Document:

EXHIBIT 4.2

                       AMENDED AND RESTATED DECLARATION

                                   OF TRUST

                          Hallmark Statutory Trust I

                          Dated as of June 21, 2005

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                              TABLE OF CONTENTS
                                                                        Page
                                                                        ----
                                  ARTICLE I
                        INTERPRETATION AND DEFINITIONS

 SECTION 1.1.   Definitions.....................................          1

                                  ARTICLE II
                                 ORGANIZATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                 ARTICLE III
                                   SPONSOR

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

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

                                  ARTICLE IV
                         TRUSTEES AND ADMINISTRATORS

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

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

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

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

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

 SECTION 4.6.   Initial Delaware Trustee........................         25

 SECTION 4.7.   Appointment, Removal and Resignation of the
                Trustees and the Administrators.................         25

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

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

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

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

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

                                  ARTICLE V
                                DISTRIBUTIONS

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

                                  ARTICLE VI
                            ISSUANCE OF SECURITIES

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

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

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

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

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

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

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

                                 ARTICLE VII
                     DISSOLUTION AND TERMINATION OF TRUST

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

                                 ARTICLE VIII
                            TRANSFER OF INTERESTS

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

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

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

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

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

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

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

 SECTION 9.4.   Indemnification.................................         39

 SECTION 9.5.   Outside Businesses..............................         42

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

                                  ARTICLE X
                                  ACCOUNTING

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

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

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

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

                                  ARTICLE XI
                           AMENDMENTS AND MEETINGS

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

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

                                 ARTICLE XII
        REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

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

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

                                 ARTICLE XIII
                                MISCELLANEOUS

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

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

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

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

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

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

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

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

 ANNEXES AND EXHIBITS

 ANNEX I        Terms of Capital Securities and Common Securities

 EXHIBIT A-1    Form of Capital Security Certificate
 EXHIBIT A-2    Form of Common Security Certificate
 EXHIBIT B      Form of Transferee Certificate to be Executed
                by Accredited Investors
 EXHIBIT C      Form of Transferor Certificate to be Executed
                for QIBs
 EXHIBIT D      Form of Transferor Certificate to be Executed
                in connection with an "Offshore Transaction"

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                  AMENDED AND RESTATED DECLARATION OF TRUST

                                      OF

                          Hallmark Statutory Trust I

                                June 21, 2005

      AMENDED AND RESTATED DECLARATION  OF TRUST (this "Declaration"),  dated
 and effective as of June 21, 2005, by the Trustees (as defined herein),  the
 Administrators (as defined herein), the Sponsor (as defined herein) and  the
 holders from time to time of undivided beneficial interests in the assets of
 the Trust (as defined herein) to be issued pursuant to this Declaration.

      WHEREAS, the  Delaware Trustee  and  the Sponsor  established  Hallmark
 Statutory Trust I (the "Trust"), a statutory trust under the Statutory Trust
 Act (as defined  herein), pursuant to  a Declaration of  Trust, dated as  of
 June 13, 2005 (the "Original Declaration"), and a Certificate of Trust filed
 with the Secretary of State of the State  of Delaware on June 13, 2005,  for
 the sole  purpose of  issuing and  selling certain  securities  representing
 undivided beneficial interests in the assets of the Trust and investing  the
 proceeds thereof in certain debentures of  the Debenture Issuer (as  defined
 herein);

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

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

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

                                  ARTICLE I
                        INTERPRETATION AND DEFINITIONS

     SECTION 1.1. Definitions.  Unless the context otherwise requires:

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

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

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

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

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

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

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

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

      "Administrators" means each of Mark Schwartz and Mark Morrison,  solely
 in such Person's capacity as Administrator of the Trust continued  hereunder
 and not  in  such  Person's individual  capacity,  or  such  Administrator's
 successor in interest in such capacity, or any successor appointed as herein
 provided.

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

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

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

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

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

      "Business Day" means any day other  than Saturday, Sunday or any  other
 day on which banking institutions in Wilmington, Delaware, New York City  or
 the city  of  the  Principal  Office  of the  Trustee  (as  defined  in  the
 Indenture) are  permitted or  required by  any applicable  law or  executive
 order to close.

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

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

      "Capital Securities Purchase  Agreement" means  the Capital  Securities
 Purchase Agreement dated as of  June  21, 2005 among the Trust, the  Sponsor
 and Merrill Lynch International.

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

      "Certificate" means any certificate evidencing Securities.

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

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

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

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

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

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

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

      "Corporate Trust Office" means the office of the Institutional  Trustee
 at which the corporate trust business of the Institutional Trustee shall, at
 any particular time, be principally administered, which office shall at  all
 times be located in the United States and  at the date of execution of  this
 Declaration is  located at  600 Travis  Street, 50th  Floor, Houston,  Texas
 77002, Attention: Worldwide Securities Services, Hallmark Statutory Trust I.

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

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

      "Debenture   Issuer"   means   Hallmark   Financial   Services,   Inc.,
 incorporated in Nevada, in  its capacity as issuer  of the Debentures  under
 the Indenture.

      "Debenture Trustee" means  JPMorgan Chase  Bank, National  Association,
 not in its individual  capacity but solely as  trustee under the  Indenture,
 until a  successor  is  appointed  thereunder  and  thereafter,  means  such
 successor trustee.

      "Debentures" means the Junior Subordinated Debt Securities due June 15,
 2035 to be issued by the Debenture Issuer under the Indenture.

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

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

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

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

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

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

      "Distribution Period" has the  meaning set forth  in Paragraph 2(a)  of
 Annex I.

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

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

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

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

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

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

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

      "Guarantee" means the Guarantee Agreement, dated  as of June 21,  2005,
 between  the  Sponsor,  as  Guarantor  and  JPMorgan  Chase  Bank,  National
 Association, as Guarantee Trustee in respect of the Capital Securities.

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

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

      "Indenture" means the Indenture, dated as  of June 21, 2005, among  the
 Debenture Issuer and the Debenture  Trustee, and any indenture  supplemental
 thereto pursuant to which the Debentures are to be issued.

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

      "Initial Securities" has the meaning set forth in Section 8.4.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      "Placement Agreement"  means the  Placement Agreement,  dated June  21,
 2005 among the Sponsor, the Trust and Cohen Bros. & Company relating to  the
 offering and sale of Capital Securities.

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

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

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

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

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

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

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

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

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

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

      "Resale Restriction  Termination  Date"  means,  with  respect  to  any
 Capital Security, the  date which is  the later of  (i) two  years (or  such
 shorter period of time as permitted by Rule 144(k) under the Securities Act)
 after the  later  of (y)  the  date of  original  issuance of  such  Capital
 Security and (z) the last date  on which the Trust  or any Affiliate of  the
 Trust was the Holder of such  Capital Security (or any predecessor  thereto)
 and (ii) such  later date,  if any,  as may  be required  by any  subsequent
 change in applicable law.

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

      "Restricted Securities Legend"  has the  meaning set  forth in  Section
 8.2(c).

      "Rule 144A" means Rule 144A under the Securities Act.

      "Rule 3a-5" means Rule 3a-5 under the Investment Company Act. "Rule 3a-
 7" means Rule 3a-7 under the Investment Company Act.

      "Securities" means  the Common  Securities and  the Capital  Securities
 collectively.

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

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

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

      "Sponsor" means Hallmark Financial  Services, Inc., a corporation  that
 is a  U.S. Person  incorporated in  Nevada,  or any  successor entity  in  a
 merger, consolidation or amalgamation that is a U.S. Person, in its capacity
 as sponsor of the Trust.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                 ARTICLE II
                                ORGANIZATION

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

     SECTION 2.2.  Office.  The address of the principal office of the Trust,
 which  shall be in a state of the United States or the District of Columbia,
 is 777 Main Street, Suite 1000, Fort Worth, TX 76102.  On ten Business Days'
 written  notice  to  the  Institutional  Trustee  and  the  Holders  of  the
 Securities, the Administrators may designate another principal office, which
 shall be in a state of the United States or the District of Columbia.

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

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

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

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

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

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

                     (A) the issuance and sale of the Securities;

                     (B) to  acquire the Debentures with  the proceeds of the
                sale  of  the   Securities;  provided,   however,  that   the
                Administrators shall cause legal  title to the Debentures  to
                be held of record  in the name  of the Institutional  Trustee
                for the benefit of the Holders;

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

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

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

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

                     (G) the  appointment of  a Paying  Agent, Transfer Agent
                and Registrar in accordance with this Declaration;

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

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

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

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

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

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

                     (N) to  negotiate the  terms of,  and the  execution and
                delivery  of,  the  Placement   Agreement  and  the   Capital
                Securities Purchase Agreement  related thereto providing  for
                the sale of the Capital Securities;

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

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

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

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

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

                     (A) the establishment of the Property Account;

                     (B) the receipt of the Debentures;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     SECTION 2.8. Powers and Duties of the Institutional Trustee.

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

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

           (c) The Institutional Trustee shall:

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

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

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

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

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

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

                (i) the Trust has been completely liquidated and the proceeds
           of the liquidation  distributed to the  Holders of the  Securities
           pursuant to  the  terms of  the  Securities and  this  Declaration
           (including Annex I) and the certificate of cancellation referenced
           in Section 7.1(b) has been filed; or

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

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

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

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

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

           (b) The  duties  and  responsibilities  of  the  Trustees  and the
 Administrators shall be as provided by this Declaration and, in the case  of
 the Institutional Trustee, by the  Trust Indenture Act. Notwithstanding  the
 foregoing, no provision  of this Declaration  shall require  any Trustee  or
 Administrator to  expend  or risk  its  own  funds or  otherwise  incur  any
 financial liability in the performance of any of its duties hereunder, or in
 the exercise of any  of its rights  or powers, if  it shall have  reasonable
 grounds for believing  that repayment of  such funds  or adequate  indemnity
 satisfactory to it against such risk or liability is not reasonably  assured
 to it. Whether or not therein expressly so provided, every provision of this
 Declaration relating  to  the  conduct or  affecting  the  liability  of  or
 affording protection to the Trustees or the Administrators shall be  subject
 to the provisions  of this  Article. Nothing  in this  Declaration shall  be
 construed to release a Trustee from liability for its own negligent  action,
 its own  negligent failure  to act,  or its  own willful  misconduct or  bad
 faith. Nothing  in  this  Declaration  shall  be  construed  to  release  an
 Administrator from liability  for its own  gross negligent  action, its  own
 gross negligent failure to act, or its own willful misconduct or bad  faith.
 To the extent that, at law or in  equity, a Trustee or an Administrator  has
 duties and liabilities relating to the Trust or to the Holders, such Trustee
 or Administrator shall not be liable to the Trust or to any Holder for  such
 Trustee's or Administrator's good faith reliance  on the provisions of  this
 Declaration. The provisions  of this Declaration,  to the  extent that  they
 restrict the duties and  liabilities of the  Administrators or the  Trustees
 otherwise existing at law or  in equity, are agreed  by the Sponsor and  the
 Holders to replace such other duties  and liabilities of the  Administrators
 or the Trustees.

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

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

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

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

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

                (iv) the  Institutional Trustee shall  not be  liable for any
           interest on any money  received by it except  as it may  otherwise
           agree  in  writing  with  the  Sponsor;  and  money  held  by  the
           Institutional Trustee need not be segregated from other funds held
           by it except in relation to the Property Account maintained by the
           Institutional Trustee pursuant to Section 2.8(c)(i) and except  to
           the extent otherwise required by law; and

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

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

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

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

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

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

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

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

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

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

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

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

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

           (l) when  the  Institutional  Trustee incurs  expenses  or renders
 services in connection with a Bankruptcy Event, such expenses (including the
 fees and expenses of its counsel) and the compensation for such services are
 intended to constitute expenses of  administration under any bankruptcy  law
 or law relating to creditors rights generally;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                 ARTICLE III
                                   SPONSOR

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

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

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

           (b) to prepare  for filing and request the Administrators to cause
 the filing by the  Trust, as may  be appropriate, of  an application to  the
 PORTAL system,  for listing  or quotation  upon notice  of issuance  of  any
 Capital Securities, as requested by the Holders of a Majority in liquidation
 amount of the Capital Securities; and

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

                                 ARTICLE IV
                         TRUSTEES AND ADMINISTRATORS

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

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

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

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

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

           (b) if  not a natural  person, an entity  which is organized under
 the laws  of the  United States  or any  state thereof  or the  District  of
 Columbia, has its principal place of business in the State of Delaware,  and
 otherwise meets the requirements of applicable  law, including S3807 of  the
 Statutory Trust Act.

     SECTION 4.3.  Institutional Trustee; Eligibility.

           (a) There  shall at all  times be one  Trustee which  shall act as
 Institutional Trustee which shall:

                (i) not be an Affiliate of the Sponsor;

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

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

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

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

           (d) The  initial  Institutional  Trustee shall  be  JPMorgan Chase
 Bank, National Association.

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

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

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

     SECTION 4.6.  Initial  Delaware  Trustee.  The  initial Delaware Trustee
 shall be Chase Bank USA, National Association.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                  ARTICLE V
                                DISTRIBUTIONS

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

                                 ARTICLE VI
                            ISSUANCE OF SECURITIES

     SECTION 6.1.  General Provisions Regarding Securities.

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

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

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

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

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

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

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

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

     SECTION 6.3.  Form and Dating.

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

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

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

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

           (b) there shall  be delivered to the Registrar, the Administrators
 and the Institutional Trustee such security or indemnity as may be  required
 by them to hold each of them harmless;  then, in the absence of notice  that
 such Certificate  shall have  been acquired  by a  bona fide  purchaser,  an
 Administrator on behalf of  the Trust shall  execute (and in  the case of  a
 Capital Security Certificate, the Institutional Trustee shall  authenticate)
 and deliver, in exchange  for or in lieu  of any such mutilated,  destroyed,
 lost or  stolen Certificate,  a new  Certificate  of like  denomination.  In
 connection with the issuance of any new Certificate under this Section  6.4,
 the Registrar  or  the Administrators  may  require  the payment  of  a  sum
 sufficient to cover any tax or other governmental charge that may be imposed
 in connection therewith. Any duplicate  Certificate issued pursuant to  this
 Section shall constitute conclusive evidence of an ownership interest in the
 relevant Securities,  as if  originally issued,  whether  or not  the  lost,
 stolen or destroyed Certificate shall be found at any time.

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

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

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

           (a) The legal title to the Trust Property is vested exclusively in
 the Institutional  Trustee (in  its capacity  as  such) in  accordance  with
 Section 2.6(g), and the  Holders shall not have  any right or title  therein
 other than the  undivided beneficial  interest in  the assets  of the  Trust
 conferred by their Securities and they shall  have no right to call for  any
 partition or division of property, profits or rights of the Trust except  as
 described below. The Securities shall be  personal property giving only  the
 rights  specifically  set  forth  therein  and  in  this  Declaration.   The
 Securities shall have no,  and the issuance of  the Securities shall not  be
 subject to, preemptive or other similar rights and when issued and delivered
 to Holders against payment  of the purchase  price therefor, the  Securities
 will be fully paid and nonassessable by the Trust.

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

           (c) At  any  time  after  the  acceleration  of  maturity  of  the
 Debentures has been made and before a judgment or decree for payment of  the
 money due has  been obtained  by the Debenture  Trustee as  provided in  the
 Indenture, if the Institutional Trustee,  subject to the provisions  hereof,
 fails to annul any such acceleration and waive such default, the Holders  of
 a Majority  in liquidation  amount of  the  Capital Securities,  by  written
 notice to the Institutional Trustee, the Sponsor and the Debenture  Trustee,
 may rescind and annul such acceleration and its consequences if:

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

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

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

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

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

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

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

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

           (f) Except as  otherwise provided in this Section 6.7, the Holders
 of a Majority in liquidation amount of the Capital Securities may, on behalf
 of the Holders  of all  the Capital Securities,  waive any  past default  or
 Event of Default and its consequences. Upon such waiver, any such default or
 Event of Default shall cease to exist,  and any default or Event of  Default
 arising therefrom shall be deemed to  have been cured, for every purpose  of
 this Declaration, but no such waiver shall extend to any subsequent or other
 default or Event of Default or impair any right consequent thereon.

