Document:

Exhibit 4.1

                                 TRUST AGREEMENT

                  TRUST AGREEMENT, between MS Structured Asset Corp. (the
"Depositor") and LaSalle Bank National Association (the "Trustee"), made as of
the date set forth in Schedule I attached hereto, which Schedule together with
Schedules II and III attached hereto, are made a part hereof and are hereinafter
referred to collectively as the "Terms Schedule". The terms of the Standard
Terms for Trust Agreements, dated July 7, 1999 (the "Standard Terms") are,
except to the extent otherwise expressly stated, hereby incorporated by
reference herein in their entirety with the same force and effect as though set
forth herein. Capitalized terms used herein and not defined shall have the
meanings defined in the Standard Terms. References to "herein", "hereunder",
"this Trust Agreement" and the like shall include the Terms Schedule attached
hereto and the Standard Terms so incorporated by reference.

                  WHEREAS, the Depositor and the Trustee desire to establish the
Trust identified in Schedule I attached hereto (the "Trust") for the primary
purposes of (i) holding the Securities, (ii) entering into any Swap Agreement
with the Swap Counterparty and (iii) issuing the Units;

                  WHEREAS, the Depositor desires that the respective beneficial
interests in the Trust be divided into transferable fractional shares, such
shares to be represented by the Units;

                  WHEREAS, the Depositor desires to appoint the Trustee as
trustee of the Trust and the Trustee desires to accept such appointment;

                  WHEREAS, the Depositor shall transfer, convey and assign to
the Trust without recourse, and the Trust shall acquire, all of the Depositor's
right, title and interest in and under the Securities and other property
identified in Schedule II to the Trust Agreement (the "Trust Property"); and

                  WHEREAS, the Trust agrees to acquire the Trust Property
specified herein in consideration for Units having an initial Unit Principal
Balance and an initial Notional Amount, as applicable, identified in Schedule I
attached hereto, subject to the terms and conditions specified in the Trust
Agreement;

                  NOW THEREFORE, the Depositor hereby appoints the Trustee as
trustee hereunder and hereby requests the Trustee to receive the Securities from
the Depositor and to issue in accordance with the instructions of the Depositor
Units having the terms specified in Schedule I attached hereto, and the Trustee
accepts such appointment and, for itself and its successors and assigns, hereby
declares that it shall hold all the estate, right, title and interest in any
property contributed to the trust account established hereunder (except property
to be applied to the payment or reimbursement of or by the Trustee for any fees
or expenses which under the terms hereof is to be so applied) in trust for the
benefit of all present and future Holders of the fractional shares of beneficial
interest issued hereunder, namely, the Unitholders, and subject to the terms and
provisions hereof and of the Standard Terms.

<PAGE>

                  IN WITNESS WHEREOF, each of the undersigned has executed this
instrument as of the date set forth in the Terms Schedule attached hereto.

                                            LASALLE BANK NATIONAL ASSOCIATION
                                                as Trustee on behalf of the
                                                Trust identified in Schedule
                                                I hereto, and not in its
                                                individual capacity

                                            By:  /s/ Ann M. Kelly
                                                 ----------------------------
                                                 Name:  Ann M. Kelly
                                                 Title: Assistant Vice President

                                            MS STRUCTURED ASSET CORP.

                                            By:  /s/ John Kehoe
                                                 ----------------------------
                                                 Name:  John Kehoe
                                                 Title: Vice President

Attachments: Terms Schedule (consisting of Schedules I, II and III)

<PAGE>

                                   Schedule I
                           (Terms of Trust and Units)

Trust:

                                            SATURNS Trust No. 2003-3

Date of Trust Agreement:                    February 27, 2003

Depositor                                   On November 8, 2002, the Depositor
                                            changed its name from MSDW
                                            Structured Asset Corp. to MS
                                            Structured Asset Corp.

Trustee:                                    LaSalle Bank National Association.
                                            References to Chase Bank of Texas,
                                            National Association in the Standard
                                            Terms shall be inapplicable.

Units:                                      The Trust will issue two classes of
                                            Units: the Class A Units and the
                                            Class B Units. Only the Class A
                                            Units will be publicly offered.

Initial Unit Principal Balance
of the Class A Units:                       $41,608,000

Initial Notional Amount
of the Class B Units:                       $41,608,000

Issue Price of Units:                       Class A Units: 100%

                                            Class B Units:  As specified by the
                                            Depositor

Number of Units:                            Class A Units:

                                            1,664,320 (Unit Principal Balance of
                                            $25 each)

                                            Class B Units:

                                            416.08 ($100,000 Notional Amount
                                            each)

Minimum Denomination:                       Class A Units:

                                            $25 and $25 increments in excess
                                            thereof. The minimum denomination
                                            specified in Section 5.01(a) of the
                                            Standard Terms shall not apply to
                                            the Class A Units. Each $25 of Unit
                                            Principal Balance is a Unit.

                                            Class B Units:

                                            $100,000 and $1,000 increments in
                                            excess thereof.

Cut-off Date:                               February 27, 2003

Closing Date:                               February 27, 2003

Specified Currency:                         United States dollars

Business Day:                               New York, New York and Chicago,
                                            Illinois

Interest Rate:                              Class A Units:

                                            8.000% per annum on the basis of a
                                            360 day year consisting of twelve 30
                                            day months. During an extension
                                            period with respect to the
                                            securities, interest will continue
                                            to accrue on the Unit Principal
                                            Balance at 8.000% per annum and
                                            interest will accrue on any deferred
                                            interest at 8.000% per annum.

                                            Class B Units:

                                            0.1737% per annum on the basis of a
                                            360 day year consisting of twelve 30
                                            day months. During an extension
                                            period with respect to the
                                            securities, interest will continue
                                            to accrue on the Class B Unit
                                            Notional Amount at 0.1737% per annum
                                            and interest will accrue on any
                                            deferred interest at a rate equal to
                                            8.205% per annum.

                                            The right of the Class A Units to
                                            accrued interest is pari passu with
                                            the right of the Class B Units to
                                            accrued interest from accrued
                                            interest on the securities.

Interest Reset Period:                      Not Applicable

Rating:                                     Class A Units and Class B Units:

                                            Baa3 by Moody's

                                            BBB by S&P

Rating Agencies:                            Moody's and S&P

Scheduled Final Distribution Date:          January 1, 2027. The Units will have
                                            the same final maturity as the
                                            Securities.

Prepayment/Redemption:                      The Trust Property is subject to
                                            redemption in accordance with the
                                            terms of the Securities and as
                                            described in Schedule II and is
                                            subject to call in accordance with
                                            Schedule III. Any such call or
                                            redemption will cause a redemption
                                            of a proportional amount of the
                                            Class A Units and a proportional
                                            reduction in the Notional Amount of
                                            the Class B Units.

                                            If the call rights under the Swap
                                            Agreement are partially exercised or
                                            if there is a partial redemption of
                                            the Securities, (i) the Trustee will
                                            randomly select Class A Units to be
                                            redeemed in full from the proceeds
                                            of such partial exercise of the Swap
                                            Agreement or partial redemption of
                                            the Securities and (ii) the Trustee
                                            will first redeem, up to a Notional
                                            Amount equal to the principal amount
                                            of Securities subject to such
                                            exercised or terminated call, Class
                                            B Units held by any Swap
                                            Counterparty who has exercised its
                                            call rights under the Swap Agreement
                                            or who will be selected for
                                            termination of call rights and then
                                            by random selection. If sufficient
                                            funds are not available to redeem
                                            each such redeemed Unit in full, one
                                            Unit may be fractionally redeemed as
                                            a result of each such partial
                                            redemption or exercise.

Additional Distribution:                    Class A Units:

                                            If any of the Securities are
                                            redeemed by the Security Issuer
                                            prior to February 27, 2008, each of
                                            the Class A Units being redeemed in
                                            connection with such redemption of
                                            Securities or related exercise of
                                            the call rights under the Swap
                                            Agreement shall receive a pro rata
                                            distribution from the proceeds of
                                            such redemption or exercise in
                                            respect of principal, price or
                                            premium with respect to the
                                            Securities in excess of the
                                            corresponding Unit Principal Balance
                                            of the Class A Units to be redeemed,
                                            up to a maximum of $2.50 per Class A
                                            Unit being redeemed.

                                            If the Security Issuer gives notice
                                            of a self-tender as to Securities
                                            held by the Trust and a Swap
                                            Counterparty exercises its call
                                            rights under any Swap Agreement in
                                            connection with such self-tender
                                            prior to February 27, 2008, each
                                            redeemed Class A Unitholder shall
                                            receive an additional distribution
                                            of $1.50 per Class A Unit from the
                                            proceeds of such exercise in respect
                                            of principal, price or premium with
                                            respect to the Securities in excess
                                            of the corresponding Unit Principal
                                            Balance of the Class A Units to be
                                            redeemed.

                                            Class B Units:

                                            If the Securities are redeemed by
                                            the Security Issuer or if the Swap
                                            Counterparty exercises its call
                                            rights under the Swap Agreement,
                                            then the Class B Units designated
                                            for a reduction in Notional Amount
                                            in connection with such redemption
                                            or exercise shall receive (i) an
                                            amount up to the Class B Present
                                            Value Amount as of the date of such
                                            reduction in Notional Amount as an
                                            additional distribution from the
                                            proceeds of such redemption
                                            remaining after required
                                            distributions to the Class A Units
                                            or (ii) any Class B Unit Payment
                                            Obligation as payable under the Swap
                                            Agreement in connection with such
                                            exercise, as applicable. In no event
                                            will amounts payable on the Class B
                                            Units under this provision exceed
                                            the Class B Present Value Amount.

                                            "Class B Present Value Amount"
                                            means, with respect to a date, an
                                            amount equal to the present value of
                                            the Future Class B Unit Interest for
                                            such date in respect of the
                                            corresponding portion of the
                                            Notional Amount of the Class B Units
                                            being reduced discounted at a rate
                                            of 8.205% per annum on the basis of
                                            a 360 day year consisting of twelve
                                            30 day months.

                                            "Future Class B Unit Interest" means
                                            with respect to any date of
                                            reduction in the Notional Amount of
                                            the Class B Units resulting from a
                                            redemption of the Securities or
                                            exercise of call rights under the
                                            Swap Agreement, the interest on the
                                            corresponding portion of the
                                            Notional Amount of the Class B
                                            Units, other than interest paid or
                                            accrued through such date, that
                                            would accrue at the rate and in the
                                            manner specified hereunder and would
                                            be payable at the times specified
                                            hereunder on such corresponding
                                            portion of the Notional Amount of
                                            the Class B Units to the Scheduled
                                            Final Distribution Date had such
                                            reduction of the Notional Amount of
                                            the Class B Units not occurred.

Corporate Trust Office:                     The definition of "Corporate Trust
                                            Office" in the Standard Terms shall
                                            not apply.

                                            The Corporate Trust Office shall be
                                            the Trustee's Asset-Backed
                                            Securities Trust Services Group
                                            having an office at 135 S. LaSalle
                                            Street, Suite 1625, Chicago,
                                            Illinois 60603 or such other
                                            addresses as the Trustee may
                                            designate from time to time by
                                            notice to the Unitholders, the
                                            Depositor, each Swap Counterparty
                                            and the Guarantor.

Swap Agreement:                             The ISDA Master Agreement
                                            referred to in Schedule III and any
                                            assignment thereof. In addition, in
                                            connection with an additional
                                            issuance of Units, any additional
                                            Swap Agreement entered into in
                                            connection therewith.

Swap Counterparty:                          Party A to the Swap Agreement
                                            referred to in Schedule III or any
                                            assignee thereof. In addition, in
                                            connection with an additional
                                            issuance of Units, Party A to any
                                            additional Swap Agreement or any
                                            assignee thereof.

                                            In the event of a partial redemption
                                            or self-tender for the Securities:

                                            (i) in the case of a partial
                                            redemption, to the extent options
                                            corresponding to more Securities
                                            than are subject to such partial
                                            redemption are exercised, a number
                                            of options exercised by each Swap
                                            Counterparty shall be deemed
                                            rescinded (and each Swap
                                            Counterparty shall be entitled to
                                            exercise such rescinded options in
                                            the future) such that (a) the total
                                            amount of options exercised
                                            corresponds to the number of
                                            Securities redeemed and (b) each
                                            Swap Counterparty's exercise is
                                            reduced proportionately to the
                                            number of options such Swap
                                            Counterparty initially exercised.

                                            (ii) in the case of a self-tender,
                                            the Trustee shall tender to the
                                            Security Issuer an amount of the
                                            Securities equal to the total number
                                            of options exercised, and shall
                                            apply the proceeds of such tender in
                                            cash settlement of such options as
                                            provided in the Swap Agreement;
                                            provided, however, that to the
                                            extent any amount of Securities
                                            tendered is not accepted by the
                                            Security Issuer and paid for in
                                            accordance with the terms of the
                                            tender offer, such options relating
                                            to the securities so tendered and
                                            not accepted shall be deemed
                                            rescinded and no settlement thereof
                                            shall be deemed to have occurred,
                                            with the number of such rescinded
                                            options to be allocated among the
                                            Swap Counterparties in proportion to
                                            the number of options initially
                                            exercised (and each Swap
                                            Counterparty shall be entitled to
                                            exercise such rescinded options in
                                            the future).

Swap Termination Payment:                   With respect to each $1,000 face
                                            amount of Securities and each
                                            corresponding option under the Swap
                                            Agreement, an amount equal to the
                                            excess (if any) of the sale proceeds
                                            or redemption proceeds of the
                                            Securities, as applicable, reduced
                                            by (x) accrued interest on the
                                            Securities, (y) the $1,000 of Unit
                                            Principal Balance of the Class A
                                            Units and the Class B Present Value
                                            Amount with respect to $1,000 of the
                                            Notional Amount of Class B Units to
                                            be redeemed in relation to such sale
                                            or redemption and (z) any additional
                                            distribution on the Class A Units to
                                            be redeemed in relation to such sale
                                            or distribution.

