation. Any
Trustee may resign from office (without need for prior or subsequent accounting)
by an instrument in writing signed by the Trustee and delivered to the Sponsor
and the Trust, which resignation shall take effect upon such delivery or upon
such later date as is specified therein; provided, however, that:

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

               (A) until a Successor Property Trustee has been appointed and has
          accepted such appointment by instrument executed by such Successor
          Property Trustee and delivered to the Trust, the Sponsor and the
          resigning Property Trustee; or

               (B) until the assets of the Trust have been completely liquidated
          and the proceeds thereof distributed to the Holders; and

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

     (d) The Holders of the Common Securities or, if an Event of Default shall
have occurred and be continuing after the issuance of the Securities, the
Holders of the Preferred Securities shall use their best efforts to promptly
appoint a Successor Delaware Trustee or Successor Property Trustee, as the case
may be, if the Property Trustee or the Delaware Trustee delivers an instrument
of resignation in accordance with this Section 5.6.

     (e) If no Successor Property Trustee or Successor Delaware Trustee shall
have been appointed and accepted appointment as provided in this Section 5.6
within 60 days after delivery of an instrument of resignation or removal, the
Property Trustee or Delaware Trustee resigning or being removed, as applicable,
may petition any court of competent jurisdiction for appointment of a Successor
Property Trustee or Successor Delaware Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper and prescribe, appoint a
Successor Property Trustee or Successor Delaware Trustee, as the case may be.

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

                                       29
<PAGE>

     (g) At the time of resignation or removal of the Property Trustee or the
Delaware Trustee, the Debenture Issuer shall pay to such Trustee any amounts
that may be owed to such Trustee pursuant to Section 10.4.

SECTION 5.7  Vacancies among Trustees.

     If a Trustee ceases to hold office for any reason and the number of
Trustees is not reduced pursuant to Section 5.1, or if the number of Trustees is
increased pursuant to Section 5.1, a vacancy shall occur.  A resolution
certifying the existence of such vacancy by the Administrative Trustees or, if
there are more than two, a majority of the Administrative Trustees shall be
conclusive evidence of the existence of such vacancy.  The vacancy shall be
filled with a Trustee appointed in accordance with Section 5.6.

SECTION 5.8  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.  Whenever a vacancy in
the number of Administrative Trustees shall occur, until such vacancy is filled
by the appointment of an Administrative Trustee in accordance with Section 5.6,
the Administrative Trustees in office, regardless of their number, shall have
all the powers granted to the Administrative Trustees and shall discharge all
the duties imposed upon the Administrative Trustees by this Declaration.

SECTION 5.9  Meetings.

     If there is more than one Administrative Trustee, meetings of the
Administrative Trustees shall be held from time to time upon the call of any
Administrative Trustee.  Regular meetings of the Administrative Trustees may be
held at a time and place fixed by resolution of the Administrative Trustees.
Notice of any in-person meetings of the Administrative Trustees shall be hand
delivered or otherwise delivered in writing (including by facsimile, with a hard
copy by overnight courier) not less than 24 hours before such meeting.  Notice
of any telephonic meetings of the Administrative Trustees or any committee
thereof shall be hand delivered or otherwise delivered in writing (including by
facsimile, with a hard copy by overnight courier) not less than 24 hours before
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 an Administrative Trustee at a meeting shall constitute a waiver
of notice of such meeting except where an Administrative Trustee attends a
meeting for the express purpose of objecting to the transaction of any activity
on the ground that the meeting has not been lawfully called or convened.  Unless
provided otherwise in this Declaration, any action of the Administrative
Trustees may be taken at a meeting by vote of a majority of the Administrative
Trustees present (whether in person or by telephone) and eligible to vote with
respect to such matter, provided that a Quorum is present, or without a meeting
by the unanimous written consent of the Administrative Trustees.  In the event
there is only one Administrative Trustee, any and all action of such
Administrative Trustee shall be evidenced by a written consent of such
Administrative Trustee.

                                       30
<PAGE>

SECTION 5.10  Delegation of Power.

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

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

SECTION 5.11  Merger, Conversion, Consolidation or Succession to Business.

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

                                  ARTICLE VI
                                 DISTRIBUTIONS

SECTION 6.1  Distributions.

     Holders shall receive Distributions in accordance with the applicable terms
of the relevant Holder's Securities.  If and to the extent that the Debenture
Issuer makes a payment of interest (including Compounded Interest and Additional
Sums, if any) or principal on the Debentures held by the Property Trustee or any
other payments with respect to the Debentures held by the Property Trustee (the
amount of any such payment being a "Payment Amount"), the Property Trustee shall
and is directed, to the extent funds are available for that purpose, to make a
distribution (a "Distribution") of the Payment Amount to Holders.

                                  ARTICLE VII
                             ISSUANCE OF SECURITIES

SECTION 7.1  General Provisions Regarding Securities.

     (a) The Administrative Trustees shall on behalf of the Trust issue one
class of Preferred Securities representing undivided beneficial interests in the
assets of the Trust having such terms as are set forth in Annex I (the
"Preferred Securities") and one class of common securities representing
undivided beneficial interests in the assets of the Trust having such terms

                                       31
<PAGE>

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
Preferred Securities and the Common Securities.

     (b) 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.

     (c) 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.

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

SECTION 7.2  Execution and Authentication.

     (a) The Securities shall be signed on behalf of the Trust by an
Administrative Trustee by manual or facsimile signature. In case any
Administrative Trustee of the Trust who shall have signed any of the Securities
shall cease to be such Administrative Trustee before the Securities so signed
shall be delivered by the Trust, such Securities nevertheless may be delivered
as though the person who signed such Securities had not ceased to be such
Administrative Trustee; and any Securities may be signed on behalf of the Trust
by such persons who, at the actual date of execution of such Security, shall be
the Administrative Trustees of the Trust, although at the date of the execution
and delivery of the Declaration any such person was not such a Administrative
Trustee.

     (b) One Administrative Trustee shall sign the Preferred Securities for the
Trust by manual or facsimile signature. Unless otherwise determined by the
Trust, such signature shall, in the case of Common Securities, be a manual
signature.

     A Preferred Security shall not be valid until authenticated by the manual
signature of an authorized officer of the Property Trustee.  The signature shall
be conclusive evidence that the Preferred Security has been authenticated under
this Declaration.

     Upon a written order of the Trust signed by one Administrative Trustee, the
Property Trustee shall authenticate the Preferred Securities for original issue.
The aggregate number of Preferred Securities outstanding at any time shall not
exceed the number set forth in the Terms in Annex I hereto except as provided in
Section 7.6.

     The Property Trustee may appoint an authenticating agent acceptable to the
Trust to authenticate Preferred Securities.  An authenticating agent may
authenticate Preferred Securities whenever the Property Trustee may do so.  Each
reference in this Declaration to authentication by the Property Trustee includes
authentication by such agent. An authenticating agent has the same rights as the
Property Trustee to deal with the Sponsor or an Affiliate.

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<PAGE>

SECTION 7.3  Form and Dating.

     The Preferred Securities and the Property Trustee's certificate of
authentication 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 representing the Securities may be printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Administrative Trustees, as evidenced by their execution thereof.  The
Securities may have letters, CUSIP or other 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 Trust).  The Trust at the direction of the Sponsor shall furnish any such
legend not contained in Exhibit A-1 to the Property Trustee in writing.  Each
Preferred 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 Property Trustee and the Sponsor, by their
execution and delivery of this Declaration, expressly agree to such terms and
provisions and to be bound thereby.

     (a) Global Securities. Securities shall be issued in the form of one or
more permanent global Securities in definitive, fully registered form without
distribution coupons with the appropriate global legends set forth in Exhibit A-
1 hereto (a "Global Preferred Security"), which shall be deposited on behalf of
the purchasers of the Preferred Securities represented thereby with the Property
Trustee, at its New York office, as custodian for the Clearing Agency, and
registered in the name of the Clearing Agency or a nominee of the Clearing
Agency, duly executed by the Trust and authenticated by the Property Trustee as
hereinafter provided. The number of Preferred Securities represented by a Global
Preferred Security may from time to time be increased or decreased by
adjustments made on the records of the Property Trustee and the Clearing Agency
or its nominee as hereinafter provided.

     (b) Book-Entry Provisions. This Section 7.3(b) shall apply only to the
Global Preferred Securities and such other Preferred Securities in global form
as may be authorized by the Trust to be deposited with or on behalf of the
Clearing Agency.

     The Trust shall execute and the Property Trustee shall, in accordance with
this Section 7.3, authenticate and make available for delivery initially one or
more Global Preferred Securities that (i) shall be registered in the name of
Cede & Co. or other nominee of such Clearing Agency and (ii) shall be delivered
by the Trustee to such Clearing Agency or pursuant to such Clearing Agency's
written instructions or held by the Property Trustee as custodian for the
Clearing Agency.

     Members of, or participants in, the Clearing Agency ("Participants") shall
have no rights under this Declaration with respect to any Global Preferred
Security held on their behalf by the Clearing Agency or by the Property Trustee
as the custodian of the Clearing Agency or under such Global Preferred Security,
and the Clearing Agency may be treated by the Trust, the Property Trustee and
any agent of the Trust or the Property Trustee as the absolute owner of such
Global Preferred Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Trust, the Property Trustee or any
agent of the Trust or the Property

                                       33
<PAGE>

Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Clearing Agency or impair, as between the
Clearing Agency and its Participants, the operation of customary practices of
such Clearing Agency governing the exercise of the rights of a holder of a
beneficial interest in any Global Preferred Security.

     (c) Definitive Preferred Securities. Except as provided in Section 7.9 or
9.2(d)(i), owners of beneficial interests in a Global Preferred Security will
not be entitled to receive physical delivery of certificated Preferred
Securities ("Definitive Preferred Securities").

     (d) Authorized Denominations. The Preferred Securities are issuable only in
denominations having a liquidation preference of $25 and any integral multiple
thereof.

SECTION 7.4  Registrar and Paying Agent

     The Trust shall maintain in the Borough of Manhattan, The City of New York,
(i) an office or agency where Preferred Securities may be presented for
registration of transfer ("Registrar") and (ii) an office or agency where
Preferred Securities may be presented for payment ("Paying Agent").  The
Registrar shall keep a register of the Preferred Securities and of their
transfer.  The Trust may appoint the Registrar and the Paying Agent and may
appoint one or more co-registrars and one or more additional paying agents in
such other locations as it shall determine.  The term "Registrar" includes any
additional registrar and the term "Paying Agent" includes any additional paying
agent.  The Trust may change any Paying Agent, Registrar or co-registrar without
prior notice to any Holder.  The Paying Agent shall be permitted to resign as
Paying Agent upon 30 days' written notice to the Administrative Trustees.  The
Trust shall notify the Property Trustee of the name and address of any Agent not
a party to this Declaration.  If the Trust fails to appoint or maintain another
entity as Registrar or Paying Agent, the Property Trustee shall act as such.
The Trust or any of its Affiliates may act as Paying Agent or Registrar.  The
Trust shall act as Paying Agent and Registrar and Exchange Agent for the Common
Securities.

     The Trust initially appoints the Property Trustee as Registrar and Paying
Agent for the Preferred Securities.

SECTION 7.5  Paying Agent to Hold Money in Trust.

     The Trust shall require each Paying Agent other than the Property Trustee
to agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Property Trustee all money held by the Paying Agent for the
payment of liquidation amounts or Distributions, and will notify the Property
Trustee if there are insufficient funds for such purpose.  While any such
insufficiency continues, the Property Trustee may require a Paying Agent to pay
all money held by it to the Property Trustee.  The Trust at any time may require
a Paying Agent to pay all money held by it to the Property Trustee and to
account for any money disbursed by it.  Upon payment over to the Property
Trustee, the Paying Agent (if other than the Trust or an Affiliate of the Trust)
shall have no further liability for the money.  If the Trust or the Sponsor or
an Affiliate of the Trust or the Sponsor acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all
money held by it as Paying Agent.

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<PAGE>

SECTION 7.6  Replacement Securities.

     If a Holder claims that a Security owned by it has been lost, destroyed or
wrongfully taken or if such Security is mutilated and is surrendered to the
Trust or in the case of the Preferred Securities to the Property Trustee, the
Trust shall issue and the Property Trustee shall, upon written order of the
Trust, authenticate a replacement Security if the Property Trustee's and the
Trust's requirements, as the case may be, are met.  An indemnity bond must be
provided by the Holder which, in the judgment of the Property Trustee, is
sufficient to protect the Trustees, the Sponsor, the Trust or any authenticating
agent from any loss which any of them may suffer if a Security is replaced.  The
Trust may charge such Holder for its expenses in replacing a Security.

     Every replacement Security is an additional beneficial interest in the
Trust.

SECTION 7.7  Outstanding Preferred Securities.

     The Preferred Securities outstanding at any time are all the Preferred
Securities authenticated by the Property Trustee except for those cancelled by
it, those delivered to it for cancellation, and those described in this Section
as not outstanding.

     If a Preferred Security is replaced, paid or purchased pursuant to Section
7.6 hereof, it ceases to be outstanding unless the Property Trustee receives
proof satisfactory to it that the replaced, paid or purchased Preferred Security
is held by a bona fide purchaser.

     If Preferred Securities are considered paid in accordance with the terms of
this Declaration, they cease to be outstanding and Distributions on them shall
cease to accumulate.

     A Preferred Security does not cease to be outstanding because any of the
Trust, the Sponsor or an Affiliate of the Sponsor holds the Security.

SECTION 7.8  Preferred Securities in Treasury.

     In determining whether the Holders of the required amount of Securities
have concurred in any direction, waiver or consent, Preferred Securities owned
by the Trust, the Sponsor or an Affiliate of the Sponsor, as the case may be,
shall be disregarded and deemed not to be outstanding, except that for the
purposes of determining whether the Property Trustee shall be fully protected in
relying on any such direction, waiver or consent, only Securities which a
Responsible Officer of the Property Trustee actually knows are so owned shall be
so disregarded.

SECTION 7.9  Temporary Securities.

     (a) Until Definitive Securities are ready for delivery, the Trust may
prepare and, in the case of the Preferred Securities, the Property Trustee upon
written request of the Trust signed by any two Administrative Trustees shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of Definitive Securities but may have variations that the Trust
considers appropriate for temporary Securities. Without unreasonable delay, the
Trust shall prepare and, in the case of the Preferred Securities, the Property
Trustee upon written

                                       35
<PAGE>

request of the Trust signed by any two Administrative Trustees shall
authenticate Definitive Securities in exchange for temporary Securities.

     (b) A Global Preferred Security deposited with the Clearing Agency or with
the Property Trustee as custodian for the Clearing Agency pursuant to Section
7.3 shall be transferred to the beneficial owners thereof in the form of
certificated Preferred Securities only if such transfer complies with Section
9.2 and (i) the Clearing Agency notifies the Sponsor that it is unwilling or
unable to continue as Clearing Agency for such Global Preferred Security or if
at any time such Clearing Agency ceases to be a "clearing agency" registered
under the Exchange Act and a clearing agency is not appointed by the Sponsor
within 90 days of such notice, (ii) a Default or an Event of Default has
occurred and is continuing or (iii) the Trust at its sole discretion elects to
cause the issuance of certificated Preferred Securities.

     (c) Any Global Preferred Security that is transferable to the beneficial
owners thereof in the form of certificated Preferred Securities pursuant to this
Section 7.9 shall be surrendered by the Clearing Agency to the Property Trustee
located in the Borough of Manhattan, The City of New York, to be so transferred,
in whole or from time to time in part, without charge, and the Property Trustee
shall authenticate and make available for delivery, upon such transfer of each
portion of such Global Preferred Security, an equal aggregate liquidation amount
of Securities of authorized denominations in the form of certificated Preferred
Securities. Any portion of a Global Preferred Security transferred pursuant to
this Section shall be registered in such names as the Clearing Agency shall
direct. Any Preferred Security in the form of certificated Preferred Securities
delivered in exchange for an interest in the Restricted Global Preferred
Security shall, except as otherwise provided by Sections 7.3 and 9.1, bear the
Restricted Securities Legend set forth in Exhibit A-1 hereto.

     (d) Subject to the provisions of Section 7.9(c), the Holder of a Global
Preferred Security may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through Participants,
to take any action which such Holder is entitled to take under this Declaration
or the Securities.

     (e) In the event of the occurrence of any of the events specified in
Section 7.9(b), the Trust will promptly make available to the Property Trustee a
reasonable supply of certificated Preferred Securities in fully registered form
without distribution coupons.

SECTION 7.10  Cancellation.

     The Trust any time may deliver Preferred Securities to the Property Trustee
for cancellation.  The Registrar and Paying Agent shall forward to the Property
Trustee any Preferred Securities surrendered to them for registration of
transfer, redemption or payment.  The Property Trustee shall promptly cancel all
Preferred Securities, surrendered for registration of transfer, redemption,
exchange, payment, replacement or cancellation and shall dispose of cancelled
Preferred Securities in accordance with its customary procedures unless the
Trust otherwise directs.  The Trust may not issue new Preferred Securities to
replace Preferred Securities that it has paid or that have been delivered to the
Property Trustee for cancellation or that any Holder has exchanged.

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<PAGE>

SECTION 7.11  CUSIP Numbers.

     The Trust in issuing the Preferred Securities may use "CUSIP" numbers (if
then generally in use), and, if so, the Property Trustee shall use "CUSIP"
numbers in notices of redemption as a convenience to Holders of Preferred
Securities; provided that, any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Preferred
Securities or as contained in any notice of a redemption and that reliance may
be placed only on the other identification numbers printed on the Preferred
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers.  The Sponsor will promptly notify the Property Trustee
of any change in the CUSIP numbers.

                                 ARTICLE VIII
                              TERMINATION OF TRUST

SECTION 8.1  Termination of Trust.

     (a)  The Trust shall automatically dissolve:

          (i)  upon the bankruptcy of the Sponsor;

          (ii) upon the filing of a certificate of dissolution or
     liquidation or its equivalent with respect to the Sponsor; or the
     revocation of the Sponsor's charter and the expiration of 90 days after
     the date of revocation without a reinstatement thereof;

          (iii) following the distribution of a Like Amount of the Debentures to
     the Holders, provided that, the Property Trustee has received written
     notice from the Sponsor directing the Property Trustee to terminate the
     Trust (which direction is optional, and except as otherwise expressly
     provided below, within the discretion of the Sponsor) and provided,
     further, that such direction and such distribution is conditioned on (a)
     the prior approval of the Federal Reserve Board if such approval is then
     required under applicable capital guidelines or policies of the Federal
     Reserve Board and the receipt of any other required regulatory approval,
     and (b) the Administrative Trustees' receipt of an opinion of an
     independent tax counsel experienced in such matters, which opinion may rely
     on published rulings of the Internal Revenue Service, to the effect that
     the Holders will not recognize any gain or loss for United States Federal
     income tax purposes as a result of the dissolution of the Trust and the
     distribution of Debentures;

          (iv) upon the entry of a decree of judicial dissolution of the Trust
     by a court of competent jurisdiction;

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

          (vi) the expiration of the term of the Trust provided in Section 3.14.

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<PAGE>

     (b) Upon the completion of winding up of the Trust, including the payment
or the making of reasonable provision for payment of all obligations of the
Trust in accordance with Section 3808(e) of the Business Trust Act, the
Administrative Trustees shall file a certificate of cancellation with the
Delaware Secretary of State in accordance with Section 3810 of the Business
Trust Act, at which time the Trust and this Declaration (other than Section 3.9
and Article X) shall terminate. The Administrative Trustees shall act as the
liquidators of the Trust and shall be responsible for taking all required
actions in connection with winding up the Trust.

     (c) The provisions of Section 3.9 and Article X shall survive the
termination of the Trust.

                                  ARTICLE IX
                             TRANSFER OF INTERESTS

SECTION 9.1  Transfer of Securities.

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

     (b) Subject to this Article IX, Preferred Securities may only be
transferred, in whole or in part, in accordance with the terms and conditions
set forth in this Declaration. Any transfer or purported transfer of any
Security not made in accordance with this Declaration shall be null and void.

     (c) For so long as the Trust Securities remain outstanding, the Sponsor
will covenant: (i) to directly or indirectly maintain 100% direct or indirect
ownership of the Common Securities of the Trust, provided that any permitted
successor of the Sponsor under the Indenture may succeed to the Sponsor's
ownership of such Common Securities, (ii) not to cause, as Sponsor of the Trust,
or to permit, as Holder of the Common Securities, the dissolution, winding up or
termination of the Trust, except in connection with a distribution of the
Debentures as provided in the Declaration and in connection with certain
mergers, consolidations or amalgamations permitted by this Declaration, (iii) to
use its reasonable efforts to cause the Trust (a) to remain a business trust,
except in connection with the distribution of Debentures to the Holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust
Securities, or certain mergers, consolidations or amalgamations, each as
permitted by this Declaration, and (b) to otherwise continue to be classified as
a grantor trust for United States Federal income tax purposes; (iv) to use its
reasonable efforts to cause each holder of the Common Securities to be treated
as owning an undivided beneficial interest in the Debentures, and (v) use
commercially reasonable efforts to maintain the eligibility of the Preferred
Securities for quotation or listing on any national securities exchange or other
organization on which the Preferred Securities are then quoted or listed
(including, if applicable, the Nasdaq National Market) and shall use
commercially reasonable efforts to keep the Preferred Securities so quoted or
listed for so long as the Preferred Securities remain outstanding.

                                       38
<PAGE>

     (d) The Administrative Trustees shall provide for the registration of
Preferred Securities, and the transfer thereof, which will be effected without
charge but only upon payment (with such indemnity as the Administrative Trustees
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
Preferred Securities, the Administrative Trustees shall cause one or more new
Preferred Securities to be issued in the name of the designated transferee or
transferees. Every Preferred Security surrendered for registration of transfer
shall be accompanied by a written instrument of transfer in form satisfactory to
the Administrative Trustees duly executed by the Holder or such Holder's
attorney duly authorized in writing. Each Preferred Security surrendered for
registration of transfer shall be canceled by the Property Trustee. A transferee
of a Preferred Security shall be entitled to the rights and subject to the
obligations of a Holder hereunder upon the receipt by such transferee of a
Preferred Security. By acceptance of a Preferred Security, each transferee shall
be deemed to have agreed to be bound by this Declaration.

SECTION 9.2  Transfer Procedures and Restrictions

     (a)  Transfer and Exchange of Definitive Preferred Securities. When
Definitive Preferred Securities are presented to the Registrar or co-Registrar:

          (i)  to register the transfer of such Definitive Preferred Securities;
     or

          (ii) to exchange such Definitive Preferred Securities which became
     mutilated, destroyed, defaced, stolen or lost, for an equal number of
     Definitive Preferred Securities,

the Registrar or co-Registrar shall register the transfer or make the exchange
as requested if its reasonable requirements for such transaction are met;
provided, however, that the Definitive Preferred 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 or co-Registrar, duly executed by the Holder thereof or his
attorney duly authorized in writing;

     (b) Restrictions on Transfer of a Definitive Preferred Security for a
Beneficial Interest in a Global Preferred Security. A Definitive Preferred
Security may not be exchanged for a beneficial interest in a Global Preferred
Security except upon satisfaction of the requirements set forth below. Upon
receipt by the Property Trustee of a Definitive Preferred Security, duly
endorsed or accompanied by appropriate instruments of transfer, in form
satisfactory to the Property Trustee, together with written instructions
directing the Property Trustee to make, or to direct the Clearing Agency to
make, an adjustment on its books and records with respect to the appropriate
Global Preferred Security to reflect an increase in the number of the Preferred
Securities represented by such Global Preferred Security, then the Property
Trustee shall cancel such Definitive Preferred Security and cause, or direct the
Clearing Agency to cause, the aggregate number of Preferred Securities
represented by the appropriate Global Preferred Security to be increased
accordingly. If no Global Preferred Securities are then outstanding, the Trust
shall issue and the Property Trustee shall authenticate, upon written order of
any Administrative Trustee, an appropriate number of Preferred Securities in
global form.

                                       39
<PAGE>

     (c) Transfer and Exchange of Global Preferred Securities. Subject to
Section 9.2(d), the transfer and exchange of Global Preferred Securities or
beneficial interests therein shall be effected through the Clearing Agency, in
accordance with this Declaration (including applicable restrictions on transfer
set forth herein, if any) and the procedures of the Clearing Agency therefor.

     (d)  Transfer of a Beneficial Interest in a Global Preferred Security for a
Definitive Preferred Security.

          (i) Any Person having a beneficial interest in a Global Preferred
     Security may upon request, but only upon 20 days prior notice to the
     Property Trustee, and only if accompanied by the information specified
     below, exchange such beneficial interest for a Definitive Preferred
     Security representing the same number of Preferred Securities. Upon receipt
     by the Property Trustee from the Clearing Agency or its nominee on behalf
     of any Person having a beneficial interest in a Global Preferred Security
     of written instructions or such other form of instructions as is customary
     for the Clearing Agency or the Person designated by the Clearing Agency as
     having such a beneficial interest in a Restricted Preferred Security and a
     certification from the transferor (in a form substantially similar to that
     attached hereto as the form of "Assignment" in Exhibit A-1) upon which the
     Property Trustee may conclusively rely (unless such instructions contain a
     manifest error, are not believed to be genuine or to have been presented by
     the proper party) which may be submitted by facsimile, then the Property
     Trustee will cause the aggregate number of Preferred Securities represented
     by Global Preferred Securities to be reduced on its books and records and,
     following such reduction, the Trust will execute and the Property Trustee,
     upon written receipt of a written order of the Trust signed by one
     Administrative Trustee, will authenticate and make available for delivery
     to the transferee a Definitive Preferred Security.

          (ii) Definitive Preferred Securities issued in exchange for a
     beneficial interest in a Global Preferred Security pursuant to this Section
     9.2(d) shall be registered in such names and in such authorized
     denominations as the Clearing Agency, pursuant to instructions from its
     Clearing Agency Participants or otherwise, shall instruct the Property
     Trustee in writing. The Property Trustee shall deliver such Preferred
     Securities to the Persons in whose names such Preferred Securities are so
     registered in accordance with such instructions of the Clearing Agency.

