Document:

Exhibit 10.1

                            ASSET PURCHASE AGREEMENT
                            ------------------------

         THIS ASSET PURCHASE AGREEMENT (this "Agreement") is dated as of
November 10, 2006 by and among CETCO Oilfield Services Company, a Delaware
corporation ("Buyer"), and Nitrogen Specialty Company, L.L.C., a Louisiana
limited liability company ("NSC"); Christopher M. Abide ("CA"); Gerald A. Boelte
("GB"); Kemberlia K. Ducote ("KD"); Cecile Gervais Dufrene, individually and as
Independent Administratrix of the Succession of James Joseph Dufrene, also known
as James Joseph Dufrene, Sr., Roy T. Sembera ("RS") and Wayne P. Whitman ("WW")
(CA, GB, KD, Cecile Gervais Dufrene, individually and as Independent
Administratrix of the Succession of James Joseph Dufrene, also known as James
Joseph Dufrene, Sr., RS and WW are each referred to herein as a "Member" and
collectively as the "Members").

         Capitalized terms used but not defined herein shall have the respective
meanings set forth in the Appendix of Definitions attached hereto and made a
part hereof.

                                   WITNESSETH

         WHEREAS, the Members are the owners, beneficially and of record, of one
hundred percent (100%) of the issued and outstanding membership interests of
NSC;

         WHEREAS, NSC provides nitrogen pumping, nitrogen delivery and other
related services in the oil and gas pipeline, petrochemical and refining
industries (the "Business"); and

         WHEREAS, Buyer desires to acquire substantially all of the assets and
assume certain of the liabilities of NSC and NSC and the Members are desirous of
selling such assets to Buyer, all on the terms and subject to the conditions set
forth herein.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises, covenants and agreements hereinafter set forth, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                    AGREEMENT

         1.       Purchased Assets.
                  ----------------

                  1.1      Purchased Assets. On the terms and subject to the
conditions contained herein, NSC agrees to sell to Buyer (and the Members agree
to cause NSC to sell to Buyer) and Buyer agrees to purchase from NSC at the
Closing (as such term is defined in Section 3 hereof), free and clear of all
liens, claims and encumbrances (except as otherwise disclosed in and permitted
by this Agreement), all of NSC's rights, assets and properties wherever situated
and whether real, personal or mixed, tangible or intangible, in electronic form
or otherwise and whether or not having any value for accounting purposes or
carried or reflected on or specifically referred to in NSC's books or financial
statements, except for those assets and properties specifically excluded by
Section 1.2 hereof (the "Purchased Assets").

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                  The Purchased Assets shall include, but not be limited to, the
following:

                           1.1.1    Machinery and Equipment. All machinery and
                  equipment (including spare parts), components, computers
                  (including data processing hardware and software), vehicles,
                  fixtures, capital works in process, tools, formers, lasts,
                  patterns, dies, molds, furniture and similar tangible personal
                  property employed by NSC in the conduct of the Business as of
                  the Closing Date (the "Equipment"). However, the Equipment at
                  minimum shall include the equipment listed on Schedule 1.1.1
                  hereto, which is a listing of all of such Equipment as of
                  October 31, 2006.

                           1.1.2    Inventory. All inventories, consisting of
                  raw materials, work-in-process, finished goods and supplies
                  and units located at customer facilities, employed and useable
                  by NSC in the conduct of the Business as the same may exist at
                  the Closing.

                           1.1.3    Receivables. All of NSC's trade receivables,
                  note receivables and other accounts receivable, including
                  trade accounts receivable from equipment leased or sold and
                  services rendered, and the full benefit to all security for
                  such accounts or rights to payment as the same may exist at
                  the Closing (all of such receivables being hereinafter
                  sometimes referred to as the "Receivables").

                           1.1.4    Certain Cash, Cash Equivalents and
                  Investments. All of the petty cash, cash on deposit in banks
                  or other financial institutions, deposits in transit, prepaid
                  accounts and security deposits of NSC and other cash
                  equivalents, and funds in payroll accounts of NSC; and all
                  certificates of deposit, bonds, stock and other securities and
                  investments of NSC as the same may exist at the Closing.

                           1.1.5    Contract and Certain Other Rights of NSC.
                  All rights and interests of NSC in, to and under all contracts
                  between it and any other party or parties and under contracts
                  which have been acquired by it by assignment or in any other
                  manner, whether or not disclosed or required to be disclosed
                  in Schedule 4.14 hereof, and all other claims, rights and
                  causes of action of NSC against third parties.

                           1.1.6    Certain Proprietary Rights. All patents,
                  trademarks, tradenames, service marks, copyrights, and other
                  intellectual property or proprietary technology (and all
                  applications therefor) whether or not registered, data
                  processing software, licenses, technology, trade secrets,
                  know-how, customer lists, inventions, and the goodwill
                  associated therewith and other proprietary information and
                  rights employed or utilized in the conduct of the Business,
                  including specifically, but not by way of limitation, the
                  corporate and trade name "Nitrogen Specialty," and all
                  telephone numbers of NSC used in the conduct of its Business
                  (all of such properties being hereinafter referred to as the
                  "Proprietary Rights").

                           1.1.7    Leasehold Interests.  All leasehold
                  interests and leasehold improvements used by NSC in the
                  conduct of the Business;

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                           1.1.8    Other Assets. Except with respect to the
                  Excluded Assets, all other assets of NSC whether or not
                  employed in the conduct of the Business, whether real,
                  personal, or tangible, intangible or mixed and whether or not
                  reflected in the Financial Statements or on the books or
                  records of NSC, including all books, records and files
                  (excluding all personal files), rights under executory
                  contracts and purchase and sale orders to be assumed by Buyer
                  hereunder, deposits under all leases assumed by Buyer and any
                  prepaid expenses and permits and licenses.

                  If and to the extent that the Members or any of their
respective Affiliates have any interest in any of the Purchased Assets, then the
Members, for themselves and such Affiliates, do hereby sell, transfer and assign
all such interest to the Buyer for no additional consideration.

                  1.2      Excluded Assets. Notwithstanding anything to the
contrary contained herein, the assets set forth on Schedule 1.2 (the "Excluded
Assets") shall not be sold to Buyer and all of such Excluded Assets shall be
retained by NSC.

                  1.3      Names Following the Closing. Immediately following
the Closing, NSC shall amend its articles of organization so as to change its
name to a name which is not, in the judgment of Buyer, confusingly similar to
the name "Nitrogen Specialty Company", and neither NSC nor any of the Members
shall thereafter use such name or other names acquired by Buyer hereunder or
names confusingly similar thereto.

                  1.4      Documentation. In order to effectuate the sale,
conveyance, transfer and assignment contemplated by Section 1.1 hereof, NSC and
the Members shall execute and deliver on the Closing Date all such warranty
deeds, bills of sale and other documents or instruments of conveyance, transfer
or assignment as shall be reasonably necessary or appropriate to vest or confirm
in Buyer all right, title and interest of NSC in and to all of the Purchased
Assets, all of which documents shall be in form and substance satisfactory to
counsel for Buyer, acting reasonably.

                  1.5      Assumption of Liabilities. Subject to the conditions
described herein, at the Closing, the Buyer shall assume and agree to perform,
pay or discharge, when due, to the extent not theretofore performed, paid or
discharged, the following obligations of NSC existing on the Closing Date and
only such obligations (collectively, the "Assumed Liabilities"):

                  (a)      All of NSC's trade accounts payable and accrued
         liabilities, in each case that are included on Final Purchased Balance
         Sheet required to be reflected therein in accordance with US GAAP in
         the amounts shown thereon, to the extent that such obligations are not
         different in nature or materially different in amount from those
         incurred in the ordinary course in accordance with past practice;

                  (b)      All of NSC's orders to NSC's customers in the
         ordinary course of business outstanding as of the Closing Date
         reflected on NSC's books (other than any liability arising out of or
         relating to a breach or nonperformance thereof by NSC prior to the
         Closing Date);

                  (c)      All of NSC's checks outstanding on the Closing Date;

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                  (d)      All of NSC's liabilities expressly set forth in the
         terms of the Contracts assumed by Buyer (other than any liability under
         any such Contract, offer or solicitation arising out of or relating to
         a breach or nonperformance thereof by NSC prior to the Closing Date);

                  (e)      Unpaid bonuses and vacation time to the extent
         accrued and included on the Final Purchased Balance Sheet;

                  (f)      NSC's liabilities made in the ordinary course for
         product warranty arising from express warranties for products shipped
         or distributed by, or any services provided by NSC; in any event
         Buyer's financial liability for such express warranty claims shall not
         exceed $5,000 per claim and shall not include incidental and
         consequential damages, although Buyer agrees to perform any valid
         warranty work in accordance with Buyer's usual practices even if in
         excess of $5,000 per claim, subject to reimbursement by NSC to the
         extent of the amount in excess of $5,000 per claim; and

                  (g)      Any and all Liabilities included in the Final
         Purchased Balance Sheet in the amount shown thereon.

                  1.6      Retained Liabilities. Notwithstanding anything else
to the contrary in this Agreement, Buyer does not hereby and shall not assume or
in any way undertake to pay, perform, satisfy or discharge any liabilities of
NSC or the Members existing before, on or after the Closing Date or arising out
of any transactions entered into, or any state of facts existing, before, on or
after the Closing Date, and whether or not related to or arising out of any of
the Purchased Assets, except for the Assumed Liabilities (the "Retained
Liabilities"). Without limiting the foregoing, the term "Retained Liabilities"
shall include, except to the extent specifically listed on the Final Purchased
Balance Sheet, any and all of the following:

                  (a)      Liabilities, including accounts or notes payable, of
         NSC (i) to any Affiliate; (ii) for or in connection with any dividends,
         distributions, redemptions, or security rights with respect to any
         security of NSC; (iii) to indemnify NSC's officers, directors,
         employees or agents; (iv) for unpaid bonuses and vacation time to the
         extent not accrued on the Final Purchased Balance Sheet; or (v) arising
         out of any transaction affecting NSC or obligations incurred by NSC's
         officers, directors, employees or agents after the Closing;

                  (b)      Liabilities expressly identified elsewhere in this
         Agreement as being the responsibility of NSC or the Members;

                  (c)      Liabilities for any Taxes of NSC, whether or not by
         reason of, or in connection with, the transactions contemplated by this
         Agreement, including (i) any Taxes arising as a result of NSC's
         operation of its Business or ownership of the Purchased Assets prior to
         the Closing Date, (ii) any Taxes (other than Transfer Taxes to the
         extent such Transfer Taxes are the responsibility of Buyer pursuant to
         Section 10(a) of this Agreement) that will arise as a result of the
         sale of the Purchased Assets pursuant to this Agreement and (iii) any
         deferred Taxes of NSC of any kind;

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                  (d)      Liabilities attributable to the Excluded Assets,
         including liabilities (i) that are incurred outside the ordinary course
         of business or not consistent with past practice, or (ii) that are
         contingent in nature and not both clearly disclosed on the Schedules to
         this Agreement and specifically identified in Section 1.5;

                  (e)      Liabilities to, under or with respect to any NSC
         benefit plan (other than accrued vacation, personal days, sick leave,
         paid time off and similar matters reflected on the Final Purchased
         Balance Sheet) and the administration of any NSC benefit plan, or
         relating to payroll, workers' compensation liabilities, unemployment
         benefits, disability and occupational diseases of or with respect to
         employees or former employees of NSC, under any employment, severance,
         retention, change of control or termination agreements with any
         employee of NSC or any of its Affiliates, or arising out of or relating
         to any employee grievance whether or not the affected employees are
         hired by Buyer;

                  (f)      Liabilities under any written employment agreement;

                  (g)      Liabilities of NSC for or arising out of any
         indebtedness, including indebtedness referred to or disclosed on
         Schedule 4.14 and including any Contract giving rise to any
         indebtedness or any other Contract not expressly assumed by Buyer;

                  (h)      Liabilities relating to any pending or threatened
         legal proceedings that exist prior to the Closing Date, including those
         set forth on Schedule 4.17 and any legal proceedings that arise after
         the Closing Date that relate to transactions entered into, or any state
         of facts existing, prior to the Closing Date;

                  (i)      Liabilities, including penalties, fines, levies and
         assessments, arising out of any violation or breach of, or
         noncompliance with, any Contracts, Governmental Approvals or legal
         requirements by NSC or any other person acting as agent for or on
         behalf of NSC;

                  (j)      Liabilities of NSC arising out of or relating to (i)
         any violation of or noncompliance with any Environmental Law occurring
         prior to the Closing Date by NSC or any other person for whose conduct
         NSC is legally responsible, (ii) the ownership or operation of the
         facilities by NSC prior to the Closing Date, including the migration of
         any such condition after the Closing Date, (iii) the presence of any
         Contaminant at the facilities prior to the Closing Date as a result of
         NSC's actions or omissions, (iv) any hazardous activity conducted by
         NSC or any other person acting as agent for or on behalf of NSC, (v)
         any Release by NSC or any other person acting as agent for or on behalf
         of any of NSC on any other property, and (vi) any environmental
         remedial action required to be taken by NSC;

                  (k)      Liabilities for products liability for all products
         leased, sold, shipped, distributed, assembled or manufactured by, or
         any services provided by, NSC; and for all express warranties that
         exceed $5,000 per claim and implied warranties for all products
         shipped, distributed, or assembled by, or any services provided by,
         NSC;

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                  (l)      Losses arising from legal liabilities for negligent
         acts by NSC on or prior to the Closing Date;

                  (m)      Liabilities based on acts or omissions of NSC
         occurring after the Closing Date; and

                  (n)      Liabilities of any of the Members or their
         Affiliates.

         2.       The Purchase Price.
                  ------------------

                  2.1      Delivery and Review of Preliminary Closing Balance
Sheet and Preliminary Aged Accounts Report. No later than five (5) business days
prior to Closing, NSC shall deliver to Buyer (i) a balance sheet of NSC
estimated as of the Closing Date consisting of the estimated assets and
liabilities of NSC as of the Closing Date in accordance with US GAAP (but
excluding therefrom any Excluded Assets or Retained Liabilities that Buyer will
not be purchasing or assuming according to the terms of this Agreement), setting
forth an estimate of the amount by which the working capital of NSC as of the
Closing Date will exceed $2,200,000 (the "Preliminary Working Capital
Adjustment"), and (ii) a report of the aged accounts receivable of NSC estimated
as of the Closing Date, recorded and aged in categories of 30 days from invoice
date and setting forth a summary of the estimated face amount of the Aged
Accounts as of the Closing Date (the "Estimated Aged Accounts Amount"). NSC
shall endeavor to prepare such estimates in a reasonable manner using reasonable
assumptions so as to accurately reflect the expected results as of the Closing.
NSC shall review such estimates with Buyer prior to Closing in such detail as
Buyer may reasonably request, and NSC shall provide such supporting detail and
other cooperation as Buyer may reasonably request to support Buyer's review and
analysis of such estimates prior to Closing. Subject to mutual agreement, the
parties may update the estimates for changes occurring during the five (5)
business days preceding the Closing.

                  2.2      Purchase Price. The aggregate purchase price for the
Purchased Assets shall be the amount of Thirty Three Million Dollars
($33,000,000), subject to adjustment as set forth in Section 2.3 below (the
"Purchase Price"). Such Purchase Price shall be payable as follows and as set
forth in Section 2.3.

                  (a)      At Closing, Buyer shall deliver a sum equal to Thirty
         Three Million Dollars ($33,000,000) less the amounts to be escrowed
         under subsections (b) and (c) of this Section 2.2 below, to NSC in
         immediately available funds by wire transfer to the bank account
         designated in writing by NSC.

                  (b)      At Closing, Buyer shall deposit with the Escrow Agent
         the sum of Three Million Three Hundred Thousand Dollars ($3,300,000)
         (the "Indemnification Escrow Deposit") to be held by the Escrow Agent
         pursuant to Section 8.6 and the terms of the Escrow Agreement.

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                  (c)      At Closing, Buyer shall deposit with the Escrow
         Agent, a sum equal to the Estimated Aged Accounts Amount (the "Aged
         Accounts Escrow Deposit") to be held by the Escrow Agent pursuant to
         the terms of this Section 2.2(c) and the terms of the Escrow Agreement.
         During the Escrow Period, the Buyer shall use its commercially
         reasonable efforts in the ordinary course of business and consistent
         with Buyer's past practices to collect the Aged Accounts. NSC shall
         forward to Buyer on a weekly basis during the Escrow Period all
         payments that it receives on the Aged Accounts or any other accounts
         receivable of the Business, together with an accounting therefor.
         Within twenty-five (25) days after the end of each calendar quarter
         during the Escrow Period, Buyer shall deliver to NSC a report setting
         forth a summary of the Aged Accounts that were collected by Buyer
         during such preceding calendar quarter or portion thereof, and Buyer
         and NSC shall jointly direct Escrow Agent to pay such amount, together
         with interest earned thereon, to NSC from the Aged Accounts Escrow
         Deposit. Buyer shall apply all payments received from customers on and
         after the Closing Date to the respective customer's oldest accounts
         first, unless a debtor indicates the specific account or invoice it is
         paying in which event payment shall be applied to that account or
         invoice. Buyer and NSC agree that they will not willfully influence
         account specification pursuant to the preceding sentence (although
         Buyer may contact an account debtor to inquire or confirm whether a
         particular payment is intended for a particular invoice if not
         otherwise indicated from the payment). Buyer and NSC shall cooperate
         with each other in communicating and making sure that payments on the
         accounts receivable of the Business are allocated to the correct
         invoice and any payments thereon received by NSC are forwarded to
         Buyer. Buyer's management, including CA, shall have authority to
         settle, compromise and collect the Aged Accounts in such manner as they
         determine during the Escrow Period utilizing commercially reasonable
         standards. Within twenty-five (25) days after the end of the Escrow
         Period, Buyer shall deliver to NSC a final summary of the Aged Accounts
         that were collected or settled by Buyer during the Escrow Period (the
         "Aged Accounts Report"). Upon receipt of the Aged Accounts Report, NSC
         shall have a period of up to thirty (30) days to review the Aged
         Accounts Report. If NSC approves the Aged Accounts Report or does not
         notify Buyer in writing during such thirty (30) day period that it
         disputes the Aged Accounts Report, the Aged Accounts Report shall
         become the Final Aged Accounts Report. If NSC notifies Buyer in writing
         within such thirty (30) day period that it disputes the Aged Account
         Report, indicating the items it disputes, the disputed items shall be
         resolved by the Arbitrator in accordance with the procedures set forth
         in Section 2.3.4, and upon resolution, the Aged Accounts Report, as
         modified, if at all, by arbitration, shall become the Final Aged
         Accounts Report. Any Aged Accounts that remain outstanding as of the
         end of the Escrow Period, as shown on the Final Aged Accounts Report,
         are referred to herein as the "Uncollected Aged Accounts." Within five
         (5) business days of the determination of the Final Aged Accounts
         Report, NSC and Buyer shall direct the Escrow Agent to pay out of the
         Escrow Deposit (i) an amount equal to the face amount of the
         Uncollected Aged Accounts (plus interest accrued thereon) to Buyer, and
         (ii) an amount equal to the remaining amount of the Aged Accounts
         Escrow Deposit (plus interest accrued thereon) to NSC. Upon such
         payments, Buyer shall assign to NSC, without recourse or warranty, the
         Uncollected Aged Accounts, if any. Notwithstanding anything to the
         contrary in this Agreement, neither NSC or its Members or any of their
         respective affiliates shall take any action or file any lawsuits to
         collect or enforce any of the Uncollected Aged Accounts, nor shall NSC
         sell or transfer any of the Uncollected Aged Accounts, except as
         otherwise expressly permitted by Section 12(e) hereof. Buyer shall
         promptly remit to NSC any amounts subsequently received by Buyer with
         respect to the Uncollected Aged Accounts assigned to NSC hereunder. The
         parties agree that in no event will Buyer or NSC be entitled to receive
         any portion of the Aged Accounts Receivable Amount under this Agreement
         except as specifically set forth in this Section 2.2(c).

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                  2.3      Adjustment of Purchase Price. The Purchase Price
shall be subject to adjustment for the amount by which the Closing Working
Capital Amount reflected in the Final Closing Statements exceeds (or is less
than) Two Million Two Hundred Thousand Dollars ($2,200,000), such adjustment to
be payable as and determined in the manner described below.

                           2.3.1    Payment of Preliminary Working Capital
                  Adjustment at Closing. At Closing, in addition to the payments
                  set forth in Section 2.2, Buyer shall deliver to NSC a sum
                  equal to the Preliminary Working Capital Adjustment in
                  immediately available funds by wire transfer to the bank
                  account designated in writing by NSC.

                           2.3.2    Initial Closing Statements. As soon as
                  reasonably practicable after the Closing Date and in any event
                  no later than sixty (60) days after the Closing Date, NSC will
                  prepare and present to Buyer the Initial Closing Statements,
                  which shall consist of the following statements reflecting the
                  respective values as at 11:59 P.M. on the day preceding the
                  Closing:

                           (i)      a balance sheet of NSC consisting of the
                  assets and liabilities of NSC, prepared in accordance with US
                  GAAP, except that all known adjustments will be made without
                  regard to materiality (the "Initial Closing Balance Sheet");

                           (ii)     a schedule adjusting the Initial Closing
                  Balance Sheet for any Excluded Assets or Retained Liabilities
                  recorded therein which Buyer is not purchasing or assuming
                  according to the terms of this Agreement (the "Purchased
                  Balance Sheet");

                           (iii)    a report of accounts receivable included in
                  the Purchased Balance Sheet that shows, by invoice by
                  customer, the amount of receivables recorded and aged in
                  categories of 30 day increments from invoice date (the
                  "Closing Aged Receivables Report"), and setting forth therein
                  a listing of the Aged Accounts and a summary of the Aged
                  Accounts Amount; and

                           (iv)     a calculation of the amount of closing
                  working capital (the "Closing Working Capital Amount"), which
                  shall be the current assets less current liabilities as
                  defined in accordance with US GAAP contained in the Purchased
                  Balance Sheet less Two Million Two Hundred Thousand Dollars
                  ($2,200,000).

                           2.3.3    Final Closing Statements. Upon receipt of
                  the Initial Closing Statements, Buyer and its independent
                  accountants ("Buyer's Accountants") shall be permitted during
                  the succeeding sixty (60) day period to examine the books and
                  records of NSC and the work papers prepared by NSC or NSC's
                  accountants. If Buyer agrees to the Initial Closing
                  Statements, they shall become the Final Closing Statements. If
                  Buyer does not agree to the Initial Closing Statements it
                  shall within sixty (60) calendar days after delivery of the
                  Initial Closing Statements by NSC, prepare and deliver to NSC
                  a list of disputed adjustments (the "Disputed Adjustments")
                  Buyer believes should have been recorded on the Initial
                  Closing Statements. Buyer and NSC shall use their commercially
                  reasonable best efforts to resolve the Disputed Adjustments.
                  If Buyer and NSC are able to reach an agreement on the
                  Disputed Adjustments, the Initial Closing Statements shall be
                  amended to reflect such agreement and shall become the Final
                  Closing Statements.

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                           If Buyer and NSC are unable to reach an agreement on
                  the Disputed Adjustments within thirty (30) calendar days
                  after receipt by NSC of the Disputed Adjustments, then the
                  matter will be resolved by the Arbitrator in accordance with
                  the provisions of Section 2.3.4 below.

                           The Final Closing Statements shall be deemed to be
                  and shall be conclusive and binding on the parties to this
                  Agreement for purposes of determining any adjustment of the
                  Purchase Price pursuant to this Section 2.3.

                           2.3.4    Disputes. For purposes of this dispute
                  resolution provision, NSC and the Members hereby appoint CA as
                  the "NSC Representative" and authorize him to act on its and
                  their behalf. NSC shall have thirty (30) days after receipt of
                  the Disputed Adjustments to dispute any calculations or
                  amounts reflected therein. If the NSC Representative does not
                  give Buyer written notice of such a dispute, specifying the
                  grounds therefor, within such thirty (30) day period, the
                  Disputed Adjustments shall be deemed to have been accepted by
                  NSC and the Members in the form in which it was delivered by
                  Buyer. In the event that the NSC Representative gives such
                  written notice to Buyer within such thirty (30) day period,
                  the NSC Representative and Buyer shall, within twenty (20)
                  days after the giving thereof, attempt to resolve the dispute
                  and agree in writing upon the final content of the Disputed
                  Adjustments. In the event that the NSC Representative and
                  Buyer are unable to resolve any such dispute within such
                  twenty (20) day period, then a nationally recognized
                  accounting firm mutually acceptable to the NSC Representative
                  and Buyer shall be employed as arbitrator (the "Arbitrator")
                  hereunder to settle such dispute as soon as practicable. The
                  Arbitrator shall have access to all documents and facilities
                  necessary to perform its function as arbitrator. The
                  Arbitrator's determination with respect to any such dispute
                  shall be final and binding upon the parties hereto. NSC and
                  Buyer shall each pay one half (1/2) of the fees and expenses
                  of the Arbitrator for such services.

                           2.3.5    Payment of Adjustment to Closing Working
                  Capital Amount. Within ten (10) calendar days after the Final
                  Closing Statements are determined and become final, either (i)
                  if the Preliminary Working Capital Adjustment is greater than
                  the Closing Working Capital Amount reflected in the Final
                  Closing Statements, NSC shall be responsible to pay Buyer in
                  immediately available funds the amount of such difference, or
                  (ii) if the Preliminary Working Capital Adjustment is less
                  than the Closing Working Capital Amount reflected in the Final
                  Closing Statements, Buyer shall pay to NSC in immediately
                  available funds the amount of such difference. If monies are
                  owing from NSC to Buyer under this subsection 2.3.5, then such
                  amounts, together with interest earned thereon, shall be paid
                  to Buyer from the Indemnification Escrow Deposit in accordance
                  with the terms of the Escrow Agreement; provided, however, in
                  the event and to the extent that such amounts are not paid to
                  Buyer from the Indemnification Escrow Deposit for any reason
                  within ten (10) days of when due and owing, NSC shall pay such
                  amounts to Buyer upon written demand therefor.

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         3.       Closing.
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                  3.1      Time. The consummation of the transactions
contemplated by this Agreement (the "Closing") shall take place at 10:00 A.M.
Chicago time on the date hereof (the "Closing Date"). On the Closing Date, NSC
shall sell, transfer, assign, convey and deliver to Buyer the Purchased Assets,
Buyer shall pay the Purchase Price as described in Section 2 and the parties
shall deliver the agreements, certificates and other documents required to be
delivered pursuant to the terms of this Agreement. Upon the occurrence of the
Closing, the Purchased Assets and the Assumed Liabilities shall be deemed to
have been transferred effective as of 12:01 A.M. on the Closing Date.

