Document:

Exhibit 10.11

 

CANTERBURY PARK HOLDING CORPORATION

 

EMPLOYEE STOCK PURCHASE PLAN

 

 

1.                  
Establishment of Plan. Canterbury Park Holding Corporation (hereinafter referred to
as the “Company”) proposes to grant to certain employees of the Company the opportunity to purchase common stock of
the Company. Such common stock shall be purchased pursuant to the plan herein set forth which shall be known as the “Canterbury
Park Holding Corporation Employee Stock Purchase Plan” (hereinafter referred to as the “Plan”). The Company intends
that the Plan shall qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of
1954, as amended, and shall be construed in a manner consistent with the requirements of said Section 423 and the regulations thereunder.

 

2.                  
Purpose. The Plan is intended to encourage stock ownership by all employees of the
Company and to provide them with further incentive to continue their employment, improve operations, increase profits, and contribute
more significantly to the Company’s success.

 

3.                  
Administration. The Plan shall be administered by a committee (hereinafter referred
to as the “Committee”) consisting of not less than three directors or employees of the Company (which shall be the
Compensation Committee if any is established by the Board of Directors), as designated by the Board of Directors of the Company
(hereinafter referred to as the “Board of Directors”). The Board of Directors shall fill all vacancies in the Committee
and may remove any member of the Committee at any time, with or without cause. The Committee shall select its own chairman and
hold its meetings at such times and places as it may determine. All determinations of the Committee shall be made by a majority
of its members. Any decision which is made in writing and signed by a majority of the members of the Committee shall be effective
as fully as though made by a majority vote at a meeting duly called and held. The determinations of the Committee shall be made
in accordance with its judgment as to the best interests of the Company, its employees and its shareholders and in accordance with
the purposes of the Plan; provided, however, that the provisions of the Plan shall at all times be construed in a
manner consistent with the requirements of Section 423 of the Internal Revenue Code, as amended. Such determinations shall be binding
upon the Company and the participants in the Plan unless otherwise determined by the Board of Directors. The Company shall pay
all expenses of administering the Plan. No member of the Board of Directors or the Committee shall be liable for any action or
determination made in good faith with respect to the Plan or any option granted under it.

 

4.                  
Duration and Phases of the Plan. (a) The Plan will commence on April 15, 1995 and will
terminate when all shares authorized for issuance under Paragraph 10 of this Plan, as it may be amended from time to time, are
issued or at such earlier date as shall be determined by the Company’s Board of Directors, except that any phase commenced
prior to such termination shall, if necessary, be allowed to continue beyond such termination until completion. Notwithstanding
the foregoing, this Plan shall be considered of no force or effect and any options granted shall be considered null and void unless
the holders of a majority of all of the issued and outstanding shares of the common stock of’ the Company approve the Plan
within twelve (12) months before or after the date of its adoption by the Board of Directors; and, further, any amendment of this
Plan to increase the number of shares authorized for issuance under Paragraph 10 of this Plan shall be considered of no force or
effect and any options granted thereafter shall be considered null and void unless the holders of a majority of all the issued
and outstanding shares of the common stock of the Company approve such amendment of the Plan within twelve (12) months after the
date Paragraph 10 is amended by the Board of Directors to increase the number of shares authorized for issuance.

 

    	 

    	 

    

 

(b)                
The Plan shall be carried out in one or more phases, each phase being for a period of one
year or such other period of time as may be determined by the Board or Committee. No phase shall run concurrently, but a phase
may commence immediately after the termination of the preceding phase. The existence and date of commencement of a phase (the “Commencement
Date”) shall be determined by the Committee, provided that the commencement of the first phase shall be within twelve (12)
months before or after the date of approval of the Plan by the shareholders of the Company. In the event all of the stock reserved
for grant of options hereunder is issued pursuant to the terms hereof prior to the commencement of one or more phases scheduled
by the Committee or the number of shares remaining is so small, in the opinion of the Committee, as to render administration of
any succeeding phase impracticable, such phase or phases shall be cancelled. Phases shall be numbered successively Phase 1, Phase
2, Phase 3, etc.

 

(c)                
The Board of Directors may elect to accelerate the termination date of any phase effective
on the date specified by the Board of Directors in the event of (i) any consolidation or merger of the Company in which the Company
is not the continuing or surviving corporation or pursuant to which shares would be converted into cash, securities or other property,
other than a merger of the Company in which shareholders immediately prior to the merger have the same proportionate ownership
of stock in the surviving corporation immediately after the merger; (ii) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets of the Company; or (iii) any plan of liquidation
or dissolution of the Company.

 

5.                  
Eligibility. All Employees, as defined in Paragraph 19 hereof, who are employed by
the Company at least one day prior to the Commencement Date of a phase shall be eligible to participate in such phase.

 

6.                  
Participation. Participation in the Plan is voluntary. An eligible Employee may elect
to participate in any phase of the Plan, and thereby become a “Participant” in the Plan, by completing the Plan payroll
deduction form provided by the Company and delivering it to the Company or its designated representative prior to the Commencement
Date of that phase. Payroll deductions for a Participant shall commence on the first payday after the Commencement Date of the
phase and shall terminate on the last payday immediately prior to or coinciding with the termination date of that phase unless
sooner terminated by the Participant as provided in Paragraph 9 hereof.

 

7.                  
Payroll Deductions. (a) Upon enrollment, a Participant shall elect to make contributions
to the Plan by payroll deductions (in full dollar amounts and in amounts calculated to be as uniform as practicable throughout
the period of the phase), in the aggregate amount not in excess of 10% of such Participant’s Base Pay for the term of the
phase, as determined according to Paragraph 19 hereof.

 

The minimum authorized payroll deduction must
aggregate to not less than $10 per month.

 

(b)                
In the event that the Participant’s compensation for any pay period is terminated or
reduced from the compensation rate for such a period as of the Commencement Date of the phase for any reason so that the amount
actually withheld on behalf of the Participant as of the termination date of the phase is less than the amount anticipated to be
withheld over the phase year as determined on the Commencement Date of the phase, then the extent to which the Participant may
exercise his option shall be based on the amount actually withheld on his behalf. In the event of a change in the pay period of
any Participant, such as from bi-weekly to monthly, an appropriate adjustment shall be made to the deduction in each new pay period
so as to ensure the deduction of the proper amount authorized by the Participant.

 

    	2

    	 

    

 

(c)                
All payroll deductions made for Participants shall be credited to their accounts under the
Plan. The Participant may not make any separate cash payments into such account.

 

(d)                
Except for his right to discontinue participation in the Plan as provided in Paragraph 9,
no Participant shall be entitled to increase or decrease the amount to be deducted in a given phase after the Commencement Date.

 

8.                  
Options.

 

(a)                
Grant of Option.

 

(i)                  
A Participant who is employed by the Company as of the Commencement Date of a phase shall,
subject to the limitations of Paragraph 10 hereof, be granted an option as of such date to purchase that number of full shares
of Company common stock to be determined by dividing the total amount to be credited to that Participant’s account under
Paragraph 7 hereof by (1) the option price set forth in Paragraph 8(a)(ii)(A) hereof with respect to phases ending on or prior
to October 1, 2005, or (2) ninety-five percent (95%) of the per share fair market value of such common stock on the Termination
Date of the phase with respect to phases beginning on or after October 1, 2005; provided that with respect to this clause
(2) in no event shall a Participant be permitted to purchase during a phase more than that number of shares which is equal to 30%
of the amount determined by dividing the total amount credited to the Participant’s account under Paragraph 7 hereof by 95%
of the fair market value per share of such common stock on the Commencement Date of such phase and rounding down to the nearest
whole number.

 

(ii)                
Unless otherwise determined by the Board or Committee prior to the commencement of a Phase,
the option price for such shares of common stock shall be the lower of:

 

		A.            	Eighty-five percent (85%) of the fair market value of such shares of common stock on the Commencement Date of the phase for phases ending on or prior to October 1, 2005 and ninety-five percent (95%) of the fair market of such common stock on the termination date for phases beginning on or after October 1, 2005; or
	 	B.	Eighty-five percent (85%) of the fair market value of such shares of common stock on the termination date of the phase for phases ending prior to October 1, 2005 and ninety-five (95%) of the fair market value if such shares of common stock on the termination date for phases beginning on or after October 1, 2005.

 

(iii)               
The fair market value of shares of common stock of the Company shall be determined by the
Committee for each valuation date in a manner acceptable under Section 423, Internal Revenue Code of 1954.

 

    	3

    	 

    

 

(iv)              
Anything herein to the contrary notwithstanding, no Employee shall be granted an option hereunder:

 

		A.            	Which permits his rights to purchase stock under all employee stock purchase plans of the Company, its subsidiaries or its parent, if any, to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of the fair market value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time;
	 	B.	If immediately after the grant such Employee would own and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, its parent, if any, or of any subsidiary of the Company.  For purposes of determining stock ownership under this Paragraph, the rules of Section 425(d) of the Internal Revenue Code, as amended, shall apply; or
	 	C.	Which can be exercised after the expiration of 27 months from the date the option is granted.

 

(b)                
Exercise of Option.

 

(i)                  
Unless a Participant gives written notice to the Company pursuant to Paragraph 8(b) (ii) or
Paragraph 9 prior to the termination date of a phase, his option for the purchase of shares will be exercised automatically for
him as of such termination date for the purchase of the number of full shares of Company common stock which the accumulated payroll
deductions in his account at that time will purchase at the applicable option price, subject to the limitations set forth in Paragraph
10 hereof.

 

(ii)                
A Participant may, by written notice to the Company at any time during the thirty (30) day
period immediately preceding the termination date of a phase, elect, effective as of the termination date of that phase, to exercise
his option for a specified number of full shares less than the maximum number which may be purchased under his option.

 

(iii)              
As promptly as practicable after the termination date of any phase, the Company will deliver
to each Participant herein the common stock purchased upon the exercise of his option, together with a cash payment equal to the
balance, if any, of his account which was not used for the purchase of common stock with interest accrued thereon.

 

9.                  
Withdrawal or Termination of Participation. (a) A Participant may, at any time prior
to the termination date of a phase, withdraw all payroll deductions then credited to his account by giving written notice to the
Company. Promptly upon receipt of such notice of withdrawal, all payroll deductions credited to the Participant’s account
will be paid to him with interest accrued thereon and no further payroll deductions will be made during that phase. In such event,
the option granted the Participant under that phase of the Plan shall lapse immediately. Partial withdrawals of payroll deductions
hereunder may not be made.

 

    	4

    	 

    

 

(b)                
In the event of the death of a Participant, the person or persons specified in Paragraph 14
may give notice to the Company within sixty (60) days of the death of the Participant electing to purchase the number of full shares
which the accumulated payroll deductions in the account of such deceased Participant will purchase at the option price specified
in Paragraph 8(a) (ii) and have the balance in the account distributed in cash with interest accrued thereon. If no such notice
is received by the Company within said sixty (60) days, the accumulated payroll deductions will be distributed in full in cash
with interest accrued thereon.

 

(c)                
Upon termination of Participant’s employment for any reason other than death of the
Participant, the payroll deductions credited to his account, plus interest, shall be returned to him.

 

10.               
Stock Reserved for Options. (a) Three Hundred Fifty Thousand (350,000) shares1
of the Company’s $.01 par value common stock are reserved for issuance upon the exercise of options to be granted under the
Plan. Shares subject to the unexercised portion of any lapsed or expired option may again be subject to option under the Plan.

 

(b)                
If the total number of shares of Company common stock for which options are to be granted
for a given phase as specified in Paragraph 8 exceeds the number of shares then remaining available under the Plan (after deduction
of all shares for which options have been exercised or are then outstanding) and if the Committee does not elect to cancel such
phase pursuant to Paragraph 4, the Committee shall make a pro rata allocation of the shares remaining available in as uniform and
equitable a manner as it shall consider practicable. In such event, the options to be granted and the payroll deductions to be
made pursuant to the Plan which would otherwise be effected may, in the discretion of the Committee, be reduced accordingly. The
Committee shall give written notice of such reduction to each Participant affected.

 

(c)                
The Participant (or a joint tenant named pursuant to Paragraph 10(d) hereof) shall have no
rights as a shareholder with respect to any shares subject to the Participant’s option until the date of the issuance of
a stock certificate evidencing such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate
is actually issued, except as otherwise provided in Paragraph 12 hereof.

 

(d)                
The shares of Company common stock to be delivered to a Participant pursuant to the exercise
of an option under the Plan will be registered in the name of the Participant or, if the Participant so directs by written notice
to the Committee prior to the termination date of that phase of the Plan, in the names of the Participant and one other person
the Participant may designate as his joint tenant with rights of survivorship, to the extent permitted by law.

 

11.               
Accounting and Use of Funds. Payroll deductions for each Participant shall be credited
to an account established for him under the Plan. A Participant may not make any separate cash payments into such account. Such
account shall be solely for bookkeeping purposes and no separate fund or trust shall be established hereunder and the Company shall
not be obligated to segregate such funds. All funds from payroll deductions received or held by the Company under the Plan may
be used, without limitation, for any corporate purpose by the Company.

 

____________________________

1
Increased from 100,000 shares to 250,000 shares approved by shareholders June 2001. Increase from to 250,000 shares to 350,000
shares approved by Board April 2006 and by the shareholders on June 1, 2006.

 

    	5

    	 

    

 

12.               
Adjustment Provision. (a) Subject to any required action by the shareholders of the
Company, the number of shares which are authorized in Section 10 to be issued pursuant to this Plan and the number of shares covered
by each outstanding option and the price per share thereof in each such option, shall be proportionately adjusted for any increase
or decrease in the number of issued shares of the Company common stock resulting from a subdivision or consolidation of shares
or the payment of a share dividend (but only on the shares) or any other increase or decrease in the number of such shares effected
without receipt of consideration by the Company.

