Document:

JUNIOR SUBORDINATED INDENTURE

                                     BETWEEN

                     PEOPLES BANCORP OF NORTH CAROLINA, INC.

                                       AND

                            WILMINGTON TRUST COMPANY
                                  (AS TRUSTEE)

                          DATED AS OF DECEMBER 19, 2001

<PAGE>
                              PEBK CAPITAL TRUST I
         Certain Sections of this Junior Subordinated Indenture relating
                       to Sections 310 through 318 of the
                          Trust Indenture Act of 1939:

Trust Indenture                                             Junior Subordinated
Act Section                                                   Indenture Section
-----------                                                   -----------------

Section 310    (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9
               (a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9
               (a)(3) . . . . . . . . . . . . . . . . . . . .   Not  Applicable
               (a)(4) . . . . . . . . . . . . . . . . . . . .   Not  Applicable
               (a)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9
               (b). . . . . . . . . . . . . . . . . . . . . . . . . .6.8,  6.10
Section 311    (a). . . . . . . . . . . . . . . . . . . . . . . . . . . .  6.13
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . . .  6.13
               (b)(2) . . . . . . . . . . . . . . . . . . . . . . . . . .7.3(a)
Section 312    (a). . . . . . . . . . . . . . . . . . . . . . . . . 7.1, 7.2(a)
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . . .7.2(b)
               (c). . . . . . . . . . . . . . . . . . . . . . . . . . . .7.2(c)
Section 313    (a). . . . . . . . . . . . . . . . . . . . . . . . . . . .7.3(a)
               (a)(4) . . . . . . . . . . . . . . . . . . . . . . . . . .7.3(a)
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . . .7.3(b)
               (c). . . . . . . . . . . . . . . . . . . . . . . . . . . .7.3(a)
               (d). . . . . . . . . . . . . . . . . . . . . . . . . . . .7.3(c)
Section 314    (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4
               (c)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2
               (c)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2
               (c)(3) . . . . . . . . . . . . . . . . . . . .   Not  Applicable
               (e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2
Section 315    (a). . . . . . . . . . . . . . . . . . . . . . . . . . . .6.1(a)
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . 6.2,  7.3
               (c). . . . . . . . . . . . . . . . . . . . . . . . . . . .6.1(b)
               (d). . . . . . . . . . . . . . . . . . . . . . . . . . . .6.1(c)
               (e). . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.14
Section 316    (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.12
               (a)(1)(A). . . . . . . . . . . . . . . . . . . . . . . . . .5.12
               (a)(1)(B). . . . . . . . . . . . . . . . . . . . . . . . . .5.13
               (a)(2) . . . . . . . . . . . . . . . . . . . .   Not  Applicable
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8
               (c). . . . . . . . . . . . . . . . . . . . . . . . . . . .1.4(f)

                                       -i-
<PAGE>
Section 317    (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3
               (a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4
               (b). . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.3
Section 318    (a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7

Note:               This  reconciliation  and tie shall not, for any purpose, be
                    deemed  to  be  a  part  of  the  Indenture.

                                      -ii-
<PAGE>
                                TABLE OF CONTENTS
                                -----------------

ARTICLE I        DEFINITIONS AND OTHER PROVISIONS OF GENERAL
                 APPLICATION . . . . . . . . . . . . . . . . . . . . . . . .   1

SECTION 1.1.     Definitions . . . . . . . . . . . . . . . . . . . . . . . .   1
SECTION 1.2.     Compliance Certificate and Opinions . . . . . . . . . . . .  12
SECTION 1.3.     Forms of Documents Delivered to Trustee . . . . . . . . . .  12
SECTION 1.4.     Acts of Holders . . . . . . . . . . . . . . . . . . . . . .  13
SECTION 1.5.     Notices, Etc. to Trustee and Company. . . . . . . . . . . .  15
SECTION 1.6.     Notice to Holders; Waiver . . . . . . . . . . . . . . . . .  16
SECTION 1.7.     Conflict with Trust Indenture Act . . . . . . . . . . . . .  16
SECTION 1.8.     Effect of Headings and Table of Contents. . . . . . . . . .  16
SECTION 1.9.     Successors and Assigns. . . . . . . . . . . . . . . . . . .  16
SECTION 1.10.    Separability Clause . . . . . . . . . . . . . . . . . . . .  16
SECTION 1.11.    Benefits of Indenture . . . . . . . . . . . . . . . . . . .  17
SECTION 1.12.    Governing Law . . . . . . . . . . . . . . . . . . . . . . .  17
SECTION 1.13.    Non-Business Days . . . . . . . . . . . . . . . . . . . . .  17

ARTICLE II       SECURITY FORMS. . . . . . . . . . . . . . . . . . . . . . .  17

SECTION 2.1.     Forms Generally . . . . . . . . . . . . . . . . . . . . . .  17
SECTION 2.2.     Form of Face of Security. . . . . . . . . . . . . . . . . .  18
SECTION 2.3.     Additional Provisions Required in Global Security . . . . .  18
SECTION 2.4.     Form of Trustee's Certificate of Authentication . . . . . .  19

ARTICLE III      THE SECURITIES. . . . . . . . . . . . . . . . . . . . . . .  19

SECTION 3.1.     Title and Terms . . . . . . . . . . . . . . . . . . . . . .  19
SECTION 3.2.     Denominations . . . . . . . . . . . . . . . . . . . . . . .  22
SECTION 3.3.     Execution, Authentication, Delivery and Dating. . . . . . .  22
SECTION 3.4.     Temporary Securities. . . . . . . . . . . . . . . . . . . .  24
SECTION 3.5.     Global Securities . . . . . . . . . . . . . . . . . . . . .  24
SECTION 3.6.     Registration, Transfer and Exchange Generally; Certain
                 Transfers and Exchanges . . . . . . . . . . . . . . . . . .  26
SECTION 3.7.     Mutilated, Lost and Stolen Securities . . . . . . . . . . .  28
SECTION 3.8.     Payment of Interest and Additional Interest; Interest
                 Rights Preserved. . . . . . . . . . . . . . . . . . . . . .  29
SECTION 3.9.     Persons Deemed Owners . . . . . . . . . . . . . . . . . . .  30
SECTION 3.10.    Cancellation. . . . . . . . . . . . . . . . . . . . . . . .  31
SECTION 3.11.    Computation of Interest . . . . . . . . . . . . . . . . . .  31
SECTION 3.12.    Deferrals of Interest Payment Dates . . . . . . . . . . . .  31
SECTION 3.13.    Right of Set-Off. . . . . . . . . . . . . . . . . . . . . .  33

                                     -iii-
<PAGE>
SECTION 3.14.    Agreed Tax Treatment. . . . . . . . . . . . . . . . . . . .  33
SECTION 3.15.    Shortening or Extension of Stated Maturity. . . . . . . . .  33
SECTION 3.16.    CUSIP Numbers . . . . . . . . . . . . . . . . . . . . . . .  33

ARTICLE IV       SATISFACTION AND DISCHARGE. . . . . . . . . . . . . . . . .  34

SECTION 4.1.     Satisfaction and Discharge of Indenture . . . . . . . . . .  34
SECTION 4.2      Application of Trust Money. . . . . . . . . . . . . . . . .  35

ARTICLE V        REMEDIES. . . . . . . . . . . . . . . . . . . . . . . . . .  35

SECTION 5.1.     Events of Default . . . . . . . . . . . . . . . . . . . . .  35
SECTION 5.2.     Acceleration of Maturity; Rescission and Annulment. . . . .  37
SECTION 5.3.     Collection of Indebtedness and Suits for Enforcement
                 by Trustee. . . . . . . . . . . . . . . . . . . . . . . . .  38
SECTION 5.4.     Trustee May File Proofs of Claim. . . . . . . . . . . . . .  39
SECTION 5.5.     Trustee May Enforce Claim Without Possession of Securities.  40
SECTION 5.6      Application of Money Collected. . . . . . . . . . . . . . .  40
SECTION 5.7      Limitation on Suits . . . . . . . . . . . . . . . . . . . .  40
SECTION 5.8.     Unconditional Right of Holders to Receive Principal,
                 Premium and Interest; Direct Action by
                 Holders of Capital Securities . . . . . . . . . . . . . . .  41
SECTION 5.9.     Restoration of Rights and Remedies. . . . . . . . . . . . .  42
SECTION 5.10.    Rights and Remedies Cumulative. . . . . . . . . . . . . . .  42
SECTION 5.11.    Delay or Omission Not Waiver. . . . . . . . . . . . . . . .  42
SECTION 5.12.    Control by Holders. . . . . . . . . . . . . . . . . . . . .  43
SECTION 5.13.    Waiver of Past Defaults . . . . . . . . . . . . . . . . . .  43
SECTION 5.14.    Undertaking for Costs . . . . . . . . . . . . . . . . . . .  44
SECTION 5.15.    Waiver of Usury, Stay or Extension Laws . . . . . . . . . .  44

ARTICLE VI       THE TRUSTEE . . . . . . . . . . . . . . . . . . . . . . . .  44

SECTION 6.1.     Certain Duties and Responsibilities . . . . . . . . . . . .  44
SECTION 6.2.     Notice of Defaults. . . . . . . . . . . . . . . . . . . . .  46
SECTION 6.3.     Certain Rights of Trustee . . . . . . . . . . . . . . . . .  46
SECTION 6.4.     Not Responsible for Recitals or Issuance of Securities. . .  47
SECTION 6.5.     May Hold Securities . . . . . . . . . . . . . . . . . . . .  47
SECTION 6.6.     Money Held in Trust . . . . . . . . . . . . . . . . . . . .  47
SECTION 6.7.     Compensation and Reimbursement. . . . . . . . . . . . . . .  47
SECTION 6.8.     Disqualification; Conflicting Interests . . . . . . . . . .  49
SECTION 6.9.     Corporate Trustee Required; Eligibility . . . . . . . . . .  49
SECTION 6.10.    Resignation and Removal; Appointment of Successor . . . . .  50
SECTION 6.11.    Acceptance of Appointment by Successor. . . . . . . . . . .  51
SECTION 6.12.    Merger, Conversion, Consolidation or Succession to Business  52
SECTION 6.13.    Preferential Collection of Claims Against Company . . . . .  52

                                      -iv-
<PAGE>
SECTION 6.14.    Appointment of Authenticating Agent . . . . . . . . . . . .  53

ARTICLE VII      HOLDER'S LISTS AND REPORTS BY TRUSTEE, PAYING AGENT AND
                 COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . .  54

SECTION 7.1.     Company to Furnish Trustee Names and Addresses of Holders .  54
SECTION 7.2.     Preservation of Information; Communications to Holders. . .  55
SECTION 7.3.     Reports by Trustee and Paying Agent . . . . . . . . . . . .  55
SECTION 7.4.     Reports by Company. . . . . . . . . . . . . . . . . . . . .  56

ARTICLE VIII     CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE. . . .  56

SECTION 8.1.     Company May Consolidate, Etc., Only on Certain Terms. . . .  56
SECTION 8.2.     Successor Company Substituted . . . . . . . . . . . . . . .  57

ARTICLE IX       SUPPLEMENTAL INDENTURES . . . . . . . . . . . . . . . . . .  58

SECTION 9.1.     Supplemental Indentures Without Consent of Holders. . . . .  58
SECTION 9.2.     Supplemental Indentures with Consent of Holders . . . . . .  59
SECTION 9.3.     Execution of Supplemental Indentures. . . . . . . . . . . .  60
SECTION 9.4.     Effect of Supplemental Indentures . . . . . . . . . . . . .  61
SECTION 9.5.     Conformity with Trust Indenture Act . . . . . . . . . . . .  61
SECTION 9.6.     Reference in Securities to Supplemental Indentures. . . . .  61

ARTICLE X        COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . .  61

SECTION 10.1.    Payment of Principal, Premium and Interest. . . . . . . . .  61
SECTION 10.2.    Maintenance of Office or Agency . . . . . . . . . . . . . .  61
SECTION 10.3.    Money for Security Payments to be Held in Trust . . . . . .  62
SECTION 10.4.    Statement as to Compliance. . . . . . . . . . . . . . . . .  63
SECTION 10.5.    Waiver of Certain Covenants . . . . . . . . . . . . . . . .  64
SECTION 10.6.    Additional Sums . . . . . . . . . . . . . . . . . . . . . .  64
SECTION 10.7.    Additional Covenants. . . . . . . . . . . . . . . . . . . .  65
SECTION 10.8.    Furnishing Annual Information . . . . . . . . . . . . . . .  66

ARTICLE XI       REDEMPTION OF SECURITIES. . . . . . . . . . . . . . . . . .  66

SECTION 11.1.    Applicability of This Article . . . . . . . . . . . . . . .  66
SECTION 11.2.    Election to Redeem; Notice to Trustee . . . . . . . . . . .  66
SECTION 11.3.    Selection of Securities to be Redeemed. . . . . . . . . . .  67
SECTION 11.4.    Notice of Redemption. . . . . . . . . . . . . . . . . . . .  67
SECTION 11.5.    Deposit of Redemption Price . . . . . . . . . . . . . . . .  68
SECTION 11.6.    Payment of Securities Called for Redemption . . . . . . . .  68

                                       -v-
<PAGE>
SECTION 11.7.    Right of Redemption of Securities Initially Issued to an
                 Issuer Trust. . . . . . . . . . . . . . . . . . . . . . . .  69

ARTICLE XII      SINKING FUNDS . . . . . . . . . . . . . . . . . . . . . . .  70

ARTICLE XIII     SUBORDINATION OF SECURITIES . . . . . . . . . . . . . . . .  70

SECTION 13.1.    Securities Subordinate to Senior Indebtedness . . . . . . .  70
SECTION 13.2.    No Payment When Senior Indebtedness in Default; Payment
                 Over of Proceeds Upon Dissolution, Etc. . . . . . . . . . .  70
SECTION 13.3.    Payment Permitted If No Default . . . . . . . . . . . . . .  72
SECTION 13.4.    Subrogation to Rights of Holders of Senior Indebtedness;
                 Etc . . . . . . . . . . . . . . . . . . . . . . . . . . . .  72
SECTION 13.5.    Provisions Solely to Define Relative Rights . . . . . . . .  73
SECTION 13.6.    Trustee to Effectuate Subordination . . . . . . . . . . . .  73
SECTION 13.7.    No Waiver of Subordination Provisions . . . . . . . . . . .  74
SECTION 13.8.    Notice to Trustee . . . . . . . . . . . . . . . . . . . . .  74
SECTION 13.9.    Reliance on Judicial Order or Certificate of Liquidating
                 Agent . . . . . . . . . . . . . . . . . . . . . . . . . . .  75
SECTION 13.10.   Trustee Not Fiduciary for Holders of Senior Indebtedness. .  75
SECTION 13.11.   Rights of Trustee as Holder of Senior Indebtedness;
                 Preservation of Trustee's Rights. . . . . . . . . . . . . .  75
SECTION 13.12.   Article Applicable to Paying Agents . . . . . . . . . . . .  76
SECTION 13.13.   Certain Conversions or Exchanges Deemed Payment . . . . . .  76

                                      -vi-
<PAGE>
                          JUNIOR SUBORDINATED INDENTURE

     THIS JUNIOR SUBORDINATED INDENTURE, dated as of December 19, 2001, is
between PEOPLES BANCORP OF NORTH CAROLINA, INC., a North Carolina corporation
(the "Company"), having its principal office at 518 West C Street, Newton, North
      -------
Carolina 28658, and WILMINGTON TRUST COMPANY, as Trustee, having its principal
office at 1100 North Market Street, Wilmington, Delaware 19890-0001 (the
"Trustee").
 --------

                             RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured junior
subordinated debt securities in one or more series (hereinafter called the
"Securities") of substantially the tenor hereinafter provided, including
 ----------
Securities issued to evidence loans made to the Company from the proceeds from
the issuance from time to time by one or more business trusts (each an "Issuer
                                                                        ------
Trust") of undivided preferred beneficial interests in the assets of such Issuer
-----
Trusts (the "Capital Securities") and undivided common interests in the assets
             ------------------
of such Issuer Trusts (the "Common Securities" and, collectively with the
                            -----------------
Capital Securities, the "Trust Securities"), and to provide the terms and
                         ----------------
conditions upon which the Securities are to be authenticated, issued and
delivered; and

     All  things  necessary  to  make  this  Indenture  a valid agreement of the
Company,  in  accordance  with  its  terms,  have  been  done.

     NOW  THEREFORE,  THIS  INDENTURE  WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities
by  the  Holders  (as  such  term is defined in Section 1.1 hereof) thereof, the
parties  hereto, intending to be legally bound, mutually covenant and agree, for
the  equal  and proportionate benefit of all Holders of the Securities or of any
series  thereof,  as  follows:

                                    ARTICLE I
                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION  1.1.     DEFINITIONS.

     For  all purposes of this Indenture, except as otherwise expressly provided
or  unless  the  context  otherwise  requires:

                                      -1-
<PAGE>
     (1)     The  terms  defined  in  this Article have the meanings assigned to
them  in  this  Article,  and  include  the  plural  as  well  as  the singular;

     (2)     All other terms used herein that are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;

     (3)     The  words "include," "includes" and "including" shall be deemed to
be  followed  by  the  phrase  "without  limitation";

     (4)     All accounting terms not otherwise defined herein have the meanings
assigned  to them in accordance with generally accepted accounting principles as
in  effect  at  the  time  of  determination;

     (5)     Whenever  the  context  may  require, any gender shall be deemed to
include  the  other;

     (6)     Unless  the  context  otherwise  requires,  any  reference  to  an
"Article"  or a "Section" refers to an Article or a Section, as the case may be,
of  this  Indenture;  and

     (7)     The  words  "hereby,"  "herein," "hereof" and "hereunder" and other
words  of  similar  import  refer  to  this  Indenture as a whole and not to any
particular  Article,  Section  or  other  subdivision.

     "Act"  when  used  with  respect to any Holder has the meaning specified in
Section  1.4(a).

     "Additional  Interest" means the interest, if any, that shall accrue on any
interest  on the Securities of any series the payment of which has not been made
on  the  applicable Interest Payment Date and which shall accrue at the rate per
annum  specified  or  determined  as  specified  in such Security, to the extent
permitted  by  applicable  law.

     "Additional  Sums"  has  the  meaning  specified  in  Section  10.6.

     "Additional  Taxes"  means  any  additional  taxes,  duties  and  other
governmental  charges  to  which an Issuer Trust has become subject from time to
time  as  a  result  of  a  Tax  Event.

     "Administrator"  means,  in  respect  of  any  Issuer  Trust,  each  Person
appointed  in  accordance  with  the  related  Trust  Agreement,  solely in such
Person's capacity as Administrator of such Issuer Trust and not in such Person's
individual  capacity,  or  any  successor  Administrator  appointed  as  therein
provided.

     "Affiliate"  of  any  specified  Person  means any other Person directly or
indirectly  controlling  or  controlled  by  or  under direct or indirect common
control  with  such  specified  Person.  For  the  purposes  of this definition,
"control"  when  used  with  respect  to any specified Person means the power to
direct  the  management  and  policies  of  such Person, directly or indirectly,

                                      -2-
<PAGE>
whether  through  the  ownership of voting securities, by contract or otherwise;
and  the  terms  "controlling" and "controlled" have meanings correlative to the
foregoing.

     "Agent  Member"  means  any  member  of, or participant in, the Depositary.

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

     "Authenticating  Agent" means any Person authorized by the Trustee pursuant
to  Section  6.14  to act on behalf of the Trustee to authenticate Securities of
one  or  more  series.

     "Bankruptcy  Code"  means the United States Bankruptcy Code, 11 U.S.C. 101,
et  seq.  as  amended,  and  any  successor  provisions  thereto.

     "Board  of  Directors"  means  the board of directors of the Company or the
Executive  Committee  of  the  board  of  directors of the Company (or any other
committee of the board of directors of the Company performing similar functions)
or,  for  purposes  of  this  Indenture,  a committee designated by the board of
directors  of  the Company (or such committee), comprised of two or more members
of  the  board  of directors of the Company or officers of the Company, or both.

     "Board  Resolution" means a copy of a resolution certified by the Secretary
or any Assistant Secretary of the Company to have been duly adopted by the Board
of  Directors,  or  such  committee of the Board of Directors or officers of the
Company  to  which authority to act on behalf of the Board of Directors has been
delegated, and to be in full force and effect on the date of such certification,
and  delivered  to  the  Trustee.

     "Business  Day"  means  any day other than (i) a Saturday or Sunday, (ii) a
day on which banking institutions in the City of New York, New York, the City of
Newton,  North  Carolina  or  the City of Wilmington, Delaware are authorized or
required by law or executive order to remain closed, or (iii) a day on which the
Corporate  Trust  Office of the Trustee, or, with respect to the Securities of a
series  initially  issued  to  an Issuer Trust, the "Corporate Trust Office" (as
defined  in the related Trust Agreement) of the Property Trustee or the Delaware
Trustee  under  the  related  Trust  Agreement,  is  closed  for  business.

     "Capital Securities" has the meaning specified in the first recital of this
Indenture.

     "Capital Treatment Event" means, in respect of any Issuer Trust, receipt by
the  Property Trustee of such Issuer Trust of an Opinion of Counsel, experienced
in  such matters and who may be counsel to the Company, and determination by the
Company  that,  as  a  result  of  the occurrence of any amendment to, or change
(including  any  announced  prospective  change)  in,  the laws (or any rules or

                                      -3-
<PAGE>
regulations  thereunder)  of  the  United  States  or  any political subdivision
thereof  or  therein,  or  as  a  result  of  any  official  or  administrative
pronouncement  or  action  (including  any  action  taken  in  connection with a
regulatory  examination  or  in  connection with or as a result of any change in
regulatory  policy)  or  judicial decision interpreting or applying such laws or
regulations,  which  amendment  or  change  is  effective or such pronouncement,
action  or  decision  is  announced  on or after the date of the issuance of the
Capital  Securities  of  such  Issuer Trust, there is more than an insubstantial
risk  that  the  Company  will  not  be entitled to treat an amount equal to the
Liquidation  Amount  of such Capital Securities as "Tier 1 Capital" (or the then
equivalent  thereof)  for purposes of the risk-based capital adequacy guidelines
of  the  Board of Governors of the Federal Reserve System, as then in effect and
applicable  to  the  Company.

     "Clearing  Agency"  means an organization registered as a "clearing agency"
pursuant  to  Section  17A  of  the  Exchange  Act.

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

     "Commission"  means  the  United States Securities and Exchange Commission,
or  any  successor  thereto.

     "Common  Securities" has the meaning specified in the first recital of this
Indenture.

     "Common  Stock"  means  the  Company's  common  stock,  no  par  value.

     "Company" means the Person named as the "Company" in the first paragraph of
this  instrument until a successor entity shall have become such pursuant to the
applicable  provisions  of  this  Indenture, and thereafter "Company" shall mean
such  successor  entity.

     "Company  Request"  and  "Company  Order"  mean,  respectively, the written
request  or order signed in the name of the Company by its Chairman of the Board
of  Directors,  any  Vice Chairman of the Board of Directors, its President or a
Senior Vice President or Vice President, and by its Chief Financial Officer, its
Treasurer or an Assistant Treasurer, or its Secretary or an Assistant Secretary,
and  delivered  to  the  Trustee.

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

     "Creditor"  has  the  meaning  specified  in  Section  6.7(c).

                                      -4-
<PAGE>
     "Defaulted  Interest"  has  the  meaning  specified  in  Section  3.8.

     "Delaware  Trustee"  means,  with  respect  to any Issuer Trust, the Person
identified  as  the "Delaware Trustee" in the related Trust Agreement, solely in
its capacity as Delaware Trustee of such Issuer Trust under such Trust Agreement
and  not  in  its  individual  capacity,  or  its  successor in interest in such
capacity,  or  any  successor  Delaware  trustee  appointed as therein provided.

     "Depositary"  means,  with respect to the Securities of any series issuable
or  issued in whole or in part in the form of one or more Global Securities, the
Person  designated  as  Depositary  by  the Company pursuant to Section 3.1 with
respect  to  such  series  (or  any  successor  thereto).

     "Discount  Security"  means  any  security that provides for an amount less
than  the  principal  amount thereof to be due and payable upon a declaration of
acceleration  of  the  Maturity  thereof  pursuant  to  Section  5.2.

     "Dollar" or "$" means the currency of the United States of America that, as
at  the  time  of payment, is legal tender for the payment of public and private
debts.

     "Entity"  includes  a bank, corporation, partnership, association, company,
limited  liability  company,  joint-stock  company  or  business  trust.

     "Event  of  Default,"  unless  otherwise  specified  in  the  supplemental
indenture  creating a series of Securities, has the meaning specified in Article
V.

     "Exchange  Act"  means  the Securities Exchange Act of 1934 and any statute
successor  thereto,  in  each  case  as  amended  from  time  to  time.

     "Expiration  Date"  has  the  meaning  specified  in  Section  1.4(f).

     "Extension  Period"  has  the  meaning  specified  in  Section  3.12.

     "Federal  Reserve"  means  the  Board  of  Governors of the Federal Reserve
System  and  its  delegees.

     "Global  Security"  means  a  Security in the form prescribed in Article II
evidencing  all  or  part of a series of Securities, issued to the Depositary or
its  nominee  for  such series, and registered in the name of such Depositary or
its  nominee.

     "Guarantee" means, with respect to any Issuer Trust, the obligations of the
Company  under  the  Guarantee  Agreement.

                                      -5-
<PAGE>
     "Guarantee Agreement" means any Guarantee Agreement executed by the Company
for  the  benefit of the Holders of the Capital Securities issued by each Issuer
Trust,  as  modified,  amended  or  supplemented  from  time  to  time.

     "Holder"  means  a  Person  in  whose  name a Security is registered in the
Securities  Register.

     "Indenture"  means this instrument as originally executed or as it may from
time  to  time be supplemented or amended by one or more indentures supplemental
hereto  entered  into  pursuant  to  the  applicable provisions hereof and shall
include  the  terms  of  each  particular  series  of  Securities established as
contemplated  by  Section  3.1.

     "Interest  Payment Date" means, as to each series of Securities, the Stated
Maturity  of  an  installment  of  interest  on  such  Securities.

     "Investment  Company  Act" means the Investment Company Act of 1940 and any
statute  successor  thereto,  in  each  case  as  amended  from  time  to  time.

     "Investment  Company  Event"  means  the  receipt  by an Issuer Trust of an
Opinion  of  Counsel (as defined in the relevant Trust Agreement) experienced in
such  matters  to  the effect that, as a result of the occurrence of a change in
law  or  regulation  or  a  written  change (including any announced prospective
change) in interpretation or application of law or regulation by any legislative
body,  court, governmental agency or regulatory authority, there is more than an
insubstantial  risk  that  such  Issuer  Trust  is  or  will  be  considered  an
"investment  company"  that  is  required  to be registered under the Investment
Company  Act,  which  change  or  prospective  change becomes effective or would
become  effective,  as  the case may be, on or after the date of the issuance of
the  Capital  Securities  of  such  Issuer  Trust.

     "Issuer  Trust"  has  the  meaning  specified  in the first recital of this
Indenture.

     "Liquidation  Amount"  shall  have  the  meaning assigned in the applicable
related  Trust  Agreement.

     "Maturity"  when  used with respect to any Security means the date on which
the  principal  of  such  Security  becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call
for  redemption  or  otherwise.

     "Notice of Default" means a written notice of the kind specified in Section
5.1(3).

     "Officers'  Certificate"  means a certificate signed by the Chairman of the
Board  of  Directors,  Vice  Chairman of the Board of Directors, Chief Executive
Officer,  the  President  or  any  Vice  President,  and  by the Chief Financial
Officer,  the  Treasurer,  an Assistant Treasurer, the Secretary or an Assistant

                                      -6-
<PAGE>
Secretary,  of  the  Company,  and  delivered to the party provided herein.  Any
Officers'  Certificate  delivered with respect to compliance with a condition or
covenant  provided  for  in  this  Indenture  shall  include:

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

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

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

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

     "Opinion of Counsel" means a written opinion of counsel, who may be counsel
for  or  an  employee  of  the  Company  or  any  Affiliate  of  the  Company.

     "Original  Issue Date" means the date of issuance specified as such in each
Security.

     "Outstanding"  means,  when  used in reference to any Securities, as of the
date  of  determination,  all Securities theretofore authenticated and delivered
under  this  Indenture,  except:

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

     (ii) Securities  for  whose  payment money in the necessary amount has been
          theretofore  deposited  with  the Trustee or any Paying Agent in trust
          for  the  Holders  of  such  Securities;  and

     (iii) Securities  in  substitution for or in lieu of which other Securities
          have  been authenticated and delivered or that have been paid pursuant
          to  Section 3.6, unless proof satisfactory to the Trustee is presented
          that  any  such  Securities  are  held  by Holders in whose hands such
          Securities  are  valid,  binding and legal obligations of the Company;
          provided, however, in determining whether the Holders of the requisite
          principal  amount  of  Outstanding  Securities have given any request,
          demand, authorization, direction, notice, consent or waiver hereunder,
          Securities  owned  by  the  Company  or  any  other  obligor  upon the
          Securities  or  any  Affiliate  of  the  Company or such other obligor
          (other  than  the  Issuer  Trust to which Securities of the applicable
          series  were  initially issued) shall be disregarded and deemed not to
          be  Outstanding, except that, in determining whether the Trustee shall

                                      -7-
<PAGE>
          be  protected in relying upon any such request, demand, authorization,
          direction, notice, consent or waiver, only Securities that the Trustee
          knows to be so owned shall be so disregarded. Securities so owned that
          have  been pledged in good faith may be regarded as Outstanding if the
          pledgee  establishes  to the satisfaction of the Trustee the pledgee's
          right  so  to act with respect to such Securities and that the pledgee
          is  not  the  Company  or any other obligor upon the Securities or any
          Affiliate of the Company or such other obligor (other than such Issuer
          Trust).  Upon  the  written  request of the Trustee, the Company shall
          furnish  to  the Trustee promptly an Officers' Certificate listing and
          identifying  all  Securities, if any, known by the Company to be owned
          or  held by or for the account of the Company, or any other obligor on
          the  Securities or any Affiliate of the Company or such obligor (other
          than,  for the avoidance of doubt, such Issuer Trust), and, subject to
          the provisions of Section 6.1, the Trustee shall be entitled to accept
          such Officers' Certificate as conclusive evidence of the facts therein
          set  forth  and of the fact that all Securities not listed therein are
          Outstanding  for  the  purpose  of  any  such  determination.

     "Paying Agent" means the Trustee or any Person authorized by the Company to
pay  the  principal  of (or premium, if any) or interest on, or other amounts in
respect  of  any  Securities  on  behalf  of  the  Company.

     "Person"  means any individual, corporation, partnership, limited liability
company,  joint venture, trust, unincorporated organization or government or any
agency  or  political  subdivision  thereof.

     "Place of Payment" means, with respect to the Securities of any series, the
place or places where the principal of (and premium, if any) and interest on the
Securities  of  such  series  are  payable  pursuant  to  Section  3.1.

     "Predecessor  Security"  of  any  particular  Security means every previous
Security  evidencing all or a portion of the same debt as that evidenced by such
particular  Security.  For  the  purposes  of  this  definition,  any  security
authenticated and delivered under Section 3.7 in lieu of a mutilated, destroyed,
lost  or  stolen  Security  shall  be  deemed  to  evidence the same debt as the
mutilated,  destroyed,  lost  or  stolen  Security.

     "Principal  Subsidiary"  means  (i)  Peoples  Bank,  a  North  Carolina
corporation,  (ii)  any  other subsidiary of the Company the consolidated assets
of  which  constitute  20% or more of the consolidated assets of the Company and
its  consolidated  subsidiaries,  (iii)  any  other  subsidiary  designated as a
Principal  Subsidiary  pursuant  to  a  Board  Resolution  and  set  forth in an
Officers'  Certificate  delivered to the Trustee, and (iv) any subsidiary of the
Company  that  owns,  directly or indirectly, any voting securities, or options,
warrants  or  rights  to  subscribe  for  or  purchase voting securities, of any
Principal  Subsidiary under clause (i), (ii) or (iii), and in the case of clause
(i), (ii), (iii) or (iv), their respective successors (whether by consolidation,
merger,  conversion,  transfer of substantially all their assets and business or

                                      -8-
<PAGE>
otherwise) so long as any such successor is a banking subsidiary (in the case of
clause  (i),  (ii)  or (iii) or a subsidiary (in the case of clause (iv)) of the
Company.

     "Proceeding"  has  the  meaning  specified  in  Section  13.2.

     "Property  Trustee"  means,  with  respect  to any Issuer Trust, the Person
identified  as  the "Property Trustee" in the related Trust Agreement, solely in
its capacity as Property Trustee of such Issuer Trust under such Trust Agreement
and  not  in  its  individual  capacity,  or  its  successor in interest in such
capacity,  or  any  successor  property  trustee  appointed as therein provided.

     "Redemption  Date,"  when used with respect to any Security to be redeemed,
means the date fixed for such redemption by or pursuant to this Indenture or the
terms  of  such  Security.

     "Redemption  Price," when used with respect to any Security to be redeemed,
means  the price at which it is to be redeemed pursuant to this Indenture or the
terms  of  such  Security.

     "Regular Record Date" for the interest payable on any Interest Payment Date
with  respect  to  the  Securities  of a series means, unless otherwise provided
pursuant  to Section 3.1 with respect to Securities of such series, the close of
business  on  the fifteenth day of the month in which such Interest Payment Date
occurs  (whether  or  not  a  Business  Day).

     "Responsible  Officer,"  when  used  with  respect to the Trustee means any
officer assigned to the Corporate Trust Office, including any managing director,
vice  president,  principal,  assistant  vice  president,  assistant  treasurer,
assistant  secretary  or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of this Indenture, and also,
with  respect  to  a particular matter, any other officer to whom such matter is
referred  because  of  such  officer's  knowledge  of  and  familiarity with the
particular  subject.

     "Restricted  Security"  means all Securities including those represented by
the  debenture  attached  hereto  as  Exhibit  A  or  those  represented  by the
                                      ----------
Restricted Securities Certificate attached hereto as Exhibit B.
                                                     ----------

     "Restricted  Securities  Certificate"  means a certificate substantially in
the  form  set  forth  in  Exhibit  B.
                           ----------

     "Rights  Plan"  means any plan of the Company providing for the issuance by
the  Company to all holders of its Common Stock, of rights entitling the holders
thereof  to  subscribe  for or purchase shares of any class or series of capital
stock  of  the  Company  which rights (i) are deemed to be transferred with such
shares of such Common Stock, (ii) are not exercisable, and (iii) are also issued
in  respect  of  future  issuances  of such Common Stock, in each case until the
occurrence  of  a  specified  event  or  events.

                                      -9-
<PAGE>
     "Securities"  or  "Security" means any debt securities or debt security, as
the  case  may  be,  authenticated  and  delivered  under  this  Indenture.

     "Securities  Act" means the Securities Act of 1933, as modified, amended or
supplemented  from  time  to  time.

     "Securities  Register"  and  "Securities  Registrar"  have  the  respective
meanings  specified  in  Section  3.6(a).

     "Senior Indebtedness" means, whether recourse is to all or a portion of the
assets of the Company and whether or not contingent: (i) every obligation of the
Company  for  borrowed  money; (ii) every obligation of the Company evidenced by
bonds,  debentures,  notes  or  other similar instruments, including obligations
incurred  in  connection with the acquisition of property, assets or businesses;
(iii)  every  reimbursement obligation of the Company with respect to letters of
credit, bankers' acceptances or similar facilities issued for the account of the
Company;  (iv) every obligation of the Company issued or assumed as the deferred
purchase  price of property or services (but excluding trade accounts payable or
accrued  liabilities  arising  in  the  ordinary  course of business); (v) every
capital  lease  obligation  of the Company; (vi) every obligation of the Company
for  claims  (as defined in Section 101(4) of the Bankruptcy Code) in respect of
derivative  products  such  as  interest  and  foreign  exchange rate contracts,
commodity contracts, swaps, options, caps, collars and similar arrangements; and
(vii)  every  obligation  of the type referred to in clauses (i) through (vi) of
another Person the payment of which the Company has guaranteed or is responsible
or  liable,  directly  or  indirectly,  as  obligor  or  otherwise.  "Senior
Indebtedness"  excludes (i) any obligations which, by their terms, are expressly
stated  to  rank  pari  passu in right of payment with, or to not be superior in
right  of  payment to, the Junior Subordinated Debentures, (ii) any indebtedness
of  the  Company  which  when incurred and without respect to any election under
Section  1111(b)  of  the  Bankruptcy  Code was without recourse to the Company,
(iii)  any  indebtedness  of  the  Company  to  any  of  its  subsidiaries, (iv)
indebtedness  to  any  executive  officer or director of the Company, or (v) any
indebtedness  in respect of debt securities issued to any trust, or a trustee of
such  trust,  partnership  or other entity affiliated with the Company that is a
financing  entity  of  the  Company  in  connection  with  the  issuance of such
financing  entity  of  securities  that  are  similar to the Capital Securities.

     "Special  Record  Date"  for  the payment of any Defaulted Interest means a
date  fixed  by  the  Trustee  pursuant  to  Section  3.8.

     "Stated  Maturity,"  when  used  with  respect  to  any  Security  or  any
installment  of  principal thereof or interest thereon, means the date specified
pursuant  to the terms of such Security as the fixed date on which the principal
of  such  Security  or  such  installment  of  principal  or interest is due and
payable,  as  such  date  may,  in  the  case of such principal, be shortened or
extended  as provided pursuant to the terms of such Security and this Indenture.

                                      -10-
<PAGE>
     "Subsidiary"  means an entity more than 50% of the outstanding voting stock
of  which  is  owned,  directly  or indirectly, by the Company or by one or more
other  Subsidiaries,  or by the Company and one or more other Subsidiaries.  For
purposes  of  this  definition,  "voting  stock" means stock that ordinarily has
voting power for the election of directors, whether at all times or only so long
as  no senior class of stock has such voting power by reason of any contingency.

     "Successor Security" of any particular Security means every Security issued
after,  and  evidencing  all or a portion of the same debt as that evidenced by,
such particular Security; and, for the purposes of this definition, any Security
authenticated  and  delivered  under Section 3.7 in exchange for or in lieu of a
mutilated,  destroyed,  lost  or stolen Security shall be deemed to evidence the
same  debt  as  the  mutilated,  destroyed,  lost  or  stolen  Security.

     "Tax  Event"  means the receipt by an Issuer Trust of an Opinion of Counsel
(as  defined in the relevant Trust Agreement) experienced in such matters to the
effect that, as a result of any amendment to, or change (including any announced
prospective  change)  in, the laws (or any regulations thereunder) of the United
States  or  any political subdivision or taxing authority thereof or therein, or
as  a  result  of  any  official  or  administrative  pronouncement or action or
judicial  decision  interpreting  or  applying  such  laws or regulations, which
amendment or change is effective or which pronouncement or decision is announced
on  or after the date of issuance of the Capital Securities of such Issuer Trust
(including, without limitation, any of the foregoing arising with respect to, or
resulting from, any proposal, proceeding or other action commencing on or before
such  date), there is more than an insubstantial risk that (i) such Issuer Trust
is,  or  will  be  within  90  days  of the delivery of such Opinion of Counsel,
subject  to  United States Federal income tax with respect to income received or
accrued  on the corresponding series of Securities issued by the Company to such
Issuer  Trust, (ii) interest payable by the Company on such corresponding series
of  Securities  is  not,  or  within  90 days of the delivery of such Opinion of
Counsel  will not be, deductible by the Company, in whole or in part, for United
States  Federal  income  tax purposes, or (iii) such Issuer Trust is, or will be
within  90 days of the delivery of such Opinion of Counsel, subject to more than
a  de  minimis  amount  of  other  taxes,  duties or other governmental charges.

     "Trust  Agreement"  means,  with  respect  to  any  Issuer Trust, the trust
agreement  or  other  governing instrument of such Issuer Trust, as amended from
time  to  time.

     "Trustee" means the Person named as the "Trustee" in the first paragraph of
this  Indenture,  solely  in  its  capacity  as  such  and not in its individual
capacity,  until  a  successor  Trustee  shall  have become such pursuant to the
applicable  provisions of this Indenture, and thereafter "Trustee" shall mean or
include each Person who is then a Trustee hereunder and, if at any time there is
more  than  one such Person, "Trustee" as used with respect to the Securities of
any  series  shall  mean  the Trustee with respect to Securities of that series.

                                      -11-
<PAGE>
     "Trust  Indenture  Act" means the Trust Indenture Act of 1939, as modified,
amended  or  supplemented  from  time  to  time.

     "Trust  Securities"  has the meaning specified in the first recital of this
Indenture.

     "Vice  President,"  when  used  with respect to the Company, means any duly
appointed  vice  president,  whether  or not designated by a number or a word or
words  added  before  or  after  the  title  "vice  president."

SECTION  1.2.     COMPLIANCE  CERTIFICATE  AND  OPINIONS.

     Upon  any  application or request by the Company to the Trustee to take any
action  under  any provision of this Indenture, the Company shall furnish to the
Trustee  an  Officers'  Certificate  stating  that  all  conditions  precedent
(including  covenants,  the  compliance  with  which  constitutes  a  condition
precedent),  if  any,  provided  for  in this Indenture relating to the proposed
action  have  been  complied with and an Opinion of Counsel stating that, in the
opinion  of  such  counsel,  all  such conditions precedent (including covenants
compliance  with  which  constitutes  a  condition precedent), if any, have been
complied  with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of  this  Indenture  relating  to  such  particular  application  or request, no
additional  certificate  or  opinion  need  be  furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant  provided  for  in this Indenture (other than the certificates provided
pursuant  to  Section  10.4)  shall  include:

     (1)  a  statement  by  each  individual signing such certificate or opinion
          that  such  individual  has  read  such  covenant or condition and the
          definitions  herein  relating  thereto;

     (2)  a  brief  statement  as  to the nature and scope of the examination or
          investigation upon which the statements or opinions of such individual
          contained  in  such  certificate  or  opinion  are  based;

     (3)  a  statement  that,  in  the opinion of such individual, he or she has
          made  such  examination or investigation as is necessary to enable him
          or  her  to  express  an  informed  opinion  as to whether or not such
          covenant  or  condition  has  been  complied  with;  and

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

SECTION  1.3.     FORMS  OF  DOCUMENTS  DELIVERED  TO  TRUSTEE.

                                      -12-
<PAGE>
     In  any  case  where  several  matters  are required to be certified by, or
covered  by  an  opinion  of, any specified Person, it is not necessary that all
such  matters  be  certified  by,  or  covered  by the opinion of, only one such
Person,  or  that  they be so certified or covered by only one document, but one
such  Person may certify or give an opinion with respect to some matters and one
or  more other such Persons as to other matters, and any such Person may certify
or  give  an  opinion  as  to  such  matters  in  one  or  several  documents.

     Any  certificate  or  opinion  of  an  officer of the Company may be based,
insofar  as  it  relates  to legal matters, upon a certificate or opinion of, or
representations  by,  counsel,  unless such officer knows, or in the exercise of
reasonable  care should know, that the certificate or opinion or representations
with  respect  to  matters upon which his or her certificate or opinion is based
are erroneous.  Any such certificate or Opinion of Counsel may be based, insofar
as  it  relates  to  factual  matters,  upon  a  certificate  or  opinion of, or
representations  by,  an  officer  or  officers  of the Company stating that the
information  with  respect  to  such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know,  that  the  certificate or opinion or representations with respect to such
matters  are  erroneous.

     Where  any  Person  is  required  to  make,  give  or  execute  two or more
applications,  requests,  consents, certificates, statements, opinions, or other
instruments  under  this  Indenture, they may, but need not, be consolidated and
form  one  instrument.

SECTION  1.4.     ACTS  OF  HOLDERS.

     (a)     Any  request,  demand,  authorization,  direction, notice, consent,
waiver  or  other  action  provided by this Indenture to be given to or taken by
Holders  may  be  embodied  in  and  evidenced  by  one  or  more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed  in  writing; and, except as herein otherwise expressly provided, such
action  shall  become  effective  when  such instrument or instruments is or are
delivered  to  the  Trustee,  and, where it is hereby expressly required, to the
Company.  Such  instrument  or  instruments (and the action embodied therein and
evidenced  thereby)  are herein sometimes referred to as an "Act" of the Holders
                                                             ---
signing  such  instrument  or  instruments.  Proof  of  execution  of  any  such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose  of  this  Indenture and (subject to Section 6.1) conclusive in favor of
the  Trustee  and  the  Company, if made in the manner provided in this Section.

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

                                      -13-
<PAGE>
     (c)     The  fact  and  date  of  the  execution  by any Person of any such
instrument  or  writing,  or the authority of the Person executing the same, may
also  be  provided  in any other manner that the Trustee deems sufficient and in
accordance  with  such  reasonable  rules  as  the  Trustee  may  determine.

     (d)     The  ownership  of  Securities  shall be proved conclusively by the
Securities  Register.

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

     (f)     The  Company  may  set  any day as a record date for the purpose of
determining  the  Holders  of  Outstanding  Securities of any series entitled to
give,  make  or  take  any  request,  demand,  authorization, direction, notice,
consent,  waiver  or  other action provided or permitted by this Indenture to be
given,  made or taken by Holders of Securities of such series, provided that the
Company  may  not  set  a  record date for, and the provisions of this paragraph
shall  not  apply  with  respect  to,  the  giving  or  making  of  any  notice,
declaration,  request or direction referred to in the next succeeding paragraph.
If any record date is set pursuant to this paragraph, the Holders of Outstanding
Securities  of  the  relevant  series on such record date, and no other Holders,
shall  be  entitled  to  take  the  relevant action, whether or not such Holders
remain  Holders  after  such  record date, provided that no such action shall be
effective  hereunder  unless taken on or prior to the applicable Expiration Date
(as  defined  below) by Holders of the requisite principal amount of Outstanding
Securities  of such series on such record date.  Nothing in this paragraph shall
be  construed  to  prevent  the  Company  from setting a new record date for any
action  for  which  a  record  date  previously  has  been  set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no  action  by  any  Person  be cancelled and of no effect), and nothing in this
paragraph  shall  be construed to render ineffective any action taken by Holders
of  the  requisite  principal  amount  of Outstanding Securities of the relevant
series  on the date such action is taken.  Promptly after any record date is set
pursuant  to this paragraph, the Company, at its own expense, shall cause notice
of  such  record  date,  the  proposed  action  by  Holders  and  the applicable
Expiration  Date  to  be  given  to the Trustee in writing and to each Holder of
Securities  of  the  relevant  series  in  the  manner set forth in Section 1.6.

     The Trustee may set any day as a record date for the purpose of determining
the  Holders  of  Outstanding  Securities  of any series entitled to join in the
giving  or  making  of  (i)  any  Notice  of  Default,  (ii)  any declaration of
acceleration  referred  to  in  Section  5.2,  (iii)  any  request  to institute
proceedings  referred to in Section 5.7(3), or (iv) any direction referred to in
Section  5.12,  in  each case with respect to Securities of such series.  If any
record  date  is  set  pursuant  to  this  paragraph, the Holders of Outstanding
Securities  of  such  series on such record date, and no other Holders, shall be
entitled  to  join in such notice, declaration, request or direction, whether or
not  such  Holders  remain Holders after such record date, provided that no such
action  shall  be effective hereunder unless taken on or prior to the applicable

                                      -14-
<PAGE>
Expiration  Date  by  Holders  of  the requisite principal amount of Outstanding
Securities  of such series on such record date.  Nothing in this paragraph shall
be  construed  to  prevent  the  Trustee  from setting a new record date for any
action  for  which  a  record  date  has  previously  been  set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no  action  by  any  Person  be  cancelled and of no effect) and nothing in this
paragraph  shall  be construed to render ineffective any action taken by Holders
of  the  requisite  principal  amount  of Outstanding Securities of the relevant
series  on the date such action is taken.  Promptly after any record date is set
pursuant  to  this paragraph, the Trustee, at the Company's expense, shall cause
notice  of  such  record date, the proposed action by Holders and the applicable
Expiration  Date  to  be  given  to the Company in writing and to each Holder of
Securities  of  the  relevant  series  in  the  manner set forth in Section 1.6.

     With  respect  to  any  record date set pursuant to this Section, the party
hereto that sets such record date may designate any day as the "Expiration Date"
                                                                ---------------
and  from  time  to  time may change the Expiration Date to any earlier or later
day,  provided  that  no  such  change  shall  be effective unless notice of the
proposed  new Expiration Date is given to the other party hereto in writing, and
to  each  Holder of Securities of the relevant series in the manner set forth in
Section  1.6 on or prior to the existing Expiration Date.  If an Expiration Date
is  not designated with respect to any record date set pursuant to this Section,
the  party  hereto  that  set such record date shall be deemed to have initially
designated  the  180th  day  after  such record date as the Expiration Date with
respect  thereto, subject to its right to change the Expiration Date as provided
in  this  paragraph.  Notwithstanding the foregoing, no Expiration Date shall be
later  than  the  180th  day  after  the  applicable  record  date.

     (g)     Without limiting the foregoing, a Holder entitled hereunder to take
any  action  hereunder  with  regard  to  any particular Security may do so with
regard  to all or any part of the principal amount of such Security or by one or
more  duly appointed agents each of which may do so pursuant to such appointment
with  regard  to  all  or  any  part  of  such  principal  amount.

SECTION  1.5.     NOTICES,  ETC.  TO  TRUSTEE  AND  COMPANY.

     Any  request,  demand, authorization, direction, notice, consent, waiver or
Act  of  Holders or other document provided or permitted by this Indenture to be
made  upon,  given  or  furnished  to,  or  filed  with,

     (1)  the  Trustee  by  any  Holder, any holder of Capital Securities or the
          Company  shall  be  sufficient  for  every  purpose hereunder if made,
          given,  furnished  or  filed  in writing to or with the Trustee at its
          Corporate  Trust  Office,  or

     (2)  the  Company  by  the  Trustee,  any  Holder  or any holder of Capital
          Securities  shall be sufficient for every purpose (except as otherwise
          provided  in  Section  5.1)  hereunder if in writing and mailed, first
          class,  postage prepaid, to the Company addressed to it at the address

                                      -15-
<PAGE>
          of  its  principal  office  specified  in  the first paragraph of this
          instrument  or at any other address previously furnished in writing to
          the  Trustee  by  the  Company.

SECTION  1.6.     NOTICE  TO  HOLDERS;  WAIVER.

     Where  this  Indenture  provides  for  notice to Holders of any event, such
notice  shall be sufficiently given (unless otherwise herein expressly provided)
if  in  writing and mailed, first class postage prepaid, to each Holder affected
by  such  event,  at  the address of such Holder as it appears in the Securities
Register,  not  later  than  the  latest date, and not earlier than the earliest
date, prescribed for the giving of such notice.  If, by reason of the suspension
of  or irregularities in regular mail services or for any other reason, it shall
be  impossible or impracticable to mail notice of any event to Holders when said
notice is required to be given pursuant to any provision of this Indenture or of
the  relevant  Securities,  then  any  manner  of giving such notice as shall be
satisfactory  to  the  Trustee shall be deemed to be a sufficient giving of such
notice.  In  any  case  where  notice  to  Holders is given by mail, neither the
failure  to  mail  such  notice,  nor any defect in any notice so mailed, to any
particular  Holder  shall  affect the sufficiency of such notice with respect to
other  Holders.  Where  this  Indenture  provides for notice in any manner, such
notice  may  be waived in writing by the Person entitled to receive such notice,
either  before  or  after  the event, and such waiver shall be the equivalent of
such  notice.  Waivers of notice by Holders shall be filed with the Trustee, but
such  filing  shall  not  be a condition precedent to the validity of any action
taken  in  reliance  upon  such  waiver.

SECTION  1.7.     CONFLICT  WITH  TRUST  INDENTURE  ACT.

     If  any provision hereof limits, qualifies or conflicts with a provision of
the  Trust  Indenture  Act  that  is required under such Act to be a part of and
govern  this  Indenture, the provision of the Trust Indenture Act shall control.
If  any  provision  of  this Indenture modifies or excludes any provision of the
Trust  Indenture  Act  that may be so modified or excluded, the latter provision
shall  be deemed to apply to this Indenture as so modified or to be excluded, as
the  case  may  be.

SECTION  1.8.     EFFECT  OF  HEADINGS  AND  TABLE  OF  CONTENTS.

     The  Article  and Section headings herein and the Table of Contents are for
convenience  only  and  shall  not  affect  the  construction  hereof.

SECTION  1.9.     SUCCESSORS  AND  ASSIGNS.

     All  covenants  and  agreements in this Indenture by the Company shall bind
its  successors  and  assigns,  whether  so  expressed  or  not.

SECTION  1.10.     SEPARABILITY  CLAUSE.

                                      -16-
<PAGE>
     If  any  provision in this Indenture or in the Securities shall be invalid,
illegal  or  unenforceable,  the  validity,  legality  and enforceability of the
remaining  provisions  shall  not  in  any  way be affected or impaired thereby.

SECTION  1.11.     BENEFITS  OF  INDENTURE.

     Nothing  in  this Indenture or in the Securities, express or implied, shall
give  to  any  Person,  other  than  the parties hereto and their successors and
assigns,  the holders of Senior Indebtedness, the Holders of the Securities and,
to  the  extent  expressly  provided in Sections 5.2, 5.7, 5.8, 5.9, 5.11, 5.12,
5.13,  9.1  and 9.2, the holders of Capital Securities, any benefit or any legal
or  equitable  right,  remedy  or  claim  under  this  Indenture.

SECTION  1.12.     GOVERNING  LAW.

     THIS  INDENTURE  AND  THE  SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH  THE  LAWS  OF  THE  STATE  OF  NEW  YORK.

SECTION  1.13.     NON-BUSINESS  DAYS.

     If  any  Interest  Payment  Date, Redemption Date or Stated Maturity of any
Security  shall not be a Business Day, then (notwithstanding any other provision
of  this  Indenture  or  the  Securities)  payment of interest or principal (and
premium,  if  any) or other amounts in respect of such Security need not be made
on  such  date,  but  may  be  made  on the next succeeding Business Day (and no
interest  shall accrue in respect of the amounts whose payment is so delayed for
the  period from and after such Interest Payment Date, Redemption Date or Stated
Maturity,  as  the case may be, until such next succeeding Business Day), except
that, if such Business Day is in the next succeeding calendar year, such payment
shall  be  made on the immediately preceding Business Day (in each case with the
same force and effect as if made on the Interest Payment Date or Redemption Date
or  at  the  Stated  Maturity).

                                   ARTICLE II
                                 SECURITY FORMS

SECTION  2.1.     FORMS  GENERALLY.

     The  Securities  of  each  series  and  the  Trustee's  certificate  of
authentication shall be in substantially the forms set forth in this Article, or
in  such  other  form or forms as shall be established by or pursuant to a Board
Resolution  or  in one or more indentures supplemental hereto, in each case with
such  appropriate  insertions,  omissions, substitutions and other variations as
are  required  or permitted by this Indenture and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon

                                      -17-
<PAGE>
as  may  be  required  to  comply with applicable tax laws, banking laws, or the
rules of any securities exchange or as may, consistently herewith, be determined
by  the  officers  executing such securities, as evidenced by their execution of
the Securities. If the form of Securities of any series is established by action
taken  pursuant  to  a Board Resolution, a copy of an appropriate record of such
action  shall  be  certified  by  the Secretary or an Assistant Secretary of the
Company  and delivered to the Trustee at or prior to the delivery of the Company
Order  contemplated  by  Section  3.3  with  respect  to  the authentication and
delivery  of  such  Securities.

     The  Trustee's certificates of authentication shall be substantially in the
form  set  forth  in  this  Article.

     The  definitive  Securities  shall  be printed, lithographed or engraved or
produced  by  any  combination  of  these methods, if required by any securities
exchange  on  which  the Securities may be listed, on a steel engraved border or
steel  engraved  borders or may be produced in any other manner permitted by the
rules of any securities exchange, if any, on which the Securities may be listed,
all  as  determined  by  the officers executing such Securities, as evidenced by
their  execution  of  such  Securities.

     Securities  distributed to holders of Global Capital Securities (as defined
in the applicable Trust Agreement) upon the dissolution of an Issuer Trust shall
be  distributed  in  the form of one or more Global Securities registered in the
name  of  a  Depositary  or  its  nominee,  and  deposited  with  the Securities
Registrar, as custodian for such Depositary, or with such Depositary, for credit
by  the  Depositary  to  the respective accounts of the beneficial owners of the
Securities  represented  thereby  (or  such  other accounts as they may direct).
Securities  distributed  to  holders  of  Capital  Securities  other than Global
Capital  Securities  upon the dissolution of an Issuer Trust shall not be issued
in  the  form  of  a  Global  Security  or any other form intended to facilitate
book-entry  trading  in  beneficial  interests  in  such  Securities.

SECTION 2.2.     FORM OF FACE OF SECURITY.  The Securities shall be generally in
the form of Exhibit A hereto.
            ---------

SECTION  2.3.     ADDITIONAL  PROVISIONS  REQUIRED  IN  GLOBAL  SECURITY.

     Unless  otherwise  specified  as  contemplated  by  Section 3.1, any Global
Security  issued  hereunder  shall,  in  addition to the provisions contained in
Sections  2.1  and  2.2,  bear  a  legend  in  substantially the following form:

          THIS  SECURITY  IS  A  GLOBAL  SECURITY WITHIN THE MEANING OF THE
     INDENTURE  HEREINAFTER  REFERRED TO AND IS REGISTERED IN THE NAME OF A
     DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE
     FOR  SECURITIES  REGISTERED  IN  THE  NAME  OF A PERSON OTHER THAN THE
     DEPOSITARY  OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED

                                      -18-
<PAGE>
     IN  THE  INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
     DEPOSITARY  TO  A  NOMINEE  OF  THE  DEPOSITARY OR BY A NOMINEE OF THE
     DEPOSITARY  TO  THE  DEPOSITARY  OR ANOTHER NOMINEE OF THE DEPOSITARY,
     EXCEPT  IN  THE  LIMITED  CIRCUMSTANCES  DESCRIBED  IN  THE INDENTURE.