                                 ARTICLE VII
                     DISSOLUTION AND TERMINATION OF TRUST

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

                (i) unless  earlier  dissolved,   on  June   15,  2040,   the
           expiration of the term of the Trust;

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

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

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

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

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

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

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

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

                                ARTICLE VIII
                            TRANSFER OF INTERESTS

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

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

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

           (d) The Registrar shall provide in the Securities Register for the
 registration of Securities  and of transfers  of Securities,  which will  be
 effected without charge but  only upon payment (with  such indemnity as  the
 Registrar  may  reasonably  require)  in  respect   of  any  tax  or   other
 governmental charges  that may  be imposed  in  relation to  it.   Upon  its
 receipt of the documents required under this Section 8.1(d) for registration
 of  transfer  of  any  Securities,  the  Registrar  shall  register  in  the
 Securities  Register,  in   the  name  of   the  designated  transferee   or
 transferees,  the  Securities  being  transferred  and  thereupon,  for  all
 purposes of  this Declaration,  such transfer  shall be  effective and  such
 transferee or transferees shall be, and such transferor shall no longer  be,
 the Holder of the transferred Securities.  Upon the registration of transfer
 of a Security pursuant to the terms of  this Declaration in the name of  the
 new Holder thereof, such Security shall constitute the same Security as  the
 Security so transferred  and shall be  entitled to the  same benefits  under
 this Declaration as the Security so  transferred.  The Registrar shall,  and
 is authorized  to,  record  and register  in  the  Securities  Register  the
 transfer of a Security upon the  Registrar's receipt of originals or  copies
 (which may be by  facsimile or other form  of electronic transmission) of  a
 written instrument  of  transfer  in form  reasonably  satisfactory  to  the
 Registrar duly  executed  by  the Holder  or  such  Holder's  attorney  duly
 authorized in writing,  accompanied, if such  Security is being  transferred
 prior to the Resale  Restriction Termination Date  other than in  accordance
 with Section 8.4, by  a certificate substantially in  the form set forth  as
 Exhibit B, C  or D,  as applicable, hereto,  executed by  the transferor  or
 transferee, as applicable; thereupon, the Registrar is authorized to confirm
 in writing to the  transferee of such Security  that such transfer has  been
 registered in the Securities Register and that such transferee is the Holder
 of such Security.  The Certificate  evidencing the Security so  transferred,
 duly endorsed by the  transferor, shall be surrendered  to the Registrar  at
 the time  the transfer  conditions specified  in the  immediately  preceding
 sentence are satisfied or within five (5) Business Days after the  Registrar
 has registered the transfer of such Security on the Securities Register, and
 promptly after such surrender, the Trust shall execute and, in the case of a
 Capital Security  Certificate,  the  Institutional  Trustee  shall,  and  is
 authorized to, authenticate a Certificate in  the name of the transferee  as
 the new Holder  of the Security  evidenced thereby.   Until the  Certificate
 evidencing the Security so transferred is surrendered to the Registrar, such
 Security may  not be  transferred  by such  new  Holder.   Each  Certificate
 surrendered in connection with a registration of transfer shall be  canceled
 by the Institutional  Trustee pursuant to  Section 6.6.   A transferee of  a
 Security shall be entitled to the rights and subject to the obligations of a
 Holder hereunder upon the  registration of such  transfer in the  Securities
 Register.  Each such transferee shall be  deemed to have agreed to be  bound
 by this Declaration.

           (e) Neither  the Trust nor the Registrar  shall be required (i) to
 issue, register the transfer of, or exchange any Securities during a  period
 beginning at the opening of business 15 days before the day of any selection
 of Securities for  redemption and  ending at the  close of  business on  the
 earliest date on which the relevant  notice of redemption is deemed to  have
 been given to  all Holders  of the  Securities to  be redeemed,  or (ii)  to
 register the transfer or exchange of any Security so selected for redemption
 in whole or  in part, except  the unredeemed portion  of any Security  being
 redeemed in part.

     SECTION 8.2.  Transfer Procedures and Restrictions.

           (a) Prior to the Resale Restriction Termination Date, Certificates
 evidencing  Capital Securities shall  bear the Restricted Securities  Legend
 (as defined below), which shall not be removed unless there is delivered  to
 the Trust  such  satisfactory evidence,  which  may include  an  opinion  of
 counsel, reasonably acceptable to  the Administrators and the  Institutional
 Trustee, as may  be reasonably required  by the Trust  or the  Institutional
 Trustee, that neither the Restricted Securities Legend nor the  restrictions
 on transfer set forth therein are required to ensure that transfers  thereof
 comply with the provisions of the Securities Act or that such Securities are
 not "restricted" within the  meaning of Rule 144  under the Securities  Act.
 Upon provision of such satisfactory evidence, the Institutional Trustee,  at
 the written direction of the Administrators, shall authenticate and  deliver
 Capital Securities that do not bear the Restricted Securities Legend  (other
 than the legend contemplated by Section 8.2(d).

           (b) Prior  to  the Resale  Restriction  Date, without  the written
 consent of Sponsor, Capital Securities may  only be transferred as  follows:
 (i) to a "Qualified  Institutional Buyer" (within the  meaning of Rule  144A
 under the Securities Act) if accompanied by a certificate of the  transferor
 substantially in  the  form  set forth  as  Exhibit  C hereto;  (ii)  to  an
 "accredited investor" within the meaning of Rule 501(a)(1), (2), (3), (7) or
 (8) under  the  Securities  Act  if accompanied  by  a  certificate  of  the
 transferee substantially in the form set forth as Exhibit B hereto; or (iii)
 to a non-"U.S. Person"  in an "offshore transaction"  under, and within  the
 meaning of,  Regulation S  under  the Securities  Act  if accompanied  by  a
 certificate of the transferee substantially in the form set forth as Exhibit
 D hereto.

           (c) The  Capital Securities  may not  be transferred  prior to the
 Resale Restriction Termination Date  except in compliance with  restrictions
 on transfer  set  forth in  the  legend  set forth  below  (the  "Restricted
 Securities Legend"), and except as otherwise contemplated in Section 8.2(a),
 prior  to  the  Resale   Restriction  Termination  Date,  each   Certificate
 evidencing  outstanding  Capital  Securities   shall  bear  the   Restricted
 Securities Legend:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
 AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER
 APPLICABLE SECURITIES  LAWS.  NEITHER  THIS SECURITY  NOR  ANY  INTEREST  OR
 PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
 ENCUMBERED OR OTHERWISE DISPOSED OF IN  THE ABSENCE OF SUCH REGISTRATION  OR
 UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE  REGISTRATION
 REQUIREMENTS OF  THE SECURITIES  ACT. THE  HOLDER OF  THIS SECURITY  BY  ITS
 ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH  SECURITY
 PRIOR TO THE  DATE WHICH  IS THE LATER  OF (i)  TWO YEARS  (OR SUCH  SHORTER
 PERIOD OF TIME AS PERMITTED BY  RULE 144(k) UNDER THE SECURITIES ACT)  AFTER
 THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST  DATE
 ON WHICH  THE TRUST  OR ANY  AFFILIATE (AS  DEFINED IN  RULE 405  UNDER  THE
 SECURITIES ACT)  OF  THE TRUST  WAS  THE HOLDER  OF  THIS SECURITY  OR  SUCH
 INTEREST OR PARTICIPATION (OR ANY PREDECESSOR  THERETO) AND (II) SUCH  LATER
 DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW,
 ONLY (A) TO THE  DEBENTURE ISSUER OR  THE TRUST, (B)  PURSUANT TO RULE  144A
 UNDER THE SECURITIES ACT  ("RULE 144A"), TO A  PERSON THE HOLDER  REASONABLY
 BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"  AS DEFINED IN RULE 144A  THAT
 PURCHASES  FOR  ITS  OWN  ACCOUNT  OR   FOR  THE  ACCOUNT  OF  A   QUALIFIED
 INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING  MADE
 IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
 REQUIREMENTS OF THE SECURITIES  ACT TO AN  "ACCREDITED INVESTOR" WITHIN  THE
 MEANING OF SUBPARAGRAPH (a)(1), (2), (3), (7)  OR (8) OF RULE 501 UNDER  THE
 SECURITIES ACT THAT IS  ACQUIRING THE SECURITY FOR  ITS OWN ACCOUNT, OR  FOR
 THE ACCOUNT OF  AN "ACCREDITED INVESTOR,"  FOR INVESTMENT  PURPOSES AND  NOT
 WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
 VIOLATION OF THE SECURITIES  ACT, (D) PURSUANT TO  OFFERS AND SALES TO  NON-
 U.S. PERSONS THAT OCCUR OUTSIDE THE  UNITED STATES PURSUANT TO REGULATION  S
 UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
 THE  REGISTRATION  REQUIREMENTS  OF  THE  SECURITIES  ACT,  SUBJECT  TO  THE
 DEBENTURE ISSUER'S AND THE  TRUST'S RIGHT PRIOR TO  ANY SUCH OFFER, SALE  OR
 TRANSFER PURSUANT  TO CLAUSES  (C) OR  (E)  TO REQUIRE  THE DELIVERY  OF  AN
 OPINION OF COUNSEL, CERTIFICATION  AND/OR OTHER INFORMATION SATISFACTORY  TO
 EACH OF THEM  IN ACCORDANCE  WITH THE  AMENDED AND  RESTATED DECLARATION  OF
 TRUST, A COPY  OF WHICH MAY  BE OBTAINED FROM  THE DEBENTURE  ISSUER OR  THE
 TRUST. THE HOLDER OF THIS SECURITY  BY ITS ACCEPTANCE HEREOF AGREES THAT  IT
 WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

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

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

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

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

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

     SECTION 8.4.  Transfer  of  Initial  Securities.   Notwithstanding   the
 foregoing  provisions  of  this Article VIII or  any other provision of this
 Declaration (including all Annexes and Exhibits hereto) to the contrary, any
 or all  of the Capital Securities  initially issued  to  the Purchaser  (the
 "Initial  Securities") may be transferred by the Purchaser to any transferee
 selected by it that meets the parameters specified below  and, upon delivery
 to the Registrar, of originals or copies (which may be by facsimile or other
 form of electronic transmission) of a written instrument of transfer in form
 reasonably satisfactory to the Registrar duly  executed by the Purchaser  or
 the Purchaser's attorney  duly authorized  in writing  (it being  understood
 that no signature guarantee  shall be required),  then the Registrar  shall,
 and is authorized  to, record and  register on the  Securities Register  the
 transfer of  such  Initial Securities  to  such transferee;  thereupon,  the
 Registrar is authorized  to confirm  in writing  to the  transferee of  such
 Initial Securities that such transfer has been registered in the  Securities
 Register and that such transferee is the Holder of such Initial  Securities;
 provided, however,  that the  Purchaser of  the Initial  Securities, by  its
 acceptance thereof, agrees that it may  not transfer any Initial  Securities
 prior to the Resale Restriction Termination  Date to any transferee that  is
 not a "Qualified Institutional Buyer" (within the meaning of Rule 144A under
 the Securities Act),  an "accredited investor"  within the  meaning of  Rule
 501(a)(1), (2), (3),  (7) or  (8) under the  Securities Act  or a  non-"U.S.
 Person" in  an "offshore  transaction" under,  and  within the  meaning  of,
 Regulation S  under the  Securities Act.    The Certificate  evidencing  the
 Initial Securities to be transferred, duly endorsed by the Purchaser,  shall
 be surrendered  to  the  Registrar  at  the  time  the  transfer  conditions
 specified in the immediately preceding sentence are satisfied or within five
 (5) Business Days after  the Registrar has registered  the transfer of  such
 Initial Securities  in  the Securities  Register,  and promptly  after  such
 surrender, the Trust shall  execute and, in the  case of a Capital  Security
 Certificate,  the  Institutional  Trustee  shall,  and  is  authorized   to,
 authenticate a Certificate in the name  of the transferee as the new  Holder
 of  the  Initial  Securities  evidenced  thereby.    Until  the  Certificate
 evidencing the  Initial  Securities so  transferred  is surrendered  to  the
 Registrar, such  Initial  Securities may  not  be transferred  by  such  new
 Holder.

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

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

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

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

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

           (c) Except to  the extent provided in Section 9.1(b), and pursuant
 to S 3803(a) of the Statutory Trust Act, the Holders of the Securities shall
 be entitled  to  the  same limitation  of  personal  liability  extended  to
 stockholders of private corporations for profit organized under the  General
 Corporation Law of the State of  Delaware, except as otherwise  specifically
 set forth herein.

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

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

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

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

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

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

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

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

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

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

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

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

           (c) The  indemnification and advancement  of expenses provided by,
 or granted pursuant to, the other  paragraphs of this Section 9.4 shall  not
 be  deemed  exclusive   of  any  other   rights  to   which  those   seeking
 indemnification and  advancement  of  expenses may  be  entitled  under  any
 agreement, vote of stockholders or disinterested directors of the Sponsor or
 Capital Security Holders  of the Trust  or otherwise, both  as to action  in
 such Person's official capacity and as  to action in another capacity  while
 holding such office. All  rights to indemnification  under this Section  9.4
 shall be deemed to be  provided by a contract  between the Sponsor and  each
 Indemnified Person  who serves  in  such capacity  at  any time  while  this
 Section 9.4 is  in effect. Any  repeal or modification  of this Section  9.4
 shall not affect any rights or obligations then existing.

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

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

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

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

     SECTION 9.5.  Outside Businesses.  Any Covered Person, the Sponsor,  the
 Delaware  Trustee and the Institutional Trustee  (subject to Section 4.3(c))
 may engage  in or  possess an  interest in  other  business ventures  of any
 nature or description, independently  or with others, similar  or dissimilar
 to the business of the  Trust, and the  Trust and the  Holders of Securities
 shall have  no  rights  by  virtue  of  this  Declaration  in  and  to  such
 independent  ventures  or  the income or profits  derived therefrom, and the
 pursuit  of  any  such venture, even if competitive with the business of the
 Trust, shall not be deemed wrongful or improper. None of any Covered Person,
 the  Sponsor,  the  Delaware  Trustee  or the Institutional Trustee shall be
 obligated to  present any particular investment or other opportunity  to the
 Trust  even if such opportunity is of a character that, if presented  to the
 Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the
 Delaware Trustee and the Institutional Trustee shall  have the right to take
 for  its  own  account  (individually  or  as a  partner or fiduciary) or to
 recommend  to others any  such particular  investment or  other opportunity.
 Any  Covered  Person, the Delaware Trustee and the Institutional Trustee may
 engage or  be  interested  in  any  financial or other  transaction with the
 Sponsor or  any  Affiliate of the  Sponsor,  or may  act as depositary  for,
 trustee  or  agent  for,  or  act  on any committee  or body of  holders of,
 securities or other obligations of the Sponsor or its Affiliates.

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

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

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

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

                                  ARTICLE X
                                  ACCOUNTING

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

     SECTION 10.2.  Certain Accounting Matters.

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

           (b) The Sponsor  shall cause the Administrators to deliver to each
 Holder of Securities:  (1)  within 45 days after  the end of each  quarterly
 fiscal  period  other  than  year  end,  unaudited  consolidated   financial
 statements of the  Sponsor (including  balance sheet  and income  statement)
 covering such period; (2)  within 60 days  after the end  of each year  end,
 unaudited  consolidated  financial  statements  of  the  Sponsor  (including
 balance sheet and income statement) covering the related annual period;  (3)
 within the earlier of  (y) 90 days after  the end of each  year end and  (z)
 such earlier number of days prescribed by the Commission for the filing with
 it of  a Form  10-K  by companies  subject  to the  informational  reporting
 requirements  of  the  Exchange  Act,  (i)  audited  consolidated  financial
 statements of the  Sponsor (including  balance sheet  and income  statement)
 covering the  related annual  period, (ii)  the  report of  the  independent
 accountants with respect to such financial statements and (iii) an Officer's
 Certificate of the  Sponsor detailing any  material differences between  the
 unaudited financial statements for such annual period delivered pursuant  to
 clause (2) above and those delivered  pursuant to this clause; (4) within  7
 days after the filing thereof, each Form 10-K Form 10-Q and Form 8-K that is
 prepared by the Sponsor  in respect of  the Sponsor or  the Trust and  filed
 with the Commission in accordance with the Exchange Act, if any; and (5)  if
 the Sponsor is not then (y) subject to  Section 13 or 15(d) of the  Exchange
 Act or (z) exempt from reporting pursuant to Rule 12g3-2(b) thereunder,  the
 information required to be provided by Rule 144A(d)(4) under the  Securities
 Act unless all of such information has been previously delivered to  Holders
 under clause (1), (2) or (3) above.