 

(b)                
In the event of a change in the shares of the Company as presently constituted, which is limited
to a change of all its authorized shares with par value into the same number of shares with a different par value or without par
value, the shares resulting from any such change shall be deemed to be the shares within the meaning of this Plan.

 

13.               
Non-Transferability of Options. (a) Options granted under any phase of the Plan shall
not be transferable except under the laws of descent and distribution and shall be exercisable only by the Participant during his
lifetime and after his death only by his beneficiary of the representative of his estate as provided in Paragraph 9(b) hereof.

 

(b)                
Neither payroll deductions credited to a Participant’s account, nor any rights with
regard to the exercise of an option or to receive common stock under any phase of the Plan may be assigned, transferred, pledged
or otherwise disposed of in any way by the Participant. Any such attempted assignment, transfer, pledge or other disposition shall
be null and void and without effect, except that the Company may, at its option, treat such act as an election to withdraw funds
in accordance with Paragraph 9.

 

14.               
Designation of Beneficiary. A Participant may file a written designation of a beneficiary
who is to receive any cash to the Participant’s credit plus interest thereon under any phase of the Plan in the event of
such Participant’s death prior to exercise of his option pursuant to Paragraph 9(b) hereof, or to exercise his option and
become entitled to any stock and/or cash upon such exercise in the event of the Participant’s death prior to exercise of
the option pursuant to Paragraph 9(b) hereof. The beneficiary designation may be changed by the Participant at any time by written
notice to the Company.

 

Upon the death of a Participant and upon receipt
by the Company of proof deemed adequate by it of the identity and existence at the Participant’s death of a beneficiary validly
designated under the Plan, the Company shall in the event of the Participant’s death under the circumstances described in
Paragraph 9(b) hereof, allow such beneficiary to exercise the Participant’s option pursuant to Paragraph 9(b) if such beneficiary
is living on the termination date of the phase and deliver to such beneficiary the appropriate stock and/or cash after exercise
of the option. In the event there is no validly designated beneficiary under the Plan who is living at the time of the Participant’s
death under the circumstances described in Paragraph 9(b) or in the event the option lapses, the Company shall deliver the cash
credited to the account of the Participant with interest to the executor or administrator of the estate of the Participant, or
if no such executor or administrator has been appointed to the knowledge of the Company, it may, in its discretion, deliver such
cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is
known to the Company, then to such other person as the Company may designate. The Company will not be responsible for or be required
to give effect to the disposition of any cash or stock or the exercise of any option in accordance with any will or other testamentary
disposition made by such Participant or in accordance with the provision of any law concerning intestacy, or otherwise. No designated
beneficiary shall, prior to the death of a Participant by whom he has been designated, acquire any interest in any stock or in
any option or in the cash credited to the Participant under any phase of the Plan.

 

    	6

    	 

    

 

15.               
Amendment and Termination. The Plan may be terminated at any time by the Board of Directors
provided that, except as permitted in Paragraph 4(c) with respect to an acceleration of the termination date of any phase, no such
termination will take effect with respect to any options then outstanding. Also, the Board may, from time to time, amend the Plan
as it may deem proper and in the best interests of the Company or as may be necessary to comply with Section 423 of the Internal
Revenue Code of 1986, as amended, or other applicable laws or regulations; provided, however, that no such amendment shall, without
prior approval of the shareholders of the Company (1) increase the total number of shares for which options may be granted under
the Plan (except as provided in Paragraph 12 herein), (2) permit aggregate payroll deductions in excess of ten percent (10%) of
a Participant’s compensation as of the Commencement Date of a phase, or (3) impair any outstanding option.

 

16.               
Interest. In any situation where the Plan provides for the payment of interest on a
Participant’s payroll deductions, such interest shall be determined by averaging the month-end balances in the Participant’s
account for the period of his participation and computing interest thereon at the rate of five percent (5%) per annum.

 

17.               
Notices. All notices or other communications in connection with the Plan or any phase
thereof shall be in the form specified by the Committee and shall be deemed to have been duly given when received by the Participant
or his designated personal representative or beneficiary or by the Company or its designated representative, as the case may be.

 

18.               
Participation of Subsidiaries. The Board of Directors may, by written resolution, authorize
the employees of any of its subsidiaries to participate hereunder. Effective as of the date of coverage of any such subsidiary,
any references herein to the “Company” shall be interpreted as referring to such subsidiary as well as to Canterbury
Park Holding Corporation.

 

In the event that any subsidiary which is covered
under the Plan ceases to be a subsidiary of Canterbury Park Holding Corporation, the employees of such subsidiary shall be considered
to have terminated their employment for purposes of Paragraph 9 hereof as of the date such subsidiary ceases to be such a subsidiary.

 

19.               
Definitions. (a) “Subsidiary” shall include any corporation which shall
be deemed a subsidiary of the Company under Section 425(f) of the Internal Revenue Code of 1954, as amended.

 

(b)                
“Employee” shall mean any employee, including an officer, of the Company who as
of the first day of the month immediately preceding the Commencement Date of a phase is customarily employed by the Company for
more than fifteen (15) hours per week.

 

(c)                
“Base Pay” is the regular pay for employment for each employee as annualized for
a twelve (12) month period, exclusive of overtime, commissions, bonuses, disability payments, shift differentials, incentives and
other similar payments, determined as of the Commencement Date of each phase.

 

Adopted by Board of Directors: April 3, 1995

 

Amended in early 2001 by Board to increase authorized shares to
250,000, with shareholder approval of such amendment occurring in June 2001.

 

Amended August 2005 to conform to FAS 123R.

 

Amended in April 2006 by the Board to increase authorized shares
to 350,000, with shareholder approval of such amendment occurring June 1, 2006.

 

Amended in September 2011 to increase discretion assigned to the
Committee and to Company management in administration.

 

    	7Exhibit 10.3

	
  

 
	
 AMENDED AND RESTATED DECLARATION

 
	
  

 
	
 OF TRUST

 
	
  

 
	
 CVB STATUTORY TRUST NO. 2

 
	
  

 
	
 Dated as of June 28, 2006

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 I 

 INTERPRETATION AND DEFINITIONS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 1.1.

 	
  

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 II

 ORGANIZATION

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.1.

 	
  

 	
 Name

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.2.

 	
  

 	
 Office

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.3.

 	
  

 	
 Purpose

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.4.

 	
  

 	
 Authority

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.5.

 	
  

 	
 Title to Property of the
 Trust

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.6.

 	
  

 	
 Powers and Duties of the
 Trustees and the Administrators

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.7.

 	
  

 	
 Prohibition of Actions by
 the Trust and the Trustees

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.8.

 	
  

 	
 Powers and Duties of the
 Institutional Trustee

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.9.

 	
  

 	
 Certain Duties and
 Responsibilities of the Trustees and the 

 Administrators

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.10.

 	
  

 	
 Certain Rights of
 Institutional Trustee

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.11.

 	
  

 	
 Delaware Trustee

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.12.

 	
  

 	
 Execution of Documents

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.13.

 	
  

 	
 Not Responsible for
 Recitals or Issuance of Securities

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.14.

 	
  

 	
 Duration of Trust

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 2.15.

 	
  

 	
 Mergers

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 III 

 SPONSOR

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.1.

 	
  

 	
 Sponsor’s Purchase of
 Common Securities

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.2.

 	
  

 	
 Responsibilities of the
 Sponsor

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 IV 

 TRUSTEES AND ADMINISTRATORS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.1.

 	
  

 	
 Number of Trustees

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.2.

 	
  

 	
 Delaware Trustee

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.3.

 	
  

 	
 Institutional Trustee;
 Eligibility

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.4.

 	
  

 	
 Certain Qualifications of
 the Delaware Trustee Generally

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.5.

 	
  

 	
 Administrators

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.6.

 	
  

 	
 Initial Delaware Trustee

 	
  

 	
 26

 

-i-

TABLE OF CONTENTS 

(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 
	
 SECTION 4.7.

 	
  

 	
 Appointment, Removal and
 Resignation of the Trustees and the 

 Administrators

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.8.

 	
  

 	
 Vacancies Among Trustees

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.9.

 	
  

 	
 Effect of Vacancies

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.10.

 	
  

 	
 Meetings of the Trustees
 and the Administrators

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.11.

 	
  

 	
 Delegation of Power

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.12.

 	
  

 	
 Merger, Conversion,
 Consolidation or Succession to Business

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 V 

 DISTRIBUTIONS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 5.1.

 	
  

 	
 Distributions

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 VI

 ISSUANCE OF SECURITIES

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.1.

 	
  

 	
 General Provisions
 Regarding Securities

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.2.

 	
  

 	
 Paying Agent, Transfer
 Agent, Calculation Agent and Registrar

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.3.

 	
  

 	
 Form and Dating

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.4.

 	
  

 	
 Book-Entry Capital
 Securities

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.5.

 	
  

 	
 Mutilated, Destroyed, Lost
 or Stolen Certificates

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.6.

 	
  

 	
 Temporary Securities

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.7.

 	
  

 	
 Cancellation

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 6.8.

 	
  

 	
 Rights of Holders; Waivers
 of Past Defaults

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 VII

 DISSOLUTION AND TERMINATION OF TRUST

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 7.1.

 	
  

 	
 Dissolution and
 Termination of Trust

 	
  

 	
 36

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 VIII

 TRANSFER OF INTERESTS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.1.

 	
  

 	
 General

 	
  

 	
 37

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.2.

 	
  

 	
 Transfer Procedures and
 Restrictions

 	
  

 	
 38

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 8.3.

 	
  

 	
 Deemed Security Holders

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 IX

 LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.1.

 	
  

 	
 Liability

 	
  

 	
 41

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.2.

 	
  

 	
 Exculpation

 	
  

 	
 42

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.3.

 	
  

 	
 Fiduciary Duty

 	
  

 	
 42

 

ii

TABLE OF CONTENTS 
(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 
	
 SECTION 9.4.

 	
  

 	
 Indemnification

 	
  

 	
 43

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.5.

 	
  

 	
 Outside Businesses

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 9.6.

 	
  

 	
 Compensation; Fee

 	
  

 	
 46

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 X 

 ACCOUNTING

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.1.

 	
  

 	
 Fiscal Year

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.2.

 	
  

 	
 Certain Accounting Matters

 	
  

 	
 47

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.3.

 	
  

 	
 Banking

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 10.4.

 	
  

 	
 Withholding

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 XI 

 AMENDMENTS AND MEETINGS

 
	
 SECTION 11.1.

 	
  

 	
 Amendments

 	
  

 	
 48

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 11.2.

 	
  

 	
 Meetings of the Holders of
 the Securities; Action by Written 

 Consent

 	
  

 	
 50

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 XII

 REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 12.1.

 	
  

 	
 Representations and Warranties
 of Institutional Trustee

 	
  

 	
 52

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 12.2.

 	
  

 	
 Representations and
 Warranties of Delaware Trustee

 	
  

 	
 52

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 XIII 

 MISCELLANEOUS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.1.

 	
  

 	
 Notices

 	
  

 	
 53

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.2.

 	
  

 	
 Governing Law

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.3.

 	
  

 	
 Submission to Jurisdiction

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.4.

 	
  

 	
 Intention of the Parties

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.5.

 	
  

 	
 Headings

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.6.

 	
  

 	
 Successors and Assigns

 	
  

 	
 55

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.7.

 	
  

 	
 Partial Enforceability

 	
  

 	
 56

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 13.8.

 	
  

 	
 Counterparts

 	
  

 	
 56

 

iii

TABLE OF CONTENTS
(continued)

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ANNEXES AND
 EXHIBITS

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ANNEX I

 	
  

 	
 Terms of
 Capital Securities and Common Securities

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 EXHIBIT A-1

 	
  

 	
 Form of
 Capital Security Certificate

 	
  

 	
  

 
	
 EXHIBIT A-2

 	
  

 	
 Form of
 Common Security Certificate

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 

-iv-

AMENDED AND RESTATED DECLARATION OF TRUST

OF

CVB STATUTORY TRUST NO. 2

June 28, 2006

          AMENDED AND
RESTATED DECLARATION OF TRUST (this “Declaration”), dated and effective as of June
28, 2006, by the Trustees (as defined herein), the Administrators (as defined
herein), the Sponsor (as defined herein) and the holders from time to time of
undivided beneficial interests in the assets of the Trust (as defined herein)
to be issued pursuant to this Declaration.

          WHEREAS,
certain of the Trustees, the Administrators and the Sponsor established CVB
Statutory Trust No. 2 (the “Trust”), a statutory trust under the Statutory
Trust Act (as defined herein), pursuant to a Declaration of Trust, dated as of June
26, 2006 (the “Original Declaration”), and a Certificate of Trust filed with
the Secretary of State of the State of Delaware on June 26, 2006, for the sole
purpose of issuing and selling certain securities representing undivided
beneficial interests in the assets of the Trust and investing the proceeds
thereof in the Debentures (as defined herein) of the Debenture Issuer (as
defined herein) in connection with the issuance of the Capital Securities (as
defined herein);

          WHEREAS, as
of the date hereof, no interests in the assets of the Trust have been issued;
and

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

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

ARTICLE I

INTERPRETATION AND DEFINITIONS

          SECTION
1.1. Definitions. Unless the context otherwise requires:

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

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

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

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

                    (e)     a
term defined in the Trust Indenture Act (as defined herein) has the same
meaning when used in this Declaration unless otherwise defined in this
Declaration or unless the context otherwise requires; and

                    (f)     a
reference to the singular includes the plural and vice versa.

          “Additional
Interest” has the meaning set forth in Section 3.06 of the Indenture.

          “Administrative
Action” has the meaning set forth in paragraph 4(a) of Annex I.

          “Administrators”
means each of Larry J. Miller and Jann A. Weaver, solely in such Person’s
capacity as Administrator of the Trust continued hereunder and not in such
Person’s individual capacity, or such Administrator’s successor in interest in
such capacity, or any successor appointed as herein provided.