SECTION  2.4.     FORM  OF  TRUSTEE'S  CERTIFICATE  OF  AUTHENTICATION.

     The  Trustee's  certificate of authentication shall be in substantially the
following  form:

     This  is one of the Securities of the series designated therein referred to
in  the  within-mentioned  Indenture.

Dated:____________________          WILMINGTON  TRUST  COMPANY,
                                    not in its individual capacity,
                                    but solely as Trustee

                                    By:____________________________
                                    Authorized  Signatory

                                  ARTICLE III
                                 THE SECURITIES

SECTION  3.1.     TITLE  AND  TERMS.

     The  aggregate principal amount of Securities that may be authenticated and
delivered  under  this  Indenture  is  unlimited.

     The  Securities  may  be  issued  in  one  or  more series.  There shall be
established  in  or  pursuant to a Board Resolution and, subject to Section 3.3,
set  forth or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of  Securities  as  a  series:

     (a)     the title of the securities of such series, which shall distinguish
the  Securities  of  the  series  from  all  other  Securities;

     (b)     the  limit,  if  any,  upon  the  aggregate principal amount of the
Securities  of  such  series  that may be authenticated and delivered under this
Indenture  (except  for Securities authenticated and delivered upon registration
of  transfer  of,  or  in  exchange  for, or in lieu of, other Securities of the
series  pursuant  to  Sections  3.4,  3.5,  3.6,  9.6 or 11.6 and except for any

                                      -19-
<PAGE>
Securities  that,  pursuant  to  Section  3.3,  are  deemed  never  to have been
authenticated  and  delivered  hereunder);  provided,  however,  the  authorized
aggregate  principal amount of such series may be increased above such amount by
a  Board  Resolution  to  such  effect;

     (c)     the  Person  to whom any interest on a Security of the series shall
be payable, if other than the Person in whose name that Security (or one or more
Predecessor  Securities)  is  registered at the close of business on the Regular
Record  Date  for  such  interest;

     (d)     the  Stated  Maturity  or  Maturities on which the principal of the
Securities of such series is payable or the method of determination thereof, and
any  dates  on  which  or  circumstances under which, the Company shall have the
right  to  extend  or  shorten  such  Stated  Maturity  or  Maturities;

     (e)     the  rate  or rates, if any, at which the Securities of such series
shall  bear  interest,  if any, the rate or rates and extent to which Additional
Interest,  if  any,  shall  be  payable  with  respect to any Securities of such
series,  the  date  or dates from which any such interest or Additional Interest
shall  accrue,  the  Interest  Payment  Dates  on  which  such interest shall be
payable,  the right, pursuant to Section 3.12 or as otherwise set forth therein,
of  the  Company  to  defer  or extend an Interest Payment Date, and the Regular
Record Date for the interest payable on any Interest Payment Date, or the method
by  which  any  of  the  foregoing  shall  be  determined;

     (f)     the  place  or places where the principal of (and premium, if any),
interest  or  Additional  Interest  on  the  Securities  of such series shall be
payable,  the  place  or  places  where  the  Securities  of  such series may be
presented for registration of transfer or exchange, any restrictions that may be
applicable  to  any such transfer or exchange in addition to or in lieu of those
set  forth  herein  and the place or places where notices and demands to or upon
the  Company  in  respect  of  the  Securities  of  such  series  may  be  made;

     (g)     the period or periods within or the date or dates on which, if any,
the  price  or  prices  at  which  and  the  terms and conditions upon which the
Securities of such series may be redeemed, in whole or in part, at the option of
the  Company,  and  if other than by a Board Resolution, the manner in which any
election  by  the  Company  to  redeem  such  Securities  shall  be  evidenced;

     (h)     the  obligation  or  the  right,  if any, of the Company to redeem,
repay  or  purchase  the Securities of such series pursuant to any sinking fund,
amortization  or analogous provisions, or at the option of a Holder thereof, and
the  period  or periods within which, the price or prices at which, the currency
or  currencies  (including  currency unit or units) in which and the other terms
and  conditions upon which Securities of the series shall be redeemed, repaid or
purchased,  in  whole  or  in  part,  pursuant  to  such  obligation;

     (i)     the  denominations  in which any Securities of such series shall be
issuable,  if  other  than  integral  multiples  of  $1,000.00;

                                      -20-
<PAGE>
     (j)     if  other  than  Dollars, the currency or currencies (including any
currency  unit  or  units)  in  which the principal of (and premium, if any) and
interest  and Additional Interest, if any, on the Securities of the series shall
be  payable,  or  in which the Securities of the series shall be denominated and
the  manner of determining the equivalent thereof in Dollars for purposes of the
definition  of  Outstanding;

     (k)     the additions, modifications or deletions, if any, in the Events of
Default  or  covenants  of  the  Company  set  forth  herein with respect to the
Securities  of  such  series;

     (l)     if  other  than  the  principal  amount thereof, the portion of the
principal  amount  of  Securities  of  such  series  that  shall be payable upon
declaration  of  acceleration  of  the  Maturity  thereof;

     (m)     if  the  principal  amount  payable  at  the Stated Maturity of any
Securities  of  the  series will not be determinable as of any one or more dates
prior  to  the  Stated  Maturity,  the  amount  which  shall be deemed to be the
principal  amount  of  such  Securities  as  of  any  such  date for any purpose
thereunder  or  hereunder, including the principal amount thereof which shall be
due  and payable upon any Maturity other than the Stated Maturity or which shall
be  deemed to be Outstanding as of any date prior to the Stated Maturity (or, in
any such case, the manner in which such amount deemed to be the principal amount
shall  be  determined);

     (n)     if  applicable,  that  the Securities of the series, in whole or in
any  specified  part,  shall  be  defeasible  and,  if  other  than  by  a Board
Resolution,  the  manner  in  which  any election by the Company to defease such
Securities  shall  be  evidenced;

     (o)     the additions or changes, if any, to this Indenture with respect to
the  Securities of such series as shall be necessary to permit or facilitate the
issuance  of  the  Securities  of such series in bearer form, registrable or not
registrable  as  to  principal,  and  with  or  without  interest  coupons;

     (p)     any  index  or  indices used to determine the amount of payments of
principal of and premium, if any, on the Securities of such series or the manner
in  which  such  amounts  will  be  determined;

     (q)     if  applicable, that any Securities of the series shall be issuable
in  whole  or  in part in the form of one or more Global Securities and, in such
case,  the  respective  Depositaries for such Global Securities, the form of any
legend or legends that shall be borne by any such Global Security in addition to
or in lieu of that set forth in Section 2.4 and any circumstances in addition to
or  in  lieu of those set forth in Section 3.5 in which any such Global Security
may be exchanged in whole or in part for Securities registered, and any transfer
of  such  Global  Security in whole or in part may be registered, in the name or
names of Persons other than the Depositary for such Global Security or a nominee
thereof;

     (r)     the appointment of any Paying Agent or agents for the Securities of
such  series;

                                      -21-
<PAGE>
     (s)     the  terms  of  any right to convert or exchange Securities of such
series  into  any other securities or property of the Company, and the additions
or  changes,  if  any,  to this Indenture with respect to the Securities of such
series  to  permit  or  facilitate  such  conversion  or  exchange;

     (t)     if such Securities are to be issued to an Issuer Trust, the form or
forms  of  the  Trust  Agreement  and  Guarantee  relating  thereto;

     (u)     if  other than as set forth herein, the relative degree, if any, to
which  the  Securities  or  the  series shall be senior to or be subordinated to
other  series  of  Securities  in right of payment, whether such other series of
Securities  are  Outstanding  or  not;

     (v)     any addition to or change in the Events of Default which applies to
any  Securities  of the series and any change in the right of the Trustee or the
requisite Holders of such Securities to declare the principal amount thereof due
and  payable  pursuant  to  Section  5.2;

     (w)     any  addition  to or change in the covenants set forth in Article X
which  applies  to  Securities  of  the  series;  and

     (x)     any other terms of the Securities of such series (which terms shall
not  be  inconsistent with the provisions of this Indenture, except as permitted
by  Section  9.1(3)).

     All Securities of any one series shall be substantially identical except as
to denomination and except as may otherwise be provided herein or in or pursuant
to such Board Resolution and set forth, or determined in the manner provided, in
such  Officers'  Certificate  or  in  any  indenture  supplemental  hereto.

     If  any of the terms of the series are established by action taken pursuant
to  a  Board Resolution, a copy of an appropriate record of such action shall be
certified  by  the  Secretary  or  an  Assistant  Secretary  of  the Company and
delivered  to  the  Trustee  at  or  prior  to  the  delivery  of  the Officers'
Certificate  setting  forth  the  terms  of  the  series.

     The  securities  shall  be  subordinated  in  right  of  payment  to Senior
Indebtedness  as  provided  in  Article  XIII.

SECTION  3.2     DENOMINATIONS.

     The  Securities  of each series shall be in registered form without coupons
and  shall  be  issuable  in  integral  multiples of $1,000.00, unless otherwise
specified  as  contemplated  by  Section  3.1(i).

SECTION  3.3.     EXECUTION,  AUTHENTICATION,  DELIVERY  AND  DATING.

                                      -22-
<PAGE>
     The  Securities  shall be executed on behalf of the Company by its Chairman
of  the  Board  of  Directors,  its Vice Chairman of the Board of Directors, its
President,  its Chief Executive Officer or one of its Vice Presidents, under its
corporate  seal reproduced or impressed thereon and attested by its Secretary or
one of its Assistant Secretaries.  The signature of any of these officers on the
Securities  may  be  manual  or  facsimile.

     Securities  bearing  the  manual or facsimile signatures of individuals who
were  at  any  time  the  proper officers of the Company shall bind the Company,
notwithstanding  that  such  individuals or any of them have ceased to hold such
offices  prior  to the authentication and delivery of such Securities or did not
hold  such offices at the date of such Securities.  At any time and from time to
time after the execution and delivery of this Indenture, the Company may deliver
Securities  of  any  series  executed  by  the  Company  to  the  Trustee  for
authentication,  together  with  a  Company  Order  for  the  authentication and
delivery  of  such  Securities,  and  the Trustee in accordance with the Company
Order  shall  authenticate and deliver such Securities.  If the form or terms of
the Securities of the series have been established by or pursuant to one or more
Board  Resolutions  as permitted by Sections 2.1 and 3.1, in authenticating such
Securities,  and  accepting the additional responsibilities under this Indenture
in  relation  to  such Securities, the Trustee shall be entitled to receive, and
(subject to Section 6.1) shall be fully protected in relying upon, an Opinion of
Counsel  stating,

               (1)     if the form of such Securities has been established by or
     pursuant  to  Board  Resolution as permitted by Section 2.1, that such form
     has  been  established in conformity with the provisions of this Indenture;

               (2)     if  the terms of such Securities have been established by
     or  pursuant  to  Board  Resolution  as permitted by Section 3.1, that such
     terms  have  been  established  in  conformity  with the provisions of this
     Indenture;  and

               (3)     that such Securities, when authenticated and delivered by
     the  Trustee  and  issued  by  the Company in the manner and subject to any
     conditions  specified in such Opinion of Counsel, will constitute valid and
     legally  binding  obligations of the Company enforceable in accordance with
     their  terms,  subject  to  bankruptcy,  insolvency,  fraudulent  transfer,
     reorganization,  moratorium  and  similar  laws  of  general  applicability
     relating  to  or  affecting  creditors'  rights  and  to  general  equity
     principles.

If  such  form  or  terms  have  been  so  established, the Trustee shall not be
required  to  authenticate  such  Securities  if  the  issue  of such Securities
pursuant  to  this  Indenture  will  affect  the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner that
is  not  reasonably  acceptable  to  the  Trustee.

     Notwithstanding  the provisions of Section 3.1 and the preceding paragraph,
if  all  Securities  of a series are not to be originally issued at one time, it

                                      -23-
<PAGE>
shall  not  be necessary to deliver the Officers' Certificate otherwise required
pursuant  to  Section  3.1 or the Company Order and Opinion of Counsel otherwise
required  pursuant to such preceding paragraph at or prior to the authentication
of  each  Security of such series if such documents are delivered at or prior to
the  authentication  upon original issuance of the first Security of such series
to  be  issued.

     Each  Security  shall  be  dated  the  date  of  its  authentication.

     No  Security  shall  be  entitled to any benefit under this Indenture or be
valid  or  obligatory  for  any purpose, unless there appears on such Security a
certificate  of  authentication  substantially  in  the form provided for herein
executed  by  the  Trustee  by  the  manual  signature  of one of its authorized
officers  or  signatories,  and  such  certificate  upon  any  Security shall be
conclusive  evidence,  and  the  only evidence, that such Security has been duly
authenticated  and  delivered  hereunder.  Notwithstanding the foregoing, if any
Security  shall have been authenticated and delivered hereunder but never issued
and  sold  by  the  Company,  and the Company shall deliver such Security to the
Trustee  for  cancellation as provided in Section 3.10, for all purposes of this
Indenture  such  Security  shall  be deemed never to have been authenticated and
delivered  hereunder  and  shall  never  be  entitled  to  the  benefits of this
Indenture.

SECTION  3.4.     TEMPORARY  SECURITIES.

     Pending the preparation of definitive Securities of any series, the Company
may  execute, and upon receipt of a Company Order the Trustee shall authenticate
and  deliver,  temporary Securities that are printed, lithographed, typewritten,
mimeographed  or  otherwise  produced,  in  any  authorized  denomination,
substantially  of  the tenor of the definitive Securities of such series in lieu
of  which  they  are  issued  and  with  such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities may
determine,  as  evidenced  by  their  execution  of  such  Securities.

     If  temporary  Securities  of any series are issued, the Company will cause
definitive  Securities of such series to be prepared without unreasonable delay.
After  the  preparation of definitive Securities, the temporary Securities shall
be  exchangeable  for  definitive  Securities  upon  surrender  of the temporary
Securities  at  the  office or agency of the Company designated for that purpose
without  charge  to  the  Holder.  Upon surrender for cancellation of any one or
more  temporary  Securities,  the  Company  shall  execute and the Trustee shall
authenticate  and deliver in exchange therefor one or more definitive securities
of  the  same  series,  of any authorized denominations having the same Original
Issue  Date  and  Stated  Maturity  and  having the same terms as such temporary
Securities.  Until so exchanged, the temporary Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive
Securities  of  such  series.

SECTION  3.5.     GLOBAL  SECURITIES.

     (a)     Each  Global  Security  issued  under  this  Indenture  shall  be
registered  in  the  name  of  the Depositary designated by the Company for such
Global  Security  or  a  nominee  thereof  and delivered to such Depositary or a

                                      -24-
<PAGE>
nominee  thereof  or  custodian  therefor,  and  each such Global Security shall
constitute  a  single  Security  for  all  purposes  of  this  Indenture.

     (b)     Notwithstanding  any  other  provision in this Indenture, no Global
Security  may be exchanged in whole or in part for Securities registered, and no
transfer of a Global Security in whole or in part may be registered, in the name
of  any  Person  other than the Depositary for such Global Security or a nominee
thereof  unless  (i)  such  Depositary  advises the Trustee in writing that such
Depositary  is  no  longer  willing  or  able  to  properly  discharge  its
responsibilities  as  Depositary  with  respect to such Global Security, and the
Company is unable to locate a qualified successor, (ii) the Company executes and
delivers  to  the  Trustee  a  Company  Order stating that the Company elects to
terminate  the  book-entry  system  through the Depositary, or (iii) there shall
have  occurred  and  be  continuing an Event of Default or any event which after
notice  or  lapse  of  time  or  both  would  be  an  Event  of  Default.

     (c)     If  any  Global Security is to be exchanged for other Securities or
cancelled in whole, it shall be surrendered by or on behalf of the Depositary or
its nominee to the Securities Registrar for exchange or cancellation as provided
in  this  Article  III.  If  any  Global  Security  is to be exchanged for other
Securities  or  cancelled  in part, or if another Security is to be exchanged in
whole  or  in part for a beneficial interest in any Global Security, then either
(i) such Global Security shall be so surrendered for exchange or cancellation as
provided  in  this  Article  III  or  (ii) the principal amount thereof shall be
reduced,  subject to Section 3.6(b)(iii), or increased by an amount equal to the
portion  thereof  to  be  so  exchanged  or cancelled, or equal to the principal
amount  of  such  other  Security  to  be so exchanged for a beneficial interest
therein,  as  the case may be, by means of an appropriate adjustment made on the
records  of  the Securities Registrar, whereupon the Trustee, in accordance with
the  Applicable  Procedures,  shall  instruct  the  Depositary or its authorized
representative  to make a corresponding adjustment to its records. Upon any such
surrender  or  adjustment of a Global Security by the Depositary, accompanied by
registration  instructions,  the Trustee shall, subject to Section 3.6(b) and as
otherwise  provided in this Article III, authenticate and deliver any Securities
issuable  in  exchange  for  such  Global  Security  (or any portion thereof) in
accordance  with  the  instructions of the Depositary.  The Trustee shall not be
liable  for any delay in delivery of such instructions and may conclusively rely
on,  and  shall  be  fully  protected  in  relying  on,  such  instructions.

     (d)     Every  Security  authenticated  and  delivered upon registration of
transfer  of, or in exchange for or in lieu of, a Global Security or any portion
thereof, whether pursuant to this Article III, Section 9.6 or 11.6 or otherwise,
shall  be  authenticated  and  delivered  in the form of, and shall be, a Global
Security,  unless such Security is registered in the name of a Person other than
the  Depositary  for  such  Global  Security  or  a  nominee  thereof.

     (e)     The  Depositary or its nominee, as the registered owner of a Global
Security,  shall  be  the  Holder of such Global Security for all purposes under
this  Indenture  and  the  Securities,  and  owners of beneficial interests in a
Global Security shall hold such interests pursuant to the Applicable Procedures.
Accordingly,  any such owner's beneficial interest in a Global Security shall be

                                      -25-
<PAGE>
shown only on, and the transfer of such interest shall be effected only through,
records  maintained  by  the  Depositary  or  its nominee or agent.  Neither the
Trustee  nor the Securities Registrar shall have any liability in respect of any
transfers  effected  by  the  Depositary.

     (f)     The  rights  of owners of beneficial interests in a Global Security
shall  be  exercised  only  through the Depositary and shall be limited to those
established  by law and agreements between such owners and the Depositary and/or
its  Agent  Members.

SECTION  3.6.     REGISTRATION,  TRANSFER  AND  EXCHANGE  GENERALLY;  CERTAIN
TRANSFERS  AND  EXCHANGES.

     (a)     The Company shall cause to be kept at the Corporate Trust Office of
the  Trustee  a  register in which, subject to such reasonable regulations as it
may  prescribe, the Company shall provide for the registration of Securities and
transfers  of  Securities.  Such register is herein sometimes referred to as the
"Securities  Register."  The  Trustee is hereby appointed "Securities Registrar"
 --------------------                                      --------------------
for  the purpose of registering Securities and transfers of Securities as herein
provided.

     Upon  surrender for registration of transfer of any Security at the offices
or  agencies  of  the  Company  designated  for  that purpose, the Company shall
execute,  and  the  Trustee  shall  authenticate and deliver, in the name of the
designated  transferee  or  transferees,  one or more new Securities of the same
series  of  any  authorized denominations of like tenor and principal amount and
bearing  such  restrictive  legends  as  may  be  required  by  this  Indenture.

     At  the  option  of  the  Holder,  Securities  may  be  exchanged for other
Securities of the same series in any authorized denominations, of like tenor and
aggregate  principal  amount  and  bearing  such  restrictive  legends as may be
required  by this Indenture, upon surrender of the Securities to be exchanged at
such office or agency.  Whenever any securities are so surrendered for exchange,
the  Company  shall execute, and the Trustee shall authenticate and deliver, the
Securities  that  the  Holder  making  the  exchange  is  entitled  to  receive.

     All  Securities issued upon any transfer or exchange of Securities shall be
the  valid obligations of the Company, evidencing the same debt, and entitled to
the  same benefits under this Indenture, as the Securities surrendered upon such
transfer  or  exchange.

     Every  Security presented or surrendered for transfer or exchange shall (if
so  required  by the Company or the Trustee) be duly endorsed, or be accompanied
by  a written instrument of transfer in form satisfactory to the Company and the
Securities  Registrar,  duly  executed  by  the  Holder thereof or such Holder's
attorney  duly  authorized  in  writing.

                                      -26-
<PAGE>
     No service charge shall be made to a Holder for any transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover any
tax  or  other  governmental  charge  that may be imposed in connection with any
transfer  or  exchange  of  Securities.

     Neither  the  Company  nor  the  Trustee shall be required, pursuant to the
provisions  of  this Section, (i) to issue, register the transfer of or exchange
any  Security of any series during a period beginning at the opening of business
15  days before the day of selection for redemption of Securities of that series
pursuant to Article XI and ending at the close of business on the day of mailing
of the notice of redemption, or (ii) to register the transfer of or exchange any
Security  so selected for redemption in whole or in part, except, in the case of
any  such  Security  to  be  redeemed  in  part,  any  portion thereof not to be
redeemed.

     (b)     Certain  Transfers  and  Exchanges.  Notwithstanding  any  other
provision  of  this  Indenture,  transfers  and  exchanges  of  Securities  and
beneficial  interests in a Global Security shall be made only in accordance with
this  Section  3.6(b).

          (i)     Restricted Non-Global Security to Global Security.  If the
     Holder  of  a  Restricted Security (other than a Global Security) wishes at
     any  time  to  transfer all or any portion of such Security to a Person who
     wishes  to  take delivery thereof in the form of a beneficial interest in a
     Global  Security, such transfer may be effected only in accordance with the
     provisions  of this clause (b)(i) and subject to the Applicable Procedures.
     Upon  receipt  by the Securities Registrar of (A) such Security as provided
     in Section 3.6(a) and instructions satisfactory to the Securities Registrar
     directing  that a beneficial interest in the Global Security in a specified
     principal  amount not greater than the principal amount of such Security be
     credited  to  a  specified  Agent  Member's  account  and  (B) a Restricted
     Securities  Certificate  duly  executed  by  such  Holder  or such Holder's
     attorney  duly  authorized  in writing, then the Securities Registrar shall
     cancel  such  Security  (and  issue  a  new  Security  in  respect  of  any
     untransferred portion thereof) as provided in Section 3.10 and increase the
     aggregate  principal  amount  of  the  Global  Security  by  the  specified
     principal  amount  as  provided  in  Section  3.5(c).

          (ii)     Non-Global Security to Non-Global Security.  A Security that
     is  not  a  Global  Security  may be transferred, in whole or in part, to a
     Person  who  takes  delivery  in the form of another Security that is not a
     Global  Security  as  provided  in  Section  3.6(a),  provided  that if the
     Security  to  be  transferred in whole or in part is a Restricted Security,
     the  Securities  Registrar  shall  have  received  a  Restricted Securities
     Certificate  duly  executed  by  the  transferor  Holder  or  such Holder's
     attorney duly authorized in writing and the Securities Registrar shall only
     be  required  to  register  the  transfer  of  such  Restricted  Securities
     Certificate  upon  direction  from  the  Company  that  such  transfer  is
     permissible.

                                      -27-
<PAGE>
          (iii)    Exchanges  Between  Global  Security and Non-Global Security.
     A  beneficial interest in a Global Security may be exchanged for a Security
     that  is  not  a  Global  Security  as  provided  in  Section  3.5.

          (iv)     Certain  Initial  Transfers of Non-Global Securities.  In the
     case  of  Securities initially issued other than in global form, an initial
     transfer or exchange of such Securities that does not involve any change in
     beneficial ownership may be made to an institutional accredited investor or
     investors  as  if such transfer or exchange were not an initial transfer or
     exchange;  provided  that  written  certification  shall be provided by the
     transferee  and  transferor  of such Securities to the Securities Registrar
     that  such  transfer  or  exchange  does not involve a change in beneficial
     ownership.

          (v)     Limitations Relating to Principal Amount.  Notwithstanding any
     other  provision  of  this  Indenture  and  unless  otherwise  specified as
     permitted by Section 3.1; Securities or portions thereof may be transferred
     or  exchanged  only in principal amounts of not less than $1,000.00. To the
     fullest extent permitted by applicable law, any transfer, exchange or other
     disposition  of Securities in contravention of this Section 3.6(b)(v) shall
     be deemed to be void and of no legal effect whatsoever, any such transferee
     shall be deemed not to be the Holder or owner of any beneficial interest in
     such  Securities  for any purpose, including but not limited to the receipt
     of interest payable on such Securities, and such transferee shall be deemed
     to  have  no  interest  whatsoever  in  such Securities and, the Securities
     Registrar  shall  not record any such transfer in the Securities Registrar.

SECTION  3.7.     MUTILATED,  LOST  AND  STOLEN  SECURITIES.

     If  any mutilated Security is surrendered to the Trustee together with such
security, or indemnity, and/or other assurance as may be required by the Company
or  the Trustee, in their discretion, to save each of them harmless, the Company
shall  execute  and  the  Trustee  shall  authenticate  and  deliver in exchange
therefor  a  new  Security  of  the  same  series,  of  like tenor and aggregate
principal  amount,  bearing  the  same  legends,  and  bearing  a  number  not
contemporaneously  outstanding.

     If  there shall be delivered to the Company and to the Trustee (i) evidence
to  their  satisfaction  of  the destruction, loss or theft of any Security, and
(ii) such security, indemnity and/or other assurance as may be required by them,
in  their  discretion,  to  save  each of them harmless, then, in the absence of
notice  to  the Company or the Trustee that such Security has been acquired by a
bona  fide purchaser, the Company shall execute and upon its request the Trustee
shall  authenticate  and  deliver, in lieu of any such destroyed, lost or stolen
Security,  a new Security of the same series, of like tenor and principal amount
and  bearing  the  same  legends as such destroyed, lost or stolen Security, and
bearing  a  number  not  contemporaneously  Outstanding.

                                      -28-
<PAGE>
     If  any such mutilated, destroyed, lost or stolen Security has become or is
about  to  become due and payable, the Company in its discretion may, instead of
issuing  a  new  Security,  pay  such  Security.

     Upon  the  issuance of any new Security under this Section 3.7, the Company
may  require  the  payment  of  a  sum  sufficient  to  cover  any  tax or other
governmental  charge  that  may  be  imposed  in  relation thereto and any other
expenses  (including  the fees and expenses of the Trustee) connected therewith.

     Every  new  Security  issued  pursuant  to  this  Section  in  lieu  of any
destroyed,  lost  or  stolen  Security  shall  constitute an original additional
contractual  obligation  of  the  Company, whether or not the destroyed, lost or
stolen  Security  shall  be  at  any  time  enforceable  by anyone, and shall be
entitled  to all the benefits of this Indenture equally and proportionately with
any  and  all  other  Securities  of  such  series  duly  issued  hereunder.

     The  provisions  of  this  Section are exclusive and shall preclude (to the
extent  lawful) all other rights and remedies with respect to the replacement or
payment  of  mutilated,  destroyed,  lost  or  stolen  Securities.

SECTION  3.8.     PAYMENT  OF  INTEREST AND ADDITIONAL INTEREST; INTEREST RIGHTS
PRESERVED.

     Interest  and  Additional  Interest  on  any Security of any series that is
payable,  and  is  punctually paid or duly provided for, on any Interest Payment
Date,  shall  be  paid to the Person in whose name that Security (or one or more
Predecessor  Securities)  is  registered at the close of business on the Regular
Record  Date  for  such interest in respect of Securities of such series, except
that,  unless  otherwise  provided  in  the  Securities of such series, interest
payable  on  the Stated Maturity of the principal of a Security shall be paid to
the  Person  to  whom principal is paid.  The initial payment of interest on any
Security  of  any  series  that  is issued between a Regular Record Date and the
related  Interest  Payment Date shall be payable as provided in such Security or
in  the  Board  Resolution  pursuant  to Section 3.1 with respect to the related
series  of  Securities.

     Any  interest  on  any  Security that is due and payable, but is not timely
paid  or  duly provided for, on any Interest Payment Date for Securities of such
series (herein called "Defaulted Interest"), shall forthwith cease to be payable
                       ------------------
to the registered Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its
election  in  each  case,  as  provided  in  clause  (1)  or  (2)  below:

               (1)     The  Company  may  elect to make payment of any Defaulted
     Interest  to  the  Persons  in whose names the Securities of such series in
     respect  of  which  interest is in default (or their respective Predecessor
     Securities)  are  registered  at  the close of business on a Special Record
     Date  for  the  payment of such Defaulted Interest, which shall be fixed in
     the  following  manner.  The Company shall notify the Trustee in writing of
     the  amount  of Defaulted Interest proposed to be paid on each Security and
     the  date  of  the proposed payment, and at the same time the Company shall

                                      -29-
<PAGE>
     deposit  with  the Trustee an amount of money equal to the aggregate amount
     proposed  to  be  paid  in respect of such Defaulted Interest or shall make
     arrangements satisfactory to the Trustee for such deposit prior to the date
     of the  proposed payment, such money when deposited to be held in trust for
     the  benefit  of the Persons entitled to such Defaulted Interest as in this
     clause provided. Thereupon, the Trustee shall fix a Special Record Date for
     the  payment  of  such  Defaulted Interest, which shall be not more than 15
     days  and  not  less than 10 days prior to the date of the proposed payment
     and not less than 10 days after the receipt by the Trustee of the notice of
     the proposed payment. The Trustee shall promptly notify the Company of such
     Special  Record  Date  and,  in the name and at the expense of the Company,
     shall  cause  notice of the proposed payment of such Defaulted Interest and
     the  Special  Record  Date  therefor  to  be  mailed,  first class, postage
     prepaid, to each Holder of a Security of such series at the address of such
     Holder as it appears in the Securities Register not less than 10 days prior
     to  such  Special  Record  Date. The Trustee may, in its discretion, in the
     name  and  at  the  expense  of  the  Company, cause a similar notice to be
     published  at  least  once  in  a  newspaper,  customarily published in the
     English  language  on  each  Business Day and of general circulation in the
     Borough  of Manhattan, The City of New York, New York, but such publication
     shall  not  be  a  condition precedent to the establishment of such Special
     Record  Date. Notice of the proposed payment of such Defaulted Interest and
     the  Special  Record  Date  therefor  having been mailed as aforesaid, such
     Defaulted  Interest  shall  be  paid  to  the  Persons  in  whose names the
     Securities  of such series (or their respective Predecessor Securities) are
     registered  on  such  Special  Record  Date  and shall no longer be payable
     pursuant  to  the  following  clause  (2).

               (2)     The Company may make payment of any Defaulted Interest in
     any  other  lawful  manner  not  inconsistent  with the requirements of any
     securities  exchange  on  which  the Securities of the series in respect of
     which  interest is in default may be listed and, upon such notice as may be
     required  by  such  exchange  (or  by the Trustee if the Securities are not
     listed),  if,  after  notice  given  by  the  Company to the Trustee of the
     proposed  payment pursuant to this clause (2), such payment shall be deemed
     practicable  by  the  Trustee.

Subject  to  the  foregoing  provisions of this Section, each Security delivered
under this Indenture upon transfer of or in exchange for or in lieu of any other
Security  shall  carry  the rights to interest accrued and unpaid, and to accrue
interest,  that  were  carried  by  such  other  Security.

SECTION  3.9.     PERSONS  DEEMED  OWNERS.

     The  Company, the Trustee and any agent of the Company or the Trustee shall
treat  the  Person in whose name any Security is registered as the owner of such
Security  for  the  purpose of receiving payment of principal of and (subject to
Section  3.8)  any  interest  on  such  Security  and  for  all  other  purposes
whatsoever,  whether  or  not such Security be overdue, and neither the Company,
the  Trustee  nor  any  agent of the Company or the Trustee shall be affected by
notice  to  the  contrary.

                                      -30-
<PAGE>
     No  holder  of  any  beneficial interest in any Global Security held on its
behalf  by  a Depositary shall have any rights under this Indenture with respect
to  such Global Security, and such Depositary may be treated by the Company, the
Trustee  and any agent of the Company or the Trustee as the owner of such Global
Security  for all purposes.  Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving  effect  to  any  written  certification,  proxy  or  other authorization
furnished by a Depositary or impair, as between a Depositary and such holders of
beneficial  interests,  the  operation  of  customary  practices  governing  the
exercise  of  the  rights  of  the  Depositary (or its nominee) as Holder of any
Security.

SECTION  3.10.     CANCELLATION.

     All  Securities  surrendered  for payment, redemption, transfer or exchange
shall,  if surrendered to any Person other than the Trustee, be delivered to the
Trustee,  and  any  such  Securities  and Securities surrendered directly to the
Trustee  for any such purpose shall be promptly canceled by it.  Notwithstanding
any  other  provisions of this Indenture, the Company may at any time deliver to
the  Trustee  for  cancellation  any  Securities  previously  authenticated  and
delivered hereunder that the Company may have acquired in any manner whatsoever,
and  all  Securities so delivered shall be promptly canceled by the Trustee.  No
Securities  shall  be authenticated in lieu of or in exchange for any Securities
canceled  as  provided  in  this  Section, except as expressly permitted by this
Indenture.  All  canceled  Securities  shall be destroyed by the Trustee and the
Trustee  shall  deliver  to  the  Company  a  certificate  of  such destruction.

SECTION  3.11.     COMPUTATION  OF  INTEREST.

     Except as otherwise specified as contemplated by Section 3.1 for Securities
of any series, interest on the Securities of each series for any period shall be
computed  on  the basis of a 360-day year of twelve 30-day months and the actual
number  of  days  elapsed  in  any  period less than a full month in any period.
Interest on the Securities of each series for a full period shall be computed by
multiplying  the  rate  per  annum  by a fraction, the numerator of which is the
number  of  months  in  such  full  period  and  the denominator of which is 12.

SECTION  3.12.     DEFERRALS  OF  INTEREST  PAYMENT  DATES.

     If  specified as contemplated by Section 2.1 or Section 3.1 with respect to
the  Securities  of  a  particular  series,  so  long as no Event of Default has
occurred and is continuing, the Company shall have the right, at any time during
the  term  of such series, from time to time to defer the payment of interest on
such  Securities  for such period or periods (each an "Extension Period") not to
                                                       ----------------
exceed  the  number  of consecutive quarterly, semi-annual or other periods that
equal  five  years with respect to each Extension Period, during which Extension
Periods  the Company shall, if so specified as contemplated by Section 3.1, have
the  right  to  make no payments or partial payments of interest on any Interest
Payment  Date.  No  Extension  Period shall end on a date other than an Interest

                                      -31-
<PAGE>
Payment  Date.  At  the  end of any such Extension Period, the Company shall pay
all interest then accrued and unpaid on the Securities (together with Additional
Interest  thereon,  if  any,  at  the  rate specified for the Securities of such
series  to  the  extent permitted by applicable law); provided, however, that no
Extension Period shall extend beyond the Stated Maturity of the principal of the
Securities  of such series; and provided further, however, that, during any such
Extension  Period,  the  Company  shall  not (i) declare or pay any dividends or
distributions  on,  or  redeem,  purchase, acquire or make a liquidation payment
with respect to, any of the Company's capital stock, or (ii) make any payment of
principal  of  or interest or premium, if any, on or repay, repurchase or redeem
any  debt securities of the Company that rank pari passu in all respects with or
junior in interest to the Securities of such series (other than (a) repurchases,
redemptions  or  other acquisitions of shares of capital stock of the Company in
connection  with  any  employment  contract,  benefit or incentive plan or other
similar  arrangement  with  or  for  the  benefit  of any one or more employees,
officers,  directors  or  consultants  of  the  Company  or its Subsidiaries, in
connection  with a dividend reinvestment or stock purchase plan or in connection
with  the  issuance  of  capital stock of the Company (or securities convertible
into  or  exercisable for such capital stock) as consideration in an acquisition
transaction  entered  into  prior  to  the applicable Extension Period, (b) as a
result  of  an  exchange  or  conversion of any class or series of the Company's
capital  stock  (or  any  capital  stock of a Subsidiary of the Company) for any
class  or series of the Company's capital stock or of any class or series of the
Company's  indebtedness  for any class or series of the Company's capital stock,
(c)  the  purchase  of  fractional  interests in shares of the Company's capital
stock pursuant to the conversion or exchange provisions of such capital stock or
the  security being converted or exchanged, (d) any declaration of a dividend in
connection  with  any  Rights  Plan,  or  the issuance of rights, stock or other
property  under  any  Rights  Plan,  or  the  redemption or repurchase of rights
pursuant  thereto,  (e)  any dividend in the form of stock, warrants, options or
other  rights  where  the  dividend stock or the stock issuable upon exercise of
such  warrants,  options  or other rights is the same stock as that on which the
dividend  is  being paid or ranks pari passu with or junior to such stock or (f)
payments  by  the Company under the Guarantee).  Prior to the termination of any
such  Extension  Period,  the Company may further defer the payment of interest,
provided  that  no  Event of Default has occurred and is continuing and provided
further,  that  no Extension Period shall exceed the period or periods specified
in  such  Securities, extend beyond the Stated Maturity of the principal of such
Securities  or  end  on  a  date  other than an Interest Payment Date.  Upon the
termination of any such Extension Period and upon the payment of all accrued and
unpaid  interest  and  any  Additional Interest then due on any Interest Payment
Date,  the  Company  may  elect  to begin a new Extension Period, subject to the
above  conditions.  No  interest or Additional Interest shall be due and payable
during  an  Extension Period, except at the end thereof, but each installment of
interest  that  would  otherwise have been due and payable during such Extension
Period  shall bear Additional Interest as and to the extent specified by Section
3.1.  The  Company  shall  give the Holders of the Securities of such series and
the  Trustee  notice of its election to begin any such Extension Period at least
one  Business  Day  prior  to the next succeeding Interest Payment Date on which
interest on Securities of such series would be payable but for such deferral or,
with respect to any Securities of a series issued to an Issuer Trust, so long as
any  such  Securities  are  held by such Issuer Trust, at least one Business Day
prior  to  the earlier of (i) the next succeeding date on which Distributions on
the  Capital  Securities  of  such  Issuer  Trust  would be payable but for such

                                      -32-
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deferral,  and  (ii) the record date for determining the holders of such Capital
Securities  entitled  to  such  Distributions  on  the  Capital  Securities.

     The  Trustee  shall promptly give notice of the Company's election to begin
any  such  Extension Period to the Holders of the Outstanding Securities of such
series.

SECTION  3.13.     RIGHT  OF  SET-OFF.

     With  respect  to  the Securities of a series initially issued to an Issuer
Trust,  notwithstanding  anything to the contrary herein, the Company shall have
the  right to set off any payment it is otherwise required to make in respect of
any  such  Security  to  the  extent  the  Company  has  theretofore made, or is
concurrently  on  the date of such payment making, a payment under the Guarantee
relating  to  such  Security or to a holder of Capital Securities pursuant to an
action  undertaken  under  Section  5.8  of  this  Indenture.

SECTION  3.14.     AGREED  TAX  TREATMENT.

     Each  Security  issued hereunder shall provide that the Company and, by its
acceptance  of  a  Security or a beneficial interest therein, the Holder of, and
any  Person that acquires a beneficial interest in, such Security agree that for
United  States  Federal,  state  and local tax purposes it is intended that such
Security  constitutes  indebtedness.

SECTION  3.15.     SHORTENING  OR  EXTENSION  OF  STATED  MATURITY.

     As provided by Section 2.1 or Section 3.1 with respect to the Securities of
a  particular series, the Company shall have the right to (i) shorten the Stated
Maturity  of  the  principal of the Securities of such series at any time to any
date  and  (ii) extend the Stated Maturity of the principal of the Securities of
such  series at any time at its election for one or more periods, provided that,
if the Company elects to exercise its right to extend the Stated Maturity of the
principal of the Securities of such series pursuant to clause (ii) above, at the
time  such election is made and at the time of extension, such conditions as may
be specified in such Securities shall have been satisfied, and provided further,
that  no  such reduction or extension of the Stated Maturity shall be or cause a
Capital  Treatment  Event.

SECTION  3.16.     CUSIP  NUMBERS.

     The  Company,  in  issuing the Securities, may use "CUSIP" numbers (if then
generally  in  use  or  if a CUSIP number has been obtained for the Securities),
and,  if  so,  the Trustee shall use "CUSIP" numbers in notice of redemption and
other  similar  or  related materials as a convenience to Holders; provided that
any  such  notice or other materials may state that no representation is made as

                                      -33-
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to  the  correctness  of  such numbers either as printed on the Securities or as
contained  in  any notice of redemption or other materials and that reliance may
be  placed  only  on the other identification numbers printed on the Securities,
and  any  such  redemption shall not be affected by any defect in or omission of
such  numbers.

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

SECTION  4.1.     SATISFACTION  AND  DISCHARGE  OF  INDENTURE.

     This  Indenture  shall, upon Company Request, cease to be of further effect
(except  as  to  any surviving rights of registration of transfer or exchange of
Securities  herein  expressly  provided  for  and  as otherwise provided in this
Section  4.1)  and  the Trustee, on demand of and at the expense of the Company,
shall  execute  proper  instruments  acknowledging satisfaction and discharge of
this  Indenture,  when

          (1)  either

               (A)     all  Securities  theretofore  authenticated and delivered
          (other  than  (i)  Securities that have been destroyed, lost or stolen
          and  that  have  been  replaced or paid as provided in Section 3.7 and
          (ii) Securities for whose payment money has theretofore been deposited
          in trust or segregated and held in trust by the Company and thereafter
          repaid  to  the  Company or discharged from such trust, as provided in
          Section  10.3) have been delivered to the Trustee for cancellation; or

               (B)     all  such  Securities  not  theretofore  delivered to the
          Trustee  for  cancellation

                    (i)     have  become  due  and  payable,  or

                    (ii)    will  become  due  and  payable  at  their  Stated
               Maturity  within  one  year  of  the  date  of  deposit,  or

                    (iii)   are  to  be  called  for  redemption within one year
               under  arrangements satisfactory to the Trustee for the giving of
               notice  of  redemption  by  the  Trustee  in the name, and at the
               expense,  of  the  Company,

     and  the Company, in the case of subclause (B)(i), (ii) or (iii) above, has
     deposited  or  caused  to  be  deposited with the Trustee as trust funds in
     trust for such purpose an amount in the currency or currencies in which the
     Securities  of  such series are payable sufficient to pay and discharge the
     entire  indebtedness  on  such  Securities not theretofore delivered to the
     Trustee  for  cancellation,  for  the  principal  (and premium, if any) and
     interest  (including  Additional  Interest,  if  any)  to  the date of such

                                      -34-
<PAGE>
     deposit  (in the case of Securities that have become due and payable) or to
     the  Stated  Maturity  or  Redemption  Date,  as  the  case  may  be;

          (2)     the  Company  has  paid or caused to be paid all other sums
     payable  hereunder  by  the  Company;  and

          (3)     the  Company  has  delivered  to  the  Trustee  an  Officers'
     Certificate  and  an  Opinion  of  Counsel each stating that all conditions
     precedent  herein  provided  relating  to the satisfaction and discharge of
     this  Indenture  have  been  complied  with.

     Notwithstanding  the  satisfaction  and  discharge  of  this Indenture, the
     obligations  of  the  Company  to  the  Trustee  under  Section  6.7,  the
     obligations  of  the Trustee to any Authenticating Agent under Section 6.14
     and,  if  money  shall  have  been  deposited  with the Trustee pursuant to
     subclause (B) of clause (1) of this Section, the obligations of the Trustee
     under  Section  4.2  and  the last paragraph of Section 10.3 shall survive.

Notwithstanding  the foregoing, in any case where the Securities are not due and
payable  and  have  not been called for redemption, such Securities shall remain
recourse  obligations  of  the  Company.

SECTION  4.2     APPLICATION  OF  TRUST  MONEY.

     Subject  to the provisions of the last paragraph of Section 10.3, all money
deposited  with  the  Trustee pursuant to Section 4.1 shall be held in trust and
applied  by the Trustee, in accordance with the provisions of the Securities and
this  Indenture,  to  the  payment,  either directly or through any Paying Agent
(including  the  Company  acting  as  its  own  Paying Agent) as the Trustee may
determine,  to  the  Persons entitled thereto, of the principal (and premium, if
any)  and  interest  (including  Additional Interest, if any) for the payment of
which  such  money  or  obligations  have been deposited with or received by the
Trustee.

                                    ARTICLE V
                                    REMEDIES

SECTION  5.1.     EVENTS  OF  DEFAULT.

     "Event  of Default," wherever used herein with respect to the Securities of
any  series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any  order,  rule  or  regulation  of  any administrative or governmental body):

                                      -35-
<PAGE>
          (1)     default  in  the  payment of any interest upon any Security of
     that  series, including any Additional Interest in respect thereof, when it
     becomes due and payable, and continuance of such default for a period of 30
     days  (subject to the deferral of any due date in the case of any Extension
     Period);  or

          (2)     default  in  the  payment  of the principal of (or premium, if
     any,  on)  any Security of that series at its Maturity, upon redemption, by
     declaration  of  acceleration  or  otherwise;  or

          (3)     failure  on the part of the Company duly to observe or perform
     in  any  material  respect  any other of the covenants or agreements on the
     part  of  the Company in the Securities of that series or in this Indenture
     for  a  period  of  90  days after the date on which written notice of such
     failure, requiring the Company to remedy the same, shall have been received
     by the Company from (i) the Trustee by registered or certified mail or (ii)
     Holders  of  at  least 25% in aggregate principal amount of the Outstanding
     Securities  of  that  series;  or

          (4)     entry  by a court having jurisdiction in the premises of (A) a
     decree or order for relief in respect of the Company in an involuntary case
     or proceeding under the Bankruptcy Code, or any applicable federal or state
     bankruptcy, insolvency, reorganization or other similar law or (B) a decree
     or  order  adjudging  the  Company a bankrupt or insolvent, or approving as
     properly  filed  a petition seeking reorganization, arrangement, adjustment
     or composition of or in respect of the Company under any applicable federal
     or  state  law  appointing  a custodian, receiver, conservator, liquidator,
     assignee, trustee, sequestrator or other similar official of the Company or
     of  substantially  all  of  the  property  of  the Company, or ordering the
     winding-up or liquidation of its affairs, and in the case of (A) or (B) the
     continuance of any such decree of order for relief or any such other decree
     or  order  unstayed  and  in effect for a period of 60 consecutive days; or

          (5)     (A)  the  commencement  by  the Company of a voluntary case or
     proceeding  under  the  Bankruptcy Code, or any applicable federal or state
     bankruptcy, insolvency, reorganization or other similar law or of any other
     case  or  proceeding  to be adjudicated a bankrupt or insolvent, or (B) the
     consent  by  the  Company  to  the entry of a decree of order for relief in
     respect of itself in an involuntary case or proceeding under the Bankruptcy
     Code  or  any  applicable  federal  or  state  bankruptcy,  insolvency,
     reorganization  or  other  similar  law  or  to  the  commencement  of  any
     bankruptcy or insolvency case or proceeding against the Company, or (C) the
     filing  by  the  Company  of  a  petition  or  answer  or  consent  seeking
     reorganization  or  relief under any applicable federal or state law or (D)
     the  consent  by  the  Company  to  the  filing  of such petition or to the
     appointment  of or taking possession by a custodian, receiver, conservator,
     liquidator,  assignee,  trustee,  sequestrator or other similar official of
     the  Company or of all or substantially all of the property of the Company,
     or  (E)  the  making  by  the  Company  of an assignment for the benefit of
     creditors;  or

                                      -36-
<PAGE>
          (6)     any other Event of Default provided with respect to Securities
     of  that  series.

SECTION  5.2.     ACCELERATION  OF  MATURITY;  RESCISSION  AND  ANNULMENT.

     If an Event of Default (other than an Event of Default specified in Section
5.1(4)  or  5.1(5))  with  respect  to  Securities  of  any  series  at the time
Outstanding  occurs and is continuing, then, and in every such case, the Trustee
or  the  Holders  of  not  less  than  25%  in aggregate principal amount of the
Outstanding  Securities  of that series may declare the principal amount (or, if
the  Securities  of  that  series  are  Discount Securities, such portion of the
principal  amount  as  may  be specified in the terms of that series) of all the
Securities  of  that  series  to  be due and payable immediately, by a notice in
writing  to the Company (and to the Trustee if given by Holders), provided that,
in the case of the Securities of a series issued to an Issuer Trust, if, upon an
Event  of  Default, the Trustee or the Holders of not less than 25% in aggregate
principal  amount  of  the Outstanding Securities of such series fail to declare
the principal of all the Outstanding Securities of such series to be immediately
due  and payable, the holders of at least 25% in aggregate Liquidation Amount of
the  related  series  of  Capital  Securities  issued  by such Issuer Trust then
outstanding shall have the right to make such declaration by a notice in writing
to  the  Company  and  the Trustee; and upon any such declaration such principal
amount  (or  specified  portion  thereof) of and the accrued interest (including
Additional  Interest,  if any) on all the Securities of such series shall become
immediately  due  and  payable.  If  an  Event  of Default specified in Sections
5.1(4)  or  5.1(5)  with  respect  to  Securities  of  any  series  at  the time
Outstanding  occurs,  the  principal amount of all the Securities of such series
(or,  if  the Securities of such series are Discount Securities, such portion of
the principal amount of such Securities as may be specified by the terms of that
series)  shall automatically, and without any declaration or other action on the
part  of the Trustee or any Holder, become immediately due and payable.  Payment
of principal and interest (including any Additional Interest) on such Securities
shall remain subordinated to the extent provided in Article XIII notwithstanding
that  such  amount  shall become immediately due and payable as herein provided.

     At  any  time  after  such  a  declaration  of acceleration with respect to
Securities  of  any  series  has  been  made and before a judgment or decree for
payment  of  the  money  due  has  been  obtained  by the Trustee as hereinafter
provided  in  this  Article,  the  Holders  of a majority in aggregate principal
amount  of  the  Outstanding Securities of that series, by written notice to the
Company  and  the  Trustee,  may  rescind  and  annul  such  declaration and its
consequences  and  waive  the  Event  of  Default  if:

          (1)     the  Company  has  paid  or  deposited  with the Trustee a sum
     sufficient  to  pay:

               (A)     all overdue installments of interest on all Securities of
          such  series;

               (B)     any  accrued  Additional  Interest,  if  any,  on  all
          Securities  of  such  series;

                                      -37-
<PAGE>
               (C)     the principal of (and premium, if any, on) any Securities
          of such series that have become due otherwise than by such declaration
          of  acceleration and interest and Additional Interest, if any, thereon
          at  the  rate  borne  by  the  Securities;  and

               (D)     all  sums  paid  or advanced by the Trustee hereunder and
          the  reasonable  compensation, expenses, disbursements and advances of
          the  Trustee,  its  agents  and  counsel;  and

          (2)     all  Events  of  Default  with  respect  to Securities of that
     series,  other  than the non-payment of the principal of Securities of that
     series  that has become due solely by such acceleration, have been cured or
     waived  as  provided  in  Section  5.13.

     In  the case of Securities of a series initially issued to an Issuer Trust,
if  the Holders of such Securities fail to annul such declaration and waive such
default,  the  holders  of  a  majority  in  aggregate Liquidation Amount of the
related  series  of  Capital  Securities  issued  by  such  Issuer  Trust  then
outstanding  shall also have the right to rescind and annul such declaration and
its  consequences  by  written notice to the Company and the Trustee, subject to
the  satisfaction  of  the  conditions  set  forth  in the immediately preceding
clauses  (1)  and  (2)  above  of  this  section  5.2.

No  such rescission or waiver shall affect or apply to any subsequent default or
Event  of  Default  or  impair  any  right  consequent  thereon.

SECTION  5.3.     COLLECTION  OF  INDEBTEDNESS  AND  SUITS  FOR  ENFORCEMENT  BY
TRUSTEE.

     The  Company  covenants  that  if:

          (1)     default  is made in the payment of any installment of interest
     (including  Additional Interest, if any) on any Security of any series when
     such  interest  becomes  due  and  payable and such default continues for a
     period  of  30  days,  or

          (2)     default  is  made  in  the  payment  of  the principal of (and
     premium,  if  any,  on)  any  Security  at  the  Maturity  thereof,

     the  Company  will, upon demand of the Trustee, pay to the Trustee, for the
     benefit  of  the  Holders of such Securities, the whole amount then due and
     payable on such Securities for principal (and premium, if any) and interest
     (including  Additional  Interest,  if  any),  and, in addition thereto, all
     amounts  owing  the  Trustee  under  Section  6.7.

     If  the  Company  fails to pay such amounts forthwith upon such demand, the
Trustee,  in  its  own  name and as trustee of an express trust, may institute a
judicial  proceeding  for  the collection of the sums so due and unpaid, and may

                                      -38-
<PAGE>
prosecute  such proceeding to judgment or final decree, and may enforce the same
against  the  Company  or any other obligor upon such Securities and collect the
monies  adjudged  or  decreed to be payable in the manner provided by law out of
the  property  of the Company or any other obligor upon the Securities, wherever
situated.

     If  an Event of Default with respect to Securities of any series occurs and
is  continuing, the Trustee may in its discretion proceed to protect and enforce
its  rights  and  the rights of the Holders of Securities of such series by such
appropriate  judicial  proceedings  as  the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant  or  agreement in this Indenture or in aid of the exercise of any power
granted  herein,  or  to  enforce  any  other  proper  remedy.

SECTION  5.4.     TRUSTEE  MAY  FILE  PROOFS  OF  CLAIM.

     In  case  of  any  receivership,  conservatorship, insolvency, liquidation,
bankruptcy,  reorganization,  arrangement,  adjustment,  composition  or  other
judicial  or  administrative  proceeding  relative  to  the Company or any other
obligor  upon  the  Securities  or  the property of the Company or of such other
obligor  or  their  creditors,

     (a)     the  Trustee  (irrespective  of  whether  the  principal  of  the
Securities  of  any series shall then be due and payable as therein expressed or
by  declaration  or otherwise and irrespective of whether the Trustee shall have
made  any  demand  on  the  Company  for  the  payment of overdue principal (and
premium,  if  any) or interest (including Additional Interest, if any)) shall be
entitled  and  empowered,  by  intervention  in  such  proceeding  or otherwise,

          (i)     to  file  and  prove a claim for the whole amount of principal
     (and  premium, if any) and interest (including Additional Interest, if any)
     owing and unpaid in respect to the Securities and to file such other papers
     or  documents  as  may  be  necessary  or advisable and to take any and all
     actions  as  are  authorized under the Trust Indenture Act in order to have
     the  claims  of the Holders, the Trustee and any predecessor to the Trustee
     under  Section  6.7  allowed  in  any  such  judicial  or  administrative
     proceedings;  and

          (ii)     in particular, the Trustee shall be authorized to collect and
     receive  any  monies  or  other property payable or deliverable on any such
     claims  and  to  distribute  the  same  in accordance with Section 5.6; and

     (b)     any  custodian,  receiver,  conservator,  assignee,  trustee,
liquidator,  sequestrator,  (or  other similar official) in any such judicial or
administrative  proceeding  is  hereby  authorized  by  each Holder to make such
payments  to the Trustee for distribution in accordance with Section 5.6, and in
the event that the Trustee shall consent to the making of such payments directly
to  the  Holders, to pay to the Trustee any amount due to it and any predecessor
Trustee  under  Section  6.7.

                                      -39-
<PAGE>
     Nothing  herein  contained  shall  be  deemed  to  authorize the Trustee to
authorize  or  consent  to  accept  or adopt on behalf of any Holder any plan of
reorganization,  arrangement, adjustment or composition affecting the Securities
or  the  rights  of  any  Holder thereof, or to authorize the Trustee to vote in
respect  of  the  claim of any Holder in any such proceeding; provided, however,
the Trustee may, on behalf of the Holders, vote for the election of a trustee in
bankruptcy  or similar official and be a member of a creditors' or other similar
committee.

SECTION  5.5.  TRUSTEE  MAY  ENFORCE  CLAIM  WITHOUT  POSSESSION  OF SECURITIES.

     All  rights of action and claims under this Indenture or the Securities may
be  prosecuted  and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such  proceeding  instituted  by the Trustee shall be brought in its own name as
trustee  of  an  express  trust,  and any recovery of judgment shall, subject to
Article  XIII  and  after provision for the payment of all the amounts owing the
Trustee  and  any predecessor Trustee under Section 6.7, its agents and counsel,
be  for the ratable benefit of the Holders of the Securities in respect of which
such  judgment  has  been  recovered.

SECTION  5.6  APPLICATION  OF  MONEY  COLLECTED.

     Any  money  or  property  collected  or  to  be applied by the Trustee with
respect  to  a series of Securities pursuant to this Article shall be applied in
the  following  order, at the date or dates fixed by the Trustee and, in case of
the  distribution of such money or property on account of principal (or premium,
if  any)  or interest (including Additional Interest, if any), upon presentation
of the Securities and the notation thereon of the payment if only partially paid
and  upon  surrender  thereof  if  fully  paid:

     FIRST:     To  the  payment  of  all  amounts  due the Trustee and any
predecessor  Trustee  under  Section  6.7;

     SECOND:     Subject to Article XIII, to the payment of all amounts then due
and  unpaid  upon  Securities of such series for principal (and premium, if any)
and  interest (including Additional Interest, if any) in respect of which or for
the  benefit of which such money has been collected, ratably, without preference
or priority of any kind, according to the amounts due and payable on such series
of  Securities  for  principal  (and  premium,  if  any) and interest (including
Additional  Interest,  if  any),  respectively;  and

     THIRD:     The  balance, if any, to the Person or Persons entitled thereto.

SECTION  5.7  LIMITATION  ON  SUITS.