           (c) The  Administrators  shall  cause  to  be  duly  prepared  and
 delivered to  each of  the Holders  of Securities  Form 1099  or such  other
 annual United States  federal income tax  information statement required  by
 the Code, containing such information with regard to the Securities held  by
 each Holder  as  is required  by  the  Code and  the  Treasury  Regulations.
 Notwithstanding any right under the Code to deliver any such statement at  a
 later date, the Administrators shall endeavor to deliver all such statements
 within 30 days after the end of each Fiscal Year of the Trust.

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

           (e) The Administrators will cause the Sponsor's reports filed with
 all state and federal agencies to be delivered to Holder promptly after such
 filing.

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

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

                                 ARTICLE XI
                           AMENDMENTS AND MEETINGS

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

                (i) the Institutional Trustee,

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

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

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

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

                (i) unless  the  Institutional  Trustee   shall  have   first
           received

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

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

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

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

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

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

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

           (d) In addition to and notwithstanding any other provision in this
 Declaration, without the consent of  each affected Holder, this  Declaration
 may not be amended to (i) change the amount or timing of any Distribution on
 the Securities or any redemption or liquidation provisions applicable to the
 Securities or  otherwise adversely  affect the  amount of  any  Distribution
 required to be made in respect of the  Securities as of a specified date  or
 (ii) restrict the right of a Holder to institute suit for the enforcement of
 any Distributions or other amounts on or after their due date.

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

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

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

                (i) cure any ambiguity;

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

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

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

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

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

           (a) Meetings  of the  Holders of  any class  of Securities  may be
 called at any time by the Administrators (or as provided in the terms of the
 Securities) to consider and act on any matter on which Holders of such class
 of Securities are entitled to act  under the terms of this Declaration,  the
 terms of the  Securities or the  rules of  any  stock exchange  on which the
 Capital  Securities  are  listed  or  admitted  for  trading,  if  any.  The
 Administrators shall call a meeting of the Holders of such class if directed
 to do so by the Holders of not less  than 10% in liquidation amount of  such
 class of Securities.  Such direction  shall be  given by  delivering to  the
 Administrators one or  more notices in  a writing stating  that the  signing
 Holders of the Securities wish to call a meeting and indicating the  general
 or specific purpose for which  the meeting is to  be called. Any Holders  of
 the Securities calling a meeting shall  specify in writing the  Certificates
 held by the Holders of the Securities exercising the right to call a meeting
 and only those Securities represented by such Certificates shall be  counted
 for purposes of determining whether the required percentage set forth in the
 second sentence of this paragraph has been met.

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

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

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

                (iii)  unless the Statutory Trust  Act, this Declaration, the
           terms of the Securities,  the Trust Indenture  Act or the  listing
           rules of any stock  exchange on which  the Capital Securities  are
           then  listed  for  trading,   if  any,  otherwise  provides,   the
           Administrators, in  their  sole discretion,  shall  establish  all
           other provisions relating  to meetings of  Holders of  Securities,
           including notice of the time, place  or purpose of any meeting  at
           which any  matter  is  to  be  voted on  by  any  Holders  of  the
           Securities, waiver of any such notice, action by consent without a
           meeting, the establishment of a record date, quorum  requirements,
           voting in person or by proxy  or any other matter with respect  to
           the exercise of any  such right to  vote; provided, however,  that
           each meeting shall be conducted in the United States (as that term
           is defined in Treasury Regulations S 301.7701-7).

                                 ARTICLE XII
                   REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                             AND DELAWARE TRUSTEE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                ARTICLE XIII
                                MISCELLANEOUS

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

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

                   Hallmark Statutory Trust I
                   c/o Hallmark Financial Services, Inc.
                   777 Main Street, Suite 1000
                   Fort Worth, TX  76102
                   Attention: Mark J. Morrison
                   Telecopy: 817-348-1815
                   Telephone: 817-348-1728

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

                   Chase Bank USA, National Association
                   500 Stanton Christiana Rd., FL3/OPS4
                   Newark, DE 19713
                   Attention: Worldwide Securities Services -
                              Hallmark Statutory Trust I
                   Telecopy:  302-552-6280
                   Telephone: 302-552-6279

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

                   JPMorgan Chase Bank, National Association
                   600 Travis Street, 50th Floor
                   Houston, Texas  77002
                   Attention: Worldwide Securities Services -
                              Hallmark Statutory Trust I
                   Telecopy:  713-216-2101
                   Telephone: 713-216-4781

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

                   Hallmark Financial Services, Inc.
                   777 Main Street, Suite 1000
                   Fort Worth, TX  76102
                   Attention: Mark J. Morrison
                   Telecopy:  817-348-1815
                   Telephone: 817-348-1728

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

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

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

     SECTION 13.3.  Submission to Jurisdiction.

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

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

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

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

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

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

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

     SECTION 13.8.  Counterparts.  This Declaration may contain more than one
 counterpart of the signature  page and this Declaration  may be executed  by
 the affixing of the signature of each of the Trustees and Administrators  to

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

                                  * * *

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

                                   CHASE BANK USA,
                                   NATIONAL ASSOCIATION,
                                   as Delaware Trustee

                                   By:________________________________
                                   Name:______________________________
                                   Title:_____________________________

                                   JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                                   as Institutional Trustee

                                   By:________________________________
                                   Name:______________________________
                                   Title:_____________________________

                                   Hallmark Financial Services, Inc.,
                                   as Sponsor

                                   By:________________________________
                                   Name:______________________________
                                   Title:_____________________________

                                   By:________________________________
                                   Administrator

                                   By:________________________________
                                   Administrator

<PAGE>

                                    ANNEX I

                                    TERMS OF
                            CAPITAL SECURITIES AND
                               COMMON SECURITIES

       Pursuant to  Section 6.1  of  the  Amended  and  Restated  Declaration
 of  Trust,  dated  as  of June  21,  2005 (as  amended  from time  to  time,
 the "Declaration"),  the  designation,  rights,   privileges,  restrictions,
 preferences and other terms and provisions of the Capital Securities and the
 Common Securities are  set out  below (each  capitalized term  used but  not
 defined herein has the meaning set forth in the Declaration):

      1. Designation and Number.

      (a) Capital Securities. 30,000 Capital Securities of Hallmark Statutory
 Trust I  (the "Trust"),  with an  aggregate stated  liquidation amount  with
 respect to the assets of the  Trust of Thirty Million Dollars  ($30,000,000)
 and a stated liquidation amount with respect  to the assets of the Trust  of
 $1,000 per Capital Security (the "Capital Securities"). The Capital Security
 Certificates evidencing the Capital Securities shall be substantially in the
 form of Exhibit  A-1 to  the Declaration,  with such  changes and  additions
 thereto or deletions therefrom as may be required by ordinary usage,  custom
 or practice or to conform to  the rules of any  stock exchange on which  the
 Capital Securities are listed, if any.

      (b) Common Securities.  928 Common Securities of the Trust (the "Common
 Securities") will be evidenced by Common Security Certificates substantially
 in the  form  of Exhibit  A-2  to the  Declaration,  with such  changes  and
 additions thereto  or deletions  therefrom as  may be  required by  ordinary
 usage, custom or practice. In the absence of an Event of Default, the Common
 Securities will have an aggregate stated liquidation amount with respect  to
 the assets  of  the Trust  of  Nine Hundred  Twenty-Eight  Thousand  Dollars
 ($928,000) and a stated liquidation amount with respect to the assets of the
 Trust of $1,000 per Common Security.

      2. Distributions.   (a) Distributions  payable  on  each Security  will
 be  payable  at  a  fixed  rate  of  7.725%  (the  "Fixed  Rate")  per annum
 from  the  date hereof  until  June 15, 2015 (the "Fixed  Rate  Period") and
 thereafter  at  a  variable per  annum rate  of interest,  reset  quarterly,
 equal  to  LIBOR,  as  determined   on  the  LIBOR  Determination  Date  for
 such Distribution Period,  plus 3.25% (the  "Variable Rate")  of the  stated
 liquidation amount  of  $1,000 per  Security  (provided, however,  that  the
 Variable Rate for any  Distribution Period may not  exceed the highest  rate
 permitted by New York law, as the same may be modified by United States  law
 of general applicability).  The Coupon Rate  (defined  to include the  Fixed
 Rate and Variable  Rate, as  applicable, shall  equal the  rate of  interest
 payable on the Debentures to be held by the Institutional Trustee. Except as
 set forth below in respect of an Extension Period, Distributions in  arrears
 for more than  one quarterly period  will bear  interest thereon  compounded
 quarterly at the applicable  Coupon Rate for each such quarterly period  (to
 the extent permitted by applicable law).  The term "Distributions"  as  used
 herein includes cash  distributions, any such  compounded distributions  and
 any Additional Interest payable on the Debentures unless otherwise stated. A
 Distribution is payable only to the extent that payments are made in respect
 of the Debentures held  by the Institutional Trustee  and to the extent  the
 Institutional Trustee has  funds legally available  in the Property  Account
 therefor.  During the Fixed Rate Period, the amount of Distributions payable
 for any  Distribution  Period  will  be  computed  for  any  full  quarterly
 Distribution Period on the basis of  a 360-day year of twelve 30-day  months
 and the amount payable 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.
 Upon expiration of the Fixed Rate Period, Distributions will be computed  on
 the basis of a  360-day year and the  actual number of  days elapsed in  the
 relevant Distribution Period; provided, however, that upon the occurrence of
 a Special  Event Redemption  pursuant to  paragraph 4(a)  below the  amounts
 payable pursuant to this Declaration shall be calculated as set forth in the
 definition of Special Redemption Price.

       The term "Distribution Period," as used  herein, means (i) in the case
 of the first Distribution Period, the  period from, and including, the  date
 of original  issuance  of the  Securities  to, but  excluding,  the  initial
 Distribution Payment  Date and  (ii) thereafter,  from, and  including,  the
 first day following  the end of  the preceding Distribution  Period to,  but
 excluding, the applicable Distribution Payment Date  or, in the case of  the
 last Distribution Period, the related date of redemption.

      (b) Upon expiration of the Fixed Rate Period, LIBOR shall be determined
 by the Calculation Agent for each Distribution Period in accordance with the
 following provisions:

                (1) On the  second LIBOR Business Day (provided, that on such
           day commercial banks are open for business (including dealings  in
           foreign currency deposits) in London (a "LIBOR Banking Day"),  and
           otherwise the next  preceding LIBOR Business  Day that  is also  a
           LIBOR Banking Day) prior  to March 15, June  15, September 15  and
           December 15, as  the case  may be,  (except, with  respect to  the
           first Distribution  Period,  upon  expiration of  the  Fixed  Rate
           Period, on June 15, 2015), (each such day, a "LIBOR  Determination
           Date"), LIBOR shall equal the rate, as obtained by the Calculation
           Agent for  three-month  U.S.  Dollar  deposits  in  Europe,  which
           appears on Telerate  Page 3750  (as defined  in the  International
           Swaps and  Derivatives Association,  Inc. 2000  Interest Rate  and
           Currency Exchange Definitions) or such  other page as may  replace
           such Telerate Page 3750,  as of 11:00 a.m.  (London time) on  such
           LIBOR Determination  Date,  as  reported  by  Bloomberg  Financial
           Markets Commodities News or any successor service. "LIBOR Business
           Day" means any day that is not a Saturday, Sunday or other day  on
           which commercial banking  institutions in  New York,  New York  or
           Wilmington,  Delaware  are  authorized  or  obligated  by  law  or
           executive order  to  be closed.  If  such rate  is  superseded  on
           Telerate Page 3750 by a corrected  rate before 12:00 noon  (London
           time) on the same LIBOR Determination Date, the corrected rate  as
           so substituted  will  be  the  applicable  LIBOR  for  that  LIBOR
           Determination Date.

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

                (3) If the Calculation  Agent is  required but  is unable  to
           determine a rate in accordance with at least one of the procedures
           provided above, LIBOR for such Distribution Period shall be  LIBOR
           in effect for the immediately preceding Distribution Period.

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

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

      (e) Distributions  on the  Securities will  be cumulative,  will accrue
 from the  date  of  original  issuance, and  will  be  payable,  subject  to
 extension of Distribution Periods as described herein, quarterly in  arrears
 on March 15, June 15, September 15 and December 15 of each year,  commencing
 September 15, 2005 (each, a "Distribution  Payment Date"). Subject to  prior
 submission of Notice (as defined in the Indenture), the Debenture Issuer has
 the right  under  the  Indenture  to  defer  payments  of  interest  on  the
 Debentures by extending the interest payment period for up to 20 consecutive
 quarterly periods (each such extended interest payment period together  with
 all previous  and  future consecutive  extensions  thereof, is  referred  to
 herein as an "Extension Period") at  any time and from  time to time on  the
 Debentures,  subject  to  the  conditions  described  below,  during   which
 Extension Period no interest shall be due and payable (except any Additional
 Interest that may be due and payable). During any Extension Period, interest
 will continue to  accrue on  the Debentures,  and interest  on such  accrued
 interest (such accrued interest and interest  thereon referred to herein  as
 "Deferred Interest") will accrue at an annual rate equal to the Coupon  Rate
 in effect for each such Extension Period, compounded quarterly from the date
 such Deferred Interest would have been payable were it not for the Extension
 Period, to the extent  permitted by law.  No Extension Period  may end on  a
 date other  than  a  Distribution Payment  Date.  At  the end  of  any  such
 Extension Period, the Debenture Issuer shall pay all Deferred Interest  then
 accrued and unpaid on the Debentures;  provided, however, that no  Extension
 Period may extend beyond  the Maturity Date any  Redemption Date or  Special
 Redemption Date  and  provided, further,  that,  during any  such  Extension
 Period, the Debenture  Issuer may not  (i) declare or  pay any dividends  or
 distributions on,  or  redeem,  purchase, acquire,  or  make  a  liquidation
 payment with respect to, any of  the Debenture Issuer's capital stock,  (ii)
 make any payment due on or  repay, repurchase or redeem any debt  securities
 of the Debenture Issuer that rank pari passu in all respects with or  junior
 in interest to the Debentures or (iii) make any payment under any guarantees
 of the Debenture Issuer that rank in all respects pari passu with or  junior
 in interest to  the Guarantee (other  than (a)  repurchases, redemptions  or
 other acquisitions of shares of capital stock of the Debenture Issuer (A) in
 connection with  any  employment contract,  benefit  plan or  other  similar
 arrangement with or  for the  benefit of  one or  more employees,  officers,
 directors or consultants, (B) in connection with a dividend reinvestment  or
 stockholder stock purchase plan  or (C) in connection  with the issuance  of
 capital stock of  the Debenture Issuer  (or securities  convertible into  or
 exercisable for  such capital  stock), as  consideration in  an  acquisition
 transaction entered into prior to the applicable Extension Period, (b) as  a
 result of any exchange, reclassification,  combination or conversion of  any
 class or series  of the  Debenture Issuer's  capital stock  (or any  capital
 stock of a subsidiary of  the Debenture Issuer) for  any class or series  of
 the Debenture  Issuer's capital  stock or  of  any class  or series  of  the
 Debenture Issuer's indebtedness  for any class  or series  of the  Debenture
 Issuer's capital stock, (c) the purchase  of fractional interests in  shares
 of the  Debenture  Issuer's capital  stock  pursuant to  the  conversion  or
 exchange provisions of such capital stock or the security being converted or
 exchanged, (d)  any  declaration  of  a  dividend  in  connection  with  any
 stockholder's rights  plan,  or  the issuance  of  rights,  stock  or  other
 property  under  any  stockholder's  rights  plan,  or  the  redemption   or
 repurchase of rights pursuant  thereto, or (e) any  dividend in the form  of
 stock, warrants, options  or other rights  where the dividend  stock or  the
 stock issuable upon exercise  of such warrants, options  or other rights  is
 the same stock as  that on which the  dividend is being  paid or ranks  pari
 passu with  or  junior to  such  stock). Prior  to  the termination  of  any
 Extension Period,  the  Debenture Issuer  may  further extend  such  period,
 provided, that  such period  together with  all  such previous  and  further
 consecutive extensions  thereof shall  not exceed  20 consecutive  quarterly
 periods, or extend  beyond the Maturity  Date. Upon the  termination of  any
 Extension Period  and  upon  the  payment  of  all  Deferred  Interest,  the
 Debenture Issuer  may  commence  a new  Extension  Period,  subject  to  the
 requirements herein and in the Indenture.  No interest or Deferred  Interest
 (except any Additional Interest  that may be due  and payable) shall be  due
 and payable  during an  Extension Period,  except at  the end  thereof,  but
 Deferred Interest shall accrue upon each installment of interest that  would
 otherwise have been due and payable during such Extension Period until  such
 installment is paid.  If Distributions are  deferred, the Distributions  due
 shall be paid on the date  that the related Extension Period terminates,  to
 Holders of the Securities  as they appear  on the books  and records of  the
 Trust on the record date immediately  preceding such date. Distributions  on
 the Securities must be paid on the dates payable (after giving effect to any
 Extension Period) to the extent that  the Trust has funds legally  available
 for the payment of such distributions in the Property Account of the  Trust.
 The  Trust's  funds  available  for  distribution  to  the  Holders  of  the
 Securities will be limited to payments  received from the Debenture  Issuer.
 The payment of Distributions out of  moneys held by the Trust is  guaranteed
 by the Guarantor pursuant to the Guarantee.