     (e) Restrictions on Transfer and Exchange of Global Preferred Securities.
Notwithstanding any other provisions of this Declaration (other than the
provisions set forth in subsection (f) of this Section 9.2), a Global Preferred
Security may not be transferred as a whole except by the Clearing Agency to a
nominee of the Clearing Agency or another nominee of the Clearing Agency or by
the Clearing Agency or any such nominee to a successor Clearing Agency or a
nominee of such successor Clearing Agency.

     (f)  Authentication of Definitive Preferred Securities. If at any time:

          (i)  there occurs a Default or an Event of Default which is
     continuing, or

                                       40
<PAGE>

          (ii) the Trust, in its sole discretion, notifies the Property Trustee
     in writing that it elects to cause the issuance of Definitive Preferred
     Securities under this Declaration,

then the Trust will execute, and the Property Trustee, upon receipt of a written
order of the Trust signed by one Administrative Trustee requesting the
authentication and delivery of Definitive Preferred Securities to the Persons
designated by the Trust, will authenticate and make available for delivery
Definitive Preferred Securities, equal in number to the number of Preferred
Securities represented by the Global Preferred Securities, in exchange for such
Global Preferred Securities.

(g)  Cancellation or Adjustment of Global Preferred Security.  At such time as
     all beneficial interests in a Global Preferred Security have either been
     exchanged for Definitive Preferred Securities to the extent permitted by
     this Declaration or redeemed, repurchased or canceled in accordance with
     the terms of this Declaration, such Global Preferred Security shall be
     canceled by the Property Trustee.  At any time prior to such cancellation,
     if any beneficial interest in a Global Preferred Security is exchanged for
     Definitive Preferred Securities, Preferred Securities represented by such
     Global Preferred Security shall be reduced and an adjustment shall be made
     on the books and records of the Clearing Agency and the Registrar to
     reflect such reduction.

(h)  Obligations with Respect to Transfers and Exchanges of Preferred
     Securities.

          (i) To permit registrations of transfers, the Trust shall execute and
     the Property Trustee shall authenticate Definitive Preferred Securities and
     Global Preferred Securities at the Registrar's or co-Registrar's request in
     accordance with the terms of this Declaration.

          (ii) Registrations of transfers will be effected without charge, but
     only upon payment (with such indemnity as the Trust or the Sponsor may
     require) in respect of any tax or other governmental charge that may be
     imposed in relation to it.

          (iii) The Registrar or co-Registrar shall not be required to register
     the transfer of or exchange of (a) Preferred Securities during a period
     beginning at the opening of business 15 days before the day of mailing of a
     notice of redemption or any notice of selection of Preferred Securities for
     redemption and ending at the close of business on the day of such mailing;
     or (b) any Preferred Security so selected for redemption in whole or in
     part, except the unredeemed portion of any Preferred Security being
     redeemed in part.

          (iv) Prior to the due presentation for registration of transfer of any
     Preferred Security, the Trust, the Property Trustee, the Paying Agent, the
     Registrar or any co-Registrar may deem and treat the Person in whose name a
     Preferred Security is registered as the absolute owner of such Preferred
     Security for the purpose of receiving Distributions on such Preferred
     Security and for all other purposes whatsoever, and none of the Trust, the
     Property Trustee, the Paying Agent, the Registrar or any co-Registrar shall
     be affected by notice to the contrary.

          (v) All Preferred Securities issued upon any registration of transfer
     pursuant to the terms of this Declaration shall evidence the same security
     and shall be entitled to

                                       41
<PAGE>

     the same benefits under this Declaration as the Preferred Securities
     surrendered upon such registration of transfer.

     (i)  No Obligation of the Property Trustee.

          (i) The Property Trustee shall have no responsibility or obligation to
     any beneficial owner of a Global Preferred Security, a Clearing Agency
     Participant in the Clearing Agency or other Person with respect to the
     accuracy of the records of the Clearing Agency or its nominee or of any
     Clearing Agency Participant thereof, with respect to any ownership interest
     in the Preferred Securities or with respect to the delivery to any Clearing
     Agency Participant, beneficial owner or other Person (other than the
     Clearing Agency) of any notice (including any notice of redemption) or the
     payment of any amount, under or with respect to such Preferred Securities.
     All notices and communications to be given to the Holders and all payments
     to be made to Holders under the Preferred Securities shall be given or made
     only to or upon the order of the registered Holders (which shall be the
     Clearing Agency or its nominee in the case of a Global Preferred Security).
     The rights of beneficial owners in any Global Preferred Security shall be
     exercised only through the Clearing Agency subject to the applicable rules
     and procedures of the Clearing Agency. The Property Trustee may
     conclusively rely and shall be fully protected in relying upon information
     furnished by the Clearing Agency or any agent thereof with respect to its
     Clearing Agency Participants and any beneficial owners.

          (ii) The Property Trustee and the Registrar shall have no obligation
     or duty to monitor, determine or inquire as to compliance with any
     restrictions on transfer imposed under this Declaration or under applicable
     law with respect to any transfer of any interest in any Preferred Security
     (including any transfers between or among Clearing Agency Participants or
     beneficial owners in any Global Preferred Security) other than to require
     delivery of such certificates and other documentation or evidence as are
     expressly required by, and to do so if and when expressly required by, the
     terms of this Declaration, and to examine the same to determine substantial
     compliance as to form with the express requirements hereof.

SECTION 9.3  Deemed Security Holders.

     The Trustees may treat the Person in whose name any Security shall be
registered on the books and records of the Trust as the sole owner of such
Security 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 Security on the part of any Person, whether
or not the Trust shall have actual or other notice thereof.

SECTION 9.4  Book-Entry Interests.

     Global Preferred Securities shall initially be registered on the books and
records of the Trust in the name of Cede & Co., the nominee of the Clearing
Agency, and no Preferred Security Beneficial Owner will receive a definitive
Preferred Security Certificate representing such Preferred Security Beneficial
Owner's interests in such Global Preferred Securities, except as

                                       42
<PAGE>

provided in Section 7.9 and Section 9.2. Unless and until definitive, fully
registered Preferred Securities certificates have been issued to the Preferred
Security Beneficial Owners pursuant to Section 7.9 and Section 9.2:

          (a) the provisions of this Section 9.4 shall be in full force and
     effect;

          (b) the Trust and the Trustees shall be entitled to deal with the
     Clearing Agency for all purposes of this Declaration (including the payment
     of Distributions on the Global Preferred Securities and receiving
     approvals, votes or consents hereunder) as the Holder of the Preferred
     Securities and the sole holder of the Global Certificates and shall have no
     obligation to the Preferred Security Beneficial Owners;

           (c) to the extent that the provisions of this Section 9.4 conflict
     with any other provisions of this Declaration, the provisions of this
     Section 9.4 shall control; and

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

SECTION 9.5  Notices to Clearing Agency.

     Whenever a notice or other communication to the Preferred Security Holders
is required under this Declaration, the Trustees shall give all such notices and
communications specified herein to be given to the Holders of Global Preferred
Securities to the Clearing Agency, and shall have no notice obligations to the
Preferred Security Beneficial Owners.

SECTION 9.6  Appointment of Successor Clearing Agency.

     If any Clearing Agency elects to discontinue its services as securities
depositary with respect to the Preferred Securities, the Administrative Trustees
may, in their sole discretion, appoint a successor Clearing Agency with respect
to such Preferred Securities.

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

SECTION 10.1  Liability.

     (a)  Except as expressly set forth in this Declaration, the Securities
Guarantees 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 which shall be made
     solely from assets of the Trust; and

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<PAGE>

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

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

     (c) Pursuant to Section 3803(a) of the Business Trust Act, the Holders
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.

SECTION 10.2  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, cost,
liability, 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 shall be liable for any such loss, cost,
liability, damage or claim incurred by reason of such Indemnified Person'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 who has been selected with reasonable care by or on behalf of the
Trust, including information, opinions, reports or statements as to the value
and amount of the assets, liabilities, profits, losses, or any other facts
pertinent to the existence and amount of assets from which Distributions to
Holders might properly be paid.

SECTION 10.3  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 Property Trustee under the Trust Indenture Act), are
agreed by the parties hereto to replace such other duties and liabilities of
such Indemnified Person.

     (b)  Unless otherwise expressly provided herein:

          (i) whenever a conflict of interest exists or arises between an
     Indemnified Person and any Covered Persons; or

          (ii) whenever this Declaration or any other agreement contemplated
     herein or therein provides that an Indemnified Person shall act in a manner
     that is, or provides terms that are, fair and reasonable to the Trust or
     any Holder of Securities,

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<PAGE>

the Indemnified Person shall resolve such conflict of interest, take such action
or provide such terms, considering in each case the relative interest of each
party (including its own interest) to such conflict, agreement, transaction or
situation and the benefits and burdens relating to such interests, any customary
or accepted industry practices, and any applicable generally accepted accounting
practices or principles.  In the absence of bad faith by the Indemnified Person,
the resolution, action or term so made, taken or provided by the Indemnified
Person shall not constitute a breach of this Declaration or any other agreement
contemplated herein or of any duty or obligation of the Indemnified Person at
law or in equity or otherwise.

     (c) 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.

SECTION 10.4  Indemnification.

          (a) (i) The Debenture Issuer shall indemnify, to the full extent
     permitted by law, any Company 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 he is or was a Company Indemnified Person against
     expenses (including attorneys' fees and expenses), judgments, fines and
     amounts paid in settlement actually and reasonably incurred by him in
     connection with such action, suit or proceeding if such Company Indemnified
     Person acted in good faith and in a manner he 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 his
     conduct was unlawful. The termination of any action, suit or proceeding by
     judgment, order, settlement, conviction, or upon a plea of nolo contendere
     or its equivalent, shall not, of itself, create a presumption that the
     Company Indemnified Person did not act in good faith and in a manner which
     he 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 his conduct was unlawful.

          (ii) The Debenture Issuer shall indemnify, to the full extent
     permitted by law, any Company 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 he is or was a Company Indemnified Person
     against expenses (including attorneys' fees and expenses) actually and
     reasonably incurred by him in connection with the defense or settlement of
     such action or suit if he acted in good faith and in a manner he reasonably
     believed to be in or

                                       45
<PAGE>

     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 Company 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 a Company 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 10.4(a), or in defense of any
     claim, issue or matter therein, he shall be indemnified, to the full extent
     permitted by law, against expenses (including attorneys' fees) actually and
     reasonably incurred by him in connection therewith.

          (iv) Any indemnification under paragraphs (i) and (ii) of this Section
     10.4(a) (unless ordered by a court) shall be made by the Debenture Issuer
     only as authorized in the specific case upon a determination that
     indemnification of the Company Indemnified Person is proper in the
     circumstances because he has met the applicable standard of conduct set
     forth in paragraphs (i) and (ii). Such determination shall be made (1) by
     the Administrative Trustees by a majority vote of a Quorum consisting of
     such Administrative Trustees who were not parties to such action, suit or
     proceeding, (2) if such a Quorum is not obtainable, or, even if obtainable,
     if a Quorum of disinterested Administrative Trustees so directs, by
     independent legal counsel in a written opinion, or (3) by the Common
     Security Holder of the Trust.

          (v) Expenses (including attorneys' fees and expenses) incurred by a
     Company Indemnified Person in defending a civil, criminal, administrative
     or investigative action, suit or proceeding referred to in paragraphs (i)
     and (ii) of this Section 10.4(a) shall be paid by the Debenture Issuer in
     advance of the final disposition of such action, suit or proceeding upon
     receipt of an undertaking by or on behalf of such Company Indemnified
     Person to repay such amount if it shall ultimately be determined that he is
     not entitled to be indemnified by the Debenture Issuer as authorized in
     this Section 10.4(a). Notwithstanding the foregoing, no advance shall be
     made by the Debenture Issuer if a determination is reasonably and promptly
     made (i) by the Administrative Trustees by a majority vote of a quorum of
     disinterested Administrative Trustees, (ii) if such a quorum is not
     obtainable, or, even if obtainable, if a quorum of disinterested
     Administrative Trustees so directs, by independent legal counsel in a
     written opinion or (iii) the Common Security Holder of the Trust, that,
     based upon the facts known to the Administrative Trustees, counsel or the
     Common Security Holder at the time such determination is made, such Company
     Indemnified Person acted in bad faith or in a manner that such person did
     not believe to be in or not opposed to the best interests of the Trust, or,
     with respect to any criminal proceeding, that such Company Indemnified
     Person believed or had reasonable cause to believe his conduct was
     unlawful. In no event shall any advance be made in instances where the
     Administrative Trustees, independent legal counsel or

                                       46
<PAGE>

     Common Security Holder reasonably determine that such person deliberately
     breached his duty to the Trust or its Common or Preferred Security Holders.

          (vi) The indemnification and advancement of expenses provided by, or
     granted pursuant to, the other paragraphs of this Section 10.4(a) 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 Debenture
     Issuer or Preferred Security Holders of the Trust or otherwise, both as to
     action in his official capacity and as to action in another capacity while
     holding such office. All rights to indemnification under this Section
     10.4(a) shall be deemed to be provided by a contract between the Debenture
     Issuer and each Company Indemnified Person who serves in such capacity at
     any time while this Section 10.4(a) is in effect. Any repeal or
     modification of this Section 10.4(a) shall not affect any rights or
     obligations then existing.

          (vii) The Debenture Issuer or the Trust may purchase and maintain
     insurance on behalf of any person who is or was a Company Indemnified
     Person against any liability asserted against him and incurred by him in
     any such capacity, or arising out of his status as such, whether or not the
     Debenture Issuer would have the power to indemnify him against such
     liability under the provisions of this Section 10.4(a).

          (viii) For purposes of this Section 10.4(a), 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 10.4(a) with respect to the
     resulting or surviving entity as he would have with respect to such
     constituent entity if its separate existence had continued.

          (ix) The indemnification and advancement of expenses provided by, or
     granted pursuant to, this Section 10.4(a) shall, unless otherwise provided
     when authorized or ratified, continue as to a person who has ceased to be a
     Company Indemnified Person and shall inure to the benefit of the heirs,
     executors and administrators of such a person.

     (b) The Debenture Issuer agrees to indemnify the (i) Property Trustee, (ii)
the Delaware Trustee, (iii) any Affiliate of the Property Trustee or the
Delaware Trustee, and (iv) any officers, directors, shareholders, members,
partners, employees, representatives, custodians, nominees or agents of the
Property Trustee or the Delaware Trustee (each of the Persons in (i) through
(iv) being referred to as a "Fiduciary Indemnified Person") for, and to hold
each Fiduciary Indemnified Person harmless against, any and all loss, liability,
damage, claim or expense including taxes (other than taxes based on the income
of such Fiduciary Indemnified Person) incurred without negligence or bad faith
on the part of such Fiduciary Indemnified Person, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees and
expenses) of defending against or investigating any claim or liability in
connection with the exercise or performance of any of the powers or duties of
such Fiduciary Indemnified Person hereunder.

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<PAGE>

The obligation to indemnify as set forth in this Section 10.4(b) shall survive
the resignation or removal of the Property Trustee or the Delaware Trustee and
the satisfaction and discharge of this Declaration.

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

SECTION 10.5  Outside Businesses.

     Any Covered Person, the Sponsor, the Delaware Trustee and the Property
Trustee may engage in or possess an interest in other business ventures of any
nature or description, independently or with others, similar or dissimilar to
the business of the Trust, and the Trust and the Holders 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.  No Covered Person, the Sponsor, the Delaware Trustee, or the Property
Trustee shall be obligated to present any particular investment or other
opportunity to the Trust even if such opportunity is of a character that, if
presented to the Trust, could be taken by the Trust, and any Covered Person, the
Sponsor, the Delaware Trustee and the Property Trustee shall have the right to
take for its own account (individually or as a partner or fiduciary) or to
recommend to others any such particular investment or other opportunity.  Any
Covered Person, the Delaware Trustee and the Property Trustee may engage or be
interested in any financial or other transaction with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of, securities or other obligations of
the Sponsor or its Affiliates.

                                  ARTICLE XI
                                  ACCOUNTING

SECTION 11.1  Fiscal Year.

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

SECTION 11.2  Certain Accounting Matters.

     (a) At all times during the existence of the Trust, the Administrative
Trustees shall keep, or cause to be kept, full books of account, records and
supporting documents, which shall reflect in reasonable detail each transaction
of the Trust. The books of account shall be maintained on the accrual method of
accounting, in accordance with generally accepted

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<PAGE>

accounting principles, consistently applied. The books of account and the
records of the Trust shall be examined by and reported upon as of the end of
each Fiscal Year of the Trust by a firm of independent certified public
accountants selected by the Administrative Trustees.

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

     (c) The Administrative Trustees shall cause to be duly prepared and filed
with the appropriate taxing authority, 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 Administrative Trustees on behalf of the Trust with any state or local
taxing authority.

SECTION 11.3  Banking.

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

SECTION 11.4  Withholding.

     The Trust and the Administrative Trustees shall comply with all withholding
requirements under United States Federal, state and local law. The Trust shall
request, and the Holders shall provide to the Trust, such forms or certificates
as are necessary to establish an exemption from withholding with respect to each
Holder, and any representations and forms as shall reasonably be requested by
the Trust to assist it in determining the extent of, and in fulfilling, its
withholding obligations.  The Administrative Trustees 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 Trust is
required to withhold and pay over any amounts to any authority with respect to
Distributions or allocations to any Holder, the amount withheld shall be deemed
to be a Distribution in the amount of the withholding to the Holder.  In the
event of any claim of excess withholding, 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 Trust may reduce subsequent
Distributions by the amount of such withholding.

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<PAGE>

                                  ARTICLE XII
                            AMENDMENTS AND MEETINGS

SECTION 12.1  Amendments.

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

                (i) the Administrative Trustees (or if there are more than two
     Administrative Trustees, a majority of the Administrative Trustees);

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

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

        (b) No amendment shall be made, and any such purported amendment shall
be void and ineffective:

                (i) unless, in the case of any proposed amendment, the Property
     Trustee shall have first received 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);

                (ii) unless, in the case of any proposed amendment which affects
     the rights, powers, duties, obligations or immunities of the Property
     Trustee, the Property 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, if any, in
                this Declaration to the execution and delivery of such amendment
                have been satisfied,

     provided, however, that the Property Trustee shall not be required to sign
     any such amendment; and

                (iii)  to the extent the result of such amendment would be to:

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

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<PAGE>

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

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

        (c) At such time after the Trust has issued any Securities that remain
outstanding, any amendment that would adversely affect the rights, privileges or
preferences of any Holder may be effected only with such additional requirements
as may be set forth in the terms of such Securities;

        (d) Section 9.1(c) and this Section 12.1 shall not be amended without
the consent of all of the Holders;

        (e) Article IV shall not be amended without the consent of the Holders
of a Majority in liquidation amount of the Common Securities and;

        (f) The rights of the holders of the Common Securities under Article V
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 Common Securities; and

        (g) Notwithstanding Section 12.1(c), this Declaration may be amended
without the consent of the Holders to:

                (i) cure any ambiguity, correct or supplement any provision in
        this Declaration that may be inconsistent with any other provision of
        this Declaration or to make any other provisions with respect to matters
        or questions arising under this Declaration which shall not be
        inconsistent with the other provisions of the Declaration; and

                (ii) to modify, eliminate or add to any provisions of the
        Declaration to such extent as shall be necessary to ensure that the
        Trust will be classified for United States Federal income tax purposes
        as a grantor trust at all times that any Securities are outstanding or
        to ensure that the Trust will not be required to register as an
        Investment Company under the Investment Company Act.

provided, however, that in the case of clause (i), such action shall not
adversely affect in any material respect the interests of the Holders, and any
amendments of this Declaration shall become effective when notice thereof is
given to the Holders.

SECTION 12.2  Meetings of the Holders; Action by Written Consent.

        (a) Meetings of the Holders of any class of Securities may be called at
any time by the Administrative Trustees (or as provided in the terms of the
Securities) to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration, the terms of
the Securities or the rules of any stock exchange on which the Preferred
Securities are listed or admitted for trading. The Administrative Trustees shall
call a meeting of the Holders of such class if directed to do so by the Holders
of at least 10% in liquidation amount

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<PAGE>

of such class of Securities. Such direction shall be given by delivering to the
Administrative Trustees one or more notices in writing stating that the signing
Holders wish to call a meeting and indicating the general or specific purpose
for which the meeting is to be called. Any Holders calling a meeting shall
specify in writing the Security Certificates held by the Holders exercising the
right to call a meeting and only those Securities specified 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:

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

                (ii) each Holder may authorize any Person to act for it by proxy
        on all matters in which a Holder 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 eleven months from the
        date thereof unless otherwise provided in the proxy. Every proxy shall
        be revocable at the pleasure of the Holder 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
        were stockholders of a Delaware corporation;

                (iii) each meeting of the Holders shall be conducted by the
        Administrative Trustees or by such other Person that the Administrative
        Trustees may designate; and

                (iv) unless the Business Trust Act, this Declaration, the terms
        of the Securities, the Trust Indenture Act or the listing rules of the
        Nasdaq National Market, or any automated quotation system or any
        national securities exchange, as the case may be, on which the Preferred
        Securities are then listed or trading, otherwise provides, the
        Administrative Trustees, in their sole discretion, shall establish all
        other provisions relating to meetings of Holders, including notice of
        the time, place or purpose of any meeting at which any matter is to be
        voted on by any Holders, waiver of any such notice,

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<PAGE>

        action by consent without a meeting, the establishment of a record date,
        quorum requirements, voting in person or by proxy or any other matter
        with respect to the exercise of any such right to vote.

                                 ARTICLE XIII
            REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE

SECTION 13.1  Representations and Warranties of Property Trustee.

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

     (a) the Property Trustee is a New York banking corporation, a national
banking association or a bank or trust company organized under the laws of any
State of the United States or the District of Columbia, in any case with trust
powers and authority to execute and deliver, and to carry out and perform its
obligations under the terms of, this Declaration;

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

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

     (d) no consent, approval or authorization of, or registration with or
notice to, any New York, Texas or Delaware State or Federal banking authority is
required for the execution, delivery or performance by the Property Trustee of
this Declaration.

SECTION 13.2  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) The Delaware Trustee is duly organized, validly existing and in good
standing under the laws of the State of Delaware or the United States, with
trust power and authority to execute and deliver, and to carry out and perform
its obligations under the terms of, this Declaration;

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<PAGE>

     (b) 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 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 the enforcement of such remedies is considered in a proceeding in equity
or at law);

     (c) No consent, approval or authorization of, or registration with or
notice to, any Federal banking authority is required for the execution, delivery
or performance by the Delaware Trustee of this Declaration; and

     (d) The Delaware Trustee is a natural person who is a resident of the State
of Delaware or, if not a natural person, an entity which has its principal place
of business in the State of Delaware.

                                  ARTICLE XIV
                                 MISCELLANEOUS

SECTION 14.1  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 or
mailed by first class mail, overnight courier service or confirmed telecopy, as
follows:

     (a) if given to the Trust, in care of the Administrative Trustees at the
Trust's mailing address set forth below (or such other address as the Trust may
give notice of to the Property Trustee, the Delaware Trustee and the Holders):

          Sterling Bancshares Capital Trust II
          c/o Sterling Bancshares, Inc.
          15000 Northwest Freeway, Suite 200
          Houston, Texas  77040
          Attention:  J. Downey Bridgwater, Administrative Trustee
          Telecopy:  (713) 849-5498

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

                                       54
<PAGE>

          Bankers Trust (Delaware)
          1011 Centre Road, Suite 200
          Wilmington, Delaware 19805
          Attention: Corporate Trust Department
          Telecopy:  (302) 636-3222

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

          Bankers Trust Company
          Four Albany Street
          New York, New York 10006
          Attention:  Corporate Trust and Agency Services
          Telecopy:  (212) 250-6392 or
                     (212) 250-6961

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

          Sterling Bancshares, Inc.
          15000 Northwest Freeway, Suite 200
          Houston, Texas 77040
          Attention:  J. Downey Bridgwater
          Telecopy:  (713) 849-5498

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

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

SECTION 14.2  Governing Law.

     THIS DECLARATION AND THE RIGHTS OF THE PARTIES HEREUNDER SHALL BE GOVERNED
BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND ALL
RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO PRINCIPLES
OF CONFLICT OF LAWS.

SECTION 14.3  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.

                                       55
<PAGE>

SECTION 14.4  Headings.

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

SECTION 14.5  Successors and Assigns.

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

SECTION 14.6  Partial Enforceability.

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

SECTION 14.7  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 to one of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have the
same force and effect as though all of the signers had signed a single signature
page.

                  [Remainder of Page Intentionally Left Blank]

                                       56
<PAGE>

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

                              /s/ George Martinez
                              -------------------------------------------------
                              George Martinez, as Administrative Trustee

                              /s/ J. Downey Bridgwater
                              __________________________________________________
                              J. Downey Bridgwater, as Administrative Trustee

                              /s/ Eugene S. Putnam, Jr.
                              __________________________________________________
                              Eugene S. Putnam, Jr., as Administrative Trustee

                              BANKERS TRUST (DELAWARE), as Delaware Trustee

                                      /s/ Elizabeth B. Ferry
                              By: ______________________________________________
                              Name:   Elizabeth B. Ferry
                              Title:  Authorized Signatory

                              BANKERS TRUST COMPANY, as Property
                              Trustee

                                      /s/ Susan Johnson
                              By: ______________________________________________
                              Name:   Susan Johnson
                              Title:  Vice President

                              STERLING BANCSHARES, INC., as Sponsor and
                              Debenture Issuer

                                      /s/ George Martinez
                              By: ______________________________________________
                              Name:   George Martinez
                              Title:  Chairman

         [Signature Page to Amended and Restated Declaration of Trust]

                                       57
<PAGE>

                                    ANNEX I
                                   TERMS OF
                  9.20% CUMULATIVE TRUST PREFERRED SECURITIES
                            9.20% COMMON SECURITIES

     Pursuant to Section 7.1 of the Amended and Restated Declaration of Trust,
dated as of March 21, 2001 (as amended from time to time, the "Declaration"),
the designation, rights, privileges, restrictions, preferences and other terms
and provisions of the Securities are set out below (each capitalized term used
but not defined herein has the meaning set forth in the Declaration or, if not
defined in such Declaration, as defined in the Prospectus referred to below in
Section 2(c) of this Annex I):

     1.  Designation and Number.

     (a) Preferred Securities.  1,150,000 9.20% Cumulative Trust Preferred
Securities of the Trust with an aggregate liquidation amount with respect to the
assets of the Trust of $28,750,000 and each with a liquidation amount with
respect to the assets of the Trust of $25 per security, are hereby designated
for the purposes of identification only as Preferred Securities. The
certificates evidencing the Preferred 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 the Nasdaq National Market or any automated
quotation system or national securities exchange, as the case may be, on or in
which the Preferred Securities are listed, traded or quoted.

