Document:

NLNK-2013.09.30-EX10.2

Exhibit 10.2

LICENSE AGREEMENT AMENDMENT

Inasmuch as NewLink Genetics Corporation of Ames, Iowa, and the Georgia Health Sciences University Research Institute (GHSURI, previously Medical College of Georgia Research Institute (MCGRI)) of Augusta, Georgia, have a valid and existing License Agreement related to the use of Indoleamine-2,3-Dioxygenase and its Inhibitors in Immuno-regulation (MCG case# 007-98, 011-98, 011-02, 003-03, 009-03, 005-06, 032-05, 023-07) dated September 13, 2005;

and

Inasmuch as the parties agree that the License Agreement contains a provision (Section 4.1) for the acquisition of new, related Improvement Technologies by NewLink arising at GHSURI after the Agreement was signed. 

It is Agreed  that the parties amend Section 4.1 to include additional language immediately following the original language of Section 4.1 with regard to patents co-owned by NewLink and GHSURI as such:

“In the event that Improvement Technologies are created after the signing of this Agreement and the patent on such Improvement Technology is co-owned by LICENSEE and GHSURI, there shall be a one-time License Fee of Ten Thousand Dollars ($10,000) per technology, upon payment of which the new technology is considered part of this Agreement.”   

and
 
Inasmuch as NewLink has reviewed a new Improvement Technology (NLG case#NLG-49, MCG case# 2013-042:  Combination enzymatic IDO inhibitors with 1-methyl-D-tryptophan, Provisional applications: US 61/809,125 and US 61/812065, Inventors: Mario Mautino, Nicholas Vahanian, Charles Link, David Munn, Andrew Mellor and Madhav Sharma), and wishes to exercise its option to incorporate this co-owned technology into the existing License Agreement technology portfolio under its standard royalty terms and use conditions,

It is Agreed:

That the parties amend the License Agreement relative to its Exhibit A, such that MCG case#2013-042 is to be included in the technology portfolio for development and commercialization by NewLink, effective the date that the License Fee of $10,000 is received at GHSURI.  

This present amendment shall hereby be considered part of the original License Agreement and is hereto agreed by representatives of both parties signing below.

GEORGIA HEALTH SCIENCES UNIVERSITY            NEWLINK GENETICS
RESEARCH INSTITUTE 

By:__/s/ Sarah White_______________                BY:__/s/ Nicholas Vahanian______________
Name:    Sarah White                        Name:      Nicholas Vahanian
Title:    Executive Director                    Title:    President

Date:__7/12/13_______                        Date:__7/3/2013_______Ex. 4.1 - 9.30.13

AMENDED AND RESTATED  DECLARATION OF TRUST
Foster Capital Trust I

Dated as of July 8, 2005

TABLE OF CONTENTS
	
			
	 
	 
	Page

	 
	ARTICLE I
	 

	 
	 INTERPRETATION AND DEFINITIONS
	 

	SECTION 1.1.
	Definitions
	5

	 
	 
	 

	 
	ARTICLE II
	 

	 
	ORGANIZATION
	 

	SECTION 2.1.
	Name
	11

	SECTION 2.2.
	Office
	11

	SECTION 2.3.
	Purpose
	11

	SECTION 2.4.
	Authority
	12

	SECTION 2.5.
	Title to Property of the Trust
	12

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

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

	SECTION 2.8.
	Powers and Duties of the Institutional Trustee
	14

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

	SECTION 2.10.
	Certain Rights of lnstitutional Trustee
	17

	SECTION 2.11.
	Delaware Trustee
	19

	SECTION 2.12.
	Execution of Documents
	19

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

	SECTION 2.14.
	Duration of Trust
	20

	SECTION 2.15.
	Mergers
	20

	 
	 
	 

	 
	ARTICLE III
	 

	 
	SPONSOR
	 

	SECTION 3.1.
	Sponsor's Purchase of Common Securities
	22

	SECTION 3.2.
	Responsibilities of the Sponsor
	22

	 
	 
	 

	 
	ARTICLE IV
	 

	 
	TRUSTEES AND ADMINISTRATORS
	 

	SECTION 4.1.
	Number of Trustees
	22

	 SECTION 4.2.
	Delaware Trustee
	23

	SECTION 4.3.
	Institutional Trustee; Eligibility
	23

	SECTION 4.4.
	Certain Qualifications of the Delaware Trustee Generally
	23

	SECTION 4.5.
	Administrators
	23

	SECTION 4.6.
	Initial Delaware Trustee
	24

	SECTION 4.7.
	Appointment, Removal and Resignation of the Trustees and the
Administrators
	24

	SECTION 4.8.
	Vacancies Among Trustees
	25

	SECTION 4.9.
	Effect of Vacancies
	26

	SECTION 4.10.
	Meetings of the  Trustees and the Administrators
	26

	SECTION 4.11.
	Delegation of Power
	26

	SECTION 4.12.
	Merger, Conversion, Consolidation or Succession to Business
	26

	 
	 
	 

	
			
	 
	ARTICLEV
	 

	 
	DISTRIBUTIONS
	 

	SECTION 5.1.
	Distributions
	27

	 
	 
	 

	 
	ARTICLE VI
	 

	 
	ISSUANCE OF SECURITIES
	 

	SECTION 6.1.
	General Provisions Regarding Securities
	27

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

	SECTION 6.3.
	Form and Dating
	29

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

	SECTION 6.5.
	Temporary Securities
	30

	SECTION 6.6.
	Cancellation
	30

	SECTION 6.7.
	Rights of Holders; Waivers of Past Defaults
	30

	 
	 
	 

	 
	ARTICLE VII
	 

	 
	DISSOLUTION AND TERMINATION OF TRUST
	 

	SECTION 7.I.
	Dissolution  and Termination  of Trust
	32

	 
	 
	 

	 
	ARTICLE VIII
	 

	 
	TRANSFER OF INTERESTS
	 

	SECTION 8.1.
	General
	33

	SECTION 8.2.
	Transfer Procedures  and Restrictions
	34

	SECTION 8.3.
	Deemed Security Holders
	36

	 
	 
	 

	 
	ARTICLE IX
	 

	 
	LIMITATION OF LIABILITY OF HOLDERS  OF SECURITIES, TRUSTEES  OR OTHERS
	 

	SECTION 9.1.
	Liability
	37

	SECTION 9.2.
	Exculpation
	37

	SECTION 9.3.
	Fiduciary Duty
	38

	SECTION 9.4. 
	Indemnification
	38

	SECTION 9.5.
	Outside Businesses
	41

	SECTION 9.6.
	Compensation; Fee
	41

	 
	 
	 

	 
	ARTICLE X
	 

	 
	ACCOUNTING
	 

	SECTION 10.1.
	Fiscal Year
	42

	SECTION 10.2.
	Certain Accounting Matters
	42

	SECTION 10.3.
	Banking
	42

	SECTION 10.4.
	Withholding
	43

	 
	 
	 

	 
	ARTICLE XI
	 

	 
	AMENDMENTS AND MEETINGS
	 

	SECTION 11.1.
	Amendments
	43

	SECTION 11.2.
	Meetings of the Holders of the Securities;  Action by Written
Consent
	45

	
			
	 
	 
	 

	 
	ARTICLE XII
	 

	 
	REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE
	 

	SECTION 12.1.
	Representations and Warranties of lnstitutional Trustee
	47

	SECTION 12.2.
	Representations and Warranties of Delaware Trustee
	47

	 
	 
	 

	 
	ARTICLE XIII
	 

	 
	MISCELLANEOUS
	 

	SECTION 13.1.
	Notices
	48

	SECTION 13.2.
	Governing Law
	49

	SECTION 13.3.
	Submission to Jurisdiction
	49

	SECTION 13.4.
	Intention of the Parties
	50

	SECTION 13.5.
	Headings
	50

	SECTION 13.6.
	Successors and Assigns
	50

	SECTION 13.7.
	Partial Enforceability
	50

	SECTION 13.8.
	Counterparts
	50

	 
	 
	 

	ANNEXES  AND EXHIBITS
	 

	ANNEX I 
	Terms of TP Securities and Common Securities
	1

	 
	 
	 

	EXHIBIT A-1
	Form of Capital Security Certificate
	1

	EXHIBIT A-2
	Form of Common Security Certificate
	A-2-1

AMENDED AND RESTATED DECLARATION OF TRUST OF
Foster Capital Trust I July 8, 2005
AMENDED AND RESTATED DECLARATION OF TRUST (this "Declaration"), dated and effective  as of July 8, 2005, by the Trustees (as defined  herein), the Administrators (as defined herein), the Sponsor (as defined herein) and the holders from time to time of undivided beneficial interests in the assets of the Trust (as defined herein) to be issued pursuant to this Declaration.

WHEREAS, the Delaware Trustee and the Sponsor established Foster Capital Trust I (the "Trust"), a statutory trust under the Statutory Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of July 6, 2005 (the "Original Declaration"), and a Certificate of Trust filed with the Secretary of State of the State of Delaware on July 6, 2005, for the sole purpose of issuing and selling certain securities representing undivided beneficial interests in the assets ofthe  Trust and investing the proceeds thereof in the Debentures (as defined herein) ofthe Debenture Issuer (as defined herein) in connection with the issuance of the Capital Securities (as defined herein); and
 
WHEREAS, as ofthe  date hereof, no interests in the assets of the Trust have been issued;

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

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

ARTICLE I 

INTERPRETATION AND DEFINITIONS

SECTION 1.1.  Definitions.  Unless the context otherwise requires:

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

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

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

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

(e)       a term defined in the Trust Indenture Act (as defined herein) has the same meaning when used in this Declaration unless otherwise defined in this Declaration or unless the context otherwise requires; and
(f)     a reference to the singular includes the plural and vice versa. "Additional Interest" has the meaning set forth in Section 3.06 of the Indenture. "Administrative Action" has the meaning set forth in paragraph 4(a) of Annex I. "Administrators" means each of Paul B. Kim and Kurt C. Felde, solely in such Person's capacity as Administrator of the Trust continued hereunder and not in such Person's individual capacity,  or  such  Administrator's  successor  in  interest  in  such  capacity,  or  any  successor appointed as herein provided.

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

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

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

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

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

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

"Calculation Agent" has the meaning set forth in Section 1.01 of the Indenture. "Capital Securities" has the meaning set forth in Section 6.l(a).
"Capital  Securities  Purchase  Agreement"  means  the  Capital  Securities  Purchase Agreement  dated as of July 6, 2005 among the Trust, the Sponsor and Alesco Preferred Funding VII, Ltd..

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

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

"Certificate"  means any certificate evidencing Securities.

"Certificate  of Trust" means the certificate of trust filed with the Secretary of State of the
State of Delaware  with respect to the Trust, as amended and restated from time to time. "Closing Date" means the date of execution and delivery of this Declaration.
"Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor legislation.