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

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

      (h) If   any  Distribution  Payment  Date,   other  than  any  date  of
 redemption, falls on a  day that is not  a Business Day, then  Distributions
 payable will be paid  on, and such Distribution  Payment Date will be  moved
 to, the  next succeeding  Business Day,  and additional  Distributions  will
 accrue for each day that such payment is delayed as a result thereof.

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

       The Sponsor, as  the Holder of  all of the  Common Securities, has the
 right at any time upon receipt by the Debenture Issuer and the Institutional
 Trustee for the benefit of the Trust of an opinion of nationally  recognized
 tax counsel that  Holders will  not recognize any  gain or  loss for  United
 States Federal  income tax  purposes  as a  result  of the  distribution  of
 Debentures, to dissolve  the Trust  (including without  limitation upon  the
 occurrence of a Tax Event or an Investment Company Event) after satisfaction
 of liabilities  to  creditors of  the  Trust,  cause the  Debentures  to  be
 distributed to  the  Holders  of the  Securities  on  a Pro  Rata  basis  in
 accordance with the aggregate liquidation amount thereof.

       The Trust shall dissolve on  the first to occur  of (i) June 15, 2040,
 the expiration  of the  term of  the  Trust, (ii)  a Bankruptcy  Event  with
 respect to the Sponsor, the Trust or the Debenture Issuer, (iii) (other than
 in connection  with  a  merger, consolidation  or  similar  transaction  not
 prohibited by the Indenture, this Declaration or the Guarantee, as the  case
 may be) the filing  of a certificate of  dissolution or its equivalent  with
 respect to the Sponsor or upon the revocation of the charter of the  Sponsor
 and the  expiration  of 90  days  after the  date  of revocation  without  a
 reinstatement  thereof,  (iv)  the  distribution  to  the  Holders  of   the
 Securities of the Debentures,  upon exercise of the  right of the Holder  of
 all of the outstanding Common Securities to dissolve the Trust as  described
 above, (v) the entry of a decree of a judicial dissolution of the Sponsor or
 the Trust, or (vi)  when all of  the Securities shall  have been called  for
 redemption and the amounts necessary for redemption thereof shall have  been
 paid to the Holders in accordance with the terms of the Securities. As  soon
 as practicable after the dissolution of the Trust and upon completion of the
 winding up of  the Trust, the  Trust shall terminate  upon the  filing of  a
 certificate of cancellation  with the  Secretary of  State of  the State  of
 Delaware.

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

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

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

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

      4. Redemption and Distribution.

      (a) The  Debentures will mature on June  15, 2035 ("Maturity Date") for
 an amount equal to 100% of the principal amount thereof plus unpaid interest
 accrued thereon  to such  date, if  any ("Maturity  Redemption Price").  The
 Debentures may be redeemed by the Debenture Issuer, in whole or in part,  on
 any March 15, June 15, September 15 or December 15 on or after June 15, 2010
 at the Redemption Price, upon not less than 30 nor more than 60 days' notice
 to Holders  of  such  Debentures.  In  addition,  upon  the  occurrence  and
 continuation of a Tax Event or  an Investment Company Event, the  Debentures
 may be redeemed by  the Debenture Issuer in  whole but not  in part, at  any
 time within 90 days following the occurrence of such Tax Event or Investment
 Company Event, as  the case may  be (the "Special  Redemption Date") at  the
 Special Redemption  Price, upon  not less  than 30  nor more  than 60  days'
 notice to Holders of the Debentures so long as such Tax Event or  Investment
 Company Event, as the case may  be, is continuing.  Additional interest  may
 also be payable by the Debenture Issuer in connection with such Tax Event or
 Investment Company Event  as specified in  Section 10.02  of the  Indenture.
 Any such interest  received by  the Trust  will be  distributed promptly  to
 Holders of the Securities on a Pro Rata basis.

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

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

       "Redemption Date" means the  date fixed for  the redemption of Capital
 Securities, which shall be any March  15, June 15, September 15 or  December
 15 on or after June 15, 2010.

      "Redemption Price" means 100% of the principal amount of the Debentures
 being redeemed plus accrued  and unpaid interest on  such Debentures to  the
 Redemption Date or, in the case of a  redemption due to the occurrence of  a
 Special Event, to  the Special Redemption  Date if  such Special  Redemption
 Date is on or after June 15, 2010.

       "Special Event"  means either  a Tax  Event  or an  Investment Company
 Event.

       "Special Redemption Price" means (1) if the Special Redemption Date is
 before June 15, 2004, 107.5% of the principal amount to be redeemed plus any
 accrued and unpaid interest thereon to  the date of such redemption and  (2)
 if the Special Redemption Date is on or after June 15, 2010, the  Redemption
 Price for such Special Redemption Date.

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

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

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

      (e) Redemption or Distribution Procedures.

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

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

                (iii)  If the Securities are  to be  redeemed and  the  Trust
           gives a Redemption/Distribution Notice,  which notice may only  be
           issued if the Debentures are redeemed as set out in this Section 4
           (which notice  will  be  irrevocable), then,  provided,  that  the
           Institutional  Trustee  has  a   sufficient  amount  of  cash   in
           connection  with  the  related  redemption  or  maturity  of   the
           Debentures, the Institutional Trustee  will pay the price  payable
           upon  redemption  of  the  Securities  to  the  Holders  of   such
           Securities by  check mailed  to the  address of  each such  Holder
           appearing on the books and records of the Trust on the  redemption
           date. If a  Redemption/Distribution Notice shall  have been  given
           and funds deposited  as required,  then immediately  prior to  the
           close of business on the date of such deposit, Distributions  will
           cease to accrue on the Securities so called for redemption and all
           rights of Holders of such Securities so called for redemption will
           cease, except  the right  of the  Holders  of such  Securities  to
           receive the applicable  price specified  in Section  4(a). If  any
           date of  redemption of  Securities is  not  a Business  Day,  then
           payment of any such price payable on such date will be made on the
           next succeeding day that  is a Business Day  except that, if  such
           Business Day falls in the next calendar year, such payment will be
           made on the immediately preceding Business Day, in each case  with
           the same  force and  effect as  if  made on  such date  fixed  for
           redemption.  If payment of the Redemption Price in respect of  any
           Securities is improperly withheld or  refused and not paid  either
           by the Trust or by the  Debenture Issuer as guarantor pursuant  to
           the Guarantee, Distributions on  such Securities will continue  to
           accrue at the  then applicable rate  from the original  redemption
           date to  the actual  date of  payment, in  which case  the  actual
           payment date will be considered the date fixed for redemption  for
           purposes of calculating the price  payable upon redemption of  the
           Capital Securities. The Trust shall not be required to (i)  issue,
           register the transfer of or exchange any Security during a  period
           beginning at the opening of business 15 days before any  selection
           for redemption of the Capital Securities  and ending at the  close
           of business on the earliest date  on which the relevant notice  of
           redemption is deemed  to have  been given  to all  Holders of  the
           Capital Securities to be so redeemed or (ii) register the transfer
           of or exchange any Capital Securities so selected for  redemption,
           in whole or  in part,  except for  the unredeemed  portion of  any
           Capital Securities being redeemed in part.

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

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

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

      (b) Subject  to  the requirements  of obtaining  a  tax opinion  by the
 Institutional Trustee  in  certain  circumstances  set  forth  in  the  last
 sentence of this paragraph, the Holders of a Majority in liquidation  amount
 of the Capital Securities, voting separately  as a class, have the right  to
 direct the time,  method, and  place of  conducting any  proceeding for  any
 remedy available to the  Institutional Trustee, or  exercising any trust  or
 power conferred  upon  the  Institutional  Trustee  under  the  Declaration,
 including the right to  direct the Institutional Trustee,  as holder of  the
 Debentures, to (i) exercise  the remedies available  under the Indenture  as
 the holder of the Debentures, (ii)  waive any past default that is  waivable
 under the  Indenture,  (iii)  exercise  any right  to  rescind  or  annul  a
 declaration that  the principal  of  all the  Debentures  shall be  due  and
 payable or  (iv)  consent  on behalf  of  all  the Holders  of  the  Capital
 Securities to any amendment, modification or termination of the Indenture or
 the Debentures  where such  consent shall  be required;  provided,  however,
 that, where  a consent  or  action under  the  Indenture would  require  the
 consent or act of the holders of greater than a simple majority in principal
 amount  of   Debentures  (a   "Super   Majority")  affected   thereby,   the
 Institutional Trustee may only give such consent or take such action at  the
 written direction  of  the  Holders  of not  less  than  the  proportion  in
 liquidation amount of the Capital Securities outstanding which the  relevant
 Super  Majority  represents  of  the  aggregate  principal  amount  of   the
 Debentures outstanding. If  the Institutional Trustee  fails to enforce  its
 rights under the Debentures after the  Holders of a Majority in  liquidation
 amount of  such  Capital  Securities  have  so  directed  the  Institutional
 Trustee, to the  fullest extent permitted  by law, a  Holder of the  Capital
 Securities may institute a legal  proceeding directly against the  Debenture
 Issuer to enforce  the Institutional Trustee's  rights under the  Debentures
 without first  instituting any  legal proceeding  against the  Institutional
 Trustee or any other person or entity. Notwithstanding the foregoing, if  an
 Event  of  Default  has  occurred  and  is  continuing  and  such  event  is
 attributable to  the failure  of the  Debenture Issuer  to pay  interest  or
 premium, if any, on or principal of the Debentures on the date the  interest
 premium, if any, or principal is payable (or in the case of redemption,  the
 redemption date), then  a Holder  of record  of the  Capital Securities  may
 directly institute a proceeding for enforcement of payment, on or after  the
 respective due dates specified in the Debentures, to such Holder directly of
 the principal of or premium, if any, or interest on the Debentures having an
 aggregate principal amount equal to the aggregate liquidation amount of  the
 Capital Securities of  such Holder. The  Institutional Trustee shall  notify
 all Holders of the Capital Securities  of any default actually known to  the
 Institutional Trustee with respect to the Debentures unless (x) such default
 has been cured prior to the giving  of such notice or (y) the  Institutional
 Trustee determines in good faith that  the withholding of such notice is  in
 the interest of  the Holders of  such Capital Securities,  except where  the
 default relates  to the  payment of  principal  of or  premium, if  any,  or
 interest on  any  of the  Debentures.  Such  notice shall  state  that  such
 Indenture Event of Default also constitutes  an Event of Default  hereunder.
 Except with respect to directing the time, method and place of conducting  a
 proceeding for a remedy, the Institutional Trustee shall not take any of the
 actions described  in clause  (i),  (ii), (iii)  or  (iv) above  unless  the
 Institutional Trustee has obtained an opinion  of tax counsel to the  effect
 that, as a result of such action, the Trust will not be classified as  other
 than a grantor trust for United States federal income tax purposes.

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

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

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

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

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

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

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

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

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

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

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

 Securities which the  relevant Super  Majority represents  of the  aggregate
 principal amount of the Debentures outstanding.

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

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

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

      9. Ranking.   The Capital Securities rank  pari passu with, and payment
 thereon shall be  made Pro  Rata with,  the Common  Securities except  that,
 where an Event  of Default  has occurred and  is continuing,  the rights  of
 Holders of the  Common Securities to  receive payment  of Distributions  and
 payments upon Liquidation, redemption and otherwise are subordinated to  the
 rights of the  Holders of  the Capital Securities  with the  result that  no
 payment of any Distribution  on, or any amount  payable upon the  redemption
 of, any Common Security, and no payment to the Holder of any Common Security
 on account of the Liquidation of the Trust, shall be made unless payment  in
 full in cash of (i) all accrued and unpaid Distributions on all  outstanding
 Capital Securities  for all  Distribution Periods  terminating on  or  prior
 thereto, (ii) all amounts  payable upon Capital  Securities then subject  to
 redemption, and (iii)  all amounts payable  upon Capital  Securities in  the
 event of the Liquidation of the Trust, in each case, shall have been made or
 provided for,  and  all funds  immediately  available to  the  Institutional
 Trustee shall first be applied to the payment in full in cash of the amounts
 specified in clause (i), (ii) and (iii) above that are then due and payable.