     (b) Common Securities.  35,567 Common Securities of the Trust with an
aggregate liquidation amount with respect to the assets of the Trust of $889,175
and each with a liquidation amount with respect to the assets of the Trust of
$25 per security, are hereby designated for the purposes of identification only
as Common Securities.  The certificates evidencing the Common Securities shall
be 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.

     2.  Distributions.

     (a) Distributions payable on each Security will be fixed at a rate per
annum of 9.20% (the "Coupon Rate") of the liquidation amount of $25 per Security
(the "Liquidation Amount"), such rate being equivalent to the rate of interest
payable on the Debentures to be held by the Property Trustee. Distributions in
arrears for more than one quarterly period will bear additional distributions
thereon compounded quarterly at the Coupon Rate (to the extent permitted by
applicable law). A Distribution is payable only to the extent that payments are
made in respect of the Debentures held by the Property Trustee and to the extent
the Property Trustee has funds on hand legally available therefor.

     (b) Distributions on the Securities will be cumulative, will accumulate
from the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from March 21, 2001, and will be payable quarterly
in arrears on March 31, June 30, September 30 and December 31 of each year,
commencing on June 30, 2001, except as otherwise described

                                      I-1
<PAGE>

below and on the Stated Maturity Date (each, a "Distribution Date").
Distributions will be computed on the basis of a 360-day year consisting of
twelve 30-day months and for any period less than a full calendar month on the
basis of the actual number of days elapsed in such month. As long as no Event of
Default has occurred and is continuing under the Indenture, the Debenture Issuer
has the right under the Indenture to defer payments of interest by extending the
interest payment period at any time and from time to time on the Debentures for
a period not exceeding 20 consecutive quarterly periods, including the first
such quarterly period during such period (each an "Extension Period"), during
which Extension Period no interest shall be due and payable on the Debentures,
provided that no Extension Period shall end on a date other than an Interest
Payment Date for the Debentures or extend beyond the Stated Maturity Date of the
Debentures. As a consequence of such deferral, Distributions will also be
deferred. Despite such deferral, Distributions will continue to accumulate with
interest thereon (to the extent permitted by applicable law but not at a rate
greater than the rate at which interest is then accruing on the Debentures) at
the Coupon Rate compounded quarterly during any such Extension Period. Prior to
the termination of any such Extension Period, the Debenture Issuer may further
defer payments of interest by further extending such Extension Period; provided
that such Extension Period, together with all such previous and further
extensions within such Extension Period, may not exceed 20 consecutive quarterly
periods, including the first quarterly period during such Extension Period, or
extend beyond the Stated Maturity Date of the Debentures. Upon the termination
of any Extension Period and the payment of all amounts then due, the Debenture
Issuer may commence a new Extension Period, subject to the above requirements.

     (c) Distributions on the Securities will be payable to the Holders thereof
as they appear on the books and records of the Trust on the close of business on
the 15th day of the month in which the relevant Distribution Date occurs, which
Distribution Dates correspond to the interest payment dates on the Debentures.
Subject to any applicable laws and regulations and the provisions of the
Declaration, each such payment in respect of the Preferred Securities will be
made as described under the heading "Description of the Trust Preferred
Securities - Distributions" and "--Payment and Paying Agency" in the Prospectus
Supplement dated March 16, 2001, of the Debenture Issuer and the Trust relating
to the Securities and the Debentures.  The relevant record dates for the Common
Securities shall be the same as the record dates for the Preferred Securities.
Distributions payable on any Securities that are not punctually paid on any
Distribution Date, as a result of the Debenture Issuer having failed to make a
payment under the Debentures, will cease to be payable to the Holder 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 (and without any interest or other
payment in respect of any such delay), except that if such next succeeding
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day with the same force and effect as if
made on such date.

     (d) 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.

                                      I-2
<PAGE>

     3.  Liquidation Distribution Upon Dissolution.

     In the event of any termination of the Trust, or if the Sponsor otherwise
gives notice of its election to liquidate the Trust pursuant to Section
8.1(a)(iii) of the Declaration, the Trust shall be liquidated by the
Administrative Trustees as expeditiously as the Administrative Trustees
determine to be possible by distributing to the Holders, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, a Like
Amount (as defined below) of the Debentures, unless such distribution is
determined by the Property Trustee not to be practicable, in which event such
Holders will be entitled to receive Pro Rata out of the assets of the Trust
legally available for distribution to Holders an amount equal to the aggregate
of the liquidation amount of $25 per Security plus accumulated and unpaid
Distributions thereon to the date of payment, after satisfaction of liabilities
to creditors of the Trust as provided by applicable law (such amount being the
"Liquidation Distribution").

     "Like Amount" means (i) with respect to a redemption of the Securities,
Securities having a liquidation amount equal to the principal amount of
Debentures to be paid or prepaid in accordance with their terms and (ii) with
respect to a distribution of Debentures upon the dissolution or liquidation of
the  Trust, Debentures having a principal amount equal to the liquidation amount
of the Securities of the Holder to whom such Debentures are distributed.

     If, upon any such liquidation, the Liquidation Distribution can be paid
only in part because the Trust has insufficient assets on hand legally available
to pay in full the aggregate Liquidation Distribution, then the amounts payable
directly by the Trust on the Securities shall be paid on a Pro Rata basis.

     4.  Redemption and Distribution.

     (a) Upon the repayment or prepayment of the Debentures in whole or in part,
at maturity or otherwise (either at the option of the Debenture Issuer or
following a Special Event, as described below), the proceeds from such repayment
or prepayment shall be simultaneously applied by the Property Trustee (subject
to the Property Trustee having received written notice no later than 45 days
prior to such repayment or prepayment) to redeem a Like Amount of the Securities
at a redemption price (the "Redemption Price") equal to 100% of the liquidation
amount of the Securities to be redeemed, plus in each case, the accumulated and
unpaid Distributions thereon, if any, to the applicable date of redemption.
Holders will be given not less than 30 nor more than 60 days notice of such
redemption.

     (b) In the case of an optional redemption, if fewer than all the
outstanding Securities are to be so redeemed, the Securities to be redeemed will
be determined as described in Section 4(f)(ii) below.

     The Debenture Issuer shall have the right (subject to the conditions in the
Indenture) to elect to prepay the Debentures in whole or in part at any time on
or after March 21, 2006 upon not less than 30 days and not more than 60 days
notice, at the Redemption Price and, simultaneous with such prepayment, to cause
a Like Amount of the Securities to be prepaid by the Trust at the Redemption
Price on a Pro Rata basis.

                                      I-3
<PAGE>

     (c) If at any time an Investment Company Event, a Tax Event or a Regulatory
Capital Event (each as defined below, and each a "Special Event") occurs, the
Debenture Issuer shall have the right (subject to the conditions set forth in
the Indenture) at any time prior to March 21, 2006 upon not less than 30 nor
more than 60 days' notice, to prepay the Debentures in whole, but not in part,
within the 180 days following the occurrence of such Special Event (the "180 Day
Period"), and, simultaneous with such redemption, to cause a Like Amount of the
Securities to be redeemed by the Trust at the Redemption Price on a Pro Rata
basis.

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

     A "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 or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after March 15, 2001, 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, duties or other governmental charges.

     "Regulatory Capital Event" shall mean that the Debenture Issuer shall have
received an opinion of independent bank regulatory counsel experienced in such
matters to the effect that, as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws (or any regulations
thereunder) of the United States or any rules, guidelines or policies of the
Federal Reserve Board or any regulatory authority applicable to the Debenture
Issuer or (b) any official administrative pronouncement or judicial decision
interpreting or applying such laws or regulations, which amendment or change is
effective or such pronouncement or decision is announced on or after March 15,
2001, the Preferred Securities do not constitute, or within 90 days of the date
thereof, will not constitute, Tier 1 Capital (or its then equivalent); 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 Regulatory Capital Event unless such liquidation shall have
occurred in connection with a Tax Event.

     (d) On and from the date fixed by the Administrative Trustees for any
distribution of Debentures and liquidation of the Trust: (i) the Securities will
no longer be deemed to be outstanding, (ii) the Clearing Agency or its nominee
(or any successor Clearing Agency or its nominee), as the Holder of the
Preferred Securities, will receive a registered global certificate or

                                      I-4
<PAGE>

certificates representing the Debentures to be delivered upon such distribution,
and (iii) any certificates representing Securities not held by the Clearing
Agency or its nominee (or any successor Clearing Agency or its nominee) will be
deemed to represent beneficial interests in a Like Amount of Debentures until
such certificates are presented to the Debenture Issuer or its agent for
transfer or reissue.

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

     (f) The procedure with respect to redemptions or distributions of
Securities shall be as follows:

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

          (ii) In the event that fewer than all the outstanding Securities are
     to be redeemed, the particular Securities to be redeemed shall be selected
     on a Pro Rata basis (based upon Liquidation Amounts) not more than 60 days
     prior to the date fixed for redemption from the outstanding Preferred
     Securities not previously called for redemption; provided, however, that
     with respect to Holders that would be required to hold less than 100 but
     more than zero Securities as a result of such pro rata redemption, the
     Trust shall redeem Securities of each such Holder so that after such
     redemption such Holder shall hold either 100 Securities or such Holder no
     longer holds any Securities, and in selecting Securities for redemption
     shall use such method (including, without limitation, by lot) as the Trust
     shall deem fair and appropriate; and provided, further, that any such
     proration may be made on the basis of the aggregate Liquidation Amount of
     Securities held by each Holder thereof and may be made by making such
     adjustments as the Trust deems fair and appropriate in order that only
     Securities in denominations of $25 liquidation amount or integral multiples
     thereof shall be redeemed. In respect of Preferred Securities registered in
     the name of and held of record by the Clearing Agency or its nominee (or
     any successor Clearing Agency or its nominee) or any nominee, the
     distribution of the proceeds of such redemption will be made to the
     Clearing Agency and disbursed by such Clearing Agency in accordance with
     the procedures applied by such agency or nominee.

                                      I-5
<PAGE>

          (iii)  If Securities are to be redeemed and the Trust gives a
     Redemption/Distribution Notice, (which notice will be irrevocable), then
     (A) with respect to Preferred Securities issued in book-entry form, by
     12:00 noon, New York City time, on the redemption date, provided that the
     Debenture Issuer has paid the Property Trustee a sufficient amount of cash
     in connection with the related redemption or maturity of the Debentures by
     10:00 a.m., New York City time, on the maturity date or the date of
     redemption, as the case requires, the Property Trustee will deposit
     irrevocably with the Clearing Agency or its nominee (or successor Clearing
     Agency or its nominee) funds sufficient to pay the applicable Redemption
     Price with respect to such Preferred Securities and will give the Clearing
     Agency irrevocable instructions and authority to pay the Redemption Price
     to the relevant Clearing Agency Participants, and (B) with respect to
     Preferred Securities issued in certificated form and Common Securities,
     provided that the Debenture Issuer has paid the Property Trustee a
     sufficient amount of cash in connection with the related prepayment or
     maturity of the Debentures, the Property Trustee will pay the relevant
     Redemption Price to the Holders by check mailed to the address of the
     relevant 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, if applicable, then immediately prior to
     the close of business on the date of such deposit, or on the redemption
     date, as applicable, Distributions will cease to accumulate on the
     Securities so called for redemption and all rights of Holders so called for
     redemption will cease, except the right of the Holders of such Securities
     to receive the Redemption Price, but without interest on such Redemption
     Price, and such Securities shall cease to be outstanding.

          (iv) Payment of accumulated and unpaid Distributions on the Redemption
     Date of the Securities will be subject to the rights of Holders on the
     close of business on a regular record date in respect of a Distribution
     Date occurring on or prior to such Redemption Date.

          Neither the Administrative Trustees nor the Trust shall be required to
     register or cause to be registered the transfer of (i) any Securities
     beginning on the opening of business 15 days before the day of mailing of a
     notice of redemption or any notice of selection of Securities for
     redemption or (ii) any Securities selected for redemption except the
     unredeemed portion of any Security being redeemed.  If any date fixed for
     redemption of Securities is not a Business Day, then payment of the
     Redemption Price payable on such date will be made on the next succeeding
     day that is a Business Day (and without any interest or other payment in
     respect of any such delay) except that, if such next succeeding Business
     Day falls in the next succeeding calendar year, such payment shall be made
     on the immediately preceding Business Day, 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 Property Trustee or by the Sponsor as guarantor
     pursuant to the relevant Securities Guarantee, Distributions on such
     Securities will continue to accumulate 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.

                                      I-6
<PAGE>

          (v) Redemption/Distribution Notices shall be sent by the Property
     Trustee on behalf of the Trust to (A) in respect of the Preferred
     Securities, the Clearing Agency or its nominee (or any successor Clearing
     Agency or its nominee) if the Global Certificates have been issued or, if
     Definitive Preferred Security Certificates have been issued, to the Holder
     thereof, and (B) in respect of the Common Securities, to the Holder
     thereof.

          (vi) Subject to the foregoing and applicable law (including, without
     limitation, United States Federal securities laws and banking laws),
     provided 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 Preferred Securities by
     tender, in the open market or by private agreement.

     5.  Voting Rights - Preferred Securities.

     (a) Except as provided under Sections 5(b), 6(b) and 7 and as otherwise
required by law and the Declaration, the Holders of the Preferred Securities
will have no voting rights.

     (b) So long as any Debentures are held by the Property Trustee, the
Trustees shall not (i) direct the time, method or place of conducting any
proceeding for any remedy available to the Debenture Trustee or executing any
trust or power conferred on such Debenture Trustee with respect to the
Debentures, (ii) waive any past default that is waivable under Section 5.7 of
the Indenture, (iii) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal of the Debentures or (iv) consent
to any amendment, modification or termination of the Indenture or the
Debentures, where such consent shall be required, without, in each case,
obtaining the prior approval of the Holders of a majority in liquidation amount
of all outstanding Preferred Securities; provided, however, that where a consent
under the Indenture would require the consent of a Super Majority, only the
Holders of at least a Super Majority in aggregate liquidation amount of the
Preferred Securities may direct the Property Trustee to give such consent or
take such action; and provided further, that where a consent under the Indenture
would require the consent of each holder of Debentures affected thereby, no such
consent shall be given by the Property Trustee without the prior approval of
each Holder of the Preferred Securities. The Trustees shall not revoke any
action previously authorized or approved by a vote of the Holders of the
Preferred Securities except by subsequent vote of such Holders.  The Property
Trustee shall notify each Holder of Preferred Securities of any notice of
default with respect to the Debentures.  In addition to obtaining the foregoing
approvals of such Holders of the Preferred Securities, prior to taking any of
the foregoing actions, the Trustees shall obtain an opinion of counsel
experienced in such matters to the effect that the Trust will not be classified
as an association taxable as a corporation for United States Federal income tax
purposes on account of such action.

     If an Event of Default under the Declaration has occurred and is continuing
and such event is attributable to the failure of the Debenture Issuer to pay
principal of or interest on the Debentures on the due date (or in the case of
redemption, on the redemption date), then a Holder of Preferred Securities may
directly institute a proceeding for enforcement of payment to such Holder of the
principal of or interest on a Like Amount of Debentures (a "Direct Action") on
or after the respective due date specified in the Debentures.  In connection
with such Direct Action, the rights of the Common Securities Holder will be
subrogated to the rights of such Holder of

                                      I-7
<PAGE>

Preferred Securities to the extent of any payment made by the Debenture Issuer
to such Holder of Preferred Securities in such Direct Action. Except as provided
in the second preceding sentence, the Holders of Preferred Securities will not
be able to exercise directly any other remedy available to the holders of the
Debentures.

     Any approval or direction of Holders of Preferred Securities may be given
at a separate meeting of Holders of Preferred Securities convened for such
purpose, at a meeting of all of the Holders of Securities in the Trust or
pursuant to written consent.  The Property Trustees will cause a notice of any
meeting at which Holders of Preferred 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 Preferred 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 Preferred Securities will be
required for the Trust to redeem and cancel Preferred Securities or to
distribute the Debentures in accordance with the Declaration and the terms of
the Securities.

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

     6.  Voting Rights - Common Securities.

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

     (b) Unless an Event of Default shall have occurred and be continuing, any
Trustee may be removed at any time by the holder of the Common Securities.  If
an Event of Default has occurred and is continuing, the Property Trustee and the
Delaware Trustee may be removed at such time by the holders of a Majority in
liquidation amount of the outstanding Preferred Securities.  In no event will
the holders of the Preferred Securities have the right to vote to appoint,
remove or replace the Administrative Trustees, which voting rights are vested
exclusively in the Sponsor as the holder of the Common Securities.  No
resignation or removal of a Trustee and no appointment of a successor trustee
shall be effective until the acceptance of appointment by the successor trustee
in accordance with the provisions of the Declaration.

     (c) Subject to Section 2.6 of the Declaration and only after the Event of
Default with respect to the Preferred Securities has been cured, waived or
otherwise eliminated, so long as any Debentures are held by the Property
Trustee, the Trustees shall not (i) direct the time, method and place of
conducting any proceeding for any remedy available to the Debenture Trustee, or
executing any trust or power conferred on such Debenture Trustee with respect to
the Debentures, (ii) waive any past default that is waivable under Section 5.7
of the Indenture, (iii) exercise any right to rescind or annul a declaration of
acceleration of the maturity of the principal

                                      I-8
<PAGE>

of the Debentures or (iv) consent to any amendment, modification or termination
of the Indenture or the Debentures, where such consent shall be required,
without, in each case, obtaining the prior approval of the Holders of a Majority
in liquidation amount of all outstanding Common Securities; provided, however,
that where a consent under the Indenture would require the consent of a Super
Majority, only the Holders of at least a Super Majority in aggregate liquidation
amount of the Common Securities may direct the Property Trustee to give such
consent or take such action; and provided further, that where a consent under
the Indenture would require the consent of each holder of Debentures affected
thereby, no such consent shall be given by the Property Trustee without the
prior approval of each Holder of the Common Securities. The Trustees shall not
revoke any action previously authorized or approved by a vote of the Holders of
the Common Securities except by subsequent vote of such Holders. The Property
Trustee shall notify each Holder of Common Securities of any notice of default
with respect to the Debentures. In addition to obtaining the foregoing approvals
of such Holders of the Common Securities prior to taking any of the foregoing
actions, the Trustees shall obtain an opinion of counsel experienced in such
matters to the effect that the Trust will not be classified as an association
taxable as a corporation for United States Federal income tax purposes on
account of such action.

     If an Event of Default under the Declaration has occurred and is continuing
and such event is attributable to the failure of the Debenture Issuer to pay
principal of or interest on the Debentures on the due date (or in the case of
redemption, on the redemption date), then a Holder of Common Securities may
institute a Direct Action for enforcement of payment to such Holder of the
principal of or interest on a Like Amount of Debentures on or after the
respective due date specified in the Debentures.  In connection with Direct
Action, the rights of the Common Securities Holder will be subordinated to the
rights of such Holder of Preferred Securities to the extent of any payment made
by the Debenture Issuer to such Holder of Common Securities in such Direct
Action.  Except as provided in the second preceding sentence, the Holders of
Common Securities will not be able to exercise directly any other remedy
available to the holders of the Debentures.

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

     No vote or consent of the Holders of 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.

                                      I-9
<PAGE>

     7.  Amendments to Declaration and Indenture.

     In addition to the requirements set out in Section 12.1 of the Declaration,
the Declaration may be amended from time to time by the Sponsor, the Property
Trustee and the Administrative Trustees without the consent of the Holders (i)
to cure any ambiguity, correct or supplement any provisions in the Declaration
that may be inconsistent with any other provisions, or to make any other
provisions with respect to matters or questions arising under the Declaration
which shall not be inconsistent with the other provisions of the Declaration; or
(ii) to modify, eliminate or add to any provisions of the Declaration to such
extent as shall be necessary to ensure that the Trust will be classified for
United States Federal income tax purposes as a grantor trust at all times that
any Securities are outstanding or to ensure that the Trust will not be required
to register as an "Investment Company" under the Investment Company Act;
provided, however, that in the case of clause (i), such action shall not
adversely affect in any material respect the interests of any Holder, and any
amendments of the Declaration shall become effective when notice thereof is
given to the Holders.  The Declaration may also be amended by the Trustees and
the Sponsor with (i) the consent of Holders representing a Majority in
liquidation amount of all outstanding Securities, and (ii) receipt by the
Trustees of an Opinion of Counsel to the effect that such amendment or the
exercise of any power granted to the Trustees in accordance with such amendment
will not affect the Trust's status as a grantor trust for United States Federal
income tax purposes or the Trust's exemption from status as an Investment
Company under the Investment Company Act, provided that, without the consent of
each Holder of Trust Securities, the Declaration may not be amended to: (i)
change the amount or timing of any Distribution on the Trust Securities or
reduce the amount payable on redemption thereof or otherwise adversely affect
the amount of any Distribution required to be made in respect of the Trust
Securities as of a specified date; or (ii) restrict the right of a holder of
Trust Securities to institute suit for the enforcement of any such payment on or
after such date.

     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 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 under the Declaration has
occurred and is continuing, in which case any funds available to make such
payment shall be paid first to each Holder of the Preferred Securities pro rata
according to the aggregate liquidation amount of Preferred Securities held by
the relevant Holder relative to the aggregate liquidation amount of all
Preferred Securities outstanding, and, only after satisfaction of all amounts
owed to the Holders of the Preferred Securities, to each Holder of Common
Securities pro rata according to the aggregate liquidation amount of Common
Securities held by the relevant Holder relative to the aggregate liquidation
amount of all Common Securities outstanding.

     9.  Ranking.

     The Preferred Securities rank pari passu with the Common Securities and
payment thereon shall be made Pro Rata with the Common Securities, except that,
if an Event of Default under the Declaration occurs and is continuing, no
payments in respect of Distributions on, or

                                     I-10
<PAGE>

payments upon liquidation, redemption or otherwise with respect to, the Common
Securities shall be made until the Holders of the Preferred Securities shall be
paid in full the Distributions, Redemption Price, Liquidation Distribution and
other payments to which they are entitled at such time.

     10.  Acceptance of Securities Guarantee and Indenture.

     Each Holder of Preferred Securities and Common Securities, by the
acceptance thereof, agrees to the provisions of the Preferred Securities
Guarantee and the Common Securities Guarantee, respectively, including the
subordination provisions therein and to the provisions of the Indenture.

     11.  No Preemptive Rights.

     The Holders shall have no preemptive 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 Preferred
Securities Guarantee, the Common Securities Guarantee (as may be appropriate),
and the Indenture (including any supplemental indenture) to a Holder without
charge upon written request to the Sponsor at its principal place of business.

                                     I-11
<PAGE>

                                  EXHIBIT A-1

         FORM OF 9.20% CUMULATIVE TRUST PREFERRED SECURITY CERTIFICATE

                           [FORM OF FACE OF SECURITY]

     [IF THIS GLOBAL SECURITY IS A GLOBAL PREFERRED SECURITY, INSERT:  THIS
PREFERRED SECURITY IS A GLOBAL PREFERRED SECURITY WITHIN THE MEANING OF THE
DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF [THE
DEPOSITORY TRUST COMPANY]/1/ (THE "CLEARING AGENCY") OR A NOMINEE OF THE
CLEARING AGENCY. THIS PREFERRED SECURITY IS EXCHANGEABLE FOR PREFERRED
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE CLEARING AGENCY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION AND
NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED
SECURITY AS A WHOLE BY THE CLEARING AGENCY TO A NOMINEE OF THE CLEARING AGENCY
OR BY A NOMINEE OF THE CLEARING AGENCY TO THE CLEARING AGENCY OR ANOTHER NOMINEE
OF THE CLEARING AGENCY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.]

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

_________________
/1/ Insert name of Clearing Agency for the Global Preferred Securities.

                                     A1-1
<PAGE>

Number of                                                  Aggregate Liquidation
Preferred Securities                                       Amount:______________
___________________                                        CUSIP NO. 85915H 20 6

       Certificate Evidencing 9.20% Cumulative Trust Preferred Securities

                                       of

                      Sterling Bancshares Capital Trust II

                  9.20% Cumulative Trust Preferred Securities
                (liquidation amount $25 per Preferred Security)

     Sterling Bancshares Capital Trust II, a statutory business trust created
under the laws of the State of Delaware (the "Trust"), hereby certifies that
______________ (the "Holder") is the registered owner of [$_________ in
aggregate liquidation amount of Preferred Securities of the Trust]/2/ [the
aggregate liquidation amount of Preferred Securities of the Trust specified in
Schedule A hereto]/3/ representing undivided beneficial interests in the assets
of the Trust designated the 9.20% Cumulative Trust Preferred Securities
(liquidation amount $25 per Preferred Security) (the "Preferred Securities").
The Preferred Securities are transferable on the books and records of the Trust,
in person or by a duly authorized attorney, upon surrender of this certificate
duly endorsed and in proper form for transfer. The designation, rights,
privileges, restrictions, preferences and other terms and provisions of the
Preferred Securities represented hereby are issued and shall in all respects be
subject to the provisions of the Amended and Restated Declaration of Trust of
the Trust dated as of March 21, 2001, as the same may be amended from time to
time (the "Declaration"), including the designation of the terms of the
Preferred Securities as set forth in Annex I to the Declaration. Capitalized
terms used but not defined herein shall have the meaning given them in the
Declaration. The Sponsor will provide a copy of the Declaration, the Preferred
Securities Guarantee, the Common Securities Guarantee (as may be appropriate),
and the Indenture (including any supplemental indenture) to a Holder without
charge upon written request to the Trust at its principal place of business.

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

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

_________________
/2/  Insert in Definitive Preferred Securities only.

/3/  Insert in Global Preferred Securities only.

