Document:

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                                                                     EXHIBIT 4.1
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                                 TRUST INDENTURE

                       BETWEEN FIRST SHARES BANCORP, INC.

                        AND THE HUNTINGTON NATIONAL BANK,
                                   AS TRUSTEE

                              --------------------

                                             , 2002
                              ---------------

                              --------------------

                           FIRST SHARES BANCORP, INC.

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                                TABLE OF CONTENTS
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                                                    ARTICLE ONE
                                          DEFINITIONS AND OTHER PROVISIONS
                                              OF GENERAL APPLICATION

   Section 101.  Definitions......................................................................................1

   Section 102.  Compliance Certificates and Opinions.............................................................8

   Section 103.  Form of Documents Delivered to Trustee...........................................................8

   Section 104.  Acts of Debentureholders.........................................................................9

   Section 105.  Notices, etc.  to Trustee and Company...........................................................10

   Section 106.  Notices to Debentureholders; Waiver.............................................................10

   Section 107.  Incorporation of Trust Indenture Act............................................................11

   Section 108.  Effect of Headings and Table of Contents........................................................11

   Section 109.  Successors and Assigns..........................................................................11

   Section 110.  Separability Clause.............................................................................11

   Section 111.  Benefits of Indenture...........................................................................11

   Section 112.  Governing Law...................................................................................11

   Section 113.  Legal Holidays..................................................................................11

                                                    ARTICLE TWO
                                                  DEBENTURE FORMS

   Section 201.  Forms Generally.................................................................................12

   Section 202.  Form of Commonly Registered Debenture...........................................................12

   Section 203.  Form of Trustee's Certificate of Authentication
                 of Commonly Registered Debentures...............................................................18

   Section 204.  Form of Unrestricted Debenture..................................................................19

   Section 205.  Form of Trustee's Certificate of Authentication of Unrestricted Debentures......................23

                                                   ARTICLE THREE
                                                  THE DEBENTURES

   Section 301.  Title and Terms.................................................................................24

   Section 302.  Denominations...................................................................................24
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   Section 303.  Execution, Authentication and Delivery and Dating...............................................24

   Section 304.  Temporary Commonly Registered Debentures and Unrestricted Debentures............................25

   Section 305.  Registration, Transfer and Exchange.............................................................26

   Section 306.  Mutilated, Destroyed, Lost or Stolen Debentures.................................................27

   Section 307.  Payment of Interest; Interest Rights Preserved..................................................28

   Section 308.  Persons Deemed Owners...........................................................................29

   Section 309.  Cancellation....................................................................................30

   Section 310.  Authentication and Delivery of Original Issue...................................................30

   Section 311.  Issuance of Debentures upon Partial Payments under Equity Contracts.............................30

   Section 312.  Computation of Interest.........................................................................31

                                                   ARTICLE FOUR
                                            SUBORDINATION OF DEBENTURES

   Section 401.  Agreement to Subordinate........................................................................31

   Section 402.  Payments Upon Distribution of Assets............................................................31

   Section 403.  Subrogation.....................................................................................33

   Section 404.  Obligation of Company Unconditional.............................................................33

   Section 405.  Rights of Holders of Senior Indebtedness Not Impaired...........................................34

   Section 406.  Obligation of Company to Pay Debentures Not Impaired............................................34

   Section 407.  Trustee Authorized to Act for Debentureholder...................................................34

   Section 408.  Trustee Not Charged with Knowledge of Senior Indebtedness.......................................34

   Section 409.  Applicability of Article Four...................................................................35

   Section 410.  "Trustee" to Include Paying Agent...............................................................35

                                                   ARTICLE FIVE
                                            SATISFACTION AND DISCHARGE

   Section 501.  Satisfaction and Discharge of Indenture.........................................................35

   Section 502.  Application of Trust Money......................................................................36

                                                    ARTICLE SIX
                                                     REMEDIES

   Section 601.  Events of Default...............................................................................36
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   Section 602.  Acceleration of Maturity; Rescission and Annulment..............................................37

   Section 603.  Collection of Indebtedness and Suits for Enforcement by Trustee.................................38

   Section 604.  Trustee May File Proofs of Claim................................................................39

   Section 605.  Trustee May Enforce Claims Without Possession of Debentures.....................................40

   Section 606.  Application of Money Collected..................................................................40

   Section 607.  Limitation on Suits.............................................................................41

   Section 608.  Unconditional Right of Holders to Receive Principal, Premium and Interest.......................41

   Section 609.  Restoration of Rights and Remedies..............................................................41

   Section 610.  Rights and Remedies Cumulative..................................................................42

   Section 611.  Delay or Omission Not Waiver....................................................................42

   Section 612.  Control by Debentureholders.....................................................................42

   Section 613.  Waiver of Past Defaults.........................................................................42

   Section 614.  Undertaking for Costs...........................................................................43

                                                   ARTICLE SEVEN
                                                    THE TRUSTEE

   Section 701.  Certain Duties and Responsibilities.............................................................43

   Section 702.  Notice of Defaults..............................................................................44

   Section 703.  Certain Rights of Trustee.......................................................................45

   Section 704.  Not Responsible for Recitals or Issuance of Debentures..........................................46

   Section 705.  May Hold Debentures.............................................................................46

   Section 706.  Money Held in Trust.............................................................................46

   Section 707.  Compensation and Reimbursement..................................................................46

   Section 708.  Disqualification; Conflicting Interests.........................................................47

   Section 709.  Corporate Trustee Required; Eligibility.........................................................47

   Section 710.  Resignation and Removal; Appointment of Successor...............................................47

   Section 711.  Acceptance of Appointment by Successor..........................................................48

   Section 712.  Merger, Conversion, Consolidation or Succession to Business.....................................49

   Section 713.  Preferential Collection of Claims Against Company...............................................49

   Section 714.  Appointment of Authenticating Agent.............................................................49
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                                                   ARTICLE EIGHT
                                        DEBENTUREHOLDERS' LISTS AND REPORTS
                                              BY TRUSTEE AND COMPANY

   Section 801.  Company to Furnish Trustee Names and Addresses of Debentureholders..............................51

   Section 802.  Preservation of Information; Communications to Debentureholders.................................51

   Section 803.  Reports by Trustee..............................................................................51

   Section 804.  Reports by Company..............................................................................51

                                                   ARTICLE NINE
                                  CONSOLIDATION, MERGER, CONVEYANCE AND TRANSFER

   Section 901.  Company May Consolidate, etc., Only on Certain Terms............................................52

   Section 902.  Successor Corporation Substituted...............................................................53

                                                    ARTICLE TEN
                                              SUPPLEMENTAL INDENTURES

   Section 1001.  Supplemental Indentures without Consent of Debentureholders....................................53

   Section 1002.  Supplemental Indentures with Consent of Holders................................................54

   Section 1003.  Execution of Supplemental Indentures...........................................................55

   Section 1004.  Effect of Supplemental Indentures..............................................................55

   Section 1005.  Reference in Debentures to Supplemental Indentures.............................................55

                                                  ARTICLE ELEVEN
                                                     COVENANTS

   Section 1101.  Payment of Principal, Premium and Interest.....................................................55

   Section 1102.  Maintenance of Office or Agency................................................................55

   Section 1103.  Money for Debenture Payments to be Held in Trust...............................................56

   Section 1104.  Corporate Existence............................................................................57

   Section 1105.  Restrictions on Disposition of Capital Stock of Major Subsidiaries.............................58

   Section 1106.  Statement as to Compliance.....................................................................58
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                                                  ARTICLE TWELVE
                                             REDEMPTION OF DEBENTURES

   Section 1201.  Conditions; Redemption Price...................................................................58

   Section 1202.  Notice of Redemption...........................................................................59

   Section 1203.  Payment of Debentures on Redemption............................................................60

                                                 ARTICLE THIRTEEN
                                    EXCHANGE OF COMMONLY REGISTERED DEBENTURES
                                            FOR UNRESTRICTED DEBENTURES

   Section 1301.  Exchange Privilege.............................................................................60

   Section 1302.  Manner of Exercise of Exchange Privilege.......................................................61

   Section 1303.  Conversion of Commonly Registered Debentures
                  Upon Cancellation of Equity Contracts..........................................................62

                                                 ARTICLE FOURTEEN
                                      EXCHANGE OF UNRESTRICTED DEBENTURES FOR
                                          COMMONLY REGISTERED DEBENTURES

   Section 1401.  Exchange Privilege.............................................................................62

   Section 1402.  Manner of Exercise of Exchange Privilege.......................................................63
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                                       v

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         INDENTURE dated as of ___________________, 2002, between FIRST SHARES
BANCORP, INC., an Indiana corporation (hereinafter called the "Company") having
its principal office at 996 South State Road 135, Greenwood, Indiana 46143, and
THE HUNTINGTON NATIONAL BANK, a national banking association (hereinafter called
the "Trustee").

                             RECITALS OF THE COMPANY

         The Company has duly authorized the creation of an issue of its
debentures of substantially the tenor and amount hereinafter set forth
(hereinafter called the "Debentures") and to provide therefor the Company has
duly authorized the execution and delivery of this Indenture. Debentures may be
issued either as Debentures which may be transferred only upon compliance with
certain provisions set forth or referred to therein (hereinafter called
"Commonly Registered Debentures") and Debentures which may be transferred upon
compliance with the usual requirements for transfer of negotiable securities
(hereinafter called "Unrestricted Debentures").

         All things necessary to make the Debentures, when executed by the
Company and authenticated and delivered by the Trustee hereunder and duly issued
by the Company in accordance with the provisions of this Indenture, the valid
obligations of the Company and to make this Indenture a valid agreement of the
Company, in accordance with their and its respective terms, have been done.

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         For and in consideration of the premises and the value received by the
Company for the Debentures upon issuance thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the
Debentures, as follows:

                                   ARTICLE ONE

                       DEFINITIONS AND OTHER PROVISIONS OF
                               GENERAL APPLICATION

         Section 101.  Definitions.

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

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

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         (2)      all other terms used herein which are defined in the Trust
                  Indenture Act, either directly or by reference therein, have
                  the meanings assigned to them therein, except that in the
                  event of a conflict, any definition in this Indenture
                  controls;

         (3)      all accounting terms not otherwise defined herein have the
                  meanings assigned to them in accordance with generally
                  accepted accounting principles; and

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

         Certain terms, used principally in Article Seven, are defined in that
Article.

         "Act" when used with respect to any Holder has the meaning specified in
Section 104.

         "Adverse Capital Determination" means the occurrence of any of the
following:

         (i)      the receipt by the Company of written notice (whether in an
                  examination report of the Company or otherwise) from the
                  Federal Reserve Board to the effect that all or any
                  substantial portion of the Debentures will not be considered
                  and, under the laws, rules, regulations or guidelines then
                  existing will not in the future (regardless of the amount of
                  the Company's other capital) be eligible to be considered, by
                  the Federal Reserve Board as capital of the Company for the
                  purpose of measurement or assessment by the Federal Reserve
                  Board of the Company's capital adequacy; or

         (ii)     the receipt by the Company of written advice from its counsel
                  (other than a regular employee of the Company) that there is a
                  substantial likelihood, arising as a result of governmental
                  action (including, without limitation, a change of law,
                  regulation, rule, guideline or ruling or interpretation,
                  whether or not requested by the Company), that all or any
                  substantial portion of the Debentures will not be considered
                  and, under the laws, rules, regulations or guidelines then
                  existing will not in the future (regardless of the amount of
                  the Company's other capital) be eligible to be considered, by
                  the Federal Reserve Board as capital of the Company for the
                  purpose of measurement or assessment by the Federal Reserve
                  Board of the Company's capital adequacy.

         Such Adverse Capital Determination shall be deemed to have occurred
upon the date of the occurrence of the earlier of the events set forth in clause
(i) and clause (ii) of this definition and shall be evidenced by an Opinion of
Counsel which counsel shall not be a regular employee of the Company) furnished
to the Trustee.

         "Adverse Tax Determination" means the occurrence of any of the
following:

         (i)      the issuance of a written notice of deficiency or other final
                  notice to the Company from, or any other action taken by, the
                  Internal Revenue Service of the United

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                  States which is not subject to further review or rehearing
                  except by the filing of a petition in the Tax Court of the
                  United States or by other judicial proceeding with or having
                  the effect that interest paid on the Debentures is not fully
                  deductible from the gross income of the Company for Federal
                  income tax purposes; or

         (ii)     the receipt by the Company of written advice from its counsel
                  (other than a regular employee of the Company) that there is a
                  substantial likelihood (including a change of law, issuance of
                  temporary, proposed or final Treasury Regulations or issuance
                  of an Internal Revenue Service ruling) that the Internal
                  Revenue Service will take the position that interest paid on
                  the Debentures is not fully deductible from the gross income
                  of the Company for Federal income tax purposes.

         Such Adverse Tax Determination shall be deemed to have occurred upon
the date of the occurrence of the earlier of the events set forth in clause (i)
and clause (ii) of this definition and shall be evidenced by an Opinion of
Counsel (which counsel shall not be a regular employee of the Company) furnished
to the Trustee.

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

         "Authenticating Agent" means any Person authorized by the Trustee to
act on behalf of the Trustee to authenticate Debentures.

         "Authorized Newspaper" means a newspaper of general circulation in the
relevant area, printed in the English language and customarily published on each
Business Day.

         "Bank" means First Bank, Greenwood, Indiana, a banking institution
wholly owned by the Company and duly organized and existing under the laws of
the State of Indiana, and any successor to its corporate trust business.

         "Board of Directors" means either the board of directors of the Company
or any duly authorized committee of that Board.

         "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification and delivered to the Trustee.

         "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday except any of such days on which banking institutions in the State of
Indiana are closed pursuant to authorization of law.

                                       3
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         "Collateralized Equity Contract" has the meaning specified in the
recitals to the Master Equity Contract.

         "Commission" means the Securities and Exchange Commission, as from time
to time instituted, created under the Securities Exchange Art of 1934, or if at
any time after the execution of this Indenture such Commission is not existing
and performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties on such date.

         "Common Stock" has the meaning specified in the recitals to the Master
Equity Contract.

         "Commonly Registered Equity Contract" has the meaning specified in the
recitals to the Master Equity Contract.

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

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

         "Corporate Trust Office" means the corporate trust office of the
Trustee in Columbus, Ohio, at which at any particular time its corporate trust
business shall be administered, which office at the date of the execution of
this Indenture is located at 7 Easton Oval, EA4E63, Columbus, Ohio 43219.

         "Debentureholder" means a Person in whose name a Debenture is
registered in the Debenture Register.

         "Debenture Register" and "Debenture Registrar" have the respective
meanings specified in Section 305.

         "Default" has the meaning specified in Section 603.

         "Default Situation" means any event which is, or after notice or lapse
of time, or both, would become, a Default or an Event of Default.

         "Defaulted Interest" has the meaning specified in Section 307.

         "Equity Contract" has the meaning specified in the recitals to the
Master Equity Contract.

         "Equity Contract Agent" means First Bank, Greenwood, Indiana, as Equity
Contract Agent, and its successors in such capacity as provided in the Master
Equity Contract.

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         "Event of Default" has the meaning specified in Section 601.

         "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System.

         "Holder" when used with respect to any Debenture means a
Debentureholder.

         "Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof.

         "Independent" when used with respect to any specified Person means such
a Person who (i) is in fact independent, (ii) does not have any direct financial
interest or any material indirect financial interest in the Company or in any
other obligor upon the Debentures or in any Affiliate of the Company or of such
other obligor, and (iii) is not connected with the Company or such other
obligor, or any Affiliate of the Company or such other obligor as an officer,
employee, promoter, underwriter, trustee, partner, director or person performing
similar functions., but, in case of an accountant, may be regularly retained to
make annual and other similar audits of the books of the Company or any
Affiliate thereof. Whenever it is herein provided that any Independent Person's
opinion or certificate shall be furnished to the Trustee, such Person shall be
appointed by a Company Order and approved by the Trustee in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has
read this definition and that the signer is Independent within the meaning
hereof.

         "Interest Payment Date" means the Stated Maturity of an installment of
interest on the Debentures.

         "Major Subsidiary" means any subsidiary consolidated with the Company
for financial reporting purposes the assets of which, as shown on such
subsidiary's balance sheet as of the end of the fiscal quarter immediately
preceding any determination required hereunder, equal or exceed twenty percent
(20%) of the consolidated assets of the Company as shown on its consolidated
balance sheet as of the end of such quarter.

         "Master Equity Contract" means that certain Equity Contract Agency
Agreement dated as of ___________________, 2002, between the Company and First
Bank, Greenwood, Indiana, as Equity Contract Agent, as it may from time to time
be supplemented or amended.

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

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board, President or any Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered
to the Trustee.

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<PAGE>

         "Opinion of Counsel" means a written opinion of counsel, who may
(except as otherwise expressly provided in this Indenture) be counsel for the
Company or other counsel acceptable to the Trustee.

         "Outstanding" when used with respect to Debentures means, as of the
date of determination, all Debentures theretofore authenticated and delivered
under this Indenture, except:

         (i)      Debentures theretofore cancelled by the Trustee or delivered
                  to the Trustee for cancellation;

         (ii)     Debentures for the payment or redemption of which money in the
                  necessary amount has been theretofore deposited with the
                  Trustee or any Paying Agent (other than the Company) in trust
                  for the Holders of such Debentures; provided that, if such
                  Debentures are to be redeemed, notice of such redemption has
                  been duly given pursuant to this Indenture or provision
                  therefor satisfactory to the Trustee has been made; and

         (iii)    Debentures in exchange for or in lieu of which other
                  Debentures have been authenticated and delivered pursuant to
                  this Indenture;

provided, however, that in determining whether the Holders of the requisite
principal amount of Debentures Outstanding have given any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder,
Debentures owned by the Company or any other obligor upon the Debentures or any
Affiliate of the Company or such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent, waiver or other action, only Debentures which the Trustee knows
to be so owned shall be so disregarded. Debentures so owned which have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Trustee the pledgee's right so to act with respect to
such Debentures and that the pledgee is not the Company or any other obligor
upon the Debentures or any Affiliate of the Company or such other obligor.

         "Paying Agent" means any Person authorized by the Company to pay the
principal of, premium (if any) or interest on any Debenture on behalf of the
Company.

         "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, unincorporated organization, other type
of business entity or government or any agency or political subdivision thereof.

         "Predecessor Debenture" of any particular Debenture means every
previous Debenture evidencing all or a portion of the same debt as that
evidenced by such particular Debenture; and for the purposes of this definition,
any Debenture authenticated and delivered under Section 306 in lieu of a
mutilated, lost, destroyed or stolen Debenture shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Debenture.

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<PAGE>

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

         "Redemption Premium" when used with respect to any Debenture to be
redeemed, means the premium to be paid with respect thereto pursuant to this
Indenture.

         "Redemption Price" when used with respect to any Debenture to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

         "Regular Record Date" for the interest payable on any Interest Payment
Date means the date specified in Section 307.

         "Responsible Officer" when used with respect to the Trustee means the
Chairman of the Board of Directors, the chairman or the vice chairman of the
executive committee of the Board of Directors, the President, any Vice Chairman,
the Chairman of the Trust Committee, any Executive Vice President, any Senior
Vice President, any Vice President, any Assistant Vice President, the Secretary,
any Assistant Secretary, the cashier, any trust officer, any assistant trust
officer, or any other officer or assistant officer of the Trustee customarily
performing functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of his knowledge of and familiarity with the particular
subject.

         "Senior Indebtedness" means the principal of, premium (if any) and
interest on indebtedness (other than the Debentures) of the Company for money
borrowed evidenced by bonds, notes, debentures or similar obligations, including
any guaranty by the Company of any indebtedness for money borrowed of any other
Person, whether any such indebtedness or guaranty is outstanding on the date of
this Indenture or is hereafter created, assumed or incurred, unless in the
instrument creating or evidencing such indebtedness it is expressly provided
that such indebtedness is not senior in right of payment to the Debentures.
Senior Indebtedness shall include expenses of collection if and to the extent
that such expenses are payable by the borrower under the instrument creating or
evidencing the indebtedness.

         "Special Record Date" for the payment of any Defaulted Interest (as
defined in Section 307) means a date fixed by the Trustee pursuant to Section
307.

         "Stated Maturity" when used with respect to any Debenture or any
installment of interest thereon means the date specified in such Debenture as
the fixed date on which the principal of such Debenture or such installment of
interest is due and payable.

         "Subsidiary" means any corporation at least a majority of whose
outstanding voting stock shall at the time be owned by the Company or by one or
more Subsidiaries or by the Company and one or more Subsidiaries. For this
purpose "voting stock" of any corporation means stock of any class or classes
(however designated), including any and all shares, interests, participations or
other equivalents (however designated) of corporate stock, having ordinary
voting power for

                                       7
<PAGE>

the election of a majority of the directors of such corporation, other than
stock having such power only by reason of the happening of a contingency.

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

         "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed, except as
provided in Section 1005.

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

         Section 102. Compliance Certificates and Opinions. Upon any application
or request by the Company to the Trustee to take any action under any provision
of this Indenture, the Company shall furnish to the Trustee an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA Section 314(a)(4)) shall include:

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

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

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

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

         Section 103. Form of Documents Delivered to Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such

                                       8
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Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

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

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

         Section 104.  Acts of Debentureholders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Debentureholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Debentureholders in person or by
agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are actually received by the Trustee, and, where it is hereby expressly
required, by the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"Act" of the Debentureholders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Section 701)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

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

         (c) The ownership of Debentures shall be proved by the Debenture
Register.

                                       9
<PAGE>

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

         (e) In connection with any direction pursuant to Section 612 or waiver
pursuant to Section 613, the Company may establish a record date in accordance
with TIA Section 316(c) for the purpose of determining the identity of Holders
entitled to vote or consent to such direction or waiver.

         Section 105. Notices, etc. to Trustee and Company. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Debentureholders or
other document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

         (i)      the Trustee by any Debentureholder or by the Company shall be
                  sufficient for every purpose hereunder, except as provided in
                  Section 603(3), if made, given, furnished or filed in writing
                  to or with the Trustee at its Corporate Trust Office,
                  Attention: Corporate Trust Department, or

         (ii)     the Company by the Trustee or by any Debentureholder shall be
                  sufficient for every purpose hereunder, except as provided in
                  Section 603(3), if in writing and mailed, first class postage
                  prepaid, to the Company addressed to it at the address of its
                  principal office specified in the first paragraph of this
                  instrument or at any other address previously furnished in
                  writing to the Trustee by the Company.

         Section 106. Notices to Debentureholders; Waiver. Where this Indenture
provides for notice to Debentureholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first class postage prepaid, to each Debentureholder affected by
such event, at his address as it appears on the Debenture Register not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. Any notice or communication shall also be so mailed to
any Person described in TIA Section 313(c), to the extent required by the TIA.
In any case where notice to Debentureholders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Debentureholder shall affect the sufficiency of such notice with
respect to other Debentureholders. Where this Indenture provides for notice in
any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Debentureholders shall be
filed with the Trustee, but such filing shall not be a condition precedent to
the validity of any action taken in reliance upon such waiver.

                  In case, by reason of the suspension of publication of any
Authorized Newspaper, or by reason of any other cause, it shall be impossible to
make publication of any notice in an Authorized Newspaper or Authorized
Newspapers as required by this Indenture, then such

                                       10
<PAGE>

method of publication or notification as shall be made with the approval of the
Trustee shall constitute a sufficient publication of such notice.

                  In case, by reason of the suspension of or irregularities in
regular mail service, it shall be impracticable to mail notice of any event to
Holders when said notice is required to be given pursuant to any provision of
this Indenture, then any manner of giving such notice as shall be satisfactory
to the Trustee shall be deemed to be a sufficient giving of such notice.

         Section 107. Incorporation of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

         Section 108. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         Section 109. Successors and Assigns. All covenants and agreements in
this Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

         Section 110. Separability Clause. In case any provision in this
Indenture or in the Debentures shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions thereof shall
not in any way be affected or impaired thereby.

         Section 111. Benefits of Indenture. Nothing in this Indenture or in the
Debentures, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the holders of Senior Indebtedness and
the Debentureholders, respectively, any benefit or any legal or equitable right,
remedy or claim under this Indenture.

         Section 112. Governing Law. This Indenture and the Debentures shall be
construed in accordance with and governed by the laws of the State of Indiana.

         Section 113. Legal Holidays. In any case where any Interest Payment
Date, Redemption Date or the Stated Maturity of any Debenture shall not be a
Business Day, then (notwithstanding any other provision of this Indenture)
payment of interest on, premium (if any) on or principal of such Debenture need
not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the Interest Payment Date or
Redemption Date or at the Stated Maturity, and no interest shall accrue for the
period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.

                                       11
<PAGE>

                                   ARTICLE TWO

                                 DEBENTURE FORMS

         Section 201. Forms Generally. The Commonly Registered Debentures and
Unrestricted Debentures and the Trustee's certificates of authentication thereof
shall be in substantially the respective forms thereof set forth in this
Article, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon, as may be required to comply with the rules of any
securities exchange, or as may, consistently herewith, be determined by the
officers executing such Commonly Registered Debentures or Unrestricted
Debentures, as the case may be, as evidenced by their execution thereof.

                  The definitive Commonly Registered Debentures and Unrestricted
Debentures shall be printed, lithographed or engraved or produced by any
combination of these methods on steel engraved borders or may be produced in any
other manner permitted by the rules of any securities exchange, all as
determined by the officers executing the same, as evidenced by their execution
thereof.

         Section 202. Form of Commonly Registered Debenture. The form of the
face of the definitive Commonly Registered Debenture shall be as follows:

                              ---------------------

              8% Redeemable Subordinated Debenture Due July 1, 2011

                  THIS DEBENTURE MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR
         OTHERWISE DISPOSED OF UNLESS THE CONDITIONS FOR TRANSFER, AS SET FORTH
         MORE FULLY HEREIN OR IN THE WITHIN MENTIONED INDENTURE, SHALL HAVE BEEN
         FULLY COMPLIED WITH. UNLESS THE COMMONLY REGISTERED EQUITY CONTRACT
         REFERRED TO BELOW SHALL HAVE BEEN DULY REGISTERED IN A NAME OTHER THAN
         THE NAME OF THE REGISTERED HOLDER OF THIS DEBENTURE, THE OBLIGATION TO
         PURCHASE COMMON STOCK UNDER SUCH COMMONLY REGISTERED EQUITY CONTRACT
         SHALL REMAIN THE OBLIGATION OF THE REGISTERED HOLDER OF THIS DEBENTURE,
         AND ON AND AFTER JANUARY 1, 2011. THE COMPANY SHALL BE ENTITLED TO
         OFFSET ITS OBLIGATION TO REPAY AT MATURITY THE PRINCIPAL HEREOF, IN
         WHOLE OR IN PART, AGAINST ANY UNPAID OBLIGATION OF THE REGISTERED
         HOLDER OF THIS DEBENTURE TO PURCHASE COMMON STOCK.

