Document:

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                                                                    EXHIBIT 10.8

                                   INDENTURE

                                 BY AND BETWEEN

                         PARADIGM BANCORPORATION, INC.

                                      AND

                FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION,
                                   AS TRUSTEE

                    10.375% SUBORDINATED DEBENTURES DUE 2029

                          DATED AS OF DECEMBER 1, 1999
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                               TABLE OF CONTENTS

                                                                           Page
                                                                           ----
ARTICLE I

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

ARTICLE II

 ISSUE, DESCRIPTION, TERMS, CONDITIONS,
 REGISTRATION AND EXCHANGE OF THE DEBENTURES.............................   10
 Section 2.1   Designation and Principal Amount..........................   10
 Section 2.2   Maturity..................................................   10
 Section 2.3   Form and Payment..........................................   11
 Section 2.4   Intentionally Left Blank..................................   11
 Section 2.5   Interest..................................................   11
 Section 2.6   Execution and Authentications.............................   12
 Section 2.7   Registration of Transfer and Exchange.....................   13
 Section 2.8   Temporary Debentures......................................   14
 Section 2.9   Mutilated, Destroyed, Lost or Stolen Debentures...........   14
 Section 2.10  Cancellation..............................................   15
 Section 2.11  Benefit of Indenture......................................   15
 Section 2.12  Authentication Agent......................................   15

ARTICLE III

 REDEMPTION OF DEBENTURES................................................   16
 Section 3.1   Redemption................................................   16
 Section 3.2   Special Event Redemption..................................   16
 Section 3.3   Optional Redemption by Company............................   17
 Section 3.4   Notice of Redemption......................................   17
 Section 3.5   Payment Upon Redemption...................................   18
 Section 3.6   No Sinking Fund...........................................   19

ARTICLE IV

 EXTENSION OF INTEREST PAYMENT PERIOD....................................   19
 Section 4.1   Extension of Interest Payment Period......................   19
 Section 4.2   Notice of Extension.......................................   19
 Section 4.3   Limitation on Transactions................................   20

                                       2
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ARTICLE V

 PARTICULAR COVENANTS OF THE COMPANY.....................................   20
 Section 5.1   Payment of Principal and Interest.........................   20
 Section 5.2   Maintenance of Agency.....................................   21
 Section 5.3   Paying Agents.............................................   21
 Section 5.4   Appointment to Fill Vacancy in Office of Trustee..........   22
 Section 5.5   Compliance with Consolidation Provisions..................   22
 Section 5.6   Limitation on Transactions................................   22
 Section 5.7   Covenants as to the Trust.................................   23
 Section 5.8   Covenants as to Purchases.................................   23
 Section 5.9   Waiver of Usury, Stay or Extension Laws...................   23

ARTICLE VI

 DEBENTURE HOLDERS' LISTS AND REPORTSBY THE
  COMPANY AND THE TRUSTEE................................................   24
 Section 6.1   Company to Furnish Trustee Names and Addresses
               of Debenture holders......................................   24
 Section 6.2   Preservation of Information Communications with
               Debenture holders   24
 Section 6.3   Reports by the Company....................................   24
 Section 6.4   Reports by the Trustee....................................   25

ARTICLE VII

 REMEDIES OF THE TRUSTEE AND DEBENTURE HOLDERSON
  EVENT OF DEFAULT.......................................................   25
 Section 7.1   Events of Default.........................................   25
 Section 7.2   Collection of Indebtedness and Suits for Enforcement
               by Trustee................................................   27
 Section 7.3   Application of Moneys Collected...........................   28
 Section 7.4   Limitation on Suits.......................................   29
 Section 7.5   Rights and Remedies Cumulative; Delay or Omission
               not Waiver................................................   29
 Section 7.6   Control by Debenture holders..............................   30
 Section 7.7   Undertaking to Pay Costs..................................   30
 Section 7.8   Direct Action; Right of Set-Off...........................   31

ARTICLE VIII

 FORM OF DEBENTURE AND ORIGINAL ISSUE....................................   31
 Section 8.1   Form of Debenture.........................................   31
 Section 8.2   Original Issue of Debentures..............................   31

ARTICLE IX

 CONCERNING THE TRUSTEE..................................................   32

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 Section 9.1   Certain Duties and Responsibilities of the Trustee........   32
 Section 9.2   Notice of Defaults........................................   33
 Section 9.3   Certain Rights of Trustee.................................   33
 Section 9.4   Trustee Not Responsible for Recitals, etc.................   35
 Section 9.5   May Hold Debentures.......................................   35
 Section 9.6   Moneys Held in Trust......................................   35
 Section 9.7   Compensation and Reimbursement............................   35
 Section 9.8   Reliance on Officers' Certificate.........................   36
 Section 9.9   Disqualification: Conflicting Interests...................   36
 Section 9.10  Corporate Trustee Required; Eligibility...................   36
 Section 9.11  Resignation and Removal; Appointment of Successor.........   36
 Section 9.12  Acceptance of Appointment by Successor....................   38
 Section 9.13  Merger, Conversion, Consolidation or Succession to Business  38
 Section 9.14  Preferential Collection of Claims Against the Company.....   39

ARTICLE X

 CONCERNING THE DEBENTURE HOLDERS........................................   39
 Section 10.1  Evidence of Action by Holders.............................   39
 Section 10.2  Proof of Execution by Debenture holders...................   39
 Section 10.3  Who May be Deemed Owners..................................   40
 Section 10.4  Certain Debentures Owned by Company Disregarded...........   40
 Section 10.5  Actions Binding on Future Debenture holders...............   41

ARTICLE XI

 SUPPLEMENTAL INDENTURES.................................................   41
 Section 11.1  Supplemental Indentures Without the Consent of
               Debenture holders.........................................   41
 Section 11.2  Supplemental Indentures with Consent of Debenture holders.   42
 Section 11.3  Effect of Supplemental Indentures.........................   42
 Section 11.4  Debentures Affected by Supplemental Indentures............   43
 Section 11.5  Execution of Supplemental Indentures......................   43

ARTICLE XII

 SUCCESSOR CORPORATION...................................................   44
 Section 12.1  Company May Consolidate, etc..............................   44
 Section 12.2  Successor Corporation Substituted.........................   44
 Section 12.3  Evidence of Consolidation, etc. to Trustee................   45

ARTICLE XIII

 SATISFACTION AND DISCHARGE..............................................   45
 Section 13.1  Satisfaction and Discharge of Indenture...................   45
 Section 13.2  Discharge of Obligations..................................   45

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 Section 13.3  Deposited Moneys to be Held in Trust......................   46
 Section 13.4  Payment of Monies Held by Paying Agents...................   46
 Section 13.5  Repayment to Company......................................   46

ARTICLE XIV

 IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
  OFFICERSAND DIRECTORS..................................................   47
 Section 14.1  No Recourse...............................................   47

ARTICLE XV

 MISCELLANEOUS PROVISIONS................................................   47
 Section 15.1  Effect on Successors and Assigns..........................   47
 Section 15.2  Actions by Successor......................................   47
 Section 15.3  Surrender of Company Powers...............................   48
 Section 15.4  Notices...................................................   48
 Section 15.5  Governing Law.............................................   48
 Section 15.6  Treatment of Debentures as Debt...........................   48
 Section 15.7  Compliance Certificates and Opinions......................   48
 Section 15.8  Payments on Business Days.................................   49
 Section 15.9  Conflict with Trust Indenture Act.........................   49
 Section 15.10 Counterparts..............................................   49
 Section 15.11 Separability..............................................   49
 Section 15.12 Assignment................................................   49
 Section 15.13 Acknowledgment of Rights..................................   50

ARTICLE XVI

 SUBORDINATION OF DEBENTURES.............................................   50
 Section 16.1  Agreement to Subordinate..................................   50
 Section 16.2  Default on Senior Debt, Subordinated Debt or
               Additional Senior Obligations.............................   50
 Section 16.3  Liquidation; Dissolution; Bankruptcy......................   51
 Section 16.4  Subrogation...............................................   52
 Section 16.5  Trustee to Effectuate Subordination.......................   53
 Section 16.6  Notice by the Company.....................................   53
 Section 16.7  Rights of the Trustee; Holders of Senior Indebtedness.....   54
 Section 16.8  Subordination may not be Impaired.........................   54

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                             CROSS-REFERENCE TABLE

SECTION OF
TRUST INDENTURE ACT                                                  SECTION OF
OF 1939, AS AMENDED                                                   INDENTURE
-------------------                                                   ----------
310(a)........................................................            9.10
310(b)........................................................             9.9
                                                                          9.11
310(c)........................................................  Not Applicable
311(a)........................................................            9.14
311(b)........................................................            9.14
311(c)........................................................  Not Applicable
312(a)........................................................             6.1
                                                                        6.2(a)
312(b)........................................................          6.2(c)
312(c)........................................................          6.2(c)
313(a)........................................................          6.4(a)
313(b)........................................................          6.4(b)
313(c)........................................................          6.4(a)
                                                                        6.4(b)
313(d)........................................................          6.4(c)
314(a)........................................................          6.3(a)
314(b)........................................................  Not Applicable
314(c)........................................................            15.7
314(d)........................................................  Not Applicable
314(e)........................................................            15.7
314(f)........................................................  Not Applicable
315(a)........................................................          9.1(a)
                                                                           9.3
315(b)........................................................             9.2
315(c)........................................................          9.1(a)
315(d)........................................................          9.1(b)
315(e)........................................................             7.7
316(a)........................................................             1.1
                                                                           7.6
316(b)........................................................          7.4(b)
316(c)........................................................         10.1(b)
317(a)........................................................             7.2
317(b)........................................................             5.3
318(a)........................................................            15.9

Note:  This reconciliation and tie sheet shall not, for any purpose, be deemed
       to be a part of the Indenture.

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                                   INDENTURE

     INDENTURE, dated as of December 1, 1999, between PARADIGM BANCORPORATION,
INC., a Texas corporation (the "Company") and FIRST UNION TRUST COMPANY,
NATIONAL ASSOCIATION, a national banking association with its principal place of
business in the State of Delaware (the "Trustee");

                                    RECITALS

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance of
securities to be known as its 10.375% Subordinated Debentures due 2029
(hereinafter referred to as the "Debentures"), the form and substance of such
Debentures and the terms, provisions and conditions thereof to be set forth as
provided in this Indenture;

     WHEREAS, Paradigm Capital Trust I, a Delaware statutory business trust (the
"Trust"), has offered to the public up to $5,125,000 aggregate liquidation
amount of its Trust Preferred Securities (as defined herein) and proposes to
invest the proceeds from such offering, together with the proceeds of the
issuance and sale by the Trust to the Company of up to $160,000 aggregate
liquidation amount of its Common Securities (as defined herein), in up to
$5,285,000 aggregate principal amount of the Debentures;

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

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

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

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

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

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                                   ARTICLE I

                                  DEFINITIONS

SECTION 1.1   DEFINITIONS OF TERMS.

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

     "Accelerated Maturity Date" means if the Company elects to accelerate the
Maturity Date in accordance with Section 2.2(c), the date selected by the
Company which is prior to the Scheduled Maturity Date, but is after December
31,1999.

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

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

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

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

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

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

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

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

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

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

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

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

      "Commission" means the Securities and Exchange Commission.

      "Common Securities" means undivided beneficial interests in the assets of
the Trust which rank pari passu with the Trust Preferred Securities; provided,
however, that upon the occurrence of

                                       3
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an Event of Default, the rights of holders of Common Securities to payment in
respect of distributions and payments upon liquidation, redemption and otherwise
are subordinated to the rights of holders of Trust Preferred Securities.

      "Company" means Paradigm Bancorporation, Inc., a corporation duly
organized and existing under the laws of the State of Texas, and, subject to the
provisions of Article XII, shall also include its successors and assigns.

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

      "Corporate Trust Office" means the office of the Trustee at which, at any
particular time, its corporate trust business shall be principally administered,
which office at the date hereof is located at One Rodney Square, 920 King
Street, 1/st/ Floor, Wilmington, Delaware 19801, Attention: Corporate Trust
Administration.

      "Coupon Rate" shall have the meaning set forth in Section 2.5.

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

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

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

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

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

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

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

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

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

      "Exchange Act," means the Securities Exchange Act of 1934, as amended, as
in effect at the date of execution of this instrument.

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

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

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

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

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

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

      "Interest Payment Date," when used with respect to any installment of
interest on the Debentures, means the date specified in the Debenture or in an
indenture supplemental hereto with

                                       5
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respect to the Debentures as the fixed date on which an installment of interest
with respect to the Debentures is due and payable.

      "Investment Company Act," means the Investment Company Act of 1940, as
amended, as in effect at the date of execution of this instrument.

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

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

     "Ministerial Action" shall have the meaning set forth in Section 3.2.

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

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

      "Outstanding," when used with reference to the Debentures, means, subject
to the provisions of Section 10.4, as of any particular time, all Debentures
theretofore authenticated and delivered by the Trustee under this Indenture,
except (i) Debentures theretofore canceled by the Trustee or any paying agent,
or delivered to the Trustee or any paying agent for cancellation or that have
previously been canceled; (ii) Debentures or portions thereof for the payment or
redemption of which moneys or Governmental Obligations in the necessary amount
shall have been deposited in trust with the Trustee or with any paying agent
(other than the Company) or shall have been set aside and segregated in trust by
the Company (if the Company shall act as its own paying agent); provided,
however, that if such Debentures or portions of such Debentures are to be
redeemed prior to the maturity thereof, notice of such redemption shall have
been given as in Article III provided, or

                                       6
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provision satisfactory to the Trustee shall have been made for giving such
notice; and (iii) Debentures in lieu of or in substitution for which other
Debentures shall have been authenticated and delivered pursuant to the terms of
Section 2.7; provided, however, that in determining whether the holders of the
requisite percentage of Debentures have given any request, notice, consent or
waiver hereunder, Debentures held by the Company or any Affiliate of the Company
shall not be included; provided, further, that the Trustee shall be protected in
acting upon any request, notice, consent or waiver unless a Responsible Officer
of the Trustee shall have actual knowledge that the holder of such Debenture is
the Company or an Affiliate thereof.

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

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

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

      "Redemption Price" shall have the meaning set forth in Section 3.2.

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

      "Scheduled Maturity Date" means December 1, 2029.

      "Securities Act," means the Securities Act of 1933, as amended, as in
effect at the date of execution of this instrument.

      "Senior Debt" means the principal of (and premium, if any) and interest,
if any (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not such
claim for post-petition interest is allowed in such proceeding), on Debt,
whether incurred on or prior to the date of this Indenture or thereafter
incurred, unless, in the instrument creating or evidencing the same or pursuant
to which the same is outstanding, it is provided that such obligations are not
superior in right of payment to the Debentures or to other Debt which is pari
passu with, or subordinated to, the Debentures; provided, however, that Senior
Debt shall not be deemed to include (i) any Debt of the Company which when
incurred and without respect to any election under section 1111(b) of the United
States Bankruptcy Code of 1978, as amended, was without recourse to the Company;
(ii) any Debt of the Company to any of its subsidiaries; (iii) Debt to any
employee of the Company; (iv) Debt which by its terms is subordinated

                                       7
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to trade accounts payable or accrued liabilities arising in the ordinary course
of business to the extent that payments made to the holders of such Debt by the
holders of the Debentures as a result of the subordination provisions of this
Indenture would be greater than they otherwise would have been as a result of
any obligation of such holders to pay amounts over to the obligees on such trade
accounts payable or accrued liabilities arising in the ordinary course of
business as a result of subordination provisions to which such Debt is subject;
and (v) Debt which constitutes Subordinated Debt.

      "Senior Indebtedness" shall have the meaning set forth in Section 16.2.

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

      "Subordinated Debt" means the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company whether or
not such claim for post-petition interest is allowed in such proceeding), on
Debt, whether incurred on or prior to the date of this Indenture or thereafter
incurred, which is by its terms expressly provided to be junior and subordinate
to Senior Debt of the Company (other than the Debentures); provided, however,
that Subordinated Debt will not be deemed to include (i) any Debt of the Company
which when incurred and without respect to any election under section 1111(b) of
the United States Bankruptcy Code of 1978, as amended, was without recourse to
the Company, (ii) any Debt of the Company to any of its subsidiaries, (iii) any
Debt to any employee of the Company, (iv) any Debt which by its terms is
subordinated to trade accounts payable or accrued liabilities arising in the
ordinary course of business to the extent that payments made to the holders of
such Debt by the holders of the Subordinated Debentures as a result of the
subordination provisions of the Indenture would be greater than they otherwise
would have been as a result of any obligation of such holders to pay amounts
over to the obligees on such trade accounts payable or accrued liabilities
arising in the ordinary course of business as a result of subordination
provisions to which such Debt is subject, (v) Debt which constitutes Senior Debt
and (vi) any Debt of the Company under debt securities (and guarantees in
respect of these debt securities) initially issued to any trust, or a trustee of
a trust, partnership or other entity affiliated with the Company that is,
directly or indirectly, a financing vehicle of the Company in connection with
the issuance by that entity of preferred securities or other securities which
are intended to qualify for Tier 1 capital treatment.

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

                                       8
<PAGE>

      "Tax Event" means the receipt by the Company and the Trust of an Opinion
of Counsel, rendered by a law firm having a recognized national tax and
securities practice, to the effect that, as a result of any amendment to, or
change (including any announced prospective change) in, the laws (or any
regulations thereunder) of the United States or any political subdivision or
taxing authority thereof or therein, or as a result of any official
administrative pronouncement or judicial decision interpreting or applying such
laws or regulations, which amendment or change is effective or which
pronouncement or decision is announced on or after the date of issuance of the
Trust Preferred Securities under the Trust Agreement, there is more than an
insubstantial risk that (i) the Trust is, or shall be within 90 days after the
date of such Opinion of Counsel, subject to United States federal income tax
with respect to income received or accrued on the Debentures; (ii) interest
payable by the Company on the Debentures is not, or within 90 days after the
date of such Opinion of Counsel, shall not be, deductible by the Company, in
whole or in part, for United States federal income tax purposes; or (iii) the
Trust is, or shall be within 90 days after the date of such Opinion of Counsel,
subject to more than a de minimis amount of other taxes, duties, assessments or
other governmental charges; provided, however, that the Trust or the Company
shall have requested and received such an Opinion of Counsel with regard to such
matters within a reasonable period of time after the Trust or the Company shall
have become aware of the possible occurrence of any of the events described in
clauses (i) through (iii) above.

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

     "Trust Agreement" means the Amended and Restated Trust Agreement, dated as
of December 1, 1999, of the Trust.

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

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

      "Trustee" means First Union Trust Company, National Association and,
subject to the provisions of Article IX, shall also include its successors and
assigns, and, if at any time there is more than one Person acting in such
capacity hereunder, "Trustee" shall mean each such Person.

      "Trust Indenture Act," means the Trust Indenture Act of 1939, as amended,
subject to the provisions of Sections 11.1, 11.2, and 12.1, as in effect at the
date of execution of this instrument.

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

      "Voting Stock," as applied to stock of any Person, means shares,
interests, participations or other equivalents in the equity interest (however
designated) in such Person having ordinary voting

                                       9
<PAGE>

power for the election of a majority of the directors (or the equivalent) of
such Person, other than shares, interests, participations or other equivalents
having such power only by reason of the occurrence of a contingency.

                                   ARTICLE II

                     ISSUE, DESCRIPTION, TERMS, CONDITIONS,
                  REGISTRATION AND EXCHANGE OF THE DEBENTURES

SECTION 2.1   DESIGNATION AND PRINCIPAL AMOUNT.

     There is hereby authorized Debentures designated the "10.375% Subordinated
Debentures due 2029," limited in aggregate principal amount to $5,285,000, which
amount shall be as set forth in any written order of the Company for the
authentication and delivery of Debentures pursuant to Section 2.6.

SECTION 2.2   MATURITY.

        (a)   The Maturity Date shall be either:

              (i)  the Scheduled Maturity Date; or

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

        (b) the Company may at any time before the day which is 90 days before
the Scheduled Maturity Date and after December 31, 1999, elect to shorten the
Maturity Date only once to the Accelerated Maturity Date provided that the
Company has received the prior approval of the Federal Reserve if then required
under applicable capital guidelines, policies or regulations of the Federal
Reserve.

        (c) if the Company elects to accelerate the Maturity Date in accordance
with Section 2.2(b), the Company shall give notice to the Trustee and the Trust
(unless the Trust is not the holder of the Debentures, in which case the Trustee
will give notice to the holders of the Debentures) of the acceleration of the
Maturity Date and the Accelerated Maturity Date at least 90 days and no more
than 180 days before the Accelerated Maturity Date.

SECTION 2.3   FORM AND PAYMENT.

        The Debentures shall be issued in fully registered certificated form
without interest coupons. Principal and interest on the Debentures issued in
certificated form shall be payable, the transfer of such Debentures shall be
registrable and such Debentures shall be exchangeable for Debentures bearing
identical terms and provisions at the office or agency of the Trustee; provided,
however, that

                                       10
<PAGE>

payment of interest may be made at the option of the Company by check mailed to
the holder at such address as shall appear in the Debenture Register or by wire
transfer to an account maintained by the holder as specified in the Debenture
Register, provided that the holder provides proper transfer instructions by the
regular record date. Notwithstanding the foregoing, so long as the holder of any
Debentures is the Property Trustee, the payment of principal of and interest
(including Compounded Interest and Additional Interest, if any) on such
Debentures held by the Property Trustee shall be made at such place and to such
account as may be designated by the Property Trustee.

SECTION 2.4   INTENTIONALLY LEFT BLANK.

SECTION 2.5   INTEREST.

     (a) Each Debenture shall bear interest at the rate of 10.375% per annum
(the "Coupon Rate") from the original date of issuance until the principal
thereof becomes due and payable, and on any overdue principal and (to the extent
that payment of such interest is enforceable under applicable law) on any
overdue installment of interest at the Coupon Rate, compounded quarterly,
payable (subject to the provisions of Article IV) quarterly in arrears on March
31, June 30, September 30 and December 31 of each year (each, an "Interest
Payment Date"), commencing on March 31, 2000 to the Person in whose name such
Debenture or any Predecessor Debenture is registered, at the close of business
on the regular record date for such interest installment, which shall be the
fifteenth day of the last month of the calendar quarter.

     (b) The amount of interest payable for any period shall be computed on the
basis of a 360-day year of twelve 30-day months. The amount of interest payable
for any period shorter than a full quarterly period for which interest is
computed, shall be computed on the basis of the number of days elapsed in a 360-
day year of twelve 30-day months. In the event that any date on which interest
is payable on the Debentures is not a Business Day, then payment of interest
payable on such date shall be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of any such
delay) except that, if such Business Day is in the next succeeding calendar
year, such payment shall be made on the immediately preceding Business Day (and
without any reduction of interest or any other payment in respect of any such
acceleration), in each case with the same force and effect as if made on the
date such payment was originally payable.

     (c) 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 case, the Company shall pay as additional interest ("Additional
Interest") on the Debentures held by the Property Trustee, such additional
amounts as shall be required so that the net amounts received and retained by
the Trust and the Property Trustee after paying such taxes, duties, assessments
or other governmental charges shall be equal to the amounts the Trust and the
Property Trustee would have received had no such taxes, duties, assessments or
other government charges been imposed.

                                       11
<PAGE>

SECTION 2.6   EXECUTION AND AUTHENTICATIONS.

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

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

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

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

SECTION 2.7   REGISTRATION OF TRANSFER AND EXCHANGE.

     (a) Debentures may be exchanged upon presentation thereof at the office or
agency of the Company designated for such purpose in New York, New York or
Wilmington, Delaware or at the office of the Debenture Registrar, for other
Debentures and for a like aggregate principal amount in denominations of
integral multiples of $10, upon payment of a sum sufficient to cover any tax or
other governmental charge in relation thereto, all as provided in this Section
2.7. In respect of any Debentures so surrendered for exchange, the Company shall
execute, the Trustee shall authenticate and such office or agency shall deliver
in exchange therefor the Debenture or Debentures that the Debentureholder making
the exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

                                       12
<PAGE>

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

     (c) No service charge shall be made for any exchange or registration of
transfer of Debentures, or issue of new Debentures in case of partial
redemption, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge in relation thereto, other than exchanges
pursuant to Section 2.8, the second paragraph of Section 3.5 and Section 11.4
not involving any transfer.

     (d) The Company shall not be required (i) to issue, exchange or register
the transfer of any Debentures during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of less
than all the Outstanding Debentures and ending at the close of business on the
day of such mailing; nor (ii) to register the transfer of or exchange any
Debentures or portions thereof called for redemption.

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

SECTION 2.8   TEMPORARY DEBENTURES.

     Pending the preparation of definitive Debentures, the Company may execute,
and the Trustee shall authenticate and deliver, temporary Debentures (printed,
lithographed, or typewritten). Such temporary Debentures shall be substantially
in the form of the definitive Debentures in lieu of which they are issued, but
with such omissions, insertions and variations as may be appropriate for
temporary Debentures, all as may be determined by the Company. Every temporary
Debenture shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Debentures. Without unnecessary delay the Company
shall execute and shall furnish definitive Debentures and thereupon any or all
temporary Debentures may be surrendered in exchange therefor (without charge to
the holders), at the office or agency of the Company designated for the purpose
in New York, New York

                                       13
<PAGE>

or Wilmington, Delaware and the Trustee shall authenticate and such office or
agency shall deliver in exchange for such temporary Debentures an equal
aggregate principal amount of definitive Debentures, unless the Company advises
the Trustee to the effect that definitive Debentures need not be executed and
furnished until further notice from the Company. Until so exchanged, the
temporary Debentures shall be entitled to the same benefits under this Indenture
as definitive Debentures authenticated and delivered hereunder.

SECTION 2.9   MUTILATED, DESTROYED, LOST OR STOLEN DEBENTURES.

     (a) In case any temporary or definitive Debenture shall become mutilated or
be destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company's request the Trustee (subject as
aforesaid) shall authenticate and deliver, a new Debenture bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated
Debenture, or in lieu of and in substitution for the Debenture so destroyed,
lost, stolen or mutilated. In every case the applicant for a substituted
Debenture shall furnish to the Company and the Trustee such security or
indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant's Debenture and of the ownership thereof.  The
Trustee may authenticate any such substituted Debenture and deliver the same
upon the written request or authorization of the Chairman, President or any Vice
President and the Treasurer or any Assistant Treasurer of the Company. Upon the
issuance of any substituted Debenture, the Company may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith. In case any Debenture that has matured or is
about to mature shall become mutilated or be destroyed, lost or stolen, the
Company may, instead of issuing a substitute Debenture, pay or authorize the
payment of the same (without surrender thereof except in the case of a mutilated
Debenture) if the applicant for such payment shall furnish to the Company and
the Trustee such security or indemnity as they may require to save them
harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft of
such Debenture and of the ownership thereof.

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

                                       14
<PAGE>

SECTION 2.10   CANCELLATION.

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

 SECTION 2.11   BENEFIT OF INDENTURE.

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

 SECTION 2.12   AUTHENTICATION AGENT.