                                     A1-2
<PAGE>

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

Dated:

                                            STERLING BANCSHARES CAPITAL TRUST II

                                            By:   ____________________________

                                            Name: ____________________________
                                                     Administrative Trustee

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                              BANKERS TRUST COMPANY,
                                              as Property Trustee

                                              By: ______________________________
                                                        Authorized Signatory

                                     A1-3
<PAGE>

                         [FORM OF REVERSE OF SECURITY]

     Distributions payable on each Preferred Security will be fixed at a rate
per annum of 9.20% (the "Coupon Rate") of the liquidation amount of $25 per
Preferred Security, such rate being the rate of interest payable on the
Debentures to be held by the Property Trustee.  Distributions in arrears for
more than one quarterly period will bear interest thereon compounded quarterly
at the Coupon Rate (to the extent permitted by applicable law).  A Distribution
is payable only to the extent that payments are made in respect of the
Debentures held by the Property Trustee and to the extent the Property Trustee
has funds on hand legally available therefor.

     Distributions on the Preferred Securities will be cumulative, will
accumulate from the most recent date to which Distributions have been paid or,
if no Distributions have been paid, from March 21, 2001 will be payable
quarterly in arrears, on March 31, June 30, September 30 and December 31 of each
year, commencing on June 30, 2001, except as otherwise described below and on
the Stated Maturity Date. Distributions will be computed on the basis of a 360-
day year consisting of twelve 30-day months and, for any period less than a full
calendar month, the number of days elapsed in such month.  As long as no Event
of Default has occurred and is continuing under the Indenture, the Debenture
Issuer has the right under the Indenture to defer payments of interest by
extending the interest payment period at any time and from time to time on the
Debentures for a period not exceeding 20 consecutive calendar quarterly periods,
including the first such quarterly period during such extension period (each an
"Extension Period"), provided that no Extension Period shall end on a date other
than an Interest Payment Date for the Debentures or extend beyond the Stated
Maturity Date of the Debentures.  As a consequence of such deferral,
Distributions will also be deferred.  Despite such deferral, quarterly
Distributions will continue to accumulate with interest thereon (to the extent
permitted by applicable law, but not at a rate exceeding the rate of interest
then accruing on the Debentures) at the Coupon Rate compounded quarterly during
any such Extension Period.  Prior to the termination of any such Extension
Period, the Debenture Issuer may further defer payments of interest by further
extending such Extension Period; provided that such Extension Period, together
with all such previous and further extensions within such Extension Period, may
not exceed 20 consecutive quarterly periods, including the first quarterly
period during such Extension Period, end on a date other than an Interest
Payment Date for the Debentures or extend beyond the Stated Maturity Date of the
Debentures. Payments of accumulated Distributions will be payable to Holders as
they appear on the books and records of the Trust on the first record date after
the end of the Extension Period.  Upon the termination of any Extension Period
and the payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.

     Subject to the prior approval of the Federal Reserve Board if such approval
is then required under applicable law or capital guidelines or policies of the
Federal Reserve Board and the receipt of any other required regulatory approvals
and to certain other conditions set forth in the Declaration and the Indenture,
the Property Trustee may, at the direction of the Sponsor, at any time liquidate
the Trust and cause the Debentures to be distributed to the holders of the
Securities in liquidation of the Trust or, simultaneously with any redemption of
the Debentures, cause a Like Amount of the Securities to be redeemed by the
Trust.

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

                                     A1-4
<PAGE>

                                   ASSIGNMENT

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

________________________________________________________________________________

________________________________________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
                   (Insert address and zip code of assignee)

and irrevocably appoints _______________________________________________________

________________________________________________________________________________

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

Date: _______________________

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

Signature Guarantee ***:  ___________________________________

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

                                     A1-5
<PAGE>

                                  Schedule A*

     The initial number of Preferred Securities evidenced by the Certificate to
which this Schedule is attached is 1,150,000 (having an aggregate liquidation
amount of $28,750,000).  The notations in the following table evidence decreases
and increases in the number of Preferred Securities evidenced by such
certificate.

<TABLE>
<CAPTION>
                                                     Number of Preferred
    Decrease in              Increase in                  Securities
     Number of                Number of                Remaining After
     Preferred                Preferred                 such Decrease               Notation by
    Securities               Securities                  or Increase                 Registrar
-----------------------------------------------------------------------------------------------------
<S>                          <C>                     <C>                            <C>

-----------------------------------------------------------------------------------------------------
</TABLE>

______________________
*  Append to Global Preferred Securities only.

                                     A1-6
<PAGE>

                                  EXHIBIT A-2

                      FORM OF COMMON SECURITY CERTIFICATE

     THIS COMMON 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 LAW.  NEITHER THIS COMMON 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, REGISTRATION.

     THE HOLDER OF THIS COMMON SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER THIS COMMON SECURITY, PRIOR TO THE DATE (THE
"RESALE RESTRICTION TERMINATION DATE") WHICH IS THREE YEARS AFTER THE LATER OF
THE ORIGINAL ISSUANCE DATE HEREOF AND THE LAST DATE ON WHICH STERLING
BANCSHARES, INC. (THE "COMPANY") OR ANY "AFFILIATE" OF THE COMPANY WAS THE OWNER
OF THIS COMMON SECURITY (OR ANY PREDECESSOR OF THIS COMMON SECURITY) ONLY (A) TO
THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) SO LONG AS THIS COMMON SECURITY IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
(AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) TO AN INSTITUTIONAL "ACCREDITED
INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501
UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS COMMON SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO
ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE
SECURITIES ACT, SUBJECT TO THE RIGHT OF THE TRUST AND THE COMPANY PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, AND (ii) PURSUANT TO CLAUSE (D), TO REQUIRE THAT A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE REVERSE OF THIS COMMON
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEREE TO THE TRUST.  SUCH HOLDER
FURTHER AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS COMMON SECURITY
IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
<PAGE>

                    Certificate Evidencing Common Securities

                                       of

                      Sterling Bancshares Capital Trust II
                            9.20% Common Securities
                  (liquidation amount $25 per Common Security)

     Sterling Bancshares Capital Trust II, a statutory business trust formed
under the laws of the State of Delaware (the "Trust"), hereby certifies that
______________________ (the "Holder") is the registered owner of __________
common securities of the Trust representing undivided beneficial interests in
the assets of the Trust designated the ____% Common Securities (liquidation
amount $25 per Common Security) (the "Common Securities").  The Common
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 designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Common
Securities represented hereby are issued and shall in all respects be subject to
the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of March 21, 2001, as the same may be amended from time to time (the
"Declaration"), including the designation of the terms of the Common Securities
as set forth in Annex I to the Declaration.  Capitalized terms used but not
defined herein shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration, the Common Securities Guarantee, the
Preferred Securities Guarantee (as may be appropriate) and the Indenture
(including any supplemental indenture) to a Holder without charge upon written
request to the Sponsor at its principal place of business.

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

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

     IN WITNESS WHEREOF, the Trust has executed this certificate this ___ day of
__________, 2001.

                                            Sterling Bancshares Capital Trust II

                                            By:_________________________________

                                            Name:_______________________________
                                                   Administrative Trustee
<PAGE>

                         [FORM OF REVERSE OF SECURITY]

     Distributions payable on each Common Security will be fixed at a rate per
annum of 9.20% (the "Coupon Rate") of the liquidation amount of $25 per Common
Security, such rate being the rate of interest payable on the Debentures to be
held by the Property Trustee.  Distributions in arrears for more than one
quarterly period will bear interest thereon compounded quarterly at the Coupon
Rate (to the extent permitted by applicable law).  A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Property Trustee and to the extent the Property Trustee has funds available
therefor.

     Distributions on the Common Securities will be cumulative, will accrue from
the most recent date to which Distributions have been paid or, if no
Distributions have been paid, from March 21, 2001 and will be payable quarterly
in arrears, on March 31, June 30, September 30 and December 31 of each year,
commencing on June 30, 2001, except as otherwise described below and on the
Stated Maturity Date.  Distributions will be computed on the basis of a 360-day
year consisting of twelve 30-day months and, for any period less than a full
calendar month, the number of days elapsed in such month.  As long as no Event
of Default has occurred and is continuing under the Indenture, the Debenture
Issuer has the right under the Indenture to defer payments of interest by
extending the interest payment period at any time and from time to time on the
Debentures for a period not exceeding 20 consecutive calendar quarterly periods,
including the first such quarterly period during such extension period (each an
"Extension Period"), provided that no Extension Period shall end on a date other
than an Interest Payment Date for the Debentures or extend beyond the Stated
Maturity Date of the Debentures.  As a consequence of such deferral,
Distributions will also be deferred.  Despite such deferral, Distributions will
continue to accumulate with interest thereon (to the extent permitted by
applicable law, but not at a rate exceeding the rate of interest then accruing
on the Debentures) at the Coupon Rate compounded quarterly during any such
Extension Period.  Prior to the termination of any such Extension Period, the
Debenture Issuer may further defer payments of interest by further extending
such Extension Period; provided that such Extension Period, together with all
such previous and further extensions within such Extension Period, may not
exceed 20 consecutive quarterly periods, including the first quarterly period
during such Extension Period, or end on a date other than an Interest Payment
Date for the Debentures or extend beyond the Stated Maturity Date of the
Debentures.  Payments of accrued Distributions will be payable to Holders as
they appear on the books and records of the Trust on the first record date after
the end of the Extension Period.  Upon the termination of any Extension Period
and the payment of all amounts then due, the Debenture Issuer may commence a new
Extension Period, subject to the above requirements.

     Subject to the prior approval of the Federal Reserve Board if such approval
is then required under applicable law or capital guidelines or policies of the
Federal Reserve Board and the receipt of any other required regulatory approval
and to certain other conditions set forth in the Declaration and the Indenture,
the Property Trustee may, at the direction of the Sponsor, at any time liquidate
the Trust and cause the Debentures to be distributed to the holders to the
Securities in liquidation of the Trust or, simultaneous with any redemption of
the Debentures, cause a Like Amount of the Securities to be redeemed by the
Trust.
<PAGE>

     Under certain circumstances, the right of the holders of the Common
Securities shall be subordinate to the rights of the holders of the Preferred
Securities (as defined in the Declaration), as provided in the Declaration.

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

                                                                     EXHIBIT 4.4

===============================================================================

                           STERLING BANCSHARES, INC.

                         -----------------------------

                                   INDENTURE

                           DATED AS OF MARCH 21, 2001

                         -----------------------------

                             BANKERS TRUST COMPANY,

                                   AS TRUSTEE

                         -----------------------------

            JUNIOR SUBORDINATED DEBT SECURITIES, ISSUABLE IN SERIES

================================================================================
<PAGE>

+TIE-SHEET

     of provisions of Trust Indenture Act of 1939 with Indenture dated as of
March 21, 2001 between Sterling Bancshares, Inc. and Bankers Trust Company, as
Trustee:

ACT Section                                                INDENTURE Section

310 (a) (1)..............................................................6.9
    (a) (2)..............................................................6.9
310 (a) (3)..............................................................N/A
    (a) (4)..............................................................N/A
310 (a) (5).......................................................6.10, 6.11
310 (b)..................................................................N/A
310 (c).................................................................6.13
311 (a) and (b)..........................................................N/A
311 (c)..........................................................4.1, 4.2(a)
312 (a)..................................................................4.2
312 (b) and (c)..........................................................4.4
313 (a)..................................................................4.4
313 (b) (1)..............................................................4.4
313 (b) (2)..............................................................4.4
313 (c)..................................................................4.4
313 (d)..................................................................4.4
314 (a)..................................................................4.3
314 (b)..................................................................N/A
314 (c) (1) and (2)......................................................6.7
314 (c) (3)..............................................................N/A
314 (d)..................................................................N/A
314 (e)..................................................................6.7
314 (f)..................................................................N/A
315 (a) (c) and (d)......................................................6.1
315 (b)..................................................................5.8
315 (e)..................................................................5.9
316 (a) (1)..............................................................5.7
316 (a) (2)..............................................................N/A
316 (a) last sentence....................................................2.9
316 (b)..................................................................9.2
317 (a)..................................................................5.5
317 (b)..................................................................6.5
318 (a).................................................................13.8

            THIS TIE-SHEET IS NOT PART OF THE INDENTURE AS EXECUTED.
<PAGE>

                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I DEFINITIONS..........................................................1
  SECTION 1.1   Definitions....................................................1
  "Additional Provisions"......................................................1
  "Affiliate"..................................................................1
  "Authenticating Agent".......................................................1
  "Bankruptcy Law".............................................................1
  "Board of Directors".........................................................1
  "Board Resolution"...........................................................1
  "Business Day"...............................................................2
  "Certificate"................................................................2
  "Certificate of Authentication"..............................................2
  "Commission".................................................................2
  "Common Securities"..........................................................2
  "Common Securities Guarantee"................................................2
  "Common Stock"...............................................................2
  "Company"....................................................................2
  "Company Request" or "Company Order".........................................2
  "Custodian"..................................................................2
  "Declaration"................................................................2
  "Default"....................................................................2
  "Defaulted Interest".........................................................2
  "Definitive Securities"......................................................2
  "Depositary".................................................................2
  "Direct Action"..............................................................3
  "Distributions"..............................................................3
  "Event of Default"...........................................................3
  "Exchange Act"...............................................................3
  "Federal Reserve"............................................................3
  "Global Security"............................................................3
  "Indebtedness"...............................................................3
  "Indenture"..................................................................3
  "Interest Payment Date,".....................................................3
  "Mortgage"...................................................................3
  "Officers"...................................................................3
  "Officers' Certificate"......................................................3
  "Opinion of Counsel".........................................................3
  "Other Debentures"...........................................................3
  "Other Guarantees"...........................................................4
  "Outstanding"................................................................4
  "Person".....................................................................4
  "Predecessor Security".......................................................4
  "Preferred Securities".......................................................4
  "Preferred Securities Guarantee".............................................4
  "Principal Office of the Trustee"............................................4
  "Property Trustee"...........................................................4
  "Responsible Officer"........................................................4
  "Securities" or "Security"...................................................5
  "Securities Act".............................................................5
  "Securityholder," "holder of Securities,"....................................5
  "Securities Register"........................................................5

---------------------
     *    This Table of Contents shall not, for any purpose, be deemed to be a
          part of the Indenture.

                                       i
<PAGE>

  "Senior Indebtedness"........................................................5
  "Sterling Capital Trust" or the "Trust"......................................5
  "Subsidiary".................................................................5
  "Trustee"....................................................................5
  "Trust Indenture Act"........................................................5
  "Trust Securities"...........................................................5
  "U.S. Government Obligations"................................................5
  SECTION 1.2   Business Day Certificate.......................................6

ARTICLE II SECURITIES..........................................................6
  SECTION 2.1   Forms Generally................................................6
  SECTION 2.2   Amount Unlimited; Issuable in Series...........................6
  SECTION 2.3   Execution and Authentication...................................8
  SECTION 2.4   Authentication and Dating......................................8
  SECTION 2.5   Date and Denomination of Securities............................9
  SECTION 2.6   Transfer and Exchange.........................................10
  SECTION 2.7   Replacement Securities........................................11
  SECTION 2.8   Temporary Securities..........................................11
  SECTION 2.9   Cancellation..................................................11
  SECTION 2.10  Global Securities.............................................11
  SECTION 2.11  Cusip Numbers.................................................12

ARTICLE III PARTICULAR COVENANTS OF THE COMPANY...............................12
  SECTION 3.1   Payment of Principal and Interest.............................12
  SECTION 3.2   offices for Notices and Payments, etc.........................13
  SECTION 3.3   Appointments to Fill Vacancies in trustee's Office............13
  SECTION 3.4   Provision as to Paying Agent..................................13
  SECTION 3.5   Certificate to Trustee........................................14
  SECTION 3.6   Compliance with Consolidation Provisions......................14
  SECTION 3.7   Limitation on Dividends.......................................14
  SECTION 3.8   Covenants as to Sterling Capital Trusts.......................14

ARTICLE IV SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE..15
  SECTION 4.1   Securityholders' Lists........................................15
  SECTION 4.2   Preservation and Disclosure of Lists..........................15
  SECTION 4.3   Reports by the Company........................................16
  SECTION 4.4   Reports by the Trustee........................................17

ARTICLE V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT.....17
  SECTION 5.1   Events of Default.............................................17
  SECTION 5.2   Payment of Securities on Default; Suit Therefor...............18
  SECTION 5.3   Application of Moneys Collected by Trustee....................19
  SECTION 5.4   Proceedings by Securityholders................................20
  SECTION 5.5   Proceedings by Trustee........................................20
  SECTION 5.6   Remedies Cumulative and Continuing............................21
  SECTION 5.7   Direction of Proceedings and Waiver of Defaults by
                Majority of Securityholders...................................21
  SECTION 5.8   Notice of Defaults............................................21
  SECTION 5.9   Undertaking to Pay Costs......................................22
  SECTION 5.10  Requirement to Post Bond......................................22

ARTICLE VI CONCERNING THE TRUSTEE.............................................22
  SECTION 6.1   Duties and Responsibilities of Trustee........................22
  SECTION 6.2   Reliance on Documents, Opinions, etc..........................23
  SECTION 6.3   No Responsibility for Recitals, etc...........................24
  SECTION 6.4   Trustee, Authenticating Agent, Paying Agents, Transfer
                agents or registrar May Own Securities........................24

                                      ii
<PAGE>

  SECTION 6.5   Moneys to be Held in Trust....................................24
  SECTION 6.6   Compensation and Expenses of Trustee..........................24
  SECTION 6.7   Officers' Certificate as Evidence.............................25
  SECTION 6.8   Conflicting Interest of Trustee...............................25
  SECTION 6.9   Eligibility of Trustee........................................25
  SECTION 6.10  Resignation or Removal of Trustee.............................25
  SECTION 6.11  Acceptance by Successor Trustee...............................26
  SECTION 6.12  Succession by Merger, etc.....................................27
  SECTION 6.13  Limitation on Rights of Trustee as a Creditor.................27
  SECTION 6.14  Authenticating Agents.........................................28

ARTICLE VII CONCERNING THE SECURITYHOLDERS....................................28
  SECTION 7.1   Action by Securityholders.....................................28
  SECTION 7.2   Proof of Execution by Securityholders.........................29
  SECTION 7.3   Who are Deemed Absolute Owners................................29
  SECTION 7.4   Securities Owned by Company Deemed Not Outstanding............29
  SECTION 7.5   Revocation of Consents; Future Holders Bound..................30

ARTICLE VIII SECURITYHOLDERS' MEETINGS........................................30
  SECTION 8.1   Purposes of Meetings..........................................30
  SECTION 8.2   Call of Meetings by Trustee...................................30
  SECTION 8.3   Call of Meetings by Company or Securityholders................30
  SECTION 8.4   Qualifications for Voting.....................................31
  SECTION 8.5   Regulations...................................................31
  SECTION 8.6   Voting........................................................31

ARTICLE IX SUPPLEMENTAL INDENTURES............................................32
  SECTION 9.1   Supplemental Indentures Without Consent of Securityholders....32
  SECTION 9.2   Supplemental Indentures With Consent of Securityholders.......33
  SECTION 9.3   Compliance With Trust Indenture Act; Effect of
                Supplemental Indentures.......................................34
  SECTION 9.4   Notation on Securities........................................34
  SECTION 9.5   Evidence of Compliance of Supplemental Indenture to be
                Furnished trustee.............................................34

ARTICLE X CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE...................34
  SECTION 10.1  Company May Consolidate, etc., on Certain Terms...............34
  SECTION 10.2  Successor Corporation to be Substituted For Company...........35
  SECTION 10.3  Opinion of Counsel to be Given Trustee........................35

ARTICLE XI SATISFACTION AND DISCHARGE OF INDENTURE............................35
  SECTION 11.1  Discharge of Indenture........................................35
  SECTION 11.2  Deposited Moneys and U.S. Government Obligations to be
                Held in Trust by Trustee......................................36
  SECTION 11.3  Paying Agent to Repay Moneys Held.............................36
  SECTION 11.4  Return of Unclaimed Moneys....................................36
  SECTION 11.5  Defeasance Upon Deposit of Moneys or U.S. Government
                Obligations...................................................36

ARTICLE XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS...37
  SECTION 12.1  Indenture and Securities Solely Corporate Obligations.........37

ARTICLE XIII MISCELLANEOUS PROVISIONS.........................................37
  SECTION 13.1  Successors....................................................37
  SECTION 13.2  Official Acts by Successor Corporation........................38
  SECTION 13.3  Surrender of Company Powers...................................38
  SECTION 13.4  Addresses for Notices, etc....................................38
  SECTION 13.5  Governing Law.................................................38
  SECTION 13.6  Evidence oF Compliance With Conditions Precedent..............38
  SECTION 13.7  Business Days.................................................38

                                      iii
<PAGE>

  SECTION 13.8  Trust Indenture Act to Control................................39
  SECTION 13.9  Table of Contents, Headings, etC..............................39
  SECTION 13.10 Execution in Counterparts.....................................39
  SECTION 13.11 Separability..................................................39
  SECTION 13.12 Assignment....................................................39
  SECTION 13.13 Acknowledgement of Rights.....................................39

ARTICLE XIV PREPAYMENT OF SECURITIES..........................................40
  SECTION 14.1  Applicability of Article......................................40
  SECTION 14.2  Notice of Prepayment; Selection of Securities.................40
  SECTION 14.3  Payment of Securities Called for Prepayment...................40

ARTICLE XV SUBORDINATION OF SECURITIES........................................41
  SECTION 15.1  Agreement to Subordinate......................................41
  SECTION 15.2  Default on Senior Indebtedness................................41
  SECTION 15.3  Liquidation; Dissolution; Bankruptcy..........................41
  SECTION 15.4  Subrogation...................................................42
  SECTION 15.5  Trustee to Effectuate Subordination...........................43
  SECTION 15.6  Notice by the Company.........................................43
  SECTION 15.7  Rights of the Trustee; Holders of Senior Indebtedness.........44
  SECTION 15.8  Subordination May otT Be Impaired.............................44

                                      iv
<PAGE>

     THIS INDENTURE, dated as of March 21, 2001, between Sterling Bancshares,
Inc. a Texas corporation (hereinafter sometimes called the "Company"), and
Bankers Trust Company, a New York banking corporation, as trustee (hereinafter
sometimes called the "Trustee"),

                             W I T N E S S E T H :

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the issuance from time to time of its junior subordinated unsecured debentures,
notes or other evidences of indebtedness to be issued in one or more series (the
"Securities") up to such principal amount or amounts as may from time to time be
authorized in accordance with the terms of this Indenture and, to provide the
terms and conditions upon which the Securities are to be authenticated, issued
and delivered, the Company has duly authorized the execution of this Indenture.

     NOW, THEREFORE, in consideration of the premises, and the purchase of the
Securities by the holders thereof, the Company covenants and agrees with the
Trustee for the equal and proportionate benefit of the respective holders from
time to time of the Securities or a series thereof, as follows:

                                   ARTICLE I

                                  DEFINITIONS

     SECTION 1.1 Definitions.

     The terms defined in this Section 1.1 (except as herein or in any indenture
supplemental hereto otherwise expressly provided or unless the context otherwise
requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section 1.1.  All
other terms used in this Indenture which are defined in the Trust Indenture Act,
or which are by reference therein defined in the Securities Act, shall (except
as herein or in any indenture supplemental hereto otherwise expressly provided
or unless the context otherwise requires) have the meanings assigned to such
terms in said Trust Indenture Act and in said Securities Act as in force at the
date of this Indenture as originally executed.  All accounting terms used herein
and not expressly defined shall have the meanings assigned to such terms in
accordance with generally accepted accounting principles, and the term
"generally accepted accounting principles" means such accounting principles as
are generally accepted at the time of any computation.  The words "herein",
"hereof" and "hereunder" and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other
subdivision.  Headings are used for convenience of reference only and do not
affect interpretation.  The singular includes the plural and vice versa.

     "Additional Provisions" shall have the meaning given to such term in
Section 15.1.

     "Affiliate" shall have the meaning given to that term in Rule 405 under
the Securities Act or any successor rule thereunder.

     "Authenticating Agent" shall mean any agent or agents of the Trustee which
at the time shall be appointed and acting pursuant to Section 6.14.

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

     "Board of Directors" shall mean either the Board of Directors of the
Company or any duly authorized committee of that board.

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

                                       1
<PAGE>

     "Business Day" shall mean, with respect to any series of Securities, any
day other than a Saturday or a Sunday or a day on which banking institutions in
New York, New York or Houston, Texas are authorized or required by law or
executive order to close.

     "Certificate" shall mean a certificate signed by a principal executive
officer, the principal financial officer or the principal accounting officer
of the Company.

     "Certificate of Authentication" shall mean the certificate issued by the
Trustee or the Authenticating Agent as to the form of Security issued under
the Indenture.

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

     "Common Securities" beneficial interests in the assets of a Sterling
Capital Trust which rank pari passu with Preferred Securities issued by such
Sterling Capital Trust; provided, however, that if an Event of Default has
occurred and is continuing, no payments in respect of Distributions on, or
payments upon liquidation, redemption or otherwise with respect to, the Common
Securities shall be made until the holders of the Preferred Securities shall be
paid in full the Distributions and the liquidation, redemption and other
payments to which they are entitled.

     "Common Securities Guarantee" shall mean any guarantee that the Company
may enter into with any Person or Persons that operates directly or indirectly
for the benefit of holders of Common Securities of a Sterling Capital Trust.

     "Common Stock" shall mean the Common Stock, par value $1.00 per share, of
the Company or any other class of stock resulting from changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value.

     "Company" shall mean Sterling Bancshares, Inc., a Texas corporation, and,
subject to the provisions of Article X, shall include its successors and
assigns.

     "Company Request" or "Company Order" shall mean a written request or
order signed in the name of the Company by the Chairman, the Chief Executive
Officer, the President, a Vice Chairman, a Vice President, the Comptroller, the
Secretary or an Assistant Secretary of the Company, and delivered to the
Trustee.

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

     "Declaration" with respect to a Sterling Capital Trust, shall mean the
governing instrument of such Sterling Capital Trust, as amended from time to
time.

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

     "Defaulted Interest" shall have the same meaning set forth in Section 2.5.