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

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

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

<PAGE>

                                 EXHIBIT A-1

                    FORM OF CAPITAL SECURITIES CERTIFICATE

                          [FORM OF FACE OF SECURITY]

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
 AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER
 APPLICABLE SECURITIES  LAWS.  NEITHER  THIS SECURITY  NOR  ANY  INTEREST  OR
 PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
 ENCUMBERED OR OTHERWISE DISPOSED OF IN  THE ABSENCE OF SUCH REGISTRATION  OR
 UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE  REGISTRATION
 REQUIREMENTS OF  THE SECURITIES  ACT. THE  HOLDER OF  THIS SECURITY  BY  ITS
 ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH  SECURITY
 PRIOR TO THE  DATE WHICH  IS THE LATER  OF (i)  TWO YEARS  (OR SUCH  SHORTER
 PERIOD OF TIME AS PERMITTED BY  RULE 144(k) UNDER THE SECURITIES ACT)  AFTER
 THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND (Z) THE LAST  DATE
 ON WHICH  THE TRUST  OR ANY  AFFILIATE (AS  DEFINED IN  RULE 405  UNDER  THE
 SECURITIES ACT)  OF  THE TRUST  WAS  THE HOLDER  OF  THIS SECURITY  OR  SUCH
 INTEREST OR PARTICIPATION (OR ANY PREDECESSOR  THERETO) AND (ii) SUCH  LATER
 DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW,
 ONLY (A) TO THE  DEBENTURE ISSUER OR  THE TRUST, (B)  PURSUANT TO RULE  144A
 UNDER THE SECURITIES ACT  ("RULE 144A"), TO A  PERSON THE HOLDER  REASONABLY
 BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"  AS DEFINED IN RULE 144A  THAT
 PURCHASES  FOR  ITS  OWN  ACCOUNT  OR   FOR  THE  ACCOUNT  OF  A   QUALIFIED
 INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING  MADE
 IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
 REQUIREMENTS OF THE SECURITIES  ACT TO AN  "ACCREDITED INVESTOR" WITHIN  THE
 MEANING OF SUBPARAGRAPH (a)(1), (2), (3), (7)  OR (8) OF RULE 501 UNDER  THE
 SECURITIES ACT THAT IS  ACQUIRING THE SECURITY FOR  ITS OWN ACCOUNT, OR  FOR
 THE ACCOUNT OF  AN "ACCREDITED INVESTOR,"  FOR INVESTMENT  PURPOSES AND  NOT
 WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
 VIOLATION OF THE SECURITIES  ACT, (D) PURSUANT TO  OFFERS AND SALES TO  NON-
 U.S. PERSONS THAT OCCUR OUTSIDE THE  UNITED STATES PURSUANT TO REGULATION  S
 UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
 THE  REGISTRATION  REQUIREMENTS  OF  THE  SECURITIES  ACT,  SUBJECT  TO  THE
 DEBENTURE ISSUER'S AND THE  TRUST'S RIGHT PRIOR TO  ANY SUCH OFFER, SALE  OR
 TRANSFER PURSUANT  TO CLAUSES  (C) OR  (E)  TO REQUIRE  THE DELIVERY  OF  AN
 OPINION OF COUNSEL, CERTIFICATION  AND/OR OTHER INFORMATION SATISFACTORY  TO
 EACH OF THEM  IN ACCORDANCE  WITH THE  AMENDED AND  RESTATED DECLARATION  OF
 TRUST, A COPY  OF WHICH MAY  BE OBTAINED FROM  THE DEBENTURE  ISSUER OR  THE
 TRUST. THE HOLDER OF THIS SECURITY  BY ITS ACCEPTANCE HEREOF AGREES THAT  IT
 WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

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

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

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

<PAGE>

 Certificate Number  [P-001]              Number of Capital Securities 30,000

                  Certificate Evidencing Capital Securities

                                      of

                          Hallmark Statutory Trust I

               (liquidation amount $1,000 per Capital Security)

      Hallmark Statutory Trust I, a statutory trust created under the laws of
 the State of Delaware  (the "Trust"), hereby  certifies that Merrill  Lynch,
 Pierce, Fenner & Smith Incorporated (the  "Holder") is the registered  owner
 of 30,000 capital securities of the Trust representing undivided  beneficial
 interests in the assets of the Trust (liquidation amount $1,000 per  Capital
 Security) (the "Capital Securities"). Subject to the Declaration (as defined
 below), the Capital Securities are transferable on the books and records  of
 the Trust, in  person or by  a duly authorized  attorney, upon surrender  of
 this Certificate duly endorsed and in proper form for transfer. The  Capital
 Securities represented hereby are issued  pursuant to, and the  designation,
 rights, privileges, restrictions, preferences and other terms and provisions
 of the  Capital  Securities  shall  in  all  respects  be  subject  to,  the
 provisions of the Amended  and Restated Declaration of  Trust of the  Trust,
 dated as of June 21, 2005 (the "Declaration"), among Mark Schwartz and  Mark
 Morrison, as  Administrators,  Chase  Bank  USA,  National  Association,  as
 Delaware  Trustee,   JPMorgan   Chase   Bank,   National   Association,   as
 Institutional Trustee, Hallmark  Financial Services, Inc.,  as Sponsor,  and
 the holders  from time  to time  of undivided  beneficial interests  in  the
 assets of the Trust, including the  designation of the terms of the  Capital
 Securities as set forth in Annex  I to the Declaration,  as the same may  be
 amended from time  to time. Capitalized  terms used herein  but not  defined
 shall have the meaning given them in the Declaration. The Holder is entitled
 to the benefits of the Guarantee to the extent provided therein. The Sponsor
 will provide a copy of the Declaration, the Guarantee, and the Indenture  to
 the Holder  without  charge upon  written  request  to the  Sponsor  at  its
 principal place of business.

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

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

      This Certificate  and  the  Capital  Securities  evidenced  hereby  are
 governed by, and  shall be  construed in accordance  with, the  laws of  the
 State of Delaware, without regard to principles of conflict of laws.

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

                                 Hallmark Statutory Trust I

                                 By: ______________________
                                 Name:_____________________
                                 Title:  Administrator

                                 Dated: ___________________

                        CERTIFICATE OF AUTHENTICATION

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

                                 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                                 not in its individual capacity but solely
                                 as the Institutional Trustee

                                 By: ______________________
                                     Authorized Officer

                                 Dated ____________________

<PAGE>

                        [FORM OF REVERSE OF SECURITY]

      Distributions payable on  each Capital Security  will be  payable at  a
 fixed rate of 7.725%  (the "Fixed Rate") per  annum from _______ until  June
 15, 2015 (the "Fixed  Rate Period") and thereafter  at a variable per  annum
 rate of  interest,  reset quarterly,  equal  to  LIBOR (as  defined  in  the
 Declaration) plus 3.25%  (the "Variable  Rate"), of  the stated  liquidation
 amount of $1,000 per  Capital Security (provided,  however, that the  Coupon
 Rate, defined to include  the Fixed Rate and  Variable Rate, as  applicable,
 for any Distribution Period,  may not exceed the  highest rate permitted  by
 New York law, as the same  may be modified by  United States law of  general
 applicability), such Coupon Rate being the  rate of interest payable on  the
 Debentures to be held by the Institutional Trustee. Distributions in arrears
 for more than  one quarterly period  will bear  interest thereon  compounded
 quarterly at the then applicable Coupon Rate for each such quarterly  period
 (to the extent  permitted by applicable  law). The  term "Distributions"  as
 used herein includes cash  distributions, any such compounded  distributions
 and any  Additional  Interest payable  on  the Debentures  unless  otherwise
 stated. A Distribution is payable only to the extent that payments are  made
 in respect of the  Debentures held by the  Institutional Trustee and to  the
 extent the Institutional Trustee has funds legally available in the Property
 Account therefor. During the Fixed Rate Period, the amount of  Distributions
 payable for any period will be computed for any full quarterly  Distribution
 Period on the basis of a 360-day year of twelve 30-day months and the amount
 payable 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.  Upon  expiration
 of the Fixed Rate Period, Distributions will  be computed on the basis of  a
 360-day year  and  the  actual  number  of  days  elapsed  in  the  relevant
 Distribution Period.

      Except as  otherwise  described  below, Distributions  on  the  Capital
 Securities will  be  cumulative,  will accrue  from  the  date  of  original
 issuance and will  be payable  quarterly in arrears  on March  15, June  15,
 September 15 and December 15 of each year, commencing on September 15,  2005
 (each, a  "Distribution  Payment  Date"). Upon  submission  of  Notice,  the
 Debenture Issuer has  the right  under the  Indenture to  defer payments  of
 interest on the Debentures by extending  the interest payment period for  up
 to 20 consecutive  quarterly periods  (each such  extended interest  payment
 period together with all previous and future consecutive extensions thereof,
 is referred to herein as an "Extension Period") at any time and from time to
 time on the Debentures,  subject to the conditions  described below, and  in
 the Declaration and the Indenture, during which Extension Period no interest
 shall be due and payable (except any Additional Interest that may be due and
 payable). During any Extension Period, interest  will continue to accrue  on
 the Debentures, and interest on such accrued interest (such accrued interest
 and interest thereon referred to herein as "Deferred Interest") will  accrue
 at an annual rate equal to the Coupon Rate in effect for each such Extension
 Period, compounded quarterly from the date such Deferred Interest would have
 been payable were it not for  the Extension Period, to the extent  permitted
 by law. No  Extension Period may  end on a  date other  than a  Distribution
 Payment Date. At the end of any such Extension Period, the Debenture  Issuer
 shall pay all Deferred Interest then  accrued and unpaid on the  Debentures;
 provided, however, that no Extension Period  may extend beyond the  Maturity
 Date,  any  Redemption  Date  or  Special  Redemption  Date.  Prior  to  the
 termination of any Extension Period, the Debenture Issuer may further extend
 such Extension Period,  provided, that such  period together  with all  such
 previous and  further consecutive  extensions thereof  shall not  exceed  20
 consecutive quarterly periods, or extend beyond the Maturity Date. Upon  the
 termination of any  Extension Period and  upon the payment  of all  Deferred
 Interest, the Debenture Issuer may commence a new Extension Period,  subject
 to the foregoing requirements. No interest or Deferred Interest (except  any
 Additional Amounts that  may be due  and payable) shall  be due and  payable
 during an Extension Period, except at the end thereof, but Deferred Interest
 shall accrue upon  each installment of  interest that  would otherwise  have
 been due and payable during such Extension Period until such installment  is
 paid. If Distributions are deferred, the Distributions due shall be paid  on
 the date that  the related  Extension Period  terminates to  Holders of  the
 Securities as they  appear on  the books  and records  of the  Trust on  the
 record date immediately preceding such date. Distributions on the Securities
 must be paid  on the  dates payable (after  giving effect  to any  Extension
 Period) to the  extent that the  Trust has funds  legally available for  the
 payment of such  distributions in  the Property  Account of  the Trust.  The
 Trust's funds available for  Distribution to the  Holders of the  Securities
 will be limited to payments received from the Debenture Issuer. The  payment
 of Distributions  out of  moneys held  by  the Trust  is guaranteed  by  the
 Guarantor pursuant to the Guarantee.

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

<PAGE>

                                  ASSIGNMENT

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

 _______________________

 _______________________

 _______________________

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

 _______________________

 _______________________

 _______________________

 (Insert address and zip code of assignee),

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

                Date: _____________________

                Signature: ________________

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

                Signature Guarantee:1
                                    _______________________________

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

<PAGE>

                                 EXHIBIT A-2

                    FORM OF COMMON SECURITIES CERTIFICATE

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

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

 Certificate Number  [C-001]                  Number of Common Securities 928

                   Certificate Evidencing Common Securities
                                      of
                          Hallmark Statutory Trust I

      Hallmark Statutory Trust I, a statutory trust created under the laws of
 the  State  of  Delaware  (the  "Trust"),  hereby  certifies  that  Hallmark
 Financial Services,  Inc. (the  "Holder") is  the  registered owner  of  928
 common securities of the  Trust representing undivided beneficial  interests
 in  the  assets  of  the  Trust   (liquidation  amount  $1,000  per   Common
 Security)(the "Common Securities"). The Common Securities represented hereby
 are  issued   pursuant  to,   and  the   designation,  rights,   privileges,
 restrictions, preferences  and  other terms  and  provisions of  the  Common
 Securities shall  in all  respects  be subject  to,  the provisions  of  the
 Amended and Restated Declaration of Trust of the Trust, dated as of June 21,
 2005 among Mark Schwartz  and Mark Morrison,  as Administrators, Chase  Bank
 USA, National Association,  as Delaware Trustee,  JP Morgan  Chase Bank,  as
 Institutional Trustee, the Holder, as Sponsor, and the holders from time  to
 time of undivided beneficial interests in the assets of the Trust, including
 the designation of the terms of the Common Securities as set forth in  Annex
 I to the  Declaration, as the  same may be  amended from time  to time  (the
 "Declaration"). Capitalized terms used herein but not defined shall have the
 meaning given them in  the Declaration. The Sponsor  will provide a copy  of
 the Declaration and the Indenture to the Holder without charge upon  written
 request to the Sponsor at its principal place of business.

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

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

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

      This  Certificate  and  the  Common  Securities  evidenced  hereby  are
 governed by, and  shall be  construed in accordance  with, the  laws of  the
 State of Delaware, without regard to principles of conflict of laws.

      IN WITNESS WHEREOF, the  Trust has executed  this Certificate June  21,
 2005.

                                 Hallmark Statutory Trust I

                                 By:
                                    Name:______________________________
                                    Title:  Administrator

<PAGE>

                        [FORM OF REVERSE OF SECURITY]

      Distributions payable  on each  Common Security  will be  identical  in
 amount to the Distributions payable on each Capital Security, which is at  a
 fixed rate of 7.725% (the "Fixed Rate")  per annum until June 15, 2015  (the
 "Fixed Rate  Period:)  and  thereafter  at a  variable  per  annum  rate  of
 interest, reset quarterly, equal  to LIBOR (as  defined in the  Declaration)
 plus 3.25% (the "Variable Rate") of the stated liquidation amount of  $1,000
 per Capital Security (provided,  however, that the  Coupon Rate, defined  to
 include  the  Fixed  Rate  and  Variable   Rate,  as  applicable,  for   any
 Distribution Period may not  exceed the highest rate  permitted by New  York
 law,  as  the  same  may  be  modified  by  United  States  law  of  general
 applicability), such Coupon Rate being the  rate of interest payable on  the
 Debentures to be held by the Institutional Trustee. Distributions in arrears
 for more than  one quarterly period  will bear  interest thereon  compounded
 quarterly at the then applicable Coupon Rate for each such quarterly  period
 (to the extent  permitted by applicable  law). The  term "Distributions"  as
 used herein includes cash  distributions, any such compounded  distributions
 and any  Additional  Interest payable  on  the Debentures  unless  otherwise
 stated. A Distribution is payable only to the extent that payments are  made
 in respect of the  Debentures held by the  Institutional Trustee and to  the
 extent the Institutional Trustee has funds legally available in the Property
 Account therefor. During the Fixed Rate Period, the amount of  Distributions
 payable for  any period  will be  computed  for any  quarterly  Distribution
 period on the basis of a 360-day year of twelve 30-day months and the amount
 payable 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.  Upon  expiration
 of the Fixed Rate Period, the  amount of Distributions payable for any  full
 quarterly Distribution Period  will be computed  on the basis  of a  360-day
 year and the  actual number  of days  elapsed in  the relevant  Distribution
 Period.

      Except as  otherwise  described  below,  Distributions  on  the  Common
 Securities will  be  cumulative,  will accrue  from  the  date  of  original
 issuance and will  be payable  quarterly in arrears  on March  15, June  15,
 September 15 and December 15 of each year, commencing on September 15,  2005
 (each, a  "Distribution  Payment  Date"). Upon  submission  of  Notice,  the
 Debenture Issuer has  the right  under the  Indenture to  defer payments  of
 interest on the Debentures by extending  the interest payment period for  up
 to 20 consecutive  quarterly periods  (each such  extended interest  payment
 period,  together  with  all  previous  and  future  consecutive  extensions
 thereof, is referred  to herein as  an "Extension Period")  at any time  and
 from time to  time on the  Debentures, subject to  the conditions  described
 below and  in the  Declaration and  the  Indenture, during  which  Extension
 Period no interest shall be due and payable (except any Additional  Interest
 that may be  due and payable).  During any Extension  Period, interest  will
 continue to accrue on the Debentures, and interest on such accrued  interest
 (such accrued interest and interest thereon referred to herein as  "Deferred
 Interest") will accrue at an annual rate equal to the Coupon Rate in  effect
 for each  such Extension  Period, compounded  quarterly from  the date  such
 Deferred Interest would  have been  payable were  it not  for the  Extension
 Period, to the extent  permitted by law.  No Extension Period  may end on  a
 date other  than  a  Distribution Payment  Date.  At  the end  of  any  such
 Extension Period, the Debenture Issuer shall pay all Deferred Interest  then
 accrued and unpaid on the Debentures;  provided, however, that no  Extension
 Period may extend beyond the Maturity  Date, and Redemption Date or  Special
 Redemption Date.  Prior to  the termination  of  any Extension  Period,  the
 Debenture Issuer may  further extend such  Extension Period, provided,  that
 such  period  together  with  all  such  previous  and  further  consecutive
 extensions thereof shall  not exceed  20 consecutive  quarterly periods,  or
 extend beyond  the Maturity  Date. Upon  the  termination of  any  Extension
 Period and upon the payment of  all Deferred Interest, the Debenture  Issuer
 may commence a new Extension Period, subject to the foregoing  requirements.
 No interest  or  Deferred  Interest  shall be  due  and  payable  during  an
 Extension Period, except  at the end  thereof, but  Deferred Interest  shall
 accrue upon each installment of interest that would otherwise have been  due
 and payable during such Extension Period until such installment is paid.  If
 Distributions are deferred, the Distributions due shall be paid on the  date
 that the related Extension Period terminates to Holders of the Securities as
 they appear  on the  books and  records  of the  Trust  on the  record  date
 immediately preceding such date.

