Document:

EXHIBIT 4.23

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                         CONTINGENT GUARANTEE AGREEMENT

                             Dated as of ____, ____

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                               TABLE OF CONTENTS

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                                                                           PAGE
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                                   ARTICLE 1
                         DEFINITIONS AND INTERPRETATION

Section 1.01.  Definitions And Interpretation..................................1

                                   ARTICLE 2
                              TRUST INDENTURE ACT

Section 2.01.  Trust Indenture Act; Application................................6
Section 2.02.  Lists of Holders of Securities..................................6
Section 2.03.  Reports by the Guarantee Trustee................................7
Section 2.04.  Periodic Reports to Guarantee Trustee...........................7
Section 2.05.  Evidence of Compliance with Conditions Precedent................7
Section 2.06.  Events of Default; Waiver.......................................7
Section 2.07.  Event of Default; Notice........................................7
Section 2.08.  Rights of Holders...............................................8
Section 2.09.  Conflicting Interests...........................................8

                                   ARTICLE 3
                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

Section 3.01.  Powers, Duties and Rights of Guarantee Trustee..................8
Section 3.02.  Certain Rights of Guarantee Trustee............................10
Section 3.03.  Not Responsible for Recitals or Issuance of Contingent
               Guarantee......................................................12

                                   ARTICLE 4
                               GUARANTEE TRUSTEE

Section 4.01.  Guarantee Trustee; Eligibility.................................12
Section 4.02.  Appointment, Removal and Resignation of  Guarantee Trustee.....13

                                   ARTICLE 5
                              CONTINGENT GUARANTEE

Section 5.01.  Contingent Guarantee...........................................14
Section 5.02.  Delivery of Guarantor's Certificate; Dividends Deemed
               Declared.......................................................15
Section 5.03.  Waiver of Notice and Demand....................................17
Section 5.04.  Obligations Not Affected.......................................17
Section 5.05.  Independent Obligations........................................18
Section 5.06.  Taxes..........................................................19

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                                   ARTICLE 6
                      LIMITATION OF TRANSACTIONS; RANKING

Section 6.01.  Limitation of Transactions.....................................19
Section 6.02.  Ranking........................................................20

                                   ARTICLE 7
                                  TERMINATION

Section 7.01.  Termination....................................................21

                                   ARTICLE 8
                                INDEMNIFICATION

Section 8.01.  Exculpation....................................................21
Section 8.02.  Indemnification................................................22

                                   ARTICLE 9
                                 MISCELLANEOUS

Section 9.01.  Successors and Assigns.........................................22
Section 9.02.  Amendments.....................................................22
Section 9.03.  Judgment Currency Indemnity....................................22
Section 9.04.  Assignment of the Contingent Guarantee.........................23
Section 9.05.  Notices........................................................23
Section 9.06.  Governing Law..................................................24
Section 9.07.  Jurisdiction...................................................24

EXHIBIT A  Guarantor's Officers' Certificate                                 A-1

                                      ii
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                            CROSS-REFERENCE TABLE(1)

       Section of Trust Indenture Act              Section of
             of 1939, as amended              Contingent Guarantee
310(a).....................................         4.01(a)
310(b).....................................      2.09, 4.01(c)
310(c).....................................       Inapplicable
311(a).....................................         2.02(b)
311(b).....................................         2.02(b)
311(c).....................................       Inapplicable
312(a).....................................         2.02(a)
312(b).....................................         2.02(b)
313........................................           2.03
314(a).....................................           2.04
314(b).....................................       Inapplicable
314(c).....................................           2.05
314(d).....................................       Inapplicable
314(f).....................................       Inapplicable
315(a).....................................     3.01(c), 3.01(d)
315(b).....................................           2.07
315(c).....................................         3.01(c)
315(d).....................................         3.01(d)
316(a).....................................           2.08

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      (1) This Cross-Reference Table does not constitute part of the Contingent
Guarantee and shall not affect the interpretation of any of its terms or
provisions.

                                      iii
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      THIS CONTINGENT GUARANTEE AGREEMENT (the "Contingent Guarantee") dated as
of [DATE], is executed and delivered by ABN AMRO [BANK][HOLDING] N.V., a public
limited liability company incorporated under the laws of The Netherlands (the
"Guarantor"), ABN AMRO CAPITAL FUNDING LLC [____], a Delaware limited liability
company (the "Company") and [________], a [________] corporation, as trustee
(the "Guarantee Trustee").

      WHEREAS, pursuant to a Limited Liability Company Agreement (the "LLC
Agreement"), dated as of [DATE], among the Initial Common Securityholder (as
defined therein), [the Class A Preferred Securityholder], the Initial Purchaser
(as defined therein) and [___________], as manager trustee, the Company is
issuing on the date hereof [____] Noncumulative Guaranteed Class B Preferred
Securities, having an aggregate liquidation amount of $[______], designated the
[____]% Noncumulative Guaranteed Class B Preferred Securities (the "Class B
Preferred Securities"); and

      WHEREAS, the Guarantor will agree in the Class B Preferred Securities
Guarantee Agreement (the "Class B Preferred Securities Guarantee" between the
Guarantor, [________] as the initial holder of the Class B Preferred
Securities, and the Guarantee Trustee, to pay in full, on a subordinated basis,
without duplication, to the holders of the Class B Preferred Securities the
Guarantee Payments (as defined in the Class B Preferred Securities Guarantee)
to the extent set forth in the Class B Preferred Securities Guarantee; and

      WHEREAS, as incentive for the Holders (as defined herein) to purchase the
Class B Preferred Securities and, if applicable, the Trust Securities (as
defined herein), the Guarantor desires irrevocably and unconditionally to
agree, to the extent set forth in this Contingent Guarantee, to pay to the
Company in full the Guarantee Payments (as defined herein), to the extent that
any such Guarantee Payments have been claimed under either of the Guarantees
but remain unpaid.

      NOW, THEREFORE, in consideration of the purchase by each Holder of the
Class B Preferred Securities and, if applicable, the Trust Securities (as
defined herein), which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Contingent Guarantee for
the benefit of the Company.

                                   ARTICLE 1
                         DEFINITIONS AND INTERPRETATION

      Section 1.01. Definitions And Interpretation. In this Contingent
Guarantee, unless the context otherwise requires:

      (a) capitalized terms used in this Contingent Guarantee but not defined
in the preamble above have the respective meanings assigned to them in this
Section 1.01;

<PAGE>

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

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

      (d) all references in this Contingent Guarantee to Articles and Sections
are to Articles and Sections of this Contingent Guarantee, unless otherwise
specified;

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

      "Additional Amounts" means an amount paid as further Dividends in order
that the net amounts received by the Holders of Class B Preferred Securities
after withholding or deduction of any Relevant Tax required by law equals the
amount which would have been received in respect of the Class B Preferred
Securities in the absence of such withholding or deduction, except that no
Additional Amounts are payable to a Holder of Class B Preferred Securities (or
to a third party on the Holder's behalf) with respect to any Class B Preferred
Securities (i) to the extent that such Relevant Tax is imposed or levied by
virtue of such Holder (or the beneficial owner of such securities) having some
connection with the Relevant Jurisdiction, other than being a Holder (or
beneficial owner) of such securities, (ii) to the extent that such Tax is
imposed or levied by virtue of such Holder (or beneficial owner) not having
made a declaration of non-residence in, or other lack of connection with, the
Relevant Jurisdiction or any similar claim for exemption, if the Guarantor or
its agent has provided the beneficial owner of such Class B Preferred Security
or its nominee with at least 60 days' prior written notice of an opportunity to
make such a declaration or claim, or (iii) where such withholding or deduction
is imposed on a payment to an individual and is required to be made pursuant to
any European Union Directive on the taxation of savings implementing the
conclusions of the ECOFIN Council meeting of 26-27 November 2000 or any law
implementing or complying with, or introduced in order to conform to, [or
substantially similar to] such Directive.

      "Administrative Action" means any judicial decision, official
administrative pronouncement, published or private ruling, regulatory
procedure, notice or announcement (including any notice or announcement of
intent to adopt such procedures or regulations).

      "Affiliate" means, with respect to any specified person, any other person
that directly or indirectly controls or is controlled by, or is under common
control with, such specified person.

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

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<PAGE>

      "Bank" means ABN AMRO Bank N.V.

      "Class A Preferred Securities" means the Class A Preferred Securities of
the Company.

      "Company Common Securities" means the voting common securities
representing ownership interests in the Company.

      "Company Securities" means the Class A Preferred Securities, the Class B
Preferred Securities or the Company Common Securities.

      "Corporate Trust Office" means the principal trust office of the
Guarantee Trustee at which, at any particular time, its corporate trust
business shall be administered, which office at the date hereof is located at
[ADDRESS], Attention: [____].

      "Covered Person" means any Holder or beneficial owner of Class B
Preferred Securities and, if applicable, Trust Securities.

      "Dividends" means cash income distributions with respect to the Class B
Preferred Securities.

      "Dividend Date" means the last day of each [MONTH], [MONTH], [MONTH] and
[MONTH] of each year.

      "Dividend Period" means each period beginning on the date of original
issuance of the Class B Preferred Securities or on a Dividend Date and ending
on the day that precedes the next succeeding Dividend Date.

      "Dividend Rate" means [____]% per annum.

      "Event of Default" means a default by the Guarantor on any of its payment
or other obligations under this Contingent Guarantee.

      "Guarantees" means the Class B Preferred Securities Guarantee and the
Trust Securities Guarantee.

      "Guarantee Trustee" means [________], until a Successor Guarantee Trustee
has been appointed and has accepted such appointment pursuant to the terms of
this Contingent Guarantee by executing a counterpart hereof and becoming a
party hereto, and thereafter means each such Successor Guarantee Trustee.

      "Holder" shall mean any holder, as registered on the books and records of
the Company or a Trust, if applicable, of any Class B Preferred Securities or
Trust Securities.

      "Holding" means ABN AMRO Holding N.V.

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<PAGE>

      "Indemnified Person" means the Guarantee Trustee, any Affiliate of the
Guarantee Trustee, or any officer, director, shareholder, member, partner,
employee, representative, nominee, custodian or agent of the Guarantee Trustee.

      "Initial Intercompany Security" means the [SECURITY] issued by the
[ISSUER OF INITIAL INTERCOMPANY SECURITY].

      "Intercompany Securities" means the Initial Intercompany Security and,
upon maturity or redemption thereof, any successor intercompany securities that
will constitute the assets of the Company.

      "Investment Company Event" means, in the event that the Holder of the
Class B Preferred Securities is a Trust, that the Guarantor shall have
requested and received an opinion of a nationally recognized U.S. law firm
experienced in such matters to the effect that there is more than an
insubstantial risk that the Trust is or will be considered an "investment
company" within the meaning of the U.S. Investment Company Act of 1940, as
amended from time to time, or any successor legislation (the "1940 Act") as a
result of (i) any judicial decision, any pronouncement or interpretation
(irrespective of the manner made known), the adoption or amendment of any law,
rule or regulation, any notice or announcement (including any notice or
announcement of intent to adopt such rule or regulation) by any U.S.
legislative body, court, governmental agency or regulatory authority after the
date hereof or (ii) any change after the date hereof in the laws of The
Netherlands relating to the enforceability of either of the Guarantees
thereunder, as confirmed in an opinion of a nationally recognized Dutch law
firm experienced in such matters.

      "Officers' Certificate" means, with respect to any Person, a certificate
signed by two Authorized Officers of such Person.

      "Ordinary Shares" means the ordinary shares of the Guarantor, any other
shares of the Guarantor's capital stock ranking junior to the Parity Preferred
Shares, if any, and any guarantees of the Guarantor ranking junior to the
Parity Guarantees and this Contingent Guarantee.