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

     (b) Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time (and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint an
eligible successor

                                       15
<PAGE>

Authenticating Agent acceptable to the Company. Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with
all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

                                  ARTICLE III

                            REDEMPTION OF DEBENTURES

SECTION 3.1   REDEMPTION.

     Subject to the Company having received prior approval of the Federal
Reserve, if then required under the applicable capital guidelines, policies or
regulations of the Federal Reserve, the Company may redeem the Debentures issued
hereunder on and after the dates set forth in and in accordance with the terms
of this Article III.

SECTION 3.2   SPECIAL EVENT REDEMPTION.

     Subject to the Company having received the prior approval of the Federal
Reserve, if then required under the applicable capital guidelines, policies or
regulations of the Federal Reserve, if a Special Event has occurred and is
continuing, then, notwithstanding Section 3.3(a) but subject to Section 3.3(b),
the Company shall have the right upon not less than 30 days nor more than 60
days notice to the holders of the Debentures to redeem the Debentures, in whole
but not in part, for cash within 180 days following the occurrence of such
Special Event (the "180-Day Period") at a redemption price equal to 100% of the
principal amount to be redeemed plus any accrued and unpaid interest thereon to
the date of such redemption (the "Redemption Price"), provided that if at the
time there is available to the Company the opportunity to eliminate, within the
180-Day Period, a Tax Event by taking some ministerial action (a "Ministerial
Action"), such as filing a form or making an election, or pursuing some other
similar reasonable measure which has no adverse effect on the Company, the Trust
or the holders of the Trust Securities issued by the Trust, the Company shall
pursue such Ministerial Action in lieu of redemption. The Redemption Price shall
be paid prior to 12:00 noon, New York time, on the date of such redemption or
such earlier time as the Company determines, provided that the Company shall
deposit with the Trustee an amount sufficient to pay the Redemption Price by
10:00 a.m., New York time, on the date such Redemption Price is to be paid.

SECTION 3.3   OPTIONAL REDEMPTION BY COMPANY.

     (a) Subject to the provisions of Section 3.3(b), except as otherwise may be
specified in this Indenture, the Company shall have the right to redeem the
Debentures, in whole or in part, from time to time, on or after December 31,
1999, at a Redemption Price equal to 100% of the principal amount to be redeemed
plus any accrued and unpaid interest thereon to the date of such redemption. Any
redemption pursuant to this Section 3.3(a) shall be made upon not less than 30
days nor more than 60 days notice to the holder of the Debentures, at the
Redemption Price.  If the Debentures are only partially redeemed pursuant to
this Section 3.3, the Debentures shall be redeemed pro rata or

                                       16
<PAGE>

by lot or in such other manner as the Trustee shall deem appropriate and fair in
its discretion. The Redemption Price shall be paid prior to 12:00 noon, New York
time, on the date of such redemption or at such earlier time as the Company
determines provided that the Company shall deposit with the Trustee an amount
sufficient to pay the Redemption Price by 10:00 a.m., New York time, on the date
such Redemption Price is to be paid.

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

SECTION 3.4   NOTICE OF REDEMPTION.

     (a) In case the Company shall desire to exercise such right to redeem all
or, as the case may be, a portion of the Debentures in accordance with the right
reserved so to do, the Company shall, or shall cause the Trustee to upon receipt
of 45 days written notice from the Company (which notice shall, in the event of
a partial redemption, include a representation to the effect that such partial
redemption will not result in the delisting of the Trust Preferred Securities as
described in Section 3.3(b) above), give notice of such redemption to holders of
the Debentures to be redeemed by mailing, first class postage prepaid, a notice
of such redemption not less than 30 days and not more than 60 days before the
date fixed for redemption to such holders at their last addresses as they shall
appear upon the Debenture Register unless a shorter period is specified in the
Debentures to be redeemed. Any notice that is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the registered holder receives the notice. In any case, failure duly to give
such notice to the holder of any Debenture designated for redemption in whole or
in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Debentures. In the case of any
redemption of Debentures prior to the expiration of any restriction on such
redemption provided in the terms of such Debentures or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with any such restriction. Each such notice of redemption
shall specify the date fixed for redemption and the Redemption Price and shall
state that payment of the Redemption Price shall be made at the office or agency
of the Company or at the Corporate Trust Office, upon presentation and surrender
of such Debentures, that interest accrued to the date fixed for redemption shall
be paid as specified in said notice and that from and after said date interest
shall cease to accrue.  If less than all the Debentures are to be redeemed, the
notice to the holders of the Debentures shall specify the particular Debentures
to be redeemed.  If the Debentures are to be redeemed in part only, the notice
shall state the portion of the principal amount thereof to be redeemed and shall
state that on and after the redemption date, upon surrender of such Debenture, a
new Debenture or Debentures in principal amount equal to the unredeemed portion
thereof shall be issued.

     (b) If less than all the Debentures are to be redeemed, the Company shall
give the Trustee at least 45 days notice in advance of the date fixed for
redemption as to the aggregate principal amount of Debentures to be redeemed,
and thereupon the Trustee shall select, pro rata or by lot or in such other
manner as it shall deem appropriate and fair in its discretion, the portion or
portions

                                       17
<PAGE>

(equal to $10 or any integral multiple thereof) of the Debentures to be redeemed
and shall thereafter promptly notify the Company in writing of the numbers of
the Debentures to be redeemed, in whole or in part. The Company may, if and
whenever it shall so elect pursuant to the terms hereof, by delivery of
instructions signed on its behalf by its Chairman, its President or any Vice
President, instruct the Trustee or any paying agent to call all or any part of
the Debentures for redemption and to give notice of redemption in the manner set
forth in this Section 3.4, such notice to be in the name of the Company or its
own name as the Trustee or such paying agent may deem advisable. In any case in
which notice of redemption is to be given by the Trustee or any such paying
agent, the Company shall deliver or cause to be delivered to, or permit to
remain with, the Trustee or such paying agent, as the case may be, such
Debenture Register, transfer books or other records, or suitable copies or
extracts therefrom, sufficient to enable the Trustee or such paying agent to
give any notice by mail that may be required under the provisions of this
Section 3.4.

SECTION 3.5   PAYMENT UPON REDEMPTION.

     (a) If the giving of notice of redemption shall have been completed as
above provided, the Debentures or portions of Debentures to be redeemed
specified in such notice shall become due and payable on the date and at the
place stated in such notice at the applicable Redemption Price, and interest on
such Debentures or portions of Debentures shall cease to accrue on and after the
date fixed for redemption, unless the Company shall default in the payment of
such Redemption Price with respect to any such Debenture or portion thereof. On
presentation and surrender of such Debentures on or after the date fixed for
redemption at the place of payment specified in the notice, said Debentures
shall be paid and redeemed at the Redemption Price (but if the date fixed for
redemption is an interest payment date, the interest installment payable on such
date shall be payable to the registered holder at the close of business on the
applicable record date pursuant to Section 3.3).

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

SECTION 3.6   NO SINKING FUND.

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

                                   ARTICLE IV

                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 4.1  EXTENSION OF INTEREST PAYMENT PERIOD.

     The Company shall have the right, at any time and from time to time during
the term of the Debentures so long as no Event of Default has occurred and is
continuing, to defer payments of

                                       18
<PAGE>

interest by extending the interest payment period of such Debentures for a
period not exceeding 20 consecutive quarters (the "Extended Interest Payment
Period"), during which Extended Interest Payment Period no interest shall be due
and payable; provided that no Extended Interest Payment Period may extend beyond
the Maturity Date or end on a date other than an Interest Payment Date. To the
extent permitted by applicable law, interest, the payment of which has been
deferred because of the extension of the interest payment period pursuant to
this Section 4.1, shall bear interest thereon at the Coupon Rate compounded
quarterly for each quarter of the Extended Interest Payment Period ("Compounded
Interest"). At the end of the Extended Interest Payment Period, the Company
shall calculate (and deliver such calculation to the Trustee) and pay all
interest accrued and unpaid on the Debentures, including any Additional Interest
and Compounded Interest (together, "Deferred Interest") that shall be payable to
the holders of the Debentures in whose names the Debentures are registered in
the Debenture Register on the first record date after the end of the Extended
Interest Payment Period. Before the termination of any Extended Interest Payment
Period, the Company may further extend such period so long as no Event of
Default has occurred and is continuing, provided that such period together with
all such further extensions thereof shall not exceed 20 consecutive quarters, or
extend beyond the Maturity Date of the Debentures or end on a date other than an
Interest Payment Date. Upon the termination of any Extended Interest Payment
Period and upon the payment of all Deferred Interest then due, the Company may
commence a new Extended Interest Payment Period, subject to the foregoing
requirements. No interest shall be due and payable during an Extended Interest
Payment Period, except at the end thereof, but the Company may prepay at any
time all or any portion of the interest accrued during an Extended Interest
Payment Period.

SECTION 4.2   NOTICE OF EXTENSION.

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

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

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

                                       19
<PAGE>

SECTION 4.3   LIMITATION ON TRANSACTIONS.

     If (i) the Company shall exercise its right to defer payment of interest as
provided in Section 4.1; or (ii) there shall have occurred and be continuing any
Event of Default, then (a) the Company shall not, and will not permit any
Subsidiary to, declare or pay any dividend on, make any distributions with
respect to, or redeem, purchase, acquire or make a liquidation payment with
respect to, any of its capital stock (other than (1) as a result of a
reclassification of its capital stock for another class of its capital stock or
(2) declarations or payments of dividends or distributions on capital stock by a
Subsidiary of the Company to the Company); (b) the Company shall not, and will
not permit any Subsidiary to, make any payment of interest, principal or
premium, if any, or repay, repurchase or redeem any debt securities issued by
the Company which rank pari passu with or junior to the Debentures; (c) the
Company shall not make any guarantee payment with respect to any guarantee by
the Company of the debt securities of any Subsidiary of the Company if such
guarantee ranks pari passu with or junior to the Debentures; provided, however,
that notwithstanding the foregoing the Company may make payments pursuant to its
obligations under the Trust Preferred Securities Guarantee; and (d) the Company
shall not redeem, purchase or acquire less than all of the outstanding
Debentures or any of the Trust Preferred Securities.

                                   ARTICLE V

                      PARTICULAR COVENANTS OF THE COMPANY

SECTION 5.1  PAYMENT OF PRINCIPAL AND INTEREST.

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

SECTION 5.2   MAINTENANCE OF AGENCY.

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

                                       20
<PAGE>

provided herein, and the Company may from time to time rescind such designation
as the Company may deem desirable or expedient; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain any such office or agency in New York, New York or
Wilmington, Delaware for the purposes above mentioned.  The Company shall give
the Trustee prompt written notice of any such designation or rescission thereof.

SECTION 5.3   PAYING AGENTS.

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

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

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

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

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

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

     (c) Notwithstanding anything in this Section 5.3 to the contrary, (i) the
agreement to hold sums in trust as provided in this Section 5.3 is subject to
the provisions of Section 13.3 and 13.4; and (ii) the Company may at any time,
for the purpose of obtaining the satisfaction and discharge of this

                                       21
<PAGE>

Indenture or for any other purpose, pay, or direct any paying agent to pay, to
the Trustee all sums held in trust by the Company or such paying agent, such
sums to be held by the Trustee upon the same terms and conditions as those upon
which such sums were held by the Company or such paying agent; and, upon such
payment by any paying agent to the Trustee, such paying agent shall be released
from all further liability with respect to such money.

SECTION 5.4   APPOINTMENT TO FILL VACANCY IN OFFICE OF TRUSTEE.

     The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, shall appoint, in the manner provided in Section 9.10, a Trustee, so
that there shall at all times be a Trustee hereunder.

SECTION 5.5   COMPLIANCE WITH CONSOLIDATION PROVISIONS.

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

SECTION 5.6   LIMITATION ON TRANSACTIONS.

     If Debentures are issued to the Trust or a Trustee of the Trust in
connection with the issuance of Trust Securities by the Trust and (i) there
shall have occurred any event that would constitute an Event of Default; (ii)
the Company shall be in default with respect to any of its obligations under the
Trust Preferred Securities Guarantee relating to the Trust; or (iii) the Company
shall have given notice of its election to defer payments of interest on such
Debentures by extending the interest payment period as provided in this
Indenture and such period, or any extension thereof, shall be continuing, then
(a) the Company shall not, and will not permit any Subsidiary to, declare or pay
any dividend on, make any distributions with respect to, or redeem, purchase,
acquire or make a liquidation payment with respect to, any of its capital stock
(other than (1) as a result of a reclassification of its capital stock or (2)
declarations or payments of dividends or distributions on capital stock by a
Subsidiary of the Company to the Company); (b) the Company shall not, and will
not permit any Subsidiary to, make any payment of interest, principal or
premium, if any, or repay, repurchase or redeem any debt securities issued by
the Company which rank pari passu with or junior to the Debentures; (c) the
Company shall not make any guarantee payments with respect to any guarantee by
the Company of the debt securities of any Subsidiary of the Company if such
guarantee ranks pari passu with or junior in interest to the Debentures;
provided, however, that the Company may make payments pursuant to its
obligations under the Trust Preferred Securities Guarantee; and (d) the Company
shall not redeem, purchase or acquire less than all of the outstanding
Debentures or any of the Trust Preferred Securities.

SECTION 5.7   COVENANTS AS TO THE TRUST.

     For so long as such Trust Securities of the Trust remain outstanding, the
Company shall (i) maintain 100% direct or indirect ownership of the Common
Securities of the Trust; provided, however, that any permitted successor of the
Company under this Indenture may succeed to the

                                       22
<PAGE>

Company's ownership of the Common Securities; (ii) not voluntarily terminate,
wind up or liquidate the Trust, except upon prior approval of the Federal
Reserve if then so required under applicable capital guidelines, policies or
regulations of the Federal Reserve and use its reasonable efforts to cause the
Trust (a) to remain a business trust (and to avoid involuntary termination,
winding up or liquidation), except in connection with a distribution of
Debentures, the redemption of all of the Trust Securities of the Trust or
certain mergers, consolidations or amalgamations, each as permitted by the Trust
Agreement; and (b) to otherwise continue not to be treated as an association
taxable as a corporation or partnership for United States federal income tax
purposes; and (iii) use its reasonable efforts to cause each holder of Trust
Securities to be treated as owning an individual beneficial interest in the
Debentures. In connection with the distribution of the Debentures to the holders
of the Trust Preferred Securities issued by the Trust upon a Dissolution Event,
the Company shall use its best efforts to list such Debentures on the Nasdaq
National Market or on such exchange or self regulatory organization as the Trust
Preferred Securities are then listed.

SECTION 5.8   COVENANTS AS TO PURCHASES.

     Prior to December 31, 1999, the Company shall not purchase any Debentures,
in whole or in part, from the Trust.

SECTION 5.9   WAIVER OF USURY, STAY OR EXTENSION LAWS.

     The Company shall not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury, stay or
extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performances of this Indenture, and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been
enacted.

                                  ARTICLE VI

                     DEBENTURE HOLDERS' LISTS AND REPORTS
                        BY THE COMPANY AND THE TRUSTEE

SECTION 6.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF DEBENTURE
            HOLDERS.

     The Company shall furnish or cause to be furnished to the Trustee (a) on a
quarterly basis on each regular record date (as described in Section 2.5) a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the holders of the Debentures as of such regular record date,
provided that the Company shall not be obligated to furnish or cause to furnish
such list at any time that the list shall not differ in any respect from the
most recent list furnished to the Trustee by the Company (in the event the
Company fails to provide such list on a quarterly basis, the Trustee shall be
entitled to rely on the most recent list provided by the Company); and (b) at
such other times as the Trustee may request in writing within 30 days after the
receipt by the Company

                                       23
<PAGE>

of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished if the Trustee shall be the
Debenture Registrar.

SECTION 6.2   PRESERVATION OF INFORMATION COMMUNICATIONS WITH DEBENTURE
              HOLDERS.

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

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

     (c) Debenture holders may communicate as provided in Section 312(b) of the
Trust Indenture Act with other Debenture holders with respect to their rights
under this Indenture or under the Debentures.

SECTION 6.3   REPORTS BY THE COMPANY.

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

     (b) The Company covenants and agrees to transmit by mail, first class
postage prepaid, or the reputable over-night delivery service that provides for
evidence of receipt, to the Debenture holders, as their names and addresses
appear upon the Debenture Register, within 30 days after the filing thereof with
the Trustee, such summaries of any information, documents and reports required
to be filed by the Company pursuant to subsection (a) of this Section 6.3.

SECTION 6.4   REPORTS BY THE TRUSTEE.

     (a) On or before July 15 in each year in which any of the Debentures are
Outstanding, the Trustee shall transmit by mail, first class postage prepaid, to
the Debenture holders, as their names and addresses appear upon the Debenture
Register, a brief report dated as of the preceding May 15, if and to the extent
required under Section 313(a) of the Trust Indenture Act.

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

     (c) A copy of each such report shall, at the time of such transmission to
Debenture holders, be filed by the Trustee with the Company, with each stock
exchange or applicable self-regulatory organization upon which any Debentures
are listed (if so listed) and also with the

                                       24
<PAGE>

Commission. The Company agrees to notify the Trustee when any Debentures become
listed on any stock exchange applicable self-regulatory organization.

                                  ARTICLE VII

                 REMEDIES OF THE TRUSTEE AND DEBENTURE HOLDERS
                              ON EVENT OF DEFAULT

SECTION 7.1  EVENTS OF DEFAULT.

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

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

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

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

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

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

                                       25
<PAGE>

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

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

     (c) At any time after the principal of the Debentures shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Debentures then
Outstanding hereunder, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if: (i) the Company has
paid or deposited with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Debentures and the principal of any and
all Debentures that shall have become due otherwise than by acceleration (with
interest upon such principal, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the
rate per annum expressed in the Debentures to the date of such payment or
deposit) and the amount payable to the Trustee under Section 9.6; and (ii) any
and all Events of Default under this Indenture, other than the nonpayment of
principal on Debentures that shall not have become due by their terms, shall
have been remedied or waived as provided in Section 7.6. No such rescission and
annulment shall extend to or shall affect any subsequent default or impair any
right consequent thereon.

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

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

     (a) The Company covenants that (i) in case it shall default in the payment
of any installment of interest on any of the Debentures, and such default shall
have continued for a period of 90 Business Days; or (ii) in case it shall
default in the payment of the principal of any of the Debentures when the same
shall have become due and payable, whether upon maturity of the Debentures or
upon redemption or upon declaration or otherwise, then, upon demand of the
Trustee, the Company shall pay to the Trustee, for the benefit of the holders of
the Debentures, the whole

                                       26
<PAGE>

amount that then shall have been due and payable on all such Debentures for
principal or interest, or both, as the case may be, with interest upon the
overdue principal and (to the extent that payment of such interest is
enforceable under applicable law and, if the Debentures are held by the Trust or
a trustee of the Trust, without duplication of any other amounts paid by the
Trust or trustee in respect thereof) upon overdue installments of interest at
the rate per annum expressed in the Debentures; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, and the amount payable to the Trustee under Section 9.7.

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

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

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

                                       27
<PAGE>

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

 SECTION 7.3   APPLICATION OF MONEYS COLLECTED.

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

     FIRST:  To the payment of costs and expenses of collection and of all
amounts payable to the Trustee under Section 9.6;

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

     THIRD:  To the payment of the amounts then due and unpaid upon the
Debentures for principal and interest, in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of
any kind, according to the amounts due and payable on such Debentures for
principal and interest, respectively.

SECTION 7.4   LIMITATION ON SUITS.

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

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

                                       28
<PAGE>

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

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

     (a) Except as otherwise provided in Section 2.9, all powers and remedies
given by this Article VII to the Trustee or to the Debenture holders shall, to
the extent permitted by law, be deemed cumulative and not exclusive of any other
powers and remedies available to the Trustee or the holders of the Debentures,
by judicial proceedings or otherwise, to enforce the performance or observance
of the covenants and agreements contained in this Indenture or otherwise
established with respect to such Debentures.

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

SECTION 7.6   CONTROL BY DEBENTURE HOLDERS.

     The holders of a majority in aggregate principal amount of the Debentures
at the time Outstanding, determined in accordance with Section 10.4, shall have
the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee; provided, however, that such direction shall not be in conflict
with any rule of law or with this Indenture. Subject to the provisions of
Section 9.1, the Trustee shall have the right to decline to follow any such
direction if the Trustee in good faith shall, by a Responsible Officer or
Officers of the Trustee, determine that the proceeding so directed would involve
the Trustee in personal liability.  The holders of a majority in aggregate
principal amount of the Debentures at the time Outstanding affected thereby,
determined in accordance with Section 10.4, may on behalf of the holders of all
of the Debentures waive any past default in the performance of any of the
covenants contained herein and its consequences, except (i) a default in the
payment of the principal of or interest on, any of the Debentures as and when
the same shall become due by the terms of such Debentures otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal has been deposited with the
Trustee (in accordance with Section 7.1(c)); (ii) a default in the covenants
contained in Section 5.6; or (iii) in respect of a covenant or provision hereof
which cannot be

                                       29
<PAGE>

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

SECTION 7.7   UNDERTAKING TO PAY COSTS.

     All parties to this Indenture agree, and each holder of any Debentures by
such holder's acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 7.7 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Debentureholder, or group of Debenture
holders holding more than 10% in aggregate principal amount of the Outstanding
Debentures, or to any suit instituted by any Debentureholder for the enforcement
of the payment of the principal of or interest on the Debentures, on or after
the respective due dates expressed in such Debenture or established pursuant to
this Indenture.

SECTION 7.8   DIRECT ACTION; RIGHT OF SET-OFF.

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

                                       30
<PAGE>

                                 ARTICLE VIII

                     FORM OF DEBENTURE AND ORIGINAL ISSUE

SECTION 8.1  FORM OF DEBENTURE.

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

SECTION 8.2   ORIGINAL ISSUE OF DEBENTURES.

     Debentures in the aggregate principal amount of $5,285,000 may, upon
execution of this Indenture, be executed by the Company and delivered to the
Trustee for authentication. The Trustee shall thereupon authenticate and deliver
said Debentures to or upon the written order of the Company, signed by its
President, or any Vice President and its Treasurer or an Assistant Treasurer,
without any further action by the Company.

                                  ARTICLE IX

                            CONCERNING THE TRUSTEE

SECTION 9.1  CERTAIN DUTIES AND RESPONSIBILITIES OF THE TRUSTEE.

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

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

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

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

                                       31
<PAGE>

     covenants or obligations shall be read into this Indenture against the
     Trustee; and

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

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

          (iii) the Trustee shall not be liable with respect to any action taken
     or omitted to be taken by it in good faith in accordance with the direction
     of the holders of not less than a majority in principal amount of the
     Debentures at the time Outstanding relating to the time, method and place
     of conducting any proceeding for any remedy available to the Trustee, or
     exercising any trust or power conferred upon the Trustee under this
     Indenture with respect to the Debentures; and

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

SECTION 9.2   NOTICE OF DEFAULTS.

     Within five business days after actual knowledge by a Responsible Officer
of the Trustee of the occurrence of any default hereunder with respect to the
Debentures, the Trustee shall transmit by mail to all holders of the Debentures,
as their names and addresses appear in the Debenture Register, notice of such
default, unless such default shall have been cured or waived; provided, however,
that, except in the case default in the payment of the principal or interest
(including any Additional Interest) on any Debenture, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of the directors and/or Responsible
Officers of the Trustee determines in good faith that the withholding of such
notice is in the interests of the holders of such Debentures; and provided,
further, that in the case of

                                       32
<PAGE>

any default of the character specified in Section 7.1(a)(iii), no such notice to
holders of Debentures need be sent until at least 30 days after the occurrence
thereof. For the purposes of this Section 9.2, the term "default" means any
event which is, or after notice or lapse of time or both, would become, an Event
of Default with respect to the Debentures.

SECTION 9.3   CERTAIN RIGHTS OF TRUSTEE.

     Except as otherwise provided in Section 9.1:

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

     (b) Any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by a Board Resolution or an instrument signed in
the name of the Company by its President or any Vice President and by the
Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer
thereof (unless other evidence in respect thereof is specifically prescribed
herein);

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

     (d) The Trustee may consult with counsel and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted hereunder in
good faith and in reliance thereon;

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

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

     (g) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent,

                                       33
<PAGE>

order, approval, bond, security, or other papers or documents, unless requested
in writing so to do by the holders of not less than a majority in principal
amount of the Outstanding Debentures (determined as provided in Section 10.4);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand; and

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

SECTION 9.4   TRUSTEE NOT RESPONSIBLE FOR RECITALS, ETC.

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

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

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

SECTION 9.5   MAY HOLD DEBENTURES.

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

SECTION 9.6   MONEYS HELD IN TRUST.

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

                                       34
<PAGE>

SECTION 9.7   COMPENSATION AND REIMBURSEMENT.

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

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

SECTION 9.8   RELIANCE ON OFFICERS' CERTIFICATE.

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

SECTION 9.9   DISQUALIFICATION: CONFLICTING INTERESTS.

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

SECTION 9.10   CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

     There shall at all times be a Trustee with respect to the Debentures issued
hereunder which shall at all times be a corporation organized and doing business
under the laws of the United States

                                       35
<PAGE>

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

SECTION 9.11   RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

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

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

          (ii)  the Trustee shall cease to be eligible in accordance with the
     provisions of Section 9.10 and shall fail to resign after written request
     therefor by the Company or by any such Debentureholder; or the Trustee
     shall become incapable of acting, or shall be adjudged a bankrupt or
     insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of
     the Trustee; or

                                       36
<PAGE>

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

then, in any such case, the Company may remove the Trustee with respect to all
Debentures and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the Trustee so removed and one copy to the successor trustee,
or, subject to the provisions of Section 9.9, unless the Trustee's duty to
resign is stayed as provided herein, any Debentureholder who has been a bona
fide holder of a Debenture or Debentures for at least six months may, on behalf
of that holder and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor trustee.  Such court may thereupon after such notice, if any, as it
may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

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

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

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

SECTION 9.12   ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

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

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

                                       37
<PAGE>

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

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

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 9.9 and eligible under the provisions
of Section 9.10, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. In case any Debentures shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Debentures so authenticated with the same effect as if such
successor Trustee had itself authenticated such Debentures.

SECTION 9.14   PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY.

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

                                   ARTICLE X

                       CONCERNING THE DEBENTURE HOLDERS

SECTION 10.1  EVIDENCE OF ACTION BY HOLDERS.

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

     (b) If the Company shall solicit from the Debenture holders any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Company may, at its option, as

                                       38
<PAGE>

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

SECTION 10.2   PROOF OF EXECUTION BY DEBENTURE HOLDERS.

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

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

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

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

SECTION 10.3   WHO MAY BE DEEMED OWNERS.

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

SECTION 10.4   CERTAIN DEBENTURES OWNED BY COMPANY DISREGARDED.