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

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

<PAGE>

                                  ASSIGNMENT

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

 _______________________

 _______________________

 _______________________

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

 _______________________

 _______________________

 _______________________

 (Insert address and zip code of assignee),

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

                Date: _____________________

                Signature: ________________

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

           Signature Guarantee:1 _________________

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

<PAGE>

                                                                    EXHIBIT B

                        FORM OF TRANSFEREE CERTIFICATE
                    TO BE EXECUTED BY ACCREDITED INVESTORS

 Hallmark Financial Services, Inc.
 Hallmark Statutory Trust I
 777 Main Street, Suite 1000
 Fort Worth, TX  76102

 Re:  Purchase of $1,000 stated liquidation amount of Capital Securities
      of Hallmark Statutory Trust I
      ---------------------------

 Ladies and Gentlemen:

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

      1.   We understand that the Capital Securities have not been registered
 under the Securities Act of 1933, as amended (the "Securities Act"), and may
 not be offered  or sold except  as permitted in  the following sentence.  We
 agree on our own behalf and on behalf  of any investor account for which  we
 are purchasing the Capital Securities that,  if we decide to offer,  sell or
 otherwise transfer any such  Capital Securities prior to  the date which  is
 the later of (i) two years (or such  shorter period  of time as permitted by
 Rule 144(k) under the  Securities Act) after  the later of  (Y) the date  of
 original issuance of the Capital Securities  and (Z) the last date on  which
 the Trust or any Affiliate (as defined in Rule 405 under the Securities Act)
 of the  Trust  was  the  holder  of any  such  Capital  Securities  (or  any
 predecessor thereto) and (ii) such later date, if any, as may be required by
 any subsequent change in applicable law (the "Resale Restriction Termination
 Date"), then such  offer, sale  or transfer  will be  made only  (a) to  the
 Company or the Trust, (b) pursuant to Rule 144A under the Securities Act, to
 a person we reasonably believe is a qualified institutional buyer under Rule
 144A (a "QIB") that purchases for  its own account or  for the account of  a
 QIB and to whom notice is given that the transfer is being made in  reliance
 on Rule  144A,  (c)  pursuant  to an  exemption  from  registration,  to  an
 "accredited investor" within the meaning  of subparagraph (a)(1), (2),  (3),
 (7) or (8) of Rule 501 under the  Securities Act that is acquiring any  such
 Capital Securities  for  its own  account  or for  the  account of  such  an
 accredited investor for investment purposes and  not with a view to, or  for
 offer or sale in connection with,  any distribution thereof in violation  of
 the Securities Act, (d)  pursuant to offers and  sales to a non-U.S.  Person
 that occur outside  the United  States pursuant  to Regulation  S under  the
 Securities Act,  or (e)  pursuant to  another available  exemption from  the
 registration requirements  of  the  Securities  Act,  and  in  each  of  the
 foregoing cases in accordance with any applicable state securities laws  and
 any requirements of law that govern the disposition of our property. If  any
 resale or other transfer  of the Capital Securities  is proposed to be  made
 pursuant to clause (c) or (e)  above, the transferor shall deliver a  letter
 from the  transferee  substantially  in  the form  of  this  letter  to  the
 Institutional Trustee as Transfer Agent, which shall provide as  applicable,
 among other things, that the transferee  is an "accredited investor"  within
 the meaning of subparagraph (a)(1), (2), (3),  (7) or (8) of Rule 501  under
 the Securities Act that is acquiring such Capital Securities for  investment
 purposes and not  for distribution in  violation of the  Securities Act.  We
 acknowledge on our behalf and on behalf of any investor account for which we
 are purchasing Capital Securities that the Trust and the Company reserve the
 right prior to any offer, sale or  other transfer pursuant to clause (c)  or
 (e) to require the delivery of any opinion of counsel, certifications and/or
 other information satisfactory to the Trust  and the Company. We  understand
 that the certificates for any Capital Security that we receive prior to  the

 Resale Restriction Termination Date will bear a legend substantially to  the
 effect of the foregoing.

      2.   We are an "accredited investor" within the meaning of subparagraph
 (a)(1), (2), (3), (7) or (8) of Rule 501 under the Securities Act purchasing
 for our own account or for the account of such an "accredited investor," and
 we are acquiring the Capital Securities for investment purposes and not with
 view to,  or for  offer or  sale  in connection  with, any  distribution  in
 violation of the Securities Act, and  we have such knowledge and  experience
 in financial and business matters as to be capable of evaluating the  merits
 and risks  of our  investment in  the  Capital Securities,  and we  and  any
 account for which we are acting are each able to bear the economic risks  of
 our or its investment.

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

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

      5.   We acknowledge  that  we either  (A)  are  not a  fiduciary  of  a
 pension, profitsharing  or  other  employee  benefit  plan  subject  to  the
 Employee Retirement Income Security  Act of 1974, as  amended or to  Section
 4975 of the  Internal Revenue Code  of 1986, as  amended (a  "Plan"), or  an
 entity whose assets include "plan assets" by reason of any Plan's investment
 in the entity and are not purchasing the Capital Securities on behalf of  or
 with "plan assets" by reason of any Plan's investment in the entity and  are
 not purchasing the Capital Securities on behalf of or with "plan assets"  of
 any Plan or (B) are eligible for the exemptive relief available under one or
 more of  the following  prohibited  transaction class  exemptions  ("PTCEs")
 issued by the U.S.  Department of Labor: PTCE  96-23, 95-60, 91-38, 90-1  or
 84-14.

      6.   We acknowledge  that each  Plan, by  its purchase  of the  Capital
 Securities, will  be deemed  to have  directed the  Trust to  invest in  the
 junior subordinated debt securities of the Company, and to have consented to
 the appointment of the institutional trustee of the Trust.

      7.   We acknowledge that the  Company, the Trust  and others will  rely
 upon  the   truth   and   accuracy  of   the   foregoing   acknowledgements,
 representations, warranties  and agreements  and agree  that if  any of  our
 acknowledgments, representations, warranties  and agreements  are no  longer
 accurate, we shall promptly  notify the applicable Placement  Agent.  If  we
 are acquiring any Capital Securities as a fiduciary or agent for one or more
 investor accounts, we represent that we have sole discretion with respect to
 each such investor account and that we have full power to make the foregoing
 acknowledgments, representations  and  agreements  on behalf  of  each  such
 investor account.

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

                                 ______________________________
                                    (Name of Purchaser)

                                 By:___________________________

                                 Date:_________________________

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

 Name:___________________________

 Address:________________________

 Taxpayer ID Number:_____________

<PAGE>

                                                                    EXHIBIT C

                        FORM OF TRANSFEROR CERTIFICATE
                           TO BE EXECUTED FOR QIBs

                                                            ________, [     ]
 Hallmark Financial Services, Inc.
 Hallmark Statutory Trust I
 777 Main Street, Suite 1000
 Fort Worth, TX  76102

 Re:  Purchase of $1,000 stated liquidation amount of Capital Securities
      of Hallmark Statutory Trust I
      -----------------------------

      Reference is hereby  made to the  Amended and  Restated Declaration  of
 Trust of  Hallmark  Statutory  Trust I,  dated  as  of June  21,  2005  (the
 "Declaration").  Capitalized terms  used but not  defined herein shall  have
 the meanings given them in the Declaration.

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

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

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

                                   ___________________________________
                                           (Name of Transferor)

                                   By:________________________________
                                   Name:______________________________
                                   Title:_____________________________

                                   Date:______________________________

<PAGE>
                                                                    EXHIBIT D

                        FORM OF TRANSFEREE CERTIFICATE
                      TO BE EXECUTED BY NON-U.S. PERSONS

 Hallmark Financial Services, Inc.
 Hallmark Statutory Trust I
 777 Main Street, Suite 1000
 Fort Worth, TX  76102

 Re:  Purchase of $1,000 stated liquidation amount of Capital Securities
      of Hallmark Statutory Trust I
      -----------------------------

      Reference is hereby  made to the  Amended and  Restated Declaration  of
 Trust of  Hallmark  Statutory  Trust I,  dated  as  of June  21,  2005  (the
 "Declaration").  Capitalized terms  used but not  defined herein shall  have
 the meanings given them in the Declaration.

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

      In accordance  with Section  8.2(b) of  the Declaration,  we do  hereby
 certify that (i) we are not a "U.S. Person" (as such term is defined in Rule
 902 under  the  Securities Act),  (ii)  we  are not  acquiring  the  Capital
 Securities for the  account or  benefit of any  U.S. Person,  and (iii)  the
 offer and  sale  of  Capital  Securities  to  us  constitutes  an  "offshore
 transaction" under Regulation S under the Securities Act.

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

                                   ___________________________________
                                           (Name of Transferor)

                                   By:________________________________
                                   Name:______________________________
                                   Title:_____________________________

                                   Date:______________________________EXHIBIT 10.1

                             GUARANTEE AGREEMENT

                      Hallmark Financial Services, Inc.

                          Dated as of June 21, 2005

<PAGE>

                              TABLE OF CONTENTS
                                                                        Page
                                                                        ----

                                  ARTICLE I
                        DEFINITIONS AND INTERPRETATION

 SECTION 1.1.   Definitions and Interpretation.......................     1

                                  ARTICLE II
              POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

 SECTION 2.1.   Powers and Duties of the Guarantee Trustee...........     4

 SECTION 2.2.   Certain Rights of the Guarantee Trustee..............     5

 SECTION 2.3.   Not Responsible for Recitals or Issuance of Guarantee     7

 SECTION 2.4.   Events of Default; Waiver............................     7

 SECTION 2.5.   Events of Default; Notice............................     8

                                 ARTICLE III
                            THE GUARANTEE TRUSTEE

 SECTION 3.1.   The Guarantee Trustee; Eligibility...................     8

 SECTION 3.2.   Appointment, Removal and Resignation of the Guarantee
                Trustee..............................................     9

                                  ARTICLE IV
                                  GUARANTEE

 SECTION 4.1.   Guarantee............................................     9

 SECTION 4.2.   Waiver of Notice and Demand..........................    10

 SECTION 4.3.   Obligations Not Affected.............................    10

 SECTION 4.4.   Rights of Holders....................................    11

 SECTION 4.5.   Guarantee of Payment.................................    11

 SECTION 4.6.   Subrogation..........................................    11

 SECTION 4.7.   Independent Obligations..............................    12

 SECTION 4.8.   Enforcement..........................................    12

                                  ARTICLE V
                  LIMITATION OF TRANSACTIONS; SUBORDINATION

 SECTION 5.1.   Limitation of Transactions...........................    12

 SECTION 5.2.   Ranking..............................................    13

                                  ARTICLE VI
                                 TERMINATION

 SECTION 6.1.   Termination..........................................    13

                                 ARTICLE VII
                               INDEMNIFICATION

 SECTION 7.1.   Exculpation..........................................    14

 SECTION 7.2.   Indemnification......................................    14

 SECTION 7.3.   Compensation; Reimbursement of Expenses..............    15

                                 ARTICLE VIII
                                MISCELLANEOUS

 SECTION 8.1.   Successors and Assigns...............................    16

 SECTION 8.2.   Amendments...........................................    16

 SECTION 8.3.   Notices..............................................    16

 SECTION 8.4.   Benefit..............................................    17

 SECTION 8.5.   Governing Law........................................    17

 SECTION 8.6.   Counterparts.........................................    17

<PAGE>

                             GUARANTEE AGREEMENT
                             -------------------

           This GUARANTEE AGREEMENT (the "Guarantee"),  dated as of June  21,
 2005, is  executed and  delivered by  Hallmark Financial  Services, Inc.,  a
 Nevada corporation  (the "Guarantor"),  and  JPMorgan Chase  Bank,  National
 Association, as trustee (the  "Guarantee Trustee"), for  the benefit of  the
 Holders (as defined herein) from time to time of the Capital Securities  (as
 defined herein) of Hallmark  Statutory Trust I,  a Delaware statutory  trust
 (the "Issuer").

           WHEREAS, pursuant to an Amended and Restated Declaration of  Trust
 (the "Declaration"), dated  as of June  21, 2005,  among the  administrators
 named therein of the Issuer, Hallmark Financial Services, Inc., as  sponsor,
 JPMorgan Chase Bank, National Association, as Institutional Trustee, and the
 Holders from time to time of undivided beneficial interests in the assets of
 the Issuer, the Issuer is issuing  on the date hereof securities, having  an
 aggregate liquidation amount  of up to  $30,000,000, designated the  capital
 securities (the "Capital Securities"); and

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

           NOW, THEREFORE, in consideration of the purchase by each Holder of
 the Capital Securities,  which purchase  the Guarantor  hereby agrees  shall
 benefit the Guarantor,  the Guarantor executes  and delivers this  Guarantee
 for the benefit of the Holders.

                                  ARTICLE I
                        DEFINITIONS AND INTERPRETATION

 SECTION 1.1.  Definitions and Interpretation.
               -------------------------------
           In this Guarantee, unless the context otherwise requires:

           (a) capitalized  terms used in  this Guarantee but  not defined in
      the preamble above  have the respective  meanings assigned  to them  in
      this Section 1.1;

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

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

           (d) all references  in this Guarantee to Articles and Sections are
      to Articles and Sections of this Guarantee, unless otherwise specified;

           (e) terms  defined in the Declaration as  of the date of execution
      of this Guarantee have the same  meanings when used in this  Guarantee,
      unless otherwise  defined  in  this Guarantee  or  unless  the  context
      otherwise requires; and

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

            "Beneficiaries"  means  any  Person  to  whom  the  Issuer  is  or
 hereafter becomes indebted or liable.

           "Corporate Trust Office" means the office of the Guarantee Trustee
 at which the corporate trust business of the Guarantee Trustee shall, at any
 particular time, be principally administered.

           "Covered Person" means any Holder of Capital Securities.

           "Debentures" means the junior subordinated debentures of  Hallmark
 Financial Services, Inc., designated the Junior Subordinated Debt Securities
 due 2035, held by the Institutional Trustee (as defined in the  Declaration)
 of the Issuer.

            "Event of Default" has the meaning set forth in Section 2.4.

            "Guarantee   Payments"   means    the   following   payments   or
 distributions, without duplication, with respect to the Capital  Securities,
 to the extent not  paid or made  by the Issuer:  (i) any accrued and  unpaid
 Distributions (as defined in the Declaration) which are required to be  paid
 on such Capital Securities to the  extent the Issuer has funds available  in
 the Property Account (as defined in the Declaration) therefor at such  time,
 (ii) price payable  upon the  redemption of  any Capital  Securities to  the
 extent the Issuer has  funds available in the  Property Account therefor  at
 such time, with respect  to any Capital Securities  that are (1) called  for
 redemption by the Issuer, or (2) mandatorily redeemed by the Issuer, in each
 case, in accordance  with the terms  of such Capital  Securities, and  (iii)
 upon a  voluntary or  involuntary  liquidation, dissolution,  winding-up  or
 termination of the Issuer (other than in connection with the distribution of
 Debentures to the Holders of the Capital Securities in exchange therefor  as
 provided in  the  Declaration), the  lesser  of  (a) the  aggregate  of  the
 liquidation amount  of the  Capital Securities  and all  accrued and  unpaid
 Distributions on  the Capital  Securities to  the date  of payment,  to  the
 extent the Issuer has  funds available in the  Property Account therefor  at
 such time, and (b)  the amount of assets  of the Issuer remaining  available
 for distribution to Holders in liquidation of the Issuer after  satisfaction
 of liabilities to creditors of the Issuer as required by applicable law  (in
 either case, the "Liquidation Distribution").

           "Guarantee   Trustee"   means   JPMorgan   Chase   Bank,  National
 Association, until a Successor Guarantee Trustee has been appointed and  has
 accepted such  appointment  pursuant to  the  terms of  this  Guarantee  and
 thereafter means each such Successor Guarantee Trustee.

           "Holder" means any Person in whose name any Capital Securities are
 registered on the books and records of the Issuer; provided, however,  that,
 in determining whether the  holders of the  requisite percentage of  Capital
 Securities have  given any  request, notice,  consent or  waiver  hereunder,
 "Holder" shall not include the Guarantor or any Affiliate of the Guarantor.