      "Parity Guarantee" means [SPECIFIC GUARANTEES], and any other guarantee
issued by the Guarantor of any preferred securities or preferred or preference
shares issued by any subsidiary of the Guarantor, if such guarantee ranks pari
passu with the Guarantor's obligations under this Contingent Guarantee.

      "Parity Preferred Shares" means the most senior ranking preferred or
preference shares issued by the Guarantor.

      "Parity Securities" means, collectively, the Parity Guarantees, the
Parity Preferred Shares and the Parity Subsidiary Securities.

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<PAGE>

      "Parity Subsidiary Securities" means any securities issued by a
subsidiary of the Guarantor guaranteed by the Guarantor under a Parity
Guarantee.

      "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.

      "Qualified Subsidiaries" means one or more subsidiaries of Holding or the
Bank which are deemed to be a "company controlled by the parent company" under
Rule 3a-5, as amended, of the 1940 Act.

      "Relevant Jurisdiction" means The Netherlands and, during any period any
Intercompany Security other than the Initial Intercompany Security is
outstanding, the jurisdiction of residence of any obligor on any such
Intercompany Security.

      "Relevant Tax" means any present or future taxes, duties, assessments or
governmental charges of whatever nature, imposed or levied by or on behalf of
any Relevant Jurisdiction or any authority therein or thereof having power to
tax.

      "Tax Event" means, in the event that the Holder of the Class B Preferred
Securities is a Trust, the receipt by the Guarantor or any of its Affiliates of
an opinion of a nationally recognized law firm or other tax adviser in the
United States or The Netherlands, as appropriate, experienced in such matters,
to the effect that, as a result of (i) any amendment to, or clarification of,
or change (including any announced prospective change) in, the laws or treaties
(or any regulations promulgated thereunder) of the United States or The
Netherlands or any political subdivision or taxing authority thereof or therein
affecting taxation, (ii) any Administrative Action or (iii) any amendment to,
clarification of, or change in the official position or the interpretation of
such Administrative Action or any interpretation or pronouncement that provides
for a position with respect to such Administrative Action that differs from the
theretofore generally accepted position, in each case, by any legislative body,
court, governmental authority or regulatory body, irrespective of the manner in
which such amendment, clarification or change is made known, which amendment,
clarification or change is effective, or which pronouncement or decision is
announced, on or after the date of issuance of the Trust Securities and the
Company Securities, there is more than an insubstantial risk that the Trust
will be subject to more than a de minimis amount of taxes, duties or other
governmental charges; provided that an obligation to withhold any present or
future tax, duty, assessment or governmental charge on any Intercompany
Security in respect of payment made to the Company on such Intercompany
Securities shall not constitute a "Tax Event" under any circumstances.

      "Trust" means any ABN AMRO Capital Funding Trust.

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<PAGE>

      "Trust Agreement" means an amended and restated trust agreement, dated as
of [DATE] among the trustees of the Trust named therein, the sponsor of the
Trust named therein, the Guarantor and the holders from time to time of
undivided beneficial interests in the assets of the Trust, as amended from time
to time.

      "Trust Common Securities" means [COMMON SECURITIES] issued by a Trust.

      "Trust Indenture Act" means the U.S. Trust Indenture Act of 1939, as
amended.

      "Trust Preferred Securities" means [PREFERRED SECURITIES] issued by a
Trust.

      "Trust Securities" means Trust Preferred Securities and Trust Common
Securities.

      "Trust Securities Guarantee" means the Trust Securities Guarantee
Agreement, dated as of [DATE] among the Guarantor, [TRUST COMMON SECURITIES
OWNER] and [____], as trustee, for the benefit of the holders of the Trust
Securities.

      "Trust Special Redemption Event" means (i) a Tax Event or (ii) an
Investment Company Event.

                                   ARTICLE 2
                              TRUST INDENTURE ACT

      Section 2.01. Trust Indenture Act; Application. (a) This Contingent
Guarantee is subject to the provisions of the Trust Indenture Act that are
required to be part of this Contingent Guarantee and shall, to the extent
applicable, be governed by such provisions. A term defined in the Trust
Indenture Act has the same meaning when used in this Guarantee, unless
otherwise defined in this Contingent Guarantee or unless the context otherwise
requires.

      (b) If and to the extent that any provision of this Contingent Guarantee
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

      Section 2.02. Lists of Holders of Securities. (a) The Guarantee Trustee
shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Holders of Class B
Preferred Securities.

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<PAGE>

      (b) The Guarantee Trustee shall comply with its obligations under
Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

      Section 2.03. Reports by the Guarantee Trustee. Within [60] days after
[DATE] of each year, the Guarantee Trustee shall provide to the Holders of the
Class B Preferred Securities (and, if and for so long as a Trust is the Holder
of the Class B Preferred Securities, also to the Holders of the Trust Preferred
Securities), such reports as are required by Section 313 of the Trust Indenture
Act, if any, in the form and in the manner provided by Section 313 of the Trust
Indenture Act. The Guarantee Trustee shall also comply with the requirements of
Section 313(d) of the Trust Indenture Act.

      Section 2.04. Periodic Reports to Guarantee Trustee. The Guarantor shall
provide to the Guarantee Trustee such documents, reports and information as
required by Section 314 (if any) and the compliance certificate required by
Section 314 of the Trust Indenture Act in the form, in the manner and at the
times required by Section 314 of the Trust Indenture Act. Delivery of such
reports, information and documents to the Guarantee Trustee is for
informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Guarantor's
compliance with any of its covenants hereunder.

      Section 2.05. Evidence of Compliance with Conditions Precedent. The
Guarantor shall provide to the Guarantee Trustee such evidence of compliance
with any conditions precedent, if any, provided for in this Guarantee that
relate to any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to
Section 314 (c) (1) may be given in the form of an Officers' Certificate.

      Section 2.06. Events of Default; Waiver. The Company, upon request from
the Holders of a Majority in liquidation amount of the Class B Preferred
Securities, may waive any past Event of Default and its consequences except an
Event of Default in respect of a covenant or provision hereof which cannot be
modified or amended without the consent of each Holder of Class B Preferred
Securities (and, if and for so long as a Trust is the Holder of the Class B
Preferred Securities, also of each Holder of the Trust Securities). Upon such
waiver, any such Event of Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Contingent Guarantee, but no such waiver shall extend to any subsequent
or other default or Event of Default or impair any right consequent thereon.

      Section 2.07. Event of Default; Notice. (a) The Guarantee Trustee shall,
within 90 days after the occurrence of an Event of Default, transmit by mail,
first class postage prepaid, to the Company (with a copy to the Holders of the
Class B Preferred Securities (and, if and for so long as a Trust is the Holder
of the Class B Preferred Securities, also to the Holders of the Trust
Securities)), notices of all

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<PAGE>

Events of Default actually known to a Responsible Officer of the Guarantee
Trustee, unless such defaults have been cured before the giving of such notice,
provided, that, the Guarantee Trustee shall be protected in withholding such
notice if and so long as a Responsible Officer of the Guarantee Trustee in good
faith determines that the withholding of such notice is in the interests of the
Holders of the Class B Preferred Securities.

      (b) The Guarantee Trustee shall not be deemed to have knowledge of any
Event of Default unless a Responsible Officer of the Guarantee Trustee shall
have received written notice, or a Responsible Officer of the Guarantee Trustee
charged with the administration of this Contingent Guarantee shall have
obtained actual knowledge, of such Event of Default.

      Section 2.08. Rights of Holders. (a) The Company shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Guarantee Trustee in respect of this Contingent Guarantee or
exercising any trust or power conferred upon the Guarantee Trustee under this
Contingent Guarantee.

      (b) If the Guarantee Trustee fails to enforce its rights under the
Guarantee after the Company has made a written request, the Company may
institute a legal proceeding directly against the Guarantor to enforce the
Guarantee Trustee's rights under Article 5 of this Contingent Guarantee,
without first instituting a legal proceeding against the Issuer, the Guarantee
Trustee or any other person or entity. Notwithstanding the foregoing, if the
Guarantor has failed to make a Guarantee Payment, the Company may directly
institute a proceeding in its own name against the Guarantor for enforcement of
Article 5 of this Contingent Guarantee for such payment.

      Section 2.09. Conflicting Interests. The LLC Agreement and, if the Holder
of the Class B Preferred Securities is a Trust, the Trust Agreement shall be
deemed to be specifically described in this Contingent Guarantee for the
purposes of clause (i) of the first proviso contained in Section 310(b) of the
Trust Indenture Act.

                                   ARTICLE 3
                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

      Section 3.01. Powers, Duties and Rights of Guarantee Trustee. (a) This
Contingent Guarantee shall be held by the Guarantee Trustee for the benefit of
the Company, and the Guarantee Trustee shall not transfer this Contingent
Guarantee to any Person except the Company exercising its rights pursuant to
Section 2.08(b) or to a Successor Guarantee Trustee on acceptance by such
Successor Guarantee Trustee of its appointment to act as Successor Guarantee
Trustee. The right, title and interest of the Guarantee Trustee shall
automatically vest in any Successor Guarantee Trustee, and such vesting and
cessation of title shall be

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<PAGE>

effective whether or not conveyancing documents have been executed and
delivered pursuant to the appointment of such Successor Guarantee Trustee.

      (b) If an Event of Default actually known to a Responsible Officer of the
Guarantee Trustee has occurred and is continuing, the Guarantee Trustee shall
enforce this Contingent Guarantee for the benefit of the Holders of the Class B
Preferred Securities.

      (c) The Guarantee Trustee, before the occurrence of any Event of Default
and after the curing or waiver of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Contingent Guarantee, and no implied covenants shall be read into this
Contingent Guarantee against the Guarantee Trustee. In case an Event of Default
has occurred (that has not been cured or waived pursuant to Section 2.06 and is
actually known to a Responsible Officer of the Guarantee Trustee), the
Guarantee Trustee shall exercise such of the rights and powers vested in it by
this Contingent Guarantee, and use the same degree of care and skill in its
exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

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

            (i) Prior to the occurrence of any Event of Default and after the
      curing or waiving of all such Events of Default that may have occurred:

                  (A) the duties and obligations of the Guarantee Trustee shall
            be determined solely by the express provisions of this Contingent
            Guarantee, and the Guarantee Trustee shall not be liable except for
            the performance of such duties and obligations as are specifically
            set forth in this Contingent Guarantee, and no implied covenants or
            obligations shall be read into this Contingent Guarantee against
            the Guarantee Trustee; and

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

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<PAGE>

            (but need not confirm or investigate the accuracy of any
            mathematical calculations or other facts stated therein);

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

            (iii) The Guarantee Trustee shall not be liable with respect to any
      action taken or omitted to be taken by it in good faith in accordance
      with the direction of the Company relating to the time, method and place
      of conducting any proceeding for any remedy available to the Guarantee
      Trustee, or the exercise of any trust or power conferred upon the
      Guarantee Trustee under this Contingent Guarantee; and

            (iv) No provision of this Contingent Guarantee shall require the
      Guarantee Trustee to expend or risk its own funds or otherwise incur
      personal financial liability in the performance of any of its duties or
      in the exercise of any of its rights or powers, if the Guarantee Trustee
      shall have reasonable grounds for believing that the repayment of such
      funds or liability, or indemnity, satisfactory to the Guarantee Trustee,
      against such expense, risk or liability, is not assured to it under the
      terms of this Contingent Guarantee.

      Section 3.02. Certain Rights of Guarantee Trustee. (a) Subject to the
provisions of Section 3.01:

            (i) The Guarantee Trustee may conclusively rely, and shall be fully
      protected in acting or refraining from acting upon, any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debenture, note, other evidence of
      indebtedness or other paper or document (whether in its original or
      facsimile form) believed by it to be genuine and to have been signed,
      sent or presented by the proper party or parties.

