Document:

Exhibit 10.40

                              FOURTH AMENDMENT TO
                            AGREEMENT OF PARTNERSHIP
                       GEODYNE PRODUCTION PARTNERSHIP II-H

      This Fourth  Amendment to Agreement of Partnership  of Geodyne  Production
Partnership  II-H (the  "Partnership")  is entered  into by and between  Geodyne
Resources,  Inc.  ("Resources"),  a Delaware corporation,  as successor Managing
Partner, and Geodyne Energy Income Limited Partnership II-H ("Geodyne II-H"), as
General Partner.

      WHEREAS,  on May 17, 1989, Geodyne Production Company  ("Production"),  as
Managing  Partner,  and Geodyne II-H, as General  Partner,  executed and entered
into that certain Agreement of Partnership of PaineWebber/Geodyne  Energy Income
Production Partnership II-H (the "Agreement"); and

      WHEREAS,  on February 26, 1993,  Production  and Geodyne II-H executed and
entered into that certain First  Amendment to Agreement,  whereby it changed (i)
the name of the Partnership from  "PW/Geodyne  Production  Partnership  II-H" to
"Geodyne  Production  Partnership  II-H",  (ii) the address of the Partnership's
principal place of business,  and (iii) the address for the Partnership's  agent
for service of process; and

      WHEREAS,   Production   merged  with  and  into   Resources,   its  parent
corporation, effective June 30, 1996; and

      WHEREAS, on July 1, 1996, Production,  Resources and Geodyne II-H executed
and  entered  into that  certain  Second  Amendment  to  Agreement,  whereby all
references to Production as Managing  Partner were amended to reflect,  instead,
Resources as Managing Partner; and

      WHEREAS,  on November 14, 2001,  Resources  executed and entered into that
certain Third  Amendment to Agreement  whereby the term of the  partnership  was
extended for an additional two years, until December 31, 2003; and

      WHEREAS,  Section 10.1 of the Agreement provides that the managing partner
of the partnership (the "Managing Partner") may, without prior notice or consent
of any other Partner (as defined in the Agreement),  amend any provision of this
Agreement if, in its opinion,  such amendment  does not have a material  adverse
effect upon the Limited Partnership (as defined in the Agreement); and

      WHEREAS,  Section 2.3 of the Agreement provides that the Partnership shall
continue in full force and effect until December

                                      -1-
<PAGE>

31,  2003,  provided  that  the  Managing  Partner  may  extend  the term of the
Partnership for up to four periods of two years each or until  dissolution prior
thereto pursuant to the provisions of the Agreement; and

      WHEREAS,  Resources has elected to extend the life of the  Partnership  an
additional two years.

      NOW,  THEREFORE,  be it resolved  that  Section 2.3 is hereby  amended and
rested as follows:

            The Production  Partnership shall continue in force and effect until
      December 31, 2005, provided that the Managing Partner may extend such term
      for up to three  periods of two years  each,  or until  dissolution  prior
      thereto pursuant to the provisions thereof.

       IN WITNESS  WHEREOF,  the parties hereto have hereunto set their hands as
of the 18th day of November, 2003.

                                       Geodyne Resources, Inc.
                                       as Managing Partner

                                          By://s// Dennis R. Neill
                                          -------------------------
                                            Dennis R. Neill
                                            President

                                       Geodyne Energy Income Limited
                                       Partnership II-H
                                       as General Partner

                                       By Geodyne Resources, Inc.
                                          General Partner

                                          By://s// Dennis R. Neill
                                          -------------------------
                                            Dennis R. Neill
                                            President

                                      -2-<PAGE>

                                                                     EXHIBIT 4.1

                                                               EXECUTION VERSION

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                       WESTCOAST HOSPITALITY CAPITAL TRUST

                                February 24, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
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                                                                                                                 PAGE
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ARTICLE I INTERPRETATION AND DEFINITIONS.................................................................          1

         Section 1.1 Definitions.........................................................................          1

ARTICLE II TRUST INDENTURE ACT...........................................................................          9

         Section 2.1 Trust Indenture Act; Application....................................................          9
         Section 2.2 Lists of Holders of Securities......................................................          9
         Section 2.3 Reports by the Property Trustee.....................................................          9
         Section 2.4 Periodic Reports to Property Trustee................................................         10
         Section 2.5 Evidence of Compliance with Conditions Precedent....................................         10
         Section 2.6 Declaration Events of Default; Waiver...............................................         10
         Section 2.7 Event of Default; Notice............................................................         12

ARTICLE III ORGANIZATION.................................................................................         12

         Section 3.1 Name................................................................................         12
         Section 3.2 Office..............................................................................         12
         Section 3.3 Purpose.............................................................................         12
         Section 3.4 Authority...........................................................................         13
         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................................         16
         Section 3.8 Powers and Duties of the Property Trustee...........................................         17
         Section 3.9 Certain Duties and Responsibilities of the Property Trustee.........................         18
         Section 3.10 Certain Rights of Property Trustee.................................................         19
         Section 3.11 Delaware Trustee...................................................................         21
         Section 3.12 Not Responsible for Recitals or Issuance of Securities.............................         21
         Section 3.13 Duration of Trust..................................................................         21
         Section 3.14 Mergers............................................................................         21

ARTICLE IV SPONSOR.......................................................................................         23

         Section 4.1 Sponsor's Purchase of Trust Common Securities.......................................         23
         Section 4.2 Responsibilities of the Sponsor.....................................................         23
         Section 4.3 Right of Holders to Bring Direct Action.............................................         23

ARTICLE V TRUSTEES.......................................................................................         24

         Section 5.1 Number of Trustees..................................................................         24
         Section 5.2 Delaware Trustee....................................................................         24
         Section 5.3 Property Trustee; Eligibility.......................................................         24
         Section 5.4 Qualifications of Administrative Trustees and Delaware Trustee Generally............         25
         Section 5.5 Administrative Trustees; Initial Trustees...........................................         25
         Section 5.6 Appointment, Removal and Resignation of Trustees....................................         26
         Section 5.7 Vacancies Among Trustees............................................................         27
         Section 5.8 Effect of Vacancies.................................................................         27
         Section 5.9 Meetings............................................................................         27
         Section 5.10 Delegation Of Power................................................................         28
         Section 5.11 Merger, Conversion, Consolidation or Succession to Business........................         28
</TABLE>

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                                TABLE OF CONTENTS
                                   (continued)

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ARTICLE VI DISTRIBUTIONS.................................................................................         28

         Section 6.1 Distributions.......................................................................         28

ARTICLE VII ISSUANCE OF SECURITIES.......................................................................         29

         Section 7.1 General Provisions Regarding Securities.............................................         29
         Section 7.2 Paying Agent........................................................................         30

ARTICLE VIII TERMINATION OF TRUST........................................................................         30

         Section 8.1 Termination of Trust................................................................         30

ARTICLE IX TRANSFER OF INTERESTS.........................................................................         31

         Section 9.1 Transfer of Securities..............................................................         31
         Section 9.2 Transfer of Certificates............................................................         32
         Section 9.3 Deemed Security Holders.............................................................         32
         Section 9.4 Book-Entry Interests................................................................         32
         Section 9.5 Notices to Depositary...............................................................         33
         Section 9.6 Appointment of Successor Depositary.................................................         33
         Section 9.7 Definitive Trust Preferred Securities Certificates..................................         33
         Section 9.8 Mutilated, Destroyed, Lost or Stolen Certificates...................................         34

ARTICLE X LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS...........................         34

         Section 10.1 Liability..........................................................................         34
         Section 10.2 Exculpation........................................................................         35
         Section 10.3 Fiduciary Duty.....................................................................         35
         Section 10.4 Indemnification....................................................................         36
         Section 10.5 Outside Businesses.................................................................         38
         Section 10.6 Compensation; Fees.................................................................         38

ARTICLE XI ACCOUNTING....................................................................................         39

         Section 11.1 Fiscal Year........................................................................         39
         Section 11.2 Certain Accounting Matters.........................................................         39
         Section 11.3 Banking............................................................................         39
         Section 11.4 Withholding........................................................................         40

ARTICLE XII AMENDMENTS AND MEETINGS......................................................................         40

         Section 12.1 Amendments.........................................................................         40
         Section 12.2 Meetings of the Holders of Securities; Action by Written Consent...................         42

ARTICLE XIII REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE....................................         43

         Section 13.1 Representations and Warranties of Property Trustee.................................         43
         Section 13.2 Representations and Warranties of Delaware Trustee.................................         43
</TABLE>

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                                TABLE OF CONTENTS
                                   (continued)

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ARTICLE XIV MISCELLANEOUS................................................................................         44

         Section 14.1 Notices............................................................................         44
         Section 14.2 Governing Law......................................................................         45
         Section 14.3 Intention of the Parties...........................................................         45
         Section 14.4 Headings...........................................................................         45
         Section 14.5 Successors and Assigns.............................................................         46
         Section 14.6 Partial Enforceability.............................................................         46
         Section 14.7 Counterparts.......................................................................         46
         Section 14.8 CUSIP Numbers......................................................................         46
</TABLE>

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                               ANNEX AND EXHIBITS

ANNEX I      TERMS OF 9.5% TRUST PREFERRED SECURITIES AND 9.5% TRUST COMMON
             SECURITIES

EXHIBIT A-1  FORM OF TRUST PREFERRED SECURITIES CERTIFICATE

EXHIBIT A-2  FORM OF TRUST COMMON SECURITIES CERTIFICATE

EXHIBIT B    SPECIMEN OF DEBENTURE

EXHIBIT C    UNDERWRITING AGREEMENT

<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST
                                       OF
                       WESTCOAST HOSPITALITY CAPITAL TRUST

         AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration"), dated and
effective as of February 24, 2004, by the undersigned trustees (together with
all other Persons from time to time duly appointed and serving as trustees in
accordance with the provisions of this Declaration, the "Trustees"), WestCoast
Hospitality Corporation, a Washington corporation, as trust sponsor (the
"Sponsor"), and by the holders, from time to time, of the securities issued
pursuant to this Declaration representing undivided beneficial interests in the
assets of the Trust (as defined below).

         WHEREAS, the Trustees and the Sponsor established WestCoast Hospitality
Capital Trust (the "Trust"), a statutory trust under the Statutory Trust Act (as
defined herein) pursuant to a Declaration of Trust dated as of October 30, 2003
(the "Original Declaration") and a Certificate of Trust filed with the Secretary
of State of the State of Delaware on October 30, 2003, for the sole purpose of
issuing and selling certain securities representing undivided beneficial
interests in the assets of the Trust and investing the proceeds thereof in
certain Debentures (as defined herein) of the Debenture Issuer (as defined
herein);

         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 trust under the Statutory Trust Act and that
this Declaration constitutes the governing instrument of such statutory 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
issued hereunder representing undivided beneficial interests in the assets of
the Trust, subject to the provisions of this Declaration.

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

         Section 1.1 Definitions. For all purposes of this Declaration, except
as otherwise expressly provided or unless the context otherwise requires:

                  (a)      capitalized terms used in this Declaration have the
respective meanings assigned to them in this Section 1.1;

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

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

                  (d)      a term defined in the Trust Indenture Act has the
same meaning when used in this Declaration unless otherwise defined in this
Declaration;

                  (e)      a reference to the singular includes the plural and
vice versa;

<PAGE>

                  (f)      all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with generally accepted
accounting principles in the United States; and

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

         "Additional Interest" means, if the Trust or the Property Trustee is
required to pay any taxes, duties, assessments or governmental charges of
whatever nature (other than withholding taxes) imposed by the United States or
any other taxing authority, such amounts as shall be required so that the net
amounts received and retained by the Trust and the Property Trustee after paying
such taxes, duties, assessments and governmental charges will not be less than
the amounts the Trust and the Property Trustee would have received had no such
taxes, duties, assessments or governmental charges been imposed.

         "Administrative Trustee" means each Person appointed in accordance with
Article V solely in such Person's capacity as Administrative Trustee of the
Trust and not in such Person's individual capacity, or any successor
Administrative Trustee appointed as herein provided.

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

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

         "Beneficial Owner" means a "beneficial owner" as defined in Rules 13d-3
and 13d-5 under the Exchange Act, including the provision of those rules that a
Person shall be deemed to have beneficial ownership of all securities that
Person has a right to acquire within 60 days; provided, that a Person shall not
be deemed a beneficial owner of, or to own beneficially, securities if the
beneficial ownership thereof:

                  (a)      arises solely as a result of a revocable proxy
         delivered in response to a proxy or consent solicitation made pursuant
         to, and in accordance with, the Exchange Act and the regulations
         thereunder; and

                  (b)      is not also then reportable on Schedule 13D (or any
         successor schedule) under the Exchange Act.

         "Board of Directors" means either the board of directors of the
Debenture Issuer or any duly authorized committee of that board.

         "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Debenture Issuer 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 Property Trustee.

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

                                     - 2 -

<PAGE>

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

         "Certificate" means a Trust Common Securities Certificate or a Trust
Preferred Securities Certificate.

         "Change of Control" means the occurrence of any of the following
events:

                  (a)      Any person (as such term is used in Sections 13(d)
and 14(d) of the Exchange Act and the regulations thereunder) is or becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the total Voting
Stock of the Debenture Issuer; provided that a Change of Control shall not be
deemed to occur pursuant to this paragraph (a)

                           (i)      if such Person has outstanding debt
         securities on the date of such event that had a maturity at original
         issuance of at least one year and that are rated Investment Grade by
         S&P, Moody's or another Rating Agency; or

                           (ii)     if the Total Common Equity of such person on
         the first trading day after the date of such event is at least
         $10,000,000,000.

                  (b)      The Debenture Issuer consolidates with or merges with
or into another Person or, directly or indirectly, conveys, transfers or leases
all or substantially all of its properties and assets on a consolidated basis to
any Person, or any Person consolidates with, or merges with or into, the
Debenture Issuer, in any such event pursuant to a transaction in which the
outstanding Voting Stock of the Debenture Issuer is converted into or exchanged
for cash, securities or other property; provided that a Change of Control shall
not be deemed to occur pursuant to this paragraph (b) as a result of a
transaction where the surviving or transferee Person in the transaction (or any
of its Affiliates) is a Person described in clause (i) or (ii) of paragraph (a)
above or as a result of any other transaction where

                           (i)      the outstanding Voting Stock of the
         Debenture Issuer is converted into or exchanged for Voting Stock (other
         than stock that is redeemable prior to the maturity date of the
         debentures) of the surviving or transferee Person; and

                           (ii)     immediately after such transaction no person
         (as such term is used in Sections 13(d) and 14(d) of the Exchange Act
         and the regulations thereunder) is the Beneficial Owner, directly or
         indirectly, of more than 50% of the Voting Stock or Common Stock of the
         surviving or transferee Person.

                  (c)      During any consecutive two-year period, individuals
who at the beginning of that period constituted the Board of Directors, together
with any directors who are members of the Board of Directors on the date of
original issuance of the Debentures and any new directors whose election by that
Board of Directors or whose nomination for election by the shareholders of the
Debenture Issuer was approved by a vote of 66-2/3% of the directors then still
in office who were either directors at the beginning of the period or whose
election or nomination for election was previously so approved), cease for any
reason to constitute a majority of the Board of Directors then in office.

         "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

                                     - 3 -

<PAGE>

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

         "Closing Date" means February 24, 2004 and, if the underwriters
exercise their option under the Underwriting Agreement to purchase additional
Trust Preferred Securities to cover overallotments, the date of closing of such
additional purchase, and each other date upon which Securities are issued
pursuant to and in accordance with the terms of this Declaration.

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

         "Commission" means the Securities and Exchange Commission.

         "Common Stock" means, in the case of a Person that is a corporation,
any capital stock of any class of such Person, and, in the case of any Person
that is not a corporation, any equity security of any class of such Person, in
each case which capital stock or equity security has no preference with respect
to dividends or to amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of such Person.

         "Compounded Interest" means interest compounded quarterly at the rate
specified for the Debentures to the extent permitted by applicable law upon
interest accrued and unpaid (including Additional Interest) at the end of each
Deferral Period.

         "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 WestCoast Hospitality Corporation, a
Washington corporation, or any successor entity in a merger, consolidation or
amalgamation, in its capacity as issuer of the Debentures.

         "Debentures" means the series of 9.5% Junior Subordinated Debentures
Due February 24, 2044, to be issued by the Debenture Issuer under the Indenture
to be held by the Property Trustee on behalf of the Trust, a specimen
certificate for such series of Debentures being Exhibit B hereto.

         "Declaration Event of Default" means, with respect to the Securities,
that an Indenture Event of Default has occurred and is continuing with respect
to the Debentures.

         "Deferral Period" has the meaning set forth in paragraph 2(a) of the
Terms.

         "Definitive Trust Preferred Securities Certificates" has the meaning
set forth in Section 9.4.

         "Delaware Trustee" has the meaning set forth in Section 5.2.