     "Definitive Securities" shall mean those securities issued in fully
registered certificated form not otherwise in global form.

     "Depositary" shall mean, with respect to Securities of any series, for
which the Company shall determine that such Securities will be issued as a
Global Security, The Depository Trust Company, New York, New York, another
clearing agency, or any successor registered as a clearing agency under the
Exchange Act or other

                                       2
<PAGE>

applicable statute or regulation, which, in each case, shall be designated by
the Company pursuant to Section 2.2 and 2.10.

     "Direct Action" shall have the meaning set forth in the Declaration of
the applicable Sterling Capital Trust.

     "Distributions" shall have the meaning set forth in the Declaration of
the applicable Sterling Capital Trust.

     "Event of Default" shall mean any event specified in Section 5.1,
continued for the period of time, if any, and after the giving of the notice, if
any, therein designated.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Federal Reserve" shall mean the Board of Governors of the Federal
Reserve System.

     "Global Security" means, with respect to any series of Securities, a S
ecurity of such series executed by the Company and delivered by the Trustee to
the Depositary or pursuant to the Depositary's instruction, all in accordance
with the Indenture, which shall be registered in the name of the Depositary or
its nominee.

     "Indebtedness" shall mean (i) every obligation of the Company for money
borrowed; (ii) every obligation of the Company evidenced by bonds, debentures,
notes or other similar instruments, including obligations incurred in connection
with the acquisition of property, assets or businesses; (iii) every
reimbursement obligation of the Company with respect to letters of credit,
banker's acceptances or similar facilities issued for the account of the Company
to the extent such reimbursement obligation is no longer contingent upon a draw
by or advance to or on behalf of the Company; (iv) every obligation of the
Company issued or assumed as the deferred purchase price of property or services
(but excluding trade accounts payable or accrued liabilities arising in the
ordinary course of business); (v) every capital lease obligation of the Company;
(vi) all indebtedness of the Company whether incurred on or prior to the date of
this Indenture or thereafter incurred, for claims in respect of derivative
products, including interest rate, foreign exchange rate and commodity forward
contracts, options and swaps and similar arrangements; and (vii) every
obligation of the type referred to in clauses (i) through (vi) of another Person
and all dividends of another Person the payment of which, in either case, the
Company has guaranteed or is responsible or liable for, directly or indirectly,
as obligor or otherwise.

     "Indenture" shall mean this instrument as originally executed or, if
amended or supplemented by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and that include the terms of
a particular series of Securities established as contemplated by Section 2.2.

     "Interest Payment Date," when used with respect to any installment of
interest on a Security of a particular series, shall mean the date specified in
such Security or in a Board Resolution or in an indenture supplemental hereto
with respect to such series as the fixed date on which an installment of
interest with respect to Securities of that series is due and payable.

     "Mortgage" shall mean and include any mortgage, pledge, lien, security
interest, conditional sale or other title retention agreement or other similar
encumbrance.

     "Officers" shall mean any of the Chairman, the Chief Executive Officer,
the President, a Vice President, the Chief Financial Officer, the Secretary or
an Assistant Secretary of the Company.

     "Officers' Certificate" shall mean a certificate signed by two Officers
and delivered to the Trustee.

     "Opinion of Counsel" shall mean a written opinion of counsel, who may be
the general counsel of the Company acceptable to the Trustee.

     "Other Debentures" means all junior subordinated debentures issued by the
Company from time to time and sold to trusts to be established by the Company
(if any), in each case similar to a Sterling Capital Trust.

                                       3
<PAGE>

     "Other Guarantees" means all guarantees to be issued by the Company with
respect to preferred securities (if any) not constituting Preferred Securities
and issued to other trusts to be established by the Company (if any), in each
case similar to a Sterling Capital Trust.

     "Outstanding" when used with reference to the Securities, shall mean,
subject to the provisions of Section 7.4, as of any particular time, all
Securities authenticated and delivered by the Trustee or the Authenticating
Agent under this Indenture, except:

          (a)   Securities theretofore cancelled by the Trustee or the
Authenticating Agent or delivered to the Trustee for cancellation;

          (b)   Securities, or portions thereof, for the payment or redemption
of which moneys in the necessary amount shall have been deposited in trust with
the Trustee or with any paying agent (other than the Company) or shall have been
set aside and segregated in trust by the Company (if the Company shall act as
its own paying agent); provided that, if such Securities, or portions thereof,
are to be redeemed prior to maturity thereof, notice of such redemption shall
have been given as in Article XIV or provision satisfactory to the Trustee shall
have been made for giving such notice; and

          (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.7 unless proof satisfactory to the Company and the Trustee is
presented that any such Securities in lieu of or in substitution for which other
Securities have been so authenticated and delivered are held by bona fide
holders in due course.

     "Person" shall mean any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, limited liability company,
trust, unincorporated organization or government or any agency or political
subdivision thereof.

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.7 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

     "Preferred Securities" shall mean undivided beneficial interests in the
assets of a Sterling Capital Trust which rank pari passu with the Common
Securities issued by such Sterling Capital Trust; provided, however, that if an
Event of Default has occurred and is continuing, no payments in respect of
Distributions on, or payments upon liquidation, redemption or otherwise with
respect to, the Common Securities shall be made until the holders of the
Preferred Securities shall be paid in full the Distributions and the
liquidation, redemption and other payments to which they are entitled.

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

     "Principal Office of the Trustee", or other similar term, shall mean the
office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time be principally administered which office at the
date of execution of this Agreement is located at Bankers Trust Company, Four
Albany Street, New York, New York 10006.

     "Property Trustee" shall have the same meaning set forth in the
Declaration of the applicable Sterling Capital Trust.

     "Responsible Officer" means with respect to the Trustee, any officer
assigned to the Corporate Trust Office, including any managing director, vice
president, assistant vice president, assistant treasurer, assistant secretary or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and having direct
responsibility for the administration of this Indenture, and also, with

                                       4
<PAGE>

respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject.

     "Securities" or "Security" shall have the meaning stated in the first
recital of this Indenture and more particularly means any Security or
Securities, as the case may be, authenticated and delivered under this
Indenture.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Securityholder," "holder of Securities," or other similar terms, shall
mean any Person in whose name at the time a particular Security is registered on
the register kept by the Company or the Trustee for that purpose in accordance
with the terms hereof.

     "Securities Register" shall have the meaning specified in Section 2.6.

     "Senior Indebtedness" means the principal of and interest, if any
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not such
claim for post-petition interest is allowed in such proceeding), on Indebtedness
of the Company, whether incurred on or prior to the date of this Indenture or
thereafter incurred, unless, in the instrument creating or evidencing the same
or pursuant to which the same is outstanding it is provided that such
obligations are not superior in right of payment to the Securities or other
Indebtedness which is pari passu with, or subordinated to the Securities,
provided, however, that Senior Indebtedness shall not be deemed to include (a)
any Indebtedness of the Company which, when incurred and without respect to any
election under Section 1111 (b) of the Bankruptcy Reform Act of 1978, as
amended, was without recourse to the Company, (b) any Indebtedness of the
Company to any of its Subsidiaries, (c) Indebtedness to any employee of the
Company, and (d) any Securities.

     "Sterling Capital Trust" or the "Trust" shall mean each of Sterling
Bancshares Capital Trust II, and Sterling Bancshares Capital Trust III, each a
Delaware business trust created for the purpose of issuing its undivided
beneficial interests in connection with the issuance of Securities under this
Indenture.

     "Subsidiary" shall mean with respect to any Person, (i) any corporation
at least a majority of the outstanding voting stock of which is owned, directly
or indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (ii) any general partnership, joint
venture or similar entity, at least a majority of whose outstanding partnership
or similar interests shall at the time be owned by such Person, or by one or
more of its Subsidiaries, or by such Person and one or more of its Subsidiaries
and (iii) any limited partnership of which such Person or any of its
Subsidiaries is a general partner. For the purposes of this definition, "voting
stock" means shares, interests, participations or other equivalents in the
equity interest (however designated) in such Person having ordinary voting power
for the election of a majority of the directors (or the equivalent) of such
Person, other than shares, interests, participations or other equivalents having
such power only by reason of the occurrence of a contingency.

     "Trustee" shall mean the Person identified as "Trustee" in the first
paragraph hereof, and, subject to the provisions of Article VI hereof, shall
also include its successors and assigns as Trustee hereunder. The term "Trustee"
as used with respect to a particular series of the Securities shall mean the
trustee with respect to that series.

     "Trust Indenture Act" shall mean the Trust Indenture Act of 1939 as in
force at the date of execution of this Indenture, except as provided in Section
9.3; provided, however, that, in the event the Trust Indenture Act is amended
after such date, "Trust Indenture Act" shall mean, to the extent required by any
such amendment, the Trust Indenture Act as so amended.

     "Trust Securities" shall mean the Preferred Securities and the Common
Securities, collectively.

     "U.S. Government Obligations" shall mean securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is

                                       5
<PAGE>

unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case under clauses (i) or (ii) are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian with
respect to any such U.S. Government Obligation or a specific payment of interest
on or principal of any such U.S. Government Obligation held by such custodian
for the account of the holder of a depository receipt, provided that (except as
required by law) such custodian is not authorized to make any deduction from the
amount payable to the holder of such depository receipt from any amount received
by the custodian in respect of the U.S. Government Obligation or the specific
payment of interest on or principal of the U.S. Government Obligation evidenced
by such depository receipt.

     SECTION 1.2 Business Day Certificate.

     On the date of execution and delivery of this Indenture (with respect to
the remainder of calendar year 2001) and thereafter, within 15 days prior to the
end of each calendar year while this Indenture remains in effect (with respect
to the succeeding calendar years), the Company shall deliver to the Trustee an
Officers' Certificate specifying the days on which banking institutions or trust
companies in Houston, Texas are authorized or obligated by law or executive
order to be closed.

                                  ARTICLE II

                                  SECURITIES

     SECTION 2.1 Forms Generally

     (a)  The Securities of each series shall be in substantially the form as
established by or pursuant to a Board Resolution and as set forth in an
Officer's Certificate of the Company or in one or more indentures supplemental
hereto, in each case with appropriate insertions, omissions, substitutions, and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with any law or with
any rules made pursuant thereto or with any rules of any securities exchange or
all as may, consistently herewith, be determined by the officers of the Company
executing such Securities, as evidenced by their execution of the Securities.

     (b)  The form of the Trustee's Certificate of Authentication shall be in
substantially the following form:

                    This is one of the Securities of the series designated
                    therein referred to in the within-mentioned Indenture and
                    [____] Supplemental Indenture.

                    BANKERS TRUST COMPANY,
                    as Trustee

                    By:
                       ---------------------------------
                             Authorized Signatory

     SECTION 2.2 Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one
or more series up to the aggregate principal amount of securities of that series
from time to time authorized by or pursuant to a Board Resolution of the Company
or pursuant to one or more indentures supplemental hereto, subject, however, to
subsection (c) of the definition of "Outstanding" in Section 1.1 and the
following subsection (b) of this Section 2.2. Prior to the initial issuance of

                                       6
<PAGE>

Securities of any series, there shall be established in or pursuant to a Board
Resolution of the Company and set forth in an Officers' Certificate of the
Company or established in one or more indentures supplemental hereto:

     (a)  the title of the Securities of the series (which shall distinguish the
Securities of the series from all other Securities);

     (b)  any limit upon the aggregate principal amount of the Securities of the
series which may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Sections
2.6, 2.7, 2.8, 9.4, and 14.3);

     (c)  the date or dates on which the principal of and premium, if any, on
the Securities of the series is payable;

     (d)  the rate or rates at which the Securities of the series shall bear
interest, if any, or the method by which such interest may be determined, the
date or dates from which such interest shall accrue, the Interest Payment Dates
on which such interest shall be payable or the manner of determination of such
Interest Payment Dates and the record dates for the determination of holders to
whom interest is payable on any such Interest Payment Dates;

     (e)  the place or places where the principal of, and premium, if any, and
any interest on Securities of the series shall be payable;

     (f)  the right, if any, to extend the interest payment periods and the
duration of such extension;

     (g)  the price or prices at which, the period or periods within which and
the terms and conditions upon which Securities of the series may be prepaid or
redeemed, in whole or in part, at the option of the Company, pursuant to any
sinking fund or otherwise;

     (h)  the obligation, if any, of the Company to prepay, redeem, purchase
or repay Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Securityholder thereof and the price or prices
at which, and the period or periods within which, and the terms and conditions
upon which, Securities of the series shall be prepaid, redeemed, purchased or
repaid, in whole or in part, pursuant to such obligation;

     (i)  if other than denominations of $25 and any integral multiple thereof,
the denominations in which Securities of the series shall be issuable;

     (j)  any Events of Default with respect to the Securities of a particular
series, if not set forth herein;

     (k)  the form of the Securities of the series including the form of the
Certificate of Authentication of such series (which shall be consistent with
Section 2.1(b);

     (l)  any trustee, authenticating or paying agents, warrant agents, transfer
agents or registrars with respect to the Securities of such series;

     (m)  whether the Securities of the series shall be issued in whole or in
part in the form of one or more Global Securities and, in such case, the
Depositary for such Global Security or Securities, and whether beneficial owners
of interests in any such Global Securities may exchange such interests for other
Securities of such series in the manner provided in Section 2.6, and the manner
and the circumstances under which and the place or places where any such
exchanges may occur if other than in the manner provided in Section 2.6, and any
other terms of the series relating to the global nature of the Global Securities
of such series and the exchange, registration or transfer thereof and the
payment of any principal thereof, or interest or premium, if any, thereon; and

     (n)  any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture).

                                       7
<PAGE>

     All Securities of any one series shall be substantially identical except as
to denomination and except as may otherwise be provided in or pursuant to such
resolution of the Board of Directors or in any such indenture supplemental
hereto.

     If any of the terms of the series are established by action taken pursuant
to a Board Resolution of the Company, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate of the Company setting forth the terms of the series.

     SECTION 2.3 Execution and Authentication.

     Two Officers shall sign the Securities for the Company by manual or
facsimile signature.  If an Officer whose signature is on a Security no longer
holds that office at the time the Security is authenticated, the Security shall
nevertheless be valid.

     A Security shall not be valid until authenticated by the manual signature
of the Trustee.  The signature of the Trustee shall be conclusive evidence that
the Security has been authenticated under this Indenture.  The form of Trustee's
certificate of authentication to be borne by the Securities shall be
substantially as set forth in Section 2.1(b) hereto.

     SECTION 2.4 Authentication and Dating.

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Securities to or upon a Company Order, without any
further action by the Company hereunder. In authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.1) shall be fully protected in relying upon:

     (a)  a copy of any Board Resolution or Resolutions relating thereto and, if
applicable, an appropriate record of any action taken pursuant to such
resolution, in each case certified by the Secretary or an Assistant Secretary of
the Company;

     (b)  an executed supplemental indenture, if any;

     (c)  an Officers' Certificate setting forth the form and terms of the
Securities as required pursuant to Section 2.1 and Section 2.2, respectively;
and

     (d)  an Opinion of Counsel prepared in accordance with Section 13.6 which
shall also state:

          (i)  that the form of such Securities has been established by or
     pursuant to a resolution of the Board of Directors or by supplemental
     indenture as permitted by Section 2.1 in conformity with the provisions of
     this Indenture;

          (ii) that the terms of such Securities have been established by or
     pursuant to a resolution of the Board of Directors or by supplemental
     indenture as permitted by Section 2.2 in conformity with the provisions of
     this Indenture;

          (iii)  that such Securities, when authenticated and delivered by the
     Trustee and issued by the Company in the manner and subject to any
     conditions specified in such Opinion of Counsel, will constitute valid and
     legally binding obligations of the Company;

          (iv) that all laws and requirements in respect of the execution and
       delivery by the Company of the Securities have been complied with and
       that authentication and delivery of the Securities by the Trustee will
       not violate the terms of the Indenture; and

                                       8
<PAGE>

          (v)  such other matters as the Trustee may reasonably request.

     The Trustee shall have the right to decline to authenticate and deliver any
Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith by its board of directors or trustees, executive committee, or a trust
committee of directors or trustees and/or vice presidents shall determine that
such action would expose the Trustee to personal liability to existing holders.

     SECTION 2.5  Date and Denomination of Securities.

     The Securities shall be issuable in such form and in such denominations as
shall be specified as contemplated by Section 2.2.  In the absence of any such
specification with respect to the Securities of any series, the Securities of
such Series shall be issuable as registered Securities without coupons and in
the denominations of $25 and any multiple thereof.  The Securities shall be
numbered, lettered, or otherwise distinguished in such manner or in accordance
with such plans as the officers of the Company executing the same may determine
with the approval of the Trustee as evidenced by the execution and
authentication thereof.

     Every Security shall be dated the date of its authentication, shall bear
interest, if any, from such date and shall be payable on such dates, in each
case, as contemplated by Section 2.2.  The interest installment on any Security
that is payable, and is punctually paid or duly provided for, on any Interest
Payment Date for Securities of that series shall be paid to the Person in whose
name said Security (or one or more Predecessor Securities) is registered at the
close of business on the regular record date for such interest installment. In
the event that any Security of a particular series or portion thereof is called
for redemption and the redemption date is subsequent to a regular record date
with respect to any Interest Payment Date and prior to such Interest Payment
Date, interest on such Security will be paid upon presentation and surrender of
such Security as provided in Section 3.1.

     Any interest on any Security that is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date for any Security of the same
series (herein called "Defaulted Interest") shall forthwith cease to be payable
to the registered holder on the relevant regular record date by virtue of having
been such holder, and such Defaulted Interest shall be paid by the Company, at
its election, as provided in clause (a) or clause (b) below:

     (a)  The Company may make payment of any Defaulted Interest on Securities
to the Persons in whose names such Securities (or their respective Predecessor
Securities) are registered at the close of business on a special record date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner: the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest which
shall not be more than 15 nor less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the special record date therefor to be mailed, first class postage prepaid,
to each Securityholder at his or her address as it appears in the Security
Register, not less than 10 days prior to such special record date. Notice of the
proposed payment of such Defaulted Interest and the special record date therefor
having been mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names such Securities (or their respective Predecessor
Securities) are registered on such special record date and shall be no longer
payable pursuant to the following clause (b).

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

                                       9
<PAGE>

     Unless otherwise set forth in a Board Resolution of the Company or one or
more indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.2 hereof, the term "regular record date" as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of the
month in which an Interest Payment Date established for such series pursuant to
Section 2.2 hereof shall occur, if such Interest Payment Date is the last day of
a month, or the last day of the month immediately preceding the month in which
an Interest Payment Date established for such series pursuant to Section 2.2
hereof shall occur, if such Interest Payment Date is the fifteenth day of a
month, whether or not such date is a Business Day.

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

     SECTION 2.6  Transfer and Exchange.

     Subject to Section 2.2(m), Securities of any series may be exchanged for a
like aggregate principal amount of Securities of the same series of other
authorized denominations. Securities to be exchanged may be surrendered at the
principal office of the Trustee or at any office or agency to be maintained by
the Company for such purpose as provided in Section 3.2, and the Company or the
Trustee shall execute and register and the Trustee or the Authenticating Agent
shall authenticate and deliver in exchange therefor the Security or Securities
which the Securityholder making the exchange shall be entitled to receive. Upon
due presentment for registration of transfer of any Security of any series at
the principal office of the Trustee or at any office or agency of the Company
maintained for such purpose as provided in Section 3.2, the Company or the
Trustee shall execute and register and the Trustee or the Authenticating Agent
shall authenticate and deliver in the name of the transferee or transferees a
new Security or Securities of the same series for a like aggregate principal
amount. Registration or registration of transfer of any Security by the Trustee
or by any agent of the Company appointed pursuant to Section 3.2, and delivery
of such Security, shall be deemed to complete the registration or registration
of transfer of such Security.

     The Company shall cause to be kept at the corporate trust office of the
Trustee a register in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities.  Such register is herein sometimes referred to as the
"Securities Register."

     To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee, upon receipt of a Company Order, shall authenticate
Definitive Securities and Global Securities at the Security Registrar's request.
All Definitive Securities and Global Securities issued upon any registration of
transfer or exchange of Definitive Securities or Global Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the
same benefits under this Indenture, as the Definitive Securities or Global
Securities surrendered upon such registration of transfer or exchange.

     Upon surrender for registration of transfer of any Security at the office
or agency of the Company designated for that purpose the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of the same series of any
authorized denominations, of a like aggregate principal amount, of the same
original same issue date and Stated Maturity Date and having the same terms.

     No service charge shall be made to a holder for any registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any transfer tax or similar governmental charge payable in connection
therewith.

     The Company shall not be required to (i) issue, register the transfer of or
exchange Securities during a period beginning at the opening of business 15 days
before the day of mailing of a notice of redemption or any notice of selection
of Securities of such series for redemption; or (ii) register the transfer of or
exchange any Security of such series so selected for redemption in whole or in
part, except the unredeemed portion of any Security of such series being
redeemed in part.

                                       10
<PAGE>

     Prior to due presentment for the registration of a transfer of any
Security, the Trustee, the Company and any agent of the Trustee or the Company
may deem and treat the Person in whose name any Security is registered as the
absolute owner of such Security for the purpose of receiving payment of
principal of and premium, if any, and interest on such Securities, and for all
other purposes whatsoever, and none of the Trustee, the Company and any agents
of the Trustee or the Company shall be affected by notice afftecte by notice to
the contrary.

     SECTION 2.7  Replacement Securities.

     If any mutilated Security is surrendered to the Trustee, or the Company and
the Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Security, the Company shall issue and the Trustee shall
authenticate a replacement Security if the Trustee's requirements for
replacements of Securities are met.  An indemnity bond must be supplied by the
holder that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any agent thereof or any authenticating agent
from any loss that any of them may suffer if a Security is replaced.  The
Company or the Trustee may charge for its expenses in replacing a Security.

     Every replacement Security is an obligation of the Company and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Securities duly issued hereunder.

SECTION 2.8  Temporary Securities.

     Pending the preparation of Definitive Securities, the Company may execute,
and upon Company Order the Trustee shall authenticate and make available for
delivery, temporary Securities that are printed, lithographed, typewritten,
mimeographed or otherwise reproduced, in any authorized denomination,
substantially of the tenor of the Definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.

     If temporary Securities are issued, the Company shall cause Definitive
Securities to be prepared without unreasonable delay.  The Definitive Securities
shall be printed, lithographed or engraved, or provided by any combination
thereof, or in any other manner permitted by the rules and regulations of any
applicable securities exchange, all as determined by the officers executing such
Definitive Securities.  After the preparation of Definitive Securities, the
temporary Securities shall be exchangeable for Definitive Securities upon
surrender of the temporary Securities at the office or agency maintained by the
Company for such purpose pursuant to Section 3.2 hereof, without charge to the
Holder.  Upon surrender for cancellation of anyone or more temporary Securities,
the Company shall execute, and the Trustee shall authenticate and make available
for delivery, in exchange therefor the same aggregate principal amount of
Definitive Securities of authorized denominations.  Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as Definitive Securities.

SECTION 2.9   Cancellation.

     The Company at any time may deliver Securities to the Trustee for
cancellation.  The Trustee and no one else shall cancel all Securities
surrendered for registration of transfer, exchange, payment, replacement or
cancellation and shall retain or destroy cancelled Securities in accordance with
its normal practices (subject to the record retention requirement of the
Exchange Act) unless the Company directs that they be returned to it.  Subject
to Sections 2.6 and 2.7, the Company may not issue new Securities to replace
Securities that have been redeemed or paid or that have been delivered to the
Trustee for cancellation.

     SECTION 2.10  Global Securities.

     (a)  If the Company shall establish pursuant to Section 2.2 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section 2.4,
authenticate and deliver, a Global Security that (i) shall represent, and shall
be denominated in an amount equal to the aggregate principal amount of, all of
the outstanding Securities of such series, (ii) shall be registered in the name
of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the

                                       11
<PAGE>

Depositary's instruction and (iv) shall bear a legend substantially to the
following effect: "Except as otherwise provided in Section 2.10 of the
Indenture, this Security may be transferred, in whole but not in part, only to
another nominee of the Depositary or to a successor Depositary or to a nominee
of such successor Depositary."

     (b)  Notwithstanding the provisions of Section 2.6, the Global Security
of a series may be transferred, in whole but not in part and in the manner
provided in Section 2.6, only to another nominee of the Depositary for such
series or to a successor Depositary for such series selected or approved by the
Company or to a nominee of such successor Depositary.

     (c)  If at any time the Depositary for a series of the Securities
notifies the Company that it is unwilling or unable to continue as Depositary
for such series or if at any time the Depositary for such series shall no longer
be registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, as the case may be, this Section 2.10 shall
no longer be applicable to the Securities of such series and the Company will
execute, and subject to Section 2.6, the Trustee will authenticate and deliver,
the Definitive Securities of such series, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Security
of such series in exchange for such Global Security. In addition, the Company
may at any time determine that the Securities of any series shall no longer be
represented by a Global Security and that the provisions of this Section 2.10
shall no longer apply to the Securities of such series. In such event the
Company will execute and, subject to Section 2.6, the Trustee, upon receipt of
an Officers' Certificate evidencing such determination by the Company, will
authenticate and deliver the Definitive Securities of such series, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Definitive
Securities, in authorized denominations, the Global Security shall be cancelled
by the Trustee. Such Definitive Securities issued in exchange for the Global
Security pursuant to this Section 2.10(c) shall be registered in such names and
in such authorized denominations as the Depositary, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the
Trustee. The Trustee shall deliver such Definitive Securities to the Depositary
for delivery to the Persons in whose names such Definitive Securities are so
registered.

     SECTION 2.11  CUSIP Numbers.

     The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Securityholders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.  The Company will promptly notify
the Trustee of any change in the CUSIP numbers.

                                  ARTICLE III

                      PARTICULAR COVENANTS OF THE COMPANY

     SECTION 3.1   Payment of Principal and Interest.

     The Company covenants and agrees for the benefit of each series of the
Securities that it will duly and punctually pay or cause to be paid the
principal of and interest on each series of the Securities at the place, at the
respective times and in the manner provided herein.  Each installment of
interest on the Securities of any series may be paid by (i) mailing checks for
such interest payable to the order of the holder of Security entitled thereto as
they appear in the Security Register, or (ii) by wire transfer to an account
appropriately designated by the Holder entitled thereto, provided that proper
transfer instructions have been received in writing by the relevant record date.