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

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

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

          “Bankruptcy
Event” means, with respect to any Person:

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

                    (b)     such
Person commences a voluntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect, consents to the entry of an
order for relief in an involuntary case under any such law, or consents to the
appointment of or

-2-

taking possession by a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of such Person of
any substantial part of its property, or makes any general assignment for the
benefit of creditors, or fails generally to pay its debts as they become due.

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

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

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

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

          “Capital
Security Certificate” means a definitive Certificate registered in the name of
the Holder representing Capital Securities, which shall be substantially in the
form attached hereto as Exhibit A-1.

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

          “Certificate”
means any certificate evidencing Securities.

          “Certificate
of Trust” means the certificate of trust filed with the Secretary of State of
the State of Delaware with respect to the Trust, as amended and restated from
time to time.

          “Closing
Date” has the meaning set forth in the Purchase Agreement.

          “Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any
successor legislation.

          “Commission”
means the United States Securities and Exchange Commission.

          “Common
Securities” has the meaning set forth in Section 6.1(a).

          “Common
Security Certificate” means a definitive Certificate registered in the name of
the Holder representing a Common Security substantially in the form of Exhibit
A-2.

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

          “Corporate
Trust Office” means the office of the Institutional Trustee at which the
corporate trust business of the Institutional Trustee shall, at any particular
time, be principally administered, which office shall at all times be located in
the United States and at the date of execution of this Declaration is located
at 919 Market Street Suite 700 Wilmington, DE 19801, Attention: Corporate Trust
Division.

-3-

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

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

          “Debenture
Issuer” means Codorus Valley Bancorp, Inc., a bank holding company incorporated
in Pennsylvania, in its capacity as issuer of the Debentures under the
Indenture.

          “Debenture
Trustee” means Wells Fargo Bank, National Association, a national banking
association with its principal place of business in the State of Delaware, not
in its individual capacity but solely as trustee under the Indenture until a
successor is appointed thereunder, and thereafter means such successor trustee.

          “Debentures”
means the Junior Subordinated Debt Securities due July 7, 2036 to be issued by
the Debenture Issuer under the Indenture.

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

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

          “Delaware
Trustee” has the meaning set forth in Section 4.2.

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

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

          “Direct
Action” has the meaning set forth in Section 2.8(e).

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

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

          “Distribution
Payment Period” means the period from and including a Distribution Payment
Date, or in the case of the first Distribution Payment Period, the original
date of issuance of the Securities, to, but excluding, the next succeeding
Distribution Payment Date or, in the case of the last Distribution Payment
Period, the Redemption Date, Special Redemption

-4-

Date or Maturity Date (each as
defined in the Indenture), as the case may be, for the related Debentures.

          “DTC” means
The Depository Trust Company or any successor thereto.

          “Event of
Default” means the occurrence of an Indenture Event of Default.

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

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

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

          “Fiscal
Year” has the meaning set forth in Section 10.1.

          “Global
Capital Security” means a Capital Securities Certificate evidencing ownership
of Book-Entry Capital Securities.

          “Guarantee”
means the Guarantee Agreement, dated as of June 28, 2006, of the Sponsor in
respect of the Capital Securities.

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

          “Indemnified
Person” means a Company Indemnified Person or a Fiduciary Indemnified Person.

          “Indenture”
means the Indenture, dated as of June 28, 2006, among the Debenture Issuer and
the Debenture Trustee, and any indenture supplemental thereto pursuant to which
the Debentures are to be issued.

          “Indenture
Event of Default” means an “Event of Default” as defined in the Indenture.

          “Initial
Purchaser” means the initial purchaser of the Capital Securities.

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

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

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

-5-

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

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

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

          “LIBOR
Banking Day” has the meaning set forth in paragraph 2(b)(1) of Annex I.

          “LIBOR
Business Day” has the meaning set forth in paragraph 2(b)(1) of Annex I.

          “LIBOR
Determination Date” has the meaning set forth in paragraph 2(b)(1) of Annex I.

          “Liquidation”
has the meaning set forth in paragraph 3 of Annex I.

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

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

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

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

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

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

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

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

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

-6-

          “Paying
Agent” has the meaning set forth in Section 6.2.

          “Payment
Amount” has the meaning set forth in Section 5.1.

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

          “PORTAL”
has the meaning set forth in Section 2.6(a)(í).

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

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

          “Purchase
Agreement” means the Purchase Agreement relating to the offering and sale of
Capital Securities.

          “QIB” means
a “qualified institutional buyer” as defined under Rule 144A.

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

          “Redemption
Date” has the meaning set forth in paragraph 4(a) of Annex I.

          “Redemption/Distribution
Notice” has the meaning set forth in paragraph 4(e) of Annex I.

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

          “Registrar”
has the meaning set forth in Section 6.2.

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

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

          “Restricted
Securities Legend” has the meaning set forth in Section 8.2(c). 

          “Rule 144A”
means Rule 144A under the Securities Act.

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

-7-

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

          “Securities”
means the Common Securities and the Capital Securities, as applicable.

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

          “Special
Event” has the meaning set forth in paragraph 4(a) of Annex I.

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

          “Sponsor”
means Codorus Valley Bancorp, Inc., a bank holding company that is a U.S.
Person incorporated in Pennsylvania, or any successor entity in a merger,
consolidation or amalgamation that is a U.S. Person, in its capacity as sponsor
of the Trust.

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

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

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

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

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

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

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

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

          “Transfer
Agent” has the meaning set forth in Section 6.2.

          “Transfer
Notice” has the meaning set forth in Section 8.2(e).

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

          “Trustee”
or “Trustees” means each Person who has signed this Declaration as a trustee,
so long as such Person shall continue in office in accordance with the terms
hereof, and all other Persons who may from time to time be duly appointed,
qualified and serving as Trustees in 

-8-

accordance with the provisions hereof, and references herein to a
Trustee or the Trustees shall refer to such Person or Persons solely in their
capacity as trustees hereunder.

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

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

ARTICLE II

ORGANIZATION

          SECTION
2.1. Name. The Trust is named “CVB Statutory Trust No. 2,” as such name
may be modified from time to time by the Administrators following written
notice to the Institutional Trustee and the Holders of the Securities. The
Trust’s activities may be conducted under the name of the Trust or any other
name deemed advisable by the Administrators.

          SECTION
2.2. Office. The address of the principal office of the Trust, which
shall be in a state of the United States or the District of Columbia, is 105
Leader Heights Road, York, PA 17403. On ten Business Days’ written notice to
the Institutional Trustee and the Holders of the Securities, the Administrators
may designate another principal office, which shall be in a state of the United
States or the District of Columbia.

          SECTION
2.3. Purpose. The exclusive purposes and functions of the Trust are (a)
to issue and sell the Securities representing undivided beneficial interests in
the assets of the Trust, (b) to invest the gross proceeds from such sale to
acquire the Debentures, (c) to facilitate direct investment in the assets of
the Trust through issuance of the Common Securities and the Capital Securities
and (d) except as otherwise limited herein, to engage in only those other
activities incidental thereto that are deemed necessary or advisable by the
Institutional Trustee, including, without limitation, those activities specified
in this Declaration. The Trust shall not borrow money, issue debt or reinvest
proceeds derived from investments, pledge any of its assets, or otherwise
undertake (or permit to be undertaken) any activity that would cause the Trust
not to be classified for United States federal income tax purposes as a grantor
trust.

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

-9-

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

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

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
          (A)     the
 issuance and sale of the Securities;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
          (F)     the
 sending of notices (other than notices of default) and other information
 regarding the Securities and the Debentures to the Holders in accordance with
 this Declaration, including notice of any notice received from the Debenture
 Issuer of its election to defer payments 

 

-10-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 of interest on the Debentures by extending the interest payment
 period under the Indenture;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 

-11-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (A)     the
 establishment of the Property Account;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (B)     the
 receipt of the Debentures;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (I)     after
 any Event of Default (of which the Institutional Trustee has knowledge (as
 provided in Section 2.10(m) hereof)) (provided, that such Event of
 Default is not by or with respect to the Institutional Trustee), the taking
 of any action incidental to the foregoing as the Institutional Trustee may
 from time to time determine is necessary or advisable to give effect to the
 terms of this Declaration and protect and

 

-12-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 conserve the Trust Property for the benefit of the Holders (without
 consideration of the effect of any such action on any particular Holder);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

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

	
  

 	
  

 	
  

 
	
  

 	
  

 	
          (i)     the
 taking of any action necessary to obtain an exemption from the Securities
 Act;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
          (ii)     the
 determination of the States in which to take appropriate action to qualify or
 register for sale all or part of the Capital Securities and the

 

-13-

	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

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

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

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

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

-14-

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

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

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

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

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

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

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

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

          SECTION
2.8. Powers and Duties of the Institutional Trustee. 

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

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

                    (c)     The
Institutional Trustee shall:

-15-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)     establish
 and maintain a segregated non-interest bearing trust account (the “Property
 Account”) in the United States (as defined in Treasury Regulations §
 301.7701-7), in the name of and under the exclusive control of the
 Institutional Trustee, and maintained in the Institutional Trustee’s trust
 department, on behalf of the Holders of the Securities and, upon the receipt
 of payments of funds made in respect of the Debentures held by the
 Institutional Trustee, deposit such funds into the Property Account and make
 payments to the Holders of the Capital Securities and Holders of the Common
 Securities from the Property Account in accordance with Section 5.1. Funds in
 the Property Account shall be held uninvested until disbursed in accordance
 with this Declaration;

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

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

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

	
  

 	
  

 	
  

 
	
  

 	
  

 	
          (i)     the
 Trust has been completely liquidated and the proceeds of the liquidation
 distributed to the Holders of the Securities pursuant to the terms of the 

 

-16-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Securities and this Declaration (including Annex I) and the
 certificate of cancellation referenced in Section 7.1(b) has been filed; or

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

                    (h)     The
Institutional Trustee must exercise the powers set forth in this Section 2.8 in
a manner that is consistent with the purposes and functions of the Trust set
out in Section 2.3, and the Institutional Trustee shall not take any action
that is inconsistent with the purposes and functions of the Trust set out in
Section 2.3.

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

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

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

-17-

Administrator’s good faith reliance on the provisions of this
Declaration. The provisions of this Declaration, to the extent that they
restrict the duties and liabilities of the Administrators or the Trustees
otherwise existing at law or in equity, are agreed by the Sponsor and the
Holders to replace such other duties and liabilities of the Administrators or
the Trustees.

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

                    (d)     No
provision of this Declaration shall be construed to relieve the Institutional
Trustee from liability for its own negligent action, its own negligent failure to
act, or its own willful misconduct or bad faith with respect to matters that
are within the authority of the Institutional Trustee under this Declaration,
except that:

	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

-18-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Institutional Trustee pursuant to Section 2.8(c)(í) and except to the
 extent otherwise required by law; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

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

                    (b)     if
(i) in performing its duties under this Declaration, the Institutional Trustee
is required to decide between alternative courses of action, (ii) in construing
any of the provisions of this Declaration, the Institutional Trustee finds the
same ambiguous or inconsistent with any other provisions contained herein, or
(iii) the Institutional Trustee is unsure of the application of any provision
of this Declaration, then, except as to any matter as to which the Holders of
Capital Securities are entitled to vote under the terms of this Declaration,
the Institutional Trustee may deliver a notice to the Sponsor requesting the
Sponsor’s opinion as to the course of action to be taken and the Institutional
Trustee shall take such action, or refrain from taking such action, as the
Institutional Trustee in its sole discretion shall deem advisable and in the
best interests of the Holders, in which event the Institutional Trustee shall
have no liability except for its own negligence, willful misconduct or bad
faith;

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

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

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

                    (f)     the
Institutional Trustee may consult with counsel of its selection (which counsel
may be counsel to the Sponsor or any of its Affiliates) and the advice of such
counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or

-19-

omitted by it hereunder in good faith and in reliance thereon and in
accordance with such advice; the Institutional Trustee shall have the right at
any time to seek instructions concerning the administration of this Declaration
from any court of competent jurisdiction;

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

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

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

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

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

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

-20-

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

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

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

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

          SECTION
2.12. Execution of Documents. Unless otherwise determined in writing by
the Institutional Trustee, and except as otherwise required by the Statutory
Trust Act, the Institutional Trustee, or any one or more of the Administrators,
as the case may be, is authorized to execute and deliver on behalf of the Trust
any documents, agreements, instruments or certificates that the Trustees or the
Administrators, as the case may be, have the power and authority to execute
pursuant to Section 2.6.

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

-21-

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

          SECTION
2.15. Mergers.

                    (a)     The
Trust may not consolidate, amalgamate, merge with or into, or be replaced by,
or convey, transfer or lease its properties and assets substantially as an
entirety to any corporation or other Person, except as described in this
Section 2.15 and except with respect to the distribution of Debentures to
Holders of Securities pursuant to Section 7.1(a)(iv) of the Declaration or
Section 3 of Annex I.

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v)     such
 merger, consolidation, amalgamation, replacement, conveyance, transfer or
 lease does not adversely affect the rights, preferences and 

 

-22-

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 privileges of the Holders of the Securities (including any Successor
 Securities) in any material respect (other than with respect to any dilution
 of such Holders’ interests in the Successor Entity as a result of such
 merger, consolidation, amalgamation or replacement);

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 

                    (c)     Notwithstanding
Section 2.15(b), the Trust shall not, except with the consent of Holders of
100% in liquidation amount of the Securities, consolidate, amalgamate, merge
with or into, or be replaced by, or convey, transfer or lease its properties
and assets as an entirety or substantially as an entirety to, any other Person
or permit any other Person to consolidate, amalgamate, merge with or into, or
replace it if such consolidation, amalgamation, merger, replacement,
conveyance, transfer or lease would cause the Trust or Successor Entity to be
classified as other than a grantor trust for United States federal income tax
purposes.