                  3.2      Further Assurances. If at any time after the Closing
Date, Buyer shall consider or be advised that any further deeds, assignments or
other instruments, documents or assurances or any other acts are reasonably
necessary, desirable or proper to (a) vest, perfect or confirm, of record or
otherwise, in Buyer, the title to the Purchased Assets, or (b) otherwise carry
out the purposes of this Agreement, NSC and the Members agree to execute and
deliver all such deeds, assignments, instruments, documents, make such
assurances and do all acts reasonably necessary, desirable or proper to vest,
perfect and confirm title to such Purchased Assets in Buyer, and otherwise to
carry out the purposes of this Agreement. Without limiting the foregoing, the
parties agree that NSC's bank accounts shall be transferred to Buyer at Closing,
and that the parties shall take such actions with the applicable depository
banks as are necessary or desirable to effectuate or evidence such transfer at
or reasonably promptly after the Closing.

         4.       Representations and Warranties of NSC.  NSC represents and
                  -------------------------------------
warrants to Buyer as follows:

                  4.1      Status; Authority, Binding Agreement. NSC has all
requisite power and authority, corporate or otherwise, to enter into this
Agreement and to carry out its obligations hereunder. This Agreement has been
duly executed and delivered by NSC and this Agreement constitutes, and all other
agreements, documents and instruments to be executed and delivered by NSC
pursuant hereto will constitute, the legal, valid and binding obligations of
NSC, enforceable against NSC in accordance with their terms (subject, as to the
enforcement of remedies, to general principles of equity and to bankruptcy,
insolvency and similar laws affecting creditors' rights generally).

                  4.2      [Intentionally Omitted].

                  4.3      Capitalization. Schedule 4.3 to this Agreement sets
forth the name and address of the Members and their interest in NSC. There are
no outstanding options, warrants or other rights or agreements to purchase or
subscribe to become a member or own any interest in NSC. All of the currently
issued and outstanding membership interests of NSC have been duly authorized and
are validly issued, fully paid and nonassessable and have not been issued in
violation of any applicable law, NSC's Articles of Organization and Operating
Agreement or the terms of any other agreement to which the Members or NSC are
bound. The interests represent one hundred percent (100%) of the fully diluted
membership interest of NSC.

                                       10
<PAGE>

                  4.4      Organization, Power and Qualification. NSC is a
limited liability company duly organized, validly existing and in good standing
under the laws of the State of Louisiana, and has all requisite corporate power
and authority to own or hold under lease its properties and assets and to carry
on its business as now conducted. NSC is duly qualified to do business and is in
good standing as a foreign limited liability company in the jurisdictions listed
on Schedule 4.4. NSC is duly qualified to do business and is in good standing as
a foreign corporation in all of the jurisdictions in which the failure to be so
qualified would have a material adverse affect on the ability of NSC to carry
out its business as now being conducted.

                  4.5      No Violation. Except as set forth on Schedule 4.5
hereto, neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby will constitute a violation
of, or be in conflict with, or result in a cancellation of, or constitute a
default under, or create (or cause the acceleration of the maturity of) any
debt, obligation or liability affecting, or result in the creation or imposition
of any security interest, lien, or other encumbrance upon any of NSC's assets
under: (a) any term or provision of the certificate of organization or operating
agreement (or other organic document) of NSC; (b) any judgment, decree, order,
regulation or rule of any court or governmental authority; (c) any statute, law
or regulation; (d) any contract, agreement, indenture, lease or other commitment
to which either NSC or any of the Members are a party or by which they or the
Purchased Assets are bound; or (e) cause any change in the rights or obligations
of any party under any such contract, agreement, indenture, lease or commitment.

                  4.6      Consents. Except as set forth on Schedule 4.6 hereto,
no consent of, or notice to, any federal, state or local authority, or any
private person or entity, is required to be obtained or given by NSC or the
Members in connection with the execution, delivery or performance of this
Agreement or any other agreement or document to be executed, delivered or
performed hereunder by NSC or the Members or to enable Buyer to continue to
conduct the Business after the Closing in the manner in which it is currently
conducted.

                  4.7      Investments. NSC does not own, directly or
indirectly, any stocks, bonds or securities or any equity or other proprietary
interest in any corporation, partnership, joint venture, business enterprise or
other entity of any nature whatsoever.

                  4.8      Financial Statements. Schedule 4.8 hereto contains
true and correct copies of the following financial statements (the "Financial
Statements"): (a) the balance sheets of NSC as of August 31, 2006 and December
31, 2005; and (b) the income statements of NSC for the eight (8) month period
ended August 31, 2006 and for the twelve (12) month period ended December 31,
2005. As disclosed in Schedule 4.8, each of the balance sheets included in the
Financial Statements fairly present the assets, liabilities and financial
condition of NSC as at the dates thereof in all material respects, and such
statements of operations included in the Financial Statements fairly present the
results of operations for the periods therein referred to, all in accordance
with the accounting policies used by NSC, consistently applied. Generally, NSC
recognized revenue upon the completion of its services and recognized expenses
as they were incurred. NSC has not used estimates to determine assets,
liabilities, contingencies, revenues and expenses. Property and equipment are
carried at cost and NSC depreciates property and equipment using tax
depreciation methods and depreciable lives of 5 to 7 years. Maintenance and
repairs are charged to expense as incurred and expenditures for major
improvements are capitalized.

                                       11
<PAGE>

                  4.9      Undisclosed Liabilities. Except as set forth on
Schedule 4.9, NSC does not have any indebtedness, liabilities or obligations
(direct or indirect, contingent or absolute, matured or immatured) of any nature
whatsoever, whether arising out of contract, tort, statute or otherwise which
are not reflected, reserved against or given effect to in the Financial
Statements, except liabilities and obligations incurred in the ordinary course
of business since the date of the Financial Statements which are the same nature
as those set forth on the Financial Statements, and there is no basis for
assertion against NSC of any liabilities or obligations not adequately
reflected, reserved against or given effect to in the Financial Statements. The
parties agree that to the extent that another representation or warranty given
by NSC in this Section 4 relates more specifically to a particular type of
liability or obligation, that such other representation or warranty shall
supersede the more general representation and warranty of this Section 4.9 with
respect thereto.

                  4.10     Absence of Certain Changes. Except as disclosed in
Schedule 4.10, since December 31, 2005, there has not been: (a) any adverse
change in the condition (financial or otherwise) of the properties, assets,
liabilities, results of operation or prospects of NSC's business; (b) any
damage, destruction or loss (whether or not covered by insurance) affecting the
properties, assets, liabilities, financial condition, results of operations or
prospects of the Business; (c) any direct or indirect redemption, retirement,
purchase or other acquisition of any interest of NSC; (d) any increase in the
compensation, commissions or perquisites payable or to become payable by NSC to
any director, officer, employee, or agent thereof, or any payment of any bonus,
profit sharing or other extraordinary compensation to any NSC employee (other
than any such increase or payment paid or to become payable in the ordinary
course of business consistent with past practices); (e) any change in any of the
accounting methods or practices followed by NSC or any change in depreciation or
amortization policies or rates theretofore adopted; (f) any cancellation of any
debts owed to or claims held by or on behalf of NSC; (g) any actual or
threatened termination of any business relationships or material agreements
between NSC and any of its customers and suppliers; (h) any incurrence of any
obligation or liability (absolute or contingent) for indebtedness; (i) any
acceleration or other prepayment of indebtedness, or (j) any sale, lease,
abandonment or other disposition of any real property, or, other than in the
ordinary course of business, of any machinery, equipment or other properties, or
any intangible assets utilized in the Business.

                  4.11     Taxes. NSC has filed on a timely basis all Tax
returns that are or were required to be filed by it under applicable Law. All
such Tax returns were correct and complete in all respects and have been
prepared in accordance with applicable legal requirements. NSC has paid all
Taxes that have or may have become due for all periods covered by the Tax
returns or otherwise, or pursuant to any assessment received by NSC. NSC has
withheld and paid all Taxes required under applicable Law to have been withheld
and paid in connection with any amounts paid, owing, or applicable to any
employee, independent contractor, creditor, member or other person, and all
Internal Revenue Service Forms W-2 and 1099 required with respect thereto have
been properly and timely filed. NSC has not received any written notice from a
taxing authority of a jurisdiction where NSC does not file Tax returns claiming
that it is or may be subject to taxation by that jurisdiction. There are no
liens for Taxes on any of the Purchased Assets that arose in connection with any
failure (or alleged failure) to pay any Tax, and, there is no basis for
assertion of any claims attributable to Taxes which, if adversely determined,
would result in any such liens. There is no pending, or to NSC's and the
Members' knowledge, threatened or anticipated assessment of any additional Tax
against NSC for any taxable period for which Tax returns have been filed which
may cause the Purchased Assets to be subject to an encumbrance.

                                       12
<PAGE>

                  4.12     Title to and Condition of Assets. NSC is the owner
of and has good title to all of the Purchased Assets, including those assets and
properties reflected in the Financial Statements (other than those properties
and assets disposed of since August 31, 2006, in the ordinary course of
business), and to all properties and assets acquired by NSC after such date,
free and clear of all mortgages, liens, pledges, charges, security interests,
encumbrances or other third party interests of any nature whatsoever. To the
Knowledge of NSC, the Purchased Assets are in reasonable operating condition and
repair, ordinary wear and tear excepted.

                  The Purchased Assets constitute all of the rights, properties
and assets, tangible and intangible, real, personal and mixed, in electronic
form or otherwise, utilized by NSC in the conduct of its Business. None of the
Purchased Assets are owned or controlled by any of the Members or their
Affiliates.

                  4.13     Real Estate and Leases. NSC does not own any real
property. There is disclosed in Schedule 4.13 a description of all real estate
(including buildings and improvements) leased by NSC or any of the Members and
used in the Business according to the character of the property and the location
thereof. There is disclosed in Schedule 4.13 a brief description (including in
each case the annual rental payable, the expiration date, a brief description of
the property covered and the name of the lessor) of every lease or agreement
(written or oral) under which NSC is lessee of, or holds or operates, any real
property. Each of such leases and agreements is in full force and effect and
constitutes a legal, valid and binding obligation of NSC and, to the Knowledge
of NSC, the other respective parties thereto. Neither NSC, nor to the Knowledge
of NSC, any other party thereto is in default in any respect under any such
lease or agreement nor has any event occurred which with the passage of time or
giving of notice or both would constitute such a default. To the Knowledge of
NSC, the real property and the buildings thereon utilized by NSC in the conduct
of the Business do not violate any building, zoning or other laws or ordinances,
or any agreements, applicable thereto, and no notice of any such violation or
claimed violation has been received by NSC or any of the Members.

                  Except as set forth on Schedule 4.13, NSC's right, title and
interest in and to each of the real property leases shall continue after the
completion of the transactions contemplated by this Agreement, without the
consent, waiver or approval of any party and such transactions will not give any
party thereto the right to terminate the lease.

                                       13
<PAGE>

                  4.14     Contracts. Except as set forth in Schedule 4.14, NSC
is not a party to, or bound by, any oral or written contracts, agreements,
commitments or understandings ("Contracts"): (a) for the employment of any
officer or employee; (b) for the purchase or sale of membership interests of
NSC; (c) for any indebtedness; (d) for leasing personal property (including,
without limitation, leases for machinery and office equipment, furniture,
fixtures, vehicles, tools and dies); (e) involving the payment of money or other
property in connection with machinery and equipment or inventory in excess of
Five Thousand Dollars ($5,000) per contract or in connection with any other
contract in excess of Five Thousand Dollars ($5,000) per contract by NSC or the
term of which at any time exceeded one year (including, without limitation,
vendor supply contracts or customer "blanket" purchase orders); (f) providing
for the services of dealers, distributors, sales representatives or similar
representatives; (g) relating to the ownership, use or licensing of any patents,
trademarks, trade names, brand names, copyrights, inventions, processes,
know-how, formulae, trade secrets or other proprietary rights; (h) relating to
oral or written and currently effective warranties or representations expressly
or impliedly made by NSC, in respect of any products manufactured or sold or
services provided by NSC, and any other liability or obligation of NSC to
service, repair, maintain, take back or otherwise do or not do anything in
respect to any products, inventory or services that has been delivered by NSC
outside the normal course of business or inconsistent with past practices; (i)
any covenants by or binding NSC not to compete or to abide by any
confidentiality agreement; (j) any other contract that is material to the
Business; or (k) for any transaction between NSC and the Members or their
Affiliates.

                  All of the Contracts constitute legal, valid and binding
obligations of NSC and, to the Knowledge of NSC, the other respective parties
thereto, are in full force and effect, and neither NSC nor, to the Knowledge of
NSC, any other party thereto has violated any provision of, or committed or
failed to perform any act which with notice, lapse of time or both would
constitute a default under the provisions of any Contract. Correct and complete
copies or descriptions of all Contracts disclosed on Schedule 4.14 have been
made available to Buyer.

                  4.15     Receivables. All of the accounts receivable shown on
the Financial Statements, and any such receivables which arose since the
respective dates thereof ("Receivables"), arose from transactions made in the
ordinary course of business, represent legal and valid obligations to NSC and,
are not subject to any set-off or counterclaim, except for adjustments
reflecting returns and allowances in the ordinary course of business. All of the
Receivables are enforceable and are current and collectible in the ordinary
course of business, net of reserves for doubtful accounts, and in accordance
with their terms. Except as set forth on Schedule 4.15, no customer has notified
NSC that such customer disputes or has a claim against any of the Receivables.

                  4.16     Inventory. Except as reserved in the Financial
Statements, all inventory of the rental and sale products included in the
Purchased Assets are in usable condition. All rental products are labeled to
identify NSC as the owner of the units. Except as reserved in the Financial
Statements, none of NSC's inventory is obsolete, has been consigned to others or
is on consignment from or is owned by others.

                                       14
<PAGE>

                  4.17     No Default, Violation or Litigation. NSC is not in
violation of any law, regulation or order of any court or federal, state,
municipal or other governmental department, commission, board, bureau, agency or
instrumentality (including, without limitation, laws, regulations, orders,
restrictions and compliance schedules applicable to environmental standards and
controls, wages and hours, civil rights and occupational health and safety) and
NSC has not received any notice of claimed noncompliance. Except as disclosed in
Schedule 4.17, (i) there are no lawsuits, proceedings, claims or governmental
investigations pending or, to the Knowledge of NSC, threatened against or
involving NSC or against or involving any of NSC's assets, or against or
involving any officers or directors of NSC; and (ii) there are no judgments,
consents, decrees, injunctions, or any other judicial or administrative mandates
outstanding against NSC or the Members.

                  4.18     Insurance. Schedule 4.18 contains a list of all
insurance policies (specifying (a) the insurer, (b) the amount of the coverage,
(c) the type of insurance, (d) the policy number and (e) any currently pending
claims thereunder or any claims asserted thereunder or under similar policies
maintained by or on behalf of NSC, its properties, assets, business or
personnel. All such policies are (and pending Closing will continue to be) in
full force and effect, and NSC is not in default with respect to any provision
contained in any insurance policies. NSC has not failed to give any notice or
present any claim thereunder in due and timely fashion, which could adversely
affect the coverage under such policy or be grounds for termination of such
policy.

                  To the Knowledge of NSC, all such insurance is in amounts and
against such risks as are usual and customary and reasonably adequate to protect
NSC's Business and assets. At no time has NSC been denied any insurance or
indemnity bond coverage which it has requested, or received any written notice
from or on behalf of any insurance carrier presently providing insurance
relating to it (i) that insurance rates may or will be substantially increased,
(ii) that there will be no renewal of policies presently in effect, or (iii)
that material alterations to any of the properties or business operations of NSC
are necessary or required by such carrier.

                  4.19     Employment, Labor and Other Relations. Schedule 4.19
sets forth the name, job classification, total annual compensation (base salary,
bonus and other benefits) and whether any employee is on leave (and if so, what
type of leave the employee is on) of each of NSC's officers, employees, sales
representatives and consultants as of the Closing Date.

                  Except as disclosed in Schedule 4.19, NSC is not a party to or
is otherwise bound by any contract, agreement or collective bargaining agreement
with any labor union or organization or other commitment respecting employment
or compensation of any of its officers, directors, agents, consultants or
employees, and no employees of NSC are represented by any labor union or similar
organization. To the Knowledge of NSC, there is no existing or threatened labor
disturbance by NSC's employees or of any of NSC's principal suppliers,
contractors or customers.

                  Except as set forth in Schedule 4.19, there are no charges or
complaints involving any federal, state or local civil rights enforcement agency
or court; complaints or citations under the Occupational Safety and Health Act
or any state or local occupational safety act or regulation; unfair labor
practice charges or complaints with the National Labor Relations Board; or other
claims, charges, actions or controversies pending, or, to the best Knowledge of
NSC, threatened or proposed, involving NSC and any employee, former employee or
any labor union or other organization representing or claiming to represent such
employees' interests.

                                       15
<PAGE>

                  NSC is and has heretofore been in compliance with all laws,
rules and regulations respecting employment and employment practices, terms and
conditions of employment and wages and hours, the sponsorship, maintenance,
administration and operation of (or the participation of its employees in)
employee benefit plans and arrangements and occupational safety and health
programs, and NSC is not engaged in any violation of any law, rule or regulation
related to employment, including unfair labor practices or acts of employment
discrimination.

                  NSC has not had a plant closing or mass lay-off (as those
terms are defined in the Worker Adjustment and Retraining Notification Act of
1988) affecting in whole or in part any facility, operating unit or employee of
NSC.

                  4.20     Employee Benefits.

                  (a)      Benefit Plans. Schedule 4.20 discloses all written
         and unwritten Benefit Plans, whether or not funded and whether or not
         terminated, (i) maintained or sponsored by NSC, (ii) with respect to
         which NSC has or may have liability or is obligated to contribute,
         (iii) that otherwise cover any of the current or former employees of
         NSC or their beneficiaries, or (iv) as to which any current or former
         employees of NSC or their beneficiaries participated or were entitled
         to participate or accrue or have accrued any rights, other than a
         Multiemployer Plan (each, a "NSC Benefit Plan").

                  (b)      NSC Group Matters; Funding. Neither NSC, nor any
         corporation or other trade or business that may be aggregated with NSC
         under Sections 414(b), (c), (m) or (o) of the Internal Revenue Code
         (the "NSC Group"), has any obligation to contribute to, or any direct
         or indirect Liability with respect to, any Benefit Plan of the type
         described in Sections 4063 and 4064 of ERISA or Section 414(c) of the
         Internal Revenue Code (the "IRC"). NSC does not have, and, after the
         Closing, Buyer will not have, any liability with respect to any Benefit
         Plan of any other member of the NSC Group that is not a NSC Benefit
         Plan, whether as a result of delinquent contributions, distress
         terminations, fraudulent transfers, failure to pay premiums to the
         Pension Benefit Guaranty Corporation (the "PBGC"), withdrawal liability
         or otherwise.

                  (c)     Compliance. All NSC Benefit Plans and all related
         trusts, insurance contracts and funds have been created, maintained,
         funded and administered in compliance with all applicable Law and in
         compliance with the underlying or applicable plan document, trust
         agreement, insurance policy or other writing. No NSC Benefit Plan is,
         to the Knowledge of NSC, under audit or investigation. No completed
         audit of any NSC Benefit Plan has resulted in the imposition of any
         Tax, fine or penalty. There are no actions or proceedings (other than
         routine claims for benefits) pending, or to the Knowledge of NSC,
         threatened or anticipated with respect to NSC Benefit Plans.

                                       16
<PAGE>

                  (d)      Qualified Plans. Schedule 4.20 separately discloses
         each NSC Benefit Plan that purports or is intended to be a qualified
         plan under Section 401(a) of the IRC and exempt from United States
         federal income Tax under Section 501(a) of the IRC (a "Qualified
         Plan"). A determination letter (or opinion or notification letter, if
         applicable) has been received from the IRS that each Qualified Plan is
         qualified under Section 401(a) of the IRC and the trust funding such
         Qualified Plan is exempt from federal income Tax under Section 501(a)
         of the IRC. No Qualified Plan has been amended since the date of the
         most recent IRS letter. No member of the NSC Group, fiduciary of any
         Qualified Plan, or agent of any of the foregoing, has done or failed to
         do anything that would adversely affect the qualified status of a
         Qualified Plan or the qualified status of any related trust.

                  (e)      Defined Benefit Plans. Schedule 4.20 separately
         discloses each NSC Benefit Plan that is a defined benefit plan as
         defined in Section 3(35) of ERISA (a "Defined Benefit Plan"). The
         present value of vested and nonvested accrued benefits under each
         Defined Benefit Plan does not exceed the present fair market value of
         the assets of such plan, based on the actuarial assumptions and
         methodology used for funding purposes (i) as set forth in such plan's
         most recent actuarial report; (ii) as required by the PBGC on a
         termination basis; and (iii) as set forth in FASB 87. No reportable
         event under Section 4043 of ERISA has occurred with respect to any
         Defined Benefit Plan. No event has occurred and no condition has
         existed that could constitute grounds under Section 4042 of ERISA for
         termination of or appointment of a trustee to administer any Defined
         Benefit Plan. No accumulated funding deficiency (as defined in Section
         402 of ERISA or Section 412 of the IRC) exists nor has any funding
         waiver from the IRS been received or requested with respect to any
         Defined Benefit Plan. No excise or other Tax is due or owing because of
         any failure to comply with the minimum funding standards of the IRC or
         ERISA with respect to any Defined Benefit Plan.

                  (f)      Multiemployer Plans. No NSC Benefit Plan is a
         multiemployer plan within the meaning of Section 3(37) or Section
         4001(a)(4) of ERISA (a "Multiemployer Plan"). No member of the NSC
         Group has withdrawn from any Multiemployer Plan or incurred any
         withdrawal liability to or under any Multiemployer Plan. No NSC Benefit
         Plan covers any employees of any member of the NSC Group in any foreign
         country or territory.

                  (g)      Prohibited Transactions; Fiduciary Duties;
         Post-Retirement Benefits. No prohibited transaction (within the meaning
         of Section 406 of ERISA and Section 4975 of the IRC) with respect to
         any NSC Benefit Plan exists or has occurred that could subject NSC to
         any liability or Tax under Part 5 of Title I of ERISA or Section 4975
         of the IRC. No member of the NSC Group, nor any administrator or
         fiduciary of any NSC Benefit Plan, nor any agent of any of the
         foregoing, has engaged in any transaction or acted or failed to act in
         a manner that will subject NSC to any liability for a breach of
         fiduciary or other duty under ERISA or any other applicable Law. With
         the exception of the requirements of Section 4980B of the IRC, no
         post-retirement benefits are provided under any NSC Benefit Plan that
         is a welfare benefit plan as described in Section 3(1) of ERISA.

                                       17
<PAGE>

                  (h)      Other Matters. NSC has no liability arising out of or
         attaching as a result of NSC being a member of a controlled group or
         affiliated group or combined group of corporations of which NSC, its
         Affiliates or any other person are or were a part on or prior to the
         Closing Date, including those liabilities imposed by Chapter 6 of
         Subtitle A of the IRC (Consolidated Returns), ERISA Section 4201(a)
         (Multiemployer Withdrawal Liability), ERISA Section 4062(a) (Single
         Employer Termination Liability), IRC Section 412(c)(11) and ERISA
         Section 302(c)(11) (Funding Liability), ERISA Section 4971(e) (Funding
         Excise Taxes) and ERISA Section 4007(e) (PBGC Premiums).

                  4.21     Intellectual Property. Schedule 4.21 discloses all
registered trademarks and service marks and pending applications therefor,
registered copyrights and pending applications therefor, and patents and pending
applications therefor owned by NSC. Schedule 4.14 discloses all written
Contracts pursuant to which NSC is granted the license to use and transfer any
patents, trademarks, service marks, and software and other copyrighted materials
used by NSC in the conduct of the Business. Schedule 4.21 also discloses all
domain names owned by NSC. NSC has the entire right, title and interest in and
to, or has the right to use and transfer in accordance with the licenses
identified on Schedule 4.14 or not required to be identified therein, the
intellectual property rights disclosed in Schedule 4.21 (all of the foregoing,
collectively, "Intellectual Property"). To the best of NSC's Knowledge, no
person has infringed upon, or is infringing upon, nor has any person
misappropriated, any Intellectual Property.

                  All of the registered trademarks, registered copyrights and
patents identified on Schedule 4.21 as owned by NSC and not abandoned have had
all filing and maintenance fees due to date paid all post-registration filings
of affidavits of use and renewal applications made in a timely manner or within
the applicable grace periods. NSC has taken necessary precautions to protect the
secrecy, confidentiality, and value of any and all trade secrets of the
Business. Except as disclosed in Schedule 4.21, NSC does not own and is not
licensed to use any patents, trademarks, trade names, service marks, copyrights,
mask works or other such intellectual property rights. Neither NSC nor, to the
Knowledge of NSC, any of its officers or employees has any patents issued or
patent applications pending for any device, process, method, design or invention
of any kind now used or needed by NSC in the furtherance of the Business
operations as currently being conducted or as currently proposed to be conducted
by NSC, which patents or applications have not been assigned to NSC with such
assignment duly recorded in the United States Patent Office or with the
applicable foreign Government Entity. The operation of the Business, as
presently being conducted, does not infringe on any intellectual property rights
of any third party.

                  4.22     Approvals. NSC possesses or has applied for all
governmental and other permits, licenses, consents, certificates, orders,
authorizations and approvals (the "Approvals") required to be obtained by NSC,
to own or hold under lease and operate its properties and assets and to carry on
the Business as now conducted. NSC has not received any notice of proceedings
relating to the revocation or modification of any such Approvals. The Approvals
are identified in Schedule 4.22. NSC is operating in compliance with the
provisions, terms and conditions of the Approvals.

                  4.23     Compliance with Laws. The Business has been and
continues to be conducted in accordance in all material respects with all Laws
and Governmental Orders applicable to the Business, and NSC is not in violation
in any material respect of any such Law or Governmental Order.

                                       18
<PAGE>

                  4.24     Environmental Matters.

                  (a)      Governmental Authorizations.  Schedule 4.24(a)
         identifies all Government Approvals that are required by, or issued
         under, any applicable Environmental Law for the use or operation of the
         Real Property and Purchased Assets and the operation of the Business.