                                      -40-
<PAGE>
     Subject  to  Section  5.8,  no Holder of any Securities of any series shall
have  any right to institute any proceeding, judicial or otherwise, with respect
to  this  Indenture or for the appointment of a receiver, conservator, assignee,
trustee,  liquidator,  sequestrator (or other similar official) or for any other
remedy  hereunder,  unless:

          (1)     An  Event  of Default with respect to Securities of any series
     has  occurred  and is continuing, and the Company has not paid or deposited
     with  the  Trustee  all  amounts  then  payable;

          (2)     such Holder has previously given written notice to the Trustee
     of  a  continuing  Event  of Default with respect to the Securities of that
     series;

          (3)     the Holders of not less than 25% in aggregate principal amount
     of  the  Outstanding  Securities  of  that  series  shall have made written
     request to the Trustee to institute proceedings in respect of such Event of
     Default  in  its  own  name  as  Trustee  hereunder;

          (4)     such  Holder or Holders have offered to the Trustee reasonable
     indemnity  against  the  costs,  expenses and liabilities to be incurred in
     compliance  with  such  request;

          (5)     the  Trustee  for  60  days  after its receipt of such notice,
     request and offer of indemnity has failed to institute any such proceeding;
     and

          (6)     no  direction  inconsistent with such written request has been
     given to the Trustee during such 60-day period by the Holders of a majority
     in aggregate principal amount of the Outstanding Securities of that series;

     it  being understood and intended that no one or more of such Holders shall
     have  any  right in any manner whatever by virtue of, or by availing itself
     of,  any  provision  of  this Indenture to affect, disturb or prejudice the
     rights  of  any  other  Holders  of  Securities, or to obtain or to seek to
     obtain  priority or preference over any other of such Holders or to enforce
     any  right  under  this Indenture, except in the manner herein provided and
     for  the  equal  and  ratable  benefit  of  all  such  Holders.

SECTION  5.8.       UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM
AND  INTEREST;  DIRECT  ACTION  BY  HOLDERS  OF  CAPITAL  SECURITIES.

     Notwithstanding  any  other  provision in this Indenture, the Holder of any
Security  of  any  series  shall  have  the  right,  which  is  absolute  and
unconditional,  to receive payment of the principal of (and premium, if any) and
(subject  to  Sections 3.8 and 3.12) interest (including Additional Interest, if
any)  on  such  Security  on  the respective Stated Maturities expressed in such
Security (or in the case of redemption, on the Redemption Date) and to institute
suit  for  the  enforcement  of  any  such  payment, and such right shall not be
impaired  without  the  consent  of such Holder.  In the case of Securities of a

                                      -41-
<PAGE>
series  issued  to  an Issuer Trust, any registered holder of Capital Securities
issued by such Issuer Trust shall, to the fullest extent permitted by applicable
law,  have  the  right,  upon the occurrence of an Event of Default described in
Sections  5.1(1)  or  5.1(2)  and  subject  to  the same terms and conditions as
provided  in Section 5.7 above, provided the term "Holder" used therein shall be
changed  for  purposes  of  this  sentence  to "holder of Capital Securities" to
institute a suit directly against the Company for enforcement of payment to such
holder  of principal of (premium, if any) and (subject to Sections 3.8 and 3.12)
interest  (including  Additional  Interest,  if  any) on the Securities having a
principal  amount  equal  to  the  aggregate  Liquidation Amount of such Capital
Securities  held  by  such  holder.

SECTION  5.9.     RESTORATION  OF  RIGHTS  AND  REMEDIES.

     If  the  Trustee,  any Holder or any holder of Capital Securities issued by
any  Issuer  Trust  has instituted any proceeding to enforce any right or remedy
under  this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee, such Holder or such
holder  of  Capital  Securities,  then, and in every such case, the Company, the
Trustee,  such  Holders  and such holder of Capital Securities shall, subject to
any  determination in such proceeding, be restored severally and respectively to
their  former positions hereunder, and thereafter all rights and remedies of the
Trustee,  such  Holder  and  such holder of Capital Securities shall continue as
though  no  such  proceeding  had  been  instituted.

SECTION  5.10.       RIGHTS  AND  REMEDIES  CUMULATIVE.

     Except as otherwise provided in the last paragraph of Section 3.7, no right
or  remedy  herein  conferred  upon or reserved to the Trustee or the Holders is
intended  to  be  exclusive  of  any  other right or remedy, and every right and
remedy  shall,  to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or  in  equity or otherwise.  The assertion or employment of any right or remedy
hereunder,  or  otherwise,  shall  not  prevent  the  concurrent  assertion  or
employment  of  any  other  appropriate  right  or  remedy.

SECTION  5.11.     DELAY  OR  OMISSION  NOT  WAIVER.

     No  delay  or  omission  of  the  Trustee,  any Holder of any Security with
respect  to  the  Securities  of the related series or any holder of any Capital
Security to exercise any right or remedy accruing upon any Event of Default with
respect  to  the Securities of the related series shall impair any such right or
remedy  or  constitute  a waiver of any such Event of Default or an acquiescence
therein.

     Every  right  and remedy given by this Article, or by law to the Trustee or
to  the  Holders  and  the  right  and  remedy  given  to the holders of Capital
Securities  by  Sections  5.2 and 5.8 may be exercised from time to time, and as
often  as may be deemed expedient, by the Trustee, the Holders or the holders of
Capital  Securities,  as  the  case  may  be.

                                      -42-
<PAGE>
SECTION  5.12.     CONTROL  BY  HOLDERS.

     The  Holders  of  not less than a majority in aggregate principal amount of
the  Outstanding  Securities  of  any  series shall have the right to direct the
time,  method and place of conducting any proceeding for any remedy available to
the  Trustee  or  exercising  any  trust or power conferred on the Trustee, with
respect  to  the  Securities  of  such  series,  provided  that:

          (1)     such  direction  shall not be in conflict with any rule of law
     or  with  this  Indenture;

          (2)     the  Trustee  may  take  any other action deemed proper by the
     Trustee  that  is  not  inconsistent  with  such  direction;  and

          (3)     subject  to  the  provisions of Section 6.1, the Trustee shall
     have the right to decline to follow such direction if a Responsible Officer
     or  Officers  of  the  Trustee  shall,  in  good  faith, determine that the
     proceeding  so  directed  would  be unjustly prejudicial to the Holders not
     joining  in  any  such  direction  or would involve the Trustee in personal
     liability.

SECTION  5.13.     WAIVER  OF  PAST  DEFAULTS.

     The  Holders  of  not less than a majority in aggregate principal amount of
the  Outstanding  Securities  of any series affected thereby and, in the case of
any Securities of a series initially issued to an Issuer Trust, the holders of a
majority  in  aggregate  Liquidation  Amount of the Capital Securities issued by
such Issuer Trust may waive any past default hereunder and its consequences with
respect  to  such  series,  except  a  default:

          (1)     in  the  payment  of the principal of (and premium, if any) or
     interest  (including  Additional  Interest, if any) on any Security of such
     series  (unless  such default has been cured and the Company has paid to or
     deposited with the Trustee a sum sufficient to pay all matured installments
     of  interest  (including  Additional Interest, if any) and all principal of
     (and  premium, if any, on) all Securities of that series due otherwise than
     by  acceleration);  or

          (2)     in  respect  of  a  covenant  or  provision  hereof that under
     Article IX cannot be modified or amended without the consent of each Holder
     of  any  Outstanding  Security  of  such  series  affected.

     Any  such  waiver shall be deemed to be on behalf of the Holders of all the
Securities  of  such  series,  or  in  the  case  of  any Securities of a series
initially  issued  to an Issuer Trust, shall be deemed to be a waiver by holders
of  Capital  Securities  issued  by such Issuer Trust, by all holders of Capital
Securities  issued  by  such  Issuer  Trust.

                                      -43-
<PAGE>
     Upon  any  such waiver, such default shall cease to exist, and any Event of
Default  arising therefrom shall be deemed to have been cured, for every purpose
of  this  Indenture,  but no such waiver shall extend to any subsequent or other
default  or  Event  of  Default  or  impair  any  right  consequent  thereon.

SECTION  5.14.     UNDERTAKING  FOR  COSTS.

     All parties to this Indenture agree, and each Holder of any Security by his
acceptance  thereof  shall  be deemed to have agreed, that any court may, in its
discretion,  require,  in  any  suit  for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken or
omitted  by  it  as Trustee, the filing by any party litigant in such suit of an
undertaking  to  pay  the  costs  of  such suit, and that such court may, in its
discretion,  assess  reasonable  costs,  including  reasonable  attorneys' fees,
against  any  party  litigant  in such suit, having due regard to the merits and
good  faith  of  the  claims  or  defenses  made by such party litigant, but the
provisions  of  this  Section  shall  not  apply  to  any suit instituted by the
Trustee,  to  any suit instituted by any Holder, or group of Holders, holding in
the  aggregate  more  than  10% in aggregate principal amount of the Outstanding
Securities  of  any  series,  or  to  any  suit instituted by any Holder for the
enforcement of the payment of the principal of (and premium, if any) or interest
(including  Additional  Interest,  if  any)  on  any  Security  on  or after the
respective  Stated  Maturities expressed in such Security, or in the case of any
redemption,  on  or after the Redemption Date for the enforcement of the payment
of  the  Redemption  Price  or the right to exchange such Securities for Capital
Securities,  as  provided  herein  or  in  the  related  Trust  Agreement.

SECTION  5.15.     WAIVER  OF  USURY,  STAY  OR  EXTENSION  LAWS.

     The  Company  covenants  (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take  the  benefit  or  advantage  of, any usury, stay or extension law wherever
enacted,  now  or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it may
lawfully  do  so)  hereby  expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every  such  power  as  though  no  such  law  had  been  enacted.

                                   ARTICLE VI
                                   THE TRUSTEE

SECTION  6.1.     CERTAIN  DUTIES  AND  RESPONSIBILITIES.

     (a)     Except  during  the  continuance  of  an  Event  of  Default,

                                      -44-
<PAGE>
          (1)     the  Trustee  undertakes  to perform such duties and only such
     duties  as  are  specifically  set  forth in this Indenture, and no implied
     covenants  or  obligations  shall  be  read into this Indenture against the
     Trustee;  and

          (2)     in  the  absence  of  bad  faith  on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the  opinions expressed therein, upon certificates or opinions furnished to
     the  Trustee  and  conforming to the requirements of this Indenture, but in
     the case of any such certificates or opinions that by any provisions hereof
     are specifically required to be furnished to the Trustee, the Trustee shall
     be  under  a  duty  to  examine  the  same to determine whether or not they
     conform  to  the  requirements  of  this  Indenture.

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

     (c)     No  provision  of  this Indenture shall be construed to relieve the
Trustee  from  liability for its own negligent action, its own negligent failure
to  act  or  its  own  willful  misconduct  except  that

          (1)     this  subsection shall not be construed to limit the effect of
     subsection  (a)  of  this  Section;

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

          (3)     the  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 Holders pursuant to Section 5.12 relating to the time, method
     and  place  of  conducting  any  proceeding for any remedy available to the
     Trustee, or exercising any trust or power conferred upon the Trustee, under
     this  Indenture  with  respect  to  the  Securities  of  a  series.

     (d)     No  provision of this Indenture shall require the Trustee to expend
or  risk  its  own  funds  or  otherwise  incur  any  financial liability in the
performance  of  any  of  its duties hereunder, or in the exercise of any of its
rights  or  powers,  if  there  shall  be  reasonable grounds for believing that
repayment  of such funds or adequate indemnity against such risk or liability is
not  reasonably  assured  to  it.

     (e)     Whether  or  not  therein expressly so provided, every provision of
this  Indenture  relating  to  the  conduct  or  affecting  the  liability of or
affording  protection  to the Trustee shall be subject to the provisions of this
Section.

                                      -45-
<PAGE>
SECTION  6.2.     NOTICE  OF  DEFAULTS.

     Within  90  days  after  actual  knowledge  by a Responsible Officer of the
Trustee  of  the  occurrence  of  any  default  hereunder  with  respect  to the
Securities  of  any series, the Trustee shall transmit by mail to all Holders of
Securities of such series, as their names and addresses appear in the Securities
Register,  notice  of such default, unless such default shall have been cured or
waived; provided, however, except in the case of a default in the payment of the
principal  of  (and premium, if any) or interest (including Additional Interest,
if  any)  on  any  Security  of  such  series, the Trustee shall be protected in
withholding  such notice if and so long as the board of directors, the executive
committee  or  a trust committee of directors and/or Responsible Officers of the
Trustee  in  good faith determines that the withholding of such notice is in the
interests  of the Holders of Securities of such series; and provided further, in
the  case  of  any default of the character specified in Section 5.1(3), no such
notice  to Holders of Securities of such series shall be given until at least 30
days  after  the  occurrence thereof.  For the purpose of this Section, the term
"default"  means  any  event  that  is, or after notice or lapse of time or both
would  become,  an  Event  of Default with respect to Securities of such series.

SECTION  6.3.     CERTAIN  RIGHTS  OF  TRUSTEE.

     Subject  to  the  provisions  of  Section  6.1:

     (a)     the Trustee may rely and shall be protected in acting or refraining
from  acting  upon  any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, Security or
other  paper or document believed by it to be genuine and to have been signed or
presented  by  the  proper  party  or  parties;

     (b)     any  request  or direction of the Company mentioned herein shall be
sufficiently  evidenced by a Company Request or Company Order and any resolution
of  the  Board of Directors may be sufficiently evidenced by a Board Resolution;

     (c)     whenever  in the administration of this Indenture the Trustee shall
deem  it  desirable  that  a  matter  be  proved or established prior to taking,
suffering  or  omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
rely  upon  an  Officers'  Certificate;

     (d)     the Trustee may consult with counsel and the advice of such counsel
or  any  Opinion  of  Counsel  shall  be  full  and  complete  authorization and
protection  in  respect of any action taken, suffered or omitted by it hereunder
in  good  faith  and  in  reliance  thereon;

                                      -46-
<PAGE>
     (e)     the  Trustee  shall  be  under no obligation to exercise any of the
rights  or  powers vested in it by this Indenture at the request or direction of
any  of  the  Holders pursuant to this Indenture, unless such Holders shall have
offered  to  the  Trustee  reasonable  security  or indemnity against the costs,
expenses  and  liabilities  that might be incurred by it in compliance with such
request  or  direction;

     (f)     the  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, indenture,
Security  or other paper or document, but the Trustee in its discretion may make
such inquiry or investigation into such facts or matters as it may see fit, and,
if  the  Trustee shall determine to make such inquiry or investigation, it shall
be  entitled  to  examine  the  books,  records  and  premises  of  the Company,
personally  or  by  agent  or  attorney;  and

     (g)     the  Trustee  may  execute any of the trusts or powers hereunder or
perform  any  duties  hereunder  either  directly  or  by  or  through agents or
attorneys  and  the  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.

SECTION  6.4.     NOT  RESPONSIBLE  FOR  RECITALS  OR  ISSUANCE  OF  SECURITIES.

     The  recitals  contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and  neither the Trustee nor any Authenticating Agent assumes any responsibility
for  their correctness.  The Trustee makes no representations as to the validity
or  sufficiency  of  this Indenture or of the Securities of any series or of the
Capital  Securities.  Neither  the Trustee nor any Authenticating Agent shall be
accountable  for  the use or application by the Company of the Securities or the
proceeds  thereof.

SECTION  6.5.  MAY  HOLD  SECURITIES.

     The  Trustee,  any  Authenticating  Agent, any Paying Agent, any Securities
Registrar  or  any  other  agent  of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
6.8  and 6.13, may otherwise deal with the Company with the same rights it would
have  if  it  were  not  Trustee, Authenticating Agent, Paying Agent, Securities
Registrar  or  such  other  agent.

SECTION  6.6.     MONEY  HELD  IN  TRUST.

     Money  held  by  the Trustee in trust hereunder need not be segregated from
other funds except to the extent required by law.  The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed  with  the  Company.

SECTION  6.7.     COMPENSATION  AND  REIMBURSEMENT.

                                      -47-
<PAGE>
     (a)     The  Company  agrees  to  pay  to  the  Trustee  from  time to time
reasonable  compensation  for  all  services  rendered  by  it hereunder in such
amounts  as  the  Company  and  the Trustee shall agree from time to time (which
compensation  shall  not  be  limited  by  any provision of law in regard to the
compensation  of  a  trustee  of  an  express  trust).

     (b)     The  Company  agrees  to reimburse the Trustee upon its request for
all  reasonable  expenses,  disbursements  and  advances incurred or made by the
Trustee  in  accordance  with  any  provision  of  this Indenture (including the
reasonable  compensation  and  the  expenses and disbursements of its agents and
counsel),  except  any  such  expense,  disbursement  or  advance  as  may  be
attributable  to  its  negligence  or  bad  faith.

     (c)     Since  the  Issuer  Trust  is  being formed solely to facilitate an
investment  in  the  Trust  Securities,  the Company, as Depositor of the Issuer
Trust  under  the  Trust  Agreement,  hereby  covenants  to  pay  all  debts and
obligations  (other  than  with respect to the Capital Securities and the Common
Securities) and all reasonable costs and expenses of the Issuer Trust (including
without  limitation  all  reasonable  costs  and  expenses  relating  to  the
organization  of the Issuer Trust, the fees and expenses of the trustees and all
costs and expenses relating to the operation of the Issuer Trust) and to pay any
and  all  taxes,  duties, assessments or governmental charges of whatever nature
(other than withholding taxes) imposed on the Issuer Trust by the United States,
or  any  taxing  authority, so that the net amounts received and retained by the
Issuer  Trust  and the Property Trustee after paying such expenses will be equal
to the amounts the Issuer Trust and the Property Trustee would have received had
no  such costs or expenses been incurred by or imposed on the Issuer Trust.  The
foregoing  obligations  of  the  Company  are  for  the benefit of, and shall be
enforceable  by, any person to whom any such debts, obligations, costs, expenses
and  taxes  are  owed  (each,  a  "Creditor"),  whether or not such Creditor has
                                   --------
received  notice  thereof.  Any  such  Creditor  may  enforce  such  obligations
directly  against  the  Company, and the Company irrevocably waives any right or
remedy  to  require  that  any  such Creditor take any action against the Issuer
Trust  or  any  other person before proceeding against the Company.  The Company
shall  execute  such  additional  agreements as may be necessary or desirable to
give  full  effect  to  the  foregoing.

     (d)     The  Company  shall indemnify the Trustee for, and hold it harmless
against,  any  loss, liability or expense (including the reasonable compensation
and  the  expenses and disbursements of its agents and counsel) incurred without
negligence  or bad faith, arising out of or in connection with the acceptance or
administration  of  this  trust  or  the  performance  of  its duties hereunder,
including  the  reasonable  costs  and  expenses of defending itself against any
claim  or liability in connection with the exercise or performance of any of its
powers  or duties hereunder.  This indemnification shall survive the termination
of  this  Indenture  or  the  resignation  or  removal  of  the  Trustee.

                                      -48-
<PAGE>
     When  the  Trustee  incurs  expenses  or renders services after an Event of
Default  specified  in  Section  5.1(4)  or  5.1(5) occurs, the expenses and the
compensation  for  the  services  are  intended  to  constitute  expenses  of
administration  under  the  Bankruptcy  Code.

SECTION  6.8.     DISQUALIFICATION;  CONFLICTING  INTERESTS.

     The  Trustee  for  the  Securities  of any series issued hereunder shall be
subject to the provisions of Section 310(b) of the Trust Indenture Act.  Nothing
herein shall prevent the Trustee from filing with the Commission the application
referred  to  in  the  second  to last paragraph of said Section 310(b).  To the
extent  permitted by the Trust Indenture Act, the Trustee shall not be deemed to
have  a  conflicting interest with respect to Securities of any series by virtue
of  being  a  trustee  under  this  Indenture  with  respect to any other series
hereunder.  The  Trust  Agreement and the Guarantee Agreement shall be deemed to
be  specifically  described  in this Indenture for purposes of clause (i) of the
first  proviso  contained  in  Section  310(b)  of  the  Trust  Indenture  Act.

SECTION  6.9.    CORPORATE  TRUSTEE  REQUIRED;  ELIGIBILITY.

     There  shall  at  all  times  be  a  Trustee  hereunder  which  shall  be:

     (a)     an entity organized and doing business under the laws of the United
States  of  America  or  of any state or territory thereof or of the District of
Columbia,  authorized  under  such  laws  to exercise corporate trust powers and
subject to supervision or examination by Federal, state, territorial or District
of  Columbia  authority;  or

     (b)     an  entity  or  other Person organized and doing business under the
laws  of  a foreign government that is permitted to act as Trustee pursuant to a
rule,  regulation  or  order  of  the  Commission, authorized under such laws to
exercise  corporate  trust  powers, and subject to supervision or examination by
authority  of  such  foreign  government  or  a  political  subdivision  thereof
substantially  equivalent  to  supervision  or  examination applicable to United
States  institutional  trustees;

in  either case having a combined capital and surplus of at least $50,000,000.00
and  subject  to  supervision  or examination by Federal or state authority.  If
such entity publishes reports of condition at least annually, pursuant to law or
to  the  requirements of the aforesaid supervising or examining authority, then,
for  the  purposes  of  this  Section,  the combined capital and surplus of such
entity  shall  be  deemed to be its combined capital and surplus as set forth in
its  most  recent  report  of condition so published. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified
in  this  Article.  Neither  the  Company  nor any Person directly or indirectly
controlling,  controlled by or under common control with the Company shall serve
as  Trustee  for  the  Securities  of  any  series  issued  hereunder.

                                      -49-
<PAGE>
SECTION  6.10.  RESIGNATION  AND  REMOVAL;  APPOINTMENT  OF  SUCCESSOR.

     (a)     No  resignation  or  removal of the Trustee and no appointment of a
successor  Trustee  pursuant  to  this  Article shall become effective until the
acceptance  of  appointment  by  the  successor  Trustee  under  Section  6.11.

     (b)     The  Trustee  may resign at any time with respect to the Securities
of  one  or  more series by giving written notice thereof to the Company.  If an
instrument of acceptance by a successor Trustee shall not have been delivered to
the  Trustee  within 30 days after the giving of such notice of resignation, the
resigning  Trustee  may  petition  any  court  of competent jurisdiction for the
appointment  of  a  successor  Trustee  with  respect  to the Securities of such
series.

     (c)     The  Trustee  may  be  removed  at  any  time  with  respect to the
Securities  of  any  series  by  Act  of  the Holders of a majority in aggregate
principal  amount of the Outstanding Securities of such series, delivered to the
Trustee  and  to  the  Company.

     (d)     If  at  any  time:

          (1)     the  Trustee  shall  fail  to  comply  with  Section 6.8 after
     written  request  therefor  by  the Company or by any Holder who has been a
     bona  fide  Holder  of  a  Security  for  at  least  six  months;  or

          (2)     the  Trustee  shall cease to be eligible under Section 6.9 and
     shall  fail  to  resign after written request therefor by the Company or by
     any  such  Holder;  or

          (3)     the  Trustee  shall  become  incapable  of  acting or shall be
     adjudged  a bankrupt or insolvent or a receiver, conservator, liquidator or
     similar  official  of  the Trustee or of its property shall be appointed or
     any  public  officer  shall take charge or control of the Trustee or of its
     property  or  affairs  for  the  purpose  of  rehabilitation, receivership,
     conservation,  winding  up  or  liquidation;

then,  in  any such case, (i) the Company, acting pursuant to the authority of a
Board  Resolution,  may remove the Trustee with respect to the Securities of all
series  issued  hereunder,  or  (ii) subject to Section 5.14, any Holder who has
been  a bona fide Holder of a Security for at least six months may, on behalf of
such  Holder  and all others similarly situated, petition any court of competent
jurisdiction  for  the  removal of the Trustee with respect to the Securities of
all  series  issued  hereunder  and  the  appointment  of a successor Trustee or
Trustees.

     (e)     If  the  Trustee  shall  resign,  be removed or become incapable of
acting,  or if a vacancy shall occur in the office of Trustee for any cause with
respect  to  the  Securities  of  one  or  more  series, the Company, by a Board
Resolution,  shall  promptly  appoint  a  successor  Trustee with respect to the

                                      -50-
<PAGE>
Securities of that or those series.  If, within one year after such resignation,
removal  or incapability, or the occurrence of such vacancy, a successor Trustee
with  respect  to  the Securities of any series shall be appointed by Act of the
Holders  of  a  majority  in  aggregate  principal  amount  of  the  Outstanding
Securities of such series delivered to the Company and the retiring Trustee, the
successor  Trustee  so  appointed  shall,  forthwith upon its acceptance of such
appointment, become the successor Trustee with respect to the Securities of such
series  and  supersede  the  successor  Trustee appointed by the Company.  If no
successor  Trustee  with respect to the Securities of any series shall have been
so  appointed  by  the  Company  or  the Holders and accepted appointment in the
manner  hereinafter  provided,  any  Holder who has been a bona fide Holder of a
Security of such series for at least six months may, subject to Section 5.14, on
behalf  of  such Holder and all others similarly situated, petition any court of
competent  jurisdiction  for the appointment of a successor Trustee with respect
to  the  Securities  of  such  series.

     (f)     The  Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of  a  successor Trustee with respect to the Securities of any series by mailing
written  notice  of  such  event  by  first-class  mail, postage prepaid, to the
Holders  of Securities of such series as their names and addresses appear in the
Securities  Register.  Each  notice  shall  include  the  name  of the successor
Trustee  with  respect  to  the Securities of such series and the address of its
Corporate  Trust  Office.

SECTION  6.11.     ACCEPTANCE  OF  APPOINTMENT  BY  SUCCESSOR.

     (a)     In  case  of  the appointment hereunder of a successor Trustee with
respect  to  all  Securities,  every  such  successor Trustee so appointed shall
execute,  acknowledge  and deliver to the Company and to the retiring Trustee an
instrument  accepting such appointment, and thereupon the resignation or removal
of  the  retiring  Trustee  shall  become  effective and such successor Trustee,
without  any  further  act, deed or conveyance, shall become vested with all the
rights,  powers,  trusts and duties of the retiring Trustee; but, on the request
of  the  Company  or  the  successor  Trustee, such retiring Trustee shall, upon
payment  of  its charges, execute and deliver an instrument transferring to such
successor  Trustee all the rights, powers and trusts of the retiring Trustee and
shall  duly  assign, transfer and deliver to such successor Trustee all property
and  money  held  by  such  retiring  Trustee  hereunder.

     (b)     In  case  of  the appointment hereunder of a successor Trustee with
respect  to the Securities of one or more (but not all) series, the Company, the
retiring  Trustee  and  each successor Trustee with respect to the Securities of
one  or  more  series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain  such  provisions  as  shall  be  necessary or desirable to transfer and
confirm  to,  and  to  vest  in,  each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or  those series to which the appointment of such successor Trustee relates, (2)
if  the  retiring  Trustee is not retiring with respect to all Securities, shall
contain  such  provisions  as  shall be deemed necessary or desirable to confirm
that  all  the  rights,  powers,  trusts and duties of the retiring Trustee with
respect  to  the  Securities  of  that  or those series as to which the retiring

                                      -51-
<PAGE>
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3)  shall  add to or change any of the provisions of this Indenture as shall be
necessary  to  provide  for  or  facilitate  the  administration  of  the trusts
hereunder  by  more than one Trustee, it being understood that nothing herein or
in  such supplemental indenture shall constitute such Trustees or co-trustees of
the  same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder  separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture  the  resignation  or  removal  of  the  retiring Trustee shall become
effective  to  the  extent  provided  therein  and  each removal of the retiring
Trustee,  without  any further act, deed or conveyance, shall become vested with
all  the rights, powers, trusts, and duties of the retiring Trustee with respect
to  the  Securities  of  that  or  those series to which the appointment of such
successor  Trustee  relates;  but,  on  request  of the Company or any successor
Trustee,  such  retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee hereunder
with  respect to the Securities of that or those series to which the appointment
of  such  successor  Trustee  relates.

     (c)     Upon  request  of  any  such  successor  Trustee, the Company shall
execute  any  and  all  instruments  for more fully and certainly vesting in and
confirming  to  such successor Trustee all rights, powers and trusts referred to
in  paragraphs  (a)  or  (b)  of  this  Section  6.11,  as  the  case  may  be.

     (d)     No  successor  Trustee  shall accept its appointment unless, at the
time  of such acceptance, such successor Trustee shall be qualified and eligible
under  this  Article  VI.

SECTION  6.12.     MERGER,  CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

     Any  entity into which the Trustee may be merged or converted or with which
it  may  be consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any entity succeeding to
all  or  substantially all of the corporate trust business of the Trustee, shall
be  the  successor  of  the  Trustee  hereunder,  provided  such entity shall be
otherwise  qualified  and  eligible under this Article, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.
In  case any Securities shall have been authenticated, but not delivered, by the
Trustee  then in office, any successor by merger, conversion or consolidation to
such  authenticating  Trustee  may  adopt  such  authentication  and deliver the
Securities  so  authenticated,  and  in  case any Securities shall not have been
authenticated,  any  successor  to  the Trustee may authenticate such Securities
either  in  the name of any predecessor Trustee or in the name of such successor
Trustee,  and in all cases the certificate of authentication shall have the full
force  which it is provided anywhere in the Securities or in this Indenture that
the  certificate  of  the  Trustee  shall  have.

SECTION  6.13.     PREFERENTIAL  COLLECTION  OF  CLAIMS  AGAINST  COMPANY.

                                      -52-
<PAGE>
     If  and  when  the Trustee shall be or become a creditor of the Company (or
any  other  obligor  upon  the  Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the  Company  (or  any  such  other  obligor).

SECTION  6.14.     APPOINTMENT  OF  AUTHENTICATING  AGENT.

     The  Trustee  may appoint an Authenticating Agent or Agents with respect to
one  or more series of Securities, which shall be authorized to act on behalf of
the Trustee to authenticate Securities of such series issued upon original issue
and  upon  exchange,  registration  of transfer or partial redemption thereof or
pursuant  to  Section  3.6, and Securities so authenticated shall be entitled to
the  benefits  of  this  Indenture  and  shall  be  valid and obligatory for all
purposes  as  if  authenticated by the Trustee hereunder.  Wherever reference is
made  in  this Indenture to the authentication and delivery of Securities by the
Trustee  or the Trustee's certificate of authentication, such reference shall be
deemed  to  include  authentication  and delivery on behalf of the Trustee by an
Authenticating  Agent.  Each  Authenticating  Agent  shall  be acceptable to the
Company  and  shall at all times be an entity organized and doing business under
the  laws  of the United States of America, or of any state or territory thereof
or  of  the  District  of  Columbia,  authorized  under  such  laws  to  act  as
Authenticating  Agent,  having  a  combined capital and surplus of not less than
$50,000,000.00  and  subject  to  supervision or examination by Federal or state
authority.  If such Authenticating Agent publishes reports of condition at least
annually,  pursuant  to  law  or  to  the  requirements  of  said supervising or
examining  authority, then for the purposes of this Section the combined capital
and  surplus  of  such  Authenticating  Agent shall be deemed to be its combined
capital  and  surplus  as  set  forth  in its most recent report of condition so
published.  If at any time an Authenticating Agent shall cease to be eligible in
accordance  with the provisions of this Section, such Authenticating Agent shall
resign  immediately in the manner and with the effect specified in this Section.

     Any entity into which an Authenticating Agent may be merged or converted or
with  which  it  may  be  consolidated, or any entity resulting from any merger,
conversion or consolidation to which such Authenticating Agent shall be a party,
or  any  entity  succeeding  to  all or substantially all of the corporate trust
business  of an Authenticating Agent shall be the successor Authenticating Agent
hereunder,  provided such entity shall be otherwise eligible under this Section,
without  the  execution or filing of any paper or any further act on the part of
the  Trustee  or  the  Authenticating  Agent.

     An  Authenticating  Agent  may  resign at any time by giving written notice
thereof  to  the  Trustee  and  to  the  Company.  The  Trustee  may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to  such  Authenticating Agent and to the Company.  Upon receiving such a notice
of  resignation  or  upon  such  a  termination,  or  in  case  at any time such
Authenticating  Agent  shall  cease  to  be  eligible  in  accordance  with  the
provisions  of  this Section, the Trustee may appoint a successor Authenticating
Agent,  which  shall  be acceptable to the Company and shall give notice of such
appointment  in  the manner provided in Section 1.6 to all Holders of Securities
of  the  series with respect to which such Authenticating Agent will serve.  Any
successor  Authenticating  Agent  upon  acceptance hereunder shall become vested

                                      -53-
<PAGE>
with  all  the rights, powers and duties of its predecessor hereunder, with like
effect  as  if  originally  named  as  an  Authenticating  Agent.  No  successor
Authenticating  Agent  shall be appointed unless eligible under the provision of
this  Section.

     The  Company  agrees  to pay to each Authenticating Agent from time to time
reasonable  compensation  for  its  services under this Section, and the Trustee
shall  be  entitled to be reimbursed for such payment, subject to the provisions
of  Section  6.7.

     If  an  appointment  with respect to one or more series is made pursuant to
this  Section,  the  Securities  of  such  series  may have endorsed thereon, in
addition  to  the  Trustee's  certificate  of  authentication,  an  alternative
certificate  of  authentication  in  the  following  form:

     This  is  one  of  the  Securities  referred  to  in  the  within mentioned
Indenture.

Dated:  __________________               WILMINGTON  TRUST  COMPANY,
                                         as  Trustee

                                         By:  ____________________________
                                         As Authenticating Agent for the Trustee

                                         By:  ____________________________
                                         Name  of  Authorized  Officer:
                                         Title:

                                   ARTICLE VII
                      HOLDER LISTS AND REPORTS BY TRUSTEE,
                            PAYING AGENT AND COMPANY

SECTION  7.1.     COMPANY  TO  FURNISH  TRUSTEE  NAMES AND ADDRESSES OF HOLDERS.

     The  Company  will  furnish  or  cause  to be furnished to the Trustee with
respect  to  Securities  of  each series for which it acts as Trustee hereunder:

     (a)     quarterly, not more than 15 days after the each regular record date
for each Interest Payment Date in each year, a list, in such form as the Trustee
may  reasonably  require,  of  the names and addresses of the Holders as of each
such  record  date;  and

                                      -54-
<PAGE>
     (b)     at  such  other times as the Trustee may request in writing, within
30  days after the receipt by the Company of any such request, a list of similar
form  and content as of a date not more than 15 days prior to the time such list
is  furnished; provided, however, no such list need be furnished, if and so long
as  the  Trustee  is  the  Securities  Registrar.

SECTION  7.2.     PRESERVATION  OF  INFORMATION;  COMMUNICATIONS  TO  HOLDERS.

     (a)     The  Trustee  shall preserve, in as current a form as is reasonably
practicable,  the  names  and  addresses of Holders contained in the most recent
list  furnished  to  the  Trustee  as  provided in Section 7.1 and the names and
addresses  of  Holders  received  by  the  Trustee in its capacity as Securities
Registrar.  The  Trustee  may  destroy  any  list furnished to it as provided in
Section  7.1  upon  receipt  of  a  new  list  so  furnished.

     (b)     The  rights  of  Holders  to  communicate  with  other Holders with
respect  to  their  rights under this Indenture or under the Securities, and the
corresponding  rights and privileges of the Trustee, shall be as provided in the
Trust  Indenture  Act.

     (c)     Every  Holder  of  Securities,  by  receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor  any  agent  of  either  of  them shall be held accountable by reason of the
disclosure  of  information  as  to  the names and addresses of the Holders made
pursuant  to  the  Trust  Indenture  Act.

SECTION  7.3.     REPORTS  BY  TRUSTEE  AND  PAYING  AGENT.

     (a)     The  Trustee  shall transmit to Holders such reports concerning the
Trustee  and its actions under this Indenture as may be required pursuant to the
Trust  Indenture  Act, at the times and in the manner provided pursuant thereto.

     (b)     Reports  so  required  to be transmitted at stated intervals of not
more  than  12  months  shall  be  transmitted  no later than January 31 in each
calendar  year, commencing with the first January 31 after the first issuance of
Securities  under  this  Indenture.

     (c)     A  copy of each such report shall, at the time of such transmission
to  Holders, be filed by the Trustee with each securities exchange, if any, upon
which  any  Securities  are  listed, and also with the Commission, if and to the
extent  then  required  by  the Commission's rules and regulations.  The Company
will  notify  the  Trustee  when  any  Securities  are  listed on any securities
exchange.

                                      -55-
<PAGE>
     (d)     The  Paying  Agent  shall  comply  with  all  withholding,  backup
withholding,  tax  and  information  reporting  requirements  under the Internal
Revenue Code of 1986, as amended, and the Treasury Regulations issued thereunder
with  respect  to  payments  on,  or  with  respect  to,  the  Securities.

SECTION  7.4.     REPORTS  BY  COMPANY.

     The  Company  shall file or cause to be filed with the Trustee and with the
Commission,  if  and  to  the extent then required by the Commission's rules and
regulations,  and  transmit  to  Holders,  such information, documents and other
reports,  and  such  summaries thereof, as may be required pursuant to the Trust
Indenture  Act  at  the  times and in the manner provided in the Trust Indenture
Act,  if  this  Indenture  is  then  qualified  under  and  subject to the Trust
Indenture  Act.  In the case of information, documents or reports required to be
filed  with  the  Commission  pursuant  to Section 13(a) or Section 15(d) of the
Exchange  Act,  the  Company  shall file or cause the filing of such information
documents or reports with the Trustee within 15 days after the same are required
to be filed with the Commission. Annually, by March 31 of each year, the Company
will  file  with the Trustee a certificate of compliance with all conditions and
covenants  applicable  to  the  Company  hereunder.

                                  ARTICLE VIII
              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION  8.1.     COMPANY  MAY  CONSOLIDATE,  ETC.,  ONLY  ON  CERTAIN  TERMS.

     The  Company  shall  not consolidate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an entirety
to  any  Person,  unless:

          (1)     the  Person resulting from such consolidation or merger or the
     Person to which the Company conveys, transfers or leases its properties and
     assets  substantially  as  an  entirety  shall  be  an entity organized and
     existing  under  the  laws  of  the  United  States of America or any state
     thereof  or  the  District  of  Columbia  and shall expressly assume, by an
     indenture  supplemental  hereto,  executed and delivered to the Trustee, in
     form  satisfactory  to  the  Trustee,  the  due and punctual payment of the
     principal  of  (and  premium,  if  any),  interest  (including  Additional
     Interest,  if  any)  and  Additional Sums, if any, on all the Securities of
     every series and the performance of every covenant of this Indenture on the
     part of the Company to be performed or observed; provided, however, nothing
     herein  shall  be  deemed  to  restrict  or  prohibit,  and no supplemental
     indenture  shall  be  required  in  the  case of, the merger of a Principal
     Subsidiary  with  and  into  a  Principal  Subsidiary  or  the Company, the
     consolidation  of Principal Subsidiaries into a Principal Subsidiary or the
     Company,  or  the  sale or other disposition of all or substantially all of
     the  assets  of any Principal Subsidiary to another Principal Subsidiary or
     the  Company,  if,  in  any  such case in which the surviving, resulting or
     acquiring  entity  is  not  the Company, the Company would own, directly or

                                      -56-
<PAGE>
     indirectly,  at  least  80%  of  the  voting  securities  of  the Principal
     Subsidiary  (and  in the case of any other Principal Subsidiary, any voting
     securities  of  which  are owned, directly or indirectly, by such Principal
     Subsidiary)  surviving  such  merger,  resulting from such consolidation or
     acquiring  such  assets;

          (2)     immediately  after giving effect to such transaction, no Event
     of  Default,  and  no  event  that, after notice or lapse of time, or both,
     would  constitute  an  Event  of  Default,  shall  have  occurred  and  be
     continuing;  and

          (3)     the  Company  has  delivered  to  the  Trustee  an  Officers'
     Certificate  and  an  Opinion  of  Counsel,  each  stating  that  such
     consolidation,  merger,  conveyance,  transfer  or  lease  and  any  such
     supplemental  indenture  comply  with  this Article and that all conditions
     precedent  herein  provided  for  relating  to  such  transaction have been
     complied  with  and met. The Trustee, subject to Section 6.1, may rely upon
     such  Officers' Certificates and Opinions of Counsel as conclusive evidence
     that  such  transaction  complies  with  this  Section  8.1.

SECTION  8.2.     SUCCESSOR  COMPANY  SUBSTITUTED.

     Upon  any  consolidation  or  merger  by the Company with or into any other
Person,  or  any  conveyance, transfer or lease by the Company of its properties
and assets substantially as an entirety to any Person in accordance with Section
8.1, the successor entity formed by such consolidation or into which the Company
is  merged  or to which such conveyance, transfer or lease is made shall succeed
to,  and  be  substituted  for,  and  may exercise every right and power of, the
Company  under  this  Indenture with the same effect as if such successor Person
had  been  named  as  the  Company  herein;  and in the event of any conveyance,
transfer  or  lease  of  the Company's properties and assets substantially as an
entirety  and  not  as  part  of a merger or consolidation, the Company shall be
discharged  from  all  obligations  and  covenants  under  the Indenture and the
Securities.

     Such successor Person may cause to be executed, and may issue either in its
own  name  or  in the name of the Company, any or all of the Securities issuable
hereunder  that  theretofore  shall  not  have  been  signed  by the Company and
delivered  to  the Trustee; and, upon the order of such successor Person instead
of  the Company and subject to all the terms, conditions and limitations in this
Indenture  prescribed,  the  Trustee  shall  authenticate  and shall deliver any
Securities  that previously shall have been signed and delivered by the officers
of the Company to the Trustee for authentication pursuant to such provisions and
any  Securities that such successor Person thereafter shall cause to be executed
and  delivered  to  the  Trustee  on its behalf for the purpose pursuant to such
provisions.  All  the  Securities  so issued shall in all respects have the same
legal  rank  and  benefit  under this Indenture as the Securities theretofore or
thereafter  issued  in  accordance  with  the  terms  of  this  Indenture.

                                      -57-
<PAGE>
     In  case of any such consolidation, merger, sale, conveyance or lease, such
changes  in  phraseology and form may be made in the Securities thereafter to be
issued  as  may  be  appropriate.

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

SECTION  9.1.     SUPPLEMENTAL  INDENTURES  WITHOUT  CONSENT  OF  HOLDERS.

     Without the consent of any Holders, the Company, when authorized by a Board
Resolution,  and  the  Trustee,  at any time and from time to time, may amend or
waive  any  provision of this Indenture or may enter into one or more indentures
supplemental  hereto,  in  form  satisfactory  to  the  Trustee,  for any of the
following  purposes:

          (1)     to  evidence  the succession of another Person to the Company,
     and  the  assumption  by any such successor of the covenants of the Company
     herein  and  in  the  Securities  contained;  or

          (2)     to  convey,  transfer, assign, mortgage or pledge any property
     to or with the Trustee, or to surrender any right or power herein conferred
     upon  the  Company;  or

          (3)     to  establish the form or terms of Securities of any series as
     permitted  by  Sections  2.1  or  3.1;  or

          (4)     to  facilitate  the  issuance  of  Securities of any series in
     certificated  or  other  definitive  form;  or

          (5)     to  add to the covenants of the Company for the benefit of the
     Holders of all or any series of Securities (and if such covenants are to be
     for  the  benefit  of less than all series of Securities, stating that such
     covenants are expressly being included solely for the benefit of the series
     specified),  or  to  surrender any right or power herein conferred upon the
     Company;  or

          (6)     to add any additional Events of Default for the benefit of the
     Holders  of  all or any series of Securities (and if such additional Events
     of  Defaults  are  to  be  for  the  benefit  of  less  than  all series of
     Securities,  stating  that  such additional Events of Default are expressly
     being  included  solely  for  the  benefit  of  the  series  specified); or

          (7)     to  change  or  eliminate  any  of  the  provisions  of  this
     Indenture,  provided  that  any such change or elimination shall (a) become
     effective  only when there is no Security Outstanding of any series created
     prior  to  the execution of such supplemental indenture that is entitled to
     the  benefit  of  such  provision  or  (b)  not  apply  to  any Outstanding
     Securities;  or

                                      -58-
<PAGE>
          (8)     to  cure any ambiguity, to correct or supplement any provision
     herein  that  may  be  defective  or  inconsistent with any other provision
     herein  or  in  any  Trust  Agreement establishing an Issuer Trust to which
     Securities  have  been or are to be issued, or to make any other provisions
     with respect to matters or questions arising under this Indenture, provided
     that such action pursuant to this clause (8) shall not adversely affect the
     (i)  interests  of  the Holders of Securities of any series in any material
     respect  or,  (ii)  in  the case of the Securities of a series issued to an
     Issuer  Trust and for so long as any of the corresponding series of Capital
     Securities  issued  by  such  Issuer  Trust  shall  remain outstanding, the
     interests  of  holders  of  such  Capital  Securities;  or

          (9)     to  evidence  and  provide  for  the acceptance of appointment
     hereunder  by  a successor Trustee with respect to the Securities of one or
     more series and to add to or change any of the provisions of this Indenture
     as  shall  be  necessary to provide for or facilitate the administration of
     the trusts hereunder by more than one Trustee, pursuant to the requirements
     of  Section  6.11(b);  or

          (10)     to comply with the requirements of the Commission in order to
     effect  or  maintain  the  qualification  of this Indenture under the Trust
     Indenture  Act.

SECTION  9.2.     SUPPLEMENTAL  INDENTURES  WITH  CONSENT  OF  HOLDERS.

     With  the  consent  of the Holders of not less than a majority in aggregate
principal  amount  of the Outstanding Securities of each series affected by such
supplemental  indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter  into  an  indenture  or indentures supplemental hereto for the purpose of
adding  any  provisions  to  or changing in any manner or eliminating any of the
provisions  of  this  Indenture  or of modifying in any manner the rights of the
Holders  of  Securities  of  such  series under this Indenture; provided no such
supplemental  indenture  shall,  without  the  consent  of  the  Holder  of each
Outstanding  Security  of  each  series  affected  thereby,

          (1)     change  the  Stated  Maturity  of  the  principal  of,  or any
     installment  of  interest  (including  any  Additional  Interest)  on,  any
     Security,  or  reduce  the principal amount thereof or the rate of interest
     thereon  or  any premium payable upon the redemption thereof, or reduce the
     amount  of  principal  of a Discount Security that would be due and payable
     upon  a  declaration  of  acceleration  of the Maturity thereof pursuant to
     Section  5.2,  change  any obligation of the Company to pay Additional Sums
     pursuant  to Section 10.6 hereof (except as contemplated by Section 8.1 and
     permitted  by Section 9.1(1)), or change the place of payment where, or the
     coin  or  currency  in which, any Security or interest thereon or any other
     sum  is  payable, or impair the right to institute suit for the enforcement
     of  any  such  payment  on or after the Stated Maturity thereof (or, in the
     case  of  redemption,  on  or  after  the  Redemption  Date),  or

                                      -59-
<PAGE>
          (2)     reduce  the  percentage  in  aggregate principal amount of the
     Outstanding  Securities  of  any  series,  the  consent of whose Holders is
     required  for  any  such  supplemental  indenture,  or the consent of whose
     Holders  is  required for any waiver (of compliance with certain provisions
     of  this  Indenture  or  certain defaults hereunder and their consequences)
     provided  for  in  this  Indenture,  or

          (3)     modify  any of the provisions of this Section, Section 5.13 or
     Section  10.5,  except  to  increase any such percentage or to provide that
     certain  other  provisions  of  this Indenture cannot be modified or waived
     without  the  consent  of  the  Holder  of  each Security affected thereby;

     provided,  further,  that, in the case of the Securities of a series issued
     to  an  Issuer Trust, so long as any of the corresponding series of Capital
     Securities  issued  by  such  Issuer Trust remains outstanding, (i) no such
     amendment  shall be made that adversely affects the holders of such Capital
     Securities  in  any  material respect, and no termination of this Indenture
     shall  occur,  and no waiver of any Event of Default or compliance with any
     covenant under this Indenture shall be effective, without the prior consent
     of  the  holders of at least a majority of the aggregate Liquidation Amount
     of such Capital Securities then outstanding, unless and until the principal
     of  (and premium, if any, on) the Securities of such series and all accrued
     and  (subject  to  Section  3.8)  unpaid  interest  (including  Additional
     Interest,  if  any)  thereon  have been paid in full, and (ii) no amendment
     shall be made to Section 5.8 of this Indenture that would impair the rights
     of  the  holders  of  Capital Securities issued by an Issuer Trust provided
     therein  without  the  prior  consent  of  the holders of each such Capital
     Security  then  outstanding unless and until the principal of (and premium,
     if  any,  on) the Securities of such series and all accrued and (subject to
     Section  3.8)  unpaid  interest  (including  Additional  Interest,  if any)
     thereon  have  been  paid  in  full.

     A  supplemental  indenture that changes or eliminates any covenant or other
provision  of  this  Indenture  that  has expressly been included solely for the
benefit  of  one  or  more  particular series of Securities or any corresponding
series of Capital Securities of an Issuer Trust that holds the Securities of any
series,  or that modifies the rights of the Holders of Securities of such series
or  the  holders  of  such  Capital Securities of such corresponding series with
respect  to  such covenant or other provision, shall be deemed not to affect the
rights  under this Indenture of the Holders of Securities of any other series or
the  holders  of  Capital  Securities  of  any  other such corresponding series.

     It  shall  not  be  necessary  for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be  sufficient  if  such  Act  shall  approve  the  substance  thereof.

SECTION  9.3.     EXECUTION  OF  SUPPLEMENTAL  INDENTURES.

                                      -60-
<PAGE>
     In executing or accepting the additional trusts created by any supplemental
indenture  permitted  by this Article or the modifications thereby of the trusts
created  by  this  Indenture,  the  Trustee  shall  be  entitled to receive, and
(subject  to Section 6.1) shall be fully protected in relying upon, an Officers'
Certificate  and  an  Opinion  of  Counsel  stating  that  the execution of such
supplemental  indenture  is  authorized or permitted by this Indenture, and that
all  conditions  precedent herein provided for relating to such action have been
complied  with.  The  Trustee may, but shall not be obligated to, enter into any
such  supplemental  indenture  that  affects the Trustee's own rights, duties or
immunities  under  this  Indenture  or  otherwise.

SECTION  9.4.     EFFECT  OF  SUPPLEMENTAL  INDENTURES.

     Upon  the  execution of any supplemental indenture under this Article, this
Indenture  shall  be  modified  in  accordance  therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of  Securities  theretofore  or thereafter authenticated and delivered hereunder
shall  be  bound  thereby.

SECTION  9.5.     CONFORMITY  WITH  TRUST  INDENTURE  ACT.

     Every  supplemental  indenture  executed  pursuant  to  this  Article shall
conform  to  the  requirements  of  the  Trust  Indenture Act as then in effect.

SECTION  9.6.     REFERENCE  IN  SECURITIES  TO  SUPPLEMENTAL  INDENTURES.

     Securities of any series authenticated and delivered after the execution of
any  supplemental  indenture pursuant to this Article may, and shall if required
by the Company, bear a notation in form approved by the Company as to any matter
provided for in such supplemental indenture.  If the Company shall so determine,
new  Securities  of  any series so modified as to conform, in the opinion of the
Company,  to any such supplemental indenture may be prepared and executed by the
Company  and  authenticated  and  delivered  by  the  Trustee  in  exchange  for
Outstanding  Securities  of  such  series.

                                    ARTICLE X
                                    COVENANTS

SECTION  10.1.     PAYMENT  OF  PRINCIPAL,  PREMIUM  AND  INTEREST.

     The  Company  covenants  and  agrees  for  the  benefit  of  each series of
Securities  that  it will duly and punctually pay the principal of (and premium,
if  any)  and interest (including Additional Interest, if any) on the Securities
of  that  series  in  accordance  with  the  terms  of  such Securities and this
Indenture.

SECTION  10.2.     MAINTENANCE  OF  OFFICE  OR  AGENCY.

                                      -61-
<PAGE>
     The  Company  will  maintain  in  each  Place  of Payment for any series of
Securities  an office or agency where Securities of that series may be presented
or  surrendered  for payment, where Securities of that series may be surrendered
for  registration  of  transfer  or exchange and where notices and demands to or
upon  the Company in respect of the Securities of that series and this Indenture
may  be  served.  The Company initially appoints the Trustee, acting through its
Corporate  Trust  Office, as its agent for said purposes.  The Company will give
prompt  written  notice to the Trustee of any change in the location of any such
office or agency.  If at any time the Company shall fail to maintain such office
or  agency  or  shall fail to furnish the Trustee with the address thereof, such
presentations,  surrenders,  notices  and  demands  may be made or served at the
Corporate  Trust  Office  of  the  Trustee,  and the Company hereby appoints the
Trustee  as its agent to receive all such presentations, surrenders, notices and
demands.

     The  Company may also from time to time designate one or more other offices
or  agencies where the Securities may be presented or surrendered for any or all
of such purposes, and may from time to time rescind such designations; provided,
however,  no  such  designation  or  rescission  shall in any manner relieve the
Company  of  its  obligation  to  maintain  an office or agency in each Place of
Payment  for  Securities of any series for such purposes.  The Company will give
prompt  written  notice to the Trustee of any such designation and any change in
the  location  of  any  such  office  or  agency.

SECTION  10.3.     MONEY  FOR  SECURITY  PAYMENTS  TO  BE  HELD  IN  TRUST.

     If  the  Company shall at any time act as its own Paying Agent with respect
to  any  series  of  Securities,  it  will,  on  or  before each due date of the
principal  of  (and premium, if any) or interest (including Additional Interest,
if any) on any of the Securities of such series, segregate and hold in trust for
the  benefit  of  the  Persons  entitled  thereto  a  sum  sufficient to pay the
principal  (and  premium, if any) or interest (including Additional Interest) so
becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and will promptly notify the Trustee of its failure so to
act.

     Whenever  the  Company shall have one or more Paying Agents, it will, prior
to 10:00 A.M. Eastern Time, on each due date of the principal of (or premium, if
any)  or interest, including Additional Interest on any Securities, deposit with
a  Paying  Agent  a sum sufficient to pay the principal (and premium, if any) or
interest,  including Additional Interest so becoming due, such sum to be held in
trust for the benefit of the Persons entitled to such principal (and premium, if
any)  or  interest, including Additional Interest, and (unless such Paying Agent
is  the  Trustee) the Company will promptly notify the Trustee of its failure so
to  act.

     The  Company will cause each Paying Agent other than the Trustee to execute
and  deliver to the Trustee an instrument in which such Paying Agent shall agree
with  the  Trustee,  subject to the provisions of this Section, that such Paying
Agent  will:

                                      -62-
<PAGE>
     (1)     hold  all  sums held by it for the payment of the principal of (and
premium,  if  any) or interest (including Additional Interest) on the Securities
of  a series in trust for the benefit of the Persons entitled thereto until such
sums  shall be paid to such Persons or otherwise disposed of as herein provided;

     (2)     give the Trustee notice of any default by the Company (or any other
obligor  upon  such  Securities)  in the making of any payment of principal (and
premium, if any) or interest (or Additional Interest) in respect of any Security
of  any  series;

     (3)     at any time during the continuance of any default with respect to a
series  of Securities, upon the written request of the Trustee, forthwith pay to
the  Trustee all sums so held in trust by such Paying Agent with respect to such
series;  and

     (4)     comply with the provisions of the Trust Indenture Act applicable to
it  as  a  Paying  Agent.

     The Company may, at any time, for the purpose of obtaining the satisfaction
and  discharge  of  this  Indenture or for any other purpose, pay, or by Company
Order  direct  any Paying Agent to pay, to the Trustee all sums held in trust by
the  Company  or such Paying Agent, such sums to be held by the Trustee upon the
same terms as those upon which such sums were held by the Company or such Paying
Agent;  and,  upon  such payment by any Paying Agent to the Trustee, such Paying
Agent  shall  be released from all further liability with respect to such money.

     Any  money  deposited with the Trustee or any Paying Agent, or then held by
the  Company in trust for the payment of the principal of (and premium, if any),
and/or  interest  (including Additional Interest) on, any Security and remaining
unclaimed  for  two  years  after  such  principal (and premium, if any), and/or
interest  (including  Additional  Interest)  has  become  due  and payable shall
(unless  otherwise  required  by  mandatory  provision  of applicable escheat or
abandoned  or unclaimed property law) be paid on Company Request to the Company,
or  (if  then held by the Company) shall (unless otherwise required by mandatory
provision  of  applicable  escheat  or  abandoned  or unclaimed property law) be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all  liability  of  the  Trustee or such Paying Agent with respect to such trust
money,  and  all  liability  of  the Company as trustee thereof, shall thereupon
cease; provided, the Trustee or such Paying Agent, before being required to make
any  such  repayment,  may, at the expense of the Company, cause to be published
once, in a newspaper published in the English language, customarily published on
each  Business  Day  and of general circulation in the Borough of Manhattan, the
City  of  New  York and in each Place of Payment, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
30  days  from the date of such publication, any unclaimed balance of such money
then  remaining  will  be  repaid  to  the  Company.

SECTION  10.4.     STATEMENT  AS  TO  COMPLIANCE.

                                      -63-
<PAGE>
     The  Company shall deliver to the Trustee, within 120 days after the end of
each  fiscal  year  of  the  Company  ending after the date hereof, an Officers'
Certificate  covering the preceding calendar year, stating whether or not to the
best  knowledge  of  the  signers  thereof  the  Company  is  in  default in the
performance,  observance  or fulfillment of or compliance with any of the terms,
provisions, covenants and conditions of this Indenture, and if the Company shall
be in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.  For the purpose of this Section 10.4, compliance
shall  be determined without regard to any grace period or requirement of notice
provided  pursuant  to  the  terms  of  this  Indenture.

SECTION  10.5.     WAIVER  OF  CERTAIN  COVENANTS.

     Subject to the rights of holders of Capital Securities specified in Section
9.2,  if any, the Company may omit in any particular instance to comply with any
covenant  or  condition  provided  pursuant  to  Section 3.1 with respect to the
Securities  of  any  series, if before or after the time for such compliance the
Holders  of at least a majority in aggregate principal amount of the Outstanding
Securities  of  such  series  shall,  by  Act of such Holders, either waive such
compliance  in such instance or generally waive compliance with such covenant or
condition,  but  no  such  waiver  shall  extend  to  or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company in respect of any such covenant
or  condition  shall  remain  in  full  force  and  effect.

SECTION  10.6.     ADDITIONAL  SUMS.