           "Indemnified  Person"  means  the  Guarantee  Trustee   (including
 in  its  individual capacity),  any  Affiliate  of  the  Guarantee  Trustee,
 or any  officers,  directors,  shareholders,  members,  partners, employees,
 representatives, nominees, custodians or agents of the Guarantee Trustee.

            "Indenture" means  the  Indenture,  dated as  of  June  21, 2005,
 between the  Guarantor and  JPMorgan Chase  Bank, National  Association,  as
 trustee, and  any  indenture  supplemental thereto  pursuant  to  which  the
 Debentures are to be issued to the Institutional Trustee of the Issuer.

            "Liquidation Distribution"  has  the  meaning  set  forth  in the
 definition of "Guarantee Payments" herein.

            "Majority in liquidation amount  of the Capital Securities" means
 Holder(s) of outstanding Capital Securities, voting together as a class, but
 separately from the holders  of Common Securities, of  more than 50% of  the
 aggregate  liquidation  amount  (including  the  stated amount that would be
 paid on  redemption, liquidation  or  otherwise,  plus  accrued  and  unpaid
 Distributions to, but excluding, the date upon which the voting  percentages
 are determined) of all Capital Securities then outstanding.

            "Obligations" means any  costs, expenses or  liabilities (but not
 including  liabilities  related  to  taxes)   of  the  Issuer,  other   than
 obligations of the  Issuer to  pay to holders  of any  Trust Securities  the
 amounts due such holders pursuant to the terms of the Trust Securities.

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

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

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

           (i) 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

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

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

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

            "Successor Guarantee Trustee" means a successor Guarantee Trustee
 possessing the qualifications to act as Guarantee Trustee under Section 3.1.

            "Trust Securities"  means the  Common Securities  and the Capital
 Securities collectively.

                                 ARTICLE II
              POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

 SECTION 2.1.  Powers and Duties of the Guarantee Trustee.
               -------------------------------------------
           (a) This Guarantee  shall be held by the Guarantee Trustee for the
      benefit of the  Holders of the  Capital Securities,  and the  Guarantee
      Trustee shall not transfer this Guarantee to any Person except a Holder
      of Capital Securities exercising his or her rights pursuant to  Section
      4.4(b) or  to  a Successor  Guarantee  Trustee on  acceptance  by  such
      Successor Guarantee  Trustee of  its appointment  to act  as  Successor
      Guarantee Trustee.  The  right, title  and  interest of  the  Guarantee
      Trustee shall automatically  vest in any  Successor Guarantee  Trustee,
      and such vesting and cessation of  title shall be effective whether  or
      not conveyancing documents have been executed and delivered pursuant to
      the appointment of such Successor Guarantee Trustee.

           (b) If an Event of Default actually known to a Responsible Officer
      of the Guarantee Trustee has occurred and is continuing, the  Guarantee
      Trustee shall enforce this Guarantee for the benefit of the Holders  of
      the Capital Securities.

           (c) The  Guarantee Trustee, before the  occurrence of any Event of
      Default and after the curing or  waiving of all Events of Default  that
      may have occurred, shall undertake to  perform only such duties as  are
      specifically set  forth in  this Guarantee,  and no  implied  covenants
      shall be read  into this Guarantee  against the  Guarantee Trustee.  In
      case an  Event of  Default has  occurred (that  has not  been cured  or
      waived  pursuant  to  Section  2.4(b))  and  is  actually  known  to  a
      Responsible Officer  of the  Guarantee Trustee,  the Guarantee  Trustee
      shall exercise  such of  the rights  and powers  vested in  it by  this
      Guarantee, and use the  same degree of care  and skill in its  exercise
      thereof,  as  a  prudent  person  would  exercise  or  use  under   the
      circumstances in the conduct of his or her own affairs.

           (d) No  provision of this Guarantee  shall be construed to relieve
      the Guarantee 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 any Event of Default and after
           the curing  or waiving  of all  Events of  Default that  may  have
           occurred:

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

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

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

                (iii) the Guarantee 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 written direction of the Holders of a Majority
           in liquidation amount  of the Capital  Securities relating to  the
           time, method and place of conducting any proceeding for any remedy
           available to the  Guarantee Trustee,  or exercising  any trust  or
           power conferred upon the  Guarantee Trustee under this  Guarantee;
           and

                (iv) no  provision  of  this  Guarantee  shall  require   the
           Guarantee 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
           the Guarantee Trustee shall have reasonable grounds for  believing
           that the repayment of such funds  is not reasonably assured to  it
           under the  terms of  this Guarantee,  or security  and  indemnity,
           reasonably satisfactory  to the  Guarantee Trustee,  against  such
           risk or liability is not reasonably assured to it.

 SECTION 2.2.  Certain Rights of the Guarantee Trustee.
               ----------------------------------------
           (a)  Subject to the provisions of Section 2.1:

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

                (ii) Any  direction or act  of the  Guarantor contemplated by
           this Guarantee  shall be  sufficiently evidenced  by an  Officer's
           Certificate.

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

                (iv) The Guarantee Trustee shall have no  duty to see to  any
           recording, filing  or  registration  of any  instrument  or  other
           writing (or any rerecording, refiling or reregistration thereof).

                (v) The  Guarantee Trustee  may consult  with counsel  of its
           selection, and the advice or opinion of such counsel with  respect
           to legal  matters shall  be full  and complete  authorization  and
           protection in respect of any action taken, suffered  or omitted by
           it hereunder in good faith and  in accordance with such advice  or
           opinion. Such counsel may  be counsel to the  Guarantor or any  of
           its Affiliates and may include any of its employees. The Guarantee
           Trustee shall  have the  right at  any time  to seek  instructions
           concerning the administration of this Guarantee from any court  of
           competent jurisdiction.

                (vi) The Guarantee Trustee shall  be under  no obligation  to
           exercise any  of  the  rights  or powers  vested  in  it  by  this
           Guarantee at the request or direction  of any Holder, unless  such
           Holder shall have provided to the Guarantee Trustee such  security
           and indemnity, reasonably satisfactory  to the Guarantee  Trustee,
           against  the  costs,  expenses  (including  attorneys'  fees   and
           expenses and  the  expenses  of the  Guarantee  Trustee's  agents,
           nominees or custodians) and liabilities that might be incurred  by
           it in complying  with such  request or  direction, including  such
           reasonable advances as may be requested by the Guarantee  Trustee;
           provided,  however,  that  nothing   contained  in  this   Section
           2.2(a)(vi) shall be taken to  relieve the Guarantee Trustee,  upon
           the occurrence  of  an Event  of  Default, of  its  obligation  to
           exercise the rights and powers vested in it by this Guarantee.

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

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

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

                (x) Whenever  in  the  administration of  this  Guarantee the
           Guarantee Trustee shall deem it desirable to receive  instructions
           with respect to enforcing any remedy or right or taking any  other
           action  hereunder,   the  Guarantee   Trustee  (A)   may   request
           instructions from the Holders of a Majority in liquidation  amount
           of the Capital  Securities, (B)  may refrain  from enforcing  such
           remedy  or  right   or  taking  such   other  action  until   such
           instructions  are  received   and  (C)  shall   be  protected   in
           conclusively  relying  on  or  acting  in  accordance  with   such
           instructions.

                (xi) The Guarantee Trustee shall not be liable for any action
           taken, suffered, or omitted  to be taken by  it in good faith  and
           reasonably  believed  by  it  to  be  authorized  or  within   the
           discretion  or  rights  or  powers  conferred  upon  it  by   this
           Guarantee.

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

 SECTION 2.3.  Not Responsible for Recitals or Issuance of Guarantee.
               ------------------------------------------------------
            The recitals contained  in this Guarantee  shall be  taken as the
 statements of the Guarantor, and the  Guarantee Trustee does not assume  any
 responsibility  for  their  correctness.  The  Guarantee  Trustee  makes  no
 representation as to the validity or sufficiency of this Guarantee.

 SECTION 2.4.  Events of Default; Waiver.
               --------------------------
           (a) An  Event of Default under this  Guarantee will occur upon the
      failure of  the  Guarantor to  perform  any  of its  payment  or  other
      obligations hereunder.

           (b) The Holders of a Majority in liquidation amount of the Capital
      Securities may,  voting or  consenting as  a class,  on behalf  of  the
      Holders of  all of  the Capital  Securities, waive  any past  Event  of
      Default and  its consequences.  Upon such  waiver,  any such  Event  of
      Default shall cease to exist, and  shall be deemed to have been  cured,
      for every purpose of this Guarantee, but no such waiver shall extend to
      any subsequent or other default or Event of Default or impair any right
      consequent thereon.

 SECTION 2.5.  Events of Default; Notice.
               --------------------------
           (a) The  Guarantee   Trustee  shall,  within  90  days  after  the
      occurrence of  an  Event of  Default,  transmit by  mail,  first  class
      postage prepaid, to the Holders of  the Capital Securities, notices  of
      all Events of Default  actually known to a  Responsible Officer of  the
      Guarantee Trustee,  unless such  defaults have  been cured  before  the
      giving of such  notice; provided, however,  that the Guarantee  Trustee
      shall be  protected in  withholding such  notice if  and so  long as  a
      Responsible Officer of the Guarantee  Trustee in good faith  determines
      that the withholding of such notice is in the interests of the  Holders
      of the Capital Securities.

           (b) The  Guarantee Trustee shall not  be charged with knowledge of
      any Event of Default unless the  Guarantee Trustee shall have  received
      written notice thereof from  the Guarantor or a  Holder of the  Capital
      Securities, or a Responsible Officer  of the Guarantee Trustee  charged
      with the administration of this  Guarantee shall have actual  knowledge
      thereof.

                                 ARTICLE III
                            THE GUARANTEE TRUSTEE

 SECTION 3.1.  The Guarantee Trustee; Eligibility.
               -----------------------------------
           (a) There shall at all times be a Guarantee Trustee which shall:

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

                (ii) be  a corporation or  national association organized and
           doing business under the laws of  the United States of America  or
           any state or territory thereof or of the District of Columbia,  or
           Person authorized  under such  laws  to exercise  corporate  trust
           powers, having a combined  capital and surplus  of at least  Fifty
           million U.S. dollars ($50,000,000), and subject to supervision  or
           examination by federal, state, territorial or District of Columbia
           authority. If such corporation  or national association  publishes
           reports of condition at least annually, pursuant to law or to  the
           requirements of the supervising or examining authority referred to
           above, then,  for the  purposes of  this Section  3.1(a)(ii),  the
           combined capital  and  surplus  of such  corporation  or  national
           association shall be deemed to be its combined capital and surplus
           as set forth in its most recent report of condition so published.

           (b) If  at  any  time  the Guarantee  Trustee  shall  cease  to be
      eligible to so act  under Section 3.1(a),  the Guarantee Trustee  shall
      immediately resign  in the  manner and  with the  effect set  forth  in
      Section 3.2(c).

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

 SECTION 3.2.  Appointment, Removal and Resignation of the Guarantee Trustee.
               --------------------------------------------------------------
           (a) Subject  to  Section  3.2(b),  the  Guarantee  Trustee  may be
      appointed or removed without cause at any time by the Guarantor  except
      during an Event of Default.

           (b) The Guarantee  Trustee shall not be removed in accordance with
      Section 3.2(a) until a Successor  Guarantee Trustee has been  appointed
      and has accepted  such appointment  by written  instrument executed  by
      such Successor Guarantee Trustee and delivered to the Guarantor.

           (c) The  Guarantee Trustee appointed  to office  shall hold office
      until a Successor Guarantee Trustee shall have been appointed or  until
      its removal  or  resignation. The  Guarantee  Trustee may  resign  from
      office  (without  need  for  prior  or  subsequent  accounting)  by  an
      instrument in writing executed by  the Guarantee Trustee and  delivered
      to the  Guarantor, which  resignation shall  not  take effect  until  a
      Successor Guarantee Trustee  has been appointed  and has accepted  such
      appointment by  an instrument  in writing  executed by  such  Successor
      Guarantee Trustee  and delivered  to the  Guarantor and  the  resigning
      Guarantee Trustee.

           (d) If  no Successor Guarantee  Trustee shall  have been appointed
      and accepted appointment as provided in this Section 3.2 within 60 days
      after  delivery  of  an  instrument  of  removal  or  resignation,  the
      Guarantee Trustee resigning or being removed may petition any court  of
      competent  jurisdiction  for  appointment  of  a  Successor   Guarantee
      Trustee. Such court  may thereupon, after  prescribing such notice,  if
      any, as it may deem proper, appoint a Successor Guarantee Trustee.

           (e) No Guarantee Trustee shall be liable for the acts or omissions
      to act of any Successor Guarantee Trustee.

           (f) Upon  termination of this Guarantee  or removal or resignation
      of the Guarantee Trustee  pursuant to this  Section 3.2, the  Guarantor
      shall pay to the Guarantee Trustee  all amounts owing to the  Guarantee
      Trustee under  Sections  7.2  and  7.3 accrued  to  the  date  of  such
      termination, removal or resignation.

                                 ARTICLE IV
                                  GUARANTEE

 SECTION 4.1.  Guarantee.
               ----------
           (a) The Guarantor irrevocably and unconditionally agrees to pay in
      full to  the Holders  the Guarantee  Payments (without  duplication  of
      amounts theretofore paid by the Issuer), as and when due, regardless of
      any defense (except as defense of payment by the Issuer), right of set-
      off or counterclaim that the Issuer may have or assert. The Guarantor's
      obligation to  make a  Guarantee Payment  may  be satisfied  by  direct
      payment of the required amounts by  the Guarantor to the Holders or  by
      causing the Issuer to pay such amounts to the Holders.

           (b) The  Guarantor  hereby  also  agrees  to  assume  any  and all
      Obligations of the Issuer and, in the event any such Obligation is  not
      so assumed, subject to the terms  and conditions hereof, the  Guarantor
      hereby irrevocably and unconditionally  guarantees to each  Beneficiary
      the full payment, when and as due,  of any and all Obligations to  such
      Beneficiaries. This Guarantee is intended  to be for the  Beneficiaries
      who have received notice hereof.

 SECTION 4.2.  Waiver of Notice and Demand.
               ----------------------------
           The Guarantor hereby waives notice of acceptance of this Guarantee
 and of any liability to which  it applies or may apply, presentment,  demand
 for payment, any right to require  a proceeding first against the Issuer  or
 any other Person before proceeding against the Guarantor, protest, notice of
 nonpayment, notice of dishonor, notice of  redemption and all other  notices
 and demands.

 SECTION 4.3.  Obligations Not Affected.
               -------------------------
           The obligations, covenants, agreements and duties of the Guarantor
 under this Guarantee shall in  no way be affected  or impaired by reason  of
 the happening from time to time of any of the following:

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

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

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

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

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

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

           (g) any   other  circumstance  whatsoever   that  might  otherwise
      constitute a legal or equitable discharge or defense of a guarantor, it
      being the  intent of  this  Section 4.3  that  the obligations  of  the
      Guarantor hereunder shall be absolute  and unconditional under any  and
      all circumstances.

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

 SECTION 4.4.  Rights of Holders.
               ------------------
           (a) The Holders of a Majority in liquidation amount of the Capital
      Securities have  the right  to direct  the time,  method and  place  of
      conducting any proceeding  for any  remedy available  to the  Guarantee
      Trustee in respect of this Guarantee  or to direct the exercise of  any
      trust  or  power  conferred  upon  the  Guarantee  Trustee  under  this
      Guarantee; provided, however,  that (subject to  Sections 2.1 and  2.2)
      the Guarantee Trustee  shall have the  right to decline  to follow  any
      such direction  if  the  Guarantee Trustee  shall  determine  that  the
      actions so directed would  be unjustly prejudicial  to the Holders  not
      taking part in such direction or if the Guarantee Trustee being advised
      by legal counsel determines that the  action or proceeding so  directed
      may not lawfully be taken or if the Guarantee Trustee in good faith  by
      its board  of directors  or trustees,  executive committee  or a  trust
      committee of directors  or trustees and/or  Responsible Officers  shall
      determine that the action or proceeding  so directed would involve  the
      Guarantee Trustee in personal liability.

