Document:

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                                                               Exhibit 10(xviii)

                           DOMINION RESOURCES, INC.

                    EXECUTIVES' DEFERRED COMPENSATION PLAN

                             AMENDED AND RESTATED

                           Effective January 1, 2001

                            For the Executives of:

                           Dominion Resources, Inc.
                                And Affiliates
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                               TABLE OF CONTENTS

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Section                                                                    Page
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1.   DEFINITIONS............................................................  1

2.   PURPOSE................................................................  4

3.   PARTICIPATION..........................................................  4

4.   DEFERRAL ELECTION......................................................  5

5.   EFFECT OF NO ELECTION..................................................  6

6.   FORMER CNG PLANS.......................................................  6

7.   DEFERRED STOCK OPTION BENEFIT..........................................  7

8.   MATCH CONTRIBUTIONS....................................................  7

9.   INVESTMENT FUNDS.......................................................  8

10.  DISTRIBUTIONS..........................................................  9

11.  HARDSHIP DISTRIBUTIONS................................................. 10

12.  COMPANY'S OBLIGATION................................................... 11

13.  CONTROL BY PARTICIPANT................................................. 12

14.  CLAIMS AGAINST PARTICIPANT'S BENEFIT................................... 12

15.  AMENDMENT OR TERMINATION............................................... 12

16.  ADMINISTRATION......................................................... 12

17.  NOTICES................................................................ 13

18.  WAIVER................................................................. 13

19.  CONSTRUCTION........................................................... 13
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                                       i
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                           DOMINION RESOURCES, INC.

                    EXECUTIVES' DEFERRED COMPENSATION PLAN

1. DEFINITIONS.  The following definitions apply to this Plan and to any
   -----------
related documents.

(a)  Accounts means, collectively, a Participant's Deferral Account, Match
     --------
     Account, and Deferred Stock Option Account, if any.

(b)  Administrator means Dominion Resources Services, Inc.
     -------------

(c)  Beneficiary or Beneficiaries means a person or persons or other entity that
     -----------    -------------
     a Participant designates on a Beneficiary Designation Form to receive
     Benefit payments pursuant to Plan Section 9(i). If a Participant does not
     execute a valid Beneficiary Designation Form, or if the designated
     Beneficiary or Beneficiaries fail to survive the Participant or otherwise
     fail to take the Benefit, the Participant's Beneficiary or Beneficiaries
     shall be the first of the following persons who survive the Participant: a
     Participant's spouse (the person legally married to the Participant when
     the Participant dies); the Participant's children in equal shares. If none
     of these persons survive the Participant, the Beneficiary shall be the
     Participant's estate.

(d)  Beneficiary Designation Form means the form that a Participant uses to name
     ----------------------------
     the Participant's Beneficiary or Beneficiaries.

(e)  Benefit means collectively, a Participant's Deferred Benefit, Match
     -------
     Benefit, and Deferred Stock Option Benefit, if any.

(f)  Board means the Board of Directors of DRI.
     -----

(g)  Change of Control means the occurrence of any of the following events:
     -----------------

     (i)  any person, including a "group" as defined in Section 13(d)(3) of
     Securities Exchange Act of 1934, as amended, becomes the owner or
     beneficial owner of DRI securities having 20% or more of the combined
     voting power of the then outstanding DRI securities that may be cast for
     the election of DRI's directors (other than as a result of an issuance of
     securities initiated by DRI, or open market purchases approved by the
     Board, as long as the majority of the Board approving the purchases is also
     the majority at the time the purchases are made);

     (ii) as the direct or indirect result of, or in connection with, a cash
     tender or exchange offer, a merger or other business combination, a sale of
     assets, a contested election, or any combination of these transactions, the
     persons who were directors of DRI before such transactions cease to
     constitute a majority of

                                       1
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     the Board, or any successor's board, within two years of the last of such
     transactions; or

     (iii) with respect to a particular Participant, an event occurs with
     respect to the Participant's employer such that, after the event, the
     Participant's employer is no longer a Dominion Company.

(h)  Code means the Internal Revenue Code of 1986, as amended.
     ----

(i)  Committee means the Organization, Compensation and Nominating Committee of
     ---------
     the Board.

(j)  Company means DRI and any Dominion Company that is designated by the
     -------
     Administrator as covered by this Plan, and any successor business by
     merger, purchase, or otherwise that maintains the Plan.

(k)  Compensation means a Participant's base salary, cash incentive pay and
     ------------
     other cash compensation from the Company, including annual bonuses, pre-
     scheduled one-time performance-based payments, and gains from stock option
     grants. Compensation does not include stock, stock options or spot awards.
     The Administrator may determine whether to include or exclude an item of
     income from Compensation.

(l)  Deferral means the amount of Compensation that a Participant has elected to
     --------
     defer under a Deferral Election Form.

(m)  Deferral Account means a bookkeeping record established for each
     ----------------
     Participant who is eligible to receive a Deferred Benefit. A Deferral
     Account shall be established only for purposes of measuring a Deferred
     Benefit and not to segregate assets or to identify assets that may be used
     to satisfy a Deferred Benefit. A Deferral Account shall be credited with
     that amount of a Participant's Compensation deferred according to a
     Participant's Deferral Election Form. A Deferral Account also shall be
     credited periodically with deemed investment gain or loss under Plan
     Section 8.

(n)  Deferral Election Form means the form that a Participant uses to elect to
     ----------------------
     defer Compensation pursuant to Plan Section 4.

(o)  Deferred Benefit means the benefit  available to a Participant who has
     ----------------
     executed a valid Deferral Election Form.

(p)  Deferred Stock Option Account means a bookkeeping record established for
     -----------------------------
     each Participant who has made an election to defer the DRI Stock to be
     received under an exercise of a nonstatutory stock option granted under the
     Dominion Resources, Inc. Incentive Compensation Plan and the Dominion
     Resources, Inc. Leadership Stock Option Plan. The account shall be charged
     or credited with net earnings, gains, losses and expenses, as well as any
     appreciation or depreciation

                                       2
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     in market value during each Plan Year for the deemed investment in the DRI
     Stock. The Administrator may charge or credit such earnings, gains, losses,
     appreciation and depreciation based on the actual investment performance of
     the DRI Stock that it has deposited into the trust.

(q)  Deferred Stock Option Benefit means the portion of a Participant's Benefit
     -----------------------------
     from the Participant's Deferred Stock Option Account.

(r)  Disability or Disabled means, with respect to a Participant, that the
     ----------    --------
     Participant is entitled to benefits under the long-term disability plan of
     the Company.

(s)  Distribution Election Form means a form that a Participant uses to
     --------------------------
     establish the duration of the deferral of Compensation and the frequency of
     payments of a Benefit. If a Participant does not execute a valid
     Distribution Election Form, the distribution of a Benefit shall be governed
     by Plan Section 9.

(t)  Dominion Company means Consolidated  Natural Gas, Inc., Virginia Power,
     ----------------
     Dominion Capital, Inc., Dominion Energy, Inc., Dominion Resources Services,
     Inc., or another corporation in which DRI owns stock possessing at least 50
     % of the combined voting power of all classes of stock or which is in a
     chain of corporations with DRI in which stock possessing at least 50% of
     the combined voting power of all classes of stock is owned by one or more
     other corporations in the chain.

(u)  DRI means Dominion Resources, Inc.
     ---

(v)  DRI Stock means the common stock, no par value, of DRI.
     ---------

(w)  DRI Stock Fund means an Investment Fund in which the deemed investment is
     --------------
     DRI Stock.

(x)  Election Date means the date by which an Executive must submit a valid
     -------------
     Deferral Election Form for regular Compensation. For each Plan Year, the
     Election Date shall be January 1 unless the Administrator sets an earlier
     Election Date or as provided in Plan Section 4(b) or 4(c).

(y)  Executive means an individual who is employed by the Company and who (i) is
     ---------
     an executive in salary grades A through G, (ii) has Compensation in excess
     of the dollar limit for the Plan Year under Code section 401(a)(17), or
     (iii) has reached the age of 50 and who has a base salary of at least
     $100,000.

(z)  Investment Fund means one or more deemed investment alternatives offered to
     ---------------
     Participants from time to time. The Company may compute deemed investment
     gain or loss under the Investment Funds based on the actual investment
     performance of assets that it has deposited in a grantor trust (as
     described in Plan Section 11). The DRI Stock Fund shall be one of the
     Investment Funds.

                                       3
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(aa) Match Account means an Account that holds the matching contributions made
     -------------
     by the Company under Plan Section 8.

(bb) Match Benefit means the portion of a Participant's Benefit from the
     -------------
     Participant's Match Account.

(cc) Participant means an individual presently or formerly employed by the
     -----------
     Company who meets one or more of the requirements of Plan Section 3(a).

(dd) Plan means the Dominion Resources, Inc. Executives' Deferred Compensation
     ----
     Plan.

(ee) Plan Year means a calendar year.
     ---------

(ff) Terminate or Termination, with respect to a Participant, means the
     ---------    -----------
     cessation of the Participant's employment with the Company on account of
     death, Disability, severance or any other reason.

2. PURPOSE. The Plan is intended to benefit a "select group of management or
   -------
highly compensated employees," as that term is used under Title I of the
Employee Retirement Income Security Act of 1974, as amended. The Plan is
intended to permit Executives to defer their Compensation, and for related
purposes.

3. PARTICIPATION.
   -------------

(a)  An individual presently or formerly employed by the Company is a
     Participant if he or she is:

     (i)   With respect to any Plan Year, an Executive who executes a valid
           Deferral Election Form for that Plan Year as provided in Plan Section
           3(b);

     (ii)  An individual who has a Deferred Stock Option Account due to an
           election to defer DRI Stock;

     (iii) An individual who is eligible for a Match under Plan Section 8;

     (iv)  An individual who had a benefit entitlement under Section 4.1.(b) of
           the CNG ERISA Excess Plan as of December 31, 2000; or

     (v)   An individual who had a benefit entitlement under Section 5 of the
           Consolidated Natural Gas Company Executive Incentive Deferral Plan as
           of December 31, 2000.

(b)  An Executive may become a Participant for any Plan Year by filing a valid
     Deferral Election Form according to Plan Section 4 on or before the
     Election Date for that Plan Year, or by filing an election to defer DRI
     Stock pursuant to the Dominion Resources, Inc. Incentive Compensation Plan,
     the Dominion

                                       4
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     Resources, Inc. Leadership Stock Option Plan or any other plan designated
     by the Administrator.

(c)  An individual remains a Participant as long as the Participant is entitled
     to a Benefit under the Plan. An individual who is a Participant under
     Section 3(a)(iv) or (v) and who is not an Executive may direct deemed
     investments pursuant to Section 9 but may not make a Deferral election
     under Section 4.

4. DEFERRAL ELECTION. An Executive may elect on or before the Election Date to
   -----------------
defer receipt of a portion of the Executive's Compensation for the Plan Year.
Except as provided in Plan Section 4(a), an Executive may elect a deferral for
any Plan Year only if he or she is an Executive on the Election Date for that
Plan Year. The following provisions apply to deferral elections:

(a)  A Participant may defer up to 50% of the Participant's base salary and up
     to 80% of the Participant's annual cash incentive award, long-term cash
     incentive payments and pre-scheduled one-time cash payments. Compensation
     for deferrals under the Dominion Resources, Inc. Employee Savings Plan
     shall be based on a Participant's Compensation after any deferrals made
     under this Plan.

(b)  A Participant may defer up to 90% of the Participant's gains on stock
     acquired by exercise of an option under the Dominion Resources, Inc.
     Incentive Compensation Plan or the Dominion Resources, Inc. Leadership
     Stock Option Plan. For purposes of deferral of stock option gains, the
     Election Date shall be the date that is six months before the Participant
     exercises the option. Procedures for deferring stock option gains shall be
     established under the Dominion Resources, Inc. Incentive Compensation Plan
     and the Dominion Resources, Inc. Leadership Stock Option Plan.

(c)  Before each Plan Year's Election Date, each Executive shall be provided
     with a Deferral Election Form. Except as provided below, a deferral
     election shall be valid only when the Deferral Election Form is completed,
     signed by the electing Executive, and received by the Administrator on or
     before the Election Date for that Plan Year. In the year in which an
     Executive is first promoted to a salary grade between A through G, the
     Executive may make a deferral election by completing a Deferral Election
     Form within 30 days of the promotion. The deferral election will be
     effective for periods after the Administrator receives it.

(d)  An Executive must complete an Investment Election Form for all amounts in
     the Executive's Deferral Account. The Compensation deferred under a
     Deferral Election Form shall be allocated among available Investment Funds
     in percentages as specified on the investment election form.

(e)  An Executive must complete a Distribution Election Form for the
     distribution of the Executive's Deferral Account.

                                       5
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(f)  The Administrator may reject any Deferral Election Form or any Distribution
     Election Form or both that does not conform to the provisions of the Plan.
     The Administrator may modify any Distribution Election Form at any time to
     the extent necessary to comply with any federal securities laws or
     regulations. The Administrator's rejection or modification must be made on
     a uniform basis with respect to similarly situated Executives. If the
     Administrator rejects a Deferral Election Form, the Executive shall be paid
     the amounts the Executive would have been entitled to receive if the
     Executive had not submitted the rejected Deferral Election Form.

(g)  An Executive may not revoke a Deferral Election Form after the Plan Year
     begins, except that an Executive may revoke a Deferral Election Form within
     30 days following a Change of Control. Any revocation before the beginning
     of the Plan Year or within 30 days following a Change of Control has the
     same effect as a failure to submit a Deferral Election Form. Any writing
     signed by an Executive expressing an intention to revoke the Executive's
     Deferral Election Form and delivered to the Administrator before the close
     of business on the relevant Election Date shall be a revocation.

(h)  Subject to the distribution restrictions of Plan Section 9, an Executive
     may revoke an existing Distribution Election Form at any time by submitting
     a new Distribution Election Form.

5. EFFECT OF NO ELECTION. Except as provided in Plan Section 4(c), an Executive
   ---------------------
who has not submitted a valid Deferral Election Form to the Administrator on or
before the relevant Election Date may not defer any part of the Executive's
Compensation for the Plan Year. The Deferred Benefit of an Executive who submits
a valid Deferral Election Form but fails to submit a valid Distribution Election
Form (either as to the form or commencement of payment) before the relevant
Election Date shall be distributed in a lump sum on or before the February 28
following the calendar year of the Executive's Termination.

6. FORMER CNG PLANS.
   ----------------

(a)  The Plan has assumed a portion of the obligations and liabilities of the
     Unfunded Supplemental Benefit Plan for Employees of Consolidated Natural
     Gas Company and its Participating Subsidiaries Who are Not Represented by a
     Recognized Union ("CNG ERISA Excess Plan") with respect to Participants in
     the Plan. The portion assumed by the Plan is the liabilities related to
     "Matching Contributions" under the "Thrift Plan" (as those terms are
     defined in the CNG ERISA Excess Plan) and related gains and losses as of
     December 31, 2000. A Participant's Benefit as of January 1, 2001 shall
     include the Participant's account under the CNG ERISA Excess Plan as of
     December 31, 2000. The payment of a Participant's Benefit from this Plan
     shall be in complete satisfaction of the Participant's benefits under
     Section 4.1.(b) of the CNG ERISA Excess Plan. A Participant's Investment
     Election Form, Distribution Election Form and

                                       6
<PAGE>

     Beneficiary Election Form shall apply to the portion of the Participant's
     Benefit from the CNG ERISA Excess Plan.

(b)  The Plan has assumed all of the obligations and liabilities of the
     Consolidated Natural Gas Company Executive Incentive Deferral Plan ("CNG
     Deferral Plan") with respect to Participants in the Plan. The liabilities
     assumed by the Plan are the liabilities of the CNG Deferral Plan as of
     December 31, 2000 equal to the sum of all Participants' balances as of
     December 31, 2000 in the CNG Deferral Plan. The Participant's balance in
     the CNG Deferral Plan shall be part of the Participant's Benefit as of
     January 1, 2001. A Participant's Benefit as of January 1, 2001 shall
     include the Participant's account under the CNG Deferral Plan as of
     December 31, 2000. The payment of a Participant's Benefit from this Plan
     shall be in complete satisfaction of the Participant's benefits under
     Section 5 of the CNG Deferral Plan. A Participant's Investment Election
     Form, Distribution Election Form and Beneficiary Election Form shall apply
     to the portion of the Participant's Benefit from the CNG Deferral Plan.

7. DEFERRED STOCK OPTION BENEFIT. A Participant's Deferred Stock Option Benefit
   -----------------------------
shall remain deemed invested in DRI Stock until distribution. Such Participant's
Distribution Election Form and Beneficiary Election Form shall apply to the
Participant's Deferred Stock Option Benefit. If the Company has delivered shares
of DRI Stock to a trust to satisfy the Deferred Stock Option Benefit, payment of
the Deferred Stock Option Benefit shall be tracked as stock and made in shares
of DRI Stock from the trust. If the Company has not delivered shares of DRI
Stock to a trust, the Company shall make payment of the Deferred Stock Option
Benefit in DRI Stock through the Dominion Resources, Inc. Incentive Compensation
Plan and the Dominion Resources, Inc. Leadership Stock Option Plan.

8. MATCH CONTRIBUTIONS.
   -------------------

(a)  With respect to each Plan Year, the Company shall credit a Match (as
     defined below) to the Match Account of each eligible Participant. To be
     eligible for a Match, a Participant must meet all of the following
     criteria:

     (i)   be employed on December 31 or have Terminated during the Plan Year
           due to retirement or early retirement (as defined by the Dominion
           Savings Plan), death or Disability;

     (ii)  have made salary deferrals to the Dominion Savings Plan for the Plan
           Year; and

     (iii) have base salary for the Plan Year in excess of the dollar limit for
           the Plan Year under Code section 401(a)(17).

(b)  The amount of the Match will be determined under the following formula:
     Excess Compensation times Deferral Percentage times Match Percentage. The
                         -----                     -----
     terms in the formula have the following meanings.

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     (i)   Excess Compensation is the amount of the Participant's base salary
           -------------------
           for the Plan Year in excess of the dollar limit for the Plan Year
           under Code section 401(a)(17).

     (ii)  Deferral Percentage is the total of the Participant's salary
           -------------------
           deferrals to the Dominion Savings Plan for the Plan Year divided by
           the lesser of (i) the dollar limit for the Plan Year under Code
           section 401(a)(17), or (ii) the Participant's base salary for the
           Plan Year reduced by deferrals under this Plan and the Dominion
           Savings Plan. The Deferral Percentage may not exceed the maximum
           percentage of compensation on which the Participant would be eligible
           to receive a match by making a deferral under the Dominion Savings
           Plan for the Plan Year.

     (iii) Match Percentage is the percentage of company match made with respect
           ----------------
           to the Participant's salary deferral to the Dominion Savings Plan.

(c)  A Participant's Match Account will be vested to the same extent that the
     Participant's match account in the Dominion Savings Plan is vested. If a
     Participant Terminates employment when the Match Account is not vested, the
     Match Account will be forfeited.

(d)  A Participant will not be required to invest any portion of the Match
     Account in the DRI Stock Fund. The Administrator may establish further
     procedures for the administration of the Match Account.

9. INVESTMENT FUNDS.
   ----------------

(a)  Each Participant shall have the right to direct the deemed investment of
     the Participant's Deferral Account and the Match Account among the
     Investment Funds. The Administrator shall determine the number and type of
     Investment Funds that will be available for investment in any Plan Year.

(b)  Deferrals shall be credited to an Investment Fund as of the date on which
     the deferred Compensation would have been paid to the Participant. A
     separate bookkeeping account shall be established for each Participant who
     has directed a deemed investment in an Investment Fund. Deemed transfers
     between Investment Funds in the Participant's Deferral Account and Match
     Account shall be charged and credited as the case may be to each Investment
     Fund account. The Investment Fund account shall be charged or credited with
     net earnings, gains, losses and expenses, as well as any appreciation or
     depreciation in market value during each Plan Year for the deemed
     investment in the Investment Fund. The Administrator may charge or credit
     such earnings, gains, losses, appreciation and depreciation based on the
     actual investment performance of assets that it has deposited in a grantor
     trust (as described in Plan Section 11).

                                       8
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(c)  Pursuant to procedures established by the Administrator uniformly applied,
     Participants may direct the transfer of deemed investments among Investment
     Funds at least once in each Plan Year.

10. DISTRIBUTIONS.
    -------------

(a)  All Benefits, less withholding for applicable income and employment taxes,
     shall be paid in cash by the Company or its designee, except that payment
     from a Participant's Deferred Stock Option Account shall be made in the
     form of DRI Stock. A Participant may elect to receive a distribution of all
     or a portion of the Participant's Benefits subject to the provisions of
     this Section. Payment of each distribution of Benefits shall be made in one
     lump sum or in installments as provided in this Section. Except in the
     event of Termination for reasons other than death, retirement or
     Disability, or as provided in subsection 10(f), a Participant may receive a
     distribution from the Participant's Deferral Account only on a date that is
     at least six months after the date on which the Participant's most recent
     Deferral Election Form is effective.

     (i)  Unless otherwise provided herein or specified in a Participant's
     Distribution Election Form, any lump sum payment shall be paid, or
     installment payments shall begin, on or before February 28 of the calendar
     year after the Participant's Termination. The Participant may elect on the
     Participant's Distribution Election Form to begin payments (A) on or before
     the February 28 of the calendar year following the calendar year of the
     Participant's Termination; (B) on or before the February 28 of the calendar
     year following the calendar year of the Participant's Termination but no
     sooner than February 28 of a specified calendar year; or (C) even if the
     Participant does not Terminate, on or before the February 28 of a specified
     calendar year.

     (ii) Installment payments will be made in approximately equal amounts
     during each year of the installment period. For a Benefit payable in
     installments, the unpaid balance of a Participant's Deferral Account and
     Match Account, if any, shall continue to be maintained in Investment Funds.
     The unpaid balance of a Participant's Deferred Stock Option Account shall
     remain invested in DRI Stock.

(b)  Benefits paid on account of Termination for retirement shall be paid in a
     lump sum unless the Participant's Distribution Election Form specifies
     annual installment payments over a period of up to five (5) years.

(c)  Benefits paid on account of a Participant's death shall be paid in a lump
     sum in accordance with the provisions of Plan Section 9(i).

(d)  Benefits paid on account of Termination due to Disability shall begin to be
     paid as soon as administratively practicable following the Participant's
     Termination. The Benefits shall be paid in the method designated on the
     Participant's Distribution Election Form, or in annual installment payments
     over a period of five (5) years if the Participant made no election on the
     Participant's Distribution Election Form.

                                       9
<PAGE>

     If a Disabled Participant begins to receive Benefits and thereafter
     recovers and returns to employment before the balance of the Participant's
     Accounts is fully paid, distributions shall cease and any remaining
     Benefits under the Plan shall be governed by this Plan Section 9 and the
     Participant's Distribution Election Form.

(e)  Benefits paid on account of Termination due to other than death, Disability
     or retirement shall be paid in a lump sum as soon as practicable following
     the Termination.

(f)  A Participant may elect to receive payment of Benefits prior to
     Termination. If payment is made pursuant to a Distribution Election Form
     that was effective less than six months before the date of such payment,
     the Participant's Deferred Benefit shall be reduced by 10%. Such payment
     shall be paid in a lump sum.

(g)  Notwithstanding any other provision of this Plan or a Participant's
     Distribution Election Form, the Committee in its sole discretion may
     postpone the distribution of all or part of a Benefit to the extent that
     the payment would not be deductible under Section 162(m) of the Internal
     Revenue Code of 1986, as amended (the Code) or any successor thereto. A
     Benefit distribution that is postponed pursuant to the preceding sentence
     shall be paid as soon as it is possible to do so within the deduction
     limitations of Section 162(m) of the Code.

(h)  A Participant or Beneficiary may not assign Benefits. A Participant may use
     only one Beneficiary Designation Form to designate one or more
     Beneficiaries for all of the Participant's Benefits under the Plan. Such
     designations are revocable. Each Beneficiary shall receive the
     Beneficiary's portion of the Participant's Accounts on or before February
     28 of the year following the Participant's death. However, the
     Administrator, in its discretion, may approve a Beneficiary's request for
     accelerated payment under Plan Section 10. The Administrator may require
     that multiple Beneficiaries agree upon a single distribution method.

11. HARDSHIP DISTRIBUTIONS.
    ----------------------

(a)  At its sole discretion and at the request of a Participant before or after
     the Participant's Termination, or at the request of any of the
     Participant's Beneficiaries after the Participant's death, the
     Administrator may accelerate and pay all or part of any amount attributable
     to a Participant's Benefits. The Administrator may accelerate distributions
     only in the event of Hardship as defined in subsection (b). An accelerated
     distribution under this Section shall be limited to the amount necessary to
     satisfy the Hardship.