     In determining whether the holders of the requisite aggregate principal
amount of Debentures have concurred in any direction, consent or waiver under
this Indenture, the Debentures that are owned by the Company or any other
obligor on the Debentures or by any Person directly or indirectly

                                       39
<PAGE>

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

SECTION 10.5   ACTIONS BINDING ON FUTURE DEBENTURE HOLDERS.

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

                                  ARTICLE XI

                            SUPPLEMENTAL INDENTURES

SECTION 11.1   SUPPLEMENTAL INDENTURES WITHOUT THE CONSENT OF DEBENTURE HOLDERS.

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

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

     (b)  to comply with Article X;

                                       40
<PAGE>

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

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

     (e) to add to, delete from, or revise the conditions, limitations, and
restrictions on the authorized amount, terms, or purposes of issue,
authentication, and delivery of Debentures, only as herein set forth;

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

     (g) to provide for the issuance of and establish the form and terms and
conditions of the Debentures, to establish the form of any certifications
required to be furnished pursuant to the terms of this Indenture or of the
Debentures, or to add to the rights of the holders of the Debentures; or

     (h) qualify or maintain the qualification of this Indenture under the Trust
Indenture Act.

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

SECTION 11.2   SUPPLEMENTAL INDENTURES WITH CONSENT OF DEBENTURE HOLDERS.

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

                                       41
<PAGE>

Debenture is required, such supplemental indenture shall not be effective until
each holder of the Trust Securities of the Trust shall have consented to such
supplemental indenture. It shall not be necessary for the consent of the
Debenture holders affected thereby under this Section 11.2 to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof.

SECTION 11.3   EFFECT OF SUPPLEMENTAL INDENTURES.

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

SECTION 11.4   DEBENTURES AFFECTED BY SUPPLEMENTAL INDENTURES.

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

SECTION 11.5   EXECUTION OF SUPPLEMENTAL INDENTURES.

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

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

                                       42
<PAGE>

Register. Any failure of the Trustee to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

                                  ARTICLE XII

                             SUCCESSOR CORPORATION

SECTION 12.1   COMPANY MAY CONSOLIDATE, ETC.

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

SECTION 12.2   SUCCESSOR CORPORATION SUBSTITUTED.

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

                                       43
<PAGE>

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

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

SECTION 12.3   EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE.

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

                                  ARTICLE XII

                          SATISFACTION AND DISCHARGE

SECTION 13.1   SATISFACTION AND DISCHARGE OF INDENTURE.

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

                                       44
<PAGE>

SECTION 13.2   DISCHARGE OF OBLIGATIONS.

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

SECTION 13.3   DEPOSITED MONEYS TO BE HELD IN TRUST.

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

SECTION 13.4   PAYMENT OF MONIES HELD BY PAYING AGENTS.

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

SECTION 13.5   REPAYMENT TO COMPANY.

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

                                       45
<PAGE>

                                  ARTICLE XIV

               IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
                                 AND DIRECTORS

SECTION 14.1  NO RECOURSE.

     No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of the Debentures, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer or
director, past, present or future as such, of the Company or of any predecessor
corporation, either directly or through the Company or any such predecessor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely
corporate obligations, and that no such personal liability whatever shall attach
to, or is or shall be incurred by, the incorporators, stockholders, officers or
directors as such, of the Company or of any predecessor corporation, or any of
them, because of the creation of the indebtedness hereby authorized, or under or
by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Debentures or implied therefrom; and that any and all
such personal liability of every name and nature, either at common law or in
equity or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, stockholder, officer or director as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any of the Debentures or implied therefrom, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issuance of such Debentures.

                                  ARTICLE XV

                           MISCELLANEOUS PROVISIONS

SECTION 15.1   EFFECT ON SUCCESSORS AND ASSIGNS.

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

SECTION 15.2   ACTIONS BY SUCCESSOR.

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

                                       46
<PAGE>

SECTION 15.3   SURRENDER OF COMPANY POWERS.

     The Company by instrument in writing executed by appropriate authority of
its Board of Directors and delivered to the Trustee may surrender any of the
powers reserved to the Company, and thereupon such power so surrendered shall
terminate both as to the Company, as the case may be, and as to any successor
corporation.

SECTION 15.4   NOTICES.

     Except as otherwise expressly provided herein any notice or demand that by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the holders of Debentures to or on the Company may be given
or served by being deposited first class postage prepaid in a post-office
letterbox addressed (until another address is filed in writing by the Company
with the Trustee), as follows: Paradigm Bancorporation, Inc., 2828 FM 1960,
Houston, Texas 77073, Attention: Peter E. Fisher.  Any notice, election, request
or demand by the Company or any Debentureholder to or upon the Trustee shall be
deemed to have been sufficiently given or made, for all purposes, if given or
made in writing at the Corporate Trust Office of the Trustee.

SECTION 15.5   GOVERNING LAW.

     This Indenture and each Debenture shall be deemed to be a contract made
under the internal laws of the State of Texas and for all purposes shall be
construed in accordance with the laws of said State.

SECTION 15.6   TREATMENT OF DEBENTURES AS DEBT.

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

SECTION 15.7   COMPLIANCE CERTIFICATES AND OPINIONS.

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

     (b) Each certificate or opinion of the Company provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant in this Indenture shall include (i) a statement that the
Person making such certificate or opinion has read such covenant or condition;
(ii) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are

                                       47
<PAGE>

based; (iii) a statement that, in the opinion of such Person, he has made such
examination or investigation as, in the opinion of such Person, is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (iv) a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with;
provided, however, that each such certificate shall comply with the provisions
of Section 314 of the Trust Indenture Act.

SECTION 15.8   PAYMENTS ON BUSINESS DAYS.

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

SECTION 15.9   CONFLICT WITH TRUST INDENTURE ACT.

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

SECTION 15.10   COUNTERPARTS.

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

SECTION 15.11   SEPARABILITY.

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

SECTION 15.12   ASSIGNMENT.

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

                                       48
<PAGE>

SECTION 15.13   ACKNOWLEDGMENT OF RIGHTS.

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

                                  ARTICLE XVI

                          SUBORDINATION OF DEBENTURES

SECTION 16.1   AGREEMENT TO SUBORDINATE.

     The Company covenants and agrees, and each holder of Debentures issued
hereunder by such holder's acceptance thereof likewise covenants and agrees,
that all Debentures shall be issued subject to the provisions of this Article
XVI; and each holder of a Debenture, whether upon original issue or upon
transfer or assignment thereof, accepts and agrees to be bound by such
provisions.  The payment by the Company of the principal of and interest on all
Debentures issued hereunder shall, to the extent and in the manner hereinafter
set forth, be subordinated and junior in right of payment to the prior payment
in full of all Senior Debt, Subordinated Debt and Additional Senior Obligations
(collectively, "Senior Indebtedness") to the extent provided herein, whether
outstanding at the date of this Indenture or thereafter incurred.  No provision
of this Article XVI shall prevent the occurrence of any default or Event of
Default hereunder.

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

     In the event and during the continuation of any default by the Company in
the payment of principal, premium, interest or any other payment due on any
Senior Indebtedness of the Company, or in the event that the maturity of any
Senior Indebtedness of the Company has been accelerated because of a default,
then, in either case, no payment shall be made by the Company with respect to
the principal (including redemption payments) of or interest on the Debentures.
In the event that, notwithstanding the foregoing, any payment shall be received
by the Trustee when such payment is prohibited by the preceding sentence of this
Section 16.2, such payment shall be held in trust for the benefit of, and shall
be paid over or delivered to, the holders of Senior Indebtedness or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any of

                                       49
<PAGE>

such Senior Indebtedness may have been issued, as their respective interests may
appear, but only to the extent that the holders of the Senior Indebtedness (or
their representative or representatives or a trustee) notify the Trustee in
writing within 90 days of such payment of the amounts then due and owing on the
Senior Indebtedness and only the amounts specified in such notice to the Trustee
shall be paid to the holders of Senior Indebtedness.

SECTION 16.3   LIQUIDATION; DISSOLUTION; BANKRUPTCY.

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

     (b) In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, prohibited by the foregoing, shall be received by the
Trustee before all Senior Indebtedness of the Company is paid in full, or
provision is made for such payment in money in accordance with its terms, such
payment or distribution shall be held in trust for the benefit of and shall be
paid over or delivered to the holders of such Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, and their respective interests may appear, as calculated
by the Company, for application to the payment of all Senior Indebtedness of the
Company, as the case may be, remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the benefit of
the holders of such Senior Indebtedness.

                                       50
<PAGE>

     (c) For purposes of this Article XVI, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided in this Article XVI with respect
to the Debentures to the payment of all Senior Indebtedness of the Company, as
the case may be, that may at the time be outstanding, provided that (i) such
Senior Indebtedness is assumed by the new corporation, if any, resulting from
any such reorganization or readjustment; and (ii) the rights of the holders of
such Senior Indebtedness are not, without the consent of such holders, altered
by such reorganization or readjustment. The consolidation of the Company with,
or the merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided for in Article XII shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 16.3 if such other corporation shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions stated in Article
XII.  Nothing in Section 16.2 or in this Section 16.3 shall apply to claims of,
or payments to, the Trustee under or pursuant to Section 9.7.

SECTION 16.4   SUBROGATION.

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

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

                                       51
<PAGE>

of the holders of such Senior Indebtedness in respect of cash, property or
securities of the Company, as the case may be, received upon the exercise of any
such remedy.

     (c) Upon any payment or distribution of assets of the Company referred to
in this Article XVI, the Trustee, subject to the provisions of Article IX, and
the holders of the Debentures shall be entitled to conclusively rely upon any
order or decree made by any court of competent jurisdiction in which such
dissolution, winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver, trustee in bankruptcy, liquidation trustee,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the holders of the Debentures, for the purposes of ascertaining
the Persons entitled to participate in such distribution, the holders of Senior
Indebtedness and other indebtedness of the Company, as the case may be, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article XVI.

SECTION 16.5   TRUSTEE TO EFFECTUATE SUBORDINATION.

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

SECTION 16.6   NOTICE BY THE COMPANY.

     (a) The Company shall give prompt written notice to a Responsible Officer
of the Trustee of any fact known to the Company that would prohibit the making
of any payment of monies to or by the Trustee in respect of the Debentures
pursuant to the provisions of this Article XVI. Notwithstanding the provisions
of this Article XVI or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts that would prohibit
the making of any payment of monies to or by the Trustee in respect of the
Debentures pursuant to the provisions of this Article XVI, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder or holders of Senior Indebtedness or from any
trustee therefor; and before the receipt of any such written notice, the
Trustee, subject to the provisions of Section 9.1, shall be entitled in all
respects to assume that no such facts exist; provided, however, that if the
Trustee shall not have received the notice provided for in this Section 16.6 at
least two Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the
payment of the principal of or interest on any Debenture), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purposes for which
they were received, and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to such date.

     (b) The Trustee, subject to the provisions of Section 9.1, shall be
entitled to conclusively rely on the delivery to it of a written notice by a
Person representing himself to be a holder of Senior Indebtedness of the Company
(or a trustee on behalf of such holder) to establish that such notice has been
given by a holder of such Senior Indebtedness or a trustee on behalf of any such
holder or

                                       52
<PAGE>

holders. In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of such
Senior Indebtedness to participate in any payment or distribution pursuant to
this Article XVI, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of such Senior
Indebtedness held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article XVI, and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

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

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

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

SECTION 16.8   SUBORDINATION MAY NOT BE IMPAIRED.

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

     (b) Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness of the Company may, at any time and from time
to time, without the consent of or notice to the Trustee or the holders of the
Debentures, without incurring responsibility to the holders of the Debentures
and without impairing or releasing the subordination provided in this Article
XVI or the obligations hereunder of the holders of the Debentures to the holders
of such Senior Indebtedness, do any one or more of the following:  (i) change
the manner, place or terms of payment or extend the time of payment of, or renew
or alter, such Senior Indebtedness, or otherwise amend or supplement in any
manner such Senior Indebtedness or any instrument evidencing the same or any
agreement under which such Senior Indebtedness is outstanding; (ii) sell,
exchange,

                                       53
<PAGE>

release or otherwise deal with any property pledged, mortgaged or
otherwise securing such Senior Indebtedness; (iii) release any Person liable in
any manner for the collection of such Senior Indebtedness; and (iv) exercise or
refrain from exercising any rights against the Company and any other Person.

                            [SIGNATURE PAGE FOLLOWS]

                                       54
<PAGE>

   IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed, all as of the day and year first above written.

                              PARADIGM BANCORPORATION, INC.

                              By:
                                  --------------------------
                              Name: Peter E. Fisher
                              Title: President

                              FIRST UNION TRUST COMPANY, NATIONAL
                              ASSOCIATION, AS TRUSTEE

                              By:
                                 --------------------------
                              Name: Edward L. Truitt, Jr.
                              Title: Vice President

                                       55
<PAGE>

STATE OF TEXAS      (S)
                    (S)
COUNTY OF HARRIS    (S)

     On the 1st day of December, 1999, before me personally came Peter E. Fisher
to me known, who, being by me duly sworn, did depose and say that he is the
President of Company, one of the corporations described in and which executed
the above instrument; that he knows the corporate seal of said corporation; that
the seal affixed to the said instrument is such corporation seal; that it was so
affixed by authority of the Board of Directors of said corporation, and that he
signed his name thereto by like authority.

                                    ----------------------------------
                                    Notary Public

(seal)                              My Commission expires: -----------

                                       56
<PAGE>

                                   EXHIBIT A

                          (FORM OF FACE OF DEBENTURE)

                         PARADIGM BANCORPORATION, INC.

                        10.375% SUBORDINATED DEBENTURE

                             DUE DECEMBER 1, 2029

No. -1-                                                               $5,285,000

     Paradigm Bancorporation, Inc., a Texas corporation (the "Company," which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to, Paradigm Capital Trust I or
registered assigns, the principal sum of five million two hundred and eighty-
five thousand ($5,285,000) on December 1, 2029 (the "Stated Maturity"), and to
pay interest on said principal sum from December 1, 1999, or from the most
recent interest payment date (each such date, an "Interest Payment Date") to
which interest has been paid or duly provided for, quarterly (subject to
deferral as set forth herein) in arrears on March 31, June 30, September 30 and
December 31 of each year commencing March 31, 2000, at the rate of 10.375% per
annum until the principal hereof shall have become due and payable, and on any
overdue principal and (without duplication and to the extent that payment of
such interest is enforceable under applicable law) on any overdue installment of
interest at the same rate per annum compounded quarterly. The amount of interest
payable on any Interest Payment Date shall be computed on the basis of a 360-day
year of twelve 30-day months. The amount of interest for any partial period
shall be computed on the basis of the number of days elapsed in a 360-day year
of twelve 30-day months. In the event that any date on which interest is payable
on this Debenture is not a business day, then payment of interest payable on
such date shall be made on the next succeeding day that is a business day (and
without any interest or other payment in respect of any such delay) except that,
if such business day is in the next succeeding calendar year, payment of such
interest will be made on the immediately preceding business day, in each case,
with the same force and effect as if made on such date. The interest installment
so payable, and punctually paid or duly provided for, on any Interest

                                      A-1
<PAGE>

Payment Date shall, as provided in the Indenture, be paid to the person in whose
name this Debenture (or one or more Predecessor Debentures, as defined in said
Indenture) is registered at the close of business on the regular record date for
such interest installment, which shall be the close of business on the business
day next preceding such Interest Payment Date unless otherwise provided in the
Indenture. Any such interest installment not punctually paid or duly provided
for shall forthwith cease to be payable to the registered holders on such
regular record date and may be paid to the Person in whose name this Debenture
(or one or more Predecessor Debentures) is registered at the close of business
on a special record date to be fixed by the Trustee for the payment of such
defaulted interest, notice whereof shall be given to the registered holders of
the Debentures not less than 10 days prior to such special record date, or may
be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Debentures may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. The principal of and the interest on this Debenture
shall be payable at the office or agency of the Trustee maintained for that
purpose in any coin or currency of the United States of America that at the time
of payment is legal tender for payment of public and private debts; provided,
however, that payment of interest may be made at the option of the Company by
check mailed to the registered holder at such address as shall appear in the
Debenture Register. Notwithstanding the foregoing, so long as the holder of this
Debenture is the Property Trustee, the payment of the principal of and interest
on this Debenture shall be made at such place and to such account as may be
designated by the Trustee.

     The Stated Maturity may be shortened at any time by the Company to any date
not earlier than December 31, 1999, subject to the Company having received prior
approval of the Federal Reserve if then required under applicable capital
guidelines, policies or regulations of the Federal Reserve.

     The indebtedness evidenced by this Debenture is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness, and this Debenture is issued subject to the
provisions of the Indenture with respect thereto. Each holder of this Debenture,
by accepting the same, (a) agrees to and shall be bound by such provisions; (b)
authorizes and directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
so provided; and (c) appoints the Trustee his or her attorney-in-fact for any
and all such purposes. Each holder hereof, by his or her acceptance hereof,
hereby waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Indebtedness,
whether now outstanding or hereafter incurred, and waives reliance by each such
holder upon said provisions.

     This Debenture shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

     The provisions of this Debenture are continued on the reverse side hereof
and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place.

                                      A-2
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed.

     Dated December 1, 1999.

                              PARADIGM BANCORPORATION, INC.

                              By:
                                  --------------------------
                              Name: Peter E. Fisher
                              Title: President

Attest:

By:
    ----------------------------
Name:     William H. Fagan, M.D.
Title:    Secretary

                                      A-3
<PAGE>

                     FORM OF CERTIFICATE OF AUTHENTICATION

                         CERTIFICATE OF AUTHENTICATION

     This is one of the Debentures described in the within-mentioned Indenture.

     Dated: December 1, 1999

First Union Trust Company,                    ---------------------------------
  National Association, as Trustee            or Authentication Agent

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

                                      A-4
<PAGE>

                         FORM OF REVERSE OF DEBENTURE

                        10.375% SUBORDINATED DEBENTURE

                                  (CONTINUED)

     This Debenture is one of the subordinated debentures of the Company (herein
sometimes referred to as the "Debentures"), specified in the Indenture, all
issued or to be issued under and pursuant to an Indenture dated as of December
1, 1999 (the "Indenture") duly executed and delivered between the Company and
First Union Trust Company, National Association, as Trustee (the "Trustee"), to
which Indenture reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the holders of the Debentures. The Debentures are
limited in aggregate principal amount as specified in the Indenture.

     Because of the occurrence and continuation of a Special Event, in certain
circumstances, this Debenture may become due and payable at the principal amount
together with any interest accrued thereon (the "Redemption Price").  The
Redemption Price shall be paid prior to 12:00 noon, Eastern Standard Time, time,
on the date of such redemption or at such earlier time as the Company
determines.  The Company shall have the right to redeem this Debenture at the
option of the Company, without premium or penalty, in whole or in part at any
time on or after December 31, 1999, (an "Optional Redemption"), or at any time
in certain circumstances upon the occurrence of a Special Event, at a Redemption
Price equal to 100% of the principal amount plus any accrued but unpaid
interest, to the date of such redemption.  Any redemption pursuant to this
paragraph shall be made upon not less than 30 days nor more than 60 days notice,
at the Redemption Price.  If the Debentures are only partially redeemed by the
Company pursuant to an Optional Redemption, the Debentures shall be redeemed pro
rata or by lot or by any other method utilized by the Trustee.

     In the event of redemption of this Debenture in part only, a new Debenture
or Debentures for the unredeemed portion hereof shall be issued in the name of
the holder hereof upon the cancellation hereof.  In case an Event of Default, as
defined in the Indenture, shall have occurred and be continuing, the principal
of all of the Debentures may be declared, and upon such declaration shall
become, due and payable, in the manner, with the effect and subject to the
conditions provided in the Indenture.

     The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the holders of not less than a majority in aggregate
principal amount of the Debentures at the time outstanding, as defined in the
Indenture, to execute supplemental indentures for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or of modifying in any manner the
rights of the holders of the Debentures; provided, however, that no such
supplemental indenture shall (i) extend the fixed maturity of the Debentures
except as provided in the Indenture, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon, without the
consent of the holder of each Debenture so affected; or (ii) reduce the
aforesaid percentage of Debentures, the

                                      A-5
<PAGE>

holders of which are required to consent to any such supplemental indenture,
without the consent of the holders of each Debenture then outstanding and
affected thereby. The Indenture also contains provisions permitting the holders
of a majority in aggregate principal amount of the Debentures at the time
outstanding, on behalf of all of the holders of the Debentures, to waive any
past default in the performance of any of the covenants contained in the
Indenture, or established pursuant to the Indenture, and its consequences,
except a default in the payment of the principal of or interest on any of the
Debentures. Any such consent or waiver by the registered holder of this
Debenture (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such holder and upon all future holders and owners of this
Debenture and of any Debenture issued in exchange herefore or in place hereof
(whether by registration of transfer or otherwise), irrespective of whether or
not any notation of such consent or waiver is made upon this Debenture.

     No reference herein to the Indenture and no provision of this Debenture or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal and interest on this Debenture
at the time and place and at the rate and in the money herein prescribed.

     Provided certain conditions are met, the Company shall have the right at
any time during the term of the Debentures and from time to time to extend the
interest payment period of such Debentures for up to 20 consecutive quarters
(each, an "Extended Interest Payment Period"), at the end of which period the
Company shall pay all interest then accrued and unpaid (together with interest
thereon at the rate specified for the Debentures to the extent that payment of
such interest is enforceable under applicable law).  Before the termination of
any such Extended Interest Payment Period, so long as no Event of Default shall
have occurred and be continuing, the Company may further extend such Extended
Interest Payment Period, provided that such Extended Interest Payment Period
together with all such further extensions thereof shall not exceed 20
consecutive quarters, extend beyond the Stated Maturity or end on a date other
than an Interest Payment Date.  At the termination of any such Extended Interest
Payment Period and upon the payment of all accrued and unpaid interest and any
additional amounts then due and subject to the foregoing conditions, the Company
may commence a new Extended Interest Payment Period.

     As provided in the Indenture and subject to certain limitations therein set
forth, this Debenture is transferable by the registered holder hereof on the
Debenture Register of the Company, upon surrender of this Debenture for
registration of transfer at the office or agency of the Trustee accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee duly executed by the registered holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Debentures of
authorized denominations and for the same aggregate principal amount shall be
issued to the designated transferee or transferees.  No service charge shall be
made for any such transfer, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation
thereto.

     Prior to due presentment for registration of transfer of this Debenture,
the Company, the Trustee, any paying agent and the Debenture Registrar may deem
and treat the registered holder hereof as the absolute owner hereof (whether or
not this Debenture shall be overdue and notwithstanding any notice of ownership
or writing hereon made by anyone other than the Debenture

                                      A-6
<PAGE>

Registrar) for the purpose of receiving payment of or on account of the
principal hereof and interest due hereon and for all other purposes, and neither
the Company nor the Trustee nor any paying agent nor any Debenture Registrar
shall be affected by any notice to the contrary.

     No recourse shall be had for the payment of the principal of or the
interest on this Debenture, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

     The Debentures are issuable only in registered form without coupons in
denominations of $10 and any integral multiple thereof.

     All terms used in this Debenture that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                                      A-7<PAGE>

                                                                    EXHIBIT 10.9

                           PARADIGM CAPITAL TRUST I

                     AMENDED AND RESTATED TRUST AGREEMENT

                                     among

                 PARADIGM BANCORPORATION, INC., as Depositor,

     FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION, as Property Trustee,

     FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION, as Delaware Trustee,

                                      and

                   THE ADMINISTRATIVE TRUSTEES NAMED HEREIN

                         Dated as of December 1, 1999
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                        Page
                                                                                        ----
<S>                                                                                    <C>
ARTICLE I

     DEFINED TERMS....................................................................   2
     Section 101.  Definitions........................................................   2

ARTICLE II

     ESTABLISHMENT OF THE TRUST.......................................................  10
     Section 201.  Name...............................................................  10
     Section 202.  Office of the Delaware Trustee; Principal Place of Business........  10
     Section 203.  Initial Contribution of Trust Property; Organizational Expenses....  10
     Section 204.  Issuance of the Trust Preferred Securities.........................  11
     Section 205.  Issuance of the Common Securities; Subscription and Purchase
                   of Debentures......................................................  11
     Section 206.  Declaration of Trust...............................................  11
     Section 207.  Authorization to Enter into Certain Transactions...................  11
     Section 208.  Assets of Trust....................................................  15
     Section 209.  Title to Trust Property............................................  15

ARTICLE III

     PAYMENT ACCOUNT..................................................................  15
     Section 301.  Payment Account....................................................  15

ARTICLE IV

     DISTRIBUTIONS; REDEMPTION........................................................  15
     Section 401.  Distributions......................................................  15
     Section 402.  Redemption.........................................................  16
     Section 403.  Subordination of Common Securities.................................  18
     Section 404.  Payment Procedures.................................................  19
     Section 405.  Tax Returns and Reports............................................  19
     Section 406.  Payment of Taxes, Duties, etc. of the Trust........................  20
     Section 407.  Payments Under Indenture...........................................  20

ARTICLE V

     TRUST SECURITIES CERTIFICATES....................................................  20
     Section 501.  Initial Ownership..................................................  20
     Section 502.  The Trust Securities Certificates..................................  20
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                   <C>
     Section 503.  Execution, Authentication and Delivery of Trust Securities
                   Certificates.......................................................  20
     Section 504.  Registration of Transfer and Exchange of Trust Preferred
                   Securities Certificates............................................  21
     Section 505.  Mutilated, Destroyed, Lost or Stolen Trust Securities
                   Certificates.......................................................  22
     Section 506.  Persons Deemed Securityholders.....................................  23
     Section 507.  Access to List of Securityholders' Names and Addresses.............  23
     Section 508.  Maintenance of Office or Agency....................................  23
     Section 509.  Appointment of Paying Agent........................................  24
     Section 510.  Ownership of Common Securities by Depositor........................  24
     Section 511.  Trust Securities Certificates......................................  24
     Section 512.  Reserved...........................................................  25
     Section 513.  Rights of Securityholders..........................................  25

ARTICLE VI

     ACTS OF SECURITYHOLDERS; MEETINGS; VOTING........................................  26
     Section 601.  Limitations on Voting Rights.......................................  26
     Section 602.  Notice of Meetings.................................................  27
     Section 603.  Meetings of Trust Preferred Securityholders........................  27
     Section 604.  Voting Rights......................................................  27
     Section 605.  Proxies, etc.......................................................  28
     Section 606.  Securityholder Action by Written Consent...........................  28
     Section 607.  Record Date for Voting and Other Purposes..........................  28
     Section 608.  Acts of Securityholders............................................  28
     Section 609.  Inspection of Records..............................................  29

ARTICLE VII

     REPRESENTATIONS AND WARRANTIES...................................................  30
     Section 701.  Representations and Warranties of the Bank and the Property
                   Trustee............................................................  30
     Section 702.  Representations and Warranties of the Delaware Bank and the
                   Delaware Trustee...................................................  31
     Section 703.  Representations and Warranties of Depositor........................  32