     In  the  case  of  the Securities of a series initially issued to an Issuer
Trust,  so long as no Event of Default has occurred and is continuing and except
as  otherwise specified as contemplated by Section 2.1 or Section 3.1, if (i) an
Issuer  Trust is the Holder of all of the Outstanding Securities of such series,
and  (ii)  a  Tax Event has occurred and is continuing in respect of such Issuer
Trust,  the Company shall pay to such Issuer Trust (and its permitted successors
or  assigns  under the related Trust Agreement) for so long as such Issuer Trust
(or  its  permitted  successors  or  assigns)  is  the  registered holder of the
Outstanding  Securities of such series, such additional sums as may be necessary
in  order that the amount of Distributions (including any Additional Amounts (as
defined  in  such Trust Agreement)) then due and payable by such Issuer Trust on
its Capital Securities and Common Securities that at any time remain outstanding
in  accordance  with  the terms thereof shall not be reduced as a result of such
Additional  Taxes  (the  "Additional  Sums").  Whenever in this Indenture or the
                          ----------------
Securities there is a reference in any context to the payment of principal of or
interest  on  the Securities, such mention shall be deemed to include mention of
the payments of the Additional Sums provided for in this paragraph to the extent
that,  in such context, Additional Sums are, were or would be payable in respect
thereof  pursuant to the provisions of this paragraph and express mention of the
payment of Additional Sums (if applicable) in any provisions hereof shall not be
construed  as  excluding  Additional  Sums in those provisions hereof where such
express mention is not made; provided, however, that the deferral of the payment
of  interest  pursuant  to  Section  3.12  on the Securities shall not defer the
payment  of  any  Additional  Sums  that  may  be  due  and  payable.

                                      -64-
<PAGE>
SECTION  10.7.     ADDITIONAL  COVENANTS.

     The  Company  covenants  and  agrees with each Holder of Securities of each
series  that  it shall not (x) declare or pay any dividends or distributions on,
or  redeem, purchase, acquire or make a liquidation payment with respect to, any
shares  of  the Company's capital stock, or (y) make any payment of principal of
or  interest  or  premium,  if  any,  on or repay, repurchase or redeem any debt
securities of the Company that rank pari passu in all respects with or junior in
interest  to  the  Securities  of  such  series  (other  than  (a)  repurchases,
redemptions  or  other acquisitions of shares of capital stock of the Company in
connection  with  any  employment  contract, benefit, or incentive plan or other
similar  arrangement  with  or  for  the  benefit  of any one or more employees,
officers,  directors  or  consultants  of  the  Company  or its Subsidiaries, in
connection  with a dividend reinvestment or stock purchase plan or in connection
with  the  issuance  of  capital stock of the Company (or securities convertible
into  or  exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the applicable Extension Period or other event
referred  to below, (b) as a result of an exchange or conversion of any class or
series  of  the Company's capital stock (or any capital stock of a Subsidiary of
the  Company)  for  any class or series of the Company's capital stock or of any
class  or  series  of  the Company's indebtedness for any class or series of the
Company's  capital  stock, (c) the purchase of fractional interests in shares of
the Company's capital stock pursuant to the conversion or exchange provisions of
such  capital  stock  or  the  security  being  converted  or exchanged, (d) any
declaration of a dividend in connection with any Rights Plan, or the issuance of
rights,  stock  or  other  property  under any Rights Plan, or the redemption or
repurchase of rights pursuant thereto, or (e) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock issuable
upon  exercise  of  such  warrants, options or other rights is the same stock as
that  on  which the dividend is being paid or ranks pari passu with or junior to
such  stock),  if  at  such  time (i) there shall have occurred any event (A) of
which  the  Company  has  actual knowledge that with the giving of notice or the
lapse  of  time,  or  both,  would constitute an Event of Default under Sections
5.1(1),  (2), (3), (4) or (5) with respect to the Securities of such series, and
(B) which the Company shall not have taken reasonable steps to cure, (ii) if the
Securities  of  such series are held by an Issuer Trust, the Company shall be in
default  with  respect  to  its  payment  of any obligations under the Guarantee
relating  to  the  Capital  Securities issued by such Issuer Trust, or (iii) the
Company  shall  have  given  notice of its election to begin an Extension Period
with  respect  to the Securities of such series as provided herein and shall not
have  rescinded  such  notice, or such Extension Period or any extension thereof
shall  be  continuing.

     The  Company  also  covenants  with  each  Holder of Securities of a series
issued  to  an  Issuer  Trust  (i)  to hold, directly or indirectly, 100% of the
Common Securities of such Issuer Trust, provided that any permitted successor of
the Company as provided under Section 8.2 may succeed to the Company's ownership
of  such  Common  Securities,  (ii)  as holder of such Common Securities, not to
voluntarily terminate, wind up or liquidate such Issuer Trust, other than (a) in
connection  with  a distribution of the Securities of such series to the holders
of the related Capital Securities in liquidation of such Issuer Trust, or (b) in
connection  with  certain  mergers, consolidations or amalgamations permitted by

                                      -65-
<PAGE>
the related Trust Agreement, and (iii) to use its reasonable efforts, consistent
with  the  terms  and  provisions  of such Trust Agreement, to cause such Issuer
Trust  to  continue  to  be taxable as a grantor trust for United States Federal
income  tax  purposes.

SECTION  10.8.     FURNISHING  ANNUAL  INFORMATION.

     On  or  before  December  15  of  each year during which any Securities are
outstanding,  the Company shall furnish to each Paying Agent such information as
may be reasonably requested by each Paying Agent in order that each Paying Agent
may  prepare  the  information  which  it is required to report for such year on
Internal  Revenue  Service  Forms  1096 and 1099 pursuant to Section 6049 of the
Internal  Revenue  Code of 1986, as amended.  Such information shall include the
amount  of  any original issue discount includable in income for each authorized
minimum  denomination  of  principal  amount  at  Stated Maturity of outstanding
Securities  during  such  year.

                                   ARTICLE XI
                            REDEMPTION OF SECURITIES

SECTION  11.1.     APPLICABILITY  OF  THIS  ARTICLE.

     Redemption  of  Securities  of  any  series as permitted or required by the
terms of any form of Security issued pursuant to this Indenture shall be made in
accordance  with  the terms of such form of Security and this Article; provided,
however,  if  any provision of any such form of Security shall conflict with any
provision  of this Article, the provision of such form of Security shall govern.
Any  redemption  of  any  Security  prior  to  its Stated Maturity shall also be
subject to prior notice, and approval of (or notice of intent not to disapprove)
the  redemption,  if then required by the capital adequacy rules or otherwise by
the  Federal  Reserve  applicable  to  the  Company  at  that  time.

SECTION  11.2.     ELECTION  TO  REDEEM;  NOTICE  TO  TRUSTEE.

     The  election of the Company to redeem any Securities shall be evidenced by
or pursuant to a Board Resolution.  In case of any redemption at the election of
the  Company, the Company shall, not less than 30 nor more than 60 days prior to
the  Redemption  Date  (unless  a  shorter  notice  shall be satisfactory to the
Trustee),  notify the Trustee and, in the case of Securities of a series held by
an Issuer Trust, the Property Trustee under the related Trust Agreement, of such
date  and  of  the principal amount of Securities of the applicable series to be
redeemed  and  provide the additional information required to be included in the
notice  or  notices  contemplated by Section 11.4; provided that, in the case of
any  series  of  Securities  initially issued to an Issuer Trust, for so long as
such  Securities  are  held by such Issuer Trust, such notice shall be given not
less  than  45  nor  more  than  75 days prior to such Redemption Date (unless a
shorter  notice  shall be satisfactory to the Property Trustee under the related

                                      -66-
<PAGE>
Trust  Agreement).  In  the  case  of  any redemption of Securities prior to the
expiration  of  any restriction on such redemption provided in the terms of such
Securities,  the Company shall furnish the Trustee with an Officers' Certificate
and  an  Opinion  of  Counsel  evidencing  compliance  with  such  restriction.

SECTION  11.3.     SELECTION  OF  SECURITIES  TO  BE  REDEEMED.

     If  less  than  all  the  Securities  of any series are to be redeemed, the
particular  Securities  to  be  redeemed shall be selected not more than 60 days
prior  to the Redemption Date by the Trustee, from the Outstanding Securities of
such  series not previously called for redemption, by such method as the Trustee
shall  deem  fair  and  appropriate  and which may provide for the selection for
redemption  of a portion of the principal amount of any Security of such series,
provided  that  the  unredeemed  portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum
authorized  denomination)  for  such  Security.

     The  Trustee shall promptly notify the Company in writing of the Securities
selected for partial redemption and the principal amount thereof to be redeemed.
For  all  purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any  Security  redeemed  or  to  be redeemed only in part, to the portion of the
principal  amount  of  such  Security  that  has  been  or  is  to  be redeemed.

SECTION  11.4.     NOTICE  OF  REDEMPTION.

     Notice  of  redemption shall be given by first-class mail, postage prepaid,
mailed  not  later  than  30  days,  and  not earlier than 60 days, prior to the
Redemption  Date, to each Holder of Securities to be redeemed, at the address of
such  Holder  as  it  appears  in  the  Securities  Register.

     With  respect  to  Securities of such series to be redeemed, each notice of
redemption  shall  state:

     (a)     the  Redemption  Date;

     (b)     the  Redemption  Price  or,  if  the  Redemption  Price  cannot  be
calculated  prior to the time the notice is required to be sent, the estimate of
the  Redemption  Price  provided  pursuant  to  the  Indenture  together  with a
statement  that  it  is an estimate and that the actual Redemption Price will be
calculated  on  the  third Business Day prior to the Redemption Date (if such an
estimate of the Redemption Price is given, a subsequent notice shall be given as
set  forth  above  setting  forth  the  Redemption  Price promptly following the
calculation  thereof);

     (c)     if  less  than all Outstanding Securities of such particular series
are  to be redeemed, the identification (and, in the case of partial redemption,
the  respective  principal amounts) of the particular Securities to be redeemed;

                                      -67-
<PAGE>
     (d)     that,  on the Redemption Date, the Redemption Price will become due
and  payable  upon  each  such  Security  or  portion thereof, and that interest
thereon  (including  Additional Interest, if any), if any, shall cease to accrue
on  and  after  said  date;

     (e)     the  Place  or  Places  of  Payment where such Securities are to be
surrendered  for  payment  of  the  Redemption  Price;

     (f)     such other provisions as may be required in respect of the terms of
a  particular  series  of  Securities;

     (g)     that the redemption is for a sinking fund, if such is the case; and

     (h)     the  CUSIP  number,  if  any.

     Notice  of  redemption  of Securities to be redeemed at the election of the
Company  shall  be  given  by  the  Company or, at the Company's request, by the
Trustee  in the name and at the expense of the Company and shall be irrevocable.
The  notice,  if  mailed  in  the  manner  provided above, shall be conclusively
presumed  to  have  been  duly  given,  whether  or not the Holder receives such
notice.  In any case, a failure to give such notice by mail or any defect in the
notice  to the Holder of any Security designated for redemption as a whole or in
part  shall not affect the validity of the proceedings for the redemption of any
other  Security.

SECTION  11.5.     DEPOSIT  OF  REDEMPTION  PRICE.

     Prior  to  10:00 A.M. Eastern Time, on the Redemption Date specified in the
notice of redemption given as provided in Section 11.4, the Company will deposit
with  the Trustee or with one or more Paying Agents (or if the Company is acting
as  its  own  Paying  Agent,  the  Company  will  segregate and hold in trust as
provided  in  Section  10.3) an amount of money sufficient to pay the Redemption
Price  of,  and any accrued interest (including Additional Interest) on, all the
Securities  (or  portions  thereof)  that  are  to  be  redeemed  on  that date.

SECTION  11.6.     PAYMENT  OF  SECURITIES  CALLED  FOR  REDEMPTION.

     If any notice of redemption has been given as provided in Section 11.4, the
Securities  or  portion of Securities with respect to which such notice has been
given  shall  become  due  and  payable on the date and at each Place of Payment
stated  in such notice at the applicable Redemption Price, together with accrued
interest  (including  Additional  Interest,  if any) to the Redemption Date.  On
presentation  and  surrender  of such Securities duly endorsed or accompanied by
written  instruments  of  transfer executed by the Holder or its duly authorized
attorney,  in  form  satisfactory to the Company, the Trustee and the Securities

                                      -68-
<PAGE>
Registrar,  at  a Place of Payment in said notice specified, the said Securities
or  the  specified portions thereof shall be paid and redeemed by the Company at
the  applicable  Redemption  Price,  together  with  accrued interest (including
Additional  Interest,  if any) to the Redemption Date; provided, however, unless
otherwise  specified  as  contemplated  by Section 3.1, installments of interest
(including  Additional  Interest)  whose  Stated  Maturity is on or prior to the
Redemption  Date  will  be  payable to the Holders of such Securities, or one or
more  Predecessor Securities, registered as such at the close of business on the
relevant  record  dates  according  to their terms and the provisions of Section
3.8.

     Upon  presentation  of any Security redeemed in part only, duly endorsed or
accompanied by written instrument of transfer executed by the Holder or its duly
authorized  attorney,  in  form satisfactory to the Company, the Trustee and the
Securities  Registrar,  the  Company  shall  execute  and  the  Trustee  shall
authenticate and deliver to the Holder thereof, at the expense of the Company, a
new  Security  or Securities of the same series, of authorized denominations, in
an aggregate principal amount equal to the unredeemed portion of the Security so
presented  and  having  the same Original Issue Date, Stated Maturity and terms.

     Unless  the  Company fails to deposit or pay the Redemption Price, together
with  accrued  interest  (including  Additional  Interest,  if  any),  upon  the
Redemption Date the Securities to be redeemed shall no longer be Outstanding and
no  interest  (including  Additional Interest, if any) shall accrue thereon, and
upon  receipt of any certification representing the redeemed Securities shall be
cancelled  as  provided  in Section 3.10.  If any Security called for redemption
shall  not  be  so paid under surrender thereof for redemption, the principal of
and  premium, if any, on such Security shall, until paid, bear interest from the
Redemption  Date  at  the  rate  prescribed  therefor  in  the  Security.

SECTION  11.7.     RIGHT  OF  REDEMPTION  OF  SECURITIES  INITIALLY ISSUED TO AN
ISSUER  TRUST.

     In  the  case  of  the Securities of a series initially issued to an Issuer
Trust, except as otherwise specified by Section 3.1, the Company, at its option,
may  redeem such Securities (i) on or after the date specified in such Security,
in  whole  at any time or in part from time to time, or (ii) upon the occurrence
and  during  the  continuation  of a Tax Event, an Investment Company Event or a
Capital Treatment Event, at any time within 90 days following the occurrence and
during  the  continuation of such Tax Event, Investment Company Event or Capital
Treatment  Event, in whole (but not in part), in each case at a Redemption Price
specified in such Security, together with accrued interest (including Additional
Interest,  if  any)  to  the  Redemption  Date.

     If  less than all the Securities of any such series are to be redeemed, the
aggregate principal amount of such Securities remaining Outstanding after giving
effect  to  such redemption shall be sufficient to satisfy any provisions of the
Trust  Agreement  related  to  the  Issuer  Trust  to which such Securities were
issued,  including  any  requirement  in  such Trust Agreement as to the minimum
Liquidation  Amount  (as  defined  in  such Trust Agreement), if any, of Capital
Securities  that  may  be  held  by  a  holder  under  such  Trust  Agreement.

                                      -69-
<PAGE>
                                   ARTICLE XII
                                  SINKING FUNDS

Except  as  may be provided in any supplemental or amended indenture, no sinking
fund  shall be established or maintained for the retirement of Securities of any
series.

                                  ARTICLE XIII
                           SUBORDINATION OF SECURITIES

SECTION  13.1.     SECURITIES  SUBORDINATE  TO  SENIOR  INDEBTEDNESS.

     The  Company  covenants  and  agrees, and each Holder of a Security, by its
acceptance  thereof,  likewise  covenants and agrees, that, to the extent and in
the  manner  hereinafter set forth in this Article, the payment of the principal
of (and premium, if any) and interest (including Additional Interest, if any) on
each  and  all  of  the Securities of each and every series are hereby expressly
made  subordinate  and  junior  to  and subject in right of payment to the prior
payment in full of all Senior Indebtedness, and the Securities of each and every
series  issued  initially  to an Issuer Trust shall be pari passu with all other
Securities  issued  initially  hereunder  to  Issuer  Trusts.

SECTION  13.2.     NO  PAYMENT WHEN SENIOR INDEBTEDNESS IN DEFAULT; PAYMENT OVER
OF  PROCEEDS  UPON  DISSOLUTION,  ETC.

     If  the  Company  shall  default  in  the  payment  of any principal of (or
premium,  if  any)  or interest on any Senior Indebtedness when the same becomes
due  and  payable,  whether  at maturity or at a date fixed for prepayment or by
declaration  of  acceleration  or  otherwise,  then, upon written notice of such
default  to  the  Company  by  the holders of Senior Indebtedness or any trustee
therefor, unless and until such default shall have been cured or waived or shall
have  ceased  to  exist,  no  direct  or  indirect  payment  (in cash, property,
securities,  by  set-off  or  otherwise)  shall  be made or agreed to be made on
account  of  the  principal  of  (or  premium,  if  any)  or interest (including
Additional  Interest,  if  any)  on  any of the Securities, or in respect of any
redemption,  repayment,  retirement, purchase or other acquisition of any of the
Securities.

     In  the  event  of  (i)  any  insolvency,  bankruptcy,  receivership,
conservatorship, liquidation, reorganization, readjustment, composition or other
similar  proceeding relating to the Company, its creditors or its property, (ii)
any  proceeding  for  the  liquidation,  dissolution  or other winding-up of the
Company,  voluntary  or  involuntary,  whether  or  not  involving insolvency or
bankruptcy  proceedings,  (iii) any assignment by the Company for the benefit of
creditors  or (iv) any other marshalling of the assets of the Company (each such
event,  if  any,  herein  sometimes  referred  to as a "Proceeding"), all Senior
                                                        ----------
Indebtedness  (including any interest thereon accruing after the commencement of
any  such  proceedings)  shall  first  be  paid  in  full  before any payment or

                                      -70-
<PAGE>
distribution,  whether  in  cash, securities or other property, shall be made to
any  Holder  of  any  of  the  Securities  on  account  thereof.  Any payment or
distribution,  whether  in  cash,  securities  or  other  property  (other  than
securities  of  the  Company  or  any  other  entity  provided  for by a plan of
reorganization or readjustment, the payment of which is subordinate, at least to
the  extent  provided  in  these  subordination  provisions  with respect to the
indebtedness  evidenced  by  the  Securities,  to  the  payment  of  all  Senior
Indebtedness  at  the  time  outstanding and to any securities issued in respect
thereof  under  any  such  plan  of reorganization or readjustment), which would
otherwise  (but for these subordination provisions) be payable or deliverable in
respect  of  the Securities of any series shall be paid or delivered directly to
the  holders  of  Senior  Indebtedness  in  accordance  with the priorities then
existing  among  such  holders  until  all  Senior  Indebtedness  (including any
interest  thereon  accruing after the commencement of any Proceeding) shall have
been  paid  in  full.

     In  the  event  of  any Proceeding, after payment in full of all sums owing
with  respect  to  Senior  Indebtedness, the Holders of the Securities, together
with  the holders of any obligations of the Company ranking on a parity with the
Securities,  shall  be  entitled  to  be  paid  from the remaining assets of the
Company  the amounts at the time due and owing on account of unpaid principal of
(and  premium,  if  any) and interest (including Additional Interest, if any) on
the  Securities  and  such  other  obligations  before  any  payment  or  other
distribution,  whether  in cash, property or otherwise, shall be made on account
of  any  capital  stock  or any obligations of the Company ranking junior to the
Securities  and  such  other  obligations.

     If,  notwithstanding  the  foregoing,  any  payment  or distribution of any
character  or any security, whether in cash, securities or other property (other
than  securities  of  the  Company or any other entity provided for by a plan of
reorganization or readjustment, the payment of which is subordinate, at least to
the  extent  provided  in  these  subordination  provisions  with respect to the
indebtedness  evidenced  by  the  Securities,  to  the  payment  of  all  Senior
Indebtedness  at  the  time  outstanding and to any securities issued in respect
thereof  under any plan of reorganization or readjustment), shall be received by
the Trustee or any Holder in contravention of any of the terms hereof and before
all  Senior  Indebtedness  shall  have  been  paid  in  full,  such  payment  or
distribution  or  security  shall  be  received in trust for the benefit of, and
shall  be  paid  over or delivered and transferred to, the holders of the Senior
Indebtedness  at  the  time  outstanding  in accordance with the priorities then
existing  among  such  holders  for  application  to  the  payment of all Senior
Indebtedness  remaining  unpaid,  to the extent necessary to pay all such Senior
Indebtedness  in full.  In the event of the failure of the Trustee or any Holder
to  endorse or assign any such payment, distribution or security, each holder of
Senior  Indebtedness  is  hereby irrevocably authorized to endorse or assign the
same.

     No  present or future holder of any Senior Indebtedness shall be prejudiced
in  the  right  to  enforce  subordination  of the indebtedness evidenced by the
Securities  by  any  act  or failure to act on the part of the Company.  Nothing
contained  herein  shall  impair,  as  between  the  Company  and the Holders of
Securities  of each series, the obligation of the Company to pay to such Holders
the  principal  of  (and  premium,  if  any)  and interest (including Additional
Interest)  on  such  Securities  or prevent the Trustee or the Holder (or to the
extent  expressly  provided  herein,  the holder of any Capital Securities) from

                                      -71-
<PAGE>
exercising all rights, powers and remedies otherwise permitted by applicable law
or  hereunder  upon  a default or Event of Default hereunder, all subject to the
rights  of the holders of the Senior Indebtedness to receive cash, securities or
other  property  otherwise  payable  or  deliverable  to  the  Holders.

     Senior  Indebtedness  shall  not be deemed to have been paid in full unless
the holders thereof shall have received cash, securities or other property equal
to  the  amount  of  such  Senior  Indebtedness  then  outstanding.

     The  Trustee  and  the  Holders  shall take such action (including, without
limitation, the delivery of this Indenture to an agent for the holders of Senior
Indebtedness  or  consent  to  the  filing of a financing statement with respect
hereto)  as  may,  in  the  opinion  of  counsel  designated by the holders of a
majority in principal amount of the Senior Indebtedness at the time outstanding,
be  necessary  or  appropriate  to assure the effectiveness of the subordination
effected  by  these  provisions.

     The provisions of this Section 13.2 shall not impair any rights, interests,
remedies  or  powers  of  any  secured creditor of the Company in respect of any
security  interest  the creation of which is not prohibited by the provisions of
this  Indenture.

     The  securing  of  any  obligations  of the Company, otherwise ranking on a
parity  with  the  Securities  or  ranking junior to the Securities shall not be
deemed  to prevent such obligations from constituting, respectively, obligations
ranking  on  a  parity  with the Securities or ranking junior to the Securities.

SECTION  13.3.     PAYMENT  PERMITTED  IF  NO  DEFAULT.

     Nothing  contained in this Article or elsewhere in this Indenture or in any
of  the Securities shall prevent (a) the Company, at any time, except during the
pendency  of  the conditions described in the first paragraph of Section 13.2 or
of  any Proceeding referred to in Section 13.2, from making payments at any time
of  principal  of  (and  premium,  if  any)  or  interest  (including Additional
Interest) on the Securities, or (b) the application by the Trustee of any monies
deposited  with it hereunder to the payment of or on account of the principal of
(and  premium,  if  any)  or interest (including any Additional Interest) on the
Securities  or  the retention of such payment by the Holders, if, at the time of
such  application  by  the Trustee, the Trustee did not have knowledge that such
payment  would  have  been  prohibited  by  the  provisions  of  this  Article.

SECTION  13.4.     SUBROGATION TO RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS; ETC.

     Upon  and following the payment in full of all amounts due or to become due
on  all  Senior  Indebtedness, or the provision for such payment in cash or cash
equivalents  or  otherwise  in  a  manner  satisfactory to the holders of Senior
Indebtedness, the Holders of the Securities shall be subrogated to all rights of
the holders of such Senior Indebtedness (equally and ratably with the holders of

                                      -72-
<PAGE>
all  indebtedness  of  the  Company that by its express terms is subordinated to
Senior  Indebtedness  of  the  Company  to  substantially the same extent as the
Securities  are  subordinated to the Senior Indebtedness and is entitled to like
rights of subrogation by reason of any payments or distributions made to holders
of  such  Senior Indebtedness) to receive any further payments and distributions
of cash, property and securities applicable to the Senior Indebtedness until the
principal  of  (and premium if any) and interest (including Additional Interest)
on  the Securities shall be paid in full.  Subject to the payment in full of all
Senior  Indebtedness,  the  Holders  of  Securities  of  each  series,  shall be
subrogated  to  all  rights of any holders of Senior Indebtedness to receive any
further  payments  or  distributions applicable to the Senior Indebtedness until
the  indebtedness evidenced by the Securities of such series, if any, shall have
been paid in full.  Any such payments or distributions received by such Holders,
by  reason  of  such  subrogation,  of  cash, securities or other property which
otherwise  would  be  paid  or distributed to the holders of Senior Indebtedness
shall, as between the Company and its creditors other than the holders of Senior
Indebtedness, on the one hand, and such Holders, on the other hand, be deemed to
be  a  payment  by  the  Company  on  account of Senior Indebtedness, and not on
account  of  the Securities of such series.  No payments or distributions to the
holders  of the Senior Indebtedness of any cash, property or securities to which
the  Holders  of  the Securities or the Trustee would be entitled except for the
provisions  of  this Article, and no payments over pursuant to the provisions of
this  Article to the holders of Senior Indebtedness by Holders of the Securities
or the Trustee, shall, as among the Company, its creditors other than holders of
Senior  Indebtedness,  and  the  Holders  of  the  Securities, be deemed to be a
payment  or  distribution  by  the  Company  to  or  on  account  of  the Senior
Indebtedness.

SECTION  13.5.     PROVISIONS  SOLELY  TO  DEFINE  RELATIVE  RIGHTS.

     The  provisions of this Article are and are intended solely for the purpose
of defining the relative rights of the Holders of the Securities on the one hand
and  the holders of Senior Indebtedness on the other hand.  Nothing contained in
this  Article or elsewhere in this Indenture or in the Securities is intended to
or shall:  (a) impair, as between the Company and the Holders of the Securities,
the  obligations of the Company, which are absolute and unconditional, to pay to
the  Holders  of  the  Securities  the  principal  of  (and premium, if any) and
interest  (including  any Additional Interest) on the Securities as and when the
same  shall become due and payable in accordance with their terms; or (b) affect
the  relative  rights  against  the Company of the Holders of the Securities and
creditors  of  the Company other than their rights in relation to the holders of
Senior  Indebtedness;  or  (c) prevent the Trustee or the Holder of any Security
(or to the extent expressly provided herein, the holder of any Capital Security)
from  exercising all remedies otherwise permitted by applicable law upon default
under  this  Indenture,  including  filing  and voting claims in any Proceeding,
subject  to  the  rights,  if  any,  under this Article of the holders of Senior
Indebtedness  to  receive  cash,  property  and  securities otherwise payable or
deliverable  to  the  Trustee  or  such  Holder.

SECTION  13.6.     TRUSTEE  TO  EFFECTUATE  SUBORDINATION.

                                      -73-
<PAGE>
     Each  Holder  of a Security by his or her acceptance thereof authorizes and
directs the Trustee on his or her behalf to take such action as may be necessary
or  appropriate  to acknowledge or effectuate the subordination provided in this
Article  and  appoints  the  Trustee his or her attorney-in-fact for any and all
such  purposes.

SECTION  13.7.     NO  WAIVER  OF  SUBORDINATION  PROVISIONS.

     No  right  of  any  present  or future holder of any Senior Indebtedness to
enforce  subordination  as  herein  provided  shall  at  any  time in any way be
prejudiced  or  impaired by any act or failure to act on the part of the Company
or  by  any  act or failure to act, in good faith, by any such holder, or by any
noncompliance  by  the  Company with the terms, provisions and covenants of this
Indenture,  regardless of any knowledge thereof that any such holder may have or
be  otherwise  charged  with.

     Without  in  any  way  limiting the generality of the immediately preceding
paragraph,  the holders of Senior Indebtedness may, at any time and from time to
time,  without  the  consent  of  or notice to the Trustee or the Holders of the
Securities  of  any  series, without incurring responsibility to such Holders of
the  Securities and without impairing or releasing the subordination provided in
this  Article  or the obligations hereunder of such Holders of the Securities to
the  holders  of  Senior Indebtedness, do any one or more of the following:  (i)
change  the  manner, place or terms of payment or extend the time of payment of,
or  renew or alter, Senior Indebtedness, or otherwise amend or supplement in any
manner  Senior  Indebtedness  or  any  instrument  evidencing  the  same  or any
agreement  under  which Senior Indebtedness is outstanding, (ii) sell, exchange,
release  or  otherwise  deal  with  any property pledged, mortgaged or otherwise
securing  Senior Indebtedness, (iii) release any Person liable in any manner for
the  collection  of  Senior  Indebtedness,  and  (iv)  exercise  or refrain from
exercising  any  rights  against  the  Company  and any other Person; and Senior
Indebtedness  shall  continue to be Senior Indebtedness entitled to the benefits
of  the  subordination  provisions  of  this  Article  XIII.

SECTION  13.8.     NOTICE  TO  TRUSTEE.

     The  Company  shall  give prompt written notice to a Responsible Officer of
the  Trustee  of any fact known to the Company that would prohibit the making of
any  payment to or by the Trustee in respect of the Securities.  Notwithstanding
the  provisions  of  this  Article or any other provision of this Indenture, the
Trustee  shall  not be charged with knowledge of the existence of any facts that
would  prohibit the making of any payment to or by the Trustee in respect of the
Securities,  unless  and  until  a Responsible Officer of the Trustee shall have
received  written  notice  thereof  from  the  Company  or  a  holder  of Senior
Indebtedness  or  from  any trustee, agent or representative therefor; provided,
however,  if the Trustee shall not have received the notice provided for in this
Section  at  least  two  Business Days prior to the date upon which by the terms
hereof  any monies may become payable for any purpose (including, the payment of
the principal of (and premium, if any, on) or interest (including any Additional
Interest)  on  any  Security),  then,  anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such

                                      -74-
<PAGE>
monies  and  to  apply  the same to the purpose for which they were received and
shall  not  be affected by any notice to the contrary that may be received by it
within  two  Business  Days  prior  to  such  date.

     Subject  to the provisions of Section 6.1, the Trustee shall be entitled to
rely  on the delivery to it of a written notice by a Person representing himself
or  herself  to  be  a  holder  of  Senior  Indebtedness  (or  a  trustee  or
attorney-in-fact  therefor)  to  establish  that such notice has been given by a
holder  of Senior Indebtedness (or a trustee or attorney-in-fact therefor).  The
Trustee  shall immediately notify the Company by telephone of the receipt of any
such  notice.  In  the  event  that  the  Trustee  determines in good faith that
further evidence is required with respect to the right of any Person as a holder
of Senior Indebtedness to participate in any payment or distribution pursuant to
this  Article,  the  Trustee  may request such Person to furnish evidence to the
reasonable  satisfaction  of the Trustee as to the amount of Senior Indebtedness
held  by such Person, the extent to which such Person is entitled to participate
in  such  payment or distribution and any other facts pertinent to the rights of
such  Person  under  this  Article,  and  if such evidence is not furnished, the
Trustee  may  defer any payment to such Person pending judicial determination as
to  the  right  of  such  Person  to  receive  such  payment.

SECTION  13.9.     RELIANCE  ON  JUDICIAL  ORDER  OR  CERTIFICATE OF LIQUIDATING
AGENT.

     Upon  any  payment  or distribution of assets of the Company referred to in
this  Article,  the  Trustee,  subject to the provisions of Section 6.1, and the
Holders  of  the  Securities  shall be entitled to rely upon any order or decree
entered  by  any  court  of  competent  jurisdiction in which such Proceeding is
pending,  or  a certificate of the trustee in bankruptcy, receiver, conservator,
liquidating  trustee, custodian, assignee for the benefit of creditors, agent or
other Person making such payment or distribution, delivered to the Trustee or to
the  Holders of Securities, for the purpose of ascertaining the Persons entitled
to  participate  in  such  payment  or  distribution,  the holders of the Senior
Indebtedness  and  other  indebtedness  of  the  Company,  the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts  pertinent  thereto  or  to  this  Article.

SECTION  13.10.     TRUSTEE  NOT  FIDUCIARY  FOR HOLDERS OF SENIOR INDEBTEDNESS.

     The  Trustee, in its capacity as trustee under this Indenture, shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness and shall
not  be liable to any such holders if it shall in good faith mistakenly pay over
or  distribute to Holders of Securities or to the Company or to any other Person
cash,  property  or securities to which any holders of Senior Indebtedness shall
be  entitled  by  virtue  of  this  Article  or  otherwise.

SECTION  13.11.     RIGHTS  OF  TRUSTEE  AS  HOLDER  OF  SENIOR  INDEBTEDNESS;
PRESERVATION  OF  TRUSTEE'S  RIGHTS.

                                      -75-
<PAGE>
     The  Trustee in its individual capacity shall be entitled to all the rights
set  forth  in  this Article with respect to any Senior Indebtedness that may at
any  time  be  held  by  it,  to  the  same extent as any other holder of Senior
Indebtedness,  and nothing in this Indenture shall deprive the Trustee of any of
its  rights  as  such  holder.

SECTION  13.12.     ARTICLE  APPLICABLE  TO  PAYING  AGENTs.

     In case at any time any Paying Agent other than the Trustee shall have been
appointed  by  the  Company  and be then acting hereunder, the term "Trustee" as
used  in this Article shall in such case (unless the context otherwise requires)
be  construed as extending to and including such Paying Agent within its meaning
as fully for all intents and purposes as if such Paying Agent were named in this
Article  in  addition  to  or  in  place  of  the  Trustee.

SECTION  13.13.     CERTAIN  CONVERSIONS  OR  EXCHANGES  DEEMED  PAYMENT.

     For  purposes of this Article only, (a) the issuance and delivery of junior
securities  upon conversion or exchange of Securities of any series shall not be
deemed  to  constitute  a payment or distribution on account of the principal of
(or premium, if any, on) or interest (including any Additional Interest) on such
Securities  or  on  account  of  the  purchase  or  other  acquisition  of  such
Securities,  and  (b)  the  payment,  issuance  or delivery of cash, property or
securities  (other  than  junior  securities)  upon  conversion or exchange of a
Security  of  any series shall be deemed to constitute payment on account of the
principal  of such security.  For the purposes of this Section, the term "junior
securities"  means  (i) shares of capital stock of any class of the Company, and
(ii)  securities of the Company that are subordinated in right of payment to all
Senior  Indebtedness that may be outstanding at the time of issuance or delivery
of  such  securities to substantially the same extent as, or to a greater extent
than,  the  Securities  are  so  subordinated  as  provided  in  this  Article.

                                     * * * *

This  instrument may be executed in any number of counterparts, each of which so
executed  shall  be  deemed  to  be an original, but all such counterparts shall
together  constitute  but  one  and  the  same  instrument.

                  [Remainder of page left intentionally blank;
                      signatures appear on following page.]

                                      -76-
<PAGE>
     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Indenture to be
duly  executed,  and their respective corporate seals to be hereunto affixed and
attested,  all  as  of  the  day  and  year  first  above  written.

ATTEST:                           PEOPLES BANCORP OF NORTH CAROLINA, INC.

                                  By:  /s/  Tony  W.  Wolfe
                                     -----------------------------------------
/s/ Joseph F. Beaman Jr.          Name:     Tony  W.  Wolfe
-----------------------------     Title:    Chief Executive Officer
Secretary

        [CORPORATE SEAL]

                                  WILMINGTON  TRUST  COMPANY,
                                  as Trustee, and not in its individual capacity

                                  By:  /s/  Anita Dallago
                                     -----------------------------------------
                                  Name:     Anita Dallago
                                  Title:    Financial Services Officer

                                      -77-
<PAGE>
                                    EXHIBIT A
                                    ---------

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE
                                             --------------
STATE  OR  OTHER  JURISDICTION'S  SECURITIES  OR  BLUE  SKY  LAWS,  AND  NO SUCH
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED,  HYPOTHECATED OR DISPOSED OF ABSENT AN EFFECTIVE REGISTRATION STATEMENT
UNDER  THE  SECURITIES  ACT OR SUCH OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS
COVERING  SUCH  SECURITIES  OR  SUCH  TRANSFER  IS  MADE  IN  ACCORDANCE WITH AN
AVAILABLE EXEMPTION UNDER THE SECURITIES ACT, WHICH MAY INCLUDE EXEMPTIONS UNDER
REGULATION  S,  RULE  144A,  RULE 144 OR ANY OTHER AVAILABLE EXEMPTION UNDER THE
SECURITIES  ACT,  AND  ANY OTHER APPLICABLE SECURITIES OR BLUE SKY LAWS, AND THE
COMPANY  RECEIVES  AN  OPINION  OF  COUNSEL  FROM THE HOLDER OF THESE SECURITIES
REASONABLY  SATISFACTORY TO THE COMPANY STATING THAT SUCH OFFER, SALE, TRANSFER,
ASSIGNMENT,  PLEDGE,  HYPOTHECATION,  OR  DISPOSITION  IS  EXEMPT  FROM  THE
REGISTRATION  REQUIREMENTS  OF  SUCH  SECURITIES  ACT  AND  ANY OTHER APPLICABLE
SECURITIES  OR  BLUE  SKY  LAWS.

THIS  SECURITY  IS NOT A DEPOSIT OR AN OBLIGATION OF ANY DEPOSITORY INSTITUTION,
IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
GOVERNMENT  AGENCY,  AND  IS  NOT  SECURED.

                     PEOPLES BANCORP OF NORTH CAROLINA, INC.

                           SERIES 2001-1 FLOATING RATE
                         JUNIOR SUBORDINATED DEBENTURES

                              DUE DECEMBER 31, 2031

                                                      Aggregate Principal Amount
Certificate  No.  -001-                                     $14,433,000.00

     PEOPLES  BANCORP OF NORTH CAROLINA, INC., a North Carolina corporation (the
"Company,"  which  term  includes  any  successor  Person  under  the  Indenture
 -------
hereinafter  referred  to),  for  value received, hereby promises to pay to PEBK
CAPITAL  TRUST I, a statutory business trust created under the laws of the State
of  Delaware,  or registered assigns, the principal sum of FOURTEEN MILLION FOUR
HUNDRED  THIRTY-THREE  THOUSAND  AND NO/100 DOLLARS ($14,433,000.00) on December
31,  2031;  provided  that  the  Company  may shorten the Stated Maturity of the

                                      -78-
<PAGE>
principal of this Security to a date not earlier than December 31, 2006, subject
to  certain  conditions  specified  in  Section  3.15  of  the Indenture, AND TO
REDEMPTION  BY  THE Company as provided in Section 11.7 of the Indenture, but in
no  event shall the Stated Maturity be a date later than December 31, 2031.  The
Company  further  promises  to  pay  interest on said principal from the date of
issuance,  or  from  the most recent Interest Payment Date to which interest has
been  paid  or  duly  provided  for, quarterly (subject to deferral as set forth
herein)  in  arrears on March 31, June 30, September 30, and December 31 of each
year (each, a "Distribution Date"), commencing December 31, 2001 at the floating
               -----------------
rate  per  annum,  reset  quarterly  on  each  Distribution  Date  for  the next
succeeding  quarter,  equal  to  the  prime rate of interest so published in the
"Money  Rates"  table  in the Eastern Edition of The Wall Street Journal for the
last  business day of each of March, June, September and December, as applicable
(or  if more than one rate is so indicated in The Wall Street Journal, the prime
rate shall equal the highest rate provided), plus 50 basis points (the "Floating
                                                                        --------
Rate")  on  the principal amount outstanding hereunder, together with Additional
----
Sums,  if any, as provided in Section 10.6 of the Indenture, until the principal
hereof  is  paid  or  duly  provided  for  or  made  available for payment.  Any
principal,  premium  or  Additional Sums and any overdue installment of interest
not  paid  when due shall bear Additional Interest at the Floating Rate  (to the
extent  that  the  payment  of  such  interest  shall  be  legally enforceable),
compounded quarterly, from the dates such amounts are due until they are paid or
made  available for payment.  The amount of interest payable for any period less
than  a full interest period shall be computed on the basis of a 360-day year of
twelve  30-day  months and the actual number of days elapsed during that period.
The  amount  of  interest payable for any full interest period shall be computed
using  a  year consisting of twelve 30-day months.  The interest so payable, and
punctually  paid  or  duly  provided  for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Holder at the close of business on the
Regular  Record  Date  for  such interest installment.  Any such interest not so
punctually  paid or duly provided for shall forthwith cease to be payable to the
Holder  on  such  Regular  Record  Date  and  may  either  be paid to the Holder
registered  at the close of business on a Special Record Date for the payment of
such  Defaulted  Interest  to  be  fixed by the Trustee (notice whereof shall be
given  to  Holders  of  Securities of this series not less than 10 days prior to
such  Special Record Date) or be paid at any time in any other lawful manner not
inconsistent  with the requirements of any securities exchange, if any, on which
the  Securities  of  this  series  may be listed, and upon such notice as may be
required  by  such  exchange,  all  as  more  fully  provided in said Indenture.

     So  long as no Event of Default has occurred and is continuing, the Company
shall  have  the right as provided in Section 3.12 of the Indenture, at any time
during  the  term  of  this  Security, from time to time to defer the payment of
interest  on  this  Security for up to 20 consecutive quarterly interest payment
periods  with  respect  to  each  deferral period (each, an "Extension Period"),
                                                             ----------------
during  which  Extension  Periods  the  Company  shall have the right to make no
payments  or  partial  payments of interest on any Interest Payment Date, and at
the  end  of  which  the  Company shall pay all interest then accrued and unpaid
including  Additional  Interest,  as  provided below; provided, however, that no
Extension  Period  shall  extend  beyond the Stated Maturity of the principal of
this  Security  and  no  such  Extension  Period may end on a date other than an
Interest Payment Date; and provided, further, however, during any such Extension
Period,  the Company shall not (i) declare or pay any dividends or distributions
on,  or redeem, purchase, acquire or make a liquidation payment with respect to,
any  of  the  Company's  capital stock, or (ii) make any payment of principal or
interest  or  premium,  if  any,  on  or  repay,  repurchase  or redeem any debt
securities of the Company that rank pari passu in all respects with or junior in
interest  to  this  Security  (other  than (a) repurchases, redemptions or other
acquisitions  of  shares  of capital stock of the Company in connection with any
employment contract, benefit or incentive plan or other similar arrangement with
or  for  the  benefit  of  any  one  or  more  employees, officers, directors or
consultants  of  the  Company  or  any of its subsidiaries, in connection with a
dividend  reinvestment or stock purchase plan or in connection with the issuance
of  capital  stock of the Company (or securities convertible into or exercisable
for  such  capital stock) as consideration in an acquisition transaction entered
into prior to the applicable Extension Period, (b) as a result of an exchange or
conversion of any class or series of the Company's capital stock (or any capital

                                      -79-
<PAGE>
stock  of  a Subsidiary of the Company) for any class or series of the Company's
capital  stock  or  of any class or series of the Company's indebtedness for any
class  or  series of the Company's capital stock, (c) the purchase of fractional
interests in shares of the Company's capital stock pursuant to the conversion or
exchange  provisions  of  such  capital stock or the security being converted or
exchanged, (d) any declaration of a dividend in connection with any Rights Plan,
or the issuance of rights, stock or other property under any Rights Plan, or the
redemption  or  repurchase  of  rights pursuant thereto, (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock  issuable  upon  exercise of such warrants, options or other rights is the
same  stock as that on which the dividend is being paid or ranks pari passu with
or  junior  to  such stock, or (f) payments by the Company under the Guarantee).
Prior  to  the termination of any such Extension Period, the Company may further
defer  the  payment  of interest, provided that no Event of Default has occurred
and  is  continuing  and  provided  further, no Extension Period shall exceed 20
consecutive  quarterly  interest  payment  periods,  extend  beyond  the  Stated
Maturity  of  the  principal  of  this  Security  or end on a date other than an
Interest  Payment  Date.  Upon  the termination of any such Extension Period and
upon  the payment of all accrued and unpaid interest and any Additional Interest
then  due  on  any  Interest  Payment Date, the Company may elect to begin a new
Extension Period, subject to the above conditions.  No interest shall be due and
payable  during  an  Extension  Period,  except  at  the  end  thereof, but each
installment  of  interest  that would otherwise have been due and payable during
such  Extension  Period  shall  bear Additional Interest (to the extent that the
payment  of such interest shall be legally permissible) at the Floating Rate per
annum,  compounded  quarterly and calculated as set forth in the first paragraph
of  this Security, from the date on which such amounts would otherwise have been
due  and  payable  until  paid or made available for payment.  The Company shall
give  the  Holders  of  this  Security and the Trustee notice of its election to
begin  any  Extension  Period  at  least  one  Business  Day  prior  to the next
succeeding  Interest  Payment  Date  on which interest on this Security would be
payable  but  for  such  deferral, or so long as such securities are held by the
Issuer  Trust,  at  least  one Business Day prior to the earlier of (i) the next
succeeding  date on which Distributions on the Capital Securities of such Issuer
Trust  would  be  payable  but  for  such deferral, and (ii) the record date for
determining  the  holders  of  such  Capital  Securities  entitled  to  such
Distributions  on  the  Capital  Securities.

     Payment  of  the  principal  of  (and premium, if any) and interest on this
Security will be made at the office or agency of the Company maintained for that
purpose  in  the United States, in such coin or currency of the United States of
America  as  at  the  time  of payment is legal tender for payment of public and
private  debts,  which  unless  otherwise  changed  by  the Company shall be the
Corporate  Trust  Office.

     The  indebtedness  evidenced by this Security is, to the extent provided in
the Indenture, subordinate and subject in right of payments to the prior payment
in  full  of all Senior Indebtedness, and this Security is issued subject to the
provisions of the Indenture with respect thereto.  Each Holder of this Security,
by  accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes  and directs the Trustee on his or her behalf to take such actions as
may be necessary or appropriate to effectuate the subordination so provided, and
(c)  appoints  the  Trustee  his  or  her  attorney-in-fact for any and all such
purposes.  Each  Holder  hereof,  by  his  or  her acceptance hereof, waives all
notice of the acceptance of the subordination provisions contained herein and in
the  Indenture by each holder of Senior Indebtedness, whether now outstanding or
hereafter  incurred,  and  waives  reliance  by  each  such  holder  upon  said
provisions.

     Reference  is  hereby  made  to the further provisions of this Security set
forth  on  the  reverse  hereof, which further provisions shall for all purposes
have  the  same  effect  as  if  set  forth  at  this  place.

     Unless  the  certificate  of authentication hereon has been executed by the
Trustee  referred  to  on  the reverse hereof by manual signature, this Security
shall  not  be  entitled  to  any  benefit  under  the  Indenture or be valid or
obligatory  for  any  purpose.

                                      -80-
<PAGE>
     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  under  its  corporate  seal.

                                         PEOPLES BANCORP OF NORTH CAROLINA, INC.

                                         By: ___________________________________
                                         Name:
                                         Title:

Attest:

____________________________
     Secretary

[CORPORATE  SEAL]

This  is  one  of the Securities of the series designated therein referred to in
the  within-mentioned  Indenture.

Dated:_______________      WILMINGTON  TRUST  COMPANY
                           not in its individual capacity, but solely as Trustee

                                    By: _____________________________________
                                              Authorized  Signatory

                                      -81-
<PAGE>
                               REVERSE OF SECURITY

     This  Security  is  one  of  a  duly  authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
                            ----------
series  under  the Junior Subordinated Indenture, dated as of December ___, 2001
(herein  called  the  "Indenture"),  between  the  Company  and Wilmington Trust
                       ---------
Company,  as  Trustee  (herein  called  the  "Trustee,"  which term includes any
                                              -------
successor  trustee  under  the Indenture), to which Indenture and all indentures
supplemental  thereto reference is hereby made for a statement of the respective
rights,  limitations of rights, duties and immunities thereunder of the Company,
the  Trustee,  the  holders  of  Senior  Indebtedness  and  the  Holders  of the
Securities,  and  of  the  terms  upon  which the Securities are, and are to be,
authenticated  and  delivered.  This Security is one of the series designated on
the  face  hereof,  and  is  limited  to  the  aggregate  principal  amount  of
$14,433,000.00.

     All  terms used but not defined in this Security, shall have the respective
meanings  provided  in  the  Indenture  or  in  the  Amended  and Restated Trust
Agreement,  dated as of December ___, 2001 (as modified, amended or supplemented
from  time  to  time  the  "Trust  Agreement"), relating to PEBK Capital Trust I
                            ----------------
("Issuer  Trust"),  among  the  Company, as Depositor, the Issuer Trustees named
 --------------
therein,  the Administrators named therein, and the Holders from time to time of
the  Trust  Securities  issued  pursuant  thereto.

     The  Company has the right to redeem this Security (i) on or after December
31,  2006,  in  whole at any time or in part from time to time, or (ii) in whole
(but  not  in  part),  at  any  time within 90 days following the occurrence and
during  the  continuation  of  a Tax Event, Investment Company Event, or Capital
Treatment  Event,  in  each  case  at  the Redemption Price described below. The
redemption  of Securities of any series as permitted or required by the terms of
this  Certificate or the Indenture shall be made in accordance with the terms of
this  Certificate  and  Article  XI  of the Indenture; provided, however, if any
provision  of this Certificate shall conflict with any provision of such Article
XI,  the  provision  of  this  Certificate  shall govern.  Any redemption of any
Security prior to its Stated Maturity shall also be subject to prior notice, and
approval  of  (or  notice  of  intent not to disapprove) the redemption, if then
required  by  the  capital  adequacy  rules  or otherwise by the Federal Reserve
applicable  to  the  Company  at  that  time.

     The  Redemption Price in the case of a redemption under clauses (i) or (ii)
in  the  preceding paragraph shall equal the principal amount hereof (or portion
thereof  to be redeemed in a partial redemption), together with accrued interest
(including  Additional  Interest, if any) up to but excluding the date fixed for
redemption.

     In the event of redemption of this Security in part only, a new Security or
Securities  of  this  series for the unredeemed portion hereof will be issued in
the  name  of  the  Holder  hereof  upon  the  cancellation  hereof.

     The  Indenture  permits,  with  certain exceptions as provided therein, the
Company  and  the  Trustee at any time to enter into a supplemental indenture or
indentures for the purpose of modifying in any manner the rights and obligations
of  the  Company  and  of the Holders of the Securities, with the consent of the
Holders  of  not  less  than  a  majority  in  aggregate principal amount of the
Outstanding  Securities  of  each  series  to  be  affected by such supplemental
indenture.  The  Indenture  also  contains  provisions  permitting  Holders  of
specified  percentages  in  aggregate principal amount of the Securities of each
series  at  the  time Outstanding, on behalf of the Holders of all Securities of
such  series,  to waive compliance by the Company with certain provisions of the
Indenture  and certain past defaults under the Indenture and their consequences.
Any  such  consent  or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of
any  Security  issued  upon  the  registration of transfer hereof or in exchange
herefor  or in lieu hereof, whether or not notation of such consent or waiver is
made  upon  this  Security.

                                      -82-
<PAGE>
     As  provided in and subject to the provisions of the Indenture, if an Event
of Default with respect to the Securities of this series at the time Outstanding
occurs and is continuing, then and in every such case the Trustee or the Holders
of not less than 25% in aggregate principal amount of the Outstanding Securities
of  this  series  may declare the principal amount of all the Securities of this
series  to be due and payable immediately, by a notice in writing to the Company
(and  to  the  Trustee  if  given by Holders), provided that, if the Outstanding
Securities have been issued to and are held by an Issuer Trust, if upon an Event
of Default, the Trustee or such Holders fail to declare the principal of all the
Outstanding  Securities  of  this  series to be immediately due and payable, the
Holders of at least 25% in aggregate Liquidation Amount of the related series of
Capital  Securities  issued  by the Issuer Trust then outstanding shall have the
right  to  make  such  declaration by a notice in writing to the Company and the
Trustee;  and upon any such declaration, the principal amount of and the accrued
interest  (including  Additional Interest, if any) on all the Securities of this
series  shall  become  immediately due and payable, provided that the payment of
principal  and  interest  (including any Additional Interest) on such Securities
shall  remain  subordinated  to  the  extent  provided  in  Article  XIII of the
Indenture.

     No  reference  herein to the Indenture and no provision of this Security or
of  the  Indenture shall alter or impair the obligation of the Company, which is
absolute  and  unconditional,  to pay the principal of (and premium, if any) and
interest  (including  Additional  Interest) on this Security at the times, place
and  rate,  and  in  the  coin  or  currency,  herein  prescribed.

     As  provided  in the Indenture and subject to certain limitations set forth
therein,  the  transfer  of  this  Security  is  registrable  in  the Securities
Register,  upon  surrender  of this Security for registration of transfer at the
office  or  agency of the Company maintained under Section 10.2 of the Indenture
for  such  purpose,  duly endorsed by, or accompanied by a written instrument of
transfer  in  form satisfactory to the Company and the Securities Registrar duly
executed  by,  the  Holder  hereof  or such Holder's attorney duly authorized in
writing, and thereupon one or more new Securities of this series, of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued  to  the  designated  transferee  or  transferees.

     The  Securities of this series are issuable only in registered form without
coupons  in  minimum  denominations  of  $1,000.00  and  integral  multiples  of
$1,000.00 in excess thereof.  To the fullest extent permitted by applicable law,
any  transfer,  exchange  or other disposition of Securities in contravention of
Section  3.6(b)(v)  of  the Indenture shall be deemed to be void and of no legal
effect  whatsoever,  any such transferee shall be deemed not to be the Holder or
owner  of  any beneficial interest in such Securities for any purpose, including
but  not limited to the receipt of interest payable on such Securities, and such
transferee shall be deemed to have no interest whatsoever in such Securities. As
provided  in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of  Securities  of  this  series  and  of  like  tenor of a different authorized
denomination,  as  requested  by  the  Holder  surrendering  the  same.

     No  service  charge  shall be made for any such registration of transfer or
exchange,  but  the Company may require payment of a sum sufficient to cover any
tax  or  other  governmental  charge  payable  in  connection  therewith.

     Prior to due presentment of this Security for registration of transfer, the
Company,  the  Trustee and any agent of the Company or the Trustee may treat the
Person  in  whose  name  this Security is registered as the owner hereof for all
purposes,  whether or not this Security be overdue, and neither the Company, the
Trustee  nor  any  such  agent  shall  be  affected  by  notice to the contrary.

     The  Company  and,  by  its  acceptance  of  this  Security or a beneficial
interest  therein,  the  Holder  of,  and  any Person that acquires a beneficial
interest  in,  this  Security, each agrees that for United States Federal, state

                                      -83-
<PAGE>
and local tax purposes it is intended that this Security constitute indebtedness
and  shall  be  treated  as  such.

     THIS  SECURITY  SHALL  BE  GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS  OF  THE  STATE  OF  NEW  YORK  WITHOUT  REFERENCE  TO  ITS CONFLICT OF LAW
PROVISIONS.

                                      -84-
<PAGE>
                                    EXHIBIT B
                                    ---------

                        RESTRICTED SECURITIES CERTIFICATE

                     (FOR TRANSFERS PURSUANT TO SEC. 3.6(B)
                                OF THE INDENTURE)

Wilmington  Trust  Company,
as  Security  Registrar
1100  North  Market  Street
Wilmington,  Delaware  19890-0001
Attention:     Corporate  Trust  Administration

Re:     Floating  Rate  Junior  Subordinated  Debentures  ("Junior  Subordinated
                                                            --------------------
Debentures")  of  Peoples  Bancorp  of  North  Carolina,  Inc.  (the  "Company")
----------                                                             -------

     Reference  is  made to the Junior Subordinated Indenture, dated as December
19,  2001  (the "Indenture"), among the Company and Wilmington Trust Company, as
                 ---------
Trustee  (as  defined  therein).  Terms  used  herein  and defined in the Junior
Subordinated  Indenture or in Regulation D, Rule 144A or Rule 144 under the U.S.
Securities  Act  of  1933  (the "Securities Act") are used herein as so defined.
                                 --------------

This  certificate  relates  to $50,000.00 aggregate Liquidation Amount of Junior
Subordinated  Debentures,  which  are  evidenced by the following certificate(s)
(the  "Specified  Securities"):
       ---------------------

           CUSIP  No(s).  _________________________

           CERTIFICATE  No(s).  ___________________

           CURRENTLY IN BOOK-ENTRY FORM:  ___Yes  ____No  (check one)

The  person in whose name this certificate is executed below (the "Undersigned")
                                                                   -----------
hereby  certifies  that  either  (i)  it  is  the  sole  beneficial owner of the
Specified Securities or (ii) it is acting on behalf of all the beneficial owners
of  the  Specified  Securities  and  is  duly authorized by them to do so.  Such
beneficial  owner  or owners are referred to herein collectively as the "Owner."
If  the Specified Securities are represented by a Global Security, they are held
through  the Clearing Agency or a Clearing Agency Participant in the name of the
Undersigned,  as or on behalf of the Owner.  If the Specified Securities are not
represented  by  a  Global  Security,  they  are  registered  in the name of the
Undersigned,  as  or  on  behalf  of  the  Owner.