(b)  Hardship is a severe financial hardship to the Participant resulting from a
     sudden and unexpected illness or accident of the Participant or of a
     dependent of the Participant, loss of the Participant's property due to
     casualty, or other similar extraordinary and unforeseeable circumstances
     arising as a result of events beyond the control of the Participant. The
     circumstances that will constitute a Hardship will depend upon the facts of
     each case, but, in any case, payment will

                                       10
<PAGE>

     not be made to the extent that the Hardship is or may be relieved: (i)
     through reimbursement or compensation by insurance or otherwise, (ii) by
     liquidation of the Participant's assets, to the extent that the liquidation
     of such assets would not itself cause severe financial hardship, or (iii)
     by cessation of deferrals under the Plan.

(c)  Distributions under this Section 10 shall be made in one lump sum payment
     in cash except that in the case of a Participant's Deferred Stock Option
     Benefit, distributions shall be made in DRI Stock. Distributions shall be
     made proportionately from all of the Investment Funds in the Participant's
     Accounts first, and, with respect to Deferred Benefits, shall be limited to
     amounts attributable to Compensation deferred under a Deferral Election
     Form that was effective at least six months before the distribution. The
     Investment Funds in the Participant's Accounts shall be valued as of the
     last business day prior to the distribution, or as of such other date as
     may be determined in the discretion of the Administrator.

(d)  A distribution under this Section 10 shall be in lieu of that portion of a
     Participant's Benefit that would have been paid otherwise. A Benefit shall
     be adjusted by reducing the balance of the Participant's Accounts by the
     amount of the distribution.

12. COMPANY'S OBLIGATION.
    --------------------

(a)  The Plan shall be unfunded. DRI shall not be required to segregate any
assets that at any time may represent a Benefit. DRI shall establish a grantor
trust (within the meaning of Sections 671 through 679 of the Code) for
Participants and Beneficiaries and shall deposit Participants' Match Benefits
with the trustee of such trust. DRI may deposit funds with the trustee of such
trust to provide the Deferred Benefits or Deferred Stock Option Benefits to
which Participants and Beneficiaries may be entitled under the Plan. The funds
deposited with the trustee or trustees of such trust, and the earnings thereon,
will be dedicated to the payment of Benefits under the Plan but shall remain
subject to the claims of the general creditors of the Company. Any liability of
DRI to a Participant or Beneficiary under this Plan shall be based solely on any
contractual obligations that may be created pursuant to this Plan. No such
obligation of DRI shall be deemed to be secured by any pledge of, or other
encumbrance on, any property of DRI.

(b)  Notwithstanding the foregoing, in the event of a Change of Control, DRI
shall, immediately prior to a Change of Control, make an irrevocable
contribution to the trust so that the amount held in trust is equal to 105% of
the amount that is sufficient to pay each Participant or Beneficiary the Benefit
to which they would be entitled, and for which DRI and each other Dominion
Company is liable, pursuant to the terms of the Plan as in effect on the date on
which the Change of Control occurred. The amount of such contribution exceeding
the amount required to pay Benefits under the Plan shall be used to pay
administrative costs of the trust and reimburse any Participant who incurs legal
fees as a result of an attempt to enforce the terms of the Plan against an
acquirer of DRI.

                                       11
<PAGE>

Additionally, the trustee of the trust as of the date of the Change of Control
may not be removed as trustee of the trust before the fifth anniversary of the
date of the Change of Control.

13. CONTROL BY PARTICIPANT.  A Participant shall have no control over the
    ----------------------
Participant's Benefit except according to the Participant's Deferral Election
Forms, Distribution Election Forms, Investment Election Form and Beneficiary
Designation Form.

14. CLAIMS AGAINST PARTICIPANT'S BENEFIT. An Account shall not be subject in any
    ------------------------------------
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to do so shall be void. A Benefit shall
not be subject to attachment or legal process for a Participant's debts or other
obligations. Nothing contained in this Plan shall give any Participant any
interest, lien, or claim against any specific asset of the Company. A
Participant or the Participant's Beneficiary shall have no rights other than as
a general creditor of DRI.

15. AMENDMENT OR TERMINATION. Except as otherwise provided, this Plan may be
    ------------------------
altered, amended, suspended, or terminated at any time by the Committee. The
Committee may not alter, amend, suspend, or terminate this Plan without the
consent of that Participant if such action would result in (i) a distribution of
the Participant's Benefit in any manner not provided in the Plan or (ii)
immediate taxation of a Benefit to a Participant.

16. ADMINISTRATION.
    --------------

(a)  This Plan shall be administered by the Administrator. The Administrator
     shall interpret the Plan, establish regulations to further the purposes of
     the Plan and take any other action necessary to the proper operation of the
     Plan. Prior to paying a Benefit under the Plan, the Administrator may
     require the Participant, former Participant or Beneficiary to provide such
     information or material as the Administrator, in its sole discretion, shall
     deem necessary to make any determination it may be required to make under
     the Plan. The Administrator may withhold payment of a Benefit under the
     Plan until it receives all such information and material and is reasonably
     satisfied of its correctness and genuineness. The Administrator may
     delegate all or any of its responsibilities and powers to any persons
     selected by it, including designated officers of employees of the Company.

(b)  If for any reason a Benefit payable under this Plan is not paid when due,
     the Participant or Beneficiary may file a written claim with a committee
     appointed by the Administrator to review claims for benefits under the Plan
     (the "Claims Committee"). If the claim is denied or no response is received
     within forty-five (45) days after the date on which the claim was filed
     with the Claims Committee (in which case the claim will be to have been
     denied), the Participant or Beneficiary may appeal the denial to the
     Committee within sixty (60) days of receipt of written notification of the
     denial or the end of the forty-five day period,

                                       12
<PAGE>

     whichever occurs first. In pursuing an appeal, the Participant or
     Beneficiary may request that the Committee review the denial, may review
     pertinent documents, and may submit issues and documents in writing to the
     Committee. A decision on appeal will be made within sixty (60) days after
     the appeal is made, unless special circumstances require the Committee to
     extend the period for another sixty (60) days.

17. NOTICES.  All notices or election required under the Plan must be in
    -------
writing. A notice or election shall be deemed delivered if it is delivered
personally or sent registered or certified mail to the person at the person's
last known business address.

18. WAIVER.  The waiver of a breach of any provision in this Plan does not
    ------
operate as and may not be construed as a waiver of any later breach.

19. CONSTRUCTION. This Plan shall be adopted and maintained according to the
    ------------
laws of the Commonwealth of Virginia (except its choice-of-law rules and except
to the extent that such laws are preempted by applicable federal law). Headings
and captions are only for convenience; they do not have substantive meaning. If
a provision of this Plan is not valid or enforceable, the validity or
enforceability of any other provision shall not be affected. Use of one gender
includes all, and the singular and plural include each other.

IN WITNESS WHEREOF, this instrument has been executed this ____ day of
_____________, 2000.

                                            DOMINION RESOURCES, INC.

                                            By__________________________________
                                                 James L. Trueheart
                                                 Group Vice President and
                                                 Chief Administrative Officer

                                       13=========================================================

                        INTERVEST CORPORATION OF NEW YORK

                                       AND

                              THE BANK OF NEW YORK
                                   as Trustee

                                    INDENTURE

                          Dated as of         1, 2001
                                      --------

                                   $5,000,000
                     Series   /  /01 Subordinated Debentures
                            -- --

                         $1,000,000 Due October 1, 2004
                         $2,000,000 Due October 1, 2006
                         $2,000,000 Due October 1, 2008

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

<PAGE>

                              CROSS REFERENCE TABLE
                              ---------------------

TIA Section                                                    Indenture Section
-----------                                                    -----------------

310(a)(1) and (2)..........................                                 7.10
310(a)(3) and (4)..........................                                 N.A.
310(b).....................................                    7.08, 7.10, 11.02
310(c).....................................                                 N.A.
311(a) and (b).............................                                 7.11
311(c).....................................                                 N.A.
312(a).....................................                                 2.05
312(b) and (c).............................                                 2.06
313(a).....................................                                 7.06
313(b)(1)..................................                                 N.A.
313(b)(2)..................................                                 7.06
313(c).....................................                          7.06, 11.02
313(d).....................................                                 7.06
314(a).....................................                          4.02, 11.02
314(b).....................................                                 N.A.
314(c)(1) and (c)(2).......................                                11.03
314(c)(3) and (d)..........................                                 N.A.
314(e).....................................                                11.04
314(f).....................................                                 N.A.
315(a), (c) and (d)........................                                 7.01
315(b).....................................                          7.05, 11.02
315(e).....................................                                 6.11
316(a)(1)(A)...............................                                 6.05
316(a)(1)(B)...............................                                 6.04
316(a)(2)..................................                                 9.02
316(a) Last Paragraph......................                          2.10, 11.05
316(b).....................................                                 6.07
317(a).....................................                           6.08, 6.09
317(b).....................................                                 2.04
318(a).....................................                                11.01

-------------------------
N.A. means Not Applicable.

Note:    This cross reference  table shall not, for any purpose, be deemed to be
         a part of the Indenture.

<PAGE>

                                   ARTICLE ONE
                   DEFINITIONS AND INCORPORATION BY REFERENCE
                   ------------------------------------------

1.01.  Definitions..........................................................   1
       -----------

1.02.  Other Definitions....................................................   3
       -----------------

1.03.  Incorporation by Reference of Trust Indenture Act-...................   3
       -------------------------------------------------

1.04.  Acts of Holders......................................................   3
       ---------------

1.05.  Rules of Construction................................................   4
       ---------------------

                                   ARTICLE TWO
                                 THE DEBENTURES
                                 --------------

2.01.  Form and Dating......................................................   5
       ---------------

2.02.  Execution and Authentication.........................................   5
       ----------------------------

2.03.  Registrar and Paying Agent...........................................   6
       --------------------------

2.04.  Paying Agent to Hold Money in Trust..................................   6
       -----------------------------------

2.05.  Debentureholder Lists................................................   6
       ---------------------

2.06.  Access of Information to Debentureholders............................   7
       -----------------------------------------

2.07.  Transfer and Exchange................................................   7
       ---------------------

2.08.  Replacement Debentures...............................................   8
       ----------------------

2.09.  Outstanding Debentures...............................................   8
       ----------------------

2.10.  Treasury Debentures..................................................   8
       -------------------

2.11.  Temporary Debentures.................................................   8
       --------------------

2.12.  Cancellation.........................................................   9
       ------------

2.13.  Defaulted Interest...................................................   9
       ------------------

2.14.  CUSIP Numbers........................................................   9
       -------------

<PAGE>

                                  ARTICLE THREE
                                   REDEMPTION
                                  -------------

3.01.  Notices to Trustee...................................................   9
       ------------------

3.02.  Selection of Debentures to be Redeemed...............................  10
       --------------------------------------

3.03.  Notice of Redemption.................................................  10
       --------------------

3.04.  Effect of Notice of Redemption.......................................  10
       ------------------------------

3.05.  Deposit of Redemption Price..........................................  10
       ---------------------------

3.06.  Debentures Redeemed in Part..........................................  10
       ---------------------------

                                  ARTICLE FOUR
                                    COVENANTS
                                  ------------

4.01.  Payment of Debentures................................................  11
       ---------------------

4.02.  SEC Reports..........................................................  11
       -----------

4.03.  Compliance Certificate...............................................  12
       ----------------------

4.04.  Limitation on Dividends and Stock Purchases..........................  12
       -------------------------------------------

4.05.  Pari Passu and Other Indebtedness....................................  12
       ---------------------------------

                                  ARTICLE FIVE
                              SUCCESSOR CORPORATION
                              ---------------------

5.01.  When the Company May Merge, etc......................................  13
       -------------------------------

                                   ARTICLE SIX
                              DEFAULTS AND REMEDIES
                              ---------------------

6.01.  Events of Default....................................................  14
       -----------------

6.02.  Acceleration.........................................................  14
       ------------

6.03.  Other Remedies.......................................................  15
       --------------

6.04.  Waiver of Past Defaults..............................................  15
       -----------------------

6.05.  Control by Majority..................................................  15
       -------------------

6.06.  Limitation of Suits..................................................  16
       -------------------

<PAGE>

6.07.  Rights of Holders to Receive Payment.................................  16
       ------------------------------------

6.08.  Collection Suit by Trustee...........................................  16
       --------------------------

6.09.  Trustee May File Proof of Claim......................................  16
       -------------------------------

6.10.  Priorities...........................................................  16
       ----------

6.11.  Undertaking for Costs................................................  17
       ---------------------

                                  ARTICLE SEVEN
                                     TRUSTEE
                                  -------------

7.01.  Duties of Trustee....................................................  18
       -----------------

7.02.  Rights of Trustee....................................................  18
       -----------------

7.03.  Individual Rights of Trustee.........................................  19
       ----------------------------

7.04.  Trustee's Disclaimer.................................................  19
       --------------------

7.05.  Notice of Defaults...................................................  20
       ------------------

7.06.  Reports by Trustees to Holders.......................................  20
       ------------------------------

7.07.  Compensation and Indemnity...........................................  20
       --------------------------

7.08.  Replacement of Trustee...............................................  21
       ----------------------

7.09.  Successor Trustee by Merger, etc.....................................  21
       --------------------------------

7.10.  Eligibility; Disqualification........................................  22
       -----------------------------

7.11.  Preferential Collection of Claims Against the Company................  22
       -----------------------------------------------------

7.12.  Paying Agents........................................................  22
       -------------

                                  ARTICLE EIGHT
                             DISCHARGE OF INDENTURE
                             ----------------------

8.01.  Termination of the Company's Obligations.............................  23
       ----------------------------------------

8.02.  Application of Trust Money...........................................  24
       --------------------------

8.03.  Repayment to the Company.............................................  24
       ------------------------

<PAGE>

                                  ARTICLE NINE
                       AMENDMENTS, SUPPLEMENTS AND WAIVERS
                       -----------------------------------

9.01.  Without Consent of Holders...........................................  24
       --------------------------

9.02.  With Consent of Holders..............................................  24
       -----------------------

9.03.  Execution of Supplemental Indentures.................................  25
       ------------------------------------

9.04.  Compliance with Trust Indenture Act..................................  25
       -----------------------------------

9.05.  Revocation and Effect of Consents....................................  25
       ---------------------------------

9.06.  Notation on or Exchange of Debentures................................  26
       -------------------------------------

9.07.  Trustee to Sign Amendments, etc......................................  26
       -------------------------------

                                   ARTICLE TEN
                                  SUBORDINATION
                                  -------------

10.01.  Agreement to Subordinate............................................  26
        ------------------------

10.02.  Debentures Subordinated to Prior Payment of All Senior Indebtedness on
        ----------------------------------------------------------------------
        Dissolution, Liquidation or Reorganization of the Company...........  27
        ---------------------------------------------------------

10.03.  Debentureholders to be Subrogated to Rights of Holders of Senior
        ----------------------------------------------------------------
        Indebtedness........................................................  28
        ------------

10.04.  Obligation of the Company Unconditional.............................  28
        ---------------------------------------

10.05.  Knowledge of Trustee................................................  29
        --------------------

10.06.  Application by Trustee of Monies Deposited With It..................  29
        --------------------------------------------------

10.07.  Subordination Rights Not Impaired by Acts or Omissions of the Company or
        ------------------------------------------------------------------------
         Holders of Senior Indebtedness.....................................  29
         ------------------------------

10.08.  Debentureholders Authorize Trustee to Effectuate Subordination of
        --------------------------------------------------------------------
        Debentures........................................................... 30
        ----------

10.09.  Right of Trustee to Hold Senior Indebtedness........................  30
        --------------------------------------------

10.10.  Article Ten Not to Prevent Events of Default........................  30
        --------------------------------------------

10.11.  No Fiduciary Duty Created to Holders of Senior Indebtedness.........  30
        -----------------------------------------------------------

<PAGE>

10.12.  Trustee's Compensation Not Prejudiced...............................  30
        -------------------------------------

                                 ARTICLE ELEVEN
                                  MISCELLANEOUS
                                 --------------

11.01.  Trust Indenture Act Controls........................................  30
        ----------------------------

11.02.  Notices.............................................................  30
        -------

11.03.  Certificate and Opinion as to Conditions Precedent..................  31
        --------------------------------------------------

11.04.  Statements Required in Certificate or Opinion.......................  31
        ---------------------------------------------

11.05.  Rules by Trustee and Agents.........................................  32
        ---------------------------

11.06.  Legal Holidays......................................................  32
        --------------

11.07.  Governing Law.......................................................  32
        -------------

11.08.  No Recourse Against Others..........................................  32
        --------------------------

11.09.  Successors..........................................................  32
        ----------

11.10.  Duplicate Originals.................................................  32
        -------------------

11.11.  Separability........................................................  33
        ------------

<PAGE>

         INDENTURE,  dated as of          1, 2001, between INTERVEST CORPORATION
                                 ---------
OF NEW YORK, a New York corporation (the "Company"), and THE BANK OF NEW YORK, a
New York banking corporation, as trustee (the "Trustee").

         Intending to be legally bound hereby,  each party agrees as follows for
the  benefit  of the other  party and for the equal and  ratable  benefit of the
Holders of the Company's Series   /  /01 Subordinated Debentures.
                                -- --

                                   ARTICLE ONE

                   DEFINITIONS AND INCORPORATION BY REFERENCE
                   ------------------------------------------

         SECTION 1.01.  Definitions.
                        -----------

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

         "Agent" means any Registrar, Paying Agent or co-Registrar.

         "Board of Directors" means the Board of Directors of the Company or any
committee of that Board duly authorized to act for it hereunder.

         "Business Day" means a day that is not a Legal Holiday.

         "Capital  Stock" means any and all shares,  interests,  participations,
rights or other equivalents (however designated) of corporate stock.

         "Company"  means  the  party  named as such in this  Indenture  until a
successor  replaces  it  pursuant  to  the  applicable   provisions  hereof  and
thereafter means any such successor.

         "Debentures" means: the Series   /  /01 Subordinated Debentures, issued
                                        -- --
under this Indenture,  in three maturities as follows:  October 1, 2004, October
1, 2006 and  October 1,  2008;  as  amended  or  supplemented  from time to time
pursuant  to the  terms of this  Indenture;  "Debenture"  means  any one of such
Debentures.

         "Default"  means any event which is, or after notice or passage of time
or both would be, an Event of Default.

         "Holder"  or  "Debentureholder"  means  the  person  in  whose  name  a
Debenture is registered on the Registrar's books.

<PAGE>

         "Indebtedness"   means,   with  respect  to  any  person:   (i)(A)  all
indebtedness  of such person for borrowed  money,  (B) all  indebtedness of such
person which is evidenced by a note, debenture, bond or other similar instrument
(including  capitalized  lease  and  purchase  money  obligations),  and (C) all
indebtedness  (including  capitalized lease  obligations)  incurred,  assumed or
given in the  acquisition  (whether by way of purchase,  merger or otherwise) of
any  business,  real  property or other assets  (except  assets  acquired in the
ordinary  course of the acquiror's  business);  (ii) any  indebtedness of others
described in the  preceding  clause (i) which such person has  guaranteed or for
which it is otherwise  liable;  and (iii) any amendment,  renewal,  extension or
refunding of any indebtedness referred to in clauses (i) and (ii) above.

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

         "Maturity" means any of the three maturities of Debentures issued under
this Indenture.

         "Officer"  means the  Chairman or  co-Chairman  of the Board,  the Vice
Chairman of the Board, the President,  any Vice President,  the Treasurer or the
Secretary of the Company.

         "Officers'  Certificate"  means a certificate signed by two Officers or
by an Officer  and an  Assistant  Treasurer  or an  Assistant  Secretary  of the
Company.

         "Opinion of Counsel" means a written opinion from legal counsel who may
be counsel for the Company or other counsel who is acceptable to the Trustee.

         "person" means any individual, corporation, partnership, joint venture,
association,   joint-  stock  company,  trust,  unincorporated  organization  or
government or other agency or political subdivision thereof.

         "principal" of a debt security means the principal of the security plus
the premium, if any, on the security.

         "Responsible Officer", when used with respect to the Trustee, means any
officer of the Trustee assigned by the Trustee to administer its corporate trust
business.

         "SEC" means the Securities and Exchange Commission.

         "Subsidiary"  means a corporation,  a majority of whose voting stock is
owned by the  Company or a  Subsidiary.  Voting  stock is Capital  Stock  having
voting power under ordinary circumstances to elect directors.

         "TIA"  means  the  Trust  Indenture  Act of 1939 (15 U.S.  Code  ss.ss.
77aaa-77bbbb)  as in effect on the date this  Indenture was executed,  except as
provided in Section 9.04.

                                        2

<PAGE>

         "Trustee"  means  the  party  named as such in this  Indenture  until a
successor replaces it and thereafter means the successor.

         "United States" means the United State of America.

         SECTION 1.02.  Other Definitions.
                        -----------------

                  Term                                    Defined in Section
                  ----                                    ------------------

                  "Bankruptcy Law"                                  6.01
                  "Custodian"                                       6.01
                  "Event of Default"                                6.01
                  "Legal Holiday"                                  11.06
                  "Paying Agent"                                    2.03
                  "Registrar"                                       2.03
                  "Restricted Payments"                             4.04
                  "Senior Indebtedness"                            10.01
                  "U.S. Government Obligations"                     8.01

         SECTION  1.03.  Incorporation  by  Reference  of Trust  Indenture  Act.
                         -------------------------------------------------------
Whenever  this  Indenture  refers to a provision  of the TIA,  the  provision is
incorporated  by reference in and made a part of this  Indenture.  The following
TIA terms used in this Indenture have the following meanings:

         "Commission" means the SEC.

         "indenture securities" means the Debentures.

         "indenture security holder" means a Debentureholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor"  on  the  indenture securities means the Company or any other
          obligor on the Debentures.

         All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA  reference  to  another  statute or defined by SEC rules have the
meanings assigned to them.

         SECTION 1.04. Acts of Holders. (a) Any request, demand,  authorization,
                       ---------------
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders  may be embodied  in and  evidenced  by one or more
instruments of  substantially  similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as  herein  otherwise  expressly

                                        3

<PAGE>

provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where it is hereby expressly required,  to the
Company.  Such instrument or instruments  (and the action  embodied  therein and
evidenced  thereby)  are herein  sometimes  referred  to as the "Act" of Holders
signing  such  instrument  or  instruments.  Proof  of  execution  of  any  such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose  of this  Indenture  and  conclusive  in  favor of the  Trustee  and the
Company, if made in the manner provided in this Section.

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

         (c) The  ownership of Debentures shall be proved by the registration of
the books of the Registrar.

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

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

         SECTION 1.05.  Rules of  Construction.  Unless  the  context  otherwise
                        ---------------------
requires: (i) a term has the meaning assigned to it; (ii) an accounting term not
otherwise defined has the meaning assigned to it  in  accordance with  generally

                                        4

<PAGE>

accepted accounting principles;  (iii) "or" is not exclusive;  and (iv) words in
the singular include the plural, and words in the plural include the singular.

                                   ARTICLE TWO

                                 THE DEBENTURES
                                 --------------

         SECTION  2.01.  Form  and  Dating.  The  Debentures  and the  Trustee's
certificate of  authentication  shall be substantially in the forms set forth in
Exhibits  A, B C, D, E and F which are  incorporated  in and form a part of this
Indenture.  The Debentures may have notations,  legends or endorsements required
by law, securities exchange rule or usage. The Company shall approve the form of
the Debentures and any notation, legend or endorsement on them and its execution
shall constitute  conclusive  evidence of its approval.  Each Debenture shall be
dated the date of its authentication.  The terms and provisions contained in the
forms  of  Debenture  annexed  hereto  as  Exhibits  A,  B,  C, D, E and F shall
constitute, and are hereby expressly made, a part of this Indenture.

         SECTION 2.02.  Execution and Authentication. Two Officers shall execute
                        ----------------------------
the Debentures for the Company by manual or facsimile  signature.  The Company's
seal shall be affixed or reproduced on the Debentures.

         If an Officer  whose  signature  is on a Debenture no longer holds that
office at the time the Registrar,  as  hereinafter  defined,  authenticates  the
Debenture, the Debenture shall be valid nevertheless.

         A Debenture  shall not be valid until the Registrar  manually signs the
certificate  of  authentication  on  the  Debenture.   The  signature  shall  be
conclusive  evidence  that the  Debenture  has  been  authenticated  under  this
Indenture.

         The Registrar shall  authenticate  Debentures for original issue in the
aggregate principal amount of up to $5,000,000 (but not more than: $1,000,000 of
Debentures  maturing October 1, 2004;  $2,000,000 of Debentures maturing October
1, 2006; or $2,000,000  of Debentures  maturing  October 1, 2008) upon a written
order of the Company  signed by two  Officers or by an Officer and an  Assistant
Treasurer  of the  Company.  The order shall  specify the amount and Maturity of
Debentures to be  authenticated,  whether interest on the Debentures will accrue
or  will  be paid  quarterly,  and the  date on  which  the  original  issue  of
Debentures is to be authenticated.  The aggregate principal amount of Debentures
outstanding  at any time may not exceed the  amount  set forth  above  except as
provided in Sections 2.08 and 2.09.