         "Depositary" means the Clearing Agency that is from time to time acting
as depositary for the Trust Preferred Securities and in whose name or in the
name of a nominee of that organization shall be registered a Global Certificate
and that shall undertake to effect book-entry transfers and pledges of the Trust
Preferred Securities.

         "Direct Action" has the meaning set forth in paragraph 6(c) of the
Terms.

                                     - 4 -

<PAGE>

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

         "DTC" means The Depository Trust Company, the initial Depositary.

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

         "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 Certificate" has the meaning set forth in Section 9.4.

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

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

         "Indenture" means the Indenture, dated as of February 24, 2004, between
the Debenture Issuer and the Indenture Trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued.

         "Indenture Trustee" means Wilmington Trust Company, not in its
individual capacity but solely in its capacity as trustee under the Indenture,
until a successor is appointed thereunder, and thereafter means such successor
trustee.

         "Indenture Event of Default" has the meaning specified in the
Indenture.

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

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

         "Investment Company Event" has the meaning set forth in the Terms.

         "Investment Grade" means a rating of at least BBB-, in the case of S&P,
or Baa3, in the case of Moody's (or if S&P or Moody's changes its rating system,
a comparable rating in such successor system), or a comparable rating of another
Rating Agency.

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

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

         "Majority in liquidation amount of the Securities," "Majority in
liquidation amount of the Trust Common Securities" "Majority in liquidation
amount of the Trust Preferred Securities" means, except as provided in the Terms
or by the Trust Indenture Act, Holder(s) of outstanding Securities voting
together as a single class, or Holder(s) of outstanding Trust Common Securities
or Holder(s) of outstanding Trust Preferred Securities voting separately as a
class, as the case may be, who are the record owners of more than 50% of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the

                                     - 5 -

<PAGE>

voting percentages are determined) of all outstanding Securities, Trust Common
Securities or Trust Preferred Securities, as the case may be.

         "Ministerial Action" has the meaning set forth in the Terms.

         "Moody's" means Moody's Investors Service, Inc.

         "No Recognition Opinion" has the meaning set forth in the Terms.

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

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

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

                  (iii)    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

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

         "Paying Agent" has the meaning specified in Section 7.2.

         "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.

         "Property Trustee" means the Trustee meeting the eligibility
requirements set forth in Section 5.3.

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

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

         "Rating Agency" means a "nationally recognized statistical rating
organization," as that term is defined for purposes of Rule 436(g)(2), or any
successor rule thereto, under the Securities Act.

         "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 Property Trustee, any
vice-president, any assistant vice-president, the treasurer, any assistant
treasurer, any trust officer or assistant trust officer, any financial services
officer or any other officer in the Corporate Trust Department of the Property
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of that officer's knowledge of and familiarity with the particular
subject.

                                     - 6 -

<PAGE>

         "Rights Plan" means a plan of the Debenture Issuer providing for the
issuance by the Debenture Issuer to all holders of its common stock of rights
entitling the holders thereof to subscribe for or purchase shares of common
stock or any class or series of preferred stock of the Debenture Issuer, which
rights (i) are deemed to be transferred with such shares of common stock, (ii)
are not exercisable and (iii) are also issued in respect of future issuances of
the common stock of the Debenture Issuer, in each case until the occurrence of a
specified event or events.

         "Rule 3a-5" means Rule 3a-5 under the Investment Company Act.

         "S&P" means Standard & Poor's Ratings Services.

         "Secretary of State" means the Secretary of State of the State of
Delaware.

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

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

         "Special Event" has the meaning set forth in the Terms.

         "Sponsor" means WestCoast Hospitality Corporation, a Washington
corporation, or any successor entity in a merger, consolidation or amalgamation,
in its capacity as sponsor of the Trust.

         "Sponsor Indemnified Person" means (a) any Administrative Trustee; (b)
any Affiliate of any Administrative Trustee; (c) any officer, director,
shareholder, member, partner, employee, representative or agent of any
Administrative Trustee; and (d) any officer, employee or agent of the Trust or
its Affiliates.

         "Statutory Trust Act" means the Delaware Statutory Trust Act, 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.

         "Subsidiary" of any Person means (i) a corporation more than 50% of the
outstanding Voting Stock of which is owned, directly or indirectly, by such
Person or by one or more other Subsidiaries of such Person or by such Person and
one or more Subsidiaries thereof or (ii) any other Person (other than a
corporation) with respect to which such Person, or one or more other
Subsidiaries of such Person or such Person and one or more other Subsidiaries
thereof, directly or indirectly, has at least a majority ownership or the power
to direct the policies, management and affairs thereof.

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

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

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

         "Tax Event" has the meaning set forth in the Terms.

         "10% in liquidation amount" of a class of Securities means, except as
provided in the Terms or by the Trust Indenture Act, Holders of outstanding
Securities of that class who are the record owners of 10% or more of the
aggregate liquidation amount (including the stated amount that would be paid on

                                     - 7 -

<PAGE>

redemption, liquidation or otherwise, plus accrued and unpaid Distributions to
the date upon which the voting percentages are determined) of all outstanding
Securities of that class.

         "Terms" means the terms of the Securities set forth in Annex I.

         "Total Common Equity" of any Person means, as of any day of
determination, the product of

                  (a)      the aggregate number of outstanding shares (or other
         units) of Common Stock of the Person on that day (excluding any Common
         Stock of the Person issuable upon exercise of outstanding options or
         warrants or upon conversion of outstanding convertible securities); and

                  (b)      the value of such Common Stock per share (or other
         unit) on that day (which, if such Common Stock is publicly traded,
         shall be the average of the closing prices of such Common Stock over
         the 20 consecutive trading days immediately preceding that day or, if
         such Common Stock is not publicly traded, the value of such Common
         Stock as determined by the Board of Directors in good faith and
         evidenced by a Board Resolution).

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

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

         "Trust Common Securities Certificate" means a definitive certificate in
fully registered form representing a Trust Common Security substantially in the
form of Exhibit A-2 hereto.

         "Trust Common Securities Guarantee" means the Trust Common Securities
Guarantee Agreement, dated as of February 24, 2004, of the Sponsor with respect
to the Trust Common Securities.

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

         "Trust Preferred Securities 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 Depositary, or on the books of a
Person maintaining an account with the Depositary (directly as a Clearing Agency
Participant or as an indirect participant, in each case in accordance with the
rules of such Depositary).

         "Trust Preferred Securities Certificate" means a certificate
representing a Trust Preferred Security substantially in the form of Exhibit A-1
hereto.

         "Trust Preferred Securities Guarantee" means the Trust Preferred
Securities Guarantee Agreement, dated as of February 24, 2004, of the Sponsor
with respect to the Trust Preferred Securities.

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

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

                                     - 8 -

<PAGE>

         "Underwriting Agreement" means the Underwriting Agreement for the
offering and sale of Trust Preferred Securities in the form of Exhibit C hereto.

         "Voting Stock" of any Person means capital stock or other equity
securities of such Person that ordinarily have voting power for the election of
directors (or Persons performing similar functions) of such Person, whether at
all times or only so long as no senior class of securities has such voting power
by reason of any contingency.

                                   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 made part of this Declaration, and
this Declaration shall, to the extent applicable, be governed by such
provisions.

                  (b)      The Property Trustee shall be the only Trustee that
is a "trustee" for the purposes of the provisions 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 any
provisions of Sections 310 to 317, inclusive, of the Trust Indenture Act, such
imposed duties shall control.

                  (d)      The application of the provisions of the Trust
Indenture Act referred to above 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 the Property Trustee (i) within 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 of the Securities ("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 the List of
Holders does not differ from the most recent List of Holders given to the
Property Trustee by the Sponsor and the Administrative Trustees on behalf of the
Trust, and (ii) at any other time, within 30 days of 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 Lists of Holders given to it or that 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
December 31 of each year, commencing December 31, 2004, the Property Trustee
shall provide to the Holders of the Trust 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. A copy of each such report shall, at

                                     - 9 -

<PAGE>

the time of transmission to the Holders, be filed by the Property Trustee with
each stock exchange, if any, on which the Trust Preferred Securities are listed,
with the Commission and with the Trust. The Administrative Trustees will
promptly notify the Property Trustee whenever the Trust Preferred Securities are
listed on any stock exchange or delisted therefrom.

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

         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, if any, 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) may
be given in the form of an Officers' Certificate.

         Section 2.6 Declaration Events of Default; Waiver.

                  (a)      Subject to Section 2.6(c), the Holders of a Majority
in liquidation amount of Trust Preferred Securities may, by vote, on behalf of
the Holders of all of the Trust Preferred Securities, waive any past Declaration
Event of Default in respect of the Trust Preferred Securities and its
consequences, provided that, if the underlying Indenture Event of Default:

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

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

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

         The foregoing provisions of this Section 2.6(a) 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 Declaration Event of Default with
respect to the Trust 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 a Declaration Event of Default with
respect to the Trust Preferred Securities or impair any right consequent
thereon. Any waiver by the Holders of the Trust Preferred Securities of a
Declaration Event of Default with respect to the Trust Preferred Securities
shall also be deemed to constitute a waiver by the Holders of the Trust Common
Securities of any such Declaration Event of Default with respect to the Trust
Common Securities for all

                                     - 10 -

<PAGE>

purposes of this Declaration without any further act, vote or consent of the
Holders of the Trust Common Securities.

                  (b)      Subject to Section 2.6(c), the Holders of a Majority
in liquidation amount of the Trust Common Securities may, by vote, on behalf of
the Holders of all of the Trust Common Securities, waive any past Declaration
Event of Default with respect to the Trust Common Securities and its
consequences, provided that, if the underlying Indenture Event of Default:

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

                           (ii)     requires the consent or vote of a Super
         Majority to be waived, except where the Holders of the Trust Common
         Securities are deemed to have waived such Declaration Event of Default
         as provided below in this Section 2.6(b), the Declaration Event of
         Default may only be waived by the vote of the Holders of at least the
         proportion in liquidation amount of the Trust Common Securities that
         the relevant Super Majority represents of the aggregate principal
         amount of the Debentures outstanding; provided further, that each
         Holder of Trust Common Securities will be deemed to have waived any
         such Declaration Event of Default and all Declaration Events of Default
         with respect to the Trust Common Securities and its consequences until
         all Declaration Events of Default with respect to the Trust Preferred
         Securities have been cured, waived or otherwise eliminated, and until
         such Declaration 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 Trust Preferred Securities and
         only the Holders of the Trust Preferred Securities will have the right
         to direct the Property Trustee in accordance with the Terms.

         The foregoing provisions of this Section 2.6(b) 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(b),
upon such waiver, any such default shall cease to exist and any Declaration
Event of Default with respect to the Trust 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 Declaration Event
of Default with respect to the Trust Common Securities or impair any right
consequent thereon.

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

                  (d)      A waiver of an Indenture Event of Default by the
Property Trustee at the direction of the Holders of the Trust Preferred
Securities constitutes a waiver of the corresponding Declaration Event of
Default. 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.

                                     - 11 -

<PAGE>

         Section 2.7 Event of Default; Notice.

                  (a)      The Property Trustee shall, within 90 days after a
Responsible Officer of the Property Trustee obtains actual knowledge of the
occurrence of a Declaration Event of Default, transmit by mail, first class
postage prepaid, to the Holders of the Securities, notices of all defaults with
respect to the Securities actually known to a Responsible Officer of the
Property Trustee, unless such defaults have been cured before the giving of such
notice (the term "defaults" for the purposes of this Section 2.7(a) being hereby
defined to be an Indenture 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 a default in the payment of principal of (or
premium, if any) or interest on any of the Debentures, the Property Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee, or a trust committee of directors and/or
Responsible Officers of the Property Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders of the Securities.

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

                           (i)      a default under Sections 5.1(a) and 5.1(b)
         of the Indenture; or

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

                  (c)      The Sponsor shall deliver to the Property Trustee,
within 120 days after the end of each fiscal year of the Sponsor ending after
the date hereof, an Officers' Certificate covering such fiscal year stating
whether or not, to the best knowledge of the signers thereof, the Sponsor or the
Administrative Trustees are in default in the performance and observance of any
of the material terms, provisions and conditions of this Declaration (without
regard to any period of grace or requirement of notice provided hereunder) and,
if the Sponsor or the Administrative Trustees shall be in default, specifying
all such defaults and the nature and status thereof of which they may have
knowledge.

                                   ARTICLE III
                                  ORGANIZATION

         Section 3.1 Name. The Trust is named "WestCoast Hospitality Capital
Trust," as such name may be modified from time to time by the Administrative
Trustees following written notice to the Holders of the Securities and to the
other Trustees. 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 WestCoast Hospitality Corporation, 201 W. North River Drive, Spokane,
Washington 99201, Attention: Chief Financial Officer. On ten Business Days
written notice to the Property Trustee and the Holders of the 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 and use the proceeds from such sale to
acquire the Debentures, and (b) except as otherwise limited herein, to engage in
only those other activities necessary or incidental thereto. The Trust shall not
borrow money, issue debt or reinvest proceeds derived from investments, pledge
any of its assets, or otherwise undertake (or permit to be undertaken) any
activity that would cause the Trust not to be classified for U.S. federal income
tax purposes as a grantor trust. It is the intent of the parties to this
Declaration that (a) the Trust be classified for U.S. federal income tax
purposes as a grantor trust under

                                     - 12 -

<PAGE>

Subpart E of Subchapter J of the Code, (b) the Holders will be the owners of the
Trust for U.S. federal income tax purposes, and (c) there shall be included in
computing the taxable income of the Holders for U.S. federal income tax purposes
their respective shares of the income, deductions and credits of the Trust as if
the Trust did not exist. By accepting this Declaration or any benefits under
this Declaration or under any Securities, each of the Sponsor, the Trustees, the
Holders and the Trust Preferred Securities Beneficial Owners shall be deemed to
have agreed not to take any position for U.S. federal income tax purposes that
is contrary to or inconsistent with the classification of the Trust as a grantor
trust for U.S. federal income tax purposes.

         Section 3.4 Authority.

                  (a)      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. Any action taken by the Administrative Trustees on
behalf of the Trust 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.

                  (b)      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.

                  (c)      Unless otherwise determined by the Administrative
Trustees, and except as expressly set forth in this Declaration or as otherwise
required by the Statutory Trust Act or applicable law, any Administrative
Trustee is authorized to execute on behalf of the Trust any documents that the
Administrative Trustees have the power and authority to cause the Trust to
execute; provided, that the registration statement referred to in Section
3.6(b)(i), including any amendments thereto, shall be signed by all of the
Administrative Trustees.

                  (d)      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 that the
Administrative Trustees have power and authority to cause the Trust to execute
pursuant to Section 3.6.

         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 Trust Preferred Securities and
the Trust Common Securities in accordance with this Declaration; provided,
however, that the Trust may issue no more than one series of Trust Preferred
Securities and no more than one series of Trust Common Securities; and,
provided, further, that there shall be no interests in the Trust other than the
Securities, and the issuance of Securities shall be limited to the simultaneous
issuance of both Trust Common Securities (as specified in Section 4.1) and Trust
Preferred Securities on each Closing Date;

                                     - 13 -

<PAGE>

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

                           (i)      execute and file with the Commission the
         registration statement on Form S-1 prepared by the Sponsor, including
         any amendments thereto, pertaining to, among other securities, the
         Trust Preferred Securities;

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

                           (iii)    execute and file an application, prepared by
         the Sponsor, with the New York Stock Exchange, the Nasdaq National
         Market or any other securities exchange or automated quotation system
         for listing or quotation upon notice of issuance of any Trust Preferred
         Securities;

                           (iv)     execute and deliver to DTC, and to any other
         Clearing Agency that from time to time may be acting as Depositary for
         the Trust Preferred Securities, letters, documents and instruments
         evidencing or relating to the depositary relationship with respect to
         the Trust 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 Trust
         Preferred Securities under Section 12(b) of the Exchange Act;

                           (vi)     execute and enter into the Underwriting
         Agreement providing for the sale of the Trust Preferred Securities; and

                           (vii)    execute and enter into other related
         agreements in connection with the sale of the Trust Preferred
         Securities.

                  (c)      to acquire the Debentures with the proceeds of the
sale of the Trust Preferred Securities and the Trust 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 on
behalf of the Trust for the benefit of the Holders of the Trust Preferred
Securities and the Holders of the Trust Common Securities;

                  (d)      to give the Sponsor and the Property Trustee prompt
written notice of the occurrence of a Special Event; provided that the
Administrative Trustees shall consult with the Sponsor and the Property Trustee
before taking or refraining from taking any Ministerial Action in relation to 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 the Trust Preferred Securities and the
Holders of the Trust 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;

                                     - 14 -

<PAGE>

                  (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 and transfer agent for the Securities;

                  (m)      to give prompt written notice to the Holders of the
Securities of any notice received from the Debenture Issuer of its selection,
extension or shortening of a Deferral Period;

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

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

                  (p)      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 U.S.
         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 U.S. federal income tax purposes; provided that
         such action does not adversely affect the interests of Holders; and

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

                                     - 15 -

<PAGE>

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 Sponsor.