     The  Owner  has requested that the Specified Securities be transferred to a
person  (the  "Transferee")  who  will take delivery in the form of a Restricted
               ----------
Security.  In  connection  with  such transfer, the Owner hereby certifies that,

                                      -85-
<PAGE>
unless  such  transfer  is  being effected pursuant to an effective registration
statement under the Securities Act, it is being effected in accordance with Rule
144A,  Rule  904  or  Rule  144 under the Securities Act or other exemption from
registration under the Securities Act, and all applicable securities laws of the
states  of  the  United  States and other jurisdictions.  Accordingly, the Owner
hereby  further  certifies  as  follows:

     1.     RULE  144A  TRANSFERS.  If  the  transfer  is  being  effected  in
accordance  with  Rule  144A:

          (A)     the  Specified  Securities  are  being transferred to a person
that  the  Owner  and  any  person  acting on its behalf reasonably believe is a
"qualified  institutional  buyer" within the meaning of Rule 144A, acquiring for
its  own  account  or  for  the  account of a qualified institutional buyer; and

          (B)     the  Owner  and  any  person  acting on its behalf have taken
reasonable  steps  to  ensure that the Transferee is aware that the Owner may be
relying  on  Rule  144A  in  connection  with  the  transfer;  and

     2.     RULE 904 TRANSFERS.  If the transfer is being effected in accordance
with  Rule  904:

          (A)     the Owner is not a distributor of the Securities, an affiliate
of the Company or the Issuer Trust or any such distributor or a person acting on
behalf  of  any  of  the  foregoing;

          (B)     the offer of the Specified Securities was not made to a person
in  the  United  States;

          (C)     either:

               (i)  at the time the buy order was originated, the Transferee was
                    outside the United States or the Owner and any person acting
                    on  its  behalf  reasonably believed that the Transferee was
                    outside  the  United  States,  or

               (ii) the  transaction  is  being  executed  in, on or through the
                    facilities  of  the  Eurobond  market,  as  regulated by the
                    Association  of  International   Bond  Dealers,  or  another
                    designated  offshore securities market and neither the Owner
                    nor  any  person  acting  on  its  behalf  knows   that  the
                    transaction  has been prearranged with a buyer in the United
                    States;

          (D)     no directed selling  efforts  within  the  meaning of Rule 902
of Regulation S have been made in the United States by or on behalf of the Owner
or  any  affiliate  thereof;  and

          (E)     the transaction is  not  part  of  a  plan or scheme to evade
the  registration  requirements  of  the  Securities  Act.

                                      -86-
<PAGE>
     3.     RULE  144  TRANSFERS.  If the transfer is being effected pursuant to
Rule  144:

          (A)     the  transfer is  occurring after a holding period of at least
one  year (computed in accordance with paragraph (d) of Rule 144 or such shorter
time  as  may  be  provided  therein)  has  elapsed since the date the Specified
Securities  were  acquired  from  the  Company  or  the  Issuer Trust or from an
affiliate  (as  such  term  is defined in Rule 144) of the Company or the Issuer
Trust,  with the full amount of the purchase price paid at the date of purchase,
whichever  is  later,  and  is  being effected in accordance with the applicable
amount,  manner  of sale and notice requirements of paragraphs (c), (e), (f) and
(h)  of  Rule  144;  or

          (B)     the  transfer  is occurring after a holding period of at least
two  years  (or  such shorter time as may be provided in Rule 144(k) has elapsed
since  the  date  the Specified Securities were acquired from the Company or the
Issuer  Trust  or from an affiliate (as such term is defined in Rule 144) of the
Company  or the Issuer Trust, with the full amount of the purchase price paid at
the  date  of purchase, whichever is later, and the Owner is not, and during the
preceding  three  months has not been, an affiliate of the Company or the Issuer
Trust.

     4.     OTHER  TRANSFERS.  If the Owner seeks to make a transfer in reliance
of any other exemption under the Securities Act, it shall attach hereto a letter
stating  the  exemption  relied upon and the facts under which such exemption is
available  for  the  requested  transfer, and shall attach an opinion of counsel
satisfactory  to  the  Company  stating  that such exemption is available and is
being  properly  used.

          This certificate and the statements contained herein are made for your
benefit  and  the  benefit  of  the  Company,  the Issuer Trust and the Holders.

Dated:________________        __________________________________________________
                              (Print  the  name of the Undersigned, as such term
                              is  defined  in  the  second  paragraph  of  this
                              certificate.)

                              By: _____________________________________________
                              Name: ___________________________________________
                              Title: __________________________________________

                              (If the Undersigned is a corporation, partnership,
                              fiduciary  or  entity,  the  correct  name  of the
                              entity,  and  the  name  and  title  of the person
                              signing  on  behalf  of  the  Undersigned  must be
                              stated.)

                                      -87-
<PAGE>AMENDED AND RESTATED

                                 TRUST AGREEMENT

                                      AMONG

                     PEOPLES BANCORP OF NORTH CAROLINA, INC.
                                  AS DEPOSITOR,

                            WILMINGTON TRUST COMPANY
                              AS PROPERTY TRUSTEE,

                            WILMINGTON TRUST COMPANY,
                            AS DELAWARE TRUSTEE, AND

                                 TONY W. WOLFE,
                                JOSEPH F. BEAMAN,
                                       AND
                               A. JOSEPH LAMPRON,
                                AS ADMINISTRATORS

                          DATED AS OF DECEMBER 19, 2001

                           ___________________________

                              PEBK CAPITAL TRUST I
                           ___________________________

<PAGE>
                              PEBK CAPITAL TRUST I

  Certain Sections of this Trust Agreement relating to Sections 310 through 318
                       of the Trust Indenture Act of 1939:

Trust Indenture Act Section                             Trust Agreement Section
---------------------------                             -----------------------
Section     310  (a)(1). . . . . . . . . . . . . . . . . . . . . . . . . .  8.7
                 (a)(2). . . . . . . . . . . . . . . . . . . . . . . . . .  8.7
                 (a)(3). . . . . . . . . . . . . . . . . . . . . . . . . .  8.9
                 (a)(4). . . . . . . . . . . . . . . . . . . . . . . 2.7(a)(ii)
                 (b) . . . . . . . . . . . . . . . . . . . . . . .8.8, 10.10(b)
Section     311  (a) . . . . . . . . . . . . . . . . . . . . . . 8.13, 10.10(b)
                 (b) . . . . . . . . . . . . . . . . . . . . . . 8.13, 10.10(b)
Section     312  (a) . . . . . . . . . . . . . . . . . . . . . . . . . 10.10(b)
                 (b) . . . . . . . . . . . . . . . . . . . . . . .10.10(b), (f)
                 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . .  5.7
Section     313  (a) . . . . . . . . . . . . . . . . . . . . . . . . . .8.15(a)
                 (a)(4). . . . . . . . . . . . . . . . . . . . . . . . 10.10(c)
                 (b) . . . . . . . . . . . . . . . . . . . . .8.15(c), 10.10(c)
                 (c) . . . . . . . . . . . . . . . . . . . . . . 10.8, 10.10(c)
                 (d) . . . . . . . . . . . . . . . . . . . . . . . . . 10.10(c)
Section     314  (a) . . . . . . . . . . . . . . . . . . . . . . 8.16, 10.10(d)
                 (b) . . . . . . . . . . . . . . . . . . . . . . Not Applicable
                 (c)(1). . . . . . . . . . . . . . . . . .  8.17, 10.10(d), (e)
                 (c)(2). . . . . . . . . . . . . . . . . .  8.17, 10.10(d), (e)
                 (c)(3). . . . . . . . . . . . . . . . . .  8.17, 10.10(d), (e)
                 (e) . . . . . . . . . . . . . . . . . . . . . . 8.17, 10.10(e)
Section     315  (a) . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1(d)
                 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.2
                 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1(c)
                 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1(d)
                 (e) . . . . . . . . . . . . . . . . . . . . . . Not Applicable
Section     316  (a) . . . . . . . . . . . . . . . . . . . . . . Not Applicable
                 (a)(1)(A) . . . . . . . . . . . . . . . . . . . Not Applicable
                 (a)(1)(B) . . . . . . . . . . . . . . . . . . . Not Applicable
                 (a)(2). . . . . . . . . . . . . . . . . . . . . Not Applicable
                 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.13
                 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . .  6.7
Section     317  (a)(1). . . . . . . . . . . . . . . . . . . . . Not Applicable
                 (a)(2). . . . . . . . . . . . . . . . . . . . . . . . . . 8.14
                 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.10
Section     318  (a) . . . . . . . . . . . . . . . . . . . . . . . . . 10.10(a)

Note:     This reconciliation and tie shall not, for any purpose, be deemed to
          be a part of the Trust Agreement.

<PAGE>
                                TABLE OF CONTENTS
                                -----------------

                                                                            Page
                                                                            ----
ARTICLE I        DEFINED TERMS . . . . . . . . . . . . . . . . . . . . . .     1
  SECTION 1.1.   Definitions . . . . . . . . . . . . . . . . . . . . . . .     1

ARTICLE II       CONTINUATION OF THE ISSUER TRUST. . . . . . . . . . . . .    12
  SECTION 2.1.   Name. . . . . . . . . . . . . . . . . . . . . . . . . . .    12
  SECTION 2.2.   Office of the Delaware Trustee; Principal Place of
                 Business. . . . . . . . . . . . . . . . . . . . . . . . .    12
  SECTION 2.3.   Initial Contribution of Trust Property; Organizational
                 Expenses. . . . . . . . . . . . . . . . . . . . . . . . .    13
  SECTION 2.4.   Issuance of the Restricted Capital Securities . . . . . .    13
  SECTION 2.5.   Issuance of the Common Securities; Subscription and
                 Purchase of Junior Subordinated Debentures. . . . . . . .    13
  SECTION 2.6.   Declaration of Trust. . . . . . . . . . . . . . . . . . .    14
  SECTION 2.7.   Authorization to Enter into Certain Transactions. . . . .    14
  SECTION 2.8.   Assets of Trust . . . . . . . . . . . . . . . . . . . . .    17
  SECTION 2.9.   Title to Trust Property . . . . . . . . . . . . . . . . .    17

ARTICLE III      PAYMENT ACCOUNT . . . . . . . . . . . . . . . . . . . . .    17
  SECTION 3.1.   Payment Account . . . . . . . . . . . . . . . . . . . . .    17

ARTICLE IV       DISTRIBUTIONS; REDEMPTION . . . . . . . . . . . . . . . .    18
  SECTION 4.1.   Distributions . . . . . . . . . . . . . . . . . . . . . .    18
  SECTION 4.2.   Redemption. . . . . . . . . . . . . . . . . . . . . . . .    19
  SECTION 4.3.   Subordination of Common Securities. . . . . . . . . . . .    22
  SECTION 4.4.   Payment Procedures. . . . . . . . . . . . . . . . . . . .    22
  SECTION 4.5.   Tax Returns and Reports . . . . . . . . . . . . . . . . .    23
  SECTION 4.6.   Payment of Taxes, Duties, Etc. of the Issuer Trust. . . .    23
  SECTION 4.7.   Payments under Indenture or Pursuant to Direct Actions. .    23
  SECTION 4.8.   Liability of the Holder of Common Securities. . . . . . .    23

ARTICLE V        TRUST SECURITIES CERTIFICATES . . . . . . . . . . . . . .    24
  SECTION 5.1.   Initial Ownership . . . . . . . . . . . . . . . . . . . .    24
  SECTION 5.2.   The Trust Securities Certificates . . . . . . . . . . . .    24
  SECTION 5.3.   Execution and Delivery of Trust Securities Certificates .    24
  SECTION 5.4.   Global Capital Securities . . . . . . . . . . . . . . . .    25
  SECTION 5.5.   Registration of Transfer and Exchange Generally; Certain
                 Transfers and Exchanges; Capital Securities Certificates;
                 Securities Act Legends. . . . . . . . . . . . . . . . . .    26
  SECTION 5.6.   Mutilated, Destroyed, Lost or Stolen Trust Securities
                 Certificates. . . . . . . . . . . . . . . . . . . . . . .    30
  SECTION 5.7.   Persons Deemed Holders. . . . . . . . . . . . . . . . . .    30
  SECTION 5.8.   Access to List of Holders' Names and Addresses. . . . . .    30
  SECTION 5.9.   Maintenance of Office or Agency . . . . . . . . . . . . .    30
  SECTION 5.10.  Appointment of Paying Agent . . . . . . . . . . . . . . .    31
  SECTION 5.11.  Ownership of Common Securities by Depositor . . . . . . .    31
  SECTION 5.12.  Notices to Clearing Agency. . . . . . . . . . . . . . . .    32
  SECTION 5.13.  Rights of Holders . . . . . . . . . . . . . . . . . . . .    32

                                        i
<PAGE>
ARTICLE VI       ACTS OF HOLDERS; MEETINGS; VOTING . . . . . . . . . . . .    34
  SECTION 6.1.   Limitations on Holders' Voting Rights . . . . . . . . . .    34
  SECTION 6.2.   Notice of Meetings. . . . . . . . . . . . . . . . . . . .    35
  SECTION 6.3.   Meetings of Holders . . . . . . . . . . . . . . . . . . .    36
  SECTION 6.4.   Voting Rights . . . . . . . . . . . . . . . . . . . . . .    36
  SECTION 6.5.   Proxies, etc. . . . . . . . . . . . . . . . . . . . . . .    36
  SECTION 6.6.   Holder Action by Written Consent. . . . . . . . . . . . .    36
  SECTION 6.7.   Record Date for Voting and Other Purposes . . . . . . . .    37
  SECTION 6.8.   Acts of Holders . . . . . . . . . . . . . . . . . . . . .    37
  SECTION 6.9.   Inspection of Records . . . . . . . . . . . . . . . . . .    38

ARTICLE VII      REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . . . .    38
  SECTION 7.1.   Representations and Warranties of the Property Trustee
                 and the Delaware Trustee. . . . . . . . . . . . . . . . .    38
  SECTION 7.2.   Representations and Warranties of Depositor . . . . . . .    39

ARTICLE VIII     THE ISSUER TRUSTEES; THE ADMINISTRATORS . . . . . . . . .    40
  SECTION 8.1.   Certain Duties and Responsibilities . . . . . . . . . . .    40
  SECTION 8.2.   Certain Notices . . . . . . . . . . . . . . . . . . . . .    42
  SECTION 8.3.   Certain Rights of Property Trustee. . . . . . . . . . . .    43
  SECTION 8.4.   Not Responsible for Recitals or Issuance of Securities. .    44
  SECTION 8.5.   May Hold Securities . . . . . . . . . . . . . . . . . . .    44
  SECTION 8.6.   Compensation; Indemnity; Fees . . . . . . . . . . . . . .    44
  SECTION 8.7.   Corporate Property Trustee Required; Eligibility of
                 Trustees and Administrators . . . . . . . . . . . . . . .    46
  SECTION 8.8.   Conflicting Interests . . . . . . . . . . . . . . . . . .    46
  SECTION 8.9.   Co-Trustees and Separate Trustee. . . . . . . . . . . . .    46
  SECTION 8.10.  Resignation and Removal; Appointment of Successor . . . .    48
  SECTION 8.11.  Acceptance of Appointment by Successor. . . . . . . . . .    49
  SECTION 8.12.  Merger, Conversion, Consolidation or Succession to
                 Business. . . . . . . . . . . . . . . . . . . . . . . . .    50
  SECTION 8.13.  Preferential Collection of Claims Against Depositor or
                 Issuer Trust. . . . . . . . . . . . . . . . . . . . . . .    50
  SECTION 8.14.  Trustee May File Proofs of Claim. . . . . . . . . . . . .    50
  SECTION 8.15.  Reports by Property Trustee . . . . . . . . . . . . . . .    51
  SECTION 8.16.  Reports to the Property Trustee . . . . . . . . . . . . .    51
  SECTION 8.17.  Evidence of Compliance with Conditions Precedent. . . . .    52
  SECTION 8.18.  Number of Issuer Trustees . . . . . . . . . . . . . . . .    52
  SECTION 8.19.  Delegation of Power . . . . . . . . . . . . . . . . . . .    52
  SECTION 8.20.  Appointment of Administrators . . . . . . . . . . . . . .    53

ARTICLE IX       DISSOLUTION, LIQUIDATION AND MERGER . . . . . . . . . . .    53
  SECTION 9.1.   Dissolution Upon Expiration Date. . . . . . . . . . . . .    53
  SECTION 9.2.   Early Dissolution . . . . . . . . . . . . . . . . . . . .    53
  SECTION 9.3.   Termination . . . . . . . . . . . . . . . . . . . . . . .    54
  SECTION 9.4.   Liquidation . . . . . . . . . . . . . . . . . . . . . . .    54
  SECTION 9.5.   Mergers, Consolidations, Amalgamations or Replacements of
                 the Issuer Trust. . . . . . . . . . . . . . . . . . . . .    56

                                      ii
<PAGE>
ARTICLE X        MISCELLANEOUS PROVISIONS. . . . . . . . . . . . . . . . .    57
  SECTION 10.1.  Limitation of Rights of Holders . . . . . . . . . . . . .    57
  SECTION 10.2.  Amendment . . . . . . . . . . . . . . . . . . . . . . . .    57
  SECTION 10.3.  Separability. . . . . . . . . . . . . . . . . . . . . . .    58
  SECTION 10.4.  Governing Law . . . . . . . . . . . . . . . . . . . . . .    58
  SECTION 10.5.  Payments Due on Non-Business Day. . . . . . . . . . . . .    59
  SECTION 10.6.  Successors. . . . . . . . . . . . . . . . . . . . . . . .    59
  SECTION 10.7.  Headings. . . . . . . . . . . . . . . . . . . . . . . . .    59
  SECTION 10.8.  Reports, Notices and Demands. . . . . . . . . . . . . . .    60
  SECTION 10.9.  Agreement Not to Petition . . . . . . . . . . . . . . . .    60
  SECTION 10.10. Trust Indenture Act; Conflict with Trust Indenture Act. .    61
  SECTION 10.11. Acceptance of Terms of Trust Agreement, Guarantee and
                 Indenture . . . . . . . . . . . . . . . . . . . . . . . .    62

Exhibit A     Certificate of Trust
Exhibit B     Form of Restricted Securities Certificate
Exhibit C     Form of Common Securities Certificate
Exhibit D     Form of Capital Securities Certificate
Exhibit E     Form of Placement Agreement

                                      iii
<PAGE>
                      AMENDED AND RESTATED TRUST AGREEMENT

          THIS  AMENDED  AND RESTATED TRUST AGREEMENT,  dated as of December 19,
2001,  is  by  and  among  (i)  Peoples Bancorp of North Carolina, Inc., a North
Carolina  corporation  (including  any  successors or assigns, the "Depositor"),
                                                                    ---------
(ii)  Wilmington  Trust  Company,  a  Delaware  banking corporation, as property
trustee (in such capacity, the "Property Trustee" and, in its separate corporate
                                ----------------
capacity  and  not  in its capacity as Property Trustee or Delaware Trustee, the
"Bank"),  (iii)  Wilmington  Trust  Company,  a Delaware banking corporation, as
 ----
Delaware  trustee  (in  such  capacity,  the  "Delaware  Trustee") (the Property
                                               -----------------
Trustee  and  the  Delaware  Trustee  are referred to collectively herein as the
"Issuer Trustees"), (iv) the Administrators, as hereinafter defined, and (v) the
 ---------------
several  Holders,  as  hereinafter  defined.

                                   WITNESSETH

          WHEREAS,  the  Depositor and the Delaware Trustee have heretofore duly
declared  and  established  a  business  trust pursuant to the Delaware Business
Trust  Act  by entering into a certain Trust Agreement, dated as of November 27,
2001  (the  "Original  Trust Agreement"), and by the execution and filing by the
             -------------------------
Delaware  Trustee  with  the  Secretary of State of the State of Delaware of the
Certificate  of  Trust, filed on November 27, 2001 (the "Certificate of Trust"),
                                                         --------------------
attached  as  Exhibit  A;  and
              ----------

          WHEREAS,  the  Depositor  and the Delaware Trustee desire to amend and
restate  the  Original  Trust  Agreement  in its entirety as set forth herein to
provide  for,  among  other things, (i) the issuance of the Common Securities by
the  Issuer  Trust  to  the Depositor, (ii) the issuance and sale of the Capital
Securities  by the Issuer Trust pursuant to the Placement Agent Agreement, (iii)
the  acquisition  by  the  Issuer  Trust from the Depositor of all of the right,
title  and  interest in the Junior Subordinated Debentures, (iv) the appointment
of the Administrators and (v) the addition of the Property Trustee as a party to
this  Trust  Agreement.

          NOW  THEREFORE, in consideration of the agreements and obligations set
forth  herein  and  for  other  good and valuable consideration, the receipt and
sufficiency  of  which  are  hereby  acknowledged,  each  party, intending to be
legally  bound,  for the benefit of the other parties and for the benefit of the
Holders, hereby amends and restates the Original Trust Agreement in its entirety
and  agrees,  as  follows:

                                    ARTICLE I

                                  DEFINED TERMS

          SECTION  1.1.  DEFINITIONS.

          For  all  purposes  of  this  Trust  Agreement,  except  as  otherwise
expressly  provided  or  unless  the  context  otherwise  requires:

<PAGE>
          (1)     The  terms  defined in this Article have the meanings assigned
to  them  in  this  Article  and  include  the  plural  as well as the singular;

          (2)     All  other  terms  used  herein  that are defined in the Trust
Indenture  Act,  either  directly  or  by  reference  therein, have the meanings
assigned  to  them  therein;

          (3)     The  words  "include,"  "includes"  and  "including"  shall be
deemed  to  be  followed  by  the  phrase  "without  limitation";

          (4)     All  accounting  terms  used  but  not defined herein have the
meanings  assigned  to  them in accordance with United States generally accepted
accounting  principles  as  in  effect  at  the  time  of  determination;

          (5)     Unless  the  context  otherwise  requires, any reference to an
"Article"  or a "Section" refers to an Article or a Section, as the case may be,
of  this  Trust  Agreement;

          (6)     The  words  "herein", "hereof" and "hereunder" and other words
of  similar  import  refer  to  this  Trust  Agreement as a whole and not to any
particular  Article,  Section  or  other  subdivision;  and

          (7)     All  references  to  the  date  the  Capital  Securities  were
originally  issued  shall  refer  to  the  date  hereof.

          "Act"  has  the  meaning  specified  in  Section  6.8.

          "Additional  Amounts"  means,  with  respect  to Trust Securities of a
given  Liquidation  Amount  and/or  a given period, the amount of any Additional
Interest (as defined in the Indenture) paid by the Depositor on a Like Amount of
Junior  Subordinated  Debentures  for  such  period.

          "Additional  Sums"  has  the  meaning specified in Section 10.6 of the
Indenture.

          "Administrators"  means  each  Person  appointed  in  accordance  with
Section  8.20  solely  in  such Person's capacity as Administrator of the Issuer
Trust  continued  hereunder and not in such Person's individual capacity, or any
successor  Administrator  appointed  as  herein  provided;  with  the  initial
Administrators  being  Tony  W.  Wolfe, Joseph F. Beaman, and A. Joseph Lampron.

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

                                        2
<PAGE>
          "Applicable  Procedures"  mean,  with  respect  to  any  transfer  or
transaction  involving a Global Capital Security or beneficial interest therein,
the  rules  and  procedures of the Depositary for such Capital Security, in each
case  to the extent applicable to such transaction and as in effect from time to
time.

          "Bank"  has  the  meaning  specified  in  the  preamble  to this Trust
Agreement.

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

          (1)     the  entry of a decree or order by a court having jurisdiction
in  the  premises  judging  such Person a bankrupt or insolvent, or approving as
properly  filed  a petition seeking reorganization, arrangement, adjudication or
composition  of  or  in  respect  of such Person under any applicable Federal or
state bankruptcy, insolvency, reorganization or other similar law, or appointing
a  receiver,  conservator, liquidator, assignee, trustee, sequestrator (or other
similar  official)  of such Person or of any substantial part of its property or
ordering  the  winding-up  or liquidation of its affairs, and the continuance of
any  such  decree or order unstayed and in effect for a period of 60 consecutive
days;  or

          (2)     the  institution  by  such  Person  of  proceedings  to  be
adjudicated  a bankrupt or insolvent, or the consent by it to the institution of
bankruptcy  or  insolvency  proceedings  against  it,  or  the filing by it of a
petition  or  answer  or  consent  seeking  reorganization  or  relief under any
applicable  Federal  or  state  bankruptcy,  insolvency, reorganization or other
similar  law,  or the consent by it to the filing of any such petition or to the
appointment  of  a  receiver,  conservator,  liquidator,  assignee,  trustee,
sequestrator  (or similar official) of such Person or of any substantial part of
its  property or the making by it of an assignment for the benefit of creditors,
or the admission by it in writing of its inability to pay its debts generally as
they  become due and its willingness to be adjudicated a bankrupt, or the taking
of  corporate  action  by  such  Person  in  furtherance  of  any  such  action.

          "Bankruptcy  Laws"  has  the  meaning  specified  in  Section  10.9.

          "Board  of Directors" means the board of directors of the Depositor or
the Executive Committee of the board of directors of the Depositor (or any other
committee  of  the  board  of  directors  of  the  Depositor  performing similar
functions)  or a committee designated by the board of directors of the Depositor
(or  any  such  committee),  comprised  of  two  or more members of the board of
directors  of  the  Depositor  or  officers  of  the  Depositor,  or  both.

          "Board  Resolution"  means  a  copy  of  a resolution certified by the
Secretary  or  an Assistant Secretary of the Depositor to have been duly adopted
by  the  Depositor's  Board  of  Directors,  or  such  committee of the Board of
Directors  or  officers  of the Depositor to which authority to act on behalf of
the Board of Directors has been delegated, and to be in full force and effect on
the  date  of  such  certification,  and  delivered  to  the  Issuer  Trustees.

          "Business  Day" means a day other than (a) a Saturday or Sunday, (b) a
day on which banking institutions in the City of New York, New York, the City of
Newton,  North  Carolina,  or the City of Wilmington, Delaware are authorized or

                                        3
<PAGE>
required by law or executive order to remain closed or (c) a day on which either
the  Property  Trustee's  corporate  trust  office  or  the  Debenture Trustee's
corporate  trust  office  is  closed  for  business.

          "Capital  Securities  Certificate"  means  a  certificate  evidencing
ownership  of  Capital Securities, substantially in the form attached as Exhibit
                                                                         -------
D, and shall, unless specified otherwise herein, include a Restricted Securities
-
Certificate,  substantially  in  the  form  attached  hereto  as Exhibit B.  The
                                                                 ---------
Capital  Securities  Certificate  shall  be  issued  initially with a Restricted
Capital  Securities  Legend,  which  shall  remain on such certificate until the
Depositor  and  the  Issuer Trust receive an Opinion of Counsel that such legend
can  be  removed  consistent  with  the  Securities  Act.

          "Capital  Security" means a preferred undivided beneficial interest in
the  assets of the Issuer Trust, having a Liquidation Amount of $50,000.00 or an
integral  multiple  in  excess  of  such  amount  and having the rights provided
therefor  in  this Trust Agreement, including the right to receive Distributions
and  a  Liquidation  Distribution  as  provided  herein.

          "Capital  Treatment  Event" means, in respect of the Issuer Trust, the
receipt  by  the  Property Trustee of an Opinion of Counsel, experienced in such
matters  and  who  may  be  counsel  to  the Depositor, and determination by the
Depositor  that,  as  a  result of the occurrence of any amendment to, or change
(including  any  announced  prospective  change)  in,  the laws (or any rules or
regulations  thereunder)  of  the  United  States  or  any political subdivision
thereof  or  therein,  or  as  a  result  of  any  official  or  administrative
pronouncement  or  action  (including  any  action  taken  in  connection with a
regulatory  examination  or  in  connection with or as a result of any change in
regulatory  policy)  or  judicial decision interpreting or applying such laws or
regulations,  which  amendment  or  change  is  effective or such pronouncement,
action  or  decision  is  announced  on or after the date of the issuance of the
Capital Securities of the Issuer Trust, there is more than an insubstantial risk
that  the  Depositor  will  not  be  entitled  to  treat  an amount equal to the
Liquidation  Amount  of such Capital Securities as "Tier 1 Capital" (or the then
equivalent  thereof)  for purposes of the risk-based capital adequacy guidelines
of  the  Board of Governors of the Federal Reserve System, as then in effect and
applicable  to  the  Depositor.

          "Cede"  means  Cede  &  Co.,  as  the  nominee  of  the  Depositary.

          "Certificate  of  Trust"  has the meaning specified in the preamble to
this  Trust  Agreement.

          "Clearing  Agency"  means  an  organization  registered as a "clearing
agency"  pursuant  to  Section 17A of the Exchange Act.  The Depositary shall be
the  initial  Clearing  Agency.

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

          "Closing" and "Closing Date" have the respective meanings specified in
the  Placement  Agreement.

                                        4
<PAGE>
          "Code"  means  the  Internal  Revenue  Code  of  1986,  as  amended.

          "Commission"  means  the  United  States  Securities  and  Exchange
Commission,  or,  if  at  any  time  after the execution of this instrument such
Commission  is  not  existing and performing the duties now assigned to it under
the  Trust  Indenture  Act,  then  the body performing such duties at such time.

          "Common  Securities  Certificate"  means  a  certificate  evidencing
ownership of Common Securities, substantially in the form attached as Exhibit C.
                                                                      ---------

          "Common  Securities  Purchase  Agreement"  means the Common Securities
Purchase  Agreement,  dated  of even date herewith, between the Issuer Trust and
the  Depositor,  as  the  same  may  be  amended  from  time  to  time.

          "Common Security" means an undivided beneficial interest in the assets
of  the  Issuer  Trust,  having  a  Liquidation Amount of $1,000.00 and integral
multiples  in  excess  thereof  and  having the rights provided therefor in this
Trust  Agreement, including the right to receive Distributions and a Liquidation
Distribution  as  provided  herein.

          "Corporate  Trust  Office"  means the principal office of the Property
Trustee  located  in  the City of Wilmington, Delaware, which at the time of the
execution  of  this  Trust  Agreement  is  located  at 1100 North Market Street,
Wilmington,  Delaware  19890-0001,  Attention:  Corporate  Trust Administration.

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

          "Debenture Purchase Agreement" means the Junior Subordinated Debenture
Purchase  Agreement,  dated of even date herewith, between the Depositor and the
Issuer  Trust,  as  the  same  may  be  amended  from  time  to  time.

          "Debenture  Redemption  Date"  means,  with  respect  to  any  Junior
Subordinated  Debentures  to be redeemed under the Indenture, the date fixed for
redemption  of  such  Debentures  under  the  Indenture.

          "Delaware  Business  Trust  Act"  means  Chapter 38 of Title 12 of the
Delaware  Code, 12 Del. C. Sec. 3801, et seq., as it may be amended from time to
time.

          "Delaware  Trustee"  means the corporation identified as the "Delaware
Trustee"  in  the  preamble  to  this  Trust Agreement solely in its capacity as
Delaware  Trustee of the Issuer Trust and not in its individual capacity, or its
successor  in  interest  in such capacity, or any successor trustee appointed as
herein  provided.

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

                                        5
<PAGE>
          "Depositor"  has  the  meaning specified in the preamble to this Trust
Agreement.

          "Direct  Action"  has  the  meaning  specified  in  Section  5.13(c).

          "Distribution  Date"  has  the  meaning  specified  in Section 4.1(a).

          "Distributions"  means  amounts  payable  in  respect  of  the  Trust
Securities  as  provided  in  Section  4.1.

          "Early  Termination  Event"  has the meaning specified in Section 9.2.

          "Event of Default" means any one of the following events (whatever the
reason  for  such  Event  of  Default  and  whether  it  shall  be  voluntary or
involuntary  or  be  effected  by  operation of law or pursuant to any judgment,
decree  or  order  of  any  court  or  any  order,  rule  or  regulation  of any
administrative  or  governmental  body):

          (1)     the  occurrence  of  a  Debenture  Event  of  Default;  or

          (2)     default by the Issuer Trust in the payment of any Distribution
when  it  becomes due and payable, and continuation of such default for a period
of  30  days;  or

          (3)     default  by  the Issuer Trust in the payment of any Redemption
Price  of  any  Trust  Security  when  it  becomes  due  and  payable;  or

          (4)     default  in  the  performance,  or  breach,  in  any  material
respect,  of  any  covenant  or  warranty  of  the Issuer Trustees in this Trust
Agreement  (other  than  a  covenant or warranty a default in the performance of
which  or  the  breach  of  which  is dealt with in clause (2) or (3) above) and
continuation  of  such default or breach for a period of 60 days after there has
been  given,  by  registered  or  certified mail, to the Issuer Trustees and the
Depositor  by the Holders of at least 25% in aggregate Liquidation Amount of the
Outstanding  Capital  Securities,  a  written  notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a "Notice
of  Default"  hereunder;  or

          (5)     the  occurrence  of  any  Bankruptcy Event with respect to the
Property  Trustee  or  all  or  substantially all of its property if a successor
Property  Trustee  has  not  been  appointed within a period of 90 days thereof.

          "Exchange  Act"  shall  mean  the  Securities Exchange Act of 1934, as
amended,  and  any  successor  statute  thereto,  as  amended from time to time.

          "Expiration  Date"  has  the  meaning  specified  in  Section  9.1.

          "Global  Capital  Securities  Certificate"  means a Capital Securities
Certificate or Restricted Securities Certificate, as the case may be, evidencing
ownership  of  Capital Securities, the ownership and transfers of which shall be
made  through  book  entries  by  a Clearing Agency as described in Section 5.4.

                                        6
<PAGE>
          "Global  Capital Security" means those Capital Securities evidenced by
the  Global  Capital  Securities  Certificate.

          "Guarantee"  means  the  Guarantee Agreement executed and delivered by
the  Depositor  and  the Guarantee Trustee, contemporaneously with the execution
and  delivery  of  this  Trust  Agreement, for the benefit of the Holders of the
Capital  Securities,  as  amended  from  time  to  time.

          "Guarantee  Trustee"  means  Wilmington  Trust  Company, solely in its
capacity  as the trustee that holds the Guarantee for the benefit of the Holders
and  not  in  its  individual  capacity,  or  its  successor in interest in such
capacity,  or  any  successor  trustee  appointed  as  herein  provided.

          "Holder"  means  a  Person  in  whose  name  a Trust Security or Trust
Securities  is  registered  in the Securities Register; any such Person shall be
deemed  to  be  a  beneficial  owner within the meaning of the Delaware Business
Trust  Act.

          "Indemnified  Person"  has  the  meaning  provided  in  Section  8.6.

          "Indenture"  means  the  Junior  Subordinated Indenture, dated of even
date  herewith,  between  the Depositor and the Indenture Trustee (as amended or
supplemented  from  time  to  time)  relating  to  the  issuance  of  the Junior
Subordinated  Debentures.

          "Indenture Trustee" means Wilmington Trust Company, a Delaware banking
corporation  and  any  successor.

          "Investment  Company Act" means the Investment Company Act of 1940, as
amended.

          "Investment Company Event" means the receipt by the Issuer Trust of an
Opinion  of  Counsel experienced in such matters to the effect that, as a result
of  the  occurrence  of  a  change  in  law  or  regulation  or a written change
(including any announced prospective change) in interpretation or application of
law  or  regulation  by  any  legislative  body,  court,  governmental agency or
regulatory  authority,  there is more than an insubstantial risk that the Issuer
Trust  is  or  will be considered an "investment company" that is required to be
registered  under the Investment Company Act, which change or prospective change
becomes effective or would become effective, as the case may be, on or after the
date  of  the  issuance  of  the  Capital  Securities.

          "Issuer  Trust"  means PEBK Capital Trust I, a Delaware business trust
created  under  the  Delaware  Business  Trust  Act.

          "Issuer  Trustees"  has  the meaning specified in the preamble to this
Trust  Agreement.

                                        7
<PAGE>
          "Junior  Subordinated  Debentures" means the Depositor's Floating Rate
Junior  Subordinated  Deferrable  Interest  Debentures,  due  December 31, 2031,
issued  pursuant  to  the  Indenture.

          "Lien"  means any lien, pledge, charge, encumbrance, mortgage, deed of
trust,  adverse ownership interest, hypothecation, assignment, security interest
or  preference, priority or other security agreement or preferential arrangement
of  any  kind  or  nature  whatsoever.

          "Like  Amount"  means  (a)  with  respect  to  a  redemption  of Trust
Securities,  Trust  Securities having a Liquidation Amount equal to that portion
of  the  principal  amount  of  Junior  Subordinated  Debentures  to  be
contemporaneously  redeemed  in  accordance with the Indenture, allocated to the
Common Securities and to the Capital Securities pro rata based upon the relative
Liquidation  Amounts  of  such classes and (b) with respect to a distribution of
Junior Subordinated Debentures to Holders of Trust Securities in connection with
a dissolution or liquidation of the Issuer Trust, Junior Subordinated Debentures
having  a  principal  amount  equal  to  the  Liquidation  Amount  of  the Trust
Securities  of  the  Holder  to  whom  such  Junior  Subordinated Debentures are
distributed.

          "Liquidation Amount" means the stated amount of $50,000.00 per Capital
Security  and  $1,000.00  per  Common  Security.

          "Liquidation  Date"  means  the  date  on  which  Junior  Subordinated
Debentures  are  to  be distributed to Holders of Trust Securities in connection
with  a dissolution and liquidation of the Issuer Trust pursuant to Section 9.4.

          "Liquidation  Distribution"  has  the  meaning  specified  in  Section
9.4(d).

          "Majority  in  Liquidation  Amount  of  the  Capital  Securities"  or
"Majority  in  Liquidation  Amount  of  the  Common Securities" means, except as
provided by the Trust Indenture Act, Capital Securities or Common Securities, as
the  case may be, representing more than 50% of the aggregate Liquidation Amount
of all then Outstanding Capital Securities or Common Securities, as the case may
be.

          "Officers'  Certificate" means a certificate signed by the Chairman of
the  Board, Vice Chairman of the Board, Chief Executive Officer, President or an
Executive  Vice President, a Senior Vice President or Vice President, and by the
Treasurer,  an  Assistant Treasurer, the Secretary or an Assistant Secretary, of
the  Depositor,  and  delivered  to  the  party  provided herein.  Any Officers'
Certificate  delivered  with  respect to compliance with a condition or covenant
provided  for  in  this  Trust  Agreement  shall  include:

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

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

                                        8
<PAGE>
          (3)     a  statement  that  such  officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to  express  an informed opinion as to whether or not such covenant or condition
has  been  complied  with;  and

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

          "Opinion  of  Counsel"  means a written opinion of counsel, who may be
counsel  for  or an employee of the Depositor or any Affiliate of the Depositor.

          "Original  Trust  Agreement" has the meaning specified in the preamble
to  this  Trust  Agreement.

          "Outstanding," with respect to Trust Securities, means, as of the date
of  determination, all Trust Securities theretofore executed and delivered under
this  Trust  Agreement,  except:

          (1)     Trust  Securities theretofore canceled by the Property Trustee
or  delivered  to  the  Property  Trustee  for  cancellation;

          (2)     Trust  Securities  for whose payment or redemption cash in the
necessary amount has been theretofore deposited with the Property Trustee or any
Paying  Agent  for the Holders of such Capital Securities, provided that if such
Trust  Securities  are  to  be redeemed, notice of such redemption has been duly
given  pursuant  to  this  Trust  Agreement;  and

          (3)     Trust  Securities that have been paid or for which other Trust
Securities  which  have  been  executed and delivered in exchange therefor or in
lieu  thereof  pursuant to Sections 5.4, 5.5 and 5.6; provided, however, that in
determining  whether  the  Holders  of  the  requisite Liquidation Amount of the
Outstanding  Capital  Securities  have given any request, demand, authorization,
direction,  notice, consent or waiver hereunder, Capital Securities owned by the
Depositor,  any  Issuer  Trustee,  any  Administrator  or  any  Affiliate of the
Depositor,  shall  be  disregarded and deemed not to be Outstanding, except that
(a)  in  determining  whether  any  Issuer Trustee or any Administrator shall be
protected  in  relying  upon any such request, demand, authorization, direction,
notice,  consent  or waiver, only Capital Securities that such Issuer Trustee or
such  Administrator,  as  the  case  may  be,  knows  to be so owned shall be so
disregarded  and  (b)  the foregoing shall not apply at any time when all of the
Outstanding  Capital  Securities  are owned by the Depositor, one or more of the
Issuer  Trustees,  one  or more of the Administrators and/or any such Affiliate.
Capital  Securities  so  owned  which  have  been  pledged  in good faith may be
regarded  as  Outstanding  if the pledgee establishes to the satisfaction of the
Administrators  the  pledgee's  right  so  to  act  with respect to such Capital
Securities  and  that  the  pledgee is not the Depositor or any Affiliate of the
Depositor.

          "Owner"  means  each  Person  who  is  the  beneficial owner of Global
Capital  Securities  as reflected in the records of the Clearing Agency or, if a
Clearing  Agency  Participant is not the Owner, then as reflected in the records
of  a  Person  maintaining  an  account  with  such Clearing Agency (directly or
indirectly),  in  accordance  with  the  rules  of  such  Clearing  Agency.

                                        9
<PAGE>
          "Paying  Agent"  means  any  paying agent or co-paying agent appointed
pursuant  to  Section  5.10  and  shall  initially  be  the  Property  Trustee.

          "Payment  Account"  means  a segregated non-interest-bearing corporate
trust  account  maintained with the Property Trustee in its trust department for
the  benefit  of  the Holders in which all amounts paid in respect of the Junior
Subordinated  Debentures  will  be  held  and  from  which the Property Trustee,
through  the Paying Agent, shall make payments to the Holders in accordance with
Sections  4.1,  4.2  and  9.4.

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

          "Placement  Agent"  means  The  Bankers  Bank,  a  Georgia  banking
corporation.

          "Placement  Agreement"  means  the Placement Agent Agreement among the
Depositor,  the  Issuer  Trust  and  the  Placement  Agent.

          "Property  Trustee"  means  the  Person  identified  as  the "Property
Trustee"  in  the  preamble  to  this  Trust Agreement solely in its capacity as
Property  Trustee of the Issuer Trust and not in its individual capacity, or its
successor  in  interest  in  such  capacity,  or  any successor property trustee
appointed  as  herein  provided.

          "Purchase  Agreement"  means,  collectively,  all  purchase agreements
executed  by  or  on  behalf of the Depositor, the Issuer Trust, and the Owners.

          "Redemption  Date"  means,  with  respect  to any Trust Security to be
redeemed,  the  date  fixed  for  such  redemption  by or pursuant to this Trust
Agreement;  provided that each Debenture Redemption Date and the stated maturity
of  the  Junior  Subordinated  Debentures  shall be a Redemption Date for a Like
Amount  of Trust Securities, including but not limited to any date of redemption
pursuant  to  the  occurrence  of  any  Special  Event.

          "Redemption  Price"  means  a  price  equal to the Liquidation Amount,
together  with  accumulated  Distributions to, but excluding, the date fixed for
redemption.

          "Relevant  Trustee"  has  the  meaning  specified  in  Section  8.10.

          "Responsible  Officer"  when used with respect to the Property Trustee
means any officer assigned to the Corporate Trust Office, including any managing
director,  vice  president,  principal,  assistant  vice  president,  assistant
treasurer,  assistant  secretary  or  any  other officer of the Property Trustee
customarily  performing functions similar to those performed by any of the above
designated  officers  and having direct responsibility for the administration of
the  Indenture, and also, with respect to a particular matter, any other officer
to  whom  such  matter  is  referred  because of such officer's knowledge of and
familiarity  with  the  particular  subject.

                                       10
<PAGE>
          "Restricted  Capital  Securities"  means  all  Capital  Securities,
including  those  represented  by  a  Capital  Securities  Certificate  which is
required  pursuant  to  Section  5.5(c)  to bear a Restricted Capital Securities
Legend.  Such  term  includes  the  Global  Capital  Securities  Certificate.

          "Restricted Capital Securities Legend" means a legend substantially in
the  form of the legend required in the form of a Capital Securities Certificate
set  forth  in  Exhibit  D  to  be  placed  upon  a Restricted Capital Security.
                ----------

          "Restricted  Securities Certificate" means a certificate substantially
in  the  form  set  forth  in  Exhibit  B.
                               ----------

          "Securities Act" means the Securities Act of 1933, as amended, and any
successor  statute  thereto,  in  each  case  as  amended  from  time  to  time.

          "Senior  Indebtedness"  has  the  meaning  specified in the Indenture.

          "Securities  Register"  and "Securities Registrar" have the respective
meanings  specified  in  Section  5.5.

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

          "Successor  Capital  Securities Certificate" of any particular Capital
Securities  Certificate means every Capital Securities Certificate issued after,
and  evidencing  all  or a portion of the same beneficial interest in the Issuer
Trust as that evidenced by, such particular Capital Securities Certificate; and,
for the purposes of this definition, any Capital Securities Certificate executed
and  delivered  under  Section  5.6  in  exchange for or in lieu of a mutilated,
destroyed,  lost  or  stolen  Capital  Securities Certificate shall be deemed to
evidence  the  same  beneficial  interest  in the Issuer Trust as the mutilated,
destroyed,  lost  or  stolen  Capital  Securities  Certificate.

          "Successor  Capital  Securities"  has the meaning specified in Section
9.5.

          "Tax  Event"  means  the  receipt by the Issuer Trust of an Opinion of
Counsel  experienced  in  such  matters  to  the effect that, as a result of any
amendment  to,  or  change  (including any announced prospective change) in, the
laws  (or  any  regulations  thereunder)  of  the United States or any political
subdivision  or  taxing  authority  thereof  or  therein,  or as a result of any
official  or  administrative  pronouncement  or  action  or  judicial  decision
interpreting  or applying such laws or regulations, which amendment or change is
effective  or  which  pronouncement, action or decision is announced on or after
the  date  of issuance of the Capital Securities (including, without limitation,
any  of the foregoing arising with respect to, or resulting from, any proceeding
or  other  action  commencing  on  or  before  such date), there is more than an
insubstantial  risk  that  (i) the Issuer Trust is, or will be within 90 days of
the delivery of such Opinion of Counsel, subject to United States federal income
tax  with  respect  to  income  received  or  accrued on the Junior Subordinated
Debentures,  (ii)  interest  payable by the Depositor on the Junior Subordinated

                                       11
<PAGE>
Debentures  is not, or within 90 days of the delivery of such Opinion of Counsel
will not be, deductible by the Depositor, in whole or in part, for United States
federal  income tax purposes, or (iii) the Issuer Trust is, or will be within 90
days  of  the  delivery  of  such  Opinion of Counsel, subject to more than a de
minimis  amount  of  other  taxes,  duties  or  other  governmental  charges.

          "Trust  Agreement" means this Amended and Restated Trust Agreement, as
the  same  may  be  modified,  amended  or  supplemented  in accordance with the
applicable  provisions  hereof,  including (i) all exhibits hereto, and (ii) for
all purposes of this Amended and Restated Trust Agreement any such modification,
amendment  or  supplement,  the  provisions  of the Trust Indenture Act that are
deemed  to be a part of and govern this Amended and Restated Trust Agreement and
any  modification,  amendment  or  supplement,  respectively.

          "Trust  Indenture  Act"  means  the Trust Indenture Act of 1939 or any
successor  statute,  in  each  case  as  amended  from  time  to  time.

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

          "Trust  Securities Certificate" means any one of the Common Securities
Certificates  or  the  Capital  Securities  Certificates.

          "Trust Security" means any one of the Common Securities or the Capital
Securities.

                                   ARTICLE II

                        CONTINUATION OF THE ISSUER TRUST

SECTION  2.1.  NAME.

          The  Issuer  Trust  continued  hereby  shall be known as "PEBK Capital
Trust  I",  as such name may be modified from time to time by the Administrators
following  written  notice  to  the  Holders  of Trust Securities and the Issuer
Trustees, in which name the Administrators and the Issuer Trustees may engage in
the  transactions  contemplated  hereby,  make  and  execute contracts and other
instruments  on  behalf  of  the  Issuer  Trust  and  sue  and  be  sued.

          SECTION  2.2.  OFFICE  OF  THE  DELAWARE  TRUSTEE;  PRINCIPAL PLACE OF
BUSINESS.

          The  address  of  the  Delaware  Trustee  in  the State of Delaware is
Wilmington  Trust  Company,  1100  North  Market  Street,  Wilmington,  Delaware
19890-0001,  Wilmington,  Delaware  19805-1266,  Attention:  Corporate  Trust
Administration,  or  such other address in the State of Delaware as the Delaware
Trustee  may  designate by written notice to the Holders and the Depositor.  The
principal  executive office of the Issuer Trust is in care of Peoples Bancorp of

                                       12
<PAGE>
North  Carolina,  Inc.,  518  West  C  Street,  Newton,  North  Carolina  28658,
Attention:  Tony  W.  Wolfe.

          SECTION  2.3.  INITIAL  CONTRIBUTION OF TRUST PROPERTY; ORGANIZATIONAL
EXPENSES.

          The  Property Trustee acknowledges receipt in trust from the Depositor
in  connection  with  the  Original  Trust Agreement of the sum of $10.00, which
constitutes  the  initial  Trust  Property.  The  Depositor  shall  pay  all
organizational expenses of the Issuer Trust as they arise or shall, upon request
of  any  Issuer  Trustee,  promptly  reimburse  such Issuer Trustee for any such
expenses  paid  by  such Issuer Trustee.  The Depositor shall make no claim upon
the  Trust  Property  for  the  payment  of  such  expenses.

          SECTION  2.4.  ISSUANCE  OF  THE  RESTRICTED  CAPITAL  SECURITIES.

          The  Depositor, the Issuer Trust, and the Placement Agent executed and
delivered  the  Placement  Agreement  pursuant  to the Original Trust Agreement.
Contemporaneously  with  the  execution and delivery of this Trust Agreement, an
Administrator,  on  behalf  of  the  Issuer  Trust,  shall  manually  execute in
accordance  with  Section  5.3  and  the  Property Trustee shall authenticate in
accordance with Section 5.3 and deliver to the Clearing Agency or its custodian,
a  Global  Capital Securities Certificate, registered in the name of Cede & Co.,
in an aggregate amount of 280 Capital Securities having an aggregate Liquidation
Amount  of  $14,000,000.00,  against  receipt of the aggregate purchase price of
such  Capital  Securities  of  $14,000,000.00,  by  the  Property  Trustee.

          SECTION  2.5.  ISSUANCE  OF  THE  COMMON  SECURITIES; SUBSCRIPTION AND
PURCHASE  OF  JUNIOR  SUBORDINATED  DEBENTURES.

          Contemporaneously  with  the  execution  and  delivery  of  this Trust
Agreement,  an  Administrator,  on  behalf of the Issuer Trust, shall execute in
accordance  with  Section  5.3  and  the Property Trustee shall authenticate and
shall  deliver  to  the Depositor, Common Securities Certificates, registered in
the name of the Depositor, having an aggregate Liquidation Amount of $433,000.00
against  receipt  of  the  aggregate purchase price of such Common Securities of
$433,000.00  by  the  Property  Trustee.  Contemporaneously  therewith,  an
Administrator,  on  behalf of the Issuer Trust, shall subscribe for and purchase
from the Depositor the Junior Subordinated Debentures, registered in the name of
the  Issuer  Trust  and  having  an  aggregate  principal  amount  equal  to
$14,433,000.00,  and,  in  satisfaction  of  the  purchase price for such Junior
Subordinated  Debentures,  the  Property Trustee, on behalf of the Issuer Trust,
shall  deliver  to the Depositor the sum of $14,433,000.00 (being the sum of the
amounts delivered to the Property Trustee pursuant to (i) the second sentence of
Section  2.4,  and  (ii)  the first sentence of this Section 2.5) and receive on
behalf  of  the  Issuer  Trust  the  Junior  Subordinated  Debentures.

          SECTION  2.6.  DECLARATION  OF  TRUST.

          The  exclusive  purposes  and functions of the Issuer Trust are to (a)
issue  and  sell Trust Securities and use the proceeds from such sale to acquire
the  Junior  Subordinated  Debentures,  and  (b)  engage  in  only  those  other

                                       13
<PAGE>
activities  necessary,  convenient  or incidental thereto.  The Depositor hereby
appoints  the  Issuer  Trustees as trustees of the Issuer Trust, to have all the
rights,  powers  and  duties  to  the  extent  set  forth herein, and the Issuer
Trustees  hereby  accept such appointment.  The Property Trustee hereby declares
that it will hold the Trust Property in trust upon and subject to the conditions
set  forth  herein  for  the  benefit  of the Issuer Trust and the Holders.  The
Depositor  hereby  appoints  the Administrators, with such Administrators having
all rights, powers and duties set forth herein with respect to accomplishing the
purposes  of  the  Issuer  Trust,  and  the  Administrators  hereby  accept such
appointment; provided, however, that it is the intent of the parties hereto that
such Administrators shall not be trustees or, to the fullest extent permitted by
law, fiduciaries with respect to the Issuer Trust and this Trust Agreement shall
be  construed  in  a  manner  consistent with such intent.  The Property Trustee
shall  have  the  right  and power (but shall not be obligated) to perform those
duties  assigned to the Administrators.  The Delaware Trustee, in such capacity,
shall not be entitled to exercise any powers, nor shall the Delaware Trustee, in
such  capacity,  have  any  of  the duties and responsibilities, of the Property
Trustee  or  the Administrators set forth herein.  The Delaware Trustee, in such
capacity,  shall  be  one  of  the trustees of the Issuer Trust for the sole and
limited  purpose  of fulfilling the requirements of Section 3807 of the Delaware
Business  Trust Act and for taking such actions as are required to be taken by a
Delaware  trustee  under  the  Delaware  Business  Trust  Act.

          SECTION  2.7.  AUTHORIZATION  TO  ENTER  INTO  CERTAIN  TRANSACTIONS.

          (a)     The  Issuer  Trustees and the Administrators shall conduct the
affairs  of  the  Issuer  Trust  in  accordance  with  the  terms  of this Trust
Agreement.  Subject  to  the  limitations  set  forth  in  paragraph (b) of this
Section and in accordance with the following provisions (i), (ii) and (iii), the
Issuer  Trustees  and  the  Administrators  shall  act  as  follows:

               (i)   each  Administrator,  acting  jointly  or  singly, shall:

                    (A)     comply  with  the  Placement Agreement regarding the
          issuance  and  sale  of  the  Trust  Securities;

                    (B)     assist  in  compliance  with  the  Securities  Act,
          applicable  state securities or blue sky laws, and the Trust Indenture
          Act;

                    (C)     assist in the listing of the Capital Securities upon
          such  securities exchange or exchanges, if any, as shall be determined
          by  the  Depositor,  with  the  registration of the Capital Securities
          under  the Exchange Act, if required or if requested by the Depositor,
          and  the  preparation and filing of all periodic and other reports and
          other  documents  pursuant  to  the  foregoing;

                    (D)     execute the Trust Securities on behalf of the Issuer
          Trust  in  accordance  with  this  Trust  Agreement;

                    (E)     execute  and  deliver  an application for a taxpayer
          identification  number  for  the  Issuer  Trust;

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<PAGE>
                    (F)     assist  in  the  filing with the Commission, at such
          time  as  determined  by the Depositor, any registration statement, if
          any,  under  the  Securities  Act  relating  to  the Trust Securities,
          including  any  amendments  thereto;

                    (G)     unless  otherwise  required  by  the Trust Indenture
          Act,  execute  on  behalf  of  the Issuer Trust any documents that the
          Administrators  have  the  power  to  execute  pursuant  to this Trust
          Agreement,  including  without  limitation,  the  Debenture  Purchase
          Agreement  and  the  Common  Securities  Purchase  Agreement;  and

                    (H)     take  any  action  incidental  to  the  foregoing as
          necessary  or  advisable  to  give  effect  to the terms of this Trust
          Agreement.

               (ii)     The  Property Trustee shall have the power and authority
     to act on behalf of the Issuer Trust with respect to the following matters:

                    (A)     the  establishment  of  the  Payment  Account;

                    (B)     the  receipt  of the Junior Subordinated Debentures;

                    (C)     the  receipt  and  collection of interest, principal
          and  any  other  payments  made  in respect of the Junior Subordinated
          Debentures  in  the  Payment  Account;

                    (D)     the  distribution  of amounts owed to the Holders in
          respect  of  the  Trust  Securities;

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

                    (F)     the  sending  of  notices  of  default  and  other
          information regarding the Trust Securities and the Junior Subordinated
          Debentures  to  the  Holders  thereof  in  accordance  with this Trust
          Agreement;

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

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

                    (I)     after  an  Event  of  Default  (other  than  under
          paragraph (2), (3), (4), or (5) of the definition of such term if such
          Event  of  Default  is  by  or  with respect to the Property Trustee),
          comply with the provisions of this Trust Agreement and take any action

                                       15
<PAGE>
          to  give  effect  to the terms of this Trust Agreement and protect and
          conserve  the  Trust  Property for the benefit of the Holders (without
          consideration  of  the  effect  of  any  such action on any particular
          Holder);

     provided,  however,  that  nothing in this Section 2.7(a)(ii) shall require
     the  Property  Trustee to take any action that is not otherwise required in
     this  Trust  Agreement.

               (iii)     The  Administrators  shall  comply  with  the  listing
     requirements  of  the  Capital  Securities upon such securities exchange or
     exchanges,  if  any,  as  shall  be  determined  by  the  Depositor,  the
     registration  of the Capital Securities under the Exchange Act, if required
     or  if  requested  by  the Depositor, and the preparation and filing of all
     periodic  and  other reports and other documents pursuant to the foregoing.

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

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

                    (i)     the  preparation,  execution  and  filing  with  the
     Commission  of  a  registration statement on the appropriate form under the
     Securities  Act or the preparation of offering documents in reliance on one
     or  more exemptions from registration under the Securities Act with respect
     to  the  Capital  Securities;

                    (ii)     the  determination  of  the states in which to take
     appropriate  action  to qualify or register for sale or necessary to obtain
     any exemption from such qualification or registration of all or part of the
     Capital  Securities  and  the determination of any and all such acts, other
     than  actions  that  must be taken by or on behalf of the Issuer Trust, and
     the  advice  to  the Issuer Trustees of actions they must take on behalf of
     the  Issuer  Trust,  and  the  preparation  for execution and filing of any
     documents  to be executed and filed by the Issuer Trust or on behalf of the

                                       16
<PAGE>
     Issuer  Trust,  as  the  Depositor deems necessary or advisable in order to
     comply  with  the applicable laws of any such States in connection with the
     offer  and  sale  of  the  Capital  Securities;

                    (iii)     the negotiation of the terms of, and the execution
     and  delivery  of,  the  Placement  Agreement  and  the  Purchase Agreement
     providing  for  the  sale  of  the  Capital  Securities;  and

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

          (d)     Notwithstanding  anything  herein  to  the  contrary,  the
Administrators  and  the Property Trustee are authorized and directed to conduct
the  affairs  of  the  Issuer  Trust and to operate the Issuer Trust so that the
Issuer  Trust  will  not  be deemed to be an "investment company" required to be
registered  under the Investment Company Act, and will not be taxable other than
as a grantor trust for United States Federal income tax purposes and so that the
Junior  Subordinated Debentures will be treated as indebtedness of the Depositor
for United States Federal income tax purposes.  In this connection, the Property
Trustee  and the Holders of Common Securities are authorized to take any action,
not  inconsistent  with  applicable  law, the Certificate of Trust or this Trust
Agreement,  that the Property Trustee and Holders of Common Securities determine
in  their  discretion to be necessary or desirable for such purposes, as long as
such  action  does not adversely affect in any material respect the interests of
the  Holders  of  the  Outstanding  Capital  Securities.  In  no event shall the
Administrators  or  the  Issuer  Trustees  be  liable to the Issuer Trust or the
Holders  for  any failure to comply with this Section that results from a change
in  law  or  regulations  or  in  the  interpretation  thereof.