                                       12
<PAGE>

     SECTION 3.2  Offices for Notices and Payments, etc.

     So long as any of the Securities remain outstanding, the Company will
maintain in the Borough of Manhattan, The City of New York, an office or agency
where the Securities of each series may be presented for payment, an office or
agency where the Securities of that series may be presented for registration of
transfer and for exchange as in this Indenture provided and an office or agency
where notices and demands to or upon the Company in respect of the Securities of
that series or of this Indenture may be served.  The Company will give to the
Trustee written notice of the location of any such office or agency and of any
change of location thereof.  Until otherwise designated from time to time by the
Company in a notice to the Trustee or specified as contemplated by Section 2.2,
any such office or agency for all of the above purposes shall be the Principal
Office of the Trustee.  In case the Company shall fail to maintain any such
office or agency in the Borough of Manhattan, The City of New York, or shall
fail to give such notice of the location or of any change in the location
thereof, presentations and demands may be made and notices may be served at the
Principal Office of the Trustee.

     In addition to any such office or agency, the Company may from time to time
designate one or more offices or agencies outside the Borough of Manhattan, The
City of New York, where the Securities may be presented for payment,
registration of transfer and for exchange in the manner provided in this
Indenture, and the Company may from time to time rescind such designation, as
the Company may deem desirable or expedient; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain any such office or agency in the Borough of Manhattan,
The City of New York, for the purposes above mentioned.  The Company will give
to the Trustee prompt written notice of any such designation or rescission
thereof.

     SECTION 3.3  Appointments to Fill Vacancies in Trustee's Office.

     The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 6.10, a Trustee, so
that there shall at all times be a Trustee hereunder.

     SECTION 3.4  Provision as to Paying Agent.

     (a)  If the Company shall appoint a paying agent other than the Trustee
with respect to the Securities of any series, it will cause such paying agent to
execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provision of this Section 3.4,

               (1) that it will hold all sums held by it as such agent for the
          payment of the principal of or interest on the Securities of such
          series (whether such sums have been paid to it by the Company or by
          any other obligor on the Securities of such series) in trust for the
          benefit of the holders of the Securities; and

               (2)  that it will give the Trustee notice of any failure by the
          Company (or by any other obligor on the Securities of such series) to
          make any payment of the principal of or interest on the Securities of
          such series when the same shall be due and payable.

     (b)  If the Company shall act as its own paying agent, it will, on or
before each due date of the principal of or interest on the Securities of any
series, set aside, segregate and hold in trust for the benefit of the holders of
the Securities of such series a sum sufficient to pay such principal or interest
so becoming due and will notify the Trustee of any failure to take such action
and of any failure by the Company (or by any other obligor under the Securities
of such series) to make any payment of the principal of or interest on the
Securities of such series when the same shall become due and payable.

     (c)  Anything in this Section 3.4 to the contrary notwithstanding, the
Company may, at any time, for the purpose of obtaining a satisfaction and
discharge with respect to one or more or all series of Securities hereunder, or
for any other reason, pay or cause to be paid to the Trustee all sums held in
trust for any such series by the Trustee or any paying agent hereunder, as
required by this Section 3.4, such sums to be held by the Trustee upon the
trusts herein contained.

                                       13
<PAGE>

     (d)  Anything in this Section 3.4 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 3.4 is subject to
Section 11.3 and Section 11.4.

     SECTION 3.5   Certificate to Trustee.

     The Company will deliver to the Trustee on or before 120 days after the end
of each fiscal year in each year, commencing with the first fiscal year in which
there shall be issued any Securities of any series under this Indenture, so long
as Securities of any series are outstanding hereunder, an Officers' Certificate,
one of the signers of which shall be the principal executive, principal
financial or principal accounting officer of the Company, stating that in the
course of the performance by the signers of their duties as officers of the
Company they would normally have knowledge of any default by the Company in the
performance of any covenants contained herein, stating whether or not they have
knowledge of any such default and, if so, specifying each such default of which
the signers have knowledge and the nature thereof.

     SECTION 3.6   Compliance with Consolidation Provisions.

     The Company will not, while any of the Securities remain outstanding,
consolidate with, or merge into, or merge into itself, or sell or convey all or
substantially all of its property to any other Person unless the provisions of
Article X hereof are complied with.

     SECTION 3.7   Limitation on Dividends.

     The Company will 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 Company's capital stock (which includes common and preferred stock)
(other than (a) dividends or distributions in shares of, or options, warrants or
rights to subscribe for or purchase shares of, Common Stock of the Company, (b)
any declaration of a dividend in connection with the implementation of a
stockholder's rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
as a result of a reclassification of any class or series of the Company's
capital stock solely into another class or series of the Company's capital
stock, (d) the purchase of fractional shares resulting from such
reclassification or pursuant to the conversion or exchange provisions of such
capital stock or any security convertible or exchangeable into shares of the
Company's capital stock, and (e) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Company's benefit plans for
its directors, officers or employees or any of the Company's dividend
reinvestment plans); (ii) make any payment of principal, premium, if any, or
interest on or repay or repurchase or redeem any debt securities of the Company
(including Other Debentures) that rank pari passu with or junior in right of
payment to the Securities; or (iii) make any guarantee payments (other than
payments under the Preferred Securities Guarantee) with respect to any guarantee
by the Company of the debt securities of any Subsidiary of the Company
(including Other Guarantees) if such guarantee ranks pari passu or junior in
right of payment to the Securities, if at such time (1) there shall have
occurred any event of which the Company has actual knowledge that (a) is, or
with the giving of notice or the lapse of time, or both, would constitute, an
Event of Default and (b) in respect of which the Company shall not have taken
reasonable steps to cure, or (2) if such Securities are held by the Property
Trustee, the Company shall be in default with respect to its payment obligations
under the Preferred Securities Guarantee.

     SECTION 3.8   Covenants as to Sterling Capital Trusts.

     In the event Securities are issued to a Sterling Capital Trust or a trustee
of such trust in connection with the issuance of Trust Securities by such
Sterling Capital Trust, for so long as such Trust Securities remain outstanding,
the Company: (i) will maintain 100% direct or indirect ownership of the Common
Securities of such Sterling Capital Trust; provided, however, that any successor
of the Company, permitted pursuant to Article X, may succeed to the Company's
ownership of such Common Securities; (ii) will use its reasonable efforts not to
voluntarily terminate, wind up or liquidate such Sterling Capital Trust except
with the prior approval of the Federal Reserve if then so required under
applicable capital guidelines or policies of the Federal Reserve, and except (a)
in connection with a distribution of Junior Subordinated Debentures to the
holders of the Trust Preferred Securities in liquidation of such Sterling
Capital Trust or (b) in connection with certain mergers, consolidations, or
amalgamations permitted by the Declaration of such Sterling Capital Trust; (iii)
will use its reasonable efforts to cause such Sterling Capital Trust (a) to
remain a business trust, except in connection with a distribution of Securities
to the holders of Trust Securities in

                                       14
<PAGE>

liquidation of such Sterling Capital Trust, the redemption of all of the Trust
Securities of such Sterling Capital Trust or certain mergers, consolidations or
amalgamations, each as permitted by the Declaration of such Sterling Capital
Trust, and (b) to otherwise continue to be treated as a grantor trust for United
States Federal income tax purposes; (iv) will use its reasonable efforts to
cause each holder of the Trust Securities of such Sterling Capital Trust to be
treated as owning an undivided beneficial interest in the Securities; and (v)
will use commercially reasonable efforts to maintain the eligibility of the
Preferred Securities issued by such Sterling Capital Trust for quotation or
listing on any national securities exchange or other organization on which the
Preferred Securities are then quoted or listed (including, if applicable, The
Nasdaq National Market) and use commercially reasonable efforts to keep the
Preferred Securities so quoted or listed for so long as the Preferred Securities
remain outstanding. For so long as any Securities remain outstanding, the
Company shall fulfill all reporting and filing obligations under the Exchange
Act, as applicable to companies having a class of securities registered under
Section 12(b) or 12(g) thereunder.

                                  ARTICLE IV

       SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

     SECTION 4.1   Securityholders' Lists.

     The Company covenants and agrees that it will furnish or cause to be
furnished to the Trustee:

     (a)  on a semi-annual basis on each regular record date for each series of
Securities, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Securityholders of such series of Securities as of
such record date; and

     (b)  at such other times as the Trustee may request in writing, within 30
days after the receipt by the Company, of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished,

except that, no such lists need be furnished so long as the Trustee is in
possession thereof by reason of its acting as Security registrar of such series.

     SECTION 4.2   Preservation and Disclosure of Lists.

     (a)  The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
each series of Securities (1) contained in the most recent list furnished to it
as provided in Section 4.1 or (2) received by it in the capacity of Securities
registrar (if so acting) hereunder. The Trustee may destroy any list furnished
to it as provided in Section 4.1 upon receipt of a new list so furnished.

     (b)  In case three or more holders of Securities of any series (hereinafter
referred to as "applicants") apply in writing to the Trustee and furnish to the
Trustee reasonable proof that each such applicant has owned a Security of such
series for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other holders of Securities of such series or with holders of
all Securities with respect to their rights under this Indenture and is
accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall within 5 Business Days
after the receipt of such application, at its election, either:

               (1)  afford such applicants access to the information preserved
          at the time by the Trustee in accordance with the provisions of
          subsection (a) of this Section 4.2, or

               (2)  inform such applicants as to the approximate number of
          holders of such series or all Securities, as the case may be, whose
          names and addresses appear in the information preserved at the time by
          the Trustee in accordance with the provisions of subsection (a) of
          this Section 4.2, and as to the approximate cost of mailing to such
          Securityholders the form of proxy or other communication, if any,
          specified in such application.

                                       15
<PAGE>

     If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Securityholder of such series or all Securities, as the case may
be, whose name and address appear in the information preserved at the time by
the Trustee in accordance with the provisions of subsection (a) of this Section
4.2 a copy of the form of proxy or other communication which is specified in
such request with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing, unless within five days after such tender, the
Trustee shall mail to such applicants and file with the Commission, together
with a copy of the material to be mailed, a written statement to the effect
that, in the opinion of the Trustee, such mailing would be contrary to the best
interests of the holders of Securities of such series or all Securities, as the
case may be, or would be in violation of applicable law.  Such written statement
shall specify the basis of such opinion.  If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, the Trustee shall
mail copies of such material to all such Securityholders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

     (c)  Each and every holder of Securities, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any paying agent shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the holders
of Securities in accordance with the provisions of subsection (b) of this
Section 4.2, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under said subsection (b).

     SECTION 4.3  Reports by the Company.

     (a)  The Company covenants and agrees to file with the Trustee, within 15
days after the date on which the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as said
Commission may from time to time by rules and regulations prescribe) which the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.

     (b)  The Company covenants and agrees to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by said Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Indenture as may be required from time to time by such rules and
regulations.

     (c)  The Company covenants and agrees to transmit by mail to all holders of
Securities, as the names and addresses of such holders appear upon the Security
Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to be filed by the
Company pursuant to subsections (a) and (b) of this Section 4.3 as may be
required by rules and regulations prescribed from time to time by the
Commission.

     (d)  Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

                                       16
<PAGE>

     SECTION 4.4  Reports by the Trustee.

     (a)  The Trustee shall transmit to Securityholders such reports
concerning the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the
Trustee shall, within sixty days after each September 15 following the date of
this Indenture, commencing September 15, 2001, deliver to Securityholders a
brief report, dated as of such September 15, which complies with the provisions
of such Section 313(a).

     (b)  A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with each stock exchange, if any, upon
which the Securities are listed, with the Commission and with the Company. The
Company will promptly notify the Trustee when the Securities are listed on any
stock exchange.

                                   ARTICLE V

        REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

     SECTION 5.1   Events of Default.

     Unless otherwise provided with respect to a series of the Securities in the
indenture supplemental hereto providing for the creation of that series, each of
the following events of default shall constitute an Event of Default with
respect to Securities of such series, as shall any other events as may be
established with respect to Securities of that series as contemplated by Section
2.2 (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of an
administrative or governmental body):

     (a)  default in the payment of any interest upon any Securities of that
series or any Other Debentures when it becomes due and payable, and continuance
of such default for a period of 30 days; provided, however, that a valid
extension of an interest payment period by the Company in accordance with the
terms of any particular series of Securities established as contemplated in this
Indenture, shall not constitute a default in the payment of interest for this
purpose; or

     (b)  default in the payment of all or any part of the principal on any
Securities of that series or any Other Debentures as and when the same shall
become due and payable either at maturity, upon prepayment or redemption, by
declaration of acceleration of maturity or otherwise; or

     (c)  default in the performance, or breach, of any covenant or warranty
of the Company in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with and other than those set forth exclusively in the terms of (and
specifically limited to) any particular series of Securities established as
contemplated in this Indenture), and continuance of such default or breach for a
period of 90 days after there has been given, by registered or certified mail,
to the Company by the Trustee or to the Company and the Trustee by the holders
of at least 25% in aggregate principal amount of the outstanding Securities a
written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a Notice of Default hereunder; or

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

     (e)  the Company shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, shall
consent to the entry of an order for relief in an involuntary case under any
such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Company or of any substantial part of its property, or

                                       17
<PAGE>

shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due.

     If an Event of Default with respect to any series of Securities at the time
outstanding occurs and is continuing, then in every such case the Trustee or the
holders of not less than 25% in aggregate principal amount of the Securities of
that series then outstanding may declare the principal amount of all Securities
of that series to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by the holders of the outstanding
Securities of that series), and upon any such declaration the same shall become
immediately due and payable.  Notwithstanding the foregoing, if an Event of
Default specified in clause (d) or (e) of Section 5.1 occurs, the Securities of
such series then outstanding shall be due and payable immediately without
further action or notice.

     The foregoing provisions, however, are subject to the condition that if, at
any time after the principal of the Securities of any series (or of all the
Securities, as the case may be) shall have been so declared due and payable, and
before any judgment or decree for the payment of the moneys due shall have been
obtained or entered as hereinafter provided, (i) the Company shall pay or shall
deposit with the Trustee a sum sufficient to pay (A) all matured installments of
interest upon all the Securities of such series (or of all the Securities, as
the case may be) and the principal of any and all Securities of such series (or
of all the Securities, as the case may be) which shall have become due otherwise
than by acceleration (with interest upon such principal and, to the extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest, at the same rate as the rate of interest specified in
the Securities of that series (or at the respective rates of interest of all the
Securities, as the case may be) to the date of such payment or deposit) and (B)
such amount as shall be sufficient to cover compensation due to the Trustee and
each predecessor Trustee, their respective agents, attorneys and counsel,
pursuant to Section 6.6, and (ii) any and all Events of Default under this
Indenture, other than the non-payment of the principal of the Securities which
shall have become due solely by such declaration of acceleration, shall have
been cured, waived or otherwise remedied as provided herein, then, in every such
case, the holders of a majority in aggregate principal amount of the Securities
of such series (or of all the Securities, as the case may be) then outstanding,
by written notice to the Company and to the Trustee, may rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment
shall extend to or shall affect any subsequent default or shall impair any right
consequent thereon; provided, however, that if the Securities of such series (or
all of the Securities, as the case may be) are held by the Property Trustee,
such waiver or rescission and annulment to such waiver shall not be effective
until the holders of a majority in aggregate liquidation amount of Trust
Securities of such Sterling Capital Trust shall have consented to such waiver or
rescission and annulment to such waiver.

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

     SECTION 5.2   Payment of Securities on Default; Suit Therefor.

     The Company covenants that (a) in case default shall be made in the payment
of any installment of interest upon any of the Securities of a series as and
when the same shall become due and payable, and such default shall have
continued for a period of 30 days, or (b) in case default shall be made in the
payment of the principal of any of the Securities of a series as and when the
same shall have become due and payable, whether at maturity of the Securities of
that series or upon prepayment or redemption or by declaration or otherwise,
then, upon demand of the Trustee, the Company will pay to the Trustee, for the
benefit of the holders of the Securities of that series, the whole amount that
then shall have become due and payable on all such Securities of that series for
principal or interest with interest upon the overdue principal and (to the
extent that payment of such interest is enforceable under applicable law and, if
the Securities are held by Sterling Capital Trust or a trustee of such trust,
without duplication of any other amounts paid by the Sterling Capital Trust or a
trustee in respect thereof) upon the overdue installments of interest at the
rate borne by the Securities of that series; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including a reasonable compensation to the Trustee, its agents,
attorneys and counsel, and any other amount due to the Trustee pursuant to
Section 6.6.

                                       18
<PAGE>

     In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on such
Securities and collect in the manner provided by law out of the property of the
Company or any other obligor on such Securities, wherever situated, the moneys
adjudged or decreed to be payable.

     In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Securities under Title
11, United States Code, or any other applicable law, or in case a receiver or
trustee shall have been appointed for the property of the Company or such other
obligor, or in the case of any other similar judicial proceedings relative to
the Company or other obligor upon the Securities, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Securities of any series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section 5.2, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and interest owing and unpaid in respect of the Securities
of such series and, in case of any judicial proceedings, to file such proofs of
claim and other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for amounts due to the
Trustee pursuant to 6.6) and of the Securityholders allowed in such judicial
proceedings relative to the Company or any other obligor on the Securities of
any series, or to the creditors or property of the Company or such other
obligor, unless prohibited by applicable law and regulations, to vote on behalf
of the holders of the Securities of any series in any election of a trustee or a
standby trustee in arrangement, reorganization, liquidation or other bankruptcy
or insolvency proceedings or person performing similar functions in comparable
proceedings, and to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute the same after the deduction
of its charges and expenses; and any receiver, assignee or trustee in bankruptcy
or reorganization is hereby authorized by each of the Securityholders to make
such payments to the Trustee, and, in the event that the Trustee shall consent
to the making of such payments directly to the Securityholders, to pay to the
Trustee such amounts as shall be sufficient to cover reasonable compensation to
the Trustee, each predecessor Trustee and their respective agents, attorneys and
counsel, and all other amounts due to the Trustee pursuant to Section 6.6.

     Nothing herein contained shall be construed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities of any series or the rights of any holder thereof or to authorize the
Trustee to vote in respect of the claim of any Securityholder in any such
proceeding.

     All rights of action and of asserting claims under this Indenture, or under
any of the Securities, may be enforced by the Trustee without the possession of
any of the Securities, or the production thereof on any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall be for the ratable benefit of the holders of the
Securities.

     In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the holders
of the Securities, and it shall not be necessary to make any holders of the
Securities parties to any such proceedings.

     SECTION 5.3   Application of Moneys Collected by Trustee.

     Any moneys collected by the Trustee shall be applied in the following
order, at the date or dates fixed by the Trustee for the distribution of such
moneys, upon presentation of the several Securities in respect of which moneys
have been collected, and stamping thereon the payment, if only partially paid,
and upon surrender thereof if fully paid:

     First:  To the payment of costs and expenses of collection applicable to
the Securities of such series and all other amounts due to the Trustee under
Section 6.6;

                                       19
<PAGE>

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

     Third:  In case the principal of the outstanding Securities in respect of
which moneys have been collected shall not have become due and be unpaid, to the
payment of the amounts then due and unpaid upon Securities of such series for
principal of and interest on the Securities of such series, in respect of which
or for the benefit of which money has been collected, ratably, without
preference of priority of any kind, according to the amounts due on such
Securities for principal and interest, respectively; and

     Fourth:  To the Company.

     SECTION 5.4  Proceedings by Securityholders.

     No holder of any Security of any series shall have any right by virtue of
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless such holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof with
respect to the Securities of such series specifying such Event of Default, as
hereinbefore provided, and unless also the holders of not less than 25% in
aggregate principal amount of the Securities of that series then outstanding
shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity shall have
failed to institute any such action, suit or proceeding, it being understood and
intended, and being expressly covenanted by the taker and holder of every
Security with every other taker and holder and the Trustee, that no one or more
holders of Securities of any series shall have any right in any manner whatever
by virtue of or by availing of any provision of this Indenture to affect,
disturb or prejudice the rights of any other holder of Securities, or to obtain
or seek to obtain priority over or preference to any other such holder, or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal, ratable and common benefit of all holders of Securities of the
applicable series.

     Notwithstanding any other provisions in this Indenture, however, the right
of any holder of any Security to receive payment of the principal of and
interest on such Security, on or after the same shall have become due and
payable, or to institute suit for the enforcement of any such payment, shall not
be impaired or affected without the consent of such holder and by accepting a
Security hereunder it is expressly understood, intended and covenanted by the
taker and holder of every Security of such series with every other such taker
and holder and the Trustee, that no one or more holders of Securities of such
series shall have any right in any manner whatsoever by virtue or by availing of
any provision of this Indenture to affect, disturb or prejudice the rights of
the holders of any other such Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities of such series.  For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

     The Company and the Trustee acknowledge that pursuant to each Declaration,
the holders of Preferred Securities are entitled, in the circumstances and
subject to the limitations set forth therein, to commence a Direct Action with
respect to any Event of Default under this Indenture and the Securities.

     SECTION 5.5   Proceedings by Trustee.

     In case an Event of Default occurs with respect to Securities and is
continuing, the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

                                       20
<PAGE>

     SECTION 5.6   Remedies Cumulative and Continuing.

     All powers and remedies given by this Article V to the Trustee or to the
Securityholders shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any other powers and remedies available to the Trustee or the
holders of the Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to the Securities of any series,
and no delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 5.4, every power and remedy
given by this Article V or by law to the Trustee or to the Securityholders may
be exercised from time to time, and as often as shall be deemed expedient, by
the Trustee or by the Securityholders.

     SECTION 5.7   Direction of Proceedings and Waiver of Defaults by
                   Majority of Securityholders.

     The holders of a majority in aggregate principal amount of the Securities
of any or all series affected (voting as one class) at the time outstanding
shall have the right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee; provided, however, that (subject to the
provisions of Section 6.1) the Trustee shall have the right to decline to follow
any such direction if the Trustee shall determine that the action so directed
would be unjustly prejudicial to the holders not taking part in such direction
or if the Trustee being advised by counsel determines that the action or
proceeding so directed may not lawfully be taken or if the Trustee in good faith
by its board of directors or trustees, executive committee, or a trust committee
of directors or trustees and/or Responsible Officers shall determine that the
action or proceedings so directed would involve the Trustee in personal
liability.  Prior to any declaration accelerating the maturity of any series of
the Securities, the holders of a majority in aggregate principal amount of the
Securities of that series at the time outstanding may on behalf of the holders
of all of the Securities of such series waive any past default or Event of
Default and its consequences except a default (a) in the payment of principal of
or interest on any of the Securities or (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of the
holder of each Security affected; provided, however, that if the Securities are
held by a Sterling Capital Trust or a Property Trustee of such Trust, such
waiver or modification to such waiver shall not be effective until the holders
of a majority in aggregate liquidation amount of Trust Securities of the
applicable Sterling Capital Trust shall have consented to such waiver or
modification to such waiver; provided further, that if the consent of the holder
of each outstanding Security is required, such waiver shall not be effective
until each holder of the Trust Securities of the applicable Sterling Capital
Trust shall have consented to such waiver.  Upon any such waiver, the default
covered thereby shall be deemed to be cured for all purposes of this Indenture
and the Company, the Trustee and the holders of the Securities of such series
shall be restored to their former positions and rights hereunder, respectively;
but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.  Whenever any default or Event of Default hereunder
shall have been waived as permitted by this Section 5.7, said default or Event
of Default shall for all purposes of the Securities of that series (or of all
the Securities, as the case may be) and this Indenture be deemed to have been
cured and to be not continuing.

     SECTION 5.8   Notice of Defaults.

     (a)  The Trustee shall, within 90 days after the occurrence of a default
known to a Responsible Officer of the Trustee with respect to the Securities of
any series mail to all Securityholders of that series, as the names and
addresses of such holders appear upon the Security Register, notice of all
defaults with respect to that series actually known to a Responsible Officer of
the Trustee, unless such defaults shall have been cured before the giving of
such notice (the term defaults for the purpose of this Section 5.8 being hereby
defined to be the events specified in clauses (a), (b), (c), (d) and (e) of
Section 5.1, not including periods of grace, if any, provided for therein, and
irrespective of the giving of written notice specified in clause (c) of Section
5.1); and provided that, except in the case of default in the payment of the
principal of or interest on any of the Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as a Responsible
Officer of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Securityholders of such series; and provided
further, that in the case of any default of the character specified in Section
5.1(c), no such notice to Securityholders of such series shall be given until at
least 60 days after the occurrence thereof, but shall be given within 90 days
after such occurrence.

                                       21
<PAGE>

     (b)  Within five Business Days after the occurrence of any Event of Default
actually known to a Responsible Officer of the Trustee with respect to any
series the Trustee shall transmit notice of such Event of Default to all
Securityholders of such series, unless such Event of Default shall have been
cured or waived.

     SECTION 5.9  Undertaking to Pay Costs.

     All parties to this Indenture agree, and each holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 5.9 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders of any series, holding in the aggregate more than 10% in
aggregate principal amount of the Securities of that series outstanding, or to
any suit instituted by any Securityholder for the enforcement of the payment of
the principal of or interest on any Security against the Company on or after the
same shall have become due and payable.

     SECTION 5.10  Requirement to Post Bond.  Notwithstanding anything
contained herein to the contrary, the Trustee shall not be bound, obligated or
required to take any action at the request or direction of any Securityholder
pursuant to this Indenture if such Securityholder shall not have made available
to the Trustee, security or indemnity reasonably acceptable to the Trustee
against costs, expenses and liabilities (including fees and expenses of its
agents and counsel) which might be incurred by it in compliance with the written
request or direction.

                                  ARTICLE VI

                             CONCERNING THE TRUSTEE

     SECTION 6.1  Duties and Responsibilities of Trustee.

     With respect to the holders of any series of Securities issued hereunder,
the Trustee, prior to the occurrence of an Event of Default with respect to
Securities of that series of which a Responsible Officer of the Trustee has
actual knowledge and after the curing or waiving of all Events of Default which
may have occurred with respect to Securities of that series, undertakes to
perform such duties and only such duties as are specifically set forth in this
Indenture.  In case an Event of Default with respect to Securities of a series
has occurred (which has not been cured or waived), the Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise
or use under the circumstances in the conduct of his or her own affairs.