                                            In connection with a partial
                                            redemption, such Swap Termination
                                            Payment shall be allocated among
                                            multiple Swap Counterparties in
                                            proportion to the number of options
                                            held by each Swap Counterparty
                                            (after giving effect to any exercise
                                            of options in connection with such
                                            partial redemption as set forth
                                            above under "Swap Counterparty").

Guaranty:                                   Morgan Stanley (formerly known as
                                            Morgan Stanley Dean Witter & Co.,
                                            the "Guarantor") shall guarantee the
                                            obligations of Morgan Stanley & Co.
                                            International Limited ("MSIL") for
                                            so long as MSIL is Party A to any
                                            Swap Agreement with the Trust.

Swap Notional Amount:                       The notional amount specified in
                                            Schedule III.

Swap Payment Date:                          Not Applicable

Swap Rate:                                  Not Applicable

Additional Swap Agreements:                 In connection with an additional
                                            issuance of Units, the Depositor may
                                            arrange for the Trust to enter into
                                            an additional Swap Agreement with
                                            identical terms to those of the Swap
                                            Agreement entered into as of the
                                            Closing Date, except that such Swap
                                            Agreement may have a different Swap
                                            Counterparty, number of options, and
                                            premium amount than the Swap
                                            Agreement entered into on the
                                            Closing Date. The Rating Agency
                                            Condition must be satisfied prior to
                                            the effectiveness of such additional
                                            Swap Agreement. Each Swap
                                            Counterparty must consent to any
                                            additional issuance.

Distribution Date:                          Each January 1 and July 1, or the
                                            next succeeding Business Day if such
                                            day is not a Business Day,
                                            commencing July 1, 2003.

                                            If any payment with respect to the
                                            Securities held by the Trust is not
                                            received by the Trustee by 12 noon
                                            (New York City time) on a
                                            Distribution Date, the corresponding
                                            distribution on the Units will not
                                            occur until the next Business Day
                                            that the Trust is in receipt of
                                            proceeds of such payment prior to 12
                                            noon, with no adjustment to the
                                            amount distributed.

Record Date:                                The record date for each
                                            Distribution Date shall be 15 days
                                            prior to such Distribution Date
                                            regardless of whether such day is a
                                            Business Day.

Form:                                       Global Security

Depositary:                                 DTC

Trustee Fees and Expenses:                  As compensation for and in payment
                                            of trust expenses related to its
                                            services hereunder other than
                                            Extraordinary Trust Expenses, the
                                            Trustee will receive Trustee Fees on
                                            each Distribution Date in the amount
                                            equal to $2,000. The Trustee Fee
                                            shall cease to accrue after
                                            termination of the Trust. The
                                            "Trigger Amount" with respect to
                                            Extraordinary Trust Expenses for the
                                            Trust is $25,000 and the Maximum
                                            Reimbursable Amount is $100,000. The
                                            Trustee Fee will be paid by the
                                            Expense Administrator. Expenses will
                                            be reimbursed by the Expense
                                            Administrator in accordance with the
                                            Expense Administration Agreement.

Expense Administrator:                      The Trustee will act as Expense
                                            Administrator on behalf of the Trust
                                            pursuant to an Expense
                                            Administration Agreement, dated as
                                            of the date of the Trust Agreement
                                            (the "Expense Administration
                                            Agreement"), between the Trustee as
                                            Expense Administrator (the "Expense
                                            Administrator") and the Trust.

                                            The Expense Administrator will
                                            receive a fee equal to $6,512
                                            payable on each Distribution Date.
                                            Amounts in respect of an additional
                                            payment obligation of any Swap
                                            Counterparty in respect of the
                                            Expense Administrator's fee shall
                                            also be considered part of the
                                            Expense Administrator's fee
                                            hereunder and under the Expense
                                            Administration Agreement. The
                                            Expense Administrator's fee is
                                            payable only from available interest
                                            receipts received with respect to
                                            the Securities after application of
                                            such receipts to payment of accrued
                                            interest on the Units. The Amounts
                                            specified in the paragraph are also
                                            referred to as the "Expense
                                            Administrator's Fee".

                                            The Expense Administrator will be
                                            responsible for paying the Trustee
                                            Fee and reimbursing certain other
                                            expenses of the Trust in accordance
                                            with the Expense Administration
                                            Agreement.

Listing:                                    The Depositor has applied to list
                                            the Class A Units on the New York
                                            Stock Exchange.

ERISA Restrictions:                         None of the restrictions in the
                                            Standard Terms relating to the
                                            Employee Retirement Income Security
                                            Act of 1974, as amended, and related
                                            matters shall apply to the Class A
                                            Units.

                                            The restrictions shall apply to the
                                            Class B Units and no ERISA Benefit
                                            Plan may acquire an interest in the
                                            Class B Units.

Alternative ERISA Restrictions:             Not Applicable

Deemed Representations:                     Not Applicable

QIB Restriction:                            Not applicable to the Class A Units.
                                            Applicable to the Class B Units.

Trust Wind-Up Event:                        The Trust Wind-Up Events specified
                                            in Sections 9.01(a), 9.01(c),
                                            9.01(d), 9.01(f) and 9.01(h) shall
                                            not apply. The Trust Wind Events
                                            specified in Sections 9.01(b)
                                            (Security Default), 9.01(e) (Early
                                            Termination Date designated due to
                                            "illegality" or "tax event" under
                                            the Swap Agreement), 9.01(g)
                                            (Disqualified Securities), 9.01(i)
                                            (Excess Expense Event) shall apply.
                                            Pursuant to Section 9.01(j), the
                                            following events also shall
                                            constitute Trust Wind-Up Events: (i)
                                            redemption by the Security Issuer of
                                            all Securities held by the Trust and
                                            (ii) exercise of the call rights
                                            under the Swap Agreement as to all
                                            Securities held by the Trust.

                                            If (i) cash settlement applies under
                                            the Swap Agreement (other than in
                                            connection with a redemption or
                                            self-tender by the Security Issuer
                                            for the Securities), (ii) a Trust
                                            Wind-Up Event has occurred in
                                            connection with the exercise of any
                                            Option under the Swap Agreement and
                                            (iii) the Selling Agent cannot
                                            obtain a bid for the Securities in
                                            excess of the amount specified in
                                            the Swap Agreement, then the
                                            Securities will not be sold, the
                                            Swap Counterparty's exercise of the
                                            call option will be rescinded (and
                                            the Swap Counterparty shall be
                                            entitled to exercise such options in
                                            the future) and any related Trust
                                            Wind-Up Event will be deemed not to
                                            have occurred.

Termination:                                If a Trust Wind-Up Event occurs, any
                                            Securities held by the Trust will be
                                            liquidated (by delivery to the
                                            Security Issuer in the event of a
                                            redemption, pursuant to the terms of
                                            the Swap Agreement in the event of
                                            an exercise of options under the
                                            Swap Agreement or otherwise by sale
                                            thereof).

                                            If the related Trust Wind-Up Event
                                            occurs due to a redemption of the
                                            Securities by the Security Issuer or
                                            an exercise of the call rights under
                                            the Swap Agreement as to all
                                            Securities held by the Trust, (i)
                                            amounts received as accrued interest
                                            on the Securities will be applied
                                            pro rata as to amounts treated as
                                            accrued interest outstanding on the
                                            Class A Units and the Class B Units,
                                            (ii) amounts received as principal
                                            or par on the Securities (including
                                            any portion of the Strike Price (as
                                            defined in the Swap Agreement) equal
                                            to par) will be applied to the Unit
                                            Principal Balance of the Class A
                                            Units up to 100% of the Unit
                                            Principal Balance of each Class A
                                            Unit and (iii) any additional
                                            amounts received in respect of
                                            principal, price or premium (or any
                                            portion of the Strike Price in
                                            excess of the amount in (ii)) will
                                            be in each case applied first to the
                                            Class A Units as an additional
                                            distribution and second to the Class
                                            B Units as an additional
                                            distribution, but only up to the
                                            amount specified under "Additional
                                            Distribution" in this Trust
                                            Agreement. Notwithstanding the
                                            foregoing, any Class B Unit Payment
                                            Obligation made by the Swap
                                            Counterparty under the Swap
                                            Agreement will be distributed to the
                                            Class B Units as set forth under
                                            "Additional Distributions."
                                            Remaining accrued interest will be
                                            applied to the Expense
                                            Administrator's fee. Amounts in
                                            respect of an additional payment
                                            obligation of each Swap Counterparty
                                            in respect of the Expense
                                            Administrator's Fee will be paid to
                                            the Expense Administrator. Remaining
                                            amounts will be allocated to any
                                            applicable additional distribution
                                            on the Class B Units and then to the
                                            Swap Termination Payment.

                                            If the Trust is terminated for any
                                            other reason, the proceeds of
                                            liquidation will be applied to
                                            redeem the Class A Units and the
                                            Class B Units. The Class A Units
                                            will have a claim on the proceeds of
                                            the liquidation equal to their
                                            aggregate Unit Principal Balance
                                            plus accrued interest. The Class B
                                            Units will have a claim on the
                                            proceeds of liquidation equal to
                                            accrued interest plus the Class B
                                            Present Value Amount, in each case
                                            as of such date of termination. If
                                            the proceeds of the liquidation are
                                            less than the combined claim amounts
                                            of the Class A Units and the Class B
                                            Units, the proceeds will be
                                            distributed in proportion to the
                                            claim amounts of the Class A Units
                                            and the Class B Units in full
                                            satisfaction of the claims of the
                                            Units. If the proceeds of
                                            liquidation exceed the claims of the
                                            Class A and B Units and the accrued
                                            interest on the Securities, the
                                            excess will be paid to the Swap
                                            Counterparty as a Swap Termination
                                            Payment under the Swap Agreement,
                                            other than amounts payable to the
                                            Expense Administrator in respect of
                                            the Expense Administrator's Fee.

Self-Tenders by Security Issuer:            The Trust will not participate in
                                            any self-tender by the Security
                                            Issuer for the Securities and the
                                            Trustee will not accept any
                                            instructions to the contrary from
                                            the Unitholders except in connection
                                            with an exercise by a Swap
                                            Counterparty of its option rights.
                                            The Swap Counterparty may exercise
                                            its option rights in connection with
                                            any self-tender in accordance with
                                            the Swap Agreement.

Depositor Optional Exchange:                Depositor Optional Exchange applies
                                            to this Series of Units.

                                            The Depositor may exchange Units for
                                            a pro rata portion of the Trust
                                            Property subject only to the
                                            following conditions: (i) the
                                            exchange is made with respect to
                                            Class A Units with a minimum Unit
                                            Principal Balance of $250,000 and in
                                            $25 integral multiples in excess
                                            thereof and a corresponding Notional
                                            Amount of Class B Units; (ii) such
                                            exchange is to be effected on any
                                            Distribution Date or any date that
                                            is 90 days before or after a
                                            Distribution Date (or the succeeding
                                            Business Day if such date is not a
                                            Business Day) with 45 days notice;
                                            (iii) each Swap Counterparty
                                            consents to the exchange and (iv)
                                            the Expense Administrator consents
                                            to the exchange.

Terms of Retained Interest:                 Notwithstanding any other provision
                                            herein or in the Standard Terms, the
                                            Depositor retains the right to
                                            receive any and all interest that
                                            accrues on the Securities prior to
                                            the Closing Date. The Depositor will
                                            receive such accrued interest on the
                                            first Distribution Date (or
                                            redemption date if earlier) for the
                                            Units and such amount shall be paid
                                            from the interest payment made with
                                            respect to the Securities on the
                                            first Distribution Date.

                                            The amount of the Retained Interest
                                            is $529,031.

                                            If a Security Default occurs on or
                                            prior to the first Distribution Date
                                            and the Depositor does not receive
                                            such Retained Interest amount in
                                            connection with such Distribution
                                            Date, the Depositor will have a
                                            claim for such Retained Interest,
                                            and will share pro rata with holders
                                            of the Units to the extent of such
                                            claim in the proceeds from the
                                            recovery on the Securities.

Call Option Terms:                          Not Applicable.

Security Default:                           The definition of Security Default
                                            in the Standard Terms shall not
                                            apply. A "Security Default" shall
                                            mean one of the following events:
                                            (i) the acceleration of the
                                            outstanding Securities under the
                                            terms of the Securities and/or the
                                            applicable Security Agreement and
                                            failure to pay the accelerated
                                            amount on the acceleration date;
                                            (ii) the failure of the Security
                                            Issuer (or the Security Guarantor on
                                            its behalf or under the Security
                                            Guaranty) to pay an installment of
                                            principal of, or any amount of
                                            interest due on, the Securities
                                            after the due date thereof and after
                                            the expiration of any applicable
                                            grace period; (iii) the initiation
                                            by the Security Issuer or Security
                                            Guarantor of any proceedings seeking
                                            a judgment of insolvency or
                                            bankruptcy or seeking relief under
                                            bankruptcy or insolvency laws or
                                            similar laws affecting creditor's
                                            rights; or (iv) if not otherwise
                                            addressed in (iii), the passage of
                                            thirty (30) calendar days since the
                                            day upon which any person or entity
                                            initiates any proceedings against
                                            the Security Issuer or Security
                                            Guarantor seeking a judgment of
                                            insolvency or bankruptcy or seeking
                                            relief under bankruptcy or
                                            insolvency laws or similar laws
                                            affecting creditor's rights and such
                                            proceeding has not been dismissed
                                            prior to such thirtieth day.