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

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

                           (i)      invest any proceeds received by the Trust
         from holding the Debentures, but shall distribute all such proceeds to
         Holders of Securities 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 loans or incur any indebtedness
         other than loans represented by the Debentures;

                           (v)      possess any power or otherwise act in such a
         way as to vary the Trust assets or the Terms in any way whatsoever
         other than as expressly permitted hereby;

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

                           (vii)    other than as provided in this Declaration
         or Annex I hereto, (A) direct the time, method and place of exercising
         any trust or power conferred upon the Indenture Trustee with respect to
         the Debentures, (B) waive any past default that is waivable under the
         Indenture, (C) exercise any right to rescind or annul any declaration
         that the principal of all the Debentures shall be due and payable, or
         (D) 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 counsel to the effect that
         such amendment, modification or termination will not cause more than an
         insubstantial risk that the Trust will be deemed an Investment Company
         required to be registered under the Investment Company Act; or

                           (viii)   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 counsel
         to the effect that such amendment, modification or termination will not
         cause more than an insubstantial risk that the Trust will not be
         classified as a grantor trust for U.S. federal income tax purposes.

                                     - 16 -

<PAGE>

         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 Trust and 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 Trust and the Holders of the Securities 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 to the Holders of the Trust Preferred
         Securities and Holders of the Trust Common Securities from the Property
         Trustee Account in accordance with Section 6.1 (the Property Trustee
         Account shall be an account that is maintained by a banking institution
         the long-term indebtedness of which is rated at least "A" by a Rating
         Agency, and funds in the Property Trustee Account shall be held
         uninvested until disbursed in accordance with this Declaration);

                           (ii)     engage in such ministerial activities as so
         directed and as shall be necessary or appropriate to effect the
         redemption of the Trust Preferred Securities and the Trust Common
         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, engage in
         such ministerial activities as so directed and as shall be necessary or
         appropriate to effect the distribution of the Debentures to Holders of
         Securities upon the occurrence of a Special Event arising from a change
         in law or a change in legal interpretation or other specified
         circumstances pursuant to the Terms.

                  (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 this Declaration.

                  (e)      Subject to Section 3.9(a), the Property Trustee shall
take any Legal Action that arises out of or in connection with a Declaration
Event of Default of which a Responsible Officer of the Property Trustee has
actual knowledge, the Property Trustee's duties and obligations under this
Declaration or the provisions of the Trust Indenture Act referred to in Section
2.1(a).

                  (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 of
         Securities pursuant to the Terms; or

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

                                     - 17 -

<PAGE>

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

                  (h)      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.

                  (i)      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 in a manner that
is consistent with the purposes and functions of the Trust set out in Section
3.3, and (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.

         Section 3.9 Certain Duties and Responsibilities of the Property
Trustee.

                  (a)      The Property Trustee, before the occurrence of any
Declaration Event of Default and after the curing or waiver of all Declaration
Events of Default that may have occurred, shall undertake to perform only such
duties as are specifically set forth in this Declaration and no implied
covenants shall be read into this Declaration against the Property Trustee. In
case a Declaration Event of Default has occurred (that has not been cured or
waived pursuant to Section 2.6) of which a Responsible Officer of the Property
Trustee 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 such person's own affairs.

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

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

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

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

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

                                     - 18 -

<PAGE>

                           (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
         property for its fiduciary accounts generally, subject to the
         protections and limitations on liability afforded to the Property
         Trustee under this Declaration, the Statutory Trust Act 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, in the absence of
         bad faith, 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 reasonably 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 shall 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 rely upon an Officers'

                                     - 19 -

<PAGE>

         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 of its choice or other experts 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 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 adequate security
         and indemnity, reasonably satisfactory to the Property Trustee, against
         the reasonable costs, expenses (including reasonable attorneys' fees
         and expenses and the reasonable 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)(vii) shall be
         taken to relieve the Property Trustee, upon the occurrence of a
         Declaration 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, security, 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 see fit;

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

                           (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 of the Securities, 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 in respect of such remedy, right or action,
         (ii) may refrain from

                                     - 20 -

<PAGE>

         enforcing such remedy or right or taking such other action until such
         instructions are received, and (iii) shall be protected in acting in
         accordance with such instructions;

                           (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
         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, except
as required under the Statutory Trust Act, 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 Statutory Trust Act.

         Section 3.12 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 3.13 Duration of Trust. The Trust, unless earlier dissolved
pursuant to the provisions of Article VIII hereof, shall dissolve on December
31, 2044.

         Section 3.14 Mergers.

                  (a)      The Trust may not consolidate, amalgamate, merge with
or into, or be replaced by, or convey, transfer or lease its properties and
assets substantially as an entirety, to any Person, except as described in
Section 3.14(b) and (c).

                  (b)      The Trust may, with the consent of a Quorum of the
Administrative Trustees and without the consent of the Holders of the
Securities, the Delaware Trustee or the Property Trustee, consolidate,
amalgamate, merge with or into, or be replaced by a trust organized as such
under the laws of any State of the United States; provided that:

                           (i)      if the Trust is not the survivor, such
         successor entity (the "Successor Entity") either:

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

                                     - 21 -

<PAGE>

                                    (B)      substitutes for the Trust Preferred
         Securities other securities (the "Successor Preferred Securities") that
         have substantially the same terms as the Trust Preferred Securities and
         that rank the same as the Trust Preferred Securities with respect to
         Distributions, assets and payments upon liquidation, redemption and
         otherwise, and substitutes for the Trust Common Securities other
         securities (the "Successor Common Securities" and, together with the
         Successor Preferred Securities, the "Successor Securities") that have
         substantially the same terms as the Trust Common Securities and that
         rank the same as the Trust Common Securities with respect to
         Distributions, assets and payments upon liquidation, redemption and
         otherwise;

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

                           (iii)    the Trust Preferred Securities or any
         Successor Preferred Securities are listed, or any Successor Preferred
         Securities will be listed upon notification of issuance, on any
         securities exchange or automated quotation system on which the Trust
         Preferred Securities are then listed or quoted;

                           (iv)     such merger, consolidation, amalgamation or
         replacement does not cause the Trust Preferred Securities (including
         any Successor Preferred Securities) to be downgraded by any Rating
         Agency;

                           (v)      such merger, consolidation, amalgamation or
         replacement does not adversely affect the rights, preferences and
         privileges of the Holders of the Securities (including any Successor
         Securities) in any material respect;

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

                           (vii)    the Sponsor guarantees the obligations of
         such Successor Entity under the Successor Preferred Securities at least
         to the extent provided by the Trust Preferred Securities Guarantee; and

                           (viii)   prior to such merger, consolidation,
         amalgamation or replacement, the Sponsor has received an opinion of
         independent counsel to the Trust reasonably acceptable to the Property
         Trustee experienced in such matters to the effect that:

                                    (A)      such merger, consolidation,
         amalgamation or replacement will not adversely affect the rights,
         preferences and privileges of the Holders of the Securities (including
         any Successor Securities) in any material respect;

                                    (B)      following such merger,
         consolidation, amalgamation or replacement, the Sponsor will own,
         directly or indirectly, all of the Successor Common Securities;

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

                                    (D)      following such merger,
         consolidation, amalgamation or replacement, the Trust (or the Successor
         Entity) will be treated as a grantor trust for U.S. federal income tax
         purposes.

                                     - 22 -

<PAGE>

                  (c)      Notwithstanding Section 3.14(b), the Trust shall not,
except with the consent of Holders of 100% in liquidation amount of the Trust
Common Securities, consolidate, amalgamate, merge with or into, or be replaced
by any other entity or permit any other entity to consolidate, amalgamate, merge
with or into, or replace it if such consolidation, amalgamation, merger or
replacement would cause the Trust or Successor Entity to be classified as other
than a grantor trust for U.S. federal income tax purposes.

                                   ARTICLE IV
                                     SPONSOR

         Section 4.1 Sponsor's Purchase of Trust Common Securities. On the
Closing Date, the Sponsor will purchase all of the Trust Common Securities
issued by the Trust on such date, in an amount that, when taken together with
all other Trust Common Securities then owned by the Sponsor, at least equals 3%
of the capital of the Trust, after giving effect to the issuance of Trust
Preferred Securities on such date.

         Section 4.2 Responsibilities of the Sponsor. In connection with the
issue and sale of the Trust Preferred Securities, the Sponsor shall have the
exclusive right and responsibility to engage in the following activities:

                  (a)      to prepare for filing by the Trust with the
Commission a registration statement on Form S-1 in relation to, among other
securities, the Trust Preferred Securities, including any amendments thereto;

                  (b)      to determine the States and foreign jurisdictions, if
any, in which to take appropriate action to qualify or register for sale all or
part of the Trust Preferred Securities and to do any and all such acts, other
than actions that 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 and foreign jurisdictions;

                  (c)      to prepare for filing by the Trust an application to
the New York Stock Exchange, the Nasdaq National Market or any other securities
exchange or automated quotation system for listing or quotation upon notice of
issuance of any Trust Preferred Securities;

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

                  (e)      to negotiate the terms of the Underwriting Agreement
providing for the sale of the Trust Preferred Securities; and

                  (f)      to negotiate the terms of other related agreements in
connection with the sale of the Trust Preferred Securities.

         Section 4.3 Right of Holders to Bring Direct Action. The Sponsor
acknowledges that the Holders of the Trust Preferred Securities shall have the
right to institute a Direct Action to the extent set forth in the Terms.

                                     - 23 -

<PAGE>

                                    ARTICLE V
                                    TRUSTEES

         Section 5.1 Number of Trustees. The number of Trustees shall initially
be four, 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 Trust Common Securities voting as a class at a meeting
of the Holders of the Trust Common Securities; provided, however, that the
number of Trustees shall in no event be less than two; provided further that (1)
the Delaware Trustee, in the case of a natural person, shall be a person who is
a resident of the State of Delaware or, if not a natural person, shall be an
entity that has its principal place of business in the State of Delaware; (2) at
least one Administrative Trustee shall be an employee or officer of, or
affiliated with, the Sponsor; and (3) one Trustee shall be the Property Trustee,
and such Trustee may also serve as Delaware Trustee if it meets the applicable
requirements.

         Section 5.2 Delaware Trustee. If required by the Statutory Trust Act,
one Trustee (the "Delaware Trustee") shall be:

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

                  (b)      if not a natural person, an entity that 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 Delaware
Trustee shall accept service of process on the Trust in the State of Delaware
and execute any certificates presented to it in execution form and filed under
the Statutory Trust Act.

         Section 5.3 Property Trustee; Eligibility.

                  (a)      There shall at all times be one Trustee that shall
act as Property Trustee that shall:

                           (i)      not be an Affiliate of the Sponsor;

                           (ii)     be a corporation organized and doing
         business under the laws of the United States of America or any state or
         territory thereof or of the District of Columbia, or a 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 Person 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 Person shall be deemed to be its combined
         capital and surplus as set forth in its most recent report of condition
         so published; and

                           (iii)    if the Trust is excluded from the definition
         of an Investment Company solely by means of Rule 3a-5 and to the extent
         Rule 3a-5 requires a trustee having certain

                                     - 24 -

<PAGE>

         qualifications to hold title to the "eligible assets" of the trust, the
         Property Trustee shall possess those qualifications.

                  (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 or become a creditor of the Sponsor during the time periods
specified in Section 311 of the Trust Indenture Act, the Property Trustee and
the Holders of the Trust Common Securities (as if they 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) and Section 311 of the Trust Indenture
Act, as applicable.

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

                  (e)      The initial Property Trustee shall be set forth in
Section 5.5 hereof.

         Section 5.4 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.

         Section 5.5 Administrative Trustees; Initial Trustees.

                  (a)      Except as otherwise 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 Statutory Trust Act or
applicable law, any one of the Administrative Trustees 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.

                  (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 that the
Administrative Trustees have power and authority to cause the Trust to execute
pursuant to Section 3.6.

                  (d)      The initial Administrative Trustees shall be:

                           Peter P. Hausback and Thomas L. McKeirnan
                           c/o WestCoast Hospitality Corporation
                           201 W. North River Drive
                           Spokane, Washington 99201

                                     - 25 -

<PAGE>

The initial Delaware Trustee and Property Trustee shall be:

                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, Delaware 19890
                           Attention:  Corporate Trust Administration

         Section 5.6 Appointment, Removal and Resignation of Trustees.

                  (a)      Subject to Sections 5.6(b) and 5.6(c), Trustees may
be appointed or removed without cause at any time as follows:

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

                           (ii)     after the issuance of any Securities, by
         vote of the Holders of a Majority in liquidation amount of Trust Common
         Securities voting as a class at a meeting of the Holders of the Trust
         Common Securities; provided, that, the Property Trustee and the
         Delaware Trustee may only be removed and replaced as provided in clause
         (iii) if a Declaration Event of Default has occurred and is continuing;
         and

                           (iii)    after the issuance of any Securities, if a
         Declaration Event of Default has occurred and is continuing, the
         Property Trustee and/or the Delaware Trustee may be appointed or
         removed by vote of the Holders of a Majority in liquidation amount of
         Trust Preferred Securities voting as a class at a meeting of the
         Holders of the Trust Preferred Securities.

                  (b)      The Trustee that acts as Property Trustee shall not
be removed in accordance with Section 5.6(a) until a successor Trustee
possessing the qualifications to act as Property Trustee under Section 5.3 (a
"Successor Property Trustee") has been appointed and has accepted such
appointment by written instrument executed by such Successor Property Trustee
and delivered to the Administrative Trustees and the Sponsor.

                  (c)      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.

                  (d)      A Trustee appointed to office shall hold office until
such Trustee's successor shall have been appointed or until such Trustee's
death, dissolution, termination, 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 written
         instrument executed by such Successor Property Trustee and delivered to
         the Trust, the Sponsor and the resigning Property Trustee; or

                                     - 26 -

<PAGE>

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

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

                  (e)      The Holders of the Trust Common Securities shall use
their best efforts to promptly appoint a Successor Property Trustee or Successor
Delaware Trustee, as the case may be, if the Property Trustee or the Delaware
Trustee delivers an instrument of resignation or is removed in accordance with
this Section 5.6, unless an Indenture Event of Default has occurred and is
continuing and, pursuant to Section 5.6(a) the right to appoint a Successor
Property Trustee or Successor Delaware Trustee requires the vote of the Holders
of a Majority in liquidation amount of Trust Preferred Securities.

                  (f)      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 pursuant to this Section 5.6
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, appoint a Successor Property Trustee or
Successor Delaware Trustee, as the case may be.

                  (g)      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.

         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
a Quorum 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) at least 48 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) at least 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

                                     - 27 -

<PAGE>

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 of the Administrative Trustees is present, or without a meeting and
without notice 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.

         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 Person into which the Property Trustee or the Delaware Trustee, as
the case may be, may be merged or converted or with which either may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Property Trustee or the Delaware Trustee, as the case
may be, shall be a party, or any Person succeeding to all or substantially all
the corporate trust business of the 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 Person 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; provided,
however, that a Successor Delaware Trustee shall promptly file an amendment to
the Certificate of Trust of the Trust with the Secretary of State in accordance
with the Statutory Trust Act.

                                   ARTICLE VI
                                  DISTRIBUTIONS

         Section 6.1 Distributions. Holders shall receive Distributions (as
defined herein) in accordance with the applicable terms of the relevant Holder's
Securities. Distributions shall be made on the Trust Preferred Securities and
the Trust Common Securities in accordance with the respective preferences set
forth in the Terms. If and to the extent that the Debenture Issuer makes a
payment of interest (including Compounded Interest and Additional Interest),
premium and/or principal on the Debentures held by the Property Trustee (the
amount of any such payment being a "Payment Amount"), the Property Trustee shall
and is directed, to the extent funds are available for that purpose, to make a
distribution (a "Distribution") of the Payment Amount to Holders.

                                     - 28 -

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                                   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 trust preferred securities, representing undivided
beneficial interests in the assets of the Trust (the "Trust Preferred
Securities"), having such terms as are set forth in the Terms, and one class of
trust common securities, representing undivided beneficial interests in the
assets of the Trust (the "Trust Common Securities"), having such terms as are
set forth in the Terms. The Terms are hereby incorporated into this Declaration
and shall constitute part of the governing instrument of the Trust. The Trust
shall not issue any securities or other interests in the assets of the Trust
other than the Trust Preferred Securities and the Trust Common Securities. The
Trust shall not issue any Securities in bearer form. The Trust may issue
fractions of Securities.

                  (b)      The Certificates shall be signed on behalf of the
Trust by an Administrative Trustee. Such signature shall be the manual or
facsimile signature of any present or any future Administrative Trustee. In case
any Administrative Trustee who shall have signed any of the Certificates shall
cease to be such Administrative Trustee before the Certificates so signed shall
be delivered by the Trust, such Certificates nevertheless may be delivered as
though the person who signed such Certificates had not ceased to be such
Administrative Trustee; and any Certificates may be signed on behalf of the
Trust by such person who, at the actual date of execution of such Certificate,
shall be an Administrative Trustee, although at the date of the execution and
delivery of this Declaration any such person was not such an Administrative
Trustee. Certificates may be printed, lithographed or engraved or may be
produced in any other manner as is reasonably acceptable to an Administrative
Trustee, as evidenced by his or her execution thereof, and may have such
letters, numbers, notations or other marks of identification or designation and
such legends or endorsements required by law, agreements to which the Trust is
subject, if any, any rule or regulation of any securities exchange or automated
quotation system on which the Securities may be listed or traded, 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. The
Terms 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 to be bound thereby.