"Commission"  means the United States Securities and Exchange Commission. "Common Securities" has the meaning set forth in Section 6.1(a).
"Common  Security  Certificate"  means a definitive  Certificate  registered  in the name  of the Holder representing  a Common Security substantially  in the form of Exhibit A-2.

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

"Corporate  Trust  Office"  means  the  office  of  the  Institutional   Trustee  at  which  the corporate trust business of the Institutional Trustee shall, at any particular time, be principally administered,  which  office shall at all times be located  in the United  States  and at the date of execution  of this Declaration  is located  at 135 S. LaSalle  Street,  Suite  1511,  Chicago,  Illinois
60603, Attn: CDO Trust Services Group- Foster Capital Trust I.

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

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

"Debenture Issuer" means Foster Bankshares, Inc., a bank holding company incorporated in Delaware, in its capacity as issuer of the Debentures under the Indenture.

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

"Debentures" means the Junior  Subordinated Debt Securities due  July 8, 2035  to be issued by the Debenture Issuer under the Indenture.

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

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

"Delaware Trustee" has the meaning set forth in Section 4.2. "Direct Action" has the meaning set forth in Section 2.8(e).

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

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

"Distribution  Payment  Period"  means  the  period  from  and  including  a  Distribution Payment  Date, or  in  the case of the  first Distribution Payment Period,  the original  date  of issuance of the Securities, to, but excluding, the next succeeding Distribution Payment Date or, in the case of the last Distribution Payment Period, the Redemption Date, Special Redemption Date or Maturity Date (each as defined in the Indenture), as the case may be, for the related Debentures.

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

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

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

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

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

"Guarantee"   means  the  Guarantee   Agreement,   dated  as  of  the  Closing  Date,  of  the
Sponsor (the "Guarantor") in respect of the Capital Securities.

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

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

"Indenture"  means  the Indenture,  dated  as of the Closing  Date,  between  the Debenture Issuer and the Debenture  Trustee, and any indenture  supplemental thereto pursuant to which the Debentures  are to be issued.
"Indenture Event of Default" means an "Event of Default" as defined in the Indenture. "Institutional  Trustee"  means the Trustee meeting  the eligibility  requirements set forth in
Section 4.3.

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

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

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

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

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

"LIBOR Banking Day" has the meaning set forth in paragraph 2(b)(1) of Annex I. "LIBOR Business Day" has the meaning set forth in paragraph 2(b)(1) of Annex I. "LIBOR Determination Date" has the meaning set forth in paragraph 2(b)(1) of Annex I. "Liquidation" has the meaning set forth in paragraph  3 of Annex I.

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

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

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

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

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

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

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

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

"Paying Agent" has the meaning set forth in Section 6.2. "Payment Amount" has the meaning set forth in Section 5.1.
"Person" means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature.

"Placement Agreement" means the Placement Agreement relating to the offering and sale of Capital Securities.

"PORTAL" has the meaning set forth in Section 2.6(a)(i)(E). "Property Account" has the meaning set forth in Section 2.8(c). "Pro Rata" has the meaning set forth in paragraph 8 of Annex I.
"QIB" means a "qualified institutional buyer" as defined under Rule 144A.

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

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

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

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

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

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

"Restricted  Securities Legend" has the meaning set forth in Section 8.2(c). "Rule 144A" means Rule 144A under the Securities  Act.
"Rule 3a-5" means Rule 3a-5 under the Investment  Company Act. "Rule 3a-7" means Rule 3a-7 under the Investment  Company Act.
"Securities"  means the Common Securities and the Capital Securities, as applicable.

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

"Sponsor"  means Foster Bankshares,  Inc., a bank holding company  that is a U.S. Person incorporated  in Delaware,  or any successor  entity  in a merger,  consolidation or amalgamation that is a U.S. Person, in its capacity as sponsor of the Trust.

"Statutory  Trust Act" means Chapter 38 of Title 12 of the Delaware  Code, 12 Del. Code
§ 3801 et seq., as it may be amended from time to time, or any successor legislation. "Successor Delaware Trustee" has the meaning set forth in Section 4.7(e). "Successor Entity" has the meaning set forth in Section 2.15(b).
"Successor Institutional  Trustee" has the meaning set forth in Section 4.7(b). 

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

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

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

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

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

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

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

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

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

ARTICLE II 

ORGANIZATION

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

SECTION 2.2.  Office.  The address of the principal office of the Trust, which shall be in a state of the United States or the District of Columbia, is 5225 N. Kedzie Avenue, Chicago, Illinois 60625. On ten Business Days' written notice to the Institutional Trustee and the Holders of the Securities, the Administrators may designate another principal office, which shall be in a state of the United States or the District of Columbia.

SECTION 2.3.  Pumose.   The exclusive purposes and functions of the Trust are (a) to issue and sell the Securities representing undivided beneficial interests in the assets of the Trust, (b) to invest the gross proceeds from such sale to acquire the Debentures, (c) to facilitate direct investment in the assets of the Trust through issuance of the Common Securities and the Capital Securities and (d) except as otherwise limited herein, to engage 

in only those other activities incidental thereto that are deemed necessary or advisable by the Institutional Trustee, including, without limitation, those activities specified in this Declaration. The Trust shall not borrow money, issue debt or reinvest proceeds derived from investments, pledge any of its assets, or otherwise undertake (or permit to be undertaken) any activity that would cause the Trust not to be classified for United States federal income tax purposes as a grantor trust.

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

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

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

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

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

(A)     the issuance and sale of the Securities;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i)     the taking of any action relating to the Securities Act;

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

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

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

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

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

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

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

SECTION 2.7.  Prohibition  of Actions by the Trust and the Trustees.   The Trust shall not, and the Institutional  Trustee and the Administrators shall not, and the Administrators shall cause the Trust not to, engage in any activity  other than as required or authorized  by this Declaration. In particular,  the Trust  shall  not, and the Institutional  Trustee  and the Administrators shall  not cause the Trust to:

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

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

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

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

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

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

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

SECTION 2.8.  Powers and Duties of the Institutional  Trustee.

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

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

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

with Section  5.1. Funds in the Property  Account shall be held uninvested  until disbursed in accordance  with this Declaration;

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

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

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

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

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

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

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

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

(h)     The Institutional Trustee must exercise the powers set forth in this Section

2.8 in a manner that is consistent with the purposes and functions of the Trust set out in Section
2.3, and the Institutional Trustee shall not take any action that is inconsistent with the purposes and functions of the Trust set out in Section 2.3.

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

(a)       The Institutional Trustee, before the occurrence of any Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) and after the curing of all Events of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Declaration and no implied covenants shall be read into this Declaration against the Institutional Trustee. In case an Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.1O(m) hereof)), has occurred (that has not been cured or waived pursuant to Section 6.8), the Institutional Trustee shall exercise such of the rights and powers vested in it by this Declaration, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

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

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

(d)       No  provision  of  this  Declaration  shall  be  construed  to  relieve  the Institutional Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct 

or bad faith with respect to matters that are within the authority of the Institutional Trustee under this Declaration, except that:

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

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

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

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

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

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

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

(b)       if  (i) in  performing its  duties  under this Declaration, the  Institutional Trustee is required to decide between alternative courses of action, (ii) in construing any of the provisions of this Declaration, the Institutional Trustee finds the same ambiguous or inconsistent with any other provisions contained herein, or (iii) the Institutional Trustee is unsure of the application of any provision of this Declaration, then, except as to any matter as to which the Holders of Capital Securities are entitled to vote under the terms of this Declaration, the Institutional Trustee may deliver a notice to the Sponsor requesting the Sponsor's opinion as to the course of action to be taken and the Institutional Trustee shall take such action, or refrain from taking such action, as the Institutional Trustee in its sole discretion shall deem advisable and 

in the best interests of the Holders, in which event the Institutional Trustee shall have no liability except for its own negligence or willful misconduct;

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

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

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

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

(g)       the Institutional Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Declaration at the request or direction of any of the Holders pursuant to this Declaration, unless such Holders shall have offered to the Institutional Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; provided, that nothing contained in this Section 2.1O(g) shall be taken to relieve the Institutional Trustee, upon the occurrence of an Event of Default (of which the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)) that has not been cured or waived, of its obligation to exercise the rights and powers vested in it by this Declaration;

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

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

(j)        whenever in the administration of this Declaration the Institutional Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Institutional Trustee (i) may request instructions from the Holders of the Common Securities 

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

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

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

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

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

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

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

SECTION 2.12.  Execution of Documents.  Unless otherwise determined in writing by the Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the Institutional Trustee, or any one or more of 

the Administrators, as the case may be, is authorized to execute and deliver on behalf of the Trust any documents, agreements, instruments or certificates that the Trustees or the Administrators, as the case may be, have the power and authority to execute pursuant to Section 2.6.

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

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

SECTION 2.15.  Mergers.

(a)      The Trust may not consolidate, amalgamate, merge with or into, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to any corporation or other Person, except as described in this Section 2.15 and except with respect to the distribution of Debentures to Holders of Securities pursuant to Section 7.l(a)(iv)  of the Declaration or Section 4 of Annex I.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(c)       Notwithstanding  Section  2.15(b),  the  Trust  shall  not,  except  with  the consent of Holders of 100% in liquidation amount of the Securities, consolidate, amalgamate, merge with or into, or be replaced by, or convey, transfer or lease its properties and assets as an entirety or 

substantially as an entirety to, any other Person or permit any other Person to consolidate, amalgamate, merge with or into, or replace it if such consolidation, amalgamation, merger, replacement, conveyance, transfer or lease would cause the Trust or Successor Entity to be classified as other than a grantor trust for United States federal income tax purposes.

ARTICLE III 

SPONSOR

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

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

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

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

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

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

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

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

(b)       after  the  issuance of  any  Securities,  the  number  of  Trustees  may  be increased or decreased by vote of the Holder of a Majority in liquidation amount of the Common Securities voting as a class at a meeting of the Holder of the Common Securities; provided, however, that there shall be a Delaware Trustee if required by Section 4.2; and there shall always be one Trustee  who shall  be the Institutional 

Trustee, and such Trustee  may also serve as Delaware Trustee if it meets the applicable requirements, in which case Section 2.11 shall have no application to such entity in its capacity as Institutional Trustee.

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

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

(b)       if not a natural person, an entity which is organized under the laws of the United States or any state thereof or the District of Columbia, has its principal place of business in the State of Delaware, and otherwise meets the requirements of applicable law, including
§3807 of the Statutory Trust Act.

SECTION 4.3.  Institutional Trustee; Eligibility.

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

(i)    not be an Affiliate of the Sponsor;

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

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

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

(c)       If the Institutional Trustee has or shall acquire any "conflicting interest" within the meaning of § 31O(b) of the Trust Indenture Act, the Institutional Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to this Declaration.

(d)     The initial Institutional Trustee shall be LaSalle Bank National Association.

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

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

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

SECTION 4.6.  Initial  Delaware  Trustee.    The  initial  Delaware  Trustee  shall  be
Christiana Bank & Trust Company.