          SECTION  2.8.  ASSETS  OF  TRUST.

          The  assets  of  the  Issuer  Trust  shall consist solely of the Trust
Property.

          SECTION  2.9.  TITLE  TO  TRUST  PROPERTY.

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

                                   ARTICLE III

                                 PAYMENT ACCOUNT

          SECTION  3.1.  PAYMENT  ACCOUNT.

          (a)     At  or  prior  to the Closing Date, the Property Trustee shall
establish  the  Payment Account.  The Property Trustee and its agents shall have
exclusive  control  and  sole  right  of  withdrawal with respect to the Payment
Account  for  the purpose of making deposits in and withdrawals from the Payment
Account  in accordance with this Trust Agreement.  All monies and other property
deposited  or held from time to time in the Payment Account shall be held by the

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<PAGE>
Property Trustee in the Payment Account for the exclusive benefit of the Holders
and for distribution as herein provided, including (and subject to) any priority
of  payments  provided  for  herein.

          (b)     The  Property  Trustee  shall  deposit in the Payment Account,
promptly  upon  receipt,  all  payments  of principal of or interest on, and any
other  payments or proceeds with respect to, the Junior Subordinated Debentures.
Amounts  held  in  the  Payment  Account  shall  not be invested by the Property
Trustee  pending  distribution  thereof.

                                   ARTICLE IV

                            DISTRIBUTIONS; REDEMPTION

     SECTION  4.1.  DISTRIBUTIONS.

          (a)     The  Trust Securities represent undivided beneficial interests
in  the Trust Property, and Distributions (including of Additional Amounts) will
be  made  on  the Trust Securities at the rate and on the dates that payments of
interest  (including  of  Additional  Interest, as defined in the Indenture) are
made  on  the  Junior  Subordinated  Debentures.  Accordingly:

               (i)     Distributions on the Trust Securities shall be cumulative
     and  will  accumulate  whether  or  not there are funds of the Issuer Trust
     available  for the payment of Distributions. Distributions shall accumulate
     from  the  date  of issue of the Trust Securities, and, except in the event
     (and  to  the  extent)  that the Depositor exercises its right to defer the
     payment  of  interest on the Junior Subordinated Debentures pursuant to the
     Indenture,  shall  be  payable  quarterly  in arrears on March 31, June 30,
     September 30 and December 31 of each year, commencing on December 31, 2001.
     If  any  date  on  which  a  Distribution is otherwise payable on the Trust
     Securities  is  not  a  Business Day, then the payment of such Distribution
     shall  be  made  on the next succeeding day that is a Business Day (without
     any  additional  Distributions  or  other  payment  in  respect of any such
     delay),  except  that,  if  such  Business  Day  is  in the next succeeding
     calendar  year,  such  payment  shall  be made on the immediately preceding
     Business Day, in each case with the same force and effect as if made on the
     date  on  which  such  payment  was  originally payable (each date on which
     distributions  are  payable  in  accordance  with  this  Section  4.1(a), a
     "Distribution  Date").
      ------------------

               (ii)     The  Trust Securities shall be entitled to Distributions
     payable  at  a floating rate, reset quarterly on each Distribution Date for
     the  next  succeeding  quarter,  equal  to  the  prime  rate of interest so
     published  in  the  "Money  Rates" table in the Eastern Edition of The Wall
     Street  Journal for the last Business Day of each of March, June, September
     and December, as applicable, plus 50 basis points on the liquidation amount
     of  each  Trust  Security  ("Floating  Rate").  If more than one rate is so
                                  --------------
     indicated  in  The  Wall  Street  Journal,  the  prime rate shall equal the
     highest  rate provided therein. The amount of Distributions payable for any
     full  quarterly  period shall be computed on the basis of a 360-day year of
     twelve  30-day months. The amount of Distributions for any period less than
     a  full  quarter  shall  be computed on the basis of a 360-day year and the

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<PAGE>
     actual  number  of  days  elapsed  during  that  period.  The  amount  of
     Distributions  payable  for any period shall include any Additional Amounts
     in  respect  of  such  period.

               (iii)     So  long  as no Debenture Event of Default has occurred
     and is continuing, the Depositor has the right under the Indenture to defer
     the  payment  of interest on the Junior Subordinated Debentures at any time
     and  from  time to time for a period not exceeding 20 consecutive quarterly
     periods  (an  "Extension  Period"),  provided  that no Extension Period may
                    -----------------
     extend  beyond  December  31, 2031 or end on a date that is not a scheduled
     interest  payment  date.  As  a consequence of any such deferral, quarterly
     Distributions  on  the  Trust  Securities  by the Issuer Trust will also be
     deferred  and  the  amount  of  Distributions to which Holders of the Trust
     Securities are entitled will accumulate additional Distributions thereon at
     the  Floating  Rate,  compounded  quarterly,  to  the  extent  permitted by
     applicable  law,  from  the  relevant  payment date for such Distributions,
     computed  in  the  same manner as set forth for Distributions in subsection
     4.1(a)(ii)  immediately  above. The term "Distributions" as used in Section
     4.1  shall  include  any such additional Distributions provided pursuant to
     this  Section  4.1(a)(iii).

               (iv)     Distributions  on  the Trust Securities shall be made by
     the  Property Trustee from the Payment Account and shall be payable on each
     Distribution  Date  only to the extent that the Issuer Trust has funds then
     on  hand  and  available  in  the  Payment  Account for the payment of such
     Distributions.

          (b)     Distributions  on  the  Trust  Securities  with  respect  to a
Distribution  Date shall be payable to the Holders thereof as they appear on the
Securities  Register  for  the  Trust Securities at the close of business on the
relevant  record  date, which shall be at the close of business on the fifteenth
day of the month in which the relevant Distribution Date occurs (or if such date
is  not  a  Business  Day,  the  immediately  preceding  Business  Day).

          SECTION  4.2.  REDEMPTION.

          (a)     On  each  Debenture Redemption Date and on the stated maturity
of  the  Junior  Subordinated  Debentures,  the Issuer Trust will be required to
redeem  a  Like  Amount  of  Trust  Securities  at  the  Redemption  Price.

          (b)     Notice of redemption shall be given by the Property Trustee by
first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days
prior  to the Redemption Date to each Holder of Trust Securities to be redeemed,
at  such  Holder's  address  appearing in the Security Register.  All notices of
redemption  shall  state:

               (i)     the  Redemption  Date;

               (ii)     the  Redemption Price, or if the Redemption Price cannot
     be  calculated  prior  to  the  time the notice is required to be sent, the
     estimate  of  the  Redemption  Price  provided  pursuant  to  the Indenture
     together  with  a  statement  that  it  is  an estimate and that the actual
     Redemption  Price will be calculated on the third Business Day prior to the
     Redemption  Date (and if an estimate is provided, a further notice shall be

                                       19
<PAGE>
     sent  of the actual Redemption Price on the date, or as soon as practicable
     thereafter,  that  notice  of  such  actual  Redemption  Price  is received
     pursuant  to  the  Indenture);

               (iii)     the  CUSIP  number  or  CUSIP  numbers  of  the Capital
     Securities  affected;

               (iv)     if less than all the Outstanding Trust Securities are to
     be  redeemed,  the  identification  and the total Liquidation Amount of the
     particular  Trust  Securities  to  be  redeemed;

               (v)     that  on  the  Redemption  Date the Redemption Price will
     become  due  and  payable  upon each such Trust Security to be redeemed and
     that Distributions thereon will cease to accumulate on and after said date,
     except  as  provided  in  Section  4.2(d)  below;  and

               (vi)     the  place  or  places  where Trust Securities are to be
     surrendered  for  the  payment  of  the  Redemption  Price.

          The  Issuer  Trust  in issuing the Trust Securities may use "CUSIP" or
"private placement" numbers (if then generally in use), and, if so, the Property
Trustee  shall  indicate the "CUSIP" or "private placement" numbers of the Trust
Securities  in  notices  of redemption and related materials as a convenience to
Holders; provided, that any such notice may state that no representation is made
as  to the correctness of such numbers either as printed on the Trust Securities
or  as  contained  in  any  notice  of  redemption  and  related  material.

          (c)     The Trust Securities redeemed on each Redemption Date shall be
redeemed  at  the  Redemption  Price  with  the  applicable  proceeds  from  the
contemporaneous  redemption  of  Junior Subordinated Debentures.  Redemptions of
the  Trust Securities shall be made and the Redemption Price shall be payable on
each  Redemption Date only to the extent that the Issuer Trust has funds then on
hand  and  available  in  the Payment Account for the payment of such Redemption
Price.

          (d)     If the Issuer Trust gives a notice of redemption in respect of
any  Capital  Securities,  then,  by 12:00 noon, Eastern Time, on the Redemption
Date,  subject  to  Section  4.2(c),  the Property Trustee will, with respect to
Capital  Securities  held  in global form, irrevocably deposit with the Clearing
Agency  for  such  Capital  Securities,  to the extent available therefor, funds
sufficient  to  pay  the applicable Redemption Price and will give such Clearing
Agency irrevocable instructions and authority to pay the Redemption Price to the
Holders  of the Capital Securities.  With respect to Capital Securities that are
not  held  in  global  form,  if  any,  the Property Trustee, subject to Section
4.2(c),  will irrevocably deposit with the Paying Agent, to the extent available
therefor,  funds sufficient to pay the applicable Redemption Price and will give
the  Paying  Agent  irrevocable instructions and authority to pay the Redemption
Price  to  the Holders of the Capital Securities upon surrender of their Capital
Securities  Certificates  or  Restricted Securities Certificates, as applicable.
Notwithstanding  the  foregoing,  Distributions  payable  on  or  prior  to  the
Redemption  Date for any Trust Securities called for redemption shall be payable
to  the  Holders  of  such  Trust  Securities  as  they appear on the Securities

                                       20
<PAGE>
Register  for  the Trust Securities on the relevant record dates for the related
Distribution  Dates.  If  notice  of  redemption shall have been given and funds
deposited  as  required,  then,  upon  the  date  of such deposit, all rights of
Holders holding Trust Securities so called for redemption will cease, except the
right  of  such  Holders  to  receive  the Redemption Price and any Distribution
payable  in  respect of the Trust Securities on or prior to the Redemption Date,
but  without  interest,  and such Trust Securities will cease to be Outstanding.
In  the  event that any date on which any applicable Redemption Price is payable
is  not  a Business Day, then payment of the applicable Redemption Price payable
on such date will be made on the next succeeding day that is a Business Day (and
without  any  interest  or  other  payment in respect of any such delay), except
that, if such Business Day falls in the next calendar year, such payment will be
made  on  the  immediately  preceding  Business Day, in each case, with the same
force  and  effect  as  if  made on such date.  In the event that payment of the
Redemption  Price  in  respect  of any Trust Securities called for redemption is
improperly withheld or refused and not paid either by the Issuer Trust or by the
Depositor pursuant to the Guarantee, Distributions on such Trust Securities will
continue  to  accumulate, as set forth in Section 4.1 and in accordance with the
continued  accrual  of  interest on the Junior Subordinated Debentures, from the
Redemption  Date  originally  established  by  the  Issuer  Trust for such Trust
Securities  to  the  date  such applicable Redemption Price is actually paid, in
which  case  the  actual  payment date will be the date fixed for redemption for
purposes  of  calculating  the  applicable  Redemption  Price.

          (e)     Subject  to  Section  4.3(a), if less than all the Outstanding
Trust  Securities  are  to  be redeemed on a Redemption Date, then the aggregate
Liquidation  Amount  of  such Trust Securities to be redeemed shall be allocated
pro  rata  to  the  Common  Securities  and  the Capital Securities based on the
relative  aggregate Liquidation Amounts of such classes.  The particular Capital
Securities  to  be redeemed shall be selected on a pro rata basis based on their
respective  Liquidation  Amounts  not  more than 60 days prior to the Redemption
Date  by  the  Property  Trustee  from  the  Outstanding  Capital Securities not
previously  called for redemption, or if the Capital Securities are then held in
the  form  of  a  Global  Preferred  Security  in  accordance with the customary
procedures  for the Clearing Agency.  The Property Trustee shall promptly notify
the  Securities  Registrar  in  writing  of  the aggregate Liquidation Amount of
Capital Securities to be redeemed and the particular Capital Securities selected
for  redemption.  For  all  purposes of this Trust Agreement, unless the context
otherwise  requires,  all  provisions  relating  to  the  redemption  of Capital
Securities  shall relate, in the case of any Capital Securities redeemed, to the
portion  of the aggregate Liquidation Amount of Capital Securities that has been
or  is  to  be  redeemed.

          SECTION  4.3.  SUBORDINATION  OF  COMMON  SECURITIES.

          (a)     Payment  of  Distributions  (including  Additional Amounts, if
applicable)  on,  the  Redemption  Price of, and the Liquidation Distribution in
respect  of, the Trust Securities, as applicable, shall be made, as set forth in
Section  4.2(e), pro rata among the Common Securities and the Capital Securities
based  on  the  Liquidation  Amount of such Trust Securities; provided, however,
that  if  on  any  Distribution  Date  or  Redemption  Date any Event of Default
resulting  from a Debenture Event of Default in Sections 5.1(1) or 5.1(2) of the

                                       21
<PAGE>
Indenture  shall have occurred and be continuing, no payment of any Distribution
(including  any  Additional  Amounts)  on,  Redemption  Price of, or Liquidation
Distribution in respect of, any Common Security, and no other payment on account
of  the redemption, liquidation or other acquisition of Common Securities, shall
be  made,  unless  payment  in  full  in  cash  of  all  accumulated  and unpaid
Distributions  (including  any  Additional  Amounts)  on all Outstanding Capital
Securities  for all Distribution periods terminating on or prior thereto, or, in
the  case of payment of the Redemption Price, the full amount of such Redemption
Price  on  all  Outstanding Capital Securities then called for redemption, or in
the  case  of  payment  of the Liquidation Distribution, the full amount of such
Liquidation  Distribution on all Outstanding Capital Securities, shall have been
made  or  provided  for,  and  all  funds  immediately available to the Property
Trustee  shall  first  be  applied  to  the  payment  in  full  in  cash  of all
Distributions (including any Additional Amounts) on, or the Redemption Price of,
or  Liquidation  Distribution  in  respect  of,  Capital Securities then due and
payable.  The  existence  of an Event of Default does not entitle the Holders of
Capital  Securities  to  accelerate  the  maturity  thereof.

          (b)     In  the  case  of  the  occurrence  of  any  Event  of Default
resulting  from  any  Debenture  Event  of  Default,  the  Holder  of the Common
Securities  shall  be deemed to have waived any right to act with respect to any
such  Event  of Default under this Trust Agreement until the effects of all such
Events of Default with respect to the Capital Securities have been cured, waived
or  otherwise  eliminated.  Until  all  such  Events of Default under this Trust
Agreement  with  respect to the Capital Securities have been so cured, waived or
otherwise  eliminated,  to  the  fullest extent permitted by applicable law, the
Property  Trustee  shall  act  solely  on  behalf  of the Holders of the Capital
Securities  and  not  on behalf of the Holder of the Common Securities, and only
the Holders of the Capital Securities will have the right to direct the Property
Trustee  to  act  on  their  behalf.

          SECTION  4.4.  PAYMENT  PROCEDURES.

          Payments  of  Distributions  (including  any  Additional  Amounts)  in
respect  of  the Capital Securities shall be made by check mailed to the address
of  the  Person  entitled thereto as such address shall appear on the Securities
Register  or,  if  the  Capital  Securities  are held by a Clearing Agency, such
Distributions  shall  be  made  to  the Clearing Agency in immediately available
funds,  which  will  credit the relevant accounts on the applicable Distribution
Dates.  Payments  in  respect  of  the  Common  Securities shall be made in such
manner  as  shall be mutually agreed between the Property Trustee and the Holder
of  the  Common  Securities.

          SECTION  4.5.  TAX  RETURNS  AND  REPORTS.

          The  Administrators  shall  prepare  (or cause to be prepared), at the
Depositor's expense, and file all United States federal, state and local tax and
information  returns  and  reports  required to be filed by or in respect of the
Issuer Trust.  In this regard, the Administrators shall (a) prepare and file (or
cause  to  be prepared and filed) all Internal Revenue Service forms required to
be filed in respect of the Issuer Trust in each taxable year of the Issuer Trust
and  (b)  prepare  and  furnish  (or cause to be prepared and furnished) to each
Holder  all Internal Revenue Service forms required to be provided by the Issuer
Trust.  The  Administrators shall provide the Depositor and the Property Trustee
with  a  copy  of  all  such  returns  and reports promptly after such filing or

                                       22
<PAGE>
furnishing.  The  Issuer  Trustees  shall  comply  with  United  States  Federal
withholding  and  backup  withholding  tax  laws  and  information  reporting
requirements with respect to any payments to Holders under the Trust Securities.

          On  or  before  December  15  of  each  year  during which any Capital
Securities are Outstanding, the Administrators shall furnish to the Paying Agent
such information as may be reasonably requested by the Property Trustee in order
that  the  Property  Trustee may prepare the information which it is required to
report for such year on Internal Revenue Service Forms 1096 and 1099 pursuant to
Section 6049 of the Code.  Such information shall include the amount of original
issue discount includable in income for each Outstanding Capital Security during
such  year,  if  any.

          SECTION  4.6.  PAYMENT  OF  TAXES,  DUTIES,  ETC. OF THE ISSUER TRUST.

          Upon  receipt  under  the Junior Subordinated Debentures of Additional
Sums,  the Property Trustee shall promptly pay any taxes, duties or governmental
charges  of  whatsoever  nature  (other  than  withholding taxes) imposed on the
Issuer  Trust  by  the  United  States  or any other taxing authority out of the
proceeds  of  the  Additional  Sums.

          SECTION  4.7.  PAYMENTS UNDER INDENTURE OR PURSUANT TO DIRECT ACTIONS.

          Any amount payable hereunder to any Holder of Capital Securities shall
be reduced by the amount of any corresponding payment such Holder (or Owner) has
directly  received  pursuant  to Section 5.8 of the Indenture or Section 5.13 of
this  Trust  Agreement.

          SECTION  4.8.  LIABILITY  OF  THE  HOLDER  OF  COMMON  SECURITIES.

          The  Holder  of  Common  Securities  shall be liable for the debts and
obligations  of  the  Issuer  Trust as set forth in Section 6.7 of the Indenture
regarding  allocation  of  expenses.

                                    ARTICLE V

                          TRUST SECURITIES CERTIFICATES

          SECTION  5.1.  INITIAL  OWNERSHIP.

          Upon  the  creation  of  the  Issuer Trust and the contribution by the
Depositor  pursuant  to  Section  2.3  and  until  the  issuance  of  the  Trust
Securities,  and  at  any time during which no Trust Securities are Outstanding,
the  Depositor  shall  be  the  sole  beneficial  owner  of  the  Issuer  Trust.

          SECTION  5.2.  THE  TRUST  SECURITIES  CERTIFICATES.

          (a)     The  Capital  Securities Certificates shall be issued in fully
registered  form.  The Trust Securities Certificates shall be executed on behalf
of  the  Issuer  Trust  by  manual  or  facsimile  signature  of  at  least  one
Administrator.  Trust  Securities  Certificates  bearing the manual or facsimile

                                       23
<PAGE>
signatures  of individuals who were, at the time when such signatures shall have
been affixed, authorized to sign on behalf of the Issuer Trust, shall be validly
issued  and  entitled  to  the benefits of this Trust Agreement, notwithstanding
that such individuals or any of them shall have ceased to be so authorized prior
to  the  delivery  of  such  Trust  Securities Certificates or did not hold such
offices  at  the  date  of  delivery  of  such Trust Securities Certificates.  A
transferee of a Trust Securities Certificate shall become a Holder, and shall be
entitled  to  the  rights  and subject to the obligations of a Holder hereunder,
upon  due registration of such Trust Securities Certificate in such transferee's
name  pursuant  to  Section  5.5.

          (b)     Upon  their original issuance, Capital Securities Certificates
shall  be  issued  in  the  form  of  one  or  more  Global  Capital  Securities
Certificates  which initially shall bear a Restricted Capital Securities Legend,
registered in the name of Cede as the Depositary's nominee and deposited with or
on  behalf  of Depositary for credit by Depositary to the respective accounts of
the  Owners  thereof (or such other accounts as they may direct).  Except as set
forth  herein,  record  ownership  of  the  Global  Capital  Securities  may  be
transferred,  in whole or in part, only to another nominee of Depositary or to a
successor  of  the  Depository  or  its  nominee.

          (c)     A single Common Securities Certificate representing the Common
Securities  shall  be issued to the Depositor in the form of a definitive Common
Securities  Certificate.

          SECTION 5.3.  EXECUTION AND DELIVERY OF TRUST SECURITIES CERTIFICATES.

          At  the  Closing,  an  Administrator  shall  execute, on behalf of the
Trust,  Trust  Securities  Certificates,  in  an aggregate Liquidation Amount as
provided in Sections 2.4 and 2.5, and deliver such Trust Securities Certificates
to  the  Property  Trustee for authentication.  Upon such delivery, the Property
Trustee  shall  authenticate such Trust Securities Certificates and deliver such
Trust  Securities  Certificates upon the written order of the Trust, executed by
an  Administrator thereof, without further corporate action by the Depositor, in
authorized  denominations.

          SECTION  5.4.  GLOBAL  CAPITAL  SECURITIES.

          (a)     The  Global Capital Security issued under this Trust Agreement
shall  be  registered  in the name of Cede & Co., as the nominee of the Clearing
Agency  and  delivered  to  such  custodian  therefor,  and  such Global Capital
Security  shall  constitute  a  single Capital Security for all purposes of this
Trust  Agreement,  and  it  shall initially bear a Restricted Capital Securities
Legend.

          (b)     Notwithstanding  any  other provision in this Trust Agreement,
the  Global  Capital  Security  may  not  be  exchanged  in whole or in part for
registered Capital Securities, and no transfer of the Global Capital Security in
whole  or  in  part  may be registered, in the name of any Person other than the
Clearing  Agency  for such Global Capital Security, Cede & Co., or other nominee
thereof unless:  (i) such Clearing Agency advises the Depositor and the Property
Trustee  in  writing  that  such Clearing Agency is no longer willing or able to
properly  discharge  its responsibilities as the Clearing Agency with respect to

                                       24
<PAGE>
such  Global Capital Security, and the Depositor is unable to locate a qualified
successor  within  90  days,  (ii)  at  any  time  the Depositary ceases to be a
Clearing  Agency  registered as such under the Exchange Act, or (iii) the Issuer
Trust  at  its  option  advises  the  Depositary  in  writing  that it elects to
terminate  the  book-entry  system  through  the  Clearing  Agency.

          (c)     If  the Global Capital Security is to be exchanged or canceled
in  whole, it shall be surrendered by or on behalf of the Clearing Agency or its
nominee  to the Securities Registrar for exchange or cancellation as provided in
this  Article  V.  If the Global Capital Security is to be exchanged or canceled
in  part,  or if another Capital Security is to be exchanged in whole or in part
for  a beneficial interest in the Global Capital Security, then either: (i) such
Global  Capital Security shall be so surrendered for exchange or cancellation as
provided  in  this  Article  V,  or (ii) the Liquidation Amount thereof shall be
reduced  or  increased  by  an  amount  equal  to  the  portion thereof to be so
exchanged  or  canceled or equal to the Liquidation Amount of such other Capital
Security  to  be so exchanged for a beneficial interest therein, as the case may
be,  by  means  of an appropriate adjustment made on the records of the Security
Registrar,  whereupon  the  Property  Trustee, in accordance with the Applicable
Procedures,  shall instruct the Clearing Agency or its authorized representative
to  make  a corresponding adjustment to its records.  Upon any such surrender or
adjustment of the Global Capital Security by the Clearing Agency, accompanied by
registration instructions, the Property Trustee shall, subject to Section 5.4(b)
and  as  otherwise  provided  in  this  Article  V, authenticate and deliver any
Capital  Securities  or  Restricted  Capital  Securities,  as  applicable and as
instructed  by  the Administrators, issuable in exchange for such Global Capital
Security  (or  any  portion  thereof) in accordance with the instructions of the
Clearing  Agency.  The  Property  Trustee  shall  not be liable for any delay in
delivery  of  such instructions and may conclusively rely on, and shall be fully
protected  in  relying  on,  such  instructions.

          (d)     Every  Capital  Security  or  Restricted  Capital  Securities
authenticated  and  delivered  upon registration of, transfer of, or in exchange
for  or  in lieu of, the Global Capital Security or any portion thereof, whether
pursuant  to  this  Article V or Article IV or otherwise, shall be authenticated
and  delivered  in  the form of, and shall be, a Global Capital Security, unless
such  Global  Capital  Security is registered in the name of a Person other than
the  Clearing  Agency  for  such  Global  Capital Security or a nominee thereof.

          (e)     The Clearing Agency or its nominee, as the registered owner of
the  Global  Capital  Security,  shall  be  considered the Holder of the Capital
Securities  or  the  Restricted  Capital  Securities  represented  by the Global
Capital  Security  for  all  purposes under this Trust Agreement and the Capital
Securities,  and  owners  of beneficial interests in the Global Capital Security
shall  hold  such interests pursuant to the Applicable Procedures and, except as
otherwise  provided  herein, shall not be entitled to have any of the individual
Capital  Securities  or  the  Restricted  Capital  Securities represented by the
Global  Capital  Security  registered  in  their names, shall not receive nor be
entitled  to  receive  physical  delivery  of any such Capital Securities or the
Restricted Capital Securities in definitive form and shall not be considered the
Holders  thereof  under  this  Trust  Agreement.  Accordingly,  any such owner's
beneficial  interest  in the Global Capital Security shall be shown only on, and
the transfer of such interest shall be effected only through, records maintained

                                       25
<PAGE>
by  the  Clearing  Agency  or its nominee.  Neither the Property Trustee nor the
Securities  Registrar  shall  have  any  liability  in  respect of any transfers
effected  by  the  Clearing  Agency.

          (f)     The  rights  of  owners  of beneficial interests in the Global
Capital  Security  shall be exercised only through the Clearing Agency and shall
be  limited  to  those established by law and agreements between such owners and
the  Clearing  Agency.

          SECTION 5.5.  REGISTRATION OF TRANSFER AND EXCHANGE GENERALLY; CERTAIN
TRANSFERS  AND  EXCHANGES;  CAPITAL  SECURITIES  CERTIFICATES;  SECURITIES  ACT
LEGENDS.

          (a)     The  Property  Trustee  shall  keep or cause to be kept at its
Corporate  Trust  Office a register or registers (the "Securities Register") for
                                                       -------------------
the purpose of registering Capital Securities Certificates and Common Securities
Certificates  and transfers and exchanges of Capital Securities Certificates and
Common  Securities  Certificates  and acting as the registrar and transfer agent
with  respect  to the Capital Securities and Common Securities Certificates (the
"Securities  Registrar"),  subject  to  such  reasonable  regulations  as it may
 ---------------------
prescribe,  and  shall  provide  for  the  registration  of  Capital  Securities
Certificates  and Common Securities Certificates (subject to Section 5.11 in the
case  of  Common  Securities  Certificates)  in  the  Securities  Register.  The
Property  Trustee  is  hereby  appointed  Securities  Registrar.  The Securities
Registrar  shall  maintain stop transfer instructions in the Securities Register
and  as  it  otherwise  deems appropriate to restrict the transfer of Restricted
Capital  Securities  consistent  with  the  terms  of  this  Agreement.

          Upon  surrender for registration of transfer of any Capital Securities
Certificate  at  the  offices or agencies of the Property Trustee designated for
that  purpose,  the Administrators shall execute, and the Property Trustee shall
authenticate  and  deliver,  in  the  name  of  the  designated  transferee  or
transferees,  one or more new Capital Securities Certificates of the same series
of any authorized denominations of like tenor and aggregate principal amount and
bearing  such  restrictive  legends (including the Restricted Capital Securities
Legend)  as  may  be  required  by  this  Trust  Agreement.

          At  the  option  of the Holder, Capital Securities Certificates may be
exchanged  for  other  Capital  Securities  Certificates  of  any  authorized
denominations,  of  like tenor and aggregate Liquidation Amount and bearing such
restrictive  legends (including the Restricted Capital Securities Legend) as may
be  required  by  this Trust Agreement, upon surrender of the Capital Securities
Certificates  to  be exchanged at such office or agency of the Property Trustee.
Whenever  any  securities  are  so  surrendered for exchange, the Administrators
shall  execute  and  the  Property  Trustee  shall  authenticate and deliver the
Capital  Securities Certificates that the Holder making the exchange is entitled
to  receive.

          All Capital Securities issued upon any transfer or exchange of Capital
Securities  shall  be  the valid obligations of the Issuer Trust, evidencing the
same  obligations, and entitled to the same benefits under this Trust Agreement,
as  the  Capital  Securities  surrendered  upon  such  transfer  or  exchange.

                                       26
<PAGE>
          Every  Capital  Securities  Certificate  presented  or surrendered for
transfer  or  exchange  shall  (if  so required by the Property Trustee) be duly
endorsed,  or  be  accompanied  by  a  written  instrument  of  transfer in form
satisfactory to the Property Trustee and the Securities Registrar, duly executed
by  the  Holder  thereof  or  such Holder's attorney duly authorized in writing.

          No  service  charge  shall  be  made  to  a Holder for any transfer or
exchange  of  Capital  Securities  Certificates,  but  the  Property Trustee may
require  payment  of  a  sum  sufficient  to cover any tax or other governmental
charge  that  may  be  imposed  in  connection  with any transfer or exchange of
Capital  Securities  Certificates.

          Neither  the  Issuer Trust nor the Property Trustee shall be required,
pursuant to the provisions of this Section:  (i) to issue, register the transfer
of  or exchange any Capital Securities Certificates during a period beginning at
the  opening  of  15 Business Days before the day of selection for redemption of
Capital Securities pursuant to Article IV and ending at the close of business on
the day of mailing of the notice of redemption, or (ii) to register the transfer
of  or  exchange  any Capital Security so selected for redemption in whole or in
part,  except,  in the case of any such Capital Security to be redeemed in part,
any  portion  thereof  not  to  be  redeemed.

          (b)     Certain  Transfers  and  Exchanges.  Notwithstanding any other
                  ----------------------------------
provision of this Trust Agreement, transfers and exchanges of Capital Securities
and  beneficial  interests  in  a  Global Capital Security shall be made only in
accordance  with  this  Section  5.5(b).

               (i)     Non-Global  Restricted Capital Security to Global Capital
                       ---------------------------------------------------------
          Security.  If  the Holder of a Restricted Capital Security (other than
          --------
          the Global Capital Security) wishes at any time to transfer all or any
          portion of such Trust Security to a Person who wishes to take delivery
          thereof  in  the  form  of a beneficial interest in the Global Capital
          Security,  such  transfer  may be effected only in accordance with the
          provisions  of  this  clause  (b)(i)  and  subject  to  the Applicable
          Procedures.  Upon  receipt  by  the  Security  Registrar  of  (A) such
          Restricted  Capital  Security  as  provided  in  Section  5.5(a)  and
          instructions  satisfactory  to the Security Registrar directing that a
          beneficial  interest  in  the  Global  Capital Security in a specified
          Liquidation  Amount  not  greater  than the Liquidation Amount of such
          Restricted  Capital  Security  to  be credited to a specified Clearing
          Agency  Participant's  account,  and  (B)  a  Restricted  Securities
          Certificate duly executed for transfer by such Holder or such Holder's
          attorney duly authorized in writing, then the Security Registrar shall
          cancel  such  Restricted  Capital Security (and issue a new Restricted
          Capital  Security  in respect of any untransferred portion thereof) as
          provided  in  Section  5.5(a)  and  increase the aggregate Liquidation
          Amount  of  the  Global  Capital Security by the specified Liquidation
          Amount  as  provided  in  Section  5.4(c).

               (ii)     Non-Global  Capital  Security  to  Non-Global  Capital
                        ------------------------------------------------------
          Security.  A  Trust Security that is not a Global Capital Security may
          be transferred, in whole or in part, to a Person who takes delivery in
          the  form  of  another  Trust  Security  that  is not a Global Capital
          Security  as  provided  in  Section 5.5(a), provided that if the Trust

                                       27
<PAGE>
          Security to be transferred in whole or in part is a Restricted Capital
          Security,  the  Securities  Registrar shall have received a Restricted
          Securities  Certificate duly executed by the transferor Holder or such
          Holder's  attorney  duly  authorized  in  writing  and  the Securities
          Registrar  shall  only  be  required  to register the transfer of such
          Restricted  Securities  Certificate  upon direction from the Depositor
          that  such  transfer  is  permissible.

               (iii)     Exchanges  Between  Global  Capital  Security  and
                         --------------------------------------------------
          Non-Global Trust Security. A beneficial interest in the Global Capital
          -------------------------
          Security  may  be  exchanged for a Trust Security that is not a Global
          Capital  Security  only  as  provided  in  Section  5.4.

               (iv)     Certain  Initial  Transfers  of  Non-Global  Trust
                        --------------------------------------------------
          Securities.  In  the  case  of Trust Securities initially issued other
          -----------
          than  in  global  form,  an initial transfer or exchange of such Trust
          Securities  that  does  not involve any change in beneficial ownership
          may be made to an institutional accredited investor or investors as if
          such  transfer  or  exchange were not an initial transfer or exchange;
          provided  that  written  certification  shall  be  provided  by  the
          transferee  and  transferor of such Trust Securities to the Securities
          Registrar  that such transfer or exchange does not involve a change in
          beneficial  ownership.

               (v)     Limitations  Relating  to  Principal  Amount.
                       --------------------------------------------
          Notwithstanding any other provision of this Trust Agreement and unless
          otherwise  specified  as  permitted  by  this  Trust  Agreement, Trust
          Securities or portions thereof may be transferred or exchanged only in
          principal  amounts of not less than $50,000. Any transfer, exchange or
          other disposition of Trust Securities in contravention of this Section
          5.5(b)(v)  shall  be  deemed  to  be  void  and  of  no  legal  effect
          whatsoever,  any  such transferee shall be deemed not to be the Holder
          or  owner  of any beneficial interest in such Trust Securities for any
          purpose,  including but not limited to the receipt of interest payable
          on  such  Trust Securities, such transferee shall be deemed to have no
          interest  whatsoever  in  such  Trust  Securities,  and the Securities
          Registrar  shall  not  record  any  such  transfer  in  the Securities
          Register.

          (c)     Restricted  Securities Legend.  Except as set forth below, all
                  -----------------------------
Capital  Securities  shall  bear  a  Restricted  Capital  Securities  Legend:

               (i)     subject  to the following Clauses of this Section 5.5(c),
          a  Capital  Security  or  any  portion thereof that is exchanged, upon
          transfer  or  otherwise,  for a Global Capital Security or any portion
          thereof  shall  bear  the  Restricted  Capital Securities Legend while
          represented  thereby;

               (ii)     subject to the following Clauses of this Section 5.5(c),
          a  new  Capital Security which is not a Global Capital Security and is
          issued  in  exchange  for another Capital Security (including a Global
          Capital  Security) or any portion thereof, upon transfer or otherwise,
          shall,  if  such  new Capital Security is required to be issued in the

                                       28
<PAGE>
          form  of  a  Restricted  Capital  Security,  bear a Restricted Capital
          Securities  Legend;

               (iii)     a  new  Capital  Security  (other than a Global Capital
          Security)  that  does  not bear a Restricted Capital Securities Legend
          may  be  issued  in  exchange  for  or in lieu of a Restricted Capital
          Security  or  any  portion thereof that bears such a legend if, in the
          Depositor's  judgment,  placing  such  a  legend upon such new Capital
          Security  is  not necessary to ensure compliance with the requirements
          of the Securities Act and is permissible under Commission Rule 144(k),
          and  the  Property  Trustee,  at  the  written  direction  of  the
          Administrator  of  the  Issuer  Trust  in  the  form  of  an Officers'
          Certificate,  shall authenticate and deliver such new Capital Security
          as  provided  in  this  Article  V;

               (iv)     notwithstanding the foregoing provisions of this Section
          5.5(c),  a  Successor Capital Security of a Capital Security that does
          not  bear  a  Restricted Capital Securities Legend shall not bear such
          form  of  legend, unless the Depositor has reasonable cause to believe
          that such Successor Capital Security is a "restricted security" within
          the  meaning  of  Rule 144 under the Securities Act, in which case the
          Property Trustee, at the written direction of any Administrator of the
          Issuer  Trust  in  the  form  of  an  Officers'  Certificate,  shall
          authenticate  and  deliver a new Capital Security bearing a Restricted
          Capital  Securities  Legend  in  exchange  for  such Successor Capital
          Security  as  provided  in  this  Article  V;  and

               (v)     Junior Subordinated Debentures distributed to a holder of
          Capital  Securities  upon dissolution of the Issuer Trust shall bear a
          Restricted  Capital  Securities  Legend,  if the Capital Securities so
          held  bear  a  similar  legend, absent instructions from the Depositor
          that  such  legend  can be removed consistent with the requirements of
          the  Securities  Act,  and  Commission  Rule  144  thereunder.

          SECTION  5.6.  MUTILATED,  DESTROYED,  LOST OR STOLEN TRUST SECURITIES
CERTIFICATES.

          If (a) any mutilated Trust Securities Certificate shall be surrendered
to  the  Securities  Registrar,  or  if  the  Securities Registrar shall receive
evidence  to  its  satisfaction  of  the destruction, loss or theft of any Trust
Securities  Certificate  and  (b)  there  shall  be  delivered to the Securities
Registrar and the Administrators such security, indemnity and/or other assurance
as  may be required by them, in their discretion, to save each of them harmless,
then  in the absence of notice that such Trust Securities Certificate shall have
been  acquired by a bona fide purchaser, the Administrators, or any one of them,
on behalf of the Issuer Trust shall execute and make available for delivery, and
the  Property Trustee shall authenticate, in exchange for or in lieu of any such
mutilated,  destroyed,  lost or stolen Trust Securities Certificate, a new Trust
Securities  Certificate  of  like  class, tenor and denomination.  In connection
with  the  issuance  of any new Trust Securities Certificate under this Section,
the  Administrators or the Securities Registrar may require the payment of a sum
sufficient  to cover any tax or other governmental charge that may be imposed in
connection  therewith.  Any  duplicate  Trust  Securities  Certificate  issued
pursuant  to  this  Section  5.6  shall  constitute  conclusive  evidence  of an

                                       29
<PAGE>
undivided beneficial interest in the assets of the Issuer Trust corresponding to
that evidenced by the lost, stolen or destroyed Trust Securities Certificate, as
if  originally  issued,  whether  or  not  the  lost,  stolen or destroyed Trust
Securities  Certificate  shall  be  found  at  any  time.

          SECTION  5.7.  PERSONS  DEEMED  HOLDERS.

          The  Issuer  Trustees  and  the  Securities  Registrar shall treat the
Person  in  whose name any Trust Securities are issued as the sole owner of such
Trust  Securities  for  the purpose of receiving Distributions and for all other
purposes  whatsoever, and none of the Issuer Trustees, the Administrators or the
Securities  Registrar  shall  be  bound  by  any  notice  to  the  contrary.

          SECTION  5.8.  ACCESS  TO  LIST  OF  HOLDERS'  NAMES  AND  ADDRESSES.

          Each  Holder and each Owner shall be deemed to have agreed not to hold
the Depositor, the Property Trustee, or the Administrators accountable by reason
of  the  disclosure of its name and address, regardless of the source from which
such  information  was  derived.

          SECTION  5.9.  MAINTENANCE  OF  OFFICE  OR  AGENCY.

          The  Property  Trustee  shall  designate,  with  the  consent  of  the
Administrators,  which  consent shall not be unreasonably withheld, an office or
offices  or  agency  or  agencies  where  Capital Securities Certificates may be
surrendered  for  registration  of  transfer  or  exchange and where notices and
demands  to  or  upon  the  Issuer  Trustees  in respect of the Trust Securities
Certificates  may  be  served.  The  Property  Trustee  initially designates its
Corporate  Trust  Office  as  its corporate trust office for such purposes.  The
Property  Trustee  shall  give  prompt  written  notice  to  the  Depositor, the
Administrators  and  to  the  Holders  of  any  change  in  the  location of the
Securities  Register  or  any  such  office  or  agency.

          SECTION  5.10.  APPOINTMENT  OF  PAYING  AGENT.

          The  Paying Agent shall make Distributions to Holders from the Payment
Account  and  shall  report  the  amounts  of such Distributions to the Property
Trustee and the Administrators.  Any Paying Agent shall have the revocable power
to  withdraw funds from the Payment Account solely for the purpose of making the
Distributions referred to above.  The Property Trustee may revoke such power and
remove  any  Paying  Agent  in  its  sole  discretion.  The  Paying  Agent shall
initially  be  the Property Trustee.  Any Person acting as Paying Agent shall be
permitted  to  resign  as  Paying  Agent  upon  30  days'  written notice to the
Administrators and the Property Trustee.  In the event that the Property Trustee
shall  no longer be the Paying Agent or a successor Paying Agent shall resign or
its  authority to act be revoked, the Property Trustee shall appoint a successor
(which  shall  be  a bank or trust company) that is reasonably acceptable to the
Administrators  to  act  as  Paying  Agent.  Such  successor Paying Agent or any
additional  Paying  Agent  appointed  by  the  Administrators  shall execute and
deliver  to  the  Issuer  Trustees  an instrument in which such successor Paying
Agent  or  additional  Paying Agent shall agree with the Issuer Trustees that as
Paying  Agent,  such successor Paying Agent or additional Paying Agent will hold
all sums, if any, held by it for payment to the Holders in trust for the benefit
of  the  Holders entitled thereto until such sums shall be paid to such Holders.

                                       30
<PAGE>
The  Paying  Agent  shall return all unclaimed funds to the Property Trustee and
upon  removal of a Paying Agent such Paying Agent shall also return all funds in
its possession to the Property Trustee.  The provisions of Sections 8.1, 8.3 and
8.6 herein shall apply to the Bank also in its role as Paying Agent, for so long
as  the  Bank  shall  act  as Paying Agent and, to the extent applicable, to any
other  paying  agent appointed hereunder.  Any reference in this Trust Agreement
to  the  Paying  Agent  shall include any co-paying agent chosen by the Property
Trustee,  unless  the  context  requires  otherwise.

          SECTION  5.11.  OWNERSHIP  OF  COMMON  SECURITIES  BY  DEPOSITOR.

          At  Closing,  the  Depositor  shall  acquire  and  retain  beneficial
and  record  ownership  of  the Common Securities. Neither the Depositor nor any
successor  Holder of the Common Securities may transfer less than all the Common
Securities,  and  the  Depositor  or  any such successor Holder may transfer the
Common  Securities  only (i) in connection with a consolidation or merger of the
Depositor  into  another  Person  or  any  conveyance,  transfer or lease by the
Depositor  of  its  properties  and  assets  substantially as an entirety to any
Person, pursuant to Section 8.1 of the Indenture, or (ii) to an Affiliate of the
Depositor  in  compliance  with applicable law (including the Securities Act and
applicable  state securities and blue sky laws); provided that any such transfer
shall  be  subject  to the condition that the transferor shall have obtained (A)
either  a  ruling  from  the  Internal Revenue Service or an unqualified written
Opinion of Counsel by a firm experienced in such matters addressed to the Issuer
Trust and delivered to the Issuer Trustees to the effect that such transfer will
not  (1) cause the Issuer Trust to be treated as issuing a class of interests in
the Issuer Trust differing from the class of interests represented by the Common
Securities  originally  issued  to the Depositor, (2) result in the Issuer Trust
acquiring  or  disposing of, or being deemed to have acquired or disposed of, an
asset,  or  (3)  result  in  or cause the Issuer Trust to be treated as anything
other than a grantor trust for United States Federal income tax purposes and (B)
an  unqualified written Opinion of Counsel by a firm experienced in such matters
addressed to the Issuer Trust and delivered to the Issuer Trustees to the effect
that such transfer will not cause the Issuer Trust to be an "investment company"
or controlled by an "investment company" that is required to be registered under
the  Investment  Company  Act.  To  the  fullest  extent  permitted  by law, any
attempted  transfer  of  the  Common  Securities, other than as set forth in the
immediately  preceding  sentence,  shall be void. The Administrators shall cause
each  Common  Securities Certificate issued to the Depositor to contain a legend
stating  "THIS  CERTIFICATE  IS  NOT  TRANSFERABLE  EXCEPT  IN  COMPLIANCE  WITH
APPLICABLE  LAW  AND  SECTION  5.11  OF  THE  TRUST  AGREEMENT."

          SECTION  5.12.  NOTICES  TO  CLEARING  AGENCY.

          To  the  extent that a notice or other communication to the Holders is
required  under  this  Trust  Agreement,  with  respect  to  Capital  Securities
represented  by  Global  Capital Securities Certificates, the Administrators and
the  Issuer  Trustees  shall  give all such notices and communications specified
herein to be given to the Clearing Agency, and shall have no obligations to give
such  notice  or  other  communication  to  the  Owners.

          SECTION  5.13.  RIGHTS  OF  HOLDERS.

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          (a)     The legal title to the Trust Property is vested exclusively in
the  Property  Trustee (in its capacity as such) in accordance with Section 2.9,
and  the  Holders  shall  not  have  any  right  or title therein other than the
undivided  beneficial  ownership  interest  in  the  assets  of the Issuer Trust
conferred by their Trust Securities and they shall have no right to call for any
partition or division of property, profits or rights of the Issuer Trust, except
as described below.  The Trust Securities shall be personal property giving only
the  rights  specifically  set  forth  therein and in this Trust Agreement.  The
Trust Securities shall have no preemptive or similar rights, and when issued and
delivered to Holders against payment of the purchase price therefor, as provided
herein,  will  be  fully  paid and nonassessable by the Issuer Trust.  Except as
otherwise provided in Section 4.8, the Holders of the Trust Securities, in their
capacities  as  such,  shall  be  entitled  to  the  same limitation of personal
liability  extended to stockholders of private corporations for profit organized
under  the  General  Corporation  Laws  of  the  State  of  Delaware.

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

          At  any  time after such a declaration of acceleration with respect to
the Junior Subordinated Debentures has been made and before a judgment or decree
for  payment  of  the  money  due  has been obtained by the Indenture Trustee as
provided  in  the  Indenture, the Holders of a Majority in Liquidation Amount of
the Capital Securities, by written notice to the Property Trustee, the Depositor
and  the  Indenture  Trustee,  may  rescind  and  annul such declaration and its
consequences  if:

               (i)     the  Depositor  has  paid or deposited with the Indenture
     Trustee  a  sum  sufficient  to  pay

                    (A)     all  overdue  installments of interest on all of the
          Junior  Subordinated  Debentures,

                    (B)     any accrued Additional Interest on all of the Junior
          Subordinated  Debentures,

                    (C)     the  principal  of  (and  premium,  if  any, on) any
          Junior Subordinated Debentures which have become due otherwise than by
          such  declaration  of  acceleration  and  interest  and any Additional
          Interest  thereon  at  the  rate  borne  by  the  Junior  Subordinated
          Debentures,  and

                    (D)     all  sums  paid or advanced by the Indenture Trustee
          under  the  Indenture  and  the  reasonable  compensation,  expenses,

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<PAGE>
          disbursements  and  advances of the Indenture Trustee and the Property
          Trustee,  their  agents  and  counsel;  and

               (ii)     all  Events  of  Default  with  respect  to  the  Junior
     Subordinated Debentures, other than the non-payment of the principal of the
     Junior  Subordinated  Debentures  which  has  become  due  solely  by  such
     acceleration,  have been cured or waived as provided in Section 5.13 of the
     Indenture.

          If  the Property Trustee fails to annul any such declaration and waive
such  default,  the  Holders of at least a Majority in Liquidation Amount of the
Capital  Securities  shall  also  have  the  right  to  rescind  and  annul such
declaration  and  its  consequences  by  written  notice  to  the Depositor, the
Property  Trustee  and the Indenture Trustee, subject to the satisfaction of the
conditions  set  forth  in  clauses  (i)  and  (ii)  of  this  Section  5.13(b).

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

          Upon  receipt by the Property Trustee of written notice declaring such
an  acceleration, or rescission and annulment thereof, by Holders of the Capital
Securities, all or part of which is represented by the Global Capital Securities
Certificate,  a  record  date  shall  be  established for determining Holders of
Outstanding  Capital  Securities  entitled  to join in such notice, which record
date  shall be at the close of business on the day the Property Trustee receives
such notice.  The Holders on such record date, or their duly designated proxies,
and  only such Persons, shall be entitled to join in such notice, whether or not
such  Holders  remain Holders after such record date; provided that, unless such
declaration  of  acceleration,  or rescission and annulment, as the case may be,
shall  have become effective by virtue of the requisite percentage having joined
in  such  notice  prior to the day which is 90 days after such record date, such
notice  of declaration of acceleration, or rescission and annulment, as the case
may be, shall automatically and without further action by any Holder be canceled
and  of no further effect.  Nothing in this paragraph shall prevent a Holder, or
a  proxy of a Holder, from giving, after expiration of such 90-day period, a new
written  notice  of  declaration  of  acceleration,  or rescission and annulment
thereof,  as  the  case  may be, that is identical to a written notice which has
been  canceled pursuant to the proviso to the preceding sentence, in which event
a  new  record  date  shall  be  established  pursuant to the provisions of this
Section  5.13(b).

          (c)     For  so  long as any Capital Securities remain Outstanding, to
the  fullest  extent  permitted  by  law  and subject to the terms of this Trust
Agreement  and  the  Indenture,  upon  a Debenture Event of Default specified in
Section  5.1(1)  or  5.1(2)  of  the Indenture, any Holder of Capital Securities
shall  have  the right to institute a proceeding directly against the Depositor,
pursuant  to  Section  5.8  of the Indenture, for enforcement of payment to such

                                       33
<PAGE>
Holder  of the principal amount of or interest on Junior Subordinated Debentures
having  an  aggregate principal amount equal to the aggregate Liquidation Amount
of  the  Capital  Securities  of such Holder (a "Direct Action").  Except as set
                                                 -------------
forth  in  Sections 5.13(b) and 5.13(c), the Holders of Capital Securities shall
have  no right to exercise directly any right or remedy available to the holders
of,  or  in  respect  of,  the  Junior  Subordinated  Debentures.

                                   ARTICLE VI

                        ACTS OF HOLDERS; MEETINGS; VOTING

          SECTION  6.1.  LIMITATIONS  ON  HOLDERS'  VOTING  RIGHTS.

          (a)     Except  as  provided  in  this  Trust  Agreement  and  in  the
Indenture  and  as  otherwise  required  by law, no Holder of Capital Securities
shall  have  any  right  to  vote  or  in  any  manner  otherwise  control  the
administration,  operation and management of the Issuer Trust or the obligations
of  the  parties hereto, nor shall anything herein set forth or contained in the
terms  of the Trust Securities Certificates be construed so as to constitute the
Holders  from  time  to  time  as  members  of  an  association.

          (b)     So  long as any Junior Subordinated Debentures are held by the
Property  Trustee  on behalf of the Issuer Trust, the Property Trustee shall not
(i)  direct  the  time,  method  and  place of conducting any proceeding for any
remedy  available  to  the  Indenture  Trustee,  or  execute  any trust or power
conferred  on  the  Property  Trustee  with  respect to such Junior Subordinated
Debentures, (ii) waive any past default that may be waived under Section 5.13 of
the  Indenture,  (iii) exercise any right to rescind or annul a declaration that
the principal of all the Junior Subordinated Debentures shall be due and payable
or  (iv)  consent to any amendment, modification or termination of the Indenture
or  the  Junior  Subordinated  Debentures, where such consent shall be required,
without, in each case, obtaining the prior approval of the Holders of at least a
Majority  in  Liquidation  Amount  of the Capital Securities, provided, however,
that  where  a  consent  under  the  Indenture would require the consent of each
holder of Junior Subordinated Debentures affected thereby, no such consent shall
be  given  by  the  Property  Trustee  without the prior written consent of each
Holder  of Capital Securities.  The Property Trustee shall not revoke any action
previously  authorized  or  approved  by  a  vote  of  the  Holders  of  Capital
Securities,  except  by  a subsequent vote of the Holders of Capital Securities.
The  Property  Trustee shall notify all Holders of the Capital Securities of any
notice  of  default received with respect to the Junior Subordinated Debentures.
In  addition  to obtaining the foregoing approvals of the Holders of the Capital
Securities,  prior  to taking any of the foregoing actions, the Property Trustee
shall, at the expense of the Depositor, obtain an Opinion of Counsel experienced
in  such  matters to the effect that such action will not cause the Issuer Trust
to be taxable other than as a grantor trust for United States Federal income tax
purposes.

          (c)     If any proposed amendment to the Trust Agreement provides for,
or  the  Issuer  Trust  otherwise  proposes to effect, (i) any action that would
adversely  affect  in any material respect the interests, powers, preferences or
special  rights  of  the  Capital Securities, whether by way of amendment to the
Trust Agreement or otherwise, or (ii) the dissolution, winding-up or termination

                                       34
<PAGE>
of  the  Issuer Trust, other than pursuant to the terms of this Trust Agreement,
then  the Holders of Outstanding Trust Securities as a class will be entitled to
vote  on  such amendment or proposal and such amendment or proposal shall not be
effective  except  with  the  approval  of the Holders of at least a Majority in
Liquidation  Amount  of  the  Capital  Securities.  Notwithstanding  any  other
provision  of  this Trust Agreement, no amendment to this Trust Agreement may be
made  if,  as  a result of such amendment, it would cause the Issuer Trust to be
taxable  other  than  as  a  grantor  trust for United States Federal income tax
purposes.

          SECTION  6.2.  NOTICE  OF  MEETINGS.

          Notice  of  all  meetings  of the Holders, stating the time, place and
purpose  of  the  meeting,  shall  be  given by the Property Trustee pursuant to
Section  10.8  to  each Holder of record, at his registered address, at least 15
days  and  not  more  than 90 days before the meeting.  At any such meeting, any
business  properly before the meeting may be so considered whether or not stated
in  the  notice  of the meeting.  Any adjourned meeting may be held as adjourned
without  further  notice.

          SECTION  6.3.  MEETINGS  OF  HOLDERS.

          No  annual  meeting  of  Holders is required to be held.  The Property
Trustee, however, shall call a meeting of Holders to vote on any matter upon the
written  request  of  the  Holders of record of 25% of the aggregate Liquidation
Amount  of the Capital Securities and the Administrators or the Property Trustee
may,  at  any  time  in  their  discretion, call a meeting of Holders of Capital
Securities  to  vote  on  any  matters as to which Holders are entitled to vote.

          Holders  of  at  least a Majority in Liquidation Amount of the Capital
Securities, present in person or represented by proxy, shall constitute a quorum
at  any  meeting  of  Holders  of  the  Capital  Securities.

          If  a  quorum  is  present  at  a  meeting, an affirmative vote by the
Holders  of  record  present,  in person or by proxy, holding Capital Securities
representing at least a Majority in Liquidation Amount of the Capital Securities
held by the Holders present, either in person or by proxy, at such meeting shall
constitute  the  action  of the Holders of Capital Securities, unless this Trust
Agreement  requires  a  greater  number  of  affirmative  votes.

          SECTION  6.4.  VOTING  RIGHTS.

          Holders  shall  be  entitled  to  one  vote  for  each  $50,000.00  of
Liquidation  Amount represented by their Outstanding Trust Securities in respect
of  any  matter  as  to  which  such  Holders  are  entitled  to  vote.

          SECTION  6.5.  PROXIES,  ETC.

          At any meeting of Holders, any Holder entitled to vote at such meeting
may  vote  by proxy, provided that no proxy shall be voted at any meeting unless
it  shall have been placed on file with the Property Trustee, or with such other
officer  or  agent  of  the Issuer Trust as the Property Trustee may direct, for

                                       35
<PAGE>
verification prior to the time at which such vote shall be taken.  Pursuant to a
resolution  of the Property Trustee, proxies may be solicited in the name of the
Property  Trustee or one or more officers of the Property Trustee.  Only Holders
of  record shall be entitled to vote.  When Trust Securities are held jointly by
several  persons,  any one of them may vote at any meeting in person or by proxy
in  respect  of  such  Trust  Securities,  but if more than one of them shall be
present  at  such  meeting in person or by proxy, and such joint owners or their
proxies  so  present  disagree as to any vote to be cast, such vote shall not be
received in respect of such Trust Securities.  A proxy purporting to be executed
by  or on behalf of a Holder shall be deemed valid unless challenged at or prior
to  its  exercise,  and  the  burden  of  proving  invalidity  shall rest on the
challenger.  No  proxy  shall  be  valid more than three years after its date of
execution.

          SECTION  6.6.  HOLDER  ACTION  BY  WRITTEN  CONSENT.

          Any  action  which  may  be taken by Holders at a meeting may be taken
without  a  meeting  and  without  prior  notice  if  Holders holding at least a
Majority  in  Liquidation  Amount  of  all  Trust Securities entitled to vote in
respect  of  such action (or such larger proportion thereof as shall be required
by  any  other provision of this Trust Agreement) shall consent to the action in
writing.