                                       12
<PAGE>

                  THE COMMONLY REGISTERED EQUITY CONTRACT REFERRED TO ABOVE IS
         COMMONLY REGISTERED EQUITY CONTRACT NO. CREC ______.

         $                                              CRD-
          ------------------                                -------------------

                  FIRST SHARES BANCORP, INC., an Indiana corporation
         (hereinafter called the "Company", which term includes any successor
         corporation under the Indenture hereinafter referred to), for value
         received, hereby promises to pay to)

         , or registered assigns, the principal sum of ________________ Dollars
         on July 1, 2011, and to pay interest thereon from the first date of
         issuance, or from the most recent Interest Payment Date to which
         interest has been paid or duly provided for, quarterly on the first day
         of January, April, July and October in each year, commencing July 1,
         2002, at the rate of 8% per annum, until the principal hereof is paid
         or duly provided for. The interest so payable, and punctually paid or
         duly provided for, on any Interest Payment Date will, as provided in
         said Indenture, be paid to the Person in whose name this Debenture (or
         one or more Predecessor Debentures, as defined in said Indenture) is
         registered at the close of business on the Regular Record Date for such
         interest which shall be the fifteenth day of the month (whether or not
         a Business Day) next preceding such Interest Payment Date. Any such
         interest not so punctually paid or duly provided for shall forthwith
         cease to be payable to the registered Holder on such Regular Record
         Date, and may be paid to the person in whose name this Debenture (or
         one or more Predecessor Debentures) is registered at the close of
         business on a Special Record Date for the payment of such Defaulted
         Interest to be fixed by the Trustee, notice whereof shall be given to
         Debentureholders not less than 10 days prior to such Special Record
         Date, or may be paid, at any time in any other lawful manner not
         inconsistent with the requirements of any securities exchange on which
         the Debentures may be listed, and upon such notice as may be required
         by such exchange, all as more fully provided in said Indenture. Payment
         of the principal of, premium (if any) and interest on this Debenture
         will be made at the office or agency of the Company maintained for that
         purpose in the City of Columbus, Ohio, in such coin or currency of the
         United States of America as at the time of payment is legal tender for
         payment of public and private debts; provided, however, that at the
         option of the Company, payment of interest may be made by check mailed
         to the address of the Person entitled thereto as such address shall
         appear in the Debenture Register.

                  The provisions of this Debenture are continued on the reverse
         side hereof and such continued provisions shall for all purposes have
         the same effect as if set forth at this place.

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

                                       13
<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Debenture to
         be duly executed.

         Dated:                   .
                ------------------

                                         FIRST SHARES BANCORP, INC.

         Attest:

                                         By:
         ------------------------             -----------------------------
         Secretary                            President

                  The form of the reverse of the definitive Commonly Registered
         Debenture shall be as follows:

                  This Debenture is one of a duly authorized issue of Debentures
         of the Company designated as its 8% Redeemable Subordinated Debentures
         Due July 1, 2011 (herein called the "Debentures"), limited in aggregate
         principal amount to $4,000,000, issued and to be issued under an
         Indenture dated as of _______, 2002 (herein called the "Indenture"),
         between the Company and The Huntington National Bank, as Trustee
         (herein called the "Trustee", which term includes any successor trustee
         under the Indenture), to which Indenture and all indentures
         supplemental thereto reference is hereby made for a statement of the
         respective rights, limitations of rights, duties and immunities
         thereunder of the Company, the Trustee, the holders of Senior
         Indebtedness and the Holders of the Debentures, and the terms upon
         which the Debentures are, and are to be, authenticated and delivered.

                  The indebtedness evidenced by the Debentures is, to the extent
         and in the manner provided in the Indenture, subordinated and subject
         in right of payment to the prior payment in full of all Senior
         Indebtedness of the Company. As provided in the Indenture, each holder
         of this Debenture, by his acceptance hereof, agrees to and shall be
         bound by all the provisions of the Indenture relating to such
         subordination and authorizes the Trustee to take such action on his
         behalf as may be necessary or appropriate to effectuate, as between the
         holders of the Debentures and the holders of Senior Indebtedness, the
         subordination of the indebtedness evidenced by this Debenture as
         provided in the Indenture and appoints the Trustee his attorney-in-fact
         for any and all such purposes.

                  The Debentures are issuable in fully registered form without
         coupons either as Commonly Registered Debentures or as Unrestricted
         Debentures, each in original denominations of $1,000 or any integral
         multiple of $1,000. As provided in the Indenture and subject to certain
         limitations herein and therein set forth, the Debentures are
         exchangeable for a like aggregate principal amount of Debentures of
         denominations of $1,000 and integral multiples of $1,000, as requested
         by the Holder surrendering the same.

                                       14
<PAGE>

                  The Company may, at its option redeem the Debentures, in whole
         but not in part, at any time prior to Maturity (a) if such redemption
         is made either (i) out of the proceeds of sale of common stock or
         perpetual preferred stock or other equity securities of the Company
         qualifying as regulatory capital pursuant to criteria established by
         the Federal Reserve Board or (ii) with the approval of the Federal
         Reserve Board, and (b) if at the time of mailing of the notice of
         redemption the Company is not in default in the payment of any Senior
         Indebtedness and at such time redemption of the Debentures would not
         result in a default in any covenant contained in any indenture or other
         instrument pursuant to which Senior Indebtedness is outstanding. Such
         redemption shall be at a Redemption Price which shall be the principal
         amount of each Debenture plus a Redemption Premium on such principal
         amount equal to the percentage of such principal amount then applicable
         under the following schedule:

                  If the Redemption Date is during the 12 months' period
         beginning July 1.

<Table>
<Caption>
                                                               Redemption
                  Year                                          Premium
                  ----                                         ----------
<S>                                                           <C>
                  2002..............................................8%
                  2003..............................................7%
                  2004..............................................6%
                  2005..............................................5%
                  2006..............................................4%
                  2007..............................................3%
                  2008..............................................2%
                  2009..............................................1%
</Table>

         provided, however, that if the Debentures are redeemed prior to July 1,
         2010, but after the occurrence of a Adverse Tax Determination (as
         defined in the Indenture) with respect to the deductibility from the
         Company's gross income for Federal income tax purposes of the interest
         paid on the Debentures, or an Adverse Capital Determination (as defined
         in the Indenture) with respect to the measurement or assessment of the
         Company's capital adequacy, the Redemption Premium shall be one percent
         (1%). The Debentures may be redeemed without any Redemption Premium at
         any time on or after July 1, 2010. Notice of redemption shall be given
         by mailing to holders of the Debentures a notice of such redemption by
         first class mail, postage prepaid, not less than thirty (30) nor more
         than sixty (60) days prior to the Redemption Date, to their last
         addresses as they shall appear upon the Debenture Register. Upon any
         redemption, interest accrued from the most recent Interest Payment Date
         to the Redemption Date will be paid along with the Redemption Price.

                  The Indenture permits, with certain exceptions as therein
         provided, the amendment thereof and the modification of the rights and
         obligations of the Company and the rights of the Holders of the
         Debentures under the Indenture at any time by the Company with the
         consent of the Holders of 66-2/3% in aggregate principal amount of

                                       15
<PAGE>

         the Outstanding Debentures. The Indenture also contains provisions
         permitting the Holders of specified percentages in aggregate principal
         amount of the Outstanding Debentures, on behalf of the Holders of all
         the Debentures, to waive compliance by the Company with certain
         provisions of the Indenture and certain past defaults under the
         Indenture and their consequences. Any such consent or waiver by the
         Holder of this Debenture shall be conclusive and binding upon such
         Holder and upon all future Holders of this Debenture and of any
         Debenture issued upon the transfer hereof or in exchange herefor or in
         lieu hereof whether or not notation of such consent or waiver is made
         upon this Debenture.

                  Subject to the right of offset referred to herein, no
         reference herein to the Indenture and no provision of this Debenture or
         of the Indenture shall alter or impair the obligation of the Company,
         which is absolute and unconditional, to pay the principal of, premium
         (if any) and interest on this Debenture at the times, places and rate,
         and in the coin or currency, herein prescribed.

                  The Commonly Registered Equity Contract referred to on the
         face hereof, inter alia, obligates the registered obligor thereunder to
         purchase on January 1, 2011 shares of Common Stock, par value $0.01 per
         share (the "Common Stock"), of the Company. The Holder of this
         Debenture is deemed to be the registered obligor under such Commonly
         Registered Equity Contract until such Commonly Registered Equity
         contract shall have been registered in a name other than the name of
         the Holder of this Debenture pursuant to the provisions of such
         Commonly Registered Equity Contract and of the Master Equity Contract
         (as defined in the Indenture).

                  This Debenture (or any portion of the principal amount hereof
         which is $1,000 or an integral multiple of $1,000) may be surrendered
         by the Holder hereof to the Equity Contract Agent (as defined in the
         Indenture) at any time or from time to time prior to Stated Maturity in
         full or partial satisfaction of the aggregate purchase obligation of
         such Holder set forth in the Commonly Registered Equity Contract
         referred to on the face hereof, at which time the Company will pay to
         the Holder the interest accrued on this Debenture from the most recent
         Interest Payment Date to which interest has been paid or duly provided
         for.

                  As provided in the Indenture and the Master Equity Contract,
         and subject to certain limitations therein and herein set forth, this
         Debenture is transferable on the Debenture Register of the Company,
         upon surrender of this Debenture for transfer at the office of the
         Equity Contract Agent in the City of Greenwood, Indiana, duly endorsed
         by, or accompanied by a written instrument of transfer in form
         satisfactory to the Company and the Debenture Registrar duly executed
         by, the Holder hereof or his attorney duly authorized in writing
         together with the instruments and notices hereinafter referred to.

                  In order to effect registration of transfer to a single
         transferee of this Debenture and the Commonly Registered Equity
         Contract referred to on the face hereof, this Debenture shall be
         surrendered to the Equity Contract Agent as hereinabove provided,

                                       16
<PAGE>

         together with the Commonly Registered Equity Contract referred to on
         the face hereof, with the form of Assignment II and the form of
         Acceptance on the reverse of such Commonly Registered Equity Contract
         (or separate written acceptance agreement satisfactory to the Company)
         duly completed and executed by the obligor thereunder and the
         transferee, respectively, in the manner contemplated thereby.
         Thereupon, a Commonly Registered Debenture in the same aggregate
         principal amount, registered in the name of the transferee, will be
         delivered to the Equity Contract Agent for delivery to the transferee,
         together with a Commonly Registered Equity Contract registered in the
         name of such transferee. Each Commonly Registered Debenture so issued
         shall refer on the face thereof (by letters and numbers) to such
         Commonly Registered Equity Contract which shall represent an aggregate
         purchase obligation for shares of Common Stock equal to the principal
         amount of such Commonly Registered Debenture.

                  In order to effect registration of transfer of this Debenture
         separately from the Commonly Registered Equity Contract referred to on
         the face hereof, this Debenture shall be surrendered to the Equity
         Contract Agent as hereinabove provided, together with (i) the Commonly
         Registered Equity Contract referred to on the face hereof, with a
         collateral agreement in the form set forth on the reverse of such
         Commonly Registered Equity Contract (or separate written collateral
         agreement satisfactory to the Company) duly completed and executed by
         the obligor thereunder in the manner contemplated thereby, and (ii) the
         collateral referred to in such collateral agreement which shall be of
         the kind and value required by Article VII of the Master Equity
         Contract. Thereupon, an Unrestricted Debenture in the same aggregate
         principal amount, registered in the name of the transferee, will be
         delivered to the Equity Contract Agent for delivery to the transferee,
         and such Commonly Registered Equity Contract shall be exchanged by the
         Equity Contract Agent in accordance with the provisions of the Master
         Equity Contract for a Collateralized Equity Contract which shall be
         delivered by the Equity Contract Agent to the transferor in accordance
         with the provisions of the Master Equity Contract. No transfer of this
         Debenture separately from such Commonly Registered Equity Contract may
         be registered after the Company shall have given notice of redemption
         of the Debentures as provided in Section 1202 of the Indenture.

                  In the manner and subject to the limitations provided in the
         Indenture and the Master Equity Contract, but without payment of any
         service charge, this Debenture may be surrendered to the Equity
         Contract Agent, together with the Commonly Registered Equity Contract
         referred to on the face hereof, to be exchanged for Commonly Registered
         Debentures and/or Unrestricted Debentures of authorized denominations
         at the office of the Equity Contract Agent in the City of Greenwood,
         Indiana; provided, however, that no exchange of this Debenture for an
         Unrestricted Debenture or Debentures may be made after the Company
         shall have given notice of redemption of the Debentures as provided in
         Section 1202 of the Indenture.

                  If an Event of Default involving the bankruptcy, insolvency or
         reorganization of the Company, as set forth in the Indenture, shall
         occur and be continuing, the principal of

                                       17
<PAGE>

         all the Debentures may be declared due and payable in the manner and
         with the effect provided in the Indenture.

                  On or after January 1, 2011, the Company shall be entitled to
         offset the obligation of the Company to pay the principal hereof
         (whether or not prior to the Maturity hereof), in whole or in part,
         against any unpaid obligation of the registered obligor under the
         Commonly Registered Equity Contract referred to on the face hereof to
         purchase the shares of Common Stock covered thereby, and if the Company
         shall effect such offset it shall deliver to the Equity Contract Agent
         certificates for such shares, which certificates shall be delivered to
         the Holder hereof upon presentation hereof to the Equity Contract
         Agent. If the Company shall have offset its obligation to pay all or a
         portion of the principal of this Debenture as provided above, then from
         and after the date of such offset interest on all or such portion of
         the principal of this Debenture shall cease to accrue.

                  Upon any cancellation of the Equity Contracts pursuant to
         Section 2.06 of the Master Equity Contract, this Debenture shall be
         deemed to be converted into an Unrestricted Debenture of like unpaid
         principal amount and registered in the name of the Holder hereof.

                  The Company will not be required to transfer or exchange this
         Debenture after January 1, 2011, except as provided in the Indenture.

                  No service charge will be made for any transfer or exchange of
         this Debenture but the Company may require payment of a sum sufficient
         to cover any tax or governmental charge payable in connection
         therewith.

                  Prior to due presentment for transfer, the Company, the
         Trustee and any agent of the Company or of the Trustee may treat the
         Person in whose name this Debenture is registered as the owner hereof
         for the purpose of receiving payment as herein provided and for all
         other purposes, including the determination of the Company's right to
         offset payment of the principal hereof on or after January 1, 2011,
         against any unpaid obligation of the registered obligor under the
         Commonly Registered Equity Contract referred to on the face hereof,
         whether or not this Debenture be overdue, and neither the Company, the
         Trustee nor any such agent shall be affected by notice to the contrary.

                  This Debenture shall be construed in accordance with and
         governed by the laws of the State of Indiana.

                  All terms used in this Debenture which are defined in the
         Indenture shall have the meanings assigned to them in the Indenture.

         Section 203. Form of Trustee's Certificate of Authentication of
Commonly Registered Debentures. The form of Trustee's certificate of
authentication of Commonly Registered Debentures shall be as follows:

                                       18
<PAGE>

                  This is one of the Commonly Registered Debentures referred to
         in the within-mentioned Indenture.

                       THE HUNTINGTON NATIONAL BANK, as Trustee

                  By:
                       ----------------------------
                             Authorized Officer

         Section 204. Form of Unrestricted Debenture. The form of the face of
the definitive Unrestricted Debenture shall be as follows:

                              ---------------------

              8% Redeemable Subordinated Debenture Due July 1, 2011

         $                                             No.
          ----------------------                          ----------------------

                  First Shares Bancorp, Inc. an Indiana corporation (hereinafter
         called the "Company," which term includes any successor corporation
         under the Indenture hereinafter referred to), for value received hereby
         promises to pay to _______________________, or registered assigns, the
         principal sum of ________________________ Dollars on July 1, 2011, and
         to pay interest thereon from the date of issuance, or from the most
         recent Interest Payment Date to which interest has been paid or duly
         provided for, quarterly on the first day of January, April, July and
         October in each year, commencing July 1, 2002 at the rate of 8% per
         annum, until the principal hereof is paid or duly provided for. The
         interest so payable, and punctually paid or duly provided for, on any
         Interest Payment Date will, as provided in said Indenture, be paid to
         the Person in whose name this Debenture (or one or more Predecessor
         Debentures, as defined in said Indenture) is registered at the close of
         business on the Regular Record Date for such interest which shall be
         the fifteenth day of the month (whether or not a Business Day) next
         preceding such Interest Payment Date. Any such interest not so
         punctually paid or duly provided for shall forthwith cease to be
         payable to the registered Holder on such Regular Record Date, and may
         be paid to the Person in whose name this Debenture (or one or more
         Predecessor Debentures) is registered at the close of business on a
         Special Record Date for the payment of such Defaulted Interest to be
         fixed by the Trustee, notice whereof shall be given to Debentureholders
         not less than 10 days prior to such Special Record Date, or may be
         paid, at any time in any other lawful manner not inconsistent with the
         requirements of any securities exchange on which the Debentures may be
         listed, and upon such notice as may be required by such exchange, all
         as more fully provided in said Indenture. Payment of the principal of,
         premium (if any) and interest on this Debenture will be made at the
         office or agency of the Company maintained for that purpose in the City
         of Columbus, Ohio, in such coin or currency of the United states of
         America as at the time of payment is legal tender for payment of public
         and private debts; provided, however, that at the option of the

                                       19
<PAGE>

         Company payment of interest may be made by check mailed to the address
         of the Person entitled thereto as such address shall appear in the
         Debenture Register.

                  The provisions of this Debenture are continued on the reverse
         side hereof and such continued provisions shall for all purposes have
         the same effect as if set forth at this place.

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

                  IN WITNESS WHEREOF, the Company has caused this Debenture to
         be duly executed.

         Dated:
                ----------------------
                                               FIRST SHARES BANCORP, INC.

         Attest:

                                               By:
         -----------------------------            -----------------------------
         Secretary                                President

                  The form of the reverse of the definitive Unrestricted
         Debenture shall be as follows:

                  This Debenture is one of a duly authorized issue of Debentures
         of the Company designated as its 8% Redeemable Subordinated Debentures
         Due July 1, 2011 (herein called the "Debentures"), limited in aggregate
         principal amount to $4,000,000 issued and to be issued under an
         Indenture dated as of ______, 2002 (herein called the "Indenture"),
         between the Company and The Huntington National Bank, as Trustee
         (herein called the "Trustee," which term includes any successor trustee
         under the Indenture), to which Indenture and all indentures
         supplemental thereto reference is hereby made for a statement of the
         respective rights, limitations of rights, duties and immunities
         thereunder of the Company, the Trustee, the holders of Senior
         Indebtedness and the Holders of the Debentures, and the terms upon
         which the Debentures are, and are to be, authenticated and delivered.

                  The indebtedness evidenced by the Debentures is, to the extent
         and in the manner provided in the Indenture, subordinated and subject
         in right of payment to the prior payment in full of all Senior
         Indebtedness of the Company. As provided in the Indenture, each holder
         of this Debenture, by his acceptance hereof, agrees to and shall be
         bound by

                                       20
<PAGE>

         all the provisions of the Indenture relating to such subordination and
         authorizes the Trustee to take such action on his behalf as may be
         necessary or appropriate to effectuate, as between the holders of the
         Debentures and the holders of Senior Indebtedness, the subordination of
         the indebtedness evidenced by this Debenture as provided in the
         Indenture and appoints the Trustee his attorney-in-fact for any and all
         such purposes.

                  The Debentures are issuable in fully registered form, without
         coupons, either as Commonly Registered Debentures or as Unrestricted
         Debentures, in original denominations of $1,000 or any integral
         multiple of $1,000. As provided in the Indenture and subject to certain
         limitations therein set forth, the Debentures are exchangeable for a
         like aggregate principal amount of Debentures in denominations of
         $1,000 and integral multiples of $1,000, as requested by the Holder
         surrendering the same.

                  The Company may, at its option, redeem the Debentures in whole
         but not in part, at any time prior to Maturity, (a) if such redemption
         is made either (i) out of the proceeds of sale of common stock or
         perpetual preferred stock or other equity securities of the Company
         qualifying as regulatory capital pursuant to criteria established by
         the Federal Reserve Board or (ii) with the approval of the Federal
         Reserve Board, and (b) if at the time of mailing of the notice of
         redemption the Company is not in default in the payment of any Senior
         Indebtedness and at such time redemption of the Debentures would not
         result in a default in any covenant contained in any indenture or other
         instrument pursuant to which Senior Indebtedness is outstanding. Such
         redemption shall be at a Redemption Price which shall be the principal
         amount of each Debenture plus a Redemption Premium on such principal
         amount equal to the percentage of such principal amount then applicable
         under the following schedule:

                  If the Redemption Date is during the 12 months' period
         beginning July 1,

<Table>
<Caption>
                                                                     Redemption
                  Year                                                 Premium
                  ----                                               ----------
<S>                                                                  <C>

                  2002.....................................................8%
                  2003.....................................................7%
                  2004.....................................................6%
                  2005.....................................................5%
                  2006.....................................................4%
                  2007.....................................................3%
                  2008.....................................................2%
                  2009.....................................................1%
</Table>

         provided, however, that if the Debentures are redeemed prior to July 1,
         2010, but after the occurrence of a Adverse Tax Determination (as
         defined in the Indenture) with respect to the deductibility from the
         Company's gross income for Federal income tax purposes of the interest
         paid on the Debentures, or an Adverse Capital Determination (as defined
         in the Indenture) with respect to the measurement or assessment of the
         Company's capital

                                       21
<PAGE>

         adequacy, the Redemption Premium shall be one percent (1%). The
         Debentures may be redeemed without any Redemption Premium at any time
         on or after July 1, 2010. Notice of redemption shall be given by
         mailing to holders of the Debentures a notice of such redemption by
         first class mail, postage prepaid, not less than thirty (30) nor more
         than sixty (60) days prior to the Redemption Date, to their last
         addresses as they shall appear upon the Debenture Register. Upon any
         redemption, interest accrued from the most recent Interest Payment Date
         to the Redemption Date will be paid along with the Redemption Price.

                  The Indenture permits, with certain exceptions as therein
         provided, the amendment thereof and the modification of the rights and
         obligations of the Company and the rights of the Holders of the
         Debentures under the Indenture at any time by the Company with the
         consent of the Holders of 66-2/3% in aggregate principal amount of the
         Outstanding Debentures. The Indenture also contains provisions
         permitting the Holders of specified percentages in aggregate principal
         amount of the Outstanding Debentures, on behalf of the Holders of all
         the Debentures, to waive compliance by the Company with certain
         provisions of the Indenture and certain past defaults under the
         Indenture and their consequences. Any such consent or waiver by the
         Holder of this Debenture shall be conclusive and binding upon such
         Holder and upon all future Holders of this Debenture and of any
         Debenture issued upon the transfer hereof or in exchange herefor or in
         lieu hereof whether or not notation of such consent or waiver is made
         upon this Debenture.

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

                  This Debenture (or any portion of the principal amount hereof
         which is $1,000 or an integral multiple of $1,000) may be surrendered
         by the Holder hereof to the Equity Contract Agent (as defined in the
         Indenture) at any time or from time to time prior to Stated Maturity in
         full or partial satisfaction of the purchase obligation of such Holder
         pursuant to a Collateralized Equity Contract referred to in the
         Indenture, at which time the Company will pay to the Holder the
         interest accrued on this Debenture from the most recent Interest
         Payment Date to which interest has been paid or duly provided for.

                  As provided in the Indenture and subject to certain
         limitations therein forth, this Debenture is transferable on the
         Debenture Register of the Company, upon surrender of this Debenture for
         transfer at the office or agency of the Company in the City of
         Greenwood, Indiana, duly endorsed by, or accompanied by a written
         instrument of transfer in form satisfactory to the Company and the
         Debenture Registrar duly executed by, the Holder hereof or his attorney
         duly authorized in writing, and thereupon a new Debenture or Debentures
         of authorized denominations and for the same aggregate principal
         amount, will be issued to the designated transferee or transferees.

                                       22
<PAGE>

                  In the manner and subject to the limitations provided in the
         Indenture and the Master Equity Contract (as defined in the Indenture),
         but without payment of any service charge, this Debenture may be
         surrendered to the Equity Contract Agent, together with a
         Collateralized Equity Contract, to be exchanged for an equal aggregate
         principal amount of Commonly Registered Debentures of authorized
         denominations at the office of the Equity Contract Agent in the City of
         Greenwood, Indiana. In the manner and subject to the limitations
         provided in the Indenture, but without payment of any service charge,
         this Debenture may be surrendered to the Company to be exchanged for an
         equal aggregate principal amount of Unrestricted Debentures of
         authorized denominations, at the office or agency of the Company for
         such exchange in the City of Greenwood, Indiana.

                  If an Event of Default involving the bankruptcy, insolvency or
         reorganization of the Company, as set forth in the Indenture, shall
         occur and be continuing, the principal of all the Debentures may be
         declared due and payable in the manner and with the effect provided in
         the Indenture.

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

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

                  This Debenture shall be construed in accordance with and
         governed by the laws of the State of Indiana.

                  All terms used in this Debenture which are defined in the
         Indenture shall have the meanings assigned to them in the Indenture.

         Section 205. Form of Trustee's Certificate of Authentication of
Unrestricted Debentures. The form of Trustee's certificate of authentication of
Unrestricted Debentures shall be as follows:

                  This is one of the Unrestricted Debentures referred to in the
         within-mentioned Indenture.

                                    THE HUNTINGTON NATIONAL BANK, as Trustee

                                    By:
                                         ---------------------------------------
                                                     Authorized Officer

                                       23
<PAGE>

                                  ARTICLE THREE

                                 THE DEBENTURES

         Section 301. Title and Terms. The aggregate principal amount of
Debentures which may be authenticated and delivered under this Indenture is
limited to $4,000,000, except for Debentures authenticated and delivered upon
transfer of, or in exchange for, or in lieu of other Debentures pursuant to
Section 304, 305, 306 or 1006, or pursuant to Article Thirteen or Fourteen.

                  The Debentures shall be known and designated as the 8%
Redeemable Subordinated Debentures Due July 1, 2011, of the Company and shall be
evidenced by either Commonly Registered Debentures or Unrestricted Debentures.
In each case their Stated Maturity shall be July 1, 2011 and they shall bear
interest, at the rate per annum set forth in the form of Commonly Registered
Debenture set forth in Section 202, and in the form of Unrestricted Debenture
set forth in Section 204, from the date of issuance, or from the most recent
Interest Payment Date to which interest has been paid thereon or duly provided
for, payable quarterly on the first day of January, April, July and October in
each year, commencing July 1, 2002, until the principal thereof is paid or duly
provided for.

                  The principal of, premium (if any) and interest on the
Debentures shall be payable at the office or agency of the Company in the City
of Columbus, Ohio; provided, however, that at the option of the Company payment
of interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Debenture Register.

         The Debentures shall be redeemable at the option of the Company as
provided in Article Twelve.