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

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

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

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

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for the appointment of a successor Relevant Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a successor Relevant Trustee or Trustees.

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

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

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

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

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

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

SECTION 4.8.  Vacancies Among Trustees.  If a Trustee ceases to hold office for any reason and the number of Trustees is not reduced pursuant to Section 4.1, or if the number of Trustees is increased pursuant to Section 4.1, a vacancy shall occur. A resolution certifying the existence of such vacancy by the Trustees or, if there 

are more than two, a majority of the Trustees shall be conclusive evidence of the existence of such vacancy. The vacancy shall be filled with a Trustee appointed in accordance with Section 4.7.

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

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

SECTION 4.11.  Delegation of Power.

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

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

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

Any Person into which the Institutional Trustee or the Delaware Trustee, as the case maybe, may be merged or converted or with which either may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Institutional Trustee or the Delaware Trustee, as the case may be, shall be a party, or any Person succeeding to all or substantially all the corporate trust business of 

26

the Institutional Trustee or the Delaware Trustee, as the case may be, shall be the successor of the Institutional Trustee or the Delaware Trustee, as the case may be, hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided such Person shall be otherwise qualified and eligible under this Article and, provided, further, that such Person shall file an amendment to the Certificate of Trust with the Secretary of State of the State of Delaware as contemplated in Section 4.7(i).

ARTICLE V 

DISTRIBUTIONS

SECTION 5.1.  Distributions.

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

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

ARTICLE VI 

ISSUANCE OF SECURITIES

SECTION 6.1.  General Provisions Regarding Securities.

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

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of Distributions and payments upon liquidation, redemption and otherwise are subordinated to the rights to payment of the Holders of the Capital Securities.

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

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

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

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

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

(a)       The Trust shall maintain in an office or agency where the Securities may be presented for payment (the "Paying Agent"), and an office or agency where Securities may be presented for registration of transfer or exchange (the "Transfer Agent"). The Trust hereby appoints the Institutional Trustee as Paying Agent and Transfer Agent at LaSalle Bank National Association, CDO Trust Services Group, 135 South LaSalle Street, Suite 1511, Chicago, Illinois
60603 -Foster Capital Trust I. The Trust shall also keep or cause to be kept a register for the purpose of registering Securities and transfers and exchanges of Securities, such register to be
held by a registrar (the "Registrar"). The Administrators may appoint the Paying Agent, the
Registrar and the Transfer Agent, and may appoint one or more additional Paying Agents, one or
more co-Registrars, or one or more co-Transfer Agents in such other locations as it shall determine. The term "Paying Agent" includes any additional Paying Agent, the term "Registrar" includes any additional Registrar or co-Registrar and the term "Transfer Agent" includes any additional Transfer Agent or co-Transfer Agent. The Administrators may change any Paying Agent, Transfer Agent or Registrar at any time without prior notice to any Holder. The Administrators shall notify the Institutional Trustee of the name and address of any Paying Agent, Transfer Agent and Registrar not a party to this Declaration. The Administrators hereby initially appoint the Institutional Trustee to act as Registrar for the Capital Securities and the Common Securities at its Corporate Trust Office. The Institutional Trustee or any of its Affiliates in the United States may act as Paying Agent, Transfer Agent or Registrar.

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

SECTION 6.3.  Form and Dating.

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

(b)       The Capital Securities sold by the Trust to the initial purchasers pursuant to the Placement Agreement and the Capital Securities Purchase Agreement shall be issued in definitive  form,  registered  in the  name  of the  Holder  thereof,  without  coupons  and  with  the Restricted Securities Legend.

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

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

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

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

(a)       The  legal  title  to  the  Trust  Property  is  vested  exclusively  in  the Institutional Trustee (in its capacity as such) in accordance with Section 2.5, and the Holders shall not have any right or title therein other than the undivided beneficial interest in the assets of the Trust conferred by their Securities and they shall have no right to call for any partition or division of property, profits or rights of the Trust except as described below. The Securities shall be personal property giving only the rights specifically set forth therein and in this Declaration. The  Securities  shall  have  no,  and  the  issuance  of  the  Securities  shall  not  be subject  to, preemptive or other similar rights and when issued and delivered to Holders against payment of the purchase price therefor, the Securities will be fully paid and nonassessable by the Trust.

(b)       For so  long as any Capital Securities remain outstanding, if, upon an Indenture Event of Default under Section 5.01(c), (e) or (f)  of the Indenture, the Debenture Trustee  fails  or  the  holders  of  not  less  than  25%  in  principal  amount  of  the  outstanding Debentures fail to declare the principal of all of the Debentures to be immediately due and payable, the Holders of not les·s than a Majority in liquidation amount of the Capital Securities then outstanding shall have the right to make such declaration by a notice in writing to the Institutional Trustee, the Sponsor and the Debenture Trustee.

(c)       Upon an Indenture Event of Default under Sections 5.01(c), (e) or (f)  at any time after a declaration of acceleration of maturity of the Debentures has been made and before a judgment or decree 

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for payment of the money due has been obtained by the Debenture Trustee as provided in the Indenture, if the Institutional Trustee, subject to the provisions hereof, fails to annul any such declaration and waive such default, the Holders  of not less than  a Majority in liquidation amount of the Capital Securities, by written notice to the Institutional Trustee, the Sponsor and the Debenture Trustee, may rescind and annul such declaration and its consequences if:

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

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

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

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

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

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

written notice that has been canceled pursuant to the proviso to the preceding sentence, in which event a new record date shall be established pursuant to the provisions of this Section 6.7.

(f)        Except as otherwise  provided  in this Section 6.7, the Holders of not less than a Majority in liquidation  amount of the Capital Securities may, on behalf of the Holders of all the Capital Securities, waive any past default or Event of Default and its consequences.  Upon such waiver, any such default or Event of Default shall cease to exist, and any default or Event of Default  arising  therefrom  shall  be  deemed  to  have  been  cured,  for  every  purpose  of  this Declaration,  but no such  waiver  shall extend  to any subsequent  or other  default  or Event  of Default or impair any right consequent thereon.

ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST 

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

(i)        unless earlier dissolved, on July 8, 2040, the expiration of the term of the Trust;

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

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

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

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

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

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

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

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

ARTICLE VIII TRANSFER OF INTERESTS

SECTION 8.1.  General.

(a)        Subject  to  Section  6.4  and  Section  8.1(c),  when  Capital  Securities  are presented to the Registrar with a request to register a transfer or to exchange them for an equal number of Capital Securities represented by different Certificates, the Registrar shall register the transfer or make the exchange if the requirements  provided for herein for such transactions  are met. To permit registrations of transfers and exchanges, the Trust shall issue and the Institutional Trustee shall authenticate Capital Securities at the Registrar's request.

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

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

(d)       The  Registrar  shall  provide  for  the  registration   of  Securities  and  of transfers of Securities, which will be effected without charge but only upon payment (with such indemnity as the Registrar may require) in respect of any tax or other governmental charges that may be imposed in relation to it. Upon surrender for registration of transfer of any Securities, the Registrar  shall cause one or more new Securities  to be issued  in the  name of the designated transferee  or  transferees.  Any  Security  issued  upon  any  registration  of  transfer  or  exchange pursuant to the terms of this Declaration shall evidence the same Security and shall be entitled to the same benefits under this Declaration  as the Security  surrendered  upon such registration  of transfer   or   exchange.   Every   Security   surrendered   for   registration   of   transfer   shall   be accompanied  by  a  written  instrument  of  transfer  in  form  satisfactory  to  the  Registrar  duly executed by the Holder or such Holder's attorney duly authorized in writing. Each Security surrendered for registration  of transfer shall be canceled by the Institutional  Trustee pursuant to Section  6.6.    A  transferee  of  a  Security  shall  be  entitled  to  the  rights  and  subject  to  the obligations  of  a  Holder  hereunder  upon  the  receipt  by  such  transferee  of  a  Security.  By acceptance of a Security, each transferee shall be deemed to have agreed to be bound by this Declaration.

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

register the transfer or exchange of any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.
SECTION 8.2.  Transfer Procedures and Restrictions.

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

(b)       When Capital Securities are presented to the Registrar  (x) to register the transfer  of  such  Capital  Securities,  or  (y)  to  exchange  such  Capital  Securities  for  an  equal number of Capital Securities represented by different Certificates, the Registrar shall register the transfer or make the exchange as requested if its reasonable requirements for such transaction are met; provided, however, that the Capital Securities surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Administrators, the Institutional Trustee and the Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing.

(c)       Except as permitted by Section 8.2(a), each Capital Security shall bear a legend (the "Restricted Securities Legend") in substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED  UNDER THE SECURITIES  ACT OF  1933,  AS  AMENDED  (THE  "SECURITIES   ACT"),  OR  ANY  STATE  SECURITIES LAWS OR ANY OTHER APPLICABLE  SECURITIES  LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,  TRANSFERRED,   PLEDGED,  ENCUMBERED  OR  OTHERWISE  DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION  OR UNLESS SUCH TRANSACTION  IS EXEMPT  FROM,  OR  NOT  SUBJECT  TO,  THE  REGISTRATION   REQUIREMENTS   OF THE  SECURITIES   ACT.  THE  HOLDER  OF  THIS  SECURITY  BY  ITS  ACCEPTANCE HEREOF  AGREES  TO  OFFER,  SELL  OR  OTHERWISE  TRANSFER  SUCH  SECURITY ONLY (A) TO THE DEBENTURE  ISSUER  OR THE  TRUST,  (B) PURSUANT  TO RULE 144A  UNDER  THE  SECURITIES  ACT  ("RULE  144A")  TO  A  PERSON  THE  HOLDER REASONABLY  BELIEVES  IS A "QUALIFIED  INSTITUTIONAL  BUYER"  AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER  IS  BEING  MADE  IN  RELIANCE  ON  RULE  144A,  (C)  TO  A  "NON  U.S. PERSON"   IN   AN   "OFFSHORE   TRANSACTION"    PURSUANT    TO   REGULATION S UNDER  THE  SECURITIES   ACT,  (D)  PURSUANT   TO  AN  EXEMPTION   FROM  THE REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT TO AN "ACCREDITED INVESTOR"  WITHIN  THE  MEANING  OF  SUBPARAGRAPH (a)  (1),  (2), (3)  OR  (7)  OF RULE 501 UNDER THE SECURITIES  ACT THAT IS ACQUIRING  THE SECURITY  FOR ITS OWN  ACCOUNT,  OR FOR  THE  ACCOUNT  OF  SUCH  AN  "ACCREDITED INVESTOR,"  FOR  INVESTMENT  PURPOSES  AND  NOT  WITH  A  VIEW  TO,  OR  FOR OFFER  OR  SALE  IN  CONNECTION   WITH,  ANY  DISTRIBUTION   IN  VIOLATION  OF THE 

SECURITIES  ACT, OR (E) PURSUANT  TO ANOTHER  AVAILABLE  EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF THE SECURITIES  ACT, SUBJECT TO THE DEBENTURE  ISSUER'S  AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE  OR  TRANSFER   PURSUANT   TO   CLAUSES   (D)  OR   (E)   TO  REQUIRE   THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION  SATISFACTORY TO EACH OF THEM IN ACCORDANCE  WITH THE AMENDED  AND RESTATED  DECLARATION  OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE  ISSUER OR THE TRUST. THE HOLDER  OF THIS SECURITY  BY ITS ACCEPTANCE  HEREOF  AGREES  THAT  IT WILL COMPLY  WITH THE FOREGOING RESTRICTIONS.