Sale of Securities:                         If the Trust must sell the
                                            Securities it holds, the Trust will
                                            sell the Securities through the
                                            Selling Agent in accordance with
                                            Section 9.03(b) and the following
                                            terms. The Selling Agent must
                                            solicit at least three bids for all
                                            of the Securities held by the Trust.
                                            The Selling Agent must solicit at
                                            least three of such bids from
                                            registered broker-dealers of
                                            national reputation, but additional
                                            bids may be solicited from one or
                                            more financial institutions or other
                                            counterparties with credit
                                            worthiness acceptable to the Selling
                                            Agent in its discretion. The Selling
                                            Agent will, on behalf of the Trust,
                                            sell the Securities at the highest
                                            bid price received. None of the
                                            Selling Agent, its affiliates or its
                                            agents, may bid for the Securities.
                                            With respect to each Swap
                                            Counterparty that is not an
                                            affiliate of the Selling Agent, the
                                            Selling Agent will extend a right of
                                            first refusal to each such Swap
                                            Counterparty to purchase the
                                            Securities at the highest bid
                                            received by the Selling Agent.

                                            If more than one Swap Counterparty
                                            exercises such right of first
                                            refusal, Securities will be sold to
                                            each exercising Swap Counterparty in
                                            proportion to the number of options
                                            held by such Swap Counterparty;
                                            provided, that if only one Swap
                                            Counterparty exercises such right of
                                            first refusal, such Swap
                                            Counterparty shall be entitled to
                                            purchase all of the Securities to be
                                            sold by the Selling Agent.

                                            If cash settlement applies and if a
                                            Swap Counterparty exercises any of
                                            its call rights other than in
                                            connection with a redemption of or a
                                            self-tender for the Securities by
                                            the Security Issuer, a number of
                                            Securities corresponding to the
                                            number of call rights exercised by
                                            the Swap Counterparty (or in the
                                            event of an exercise of call rights
                                            in excess of the amount to be
                                            redeemed, the number of call rights
                                            equal to such excess) will be sold
                                            by the Selling Agent on behalf of
                                            the Trust. If the Selling Agent
                                            cannot obtain a bid for the
                                            Securities in excess of the amount
                                            specified in the Swap Agreement,
                                            then the Securities will not be
                                            sold, the Swap Counterparty's
                                            exercise, other than with respect to
                                            Securities being redeemed, will be
                                            rescinded (and the Swap Counterparty
                                            shall be entitled to exercise such
                                            call rights in the future) and any
                                            related Trust Wind-Up Event will be
                                            deemed not to have occurred.

Additional Issuance of Units:               Upon no less than 5 days' notice to
                                            the Trustee, the Depositor may
                                            deposit additional Securities at any
                                            time in exchange for additional
                                            Units in a minimum aggregate amount
                                            of $250,000 (with respect to the
                                            Class A Units issued ) and, if in
                                            excess of such amount, in a $25
                                            integral multiple in excess thereof
                                            (with respect to the Class A Units
                                            issued). The principal amount of
                                            Securities deposited must be in the
                                            same ratio to the Unit Principal
                                            Balance (and Notional Amount with
                                            respect to the Class B Units) of the
                                            Units received for such deposit as
                                            the ratio of the aggregate principal
                                            amount of the Securities deposited
                                            on the Closing Date to the aggregate
                                            Unit Principal Balance (and
                                            aggregate Notional Amount with
                                            respect to the Class B Units) on the
                                            Closing Date. The Depositor must
                                            either arrange for one or more Swap
                                            Counterparties and the Trust to
                                            increase proportionally the notional
                                            amount under the applicable Swap
                                            Agreement or arrange for an
                                            additional Swap Agreement, with a
                                            notional amount equal to the
                                            principal amount of the additional
                                            Securities deposited, to be entered
                                            into between the Trust and an
                                            additional Swap Counterparty (or a
                                            combination of an additional Swap
                                            Agreement and a notional balance
                                            increase of the existing Swap
                                            Agreement(s), with the combined
                                            effect of such proportional increase
                                            in the notional amount of the Swap
                                            Agreements). The Depositor must also
                                            arrange the issuance of Class B
                                            Units with a Notional Amount equal
                                            to the Unit Principal Balance of the
                                            Class A Units being issued in
                                            connection with an additional
                                            issuance. Any accrued interest will
                                            be reflected in the price of the
                                            additional Units and the Securities.
                                            The Rating Agency Condition must be
                                            satisfied in connection with any
                                            such additional issuance. Each Swap
                                            Counterparty must consent to any
                                            additional issuance.

Selling Agent:                              Morgan Stanley & Co. Incorporated.
                                            Notwithstanding any provision of the
                                            Standard Terms to the contrary, any
                                            sale of the Securities shall be
                                            conducted by and through the Selling
                                            Agent and not the Trustee.

Rating Agency Condition:                    The definition of Rating Agencies
                                            Condition in the Standard Terms
                                            shall not apply.

                                            "Rating Agency Condition": With
                                            respect to any specified action or
                                            determination, means receipt of (i)
                                            oral or written confirmation by
                                            Moody's (for so long as the Units
                                            are outstanding and rated by
                                            Moody's) and (ii) written
                                            confirmation by S&P (for so long as
                                            the Units are outstanding and rated
                                            by S&P), that such specified action
                                            or determination will not result in
                                            the reduction or withdrawal of their
                                            then-current ratings on the Units;
                                            provided, however, that if the
                                            Rating Agency Condition specified
                                            herein is to be satisfied only with
                                            respect to Moody's or S&P, only
                                            clause (i) or clause (ii) shall be
                                            applicable. Such satisfaction may
                                            relate either to a specified
                                            transaction or may be a confirmation
                                            with respect to any future
                                            transactions which comply with
                                            generally applicable conditions
                                            published by the applicable rating
                                            agency.

Eligible Account:                           The definition of "Eligible Account"
                                            in the Standard Terms shall not
                                            apply.

                                            "Eligible Account": A non-interest
                                            bearing account, held in the United
                                            States, in the name of the Trustee
                                            for the benefit of the Trust that is
                                            either (i) a segregated account or
                                            segregated accounts maintained with
                                            a Federal or State chartered
                                            depository institution or trust
                                            company the short-term and long-term
                                            unsecured debt obligations of which
                                            (or, in the case of a depository
                                            institution or trust company that is
                                            the principal subsidiary of a
                                            holding company, the short-term and
                                            long-term unsecured debt obligations
                                            of such holding company) are rated
                                            P-1 and Aa2 by Moody's, A-1+ and AA
                                            by S&P, and, if rated by Fitch, F1
                                            and AA by Fitch at the time any
                                            amounts are held on deposit therein
                                            including when such amounts are
                                            initially deposited and all times
                                            subsequent or (ii) a segregated
                                            trust account or segregated accounts
                                            maintained as a segregated account
                                            or as segregated accounts and held
                                            by the Trustee in its Corporate
                                            Trust Office in trust for the
                                            benefit of the Unitholders.

Permitted Investments:                      The following shall be a Permitted
                                            Investment in addition to the
                                            investments specified in the
                                            Standard Terms:

                                            Units of the Dreyfus Cash Management
                                            Fund Investor Shares or any other
                                            money market funds which are rated
                                            in the highest applicable rating
                                            category by each Rating Agency (or
                                            such lower rating if the Rating
                                            Agency Condition is satisfied).

Amendment of Trust Agreement:               Section 12.01(a) of the Standard
                                            Terms shall be replaced with the
                                            following:

                                            (a) The Trust Agreement may be
                                            amended from time to time by the
                                            Depositor and the Trustee without
                                            the consent of any of the
                                            Unitholders, upon delivery by the
                                            Depositor of an Opinion of Counsel
                                            acceptable to the Trustee to the
                                            effect that such amendment will not
                                            materially and adversely affect the
                                            interests of any holder of a Class
                                            of Units or any Swap Counterparty
                                            that is not voting with respect to
                                            such amendment pursuant to Section
                                            12.01(b), for any of the following
                                            purposes: (i) to cure any ambiguity
                                            or defect or to correct or
                                            supplement any provision in the
                                            Trust Agreement which may be
                                            defective or inconsistent with any
                                            other provision in the Trust
                                            Agreement; (ii) to provide for any
                                            other terms or modify any other
                                            terms with respect to matters or
                                            questions arising under the Trust
                                            Agreement; (iii) to amend the
                                            definitions of Trigger Amount and
                                            Maximum Reimbursable Amount so as to
                                            increase, but not decrease, the
                                            respective amounts contained in such
                                            definitions or to otherwise amend or
                                            waive the terms of Section 10.05(b)
                                            in any manner which shall not
                                            adversely affect the Unitholders in
                                            any material respect; (iv) to amend
                                            or correct or to cure any defect
                                            with respect to the Trustee Fee or
                                            Expense Administrator's fee; (v) to
                                            evidence and provide for the
                                            acceptance of appointment under the
                                            Trust Agreement by a successor
                                            Trustee; or (vi) to add or change
                                            any of the terms of the Trust
                                            Agreement as shall be necessary to
                                            provide for or facilitate the
                                            administration of the Trust,
                                            including any amendment necessary to
                                            ensure the classification of the
                                            Trust as a grantor trust for United
                                            States federal income tax purposes;
                                            provided, however, that in the case
                                            of any amendment pursuant to any of
                                            clauses (i) through (vi) above, the
                                            Rating Agency Condition shall be
                                            satisfied with respect to such
                                            amendment. If more than one Class of
                                            Units has been issued under the
                                            Trust Agreement, the provisions of
                                            this Section 12.01(a) shall apply to
                                            each Class of Units that is not
                                            materially and adversely affected by
                                            such amendment.

                                            Section 12.01(c) shall be
                                            re-designated Section 12.01(d).

                                            Section 12.01(b) shall be
                                            re-designated Section 12.01(c).

                                            The following shall constitute
                                            Section 12.01(b):

                                            (b) The Trust Agreement may be
                                            amended from time to time by the
                                            Depositor and the Trustee with the
                                            consent of a 100% of the outstanding
                                            Unit Principal Balance and Notional
                                            Amount, as applicable, of each Class
                                            of Units materially and adversely
                                            affected thereby. The Rating Agency
                                            Condition shall be satisfied with
                                            respect to such amendment unless
                                            Units representing 100% of the Unit
                                            Principal Balance of all affected
                                            Units vote in favor of such
                                            amendment with notice that the
                                            Rating Agency Condition will not be
                                            satisfied. No amendment to the Trust
                                            Agreement that would adversely
                                            effect the Swap Counterparty shall
                                            be effective without the consent of
                                            the Swap Counterparty.

                                            The following shall constitute
                                            Section 12.01(e):

                                            (e) For purposes of this Section
                                            12.01, Schedule III to any Trust
                                            Agreement and any Swap Agreements
                                            entered into in connection with any
                                            related Trust shall not be
                                            considered part of the Trust
                                            Agreement. Section 7.02 shall govern
                                            action taken under the Trust
                                            Agreement with respect to any
                                            amendments to such Swap Agreements.

Securities Intermediary:                    LaSalle Bank National Association
                                            acting in the capacity of securities
                                            intermediary.

Additional Representations
Of Trustee and Securities
Intermediary:                               The Unit Account is a "securities
                                            account" within the meaning of
                                            Section 8-501 of the UCC and is held
                                            only in the name of the Trust. The
                                            Securities Intermediary is acting
                                            with respect to the Unit Account in
                                            the capacity of a "securities
                                            intermediary" within the meaning of
                                            Section 8-102(a)(l4) of the UCC.

                                            All Securities have been (i)
                                            delivered to the Securities
                                            Intermediary pursuant to the Trust
                                            Agreements; (ii) credited to the
                                            Unit Account; and (iii) registered
                                            in the name of the Securities
                                            Intermediary or its nominee,
                                            indorsed to the Securities
                                            Intermediary or in blank or credited
                                            to another securities account
                                            maintained in the name of the
                                            Securities Intermediary. In no case
                                            will any Securities or other
                                            financial asset credited to a Unit
                                            Account be registered in the name of
                                            the Depositor, payable to the order
                                            of the Depositor or specially
                                            indorsed to the Depositor except to
                                            the extent the foregoing have been
                                            specially indorsed to the Securities
                                            Intermediary or in blank.

                                            The Unit Account is an account to
                                            which financial assets are or may be
                                            credited, and the Securities
                                            Intermediary shall treat the Trustee
                                            as entitled to exercise the rights
                                            that comprise any financial asset
                                            credited to the account.

                                            The Securities Intermediary hereby
                                            agrees that the Securities credited
                                            to the Unit Account shall be treated
                                            as a "financial asset" within the
                                            meaning of Section 8-102(a)(9) of
                                            the UCC.

                                            If at any time the Securities
                                            Intermediary shall receive any order
                                            from the Trustee directing the
                                            transfer or redemption of any
                                            Securities on deposit in any Unit
                                            Account, the Securities Intermediary
                                            shall comply with such entitlement
                                            order without further consent by the
                                            Depositor or any other Person. The
                                            Securities Intermediary shall take
                                            all instructions (including without
                                            limitation all notifications and
                                            entitlement orders) with respect to
                                            each Unit Account solely from the
                                            Trustee.