                  (b)      Compliance. Except as set forth on Schedule 4.24(b),
         NSC is in compliance in all material respects with all Environmental
         Laws relating to or otherwise affecting the Business and the ownership
         or operation of the Real Property and Purchased Assets. NSC has been in
         consistent compliance in all material respects with all Environmental
         Laws relating to or otherwise affecting the Business and the ownership
         or operation of the Real Property and Purchased Assets. The Real
         Property and Purchased Assets are either (i) capable of consistent and
         continuous compliance with any existing Environmental Law and any new
         Environmental Law that is scheduled to become effective with respect to
         the Business, the Real Property or Purchased Assets on a date
         ascertainable at Closing, or (ii) undergoing modification to enable
         them to so comply, and the full capital cost of any such modifications
         is reflected in the capital budget for the Business. To the best
         Knowledge of NSC, there are no pending or proposed new Environmental
         Laws that might adversely affect the Business, Real Property or
         Purchased Assets either before or after Closing.

                  (c)      Environmental Liability. Except as set forth on
         Schedule 4.24(b), NSC is not subject to any liability relating to any
         Environmental Claim, and Buyer will not after the Closing suffer or
         incur any liability relating to any Environmental Claim, based on any
         facts, circumstances or conditions existing on or prior to the Closing
         Date. Without limiting the foregoing, except as set forth on Schedule
         4.24(b), NSC is not subject to any liability, and Buyer will not after
         Closing suffer or incur any liability, based on any facts,
         circumstances or conditions existing prior to the Closing Date, as a
         result of the action or inaction of any person, including: (i) the
         violation or noncompliance with any Environmental Law by NSC, any
         predecessor or any other person for whose conduct NSC is or may be held
         responsible; (ii) the ownership or operation of, or any condition at,
         the Real Property or Purchased Assets, (iii) the Release, threatened
         Release or presence of any Contaminant at, on or under any Real
         Property; (iv) any hazardous activity conducted by NSC, any predecessor
         or by any other person for whose conduct NSC is or may be held
         responsible; (v) any Release by NSC, any predecessor or any other
         person acting as agent for or on behalf of NSC or any predecessor on
         any other property; (vi) any environmental remedial action required to
         be taken by NSC or any predecessor; (vii) the treatment, storage,
         transportation or disposal of any Contaminant at any facility or the
         arrangement for treatment, storage, transportation or disposal of any
         Contaminant at any facility from which there is a Release or threatened
         Release of Contaminant; and (viii) any of the foregoing occurring after
         the Closing Date that are based on any facts, circumstances or
         conditions existing on or prior to the Closing Date, including
         liabilities created or aggravated due to the migration after the
         Closing Date of Contaminant that was Released into the environment on
         or prior to the Closing Date.

                                       19
<PAGE>

                  (d)      Treatment, Disposal & Releases. Except as set forth
         on Schedule 4.24(b), (i) NSC has not treated, stored, recycled or
         disposed of any Contaminant on any Real Property or any part of the
         facilities in violation of any Environmental Law or in a manner that
         could result in any liability, (ii) there is and has been no Release or
         threat of Release of any Contaminant at, on or under or related to any
         Real Property or facility in violation of any Environmental Law or that
         could give rise to any liability, and (iii) there is no Contaminant
         present in the environment at, on or under any Real Property in
         violation of any Environmental Law or that could reasonably be expected
         to give rise to any liability.

                  (e)      Sites Used for Contaminant; Transactions with Listed
         Hazardous Sites. NSC has not arranged for the treatment or disposal of
         any Contaminant generated at the facilities or Purchased Assets or
         related to the Business, or arranged for the transportation of any such
         Contaminant for treatment or disposal, at any listed hazardous site.

                  (f)      Status of Real Property. To the Knowledge of NSC,
         none of the Real Property is listed or proposed for listing on (i) the
         National Priorities List under the Comprehensive Environmental
         Response, Compensation, and Liability Act ("CERCLA"), (ii) the
         Comprehensive Environmental Response, Compensation and Liability
         Information System ("CERCLIS") or (iii) any list established by a
         Governmental Body of sites potentially requiring environmental remedial
         action.

                  (g)      Existing Claims; Certain Regulated Materials. NSC has
         not received any written request, and to the best of NSC's Knowledge no
         unwritten request, for information, notice of claim, demand or other
         notification or communication that NSC is or may be potentially
         responsible with respect to any environmental liability, environmental
         remedial action or any threatened or actual Release of any Contaminant.
         There has been no past, and there is no pending, or to the best
         Knowledge of NSC contemplated, claim by or against NSC under any
         Environmental Law. NSC has not entered into any agreement with any
         person regarding any Environmental Law, environmental remedial action
         or other environmental liability or expense.

                  (h)      Storage Tanks.  Except as disclosed in
         Schedule 4.24(h), to the best Knowledge of NSC, there are no storage
         tanks located on the Real Property, whether underground or aboveground.

                  (i)      PCBs and Asbestos Containing Materials. To the
         Knowledge of NSC, there is no PCB equipment at the Real Property. To
         the Knowledge of NSC, there is no regulated asbestos containing
         material at the Real Property.

                  (j)      Sublease Matter.  Neither NSC nor any third party
         has stored any radioactive material of any kind on the Lake Charles
         property leased by NSC during the time that NSC has leased such
         property.

                                       20
<PAGE>

                  4.25     Product Liability; Warranty Liability. NSC has no
outstanding products liability claims asserted in writing relating to any
product rented, distributed or sold by NSC. Schedule 4.25 identifies a claims
history for products liability claims asserted against NSC during the past five
years. Schedule 4.25 discloses the terms of all of NSC's outstanding product and
service warranties for products rented, sold or serviced prior to the Closing
Date. Schedule 4.25 discloses all currently outstanding product or service
warranty claims with respect to which NSC has received written notice from the
customer that such claim has not been resolved to the customer's complete
satisfaction. During the past five years, NSC has not satisfied any products
warranty or service claims by its customers in a manner materially in excess of
the stated express warranties.

                  4.26     Transactions With Affiliates. Except as set forth in
Schedule 4.26, there are no contracts or arrangements (formal or informal,
written or oral), directly or indirectly, between NSC, on the one hand, the
Members and any family members or Affiliates of the Members or any persons
controlling, under common control with or controlled by NSC, on the other hand.

                  4.27     Principal Customers and Suppliers. Schedule 4.27 sets
forth a separate list of the ten (10) largest customers and suppliers of NSC
(excluding therefrom consulting services provided to NSC by Chris Abide and
Michael Woodell) in terms of purchases and sales during the fiscal year ended
December 31, 2005 and for the eight (8) month period ended August 31, 2006,
showing in each case the approximate total purchases and sales by or from each
such customer or supplier during such period. To the Knowledge of NSC, there has
not been any adverse change in the business relationship of NSC with any such
named customer or supplier, or any Material Adverse Change in the business
relationship of NSC with any other material customer or supplier.

                  4.28     Certain Payments. Neither NSC, the Members nor any
director, officer, agent, or employee of NSC, or any other person associated
with or acting for or on behalf of NSC, has directly or indirectly (a) made any
contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other
payment to any person, private or public, regardless of form, whether in money,
property, or services that would be in violation of any Law or Government Order
(i) to obtain favorable treatment in securing business, (ii) to pay for
favorable treatment for business secured, or (iii) to obtain special
concessions, or for special concessions already obtained, for or in respect of
NSC or any Affiliate of NSC, or (b) established or maintained any fund or asset
that has not been recorded in the books and records of NSC. To the best of its
Knowledge, NSC has at all times been in compliance with all Laws relating to
export control and trade embargoes.

                  4.29     Distributions. Except as set forth on Schedule 4.29,
no distributions, whether cash or any other kind, have been made by NSC to the
Members from August 31, 2006 through and including the Closing Date.

                  4.30     Disclosure. Except as expressly set forth in this
Agreement and the Schedules, NSC has no knowledge of any facts which will or may
reasonably be expected to have any adverse effect on the value of the Purchased
Assets or the Business.

         5.       Representations and Warranties of the Members. Each Member
                  ---------------------------------------------
hereby severally, and not jointly, represents and warrants to Buyer only with
respect to himself, herself or itself, and not with respect to any other Member
that the statements contained in this Article V are true and correct.

                                       21
<PAGE>

                  5.1      Status; Authority, Binding Agreement. The Member has
all requisite power and authority, corporate or otherwise, to enter into this
Agreement and to carry out his, her or its obligations hereunder. This Agreement
has been duly executed and delivered by the Member and this Agreement
constitutes, and all other agreements, documents and instruments to be executed
and delivered by the Member pursuant hereto will constitute, the legal, valid
and binding obligations of the Member, enforceable against the Member in
accordance with their terms (subject, as to the enforcement of remedies, to
general principles of equity and to bankruptcy, insolvency and similar laws
affecting creditors' rights generally).

                  5.2      Interest Ownership. The Member is the lawful
beneficial and record owner of, and has good and valid title to, the membership
interests in NSC as set forth on Schedule 4.3, free and clear of all mortgages,
liens, pledges, charges, security interests, encumbrances or other third party
interests of any nature whatsoever.

                  5.3      No Violation. Neither the execution and delivery of
this Agreement by the Member, nor the consummation by the Member of the
transactions contemplated hereby will constitute a violation of, or be in
conflict with (a) any judgment, decree, order, regulation or rule of any court
or governmental authority; (b) any statute, law or regulation; or (c) any
contract, agreement, indenture, lease or other commitment to which the Members
is a party.

                  5.4      Consents. No consent of, or notice to, any federal,
state or local authority, or any private person or entity, is required to be
obtained or given by the Member in connection with the execution, delivery or
performance of this Agreement or any other agreement or document to be executed,
delivered or performed hereunder by the Member.

         6.       Representations and Warranties of Buyer.  Buyer represents and
                  ---------------------------------------
warrants to NSC and the Members as follows:

                  6.1      Organization; Good Standing; Ownership.  Buyer is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware, and has all requisite corporate power and authority to
carry on its business as now conducted.

                  6.2      Authorization. Buyer has all requisite power and
authority to enter into this Agreement, to consummate the transactions
contemplated hereby and otherwise to carry out its obligations hereunder. The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of Buyer. Buyer has authorized Ryan McKendrick,
Susan Koser or any other officer of Buyer, to execute this Agreement on its
behalf. This Agreement constitutes, and all other agreements and documents to be
executed and delivered by Buyer pursuant hereto will constitute the valid and
binding agreements of Buyer, enforceable against it in accordance with their
terms (subject, as to the enforcement of remedies, to general principles of
equity and to bankruptcy, insolvency and similar laws affecting creditors'
rights generally).

                                       22
<PAGE>

                  6.3      No Violation. Neither the execution and delivery of
this Agreement, nor the consummation of the transactions contemplated hereby
will constitute a violation of, or be in conflict with, or result in a
cancellation of, or constitute a default under, or create (or cause the
acceleration of the maturity of) any debt, obligation or liability affecting, or
result in the creation or imposition of any security interest, lien, or other
encumbrance upon any of the Buyer's assets under: (a) any term or provision of
the certificate of incorporation or by-laws (or other organic document) of
Buyer; (b) any judgment, decree, order, regulation or rule of any court or
governmental authority; (c) any statute, law or regulation; (d) any contract,
agreement, indenture, lease or other commitment to which Buyer is a party or by
which it is bound; or (e) cause any material change in the rights or obligations
of any party under any such contract, agreement, indenture, lease or commitment.

                  6.4      Consents. No consent of, or notice to, any federal,
state or local authority, or any private person or entity, is required to be
obtained or given by Buyer in connection with the execution, delivery or
performance of this Agreement or any other agreement or document to be executed,
delivered or performed hereunder by Buyer or to enable Buyer to continue to
conduct the Business after the Closing in the manner in which it is currently
conducted.

         7.       Conditions to Closing.
                  ---------------------

                  7.1      Mutual Conditions.  The obligations of each party to
consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment at or prior to Closing of each of the following conditions:

                           7.1.1    No Suit. No suit, action or other proceeding
                  or investigation shall to the best knowledge of any party
                  hereto be threatened or pending before or by any governmental
                  agency or by any third party questioning the legality of this
                  Agreement or the consummation of the transactions contemplated
                  hereby in whole or in part.

                  7.2      Conditions to Buyer's Obligations.  The obligations
of Buyer to consummate the transactions contemplated by this Agreement shall be
subject to the fulfillment at or prior to Closing of each of the following
conditions:

                           7.2.1    Representations and Warranties. All
                  representations and warranties made by NSC and the Members
                  contained in this Agreement shall be true and correct as of
                  the Closing Date, and NSC and the Members shall have duly
                  performed or complied with all of the obligations to be
                  performed or complied with by them under the terms of this
                  Agreement on or prior to Closing.

                           7.2.2    Consents and Approvals. All authorizations,
                  consents, waivers, approvals or other action required in
                  connection with the execution, delivery and performance of
                  this Agreement by Buyer, NSC and the Members, and the
                  consummation by such parties of the transactions contemplated
                  hereby, shall have been obtained, and NSC and the Members
                  shall have obtained any authorizations, consents, waivers,
                  approvals or other action required in connection with the
                  execution, delivery and performance of this Agreement to
                  prevent a material breach or default by NSC under any contract
                  to which NSC is a party and for the continuation of any
                  agreement to which NSC is a party and which relates to the
                  business of NSC. Without limiting the foregoing, NSC shall
                  have obtained landlord consent and estoppel agreements in form
                  and substance satisfactory to Buyer for the following leased
                  locations: (i) Harvey, Louisiana, (ii) Lake Charles,
                  Louisiana., and (iii) Oakhurst Mobile Estates located in Lake
                  Charles, Louisiana. Further, Buyer shall have received
                  evidence that NSC and the landlord of the Harvey, Louisiana
                  property have agreed in writing to the manner in which
                  concrete repairs at the site will be addressed, in form and
                  substance satisfactory to Buyer.

                                       23
<PAGE>

                           7.2.3    Instruments of Assignment, Transfer and
                  Conveyance. NSC and the Members shall have delivered to Buyer
                  all instruments of assignment, transfer and conveyance
                  (including, but not limited to, written consents to assignment
                  in form and substance satisfactory to Buyer from the landlords
                  of the leases listed on Schedule 4.13), and such other Closing
                  documents as shall have been reasonably requested by Buyer,
                  all in form and substance reasonably acceptable to Buyer's
                  counsel.

                           7.2.4    No Material Change.  There shall have
                  occurred no Material Adverse Change (whether or not covered by
                  insurance) in the assets, financial condition or prospects of
                  the Business.

                           7.2.5    Good Standing Certificates. Buyer shall have
                  received certificates of legal existence and good standing
                  dated on or within thirty (30) days prior to the Closing for
                  NSC from the State of Louisiana and from Secretaries of State
                  of the jurisdictions set forth on Schedule 4.4.

                           7.2.6    Vehicle Titles. NSC shall have delivered
                  title certificates to any motor vehicles included in the
                  Purchased Assets, duly executed by NSC (together with any
                  other transfer forms necessary to transfer title to such
                  vehicles).

                           7.2.7    Required Consents. NSC shall provide copies
                  of any required Consents for Contracts identified on Schedule
                  4.14 with and evidence of satisfaction of all Legal Approvals
                  required to consummate the contemplated transactions, and all
                  Governmental Authorizations required to operate the Business,
                  unless waived by Buyer.

                           7.2.8    Lien Releases. NSC shall provide evidence
                  directly from Capital One Bank (f/k/a/ Hibernia National Bank)
                  and from all other creditors that hold the liens identified on
                  Schedule 4.12 as to full payment by NSC of all of its
                  indebtedness to such lenders and releases of all liens held by
                  such lenders on any of the Purchased Assets or, alternatively,
                  pay-off letters from such lenders specifying pay-off amounts
                  as of the scheduled Closing Date (with a per diem rate) and
                  written instruction from NSC authorizing Buyer to make payment
                  of such portion of the Purchase Price equal to the amounts
                  specified in such letters directly to such lender in
                  accordance with the terms of the pay-off letters.

                           7.2.9    Charter Amendment.  NSC shall deliver an
                  executed certificate of amendment to NSC's Articles of
                  Organization changing its name to one that does not include
                  the words "Nitrogen Specialty".

                                       24
<PAGE>

                           7.2.10   Retention Agreements. Each of CA, Stephen
                  Conner and James Coronato shall have executed and delivered to
                  Buyer retention agreements in form and substance satisfactory
                  to Buyer (the "Retention Agreements").

                           7.2.11   Opinions. Buyer shall have received from
                  Franklin, Cardwell & Jones , counsel to NSC, an opinion of
                  such counsel, dated as of the Closing Date, in form and
                  substance satisfactory to Buyer and Buyer's counsel; and Buyer
                  shall have received from McCranie, Sistrunk, Anzelmo, Hardy,
                  Maxwell & McDaniel, PC, counsel to Cecile Gervais Dufrene,
                  individually and as Independent Administratrix of the
                  Succession of James Joseph Dufrene, also known as James Joseph
                  Dufrene, Sr., an opinion of such counsel, dated as of the
                  Closing Date, opining favorably on the authority of such party
                  to approve and enter into and perform this Agreement and the
                  other documents and agreements entered into in connection
                  herewith by such party by and on behalf James Dufrene and the
                  enforceability of this Agreement and such other documents and
                  agreements against such party, in form and substance
                  satisfactory to Buyer and Buyer's counsel.

                           7.2.12   Escrow Agreement.  NSC, the Members and the
                  Escrow Agent shall have delivered the Escrow Agreement.

                  7.3      Conditions to NSC's and the Members' Obligations. The
obligations of NSC and the Members to consummate the transactions contemplated
by this Agreement shall be subject to the fulfillment at or prior to the Closing
of each of the following conditions:

                           7.3.1    Representations and Warranties. The
                  representations and warranties of Buyer contained in this
                  Agreement shall be true and correct as of the Closing Date,
                  and Buyer shall have duly performed or complied with all of
                  the obligations to be performed or complied with by it under
                  the terms of this Agreement on or prior to Closing.

                           7.3.2    Consents and Approvals. All authorizations
                  or approvals or other action required in connection with the
                  execution, delivery and performance of this Agreement by
                  Buyer, and the consummation by Buyer of the transactions
                  contemplated hereby, shall have been obtained.

                           7.3.3    Retention Agreements.  Buyer shall have
                  delivered the executed Retention Agreements to each of the
                  respective employees specified in Section 7.2.10.

                           7.3.4    Instruments of Assignment, Transfer and
                  Conveyance. Buyer shall have delivered to NSC and the Members
                  all Closing documents as shall have been reasonably requested
                  by NSC and the Members, all in form and substance reasonably
                  acceptable to NSC's counsel.

                                       25
<PAGE>

                           7.3.5    Opinion. NSC shall have received from Lord,
                  Bissell & Brook LLP, counsel to Buyer, an opinion of such
                  counsel, dated as of the Closing Date, in form and substance
                  satisfactory to NSC.

                           7.3.6    Escrow Agreement.  Buyer and the Escrow
                  Agent shall have delivered the Escrow Agreement.

         8.       Indemnification.  From and after the Closing, Buyer, NSC and
                  ---------------
the Members shall be indemnified as set forth below.

                  8.1 By NSC and the Members. NSC and the Members agree to
jointly and severally indemnify and hold harmless Buyer and its Affiliates,
against any loss, damage or expense (including court costs and reasonable
attorneys' fees) suffered by Buyer or its Affiliates, as a result of:

                  (a)      any breach by NSC or any Member in the performance of
         its obligations under this Agreement and the agreements or other
         matters provided for herein;

                  (b)      any inaccuracy in or breach of any representations or
         warranties made by NSC or the Members in this Agreement or any
         document, certificate, or Exhibit delivered by NSC or the Members in
         accordance with the provisions of this Agreement;

                  (c)      any liability of Buyer or its Affiliates for
         liabilities and obligations of NSC or the Members which are not
         included in the Assumed Liabilities;

                  (d)      any liabilities, damages or expenses, other than
         Assumed Liabilities, arising by reason of the ownership or operation by
         NSC of (i) the Excluded Assets before or after the Closing, or (ii) the
         Purchased Assets before the Closing;

                  (e)      any fees, expenses or other payments incurred or
         owed by NSC or any Member to any broker or similar party retained or
         employed by it in connection with the transactions contemplated by this
         Agreement; or

                  (f)      any claim made by a third party alleging facts which,
         if true, would entitle Buyer to indemnification pursuant to Sections
         8.1(a), (b), (c), (d) or (e).

                  8.2      By Buyer. Buyer agrees to indemnify and hold harmless
NSC and the Members against any loss, damage or expense (including court costs
and reasonable attorneys' fees) suffered by NSC or the Members as a result of:

                  (a)      any breach by Buyer in the performance of its
         obligations under this Agreement and the separate agreements provided
         for herein;

                  (b)      any inaccuracy in or breach of any representations or
         warranties made by Buyer in this Agreement or any document,
         certificate, or Exhibit delivered by Buyer in accordance with the
         provisions of this Agreement;

                  (c)      any Assumed Liability;

                                       26
<PAGE>

                  (d)      any liabilities, damages or expenses arising by
         reason of the ownership or operation by Buyer of the Purchased Assets
         after the Closing;

                  (e)      any fees, expenses or other payments incurred or
         owned by Buyer to any broker or similar party retained or employed by
         Buyer in connection with the transactions contemplated by this
         Agreement; or

                  (f)      any claim made by a third party alleging facts which,
         if true, would entitle NSC or the Members to indemnification pursuant
         to Sections 8.2(a), (b), (c), (d) or (e).

                  8.3      Method of Asserting Claims. The party claiming
indemnification hereunder (the "Indemnitee") will give prompt written notice
("Notice of Claim") to the party from whom such indemnification is sought (the
"Indemnitor") of any claim ("Claim") which it discovers or of which it receives
notice after the Closing and which might give rise to a Claim by it against the
Indemnitor under Section 8 hereof, stating the nature, basis and (to the extent
known or reasonably estimated) amount thereof; provided that failure to give
prompt notice shall not jeopardize the right of any Indemnitee to
indemnification unless such failure shall have materially prejudiced the ability
of the Indemnitor to defend or minimize the amount of such Claim.

                  In the case of any Claim or suit by a third party or by any
governmental body, or any legal, administrative or arbitration proceeding with
respect to which Indemnitor may have liability under this Section 8, Indemnitor
shall be entitled to participate therein, and to the extent desired by it or him
to assume the defense thereof, if Indemnitor gives written notice of its
election to assume the defense thereof within sixty (60) days of its receipt of
the Notice of Claim. If Indemnitor gives such notice to Indemnitee of the
election to assume the defense thereof, the Indemnitor will not be liable to the
Indemnitee for any legal or other expenses incurred by the Indemnitee in
connection with the defense thereof, following the receipt of such notice
provided for above, unless Indemnitor does not actually assume the defense
thereof following notice of such election. The parties will render to each other
such assistance as may reasonably be required of each other at Indemnitor's
expense, in order to insure proper and adequate defense of any such suit, Claim
or proceeding. If Indemnitor actually assumes the defense of the Indemnitee, the
Indemnitor shall have sole control of the defense and negotiations for the
settlement or compromise of such Claim, the Indemnitee will not make any
settlement of any Claim which might give rise to liability of any of the
Indemnitor under the indemnity agreements contained in this Section without the
written consent of Indemnitor, and the Indemnitor shall not agree to make any
settlement of any Claim which would not include the unconditional release of the
Indemnitee without the written consent of Indemnitee, which consent shall not be
unreasonably withheld, delayed or conditioned.

                                       27
<PAGE>

                  8.4      Nature and Survival of Representations. The
representations and warranties made by NSC under this Agreement in Section 4.11
(Taxes) and the right of Buyer and its Affiliates to seek indemnification
therefor under Section 8.1(b) of this Agreement shall survive the Closing for
the applicable statute of limitations. The representations and warranties made
by NSC under this Agreement in Section 4.24 (Environmental Matters) shall
survive the Closing until the fourth (4th) anniversary of the Closing Date, and
the right of any party to seek indemnification under Section 8.1(b) for claims
arising by reason of the inaccuracy of any such representations and warranties
shall continue until such time, and, with respect to any such claims for
indemnification that have been asserted in writing against NSC on or before the
fourth (4th) anniversary of the Closing Date, shall survive until such time as
such claims are resolved. All other representations and warranties made by NSC,
the Members and the Buyer under this Agreement shall survive the Closing until
the second (2nd) annual anniversary of the Closing Date, and the right of any
party to seek indemnification under Sections 8.1(b) and 8.2(b) for claims
arising by reason of the inaccuracy of any such representations and warranties
shall continue until such time, and, with respect to any such claims for
indemnification that have been asserted in writing against the other party on or
before the second (2nd) annual anniversary of the Closing Date, shall survive
until such time as such claims are resolved. All statements made herein or in
the Schedules by or on behalf of NSC and the Members, on the one hand, and the
Buyer on the other hand, or in any other document, instrument, certificate,
schedule or list delivered to any party hereunder shall be deemed
representations and warranties of the party making such statement relied upon by
the receiving party regardless of any investigation made by or on behalf of the
receiving party, and shall not be affected in any respect by such investigation.

                  8.5      Limitation on Indemnification. Except for Claims
arising by reason of fraud, willful misconduct or intentional misrepresentation,
no indemnification payment by the Members with respect to any Claims otherwise
payable under this Article 8 and arising out of or resulting from the causes
enumerated in Section 8.1(b) shall be payable until such time as all such Claims
shall aggregate to more than One Hundred Twenty-Five Thousand Dollars ($125,000)
(without giving effect for purposes of such determination to any "Material
Adverse Effect" or other materiality qualification set forth in any
representation or warranty), after which time NSC and the Members shall be
liable in full for all such Claims; provided that this Section 8.5 shall not
apply to the obligations of NSC and the Members (i) pursuant to Section 4.11 of
this Agreement (provided, however, that if Buyer is reimbursed for any claim
under Section 4.15 that a Receivable (other than an Aged Account) is not
collectable, then Buyer shall re-assign such Receivable to NSC and NSC shall be
entitled to enforce such Receivable as it may elect); and (ii) to deliver the
Purchased Assets to Buyer free and clear of all security interests, encumbrances
and charges or restrictions of any kind, except those specifically agreed to by
Buyer. Except for Claims arising by reason of fraud, willful misconduct or
intentional misrepresentation, in no event shall the obligation of NSC and/or
the Members to indemnify Buyer or its Affiliates for claims under Section 8.1(b)
of this Agreement exceed Five Million Dollars ($5,000,000) in the aggregate. In
addition, in no event shall the individual indemnification obligations of a
Member exceed an amount equal to (i) such Member's percentage interest in NSC as
set forth on Schedule 4.3, multiplied by (ii) the Purchase Price.