            (ii) Any direction or act of the Guarantor contemplated by this
      Contingent Guarantee shall be sufficiently evidenced by an Officers'
      Certificate.

            (iii) Whenever, in the administration of this Contingent Guarantee,
      the Guarantee Trustee shall deem it desirable that a matter be proved or
      established before taking, suffering or omitting any action hereunder,
      the Guarantee Trustee (unless other evidence is herein specifically
      prescribed) may, in the absence of bad faith on its part, request and
      conclusively rely upon an Officers' Certificate which, upon receipt of
      such request, shall be promptly delivered by the Guarantor.

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<PAGE>

            (iv) The Guarantee Trustee shall have no duty to see to any
      recording, filing or registration of any instrument (or any rerecording,
      refiling or registration thereof).

            (v) The Guarantee Trustee may, at the expense of the Guarantor,
      consult with counsel of its selection, and the advice or opinion of such
      counsel with respect to legal matters shall be full and complete
      authorization and protection in respect of any action taken, suffered or
      omitted by it hereunder in good faith and in accordance with such advice
      or opinion. Such counsel may be counsel to the Guarantor or any of its
      Affiliates and may include any of its employees. The Guarantee Trustee
      shall have the right at any time to seek instructions concerning the
      administration of this Contingent Guarantee from any court of competent
      jurisdiction.

            (vi) The Guarantee Trustee shall be under no obligation to exercise
      any of the rights or powers vested in it by this Contingent Guarantee at
      the request or direction of the Company, unless the Company shall have
      provided to the Guarantee Trustee such security and indemnity,
      satisfactory to the Guarantee Trustee, against the costs, expenses
      (including attorneys' fees and expenses and the expenses of the Guarantee
      Trustee's agents, nominees or custodians) and liabilities that might be
      incurred by it in complying with such request or direction, including
      such reasonable advances as may be requested by the Guarantee Trustee;
      provided, that nothing contained in this Section 3.02(a)(vi) shall be
      taken to relieve the Guarantee Trustee, upon the occurrence of an Event
      of Default, of its obligation to exercise the rights and powers vested in
      it by this Contingent Guarantee.

            (vii) The Guarantee Trustee shall not be bound to make any
      investigation into the facts or matters stated in any resolution,
      certificate, statement, instrument, opinion, report, notice, request,
      direction, consent, order, bond, debenture, note, other evidence of
      indebtedness or other paper or document, but the Guarantee Trustee, in
      its discretion, may make such further inquiry or investigation into such
      facts or matters as it may see fit but shall incur no liability or
      additional liability of any kind by reason of such inquiry or
      investigation.

            (viii)The Guarantee Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or by or
      through agents, nominees, custodians or attorneys, and the Guarantee
      Trustee shall not be responsible for any misconduct or negligence on the
      part of any agent or attorney appointed with due care by it hereunder.

            (ix) Any action taken by the Guarantee Trustee or its agents
      hereunder shall bind the Company, and the signature of the Guarantee
      Trustee or its agents alone shall be sufficient and effective to perform
      any

                                      11
<PAGE>

      such action. No third party shall be required to inquire as to the
      authority of the Guarantee Trustee to so act or as to its compliance with
      any of the terms and provisions of this Contingent Guarantee, both of
      which shall be conclusively evidenced by the Guarantee Trustee or its
      agent taking such action.

            (x) Whenever in the administration of this Contingent Guarantee the
      Guarantee Trustee shall deem it desirable to receive instructions with
      respect to enforcing any remedy or right or taking any other action
      hereunder, the Guarantee Trustee (i) may request written instructions
      from the Company, (ii) may refrain from enforcing such remedy or right or
      taking such other action until such written instructions are received and
      (iii) shall be protected in conclusively relying on or acting in
      accordance with such written instructions.

            (xi) The Guarantee Trustee shall not be liable for any action
      taken, suffered, or omitted to be taken by it in good faith and
      reasonably believed by it to be authorized or within the discretion or
      rights or powers conferred upon it by this Contingent Guarantee.

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

      Section 3.03. Not Responsible for Recitals or Issuance of Contingent
Guarantee. The recitals contained in this Contingent Guarantee shall be taken
as the statements of the Guarantor, and the Guarantee Trustee does not assume
any responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Contingent Guarantee.

                                   ARTICLE 4
                               GUARANTEE TRUSTEE

      Section 4.01. Guarantee Trustee; Eligibility. (a) There shall at all times
be a Guarantee Trustee which shall:

            (i) not be an Affiliate of the Guarantor; and

            (ii) be a corporation organized and doing business under the laws
      of the United States of America or any State thereof or of the District
      of Columbia, or a corporation or Person permitted by the Securities and

                                      12
<PAGE>

      Exchange Commission to act as an institutional trustee under the Trust
      Indenture Act, authorized under such laws to exercise corporate trust
      powers, having a combined capital and surplus of at least 50 million U.S.
      dollars ($50,000,000), and subject to supervision or examination by
      Federal, State or District of Columbia authority. If such corporation
      publishes reports of condition at least annually, pursuant to law or to
      the requirements of the supervising or examining authority referred to
      above, then, for the purposes of this Section 4.01(a)(ii), the combined
      capital and surplus of such corporation shall be deemed to be its
      combined capital and surplus as set forth in its most recent report of
      condition so published.

      (b) If at any time the Guarantee Trustee shall cease to be eligible to so
act under Section 4.01(a), the Guarantee Trustee shall immediately resign in
the manner and with the effect set out in Section 4.02(c).

      (c) If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the
provisions of Section 310(b) of the Trust Indenture Act.

      Section 4.02. Appointment, Removal and Resignation of Guarantee Trustee.
(a) Subject to Section 4.02(b), the Guarantee Trustee may be appointed or
removed without cause at any time by the Guarantor except during an Event of
Default.

      (b) The Guarantee Trustee shall not be removed in accordance with Section
4.02(a) until a Successor Guarantee Trustee has been appointed and has accepted
such appointment by written instrument executed by such Successor Guarantee
Trustee and delivered to the Guarantor.

      (c) The Guarantee Trustee appointed to office shall hold office until a
Successor Guarantee Trustee shall have been appointed or until its removal or
resignation. The Guarantee Trustee may resign from office (without need for
prior or subsequent accounting) by an instrument in writing executed by the
Guarantee Trustee and delivered to the Guarantor, which resignation shall not
take effect until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by instrument in writing executed by such Successor
Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee
Trustee.

      (d) If no Successor Guarantee Trustee shall have been appointed and
accepted appointment as provided in this Section 4.02 within 60 days after
delivery of an instrument of removal or resignation, the Guarantee Trustee
resigning or being removed may petition, at the expense of the Guarantor, any
court of competent jurisdiction for appointment of a Successor Guarantee
Trustee. Such court may thereupon, after prescribing such notice, if any, as it
may deem proper, appoint a Successor Guarantee Trustee.

                                      13
<PAGE>

      (e) No Guarantee Trustee shall be liable for the acts or omissions to act
of any Successor Guarantee Trustee.

      (f) Upon termination of this Guarantee or removal or resignation of the
Guarantee Trustee pursuant to this Section 4.02, and before the appointment of
any Successor Guarantee Trustee, the Guarantor shall pay to the Guarantee
Trustee all amounts to which it is entitled to the date of such termination,
removal or resignation.

                                   ARTICLE 5
                              CONTINGENT GUARANTEE

      Section 5.01. Contingent Guarantee. The Guarantor irrevocably and
unconditionally agrees, subject to the limitations set forth in this Contingent
Guarantee, to pay in full to the Company (without duplication of amounts
theretofore paid to the Holders of the Class B Preferred Securities and, if a
Trust is the Holder of the Class B Preferred Securities, the Trust Securities
by the Company or, if applicable, the Trust or by the Guarantor), if, as and
when due:

            (i) any accumulated but unpaid Dividends on the Class B Preferred
      Securities, whether declared by the Company or deemed declared pursuant
      to Section 5.02 hereof, plus Additional Amounts thereon, if any;

            (ii) the $[____] redemption price per each Class B Preferred
      Security called for redemption by the Company, plus an amount equal to
      any accumulated and unpaid Dividends thereon for the then current
      Dividend Period through the date of redemption, on the Class B Preferred
      Securities, plus Additional Amounts thereon, if any (the "Redemption
      Price"); and

            (iii) the $[____] liquidation amount per each Class B Preferred
      Security upon any voluntary or involuntary dissolution, liquidation or
      winding up of the Company, plus Additional Amounts thereon, if any;

      (collectively, the "Guarantee Payments"); provided that, in the event of
any insolvency of the Guarantor, the Guarantee Payments payable under this
Section 5.01 shall be reduced by an amount equal to (A) the amount of Guarantee
Payments payable under this Section 5.01 without giving effect to this proviso
multiplied by (B) a fraction, (x) the numerator of which is the aggregate
portion of all claims under the Parity Preferred Shares and the Parity
Guarantees determined to be payable out of the remaining assets of the
Guarantor in such insolvency after giving effect to this proviso and the
similar terms of any Parity Guarantee and (y) the denominator of which is the
aggregate principal or face amount of such claims. All Guarantee Payments shall
include interest accrued on such Guarantee Payments since the date of the claim
asserted under the Class B

                                      14
<PAGE>

Preferred Securities Guarantee or, if applicable, the Trust Securities
Guarantee, the nonpayment of which claim for 180 days resulted in the Company
enforcing its rights under this Contingent Guarantee.

      The Guarantor's obligation to make any of the payments listed in (i)
through (iii) above (A) is limited to the extent such payments are not made
pursuant to either of the Guarantees and (B) may be satisfied by direct payment
of the required amounts by the Guarantor to the Company or by causing the
Company or, if applicable, a Trust to pay such amounts to the Holders of the
Class B Preferred Securities or the Trust Securities, as applicable.

      Section 5.02. Delivery of Guarantor's Certificate; Dividends Deemed
Declared. (a) As of each Dividend Date with respect to which the Company has not
paid Dividends on the Class B Preferred Securities in full at the Dividend
Rate, the Guarantor shall deliver an Officers' Certificate to the Company
substantially in the form attached as Exhibit A hereto (the "Guarantor
Certificate"); provided that failure to deliver the Guarantor Certificate on or
prior to any Dividend Date with respect to which the Company has not paid
Dividends on the Class B Preferred Securities in full at the Dividend Rate
shall not constitute an Event of Default but shall result in Dividends on all
the Class B Preferred Securities then outstanding being deemed declared in full
at the Dividend Rate on such Dividend Date for the purposes of Section 5.01(i)
hereof.

      (b) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required dividends on the Trust Preferred Securities and (ii) the Guarantor or
any of its subsidiaries has redeemed, repurchased or otherwise acquired (other
than (I) in connection with transactions effected by or for the account of
customers of the Guarantor or any of its subsidiaries or in connection with the
distribution, trading or market-making in respect of such securities, (II) in
connection with the satisfaction by the Guarantor or any of its subsidiaries of
its obligations under any employee benefit plans or similar arrangements with
or for the benefit of employees, officers, directors or consultants, (III) as a
result of a reclassification of the capital stock of the Guarantor or any of
its subsidiaries or the exchange or conversion of one class or series of such
capital stock for another class or series of such capital stock or (IV) the
purchase of fractional interests in shares of the capital stock of the
Guarantor or any of its subsidiaries pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged)
for any consideration (or moneys have been paid to or made available for a
sinking fund or for redemption of any such shares) any Ordinary Shares or any
Parity Securities during the twelve month period immediately preceding and
including such Dividend Date, then Dividends will be deemed declared in full at
the Dividend Rate on such Dividend Date for the purposes of Section 5.01(i)
hereof.