-23-

ARTICLE III

SPONSOR

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

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

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

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

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

ARTICLE IV

TRUSTEES AND ADMINISTRATORS

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

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

                    (b)     after
the issuance of any Securities, the number of Trustees may be increased or
decreased by vote of the Holder of a Majority in liquidation amount of the
Common Securities voting as a class at a meeting of the Holder of the Common
Securities; provided, however, that there shall be a Delaware
Trustee if required by Section 4.2; and there shall always be one Trustee who
shall be the Institutional Trustee, and such Trustee may also serve as Delaware
Trustee if it meets the applicable requirements, in which case Section 2.11
shall have no application to such entity in its capacity as Institutional
Trustee.

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

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

-24-

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

          SECTION
4.3. Institutional Trustee; Eligibility. 

	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
            (i)       not
 be an Affiliate of the Sponsor;

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
                     (c)     If
 the Institutional Trustee has or shall acquire any “conflicting interest”
 within the meaning of § 310(b) of the Trust Indenture Act, the Institutional
 Trustee shall either eliminate such interest or resign, to the extent and in
 the manner provided by, and subject to this Declaration.

 
	
  

 	
  

 	
  

 
	
                     (d)     The
 initial Institutional Trustee shall be Wells Fargo Bank, National
 Association.

 

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

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

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

-25-

by the Administrators may be taken by, and any power of the
Administrators may be exercised by, or with the consent of, any one such Administrator
acting alone.

          SECTION
4.6. Initial Delaware Trustee. The initial Delaware Trustee shall be
Wells Fargo Delaware Trust Company.

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

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

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

                    (c)     Unless
an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by an act of the Holders of a Majority in liquidation
amount of the Common Securities. If any Trustee shall be so removed, the
Holders of the Common Securities, by act of the Holders of a Majority in
liquidation amount of the Common Securities delivered to the Relevant Trustee,
shall promptly appoint a successor Relevant Trustee, and such successor Trustee
shall comply with the applicable requirements of this Section 4.7. If an Event
of Default shall have occurred and be continuing, the Institutional Trustee or
the Delaware Trustee, or both of them, may be removed by the act of the Holders
of a Majority in liquidation amount of the Capital Securities, delivered to the
Relevant Trustee (in its individual capacity and on behalf of the Trust). If
any Trustee shall be so removed, the Holders of Capital Securities, by act of
the Holders of a Majority in liquidation amount of the Capital Securities then
outstanding delivered to the Relevant Trustee, shall promptly appoint a
successor Relevant Trustee or Trustees, and such successor Trustee shall comply
with the applicable requirements of this Section 4.7. If no successor Relevant
Trustee shall have been so appointed by the Holders of a Majority in
liquidation amount of the Capital Securities and accepted appointment in the
manner required by this Section 4.7 within 30 days after delivery of an
instrument of removal, the 

-26-

Relevant Trustee or any Holder who has been a Holder of the Securities
for at least six months may, on behalf of himself and all others similarly
situated, petition any federal, state or District of Columbia court of
competent jurisdiction for the appointment of a successor Relevant Trustee.
Such court may thereupon, after prescribing such notice, if any, as it may deem
proper, appoint a successor Relevant Trustee or Trustees.

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

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

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

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

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

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

          SECTION
4.8. Vacancies Among Trustees. If a Trustee ceases to hold office for
any reason and the number of Trustees is not reduced pursuant to Section 4.1,
or if the number of Trustees is increased pursuant to Section 4.1, a vacancy
shall occur. A resolution certifying the existence of such vacancy by the
Trustees or, if there are more than two, a majority of the Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 4.7.

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

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

          SECTION
4.11. Delegation of Power.

                    (a)     
Any Trustee or any Administrator, as the case may be, may, by power of attorney
consistent with applicable law, delegate to any other natural person over the
age of 21

-28-

that is a U.S. Person his or her power for the purpose of executing any
documents, instruments or other writings contemplated in Section 2.6.

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

          SECTION
4.12. Merger, Conversion, Consolidation or Succession to Business. Any
Person into which the Institutional Trustee or the Delaware Trustee, as the
case may be, may be merged or converted or with which either may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Institutional Trustee or the Delaware Trustee, as
the case may be, shall be a party, or any Person succeeding to all or
substantially all the corporate trust business of the Institutional Trustee or
the Delaware Trustee, as the case may be, shall be the successor of the
Institutional Trustee or the Delaware Trustee, as the case may be, hereunder,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, provided such Person shall be otherwise qualified
and eligible under this Article and, provided, further, that such Person shall
file an amendment to the Certificate of Trust with the Secretary of State of
the State of Delaware as contemplated in Section 4.7(i).

ARTICLE V

DISTRIBUTIONS

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

ARTICLE VI

ISSUANCE OF SECURITIES

          SECTION
6.1. General Provisions Regarding Securities. 

                    (a)     The
Administrators shall on behalf of the Trust issue one series of capital
securities, evidenced by a certificate substantially in the form of Exhibit
A-1, representing undivided beneficial interests in the assets of the Trust and
having such terms as are set forth in Annex I (the “Capital Securities”), and
one series of common securities, evidenced by a 

-29-

certificate substantially in the form of Exhibit A-2, representing
undivided beneficial interests in the assets of the Trust and having such terms
as are set forth in Annex I (the “Common Securities”). The Trust shall issue no
securities or other interests in the assets of the Trust other than the Capital
Securities and the Common Securities. The Capital Securities rank pari passu and payment thereon shall be
made Pro Rata with the Common Securities except that, where an Event of Default
has occurred and is continuing, the rights of Holders of the Common Securities
to payment in respect of Distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights to payment of the
Holders of the Capital Securities.

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

                    (c)     The
Capital Securities shall be, except as provided in Section 6.4, Book-Entry
Capital Securities issued in the form of one or more Global Capital Securities
registered in the name of the Depositary, or its nominee and deposited with the
Depositary or a custodian for the Depositary for credit by the Depositary to
the respective accounts of the Depositary Participants thereof (or such other
accounts as they may direct).

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

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

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

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

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                    (a)     The
Trust shall maintain in Wilmington, Delaware, an office or agency where the
Securities may be presented for payment (the “Paying Agent”), and an office or
agency where Securities may be presented for registration of transfer or
exchange (the “Transfer Agent”). The Trust shall keep or cause to be kept at
such office or agency a register for the purpose of registering Securities and
transfers and exchanges of Securities, such register to be held by a registrar
(the “Registrar”). The Administrators may appoint the Paying Agent, the
Registrar and the Transfer Agent, and may appoint one or more additional Paying
Agents, one or more co-Registrars, or one or more co-Transfer Agents in such
other locations as it shall determine. The term “Paying Agent” includes any
additional Paying Agent, the term “Registrar” includes any additional Registrar
or co-Registrar and the term “Transfer Agent” includes any additional Transfer
Agent or co-Transfer Agent. The Administrators may change any Paying Agent, Transfer
Agent or Registrar at any time without prior notice to any Holder. The
Administrators shall notify the Institutional Trustee of the name and address
of any Paying Agent, Transfer Agent and Registrar not a party to this
Declaration. The Administrators hereby initially appoint the Institutional
Trustee to act as Paying Agent, Transfer Agent and Registrar for the Capital
Securities and the Common Securities at its Corporate Trust Office. The
Institutional Trustee or any of its Affiliates in the United States may act as
Paying Agent, Transfer Agent or Registrar.

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

          SECTION
6.3. Form and Dating. 

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

                    (b)     The
Capital Securities sold by the Trust to the Initial Purchaser pursuant to the
Purchase Agreement shall be issued in the form of a Global Capital Security,
registered in the name of the Depositary, without coupons and with the
Restricted Securities Legend.

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          SECTION
6.4. Book-Entry Capital Securities.

                    (a)     A
Global Capital Security may be exchanged, in whole or in part, for Definitive
Capital Securities Certificates registered in the names of Owners only if such
exchange complies with Article VIII and (i) the Depositary advises the
Administrators and the Institutional Trustee in writing that the Depositary is
no longer willing or able to properly discharge its responsibilities with
respect to the Global Capital Security, and no qualified successor is appointed
by the Administrators within ninety (90) days of receipt of such notice,
(ii) the Depositary ceases to be a clearing agency registered under the
Exchange Act and the Administrators fail to appoint a qualified successor within
ninety (90) days of obtaining knowledge of such event, (iii) the Administrators
at their option advise the Institutional Trustee in writing that the Trust
elects to terminate the book-entry system through the Depositary or
(iv) an Indenture Event of Default has occurred and is continuing. Upon
the occurrence of any event specified in clause (i), (ii), (iii) or (iv) above,
the Administrators shall notify the Depositary and instruct the Depositary to
notify all Owners and the Institutional Trustee of the occurrence of such event
and of the availability of Definitive Capital Securities Certificates to Owners
requesting the same. Upon the issuance of Definitive Capital Securities
Certificates, the Administrators and the Institutional Trustee shall recognize
the Holders of the Definitive Capital Securities Certificates as Holders.
Notwithstanding the foregoing, if an Owner wishes at any time to transfer an
interest in such Global Capital Security to a Person other than a QIB, such
transfer shall be effected, subject to the Applicable Depository Procedures, in
accordance with the provisions of this Section 6.4 and Article VIII, and the
transferee shall receive a Definitive Capital Securities Certificate in
connection with such transfer. A holder of a Definitive Capital Securities
Certificate that is a QIB may upon request, and in accordance with the
provisions of this Section 6.4 and Article VIII, exchange such Definitive
Capital Securities Certificate for a beneficial interest in a Global Capital
Security.

                    (b)     If
any Global Capital Security is to be exchanged for Definitive Capital
Securities Certificates or canceled in part, or if any Definitive Capital
Securities Certificate is to be exchanged in whole or in part for any Global
Capital Security, then either (i) such Global Capital Security shall be so
surrendered for exchange or cancellation as provided in this Section 6.4 and
Article VIII or (ii) the aggregate liquidation amount represented by such
Global Capital Security shall be reduced, subject to Section 6.3, or increased
by an amount equal to the liquidation amount represented by that portion of the
Global Capital Security to be so exchanged or canceled, or equal to the
liquidation amount represented by such Definitive Capital Securities
Certificates to be so exchanged for any Global Capital Security, as the case
may be, by means of an appropriate adjustment made on the records of the
Securities Registrar, whereupon the Institutional Trustee, in accordance with
the Applicable Depositary Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender to the Administrators or the Registrar of any Global
Capital Security or Securities by the Depositary, accompanied by registration
instructions, the Administrators, or any one of them, shall execute the
Definitive Capital Securities Certificates in accordance with the instructions
of the Depositary. None of the Registrar, Administrators, or the Institutional
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be fully protected in relying on, such
instructions.

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

                    (d)     The
Depositary or its nominee, as registered owner of a Global Capital Security,
shall be the Holder of such Global Capital Security for all purposes under this
Declaration and the Global Capital Security, and Owners with respect to a
Global Capital Security shall hold such interests pursuant to the Applicable
Depositary Procedures. The Registrar, the Administrators and the Institutional
Trustee shall be entitled to deal with the Depositary for all purposes of this
Declaration relating to the Global Capital Securities (including the payment of
the liquidation amount of and Distributions on the Book-Entry Capital
Securities represented thereby and the giving of instructions or directions by
Owners represented thereby and the giving of notices) as the sole Holder of the
Book-Entry Capital Securities represented thereby and shall have no obligations
to the Owners thereof. None of the Administrators, the Institutional Trustee
nor the Registrar shall have any liability in respect of any transfers effected
by the Depositary.

                    (e)     The
rights of the Owners of the Book-Entry Capital Securities shall be exercised
only through the Depositary and shall be limited to those established by law,
the Applicable Depositary Procedures and agreements between such Owners and the
Depositary and/or the Depositary Participants; provided, solely for the purpose of determining whether
the Holders of the requisite amount of Capital Securities have voted on any
matter provided for in this Declaration, to the extent that Capital Securities
are represented by a Global Capital Security, the Administrators and the
Institutional Trustee may conclusively rely on, and shall be fully protected in
relying on, any written instrument (including a proxy) delivered to the
Institutional Trustee by the Depositary setting forth the Owners’ votes or
assigning the right to vote on any matter to any other Persons either in whole
or in part. To the extent that Capital Securities are represented by a Global
Capital Security, the initial Depositary will make book-entry transfers among
the Depositary Participants and receive and transmit payments on the Capital
Securities that are represented by a Global Capital Security to such Depositary
Participants, and none of the Sponsor, the Administrators or the Institutional
Trustee shall have any responsibility or obligation with respect thereto.

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

          SECTION
6.5. Mutilated, Destroyed, Lost or Stolen Certificates. If:

                    (a)     any
mutilated Certificates should be surrendered to the Registrar, or if the
Registrar shall receive evidence to its satisfaction of the destruction, loss
or theft of any Certificate; and

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                    (b)     there
shall be delivered to the Registrar, the Administrators and the Institutional
Trustee such security or indemnity as may be required by them to hold each of
them harmless; then, in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, an Administrator on behalf of the Trust
shall execute (and in the case of a Capital Security Certificate, the
Institutional Trustee shall authenticate) and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like denomination. In connection with the issuance of any new
Certificate under this Section 6.5, the Registrar or the Administrators may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith. Any duplicate Certificate
issued pursuant to this Section shall constitute conclusive evidence of an
ownership interest in the relevant Securities, as if originally issued, whether
or not the lost, stolen or destroyed Certificate shall be found at any time.