         The Registrar  may appoint an  authenticating  agent  acceptable to the
Company  to  authenticate  Debentures.  Unless  limited  by the  terms  of  said
appointment,  an authenticating  agent may authenticate  Debentures whenever the
Registrar may do so. Each reference in this Indenture to  authentication  by the
Registrar includes authentication by such authenticating agent.

                                        5

<PAGE>

An authenticating agent has the same rights as an Agent to deal with the Company
or an Affiliate.

         The  Debentures  shall be  issuable  only in  registered  form  without
coupons and only in denominations of $10,000 and any integral multiple thereof.

         SECTION 2.03. Registrar and Paying Agent. The Company shall maintain an
                       --------------------------
office or agency where  Debentures may be presented for registration of transfer
or for exchange  ("Registrar")  and an office or agency where  Debentures may be
presented for payment ("Paying  Agent").  The Registrar shall keep a register of
the Debentures  and of their transfer and exchange.  The Company may have one or
more  co-Registrars and one or more additional  Paying Agents.  The term "Paying
Agent"  includes  any  additional  paying  agent.  The  Company  or  any  of its
Subsidiaries may act as Paying Agent, Registrar or co-Registrar.

         The Company shall enter into an appropriate  agency  agreement with any
Agent  not a  party  to  this  Indenture.  The  agreement  shall  implement  the
provisions of this Indenture that relate to such Agent and shall incorporate the
provisions  of the TIA.  The  Company  shall  notify the Trustee of the name and
address of any such  Agent.  If the Company  fails to  maintain a  Registrar  or
Paying Agent, upon notification and delivery of necessary  records,  the Trustee
shall  act as  such  and  shall  be  entitled  to  appropriate  compensation  in
accordance with the provisions of Section 7.07.

         SECTION  2.04.  Paying Agent to Hold Money in Trust.  The Company shall
                         -----------------------------------
require  each Paying  Agent to agree in writing to hold in trust for the benefit
of the  Debentureholders  or the Trustee all money held by the Paying  Agent for
the payment of principal of or interest on the  Debentures,  and the Company and
the Paying  Agent shall each notify the Trustee of any default by the Company in
making any such  payment.  While any such  default  continues,  the  Trustee may
require  a  Paying  Agent to pay all  money  held by it to the  Trustee.  If the
Company or a Subsidiary  acts as Paying Agent,  it shall segregate the money and
hold it as a separate  trust fund.  The Company at any time may require a Paying
Agent to pay all  money  held by it to the  Trustee.  Upon such  payment  to the
Trustee the Paying Agent shall have no further liability for the money delivered
to the Trustee.

         SECTION 2.05.  Debentureholder  Lists. The Trustee shall preserve in as
                        ----------------------
current a form as is reasonably practicable the most recent list available to it
of the  names and  addresses  of  Debentureholders.  If the  Trustee  is not the
Registrar,  the Company  shall  furnish to the Trustee at least every six months
and at such other times as the Trustee may request in writing,  a list,  in such
form and as of such date as the Trustee may reasonably require, of the names and
addresses of Debentureholders.

         SECTION 2.06.  Access of Information to  Debentureholders.  Within five
                        ------------------------------------------
business days after the receipt by the Trustee of a written  application  by any
three or more Debentureholders stating that the applicants desire to communicate
with other  Debentureholders with respect to their rights under the Indenture or
under the Debentures,  and accompanied by a form of proxy or other communication

                                        6

<PAGE>

which such applicants  proposed to transmit,  and by reasonable  proof that each
such  applicant  has  owned a  Debenture  for a period  of at least  six  months
preceding  the date of such  application,  the Trustee  shall,  at its election,
either:

     (a) afford to such  applicants  access to all information in the possession
of the Trustee as to the names and addresses of the Debentureholders; or

     (b) inform such applicants as to the approximate number of Debentureholders
according  to the most  recent  information  so  furnished  or  received  by the
Trustee, and as to the approximate cost of mailing to such  Debentureholders the
form of proxy or other communication, if any, specified in such application.

         If the Trustee shall elect not to afford such applicants access to such
information,  the Trustee shall,  upon the written  request of such  applicants,
mail  to all  the  Debentureholders  copies  of  the  form  of  proxy  or  other
communication  which is  specified in the request,  with  reasonable  promptness
after a tender to the Trustee of the  material  to be mailed and of payment,  or
provision for the payment,  of the reasonable  expenses of such mailing,  unless
within five days after such tender,  the Trustee shall mail to such  applicants,
and file with the SEC  together  with a copy of the  material  to be  mailed,  a
written  statement  to the effect  that,  in the  opinion of the  Trustee,  such
mailing would be contrary to the best interests of the Debentureholders or would
be in violation of  applicable  law.  Such written  statement  shall specify the
basis of such opinion.

         The Company,  the Trustee, the Registrar and anyone else shall have the
protection of TIA ss.312.

         SECTION 2.07. Transfer and Exchange.  Where a Debenture is presented to
                       ---------------------
the  Registrar  or a  co-Registrar  with a request to register a  transfer,  the
Registrar shall register the transfer as requested if its  requirements for such
transaction  are met.  Where  Debentures  of one Maturity  are  presented to the
Registrar  or a  co-Registrar  with a  request  to  exchange  them  for an equal
principal amount of Debentures of other denominations of the same Maturity,  the
Registrar  shall make the  exchange as requested  if its  requirements  for such
transaction are met. Debentures  containing a particular CUSIP Number may not be
exchanged for Debentures  containing  another CUSIP Number.  To permit transfers
and exchanges,  upon surrender of any Debenture for  registration of transfer at
the office or agency  maintained  pursuant to Section  2.03,  the Company  shall
execute  and the  Registrar  shall  authenticate  Debentures  to be issued  upon
transfer or exchange. If so requested by the Registrar, all Debentures presented
for  exchange,   registration  of  transfer,  redemption  or  payment  shall  be
accompanied  by a written  instrument  of transfer in form  satisfactory  to the
Registrar,  duly  executed  by the  registered  owner  or by his  attorney  duly
authorized in writing.  Any exchange or transfer  shall be without charge to the
Debentureholder,   except  that  the  Company  may  require   payment  from  the
Debentureholder  of a sum  sufficient  to cover  any tax or  other  governmental
charge that may be imposed in relation thereto. The Registrar shall not transfer
or exchange any Debenture or portion of a Debenture selected for redemption,  or
transfer or exchange any  Debentures  for a period of 15 days before a selection
of Debentures to be redeemed.

                                       7

<PAGE>

SECTION 2.08. Replacement  Debentures.  If  a  mutilated  Debenture  is
                       -----------------------
surrendered  to the  Registrar  or if the Holder of a Debenture  claims that the
Debenture has been lost,  destroyed or wrongfully taken, the Company shall issue
and the Registrar shall authenticate a replacement Debenture if the requirements
of the Company or the Registrar for such  transaction are met. The Registrar may
require an  indemnity  bond which  shall be  sufficient  in the  judgment of the
Registrar and the Company to protect the Company,  the Trustee,  the  Registrar,
any Agent or any authenticating agent from any loss which any of them may suffer
if a Debenture is replaced, destroyed, lost or wrongfully taken. The Company may
charge  such  Holder  for  its  expenses  in  replacing  such  Debenture.  Every
replacement Debenture is an additional obligation of the Company.

         SECTION 2.09.  Outstanding  Debentures.  Debentures  outstanding at any
                        -----------------------
time are all Debentures authenticated by the Registrar except for those canceled
by it,  those  delivered  to it for  cancellation,  and those  described in this
Section 2.09. A Debenture does not cease to be  outstanding  because the Company
or one of its Subsidiaries holds the Debenture.

         If a Debenture is replaced  pursuant to Section  2.08,  it ceases to be
outstanding  unless the Trustee or the Registrar  receives proof satisfactory to
it that the replaced Debenture is held by a bona fide purchaser.

         If the Paying Agent (other than the Company or a Subsidiary) holds on a
redemption date or maturity date money  sufficient to pay Debentures  payable on
that date, then on and after that date such Debentures  shall be deemed to be no
longer outstanding and interest on them shall cease to accrue.

         SECTION 2.10. Treasury  Debentures.  In determining whether the Holders
                       --------------------
of the required amount of Debentures have concurred in any direction,  waiver or
consent,  and for the purpose of calculating and making payments of interest and
selecting  Debentures  for  redemption,  Debentures  owned by the  Company or an
Affiliate  shall be  disregarded,  except that for the  purposes of  determining
whether the Trustee  shall be protected in relying on any  direction,  waiver or
consent,  only  Debentures  the Trustee  actually knows are so owned shall be so
disregarded.

         SECTION 2.11.  Temporary  Debentures.  Until definitive  Debentures are
                        ---------------------
ready for delivery,  the Company may prepare and the Trustee shall  authenticate
temporary Debentures. Temporary Debentures shall be substantially in the form of
definitive  Debentures  but may  have  variations  that  the  Company  considers
appropriate for temporary  Debentures.  Without  unreasonable delay, the Company
shall  prepare and the  Trustee  shall  authenticate  definitive  Debentures  in
exchange for temporary  Debentures.  Until such exchange,  temporary  Debentures
shall be entitled to the same rights,  benefits  and  privileges  as  definitive
Debentures.

         SECTION 2.12.  Cancellation.  The  Company  at  any  time  may  deliver
                        ------------
Debentures to the Trustee or the Registrar for  cancellation.  The Registrar and
Paying Agent shall forward to the Trustee any Debentures surrendered to them for
transfer,  exchange or payment.  The  Trustee or the  Registrar  and no one else

                                        8

<PAGE>

shall cancel and may destroy any Debentures surrendered for transfer,  exchange,
payment or cancellation and deliver a certificate of any such destruction to the
Company unless the Company  instructs the Trustee or the Registrar in writing to
deliver the Debentures to the Company.  The Company may not issue new Debentures
to replace,  or reissue or recall Debentures that it has (i) paid or redeemed or
(ii)  purchased  or  otherwise  acquired  and  delivered  to the  Trustee or the
Registrar for cancellation.

         SECTION 2.13. Defaulted Interest.  If the Company defaults in a payment
                       ------------------
of  interest  on the  Debentures,  it shall pay the  defaulted  interest  to the
persons who are  Debentureholders  on a  subsequent  special  record  date.  The
Company shall fix the special  payment date and special record date. The special
record  date shall be at least 15 days prior to the  special  payment  date.  At
least 15 days before such special  record date,  the Company  shall mail to each
Debentureholder  a notice that  states such  special  record  date,  the special
payment  date and the amount of defaulted  interest to be paid.  The Company may
pay defaulted interest in any other lawful manner. Pursuant to Section 4.01, the
Company shall pay interest on overdue  installments  of interest,  to the extent
lawful.

         SECTION 2.14. CUSIP Numbers.  The Company in issuing the Debentures may
                       -------------
use "CUSIP"  numbers (if then  generally in use),  and, if so, the Trustee shall
use  "CUSIP"  numbers in notices of  redemption  as a  convenience  to  Holders;
provided that any such notice may state that no representation is made as to the
correctness  of such numbers either as printed on the Debentures or as contained
in any notice of a redemption  and that reliance may be placed only on the other
identification numbers printed on the Debentures,  and any such redemption shall
not be affected by any defect in or omission of such numbers.

                                  ARTICLE THREE

                                   REDEMPTION
                                  -------------

         SECTION 3.01. Notices to Trustee. The Debentures may be redeemed at any
                       ------------------
time in whole or in part, at the  redemption  price(s) set forth in section 5 of
the  Debentures.  The  Registrar  may  select  for  redemption  portions  of the
principal  amount of  Debentures  that have  denominations  larger than $10,000.
Debentures  and  portions  of them it selects  shall be in amounts of $10,000 or
integral multiples of $10,000.  If the Company elects to redeem  Debentures,  it
shall notify the Registrar in writing of the  redemption  date, the CUSIP number
or numbers to be redeemed,  and the principal amount of each group of Debentures
to be redeemed. In the case of any such redemption, the Company shall deliver to
the Trustee an Officers'  Certificate  stating that such  redemption will comply
with the provisions for redemption contained herein and in the Debentures.

         The Company shall give each notice provided for in this Section 3.01 at
least 45 days before the  redemption  date  (except  that the Trustee may in its
sole discretion waive such notice period at any time).

                                       9

<PAGE>

SECTION 3.02. Selection  of  Debentures  to  be  Redeemed.  If less than all the
              -------------------------------------------
Debentures  containing  any  particular  CUSIP  number are to be  redeemed,  the
Registrar  shall  select the  Debentures  to be  redeemed  by such method as the
Registrar  shall deem fair and  appropriate or if the Debentures are listed on a
national securities exchange, in accordance with the rules of such exchange. The
Registrar  shall  make  the  selection  from  Debentures   outstanding  and  not
previously  called for  redemption.  Provisions of this  Indenture that apply to
Debentures called for redemption also apply to portions of Debentures called for
redemption.

         SECTION 3.03. Notice of Redemption.  At least 30 days but not more than
                       --------------------
90 days before a redemption  date, the Company shall mail a notice of redemption
by  first-class  mail to each Holder of  Debentures  to be redeemed.  The notice
shall identify the Debentures to be redeemed and shall state: (i) the redemption
date; (ii) the redemption price and accrued interest, if any; (iii) the name and
address of the Paying Agent;  (iv) that Debentures called for redemption must be
surrendered  to the Paying  Agent to collect  the  redemption  price and accrued
interest, if any; (v) that, unless the Company defaults in making the redemption
payments,  interest on Debentures  called for redemption ceases to accrue on and
after the  redemption  date and the only  remaining  right of the  Holders is to
receive  payment of the  redemption  price upon surrender to the Paying Agent of
the Debentures;  (vi) if any Debenture is being redeemed in part, the portion of
the  principal  amount  of such  Debenture  to be  redeemed  and (vii) the CUSIP
number, if any. At the Company's request and expense, the Trustee shall give the
notice of redemption in the Company's name.

         SECTION  3.04.  Effect  of  Notice  of  Redemption.  Once a  notice  of
                         ----------------------------------
redemption is mailed, Debentures called for redemption become due and payable on
the redemption  date and at the redemption  price.  Upon surrender to the Paying
Agent,  such  Debentures  shall be paid at the  redemption  price,  plus accrued
interest  to the  redemption  date,  but  interest  installments  for  which the
interest  payment date is on or prior to such redemption date will be payable to
the  Holders of record at the close of  business on the  relevant  record  dates
referred to in the Debentures.

         SECTION 3.05.  Deposit of Redemption  Price.  At least one Business Day
                        ----------------------------
prior to the  redemption  date,  the Company shall deposit with the Paying Agent
(or if the Company is its own Paying Agent,  shall  segregate and hold in trust)
immediately  available  funds  sufficient  to pay the  redemption  price of, and
accrued interest on, all Debentures to be redeemed on that date.

         SECTION  3.06.  Debentures  Redeemed  in  Part.  Upon  surrender  of  a
                         ------------------------------
Debenture that is redeemed in part,  the Registrar  shall  authenticate  for the
Holder,  at the expense of the Company,  a new  Debenture  of the same  Maturity
equal  in  principal   amount  to  the  unredeemed   portion  of  the  Debenture
surrendered.

                                       10

<PAGE>

                                  ARTICLE FOUR

                                    COVENANTS
                                  ------------

         SECTION  4.01.  Payment  of  Debentures.  The  Company  shall  pay  the
                         -----------------------
principal  of and  interest  on the  Debentures  on the dates and in the  manner
provided in the  Debentures.  An  installment  of principal or interest shall be
considered paid on the date due if the Paying Agent (other than the Company or a
Subsidiary)  holds on that date money  designated  for and sufficient to pay the
installment.  The  Company  shall  deposit  with the  Paying  Agent  immediately
available funds sufficient to pay the principal of or interest on the Debentures
at least one Business Day prior to the dates provided in the Debentures.

         The Company  shall pay  interest on overdue  principal  and interest on
overdue  installments of interest,  to the extent lawful,  at the rate per annum
borne by the Debentures.

         SECTION 4.02.  SEC Reports.  Within 5 days after the Company files with
                        -----------
the SEC  copies of its  annual  reports  and other  information,  documents  and
reports (or copies of such  portions of any of the  foregoing  as the SEC may by
rules  and  regulations  prescribe)  which it is  required  to file with the SEC
pursuant  to Section 13 or 15(d) of the  Securities  Exchange  Act of 1934,  the
Company shall file the same with the Trustee. The Company also shall comply with
the other provisions of TIA ss. 314(a).

         SECTION 4.03. Compliance Certificate.  The Company shall deliver to the
                       ----------------------
Trustee  within 120 days  after the end of each  fiscal  year of the  Company an
Officers' Certificate stating that a review of the activities of the Company has
been  made  under  the  supervision  of the  signing  Officers  with  a view  to
determining  whether a Default or Event of Default has  occurred  and whether or
not the  signers  know of any Default by the  Company in  performing  any of its
obligations  under  this  Indenture.  If they do  know  of such a  Default,  the
certificate shall describe all such Events of Default or Defaults,  their status
and what action the Company is taking or proposes to take with respect  thereto.
Upon  becoming  aware of any  Default or Event of  Default,  the  Company  shall
deliver an Officers'  Certificate to the Trustee specifying the Default or Event
of Default,  its status and the action the Company proposes to take with respect
thereto.

         SECTION 4.04. Limitation on Dividends and Stock Purchases.  The Company
                       -------------------------------------------
shall not declare or pay any  dividend or make any  distribution  on its Capital
Stock or to its shareholders  (other than dividends or distributions  payable in
its Capital Stock) or purchase, redeem or otherwise acquire or retire for value,
or permit any Subsidiary to purchase or otherwise acquire for value, any Capital
Stock of the Company  (collectively,  "Restricted  Payments") if, at the time of
such Restricted Payment, or after giving effect thereto, (i) an Event of Default
shall have occurred and be continuing, or (ii) a Default shall occur as a result
thereof; provided,  however, that the provisions of this limitation on dividends
shall not prevent (A) the payment of any dividend  within 60 days after the date
of declaration  thereof,  if at said date of declaration  such payment  complied
with  the  provisions of this limitation on dividends, or (B) the acquisition or

                                       11

<PAGE>

retirement of any shares of the Company's  Capital Stock by exchange for, or out
of the proceeds of the sale of shares of, its Capital Stock.

         SECTION 4.05. Pari Passu Indebtedness. There shall be no restriction on
                       -----------------------
the amount or type of  Indebtedness  of the Company which may be pari passu with
(i.e.  having no  priority  of  payment  over and not  subordinated  in right of
payment to) or subordinate to the Debentures.  At December 31, 2000, the Company
had  outstanding  the  following  Debentures  which  rank  pari  passu  with the
Debentures:   $9,000,000  aggregate  principal  amount  of  its  Series  5/12/95
Registered Floating Rate Redeemable Subordinated Debentures (the "Series 5/12/95
Debentures") which were issued pursuant to an Indenture dated as of June 1, 1995
by and  between  the  Company  and  The  Bank of New  York,$9,000,000  aggregate
principal  amount of its Series  10/19/95  Registered  Floating Rate  Redeemable
Subordinated  Debentures (the "Series  10/19/95  Debentures")  which were issued
pursuant to an Indenture dated as of November 1, 1995 by and between the Company
and The Bank of New York,  $10,000,000  aggregate principal amount of its Series
5/10/96 Registered Floating Rate Redeemable Subordinated Debentures (the "Series
5/10/96 Debentures") which were issued pursuant to an Indenture dated as of June
1, 1996 by and  between the  Company  and The Bank of New York,  and  $5,500,000
aggregate  principal  amount of its Series  10/15/96  Registered  Floating  Rate
Redeemable Subordinated Debentures (the "Series 10/15/96 Debentures") which were
issued  pursuant to an Indenture dated as of November 1, 1996 by and between the
Company and The Bank of New York, and $8,000,000  aggregate  principal amount of
its Series 4/30/97 Registered Floating Rate Redeemable  Subordinated  Debentures
(the "Series  4/30/97  Debentures"),  which were issued pursuant to an Indenture
dated as of May 1, 1997 by and between the Company and The Bank of New York, and
$5,400,000  aggregate  principal  amount of its Series 11/10/98  Debentures (the
"Series 11/10/98  Debentures")  which were issued pursuant to an Indenture dated
as of  December  1, 1998 by and  between  the  Company and The Bank of New York,
$6,500,000  aggregate  principal  amount of its Series 6/28/99  Debentures  (the
"Series 6/28/99 Debentures") which were issued pursuant to an Indenture dated as
of July 1,  1999 by and  between  the  Company  and The  Bank of New  York,  and
$3,750,000  aggregate  principal  amount of its Series 9/18/00  Debentures  (the
"Series 9/18/00 Debentures") which were issued pursuant to an Indenture dated as
of September  15, 2000 by and between the Company and The Bank of New York.  The
Bank of New York, the Trustee herein named,  presently serves as trustee for all
of the debentures which rank pari passu with the Debentures.

                                  ARTICLE FIVE

                              SUCCESSOR CORPORATION
                              ---------------------

         SECTION  5.01.  When the Company May Merge,  etc. The Company shall not
                         --------------------------------
consolidate with or merge with or into, or transfer all or substantially  all of
its assets to, any other person  unless (i) such other  person is a  corporation
organized or existing  under the laws of the United  States or a state  thereof,
(ii) such  surviving  person  (other  than the  Company)  expressly  assumes  by
supplemental  indenture all the obligations of the Company under the Debentures,
this Indenture and the other agreements related thereto, (iii) immediately after
such transaction no Default or Event of Default exists, and (iv) the Company has

                                       12

<PAGE>

delivered to the Trustee an Officers' Certificate and an Opinion of Counsel each
stating  that such  consolidation,  merger  or  transfer  and such  supplemental
indenture  comply with this  Article and that all  conditions  precedent  herein
provided for have been complied  with.  Thereafter  all such  obligations of the
predecessor corporation shall terminate.

                                   ARTICLE SIX

                              DEFAULTS AND REMEDIES
                              ---------------------

         SECTION 6.01.  Events of Default.  An "Event of Default" occurs if:
                        -----------------

                  (1) the  Company  defaults  in the  payment of interest on any
         Debenture  when  the  same  becomes  due and  payable  and the  default
         continues for a period of 30 days, whether or not such payment shall be
         prohibited by the provisions of Article Ten;

                  (2) the Company  defaults in the payment of  principal  of any
         Debenture  when the same  becomes  due and  payable at  maturity,  upon
         redemption  or  otherwise,   whether  or  not  such  payment  shall  be
         prohibited by the provisions of Article Ten;

                  (3) the  Company  fails  to  comply  with  any  of  its  other
         agreements  in  the  Debentures  or  this  Indenture  and  the  default
         continues for the period and after the notice specified below;

                  (4) the  Company  pursuant  to or within  the  meaning  of any
         Bankruptcy  Law:  (A)  commences a voluntary  case or  proceeding,  (B)
         consents  to  the  entry  of  an  order  for  relief  against  it in an
         involuntary  case or proceeding,  (C) consents to the  appointment of a
         Custodian (as defined herein) of it or for all or substantially  all of
         its property,  or (D) makes a general assignment for the benefit of its
         creditors;

                  (5) a court  of  competent  jurisdiction  enters  an  order or
         decree under any  Bankruptcy  Law that:  (A) is for relief  against the
         Company in an involuntary case or proceeding,  (B) appoints a Custodian
         of the Company or for all or substantially all of its property,  or (C)
         orders the  liquidation  of the Company,  and in each case the order or
         decree remains unstayed and in effect for 60 days.

         The term  "Bankruptcy  Law" means  Title 11,  U.S.  Code or any similar
Federal or state law for the relief of debtors.  The term "Custodian"  means any
receiver, trustee, assignee, liquidator or similar official under any Bankruptcy
Law.

         A default under clause (3) is not an Event of Default until the Trustee
or the  Holders  of at least 25% in  principal  amount  of the then  outstanding
Debentures  notify the Company of the default and the Company  does not cure the
default within 60 days after receipt of the notice.  The notice must specify the
default,  demand  that  it be remedied and state that the notice is a "Notice of

                                       13

<PAGE>

Default".  If the  Holders  of  25%  in  principal  amount  of  the  outstanding
Debentures  request the Trustee to give such notice on their behalf, the Trustee
shall do so.