      (c) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required

                                      15
<PAGE>

dividends on the Trust Preferred Securities and (ii) the Guarantor or any of
its subsidiaries has declared or made a dividend or other payment in respect of
the Ordinary Shares that pay dividends annually during the twelve month period
immediately preceding and including such Dividend Date, then Dividends will be
deemed declared in full at the Dividend Rate on such Dividend Date for the
purposes of Section 5.01(i) hereof.

      (d) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required dividends on the Trust Preferred Securities and (ii) the Guarantor or
any of its subsidiaries has declared or made a dividend or other payment in
respect of any Ordinary Shares that pay dividends semi-annually during the six
month period immediately preceding and including such Dividend Date, then
Dividends will be deemed declared in full at the Dividend Rate on such Dividend
Date for the purposes of Section 5.01(i) hereof.

      (e) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required dividends on the Trust Preferred Securities and (ii) the Guarantor or
any of its subsidiaries has declared or made a dividend or other payment in
respect of any Ordinary Shares that pay dividends quarterly during the three
month period immediately preceding and including such Dividend Date, then
Dividends will be deemed declared in full at the Dividend Rate on such Dividend
Date for the purposes of Section 5.01(i) hereof.

      (f) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required dividends on the Trust Preferred Securities and (ii) the Guarantor or
any of its subsidiaries has declared or made a dividend or other payment in
respect of Parity Securities that pay dividends annually during the twelve
month period immediately preceding and including such Dividend Date, either in
full or at a percentage of a dividend rate stated thereon, as set forth in
paragraph 8 of the Guarantor Certificate delivered as of such Dividend Date,
then Dividends will be deemed declared in full at the Dividend Rate or pro rata
in accordance with Section 5.02(j) hereof, as the case may be, on such Dividend
Date for the purposes of Section 5.01(i) hereof.

      (g) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required dividends on the Trust Preferred Securities and (ii) the Guarantor or
any of its subsidiaries has declared or made a dividend or other payment in
respect of the Parity Securities that pay dividends semi-annually during the
six month period immediately preceding and including such Dividend Date, either
in full or at a percentage of a dividend rate stated thereon, as set forth in
paragraph 9 of the Guarantor Certificate delivered as of such Dividend Date,
then Dividends will be deemed declared in full at the Dividend Rate or pro rata
in accordance with

                                      16
<PAGE>

Section 5.02(j) hereof, as the case may be, on such Dividend Date for the
purposes of Section 5.01(i) hereof.

      (h) If on any Dividend Date (i) the Company has not paid Dividends in
full at the Dividend Rate or, if applicable, the relevant Trust has not paid
required dividends on the Trust Preferred Securities and (ii) the Guarantor or
any of its subsidiaries has declared or made a dividend or other payment in
respect of the Parity Securities that pay dividends quarterly during the three
month period immediately preceding and including such Dividend Date, either in
full or at a percentage of a dividend rate stated thereon, as set forth in
paragraph 10 of the Guarantor Certificate delivered as of such Dividend Date,
then Dividends will be deemed declared in full at the Dividend Rate or pro rata
in accordance with Section 5.02(j) hereof, as the case may be, on such Dividend
Date for the purposes of Section 5.01(i) hereof.

      (i) The amount of Dividends declared or deemed declared for purposes of
Section 5.01(i) hereof on all Class B Preferred Securities then outstanding
with respect to any Dividend Date shall be equal to the greater of (i) the
amount of Dividends declared on such Dividend Date by the Company or (ii) the
amount of Dividends deemed declared on such Dividend Date pursuant to
subsection (a), (b), (c), (d), (e), (f), (g) or (h) hereof.

      (j) In the event that Dividends are deemed declared on any Dividend Date
pursuant to this Section 5.02 pro rata with dividends and other payments on the
Parity Securities, such Dividends shall be deemed declared in proportion that
the aggregate amount available for payment of dividends on the Class B
Preferred Securities and the Parity Securities in the fiscal year in which such
Dividend Date falls bears to the aggregate full amount of stated dividends on
the Class B Preferred Securities and the Parity Securities payable in such
fiscal year. If Dividends are deemed declared on a pro rata basis, the
Guarantor will select, in its sole discretion, the date of the applicable
market exchange rate to make the calculations described above.

      Section 5.03. Waiver of Notice and Demand. The Guarantor hereby waives
notice of acceptance of this Contingent Guarantee and of any liability to which
it applies or may apply, presentment, demand for payment, any right to require
a proceeding first against the Company or, if applicable, a Trust or any other
Person before proceeding against the Guarantor, protest, notice of nonpayment,
notice of dishonor, notice of redemption and all other notices and demands.

      Section 5.04. Obligations Not Affected. The obligations, covenants,
agreements and duties of the Guarantor under this Contingent Guarantee shall in
no way be affected or impaired by reason of the happening from time to time of
any of the following:

                                      17
<PAGE>

      (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Company or, if applicable, a Trust of any
express or implied agreement, covenant, term or condition relating to the Class
B Preferred Securities or, if applicable, the Trust Securities to be performed
or observed by the Company or the Trust, as applicable;

      (b) the extension of time for the payment by the Company of all or any
portion of the Dividends, Redemption Price, liquidation preference or any other
sums payable under the terms of the Class B Preferred Securities or, if
applicable, the extension of time for the payment by the relevant Trust of all
or any portion of the sums payable under the terms of the Trust Securities, or
the extension of time for the performance of any other obligation under,
arising out of, or in connection with, the Class B Preferred Securities or, if
applicable, the Trust Securities; provided, however, that nothing in this
Contingent Guarantee shall affect or impair a valid extension;

      (c) any failure, omission, delay or lack of diligence on the part of the
Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Class B Preferred
Securities or, if applicable, the Trust Securities or any action on the part of
the Company or, the Trust, as applicable, granting indulgence or extension of
any kind;

      (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Company or, if applicable, a Trust
or any of the assets of the Company or the Trust, as applicable;

      (e) any invalidity of, or defect or deficiency in, the Class B Preferred
Securities or, if applicable, the Trust Securities;

      (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

      (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.04 that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.

      There shall be no obligation of the Company to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the
foregoing.

      Section 5.05. Independent Obligations. The Guarantor acknowledges that
its obligations hereunder are independent of the obligations of the Company or,
if applicable, a Trust with respect to the Class B Preferred Securities or, if
applicable, the Trust Securities, and that the Guarantor shall be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this

                                      18
<PAGE>

Contingent Guarantee notwithstanding the occurrence of any event referred to in
subsections (a) through (g), inclusive, of Section 5.04 hereof.

      Section 5.06. Taxes. All payments in respect of the Guarantee Payments
(including interest accrued thereon, if any) by the Guarantor shall be made
without withholding or deduction for or on account of any Relevant Tax, unless
the withholding or deduction of such Relevant Tax is required by law. In that
event, the Guarantor shall pay, as further Guarantee Payments, such additional
amounts as may be necessary in order that the net amounts received by the
Company after such withholding or deduction will equal the amount which would
have been received in respect of the Guarantee Payments (including interest
accrued thereon, if any) in the absence of such withholding or deduction.

                                   ARTICLE 6
                      LIMITATION OF TRANSACTIONS; RANKING

      Section 6.01. Limitation of Transactions. (a) The Guarantor, for so long
as any Class B Preferred Securities or, if applicable, any Trust Securities
remain outstanding, shall not issue any preferred or preference shares ranking
senior on liquidation to its obligations under this Contingent Guarantee or
give any guarantee in respect of any preferred securities or preferred or
preference shares issued by any of its subsidiaries if such guarantee would
rank senior to this Contingent Guarantee, unless this Contingent Guarantee is
amended to give the Company such rights and entitlements as are contained in or
attached to such other guarantee so that this Contingent Guarantee ranks pari
passu with such guarantee and pari passu on liquidation with any declared
dividend or declared liquidation payments of such preferred or preference
shares.

      (b) The Guarantor shall pay all amounts required to be paid pursuant to
this Contingent Guarantee in respect of any Dividends on the Class B Preferred
Securities payable in respect of the most recent Dividend Period prior to any
dividend or other payment (except dividends in the form of the Ordinary Shares)
upon the Ordinary Shares (whether issued directly or under a guarantee ranking
junior to this Contingent Guarantee).

      (c) The Guarantor, for so long as any Class B Preferred Securities or, if
applicable, any Trust Securities remain outstanding, shall maintain, or shall
cause [the Bank] or any one or more Qualified Subsidiaries (each, a "Potential
Securityholder") to maintain 100% ownership of the Company Common Securities
and the Trust Common Securities, if applicable. The Guarantor may transfer and
permit the transfer of the Company Common Securities from one Potential
Securityholder to another Potential Securityholder, provided that prior to such
transfer it has received an opinion of a nationally recognized law firm
experienced in such matters to the effect that (A) the Company will continue to
be treated as a partnership for United States federal income tax purposes, and
such transfer will not cause the Company to be classified as an association or
publicly

                                      19
<PAGE>

traded partnership taxable as a corporation for United States federal income
tax purposes, (B) such transfer will not cause the Company or, if applicable, a
Trust to be required to register under the 1940 Act and (C) such transfer will
not adversely affect the limited liability of the Holders of the Class B
Preferred Securities.

      (d) The Guarantor for so long as any Class B Preferred Securities or, if
applicable, Trust Securities remain outstanding, (1) shall cause the [CLASS A
PREFERRED SECURITYHOLDER] to maintain 100% ownership of the Class A Preferred
Securities, (2) shall cause the Company to remain a limited liability company,
(3) shall use its commercially reasonable efforts to ensure that the Company
will not be an association or a publicly traded partnership taxable as a
corporation for United States federal income tax purposes, and (4) where the
Holder of the Class B Preferred Securities is a Trust, (i) shall cause the
Trust to remain a statutory trust and not to voluntarily dissolve, wind up,
liquidate or be terminated, except as permitted by the LLC Agreement and (ii)
shall use its commercially reasonable efforts to ensure that the Trust will not
be classified as other than a grantor trust for United States federal income
tax purposes.

      (e) If the Holder of the Class B Preferred Securities is a Trust, the
Guarantor, for so long as any of the Trust Securities are outstanding, shall
not permit, or take any action to cause, the dissolution, liquidation,
termination or winding up of the Trust, unless a Trust Special Redemption Event
occurs or the Guarantor is itself in liquidation and the approval of the Dutch
Central Bank, if then required, to such action has been received.

      (f) The Guarantor, for so long as any of the Class B Preferred Securities
are outstanding, shall not permit, or take any action to cause, the
dissolution, liquidation, termination or winding up of the Company, unless the
Guarantor is itself in liquidation and the approval of the Dutch Central Bank,
if then required, to such action has been received and all claims under the
Guarantees and the Contingent Guarantee shall have been paid in full and the
Contingent Distribution (as defined in the LLC Agreement) shall have been made.

      (g) If the Holder of the Class B Preferred Securities is a Trust, and if
the Class B Preferred Securities are distributed to Holders of Trust Preferred
Securities in connection with the involuntary or voluntary dissolution,
winding-up or liquidation of the Trust, the Guarantor shall use its
commercially reasonable efforts to cause the Class B Preferred Securities to be
listed on the [New York Stock Exchange], the [Luxembourg Stock Exchange] or on
such other national securities exchange or similar organization as the Trust
Preferred Securities are then listed or quoted on.

      Section 6.02. Ranking. This Contingent Guarantee will constitute an
unsecured obligation of the Guarantor and will rank (i) subordinate and junior
in right of payment to indebtedness of the Guarantor (other than any guarantee
or contractual right expressed to rank pari passu with or junior to this
Contingent

                                      20
<PAGE>

Guarantee), (ii) pari passu with the Guarantor's obligations under the Parity
Guarantees, and (iii) senior to the Ordinary Shares. Any guarantee given
hereafter by the Guarantor with respect to trust preferred securities issued by
a subsidiary of the Guarantor and treated as Tier 1 regulatory capital by the
Guarantor that is silent as to seniority will rank pari passu with this
Contingent Guarantee.