                  8.6      Escrow Deposit. Upon the Closing, Buyer, as an
allocation from the Purchase Price, shall deposit by wire transfer of
immediately available funds an amount equal to the Indemnification Escrow
Deposit plus the amount of the Aged Accounts Escrow Deposit in an escrow account
with the Escrow Agent in accordance with the Escrow Agreement by and among
Buyer, NSC, the Members and the Escrow Agent. Buyer agrees to collect any claims
for indemnification from the Indemnification Escrow Deposit, if any, held by the
Escrow Agent pursuant to the Escrow Agreement before collecting any such claims
from the Members; provided, however, that the foregoing shall not limit or
restrict Buyer from joining NSC or any Member in any action or proceeding
seeking indemnification or enforcement of Buyer's indemnification rights
hereunder or obtaining any judgments against NSC or any Member with respect
thereto.

                                       28
<PAGE>

                  8.7      Reduction of Indemnified Amounts.

                           8.7.1    Notwithstanding any provision of this
                  Article 8 to the contrary, Claims owed by the Members to Buyer
                  shall be reduced by the amount of any mitigating recovery
                  Buyer shall have received with respect thereto from any
                  recovery by Buyer under any insurance policies, to the extent
                  such recovery is received by Buyer at the time the Claim is
                  made, without regard to whether the Buyer or another person
                  paid the premiums therefor. If such a recovery is received by
                  Buyer after it receives payment or other credit under this
                  Agreement with respect to indemnified Claims, then a refund
                  equal to the aggregate amount of such recovery shall be made
                  promptly to the Members. Buyer shall use commercially
                  reasonable efforts to recover any such amount to which it is
                  entitled under any insurance policy, provided that Buyer shall
                  not be required to initiate or maintain any litigation to
                  recover any such amount.

                           8.7.2    Notwithstanding any provision of this
                  Article 8 to the contrary, Claims owed by Buyer to the Members
                  or NSC shall be reduced by the amount of any mitigating
                  recovery the Members or NSC shall have received with respect
                  thereto from any recovery by the Members or NSC under any
                  insurance policies, to the extent such recovery is received by
                  the Members or NSC at the time the Claim is made, without
                  regard to whether the Members or NSC or another person paid
                  the premiums therefor. If such a recovery is received by the
                  Members or NSC after they receive payment or other credit
                  under this Agreement with respect to indemnified Claims, then
                  a refund equal to the aggregate amount of such recovery shall
                  be made promptly to Buyer. The Members and NSC shall use
                  commercially reasonable efforts to recover any such amount to
                  which it or they are entitled under any insurance policy,
                  provided that neither the Members nor NSC shall be required to
                  initiate or maintain any litigation to recover any such
                  amount.

                  8.8      Exclusive Rights and Remedies. The provisions of this
Article 8 shall be the exclusive basis of the parties to this Agreement for (i)
any breach of a representation or warranty herein and (ii) any failure of a
party to comply with any obligation, covenant, agreement or condition herein.

         9.       Noncompete; Confidentiality; Nonsolicitation. Except as
                  --------------------------------------------
expressly set forth in that certain Retention Agreement dated as of even date
herewith between Christopher M. Abide and Buyer, in connection with the
acquisition of substantially all of the assets of NSC and all of the goodwill of
NSC by Buyer, for a period ending three (3) years after the Closing Date,
neither NSC, the Members nor their respective family members or Affiliates shall
engage in a business which competes with the business of NSC as conducted on the
Closing Date, directly or indirectly, personally or as an employee, owner,
consultant, manager, associate, partner, agent or otherwise, or by means of any
corporate or other device within the onshore and offshore markets of the states
of Louisiana (and the parishes thereof as listed on Schedule 9 hereof),
Mississippi, Alabama and Texas (such geographic area is hereafter referred to as
the "Territory"); nor shall the Members or their family members or Affiliates
for such period and in the Territory solicit orders, directly or indirectly from
any customer of Buyer or NSC, for any product or service substantially similar
to those sold, manufactured or distributed by NSC as conducted on the Closing
Date, personally or as an employee, owner, consultant, manager, associate,
partner, agent or otherwise, or by means of any corporate or other device; nor
shall the Members or their Affiliates for such period and in the Territory
solicit for employment any employee of NSC who continued employment after the
Closing Date.

                                       29
<PAGE>

                  The Members further acknowledges that by reason of their
affiliation with NSC, they have had access to confidential information of NSC.
The Members covenant and agree that the Members shall not use for their own
benefit or divulge to any third party any confidential information or trade
secrets of Buyer or NSC. As used herein, confidential information shall consist
of all information, knowledge or data relating to the business of NSC (including
without limit all information relating to inventions, production methods,
customer and prospective customer lists, prices and trade practices) which is
not in the public domain or otherwise published or publicly available.

                  This Section 9 shall not be construed to prohibit the
ownership by the Members of not more than five percent (5%) of the capital stock
of any corporation having a class of securities registered pursuant to the
Exchange Act of 1934.

                  The Members acknowledge that the restrictions contained in
this Section 9 are reasonable and necessary to protect the legitimate interests
of Buyer in connection with its purchase of all of the goodwill of NSC, do not
cause the Members undue hardship, and that any violations of any provision of
this Section 9 will result in irreparable injury to Buyer and that, therefore,
Buyer shall be entitled to preliminary and permanent injunctive relief, without
having to post any bond, in any court of competent jurisdiction and to an
equitable accounting of all earnings, profits and other benefits arising from
such violation, which rights shall be cumulative and in addition to any other
rights or remedies to which Buyer may be entitled.

         10.      Certain Tax Matters.
                  -------------------

                  (a)      Payment of Taxes on the Sale of the Purchased Assets.
         All sales, recording, title transfer and registration and other
         transfer Taxes payable by reason of the sale or transfer of the
         Purchased Assets (collectively, "Transfer Taxes") shall be paid by the
         Responsible Party, as herein defined; provided, however, that
         notwithstanding the foregoing, Buyer shall pay any transfer fees or
         sales taxes for any titled vehicles included in the Purchased Assets.
         As used herein, the Responsible Party shall be Buyer, except with
         respect to Transfer Taxes which are solely the responsibility of the
         seller of assets as a matter of law, in which case the Responsible
         Party shall be NSC. To the extent that a party other than the
         Responsible Party is required to file tax returns relating to Transfer
         Taxes (the "Filing Party"), the Filing Party shall prepare such tax
         returns and provide copies thereof to the Responsible Party prior to
         filing such tax returns. Upon filing such tax returns relating to
         Transfer Taxes, the Filing Party shall make payment of such Transfer
         Taxes, whereupon the Responsible Party shall reimburse the Filing Party
         for the amount so paid, provided that the Responsible Party may elect
         to make payment directly to the applicable Governmental Body, in which
         case the parties shall cooperate to coordinate the filing of the
         applicable tax returns and payment of the corresponding Transfer Taxes.
         To the extent that any Governmental Body seeks to collect Transfer
         Taxes from any party other than the Responsible Party, the Responsible
         Party shall pay, or reimburse such other party for payment of, such
         Transfer Taxes, provided that such other party shall give prompt notice
         to the Responsible Party of any such collection efforts and shall
         permit the Responsible Party to control any proceedings contesting any
         such Transfer Taxes. Each party agrees to cooperate with the other to
         qualify for any exemptions for Transfer Taxes, and to execute any and
         all resale certificates or other documents or other forms reasonably
         necessary to qualify for any such exemptions.

                                       30
<PAGE>

                  (b)      Mutual Cooperation. Buyer and NSC shall each assist
         the other as may reasonably be requested by either of them with the
         preparation of any Tax Return, any Tax audit, or any judicial or
         administrative proceedings relating to any Tax. In addition, each party
         shall retain and provide the other with any records or information that
         may be relevant to such Tax Return, Tax audit, proceeding or
         determination. The party requesting assistance under this Section shall
         reimburse the party providing assistance for direct out-of-pocket
         expenses incurred in providing such assistance.

         11.      Publicity. Neither party shall issue any press release or
                  ---------
otherwise make any announcements to the public regarding this Agreement or the
contemplated transactions, including the amount of the Purchase Price, without
the prior written consent of the other party, except as required by any
applicable legal requirements; provided, however, unless legally required, the
parties shall use commercially reasonable efforts to keep the Members unnamed in
any press release concerning the transactions contemplated by this Agreement.
Each party shall keep this Agreement and its contents strictly confidential,
except as required by any applicable legal requirements; provided, however, that
notwithstanding anything to the contrary in this Section 11, this Agreement
shall not be deemed to limit or restrict Buyer or its affiliates in any manner
from filing a Form 8-K concerning this Agreement and the transactions
contemplated hereby with the U.S. Securities and Exchange Commission and
attaching a full copy of this Agreement to such filing to the extent determined
by Buyer or its affiliates to be necessary or desirable in connection with the
conduct of its business. Prior to the Closing, the parties shall consult
concerning the means by which the employees, customers, and suppliers and others
having dealings with NSC will be informed of the contemplated transactions.

         12.      Certain Transitional Matters.
                  ----------------------------

                  (a)      Endorsement of Checks. Buyer shall have the right and
         authority to retain and endorse without recourse the name of NSC on any
         check or any other evidences of Indebtedness received by Buyer on
         account of the Business and arising from the Purchased Assets. To the
         extent that Buyer comes into the possession of any check or any other
         evidences of Indebtedness received by Buyer and relating to the
         Excluded Assets, Buyer shall promptly deliver the same to NSC.

                  (b)      Remit Funds. After the Closing, NSC shall promptly
         transfer and deliver to Buyer any cash or other property, if any, that
         is included in the Purchased Assets received by NSC. After the Closing,
         Buyer shall promptly transfer and deliver to NSC any cash or other
         property, if any, that is included in the Excluded Assets and is
         received by Buyer.

                                       31
<PAGE>

                  (c)      Assumed Liabilities Controlled by Buyer. Buyer shall
         have complete control over the payment, settlement or other disposition
         of, or any dispute involving, any Assumed Liability, and Buyer shall
         have the right to conduct and control all negotiations and proceedings
         with respect thereto. NSC and the Members shall notify Buyer promptly
         of any claim made against NSC or any Member with respect to any Assumed
         Liability.

                  (d)      Assistance. NSC and the Members shall cooperate with
         and assist Buyer and its authorized representatives in order to
         provide, to the extent reasonably requested by Buyer, an efficient
         transfer of control of the Purchased Assets and to avoid any undue
         interruption in the activities and operations of the Business.

                  (e)      Retained Liabilities Controlled by NSC. NSC shall
         have complete control over the payment, settlement or other disposition
         of, or any dispute involving, any Retained Liability, and NSC shall
         have the right to conduct and control all negotiations and proceedings
         with respect thereto; provided, however, that in no event shall NSC or
         the Members or any of their respective Affiliates file any suit or
         institute or maintain any collection or enforcement actions against any
         current or former customer of the Business without in each case the
         prior written consent of the Buyer, except that NSC may enforce and
         collect any Uncollected Aged Account reassigned to NSC under the terms
         of Section 2.2(c) after the end of the Escrow Period if the account
         debtor thereon (i) is subject to a bankruptcy or insolvency proceeding
         at the time, or (ii) is an account debtor specified on Schedule 12(e)
         for which Buyer has separately agreed prior to Closing that it will not
         object to collection actions by NSC. Buyer shall notify NSC promptly of
         any claim made against Buyer with respect to any Retained Liability.

                  (f)      Change of Seller's Name. Within one (1) business day
         after the Closing, Seller shall file appropriate documents with the
         Secretary of State of Louisiana and those other jurisdictions listed on
         Schedule 4.4 in which NSC is qualified to do business to change the
         corporate name of NSC and to transfer its interests in the trade names
         and coordinate with Buyer to allow Buyer to simultaneously file such
         corporate documents as may be reasonably necessary for Buyer to acquire
         the rights to each corporate name should it so desire.

                  (g)      Insurance. Buyer shall be obligated to procure its
         own insurance on the Business commencing on the Closing Date. NSC shall
         be solely responsible for receiving a refund of any insurance premium
         payments that have been prepaid.

                  (h)      Ad Valorem Taxes. With regard to ad valorem Taxes on
         the Purchased Assets for the 2006 tax year, NSC and Buyer agree that
         such Taxes shall be prorated between NSC and Buyer as of the Closing
         Date such that NSC shall be responsible for (and shall pay to Buyer or
         accrue on the preliminary closing balance sheet delivered under Section
         2.1 and on the Final Closing Statements an amount equal to) all ad
         valorem Taxes attributable to or incurred with respect to the Purchased
         Assets prior to the Closing Date and Buyer shall be responsible for and
         shall pay to the appropriate Governmental Authorities all ad valorem
         Taxes attributable to or incurred with respect to the Purchased Assets
         on or after the Closing Date. On or prior to the due date, Buyer shall
         pay to the appropriate authorities all amounts of ad valorem taxes on
         the Purchased Assets due and owing to the appropriate Government
         Authorities including but not limited to the amounts paid to Buyer by
         NSC for NSC's pro rata share of such ad valorem Taxes.

                                       32
<PAGE>

                  (i)      Assignment of Contracts. To the extent that the
         assignment of any Contract shall require the consent of a governmental
         authority or third party, and Buyer shall have waived the obtaining of
         such consent prior to Closing, this Agreement shall not constitute a
         contract to assign the same until such consent is obtained. NSC and
         Buyer shall use their commercially reasonable efforts after Closing to
         obtain any consent necessary to any such assignment. If any such
         consent is not obtained, (i) this Agreement shall not constitute or be
         deemed to be a contract to assign the same if an attempted assignment
         without such consent, approval or waiver would constitute a breach of
         such Contracts or create in any party thereto the right or power to
         cancel or terminate such Contracts; and (ii) NSC and Members will
         cooperate with Buyer, at Buyer's expense, in any reasonable arrangement
         requested by Buyer and designed to provide to Buyer the benefit,
         monetary or otherwise, of NSC's rights under such Contracts, including
         enforcement of any and all rights of NSC and Members against the other
         party thereto arising out of a breach or cancellation thereof by such
         other party, and to the extent Buyer is afforded the benefits
         thereunder, Buyer shall perform NSC's obligations thereunder.

         13.      Severance, Change of Control and Termination Payments.
                  -----------------------------------------------------
NSC shall (a) pay, perform and discharge any and all severance payments and
other Liabilities with respect to employees of NSC that result from the transfer
of the Purchased Assets hereunder and the employment by Buyer of those
employees, whether or not described as a "change of control", "termination" or
similar term, and (b) indemnify and hold harmless Buyer and its directors,
officers, and Affiliates from and against any and all Damages, that any of the
aforesaid may suffer or incur by reason of or relating to any Liabilities
referred to in clause (a) above.

         14.      Certain Employment Matters. Buyer shall offer employment to
                  --------------------------
all or substantially all of the employees of NSC (all of such employees
accepting employment with Buyer as of the Closing (including CA), the
"Transferring Employees"). Buyer's offer of employment will be made subject to
Buyer's standard employment practices and the satisfactory completion of Buyer's
employment process, including, without limitation, completion of a background
check and drug screen for each employee. The salaries offered to the
Transferring Employees at Closing will be generally similar to the salaries paid
by NSC, and the benefits offered to the Transferring Employees will be
consistent with the benefits generally provided to Buyer's other employees;
provided, however, that the employment terms offered to CA, Stephen Conner and
James Coronato shall be the terms set forth in their respective offer letters
and/or Retention Agreements, as applicable. NSC and the Members shall cooperate
with Buyer in the dissemination of such offers of employment together with any
appropriate related documentation such as applications for employment, tax and
benefit forms and the like and provide Buyer with reasonable assistance in the
collection thereof. Buyer shall treat the prior service of Transferring
Employees with NSC as service rendered to Buyer for purposes of eligibility and
vesting thereunder, except where such service crediting would violate applicable
laws or require Buyer, under applicable laws, to increase benefits for its other
employees; provided, however, that such prior service shall not be credited for
purposes of benefit accrual under any defined benefit pension plan of Buyer.

                                       33
<PAGE>

         15.      Benefit Plan Matters. As of the Closing Date, each of the
                  --------------------
Transferring Employees who has an account balance in any defined contribution
plan, savings or retirement plan (the "Defined Contribution Plans") maintained
by NSC shall be deemed fully vested in, and entitled to receive a distribution
of, his or her entire account balance following the Closing Date. As of the
Closing Date, the Transferring Employees shall cease to be eligible to make or
receive contributions under the Defined Contribution Plans of NSC; provided,
however, that any contribution required to be made with respect to the
participation of the Transferring Employees in such Defined Contribution Plans
on or immediately prior to the Closing Date shall be made by NSC in accordance
with NSC's standard administrative practice for such Defined Contribution Plans.
Similarly, as of the Closing Date, each of the Transferring Employees who has an
accrued benefit in any defined benefit retirement plan maintained by NSC (the
"Defined Benefit Plans") shall be deemed fully vested in, and entitled to
receive a distribution of, his or her entire accrued benefit in accordance with
the terms of the Defined Benefit Plans. As of the Closing Date, the Transferring
Employees shall cease to be eligible to participate in the Defined Benefit Plans
of NSC; provided, however, that any contribution required to be made with
respect to the participation of the Transferring Employees in such Defined
Benefit Plans on or immediately prior to the Closing Date shall be made by NSC
in accordance with NSC's standard administrative practice for such Defined
Benefit Plans. NSC shall retain all liability for any and all Benefit Plans of
NSC (all of which are intended to be included in Retained Liabilities),
including plans, programs and arrangements which provide medical and dental
coverage and life and accident insurance, disability insurance for the
Transferring Employees (or their eligible dependents) with respect to claims
incurred prior to the Closing Date and Buyer shall be responsible for all
liability for any and all welfare benefit plans of Buyer with respect to claims
incurred on or after the Closing Date. For the foregoing purposes, a claim shall
be deemed to be incurred on the date on which medical or other treatment or
service was rendered and not the date of inception of an illness or injury or
the date on which a claim for treatment or service is submitted. At or prior to
Closing, NSC shall pay all bonuses, whether or not accrued on the Closing
Balance Sheet, but payable to any Transferring Employees who are eligible for
any such payment pursuant to NSC's bonus plan as of the Closing. No severance
payment or other benefit will be due to the Transferring Employee solely as a
result of the sale of the Business as contemplated by this Agreement.

         16.      Product Liability and Product Warranties.
                  ----------------------------------------

                  (a)      Products Liability. NSC shall be liable for all
         express and implied products liability for all products shipped,
         distributed, assembled or sold by, or any services provided by, NSC
         prior to the Closing Date. Buyer shall liable for all express and
         implied products liability for all products shipped, distributed,
         assembled or sold by, or any services provided by, Buyer on or after
         the Closing Date.

                                       34
<PAGE>

                  (b)      Products and Service Warranties. Except as set forth
         in the last sentence of this Section, Buyer shall, subject to
         reimbursement by NSC upon invoicing therefor as provided in this
         Section, be responsible for all express product and services warranty
         obligations made by NSC prior to Closing. Buyer agrees to notify NSC
         promptly of any notice or claims for warranty work respecting products
         sold or services rendered by NSC which Buyer receives following the
         Closing and to perform such warranty work only if commercially
         reasonable in accordance with CETCO's practices. Buyer shall invoice
         NSC at Buyer's cost for parts and materials used, in satisfying such
         product warranty obligations provided that Buyer shall not invoice NSC
         for any such parts, materials or services unless at such time the
         aggregate amount owing by NSC to Buyer in respect of such parts,
         materials or services equals or exceeds $5,000. Upon receipt by NSC
         from Buyer of any invoice in respect of parts, materials and services
         furnished in accordance with the immediately preceding sentence, NSC
         shall be responsible to pay to Buyer the amount of such invoice. If
         monies are owing from NSC to Buyer under the terms of this Section
         16(b), then such amounts shall be paid to Buyer from the
         Indemnification Escrow Deposit in accordance with the terms of the
         Escrow Agreement; provided, however, in the event and to the extent
         that such amounts are not paid to Buyer from the Indemnification Escrow
         Deposit for any reason within ten (10) days of when due and owing, NSC
         shall pay such amounts to Buyer upon written demand therefor. Buyer
         shall, at its own cost and expense, be responsible for all express
         product and service warranty obligations made by NSC prior to Closing
         if such warranty obligations result directly from any product assembled
         or manufactured by, or any service provided by, Buyer.

         17.      General Provisions.  NSC, the Members and Buyer further
                  ------------------
covenant and agree as follows:

                  17.1     Waiver of Terms. Any of the terms or conditions of
this Agreement may be waived at any time by the party or parties entitled to the
benefit thereof but only by a written instrument signed by the party or parties
waiving such terms or conditions.

                  17.2     Amendment of Agreement. This Agreement may be
amended, supplemented or interpreted at any time only by written instrument duly
executed by each party hereto.

                  17.3     Payment of Expenses. Regardless of whether the
Closing shall occur, NSC and the Members shall pay all expenses incurred by or
on behalf of NSC and the Members, and Buyer shall pay all expenses incurred by
or on behalf of Buyer in connection with the preparation, execution and delivery
of this Agreement and the other agreements and documents referred to herein and
the consummation of the transactions contemplated hereby and thereby.

                  17.4     Contents of Agreement; Binding Nature. This Agreement
and the other agreements and documents to be delivered by the parties as
provided herein set forth the entire understanding of the parties with respect
to the subject matter hereof. Any previous agreements or understanding between
the parties regarding such subject matter are merged into and superseded by this
Agreement. All representations, warranties, covenants, terms and conditions of
this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the successors and assigns of the parties hereto.

                  17.5     Notices. All notices, requests, demands and other
communications required or permitted to be given hereunder shall be by hand
delivery; certified or registered mail, return receipt requested; telecopier; or
air courier; to the parties set forth below. Such notices shall be deemed given:
at the time personally delivered, if delivered by hand or by courier; at the
time received if sent certified or registered mail; and when receipt
acknowledged by receiving telecopy equipment, if telecopied.

                                       35
<PAGE>

                  If to Buyer:                CETCO Oilfield Services Company
                                              1500 W. Shure
                                              Arlington Heights, Illinois 60004
                                              Attn:  President
                                              Telephone No.: 847.392.5800
                                              Telecopier No.: 847.506.6150

                  With a copy to:             Lord, Bissell & Brook LLP
                                              111 S. Wacker Dr.
                                              Chicago, Illinois 60606
                                              Attn:  James W. Ashley, Jr.
                                              Telephone No.: 312.443.0700
                                              Telecopier No.: 312.443.0336

                  If to NSC or the Members:   c/o Christopher M. Abide
                                              Nitrogen Specialty Company, L.L.C.
                                              P. O. Box 1208
                                              Harvey, Louisiana 70059
                                              Telephone No.: 504-363-7788
                                              Telecopier No.: 504-363-1247

                  With a copy to:             Kemberlia K. Ducote
                                              433 Metairie Road
                                              Suite 600
                                              Metairie, Louisiana 70005
                                              Telephone No.: 504.833.7700
                                              Telecopier No.: 504.833.7787

                  With a copy to:             Franklin, Cardwell & Jones, P.C.
                                              1001 McKinney, 18th Floor
                                              Houston, Texas 77002
                                              Attn: J. Randolph Ewing
                                              Telephone No.: 713.222.6025
                                              Telecopier No. : 713.227.5657

                  17.6     Severability. In the event that any one or more of
the provisions contained in this Agreement shall be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions of this Agreement shall not be in any way impaired.

                                       36
<PAGE>

                  17.7     Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                  17.8     Headings.  The headings of the Sections and the
subsections of this Agreement are inserted for convenience of reference only and
shall not constitute a part hereof.

                  17.9     Governing Law and Venue. This Agreement shall be
governed, construed and enforced in accordance with the internal laws of the
State of Delaware, excluding any choice of law rules that may direct the
application of the laws of another jurisdiction. The parties hereby irrevocably
consent to the exclusive jurisdiction of the Texas State Courts or the Federal
Courts sitting in Houston, Harris County, Texas over any suit, action or
proceeding which arises out of or relates in any way to this Agreement and
consent to the service of process by registered mail, return receipt requested
or by other means provided by applicable law. The parties hereby waive the right
to contest the jurisdiction or venue of said courts located in Houston, Harris
County, Texas.

                  17.10    Instruments of Further Assurance. Each of the parties
hereto agrees, upon the request of any of the other parties hereto, from time to
time to execute and deliver to such other party or parties all such instruments
and documents of further assurance or otherwise as shall be reasonable under the
circumstances, and to do any and all such acts and things as may reasonably be
required to carry out the obligations of such requested party hereunder.

                  17.11    Brokers or Finders. Except as set forth on Schedule
17.11, each of Buyer, NSC and the Members represents, as to itself and its
Affiliates, that no agent, broker, investment banker, financial advisor or other
firm or person is or will be entitled to any broker's or finder's fee or any
other commission or similar fee in connection with any of the transactions
contemplated by this Agreement. Each of Buyer, NSC and the Members agrees to
indemnify and hold the other harmless from and against any and all claims,
liabilities or obligations with respect to any other fees, commissions or
expenses asserted by any person on the basis of any act or statement alleged to
have been made by such party or its Affiliate.

                  17.12    No Third Party Beneficiaries. Nothing in this
Agreement is intended nor shall it be construed to give any person, firm,
corporation or other entity, other than the parties hereto and their successors
and assigns, any right, remedy or claim under or in respect of this Agreement or
any provisions hereof.

                            [Signature Page Follows]

                                       37
<PAGE>

                  [Signature Page to Asset Purchase Agreement]

         IN WITNESS WHEREOF, this Agreement has been duly executed by the
parties hereto as of the day and year first above written.

                                          CETCO OILFIELD SERVICES COMPANY,
                                          a Delaware corporation

                                          By:    /s/ Michael R. Johnson
                                                 -------------------------------
                                          Name:  Michael R. Johnson
                                          Title: President

                                          NITROGEN SPECIALTY COMPANY, L.L.C., a
                                          Louisiana limited liability company

                                          By:    /s/ Christopher M. Abide
                                                 -------------------------------
                                                 Christopher M. Abide, President

                                          THE MEMBERS:

                                                 /s/ Christopher M. Abide
                                                 -------------------------------
                                                 CHRISTOPHER M. ABIDE

                                                 /s/ Gerald A. Boelte
                                                 -------------------------------
                                                 GERALD A. BOELTE

                                                 /s/ Kemberlia K. Ducote
                                                 -------------------------------
                                                 KEMBERLIA K. DUCOTE

                                                 /s/ Cecile Gervais Dufrene
                                                 -------------------------------
                                                 CECILE GERVAIS DUFRENE,
                                                 INDIVIDUALLY AND AS
                                                 INDEPENDENT ADMINISTRATRIX
                                                 OF THE SUCCESSION OF JAMES
                                                 JOSEPH DUFRENE, ALSO KNOWN
                                                 AS JAMES JOSEPH DUFRENE, SR.