ARTICLE VIII

     TRUSTEES.........................................................................  33
     Section 801.  Certain Duties and Responsibilities................................  33
     Section 802.  Certain Notices....................................................  34
     Section 803.  Certain Rights of Property Trustee.................................  35
     Section 804.  Not Responsible for Recitals or Issuance of Securities.............  37
     Section 805.  May Hold Securities................................................  37
     Section 806.  Compensation; Indemnity; Fees......................................  37
</TABLE>

                                     -ii-
<PAGE>

<TABLE>
<S>                                                                                    <C>
     Section 807.  Corporate Property Trustee Required; Eligibility of Trustees.......  38
     Section 808.  Conflicting Interests..............................................  38
     Section 809.  Co-Trustees and Separate Trustee...................................  38
     Section 810.  Resignation and Removal; Appointment of Successor..................  40
     Section 811.  Acceptance of Appointment by Successor.............................  41
     Section 812.  Merger, Conversion, Consolidation or Succession to Business........  42
     Section 813.  Preferential Collection of Claims Against Depositor or Trust.......  42
     Section 814.  Reports by Property Trustee........................................  42
     Section 815.  Reports to the Property Trustee....................................  43
     Section 816.  Evidence of Compliance with Conditions Precedent...................  43
     Section 817.  Number of Trustees.................................................  43
     Section 818.  Delegation of Power................................................  44
     Section 819.  Voting.............................................................  44

ARTICLE IX

     TERMINATION, LIQUIDATION AND MERGER..............................................  44
     Section 901.  Termination Upon Expiration Date...................................  44
     Section 902.  Early Termination..................................................  44
     Section 903.  Termination........................................................  45
     Section 904.  Liquidation........................................................  45
     Section 905.  Mergers, Consolidations, Amalgamations or Replacements of
                   the Trust..........................................................  47

ARTICLE X

     MISCELLANEOUS PROVISIONS.........................................................  48
     Section 1001. Limitation of Rights of Securityholders............................  48
     Section 1002. Amendment..........................................................  48
     Section 1003. Separability.......................................................  49
     Section 1004. Governing Law......................................................  49
     Section 1005. Payments Due on Non-Business Day...................................  49
     Section 1006. Successors.........................................................  50
     Section 1007. Headings...........................................................  50
     Section 1008. Reports, Notices and Demands.......................................  50
     Section 1009. Agreement not to Petition..........................................  51
     Section 1010. Trust Indenture Act; Conflict with Trust Indenture Act.............  51
     Section 1011. Acceptance of Terms of Trust Agreement, Guarantee and Indenture....  51
</TABLE>

                                     -iii-
<PAGE>

EXHIBITS

     Exhibit A  Certificate of Trust
     Exhibit B  Form of Common Securities Certificate
     Exhibit C  Form of Expense Agreement
     Exhibit D  Form of Trust Preferred Securities Certificate
     Exhibit E  Form of Trust Preferred Securities Certificate of Authentication

                                     -iv-
<PAGE>

                             CROSS-REFERENCE TABLE

                                                              Section of Amended
Section of Trust Indenture                                      and Restated
Act of 1939, as amended                                         Trust Agreement
-----------------------                                       ------------------

310(a)(1)...............................................                  807
310(a)(2)...............................................                  807
310(a)(3)...............................................                  807
310(a)(4)...............................................            207(a)(ii)
310(b)..................................................                  808
311(a)..................................................                  813
311(b)..................................................                  813
312(a)..................................................                  507
312(b)..................................................                  507
312(c)..................................................                  507
313(a)..................................................                  814(a)
313(a)(4)...............................................                  814(b)
313(b)..................................................                  814(b)
313(c)..................................................                 1008
313(d)..................................................                  814(c)
314(a)..................................................                  815
314(b)..................................................       Not Applicable
314(c)(1)...............................................                  816
314(c)(2)...............................................                  816
314(c)(3)...............................................       Not Applicable
314(d)..................................................       Not Applicable
314(e)..................................................             101, 816
315(a)..................................................          801(a), 803(a)
315(b)..................................................            802, 1008
315(c)..................................................                  801(a)
315(d)..................................................             801, 803
316(a)(2)...............................................       Not Applicable
316(b)..................................................       Not Applicable
316(c)..................................................                  607
317(a)(1)...............................................       Not Applicable
317(a)(2)...............................................       Not Applicable
317(b)..................................................                  509
318(a...................................................                 1010

Note:  This Cross-Reference Table does not constitute part of this Agreement and
shall not affect the interpretation of any of its terms or provisions.

                                      -v-
<PAGE>

                     AMENDED AND RESTATED TRUST AGREEMENT

     AMENDED AND RESTATED TRUST AGREEMENT, dated as of December 1, 1999, among
(i) PARADIGM BANCORPORATION, INC., a Texas corporation (including any successors
or assigns, the "Depositor"), (ii) FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, a national banking association with its principal place of business
in the State of Delaware, as property trustee (the "Property Trustee" and, in
its separate corporate capacity and not in its capacity as Property Trustee, the
"Bank"), (iii) FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION, a national
banking association with its principal place of business in the State of
Delaware, as Delaware trustee (the "Delaware Trustee," and, in its separate
corporate capacity and not in its capacity as Delaware Trustee, the "Delaware
Bank") (iv) William H. Fagan, M.D., an individual, Peter E. Fisher, an
individual, and Jay W. Porter, Jr., an individual, each of whose address is c/o
Company (each an "Administrative Trustee" and collectively the "Administrative
Trustees") (the Property Trustee, the Delaware Trustee and the Administrative
Trustees referred to collectively as the "Trustees"), and (v) the several
Holders (as hereinafter defined).

                                   RECITALS

     WHEREAS, the Depositor, the Delaware Trustee, and William H. Fagan, M.D.,
Peter E. Fisher, and Jay W. Porter, Jr., each as an Administrative Trustee, have
heretofore duly declared and established a business trust pursuant to the
Delaware Business Trust Act by the entering into of that certain Trust
Agreement, dated as of November 24, 1999 (the "Original Trust Agreement"), and
by the execution and filing by the Delaware Trustee and the Administrative
Trustees with the Secretary of State of the State of Delaware of the Certificate
of Trust, filed on November 24, 1999, the form of which is attached as Exhibit
A; and

     WHEREAS, the Depositor, the Delaware Trustee, the Property Trustee and the
Administrative Trustees desire to amend and restate the Original Trust Agreement
in its entirety as set forth herein to provide for, among other things, (i) the
issuance of the Common Securities (as defined herein) by the Trust (as defined
herein) to the Depositor; (ii) the issuance and sale of the Trust Preferred
Securities as defined herein) by the Trust; (iii) the acquisition by the Trust
from the Depositor of all of the right, title and interest in the Debentures (as
defined herein); and (iv) the appointment of the Trustees;

     NOW THEREFORE, in consideration of the agreements and obligations set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each party, for the benefit of the
other parties and for the benefit of the Securityholders (as defined herein),
hereby amends and restates the Original Trust Agreement in its entirety and
agrees as follows:

                                      -1-
<PAGE>

                                   ARTICLE I

                                 DEFINED TERMS

     Section 101.  Definitions.
                   -----------

     For all purposes of this Trust Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

          (a)  the terms defined in this Article I have the meanings assigned to
     them in this Article I and include the plural as well as the singular;

          (b)  all other terms used herein that are defined in the Trust
     Indenture Act, either directly or by reference therein, have the meanings
     assigned to them therein;

          (c)  unless the context otherwise requires, any reference to an
     "Article" or a "Section" refers to an Article or a Section, as the case may
     be, of this Trust Agreement; and

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

     "Act" has the meaning specified in Section 608.

     "Additional Amount" means, with respect to Trust Securities of a given
Liquidation Amount and/or a given period, the amount of additional interest
accrued on interest in arrears and paid by the Depositor on a Like Amount of
Debentures for such period.

     "Additional Interest" has the meaning specified in Section 1.1 of the
Indenture.

     "Administrative Trustee" means each of William H. Fagan, M.D., Peter E.
Fisher, Jay W. Porter, Jr., solely in his capacity as Administrative Trustee of
the Trust formed and continued hereunder and not in his or her individual
capacity, or such Administrative Trustee's successor in interest in such
capacity, or any successor trustee appointed as herein provided.

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

                                      -2-
<PAGE>

     "Authenticating Agent" means an authenticating agent with respect to the
Trust Preferred Securities appointed by the Property Trustee pursuant to Section
503.

     "Bank" has the meaning specified in the Preamble to this Trust Agreement.

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

          (a)  the entry of a decree or order by a court having jurisdiction in
     the premises adjudging such Person a bankrupt or insolvent, or approving as
     properly filed a petition seeking liquidation or reorganization of or in
     respect of such Person under the United States Bankruptcy Code of 1978, as
     amended, or any other similar applicable federal or state law, and the
     continuance of any such decree or order unvacated and unstayed for a period
     of 90 days; or the commencement of an involuntary case under the United
     States Bankruptcy Code of 1978, as amended, in respect of such Person,
     which shall continue undismissed for a period of 90 days or entry of an
     order for relief in such case; or the entry of a decree or  order of a
     court having jurisdiction in the premises for the appointment on the ground
     of insolvency or bankruptcy of a receiver, custodian, liquidator, trustee
     or assignee in bankruptcy or insolvency of such Person or of its property,
     or for the winding up or liquidation of its affairs, and such decree or
     order shall have remained in force unvacated and unstayed for a period of
     90 days; or

          (b)  the institution by such Person of proceedings to be adjudicated a
     voluntary bankrupt, or the consent by such Person to the filing of a
     bankruptcy proceeding against it, or the filing by such Person of a
     petition or answer or consent seeking liquidation or reorganization under
     the United States Bankruptcy Code of 1978, as amended, or other similar
     applicable Federal or State law, or the consent by such Person to the
     filing of any such petition or to the appointment on the ground of
     insolvency or bankruptcy of a receiver or custodian or liquidator or
     trustee or assignee in bankruptcy or insolvency of such Person or of its
     property, or shall make a general assignment for the benefit of creditors.

     "Bankruptcy Laws" has the meaning specified in Section 1009.

     "Board Resolution" means a copy of a resolution certified by the Secretary
of the Depositor to have been duly adopted by the Depositor's Board of
Directors, or such committee of the Board of Directors or officers of the
Depositor to which authority to act on behalf of the Board of Directors has been
delegated, and to be in full force and effect on the date of such certification,
and delivered to the appropriate Trustee.

     "Business Day" means a day other than a Saturday or Sunday, a day on which
banking institutions in New York, New York or Wilmington, Delaware are
authorized or required by law, executive order or regulation to remain closed,
or a day on which the Property Trustee's Corporate Trust Office or the Corporate
Trust Office of the Debenture Trustee is closed for business.

                                      -3-
<PAGE>

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

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

     "Closing Date" means the date of execution and delivery of this Trust
Agreement.

     "Code" means the Internal Revenue Code of 1986, as amended.

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

     "Common Security" means an undivided beneficial interest in the assets of
the Trust, having a Liquidation Amount of $10 and having the rights provided
therefor in this Trust Agreement, including the right to receive Distributions
and a Liquidation Distribution as provided herein.

     "Common Securities Certificate" means a certificate evidencing ownership of
Common Securities, substantially in the form attached as Exhibit C.

     "Company" means Paradigm Bancorporation, Inc.

     "Corporate Trust Office" means the office at which, at any particular time,
the corporate trust business of the Property Trustee or the Debenture Trustee,
as the case may be, shall be principally administered, which office at the date
hereof, in each such case, is located at One Rodney Square, 920 King Street,
1s/t/ Floor, Wilmington, Delaware 19801, Attn: Corporate Trust Administration.

     "Debenture Event of Default" means an "Event of Default" as defined in
Section 7.1 of the Indenture.

     "Debenture Redemption Date" means, with respect to any Debentures to be
redeemed under the Indenture, the date fixed for redemption under the Indenture.

     "Debenture Tax Event" means a "Tax Event" as specified in Section 1.1 of
the Indenture.

     "Debenture Trustee" means First Union Trust Company, National Association,
a national banking association with its principal place of business in the State
of Delaware and any successor thereto, acting not in its individual capacity but
solely as trustee under the Indenture

     "Debentures" means the $5,285,000 aggregate principal amount of the
Depositor 10.375% Subordinated Debentures due 2029, issued pursuant to the
Indenture.

                                      -4-
<PAGE>

     "Definitive Trust Preferred Securities Certificates" means Trust Preferred
Securities Certificates issued in certified, fully registered form as provided
in Section 513.

     "Delaware Bank" has the meaning specified in the Preamble to this Trust
Agreement.

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

     "Delaware Trustee" means the commercial bank or trust company identified as
the "Delaware Trustee" in the Preamble to this Trust Agreement solely in its
capacity as Delaware Trustee of the Trust formed and continued hereunder and not
in its individual capacity, or its successor in interest in such capacity, or
any successor trustee appointed as herein provided.

     "Depositor" has the meaning specified in the Preamble to this Trust
Agreement.

     "Distribution Date" has the meaning specified in Section 401(a).

     "Distributions" means amounts payable in respect of the Trust Securities as
provided in Section 401.

     "Event of Default" means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

          (a)  the occurrence of a Debenture Event of Default; or

          (b)  default by the Trust in the payment of any Distribution when it
     becomes due and payable, and continuation of such default for a period of
     30 days; or

          (c)  default by the Trust in the payment of any Redemption Price of
     any Trust Security when it becomes due and payable; or

          (d)  default in the performance, or breach, in any material respect,
     of any covenant or warranty of the Trustees in this Trust Agreement (other
     than a covenant or warranty a default in the performance of which or the
     breach of which is dealt with in clause (b) or (c), above) and continuation
     of such default or breach for a period of 60 days after there has been
     given, by registered or certified mail, to the defaulting Trustee or
     Trustees by the Holders of at least 25% in aggregate liquidation preference
     of the Outstanding Trust Preferred Securities a written notice specifying
     such default or breach and requiring it to be remedied and stating that
     such notice is a "Notice of Default" hereunder; or

          (e)  the occurrence of a Bankruptcy Event with respect to the Property
     Trustee and the failure by the Depositor to appoint a successor Property
     Trustee within 60 days thereof.

                                      -5-
<PAGE>

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

     "Expense Agreement" means the Agreement as to Expenses and Liabilities
between the Depositor and the Trust, substantially in the form attached as
Exhibit C, as amended from time to time.

     "Expiration Date" has the meaning specified in Section 901.

     "Extended Interest Payment Period" has the meaning specified in Section 4.1
of the Indenture.

     "Guarantee" means the Trust Preferred Securities Guarantee Agreement
executed and delivered by the Depositor and First Union Trust Company, National
Association, as trustee, contemporaneously with the execution and delivery of
this Trust Agreement, for the benefit of the holders of the Trust Preferred
Securities, as amended from time to time.

     "Indenture" means the Indenture, dated as of December 1, 1999, between the
Depositor and the Debenture Trustee, as trustee, as amended or supplemented from
time to time.

     "Investment Company Act," means the Investment Company Act of 1940, as
amended, as in effect at the date of execution of this instrument.

     "Investment Company Event" means the receipt by the Trust and the Depositor
of an Opinion of Counsel, rendered by a law firm having a recognized national
tax and securities law practice, to the effect that, as a result of the
occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority (a "Change in 1940 Act Law"), the Trust is or
shall be considered an "investment company" that is required to be registered
under the Investment Company Act, which Change in 1940 Act Law becomes effective
on or after the date of original issuance of the Trust Preferred Securities
under this Trust Agreement; provided, however, that the Depositor or the Trust
shall have requested and received such an Opinion of Counsel with regard to such
matters within a reasonable period of time after the Depositor or the Trust
shall have become aware of the possible occurrence of any such event.

     "Lien" means any lien, pledge, charge, encumbrance, mortgage, deed of
trust, adverse ownership interest, hypothecation, assignment, security interest
or preference, priority or other security agreement or preferential arrangement
of any kind or nature whatsoever.

     "Like Amount" means (a) with respect to a redemption of Trust Securities,
Trust Securities having an aggregate Liquidation Amount equal to the aggregate
principal amount of Debentures to be contemporaneously redeemed in accordance
with the Indenture and the proceeds of which shall be used to pay the Redemption
Price of such Trust Securities; and (b) with respect to a distribution of
Debentures to Holders of Trust Securities in connection with a termination or
liquidation of the Trust, Debentures having a principal amount equal to the
Liquidation Amount of the Trust Securities

                                      -6-
<PAGE>

of the Holder to whom such Debentures are distributed. Each Debenture
distributed pursuant to clause (b) above shall carry with it accrued interest in
an amount equal to the accrued and unpaid interest then due on such Debentures.

     "Liquidation Amount" means the stated amount of $10 per Trust Security.

     "Liquidation Date" means the date on which Debentures are to be distributed
to Holders of Trust Securities in connection with a termination and liquidation
of the Trust pursuant to Section 904(a).

     "Liquidation Distribution" has the meaning specified in Section 904(d).

     "Officers' Certificate" means a certificate signed by the President or an
Executive Vice President and by the Treasurer or the Vice President--Finance or
the Secretary, of the Depositor, and delivered to the appropriate Trustee. One
of the officers signing an Officers' Certificate given pursuant to Section 816
shall be the principal executive, financial or accounting officer of the
Depositor. Any Officers' Certificate delivered with respect to compliance with a
condition or covenant provided for in this Trust Agreement shall include:

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

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

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

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

     "Opinion of Counsel" means an opinion in writing of independent, outside
legal counsel for the Trust, the Property Trustee, the Delaware Trustee or the
Depositor, who shall be reasonably acceptable to the Property Trustee.

     "Original Trust Agreement" has the meaning specified in the Recitals to
this Trust Agreement.

     "Outstanding", when used with respect to Trust Preferred Securities, means,
as of the date of determination, all Trust Preferred Securities theretofore
executed and delivered under this Trust Agreement, except:

                                      -7-
<PAGE>

          (a)  Trust Preferred Securities theretofore canceled by the Property
     Trustee or delivered to the Property Trustee for cancellation;

          (b)  Trust Preferred Securities for whose payment or redemption money
     in the necessary amount has been theretofore deposited with the Property
     Trustee or any Paying Agent for the Holders of such Trust Preferred
     Securities; provided that, if such Trust Preferred Securities are to be
     redeemed, notice of such redemption has been duly given pursuant to this
     Trust Agreement; and

          (c)  Trust Preferred Securities which have been paid or in exchange
     for or in lieu of which other Trust Preferred Securities have been executed
     and delivered pursuant to Sections 504, 505, 511 and 513; provided,
     however, that in determining whether the Holders of the requisite
     Liquidation Amount of the Outstanding Trust Preferred Securities have given
     any request, demand, authorization, direction, notice, consent or waiver
     hereunder, Trust Preferred Securities owned by the Depositor, any Trustee
     or any Affiliate of the Depositor or any Trustee shall be disregarded and
     deemed not to be Outstanding, except that (a) in determining whether any
     Trustee shall be protected in relying upon any such request, demand,
     authorization, direction, notice, consent or waiver, only Trust Preferred
     Securities that such Trustee knows to be so owned shall be so disregarded;
     and (b) the foregoing shall not apply at any time when all of the
     outstanding Trust Preferred Securities are owned by the Depositor, one or
     more of the Trustees and/or any such Affiliate. Trust Preferred Securities
     so owned which have been pledged in good faith may be regarded as
     Outstanding if the pledgee establishes to the satisfaction of the
     Administrative Trustees the pledgee's right so to the Depositor or any
     Affiliate of the Depositor.

     "Paying Agent" means any paying agent or co-paying agent appointed pursuant
to Section 509 and shall initially be the Bank.

     "Payment Account" means a segregated non-interest-bearing corporate trust
account maintained by the Property Trustee with the Bank in its trust department
for the benefit of the Securityholders in which all amounts paid in respect of
the Debentures shall be held and from which the Property Trustee shall make
payments to the Securityholders in accordance with Sections 401 and 402.

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

     "Property Trustee" means the commercial bank or trust company identified as
the "Property Trustee," in the Preamble to this Trust Agreement solely in its
capacity as Property Trustee of the Trust heretofore formed and continued
hereunder and not in its individual capacity, or its successor in interest in
such capacity, or any successor property trustee appointed as herein provided.

                                      -8-
<PAGE>

     "Redemption Date" means, with respect to any Trust Security to be redeemed,
the date fixed for such redemption by or pursuant to this Trust Agreement;
provided that each Debenture Redemption Date and the stated maturity of the
Debentures shall be a Redemption Date for a Like Amount of Trust Securities.

     "Redemption Price" means, with respect to any Trust Security, the
Liquidation Amount of such Trust Security, plus accumulated and unpaid
Distributions to the Redemption Date, plus the related amount of the premium, if
any, paid by the Depositor upon the concurrent redemption of a Like Amount of
Debentures, allocated on a pro rata basis (based on Liquidation Amounts) among
the Trust Securities.

     "Relevant Trustee" shall have the meaning specified in Section 810.

     "Securities Register" and "Securities Registrar" have the respective
meanings specified in Section 504.

     "Securityholder" or "Holder" means a Person in whose name a Trust Security
or Trust Securities is registered in the Securities Register; any such Person is
a beneficial owner within the meaning of the Delaware Business Trust Act.

     "Trust" means the Delaware business trust created and continued hereby and
identified on the cover page to this Trust Agreement.

     "Trust Agreement" means this Amended and Restated Trust Agreement, as the
same may be modified, amended or supplemented in accordance with the applicable
provisions hereof, including all exhibits hereto, including, for all purposes of
this Trust Agreement and any such modification, amendment or supplement, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this Trust Agreement and any such modification, amendment or supplement,
respectively.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, as
in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939, as amended, is
amended after such date, "Trust Indenture Act" means, to the extent required by
any such amendment, the Trust Indenture Act of 1939 as so amended.

     "Trust Preferred Securities Certificate" means a certificate evidencing
ownership of Trust Preferred Securities, substantially in the form attached as
Exhibit D.

     "Trust Preferred Security" means a preferred undivided beneficial interest
in the assets of the Trust, having a Liquidation Amount of $10 and having the
rights provided therefor in this Trust Agreement, including the right to receive
Distributions and a Liquidation Distribution as provided herein.

                                      -9-
<PAGE>

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

     "Trust Security" means any one of the Common Securities or the Trust
Preferred Securities.

     "Trust Securities Certificate" means any one of the Common Securities
Certificates or the Trust Preferred Securities Certificates.

     "Trustees" means, collectively, the Property Trustee, the Delaware Trustee
and the Administrative Trustees.

                                  ARTICLE II

                          ESTABLISHMENT OF THE TRUST

     Section 201.  Name.
                   ----

     The Trust continued hereby shall be known as "Paradigm Capital Trust I," as
such name may be modified from time to time by the Administrative Trustees
following written notice to the Holders of Trust Securities and the other
Trustees, in which name the Trustees may engage in the transactions contemplated
hereby, make and execute contracts and other instruments on behalf of the Trust
and sue and be sued.

     Section 202.  Office of the Delaware Trustee; Principal Place of Business.
                   -----------------------------------------------------------

     The address of the Delaware Trustee in the State of Delaware is c/o First
Union Trust Company, National Association, One Rodney Square, 920 King Street,
1/st/ Floor, Wilmington, Delaware 19801, Attn: Corporate Trust Administration,
or such other address in the State of Delaware as the Delaware Trustee may
designate by written notice to the Securityholders and the Depositor. The
principal executive office of the Trust is c/o Paradigm Bancorporation, Inc.,
2828 FM 1960, Houston, Texas, 77073.

     Section 203.  Initial Contribution of Trust Property; Organizational
                   ------------------------------------------------------
                   Expenses.
                   --------

     The Trustees acknowledge receipt in trust from the Depositor in connection
with the Original Trust Agreement of the sum of $10, which constituted the
initial Trust Property. The Depositor shall pay organizational expenses of the
Trust as they arise or shall, upon request of any Trustee, promptly reimburse
such Trustee for any such expenses paid by such Trustee. The Depositor shall
make no claim upon the Trust Property for the payment of such expenses.

                                      -10-
<PAGE>

     Section 204.  Issuance of the Trust Preferred Securities.
                   ------------------------------------------

     Contemporaneously with the execution and delivery of this Trust Agreement,
an Administrative Trustee, on behalf of the Trust, shall execute in accordance
with Section 502 and deliver Trust Preferred Securities Certificates, registered
in the name of Woodforest National Bank in an aggregate amount of 512,500 Trust
Preferred Securities having an aggregate Liquidation Amount of $5,125,000
against  receipt of the aggregate purchase price of such Trust Preferred
Securities of $5,125,000, which amount such Administrative Trustee shall
promptly deliver to the Property Trustee.

     Section 205.  Issuance of the Common Securities; Subscription and Purchase
                   ------------------------------------------------------------
                   of Debentures.
                   -------------

     Contemporaneously with the execution and delivery of this Trust Agreement,
an Administrative Trustee, on behalf of the Trust, shall execute in accordance
with Section 502 and deliver to the Depositor, Common Securities Certificates,
registered in the name of the Depositor, in an aggregate amount of Common
Securities having an aggregate Liquidation Amount of $160,000 against payment by
the Depositor of such amount. Contemporaneously therewith, an Administrative
Trustee, on behalf of the Trust, shall subscribe to and purchase from the
Depositor Debentures, registered in the name of the Property Trustee on behalf
of the Trust and having an aggregate principal amount equal to $5,285,000, and,
in satisfaction of the purchase price for such Debentures, the Property Trustee,
on behalf of the Trust, shall deliver to the Depositor the sum of $5,285,000.

     Section 206.  Declaration of Trust.
                   --------------------

     The exclusive purposes and functions of the Trust are (a) to issue and sell
Trust Securities and use the proceeds from such sale to acquire the Debentures;
and (b) to engage in those activities necessary, advisable or incidental
thereto. The Depositor hereby appoints the Trustees as trustees of the Trust, to
have all the rights, powers and duties to the extent set forth herein, and the
Trustees hereby accept such appointment.  The Property Trustee hereby declares
that it shall hold the Trust Property in trust upon and subject to the
conditions set forth herein for the benefit of the Securityholders.  The
Administrative Trustees shall have all rights, powers and duties set forth
herein and in accordance with applicable law with respect to accomplishing the
purposes of the Trust. The Delaware Trustee shall not be entitled to exercise
any powers, nor shall the Delaware Trustee have any of the duties and
responsibilities, of the Property Trustee or the Administrative Trustees set
forth herein. The Delaware Trustee shall be one of the Trustees of the Trust for
the sole and limited purpose of fulfilling the requirements of Section 3807 of
the Delaware Business Trust Act.