                  (c)      At the time of the delivery of the Trust Preferred
Securities, the Administrative Trustees shall cause one or more Trust Preferred
Securities Certificates to be authenticated by the Property Trustee on behalf of
the Trust and delivered to or upon the written order of the Trust, signed by one
Administrative Trustee without further corporate action by the Sponsor, in
authorized denominations. A Trust Preferred Securities Certificate shall not be
valid until the Trust Preferred Securities Certificate therefor has been
authenticated by the manual signature of an authorized signatory of the Property
Trustee. The signature shall be conclusive evidence that the Trust Preferred
Securities Certificate has been authenticated under this Declaration. Each Trust
Preferred Securities Certificate shall be dated the date of its authentication.

                  (d)      The Property Trustee may appoint an authenticating
agent acceptable to the Trust to authenticate Trust Preferred Securities
Certificates. An authenticating agent may authenticate Trust Preferred
Securities Certificates 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, and may itself be an
Affiliate of the Trust or a Related Party of the Sponsor.

                                     - 29 -

<PAGE>

                  (e)      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.

                  (f)      Upon issuance of the Securities as provided in this
Declaration, the Securities so issued shall be deemed to be validly issued and
fully paid and, to the fullest extent permitted by applicable law, the Trust
Preferred Securities shall be deemed to be nonassessable.

                  (g)      Every Person, by virtue of having become a Holder or
a Trust Preferred Securities 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.

                  (h)      The Securities shall have no preemptive rights.

         Section 7.2 Paying Agent. In the event that the Securities are not in
book-entry-only form, the Trust shall authorize one or more Persons (each, a
"Paying Agent") to pay Distributions, redemption payments or liquidation
payments on behalf of the Trust with respect to all Securities and any such
Paying Agent shall comply with Section 317(b) of the Trust Indenture Act. Any
Paying Agent may be removed by the Trust at any time and a successor Paying
Agent or additional Paying Agents may be appointed at any time by the Trust, in
each case without prior notice to any Holder. If the Trust fails to appoint or
maintain another entity as Paying Agent, the Property Trustee shall act as such.
The Property Trustee is hereby appointed to initially act as Paying Agent for
the Securities. Any successor Paying Agent or any additional paying Agent shall
execute and deliver to the Trustees an instrument in which such successor Paying
Agent or additional Paying Agent shall agree with the Trustees that as Paying
Agent, such successor Paying Agent or additional Paying Agent will hold all
sums, if any, held by it for payment to the Holders in trust for the benefit of
the Holders entitled thereto until such sums shall be paid to such Holders, will
give the Property Trustee notice of any default by the Trust (or any other
obligor on the Securities) in the making of any payment on the Securities and
will, at any time during the continuance of any such default, upon the written
request of the Property Trust, forthwith pay to the Property Trustee all sums so
held in trust by such Paying Agent. The Paying Agent shall return all unclaimed
funds to the Property Trustee and upon removal of a Paying Agent such Paying
Agent shall also return all funds in its possession to the Property Trustee. Any
reference in this Declaration to the Paying Agent shall include any co-paying
agent unless the context requires otherwise.

                                  ARTICLE VIII
                              TERMINATION OF TRUST

         Section 8.1 Termination of Trust.

                  (a)      The Trust shall dissolve upon the occurrence of the
first of the following to occur:

                           (i)      on December 31, 2044, the expiration date of
         the Trust;

                           (ii)     upon the bankruptcy of the Sponsor;

                           (iii)    upon the filing of a certificate of
         dissolution or its equivalent with respect to the Sponsor, the filing
         of a certificate of cancellation with respect to the Trust after having
         obtained the consent of the Holders of at least a Majority in
         liquidation amount of the Securities, voting together as a single class
         to file such certificate of cancellation, or the revocation of the
         charter of the Sponsor and the expiration of 90 days after the date of
         revocation without a reinstatement thereof;

                                     - 30 -

<PAGE>

                           (iv)     upon the entry of a decree of judicial
         dissolution of the Sponsor or the Trust;

                           (v)      upon the occurrence and continuation of a
         Special Event pursuant to which the Debentures shall have been
         distributed to the Holders of Securities in exchange for all of the
         Securities;

                           (vi)     before the issuance of any Securities, with
         the consent of all the Administrative Trustees and the Sponsor; or

                           (vii)    when all of the Securities shall have been
         called for redemption and the amounts necessary for redemption thereof,
         including any Additional Interest and Compounded Interest, shall have
         been paid to the Holders in accordance with the Terms.

                  (b)      Subject to the Terms, following dissolution of the
Trust, the Trustees shall liquidate any remaining Trust property and pay or
provide for all claims of creditors of the Trust.

                  (c)      As soon as is practicable after the occurrence of an
event referred to in Section 8.1(a), the Administrative Trustees shall file with
the Secretary of State a certificate of cancellation of the Certificate of Trust
of the Trust and the Trust shall terminate.

                  (d)      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. 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, Trust Preferred
Securities shall be freely transferable.

                  (c)      Subject to this Article IX, the Sponsor and any
Related Party may only transfer Trust Common Securities in whole to the Sponsor
or a Related Party of the Sponsor; provided that, any such transfer is subject
to the condition precedent that the transferor obtain the written opinion of
independent counsel experienced in such matters that such transfer would not
cause more than an insubstantial risk that:

                           (i)      the Trust would not be classified for U.S.
         federal income tax purposes as a grantor trust; and

                           (ii)     the Trust would be an Investment Company or
         the transferee would become an Investment Company.

                  (d)      The Administrative Trustees shall cause each Trust
Common Securities Certificate issued to the Sponsor to contain a legend stating:
"TO THE EXTENT PERMITTED BY APPLICABLE LAW, THIS CERTIFICATE IS NOT TRANSFERABLE
EXCEPT TO THE SPONSOR

                                     - 31 -

<PAGE>

OR A RELATED PARTY OF THE SPONSOR IN COMPLIANCE WITH APPLICABLE LAW AND ARTICLE
IX OF THE DECLARATION."

                  (e)      The Trust shall not be required to issue Trust
Preferred Securities during a period beginning at the opening of business 15
days before the day of any selection of Trust Preferred Securities for
redemption set forth in the Terms and ending at the close of business on the day
of selection.

                  (f)      For so long as the Securities remain outstanding, the
Sponsor covenants (i) to use its reasonable efforts to cause the Trust (A) to
remain a statutory trust under the Statutory Trust Act, except in connection
with a distribution of Debentures to the Holders of Securities in liquidation of
the Trust, the redemption of all Securities or certain mergers, consolidations
or amalgamations, each as permitted by this Declaration and (B) to continue to
be classified as a grantor trust, and not as an association taxable as a
corporation or a partnership, for U.S. federal income tax purposes, and (ii) to
use its reasonable efforts to cause each Holder of Securities to be treated as
owning an undivided beneficial interest in the Debentures.

         Section 9.2 Transfer of Certificates. The Administrative Trustees shall
provide for the registration of Certificates and of transfers of Certificates,
which will be effected without charge but only upon payment (with such indemnity
as the 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 Certificate, the Administrative Trustees shall
cause one or more new Certificates to be issued in the name of the designated
transferee or transferees. Every Certificate surrendered for registration of
transfer shall be accompanied by a written instrument of transfer in form
satisfactory to the Administrative Trustees duly executed by the Holder or such
Holder's attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer shall be canceled by the Administrative Trustees. A
transferee of a Certificate shall be entitled to the rights and subject to the
obligations of a Holder hereunder upon the receipt by such transferee of a
Certificate. By acceptance of a Certificate, each transferee shall be deemed to
have agreed to be bound by this Declaration.

         Section 9.3 Deemed Security Holders. The Trustees may treat the Person
in whose name any Certificate shall be registered on the books and records of
the Trust as the sole holder of such Certificate and of the Securities
represented by such Certificate for purposes of receiving Distributions and for
all other purposes whatsoever and, accordingly, shall not be bound to recognize
any equitable or other claim to or interest in such Certificate or in the
Securities represented by such Certificate on the part of any Person, whether or
not the Trust shall have actual or other notice thereof.

         Section 9.4 Book-Entry Interests. Unless otherwise specified in the
Terms, the Trust Preferred Securities Certificates, on original issuance, will
be issued in the form of one or more, fully registered, global Trust Preferred
Securities Certificates (each a "Global Certificate"), to be delivered to DTC,
the initial Depositary, by, or on behalf of, the Trust. Such Global
Certificate(s) shall initially be registered on the books and records of the
Trust in the name of Cede & Co., the nominee of DTC, and no Trust Preferred
Securities Beneficial Owner will receive a Definitive Trust Preferred Securities
Certificate representing such Trust Preferred Securities Beneficial Owner's
interests in such Global Certificate(s), except as provided in Section 9.7.
Unless and until definitive, fully registered Trust Preferred Securities
Certificates (the "Definitive Trust Preferred Securities Certificates") have
been issued to the Trust Preferred Securities Beneficial Owners pursuant to
Section 9.7:

                  (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 Depositary for all purposes of this Declaration (including the payment
of Distributions on the Global Certificate(s) and

                                     - 32 -

<PAGE>

receiving approvals, votes or consents hereunder) as the Holder of the Trust
Preferred Securities and the sole holder of the Global Certificate(s) and shall
have no notice obligation to the Trust Preferred Securities 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 Trust Preferred Securities
Beneficial Owners shall be exercised only through the Depositary and shall be
limited to those established by law and agreements between such Trust Preferred
Securities Beneficial Owners and the Depositary and/or its Clearing Agency
Participants. The Depositary will make book-entry transfers among its Clearing
Agency Participants and receive and transmit payments of Distributions on the
Global Certificates to such Clearing Agency Participants.

                  At such time as all beneficial interests in a Global
Certificate have either been exchanged for Definitive Trust Preferred Securities
Certificates to the extent permitted by this Declaration or redeemed,
repurchased or canceled in accordance with the terms of this Declaration, such
Global Certificate shall be returned to the Depositary for cancellation or
retained and canceled by the Property Trustee. At any time prior to such
cancellation, if any beneficial interest in a Global Certificate is exchanged
for Definitive Trust Preferred Securities Certificates, or if Definitive Trust
Preferred Securities Certificates are exchanged for a beneficial interest in a
Global Certificate, Trust Preferred Securities represented by such Global
Certificate shall be reduced or increased and an adjustment shall be made on the
books and records of the Property Trustee (if it is then the securities
custodian for such Global Certificate) with respect to such Global Certificate,
by the Property Trustee or the securities custodian, to reflect such reduction
or increase.

         Section 9.5 Notices to Depositary. Whenever a notice or other
communication to the Holders of the Trust Preferred Securities is required under
this Declaration, unless and until Definitive Trust Preferred Securities
Certificates shall have been issued to the Trust Preferred Securities Beneficial
Owners pursuant to Section 9.7, the Administrative Trustees shall give all such
notices and communications specified herein to be given to the Trust Preferred
Securities Beneficial Owners to the Depositary, and shall have no notice
obligations to the Trust Preferred Securities Beneficial Owners.

         Section 9.6 Appointment of Successor Depositary. If any Depositary
elects to discontinue its services as securities depositary with respect to the
Trust Preferred Securities, the Administrative Trustees may, in their sole
discretion, appoint a Clearing Agency to act as successor Depositary with
respect to the Trust Preferred Securities.

         Section 9.7 Definitive Trust Preferred Securities Certificates. If:

                  (a)      a Depositary elects to discontinue its services as
securities depositary with respect to the Trust Preferred Securities and a
Clearing Agency is not appointed within 90 days after such discontinuance to act
as successor Depositary pursuant to Section 9.6;

                  (b)      a Depositary ceases to be a Clearing Agency under the
Exchange Act; or

                  (c)      the Administrative Trustees elect after consultation
with the Sponsor to terminate the book-entry system through the Depositary with
respect to the Trust Preferred Securities,

then:

                                     - 33 -

<PAGE>

                           (i)      Definitive Trust Preferred Securities
         Certificates shall be prepared by the Administrative Trustees on behalf
         of the Trust with respect to such Trust Preferred Securities; and

                           (ii)     upon surrender of the Global Certificate(s)
         by the Depositary, accompanied by registration instructions, the
         Administrative Trustees shall cause Definitive Trust Preferred
         Securities Certificates to be delivered to Trust Preferred Securities
         Beneficial Owners in accordance with the instructions of the
         Depositary. Neither the Trustees nor the Trust shall be liable for any
         delay in delivery of such instructions and each of them may
         conclusively rely on and shall be protected in relying on, said
         instructions of the Depositary. The Definitive Trust Preferred
         Securities Certificates 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, and
         may have such letters, numbers, notations or other marks of
         identification or designation and such legends or endorsements required
         by law, agreements to which the Trust is subject, if any, any rule or
         regulation of any securities exchange or automated quotation system on
         which the Trust Preferred Securities may be listed or traded, 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.

         Section 9.8 Mutilated, Destroyed, Lost or Stolen Certificates. If:

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

                  (b)      there shall be delivered to the Administrative
Trustees and the Trust such security or indemnity as may be required by them to
keep each of them harmless, then, in the absence of notice that such Certificate
shall have been acquired by a bona fide purchaser, any Administrative Trustee on
behalf of the Trust shall execute and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
denomination. In connection with the issuance of any new Certificate under this
Section 9.8, the Administrative Trustees may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith. Any duplicate Certificate issued pursuant to this Section
9.8 shall constitute conclusive evidence of an ownership interest in the
relevant Securities, as if originally issued, whether or not the lost, stolen or
destroyed Certificate shall be found at any time.

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

         Section 10.1 Liability.

                  (a)      Except as expressly set forth in this Declaration,
the Trust Preferred Securities Guarantee, the Trust Common Securities Guarantee
and the Terms, the Sponsor shall not be:

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

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

                                     - 34 -

<PAGE>

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

                  (c)      Pursuant to sections 3803(a) of the Statutory Trust
Act, the Holders of the Trust Preferred Securities shall be entitled to the same
limitation of personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of the State
of Delaware.

         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, damage, expense 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, damage, expense or claim incurred by reason of such Indemnified
Person's gross negligence (or, in the case of the Property Trustee, negligence)
or willful misconduct with respect to such acts or omissions.

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

         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 Person, 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,

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

                                     - 35 -

<PAGE>

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 or by applicable law.

         Section 10.4 Indemnification.

                  (a)      (i) The Sponsor shall indemnify, to the full extent
         permitted by law, any Sponsor 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 Sponsor
         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 he 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 Sponsor Indemnified
         Person did not act in good faith and in a manner that 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 Sponsor shall indemnify, to the full
         extent permitted by law, any Sponsor 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 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 Sponsor 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
         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 Sponsor 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
         that such Court of Chancery or such other court shall deem proper.

                           (iii)    To the extent that a Sponsor 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

                                     - 36 -

<PAGE>

         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
         and expenses) 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 Sponsor only as authorized in the specific case upon a
         determination that indemnification of the Sponsor 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 Holders of the Trust Common Securities.

                           (v)      Expenses (including attorneys' fees and
         expenses) incurred by a Sponsor 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 Sponsor in advance of the final
         disposition of such action, suit or proceeding upon receipt of an
         undertaking by or on behalf of such Sponsor Indemnified Person to repay
         such amount if it shall ultimately be determined that he is not
         entitled to be indemnified by the Sponsor as authorized in this Section
         10.4(a). Notwithstanding the foregoing, no advance shall be made by the
         Sponsor if a determination is reasonably and promptly made (A) by the
         Administrative Trustees by a majority vote of a quorum of disinterested
         Administrative Trustees, (B) 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 (C) by the Holders of the Trust Common Securities, that, based upon
         the facts known to the Administrative Trustees, counsel or the Holders
         of the Trust Common Securities at the time such determination is made,
         such Sponsor 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 Sponsor 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 Holder of Trust Common Securities reasonably determine that
         such Person deliberately breached his duty to the Trust or the Holders
         of Trust Common Securities or Trust Preferred Securities.

                           (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 the Person seeking indemnification and advancement of expenses
         may be entitled under any agreement, vote of shareholders or
         disinterested directors of the Sponsor or Holders of Trust Preferred
         Securities 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 Sponsor and each Sponsor 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 Sponsor or the Trust may purchase and
         maintain insurance on behalf of any Person who is or was a Sponsor
         Indemnified Person against any liability asserted against such Person
         and incurred by such Person in any such capacity, or arising out of
         such Person's status as such, whether or not the Sponsor would have the
         power to indemnify such Person against such liability under the
         provisions of this Section 10.4(a).