                                                 /s/ Roy T. Sembera
                                                 -------------------------------
                                                 ROY T. SEMBERA

                                                 /s/ Wayne P. Whitman
                                                 -------------------------------
                                                 WAYNE P. WHITMAN

                                       38
<PAGE>

                             APPENDIX OF DEFINITIONS
                             -----------------------

         The following definitions shall be applicable for purposes of the
Agreement except as otherwise specifically provided to the contrary in the text
of the Agreement.

         "Affiliates" of a person shall mean any person or entity controlling,
controlled by or under common control with that person or any family members of
such person. "Control" for this purpose shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities or
interests, by contract, or otherwise.

         "Aged Accounts" shall mean those recivables of NSC aged greater than 90
days past invoice date as of the Closing Date, excluding in any event therefrom
any receivable arising other than in the ordinary course of NSC's business, any
receivable for which a customer is disputing all or portion of the invoiced
amount, any receivable for which a customer has claimed a right of offset or
asserted a counterclaim against the invoiced amount, and any receivable from a
customer that is insolvent or subject to bankruptcy or receivership proceedings.

         "Aged Accounts Amount" shall mean the amount, as of Closing, of the
Aged Accounts, less the amount therefor reserved in the Final Purchased Balance
Sheet.

         "Business" shall have the meaning given in the second Recital to this
Agreement.

         "Contaminant" shall mean material or substance which is or may be
hazardous or toxic, or which could otherwise pose a risk to health, safety or
the environment or which is regulated, prohibited or controlled pursuant to or
the subject of any Environmental Laws, including any hazardous substance as
defined in 42 U.S.C. Section 9601(14), solid waste as defined in 42 U.S.C.
Section 6903(27), pollutant or contaminant as defined in 42 U.S.C. Section
9601(33), or any other waste, pollutant, hazardous waste (as defined in 42
U.S.C. Section 6903(5), petroleum (as defined in 42 U.S.C. Sections 6911(2)(B),
petroleum-based substance, by-product, breakdown product or waste, oil (as
defined in 33 U.S.C. Section 2701(23), special waste, sludge (as defined in 42
U.S.C. Section 6903(26A), or any constituent of any such substance or waste and
specifically including polychlorinated biphenyls, asbestos, asbestos-containing
material, urea formaldehyde or radioactive material.

         "Environment" shall mean surface waters, groundwaters, surface water
sediment, soil, subsurface strata, ambient air and other environmental medium.

         "Environmental Claims" shall mean any and all actions, suits, demands,
demand letters, claims, liens, notices of noncompliance or violation, notices of
liability or potential liability, investigations, proceedings, consent orders or
consent agreements relating in any way to any Environmental Law or any
Contaminant or arising from any alleged injury to threat of injury to health,
safety or the Environment.

         "Environmental Law" shall mean any Law, rule or regulation, now or
hereafter in effect and as amended, and any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent
decree or judgment, relating to pollution or protection of the Environment,
health, safety or natural resources or to the use, handling, transportation,
treatment, storage, disposal, release or discharge of Contaminants.

                                       39
<PAGE>

         "Environmental Permit" shall mean any permit, Approval, identification
number, license, or other authorization required to operate the Business under
any applicable Environmental Law.

         "Escrow Agent" shall mean Wells Fargo Bank, National Association.

         "Escrow Agreement" shall mean the Escrow Agreement by and between NSC,
the Members, Buyer and the Escrow Agent dated as of even date herewith.

         "Escrow Period" shall mean a period of time commencing as of the
Closing Date and continuing until the one (1) year anniversary date of the
Closing Date.

         "Final Purchased Balance Sheet" shall mean the balance sheet of NSC, as
adjusted for any Excluded Assets or Retained Liabilities recorded therein for
which Buyer is not purchasing or assuming pursuant to the terms of this
Agreement and excluding therefrom insurance prepayments, as included in the
Final Closing Statements.

         "Financial Statements" as used herein shall include the financial
statements described in Section 4.8 hereto.

         "Governmental Approvals" shall mean other permits, licenses, consents,
certificates, orders, authorizations and approvals issued by any governmental
authority required to operate the Business.

         "Governmental Authority" means any United States federal, state or
local or any non-U.S. government, governmental, regulatory or administrative
authority, state enterprise, agency or commission or any court, tribunal, or
judicial or arbitral body.

         "Governmental Order" means any order, writ judgment, injunction,
decree, stipulation, determination or award entered by or with any Governmental
Authority.

         "Knowledge" The phrase "to the Knowledge of", "to the best Knowledge
of", "to the best of its Knowledge", "to the best of NSC's Knowledge" or similar
phrases mean those facts and circumstances known to any of the Members, James
Coronato, Stephen Conner and Phyllis Legendre (and, in addition, with respect to
the representations and warranties set forth in Section 4.12, facts and
circumstances known to any of such individuals or to any of David Matthew, Paul
Gelbke and Patrick Brown), or facts which should have reasonably been known by
said individuals given their positions with NSC, in each case after due inquiry
by such persons to those employees of NSC who in the ordinary course of their
duties would be reasonably likely to have knowledge of the facts or
circumstances in question.

         "Law" means any federal, state, local or non-U.S. statute, law,
ordinance, regulation, rule, code, order, other requirement or rule of law.

         "Material Adverse Change" or "Material Adverse Effect" or other similar
phrase including the word "material" with respect to the condition (financial or
otherwise), assets, liabilities, Business, operations or prospects of NSC shall
mean any adverse change or effect or potential adverse change or effect, or any
series thereof, involving more than Fifty Thousand Dollars ($50,000) in the
aggregate.

                                       40
<PAGE>

         "Net Sales" shall have the meaning as commonly defined in US GAAP.

         "Release" shall mean disposing, discharging, injecting, spilling,
leaking, leaching, dumping, emitting, escaping, emptying, seeping, placing, and
the like into or upon any land or water or air or otherwise into the
Environment.

         A "Tax" or, collectively, "Taxes," means any and all federal, state,
local or foreign taxes of any country or governmental body, assessments and
other governmental charges, duties, impositions and liabilities, including taxes
based upon or measured by gross receipts, income, profits, sales, use and
occupation, and value added, ad valorem, transfer, franchise, withholding,
payroll, recapture, employment, excise, property taxes and all other taxes and
assessments of whatever nature, together with all interest, penalties and
additions imposed with respect to such amounts and related thereto and any
obligations under any agreements or arrangements with any other person with
respect to such amounts and including any liability for taxes of a predecessor
entity.

         "US GAAP" means accepted accounting principles generally accepted in
the United States as promulgated by the Financial Accounting Standards Board,
Securities and Exchange Commission and other similar bodies.

                                       41Exhibit 4.1

                        AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                            CRM USA Holdings Trust I

                          Dated as of November 14, 2006

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>               <C>                                                                      <C>
                                          ARTICLE I.
                                INTERPRETATION AND DEFINITIONS

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

                                          ARTICLE II.
                                         ORGANIZATION

Section 2.1.      Name.....................................................................11

Section 2.2.      Office...................................................................11

Section 2.3.      Purpose..................................................................11

Section 2.4.      Authority................................................................12

Section 2.5.      Title to Property of the Trust...........................................12

Section 2.6.      Powers and Duties of the Trustees and the Administrators.................12

Section 2.7.      Prohibition of Actions by the Trust and the Trustees.....................17

Section 2.8.      Powers and Duties of the Institutional Trustee...........................18

Section 2.9.      Certain Duties and Responsibilities of the Trustees and the
                  Administrators...........................................................19

Section 2.10.     Certain Rights of Institutional Trustee..................................21

Section 2.11.     Delaware Trustee.........................................................24

Section 2.12.     Execution of Documents...................................................24

Section 2.13.     Not Responsible for Recitals or Issuance of Securities...................24

Section 2.14.     Duration of Trust........................................................24

Section 2.15.     Mergers..................................................................24

                                         ARTICLE III.
                                           SPONSOR

Section 3.1.      Sponsor's Purchase of Common Securities..................................26

Section 3.2.      Responsibilities of the Sponsor..........................................26

                                         ARTICLE IV.
                                 TRUSTEES AND ADMINISTRATORS

Section 4.1.      Number of Trustees.......................................................27

Section 4.2.      Delaware Trustee.........................................................27

Section 4.3.      Institutional Trustee; Eligibility.......................................27

Section 4.4.      Certain Qualifications of the Delaware Trustee Generally.................28

Section 4.5.      Administrators...........................................................28

Section 4.6.      Initial Delaware Trustee.................................................28
</TABLE>

                                             -i-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>               <C>                                                                      <C>
Section 4.7.      Appointment, Removal and Resignation of the Trustees and the
                  Administrators...........................................................28

Section 4.8.      Vacancies Among Trustees.................................................30

Section 4.9.      Effect of Vacancies......................................................30

Section 4.10.     Meetings of the Trustees and the Administrators..........................31

Section 4.11.     Delegation of Power......................................................31

Section 4.12.     Merger, Conversion, Consolidation or Succession to Business..............31

                                          ARTICLE V.
                                        DISTRIBUTIONS

Section 5.1.      Distributions............................................................32

                                         ARTICLE VI.
                                    ISSUANCE OF SECURITIES

Section 6.1.      General Provisions Regarding Securities..................................32

Section 6.2.      Paying Agent, Transfer Agent, Calculation Agent and Registrar............34

Section 6.3.      Form and Dating..........................................................35

Section 6.4.      Book-Entry Capital Securities............................................35

Section 6.5.      Mutilated, Destroyed, Lost or Stolen Certificates........................45

Section 6.6.      Temporary Securities.....................................................46

Section 6.7.      Cancellation.............................................................46

Section 6.8.      Rights of Holders; Waivers of Past Defaults..............................46

                                         ARTICLE VII.
                             DISSOLUTION AND TERMINATION OF TRUST

Section 7.1.      Dissolution and Termination of Trust.....................................48

                                        ARTICLE VIII.
                                    TRANSFER OF INTERESTS

Section 8.1.      General..................................................................49

Section 8.2.      Transfer Procedures and Restrictions.....................................51

Section 8.3.      Deemed Security Holders..................................................54

Section 8.4.      Intentionally Omitted....................................................54

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

Section 9.1.      Liability................................................................54

Section 9.2.      Exculpation..............................................................54
</TABLE>

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                         PAGE
                                                                                         ----
<S>               <C>                                                                      <C>
Section 9.3.      Fiduciary Duty...........................................................55

Section 9.4.      Indemnification..........................................................56

Section 9.5.      Outside Businesses.......................................................59

Section 9.6.      Compensation; Fee........................................................59

                                          ARTICLE X.
                                          ACCOUNTING

Section 10.1.     Fiscal Year..............................................................59

Section 10.2.     Certain Accounting Matters...............................................60

Section 10.3.     Banking..................................................................61

Section 10.4.     Withholding..............................................................61

                                         ARTICLE XI.
                                   AMENDMENTS AND MEETINGS

Section 11.1.     Amendments...............................................................61

Section 11.2.     Meetings of the Holders of the Securities; Action by Written Consent.....63

                                         ARTICLE XII.
                REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

Section 12.1.     Representations and Warranties of Institutional Trustee..................65

Section 12.2.     Representations and Warranties of Delaware Trustee.......................65

                                        ARTICLE XIII.
                                        MISCELLANEOUS

Section 13.1.     Notices..................................................................66

Section 13.2.     Governing Law............................................................68

Section 13.3.     Submission to Jurisdiction...............................................68

Section 13.4.     Intention of the Parties.................................................69

Section 13.5.     Headings.................................................................69

Section 13.6.     Successors and Assigns...................................................69

Section 13.7.     Partial Enforceability...................................................69

Section 13.8.     Counterparts.............................................................69
</TABLE>

                                      -iii-
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

ANNEXES AND EXHIBITS

ANNEX I           Terms of Capital Securities and Common Securities

EXHIBIT A-1       Form of Global Capital Security Certificate
EXHIBIT A-2       Form of Common Security Certificate
EXHIBIT B         Form of Transferee Certificate to be Executed by Transferees
                  Other than QIBs
EXHIBIT C         Form of Transferor Certificate to be Executed for QIBs
EXHIBIT D         Form of Officer's Financial Certificate
EXHIBIT E         Form of Regulation S Global Preferred Security Transferee
                  Certificate
EXHIBIT F         Form of Rule 144A Global Security Transferee Certificate

                                      -iv-
<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                            CRM USA Holdings Trust I

                                November 14, 2006

         AMENDED AND RESTATED DECLARATION OF TRUST (this "Declaration"), dated
and effective as of November 14, 2006, by the Trustees (as defined herein), the
Administrators (as defined herein), the Sponsor (as defined herein) and the
Parent Guarantor (as defined herein).

         WHEREAS, the Delaware Trustee and the Sponsor established CRM USA
Holdings Trust I (the "Trust"), a statutory trust under the Statutory Trust Act
(as defined herein), pursuant to a Declaration of Trust, dated as of November 6,
2006, (the "Original Declaration"), and a Certificate of Trust filed with the
Secretary of State of the State of Delaware on November 6, 2006, 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, the Parent Guarantor owns one hundred percent (100%) of the
outstanding shares of capital stock of the Sponsor, and will substantially
benefit from the amendment of the Original Declaration as provided 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, the Sponsor, and the
Parent Guarantor 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, subject to the
provisions of this Declaration, and, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties, intending to be legally bound hereby, amend
and restate in its entirety the Original Declaration and agree as follows:

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

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

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

<PAGE>

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

             (c)  all references to "the Declaration" or "this Declaration" are
to this Declaration and each Annex and Exhibit hereto, 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 Louis J. Viglotti and James J. Scardino,
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.

         "Agent Member" has the meaning set forth in Section 6.4(e).

         "Applicable Accounting Principles" means accounting practices
prescribed or permitted by the National Association of Insurance Commissioners,
if then applicable to the Sponsor or its subsidiaries, and/or the applicable
insurance department or regulator of the jurisdiction of domicile of such
Regulated Insurance Company, and in each case, applied consistently throughout
the periods involved.

         "Applicable Depositary Procedures" means, with respect to any transfer
or transaction involving a Book-Entry Capital Security, the rules and procedures
of the Depositary for such Book-Entry Capital Security, in each case to the
extent applicable to such transaction and as in effect from time to time.

         "Applicable Insurance Regulatory Authority" means, when used with
respect to any Regulated Insurance Company, (x) the insurance department or
similar administrative authority or agency located in each state or jurisdiction
(foreign or domestic) in which such Regulated Insurance Company is domiciled or
(y) to the extent such regulatory jurisdiction has authority over such Regulated
Insurance Company, the insurance department, authority or agency in each state
or jurisdiction (foreign or domestic) in which such Regulated Insurance Company
is licensed, and shall include any Federal or national insurance regulatory
department, authority or agency that may be created and that asserts insurance
regulatory jurisdiction over such Regulated Insurance Company.

                                       -2-
<PAGE>

         "Authorized Officer" of a Person means the Chairman of the Board, the
President, the Chief Financial Officer, the Treasurer or the Secretary of the
Company.

         "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.

         "Book-Entry Capital Security" means a Capital Security, the ownership
and transfers of which shall be made through book entries by a Depositary.

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

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

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

         "Capital Securities Purchase Agreement" means, collectively, the
Capital Securities Purchase Agreement dated as of November 14, 2006 among the
Trust, the Sponsor and Alesco Preferred Funding XII, Ltd., the Capital
Securities Purchase Agreement dated as of November 14, 2006 among the Trust, the
Sponsor and Alesco Preferred Funding XI, Ltd. and the Capital Securities
Purchase Agreement, dated as of November 14, 2006 among the Trust, the Sponsor
and Bear, Stearns & Co. Inc.

         "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.

                                       -3-
<PAGE>

         "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:
Corporate Trust, CRM USA Holdings Trust I. Initially, all notices and
correspondence shall be addressed to Mudassir Mohamed (telephone 713-216-2626).

         "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; or (b) any Holder of Securities.

         "Debenture Issuer" means CRM USA Holdings, Inc., incorporated in
Delaware, in its capacity as issuer of the Debentures under the Indenture and
any permitted successor under the Indenture.

         "Debenture Trustee" means The Bank of New York Trust Company, 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
December 15, 2036 to be issued by the Debenture Issuer under the Indenture.

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

                                       -4-
<PAGE>

         "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.

         "Depositary" means an organization registered as a clearing agency
under the Exchange Act that is designated as Depositary by the Sponsor or any
successor thereto. DTC will be the initial Depositary.

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

         "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(d)
of Annex I.

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

         "DTC" means The Depository Trust Company or any successor thereto.

         "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(d) 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.

         "Global Capital Security" means each of a Global Regulation S Capital
Security and a Global Rule 144A Capital Security.

         "Guarantee" means, collectively, (i) the Guarantee Agreement, dated as
of November 14, 2006, by and between the Sponsor (the "Guarantor") and The Bank
of New York Trust Company, National Association and (ii) the Parent Guarantee
Agreement.

                                       -5-
<PAGE>

         "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 November 14, 2006, among
the Debenture Issuer, the Parent Guarantor, 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.

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

         "Insurance Business" means one or more aspects of the business of
selling, issuing or underwriting insurance or reinsurance.

         "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.

                                       -6-
<PAGE>

         "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.

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

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

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

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

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

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

         (a) Capital Securities theretofore canceled by the Trustee or delivered
to the Trustee for cancellation;

         (b) Capital Securities for which payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee in trust for
the Holders of such Capital Securities; provided, that if such Capital
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Declaration; and

         (c) Capital Securities that have been paid or in exchange for or in
lieu of which other Capital Securities have been executed and delivered pursuant
to the provisions of this Agreement, unless proof satisfactory to the Trustee is
presented that any such Capital Securities are held by Holders in whose hands
such Capital Securities are valid, legal and binding obligations of the Trust;
provided, that in determining whether the Holders of the requisite liquidation
amount of the Outstanding Capital Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Capital
Securities owned by the Sponsor, any Trustee or any Affiliate of the Sponsor or
of any Trustee shall be disregarded and deemed not to be Outstanding, except
that (i) in determining whether any Trustee shall be protected in relying upon
any such request, demand, authorization, direction, notice, consent or waiver,
only Capital Securities that such Trustee knows to be so owned shall be so
disregarded and (ii) the foregoing shall not apply at any time when all of the
Outstanding Capital Securities are owned by the Sponsor, one or more of the
Trustees and/or any such Affiliate. Capital Securities so owned that have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Institutional Trustee the pledgee's right so to act
with respect to such Capital Securities and that the pledgee is not the Sponsor,
any Trustee or any Affiliate of the Sponsor or of any Trustee.

                                       -7-
<PAGE>

         "Owner" means each Person who is the beneficial owner of Book-Entry
Capital Securities as reflected in the records of the Depositary or, if a
Depositary Participant is not the beneficial owner, then the beneficial owner as
reflected in the records of the Depositary Participant.

         "Parent Guarantee Agreement" means the Parent Guarantee Agreement,
dated as of November 14, 2006, executed by CRM Holdings, Ltd. (the "Parent
Guarantor") and The Bank of New York Trust Company, National Association.

         "Parent Guarantor" means CRM Holdings, Ltd., an exempted holding
company organized under the laws of Bermuda.

         "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 as of
November 14, 2006, by and among the Sponsor, the Parent Guarantor, Placement
Agent and the Trust relating to the offering and sale of Capital Securities.

         "Placement Agent" mean Cohen & Company.

         "Plan" has the meaning set forth in Section 6.4(h)(ix).

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

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

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

         "QIB" or "Qualified Institutional Buyer" means a "qualified
institutional buyer" as defined in Rule 144A under the Securities Act of 1933,
as amended.

         "QIB/QP" mean any Person that, at the time of its acquisition,
purported acquisition or proposed acquisition of Capital Securities, is both a
QIB and a QP.

         "QP" or "Qualified Purchaser" means (i) a "qualified purchaser" within
the meaning of Section 3(c)(7) of the Investment Company Act or (ii) a company
beneficially owned exclusively by one or more "qualified purchasers" and/or
"knowledgeable employees" with respect to the Sponsor within the meaning of Rule
3c-5 under the Investment Company Act.

                                       -8-
<PAGE>

         "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.

         "Regulated Insurance Company" means any subsidiary of the Sponsor,
whether now owned or hereafter acquired, that is authorized or admitted to carry
on or transact Insurance Business in any jurisdiction (foreign or domestic) and
is regulated by any Applicable Insurance Regulatory Authority.

         "Regulation S Capital Security" means a certificate evidencing
ownership of Capital Securities, substantially in the form attached as Exhibit
A-2, issued to a Person pursuant to the exemption provided by Regulation S.

         "Regulation S Global Capital Security" means a Regulation S Capital
Security Certificate evidencing ownership of Book-Entry Capital Securities.

         "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.

                                       -9-
<PAGE>

         "Rule 144A Capital Security" means a certificate evidencing ownership
of Capital Securities, substantially in the form attached as Exhibit C, issued
to a Person pursuant to the exemption provided by Rule 144A.

         "Rule 144A Global Capital Security" means a Rule 144A Capital
Securities Certificate evidencing ownership of Book-Entry Capital Securities.

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

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

         "SEC" means the Securities and Exchange Commission.

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

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

         "Securities Register" has the meaning specified in Section 8.1(d).

         "Significant Subsidiary(ies) has the meaning defined in Section 1-02(w)
of Regulation S-X of the Securities Act.

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

         "Sponsor" means CRM USA Holdings, Inc., a corporation that is a U.S.
Person incorporated in Delaware, 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 Financial Statements" means all financial statements of the
Sponsor's subsidiary insurance companies for each relevant period, prepared in
accordance with Applicable Accounting Principles.

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

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

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

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

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

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

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

                                      -10-
<PAGE>

         "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" has the meaning set forth in the Indenture.

         "U.S. Resident" has the meaning set forth in the Indenture.

         "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 "CRM USA Holdings 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 112 Delafield Street, Poughkeepsie, NY 12601. 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.

                                      -11-
<PAGE>

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;

                                      -12-
<PAGE>

                          (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 subscription agreement between the
                  Trust and the Sponsor, a Common Securities subscription
                  agreement between the Trust and the Sponsor and the Capital
                  Securities Purchase Agreement;

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

                          (E)  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, Calculation
                  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;

                                      -13-
<PAGE>

                          (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)  so long as the Institutional Trustee for the
                  benefit of the Trust is the holder of the Debentures, to cause
                  any required Statutory Financial Statements to be delivered to
                  the Institutional Trustee and to each Holder and Cohen &
                  Company promptly following the filing of each such document
                  with the relevant Applicable Insurance Regulatory Authority.
                  The delivery requirement set forth in the preceding sentence
                  may be satisfied by submitting the required Statutory
                  Financial Statements pursuant to Section 10.2(b) hereof.

                          (O)  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;

                          (P)  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;

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

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

                          (S)  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;

                                      -14-
<PAGE>

                          (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
                  Section 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.

                                      -15-
<PAGE>

             (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 jurisdictions 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 jurisdictions in connection with the sale of the
             Capital Securities; and

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

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

                                      -16-
<PAGE>

             (e)  All reasonable 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 Institutional Trustee and Administrators shall
not permit the Trust 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

                                      -17-
<PAGE>

             (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 transfer 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 Section 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.

                                      -18-
<PAGE>

             (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.

                                      -19-
<PAGE>

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;

                                      -20-
<PAGE>

                  (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 or
             bad faith 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

                                      -21-
<PAGE>

(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, willful misconduct or bad
faith;

             (c)  any direction or act of the Sponsor or the Administrators
contemplated by this Declaration shall be sufficiently evidenced by an Officer's
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 Officer's 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 bad faith or negligence on the part of, or for
the supervision of, any such agent or attorney appointed with due care by it
hereunder;

                                      -22-
<PAGE>

             (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.

                                      -23-
<PAGE>

         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
Section 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 Trust Property 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 shall not, while any of the
                         -------
Capital Securities remain outstanding, consolidate, amalgamate, merge with or
into, or be replaced by, or convey, transfer or lease all or substantially all
of its properties and assets, 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;

                                      -24-
<PAGE>

                  (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 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;

                                      -25-
<PAGE>

                  (viii)  the Sponsor (including any successor under the
             conditions set forth in Article XI of the Indenture) and the Parent
             Guarantor guarantee the obligations of such Successor Entity under
             the Successor Securities to the same extent provided by the
             Guarantee, the Parent Guarantee Agreement, the Debentures and this
             Declaration;

                  (ix)    prior to such merger, consolidation, amalgamation,
             replacement, conveyance, transfer or lease, the Institutional
             Trustee shall have received an Officer's 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; and

                  (x)     in the case of a sale, transfer, conveyance or lease
             of more than 51% of the Sponsor's or a Significant Subsidiary's
             right to renew insurance policies issued by a Significant
             Subsidiary, such sale, transfer, conveyance or lease shall be made
             only with the consent of the holders of a majority in aggregate
             principal amount of the Capital Securities at the time outstanding.

             (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 at least equal to 3% of the capital of the Trust, at the
same time as the Capital Securities are sold.

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

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

                                      -26-
<PAGE>

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

             (c)  to negotiate the terms of and/or execute and deliver on behalf
of the Trust, the 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 Holder of a Majority in liquidation
amount of the Common Securities voting as a class at a meeting of the Holder of
the Common Securities; provided, however, that there shall be a Delaware Trustee
if required by Section 4.2; and there shall always be one Trustee who shall be
the Institutional Trustee, and such Trustee may also serve as Delaware Trustee
if it meets the applicable requirements, in which case Section 2.11 shall have
no application to such entity in its capacity as Institutional Trustee.

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

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

             (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 Section 3807 of the
Statutory Trust Act.

         SECTION 4.3. Institutional Trustee; Eligibility.

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

                  (i)     not be an Affiliate of the Sponsor;

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

                                      -27-
<PAGE>

                  (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 Section 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 The Bank of New
York Trust Company, 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 The Bank of New York (Delaware).

         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.

                                      -28-
<PAGE>

             (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").

                                      -29-
<PAGE>

             (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.

                                      -30-
<PAGE>

         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).