                                            The Securities Intermediary hereby
                                            confirms and agrees that:

                                            (a) There are no other agreements
                                            entered into between the Securities
                                            Intermediary and the Depositor with
                                            respect to any Unit Account;

                                            (b) It has not entered into, and
                                            until the termination of this
                                            Agreement will not enter into, any
                                            agreement with any other Person
                                            relating to any Unit Account and/or
                                            any financial assets credited
                                            thereto pursuant to which it has
                                            agreed to comply with entitlement
                                            orders (as defined in Section
                                            8-102(a)(8) of the UCC) of such
                                            other Person; and

                                            (c) It has not entered into, and
                                            until the termination of the Trust
                                            Agreements will not enter into, any
                                            agreement with the Depositor or the
                                            Trustee purporting to limit or
                                            condition the obligation of the
                                            Securities Intermediary to comply
                                            with entitlement orders as set forth
                                            above

                                            The Trustee hereby represents and
                                            warrants as follows:

                                            (a) The Trustee maintains its books
                                            and records with respect to its
                                            securities accounts in the State of
                                            Illinois; and

                                            (b) The Trustee has not granted any
                                            lien on the Securities nor are the
                                            Securities subject to any lien on
                                            properties of the Trustee in its
                                            individual capacity; the Trustee has
                                            no actual knowledge and has not
                                            received actual notice of any lien
                                            on the Securities (other than any
                                            liens of the Trustee in favor of the
                                            beneficiaries of the Trust
                                            Agreements); other than the
                                            interests of the Unitholders and the
                                            potential interests of the Call
                                            Option holders, the books and
                                            records of the Trustee do not
                                            identify any Person as having an
                                            interest in the Securities.

                                            The Trustee makes no representation
                                            as to (i) the validity, legality,
                                            sufficiency or enforceability of any
                                            of the Securities or (ii) the
                                            collectability, insurability,
                                            effectiveness or suitability of any
                                            of the Securities.

Additional Depositor
Representations:                            The Depositor hereby represents and
                                            warrants to the Trustee as follows
                                            (with respect to the Closing Date
                                            and any additional issuance):

                                            (a) Immediately prior to the
                                            transfer of the Securities to the
                                            applicable Trust, the Depositor
                                            owned and had good and marketable
                                            title to the Securities free and
                                            clear of any lien, claim or
                                            encumbrance of any Person.

                                            (b) The Depositor has received all
                                            consents and approvals required by
                                            the terms of the Securities to the
                                            transfer to the Trustee of its
                                            interest and rights in the
                                            Securities as contemplated by the
                                            Trust Agreements.

                                            (c) The Depositor has not assigned,
                                            pledged, sold, granted a security
                                            interest in or otherwise conveyed
                                            any interest in the Securities (or,
                                            if any such interest has been
                                            assigned, pledged or otherwise
                                            encumbered, it has been released),
                                            except such interests granted
                                            pursuant to the Trust Agreements.
                                            The Depositor has not authorized the
                                            filing of and is not aware of any
                                            financing statements against the
                                            Depositor that includes a
                                            description of the Securities, other
                                            than any such filings pursuant to
                                            the Trust Agreements. The Depositor
                                            is not aware of any judgment or tax
                                            lien filings against Depositor.

Other Terms:                                The Trust shall not merge or
                                            consolidate with any other trust,
                                            entity or person and the Trust shall
                                            not acquire the assets of, or an
                                            interest in, any other trust, entity
                                            or person except as specifically
                                            contemplated herein.

                                            The Trustee shall provide to the
                                            Unitholders and the Swap
                                            Counterparties copies of any notices
                                            it receives with respect to a
                                            redemption of or self-tender offer
                                            for the Securities or an exercise of
                                            the call rights under the Swap
                                            Agreement and any other notices with
                                            respect to the Securities. The
                                            Trustee shall provide to the Swap
                                            Counterparty any notice from the
                                            Securities Issuer regarding an early
                                            redemption of or self-tender offer
                                            for the Securities within two (2)
                                            Business Days of receipt of such
                                            notice.

                                            The reference to "B2" in the
                                            definition of Certificate in the
                                            Standard Terms shall be replaced
                                            with "Exhibit B2".

                                            The reference to "Section 10.02(ix)"
                                            in the definition of Available Funds
                                            in the Standard Terms shall be
                                            replaced with "Section
                                            10.02(a)(ix)".

                                            The reference to "Section 3.04" in
                                            the definition of Unit Account in
                                            the Standard Terms shall be replaced
                                            with "Section 3.05".

                                            The transfer by the Depositor to the
                                            Trustee specified in Section 2.01(a)
                                            of the Standard Terms shall be in
                                            trust.

                                            Section 2.06 of the Standard Terms
                                            shall be incorporated herein by
                                            inserting "cash in an amount equal
                                            to the premium under the Swap
                                            Agreement and" after the phrase
                                            "constituting the Trust Property,"
                                            therein.

                                            The reference to "calendar day" in
                                            the last sentence of Section 3.06 of
                                            the Standard Terms shall be replaced
                                            with "Business Day".

                                            Section 4.02(d) of the Standard
                                            Terms shall be incorporated herein
                                            by striking "and the Trustee on
                                            behalf of the Unitholders" from the
                                            first sentence of the second
                                            paragraph thereof.

                                            Section 5.03(c) of the Standard
                                            Terms shall be incorporated herein
                                            by striking "(if so required by the
                                            Trustee or the Unit Registrar)" from
                                            the first sentence thereof.

                                            Section 7.01(c)(i) of the Standard
                                            Terms shall be incorporated herein
                                            by replacing the first word thereof
                                            ("after") with "alter".

                                            Section 7.01(c) of the Standard
                                            Terms shall be incorporated herein
                                            by inserting "(i)" between
                                            "Securities" and "would" in the
                                            clause that begins "and provided,
                                            further," and adding at the end of
                                            the same sentence "and (ii) will not
                                            alter the classification of the
                                            Trust for Federal income tax
                                            purposes."

                                            Section 7.02 of the Standard Terms
                                            shall be incorporated herein by
                                            striking "(i) the Trustee determines
                                            that such amendment will not
                                            adversely affect the interests of
                                            the Unitholders and (ii)" from the
                                            first sentence thereof, inserting
                                            "on which it may conclusively rely"
                                            after "Opinion of Counsel" in such
                                            sentence, and striking "clause (ii)"
                                            from the second sentence of such
                                            Section.

                                            For the avoidance of doubt, Section
                                            9.03(c) of the Standard Terms shall
                                            not be incorporated herein. For the
                                            avoidance of doubt, the Securities
                                            may not be distributed to
                                            Unitholders under any circumstances,
                                            other than to the Depositor
                                            exercising exchangeable series
                                            rights.

                                            Section 9.03(i) of the Standard
                                            Terms shall be incorporated herein
                                            by striking "or oral" after the
                                            phrase "at any time by" in the third
                                            sentence thereof.

                                            Clause (ix) of Section 10.02(a)
                                            shall not apply.

                                            Section 10.02(a)(x) of the Standard
                                            Terms shall be replaced with the
                                            following:

                                            (x) the Trustee shall have the power
                                            to sell the Securities and other
                                            Trust Property, in accordance with
                                            Article IX and XI, through the
                                            Selling Agent or, if the Selling
                                            Agent shall have resigned or
                                            declined to sell some or all of the
                                            Securities, any broker selected by
                                            the Trustee (at the direction of the
                                            Depositor) with reasonable care, in
                                            an amount sufficient to pay any
                                            amount due to any Swap Counterparty
                                            under any Swap Agreement (including
                                            Termination Payments) or
                                            reimbursable to itself in respect of
                                            unpaid Extraordinary Trust Expenses
                                            and to use the proceeds thereof to
                                            make such payments after the
                                            distribution of funds or Trust
                                            Property to Unitholders. Any such
                                            broker shall be instructed by the
                                            Trustee to sell such Trust Property
                                            in a reasonable manner designed to
                                            maximize the sale proceeds.

                                            Section 10.05(b) of the Standard
                                            Terms shall be incorporated herein
                                            by replacing ", pursuant to the
                                            first sentence of this paragraph"
                                            with "the Trustee shall be
                                            indemnified by the Trust, however,"
                                            in the last sentence thereof.
                                            Section 10.06(a) of the Standard
                                            Terms shall be incorporated herein
                                            by inserting "or association" after
                                            the word "corporation" in the second
                                            sentence thereof.

                                            Section 10.07(a) of the Standard
                                            Terms shall be incorporated herein
                                            by replacing "notice or resignation"
                                            with "notice of resignation" in the
                                            second sentence thereof and striking
                                            the last two sentences thereof.

                                            Section 10.10(b) of the Standard
                                            Terms shall be incorporated herein
                                            by inserting "The Trustee shall not
                                            be liable for the acts or omissions
                                            of any co-trustee." after the last
                                            sentence thereof.

                                            Section 10.14 of the Standard Terms
                                            shall be replaced with the
                                            following:

                                            SECTION 10.14. Non-Petition. Prior
                                            to the date that is one year and one
                                            day after all distributions in
                                            respect of the Units have been made,
                                            none of the Trustee, the Trust or
                                            the Depositor shall take any action,
                                            institute any proceeding, join in
                                            any action or proceeding or
                                            otherwise cause any action or
                                            proceeding against any of the others
                                            under the United States Bankruptcy
                                            Code or any other liquidation,
                                            insolvency, bankruptcy, moratorium,
                                            reorganization or similar law
                                            ("Insolvency Law") applicable to any
                                            of them, now or hereafter in effect,
                                            or which would be reasonably likely
                                            to cause any of the others to be
                                            subject to, or seek the protection
                                            of, any such Insolvency Law.

                                            Section 12.01(a) of the Standard
                                            Terms shall be incorporated herein
                                            by replacing "(v)" with "(vi)" in
                                            the last proviso thereof.

                                            Section 12.01(c) of the Standard
                                            Terms shall be incorporated herein
                                            by inserting ", provided at the
                                            expense of the party requesting such
                                            amendment," after "Opinion of
                                            Counsel".

                                            Section 12.05 of the Standard Terms
                                            shall be incorporated herein by
                                            striking "the Trustee and" in the
                                            last sentence of the second
                                            paragraph thereof.

                                            The reference to "its President, its
                                            Treasurer, or one of its Vice
                                            Presidents, Assistant Vice
                                            Presidents or Trust Officers" in the
                                            first sentence of Section 5.02(a) of
                                            the Standard Terms shall be replaced
                                            with "a Responsible Officer".

                                            The reference to "the proper
                                            officers" in the second sentence of
                                            Section 5.02(a) of the Standard
                                            Terms shall be replaced with "a
                                            Responsible Officer".

                                            The reference to "one of its
                                            authorized signatories" in the first
                                            sentence of Section 5.02(d) of the
                                            Standard Terms shall be replaced
                                            with "a Responsible Officer".

                                            The reference to the "Trust" in the
                                            first sentence of Section 5.08(b) of
                                            the Standard Terms shall be replaced
                                            with the "Trustee".

                                            References to D&P in the Standard
                                            Terms shall be incorporated as
                                            references to Fitch Inc. ("Fitch").

<PAGE>

                                   Schedule II
                            (Terms of Trust Property)

Securities:                                 Aon Capital A 8.205% trust preferred
                                            capital securities due January 1,
                                            2027

Security Issuer:                            Aon Capital A

Security Guarantor:                         Aon Corporation

                                            The Security Guarantor will be
                                            considered the "Security Issuer" for
                                            purposes of determining whether the
                                            Security Issuer is an Eligible
                                            Issuer and whether the Securities
                                            are Disqualified Securities.

Guarantor Debentures:                       The Security Guarantor's 8.205%
                                            junior subordinated debentures due
                                            2027. Such debentures are the only
                                            assets of the Security Issuer.

                                            In the event that the Guarantor
                                            Debentures are exchanged for the
                                            Securities or distributed in
                                            liquidation of the Security Issuer,
                                            the Guarantor Debentures shall be
                                            treated as the Securities for all
                                            purposes and the Security Guarantor
                                            shall be treated as the Security
                                            Issuer for all purposes. Such
                                            exchange or liquidation shall not be
                                            considered a redemption.

Principal Amount:                           $41,608,000

Security Rate:                              8.205%

Credit Ratings:                             Baa3 by Moody's

                                            BBB by S&P

Listing:                                    None

Security                                    Agreement: As to the Securities, the
                                            amended and restated declaration of
                                            trust dated as of January 13, 1997
                                            relating to the Security Issuer. As
                                            to the Guarantor Debentures, the
                                            indenture, dated as of January 13,
                                            1997, between the Security Guarantor
                                            and The Bank of New York.

Form:                                       Global

Currency of
Denomination:                               United States dollars

Acquisition Price by Trust:                 $41,050,368

Security Payment Date:                      Each January 1 and July 1

Original                                    Issue Date: The Securities were
                                            issued on or about January 13, 1997.
                                            The Security Issuer offered to
                                            exchange the securities then issued
                                            for publicly registered securities
                                            and such offering closed on or about
                                            May 5, 1997.

Maturity Date:                              January 1, 2027.

Sinking Fund Terms:                         Not Applicable

Redemption Terms:                           The Guarantor Debentures and the
                                            Securities may be redeemed upon a
                                            "tax event" or an "investment
                                            company event" (as defined in the
                                            underlying indenture and trust
                                            agreement). The Guarantor Debentures
                                            may also be distributed in exchange
                                            for the Securities or in liquidation
                                            of the Issuer. In such event the
                                            Guarantor Debentures would become
                                            the Securities under the Trust
                                            Agreement.

CUSIP No.:/ISIN No.                         037388AE5

Security Trustee:                           The Bank of New York

Guarantor Debenture Trustee:                The Bank of New York

Available Information Regarding
the Security Issuer
(if other than U.S.
Treasury obligations):                      The Security Guarantor is subject to
                                            the informational requirements of
                                            the Securities Exchange Act of 1934,
                                            as amended, and in accordance
                                            therewith files reports and other
                                            information with the Securities and
                                            Exchange Commission (the
                                            "Commission"). Such reports and
                                            other information can be inspected
                                            and copied at the public reference
                                            facilities maintained by the
                                            Commission at 450 Fifth Street,
                                            N.W., Washington, D.C. 20549 and at
                                            the following Regional Offices of
                                            the Commission: Woolworth Building,
                                            233 Broadway, New York, New York
                                            10279, and Northwest Atrium Center,
                                            500 West Madison Street, Chicago,
                                            Illinois 60661. Copies of such
                                            materials can be obtained from the
                                            Public Reference Section of the
                                            Commission at 450 Fifth Street,
                                            N.W., Washington, District of
                                            Columbia 20549 at prescribed rates.