                                   ARTICLE 7
                                  TERMINATION

      Section 7.01. Termination. This Contingent Guarantee shall terminate
upon, and be of no further force and effect from the earlier of (i) full
payment of the Redemption Price of all Class B Preferred Securities or, if
applicable, Trust Securities or purchase and cancellation of all Class B
Preferred Securities or, if applicable, Trust Securities or (ii) upon full
payment of the $[____] liquidation amount, plus any accumulated and unpaid
Dividends thereon, plus Additional Amounts thereon, if any, as payable on the
Class B Preferred Securities or, if applicable, the Trust Securities upon
liquidation of the Company and, if applicable, the Trust. Notwithstanding the
foregoing, this Contingent Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time the Company must restore payment
of any sums paid under this Contingent Guarantee or the Holders must restore
payment of any sums paid under any of the Guarantees for any reason whatsoever.

                                   ARTICLE 8
                                INDEMNIFICATION

      Section 8.01. Exculpation. (a) No Indemnified Person shall be liable,
responsible or accountable in damages or otherwise to the Guarantor or any
Covered Person for any loss, liability, expense, damage or claim incurred by
reason of any act or omission performed or omitted by such Indemnified Person
in good faith in accordance with this Contingent Guarantee and in a manner that
such Indemnified Person reasonably believed to be within the scope of the
authority conferred on such Indemnified Person by this Contingent Guarantee or
by law, except that an Indemnified Person shall be liable for any such loss,
liability, expense, damage or claim incurred by reason of such Indemnified
Person's gross negligence or willful misconduct with respect to such acts or
omissions.

      (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters
the Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable

                                      21
<PAGE>

care by or on behalf of the Guarantor, 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 Dividends to Holders of Class B Preferred Securities might properly be
paid.

      Section 8.02. Indemnification. The Guarantor agrees to indemnify each
Indemnified Person for, and to hold each Indemnified Person harmless against,
any and all loss, liability, damage, claim or expense incurred without gross
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the
costs and expenses (including reasonable legal fees and expenses) of defending
itself against, or investigating, any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The
obligation to indemnify as set forth in this Section 8.02 shall survive the
termination of this Contingent Guarantee or the earlier resignation or removal
of the Guarantee Trustee.

                                   ARTICLE 9
                                 MISCELLANEOUS

      Section 9.01. Successors and Assigns. All guarantees and agreements
contained in this Contingent Guarantee shall bind the successors, assigns,
receivers, trustees and representatives of the Guarantor and shall inure to the
benefit of the Company.

      Section 9.02. Amendments. This Contingent Guarantee may be modified only
with the prior approval of the Guarantee Independent Director (as defined in
the LLC Agreement) acting on behalf of the Company. Sections 5.01, 5.02, 5.06
and the form of Exhibit A hereto may not be amended without the prior approval
of the Guarantee Independent Director acting at the direction of Holders of
100% in liquidation amount of the Class B Preferred Securities.

      Section 9.03. Judgment Currency Indemnity. (a) If, for the purposes of
obtaining judgment in any court, it is necessary to convert an amount due from
the Guarantor under any provision of this Contingent Guarantee to a currency
other than U.S. Dollars, the parties agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Guarantee Trustee could purchase
such other currency with U.S. Dollars at its New York office on the second
Business Day preceding the day on which final judgment is given.

      (b) The obligations of the Guarantor in respect of any amount due to the
Company under this Contingent Guarantee shall, notwithstanding any judgment in
a currency other than U.S. Dollars, be discharged only to the extent that on
the Business Day following receipt by the Company of any amount adjudged to be
so due in such other currency the Company may in accordance with normal banking
procedures purchase U.S. Dollars with such other currency.

                                      22
<PAGE>

      (c) If the amount of U.S. Dollars so purchased is less than the amount
originally due to the Company in U.S. Dollars, the Guarantor agrees, to the
fullest extent that it may effectively do so, as a separate obligation and
notwithstanding any such judgment, to indemnify the Company against such loss.

      (d) If the amount of Dollars so purchased exceeds the amount originally
due to the Company in U.S. Dollars, the Company agrees to remit any remaining
amount to the Guarantor.

      Section 9.04. Assignment of the Contingent Guarantee. The Guarantor will
not assign its obligations under this Contingent Guarantee except in the case
of a merger, consolidation or sale of substantially all of the assets of the
Guarantor where the Guarantor is not the surviving entity.

      Section 9.05. Notices. All notices provided for in this Contingent
Guarantee shall be in writing, duly signed by the party giving such notice, and
shall be delivered, telecopied or mailed by first class mail, as follows:

      (a) If given to the Company, at the Company's mailing address set forth
below:

          ABN AMRO Capital Funding LLC ____
          c/o The Corporation Trust Company
          Corporation Trust Center
          1209 Orange Street
          City of Wilmington
          County of New Castle, Delaware 19801

      (b) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Company):

          ABN AMRO [Bank][Holding] N.V.
          Gustav Mahlerlaan 10
          1082 PP Amsterdam
          The Netherlands
          Attn: Group Asset and Liability Management
          Fax: +31 20 383 48 30

      (c) If given to the Guarantee Trustee, at the Guarantee Trustee's mailing
address set forth below:

          [ADDRESS]

      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

                                      23
<PAGE>

delivered because of a changed address of which no notice was given, such
notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver.

      Section 9.06. Governing Law. THIS GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE NETHERLANDS,
EXCEPT THAT ARTICLES 2, 3 AND 4, AND THE DEFINITIONS OF TERMS AS USED THEREIN,
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

      Section 9.07. Jurisdiction. Any claim or proceeding brought by the
Guarantee Trustee on behalf of the Company or the Company to enforce the
obligations of the Guarantor hereunder shall be brought in a court of competent
jurisdiction in Amsterdam, The Netherlands. Any claim or proceeding relating to
the application of Articles 2, 3 and 4, and the definitions of terms as used
therein, including, without limitation, any claims, counter-claims and
cross-claims asserted against the Guarantee Trustee in connection therewith,
shall be brought in a court of competent jurisdiction in the State of New York.

                                      24
<PAGE>

      THIS CONTINGENT GUARANTEE is executed as of the day and year first above
written.

                              ABN AMRO [BANK][HOLDING] N.V.,
                              as Guarantor

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

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

                                    ABN AMRO CAPITAL FUNDING LLC [_____]

                              By:   [______________]

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

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

[_______________],
as Guarantee Trustee

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

<PAGE>

                                                                      EXHIBIT A

                         ABN AMRO [BANK][HOLDING] N.V.

                             OFFICERS' CERTIFICATE

       [March 31], [June 30], [September 30], [December 31],(1) __________

      The undersigned, [name of Authorized Officer], [title of Authorized
Officer], and [name of Authorized Officer], [title of Authorized Officer], of
ABN AMRO [Bank][Holding] N.V., a public limited liability company incorporated
under the laws of The Netherlands (the "Company"), pursuant to Section 5.02 of
the Contingent Guarantee Agreement dated as of [DATE] (the "Contingent
Guarantee"), executed and delivered by the Company, as guarantor, and ABN AMRO
Capital Funding LLC ____, do hereby certify as of the date hereof on behalf of
the Company as follows (capitalized terms used herein without definitions have
the meanings assigned to them in the Contingent Guarantee):

      1. We have read and are familiar with the provisions of the Contingent
Guarantee (including, without limitation, Section 5.02 thereof) and all
definitions therein.

      2. We have reviewed all corporate documents necessary to state the facts
contained herein and are duly authorized to certify to those facts.

      3. In our opinion, we have made such examination or investigation as is
necessary to enable us to express an informed opinion as to the facts certified
herein.

      4. [Neither][Either]1 the Company [nor][or]1 any of its subsidiaries has
redeemed, repurchased or otherwise acquired (other than (I) in connection with
transactions effected by or for the account of customers of the Guarantor or
any of its subsidiaries or in connection with the distribution, trading or
market-making in respect of such securities, (II) in connection with the
satisfaction by the Guarantor or any of its subsidiaries of its obligations
under any employee benefit plans or similar arrangements with or for the
benefit of employees, officers, directors or consultants, (III) as a result of
a reclassification of the capital stock of the Guarantor or any of its
subsidiaries or the exchange or conversion of one class or series of such
capital stock for another class or series of such capital stock or (IV) the
purchase of fractional interests in shares of the capital stock of the
Guarantor or any of its subsidiaries pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged)
for any consideration (and moneys [have][have not]2 been paid to or made
available for a sinking fund or for redemption of) any Ordinary Shares or any
Parity

---------
      (1)  Delete, if not applicable.

                                      A-1
<PAGE>

Securities during the twelve month period immediately preceding and including
the date hereof.

      5. [Neither][Either](2) the Company [nor][or](2) any of its subsidiaries
has declared or made a dividend or other payment in respect of the Ordinary
Shares that pay dividends annually, if any, during the twelve month period
immediately preceding and including the date hereof.

      6. (a)[Neither][Either](2) the Company [nor][or](2) any of its
subsidiaries has declared or made a dividend or other payment in respect of the
Ordinary Shares that pay dividends semi-annually, if any, during the six month
period immediately preceding and including the date hereof.

      7. (a) [Neither][Either](2) the Company [nor][or](2) any of its
subsidiaries has declared or made a dividend or other payment in respect of the
Ordinary Shares that pay dividends quarterly, if any, during the three month
period immediately preceding and including the date hereof.

      8. (a) [Neither][Either](2) the Company [nor][or](2) any of its
subsidiaries has declared or made a dividend or other payment in respect of the
Parity Securities that pay dividends annually, if any, during the twelve month
period immediately preceding and including the date hereof.

      (b) A dividend or other payment in respect of the Parity Securities that
pay dividends annually, if any, was declared or made [in full](2) [at __% of
the stated dividend rate for such Parity Securities].(3)

      9. (a) [Neither][Either](2) the Company [nor][or](2) any of its
subsidiaries has declared or made a dividend or other payment in respect of its
Parity Securities that pay dividends semi-annually, if any, during the six
month period immediately preceding and including the date hereof.

---------
      (2)  Delete, if not applicable.

      (3)  To be filled in only if a dividend or other payment was declared or
made on the Parity Securities that pay dividends annually.

                                      A-2
<PAGE>

      (b) A dividend or other payment in respect of the Parity Securities that
pay dividends semi-annually, if any, was declared or made [in full])4) [at __%
of the stated dividend rate for such Parity Securities].(5)

      10. (a) [Neither][Either](4) the Company [nor][or](4) any of its
subsidiaries has declared or made a dividend or other payment in respect of the
Ordinary Shares that pay dividends quarterly, if any, during the three month
period immediately preceding and including the date hereof.

      (b) A dividend or other payment in respect of the Parity Securities that
pay dividends quarterly, if any, was declared or made [in full](4) [at __% of
the stated dividend rate for such Parity Securities.](6)

      IN WITNESS WHEREOF, the undersigned have duly executed as of the date
first set forth above.

                              ABN AMRO [BANK][HOLDING] N.V.

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

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

---------
      (4)  Delete, if not applicable.

      (5)  To be filled in only if a dividend or other payment was declared or
made on the Parity Securities that pay dividends semi-annually.

      (6)  To be filled in only if a dividend or other payment was declared or
made on the Parity Securities that pay dividends quarterly.