         SECTION  6.02.  Acceleration.  If any Event of Default  (other  than an
                         ------------
Event of Default  specified in Section 6.01(4) or (5)) occurs and is continuing,
the  Trustee  by  notice  to the  Company,  or the  Holders  of at least  25% in
principal amount of the outstanding  Debentures by notice to the Company and the
Trustee,  may (but shall not be obligated  to) declare the  principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Upon
such   declaration  such  principal  and  interest  shall  be  due  and  payable
immediately.  If an Event of Default specified in Section 6.01(4) or (5) occurs,
all unpaid  principal and accrued  interest on the Debentures  then  outstanding
shall  ipso  facto  become  and be  immediately  due  and  payable  without  any
declaration or other act on the part of the Trustee or any Debentureholder.  The
Holders of a majority  in  principal  amount of the  outstanding  Debentures  by
notice to the Trustee may rescind an  acceleration  and its  consequences if all
existing  Events of  Default  have been cured or waived,  except  nonpayment  of
principal or interest  that has become due solely  because of the  acceleration,
and if the  rescission  would not conflict with any judgment or decree.  No such
rescission  shall affect any subsequent  Default or impair any right  consequent
thereto.

         SECTION  6.03.  Other  Remedies.  If an Event of Default  occurs and is
                         ---------------
continuing,  the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal  of or interest on the  Debentures
or to  enforce  the  performance  of any  provision  of the  Debentures  or this
Indenture.

         The Trustee may maintain a  proceeding  even if it does not possess any
of the Debentures or does not produce any of them in the proceeding.  A delay or
omission by the Trustee or any Debentureholder in exercising any right or remedy
accruing  upon an Event of  Default  shall  not  impair  the  right or remedy or
constitute  a waiver of or  acquiescence  in the Event of Default.  No remedy is
exclusive of any other remedy. All available remedies are cumulative.

         SECTION  6.04.  Waiver of Past  Defaults.  Subject to Sections 6.07 and
                         ------------------------
9.02,  the  Holders  of a  majority  in  principal  amount  of  the  outstanding
Debentures  by  notice  to  the  Trustee  may  waive  a  past  Default  and  its
consequences,  except a Default under Section  6.01(1) or (2). When a Default is
so waived, it shall be deemed cured and ceases.

         SECTION  6.05.  Control by  Majority.  The  Holders  of a  majority  in
                         --------------------
principal amount of outstanding Debentures may direct the time, method and place
of  conducting  any  proceeding  for any  remedy  available  to the  Trustee  or
exercising any trust or power conferred on the Trustee;  provided,  however: (i)
such  direction  shall  not be in  conflict  with any  rule of law or with  this
Indenture;  (ii) the  Trustee  shall not  determine  that the action so directed
would be  unjustly  prejudicial  to the rights of any Holder not taking  part in
such direction;  (iii) the Trustee shall have the right to decline to follow any
such  direction if the Trustee,  being advised by counsel,  determines  that the
action so  directed  may not  lawfully  be taken or if the Trustee in good faith
shall  determine  that the  proceedings so directed would involve it in personal
liability;  or (iv) the Trustee may take any other action  deemed  proper by the
Trustee  which  is  not  inconsistent with such direction. In the event that the

                                       14

<PAGE>

Trustee  takes any action or follows any direction  pursuant to this  Indenture,
the Trustee shall be entitled to indemnification  satisfactory to it in its sole
discretion  against  all risk,  loss or expense  caused by taking such action or
following such direction.

         SECTION 6.06. Limitation of Suits. A Debentureholder may not pursue any
                       -------------------
remedy with respect to this Indenture or the Debentures  unless:  (i) the Holder
gives to the Trustee written notice of a continuing  Event of Default;  (ii) the
Holders of at least 25% in principal amount of the outstanding Debentures make a
written  request  to the  Trustee  to pursue the  remedy;  (iii) such  Holder or
Holders offer and, if requested,  provide to the Trustee  indemnity and security
satisfactory  to the Trustee  against any loss,  liability or expense;  (iv) the
Trustee  does not comply  with the request  within 60 days after  receipt of the
request and the offer and, if  requested,  provision of indemnity  and security;
and (v) during such 60-day period the Holders of a majority in principal  amount
of the  Debentures  do not give the Trustee a direction  inconsistent  with such
request.

         A Debentureholder may not use this Indenture to prejudice the rights of
another  Debentureholder  or to obtain a  preference  or priority  over  another
Debentureholder.

         SECTION 6.07. Rights of Holders to Receive Payment.  Subject to Article
                       ------------------------------------
Ten and notwithstanding any other provisions of this Indenture, the right of any
Holder of a Debenture  to receive  payment of  principal  of and interest on the
Debenture,  on or after the respective due dates expressed in the Debenture,  or
to  bring  suit  for the  enforcement  of any  such  payment  on or  after  such
respective  dates,  shall not be impaired or affected without the consent of the
Holder,  except as to a  postponement  of an interest  payment  consented  to as
provided in clause (ii) of Section 9.02.

         SECTION  6.08.  Collection  Suit by Trustee.  If an Event of Default in
                         ---------------------------
payment of interest or principal  specified in Section 6.01(1) or (2) occurs and
is continuing,  the Trustee may recover  judgment in its own name and as trustee
of an express  trust  against the Company for the whole amount of principal  and
interest  remaining unpaid,  together with interest on overdue principal and, to
the extent  that the  payment of such  interest  is lawful,  interest on overdue
installments of interest.

         SECTION  6.09.  Trustee  May File Proof of Claim.  The Trustee may file
                         --------------------------------
such  proofs of claim  and other  papers or  documents  as may be  necessary  or
advisable  in order to have the claims of the Trustee  (including  any claim for
compensation,  expenses,  disbursements and advances of the Trustee,  its agents
and counsel) and any predecessor Trustee and the Debentureholders allowed in any
judicial  proceedings  relative to the Company,  its  creditors or its property.
Nothing herein  contained  shall be deemed to authorize the Trustee to authorize
or  consent to or accept or adopt on behalf of any  Debentureholder  any plan of
reorganization,  arrangement, adjustment or composition affecting the Debentures
or the rights of any Holder  thereof,  or to  authorize  the  Trustee to vote in
respect of the claim of any Debentureholder in any such proceedings.

                                       15

<PAGE>

SECTION 6.10. Priorities.  If  the  Trustee  collects any money pursuant to this
              ----------
Article Six, it shall pay out the money in the following  order:  (i) first,  to
the Trustee and any predecessor  Trustee for costs and expenses of collection of
such  monies  and for  compensation  payable  to the  Trustee  or its agents and
counsel  and  all  other  expenses,  liabilities,  advances  and  other  amounts
incurred,  made or due under  Section  7.07;  (ii) second,  to holders of Senior
Indebtedness  of the Company to the extent required by Article Ten; (iii) third,
to  Debentureholders  for amounts due and unpaid on the Debentures for principal
and interest,  ratably, without preference or priority of any kind, according to
the  amounts due and  payable on the  Debentures  for  principal  and  interest,
respectively; and (iv) fourth, to the Company. The Trustee may fix a record date
and payment date for any payment to Debentureholders pursuant to this Section.

         SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of
                       ---------------------
any right or remedy under this  Indenture or in any suit against the Trustee for
any action  taken or omitted by it as  Trustee,  a court in its  discretion  may
require the filing by any party  litigant in the suit of an  undertaking  to pay
the costs of the suit,  and the court in its  discretion  may assess  reasonable
costs,  including reasonable  attorneys' fees, against any party litigant in the
suit,  having due regard for the merits and good faith of the claims or defenses
made by the party  litigant.  This  Section 6.11 does not apply to a suit by the
Trustee,  a suit by a Holder  pursuant  to Section  6.07 or a suit by Holders of
more than 10% in principal amount of the outstanding Debentures.

                                  ARTICLE SEVEN

                                     TRUSTEE
                                  -------------

         SECTION 7.01.  Duties of Trustee.
                        -----------------

         (a) If an Event of Default has occurred and is continuing,  the Trustee
shall  exercise such of the rights and powers vested in it by this Indenture and
use the same  degree of care and  skill in their  exercise  as a prudent  person
would exercise or use under the circumstances in the conduct of his own affairs.

         (b)  Except  during the  continuance  of an Event of  Default;  (i) the
Trustee need perform only those duties that are  specifically  set forth in this
Indenture and no others;  and (ii) in the absence of bad faith on its part,  the
Trustee  may  conclusively  rely,  as to the  truth  of the  statements  and the
correctness of the opinions  expressed  therein,  upon  certificates or opinions
furnished to the Trustee and conforming to the  requirements  of this Indenture;
the Trustee,  however,  shall examine the certificates and opinions submitted in
accordance  with Section  11.03 to determine  whether or not they conform to the
requirements of this Indenture.

         (c)  The  Trustee  may  not be  relieved  from  liability  for  its own
negligent  action,  its  own  negligent  failure  to  act  or  its  own  willful
misconduct,  except  that:  (i) this  paragraph  does not  limit  the  effect of
paragraph (b) of this Section 7.01; (ii) the Trustee shall not be liable for any
error of  judgment  made in good faith by a  Responsible  Officer,  unless it is
proved that the Trustee was negligent in ascertaining  the pertinent  facts; and

                                       16

<PAGE>

(iii) the  Trustee  shall not be liable  with  respect to any action it takes or
omits to take in good  faith  in  accordance  with a  direction  received  by it
pursuant to Section 6.05.

         (d) Every  provision of this  Indenture  that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01.

         (e) The Trustee may refuse to perform any duty or exercise any right or
power or risk its own funds or otherwise incur any financial liability unless it
receives  indemnity  satisfactory  to it against any and all loss,  liability or
expense.

         (f) The  Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree with Company.

         (g) Money  held in trust by the  Trustee  need not be  segregated  from
other funds except to the extent required by law.

         SECTION 7.02.  Rights of Trustee.  Subject to Section 7.01:
                        -----------------

         (a) The Trustee may rely on any  document  believed by it to be genuine
and to have been signed or presented by the proper person.  The Trustee need not
investigate any fact or matter stated in the document.

         (b) Before the Trustee acts or refrains from acting,  it may require an
Officers'  Certificate  or an Opinion of Counsel,  which shall  conform with the
provisions of Section  11.04.  The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on such certificate or opinion.

         (c) The Trustee may act through agents and shall not be responsible for
the misconduct or negligence of any agent appointed with due care.

         (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes  to be  authorized  or within its rights or
powers.

         (e) The Trustee may consult  with  counsel and the advice or opinion of
such counsel as to matters of law shall be full and complete  authorization  and
protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance  with the advise or opinion of such
counsel.

         (f) The Trustee  shall be under no  obligation  to exercise  any of the
rights  or  powers  vested  in it by this  Indenture  at the  request,  order or
direction of any of the Holders of the Debentures, pursuant to the provisions of
this Indenture,  unless such Holders shall have offered to the Trustee  security
and indemnity,  satisfactory to the Trustee in its sole discretion,  against all
costs,  expenses and liabilities  which might be incurred by the Trustee therein
or thereby.

                                       17

<PAGE>

         (g) The Trustee shall not be obligated to make any  investigation  into
the  facts  or  matters  stated  in  any  resolution,   certificate,  statement,
instrument,  opinion, report, notice, request, direction,  consent, order, bond,
debenture or any other paper or document; provided, however, the Trustee, in its
discretion,  may make such further inquiry or  investigation  into such facts or
matters as it may see fit. Nothing  contained in this Indenture shall create any
liability to the Trustee in the event it elects to make or not to make a further
inquiry or investigation to which it is entitled as aforesaid.

         SECTION  7.03.  Individual  Rights  of  Trustee.  The  Trustee  in  its
                         -------------------------------
individual  or any other  capacity may become the owner or pledgee of Debentures
and may otherwise deal with the Company or its  Affiliates  with the same rights
it would  have if it were not the  Trustee.  Any Agent may do the same with like
rights. The Trustee, however, must comply with Sections 7.10 and 7.11.

         SECTION  7.04.   Trustee's   Disclaimer.   The  Trustee  shall  not  be
                          ----------------------
responsible  for and makes no  representation  as to the validity or adequacy of
this Indenture or the Debentures;  it shall not be accountable for the Company's
use of the proceeds from the Debentures;  and, subject to any liabilities  which
may be found to exist under the provisions of the Federal securities laws, shall
not be  responsible  for any  statement of the Company in this  Indenture or any
document  issued in connection  with the sale of the Debentures or any statement
in the  Debentures  other  than  its  certificate  of  authentication  or in any
prospectus  used in  connection  with the sale of such  Debentures,  other  than
statements provided in writing by the Trustee for use in such prospectus.

         SECTION 7.05. Notice of Defaults. If a Default occurs and is continuing
                       ------------------
and  if  it  is  known  to  the  Trustee,   the  Trustee   shall  mail  to  each
Debentureholder  notice of the Default within 90 days after it occurs,  or if it
becomes known to the Trustee after such 90 days, as soon as practicable after it
becomes  known to the  Trustee.  Except in the case of a Default  in  payment of
principal of or interest on any Debenture or any amounts due on redemption,  the
Trustee may  withhold the notice if and so long as the board of directors of the
Trustee,  the executive or any trust committee of such board and/or  Responsible
Officers of the Trustee in good faith  determine(s)  that withholding the notice
is in the interest of Debentureholders.

         SECTION 7.06. Reports by Trustees to Holders. Within 60 days after each
                       ------------------------------
May  15,   beginning  with  May  15,  2000,  the  Trustee  shall  mail  to  each
Debentureholder  a brief report dated as of such May 15 that  complies  with TIA
ss. 313(a). The Trustee also shall comply with TIA ss. 313(b), (c) and (d).

         A  copy  of  each  such   report  at  the  time  of  its   mailing   to
Debentureholders  shall  be  filed by the  Company  with the SEC and each  stock
exchange on which the  Debentures  are listed.  The  Trustee  shall  furnish the
Company  with copies of such reports  sufficiently  in advance of its mailing to
Debentureholders  to permit the Company to make such filings in a timely manner.
The Company shall notify the Trustee when the Debentures are listed on any stock
exchange.

         l

                                       18

<PAGE>

SECTION 7.07. Compensation and Indemnity.  The Company shall pay to the  Trustee
              --------------------------
such  compensation  for its  services as the Company and the Trustee  shall from
time to time agree in writing. The Trustee's  compensation hereunder shal not be
limited by any law on compensation  relating to the trustee of an express trust.
The  Company   shall   reimburse   the  Trustee  upon  request  for   reasonable
disbursements,  advances and expenses  incurred or made by it in connection with
its duties  hereunder.  The Company shall  indemnify each of the Trustee and any
predecessor  Trustee against any loss or liability  incurred by it in connection
with  the  administration  of this  trust  and  the  performance  of its  duties
hereunder,  including the reasonable  expenses and attorneys'  fees of defending
itself  against any claim of  liability  arising  hereunder.  The Company  shall
defend any claim  against  the  Trustee of which the  Company  has  notice.  The
Trustee may have  separate  counsel,  and if it does,  the Company shall pay the
reasonable fees and expenses of such counsel. The Company need not reimburse any
expenses  or  indemnify  against any loss or  liability  incurred by the Trustee
through the Trustee's negligence or bad faith.

         The obligations of the Company under this Section 7.07 to indemnify and
compensate  the  Trustee to pay or  reimburse  the  Trustee  for such  expenses,
disbursements,  and  advances  shall  constitute  Indebtedness.  To  secure  the
Company's  payment  obligations  in this Section,  the Trustee shall have a lien
prior to the  Debentures  on all  money or  property  held or  collected  by the
Trustee, except that held in trust to pay principal of or interest on particular
Debentures.

         When  the  Trustee  incurs  expenses  or  renders  services  after  the
occurrence  of an Event of  Default  specified  in Section  6.01(4) or (5),  the
expenses  and the  compensation  for the  services  are  intended to  constitute
expenses of administration under any Bankruptcy Law.

         The  obligations  of the Company  under this Section 7.07 shall survive
the satisfaction and discharge of this Indenture.

         SECTION 7.08.  Replacement of Trustee.  A resignation or removal of the
                        ----------------------
Trustee and the appointment of a successor  Trustee shall become  effective only
upon the  successor  Trustee's  acceptance  of  appointment  as provided in this
Section.  The Trustee may resign by so notifying  the Company.  The Holders of a
majority  in  principal  amount of the  outstanding  Debentures  may  remove the
Trustee by so notifying the Trustee and the Company, and may appoint a successor
Trustee with the Company's  consent.  The Company may remove the Trustee if: (i)
the Trustee  fails to comply with Section  7.10;  (ii) the Trustee is adjudged a
bankrupt or an insolvent;  (iii) a receiver or other public officer takes charge
of the Trustee or its property; or (iv) the Trustee becomes incapable of acting.

         If the  Trustee  resigns or is  removed  or if a vacancy  exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.

         A  successor   Trustee shall  deliver  a  written  acceptance  of   its
appointment to the retiring Trustee and to the Company.  Immediately thereafter,
the retiring  Trustee  shall  transfer all property held by it as Trustee to the
successor  Trustee  (subject  to the lien  provided  for in Section  7.07),  the

                                       19

<PAGE>

resignation or removal of the retiring Trustee shall become  effective,  and the
successor  Trustee  shall have all the rights,  powers and duties of the Trustee
under this Indenture. A successor Trustee shall mail notice of its succession to
each Debentureholder.

         If a successor  Trustee  does not take office  within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holders of a majority in  principal  amount of the  outstanding  Debentures  may
petition any court of competent  jurisdiction for the appointment of a successor
Trustee.

         If the Trustee fails to comply with Section 7.10,  any  Debentureholder
may petition any court of competent  jurisdiction for the removal of the Trustee
and the  appointment  of a successor  Trustee,  provided,  however,  that if the
Trustee shall fail to comply with TIA ss. 310(b)(i),  only a Debentureholder who
has been a bona fide  holder of the  Debentures  for at least six months and has
requested  the Trustee in writing to comply with such  provision may so petition
such court.

         SECTION  7.09.  Successor  Trustee  by  Merger,  etc.  If  the  Trustee
                         ------------------------------------
consolidates with, merges or converts into or transfers all or substantially all
of  its  corporate  trust  business  to,  another  corporation,   the  successor
corporation without any further act shall be the successor Trustee.

         SECTION 7.10. Eligibility;  Disqualification.  There shall at all times
                       ------------------------------
be a trustee hereunder which shall be a corporation organized and doing business
under the laws of the United  States or of any state  thereof  authorized  under
such laws to exercise corporate trust powers, shall be subject to supervision or
examination by Federal or state authority and shall at all times have a combined
capital and surplus of at least $1,000,000. If such trustee publishes reports of
condition  at least  annually,  pursuant to law or to the  requirements  of said
supervisory or examining authority,  then for the purposes of this Section 7.10,
the  combined  capital  and  surplus of such  trustee  shall be deemed to be its
combined  capital and surplus as set forth in its most recent  published  annual
report of condition.

         This   Indenture   shall  always  have  a  trustee  who  satisfies  the
requirements of TIA ss. 310(a)(1) and (2). The Trustee shall comply with TIA ss.
310(b) and, for purposes of TIA ss.310(b)(1),  the following  indentures satisfy
the  requirements  for such  exclusion  set forth in TIA ss.  310(b)(1)(i):  the
Indenture  dated as of June 1, 1995,  by and between the Company and The Bank of
New York, as Trustee, the Indenture dated as of November 1, 1995, by and between
the Company and The Bank of New York, as Trustee, the Indenture dated as of June
1, 1996,  by and between the Company and The Bank of New York,  as Trustee,  the
Indenture  dated as of November 1, 1996, by and between the Company and The Bank
of New York, as Trustee,  the Indenture  dated as of May 1, 1997, by and between
the Company  and The Bank of New York,  as Trustee,  the  Indenture  dated as of
December  1, 1998,  by and  between  the  Company  and the Bank of New York,  as
Trustee,  the Indenture dated as of July 1, 1999, by and between the Company and
The Bank of New York, as Trustee,  and the  Indenture  dated as of September 15,
2000, by and between the Company and The Bank of New York, as Trustee.  The Bank
of New York presently serves as trustee under each such indenture.

                                       20

<PAGE>

         SECTION 7.11.  Preferential  Collection of Claims  Against the Company.
                        -------------------------------------------------------
The  Trustee  shall  be  subject  to TIA  ss.  311(a),  excluding  any  creditor
relationship  arising as provided in TIA ss. 311(b).  A Trustee who has resigned
or been removed shall be subject to TIA ss. 311(a) to the extent indicated.

         SECTION 7.12. Paying Agents.  The Company shall cause each Paying Agent
                       -------------
other  than  the  Trustee  to  execute  and  deliver  to it and the  Trustee  an
instrument  in which such Agent  shall  agree with the  Trustee,  subject to the
provisions of this Section 7.12;  (i) that it will hold sums held by it as Agent
for the payment of principal of or interest on the Debentures (whether such sums
have been paid to it by the  Company  or by any  obligor on the  Debentures)  in
trust for the  benefit of Holders  of the  Debentures;  (ii) that it will at any
time during the  continuance of any Event of Default,  upon written request from
the Trustee,  deliver to the Trustee all sums so held in trust by it; (iii) that
it will give the  Trustee  written  notice  within  three  Business  Days of any
failure of the Company (or by any obligor on the  Debentures)  in the payment of
any  installment of the principal of or interest on the Debentures when the same
shall be due and payable;  and (iv) that it will comply with the  provisions  of
the TIA applicable to it.

                                  ARTICLE EIGHT

                             DISCHARGE OF INDENTURE
                             ----------------------

         SECTION 8.01. Termination of the Company's Obligations. The Company may
                       ----------------------------------------
terminate all of its obligations  under the Debentures and this Indenture if all
Debentures previously authenticated and delivered (other than destroyed, lost or
stolen  Debentures  which have been replaced or paid) have been delivered to the
Trustee for cancellation or if:

                  (1) the  Debentures  mature within one year or all of them are
         to  be  called  for  redemption  within  one  year  under  arrangements
         satisfactory to the Trustee for giving the notice of redemption;

                  (2) the Company irrevocably deposits in trust with the Trustee

         money  or  direct   non-callable   obligations   of,  or   non-callable
         obligations  guaranteed by, the United States for the  payment of which
         guarantee or obligation the full faith and credit of  the United States
         is  pledged  ("U.S.  Government   Obligations"),    sufficient  to  pay
         principal of and interest on the outstanding Debentures  to maturity or
         redemption,  as the case  may be,  and  immediately  after  making  the
         deposit,   the   Company  shall  give  notice  of  such  event  to  the
         Debentureholders;  provided, however, that  if such irrevocable deposit
         in trust with the Trustee of cash or  U.S.  Government  Obligations  is
         made,  the  Company  shall have  delivered  to  the  Trustee  either an
         Opinion  of  Counsel  with  no  material  qualifications  in  form  and
         substance  satisfactory  to  the Trustee to the effect that  Holders of
         the Debentures (i) will  not recognize income, gain or loss for Federal
         income tax purposes as a  result of such  deposit  (and the  defeasance
         contemplated  in  connection  therewith)  and  (ii) will be  subject to
         Federal  income tax on the same  amounts and  in the same manner and at
         the same  times  as would  have  been  the  case if  such  deposit  and
         defeasance had not occurred, or

                                       21

<PAGE>

         an  applicable  favorable  ruling to that  effect is  received  from or
         published by the Internal Revenue Service;

                  (3) the  Company  has  paid or caused to be paid all sums then
         payable by the Company  to the Trustee hereunder as of the date of such
         deposit; and

                  (4) the Company  has  delivered  to the  Trustee an  Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent   provided  for  herein  relating  to  the  satisfaction  and
         discharge of this  Indenture  have been  complied  with.  The Company's
         obligations  in  paragraph 9 of the  Debentures  and in Sections  2.03,
         2.04, 2.05, 2.07,  2.08,  4.01, 7.07 and 8.03,  however,  shall survive
         until  the  Debentures  are  no  longer  outstanding.  Thereafter,  the
         Company's obligations in such paragraph 9 and in Sections 7.07 and 8.03
         shall survive.

         After such irrevocable deposit and delivery of an Officers' Certificate
and Opinion of Counsel  pursuant to this Section 8.01,  the Trustee upon request
shall  acknowledge in writing the discharge of the Company's  obligations  under
the  Debentures  and this  Indenture  except  for  those  surviving  obligations
specified above.

         SECTION  8.02.  Application  of Trust Money.  The Trustee shall hold in
                         ---------------------------
trust  money and U.S.  Government  Obligations  deposited  with it  pursuant  to
Section 8.01. It shall apply the deposited money through the Paying Agent and in
accordance  with this  Indenture  to the payment of principal of and interest on
Debentures.  Money and U.S. Government Obligations so held in trust shall not be
subject to Article Ten.

         SECTION 8.03.  Repayment to the Company.  Subject to Section 7.07,  the
                        ------------------------
Trustee and the Paying Agent shall  promptly pay to the Company upon request any
excess money or securities  held by them at any time. The Trustee and the Paying
Agent  shall pay to the  Company  upon  request  any money  held by them for the
payment of principal or interest that remains unclaimed for two years,  provided
such request is made by the Company within one year after the expiration of such
two year period that such money remains unclaimed. Thereafter, the Company shall
have no right to request  repayment of unclaimed money, and such unclaimed money
shall be held and disposed of by the Trustee in accordance  with applicable law.
The Trustee and the Paying  Agent shall have no right to request or require that
the Company accept repayment of any unclaimed money.