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<PAGE>

                           (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 such Person 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 Sponsor Indemnified Person and
         shall inure to the benefit of the heirs, executors and administrators
         of such a Person.

                  (b)      The Sponsor agrees to indemnify each of the (i)
Property Trustee, (ii) the Delaware Trustee, (iii) any Affiliate of the Property
Trustee or the Delaware Trustee, and (iv) any officer, director, shareholder,
member, partner, employee, representative, custodian, nominee or agent of the
Property Trustee or the Delaware Trustee (each of the Persons in (i) through
(iv), including the Property Trustee and the Delaware Trustee in their
respective individual and trustee capacities, being referred to as a "Fiduciary
Indemnified Person") for, and to hold each Fiduciary Indemnified Person harmless
against, any and all loss, liability, claim, action, suit, cost or expense of
any kind and nature whatsoever, including taxes (other than taxes based on the
income of such Fiduciary Indemnified Person), incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or
administration or the trust or trusts hereunder, including the costs and
expenses (including reasonable legal fees and expenses) of defending itself
against or investigating any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder. 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 shall survive the
satisfaction and discharge of this Declaration.

         Section 10.5 Outside Businesses. Any Covered Person, the Sponsor, the
Delaware Trustee and the Property Trustee may, subject to Section 5.3(c), engage
in or possess an interest in other business ventures of any nature or
description, independently or with others, similar or dissimilar to the business
of the Trust, and the Trust and the Holders of Securities shall have no rights
by virtue of this Declaration in and to such independent ventures or the income
or profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or
improper. 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.

         Section 10.6 Compensation; Fees. The Sponsor agrees to pay to each of
the Property Trustee and the Delaware Trustee such compensation, as may
separately be agreed to by the Sponsor in writing, for all services rendered by
such Trustee hereunder (which compensation shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) including
compensation for services rendered up to the time of any removal or resignation
of such Trustee.

                                     - 38 -

<PAGE>

         To the fullest extent permitted by law, the parties intend that the
provisions of Section 3561 of Title 12 of the Delaware Code shall not apply to
the Trust and that the compensation payable hereby shall not be subject to
review by any court of competent jurisdiction, whether pursuant to Section 3560
of Title 12 of the Delaware Code or otherwise. The provisions of this Section
10.6 shall survive the termination of this Declaration, the dissolution of the
Trust and the satisfaction and discharge of this Declaration and the removal or
resignation of any Trustee.

                                   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 on behalf of the Trust shall keep, or cause to be kept,
full books of account, records and supporting documents, which shall reflect in
reasonable detail, each transaction of the Trust. The books of account shall be
maintained on the accrual method of accounting, in accordance with generally
accepted accounting principles, consistently applied. The Trust shall use the
accrual method of accounting for U.S. federal income tax purposes. 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 by a firm of independent certified public
accountants selected by the Administrative Trustees. The books and records of
the Trust, together with a copy of this Declaration and any amendments hereto,
shall at all times be maintained at the principal office of the Trust and shall
be available during normal business hours, upon reasonable prior notice, for
examination by any Holder or its duly authorized representative for any purpose
reasonably related to its interest in the Trust.

                  (b)      The Administrative Trustees on behalf of the Trust
shall cause to be prepared and delivered to each of the Holders of Securities,
within 90 days after the end of each Fiscal Year of the Trust, annual financial
statements of the Trust, including a balance sheet of the Trust as of the end of
such Fiscal Year, and the related statements of income or loss.

                  (c)      The Administrative Trustees on behalf of the Trust
shall cause to be duly prepared and delivered to each of the Holders of
Securities, any annual U.S. 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
statements within 30 days after the end of each Fiscal Year of the Trust.

                  (d)      The Administrative Trustees on behalf of the Trust
shall cause to be duly prepared and filed with the appropriate taxing authority,
an annual U.S. federal income tax return, on a Form 1041 or such other form
required by U.S. 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 shall maintain one or more bank
accounts in the name and for the sole benefit of the Trust; provided, however,
that all payments of funds in respect of the Debentures held by the Property
Trustee shall be made directly to the Property Trustee Account and no other
funds of the Trust shall be deposited in the Property Trustee Account. The sole
signatories for such

                                     - 39 -

<PAGE>

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 on
behalf of the Trust shall comply with all withholding requirements under U.S.
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 Trustee on behalf of the Trust 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 claimed overwithholding, Holders shall be limited to an
action against the applicable jurisdiction. If the amount required to be
withheld was not withheld from actual Distributions made, the Trust may reduce
subsequent Distributions by the amount of such withholding.

                                   ARTICLE XII
                             AMENDMENTS AND MEETINGS

         Section 12.1 Amendments.

                  (a)      Except as otherwise provided in this Declaration or
by any applicable Terms, this Declaration may only be amended by a written
instrument approved and executed by:

                           (i)      a Quorum of the Administrative Trustees;

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

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

                           (iv)     if the amendment affects the rights, powers,
         duties, obligations or immunities of the Sponsor, the Sponsor.

                  (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) and that all conditions precedent to the
         execution and delivery of such amendment have been satisfied; and if
         the proposed amendment affects the rights, powers, duties, obligations
         or immunities of the Property Trustee, the Property Trustee shall have
         first received an opinion of counsel reasonably acceptable to the
         Property Trustee (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) and that all conditions precedent to
         the execution and delivery of such amendment have been satisfied; and

                                     - 40 -

<PAGE>

                           (ii)     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 U.S. federal income taxation as a
         grantor trust;

                                    (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 that is 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 of Securities may be
effected only with such additional requirements as may be set forth in the Terms
of such Securities.

                  (d)      Section 10.1(c) and this Section 12.1 shall not be
amended without the consent of all of the Holders of the Securities.

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

                  (f)      The rights of the holders of the Trust 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 Trust Common Securities.

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

                           (i)      cure any ambiguity;

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

                           (iii)    make any other provisions with respect to
         matters or questions arising under this Declaration that shall not be
         inconsistent with the provisions of this Declaration; provided, that
         such action pursuant to this clause (iii) shall not adversely affect in
         any material respect the interests of the Holders of the Securities (an
         amendment to specify procedures to deal with fractional interests in
         Securities in connection with any redemption of fewer than all the
         outstanding Securities will not be deemed to have any such material
         adverse effect);

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

                           (v)      conform to any change in Rule 3a-5 or
         written change in interpretation or application of Rule 3a-5 by any
         legislative body, court, government agency or regulatory authority
         which amendment does not have a material adverse effect on the rights,
         preferences or privileges of the Holders; and

                           (vi)     modify, eliminate or add to any provisions
         of this Declaration to such extent as shall be necessary to ensure that
         the Trust will be classified for U.S. federal income tax purposes as a
         grantor trust at all times that any Securities are outstanding or to
         ensure that the

                                     - 41 -

<PAGE>

         Trust will not be required to register as an Investment Company under
         the Investment Company Act;

provided, that in the case of clauses (i) through (iii), such actions 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 of Securities; 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) 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 or
the rules of any securities exchange or automated quotation system on which the
Trust Preferred Securities may be listed or traded. 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 of such class of Securities. Such
direction shall be given by delivering to the Administrative Trustees one or
more written requests stating that the signing Holders of Securities wish to
call a meeting and indicating the general or specific purpose for which the
meeting is to be called. Any Holders of Securities calling a meeting shall
specify in writing the Certificates held by the Holders of Securities exercising
the right to call a meeting and only those Securities so 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,
the following provisions shall apply to meetings of Holders of Securities:

                           (i)      Notice of any such meeting shall be given to
         all the Holders of Securities 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 of Securities is
         permitted or required under this Declaration or the rules of any
         securities exchange or automated quotation system on which the Trust
         Preferred Securities may be listed or traded, such vote, consent or
         approval may be given at a meeting of the Holders of Securities. Any
         action that may be taken at a meeting of the Holders of Securities may
         be taken without a meeting if a consent in writing setting forth the
         action so taken is signed by the Holders of Securities owning at least
         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 of Securities having a right to vote thereon were present and
         voting. Prompt notice of the taking of action without a meeting shall
         be given to the Holders of Securities entitled to vote who have not
         consented in writing. The Administrative Trustees may specify that any
         written ballot submitted to the Security Holders 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 of a Security may authorize any
         Person to act for it by proxy on all matters in which a Holder of
         Securities is entitled to participate, including waiving notice of any
         meeting, or voting or participating at a meeting. No proxy shall be
         valid after the expiration of 11 months from the date thereof unless
         otherwise provided in the proxy. Every proxy shall be revocable at the
         pleasure of the Holder of Securities executing it. Except as otherwise
         provided herein, all matters relating to the giving, voting or validity
         of proxies shall be governed by the General Corporation Law of the
         State of Delaware relating to proxies, and judicial interpretations
         thereunder, as if the Trust were a Delaware corporation and the Holders
         of the Securities were stockholders of a Delaware corporation.

                                     - 42 -

<PAGE>

                           (iii)    Each meeting of the Holders of the
         Securities shall be conducted by the Administrative Trustees or by such
         other Person that the Administrative Trustees may designate.

                           (iv)     Unless the Statutory Trust Act, this
         Declaration, the Terms, the Trust Indenture Act or the listing rules of
         any securities exchange or automated quotation system on which the
         Trust Preferred Securities may be listed or traded provide otherwise,
         the Administrative Trustees, in their sole discretion, shall establish
         all other provisions relating to meetings of Holders of Securities,
         including notice of the time, place or purpose of any meeting at which
         any matter is to be voted on by any Holders of Securities, waiver of
         any such notice, action by consent without a meeting, the establishment
         of a record date, quorum requirements, voting in person or by proxy or
         any other matter with respect to the exercise of any such right to
         vote.

                                  ARTICLE XIII
            REPRESENTATIONS OF PROPERTY TRUSTEE AND DELAWARE TRUSTEE

         Section 13.1 Representations and Warranties of Property Trustee. The
Property Trustee that acts as initial Property Trustee represents and warrants
to the Trust and to the Sponsor at the date of this Declaration and at the time
of each Closing, 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 banking corporation with
trust powers, duly organized, validly existing and in good standing under the
laws of Delaware, with trust power and authority to execute and deliver, and to
carry out and perform its obligations under the terms of, this Declaration.

                  (b)      The 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 certificate of incorporation or by-laws of the Property Trustee.

                  (d)      At the Closing Date, the Property Trustee will be the
record holder of the Debentures and the Property Trustee has not knowingly
created any liens or encumbrances on such Debentures.

                  (e)      The Property Trustee satisfies the qualifications set
forth in Section 5.3.

                  (f)      No consent, approval or authorization of, or
registration with or notice to, any 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 at the time of each
Closing, and each Successor Delaware Trustee represents and

                                     - 43 -

<PAGE>

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 a banking corporation with
trust powers, duly organized, validly existing and in good standing under the
laws of Delaware, with trust power and authority to execute and deliver, and to
carry out and perform its obligations under the terms of, this Declaration.

                  (b)      The 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)      The execution, delivery and performance of this
Declaration by the Delaware Trustee does not conflict with or constitute a
breach of the certificate of incorporation or by-laws of the Delaware Trustee.

                  (d)      No consent, approval or authorization of, or
registration with or notice to, any state or federal banking authority is
required to be made, obtained or given, as the case may be, by the Delaware
Trustee for the execution, delivery or performance by the Delaware Trustee, of
this Declaration.

                  (e)      The Delaware Trustee is an entity that has its
principal place of business in the State of Delaware.

                  (f)      The Delaware Trustee has been authorized to perform
its obligations under the Certificate of Trust of the Trust and this
Declaration.

                                   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, sent by facsimile or mailed by first class mail, 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 Holders of the Securities):

                           c/o WestCoast Hospitality Corporation
                           201 W. North River Drive
                           Spokane, Washington 99201
                           Fax:  509-325-7324

                                     - 44 -

<PAGE>

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

                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, Delaware 19890
                           Attention:  Corporate Trust Administration
                           Fax:  302-636-4140

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

                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, Delaware 19890
                           Attention: Corporate Trust Administration
                           Fax:  302-636-4140

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

                           WestCoast Hospitality Corporation
                           201 W. North River Drive
                           Spokane, Washington 99201
                           Attention: Chief Financial Officer
                           Fax:  509-325-7324

                  (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 U.S. federal income tax purposes
as a grantor trust. The provisions of this Declaration shall be interpreted to
further this intention of the parties.

         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.

                                     - 45 -

<PAGE>

         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.

         Section 14.8 CUSIP Numbers. The Trust in issuing the Securities may use
"CUSIP" numbers (if then generally in use), and, if so used, the Trustees shall
use "CUSIP" numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Certificates or as
contained in any notice of redemption, and that reliance may be placed only on
the other identification numbers printed on the Certificate, and no redemption
shall be affected by any defect in or omission of such numbers. The
Administrative Trustees shall promptly notify the Property Trustee of any change
in the "CUSIP" numbers for the Securities.

                            [SIGNATURE PAGE FOLLOWS]

                                     - 46 -

<PAGE>

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

                                    PETER P. HAUSBACK,
                                    as Administrative Trustee

                                    /s/ Peter P. Hausback
                                    --------------------------------------------

                                    THOMAS L. McKEIRNAN,
                                    as Administrative Trustee

                                    /s/ Thomas L. McKeirnan
                                    --------------------------------------------

                                    WILMINGTON TRUST COMPANY,
                                    as Delaware Trustee

                                    By:   /s/ W. Chris Sponenberg
                                          --------------------------------------
                                          Authorized Signatory

                                    WILMINGTON TRUST COMPANY,
                                    as Property Trustee

                                    By:   /s/ W. Chris Sponenberg
                                          --------------------------------------
                                          Authorized Signatory

                                    WESTCOAST HOSPITALITY CORPORATION
                                    as Sponsor

                                    By:  /s/ Peter P. Hausback
                                         ---------------------------------------
                                         Peter P. Hausback
                                         Vice President, Chief Financial Officer

                                     - 47 -

<PAGE>

                                     ANNEX I

                                    TERMS OF
                         9.5% TRUST PREFERRED SECURITIES
                                       AND
                          9.5% TRUST COMMON SECURITIES

         Pursuant to Section 7.1 of the Amended and Restated Declaration of
Trust, dated as of February 24, 2004 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Trust Preferred Securities and the Trust
Common 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 (as defined below)):

         1.       Designation and Number.

                  (a)      Up to 1,840,000 Trust Preferred Securities of the
Trust with an aggregate liquidation amount with respect to the assets of the
Trust of up to $46,000,000 and a liquidation amount with respect to the assets
of the Trust of $25 per Trust Preferred Security, are hereby designated for the
purposes of identification only as "9.5% Trust Preferred Securities (Liquidation
Amount of $25 per Trust Preferred Security)" (the "Trust Preferred Securities").
The Trust Preferred Securities Certificates evidencing the Trust 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 any
securities exchange or automated quotation system on which the Trust Preferred
Securities may be listed or traded.

                  (b)      Up to 56,908 Trust Common Securities of the Trust
with an aggregate liquidation amount with respect to the assets of the Trust of
up to $1,422,700 and a liquidation amount with respect to the assets of the
Trust of $25 per Trust Common Security, are hereby designated for the purposes
of identification only as "9.5% Trust Common Securities (Liquidation Amount of
$25 per Trust Common Security)" (the "Trust Common Securities"). The Trust
Common Securities Certificates evidencing the Trust 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.

                  (c)      The Trust Preferred Securities and the Trust Common
Securities represent undivided beneficial interests in the assets of the Trust.

                  (d)      In connection with the purchase of the Securities,
the Debenture Issuer will deposit in the Trust, and the Trust will purchase,
respectively, as trust assets, Debentures of the Debenture Issuer having an
aggregate principal amount of up to $47,422,700, bearing interest at an annual
rate equal to the annual Distribution rate on the Trust Preferred Securities and
Trust Common Securities, and having payment and redemption provisions which
correspond to the payment and redemption provisions of the Trust Preferred
Securities and Trust Common Securities.

         2.       Distributions.

                  (a)      Distributions payable on each Security will be fixed
at a rate per annum of 9.5% (the "Coupon Rate") of the stated liquidation amount
of $25 per Security, such rate being the rate of interest payable on the
Debentures to be held by the Property Trustee. Distributions in arrears will
bear interest thereon compounded quarterly at the Coupon Rate (to the extent
permitted by applicable law).

<PAGE>

The term "Distributions" as used herein includes any such interest, including
any Additional Interest and Compounded Interest payable, unless otherwise
stated. A Distribution is payable only to the extent that payments are made in
respect of the Debentures held by the Property Trustee and to the extent the
Property Trustee has funds available therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year of twelve 30-day months. For any period
shorter than a full quarterly Distribution period for which Distributions are
computed, Distributions will be computed on the basis of the actual number of
days elapsed per 30-day month.