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

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

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

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

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

(e)       Each party hereto understands and hereby agrees that the Initial Purchaser is intended solely to be an  interim holder of the Capital Securities and is purchasing such securities  to  facilitate  consummation  of  the  transactions  contemplated  herein  and  in  the documents ancillary hereto. Notwithstanding any provision in this Declaration to the contrary, the Initial Purchaser shall have the right upon notice (a "Transfer Notice") to the Institutional Trustee and the Sponsor to transfer title in and to the Capital Securities; provided the Initial Purchaser shall take reasonable steps to ensure that such transfer is exempt from registration under the Securities Act of 1933, as amended, and rules promulgated thereunder. Any Transfer Notice delivered to the Institutional Trustee and Sponsor pursuant to the preceding sentence shall indicate the aggregate liquidation amount of Capital Securities being transferred, the name and address   of   the   transferee   thereof   (the   "Transferee")   and   the   date   of   such   transfer. Notwithstanding any provision in this Declaration to the contrary, the transfer by the Initial Purchaser of title in and to the Capital Securities pursuant to a Transfer Notice shall not be subject to any requirement relating to Opinions of Counsel, Certificates of Transfer or any other Opinion or Certificate applicable to transfers hereunder and relating to Capital Securities.

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

SECTION 8.3.  Deemed Security Holders.

The Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the Registrar may treat the Person in whose name any Certificate shall be registered on the books and records of the Trust as the sole holder of such Certificate and of the Securities represented by such Certificate for purposes of 

receiving Distributions and for all other purposes whatsoever and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such Certificate or in the Securities represented by such Certificate on the part of any Person, whether or not the Trust, the Administrators, the Trustees, the Paying Agent, the Transfer Agent or the Registrar shall have actual or other notice thereof.

ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS 
OF SECURITIES, TR'USTEES OR OTHERS

SECTION 9.1.  Liability.

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

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

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

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

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

SECTION 9.2.  Exculpation.

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

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

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

SECTION 9.3.  Fiduciary Duty.

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

(b)       Whenever  in  this  Declaration  an  Indemnified  Person 1s permitted  or required to make a decision:

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

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

SECTION 9.4.  Indemnification.

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

and in a manner which such Person reasonably believed to be in or not opposed to the best interests of the Trust, and, with respect to any criminal action or proceeding, had reasonable cause to believe that such conduct was unlawful.

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

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

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

(v)       To  the  fullest  extent  permitted  by  law,  expenses  (including attorneys' fees and expenses) incurred by an Indemnified Person in defending a civil, criminal, administrative or investigative action, suit or proceeding referred to in paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if  it  shall  ultimately  be  determined  that  such  Person  is  not  entitled  to  be indemnified by the Sponsor as authorized in this Section 9.4(a). Notwithstanding the foregoing, no advance shall be made by the Sponsor if a determination is reasonably and promptly made (1) in the case of a Company Indemnified Person (A) by the Administrators by a majority vote of a Quorum of disinterested Administrators, (B) if such a Quorum is not obtainable, or, even 

if obtainable, if a Quorum of disinterested Administrators so directs, by independent legal counsel in a written opinion or (C) by the Common Security Holder of the Trust, that, based  upon  the  facts  known  to  the  Administrators, counsel  or  the  Common Security Holder at the time such determination is made, such Indemnified Person acted in bad faith or in a manner that such Person either believed to be opposed to or did not believe to be in the best interests of the Trust, or, with respect to any criminal proceeding, that such Indemnified Person believed or had reasonable cause to believe such conduct was unlawful, or (2) in the case of a Fiduciary Indemnified Person, by independent legal counsel in a written opinion that, based upon the facts known to the counsel at the time such determination is made, such Indemnified Person acted in  bad faith or in a  manner that  such Indemnified Person either believed to  be opposed to or did  not believe to be in the best interests of the Trust, or, with respect to any criminal proceeding, that such Indemnified Person believed or had reasonable cause to believe such conduct was unlawful. In no event shall any advance be made (i) to a Company Indemnified Person in instances where the Administrators, independent legal counsel or the Common Security Holder reasonably determine that such Person deliberately breached such Person's duty to  the Trust or  its Common or  Capital Security Holders or (ii) to a Fiduciary Indemnified Person in instances where independent legal counsel promptly and reasonably determines in a written opinion that such Person  deliberately  breached  such Person's  duty to the Trust or its Common  or
Capital Security Holders.

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

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

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

(e)       For purposes of this Section 9.4, references to "the Trust" shall include, in addition to the resulting or surviving entity, any constituent entity (including any constituent of a constituent)  absorbed in a consolidation  or merger, so that any Person who is or was a director, trustee, officer or employee of such constituent 

entity, or is or was serving at the request of such constituent entity as a director, trustee, officer, employee or agent of another entity, shall stand in the  same  position  under  the  provisions  of  this  Section  9.4  with  respect  to  the  resulting  or surviving entity as such Person would have with respect to such constituent  entity if its separate existence had continued.

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

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

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

SECTION 9.6.  Compensation; Fee.

(a)        Subject  to  the  provisions  set  forth  in  the  Fee  Agreement  between  the Institutional  Trustee,  Cohen  Bros.  & Company  and  the  Company  of even  date  herewith,  the Sponsor agrees:

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

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

counsel), except any such expense, disbursement or advance attributable to their negligence or willful misconduct.

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

ARTICLE X 

ACCOUNTING

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

SECTION 10.2.  Certain Accounting Matters.

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

(b)       The Administrators  shall either (i) cause each Form 10-K and Form 10-Q prepared by the Sponsor and filed with the Commission in accordance with the Exchange Act to be delivered to each Holder of Securities, within 90 days after the filing of each Form 10-K and within 30 days after the filing of each Form 10-Q or (ii) cause to be prepared  at the principal office  of  the  Trust  in  the  United  States,  as  defined  for  purposes  of  Treasury  Regulations
§ 301.7701-7,  and delivered to each ofthe Holders of Securities, within 90 days after the end of each Fiscal Year of the Trust, annual financial statements of the Trust, including a balance sheet of the Trust as of the end of such Fiscal Year, and the related statements of income or loss.

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

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

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

SECTION 10.4.  Withholding.  The Institutional Trustee or any Paying Agent and the Administrators shall comply with all withholding requirements under United States federal, state and local law. As a condition to the payment of any principal of or interest on any Debt Security without the imposition  of withholding  tax, the Institutional  Trustee  or any Paying  Agent shall require the previous delivery of properly completed  and signed applicable  U.S. federal income tax certifications  (generally,  an  Internal  Revenue  Service  Form  W-9  (or  applicable  successor form) in the case of a person  that is a "United  States  person"  within  the meaning  of Section 7701(a)(30)  of  the  Code  or  an  Internal  Revenue  Service  Form  W-8  (or  applicable  successor form) in the case of a person that is not a "United States person" within the meaning of Section 7701(a)(30)  of the Code) and any other certification  acceptable  to it to enable the Institutional Trustee or any Paying Agent and the Trustee to determine their respective  duties and liabilities with respect to any taxes or other charges that they may be required to pay, deduct or withhold in respect of such Debt Security or the holder of such Debt Security under any present or future law or regulation of the United States or any political subdivision thereof or taxing authority therein or to comply with any reporting or other requirements under any such law or regulation. The Administrators  shall file required forms with applicable  jurisdictions  and, unless an exemption from withholding is properly established  by a Holder, shall remit amounts withheld with respect to the Holder to applicable jurisdictions. To the extent that the Institutional Trustee or any Paying Agent  is  required  to  withhold  and  pay  over  any  amounts  to  any  authority  with  respect  to distributions   or  allocations  to  any  Holder,  the  amount  withheld  shall  be  deemed  to  be  a Distribution to the Holder in the amount of the withholding. In the event of any claimed overwithholding,  Holders shall be limited to an action against the applicable  jurisdiction.  If the amount   required   to   be  withheld   was  not   withheld   from   actual   Distributions   made,   the Institutional Trustee or any Paying Agent may reduce subsequent Distributions  by the amount of such withholding.

ARTICLE XI 

AMENDMENTS AND MEETINGS

SECTION 11.1.  Amendments.

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

(i)     the Institutional Trustee,

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

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

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

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

(i)        unless the Institutional Trustee shall have first received

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

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

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

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

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

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

(D)      cause the Debenture  Issuer to be unable to treat an amount equal  to  the  Liquidation  Amount  of  the  Capital  Securities  as  "Tier  1
Capital" for purposes of the capital adequacy guidelines of (x) the Federal Reserve (or, if the Debenture  Issuer is not a bank holding company, such guidelines or policies applied to the Debenture Issuer as if the Debenture Issuer  were  subject  to  such  guidelines  of  policies)  or  of  (y) any  other regulatory authority having jurisdiction over the Debenture Issuer.

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

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

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

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

(g)        Subject  to  Section  11.1(a),  this  Declaration   may  be  amended  by  the Institutional  Trustee  and  the  Holder  of  a  Majority  in  liquidation   amount  of  the  Common Securities without the consent of the Holders of the Capital Securities to:

(i)     cure any ambiguity;

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

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

(iv)      modify,  eliminate  or add to any  provision  of this Declaration  to such  extent  as may  be  necessary  or desirable,  including,  without  limitation,  to ensure  that  the  Trust  will  be  classified  for  United  States  federal  income  tax purposes at all times as a grantor trust and will not be required  to register as an Investment  Company  under  the  Investment  Company  Act  (including  without limitation  to  conform  to  any  change  in  Rule  3a-5,  Rule  3a-7  or  any  other applicable   rule   under   the   Investment   Company   Act   or   written   change   in interpretation  or application  thereof  by any legislative  body, court,  government agency  or  regulatory   authority)  which  amendment   does  not  have  a  material adverse effect on the right, preferences or privileges of the Holders of Securities; provided, however, that no such modification,  elimination  or addition referred to in clauses (i), (ii), (iii) or (iv) shall adversely affect the powers, preferences or rights of Holders of Capital Securities.