         The  Trustee or the Paying  Agent,  before  being  required to make any
repayment to the Company of unclaimed  money,  may at the expense of the Company
mail to each Holder who has failed to claim a payment of  interest or  principal
which is due,  notice that such money remains  unclaimed and that,  after a date
specified  therein  (which  shall not be less than 30 days from the date of such

                                       22

<PAGE>

mailing),  any unclaimed  balance of such money then remaining will be repaid to
the Company.  After  payment to the Company,  Debentureholders  entitled to such
money  must  look  to the  Company  for  payment  as  general  creditors  unless
applicable  abandoned  property law designates another person, and all liability
of the Trustee or Paying Agent with respect to such money shall thereupon cease.

                                  ARTICLE NINE

                       AMENDMENTS, SUPPLEMENTS AND WAIVERS
                       -----------------------------------

         SECTION 9.01. Without Consent of Holders. The Company, with the consent
                       --------------------------
of Trustee,  may amend or supplement  this Indenture or the  Debentures  without
notice  to or  consent  of any  Debentureholder:  (i)  to  cure  any  ambiguity,
omission, defect or inconsistency; (ii) to comply with Section 5.01; or (iii) to
make  any   change   that  does  not   adversely   affect   the  rights  of  any
Debentureholder.   The  Trustee  shall  not  be  obligated  to  enter  into  any
supplemental  indenture which affects its own rights, duties or immunities under
this Indenture.

         SECTION 9.02. With Consent of Holders. The Company, with the consent of
                       -----------------------
the Trustee,  may amend or supplement  this Indenture or the Debentures  without
notice to any Debentureholder, but with the written consent of the Holders of at
least a majority in principal amount of the outstanding Debentures.  The Holders
of a  majority  in  principal  amount of the  outstanding  Debentures  may waive
compliance by the Company with any provision of this Indenture or the Debentures
without   notice  to  any   Debentureholder.   Without   the   consent  of  each
Debentureholder affected, however, an amendment, supplement or waiver, including
a waiver  pursuant to Section 6.04, may not: (i) reduce the amount of Debentures
whose  Holders must consent to an amendment,  supplement or waiver;  (ii) reduce
the rate of or extend the time for payment of interest on any Debenture  (except
that  Holders  of not  less  than 75% in  principal  amount  of all  outstanding
Debentures  may  consent,  on behalf of the  Holders  of all of the  outstanding
Debentures,  to the  postponement  of any  interest  payment  for a  period  not
exceeding  three  years from its due date);  (iii)  reduce the  principal  of or
extend the fixed maturity of any Debenture;  (iv) waive a default in the payment
of the principal of or interest on, or other redemption payment with respect to,
any Debenture, (v) make any Debenture payable in money other than that stated in
the Debenture;  (vi) make any change in Article Ten that  adversely  affects the
rights of any Debentureholder; or (vii) make any change in Section 6.04, 6.07 or
the third sentence of this Section 9.02.

         After an  amendment,  supplement  or waiver  under  this  Section  9.02
becomes  effective,  the  Company  shall  mail to the  Holders a notice  briefly
describing the amendment.

         It shall not be  necessary  for the consent of the  Holders  under this
section to approve the particular form of any proposed  amendment or supplement,
but it shall be sufficient if such consent approved the substance thereof.

         Upon the request of the Company,  accompanied  by a  resolution  of the
Board of Directors or any duly  authorized  committee  thereof,  authorizing the
execution  of any such  supplemental  indenture,  and upon the  filing  with the
Trustee  of  evidence  satisfactory  to  the  Trustee  of  the  consent  of  the
Debentureholders  as  aforesaid,  the  Trustee  shall  join with the  Company in
execution of such  supplemental  indenture  unless such  supplemental  indenture
affects the Trustee's own rights, duties or immunities under this Indenture.

         SECTION 9.03. Execution of Supplemental  Indentures.  In executing,  or
                       -------------------------------------
accepting the additional trust created by, any supplemental  indenture permitted
by this  Article or the  modifications  thereby  of the  trusts  created by this
Indenture,  the Trustee  shall be entitled to receive,  and  (subject to Section
7.01) shall be fully  protected in relying upon,  an Opinion of Counsel  stating

                                       23

<PAGE>

that the execution of such supplemental  indenture is authorized or permitted by
this  Indenture.  The Trustee may, but shall not be obligated to, enter into any
such  supplemental  indenture  which affects the  Trustee's own rights,  duties,
liabilities or immunities under this Indenture or otherwise.

         SECTION 9.04.  Compliance with Trust Indenture Act.  Every amendment to
                        -----------------------------------
or supplement of this Indenture or the  Debentures  shall comply with the TIA as
then in effect.

         SECTION 9.05.  Revocation  and Effect of Consents.  Until an amendment,
                        ----------------------------------
supplement or waiver becomes effective, a consent to an amendment, supplement or
waiver by a Holder of a  Debenture  is a  continuing  consent  by the Holder and
every  subsequent  Holder of that  Debenture or portion of that  Debenture  that
evidences the same debt as the consenting Holder's  Debenture,  even if notation
of the  consent  is not made on any  Debenture.  Any such  Holder or  subsequent
Holder,  however,  may revoke the  consent as to his  Debenture  or portion of a
Debenture.  Such revocation  shall be effective only if the Trustee receives the
notice of revocation before the date the amendment, supplement or waiver becomes
effective. An amendment,  supplement or waiver shall become effective on receipt
by the Trustee of written consents from the Holders of the requisite  percentage
in principal amount of the outstanding Debentures.

         The Company may,  but shall not be obligated  to, fix a record date for
the  purpose of  determining  the persons  entitled to consent to any  indenture
supplemental hereto. If a record date is fixed, the Holders on such record date,
or their duly designated  proxies,  and only such persons,  shall be entitled to
consent  to such  supplemental  indenture,  whether or not such  Holders  remain
Holders  after such record date;  provided,  that unless such consent shall have
become  effective by virtue of the  requisite  percentage  having been  obtained
prior to the date which is six months after such record  date,  any such consent
previously given shall automatically and without further action by any Holder be
canceled and of no further effect.

         After an amendment,  supplement or waiver becomes  effective,  it shall
bind every Debentureholder  unless it makes a change described in any of clauses
(i) through  (vii) of Section 9.02.  In that case the  amendment,  supplement or
waiver shall bind each Holder of a Debenture  who has  consented to it and every
subsequent  Holder of a Debenture or portion of a Debenture  that  evidences the
same  debt as the  consenting  Holder's  Debenture  (except  that an  amendment,
supplement or wavier  postponing any interest payment for a period not exceeding
three years from its due date shall, as provided in clause (ii) of Section 9.02,
bind all  Debentureholders  upon the  consent of Holders of not less than 75% in
principal amount of all outstanding Debentures).

         SECTION 9.06.  Notation on or Exchange of Debentures.  If an amendment,
                        -------------------------------------
supplement or waiver  changes the terms of a Debenture,  the Trustee may require
the Holder of the Debenture to deliver it to the Trustee.  The Trustee may place
an appropriate  notation on the Debenture  about the changed terms and return it
to the Holder.  Alternatively,  if the Company or the Trustee so determines, the
Company  in  exchange  for the  Debenture  shall  issue  and the  Trustee  shall
authenticate a new Debenture  that reflects the changed  terms.  Failure to make
the appropriate  notation or issue a new Debenture shall not affect the validity
and effect of such amendment, supplement or waiver.

                                       24

<PAGE>

SECTION 9.07.  Trustee  to  Sign  Amendments,  etc. The Trustee may but need not
               -----------------------------------
sign any amendment, supplement or waiver authorized pursuant to this Article

if the  amendment,  supplement  or waiver  adversely  affects  the rights of the
Trustee.  The Trustee  shall be  entitled  to request  and receive an  indemnity
satisfactory to it before signing any amendment, supplement or waiver.

                                   ARTICLE TEN

                                  SUBORDINATION
                                  -------------

         SECTION 10.01.  Agreement to Subordinate.  The Company,  for itself and
                         ------------------------
its successors,  and each Holder,  by his acceptance of Debentures,  agrees that
the payment of the  principal  of,  interest on or any other  amounts due on the
Debentures is subordinated in right of payment,  to the extent and in the manner
stated  in this  Article  Ten,  to the  prior  payment  in  full  of all  Senior
Indebtedness.  Each Holder by his  acceptance of the  Debentures  authorizes and
directs  the Trustee on his behalf to take such  action as may be  necessary  or
appropriate to  effectuate,  as between the holders of Senior  Indebtedness  and
such  Holder,  the  subordination  provided in this Article Ten and appoints the
Trustee his attorney-in-fact for such purpose.

         This Article Ten shall  constitute  a  continuing  offer to all persons
who, in reliance upon such  provisions,  become holders of, or continue to hold,
Senior  Indebtedness,  and such  provisions of this Article Ten are made for the
benefit  of the  holders  of  Senior  Indebtedness,  and such  holders  are made
obligees  under this  Article Ten and they and/or each of them may enforce  such
provisions  of  this  Article  Ten.  The  Trustee  has no  fiduciary  duties  or
obligations to holders of Senior Indebtedness.

         "Senior  Indebtedness" means Indebtedness of the Company outstanding at
any time, whether outstanding on the date hereof or hereafter created, which (i)
is secured,  in whole or in part, by any asset or assets owned by the Company or
a  Subsidiary,  or (ii) arises from  unsecured  borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clause (ii), (iii) or (iv) above.

         SECTION 10.02.  Debentures  Subordinated to Prior Payment of All Senior
                         -------------------------------------------------------
Indebtedness on Dissolution,  Liquidation or Reorganization of the Company. Upon
--------------------------------------------------------------------------
any  distribution  of assets of the  Company  in any  dissolution,  winding  up,
liquidation or reorganization of the Company (whether in bankruptcy,  insolvency
or  receivership  proceedings or upon an assignment for the benefit of creditors
or otherwise);

         (a) the holders of all Senior  Indebtedness  shall first be entitled to
receive payment in full of all principal thereof, interest due thereon and other

                                       25

<PAGE>

amounts due thereon before the Holders of the Debentures are entitled to receive
any payment on account of the principal of or interest on the Debentures;

         (b) any payment or distribution of assets of the Company of any kind or
character,  whether in cash, property or securities, to which the Holders of the
Debentures  or the Trustee on behalf of the Holders of the  Debentures  would be
entitled  except for the  provisions  of this  Article Ten,  including  any such
payment or  distribution  which may be payable or  deliverable  by reason of the
payment of any other  indebtedness  of the  Company  being  subordinated  or the
payment of the Debentures,  shall be paid by the liquidating trustee or agent or
other person making such payment or distribution  directly to the holders of the
Senior Indebtedness or their  representative (pro rata as to each such holder or
representative  on  the  basis  of  the  respective  amounts  of  unpaid  Senior
Indebtedness  held or  represented  by each),  to the extent  necessary  to make
payment in full of all Senior Indebtedness remaining unpaid, after giving effect
to any concurrent  payment or distribution or provision  therefor to the holders
of such Senior  Indebtedness,  except that  Holders of the  Debentures  shall be
entitled to receive  securities that are subordinated to Senior  Indebtedness to
at least the same extent as the Debentures; and

         (c) in the event that  notwithstanding the foregoing provisions of this
Section 10.02,  any payment or distribution of assets of the Company of any kind
or  character,  whether in cash,  property  or  securities,  including  any such
payment or  distribution  which may be payable or  deliverable  by reason of the
payment of any other  indebtedness  of the  Company  being  subordinated  to the
payment of the  Debentures,  shall be  received by the Trustee or the Holders of
the Debentures on account of principal of or interest on the  Debentures  before
all Senior  Indebtedness  is paid in full, or effective  provision  made for its
payment,  such payment or  distribution  (subject to the  provisions of Sections
10.05 and 10.06)  shall be received and held in trust for and shall be paid over
to the holders of the Senior Indebtedness  remaining unpaid or unprovided for or
their  representative  (pro rata as  provided  in  subsection  (b)  above),  for
application  to the  payment of such Senior  Indebtedness  until all such Senior
Indebtedness shall have been paid in full, after giving effect to any concurrent
payment or  distribution  or  provision  therefor  to the holders of such Senior
Indebtedness, except that Holders of the Debentures shall be entitled to receive
securities  that are  subordinated  to Senior  Indebtedness to at least the same
extent as the Debentures.

The Company shall give prompt written notice to the Trustee of any  dissolution,
winding up,  liquidation or  reorganization of the Company and of any fact known
to the  Company  which  would  prohibit  the making of any  payment to or by the
Trustee in respect of the Debentures.

         SECTION 10.03.  Debentureholders  to be Subrogated to Rights of Holders
                         -------------------------------------------------------
of  Senior  Indebtedness.   Subject  to  the  payment  in  full  of  all  Senior
------------------------
Indebtedness  pursuant to this Article Ten, the Holders of the Debentures  shall
be  subrogated  equally  and  ratably to the right of the  holders of the Senior
Indebtedness  to receive  payments  or  distributions  of assets of the  Company
applicable to the Senior  Indebtedness until all amounts owing on the Debentures
shall be paid in full,  and for the purpose of such  subrogation  no payments or
distributions  to the holders of the Senior  Indebtedness by or on behalf of the
Company or by or on behalf of the  Holders of the  Debentures  by virtue of this
Article  Ten  which  otherwise  would  have  been  made  to the  Holders  of the
Debentures shall, as among the Company,  its creditors other than holders of the
Senior  Indebtedness and the Holders of the Debentures,  be deemed to be payment
by the Company to or on account of the Senior Indebtedness,  it being understood

                                       26

<PAGE>

that the  provisions of this Article Ten are intended  solely for the purpose of
defining the relative rights of the Holders of the Debentures,  on the one hand,
and the holders of the Senior Indebtedness, on the other hand.

         SECTION  10.04.  Obligation  of  the  Company  Unconditional.   Nothing
                          -------------------------------------------
contained in this Article Ten or elsewhere in this Indenture or in any Debenture
is intended to or shall impair, as between the Company, its creditors other than
Holders of Senior Indebtedness and the Holders of the Debentures, the obligation
of the Company,  which is absolute and  unconditional,  to pay to the Holders of
the  Debentures  the principal of and interest on the Debentures as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall  affect the  relative  rights of the Holders of the  Debentures  and
creditors of the Company, other than the holders of the Senior Indebtedness, nor
shall  anything  herein or  therein  prevent  the  Trustee  or the Holder of any
Debenture  from  exercising all remedies  otherwise  permitted by applicable law
upon default under this  Indenture,  subject to the rights,  if any,  under this
Article Ten of the holders of Senior  Indebtedness in respect of cash,  property
or securities of the Company received upon the exercise of any such remedy. Upon
any  distribution of assets of the Company  referred to in this Article Ten, the
Trustee, subject to the provisions of Sections 7.01 and 7.02, and the Holders of
the  Debentures  shall be  entitled to rely upon any order or decree made by any
court  of  competent  jurisdiction  in  which  such  dissolution,   winding  up,
liquidation or reorganization  proceedings are pending,  or a certificate of the
liquidating  trustee or agent or other  person  making any  distribution  to the
Trustee or the Holders of the Debentures,  for the purpose of  ascertaining  the
persons entitled to participate in such distribution,  the holders of the Senior
Indebtedness  and other  Indebtedness  of the  Company,  the  amount  thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article Ten.

         Nothing contained in this Article Ten or elsewhere in this Indenture or
in any Debenture is intended to or shall affect the obligation of the Company to
make or prevent the Company from making,  at any time except during the pendency
of  any  dissolution,  winding-up,  liquidation  or  reorganization  proceeding,
payments at any time of the principal of or interest on the Debentures.

         SECTION 10.05. Knowledge of Trustee.  Notwithstanding any provisions of
                        --------------------
this  Indenture,  the Trustee shall not be charged with actual  knowledge of the
existence of any facts which would  prohibit the making of any payment of monies
to or by the  Trustee,  or the taking or not  taking of any other  action by the
Trustee, until two Business Days after the Trustee through a Responsible Officer
shall have received written notice thereon from the Company, any Debentureholder
or any  Paying  Agent or the  holder  or  representative  of any class of Senior
Indebtedness.

         SECTION 10.06.  Application by Trustee of Monies  Deposited With It. If
                         ---------------------------------------------------
at least  two  Business  Days  prior  to the date on which by the  terms of this
Indenture any monies  deposited  with the Trustee or any Paying Agent may become
payable for any purpose (including,  without  limitation,  the payment of either
the  principal of or the interest on any  Debenture)  the Trustee shall not have
received with respect to such monies the notice  provided for in Section  10.05,
then the Trustee  shall have full power and authority to receive such monies and
to apply the same to the purpose for which they were  received  and shall not be
affected by any notice to the  contrary  which may be received by it on or after
such date. This Section shall be construed solely for the benefit of the Trustee

                                       27

<PAGE>

and Paying Agent and shall not otherwise  affect the rights of holders of Senior
Indebtedness.

         SECTION 10.07.  Subordination  Rights Not Impaired by Acts or Omissions
                         -------------------------------------------------------
of the  Company or Holders of Senior  Indebtedness.  No right of any  present or
--------------------------------------------------
future holders of any Senior  Indebtedness to enforce  subordination as provided
herein  shall at any time in any way be  prejudiced  or  impaired  by any act or
failure to act on the part of the  Company  or by any act or failure to act,  in
good faith, by any such holder,  or by any noncompliance by the Company with the
terms of this  Indenture,  regardless  of any  knowledge  thereof which any such
holder may have or be otherwise charged with. The holders of Senior Indebtedness
may extend,  renew,  modify or amend the terms of the Senior Indebtedness or any
security therefor and release, sell or exchange such security and otherwise deal
freely with the Company,  all without  affecting the liabilities and obligations
of the parties to the Indenture or the Holders. No provision in any supplemental
indenture  which  affects  the  superior  position  of the  holders  of any then
existing  Senior  Indebtedness  shall be  effective  against  the holders of the
Senior Indebtedness who have not consented thereto.

         SECTION  10.08.   Debentureholders   Authorize  Trustee  to  Effectuate
                           -----------------------------------------------------
Subordination of Debentures. Each Holder of the Debentures by acceptance thereof
---------------------------
authorizes  and expressly  directs the Trustee on its, his or her behalf to take
such action as may be necessary or  appropriate  in the sole  discretion  of the
Trustee  to  effectuate  the  subordination  provided  in this  Article  Ten and
appoints  the  Trustee  its,  his  or her  attorney-in-fact  for  such  purpose,
including,  in  the  event  of  any  dissolution,  winding  up,  liquidation  or
reorganization of the Company (whether in bankruptcy, insolvency or receivership
proceedings  or upon an assignment  for the benefit of creditors or  otherwise),
the  immediate  filing  of a claim for the  unpaid  balance  of its,  his or her
Debentures in the form required in said  proceedings  and cause said claim to be
approved; provided, however, that the Trustee shall not be liable for any action
or failure to act in  accordance  with this Article Ten. If the Trustee does not
file a proper  claim or proof of debt in the form  required  in such  proceeding
prior to 30 days before the expiration of the time to file such claim or claims,
then the  holders of Senior  Indebtedness  have the right to file and are hereby
authorized to file an appropriate claim for and on behalf of the Holders of said
Debentures.

         SECTION  10.09.  Right of  Trustee  to Hold  Senior  Indebtedness.  The
                          ------------------------------------------------
Trustee  shall be entitled to all of the rights set forth in this Article Ten in
respect of any Senior  Indebtedness at any time held by it to the same extent as
any other holder of Senior Indebtedness,  and nothing in this Indenture shall be
construed to deprive the Trustee of any of its rights as such holder.

         SECTION  10.10.  Article  Ten Not to  Prevent  Events of  Default.  The
                          ------------------------------------------------
failure  to make a payment on account of  principal  shall not be  construed  as
preventing the occurrence of an Event of Default under Section 6.01.

         SECTION  10.11.  No  Fiduciary   Duty  Created  to  Holders  of  Senior
                          ------------------------------------------------------
Indebtedness.  With respect to the holders of Senior  Indebtedness,  the Trustee
------------
undertakes to perform or to observe only such of its  covenants and  obligations
as are specifically  set forth in this Article Ten, and no implied  covenants or
obligations  with  respect to the holders of Senior  Indebtedness  shall be read
into this Indenture against the Trustee.  The Trustee shall not be deemed to owe

                                       28

<PAGE>

any  fiduciary  duty  to  the  holders  of  Senior Indebtedness by virtue of the
provisions of this Article Ten.

         SECTION 10.12.  Trustee's Compensation Not Prejudiced.  Nothing in this
                         -------------------------------------
Article Tenshall apply to amounts due to the Trustee pursuant to Section 7.07.

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS
                                 --------------

         SECTION 11.01.  Trust Indenture Act Controls.  If any provision of this
                         ----------------------------
Indenture  limits,  qualifies  or  conflicts  with  another  provision  which is
required to be included in this  Indenture by the TIA,  the  required  provision
shall control.

         SECTION 11.02.   Notices.   Any  notice  or   communication   shall  be
                          -------
sufficiently given if in writing and delivered or mailed as follows:

         (a) Notices or  communications  to the Company or the Trustee  shall be
given only by hand  delivery or by  certified  or  registered  first class mail,
return receipt requested, or by facsimile transmission promptly followed by hand
delivery or certified or registered first class mail, return receipt  requested,
as follows:

         If to the Company, addressed to:

                  INTERVEST  CORPORATION OF NEW YORK
                  10 Rockefeller Plaza, Suite
                  1015 New York, New York 10020-1903

         If to the Trustee, addressed to:

                  THE BANK OF NEW YORK
                  101 Barclay Street, 21 West
                  New York, New York  10286
                  Attention:  Corporate Trust Department

         Any notice or  communication  to the  Company or the  Trustee  shall be
deemed given on the day  delivered and receipted for if delivered by hand, or on
the day the  return  receipt  card is signed on  behalf  of the  Company  or the
Trustee if sent by certified or registered  mail.  The Company or the Trustee by
notice  to the  other  and  to  Debentureholders  may  designate  additional  or
different addresses for subsequent notices or communications.

         (b) Notices or communications  to a Debentureholder  shall be mailed by
first class mail to such  Debentureholder  at the address  which  appears on the
registration  books of the  Registrar  and shall be  sufficiently  given to such
Debentureholder if so mailed within the time prescribed.

         Failure to mail a notice or communication to a  Debentureholder  or any
defect  in  it  shall  not  affect  its   sufficiency   with  respect  to  other
Debentureholders. If a notice or communication is mailed to a Debentureholder in

                                       29

<PAGE>

the manner provided in this paragraph (b), it is duly given,  whether or not the
addressee  receives  it.  If the  Company  mails a notice  or  communication  to
Debentureholders  it shall mail a copy of such  notice to the  Trustee  and each
Agent at the same time.

         SECTION 11.03. Certificate and Opinion as to Conditions Precedent. Upon
                        --------------------------------------------------
any  request or  application  by the  Company to the  Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee: (i) an Officers'
Certificate in form and substance  satisfactory  to the Trustee stating that all
conditions  precedent,  if any,  provided for in this Indenture  relating to the
proposed actions have been complied with; and (ii) an Opinion of Counsel in form
and substance  satisfactory  to the Trustee stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

         SECTION 11.04.  Statements  Required in  Certificate  or Opinion.  Each
                         ------------------------------------------------
certificate  or opinion with respect to compliance  with a condition or covenant
provided for in this Indenture  shall  include:  (i) a statement that the person
making such  certificate or opinion has read such covenant or condition;  (ii) a
brief statement as to the nature and scope of the  examination or  investigation
upon which the statements or opinions  contained in such  certificate or opinion
are based;  (iii) a statement  that, in the opinion of such person,  he has made
such  examination or  investigation  as is necessary to enable him to express an
informed  opinion as to  whether  or not such  covenant  or  condition  has been
complied with; and (iv) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

         SECTION 11.05.  Rules by Trustee  and  Agents.  The  Trustee  may  make
                         ---------------------------
reasonable  rules  for  action  by, or at a meeting  of,  Debentureholders.  The
Registrar or Paying Agent may make reasonable rules for its functions.

         SECTION  11.06.  Legal  Holidays.  A "Legal  Holiday" is a Saturday,  a
                          ---------------
Sunday or a day on which banking institutions are not required to be open in the
City of New York,  in the State of New York, or in the city in which the Trustee
administers its corporate  trust business.  If a payment date is a Legal Holiday
at a place of payment,  payment may be made at such place on the next succeeding
day  that  is not a  Legal  Holiday,  and  no  interest  shall  accrue  for  the
intervening period.

         SECTION 11.07.  Governing Law.  The  laws  of  the  State  of New York,
                         -------------
without  regard  to the  principles  of  conflicts  of law,  shall  govern  this
Indenture and the Debentures.