                  (b)      Distributions on the Securities will be cumulative,
will accrue from February 24, 2004 and will, except as otherwise described
below, be payable quarterly and in arrears, on the following dates, which dates
correspond to the interest payment dates on the Debentures: March 31, June 30,
September 30 and December 31 of each year, commencing on March 31, 2004, when,
as and if available for payment by the Property Trustee. So long as no Indenture
Event of Default, and no event that, after notice or lapse of time or both,
would become an Indenture Event of Default, shall have occurred and be
continuing, the Debenture Issuer shall have the right at any time during the
term of the Debentures to defer the payment of interest on the Debentures for
one or more periods selected by the Debenture Issuer not exceeding 20
consecutive quarters for any such period (each, subject to extension and
shortening as provided in the following two sentences, a "Deferral Period");
except that each Deferral Period shall end on the last day of a calendar quarter
and no Deferral Period may extend beyond the maturity of the Debentures. At any
time prior to the end of a Deferral Period, the Debenture Issuer may, so long as
no Indenture Event of Default, and no event that, after notice or lapse of time
or both, would become an Indenture Event of Default, shall have occurred and be
continuing, extend the Deferral Period and further defer the payment of interest
on the Debentures, provided that the Deferral Period as so extended shall not
exceed 20 consecutive quarters or extend beyond the maturity of the Debentures.
At any time prior to the end of a calendar quarter ending prior to the end of a
Deferral Period, the Debenture Issuer may shorten the Deferral Period so that it
will end on the last day of such calendar quarter. The Debenture Issuer is
required to give notice to the Property Trustee each time it selects a Deferral
Period or extends or shortens a Deferral Period in progress, and promptly
following receipt of such notice the Property Trustee will cause notice thereof
to be given to each Holder of Trust Preferred Securities. During any such
Deferral Period, Distributions will be deferred. Despite such deferral,
quarterly Distributions will continue to accrue 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 Deferral Period. Accrued Distributions (and all
accrued interest thereon) will be payable on the last day of the Deferral
Period. Upon the termination of any Deferral Period and the payment of all
amounts then due, the Debenture Issuer may commence a new Deferral Period,
subject to the above requirements.

                  During any Deferral Period, the Debenture Issuer shall not,
and shall cause each of its Subsidiaries not to,

                           (i)      declare or pay dividends on, or make a
distribution with respect to, or redeem or purchase or acquire, or make a
liquidation payment with respect to, any of its capital stock or other equity
securities other than (A) any purchase or acquisition of Common Stock (or Common
Stock equivalents) in connection with the satisfaction by the Debenture Issuer
or any of its Subsidiaries of its obligations under any employee benefit plan or
the satisfaction by the Debenture Issuer or the Subsidiary of its obligations
pursuant to any contract or security requiring the Debenture Issuer or any of
its Subsidiaries to purchase Common Stock (or Common Stock equivalents), (B) any
purchase of Common Stock (or Common Stock equivalents) from an officer or
employee (or a Person performing similar functions) of the Debenture Issuer or
any of its Subsidiaries upon termination of employment or retirement not
pursuant to any obligation under any contract or security requiring the
Debenture Issuer or

                                       I-2

<PAGE>
any of its Subsidiaries to purchase such Common Stock (or Common Stock
equivalents), (C) as a result of a reclassification of the capital stock or
other equity securities of the Debenture Issuer or any of its Subsidiaries or
the exchange or conversion of one class or series of capital stock or other
equity securities for another class or series of capital stock or other equity
securities of the Debenture Issuer or any of its Subsidiaries, (D) any dividend
or distribution of Common Stock on Common Stock, (E) any purchase of fractional
interests in capital stock or other equity securities of the Debenture Issuer or
any of its Subsidiaries pursuant to the conversion or exchange provisions of
such capital stock or other equity security being converted or exchanged, (F)
any declaration or payment of a dividend in connection with the implementation
of a Rights Plan or the redemption or repurchase of any rights distributed
pursuant to a Rights Plan, (G) any dividend or distribution by a Subsidiary of
the Debenture Issuer to the Debenture Issuer or another Subsidiary of the
Debenture Issuer, (H) any distribution by WestCoast Hospitality Limited
Partnership ("WHLP") to any Person that is a partner in WHLP for federal income
tax purposes so long as (x) at the time of the distribution, the Debenture
Issuer has at least an 80% interest in the income, gain, loss and deductions of
WHLP, and (y) such distribution is required by the Amended and Restated
Agreement of Limited Partnership of WHLP, as in effect on the date of original
issuance of the Debentures, and (I) any distribution by any other Subsidiary of
the Debenture Issuer that is not wholly owned by the Debenture Issuer, so long
as none of the holders of equity interests in such Subsidiary have any right to
convert such equity securities into, or exchange such equity securities for,
Common Stock of the Debenture Issuer;

                           (ii)     make any payment of principal of, or
premium, if any, or interest on, or repay, repurchase or redeem, any debt
securities issued by the Debenture Issuer that rank pari passu with or junior to
the Debentures; or

                           (iii)    make any guarantee payments with respect to
any guarantee (other than the Trust Preferred Securities Guarantee) by the
Debenture Issuer of any debt securities of any Subsidiary of the Debenture
Issuer, if such guarantee ranks pari passu with or junior to the Debentures.

                  (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
relevant record dates. While the Trust Preferred Securities remain in
book-entry-only form, the relevant record dates shall be one Business Day prior
to the relevant payment dates, which payment 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 Trust
Preferred Securities will be made as described under the heading "Description of
Securities - Material Terms of the Trust Preferred Securities - Book-Entry-Only
Issuance - DTC" in the Prospectus dated February 12, 2004 (the "Prospectus"), of
the Trust including in the Registration Statement on Form S-1 of the Sponsor and
the Trust. The relevant record dates for the Trust Common Securities shall be
the same record dates as for the Trust Preferred Securities. If the Trust
Preferred Securities shall not continue to remain in book-entry-only form, the
relevant record dates for the Trust Preferred Securities shall conform to the
rules of any securities exchange or automated quotation system on which the
Trust Preferred Securities are then listed or quoted and, if none, shall be
selected by the Administrative Trustees, which dates shall be at least one but
not more than 60 days before the relevant payment dates, which payment dates
correspond to the interest payment dates on the Debentures. Distributions
payable on any Securities that are not punctually paid on any Distribution
payment date, as a result of the Debenture Issuer having failed to make a
payment under the Debentures, will cease to be payable to the Person in whose
name such Securities are registered on the relevant record date, and such
defaulted Distribution will instead be payable to the Person in whose name such
Securities are registered on the special record date or other specified date
determined in accordance with the Indenture. Distributions on the Securities
shall be paid on a Pro Rata basis to Holders thereof entitled thereto. 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

                                       I-3

<PAGE>

without any distribution or other payment in respect of any such delay) except
that, if such Business Day is in the next succeeding calendar year, such payment
shall be made on the immediately preceding Business Day, in each case with the
same force and effect as if made on the date on which the Distributions would be
payable without regard to this sentence.

                  (d)      If at any time while the Property Trustee is the
Holder of any Debentures, the Trust or the Property Trustee is required to pay
any taxes, duties, assessments or governmental charges of whatever nature (other
than withholding taxes) imposed by the United States, or any other taxing
authority, then, in any such case, the Debenture Issuer will pay as additional
interest on the Debentures held by the Property Trustee, such amounts as shall
be required so that the net amounts received and retained by the Trust and the
Property Trustee after paying any such taxes, duties, assessments or other
governmental charges will be at least the amounts the Trust and the Property
Trustee would have received had no such taxes, duties, assessments or other
governmental charges been imposed.

                  (e)      In the event that there is any money or other
property held by or for the Trust that is not accounted for hereunder, such
property shall be distributed Pro Rata among the Holders of the Securities.

         3.       Liquidation Distribution Upon Dissolution. In the event of any
voluntary or involuntary dissolution, winding-up or termination of the Trust
(each a "Liquidation") the then Holders of the Securities on the date of the
Liquidation will be entitled to receive Pro Rata out of the assets of the Trust
available for distribution to Holders of Securities after satisfaction of
liabilities of creditors, distributions in an amount equal to the aggregate of
the stated liquidation amount of $25 per Security plus accrued and unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"), unless, in connection with a Liquidation related to a Special
Event, Debentures in an aggregate principal amount equal to the aggregate stated
liquidation amount of such Securities, with an interest rate equal to the Coupon
Rate of, and bearing accrued and unpaid interest in an amount equal to the
accrued and unpaid Distributions on, such Securities, shall be distributed on a
Pro Rata basis to the Holders of the Securities.

         If, upon any such Liquidation (other than a Liquidation related to a
Special Event), the Liquidation Distribution can be paid only in part because
the Trust has insufficient assets available to pay in full the aggregate
Liquidation Distribution, then the amounts payable directly by the Trust on the
Securities shall be paid on a Pro Rata basis in accordance with paragraph 9
below.

         4.       Redemption and Distribution.

                  (a)      Redemption of the Securities will occur
simultaneously with any redemption of the Debentures. The Debentures will mature
on February 24, 2044, and are redeemable earlier as set forth in this paragraph
4. Upon the redemption of the Debentures in whole or in part, whether at
maturity or upon earlier redemption, the proceeds from such redemption shall be
simultaneously applied to redeem, in cash, Securities having an aggregate
liquidation amount equal to the aggregate principal amount of the Debentures so
redeemed at a redemption price equal to the redemption price of such redeemed
Debentures (as specified in the Indenture and the Prospectus), together with
accrued and unpaid Distributions thereon to, but excluding, the date of
redemption (the "Redemption Price"). If fewer than all of the outstanding
Securities are to be so redeemed, the Securities will be redeemed Pro Rata and
the Trust Preferred Securities to be redeemed will be as described in paragraph
4(g)(ii) below.

                  (b)      The Debenture Issuer shall have the right (subject to
the conditions in the Indenture) to elect to redeem the Debentures, (i) in whole
or in part, at any time on or after February 24, 2009, or (ii) at any time, in
whole but not in part, upon the occurrence and continuation of a Redemption

                                       I-4

<PAGE>

Tax Event (as defined below), in either case at a redemption price equal to 100%
of the principal amount thereof, plus accrued and unpaid interest thereon
(including Additional Interest and Compounded Interest, if any) to, but
excluding, the date of redemption.

                  (c)      If, at any time prior to February 24, 2007, the
Debenture Issuer consummates an offering of its common stock (other than an
offering of its common stock issuable upon conversion of any equity or debt
securities issued by the Debenture Issuer or any of its Subsidiaries) that
results in gross proceeds to the Debenture Issuer of at least $50,000,000, then,
within 60 days following the consummation of the first such offering, the
Debenture Issuer must redeem in cash Debentures having a principal amount equal
to 35% of the aggregate principal amount of the then outstanding Debentures at a
redemption price equal to 105% of the principal amount of the Debentures to be
redeemed plus accrued and unpaid Distributions thereon to, but excluding, the
date of redemption.

                  (d)      If, at any time, a Tax Event or an Investment Company
Event (each as defined below and each a "Special Event") shall occur and be
continuing, the Administrative Trustees shall, unless the Debentures are
redeemed in the limited circumstances involving a Redemption Tax Event, dissolve
the Trust and, after satisfaction of creditors of the Trust, if any, cause
Debentures held by the Property Trustee, having an aggregate principal amount
equal to the aggregate stated liquidation amount of, an interest rate identical
to the Coupon Rate of, and accrued and unpaid interest equal to accrued and
unpaid Distributions on, the Securities, to be distributed on a Pro Rata basis,
within 90 days following the occurrence of such Special Event (the "90 Day
Period"), to the Holders of the Securities in liquidation of such Holders'
interest in the Trust; provided, however, that in the case of a Tax Event, such
dissolution and distribution shall be conditioned on the Administrative
Trustees' receipt of an opinion of independent tax counsel experienced in such
matters (a "No Recognition Opinion"), which opinion may rely on published
revenue rulings of the Internal Revenue Service, to the effect that the Holders
of the Trust Preferred Securities will not recognize any income, gain or loss
for U.S. federal income tax purposes as a result of such dissolution and
distribution of Debentures, and provided, further, that if at the time there is
available to the Trust the opportunity to eliminate, within the 90 Day Period,
the Special Event by taking some ministerial action, such as filing a form or
making an election, or pursuing some other similar reasonable measure which in
the reasonable judgment of the Debenture Issuer, has and will cause no adverse
effect on the Trust, the Debenture Issuer or the Holders of the Securities and
will involve no material cost ("Ministerial Action"), the Trust will pursue such
Ministerial Action in lieu of dissolution.

         "Tax Event" means that the Administrative Trustees shall have received
an opinion of independent tax counsel experienced in such matters (a
"Dissolution Tax Opinion") to the effect that, as a result of (a) any amendment
to, or change (including any announced prospective change) in, the laws or any
regulations thereunder of the United States or any political subdivision or
taxing authority thereof or therein, (b) any amendment to, or change in, an
interpretation or application of any such laws or regulations by any legislative
body, court, governmental agency or regulatory authority (including the
enactment of any legislation and the publication of any judicial decision or
regulatory determination), (c) any interpretation or pronouncement that provides
for a position with respect to such laws or regulations that differs from the
theretofore generally accepted position, or (d) any action taken by any
governmental agency or regulatory authority, which amendment or change is
enacted, promulgated, issued or announced or which interpretation or
pronouncement is issued or announced or which action is taken, in each case on
or after the date of original issuance of the Debentures (collectively, a
"Change in Tax Law"), there is more than an insubstantial risk that (i) the
Trust is, or will be within 90 days of the date thereof, subject to U.S. federal
income tax with respect to interest accrued or received on the Debentures, (ii)
the Trust is, or will be within 90 days of the date thereof, subject to more
than a de minimis amount of other taxes, duties or other governmental charges,
or (iii) interest payable by the Debenture Issuer to the Trust on the Debentures
is not, or within 90 days of the date thereof will not be, deductible by the
Debenture Issuer for U.S. federal income tax purposes. Notwithstanding anything
in the previous sentence

                                       I-5

<PAGE>

to the contrary, a Tax Event shall not include any Change in Tax Law that
requires the Debenture Issuer for U.S. federal income tax purposes to defer
taking a deduction for any original issue discount that accrues with respect to
the Debentures until the interest payment related to such original issue
discount is paid by the Debenture Issuer in money.

         "Investment Company Event" means that the Administrative Trustees shall
have received an opinion of independent counsel experienced in practice under
the Investment Company Act that, as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws or any regulations
thereunder of the United States or any political subdivision thereof or therein,
(b) any amendment to, or change in, an interpretation or application of any such
laws or regulations by any legislative body, court, governmental agency or
regulatory authority (including the enactment of any legislation and the
publication of any judicial decision or regulatory determination), (c) any
interpretation or pronouncement that provides for a position with respect to
such laws or regulations that differs from the theretofore generally accepted
position or (d) any action taken by any governmental agency or regulatory
authority, which amendment or change is enacted, promulgated, issued or
announced or which interpretation or pronouncement is issued or announced or
which action is taken, in each case on or after the date of original issuance of
the Debentures (collectively, "Change in 1940 Act Law"), there is more than an
insubstantial risk that the Trust is or will be considered an Investment Company
that is required to be registered under the Investment Company Act.

         "Redemption Tax Event" means a Tax Event in connection with which (a)
the Administrative Trustees shall have received an opinion (a "Redemption Tax
Opinion") of independent tax counsel experienced in such matters that, as a
result of the Tax Event, there is more than an insubstantial risk that the
Debenture Issuer would be precluded from deducting the interest on the
Debentures for U.S. federal income tax purposes even if the Debentures were
distributed to the Holders of Securities in liquidation of such Holders'
interest in the Trust as described in this paragraph 4(c), or (ii) the
Administrative Trustees shall have been informed by such tax counsel that a No
Recognition Opinion cannot be delivered to the Trust (each such case, a
"Redemption Tax Event"), the Debenture Issuer shall have the right, upon at
least 30 but not more than 60 days' notice, to redeem the Debentures in whole
(but not in part) for cash within 90 days following the occurrence of such
Redemption Tax Event at a Redemption Price equal to 100% of the principal amount
of the Debentures so redeemed, plus any accrued and unpaid interest thereon to
the date fixed for redemption and promptly following such redemption, the
Securities shall be redeemed at the Redemption Price on a Pro Rata basis at $25
per Security plus accrued and unpaid distributions thereon to the date fixed for
redemption; provided, however, that if at the time there is available to the
Debenture Issuer or the Trust the opportunity to eliminate, within such 90 Day
Period, the Redemption Tax Event by taking some Ministerial Action which has no
adverse effect on the Trust, the Holders of Securities or the Debenture Issuer,
the Trust or the Debenture Issuer will pursue such Ministerial Action in lieu of
redemption.

         On the date fixed for any distribution of Debentures, upon dissolution
of the Trust: (i) the Securities will no longer be deemed to be outstanding,
(ii) the Depositary or its nominee, as the record Holder of the Trust Preferred
Securities, will receive a registered global certificate or certificates
representing the Debentures to be delivered upon such distribution and (iii) any
certificates representing Securities, except for certificates representing Trust
Preferred Securities held by the Depositary or its nominee, will be deemed to
represent beneficial interests in Debentures having an aggregate principal
amount equal to the stated liquidation amount, and bearing accrued and unpaid
interest equal to accrued and unpaid Distributions, on such Securities until
such certificates are presented to the Debenture Issuer or its agent for
transfer or reissuance.