     Section 207.  Authorization to Enter into Certain Transactions.
                   ------------------------------------------------

              (a)  The Trustees shall conduct the affairs of the Trust in
     accordance with the terms of this Trust Agreement. Subject to the
     limitations set forth in paragraph (b) of this Section 207 and Article
     VIII, and in accordance with the following provisions (i) and (ii), the
     Administrative Trustees shall have the authority to enter into all
     transactions and

                                      -11-
<PAGE>

     agreements determined by the Administrative Trustees to be appropriate in
     exercising the authority, express or implied, otherwise granted to the
     Administrative Trustees under this Trust Agreement, and to perform all acts
     in furtherance thereof, including without limitation, the acts set forth in
     the following provision (i) and the Property Trustee shall have the
     authority to act, each as set forth below:

          (i)  As among the Trustees, each Administrative Trustee, acting singly
               or jointly, shall have the power and authority to act on behalf
               of the Trust with respect to the following matters:

               (A)  the issuance and sale of the Trust Securities;

               (B)  to cause the Trust to enter into, and to execute, deliver
                    and perform on behalf of the Trust, the Expense Agreement
                    and such other agreements or documents as may be necessary
                    or desirable in connection with the purposes and function of
                    the Trust;

               (C)  assisting in the registration of the Trust Preferred
                    Securities under state securities or blue sky laws, if
                    required, and the qualification of this Trust Agreement as a
                    trust indenture under the Trust Indenture Act, if required;

               (D)  the sending of notices (other than notices of default) and
                    other information regarding the Trust Securities and the
                    Debentures to the Securityholders in accordance with this
                    Trust Agreement;

               (E)  the appointment of a Paying Agent, authenticating agent and
                    Securities Registrar in accordance with this Trust
                    Agreement;

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

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

               (H)  the taking of any action incidental to the foregoing as the
                    Administrative Trustees may from time to time determine is

                                      -12-
<PAGE>

                    necessary or advisable to give effect to the terms of this
                    Trust Agreement for the benefit of the Securityholders
                    (without consideration of the effect of any such action on
                    any particular Securityholder).

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

               (A)  the establishment of the Payment Account;

               (B)  the receipt of the Debentures;

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

               (D)  the distribution of amounts owed to the Securityholders in
                    respect of the Trust Securities in accordance with the terms
                    of this Trust Agreement;

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

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

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

               (H)  to the extent provided in this Trust Agreement, the winding
                    up of the affairs of and liquidation of the Trust;

               (I)  after an Event of Default, the taking of any action
                    incidental to the foregoing as the Property Trustee may from
                    time to time determine is necessary or advisable to give
                    effect to the terms of this Trust Agreement and protect and
                    conserve the Trust Property for the benefit of the
                    Securityholders (without consideration of the effect of any
                    such action on any particular Securityholder);

               (J)  registering transfers of the Trust Securities in accordance
                    with this Trust Agreement; and

                                      -13-
<PAGE>

               (K)  except as otherwise provided in this Section 207(a)(ii), the
                    Property Trustee shall have none of the duties, liabilities,
                    powers or the authority of the Administrative Trustees set
                    forth in Section 207(a)(i).

          (b)  So long as this Trust Agreement remains in effect, the Trust (or
     the Trustees acting on behalf of the Trust) shall not undertake any
     business, activities or transaction except as expressly provided herein or
     contemplated hereby. In particular, the Trustees shall not (i) acquire any
     investments or engage in any activities not authorized by this Trust
     Agreement; (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off
     or otherwise dispose of any of the Trust Property or interests therein,
     including to Securityholders, except as expressly provided herein; (iii)
     take any action that would cause the Trust to fail or cease to qualify as a
     "grantor trust" for United States federal income tax purposes; (iv) incur
     any indebtedness for borrowed money or issue any other debt; or (v) take or
     consent to any action that would result in the placement of a Lien on any
     of the Trust Property. The Administrative Trustees shall defend all claims
     and demands of all Persons at any time claiming any Lien on any of the
     Trust Property adverse to the interest of the Trust or the Securityholders
     in their capacity as Securityholders.

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

               (i)  the determination of the states 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 which must be taken by or on behalf of the Trust, and advise
          the Trustees of actions they must take on behalf of the Trust, and
          prepare for execution and filing any documents to be executed and
          filed by the Trust or on behalf of the Trust, as the Depositor deems
          necessary or advisable in order to comply with the applicable laws of
          any such States;

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

          (d)  Notwithstanding anything herein to the contrary, the Trustees are
     authorized and directed to conduct the affairs of the Trust and to operate
     the Trust so that the Trust shall not be deemed to be an "investment
     company" required to be registered under the Investment Company Act, shall
     be classified as a "grantor trust" and not as an association taxable as a
     corporation for United States federal income tax purposes and so that the
     Debentures shall be treated as indebtedness of the Depositor for United
     States federal income tax purposes. In this connection, subject to Section
     1002, the Depositor and the Trustees are authorized to take any action, not
     inconsistent with applicable law or this Trust Agreement, that each of

                                      -14-
<PAGE>

     the Depositor and the Trustees determines in their discretion to be
     necessary or desirable for such purposes.

     Section 208.  Assets of Trust.
                   ---------------

     The assets of the Trust shall consist of the Trust Property.

     Section 209.  Title to Trust Property.
                   -----------------------

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

                                  ARTICLE III

                                PAYMENT ACCOUNT

     Section 301.  Payment Account.
                   ---------------

              (a)  On or prior to the Closing Date, the Property Trustee shall
     establish the Payment Account. The Property Trustee and any agent of the
     Property Trustee shall have exclusive control and sole right of withdrawal
     with respect to the Payment Account for the purpose of making deposits and
     withdrawals from the Payment Account in accordance with this Trust
     Agreement. All monies and other property deposited or held from time to
     time in the Payment Account shall be held by the Property Trustee in the
     Payment Account for the exclusive benefit of the Securityholders and for
     distribution as herein provided, including (and subject to) any priority of
     payments provided for herein.

              (b)  The Property Trustee shall deposit in the Payment Account,
     promptly upon receipt, all payments of principal of or interest on, and any
     other payments or proceeds with respect to, the Debentures. Amounts held in
     the Payment Account shall not be invested by the Property Trustee pending
     distribution thereof.

                                  ARTICLE IV

                           DISTRIBUTIONS; REDEMPTION

     Section 401.  Distributions.
                   -------------

              (a)  Distributions on the Trust Securities shall be cumulative,
     and shall accumulate whether or not there are funds of the Trust available
     for the payment of Distributions. Distributions shall accumulate from
     December 1, 1999, and, except during any Extended Interest Payment Period
     with respect to the Debentures, shall be payable quarterly in arrears

                                      -15-
<PAGE>

     on the last calendar day of March, June, September and December of each
     year, commencing on March 31, 2000. If any date on which a Distribution is
     otherwise payable on the Trust Securities is not a Business Day, then the
     payment of such Distribution shall be made on the next succeeding day that
     is a Business Day (and without any interest or other payment in respect of
     any such delay) except that, if such Business Day is in the next succeeding
     calendar year, such payment shall be made on the immediately preceding
     Business Day (and without any reduction of interest or any other payment in
     respect of any such acceleration), in each case with the same force and
     effect as if made on such date (each date on which distributions are
     payable in accordance with this Section 401(a), a "Distribution Date").

              (b)  The Trust Securities represent undivided beneficial interests
     in the Trust Property, and, as a practical matter, the Distributions on the
     Trust Securities shall be payable at a rate of 10.375% per annum of the
     Liquidation Amount of the Trust Securities. The amount of Distributions
     payable for any full period shall be computed on the basis of a 360-day
     year of twelve 30-day months. The amount of Distributions for any partial
     period shall be computed on the basis of the number of days elapsed in a
     360-day year of twelve 30-day months. During any Extended Interest Payment
     Period with respect to the Debentures, Distributions on the Trust Preferred
     Securities shall be deferred for a period equal to the Extended Interest
     Payment Period. The amount of Distributions payable for any period shall
     include the Additional Amounts, if any.

              (c)  Distributions on the Trust Securities shall be made by the
     Property Trustee solely from the Payment Account and shall be payable on
     each Distribution Date only to the extent that the Trust has funds on hand
     and immediately available by 12:30 p.m. on each Distribution Date in the
     Payment Account for the payment of such Distributions.

              (d)  Distributions on the Trust Securities with respect to a
     Distribution Date shall be payable to the record holders thereof as they
     appear on the Securities Register for the Trust Securities on the relevant
     record date, which shall be the Business Day immediately prior to the
     relevant Distribution Date.

     Section 402.  Redemption.
                   ----------

              (a)  On each Debenture Redemption Date and on the maturity of the
     Debentures, the Trust shall be required to redeem a Like Amount of Trust
     Securities at the Redemption Price.

              (b)  Notice of redemption shall be given by the Property Trustee
     by first-class mail, postage prepaid, mailed not less than 30 nor more than
     60 days prior to the Redemption Date to each Holder of Trust Securities to
     be redeemed, at such Holder's address appearing in the Securities Register.
     The Property Trustee shall have no responsibility for the accuracy of any
     CUSIP number contained in such notice. All notices of redemption shall
     state:

                   (i)   the Redemption Date;

                                      -16-
<PAGE>

                   (ii)  the Redemption Price;

                   (iii) the CUSIP number;

                   (iv)  if less than all the Outstanding Trust Securities are
                         to be redeemed, the identification and the aggregate
                         Liquidation Amount of the particular Trust Securities
                         to be redeemed;

                   (v)   that, on the Redemption Date, the Redemption Price
                         shall become due and payable upon each such Trust
                         Security to be redeemed and that Distributions thereon
                         shall cease to accumulate on and after said date,
                         except as provided in Section 402(d); and

                   (vi)  the place or places at which Trust Securities are to be
                         surrendered for the payment of the Redemption Price;
                         and

              (c)  The Trust Securities redeemed on each Redemption Date shall
     be redeemed at the Redemption Price with the proceeds from the
     contemporaneous redemption of Debentures. Redemptions of the Trust
     Securities shall be made and the Redemption Price shall be payable on each
     Redemption Date only to the extent that the Trust has immediately available
     funds then on hand and available in the Payment Account for the payment of
     such Redemption Price.

              (d)  If the Property Trustee gives a notice of redemption in
     respect of any Trust Preferred Securities, then, by 12:00 noon, New York
     City time, on the Redemption Date, subject to Section 402(c), the Property
     Trustee, subject to Section 402(c), shall deposit with the Paying Agent
     funds sufficient to pay the applicable Redemption Price and shall give the
     Paying Agent irrevocable instructions and authority to pay the Redemption
     Price to the record holders thereof upon surrender of their Trust Preferred
     Securities Certificates. Notwithstanding the foregoing, Distributions
     payable on or prior to the Redemption Date for any Trust Securities called
     for redemption shall be payable to the Holders of such Trust Securities as
     they appear on the Register for the Trust Securities on the relevant record
     dates for the related Distribution Dates. If notice of redemption shall
     have been given and funds deposited as required, then upon the date of such
     deposit, (i) all rights of Securityholders holding Trust Securities so
     called for redemption shall cease, except the right of such Securityholders
     to receive the Redemption Price, (ii) such Securities shall cease to be
     Outstanding, and (iii) any Trust Securities Certificates will be deemed to
     represent Debentures having a principal amount equal to the stated
     Liquidation Amount of the Trust Securities represented thereby and bearing
     accrued and unpaid interest in an amount equal to the accumulated and
     unpaid Distributions on such Trust Securities until such certificates are
     presented to the Securities Registrar for transfer or reissuance. In the
     event that any date on which any Redemption Price is payable is not a
     Business Day, then payment of the Redemption Price payable on such date
     shall be made on the next succeeding day that is a Business Day (and
     without any interest or other payment in respect of any such delay) except

                                      -17-
<PAGE>

     that, if such Business Day is in the next succeeding calendar year, such
     payment shall be made on the immediately preceding Business Day (and
     without any reduction of interest or any other payment in respect of any
     such acceleration), in each case with the same force and effect as if made
     on such date. In the event that payment of the Redemption Price in respect
     of any Trust Securities called for redemption is improperly withheld or
     refused and not paid either by the Trust or by the Depositor pursuant to
     the Guarantee, Distributions on such Trust Securities shall continue to
     accumulate, at the then applicable rate, from the Redemption Date
     originally established by the Trust for such Trust Securities to the date
     such Redemption Price is actually paid, in which case the actual payment
     date shall be the date fixed for redemption for purposes of calculating the
     Redemption Price.

              (e)  Payment of the Redemption Price on the Trust Securities shall
     be made to the record holders thereof as they appear on the Securities
     Register for the Trust Securities on the relevant record date, which shall
     be the date 15 days prior to the relevant Redemption Date.

              (f)  Subject to Section 403(a), if less than all the Outstanding
     Trust Securities are to be redeemed on a Redemption Date, then the
     aggregate Liquidation Amount of Trust Securities to be redeemed shall be
     allocated on a pro rata basis (based on Liquidation Amounts) among the
     Common Securities and the Trust Preferred Securities. The particular Trust
     Preferred Securities to be redeemed shall be selected not more than 60 days
     prior to the Redemption Date by the Property Trustee from the outstanding
     Trust Preferred Securities not previously called for redemption, by such
     method (including, without limitation, by lot) as the Property Trustee
     shall deem fair and appropriate and which may provide for the selection for
     redemption of portions (equal to $10 or an integral multiple of $10 in
     excess thereof) of the Liquidation Amount of Trust Preferred Securities of
     a denomination larger than $10. The Property Trustee shall promptly notify
     the Securities Registrar in writing of the Trust Preferred Securities
     selected for redemption and, in the case of any Trust Preferred Securities
     selected for partial redemption, the Liquidation Amount thereof to be
     redeemed. For all purposes of this Trust Agreement, unless the context
     otherwise requires, all provisions relating to the redemption of Trust
     Preferred Securities shall relate, in the case of any Trust Preferred
     Securities redeemed or to be redeemed only in part, to the portion of the
     Liquidation Amount of Trust Preferred Securities which has been or is to be
     redeemed.

     Section 403.  Subordination of Common Securities.
                   ----------------------------------

              (a)  Payment of Distributions (including Additional Amounts, if
     applicable) on, and the Redemption Price of, the Trust Securities, as
     applicable, shall be made, subject to Section 402(f), pro rata among the
     Common Securities and the Trust Preferred Securities based on the
     Liquidation Amount of the Trust Securities; provided, however, that if on
     any Distribution Date or Redemption Date any Event of Default resulting
     from a Debenture Event of Default shall have occurred and be continuing, no
     payment of any Distribution (including Additional Amounts, if applicable)
     on, or Redemption Price of, any Common Security, and no other payment on
     account of the redemption, liquidation or other acquisition

                                      -18-
<PAGE>

     of Common Securities, shall be made unless payment in full in cash of all
     accumulated and unpaid Distributions (including Additional Amounts, if
     applicable) on all Outstanding Trust Preferred Securities for all
     Distribution periods terminating on or prior thereto, or in the case of
     payment of the Redemption Price the full amount of such Redemption Price on
     all Outstanding Trust Preferred Securities then called for redemption,
     shall have been made or provided for, and all funds immediately available
     to the Property Trustee shall first be applied to the payment in full in
     cash of all Distributions (including Additional Amounts, if applicable) on,
     or the Redemption Price of, Trust Preferred Securities then due and
     payable.

              (b)  In the case of the occurrence of any Event of Default
     resulting from a Debenture Event of Default, the record holder of Common
     Securities, the Depositor, shall be deemed to have waived any right to act
     with respect to any such Event of Default under this Trust Agreement until
     the effect of all such Events of Default with respect to the Trust
     Preferred Securities shall have been cured, waived or otherwise eliminated.
     Until any such Event of Default under this Trust Agreement with respect to
     the Trust Preferred Securities shall have been so cured, waived or
     otherwise eliminated, the Property Trustee shall act solely on behalf of
     the record holders of the Trust Preferred Securities and not the record
     holder of the Common Securities, and only the Holders of the Trust
     Preferred Securities shall have the right to direct the Property Trustee to
     act on their behalf.

     Section 404.  Payment Procedures.
                   ------------------

     Payments of Distributions (including Additional Amounts, if applicable) in
respect of the Trust Preferred Securities shall be made by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Securities Register or, if the Trust Preferred Securities are held by a Clearing
Agency, such  Distributions shall be made to the Clearing Agency in immediately
available funds, which will credit the relevant accounts on the applicable
Distribution Dates. Payments in respect of the Common Securities shall be made
in such manner as shall be mutually agreed between the Property Trustee and the
Common Securityholder.

     Section 405.  Tax Returns and Reports.
                   -----------------------

     The Administrative Trustees shall prepare (or cause to be prepared), at the
Depositor's expense, and file all United States federal, state and local tax and
information returns and reports required to be filed by or in respect of the
Trust. In this regard, the Administrative Trustees shall (a) prepare and file
(or cause to be prepared and filed) the appropriate Internal Revenue Service
forms required to be filed in respect of the Trust in each taxable year of the
Trust; and (b) prepare and furnish (or cause to be prepared and furnished) to
each Securityholder the appropriate Internal Revenue Service forms required to
be furnished to such Securityholder or the information required to be provided
on such form. The Administrative Trustees shall provide the Depositor with a
copy of all such returns and reports promptly after such filing or furnishing.
The Property Trustee shall comply with United States federal withholding and
backup withholding tax laws and information reporting requirements with respect
to any payments to Securityholders under the Trust Securities.

                                      -19-
<PAGE>

     Section 406.  Payment of Taxes, Duties, etc. of the Trust.
                   -------------------------------------------

     Upon receipt under the Debentures of Additional Interest (as defined in
Section 1.1 of the Indenture), the Property Trustee, at the direction of an
Administrative Trustee or the Depositor, shall promptly pay any taxes, duties or
governmental charges of whatsoever nature (other than withholding taxes) imposed
on the Trust by the United States or any other taxing authority.

     Section 407.  Payments Under Indenture.
                   ------------------------

     Any amount payable hereunder to any record holder of Trust Preferred
Securities shall be reduced by the amount of any corresponding payment such
Holder has directly received under the Indenture pursuant to Section 513(b) or
(c) hereof.

                                   ARTICLE V

                         TRUST SECURITIES CERTIFICATES

     Section 501.  Initial Ownership.
                   -----------------

     Upon the creation of the Trust and the contribution by the Depositor
pursuant to Section 203 and until the issuance of the Trust Securities, and at
any time during which no Trust Securities are outstanding, the Depositor shall
be the sole beneficial owner of the Trust.

     Section 502.  The Trust Securities Certificates.
                   ---------------------------------

     The Trust Preferred Securities Certificates shall be issued in minimum
denominations of $10 Liquidation Amount and integral multiples of $10 in excess
thereof, and the Common Securities Certificates shall be issued in denominations
of $10 Liquidation Amount and integral multiples thereof. The Trust Securities
Certificates shall be executed on behalf of the Trust by manual or facsimile
signature of at least one Administrative Trustee. Trust Securities Certificates
bearing the manual or facsimile signatures of individuals who were, at the time
when such signatures shall have been affixed, authorized to sign on behalf of
the Trust, shall be validly issued and entitled to the benefits of this Trust
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the delivery of such Trust Securities
Certificates or did not hold such offices at the date of delivery of such Trust
Securities Certificates. A transferee of a Trust Securities Certificate shall
become a Securityholder, and shall be entitled to the rights and subject to the
obligations of a Securityholder hereunder, upon due registration of such Trust
Securities Certificate in such transferee's name pursuant to Sections 504, 511
and 513.

     Section 503.  Execution, Authentication and Delivery of Trust Securities
                   ----------------------------------------------------------
                   Certificates.
                   ------------

              (a)  On the Closing Date and on any date on which the underwriters
     exercise their over-allotment option, as applicable (an "Option Closing
     Date"), the Administrative Trustees

                                      -20-
<PAGE>

     shall cause Trust Securities Certificates, in an aggregate Liquidation
     Amount as provided in Sections 204 and 205, to be executed on behalf of the
     Trust by at least one of the Administrative Trustees and delivered to or
     upon the written order of the Depositor, signed by its Chief Executive
     Officer, President, any Vice President or its Treasurer without further
     corporate action by the Depositor, in authorized denominations.

              (b)  A Trust Securities Certificate shall not be valid until
     authenticated by the manual signature of an authorized signatory of the
     Property Trustee. The signature shall be conclusive evidence that the Trust
     Securities Certificate has been authenticated under this Trust Agreement.
     Each Trust Security Certificate shall be dated the date of its
     authentication.

     Upon the written order of the Trust signed by one of the Administrative
Trustees, the Property Trustee shall authenticate and make available for
delivery the Trust Securities Certificates.

     The Property Trustee may appoint an Authenticating Agent acceptable to the
Trust to authenticate the Trust Securities. An Authenticating Agent may
authenticate the Trust Securities whenever the Property Trustee may do so.  Each
reference in this Trust Agreement 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 Company or the Trust.

     Section 504.  Registration of Transfer and Exchange of Trust Preferred
                   --------------------------------------------------------
                   Securities Certificates.
                   -----------------------

              (a)  The Depositor shall keep or cause to be kept, at the office
     or agency maintained pursuant to Section 508, a register or registers for
     the purpose of registering Trust Securities Certificates and transfers and
     exchanges of Trust Securities Certificates (herein referred to as the
     "Securities Register") in which the registrar designated by the Depositor
     (the "Securities Registrar"), subject to such reasonable regulations as it
     may prescribe, shall provide for the registration of Trust Preferred
     Securities Certificates and Common Securities Certificates (subject to
     Section 510 in the case of the Common Securities Certificates) and
     registration of transfers and exchanges of referred Securities Certificates
     as herein provided. The Property Trustee shall be the initial Securities
     Registrar.

              (b)  Upon surrender for registration of transfer of any Trust
     Preferred Securities Certificate at the office or agency maintained
     pursuant to Section 508, the Administrative Trustees or any one of them
     shall execute and deliver, in the name of the designated transferee or
     transferees, one or more new Trust Preferred Securities Certificates in
     authorized denominations of a like aggregate Liquidation Amount dated the
     date of execution by such Administrative Trustee or Trustees. The
     Securities Registrar shall not be required to register the transfer of any
     Trust Preferred Securities that have been called for redemption. At the
     option of a record holder, Trust Preferred Securities Certificates may be
     exchanged for other Trust Preferred Securities Certificates in authorized
     denominations of the same class and of a like aggregate Liquidation Amount
     upon surrender of the Trust

                                      -21-
<PAGE>

     Preferred Securities Certificates to be exchanged at the office or agency
     maintained pursuant to Section 508.

              (c)  Every Trust Preferred Securities Certificate presented or
     surrendered for registration of transfer or exchange shall be accompanied
     by a written instrument of transfer in form satisfactory to the Property
     Trustee and the Securities Registrar duly executed by the Holder or his
     attorney duly authorized in writing. Each Trust Preferred Securities
     Certificate surrendered for registration of transfer or exchange shall be
     canceled and subsequently disposed of by the Property Trustee in accordance
     with its customary practice. The Trust shall not be required to (i) issue,
     register the transfer of, or exchange any Trust Preferred Securities during
     a period beginning at the opening of business 15 calendar days before the
     date of mailing of a notice of redemption of any Trust Preferred Securities
     called for redemption and ending at the close of business on the day of
     such mailing; or (ii) register the transfer of or exchange any Trust
     Preferred Securities so selected for redemption, in whole or in part,
     except the unredeemed portion of any such Trust Preferred Securities being
     redeemed in part.

              (d)  No service charge shall be made for any registration of
     transfer or exchange of Trust Preferred Securities Certificates but the
     Securities Registrar may require payment of a sum sufficient to cover any
     tax or governmental charge that may be imposed in connection with any
     transfer or exchange of Trust Preferred Securities Certificates.

              (e)  Trust Preferred Securities may only be transferred, in whole
     or in part, in accordance with the terms and conditions set forth in this
     Trust Agreement. Any transfer or purported transfer of any Trust Preferred
     Security not made in accordance with this Trust Agreement shall be null and
     void. A Trust Preferred Security may be transferred, in whole or in part,
     to a Person who takes delivery in the form of another Trust Preferred
     Security as provided in Section 504(a).

     Section 505. Mutilated, Destroyed, Lost or Stolen Trust Securities
                  -----------------------------------------------------
                  Certificates.
                  ------------

     If (a) any mutilated Trust Securities certificate shall be surrendered to
the Securities Registrar, or if the Securities Registrar shall receive evidence
to its satisfaction of the destruction, loss or theft of any Trust Securities
Certificate; and (b) there shall be delivered to the Securities Registrar and
the Administrative Trustees such security or indemnity as may be required by
them to save each of them harmless, then in the absence of notice that such
Trust Securities Certificate shall have been acquired by a bona fide purchaser,
the Administrative Trustees, or any one of them, on behalf of the Trust shall
execute and make available for delivery, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Trust Securities Certificate, a new Trust
Securities Certificate of like class, tenor and denomination. In connection with
the issuance of any new Trust Securities Certificate under this Section 505, the
Administrative Trustees or the Securities Registrar 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 Trust Securities Certificate issued
pursuant to this Section 505 shall constitute conclusive evidence of an
undivided beneficial interest in the assets

                                      -22-
<PAGE>

of the Trust, as if originally issued, whether or not the lost, stolen or
destroyed Trust Securities Certificate shall be found at any time.

     Section 506.  Persons Deemed Securityholders.
                   ------------------------------

     The Trustees, the Paying Agent and the Securities Registrar shall treat the
Person in whose name any Trust Securities Certificate shall be registered in the
Securities Register as the owner of such Trust Securities Certificate for the
purpose of receiving Distributions and for all other purposes whatsoever, and
neither the Trustees nor the Securities Registrar shall be bound by any notice
to the contrary.

     Section 507.  Access to List of Securityholders' Names and Addresses.
                   ------------------------------------------------------

     At any time when the Property Trustee is not also acting as the Securities
Registrar, the Administrative Trustees or the Depositor shall furnish or cause
to be furnished to the Property Trustee (a) within five Business Days of each
record date, a list, in such form as the Property Trustee may reasonably
require, of the names and addresses of the Securityholders as of the most recent
record date; and (b) promptly after receipt by any Administrative Trustee or the
Depositor of a request therefor from the Property Trustee in order to enable the
Property Trustee to discharge its obligations under this Trust Agreement, in
each case to the extent such information is in the possession or control of the
Administrative Trustees or the Depositor and is not identical to a previously
supplied list or has not otherwise been received by the Property Trustee in its
capacity as Securities Registrar. The rights of Securityholders to communicate
with other Securityholders with respect to their rights under this Trust
Agreement or under the Trust Securities, and the corresponding rights of the
Trustee shall be as provided in the Trust Indenture Act. Each Holder, by
receiving and holding a Trust Securities Certificate, and each owner shall be
deemed to have agreed not to hold the Depositor, the Property Trustee or the
Administrative Trustees accountable by reason of the disclosure of its name and
address, regardless of the source from which such information was derived.

     Section 508.  Maintenance of Office or Agency.
                   -------------------------------

     The Administrative Trustees shall maintain, or cause to be maintained, in
The City of New York, New York or Wilmington, Delaware or other location
designated by the Administrative Trustees, an office or offices or agency or
agencies where Trust Preferred Securities Certificates may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Trustees in respect of the Trust Securities Certificates may be served.  The
Administrative Trustees initially designate the Corporate Trust Office of the
Property Trustee, First Union Trust Company, National Association, as the
principal corporate trust office for such purposes. The Administrative Trustees
shall give prompt written notice to the Depositor and to the Securityholders of
any change in the location of the Securities Register or any such office or
agency.