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

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

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

                    (a)     The
legal title to the Trust Property is vested exclusively in the Institutional
Trustee (in its capacity as such) in accordance with Section 2.6(g), and the
Holders shall not have any right or title therein other than the undivided
beneficial interest in the assets of the Trust conferred by their Securities
and they shall have no right to call for any partition or division of property,
profits or rights of the Trust except as described below. The Securities shall
be personal property giving only the rights specifically set forth therein and
in this Declaration. The Securities shall have no, and the issuance of the
Securities shall not be subject to, preemptive or other similar rights and when
issued and delivered to Holders against payment of the purchase price therefor,
the Securities will be fully paid and nonassessable by the Trust.

                    (b)     For
so long as any Capital Securities remain outstanding, if, upon an Indenture
Event of Default for which acceleration is permitted under Section 5.01, the
Debenture Trustee fails or the holders of not less than 25% in principal amount
of the outstanding Debentures fail to declare the principal of all of the
Debentures to be immediately due and payable, the Holders of not less than a
Majority in liquidation amount of the Capital Securities

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then outstanding shall have the right to make such declaration by a
notice in writing to the Institutional Trustee, the Sponsor and the Debenture
Trustee.

                    (c)     At
any time after a declaration of acceleration of maturity of the Debentures has
been made and before a judgment or decree for payment of the money due has been
obtained by the Debenture Trustee as provided in the Indenture, if the
Institutional Trustee, subject to the provisions hereof, fails to annul any
such declaration and waive such default, the Holders of not less than a
Majority in liquidation amount of the Capital Securities, by written notice to
the Institutional Trustee, the Sponsor and the Debenture Trustee, may rescind
and annul such declaration and its consequences if:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
          (A)     all
 overdue installments of interest on all of the Debentures;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
          (B)     any
 accrued Deferred Interest on all of the Debentures;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

                    (e)     Upon
receipt by the Institutional Trustee of written notice declaring such an
acceleration, or rescission and annulment thereof, by Holders of any part of
the Capital Securities, a record date shall be established for determining
Holders of outstanding Capital Securities entitled to join in such notice,
which record date shall be at the close of business on the day the
Institutional Trustee receives such notice. The Holders on such record date, or
their duly designated proxies, and only such Persons, shall be entitled to join
in such notice, whether

-35-

or not such Holders remain Holders after such record date; provided,
that, unless such declaration of acceleration, or rescission and annulment, as
the case may be, shall have become effective by virtue of the requisite
percentage having joined in such notice prior to the day that is 90 days after
such record date, such notice of declaration of acceleration, or rescission and
annulment, as the case may be, shall automatically and without further action
by any Holder be canceled and of no further effect. Nothing in this paragraph
shall prevent a Holder, or a proxy of a Holder, from giving, after expiration
of such 90-day period, a new written notice of declaration of acceleration, or
rescission and annulment thereof, as the case may be, that is identical to a
written notice that has been canceled pursuant to the proviso to the preceding
sentence, in which event a new record date shall be established pursuant to the
provisions of this Section 6.8.

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

ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST

          SECTION
7.1. Dissolution and Termination of Trust.

                    (a)     The
Trust shall dissolve on the first to occur of

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)     unless
 earlier dissolved, on July 7, 2041, the expiration of the term of the Trust;

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 

-36-

	
  

 	
  

 	
  

 
	
  

 	
  

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

 

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

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

ARTICLE VIII

TRANSFER OF INTERESTS

          SECTION
8.1. General. 

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

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

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

                    (d)     The
Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with
such indemnity as the Registrar may require) in respect of any tax or other
governmental charges that may be imposed in relation to it. Upon surrender for
registration of transfer of any Securities, the Registrar shall cause one or
more new Securities to be issued in the name of the designated transferee or
transferees. Any Security issued upon any registration of transfer or exchange
pursuant to the terms of this Declaration shall evidence the same Security and
shall be entitled to 

-37-

the same benefits under this Declaration as the Security surrendered
upon such registration of transfer or exchange. Every Security surrendered for
registration of transfer shall be accompanied by a written instrument of
transfer in form satisfactory to the Registrar duly executed by the Holder or
such Holder’s attorney duly authorized in writing. Each Security surrendered
for registration of transfer shall be canceled by the Institutional Trustee
pursuant to Section 6. A transferee of a Security shall be entitled to the
rights and subject to the obligations of a Holder hereunder upon the receipt by
such transferee of a Security. By acceptance of a Security, each transferee
shall be deemed to have agreed to be bound by this Declaration.

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

          SECTION
8.2. Transfer Procedures and Restrictions. 

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

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

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

          THIS
CAPITAL SECURITY IS A GLOBAL CAPITAL SECURITY WITHIN THE MEANING OF THE
DECLARATION HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS CAPITAL SECURITY IS
EXCHANGEABLE FOR CAPITAL SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
THAN DTC OR ITS

-38-

NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE DECLARATION,
AND NO TRANSFER OF THIS CAPITAL SECURITY (OTHER THAN A TRANSFER OF THIS CAPITAL
SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR
ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

          UNLESS THIS
CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO CVB
STATUTORY TRUST NO. 2 OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

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

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BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

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

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

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

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

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THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL
BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

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

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

          SECTION
8.3. Deemed Security Holders. The Trust, the Administrators, the
Trustees, the Paying Agent, the Transfer Agent or the Registrar may treat the
Person in whose name any Certificate shall be registered on the books and
records of the Trust as the sole holder of such Certificate and of the
Securities represented by such Certificate for purposes of receiving Distributions
and for all other purposes whatsoever and, accordingly, shall not be bound to
recognize any equitable or other claim to or interest in such Certificate or in
the Securities represented by such Certificate on the part of any Person,
whether or not the Trust, the Administrators, the Trustees, the Paying Agent,
the Transfer Agent or the Registrar shall have actual or other notice thereof.

ARTICLE IX

LIMITATION OF LIABILITY OF HOLDERS

OF SECURITIES, TRUSTEES OR OTHERS

          SECTION
9.1. Liability.

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

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

          SECTION
9.2. Exculpation.

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

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

          SECTION
9.3. Fiduciary Duty.

                    (a)       To
the extent that, at law or in equity, an Indemnified Person has duties
(including fiduciary duties) and liabilities relating thereto to the Trust or
to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The

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provisions of this Declaration, to the extent that they restrict the
duties and liabilities of an Indemnified Person otherwise existing at law or in
equity (other than the duties imposed on the Institutional Trustee under the
Trust Indenture Act), are agreed by the parties hereto to replace such other
duties and liabilities of the Indemnified Person.

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

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

	
  

 	
  

 
	
  

 	
           (ii)     The
 Sponsor shall indemnify, to the fullest extent permitted by law, any
 Indemnified Person who was or is a party or is threatened to be made a party
 to any threatened, pending or completed action or suit by or in the right of
 the Trust to procure a judgment in its favor by reason of the fact that such
 Person is or was an Indemnified Person against expenses (including attorneys’
 fees and expenses) actually and reasonably incurred by such Person in
 connection with the defense or settlement of such action or suit if such
 Person acted in good faith and in a manner such Person reasonably believed to
 be in or not opposed to the best interests of the Trust and except that no
 such indemnification shall be made in respect of any claim, issue or matter
 as to which such Indemnified Person shall have been adjudged to be liable to
 the Trust unless and only to the extent that the Court of Chancery of
 Delaware or the court in which such action or suit was 

 

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 brought shall determine upon application that, despite the
 adjudication of liability but in view of all the circumstances of the case,
 such Person is fairly and reasonably entitled to indemnity for such expenses
 which such Court of Chancery or such other court shall deem proper.

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (v)     To
 the fullest extent permitted by law, expenses (including attorneys’ fees and
 expenses) incurred by an Indemnified Person in defending a civil, criminal,
 administrative or investigative action, suit or proceeding referred to in
 paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor
 in advance of the final disposition of such action, suit or proceeding upon
 receipt of an undertaking by or on behalf of such Indemnified Person to repay
 such amount if it shall ultimately be determined that such Person is not
 entitled to be indemnified by the Sponsor as authorized in this Section
 9.4(a). Notwithstanding the foregoing, no advance shall be made by the Sponsor
 if a determination is reasonably and promptly made (1) in the case of a
 Company Indemnified Person (A) by the Administrators by a majority vote of a
 Quorum of disinterested Administrators, (B) if such a Quorum is not
 obtainable, or, even if obtainable, if a Quorum of disinterested
 Administrators so directs, by independent legal counsel in a written opinion
 or (C) by the Common Security Holder of the Trust, that, based upon the facts
 known to the Administrators, counsel or the Common Security Holder at the time
 such determination is made, such Indemnified Person acted in bad faith or in
 a manner that such Person either believed to be opposed to or did not believe
 to be in the best interests of the Trust, or, with respect to any criminal
 proceeding, that such Indemnified Person believed or had reasonable cause to
 believe such conduct was unlawful, or (2) in the case of a Fiduciary
 Indemnified Person, by independent legal counsel in a written opinion that,
 based upon the facts known to the counsel at the time such determination is
 made, such 

 

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 Indemnified Person acted in bad faith or in a manner that such
 Indemnified Person either believed to be opposed to or did not believe to be
 in the best interests of the Trust, or, with respect to any criminal proceeding,
 that such Indemnified Person believed or had reasonable cause to believe such
 conduct was unlawful. In no event shall any advance be made (i) to a Company
 Indemnified Person in instances where the Administrators, independent legal
 counsel or the Common Security Holder reasonably determine that such Person
 deliberately breached such Person’s duty to the Trust or its Common or
 Capital Security Holders or (ii) to a Fiduciary Indemnified Person in
 instances where independent legal counsel promptly and reasonably determines
 in a written opinion that such Person deliberately breached such Person’s
 duty to the Trust or its Common or Capital Security Holders.

 

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

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

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

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

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the same position under the provisions of
this Section 9.4 with respect to the resulting or surviving entity as such
Person would have with respect to such constituent entity if its separate
existence had continued.

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

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

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

          SECTION
9.6. Compensation; Fee.

                    (a)     Subject
to the provisions set forth in the Fee Agreement of even date herewith, by and
among the Institutional Trustee, the Trust and the Initial Purchaser (the “Fee
Agreement”), the Sponsor agrees:

	
  

 	
  

 
	
  

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

 

-46-

	
  

 	
  

 
	
  

 	
           (ii)     except
 as otherwise expressly provided herein or in the Fee Agreement, to reimburse
 the Trustees upon request for all reasonable, documented expenses,
 disbursements and advances incurred or made by the Trustees in accordance
 with any provision of this Declaration (including the reasonable compensation
 and the expenses and disbursements of their respective agents and counsel),
 except any such expense, disbursement or advance attributable to their
 negligence or willful misconduct.

 

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

ARTICLE X

ACCOUNTING

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

          SECTION
10.2. Certain Accounting Matters. 

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

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

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

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

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                    (e)     The
Administrators will cause the Sponsor’s reports on Form FR Y-9C and FR Y-9LP to
be delivered to the Holders promptly following their filing with the Board of
Governors of the Federal Reserve System (the “Federal Reserve”).

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

          SECTION
10.4. Withholding. The Institutional Trustee or any Paying Agent and the
Administrators shall comply with all withholding requirements under United
States federal, state and local law. The Institutional Trustee or any Paying
Agent shall request, and each Holder shall provide to the Institutional Trustee
or any Paying Agent, such forms or certificates as are necessary to establish
an exemption from withholding with respect to the Holder, and any
representations and forms as shall reasonably be requested by the Institutional
Trustee or any Paying Agent to assist it in determining the extent of, and in
fulfilling, its withholding obligations. The Administrators shall file required
forms with applicable jurisdictions and, unless an exemption from withholding
is properly established by a Holder, shall remit amounts withheld with respect
to the Holder to applicable jurisdictions. To the extent that the Institutional
Trustee or any Paying Agent is required to withhold and pay over any amounts to
any authority with respect to distributions or allocations to any Holder, the
amount withheld shall be deemed to be a Distribution to the Holder in the
amount of the withholding. In the event of any claimed overwithholding, Holders
shall be limited to an action against the applicable jurisdiction. If the
amount required to be withheld was not withheld from actual Distributions made,
the Institutional Trustee or any Paying Agent may reduce subsequent
Distributions by the amount of such withholding.

ARTICLE XI

AMENDMENTS AND MEETINGS

          SECTION
11.1. Amendments.

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

	
  

 	
  

 
	
  

 	
           (i)     the
 Institutional Trustee,

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

	
  

 	
  

 
	
  

 	
 (i)     unless the Institutional Trustee
 shall have first received

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

-49-

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

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

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

	
  

 	
  

 
	
  

 	
           (i)        cure
 any ambiguity;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (iv)     modify,
 eliminate or add to any provision of this Declaration to such extent as may
 be necessary or desirable, including, without limitation, to ensure that the
 Trust will be classified for United States federal income tax purposes at all
 times as a grantor trust and will not be required to register as an
 Investment Company under the Investment Company Act (including without
 limitation to conform to any change in Rule 3a-5, Rule 3a-7 or any other
 applicable rule under the Investment Company Act or written change in
 interpretation or application thereof by any legislative body, court,
 government agency or regulatory authority) which amendment does not have a
 material adverse effect on the right, preferences or privileges of the
 Holders of Securities;

 

provided, however, that no such
modification, elimination or addition referred to in clauses (i), (ii), (iii)
or (iv) shall adversely affect the powers, preferences or rights of Holders of
Capital Securities.

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

                    (a)     Meetings
of the Holders of any class of Securities may be called at any time by the
Administrators (or as provided in the terms of the Securities) to consider and
act on any matter on which Holders of such class of Securities are entitled to
act under the terms of this Declaration, the terms of the Securities or the
rules of any stock exchange on which the Capital Securities are listed or
admitted for trading, if any. The Administrators shall call a meeting of the
Holders of such class if directed to do so by the Holders of not less than 10%
in liquidation amount of such class of Securities. Such direction shall be
given by delivering to the Administrators one or more notices in a writing
stating that the signing Holders of the Securities wish to call a meeting and
indicating the general or specific purpose for which the meeting is to be
called. Any Holders of the Securities calling a meeting shall specify in
writing the Certificates held by the Holders of the Securities exercising the
right to call a meeting and only those 

-50-

Securities represented by such Certificates shall be counted for
purposes of determining whether the required percentage set forth in the second
sentence of this paragraph has been met.