          SECTION  6.7.  RECORD  DATE  FOR  VOTING  AND  OTHER  PURPOSES.

          For the purposes of determining the Holders who are entitled to notice
of  and  to  vote at any meeting or by written consent, or to participate in any
distribution  on  the  Trust Securities in respect of which a record date is not
otherwise  provided for in this Trust Agreement, or for the purpose of any other
action, the Administrators or Property Trustee may from time to time fix a date,
not more than 90 days prior to the date of any meeting of Holders or the payment
of  a distribution or other action, as the case may be, as a record date for the
determination  of  the  identity  of  the  Holders  of record for such purposes.

          SECTION  6.8.  ACTS  OF  HOLDERS.

          Any request, demand, authorization, direction, notice, consent, waiver
or  other action provided or permitted by this Trust Agreement to be given, made
or  taken by Holders may be embodied in and evidenced by one or more instruments
of  substantially  similar tenor signed by such Holders in person or by an agent
duly  appointed  in writing; and, except as otherwise expressly provided herein,
such  action  shall  become  effective  when  such instrument or instruments are
delivered  to  the  Property  Trustee.  Such  instrument or instruments (and the
action  embodied therein and evidenced thereby) are herein sometimes referred to
as  an  "Act"  of  the Holders signing such instrument or instruments.  Proof of
         ---
execution of any such instrument or of a writing appointing any such agent shall
be  sufficient  for  any purpose of this Trust Agreement and (subject to Section
8.1)  conclusive in favor of the Issuer Trustees, if made in the manner provided
in  this  Section.

          The  fact  and  date  of  the  execution  by  any  Person  of any such
instrument  or  writing  may  be  proved  by  the affidavit of a witness of such
execution  or by a certificate of a notary public or other officer authorized by

                                       36
<PAGE>
law  to  take  acknowledgments  of deeds, certifying that the individual signing
such  instrument  or  writing  acknowledged to him the execution thereof.  Where
such  execution  is  by  a signer acting in a capacity other than his individual
capacity,  such  certificate or affidavit shall also constitute sufficient proof
of  his authority.  The fact and date of the execution of any such instrument or
writing,  or  the authority of the Person executing the same, may also be proved
in any other manner which any Issuer Trustee or Administrator receiving the same
deems  sufficient.

          The  ownership  of  Trust Securities shall be proved by the Securities
Register.

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

          Without  limiting  the  foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Trust Security may do so with
regard to all or any part of the Liquidation Amount of such Trust Security or by
one  or  more  duly  appointed  agents  each of which may do so pursuant to such
appointment  with  regard  to  all  or  any  part  of  such  Liquidation Amount.

          If  any  dispute  shall arise among the Holders, the Administrators or
the Issuer Trustees with respect to the authenticity, validity or binding nature
of  any  request, demand, authorization, direction, consent, waiver or other Act
of  such  Holder or Issuer Trustee under this Article VI, then the determination
of  such matter by the Property Trustee shall be conclusive with respect to such
matter.

          SECTION  6.9.  INSPECTION  OF  RECORDS.

          Upon reasonable notice to the Administrators and the Property Trustee,
the  records  of  the Issuer Trust shall be open to inspection by Holders during
normal  business  hours  for  any  purpose  reasonably  related to such Holder's
interest  as  a  Holder.

                                   ARTICLE VII

                         REPRESENTATIONS AND WARRANTIES

          SECTION  7.1.  REPRESENTATIONS  AND WARRANTIES OF THE PROPERTY TRUSTEE
AND  THE  DELAWARE  TRUSTEE.

          The  Property  Trustee  and  the  Delaware  Trustee, each severally on
behalf  of  and  as to itself, hereby represents and warrants for the benefit of
the  Depositor  and  the  Holders  that:

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<PAGE>
          (a)     The  Property  Trustee  is  a  banking  corporation with trust
powers,  duly organized, validly existing and in good standing under the laws of
the  State  of  Delaware  with  the  trust  powers  and authority to execute and
deliver,  and  to  carry out and perform its obligations under the terms of this
Trust  Agreement.

          (b)     The  execution,  delivery  and  performance  by  the  Property
Trustee  of  this  Trust  Agreement  have  been duly authorized by all necessary
corporate  action  on the part of the Property Trustee; and this Trust Agreement
has  been duly executed and delivered by the Property Trustee, and constitutes a
legal, valid and binding obligation of the Property Trustee, enforceable against
it  in  accordance  with  its  terms,  subject  to  applicable  bankruptcy,
reorganization, receivership, conservatorship, moratorium, insolvency, and other
similar  laws affecting creditors' rights generally and to general principles of
equity and the discretion of the court (regardless of whether the enforcement of
such  remedies  is  considered  in  a  proceeding  in  equity  or  at  law).

          (c)     The  execution,  delivery  and  performance  of  this  Trust
Agreement by the Property Trustee do not conflict with or constitute a breach of
the  certificate  of  incorporation  or  by-laws  of  the  Property  Trustee.

          (d)     At Closing, the Property Trustee has not knowingly created any
Liens  on  the  Trust  Securities.

          (e)     No consent, approval or authorization of, or registration with
or  notice  to,  any  state  or  federal  banking  authority is required for the
execution,  delivery  or  performance  by  the  Property  Trustee, of this Trust
Agreement.

          (f)     The  Delaware  Trustee is duly organized, validly existing and
in  good standing under the laws of the State of Delaware, with the trust powers
and  authority  to  execute  and  deliver,  and  to  carry  out  and perform its
obligations  under  the  terms  of,  this  Trust  Agreement.

          (g)     The  execution,  delivery  and  performance  by  the  Delaware
Trustee  of  this  Trust  Agreement  have  been duly authorized by all necessary
corporate  action  on the part of the Delaware Trustee; and this Trust Agreement
has  been duly executed and delivered by the Delaware Trustee, and constitutes a
legal, valid and binding obligation of the Delaware Trustee, enforceable against
it  in  accordance  with  its  terms,  subject  to  applicable  bankruptcy,
reorganization, receivership, conservatorship, moratorium, insolvency, and other
similar  laws  affecting creditors' right generally and to general principles of
equity and the discretion of the court (regardless of whether the enforcement of
such  remedies  is  considered  in  a  proceeding  in  equity  or  at  law).

          (h)     The  execution,  delivery  and  performance  of  this  Trust
Agreement by the Delaware Trustee do not conflict with or constitute a breach of
the  certificate  of  incorporation  or  by-laws  of  the  Delaware  Trustee.

                                       38
<PAGE>
          (i)     No consent, approval or authorization of, or registration with
or  notice  to  any  state  or  Federal  banking  authority  is required for the
execution,  delivery  or  performance  by  the  Delaware  Trustee, of this Trust
Agreement.

          (j)     The  Delaware  Trustee  is  an  entity which has its principal
place  of  business  in  the  State  of  Delaware.

          SECTION  7.2.  REPRESENTATIONS  AND  WARRANTIES  OF  DEPOSITOR.

          The  Depositor  hereby  represents and warrants for the benefit of the
Holders  that:

          (a)     The  Trust Securities Certificates issued at Closing on behalf
of  the  Issuer  Trust  have  been  duly  authorized and will have been duly and
validly  executed, and, subject to payment therefor, issued and delivered by the
Issuer  Trustees pursuant to the terms and provisions of, and in accordance with
the  requirements  of, this Trust Agreement, and the Holders will be, as of each
such  date,  entitled  to  the  benefits  of  this  Trust  Agreement;  and

          (b)     There are no taxes, fees or other governmental charges payable
by the Issuer Trust (or the Issuer Trustees on behalf of the Issuer Trust) under
the  laws  of  the  State  of  Delaware  or any political subdivision thereof in
connection  with  the execution, delivery and performance by either the Property
Trustee  or  the  Delaware Trustee, as the case may be, of this Trust Agreement.

                                  ARTICLE VIII

                     THE ISSUER TRUSTEES; THE ADMINISTRATORS

          SECTION  8.1.  CERTAIN  DUTIES  AND  RESPONSIBILITIES.

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

                                       39
<PAGE>
the  Issuer  Trustees and Administrators otherwise existing at law or in equity,
are  agreed  by  the  Depositor and the Holders to replace such other duties and
liabilities  of  the  Issuer  Trustees  and  Administrators.

          (b)     All payments made by the Property Trustee or a Paying Agent in
respect of the Trust Securities shall be made only from the revenue and proceeds
from  the  Trust  Property and only to the extent that there shall be sufficient
revenue  or proceeds from the Trust Property to enable the Property Trustee or a
Paying Agent to make payments in accordance with the terms hereof.  Each Holder,
by  its  acceptance  of a Trust Security, agrees that it will look solely to the
revenue and proceeds from the Trust Property to the extent legally available for
distribution  to  it as herein provided and that neither the Issuer Trustees nor
the  Administrators  are personally liable to it for any amount distributable in
respect of any Trust Security or for any other liability in respect of any Trust
Security.  This  Section  8.1(b)  does  not  limit  the  liability of the Issuer
Trustees  expressly  set forth elsewhere in this Trust Agreement or, in the case
of  the  Property  Trustee,  in  the  Trust  Indenture  Act.

          (c)     The  Property  Trustee,  before the occurrence of any Event of
Default  and  after  the curing of all Events of Default that may have occurred,
shall  undertake  to  perform  only such duties as are specifically set forth in
this  Trust  Agreement  (including  pursuant  to  Section 10.10), and no implied
covenants  shall be read into this Trust Agreement against the Property Trustee.
If  an Event of Default has occurred (that has not been cured or waived pursuant
to Section 5.13 of the Indenture), the Property Trustee shall enforce this Trust
Agreement  for  the benefit of the Holders and shall exercise such of the rights
and powers vested in it by this Trust Agreement, 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  Trust Agreement shall be construed to
relieve  the  Property  Trustee from liability for its own negligent action, its
own  negligent  failure  to  act,  or  its  own willful misconduct, except that:

               (i)     prior to the occurrence of any Event of Default and after
     the curing or waiving of all such Events of Default that may have occurred:

                    (A)     the  duties  and obligations of the Property Trustee
          shall  be  determined  solely  by the express provisions of this Trust
          Agreement  (including  pursuant  to  Section  10.10), and the Property
          Trustee  shall not be liable except for the performance of such duties
          and  obligations as are specifically set forth in this Trust Agreement
          (including  pursuant  to  Section  10.10);  and

                    (B)     in  the  absence  of  bad  faith  on the part of the
          Property  Trustee,  the  Property 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
          Property  Trustee  and  conforming  to  the requirements of this Trust
          Agreement;  but  in the case of any such certificates or opinions that
          by any provision hereof or of the Trust Indenture Act are specifically
          required to be furnished to the Property Trustee, the Property Trustee

                                       40
<PAGE>
          shall  be under a duty to examine the same to determine whether or not
          they  conform  to  the  requirements  of  this  Trust  Agreement;

               (ii)     the  Property  Trustee shall not be liable for any error
     of  judgment  made  in  good faith by an authorized officer of the Property
     Trustee,  unless it shall be proved that the Property Trustee was negligent
     in  ascertaining  the  pertinent  facts;

               (iii)     the  Property  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 at least a Majority in
     Liquidation  Amount  of the Capital Securities relating to the time, method
     and  place  of  conducting  any  proceeding for any remedy available to the
     Property  Trustee,  or  exercising  any  trust  or power conferred upon the
     Property  Trustee  under  this  Trust  Agreement;

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

               (v)     the Property Trustee shall not be liable for any interest
     on  any  money  received  by  it  except as it may otherwise agree with the
     Depositor;  and  money  held by the Property Trustee need not be segregated
     from  other  funds  held  by  it  except in relation to the Payment Account
     maintained  by  the  Property Trustee pursuant to Section 3.1 and except to
     the  extent  otherwise  required  by  law;

               (vi)     the  Property  Trustee  shall  not  be  responsible  for
     monitoring the compliance by the Administrators or the Depositor with their
     respective  duties  under  this  Trust  Agreement,  nor  shall the Property
     Trustee  be  liable  for  the  default  or  misconduct  of any other Issuer
     Trustee,  the  Administrators  or  the  Depositor;  and

               (vii)     no  provision of this Trust Agreement shall require the
     Property  Trustee  to  expend  or  risk  its  own  funds or otherwise incur
     personal  financial liability in the performance of any of its duties or in
     the  exercise of any of its rights or powers, if the Property 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 Trust
     Agreement  or  adequate  indemnity  against  such  risk or liability is not
     reasonably  assured  to  it.

          (e)     The Administrators shall not be responsible for monitoring the
compliance  by the Issuer Trustees or the Depositor with their respective duties
under  this  Trust  Agreement,  nor  shall  any  Administrator be liable for the
default  or  misconduct  of  any other Administrator, the Issuer Trustees or the
Depositor.

SECTION  8.2.  CERTAIN  NOTICES.

                                       41
<PAGE>
          (a)     Within five Business Days after the occurrence of any Event of
Default  actually  known  to  a Responsible Officer of the Property Trustee, the
Property  Trustee  shall  transmit,  in the manner and to the extent provided in
Section  10.8,  notice  of  such  Event  of  Default  to  the  Holders  and  the
Administrators,  unless  such  Event of Default shall have been cured or waived.

          (b)     Within  five  Business Days after the receipt of notice of the
Depositor's exercise of its right to defer the payment of interest on the Junior
Subordinated  Debentures  pursuant  to the Indenture, the Property Trustee shall
transmit,  in  the  manner and to the extent provided in Section 10.8, notice of
such  exercise to the Holders and the Administrators, unless such exercise shall
have  been  revoked.

          SECTION  8.3.  CERTAIN  RIGHTS  OF  PROPERTY  TRUSTEE.

          Subject  to  the  provisions  of  Section  8.1:

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

          (b)     any  direction  or  act  of the Depositor contemplated by this
Trust  Agreement  shall  be  sufficiently evidenced by an Officers' Certificate;

          (c)     the  Property  Trustee  shall  have  no  duty  to  see  to any
recording,  filing or registration of any instrument (including any financing or
continuation  statement  or  any  filing  under  tax  or securities laws) or any
re-recording,  refiling  or  re-registration  thereof;

          (d)     the  Property  Trustee  may  consult  with  counsel of its own
choosing  (which  counsel  may  be  counsel  to  the  Depositor  or  any  of its
Affiliates, and may include any of its employees) and the advice of such counsel
shall be full and complete authorization and protection in respect of any action
taken  suffered or omitted by it hereunder in good faith and in reliance thereon
and in accordance with such advice; the Property Trustee shall have the right at
any  time  to  seek  instructions  concerning  the  administration of this Trust
Agreement  from  any  court  of  competent  jurisdiction;

          (e)     the  Property Trustee shall be under no obligation to exercise
any  of the rights or powers vested in it by this Trust Agreement at the request
or direction of any of the Holders pursuant to this Trust Agreement, unless such
Holders  shall  have  offered  to  the  Property  Trustee  security or indemnity
satisfactory  to  it  against the costs, expenses and liabilities which might be
incurred  by  it  in  compliance  with  such request or direction; provided that
nothing  contained in this Section 8.3(e) shall be taken to relieve the Property
Trustee,  upon  the  occurrence  of  an  Event  of Default, of its obligation to
exercise  the  rights  and  powers  vested  in  it  by  this  Trust  Agreement;

                                       42
<PAGE>
          (f)     the  Property  Trustee  shall  not  be  bound  to  make  any
investigation  into  the facts or matters stated in any resolution, certificate,
statement,  instrument,  opinion,  report,  notice,  request,  consent,  order,
approval, bond, debenture, note or other evidence of indebtedness or other paper
or  document,  unless  requested in writing to do so by one or more Holders, but
the  Property  Trustee  may make such further inquiry or investigation into such
facts  or  matters  as  it  may  see  fit;

          (g)     the  Property  Trustee may execute any of the trusts or powers
hereunder  or  perform  any  of  its  duties  hereunder either directly or by or
through its agents or attorneys, provided that the Property 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;

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

          (i)     except  as  otherwise  expressly  provided  by  this  Trust
Agreement,  the  Property  Trustee shall not be under any obligation to take any
action  that  is  discretionary  under  the  provisions of this Trust Agreement.

          No  provision  of  this  Trust Agreement shall be deemed to impose any
duty  or obligation on any Issuer Trustee or Administrator 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 Property
Trustee  shall  be unqualified or incompetent in accordance with applicable law,
to  perform  any such act or acts, or to exercise any such right, power, duty or
obligation.  No permissive power or authority available to any Issuer Trustee or
Administrator  shall  be  construed  to  be  a  duty.

          SECTION  8.4.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

          The recitals contained herein and in the Trust Securities Certificates
shall  be  taken  as  the statements of the Issuer Trust, and neither the Issuer
Trustees nor the Administrators assume any responsibility for their correctness.
The  Issuer Trustees and the Administrators shall not be accountable for the use
or  application  by  the  Depositor  of  the proceeds of the Junior Subordinated
Debentures.

          SECTION  8.5.  MAY  HOLD  SECURITIES.

          The  Depositor,  the  Administrators,  any Issuer Trustee or any other
agent  of any Issuer Trustee or the Issuer Trust, in its individual or any other

                                       43
<PAGE>
capacity,  may  become  the owner or pledgee of Trust Securities and, subject to
Sections  5.5(c),  8.8  and 8.13 and except as provided in the definition of the
term  "Outstanding"  in Article I, may otherwise deal with the Issuer Trust with
the  same  rights  it would have if it were not the Depositor, an Administrator,
Issuer  Trustee  or  such  other  agent.

          SECTION  8.6.  COMPENSATION;  INDEMNITY;  FEES.

          The  Depositor  agrees:

          (a)     to  pay  to  the  Issuer Trustees from time to time reasonable
compensation  for  all  services  rendered by them hereunder (which compensation
shall  not be limited by any provision of law in regard to the compensation of a
trustee  of  an  express  trust);

          (b)     to  reimburse  the  Issuer  Trustees  upon  request  for  all
reasonable  expenses,  disbursements and advances incurred or made by the Issuer
Trustees in accordance with any provision of this Trust Agreement (including the
reasonable  compensation, expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to their
negligence  or  willful  misconduct;  and

          (c)     to  the  fullest  extent  permitted  by  applicable  law,  to
indemnify  and  hold  harmless (i) each Issuer Trustee, (ii) each Administrator,
(iii)  any  Affiliate  of  any  Issuer  Trustee,  (iv)  any  officer,  director,
shareholder,  employee,  representative  or agent of any Issuer Trustee, and (v)
any  employee  or  agent  of  the  Issuer  Trust,  (referred  to  herein  as  an
"Indemnified  Person")  from  and  against  any  loss,  damage,  liability, tax,
 -------------------
penalty,  expense  or  claim  of  any kind or nature whatsoever incurred by such
Indemnified  Person arising out of or in connection with the creation, operation
or  dissolution  of the Issuer Trust or any act or omission performed or omitted
by  such Indemnified Person in good faith on behalf of the Issuer Trust and in a
manner  such  Indemnified  Person  reasonably believed to be within the scope of
authority  conferred  on such Indemnified Person by this Trust Agreement, except
that no Indemnified Person shall be entitled to be indemnified in respect of any
loss,  damage  or  claim  incurred  by  such  Indemnified  Person  by  reason of
negligence  or  willful  misconduct  with  respect  to  such  acts or omissions.

          The  provisions  of  this Section 8.6 shall survive the termination of
this  Trust Agreement and the resignation or removal of the Indemnified Persons.

          The  obligation of the Depositor under this Section 8.6 to compensate,
reimburse  and indemnify the Issuer Trustees shall be secured by a Lien upon all
Trust  Property  (except  funds  held  in  trust  for  the benefit of Holders of
particular  Trust  Securities),  but  only  to the extent of the interest of the
Holder  of  the  Common  Securities  therein.

          The  Depositor, any Administrator and any Issuer Trustee may engage in
or  possess an interest in other business ventures of any nature or description,
independently  or  with  others,  similar  or  dissimilar to the business of the
Issuer  Trust,  and  the  Issuer Trust and the Holders of Trust Securities shall
have  no  rights  by  virtue  of this Trust Agreement in and to such independent
ventures or the income or profits derived therefrom, and the pursuit of any such
venture, even if competitive with the business of the Issuer Trust, shall not be

                                       44
<PAGE>
deemed  wrongful or improper.  Neither the Depositor, any Administrator, nor any
Issuer  Trustee shall be obligated to present any particular investment or other
opportunity to the Issuer Trust even if such opportunity is of a character that,
if  presented  to  the Issuer Trust, could be taken by the Issuer Trust, and the
Depositor,  any Administrator or any Issuer Trustee shall have the right to take
for  its own account (individually or as a partner or fiduciary) or to recommend
to  others  any  such  particular  investment  or other opportunity.  Any Issuer
Trustee  may  engage or be interested in any financial or other transaction with
the  Depositor  or any Affiliate of the Depositor, or may act as depository for,
trustee  or agent for, or act on any committee or body of holders of, securities
or  other  obligations  of  the  Depositor  or  its  Affiliates.

          SECTION  8.7.  CORPORATE  PROPERTY  TRUSTEE  REQUIRED;  ELIGIBILITY OF
TRUSTEES  AND  ADMINISTRATORS.

          (a)     There  shall at all times be a Property Trustee hereunder with
respect to the Trust Securities.  The Property Trustee shall be a Person that is
a  national or state chartered bank and eligible pursuant to the Trust Indenture
Act  to  act  as  such  and  has  a  combined  capital  and  surplus of at least
$50,000,000.00  If  any  such  Person  publishes  reports  of condition at least
annually, pursuant to law or to the requirements of its supervising or examining
authority,  then  for  the  purposes  of  this Section, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set  forth  in its most recent report of condition so published.  If at any time
the  Property  Trustee  with  respect  to the Trust Securities shall cease to be
eligible  in  accordance  with  the  provisions of this Section, it shall resign
immediately  in  the  manner  and  with the effect hereinafter specified in this
Article  VIII.  At  the  time  of  appointment,  the  Property Trustee must have
securities  rated  in one of the three highest rating categories by a nationally
recognized  statistical  rating  organization.

          (b)     There  shall  at  all  times  be  one  or  more Administrators
hereunder.  Each  Administrator shall be either a natural person who is at least
21  years  of  age  or a legal entity that shall act through one or more persons
authorized  to  bind  that  entity.  An  employee,  officer  or Affiliate of the
Depositor  may  serve  as  an  Administrator.

          (c)     There  shall at all times be a Delaware Trustee.  The Delaware
Trustee shall either be (i) a natural person who is at least 21 years of age and
a  resident  of  the State of Delaware or (ii) a legal entity with its principal
place  of  business  in  the  State  of  Delaware  and  that otherwise meets the
requirements  of  applicable  Delaware  law  that  shall act through one or more
persons  authorized  to  bind  such  entity.

          SECTION  8.8.  CONFLICTING  INTERESTS.

          (a)     If  the  Property  Trustee  has or shall acquire a conflicting
interest  within  the  meaning  of the Trust Indenture Act, the Property Trustee
shall  either eliminate such interest or resign, to the extent and in the manner
provided  by, and subject to the provisions of, the Trust Indenture Act and this
Trust  Agreement.

                                       45
<PAGE>
          (b)     The  Guarantee  and  the  Indenture  shall  be  deemed  to  be
sufficiently described in this Trust Agreement for the purposes of clause (i) of
the  first  proviso  contained  in  Section  310(b)  of the Trust Indenture Act.

          SECTION  8.9.  CO-TRUSTEES  AND  SEPARATE  TRUSTEE.

          Unless  an  Event of Default shall have occurred and be continuing, at
any  time  or  times,  for  the purpose of meeting the legal requirements of the
Trust  Indenture  Act  or  of  any  jurisdiction  in which any part of the Trust
Property  may  at  the time be located, the Property Trustee shall have power to
appoint, and upon the written request of the Property Trustee, the Depositor and
the  Administrators shall for such purpose join with the Property Trustee in the
execution, delivery, and performance of all instruments and agreements necessary
or  proper  to  appoint,  one  or  more Persons approved by the Property Trustee
either  to  act  as co-trustee, jointly with the Property Trustee, of all or any
part of such Trust Property, or to the extent required by law to act as separate
trustee of any such property, in either case with such powers as may be provided
in  the  instrument of appointment, and to vest in such Person or Persons in the
capacity  aforesaid,  any  property,  title,  right or power deemed necessary or
desirable,  subject  to the other provisions of this Section.  Any co-trustee or
separate  trustee  appointed  pursuant  to  this  Section  shall either be (i) a
natural  person  who  is  at  least 21 years of age and a resident of the United
States or (ii) a legal entity with its principal place of business in the United
States  that  shall  act  through  one  or  more persons authorized to bind such
entity.

          Should  any  written  instrument from the Depositor be required by any
co-trustee  or  separate  trustee so appointed for more fully confirming to such
co-trustee  or  separate  trustee such property, title, right, or power, any and
all  such instruments shall, on request, be executed, acknowledged and delivered
by  the  Depositor.

          Every co-trustee or separate trustee shall, to the extent permitted by
law,  but  to  such  extent  only,  be appointed subject to the following terms,
namely:

          (a)     The  Trust  Securities  shall  be  executed  by  one  or  more
Administrators, and the Trust Securities shall be authenticated and delivered by
the  Property  Trustee and all rights, powers, duties, and obligations hereunder
in  respect  of the custody of securities, cash and other personal property held
by,  or required to be deposited or pledged with, the Property Trustee specified
hereunder,  shall  be  exercised, solely by the Property Trustee and not by such
co-trustee  or  separate  trustee.

          (b)     The  rights,  powers, duties, and obligations hereby conferred
or  imposed upon the Property Trustee in respect of any property covered by such
appointment shall be conferred or imposed upon and exercised or performed by the
Property  Trustee  and  such co-trustee or separate trustee jointly, as shall be
provided  in  the  instrument  appointing  such  co-trustee or separate trustee,
except  to  the  extent  that  under  any  law  of any jurisdiction in which any
particular  act is to be performed, the Property Trustee shall be incompetent or
unqualified  to perform such act, in which event such rights, powers, duties and
obligations  shall  be  exercised  and  performed by such co-trustee or separate
trustee.

                                       46
<PAGE>
          (c)     The  Property Trustee at any time, by an instrument in writing
executed  by  it,  with the written concurrence of the Depositor, may accept the
resignation of or remove any co-trustee or separate trustee appointed under this
Section,  and,  in  case  a  Debenture  Event  of  Default  has  occurred and is
continuing,  the Property Trustee shall have power to accept the resignation of,
or  remove,  any  such co-trustee or separate trustee without the concurrence of
the  Depositor.  Upon the written request of the Property Trustee, the Depositor
shall  join with the Property Trustee in the execution, delivery and performance
of  all  instruments  and  agreements  necessary  or  proper  to effectuate such
resignation  or  removal.  A  successor to any co-trustee or separate trustee so
resigned or removed may be appointed in the manner provided in this Section 8.9.

          (d)     No  co-trustee  or  separate  trustee  hereunder  shall  be
personally  liable  by  reason of any act or omission of the Property Trustee or
any  other  trustee  hereunder.

          (e)     The  Property Trustee shall not be liable by reason of any act
of  a  co-trustee  or  separate  trustee.

          (f)     Any  Act of Holders delivered to the Property Trustee shall be
deemed  to  have  been  delivered  to each such co-trustee and separate trustee.

          SECTION  8.10.  RESIGNATION  AND  REMOVAL;  APPOINTMENT  OF SUCCESSOR.

          No  resignation  or  removal  of  any  Issuer  Trustee  (the "Relevant
                                                                        --------
Trustee")  and  no  appointment  of a successor trustee pursuant to this Article
-------
shall  become  effective  until  the  acceptance of appointment by the successor
trustee  in  accordance  with  the  applicable  requirements  of  Section  8.11.

          Subject to the immediately preceding paragraph, a Relevant Trustee may
resign  at any time by giving written notice thereof to the Holders.  The Holder
of  the  Common Securities shall appoint a successor by requesting from at least
three  Persons  meeting the eligibility requirements its expenses and charges to
serve  as  the  successor  trustee on a form provided by the Administrators, and
selecting  the  Person  who  agrees  to the lowest expenses and charges.  If the
instrument of acceptance by the successor trustee required by Section 8.11 shall
not  have been delivered to the Relevant Trustee within 60 days after the giving
of such notice of resignation, the Relevant Trustee may petition, at the expense
of the Issuer Trust, any court of the State of Delaware for the appointment of a
successor  Relevant  Trustee.

          The  Property  Trustee  or  the Delaware Trustee may be removed at any
time  (i)  for  cause  (including  upon  the  occurrence  of an Event of Default
described  in  subparagraph  (5)  of  the definition thereof with respect to the
Relevant Trustee) by the Holder of the Common Securities, or (ii) if a Debenture
Event  of  Default  shall have occurred and be continuing at any time, by Act of
the  Holders  of  at  least  a  Majority  in  Liquidation  Amount of the Capital
Securities, delivered to the Relevant Trustee (in its individual capacity and on
behalf  of  the  Issuer  Trust).

          If  a  Relevant Trustee shall be removed or become incapable of acting
as  Issuer  Trustee,  or  if any vacancy shall occur in the office of any Issuer
Trustee  for  any  cause,  the  Holder  of  the Common Securities shall promptly

                                       47
<PAGE>
appoint  a  successor  Relevant  Trustee  or Trustees, and such successor Issuer
Trustee shall comply with the applicable requirements of Section 8.11, provided,
however,  if  a Debenture Event of Default shall have occurred and be continuing
at  such  time,  the Holders of the Capital Securities, by Act of the Holders of
record  of  not  less  than  25%  in aggregate Liquidation Amount of the Capital
Securities  than  Outstanding  delivered to such Relevant Trustee, shall appoint
such successor trustee.  If no successor trustee shall have been so appointed by
the Holder of the Common Securities or the Holders of the Capital Securities, as
applicable,  or  shall  not  have accepted appointment in the manner required by
Section  8.11  hereof, any Holder, on behalf of himself and all others similarly
situated,  or  any  other Issuer Trustee, may petition any court in the State of
Delaware  for  the  appointment  of  a  successor  trustee.

          The  Property  Trustee  shall give notice of each resignation and each
removal of a Relevant Trustee and each appointment of a successor trustee to all
Holders  in  the  manner  provided  in Section 10.8 and shall give notice to the
Depositor  and to the Administrators.  Each notice shall include the name of the
Relevant  Trustee  and  the  address  of its Corporate Trust Office if it is the
Property  Trustee.

          Notwithstanding  the  foregoing  or  any other provision of this Trust
Agreement,  in  the  event  any Delaware Trustee who is a natural person dies or
becomes,  in  the opinion of the Holder of the Common Securities, incompetent or
incapacitated, the vacancy created by such death, incompetence or incapacity may
be  filled  by  the Property Trustee following the procedures regarding expenses
and  charges set forth above (with the successor in each case being a Person who
satisfies the eligibility requirements for the Delaware Trustee, as the case may
be,  set  forth  in  Section  8.7).

          SECTION  8.11.  ACCEPTANCE  OF  APPOINTMENT  BY  SUCCESSOR.

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

                                       48
<PAGE>
          Upon  request of any such successor Relevant Trustee, the Issuer Trust
shall  execute  any  and all instruments for more fully and certainly vesting in
and  confirming  to  such successor Relevant Trustee all such rights, powers and
trusts  referred  to  in  the  preceding  paragraph.

          No  successor  Relevant Trustee shall accept its appointment unless at
the  time  of such acceptance such successor Relevant Trustee shall be qualified
and  eligible  under  this  Article  VIII.

          SECTION  8.12.  MERGER,  CONVERSION,  CONSOLIDATION  OR  SUCCESSION TO
BUSINESS.

          Any Person into which the Property Trustee or the Delaware Trustee may
be  merged  or  converted  or  with  which it may be consolidated, or any Person
resulting  from  any  merger, conversion or consolidation to which such Relevant
Trustee  shall  be a party, or any Person succeeding to all or substantially all
the corporate trust business of such Relevant Trustee, shall be the successor of
such  Relevant  Trustee  hereunder, provided that such Person shall be otherwise
qualified  and eligible under this Article VIII, without the execution or filing
of  any  paper  or  any  further  act  on the part of any of the parties hereto.

          SECTION  8.13.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST DEPOSITOR OR
ISSUER  TRUST.

          If  and when the Property Trustee shall be or become a creditor of the
Depositor (or any other obligor upon the Trust Securities), the Property Trustee
shall  be  subject  to  the  provisions of the Trust Indenture Act regarding the
collection  of  claims against the Depositor (or any such other obligor) only if
this  Trust  Agreement  is  subject  to  the  Trust  Indenture  Act.

          SECTION  8.14.  TRUSTEE  MAY  FILE  PROOFS  OF  CLAIM.

          In  case  of  any  receivership,  insolvency, liquidation, bankruptcy,
reorganization,  arrangement,  adjustment, composition or other similar judicial
proceeding  relative  to  the  Issuer  Trust or any other obligor upon the Trust
Securities  or  the  property  of the Issuer Trust or of such other obligor, the
Property  Trustee  (irrespective  of  whether  any  Distributions  on  the Trust
Securities  shall  then  be  due  and  payable  and  irrespective of whether the
Property  Trustee shall have made any demand on the Issuer Trust for the payment
of  any  past due Distributions) shall be entitled and empowered, to the fullest
extent  permitted  by  law,  by  intervention  in  such proceeding or otherwise:

          (a)     to  file  and  prove  a  claim  for  the  whole  amount of any
Distributions  owing  and  unpaid in respect of the Trust Securities and to file
such other papers or documents as may be necessary or advisable in order to have
the  claims  of  the  Property  Trustee  (including any claim for the reasonable
compensation,  expenses, disbursements and advances of the Property Trustee, its
agents  and counsel) and of the Holders allowed in such judicial proceeding; and

          (b)     to collect and receive any monies or other property payable or
deliverable  on  any  such claims and to distribute the same; and any custodian,
receiver,  assignee, trustee, liquidator, sequestrator or other similar official

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in any such judicial proceeding is hereby authorized by each Holder to make such
payments  to  the  Property Trustee and, in the event the Property Trustee shall
consent  to  the  making of such payments directly to the Holders, to pay to the
Property  Trustee  any  amount due it for the reasonable compensation, expenses,
disbursements  and advances of the Property Trustee, its agents and counsel, and
any  other  amounts  due  the  Property  Trustee.

          Nothing  contained  herein  shall  be deemed to authorize the Property
Trustee  to  authorize  or consent to or accept or adopt on behalf of any Holder
any  plan  of  reorganization, arrangement, adjustment or compensation affecting
the  Trust  Securities  or  the rights of any Holder thereof or to authorize the
Property  Trustee  to  vote  in  respect  of the claim of any Holder in any such
proceeding.

          SECTION  8.15.  REPORTS  BY  PROPERTY  TRUSTEE.

          (a)     Not later than January 31 of each year commencing with January
31,  2002, the Property Trustee shall transmit to all Holders in accordance with
Section  10.8,  and to the Depositor, a brief report dated as of the immediately
preceding  December  31  with  respect  to:

               (i)     its eligibility under Section 8.7 or, in lieu thereof, if
     to  the  best  of  its knowledge it has continued to be eligible under said
     Section,  a  written  statement  to  such  effect;  and

               (ii)     any  change  in the property and funds in its possession
     as  Property Trustee since the date of its last report and any action taken
     by the Property Trustee in the performance of its duties hereunder which it
     has not previously reported and which in its opinion materially affects the
     Trust  Securities.

          (b)     In  addition  the  Property  Trustee shall transmit to Holders
such  reports  concerning  the Property Trustee and its actions under this Trust
Agreement  as  may  be required pursuant to the Trust Indenture Act at the times
and  in  the  manner  provided  pursuant  thereto.

          (c)     A  copy  of  each  such  report  shall,  at  the  time of such
transmission  to  Holders,  be filed by the Property Trustee with the Depositor.

          SECTION  8.16.  REPORTS  TO  THE  PROPERTY  TRUSTEE.

          The  Depositor  and  the  Administrators on behalf of the Issuer Trust
shall provide to the Property Trustee such documents, reports and information as
required  or  specified by Section 314 of the Trust Indenture Act (if any and to
the  extent  applicable) and the compliance certificate required or specified by
Section  314(a) of the Trust Indenture Act in the form, in the manner and at the
times  set  forth  in Section 314 of the Trust Indenture Act.  The Depositor and
the  Administrators  shall annually file with the Property Trustee a certificate
specifying whether such Person is in compliance with all the terms and covenants
applicable  to  such  Person  hereunder.

          SECTION  8.17.  EVIDENCE  OF  COMPLIANCE  WITH  CONDITIONS  PRECEDENT.

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<PAGE>
          Each  of  the Depositor and the Administrators on behalf of the Issuer
Trust shall provide to the Property Trustee such evidence of compliance with any
conditions  precedent,  if any, provided for in this Trust Agreement 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)  of  the Trust Indenture Act shall be given in the form of an
Officers'  Certificate.

          SECTION  8.18.  NUMBER  OF  ISSUER  TRUSTEES.

          (a)     The  number  of  Issuer  Trustees  shall  be  two;  provided,
however,  the  Property Trustee and the Delaware Trustee may be the same Person,
in  which  case,  the  number  of  Issuer  Trustees  may  be  one.

          (b)     If  an  Issuer Trustee ceases to hold office for any reason, a
vacancy  shall  occur.  The  vacancy  shall  be  filled  with  an Issuer Trustee
appointed  in  accordance  with  Section  8.10.

          (c)     The  death,  resignation,  retirement,  removal,  bankruptcy,
incompetence  or incapacity to perform the duties of an Issuer Trustee shall not
operate to dissolve, terminate or annul the Issuer Trust or terminate this Trust
Agreement.

          SECTION  8.19.  DELEGATION  OF  POWER.

          (a)     Any  Administrator  may,  by power of attorney consistent with
applicable  law,  delegate to any other natural person over the age of 21 his or
her  power  for  the  purpose of executing any documents contemplated in Section
2.7(a)  or  making  any  governmental  filing;  and

          (b)     The  Administrators  shall have power to delegate from time to
time  to such of their number the doing of such things and the execution of such
instruments  either  in  the  name  of  the  Issuer  Trust  or  the names of the
Administrators  or  otherwise  as  the Administrators may deem expedient, to the
extent  such  delegation  is not prohibited by applicable law or contrary to the
provisions  of  this  Trust  Agreement.

          SECTION  8.20.  APPOINTMENT  OF  ADMINISTRATORS.

          (a)     The  Administrators  shall  be  appointed by the Holder of the
Common  Securities  and may be removed by the Holder of the Common Securities or
may  resign  at  any  time.  Upon  any resignation or removal, the Holder of the
Common  Securities  shall appoint a successor Administrator.  Each Administrator
shall  execute  this  Trust  Agreement  thereby  agreeing to comply with, and be
legally  bound  by,  all  of  the terms, conditions and provisions of this Trust
Agreement.  If  at  any  time there is no Administrator, the Property Trustee or
any Holder who has been a Holder of Trust Securities for at least six months may
petition  any court of competent jurisdiction for the appointment of one or more
Administrators.

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<PAGE>
          (b)     Whenever  a  vacancy  in  the  number  of Administrators shall
occur,  until  such  vacancy is filled by the appointment of an Administrator in
accordance  with  this Section 8.20, the Administrators in office, regardless of
their  number (and notwithstanding any other provision of this Agreement), shall
have  all  the  powers granted to the Administrators and shall discharge all the
duties  imposed  upon  the  Administrators  by  this  Trust  Agreement.

          (c)     Notwithstanding  the foregoing, or any other provision of this
Trust  Agreement, in the event any Administrator who is a natural person dies or
becomes,  in the opinion of the Holder of the Common Securities, incompetent, or
incapacitated, the vacancy created by such death, incompetence or incapacity may
be  filled  by  the  Holder of the Common Securities (with the successor being a
Person who satisfies the eligibility requirement for Administrators, as the case
may  be,  set  forth  in  Section  8.7).

          Except as otherwise provided in this Trust Agreement, or by applicable
law, any one Administrator may execute any document or otherwise take any action
which  the  Administrators  are  authorized  to take under this Trust Agreement.

                                   ARTICLE IX

                       DISSOLUTION, LIQUIDATION AND MERGER

SECTION  9.1.  DISSOLUTION  UPON  EXPIRATION  DATE.

          Unless  earlier  dissolved,  the  Issuer  Trust  shall  automatically
dissolve  on  January  1, 2033 (the "Expiration Date"), and thereafter the Trust
                                     ---------------
Property shall be distributed in accordance with Section 9.4.

          SECTION  9.2.  EARLY  DISSOLUTION.

          The  first  to  occur  of  any  of  the  following events is an "Early
                                                                           -----
Termination  Event,"  upon  the  occurrence  of  which  the  Issuer  Trust shall
------------------
dissolve:

          (a)     the  occurrence  of  the  appointment  of  a receiver or other
similar  official  in  any  liquidation,  insolvency  or similar proceeding with
respect  to  the Depositor or all or substantially all of its property, or entry
by  a court or other governmental agency of a decree or order and such decree or
order shall remain unstayed and undischarged for a period of 60 days, unless the
Depositor  shall  transfer the Common Securities as provided by Section 5.11, in
which  case  this  provision shall refer instead to any such successor Holder of
the  Common  Securities;

          (b)     the  written direction to the Property Trustee from the Holder
of  the  Common  Securities  at any time to dissolve the Issuer Trust and, after
paying  or making reasonable provision to pay all charges and obligations of the
Issuer  Trust  in accordance with Section 3808(e) of the Delaware Business Trust
Act, to distribute the Junior Subordinated Debentures to Holders in exchange for
the  Trust  Securities  (which direction, subject to Section 9.4(a), is optional
and  wholly  within  the  discretion  of  the  Holder of the Common Securities);

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<PAGE>
          (c)     the  repayment  of all of the Capital Securities in connection
with  the  repayment  at  maturity  or redemption of all the Junior Subordinated
Debentures;  and

          (d)     the entry of an order for dissolution of the Issuer Trust by a
court  of  competent  jurisdiction.

          SECTION  9.3.  TERMINATION.

          As soon as is practicable after the occurrence of an event referred to
in Section 9.1 or 9.2, and upon the completion of the winding-up and liquidation
of the Issuer Trust, the Administrators and the Issuer Trustees (each of whom is
hereby  authorized to take such action) shall file a certificate of cancellation
with  the  Secretary  of  State  of the State of Delaware terminating the Issuer
Trust  and, upon such filing, the respective obligations and responsibilities of
the  Issuer  Trustees,  the  Administrators  and  the  Issuer  Trust created and
continued  hereby  shall  terminate.

          SECTION  9.4.  LIQUIDATION.

          (a)     If  an Early Termination Event specified in clause (a), (b) or
(d) of Section 9.2 occurs or upon the Expiration Date, the Issuer Trust shall be
wound-up and liquidated by the Property Trustee as expeditiously as the Property
Trustee  determines  to  be  possible  by  distributing,  after paying or making
reasonable  provision  to  pay all claims and obligations of the Issuer Trust in
accordance  with  Section  3808(e)  of  the Delaware Business Trust Act, to each
Holder  a  Like  Amount  of  Junior  Subordinated Debentures, subject to Section
9.4(d).  Notice  of  liquidation  shall  be  given  by  the  Property Trustee by
first-class  mail,  postage  prepaid,  mailed not later than 15 nor more than 45
days  prior  to  the Liquidation Date to each Holder of Trust Securities at such
Holder's  address  appearing  in  the  Securities  Register.  All  notices  of
liquidation  shall:

               (i)     state  the  Liquidation  Date;

               (ii)     state  that,  from  and  after the Liquidation Date, the
     Trust  Securities  will no longer be deemed to be Outstanding and any Trust
     Securities  Certificates  not  surrendered  for  exchange will be deemed to
     represent  a  Like  Amount  of  Junior  Subordinated  Debentures;  and

               (iii)     provide  such information with respect to the mechanics
     by  which  Holders  may  exchange  Trust Securities Certificates for Junior
     Subordinated Debentures, or if Section 9.4(d) applies receive a Liquidation
     Distribution,  as  the  Administrators  or  the Property Trustee shall deem
     appropriate.

          (b)     Except  where  Section  9.2(c)  or 9.4(d) applies, in order to
effect  the  liquidation  of  the  Issuer  Trust  and distribution of the Junior
Subordinated  Debentures  to  Holders,  the  Property  Trustee shall establish a
record date for such distribution (which shall be not more than 30 days prior to
the Liquidation Date) and, either itself acting as exchange agent or through the
appointment  of a separate exchange agent, shall establish such procedures as it

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<PAGE>
shall  deem  appropriate  to  effect  the  distribution  of  Junior Subordinated
Debentures  in  exchange  for  the  Outstanding  Trust  Securities Certificates.

          (c)     Except  where  Section  9.2(c)  or  9.4(d)  applies, after the
Liquidation  Date,  (i)  the  Trust  Securities  will  no longer be deemed to be
Outstanding, (ii) the Clearing Agency for the Capital Securities or its nominee,
as  the  registered  Holder of the Global Capital Securities Certificates, shall
receive  a registered global certificate or certificates representing the Junior
Subordinated  Debentures  to be delivered upon such distribution with respect to
Capital  Securities  held  by  the Clearing Agency or its nominee, and (iii) any
Trust  Securities  Certificates  not held by the Clearing Agency for the Capital
Securities  or  its  nominee as specified in clause (ii) above will be deemed to
represent  Junior Subordinated Debentures having a principal amount equal to the
stated  Liquidation  Amount  of  the  Trust  Securities  represented thereby and
bearing  accrued  and  unpaid interest in an amount equal to the accumulated and
unpaid  Distributions  on  such  Trust  Securities  until  such certificates are
presented  to  the  Securities  Registrar  for  transfer  or  reissuance.

          (d)     If,  notwithstanding the other provisions of this Section 9.4,
whether  because  of  an  order  for dissolution entered by a court of competent
jurisdiction or otherwise, distribution of the Junior Subordinated Debentures is
not  practical,  or  if  any  Early Termination Event specified in clause (c) of
Section  9.2 occurs, the Issuer Trust shall be dissolved, and the Trust Property
shall  be  liquidated,  by  the  Property Trustee in such manner as the Property
Trustee determines.  In such event, on the date of the dissolution of the Issuer
Trust, Holders will be entitled to receive out of the assets of the Issuer Trust
available  for  distribution  to  Holders,  after  paying  or  making reasonable
provision  to  pay  all claims and obligations of the Issuer Trust in accordance
with  Section 3808(e) of the Delaware Business Trust Act, an amount equal to the
aggregate  of  Liquidation Amount per Trust Security plus accumulated and unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
                                                                     -----------
Distribution").  If, upon any such dissolution, the Liquidation Distribution can
------------
be  paid only in part because the Issuer Trust has insufficient assets available
to pay in full the aggregate Liquidation Distribution, then, subject to the next
succeeding  sentence,  the  amounts  payable  by  the  Issuer Trust on the Trust
Securities  shall  be paid on a pro rata basis (based upon Liquidation Amounts).
The  Holder  of  the  Common  Securities will be entitled to receive Liquidation
Distributions upon any such dissolution, pro rata (determined as aforesaid) with
Holders  of  Capital Securities, except that, if a Debenture Event of Default in
Sections  5.1(1)  or 5.1(2) of the Indenture has occurred and is continuing, the
Capital  Securities shall have a priority over the Common Securities as provided
in  Section  4.3.

          SECTION  9.5.  MERGERS,  CONSOLIDATIONS, AMALGAMATIONS OR REPLACEMENTS
OF  THE  ISSUER  TRUST.

          The  Issuer Trust may not merge with or into, consolidate, amalgamate,
or  be  replaced  by,  or  convey,  transfer  or lease its properties and assets
substantially as an entirety to, any entity, except pursuant to this Section 9.5
or Section 9.4.  At the request of the Holder of the Common Securities, and with
the  consent  of the Holders of at least a Majority in Liquidation Amount of the
Capital  Securities,  but without the consent of the Issuer Trustees, the Issuer
Trust  may  merge  with  or  into, consolidate, amalgamate, or be replaced by or

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<PAGE>
convey, transfer or lease its properties and assets substantially as an entirety
to a trust organized as such under the laws of any state; provided that (i) such
successor  entity  either  (a)  expressly  assumes all of the obligations of the
Issuer  Trust  with respect to the Capital Securities or (b) substitutes for the
Capital  Securities  other securities having substantially the same terms as the
Capital Securities (the "Successor Capital Securities") so long as the Successor
                         ----------------------------
Capital Securities have the same priority as the Capital Securities with respect
to distributions and payments upon liquidation, redemption and otherwise, (ii) a
trustee  of  such  successor entity possessing the same powers and duties as the
Property  Trustee is appointed to hold the Junior Subordinated Debentures, (iii)
such  merger,  consolidation, amalgamation, replacement, conveyance, transfer or
lease  does  not  cause  the Capital Securities (including any Successor Capital
Securities)  to  be  downgraded  by any nationally recognized statistical rating
organization,  if  such  Capital  Securities  have been rated by such nationally
recognized  statistical  rating  organization,  (iv) such merger, consolidation,
amalgamation,  replacement,  conveyance,  transfer  or  lease does not adversely
affect  the  rights,  preferences  and  privileges of the holders of the Capital
Securities (including any Successor Capital Securities) in any material respect,
(v)  such  successor entity has a purpose substantially identical to that of the
Issuer  Trust,  (vi)  prior  to  such  merger,  consolidation,  amalgamation,
replacement,  conveyance,  transfer  or  lease, the Issuer Trust has received an
Opinion  of  Counsel  from a firm experienced in such matters to the effect that
(a)  such merger, consolidation, amalgamation, replacement, conveyance, transfer
or  lease does not adversely affect the rights preferences and privileges of the
holders  of  the Capital Securities (including any Successor Capital Securities)
in  any  material  respect,  and  (b)  following  such  merger,  consolidation,
amalgamation,  replacement,  conveyance,  transfer  or lease, neither the Issuer
Trust  nor  such successor entity will be required to register as an "investment
company"  under  the  Investment  Company  Act  and  (vii)  the Depositor or any
permitted  transferee to whom it has transferred the Common Securities hereunder
owns  all  of  the common securities of such successor entity and guarantees the
obligations  of  such successor entity under the Capital Securities or Successor
Capital  Securities  at  least  to  the  extent  provided  by  the  Guarantee.
Notwithstanding  the  foregoing,  the  Issuer  Trust  shall not, except with the
consent  of  Holders  of  100%  in Liquidation Amount of the Capital Securities,
consolidate,  amalgamate,  merge  with  or  into,  or  be replaced by or convey,
transfer or lease its properties and assets substantially as an entirety to, any
other  entity  or permit any other entity to consolidate, amalgamate, merge with
or into, or replace it if such consolidation, amalgamation, merger, replacement,
conveyance,  transfer  or  lease  would  cause the Issuer Trust or the successor
entity  to  be  taxable  other than as a grantor trust for United States Federal
income  tax  purposes.

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

          SECTION  10.1.  LIMITATION  OF  RIGHTS  OF  HOLDERS.

          Except  as  set  forth  in  Section  9.2, the bankruptcy, dissolution,
termination, death or incapacity of any Person having an interest, beneficial or
otherwise,  in  Trust  Securities  shall  not  operate  to  terminate this Trust
Agreement,  nor  entitle  the legal or personal representatives or heirs of such
Person or any Holder for such Person, to claim an accounting, take any action or
bring  any  proceeding  in  any  court  for  a  partition  or  winding-up of the

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<PAGE>
arrangements  contemplated  hereby, nor otherwise affect the rights, obligations
and  liabilities  of  the  parties hereto or any of them.  Any merger or similar
agreement shall be executed by the Administrators on behalf of the Issuer Trust.

          SECTION  10.2.  AMENDMENT.

          (a)     This  Trust  Agreement may be amended from time to time by the
Holder  of  the  Common  Securities,  without  the  consent of any Holder of the
Capital  Securities  (i)  to  cure  any  ambiguity,  correct  or  supplement any
provision  herein  which may be inconsistent with any other provision herein, or
to  make any other provisions with respect to matters or questions arising under
this  Trust  Agreement,  provided,  however,  such amendment shall not adversely
affect  in  any  material respect the interests of any Holder or (ii) to modify,
eliminate  or  add  to  any provisions of this Trust Agreement to such extent as
shall  be  necessary  to  ensure that the Issuer Trust will not be taxable other
than  as  a  grantor  trust for United States Federal income tax purposes at any
time  that  any  Trust  Securities  are Outstanding or to ensure that the Issuer
Trust  will  not  be  required  to  register  as an investment company under the
Investment  Company  Act.

          (b)     Except as provided in Section 10.2(c) hereof, any provision of
this Trust Agreement may be amended by  the Holder of the Common Securities with
(i)  the  consent of Holders of at least a Majority in Liquidation Amount of the
Capital  Securities  and  (ii)  receipt  by the Issuer Trustees of an Opinion of
Counsel  to  the effect that such amendment or the exercise of any power granted
to  the  Issuer  Trustees  in accordance with such amendment will not affect the
Issuer Trust's being taxable as a grantor trust for United States Federal income
tax  purposes  or  the  Issuer  Trust's  exemption from status of an "investment
company"  under  the  Investment  Company  Act.

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

          (d)     Notwithstanding  any other provisions of this Trust Agreement,
no  Issuer  Trustee  shall  enter into or consent to any amendment to this Trust
Agreement which would cause the Issuer Trust to fail or cease to qualify for the
exemption  from  status  as an "investment company" under the Investment Company
Act  or  be  taxable  other  than  as a  grantor trust for United States Federal
income  tax  purposes.

          (e)     Notwithstanding  anything  in  this  Trust  Agreement  to  the
contrary,  without  the  consent  of  the Depositor and the Administrators, this
Trust  Agreement  may  not  be  amended in a manner which imposes any additional
obligation  on  the  Depositor  or  the  Administrators.

          (f)     In  the  event  that  any amendment to this Trust Agreement is
made,  the  Administrators or the Property Trustee shall promptly provide to the
Depositor  a  copy  of  such  amendment.

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<PAGE>
          (g)     No  amendment  to  this  Trust  Agreement  may be adopted that
adversely  affects  the  Property  Trustee's  or  the Delaware Trustee's rights,
duties or immunities under this Trust Agreement, except with the consent of such
Property Trustee or Delaware Trustee.  The Property Trustee shall be entitled to
receive  an  Opinion  of  Counsel  and an Officers' Certificate stating that any
amendment  to  this  Trust Agreement is in compliance with this Trust Agreement.

          (h)     Any  amendments  to  this  Trust  Agreement  made  pursuant to
Section 10.2(a) shall become effective when notice of such amendment is given to
the  Holders  of  the  Trust  Securities.

          SECTION  10.3.  SEPARABILITY.

          In  case  any  provision  in  this  Trust  Agreement  or  in the Trust
Securities  Certificates  shall  be  determined  to  be  invalid,  illegal  or
unenforceable,  the  validity,  legality  and  enforceability  of  the remaining
provisions  shall  not  in  any  way  be  affected  or  impaired  thereby.

          SECTION  10.4.  GOVERNING  LAW.

          THIS  TRUST  AGREEMENT  AND  THE RIGHTS AND OBLIGATIONS OF EACH OF THE
HOLDERS,  THE  ISSUER  TRUST,  THE  DEPOSITOR,  THE  ISSUER  TRUSTEES  AND  THE
ADMINISTRATORS  SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF  THE  STATE OF DELAWARE AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED BY SUCH
LAWS  WITHOUT  REGARD  TO  THE  PRINCIPLES  OF  CONFLICT OF LAWS OF THE STATE OF
DELAWARE  OR  ANY  OTHER JURISDICTION THAT WOULD CALL FOR THE APPLICATION OF THE
LAW  OF  ANY  JURISDICTION  OTHER THAN THE STATE OF DELAWARE; PROVIDED, HOWEVER,
THAT  THERE  SHALL  NOT  BE  APPLICABLE  TO  THE  HOLDERS, THE ISSUER TRUST, THE
DEPOSITOR,  THE  ISSUER TRUSTEES, THE ADMINISTRATORS OR THIS TRUST AGREEMENT ANY
PROVISION  OF THE LAWS (STATUTORY OR COMMON) OF THE STATE OF DELAWARE PERTAINING
TO  TRUSTS  OTHER  THAN  THE  DELAWARE  BUSINESS  TRUST  ACT  THAT RELATE TO  OR
REGULATE, IN A MANNER INCONSISTENT WITH THE TERMS HEREOF (A) THE FILING WITH ANY
COURT OR GOVERNMENTAL BODY OR AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF TRUSTEE
FEES  AND  CHARGES,  (B)  AFFIRMATIVE  REQUIREMENTS  TO POST BONDS FOR TRUSTEES,
OFFICERS,  AGENTS OR EMPLOYEES OF A TRUST, (C) THE NECESSITY FOR OBTAINING COURT
OR  OTHER  GOVERNMENTAL  APPROVAL  CONCERNING  THE  ACQUISITION,  HOLDING  OR
DISPOSITION  OF  REAL  OR  PERSONAL  PROPERTY, (D) FEES OR OTHER SUMS PAYABLE TO
TRUSTEES,  OFFICERS,  AGENTS  OR  EMPLOYEES  OF  A  TRUST, (E) THE ALLOCATION OF
RECEIPTS  AND  EXPENDITURES  TO  INCOME  OR  PRINCIPAL,  (F)  RESTRICTIONS  OR
LIMITATIONS  ON  THE  PERMISSIBLE  NATURE,  AMOUNT  OR  CONCENTRATION  OF  TRUST
INVESTMENTS  OR REQUIREMENTS RELATING TO THE TITLING, STORAGE OR OTHER MANNER OF
HOLDING OR INVESTING TRUST ASSETS OR (G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER
STANDARDS  OF  RESPONSIBILITY  OR  LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES

                                       57
<PAGE>
THAT  ARE  INCONSISTENT  WITH  THE LIMITATIONS OR LIABILITIES OR AUTHORITIES AND
POWERS OF THE ISSUER TRUSTEES OR THE ADMINISTRATOR AS SET FORTH OR REFERENCED IN
THIS  TRUST  AGREEMENT.  SECTION 3540 OF TITLE 12 OF THE DELAWARE CODE SHALL NOT
APPLY  TO  THE  ISSUER  TRUST.