           (b) Any  Holder  of  Capital  Securities  may  institute  a  legal
      proceeding directly  against the  Guarantor  to enforce  the  Guarantee
      Trustee's rights  under this  Guarantee,  without first  instituting  a
      legal proceeding against the Issuer, the Guarantee Trustee or any other
      Person. The Guarantor waives  any right or remedy  to require that  any
      such action be brought first against the Issuer, the Guarantee  Trustee
      or  any  other  Person  before  so  proceeding  directly  against   the
      Guarantor.

 SECTION 4.5.  Guarantee of Payment.
               ---------------------
            This  Guarantee  creates  a  guarantee  of  payment  and  not  of
 collection.

 SECTION 4.6.  Subrogation.
               ------------
            The Guarantor shall be  subrogated to all (if  any) rights of the
 Holders of Capital Securities against the  Issuer in respect of any  amounts
 paid to  such  Holders by  the  Guarantor under  this  Guarantee;  provided,
 however, that the  Guarantor shall  not (except  to the  extent required  by
 applicable provisions of law) be entitled  to enforce or exercise any  right
 that it may acquire by way of subrogation or any indemnity, reimbursement or
 other agreement, in all cases as  a result of payment under this  Guarantee,
 if, after giving effect to any such payment, any amounts are due and  unpaid
 under this  Guarantee. If  any amount  shall  be paid  to the  Guarantor  in
 violation of  the preceding  sentence, the  Guarantor  agrees to  hold  such
 amount in trust for the Holders and to pay over such amount to the Holders.

 SECTION 4.7.  Independent Obligations.
               ------------------------
            The Guarantor  acknowledges  that its  obligations  hereunder are
 independent of the  obligations of the  Issuer with respect  to the  Capital
 Securities and that the Guarantor shall be liable as principal and as debtor
 hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
 notwithstanding the occurrence of any event  referred to in subsections  (a)
 through (g), inclusive, of Section 4.3 hereof.

 SECTION 4.8.  Enforcement.
               ------------
            A  Beneficiary  may  enforce  the  Obligations  of  the Guarantor
 contained  in  Section 4.1(b)  directly  against  the  Guarantor,  and   the
 Guarantor waives any right or remedy  to require that any action be  brought
 against the Issuer or any other  person or entity before proceeding  against
 the Guarantor.

            The Guarantor shall be  subrogated to all rights  (if any) of any
 Beneficiary against  the  Issuer in  respect  of  any amounts  paid  to  the
 Beneficiaries by the Guarantor under this Guarantee; provided, however, that
 the Guarantor  shall  not  (except to  the  extent  required  by  applicable
 provisions of law) be entitled to enforce or exercise any rights that it may
 acquire by  way of  subrogation or  any  indemnity, reimbursement  or  other
 agreement, in all  cases as a  result of payment  under this Guarantee,  if,
 after giving effect to  such payment, any amounts  are due and unpaid  under
 this Guarantee.

                                  ARTICLE V
                  LIMITATION OF TRANSACTIONS; SUBORDINATION

 SECTION 5.1.  Limitation of Transactions.
               ---------------------------
           So long as any Capital Securities remain outstanding, if (a) there
 shall have  occurred  and be  continuing  an Event  of  Default or  (b)  the
 Guarantor shall  have  selected  an Extension  Period  as  provided  in  the
 Declaration and such period, or any extension thereof, shall have  commenced
 and be  continuing,  then the  Guarantor  may not  (x)  declare or  pay  any
 dividends or  distributions on,  or redeem,  purchase,  acquire, or  make  a
 liquidation payment with respect to, any of the Guarantor's capital stock or
 (y) make any payment of principal of or  interest or premium, if any, on  or
 repay, repurchase or redeem any debt  securities of the Guarantor that  rank
 pari passu in  all respects  with or junior  in interest  to the  Debentures
 (other than (i) payments under this Guarantee, (ii) repurchases, redemptions
 or other acquisitions  of shares of  capital stock of  the Guarantor (A)  in
 connection with  any  employment contract,  benefit  plan or  other  similar
 arrangement with or  for the  benefit of  one or  more employees,  officers,
 directors, or consultants, (B) in connection with a dividend reinvestment or
 stockholder stock purchase plan  or (C) in connection  with the issuance  of
 capital  stock  of  the  Guarantor   (or  securities  convertible  into   or
 exercisable for  such capital  stock), as  consideration in  an  acquisition
 transaction entered into prior to the occurrence of the Event of Default  or
 the applicable  Extension  Period,  (iii)  as  a  result  of  any  exchange,
 reclassification, combination or conversion  of any class  or series of  the
 Guarantor's capital  stock (or  any capital  stock of  a subsidiary  of  the
 Guarantor) for any class  or series of the  Guarantor's capital stock or  of
 any class or series of the Guarantor's indebtedness for any class or  series
 of the Guarantor's capital stock, (iv) the purchase of fractional  interests
 in shares of  the Guarantor's capital  stock pursuant to  the conversion  or
 exchange provisions of such capital stock or the security being converted or
 exchanged, (v)  any  declaration  of  a  dividend  in  connection  with  any
 stockholder's rights  plan,  or  the issuance  of  rights,  stock  or  other
 property  under  any  stockholder's  rights  plan,  or  the  redemption   or
 repurchase of rights pursuant thereto, or  (vi) any dividend in the form  of
 stock, warrants, options  or other rights  where the dividend  stock or  the
 stock issuable upon exercise  of such warrants, options  or other rights  is
 the same stock as  that on which the  dividend is being  paid or ranks  pari
 passu with or junior to such stock).

 SECTION 5.2.  Ranking.
               --------
            This Guarantee  will constitute  an  unsecured obligation  of the
 Guarantor and will rank  subordinate and junior in  right of payment to  all
 present and future Senior Indebtedness (as defined in the Indenture) of  the
 Guarantor. By their  acceptance thereof, each  Holder of Capital  Securities
 agrees to the foregoing provisions of this Guarantee and the other terms set
 forth herein.

            The right of the Guarantor to  participate in any distribution of
 assets of any of its subsidiaries upon any such subsidiary's liquidation  or
 reorganization or otherwise is subject to  the prior claims of creditors  of
 that subsidiary, except to the extent the Guarantor may itself be recognized
 as a creditor of that subsidiary.  Accordingly, the Guarantor's  obligations
 under this Guarantee will  be effectively subordinated  to all existing  and
 future liabilities  of the  Guarantor's subsidiaries,  and claimants  should
 look only to  the assets  of the Guarantor  for payments  thereunder.   This
 Guarantee does not  limit the  incurrence or  issuance of  other secured  or
 unsecured debt  of  the  Guarantor, including  Senior  Indebtedness  of  the
 Guarantor, under any  indenture or agreement  that the  Guarantor may  enter
 into in the future or otherwise.

                                 ARTICLE VI
                                 TERMINATION

 SECTION 6.1.  Termination.
               ------------
           This Guarantee shall  terminate as to  the Capital Securities  (i)
 upon full  payment of  the  price payable  upon  redemption of  all  Capital
 Securities then  outstanding,  (ii) upon  the  distribution of  all  of  the
 Debentures to the  Holders of all  of the Capital  Securities or (iii)  upon
 full payment of the amounts payable in accordance with the Declaration  upon
 dissolution of the Issuer. This Guarantee  will continue to be effective  or
 will be reinstated, as the case may be, if at any time any Holder of Capital
 Securities  must  restore  payment  of  any  sums  paid  under  the  Capital
 Securities or under this Guarantee.

                                 ARTICLE VII
                               INDEMNIFICATION

 SECTION 7.1.  Exculpation.
               ------------
           (a) No  Indemnified  Person  shall   be  liable,  responsible   or
      accountable in damages  or otherwise to  the Guarantor  or any  Covered
      Person for any loss, damage or claim  incurred by reason of any act  or
      omission of such Indemnified  Person in good  faith in accordance  with
      this Guarantee and in a manner that such Indemnified Person  reasonably
      believed to be  within the  scope of  the authority  conferred on  such
      Indemnified Person  by  this  Guarantee  or  by  law,  except  that  an
      Indemnified Person shall be liable for  any such loss, damage or  claim
      incurred by reason of such  Indemnified Person's negligence or  willful
      misconduct with respect to such acts or omissions.

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

 SECTION 7.2.  Indemnification.
               ----------------
           (a) The Guarantor agrees to indemnify each Indemnified Person for,
      and to hold each Indemnified Person harmless against, any and all loss,
      liability, damage,  claim or  expense  incurred without  negligence  or
      willful misconduct on the part of  the Indemnified Person, arising  out
      of or in connection with the acceptance or administration of the  trust
      or trusts  hereunder,  including  but not  limited  to  the  costs  and
      expenses  (including  reasonable  legal  fees  and  expenses)  of   the
      Indemnified  Person  defending  itself against,  or  investigating, any
      claim or liability in  connection with the  exercise or performance  of
      any of  the  Indemnified  Person's  powers  or  duties  hereunder.  The
      obligation to indemnify as set forth in this Section 7.2 shall  survive
      the resignation or removal of the Guarantee Trustee and the termination
      of this Guarantee.

           (b) Promptly  after receipt  by an  Indemnified Person  under this
      Section  7.2  of  notice  of  the  commencement  of  any  action,  such
      Indemnified Person will, if  a claim in respect  thereof is to be  made
      against the Guarantor under this Section  7.2, notify the Guarantor  in
      writing of the commencement thereof; but  the failure so to notify  the
      Guarantor (i)  will  not relieve  the  Guarantor from  liability  under
      paragraph (a) above unless and to the extent that the Guarantor did not
      otherwise learn  of  such  action  and  such  failure  results  in  the
      forfeiture by the Guarantor of substantial rights and defenses and (ii)
      will not, in any event, relieve  the Guarantor from any obligations  to
      any  Indemnified  Person  other  than  the  indemnification  obligation
      provided in paragraph  (a) above. The  Guarantor shall  be entitled  to
      appoint counsel of the Guarantor's choice  at  the Guarantor's  expense
      to  represent  the  Indemnified   Person  in   any  action  for   which
      indemnification is  sought  (in  which case  the  Guarantor  shall  not
      thereafter be responsible  for the fees  and expenses  of any  separate
      counsel retained by  the Indemnified Person  or Persons  except as  set
      forth below); provided, however, that such counsel shall be  reasonably
      satisfactory to the Indemnified Person. Notwithstanding the Guarantor's
      election to appoint counsel to represent the Indemnified Person in  any
      action, the Indemnified Person shall have the right to employ  separate
      counsel (including local  counsel), and  the Guarantor  shall bear  the
      reasonable fees, costs and expenses of such separate counsel (and local
      counsel), if  (i) the  use  of  counsel  chosen  by  the  Guarantor  to
      represent the  Indemnified Person  would present  such counsel  with  a
      conflict of interest, (ii)  the actual or  potential defendants in,  or
      targets of, any such action include both the Indemnified Person and the
      Guarantor and the  Indemnified Person shall  have reasonably  concluded
      that  there  may  be  legal  defenses  available  to  it  and/or  other
      Indemnified Persons which  are different  from or  additional to  those
      available to the Guarantor, (iii) the Guarantor shall not have employed
      counsel reasonably satisfactory to the Indemnified Person to  represent
      the Indemnified Person  within a reasonable  time after  notice of  the
      institution of such action  or (iv) the  Guarantor shall authorize  the
      Indemnified Person to  employ separate counsel  at the  expense of  the
      Guarantor. The Guarantor will not, without the prior written consent of
      the Indemnified Persons, settle or compromise  or consent to the  entry
      of any  judgment  with respect  to  any pending  or  threatened  claim,
      action, suit  or  proceeding in  respect  of which  indemnification  or
      contribution may be  sought hereunder (whether  or not the  Indemnified
      Persons are actual or potential parties to such claim or action) unless
      such  settlement,  compromise  or  consent  includes  an  unconditional
      release of each Indemnified  Person from all  liability arising out  of
      such claim, action, suit or proceeding.

 SECTION 7.3.  Compensation; Reimbursement of Expenses.
               ----------------------------------------
           The Guarantor agrees:

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

           (b) except  as otherwise  expressly provided  herein, to reimburse
      the  Guarantee  Trustee  upon  request  for  all  reasonable  expenses,
      disbursements and advances incurred  or made by  it in accordance  with
      any provision of this Guarantee (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 the
      negligence or willful misconduct of the Guarantee Trustee.

            The provisions of this Section  7.3 shall survive the resignation
 or removal of the Guarantee Trustee and the termination of this Guarantee.

                                ARTICLE VIII
                                MISCELLANEOUS

 SECTION 8.1.  Successors and Assigns.
               -----------------------
            All guarantees and  agreements contained in  this Guarantee shall
 bind the successors, assigns, receivers, trustees and representatives of the
 Guarantor and  shall inure  to the  benefit of  the Holders  of the  Capital
 Securities then  outstanding.  Except  in  connection  with  any  merger  or
 consolidation of the  Guarantor with  or into  another entity  or any  sale,
 transfer or lease  of the  Guarantor's assets  or capital  stock to  another
 entity, in  each case  to  the extent  permitted  under the  Indenture,  the
 Guarantor may not assign its rights  or delegate its obligations under  this
 Guarantee without  the  prior approval  of  the  Holders of  a  Majority  in
 liquidation amount of the Capital Securities.

 SECTION 8.2.  Amendments.
               -----------
            Except with respect to  any changes that  do not adversely affect
 the powers,  preferences, rights  or interests  of  Holders of  the  Capital
 Securities in any material respect (in which case no consent of Holders will
 be required), this Guarantee may be amended only with the prior approval  of
 the Holders of a Majority in  liquidation amount of the Capital  Securities.
 The provisions of the Declaration with  respect to amendments thereof  shall
 apply equally with respect to amendments of the Guarantee.

 SECTION 8.3.  Notices.
               --------
            All notices provided for  in this Guarantee  shall be in writing,
 duly signed  by  the party  giving  such  notice, and  shall  be  delivered,
 telecopied or mailed by first class mail, as follows:

           (a) If given  to the Guarantee Trustee, at the Guarantee Trustee's
      mailing address set forth below (or such other address as the Guarantee
      Trustee may give notice of to the Holders of the Capital Securities):

                JPMorgan Chase Bank, National Association
                600 Travis Street, 50th Floor
                Houston, Texas 77002
                Attention:  Worldwide Securities Services
                Hallmark Statutory Trust I
                Telecopy:  (713) 216-2101
                Telephone: (713) 216-4181

           (b) If given  to the Guarantor, at the Guarantor's mailing address
      set forth below (or such other address as the Guarantor may give notice
      of to  the Holders  of  the Capital  Securities  and to  the  Guarantee
      Trustee):

                Hallmark Financial Services, Inc.
                777 Main Street, Suite 1000
                Fort Worth, TX  76102
                Attention: Mark J. Morrison
                Telecopy: 817-348-1815
                Telephone: 817-348-1728

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

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

 SECTION 8.4.  Benefit.
               --------
            This Guarantee is  solely for the  benefit of the  Holders of the
 Capital Securities  and,  subject  to  Section  2.1(a),  is  not  separately
 transferable from the Capital Securities.

 SECTION 8.5.  Governing Law.
               --------------
            THIS GUARANTEE SHALL BE GOVERNED  BY, AND CONSTRUED IN ACCORDANCE
 WITH, THE LAW OF THE STATE OF NEW  YORK, WITHOUT REGARD TO CONFLICT OF  LAWS
 PRINCIPLES THEREOF.

 SECTION 8.6.  Counterparts.
               -------------
           This Guarantee  may  contain  more than  one  counterpart  of  the
 signature page and  this Guarantee may  be executed by  the affixing of  the
 signature of  the  Guarantor  and  the Guarantee  Trustee  to  any  of  such
 counterpart signature pages. All of  such counterpart signature pages  shall
 be read as  though one, and  they shall have  the same force  and effect  as
 though all of the signers had signed a single signature page.

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

                                 Hallmark Financial Services, Inc.,
                                 as Guarantor

                                 By: ______________________________
                                 Name: ____________________________
                                 Title: ___________________________

                                 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
                                 as Guarantee Trustee

                                 By: ______________________________
                                 Name: ____________________________
                                 Title: ___________________________

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