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

	
  

 	
  

 
	
  

 	
           (i)     notice
 of any such meeting shall be given to all the Holders of the Securities
 having a right to vote thereat at least 15 days and not more than 60 days
 before the date of such meeting. Whenever a vote, consent or approval of the
 Holders of the Securities is permitted or required under this Declaration or
 the rules of any stock exchange on which the Capital Securities are listed or
 admitted for trading, if any, such vote, consent or approval may be given at
 a meeting of the Holders of the Securities. Any action that may be taken at a
 meeting of the Holders of the Securities may be taken without a meeting if a
 consent in writing setting forth the action so taken is signed by the Holders
 of the Securities owning not less than the minimum amount of Securities that
 would be necessary to authorize or take such action at a meeting at which all
 Holders of the Securities having a right to vote thereon were present and
 voting. Prompt notice of the taking of action without a meeting shall be
 given to the Holders of the Securities entitled to vote who have not
 consented in writing. The Administrators may specify that any written ballot
 submitted to the Holders of the Securities for the purpose of taking any
 action without a meeting shall be returned to the Trust within the time
 specified by the Administrators;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

-51-

	
  

 	
  

 
	
  

 	
 provided, however, that each meeting
 shall be conducted in the United States (as that term is defined in Treasury
 Regulations § 301.7701-7).

 

ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

AND DELAWARE TRUSTEE

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

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

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

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

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

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

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

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

-52-

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

                    (b)     if
it is not a natural person, the execution, delivery and performance by the
Delaware Trustee of this Declaration has been duly authorized by all necessary
corporate action on the part of the Delaware Trustee. This Declaration has been
duly executed and delivered by the Delaware Trustee, and under Delaware law
(excluding any securities laws) constitutes a legal, valid and binding
obligation of the Delaware Trustee, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency
and other similar laws affecting creditors’ rights generally and to general
principles of equity and the discretion of the court (regardless of whether
considered in a proceeding in equity or at law);

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

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

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

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

ARTICLE XIII

MISCELLANEOUS

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

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

-53-

	
  

 	
  

 
	
  

 	
 CVB
 Statutory Trust No. 2

 
	
  

 	
 c/o Codorus
 Valley Bancorp, Inc.

 
	
  

 	
 105 Leader
 Heights Road

 
	
  

 	
 York, PA
 17403

 
	
  

 	
 Attention: Jann
 Allen Weaver

 
	
  

 	
 Telecopy: (717)
 747-9276

 
	
  

 	
 Telephone: (717)
 747-1502

 

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

	
  

 	
  

 
	
  

 	
 Wells Fargo
 Delaware Trust Company

 
	
  

 	
 919 Market
 Street Suite 700

 
	
  

 	
 Wilmington,
 DE 19801

 
	
  

 	
 Attention:
 Corporate Trust Division

 
	
  

 	
 Telecopy:
 302-575-2006

 
	
  

 	
 Telephone:
 302-575-2005

 

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

	
  

 	
  

 
	
  

 	
 Wells Fargo
 Bank, National Association

 
	
  

 	
 919 Market
 Street Suite 700

 
	
  

 	
 Wilmington,
 DE 19801

 
	
  

 	
 Attention:
 Corporate Trust Division

 
	
  

 	
 Telecopy:
 302-575-2006

 
	
  

 	
 Telephone:
 302-575-2005

 

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

	
  

 	
  

 
	
  

 	
 Codorus
 Valley Bancorp, Inc.

 
	
  

 	
 105 Leader
 Heights Road

 
	
  

 	
 York, PA
 17403

 
	
  

 	
 Attention: Jann
 Allen Weaver

 
	
  

 	
 Telecopy: (717)
 747-9276

 
	
  

 	
 Telephone: (717)
 747-1502

 

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

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

-54-

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

          SECTION
13.3. Submission to Jurisdiction. 

                    (a)     Each
of the parties hereto agrees that any suit, action or proceeding arising out of
or based upon this Declaration, or the transactions contemplated hereby, may be
instituted in any of the state or federal courts of the State of New York
located in the Borough of Manhattan, City and State of New York, and further
agrees to submit to the jurisdiction of Delaware, and to any actions that are
instituted in state or Federal court in Wilmington, Delaware and any competent
court in the place of its corporate domicile in respect of actions brought
against it as a defendant. In addition, each such party irrevocably waives, to
the fullest extent permitted by law, any objection which it may now or
hereafter have to the laying of the venue of such suit, action or proceeding
brought in any such court and irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an
inconvenient forum and irrevocably waives any right to which it may be entitled
on account of its place of corporate domicile. Each such party hereby
irrevocably waives any and all right to trial by jury in any legal proceeding
arising out of or relating to this Declaration or the transactions contemplated
hereby. Each such party agrees that final judgment in any proceedings brought
in such a court shall be conclusive and binding upon it and may be enforced in
any court to the jurisdiction of which it is subject by a suit upon such
judgment.

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

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

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

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

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

-55-

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

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

-56-

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 DELAWARE TRUST

 
	
  

 	
   COMPANY,

 
	
  

 	
   as
 Delaware Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL

 
	
  

 	
   ASSOCIATION,

 
	
  

 	
   as
 Institutional Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 CODORUS
 VALLEY BANCORP, INC.

 
	
  

 	
   as
 Sponsor

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title:

 	
   

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Administrator

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Administrator

 

-57-

ANNEX I

TERMS OF

CAPITAL SECURITIES AND

COMMON SECURITIES

          Pursuant to
Section 6.1 of the Amended and Restated Declaration of Trust, dated as of June
28, 2006 (as amended from time to time, the “Declaration”), the designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Capital Securities and the Common Securities are set out below (each
capitalized term used but not defined herein has the meaning set forth in the
Declaration):

          1.      Designation
and Number. 

          (a)     Capital
Securities. 7,000 Capital Securities of CVB Statutory Trust No. 2 (the
“Trust”), with an aggregate stated liquidation amount with respect to the
assets of the Trust of Seven Million Dollars ($7,000,000) and a stated
liquidation amount with respect to the assets of the Trust of $1,000 per
Capital Security, are hereby designated for the purposes of identification only
as the “Capital Securities” (the “Capital Securities”). The Capital Security
Certificates evidencing the Capital Securities shall be substantially in the
form of Exhibit A-1 to the Declaration, with such changes and additions thereto
or deletions therefrom as may be required by ordinary usage, custom or practice
or to conform to the rules of any stock exchange on which the Capital
Securities are listed, if any.

          (b)     Common
Securities. 217 Common Securities of the Trust (the “Common Securities”) will
be evidenced by Common Security Certificates substantially in the form of Exhibit
A-2 to the Declaration, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice. In the
absence of an Event of Default, the Common Securities will have an aggregate
stated liquidation amount with respect to the assets of the Trust of Two
Hundred Seventeen Thousand Dollars ($217,000) and a stated liquidation amount
with respect to the assets of the Trust of $1,000 per Common Security.

          2.      Distributions.

          (a)     Distributions
payable on each Security will be payable at a variable per annum rate of
interest, reset quarterly, equal to LIBOR, as determined on the LIBOR
Determination Date for such Distribution Payment Period, plus 1.54% (the
“Coupon Rate”) of the stated liquidation amount of $1,000 per Security,
(provided, however, that the Coupon Rate for any Distribution Payment Period
may not exceed the highest rate permitted by New York law, as the same may be
modified by United States law of general applicability), such Coupon Rate being
the rate of interest payable on the Debentures to be held by the Institutional
Trustee. Except as set forth below in respect of an Extension Period,
Distributions in arrears for more than one quarterly period will bear interest
thereon compounded quarterly at the applicable Coupon Rate for each such
quarterly period (to the extent permitted by applicable law). The term
“Distributions” as used herein includes cash distributions, any such compounded
distributions and any Additional Interest payable on the Debentures unless
otherwise stated. A Distribution is payable only to the extent that payments
are made in respect of the Debentures held by the 

A-I-1

Institutional Trustee and to the extent the Institutional Trustee has
funds legally available in the Property Account therefor. The amount of
Distributions payable for any Distribution Payment Period will be computed for
any full quarterly Distribution Payment Period on the basis of a 360-day year
and the actual number of days elapsed in the relevant Distribution period;
provided, however, that upon the occurrence of a Special Event redemption
pursuant to paragraph 4(a) below the amounts payable pursuant to this
Declaration shall be calculated as set forth in the definition of Special Redemption
Price.

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

	
  

 	
  

 
	
  

 	
           (1)     On
 the second LIBOR Business Day (provided, that on such day commercial
 banks are open for business (including dealings in foreign currency deposits)
 in London (a “LIBOR Banking Day”), and otherwise the next preceding LIBOR
 Business Day that is also a LIBOR Banking Day) prior to January 15, April 15,
 July 15 and October 15 immediately succeeding the commencement of such
 Distribution Payment Period (or, with respect to the first Distribution
 Payment Period, on June 26, 2006), (each such day, a “LIBOR Determination
 Date”) for such Distribution Payment Period), the Calculation Agent shall
 obtain the rate for three-month U.S. Dollar deposits in Europe, which appears
 on Telerate Page 3750 (as defined in the International Swaps and Derivatives
 Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) or
 such other page as may replace such Telerate Page 3750 on the Moneyline
 Telerate, Inc. service (or such other service or services as may be nominated
 by the British Banker’s Association as the information vendor for the purpose
 of displaying London interbank offered rates for U.S. dollar deposits), as of
 11:00 a.m. (London time) on such LIBOR Determination Date, and the rate so
 obtained shall be LIBOR for such Distribution Payment Period. “LIBOR Business
 Day” means any day that is not a Saturday, Sunday or other day on which
 commercial banking institutions in The City of New York or Wilmington,
 Delaware are authorized or obligated by law or executive order to be closed.
 If such rate is superseded on Telerate Page 3750 by a corrected rate before
 12:00 noon (London time) on the same LIBOR Determination Date, the corrected
 rate as so substituted will be the applicable LIBOR for that Distribution
 Payment Period.

 
	
  

 	
  

 
	
  

 	
           (2)     If,
 on any LIBOR Determination Date, such rate does not appear on Telerate Page
 3750 or such other page as may replace such Telerate Page 3750 on the
 Moneyline Telerate, Inc. service (or such other service or services as may be
 nominated by the British Banker’s Association as the information vendor for
 the purpose of displaying London interbank offered rates for U.S. dollar
 deposits), the Calculation Agent shall determine the arithmetic mean of the
 offered quotations of the Reference Banks (as defined below) to leading banks
 in the London Interbank market for three-month U.S. Dollar deposits in Europe
 (in an amount determined by the Calculation Agent) by reference to requests
 for quotations as of approximately 11:00 a.m. (London time) on the LIBOR
 Determination Date made by the Calculation Agent to the Reference Banks. If,
 on any LIBOR Determination Date, at least two of the Reference Banks provide
 such 

 

A-I-2

	
  

 	
  

 
	
  

 	
 quotations, LIBOR shall equal the arithmetic mean of such quotations.
 If, on any LIBOR Determination Date, only one or none of the Reference Banks
 provide such a quotation, LIBOR shall be deemed to be the arithmetic mean of
 the offered quotations that at least two leading banks in the City of New
 York (as selected by the Calculation Agent) are quoting on the relevant LIBOR
 Determination Date for three-month U.S. Dollar deposits in Europe at
 approximately 11:00 a.m. (London time) (in an amount determined by the
 Calculation Agent). As used herein, “Reference Banks” means four major banks
 in the London Interbank market selected by the Calculation Agent.

 
	
  

 	
  

 
	
  

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

 

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

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

          (e)     Distributions
on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of Distribution payment
periods as described herein, quarterly in arrears on January 7, April 7, July 7
and October 7 of each year, commencing October 7, 2006 (each, a “Distribution
Payment Date”). Subject to prior submission of Notice (as defined in the
Indenture), and so long as no Event of Default pursuant to paragraphs (c), (e),
(f) or (g) of Section 5.01 of the Indenture has occurred and is continuing, the
Debenture Issuer has the right under the Indenture to defer payments of
interest on the Debentures by extending the interest distribution period for up
to 20 consecutive quarterly periods (each, an “Extension Period”) at any time
and from time to time on the Debentures, subject to the conditions described
below, during which Extension Period no interest shall be due and payable
(except any Additional Interest that may be due and payable). During any
Extension Period, interest will continue to accrue on the Debentures, and
interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal
to the Coupon Rate in effect for each such Extension Period, compounded
quarterly from the date such Deferred Interest would have been payable were it
not for the 