         SECTION 11.08.  No Recourse Against Others.  Liabilities  of directors,
                         --------------------------
officers,  employees  and  stockholders,  as such, of the Company are waived and
released as provided in paragraph 14 of the Debentures.

         SECTION 11.09.  Successors.  All  agreements  of  the  Company  in this
                         ----------
Indenture and the Debentures  shall bind its  successors.  All agreements of the
Trustee in this Indenture shall bind its successors.

         SECTION 11.10.  Duplicate Originals.  The  parties  may sign any number
                         -------------------
of copies of this Indenture.  Each signed copy shall be an original,  but all of
them together represent the same agreement.

                                       30

<PAGE>

         SECTION 11.11. Separability. In case any provision in this Indenture or
                        ------------
in the  Debentures  shall be invalid,  illegal or  unenforceable,  the validity,
legality and enforceability of the remaining  provisions shall not in any way be
affected or impaired thereby, and a Holder shall have no claim against any party
hereto.

                                                     SIGNATURES

Dated as of            1, 2001                      INTERVEST CORPORATION
            -----------                             OF NEW YORK

                                                     By:
                                                         -----------------------
                                                     Name:   Lowell S. Dansker
                                                     Title:  President
Attest:
-------------------------------------
Name:   Lawrence G. Bergman
Title:  Secretary
                                                     THE BANK OF NEW YORK
                                                     as Trustee

                                                     By:
                                                         -----------------------
                                                     Name:
                                                          ----------------------
                                                     Title:
                                                            --------------------
Attest:

-------------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                       31

<PAGE>

                                                                       Exhibit A
                                                                       ---------

              (FORM OF ACCRUAL DEBENTURE MATURING October 1, 2004)
Number RA(          /04)-                                                  $
          ----------
                        INTERVEST CORPORATION OF NEW YORK
               Series   /  /01 Subordinated Debenture due October 1, 2004
                      -- --

                  INTERVEST   CORPORATION  OF  NEW  YORK,  a  corporation   duly
organized and existing under the laws of the State of New York (the  "Company"),
promises   to   pay   to  or   registered   assigns   the   principal   sum   of
                                          Dollars on  October 1, 2004,  together
----------------------------------------
with interest  accruing on principal at seven and one-half  percent (7 1/2%) per
annum,  plus interest  accruing each calendar quarter on the balance of interest
accrued as of (and including) the last day of the preceding  calendar quarter at
seven and  one-half  percent (7 1/2%) per annum,  and with all accrued  interest
payable with the principal sum on October 1, 2004. The provisions on the back of
this  certificate  are  incorporated  as  if  set  forth  on  the  face  of  the
certificate.

                                        Record Dates:
                                        The tenth day of the second month of the
                                        calendar quarter

DATED:

Authenticated to be one of the
Debentures described in the
Indenture referred to herein:

THE BANK OF NEW YORK, as                     INTERVEST CORPORATION OF NEW YORK
  Registrar

By:                               (Seal)     By:
    -----------------------------                -------------------------------
         Authorized Signatory                President

                                             By:
                                                 -------------------------------
                                                 Secretary

                                       A-1

<PAGE>

                             (REVERSE OF DEBENTURE)

           Series   /  /01 Subordinated Debenture due October 1, 2004
                  -- --
         1.    Interest.  The Company promises to pay interest on the  principal
               --------
amount of this Debenture and interest on the balance of unpaid accrued  interest
at the rate per annum shown above.  Interest  will accrue on principal  from the
first  closing date on which  Debentures  are approved  for  authentication  and
issuance.

         All interest will accrue  quarterly but not be paid until maturity,  at
which  time all  unpaid  accrued  interest  will be  payable  together  with the
principal amount.  Interest on unpaid accrued interest will accrue each calendar
quarter based on the balance of unpaid  accrued  interest as of (and  including)
the last day of the preceding calendar quarter. Interest will be credited on the
first day of the calendar  quarter  following  the calendar  quarter in which it
accrued.  The first date on which  interest will accrue on the balance of unpaid
accrued  interest  shall be the first day of the first  calendar  quarter  after
interest on the principal balance commences accruing.  Interest will be computed
on the basis of a 360-day year consisting of twelve 30-day months.  For purposes
hereof,  January 1, April 1, July 1 and October 1 shall be the first days of the
calendar quarters.

         2.    Method of  Payment.  Until  maturity,  the  Company  will  accrue
               ------------------
interest on the  Debentures  in each  calendar  quarter and reflect such accrued
interest  in its  records  for the  account of the  persons  who are  registered
holders of  Debentures  at the close of  business on the tenth day of the second
month of the calendar  quarter in which such interest is accruing.  Holders must
surrender Debentures to a Paying Agent to collect accrued interest and principal
payments.  The Company  will pay  principal  and interest in money of the United
States  that at the time of  payment is legal  tender for  payment of public and
private debts. The Company may, however, pay principal and interest by its check
payable in such money. It may mail payments to a holder's registered address.

         3.    Paying Agent and Registrar.  The  Bank  of  New  York, a New York
               --------------------------
banking corporation, will act as Registrar and will authenticate the Debentures.
The Company  may change any Paying  Agent,  Registrar  or  co-Registrar  without
notice.

         4.    Indenture.  This Debenture is one of a duly authorized series  of
               ---------
Debentures  issued by the Company  under an  Indenture  dated as of           1,
                                                                    ---------
2001 (the "Indenture")  between the Company and The Bank of New York, as trustee
(the  "Trustee").  The  term  "Debentures"  being  used  herein  refers  to  all
Maturities of Debentures  issued under the Indenture.  Capitalized  terms herein
are used as defined in the Indenture  unless otherwise  indicated.  Reference is
hereby made to the  Indenture  for a  description  of the  rights,  obligations,
duties and immunities of the Trustee and the  Debentureholders and for the terms
and  conditions  upon  which  the  Debentures  are  and  are to be  issued.  The
Debentures  are general  unsecured  obligations  of the  Company  limited to the
aggregate  principal  amount of $5,000,000 of which a maximum of $1,000,000 will
have a maturity  date of October 1, 2004,  a maximum of  $2,000,000  will have a
maturity  date of  October  1, 2006,  and a maximum  of  $2,000,000  will have a
maturity date of October 1, 2008.

                                       A-2

<PAGE>

         5.    Optional  Redemption.  The Company may at its option  redeem  the
               --------------------
Debentures of any CUSIP Number in whole or in part at any time.  The  redemption
price will be equal to (i) the face amount of the Debentures to be redeemed plus
a 1% premium if the date of  redemption  is prior to July 1, 2002,  and (ii) the
face amount of the  Debentures to be redeemed if the date of redemption is after
July 1, 2002.

         6.    Selection  and  Notice  of  Redemption.  If  less than all of the
               --------------------------------------
Debentures of any CUSIP Number are to be redeemed,  the  Registrar  shall select
the  Debentures to be redeemed by such method as the  Registrar  shall deem fair
and  appropriate,  or if the  Debentures  are  listed on a  national  securities
exchange,  in accordance  with the rules of such exchange.  The Registrar  shall
make the selection from the Debentures outstanding and not previously called for
redemption.  The Registrar may select for redemption  portions (equal to $10,000
or any integral  multiple  thereof) of the principal  amount of Debentures  that
have denominations  larger than $10,000.  Provisions of the Indenture that apply
to Debentures  called for redemption also apply to portions of Debentures called
for  redemption.  Notice of  redemption  will be mailed at least 30 days but not
more than 90 days before the redemption  date to each holder of Debentures to be
redeemed at his registered  address.  On and after the redemption date, interest
ceases to accrue on Debentures or portions thereof called for redemption.

         7.    Denominations, Transfer, Exchange.  The  Debentures  are issuable
               ---------------------------------
in  registered  form without  coupons in  denominations  of $10,000 and integral
multiples of $10,000. A holder may transfer or exchange Debentures in accordance
with the Indenture.  A Debenture containing a particular CUSIP Number may not be
exchanged for a Debenture  containing  another  CUSIP Number.  The Registrar may
require a holder,  among other things, to furnish  appropriate  endorsements and
transfer  documents,  and to pay any taxes and fees required by law or permitted
by the  Indenture.  The Registrar need not transfer or exchange any Debenture or
portion of a Debenture  selected  for  redemption,  or transfer or exchange  any
Debentures  for a period  of 15 days  before a  selection  of  Debentures  to be
redeemed.

         8.    Persons Deemed Owners.  The  registered holder of a Debenture may
               ---------------------
be treated as the owner of it for all purposes.

         9.    Unclaimed  Money.  If  money  for  the  payment  of  principal or
               ----------------
interest  remains  unclaimed for two years, the Trustee or Paying Agent will pay
the money back to the Company, if the Company requests such repayment within one
year  after such two year  period  that such money  remains  unclaimed.  If such
unclaimed money is so paid back to the Company, thereafter,  holders entitled to
the money must look to the Company for payment as general  creditors,  unless an
applicable  abandoned  property law designates another person. If such unclaimed
money is not so paid back to the  Company,  it may be disposed of by the Trustee
in accordance with applicable law.

         10.   Amendment, Supplement, Waiver. Subject to certain exceptions, the
               -----------------------------
Indenture or the Debentures may be amended or supplemented, and any past default
or compliance with any provision may be waived,  with the consent of the holders
of a majority in principal  amount of the  outstanding  Debentures.  Without the

                                       A-3

<PAGE>

consent  of any  Debentureholder,  the  Company  may  amend  or  supplement  the
Indenture  or  the  Debentures  to  cure  any  ambiguity,  omission,  defect  or
inconsistency,  to comply with Article Five of the Indenture  (providing for the
assumption of the  obligations of the Company under the Indenture by a successor
corporation), or to make any change that does not adversely affect the rights of
any Debentureholder.

         11.   Defaults and Remedies.  The  Indenture  provides that the Trustee
               ---------------------
will give the Debentureholders  notice of an uncured Default known to it, within
90 days  after  the  occurrence  of an  Event  of  Default  (as  defined  in the
Indenture),  or as soon as  practicable  after it learns of an Event of  Default
which occurred more than 90 days beforehand;  provided that,  except in the case
of Default in the payment of principal  of or interest on any of the  Debentures
or any amount due on  redemption,  the Trustee may withhold such notice if it in
good faith  determines that the withholding of such notice is in the interest of
the Debentureholders.  In case an Event of Default occurs and is continuing, the
Trustee or the holders of not less than 25% of aggregate principal amount of the
Debentures  then  outstanding,  by notice in writing to the Company  (and to the
Trustee if given by the Debentureholders),  may declare the principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Such
declaration may be rescinded by holders of a majority in principal amount of the
Debentures if all existing Events of Default (except  nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived and if the rescission  would not conflict with any judgment or decree.
The Indenture  requires the Company to file periodic reports with the Trustee as
to the absence of defaults.

         12.  Subordination. The indebtedness evidenced by all of the Debentures
              -------------
is, to the extent provided in the Indenture, subordinate and subject in right of
payment  to the  prior  payment  in full of all  Senior  Indebtedness,  and this
Debenture is issued subject to such provisions of the Indenture, and each holder
of this  Debenture  by  accepting  same,  agrees  to and  shall be bound by such
provisions.  "Senior Indebtedness" means Indebtedness of the Company outstanding
at any time, whether outstanding on the date hereof or hereafter created,  which
(i) is secured, in whole or in part, by any asset or assets owned by the Company
or a Subsidiary,  or (ii) arises from unsecured borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clauses (ii), (iii) or (iv) above.

         13.   Trustee Dealings with the Company. The Trustee, in its individual
               ---------------------------------

or any other  capacity,  may make loans to, accept  deposits  from,  and perform
services  for the Company or its  Affiliates,  and may  otherwise  deal with the
Company or its Affiliates, as if it were not the Trustee.

                                       A-4

<PAGE>

14.   No Recourse Against Others.  A director, officer, employee or stockholder,
      --------------------------
as such, of the Company shall not have any liability for any  obligations of the
Company  under the  Debentures  or the  Indenture  or for any claim based on, in
respect  of  or  by  reason  of,  such  obligations  or  their  creation.   Each
Debentureholder by accepting a Debenture waives and releases all such liability.
The  waiver  and  release  are part of the  consideration  for the  issue of the
Debentures.

         15.   Authentication.  This  Debenture  shall  not  be  valid until the
               --------------
Registrar  signs the  certificate  of  authentication  on the other side of this
Debenture.

         16.   Abbreviations.  Customary  abbreviations  may be used in the name
               -------------
of the  Debentureholder  or an assignee,  such as: TEN COM (=tenants in common),
TEN  ENT  (=tenants  by  entirety),   JT  TEN  (=joint  tenants  with  right  of
survivorship  and not as tenants in  common),  CUST  (=custodian),  and  U/G/M/A
(=Uniform Gifts to Minors Act).

                  The Company will furnish to any  Debentureholder  upon written
request  and without  charge a copy of the  Indenture.  Requests  may be made to
Intervest  Corporation of New York, 10 Rockefeller  Plaza, Suite 1015, New York,
New York 10020-1903.

                                       A-5

<PAGE>

                                   ASSIGNMENT

If you want to  assign  this  Debenture,  fill in the form  below  and have your
signature  guaranteed by a commercial  bank or trust company or a member firm of
any national securities exchange registered under the Securities Exchange Act of
1934.

I or we assign and transfer this Debenture to

----------------------------------------------------------------------
(Please insert assignee's social security or tax identification number)

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

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

---------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
agent to transfer  this  Debenture  on the books of the  Company.  The agent may
substitute another to act for him.

Date:                          Your signature:
      ----------------------                   ---------------------------------

                                               ---------------------------------
                                           (Sign exactly as your name appears on
                                               the other side of this Debenture)

Signature Guarantee:
                     -----------------------------

                                       A-6

<PAGE>

                                                                       Exhibit B
                                                                       ---------

              (FORM OF ACCRUAL DEBENTURE MATURING October 1, 2006)
Number RA(          /06)-                                                  $
          ----------
                        INTERVEST CORPORATION OF NEW YORK
               Series   /  /01 Subordinated Debenture due October 1, 2006
                      -- --

                  INTERVEST   CORPORATION  OF  NEW  YORK,  a  corporation   duly
organized and existing under the laws of the State of New York (the  "Company"),
promises   to   pay   to  or   registered   assigns   the   principal   sum   of
                                          Dollars on  October 1, 2006,  together
----------------------------------------
with  interest  accruing on  principal  at eight  percent  (8%) per annum,  plus
interest accruing each calendar quarter on the balance of interest accrued as of
(and including) the last day of the preceding  calendar quarter at eight percent
(8%) per annum,  and with all accrued interest payable with the principal sum on
October 1, 2006. The provisions on the back of this certificate are incorporated
as if set forth on the face of the certificate.

                                        Record Dates:
                                        The tenth day of the second month of the
                                        calendar quarter

DATED:

Authenticated to be one of the
Debentures described in the
Indenture referred to herein:

THE BANK OF NEW YORK, as                       INTERVEST CORPORATION OF NEW YORK
  Registrar

By:                               (Seal)       By:
    -----------------------------                  --------------------------
         Authorized Signatory                  President

                                               By:
                                                   --------------------------
                                                   Secretary

                                       B-1

<PAGE>

                             (REVERSE OF DEBENTURE)

           Series   /  /01 Subordinated Debenture due October 1, 2006
                  -- --

         1.   Interest.  The  Company  promises to pay interest on the principal
              --------
amount of this Debenture and interest on the balance of unpaid accrued  interest
at the rate per annum shown above.  Interest  will accrue on principal  from the
first  closing date on which  Debentures  are approved  for  authentication  and
issuance.

         All interest will accrue  quarterly but not be paid until maturity,  at
which  time all  unpaid  accrued  interest  will be  payable  together  with the
principal amount.  Interest on unpaid accrued interest will accrue each calendar
quarter based on the balance of unpaid  accrued  interest as of (and  including)
the last day of the preceding calendar quarter. Interest will be credited on the
first day of the calendar  quarter  following  the calendar  quarter in which it
accrued.  The first date on which  interest will accrue on the balance of unpaid
accrued  interest  shall be the first day of the first  calendar  quarter  after
interest on the principal balance commences accruing.  Interest will be computed
on the basis of a 360-day year consisting of twelve 30-day months.  For purposes
hereof,  January 1, April 1, July 1 and October 1 shall be the first days of the
calendar quarters.

         2.   Method  of  Payment.  Until  maturity,  the  Company  will  accrue
              -------------------
interest on the  Debentures  in each  calendar  quarter and reflect such accrued
interest  in its  records  for the  account of the  persons  who are  registered
holders of  Debentures  at the close of  business on the tenth day of the second
month of the calendar  quarter in which such interest is accruing.  Holders must
surrender Debentures to a Paying Agent to collect accrued interest and principal
payments.  The Company  will pay  principal  and interest in money of the United
States  that at the time of  payment is legal  tender for  payment of public and
private debts. The Company may, however, pay principal and interest by its check
payable in such money. It may mail payments to a holder's registered address.

         3.   Paying  Agent  and  Registrar.  The  Bank  of New York, a New York
              -----------------------------
banking corporation, will act as Registrar and will authenticate the Debentures.
The Company  may change any Paying  Agent,  Registrar  or  co-Registrar  without
notice.

         4.   Indenture.  This  Debenture is one of a duly authorized series  of
              ---------
Debentures  issued by the Company  under an  Indenture  dated as of           1,
                                                                    ---------
2001 (the "Indenture")  between the Company and The Bank of New York, as trustee
(the  "Trustee").  The  term  "Debentures"  being  used  herein  refers  to  all
Maturities of Debentures  issued under the Indenture.  Capitalized  terms herein
are used as defined in the Indenture  unless otherwise  indicated.  Reference is
hereby made to the  Indenture  for a  description  of the  rights,  obligations,
duties and immunities of the Trustee and the  Debentureholders and for the terms
and  conditions  upon  which  the  Debentures  are  and  are to be  issued.  The
Debentures  are general  unsecured  obligations  of the  Company  limited to the
aggregate  principal  amount of $5,000,000 of which a maximum of $1,000,000 will
have a maturity  date of October 1, 2004,  a maximum of  $2,000,000  will have a
maturity  date of  October  1, 2006,  and a maximum  of  $2,000,000  will have a
maturity date of October 1, 2008.

                                       B-2

<PAGE>

         5.   Optional  Redemption.  The  Company  may  at its option redeem the
              --------------------
Debentures of any CUSIP Number in whole or in part at any time.  The  redemption
price will be equal to (i) the face amount of the Debentures to be redeemed plus
a 1% premium if the date of  redemption  is prior to July 1, 2002,  and (ii) the
face amount of the  Debentures to be redeemed if the date of redemption is on or
after July 1, 2002.

         6.   Selection  and  Notice  of  Redemption.  If  less  than all of the
              --------------------------------------
Debentures of any CUSIP Number are to be redeemed,  the  Registrar  shall select
the  Debentures to be redeemed by such method as the  Registrar  shall deem fair
and  appropriate,  or if the  Debentures  are  listed on a  national  securities
exchange,  in accordance  with the rules of such exchange.  The Registrar  shall
make the selection from the Debentures outstanding and not previously called for
redemption.  The Registrar may select for redemption  portions (equal to $10,000
or any integral  multiple  thereof) of the principal  amount of Debentures  that
have denominations  larger than $10,000.  Provisions of the Indenture that apply
to Debentures  called for redemption also apply to portions of Debentures called
for  redemption.  Notice of  redemption  will be mailed at least 30 days but not
more than 90 days before the redemption  date to each holder of Debentures to be
redeemed at his registered  address.  On and after the redemption date, interest
ceases to accrue on Debentures or portions thereof called for redemption.

         7.    Denominations,  Transfer,  Exchange.  The Debentures are issuable
               -----------------------------------
in  registered  form without  coupons in  denominations  of $10,000 and integral
multiples of $10,000. A holder may transfer or exchange Debentures in accordance
with the Indenture.  A Debenture containing a particular CUSIP Number may not be
exchanged for a Debenture  containing  another  CUSIP Number.  The Registrar may
require a holder,  among other things, to furnish  appropriate  endorsements and
transfer  documents,  and to pay any taxes and fees required by law or permitted
by the  Indenture.  The Registrar need not transfer or exchange any Debenture or
portion of a Debenture  selected  for  redemption,  or transfer or exchange  any
Debentures  for a period  of 15 days  before a  selection  of  Debentures  to be
redeemed.

         8.   Persons Deemed Owners. The registered holder of a Debenture may be
              ---------------------
treated as the owner of it for all purposes.

         9.   Unclaimed Money. If money for the payment of principal or interest
              ---------------
remains  unclaimed for two years, the Trustee or Paying Agent will pay the money
back to the Company,  if the Company  requests  such  repayment  within one year
after such two year period that such money remains unclaimed.  If such unclaimed
money is so paid back to the Company, thereafter,  holders entitled to the money
must look to the Company for payment as general creditors,  unless an applicable
abandoned property law designates another person. If such unclaimed money is not
so paid back to the Company,  it may be disposed of by the Trustee in accordance
with applicable law.

         10.  Amendment, Supplement, Waiver.  Subject to certain exceptions, the
              -----------------------------
Indenture or the Debentures may be amended or supplemented, and any past default
or compliance with any provision may be waived,  with the consent of the holders
of a majority in principal  amount of the  outstanding  Debentures.  Without the
consent  of any  Debentureholder,  the  Company  may  amend  or  supplement  the
Indenture  or  the  Debentures  to  cure  any  ambiguity,  omission,  defect  or

                                       B-3

<PAGE>

inconsistency,  to comply with Article Five of the Indenture  (providing for the
assumption of the  obligations of the Company under the Indenture by a successor
corporation), or to make any change that does not adversely affect the rights of
any Debentureholder.

         11.  Defaults and Remedies.  The  Indenture  provides  that the Trustee
              ---------------------
will give the Debentureholders  notice of an uncured Default known to it, within
90 days  after  the  occurrence  of an  Event  of  Default  (as  defined  in the
Indenture),  or as soon as  practicable  after it learns of an Event of  Default
which occurred more than 90 days beforehand;  provided that,  except in the case
of Default in the payment of principal  of or interest on any of the  Debentures
or any amount due on  redemption,  the Trustee may withhold such notice if it in
good faith  determines that the withholding of such notice is in the interest of
the Debentureholders.  In case an Event of Default occurs and is continuing, the
Trustee or the holders of not less than 25% of aggregate principal amount of the
Debentures  then  outstanding,  by notice in writing to the Company  (and to the
Trustee if given by the Debentureholders),  may declare the principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Such
declaration may be rescinded by holders of a majority in principal amount of the
Debentures if all existing Events of Default (except  nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived and if the rescission  would not conflict with any judgment or decree.
The Indenture  requires the Company to file periodic reports with the Trustee as
to the absence of defaults.

         12.  Subordination. The indebtedness evidenced by all of the Debentures
              -------------
is, to the extent provided in the Indenture, subordinate and subject in right of
payment  to the  prior  payment  in full of all  Senior  Indebtedness,  and this
Debenture is issued subject to such provisions of the Indenture, and each holder
of this  Debenture  by  accepting  same,  agrees  to and  shall be bound by such
provisions.  "Senior Indebtedness" means Indebtedness of the Company outstanding
at any time, whether outstanding on the date hereof or hereafter created,  which
(i) is secured, in whole or in part, by any asset or assets owned by the Company
or a Subsidiary,  or (ii) arises from unsecured borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clauses (ii), (iii) or (iv) above.

         13.  Trustee Dealings with the Company.  The Trustee, in its individual
              ---------------------------------
or any other  capacity,  may make loans to, accept  deposits  from,  and perform
services  for the Company or its  Affiliates,  and may  otherwise  deal with the
Company or its Affiliates, as if it were not the Trustee.

                                       B-4

<PAGE>

         14.  No Recourse Against  Others.  A  director,  officer,  employee  or
              ---------------------------
stockholder,  as such,  of the  Company  shall  not have any  liability  for any
obligations  of the Company  under the  Debentures  or the  Indenture or for any
claim  based on,  in  respect  of or by reason  of,  such  obligations  or their
creation.  Each Debentureholder by accepting a Debenture waives and releases all
such  liability.  The waiver and release are part of the  consideration  for the
issue of the Debentures.

         15.  Authentication.  This  Debenture  shall  not  be  valid  until the
              --------------
Registrar  signs the  certificate  of  authentication  on the other side of this
Debenture.

         16.  Abbreviations.  Customary abbreviations may be used in the name of
              -------------
the Debentureholder or an assignee,  such as: TEN COM (=tenants in common),  TEN
ENT (=tenants by entirety),  JT TEN (=joint  tenants with right of  survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to
Minors Act).

                  The Company will furnish to any  Debentureholder  upon written
request  and without  charge a copy of the  Indenture.  Requests  may be made to
Intervest  Corporation of New York, 10 Rockefeller  Plaza, Suite 1015, New York,
New York 10020-1903.