<PAGE>

                                  Schedule III
                              (Call Option Confirm)

                                                                  MORGAN STANLEY

--------------------------------------------------------------------------------
Date:      February 27, 2003

To:        SATURNS Trust No. 2003-3        From:      Morgan Stanley & Co.
                                                      International Limited

Attn:      Asset-Backed Securities Group   Contact:   John Kehoe
           SATURNS Trust No. 2003-3

Fax:       312-904-2084                    Fax:       212-761-0406

Tel:       312-904-9387                    Tel:       212-761-1395
--------------------------------------------------------------------------------

Re: Bond Option Transaction. MS Reference Number SQ256

         The purpose of this letter agreement is to confirm the terms and
conditions of the Transaction entered into between you and Morgan Stanley & Co.
International Limited ("MSIL"), with Morgan Stanley & Co. Incorporated
("MS&Co."), as agent, on the Trade Date specified below (the "Transaction").
This letter agreement constitutes a "Confirmation" as referred to in the
Agreement below.

         The definitions and provisions contained in the 1997 ISDA Government
Bond Option Definitions as published by the International Swaps and Derivatives
Association, Inc. ("ISDA") are incorporated into this Confirmation and this
transaction shall be deemed a "Government Bond Option Transaction" for purposes
of such definitions. In the event of any inconsistency between those definitions
and this Confirmation, this Confirmation will govern.

         1. This Confirmation supplements, forms a part of, and is subject to,
the ISDA Master Agreement dated as of the date hereof, as amended and
supplemented from time to time (the "Agreement"), between you and us. All
provisions contained in the Agreement govern this Confirmation except as
expressly modified below.

         2. The terms of the particular Transaction to which this Confirmation
relates are as follows:

I. General Terms
----------------

Trade Date:                                 February 27, 2003

Option Style:                               American

Option Type:                                Call

Buyer:                                      MSIL ("Party A")

Seller:                                     SATURNS Trust No. 2003-3 ("Party B")

Bonds:                                      The obligation identified as
                                            follows:

                                            Bond Issuer: Aon Capital A
                                            Issue:       8.205% trust preferred
                                                         capital
                                                         securities due 2027
                                            CUSIP:       037388AE 5
                                            Coupon:      8.205%
                                            Maturity
                                            Date:        January 1, 2027
                                            Face Amount
                                            Purchased:   USD 41,608,000

Premium:                                    USD $104,020

Premium Payment Date:                       February 27, 2003

Number of Options:                          41,608

Option Entitlement:                         USD 1,000 of face amount of the
                                            Bonds per Option.

Strike Price:

                                            (i) For any Exercise Date prior to
                                            February 27, 2008, the redemption
                                            price of the Bonds including any
                                            make-whole amount (expressed as a
                                            percentage) subject to a maximum of
                                            110%, in the case of an exercise
                                            related to a redemption, or 106%, in
                                            the case of an exercise related to a
                                            self-tender by the Bond Issuer for
                                            Bonds held by the Trust, in each
                                            case of the corresponding portion of
                                            the face amount of the Bonds but
                                            exclusive of accrued interest on the
                                            Bonds or (ii) for any Exercise Date
                                            on or after February 27, 2008, 100%
                                            of the face amount of the Bonds
                                            exclusive of accrued interest.

Calculation Agent:                          Party A

II. Exercise Terms
------------------

Automatic Exercise:                         Inapplicable

Exercise Period:                            Any Business Day from, and
                                            including, 9:00 a.m. (New York time)
                                            on February 27, 2008, to, and
                                            including, the Expiration Time on
                                            the Expiration Date; provided,
                                            however, the Exercise Period shall
                                            also include any Business Day prior
                                            to February 27, 2008, if notice of
                                            redemption or self-tender has been
                                            delivered by the Bond Issuer as to
                                            Bonds held by the Trust.

Exercise Date:                              For each Option exercised, the day
                                            during the Exercise Period on which
                                            that Option is exercised.

Rescission of Exercise:                     Party A may rescind its notice of
                                            exercise at any time prior to the
                                            Settlement Date by providing notice
                                            of rescission to Party B.

                                            If Cash Settlement applies and if
                                            Party B cannot obtain a bid for
                                            the Bonds held by it in excess of
                                            the Strike Price together with
                                            accrued interest on the Bonds,
                                            then Party A's notice of exercise
                                            shall be rescinded; provided that
                                            this provision shall not apply in
                                            connection with a redemption. If
                                            Cash Settlement applies and if
                                            Party A exercises its Options in
                                            connection with a self-tender for
                                            settlement prior to February 27,
                                            2008, Party A's notice of exercise
                                            shall be automatically rescinded
                                            if the price offered by the Bond
                                            Issuer does not exceed the Strike
                                            Price together with accrued
                                            interest on the Bonds.

                                            Upon any rescission of exercise
                                            (whether pursuant to the foregoing
                                            sentence or otherwise) the Options
                                            for which notice of exercise was
                                            given and for which exercise was
                                            rescinded shall continue in full
                                            force and effect without regard to
                                            such provision of notice.

                                            Any Options exercised under this
                                            Transaction may be deemed
                                            rescinded to the extent so
                                            provided under Schedule I to the
                                            Trust Agreement.

Multiple Exercise:                          Applicable

Minimum Number of Options:                  1

Written Confirmation of Exercise:           Applicable. Buyer shall give
                                            exercise notice which may be given
                                            orally (including by telephone)
                                            during the Exercise Period but no
                                            later than the Notification Date.
                                            Buyer will execute and deliver a
                                            written exercise notice confirming
                                            the substance of such oral notice,
                                            however, failure to provide such
                                            written notice will not affect the
                                            validity of the oral notice.

Limitation on Rights of MSIL:               Buyer may, by written notice thereof
                                            to Seller, delegate its rights to
                                            provide a notice of exercise
                                            hereunder to a third party (the
                                            "Third Party"). Any such delegation
                                            will be irrevocable by Buyer without
                                            the written consent of the Third
                                            Party. Any such Third Party will
                                            have the same rights and obligations
                                            regarding providing notice of
                                            exercise hereunder as the Buyer had
                                            prior to such delegation. While any
                                            such delegation is effective, Seller
                                            will only recognize a notice of
                                            exercise that is provided by the
                                            Third Party.

Notification Date:                          The Swap Counterparty may give
                                            notice of its intention to exercise
                                            the call rights under the Swap
                                            Agreement on not less than 15 or
                                            more than 60-calendar days' notice.
                                            The Swap Counterparty may give
                                            notice of its intention to exercise
                                            its call rights under the Swap
                                            Agreement with respect to Bonds held
                                            by the Trust as to which the Bond
                                            Issuer has given notice of its
                                            intention to redeem or notice of a
                                            self-tender with two business days
                                            notice prior to the settlement of
                                            exercise but no later than 4:00 p.m.
                                            New York time on the second Business
                                            Day immediately preceding the
                                            scheduled settlement of the
                                            redemption or self-tender.

Limited Right to Confirm Exercise:          Inapplicable

Expiration Date:                            January 1, 2024

Expiration Time:                            4:00 p.m. New York time

Business Days:                              New York and Chicago

III. Settlements:
-----------------

Settlement:                                 Cash Settlement if MSIL is Party A
                                            or if the Options are exercised in
                                            connection with a redemption or
                                            self-tender; otherwise Physical
                                            Settlement. Party A will notify
                                            Party B separately regarding the
                                            clearance system details for
                                            Physical Settlement.

Spot Price (Cash Settlement Only):          The cash proceeds received by Party
                                            B in connection with sale of the
                                            Bonds by Party B, excluding any
                                            amounts in respect of accrued
                                            interest. In the event of a
                                            redemption or self-tender by the
                                            Bond Issuer, the redemption price or
                                            self tender price, as applicable,
                                            paid by the Bond Issuer, excluding
                                            accrued interest.

Cash Settlement Amount (Cash
Settlement Only):                           The Cash Settlement Amount shall be
                                            adjusted to reflect the Additional
                                            Payment Obligation of Party A.

Bond  Payment (Physical Settlement Only):   The Bond Payment shall also include
                                            the Additional Payment Obligation of
                                            Party A.

Deposit of Bond Payment (Physical           Party A must  deposit the Bond
                                            Payment with the Trustee on
Settlement Only):                           the Business Day prior to the
                                            Exercise Date. The Bonds
                                            are to be delivered "free" to
                                            Party A.

Additional Payment Obligation of Party A:   To the Expense Administrator (the
                                            "Expense Administrator Payment
                                            Obligation"):

                                            If the Bond Issuer has not given
                                            notice of redemption in connection
                                            with the exercise of Options
                                            hereunder and if any such exercise
                                            is an exercise of less than all
                                            Options remaining unexercised
                                            hereunder, Party A shall pay to the
                                            Expense Administrator an amount
                                            equal to the present value of a
                                            stream of payments equal to $6,512
                                            payable on each payment date for the
                                            Bonds until the maturity of the
                                            Bonds discounted at a rate of 5% per
                                            annum on the basis of a 360 day year
                                            consisting of twelve 30 day months
                                            from the date of such exercise until
                                            the Scheduled Final Distribution
                                            Date (as defined in the Trust
                                            Agreement), assuming for this
                                            purpose that the Trust (as defined
                                            in the Trust Agreement) is not
                                            terminated prior to the Scheduled
                                            Final Distribution Date, multiplied
                                            by the Option Entitlement multiplied
                                            by the number of Options exercised
                                            and divided by $41,608,000.

                                            To Party B for Payment on the
                                            Class B Units (the "Class B Unit
                                            Payment Obligation"):

                                            Upon any exercise hereunder, Party
                                            A shall pay to Party B (whether
                                            Cash Settlement or Physical
                                            Settlement applies), for
                                            distribution with respect to the
                                            Class B Units outstanding under
                                            the Trust Agreement, the Class B
                                            Present Value Amount (as defined
                                            in the Trust Agreement).

Settlement Date:                            For Cash Settlement, as applicable,
                                            the Business Day of settlement of
                                            the sale of the Bonds by Party B or
                                            the Business Day of settlement of a
                                            redemption of Bonds by the Bond
                                            Issuer. For Physical Settlement, the
                                            Exercise Date.

         3. Additional Definitions.

         "Expense Administrator" means LaSalle Bank National Association acting
pursuant to the "Expense Administration Agreement".

         "Trust Agreement" means the trust agreement dated as of the date hereof
between the MS Structured Asset Corp. and LaSalle Bank National Association.

         4. Representations. Morgan Stanley & Co. Incorporated is acting as
agent for both parties but does not guarantee the performance of Party A.

         5. Additional Termination Event. As set forth in the Agreement, a Trust
Wind-Up Event will result in an Additional Termination Event under the Agreement
with respect to which Party B shall be the Affected Party and this Transaction
shall be an Affected Transaction. A redemption by the Bond Issuer of a portion
of the Bonds held by Party B will result in a partial Additional Termination
Event to the extent of the Bonds being so redeemed (or, to the extent there are
multiple Swap Counterparties, to such portion of the Bonds being redeemed
allocable to the options held by Party A) if Party A does not exercise Options
hereunder corresponding to such Bonds.

         6. Swap Termination Payments. In the event an Early Termination Date is
designated with respect to which this Transaction is an Affected Transaction,
there shall be payable to Party A as a termination payment for each option so
terminated in lieu of the termination payment determined in accordance with
Section 6(e) of the Agreement, the amount specified as the Swap Termination
Payment in the Trust Agreement.

         7. Assignment. The rights under this Confirmation and the Agreement may
be assigned at any time and from time to time in whole or in part; provided that
the Rating Agency Condition (as defined in the Trust Agreement) is satisfied
with respect to such assignment and any transfer. The transferee in any such
assignment or transfer must be a qualified institutional buyer as defined in
Rule 144A under the Securities Act of 1933, as amended.

         8. Account Details.

Payments to Party A:                        Citibank, N.A., New York
                                            SWIFT BIC Code: CITIUS33
                                            ABA No.  021 000 089
                                            FAO: Morgan Stanley & Co.
                                            International Limited
                                            Account No. 3042-1519

Operations Contact:                         Barbara Kent
                                            Tel  212-537-1449
                                            Fax  212-537-1868

Payments to Party B:                        LaSalle Bank, Chicago, Illinois
                                            ABA No. 071 000 505
                                            Reference:  SATURNS 2003-3
                                            Unit Account / AC-2090067/
                                            Account No.: 67-9170-209

Operations Contact:                         Andy Streepey
                                            Tel:  312-904-9387
                                            Fax: 312-904-2084

<PAGE>

                                                                  MORGAN STANLEY

         Please confirm that the foregoing correctly sets forth the terms of our
agreement MS Reference Number SQ256 by executing this Confirmation and returning
it to us.

Best Regards,

MORGAN STANLEY & CO. INTERNATIONAL LIMITED

BY: /s/ John Kehoe
   -------------------------
     Name:  John Kehoe
     Title: Attorney in fact

Acknowledged and agreed as of the date first written above:

SATURNS TRUST NO. 2003-3
BY:  LaSalle Bank National Association,
      solely as Trustee and not in its individual capacity.

BY: /s/ Ann M. Kelly
   -------------------------
     Name:  Ann M. Kelly
     Title: Assistant Vice President

MORGAN STANLEY & CO. INCORPORATED hereby agrees to and
acknowledges its role as agent for both parties in accordance with
the Schedule to the Agreement.