         Section 302. Denominations. The Debentures may be issued only in
denominations of $1,000 or any integral multiple of $1,000. Debentures issued
upon transfer of, or in exchange for, or in lieu of other Debentures may be
issued in denominations of $l,000 and integral multiples $1,000.

         Section 303. Execution, Authentication and Delivery and Dating. The
Debentures shall be executed on behalf of the Company by its President or any
Vice President under its corporate seal reproduced thereon attested by its
Secretary or Assistant Secretary. The signatures of any of these officers on the
Debentures may be manual or facsimile.

                  Debentures bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Debentures or
did not hold such offices at the date of such Debentures.

                                       24
<PAGE>

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Commonly Registered
Debentures and Unrestricted Debentures executed by the Company to the Trustee
for authentication together with a Company Order for the authentication and
delivery of such Debentures; and the Trustee shall authenticate and deliver such
Commonly Registered Debentures and Unrestricted Debentures as in this Indenture
provided and not otherwise.

                  Commonly Registered Debentures shall be delivered only to the
Equity Contract Agent. The Equity Contract Agent is authorized, prior to the
delivery of a Commonly Registered Debenture, to place thereon the letters and
numbers of the Commonly Registered Equity Contract representing an aggregate
purchase obligation for shares of Common Stock equal to the principal amount of
such Commonly Registered Debenture and registered in the name of the registered
owner of such Commonly Registered Debenture.

                  All Debentures shall be dated the date of their
authentication.

                  No Debenture shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on
such Debenture a certificate of authentication substantially in the form
provided for herein executed by the Trustee by manual signature, and such
certificate upon any Debenture shall be conclusive evidence, and the only
evidence, that such Debenture has been duly authenticated and delivered
hereunder.

         Section 304. Temporary Commonly Registered Debentures and Unrestricted
Debentures. Pending the preparation of definitive Commonly Registered Debentures
or Unrestricted Debentures, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Commonly Registered Debentures
or temporary Unrestricted Debentures, as the case may be, which are printed,
lithographed, typewritten, photocopied, mimeographed or otherwise produced, in
any denomination, substantially of the tenor of the definitive Commonly
Registered Debentures or of the definitive Unrestricted Debentures, as the case
may be, in lieu of which they are issued, with such appropriate insertions,
omissions, substitutions and other variations as the officers executing the same
may determine, as evidenced by their execution thereof.

                  If temporary Commonly Registered Debentures or temporary
Unrestricted Debentures, as the case may be, are issued, the Company will cause
definitive Commonly Registered Debentures or definitive Unrestricted Debentures,
as the case may be, to be prepared without unreasonable delay. After the
preparation of definitive Commonly Registered Debentures or definitive
Unrestricted Debentures, as the case may be, the temporary Commonly Registered
Debentures or temporary Unrestricted Debentures, as the case may be, shall be
exchangeable for definitive Commonly Registered Debentures or definitive
Unrestricted Debentures, as the case may be, upon surrender of the temporary
Commonly Registered Debentures or temporary Unrestricted Debentures, as the case
may be, at the office or agency of the Company designated pursuant to Section
1102, without charge to the Holder. Upon surrender for cancellation of any one
or more temporary Commonly Registered Debentures or

                                       25
<PAGE>

temporary Unrestricted Debentures, as the case may be, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Commonly Registered Debentures or definitive
Unrestricted Debentures, as the case may be, of authorized denominations. Until
so exchanged, the temporary Commonly Registered Debentures or temporary
Unrestricted Debentures, as the case may be, shall in all respects be entitled
to the same benefits under this Indenture as definitive Commonly Registered
Debentures or definitive Unrestricted Debentures, as the case may be.

         Section 305. Registration, Transfer and Exchange. The Company shall
cause to be kept at one of the offices or agencies to be maintained by the
Company in accordance with Section 1102 a register (herein sometimes referred to
as the "Debenture Register") in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of Debentures
and of transfers of Debentures. The Bank is hereby appointed "Debenture
Registrar" for the purpose of registering Debentures and transfers of Debentures
as herein provided. The Debenture Register shall be open to inspection by the
Trustee and by the Company.

                  Upon surrender for exchange or transfer of any Commonly
Registered Debenture or Unrestricted Debenture, as the case may be, at the
office or agency of the Company maintained for such purpose pursuant to Section
1102, or at the office of the Equity Contract Agent maintained pursuant to
Section 8.03(f) of the Master Equity Contract, if required by the provisions of
this Indenture, the Debentures or the Master Equity Contract, and compliance
with any applicable requirements set forth in this Indenture or the Master
Equity Contract, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the Holder thereof or the designated transferee or
transferees, as the case may be, one or more new Commonly Registered Debentures
or Unrestricted Debentures, as the case may be, of any authorized denominations
of a like aggregate principal amount.

                  At the option of the Holder, Commonly Registered Debentures
and Unrestricted Debentures, as the case may be, may be exchanged for other
Commonly Registered Debentures or Unrestricted Debentures, as the case may be,
of any authorized denominations, of a like aggregate principal amount, as
provided, respectively, in the form of Commonly Registered Debenture set forth
in Section 202 and the form of Unrestricted Debenture set forth in Section 204.

                  Commonly Registered Debentures may be exchanged for
Unrestricted Debentures as provided in the form of Commonly Registered
Debentures set forth in Section 202 and in Article Thirteen; except that no such
exchange may be made after the Company shall have given notice of redemption of
the Debentures as provided in Section 1202. Unrestricted Debentures may be
exchanged for Commonly Registered Debentures as provided in the form of
Unrestricted Debenture set forth in Section 204 and in Article Fourteen.

                  All Debentures issued upon any transfer or exchange of
Commonly Registered Debentures or Unrestricted Debentures pursuant to this
Section 305 or pursuant to Article Thirteen or Fourteen, as the case may be,
shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the

                                       26
<PAGE>

Commonly Registered Debentures or Unrestricted Debentures, as the case may be,
surrendered upon such transfer or exchange.

                  Every Debenture presented or surrendered for transfer or
exchange shall (if so required by the Company or the Trustee) be duly endorsed,
or be accompanied by a written instrument of transfer in form satisfactory to
the Company and the Debenture Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing. In addition, whenever a Commonly
Registered Debenture is presented or surrendered to the Equity Contract Agent
for transfer together with the Commonly Registered Equity Contract referred to
on the face thereof, or if a Commonly Registered Debenture is presented or
surrendered for transfer separately from the Commonly Registered Equity Contract
referred to on the face thereof, such transfer may be made only in accordance
with the provisions of the form of Commonly Registered Debenture set forth in
Section 202 or in Article Thirteen, if applicable.

                  No service charge shall be made for any transfer or exchange
of Debentures but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Debentures, other than exchanges pursuant to Section 304
or 306 or Article Thirteen or Fourteen not involving any transfer.

                  The Company shall not be required to issue, transfer or
exchange any Commonly Registered Debentures after January 1, 2011.

         Section 306. Mutilated, Destroyed, Lost or Stolen Debentures. If (i)
any mutilated Debenture is surrendered to the Trustee, or the Company and the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Debenture and (ii) there is delivered to the Company and the Trustee such
security or indemnity as may be required by them to save each of them and any
agent of either of them harmless, then, in the absence of notice to the Company
or the Trustee that such Debenture has been acquired by a bona fide purchaser,
the Company shall execute and upon its request, the Trustee shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Commonly Registered Debenture or Unrestricted Debenture, a new
Commonly Registered Debenture or Unrestricted Debenture, as the case may be, of
like tenor and principal amount, bearing a number not contemporaneously
outstanding. Such Commonly Registered Debenture shall be delivered to the Equity
Contract Agent.

                  In case any such mutilated, destroyed, lost or stolen
Debenture has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Debenture, pay such Debenture.

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

                                       27
<PAGE>

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

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

         Section 307. Payment of Interest; Interest Rights Preserved. Interest
on any Debenture which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that
Debenture (or one or more Predecessor Debentures) is registered at the close of
business on the Regular Record Date for such interest, which shall be the
fifteenth day of the month (whether or not a Business Day) next preceding such
Interest Payment Date.

                  Any interest on any Debenture which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the
registered Holder on the relevant Regular Record Date; and, except as
hereinafter provided, such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in Clause (i) or (ii) below:

                  (i)      The Company may elect to make payment of any
                           Defaulted Interest to the Persons in whose names the
                           Debentures (or their respective Predecessor
                           Debentures) are registered at the close of business
                           on a Special Record Date for the payment of such
                           Defaulted Interest, which shall be fixed in the
                           following manner. The Company shall notify the
                           Trustee in writing of the amount of Defaulted
                           Interest proposed to be paid on each Debenture and
                           the date of the proposed payment, and at the same
                           time the Company shall deposit with the Trustee an
                           amount of money equal to the aggregate amount
                           proposed to be paid in respect of such Defaulted
                           Interest or shall make arrangements satisfactory to
                           the Trustee for such deposit prior to the date of the
                           proposed payment, such money when deposited to be
                           held in trust for the benefit of the Persons entitled
                           to such Defaulted Interest as in this clause
                           provided. Thereupon the Trustee shall fix a Special
                           Record Date for the payment of such Defaulted
                           Interest which shall be not more than 15 and not less
                           than 10 days prior to the date of the proposed
                           payment and not less than 10 days after the receipt
                           by the Trustee of the notice of the proposed payment.
                           The Trustee shall promptly notify the Company of such
                           Special Record Date and, in the name and at the
                           expense of the Company, shall cause notice of the
                           Proposed Payment of such Defaulted Interest and the
                           Special Record Date therefor to be mailed,
                           first-class postage prepaid, to each Debentureholder
                           at his address as it appears in the Debenture
                           Register not less than 10 days prior to such

                                       28
<PAGE>

                           Special Record Date. The Trustee may, in its
                           discretion, in the name and at the expense of the
                           Company, cause a similar notice to be published at
                           least once in an Authorized Newspaper in the City of
                           Greenwood, Indiana, but such publication shall not be
                           a condition precedent to the establishment of such
                           Special Record Date. Notice of the Proposed Payment
                           of such Defaulted Interest and the Special Record
                           Date therefor having been mailed as aforesaid, such
                           Defaulted Interest shall be paid to the Persons in
                           whose names the Debentures (or their respective
                           Predecessor Debentures), are registered on such
                           Special Record Date and shall no longer be payable
                           pursuant to the following Clause (ii).

                  (ii)     The Company may make payment of any Defaulted
                           Interest on the Debentures in any other lawful manner
                           not inconsistent with the requirements of any
                           securities exchange on which the Debentures may be
                           listed, and upon such notice as may be required by
                           such exchange, if, after notice given by the Company
                           to the Trustee of the proposed payment pursuant to
                           this Clause, such payment shall be deemed practicable
                           by the Trustee.

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

                  In the case of any Debenture which is surrendered in payment
of an obligation under an Equity Contract after any Interest Payment Date and on
or prior to the next succeeding Regular Record Date, interest thereon shall
cease to accrue upon such surrender and interest theretofore accrued but unpaid
(whether or not punctually paid or duly provided for) shall be paid at the time
of such surrender to the Person in whose name such Debenture (or one or more
Predecessor Debentures) is registered at such time. In the case of any Debenture
which is surrendered in payment of an obligation under an Equity Contract after
any Regular Record Date and on or prior to the next succeeding Interest Payment
Date (other than any Debenture whose Maturity is prior to such Interest Payment
Date), interest whose Stated Maturity is on such Interest Payment Date shall be
payable on such Interest Payment Date notwithstanding such surrender and such
interest (whether or not punctually paid or duly provided for) shall be paid to
the Person in whose name that Debenture (or one or more Predecessor Debentures)
is registered at the close of business on such Regular Record Date.

         Section 308. Persons Deemed Owners. Prior to due presentment for
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name any Debenture is registered as the owner of
such Debenture for the purpose of receiving payment of principal of, premium (if
any) and (subject to Section 307) interest on such Debenture and for all other
purposes whatsoever whether or not such Debenture be overdue, and neither the
Company, the Trustee, nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

                                       29
<PAGE>

         Section 309. Cancellation. All Debentures surrendered for payment,
redemption, transfer or exchange shall, if surrendered to any Person other than
the Trustee, be delivered to the Trustee and shall be promptly cancelled by it.
The Company may at any time deliver to the Trustee for cancellation any
Debentures previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Debentures so delivered
shall be promptly cancelled by the Trustee. No Debentures shall be authenticated
in lieu of or in exchange for any Debentures cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled
Debentures held by the Trustee shall be disposed of as directed by a Company
Order. The Trustee, upon not less than 30 days' prior written notice to the
Company, may at its option destroy all cancelled Debentures held by it for over
six (6) months and shall provide a certificate evidencing same to the Company.

         Section 310. Authentication and Delivery of Original Issue. Forthwith
upon the execution and delivery of this Indenture, or from time to time
thereafter, and subject to and upon compliance with the provisions of this
Section 310, Debentures up to the aggregate principal amount of $4,000,000 may
be executed by the Company and delivered to the Trustee for authentication, and
shall thereupon be authenticated and delivered by the Trustee pursuant to
Company Order, without any further action by the Company. Each Commonly
Registered Debenture shall be originally issued as a unit with a Commonly
Registered Equity Contract representing an aggregate purchase obligation for
shares of Common Stock equal to the principal amount of such Commonly Registered
Debenture. Such Commonly Registered Equity Contract shall be referred to (by
letters and numbers) on the face of such Commonly Registered Debenture, and such
Commonly Registered Debenture shall be registered in the name of the obligor
under and registered owner of such Commonly Registered Equity Contract.

         Section 311. Issuance of Debentures upon Partial Payments under Equity
Contracts. Notwithstanding the provisions of Section 305, if any Debenture shall
be surrendered by the Holder thereof prior to January 1, 2011 in full or partial
satisfaction of the purchase obligation for shares of Common Stock of such
Holder under an Equity Contract, and if less than the full unpaid principal
amount of such Debenture is to be applied to the payment of the aggregate
purchase price of the shares of Common Stock purchased, then, upon the written
request of the Equity Contract Agent, a new Debenture or Debentures, of
authorized denominations in an aggregate principal amount equal to the principal
amount of the Debenture so surrendered less the amount of the principal thereof
applied to the aggregate purchase price for such shares of Common Stock, shall
be delivered to the Equity Contract Agent for delivery to such Holder by the
Equity Contract Agent in accordance with the Master Equity Contract; provided,
however, that in any case in which a Commonly Registered Debenture is
surrendered prior to January 1, 2011 in partial payment for shares of Common
Stock, any new Debenture so delivered shall be a Commonly Registered Debenture,
and shall be registered in the name of the Holder in whose name the Commonly
Registered Equity Contract representing the remaining aggregate purchase
obligation shall be registered; and provided further that, in any case in which
an Unrestricted Debenture is surrendered at any time in full or partial payment
for shares of Common Stock, any new Debenture or Debentures so delivered shall
be an Unrestricted Debenture or Unrestricted Debentures. In any case in which
less than the full unpaid principal amount of any Commonly

                                       30
<PAGE>

Registered Debenture is to be applied on or after January 1, 2011, whether upon
surrender or upon exercise of the Company's right of offset as provided in the
form of Commonly Registered Equity Contract referred to on the face thereof,
then upon the written request of the Equity Contract Agent, and upon surrender
of any such Commonly Registered Debenture in respect of which the Company shall
have exercised such right of offset, a new Unrestricted Debenture or
Unrestricted Debentures of authorized denominations in an aggregate principal
amount equal to the principal amount of the Commonly Registered Debenture so
surrendered less the amount of the principal thereof applied to the aggregate
purchase price for such shares of Common Stock, shall be delivered to the Equity
Contract Agent for delivery to such Holder by the Equity Contract Agent in
accordance with the provisions of the Master Equity Contract.

         Section 312. Computation of Interest. Interest on the Debentures shall
be computed on the basis of a year of twelve 30-day months. Interest on the
Debentures with respect to any period of less than a full calendar month shall
be calculated on the basis of a fraction whose numerator is the actual number of
days in such period multiplied by the interest rate per annum on the Debentures
and whose denominator is the actual number of days in such calendar month
multiplied by twelve (12).

                                  ARTICLE FOUR

                           SUBORDINATION OF DEBENTURES

         Section 401. Agreement to Subordinate. The Company, for itself, its
successors and assigns, covenants and agrees, and each holder of Debentures by
his acceptance thereof likewise covenants and agrees, that the payment of the
principal of, premium (if any) and interest on, each and all of the Debentures
is hereby expressly subordinated, to the extent and in the manner hereinafter
set forth, to the prior payment in full of all Senior Indebtedness.

         Section 402.  Payments Upon Distribution of Assets.

                  (a) Upon any distribution of assets of the Company upon any
dissolution, winding up, liquidation, reorganization, recapitalization or
readjustment of the Company or its securities (whether in bankruptcy, insolvency
or receivership proceedings or upon an assignment for the benefit of creditors
or any other arrangement or marshalling of the assets and liabilities of the
Company, or otherwise),

                           (1)      all Senior indebtedness shall first be paid
                                    in full, or have provision made for payment
                                    in full in cash, before the Debentureholders
                                    are entitled to receive any payment on
                                    account of the principal of, premium (if
                                    any) or interest on, the indebtedness
                                    evidenced by the Debentures, and

                           (2)      any payment or distribution of assets of the
                                    Company of any kind or character, whether in
                                    cash, property or securities, to which the
                                    Debentureholders or the Trustee would be
                                    entitled except for the

                                       31
<PAGE>

                                    provisions of this Article Four, shall be
                                    paid by the liquidating trustee or agent or
                                    other person making such payment or
                                    distribution, whether a trustee in
                                    bankruptcy, a receiver or liquidating
                                    trustee or other trustee or agent, directly
                                    to the holders of Senior Indebtedness or
                                    their representative or representatives or
                                    to the trustee or trustees under any
                                    indenture under which any instruments
                                    evidencing any of such Senior Indebtedness
                                    may have been issued, ratably according to
                                    the aggregate amounts remaining unpaid on
                                    account of the principal of, premium (if
                                    any) and interest on, the Senior
                                    Indebtedness held or represented by each, to
                                    the extent necessary to make payment in full
                                    of all Senior Indebtedness remaining unpaid,
                                    after giving effect to any concurrent
                                    payment or distribution, or provision
                                    therefor, to the holders of such Senior
                                    Indebtedness.

                  (b) No payments on account of principal of, premium (if any)
or interest on, the Debentures shall be made unless full payment of amounts then
due for principal, premium (if any), sinking funds, and interest on all Senior
Indebtedness has been made or duly provided for in cash. No payments on account
of principal of, premium (if any) or interest on, the Debentures shall be made
if, at the time of such payment or immediately after giving effect thereto,
there shall exist under any Senior Indebtedness or any agreement pursuant to
which any Senior Indebtedness is issued any default or any condition, event or
act, which, with notice or lapse of time or both, would constitute a default or
an event of default as defined in any such agreement.

                  (c) Upon the happening of any Event of Default and upon
declaration that the Debentures are due and payable as provided in Article Six,
then all principal of and premium (if any) and interest on all Senior
Indebtedness outstanding at the time of such Event of Default shall first be
paid or prepaid in full, or such payment shall have been duly provided for to
the satisfaction of the holders of Senior Indebtedness, before any payment on
account of principal, premium (if any) or interest is made upon the Debentures;
provided, however, that if such declaration is waived, rescinded, or annulled as
provided in said Article Six, then the requirement contained in this paragraph
(c) for payment or prepayment (or provision therefor) of the Senior Indebtedness
shall cease.

                  (d) In the event that, notwithstanding the foregoing, any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, shall be received by the Trustee or the
Debentureholders before all Senior Indebtedness is paid in full, or provision
made for its payment, such payment or distribution (subject to Sections 406 and
408) shall be immediately paid by the Trustee or such Holder, as the case may
be, over to the holders of Senior Indebtedness remaining unpaid or unprovided
for or their representative or representatives or to the trustee or trustees
under any indenture under which any instruments evidencing any of such Senior
Indebtedness may have been issued, as provided in the foregoing subparagraph (2)
of paragraph (a) of this Section 402, for application to the payment of such
Senior Indebtedness until all such Senior Indebtedness shall have been

                                       32
<PAGE>

paid in full, after giving effect to any concurrent payment or distribution, or
provision therefor, to the holders of such Senior Indebtedness.

                  Nothing in this Section 402 shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 707.

         Section 403. Subrogation. Subject to the payment in full of all Senior
Indebtedness, the Debentureholders shall be subrogated (equally and ratably with
the holders of all other subordinated indebtedness of the Company, which, by its
terms, is not superior in right of payment to the Debentures, and ranks on a
parity with the Debentures) to all rights of the holders of Senior Indebtedness
to receive payments or distributions of cash, property or securities of the
Company applicable to the Senior Indebtedness until the principal of, premium
(if any) and interest on the Debentures shall be paid in full, and for purposes
of such subrogation, no such payment or distributions to the holders of Senior
Indebtedness of cash, property or securities distributable to the holders of
Senior Indebtedness under the provisions hereof which otherwise would be payable
or distributable to the Debentureholders shall, as between the Company, its
creditors (other than the holders of Senior Indebtedness), and the
Debentureholders, be deemed to be a payment by the Company to or on account of
the Senior Indebtedness. It is understood that the provisions of this Article
Four are and are intended solely for the purpose of defining the relative rights
of the Debentureholders on the one hand, and the holders of the Senior
Indebtedness on the other hand.

         Section 404. Obligation of Company Unconditional. Nothing contained in
this Article Four or elsewhere in this Indenture or in the Debentures is
intended to or shall alter or impair, as between the Company, its creditors
(other than the holders of Senior Indebtedness), and the Debentureholders, the
obligation of the Company, which is absolute and unconditional, to pay to the
Debentureholders the principal of, premium (if any) and interest on the
Debentures as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Debentureholders and creditors of the Company, other than the holders of the
Senior Indebtedness, nor shall anything herein or in any Debentures prevent the
Trustee or any Debentureholder from exercising all remedies otherwise permitted
by applicable law upon the happening of any Event of Default under this
Indenture, subject to the rights, if any, under this Article Four of the holders
of Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy and subject to the limitations set
forth in Article 6. Upon any distribution of assets of the Company referred to
in this Article Four, the Trustee, subject as between the Trustee and the
Debentureholders to the provisions of Section 701, and the Debentureholders
shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which such dissolution, winding up, liquidation or
reorganization proceedings are pending or a certificate of the liquidating
trustee or agent or other Person making any distribution to the Trustee or to
the Debentureholders for the purpose of ascertaining the Persons entitled to
participate in such distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Four. In the event that the Trustee determines, in
good faith, that further evidence is required with respect to the right of any
Person as a holder of

                                       33
<PAGE>

Senior Indebtedness to participate in any payment or distribution pursuant to
this Article, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, as to the extent to which such Person is entitled to
participate in such payment or distribution, and as to other facts pertinent to
the rights of such Person under this Article, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness.

         Section 405. Rights of Holders of Senior Indebtedness Not Impaired. No
right of any present or future holder of any Senior Indebtedness of the Company
to enforce subordination, as herein provided, shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
non-compliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.

         Section 406. Obligation of Company to Pay Debentures Not Impaired.
Nothing contained in this Article Four or elsewhere in this Indenture, or in any
of the Debentures, shall, however, (a) affect the obligation of the Company to
make, or prevent the Company from making, at any time, except as provided in
Section 402, payments of principal of, premium (if any) or interest on the
Debentures, or (b) prevent the application by the Trustee or any Paying Agent of
any moneys deposited with it hereunder by the Company to the payment of or on
account of the principal of, premium (if any) or interest on the Debentures, if
the Trustee or such Paying Agent, as the case may be, did not have written
notice of any event prohibiting the payment of such principal, premium (if any)
or interest on or prior to the second business day preceding the date such
payment is due.

         Section 407. Trustee Authorized to Act for Debentureholder. Each Holder
of Debentures by his acceptance thereof authorizes and directs the Trustee on
his behalf to take such action as may be necessary or appropriate to effectuate
as between the Debentureholders and the holders of Senior Indebtedness the
subordination provided in this Article Four and appoints the Trustee his
attorney-in-fact for such purpose.

         Section 408. Trustee Not Charged with Knowledge of Senior Indebtedness.
Notwithstanding the provisions of this Article Four or any other provisions of
this Indenture, neither the Trustee nor any Paying Agent shall be charged with
knowledge of the existence of any Senior Indebtedness, or of any default in the
payment of the principal of, or premium, if any, or interest on, or the
existence of, or failure to comply with, any covenant of or condition in, any
Senior Indebtedness or of the maturity thereof by lapse of time, acceleration or
otherwise, unless and until the Trustee or such Paying Agent shall have received
written notice thereof from the Company or a holder, or a trustee or similar
representative of any class, of Senior Indebtedness; and, prior to the receipt
of any such written notice, the Trustee or any Paying Agent shall be entitled to
assume that no such default or other failure exists; provided, however, that,
unless the Trustee or any Paying Agent has received the notice provided for in
this Section 408 at least two

                                       34
<PAGE>

(2) business days prior to the date upon which by the terms of this Indenture
any money may become payable for any purpose (including, without limitation, the
payment of either the principal of, or the interest on, any Debenture), then,
anything herein contained to the contrary notwithstanding, the Trustee or any
Paying Agent shall have full power and authority to receive such money and to
apply the same to the purpose for which it was received, and shall not be
affected by any notice to the contrary which may be received by it on or after
such date.

         Section 409. Applicability of Article Four. Notwithstanding anything
herein contained to the contrary, all the provisions of this Indenture shall,
except as otherwise provided in Sections 107, 502, 706 and 707, be subject to
the provisions of this Article Four so far as the same may be applicable
thereto.

         Section 410. "Trustee" to Include Paying Agent. In case at any time any
Paying Agent other than the Trustee shall have been appointed by the Company and
be then acting hereunder, the term "Trustee" as used in this Article Four shall
in such case (unless the context shall otherwise require) be construed as
extending to and including such Paying Agent within its meaning as fully for all
intents and purposes as if such Paying Agent were named in this Article Four in
place of the Trustee.

                                  ARTICLE FIVE

                           SATISFACTION AND DISCHARGE

         Section 501. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect (except as to rights of transfer or exchange
of Debentures or to exchange Commonly Registered Debentures for Unrestricted
Debentures herein expressly provided for), and the Trustee, on demand of and at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

                  (1)      either

                           (A)      all Debentures theretofore authenticated and
                                    delivered (other than (i) Debentures which
                                    have been destroyed, lost or stolen and
                                    which have been replaced or paid as provided
                                    in Section 306 and (ii) Debentures for whose
                                    payment money has theretofore been deposited
                                    in trust or segregated and held in trust by
                                    the Company and thereafter repaid to the
                                    Company or discharged from such trust, as
                                    provided in Section 1103) have been
                                    delivered to the Trustee for cancellation;
                                    or

                           (B)      all such Debentures not theretofore
                                    delivered to the Trustee for cancellation
                                    (i) have become due and payable, or (ii)
                                    will become due and payable at their Stated
                                    Maturity within one year, and the Company,
                                    in the case of (i) or (ii) above, has
                                    deposited or caused to be deposited with the
                                    Trustee as trust funds in trust for the

                                       35
<PAGE>

                                    purpose an amount sufficient to pay and
                                    discharge the entire indebtedness on such
                                    Debentures not theretofore delivered to the
                                    Trustee for cancellation, for principal,
                                    premium (if any) and interest to the date of
                                    such deposit (in the case of Debentures
                                    which have become due and payable), or to
                                    the Stated Maturity, as the case may be;

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 707 and the obligations
of the Trustee to any Authenticating Agent under Section 714 shall survive.