                                      A-3<PAGE>

                                                                   Exhibit 10.16

                      LEGG MASON WOOD WALKER, INCORPORATED

                        FINANCIAL ADVISOR RETENTION PLAN

         This document constitutes the Legg Mason Wood Walker, Incorporated
Financial Advisor Retention Plan (the "Plan"), as amended and restated effective
as of January 1, 2003. The Plan, as amended and restated, constitutes the
continuation of the plan as in effect immediately prior to January 1, 2003 (the
"Prior Plan"). The Prior Plan was known as the Legg Mason Wood Walker,
Incorporated Private Client Group Deferred Compensation Plan.

         1.  Purpose - The purpose of the Plan is to enhance the ability of Legg
Mason Wood Walker, Incorporated (the "Company") to retain key full-time
financial advisors by providing special payments to key financial advisors who
remain employed by the Company for specific periods of time. The Plan also
provides for payments to retired financial advisors who do not compete with the
Company following their retirement. The additional compensation payable to a
full-time financial advisor for remaining with the Company for a specified
period (and the measure of the value of that financial advisor's continued
employment with the Company) is determined based upon the commissions and fee
revenue generated by the financial advisor. Amounts payable under this Plan are
in addition to the compensation provided for services rendered and are intended
solely to encourage financial advisors to remain employed by the Company as
full-time financial advisors.

         2.  Definitions - As used herein, the following definitions shall
apply:

             (a) "Account" means a Financial Advisor's combined Interest Account
and Phantom Stock Account.

             (b) "Committee" means the Legg Mason Wood Walker, Incorporated
Financial Advisor Retention Plan Committee consisting of such members as the
Company's President shall select from time to time.

             (c) "Company" means Legg Mason Wood Walker, Incorporated.

             (d) "Credit Interest Asset Base" means for each month, the product
of (A) the product of (X) 0.0833 and (Y) the sum of the average credit interest
and Legg Mason money market fund balances of the FA for the month (calculated by
dividing the sum of the closing balances in the account for each day by the
number of days in the month), less the applicable threshold for that Plan Year
as set forth in the FA Compensation Schedule, and (B) 0.001 (or the different
number for the applicable Plan Year as is set forth in the FA Compensation
Schedule).

             (e) "Credit Interest Retention Bonus" means the retention bonus
credited under Section 4(b) with respect to the combined balance in credit
interest accounts and Legg Mason money market fund accounts in excess of the
applicable threshold contained in the FA Compensation Schedule. In the case of a
Team Leader, such retention bonus shall be based on the combined balance in
credit interest accounts and Legg Mason money market fund

<PAGE>

accounts of the Participating Team in excess of the applicable threshold
contained in the FA Compensation Schedule.

         (f) "Credit Interest Rate" means the average of the twelve month end
rates of the Company's credit interest rate paid during a Plan Year to the
Company's cash reinvestment accounts.

         (g) "Disability" means a medically determinable physical or mental
impairment which, as determined by the Committee using such criteria as it
establishes in its sole and absolute discretion, will prevent the FA from
performing his or her usual duties or any other similar duties available in the
Company's employ for a period of at least twelve (12) months.

         (h) "Distribution Valuation Date" means (i) in the case of a
distribution following the death of a FA or the termination of a FA's employment
as a result of Disability, the date that is ten (10) business days before the
applicable Payment Date; and (ii) in all other cases, January 25th (or, if Legg
Mason Common Stock is not traded on its principal exchange on that day, the next
following day on which Legg Mason Common Stock is traded on its principal
exchange) preceding the applicable Payment Date.

         (i) "Dividend Payment Date" has the meaning specified in Section
6(d)(i).

         (j) "Eligible FA" means a FA (i) who is employed in the Company's
Private Client Group, (ii) who is classified by the Company as a full-time FA
and (iii) who is employed by the Company on the last day of the Plan Year, or
who terminated employment during the Plan Year by reason of death, Disability or
Retirement. A FA who is not classified by the Company as a "full-time" FA is not
eligible to participate in the Plan, regardless of the number of hours devoted
to services as a FA. Also, FAs who are members of a Participating Team are not
considered Eligible FAs, however, a FA who is a Team Leader is considered an
Eligible FA.

         (k) "Eligible Gross Production" means Gross Production that is used to
calculate the amount of a Production Retention Bonus, as determined annually in
accordance with the FA Compensation Schedule. The Gross Production of a
Participating Team shall count toward Eligible Gross Production regardless of
whether the Participating Team is compensated under the FA Compensation
Schedule.

         (l) "FA Compensation Schedule" means the Legg Mason Financial Advisor
Compensation Schedule that is in effect for a particular Plan Year.

         (m) "Fair Market Value" means an amount equal to the average of the
closing prices on the principal exchange on which Legg Mason Common Stock is
traded for the date on which the price is being determined (i.e., the Valuation
Date, Dividend Payment Date, Distribution Valuation Date or other specified
date) and the four (4) trading days immediately following the applicable date on
which the value is being determined or, if Legg Mason Common Stock is not then
traded on an exchange, such amount as is determined by the Committee, in its
discretion, using any reasonable method of valuation. Any decline in the actual
trading price of Legg Mason Common Stock during the five (5) day pricing period
shall be the sole risk of the FA.

         (n) "Financial Advisor" or "FA" means an employee who devotes all of
his or her working time to the generation of commission and fee revenues through
the sale of

                                       -2-

<PAGE>

investment products and services to the public and is compensated on a
commission basis. This definition excludes any executive office/departmental
personnel unless specifically included by separate agreement. Notwithstanding
the foregoing, a Branch Manager who receives non-commission compensation shall
be considered a "Financial Advisor" or "FA" and shall be considered a
Participating FA who is eligible to receive a Retention Bonus hereunder (but
determined solely on his or her personal Gross Production).

         (o) "Gross Production" means the gross commission and fee revenue
(other than investment banking fees and order fees, both of which are excluded
from the calculation of Gross Production) that is received by the Company from
sales of products and services by a Financial Advisor. If production is split
between one or more Financial Advisors, each Financial Advisor's "Gross
Production" will be based on his or her own cumulative production level.

         (p) "Inactive Participant" means a Participating FA was credited with a
Retention Bonus under the Plan and who continues to be employed by the Company
but who ceases to be an Eligible FA.

         (q) "Interest Account" means the investment account established for
Retention Bonuses pursuant to Section 5(a) and Section 6(c) of the Plan.

         (r) "Legg Mason Common Stock" means shares of common stock of Legg
Mason, Inc.

         (s) "Legg Mason Share Units" or "Share Units" means units that are
economically equivalent to, but are not actual, shares of Legg Mason Common
Stock.

         (t) "Monthly Credit Interest Amount" means for each month, the amount
determined by multiplying 0.40 (or the different number for the applicable Plan
Year as is set forth in the FA Compensation Schedule) by the Credit Interest
Asset Base for the FA for that month; however, a Monthly Credit Interest Amount
that is a negative number shall be deemed to be zero.

         (u) "Participating FA" means an Eligible FA who participates in the
Plan based on his or her Eligible Gross Production in any Plan Year.

         (v) "Participating Team" means a group of FAs who operate (and are
compensated) as a team and who are designated as a Participating Team by the
Company.

         (w) "Payment Date" means the date a FA receives a payment from the
Company pursuant to the Plan.

         (x) "Phantom Stock Account" means the investment account established
for Retention Bonuses pursuant to Section 5(a) and Section 6(d) of the Plan.

         (y) "Plan Year" means the calendar year.

                                       -3-

<PAGE>

             (z)  "Production Retention Bonus" means the retention bonus
calculated under Section 4(a) with respect to Gross Production in excess of the
applicable Gross Production threshold contained in the FA Compensation Schedule.
In the case of a Team Leader, such retention bonus shall be based on Gross
Production of the Participating Team in excess of the applicable Gross
Production threshold contained in the FA Compensation Schedule.

             (aa) "Retention Bonus" means the Production Retention Bonus and the
Credit Interest Retention Bonus.

             (bb) "Retirement" means a FA's termination of employment with the
Company (i) on or after age sixty-five (65); or (ii) at any time when the sum of
the FA's age at termination of employment and his or her years of service with
the Company equals at least seventy (70).

             (cc) "Team Leader" means the person designated as leader of a
Participating Team on the records of the Company.

             (dd) "Valuation Date" means February 15th of each year or, if that
day is not a day on which Legg Mason Common Stock is traded on the principal
exchange on which it is regularly traded, the next following trading day.

         3.  Plan Participation - Eligible FAs shall become participants in the
Plan on the last day of the first Plan Year during which they become
Participating FAs. In order to receive a Retention Bonus for any Plan Year
during which a Participating FA is employed, the FA must be an Eligible FA for
such Plan Year (provided, however, if the employment of a Participating FA
terminates during a Plan Year by reason of the FA's death, Disability or
Retirement, the FA may be entitled to a prorated Retention Bonus for such Plan
Year (determined in accordance with Section 4)).

         Retention Bonuses are designed to encourage continued employment with
the Company and to entice Eligible FAs to continue in their position as a
full-time FA. If a Participating FA ceases to be an Eligible FA (e.g., because
he or she ceases to be classified as a full-time FA), but still remains in the
employ of the Company, he/she will become an Inactive Participant. An Inactive
Participant shall remain eligible to receive Retention Bonuses that were
previously credited to his or her Account (and which are payable at a future
date if he/she remains employed by the Company), and the value of the Account of
an Inactive Participant shall continue to be credited with earnings pursuant to
Section 5 (subject to the forfeiture provisions of Section 7(a) if he/she does
not remain employed by the Company). However, an Inactive Participant shall not
be entitled to receive further Retention Bonuses with respect to his or her
subsequent period of employment with the Company in a capacity other than as an
Eligible FA.

         4.  Retention Bonuses - Retention Bonuses are designed to provide a
financial incentive for Participating FAs to remain employed by the Company and
to continue in the position of a full-time FA. The Plan also provides for
payment of Retention Bonuses in exchange for compliance with the provisions of
Section 10 following Retirement. In order to entice a Participating FA to remain
employed as an Eligible FA and/or to comply with the provisions of Section 10
following Retirement, the Company will credit the following amounts

                                       -4-

<PAGE>

to the Account of each Participating FA who is employed on the last day of the
Plan Year. Such credit shall be made following the end of each Plan Year
commencing with the 2003 Plan Year:

             (a) Production Retention Bonus - The amount determined by applying
the applicable rate schedule in the FA Compensation Schedule for the Plan Year
to the Participating FA's Eligible Gross Production for that Plan Year.

             (b) Credit Interest Retention Bonus - The sum of the Monthly Credit
Interest Amounts of the Participating FA for that Plan Year.

         Notwithstanding the foregoing, if the total amount to be credited to
the Account of a Participating FA under (a) and (b) above for a Plan Year is
less than One Hundred Dollars ($100.00), no amount will be credited to the
Account of such Participating FA for such Plan Year.

         Retention Bonuses which the Participating FA elects to invest in the
Phantom Stock Account will be allocated as of the Valuation Date following the
close of the Plan Year to which the Retention Bonus relates.

         If the employment of a Participating FA terminates during a Plan Year
by reason of the FA's death, Disability or Retirement, the FA shall be entitled
to a prorated Retention Bonus for such Plan Year. Such proration shall be made
by:

                 (i)  multiplying the applicable thresholds in Section 4(a) and
the related provisions of the FA Compensation Schedule by a fraction, the
numerator of which is the number of calendar days during which the FA was
employed by the Company and the denominator of which is 365; and

                 (ii) applying such adjusted thresholds and making the required
determinations with respect to the FA's Eligible Gross Production under Section
4(a) as of the last day of the month during which the FA terminated employment
and adding to that amount any Credit Interest Retention Bonus related to the
months in which the Participating FA was employed.