SECTION 11.2.  Meetings ofthe Holders ofthe Securities; Action by Written Consent. 
(a)    Meetings  of the Holders  of any class of Securities  may be called  at any
time by the Administrators  (or as provided in the terms of the Securities) to consider and act on
any matter on which Holders of such class of Securities are entitled to act under the terms of this Declaration,  the terms of the Securities or the rules of any stock exchange on which the Capital Securities are listed or admitted for trading, if any. The Administrators  shall call a meeting of the Holders  of such class if directed  to do so by the Holders  of not less than 10% in liquidation amount   of  such  class  of  Securities.   Such  direction   shall  be  given   by  delivering   to  the Administrators  one or more notices in a writing stating that the signing Holders of the Securities wish to call a meeting and indicating the general or specific purpose for which the meeting is to be called. Any Holders of the Securities calling a meeting shall specify in writing the Certificates held  by the  Holders  of  the  Securities  exercising  the  right  to  call  a meeting  and  only  those Securities represented by such Certificates shall be counted for purposes of determining  whether the required percentage set forth in the second sentence of this paragraph has been met.

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

(i)        notice of any such meeting shall be given to all the Holders of the Securities having a right to vote thereat at least 7 days and not more than 60 days before the date of such meeting. Whenever a vote, consent or approval of the Holders of the Securities is permitted or required under this Declaration or the rules of any stock exchange on which the Capital Securities are listed or admitted for trading, if any, such vote, consent or approval may be given at a meeting of the Holders of the Securities. Any action that may be taken at a meeting of the Holders of the Securities may be taken without a meeting if a consent in writing setting 

forth the action so taken is signed by the Holders of the Securities owning not less than the minimum amount of Securities that would be necessary to authorize or take such action at a meeting at which all Holders of the Securities having a right to vote thereon were present and voting. Prompt notice of the taking of action without a meeting shall be given to the Holders of the Securities entitled to  vote  who  have not consented in  writing. The Administrators may specify that any written ballot submitted to the Holders of the Securities for the purpose of taking any action without a meeting shall be returned to the Trust within the time specified by the Administrators;

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

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

ARTICLE XII 

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

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

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

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

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

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

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

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

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

(a)        if it is not a natural person, the Delaware Trustee is duly organized, validly existing and has its principal place of business in the State of Delaware;

(b)       if it is not a natural person, the execution, delivery and performance by the Delaware Trustee of this Declaration has been duly authorized by all necessary corporate action on the part of the Delaware Trustee. This Declaration has been duly executed and delivered by the Delaware Trustee, and under Delaware law (excluding any securities laws) constitutes a legal, valid and binding obligation of the Delaware Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, 

47

moratorium, insolvency and other similar laws affecting creditors' rights generally and to general principles of equity and the discretion of the court (regardless of whether considered in a proceeding in equity or at law);

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

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

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

(f)     if the Delaware Trustee is a natural person, he or she is a resident of the
State of Delaware.

ARTICLE XIII 

MISCELLANEOUS

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

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

Foster Capital Trust I
c/o Foster Bankshares, Inc.
5225 N. Kedzie Avenue
Chicago, Illinois 60625
Attention: Kurt C. Felde
Telecopy: (773) 588-2370
Telephone: (773) 279-4950

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

Christiana Bank & Trust Company
1314 King Street
Wilmington, Delaware  19801
Attn: Louis Geibel, Vice President
Telecopy: 302-888-7424
Telephone: 302-421-9015

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

LaSalle Bank National Association
135 S. LaSalle Street, Suite 1511
Chicago, Illinois 60603
Attention: CDO Trust Services Group
Foster Capital Trust I
Telecopy: 312-904-0283
Telephone: 312-904-0524

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

Foster Bankshares, Inc.
5225 N. Kedzie Avenue
Chicago, Illinois 60625
Attention: Kurt C. Felde
Telecopy: (773) 588-2370
Telephone: (773) 279-4950

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

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

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

SECTION 13.3.  Submission to Jurisdiction.

(a)       Each of the parties hereto agrees that any suit, action or proceeding arising out of or based upon this Declaration, or the transactions contemplated hereby, may be instituted in any of the courts of the State of New York located in the Borough of Manhattan, City and State of New York, and further agrees to submit to the jurisdiction of Delaware, and to any actions that are instituted in state or Federal court in Wilmington, Delaware and any competent court in the place of its corporate domicile in respect of actions brought against it as a defendant. In addition, each such party irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of such suit, action or 

proceeding brought in any such court and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum and irrevocably waives any right to which it may be entitled on account of its place of corporate domicile. Each such party hereby irrevocably waives any and all right to trial by jury in any legal proceeding arising out of or relating to this Declaration or the transactions contemplated hereby. Each such party agrees that final judgment in any proceedings brought in such a court shall be conclusive and binding upon it and may be enforced in any court to the jurisdiction of which it is subject by a suit upon such judgment.

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

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

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

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

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

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

SECTION 13.8.  Counterparts.  This Declaration may contain more than one counterpart of the signature page and this Declaration may be executed by the affixing of the signature of each of the Trustees and Administrators to any of such counterpart signature pages. All of such counterpart signature pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a single signature page.

50

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

	
				
	 
	CHRISTIANA BANK & TRUST  COMPANY,
as Delaware  Trustee

	 
	

	 
	 
	 
	 

	 
	LASALLE  BANK NATIONAL
ASSOCIATION,
as Institutional Trustee

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	Foster Bankshares, Inc.,
as Sponsor

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Administrator

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Administrator

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

	
				
	 
	CHRISTIANA BANK & TRUST  COMPANY,
as Delaware  Trustee

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	LASALLE  BANK NATIONAL
ASSOCIATION,
as Institutional Trustee

	 
	 
	 
	 

	 
	

	 
	 
	 
	 

	 
	Foster Bankshares, Inc.,
as Sponsor

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Administrator

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Administrator

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

	
				
	 
	CHRISTIANA BANK & TRUST  COMPANY,
as Delaware  Trustee

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	LASALLE  BANK NATIONAL
ASSOCIATION,
as Institutional Trustee

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	Foster Bankshares, Inc.,
as Sponsor

	 
	

ANNEX I

TERMS OF CAPITAL SECURITIES AND COMMON SECURITIES

Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of July  8,  2005  (as  amended  from  time  to  time,  the  "Declaration"),  the  designation,  rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities and the Common Securities are set out below (each capitalized term used but not defined herein has the meaning set forth in the Declaration):

1.     Designation and Number.

(a)       Capital  Securities.  15,000  Capital  Securities  of  Foster  Capital  Trust  I  (the "Trust"), with an aggregate stated liquidation amount with respect to the assets of the Trust of Fifteen Million Dollars ($15,000,000) and a stated liquidation amount with respect to the assets of  the  Trust  of  $1,000  per  Capital  Security,  are  hereby  designated  for  the  purposes  of identification only as the "TP Securities" (the "Capital Securities"). The Capital Security Certificates evidencing the Capital Securities shall be substantially in the form of Exhibit A-1 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice or to conform to the rules of any stock exchange on which the Capital Securities are listed, if any.

(b)       Common  Securities.    464  Common  Securities  of  the  Trust  (the  "Common Securities") will be evidenced by Common Security Certificates substantially in the form of Exhibit A-2 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice. In the absence of an Event of Default, the Common Securities will have an aggregate stated liquidation amount with respect to the assets of the Trust of Four Hundred Sixty Four Thousand Dollars ($464,000) and a stated liquidation amount with respect to the assets ofthe Trust of$1,000  per Common Security.

2.     Distributions.

(a)       Distributions payable on each Security will be payable at a variable per annum rate of interest, reset quarterly, equal to LIBOR, as determined on the LIBOR Determination Date for such Distribution Payment Period, plus 1.70% (the "Coupon Rate") of the stated liquidation amount of $1,000 per Security (provided, however, that the Coupon Rate for any Distribution Payment Period may not exceed the highest rate permitted by New York law, as the same may be modified by United States law of general applicability), such Coupon Rate being the rate of interest payable on the Debentures to be held by the Institutional Trustee. Except as set forth below in respect of an Extension Period, Distributions in arrears for more than one quarterly period will bear interest thereon compounded quarterly at the applicable Coupon Rate for each such quarterly period (to the extent permitted by applicable law). The term "Distributions" as used herein includes cash distributions, any such compounded distributions and any Additional Interest payable on the Debentures unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the Institutional  Trustee and to the extent the Institutional  Trustee has funds legally available in the Property  Account  therefor. The amount  of Distributions  payable for any Distribution  Payment Period will be computed for any full quarterly Distribution Payment Period on the basis of a 360- day year and the actual  number  of days elapsed  in the relevant  Distribution  period; provided, however,  that upon  the occurrence  of a Special  Event  redemption  pursuant  to paragraph  4(a) below the amounts  payable  pursuant  to this Declaration  shall be calculated  as set forth  in the definition of Special Redemption Price.

(b)     LIBOR  shall  be  determined  by the  Calculation  Agent  in  accordance  with  the following provisions:

(1)       On the second LIBOR Business Day (provided, that on such day commercial banks are open for business (including dealings in foreign currency deposits) in London (a "LIBOR Banking Day"), and otherwise the next preceding LIBOR Business Day that is also a LIBOR Banking Day) prior to March 15, June
15,  September  15  and  December  15  (or,  with  respect  to  the  first  Distribution
Payment  Period,  on  July  6,  2005),  (each  such  day,  a  "LIBOR  Determination Date") for such Distribution  Payment Period), the Calculation  Agent shall obtain the  rate  for  three-month   U.S.  Dollar  deposits  in  Europe,   which  appears  on Telerate  Page  3750  (as  defined  in  the  International   Swaps  and  Derivatives Association,  Inc. 2000 Interest Rate and Currency Exchange Definitions) or such other page as may replace  such Telerate  Page 3750  on the Moneyline  Telerate, Inc. service (or such other service or services as may be nominated by the British Banker's  Association  as  the  information  vendor  for  the  purpose  of  displaying London interbank offered rates for U.S. dollar deposits), as of 11:00 a.m. (London time)  on  such  LIBOR  Determination  Date,  and  the  rate  so  obtained  shall  be LIBOR for such Distribution Payment Period.  "LIBOR Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banking institutions in The City of New York or Wilmington, Delaware are authorized or obligated  by law or executive  order to be closed. If such  rate is superseded  on Telerate  Page 3750 by a corrected rate before 12:00 noon (London time) on the same LIBOR Determination  Date, the corrected rate as so substituted  will be the applicable LIBOR for that Distribution Payment Period.