         Section 502. Application of Trust Money. All money deposited with the
Trustee pursuant to Section 501 shall be held in trust and applied by it in
accordance with the provisions of the Debentures and of this Indenture to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent), as the Trustee may determine to the persons
entitled thereto of the principal, premium (if any) and interest for whose
payment such money has been deposited with the Trustee; but such money need not
be segregated from other funds except to the extent required by law.

                                   ARTICLE SIX

                                    REMEDIES

         Section 601. Events of Default. "Event of Default," wherever used
herein means any one of the following events (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or to be effected by
operation of law pursuant to any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body):

                  (1)      the Company or any of its Subsidiaries that is a
                           Major Subsidiary or any group of Subsidiaries that,
                           taken as a whole, would constitute a Major Subsidiary
                           pursuant to or within the meaning of Title 11, U.S.
                           Code or any similar Federal or state law for the
                           relief of debtors (herein referred to as "Bankruptcy
                           Law"):

                           (A)      commences a voluntary case,

                                       36
<PAGE>

                           (B)      consents to the entry of an order for relief
                                    against it in an involuntary case,

                           (C)      consents to the appointment of a custodian
                                    of it or for all or substantially all of its
                                    property,

                           (D)      makes a general assignment for the benefit
                                    of its creditors, or

                           (E)      generally is not paying its debts as they
                                    become due; or

                  (2)      a court of competent jurisdiction enters an order or
                           decree under any Bankruptcy Law that:

                           (A)      is for relief against the Company or any of
                                    its Subsidiaries that is a Major Subsidiary
                                    or any group of Subsidiaries that, taken as
                                    a whole, would constitute a Major Subsidiary
                                    in an involuntary case;

                           (B)      appoints a receiver, trustee, assignee,
                                    liquidator, custodian or other similar
                                    official under any Bankruptcy Law (i) of the
                                    Company or any of its Subsidiaries that is a
                                    Major Subsidiary or any group of
                                    Subsidiaries that, taken as a whole, would
                                    constitute a Major Subsidiary or (ii) for
                                    all or substantially all of the property of
                                    the Company or any of its Subsidiaries that
                                    is a Major Subsidiary or any group of
                                    Subsidiaries that, taken as a whole, would
                                    constitute a Major Subsidiary; or

                           (C)      orders the liquidation of the Company or any
                                    of its Subsidiaries that is a Major
                                    Subsidiary or any group of Subsidiaries
                                    that, taken as a whole, would constitute a
                                    Major Subsidiary;

                  and the order or decree remains unstayed and in effect for 60
                  consecutive days.

         Section 602. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default occurs and is continuing (but not in the event of a Default as
defined in Section 603 of this Indenture), then and in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Debentures may declare the principal of all the Debentures to be due
and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal shall
become immediately due and payable in cash. In the event that for any reason the
foregoing acceleration provision shall be unenforceable, the Company agrees to
pay immediately to the Holders, upon any such declaration of acceleration, in
cash, as liquidated damages for loss of a bargain and not as a penalty, the
principal amount of all the Debentures.

                  At any time after such a declaration of acceleration has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as

                                       37
<PAGE>

hereinafter in this Article provided, the Holders of a majority in principal
amount of the Outstanding Debentures, by written notice to Company and the
Trustee, may rescind and annul such declaration and its consequences if:

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

                           (A)      all overdue installments of interest on all
                                    Debentures,

                           (B)      the principal and premium (if any) of any
                                    Debentures which have become due otherwise
                                    than by declaration of acceleration and
                                    interest thereon at the rate or rates
                                    prescribed therefor in such Debentures,

                           (C)      to the extent that payment of such interest
                                    is lawful, interest upon overdue
                                    installments of interest at the rate or
                                    rates prescribed therefor in such
                                    Debentures, and

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

         and

                  (2)      all Events of Default have been cured or waived as
                           provided in Section 613.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

         Section 603. Collection of Indebtedness and Suits for Enforcement by
Trustee. "Default" wherever used herein means any one of the following events
(whatever the reason for such Default and whether it shall be voluntary or
involuntary or be effected by operation of law pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or
governmental body):

                  (1)      default in the payment of any installment of interest
                           on any Debenture when such interest becomes due and
                           payable and such default continues for a period of 30
                           days;

                  (2)      default in the payment of principal or premium (if
                           any) of any Debenture at the Maturity thereof; or

                  (3)      default in the performance of any covenant or
                           warranty of the Company in this Indenture (other than
                           a covenant or warranty a default in the performance
                           of which is elsewhere in this Section specifically
                           dealt with),

                                       38
<PAGE>

                           and such Default continues for a period of 60 days
                           after there has been given, by registered or
                           certified mail, to the Company by the Trustee or to
                           the Company and the Trustee by the Holders of at
                           least 10% in principal amount of the Outstanding
                           Debentures, a written notice specifying such Default
                           and requiring it to be remedied and stating that such
                           notice is a "Default Notice" hereunder.

The Company covenants that if any Event of Default or Default under clauses (1)
or (2) above shall occur, the Company will upon demand of the Trustee pay to it,
for the benefit of the Holders, the whole amount then due and payable on the
Debentures for principal, premium (if any) and interest, with interest upon the
overdue principal and premium (if any) at the original rate per annum prescribed
in the Debenture and, to the extent that payment of such interest shall be
legally enforceable, upon overdue installments of interest at the rate of eleven
percent (11%) per annum, compounded quarter-annually, and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

                  If the Company fails to pay any such amount forthwith upon
such demand, the Trustee, in its own name and as Trustee of an express trust,
may institute a judicial proceeding to compel the collection of the sums so due
and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company, or any other obligor upon the Debentures
and collect the monies adjudged or decreed to be payable in the manner provided
by law out of the property of the Company, or any other obligor upon the
Debentures wherever situated.

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

         Section 604. Trustee May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Debentures or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal of the Debentures shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Company for the payment of overdue
principal, premium (if any) or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise:

                  (1)      to file and prove a claim for the whole amount of
                           principal, premium (if any) and interest owing and
                           unpaid in respect of the Debentures and to file such
                           other papers or documents as may be necessary or
                           advisable in order to have the claims of the Trustee
                           (including any claim for the reasonable

                                       39
<PAGE>

                           compensation, expenses, disbursements and advances of
                           the Trustee, its agents and counsel) and of the
                           Debentureholders allowed in such judicial proceeding,
                           and

                  (2)      to collect and receive any moneys or other property
                           payable or deliverable on any such claims and to
                           distribute the same;

and any receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each
Debentureholder to make such payments to the Trustee, and in the event that the
Trustee shall consent to the making of such payments directly to the
Debentureholders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 707.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any
Debentureholder any plan of reorganization, arrangement, adjustment or
composition affecting the Debentures or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Debentureholder in
any such proceeding.

         Section 605. Trustee May Enforce Claims Without Possession of
Debentures. All rights of action and claims under this Indenture or the
Debentures may be prosecuted and enforced by the Trustee without the possession
of any of the Debentures or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Debentures in respect of which such
judgment has been recovered.

         Section 606. Application of Money Collected. Subject to Article Four,
any money collected by the Trustee pursuant to this Article shall be applied in
the following order, at the date or dates fixed by the Trustee and, in case of
the distribution of such money on account of principal, premium (if any) or
interest, upon presentation of the Debentures and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

                  FIRST:            To the payment of all amounts due the
                                    Trustee under Section 707; and

                  SECOND:           To the payment of the amounts then due and
                                    unpaid upon the Debentures for principal,
                                    premium (if any) and interest, in respect of
                                    which or for the benefit of which such money
                                    has been collected, ratably, without
                                    preference or priority of any kind,
                                    according to the amounts due and payable on
                                    such Debentures, for principal, premium (if
                                    any) and interest, respectively.

                                       40
<PAGE>

         Section 607. Limitation on Suits. No Holder of any Debenture shall have
any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless:

                  (1)      such Holder has previously given written notice to
                           the Trustee of a continuing Event of Default or
                           Default, specifying such Default and stating that
                           such notice is a "Notice of Default" hereunder;

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

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

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

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

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

         Section 608. Unconditional Right of Holders to Receive Principal,
Premium and Interest. Subject, in the case of any Commonly Registered Debenture,
to the Company's right of offset provided in the form of Commonly Registered
Debenture set forth in Section 202 and to the provisions of Section 606, the
Holder of any Debenture shall have the right, which is absolute and
unconditional, to receive payment of the principal (in accordance with the
respective terms of the Commonly Registered Debentures or of the Unrestricted
Debentures, as the case may be) of, premium (if any) and (subject to Section
307) interest on such Debenture at its Stated Maturity expressed in such
Debenture (or in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Holder.

         Section 609. Restoration of Rights and Remedies. If the Trustee or any
Debentureholder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined

                                       41
<PAGE>

adversely to the Trustee or to such Debentureholder, then and in every such case
the Company, the Trustee and the Debentureholders shall, subject to any
determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Trustee and the Debentureholders shall continue as though no such proceeding had
been instituted.

         Section 610. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Trustee or to the Debentureholders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law and not expressly in conflict with the provisions
of this Indenture, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.
The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

         Section 611. Delay or Omission Not Waiver. No delay or omission of the
Trustee or of any Holder of any Debenture to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Debentureholders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Debentureholders,
as the case may be.

         Section 612. Control by Debentureholders. The Holders of a majority in
principal amount of the Outstanding Debentures shall have the right to direct
the time, method and place of conducting any proceeding for any remedy available
to the Trustee or exercising any trust or power conferred on the Trustee,
provided that:

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

                  (2)      the Trustee may take any other action deemed proper
                           by the Trustee which is not inconsistent with such
                           direction, any rule of law or this Indenture.

         Section 613. Waiver of Past Defaults. The Holders of not less than a
majority in principal amount of the Outstanding Debentures may on behalf of the
Holders of all of the Debentures waive any past Default Situation hereunder and
its consequences, except a Default Situation:

                  (1)      in the payment of the principal of, premium (if any)
                           or interest on any Debenture, or

                  (2)      in respect of a covenant or provision hereof which
                           under Article Ten cannot be modified or amended
                           without the consent of the Holder of each Outstanding
                           Debenture affected.

                                       42
<PAGE>

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

         Section 614. Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Debenture by his acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken or omitted by it as Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; but the provisions of this Section shall not apply (i) to
any suit instituted by the Trustee, (ii) to any suit instituted by any
Debentureholder, or group of Debentureholders, holding in the aggregate more
than 10% of the principal amount of the Outstanding Debentures, or (iii) to any
suit instituted by any Holder for the enforcement of the payment of the
principal of, premium (if any) or interest on any Debenture on or after the
respective Stated Maturity expressed in such Debenture or, in the case of
redemption, on or after the Redemption Date.

                                  ARTICLE SEVEN

                                   THE TRUSTEE

         Section 701. Certain Duties and Responsibilities.

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

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

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

                                       43
<PAGE>

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

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

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

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

                           (3)      the Trustee shall not be liable with respect
                                    to any action taken or omitted to be taken
                                    by it in good faith in accordance with the
                                    direction of the Holders of a majority in
                                    principal amount of the Outstanding
                                    Debentures relating to the time, method and
                                    place of conducting any proceedings for any
                                    remedy available to the Trustee, or
                                    exercising any trust or power conferred upon
                                    the Trustee, under this Indenture; and

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

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

         Section 702. Notice of Defaults. Within 90 days after the occurrence of
any Default Situation hereunder, the Trustee shall transmit by mail to all
Debentureholders, as their names and addresses appear in the Debenture Register,
notice of such Default Situation hereunder known to the Trustee, unless such
Default Situation shall have been cured or waived; provided, however, that,
except in the case of a Default Situation involving failure to make payment of
the principal of, premium (if any) or interest on any Debenture, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Debentureholders; and
provided,

                                       44
<PAGE>

further, that in the case of any Default Situation of the character specified in
Section 603(3), no such notice to Debentureholders shall be given until at least
30 days after the occurrence thereof.

         Section 703. Certain Rights of Trustee. Except as otherwise provided in
Section 701:

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

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

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

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

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

                  (6)     the Trustee shall not be bound to make any
                          investigation into the facts or matters stated in any
                          resolution, certificate, statement, instrument,
                          opinion, report, notice, request, direction, consent,
                          order, bond, note, or other paper or document, but the
                          Trustee, in its discretion, may make such further
                          inquiry or investigation into such facts or matters as
                          it may see fit, and if the Trustee shall determine to
                          make such further inquiry or investigation, it shall
                          be entitled to examine the books, records and premises
                          of the Company, personally or by agent or attorney;
                          and

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

                                       45
<PAGE>

                           and the Trustee shall not be responsible for any
                           misconduct or negligence on the part of any agent or
                           attorney appointed with due care by it hereunder.

         Section 704. Not Responsible for Recitals or Issuance of Debentures.
The recitals contained herein, and in the Debentures, except the Trustee's
certificates of authentication thereof, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Debentures. The Trustee shall not be accountable for the use
or application by the Company of Debentures or the proceeds of the Debentures.

         Section 705. May Hold Debentures. The Trustee, any Authenticating
Agent, Paying Agent, Debenture Registrar or any other agent of the Company, in
its individual or any other capacity, may become the owner or pledgee of
Debentures and, subject to Sections 708 and 713, may otherwise deal with the
Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Debenture Registrar or such other agent.

         Section 706. Money Held in Trust. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

         Section 707. Compensation and Reimbursement. The Company agrees:

                  (1)      to pay to the Trustee from time to time reasonable
                           compensation for all services rendered by it
                           hereunder (which compensation shall not be limited
                           by any provision of law in regard to the
                           compensation of a trustee of an express trust);

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

                  (3)      to indemnify the Trustee for, and to hold it harmless
                           against, any loss, liability or expense incurred
                           without negligence or bad faith on its part, arising
                           out of or in connection with the acceptance or
                           administration of this trust, including the costs and
                           expenses of defending itself against any claim or
                           liability in connection with the exercise or
                           performance of any of its powers or duties hereunder.

                                       46
<PAGE>

                  As security for the performance of the obligations of the
Company under this Section, the Trustee shall have a lien prior to the
Debentures upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of, premium (if any) or
interest on particular Debentures.

                  The Trustee shall comply with the provisions of TIA Section
313(b)(2) to the extent applicable.

         Section 708. Disqualification; Conflicting Interests If the Trustee has
or shall acquire any conflicting interest, as defined in TIA Section 310(b), it
shall, within the period required by TIA Section 310(b) after ascertaining that
it has such conflicting interest, either eliminate such conflicting interest or
resign in the manner and with the effect specified in TIA Section 310(b). The
Trustee shall otherwise comply with the provisions of TIA Section 310(b).

         Section 709. Corporate Trustee Required; Eligibility. There shall at
all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States of America or of any state,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus (together with its parent) of at least $5,000,000, and
subject to supervision or examination by Federal or State authority. If such
corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. This Indenture shall always
have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2) and
(5). The Trustee is subject to TIA Section 310(b). If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

         Section 710. Resignation and Removal; Appointment of Successor.

                  (a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee under
Section 711.

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

                  (c) The Trustee may be removed at any time by act of the
Holders of a majority in principal amount of the Outstanding Debentures,
delivered to the Trustee and to the Company.

                  (d) If at any time:

                                       47
<PAGE>

                           (1)      the Trustee shall fail to comply with
                                    Section 708(a) after written request
                                    therefor by the Company or by any
                                    Debentureholder who has been a bona fide
                                    Holder of a Debenture for at least six
                                    months, or

                           (2)      the Trustee shall cease to be eligible under
                                    Section 709 and shall fail to resign after
                                    written request therefor by the Company or
                                    by any such Debentureholder, or

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

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee, or (ii) subject to Section 614, any Debentureholder who has been a bona
fide Holder of a Debenture for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

                  (e) If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy a successor Trustee shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Debentures delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed
by the Company or the Debentureholders and accepted appointment in the manner
hereinafter provided, any Debentureholder who has been a bona fide Holder of a
Debenture for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee.

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

         Section 711. Acceptance of Appointment by Successor. Every successor
Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the

                                       48
<PAGE>

retiring Trustee; but on request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee, and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder, subject nevertheless to its lien, if any, provided for in Section
707. Upon request of any such successor Trustee, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Trustee all such rights, powers and trusts.

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

         Section 712. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Debentures shall have been
authenticated, but not delivered by the Trustee then in office, any successor by
merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Debentures so authenticated with the same
effect as if such successor Trustee had itself authenticated such Debentures.

         Section 713. Preferential Collection of Claims Against Company. The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
be subject to TIA Section 311(a) to the extent indicated therein.

         Section 714. Appointment of Authenticating Agent. At any time when any
of the Debentures remain outstanding the Trustee may appoint an Authenticating
Agent or Agents which shall be authorized to act on behalf of the Trustee to
authenticate Debentures, and Debentures so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Debentures by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof
or the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $5,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section 714, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth

                                       49
<PAGE>

in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 714, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section 714.

                  The Trustee hereby appoints the Bank as its initial
Authenticating Agent hereunder. The Authenticating Agent may also serve as
Equity Contract Agent.

                  Any corporation into which an Authenticating Agent may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section 714, without the execution or filing of
any paper or any further act on the part of the Trustee or the Authenticating
Agent.

                  An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may at any
time cancel the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a cancellation, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 714, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all
Holders as their names and addresses appear in the Debenture Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent
herein. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section 714.

                  The Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section, and
the Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 707.

                  If an appointment is made pursuant to this Section 714, the
Debentures may have endorsed thereon, in lieu of the Trustee's certificate of
authentication, an alternate certificate of authentication in the following
form:

                  This is one of the Debentures described in the
within-mentioned Indenture.

                                    THE HUNTINGTON NATIONAL BANK,
                                    as Trustee

                                    By:     FIRST BANK,
                                            as Authenticating Agent

                                            By:
                                               ---------------------------------
                                                     Authorized Officer

                                       50
<PAGE>

                                  ARTICLE EIGHT

                           DEBENTUREHOLDERS' LISTS AND
                         REPORTS BY TRUSTEE AND COMPANY

         Section 801. Company to Furnish Trustee Names and Addresses of
Debentureholders. If the Trustee is not the Registrar, the Company shall furnish
to the Trustee at least seven Business Days before each Interest Payment Date
and at such other times as the Trustee may request in writing, a list in such
form and as of such date as the Trustee may reasonably require of the names and
addresses of the Holders of Notes, and the Company shall otherwise comply with
TIA Section 312(a).

         Section 802. Preservation of Information; Communications to
Debentureholders. The 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 all Holders and shall otherwise comply with TIA Section 312(a).
Holders may communicate pursuant to TIA Section 312(b) with other Holders with
respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Debenture Registrar and anyone else shall have the protection of
TIA Section 312(c).

         Section 803. Reports by Trustee.

                  (a) Within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, and for so long as Debentures remain
outstanding, the Trustee shall mail to the Holders of the Debentures a brief
report dated as of such reporting date that complies with TIA Section 313(a)
(but if no event described in TIA Section 313(a) has occurred within the twelve
months preceding the reporting date, no report need be transmitted). The Trustee
also shall comply with TIA Section 313(b)(2). The Trustee shall also transmit by
mail all reports as required by TIA Section 313(c).

                  (b) A copy of each report at the time of its mailing to the
Holders of Debentures shall be mailed to the Company. The Company shall promptly
notify the Trustee when the Debentures are listed on any stock exchange.

         Section 804. Reports by Company. The Company will:

                  (1)      At any time the Company is not required to file
                           information, documents or reports with the Commission
                           pursuant to either Section 13 or Section 15(d) of the
                           Securities Exchange Act of 1934, file with the
                           Trustee, in

                                       51
<PAGE>

                           accordance with rules and regulations prescribed from
                           time to time by the Commission, and at the times
                           required thereunder to be filed, such of the
                           supplementary and periodic information, documents and
                           reports which may be required pursuant to Section 13
                           of the Securities Exchange Act of 1934 in respect of
                           a security listed and registered on a national
                           securities exchange as may be prescribed from time to
                           time in such rules and regulations;

                  (2)      Transmit by mail to all Debentureholders, as their
                           names and addresses appear in the Debenture Register,
                           (A) within 30 days after the filing thereof with the
                           Trustee, copies of any information, documents and
                           reports required to be filed by the Company pursuant
                           to paragraph (1) and (B) copies of any reports or
                           other communications sent by the Company to holders
                           of its Common Stock, at the same time such reports or
                           other communications are sent to holders of Common
                           Stock;

                  (3)      Transmit promptly to any Debenture holder upon
                           request a copy of any filing which the Company is
                           required to file and has filed with the Commission
                           pursuant to Section 13 or Section 15(d) of the
                           Securities Exchange Act of 1934; and.

                  (4)      File with the Trustee the statement required by
                           Section 1106 when required thereby.

                                  ARTICLE NINE

                  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

         Section 901. Company May Consolidate, etc., Only on Certain Terms. The
Company shall not consolidate with or merge into any other corporation or convey
or transfer its properties and assets substantially as an entirety to any
Person, unless:

                  (1)        The corporation formed by such consolidation or
                             into which the Company is merged or the Person
                             which acquires by conveyance or transfer the
                             properties and assets of the Company substantially
                             as an entirety shall be a corporation organized and
                             existing under the laws of the United States of
                             America or any State or the District of Columbia,
                             and shall expressly assume, by an indenture
                             supplemental hereto, executed and delivered to the
                             Trustee, in form satisfactory to the Trustee, the
                             due and punctual payment of the principal of,
                             premium (if any) and interest on all the Debentures
                             and the performance of every covenant of this
                             Indenture, the Equity Contracts and the Master
                             Equity Contract on the part of the Company to be
                             performed or observed;

                                       52
<PAGE>

                  (2)      Immediately after giving effect to such transaction,
                           no Default or Event of Default, and no event which,
                           after notice or lapse of time, or both, would become
                           a Default or Event of Default, shall have happened
                           and be continuing; and

                  (3)      The company has delivered to the Trustee an Officers'
                           Certificate and an Opinion of Counsel each stating
                           that such consolidation, merger, conveyance or
                           transfer and such supplemental indenture comply with
                           this Article and that all conditions precedent herein
                           provided for relating to such transaction have been
                           complied with.

         Section 902. Successor Corporation Substituted. Upon any consolidation
or merger, or any conveyance or transfer of the properties and assets of the
Company substantially as an entirety in accordance with Section 901, the
successor corporation formed by such consolidation or into which the Company is
merged or to which such conveyance or transfer is made shall succeed to and be
substituted for, and may exercise every right and power of the Company under
this Indenture with the same effect as if such successor corporation had been
named as the Company herein; and in the event of any such conveyance or
transfer, the Company (which term shall for this purpose mean the Person named
as the "Company" in the first paragraph of this Indenture or any successor
corporation which shall theretofore have become such in the manner prescribed in
this Article) shall be discharged from all liability under this Indenture and in
respect of the Debentures and may be dissolved and liquidated.

                                   ARTICLE TEN

                             SUPPLEMENTAL INDENTURES

         Section 1001. Supplemental Indentures without Consent of
Debentureholders. Without the consent of the Holders of any Debentures, the
Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in
form satisfactory to the Trustee, for any of the following purposes:

                  (1)      To evidence the succession of another corporation to
                           the Company, and the assumption by any such successor
                           of the covenants of the Company herein and in the
                           Debentures contained;

                  (2)      To add to the covenants of the Company, for the
                           benefit of the Holders of the Debentures, or to
                           surrender any right or power herein conferred upon
                           the Company; or

                  (3)      To cure any ambiguity, to correct or supplement any
                           provision herein which may be inconsistent with any
                           other provision herein, or to make any other
                           provisions with respect to matters or questions
                           arising under this

                                       53
<PAGE>

                           Indenture which shall not be inconsistent with the
                           provisions of this Indenture, provided such action
                           shall not adversely affect the interests of the
                           Holders of the Debentures.

         Section 1002. Supplemental Indentures with Consent of Holders. With the
consent of the Holders of not less than 66-2/3% in principal amount of the
Outstanding Debentures, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of the Debentures under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Debenture affected thereby:

                  (1)      Change the Stated Maturity of the principal of, or
                           any installment of interest on, any Debenture or
                           reduce the principal amount thereof or the interest
                           thereon or any premium payable on the redemption
                           thereof, or change any place of payment where, or the
                           coin or currency in which any Debenture, premium (if
                           any) thereon or the interest thereon is payable or
                           impair the right to institute suit for the
                           enforcement of any such payment on or after the
                           Stated Maturity thereof (or, in the case of
                           redemption, on or after the Redemption Date) or
                           modify the provisions of the Indenture with respect
                           to the subordination of the Debentures in a manner
                           adverse to the Holders; or

                  (2)      Reduce the percentage in principal amount of the
                           Outstanding Debentures, the consent of whose Holders
                           is required for any such supplemental indenture, or
                           the consent of whose Holders is required for any
                           waiver (of compliance with certain provisions of this
                           Indenture or certain defaults hereunder or their
                           consequences) provided for in this Indenture; or

                  (3)      Modify any of the provisions of this Section or
                           Section 613, except to increase any such percentage
                           or to provide that certain other provisions of this
                           Indenture cannot be modified or waived without the
                           consent of the Holder of each Debenture affected
                           thereby; or

                  (4)      Adversely affect the right to exchange Commonly
                           Registered Debentures for Unrestricted Debentures as
                           provided in the Commonly Registered Debentures or in
                           Article Thirteen; or

                  (5)      Adversely affect the right to exchange Unrestricted
                           Debentures for Commonly Registered Debentures as
                           provided in the Unrestricted Debentures or in Article
                           Fourteen.

                                       54
<PAGE>

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

         Section 1003. Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trusts created by this
Indenture the Trustee shall be entitled to receive, and (subject to Section 701)
shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

         Section 1004. Effect of Supplemental Indentures. Upon the execution of
any supplemental indenture under this Article, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Debentures theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

         Section 1005. Reference in Debentures to Supplemental Indentures.
Debentures authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Debentures
so modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Debentures.

                                 ARTICLE ELEVEN

                                    COVENANTS

         Section 1101. Payment of Principal, Premium and Interest. The Company
will duly and punctually pay or cause to be paid the principal of, premium (if
any) and interest on the Debentures in accordance with the terms of the
Debentures and of this Indenture. Notwithstanding the foregoing provisions of
this Section 1101, if on or prior to the Stated Maturity expressed in the
Commonly Registered Debentures the Company shall have elected to exercise its
right to offset against its obligation to pay the principal amount of any one or
more Commonly Registered Debentures as provided in the form of Commonly
Registered Debenture set forth in Section 202, the provisions of this Section
1101 shall not apply with respect to any such amount so offset.