                                      -23-
<PAGE>

     Section 509.  Appointment of Paying Agent.
                   ---------------------------

     The Paying Agent shall make Distributions to Securityholders from the
Payment Account and shall report the amounts of such Distributions to the
Property Trustee and the Administrative Trustees. Any Paying Agent shall have
the revocable power to withdraw funds from the Payment Account for the purpose
of making the Distributions referred to above.  The Administrative Trustees may
revoke such power and remove the Paying Agent if such Trustees determine in
their sole discretion that the Paying Agent shall have failed to perform its
obligations under this Trust Agreement in any material respect. The Paying Agent
shall initially be the Property Trustee, and any co-paying agent chosen by the
Property Trustee, and acceptable to the Administrative Trustees and the
Depositor. Any Person acting as Paying Agent  shall be permitted to resign as
Paying Agent upon 30 days written notice to the Administrative Trustees, the
Property Trustee and the Depositor. In the event that the Property Trustee shall
no longer be the Paying Agent or a successor Paying Agent shall resign or its
authority to act be revoked, the Administrative Trustees shall appoint a
successor that is acceptable to the Property Trustee and the Depositor to act as
Paying Agent (which shall be a bank or trust company). The Administrative
Trustees shall cause such successor Paying Agent or any additional Paying Agent
appointed by the Administrative Trustees to 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 shall hold all sums, if any, held by it for payment
to the Securityholders in trust for the benefit of the Securityholders entitled
thereto until such sums shall be paid to such Securityholders. 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. The provisions of Sections 801, 803 and 806 shall apply to
the Property Trustee also in its role as Paying Agent, for so long as the
Property Trustee shall act as Paying Agent and, to the extent applicable, to any
other paying agent appointed hereunder. Any reference in this Agreement to the
Paying Agent shall include any co-paying agent unless the context requires
otherwise.

     Section 510.  Ownership of Common Securities by Depositor.
                   -------------------------------------------

     On the Closing Date, the Depositor shall acquire and retain beneficial and
record ownership of the Common Securities. To the fullest extent permitted by
law, any attempted transfer of the Common Securities (other than a transfer in
connection with a merger or consolidation of the Depositor into another
corporation pursuant to Section 12.1 of the Indenture) shall be void.  The
Administrative Trustees shall cause each Common Securities Certificate issued to
the Depositor to contain a legend stating "THIS CERTIFICATE IS NOT
TRANSFERABLE."

     Section 511.  Trust Securities Certificates.
                   -----------------------------

              (a)  A single Trust Preferred Securities Certificate representing
     the Trust Preferred Securities shall be issued to Woodforest National Bank
     in the form of a definitive Trust Preferred Securities Certificate.

                                      -24-
<PAGE>

              (b)  A single Common Securities Certificate representing the
     Common Securities shall be issued to the Depositor in the form of a
     definitive Common Securities Certificate.

     Section 512.  Reserved.
                   --------

     Section 513.  Rights of Securityholders.
                   -------------------------

              (a)  The legal title to the Trust Property is vested exclusively
     in the Property Trustee (in its capacity as such) in accordance with
     Section 209, and the Securityholders shall not have any right or title
     therein other than the undivided beneficial interest in the assets of the
     Trust conferred by their Trust Securities and they shall have no right to
     call for any partition or division of property, profits or rights of the
     Trust except as described below. The Trust Securities shall be personal
     property giving only the rights specifically set forth therein and in this
     Trust Agreement. The Trust Securities shall have no preemptive or similar
     rights. When issued and delivered to Holders of the Trust Preferred
     Securities against payment of the purchase price therefor, the Trust
     Preferred Securities shall be fully paid and nonassessable interests in the
     Trust. The Holders of the Trust Preferred Securities, in their capacities
     as such, 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.

              (b)  For so long as any Trust Preferred Securities remain
     Outstanding, if, upon a Debenture Event of Default, the Debenture Trustee
     fails or the holders of not less than 25% in principal amount of the
     outstanding Debentures fail to declare the principal of all of the
     Debentures to be immediately due and payable, the Holders of at least 25%
     in Liquidation Amount of the Trust Preferred Securities then Outstanding
     shall have such right by a notice in writing to the Depositor and the
     Debenture Trustee; and upon any such declaration such principal amount of
     and the accrued interest on all of the Debentures shall become immediately
     due and payable, provided that the payment of principal and interest on
     such Debentures shall remain subordinated to the extent provided in the
     Indenture.

               (c)  For so long as any Trust Preferred Securities remain
     outstanding, upon a Debenture Event of Default arising from the failure to
     pay interest or principal on the Debentures, the Holders of any Trust
     Preferred Securities then Outstanding shall, to the fullest extent
     permitted by law, have the right to directly institute proceedings for
     enforcement of payment to such Holders of principal of or interest on the
     Debentures having a principal amount equal to the Liquidation Amount of the
     Trust Preferred Securities of such Holders.

                                      -25-
<PAGE>

                                  ARTICLE VI

                   ACTS OF SECURITYHOLDERS; MEETINGS; VOTING

     Section 601.  Limitations on Voting Rights.
                   ----------------------------

              (a)  Except as provided in this Section 601, in Sections 810 and
     1002 and in the Indenture and as otherwise required by law, no record
     Holder of Trust Preferred Securities shall have any right to vote or in any
     manner otherwise control the administration, operation and management of
     the Trust or the obligations of the parties hereto, nor shall anything
     herein set forth, or contained in the terms of the Trust Securities
     Certificates, be construed so as to constitute the Securityholders from
     time to time as partners or members of an association.

              (b)  So long as any Debentures are held by the Property Trustee on
     behalf of the Trust, the Trustees shall not (i) direct the time, method and
     place of conducting any proceeding for any remedy available to the
     Debenture Trustee, or executing any trust or power conferred on the
     Debenture Trustee with respect to such Debentures; (ii) waive any past
     default which is waivable under Article VII 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, without, in each case, obtaining the
     prior approval of the Holders of at least a majority in Liquidation Amount
     of all Outstanding Trust Preferred Securities; provided, however, that
     where a consent under the Indenture would require the consent of each
     Holder of Outstanding Debentures affected thereby, no such consent shall be
     given by the Property Trustee without the prior written consent of each
     holder of Trust Preferred Securities. The Trustees shall not revoke any
     action previously authorized or approved by a vote of the Holders of the
     Outstanding Trust Preferred Securities, except by a subsequent vote of the
     Holders of the Outstanding Trust Preferred Securities. The Property Trustee
     shall notify each Holder of the Outstanding Trust Preferred Securities of
     any notice of default received from the Debenture Trustee with respect to
     the Debentures. In addition to obtaining the foregoing approvals of the
     Holders of the Trust Preferred Securities, prior to taking any of the
     foregoing actions, the Trustees shall, at the expense of the Depositor,
     obtain an Opinion of Counsel experienced in such matters to the effect that
     the Trust shall continue to be classified as a grantor trust and not as an
     association taxable as a corporation for United States federal income tax
     purposes on account of such action.

              (c)  If any proposed amendment to the Trust Agreement provides
     for, or the Trustees otherwise propose to effect, (i) any action that would
     adversely affect in any material respect the powers, preferences or special
     rights of the Trust Preferred Securities, whether by way of amendment to
     the Trust Agreement or otherwise; or (ii) the dissolution, winding-up or
     termination of the Trust, other than pursuant to the terms of this Trust
     Agreement, then the Holders of Outstanding Trust Preferred Securities as a
     class shall be

                                      -26-
<PAGE>

     entitled to vote on such amendment or proposal and such amendment or
     proposal shall not be effective except with the approval of the Holders of
     at least a majority in Liquidation Amount of the Outstanding Trust
     Preferred Securities. No amendment to this Trust Agreement may be made if,
     as a result of such amendment, the Trust would cease to be classified as a
     grantor trust or would be classified as an association taxable as a
     corporation for United States federal income tax purposes.

     Section 602.  Notice of Meetings.
                   ------------------

     Notice of all meetings of the Trust Preferred Securityholders, stating the
time, place and purpose of the meeting, shall be given by the Property Trustee
pursuant to Section 1008 to each Trust Preferred Securityholder of record, at
his registered address, at least 15 days and not more than 90 days before the
meeting. At any such meeting, any business properly before the meeting may be so
considered whether or not stated in the notice of the meeting. Any adjourned
meeting may be held as adjourned without further notice.

     Section 603.  Meetings of Trust Preferred Securityholders.
                   -------------------------------------------

              (a)  No annual meeting of Securityholders is required to be held.
     The Administrative Trustees, however, shall call a meeting of
     Securityholders to vote on any matter in respect of which Trust Preferred
     Securityholders are entitled to vote upon the written request of the Trust
     Preferred Securityholders of 25% of the Outstanding Trust Preferred
     Securities (based upon their aggregate Liquidation Amount) and the
     Administrative Trustees or the Property Trustee may, at any time in their
     discretion, call a meeting of Trust Preferred Securityholders to vote on
     any matters as to which the Trust Preferred Securityholders are entitled to
     vote.

              (b)  Trust Preferred Securityholders of record of 50% of the
     Outstanding Trust Preferred Securities (based upon their aggregate
     Liquidation Amount), present in person or by proxy, shall constitute a
     quorum at any meeting of Securityholders.

              (c)  If a quorum is present at a meeting, an affirmative vote by
     the Trust Preferred Securityholders of record present, in person or by
     proxy, holding more than a majority of the Trust Preferred Securities
     (based upon their aggregate Liquidation Amount) held by the Trust Preferred
     Securityholders of record present, either in person or by proxy, at such
     meeting shall constitute the action of the Securityholders, unless this
     Trust Agreement requires a greater number of affirmative votes.

     Section 604.  Voting Rights.
                   -------------

     Securityholders shall be entitled to one vote for each $10 of Liquidation
Amount represented by their Trust Securities (with any fractional multiple
thereof rounded up or down as the case may be to the closest integral multiple)
in respect of any matter as to which such Securityholders are entitled to vote.

                                      -27-
<PAGE>

     Section 605.  Proxies, etc.
                   ------------

     At any meeting of Securityholders, any Securityholder entitled to vote
thereat may vote by proxy, provided that no proxy, shall be voted at any meeting
unless it shall have been placed on file with the Administrative Trustees, or
with such other officer or agent of the Trust as the Administrative Trustees may
direct, for verification prior to the time at which such vote shall be taken.
Only Holders of record shall be entitled to vote. When Trust Securities are held
jointly by several persons, any one of them may vote at any meeting in person or
by proxy in respect of such Trust Securities, but if more than one of them shall
be present at such meeting in person or by proxy, and such joint owners or their
proxies so present disagree as to any vote to be cast, such vote shall not be
received in respect of such Trust Securities. A proxy purporting to be executed
by or on behalf of a Securityholder shall be deemed valid unless challenged at
or prior to its exercise, and, the burden of proving invalidity shall rest on
the challenger. No proxy shall be valid more than three years after its date of
execution.

     Section 606.  Securityholder Action by Written Consent.
                   ----------------------------------------

     Any action which may be taken by Securityholders at a meeting may be taken
without a meeting if Securityholders holding more than a majority of all
outstanding Trust Securities (based upon their aggregate Liquidation Amount)
entitled to vote in respect of such action (or such larger proportion thereof as
shall be required by any express provision of this Trust Agreement) shall
consent to the action in writing (based upon their aggregate Liquidation
Amount).

     Section 607.  Record Date for Voting and Other Purposes.
                   -----------------------------------------

     For the purposes of determining the Securityholders who are entitled to
notice of and to vote at any meeting or by written consent, or to participate in
any Distribution on the Trust Securities in respect of which a record date is
not otherwise provided for in this Trust Agreement, or for the purpose of any
other action, the Administrative Trustees or the Property Trustee may from time
to time fix a date, not more than 90 days prior to the date of any meeting of
Securityholders or the payment of Distribution or other action, as the case may
be, as a record date for the determination of the identity of the
Securityholders of record for such purposes.

     Section 608.  Acts of Securityholders.
                   -----------------------

              (a)  Any request, demand, authorization, direction, notice,
     consent, waiver or other action provided or permitted by this Trust
     Agreement to be given, made or taken by Securityholders may be embodied in
     and evidenced by one or more instruments of substantially similar tenor
     signed by such Securityholders or owners in person or by an agent duly
     appointed in writing; and, except as otherwise expressly provided herein,
     such action shall become effective when such instrument or instruments are
     delivered to an Administrative Trustee. Such instrument or instruments (and
     the action embodied therein and evidenced thereby) are herein sometimes
     referred to as the "Act" of the Securityholders signing such instrument or
     instruments. Proof of execution of any such instrument or of a

                                      -28-
<PAGE>

     writing appointing any such agent shall be sufficient for any purpose of
     this Trust Agreement and (subject to Section 801) conclusive in favor of
     the Trustees, if made in the manner provided in this Section 608.

              (b)  The fact and date of the execution by any Person of any such
     instrument or writing may be proved by the affidavit of a witness of such
     execution or by a certificate of a notary public or other officer
     authorized by law to take acknowledgments of deeds, certifying that the
     individual signing such instrument or writing acknowledged to him the
     execution thereof. Where such execution is by a signer acting in a capacity
     other than his individual capacity, such certificate or affidavit shall
     also constitute sufficient proof of his authority. The fact and date of the
     execution of any such instrument or writing, or the authority of the Person
     executing the same, may also be proved in any other manner which any
     Trustee receiving the same deems sufficient.

              (c)  The ownership of Trust Preferred Securities shall be proved
     by the Securities Register.

              (d)  Any request, demand, authorization, direction, notice,
     consent, waiver or other Act of the Securityholder of any Trust Security
     shall bind every future Securityholder of the same Trust Security and the
     Securityholder of every Trust Security issued upon the registration of
     transfer thereof or in exchange therefor or in lieu thereof in respect of
     anything done, omitted or suffered to be done by the Trustees or the Trust
     in reliance thereon, whether or not notation of such action is made upon
     such Trust Security.

              (e)  Without limiting the foregoing, a Securityholder entitled
     hereunder to take any action hereunder with regard to any particular Trust
     Security may do so with regard to all or any part of the Liquidation Amount
     of such Trust Security or by one or more duly appointed agents each of
     which may do so pursuant to such appointment with regard to all or any part
     of such liquidation amount.

              (f)  A Securityholder may institute a legal proceeding directly
     against the Depositor under the Guarantee to enforce its rights under the
     Guarantee without first instituting a legal proceeding against the
     Guarantee Trustee (as defined in the Guarantee), the Trust or any Person.

     Section 609.  Inspection of Records.
                   ---------------------

     Upon reasonable notice to the Administrative Trustees and the Property
Trustee, the records of the Trust shall be open to inspection at the principal
executive office of the Trust (as indicated in Section 202) by record holders of
the Trust Securities during normal business hours for any purpose reasonably
related to such record holder's interest as a record holder.

                                      -29-
<PAGE>

                                  ARTICLE VII

                        REPRESENTATIONS AND WARRANTIES

     Section 701.  Representations and Warranties of the Bank and the Property
                   -----------------------------------------------------------
                   Trustee.
                   -------

     The Bank and the Property Trustee, each severally on behalf of and as to
itself, as of the date hereof, and each Successor Property Trustee at the time
of the Successor Property Trustee's acceptance of its appointment as Property
Trustee hereunder (in the case of a Successor Property Trustee, the term "Bank"
as used herein shall be deemed to refer to such Successor Property Trustee in
its separate corporate capacity), hereby represents and warrants (as applicable)
for the benefit of the Depositor and the Securityholders that:

              (a)  the Bank is a national banking association with its principal
     place of business in the State of Delaware or, with respect to a Successor
     Property Trustee, a state chartered bank and trust company; duly organized,
     validly existing and in good standing under the laws of the State of
     Delaware;

              (b)  the Bank has full corporate power, authority and legal right
     to execute, deliver and perform its obligations under this Trust Agreement
     and has taken all necessary action to authorize the execution, delivery and
     performance by it of this Trust Agreement;

              (c)  this Trust Agreement has been duly authorized, executed and
     delivered by the Property Trustee and constitutes the valid and legally
     binding agreement of the Property Trustee enforceable against it in
     accordance with its terms, subject to bankruptcy, insolvency, fraudulent
     transfer, reorganization, moratorium and similar laws of general
     applicability relating to or affecting creditors, rights and to general
     equity principles;

              (d)  the execution, delivery and performance by the Property
     Trustee of this Trust Agreement has been duly authorized by all necessary
     corporate or other action on the part of the Property Trustee and does not
     require any approval of stockholders of the Bank and such execution,
     delivery and performance shall not (i) violate the Bank's charter or by-
     laws; (ii) violate any provision of, or constitute, with or without notice
     or lapse of time, a default under, or result in the creation or imposition
     of, any Lien on any properties included in the Trust Property pursuant to
     the provisions of, any indenture, mortgage, credit agreement, license or
     other agreement or instrument to which the Property Trustee or the Bank is
     a party or by which it is bound; or (iii) violate any law, governmental
     rule or regulation of the United States or the State of Delaware, as the
     case may be, governing the banking or trust powers of the Bank or the
     Property Trustee (as appropriate in context) or any order, judgment or
     decree applicable to the Property Trustee or the Bank;

              (e)  neither the authorization, execution or delivery by the
     Property Trustee of this Trust Agreement nor the consummation of any of the
     transactions by the Property Trustee contemplated herein or therein
     requires the consent or approval of, the giving of notice to,

                                      -30-
<PAGE>

     the registration with or the taking of any other action with respect to any
     governmental authority or agency under any existing federal law governing
     the banking or trust powers of the Bank or the Property Trustee, as the
     case may be, under the laws of the United States or the State of Delaware,
     other than the filing of a Certificate of Trust with the Secretary of State
     of the State of Delaware;

              (f)  there are no proceedings pending or, to the best of the
     Property Trustee's knowledge, threatened against or affecting the Bank or
     the Property Trustee in any court or before any governmental authority,
     agency or arbitration board or tribunal which, individually or in the
     aggregate, would materially and adversely affect the Trust or would
     question the right, power and authority of the Property Trustee to enter
     into or perform its obligations as one of the Trustees under this Trust
     Agreement; and

              (g)  the Property Trustee is a Person eligible pursuant to the
     Trust Indenture Act to act as such and has a combined capital and surplus
     of at least $50,000,000.

     Section 702.  Representations and Warranties of the Delaware Bank and the
                   -----------------------------------------------------------
                   Delaware Trustee.
                   ----------------

     The Delaware Bank and the Delaware Trustee, each severally on behalf of and
as to itself, as of the date hereof, and each Successor Delaware Trustee at the
time of the Successor Delaware Trustee's acceptance of appointment as Delaware
Trustee hereunder (the term "Delaware Bank" being used to refer to such
Successor Delaware Trustee in its separate corporate capacity), hereby
represents and warrants (as applicable) for the benefit of the Depositor and the
Securityholders that:

              (a)  the Delaware Bank is a national banking association with its
     principal place of business in the State of Delaware, or, if a Successor
     Delaware Trustee, is a Delaware banking corporation duly organized, validly
     existing and in good standing under the laws of the State of Delaware;

              (b)  the Delaware Bank has full corporate power, authority and
     legal right to execute, deliver and perform its obligations under this
     Trust Agreement and has taken all necessary action to authorize the
     execution, delivery and performance by it of this Trust Agreement;

              (c)  this Trust Agreement has been duly authorized, executed and
     delivered by the Delaware Trustee and constitutes the valid and legally
     binding agreement of the Delaware Trustee enforceable against it in
     accordance with its terms, subject to bankruptcy, insolvency, fraudulent
     transfer, reorganization, moratorium and similar laws of general
     applicability relating to or affecting creditors, rights and to general
     equity principles;

              (d)  the execution, delivery and performance by the Delaware
     Trustee of this Trust Agreement has been duly authorized by all necessary
     corporate or other action on the part of the Delaware Trustee and does not
     require any approval of stockholders of the Delaware

                                      -31-
<PAGE>

     Bank and such execution, delivery and performance shall not (i) violate the
     Delaware Bank's charter or by-laws; (ii) violate any provision of, or
     constitute, with or without notice or lapse of time, a default under, or
     result in the creation or imposition of, any Lien on any properties
     included in the Trust Property pursuant to the provisions of, any
     indenture, mortgage, credit agreement, license or other agreement or
     instrument to which the Delaware Bank or the Delaware Trustee is a party or
     by which it is bound; or (iii) violate any law, governmental rule or
     regulation of the United States or the State of Delaware, as the case may
     be, governing the banking or trust powers of the Delaware Bank or the
     Delaware Trustee (as appropriate in context) or any order, judgment or
     decree applicable to the Delaware Bank or the Delaware Trustee;

              (e)  neither the authorization, execution or delivery by the
     Delaware Trustee of this Trust Agreement nor the consummation of any of the
     transactions by the Delaware Trustee contemplated herein or therein
     requires the consent or approval of, the giving of notice to, the
     registration with or the taking of any other action with respect to any
     governmental authority or agency under any existing federal law governing
     the banking or trust powers of the Delaware Bank or the Delaware Trustee,
     as the case may be, under the laws of the United States or the State of
     Delaware, other than the filing of the Certificate of Trust with the
     Secretary of State of the State of Delaware; and

              (f)  there are no proceedings pending or, to the best of the
     Delaware Trustee's knowledge, threatened against or affecting the Delaware
     Bank or the Delaware Trustee in any court or before any governmental
     authority, agency or arbitration board or tribunal which, individually or
     in the aggregate, would materially and adversely affect the Trust or would
     question the right, power and authority of the Delaware Trustee to enter
     into or perform its obligations as one of the Trustees under this Trust
     Agreement.

     Section 703.  Representations and Warranties of Depositor.
                   -------------------------------------------

     The Depositor hereby represents and warrants for the benefit of the
Securityholders that:

              (a)  the Trust Securities Certificates issued on the Closing Date
     on behalf of the Trust have been duly authorized and, shall have been, duly
     and validly executed, issued and delivered by the Administrative Trustees
     pursuant to the terms and provisions of, and in accordance with the
     requirements of, this Trust Agreement and the Securityholders shall be, as
     of such date, entitled to the benefits of this Trust Agreement; and

              (b)  there are no taxes, fees or other governmental charges
     payable by the Trust (or the Trustees on behalf of the Trust) under the
     laws of the State of Delaware or any political subdivision thereof in
     connection with the execution, delivery and performance by the Bank, the
     Property Trustee or the Delaware Trustee, as the case may be, of this Trust
     Agreement.

                                      -32-
<PAGE>

                                 ARTICLE VIII

                                   TRUSTEES

     Section 801.  Certain Duties and Responsibilities.
                   -----------------------------------

              (a)  The duties and responsibilities of the Trustees shall be as
     provided by this Trust Agreement and, in the case of the Property Trustee,
     by the Trust Indenture Act. Notwithstanding the foregoing, no provision of
     this Trust Agreement shall require the Trustees to expend or risk their own
     funds or otherwise incur any financial liability in the performance of any
     of their duties hereunder, or in the exercise of any of their rights or
     powers, if they shall have reasonable grounds for believing that repayment
     of such funds or adequate indemnity against such risk or liability is not
     reasonably assured to it. No Administrative Trustee nor the Delaware
     Trustee shall be liable for its act or omissions hereunder except as a
     result of its own gross negligence or willful misconduct. The Property
     Trustee's liability shall be determined under the Trust Indenture Act.
     Whether or not therein expressly so provided, every provision of this Trust
     Agreement relating to the conduct or affecting the liability of or
     affording protection to the Trustees shall be subject to the provisions of
     this Section 801. To the extent that, at law or in equity, the Delaware
     Trustee or an Administrative Trustee has duties (including fiduciary
     duties) and liabilities relating thereto to the Trust or to the
     Securityholders, the Delaware Trustee or such Administrative Trustee shall
     not be liable to the Trust or to any Securityholder for such Trustee's good
     faith reliance on the provisions of this Trust Agreement. The provisions of
     this Trust Agreement, to the extent that they restrict the duties and
     liabilities of the Delaware Trustee or the Administrative Trustees
     otherwise existing at law or in equity, are agreed by the Depositor and the
     Securityholders to replace such other duties and liabilities of the
     Delaware Trustee or the Administrative Trustees, as the case may be.

              (b)  All payments made by the Property Trustee or a Paying Agent
     in respect of the Trust Securities shall be made only from the revenue and
     proceeds from the Trust Property and only to the extent that there shall be
     sufficient revenue or proceeds from the Trust Property to enable the
     Property Trustee or a Paying Agent to make payments in accordance with the
     terms hereof. Each Securityholder, by its acceptance of a Trust Security,
     agrees that it shall look solely to the revenue and proceeds from the Trust
     Property to the extent legally available for distribution to it as herein
     provided and that the Trustees are not personally liable to it for any
     amount distributable in respect of any Trust Security or for any other
     liability in respect of any Trust Security. This Section 801(b) does not
     limit the liability of the Trustees expressly set forth elsewhere in this
     Trust Agreement or, in the case of the Property Trustee, in the Trust
     Indenture Act.

              (c)  No provision of this Trust Agreement 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:

                                      -33-
<PAGE>

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

                   (ii)  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 Trust 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 Trust
              Agreement;

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

                   (iv)  the Property Trustee shall not be liable for any
              interest on any money received by it except as it may otherwise
              agree with the Depositor and money held by the Property Trustee
              need not be segregated from other funds held by it except in
              relation to the Payment Account maintained by the Property Trustee
              pursuant to Section 301 and except to the extent otherwise
              required by law; and

              (d)  the Property Trustee shall not be responsible for monitoring
     the compliance by the Administrative Trustees or the Depositor with their
     respective duties under this Trust Agreement, nor shall the Property
     Trustee be liable for the negligence, default or misconduct of the
     Administrative Trustees or the Depositor.

     Section 802.  Certain Notices.
                   ---------------

              (a)  Within five Business Days after the occurrence of any Event
     of Default actually known to the Property Trustee, the Property Trustee
     shall transmit, in the manner and to the extent provided in Section 1008,
     notice of such Event of Default to the Securityholders, the Administrative
     Trustees and the Depositor, unless such Event of Default shall have been
     cured or waived. For purposes of this Section 802 the term "Event of
     Default" means any event that is, or after notice or lapse of time or both
     would become, an Event of Default.

              (b)  The Administrative Trustees shall transmit, to the
     Securityholders in the manner and to the extent provided in Section 1008,
     notice of the Depositor's election to begin or further extend an Extended
     Interest Payment Period on the Debentures (unless such election shall have
     been revoked) within the time specified for transmitting such notice to the
     holders of the Debentures pursuant to the Indenture as originally executed.