(2)       If, on any LIBOR Determination  Date, such rate does not appear on Telerate Page 3750 or such other page as may replace such Telerate Page 3750 on the Moneyline  Telerate, Inc. service (or such other service or services as may be nominated  by the British Banker's  Association  as the information  vendor for the purpose of displaying London interbank offered rates for U.S. dollar deposits), the   Calculation   Agent   shall  determine   the  arithmetic   mean   of  the  offered quotations  of the  Reference  Banks  (as  defined  below)  to  leading  banks  in the London Interbank market for three-month U.S. Dollar deposits in Europe (in an amount  determined   by  the  Calculation   Agent)  by  reference  to  requests  for quotations as of approximately  11:00 a.m. (London time) on the LIBOR Determination  Date made by the Calculation Agent to the Reference Banks. If, on any LIBOR Determination  Date, at least two ofthe Reference Banks provide such quotations, LIBOR shall equal the arithmetic mean of such quotations. If, on any LIBOR  Determination  Date, only one or none  of the Reference  Banks  provide such a quotation, LIBOR shall be deemed to be the arithmetic mean of the offered quotations that at least two leading banks in the City ofNew York (as selected by the Calculation Agent) are quoting on the relevant LIBOR Determination Date for three-month  U.S. Dollar deposits in Europe at approximately  11:00 a.m. (London time)  (in  an  amount  determined  by  the  Calculation   Agent).  As  used  herein, "Reference  Banks"  means  four  major  banks  in  the  London  Interbank  market selected by the Calculation Agent.

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

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

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

(e)       Distributions  on the Securities  will be cumulative,  will accrue  from the date of original issuance, and will be payable, subject to extension of Distribution payment periods as described herein, quarterly in arrears on March 15, June 15, September  15 and December 15 of each year, commencing  September  15, 2005 (each, a "Distribution  Payment  Date"). Subject to prior submission  of Notice (as defined  in the Indenture),  and so long as no Event  of Default pursuant  to  paragraphs  (c),  (e)  or  (f)  of  Section 501  of  the  Indenture  has  occurred  and  is continuing the Debenture  Issuer has the right under the Indenture to defer payments of interest on the Debentures by extending the interest distribution period for up to 20 consecutive quarterly periods  (each,  an "Extension  Period")  at any time  and from  time  to time on the Debentures, subject to the conditions described below, during which Extension Period no interest shall be due and payable (except any Additional Interest that may be due and payable). During any Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest (such accrued interest and interest thereon referred to herein as "Deferred Interest") will accrue at an annual rate equal to the Coupon Rate in effect for each such Extension  Period, compounded quarterly  from  the date  such  Deferred  Interest  would  have  been  payable  were  it not  for  the Extension Period, to the extent permitted by law. No Extension Period may end on a date other than a Distribution Payment Date.   At the end of any such Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided, however, that no Extension Period may extend beyond the Maturity Date; and provided, further, that, during any such Extension Period, the Debenture Issuer may not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Debenture Issuer's capital stock or (ii) make any payment of principal or premium or interest on or repay, repurchase or redeem any debt securities of the Debenture Issuer that rank pari passu in all respects with or junior in interest to the Debentures or (iii) make any payment under any guarantees of the Debenture Issuer that rank in all respects pari passu with or junior in interest to the Guarantee (other than (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Debenture Issuer (A) in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more  employees,  officers,  directors  or  consultants,  (B)  in  connection   with  a  dividend reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of capital stock ofthe  Debenture Issuer (or securities convertible into or exercisable for such capital stock), as consideration in an acquisition transaction entered into prior to  the applicable Extension Period, (b) as a result of any exchange, reclassification, combination or conversion of any class or series of the Debenture Issuer's capital stock (or any capital stock of a subsidiary of the Debenture Issuer) for any class or series of the Debenture Issuer's capital stock or of any class or series of the Debenture Issuer's indebtedness for any 

class or series of the Debenture Issuer's capital stock, (c) the purchase of fractional interests in shares of the Debenture Issuer's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any stockholder's  rights  plan,  or  the  issuance  of  rights,  stock  or  other  property  under  any stockholder's rights plan, or the redemption or repurchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock), or (f) cash distributions to its shareholders, in an amount not to exceed 40%  of the Debenture Issuer's taxable income (as determined annually on the Debenture Issuer's tax return), to enable such shareholders to pay federal and state income taxes associated with their distributive shares of the Debenture  Issuer's  taxable  income.  Prior  to  the  termination  of  any  Extension  Period,  the Debenture Issuer may further extend such period; provided, that such period together with all such  previous  and  further  consecutive  extensions  thereof  shall  not  exceed  20  consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period and upon the payment of all Deferred Interest, the Debenture Issuer may commence a new Extension Period, subject to the foregoing requirements. No interest or Deferred Interest shall be due and payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of interest that would otherwise have been due and payable during such Extension Period until such installment is paid. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates, or, if such  date  is  not  a  Distribution  Payment  Date,  on  the  immediately  following  Distribution Payment Date, to Holders of the Securities as they appear on the books and records of the Trust on the record date immediately preceding such date. Distributions on the Securities must be paid on the dates payable (after giving effect to any Extension Period) to the extent that the Trust has funds legally available for the payment of such distributions in the Property Account of the Trust. The Trust's funds available for Distribution to the Holders of the Securities will be limited to payments received  from the Debenture  Issuer. The payment of Distributions  out of moneys held by the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

(f)        Distributions  on  the  Securities  will  be payable  to the  Holders  thereof  as  they appear  on  the  books  and  records  of  the Registrar  on  the  relevant  record  dates.  The  relevant record dates shall be selected  by the Administrators,  which dates shall be 15 days before the relevant  Distribution   Payment   Date.  Distributions   payable  on  any  Securities   that  are  not punctually  paid on any Distribution  Payment  Date, as a result of the Debenture  Issuer having failed  to make  a payment  under  the Debentures,  as  the case  may  be, when  due  (taking  into account  any  Extension  Period),  will  cease  to  be  payable  to the  Person  in whose  name  such Securities are registered on the relevant record date, and such defaulted Distribution  will instead be payable to the Person in whose name such Securities are registered on the special record date or other specified date determined  in accordance with the Indenture.   Notwithstanding  anything to the contrary contained  herein, if any Distribution  Payment  Date, other than on the Maturity Date, any Redemption Date or the Special Redemption Date, falls on a day that is not a Business Day, then any Distributions payable will be paid on, and such Distribution Payment Date will be moved to, the next succeeding  Business  Day, and additional  Distributions  will accrue for each day that such payment is delayed as a result thereof.  If the Maturity Date, any Redemption Date or the Special  Redemption  Date falls on a day that is not a Business  Day, then the principal, premium, if any, and/or Distributions  payable on such date will be paid on the next succeeding Business Day, and no additional  Distributions  will accrue in respect of such payment made on such next succeeding Business Day.

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

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

The Sponsor, as the Holder of all of the Common Securities, has the right at any time to, upon receipt of an opinion of nationally recognized  tax counsel that Holders will not recognize any gain or loss for United States  federal income  tax purposes  as a result of the distribution Debentures, dissolve the Trust (including without limitation upon the occurrence of a Tax Event, an Investment Company Event or a Capital Treatment Event), subject to the receipt by the Debenture Issuer of prior approval from any regulatory authority having jurisdiction over the Sponsor that is primarily responsible for regulating the activities of the Sponsor if such approval is then required under applicable capital guidelines or policies of such regulatory authority, and, after satisfaction of liabilities to creditors of the Trust, cause the Debentures to be distributed to the Holders of the Securities on a Pro Rata basis in accordance with the aggregate stated liquidation amount thereof.

The Trust shall dissolve on the first to occur of (i) July 8, 2040, the expiration of the term of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor, the Trust or the Debenture Issuer, (iii) (other than in connection with a merger, consolidation or similar transaction not prohibited by the Indenture, this Declaration or the Guarantee, as the case may be) the filing of a certificate of dissolution or its equivalent with respect to the Sponsor or upon the revocation of the charter of the Sponsor and the expiration of 90 days after the date of revocation without a reinstatement thereof, (iv) the distribution to the Holders of the Securities of the Debentures, upon exercise of the right of the Holder of all of the outstanding Common Securities to dissolve the Trust as described above, (v) the entry of a decree of a judicial dissolution of the Sponsor or the Trust, or (vi) when all of the Securities shall have been called for  redemption and the amounts necessary for redemption thereof shall have been paid to the Holders in accordance with the terms of the Securities. As soon as practicable after the dissolution of the Trust and upon completion of  the  winding up  of  the  Trust, the  Trust shall terminate  upon  the  filing of  a certificate of cancellation with the Secretary of State of the State of Delaware.

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

to creditors of Trust, to the Holders of the Securities on a Pro Rata basis, the Debentures, and such distribution occurs.

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

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

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

4.     Redemption and Distribution.

(a)        The Debentures  will mature on July 8, 2035. The Debentures  may be redeemed by the  Debenture  Issuer,  in  whole  or  in  part,  on  any  March  15,  June  15,  September  15  or December 15 on or after September 15, 2010 at the Redemption Price, upon not less than 30 nor more than 60 days' notice to Holders of such Debentures.  In addition, upon the occurrence  and continuation of a Tax Event, an Investment Company Event or a Capital Treatment Event, the Debentures may be redeemed by the Debenture Issuer in whole or in part, at any time within 90 days  following  the  occurrence  of  such  Tax  Event,  Investment  Company  Event  or  Capital Treatment   Event,  as  the   case  may  be  (the   "Special   Redemption   Date"),   at  the  Special Redemption  Price,  upon  not  less  than  30  nor  more  than  60  days'  notice  to  Holders  of  the Debentures so long as such Tax Event, Investment Company Event or Capital Treatment Event, as the case may be, is continuing.  In each case, the right of the Debenture  Issuer to redeem the Debentures is subject to the Debenture Issuer having received prior approval from any regulatory authority having jurisdiction  over the Debenture Issuer, if such approval is then required under applicable capital guidelines or policies of such regulatory authority.

"Tax Event" means the receipt by the Debenture  Issuer and the Trust of an opinion  of counsel experienced in such matters to the effect that, as a result of any amendment to or change (including any announced  prospective  change) in the laws or any regulations  thereunder  of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative  pronouncement  (including  any private letter ruling, technical  advice memorandum,  regulatory  procedure,  notice or announcement)  (an "Administrative  Action")  or judicial decision  interpreting  or applying  such laws or regulations,  regardless  of whether such Administrative  Action  or  judicial  decision  is  issued  to  or  in  connection   with  a  proceeding involving  the  Debenture  Issuer  or the  Trust  and  whether  or  not  subject  to review  or appeal, which   amendment,   clarification,   

change,   Administrative    Action   or   decision   is   enacted, promulgated  or  announced,  in  each  case  on  or  after  the  date  of  original  issuance  of  the Debentures, there is more than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such opinion, subject to United States federal income tax with respect to income received  or  accrued  on  the  Debentures;  (ii)  interest  payable  by  the  Debenture  Issuer  on  the Debentures is not, or within 90 days of the date of such opinion, will not be, deductible by the Debenture Issuer, in whole or in part, for United States federal income tax purposes; or (iii) the Trust is, or will be within 90 days of the date of such opinion, subject to more than a de minimis amount of other taxes (including  withholding  taxes), duties, assessments  or other governmental charges.