                  (e)      Except for a redemption of Securities following a
redemption of Debentures described in paragraph 4(c), the Trust may not redeem
fewer than all of the outstanding Securities unless

                                       I-6

<PAGE>

all accrued and unpaid Distributions have been paid on all Securities for all
quarterly Distribution periods terminating on or before the date of redemption.

                  (f)      If the Debentures are distributed to holders of the
Securities, pursuant to the terms of the Indenture, the Debenture Issuer will
use its best efforts to have the Debentures listed on the New York Stock
Exchange or on such other securities exchange or automated quotation system as
the Trust Preferred Securities were listed or traded immediately prior to the
distribution of the Debentures.

                  (g)      Redemption or Distribution Procedures.

                           (i)      Notice of any redemption of Securities, and
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 of Securities to be redeemed or exchanged not fewer than 30 nor more than
60 days before the date fixed for redemption or exchange thereof which, in the
case of a redemption, will be the date fixed for redemption of the Debentures.
For purposes of the calculation of the date of redemption or exchange and the
dates on which notices are given pursuant to this paragraph 4(g)(i), a
Redemption/ Distribution Notice shall be deemed to be given on the day such
notice is first mailed by first- class mail, postage pre-paid, to Holders of
Securities. Each Redemption/Distribution Notice shall be addressed to the
Holders of Securities at the address of each such Holder appearing in the books
and records of the Trust. No defect in the Redemption/Distribution Notice or in
the mailing of either thereof with respect to any Holder shall affect the
validity of the redemption or exchange proceedings with respect to any other
Holder.

                           (ii)     In the event that fewer than all the
outstanding Securities are to be redeemed, the Securities to be redeemed shall
be redeemed Pro Rata from each Holder of Trust Preferred Securities, it being
understood that, in respect of Trust Preferred Securities registered in the name
of and held of record by the Depositary or its nominee, the distribution of the
proceeds of such redemption will be made to each Clearing Agency Participant (or
Person on whose behalf such nominee holds such securities) in accordance with
the procedures applied by such agency or nominee.

                           (iii)    If Securities are to be redeemed and the
Trust gives a Redemption/ Distribution Notice, which notice shall be irrevocable
and may only be issued if the Debentures are redeemed as set out in this Section
4, then (A) while the Trust Preferred Securities are in book-entry-only form,
with respect to the Trust Preferred Securities, by 12:00 noon, New York 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, the Property Trustee will irrevocably deposit with
the Depositary or its nominee funds sufficient to pay the amount payable on
redemption of the Trust Preferred Securities and will give the Depositary or its
nominee irrevocable instructions and authority to pay the amount payable on
redemption to the Holders of the Trust Preferred Securities, and (B) with
respect to Trust Preferred Securities issued in definitive form and Trust Common
Securities, 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, the Property Trustee will pay the amount payable on
redemption to the Holders of such Securities upon surrender of their
certificates. If a Redemption/Distribution Notice shall have been given and
funds deposited as required, then on the date of such deposit, all rights of
Holders of such Securities so called for redemption will cease, except the right
of the Holders of such Securities to receive the Redemption Price, but without
interest on such Redemption Price. Neither the Administrative Trustees nor the
Trust shall be required to register or cause to be registered the transfer of
any Securities that have been so called for redemption. If any date fixed for
redemption of Securities is not a Business Day, then payment of the amount
payable on such date will be made on the next succeeding day that is a Business
Day (without any interest or other payment in respect of any such delay) except
that, if such Business Day falls in the next calendar year, such payment will be

                                       I-7

<PAGE>
made on the immediately preceding Business Day, in each case with the same force
and effect as if made on such date fixed for redemption. If payment of the
Redemption Price in respect of any Securities is improperly withheld or refused
and not paid either by the Trust or by the Sponsor as guarantor pursuant to the
Trust Preferred Securities Guarantee or the Trust Common Securities Guarantee,
as applicable, Distributions on such Securities will continue to accrue at the
then applicable rate, from the original redemption date to the date of payment,
in which case the actual payment date will be considered the date fixed for
redemption for purposes of calculating the amount payable upon redemption (other
than for purposes of calculating any premium).

                           (iv)     Redemption/Distribution Notices shall be
sent by the Administrative Trustees on behalf of the Trust to (A) in the case of
Trust Preferred Securities, the Depositary or its nominee if the Global
Certificate(s) have been issued or, if Definitive Trust Preferred Securities
Certificates have been issued, to the Holders thereof and (B) in respect of the
Trust Common Securities, the Holder thereof.

                           (v)      Subject to the foregoing and applicable law
(including, without limitation, U.S. federal securities laws), the Sponsor or
any of its Subsidiaries may at any time and from time to time purchase
outstanding Trust Preferred Securities by tender, in the open market or by
private agreement.

         5.       Offer to Repurchase Upon Change of Control.

                  (a)      If a Change of Control occurs, each Holder of Trust
Preferred Securities will have the right to exchange all or any portion of such
Holder's Trust Preferred Securities for Debentures having a principal amount
equal to the liquidation amount of such Trust Preferred Securities and to
simultaneously require the Debenture Issuer to repurchase such Debentures at the
price and on the terms specified herein. In respect of Trust Preferred
Securities registered in the name of and held of record by the Depositary or its
nominee, the Trust Preferred Securities Beneficial Owners shall be entitled to
direct the Depositary as to the exercise of such right with respect to the
respective Trust Preferred Securities beneficially owned by them in the manner
established by law and agreements between such Trust Preferred Securities
Beneficial Owners and the Depositary and/or its Clearing Agency Participants.
The Property Trustee will effect the exchange of any Trust Preferred Securities
as to which such right is exercised for Debentures having a principal amount
equal to the liquidation amount of such Trust Preferred Securities at least
three Business Days prior to the Change of Control Payment Date (as defined
below).

                  (b)      If a Change of Control shall occur, the Debenture
Issuer will offer (the "Change of Control Offer") a Change of Control payment
(the "Change of Control Payment") in cash equal to 100% of the aggregate
principal amount of the Debentures tendered plus (except if the Change of
Control Payment Date shall be an interest payment date for the Debentures)
accrued and unpaid interest (including any Compounded Interest and Additional
Interest) thereon to the Change of Control Payment Date. Within 30 days
following any Change of Control, the Debenture Issuer will mail a notice to each
Holder of Trust Preferred Securities describing the transaction or transactions
that constitute the Change of Control and offering, pursuant to the procedures
required hereby and described in such notice, to repurchase Debentures on the
payment date (the "Change of Control Payment Date") specified in the notice,
which date will be no earlier than 30 days and no later than 60 days from the
date such notice is mailed. To exercise a repurchase right arising under this
Section 5, a Holder of the Trust Preferred Securities must deliver, within such
30-day period specified in the Debenture Issuer's notice, irrevocable written
notice to the Debenture Issuer, the Trust, the Property Trustee and any exchange
agent for such repurchase of such Holder's exercise of its repurchase right. The
Debenture Issuer will comply with the requirements of Rule 14e-1 under the
Exchange Act, and any other securities laws and regulations

                                       I-8

<PAGE>

thereunder to the extent those laws and regulations are applicable in connection
with the repurchase of the Debentures as a result of a Change of Control. To the
extent that the provisions of any securities laws or regulations conflict with
the Change of Control provisions hereof, the Debenture Issuer will comply with
the applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 5 by virtue of such conflict.

                  (c)      Prior to 10:00 a.m. New York City time on the Change
of Control Payment Date, the Debenture Issuer shall, to the extent lawful:

                           (i)      accept for payment all Debentures or
portions of Debentures properly tendered pursuant to the Change of Control
Offer;

                           (ii)     deposit with the Property Trustee or with
the exchange agent for the repurchase of Debentures an amount of money
sufficient to pay the Change of Control Payment in respect of all Debentures or
portions of Debentures properly tendered; and

                           (iii)    deliver or cause to be delivered to the
Indenture Trustee the Debentures properly accepted for repurchase, together with
an Officers' Certificate stating the aggregate principal amount of Debentures or
portions of Debentures being repurchased by the Debenture Issuer.

         Upon such acceptance, deposit and delivery, the Debentures properly
accepted for repurchase shall be repurchased by the Debenture Issuer, and the
Debenture Issuer (through the Indenture Trustee or the exchange agent) shall
promptly pay to each Holder of Trust Preferred Securities exchanged for
Debentures that have been properly tendered as provided above the Change of
Control Payment for such Debentures.

         6.       Voting Rights - Trust Preferred Securities.

                  (a)      Except as provided under paragraphs 6(b), 6(c) and 8,
in the Statutory Trust Act and as otherwise required by law and the Declaration,
the Holders of the Trust Preferred Securities will have no voting rights.

                  (b)      If a Declaration Event of Default has occurred and is
continuing, the Holders of the Trust Preferred Securities are entitled, to the
extent provided in Article V of the Declaration, to vote to appoint, remove or
replace the Property Trustee and/or the Delaware Trustee.

                  (c)      Subject to the requirements set forth in this
paragraph, the Holders of a Majority in liquidation amount of the Trust
Preferred Securities, voting separately as a class may direct the time, method,
and place of conducting any proceeding for any remedy available to the Property
Trustee, or direct the exercise of any trust or power conferred upon the
Property Trustee under the Declaration, including the right to direct the
Property Trustee, as holder of the Debentures, to (i) exercise the remedies
available to it under the Indenture as a holder of the Debentures, (ii) waive
any past default and its consequences that is waivable under the Indenture,
(iii) exercise any right to rescind or annul a declaration that the principal of
all the Debentures shall be due and payable, or (iv) consent to any amendment,
modification, or termination of the Indenture or the Debentures where such
consent shall be required; provided, however, that where a consent or action
under the Indenture would require the consent or act of the holders of greater
than a majority of the holders in principal amount of Debentures affected
thereby (a "Super Majority"), the Property Trustee may only give such consent or
take such action at the written direction of the Holders of at least the
proportion in liquidation amount of the Trust Preferred Securities which the
relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding. The Property Trustee shall be under no obligation to
revoke any action

                                       I-9

<PAGE>

previously authorized or approved by a vote of the Holders of the Trust
Preferred Securities. Other than with respect to directions as to the time,
method and place of conducting any proceeding for any remedy available to the
Property Trustee as set forth above, the Property Trustee shall be under no
obligation to take any action in accordance with the directions of the Holders
of the Trust Preferred Securities under this paragraph unless the Property
Trustee has obtained an opinion of independent tax counsel to the effect that,
for U.S. federal income tax purposes, the Trust will not be classified as other
than a grantor trust on account of such action and each Holder will be treated
as owning an undivided beneficial interest in the Debentures. If the Property
Trustee fails to enforce its rights under the Debentures after a Holder of Trust
Preferred Securities has made a written request, such Holder of Trust Preferred
Securities may, to the fullest extent permitted by applicable law in view of the
rights accorded the Holders of Trust Preferred Securities by this Declaration
and the Indenture, institute a legal proceeding against the Debenture Issuer to
enforce the Property Trustee's rights under the Debentures without first
instituting any legal proceeding against the Property Trustee or any other
Person. Notwithstanding the foregoing, if a Declaration Event of Default has
occurred and is continuing and such event is attributable to the failure of the
Debenture Issuer to pay interest, principal or premium on the Debentures on the
date such interest, principal or premium is due (or in the case of redemption on
the redemption date), then a Holder of Trust Preferred Securities may, to the
fullest extent permitted by applicable law in view of the rights accorded the
Holders of Trust Preferred Securities by this Declaration and the Indenture,
directly institute a proceeding (a "Direct Action") for payment to such Holder
of the principal, interest and premium then due on Debentures having a principal
amount equal to the aggregate liquidation amount of the Trust Preferred
Securities of such Holder. Except as provided in the preceding sentence, the
holders of Trust Preferred Securities will not be able to exercise directly any
other remedy available to the holders of the Debentures. In connection with such
Direct Action, the Debenture Issuer will be subrogated to the rights of such
Holder of Trust Preferred Securities under the Declaration to the extent of any
payment made by the Debenture Issuer to such Holder of Trust Preferred
Securities in such Direct Action.

         The right of a Holder of Trust Preferred Securities to bring a Direct
Action is subordinate and junior in right of payment to all present and future
Senior Debt (as defined in the Indenture), and the Holder will be subject to all
of the terms and conditions of Article XII of the Indenture with respect to such
right with the same effect as though fully set forth herein.

         Any required approval or direction of Holders of Trust Preferred
Securities may be given at a separate meeting of Holders of Trust 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 Administrative
Trustees will cause a notice of any meeting at which Holders of Trust 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
Trust Preferred Securities. Each such notice will include a statement setting
forth the following information (i) the date of such meeting or the date by
which such action is to be taken, (ii) a description of any resolution proposed
for adoption at such meeting on which such Holders are entitled to vote or of
such matter upon which written consent is sought and (iii) instructions for the
delivery of proxies or consents. No vote or consent of the Holders of the Trust
Preferred Securities will be required for the Trust to redeem and cancel Trust
Preferred Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities.

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

                                      I-10

<PAGE>

         7.       Voting Rights - Trust Common Securities.

                  (a)      Except as provided under paragraphs 7(b), 7(c) and 8,
in the Statutory Trust Act and as otherwise required by law and the Declaration,
the Holders of the Trust Common Securities will have no voting rights.

                  (b)      The Holders of the Trust Common Securities are
entitled, to the extent provided in Article V of the Declaration, to vote to
appoint, remove or replace any Trustee or to increase or decrease the number of
Trustees.

                  (c)      Subject to Section 2.6 of the Declaration and only
after the Declaration Event of Default with respect to the Trust Preferred
Securities has been cured, waived, or otherwise eliminated and subject to the
requirements of the immediately following sentence of this paragraph, the
Holders of a Majority in liquidation amount of the Trust Common Securities,
voting separately as a class, may direct the time, method, and place of
conducting any proceeding for any remedy available to the Property Trustee, or
exercising any trust or power conferred upon the Property Trustee under the
Declaration, including (i) directing the time, method, place of conducting any
proceeding for any remedy available to the Indenture Trustee, or exercising any
trust or power conferred on the Indenture Trustee with respect to the
Debentures, (ii) waive any past default and its consequences that is waivable
under Section 606 of the Indenture, (iii) exercise any right to rescind or annul
a declaration that the principal of all the Debentures shall be due and payable,
or (iv) consent to any amendment, modification, or termination of the Indenture
or the Debentures where such consent shall be required; provided that, where a
consent or action under the Indenture would require the consent or act of the
Holders of greater than a majority in principal amount of Debentures affected
thereby (a "Super Majority"), the Property Trustee may only give such consent or
take such action at the written direction of the Holders of at least the
proportion in liquidation amount of the Trust Common Securities which the
relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding. Pursuant to this paragraph 7(c), the Property Trustee
shall not revoke any action previously authorized or approved by a vote of the
Holders of the Trust Preferred Securities. Other than with respect to directing
the time, method and place of conducting any remedy available to the Property
Trustee or the Indenture Trustee as set forth above, the Property Trustee shall
be under no obligation to take any action in accordance with the directions of
the Holders of the Trust Common Securities under this paragraph unless the
Property Trustee has obtained an opinion of independent tax counsel to the
effect that for U.S. federal income tax purposes the Trust will not be
classified as other than a grantor trust on account of such action and each
Holder will be treated as owning an undivided beneficial interest in the
Debentures. If the Property Trustee fails to enforce its rights under the
Debentures after a Holder of Trust Common Securities has made a written request,
such Holder of Trust Common Securities may, to the extent permitted by law,
institute a legal proceeding directly against the Debenture Issuer or any other
Person to enforce the Property Trustee's rights under the Debentures, without
first instituting any legal proceeding against the Property Trustee or any other
Person. Any approval or direction of Holders of Trust Common Securities may be
given at a separate meeting of Holders of Trust 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 Trust 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 Trust 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.

                                      I-11

<PAGE>

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

         8.       Amendments to Declaration and Indenture.

                  (a)      In addition to any requirements under Section 12.1 of
the Declaration, if any proposed amendment to the Declaration provides for, or
the Administrative Trustees otherwise propose to effect, (i) any action that
would adversely affect in any material respect the powers, preferences or
special rights of the Securities (an amendment to specify procedures to deal
with fractional interests in Securities in connection with any redemption of
fewer than all the outstanding Securities will not be deemed to have any such
material adverse effect), whether by way of amendment to the Declaration or
otherwise, or (ii) the dissolution, winding-up or termination of the Trust,
other than as described in Section 8.1 of the Declaration, then the Holders of
Securities as a class, will be entitled to vote on such amendment or proposal
(but not on any other amendment or proposal) and such amendment or proposal
shall not be effective except with the approval of the Holders of at least a
Majority in liquidation amount of the Securities affected thereby, voting
together as a single class; provided, however, if any amendment or proposal
referred to in clause (i) above would adversely affect only the Trust Preferred
Securities or only the Trust Common Securities, then only the affected class
will be entitled to vote on such amendment or proposal and such amendment or
proposal shall not be effective except with the approval of a Majority in
liquidation amount of such class of Securities; provided, further, that no
amendment or proposal approved pursuant to this Section 7(a) shall become
effective unless the Administrative Trustees have received an opinion of counsel
to the effect that such amendment or proposal, or the exercise of any power
granted to the Trustees in accordance with such amendment or proposal, will not
adversely affect the Trust's status as a grantor trust for U.S. federal income
tax purposes or the Trust's exemption from status as an Investment Company under
the Investment Company Act.