                                      -34-
<PAGE>

     Section 803.  Certain Rights of Property Trustee.
                   ----------------------------------

     Subject to the provisions of Section 801:

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

              (b)  if (i) in performing its duties under this Trust Agreement
     the Property Trustee is required to decide between alternative courses of
     action; or (ii) in construing any of the provisions of this Trust Agreement
     the Property Trustee finds the same ambiguous or inconsistent with other
     provisions contained herein; or (iii) the Property Trustee is unsure of the
     application of any provision of this Trust Agreement, then, except as to
     any matter as to which the Trust Preferred Securityholders are entitled to
     vote under the terms of this Trust Agreement, the Property Trustee shall
     deliver a notice to the Depositor requesting written instructions of the
     Depositor as to the course of action to be taken and the Property Trustee
     shall take such action, or refrain from taking such action, as the Property
     Trustee shall be instructed in writing to take, or to refrain from taking,
     by the Depositor; provided, however, that if the Property Trustee does not
     receive such instructions of the Depositor within 10 Business Days after it
     has delivered such notice, or such reasonably shorter period of time set
     forth in such notice (which to the extent practicable shall not be less
     than 2 Business Days), it may, but shall be under no duty to, take or
     refrain from taking such action not inconsistent with this Trust Agreement
     as it shall deem advisable and in the best interests of the
     Securityholders, in which event the Property Trustee shall have no
     liability except for its own bad faith, negligence or willful misconduct;

              (c)  any direction or act of the Depositor or the Administrative
     Trustees contemplated by this Trust Agreement shall be sufficiently
     evidenced by an Officers' Certificate;

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

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

                                      -35-
<PAGE>

              (f)  the Property Trustee may consult with counsel of its choice
     (which counsel may be counsel to the Depositor or any of its Affiliates)
     and the advice of such counsel shall be full and complete authorization and
     protection in respect of any action taken, suffered or omitted by it
     hereunder in good faith and in reliance thereon and, in accordance with
     such advice, such counsel may be counsel to the Depositor 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 Trust Agreement from any court of competent
     jurisdiction;

              (g)  the Property Trustee shall be under no obligation to exercise
     any of the rights or powers vested in it by this Trust Agreement at the
     request or direction of any of the Securityholders pursuant to this Trust
     Agreement, unless such Securityholders shall have offered to the Property
     Trustee reasonable security or indemnity against the costs, expenses and
     liabilities which might be incurred by it in compliance with such request
     or direction;

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

              (i)  the Property Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     its agents or attorneys, provided that the Property Trustee shall be
     responsible for its own negligence or recklessness with respect to
     selection of any agent or attorney appointed by it hereunder;

              (j)  whenever in the administration of this Trust Agreement 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 Trust Securities which instructions may only be given by the
     Holders of the same proportion in Liquidation Amount of the Trust
     Securities as would be entitled to direct the Property Trustee under the
     terms of the Trust Securities in respect of such remedy, right or action;
     (ii) may refrain from enforcing such remedy or right or taking such other
     action until such instructions are received; and (iii) shall be protected
     in acting in accordance with such instructions; and

              (k)  except as otherwise expressly provided by this Trust
     Agreement, the Property Trustee shall not be under any obligation to take
     any action that is discretionary under the provisions of this Trust
     Agreement. No provision of this Trust Agreement 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

                                      -36-
<PAGE>

     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 804.  Not Responsible for Recitals or Issuance of Securities.
                   ------------------------------------------------------

     The Recitals contained herein and in the Trust Securities Certificates
shall be taken as the statements of the Trust, and the Trustees do not assume
any responsibility for their correctness.  The Trustees shall not be accountable
for the use or application by the Depositor of the proceeds of the Debentures.

     Section 805.  May Hold Securities.
                   -------------------

     Any Trustee or any other agent of any Trustee or the Trust, in its
individual or any other capacity, may become the owner or pledgee of Trust
Securities and, subject to Sections 808 and 813 and except as provided in the
definition of the term "Outstanding" in Article I, may otherwise deal with the
Trust with the same rights it would have if it were not a Trustee or such other
agent.

     Section 806.  Compensation; Indemnity; Fees.
                   -----------------------------

     The Depositor agrees:

              (a)  to pay to the Trustees from time to time compensation for all
     services rendered by them hereunder (which compensation shall not be
     limited by any provision of law in regard to the compensation of a trustee
     of an express trust), in the case of the Property Trustee, as set forth in
     a written agreement between the Depositor and the Property Trustee;

              (b)  except as otherwise expressly provided herein, to reimburse
     the Trustees upon request for all reasonable expenses, disbursements and
     advances incurred or made by the Trustees in accordance with any provision
     of this Trust Agreement (including the reasonable compensation and the
     expenses and disbursements of its agents and counsel), except any such
     expense, disbursement or advance as may be attributable to such Trustee's
     negligence, bad faith or willful misconduct (or, in the case of the
     Administrative Trustees or the Delaware Trustee, any such expense,
     disbursement or advance as may be attributable to its, his or her gross
     negligence, bad faith or willful misconduct); and

              (c)  to indemnify each of the Trustees or any predecessor Trustee
     for, and to hold the Trustees harmless against, any loss, damage, claims,
     liability, penalty or expense of any kind or nature whatsoever, arising out
     of or in connection with the acceptance or administration of this Trust
     Agreement, including the costs and expenses of defending itself against any
     claim or liability in connection with the exercise or performance of any of
     its powers or duties hereunder, except any such expense, disbursement or
     advance as may be attributable to such Trustee's negligence, bad faith or
     willful misconduct for (or, in the case of the Administrative Trustees or
     the Delaware Trustee, any such expense, disbursement or

                                      -37-
<PAGE>

     advance as may be attributable to its, his or her gross negligence, bad
     faith or willful misconduct).

     Each Trustee may claim a Lien or charge on Trust Property as a result of
any amount due and unpaid pursuant to this Section 806.  The Property Trustee
and the Delaware Trustee may be the same Person.

     Section 807.  Corporate Property Trustee Required; Eligibility of Trustees.
                   ------------------------------------------------------------

              (a)  There shall at all times be a Property Trustee hereunder with
     respect to the Trust Securities.  The Property Trustee shall be a Person
     that is eligible pursuant to the Trust Indenture Act to act as such and has
     a combined capital and surplus of at least $50,000,000.  If any such Person
     publishes reports of condition at least annually, pursuant to law or to the
     requirements of its supervising or examining authority, then for the
     purposes of this Section 807, 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.  If at any time the
     Property Trustee with respect to the Trust Securities shall cease to be
     eligible in accordance with the provisions of this Section 807, it shall
     resign immediately in the manner and with the effect hereinafter specified
     in this Article VIII.

              (b)  There shall at all times be one or more Administrative
     Trustees hereunder with respect to the Trust Securities. Each
     Administrative 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 persons
     authorized to bind that entity.

              (c)  There shall at all times be a Delaware Trustee with respect
     to the Trust Securities. The Delaware Trustee shall either be (i) a natural
     person who is at least 21 years of age and a resident of the State of
     Delaware; or (ii) a legal entity with its principal place of business in
     the State of Delaware and that otherwise meets the requirements of
     applicable Delaware law that shall act through one or more persons
     authorized to bind such entity.

     Section 808.  Conflicting Interests.
                   ---------------------

     If the Property Trustee has or shall acquire a conflicting interest within
the meaning of the Trust Indenture Act, the Property Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Trust
Agreement.

     Section 809.  Co-Trustees and Separate Trustee.
                   --------------------------------

              (a)  Unless an Event of Default shall have occurred and be
     continuing, at any time or times, for the purpose of meeting the legal
     requirements of the Trust Indenture Act or of any jurisdiction in which any
     part of the Trust Property may at the time be located, the Depositor shall
     have power to appoint, and upon the written request of the Property
     Trustee,

                                      -38-
<PAGE>

     the Depositor shall for such purpose join with the Property Trustee in the
     execution, delivery and performance of all instruments and agreements
     necessary or proper to appoint, one or more Persons approved by the
     Property Trustee either to act as co-trustee, jointly with the Property
     Trustee, of all or any part of such Trust Property, or to the extent
     required by law to act as separate trustee of any such property, in either
     case with such powers as may be provided in the instrument of appointment,
     and to vest in such Person or Persons in the capacity aforesaid, any
     property, title, right or power deemed necessary or desirable, subject to
     the other provisions of this Section 809. If the Depositor does not join in
     such appointment within 15 days after the receipt by it of a request so to
     do, or in case a Debenture Event of Default has occurred and is continuing,
     the Property Trustee alone shall have power to make such appointment. Any
     co-trustee or separate trustee appointed pursuant to this Section 809 shall
     either be (i) a natural person who is at least 21 years of age and a
     resident of the United States; or (ii) a legal entity with its principal
     place of business in the United States that shall act through one or more
     persons authorized to bind such entity.

              (b)  Should any written instrument from the Depositor be required
     by any co-trustee or separate trustee so appointed for more fully
     confirming to such co-trustee or separate trustee such property, title,
     right, or power, any and all such instruments shall, on request, be
     executed, acknowledged, and delivered by the Depositor.

              (c)  Every co-trustee or separate trustee shall, to the extent
     permitted by law, but to such extent only, be appointed subject to the
     following terms, namely:

                   (i)   The Trust Securities shall be executed and delivered
              and all rights, powers, duties and obligations hereunder in
              respect of the custody of securities, cash and other personal
              property held by, or required to be deposited or pledged with, the
              Trustees specified hereunder, shall be exercised, solely by such
              Trustees and not by such co-trustee or separate trustee.

                   (ii)  The rights, powers, duties and obligations hereby
              conferred or imposed upon the Property Trustee in respect of any
              property covered by such appointment shall be conferred or imposed
              upon and exercised or performed by the Property Trustee or by the
              Property Trustee and such co-trustee or separate trustee jointly,
              as shall be provided in the instrument appointing such co-trustee
              or separate trustee, except to the extent that under any law of
              any jurisdiction in which any particular act is to be performed,
              the Property Trustee shall be incompetent or unqualified to
              perform such act, in which event such rights, powers, duties and
              obligations shall be exercised and performed by such co-trustee or
              separate trustee.

                   (iii) The Property Trustee at any time, by an instrument in
              writing executed by it, with the written concurrence of the
              Depositor, may accept the resignation of or remove any co-trustee
              or separate trustee appointed under this Section 809, and, in case
              a Debenture Event of Default has occurred and is continuing, the
              Property Trustee shall have the power to accept the resignation
              of, or

                                      -39-
<PAGE>

              remove, any such co-trustee or separate trustee without the
              concurrence of the Depositor. Upon the written request of the
              Property Trustee, the Depositor shall join with the Property
              Trustee in the execution, delivery and performance of all
              instruments and agreements necessary or proper to effectuate such
              resignation or removal. A successor to any co-trustee or separate
              trustee so resigned or removed may be appointed in the manner
              provided in this Section 809.

                   (iv)  No co-trustee or separate trustee hereunder shall be
              personally liable by reason of any act or omission of the Property
              Trustee or any other trustee hereunder.

                   (v)   The Property Trustee shall not be liable by reason of
              any act of a co-trustee or separate trustee.

                   (vi)  Any Act of Holders delivered to the Property Trustee
              shall be deemed to have been delivered to each such co-trustee and
              separate trustee.

     Section 810.  Resignation and Removal; Appointment of Successor.
                   -------------------------------------------------

              (a)  No resignation or removal of any Trustee (the "Relevant
     Trustee") and no appointment of a successor Trustee pursuant to this
     Article VIII shall become effective until the acceptance of appointment by
     the successor Trustee in accordance with the applicable requirements of
     Section 811.

              (b)  Subject to the immediately preceding paragraph, the Relevant
     Trustee may resign at any time with respect to the Trust Securities by
     giving written notice thereof to the Securityholders. If the instrument of
     acceptance by the successor Trustee required by Section 811 shall not have
     been delivered to the Relevant Trustee within 30 days after the giving of
     such notice of resignation, the Relevant Trustee may petition, at the
     expense of the Depositor, any court of competent jurisdiction or the
     appointment of a successor Relevant Trustee with respect to the Trust
     Securities.

              (c)  Unless a Debenture Event of Default shall have occurred and
     be continuing, any Trustee may be removed at any time by Act of the Common
     Securityholder. If a Debenture Event of Default shall have occurred and be
     continuing, the Property Trustee or the Delaware Trustee, or both of them,
     may be removed at such time by Act of the Holders of a majority in
     Liquidation Amount of the Trust Preferred Securities, delivered to the
     Relevant Trustee (in its individual capacity and on behalf of the Trust).
     An Administrative Trustee may be removed by the Common Securityholder at
     any time.

              (d)  If any Trustee shall resign, be removed or become incapable
     of acting as Trustee, or if a vacancy shall occur in the office of any
     Trustee for any cause, at a time when no Debenture Event of Default shall
     have occurred and be continuing, the Common Securityholder, by Act of the
     Common Securityholder delivered to the retiring Trustee, shall

                                      -40-
<PAGE>

     promptly appoint a successor Trustee or Trustees with respect to the Trust
     Securities and the Trust, and the successor Trustee shall comply with the
     applicable requirements of Section 811. If the Property Trustee or the
     Delaware Trustee shall resign, be removed or become incapable of continuing
     to act as the Property Trustee or the Delaware Trustee, as the case may be,
     at a time when a Debenture Event of Default shall have occurred and is
     continuing, the Trust Preferred Securityholders, by Act of the
     Securityholders of a majority in Liquidation Amount of the Trust Preferred
     Securities then Outstanding delivered to the retiring Relevant Trustee,
     shall promptly appoint a successor Relevant Trustee or Trustees with
     respect to the Trust Securities and the Trust, and such successor Trustee
     shall comply with the applicable requirements of Section 811. If an
     Administrative Trustee shall resign, be removed or become incapable of
     acting as Administrative Trustee, at a time when a Debenture Event of
     Default shall have occurred and be continuing, the Common Securityholder,
     by Act of the Common Securityholder delivered to an Administrative Trustee,
     shall promptly appoint a successor Administrative Trustee or Administrative
     Trustees with respect to the Trust Securities and the Trust, and such
     successor Administrative Trustee or Administrative Trustees shall comply
     with the applicable requirements of Section 811. If no successor Relevant
     Trustee with respect to the Trust Securities shall have been so appointed
     by the Common Securityholder or the Trust Preferred Securityholders and
     accepted appointment in the manner required by Section 811, any
     Securityholder who has been a Securityholder of Trust Securities on behalf
     of himself and all others similarly situated may petition a court of
     competent jurisdiction for the appointment Trustee with respect to the
     Trust Securities.

              (e)  The Property Trustee shall give notice of each resignation
     and each removal of a Trustee and each appointment of a successor Trustee
     to all Securityholders in the manner provided in Section 1008 and shall
     give notice to the Depositor. Each notice shall include the name of the
     successor Relevant Trustee and the address of its Corporate Trust office if
     it is the Property Trustee.

              (f)  Notwithstanding the foregoing or any other provision of this
     Trust Agreement, in the event any Administrative Trustee or a Delaware
     Trustee who is a natural person dies or becomes, in the opinion of the
     Depositor, incompetent or incapacitated, the vacancy created by such death,
     incompetence or incapacity may be filled by (a) the unanimous act of
     remaining Administrative Trustees if there are at least two of them; or (b)
     otherwise by the Depositor (with the successor in each case being a Person
     who satisfies the eligibility requirement for Administrative Trustees set
     forth in Section 807).

     Section 811.  Acceptance of Appointment by Successor.
                   --------------------------------------

              (a)  In case of the appointment hereunder of a successor Relevant
     Trustee with respect to the Trust Securities and the Trust, the retiring
     Relevant Trustee and each successor Relevant Trustee with respect to the
     Trust Securities shall execute and deliver an instrument hereto wherein
     each successor Relevant Trustee shall accept such appointment and which
     shall contain such provisions as shall be necessary or desirable to
     transfer and confirm to,

                                      -41-
<PAGE>

     and to vest in, each successor Relevant Trustee all the rights, powers,
     trusts and duties of the retiring Relevant Trustee with respect to the
     Trust Securities and the Trust and upon the execution and delivery of such
     instrument the resignation or removal of the retiring Relevant Trustee
     shall become effective to the extent provided therein and each such
     successor Relevant Trustee, without any further act, deed or conveyance,
     shall become vested with all the rights, powers, trusts and duties of the
     retiring Relevant Trustee with respect to the Trust Securities and the
     Trust; but, on request of the Trust or any successor Relevant Trustee such
     retiring Relevant Trustee shall duly assign, transfer and deliver to such
     successor Relevant Trustee all Trust Property, all proceeds thereof and
     money held by such retiring Relevant Trustee hereunder with respect to the
     Trust Securities and the Trust.

              (b)  Upon request of any such successor Relevant Trustee, the
     Trust shall execute any and all instruments for more fully and certainly
     vesting in and confirming to such successor Relevant Trustee all such
     rights, powers and trusts referred to in the immediately preceding
     paragraph, as the case may be.

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

     Section 812.  Merger, Conversion, Consolidation or Succession to Business.
                   -----------------------------------------------------------

     Any Person into which the Property Trustee, the Delaware Trustee or any
Administrative Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Relevant Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of such Relevant Trustee, shall be the successor of such Relevant Trustee
hereunder, provided such Person shall be otherwise qualified and eligible under
this Article VIII, without the execution or filing of any paper or any further
act on the part of any of the parties hereto.

     Section 813.  Preferential Collection of Claims Against Depositor or Trust.
                   ------------------------------------------------------------

     If and when the Property Trustee or the Delaware Trustee shall be or become
a creditor of the Depositor or the Trust (or any other obligor upon the
Debentures or the Trust Securities), the Property Trustee or the Delaware
Trustee, as the case may be, shall be subject to and shall take all actions
necessary in order to comply with the provisions of the Trust Indenture Act
regarding the collection of claims against the Depositor or Trust (or any such
other obligor).

     Section 814.  Reports by Property Trustee.
                   ---------------------------

              (a)  Not later than July 15 of each year commencing with July 15,
     2000, the Property Trustee shall transmit to all Securityholders in
     accordance with Section 1008, and to the Depositor, a brief report dated as
     of May 15 with respect to:

                                      -42-
<PAGE>

                   (i)   its eligibility under Section 807 or, in lieu thereof,
              if to the best of its knowledge it has continued to be eligible
              under said Section, a written statement to such effect; and

                   (ii)  any change in the property and funds in its possession
              as Property Trustee since the date of its last report and any
              action taken by the Property Trustee in the performance of its
              duties hereunder which it has not previously reported and which in
              its opinion materially affects the Trust Securities.

              (b)  In addition the Property Trustee shall transmit to
     Securityholders such reports concerning the Property Trustee and its
     actions under this Trust Agreement as may be required pursuant to the Trust
     Indenture Act at the times and in the manner provided pursuant thereto.

              (c)  A copy of each such report shall, at the time of such
     transmission to Holders, be filed by the Property Trustee with the
     Depositor.

     Section 815.  Reports to the Property Trustee.
                   -------------------------------

     The Depositor 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(a) of the Trust Indenture Act in the form,
in the manner and at the times required by Section 314 of the Trust Indenture
Act.

     Section 816.  Evidence of Compliance with Conditions Precedent.
                   ------------------------------------------------

     Each of the Depositor 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 Trust Agreement that relate
to any of the matters set forth in Section 314(c) of the Trust Indenture Act.
Any certificate or opinion required to be given by an officer pursuant to
Section 314(c)(1) of the Trust Indenture Act shall be given in the form of an
Officers' Certificate.

     Section 817.  Number of Trustees.
                   ------------------

              (a)  The number of Trustees shall be five, provided that the
     Holder of all of the Common Securities by written instrument may increase
     or decrease the number of Administrative Trustees. The Property Trustee and
     the Delaware Trustee may be the same Person.

              (b)  If a Trustee ceases to hold office for any reason and the
     number of Administrative Trustees is not reduced pursuant to Section
     817(a), or if the number of Trustees is increased pursuant to Section
     817(a), a vacancy shall occur. The vacancy shall be filled with a Trustee
     appointed in accordance with Section 810.

                                      -43-
<PAGE>

              (c)  The death, resignation, retirement, removal, bankruptcy,
     incompetence or incapacity to perform the duties of a Trustee shall not
     operate to 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 810,
     the Administrative Trustees in office, regardless of their number (and
     notwithstanding any other provision of this Agreement), shall have all the
     powers granted to the Administrative Trustees and shall discharge all the
     duties imposed upon the Administrative Trustees by this Trust Agreement.

     Section 818.  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 207(a); and

              (b)  The Administrative Trustees shall have power to delegate from
     time to time to such of their number or to the Depositor 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 819.  Voting.
                   ------

     Except as otherwise provided in this Trust Agreement, the consent or
approval of the Administrative Trustees shall require consent or approval by not
less than a majority of the Administrative Trustees, unless there are only two,
in which case both must consent.

                                  ARTICLE IX

                      TERMINATION, LIQUIDATION AND MERGER

     Section 901.  Termination Upon Expiration Date.
                   --------------------------------

     Unless earlier dissolved, the Trust shall automatically dissolve on
November 24, 2030 (the "Expiration Date") subject to distribution of the Trust
Property in accordance with Section 904.

     Section 902.  Early Termination.
                   -----------------

     The first to occur of any of the following events is an "Early Termination
Event:"

              (a)  the occurrence of a Bankruptcy Event in respect of, or the
     dissolution or liquidation of, the Depositor;

                                      -44-
<PAGE>

              (b)  delivery of written direction to the Property Trustee by the
     Depositor at any time (which direction is wholly optional and within the
     discretion of the Depositor, subject to Depositor having received prior
     approval of the Board of Governors of the Federal Reserve System if so
     required under applicable guidelines, policies or regulations thereof) to
     dissolve the Trust and distribute the Debentures to Securityholders in
     exchange for the Trust Preferred Securities in accordance with Section 904;

              (c)  the redemption of all of the Trust Preferred Securities in
     connection with the redemption of all of the Debentures (whether upon a
     Debenture Redemption Date or the maturity of the Debenture); or

              (d)  an order for dissolution of the Trust shall have been entered
     by a court of competent jurisdiction.

     Section 903.  Termination.
                   -----------

     The respective obligations and responsibilities of the Trustees and the
Trust created and continued hereby shall terminate upon the latest to occur of
the following: (a) the distribution by the Property Trustee to Securityholders
upon the liquidation of the Trust pursuant to Section 904, or upon the
redemption of all of the Trust Securities pursuant to Section 402, of all
amounts required to be distributed hereunder upon the final payment of the Trust
Securities; (b) the payment of any expenses owed by the Trust; (c) the discharge
of all administrative duties of the Administrative Trustees, including the
performance of any tax reporting obligations with respect to the Trust or the
Securityholders; and (d) the filing of a Certificate of Cancellation by the
Administrative Trustee under the Business Trust Act.

     Section 904.  Liquidation.
                   -----------

              (a)  If an Early Termination Event specified in clause (a), (b),
     or (d) of Section 902 occurs or upon the Expiration Date, the Trust shall
     be liquidated by the Trustees as expeditiously as the Trustees determine to
     be possible by distributing, after satisfaction of liabilities to creditors
     of the Trust as provided by applicable law, to each Securityholder a Like
     Amount of Debentures, subject to Section 904(d). Notice of liquidation
     shall be given by the Property Trustee by first-class mail, postage
     prepaid, mailed not later than 30 nor more than 60 days prior to the
     Liquidation Date to each Holder of Trust Securities at such Holder's
     address appearing in the Securities Register. All notices of liquidation
     shall:

                   (i)   state the Liquidation Date;

                   (ii)  state that from and after the Liquidation Date, the
              Trust Securities shall no longer be deemed to be Outstanding and
              any Trust Securities Certificates not surrendered for exchange
              shall be deemed to represent a Like Amount of Debentures; and

                                      -45-
<PAGE>

                   (iii)  provide such information with respect to the mechanics
              by which Holders may exchange Trust Securities Certificates for
              Debentures, or, if Section 904(d) applies, receive a Liquidation
              Distribution, as the Administrative Trustees or the Property
              Trustee shall deem appropriate.

              (b)  Except where Section 902(c) or 904(d) applies, in order to
     effect the liquidation of the Trust and distribution of the Debentures to
     Securityholders, the Property Trustee shall establish a record date for
     such distribution (which shall be not more than 45 days prior to the
     Liquidation Date) and, either itself acting as exchange agent or through
     the appointment of a separate exchange agent, shall establish such
     procedures as it shall deem appropriate to effect the distribution of
     Debentures in exchange for the Outstanding Trust Securities Certificates.

              (c)  Except where Section 902(c) or 904(d) applies, after the
     Liquidation Date, (i) the Trust Securities shall no longer be deemed to be
     outstanding; (ii) certificates representing a Like Amount of Debentures
     shall be issued to holders of Trust Securities Certificates upon surrender
     of such certificates to the Administrative Trustees or their agent for
     exchange; (iii) any Trust Securities Certificates not so surrendered for
     exchange shall be deemed to represent a Like Amount of Debentures, accruing
     interest at the rate provided for in the Debentures from the last
     Distribution Date on which a Distribution was made on such Trust Securities
     Certificates until such certificates are so surrendered (and until such
     certificates are so surrendered, no payments of interest or principal shall
     be made to holders of Trust Securities Certificates with respect to such
     Debentures); and (iv) all rights of Securityholders holding Trust
     Securities shall cease, except the right of such Securityholders to receive
     Debentures upon surrender of Trust Securities Certificates.

              (d)  In the event that, notwithstanding the other provisions of
     this Section 904, whether because of an order for dissolution entered by a
     court of competent jurisdiction or otherwise, distribution of the
     Debentures in the manner provided herein is determined by the Property
     Trustee not to be practical, the Trust Property shall be liquidated, and
     the Trust shall be dissolved, wound-up or terminated, by the Property
     Trustee in such manner as the Property Trustee determines. In such event,
     on the date of the dissolution, winding-up or other termination of the
     Trust, Securityholders shall be entitled to receive out of the assets of
     the Trust available for distribution to Securityholders, after satisfaction
     of liabilities to creditors of the Trust as provided by applicable law, an
     amount equal to the Liquidation Amount per Trust Security plus accumulated
     and unpaid Distributions thereon to the date of payment (such amount being
     the "Liquidation Distribution"). If, upon any such dissolution, winding-up
     or termination, 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, subject to the next succeeding
     sentence, the amounts payable by the Trust on the Trust Securities shall be
     paid on a pro rata basis (based upon Liquidation Amounts). The holder of
     the Common Securities shall be entitled to receive Liquidation
     Distributions upon any such dissolution, winding-up or termination pro rata
     (determined as aforesaid) with Holders of Trust Preferred Securities,
     except that, if a Debenture Event of Default has occurred and

                                      -46-
<PAGE>

     is continuing, the Trust Preferred Securities shall have a priority over
     the Common Securities.