BY: /s/ John Kehoe
   -------------------------
     Name:  John Kehoe
     Title: Attorney in factFORM OF TRUST PREFERRED SECURITIES GUARANTEE AGREEMENT

 
Exhibit 4.12

 
FORM OF TRUST PREFERRED SECURITIES GUARANTEE
AGREEMENT 
 
DATED AS OF
                     
 
BY AND BETWEEN 
 
CSX CORPORATION, 
AS GUARANTOR 
 
AND 
 
JPMORGAN CHASE BANK, 
AS TRUSTEE 
 

 
CROSS
REFERENCE TABLE* 
 

	 SECTION OF TRUST
 INDENTURE ACT OF
 1939, AS AMENDED

	  	 SECTION OF
 GUARANTEE
 AGREEMENT

	 310(a)
	  	 4.1(a)

	 310(b)
	  	 2.8; 4.1(c)

	 310(c)
	  	 Inapplicable

	 311(a)
	  	 2.2(b)

	 311(b)
	  	 2.2(b)

	 311(c)
	  	 Inapplicable

	 312(a)
	  	 2.2(a); 2.9

	 312(b)
	  	 2.2(b); 2.9

	 312(c)
	  	 2.9

	 313(a)
	  	 2.3

	 313(b)
	  	 2.3

	 313(c)
	  	 2.3

	 313(d)
	  	 2.3

	 314(a)
	  	 2.4

	 314(b)
	  	 Inapplicable

	 314(c)
	  	 2.5

	 314(d)
	  	 Inapplicable

	 314(e)
	  	 1.1; 2.5; 3.2

	 314(f)
	  	 Inapplicable

	 315(a)
	  	 3.1(d); 3.2(a)

	 315(b)
	  	 2.7(a)

	 315(c)
	  	 3.1(c)

	 315(d)
	  	 3.1(d)

	 315(e)
	  	 Inapplicable

	 316(a)
	  	 2.6; 5.4(a)

	 316(b)
	  	 5.3

	 316(c)
	  	 2.2

	 317(a)
	  	 2.10

	 317(b)
	  	 Inapplicable

	 318(a)
	  	 2.1(b)

* THIS CROSS-REFERENCE TABLE DOES NOT
CONSTITUTE PART OF THE AGREEMENT AND SHALL NOT HAVE ANY BEARING UPON THE INTERPRETATION OF ANY OF ITS TERMS OR PROVISIONS. 
 

TABLE OF CONTENTS 
 

	 	  	 	  	 PAGE

	
	 ARTICLE 1    INTERPRETATION AND
DEFINITIONS
	  	 1

	
	 SECTION 1.    
	  	 Interpretation and Definitions
	  	 1

	
	 ARTICLE 2     TRUST INDENTURE ACT
	  	 6

	 SECTION 2.1  
	  	 Trust Indenture Act; Application
	  	 6

	 SECTION 2.2  
	  	 Lists of Holders of Securities
	  	 6

	 SECTION 2.3  
	  	 Reports by Guarantee Trustee
	  	 6

	 SECTION 2.4  
	  	 Periodic Reports to Guarantee Trustee
	  	 7

	 SECTION 2.5  
	  	 Evidence of Compliance with Conditions Precedent
	  	 7

	 SECTION 2.6  
	  	 Guarantee Event of Default; Waiver
	  	 7

	 SECTION 2.7  
	  	 Guarantee Event of Default; Notice
	  	 7

	 SECTION 2.8  
	  	 Conflicting Interests
	  	 7

	 SECTION 2.9  
	  	 Disclosure of Information
	  	 8

	         SECTION 2.10
	  	 Guarantee Trustee May File Proofs of Claim
	  	 8

	
	 ARTICLE 3    POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE
	  	 8

	 SECTION 3.1  
	  	 Powers and Duties of Guarantee Trustee
	  	 8

	 SECTION 3.2  
	  	 Certain Rights of Guarantee Trustee
	  	 10

	 SECTION 3.3  
	  	 Not Responsible for Recitals or Issuance of Guarantee
	  	 12

	
	 ARTICLE 4    GUARANTEE TRUSTEE
	  	 12

	 SECTION 4.1  
	  	 Guarantee Trustee; Eligibility
	  	 12

	 SECTION 4.2  
	  	 Appointment, Removal and Resignation of Guarantee Trustee
	  	 12

	
	 ARTICLE 5    GUARANTEE
	  	 13

	 SECTION 5.1  
	  	 Guarantee
	  	 13

	 SECTION 5.2  
	  	 Waiver of Notice and Demand
	  	 14

	 SECTION 5.3  
	  	 Obligations Not Affected
	  	 14

	 SECTION 5.4  
	  	 Rights of Holders
	  	 15

	 SECTION 5.5  
	  	 Guarantee of Payment
	  	 16

	 SECTION 5.6  
	  	 Subrogation
	  	 16

	 SECTION 5.7  
	  	 Independent Obligations
	  	 16

	
	 ARTICLE 6    LIMITATION OF TRANSACTIONS; SUBORDINATION
	  	 16

	 SECTION 6.1  
	  	 Limitation of Transactions
	  	 16

	 SECTION 6.2  
	  	 Ranking
	  	 17

	 SECTION 6.3  
	  	 Subordination of Common Securities
	  	 17

	
	 ARTICLE 7    TERMINATION
	  	 17

	 SECTION 7.1  
	  	 Termination
	  	 17

 

i 

	 ARTICLE 8    INDEMNIFICATION
	  	 18

	 SECTION 8.1  
	  	 Exculpation
	  	 18

	 SECTION 8.2  
	  	 Compensation, Expenses and Indemnification
	  	 18

	
	 ARTICLE 9    MISCELLANEOUS
	  	 19

	         SECTION 9.1  
	  	 Successors and Assigns
	  	 19

	 SECTION 9.2  
	  	 Amendments
	  	 19

	 SECTION 9.3  
	  	 Notices
	  	 19

	 SECTION 9.4  
	  	 Benefit
	  	 20

	 SECTION 9.5  
	  	 Governing Law
	  	 20

 

ii 

 
TRUST
PREFERRED SECURITIES GUARANTEE AGREEMENT 
 
This TRUST PREFERRED SECURITIES GUARANTEE AGREEMENT (the “Guarantee”), dated as of                     , is executed
and delivered by CSX CORPORATION, a Virginia corporation (the “Guarantor”), and JPMORGAN CHASE BANK, a New York banking corporation, as trustee (the “Guarantee Trustee”), for the benefit of the Holders (as defined herein) from
time to time of the Securities (as defined herein) of CSX CAPITAL TRUST I, a Delaware statutory trust (the “Trust”). 
 
RECITALS 
 
WHEREAS, pursuant to the Trust Agreement (as defined herein), the Trust is initially issuing on the date hereof (i)
$                     aggregate liquidation amount of Trust Preferred Securities, having a liquidation amount of
$                     per security and designated the “            
             % Trust Preferred Securities” of the Trust and may, from time to time, issue additional Tranches (as defined herein) of such securities in the future (the
“Trust Preferred Securities”) and (ii) $                 aggregate liquidation amount of common securities, having a liquidation amount equal to
approximately         % of the total capital of the Trust and designated the “    % Common Securities” of the Trust and may, from time to time, issue additional
Tranches (as defined herein) of such securities in the future (the “Common Securities” and, together with the Trust Preferred Securities, the “Securities”); 
 
WHEREAS, the Securities will be issued by the Trust and the proceeds thereof will be used to purchase the
Subordinated Debentures of the Guarantor, which will be held by the Trust as trust assets; 
 
WHEREAS, as incentive for the Holders to purchase the Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth in this Guarantee, to pay to the Holders of the
Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein; and 
 
WHEREAS, if a Trust Enforcement Event (as defined herein) has occurred and is continuing, the rights of holders of the Common Securities
to receive Guarantee Payments (as defined herein) under this Guarantee are subordinated to the rights of Holders of Trust Preferred Securities to receive Guarantee Payments under this Guarantee; 
 
NOW, THEREFORE, in consideration of the purchase by each
Holder of Securities, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of the Holders. 

ARTICLE 1 
 
INTERPRETATION AND DEFINITIONS 
 
SECTION 1.1 INTERPRETATION AND DEFINITIONS. In this Guarantee, unless the context otherwise requires:

 
(a) capitalized terms used in this Guarantee but
not defined in the preamble above have the respective meanings assigned to them in this Section 1.1; 
 
(b) a term defined anywhere in this Guarantee has the same meaning throughout; 
 
(c) all references to “the Guarantee” or “this
Guarantee” are to this Guarantee as modified, supplemented or amended from time to time; 
 
(d) all references in this Guarantee to Articles, Sections and Recitals are to Articles, Sections and Recitals of this Guarantee, unless otherwise specified; 
 
(e) unless otherwise defined in this Guarantee, a term defined
in the Trust Indenture Act has the same meaning when used in this Guarantee; 
 
(f) a reference to the singular includes the plural and vice versa and a reference to any masculine form of a term shall include the feminine form of a term, as applicable; and 
 
(g) the following terms have the following meanings:

 
“AFFILIATE” has the same meaning as
given to that term in Rule 405 of the Securities Act of 1933, as amended, or any successor rule thereunder. 
 
“BUSINESS DAY” has the meaning specified in the Trust Agreement. 
 
“TRUST PREFERRED SECURITIES” has the meaning specified in the Recitals hereto. 
 
“COMMON SECURITIES” has the meaning specified in the
Recitals hereto. 
 
“CORPORATE TRUST
OFFICE” means the office of the Guarantee Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date of execution of this Guarantee is located at 450 West 33rd Street, New York, New York 10001, Attention: Institutional Trust Services. 
 
“COVERED PERSON” means a Holder or beneficial owner
of Securities. 
 

2 

 
“GLOBAL
SECURITY” means a fully registered, global Trust Preferred Security representing the Trust Preferred Securities. 
 
“GUARANTEE EVENT OF DEFAULT” means a default by the Guarantor on any of its payment obligations under this Guarantee.

 
“GUARANTEE PAYMENTS” means the
following payments or distributions, without duplication, with respect to the Securities, to the extent not paid by or on behalf of the Trust: (i) any accumulated and unpaid Distributions (as defined in the Trust Agreement) that are required to be
paid on such Securities to the extent the Trust has funds legally and immediately available therefor at the time, (ii) the Redemption Price, including all accumulated and unpaid Distributions to the date of redemption, with respect to any Securities
called for redemption by the Trust, to the extent the Trust shall have funds legally and immediately available therefor at the time or (iii) upon a voluntary or involuntary dissolution, winding-up or termination of the Trust (other than in
connection with the distribution of Subordinated Debentures to the Holders in exchange for Securities as provided in the Trust Agreement), the lesser of (a) the aggregate of the liquidation amount and all accumulated and unpaid Distributions on the
Securities to the date of payment, to the extent the Trust has funds legally and immediately available therefor and (b) the amount of assets of the Trust remaining available for distribution to Holders in liquidation of the Trust (in either case,
the “Liquidation Distribution”). 
 
“GUARANTEE TRUSTEE” means JPMorgan Chase Bank, until a successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee and thereafter means each such Successor
Guarantee Trustee. 
 
“HOLDER” means any
holder of Securities, as registered on the books and records of the Trust; provided, however, that, in determining whether the Holders of the requisite percentage of Trust Preferred Securities have given any request, notice, consent or waiver
hereunder, “Holder” shall not include the Guarantor or any Affiliate of the Guarantor or any other obligor on the Trust Preferred Securities; and provided further that in determining whether the Holders of the requisite liquidation amount
of Trust Preferred Securities have voted on any matter provided for in this Guarantee, then for the purpose of such determination only (and not for any other purpose hereunder), if the Trust Preferred Securities remain in the form of one or more
Global Certificates (as defined in the Trust Agreement) and if the Depositary which is the holder of such Global Securities has sent an omnibus proxy to the Trust assigning voting rights to Depositary Participants (as defined in the Trust Agreement)
to whose accounts the Trust Preferred Securities are credited on the record date, the term “Holders” shall mean such Depositary Participants acting at the direction of the Beneficial Owners (as defined in the Trust Agreement).

 

3 

 
“INDEMNIFIED PERSON” means the Guarantee Trustee, any Affiliate of the Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees, representatives, nominees, custodians or agents of the
Guarantee Trustee. 
 
“INDENTURE” means
the Subordinated Indenture, dated as of                           ,
             by and between CSX Corporation and JP Morgan Chase Bank as Trustee, as supplemented, pursuant to which the Subordinated Debentures are to be issued to the Property
Trustee as defined in the Trust Agreement. 
 
“LIST OF HOLDERS” has the meaning assigned to it in Section 2.2 hereof. 
 
“MAJORITY IN LIQUIDATION AMOUNT” means, except as provided in the terms of the Trust Preferred Securities or by the Trust
Indenture Act, Holder(s) of outstanding Securities, voting together as a single class, or, as the context may require, Holders of outstanding Trust Preferred 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 accumulated and unpaid Distributions to the date upon which the voting
percentages are determined) of all outstanding Securities of the relevant class. In determining whether the Holders of the requisite amount of Securities have voted, Securities that are owned by the Guarantor or any Affiliate of the Guarantor or any
other obligor on the Securities shall be disregarded for the purpose of any such determination. 
 
“OFFICERS’ CERTIFICATE” means, with respect to any Person, a certificate signed on behalf of such Person by two Authorized Officers (as defined in the Trust Agreement) of such Person.
Any Officers’ Certificate delivered with respect to compliance with a condition or covenant provided for in this Guarantee (other than pursuant to Section 314(a)(4) of the Trust Indenture Act) 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 on behalf of such Person 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 on behalf of such Person 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 acting on behalf of such Person, such condition or covenant has been complied with. 
 