A-I-3

Extension Period, to the extent permitted by law. No Extension Period
may end on a date other than a Distribution Payment Date. At the end of any
such Extension Period, the Debenture Issuer shall pay all Deferred Interest
then accrued and unpaid on the Debentures; provided, however,
that no Extension Period may extend beyond the Maturity Date, Redemption Date
(to the extent redeemed) or Special Redemption Date and provided, further,
that, during any such Extension Period, the Debenture Issuer may not (i)
declare or pay any dividends or distributions on, or redeem, purchase, acquire,
or make a liquidation payment with respect to, any of the Debenture Issuer’s
capital stock or (ii) make any payment of principal or premium or interest on
or repay, repurchase or redeem any debt securities of the Debenture Issuer that
rank pari passu in all respects
with or junior in interest to the Debentures or (iii) make any payment under
any guarantees of the Debenture Issuer that rank in all respects pari passu with or junior in interest to
the Guarantee (other than (a) repurchases, redemptions or other acquisitions of
shares of capital stock of the Debenture Issuer (A) in connection with any
employment contract, benefit plan or other similar arrangement with or for the
benefit of one or more employees, officers, directors or consultants, (B) in
connection with a dividend reinvestment or stockholder stock purchase plan or
(C) in connection with the issuance of capital stock of the Debenture Issuer
(or securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of any exchange, reclassification,
combination or conversion of any class or series of the Debenture Issuer’s
capital stock (or any capital stock of a subsidiary of the Debenture Issuer)
for any class or series of the Debenture Issuer’s capital stock or of any class
or series of the Debenture Issuer’s indebtedness for any class or series of the
Debenture Issuer’s capital stock, (c) the purchase of fractional interests in
shares of the Debenture Issuer’s capital stock pursuant to the conversion or
exchange provisions of such capital stock or the security being converted or
exchanged, (d) any declaration of a dividend in connection with any
stockholder’s rights plan, or the issuance of rights, stock or other property
under any stockholder’s rights plan, or the redemption or repurchase of rights
pursuant thereto, 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). Prior to the termination of any Extension
Period, the Debenture Issuer may further extend such period; provided,
that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend
beyond the Maturity Date. Upon the termination of any Extension Period and upon
the payment of all Deferred Interest, the Debenture Issuer may commence a new
Extension Period, subject to the foregoing requirements. No interest or
Deferred Interest shall be due and payable during an Extension Period, except
at the end thereof, but Deferred Interest shall accrue upon each installment of
interest that would otherwise have been due and payable during such Extension
Period until such installment is paid. If Distributions are deferred, the
Distributions due shall be paid on the date that the related Extension Period
terminates, or, if such date is not a Distribution Payment Date, on the
immediately following Distribution Payment Date, to Holders of the Securities
as they appear on the books and records of the Trust on the record date
immediately preceding such date. Distributions on the Securities must be paid
on the dates payable (after giving effect to any Extension Period) to the
extent that the Trust has funds legally available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available
for Distribution to the Holders of the Securities will be limited to payments
received 

A-I-4

from the Debenture Issuer. The payment of Distributions out of moneys
held by the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

          (f)     Distributions
on the Securities will be payable to the Holders thereof as they appear on the
books and records of the Registrar on the relevant record dates. The relevant
record dates shall be selected by the Administrators, which dates shall be 15
days before the relevant Distribution Payment Date. Distributions payable on
any Securities that are not punctually paid on any Distribution Payment Date,
as a result of the Debenture Issuer having failed to make a payment under the
Debentures, as the case may be, when due (taking into account any Extension
Period), will cease to be payable to the Person in whose name such Securities
are registered on the relevant record date, and such defaulted Distribution
will instead be payable to the Person in whose name such Securities are
registered on the special record date or other specified date determined in
accordance with the Indenture. Notwithstanding anything to the contrary
contained herein, if any Distribution Payment Date, other than on the Maturity
Date, Redemption Date or Special Redemption Date, falls on a day that is not a
Business Day, then any Distributions payable will be paid on, and such
Distribution Payment Date will be moved to, the next succeeding Business Day,
and additional Distributions will accrue for each day that such payment is
delayed as a result thereof. If the Maturity Date, Redemption Date or Special
Redemption Date falls on a day that is not a Business Day, then the principal, premium,
if any, and/or Distributions payable on such date will be paid on the next
preceding Business Day (except that, if such Business Day falls in the next
calendar year, such payment will be made on the immediately preceding Business
Day).

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

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

          The
Sponsor, as the Holder of all of the Common Securities, has the right at any
time to dissolve the Trust (including without limitation upon the occurrence of
a Tax Event, an Investment Company Event or a Capital Treatment Event), subject
to the receipt by the Debenture Issuer of prior approval from any regulatory
authority having jurisdiction over the 

A-I-5

Sponsor that is primarily responsible for regulating the activities of
the Sponsor if such approval is then required under applicable capital
guidelines or policies of such regulatory authority, an opinion of nationally
recognized tax counsel that Holders will not recognize any gain or loss for
United States federal income tax purposes as a result of the distribution of
Debentures and, after satisfaction of liabilities to creditors of the Trust,
cause the Debentures to be distributed to the Holders of the Securities on a
Pro Rata basis in accordance with the aggregate stated liquidation amount
thereof.

          The Trust
shall dissolve on the first to occur of (i) July 7, 2041, the expiration of the
term of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor, the
Trust or the Debenture Issuer, (iii) (other than in connection with a merger,
consolidation or similar transaction not prohibited by the Indenture, this
Declaration or the Guarantee, as the case may be) the filing of a certificate
of dissolution or its equivalent with respect to the Sponsor or upon the
revocation of the charter of the Sponsor and the expiration of 90 days after
the date of revocation without a reinstatement thereof, (iv) the distribution
to the Holders of the Securities of the Debentures, upon exercise of the right
of the Holder of all of the outstanding Common Securities to dissolve the Trust
as described above, (v) the entry of a decree of a judicial dissolution of the
Sponsor or the Trust, or (vi) when all of the Securities shall have been called
for redemption and the amounts necessary for redemption thereof shall have been
paid to the Holders in accordance with the terms of the Securities. As soon as
practicable after the dissolution of the Trust and upon completion of the
winding up of the Trust, the Trust shall terminate upon the filing of a certificate
of cancellation with the Secretary of State of the State of Delaware.

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

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

          Upon any
such Liquidation of the Trust involving a distribution of the Debentures, if at
the time of such Liquidation, the Capital Securities were rated by at least one
nationally-

A-I-6

recognized statistical rating organization, the Debenture Issuer will
use its reasonable best efforts to obtain from at least one such or other
rating organization a rating for the Debentures.

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

          4.      Redemption
and Distribution. 

          (a)     The
Debentures will mature on July 7, 2036. The Debentures may be redeemed by the
Debenture Issuer, in whole or in part, on any January 7, April 7, July 7 or October
7 on or after July 7, 2011 at the Redemption Price, upon not less than 30 nor
more than 60 days’ notice to Holders of such Debentures. In addition, upon the
occurrence and continuation of a Tax Event, an Investment Company Event or a
Capital Treatment Event, the Debentures may be redeemed by the Debenture Issuer
in whole or in part, at any time within 90 days following the occurrence of
such Tax Event, Investment Company Event or Capital Treatment Event, as the
case may be (the “Special Redemption Date”), at the Special Redemption Price,
upon not less than 30 nor more than 60 days’ notice to Holders of the
Debentures so long as such Tax Event, Investment Company Event or Capital
Treatment Event, as the case may be, is continuing. In each case, the right of
the Debenture Issuer to redeem the Debentures is subject to the Debenture
Issuer having received prior approval from any regulatory authority having
jurisdiction over the Debenture Issuer, if such approval is then required under
applicable capital guidelines or policies of such regulatory authority.

          “Tax Event”
means the receipt by the Debenture Issuer and the Trust of an opinion of
counsel experienced in such matters to the effect that, as a result of any
amendment to or change (including any announced prospective change) in the laws
or any regulations thereunder of the United States or any political subdivision
or taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical
advice memorandum, regulatory procedure, notice or announcement) (an
“Administrative Action”) or judicial decision interpreting or applying such
laws or regulations, regardless of whether such Administrative Action or
judicial decision is issued to or in connection with a proceeding involving the
Debenture Issuer or the Trust and whether or not subject to review or appeal,
which amendment, clarification, change, Administrative Action or decision is
enacted, promulgated or announced, in each case on or after the date of original
issuance of the Debentures, there is more than an insubstantial risk that: (i)
the Trust is, or will be within 90 days of the date of such opinion, subject to
United States federal income tax with respect to income received or accrued on
the Debentures; (ii) interest payable by the Debenture Issuer on the 

A-I-7

Debentures is not, or within 90 days of the date of such opinion, will
not be, deductible by the Debenture Issuer, in whole or in part, for United
States federal income tax purposes; or (iii) the Trust is, or will be within 90
days of the date of such opinion, subject to more than a de minimis amount of
other taxes (including withholding taxes), duties, assessments or other
governmental charges.

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

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

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

          “Redemption
Price” means 100% of the principal amount of the Debentures being redeemed plus
accrued and unpaid interest on such Debentures to the Redemption Date or, in
the case of a redemption due to the occurrence of a Special Event, to the
Special Redemption Date if such Special Redemption Date is on or after July 7,
2010. 

A-I-8

                    “Special
Redemption Price” means, with respect to the redemption of Capital Securities
following a Special Event, an amount in cash equal to 104% of the principal
amount of Capital Securities to be redeemed prior to July 7, 2007 and thereafter
equal to the percentage of the principal amount of the Capital Securities that
is specified below for the Special Redemption Date plus, in each case, unpaid
interest accrued thereon to the Special Redemption Date: 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Special
Redemption During the  

 	
  

 	
  

 	
  

 
	
  

 	
 12-Month
Period Beginning July 7 

 	
  

 	
 Percentage
of Principal Amount 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2007

 	
  

 	
 103%

 	
  

 
	
  

 	
 2008

 	
  

 	
 102%

 	
  

 
	
  

 	
 2009

 	
  

 	
 101%

 	
  

 
	
  

 	
 2010 and
 thereafter

 	
  

 	
 100%

 	
  

 

          “Redemption
Date” means the date fixed for the redemption of Capital Securities, which
shall be any January 7, April 7, July 7 or October 7 on or after July 7, 2011. 

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

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

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

          (e)     Redemption
or Distribution Procedures.

	
  

 	
  

 
	
  

 	
           (i)      Notice
 of any redemption of, or notice of distribution of the Debentures in exchange
 for, the Securities (a “Redemption/Distribution Notice”) will be given by the
 Trust by mail to each Holder of Securities to be redeemed or exchanged not
 fewer than 30 nor more than 60 days before the date fixed for redemption or
 exchange thereof which, in the case of a redemption, will be the date fixed
 for redemption of the Debentures. For purposes of the calculation of the date
 of redemption or exchange and the dates on which notices are given pursuant
 to this Section 4(e)(i), a Redemption/Distribution Notice shall be deemed to
 be given on the day such notice is first mailed by first-class mail, postage
 prepaid, to Holders of such Securities. Each Redemption/Distribution Notice
 shall be addressed to the Holders of such Securities at the address of each
 such Holder 

 

A-1-9

	
  

 	
  

 
	
  

 	
 appearing on the books and records of the Registrar. No defect in the
 Redemption/Distribution Notice or in the mailing thereof with respect to any
 Holder shall affect the validity of the redemption or exchange proceedings
 with respect to any other Holder.

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

A-I-10

	
  

 	
  

 
	
  

 	
 register the transfer of or exchange any Security during a period
 beginning at the opening of business 15 days before any selection for
 redemption of the Capital Securities and ending at the close of business on
 the earliest date on which the relevant notice of redemption is deemed to
 have been given to all Holders of the Capital Securities to be so redeemed or
 (ii) register the transfer of or exchange any Capital Securities so selected
 for redemption, in whole or in part, except for the unredeemed portion of any
 Capital Securities being redeemed in part.

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

          5.     Voting
Rights - Capital Securities.

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

          (b)     Subject
to the requirements of obtaining a tax opinion by the Institutional Trustee in
certain circumstances set forth in the last sentence of this paragraph, the
Holders of a Majority in liquidation amount of the Capital Securities, voting
separately as a class, have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Institutional
Trustee, or exercising any trust or power conferred upon the Institutional
Trustee under the Declaration, including the right to direct the Institutional
Trustee, as holder of the Debentures, to (i) exercise the remedies available
under the Indenture as the holder of the Debentures, (ii) waive any past
default that is waivable under the Indenture, (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall
be due and payable or (iv) consent on behalf of all the Holders of the Capital
Securities to any amendment, modification or termination of the Indenture or
the Debentures where such consent shall be required; provided, however,
that, where a consent or action under the Indenture would require the consent
or act of the holders of greater than a simple majority in principal amount of
Debentures (a “Super Majority”) affected thereby, the Institutional Trustee may
only give such consent or take such action at the written direction of the
Holders of not less than the proportion in liquidation amount of the Capital
Securities outstanding which the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding. If the Institutional
Trustee fails to enforce its rights under the Debentures after the Holders of a
Majority or Super Majority, as the case may be, in liquidation amount of such
Capital Securities have so directed the Institutional Trustee, to the fullest
extent permitted by law, a Holder of the Capital Securities 

A-I-11

may institute a legal proceeding directly against the Debenture Issuer
to enforce the Institutional Trustee’s rights under the Debentures without
first instituting any legal proceeding against the Institutional Trustee or any
other person or entity. Notwithstanding the foregoing, if an Event of Default
has occurred and is continuing and such event is attributable to the failure of
the Debenture Issuer to pay interest or premium, if any, on or principal of the
Debentures on the date such interest, premium, if any, on or principal is
payable (or in the case of redemption, the redemption date), then a Holder of
record of the Capital Securities may directly institute a proceeding for
enforcement of payment, on or after the respective due dates specified in the
Debentures, to such Holder directly of the principal of or premium, if any, or
interest on the Debentures having an aggregate principal amount equal to the
aggregate liquidation amount of the Capital Securities of such Holder. The
Institutional Trustee shall notify all Holders of the Capital Securities of any
default actually known to the Institutional Trustee with respect to the
Debentures unless (x) such default has been cured prior to the giving of such
notice or (y) the Institutional Trustee determines in good faith that the
withholding of such notice is in the interest of the Holders of such Capital
Securities, except where the default relates to the payment of principal of or
interest on any of the Debentures. Such notice shall state that such Indenture
Event of Default also constitutes an Event of Default hereunder. Except with
respect to directing the time, method and place of conducting a proceeding for
a remedy, the Institutional Trustee shall not take any of the actions described
in clause (i), (ii) or (iii) above unless the Institutional Trustee has
obtained an opinion of tax counsel to the effect that, as a result of such
action, the Trust will not be classified as other than a grantor trust for
United States federal income tax purposes.