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

"Capital Treatment Event" means, if the Debenture Issuer is organized and existing under the laws of the United States or any state thereof or the District of Columbia, the receipt by the Debenture  Issuer  and the Trust  of an Opinion  of Counsel  experienced  in such  matters  to the effect that, as a result of (a) any amendment to, or change in, the laws, rules or regulations of the United States or any political subdivision  thereof or therein, or any rules, guidelines or policies of   any  applicable   regulatory   authority   for   the  Debenture   Issuer   or   (b)   any   official   or administrative  pronouncement  or action or decision interpreting  or applying  such laws, rules or regulations, which amendment or change is effective or which pronouncement, action or decision is announced on or after the date of original issuance of the Debentures, there is more than an insubstantial risk that, within 90 days of the receipt of such opinion, the aggregate Liquidation Amount of the Capital Securities  will not be eligible to be treated  by the Debenture  Issuer as "Tier 1 Capital" (or the then equivalent thereof) for purposes of the capital adequacy guidelines of the Federal  Reserve  (or  any  successor  regulatory  authority  with  jurisdiction  over  bank  or financial holding companies),  as then in effect and applicable to the Debenture  Issuer (or if the Debenture Issuer is not a bank holding company, such guidelines applied to the Debenture Issuer as if the Debenture Issuer were subject to such guidelines); provided, however, that the inability of the Debenture  Issuer to treat all or any portion  of the aggregate  Liquidation  Amount of the Capital Securities as Tier 1 Capital shall not constitute the basis for a Capital Treatment Event, if such  inability  results  from  the  Debenture  Issuer  having  cumulative  preferred  stock,  minority interests in consolidated subsidiaries, or any other class of security or interest which the Federal Reserve or OTS, as applicable, may now or hereafter accord Tier 1 Capital treatment in excess of the amount which may now or hereafter qualify for treatment as Tier 1 Capital under applicable capital adequacy guidelines; provided further, however, that the distribution  of the Debentures in connection  with the liquidation  of the Trust by the Debenture  Issuer shall  not in and of itself constitute  a Capital Treatment  Event unless such liquidation  shall have occurred  in connection with a Tax Event or an Investment Company Event.

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

"Special Redemption Price" means, with respect to the redemption of any Debentures following  a Special  Event,  an amount  in cash  equal  to 103.525%  of the principal  amount  of Debentures to be redeemed prior to September 15, 2006 and thereafter equal to the percentage of the principal amount of the Debentures that is specified below for the Special Redemption Date plus, in each case, unpaid interest accrued thereon to the Special Redemption Date:

	
		
	Special Redemption 
During the 12-Month Period Beginning
September 15 
	Percentage of Principal Amount

	2006
	103.14%

	2007
	102.355%

	2008
	101.57%

	2009
	100.785%

	2010 and thereafter
	100%

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

"Redemption Price" means 100% of the principal amount of the Debentures being redeemed plus accrued and unpaid interest on such Debentures to the Redemption Date.

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

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

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

(e)     Redemption or Distribution Procedures.

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

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

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

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

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

5.     Voting Rights- Capital Securities.

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

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

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

A waiver of an Indenture Event of Default will constitute a waiver of the corresponding Event of Default hereunder. Any required approval or direction of Holders of the Capital Securities may be given at a separate meeting of Holders of the Capital Securities convened for such purpose, at a meeting of all of the Holders of the Securities in the Trust or pursuant to written consent. The Institutional Trustee will cause a notice of any meeting at which Holders of the Capital Securities are entitled to vote, or of any matter upon which action by written consent of such Holders is to be taken, to be mailed to each Holder of record of the Capital Securities. Each such notice will include a statement setting forth the following information (i) the date of such meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of such matter upon which written consent is sought and (iii) instructions for the delivery of proxies or Trust to redeem and cancel Capital Securities or to distribute the Debentures in accordance with the Declaration and the terms of the Securities.

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

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

6.     Voting Rights - Common Securities.

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

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

(c)       Subject to Section 6.7 of the Declaration and only after each Event of Default (if any) with respect to the Capital Securities has been cured, waived or otherwise eliminated and subject to the requirements 

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

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

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

7.     Amendments to Declaration and Indenture.

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

such amendment or proposal and such amendment or  proposal  shall  not  be  effective  except  with  the  approval  of  a  Majority  in liquidation amount of such class of Securities.

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

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

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

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

9.        Ranking.  The Capital Securities rank pari passu with, and payment thereon shall be made Pro Rata with, the Common Securities except that, where an Event of Default has occurred and is continuing, the rights of Holders of the Common Securities to receive payment of Distributions and payments upon liquidation, redemption and otherwise are subordinated to the rights of the Holders of the Capital Securities with the result that no payment of any Distribution on, or Redemption Price or Special Redemption Price of, any Common Security, and no other payment on account of redemption, liquidation or other acquisition of Common Securities, shall be made unless payment in full in cash of all accumulated and unpaid Distributions on all outstanding Capital Securities for all distribution periods terminating on or prior thereto, or in the case of payment of the Redemption Price or Special Redemption Price the full amount of such Redemption Price or the Special Redemption Price on all outstanding Capital Securities then called for redemption, shall have been made or provided for, and all funds immediately available to the Institutional Trustee shall first be 

applied to the payment in full in cash of all Distributions on, or the Redemption Price or the Special Redemption Price of, the Capital Securities then due and payable.

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

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

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

EXHIBIT A-1

FORM OF CAPITAL SECURITY CERTIFICATE

[FORM OF FACE OF SECURITY]

THIS SECURITY  HAS NOT BEEN REGISTERED  UNDER THE SECURITIES  ACT OF  1933,  AS  AMENDED   (THE  "SECURITIES   ACT"),  OR  ANY  STATE  SECURITIES LAWS OR ANY OTHER  APPLICABLE  SECURITIES  LAWS. NEITHER  THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,  TRANSFERRED,   PLEDGED,  ENCUMBERED   OR  OTHERWISE  DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION  OR UNLESS SUCH TRANSACTION  IS EXEMPT  FROM,  OR  NOT  SUBJECT  TO,  THE  REGISTRATION   REQUIREMENTS OF THE  SECURITIES   ACT.  THE  HOLDER  OF  THIS  SECURITY   BY  ITS  ACCEPTANCE HEREOF  AGREES  TO  OFFER,  SELL  OR  OTHERWISE  TRANSFER  SUCH  SECURITY ONLY  (A) TO THE DEBENTURE  ISSUER  OR THE  TRUST,  (B) PURSUANT  TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THE HOLDER REASONABLY  BELIEVES  IS A "QUALIFIED  INSTITUTIONAL  BUYER"  AS DEFINED IN RULE 144A THAT PURCHASES  FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED  INSTITUTIONAL  BUYER TO WHOM NOTICE  IS GIVEN THAT THE TRANSFER  IS  BEING  MADE  IN  RELIANCE  ON  RULE  144A,  (C)  TO  A  "NON  U.S. PERSON"   IN   AN   "OFFSHORE   TRANSACTION"    PURSUANT    TO   REGULATION  S UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN "ACCREDITED INVESTOR"  WITHIN  THE  MEANING  OF SUBPARAGRAPH (a)  (1), (2),  (3)  OR (7)  OF RULE 501 UNDER THE SECURITIES  ACT THAT IS ACQUIRING  THE SECURITY  FOR ITS OWN  ACCOUNT,  OR FOR  THE ACCOUNT  OF  SUCH  AN  "ACCREDITED INVESTOR,"  FOR  INVESTMENT  PURPOSES  AND  NOT  WITH  A  VIEW  TO,  OR  FOR OFFER  OR  SALE  IN  CONNECTION  WITH,  ANY  DISTRIBUTION   IN  VIOLATION  OF THE SECURITIES  ACT, OR (E) PURSUANT  TO ANOTHER  AVAILABLE  EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF THE SECURITIES  ACT, SUBJECT TO THE DEBENTURE  ISSUER'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE  OR  TRANSFER   PURSUANT   TO   CLAUSES   (D)   OR  (E)  TO  REQUIRE   THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE  WITH THE AMENDED AND RESTATED  DECLARATION  OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE  ISSUER OR THE TRUST. THE HOLDER OF THIS SECURITY  BY ITS ACCEPTANCE  HEREOF  AGREES  THAT  IT WILL COMPLY  WITH THE FOREGOING RESTRICTIONS.

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

THE  HOLDER   OF  THIS   SECURITY   BY  ITS  ACCEPTANCE   HEREOF   ALSO AGREES, REPRESENTS  AND WARRANTS  THAT IT IS NOT AN EMPLOYEE  BENEFIT, INDIVIDUAL  RETIREMENT  ACCOUNT  OR OTHER  PLAN  OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT  INCOME SECURITY ACT OF
1974,  AS  AMENDED  ("ERISA"),  OR  SECTION  4975  OF  THE  INTERNAL  REVENUE
CODE  OF  1986,  AS  AMENDED  (THE  "CODE"),  (EACH  A  "PLAN"),  OR  AN  ENTITY WHOSE  UNDERLYING   ASSETS  INCLUDE  "PLAN  ASSETS"  BY  REASON   OF  ANY PLAN'S INVESTMENT  IN THE ENTITY AND NO PERSON INVESTING  "PLAN ASSETS" OF  ANY  PLAN  MAY  ACQUIRE   OR  

HOLD  THIS  SECURITY   OR  ANY  INTEREST THEREIN,  UNLESS  SUCH  PURCHASER  OR HOLDER  IS  ELIGIBLE  FOR  THE EXEMPTION  RELIEF  AVAILABLE  UNDER  U.S.  DEPARTMENT   OF  LABOR PROHIBITED  TRANSACTION  CLASS  EXEMPTION  96-23,  95-60,  91-38,  90-1  OR 84-14
OR ANOTHER APPLICABLE EXEMPTION  OR ITS PURCHASE  AND HOLDING OF THIS
SECURITY  IS NOT  PROHIBITED  BY SECTION  406  OF ERISA  OR  SECTION  4975  OF THE CODE  WITH RESPECT  TO SUCH  PURCHASE  OR HOLDING.  ANY  PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED  BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN  WITHIN THE MEANING  OF SECTJON 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE  OR  OTHER  PERSON  ACTING  ON  BEHALF  OF  AN  EMPLOYEE  BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON  OR ENTITY  USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE  WILL NOT RESULT IN A PROHIBITED  TRANSACTION  UNDER SECTION 406   OF   ERISA   OR   SECTION   4975   OF  THE   CODE   FOR   WHICH   THERE   IS  NO APPLICABLE STATUTORY OR ADMINISTRATIVE  EXEMPTION.