         5.  Establishment of FA Accounts

             (a) Account Established for Each Participating FA - An individual
Account shall be established on the books of the Company in the name of each
Participating FA, for the purpose of accounting for Retention Bonuses payable to
the FA, and to account for investment adjustments made pursuant to Section 6. A
separate sub-account shall be established with respect to Retention Bonuses
credited for each Plan Year (to which Retention Bonuses for the Plan Year and
any investment adjustments made pursuant to Section 6 shall be credited). Other
sub-accounts may be established as the Committee or the Company deems
appropriate to properly implement the provisions of the Plan.

             (b) Account Statements - As soon as practicable after the Valuation
Date, the Company shall provide each FA who has a balance in his or her Account
with a

                                       -5-

<PAGE>

statement showing the Retention Bonuses credited to his or her Account with
respect to each Plan Year, the manner in which Retention Bonuses for a
particular Plan Year are deemed to be invested, the date on which the FA is
scheduled to receive his or her Retention Bonus (and investment adjustments
thereon) for each Plan Year, and such other information as the Committee shall
deem relevant.

         6. Investment of Retention Bonuses - In order to give a Participating
FA the opportunity to share in the growth and profitability of the Company, and
to provide further incentive for Participating FAs to remain in the employ of
the Company (and to comply with the provisions of Section 10 following
Retirement), Retention Bonuses credited to an Account shall be deemed to be
invested in accordance with the provisions of this Section 6 pending payment.

             (a) Phantom Stock or Interest Credit - For investment purposes,
Retention Bonuses credited to a Participating FA's Account shall be allocated
to, and accrue in, either the Phantom Stock Account or Interest Account.

             (b) Investment Designation - Subject to such limitations, rules and
procedures as may from time to time be imposed by the Committee, each
Participating FA shall elect annually, prior to the end of each Plan Year, on a
form prescribed by the Committee, whether any Retention Bonuses for such Plan
Year shall be allocated to, and accrue in, the Interest Account or the Phantom
Stock Account. Once an election has been made for a particular Plan Year, it may
not be changed. A separate election may be made with respect to each Plan Year.
Except as the Committee shall otherwise determine, any investment election with
respect to the Retention Bonuses for a Plan Year shall apply to the Retention
Bonus for each following Plan Year unless and until a new investment election is
filed with the Committee. In the event the Committee does not receive an initial
investment election, or it receives an investment election which it deems to be
incomplete, unclear, not in accordance with procedures established by the
Committee, or otherwise improper, the Participating FA's existing investment
election then in effect shall remain in effect, unless the Committee provides
for, and permits, corrective action. If there is no existing investment
election, or, if after the expiration of any opportunity provided for corrective
action, the Committee still possesses incomplete investment instructions, the
Participating FA shall be deemed to have designated that any non-directed
Retention Bonus be allocated to the Interest Account.

             (c) Interest Account - The Company will establish an Interest
Account on its books and records for the benefit of each Participating FA and
shall credit such Interest Account with the Retention Bonuses allocated to the
Interest Account. As of the last day of each Plan Year, the balance of a FA's
Interest Account (as determined prior to the allocation of any Retention Bonus
for such Plan Year) shall be credited with an amount equal to one year's
interest based on the Credit Interest Rate. Retention Bonuses which the FA
elects to invest in the Interest Account will be allocated as of December 31 of
the Plan Year to which the Retention Bonus relates (but will not be included for
purposes of determining the amount of interest allocated for such Plan Year).

             (d) Phantom Stock Account - All Retention Bonuses for a Plan Year
that are allocated to the Phantom Stock Account for that Plan Year shall be
deemed converted into Legg Mason Share Units. The Company will establish a
Phantom Stock Account on its

                                       -6-

<PAGE>

books and records for the benefit of each Participating FA and shall credit such
Phantom Stock Account with the amount of Share Units resulting from the
conversion of the Retention Bonuses. The number of Share Units into which such
Retention Bonus shall be converted (calculated to four decimal places) will be
determined as of the Valuation Date and will be equal to the amount of the
Retention Bonus for the Plan Year divided by the Fair Market Value of a share of
Legg Mason Common Stock on the Valuation Date. The conversion of a Retention
Bonus into Legg Mason Share Units will be made by the Committee as soon as
administratively practicable after the Valuation Date following the Plan Year to
which the Retention Bonus relates.

                 (i)   Adjustment to Phantom Stock Account upon Dividend by the
Company - If, prior to a Payment Date, the Company pays any dividend (other than
in Legg Mason Common Stock) on its Common Stock, or makes any distribution
(other than in Legg Mason Common Stock) with respect thereto, the FA's Phantom
Stock Account will be credited with a number of additional Share Units
determined by dividing the amount of the dividend or other distribution
allocable to the Share Units already credited to the Phantom Stock Account as of
the record date for the dividend or distribution, by 95% of the Fair Market
Value of a share of Legg Mason Common Stock on the payment date for the dividend
or distribution (the "Dividend Payment Date"). Amounts to be credited under this
subsection 6(d)(i) will be credited as soon as administratively practicable
after the applicable Dividend Payment Date.

                 (ii)  Adjustment to Phantom Stock Account upon Certain Events -
In the event that, prior to a Payment Date, the number of outstanding shares of
Legg Mason Common Stock is changed by reason of a stock split, stock dividend,
combination of shares or recapitalization, or Legg Mason Common Stock is
converted into or exchanged for other shares as a result of a merger,
consolidation, sale of assets or other reorganization or recapitalization, the
number of Share Units then credited to a FA's Phantom Stock Account will be
appropriately adjusted so as to reflect such change (based upon the best
estimate of the Company as to relative values).

                 (iii) Rights as LMI Stockholder - Neither the allocation of
Retention Bonuses to the Phantom Stock Account, nor any other provision of the
Plan, shall confer or be construed as conferring upon a FA any rights as a
stockholder of the Company or any right to have access to the books and records
of the Company or any affiliate or subsidiary.

         7.  Eligibility for Payment of Account -

             (a) Continued Employment - The Retention Bonuses credited to a
Participating FA's Account for a Plan Year (together with any related investment
adjustments thereto) are not intended to constitute compensation for specific
services or for commissions or fee revenue generated during a particular year,
but are additional discretionary payments that are designed to encourage a FA to
remain employed by the Company for a period of six years following the close of
such Plan Year in which a Retention Bonus is credited to an Account.
Accordingly, the Retention Bonuses for a particular Plan Year (together with any
related investment adjustments thereto) shall only be paid if the FA remains
continuously employed by the Company through the last day of the sixth (6th)
Plan Year following the Plan Year to which the Retention Bonuses relates. If a
Participating FA's employment with the Company terminates for any reason
(whether involuntary or voluntary and whether with or without cause) other than

                                       -7-

<PAGE>

death, Disability or Retirement on or before the last day of the sixth Plan Year
following the year to which the Retention Bonuses relates, the portion of the
Participating FA's Interest Account and Phantom Stock Account that relates to
such Retention Bonuses (and the related investment adjustments thereto) shall be
forfeited in their entirety.

             (b) Death or Disability - Upon termination of employment with the
Company due to death or Disability, the amount credited to the Account of a FA
shall be paid in accordance with the provisions of Section 8.

             (c) Retirement - Upon termination of employment with the Company
due to Retirement, a FA shall be entitled to receive the amount credited to his
or her Account in accordance with the provisions of Section 8, conditioned upon,
and in exchange for, his or her continued compliance with the provisions of
Section 10.

             (d) Forfeitures - Forfeited amounts (including amounts forfeited
pursuant to Section 10) shall revert to the Company and will not be allocated to
other Participating FAs.

         8.  Timing of Payments -

             (a) During Employment - Except for cases of Retirement, death or
Disability, and subject to Section 11, payments of the Retention Bonuses
credited to a FA's Account (together with any investment adjustments made
pursuant to Section 6 with respect to such Retention Bonus) shall be made within
seventy-five (75) days after the last day of the sixth (6th) Plan Year following
the Plan Year to which the Retention Bonus relates.

             (b) Retirement - In the event a FA's employment with the Company
terminates as a result of Retirement, payment of the FA's remaining Account
(including any prorated Retention Bonus to which the FA may be entitled for the
Plan Year pursuant to Section 4) shall be made, subject to Section 11, within
seventy-five (75) days after the close of the Plan Year following the Plan Year
in which the FA retired, unless the FA has forfeited his or her right to payment
pursuant to Section 10.

             (c) Disability of FA - In the event a FA's employment with the
Company terminates as a result of the FA's Disability, all amounts in the FA's
Account (including any prorated Retention Bonus to which the FA may be entitled
for the Plan Year pursuant to Section 4) shall be paid, subject to Section 11,
within seventy-five (75) days following the later of (i) the date on which the
FA's employment terminated and (ii) the date the Committee determines that the
FA's employment terminated as a result of the FA's Disability. The Committee, in
its sole discretion, may determine that a FA has a Disability and that the FA's
employment with the Company terminated as a result of such Disability at any
time before, at the time of, or after the FA's termination of employment.

             (d) Death -

                 (i) Death During Employment - If a FA's employment with the
Company terminates as a result of the FA's death, all amounts in the FA's
Account (including any prorated Retention Bonus to which the FA may be entitled
for the Plan Year

                                       -8-

<PAGE>

pursuant to Section 4) shall be paid to the FA's beneficiary (as determined
pursuant to Section 8(d)(iii)) within seventy-five (75) days following the date
of the FA's death.

                 (ii)  Death Following Retirement - In the event of a FA's death
subsequent to the date of the FA's Retirement and at a time during which the
FA's remaining Account under the Plan has not been distributed, all amounts then
remaining in the FA's Account shall be paid to the FA's beneficiary (as
determined pursuant to Section 8(d)(iii)) within seventy-five (75) days
following Committee's receipt of written notification of the FA's death.

                 (iii) Designation of Beneficiary - Each FA from time to time
may designate, on such form as the Committee may prescribe from time to time,
any person or persons (who may be named contingently or successively) to receive
any amount payable under the Plan upon or after his or her death, and such
designation may be changed from time to time by the FA by filing a new
designation with the Committee. Each designation will revoke all prior
designations by the FA, shall be on a form prescribed by the Committee, and will
be effective only when filed in writing with the Committee during the FA's
lifetime. In the absence of a valid beneficiary designation, or if, at the time
any amount is payable to a FA or beneficiary, there is no living beneficiary
eligible to receive the payment that has been validly named by the FA, then
Company shall pay any such amount to the FA's surviving spouse (if the FA was
legally married at the time of his or her death) or if there is no surviving
spouse, to the FA's estate. In determining the existence or identity of anyone
entitled to payment, the Committee may rely conclusively upon information
supplied by the personal representative of the FA's estate. In the event of a
lack of adequate information having been supplied to the Committee, or in the
event that any question arises as to the existence or identity of anyone
entitled to receive a payment as aforesaid, or in the event that a dispute
arises with respect to any such payment, or in the event that a beneficiary
designation conflicts with applicable law, or in the event the Committee is in
doubt for any other reason as to the right of any person to receive a payment as
beneficiary then, notwithstanding the foregoing, the Company, in its sole
discretion, may, in complete discharge, and without liability for any tax or
other consequences which might flow therefrom: (i) distribute the payment to the
FA's estate, (ii) retain such payment, without liability for interest, until the
rights thereto are determined, or (iii) deposit the payment into any court of
competent jurisdiction.

         9.  Form of Payment -

             (a) Interest Account - The portion allocable to a FA's Interest
Account shall be paid in cash.