         Section 1102. Maintenance of Office or Agency. The Company will
maintain an office or agency in the City of Columbus, Ohio, where Debentures may
be presented or surrendered for

                                       55
<PAGE>

payment and an office or agency in Greenwood, Indiana, where Debentures may be
surrendered for transfer or exchange, where Commonly Registered Debentures may
be surrendered in exchange for Unrestricted Debentures and where notices and
demands to or upon the Company in respect of the Debentures and this Indenture
may be served. Until otherwise designated by the Company in a written notice to
the Trustee, such agency for the purpose of presentation or surrender for
payment shall be the corporate trust office of the Trustee, in its capacity as
Paying Agent, and such agency for all other purposes shall be the principal
office of the Bank in the City of Greenwood, Indiana, at which, at any
particular time, its corporate trust business is administered. The Company will
give prompt written notice to the Trustee of any change in the location of such
office or agency. If at any time the Company shall fail to maintain such office
or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee its agent to receive all such presentations, surrenders, notices and
demands.

                  In addition to such office or agency, the Company may from
time to time designate one or more other offices or agencies where Debentures
may be presented for any or all of such purposes specified above in this Section
and may constitute and appoint one or more Paying Agents for the payment of such
Debentures, in one or more other cities, and may from time to time rescind such
designations and appointments; provided, however, that if at any time the
Trustee is not appointed as a Paying Agent, the Company shall maintain an office
and agency in the City of Greenwood, Indiana for such purposes.

         Section 1103. Money for Debenture Payments to be Held in Trust. If the
Company shall at any time act as its own Paying Agent, it will, on or before
each due date of the principal of, premium (if any) or interest on any of the
Debentures, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal, premium (if any) or interest so
becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and will promptly notify the Trustee of its action or
failure so to act.

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

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

                  (1)      Hold all sums held by it for the payment of the
                           principal of premium (if any) or interest on the
                           Debentures in trust for the benefit of the Persons
                           entitled thereto until such sums shall be paid to
                           such Persons or otherwise disposed of as herein
                           provided;

                                       56
<PAGE>

                  (2)      Give the Trustee prompt written notice of any default
                           by the Company (or any other obligor upon the
                           Debentures) in the making of any payment of
                           principal, premium (if any) or interest; and

                  (3)      At any time during the continuance of any such
                           default upon the written request of the Trustee,
                           forthwith pay to the Trustee all sums so held in
                           trust by such Paying Agent.

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

                  Any money deposited with the Trustee or any Paying Agent or
then held by the Company in trust for the payment of the principal of, premium
(if any) or interest on any Debenture and remaining unclaimed for three years
after such principal, premium (if any) or interest has become due and payable,
shall be paid to the Company on Company request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Debenture
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in an Authorized Newspaper in
the City of Indianapolis, Indiana, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

                  The provisions of this Section 1103 are subject to the
provisions of the last sentence of Section 1101.

         Section 1104. Corporate Existence. So long as any of the Debentures
shall be Outstanding, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and will comply with all laws applicable to it; provided, however, that nothing
in this Section shall prevent (i) any consolidation, merger or conveyance or
transfer of the properties of the Company substantially as an entirety as
permitted by Article Nine, or (ii) the dissolution and liquidation of the
Company after any such conveyance or transfer. The Company may omit in any
particular instance to comply with any covenant or condition set forth in this
Section if before the time for such compliance the Holders of at least 66-2/3%
in principal amount of the Debentures at the time Outstanding, shall, by act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such

                                       57
<PAGE>

covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the company and the duties of
the Trustee in respect of any such covenant or condition shall remain in full
force and effect.

         Section 1105. Restrictions on Disposition of Capital Stock of Major
Subsidiaries. So long as any of the Debentures shall be Outstanding, the Company
will not create any security interest in more than 20% of the shares of Capital
Stock of any Major Subsidiary, or permit more than 20% of such shares (exclusive
of Directors' qualifying shares) to be held directly or indirectly by any Person
other than the Company or a corporation which is wholly-owned (except for
Directors' qualifying shares) by the Company.

         Section 1106. Statement as to Compliance. The Company will deliver to
the Trustee, within 120 days after the end of each fiscal year, a written
statement signed by the President, or any Executive, Senior or other Vice
President and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of the Company, stating, as to each signer thereof, that:

                  (1)      A review of the activities of the Company during such
                           year and of performance under this Indenture has been
                           made under his supervision; and

                  (2)      To the best of his knowledge, based on such review,
                           the Company has fulfilled all its obligations under
                           this Indenture throughout such year, or, if there has
                           been a default in the fulfillment of any such
                           obligation, specifying each such default known to him
                           and the nature and status thereof.

                                 ARTICLE TWELVE

                            REDEMPTION OF DEBENTURES

         Section 1201. Conditions; Redemption Price. The Company may, at its
option, redeem the Debentures, in whole but not in part, at any time prior to
Maturity (a) if such redemption is made either (i) out of the proceeds of sale
of common stock or perpetual preferred stock or other equity securities of the
Company qualifying as regulatory capital pursuant to criteria established by the
Federal Reserve Board or (ii) with the approval of the Federal Reserve Board;
and (b) if at the time of mailing of the notice of redemption the Company is not
in default in the payment of any Senior Indebtedness and at such time redemption
of the Debentures would not result in a default in any covenant contained in any
indenture or other instrument pursuant to which Senior Indebtedness is
outstanding. Such redemption shall be at a Redemption Price which shall be the
principal amount of each Debenture plus a Redemption Premium on such principal
amount equal to the percentage of such principal amount then applicable under
the following schedule:

                  If the Redemption Date is during the 12 months' period
beginning July 1,

                                       58
<PAGE>

<Table>
<Caption>
                                                                 Redemption
                  Year                                             Premium
                  ----                                           ----------
<S>                                                             <C>

                  2002................................................8%
                  2003................................................7%
                  2004................................................6%
                  2005................................................5%
                  2006................................................4%
                  2007................................................3%
                  2008................................................2%
                  2009................................................1%
</Table>

; provided, however, that if the Debentures are redeemed prior to July 1, 2010,
but after the occurrence of a Adverse Tax Determination, or an Adverse Capital
Determination, the Redemption Premium shall be one percent (1%). The Debentures
may be redeemed without any Redemption Premium at any time on or after July 1,
2010. Upon any redemption, interest accrued from the most recent Interest
Payment Date to the Redemption Date will be paid along with the Redemption
Price.

         Section 1202. Notice of Redemption. In case the Company shall desire to
exercise its right to redeem the Debentures pursuant to Section 1201, notice of
such redemption shall be given to the holders of the Debentures to be redeemed
as hereinafter in this Section 1202 provided. Such notice shall be given by the
Company or, at the Company's direction, by the Trustee in the name and at the
expense of the Company.

                  Notice of redemption shall be given by mailing to holders of
the Debentures a notice of such redemption by first-class mail, postage prepaid,
not less than thirty (30) nor more than sixty (60) days prior to the Redemption
Date, to their last addresses as they shall appear upon the Debenture Register.
Any notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given, whether or not the Holder receives the notice.
In any case, failure duly to give notice by mail, or any defect in the notice,
to the Holder of any Debenture shall not affect the validity of the proceedings
for the redemption of any other Debenture.

                  Each such notice shall specify the Redemption Date, the place
of redemption and the Redemption Price at which the Debentures are to be
redeemed, and shall state that the Debentures shall become due and payable on
the Redemption Date, that payment will be made upon presentation and surrender
of the Debentures, that from and after the Redemption Date interest thereon will
cease to accrue and that interest accrued to the Redemption Date will be paid as
specified in such notice.

                  At least one business day before the Redemption Date specified
in the notice of redemption given as provided in this Section 1202, the Company
will deposit with the Trustee or with the office or agency to be maintained by
the Company as provided in Section 1102 an

                                       59
<PAGE>

amount of money sufficient to redeem on such date all the Debentures at the
Redemption Price, together (except if the Redemption Date is an Interest Payment
Date) with accrued interest to the Redemption Date.

                  The Company covenants and agrees, in connection with any
redemption of the Debentures pursuant to this Article, to provide the Trustee
with such lists of holders of Debentures and such other information and
materials as, and at such times as, the Trustee may reasonably request.

         Section 1203. Payment of Debentures on Redemption. If notice of
redemption shall have been given as provided in Section 1201, the Debentures
shall become due and payable on the Redemption Date and at the place stated in
such notice at the Redemption Price, together with accrued and unpaid interest
to the Redemption Date, and on and after such Redemption Date, provided that the
Company shall have deposited with the Trustee or with the office or agency to be
maintained by the Company as provided in Section 1102 cash sufficient for the
redemption thereof which shall then be held in trust, interest on the Debentures
shall cease to accrue. On presentation and surrender of the Debentures at the
place of payment specified in such notice, the Debentures shall be paid and
redeemed at the Redemption Price, together with accrued and unpaid interest
thereon to the Redemption Date. Installments of interest whose Stated Maturity
is on or prior to the Redemption Date shall continue to be payable to the
Holders of the Debentures on the relevant Regular Record Dates according to
their terms and the provisions of Section 307 of this Indenture. If any
Debenture called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and premium (if any) shall, until paid, bear interest
from the Redemption Date at the rate borne by the Debenture.

                                ARTICLE THIRTEEN

                   EXCHANGE OF COMMONLY REGISTERED DEBENTURES
                           FOR UNRESTRICTED DEBENTURES

         Section 1301. Exchange Privilege.

                  (a) Subject to the provisions of Section 305, and subject to
and upon compliance with the provisions of the form of the Commonly Registered
Debenture set forth in Section 202 and of this Article Thirteen, the Holder of
any Commonly Registered Debenture shall have the right, at his option, at any
time prior to January 1, 2011, to exchange the principal amount of any such
Commonly Registered Debenture, or any portion of such principal amount which is
$1,000 or an integral multiple thereof, for an Unrestricted Debenture or
Unrestricted Debentures in an aggregate principal amount equal to the principal
amount or portion thereof of the Commonly Registered Debenture to be so
exchanged, by surrender of the Commonly Registered Debenture to be so exchanged
in whole or in part (such surrender to be made in the manner provided in Section
1302 and in compliance with the provisions of the Commonly Registered Equity
Contract referred to on the face of such Commonly Registered Debenture and of
the Master Equity Contract).

                                       60
<PAGE>

                  (b) Such Commonly Registered Debenture so surrendered shall be
accompanied by a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with the issuance of any Unrestricted
Debenture in a name other than that of such Holder.

                  (c) Notwithstanding the foregoing, in any case in which the
purchase price under a Commonly Registered Equity Contract shall have been paid
on or after January 1, 2011, in whole or in part, in any manner other than by
surrender of the Commonly Registered Debenture which refers to such Commonly
Registered Equity Contract on the face thereof or by exercise of the Company's
right of offset as provided in the form of Commonly Registered Debenture set
forth in Section 202, the Holder of such Commonly Registered Debenture shall
thereafter be entitled to exchange such Commonly Registered Debenture for an
Unrestricted Debenture or Unrestricted Debentures of authorized denominations in
an aggregate principal amount equal to the amount so paid.

                  (d) In any case in which the aggregate purchase obligation
under a Commonly Registered Equity Contract shall have been paid prior to
January 1, 2011, in whole or in part, in any manner other than by surrender of
the Commonly Registered Debenture which refers to such Commonly Registered
Equity Contract on the face thereof, the Holder of such Commonly Registered
Debenture shall thereafter be entitled to exchange such Commonly Registered
Debenture for an Unrestricted Debenture or Unrestricted Debentures in an
aggregate principal amount equal to the amount so paid, and, if such aggregate
purchase obligation shall not be paid in full, for a Commonly Registered
Debenture in a principal amount equal to the remaining aggregate purchase
obligation under such Commonly Registered Equity Contract. No exchange of a
Commonly Registered Debenture for an Unrestricted Debenture or Debentures may be
made after the Company shall have given notice of redemption of the Debentures
as provided in Section 1202.

         Section 1302. Manner of Exercise of Exchange Privilege. In order to
exchange any Commonly Registered Debenture, in whole or in part, for an
Unrestricted Debenture or Unrestricted Debentures, the Holder of such Commonly
Registered Debenture shall surrender such Commonly Registered Debenture at the
office of the Equity Contract Agent in the City of Greenwood, Indiana, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Debenture Registrar duly executed by the
Holder thereof or his attorney duly authorized in writing, and any instruments
or notices as shall be required pursuant to the provisions of this Indenture,
together with the Commonly Registered Equity Contract referred to on the face of
such Commonly Registered Debenture, and except in the case of an exchange
pursuant to Section 1301(c), an executed collateral agreement in the form set
forth on the reverse of such Commonly Registered Equity Contract (or separate
written collateral agreement satisfactory to the Company), and the Collateral
(as defined in the Master Equity Contract) referred to in such collateral
agreement which shall be of the kind and value required by Article VII of the
Master Equity Contract. As promptly as practicable after surrender of such
Commonly Registered Debenture, and any such written instrument of transfer, by
the Equity Contract Agent and upon compliance with the provisions of such
Commonly Registered Debenture, with the foregoing provisions of this Article
Thirteen and with the provisions of the Master Equity Contract, the Company
shall cause to be delivered to the Equity

                                       61
<PAGE>

Contract Agent, (i) an Unrestricted Debenture or Unrestricted Debentures in the
aggregate principal amount issuable upon the exchange of such Commonly
Registered Debenture or portion thereof in accordance with the provisions of
this Article Thirteen and (ii) a new Commonly Registered Debenture or Commonly
Registered Debentures in authorized denominations in an aggregate principal
amount equal to the unexchanged portion of the principal amount of the Commonly
Registered Debenture surrendered for exchange. Subject to the provisions of this
Section and of Sections 305 and 1301, each exchange shall be deemed to have been
effected on the date on which such Commonly Registered Debenture shall have been
surrendered and all applicable provisions of Section 305, of this Article
Thirteen and of the Master Equity Contract shall have been complied with, as
aforesaid, and the Person or Persons in whose name or names any Unrestricted
Debenture or Unrestricted Debentures shall be issued upon such exchange shall be
deemed to have become on said date the Holder or Holders thereof. No adjustment
shall be made for interest accrued on any Commonly Registered Debenture or
portion thereof that shall be exchanged or on any Unrestricted Debenture or
Unrestricted Debentures that shall be issuable upon the exchange of such
Commonly Registered Debenture or portion thereof.

         Section 1303. Conversion of Commonly Registered Debentures upon
Cancellation of Equity Contracts. Notwithstanding the provisions of Section 305
and the foregoing provisions of this Article Thirteen, upon any cancellation of
the Equity Contracts pursuant to Section 2.06 of the Master Equity Contract,
each Commonly Registered Debenture shall be deemed to be converted into an
Unrestricted Debenture of like unpaid principal amount and registered in the
name of the Holder of such Commonly Registered Debenture.

                                ARTICLE FOURTEEN

                     EXCHANGE OF UNRESTRICTED DEBENTURES FOR
                         COMMONLY REGISTERED DEBENTURES

         Section 1401. Exchange Privilege. Subject to the provisions of Section
305, and subject to and upon compliance with the provisions of the form of the
Unrestricted Debenture set forth in Section 204 and of this Article Fourteen,
the Holder of any Unrestricted Debenture shall have the right, at his option, at
any time prior to January 1, 2011, to exchange the principal amount of any such
Unrestricted Debenture, or any portion of such principal amount which is $1,000
or an integral multiple thereof, for a Commonly Registered Debenture or Commonly
Registered Debentures in an aggregate principal amount equal to the principal
amount or portion thereof of the Unrestricted Debenture to be so exchanged, by
surrender of the Unrestricted Debenture to be so exchanged in whole or in part
(such surrender to be made in the manner provided in Section 1402 and in
compliance with the provisions of the Master Equity Contract). Such Unrestricted
Debenture so surrendered shall be accompanied by a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with the
issuance of any Commonly Registered Debenture in a name other than that of such
Holder.

                                       62
<PAGE>

         Section 1402. Manner of Exercise of Exchange Privilege. In order to
exchange any Unrestricted Debenture, in whole or in part, for a Commonly
Registered Debenture or Commonly Registered Debentures, the Holder of such
Unrestricted Debenture shall surrender such Unrestricted Debenture at the office
of the Equity Contract Agent in the City of Greenwood, Indiana, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Debenture Registrar duly executed, by the Holder thereof or
his attorney duly authorized in writing, and any instruments or notices which
shall be required pursuant to the provisions of this Indenture, together with
(i) a Collateralized Equity Contract or Collateralized Equity Contracts with an
aggregate purchase obligation equal to the principal amount of such Unrestricted
Debenture, and (ii) an executed acceptance agreement in the form of the
acceptance set forth on the reverse of such Collateralized Equity Contract (or
separate written acceptance agreement satisfactory to the Company). As promptly
as practicable after surrender of such Unrestricted Debenture and any such
written instrument of transfer by the Equity Contract Agent, and upon compliance
with the provisions of such Unrestricted Debenture, with the foregoing
provisions of this Article Fourteen and with the provisions of the Master Equity
Contract, the Company shall cause to be delivered to the Equity Contract Agent
(i) a Commonly Registered Debenture or Commonly Registered Debentures in the
aggregate principal amount issuable upon the exchange of such Unrestricted
Debenture or portion thereof in accordance with the provisions of this Article
Fourteen and (ii) a new Unrestricted Debenture or Unrestricted Debentures in
authorized denominations in an aggregate principal amount equal to the
unexchanged portion of the principal amount of the Unrestricted Debenture
surrendered for exchange. Each Commonly Registered Debenture so issued upon
exchange of such Unrestricted Debenture shall refer, on the face thereof (by
letters and numbers), to a Commonly Registered Equity Contract representing an
aggregate purchase obligation for shares of Common Stock equal to the principal
amount of such Commonly Registered Debenture. Such Commonly Registered Debenture
shall be registered in the name of the obligor under and registered owner of
such Commonly Registered Equity Contract as requested by the Equity Contract
Agent. Subject to the provisions of this Section and of Sections 305 and 1401,
each exchange shall be deemed to have been effected on the date on which such
Unrestricted Debenture shall have been surrendered and all the applicable
provisions of Section 305, of this Article Fourteen and of the Master Equity
Contract shall have been complied with, as aforesaid, and the Person or Persons
in whose name or names any Commonly Registered Debenture or Commonly Registered
Debentures shall be issued upon such exchange shall be deemed to have become on
said date the Holder or Holders thereof. No adjustment shall be made for
interest accrued on any Unrestricted Debenture or portion thereof that shall be
exchanged or on any Commonly Registered Debenture or Commonly Registered
Debentures that shall be issuable upon the exchange of such Unrestricted
Debenture or portion thereof.

                                       63
<PAGE>

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

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed and attested, all as of the day and year first
above written.

                                              FIRST SHARES BANCORP, INC.

                                              By:
                                                 -------------------------------
                                                  Jerry R. Engle
                                                  President

Attest:

---------------------------
Kimberly B. Kling
Secretary

                                              THE HUNTINGTON NATIONAL BANK

                                              By:
                                                 -------------------------------
                                                  Cheri Scott-Geraci
                                                  Vice President

Attest:

---------------------------
Assistant Secretary

                                       64
<PAGE>

STATE OF INDIANA          )
                          )  SS:
COUNTY OF JOHNSON         )

         On the ______ day of ____________, 2002, before me personally came
Jerry R. Engle, to me known, who, being by me duly sworn, did depose and say
that he is President of First Shares Bancorp, Inc., one of the corporations
described in and which executed the foregoing instrument; and that he signed his
name thereto by authority of the Board of Directors of said corporation.

                                                 -------------------------------
                                                     Notary Public
My County of Residence:
                                                 -------------------------------
-----------------------                              Printed

My Commission Expires:

-----------------------

                                       65
<PAGE>

STATE OF OHIO             )
                          )  SS:
COUNTY OF HAMILTON        )

                  On the ______ day of ____________, 2002, before me personally
came Cheri Scott-Geraci, by me known, who, being by me duly sworn, did depose
and say that she is Vice President of The Huntington National Bank, one of the
corporations described in and which executed the foregoing instrument; and that
she signed her name thereto by authority of the Board of Directors of said bank.

                                                 -------------------------------
                                                     Notary Public
My County of Residence:
                                                 -------------------------------
-----------------------                              Printed

My Commission Expires:

-----------------------

                                       66<PAGE>
                                                                     EXHIBIT 4.3

================================================================================

                                 EQUITY CONTRACT
                                AGENCY AGREEMENT

                       BETWEEN FIRST SHARES BANCORP, INC.
                                 AND FIRST BANK

                                   ----------

                              ______________, 2002

                                   ----------

                           FIRST SHARES BANCORP, INC.

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                                PAGE
                                                                                                                ----

                                                         ARTICLE I
                                            ISSUANCE, EXECUTION AND DELIVERY OF
                                                     EQUITY CONTRACTS

<S>               <C>                                                                                           <C>
Section 1.01.     Issuance........................................................................................1
Section 1.02.     Execution and Delivery of Equity Contracts......................................................2
Section 1.03.     Further Provisions Relating to Issuance of Equity Contracts.....................................3

                                                        ARTICLE II
                                                    PURCHASE OF SHARES

Section 2.01.     Mandatory Purchase..............................................................................3
Section 2.02.     Optional Purchase...............................................................................4
Section 2.03.     Payment of Purchase Price.......................................................................4
Section 2.04.     Issuance of Shares..............................................................................5
Section 2.05.     Charges and Taxes...............................................................................6
Section 2.06.     Termination of Obligation.......................................................................6

                                                        ARTICLE III
                                                 ADJUSTMENT OF SHARE PRICE

Section 3.01.     Adjustments.....................................................................................7
Section 3.02.     Notice of Certain Corporate Action.............................................................10
Section 3.03.     Notice of Adjustments..........................................................................11
Section 3.04.     No Invalidation................................................................................11
Section 3.05.     No Changes in Form.............................................................................11

                                                        ARTICLE IV
                                             CANCELLATION OF EQUITY CONTRACTS
                                               UPON REDEMPTION OF DEBENTURES

Section 4.01.     Cancellation of Equity Contracts...............................................................11
Section 4.02.     Notice of Cancellation.........................................................................12
Section 4.03.     Payment to Obligors on Cancellation............................................................12

                                                         ARTICLE V
                                      OTHER PROVISIONS RELATING TO RIGHTS OF OBLIGORS

Section 5.01.     No Rights as Stockholder.......................................................................12
Section 5.02.     No Fractional Shares...........................................................................13
</Table>

                                       i
<PAGE>

<Table>
<S>               <C>                                                                                           <C>
                                                        ARTICLE VI
                                                  TRANSFERS AND EXCHANGES

Section 6.01.     Registration of Transfers......................................................................13
Section 6.02.     Exchanges......................................................................................15
Section 6.03.     Mutilated or Missing Equity Contracts..........................................................17
Section 6.04.     Temporary Equity Contracts.....................................................................18
Section 6.05.     Delivery of Commonly Registered Debentures.....................................................18
Section 6.06.     Countersignature...............................................................................18
Section 6.07.     Charges and Taxes..............................................................................18
Section 6.08.     Registered Obligors............................................................................19

                                                        ARTICLE VII
                                                        COLLATERAL

Section 7.01.     Collateral; Valuation Thereof..................................................................19
Section 7.02.     Interest on Collateral.........................................................................20
Section 7.03.     Principal Payments on Collateral...............................................................20
Section 7.04.     No Obligation to Invest........................................................................21
Section 7.05.     Substitution of Collateral.....................................................................21
Section 7.06.     Release of Collateral Upon Exchange, Transfer, Payment, Cancellation...........................21
Section 7.07.     Default by Obligor.............................................................................23

                                                       ARTICLE VIII
                                           CONCERNING THE EQUITY CONTRACT AGENT

Section 8.01.     The Equity Contract Agent......................................................................23
Section 8.02.     Conditions of Obligations......................................................................24
Section 8.03.     Resignation and Appointment of Successor.......................................................25
Section 8.04.     Payment of Taxes...............................................................................26

                                                        ARTICLE IX
                                                       MISCELLANEOUS

Section 9.01.     Amendment......................................................................................27
Section 9.02.     Notices and Demands............................................................................27
Section 9.03.     Addresses......................................................................................27
Section 9.04.     Applicable Law.................................................................................27
Section 9.05.     Obtaining of Governmental Approvals............................................................27
Section 9.06.     Authorized Shares..............................................................................27
Section 9.07.     Persons Having Rights Under Agreement..........................................................28
Section 9.08.     Successor Corporation to be Substituted........................................................28
Section 9.09.     Headings.......................................................................................28
Section 9.10.     Counterparts...................................................................................28
Section 9.11.     Inspection of Agreement........................................................................28
</Table>

                                       ii
<PAGE>

         EQUITY CONTRACT AGENCY AGREEMENT, dated as of ______________, 2002,
between FIRST SHARES BANCORP, INC., a corporation organized and existing under
the laws of the State of Indiana (the "Corporation"), and FIRST BANK, a banking
institution organized and existing under the laws of the State of Indiana, as
Equity Contract Agent (the "Equity Contract Agent").

         WHEREAS, the Corporation intends to issue its 8% Redeemable
Subordinated Debentures Due July 1, 2011 (the "Debentures") pursuant to an
indenture dated as of the date hereof (the "Indenture") between the Corporation
and The Huntington National Bank, as trustee (the "Trustee"), and to issue with
the Debentures equity contracts (collectively the "Equity Contracts" and
individually an "Equity Contract") between the Corporation and the obligors
thereunder registered from time to time as provided herein (the "Obligors")
pursuant to which the Corporation will sell and the Obligors will purchase an
aggregate of not more than 400,000 shares of its Common Stock, par value $.01
per Share (the "Common Stock"), subject to adjustment as hereinafter provided,
for an aggregate purchase price of $4,000,000.