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

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

Certificate Number    [P-001]     Number of Capital Securities: 15,000

Certificate Evidencing Capital Securities of
Foster Capital Trust I TP Securities
(liquidation amount $1,000 per Capital Security)

Foster Capital Trust I, a statutory trust created under the laws of the State of Delaware (the "Trust"), hereby certifies that Sigler & Co. (the "Holder"), is the registered owner of 15,000 capital securities of the Trust representing undivided beneficial interests in the assets of the Trust,  designated  the  TP  Securities  (liquidation  amount  $1,000  per  Capital  Security)  (the "Capital Securities"). Subject to the Declaration (as defined below), the Capital Securities are transferable on the books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this Certificate duly endorsed and in proper form for transfer. The Capital Securities represented hereby are issued pursuant to, and the designation, rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities shall in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the Trust, dated as of July 8, 2005, among Paul B. Kim and Kurt C. Felde, as Administrators, Christiana Bank & Trust Company, as Delaware Trustee, LaSalle Bank National Association, as Institutional Trustee, Foster Bankshares, Inc., as Sponsor, and the holders from time to time of undivided beneficial interests in the assets of the Trust, including the designation of the terms of the Capital Securities as set forth in Annex I to the Declaration, as the same may be amended from time to time (the "Declaration"). Capitalized terms used herein but not defined shall have the meaning given  them  in  the  Declaration. The Holder  is entitled  to  the  benefits of  the Guarantee to the extent provided therein. The Sponsor will provide a copy of the Declaration, the Guarantee, and the Indenture to the Holder without charge upon written request to the Sponsor at its principal place of business.

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

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

This Capital Security is governed by, and shall be construed in accordance with, the laws of the State of Delaware, without regard to principles of conflict of laws.

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

	
				
	 
	Foster Capital Trust I

	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	Administrator

	 
	 
	 
	 

	 
	Dated:
	 

CERTIFICATE OF AUTHENTICATION

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

	
				
	 
	LASALLE BANK NATIONAL 
ASSOCIATION, not in its individual capacity 
but solely as Institutional Trustee

	 
	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

	 
	 
	 
	 

	 
	Dated:
	 

[FORM OF REVERSE OF SECURITY]

Distributions payable on each Capital Security will be payable at a variable per annum rate of interest, reset quarterly, equal to LIBOR (as defined in the Declaration) plus 1.70% (the "Coupon Rate") of the stated liquidation amount of $1,000 per Capital Security (provided, however, that the Coupon Rate for any Distribution Payment Period may not exceed the highest rate permitted by New York law,as the same may be modified by United States law of general applicability), such Coupon Rate being the rate of interest payable on the Debentures to be held by the Institutional Trustee. Distributions in arrears for more than one quarterly period will bear interest  thereon  compounded quarterly  at  the  then  applicable  Coupon  Rate  for  each  such quarterly period (to the extent permitted by applicable law). The term "Distributions" as used herein  includes  cash  distributions,  any  such  compounded  distributions  and  any  Additional Interest payable on the Debentures unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the Institutional Trustee and to  the  extent the  Institutional Trustee has funds  legally available  in  the  Property Account therefor. The amount of Distributions payable for any period will be computed for any full quarterly Distribution period on the basis of a 360-day year and the actual number of days elapsed in the relevant Distribution Payment Period.

Except as otherwise described below, Distributions on the Capital Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2005 (each, a "Distribution Payment Date"). Upon submission of Notice, and so long as no Event of Default pursuant to paragraphs (c), (e) or (f)  of Section 501 of the Indenture has occurred and is  continuing the Debenture Issuer has the right under the  Indenture to defer payments of interest on the Debentures by extending the interest distribution period for up to 20 consecutive quarterly periods (each, an "Extension Period") at any time and from time to time on the Debentures, subject to the conditions described below, during which Extension Period no interest shall be due and payable (except any Additional Interest that may be due and payable). During any Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest· (such accrued interest and interest thereon referred to herein as "Deferred Interest") will accrue at  an  annual rate equal to  the  Coupon  Rate  in  effect for  each  such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by law. No Extension Period may end on a date other than a Distribution Payment Date. At the end of any such Extension Period, the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the Debentures; provided, however, that no Extension Period may extend beyond the Maturity Date. Prior to the termination of any Extension Period, the Debenture Issuer may further extend such period; provided, that such  period together  with  all  such  previous and  further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend  beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Upon the termination  of  any  Extension  Period  and  upon  the  payment  of  all  Deferred  Interest,  the Debenture Issuer may commence a new Extension Period, subject to the foregoing requirements. No interest or Deferred Interest (except any Additional Amounts that may be due and payable) shall be due and payable during an Extension Period, except at the end thereof, but Deferred Interest shall accrue upon each installment of interest that would otherwise have been due and payable during such Extension Period until such installment is paid. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates to Holders of the Securities as they appear on the books and records of the Trust on the record date immediately preceding such date. Distributions on the Securities must be paid on the dates payable (after giving effect to any Extension Period) to the extent that the Trust has funds legally available for the payment of such distributions in the 

Property Account of the Trust. The Trust’s funds available for Distribution to the Holders of the Securities will be limited to payments received from the Debenture Issuer. The payment of Distributions out of moneys held by the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

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

ASSIGNMENT

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

	
	
	 

	 

	 

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

	
	
	 

	 

	 

(Insert address and zip code of assignee),

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

	
					
	 
	 
	Date:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Signature:
	 
	 

	 
	 
	 
	 
	 

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

	 
	 
	 
	 
	 

	 
	 
	Signature Guarantee: 1
	 
	 

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

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

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

EXCEPT AS SET FORTH IN SECTION 8.l(b)  OF THE DECLARATION (AS DEFINED BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED.

Certificate Number     [C-001]     Number of Common Securities:  464

Certificate Evidencing Common Securities of
Foster Capital Trust I

Foster Capital Trust I, a statutory trust created under the laws of the State of Delaware (the "Trust"), hereby certifies that Foster Bankshares, Inc. (the "Holder") is the registered owner of 464 common securities of the Trust representing undivided beneficial interests in the assets of the Trust (liquidation amount $1,000 per Common Security) (the "Common Securities"). The Common  Securities  represented  hereby  are  issued  pursuant  to,  and  the  designation,  rights, privileges,  restrictions,  preferences  and other  terms and provisions  of the Common  Securities shall in all respects  be subject  to, the provisions  of the Amended  and Restated  Declaration  of Trust  of  the  Trust,  dated  as  of  July  8,  2005,  among  Paul  B.  Kim  and  Kurt  C.  Felde,  as Administrators, Christiana Bank & Trust Company, as Delaware Trustee, LaSalle Bank National Association, as Institutional Trustee, the Holder, as Sponsor, and the holders from time to time of undivided beneficial interests in the assets of the Trust, including the designation of the terms of the Common Securities as set forth in Annex I to the Declaration, as the same may be amended from time to time (the "Declaration").  Capitalized terms used herein but not defined shall have the meaning given them in the Declaration. The Sponsor will provide a copy of the Declaration and  the  Indenture  to  the  Holder  without  charge  upon  written  request  to  the  Sponsor  at  its principal place of business.

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

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

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

This Common  Security  is governed by, and shall be construed  in accordance  with, the laws of the State of Delaware, without regard to principles of conflict of laws.

IN WITNESS  WHEREOF, the Trust has executed this certificate July 8, 2005.

	
				
	 
	Foster Capital Trust I

	 
	 
	 

	 
	By:
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	Administrator

	 
	 
	 
	 

	 
	Dated:
	 

[FORM OF REVERSE OF SECURITY]

Distributions payable on each Common Security will be identical in amount to the Distributions  payable on each Capital Security, which is at a variable per annum rate of interest, reset quarterly, equal to LIBOR (as defined in the Declaration)  plus 1.70% (the "Coupon Rate") of the stated  liquidation  amount  of  $1,000  per  Capital  Security  (provided,  however,  that  the Coupon Rate for any Distribution  Payment Period may not exceed the highest rate permitted by New York law, as the same may be modified by United States law of general applicability), such Coupon Rate being the rate of interest payable on the Debentures  to be held by the Institutional Trustee. Distributions in arrears for more than one quarterly period will bear interest thereon compounded quarterly at the then applicable Coupon Rate for each such quarterly period (to the extent permitted by applicable law). The term "Distributions" as used herein includes cash distributions, any such compounded distributions and any Additional Interest payable on the Debentures  unless otherwise  stated. A Distribution  is payable only to the extent that payments are made in respect of the Debentures held by the Institutional Trustee and to the extent the Institutional Trustee has funds legally available in the Property Account therefor. The amount of Distributions  payable for any period will be computed for any full quarterly Distribution  period on the basis of a 360-day year and the actual number of days elapsed in the relevant Distribution Payment Period.

Except as otherwise described below, Distributions on the Common Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2005 (each, a "Distribution  Payment Date"). Upon submission  of Notice, and so long as no Event  of  Default  pursuant  to  paragraphs  (c),  (e)  or  (f)  of  Section 501  of  the  Indenture  has occurred  and  is  continuing  the  Debenture  Issuer  has  the  right  under  the  Indenture  to  defer payments of interest on the Debentures  by extending the interest distribution  period for up to 20 consecutive quarterly periods (each, an "Extension Period") at any time and from time to time on the Debentures,  subject  to the conditions  described  below, during  which  Extension  Period  no interest shall be due and payable (except any Additional Interest that may be due and payable). During any Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued interest (such accrued interest and interest thereon referred to herein as "Deferred Interest")  will  accrue  at  an  annual  rate  equal  to  the  Coupon  Rate  in  effect  for  each  such Extension Period, compounded  quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by law. No Extension Period may end on a date other than a Distribution  Payment Date. At the end of any such Extension Period,  the  Debenture  Issuer  shall  pay  all  Deferred  Interest  then  accrued  and  unpaid  on  the Debentures; provided, however, that no Extension Period may extend beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption Date. Prior to the termination of any Extension  Period, the Debenture  Issuer  may further extend  such period, provided,  that such period together with all such previous and further consecutive  extensions thereof shall not exceed  20  consecutive  quarterly  periods,  or  extend  beyond  the  Maturity  Date.  Upon  the termination  of  any  Extension   Period  and  upon  the  payment  of  all  Deferred  Interest,  the Debenture Issuer may commence a new Extension Period, subject to the foregoing requirements. No interest or Deferred  Interest (except  any Additional  Interest that may be due and payable) shall be due and payable during  an Extension  Period, except at the end thereof,  but Deferred Interest shall accrue upon each installment  of interest that would otherwise  have been due and payable during such Extension Period until such installment is paid. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates to Holders of the Securities as they appear on the books and records of the Trust on the record date immediately preceding such date.

Distributions on the Securities must be paid on the dates payable (after giving effect to any Extension Period) to the extent that the Trust has funds legally available for the payment of such distributions in the Property Account of the Trust. The Trust's funds legally available for Distribution to the Holders of the 

Securities will be limited to payments received from the Debenture Issuer. The payment of Distributions out of moneys held by the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

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

ASSIGNMENT

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

	
	
	 

	 

	 

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

	
	
	 

	 

	 

(Insert address and zip code of assignee),

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

	
					
	 
	 
	Date:
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Signature:
	 
	 

	 
	 
	 
	 
	 

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

	 
	 
	 
	 
	 

	 
	 
	Signature Guarantee: 1
	 
	 

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

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