                                       B-5

<PAGE>

                                   ASSIGNMENT

If you want to  assign  this  Debenture,  fill in the form  below  and have your
signature  guaranteed by a commercial  bank or trust company or a member firm of
any national securities exchange registered under the Securities Exchange Act of
1934.

I or we assign and transfer this Debenture to

----------------------------------------------------------------------
(Please insert assignee's social security or tax identification number)

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

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

----------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
agent to transfer  this  Debenture  on the books of the  Company.  The agent may
substitute another to act for him.

Date:                         Your signature:
      ---------------------                   ----------------------------------

                                              ----------------------------------
                                           (Sign exactly as your name appears on
                                               the other side of this Debenture)

Signature Guarantee:
                    ------------------------

                                       B-6

<PAGE>

                                                                       Exhibit C
                                                                       ---------
              (FORM OF ACCRUAL DEBENTURE MATURING October 1, 2008)
Number RA(          /08)-                                                  $
          ----------
                        INTERVEST CORPORATION OF NEW YORK
           Series   /  /01 Subordinated Debenture due October 1, 2008
                  -- --

                  INTERVEST   CORPORATION  OF  NEW  YORK,  a  corporation   duly
organized and existing under the laws of the State of New York (the  "Company"),
promises   to   pay   to  or   registered   assigns   the   principal   sum   of
                                          Dollars on  October 1, 2008,  together
----------------------------------------
with interest  accruing on principal at eight and one-half  percent (8 1/2%) per
annum,  plus interest  accruing each calendar quarter on the balance of interest
accrued as of (and including) the last day of the preceding  calendar quarter at
eight and  one-half  percent (8 1/2%) per annum,  and with all accrued  interest
payable with the principal sum on October 1, 2008. The provisions on the back of
this  certificate  are  incorporated  as  if  set  forth  on  the  face  of  the
certificate.

                                        Record Dates:
                                        The tenth day of the second month of the
                                        calendar quarter

DATED:

Authenticated to be one of the
Debentures described in the
Indenture referred to herein:

THE BANK OF NEW YORK, as                      INTERVEST CORPORATION OF NEW YORK
  Registrar

By:                              (Seal)      By:
    -----------------------------                -------------------------------
         Authorized Signatory                President

                                             By:
                                                 -------------------------------
                                                 Secretary

                                       C-1

<PAGE>

                             (REVERSE OF DEBENTURE)

           Series   /  /01 Subordinated Debenture due October 1, 2008
                  -- --

         1.   Interest.  The  Company  promises to pay interest on the principal
              --------

amount of this Debenture and interest on the balance of unpaid accrued  interest
at the rate per annum shown above.  Interest  will accrue on principal  from the
first  closing date on which  Debentures  are approved  for  authentication  and
issuance.

         All interest will accrue  quarterly but not be paid until maturity,  at
which  time all  unpaid  accrued  interest  will be  payable  together  with the
principal amount.  Interest on unpaid accrued interest will accrue each calendar
quarter based on the balance of unpaid  accrued  interest as of (and  including)
the last day of the preceding calendar quarter. Interest will be credited on the
first day of the calendar  quarter  following  the calendar  quarter in which it
accrued.  The first date on which  interest will accrue on the balance of unpaid
accrued  interest  shall be the first day of the first  calendar  quarter  after
interest on the principal balance commences accruing.  Interest will be computed
on the basis of a 360-day year consisting of twelve 30-day months.  For purposes
hereof,  January 1, April 1, July 1 and October 1 shall be the first days of the
calendar quarters.

         2.   Method  of  Payment.  Until  maturity,  the  Company  will  accrue
              -------------------
on the Debentures in each calendar  quarter and reflect such accrued interest in
its  records  for the  account  of the  persons  who are  registered  holders of
Debentures  at the close of business on the tenth day of the second month of the
calendar  quarter in which such  interest is accruing.  Holders  must  surrender
Debentures to a Paying Agent to collect accrued interest and principal payments.
The Company will pay  principal  and interest in money of the United States that
at the time of payment is legal tender for payment of public and private  debts.
The Company may,  however,  pay  principal  and interest by its check payable in
such money. It may mail payments to a holder's registered address.

         3.   Paying Agent and Registrar.  The  Bank  of  New  York,  a New York
              --------------------------
banking corporation, will act as Registrar and will authenticate the Debentures.
The Company  may change any Paying  Agent,  Registrar  or  co-Registrar  without
notice.

         4.   Indenture.  This  Debenture  is one  of a duly  authorized  series
              ---------
of Debentures  issued by the Company under an Indenture  dated as of          1,
                                                                     ---------
2001 (the "Indenture")  between the Company and The Bank of New York, as trustee
(the  "Trustee").  The  term  "Debentures"  being  used  herein  refers  to  all
Maturities of Debentures  issued under the Indenture.  Capitalized  terms herein
are used as defined in the Indenture  unless otherwise  indicated.  Reference is
hereby made to the  Indenture  for a  description  of the  rights,  obligations,
duties and immunities of the Trustee and the  Debentureholders and for the terms
and  conditions  upon  which  the  Debentures  are  and  are to be  issued.  The
Debentures  are general  unsecured  obligations  of the  Company  limited to the
aggregate  principal  amount of $5,000,000 of which a maximum of $1,000,000 will
have a maturity  date of October 1, 2004,  a maximum of  $2,000,000  will have a
maturity  date of  October  1, 2006,  and a maximum  of  $2,000,000  will have a
maturity date of October 1, 2008.

                                       C-2

<PAGE>

         5.   Optional  Redemption.  The  Company  may  at its option redeem the
              --------------------
Debentures of any CUSIP Number in whole or in part at any time.  The  redemption
price will be equal to: (i) the face  amount of the  Debentures  to be  redeemed
plus a 1% premium if the date of redemption  is prior to July 1, 2002,  and (ii)
the face amount of the Debentures to be redeemed if the date of redemption is on
or after January 1, 2002.

         6.   Selection  and  Notice  of  Redemption.  If  less  than all of the
              --------------------------------------
Debentures of any CUSIP Number are to be redeemed,  the  Registrar  shall select
the  Debentures to be redeemed by such method as the  Registrar  shall deem fair
and  appropriate,  or if the  Debentures  are  listed on a  national  securities
exchange,  in accordance  with the rules of such exchange.  The Registrar  shall
make the selection from the Debentures outstanding and not previously called for
redemption.  The Registrar may select for redemption  portions (equal to $10,000
or any integral  multiple  thereof) of the principal  amount of Debentures  that
have denominations  larger than $10,000.  Provisions of the Indenture that apply
to Debentures  called for redemption also apply to portions of Debentures called
for  redemption.  Notice of  redemption  will be mailed at least 30 days but not
more than 90 days before the redemption  date to each holder of Debentures to be
redeemed at his registered  address.  On and after the redemption date, interest
ceases to accrue on Debentures or portions thereof called for redemption.

         7.   Denominations, Transfer, Exchange. The Debentures are issuable  in
              ---------------------------------
registered  form  without  coupons  in  denominations  of $10,000  and  integral
multiples of $10,000. A holder may transfer or exchange Debentures in accordance
with the Indenture.  A Debenture containing a particular CUSIP Number may not be
exchanged for a Debenture  containing  another  CUSIP Number.  The Registrar may
require a holder,  among other things, to furnish  appropriate  endorsements and
transfer  documents,  and to pay any taxes and fees required by law or permitted
by the  Indenture.  The Registrar need not transfer or exchange any Debenture or
portion of a Debenture  selected  for  redemption,  or transfer or exchange  any
Debentures  for a period  of 15 days  before a  selection  of  Debentures  to be
redeemed.

         8.   Persons Deemed Owners. The registered holder of a Debenture may be
              ---------------------
treated as the owner of it for all purposes.

         9.   Unclaimed  Money.  If  money  for  the  payment  of  principal  or
              ---------------
interest  remains  unclaimed for two years, the Trustee or Paying Agent will pay
the money back to the Company, if the Company requests such repayment within one
year  after such two year  period  that such money  remains  unclaimed.  If such
unclaimed money is so paid back to the Company, thereafter,  holders entitled to
the money must look to the Company for payment as general  creditors,  unless an
applicable  abandoned  property law designates another person. If such unclaimed
money is not so paid back to the  Company,  it may be disposed of by the Trustee
in accordance with applicable law.

         10.  Amendment, Supplement, Waiver. Subject to certain  exceptions, the
              -----------------------------
Indenture or the Debentures may be amended or supplemented, and any past default
or compliance with any provision may be waived,  with the consent of the holders
of a majority in principal  amount of the  outstanding  Debentures.  Without the
consent  of any  Debentureholder,  the  Company  may  amend  or  supplement  the
Indenture  or  the  Debentures  to  cure  any  ambiguity,  omission,  defect  or
inconsistency,  to  comply with Article Five of the Indenture (providing for the

                                       C-3

<PAGE>

assumption of the  obligations of the Company under the Indenture by a successor
corporation), or to make any change that does not adversely affect the rights of
any Debentureholder.

         11.  Defaults and Remedies.  The  Indenture  provides  that the Trustee
              ---------------------
will give the Debentureholders  notice of an uncured Default known to it, within
90 days  after  the  occurrence  of an  Event  of  Default  (as  defined  in the
Indenture),  or as soon as  practicable  after it learns of an Event of  Default
which occurred more than 90 days beforehand;  provided that,  except in the case
of Default in the payment of principal  of or interest on any of the  Debentures
or any amount due on  redemption,  the Trustee may withhold such notice if it in
good faith  determines that the withholding of such notice is in the interest of
the Debentureholders.  In case an Event of Default occurs and is continuing, the
Trustee or the holders of not less than 25% of aggregate principal amount of the
Debentures  then  outstanding,  by notice in writing to the Company  (and to the
Trustee if given by the Debentureholders),  may declare the principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Such
declaration may be rescinded by holders of a majority in principal amount of the
Debentures if all existing Events of Default (except  nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived and if the rescission  would not conflict with any judgment or decree.
The Indenture  requires the Company to file periodic reports with the Trustee as
to the absence of defaults.

         12.  Subordination. The indebtedness evidenced by all of the Debentures
              -------------
is, to the extent provided in the Indenture, subordinate and subject in right of
payment  to the  prior  payment  in full of all  Senior  Indebtedness,  and this
Debenture is issued subject to such provisions of the Indenture, and each holder
of this  Debenture  by  accepting  same,  agrees  to and  shall be bound by such
provisions.  "Senior Indebtedness" means Indebtedness of the Company outstanding
at any time, whether outstanding on the date hereof or hereafter created,  which
(i) is secured, in whole or in part, by any asset or assets owned by the Company
or a Subsidiary,  or (ii) arises from unsecured borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clauses (ii), (iii) or (iv) above.

         13.  Trustee Dealings with the Company.  The Trustee, in its individual
              ---------------------------------
or any other  capacity,  may make loans to, accept  deposits  from,  and perform
services  for the Company or its  Affiliates,  and may  otherwise  deal with the
Company or its Affiliates, as if it were not the Trustee.

                                       C-4

<PAGE>

         14. No  Recourse  Against  Others. A  director,  officer,  employee  or
             -----------------------------
stockholder,  as such,  of the  Company  shall  not have any  liability  for any
obligations  of the Company  under the  Debentures  or the  Indenture or for any
claim  based on,  in  respect  of or by reason  of,  such  obligations  or their
creation.  Each Debentureholder by accepting a Debenture waives and releases all
such  liability.  The waiver and release are part of the  consideration  for the
issue of the Debentures.

         15.  Authentication.  This  Debenture  shall  not  be  valid  until the
              --------------
Registrar  signs the  certificate  of  authentication  on the other side of this
Debenture.

         16.  Abbreviations.  Customary abbreviations may be used in the name of
              -------------
the Debentureholder or an assignee,  such as: TEN COM (=tenants in common),  TEN
ENT (=tenants by entirety),  JT TEN (=joint  tenants with right of  survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to
Minors Act).

                  The Company will furnish to any  Debentureholder  upon written
request  and without  charge a copy of the  Indenture.  Requests  may be made to
Intervest  Corporation of New York, 10 Rockefeller  Plaza, Suite 1015, New York,
New York 10020-1903.

                                       C-5

<PAGE>

                                   ASSIGNMENT

If you want to  assign  this  Debenture,  fill in the form  below  and have your
signature  guaranteed by a commercial  bank or trust company or a member firm of
any national securities exchange registered under the Securities Exchange Act of
1934.

I or we assign and transfer this Debenture to

----------------------------------------------------------------------
(Please insert assignee's social security or tax identification number)

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

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

----------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
agent to transfer  this  Debenture  on the books of the  Company.  The agent may
substitute another to act for him.

Date:                       Your signature:
      -------------------                   ------------------------------------

                                            ------------------------------------
                                           (Sign exactly as your name appears on
                                               the other side of this Debenture)

Signature Guarantee:
                     --------------------------------

                                       C-6

<PAGE>

                                                                       Exhibit D
                                                                       ---------

         (FORM OF QUARTERLY PAYMENT DEBENTURE MATURING October 1, 2004)
Number R(             /04)-                                                $
         -------------
                        INTERVEST CORPORATION OF NEW YORK
               Series   /  /01 Subordinated Debenture due October 1, 2004
                      -- --

                  INTERVEST   CORPORATION  OF  NEW  YORK,  a  corporation   duly
organized and existing under the laws of the State of New York (the  "Company"),
promises   to   pay   to  or   registered   assigns   the   principal   sum   of
                                          Dollars on  October 1, 2004,  together
----------------------------------------
with interest at seven and one-half  percent (7 1/2%) per annum.  The provisions
on the back of this  certificate are incorporated as if set forth on the face of
the certificate.

                                        Interest Payment Dates:
                                        The first day of each calendar quarter

                                        Record Dates:
                                        The tenth day of the second month of the
                                        calendar quarter

DATED:

Authenticated to be one of the
Debentures described in the
Indenture referred to herein:

THE BANK OF NEW YORK, as                       INTERVEST CORPORATION OF NEW YORK
  Registrar

By:                             (Seal)         By:
     ---------------------------                  ------------------------------
         Authorized Signatory                  President

                                               By:
                                                   -----------------------------
                                                   Secretary

                                       D-1

<PAGE>

                             (REVERSE OF DEBENTURE)

           Series   /  /01 Subordinated Debenture due October 1, 2004
                  -- --

         1.   Interest.  The  Company  promises to pay interest on the principal
              --------
amount of this Debenture at the rate per annum shown above. The Company will pay
interest  quarterly  on January  1, April 1, July 1 and  October 1 of each year.
With respect to Debentures sold on the date $4,000,000 or more of Debentures are
first approved for issuance (the "First Closing Date"),  interest will accrue on
principal from the First Closing Date. With respect to Debentures sold after the
First  Closing Date,  interest will accrue on principal  commencing on the first
day of the month of sale,  if the  Debenture is sold on or before the  fifteenth
day of the month,  or  commencing  on the sixteenth day of the month of sale, if
the  Debenture  is sold  after the  fifteenth  day of the month,  provided  that
interest shall not accrue from prior to the First Closing Date.  Debentures sold
after the First Closing Date shall be deemed sold on the date the Company (or an
underwriter  on its behalf)  receives  payment  therefor.  The first  payment of
interest shall be due on the first day of the second calendar quarter  following
the date of sale of the Debenture,  or such earlier date selected by the Company
without  requirement  of notice After the first  payment  date,  interest on the
Debenture will accrue from the most recent date to which interest has been paid.
Interest  will be computed on the basis of a 360 day year  consisting  of twelve
30-day months.

         2.   Method of Payment. The Company will pay interest on the Debentures
              -----------------
to the persons who are registered holders of Debentures at the close of business
on the tenth day of the  second  month of the  calendar  quarter.  Holders  must
surrender  Debentures  to a Paying  Agent to  collect  principal  payments.  The
Company will pay  principal  and interest in money of the United  States that at
the time of payment is legal tender for payment of public and private debts. The
Company may,  however,  pay  principal and interest by its check payable in such
money. It may mail payments to a holder's registered address.

         3.   Paying Agent and Registrar.  The  Bank  of  New  York,  a New York
              --------------------------
banking corporation, will act as Registrar and will authenticate the Debentures.
The Company  may change any Paying  Agent,  Registrar  or  co-Registrar  without
notice.

         4.   Indenture.  This Debenture is one of a duly  authorized  series of
              ---------
Debentures  issued by the Company under an Indenture dated as of         1, 2001
                                                                 -------
(the "Indenture")  between the Company and The Bank of New York, as trustee (the
"Trustee").  The term "Debentures" being used herein refers to all Maturities of
Debentures  issued  under the  Indenture.  Capitalized  terms herein are used as
defined in the Indenture unless otherwise indicated. Reference is hereby made to
the  Indenture  for  a  description  of  the  rights,  obligations,  duties  and
immunities  of the  Trustee  and the  Debentureholders  and for  the  terms  and
conditions  upon which the Debentures  are and are to be issued.  The Debentures
are  general  unsecured  obligations  of the  Company  limited to the  aggregate
principal  amount of  $5,000,000,  of which a maximum of $1,000,000  will have a
maturity date of October 1, 2004, a maximum of  $2,000,000  will have a maturity
date of October 1, 2006,  and a maximum of $2,000,000  will have a maturity date
of October 1, 2008.

                                       D-2

<PAGE>

         5.   Optional Redemption.  The  Company  may  at its option  redeem the
              -------------------
Debentures of any CUSIP Number in whole or in part at any time.  The  redemption
price of Debentures will be equal to (i) the face amount of the Debentures to be
redeemed plus a 1% premium if the redemption  date is prior to July 1, 2002, and
(ii) the face amount of the Debentures to be redeemed if the redemption  date is
on or after July 1, 2002. In all cases,  the Debenture  holder will also receive
interest accrued to the redemption date.

         6.   Selection  and  Notice  of  Redemption.  If less  than all of  the
              --------------------------------------
Debentures of any CUSIP Number are to be redeemed,  the  Registrar  shall select
the  Debentures to be redeemed by such method as the  Registrar  shall deem fair
and  appropriate,  or if the  Debentures  are  listed on a  national  securities
exchange,  in accordance  with the rules of such exchange.  The Registrar  shall
make the selection from the Debentures outstanding and not previously called for
redemption.  The Registrar may select for redemption  portions (equal to $10,000
or any integral  multiple  thereof) of the principal  amount of Debentures  that
have denominations  larger than $10,000.  Provisions of the Indenture that apply
to Debentures  called for redemption also apply to portions of Debentures called
for  redemption.  Notice of  redemption  will be mailed at least 30 days but not
more than 90 days before the redemption  date to each holder of Debentures to be
redeemed at his registered  address.  On and after the redemption date, which is
the date  specified by the Company in its notice,  interest  ceases to accrue on
Debentures or portions thereof called for redemption.

         7.   Denominations,  Transfer, Exchange. The Debentures are issuable in
              ----------------------------------
registered  form  without  coupons  in  denominations  of $10,000  and  integral
multiples of $10,000. A holder may transfer or exchange Debentures in accordance
with the Indenture.  A Debenture containing a particular CUSIP Number may not be
exchanged for a Debenture  containing  another  CUSIP Number.  The Registrar may
require a holder,  among other things, to furnish  appropriate  endorsements and
transfer  documents,  and to pay any taxes and fees required by law or permitted
by the  Indenture.  The Registrar need not transfer or exchange any Debenture or
portion of a Debenture  selected  for  redemption,  or transfer or exchange  any
Debentures  for a period  of 15 days  before a  selection  of  Debentures  to be
redeemed.

         8.   Persons Deemed Owners. The registered holder of a Debenture may be
              ---------------------
treated as the owner of it for all purposes.

         9.   Unclaimed Money. If money for the payment of principal or interest
              ---------------
remains  unclaimed for two years, the Trustee or Paying Agent will pay the money
back to the Company,  if the Company  requests  such  repayment  within one year
after such two year period that such money remains unclaimed.  If such unclaimed
money is so paid back to the Company, thereafter,  holders entitled to the money
must look to the Company for payment as general creditors,  unless an applicable
abandoned property law designates another person. If such unclaimed money is not
so paid back to the Company,  it may be disposed of by the Trustee in accordance
with applicable law.

                                       D-3

<PAGE>

         10. Amendment, Supplement, Waiver. Subject  to  certain exceptions, the
             -----------------------------
Indenture or the Debentures may be amended or supplemented, and any past default
or compliance with any provision may be waived,  with the consent of the holders
of a majority in principal  amount of the  outstanding  Debentures.  Without the
consent  of any  Debentureholder,  the  Company  may  amend  or  supplement  the
Indenture  or  the  Debentures  to  cure  any  ambiguity,  omission,  defect  or
inconsistency,  to comply with Article Five of the Indenture  (providing for the
assumption of the  obligations of the Company under the Indenture by a successor
corporation), or to make any change that does not adversely affect the rights of
any Debentureholder.

         11.  Defaults and Remedies.  The  Indenture  provides  that the Trustee
              ---------------------
will give the Debentureholders  notice of an uncured Default known to it, within
90 days  after  the  occurrence  of an  Event  of  Default  (as  defined  in the
Indenture),  or as soon as  practicable  after it learns of an Event of  Default
which occurred more than 90 days beforehand;  provided that,  except in the case
of Default in the payment of principal  of or interest on any of the  Debentures
or any amount due on  redemption,  the Trustee may withhold such notice if it in
good faith  determines that the withholding of such notice is in the interest of
the Debentureholders.  In case an Event of Default occurs and is continuing, the
Trustee or the holders of not less than 25% of aggregate principal amount of the
Debentures  then  outstanding,  by notice in writing to the Company  (and to the
Trustee if given by the Debentureholders),  may declare the principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Such
declaration may be rescinded by holders of a majority in principal amount of the
Debentures if all existing Events of Default (except  nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived and if the rescission  would not conflict with any judgment or decree.
The Indenture  requires the Company to file periodic reports with the Trustee as
to the absence of defaults.

         12.  Subordination. The indebtedness evidenced by all of the Debentures
              -------------
is, to the extent provided in the Indenture, subordinate and subject in right of
payment  to the  prior  payment  in full of all  Senior  Indebtedness,  and this
Debenture is issued subject to such provisions of the Indenture, and each holder
of this  Debenture  by  accepting  same,  agrees  to and  shall be bound by such
provisions.  "Senior Indebtedness" means Indebtedness of the Company outstanding
at any time, whether outstanding on the date hereof or hereafter created,  which
(i) is secured, in whole or in part, by any asset or assets owned by the Company
or a Subsidiary,  or (ii) arises from unsecured borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clauses (ii), (iii) or (iv) above.

                                       D-4

<PAGE>

         13.  Trustee Dealings with the Company. The  Trustee, in its individual
              ---------------------------------
or any other  capacity,  may make loans to, accept  deposits  from,  and perform
services  for the Company or its  Affiliates,  and may  otherwise  deal with the
Company or its Affiliates, as if it were not the Trustee.

         14.  No Recourse  Against  Others.  A  director,  officer,  employee or
              ----------------------------
stockholder,  as such,  of the  Company  shall  not have any  liability  for any
obligations  of the Company  under the  Debentures  or the  Indenture or for any
claim  based on,  in  respect  of or by reason  of,  such  obligations  or their
creation.  Each Debentureholder by accepting a Debenture waives and releases all
such  liability.  The waiver and release are part of the  consideration  for the
issue of the Debentures.

         15.  Authentication.  This  Debenture   shall not  be  valid  until the
              --------------
Registrar  signs the  certificate  of  authentication  on the other side of this
Debenture.

         16.  Abbreviations.  Customary abbreviations may be used in the name of
              -------------
the Debentureholder or an assignee,  such as: TEN COM (=tenants in common),  TEN
ENT (=tenants by entirety),  JT TEN (=joint  tenants with right of  survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to
Minors Act).

           The Company will furnish to any Debentureholder  upon written request
and without  charge a copy of the  Indenture.  Requests may be made to Intervest
Corporation  of New York, 10 Rockefeller  Plaza,  Suite 1015, New York, New York
10020-1903.

                                       D-5

<PAGE>

                                   ASSIGNMENT

If you want to  assign  this  Debenture,  fill in the form  below  and have your
signature  guaranteed by a commercial  bank or trust company or a member firm of
any national securities exchange registered under the Securities Exchange Act of
1934.

I or we assign and transfer this Debenture to

----------------------------------------------------------------------
(Please insert assignee's social security or tax identification number)

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

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

---------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
agent  to  transfer  this  Debenture on the books of the Company.  The agent may
substitute another to act for him.