4 

 
“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. 
 
“REDEMPTION PRICE” has the meaning specified in the Trust Agreement. 
 
“RESPONSIBLE OFFICER” means, with respect to the Guarantee Trustee, any officer with direct responsibility for the
administration of this Guarantee and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject.

 
“SECURITIES” has the meaning specified
in the Recitals hereto. 
 
“SUBORDINATED
DEBENTURES” means the series of Subordinated Debentures to be issued, from time to time, by CSX Corporation designated the “_________________________________” held by the Property Trustee as defined in the Trust Agreement.

 
“SUCCESSOR GUARANTEE TRUSTEE” means a
successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 4.1. 
 
“TRANCHE” has the meaning specified in the Trust Agreement. 
 
“TRUST AGREEMENT” means the Amended and Restated Trust Agreement of the Trust, dated as of
______________, as amended, modified or supplemented from time to time, among the trustees of the Trust named therein, the Guarantor, as sponsor, and the Holders, from time to time, of undivided beneficial ownership interests in the assets of the
Trust. 
 
“TRUST ENFORCEMENT EVENT” in
respect of the Securities means an Event of Default (as defined in the Indenture) has occurred and is continuing in respect of the Subordinated Debentures. 
 
“TRUST INDENTURE ACT” means the Trust Indenture Act of 1939, as amended from time to time, or any successor legislation.

 

5 

 
ARTICLE 2

 
TRUST INDENTURE ACT 
 
SECTION 2.1 TRUST INDENTURE ACT; APPLICATION. 
 
(a) This Guarantee is subject to the provisions of the Trust
Indenture Act that are required to be part of this Guarantee and shall, to the extent applicable, be governed by such provisions. 
 
(b) If and to the extent that any provision of this Guarantee limits, qualifies or conflicts with the duties imposed by Sections 310 to
317, inclusive, of the Trust Indenture Act, such imposed duties shall control. 
 
SECTION 2.2 LISTS OF HOLDERS OF SECURITIES. 
 
(a) The Guarantor shall provide the Guarantee Trustee (i) except while the Trust Preferred Securities are represented by one or more Global Securities, at least one Business Day prior to the date for
payment of Distributions, a list, in such form as the Guarantee Trustee may reasonably require, of the names and addresses of the Holders of the Securities (“List of Holders”) as of the record date relating to the payment of such
Distributions, and (ii) at any other time, within 30 days of receipt by the Guarantor of a written request from the Guarantee Trustee for a List of Holders as of a date no more than 15 days before such List of Holders is given to the Guarantee
Trustee, excluding from any such list names and addresses received by the Guarantee Trustee in its capacity as Security Registrar; provided that the Guarantor shall not be obligated to provide such List of Holders at any time the List of Holders
does not differ from the most recent List of Holders given to the Guarantee Trustee by the Guarantor. The Guarantee Trustee shall preserve, in as current a form as is reasonably practicable, all information contained in Lists of Holders given to it,
provided that the Guarantee Trustee may destroy any List of Holders previously given to it on receipt of a new List of Holders. 
 
(b) The Guarantee Trustee shall comply with its obligations under Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

 
SECTION 2.3 REPORTS BY GUARANTEE TRUSTEE. Within
60 days after September 15 of each year (commencing with the year of the initial issuance of the Securities), the Guarantee Trustee shall provide to the Holders of the Securities such reports as are required by Section 313(a) of the Trust Indenture
Act (if any) in the form and in the manner provided by Section 313 of the Trust Indenture Act. The Guarantee Trustee shall also comply with the other requirements of Section 313 of the Trust Indenture Act. The Guarantor shall promptly notify the
Guarantee Trustee when the Securities are listed on any stock exchange or quotation system. 
 

6 

 
SECTION 2.4
PERIODIC REPORTS TO GUARANTEE TRUSTEE. The Guarantor shall provide to the Guarantee Trustee such documents, reports and information as required by Section 314(a) (if any) of the Trust Indenture Act and the compliance certificate required by Section
314(a)(4) of the Trust Indenture Act in the form, in the manner and at the times required by Section 314(a) of the Trust Indenture Act, provided that such compliance certificate shall be delivered on or before 120 days after the end of each calendar
year of the Guarantor. 
 
SECTION 2.5 EVIDENCE OF
COMPLIANCE WITH CONDITIONS PRECEDENT. The Guarantor shall provide to the Guarantee Trustee such evidence of compliance with any conditions precedent, if any, provided for in this Guarantee that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) may be given in the form of an Officers’ Certificate. 
 
SECTION 2.6 GUARANTEE EVENT OF DEFAULT; WAIVER. The Holders of a Majority in Liquidation Amount of the Trust
Preferred Securities may, by vote or written consent, on behalf of the Holders of all of the Trust Preferred Securities, waive any past Guarantee Event of Default and its consequences. Upon such waiver, any such Guarantee Event of Default shall
cease to exist, and any Guarantee Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Guarantee, but no such waiver shall extend to any subsequent or other default or Guarantee Event of Default or impair
any right consequent thereon. 
 
SECTION 2.7
GUARANTEE EVENT OF DEFAULT; NOTICE. 
 
(a) The
Guarantee Trustee shall, within 90 days after the occurrence of a Guarantee Event of Default actually known to a Responsible Officer of the Guarantee Trustee, transmit by mail, first class postage prepaid, to the Holders of the Securities, notices
of all such Guarantee Events of Default, unless such defaults have been cured before the giving of such notice; provided, that the Guarantee Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the
Guarantee Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Securities. 
 
(b) The Guarantee Trustee shall not be deemed to have knowledge of any Guarantee Event of Default unless the Guarantee Trustee shall have
received written notice thereof from the Guarantor or a Holder or a Responsible Officer of the Guarantee Trustee charged with the administration of this Guarantee shall have obtained actual knowledge thereof. 
 
SECTION 2.8 CONFLICTING INTERESTS. [INTENTIONALLY OMITTED][The
Amended and Restated Trust Agreements of CSX Capital Trust I dated as of __________ __, 200_ respectively, among the Sponsor, JP Morgan Chase Bank, as Property Trustee, Chase Manhattan Bank USA, National Association, as Delaware Trustee, and the
Administrators named therein, and the Trust Preferred Securities 
 

7 

Guarantee Agreements dated as of
                     , 200_ between the Sponsor and JPMorgan Chase Bank, as Guarantee Trustee shall be deemed to be specifically
described in this Trust Agreement for purposes of clause (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act.] 
 
SECTION 2.9 DISCLOSURE OF INFORMATION. The disclosure of information as to the names and addresses of the Holders of the Securities in
accordance with Section 312 of the Trust Indenture Act, regardless of the source from which such information was derived, shall not be deemed to be a violation of any existing law, or any law hereafter enacted which does not specifically refer to
Section 312 of the Trust Indenture Act, nor shall the Guarantee Trustee be held accountable by reason of mailing any material pursuant to a request made under Section 312(b) of the Trust Indenture Act. 
 
SECTION 2.10 GUARANTEE TRUSTEE MAY FILE PROOFS OF CLAIM. Upon
the occurrence of a Guarantee Event of Default, the Guarantee Trustee is hereby authorized to (a) recover judgment, in its own name and as trustee of an express trust, against the Guarantor for the whole amount of any Guarantee Payments remaining
unpaid and (b) file such proofs of claim and other papers or documents as may be necessary or advisable in order to have its claims and those of the Holders of the Securities allowed in any judicial proceedings relative to the Guarantor, its
creditors or its property. 
 
ARTICLE 3

 
POWERS, DUTIES AND RIGHTS OF

GUARANTEE TRUSTEE 
 
SECTION 3.1 POWERS AND DUTIES OF GUARANTEE TRUSTEE. 
 
(a) This Guarantee shall be held by the Guarantee Trustee on behalf of the Trust for the benefit of the
Holders of the Securities, and the Guarantee Trustee shall not transfer this Guarantee to any Person except a Holder of Securities exercising his or her rights pursuant to Section 5.4(b) or to a Successor Guarantee Trustee upon acceptance by such
Successor Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee in and to this Guarantee shall automatically vest in any Successor Guarantee Trustee, and such vesting and
succession of title shall be effective whether or not conveyance documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee. 
 
(b) If a Guarantee Event of Default actually known to a Responsible Officer of the Guarantee Trustee has
occurred and is continuing, the Guarantee Trustee shall be entitled to enforce this Guarantee for the benefit of the Holders of the Securities. 
 
(c) The Guarantee Trustee, before the occurrence of any Guarantee Event of Default and after the curing of all Guarantee Events of Default
that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee, and no implied covenants shall be read into this Guarantee against the Guarantee Trustee. 
 

8 

In case a Guarantee Event of Default has occurred (that has not been cured or waived pursuant to Section
2.6) and is actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such of the rights and powers vested in it by this Guarantee, and use the same degree of care and skill in its exercise thereof, as a
prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
 
(d) No provision of this Guarantee shall be construed to relieve the Guarantee Trustee from liability for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except that: 
 
(i) prior to the occurrence of any Guarantee Event of Default and after the curing or waiving of all such Guarantee Events of Default that may have occurred: 
 
(A) the duties and obligations of the
Guarantee Trustee shall be determined solely by the express provisions of this Guarantee, and the Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Guarantee, and no
implied covenants or obligations shall be read into this Guarantee against the Guarantee Trustee; and 
 
(B) in the absence of bad faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and conforming to the requirements of this Guarantee; but in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Guarantee;

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

 
(iii) the Guarantee Trustee
shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a Majority in Liquidation Amount of the Trust Preferred Securities relating to the time,
method and place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee; and 
 
(iv) no provision of this Guarantee shall
require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in 
 

9 

the performance of any of its duties or in the exercise of any of its rights or powers, if
the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Guarantee or if the Guarantee Trustee shall have reasonable grounds for believing
that an indemnity, reasonably satisfactory to the Guarantee Trustee, against such risk or liability is not reasonably assured to it under the terms of this Guarantee. 
 
SECTION 3.2 CERTAIN RIGHTS OF GUARANTEE TRUSTEE. 
 
(a) Subject to the provisions of Section 3.1: 
 
(i) The Guarantee Trustee may conclusively rely, and shall be fully protected in acting or
refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed, sent or presented by the proper party or parties; 
 
(ii) Any direction or act of the Guarantor contemplated by this Guarantee shall be sufficiently evidenced by an
Officers’ Certificate; 
 
(iii) Whenever, in the administration of this Guarantee, the Guarantee Trustee shall deem it desirable that a matter be proved or established before taking, suffering or omitting any action hereunder, the Guarantee Trustee (unless
other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and conclusively rely upon an Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the Guarantor;

 
(iv) The Guarantee Trustee shall
have no duty to see to any recording, filing or registration or any instrument (or any rerecording, refiling or re-registration thereof); 
 
(v) The Guarantee Trustee may consult with counsel, and the advice or opinion of such counsel with respect to legal
matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion. Such counsel may be counsel to the Guarantor or any of
its Affiliates and may include any of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee from any court of competent jurisdiction; 
 
(vi) The Guarantee Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this Guarantee at the request or direction of any Holder, unless such Holder shall have provided to the Guarantee Trustee such security and indemnity, reasonably satisfactory to the
Guarantee Trustee, against 
 

10 

the costs, expenses (including attorneys’ fees and expenses and the expenses of the
Guarantee Trustee’s agents, nominees or custodians) and liabilities that might be incurred by it in complying with such request or direction, including such reasonable advances as may be requested by the Guarantee Trustee; provided, that
nothing contained in this Section 3.2(a)(vi) shall be taken to relieve the Guarantee Trustee, upon the occurrence of a Guarantee Event of Default, of its obligation to exercise the rights and powers vested in it by this Guarantee in the manner
provided by Section 3.1(c); 
 
(vii) The Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit; 
 
(viii) The Guarantee Trustee may execute any
of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, nominees, custodians or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder; 
 
(ix) Any action taken by the Guarantee Trustee or its agents hereunder shall bind the Holders, and the signature of the Guarantee Trustee or its agents alone shall be sufficient and effective to
perform any such action. No third party shall be required to inquire as to the authority of the Guarantee Trustee to so act or as to its compliance with any of the terms and provisions of this Guarantee, both of which shall be conclusively evidenced
by the Guarantee Trustee’s or its agent’s taking such action; and 
 
(x) Whenever in the administration of this Guarantee, the Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action
hereunder, the Guarantee Trustee (A) may request written instructions from the Holders of a Majority in Liquidation Amount of the Securities, (B) may refrain from enforcing such remedy or right or taking such other action until such written
instructions are received and (C) shall be protected in conclusively relying on or acting in accordance with such written instructions. 
 
(b) No provision of this Guarantee shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the Guarantee Trustee shall be unqualified or incompetent to act in accordance with applicable law, to perform any
such act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be construed to be a duty. 
 

11 

 
SECTION 3.3
NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE. The recitals contained in this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility for their correctness. The Guarantee
Trustee makes no representations as to the validity or sufficiency of this Guarantee. 
 
ARTICLE 4 
 
GUARANTEE TRUSTEE 
 
SECTION
4.1 GUARANTEE TRUSTEE; ELIGIBILITY. 
 
(a) There
shall be at all times a Guarantee Trustee which shall: 
 
(i) not be an Affiliate of the Guarantor; and 
 
(ii) be a corporation organized and doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia, or a corporation or other Person
permitted by the Securities and Exchange Commission to act as an institutional trustee under the Trust Indenture Act, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S.
dollars ($50,000,000), and subject to supervision or examination by federal, state, territorial or District of Columbia authority. If such corporation 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 4.1(a)(ii), the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. 
 
(b) If at any
time the Guarantee Trustee shall cease to be eligible to so act under Section 4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in Section 4.2(c). 
 