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

     (a)  prior to the occurrence of an Event of Default with respect to
Securities of a series and after the curing or waiving of all Events of Default
which may have occurred,

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

               (2)  in the absence of bad faith on the part of the Trustee, the
          Trustee may conclusively rely, as to the truth of the statements and
          the correctness of the opinions expressed therein, upon any
          certificates or opinions furnished to the Trustee and conforming to
          the requirements of this

                                       22
<PAGE>

          Indenture; but, in the case of any such certificates or opinions which
          by any provision hereof are specifically required to be furnished to
          the Trustee, the Trustee shall be under a duty to examine the same to
          determine whether or not they conform to the requirements of this
          Indenture;

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

     (c)  the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Securityholders pursuant to Section 5.7, relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

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

     SECTION 6.2  Reliance on Documents, Opinions, etc.

     Except as otherwise provided in :

     (a)  the Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, note,
debenture or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;

     (b)  any request, direction, order or demand of the Company mentioned
herein may be sufficiently evidenced by an Officers' Certificate (unless other
evidence in respect thereof be herein specifically prescribed); and any Board
Resolution may be evidenced to the Trustee by a copy thereof certified by the
Secretary or an Assistant Secretary of the Company;

     (c)  the Trustee may consult with counsel of its selection and any advice
or Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in accordance with such advice or Opinion of Counsel;

     (d)  the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders, pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable and sufficient security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby;

     (e)  the Trustee shall not be liable for any action taken or omitted by
it in good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default with respect to a series of Securities of which a Responsible
Officer of the Trustee has actual knowledge (that has not been cured or waived),
to exercise with respect to Securities of that series such of the rights and
powers vested in it by this Indenture, and to use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs;

     (f)  the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, debenture,
coupon or other paper or document, unless requested in writing to do so by the
holders of a majority in aggregate principal amount of the outstanding
Securities of the series affected thereby; provided, however, that if the
payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the

                                       23
<PAGE>

making of such investigation is, in the opinion of the Trustee, not reasonably
assured to the Trustee by the security afforded to it by the terms of this
Indenture, the Trustee may require reasonable indemnity against such expense or
liability as a condition to so proceeding;

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

     (h)  the Trustee shall not be charged with knowledge of any Default or
Event of Default with respect to the Securities of any series unless (1) such
default is a default under Section 5.1(a) and Section 5.1(b) of the Indenture,
(2) a Responsible Officer shall have actual knowledge of such Default or Event
of Default or (3) written notice of such Default or Event of Default shall have
been given to the Trustee by the Company or any other obligor on the Securities
of such series or by any holder of the Securities of that series.

     SECTION 6.3  No Responsibility for Recitals, etc.

     The recitals contained herein and in the Securities (except in the
certificate of authentication of the Trustee or the Authenticating Agent) shall
be taken as the statements of the Company, and the Trustee and the
Authenticating Agent assume no responsibility for the correctness of the same.
The Trustee and the Authenticating Agent make no representations as to the
validity or sufficiency of this Indenture or of the Securities.  The Trustee and
the Authenticating Agent shall not be accountable for the use or application by
the Company of any Securities or the proceeds of any Securities authenticated
and delivered by the Trustee or the Authenticating Agent in conformity with the
provisions of this Indenture.

     SECTION 6.4   Trustee, Authenticating Agent, Paying Agents, Transfer
                   Agents or Registrar May Own Securities.

     The Trustee or any Authenticating Agent or any paying agent or any transfer
agent or any Security registrar, in its individual or any other capacity, may
become the owner or pledgee of Securities with the same rights it would have if
it were not Trustee, Authenticating Agent, paying agent, transfer agent or
Security registrar.

     SECTION 6.5   Moneys to be Held in Trust.

     Subject to the provisions of Section 11.4, all moneys received by the
Trustee or any paying agent shall, until used or applied as herein provided, be
held in trust for the purpose for which they were received, but need not be
segregated from other funds except to the extent required by law. The Trustee
and any paying agent shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.
So long as no Event of Default shall have occurred and be continuing, all
interest allowed on any such moneys shall be paid from time to time upon the
written order of the Company, signed by the Chairman of the Board of Directors,
the President or a Vice President or the Treasurer or an Assistant Treasurer of
the Company.

     SECTION 6.6   Compensation and Expenses of Trustee.

     The Company, as issuer of Securities under this Indenture, covenants and
agrees to pay to the Trustee from time to time, and the Trustee shall be
entitled to, such compensation as shall be agreed to in writing between the
Company and the Trustee (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust), and the Company
will pay or reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may
arise from its negligence or bad faith.  The Company also covenants to indemnify
each of the Trustee or any predecessor Trustee (and its officers, agents,
directors and employees) for, and to hold it harmless against, any and all loss,
damage, claim, liability or expense including taxes (other than taxes based on
the income of the Trustee) incurred without negligence or bad faith on the part
of the Trustee and arising out of or in connection with the acceptance or

                                       24
<PAGE>

administration of this trust, including the costs and expenses of defending
itself against any claim of liability in the premises.  The obligations of the
Company under this Section 6.6 to compensate and indemnify the Trustee and to
pay or reimburse the Trustee for expenses, disbursements and advances shall
constitute additional indebtedness hereunder.  Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the benefit of the holders of particular Securities.

     When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.1(d) or Section 5.1(e), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

     The provisions of this Section shall survive the resignation or removal of
the Trustee and the defeasance or other termination of this Indenture.

     SECTION 6.7  Officers' Certificate as Evidence.

     Except as otherwise provided in Section 6.1 and Section 6.2, whenever in
the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
omitting any action hereunder, such matter (unless other evidence in respect
thereof is herein specifically prescribed) may, in the absence of negligence or
bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers' Certificate delivered to the Trustee, and such
certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken or omitted by
it under the provisions of this Indenture upon the faith thereof.

     SECTION 6.8  Conflicting Interest of Trustee.

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

     SECTION 6.9   Eligibility of Trustee.

     The Trustee hereunder shall at all times be a corporation organized and
doing business under the laws of the United States of America or any state or
territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the Commission authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000) and subject to supervision or
examination by Federal, state, territorial, or District of Columbia authority.
If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 6.9 the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.

     The Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee.

     In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 6.9, the Trustee shall resign immediately in
the manner and with the effect specified in Section 6.10.

     SECTION 6.10   Resignation or Removal of Trustee.

     (a)  The Trustee, or any trustee or trustees hereafter appointed, may at
any time resign with respect to one or more or all series of Securities by
giving written notice of such resignation to the Company and by mailing notice
thereof to the holders of the applicable series of Securities at their addresses
as they shall appear on the Security Register. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee or trustees
by written instrument, in duplicate, one copy of which instrument shall be
delivered to the

                                       25
<PAGE>

resigning Trustee and one copy to the successor trustee. If no successor trustee
shall have been so appointed with respect to any series of Securities and have
accepted appointment within 60 days after the mailing of such notice of
resignation to the affected Securityholders, the resigning Trustee may petition
any court of competent jurisdiction for the appointment of a successor trustee,
or any Securityholder who has been a bona fide holder of a Security or
Securities of the applicable series for at least six months may, subject to the
provisions of Section 5.9, on behalf of himself and all others similarly
situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

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

               (1)  the Trustee shall fail to comply with the provisions of
          Section 6.8 after written request therefor by the Company or by any
          Securityholder who has been a bona fide holder of a Security or
          Securities for at least six months, or

               (2)  the Trustee shall cease to be eligible in accordance with
          the provisions of Section 6.9 and shall fail to resign after written
          request therefor by the Company or by any such Securityholder, or

               (3)  the Trustee shall become incapable of acting, or shall be
          adjudged a bankrupt or insolvent, or a receiver of the Trustee or of
          its property shall be appointed, or any public officer shall take
          charge or control of the Trustee or of its property or affairs for the
          purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Company may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 5.9, any
Securityholder who has been a bona fide holder of a Security or Securities of
the applicable series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor trustee.  Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

     (c)  The holders of a majority in aggregate principal amount of the
Securities of any series at the time outstanding may at any time remove the
Trustee with respect to such series and nominate a successor trustee with
respect to the applicable series of Securities or all series, as the case may
be, which shall be deemed appointed as successor trustee with respect to the
applicable series unless within 10 days after such nomination the Company
objects thereto, or if no successor trustee shall have been so appointed and
shall have accepted appointment within 30 days after such removal, in which case
the Trustee so removed or any Securityholder of the applicable series, upon the
terms and conditions and otherwise as in subsection(a) of this Section 6.10
provided, may petition any court of competent jurisdiction for an appointment of
a successor trustee with respect to such series.

     (d)  Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 6.10 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 6.11.

     (e)  The Company shall pay the Trustee all amounts owed to such Trustee
pursuant to this Indenture upon the resignation or removal of the Trustee.

     SECTION 6.11   Acceptance by Successor Trustee.

     Any successor trustee appointed as provided in Section 6.10 shall execute,
acknowledge and deliver to the Company and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the retiring trustee with respect to all or any applicable series
shall become effective and such successor trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, duties and
obligations with respect to such series of its predecessor hereunder, with like
effect as if originally named as trustee herein; but, nevertheless, on the
written request of the Company or of the successor trustee, the trustee

                                       26
<PAGE>

ceasing to act shall, upon payment of any amounts then due it pursuant to the
provisions of Section 6.6, execute and deliver an instrument transferring to
such successor trustee all the rights and powers of the trustee so ceasing to
act and shall duly assign, transfer and deliver to such successor trustee all
property and money held by such retiring trustee thereunder. Upon request of any
such successor trustee, the Company shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section
6.6.

     If a successor trustee is appointed with respect to the Securities of one
or more (but not all) series, the Company, the retiring trustee and each
successor trustee with respect to the Securities of any applicable series shall
execute and deliver an indenture supplemental hereto which shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring trustee with respect to the
Securities of any series as to which the predecessor trustee is not retiring
shall continue to be vested in the predecessor trustee, and shall add to or
change any of the provisions of this Indenture as shall be necessary to provide
for or facilitate the administration of the trustee hereunder by more than one
trustee, it being understood that nothing herein or in such supplemental
indenture shall constitute such trustees co-trustees of the same trust and that
each such trustee shall be trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such trustee.

     No successor trustee shall accept appointment as provided in this Section
6.11 unless at the time of such acceptance such successor trustee shall be
qualified under the provisions of Section 6.8 and eligible under the provisions
of Section 6.9.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 6.11, the Company shall mail notice of the succession of such trustee
hereunder to the holders of Securities of any applicable series at their
addresses as they shall appear on the Security Register.  If the Company fails
to mail such notice within 10 days after the acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be mailed at
the expense of the Company.  No Trustee shall have any liability for any actions
taken or omitted to be taken by any successor trustee.

     SECTION 6.12   Succession by Merger, etc.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder without
the execution or filing of any paper or any further act on the part of any of
the parties hereto.

     In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any Securities of any series shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such
Securities so authenticated; and in case at that time any of the Securities of
any series shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
in the name of the successor trustee; and in all such cases such certificates
shall have the full force which the Securities of that series or this Indenture
elsewhere provides that the certificate of the Trustee shall have; provided,
however, that the right to adopt the  certificate of authentication of any
predecessor Trustee or authenticate Securities of any series in the name of any
predecessor Trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

     SECTION 6.13   Limitation on Rights of Trustee as a Creditor.

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

                                       27
<PAGE>

     SECTION 6.14   Authenticating Agents

     There may be one or more Authenticating Agents appointed by the Trustee
upon the request of the Company with power to act on its behalf and subject to
its direction in the authentication and delivery of Securities of any series
issued upon exchange or transfer thereof as fully to all intents and purposes as
though any such Authenticating Agent had been expressly authorized to
authenticate and deliver Securities of such series; provided, that the Trustee
shall have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of
Securities of any series.  Any such Authenticating Agent shall at all times be a
corporation organized and doing business under the laws of the United States or
of any state or territory thereof or of the District of Columbia authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of at least $50,000,000 and being subject to supervision or examination
by Federal, state, territorial or District of Columbia authority.  If such
corporation publishes reports of condition at least annually pursuant to law or
the requirements of such authority, then for the purposes of this Section 6.14
the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published.  If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect herein specified in this Section.

     Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate trust business
of any Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, if such successor corporation is otherwise eligible under this
Section 6.14 without the execution or filing of any paper or any further act on
the part of the parties hereto or such Authenticating Agent.

     Any Authenticating Agent may at any time resign with respect to one or more
or all series of Securities by giving written notice of resignation to the
Trustee and to the Company.  The Trustee may at any time terminate the agency of
any Authenticating Agent with respect to one or more or all series of Securities
by giving written notice of termination to such Authenticating Agent and to the
Company.  Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be
eligible under this Section 6.14, the Trustee may, and upon the request of the
Company shall, promptly appoint a successor Authenticating Agent with respect to
the applicable series eligible under this Section 6.14, shall give written
notice of such appointment to the Company and shall mail notice of such
appointment to all holders of the applicable series of Securities as the names
and addresses of such holders appear on the Security Register.  Any successor
Authenticating Agent with respect to all or any series upon acceptance of its
appointment hereunder shall become vested with all rights, powers, duties and
responsibilities with respect to such series of its predecessor hereunder, with
like effect as if originally named as Authenticating Agent herein.

     The Company, as borrower, agrees to pay to any Authenticating Agent from
time to time reasonable compensation for its services.  Any Authenticating Agent
shall have no responsibility or liability for any action taken by it as such in
accordance with the directions of the Trustee.

                                  ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

     SECTION 7.1   Action by Securityholders.

     Whenever in this Indenture it is provided that the holders of a specified
percentage in aggregate principal amount of the Securities of any or all series
may take any action (including the making of any demand or request, the giving
of any notice, consent or waiver or the taking of any other action), the fact
that at the time of taking any such action the holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any
number of instruments of similar tenor executed by such Securityholders in
person or by agent or proxy appointed in writing, or (b) by the record of such
holders of Securities voting in favor thereof at any meeting of such

                                       28
<PAGE>

Securityholders duly called and held in accordance with the provisions of
Article VIII, or (c) by a combination of such instrument or instruments and any
such record of such a meeting of such Securityholders.

     If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so.  If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

     SECTION 7.2   Proof of Execution by Securityholders.

     Subject to the provisions of Section 6.1, Section 6.2, and Section 8.5,
proof of the execution of any instrument by a Securityholder or his agent or
proxy shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee.  The ownership of Securities shall be proved by the
Security Register or by a certificate of the Security registrar.  The Trustee
may require such additional proof of any matter referred to in this Section as
it shall deem necessary.

     The record of any Securityholders' meeting shall be proved in the manner
provided in Section 8.6.

     SECTION 7.3   Who Are Deemed Absolute Owners.

     Prior to due presentment for registration of transfer of any Security, the
Company, the Trustee, any Authenticating Agent, any paying agent, any transfer
agent and any Security registrar may deem the person in whose name such Security
shall be registered upon the Security Register to be, and may treat him as, the
absolute owner of such Security (whether or not such Security shall be overdue)
for the purpose of receiving payment of or on account of the principal of and
interest on such Security and for all other purposes; and neither the Company
nor the Trustee nor any Authenticating Agent nor any paying agent nor any
transfer agent nor any Security registrar shall be affected by any notice to the
contrary.  All such payments so made to any holder for the time being or upon
his order shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any
such Security.

     SECTION 7.4   Securities Owned by Company Deemed Not Outstanding.

     In determining whether the holders of the requisite aggregate principal
amount of Securities have concurred in any direction, consent or waiver under
this Indenture, Securities which are owned by the Company or any other obligor
on the Securities or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
other obligor on the Securities shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided that for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, consent or waiver, only Securities which a Responsible Officer
of the Trustee actually knows are so owned shall be so disregarded.  Securities
so owned which have been pledged in good faith may be regarded as outstanding
for the purposes of this Section 7.4 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee's right to vote such Securities and that
the pledgee is not the Company or any such other obligor or Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any such other obligor. In the case of a dispute as
to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

                                       29
<PAGE>

     SECTION 7.5   Revocation of Consents; Future Holders Bound.

     At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 7.1, of the taking of any action by the holders of the
percentage in aggregate principal amount of the Security specified in this
Indenture in connection with such action, any holder of a Security (or any
Security issued in whole or in part in exchange or substitution therefor),
subject to Section 7.1, the serial number of which is shown by the evidence to
be included in the group of Securities the holders of which have consented to
such action may, by filing written notice with the Trustee at its principal
office and upon proof of holding as provided in Section 7.2, revoke such action
so far as concerns such Security (or so far as concerns the principal amount
represented by any exchanged or substituted Security).  Except as aforesaid any
such action taken by the holder of any Security shall be conclusive and binding
upon such holder and upon all future holders and owners of such Security, and of
any Security issued in exchange or substitution therefor, irrespective of
whether or not any notation in regard thereto is made upon such Security or any
Security issued in exchange or substitution therefor.

                                 ARTICLE VIII

                           SECURITYHOLDERS' MEETINGS

     SECTION 8.1   Purposes of Meetings.

     A meeting of Securityholders of any or all series may be called at any time
and from time to time pursuant to the provisions of this Article VIII for any of
the following purposes:

     (a)  to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default hereunder
and its consequences, or to take any other action authorized to be taken by
Securityholders pursuant to any of the provisions of Article V;

     (b)  to remove the Trustee and nominate a successor trustee pursuant to the
provisions of Article VI;

     (c)  to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 9.2; or

     (d)  to take any other action authorized to be taken by or on behalf of the
holders of any specified aggregate principal amount of such Securities under any
other provision of this Indenture or under applicable law.

     SECTION 8.2   Call of Meetings by Trustee.

     The Trustee may at any time call a meeting of Securityholders of any or all
series to take any action specified in Section 8.1, to be held at such time and
at such place in the Borough of Manhattan, The City of New York, as the Trustee
shall determine.  Notice of every meeting of the Securityholders of any or all
series, setting forth the time and the place of such meeting and in general
terms the action proposed to be taken at such meeting, shall be mailed to
holders of Securities of each series affected at their addresses as they shall
appear on the Securities Register.  Such notice shall be mailed not less than 20
nor more than 180 days prior to the date fixed for the meeting.

     SECTION 8.3   Call of Meetings by Company or Securityholders.

     In case at any time the Company, pursuant to a resolution of the Board of
Directors, or the holders of at least 10% in aggregate principal amount of the
Securities of any or all series, as the case may be, then outstanding, shall
have requested the Trustee to call a meeting of Securityholders of any or all
series, as the case may be, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not
have mailed the notice of such meeting within 20 days after receipt of such
request, then the Company or such Securityholders may determine the time and the
place in said Borough of Manhattan for such meeting and may call such meeting to
take any action authorized in Section 8.1, by mailing notice thereof as provided
in Section 8.2.

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<PAGE>

    SECTION 8.4   Qualifications for Voting.

     To be entitled to vote at any meeting of Securityholders a Person shall (a)
be a holder of one or more Securities with respect to which the meeting is being
held or (b) a Person appointed by an instrument in writing as proxy by a holder
of one or more such Securities.  The only Persons who shall be entitled to be
present or to speak at any meeting of Securityholders shall be the Persons
entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its
counsel.

     SECTION 8.5   Regulations

     Notwithstanding any other provisions of this Indenture, the Trustee may
make such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Securities and of the
appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall think fit.

     The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Securityholders as provided in Section 8.3, in which case the
Company or the Securityholders calling the meeting, as the case may be, shall in
like manner appoint a temporary chairman.  A permanent chairman and a permanent
secretary of the meeting shall be elected by majority vote of the meeting.

     Subject to the provisions of Section 8.4, at any meeting each holder of
Securities with respect to which such meeting is being held or proxy therefor
shall be entitled to one vote for each $25 principal amount of Securities held
or represented by him; provided, however, that no vote shall be cast or counted
at any meeting in respect of any Security challenged as not outstanding and
ruled by the chairman of the meeting to be not outstanding.  The chairman of the
meeting shall have no right to vote other than by virtue of Securities held by
him or instruments in writing as aforesaid duly designating him as the person to
vote on behalf of other Securityholders.  Any meeting of Securityholders duly
called pursuant to the provisions of Section 8.2 or Section 8.3 may be adjourned
from time to time by a majority of those present in person and by proxy, and the
meeting may be held as so adjourned without further notice.

     SECTION 8.6   Voting.

     The vote upon any resolution submitted to any meeting of holders of
Securities with respect to which such meeting is being held shall be by written
ballots on which shall be subscribed the signatures of such holders or of their
representatives by proxy and the serial number or numbers of the Securities held
or represented by them.  The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or against
any resolution and who shall make and file with the secretary of the meeting
their verified written reports in triplicate of all votes cast at the meeting.
A record in duplicate of the proceedings of each meeting of Securityholders
shall be prepared by the secretary of the meeting and there shall be attached to
said record the original reports of the inspectors of votes on any vote by
ballot taken thereat and affidavits by one or more persons having knowledge of
the facts setting forth a copy of the notice of the meeting and showing that
said notice was mailed as provided in Section 8.2.  The record shall show the
serial numbers of the Securities voting in favor of or against any resolution.
The record shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one of the duplicates shall be
delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.

     Any record so signed and verified shall be conclusive evidence of the
matters therein stated.

                                       31
<PAGE>

                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

     SECTION 9.1  Supplemental Indentures without Consent of Securityholders.

     The Company and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect), without the consent of
the Securityholders, for one or more of the following purposes:

     (a)  to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by the successor corporation of the
covenants, agreements and obligations of the Company pursuant to Article X
hereof;

     (b)  to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection of the holders of all or any
series of Securities (and if such covenants are to be for the benefit of less
than all series of Securities stating that such covenants are expressly being
included for the benefit of such series) as the Board of Directors and the
Trustee shall consider to be for the protection of the holders of such
Securities, and to make the occurrence, or the occurrence and continuance, of a
default in any of such additional covenants, restrictions or conditions a
default or an Event of Default permitting the enforcement of all or any of the
several remedies provided in this Indenture as herein set forth; provided,
however, that in respect of any such additional covenant, restriction or
condition such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon
such default or may limit the remedies available to the Trustee upon such
default;

     (c)  to provide for the issuance under this Indenture of Securities in
coupon form (including Securities registrable as to principal only) and to
provide for exchangeability of such Securities with the Securities issued
hereunder in fully registered form and to make all appropriate changes for such
purpose;

     (d)  to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture, or to make such other provisions in regard to matters or questions
arising under this Indenture; provided that any such action shall not adversely
affect the interests of the holders of the Securities;

     (e)  to evidence and provide for the acceptance of appointment hereunder by
a successor trustee with respect to the Securities of one or more series and to
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the Trusts hereunder by more
than one trustee, pursuant to the requirements of Section 6.11;

     (f)  to make any change that does not adversely affect the rights of any
Securityholder in any material respect; or

     (g)  to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series as permitted by Sections 2.1 and 2.2,
to establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or any series of Securities, or to add to the rights
of the holders of any series of Securities.

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer and assignment of any property thereunder, but the Trustee shall not be
obligated to, but may in its discretion, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

                                       32
<PAGE>

     Any supplemental indenture authorized by the provisions of this Section 9.1
may be executed by the Company and the Trustee without the consent of the
holders of any of the Securities at the time outstanding, notwithstanding any of
the provisions of Section 9.2.

     SECTION 9.2  Supplemental Indentures with Consent of Securityholders.

     With the consent (evidenced as provided in Section 7.1) of the holders of
not less than a majority in aggregate principal amount of the Securities at the
time outstanding of all series affected by such supplemental indenture (voting
as a class), and in the case of Securities issued to a Sterling Capital Trust,
the holders of a majority in aggregate liquidation amount of the related
Preferred Securities, the Company, when authorized by a Board Resolution, and
the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act then in effect) for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental indenture or of modifying in any manner the rights of the
holders of the Securities of each series so affected; provided, however, that no
such supplemental indenture shall, without the consent of the holders of each
Security affected thereby (and each Preferred Security, if applicable), (i)
extend or change the fixed maturity of any Security of any series (except as may
otherwise be provided by the terms of any supplemental indenture establishing
such series in accordance with Section 2.2 hereof), or reduce the rate of
interest thereon or extend the time of payment of interest thereon (except as
may otherwise be provided by the terms of any supplemental indenture
establishing such series in accordance with Section 2.2 hereof), or reduce the
principal amount thereof or any premium thereon, or reduce any amount payable on
redemption thereof or make the principal thereof or any interest or premium
thereon payable in any coin or currency other than that provided in the
Securities, or impair or affect the right of any Securityholder to institute
suit for payment thereof or the right of repayment, if any, at the option of the
holder, without the consent of the holder of each Security so affected, (ii)
reduce the aforesaid percentage of Securities the holders of which are required
to consent to any such supplemental indenture or (iii) otherwise materially
adversely affect the interest of the holders of any series of the Securities or
the Preferred Securities; provided, further, that if the Securities of such
series are held by a Sterling Capital Trust or a trustee of such trust, such
supplemental indenture shall not be effective until the holders of a majority in
liquidation preference of Trust Securities of the applicable Trust shall have
consented to such supplemental indenture; provided further, that if the consent
of the holder of each outstanding Security is required, such supplemental
indenture shall not be effective until each holder of the Trust Securities of
the applicable Sterling Capital Trust shall have consented to such supplemental
indenture.

     A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of Securityholders of such series with respect to such covenant or
provision, shall be deemed not to affect the rights under this Indenture or the
Securityholders of any other series.

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

     Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

                                       33
<PAGE>

     It shall not be necessary for the consent of the Securityholders under this
Section 9.2 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

     SECTION 9.3  Compliance with Trust Indenture Act; Effect of Supplemental
                  Indentures.

     Any supplemental indenture executed pursuant to the provisions of this
Article IX shall comply with the Trust Indenture Act, as then in effect. Upon
the execution of any supplemental indenture pursuant to the provisions of this
Article IX, this Indenture shall be and be deemed to be modified and amended in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company and the holders of Securities of each series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

     SECTION 9.4  Notation on Securities.