         WHEREAS, the Equity Contracts shall be issued either (i) as Commonly
Registered Equity Contracts, substantially in the form of Exhibit A hereto
("Commonly Registered Equity Contracts"), which are required to be issued
together with Debentures which are Commonly Registered Debentures (as defined in
the Indenture) or (ii) as Collateralized Equity Contracts, substantially in the
form of Exhibit B hereto ("Collateralized Equity Contracts"), and which may be
transferred separately from Unrestricted Debentures (as defined in the
Indenture);

         WHEREAS, the Corporation desires the Equity Contract Agent to act on
behalf of the Corporation in connection with the issuance, exchange, transfer
and replacement of the Equity Contracts and in connection with the purchase and
sale pursuant thereto of shares of Common Stock, and as agent of the Corporation
to hold collateral security under the Collateralized Equity Contracts, and in
this Agreement wishes to set forth, among other things, the forms and provisions
of the Equity Contracts and the terms and conditions on which they may be
issued, exchanged, transferred and replaced and on which shares of Common Stock
shall or may be purchased pursuant thereto, and the terms and conditions upon
which such collateral security shall be held, enforced and applied;

         NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                       ISSUANCE, EXECUTION AND DELIVERY OF
                                EQUITY CONTRACTS

         Section 1.01. Issuance. Equity Contracts issued pursuant to this
Agreement shall be either (i) Commonly Registered Equity Contracts, which shall
be issued together with a Debenture as a unit, or (ii) Collateralized Equity
Contracts. Each Commonly Registered Equity Contract originally issued pursuant
to this Agreement shall represent an aggregate purchase obligation for shares of
Common Stock equal to the principal amount of the Debenture with

                                       1
<PAGE>

which it shall be issued as a unit. Collateralized Equity Contracts shall be
issued in accordance with Article VII. A Commonly Registered Equity Contract
issued with a Commonly Registered Debenture as a unit shall be registered in the
name of the Obligor thereunder who shall be the registered owner of the Commonly
Registered Debenture with which it shall be issued. No such Commonly Registered
Equity Contract or the Commonly Registered Debenture included in the same unit
shall be delivered to the Obligor under such Commonly Registered Equity Contract
unless such Obligor or the duly authorized agent of such Obligor shall have
completed, executed and delivered to the Equity Contract Agent an acceptance
agreement substantially in the form of the Acceptance set forth in Exhibit A to
this Agreement (or other written acceptance agreement satisfactory to the
Corporation) in the manner contemplated thereby. The term "Corresponding
Commonly Registered Debenture," when used with respect to any Commonly
Registered Equity Contract, shall mean the Commonly Registered Debenture which
refers by letters and numbers to such Commonly Registered Equity Contract on the
face thereof. The term "Corresponding Commonly Registered Equity Contract," when
used with respect to any Commonly Registered Debenture, shall mean the Commonly
Registered Equity Contract referred to on the face of such Commonly Registered
Debenture. No Collateralized Equity Contract shall be delivered to the Obligor
under such Collateralized Equity Contract unless such Obligor or the duly
authorized agent of such Obligor shall have completed, executed and delivered to
the Equity Contract Agent a collateral agreement substantially in the form of
the Collateral Agreement set forth in Exhibit A to this Agreement (or other
written collateral agreement satisfactory to the Corporation) and delivered to
the Contract Agent the collateral required to be delivered under such collateral
agreement.

         Section 1.02. Execution and Delivery of Equity Contracts. (a) Each
Equity Contract, whenever issued, shall be in registered form only and shall be
dated the date of countersignature thereof by the Equity Contract Agent. The
aggregate purchase obligation under any Equity Contract originally issued
hereunder shall be in an amount of $1,000 or any integral multiple of $1,000.
Each Equity Contract may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Corporation executing
the same may approve (the execution thereof to be conclusive evidence of such
approval) and as are not inconsistent with the provisions of this Agreement, or
as may be required to comply with any law or with any rule or regulation made
pursuant thereto, or to conform to usage. The Equity Contract shall be signed on
behalf of the Corporation by its President or any Vice President, and attested
by its Secretary or any Assistant Secretary, under its corporate seal, if any.
Such signatures may be manual or facsimile signatures of the present or any
future such authorized officers and may be imprinted or otherwise reproduced on
the Equity Contracts. Any seal of the Corporation may be in the form of a
facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Equity Contracts.

         (b) No Equity Contract shall be valid until it has been countersigned
by the manual signature of the Equity Contract Agent; provided that no Commonly
Registered Equity Contract shall be valid until such Commonly Registered Equity
Contract has been countersigned by the manual signature of the Equity Contract
Agent and the certificate of authentication on the Corresponding Commonly
Registered Debenture has been executed by the Trustee or its agent. Such
countersignature by the Equity Contract Agent upon any Equity Contract executed
by the

                                       2
<PAGE>

Corporation shall be conclusive evidence that the Equity Contract so
countersigned has been duly delivered hereunder.

         (c) In case any officer of the Corporation who shall have signed any of
the Equity Contracts either manually or by facsimile signature shall cease to be
such officer before the Equity Contracts so signed shall have been countersigned
and delivered by the Equity Contract Agent, such Equity Contracts nevertheless
may be countersigned and delivered as though the person who signed such Equity
Contracts had not ceased to be such officer of the Corporation; and any Equity
Contract may be signed on behalf of the Corporation by such persons as, at the
actual date of the execution thereof, shall be the proper officers of the
Corporation, although at the date of the execution of this Agreement any such
person was not such an officer.

         Section 1.03. Further Provisions Relating to Issuance of Equity
Contracts. Equity Contracts relating to the purchase of an aggregate of not more
than 400,000 shares of Common Stock, as such number of shares may from time to
time be adjusted pursuant to Article III hereof (the "Shares"), at an aggregate
purchase price of $4,000,000, may be executed by the Corporation and delivered
to the Equity Contract Agent upon the execution of this Agreement or from time
to time thereafter. Prior to the original issuance of Equity Contracts, the
Equity Contract Agent shall have received a written request of the Corporation
authorizing the countersignature and delivery thereof to or upon the order of
the Corporation, such Equity Contracts to be registered in the name of the
persons and to provide for the respective aggregate purchase obligations set
forth in such request of the Corporation. Subsequent to such original issuance
of Equity Contracts, the Equity Contract Agent shall, subject to the conditions
set forth in this Article I and Articles VI and VII hereof, countersign Equity
Contracts issued in exchange or substitution for or upon transfer of one or more
previously countersigned Equity Contracts; provided that in the case of Commonly
Registered Equity Contracts which are to be issued in exchange or substitution
for or upon transfer of Commonly Registered Equity Contracts, or in exchange for
Collateralized Equity Contracts, such Commonly Registered Equity Contracts shall
be registered only in the same name in which the Corresponding Commonly
Registered Debenture is registered. Prior to issuance of a Collateralized Equity
Contract, whether in exchange for a Commonly Registered Equity Contract or upon
transfer of a Collateralized Equity Contract, the Equity Contract Agent shall
have received the Collateral referred to in the related Collateral Agreement
which shall be of the kind and value required by Article VII hereof.

                                   ARTICLE II

                               PURCHASE OF SHARES

         Section 2.01. Mandatory Purchase. Each Equity Contract shall obligate
the Obligor thereunder to purchase, and the Corporation to sell, on January 1,
2011 (the "Purchase Date"), that number of Shares as shall have an aggregate
purchase price equal to the aggregate purchase obligation set forth therein at a
price of $10 per Share, as adjusted from time to time pursuant to Article III
hereof.

                                       3
<PAGE>

         Section 2.02. Optional Purchase. At any time prior to the Purchase
Date, the Obligator under an Equity Contract, upon surrender of such Equity
Contract, with the form of election to purchase on the reverse thereof duly
filled in and signed, at the office of the Equity Contract Agent specified in
Section 9.03, may purchase all or a portion of the Shares covered by such Equity
Contract at a purchase price of $10 per share, as adjusted from time to time
pursuant to Article III hereof. The aggregate purchase price of Shares purchased
must be $1,000 or any integral multiple of $1,000 (without regard to any cash
settlement for fractional shares).

         Section 2.03. Payment of Purchase Price. (a) The purchase price for the
Shares purchased pursuant to an Equity Contract shall be payable at the office
of the Equity Contract Agent specified in Section 9.03, (i) in lawful money of
the United States of America, by bank wire transfer to the Equity Contract Agent
in immediately available funds or by certified or official bank check in New
York Clearing House funds payable to or upon the order of the Corporation, or
(ii) subject to Section 2.03(b) hereof, by surrender of an equal aggregate
unpaid principal amount of Debentures; provided, however, that after the
Corporation shall have mailed to the Obligors under Equity Contracts a
Cancellation Notice in compliance with Section 4.02 hereof, the purchase price
for the Shares purchased pursuant to a Commonly Registered Equity Contract shall
be payable only by surrender of an equal aggregate unpaid principal amount of
the Corresponding Commonly Registered Debenture. Payment of the purchase price
for Shares purchased under any Equity Contract shall be accepted and credited by
the Corporation only in amounts equal to $1,000 or any integral multiple of
$1,000. The Equity Contract Agent shall deliver to the Corporation all
Debentures and other consideration tendered to it as hereinabove provided. With
respect to any Commonly Registered Equity Contract, the Corporation is entitled
on or after the Purchase Date to offset the obligation of the Corporation to pay
the principal of the Corresponding Commonly Registered Debenture (whether or not
such Corresponding Commonly Registered Debenture has matured), in whole or in
part, against the obligation of the Obligor under such Commonly Registered
Equity Contract to pay the unpaid aggregate purchase price of the Shares covered
thereby, in full and complete satisfaction of the obligation of the Corporation
to pay all or such part of the principal of such Corresponding Commonly
Registered Debenture. Upon making such offset, the Corporation shall deliver
certificates for such Shares to the Equity Contract Agent, which shall hold such
certificates for the account of, and deliver the same to, the registered holder
of such Corresponding Commonly Registered Debenture upon the presentation
thereof. The Corporation shall not be obligated to sell any Shares or deliver
any certificates therefor unless it shall have received payment in full of the
aggregate purchase price for the Shares purchased in the manner herein set
forth.

         (b) Debentures surrendered in payment or partial payment of the
aggregate purchase obligation for Shares will be accepted and credited in an
amount equal to the unpaid principal amount thereof; provided that (i)
Debentures will be credited only in amounts equal to $1,000 or any integral
multiple of $1,000, (ii) a Commonly Registered Debenture may be surrendered in
partial or complete satisfaction only of the aggregate purchase obligation under
the Corresponding Commonly Registered Equity Contract and may not be surrendered
in partial or complete satisfaction of the aggregate purchase obligation under
any other Equity Contract; and (iii) Unrestricted Debentures may not be
surrendered in partial or complete satisfaction of the aggregate purchase
obligation under any Commonly Registered Equity Contract. If less than the full
unpaid principal amount of a Debenture is to be applied to the payment of all or
any part

                                       4
<PAGE>

of the aggregate purchase price of Shares purchased, then the Equity Contract
Agent shall obtain a new Debenture or Debentures in an aggregate principal
amount equal to the aggregate principal amount of the Debenture or Debentures so
surrendered less the amount of the principal thereof applied to the aggregate
purchase price for such Shares and shall deliver such new Debenture or
Debentures to the Obligor surrendering the same; provided, however, that in any
case in which a Commonly Registered Debenture is surrendered prior to the
Purchase Date in partial payment for Shares, any new Debenture so obtained shall
be a Commonly Registered Debenture, and shall be registered in the name of the
registered Obligor in whose name the Commonly Registered Equity Contract
representing the remaining aggregate purchase obligation of such Obligor shall
be registered; and provided further, that, in any case in which an Unrestricted
Debenture is surrendered at any time in full or partial payment for Shares, any
new Debenture or Debentures so obtained shall be an Unrestricted Debenture or
Unrestricted Debentures. In any case in which less than the full unpaid
principal amount of any Commonly Registered Debenture is to be applied on or
after the Purchase Date, whether upon surrender or upon exercise of the
Company's right of offset as provided in the Commonly Registered Debentures, to
the payment of all or any part of the aggregate purchase price of Shares
purchased under the Corresponding Commonly Registered Equity Contract, and upon
surrender of any such Commonly Registered Debenture in respect of which the
Company shall have exercised such right of offset, the Equity Contract Agent
shall obtain a new Unrestricted Debenture or Unrestricted Debentures in an
aggregate principal amount equal to the principal amount of the Commonly
Registered Debenture so surrendered less the amount of the principal thereof
applied to the aggregate purchase price for such Shares, and shall deliver such
new Unrestricted Debenture or Unrestricted Debentures to the Obligor
surrendering such Commonly Registered Debenture. In any case in which the
purchase price under a Commonly Registered Equity Contract shall have been paid,
in whole or in part, on or after the Purchase Date, in any manner other than by
surrender of the Corresponding Commonly Registered Debenture or by exercise of
the Company's right of offset as provided in the Commonly Registered Debentures,
the holder of such Corresponding Commonly Registered Debenture shall thereafter
be entitled to exchange such Corresponding Commonly Registered Debenture for an
Unrestricted Debenture or Unrestricted Debentures in an aggregate principal
amount equal to the amount so paid. In any case in which the aggregate purchase
obligation under a Commonly Registered Equity Contract shall have been paid
prior to the Purchase Date, in whole or in part, in any manner other than by
surrendered of the Corresponding Commonly Registered Debenture, the holder of
such Corresponding Commonly Registered Debenture shall thereafter been entitled
to exchange such Corresponding Commonly Registered Debenture for an Unrestricted
Debenture or Unrestricted Debentures in an aggregate principal amount equal to
the amount so paid, and, if such aggregate purchase obligation shall not be paid
in full, for a Commonly Registered Debenture in a principal amount equal to the
remaining aggregate purchase obligation under such Commonly Registered Equity
Contract.

         Section 2.04. Issuance of Shares. Upon its receipt of payment in full
of the aggregate purchase price for the Shares purchased by any Obligor pursuant
to the foregoing provisions of this Article II, and subject to the provisions of
Section 2.05, the Equity Contract Agent shall tender the same to the Corporation
and shall obtain from the Corporation, and shall cause to be delivered to or
upon the written order of the Obligor under the related Equity Contract or
Equity Contracts and in such name or names as such Obligor may designate, a
certificate for the Shares

                                       5
<PAGE>

so purchased. Such certificate shall be deemed to have been issued and any
person so designated to be named therein shall be deemed to have become a holder
of record of such Shares as of the date of the payment in full for such Shares
shall have been made. In the event that less than all of the Shares covered by
an Equity Contract are purchased pursuant to the optional right to purchase set
forth in Section 2.02, a new Equity Contract will be issued for the remaining
aggregate purchase obligation under the Equity Contract so surrendered and will
be transmitted to such Obligor at its registered address, and the Equity
Contract Agent is hereby authorized to countersign the required new Equity
Contract; provided that if the Equity Contract surrendered is a Commonly
Registered Equity Contract, the new Equity Contract so issued shall be a
Commonly Registered Equity Contract and shall be issued in accordance with the
first proviso in the second sentence of Section 2.03(b), mutatis mutandis; and
provided further that, if the Equity Contract surrendered is a Collateralized
Equity Contract, the new Equity Contract so issued shall be a Collateralized
Equity Contract and shall be issued in accordance with the second proviso in the
second sentence of Section 2.03(b), mutatis mutandis. Subject to the provisions
of Section 6.02(a), all Equity Contracts surrendered upon purchase of Shares
shall be cancelled by the Equity Contract Agent and shall then be disposed of in
a manner satisfactory to the Corporation.

         Section 2.05. Charges and Taxes. The Corporation will pay all
documentary stamp taxes attributable to the initial issuance and delivery of
Shares upon the purchase thereof. The Corporation shall not be required to pay
any tax or taxes which may be payable in respect of any transfer involved in the
issue of any Equity Contracts, any exchange of or substitution for an Equity
Contract or any issuance of certificates for Shares in a name other than that of
the registered Obligor under an Equity Contract surrendered upon the purchase of
Shares covered thereby, and the Corporation shall not be required to issue or
deliver such certificates or such Equity Contracts unless or until the person or
persons requesting the transfer or issuance thereof shall have paid to the
Corporation the amount of such tax or shall have established to the satisfaction
of the Corporation that such tax has been paid.

         Section 2.06. Termination of Obligation. The Equity Contracts and the
obligations and rights of the Corporation and the Obligors thereunder shall
terminate if on or prior to the Purchase Date either of the following events
shall have occurred:

                  (1)      the Corporation or any of its subsidiaries
                           consolidated with the Corporation for financial
                           reporting purposes the assets of which, as shown on
                           such subsidiary's balance sheet as of the end of the
                           immediately preceding fiscal quarter equal or exceed
                           twenty percent (20%) of the consolidated assets of
                           the Corporation as shown on its consolidated balance
                           sheet as of the end of such quarter (a "Major
                           Subsidiary") or any group of subsidiaries that, taken
                           as a whole, would constitute a Major Subsidiary,
                           pursuant to or within the meaning of Title 11, U.S.
                           Code or any similar Federal or state law for the
                           relief of debtors (herein referred to as "Bankruptcy
                           Law"):

                           (A)      commences a voluntary case,

                           (B)      consents to the entry of an order for relief
                                    against it in an involuntary case,

                                       6
<PAGE>

                           (C)      consents to the appointment of a custodian
                                    of it or for all or substantially all of its
                                    property,

                           (D)      makes a general assignment for the benefit
                                    of its creditors, or

                           (E)      generally is not paying its debts as they
                                    become due; or

                  (2)      a court of competent jurisdiction enters an order or
                           decree under any Bankruptcy Law that:

                           (A)      is for relief against the Corporation or any
                                    of its subsidiaries that is a Major
                                    Subsidiary or any group of subsidiaries
                                    that, taken as a whole, would constitute a
                                    Major Subsidiary in an involuntary case;

                           (B)      appoints a receiver, trustee, assignee,
                                    liquidator, custodian or other similar
                                    official under any Bankruptcy Law (i) of the
                                    Corporation or any of its subsidiaries that
                                    is a Major Subsidiary or any group of
                                    subsidiaries that, taken as a whole, would
                                    constitute a Major Subsidiary or (ii) for
                                    all or substantially all of the property of
                                    the Corporation or any of its subsidiaries
                                    that is a Major Subsidiary or any group of
                                    subsidiaries that, taken as a whole, would
                                    constitute a Major Subsidiary; or

                           (C)      orders the liquidation of the Corporation or
                                    any of its subsidiaries which is a Major
                                    Subsidiary or any group of subsidiaries
                                    that, taken as a whole, would constitute a
                                    Major Subsidiary;

                           and the order or decree remains unstayed and in
                           effect for 60 consecutive days.

                                   ARTICLE III

                            ADJUSTMENT OF SHARE PRICE

         Section 3.01. Adjustments. The purchase price per Share applicable to a
purchase pursuant to Sections 2.01, 2.02 or 4.02 hereof (the "Share Price") and
the number of Shares which an Obligor is obligated to purchase pursuant to each
Equity Contract shall be subject to adjustment as follows:

                  (a) In case the Corporation shall (i) declare a dividend or
make a distribution on shares of Common Stock in shares of its Common Stock,
(ii) subdivide its outstanding shares of Common Stock into a greater number of
shares, or (iii) combine its outstanding shares of Common Stock into a smaller
number of shares, the Share Price in effect at the time of the record date for
such dividend or distribution or the effective date of such subdivision or

                                       7
<PAGE>

combination shall be proportionately adjusted so that the Obligor under any
Equity Contract shall thereafter be entitled to receive upon purchase (whether
mandatory or optional) the number of Shares which such Obligor would have owned
if the shares of Common Stock issuable pursuant to the Equity Contract prior to
such transaction had been purchased immediately prior to such time. Any shares
of Common Stock issuable in payment of a dividend shall be deemed to have been
issued immediately prior to the time of the record date for such dividend for
purposes of calculating the number of outstanding shares of Common Stock under
paragraphs (b) and (c) below. Such adjustment shall be made successively
whenever any event listed above shall occur.

                  (b) In case the Corporation shall fix a record date for the
issuance of rights or warrants to all holders of shares of its Common Stock
entitling them (for a period expiring within 45 days after the record date
mentioned above) to subscribe for or purchase shares of Common Stock at a price
per share less than the then current market price per share of Common Stock (as
defined in paragraph (d) below) at the record date mentioned above, the Share
price shall be adjusted immediately thereafter so that it shall equal the price
determined by multiplying the Share Price in effect immediately prior thereto by
a fraction, of which the numerator shall be the number of shares of Common Stock
outstanding on such record date plus the number of shares of Common Stock which
the aggregate offering price of the total number of shares of Common Stock so
offered would purchase at such current market price and of which the denominator
shall be the number of shares of Common Stock outstanding on such record date
plus the number of additional shares of Common Stock so offered for subscription
or purchase. Shares of Common Stock owned by or held for the account of the
Corporation shall be deemed outstanding for the purpose of any such computation.
Such adjustment shall be made successively whenever such a record date is fixed.
To the extent that such rights or warrants are not so issued or such rights or
warrants are not exercised prior to the expiration thereof, the Share Price
shall be readjusted to the Share Price which would then be in effect if such
record dated had not been fixed, or to the Share Price which would then be in
effect based upon the number of shares of Common Stock actually delivered upon
the exercise of such rights or warrants, as the case may be.

                  (c) In case the Corporation shall fix a record date for the
making of a distribution to all holders of shares of its Common Stock (i) of
shares of any class of stock not included in the definition of Common Stock set
forth in the recitals to this Agreement or (ii) of evidences of its indebtedness
or (iii) of assets (excluding cash dividends or distributions, and dividends or
distributions referred to in paragraph (a) above) or (iv) of rights or warrants
(excluding those referred to in paragraph (b) above), then in each such case the
Share Price in effect thereafter shall be determined by multiplying the Share
Price in effect immediately prior thereto by a fraction, of which the numerator
shall be the total number of shares of Common Stock outstanding multiplied by
the current market price per share on such record date less the fair market
value (as determined in good faith by the Board of Directors of the Corporation,
whose determination shall be conclusive) of said shares, evidences of
indebtedness or assets or rights or warrants so distributed, and of which the
denominator shall be the total number of shares of Common Stock outstanding
multiplied by such current market price per share. Such adjustment shall be made
successively whenever such record date is fixed; and to the extent that such
distribution is not so made, the Share Price shall be readjusted to the Share
Price which would then be in effect if such record date had not been fixed.

                                       8
<PAGE>

                  (d) For the purpose of any computation under paragraphs (b)
and (c) above, the "current market price" per share of Common Stock on any date
shall be deemed to be the (i) the last reported sales price of Common Stock on
the Nasdaq National Market or Nasdaq SmallCap Market, or any similar system of
automated dissemination of quotations of securities prices then in common use,
if so quoted, or (ii) if not quoted as described in clause (i), the mean between
the high bid and low asked quotations for Common Stock as reported by the
National Quotation Bureau Incorporated, or (iii) if the Common Stock is listed
or admitted for trading on any national securities exchange, the last sales
price, or the closing bid price if no sale occurred, of Common Stock on the
principal securities exchange on which the Common Stock is listed. If the Common
Stock is quoted on a national securities or central market system, in lieu of a
market or quotation system described above, the closing price shall be
determined in the manner set forth in clause (i) of the preceding sentence if
bid and asked quotations are reported but actual transactions are not, and in
the manner set forth in clause (iii) of the preceding sentence if actual
transactions are reported. If none of the conditions set forth above is met, the
current market price per share on any day shall be such market price as shall be
determined by such other reasonable method as the Board of Directors of the
Corporation shall, in its discretion, select and apply.

                  (e) No adjustment of the Share Price hereunder shall be
required unless such adjustment would require an increase or decrease in such
Share Price of at least 0.5% thereof; provided, however, that any adjustments
which by reason of this paragraph (e) are not required to be made shall be
carried forward cumulatively and taken into account in any subsequent
adjustment.

                  (f) Upon each adjustment of the Share Price as a result of the
calculations made in paragraphs (a), (b), or (c) of this Section 3.01, each
Equity Contract outstanding prior to the making of the adjustment in the Share
Price shall thereafter represent the obligation and the right to purchase, at
the adjusted Share Price, that number of Shares obtained by (i) multiplying the
number of Shares purchasable prior to adjustment of the number of Shares by the
Share Price in effect prior to adjustment of the Share Price and (ii) dividing
the product so obtained by the Share Price in effect after such adjustment of
the Share Price. All calculations under this paragraph (f) shall be made to the
nearest one-hundredth of a Share.

                  (g) In case of any capital reorganization of the Corporation
or any reclassification of the Common Stock (other than a subdivision or
combination of outstanding shares of Common Stock), or in the case of the
consolidation of the Corporation with or the merger of the Corporation with or
into any other corporation (other than a consolidation or a merger in which the
Corporation is the continuing corporation) or of the sale of the properties and
assets of the Corporation as, or substantially as, an entirety to any other
business organization, each Equity Contract shall, after such capital
reorganization, reclassification, consolidation, merger or sale and upon the
terms and conditions specified in this Agreement, represent the obligation and
the right to purchase the number of shares of stock or other securities or
property to which the Shares issuable (at the time of such capital
reorganization, reclassification, merger or sale) upon purchase thereof pursuant
to such Equity Contract would have been entitled (including the right to make
any election with respect to the receipt of such

                                       9
<PAGE>

shares of stock or other securities or property to which such Shares would have
been entitled) upon such capital reorganization, reclassification of Common
Stock, consolidation, merger or sale if such purchase had taken place
immediately prior thereto; and in any case, if necessary, the provisions set
forth in this Section 3.01 with respect to the rights and interests thereafter
of the holders of the Equity Contracts shall be appropriately adjusted so as to
be applicable, as nearly as may reasonably be, to any shares of stock or other
securities or property thereafter deliverable on the Purchase Date or on the
date of optional purchase under an Equity Contract.

                  (h) The Corporation may make such reductions in the Share
Price, in addition to those required by paragraphs (a), (b) or (c) of this
Section 3.01, as it considers to be advisable in order that any event treated
for federal income tax purposes as a dividend of stock or stock rights shall not
be taxable to the recipient.

         Section 3.02. Notice of Certain Corporate Action.

         In case:

                  (a) the Corporation shall declare a dividend (or any other
distribution) on its Common Stock payable otherwise than in cash; or

                  (b) the Corporation shall authorize the granting to the
holders of its Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any other rights; or

                  (c) of any reclassification of the Common Stock of the
Corporation (other than a subdivision or combination of its outstanding shares
of Common Stock), or of any consolidation or merger to which the Corporation is
a party and for which approval of any stockholders of the Corporation is
required, or of the sale or transfer of all or substantially all of the assets
of the Corporation; or

                  (d) of the voluntary or involuntary dissolution, liquidation
or winding up of the Corporation;

then the Corporation shall cause to be filed with the Equity Contract Agent and
shall cause to be mailed to all Obligors at their registered addresses, at least
20 days (or 10 days in any case specified in clause (a) or (b) above) prior to
the applicable record date hereinafter specified, a notice stating (i) the date
on which a record is to be taken for the purpose of such dividend, distribution,
rights or warrants, or, if a record is not to be taken, the date as of which the
holders of Common Stock of record to be entitled to such dividend, distribution,
rights or warrants are to be determined, (ii) the date on which such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up is expected to become effective, and (iii) the date as
of which it is expected that holders of Common Stock of record shall be entitled
to exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up.