     Section 905.  Mergers, Consolidations, Amalgamations or Replacements of the
                   -------------------------------------------------------------
                   Trust.
                   -----

     The Trust may not merge with or into, consolidate, amalgamate, or be
replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to any corporation or other Person, except pursuant
to this Section 905. At the request of the Depositor, with the consent of the
Administrative Trustees and without the consent of the holders of the Trust
Preferred Securities, the Property Trustee or the Delaware Trustee, the Trust
may merge with or into, consolidate, amalgamate, be replaced by or convey,
transfer or lease its properties and assets substantially as an entirety to a
trust organized as such under the laws of any state; provided, that (i) such
successor entity either (a) expressly assumes all of the obligations of the
Trust with respect to the Trust Preferred Securities; or (b) substitutes for the
Trust Preferred Securities other securities having substantially the same terms
as the Trust Preferred Securities (the "Successor Securities) so long as the
Successor Securities rank the same as the Trust Preferred Securities rank in
priority with respect to distributions and payments upon liquidation, redemption
and otherwise; (ii) the Depositor expressly appoints a trustee of such successor
entity possessing substantially the same powers and duties as the Property
Trustee as the holder of the Debentures; (iii) the Successor Securities are
listed or traded, or any Successor Securities shall be listed or traded upon
notification of issuance, on any national securities exchange or other
organization on which the Trust Preferred Securities are then listed, if any;
(iv) such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease does not adversely affect the rights, preferences and privileges of the
holders of the Trust Preferred Securities (including any Successor Securities)
in any material respect; (v) such successor entity has a purpose substantially
identical to that of the Trust; (vi) prior to such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, the Depositor has
received an Opinion of Counsel to the effect that (a) such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease does not
adversely affect the rights, preferences and privileges of the holders of the
Trust Preferred Securities (including any Successor Securities) in any material
respect; and (b) following such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease, neither the Trust nor such successor
entity shall be required to register as an "investment company" under the
Investment Company Act; and (vii) the Depositor owns all of the Common
Securities of such successor entity and guarantees the obligations of such
successor entity under the Successor Securities at least to the extent provided
by the Guarantee. Notwithstanding the foregoing, the Trust shall not, except
with the consent of holders of 100% in Liquidation Amount of the Trust Preferred
Securities, 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 other Person or permit any other Person to consolidate, amalgamate, merge
with or into, or replace it if such consolidation, amalgamation, merger or
replacement would cause the Trust or the successor entity to be classified as
other than a grantor trust for United States federal income tax purposes.

                                      -47-
<PAGE>

                                   ARTICLE X

                           MISCELLANEOUS PROVISIONS

     Section 1001. Limitation of Rights of Securityholders.
                   ---------------------------------------

     The death or incapacity of any Person having an interest, beneficial or
otherwise, in Trust Securities shall not operate to terminate this Trust
Agreement, nor entitle the legal representatives or heirs of such Person or any
Securityholder for such Person, to claim an accounting, take any action or bring
any proceeding in any court for a partition or winding-up of the arrangements
contemplated hereby, nor otherwise affect the rights, obligations and
liabilities of the parties hereto or any of them.

     Section 1002. Amendment.
                   ---------

              (a)  This Trust Agreement may be amended from time to time by the
     Trustees and the Depositor, without the consent of any Securityholders, (i)
     as provided in Section 811 with respect to acceptance of appointment by a
     successor Trustee; (ii) to cure any ambiguity, correct or supplement any
     provision herein or therein which may be inconsistent with any other
     provision herein or therein, or to make any other provisions with respect
     to matters or questions arising under this Trust Agreement, that shall not
     be inconsistent with the other provisions of this Trust Agreement; or (iii)
     to modify, eliminate or add to any provisions of this Trust Agreement to
     such extent as shall be necessary to ensure that the Trust shall be
     classified for United States federal income tax purposes as a grantor trust
     at all times that any Trust Securities are outstanding or to ensure that
     the Trust shall not be required to register as an "investment company"
     under the Investment Company Act; provided, however, that in the case of
     clause (ii), such action shall not adversely affect in any material respect
     the interests of any Securityholder, and any amendments of this Trust
     Agreement shall become effective when notice thereof is given to the
     Securityholders.

              (b)  Except as provided in Section 601(c) or Section 1002(c)
     hereof, any provision of this Trust Agreement may be amended by the
     Trustees and the Depositor (i) with the consent of Trust Securityholders
     representing not less than a majority (based upon Liquidation Amounts) of
     the Trust Securities then Outstanding; and (ii) upon receipt by the
     Trustees of an Opinion of Counsel to the effect that such amendment or the
     exercise of any power granted to the Trustees in accordance with such
     amendment shall not affect the Trust's status as a grantor trust for United
     States federal income tax purposes or the Trust's exemption from status of
     an "investment company" under the Investment Company Act.

              (c)  In addition to and notwithstanding any other provision in
     this Trust Agreement, without the consent of each affected Securityholder
     (such consent being obtained in accordance with Section 603 or 606 hereof),
     this Trust Agreement may not be amended to (i) change the amount or timing
     of any Distribution on the Trust Securities or otherwise adversely affect
     the amount of any Distribution required to be made in respect of the Trust

                                      -48-
<PAGE>

     Securities as of a specified date; or (ii) restrict the right of a
     Securityholder to institute suit for the enforcement of any such payment on
     or after such date; notwithstanding any other provision herein, without the
     unanimous consent of the Securityholders (such consent being obtained in
     accordance with Section 603 or 606 hereof), this paragraph (c) of this
     Section 1002 may not be amended.

              (d)  Notwithstanding any other provisions of this Trust Agreement,
     no Trustee shall enter into or consent to any amendment to this Trust
     Agreement which would cause the Trust to fail or cease to qualify for the
     exemption from status of an "investment company" under the Investment
     Company Act or to fail or cease to be classified as a grantor trust for
     United States federal income tax purposes.

              (e)  Notwithstanding anything in this Trust Agreement to the
     contrary, without the consent of the Depositor, this Trust Agreement may
     not be amended in a manner which imposes any additional obligation on the
     Depositor.

              (f)  In the event that any amendment to this Trust Agreement is
     made, the Administrative Trustees shall promptly provide to the Depositor a
     copy of such amendment.

              (g)  Neither the Property Trustee nor the Delaware Trustee shall
     be required to enter into any amendment to this Trust Agreement which
     affects its own rights, duties or immunities under this Trust Agreement.
     The Property Trustee shall be entitled to receive an Opinion of Counsel and
     an Officers' Certificate stating that any amendment to this Trust Agreement
     is in compliance with this Trust Agreement.

     Section 1003. Separability.
                   ------------

     In case any provision in this Trust Agreement or in the Trust Securities
Certificates shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     Section 1004. Governing Law.
                   -------------

     THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE
SECURITYHOLDERS, THE TRUST AND THE TRUSTEES WITH RESPECT TO THIS TRUST AGREEMENT
AND THE TRUST SECURITIES SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES
THEREOF).

     Section 1005. Payments Due on Non-Business Day.
                   --------------------------------

     If the date fixed for any payment on any Trust Security shall be a day that
is not a Business Day, then such payment need not be made on such date but may
be made on the next succeeding day which is a Business Day, except that, if such
Business Day is in the next succeeding calendar year,

                                      -49-
<PAGE>

such payment shall be made on the immediately preceding Business Day (and
without any reduction of interest or any other payment in respect of any such
acceleration), in each case with the same force and effect as though made on the
date fixed for such payment, and no distribution shall accumulate thereon for
the period after such date.

     Section 1006. Successors.
                   ----------

     This Trust Agreement shall be binding upon and shall inure to the benefit
of any successor to the Depositor, the Trust or the Relevant Trustee(s),
including any successor by operation of law. Except in connection with a
consolidation, merger or sale involving the Depositor that is permitted under
Article XII of the Indenture and pursuant to which the assignee agrees in
writing to perform the Depositor's obligations hereunder, the Depositor shall
not assign its obligations hereunder.

     Section 1007.  Headings.
                    --------

     The Article and Section headings are for convenience only and shall not
affect the construction of this Trust Agreement.

     Section 1008. Reports, Notices and Demands.
                   ----------------------------

     Any report, notice, demand or other communication which by any provision of
this Trust Agreement is required or permitted to be given or served to or upon
any Securityholder or the Depositor may be given or served in writing by deposit
thereof, first-class postage prepaid, in the United States mail, hand delivery
or facsimile transmission, in each case, addressed, (a) in the case of a Trust
Preferred Securityholder, to such Trust Preferred Securityholder as such
Securityholder's name and address may appear on the Securities Register; and (b)
in the case of the Common Securityholder or the Depositor, to Paradigm
Bancorporation, Inc., 2828 FM 1960, Houston, Texas 77073, Attention: Peter E.
Fisher, facsimile no.: (281)443-6954.  Any notice to Trust Preferred
Securityholders shall also be given to such owners as have, within two years
preceding the giving of such notice, filed their names and addresses with the
Property Trustee for that purpose. Such notice, demand or other communication to
or upon a Securityholder shall be deemed to have been sufficiently given or
made, for all purposes, upon hand delivery, mailing or transmission.

     Any notice, demand or other communication which by any provision of this
Trust Agreement is required or permitted to be given or served to or upon the
Trust, the Property Trustee or the Administrative Trustees shall be given in
writing addressed (until another address is published by the Trust) as follows:
(a) with respect to the Property Trustee to First Union Trust Company, National
Association, One Rodney Square, 920 King Street, 1st Floor, Wilmington, Delaware
19801, Attention: Corporate Trust Administration; (b) with respect to the
Delaware Trustee, to First Union Trust Company, National Association at the
above address; and (c) with respect to the Administrative Trustees, to them at
the address above for notices to the Depositor, marked "Attention:
Administrative Trustees of Capital Trust." Such notice, demand or other
communication to or upon the Trust or the Property Trustee shall be deemed to
have been sufficiently given or made only upon actual receipt of the writing by
the Trust or the Property Trustee.

                                      -50-
<PAGE>

     Section 1009. Agreement not to Petition.
                   -------------------------

     Each of the Trustees and the Depositor agree for the benefit of the
Securityholders that, until at least one year and one day after the Trust has
been terminated in accordance with Article IX, they shall not file, or join in
the filing of, a petition against the Trust under any bankruptcy, insolvency,
reorganization or other similar law (including, without limitation, the United
States Bankruptcy Code of 1978, as amended) (collectively, "Bankruptcy Laws") or
otherwise join in the commencement of any proceeding against the Trust under any
Bankruptcy Law. In the event the Depositor or any of the Trustees takes action
in violation of this Section 1009, the Property Trustee agrees, for the benefit
of Securityholders, that at the expense of the Depositor (which expense shall be
paid prior to the filing), it shall file an answer with the bankruptcy court or
otherwise properly contest the filing of such petition by the Depositor or such
Trustee against the Trust or the commencement of such action and raise the
defense that the Depositor or such Trustee has agreed in writing not to take
such action and should be stopped and precluded therefrom. The provisions of
this Section 1009 shall survive the termination of this Trust Agreement.

     Section 1010. Trust Indenture Act; Conflict with Trust Indenture Act.
                   ------------------------------------------------------

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

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

              (c)  If any provision hereof limits, qualifies or conflicts with
     another provision hereof which is required to be included in this Trust
     Agreement by any of the provisions of the Trust Indenture Act, such
     required provision shall control. If any provision of this Trust Agreement
     modifies or excludes any provision of the Trust Indenture Act which may be
     so modified or excluded, the latter provision shall be deemed to apply to
     this Trust Agreement as so modified or to be excluded, as the case may be.
     The application of the Trust Indenture Act to this Trust Agreement shall
     not affect the nature of the Securities as equity securities representing
     undivided beneficial interests in the assets of the Trust.

     Section 1011. Acceptance of Terms of Trust Agreement, Guarantee and
                   -----------------------------------------------------
                   Indenture.
                   ---------

     THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST THEREIN BY
OR ON BEHALF OF A SECURITYHOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE
OR FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL
ACCEPTANCE BY THE SECURITYHOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN
SUCH TRUST SECURITY OF ALL THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT AND
AGREEMENT TO THE SUBORDINATION PROVISIONS AND OTHER TERMS OF THE GUARANTEE AND
THE INDENTURE, AND SHALL CONSTITUTE THE AGREEMENT OF THE TRUST, SUCH

                                      -51-
<PAGE>

SECURITYHOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS TRUST
AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE TRUST AND
SUCH SECURITYHOLDER AND SUCH OTHERS.

                           [SIGNATURE PAGE FOLLOWS]

                                      -52-
<PAGE>

     This Amended and Restated Trust Agreement is executed as of the day and
year first above written.

                             PARADIGM BANCORPORATION, INC.

                             By:  /s/ Peter E. Fisher
                                  -----------------------------
                                  Peter E. Fisher
                                  President

                             FIRST UNION TRUST COMPANY,
                              NATIONAL ASSOCIATION, as Property
                              Trustee

                             By:  /s/ Edward L. Truitt, Jr.
                                  -----------------------------
                                      Edward L. Truitt, Jr.
                                      Vice President

                             FIRST UNION TRUST COMPANY,
                              NATIONAL ASSOCIATION, as Delaware
                              Trustee

                             By:  /s/ Edward L. Truitt, Jr.
                                  -----------------------------
                                      Edward L. Truitt, Jr.
                                      Vice President

                             /s/ William H. Fagan M.D.
                             ----------------------------------
                             William H. Fagan, M.D., As Administrative Trustee

                             /s/ Peter E. Fisher
                             ----------------------------------
                             Peter E. Fisher, As Administrative Trustee

                             /s/ Jay W. Porter, Jr.
                             ----------------------------------
                             Jay W. Porter, Jr., As Administrative Trustee
<PAGE>

                                   EXHIBIT A

                             CERTIFICATE OF TRUST
                                      OF
                           PARADIGM CAPITAL TRUST I

     THIS CERTIFICATE OF TRUST OF Paradigm Capital Trust I (the "Trust"), dated
November 24, 1999, is being duly executed and filed by First Union Trust
Company, National Association, a national banking association, William H. Fagan,
M.D., Peter E. Fisher, and Jay W. Porter, Jr.,  each an individual, as trustees,
to form a business trust under the Delaware Business Trust Act (12 Del. C.
                                                                   -------
Section 3801 et seq.)(the "Act").
             ------

          1.  NAME. The name of the business trust formed hereby is Paradigm
     Capital Trust I.

          2.  DELAWARE TRUSTEE. The name and business address of the trustee of
     the Trust in the State of Delaware is First Union Trust Company, National
     Association, One Rodney Square, 920 King Street, Wilmington, Delaware
     19801, Attention:  Corporate Trust Administration.

          3.  EFFECTIVE DATE.  This Certificate of Trust will be effective upon
     filing.

     IN WITNESS WHEREOF, the undersigned have executed this Certificate of Trust
in accordance with Section 3811(a)(1) of the Act.

                                   FIRST UNION TRUST COMPANY,
                                   NATIONAL ASSOCIATION, as Delaware
                                   trustee

                                   By: _________________________________________
                                        Edward L. Truitt, Jr.
                                        Vice President

                                   _____________________________________________
                                   William H. Fagan, M.D.,
                                   as Administrative Trustee

                                   _____________________________________________
                                   Peter E. Fisher, as Administrative Trustee

                                   _____________________________________________
                                   Jay W. Porter, Jr., as Administrative Trustee

                                      A-1
<PAGE>

                                   EXHIBIT B

                     THIS CERTIFICATE IS NOT TRANSFERABLE

Certificate Number 1   Number of Common Securities16,000

                   Certificate Evidencing Common Securities

                                      of

                           Paradigm Capital Trust I

                               Common Securities

                 (liquidation amount $10 per Common Security)

     PARADIGM CAPITAL TRUST I, a statutory business trust created under the laws
of the State of Delaware (the "Trust"), hereby certifies that PARADIGM
BANCORPORATION, INC. (the "Holder") is the registered owner of sixteen thousand
(16,000) common securities of the Trust representing undivided beneficial
interests in the assets of the Trust and designated the 10.375% Common
Securities (liquidation amount $10 per Common Security) (the "Common
Securities"). In accordance with Section 510 of the Trust Agreement (as defined
below), the Common Securities are not transferable and any attempted transfer
hereof shall be void.  The designations, rights, privileges, restrictions,
preferences, and other terms and provisions of the Common Securities are set
forth in, and this certificate and the Common Securities represented hereby are
issued and shall in all respects be subject to the terms and provisions of, the
Amended and Restated Trust Agreement of the Trust dated as of, December 1, 1999,
as the same may be amended from time to time (the "Trust Agreement"), including
the designation of the terms of the Common Securities as set forth therein. The
Trust shall furnish a copy of the Trust Agreement to the Holder without charge
upon written request to the Trust at its principal place of business or
registered office.

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

     IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has
executed this certificate this 1st day of December, 1999.

                                    Paradigm Capital Trust I

                                    By:________________________________________
                                    Name: Peter E. Fisher
                                    Title: Administrative Trustee

                                      B-1
<PAGE>

                                   EXHIBIT C

                   AGREEMENT AS TO EXPENSES AND LIABILITIES

     AGREEMENT AS TO EXPENSES AND LIABILITIES (this "Agreement") dated as of
December 1, 1999, between PARADIGM BANCORPORATION, INC., a Texas corporation
(the "Company"), and PARADIGM CAPITAL TRUST I, a Delaware business trust (the
"Trust").

                                   RECITALS

     WHEREAS, the Trust intends to issue its common securities (the "Common
Securities") to, and receive 10.375% Subordinated Debentures (the "Debentures")
from, the Company and to issue and sell Paradigm Capital Trust I 10.375%
Cumulative Trust Preferred Securities (the "Trust Preferred Securities") with
such powers, preferences and special rights and restrictions as are set forth in
the Amended and Restated Trust Agreement of the Trust dated as of December 1,
1999, as the same may be amended from time to time (the "Trust Agreement");

     WHEREAS, the Company shall directly or indirectly own all of the Common
Securities of the Trust and shall issue the Debentures;

     NOW, THEREFORE, in consideration of the purchase by each holder of the
Trust Preferred Securities, which purchase the Company hereby agrees shall
benefit the Company and which purchase the Company acknowledges shall be made in
reliance upon the execution and delivery of this Agreement, the Company,
including in its capacity as holder of the Common Securities, and the Trust
hereby agree as follows:

                                   ARTICLE I

     Section 1.1  Guarantee by the Company.
                  ------------------------

     Subject to the terms and conditions hereof, the Company, including in its
capacity as holder of the Common Securities, hereby irrevocably and
unconditionally guarantees to each person or entity to whom the Trust is now or
hereafter becomes indebted or liable (the "Beneficiaries") the full payment when
and as due, of any and all Obligations (as hereinafter defined) to such
Beneficiaries. As used herein, "Obligations" means any costs, expenses or
liabilities of the Trust other than obligations of the Trust to pay to holders
of any Trust Preferred Securities or other similar interests in the Trust the
amounts due such holders pursuant to the terms of the Trust Preferred Securities
or such other similar interests, as the case may be. This Agreement is intended
to be for the benefit of, and to be enforceable by, all such Beneficiaries,
whether or not such Beneficiaries have received notice hereof.

                                      C-1
<PAGE>

     Section 1.2  Term of Agreement.
                  -----------------

     This Agreement shall terminate and be of no further force and effect upon
the later of (a) the date on which full payment has been made of all amounts
payable to all holders of all the Trust Preferred Securities (whether upon
redemption, liquidation, exchange or otherwise); and (b) the date on which there
are no Beneficiaries remaining; provided, however, that this Agreement shall
continue to be effective or shall be reinstated, as the case may be, if at any
time any holder of Trust Preferred Securities or any Beneficiary must restore
payment of any sums paid under the Trust Preferred Securities, under any
obligation, under the Trust Preferred Securities Guarantee Agreement dated the
date hereof by the Company and First Union Trust Company, National Association,
as guarantee trustee or under this Agreement for any reason whatsoever. This
Agreement is continuing, irrevocable, unconditional and absolute.

     Section 1.3  Waiver of Notice.
                  ----------------

     The Company hereby waives notice of acceptance of this Agreement and of any
obligation to which it applies or may apply, and the Company hereby waives
presentment, demand for payment, protest, notice of nonpayment, notice of
dishonor, notice of redemption and all other notices and demands.

     Section 1.4  No Impairment.
                  -------------

     The obligations, covenants, agreements and duties of the Company under this
Agreement shall in no way be affected or impaired by reason of the happening
from time to time of any of the following:

             (a)  the extension of time for the payment by the Trust of all or
     any portion of the obligations or for the performance of any other
     obligation under, arising out of, or in connection with, the obligations;

             (b)  any failure, omission, delay or lack of diligence on the part
     of the Beneficiaries to enforce, assert or exercise any right, privilege,
     power or remedy conferred on the Beneficiaries with respect to the
     obligations or any action on the part of the Trust granting indulgence or
     extension of any kind; or

             (c)  the voluntary or involuntary liquidation, dissolution, sale of
     any collateral, receivership, insolvency, bankruptcy, assignment for the
     benefit of creditors, reorganization, arrangement composition or
     readjustment of debt of, or other similar proceedings affecting, the Trust
     or any of the assets of the Trust. There shall be no obligation of the
     Beneficiaries to give notice to, or obtain the consent of, the Company with
     respect to the happening of any of the foregoing.

                                      C-2
<PAGE>

     Section 1.5  Enforcement.
                  -----------

     A Beneficiary may enforce this Agreement directly against the Company, and
the Company waives any right or remedy to require that any action be brought
against the Trust or any other person or entity before proceeding against the
Company.

                                  ARTICLE II

     Section 2.1  Binding Effect.
                  --------------

     All guarantees and agreements contained in this Agreement shall bind the
successors, assigns, receivers, trustees and representatives of the Company and
shall inure to the benefit of the Beneficiaries.

     Section 2.2  Amendment.
                  ---------

     So long as there remains any Beneficiary or any Trust Preferred Securities
of any series are outstanding, this Agreement shall not be modified or amended
in any manner adverse to such Beneficiary or to any of the holders of the Trust
Preferred Securities.

     Section 2.3  Notices.
                  -------

     Any notice, request or other communication required or permitted to be
given hereunder shall be given in writing by delivering the same by facsimile
transmission (confirmed by mail), telex, or by registered or certified mail,
addressed as follows (and if so given, shall be deemed given when mailed or upon
receipt of an answer back, if sent by telex):

Paradigm Capital Trust I
c/o Paradigm Bancorporation, Inc.
2828 FM 1960
Houston, Texas 77073
Facsimile No.: (281)443-6954
Attention: Peter E. Fisher, Administrative Trustee

Paradigm Bancorporation, Inc.
2828 FM 1960
Houston, Texas 77073
Facsimile No.: (281)443-6954
Attention: Peter E. Fisher, President

     Section 2.4  This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of Delaware (without regard
to conflict of laws principles).

                                      C-3
<PAGE>

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

                                    PARADIGM BANCORPORATION, INC.

                                    By: _______________________________________
                                         Peter E. Fisher
                                         President

                                    PARADIGM CAPITAL TRUST I

                                    By: _______________________________________
                                         Peter E. Fisher
                                         Administrative Trustee

                                      C-4
<PAGE>

                                   EXHIBIT D

Certificate Number __________    Number of Trust Preferred Securities __________

               Certificate Evidencing Trust Preferred Securities

                                      of

                           Paradigm Capital Trust I

                 10.375% Cumulative Trust Preferred Securities

             (liquidation amount $10 per Trust Preferred Security)

     Paradigm Capital Trust I, a statutory business trust created under the laws
of the State of Delaware (the "Trust"), hereby certifies that _________________
(the "Holder") is the registered owner of _________ preferred securities of the
Trust representing undivided beneficial interests in the assets of the Trust and
designated the 10.375% Cumulative Trust Preferred Securities (liquidation amount
$10 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 as provided in Section 504 of the Trust
Agreement (as defined herein). The designations, rights, privileges,
restrictions, preferences, and other terms and provisions of the Trust Preferred
Securities are set forth in, and this certificate and the Trust Preferred
Securities represented hereby are issued and shall in all respects be subject to
the terms and provisions of, the Amended and Restated Trust Agreement of the
Trust dated as of December 1, 1999, as the same may be amended from time to time
(the "Trust Agreement"), including the designation of the terms of Trust
Preferred Securities as set forth therein. The Holder is entitled to the
benefits of the Trust Preferred Securities Guarantee Agreement entered into by
Paradigm Bancorporation, Inc., a Texas corporation, and First Union Trust
Company, National Association, as guarantee trustee, dated as of December 1,
1999, as the same may be amended from time to time (the "Guarantee"), to the
extent provided therein. The Trust shall furnish a copy of the Trust Agreement
and the Guarantee to the Holder without charge upon written request to the Trust
at its principal place of business or registered office.

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

                                      D-1
<PAGE>

     Unless the Certificate of Authentication has been manually executed by the
Authentication Agent, this certificate is not valid or effective.

     IN WITNESS WHEREOF, the Administrative Trustees of the Trust have executed
this Certificate this 1st day of December, 1999.

                                    PARADIGM CAPITAL TRUST I

                                    By: ________________________________________
                                         William H. Fagan, M.D., as
                                         Administrative Trustee

                                    By: ________________________________________
                                         Peter E. Fisher, as
                                         Administrative Trustee

                                    By: /s/ Jay W. Porter, Jr.
                                       ----------------------------------
                                         Jay W. Porter, Jr., as
                                         Administrative Trustee

                                      D-2
<PAGE>

                        FORM OF REVERSE OF CERTIFICATE

     The Trust will furnish without charge to any registered owner of Trust
Preferred Securities who so requests, a copy of the Trust Agreement and the
Guarantee. Any such request should be in writing and addressed to Paradigm
Capital Trust I, c/o Paradigm Bancorporation, Inc., 2828 FM 1960, Houston, Texas
77073 or to the Registrar named on the face of this Certificate.

     The following abbreviations, when used in the inscription on the face of
this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

     TEN CON  -  as tenants in common
     TEN ENT  -  as tenants in the entireties
     JT TEN   -  as joint tenants with right of survival
     UNIF GIFT MIN ACT  -  under Uniform Gift to Minors Act and not as tenants
     Additional abbreviations may also be used though not in the above list.

                                  ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto:

________________________________________________________________________________

________________________________________________________________________________
    (Please insert social security or other identifying number of assignee)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
                   (insert address and zip code of assignee)

                                      -1-
<PAGE>

the within Certificate and all rights and interests represented by the Trust
Preferred Securities evidenced thereby, and hereby irrevocably constitutes and
appoints attorney to transfer the said Trust Preferred Securities on the books
of the within-named Trust with full power of substitution in the premises.

Dated:________________              Signature:__________________________________

                                    Note:  The signature(s) to this assignment
                                    must correspond with the name(s) as written
                                    upon the face of this Certificate in every
                                    particular, without alteration or
                                    enlargement, or any change whatever.

Signature(s) Guaranteed:

NOTICE: Signature(s) must be guaranteed by an "eligible guarantor institution"
that is a member or participant in a "signature guarantee program" (i.e., the
Securities Transfer Agents Medallion Program, the Stock Exchange Medallion
Program or the New York Stock Exchange, Inc. Medallion Signature Program).

                                      -2-
<PAGE>

                                   EXHIBIT E

                     FORM OF CERTIFICATE OF AUTHENTICATION

     This is one of the 10.375% Cumulative Trust Preferred Securities referred
to in the within-mentioned Amended and Restated Trust Agreement.

                                    FIRST UNION TRUST COMPANY,
                                    NATIONAL ASSOCIATION, as
                                    Authentication Agent and Registrar

                                    By:_________________________________
                                         AUTHORIZED SIGNATURE

                                      E-1

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