                                      -31-
<PAGE>

                                   ARTICLE V.
                                  DISTRIBUTIONS

         SECTION 5.1.    Distributions.
                         -------------

             (a)  Holders shall receive Distributions in accordance with the
applicable terms of the relevant Holder's Securities. Distributions shall be
made on the Capital Securities and the Common Securities in accordance with the
preferences set forth in their respective terms. If and to the extent that the
Debenture Issuer makes a payment of interest (including any Additional Interest
or Deferred Interest) 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 taxes, as determined by
the Administrators in a written notice to the Institutional Trustee.

             (b)  As a condition to the payment of any principal of or interest
on the Securities without the imposition of withholding tax, the Administrators
shall require the previous delivery of properly completed and signed applicable
U.S. federal income tax certifications (generally, an Internal Revenue Service
Form W-9 (or applicable successor form) in the case of a person that is a
"United States person" within the meaning of Section 7701(a)(30) of the Code or
an Internal Revenue Service Form W-8BEN (or applicable successor form) in the
case of a person that is not a "United States person" within the meaning of
Section 7701(a)(30) of the Code) and any other certification acceptable to it to
enable the Institutional Trustee or any Paying Agent to determine their
respective duties and liabilities with respect to any taxes or other charges
that they may be required to pay, deduct or withhold in respect of such
Securities.

                                  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.

                                      -32-
<PAGE>

The Capital Securities rank pari passu and payment thereon shall be made Pro
Rata with the Common Securities except that, where an Event of Default has
occurred and is continuing, the rights of Holders of the Common Securities to
payment in respect of Distributions and payments upon liquidation, redemption
and otherwise are subordinated to the rights to payment of the Holders of the
Capital Securities.

             (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.

             (f)  The Capital Securities issued to Persons that are both (x) QPs
and (y) QIBs pursuant to a private placement exemption from the Securities Act
may be, except as provided in Section 6.4, Book-Entry Capital Securities issued
in the form of one or more Rule 144A Global Capital Securities registered in the
name of the Depositary, or its nominee and deposited with the Depositary or a
custodian for the Depositary for credit by the Depositary to the respective
accounts of the Depositary Participants thereof (or such other accounts as they
may direct), duly executed by the Trust and authenticated by the Institutional
Trustee as herein provided. The aggregate principal amount of the Rule 144A
Global Capital Securities may from time to time be increased or decreased by
adjustments made on the records of the Depositary, its custodian or its nominee,
as the case may be, as hereinafter provided.

                                      -33-
<PAGE>

             (g)  The Capital Securities offered and sold to Persons that are
both non-U.S. Persons and non-U.S. Residents in offshore transactions in
reliance on Regulation S may be, except as provided in Section 6.4, Book-Entry
Capital Securities issued in the form of one or more Regulation S Global Capital
Securities, registered in the name of the Depositary, or its nominee and
deposited with the Depositary or a custodian for the Depositary for credit by
the Depositary to the respective accounts of the Depositary Participants thereof
(or such other accounts as they may direct), duly executed by the Trust and
authenticated by the Institutional Trustee as herein provided. The aggregate
principal amount of the Regulation S Global Capital Securities may from time to
time be increased or decreased by adjustments made on the records of the
Depositary, its custodian or its nominee, as the case may be, as hereinafter
provided.

             (h)  The Capital Securities, including the Certificates of
Authentication, shall be in substantially the forms required by this Article VI
and Exhibit A-1 and A-2, with such appropriate insertions and variations as are
required or permitted by this Declaration, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon,
as may be consistent herewith, determined by Authorized Officers of the Sponsor
as evidenced by their execution of such Capital Securities.

             (i)  The Capital Securities issued to a Person other than (i)
QIB/QP or (ii) Persons that are both non-U.S. Persons and non-U.S. Residents in
offshore transactions in reliance on Regulation S shall be issued in the form of
Definitive Capital Securities Certificates.

         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.

                                      -34-
<PAGE>

         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 book-entry form, registered in the name of Cede & Co., as nominee
on behalf of The Depository Trust Company, without coupons, and held by the
Institutional Trustee as custodian for the Depository Trust Company.

         SECTION 6.4.    Book-Entry Capital Securities.
                         -----------------------------

             (a)  A Global Capital Security may be exchanged, in whole or in
part, for Definitive Capital Securities Certificates registered in the names of
the Owners only if such exchange complies with this Section 6.4 and (i) the
Depositary advises the Administrators and the Institutional Trustee in writing
that the Depositary is no longer willing or able properly to discharge its
responsibilities with respect to the Global Capital Security, and no qualified
successor is appointed by the Administrators within ninety (90) days of receipt
of such notice, (ii) the Depositary ceases to be a clearing agency registered
under the Exchange Act and the Administrators fail to appoint a qualified
successor within ninety (90) days of obtaining knowledge of such event, (iii)
the Administrators at their option advise the Institutional Trustee in writing
that the Trust elects to terminate the book-entry system through the Depositary
or (iv) an Indenture Event of Default has occurred and is continuing. Upon the
occurrence of any event specified in clause (i), (ii), (iii) or (iv) above, the
Administrators shall notify the Depositary and instruct the Depositary to notify
all Owners of Book-Entry Capital Securities, the Delaware Trustee and the
Institutional Trustee of the occurrence of such event and of the availability of
the Definitive Capital Securities Certificates to Owners of the Capital
Securities requesting the same. Upon the issuance of Definitive Capital
Securities Certificates, the Trustees shall recognize the Holders of the
Definitive Capital Securities Certificates as Holders.

                                      -35-
<PAGE>

Notwithstanding the foregoing, if an Owner of a beneficial interest in a Global
Capital Security wishes at any time to transfer an interest in such Global
Capital Security to a Person other than a QIB/QP, such transfer shall be
effected, subject to the Applicable Depositary Procedures, in accordance with
the provisions of this Section 6.4 and Section 8.1, and the transferee shall
receive a Definitive Capital Securities Certificate in connection with such
transfer. A holder of a Definitive Capital Securities Certificate that is a
QIB/QP may, upon request and in accordance with the provisions of this Section
6.4 and Section 8.1, exchange such Definitive Capital Securities Certificate for
a beneficial interest in a Global Capital Security.

             (b)  Notwithstanding any provision to the contrary herein, so long
as a Global Capital Security remains Outstanding and is held by or on behalf of
the Depositary, transfers of a Global Capital Security or any interest therein,
in whole or in part, shall only be made in accordance with this Article VI.

                  (i)     Transfers, Exchanges and Cancellations Generally.
             If (A) any Global Capital Security is to be exchanged or
             transferred for Definitive Capital Securities Certificates or
             canceled in part, or (B) any Definitive Capital Securities
             Certificate is to be exchanged in whole or in part for any Global
             Capital Security, then (i) such Global Capital Security, in the
             case of clause (A), or such Definitive Capital Securities
             Certificate, in the case of clause (B), shall be so surrendered for
             exchange, transfer or cancellation as provided in this Article VI,
             (ii) the aggregate liquidation amount represented by such Global
             Capital Security shall be reduced, subject to Section 6.4, or
             increased by an amount equal to (x) the liquidation amount
             represented by that portion of the Global Capital Security to be so
             exchanged, transferred or canceled, or (y) the Liquidation Amount
             represented by such Definitive Capital Securities Certificates to
             be so exchanged for a beneficial interest in any Global Capital
             Security, as the case may be, by means of an appropriate adjustment
             made on the records of the Registrar, whereupon the Institutional
             Trustee, in accordance with the Applicable Depositary Procedures,
             shall instruct the Depositary or its authorized representative to
             make a corresponding adjustment to its records and (iii) such
             transaction shall be subject to the additional provisions set forth
             herein. Upon any such surrender to the Administrators or the
             Registrar of any Global Capital Security(ies) by the Depositary,
             accompanied by registration instructions, the Administrators, or
             any one of them, shall execute the Definitive Capital Securities
             Certificates, and the Institutional Trustee shall authenticate and
             deliver any Definitive Capital Securities Certificates issuable in
             exchange for such Global Capital Security(ies) (or any portion
             thereof), in accordance with the instructions of the Depositary.
             None of the Administrators, Registrar nor the Institutional Trustee
             shall be liable for any delay in delivery of such instructions and
             may conclusively rely on, and shall be fully protected in relying
             on, such instructions.

                  (ii)    Rule 144A Global Capital Security to Regulation S
             Global Capital Security. If an Owner of a beneficial interest in a
             Rule 144A Global Capital Security deposited with the Depositary
             wishes at any time to exchange its interest in such Rule 144A
             Global Capital Security for an interest in the corresponding
             Regulation S Global Capital Security, or to transfer its interest
             in such Rule 144A Global Capital Security to a Person who wishes to
             take delivery thereof in the form of an interest in the
             corresponding Regulation S Global Capital Security,

                                      -36-
<PAGE>

             such Owner, provided such Owner or, in the case of a transfer to
             another Person, such Person is not a U.S. Person or a U.S.
             Resident, may, subject to the immediately succeeding sentence and
             the rules and procedures of the Depositary, exchange or transfer or
             cause the exchange or transfer of such interest for an equivalent
             beneficial interest in the Regulation S Global Capital Security.
             Upon receipt by the Institutional Trustee, as Registrar, of (A)
             instructions given in accordance with the Depositary's procedures
             from an Agent Member (as hereinafter defined) directing the
             Institutional Trustee to cause to be credited a beneficial interest
             in the Regulation S Global Capital Security in an amount equal to
             the beneficial interest in the Rule 144A Global Capital Security to
             be exchanged or transferred, but not less than the minimum
             denomination applicable to Securities held through Regulation S
             Global Capital Securities, (B) a written order given in accordance
             with the Depositary's procedures containing information regarding
             the participant account of the Depositary and, in the case of a
             transfer or exchange pursuant to and in accordance with Regulation
             S, the account to be credited with such increase and (C) a
             certificate in the form of Exhibt E attached hereto, given by the
             Owner of such beneficial interest (in the case of an exchange) or
             the transferee of such beneficial interest (in the case of a
             transfer) stating that the exchange or transfer of such interest
             has been made in compliance with the transfer restrictions
             applicable to the Global Capital Securities, including in
             accordance with Regulation S, the Institutional Trustee, as
             Registrar, shall instruct the Depositary to reduce the principal
             amount of the Rule 144A Global Capital Security and to increase the
             principal amount of the Regulation S Global Capital Security by the
             aggregate principal amount of the beneficial interest in the Rule
             144A Global Capital Security to be exchanged or transferred, and to
             credit or cause to be credited to the account of the Person
             specified in such instructions a beneficial interest in the
             Regulation S Global Capital Security equal to the reduction in the
             principal amount of the Rule 144A Global Capital Security.

                  (iii)   Regulation S Global Capital Security to Rule 144A
             Global Capital Security. If an Owner of a beneficial interest in a
             Regulation S Global Capital Security deposited with the Depositary
             wishes at any time to exchange its interest in such Regulation S
             Global Capital Security for an interest in a corresponding Rule
             144A Global Capital Security or to transfer its interest in such
             Regulation S Global Capital Security to a Person who wishes to take
             delivery thereof in the form of an interest in the corresponding
             Rule 144A Global Capital Security, such Owner may, subject to the
             immediately succeeding sentence and the rules and procedures of the
             applicable Depositary, as the case may be, cause the exchange or
             transfer of such interest for an equivalent beneficial interest in
             the Rule 144A Global Capital Security. To the extent that the
             Institutional Trustee, as Registrar, has received (A) instructions
             from the applicable Depositary, as the case may be, directing the
             Institutional Trustee, as Registrar, to cause to be credited a
             beneficial interest in the Rule 144A Global Capital Security equal
             to the beneficial interest in the Regulation S Global Capital
             Security to be exchanged or transferred but not less than the
             minimum denomination applicable to Securities held through Rule
             144A Global Capital Securities, such instructions to contain
             information

                                      -37-
<PAGE>

             regarding the participant account with the Depositary to be
             credited with such increase, and (B) a certificate in the form of
             Exhibit F attached hereto, given by the Owner of such beneficial
             interest (in the case of an exchange) or the transferee of such
             beneficial interest (in the case of a transfer) stating that the
             Person acquiring such interest in the Rule 144A Global Capital
             Security is a QIB/QP and is obtaining such beneficial interest in a
             transaction meeting the requirements of Rule 144A and in accordance
             with any applicable securities laws of any state of the U.S. or any
             other relevant jurisdiction, or that, in the case of an exchange,
             the Owner is a QIB/QP, then the Institutional Trustee, as
             Registrar, will instruct the Depositary to reduce the Regulation S
             Global Capital Security by the aggregate principal amount of the
             beneficial interest in the Regulation S Global Capital Security to
             be transferred or exchanged, and the Institutional Trustee, as
             Registrar, shall instruct the Depositary, concurrently with such
             reduction, to credit or cause to be credited to the account of the
             Person specified in such instructions a beneficial interest in the
             Rule 144A Global Capital Security equal to the reduction in the
             principal amount of the Regulation S Global Capital Security.

                  (iv)    Other Exchanges.

                          (A)  Notwithstanding the foregoing, if an Owner of a
                  beneficial interest in a Global Capital Security wishes at any
                  time to transfer an interest in such Global Capital Security
                  to a Person other than a QIB/QP or a Person that is not a U.S.
                  Person or U.S. Resident pursuant to Regulation S, such
                  transfer shall be effected, subject to the Applicable
                  Depositary Procedures, in accordance with the provisions of
                  this Article VI and the transferee shall receive a definitive,
                  physical Capital Securities Certificate in connection with
                  such transfer upon delivery of a certificate in the form of
                  Exhibit B or Exhibit C, as applicable, attached hereto to the
                  Institutional Trustee. A Holder of a definitive, physical
                  Capital Securities Certificate that is a QIB/QP or that is not
                  a U.S. Person or U.S. Resident pursuant to Regulation S may,
                  upon request, and in accordance with the provisions of this
                  Article V, exchange such definitive, physical Capital
                  Securities Certificate for a beneficial interest in a Global
                  Capital Security.

                          (B)  In the event that a Global Capital Security is
                  exchanged for Capital Securities Certificate(s) in definitive,
                  physical registered form without interest coupons, such
                  Capital Securities Certificate(s) may be exchanged for one
                  another only in accordance with such procedures and
                  restrictions as are substantially consistent with the
                  provisions above (including certification requirements
                  intended to ensure that such transfers comply with Rule 144A
                  or another exemption from the registration requirements of the
                  Securities Act, or are to non-U.S. Persons and non-U.S.
                  Residents, or otherwise comply with Regulation S, as the case
                  may be) and as may be from time to time adopted by the
                  Administrators and the Institutional Trustee.

                                      -38-
<PAGE>

                          (C)  Subject to compliance with the transfer
                  restrictions contained in herein, transfers of interests in a
                  Global Capital Security may be made (x) by book-entry transfer
                  of beneficial interests within the relevant Depositary or
                  (y)(i) in the case of transfers of interests in a Rule 144A
                  Global Capital Security or in a Regulation S Global Capital
                  Security, in accordance with this Article V; provided, that,
                  in the case of any such transfer of interests pursuant to
                  clause (x) or (y) above, such transfer is made in accordance
                  with subclause (D) below.

                          (D)  Restrictions on Transfers.

                               (1)  Transfers of interests in a Regulation S
Global Capital Security to a U.S. Person or a U.S. Resident that is a QIB/QP
shall be made by delivery of an interest in the corresponding Rule 144A Global
Capital Security and shall be limited to transfers made pursuant to this Article
VI. Beneficial interests in a Rule 144A Global Capital Security may only be held
through the applicable Depositary.

                               (2)  Any transfer of an interest in a Security to
a U.S. Person or a U.S. Resident that is not a QIB/QP and/or a institutional
"accredited investor" within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act shall be null and void ab initio and shall not be given
effect for any purpose hereunder, and the Institutional Trustee shall hold any
funds conveyed by the intended transferee of such interest in such Security in
trust for the transferor and shall promptly reconvey such funds to such Person
in accordance with the written instructions thereof delivered to the
Institutional Trustee at its address listed herein;

                               (3)  Any transfer of an interest in a Global
Capital Security to a U.S. Person or a U.S. Resident that is not a QIB/QP, but
who is an institutional "accredited investor", may and shall be made by delivery
of an interest in definitive, physical Capital Securities Certificate(s) and
shall be limited to transfers made pursuant to this Article VI.

                               (4)  Transfers of interests in a Rule 144A Global
Capital Security to a Person that is not a U.S. Person or U.S. Resident shall be
made by delivery of an interest in the corresponding Regulation S Global Capital
Security and shall be limited to transfers made pursuant to this Article V.
Beneficial interests in a Regulation S Global Capital Security may only be held
through the applicable Depositary.

             (c)  Every Definitive Capital Securities Certificate executed and
delivered upon registration or transfer of, or in exchange for or in lieu of, a
Global Capital Security or any portion thereof shall be executed and delivered
in the form of, and shall be, a Global Capital Security, unless such Definitive
Capital Securities Certificate is registered in the name of a Person other than
the Depositary for such Global Capital Security or a nominee thereof.

             (d)  Execution of Global Capital Securities Generally. The
Administrators shall execute and the Institutional Trustee shall, in accordance
with this Section 6.4(d), authenticate and deliver initially one or more Global
Capital Securities evidencing the Securities that shall be (i) registered in the
name of the Depositary for such Global Capital Security or Global Capital
Securities or its nominee and (ii) delivered by the Institutional Trustee to
such Depositary or pursuant to such Depositary's instructions or held by the
Institutional Trustee, as custodian for the Depositary.

                                      -39-
<PAGE>

             (e)  Rights of Agent Members in Global Capital Securities
Generally. The Depositary or its nominee, as registered Owner of a Global
Capital Security, shall be the Holder of such Global Capital Security for all
purposes under this Declaration and the Global Capital Security, and Owners with
respect to a Global Capital Security shall hold such interests pursuant to the
Applicable Depositary Procedures. The Registrar, the Administrators and the
Institutional Trustee shall be entitled to deal with the Depositary for all
purposes of this Declaration relating to the Global Capital Securities
(including the payment of the Liquidation Amount of and Distributions on the
Book-Entry Capital Securities represented thereby and the giving of instructions
or directions by Owners of Book-Entry Capital Securities represented thereby and
the giving of notices) as the sole Holder of the Book-Entry Capital Securities
represented thereby and shall have no obligations to the Owners thereof. None of
the Administrators, the Institutional Trustee nor the Registrar shall have any
liability in respect of any transfers effected by the Depositary. Members of, or
participants in, the Depositary ("Agent Members") shall have no rights under
this Declaration with respect to any interest in a Global Capital Security held
on their behalf by the Depositary or under the Global Capital Securities, and
the Depositary may be treated by the Administrators, the Institutional Trustee
and any agent of the Depositary, the Administrators, or the Institutional
Trustee as the absolute Owner of such Global Capital Security for all purposes
whatsoever (except to the extent otherwise provided herein). Notwithstanding the
foregoing, nothing herein shall prevent the Administrators, the Institutional
Trustee or any agent of the Depositary, the Administrators, or the Institutional
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Agent Members, the operation of customary practices governing the
exercise of the rights of a Holder of any Capital Security.

             (f)  Rights of Owners of the Book-Entry Capital Securities
Generally. The rights of the Owners of beneficial interests in the Book-Entry
Capital Securities shall be exercised only through the Depositary and shall be
limited to those established by law, the Applicable Depositary Procedures and
agreements between such Owners and the Depositary and/or the Depositary
Participants. No Owner of any beneficial interest in any the Book-Entry Capital
Security held on its behalf by a Depositary shall have any rights under this
Declaration with respect to such Book-Entry Capital Security, and such
Depositary may be treated by the Administrators and the Institutional Trustee
and any agent of the Sponsor or the Administrators and the Institutional Trustee
as the Owner of such Book-Entry Capital Security for all purposes whatsoever.
None of the Sponsor, Administrators, the Institutional Trustee nor any agent of
the Sponsor, the Administrators nor the Institutional Trustee will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Book-Entry
Capital Security or maintaining, supervising or reviewing any records relating
to such beneficial ownership interests. Notwithstanding the foregoing, nothing
herein shall prevent the Administrators and the Institutional Trustee or any
agent of the Sponsor or the Administrators and the Institutional Trustee from
giving effect to any written certification, proxy or other authorization
furnished by a Depositary or impair, as between a Depositary and such Owners of
beneficial interests in the Book-Entry Capital Securities, the operation of
customary practices governing the exercise of the rights of the Depositary (or
its nominee) as Holder of any Capital Security.

                                      -40-
<PAGE>

Notwithstanding anything to the contrary herein, solely for the purpose of
determining whether the Holders of the requisite amount of Capital Securities
have voted on any matter provided for in this Declaration, to the extent that
Capital Securities are represented by a Global Capital Security, the Trustees
may conclusively rely on, and shall be fully protected in relying on, any
written instrument (including a proxy) delivered to the Institutional Trustee by
the Depositary setting forth the Owners' votes or assigning the right to vote on
any matter to any other Persons either in whole or in part. To the extent that
Capital Securities are represented by a Global Capital Security, the Depositary
will make book-entry transfers among the Depositary Participants and receive and
transmit payments on the Capital Securities that are represented by a Global
Capital Security to such Depositary Participants, and none of the Sponsor, the
Administrators nor the Institutional Trustee shall have any responsibility or
obligation with respect thereto.

             (g)  To the extent that a notice or other communication to the
Holders is required under this Declaration, for so long as Capital Securities
are represented by a Global Capital Security, the Administrators and the
Institutional Trustee shall give all such notices and communications to the
Depositary, and shall have no obligations to the Owners.

             (h)  Each Owner of a beneficial interest in a Rule 144A Global
Capital Security will be deemed to have represented and agreed with the
Administrators and the Institutional Trustee as follows (except that in a
transfer of a beneficial interest in a Regulation S Global Capital Security to a
transferee that takes delivery in the form of an interest in a Rule 144A Global
Capital Security, the transferee will be required to make the required
representations in a transfer certificate in the form set forth as Exhibit E):

                  (i)     The Owner is purchasing the Capital Security for its
             own account or one or more accounts with respect to which it
             exercises sole investment discretion, in each case in minimum
             denominations of $100,000 and integral multiples of $1,000 in
             excess thereof, and both it and each such account (if any) and (A)
             is a QIB/QP, (B) is not a dealer of the type described in paragraph
             (a)(1)(ii) of Rule 144A unless it owns and invests on a
             discretionary basis not less than $25,000,000 in securities of
             issuers that are not Affiliated to it, (C) is not a
             participant-directed employee plan, such as a 401(k) plan, or any
             other type of plan referred to in paragraph (a)(1)(i)(D) or
             (a)(1)(i)(E) of Rule 144A, or a trust fund referred to in paragraph
             (a)(1)(i)(F) of Rule 144A that holds the assets of such a plan,
             unless investment decisions with respect to the plan are made
             solely by the fiduciary, trustee or sponsor of such plan, (D) was
             not formed for the purpose of investing in the Trust (except where
             each beneficial Owner of the holder is a QP) and (E) shall provide
             written notice to any transferee that any transferee taking
             delivery of the Capital Security in the form of an interest in a
             Rule 144A Global Capital Security must satisfy the foregoing
             qualifications.

                  (ii)    The Owner agrees on its own behalf and on behalf of
             any account for which it is holding the Capital Security to offer,
             sell or otherwise transfer such Capital Security (or a beneficial
             interest therein) only (A) in the required minimum denomination,
             and (B)(1) in the U.S., only in the form of an interest in a Rule
             144A Global Capital Security to a QP that the Owner reasonably
             believes is a QIB, purchasing for its own account or one or more
             accounts, each of which

                                      -41-
<PAGE>

             is a QP that the Owner reasonably believes is a QIB, in accordance
             with Rule l44A, and none of which are (i) a dealer of the type
             described in paragraph (a)(1)(ii) of Rule 144A unless it owns and
             invests on a discretionary basis not less than $25,000,000 in
             securities of issuers that are not Affiliated to it, (ii) a
             participant-directed employee plan, such as a 401(k) plan, or any
             other type of plan referred to in paragraph (a)(1)(i)(D) or
             (a)(1)(i)(E) of Rule 144A, or a trust fund referred to in paragraph
             (a)(1)(i)(F) of Rule 144A that holds the assets of such a plan,
             unless investment decisions with respect to the plan are made
             solely by the fiduciary, trustee or sponsor of such plan or (iii)
             formed for the purpose of investing in the Trust (except where each
             beneficial Owner is a QP) or (2) outside the U.S. in the form of an
             interest in a Regulation S Global Capital Security to a Person that
             is neither a U.S. Person nor a U.S. Resident in an offshore
             transaction in accordance with Regulation S. The Owner understands
             and agrees that neither a U.S. Person nor a U.S. Resident may hold
             an interest in a Capital Security in the form of a Regulation S
             Global Capital Security at any time. The Owner agrees to provide
             notice of such transfer restrictions to any subsequent transferee.

                  (iii)   The Owner understands that the Trust is entitled to
             require any Holder of Capital Securities who is a U.S. Person or a
             U.S. Resident who is determined not to have been a QIB/QP at the
             time of acquisition of the Capital Security (or interest therein)
             to (A) if such Person is an institutional "accredited investor"
             within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
             Securities Act, receive definitive, physical Capital Securities or
             (B) sell such interest to a Person that is a QIB/QP or to a Person
             that is neither a U.S. Person nor a U.S. Resident in a transaction
             meeting the requirements of Regulation S.

                  (iv)    The Owner understands that the Capital Securities have
             not been approved or disapproved by the SEC or any other
             governmental authority or agency of any jurisdiction. Any
             representation to the contrary is a criminal offense.

                  (v)     The Owner agrees that no Capital Security (or any
             interest therein) may be sold, pledged or otherwise transferred in
             a denomination of less than $100,000 in aggregate liquidation
             amount and integral multiples of $1,000 in excess thereof.

                  (vi)    The Owner (A) has such knowledge and experience in
             financial and business matters that the Owner is capable of
             evaluating the merits and risks (including for tax, legal,
             regulatory, accounting and other financial purposes) of its
             prospective investment in the Capital Securities, (B) is
             financially able to bear such risk, (C) in making such investment
             is not relying on the advice or recommendations of the Sponsor, the
             Administrators and the Institutional Trustee or any of their
             respective Affiliates (or any representative of any of the
             foregoing), (D) has determined that an investment in the Capital
             Securities is suitable and appropriate for it, and (E) has had
             access to such financial and other information concerning the
             Sponsor, the Trust and the Capital Securities as it has deemed
             necessary to make its own independent decision to purchase such
             Capital Securities, including the opportunity, at a reasonable time
             prior to its purchase of such Capital Securities, to ask questions
             and receive answers concerning the Sponsor, the Trust and the terms
             and conditions of the offering of the Capital Securities.