                                       10
<PAGE>

         Section 3.03. Notice of Adjustments. Whenever the Share Price is
adjusted as provided in this Article III:

                  (a) The Corporation shall compute the adjusted Share Price and
the adjusted number of Shares issuable at such adjusted Share Price per $1,000
Equity Contract in accordance with Section 3.01 and shall prepare a certificate
signed by the President or any Vice President of the Corporation setting forth
the adjusted Share Price and the adjusted number of Shares issuable at such
adjusted Share Price per $1,000 Equity Contract and showing in reasonable detail
the facts upon which such adjustment is based, and such certificate shall
forthwith be filed with the Equity Contract Agent; provided, however, that the
Equity Contract Agent shall have no duty with respect to any such certificate
filed with it except to keep the same on file and available for inspection
during reasonable hours; and

                  (b) The Corporation shall cause to be mailed to each Obligor
at its then registered address by first-class mail, postage prepaid, a notice
stating that the Share Price and the number of Shares purchasable per $1,000
Equity Contract have been adjusted and setting forth the adjusted Share Price
and the adjusted number of Shares issuable at the adjusted Share Price.

         Section 3.04. No Invalidation. Without limiting the obligation of the
Corporation hereunder to give the notices provided in Section 3.02, the failure
of the Corporation to give such notice shall not invalidate any corporate action
by the Corporation.

         Section 3.05. No Changes in Form. The form of Equity Contract need not
be changed because of any change in the Share Price or in the number of Shares
purchasable pursuant thereto, and each Equity Contract issued after such change
may continue to express the same purchase price per Share as is stated in the
similar Equity Contracts initially issued pursuant to this Agreement, and such
purchase price per Share therein set forth shall be deemed to have been so
changed.

                                   ARTICLE IV

                        CANCELLATION OF EQUITY CONTRACTS
                          UPON REDEMPTION OF DEBENTURES

         Section 4.01. Cancellation of Equity Contracts. In the event that the
Corporation should exercise its right to redeem the Debentures pursuant to
Article Twelve of the Indenture, the Equity Contracts then outstanding, and the
obligations and rights of the Corporation and the Obligors thereunder and under
any Collateral Agreements entered into with respect to Collateralized Equity
Contracts, shall be cancelled on the date on which the Debentures are redeemed
(the "Cancellation Date"). Upon such cancellation, the Obligor under such Equity
Contracts shall receive an amount (the "Cancellation Payment") equal to one
percent (1%) of the principal amount of the purchase obligation under each
Equity Contract; provided, however, that if the Debentures are redeemed on or
after July 1, 2010, or after the occurrence of an Adverse Tax Determination (as
defined in the Indenture), or an Adverse Capital Determination (as

                                       11
<PAGE>

defined in the Indenture), no Cancellation Payment will be made; and provided,
further, that if the Debentures are redeemed after an Adverse Tax Determination
or an Adverse Capital Determination, holders of Equity Contracts shall have the
right to purchase the Shares purchasable thereunder at a price equal to the
lower of: (i) ninety-four percent (94%) of the average current market price of
the Common Stock, as that term is defined in Section 3.01(d), for the 10
business days prior and 10 business days after the Adverse Tax Determination or
Adverse Capital Determination (but not less than $5.00 per share subject to
adjustment as provided in Section 3.01) or (ii) the designated Equity Contract
purchase price. In no event shall a Cancellation Payment be made to the extent
Common Stock is purchased prior to cancellation of the Equity Contract.

         Section 4.02. Notice of Cancellation. Notice of cancellation of the
Equity Contracts pursuant to Section 4.01 ("Cancellation Notice") shall be given
to the Obligors thereunder by the Corporation, or at the Corporation's
direction, by the Equity Contract Agent. The Cancellation Notice shall be sent
to such Obligors by first class mail, postage prepaid, not less than thirty (30)
nor more than sixty (60) days prior to the Cancellation Date, at their last
addresses as they shall appear on the records of the Equity Contract Agent. Each
Cancellation Notice shall specify the Cancellation Date, the amount of the
Cancellation Payment, if any, and the place where Equity Contracts are to be
presented and surrendered. Any Cancellation Notice which is mailed in the manner
herein provided shall be conclusively presumed to have duly given, whether or
not received by the Obligor.

         Section 4.03. Payment to Obligors on Cancellation. At least one (1)
business day before the Cancellation Date specified in the Cancellation Notice,
the Corporation shall deposit with the Equity Contract Agent an amount of money
sufficient to pay all Obligors under Equity Contracts their Cancellation
Payment, if any, without interest. Upon presentation and surrender of the Equity
Contracts at the place provided in the Cancellation Notice, the Obligors
thereunder shall be paid the Cancellation Payment payable with respect to such
Equity Contracts, if any, and the Collateral then held as collateral security
for any Collateralized Equity Contracts shall be returned to the Obligors
thereunder.

                                    ARTICLE V

                 OTHER PROVISIONS RELATING TO RIGHTS OF OBLIGORS

         Section 5.01. No Rights as Stockholder. No Obligor, as such, shall be
entitled to vote or receive dividends or be deemed the holder of shares of
Common Stock of the Corporation for any purpose, nor shall anything contained in
any Equity Contract be construed to confer upon an Obligor, as such, any of the
rights or privileges of a stockholder of the Corporation, including without
limitation any right to vote, give or withhold consent to any corporate action
(whether upon any recapitalization, issue of stock, reclassification of stock,
consolidation, merger, sale of assets or otherwise), receive notice of meetings
or other action affecting stockholders (except for notices provided for in
Section 3.02 hereof), receive dividends or subscription rights, or otherwise. No
Obligor shall, upon the purchase of Shares, be entitled to any dividends that
may have been paid with respect to such Shares prior to the date of purchase
thereof. No Equity

                                       12
<PAGE>

Contract shall be deemed to be a subscription for the Shares covered thereby for
any purpose. Each Equity Contract shall be deemed to be a executory contract for
purposes of Title 11 of the United States Code.

         Section 5.02. No Fractional Shares. Anything contained herein to the
contrary notwithstanding, the Corporation shall not be required to issue or sell
any fraction of a Share pursuant hereto or to any Equity Contract, but in any
case where the Obligor would, except for the provisions of this Section 5.02, be
entitled to receive a fraction of a Share, the Corporation shall, upon the
purchase by the Obligor of the largest number of full Shares covered by the
related Equity Contract or portion thereof with respect to which the purchase
right is exercised, pay in cash to such Obligor in lieu of such fractional share
a sum equal to the same fraction of the purchase price per Share then applicable
under the Equity Contract.

                                   ARTICLE VI

                             TRANSFERS AND EXCHANGES

         Section 6.01. Registration of Transfers. (a) The Corporation shall
keep, at the office of the Equity Contract Agent, a register in which, subject
to such reasonable regulations as it may prescribe, the Corporation shall
provide for registration of Equity Contracts and registration of transfers of
Equity Contracts as in this Section 6.01 provided. Such register shall be in
written form or in any other form capable of being converted into written form
within a reasonable time.

                  (b) Subject to the restrictions set forth in the respective
Equity Contracts, in the Debentures and herein, and upon due presentment for
registration of transfer at the office of the Equity Contract Agent specified in
Section 9.03, the Equity Contract Agent shall from time to time prior to the
Purchase Date register the transfer of any outstanding Equity Contracts. All
Equity Contracts presented for registration of transfer shall (if so required by
the Corporation or the Equity Contract Agent) be dully endorsed by, or be
accompanied by a written instrument or instruments of transfer in form
satisfactory to the Corporation and the Equity Contract Agent duly executed by,
the Obligor or his attorney duly authorized in writing, and signatures thereon
or on such instruments, as the cases may be, guaranteed by any commercial bank
or trust company or member of a national securities exchange. Upon any such
registration of transfer, the Equity Contract Agent shall issue to the
transferee a new Commonly Registered Equity Contract or Collateralized Equity
Contract, as the case may be, in accordance with the provisions of this
Agreement.

                  (c) In order to effect registration of transfer to a single
transferee of a Commonly Registered Equity Contract and the Corresponding
Commonly Registered Debenture, the Obligor under such Commonly Registered Equity
Contract and the transferee shall complete and execute the form of Assignment II
and the form of Acceptance on the reverse of such Commonly Registered Equity
Contract (or separate written acceptance agreement satisfactory to the
Corporation), respectively, in the manner contemplated thereby, and shall
surrender such Commonly Registered Equity Contract to the Equity Contract Agent
together with the Corresponding Commonly Registered Debenture endorsed and
accompanied by such instruments

                                       13
<PAGE>

and notices as shall be required pursuant to the provisions of the Indenture.
Upon receipt of the foregoing items, the Equity Contract Agent shall present
such Commonly Registered Debenture and any accompanying instruments and notices
for the registration of transfer of such Commonly Registered Debenture in
accordance with the provisions of the Indenture. Upon receipt by the Equity
Contract Agent of the Commonly Registered Debenture issued upon such
registration of transfer, the Corporation shall execute, and the Equity Contract
Agent shall countersign, the Commonly Registered Equity Contract which the
transferee is entitled to receive, and the Equity Contract Agent shall deliver
to the transferee such Commonly Registered Equity Contract and Commonly
Registered Debenture.

                  (d) In order to effect registration of transfer of a Commonly
Registered Equity Contract which is to be transferred separately from the
Corresponding Commonly Registered Debenture, the Obligor under such Commonly
Registered Equity Contract and the transferee shall complete and execute the
form of Assignment I and the form of Collateral Agreement on the reverse of such
Commonly Registered Equity Contract (or separate written collateral agreement
satisfactory to the Corporation), respectively, in the manner contemplated
thereby, and shall surrender such Commonly Registered Equity Contract to the
Equity Contract Agent together with (i) the Corresponding Commonly Registered
Debenture endorsed and accompanied by such instruments and notices as shall be
required pursuant to the provisions of the Indenture and (ii) the Collateral
referred to in such Collateral Agreement which shall be of the kind and value
required by Article VII hereof. Upon receipt of the foregoing items, the Equity
Contract Agent shall surrender such Commonly Registered Debenture and any
accompanying instruments and notices for exchange in accordance with the
provisions of the Indenture for an Unrestricted Debenture registered in the name
of the holder of the Commonly Registered Debenture so surrendered for exchange.
Upon receipt by the Equity Contract Agent of the Unrestricted Debenture issued
upon such exchange, the Corporation shall execute, and the Equity Contract Agent
shall countersign, the Collateralized Equity Contract which the transferee is
entitled to receive, and the Equity Contract Agent shall deliver to the
transferee such Collateralized Equity Contract and shall deliver to the
transferor such Unrestricted Debenture. No transfer of a Commonly Registered
Equity Contract separately from the Corresponding Commonly Registered Debenture
may be registered after the Corporation shall have mailed to the Obligors under
Equity Contracts a Cancellation Notice in compliance with Section 4.02 hereof.

                  (e) In order to effect registration of transfer of a
Collateralized Equity Contract, the Obligor under such Collateralized Equity
Contract and the transferee shall complete and execute the form of Assignment
and the form of Collateral Agreement on the reverse of such Collateralized
Equity Contract (or separate written collateral agreement satisfactory to the
Corporation), respectively, in the manner contemplated thereby, and shall
surrender such Collateralized Equity Contract to the Equity Contract Agent
together with the Collateral referred to in such Collateral Agreement which
shall be of the kind and value required by Article VII hereof. Upon receipt by
the Equity Contract Agent of the foregoing items, the Corporation shall execute,
and the Equity Contract Agent shall countersign, the Collateralized Equity
Contract which the transferee is entitled to receive, and the Equity Contract
Agent shall deliver to the transferee such Collateralized Equity Contract.

                                       14
<PAGE>

         Section 6.02. Exchanges. (a) Upon satisfaction of the requirements set
forth or referred to in this Section 6.02, Equity Contracts may be exchanged at
the option of the Obligor thereunder, prior to the Purchase Date, when
surrendered at the office of the Equity Contract Agent specified in Section
9.03. All Equity Contracts surrendered for exchange or presented for transfer
which have set forth therein the Obligor's or the transferee Obligor's
Collateral Agreement or acceptance of the purchase obligations of the Obligor
under the Equity Contract to be issued upon such exchange or transfer to such
Obligor or transferee Obligor shall be retained by the Equity Contract Agent
uncancelled but marked with a notation as to the identity of the Equity Contract
issued in exchange or upon transfer thereof as evidence of such Obligor's or
transferee Obligor's Collateral Agreement or acceptance of liability under the
Equity Contract so issued upon exchange or upon transfer.

                  (b) In order to exchange a Commonly Registered Equity Contract
for Commonly Registered Equity Contracts representing an equal aggregate
purchase obligation for Shares, the Obligor thereunder shall surrender such
Commonly Registered Equity Contract to the Equity Contract Agent together with
the Corresponding Commonly Registered Debenture endorsed and accompanied by such
instruments and notices as shall be required pursuant to the provisions of the
Indenture. Upon receipt of the foregoing items, the Equity Contract Agent shall
surrender such Corresponding Commonly Registered Debenture and any accompanying
instruments and notices for exchange in accordance with the provisions of the
Indenture for Commonly Registered Debentures in the same principal amounts as
the respective aggregate purchase obligations of the Corresponding Commonly
Registered Equity Contracts to be issued upon such exchange. Upon receipt by the
Equity Contract Agent of the Commonly Registered Debentures issued upon such
exchange, the Corporation shall execute, and the Equity Contract Agent shall
countersign, the Commonly Registered Equity Contracts which the Obligor is
entitled to receive, and the Equity Contract Agent shall deliver to the Obligor
such Commonly Registered Equity Contracts and such Commonly Registered
Debentures.

                  (c) In order to exchange a Commonly Registered Equity Contract
for a Collateralized Equity Contract representing an equal aggregate purchase
obligation for Shares, the Obligor thereunder shall complete and execute the
form of Collateral Agreement on the reverse of such Commonly Registered Equity
Contract (or separate written collateral agreement satisfactory to the
Corporation) in the manner contemplated thereby, and shall surrender such
Commonly Registered Equity Contract to the Equity Contract Agent together with
(i) the Corresponding Commonly Registered Debenture endorsed and accompanied by
such instruments and notices as shall be required pursuant to the provisions of
the Indenture and (ii) the Collateral referred to in such Collateral Agreement
which shall be of the kind and value required by Article VII hereof. Upon
receipt of the foregoing items, the Equity Contract Agent shall surrender such
Corresponding Commonly Registered Debenture and any accompanying instruments and
notices for exchange in accordance with the provisions of the Indenture for an
Unrestricted Debenture in a principal amount equal to the aggregate purchase
obligation of the Collateralized Equity Contract to be issued upon such
exchange, the Corporation shall execute, and the Equity Contract Agent shall
countersign, the Collateralized Equity Contract which the Obligor is entitled to
receive, and the Equity Contract Agent shall deliver to the Obligor such
Collateralized Equity Contract and such Unrestricted Debenture. No exchange of a
Commonly Registered Equity Contract for a Collateralized Equity Contract may be
made after the Corporation shall

                                       15
<PAGE>

have mailed to the Obligors under Equity Contracts a Cancellation Notice in
compliance with Section 4.02 hereof.

                  (d) In order to exchange a Commonly Registered Equity Contract
for a Commonly Registered Equity Contract and a Collateralized Equity Contract
representing an equal aggregate purchase obligation for Shares, the Obligor
thereunder shall complete and execute the form of Collateral Agreement on the
reverse of such Commonly Registered Equity Contract (or separate written
collateral agreement satisfactory to the Corporation) in the manner contemplated
thereby, and shall surrender such Commonly Registered Equity Contract to the
Equity Contract Agent together with (i) the Corresponding Commonly Registered
Debenture endorsed and accompanied by such instruments and notices as shall be
required pursuant to the provisions of the Indenture and (ii) the Collateral
referred to in such Collateral Agreement which shall be of the kind and value
required by Article VII hereof. Upon receipt of the foregoing items, the Equity
Contract Agent shall surrender such Corresponding Commonly Registered Debenture
and any accompanying instruments and notices for exchange in accordance with the
provisions of the Indenture for an Unrestricted Debenture in a principal amount
equal to the aggregate purchase obligation of the Collateralized Equity Contract
to be issued upon such exchange and a Commonly Registered Debenture in a
principal amount equal to the aggregate purchase obligation of the Corresponding
Commonly Registered Equity Contract to be issued upon such exchange. Upon
receipt by the Equity Contract Agent of the Unrestricted Debenture and the
Commonly Registered Debenture issued upon such exchange, the Corporation shall
execute, and the Equity Contract Agent shall countersign, the Collateralized
Equity Contract and the Commonly Registered Equity Contract which the Obligor is
entitled to receive, and the Equity Contract Agent shall deliver to the Obligor
such Collateralized Equity Contract, Commonly Registered Equity Contract,
Unrestricted Debenture and Commonly Registered Debenture. No exchange of a
Commonly Registered Equity Contract for a Commonly Registered Equity Contract
and a Collateralized Equity Contract representing an equal aggregate purchase
obligation for Shares may be made after the Corporation shall have mailed to the
Obligors under Equity Contracts a Cancellation Notice in compliance with Section
4.02 hereof.

                  (e) In order to exchange a Collateralized Equity Contract for
Collateralized Equity Contracts representing an equal aggregate purchase
obligation for Shares, the Obligor thereunder shall surrender such
Collateralized Equity Contract to the Equity Contract Agent. Upon receipt by the
Equity Contract Agent of such Collateralized Equity Contract, the Corporation
shall execute, and the Equity Contract Agent shall countersign, the
Collateralized Equity Contracts which the Obligor is entitled to receive, and
the Equity Contract Agent shall deliver to the Obligor such Collateralized
Equity Contracts.

                  (f) In order to exchange a Collateralized Equity Contract for
a Commonly Registered Equity Contract representing an equal aggregate purchase
obligation for Shares, the Obligor thereunder shall complete and execute the
form of Acceptance on the reverse of such Collateralized Equity Contract (or
separate written acceptance agreement satisfactory to the Corporation) in the
manner contemplated thereby, and shall surrender such Collateralized Equity
Contract to the Equity Contract Agent together with one or more Unrestricted
Debentures in an aggregate principal amount equal to the aggregate purchase
obligation for Shares under the Collateralized Equity Contract so surrendered,
endorsed and accompanied by such instruments

                                       16
<PAGE>

and notices as shall be required pursuant to the provisions of the Indenture.
Upon receipt of the foregoing items, the Equity Contract Agent shall surrender
such Unrestricted Debentures and any accompanying instruments and notices for
exchange in accordance with the provisions of the Indenture for a Commonly
Registered Debenture in a principal amount equal to the aggregate purchase
obligation of the Corresponding Commonly Registered Equity Contract to be issued
upon such exchange. Upon receipt by the Equity Contract Agent of the Commonly
Registered Debenture issued upon such exchange, the Corporation shall execute,
and the Equity Contract Agent shall countersign, the Commonly Registered Equity
Contract which the Obligor is entitled to receive, and the Equity Contract Agent
shall deliver to the Obligor such Commonly Registered Equity Contract and such
Commonly Registered Debenture and, in the manner and to the extent provided in
Section 7.06, the Collateral held as collateral security for the Collateralized
Equity Contract surrendered to the Equity Contract Agent for exchange

                  (g) In order to exchange a Collateralized Equity Contract for
a Commonly Registered Equity Contract and a Collateralized Equity Contract
representing an equal aggregate purchase obligation for Shares, the Obligor
thereunder shall complete and execute the form of Acceptance on the reverse of
such Collateralized Equity Contract (or separate written acceptance agreement
satisfactory to the Corporation) in the manner contemplated thereby, and shall
surrender such Collateralized Equity Contract to the Equity Contract Agent
together with one or more Unrestricted Debentures in an aggregate principal
amount equal to the aggregate purchase obligation for Shares in respect of which
the Collateralized Equity Contract so surrendered is to be exchanged for a
Commonly Registered Equity Contract, endorsed and accompanied by such
instruments and notices as shall be required pursuant to the provisions of the
Indenture. Upon receipt of the foregoing items, the Equity Contract Agent shall
surrender such Unrestricted Debentures and any accompanying instruments and
notices for exchange in accordance with the provisions of the Indenture for a
Commonly Registered Debenture in a principal amount equal to the aggregate
purchase obligation of the Corresponding Commonly Registered Equity Contract to
be issued upon such exchange and an Unrestricted Debenture in a principal amount
equal to the balance of the aggregate purchase obligation in respect of which
the Collateralized Equity Contract is not to be exchanged for a Commonly
Registered Equity Contract. Upon receipt by the Equity Contract Agent of the
Commonly Registered Debenture and the Unrestricted Debenture issued upon such
exchange, the Corporation shall execute, and the Equity Contract Agent shall
countersign, the Commonly Registered Equity Contract and the Collateralized
Equity Contract which the Obligor is entitled to receive, and the Equity
Contract Agent shall deliver to the Obligor such Commonly Registered Equity
Contract, Commonly Registered Debenture, Collateralized Equity Contract and
Unrestricted Debenture and, in the manner and to the extent provided in Section
7.06, a portion of the Collateral held as collateral security for the
Collateralized Equity Contract surrendered to the Equity Contract Agent for
exchange.

         Section 6.03. Mutilated or Missing Equity Contracts. In case any of the
Equity Contracts shall be mutilated, lost, stolen or destroyed, the Corporation
may in its discretion issue, and the Equity Contract Agent may countersign, in
exchange and substitution for and upon cancellation of the mutilated Commonly
Registered Equity Contract or Collateralized Equity Contract or in lieu of and
substitution for the Commonly Registered Equity Contract or Collateralized
Equity Contract so mutilated, lost, stolen or destroyed, a new Commonly
Registered Equity Contract or Collateralized Equity Contract, as the case may
be, representing

                                       17
<PAGE>

the same aggregate purchase obligation. Such new Equity Contracts will be issued
only upon surrender of such mutilated Equity Contract to the Equity Contract
Agent or receipt of evidence satisfactory to the Corporation and the Equity
Contract Agent of such loss, theft or destruction of such Equity Contract and
provision for indemnity, if requested, also satisfactory to them. Applicants for
such substitute Equity Contracts shall also comply with such other reasonable
regulations and pay such other reasonable charges as the Corporation or the
Equity Contract Agent may prescribe.

         Section 6.04. Temporary Equity Contracts. Pending the preparation of
definitive Equity Contracts, the Corporation may execute, and the Equity
Contract Agent shall countersign and deliver, temporary Equity Contracts
(printed or lithographed). Temporary Equity Contracts shall represent any
authorized aggregate purchase obligation, and shall be substantially in the
respective forms of the definitive Equity Contracts but with such omissions,
insertions and variations as may be appropriate for temporary Equity Contracts,
all as may be determined by the Corporation. Every such temporary Equity
Contract shall be countersigned by the Equity Contract Agent upon the same
conditions and in substantially the same manner, and with the same effect, as
the definitive respective forms of Equity Contracts. Without unreasonable delay
the Corporation will execute and deliver to the Equity Contract Agent definitive
respective forms of Equity Contracts and thereupon any or all temporary Equity
Contracts may be surrendered in exchange therefor at the office of the Equity
Contract Agent specified in Section 9.03. The Equity Contract Agent shall
countersign and deliver in exchange for such temporary Commonly Registered
Equity Contracts or Collateralized Equity Contracts definitive Commonly
Registered Equity Contracts or Collateralized Equity Contracts, as the case may
be, representing the same aggregate purchase obligations. Such exchange shall be
made by the Corporation at its own expense and without any charge therefor.
Until so exchanged, the temporary Commonly Registered Equity Contract or
Collateralized Equity Contracts, as the case may be, shall in all respects be
entitled to the same benefits and be subject to the same obligations under this
Agreement as definitive Commonly Registered Equity Contracts or Collateralized
Equity Contracts, as the case may be, countersigned and delivered hereunder.

         Section 6.05. Delivery of Commonly Registered Debentures. The Equity
Contract Agent shall deliver Commonly Registered Debentures in accordance with
the provisions of this Agreement and the Indenture. Upon receipt by the Equity
Contract Agent from the Trustee or its agent or the Corporation of a Commonly
Registered Debenture for delivery hereunder or in accordance with the provisions
of the Indenture, the Equity Contract Agent shall, prior to such delivery, place
on such Commonly Registered Debenture the letter and number of the Corresponding
Commonly Registered Equity Contract.

         Section 6.06. Countersignature. The Equity Contract Agent is hereby
authorized to countersign new Equity Contracts required to be delivered pursuant
to the provisions of this Agreement, but not otherwise.

         Section 6.07. Charges and Taxes. No service charge shall be made for
any registration of transfer or exchange of Equity Contracts, but the
Corporation may require payment of a sum sufficient to cover any stamp or other
tax or other government charge that may be imposed in connection with any such
registration of transfer or exchange.

                                       18
<PAGE>

         Section 6.08. Registered Obligors. The Corporation and the Equity
Contract Agent may treat the Obligor under each Equity Contract as the absolute
owner thereof and Obligor thereunder for all purposes (notwithstanding any
notation of ownership or other writing thereon made by anyone), and neither the
Corporation nor the Equity Contract Agent shall be affected by any notice to the
contrary.

                                   ARTICLE VII

                                   COLLATERAL

         Section 7.01. Collateral; Valuation Thereof. All collateral securing
the obligations of an Obligor under a Collateralized Equity Contract
("Collateral") pledged to the Equity Contract Agent shall be held by the Equity
Contract Agent separately from its general funds in accordance with the
applicable provisions of the Uniform Commercial Code of the State of Indiana (or
any successor or similar statute at the time in effect). Collateral under a
Collateralized Equity Contract must consist of one or more of the following
items having an aggregate value, determined as set forth below, at least equal
to the aggregate purchase obligation for Shares covered by such Collateralized
Equity Contract: (i) cash in lawful money of the United States of America paid
to the Equity Contract Agent by bank wire transfer in immediately available
funds or certificates of deposit; (ii) standby letters of credit issued by an
insured bank that is not an affiliate of the Corporation; or (iii) debt
obligations issued or guaranteed by the United States of America or an agency
thereof, for the payment of which the full faith and credit of the United States
of America is pledged, maturing on or before the Purchase Date, and, if in book
entry form, registered in the name of the Equity Contract Agent, as custodian
for the Obligor and as pledgee under the related collateral agreement ("Eligible
Government Obligations"), which shall be valued at the unpaid principal amount
thereof. Any designation by the Corporation of obligations as acceptable
Collateral may also specify persons or classes of persons eligible to pledge
such Collateral. All Collateral (including any Collateral substituted for other
Collateral) delivered to the Equity Contract Agent shall be endorsed in blank or
accompanied by appropriate instruments of transfer, satisfactory to the
Corporation and the Equity Contract Agent, signed in blank with signatures
guaranteed, unless such Collateral consists of obligations in bearer form not
registered as to principal or interest. Any Obligor or transferee who shall
pledge any Collateral to the Equity Contract Agent as provided herein shall
execute and deliver such instruments and, if requested by the Corporation, take
all such other action as may be necessary to cause all payments of principal of
and interest on the Collateral to be paid to the Equity Contract Agent.
Collateral held hereunder may be registered in the name of the Equity Contract
Agent, the Corporation or the nominee of either. Unless otherwise expressly
provided herein, all Collateral shall be valued as provided in this Section 7.01
for all purposes of this Agreement. The Equity Contract Agent shall maintain a
register setting forth the name of each Obligor furnishing Collateral and the
Collateral so furnished or furnished in substitution therefor pursuant to
Section 7.05.