(c) If the Guarantee Trustee has or shall acquire any
“conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act, subject to the
penultimate paragraph thereof. 
 

12 

 
SECTION 4.2
APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE TRUSTEE. 
 
(a) Subject to Section 4.2(b), unless a Guarantee Event of Default shall have occurred and be continuing, the Guarantee Trustee may be appointed or removed with or without cause at any time by the Guarantor. If a Guarantee Event of
Default has occurred and is continuing, the Guarantee Trustee may be appointed or removed by the Holders of a Majority in Liquidation Amount of the Trust Preferred Securities. 
 
(b) The Guarantee Trustee shall not be removed in accordance with Section 4.2(a) until a Successor Guarantee
Trustee has been appointed and has accepted such appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor. 
 
(c) The Guarantee Trustee appointed to office shall hold such office until a Successor Guarantee Trustee shall have been appointed or
until its removal or resignation. The Guarantee Trustee may resign from office (without need for prior or subsequent accounting) by an instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation shall
not take effect until a Successor Guarantee Trustee has been appointed and has accepted such appointment by instrument in writing executed by such Successor Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee Trustee.

 
(d) If no Successor Guarantee Trustee shall have
been appointed and accepted appointment as provided in this Section 4.2 within 60 days after delivery to the Guarantor of an instrument of removal or resignation, the removed or resigning Guarantee Trustee may petition any court of competent
jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee. 
 
(e) No Guarantee Trustee shall be liable for the acts or
omissions to act of any Successor Guarantee Trustee. 
 
(f) Upon termination of this Guarantee or removal or resignation of the Guarantee Trustee pursuant to this Section 4.2, the Guarantor shall pay to the Guarantee Trustee all amounts owing for fees and reimbursement of expenses which
have accrued to the date of such termination, removal or resignation. 
 

13 

 
ARTICLE 5

 
GUARANTEE 
 
SECTION 5.1 GUARANTEE. 
 
The Guarantor irrevocably and unconditionally agrees to pay in
full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the Trust may have or assert. The Guarantor’s
obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Trust to pay such amounts to the Holders. Notwithstanding anything to the contrary herein, the
Guarantor retains all of its rights under the Indenture to extend the interest payment period on the Subordinated Debentures pursuant to Section      of the
                 Supplemental Indenture and the Guarantor shall not be obligated hereunder to make any Guarantee Payments during any Extension Period (as defined
in the certificate evidencing the Subordinated Debentures) with respect to the Distributions (as defined in the Trust Agreement) on the Securities. 
 
SECTION 5.2 WAIVER OF NOTICE AND DEMAND. 
 
The Guarantor hereby waives notice of acceptance of this Guarantee and of any liability to which it applies or may apply, presentment,
demand for payment, any right to require a proceeding first against the Trust or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other notices and demands.

 
SECTION 5.3 OBLIGATIONS NOT AFFECTED.

 
The obligations, covenants, agreements and
duties of the Guarantor under this Guarantee shall be absolute and unconditional and shall remain in full force and effect until the entire liquidation amount of all outstanding Securities shall have been paid and such obligation shall in no way be
affected or impaired by reason of the happening from time to time of any event, including without limitation, the following, whether or not with notice to, or the consent of, the Guarantor: 
 
(a) The release or waiver, by operation of law or otherwise,
of the performance or observance by the Trust of any express or implied agreement, covenant, term or condition relating to the Securities to be performed or observed by the Trust; 
 
(b) The extension of time for the payment by the Trust of all or any portion of the Distributions, Redemption
Price, Liquidation Distribution or any other sums payable under the terms of the Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection with the Securities (other than an extension of
time for payment of Distributions, Redemption Price, Liquidation 
 

14 

Distribution or other sum payable that results from the extension of any interest payment period on the
Subordinated Debentures permitted by the Indenture); 
 
(c) Any failure, omission, delay or lack of diligence on the part of the Property Trustee or the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the Property Trustee or the Holders pursuant
to the terms of the Securities, or any action on the part of the Trust granting indulgence or extension of any kind; 
 
(d) The voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency, bankruptcy, assignment for
the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Trust or any of the assets of the Trust; 
 
(e) Any invalidity of, or defect or deficiency in, the Securities; 
 
(f) The settlement or compromise of any obligation guaranteed
hereby or hereby incurred; or 
 
(g) Any other
circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any
and all circumstances. 
 
There shall be no
obligation of the Guarantee Trustee or the Holders to give notice to, or obtain consent of the Guarantor or any other Person with respect to the happening of any of the foregoing. 
 
No setoff, counterclaim, reduction or diminution of any obligation, or any defense of any kind or nature that
the Guarantor has or may have against any Holder shall be available hereunder to the Guarantor against such Holder to reduce the payments to it under this Guarantee. 
 
SECTION 5.4 RIGHTS OF HOLDERS. 
 
(a) The Holders of at least a Majority in Liquidation Amount of the Trust Preferred Securities have the right
to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee or to direct the exercise of any trust or power conferred upon the Guarantee Trustee under this
Guarantee, provided, that, subject to Section 3.1, the Guarantee Trustee shall have the right to decline to follow any such direction if the Guarantee Trustee shall determine that the action so directed would be unjustly prejudicial to the Holders
not taking part in such direction or if the Guarantee Trustee being advised by counsel determines that the action or proceeding so directed may not lawfully be taken or if the Guarantee Trustee in good faith by its board of directors or trustees,
executive committee, or a trust committee of directors or trustees and/or Responsible Officers of the 
 

15 

 
Guarantee Trustee shall
determine that the action or proceedings so directed would involve the Guarantee Trustee in personal liability. 
 
(b) If the Guarantee Trustee fails to enforce this Guarantee, then any Holder of Securities may, subject to the subordination provisions
of Section 6.2, institute a legal proceeding directly against the Guarantor to enforce the Guarantee Trustee’s rights under this Guarantee without first instituting a legal proceeding against the Trust, the Guarantee Trustee or any other person
or entity. In addition, if the Guarantor has failed to make a Guarantee Payment, a Holder of Securities may, subject to the subordination provisions of Section 6.2, directly institute a proceeding against the Guarantor for enforcement of the
Guarantee for such payment to the Holder of the Securities of the principal of or interest on the Subordinated Debentures on or after the respective due dates specified in the Subordinated Debentures, and the amount of the payment will be based on
the Holder’s pro rata share of the amount due and owing on all of the Securities. The Guarantor hereby waives any right or remedy to require that any action on this Guarantee be brought first against the Trust or any other person or entity
before proceeding directly against the Guarantor. 
 
SECTION 5.5 GUARANTEE OF PAYMENT. 
 
This Guarantee creates a guarantee of payment and not of collection. 
 
SECTION 5.6 SUBROGATION. 
 
The Guarantor shall be subrogated to all (if any) rights of the Holders of Trust Preferred Securities against the Trust in respect of any amounts paid to such Holders by the Guarantor under this Guarantee; provided, however,
that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a
result of payment under this Guarantee, if at the time of any such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such
amount in trust for the Holders and to pay over such amount to the Guarantee Trustee for the benefit of the Holders. 
 
SECTION 5.7 INDEPENDENT OBLIGATIONS. 
 
The Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Trust with respect to the Securities,
and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee notwithstanding the occurrence of any event referred to in subsections 5.3(a) through 5.3(g), inclusive,
hereof. 
 

16 

 
ARTICLE 6

 
LIMITATION OF TRANSACTIONS; SUBORDINATION

 
SECTION 6.1 LIMITATION OF TRANSACTIONS.

 
So long as any Securities remain outstanding, if
(i) there shall have occurred an event of default under the Indenture with respect to the Subordinated Debentures, (ii) there shall be a Guarantee Event of Default or (iii) the Guarantor shall have given notice of its election of an Extension Period
as provided in the certificate evidencing the Subordinated Debentures and shall not have rescinded such notice, or such Extension Period or any extension thereof shall be continuing, then the Guarantor shall not, and shall not permit any subsidiary
of the Guarantor, to (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Guarantor’s capital stock or (y) make any payment of principal, interest or
premium, if any, on or repay, repurchase or redeem any debt securities of the Guarantor that rank on a parity with or junior in interest to the Subordinated Debentures or make any guarantee payments with respect to any guarantee by the Guarantor of
the debt securities of any subsidiary of the Guarantor if such guarantee ranks on a parity with or junior in interest to the Subordinated Debentures (other than (a) dividends or distributions in common stock of the Guarantor, (b) any declaration of
a dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto, (c) payments under this Guarantee,
and (d) purchases of common stock related to the issuance of common stock or rights under any of the Guarantor’s benefit plans). 
 
SECTION 6.2 RANKING. 
 
This Guarantee will constitute an unsecured obligation of the Guarantor and will rank subordinate and junior in right of payment to all
Senior Indebtedness of the Company (as defined in the Indenture) of the Guarantor in the same manner and to the same extent as set forth in Article XVI of the Indenture. 
 
SECTION 6.3 SUBORDINATION OF COMMON SECURITIES. 
 
If a Trust Enforcement Event has occurred and is continuing under the Trust Agreement, the rights of the
holders of the Common Securities to receive Guarantee Payments hereunder shall be subordinated to the rights of the Holders of the Trust Preferred Securities to receive Guarantee Payments under this Guarantee. 
 

17 

 
ARTICLE 7

 
TERMINATION 
 
SECTION 7.1 TERMINATION. 
 
This Guarantee shall terminate upon (i) full payment of the
Redemption Price of all Securities, (ii) distribution of the Subordinated Debentures to the Holders of all the Securities or (iii) full payment of the amounts payable in accordance with the Trust Agreement upon liquidation of the Trust.
Notwithstanding the foregoing, this Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder of Securities must restore payment of any sums paid under the Securities or under this Guarantee.

 
ARTICLE 8 
 
INDEMNIFICATION 
 
SECTION 8.1 EXCULPATION. 
 
(a) No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Guarantor or any Covered Person for any loss, damage, liability, expense or claim incurred by reason of any act or omission performed or omitted by such Indemnified Person in good faith in accordance with
this Guarantee and in a manner that such Indemnified Person reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Guarantee or by law, except that an Indemnified Person shall be liable for any such
loss, damage or claim incurred by reason of such Indemnified Person’s negligence or willful misconduct with respect to such acts or omissions. 
 
(b) An Indemnified Person shall be fully protected in relying in good faith upon the records of the Guarantor and upon such information,
opinions, reports or statements presented to the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from which Distributions to Holders of Securities might properly be paid. 
 
SECTION 8.2 COMPENSATION, EXPENSES AND INDEMNIFICATION.

 
(a) The Guarantor agrees to pay to the Guarantee
Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) and to reimburse the
Guarantee Trustee upon request for all reasonable expenses, disbursements and advances (including the reasonable fees and expenses of its 
 

18 

attorneys and agents) incurred or made by the Guarantee Trustee in accordance with any provision of this
Guarantee. 
 
(b) The Guarantor agrees to indemnify
each Indemnified Person for, and to hold each Indemnified Person harmless against any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust
or trusts hereunder, including the costs and expenses (including reasonable legal fees and expenses) of defending itself against, or investigating, any claim or liability in connection with the exercise or performance of any of its powers or duties
hereunder. 
 
(c) The obligations of the Guarantor
under this Section 8.2 shall survive the termination of this Guarantee. 
 
ARTICLE 9 
 
MISCELLANEOUS 
 
SECTION 9.1
SUCCESSORS AND ASSIGNS. 
 
All guarantees and
agreements contained in this Guarantee shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Securities then outstanding. Except in connection with a
consolidation, merger, sale or conveyance involving the Guarantor that is permitted by Article XI of the Indenture and pursuant to which the successor or assignee agrees in writing to perform the Guarantor’s obligations hereunder, the Guarantor
shall not assign its obligations hereunder. 
 
SECTION 9.2 AMENDMENTS. 
 
Except
with respect to any changes that do not materially adversely affect the rights of the Holders (in which case no consent of the Holders will be required), this Guarantee may not be amended without the prior approval of the Holders of at least a
Majority in Liquidation Amount of the Trust Preferred Securities. The provisions of Section 11.2 of the Trust Agreement with respect to meetings of, and action by written consent of, the Holders of the Securities apply to the giving of such
approval. 
 
SECTION 9.3 NOTICES. 
 
All notices provided for in this Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered by hand, telecopied or mailed by registered or certified mail, as follows: 
 

19 

 
(a) If given
to the Guarantee Trustee, at the Guarantee Trustee’s mailing address set forth below (or such other address as the Guarantee Trustee may give notice of to the Guarantor and the Holders of the Securities): 
 
JPMorgan Chase Bank 
450 West 33rd Street 
New York, New York 10001 
Attention: Institutional Trust Services 
Fax: (212) 946-8159/60 
 
(b) If given to the Guarantor, at the Guarantor’s mailing addresses set forth below (or such other address as the Guarantor may give
notice of to the Guarantee Trustee and the Holders of the Securities): 
 
CSX Corporation 
500 Water Street, 15th Floor 
Jacksonville, Florida 32202 
Telecopy No.: (904) 
 
(c) If given to any Holder of Securities, 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 registered or
certified 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 9.4 BENEFIT. 
 
This
Guarantee is solely for the benefit of the Holders of the Securities and, subject to Section 3.1(a), is not separately transferable from the Securities. 
 
SECTION 9.5 GOVERNING LAW. 
 
THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
ITS CONFLICT OF LAWS PRINCIPLES. 
 

20 

 
IN WITNESS
WHEREOF, this Guarantee is executed as of the day and year first above written. 
 

	
	 CSX CORPORATION,

	 as Guarantor

	
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 JPMORGAN CHASE BANK,

	 as Guarantee Trustee

	
	 By:
	 	  

	 Name:

	 Title:

 

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]