                                      -42-
<PAGE>

                  (vii)   The Owner understands that there is no market for the
             Capital Securities and that no assurance can be given as to the
             liquidity of any trading market for the Capital Securities and that
             it is unlikely that a trading market for the Capital Securities
             will develop. Accordingly, the Owner must be prepared to hold the
             Capital Securities for an indefinite period of time or until their
             maturity.

                  (viii)  The Owner agrees that no sale, pledge or other
             transfer of a Capital Security (or any interest therein) may be
             made if such transfer would have the effect of requiring the
             Sponsor or the Trust to register as an investment company under the
             Investment Company Act.

                  (ix)    The Owner will be deemed to represent, warrant and
             covenant, for the duration that it holds an interest in such
             Capital Security, that either (A) it is not acquiring such Capital
             Securities with the assets of a Person who is or will be an
             employee benefit, individual retirement account or other Plan or
             arrangement (each, a "Plan") 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") or (B) its acquisition, holding and disposition of such
             Capital Securities, throughout the period that it holds such
             Capital Securities, will not result in a non-exempt prohibited
             transaction under Section 406 of ERISA or Section 4975 of the Code
             (or any substantially similar applicable law), because the
             acquisition, holding and disposition of such Capital Securities by
             the Owner is and will be eligible for relief under a prohibited
             transaction exemption, all of the conditions of which are and will
             be satisfied upon its acquisition of, and throughout the term that
             it holds, such Capital Securities. Each Owner of such Capital
             Securities will be deemed to represent, warrant and covenant that
             it will not sell, pledge or otherwise transfer such Capital
             Securities in violation of the foregoing. In addition, if the Owner
             is, or is acting on behalf of, a Plan, the fiduciaries of such Plan
             represent, warrant and covenant that they have been informed of and
             understand the Trust's and Sponsor's investment objectives,
             policies and strategies and that the decision to invest such Plan's
             assets in such Capital Securities was made with appropriate
             consideration of relevant investment factors with regard to such
             Plan and is consistent with the duties and responsibilities imposed
             upon fiduciaries with regard to their investment decisions under
             ERISA.

                  (x)     The Owner agrees that (A) any sale, pledge or other
             transfer of a Capital Security (or any interest therein) made in
             violation of the transfer restrictions contained in this
             Declaration, or made based upon any false or inaccurate
             representation made by the holder or a transferee to the Trust or
             Sponsor, will be void and of no force or effect and (B) none of the
             Sponsor, the Trust, the Administrators, the Institutional Trustee
             nor the Registrar has any obligation to recognize any sale, pledge
             or other transfer of a Capital Security (or any interest therein)
             made in violation of any such transfer restriction or made based
             upon any such false or inaccurate representation.

                                      -43-
<PAGE>

                  (xi)    The Owner is not a member of the public in the Cayman
             Islands.

                  (xii)   The Rule 144A Global Capital Securities will bear the
             applicable legends set forth herein.

                  (xiii)  The Owner has the power and authority to enter into
             each agreement required to be executed and delivered by or on
             behalf of the Owner in connection with its purchase of Capital
             Securities and to perform its obligations thereunder and consummate
             the transactions contemplated thereby, and the Person signing any
             such documents on behalf of the Owner has been duly authorized to
             execute and deliver such documents and each other document required
             to be executed and delivered by the Owner in connection with its
             purchase of Capital Securities. Such execution, delivery and
             compliance by the Owner does not conflict with, or constitute a
             default under, any instruments governing the holder, any applicable
             law, regulation or order, or any material agreement to which the
             Owner is a party or by which the Owner is bound.

                  (xiv)   If the Owner's permanent address is located in the
             U.S., the Owner was offered the Capital Securities in the state of
             such Owner's permanent address and intends that the securities law
             of that state govern the Owner's subscription for the Capital
             Securities.

                  (xv)    The Owner understands that the Trust may require
             certification acceptable to it (i) to permit the Trust to make
             payments to it without, or at a reduced rate of, withholding or
             (ii) to enable the Trust to qualify for a reduced rate of
             withholding in any jurisdiction from or through which the Trust
             receives payments on its assets. The Owner agrees to provide any
             such certification that is requested by the Trust.

                  (xvi)   The Owner acknowledges that the Trust, the Sponsor,
             the Administrators, the Institutional Trustee and others will rely
             upon the truth and accuracy of the foregoing acknowledgments,
             representations and agreements and agrees that, if any of the
             acknowledgments, representations or warranties made or deemed to
             have been made by it in connection with its purchase of the Capital
             Securities are no longer accurate, the Owner will promptly notify
             the Sponsor, the Administrators and the Institutional Trustee.

             (i)  Each Owner of a beneficial interest in a Regulation S Global
Capital Security shall be deemed to have represented and agreed with the Trust
as set forth in clauses (ii) through (xvi) of clause (h) above (except that in a
transfer of an interest in a Rule 144A Global Capital Security to a transferee
that takes delivery in the form of an interest in a Regulation S Global Capital
Security, the transferee will be required to make the required representations
in a transfer certificate in the form set forth as Exhibit F). Each Owner of a
beneficial interest in a Regulation S Global Capital Security will also be
deemed or required (as applicable) to represent, warrant and agree as follows:

                                      -44-
<PAGE>

                  (i)     The Owner is neither a U.S. Person nor a U.S. Resident
             purchasing for its own account or one or more accounts, each of
             which is neither a U.S. Person nor a U.S. Resident, and as to each
             of which the Owner exercises sole investment discretion, in an
             offshore transaction pursuant to Regulation S and is aware that the
             sale of the Capital Securities to it is being made in reliance on
             the exemption from registration provided by Regulation S.

                  (ii)    The Regulation S Global Capital Securities will bear
             the applicable legends set forth herein.

                  (iii)   The Owner understands and agrees that before a Capital
             Security in the form of an interest in a Regulation S Global
             Capital Security may be offered, sold, pledged or otherwise
             transferred to a transferee that takes delivery in the form of a
             Rule 144A Global Capital Security, the transferee shall be required
             to provide the Trustee with a transfer certificate in the form
             attached hereto as Exhibit F to the effect that the transferee is a
             QIB/QP which is acquiring the interest in the Capital Security in
             the form of a Rule 144A Global Capital Security in a transaction
             meeting the requirements of Rule 144A and in accordance with any
             applicable securities laws of any state of the U.S. or any other
             relevant jurisdiction.

             (j)  Notwithstanding anything contained in this Declaration to the
contrary, and to the maximum extent permitted under applicable law, neither the
Institutional Trustee nor the Registrar (nor any other Transfer Agent) shall be
responsible or liable for compliance with applicable federal or state securities
law (including the Securities Act, Rule 144A or Regulation S promulgated
thereunder), the Investment Company Act, ERISA or the Code (or any applicable
regulations thereunder); provided, however, that if a specified transfer
certificate or Opinion of Counsel is required by the express terms of this
Article V to be delivered to the Institutional Trustee or Registrar prior to
registration of transfer of a Capital Security, the Institutional Trustee and/or
Registrar, as applicable, shall be under a duty to receive such certificate or
Opinion of Counsel and to examine the same to determine whether it conforms on
its face to the requirements hereof (and the Institutional Trustee or Registrar,
as the case may be, shall promptly notify the party delivering the same if it
determines that such certificate or Opinion of Counsel does not so conform).

         SECTION 6.5.    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

                                      -45-
<PAGE>

             (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 6.5, 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 6.6.    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 6.7.    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 6.8.    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 not less than a Majority in liquidation amount of the
Capital Securities then outstanding shall have the right to make such
declaration by a notice in writing to the Institutional Trustee, the Sponsor and
the Debenture Trustee.

                                      -46-
<PAGE>

             (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 not less
than a Majority in liquidation amount of the Capital Securities, by written
notice to the Institutional Trustee, the Sponsor and the Debenture Trustee, may
rescind and annul such 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 not less than a Majority in liquidation amount
of the Capital Securities may, on behalf of the Holders of all the Capital
Securities, waive any past default or Event of Default, except a default or
Event of Default in the payment of principal 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

                                      -47-
<PAGE>

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 6.8.

             (f)  Except as otherwise provided in this Section 6.8, the Holders
of not less than a Majority in liquidation amount of the Capital Securities may,
on behalf of the Holders of all the Capital Securities, waive any past default
or Event of Default and its consequences. Upon such waiver, any such default or
Event of Default shall cease to exist, and any default or Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

             (g)  In the event that either (a) an Event of Default has occurred
and is continuing or (b) the Sponsor has elected to defer payments of interest
on the Debentures by extending the interest payment period, Holders of not less
than twenty five percent (25%) in aggregate principal amount of the Outstanding
Securities may audit the quarterly and annual financial statements and statutory
statements of the Sponsor.

             (h)  In the event that either (a) an Event of Default has occurred
and is continuing or (b) the Sponsor has elected to defer payments of interest
in the Capital Securities by extending the interest payment period (as provided
for in Section 2.11 of the Indenture), the Sponsor shall provide to the Trustee
and the Holders of the Capital Securities quarterly and annual statutory
statements, as well as quarterly updates on any of its subsidiaries or
affiliates, which may be in liquidation, under supervisory regulation or in
runoff.

                                  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 December 15, 2041, 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;

                                      -48-
<PAGE>

                  (iv)    the distribution of all 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; provided, that the Holders of
             the Common Securities shall have received the prior approval of all
             necessary Applicable Insurance Regulatory Authorities then
             required;

                  (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, and the
Delaware Trustee, has been notified in writing of the completion of the winding
up of the Trust in accordance with the Statutory Trust Act, the 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.
                         -------

         Subject to Section 6.4:

             (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.

                                      -49-
<PAGE>

             (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 a securities register for the
registration of Securities and of transfers and exchanges of Securities (the
"Securities Register"), 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) and Section
6.4, as applicable, 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 or C, 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.

                                      -50-
<PAGE>

             (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.
                          ------------------------------------

         Subject to Section 6.4:

             (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 B or Exhibit C, as applicable 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

                                      -51-
<PAGE>

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 A PERSON
THAT IS NEITHER A U.S. PERSON (AS DEFINED IN REGULATION S) NOT A U.S. RESIDENT
(WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE
"INVESTMENT COMPANY ACT")) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE
903 OR RULE 904 OF REGULATION S, ACTING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF ONE OR MORE PERSONS WITH RESPECT TO WHICH IT EXERCISES SOLE INVESTMENT
DISCRETION, EACH OF WHICH IS NEITHER A U.S. PERSON (AS DEFINED IN REGULATIONS S)
NOR A U.S. RESIDENT (WITHIN THE MEANING OF THE INVESTMENT COMPANY 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), (D) 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.

                                      -52-
<PAGE>

         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.

                                      -53-
<PAGE>

             (e)  Neither the Institutional Trustee nor the Registrar shall be
responsible for ascertaining whether any transfer hereunder complies with the
registration provisions of or any exemptions from the Securities Act, applicable
state securities laws or the applicable laws of any other jurisdiction, ERISA,
the Code or the Investment Company Act.

         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.    Intentionally Omitted.
                         ---------------------

                                   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 Section 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

                                      -54-
<PAGE>

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, willful misconduct
or bad faith 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 or bad
faith 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.

             (c)  It is expressly understood and agreed by the parties hereto
that insofar as any document, agreement or certificate is executed on behalf of
the Trust by any Trustee, which, for this Subsection 9.2(c) is deemed to include
the Administrators (i) such document, agreement or certificate is executed and
delivered by such Trustee, not in its individual capacity but solely as Trustee
under this Declaration in the exercise of the powers and authority conferred and
vested in it, (ii) each of the representations, undertakings and agreements made
on the part of the Trust is made and intended not as representations,
warranties, covenants, undertakings and agreements by any Trustee in its
individual capacity but is made and intended for the purpose of binding only the
Trust and (iii) under no circumstances shall any Trustee in its individual
capacity be personally liable for the payment of any indebtedness or expenses of
the Trust or be liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken by the Trust under this
Declaration or any other document, agreement or certificate.

         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

                                      -55-
<PAGE>

                  (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.

                                      -56-
<PAGE>

                  (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.

                                      -57-
<PAGE>

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

                                      -58-
<PAGE>

         SECTION 9.5.    Outside Businesses. Any Covered Person, the Sponsor,
                         ------------------
the Parent Guarantor, 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 Parent Guarantor, 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
Parent Guarantor, 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, the Parent Guarantor 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 or bad faith.

             (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.

                                      -59-
<PAGE>

         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
Section 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 and the Parent Guarantor 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 and the Parent Guarantor
(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 and the Parent Guarantor (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 and the Parent
Guarantor (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 and
the Parent Guarantor 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 and the Parent Guarantor in respect of the Sponsor and the Parent
Guarantor or the Trust and filed with the Commission in accordance with the
Exchange Act, if any; and (5) if the Sponsor and the Parent Guarantor 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 Section
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.

                                      -60-
<PAGE>

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

             (f)  The Sponsor and the Parent Guarantor shall furnish to (i) the
Institutional Trustee; (ii) Cohen & Company (at Cira Centre, 2929 Arch Street,
Suite 1703, Philadelphia, PA 19104 or such other address as designated by Cohen
& Company); and (iii) any owner of the Capital Securities reasonably identified
to the Sponsor and the Parent Guarantor and the Trust (which identification
shall be made by either such Owner or by Cohen & Company) a duly completed and
executed certificate substantively and substantially in the form attached hereto
as Exhibit D, including the financial statements referenced in such Exhibit,
which certificate and financial statements shall be so furnished by the Sponsor
and the Parent Guarantor not later than forty five (45) days after the end of
each of the first three fiscal quarters of each fiscal year of the Sponsor and
the Parent Guarantor and not later than ninety (90) days after the end of each
fiscal year of the Sponsor and the Parent Guarantor.

         SECTION 10.3.   Banking. The Trust shall maintain one or more bank
                         -------
accounts in the United States, as defined for purposes of Treasury Regulations
Section 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:

                                      -61-
<PAGE>

                  (i)     the Institutional Trustee,

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

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

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

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

                  (i)     unless the Institutional Trustee shall have first
             received

                          (A)  an Officer's 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.

                                      -62-
<PAGE>

             (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.

                                      -63-
<PAGE>

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 Section 301.7701-7).

                                      -64-
<PAGE>

                                  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:

                                      -65-
<PAGE>

             (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):

                  CRM USA Holdings Trust I
                  c/o CRM USA Holdings, Inc.
                  112 Delafield Street
                  Poughkeepsie, NY 12601
                  Attention: James J. Scardino
                  Telecopy: (845) 483-7389
                  Telephone: (845) 452-4100

                                      -66-
<PAGE>

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

                  CRM Holdings, Ltd.
                  c/o CRM USA Holdings, Inc.
                  112 Delafield Street
                  Poughkeepsie, NY 12601
                  Facsimile:  (845) 483-7389
                  Attention:  James J. Scardino

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

                  The Bank of New York (Delaware)
                  502 White Clay Center
                  Route 273
                  Newark, Delaware 19711 19713
                  Attention: Institutional Trust Services - CRM USA Holdings
                                                             Trust I
                  Telecopy: 302-552-6280
                  Telephone: 302-552-6279

             (d)  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):

                  The Bank of New York Trust Company, National Association
                  600 Travis Street, 50th Floor
                  Houston, Texas  77002
                  Attention: Corporate Trust -  - CRM USA Holdings Trust I
                  Telecopy: 713-216-2101
                  Telephone: 713-216-4781

             (e)  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):

                  CRM USA Holdings, Inc.
                  112 Delafield Street
                  Poughkeepsie, NY 12601
                  Attention: James J. Scardino
                  Telecopy: (845) 483-7389
                  Telephone: (845) 452-4100

                                      -67-
<PAGE>

             (f)  if given to the Sponsor, at the mailing address set forth
below:

                  CRM USA Holdings, Inc.
                  112 Delafield Street
                  Poughkeepsie, NY 12601
                  Attention: James J. Scardino
                  Telecopy: (845) 483-7389
                  Telephone: (845) 452-4100

             (g)  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 Parent Guarantor, 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.

                                      -68-
<PAGE>

             (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, the Parent Guarantor 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.

                                      * * *

                                      -69-
<PAGE>

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

                                         THE BANK OF NEW YORK (DELAWARE),
                                         as Delaware Trustee

                                         By:    /s/ Kristene K. Gullo
                                                --------------------------------
                                         Name:  Kristene K. Gullo
                                         Title: Vice President

                                         THE BANK OF NEW YORK TRUST COMPANY,
                                         NATIONAL ASSOCIATION,
                                         as Institutional Trustee

                                         By:    /s/ Maria D. Calzado
                                                --------------------------------
                                         Name:  Maria D. Calzado
                                         Title: Vice President

                                         CRM USA HOLDINGS, INC., as Sponsor

                                         By:    /s/ James J. Scardino
                                                --------------------------------
                                         Name:  James J. Scardino
                                         Title: Chief Financial Officer

                                         CRM USA HOLDINGS TRUST I

                                         By:    /s/ James J. Scardino
                                                --------------------------------
                                         Name   James J. Scardino
                                                Administrator

                                         By:    /s/ Louis J. Viglotti
                                                --------------------------------
                                         Name:  Louis J. Viglotti
                                                Administrator

                                         CRM HOLDINGS, LTD., as Parent Guarantor

                                         By:    /s/ Daniel G. Hickey, Jr.
                                                --------------------------------
                                         Name:  Daniel G. Hickey, Jr.
                                         Title: Co-Chief Executive Officer

                                      -70-
<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 November 14, 2006 (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. 35,000 Capital Securities of CRM USA
                        ------------------
Holdings Trust I (the "Trust"), with an aggregate stated liquidation amount with
respect to the assets of the Trust of Thirty Five Million Dollars ($35,000,000)
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. 1,083 Common Securities of the Trust
                        -----------------
(the "Common Securities") will be evidenced by Common Security Certificates
substantially in the form of Exhibit A-2 to the Declaration, with such changes
and additions thereto or deletions therefrom as may be required by ordinary
usage, custom or practice. In the absence of an Event of Default, the Common
Securities will have an aggregate stated liquidation amount with respect to the
assets of the Trust of One Million Eighty Three Thousand Dollars ($1,083,000)
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 8.65% (the "Fixed Rate") per annum from November
14, 2006 until December 15, 2011, (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, plus 3.65% (the "Variable Rate" and
together with the Fixed Rate, the "Coupon Rate") of the stated liquidation
amount of $1,000 per Security, such rate being the rate of interest payable on
the Debentures to be held by the Institutional Trustee. Except as set forth
below in respect of an Extension Period, Distributions in arrears for more than
one Distribution Period will bear interest thereon compounded quarterly at the
applicable Coupon Rate for each Distribution Period thereafter (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.

                                      A-I-1
<PAGE>

         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 after the
                expiration of the Fixed Rate Period on December 15, 2011), (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

                                      A-I-2
<PAGE>

                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.

Distributions on the Securities will be cumulative, will accrue from the date of
original issuance, and will be payable, subject to extension of Distribution
payment periods as described herein, quarterly in arrears on March 15, June 15,
September 15 and December 15 of each year, commencing on December 15, 2006
(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 and in 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.

                                      A-I-3
<PAGE>

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 if (1) there shall
have occurred and be continuing an Event of Default, (2) the Debenture Issuer or
the Parent Guarantor shall be in default with respect to its payment of any
obligations under the Guarantee or the Parent Guarantee Agreement, respectively,
(3) the Debenture Issuer shall have given notice of its election to defer
payments of interest on the Debt Securities by extending the interest payment
period as provided herein and such period, or any extension thereof, shall have
commenced and be continuing, or (4) any insurance company subsidiary of the
Debenture Issuer (x) fails to renew more than 51 % of its net premiums written
in one or more transactions during any twelve (12) month period; (y) sells more
than 51% of its rights to renew net premiums written of its insurance
subsidiaries in one or more transactions over the course of a twelve (12) month
period; or (z) (A) any insurance company subsidiary of the Debenture Issuer is
rated by A.M. Best Company, Inc. is downgraded by A.M. Best Company to a rating
below B- or (B) withdraws its rating by A.M. Best Company, Inc., then the Parent
Guarantor and Debenture Issuer shall not, and shall not permit any Affiliate of
the Debenture Issuer to, (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, the Parent Guarantor's or such Affiliate's capital
stock (other than payments of dividends or distributions to the Debenture Issuer
and the Parent Guarantor) or make any guarantee payments with respect to the
foregoing, (ii) make any payment of principal of or interest or premium, if any,
on or repay, repurchase or redeem any debt securities of the Debenture Issuer,
the Parent Guarantor or any Affiliate that rank pari passu in all respects with
or junior in interest to the Debt Securities or (iii) make any payment under any
guarantees of the Debenture Issuer, the Parent Guarantor or any Affiliate that
rank in all respects pari passu with or junior in interest to the Capital
Securities Guarantee (other than, with respect to clauses (i), (ii) and (iii)
above, (A) repurchases, redemptions or other acquisitions of shares of capital
stock of the Debenture Issuer or any subsidiary of the Debenture Issuer (I) 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, (II) in connection with a dividend reinvestment or
stockholder stock purchase plan and/or (III) in connection with the issuance of
capital stock of the Debenture Issuer or such subsidiary (or securities
convertible into or exercisable for such capital stock), as consideration in an
acquisition transaction entered into prior to the occurrence of (i), (ii) or
(iii) above, (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 in the case of a subsidiary
of the Debenture Issuer, any class or series of such subsidiary'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 (or in the case of
indebtedness of a subsidiary of the Debenture Issuer, any class or series of
such subsidiary's indebtedness for any class or series of such subsidiary's
capital stock), (C) the purchase of fractional interests in shares of the
Debenture Issuer's capital stock (or the capital stock of any subsidiary of the
Debenture Issuer) 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,

                                      A-I-4
<PAGE>

(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 and any cash payments in lieu of
fractional shares issued in connection therewith, or (F) payments under the
Guarantee Agreement), or (iv) enter into any contracts with shareholders holding
more than 10% of the outstanding shares of common stock of the Debenture Issuer
((i), (ii), (iii) and (iv) above collectively, the "Block"); provided however,
that the Block shall only apply to subsections 4(x) and (y) above for so long as
any insurance subsidiary is rated below A- by A.M. Best Company, Inc.; provided
further, that the Block shall only apply to subsection 4(z) above for so long as
any such insurance subsidiary is rated below B- by A.M. Best Company, Inc.; Inc.
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 and the Parent Guarantor
pursuant to the Guarantee.

                (e)     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 15 days before
the relevant Distribution 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 selected by the Administrators in accordance with
the Indenture.

                (f)     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.

                (g)     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.

                                      A-I-5
<PAGE>

         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 legally 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, which opinion may rely on private rulings of the Internal Revenue
Service or public rulings of the Internal Revenue Service, 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) and after satisfaction of liabilities to creditors of the Trust, cause
the Debentures to be distributed to the Holders of the Securities on a Pro Rata
basis in accordance with the aggregate liquidation amount thereof.

         The Trust shall dissolve on the first to occur of (i) December 15,
2041, 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 all 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, provided, that the Holders of the
Common Securities shall have received the prior approval of all necessary
Applicable Insurance Regulatory Authorities then required, (v) the entry of a
decree of a judicial dissolution of the Sponsor or the Trust, (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 the Trustees and the Sponsor. As soon as practicable after
the dissolution of the Trust and upon completion of the winding up of the Trust,
the Trust shall terminate upon the filing of a certificate of cancellation with
the Secretary of State of the State of Delaware.

                                      A-I-6
<PAGE>

         If a Liquidation of the Trust occurs as described in clause (i), (ii),
(iii) or (v) in the immediately preceding paragraph, the Trust shall be
liquidated by the Institutional Trustee of the Trust as expeditiously as such
Trustee determines to be possible by distributing, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, to the
Holders of the Securities, the Debentures on a Pro Rata basis to the extent not
satisfied by the Debenture Issuer, unless such distribution is determined by the
Institutional Trustee not to be practical, in which event such Holders will be
entitled to receive 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 December 15, 2036
("Maturity Date") for an amount equal to 100% of the principal amount thereof
plus unpaid interest accrued thereon to such date ("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 December 15, 2011
at the Redemption Price, upon not less than 30 nor more than 60 days' prior
written notice to Holders of such Debentures.

                                      A-I-7
<PAGE>

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' prior written 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
Institutional Trustee for the benefit of 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 published or private letter ruling,
technical advice memorandum, field service advice, 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 of
counsel, 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
of counsel, 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 of counsel, 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 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 December 15, 2011.

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

                                      A-I-8
<PAGE>

         "Special Redemption Price" means (1) if the Special Redemption Date is
before December 15, 2011, 107.5% of the principal amount to be redeemed plus any
accrued and unpaid interest on such Debentures to the Special Redemption Date
and (2) if the Special Redemption Date is on or after December 15, 2011, the
Redemption Price.

         "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 December 15, 2011.

                (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.

                                      A-I-9
<PAGE>

                                (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 or the Parent Guarantor as guarantors
                        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 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 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 Securities to be so redeemed or (ii)
                        register the transfer of or exchange any Securities so
                        selected for redemption, in whole or in part, except for
                        the unredeemed portion of any Securities being redeemed
                        in part.

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

                                     A-I-10
<PAGE>

                                (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 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.

                                     A-I-11
<PAGE>

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.

                                     A-I-12
<PAGE>

         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.

                                     A-I-13
<PAGE>

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

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

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

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

                (d)     Notwithstanding any provision of the Declaration, the
right of any Holder of the Capital Securities to receive payment of
Distributions and other payments upon redemption, 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.

                                     A-I-14
<PAGE>

         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.

                                     A-I-15
<PAGE>

                                   EXHIBIT A-1

                   FORM OF GLOBAL CAPITAL SECURITY CERTIFICATE

                           [FORM OF FACE OF SECURITY]

         THIS CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY WITHIN THE MEANING
OF THE DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY ("DTC") OR A NOMINEE OF DTC. THIS CAPITAL SECURITY IS
EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
DECLARATION, AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER THAN A TRANSFER OF
THIS CAPITAL SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF
DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED
CIRCUMSTANCES.

         UNLESS THIS CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO CRM USA HOLDINGS TRUST I OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS
MADE TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

         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

                                      A-1-1
<PAGE>

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.