Date:                                  Your signature:
      ------------------------                         -------------------------

                                       -----------------------------------------
                                       (Sign exactly as your name appears on the
                                        other side of this Debenture)

Signature Guarantee:
                     -------------------------------

                                       D-6

<PAGE>

                                                                       Exhibit E
                                                                       ---------

         (FORM OF QUARTERLY PAYMENT DEBENTURE MATURING October 1, 2006)
Number R(            /06)-                                                 $
          ----------
                        INTERVEST BANCSHARES CORPORATION
           Series   /  /01 Subordinated Debenture due October 1, 2006
                  -- --

           INTERVEST  CORPORATION OF NEW YORK, a corporation  duly organized and
existing  under the laws of the State of New York (the  "Company"),  promises to
pay     to    or     registered     assigns     the     principal     sum     of
                                          Dollars on  October 1, 2006,  together
----------------------------------------
with  interest at eight  percent (8%) per annum.  The  provisions on the back of
this  certificate  are  incorporated  as  if  set  forth  on  the  face  of  the
certificate.

                               Interest Payment Dates:
                               The first day of each calendar quarter

                               Record Dates:
                               The tenth day of the second month of the calendar
                               quarter

DATED:

Authenticated to be one of the
Debentures described in the
Indenture referred to herein:

THE BANK OF NEW YORK, as                       INTERVEST CORPORATION OF NEW YORK
  Registrar

By:                             (Seal)         By:
    ---------------------------                    -----------------------------
         Authorized Signatory                  President

                                               By:
                                                   ----------------------------
                                                   Secretary

                                       E-1

<PAGE>

                             (REVERSE OF DEBENTURE)

           Series   /  /01 Subordinated Debenture due October 1, 2006
                  -- --

         1.   Interest.  The Company  promises  to pay interest on the principal
              --------
amount of this Debenture at the rate per annum shown above. The Company will pay
interest  quarterly  on January  1, April 1, July 1 and  October 1 of each year.
With respect to Debentures sold on the date $4,000,000 or more of Debentures are
first approved for issuance (the "First Closing Date"),  interest will accrue on
principal from the First Closing Date. With respect to Debentures sold after the
First  Closing Date,  interest will accrue on principal  commencing on the first
day of the month of sale,  if the  Debenture is sold on or before the  fifteenth
day of the month,  or  commencing  on the sixteenth day of the month of sale, if
the  Debenture  is sold  after the  fifteenth  day of the month,  provided  that
interest shall not accrue from prior to the First Closing Date.  Debentures sold
after the First Closing Date shall be deemed sold on the date the Company (or an
underwriter  on its behalf)  receives  payment  therefor.  The first  payment of
interest shall be due on the first day of the second calendar quarter  following
the date of sale of the Debenture,  or such earlier date selected by the Company
without  requirement  of notice After the first  payment  date,  interest on the
Debenture will accrue from the most recent date to which interest has been paid.
Interest  will be computed on the basis of a 360 day year  consisting  of twelve
30-day months.

         2.   Method of Payment. The Company will pay interest on the Debentures
              -----------------
to the persons who are registered holders of Debentures at the close of business
on the tenth day of the  second  month of the  calendar  quarter.  Holders  must
surrender  Debentures  to a Paying  Agent to  collect  principal  payments.  The
Company will pay  principal  and interest in money of the United  States that at
the time of payment is legal tender for payment of public and private debts. The
Company may,  however,  pay  principal and interest by its check payable in such
money. It may mail payments to a holder's registered address.

         3.   Paying Agent and Registrar.  The  Bank  of  New  York,  a New York
              --------------------------
banking corporation, will act as Registrar and will authenticate the Debentures.
The Company  may change any Paying  Agent,  Registrar  or  co-Registrar  without
notice.

         4.   Indenture.  This Debenture is one of a duly  authorized  series of
              ---------
Debentures  issued by the Company under an Indenture dated as of October 1, 2001
(the "Indenture")  between the Company and The Bank of New York, as trustee (the
"Trustee").  The term "Debentures" being used herein refers to all Maturities of
Debentures  issued  under the  Indenture.  Capitalized  terms herein are used as
defined in the Indenture unless otherwise indicated. Reference is hereby made to
the  Indenture  for  a  description  of  the  rights,  obligations,  duties  and
immunities  of the  Trustee  and the  Debentureholders  and for  the  terms  and
conditions  upon which the Debentures  are and are to be issued.  The Debentures
are  general  unsecured  obligations  of the  Company  limited to the  aggregate
principal  amount of  $5,000,000,  of which a maximum of $1,000,000  will have a
maturity date of October 1, 2004, a maximum of  $2,000,000  will have a maturity
date of October 1, 2006,  and a maximum of $2,000,000  will have a maturity date
of October 1, 2008.

                                       E-2

<PAGE>

         5.   Optional  Redemption.  The  Company  may at its option  redeem the
              --------------------
Debentures of any CUSIP Number in whole or in part at any time.  The  redemption
price for  Debentures  will be equal to (i) the face amount of the Debentures to
be redeemed plus a 1% premium if the  redemption  date is prior to July 1, 2002,
and (ii) the face amount of the Debentures to be redeemed if the redemption date
is on or after  July 1, 2002.  In all  cases,  the  Debenture  holder  will also
receive interest accrued to the redemption date.

         6.   Selection  and  Notice  of  Redemption.  If less  than all of  the
              --------------------------------------
Debentures of any CUSIP Number are to be redeemed,  the  Registrar  shall select
the  Debentures to be redeemed by such method as the  Registrar  shall deem fair
and  appropriate,  or if the  Debentures  are  listed on a  national  securities
exchange,  in accordance  with the rules of such exchange.  The Registrar  shall
make the selection from the Debentures outstanding and not previously called for
redemption.  The Registrar may select for redemption  portions (equal to $10,000
or any integral  multiple  thereof) of the principal  amount of Debentures  that
have denominations  larger than $10,000.  Provisions of the Indenture that apply
to Debentures  called for redemption also apply to portions of Debentures called
for  redemption.  Notice of  redemption  will be mailed at least 30 days but not
more than 90 days before the redemption  date to each holder of Debentures to be
redeemed at his registered  address.  On and after the redemption date, which is
the date  specified by the Company in its notice,  interest  ceases to accrue on
Debentures or portions thereof called for redemption.

         7.   Denominations,  Transfer, Exchange. The Debentures are issuable in
              ----------------------------------
registered  form  without  coupons  in  denominations  of $10,000  and  integral
multiples of $10,000. A holder may transfer or exchange Debentures in accordance
with the Indenture.  A Debenture containing a particular CUSIP Number may not be
exchanged for a Debenture  containing  another  CUSIP Number.  The Registrar may
require a holder,  among other things, to furnish  appropriate  endorsements and
transfer  documents,  and to pay any taxes and fees required by law or permitted
by the  Indenture.  The Registrar need not transfer or exchange any Debenture or
portion of a Debenture  selected  for  redemption,  or transfer or exchange  any
Debentures  for a period  of 15 days  before a  selection  of  Debentures  to be
redeemed.

         8.   Persons Deemed Owners. The registered holder of a Debenture may be
              ---------------------
treated as the owner of it for all purposes.

         9.   Unclaimed Money. If money for the payment of principal or interest
              ---------------
remains  unclaimed for two years, the Trustee or Paying Agent will pay the money
back to the Company,  if the Company  requests  such  repayment  within one year
after such two year period that such money remains unclaimed.  If such unclaimed
money is so paid back to the Company, thereafter,  holders entitled to the money
must look to the Company for payment as general creditors,  unless an applicable
abandoned property law designates another person. If such unclaimed money is not
so paid back to the Company,  it may be disposed of by the Trustee in accordance
with applicable law.

                                       E-3

<PAGE>

         10.  Amendment, Supplement, Waiver. Subject  to certain exceptions, the
              -----------------------------
Indenture or the Debentures may be amended or supplemented, and any past default
or compliance with any provision may be waived,  with the consent of the holders
of a majority in principal  amount of the  outstanding  Debentures.  Without the
consent  of any  Debentureholder,  the  Company  may  amend  or  supplement  the
Indenture  or  the  Debentures  to  cure  any  ambiguity,  omission,  defect  or
inconsistency,  to comply with Article Five of the Indenture  (providing for the
assumption of the  obligations of the Company under the Indenture by a successor
corporation), or to make any change that does not adversely affect the rights of
any Debentureholder.

         11.  Defaults and Remedies.  The  Indenture  provides  that the Trustee
              ---------------------
will give the Debentureholders  notice of an uncured Default known to it, within
90 days  after  the  occurrence  of an  Event  of  Default  (as  defined  in the
Indenture),  or as soon as  practicable  after it learns of an Event of  Default
which occurred more than 90 days beforehand;  provided that,  except in the case
of Default in the payment of principal  of or interest on any of the  Debentures
or any amount due on  redemption,  the Trustee may withhold such notice if it in
good faith  determines that the withholding of such notice is in the interest of
the Debentureholders.  In case an Event of Default occurs and is continuing, the
Trustee or the holders of not less than 25% of aggregate principal amount of the
Debentures  then  outstanding,  by notice in writing to the Company  (and to the
Trustee if given by the Debentureholders),  may declare the principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Such
declaration may be rescinded by holders of a majority in principal amount of the
Debentures if all existing Events of Default (except  nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived and if the rescission  would not conflict with any judgment or decree.
The Indenture  requires the Company to file periodic reports with the Trustee as
to the absence of defaults.

         12.  Subordination. The indebtedness evidenced by all of the Debentures
              -------------
is, to the extent provided in the Indenture, subordinate and subject in right of
payment  to the  prior  payment  in full of all  Senior  Indebtedness,  and this
Debenture is issued subject to such provisions of the Indenture, and each holder
of this  Debenture  by  accepting  same,  agrees  to and  shall be bound by such
provisions.  "Senior Indebtedness" means Indebtedness of the Company outstanding
at any time, whether outstanding on the date hereof or hereafter created,  which
(i) is secured, in whole or in part, by any asset or assets owned by the Company
or a Subsidiary,  or (ii) arises from unsecured borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clauses (ii), (iii) or (iv) above.

                                       E-4

<PAGE>

         13.  Trustee  Dealings with the Company. The Trustee, in its individual
              ----------------------------------
or any other  capacity,  may make loans to, accept  deposits  from,  and perform
services  for the Company or its  Affiliates,  and may  otherwise  deal with the
Company or its Affiliates, as if it were not the Trustee.

         14.  No  Recourse  Against  Others.  A director,  officer,  employee or
              -----------------------------
stockholder,  as such,  of the  Company  shall  not have any  liability  for any
obligations  of the Company  under the  Debentures  or the  Indenture or for any
claim  based on,  in  respect  of or by reason  of,  such  obligations  or their
creation.  Each Debentureholder by accepting a Debenture waives and releases all
such  liability.  The waiver and release are part of the  consideration  for the
issue of the Debentures.

         15.   Authentication.  This  Debenture  shall  not  be  valid until the
               --------------
Registrar  signs the  certificate  of  authentication  on the other side of this
Debenture.

         16.  Abbreviations.  Customary abbreviations may be used in the name of
              -------------
the Debentureholder or an assignee,  such as: TEN COM (=tenants in common),  TEN
ENT (=tenants by entirety),  JT TEN (=joint  tenants with right of  survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to
Minors Act).

           The Company will furnish to any Debentureholder  upon written request
and without  charge a copy of the  Indenture.  Requests may be made to Intervest
Corporation  of New York, 10 Rockefeller  Plaza,  Suite 1015, New York, New York
10020-1903.

                                       E-5

<PAGE>

                                   ASSIGNMENT

If you want to  assign  this  Debenture,  fill in the form  below  and have your
signature  guaranteed by a commercial  bank or trust company or a member firm of
any national securities exchange registered under the Securities Exchange Act of
1934.

I or we assign and transfer this Debenture to

----------------------------------------------------------------------
(Please insert assignee's social security or tax identification number)

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

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

---------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
agent  to  transfer  this  Debenture on the books of the Company.  The agent may
substitute another to act for him.

Date:                             Your signature:
      -------------------------                   ------------------------------

                                        ----------------------------------------
                                       (Sign exactly as your name appears on the
                                        other side of this Debenture)

Signature Guarantee:
                     ------------------------------------

                                       E-6

<PAGE>

                                                                       Exhibit F
                                                                       ---------

             (FORM OF QUARTERLY DEBENTURE MATURING October 1, 2008)
Number R(           /08)-                                                  $
         -----------
                        INTERVEST CORPORATION OF NEW YORK
               Series   /  /01 Subordinated Debenture due October 1, 2008
                      -- --

           INTERVEST  CORPORATION OF NEW YORK, a corporation  duly organized and
existing  under the laws of the State of New York (the  "Company"),  promises to
pay     to    or     registered     assigns     the     principal     sum     of
                                          Dollars on  October 1, 2008,  together
-----------------------------------------
with interest at eight and one-half  percent (8 1/2%) per annum.  The provisions
on the back of this  certificate are incorporated as if set forth on the face of
the certificate.

                               Interest Payment Dates:
                               The first day of each calendar quarter

                               Record Dates:
                               The tenth day of the second month of the calendar
                               quarter

DATED:

Authenticated to be one of the Debentures described in the Indenture referred to
herein:

THE BANK OF NEW YORK, as                       INTERVEST CORPORATION OF NEW YORK
  Registrar

By:                               (Seal)       By:
    -----------------------------                  -----------------------------
         Authorized Signatory                  President

                                               By:
                                                   -----------------------------
                                                   Secretary

                                       F-1

<PAGE>

                             (REVERSE OF DEBENTURE)

           Series   /  /01 Subordinated Debenture due October 1, 2008
                  -- --

         1.   Interest.  The  Company  promises to pay interest on the principal
              --------
amount of this Debenture at the rate per annum shown above. The Company will pay
interest  quarterly  on January  1, April 1, July 1 and  October 1 of each year.
With respect to Debentures sold on the date $4,000,000 or more of Debentures are
first approved for issuance (the "First Closing Date"),  interest will accrue on
principal from the First Closing Date. With respect to Debentures sold after the
First  Closing Date,  interest will accrue on principal  commencing on the first
day of the month of sale,  if the  Debenture is sold on or before the  fifteenth
day of the month,  or  commencing  on the sixteenth day of the month of sale, if
the  Debenture  is sold  after the  fifteenth  day of the month,  provided  that
interest shall not accrue from prior to the First Closing Date.  Debentures sold
after the First Closing Date shall be deemed sold on the date the Company (or an
underwriter  on its behalf)  receives  payment  therefor.  The first  payment of
interest shall be due on the first day of the second calendar quarter  following
the date of sale of the Debenture,  or such earlier date selected by the Company
without  requirement  of notice After the first  payment  date,  interest on the
Debenture will accrue from the most recent date to which interest has been paid.
Interest  will be computed on the basis of a 360 day year  consisting  of twelve
30-day months.

         2.   Method of Payment. The Company will pay interest on the Debentures
              -----------------
to the persons who are registered holders of Debentures at the close of business
on the tenth day of the  second  month of the  calendar  quarter.  Holders  must
surrender  Debentures  to a Paying  Agent to  collect  principal  payments.  The
Company will pay  principal  and interest in money of the United  States that at
the time of payment is legal tender for payment of public and private debts. The
Company may,  however,  pay  principal and interest by its check payable in such
money. It may mail payments to a holder's registered address.

         3.   Paying Agent and Registrar.  The  Bank  of  New  York,  a New York
              --------------------------
banking corporation, will act as Registrar and will authenticate the Debentures.
The Company  may change any Paying  Agent,  Registrar  or  co-Registrar  without
notice.

         4.   Indenture.  This Debenture is one of a duly  authorized  series of
              ---------
Debentures  issued by the Company under an Indenture dated as of         1, 2001
                                                                 -------
(the "Indenture")  between the Company and The Bank of New York, as trustee (the
"Trustee").  The term "Debentures" being used herein refers to all Maturities of
Debentures  issued  under the  Indenture.  Capitalized  terms herein are used as
defined in the Indenture unless otherwise indicated. Reference is hereby made to
the  Indenture  for  a  description  of  the  rights,  obligations,  duties  and
immunities  of the  Trustee  and the  Debentureholders  and for  the  terms  and
conditions  upon which the Debentures  are and are to be issued.  The Debentures
are  general  unsecured  obligations  of the  Company  limited to the  aggregate
principal  amount of  $5,000,000,  of which a maximum of $1,000,000  will have a
maturity date of October 1, 2004, a maximum of  $2,000,000  will have a maturity
date of October 1, 2006,  and a maximum of $2,000,000  will have a maturity date
of October 1, 2008.

                                       F-2

<PAGE>

         5.   Optional  Redemption.  The  Company  may at its option  redeem the
              --------------------
Debentures of any CUSIP Number in whole or in part at any time.  The  redemption
price for Debentures  will be equal to: (i) the face amount of the Debentures to
be redeemed plus a 1% premium if the  redemption  date is prior to July 1, 2002,
and (ii) the face amount of the Debentures to be redeemed if the redemption date
is on or after  July 1, 2002.  In all  cases,  the  Debenture  holder  will also
receive interest accrued to the redemption date.

         6.   Selection  and  Notice  of  Redemption.  If less  than all of  the
              --------------------------------------
Debentures of any CUSIP Number are to be redeemed,  the  Registrar  shall select
the  Debentures to be redeemed by such method as the  Registrar  shall deem fair
and  appropriate,  or if the  Debentures  are  listed on a  national  securities
exchange,  in accordance  with the rules of such exchange.  The Registrar  shall
make the selection from the Debentures outstanding and not previously called for
redemption.  The Registrar may select for redemption  portions (equal to $10,000
or any integral  multiple  thereof) of the principal  amount of Debentures  that
have denominations  larger than $10,000.  Provisions of the Indenture that apply
to Debentures  called for redemption also apply to portions of Debentures called
for  redemption.  Notice of  redemption  will be mailed at least 30 days but not
more than 90 days before the redemption  date to each holder of Debentures to be
redeemed at his registered  address.  On and after the redemption date, which is
the date  specified by the Company in its notice,  interest  ceases to accrue on
Debentures or portions thereof called for redemption.

         7.   Denominations,  Transfer, Exchange. The Debentures are issuable in
              ----------------------------------
registered  form  without  coupons  in  denominations  of $10,000  and  integral
multiples of $10,000. A holder may transfer or exchange Debentures in accordance
with the Indenture.  A Debenture containing a particular CUSIP Number may not be
exchanged for a Debenture  containing  another  CUSIP Number.  The Registrar may
require a holder,  among other things, to furnish  appropriate  endorsements and
transfer  documents,  and to pay any taxes and fees required by law or permitted
by the  Indenture.  The Registrar need not transfer or exchange any Debenture or
portion of a Debenture  selected  for  redemption,  or transfer or exchange  any
Debentures  for a period  of 15 days  before a  selection  of  Debentures  to be
redeemed.

         8.   Persons Deemed Owners. The registered holder of a Debenture may be
              ---------------------
treated as the owner of it for all purposes.

         9.   Unclaimed Money. If money for the payment of principal or interest
              ---------------
remains  unclaimed for two years, the Trustee or Paying Agent will pay the money
back to the Company,  if the Company  requests  such  repayment  within one year
after such two year period that such money remains unclaimed.  If such unclaimed
money is so paid back to the Company, thereafter,  holders entitled to the money
must look to the Company for payment as general creditors,  unless an applicable
abandoned property law designates another person. If such unclaimed money is not
so paid back to the Company,  it may be disposed of by the Trustee in accordance
with applicable law.

         10.  Amendment, Supplement, Waiver.  Subject to certain exceptions, the
              -----------------------------
Indenture or the Debentures may be amended or supplemented, and any past default
or compliance with any provision may be waived,  with the consent of the holders
of a majority in principal  amount of the  outstanding  Debentures.  Without the
consent  of  any  Debentureholder,   the Company  may  amend  or supplement  the

                                       F-3

<PAGE>

or the Debentures to cure any ambiguity,  omission, defect or inconsistency,  to
comply with Article Five of the Indenture  (providing  for the assumption of the
obligations of the Company under the Indenture by a successor  corporation),  or
to  make  any  change  that  does  not  adversely   affect  the  rights  of  any
Debentureholder.

         11.  Defaults and Remedies.  The  Indenture  provides  that the Trustee
              ---------------------
will give the Debentureholders  notice of an uncured Default known to it, within
90 days  after  the  occurrence  of an  Event  of  Default  (as  defined  in the
Indenture),  or as soon as  practicable  after it learns of an Event of  Default
which occurred more than 90 days beforehand;  provided that,  except in the case
of Default in the payment of principal  of or interest on any of the  Debentures
or any amount due on  redemption,  the Trustee may withhold such notice if it in
good faith  determines that the withholding of such notice is in the interest of
the Debentureholders.  In case an Event of Default occurs and is continuing, the
Trustee or the holders of not less than 25% of aggregate principal amount of the
Debentures  then  outstanding,  by notice in writing to the Company  (and to the
Trustee if given by the Debentureholders),  may declare the principal of and all
accrued interest on all the Debentures to be due and payable  immediately.  Such
declaration may be rescinded by holders of a majority in principal amount of the
Debentures if all existing Events of Default (except  nonpayment of principal or
interest that has become due solely because of the acceleration) have been cured
or waived and if the rescission  would not conflict with any judgment or decree.
The Indenture  requires the Company to file periodic reports with the Trustee as
to the absence of defaults.

         12.  Subordination. The indebtedness evidenced by all of the Debentures
              -------------
is, to the extent provided in the Indenture, subordinate and subject in right of
payment  to the  prior  payment  in full of all  Senior  Indebtedness,  and this
Debenture is issued subject to such provisions of the Indenture, and each holder
of this  Debenture  by  accepting  same,  agrees  to and  shall be bound by such
provisions.  "Senior Indebtedness" means Indebtedness of the Company outstanding
at any time, whether outstanding on the date hereof or hereafter created,  which
(i) is secured, in whole or in part, by any asset or assets owned by the Company
or a Subsidiary,  or (ii) arises from unsecured borrowings by the Company from a
commercial  bank, a savings bank, a savings and loan  association,  an insurance
company, a company whose securities are traded in a national  securities market,
or any  wholly-owned  subsidiary of any of the  foregoing,  or (iii) arises from
unsecured  borrowings  by the Company  from any pension  plan (as defined in ss.
3(2) of the Employee  Retirement  Income  Security Act of 1974, as amended),  or
(iv) arises from  borrowings  by the Company  which are  evidenced by commercial
paper, or (v) other unsecured borrowings by the Company which are subordinate to
Indebtedness  of a type  described  in  clauses  (i),  (ii)  or (iv)  above  if,
immediately after the issuance thereof, the total capital,  surplus and retained
earnings of the Company exceed the aggregate of the outstanding principal amount
of such borrowings,  or (vi) is a guarantee or other liability of the Company of
or with respect to  Indebtedness  of a Subsidiary of a type  described in any of
clauses (ii), (iii) or (iv) above.

         13.  Trustee Dealings  with the Company. The Trustee, in its individual
              ----------------------------------
or any other  capacity,  may make loans to, accept  deposits  from,  and perform
services  for the Company or its  Affiliates,  and may  otherwise  deal with the
Company or its Affiliates, as if it were not the Trustee.

                                       F-4

<PAGE>

         14.  No Recourse  Against  Others.  A director,  officer,  employee  or
              ----------------------------
stockholder,  as such,  of the  Company  shall  not have any  liability  for any
obligations  of the Company  under the  Debentures  or the  Indenture or for any
claim  based on,  in  respect  of or by reason  of,  such  obligations  or their
creation.  Each Debentureholder by accepting a Debenture waives and releases all
such  liability.  The waiver and release are part of the  consideration  for the
issue of the Debentures.

         15.  Authentication.  This  Debenture  shall  not  be  valid  until the
              --------------
Registrar  signs the  certificate  of  authentication  on the other side of this
Debenture.

         16.  Abbreviations. Customary  abbreviations may be used in the name of
              -------------
the Debentureholder or an assignee,  such as: TEN COM (=tenants in common),  TEN
ENT (=tenants by entirety),  JT TEN (=joint  tenants with right of  survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gifts to
Minors Act).

           The Company will furnish to any Debentureholder  upon written request
and without  charge a copy of the  Indenture.  Requests may be made to Intervest
Corporation  of New York, 10 Rockefeller  Plaza,  Suite 1015, New York, New York
10020-1903.

                                       F-5

<PAGE>

                                   ASSIGNMENT

If you want to  assign  this  Debenture,  fill in the form  below  and have your
signature  guaranteed by a commercial  bank or trust company or a member firm of
any national securities exchange registered under the Securities Exchange Act of
1934.

I or we assign and transfer this Debenture to

----------------------------------------------------------------------
(Please insert assignee's social security or tax identification number)

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

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

----------------------------------------------------
(Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
agent  to  transfer  this Debenture  on the books of the Company.  The agent may
substitute another to act for him.

Date:                        Your signature:
      --------------------                   -----------------------------------

                                       -----------------------------------------
                                       (Sign exactly as your name appears on the
                                        other side of this Debenture)

Signature Guarantee:
                     ---------------------------------

                                       F-6

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