                  (b)      In the event the consent of the Property Trustee as
the holder of the Debentures is required under the Indenture with respect to any
amendment, modification or termination of the Indenture or the Debentures, the
Property Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and shall
vote with respect to such amendment, modification or termination as directed by
a Majority in liquidation amount of the Securities voting together as a single
class; provided, however, that where a consent under the Indenture would require
the consent of the holders of greater than a majority in aggregate principal
amount of the Debentures (a "Super Majority"), the Property Trustee may only
give such consent at the written direction of the Holders of at least the same
proportion in aggregate stated liquidation preference of the Securities;
provided, further, that the Property Trustee shall not take any action in
accordance with the directions of the Holders of the Securities under this
Section 7(b) unless the Property Trustee has obtained an opinion of tax counsel
to the effect that, for U.S. federal income tax purposes, the Trust will not be
classified as other than a grantor trust on account of such action and each
Holder will be treated as owning an undivided beneficial interest in the
Debentures.

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

                                      I-12

<PAGE>

aggregate liquidation amount of Trust Common Securities held by the relevant
Holder relative to the aggregate liquidation amount of all Trust Common
Securities outstanding.

         10.      Ranking. The Trust Preferred Securities rank pari passu and
payment thereon shall be made Pro Rata with the Trust Common Securities except
that, where an Indenture Event of Default occurs and is continuing with respect
to the Debentures held by the Property Trustee, the rights of Holders of the
Trust Common Securities to receive payments of Distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights of the
Holders of the Trust Preferred Securities.

         11.      Listing. The Administrative Trustees shall use their best
efforts to cause the Trust Preferred Securities to be listed on the New York
Stock Exchange.

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

         13.      No Preemptive Rights. The Holders of the Securities shall have
no preemptive rights to subscribe for any additional securities.

         14.      Miscellaneous. These terms constitute a part of the
Declaration. The Sponsor will provide a copy of the Declaration, the Trust
Preferred Securities Guarantee or the Trust Common Securities Guarantee (as may
be appropriate), and the Indenture to a Holder without charge on written request
to the Sponsor at its principal place of business.

                                      I-13

<PAGE>

                                   EXHIBIT A-1

                 FORM OF TRUST PREFERRED SECURITIES CERTIFICATE

                          [FORM OF FACE OF CERTIFICATE]

         [IF THE TRUST PREFERRED SECURITY IS TO BE A GLOBAL CERTIFICATE INSERT -
THIS TRUST PREFERRED SECURITY IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE
DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (THE "DEPOSITARY") OR A NOMINEE OF THE DEPOSITARY. THIS
TRUST PREFERRED SECURITY IS EXCHANGEABLE FOR TRUST PREFERRED SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION AND NO TRANSFER OF
THIS TRUST PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS TRUST PREFERRED
SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. UNLESS THIS TRUST
PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE TRUST OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY TRUST
PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

Certificate Number [-]

Number of Trust Preferred Securities [-]

CUSIP NO. [-]

                Certificate Evidencing Trust Preferred Securities

                                       of

                       WestCoast Hospitality Capital Trust

         9.5% Trust Preferred Securities (Liquidation Amount of $25 per Trust
Preferred Security)

         WestCoast Hospitality Capital Trust, a statutory trust formed under the
laws of the State of Delaware (the "Trust"), hereby certifies that [-] (the
"Holder") is the registered owner of [-] preferred securities of the Trust
representing undivided beneficial interests in the assets of the Trust
designated the 9.5% Trust Preferred Securities (Liquidation Amount of $25 per
Trust Preferred Security) (the "Trust Preferred Securities"). The Trust
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 Trust 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 February 24, 2004, as the same may be amended from time to time (the
"Declaration"), including the

<PAGE>

designation of the terms of the Trust Preferred Securities as set forth in Annex
I to the Declaration. Capitalized terms used herein but not defined shall have
the meaning given them in the Declaration. The Holder is entitled to the
benefits of the Trust Preferred Securities Guarantee to the extent provided
therein. The Sponsor will provide a copy of the Declaration, the Trust Preferred
Securities Guarantee and the Indenture to a Holder without charge upon written
request to the Trust at its principal place of business.

         Reference is hereby made to select provisions of the Trust Preferred
Securities set forth on the reverse hereof, which select provisions shall for
all purposes have the same effect as if set forth at this place.

         Upon receipt of this certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder. In addition, the Holder
is deemed to have (i) agreed to the terms of the Indenture and the Debentures,
including that the Debentures are subordinate and junior in right of payment to
all present and future Senior Debt (as defined in the Indenture) as and to the
extent provided in the Indenture, (ii) agreed to the terms of the Trust
Preferred Securities Guarantee, including that the Trust Preferred Securities
Guarantee is subordinate and junior in right of payment to all other liabilities
of the Sponsor, including the Debentures, except those made pari passu or
subordinate by their terms, and (iii) agreed that the right of the Holder to
bring a Direct Action is subordinate and junior in right of payment to all
present and future Senior Debt (as defined in the Indenture), and the Holder
will be subject to all of the terms and conditions of Article XII of the
Indenture with respect to such right with the same effect as though fully set
forth herein. By acceptance of this certificate (or a beneficial interest in
this certificate), the Holder (and each Trust Preferred Securities Beneficial
Owner having a beneficial interest in this certificate) agrees to treat, for
U.S. federal income tax purposes, the Debentures as indebtedness and the Trust
Preferred Securities as evidence of indirect beneficial ownership of the
Debentures.

         Unless the Property Trustee's Certificate of Authentication hereon has
been properly executed, these Trust Preferred Securities shall not be entitled
to any benefit under the Declaration or be valid or obligatory for any purpose.

         IN WITNESS WHEREOF, the Trust has executed this certificate this [-]
day of _______, _____.

                                       WESTCOAST HOSPITALITY CAPITAL TRUST

                                       By: _____________________________________
                                           Administrative Trustee

PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Dated: __________, ______.

WILMINGTON TRUST COMPANY,
as Property Trustee

By: _____________________________
        Authorized Signatory

                                     A-1-2

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

         Distributions payable on each Trust Preferred Security will be fixed at
a rate per annum of 9.5% (the "Coupon Rate") of the stated liquidation amount of
$25 per Trust 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 quarter will bear interest thereon compounded quarterly at the
Coupon Rate (to the extent permitted by applicable law). The term
"Distributions" as used herein includes such cash distributions and any such
interest payable unless otherwise stated. A Distribution is payable only to the
extent that payments are made in respect of the Debentures held by the Property
Trustee and to the extent the Property Trustee has funds available therefor. The
amount of Distributions payable for any period will be computed for any full
quarterly Distribution period on the basis of a 360-day year of twelve 30-day
months, and for any period shorter than a full quarterly Distribution period for
which Distributions are computed, Distributions will be computed on the basis of
the actual number of days elapsed per 30-day month.

         Except as otherwise described below, distributions on the Trust
Preferred Securities will be cumulative, will accrue from February 24, 2004, and
will be payable quarterly and in arrears, on March 31, June 30, September 30 and
December 31 of each year, commencing on March 31, 2004, to Holders as they
appear on the books and records of the Trust on the relevant record dates. So
long as no Indenture Event of Default, and no event that, after notice or lapse
of time or both, would become an Indenture Event of Default, shall have occurred
and be continuing, the Debenture Issuer has the right at any time during the
term of the Debentures to defer the payment of interest on the Debentures for
one or more periods selected by the Debenture Issuer not exceeding 20
consecutive quarters for any such period (each, subject to extension and
shortening as provided in the following two sentences, a "Deferral Period");
except that each Deferral Period shall end on the last day of a calendar quarter
and no Deferral Period may extend beyond the maturity of the Debentures. At any
time prior to the end of a Deferral Period, the Debenture Issuer may, so long as
no Indenture Event of Default, and no event that, after notice or lapse of time
or both, would become an Indenture Event of Default, shall have occurred and be
continuing, extend the Deferral Period and further defer the payment of interest
on the Debentures, provided that the Deferral Period as so extended shall not
exceed 20 consecutive quarters or extend beyond the maturity of the Debentures.
At any time prior to the end of a calendar quarter ending prior to the end of a
Deferral Period, the Debenture Issuer may shorten the Deferral Period so that it
will end on the last day of such calendar quarter. The Debenture Issuer is
required to give notice to the Property Trustee each time it selects a Deferral
Period or extends or shortens a Deferral Period in progress, and promptly
following receipt of such notice the Property Trustee will cause notice thereof
to be given to each Holder of Trust Preferred Securities. During any such
Deferral Period, Distributions will be deferred. Despite such deferral,
quarterly Distributions will continue to accrue 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 Deferral Period. Payments of accrued Distributions
will be payable Pro Rata (as defined in Annex I to the Declaration) to Holders
on the last day of the Deferral Period. Upon the termination of any Deferral
Period and the payment of all amounts then due, the Debenture Issuer may
commence a new Deferral Period, subject to the above requirements.

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

                                     A-1-3

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned assigns and transfers this Trust
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 Trust Preferred Security Certificate on the books of the
Trust. The agent may substitute another to act for him or her.

         Date: ___________, 20___.

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

SIGNATURE GUARANTEED

By: ____________________________________________
    The signature must be guaranteed by an
    eligible guarantor institution (bank,
    stockbroker, savings and loan association or
    credit union with membership in an approved
    signature guarantee medallion program),
    pursuant to SEC Rule 17Ad-15.

                                     A-1-4

<PAGE>

                                   EXHIBIT A-2

                   FORM OF TRUST COMMON SECURITIES CERTIFICATE

                           [FORM OF FACE OF SECURITY]

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

THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT TO WESTCOAST HOSPITALITY CORPORATION
(THE "SPONSOR") OR A RELATED PARTY OF THE SPONSOR IN COMPLIANCE WITH APPLICABLE
LAW AND ARTICLE IX OF THE DECLARATION (AS DEFINED BELOW).

Certificate Number [-]

Number of Trust Common Securities [-]

                 Certificate Evidencing Trust Common Securities

                                       of

                       WestCoast Hospitality Capital Trust

         9.5% Trust Common Securities (Liquidation Amount of $25 per Trust
Common Security)

         WestCoast Hospitality Capital Trust, a statutory trust formed under the
laws of the State of Delaware (the "Trust"), hereby certifies that WestCoast
Hospitality Corporation (the "Holder") is the registered owner of [-] common
securities of the Trust representing undivided beneficial interests in the
assets of the Trust designated the 9.5% Trust Common Securities (Liquidation
Amount of $25 per Trust Common Security) (the "Trust Common Securities"). The
Trust 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
Trust 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 February 24, 2004, as the same may be amended from time
to time (the "Declaration"), including the designation of the terms of the Trust
Common Securities as set forth in Annex I to the Declaration. Capitalized terms
used herein but not defined shall have the meaning given them in the
Declaration. The Holder is entitled to the benefits of the Trust Common
Securities Guarantee to the extent provided therein. The Sponsor will provide a
copy of the Declaration, the Trust Common Securities Guarantee and the Indenture
to a Holder without charge upon written request to the Sponsor at its principal
place of business.

         Reference is hereby made to select provisions of the Trust Common
Securities set forth on the reverse hereof, which select provisions shall for
all purposes have the same effect as if set forth at this place.

<PAGE>

         Upon receipt of this certificate, the Holder is bound by the
Declaration and is entitled to the benefits thereunder. In addition, the Holder
is deemed to have (i) agreed to the terms of the Indenture and the Debentures,
including that the Debentures are subordinate and junior in right of payment to
all present and future Senior Debt (as defined in the Indenture) as and to the
extent provided in the Indenture and (ii) agreed to the terms of the Trust
Common Securities Guarantee, including that the Trust Common Securities
Guarantee is subordinate and junior in right of payment to all other liabilities
of the Sponsor, including the Debentures, except those made pari passu or
subordinate by their terms. By acceptance of this certificate, the Holder agrees
to treat for U.S. federal income tax purposes the Debentures as indebtedness and
the Trust Common Securities as evidence of indirect beneficial ownership of the
Debentures.

         IN WITNESS WHEREOF, the Trust has executed this certificate this [-]
day of _______, _____.

                                       WESTCOAST HOSPITALITY CAPITAL TRUST

                                       By: ____________________________________
                                            Administrative Trustee

                                     A-2-2

<PAGE>

                          [FORM OF REVERSE OF SECURITY]

         Distributions payable on each Trust Common Security will be fixed at a
rate per annum of 9.5% (the "Coupon Rate") of the stated liquidation amount of
$25 per Trust 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 quarter will bear interest thereon compounded quarterly at the
Coupon Rate (to the extent permitted by applicable law). The term
"Distributions" as used herein includes such cash distributions and any such
interest payable unless otherwise stated. A Distribution is payable only to the
extent that payments are made in respect of the Debentures held by the Property
Trustee and to the extent the Property Trustee has funds available therefor. The
amount of Distributions payable for any period will be computed for any full
quarterly Distribution period on the basis of a 360-day year of twelve 30-day
months, and for any period shorter than a full quarterly Distribution period for
which Distributions are computed, Distributions will be computed on the basis of
the actual number of days elapsed per 30-day month.

         Except as otherwise described below, distributions on the Trust Common
Securities will be cumulative, will accrue from February 24, 2004, and will be
payable quarterly and in arrears, on March 31, June 30, September 30 and
December 31 of each year, commencing on March 31, 2004, to Holders as they
appear on the books and records of the Trust on the relevant record dates. So
long as no Indenture Event of Default, and no event that, after notice or lapse
of time or both, would become an Indenture Event of Default, shall have occurred
and be continuing, the Debenture Issuer has the right at any time during the
term of the Debentures to defer the payment of interest on the Debentures for
one or more periods selected by the Debenture Issuer not exceeding 20
consecutive quarters for any such period (each, subject to extension and
shortening as provided in the following two sentences, a "Deferral Period");
except that each Deferral Period shall end on the last day of a calendar quarter
and no Deferral Period may extend beyond the maturity of the Debentures. At any
time prior to the end of a Deferral Period, the Debenture Issuer may, so long as
no Indenture Event of Default, and no event that, after notice or lapse of time
or both, would become an Indenture Event of Default, shall have occurred and be
continuing, extend the Deferral Period and further defer the payment of interest
on the Debentures, provided that the Deferral Period as so extended shall not
exceed 20 consecutive quarters or extend beyond the maturity of the Debentures.
At any time prior to the end of a calendar quarter ending prior to the end of a
Deferral Period, the Debenture Issuer may shorten the Deferral Period so that it
will end on the last day of such calendar quarter. The Debenture Issuer is
required to give notice to the Property Trustee each time it selects a Deferral
Period or extends or shortens a Deferral Period in progress, and promptly
following receipt of such notice the Property Trustee will cause notice thereof
to be given to each Holder of Trust Common Securities. During any such Deferral
Period, Distributions will be deferred. Despite such deferral, quarterly
Distributions will continue to accrue 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 Deferral Period. Payments of accrued Distributions
will be payable Pro Rata (as defined in Annex I to the Declaration) to Holders
on the last day of the Deferral Period. Upon the termination of any Deferral
Period and the payment of all amounts then due, the Debenture Issuer may
commence a new Deferral Period, subject to the above requirements.

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

                                     A-2-3

<PAGE>

                                   ASSIGNMENT

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

             ___________________________________________________________________

             ___________________________________________________________________

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

             ___________________________________________________________________

             ___________________________________________________________________

             ___________________________________________________________________
             (Insert address and zip code of assignee)

and irrevocably appoints

             ___________________________________________________________________

             ___________________________________________________________________

             ___________________________________________________________________

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

         Date: __________, 20___.

         Signature:
                                  ______________________________________________
                                  Sign exactly as your name appears on the other
                                  side of this Trust Common Security
                                  Certificate)

SIGNATURE GUARANTEED

By: ______________________________________________
    The signature must be guaranteed by an
    eligible guarantor institution (bank,
    stockbroker, savings and loan association or
    credit union with membership in an approved
    signature guarantee medallion program),
    pursuant to SEC Rule 17Ad-15.

                                      A-2-4

<PAGE>

                                    EXHIBIT B
                              SPECIMEN OF DEBENTURE

                           See Exhibit A of Indenture

<PAGE>

                                    EXHIBIT C
                             UNDERWRITING AGREEMENT

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