          SECTION  10.5.  PAYMENTS  DUE  ON  NON-BUSINESS  DAY.

          If the date fixed for any payment on any Trust Security shall be a day
that  is not a Business Day, then such payment need not be made on such date but
may  be  made  on the next succeeding day that is a Business Day except that, if
such Business Day is in the next succeeding calendar year, such payment shall be
made  on  the  immediately  preceding  Business Day, in each case, with the same
force  and  effect  as  though  made  on the date fixed for such payment, and no
Distributions  or interest shall accumulate on such unpaid amount for the period
after  such  date.

          SECTION  10.6.  SUCCESSORS.

          This  Trust  Agreement  shall  be  binding upon and shall inure to the
benefit  of any successor to the Depositor, the Issuer Trust, the Administrators
and  any Issuer Trustee, including any successor by operation of law.  Except in
connection  with a consolidation, merger or sale involving the Depositor that is
permitted under Article VIII of the Indenture and pursuant to which the assignee
agrees  in  writing  to  perform  the  Depositor's  obligations  hereunder,  the
Depositor  shall  not  assign  its  obligations  hereunder.

          SECTION  10.7.  HEADINGS.

          The  Article  and  Section headings are for convenience only and shall
not  affect  the  construction  of  this  Trust  Agreement.

          SECTION  10.8.  REPORTS,  NOTICES  AND  DEMANDS.

          Any  report,  notice,  demand  or  other  communication  that  by  any
provision of this Trust Agreement is required or permitted to be given or served
to  or  upon  any  Holder  or the Depositor may be given or served in writing by
deposit  thereof,  first  class postage prepaid, in the United States mail, hand
delivery  or facsimile transmission, in each case, addressed, (a) in the case of
a Holder of Capital Securities, to such Holder as such Holder's name and address
may  appear  on  the  Securities  Register; and (b) in the case of the Holder of
Common  Securities or the Depositor, to Peoples Bancorp of North Carolina, Inc.,
518  West  C  Street,  Newton, North Carolina  28658, Attention:  Tony W. Wolfe,
facsimile  no.: (828) 465-6780 or to such other address as may be specified in a
written notice by the Depositor to the Property Trustee.  Such notice, demand or
other  communication  to  or  upon  a  Holder  shall  be  deemed  to  have  been
sufficiently  given  or  made,  for all purposes, upon hand delivery, mailing or
transmission.  Such  notice,  demand  or  other  communication  to  or  upon the
Depositor  shall  be  deemed  to  have been sufficiently given or made only upon
actual  receipt  of  the  writing  by  the  Depositor.

          Any  notice,  demand  or other communication which by any provision of
this  Trust  Agreement is required or permitted to be given or served to or upon

                                       58
<PAGE>
the  Issuer  Trust,  the  Property  Trustee,  the  Delaware  Trustee,  the
Administrators,  or  the Issuer Trust shall be given in writing addressed (until
another  address is published by the Issuer Trust) as follows:  (a) with respect
to  the  Property Trustee to Wilmington Trust Company, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention:  Corporate Trust Administration; (b)
with  respect  to  the Delaware Trustee to 1100 North Market Street, Wilmington,
Delaware  19890-0001,  Attention:  Corporate  Trust Administration; and (c) with
respect  to  the Administrators, to them at the address above for notices to the
Depositor,  marked  "Attention:  PEBK  Capital  Trust  I  Administrators."  Such
notice,  demand  or  other  communication  to  or  upon  the Issuer Trust or the
Property  Trustee  shall  be deemed to have been sufficiently given or made only
upon actual receipt of the writing by the Issuer Trust, the Property Trustee, or
such  Administrator.

          SECTION  10.9.  AGREEMENT  NOT  TO  PETITION.

          Each  of  the  Issuer  Trustees,  the Administrators and the Depositor
agree  for  the benefit of the Holders that, until at least one year and one day
after  the  Issuer Trust has been terminated in accordance with Article IX, they
shall  not  file,  or join in the filing of, a petition against the Issuer Trust
under  any  bankruptcy,  insolvency,  reorganization  or  other  similar  law
(including,  without  limitation,  the  United  States  Bankruptcy  Code)
(collectively,  "Bankruptcy  Laws") or otherwise join in the commencement of any
                 ----------------
proceeding  against the Issuer Trust under any Bankruptcy Law.  In the event the
Depositor  takes  action in violation of this Section 10.9, the Property Trustee
agrees,  for  the  benefit  of Holders, that at the expense of the Depositor, it
shall  file  an  answer  with  the  bankruptcy court or other court or otherwise
properly contest the filing of such petition by the Depositor against the Issuer
Trust  or  the  commencement  of  such  action  and  raise  the defense that the
Depositor  has  agreed in writing not to take such action and should be estopped
and  precluded  therefrom  and  such  other defenses, if any, as counsel for the
Issuer  Trustee  or  the  Issuer  Trust  may  assert.  If  any Issuer Trustee or
Administrator  takes  action  in  violation  of this Section 10.9, the Depositor
agrees, for the benefit of the Holders, that at the expense of the Depositor, it
shall file an answer with the bankruptcy court or otherwise properly contest the
filing of such petition by such Person against the Depositor or the commencement
of  such action and raise the defense that such Person has agreed in writing not
to  take  such  action  and  should be estopped and precluded therefrom and such
other  defenses,  if  any, as counsel for the Issuer Trustee or the Issuer Trust
may  assert.  The  provisions of this Section 10.9 shall survive the termination
of  this  Trust  Agreement.

          SECTION  10.10.  TRUST  INDENTURE  ACT;  CONFLICT WITH TRUST INDENTURE
ACT.

          (a)     Trust Indenture Act; Application.  (i) This Trust Agreement is
subject  to  the provisions of the Trust Indenture Act that are required to be a
part of this Trust Agreement and shall, to the extent applicable, be governed by
such  provisions;  (ii)  if  and  to the extent that any provision of this Trust
Agreement limits, qualifies or conflicts with the duties imposed by Sections 310
to  317,  inclusive,  of  the  Trust  Indenture  Act,  such imposed duties shall
control;  (iii)  for  purposes of this Trust Agreement, the Property Trustee, to
the  extent  permitted by applicable law and/or the rules and regulations of the
Commission, shall be the only Issuer Trustee which is a trustee for the purposes
of  the Trust Indenture Act; and (iv) the application of the Trust Indenture Act
to  this  Trust  Agreement shall not affect the nature of the Capital Securities

                                       59
<PAGE>
and the Common Securities as equity securities representing undivided beneficial
interests  in  the  assets  of  the  Issuer  Trust.

          (b)     Lists  of  Holders  of  Capital  Securities.  (i)  Each of the
Depositor  and  the  Administrators  on  behalf  of  the Trust shall provide the
Property  Trustee  with  such information as is required under Section 312(a) of
the  Trust  Indenture  Act  at  the  times and in the manner provided in Section
312(a)  and  (ii)  the  Property Trustee shall comply with its obligations under
Sections  310(b),  311  and  312(b)  of  the  Trust  Indenture  Act.

          (c)     Reports by the Property Trustee.  Within 60 days after January
31  of each year commencing January 31, 2002, the Property Trustee shall provide
to  the  Holders of the Trust Securities such reports as are required by Section
313  of  the  Trust Indenture Act, if any, in the form, in the manner and at the
times  provided by Section 313 of the Trust Indenture Act.  The Property Trustee
shall also comply with the requirements of Section 313(d) of the Trust Indenture
Act.

          (d)     Periodic  Reports  to Property Trustee.  Each of the Depositor
and  the  Administrators  on  behalf  of  the  Issuer Trust shall provide to the
Property  Trustee,  the  Commission  and the Holders of the Trust Securities, as
applicable,  such  documents,  reports  and  information  as  may be required by
Section  315(a)(1)  - (3) (if any) of the Trust Indenture Act and the compliance
certificates  required  by  Section 314(a)(4) and (c) of the Trust Indenture Act
(provided  that  any certificate to be provided pursuant to Section 314(a)(4) of
the  Trust  Indenture  Act  shall be provided within 120 days of the end of each
fiscal  year  of  the  Issuer  Trust).

          (e)     Evidence of Compliance with Conditions Precedent.  Each of the
Depositor  and the Administrators on behalf of the Issuer Trust shall provide to
the  Property Trustee such evidence of compliance with any conditions precedent,
if  any, provided for in this Trust Agreement which 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  pursuant  to  Section 314(c) shall comply with
Section  314(e)  of  the  Trust  Indenture  Act.

          (f)     Disclosure  Information.  The  disclosure of information as to
the  names  and  addresses of the Holders of Trust 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  Property  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  10.11.  ACCEPTANCE OF TERMS OF TRUST AGREEMENT, GUARANTEE AND
INDENTURE.

          THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST THEREIN
BY  OR  ON  BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR
FURTHER  MANIFESTATION OF ASSENT,  SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE
BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN SUCH TRUST SECURITY

                                       60
<PAGE>
OF  ALL  THE  TERMS  AND  PROVISIONS  OF THIS TRUST AGREEMENT, THE GUARANTEE THE
INDENTURE,  AND AGREEMENT TO THE SUBORDINATION PROVISIONS AND OTHER TERMS OF THE
GUARANTEE  AND  THE  INDENTURE, AND SHALL CONSTITUTE THE AGREEMENT OF THE ISSUER
TRUST,  SUCH  HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS OF THIS TRUST
AGREEMENT  SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE ISSUER TRUST
AND  SUCH  HOLDER  AND  SUCH  OTHERS.

                                     * * * *

          This instrument may be executed in any number of counterparts, each of
which  so  executed shall be deemed to be an original, but all such counterparts
shall  together  constitute  but  one  and  the  same  instrument.

                            [SIGNATURES ON NEXT PAGE]

                                       61
<PAGE>
          IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Trust
Agreement to be duly executed, all as of the day and year first above written.

                         PEOPLES BANCORP OF NORTH CAROLINA, INC.,
                         as  Depositor

                         By:  /s/  Tony  W.  Wolfe
                             -------------------------------------------
                         Name:     Tony  W.  Wolfe
                         Title:    President and Chief Executive Officer

                         WILMINGTON  TRUST  COMPANY,
                         as Property Trustee, and not in its individual capacity

                         By: /s/  Anita Dallago
                             -------------------------------------------
                         Name:    Anita Dallago
                         Title:   Financial Services Officer

                         WILMINGTON  TRUST  COMPANY,
                         as Delaware Trustee, and not in its individual capacity

                         By:  /s/  Anita Dallago
                             -------------------------------------------
                         Name:     Anita Dallago
                         Title:    Financial Services Officer

                         By:  /s/  Tony  W.  Wolfe
                             -------------------------------------------
                         Name:     Tony  W.  Wolfe
                         Title:    Administrator

                         By:  /s/  Joseph  F.  Beaman, Jr.
                             -------------------------------------------
                         Name:     Joseph  F.  Beaman
                         Title:    Administrator

                         By:  /s/  A.  Joseph  Lampron
                             -------------------------------------------
                         Name:     A.  Joseph  Lampron
                         Title:    Administrator

                                       62
<PAGE>
                                    EXHIBIT A

                              CERTIFICATE OF TRUST
                                       OF
                              PEBK CAPITAL TRUST I

<PAGE>
                                    EXHIBIT B

                        RESTRICTED SECURITIES CERTIFICATE

                     (FOR TRANSFERS PURSUANT TO SEC. 5.5(B)
                             OF THE TRUST AGREEMENT)

Wilmington  Trust  Company,
as  Security  Registrar
1100  North  Market  Street
Wilmington,  Delaware  19890-0001
Attention:    Corporate Trust Administration

          Re:  Floating  Rate  Capital  Securities  ("Capital Securities")
                                                      -------
               of PEBK Capital Trust I (the "Trust")
                                             -----

          Reference  is  made to the Amended and Restated Trust Agreement, dated
as of December ___, 2001 (the "Trust Agreement"), among Peoples Bancorp of North
                               ---------------
Carolina,  Inc., as Depositor, Wilmington Trust Company, as Property Trustee and
as  Delaware  Trustee,  the  Administrators  named  therein, and the Holders (as
defined  therein) from time to time.  Terms used herein and defined in the Trust
Agreement  or  in  Regulation D, Rule 144A or Rule 144 under the U.S. Securities
Act  of  1933  (the  "Securities  Act")  are  used  herein  as  so  defined.
                      ---------------

          This  certificate  relates to $__________ aggregate Liquidation Amount
of  Capital Securities, which are evidenced by the following certificate(s) (the
"Specified  Securities"):
 ---------------------

          CUSIP  No(s).  _________________________

          CERTIFICATE  No(s).  ___________________

          CURRENTLY IN BOOK-ENTRY FORM:  ___Yes  ____No  (check one)

          The  person  in  whose  name  this  certificate is executed below (the
"Undersigned")  hereby certifies that either (i) it is the sole beneficial owner
 -----------
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners  of  the  Specified  Securities  and is duly authorized by them to do so.
Such  beneficial  owner  or  owners  are  referred to herein collectively as the
"Owner."  If  the  Specified  Securities  are  represented  by  a Global Capital
Securities  Certificate, they are held through the Clearing Agency or a Clearing
Agency Participant in the name of the Undersigned, as or on behalf of the Owner.
If  the  Specified Securities are not represented by a Global Capital Securities
Certificate, they are registered in the name of the Undersigned, as or on behalf
of  the  Owner.

          The  Owner  has requested that the Specified Securities be transferred
to  a  person  (the  "Transferee")  who  will  take  delivery  in  the form of a
                      ----------

<PAGE>
Restricted Capital Security.  In connection with such transfer, the Owner hereby
certifies  that, unless such transfer is being effected pursuant to an effective
registration  statement  under  the  Securities  Act,  it  is  being effected in
accordance  with  Rule  144A,  Rule  904 or Rule 144 under the Securities Act or
other  exemption  from registration under the Securities Act, and all applicable
securities  laws  of  the  states  of the United States and other jurisdictions.
Accordingly,  the  Owner  hereby  further  certifies  as  follows:

     1.     RULE 144A TRANSFERS. If the transfer is being effected in accordance
with  Rule  144A:

          (A)     the  Specified  Securities  are  being transferred to a person
that  the  Owner  and  any  person  acting on its behalf reasonably believe is a
"qualified  institutional  buyer" within the meaning of Rule 144A, acquiring for
its  own  account  or  for  the  account of a qualified institutional buyer; and

          (B)     the  Owner  and  any  person  acting  on its behalf have taken
reasonable  steps  to  ensure that the Transferee is aware that the Owner may be
relying  on  Rule  144A  in  connection  with  the  transfer.

     2.     RULE 904 TRANSFERS.  If the transfer is being effected in accordance
with  Rule  904:

          (A)     the  Owner  is not a distributor of the Capital Securities, an
affiliate  of  the  Depositor  or  the Trust or any such distributor or a person
acting  on  behalf  of  any  of  the  foregoing;

          (B)     the offer of the Specified Securities was not made to a person
in  the  United  States;

          (C)     either:

               (i)  at the time the buy order was originated, the Transferee was
                    outside the United States or the Owner and any person acting
                    on  its  behalf  reasonably believed that the Transferee was
                    outside  the  United  States,  or

               (ii) the  transaction  is  being  executed  in, on or through the
                    facilities  of  the  Eurobond  market,  as  regulated by the
                    Association  of  International  Bond  Dealers,  or  another
                    designated  offshore securities market and neither the Owner
                    nor  any  person  acting  on  its  behalf  knows  that  the
                    transaction  has been prearranged with a buyer in the United
                    States;

          (D)     no  directed selling efforts within the meaning of Rule 902 of
Regulation S have been made in the United States by or on behalf of the Owner or
any  affiliate  thereof;  and

                                        2
<PAGE>
          (E)     the  transaction  is not part of a plan or scheme to evade the
registration  requirements  of  the  Securities  Act.

     3.     RULE  144  TRANSFERS.  If the transfer is being effected pursuant to
Rule  144:

          (A)     the  transfer  is occurring after a holding period of at least
one  year (computed in accordance with paragraph (d) of Rule 144 or such shorter
time  as  may  be  provided  therein)  has  elapsed since the date the Specified
Securities  were  acquired  from the Depositor or the Trust or from an affiliate
(as  such  term  is defined in Rule 144) of the Depositor or the Trust, with the
full  amount  of  the  purchase price paid at the date of purchase, whichever is
later, and is being effected in accordance with the applicable amount, manner of
sale and notice requirements of paragraphs (c), (e), (f) and (h) of Rule 144; or

          (B)     the  transfer  is occurring after a holding period of at least
two  years  (or  such shorter time as may be provided in Rule 144(k) has elapsed
since  the date the Specified Securities were acquired from the Depositor or the
Trust  or  from  an  affiliate  (as  such  term  is  defined in Rule 144) of the
Depositor  or  the Trust, with the full amount of the purchase price paid at the
date  of  purchase,  whichever  is  later,  and the Owner is not, and during the
preceding three months has not been, an affiliate of the Depositor or the Trust.

     4.     OTHER  TRANSFERS.  If the Owner seeks to make a transfer in reliance
on any other exemption under the Securities Act, it shall attach hereto a letter
stating  the  exemption  relied upon and the facts under which such exemption is
available  for  the  requested  transfer, and shall attach an opinion of counsel
satisfactory  to  the  Depositor stating that such exemption is available and is
being  properly  used.

          This certificate and the statements contained herein are made for your
benefit  and  the  benefit  of  the  Depositor,  the  Trust  and  the  Holders.

Dated:________________        __________________________________________________
                              (Print  the  name of the Undersigned, as such term
                              is  defined  in  the  second  paragraph  of  this
                              certificate.)

                              By: ______________________________________________
                              Name: ____________________________________________
                              Title: ___________________________________________

                              (If the Undersigned is a corporation, partnership,
                              fiduciary  or  entity,  the  correct  name  of the
                              entity,  and  the  name  and  title  of the person
                              signing  on  behalf  of  the  Undersigned  must be
                              stated.)

                                        3
<PAGE>
                                    EXHIBIT C

                      FORM OF COMMON SECURITIES CERTIFICATE

<PAGE>
                                    EXHIBIT D

                     FORM OF CAPITAL SECURITIES CERTIFICATE

<PAGE>
                                    EXHIBIT E

                           FORM OF PLACEMENT AGREEMENT

<PAGE>

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<mimedata>

                               GUARANTEE AGREEMENT

                                     BETWEEN

                     PEOPLES BANCORP OF NORTH CAROLINA, INC.
                                  AS GUARANTOR,

                                       AND

                            WILMINGTON TRUST COMPANY
                              AS GUARANTEE TRUSTEE,

                          DATED AS OF DECEMBER 19, 2001

<PAGE>
                              PEBK CAPITAL TRUST I

            CERTAIN SECTIONS OF THIS GUARANTEE AGREEMENT RELATING TO
                         SECTIONS 310 THROUGH 318 OF THE
                          TRUST INDENTURE ACT OF 1939:

TRUST INDENTURE                                             GUARANTEE AGREEMENT
  ACT SECTION                                                     SECTION
---------------                                            ---------------------

Section 310  (a) (1) . . . . . . . . . . . . . . . . . . . . . .  4.1 (a)
             (a) (2) . . . . . . . . . . . . . . . . . . . . . .  4.1 (a)
             (a) (3) . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
             (a) (4) . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  2.8, 4.1 (c)
Section 311  (a) . . . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
Section 312  (a) . . . . . . . . . . . . . . . . . . . . . . . .  2.2 (a)
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  2.2 (b)
             (c) . . . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
Section 313  (a) . . . . . . . . . . . . . . . . . . . . . . . .  2.3
             (a) (4) . . . . . . . . . . . . . . . . . . . . . .  2.3
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  2.3
             (c) . . . . . . . . . . . . . . . . . . . . . . . .  2.3
             (d) . . . . . . . . . . . . . . . . . . . . . . . .  2.3
Section 314  (a) . . . . . . . . . . . . . . . . . . . . . . . .  2.4
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  2.4
             (c) (1) . . . . . . . . . . . . . . . . . . . . . .  2.5
             (c) (2) . . . . . . . . . . . . . . . . . . . . . .  2.5
             (c) (3) . . . . . . . . . . . . . . . . . . . . . .  2.5
             (e) . . . . . . . . . . . . . . . . . . . . . . . .  1.1, 2.5, 3.2
Section 315  (a) . . . . . . . . . . . . . . . . . . . . . . . .  3.1 (d)
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  2.7
             (c) . . . . . . . . . . . . . . . . . . . . . . . .  3.1 (c)
             (d) . . . . . . . . . . . . . . . . . . . . . . . .  3.1 (d)
             (e) . . . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
Section 316  (a) . . . . . . . . . . . . . . . . . . . . . . . .  1.1, 2.6, 5.4
             (a) (1) (A) . . . . . . . . . . . . . . . . . . . .  5.4
             (a) (1) (B) . . . . . . . . . . . . . . . . . . . .  5.4
             (a) (2) . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  5.3
             (c) . . . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
Section 317  (a) (1) . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
             (a) (2) . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
             (b) . . . . . . . . . . . . . . . . . . . . . . . .  Not Applicable
Section 318  (a) . . . . . . . . . . . . . . . . . . . . . . . .  2.1

Note:  This reconciliation and tie shall not, for any purpose, be deemed to be a
       part  of  the  Guarantee  Agreement.

                                      (i)
<PAGE>
                                TABLE OF CONTENTS
                                -----------------

ARTICLE I.      DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . .   1
SECTION 1.1.    Definitions. . . . . . . . . . . . . . . . . . . . . . . . .   1

ARTICLE II.     TRUST INDENTURE ACT. . . . . . . . . . . . . . . . . . . . .   4
SECTION 2.1.    Trust Indenture Act; Application . . . . . . . . . . . . . .   4
SECTION 2.2.    List of Holders. . . . . . . . . . . . . . . . . . . . . . .   5
SECTION 2.3.    Reports by the Guarantee Trustee . . . . . . . . . . . . . .   5
SECTION 2.4.    Periodic Reports to the Guarantee Trustee. . . . . . . . . .   5
SECTION 2.5.    Evidence of Compliance with Conditions Precedent . . . . . .   5
SECTION 2.6.    Events of Default; Waiver. . . . . . . . . . . . . . . . . .   6
SECTION 2.7.    Event of Default; Notice . . . . . . . . . . . . . . . . . .   6
SECTION 2.8.    Conflicting Interests. . . . . . . . . . . . . . . . . . . .   6

ARTICLE III.    POWERS, DUTIES AND RIGHTS OF THE
                GUARANTEE TRUSTEE. . . . . . . . . . . . . . . . . . . . . .   6
SECTION 3.1.    Powers and Duties of the Guarantee Trustee . . . . . . . . .   6
SECTION 3.2.    Certain Rights of Guarantee Trustee. . . . . . . . . . . . .   8
SECTION 3.3.    Indemnity. . . . . . . . . . . . . . . . . . . . . . . . . .   9
SECTION 3.4.    Expenses . . . . . . . . . . . . . . . . . . . . . . . . . .   9

ARTICLE IV.     GUARANTEE TRUSTEE. . . . . . . . . . . . . . . . . . . . . .  10
SECTION 4.1.    Guarantee Trustee; Eligibility . . . . . . . . . . . . . . .  10
SECTION 4.2.    Appointment, Removal and Resignation of the Guarantee
                Trustee. . . . . . . . . . . . . . . . . . . . . . . . . . .  10

ARTICLE V.      GUARANTEE. . . . . . . . . . . . . . . . . . . . . . . . . .  11
SECTION 5.1.    Guarantee. . . . . . . . . . . . . . . . . . . . . . . . . .  11
SECTION 5.2.    Waiver of Notice and Demand. . . . . . . . . . . . . . . . .  11
SECTION 5.3.    Obligations Not Affected . . . . . . . . . . . . . . . . . .  11
SECTION 5.4.    Rights of Holders. . . . . . . . . . . . . . . . . . . . . .  12
SECTION 5.5.    Guarantee of Payment . . . . . . . . . . . . . . . . . . . .  13
SECTION 5.6.    Subrogation. . . . . . . . . . . . . . . . . . . . . . . . .  13
SECTION 5.7.    Independent Obligations. . . . . . . . . . . . . . . . . . .  13

ARTICLE VI.     COVENANTS AND SUBORDINATION. . . . . . . . . . . . . . . . .  13
SECTION 6.1.    Subordination. . . . . . . . . . . . . . . . . . . . . . . .  13
SECTION 6.2.    Pari Passu Guarantees. . . . . . . . . . . . . . . . . . . .  13

ARTICLE VII.    TERMINATION. . . . . . . . . . . . . . . . . . . . . . . . .  14
SECTION 7.1.    Termination. . . . . . . . . . . . . . . . . . . . . . . . .  14

                                      (ii)
<PAGE>
ARTICLE VIII.   MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . .  14
SECTION 8.1.    Successors and Assigns . . . . . . . . . . . . . . . . . . .  14
SECTION 8.2.    Amendments . . . . . . . . . . . . . . . . . . . . . . . . .  14
SECTION 8.3.    Notices. . . . . . . . . . . . . . . . . . . . . . . . . . .  14
SECTION 8.4.    Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . .  16
SECTION 8.5.    Interpretation . . . . . . . . . . . . . . . . . . . . . . .  16
SECTION 8.6.    Governing Law. . . . . . . . . . . . . . . . . . . . . . . .  16
SECTION 8.7.    Counterparts . . . . . . . . . . . . . . . . . . . . . . . .  17

                                      (iii)
<PAGE>
                               GUARANTEE AGREEMENT

          THIS  GUARANTEE AGREEMENT,  dated as of December 19, 2001, is executed
and  delivered  by  PEOPLES  BANCORP  OF  NORTH CAROLINA, INC., a North Carolina
corporation (the "Guarantor"), having its principal office at 518 West C Street,
                  ---------
Newton,  North Carolina  28658, and WILMINGTON TRUST COMPANY, a Delaware banking
corporation,  as  trustee  (the  "Guarantee  Trustee"),  for  the benefit of the
                                  ------------------
Holders  (as  defined  herein)  from  time to time of the Capital Securities (as
defined  herein)  of  PEBK  CAPITAL TRUST I, a Delaware statutory business trust
(the  "Issuer  Trust").
       -------------

          Pursuant  to  an  Amended  and  Restated  Trust  Agreement (the "Trust
                                                                           -----
Agreement"),  dated  of  even  date  herewith,  among  Peoples  Bancorp of North
---------
Carolina, Inc., as Depositor, Wilmington Trust Company, as Property Trustee (the
"Property  Trustee"),  Wilmington  Trust  Company,  as  Delaware  Trustee  (the
 -----------------
"Delaware  Trustee",  and  together with the Property Trustee, collectively, the
 -----------------
"Issuer  Trustees"),  the Administrators named therein and the Holders from time
 ----------------
to time of undivided beneficial interests in the assets of the Issuer Trust, the
Issuer  Trust  is  issuing  up  to  $14,000,000 aggregate Liquidation Amount (as
defined  herein)  of  its  Floating  Rate  Capital  Securities  (the  "Capital
                                                                       -------
Securities"),  representing  preferred  undivided  beneficial  interests  in the
----------
assets  of  the  Issuer  Trust  and  having  the  terms  set  forth in the Trust
Agreement;

          The  Capital  Securities  will  be  issued by the Issuer Trust and the
proceeds  thereof,  together  with  the proceeds from the issuance of the Issuer
Trust's  Common  Securities  (the  "Common  Securities"),  representing  common
                                    ------------------
undivided  beneficial  interests  in  the  assets  of  the  Issuer  Trust of the
Guarantor,  will  be  used  to  purchase  the Junior Subordinated Debentures due
December  31, 2031 (the "Junior Subordinated Debentures") of the Guarantor which
                         ------------------------------
will  be  deposited with Wilmington Trust Company, as Property Trustee under the
Trust  Agreement,  as  trust  assets;  and

          As  an  inducement  to the Holders to purchase the Capital Securities,
the Guarantor is willing to irrevocably and unconditionally agree, to the extent
set  forth herein, to pay to the Holders of the Capital Securities the Guarantee
Payments (as defined herein) and to make certain other payments on the terms and
conditions  set  forth  herein.

          NOW,  THEREFORE,  in  consideration  of  the  purchase  of the Capital
Securities  by  each  Holder,  which  purchase the Guarantor hereby acknowledges
shall  benefit  the  Guarantor,  the  Guarantor,  intending  to be legally bound
hereby,  executes  and  delivers this Guarantee Agreement for the benefit of the
Holders  from  time  to  time  of  the  Capital  Securities.

                             ARTICLE I.  DEFINITIONS

     SECTION  1.1.          Definitions.

          As  used  in this Guarantee Agreement, the terms set forth below shall
have  the  following meanings.  Capitalized terms used but not otherwise defined

<PAGE>
herein  shall  have  the meanings assigned to such terms in the Trust Agreement.

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

          "Event  of Default" means (i) a default by the Guarantor in any of its
payment  obligations  under  this  Guarantee Agreement, or (ii) a default by the
Guarantor in any other obligation hereunder that remains unremedied for 30 days.

          "Guarantee  Agreement"  means  this  Guarantee Agreement, as modified,
amended  or  supplemented  from  time  to  time.

          "Guarantee  Payments"  means  the following payments or distributions,
without  duplication,  with respect to the Capital Securities, to the extent not
paid or made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid
Distributions  (as  defined  in  the Trust Agreement) required to be paid on the
Capital  Securities,  to  the  extent  the Issuer Trust shall have funds on hand
available  therefor at such time, (ii) the Redemption Price, with respect to the
Capital  Securities called for redemption by the Issuer Trust to the extent that
the  Issuer  Trust shall have funds on hand available therefor at such time, and
(iii)  upon  a  voluntary or involuntary dissolution, termination, winding-up or
liquidation  of  the Issuer Trust, unless the Junior Subordinated Debentures are
distributed  to  the Holders, the lesser of (a) the aggregate of the Liquidation
Amount  of  all  outstanding  Trust  Securities  and  all accumulated and unpaid
Distributions  to  the date of payment to the extent the Issuer Trust shall have
funds  on hand available to make such payment at such time and (b) the amount of
assets  of  the  Issuer Trust remaining available for distribution to Holders on
liquidation  of  the  Issuer  Trust  (in  either  case,  the  "Liquidation
Distribution").

          "Guarantee  Trustee" means Wilmington Trust Company, until a Successor
Guarantee  Trustee has been appointed and has accepted such appointment pursuant
to  the  terms  of  this  Guarantee  Agreement  and  thereafter  means each such
Successor  Guarantee  Trustee.

          "Guarantor" shall have the meaning specified in the first paragraph of
this  Guarantee  Agreement.

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

                                      -2-
<PAGE>
          "Indenture"  means  the  Junior  Subordinated Indenture, dated of even
date  herewith,  between  Peoples Bancorp of North Carolina, Inc. and Wilmington
Trust  Company,  as trustee, as it may be modified, amended or supplemented from
time  to  time.

          "Issuer Trust" shall have the meaning specified in the first paragraph
of  this  Guarantee  Agreement.

          "Like  Amount"  means  (a)  with  respect  to  a  redemption  of Trust
Securities,  Trust  Securities having a Liquidation Amount equal to that portion
of  the  principal  amount  of  Junior  Subordinated  Debentures  to  be
contemporaneously  redeemed  in  accordance with the Indenture, allocated to the
Common  Securities  and  to  the  Capital  Securities  based  upon  the relative
Liquidation  Amounts  of  such classes and (b) with respect to a distribution of
Junior Subordinated Debentures to Holders of Trust Securities in connection with
a dissolution or liquidation of the Issuer Trust, Junior Subordinated Debentures
having  a  principal  amount  equal  to  the  Liquidation  Amount  of  the Trust
Securities  of  the  Holder  to  whom  such  Junior  Subordinated Debentures are
distributed.

          "Liquidation Amount" means the stated amount of $50,000.00 per Capital
Security  and  $1,000.00  per  Common  Security.

          "Majority  in  Liquidation  Amount  of  the Capital Securities" means,
except  as  provided by the Trust Indenture Act, Capital Securities representing
more  than  50%  of  the  aggregate  Liquidation  Amount of all then outstanding
Capital  Securities  issued  by  the  Issuer  Trust.

          "Officers'  Certificate" means a certificate signed by the Chairman of
the  Board,  Vice  Chairman  of  the  Board, Chief Executive Officer, President,
Executive  Vice  President  or a Senior Vice President or Vice President, and by
the  Treasurer,  an Assistant Treasurer, the Secretary or an Assistant Secretary
of  the  Guarantor,  and  delivered  to  the  Guarantee  Trustee.  Any Officers'
Certificate  delivered  with  respect to compliance with a condition or covenant
provided  for  in  this  Guarantee  Agreement  shall  include:

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

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

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

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

                                      -3-
<PAGE>
          "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  Date"  means,  with respect to any Capital Security to be
redeemed,  the  date  fixed  for  such  redemption  by  or pursuant to the Trust
Agreement;  provided that each Debenture Redemption Date and the stated maturity
of  the  Junior  Subordinated  Debentures  shall be a Redemption Date for a Like
Amount  of  Capital  Securities,  including,  but  not  limited  to  any date of
redemption  pursuant  to  the  occurrence  of  any  Special  Event.

          "Redemption  Price"  shall  have  the  meaning  specified in the Trust
Agreement.

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

          "Senior  Indebtedness"  shall  have  the  meaning  specified  in  the
Indenture.

          "Successor  Guarantee  Trustee"  means  a  successor Guarantee Trustee
possessing  the  qualifications  to  act  as  Guarantee Trustee under Article IV
hereof.

          "Trust  Agreement"  has  the meaning specified in the recitals hereto.

          "Trust Indenture Act" means the Trust Indenture Act of 1939 (15 U.S.C.
Sec.Sec.  77aaa-77bbbb),  as  amended.

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

                        ARTICLE II.  TRUST INDENTURE ACT

     SECTION  2.1.          Trust  Indenture  Act;  Application.

          If  any  provision  hereof  limits,  qualifies  or  conflicts  with  a
provision  of  the  Trust  Indenture Act that is required under such Act to be a
part  of  and  govern  this  Guarantee  Agreement,  the  provision  of the Trust
Indenture  Act  shall  control.  If  any  provision  of this Guarantee Agreement
modifies  or  excludes  any  provision of the Trust Indenture Act that may be so
modified  or  excluded,  the  latter  provision shall be deemed to apply to this
Guarantee  Agreement  as  so  modified  or  excluded,  as  the  case  may  be.

                                      -4-
<PAGE>
     SECTION  2.2.          List  of  Holders.

          (a)     The  Guarantor  will  furnish  or cause to be furnished to the
Guarantee  Trustee  a  list  of  Holders  at  the  following  times:

               (i)  quarterly,  not  more  than  15  days  after the last day of
February,  May,  August  and November, in each year, a list, in such form as the
Guarantee  Trustee  may  reasonably  require,  of the names and addresses of the
Holders as of the last day of February, May, August and November, as applicable;
and

               (ii)  at such other times as the Guarantee Trustee may request in
writing,  within 30 days after the receipt by the Guarantor of any such request,
a  list  of similar form and content as of a date not more than 15 days prior to
the  time  such  list  is  furnished.

          (b)     The  Guarantee  Trustee  shall comply with the requirements of
Section  312(b)  of  the  Trust  Indenture  Act.

     SECTION  2.3.          Reports  by  the  Guarantee  Trustee.

     Not  later  than  January 31 of each year, commencing January 31, 2002, the
Guarantee  Trustee  shall  provide  to  the Holders such reports, if any, as are
required by Section 313 of the Trust Indenture Act in the form and in the manner
provided by Section 313 of the Trust Indenture Act.  If this Guarantee Agreement
shall  have  been qualified under the Trust Indenture Act, the Guarantee Trustee
shall also comply with the requirements of Section 313(d) of the Trust Indenture
Act.

     SECTION  2.4.          Periodic  Reports  to  the  Guarantee  Trustee.

     The  Guarantor  shall provide to the Guarantee Trustee and the Holders such
documents,  reports  and  information, if any, as required by Section 314 of the
Trust  Indenture  Act  and the compliance certificate required by Section 314 of
the Trust Indenture Act, in the form, in the manner and at the times required by
Section  314  of  the Trust Indenture Act, provided that such documents, reports
and  information shall be required to be provided to the Securities and Exchange
Commission  only if this Guarantee Agreement shall have been qualified under the
Trust  Indenture  Act.

     SECTION  2.5.          Evidence  of  Compliance  with Conditions Precedent.

     The  Guarantor  shall  provide  to  the  Guarantee Trustee such evidence of
compliance  with  such  conditions  precedent,  if  any,  provided  for  in this
Guarantee  Agreement  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.

                                      -5-
<PAGE>
     SECTION  2.6.     Events  of  Default;  Waiver.

     The  Holders  of a Majority in Liquidation Amount of the Capital Securities
may,  by vote, on behalf of the Holders, waive any past Event of Default and its
consequences.  Upon such waiver, any such Event of Default shall cease to exist,
and  any  Event of Default arising therefrom shall be deemed to have been cured,
for  every  purpose of this Guarantee Agreement, but no such waiver shall extend
to  any  subsequent  or  other  default  or Event of Default or impair any right
consequent  therefrom.

     SECTION  2.7.     Event  of  Default;  Notice.

     (a)     The Guarantee Trustee shall, within 90 days after the occurrence of
an  Event  of  Default,  transmit  by  mail, first class postage prepaid, to the
Holders,  notice of all Events of Default known to the Guarantee Trustee, unless
such  Events  of  Default  have  been  cured or waived before the giving of such
notice;  provided  that,  except  in  the  case of a default in the payment of a
Guarantee  Payment, the Guarantee Trustee shall be protected in withholding such
notice  if  and  so long as the Board of Directors, the executive committee or a
trust  committee  of  directors  and/or  Responsible  Officers  of the Guarantee
Trustee  in  good faith determines that the withholding of such notice is in the
interests  of  the  Holders.

     (b)     The  Guarantee Trustee shall not be deemed to have knowledge of any
Event of Default unless a Responsible Officer charged with the administration of
this  Guarantee  Agreement  shall  have received written notice of such Event of
Default.

     SECTION  2.8.     Conflicting  Interests.

     The  Trust  Agreement  shall be deemed to be specifically described in this
Guarantee  Agreement  for  the  purposes  of  clause  (i)  of  the first proviso
contained  in  Section  310(b)  of  the  Trust  Indenture  Act.

        ARTICLE III.  POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

     SECTION  3.1.     Powers  and  Duties  of  the  Guarantee  Trustee.

     (a)     This Guarantee Agreement shall be held by the Guarantee Trustee for
the  benefit  of  the Holders, and the Guarantee Trustee shall not transfer this
Guarantee  Agreement  to any Person except a Holder exercising his or her rights
pursuant to Section 5.4(iv) or to a Successor Guarantee Trustee on acceptance by
such  Successor  Guarantee  Trustee  of  its  appointment  to  act  as Successor
Guarantee  Trustee  hereunder.  The  right,  title and interest of the Guarantee
Trustee,  as such, hereunder shall automatically vest in any Successor Guarantee
Trustee,  upon acceptance by such Successor Guarantee Trustee of its appointment
hereunder, and such vesting and cessation of title shall be effective whether or
not  conveyancing  documents  have  been  executed and delivered pursuant to the
appointment  of  such  Successor  Guarantee  Trustee.

                                      -6-
<PAGE>
     (b)     If  an  Event  of  Default has  occurred  and  is  continuing,  the
Guarantee  Trustee shall enforce this Guarantee Agreement for the benefit of the
Holders.

     (c)     The  Guarantee  Trustee,  before  the  occurrence  of  any Event of
Default  and  after  the  cure  or waiver of all Events of Default that may have
occurred, shall be obligated to perform only such duties as are specifically set
forth  in  this  Guarantee Agreement (including pursuant to Section 2.1), and no
implied  covenants  shall  be  read  into  this  Guarantee Agreement against the
Guarantee Trustee.  If an Event of Default has occurred (that has not been cured
or waived pursuant to Section 2.6), the Guarantee Trustee shall exercise such of
the rights and powers vested in it by this Guarantee Agreement, 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  Agreement shall be construed to
relieve  the  Guarantee Trustee from liability for its own negligent action, its
own  negligent  failure  to  act  or  its  own  willful misconduct, except that:

          (i)  Prior  to  the  occurrence  of any Event of Default and after the
curing  or  waiving  of  all  such  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  Agreement
(including  pursuant  to  Section  2.1),  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  Agreement  (including pursuant to
Section  2.1);  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  Agreement;  but  in the case of any such
certificates  or opinions that by any provision hereof or of the Trust Indenture
Act  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  Agreement;

               (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  Capital Securities relating to the time, method and place of conducting
any  proceeding for any remedy available to the Guarantee Trustee, or exercising
any  trust  or  power  conferred upon the Guarantee Trustee under this Guarantee
Agreement;  and

                                      -7-
<PAGE>
               (iv)  No  provision of this Guarantee Agreement shall require the
Guarantee  Trustee  to  expend or risk its own funds or otherwise incur personal
financial  liability  in the performance of any of its duties or in the exercise
of  any  of  its rights or powers if the Guarantee Trustee shall have reasonable
grounds  for  believing  that  the  repayment  of such funds or liability is not
assured  to it under the terms of this Guarantee Agreement or adequate indemnity
against  such  risk  or  liability  is  not  reasonably  assured  to  it.

     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  reasonably  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  Agreement shall be sufficiently evidenced by an Officers' Certificate
unless  otherwise  prescribed  herein.

          (iii)  Whenever,  in  the  administration of this Guarantee Agreement,
the  Guarantee  Trustee  shall  deem  it  desirable  that  a matter be proved or
established  before  taking, suffering or omitting to take 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 from the Guarantee
Trustee,  shall  be  promptly  delivered  by  the  Guarantor.

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

          (v)  The  Guarantee  Trustee  shall be under no obligation to exercise
any  of  the  rights  or  powers vested in it by this Guarantee Agreement at the
request  or  direction  of any Holder, unless such Holder shall have provided to
the  Guarantee Trustee such security and indemnity as would satisfy a reasonable
person  in  the  position  of the Guarantee Trustee, against the costs, expenses
(including  attorneys' fees and expenses) 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.

          (vi)  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

                                      -8-
<PAGE>
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.

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

          (viii)  Whenever in the administration of this Guarantee Agreement the
Guarantee  Trustee  shall deem it desirable to receive instructions with respect
to  enforcing  any  remedy  or  right  or taking any other action hereunder, the
Guarantee Trustee (A) may request instructions from the Holders, (B) may refrain
from  enforcing  such  remedy  or  right  or taking such other action until such
instructions  are  received  and  (C)  shall  be  fully  protected  in acting in
accordance  with  such  instructions.

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

     SECTION  3.3.     Indemnity.

     The Guarantor agrees to indemnify the Guarantee Trustee (which for purposes
of this Section 3.3 shall include its officers, directors, employees and agents)
for,  and  to  hold it harmless against, any loss, liability or expense incurred
without negligence, willful misconduct or bad faith on the part of the Guarantee
Trustee,  arising  out of or in connection with the acceptance or administration
of  this  Guarantee  Agreement,  including  the  costs and expenses of defending
itself  against  any  claim  or  liability  in  connection  with the exercise or
performance  of  any  of  its powers or duties hereunder.  The Guarantee Trustee
will not claim or exact any lien or charge on any Guarantee Payments as a result
of  any amount due to it under this Guarantee Agreement.  The provisions of this
Section  3.3  shall  survive  the termination of this Guarantee Agreement or the
resignation  or  removal  of  the  Guarantee  Trustee.

     SECTION  3.4.     Expenses.

     The  Guarantor  shall from time to time reimburse the Guarantee Trustee for
its  expenses  and  costs  (including  reasonable  attorneys'  or  agents' fees)
incurred  in  connection  with  the  performance  of  its  duties  hereunder.

                                      -9-
<PAGE>
                         ARTICLE IV.  GUARANTEE TRUSTEE

     SECTION  4.1.     Guarantee  Trustee;  Eligibility.

     (a)     There  shall  at  all  times  be  a  Guarantee Trustee which shall:

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

          (ii)  be a Person that is eligible pursuant to the Trust Indenture Act
to  act  as such and has a combined capital and surplus of at least $50,000,000,
and  shall  be  a  corporation meeting the requirements of Section 310(a) of the
Trust  Indenture  Act.  If  such  corporation  publishes reports of condition at
least  annually,  pursuant  to  law or to the requirements of the supervising or
examining  authority,  then,  for the purposes of this Section and to the extent
permitted  by  the Trust Indenture Act, 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)     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.

     SECTION  4.2.     Appointment,  Removal  and  Resignation  of the Guarantee
Trustee.

          (a)     No  resignation  or  removal  of  the Guarantee Trustee and no
appointment  of  a  Successor  Guarantee  Trustee pursuant to this Article shall
become  effective until the acceptance of appointment by the Successor Guarantee
Trustee  by  written  instrument executed by the Successor Guarantee Trustee and
delivered  to  the  Holders  and  the  Guarantee  Trustee.

          (b)     Subject  to  the  immediately preceding paragraph, a Guarantee
Trustee  may resign at any time by giving written notice thereof to the Holders.
The  Guarantee  Trustee  shall  appoint  a successor by requesting from at least
three  Persons  meeting  the eligibility requirements such Persons' expenses and
charges  to  serve as the Guarantee Trustee, and selecting the Person who agrees
to  the  lowest  expenses  and  charges.  If the instrument of acceptance by the
Successor  Guarantee  Trustee  shall  not  have  been delivered to the Guarantee
Trustee  within  30  days  after  the  giving of such notice of resignation, the
Guarantee  Trustee  may  petition, at the expense of the Guarantor, any court of
competent  jurisdiction  for  the  appointment of a Successor Guarantee Trustee.

                                      -10-
<PAGE>
          (c)     The  Guarantee Trustee may be removed for cause at any time by
Act (within the meaning of Section 6.8 of the Trust Agreement) of the Holders of
at  least  a Majority in Liquidation Amount of the Capital Securities, delivered
to  the  Guarantee  Trustee.

          (d)     If  a  resigning  Guarantee  Trustee  shall  fail to appoint a
successor,  or  if  a  Guarantee Trustee shall be removed or become incapable of
acting  as Guarantee Trustee, or if any vacancy shall occur in the office of any
Guarantee  Trustee  for any cause, the Holders of the Capital Securities, by Act
of the Holders of record of not less than 25% in aggregate Liquidation Amount of
the  Capital  Securities  then  outstanding delivered to such Guarantee Trustee,
shall promptly appoint a successor Guarantee Trustee.  If no Successor Guarantee
Trustee  shall  have  been so appointed by the Holders of the Capital Securities
and such appointment accepted by the Successor Guarantee Trustee, any Holder, on
behalf  of  himself and all others similarly situated, may petition any court of
competent  jurisdiction  for  the  appointment of a Successor Guarantee Trustee.

                              ARTICLE V. 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  or  on behalf of the Issuer Trust), as and when due, regardless of any
defense,  right  of  set-off  or counterclaim which the Issuer Trust may have or
assert,  except  the  defense  of payment.  The Guarantor's obligation to make a
Guarantee  Payment may be satisfied by direct payment of the required amounts by
the  Guarantor to the Holders or by causing the Issuer Trust to pay such amounts
to the Holders.  The Guarantor shall give prompt written notice to the Guarantee
Trustee  in  the  event  it  makes  any  direct  payment  hereunder.

     SECTION  5.2.          Waiver  of  Notice  and  Demand.

          The  Guarantor  hereby  waives  notice  of acceptance of the Guarantee
Agreement  and  of  any liability to which it applies or may apply, presentment,
demand  for  payment,  any  right  to  require  a  proceeding  first against the
Guarantee  Trustee,  the  Issuer  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 Agreement shall in no way be affected or impaired by reason
of  the  happening  from  time  to  time  of  any  of  the  following:

                                      -11-
<PAGE>
          (a)     the  release  or  waiver, by operation of law or otherwise, of
the  performance  or  observance  by  the Issuer Trust of any express or implied
agreement,  covenant, term or condition relating to the Capital Securities to be
performed  or  observed  by  the  Issuer  Trust;

          (b)     the  extension  of time for the payment by the Issuer Trust of
all  or  any  portion  of the Distributions (other than an extension of time for
payment of Distributions that results from an election by the Depositor to defer
any interest payment on the Junior Subordinated Debentures as so provided in the
Indenture), Redemption Price, Liquidation Distribution or any other sums payable
under  the  terms  of  the  Capital  Securities or the extension of time for the
performance  of  any  other  obligation  under, arising out of, or in connection
with,  the  Capital  Securities;

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

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

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

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

          (g)     any  other  circumstance  whatsoever  that  might  otherwise
constitute  a legal or equitable discharge or defense of a guarantor (other than
payment  of  the underlying obligation), 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 Holders to give notice to, or
obtain the consent of, the Guarantor with respect to the happening of any of the
foregoing.

     SECTION  5.4.          Rights  of  Holders.

          The  Guarantor  expressly  acknowledges  that:  (i)  this  Guarantee
Agreement  will  be  deposited  with  the  Guarantee  Trustee to be held for the
benefit of the Holders; (ii) the Guarantee Trustee has the right to enforce this
Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in
Liquidation  Amount of the Capital Securities have the right to direct the time,
method  and  place  of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust
or  power  conferred  upon the Guarantee Trustee under this Guarantee Agreement;
and  (iv)  any  Holder  may  institute  a  legal proceeding directly against the
Guarantor  to  enforce  its rights under this Guarantee Agreement, without first

                                      -12-
<PAGE>
instituting  a  legal proceeding against the Guarantee Trustee, the Issuer Trust
or  any  other  Person.

     SECTION  5.5.          Guarantee  of  Payment.

          This  Guarantee  Agreement  creates  a guarantee of payment and not of
collection.  This  Guarantee  Agreement will not be discharged except by payment
of  the  Guarantee  Payments in full (without duplication of amounts theretofore
paid  by  the  Issuer  Trust)  or  upon  the distribution of Junior Subordinated
Debentures  to  Holders  as  provided  in  the  Trust  Agreement.

     SECTION  5.6.          Subrogation.

          The  Guarantor  shall  be  subrogated  to  all  rights (if any) of the
Holders  against  the Issuer Trust in respect of any amounts paid to the Holders
by  the  Guarantor  under  this Guarantee Agreement; provided, however, that the
Guarantor  shall  not  (except to the extent required by mandatory provisions of
law)  be  entitled to enforce or exercise any rights which 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 Agreement, if at the time of any
such payment, any amounts are due and unpaid under this Guarantee Agreement.  If
any  amount  shall  be  paid  to  the  Guarantor  in  violation of the preceding
sentence,  the Guarantor agrees to hold such amount in trust for the Holders and
to  pay  over  such  amount  to  the  Holders.

     SECTION  5.7.          Independent  Obligations.

          The  Guarantor  acknowledges  that  its  obligations  hereunder  are
independent  of  the obligations of the Issuer Trust with respect to the Capital
Securities  and  that  the  Guarantor shall be liable as principal and as debtor
hereunder  to  make  Guarantee  Payments pursuant to the terms of this Guarantee
Agreement notwithstanding the occurrence of any event referred to in subsections
(a)  through  (g),  inclusive,  of  Section  5.3  hereof.

                    ARTICLE VI.  COVENANTS AND SUBORDINATION

     SECTION  6.1.          Subordination.

          This  Guarantee  Agreement  will constitute an unsecured obligation of
the  Guarantor  and  will rank subordinate and junior in right of payment to all
Senior  Indebtedness  (as defined in the Indenture) of the Guarantor to the same
extent  and  in  the  same manner set forth in the Indenture with respect to the
Junior  Subordinated  Debentures,  and  the  provisions  of  Article XIII of the
Indenture  will  apply,  mutatis  mutandis,  to the obligations of the Guarantor
hereunder.  The  obligations of the Guarantor hereunder do not constitute Senior
Indebtedness  of  the  Guarantor.

     SECTION  6.2.          Pari  Passu  Guarantees.

                                      -13-
<PAGE>
          The  obligations of the Guarantor under this Guarantee Agreement shall
rank pari passu with any similar guarantee agreements issued by the Guarantor on
behalf  of  the  holders of Trust Securities issued by the Issuer Trust and with
any  other  security,  guarantee or other obligation that is expressly stated to
rank  pari  passu  with  the  obligations  of the Guarantor under this Guarantee
Agreement.

                            ARTICLE VII. TERMINATION

     SECTION  7.1.          Termination.

          This  Guarantee  Agreement  shall terminate and be of no further force
and  effect  upon  (i)  full  payment of the Redemption Price of all Outstanding
Capital  Securities,  (ii) the distribution of Junior Subordinated Debentures to
the  Holders  in exchange for all of the Outstanding Capital Securities or (iii)
full  payment  of the amounts payable in accordance with Article IX of the Trust
Agreement  upon liquidation of the Issuer Trust.  Notwithstanding the foregoing,
this Guarantee Agreement will continue to be effective or will be reinstated, as
the case may be, if at any time any Holder is required to restore payment of any
sums  paid  under  the  Capital  Securities  or  this  Guarantee  Agreement.

                          ARTICLE VIII. MISCELLANEOUS

     SECTION  8.1.          Successors  and  Assigns.

          All  guarantees  and  agreements contained in this Guarantee Agreement
shall  bind  the  successors,  assigns,  receivers,  conservators,  trustees and
representatives  of  the Guarantor and shall inure to the benefit of the Holders
of  the  Capital  Securities  then  outstanding.  Except  in  connection  with a
consolidation,  merger  or  sale involving the Guarantor that is permitted under
Article  VIII  of  the  Indenture  and  pursuant to which the assignee agrees in
writing  to  perform  the Guarantor's obligations hereunder, the Guarantor shall
not  assign  its obligations hereunder, and any purported assignment that is not
in  accordance  with  these  provisions  shall  be  void.

     SECTION  8.2.          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  Agreement  may  only  be amended with the prior
approval of the Holders of not less than a Majority in Liquidation Amount of the
Capital  Securities.  The  provisions  of  Article  VI  of  the  Trust Agreement
concerning  meetings  of the Holders shall apply to the giving of such approval.

     SECTION  8.3.          Notices.

          Any notice, request or other communication required or permitted to be
given  hereunder  shall  be  in  writing,  duly  signed by the party giving such

                                      -14-
<PAGE>
notice,  and  delivered,  telecopied  (confirmed by delivery of the original) or
mailed  by  first  class  mail  as  follows:

          (a)     if  given  to the Guarantor, to the address or telecopy number
set  forth below or such other address or telecopy number or to the attention of
such  other  Person  as  the  Guarantor  may  give  notice  to  the  Holders:

          Peoples  Bancorp  of  North  Carolina,  Inc.
          518  West  C  Street
          Newton,  North  Carolina  28658
          Facsimile  No.:  (828)  465-6780
          Attention:  Tony  W.  Wolfe

          (b)     if  given  to  the  Issuer  Trust,  in  care  of the Guarantee
Trustee,  at  the Issuer Trust's (and the Guarantee Trustee's) address set forth
below or such other address or telecopy number or to the attention of such other
Person as the Guarantee Trustee on behalf of the Issuer Trust may give notice to
the  Holders:

          PEBK  Capital  Trust  I
          518  West  C  Street
          Newton,  North  Carolina  28658
          Facsimile  No.:  (828)  465-6780
          Attention:  Tony  W.  Wolfe

          with  a  copy  to:

          Wilmington  Trust  Company
          1100  North  Market  Street
          Wilmington,  Delaware  19890-0001
          Facsimile  No.:  (302)  636-4140
          Attention:  Corporate  Trust  Administration

          (c)     if  given  to  the  Guarantee  Trustee:

          Wilmington  Trust  Company
          1100  North  Market  Street
          Wilmington,  Delaware  19890-0001
          Facsimile  No.:  (302)  636-4140
          Attention:  Corporate  Trust  Administration

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

                                      -15-
<PAGE>
          All notices hereunder shall be deemed to have been given when received
in  person,  telecopied  with  receipt confirmed, or mailed by first class mail,
postage  prepaid,  except that if a notice or other document is refused delivery
or  cannot  be  delivered  because  of  a changed address of which no notice was
given,  such  notice or other document shall be deemed to have been delivered on
the  date  of  such  refusal  or  inability  to  deliver.

     SECTION  8.4.          Benefit.

          This  Guarantee Agreement is solely for the benefit of the Holders and
is  not  separately  transferable  from  the  Capital  Securities.

     SECTION  8.5.          Interpretation.

          In  this  Guarantee  Agreement, unless the context otherwise requires:

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

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

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

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

          (e)     a term defined in the Trust Indenture Act has the same meaning
when used in this Guarantee Agreement unless otherwise defined in this Guarantee
Agreement  or  unless  the  context  otherwise  requires;

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

          (g)     the  masculine,  feminine  or neuter genders used herein shall
include  the  masculine,  feminine  and  neuter  genders.

     SECTION  8.6.          Governing  Law.

          THIS  GUARANTEE  AGREEMENT  SHALL  BE  GOVERNED  BY  AND CONSTRUED AND
INTERPRETED  IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO  THE  CONFLICT  OF  LAW  PRINCIPLES  THEREOF.

                                      -16-
<PAGE>
     SECTION  8.7.          Counterparts.

          This instrument may be executed in any number of counterparts, each of
which  so  executed shall be deemed to be an original, but all such counterparts
shall  together  constitute  but  one  and  the  same  instrument.

                            [SIGNATURES ON NEXT PAGE]

                                      -17-
<PAGE>
THIS GUARANTEE AGREEMENT is executed as of the day and year first above written.

                        PEOPLES BANCORP OF NORTH CAROLINA, INC., as Guarantor

                        By:  /s/ Tony  W.  Wolfe
                             -----------------------------------------
                        Name:    Tony  W.  Wolfe
                        Title:   President  and  Chief  Executive  Officer

                        WILMINGTON  TRUST  COMPANY,
                        as Guarantee Trustee, and not in its individual capacity

                        By:  /s/ Anita Dallago
                             -----------------------------------------
                        Name:    Anita Dallago
                             -----------------------------------------
                        Title:   Financial Services Officer
                             -----------------------------------------

                                      -18-
<PAGE>

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