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

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

A-I-12

proposed for adoption at such meeting on which such Holders are
entitled to vote or of such matter upon which written consent is sought and
(iii) instructions for the delivery of proxies or consents. No vote or consent
of the Holders of the Capital Securities will be required for the Trust to
redeem and cancel Capital Securities or to distribute the Debentures in
accordance with the Declaration and the terms of the Securities.

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

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

          6.     Voting
Rights - Common Securities.

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

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

          (c)     Subject
to Section 6.8 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived or otherwise
eliminated and subject to the requirements of the second to last sentence of
this paragraph, the Holders of a Majority in liquidation amount of the Common
Securities, voting separately as a class, may direct the time, method, and
place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including (i) directing the time,
method, place of conducting any proceeding for any remedy available to the Debenture
Trustee, or exercising any trust or power conferred on the Debenture Trustee
with respect to the Debentures, (ii) waiving any past default and its
consequences that are waivable under the Indenture, or (iii) exercising any
right to rescind or annul a declaration that the principal of all the
Debentures shall be due and payable, provided, however, that, where a consent
or action under the Indenture would require a Super Majority, the Institutional
Trustee may only give such consent or take such action at the written direction
of the Holders of not less than the proportion in liquidation amount of the
Common Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding. Notwithstanding this Section
6(c), the Institutional Trustee shall not revoke any action previously
authorized or approved by a vote or consent of the Holders of the Capital
Securities. Other than with respect to directing the time, method and place of
conducting any proceeding for any remedy available to the Institutional Trustee
or the Debenture Trustee as set forth above, the Institutional Trustee shall
not take any action described in clause (i), (ii) or (iii) above, unless the
Institutional Trustee has obtained an opinion of tax counsel to the effect 

A-I-13

that for the purposes of United States federal income tax the Trust
will not be classified as other than a grantor trust on account of such action.
If the Institutional Trustee fails to enforce its rights under the Declaration,
to the fullest extent permitted by law any Holder of the Common Securities may
institute a legal proceeding directly against any Person to enforce the
Institutional Trustee’s rights under the Declaration, without first instituting
a legal proceeding against the Institutional Trustee or any other Person.

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

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

          7.     Amendments
to Declaration and Indenture.

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

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

A-I-14

less than the proportion in liquidation amount of the Securities which
the relevant Super Majority represents of the aggregate principal amount of the
Debentures outstanding.

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

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

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

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

A-I-15

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

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

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

A-I-16

EXHIBIT A-1

FORM OF CAPITAL SECURITY CERTIFICATE

[FORM OF FACE OF SECURITY]

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

          UNLESS THIS
CAPITAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO CVB
STATUTORY TRUST NO. 2 OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CAPITAL SECURITY ISSUED IS REGISTERED AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

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

A-1-1

ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN “ACCREDITED INVESTOR,” FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE DEBENTURE ISSUER’S AND THE TRUST’S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE AMENDED AND RESTATED
DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE DEBENTURE ISSUER
OR THE TRUST. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT
IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

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

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

A-1-2

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

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

A-1-3

	
 

	
 

	
 

	
Certificate Number 

	
[P-001]

	
Number of Capital Securities 7,000

CUSIP NO: _______________

Certificate Evidencing Capital Securities

of

CVB Statutory Trust No. 2

Capital Securities

(liquidation amount $1,000 per Capital
Security)

          CVB
Statutory Trust No. 2, a statutory trust created under the laws of the State of
Delaware (the “Trust”), hereby certifies that Cede & Co., as nominee on
behalf of The Depository Trust Company (the “Holder”), is the registered owner
of 7,000 capital securities of the Trust representing undivided beneficial
interests in the assets of the Trust, designated the capital securities
(liquidation amount $1,000 per Capital Security) (the “Capital Securities”).
Subject to the Declaration (as defined below), the Capital Securities are
transferable on the books and records of the Trust, in person or by a duly
authorized attorney, upon surrender of this Certificate duly endorsed and in
proper form for transfer. The Capital Securities represented hereby are issued
pursuant to, and the designation, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities shall in all respects
be subject to, the provisions of the Amended and Restated Declaration of Trust
of the Trust, dated as of June 28, 2006, among Larry J. Miller and Jann A.
Weaver, as Administrators, Wells Fargo Delaware Trust Company, as Delaware
Trustee, Wells Fargo Bank, National Association, as Institutional Trustee, Codorus
Valley Bancorp, Inc., as Sponsor, and the holders from time to time of
undivided beneficial interests in the assets of the Trust, including the
designation of the terms of the Capital Securities as set forth in Annex I to
the Declaration, as the same may be amended from time to time (the
“Declaration”). Capitalized terms used herein but not defined shall have the
meaning given them in the Declaration. The Holder is entitled to the benefits
of the Guarantee to the extent provided therein. The Sponsor will provide a
copy of the Declaration, the Guarantee, and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of business.

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

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

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

A-1-4

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

	
 

	
 

	
 

	
 

	
 

	
 

	
CVB
Statutory Trust No. 2

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	
Name: 

	
 

	
 

	
 

	
Title:
Administrator

	
 

	
 

	
 

	
 

	
Dated:

	
 

CERTIFICATE OF AUTHENTICATION

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

	
 

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, NATIONAL 

ASSOCIATION,

	
 

	
not in its
individual capacity but solely as the

Institutional Trustee

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	
Authorized
Officer

	
 

	
 

	
 

	
 

	
Dated

	
 

A-1-5

[FORM OF REVERSE OF SECURITY]

          Distributions
payable on each Capital Security will be payable at a variable per annum rate
of interest, reset quarterly, equal to LIBOR (as defined in the Declaration)
plus 1.54% (the “Coupon Rate”) of the stated liquidation amount of $1,000 per
Capital Security (provided, however, that the Coupon Rate for any Distribution
Payment Period may not exceed the highest rate permitted by New York law, as
the same may be modified by United States law of general applicability), such
Coupon Rate being the rate of interest payable on the Debentures to be held by
the Institutional Trustee. Distributions in arrears for more than one quarterly
period will bear interest thereon compounded quarterly at the then applicable
Coupon Rate for each such quarterly period (to the extent permitted by
applicable law). The term “Distributions” as used herein includes cash
distributions, any such compounded distributions and any Additional Interest
payable on the Debentures unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year and the actual number of days elapsed in
the relevant Distribution Payment Period.

          Except as
otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on January 7, April 7, July 7 and October 7 of each year,
commencing on October 7, 2006 (each, a “Distribution Payment Date”). Upon
submission of Notice and so long as no Event of Default pursuant to paragraphs
(c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is
continuing, the Debenture Issuer has the right under the Indenture to defer payments
of interest on the Debentures by extending the interest distribution period for
up to 20 consecutive quarterly periods (each, an “Extension Period”) at any
time and from time to time on the Debentures, subject to the conditions
described below, during which Extension Period no interest shall be due and
payable (except any Additional Interest that may be due and payable). During
any Extension Period, interest will continue to accrue on the Debentures, and
interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal
to the Coupon Rate in effect for each such Extension Period, compounded
quarterly from the date such Deferred Interest would have been payable were it
not for the Extension Period, to the extent permitted by law. No Extension
Period may end on a date other than a Distribution Payment Date. At the end of
any such Extension Period, the Debenture Issuer shall pay all Deferred Interest
then accrued and unpaid on the Debentures; provided, however,
that no Extension Period may extend beyond the Maturity Date, Redemption Date
(to the extent redeemed) or Special Redemption Date. Prior to the termination
of any Extension Period, the Debenture Issuer may further extend such period, provided,
that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend
beyond the Maturity Date, Redemption Date (to the extent redeemed) or Special
Redemption Date. Upon the termination of any Extension Period and upon the
payment of all Deferred Interest, the Debenture Issuer may commence a new
Extension Period, subject to the foregoing requirements. No interest or
Deferred Interest (except any Additional Interest that may be due and payable)
shall be due and payable during an Extension Period, except at the end thereof,
but Deferred Interest shall accrue upon each installment of interest that would
otherwise have been due and payable during such Extension Period until such 

A-1-6

installment is paid. If Distributions are deferred, the Distributions
due shall be paid on the date that the related Extension Period terminates to
Holders of the Securities as they appear on the books and records of the Trust
on the record date immediately preceding such date. Distributions on the
Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for
the payment of such distributions in the Property Account of the Trust. The
Trust’s funds available for Distribution to the Holders of the Securities will
be limited to payments received from the Debenture Issuer. The payment of
Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

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

A-1-7

ASSIGNMENT

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

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 

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

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 

(Insert
address and zip code of assignee),

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Date:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Signature:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
  

 	
 Signature
 Guarantee:1

 	
  

 	
  

 

	
  

 	
  

 
	
  

 	
  

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

 

A-1-8

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

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

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

A-2-1

	
  

 	
  

 	
  

 
	
 Certificate
 Number

 	
 [C-001]

 	
 Number of Common
 Securities 217

 

Certificate Evidencing Common Securities

of

CVB Statutory Trust No. 2

          CVB
Statutory Trust No. 2, a statutory trust created under the laws of the State of
Delaware (the “Trust”), hereby certifies that Codorus Valley Bancorp, Inc. (the
“Holder”) is the registered owner of 217 common securities of the Trust
representing undivided beneficial interests in the assets of the Trust
(liquidation amount $1,000 per Common Security) (the “Common Securities”). The
Common Securities represented hereby are issued pursuant to, and the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of June 28, 2006, among Larry J. Miller and Jann A. Weaver, as
Administrators, Wells Fargo Delaware Trust Company, as Delaware Trustee, Wells
Fargo Bank, National Association, as Institutional Trustee, the Holder, as
Sponsor, and the holders from time to time of undivided beneficial interests in
the assets of the Trust, including the designation of the terms of the Common
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the “Declaration”). Capitalized terms used herein
but not defined shall have the meaning given them in the Declaration. The
Sponsor will provide a copy of the Declaration and the Indenture to the Holder
without charge upon written request to the Sponsor at its principal place of
business.

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

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

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

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

A-2-2

          IN
WITNESS WHEREOF, the Trust has executed this certificate as of this ________
day of __________, 2006.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CVB Statutory
 Trust No. 2

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Name:

 	
   

 
	
  

 	
  

 	
 Title:   Administrator

 

A-2-3

[FORM OF REVERSE OF SECURITY]

          Distributions
payable on each Common Security will be identical in amount to the
Distributions payable on each Capital Security, which is at a variable per
annum rate of interest, reset quarterly, equal to LIBOR (as defined in the
Declaration) plus 1.54% (the “Coupon Rate”) of the stated liquidation amount of
$1,000 per Capital Security (provided, however, that the Coupon Rate for any Distribution
Payment Period may not exceed the highest rate permitted by New York law, as
the same may be modified by United States law of general applicability), such
Coupon Rate being the rate of interest payable on the Debentures to be held by
the Institutional Trustee. Distributions in arrears for more than one quarterly
period will bear interest thereon compounded quarterly at the then applicable
Coupon Rate for each such quarterly period (to the extent permitted by
applicable law). The term “Distributions” as used herein includes cash
distributions, any such compounded distributions and any Additional Interest
payable on the Debentures unless otherwise stated. A Distribution is payable
only to the extent that payments are made in respect of the Debentures held by
the Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any period will be computed for any full quarterly Distribution
period on the basis of a 360-day year and the actual number of days elapsed in
the relevant Distribution Payment Period.

          Except as
otherwise described below, Distributions on the Common Securities will be
cumulative, will accrue from the date of original issuance and will be payable
quarterly in arrears on January 7, April 7, July 7 and October 7 of each year,
commencing on October 7, 2006 (each, a “Distribution Payment Date”). Upon
submission of Notice and so long as no Event of Default pursuant to paragraphs
(c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred and is
continuing, the Debenture Issuer has the right under the Indenture to defer
payments of interest on the Debentures by extending the interest distribution
period for up to 20 consecutive quarterly periods (each, an “Extension Period”)
at any time and from time to time on the Debentures, subject to the conditions
described below, during which Extension Period no interest shall be due and
payable (except any Additional Interest that may be due and payable). During
any Extension Period, interest will continue to accrue on the Debentures, and
interest on such accrued interest (such accrued interest and interest thereon
referred to herein as “Deferred Interest”) will accrue at an annual rate equal
to the Coupon Rate in effect for each such Extension Period, compounded
quarterly from the date such Deferred Interest would have been payable were it
not for the Extension Period, to the extent permitted by law. No Extension
Period may end on a date other than a Distribution Payment Date. At the end of
any such Extension Period, the Debenture Issuer shall pay all Deferred Interest
then accrued and unpaid on the Debentures; provided, however, that no Extension
Period may extend beyond the Maturity Date, Redemption Date (to the extent
redeemed) or Special Redemption Date. Prior to the termination of any Extension
Period, the Debenture Issuer may further extend such period, provided, that
such period together with all such previous and further consecutive extensions
thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the
Maturity Date, Redemption Date (to the extent redeemed) or Special Redemption
Date. Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Debenture Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest or Deferred Interest (except
any Additional Interest that may be due and payable) shall be due and payable
during an Extension Period, except at the end thereof, but Deferred Interest
shall accrue upon each installment of

A-2-4

interest that would otherwise have been due and payable during such
Extension Period until such installment is paid. If Distributions are deferred,
the Distributions due shall be paid on the date that the related Extension
Period terminates to Holders of the Securities as they appear on the books and
records of the Trust on the record date immediately preceding such date.

          Distributions
on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds legally available for
the payment of such distributions in the Property Account of the Trust. The
Trust’s funds legally available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer. The
payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee.

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

A-2-5

ASSIGNMENT

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

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 

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

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 

(Insert
address and zip code of assignee),

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Date:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Signature:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
  

 	
 Signature
 Guarantee:1

 	
  

 	
  

 

	
  

 	
  

 
	
  

 	
  

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

 

A-2-6

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