             (b) Phantom Stock Account - The portion allocable to a FA's Phantom
Stock Account shall be paid in whole shares of Legg Mason Common Stock as
described below, based on the Fair Market Value of Legg Mason Common Stock on
the Distribution Valuation Date. Whole Share Units to be distributed within an
FA's Phantom Stock Account will be converted into shares of Legg Mason Common
Stock on a one-for-one basis. The portion of a FA's Phantom Stock Account that
represents fractional Share Units and thus cannot be converted into whole shares
of Legg Mason Common Stock shall be distributed in cash. There is no limit on
the total number of shares of Legg Mason Common Stock that may be

                                       -9-

<PAGE>

distributed under this Section. Any decline in the actual trading price of Legg
Mason Common Stock during the period between the Distribution Valuation Date and
the applicable Payment Date, as well as any brokerage commissions, fees or other
charges incurred by a FA in connection with the disposition of any shares of
Legg Mason Common Stock that are distributed to the FA, shall be the sole risk
and responsibility of the FA.

         10. Non-Compete - If a retired FA engages in competition with the
Company prior to the date of payment, the FA's Account shall be forfeited in its
entirety. Forfeited amounts shall revert to the Company and will not be
allocated to other FAs.

             (a) For purpose of this Section, a FA shall be deemed to have
"engaged in competition" with the Company if he or she:

                 (i)   discloses the names of or otherwise identifies any of the
Company's customers to any person, firm, corporation, association, or other
entity which provides products or services that are similar to those provided by
the Company;

                 (ii)  discloses to any person, firm, corporation, association,
or other entity any information regarding the Company's general business
practices or procedures, methods of sale, list of products, personnel
information or any other information concerning the Company's business;

                 (iii) owns, manages, operates, controls, is employed by, acts
as an agent for, participates in or is connected in any manner with the
ownership, management, operation or control of any firm, corporation,
association or other entity which is engaged in businesses which are or may be
competitive to the business of the Company; provided further that this
restrictive covenant shall encompass the State of Maryland and any other states
where the Company is engaged in business, and every city, county, and other
political subdivision of such states; or

                 (iv)  solicits or calls, either by himself or at his or her
direction has any other person or firm solicit or call, any of the customers of
the Company on whom the FA called, with whom the FA became acquainted, or of
whom the FA learned during his or her employment by the Company.

             (b) The determination of whether a FA has violated the terms of
Section 10(a) shall be made by the Committee, in its sole and absolute
discretion, and the determination of the Committee shall be final, conclusive
and binding upon both the FA (or any person or entity claiming through the FA)
and the Company.

             (c) As a condition precedent to any distribution, the Committee may
require a certificate from the FA certifying that he or she has not violated any
of the provisions of Section 10(a).

             (d) It is the intention of the Company and the FA that this Section
be given the broadest protection allowed by law with regard to the restrictions
herein contained. Each restriction set forth in this Section shall be construed
as a condition separate and apart from any other restriction or condition. To
the extent that any restriction contained in this Section is

                                      -10-

<PAGE>

determined by any court of competent jurisdiction to be unenforceable by reason
of it being extended for too great a period of time, or as encompassing too
large a geographic area, or over too great a range of activity, or any
combination of these elements, then such restriction shall be interpreted to
extend only over the maximum period of time, geographic area, and range of
activities which the court deems reasonable and enforceable. The FA agrees that
the restrictions described in this Section are reasonable and necessary to
protect legitimate interests of the Company.

             (e) In the event a FA desires a ruling as to the potential
application of this Section, he may request a ruling from the Committee in
accordance with Section 16.

             (f) If the Committee in its discretion determines that an activity
otherwise described herein would not be injurious to the Company, it may waive
the application of this Section to such activity, which waiver shall be binding
upon the FA and the Company. The Committee shall exercise such discretion in a
uniform, nondiscriminatory manner.

         11. Withholding Taxes - Amounts payable under the Plan shall be subject
to such deductions or withholding as may be required by law. Notwithstanding
anything herein to the contrary, the Company may delay any distribution under
the Plan until the recipient of the distribution has separately provided for the
payment of any required withholding taxes with respect to the distribution by
check or other method approved by the Committee in its sole discretion. The
Company, to the extent permitted or required by law, shall have the right (i) to
deduct any federal, state or local taxes of any kind required by law to be
withheld with respect to any taxable event under the Plan from any amount
payable hereunder or from any wage, salary, commission, bonus or other payment
otherwise due to a FA, and (ii) to retain or sell without notice a sufficient
number of shares of Legg Mason Common Stock to be issued to such FA (or any
other person entitled to receive the payment due a FA) to cover any such taxes.

         12. Assignment of Benefits - No amount payable, or other right or
benefit, under the Plan will, except as otherwise specifically provided by the
Plan or by applicable law, be subject to sale, assignment, transfer, pledge,
encumbrance, attachment, garnishment or levy prior to distribution to a FA.
Since the Plan is intended to be a non-qualified, unfunded plan not subject to
the Employment Retirement Income Security Act of 1974, as amended, payments
under the Plan will not be subject to the provisions of any qualified domestic
relations order (as defined under the Internal Revenue Code of 1986, as amended)
applicable to a FA's Account.

         13. Right to Offset - Notwithstanding any provision herein to the
contrary, any distribution payable under the Plan may be used, at the discretion
of the Committee and subject to compliance with applicable law, to offset any
debt owed by a FA to the Company at the date such distribution would otherwise
be paid. The Company may withhold distributions payable under the Plan to offset
any debts or other liabilities owed by a FA to the Company. If the Company is
aware of any errors, loans outstanding, or outstanding or pending liabilities of
a FA, the Company may withhold distributions under the Plan until such time as
the liabilities are satisfied or the Company has determined that an outstanding
or pending liability no longer exists.

         14. Unfunded Nature of the Plan - The Company will not be required to
purchase, hold or dispose of any investments with respect to amounts credited to
the Account of

                                      -11-

<PAGE>

any FA participating in the Plan. A FA has no interest in the Account or in any
investments the Company may purchase with such amounts, except as a general,
unsecured creditor of the Company.

              The Plan at all times shall be entirely unfunded. The FA's Account
(including the Interest Account and Phantom Stock Account) is merely a record
for measuring and determining the amount of Retention Bonuses to be paid by the
Company to, or with respect to, the FA under the Plan, and such Account shall be
established solely for such bookkeeping purposes. The Company shall not be
required to segregate any funds or other assets to be used for payment of
benefits under the Plan. The FA's Account shall not be, or be considered as
evidence of the creation of, a trust fund, an escrow or any other segregation of
assets for the benefit of the FA or any beneficiary of the FA. There is no
guaranty of benefit payments to the FA.

              The obligation of the Company to make the payments described in
the Plan is an unsecured contractual obligation only, and neither the FA nor any
beneficiary of the FA shall have any beneficial or preferred interest by way of
trust, escrow, lien or otherwise in and to any specific assets or funds. The FA
and each beneficiary of the FA shall look solely to the general credit of the
Company for satisfaction of any obligations due or to become due under the Plan.

              Should the Company elect to make contributions to a trust
(hereinafter referred to as the "Trust") to assist the Company in paying the
benefits which may accrue hereunder, the amounts contributed shall be used to
purchase the deemed investments under Section 6, subject to application of the
provisions of this Section 14 to the actual investments. However, contributions
to the Trust shall not reduce or otherwise affect the Company's liability to pay
benefits under the Plan (which benefits may be paid from the Trust or from the
Company's general assets, in the discretion of the Company), except that the
Company's liability shall be reduced by actual benefit payments from the Trust
(and the Account shall be appropriately adjusted to reflect such payments). If
any such investments, or any contributions to the Trust, are made by the
Company, such investments shall have been made solely for the purpose of aiding
the Company in meeting its obligations under the Plan, and, except for actual
contributions to the Trust, no trust or trust fund is intended. To the extent
that the Company does, in its discretion, purchase or hold any such investments
(other than through contributions to the Trust), the Company will be named sole
owner of all such investments and of all rights and privileges conferred by the
terms of the instruments or certificates evidencing such investments. Nothing
stated herein will cause such investments, or the Trust, to form part of the
Account, or to be treated as anything but the general assets of the Company,
subject to the claims of its general creditors, nor will anything stated herein
cause such investments, or the Trust, to represent the vested, secured or
preferred interest of the FA. The Company shall have the right at any time to
use such investments not held in the Trust in the ordinary course of its
business. Neither the FA nor any of his or her beneficiaries shall at any time
have any interest in the Account or the Trust or in any such investments, except
as a general, unsecured creditor of the Company to the extent of the Retention
Bonuses which are the subject of the Plan.

         15.  Effect on Employment Rights and Other Benefit Programs - Neither
participation in nor any of the provisions of the Plan shall give the FA any
right to be retained in

                                      -12-

<PAGE>

the employment of the Company. The Plan shall not be construed as a contract of
employment. The Company maintains an employment-at-will policy. As a FA is free
to end his or her employment with the Company at any time for any reason or no
reason, the Company is free to end the employment with a FA at any time for any
reason or no reason. Furthermore, the Company may end at any time a FA's
employment as a Financial Advisor. In the event a FA is no longer employed as a
Financial Advisor or otherwise ceases to be an Eligible FA, the FA will no
longer be entitled to Retention Bonuses pursuant to the Plan. However, as long
as a FA continues to be employed in good standing by the Company for the
requisite period, the FA shall continue to be entitled to the Retention Bonuses
previously credited to the FA's Account under the Plan. The Plan is in addition
to, and not in lieu of, any other employee benefit plan or program in which the
FA may be or become eligible to participate by reason of employment with the
Company, and the timing of receipt of benefits hereunder shall have no effect on
contributions to or benefits under such other plans or programs except as the
provisions hereof and of each such plan or program may specify.

         16.  Administration - The Committee, as constituted from time to time,
shall have full power to interpret, construe and administer the Plan, including
authority to determine any dispute or claim with respect thereto. The
determination of the Committee in any matter within the powers and discretion
granted to it under the Plan, made in good faith, shall be binding and
conclusive upon the Company, the FA and all other persons having any right or
benefit hereunder. If the FA is a member of the Committee at any time, the FA
shall have no authority as such member with respect to any matter specifically
affecting the FA's interest hereunder (such as determination of the amount, form
or time of benefit payments to the FA), all such authority being reserved to the
other Committee members, to the exclusion of the FA, and the FA shall act only
in his or her individual capacity in connection with any such matter.

         17.  Paperless Communications - Notwithstanding anything contained
herein to the contrary, the Committee from time to time may establish uniform
procedures whereby with respect to any or all instances herein where a writing
is required, including but not limited to any required written notice, election,
consent, authorization, instruction, direction, designation, request or claim,
communication may be made by any other means designated by the Committee,
including by paperless communication, and such alternative communication shall
be deemed to constitute a writing to the extent permitted by applicable law,
provided that such alternative communication is carried out in accordance with
such procedures in effect at such time.

         18.  Arbitration - As a condition precedent to the crediting and
receipt of Retention Bonuses under the Plan, each FA agrees that any controversy
or dispute arising under the Plan which cannot be resolved by the Committee
shall be submitted for arbitration upon demand of either party in accordance
with the rules of the National Association of Securities Dealers, Inc. or the
New York Stock Exchange, Inc.

         19.  Controlling Law - The Plan shall be construed, and the legal
relations between the parties in connection with any dispute relating to the
Plan shall be determined, in accordance with the laws of the State of Maryland;
provided, however, that employment laws (including wage and hour laws) shall be
based on the law of the jurisdiction in which the FA is employed.

                                      -13-

<PAGE>

         20.  Amendment or Termination - The Company reserves the right to amend
or terminate the Plan at any time. Any such amendment or termination shall be by
action of the Board of Directors of the Company or any Executive Committee
thereof.

         21.  Effect of Amendment or Termination - No amendment or termination
of the Plan shall directly or indirectly affect the rights of any FA (or the
FA's designated beneficiary) to payment of the amount in his or her Account, to
the extent that such amount was payable under the terms of the Plan prior to the
effective date of such amendment or termination.

                                      -14-

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