                                      A-1-2
<PAGE>

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

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

                                      A-1-3
<PAGE>

Certificate Number   [P-001]                 Number of Capital Securities 35,000

                    Certificate Evidencing Capital Securities

                                       of

                            CRM USA Holdings Trust I

                (liquidation amount $1,000 per Capital Security)

         CRM USA Holdings Trust I, a statutory trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that Cede & Co., as
nominee on behalf of The Depository Trust Company (the "Holder") is the
registered owner of 35,000 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 November 14, 2006 (the "Declaration"), among Louis J. Viglotti and James
J. Scardino, as Administrators, The Bank of New York (Delaware), as Delaware
Trustee, The Bank of New York Trust Company, National Association, as
Institutional Trustee, CRM USA Holdings, Inc., as Sponsor, CRM Holdings, Ltd.,
as Parent Guarantor, 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 and the Indenture to the extent provided therein. The
Holder is also entitled to the benefits of the Parent Guarantee Agreement to the
extent provided therein. The Sponsor will provide a copy of the Declaration, the
Guarantee, the Parent Guarantee Agreement 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 of the
Debenture Issuer 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.

                                      A-1-4
<PAGE>

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

                                           CRM USA Holdings Trust I

                                           By:
                                                  ------------------------------
                                           Name:
                                                  ------------------------------
                                           Title: Administrator

                                           Dated:
                                                  ------------------------------

                          CERTIFICATE OF AUTHENTICATION

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

                                           THE BANK OF NEW YORK TRUST COMPANY,
                                           NATIONAL ASSOCIATION, not in its
                                           individual capacity but solely as the
                                           Institutional Trustee

                                           By:
                                                  ------------------------------
                                                  Authorized Officer

                                           Dated
                                                  ------------------------------

                                      A-1-5
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

         Distributions payable on each Capital Security will be payable at a
fixed rate of 8.65% (the "Fixed Rate") per annum from November 14, 2006 until
December 15, 2011, (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 3.65% (the "Variable Rate" and together with the Fixed Rate,
the "Coupon Rate"), of the stated liquidation amount of $1,000 per Capital
Security, 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 Distribution Period will bear interest thereon compounded quarterly at the
applicable Coupon Rate for each such Distribution 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
shall 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 shall 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 December 15, 2006 (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.

                                      A-1-6
<PAGE>

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 Sponsor
pursuant to the Guarantee.

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

                                      A-1-7
<PAGE>

                                   ASSIGNMENT

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

________________________

________________________

________________________

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

________________________

________________________

________________________

(Insert address and zip code of assignee),

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

                Date:
                     -----------------------------

                Signature:
                          ------------------------

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

                Signature Guarantee:(1)
                                       -----------------------------------

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

                                      A-1-8
<PAGE>

                                   EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

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

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

                                      A-2-1
<PAGE>

Certificate Number   [C-001]                   Number of Common Securities 1,083

                    Certificate Evidencing Common Securities
                                       of
                            CRM USA Holdings Trust I

         CRM USA Holdings Trust I, a statutory trust created under the laws of
the State of Delaware (the "Trust"), hereby certifies that CRM USA Holdings,
Inc. (the "Holder") is the registered owner of 1,083 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 November 14, 2006 among Louis J. Viglotti and James J. Scardino, as
Administrators, The Bank of New York (Delaware), as Delaware Trustee, The Bank
of New York Trust Company, National Association, as Institutional Trustee, the
Holder, as Sponsor and CRM Holdings, Ltd., as Parent Guarantor, 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 of the
Debenture Issuer 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.

                                      A-2-2
<PAGE>

         IN WITNESS WHEREOF, the Trust has executed this Certificate.

                                             CRM USA HOLDINGS TRUST I

                                             By:
                                                    ----------------------------
                                             Name:
                                                    ----------------------------
                                             Title: Administrator

                                      A-2-3
<PAGE>
                          [FORM OF REVERSE OF SECURITY]

         Distributions payable on each Common Security will be identical in
amount to the Distributions payable on each Capital Security, which is at a
fixed rate of 8.65% (the "Fixed Rate") per annum from November 14, 2006 until
December 15, 2011, (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 3.65% (the "Variable Rate" and together with the Fixed Rate,
the "Coupon Rate") of the stated liquidation amount of $1,000 per Common
Security, such rate being the rate of interest payable on the Debentures to be
held by the Institutional Trustee. Distributions in arrears for more than one
Distribution Period will bear interest thereon compounded quarterly at the
applicable Coupon Rate for each such Distribution 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
shall 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 shall 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 December 15, 2006 (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.

                                     A-2-4
<PAGE>

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 legally available for Distribution to
the Holders of the Securities will be limited to payments received from the
Debenture Issuer or the Parent Guarantor. The payment of Distributions out of
moneys held by the Trust is guaranteed by the Guarantor and the Parent Guarantor
pursuant to the Guarantee.

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

                                      A-2-5
<PAGE>

                                   ASSIGNMENT

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

________________________

________________________

________________________

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

________________________

________________________

________________________

(Insert address and zip code of assignee),

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

                Date:
                     -----------------------------

                Signature:
                          ------------------------

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

                Signature Guarantee:(1)
                                       -----------------------------------

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

                                      A-2-6
<PAGE>

                                                                       EXHIBIT B

                         FORM OF TRANSFEREE CERTIFICATE
   TO BE EXECUTED BY TRANSFEREES OTHER THAN QIB/QPS FOR NON-GLOBAL SECURITIES

                                                                 __________, [ ]

The Bank of New York Trust Company, National Association
600 Travis, 50th Floor
Houston, Texas 77002
Attention:  Corporate Trust - CRM USA Holdings Trust I

CRM USA Holdings, Inc.
CRM USA Holdings Trust I
112 Delafield Street
Poughkeepsie, NY 12601

                Re:     Purchase of $____________ stated liquidation amount of
                        Capital Securities (the "Capital Securities") of CRM
                        USA Holdings Trust I

Ladies and Gentlemen:

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

                1.      We understand that the Capital Securities (the "Capital
Securities") of CRM USA Holdings Trust I (the "Trust") (including the guarantee
(the "Guarantee") of CRM USA Holdings, Inc. (the "Sponsor") and the Parent
Guarantee Agreement of CRM Holdings, Ltd., executed in connection therewith) and
the Junior Subordinated Debentures due December 15, 2036 of the Sponsor (the
"Subordinated Notes") (the entire amount of the Trust's outstanding Capital
Securities, the Guarantee, the Parent Guarantee Agreement and the Subordinated
Notes together being referred to herein as the "Offered Securities"), have not
been registered under the Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold except as permitted in the following
sentence. We agree on our own behalf and on behalf of any investor account for
which we are purchasing the Offered Securities that, if we decide to offer, sell
or otherwise transfer any such Offered Securities, (i) such offer, sale or
transfer will be made only (a) to the Trust, (b) to an institutional "accredited
investor" within the meaning of subparagraph (a) (1), (2), (3) or (7) of Rule
501 under the Securities Act that is acquiring Offered Securities for its own
account, or for the account of such an "accredited investor," for investment
purposes and not with a view to, or for offer or sale in connection with, any
distribution thereof in violation of the Securities Act, (c) pursuant to an
effective registration statement under the Securities Act, or (d) pursuant to an
exemption from the Securities Act, in each case in accordance with any
applicable securities laws of any state of the United States or any other
applicable jurisdiction and, in the case of (b) or (d), subject to the right of
the Trust and the Sponsor to require an Opinion of Counsel and other information
satisfactory to each of them. The foregoing restrictions on resale will not
apply subsequent to the date on which, in the written Opinion of Counsel, the
Capital Securities are not "restricted securities" within the meaning of
Rule 144 under the Securities Act.
                                       B-1
<PAGE>

If any resale or other transfer of the Offered Securities is proposed to be made
pursuant to clause (b) or (d) above, the transferor shall deliver a letter from
the transferee substantially in the form of this letter to the Institutional
Trustee as Registrar, which shall provide as applicable, among other things,
that the transferee is an "accredited investor" within the meaning of
subparagraph (a) (1), (2), (3) or (7) of Rule 501 under the Securities Act that
is acquiring such Securities for investment purposes and not for distribution in
violation of the Securities Act. We acknowledge on our behalf and on behalf of
any investor account for which we are purchasing Securities that the Trust and
the Sponsor reserve the right prior to any offer, sale or other transfer
pursuant to clause (b) or (d) to require the delivery of any Opinion of Counsel,
certifications and/or other information satisfactory to the Trust and the
Sponsor. We understand that the certificates for any Offered Security that we
receive 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) or (7) of Rule 501 under the Securities Act
purchasing for our own account or for the account of such an "accredited
investor," and we are acquiring the Offered Securities for investment purposes
and not with view to, or for offer or sale in connection with, any distribution
in violation of the Securities Act, and we have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of our investment in the Offered Securities, and we and any account for
which we are acting are each able to bear the economic risks of our or its
investment.

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

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

                5.      We acknowledge that we are not a fiduciary of (i) 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 (ii) an entity whose underlying assets
include "plan assets" by reason of any Plan's investment in the entity, and are
not purchasing any of the Offered Securities on behalf of or with "plan assets"
by reason of any Plan's investment in the entity.

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

                                       B-2
<PAGE>

                                               (Name of Purchaser)

                                               By:
                                                    ----------------------------
                                               Date:
                                                    ----------------------------

                Upon transfer,  the Capital Securities  (having a stated
liquidation amount of $_____________)  would be registered in the name of the
new beneficial owner as follows.

Name:
Address: ----------------------------
Taxpayer ID Number: -----------------

                                       B-3
<PAGE>

                                                                       EXHIBIT C

                         Form of Transferor Certificate
               to be Executed by QIB/QPs for Non-Global Securities

                                                                 __________, [ ]

The Bank of New York Trust Company, National Association
600 Travis, 50th Floor
Houston, Texas 77002
Attention:  Corporate Trust - CRM USA Holdings Trust I

CRM USA Holdings, Inc.
CRM USA Holdings Trust I
112 Delafield Street
Poughkeepsie, NY 12601

              Re:     Purchase of Capital Securities (the "Capital Securities")
                      of CRM USA Holdings Trust I

         Reference is hereby made to the Amended and Restated Declaration of
Trust of CRM USA Holdings Trust I, dated as of November 14, 2006 (the
"Declaration"), among Louis J. Viglotti and James J. Scardino, as
Administrators, The Bank of New York (Delaware), as Delaware Trustee, The Bank
of New York Trust Company, National Association, as Institutional Trustee, CRM
USA Holdings, Inc., as Sponsor, CRM Holdings, Ltd., as Parent Guarantor.
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 Article V of the Declaration, the Transferor hereby
certifies 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, who is also a "qualified purchaser"
within the meaning of Section 3(c)(7) of the Investment Company Act or (ii) a
company beneficially owned exclusively by one or more "qualified purchasers"
and/or "knowledgeable employees" with respect to the Sponsor within the meaning
of Rule 3c-5 under the Investment Company Act, 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.

                                       C-1
<PAGE>

                                           (Name of Transferor)

                                           By:
                                                  ------------------------------
                                           Name:
                                           Title:
Date:
     -------------------------------

                                       C-2
<PAGE>

                                                                       EXHIBIT D

                         OFFICER'S FINANCIAL CERTIFICATE

         The undersigned, the [Chairman/Vice Chairman/Chief Executive
Officer/President/Vice President/Chief Financial Officer/Treasurer/Assistant
Treasurer], hereby certifies pursuant to Section 10.2(f) of the Amended and
Restated Declaration of Trust, dated as of _____________, 2006 (the
"Declaration"), among CRM USA Holdings, Inc. (the "Sponsor"), CRM Holdings, Ltd.
(the "Parent Guarantor") The Bank of New York Trust Company, National
Association, as institutional trustee, The Bank of New York (Delaware), as
Delaware trustee, and the administrators named therein, that, as of [date],
[20__], the Sponsor and the Parent Guarantor, if applicable, and its Subsidiary
Insurance Companies (as defined below) had the following ratios and balances:

[For the Sponsor and Parent Guarantor, if applicable, and each Subsidiary
Insurance Company (as defined below) provide:]

[INSURANCE COMPANY]
As of [Quarterly/Annual Financial Date], 20__

NAIC Risk Based Capital Ratio (authorized control level)               _____%

Total Policyholders' Surplus                                          $_____

Consolidated Debt to Total Policyholders' Surplus                      _____%

Total Assets                                                          $_____

NAIC Class 1 & 2 Rated Investments to Total Fixed Income Investments   _____%

NAIC Class 1 & 2 Rated Investments to Total Investments                _____%

Return on Policyholders' Surplus                                       _____%

               [For Property & Casualty Companies, also provide:]

[Expense Ratio                                                         _____%

Loss and LAE Ratio                                                     _____%

Combined Ratio                                                         _____%

Net Premiums Written (annualized) to Policyholders' Surplus            _____%]

* A table describing the officer's financial certificate calculation procedures
is provided on page 3

                                       D-1
<PAGE>

The following is a complete list as of [Quarterly/Annual Financial Date] of the
Sponsor's companies which are authorized to write insurance business or
otherwise conduct insurance or reinsurance business (the "Subsidiary Insurance
Companies"):

         [List of Subsidiary Insurance Companies]

[FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial
statements (including the balance sheet, income statement and statement of cash
flows, and notes thereto, together with the report of the independent
accountants thereon) of the Sponsor and its consolidated subsidiaries for the
three years ended _______, 20___] and the Statutory Financial Statements (as
defined in the Declaration) for the year ended [date] 20__.

Pursuant to Section 4.03(c) of the Indenture and Section 10.2(f) of the
Declaration, each of the undersigned hereby certifies that, to the knowledge of
the undersigned, neither the Sponsor nor the Trust is default in the performance
or observance of any of the terms, provisions or conditions contained in the
Indenture or the ARTA (without regard to any period of grace or requirement of
notice provided under the Indenture or the ARTA, as the case may be), for the
calendar year ending on ________, 20__ [, except as follows: specify each such
default and the nature and status thereof].

[FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and
consolidating financial statements (including the balance sheet and income
statement) of the Sponsor and its consolidated subsidiaries and the Statutory
Financial Statements (as defined in the Declaration) for the fiscal quarter
ended [date], 20__.]

The financial statements fairly present in all material respects, in accordance
with U.S. generally accepted accounting principles ("GAAP"), the financial
position of the Sponsor and its consolidated subsidiaries, and the results of
operations and changes in financial condition as of the date, and for the
[quarter] [annual] period ended [date], 20__, and such financial statements have
been prepared in accordance with GAAP consistently applied throughout the period
involved (expect as otherwise noted therein).

The Statutory Financial Statements fairly present in all material respects in
accordance with Applicable Accounting Principles (as defined in the Declaration)
the financial position of the subject insurance company and have been prepared
in accordance with Applicable Accounting Principles consistently applied
throughout the period involved.

                                       D-2
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Officer's
Financial Certificate as of this _____ day of _____________, 20__.

                                                CRM USA Holdings, Inc.

                                                By:
                                                     ---------------------------
                                                Name:
                                                     ---------------------------

                                                CRM USA Holdings, Inc.
                                                112 Delafield Street
                                                Poughkeepsie, NY 12601
                                                (845) 452-4100

                                       D-3
<PAGE>

                 DEFINITIONS FOR OFFICER'S FINANCIAL CERTIFICATE

<TABLE>
<CAPTION>
                  REPORT ITEM                                           DESCRIPTION OF CALCULATION
--------------------------------------------------     -----------------------------------------------------------
<S>                                                    <C>
NAIC Risk Based Capital Ratio-P&C                      Total Adjusted Capital/Authorized Control Level
                                                       Risk-Based Capital

NAIC Risk Based Capital Ratio-Life                     (Total Adjusted Capital-Asset Valuation
                                                       Reserve)/Authorized Control Level Risk-Based Capital

Total Capital and Surplus-Life                         Common Capital Stock + Preferred Capital Stock +
                                                       Aggregate Write-Ins for other than special surplus funds +
                                                       Surplus Notes + Gross Paid-In and Contributed Surplus +
                                                       Aggregate Write-Ins for Special Surplus Funds +
                                                       Unassigned Funds (Surplus) - Treasury Stock.

Total Capital and Surplus-P&C                          Aggregate Write-Ins for Special Surplus Funds + Common
                                                       Capital Stock + Preferred Capital Stock + Aggregate Write
                                                       Ins for other than special surplus funds + Surplus Notes +
                                                       Gross Paid-In and Contributed Surplus + Unassigned
                                                       Funds (Surplus) - Treasury Stock

Total Class 1 & 2 Rated Investments to Total Fixed     (Total Class 1 + Total Class 2 Rated Investments)/Total
Income Investments                                     Fixed Income Investments

Total Class 1 & 2 Rated Investments to Total           (Total Class 1 +Total Class 2 Rated Investments)/Total
Investments                                            Investments

Total Assets                                           Total Assets

Return on Policyholders' Surplus                       Net Income/Policyholders' Surplus

Expense Ratio                                          Other Underwriting Expenses Incurred/Net premiums Earned

Loss and LAE Ratio                                     (Losses Incurred + Loss Expenses Incurred)/Net Premiums
                                                       Earned

Combined Ratio                                         Expense Ratio + Loss and LAE Ratio

Net Premiums Written (annualized) to Policyholders'    Net Premiums Written/Policyholders' Surplus
Surplus
</TABLE>

                                       D-4
<PAGE>

                                                                       EXHIBIT E

                  FORM OF REGULATION S GLOBAL CAPITAL SECURITY
                             TRANSFEREE CERTIFICATE

The Bank of New York Trust Company, National Association,
 as Institutional Trustee
600 Travis Street, 50th Floor
Houston, TX 77002
Attention:  CRM USA Holdings Trust I

Re:      Capital Securities of CRM USA Holdings Trust I (the "Securities")

         Reference is hereby made to the Amended and Restated Declaration of
Trust of CRM USA Holdings Trust I, dated as of November 14, 2006 (the
"Declaration"), among Louis J. Viglotti and James J. Scardino, as
Administrators, The Bank of New York (Delaware), as Delaware Trustee, The Bank
of New York Trust Company, National Association, as Institutional Trustee and
CRM USA Holdings, Inc., as Sponsor. Capitalized terms used but not defined
herein shall have the meanings given them in the Declaration.

         This letter relates to U.S. $_______________ aggregate outstanding
principal amount of the Sponsor's Deferrable Interest Capital Securities of CRM
USA Holdings Trust I which are held in the form of an interest in a Rule 144A
Global Capital Security with the Depository (144A CUSIP NUMBER: [_______], ISIN
NUMBER.: [__________]) in the name of __________________ [name of transferor]
(the "Transferor") to effect the transfer of the Capital Securities in exchange
for an equivalent beneficial interest in a Regulation S Global Capital Security
in the name of __________________ [name of transferee] (the "Transferee").

         In connection with such request, and in respect of such Capital
Securities, the Transferee does hereby certify that such Capital Securities are
being transferred (i) in accordance with the transfer restrictions set forth in
the Indenture relating to the Capital Securities and (ii) pursuant to an
exemption from registration under the United States Securities Act of 1933, as
amended (the "Securities Act"), and in accordance with any applicable securities
laws of any state of the United States or any other jurisdiction.

         In addition, the Transferee hereby represents, warrants and covenants
for the benefit of the Sponsor, the Trust and the Trustees that:

1.       the offer of the Capital Securities was not made to a Person in the
United States;

2.       at the time the buy order was originated, the Transferee was outside
the United States and the transfer constitutes an offshore transaction (within
the meaning of Regulation S);

                                       E-1
<PAGE>

3.       no directed selling efforts have been made in contravention of the
requirements of Rule 903(a) or 904(a) of Regulation S, as applicable;

4.       the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act;

5.       Neither the Transferee nor any account for which it is acting is a U.S.
Person nor a U.S. Resident (within the meaning of the Investment Company Act);

6.       if the sale is made during a restricted period and the provisions of
Rule 903(b)(2) or (3) or Rule 904(b)(1) of Regulation S are applicable thereto,
the Transferee confirms that such sale has been made in accordance with the
applicable provisions of Rule 903(b)(2) or (3) or Rule 904(b)(1), as the case
may be; and

7.       for the duration that it holds any interest in such Capital Security,
either (i) it is not acquiring such Capital Security with the assets of a Plan
or another employee benefit plan subject to applicable law that is substantially
similar to Section 406 of ERISA or Section 4975 of the Code or (ii) the
acquisition, holding or disposition of such Capital Security by the Transferee,
throughout the period that it holds such Capital Security, will not result in a
nonexempt prohibited transaction under Section 406 of ERISA or Section 4975 of
the Code (or, in the case of another employee benefit plan, any substantially
similar applicable law), because the purchase, holding and disposition of such
Capital Security is and will be eligible for relief under a prohibited
transaction exemption, all of the conditions of which are and will be satisfied
upon its acquisition of, and throughout the term that it holds, such Capital
Security. The Transferee represents, warrants and covenants that it will not
sell, pledge or otherwise transfer such Capital Security in violation of the
foregoing.

         In addition, the Transferee hereby represents, warrants and agrees with
the Sponsor, the Trust and the Trustees as to the provisions set forth in
Article V of the Declaration.

         The Transferee understands that the Sponsor, the Trust, the Trustees
and their respective counsel will rely upon the accuracy and truth of the
foregoing representations, and the Transferee hereby consents to such reliance.
Further, the Transferee irrevocably authorizes the Sponsor, the Trust, the
Trustees and their respective counsel 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 Transferee)

                                              By:
                                                    ----------------------------
                                              Name:
                                              Title:
Dated:
      --------------------------------

                                       E-2
<PAGE>

Taxpayer Identification Number:                       Address for Notices:
Wire Instructions for Payments:

           Bank:
           Address:
           Bank ABA#:
           Account No.:                    Tel:

           FAO:                            Fax:

           Attn:                           Attn:

Registered Name (if Nominee):

                                      E-3
<PAGE>

                                                                       EXHIBIT F

            FORM OF RULE 144A GLOBAL SECURITY TRANSFEREE CERTIFICATE

The Bank of New York Trust Company, National Association,
 as Institutional Trustee
600 Travis Street, 50th Floor
Houston, TX 77002 Attention: CRM USA Holdings, Inc.

Re:      Capital Securities of CRM USA Holdings Trust I (the "Securities")

         Reference is hereby made to the Amended and Restated Declaration of
Trust of CRM USA Holdings Trust I, dated as of November 14, 2006 (the
"Declaration"), among Louis J. Viglotti and James J. Scardino, as
Administrators, The Bank of New York (Delaware), as Delaware Trustee, The Bank
of New York Trust Company, National Association, as Institutional Trustee and
CRM USA Holdings, Inc., as Sponsor. Capitalized terms used but not defined
herein shall have the meanings given them in the Declaration.

         This letter relates to U.S. $_______________ aggregate outstanding
principal amount of the Sponsor's Floating Rate Deferrable Interest Capital
Securities of CRM USA Holdings Trust I which are held in the form of an interest
in a Regulation S Global Capital Security deposited with the Depository (REG S
CUSIP NUMBER: [__________] ISIN NUMBER.: [__________]) in the name of
__________________ [name of transferor] (the "Transferor") and a request by the
Transferor to effect the transfer of the Capital Securities in exchange for an
equivalent beneficial interest in a Rule 144A Global Capital Security in the
name of __________________ [name of transferee] (the "Transferee").

         In connection with such request, and in respect of such Capital
Securities, the Transferee does hereby certify that such Securities are being
transferred in accordance with (i) the applicable transfer restrictions set
forth in the Declaration relating to the Capital Securities and (ii) Rule 144A
under the United States Securities Act of 1933, as amended, and any applicable
securities laws of any state of the United States and any other relevant
jurisdiction, and that the Transferee is purchasing the Capital Securities for
its own account or one or more accounts with respect to which the Transferee
exercises sole investment discretion, and the Transferee and any such account
(A) are both Qualified Institutional Buyers within the meaning of Rule 144A and
Qualified Purchasers as defined in the Indenture, (B) is not a dealer of the
type described in paragraph (a)(1)(ii) of Rule 144A unless it owns and invests
on a discretionary basis not less than $25,000,000 in securities of issuers that
are not affiliated to it, (C) is not a participant-directed employee plan, such
as a 401(k) plan, or any other type of plan referred to in paragraph
(a)(1)(i)(D) or (a)(1)(i)(E) of Rule 144A, or a trust fund referred to in
paragraph (a)(1)(i)(F) of Rule 144A that holds the assets of such a plan, unless
investment decisions with respect to the plan are made solely by the fiduciary,
trustee or sponsor of such plan, and (D) was not formed for the purpose of
investing in the Trust (unless each of its beneficial owners is a Qualified
Purchaser).

                                       F-1
<PAGE>

         The Transferee hereby represents, warrants and agrees with the Trust as
to the provisions set forth in Article V of the Declaration.

         Further, the Transferee hereby certifies, represents and warrants that,
for the duration that it holds any interest in such Capital Securities, either
(i) it is not acquiring such Capital Securities with the assets of a Plan or
another employee benefit plan subject to applicable law that is substantially
similar to Section 406 of ERISA or Section 4975 of the Code or (ii) the
acquisition, holding and disposition of such Capital Securities by the
Transferee, throughout the period that it holds such Capital Securities, will
not result in a nonexempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code (or, in the case of another employee benefit plan, any
substantially similar applicable law), because the purchase, holding and
disposition of such Capital Securities is and will be eligible for relief under
a prohibited transaction exemption, all of the conditions of which are and will
be satisfied upon its acquisition of, and throughout the term that it holds,
such Capital Securities. The Transferee represents, warrants and covenants that
it will not sell, pledge or otherwise transfer such Capital Securities in
violation of the foregoing.

         The Transferee understands that the Sponsor, the Trust, the Trustees
and their respective counsels will rely upon the accuracy and truth of the
foregoing representations, and the Transferee hereby consents to such reliance.
Further, the Transferee irrevocably authorizes the Sponsor, the Trust, the
Trustees and their respective counsel 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 Transferee)

                                              By:
                                                    ----------------------------
                                              Name:
                                              Title:
Dated:
      --------------------------------

Taxpayer Identification Number:                       Address for Notices:
Wire Instructions for Payments:

           Bank:
           Address:
           Bank ABA#:
           Account No.:                    Tel:

           FAO                             Fax:

           Attn:                           Attn:

Registered Name (if Nominee):

                                       F-2
<PAGE>

         The Transferor agrees to the foregoing and certifies that it reasonably
believes that such Transferee and its accounts, if any, are both Qualified
Institutional Buyers within the meaning of such Rule 144A and Qualified
Purchasers as defined in the Declaration.

                                           -------------------------------------
                                           Name of Transferor
                                           By:
                                                 -------------------------------
                                           Date:
                                                 -------------------------------

                                       F-3

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