     Securities of any series authenticated and delivered after the execution of
any supplemental indenture affecting such series pursuant to the provisions of
this ARTICLE IX may bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company or the
Trustee shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Board of Directors, to any
modification of this Indenture contained in any such supplemental indenture
maybe prepared and executed by the Company, authenticated by the Trustee or the
Authenticating Agent and delivered in exchange for the Securities of any series
then outstanding.

     SECTION 9.5  Evidence of Compliance of Supplemental Indenture to be
                  Furnished Trustee.

     The Trustee, subject to the provisions of Section 6.1 and Section 6.2, may
receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant hereto complies with
the requirements of this ARTICLE IX.

                                   ARTICLE X

               CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

     SECTION 10.1   Company May Consolidate, etc., on Certain Terms.

     Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company, as the case may be), or successive
consolidations or mergers in which the Company or its successor or successors,
as the case may be, shall be a party or parties, or shall prevent any sale,
conveyance, transfer or lease of the property of the Company, or its successor
or successors as the case may be, as an entirety, or substantially as an
entirety, to any other Person (whether or not affiliated with the Company, or
its successor or successors, as the case may be) authorized to acquire and
operate the same; provided, that (a) the Company is the surviving Person, or the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, conveyance, transfer or lease of property is
made is a Person organized and existing under the laws of the United States or
any State thereof or the District of Columbia and is the ultimate parent entity
of the organization with which the Company is engaging in such transaction, and
(b) upon any such consolidation, merger, sale, conveyance, transfer or lease,
the due and punctual payment of the principal of and interest on all of the
Securities of all series in accordance with the terms of each series, according
to their tenor and the due and punctual performance and observance of all the
covenants and conditions of this Indenture with respect to each series or
established with respect to such series to be kept or performed by the Company
shall be expressly assumed, by supplemental indenture (which shall conform to
the provisions of the Trust Indenture Act) satisfactory in form to the Trustee
executed and delivered to the Trustee by the Person formed by such
consolidation, or into which the Company shall have been merged (or its ultimate
parent

                                       34
<PAGE>

entity), or by the Person which shall have acquired such property, as the
case may be, and (c) after giving effect to such consolidation, merger, sale,
conveyance, transfer or lease, no Default or Event of Default shall have
occurred and be continuing.

     SECTION 10.2   Successor Corporation to be Substituted for Company.

     In case of any such consolidation, merger, conveyance or transfer and upon
the assumption by the successor corporation, by supplemental indenture, executed
and delivered to the Trustee and satisfactory in form to the Trustee, of the
obligation of due and punctual payment of the principal of and interest on all
of the Securities and the due and punctual performance and observance of all of
the covenants and conditions of this Indenture to be performed or observed by
the Company, such successor Person shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein as the party of the
first part, and the Company thereupon shall be relieved of any further liability
or obligation hereunder or upon the Securities.  Such successor Person thereupon
may cause to be signed, and may issue either in its own name or in the name of
Sterling Capital Trust, any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee or the Authenticating Agent; and, upon the order of such successor
Person instead of the Company and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee or the Authenticating
Agent shall authenticate and deliver any Securities which previously shall have
been signed and delivered by the officers of the Company to the Trustee or the
Authenticating Agent for authentication, and any Securities which such successor
Person thereafter shall cause to be signed and delivered to the Trustee or the
Authenticating Agent for that purpose.  All the Securities so issued shall in
all respects have the same legal rank and benefit under this Indenture as the
Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Indentures had been issued at the date of the
execution hereof.

     SECTION 10.3   Opinion of Counsel to be Given Trustee.

     The Trustee, subject to the provisions of Section 6.1 and Section 6.2 may
receive an Opinion of Counsel as conclusive evidence that any consolidation,
merger, sale, conveyance, transfer or lease, and any assumption, permitted or
required by the terms of this Article X complies with the provisions of this
Article X.

                                  ARTICLE XI
                    SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 11.1   Discharge of Indenture.

     When (a) the Company shall deliver to the Trustee for cancellation all
Securities theretofore authenticated (other than any Securities which shall have
been destroyed, lost or stolen and which shall have been replaced as provided in
Section 2.7) and not theretofore cancelled, or (b) all the Securities not
theretofore cancelled or delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit with the Trustee, in trust, funds sufficient to pay at
maturity or upon prepayment all of the Securities (other than any Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced as provided in Section 2.7) not theretofore cancelled or delivered to
the Trustee for cancellation, including principal (and premium, if any) and
interest due or to become due to such date of maturity or redemption date, as
the case may be, but excluding, however, the amount of any moneys for the
payment of principal of or interest on the Securities (1) theretofore repaid to
the Company in accordance with the provisions of Section 11.4, or (2) paid to
any State or to the District of Columbia pursuant to its unclaimed property or
similar laws, and if in either case the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall
cease to be of further effect except for the provisions of this Section 11.1 and
Sections 2.3, 2.6, 2.7, 3.1, 3.2, 3.4, 6.6, 6.10 and 11.4 hereof, which shall
survive until such Securities shall mature and be paid. Thereafter, this Section
11.1 and Sections 6.6, 6.10 and 11.4 shall survive, and the Trustee, on demand
of the Company accompanied by any Officers' Certificate and an Opinion of
Counsel and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture; the

                                       35
<PAGE>

Company, however, hereby agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee in
connection with this Indenture or the Securities.

     SECTION 11.2  Deposited Moneys and U.S. Government Obligations to be Held
                   in Trust by Trustee.

     Subject to the provisions of Section 11.4, all moneys and U.S. Government
Obligations deposited with the Trustee pursuant to Section 11.1 or Section 11.5
shall be held in trust and applied by it to the payment, either directly or
through any paying agent (including the Company if acting as its own paying
agent), to the holders of the particular Securities for the payment of which
such moneys or U.S. Government Obligations have been deposited with the Trustee,
of all sums due and to become due thereon for principal and interest.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 11.5 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the holders of outstanding Securities.

     SECTION 11.3  Paying Agent to Repay Moneys Held.

     Upon the satisfaction and discharge of this Indenture all moneys then held
by any paying agent of the Securities (other than the Trustee) shall, upon
written demand of the Company, be repaid to it or paid to the Trustee, and
thereupon such paying agent shall be released from all further liability with
respect to such moneys.

     SECTION 11.4  Return of Unclaimed Moneys.

     Any moneys deposited with or paid to the Trustee or any paying agent for
payment of the principal of or interest on Securities and not applied but
remaining unclaimed by the holders of Securities for two years after the date
upon which the principal of or interest on such Securities, as the case may be,
shall have become due and payable, shall be repaid to the Company by the Trustee
or such paying agent on written demand; the holder of any of the Securities
shall thereafter look only to the Company for any payment which such holder may
be entitled to collect and all liability of the Trustee or such paying agent
with respect to such moneys shall thereupon cease.

     SECTION 11.5  Defeasance Upon Deposit of Moneys or U.S. Government
                   Obligations.

     The Company shall be deemed to have been Discharged (as defined below) from
its respective obligations with respect to any series of Securities on the 91st
day after the applicable conditions set forth below with respect to any series
of Securities have been satisfied:

     (a)  the Company shall have deposited or caused to be deposited irrevocably
with the Trustee or the Defeasance Agent (as defined below) as trust funds in
trust, specifically pledged as security for, and dedicated solely to, the
benefit of the holders of the Securities of such series (i) money in an amount,
or (ii) U.S. Government Obligations which through the payment of interest and
principal in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment, money in an amount, or
(iii) a combination of (i) and (ii), sufficient, in the opinion (with respect to
(ii) and (iii)) of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee and the Defeasance Agent, if any, to pay and discharge each installment
of principal of and interest on the outstanding Securities of such series on the
dates such installments of principal or interest due;

     (b)  if the Securities of such series are then listed on any national
securities exchange, the Company shall have delivered to the Trustee and the
Defeasance Agent, if any, an Opinion of Counsel to the effect that the exercise
of the option under this Section 11.5 would not cause such Securities to be
delisted from such exchange;

     (c)  no Default or Event of Default with respect to the Securities of such
series shall have occurred and be continuing on the date of such deposit; and

                                       36
<PAGE>

     (d)  the Company shall have delivered to the Trustee and the Defeasance
Agent, if any, an Opinion of Counsel to the effect that holders of the
Securities of such series will not recognize income, gain or loss for United
States Federal income tax purposes as a result of the exercise of the option
under this Section 11.5 and will be subject to United States Federal income tax
on the same amount and in the same manner and at the same times as would have
been the case if such option had not been exercised, and in the case of the
Securities of such series being Discharged, such opinion shall be based on a
statute so providing or be accompanied by a private letter ruling to that effect
received from the United States Internal Revenue Service or a revenue ruling
pertaining to a comparable form of transaction to that effect published by the
United States Internal Revenue Service.

     "Discharged" means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Securities of such series and to have satisfied all the obligations under this
Indenture relating to the Securities of such series (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except (A) the rights of holders of Securities of such series to receive,
from the trust fund described in clause (1) above, payment of the principal of
and the interest and premium, if any, on such Securities when such payments are
due; (B) the Company's obligations with respect to the Securities under Sections
2.6, 2.7, 5.2 and 11.4; and (C) the rights, powers, trusts, duties and
immunities of the Trustee hereunder.

     "Defeasance Agent" means another financial institution which is eligible to
act as Trustee hereunder and which assumes all of the obligations of the Trustee
necessary to enable the Trustee to act hereunder.  In the event such a
Defeasance Agent is appointed pursuant to this Section, the following conditions
shall apply:

        (a)  The Trustee shall have approval rights over the document appointing
such Defeasance Agent and the document setting forth such Defeasance Agent's
rights and responsibilities;

        (b)  The Defeasance Agent shall provide verification to the Trustee
acknowledging receipt of sufficient money and/or U. S. Government Obligations to
meet the applicable conditions set forth in this Section 11.5.

                                  ARTICLE XII

        IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

     SECTION 12.1  Indenture and Securities Solely Corporate Obligations.

     No recourse for the payment of the principal of or interest on any
Security, or for any claim based thereon or otherwise in respect thereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
this Indenture or in any supplemental indenture, or in any Security, or because
of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor Person to the Company, either
directly or through the Company or any successor Person to the Company, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly understood that all
such liability is hereby expressly waived and released as a condition of, and as
a consideration for, the execution of this Indenture and the issue of the
Securities.

                                 ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

     SECTION 13.1  Successors.

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

                                       37
<PAGE>

     SECTION 13.2  Official Acts by Successor Corporation.

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

     SECTION 13.3  Surrender of Company Powers.

     The Company by instrument in writing executed by authority of 2/3 (two-
thirds) of its Board of Directors and delivered to the Trustee may surrender any
of the powers reserved to the Company, and thereupon such power so surrendered
shall terminate both as to the Company, as the case may be, and as to any
successor Person.

     SECTION 13.4  Addresses for Notices, etc.

     Any notice or demand which by any provision of this Indenture is required
or permitted to be given or served by the Trustee or by the holders of
Securities on the Company may be given or served by being deposited postage
prepaid by first class mail, registered or certified mail, overnight courier
service or conformed telecopy addressed (until another address is filed by the
Company with the Trustee for the purpose) to the Company at 15000 Northwest
Freeway, Suite 200, Houston, Texas 77040, Attention: Vice President, Secretary
and Chief Financial Officer.  Any notice, direction, request or demand by any
Securityholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the office of
the Trustee, Bankers Trust Company, Four Albany Street, New York, New York
10006, Attention: Corporate Trust and Agency Services (unless another address is
provided by the Trustee to the Company for such purpose).  Any notice or
communication to a Securityholder shall be mailed by first class mail to his or
her address shown on the register kept by the Security Registrar.

     SECTION 13.5  Governing Law.

     THIS INDENTURE AND EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE.

     SECTION 13.6  Evidence of Compliance with Conditions Precedent.

     Upon any application or demand by the Company to the Trustee to take any
action under any of the provisions of this Indenture, the Company shall furnish
to the Trustee an Officers' Certificate stating that in the opinion of the
signers all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with and an Opinion of
Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

     Each certificate or opinion provided for in this Indenture and delivered to
the Trustee with respect to compliance with a condition or covenant provided for
in this Indenture (except certificates delivered pursuant to Section 3.5) shall
include (1) a statement that the Person making such certificate or opinion has
read such covenant or condition; (2) a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based; (3) a statement that, in the
opinion of such Person, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not such
covenant or condition has been complied with; and (4) a statement as to whether
or not, in the opinion of such person, such condition or covenant has been
complied with.

     SECTION 13.7  Business Days.

     In any case where the date of payment of principal of (or premium, if any)
or interest on the Securities will not be a Business Day, the payment of such
principal of (or premium, if any) or interest on the Securities need not be made
on such date but may be made on the next succeeding Business Day, with the same
force and effect as if

                                       38
<PAGE>

made on the date of payment and no interest shall accrue for the period from and
after such date, except that if such next succeeding Business Day falls in the
next succeeding calendar year, then such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such date.

     SECTION 13.8  Trust Indenture Act to Control.

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

     SECTION 13.9  Table of Contents, Headings, etc.

     The table of contents and the titles and headings of the articles and
sections of this Indenture have been inserted for convenience of reference only,
are not to be considered a part hereof, and shall in no way modify or restrict
any of the terms or provisions hereof.

     SECTION 13.10  Execution in Counterparts.

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

     SECTION 13.11  Separability.

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

     SECTION 13.12  Assignment.

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

     SECTION 13.13  Acknowledgement of Rights.

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

                                       39
<PAGE>

                                  ARTICLE XIV

                            PREPAYMENT OF SECURITIES

     SECTION 14.1  Applicability of Article.

     The provisions of this Article shall be applicable to the Securities of any
series which, by their terms, may be prepaid before their maturity except as
otherwise as specified as contemplated by Section 2.2 for Securities of such
series.

     SECTION 14.2  Notice of Prepayment; Selection of Securities.

     In case the Company shall desire to exercise the right to prepay all, or,
as the case may be, any part of the Securities of any series in accordance with
their terms, it shall fix a date for prepayment and shall mail a notice of such
prepayment at least 30 and not more than 60 days prior to the date fixed for
prepayment to the holders of Securities of such series to be so prepaid as a
whole or in part at their last addresses as the same appear on the Security
Register.  Such mailing shall be by first class mail.  The notice if mailed in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice.  In any case, failure to
give such notice by mail or any defect in the notice to the holder of any
Security of a series designated for prepayment as a whole or in part shall not
affect the validity of the proceedings for the prepayment of any other Security
of such series.

     Each such notice of prepayment shall identify the Securities to be prepaid
(including the CUSIP number), the date fixed for prepayment, the prepayment
price at which the Securities are to be prepaid (or the method by which such
prepayment price is to be calculated), the place or places of payment that
payment will be made upon presentation and surrender of such Securities, that
interest accrued to the date fixed for prepayment will be paid as specified in
said notice, and that on and after said date interest thereon or on the portions
thereof to be prepaid will cease to accrue.  If less than all the Securities of
such series are to be prepaid, the notice of prepayment shall specify the number
of the Securities of that series to be prepaid.  In case any Security of a
series is to be prepaid in part only, the notice of prepayment shall state the
portion of the principal amount thereof to be redeemed and shall state that on
and after the date fixed for prepayment, upon surrender of such Security, a new
Security or Securities of that series in principal amount equal to the portion
thereof that has not been prepaid will be issued.

     By 10:00 a.m. New York time on the prepayment date specified in the notice
of prepayment given as provided in this Section, the Company will deposit with
the Trustee or with one or more paying agents an amount of money sufficient to
prepay on the prepayment date all the Securities so called for prepayment at the
appropriate prepayment price, together with accrued interest to the date fixed
for prepayment.

     If the Securities of a series are to be redeemed, the Company will give the
Trustee notice not less than 45 days prior to the prepayment date as to the
aggregate principal amount of Securities of that series to be prepaid and, in
the case of partial prepayment, the Trustee shall select, in such manner as in
its sole discretion it shall deem appropriate and fair, the Securities of that
series or portions thereof (in integral multiples of $25, except as otherwise
set forth in the applicable form of Security) to be prepaid.

     SECTION 14.3  Payment of Securities Called for Prepayment.

     If notice of prepayment has been given as provided in Section 14.2, the
Securities or portions of Securities of that series with respect to which such
notice has been given shall become due and payable on the date and at the place
or places stated in such notice at the applicable prepayment price, together
with interest accrued to the date fixed for prepayment, and on and after said
date (unless the Company shall default in the payment of such Securities at the
applicable prepayment price, together with interest accrued to said date)
interest on the Securities or portions of Securities so called for prepayment
shall cease to accrue.  On presentation and surrender of such Securities at a
place of payment specified in said notice, the said Securities or the specified
portions thereof shall be paid and

                                       40
<PAGE>

prepaid by the Company at the applicable prepayment price, together with
interest accrued thereon to the date fixed for prepayment.

     Upon presentation of any Security of any series prepaid in part only, the
Company shall execute and the Trustee shall authenticate and make available for
delivery to the holder thereof, at the expense of the Company, a new Security or
Securities of such series of authorized denominations, in principal amount equal
to the portion of the Security so presented that has not been prepaid.

                                  ARTICLE XV

                          SUBORDINATION OF SECURITIES

     SECTION 15.1  Agreement to Subordinate.

     The Company covenants and agrees, and each holder of Securities issued
hereunder and under any supplemental indenture or by any Board Resolution
("Additional Provisions") by such Securityholder's acceptance thereof, likewise
covenants and agrees, that all Securities shall be issued subject to the
provisions of this Article XV; and each holder of a Security, whether upon
original issue or upon transfer or assignment thereof, accepts and agrees to be
bound by such provisions.

     The payment by the Company of the principal of and interest on all
Securities issued hereunder and under any Additional Provisions shall, to the
extent and in the manner hereinafter set forth, be subordinated and junior in
right of payment to all Senior Indebtedness, whether outstanding at the date of
this Indenture or thereafter incurred.

     No provision of this Article XV shall prevent the occurrence of any Default
or Event of Default hereunder.

     SECTION 15.2  Default on Senior Indebtedness.

     In the event and during the continuation of any default by the Company in
the payment of principal, interest or any other payment due on any Senior
Indebtedness, or in the event that the maturity of any Senior Indebtedness has
been accelerated because of a default, then, in either case, no payment shall be
made by the Company with respect to the principal (including redemption
payments) of or interest on the Securities.

     In the event of the acceleration of the maturity of the Securities, then no
payment shall be made by the Company with respect to the principal (including
redemption payments) of or interest on the Securities until the holders of all
Senior Indebtedness outstanding at the time of such acceleration shall receive
payment in full of such Senior Indebtedness (including any amounts due upon
acceleration).

     In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee when such payment is prohibited by the preceding
paragraphs of this Section 15.2, such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the holders of Senior
Indebtedness or their respective representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, but only to the extent
that the holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on such Senior Indebtedness, and
only the amounts specified in such notice to the Trustee shall be paid to the
holders of such Senior Indebtedness.

     SECTION 15.3  Liquidation; Dissolution; Bankruptcy.

     Upon any payment by the Company or distribution of assets of the Company of
any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or liquidation or reorganization of the
Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all holders of Senior Indebtedness of the
Company shall first be paid in full, or payment thereof provided for in money in
accordance with its terms, before any payment is made by the Company on account
of the

                                       41
<PAGE>

principal or interest on the Securities; and upon any such dissolution or
winding-up or liquidation or reorganization, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, which the Securityholders or the Trustee would be
entitled to receive from the Company, except for the provisions of this Article
XV, shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Securityholders or by the Trustee under the Indenture if received by
them or it, directly to the holders of Senior Indebtedness of the Company (pro
rata to such holders on the basis of the respective amounts of Senior
Indebtedness held by such holders, as calculated by the Company) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay all such Senior Indebtedness in full, in money or money's
worth, after giving effect to any concurrent payment or distribution to or for
the holders of such Senior Indebtedness, before any payment or distribution is
made to the Securityholders or to the Trustee.

     In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character prohibited by the
foregoing, whether in cash, property or securities, shall be received by the
Trustee before all Senior Indebtedness is paid in full, or provision is made for
such payment in money in accordance with its terms, such payment or distribution
shall be held in trust for the benefit of and shall be paid over or delivered to
the holders of such Senior Indebtedness or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing such Senior Indebtedness may have been issued,
as their respective interests may appear, as calculated by the Company, for
application to the payment of all Senior Indebtedness remaining unpaid to the
extent necessary to pay all such Senior Indebtedness in full in money in
accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the benefit of the holders of such Senior Indebtedness.

     For purposes of this Article XV, the words "cash, property or securities"
shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article XV with respect to
the Securities to the payment of Senior Indebtedness that may at the time be
outstanding, provided that (i) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment, and
(ii) the rights of the holders of such Senior Indebtedness are not, without the
consent of such holders, altered by such reorganization or readjustment.  The
consolidation of the Company with, or the merger of the Company into, another
Person or the liquidation or dissolution of the Company following the sale,
conveyance, transfer or lease of its property as an entirety, or substantially
as an entirety, to another Person upon the terms and conditions provided for in
Article X of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section 15.2 if such
other Person shall, as a part of such consolidation, merger, sale, conveyance,
transfer or lease, comply with the conditions stated in Article X of this
Indenture.  Nothing in Section 15.2 or in this Section 15.3 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 6.6 of this
Indenture.

     SECTION 15.4  Subrogation.

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

     Nothing contained in this Article XV or elsewhere in this Indenture, any
Additional Provisions or in the Securities is intended to or shall impair, as
between the Company, its creditors other than the holders of Senior

                                       42
<PAGE>

Indebtedness of the Company, and the holders of the Securities, the obligation
of the Company, which is absolute and unconditional, to pay to the holders of
the Securities the principal of and interest on the Securities as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of the holders of the Securities and
creditors of the Company, as the case may be, other than the holders of Senior
Indebtedness, nor shall anything herein or therein prevent the Trustee or the
holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under the Indenture, subject to the rights, if any,
under this Article XV of the holders of such Senior Indebtedness in respect of
cash, property or securities of the Company, as the case may be, received upon
the exercise of any such remedy.

     Upon any payment or distribution of assets of the Company referred to in
this Article XV, the Trustee, subject to the provisions of Article VI of this
Indenture, and the Securityholders shall be entitled to conclusively rely upon
any order or decree made by any court of competent jurisdiction in which such
dissolution, winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver, trustee in bankruptcy, liquidation trustee,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the Securityholders, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior Indebtedness
and other indebtedness of the Company, as the case may be, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article XV.

     SECTION 15.5  Trustee to Effectuate Subordination.

     Each Securityholder by such Securityholder's acceptance thereof authorizes
and directs the Trustee on such Securityholder's behalf to take such action as
may be necessary or appropriate to effectuate the subordination provided in this
Article XV and appoints the Trustee such Securityholder's attorney-in-fact for
any and all such purposes.

     SECTION 15.6  Notice by the Company.

     The Company shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Company that would prohibit the making of
any payment of monies to or by the Trustee in respect of the Securities pursuant
to the provisions of this Article XV.  Notwithstanding the provisions of this
Article XV or any other provision of this Indenture or any Additional
Provisions, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment of monies to or by the
Trustee in respect of the Securities pursuant to the provisions of this Article
XV, unless and until a Responsible Officer of the Trustee shall have received
written notice thereof from the Company or a holder or holders of Senior
Indebtedness or from any trustee therefor; and before the receipt of any such
written notice, the Trustee, subject to the provisions of Article VI of this
Indenture, shall be entitled in all respects to assume that no such facts exist;
provided, however, that if the Trustee shall not have received the notice
provided for in this Section 15.6 at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of or interest on
any Security), then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such money and to
apply the same to the purposes for which they were received, and shall not be
affected by any notice to the contrary that may be received by it within two
Business Days prior to such date.

     The Trustee, subject to the provisions of Article VI of this Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by a Person representing himself to be a holder of Senior Indebtedness of the
Company (or a trustee on behalf of such holder), as the case may be, to
establish that such notice has been given by a holder of such Senior
Indebtedness or a trustee on behalf of any such holder or holders.  In the event
that the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a holder of such Senior Indebtedness to
participate in any payment or distribution pursuant to this Article XV, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article XV, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

                                       43
<PAGE>

     Upon any payment or distribution of assets of the Company referred to in
this Article XV, the Trustee and the Securityholders shall be entitled to
conclusively rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation,
reorganization, dissolution, winding up or similar case or proceeding is
pending, or a certificate of the trustee in bankruptcy, liquidating trustee,
custodian, receiver, assignee for the benefit of creditors, agent or other
person making such payment or distribution, delivered to the Trustee or to the
Securityholders, for the purpose of ascertaining the persons entitled to
participate in such payment or distribution, the holders of Senior Indebtedness
and other indebtedness of the Company, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article XV.

     SECTION 15.7  Rights of the Trustee; Holders of Senior Indebtedness.

     The Trustee in its individual capacity shall be entitled to all the rights
set forth in this Article XV in respect of any Senior Indebtedness at any time
held by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee of any of its rights as such
holder.

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

     Nothing in this Article XV shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.6.

     SECTION 15.8  Subordination May Not Be Impaired.

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

     Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Indebtedness of the Company may, at any time and from time to
time, without the consent of or notice to the Trustee or the Securityholders,
without incurring responsibility to the Securityholders and without impairing or
releasing the subordination provided in this Article XV or the obligations
hereunder of the holders of the Securities to the holders of such Senior
Indebtedness, do any one or more of the following:  (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, such
Senior Indebtedness, or otherwise amend or supplement in any manner such Senior
Indebtedness or any instrument evidencing the same or any agreement under which
such Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing such
Senior Indebtedness; (iii) release any Person liable in any manner for the
collection of such Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company, as the case may be, and any other
Person.

     Bankers Trust Company hereby accepts the trusts in this Indenture declared
and provided, upon the terms and conditions hereinabove set forth.

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed by their respective officers thereunto duly authorized, as of the
day and year first above written.

                                       44
<PAGE>

                              STERLING BANCSHARES, INC.

                              By /s/ GEORGE MARTINEZ
                                -----------------------------
                              Name:  George Martinez
                              Title:  Chairman

                              BANKERS TRUST COMPANY,
                              as Trustee

                              By /s/ SUSAN JOHNSON
                                -----------------------------
                              Name:  Susan Johnson
                              Title:  Vice President

                                       45

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