         Section 7.02. Interest on Collateral. Except upon any default by an
Obligor of his obligation to furnish additional Collateral pursuant to Section
7.03 hereof or to purchase the

                                       19
<PAGE>

Shares covered by any of such Obligor's Collateralized Equity Contracts on the
Purchase Date, the Obligor shall be entitled to any interest paid on the
Collateral and any such interest received by the Equity Contract Agent shall be
paid over to such Obligor; provided, however, that, subject to the provisions of
Section 7.05, in the case of Collateral consisting of any obligation originally
issued at a price below the principal amount thereof at stated maturity and not
bearing stated interest except upon default in the payment of principal thereof
or after acceleration, any amounts received by the Equity Contract Agent in
excess of the discounted original issue price thereof or any amounts received by
the Equity Contract Agent in respect of interest on overdue principal accruing
only after default in the payment of principal thereof or after acceleration
shall not be paid over to such Obligor but shall be retained by the Equity
Contract Agent in cash subject to the security interest and pledge granted in
the Collateral Agreement to the Equity Contract Agent on behalf of the
Corporation; and provided further that, in the case of Collateral consisting of
any obligation, if the aggregate amount of payments of principal thereof upon
any acceleration or at stated maturity received by the Equity Contract Agent
shall be less than the value thereof (determined as provided in Section 7.01),
then any interest on such obligation received by the Equity Contract Agent after
such acceleration or after the stated maturity thereof shall not be paid over to
such Obligor but shall be retained by the Equity Contract Agent in cash subject
to the security interest and pledge granted in the Collateral Agreement to the
Equity Contract Agent on behalf of the Corporation.

         Section 7.03. Principal Payments on Collateral. On the date of maturity
of any Collateral (whether at stated maturity, upon acceleration, redemption or
otherwise), the Equity Contract Agent shall retain all proceeds received thereon
in cash subject to the security interest and pledge granted in the Collateral
Agreement to the Equity Contract Agent on behalf of the Corporation (other than
payments of interest which the Equity Contract Agent is obligated to pay over to
an Obligor to the extent provided in Section 7.02). In the case of Collateral
consisting of any obligation, if the aggregate amount of payments of principal
thereof (whether upon maturity, acceleration, redemption or otherwise) received
by the Equity Contract Agent shall be less than the value thereof (determined as
provided in Section 7.01), the Equity Contract Agent shall notify the Obligor of
such deficiency and the Obligor shall furnish additional Collateral having a
value equal to such deficiency.

         Section 7.04. No Obligation to Invest. Except as provided in Section
7.05, the Equity Contract Agent shall not be obligated to invest any cash
Collateral pledged to or held by it or any cash proceeds of any Collateral, and
shall have no liability or responsibility for any loss or diminution of value
whatsoever in connection with any Collateral or any such cash proceeds.

         Section 7.05. Substitution of Collateral. So long as an Obligor is not
in default in respect of his obligation to furnish additional Collateral
pursuant to Section 7.03 hereof or to purchase the Shares covered by any of such
Obligor's Collateralized Equity Contracts on the Purchase Date, such Obligor may
obtain release of his Collateral (including the cash proceeds of such
Collateral) from the security interest and pledge granted in the Collateral
Agreement to the Equity Contract Agent on behalf of the Corporation by
delivering to the Equity Contract Agent in substitution therefor Collateral of
the kind and value required by Section 7.01 equal to the value (as so
determined) of the Collateral (including the amount of any cash proceeds
thereof) to be released. Upon receipt of such substitute Collateral, the Equity
Contract Agent shall make a

                                       20
<PAGE>

notation of each substitution on the Collateral Agreement pursuant to which the
collateral to be released was pledged and shall return the Collateral (including
any cash proceeds thereof) released as a result of such substitution. No service
charge will be made by the Equity Contract Agent for any substitution of
Collateral. So long as an Obligor is not in default in respect of his obligation
to furnish additional Collateral pursuant to Section 7.03 hereof or to purchase
the Shares covered by any such Obligor's Collateralized Equity Contracts on the
Purchase Date, the amount of any cash at any time included in this Collateral
resulting from payment at maturity of any Eligible Government Obligations,
shall, pursuant to written instructions received by the Equity Contract Agent
from such Obligor accompanied by reasonable transaction fees and other expenses
as determined by the Equity Contract Agent, be invested, to the extent
reasonably practicable, by the Equity Contract Agent in one or more other
Eligible Government Obligations, as specified by such Obligor in said
instructions. Notwithstanding the provisions of Section 7.02, in the event any
such cash shall be so invested, after the Equity Contract Agent shall have
purchased such obligations for such Obligor, the Equity Contract Agent promptly
shall remit to the Obligor any excess cash Collateral held by the Equity
Contract Agent as collateral security for such Obligor's Collateralized Equity
Contracts.

         Section 7.06. Release of Collateral Upon Exchange, Transfer, Payment,
Cancellation.

                  (a) Upon the due exchange of a Collateralized Equity Contract,
in respect of all or any portion of the unpaid aggregate purchase obligation
thereunder, for a Commonly Registered Equity Contract, the Equity Contract Agent
shall promptly deliver to the Obligor under such Collateralized Equity Contract
all Collateral (including any cash proceeds thereof) then held by the Equity
Contract Agent as collateral security for such Collateralized Equity Contract;
provided that, notwithstanding the foregoing, the Equity Contract Agent shall
retain such Collateral (including any cash proceeds thereof) then so held as
shall have a value equal to the difference between any unpaid aggregate purchase
obligation under all Collateralized Equity Contracts registered in the name of
such Obligor and the value of Collateral held as collateral security for such
Collateralized Equity Contracts.

                  (b) Upon the due registration of transfer of a Collateralized
Equity Contract or any portion thereof, and upon pledge of Collateral in
compliance with Section 7.01 by the subsequent transferee thereof, the Equity
Contract Agent shall promptly deliver to the transferor Obligor under such
Collateralized Equity Contract all Collateral (including any cash proceeds
thereof) then held by the Equity Contract Agent as collateral security for such
Collateralized Equity Contract; provided that, notwithstanding the foregoing,
the Equity Contract Agent shall retain such Collateral (including any cash
proceeds thereof) then so held as shall have a value equal to the difference
between any unpaid aggregate purchase obligation under all Collateralized Equity
Contracts registered in the name of such Obligor and the value of Collateral
held as collateral security for such Collateralized Equity Contracts.

                  (c) In the event that an Obligor under a Collateralized Equity
Contract shall purchase all or a portion of the Shares covered thereby pursuant
to such Collateralized Equity Contract, the Equity Contract Agent shall promptly
deliver to the Obligor under such Collateralized Equity Contract all Collateral
(including any cash proceeds thereof) then held by the Equity Contract Agent as
collateral security for such Collateralized Equity Contract;

                                       21
<PAGE>

provided that, notwithstanding the foregoing, the Equity Contract Agent shall
retain such Collateral (including any cash proceeds thereof) then so held as
shall have a value equal to the difference between any remaining unpaid
aggregate purchase obligation under all Collateralized Equity Contracts
registered in the name of such Obligor and the value of Collateral held as
collateral security for such Collateralized Equity Contracts.

                  (d) In the event that the Collateralized Equity Contracts
shall cancel pursuant to Section 2.06, the Equity Contract Agent shall promptly
deliver to the respective Obligors under the Collateralized Equity Contracts all
Collateral (including any cash proceeds thereof) then held by the Equity
Contract Agent as collateral security for their respective Collateralized Equity
Contracts.

                  (e) Upon each delivery by the Equity Contract Agent to an
Obligor or transferor Obligor under a Collateralized Equity Contract of
Collateral (and any cash proceeds thereof) as provided in this Section 7.06, the
Collateral (including such cash proceeds) so delivered shall be released from
the pledge and security interest granted in the Collateral Agreement to the
Equity Contract Agent on behalf of the Corporation to secure such Collateralized
Equity Contract.

                  (f) In connection with the partial release of any Collateral
under Section 7.05 and this Section 7.06, the Equity Contract Agent shall be
obligated to deliver to the Obligor under a Collateralized Equity Contract only
such Collateral as shall be susceptible to such delivery under the terms of any
obligation held as Collateral, or law or regulation pertaining thereto. If any
Collateral is not susceptible to delivery, the Equity Contract Agent shall take
such action, consistent with the purposes of this Agreement, as shall be
requested in writing by such Obligor to cause the Collateral to be put in such
form or liquidated so as to permit delivery thereof to the Obligor.

         Section 7.07. Default by Obligor. In the event of a default by any
Obligor in the performance of his obligation to purchase and pay for Shares on
the Purchase Date, the Equity Contract Agent on behalf of the Corporation shall
have, in addition to any other rights provided by law or contract, all the
rights of a secured creditor with respect to the Collateral provided in the
Uniform Commercial Code of the State of Indiana (or in any successor or similar
statute at the time in effect) and may, subject to any requirements of
applicable bankruptcy or other laws, sell such Collateral in any way permitted
under applicable law. Any net proceeds realized by the Equity Contract Agent in
exercising any remedy hereunder and any amounts received by the Equity Contract
Agent upon the maturity of any Collateral following such default, after
deducting the reasonable expenses of such realization (including reasonable
attorneys' fees) and of the collection of such amount shall be applied to the
payment of the purchase price of the Shares which the defaulting Obligor shall
be obligated to purchase, and any excess shall be paid to or upon the order of
the Obligor. Promptly after receipt in full of such purchase price, the Equity
Contract Agent shall transmit a certificate for the number of such Shares for
which payment has been so made to such Obligor. The defaulting Obligor shall
remain liable to pay the Equity Contract Agent, upon demand, an amount equal to
the excess, if any, of his aggregate purchase obligation and the realization
expenses of the Equity Contract Agent over the net proceeds of such Collateral.

                                       22
<PAGE>

                                  ARTICLE VIII

                      CONCERNING THE EQUITY CONTRACT AGENT

         Section 8.01. The Equity Contract Agent. The Corporation hereby
appoints First Bank, Greenwood, Indiana, as Equity Contract Agent of the
Corporation in respect to the Equity Contracts upon the terms and subject to the
conditions herein set forth; and First Bank, Greenwood, Indiana, hereby accepts
such appointment and shall perform its duties hereunder in accordance with
instructions from the Corporation given in accordance herewith. The Equity
Contract Agent shall have the powers and authority granted to and conferred upon
it in the Equity Contracts and hereby and such further powers and authority to
act on behalf of the Corporation as the Corporation may hereafter grant to or
confer upon it. All of the terms and provisions with respect to such powers and
authority contained in the Equity Contracts are subject to and governed by the
terms and provisions hereof. The Equity Contract Agent may act as an
Authenticating Agent under the Indenture.

         Section 8.02. Conditions of Obligations. The Equity Contract Agent
accepts its obligations herein set forth upon the terms and conditions hereof,
including the following, to all of which the Corporation agrees and to all of
which the rights hereunder of the Obligors from time to time under the Equity
Contracts shall be subject:

                  (a) The Corporation agrees promptly to pay to the Equity
Contract Agent the compensation to be agreed upon with the Corporation for all
services rendered by the Equity Contract Agent and to reimburse the Equity
Contract Agent for reasonable out-of-pocket expenses (including counsel fees)
incurred by the Equity Contract Agent in connection with the services rendered
hereunder by it. The Corporation also agrees to indemnify the Equity Contract
Agent for, and to hold it harmless against, any loss, liability or expense,
incurred without negligence or bad faith on the part of the Equity Contract
Agent, arising out of or in connection with its acting as Equity Contract Agent
hereunder, as well as the costs and expenses of defending against any claim of
liability in the premises.

                  (b) In acting under this Agreement and in connection with the
Equity Contracts, the Equity Contract Agent is acting solely as agent of the
Corporation and does not assume any obligation or relationship of agency or
trust for or with any of the Obligors under the Equity Contracts, except as
provided in Section 7.05 or 7.06 or to the extent that the Equity Contract Agent
shall hold certificates for Shares delivered to it for the account of any
Obligor.

                  (c) The Equity Contract Agent may consult with counsel
satisfactory to it (who may be counsel to the Corporation), and the opinion of
such counsel shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in
accordance with the opinion of such counsel.

                  (d) The Equity Contract Agent shall be protected and shall
incur no liability for or in respect of any action taken or thing suffered by it
in reliance upon any Equity Contract,

                                       23
<PAGE>

notice, direction, consent, certificate, affidavit, statement or other paper or
document reasonably believed by it to be genuine and to have been presented or
signed by the proper parties.

                  (e) The Equity Contract Agent, and its officers, directors and
employees, may become the owners of, or acquire any interest in, Equity
Contracts, with the same rights that it or they would have if it were not the
Equity Contract Agent hereunder, and, to the extent permitted by applicable law,
it or they may engage or be interested in any financial or other transaction
with the Corporation and may act on, or as depositary, trustee or agent for, any
committee or body of holders of any obligations of the Corporation as freely as
if it were not the Equity Contract Agent hereunder.

                  (f) The Equity Contract Agent shall not be under any liability
for interest on any monies at any time received or held by it pursuant to any of
the provisions of this Agreement or of the Equity Contracts.

                  (g) The Equity Contract Agent shall not incur any liability
with respect to the validity of this Agreement or any of the Equity Contracts.

                  (h) The Equity Contract Agent shall not be responsible for any
of the recitals or representations, herein or in the Equity Contracts contained
(except as to the Equity Contract Agent's countersignature thereon), all of
which are made solely by the Corporation.

                  (i) The Equity Contract Agent shall be obligated to perform
only such duties as are herein or in the Equity Contracts specifically set
forth, and no implied duties or obligations shall be read into this Agreement or
the Equity Contracts against the Equity Contract Agent. The Equity Contract
Agent shall not be under any obligation to take any action hereunder which may
tend to involve it in any expense or liability, the payment of which within a
reasonable time is not, in its reasonable opinion, assured to it. The Equity
Contract Agent shall not be accountable or under any duty or responsibility for
the use by the Corporation of any of the Equity Contracts countersigned by the
Equity Contract Agent and delivered by it pursuant to this Agreement. The Equity
Contract Agent shall have no duty or responsibility in case of any default by
the Corporation in the performance of its covenants or agreements contained in
the Equity Contracts or in the case of the receipt of any written demand from an
Obligor under any of the Equity Contracts with respect to such default,
including, without limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceedings at law or
otherwise or to make any demand upon the Corporation.

                  (j) The Equity Contract Agent may execute any of its powers
hereunder or perform any of its duties hereunder either directly or by or
through agents or attorneys, and the Equity Contract Agent shall not be
responsible for any misconduct or negligence on the part of any agent or
attorney appointed by it with due care hereunder.

                                       24
<PAGE>

         Section 8.03. Resignation and Appointment of Successor.

                  (a) The Corporation agrees, for the benefit of the Obligors
from time to time under the Equity Contracts, that there shall at all times be
an Equity Contract Agent hereunder so long as the Obligors are obligated or
permitted to purchase the Shares.

                  (b) The Equity Contract Agent may at any time resign as such
agent by giving written notice to the Corporation of such intention on its part,
specifying the date on which its desired resignation shall become effective;
provided that such date shall not be less than three (3) months after the date
on which such notice is given unless the Corporation agrees to accept less
notice. The Equity Contract Agent hereunder may be removed at any time by the
filing with it of an instrument in writing signed by or on behalf of the
Corporation and specifying such removal and the date when it shall become
effective. Such resignation or removal shall take effect upon the appointment by
the Corporation, as hereinafter provided, of a successor Equity Contract Agent
(which shall be a bank or trust company authorized under the laws of the
jurisdiction of its organization to exercise corporate trust powers) and the
acceptance of such appointment by such successor Equity Contract Agent. The
obligation of the Corporation under Section 8.02(a) shall continue to the extent
set forth therein notwithstanding the resignation or removal of the Equity
Contract Agent.

                  (c) In case at any time the Equity Contract Agent shall
resign, or shall be removed, or shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or shall file a petition seeking relief under
Title 11 of the United States Code, as now constituted or hereafter amended, or
under any other applicable Federal or state bankruptcy law or similar law or
make an assignment for the benefit of its creditors or consent to the
appointment of a receiver or custodian of all or any substantial part of its
property, or shall admit in writing its inability to pay or meet its debts as
they mature, or if a receiver or custodian of it or of all or any substantial
part of its property shall be appointed, or if an order of any court shall be
entered for relief against it under the provisions of Title 11 of the United
States Code, as now constituted or hereafter amended, or under any other
applicable Federal or state bankruptcy or similar law, or if any public officer
shall have taken charge or control of the Equity Contract Agent or of its
property or affairs, for the purpose of rehabilitation, conservation or
liquidation, a successor Equity Contract Agent, qualified as aforesaid, shall be
appointed by the Corporation by an instrument in writing, filed with both the
Equity Contract Agent to be replaced and the successor Equity Contract Agent.
Upon the appointment as aforesaid of a successor Equity Contract Agent and
acceptance by the latter of such appointment, the Equity Contract Agent so
superseded shall cease to be Equity Contract Agent hereunder.

                  (d) Any successor Equity Contract Agent appointed hereunder
shall execute, acknowledge and deliver to its predecessor and to the Corporation
an instrument accepting such appointment hereunder, and thereupon such successor
Equity Contract Agent, without any further act, deed or conveyance, shall become
vested with all the authority, rights, powers, trusts, immunities, duties and
obligations of such predecessor with like effect as if originally named as
Equity Contract Agent hereunder, and such predecessor, upon payment of its
charges and disbursements then unpaid, shall thereupon become obligated to
transfer, deliver and pay over, and such successor Equity Contract Agent shall
be entitled to receive, subject to the provisions of

                                       25
<PAGE>

this Agreement, all monies, securities and other property on deposit with or
held by such predecessor as Equity Contract Agent.

                  (e) Any corporation into which the Equity Contract Agent
hereunder may be merged or converted or any corporation with which the Equity
Contract Agent may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Equity Contract Agent shall be
a party, or any corporation to which the Equity Contract Agent shall sell or
otherwise transfer all or substantially all the assets and business of the
Equity Contract Agent shall be the successor Equity Contract Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

                  (f) The Equity Contract Agent and any successor Equity
Contract Agent shall at all times maintain an office in the City of Greenwood,
Indiana.

         Section 8.04. Payment of Taxes. The Corporation will pay all stamp and
other duties, if any, to which, under the laws of the United States of America,
this Agreement or the original issuance of the Equity Contracts may be subject.

                                   ARTICLE IX

                                  MISCELLANEOUS

         Section 9.01. Amendment. This Agreement may be amended by the parties
hereto, without the consent of any Obligor under any Equity Contract, for the
purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective provision contained herein, or in regard to matters or questions
arising under this Agreement as the Corporation and the Equity Contract Agent
may deem necessary or desirable, provided that such action shall not adversely
affect the interests of the Obligors under the Equity Contracts.

         Section 9.02. Notices and Demands. If the Equity Contract Agent shall
receive any notice or demand addressed to the Corporation by any Obligor under
an Equity Contract pursuant to the provisions of the Equity Contracts, the
Equity Contract Agent shall promptly forward such notice or demand to the
Corporation.

         Section 9.03. Addresses. Any communications from the Corporation to the
Equity Contract Agent with respect to this Agreement shall be addressed to First
Bank, 996 South State Road 135, Greenwood, Indiana 46143, and any communications
from the Equity Contract Agent to the Corporation with respect to this Agreement
shall be addressed to First Shares Bancorp, Inc., 996 South State Road 135,
Greenwood, Indiana 46143 (or such other address as shall be specified in writing
by the Equity Contract Agent or by the Corporation).

         Section 9.04. Applicable Law. The validity, interpretation and
performance of this Agreement and each Equity Contract issued hereunder and of
the respective terms and provisions hereof and thereof shall be governed by the
substantive laws of the State of Indiana.

                                       26
<PAGE>

         Section 9.05. Obtaining of Governmental Approvals. The Corporation will
from time to time take all action which may be necessary to obtain and keep
effective any and all permits, consents and approvals of governmental agencies
and authorities and securities acts filings under United States Federal and
state laws, which may be or become requisite in connection with the issuance,
transfer and delivery of the Equity Contracts and the issuance, sale, transfer
and delivery of the Shares.

         Section 9.06. Authorized Shares. The Corporation shall at all times
have authorized and reserved for issuance, free from preemptive rights, a number
of Shares sufficient to permit the purchase in full of all Shares covered by
outstanding Equity Contracts and will make available to the Equity Contract
Agent a sufficient number of certificates therefor. The Corporation covenants
that all Shares issued pursuant to and in accordance with the provisions of the
Equity Contracts and this Agreement will, when issued, be fully paid and
non-assessable by the Corporation.

         Section 9.07. Persons Having Rights Under Agreement. Nothing in this
Agreement expressed or implied and nothing that may be inferred from any of the
provisions hereof is intended, or shall be construed, to confer upon, or give
to, any person or corporation other than the Corporation, the Equity Contract
Agent and the Obligors under the Equity Contracts any right, remedy or claim
under or by reason of this Agreement or of any covenant, condition, stipulation,
promise or agreement hereof; and all covenants, conditions, stipulations,
promises and agreements in this Agreement shall be for the sole and exclusive
benefit of the Corporation and the Equity Contract Agent and their successors
and of the Obligors under the Equity Contracts.

         Section 9.08. Successor Corporation to be Substituted. In case of any
consolidation, merger or conveyance pursuant to Section 3.01 hereof, any such
successor to the Corporation hereunder may cause to be signed, and may issue
either in its own name or in the name of First Shares Bancorp, Inc. any or all
of the Equity Contracts issuable hereunder which theretofore shall not have been
signed by the Corporation and delivered to the Equity Contract Agent; and, upon
the order of such successor corporation instead of the Corporation and subject
to all the terms, conditions and limitations in this Agreement prescribed, the
Equity Contract Agent shall countersign and shall deliver any Equity Contracts
which previously shall have been signed and delivered by the officers of the
Corporation to the Equity Contract Agent for countersignature, and any Equity
Contracts which such successor corporation thereafter shall cause to be signed
and delivered to the Equity Contract Agent for that purpose. All the Equity
Contracts so issued shall in all respects have the same obligations and rights
under this Agreement as the Equity Contracts theretofore or thereafter issued in
accordance with the terms of this Agreement as though all of such Equity
Contracts had been issued at the date of the execution hereof.

         Section 9.09. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions
hereof.

                                       27
<PAGE>

         Section 9.10. Counterparts. This Agreement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original; but such counterparts shall together constitute but one and the same
instrument.

         Section 9.11. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times at the office of the Equity Contract Agent
specified in Section 9.03 for inspection by the Obligors under the Equity
Contracts. The Equity Contract Agent may require any such Obligor to submit its
Equity Contract for inspection by it.

                                       28
<PAGE>

         IN WITNESS WHEREOF, FIRST SHARES BANCORP, INC. has caused this
Agreement to be signed by one of its duly authorized officers, and the same to
be attested by its Secretary or one of its Assistant Secretaries, and FIRST BANK
has caused this Agreement to be signed by one of its duly authorized officers,
and the same to attested by its Secretary or one of its Assistant Secretaries,
all as of the day and year first above written.

                                       FIRST SHARES BANCORP, INC.

                                       By:
                                          --------------------------------------
                                           Jerry R. Engle
                                           President and Chief Executive Officer

Attest:

-------------------------
Kimberly B. Kling
Secretary

                                       FIRST BANK

                                       By:
                                          --------------------------------------
                                           John Ditmars
                                           Executive Vice President

Attest:

---------------------------
Kimberly B. Kling
Secretary

                                       29
<PAGE>

[FACE SIDE]                                                            EXHIBIT A

                  [FORM OF COMMONLY REGISTERED EQUITY CONTRACT]

               THIS COMMONLY REGISTERED EQUITY CONTRACT MAY NOT BE
          SOLD, TRANSFERRED OR ASSIGNED EXCEPT UPON COMPLIANCE WITH THE
          REQUIREMENTS FOR TRANSFER SET FORTH HEREIN AND ON THE REVERSE
         HEREOF, IN THE CORRESPONDING COMMONLY REGISTERED DEBENTURE AND
            INDENTURE DEFINED HEREIN AND IN AN EQUITY CONTRACT AGENCY
      AGREEMENT DATED AS OF ________________, 2002 BETWEEN THE CORPORATION
                      AND FIRST BANK, GREENWOOD, INDIANA.

                    VALID ONLY IF COUNTERSIGNED BY THE EQUITY
                        CONTRACT AGENT AS PROVIDED HEREIN

No. CREC-                                          Aggregate Purchase Obligation

                                                    $
                                                     ---------------------------

                           FIRST SHARES BANCORP, INC.
                       COMMONLY REGISTERED EQUITY CONTRACT

                   Commonly Registered Equity Contract between
                           First Shares Bancorp, Inc.,
                 an Indiana corporation (the "Corporation"), and

                        or registered assigns, as obligor
                           hereunder (the "Obligor").

         Subject to the conditions hereinafter set forth, the Obligor agrees to
purchase and pay for, and the Corporation agrees to sell, on January 1, 2011
(the "Purchase Date"), that number of shares (the "Shares") of common stock, par
value $0.01 per share, of the Corporation (the "Common Stock") determined by
dividing the aggregate purchase obligation set forth above (the "Aggregate
Purchase Obligation") by a purchase price per Share of $10.00, as adjusted from
time to time upon the occurrence of certain events set forth in the Equity
Contract Agency Agreement.

         The Obligor is the registered holder of a Commonly Registered Debenture
(as defined in the Equity Contract Agency Agreement hereinafter referred to)
which refers by letters and numbers to this Commonly Registered Equity Contract
on the face thereof (the "Corresponding Commonly Registered Debenture") of a
duly authorized issue of the Corporation's 8% Redeemable Subordinated Debentures
Due July 1, 2011 (the "Debentures") issued under an

                                      A-1
<PAGE>

Indenture dated as of ___________, 2002 (the "Indenture") between the
Corporation and The Huntington National Bank, as Trustee, having an aggregate
principal amount equal to the Aggregate Purchase Obligation.

         At any time prior to the Purchase Date, the Obligor, upon surrender of
this Commonly Registered Equity Contract with the form of election to purchase
on the reverse hereof duly completed and signed at the office of First Bank,
Greenwood, Indiana, or its successor as Equity Contract Agent (the "Equity
Contract Agent"), initially at the address specified in such form of election,
may purchase all or a portion of the Shares covered by this Commonly Registered
Equity Contract at a purchase price per Share of $10.00, as adjusted from time
to time upon the occurrence of certain events. The aggregate purchase price of
Shares purchased must be $1,000 or any integral multiple of $1,000 (without
regard to any cash settlement for fractional shares).

                  The purchase price for the Shares purchased pursuant hereto
shall be payable at the office of the Equity Contract Agent (i) in lawful money
of the United States of America, by bank wire transfer to the Equity Contract
Agent in immediately available funds or by certified or official bank check in
New York Clearing House funds payable to or upon the order of the Corporation,
or (ii) subject to Section 2.03(b) of the Equity Contract Agency Agreement, by
surrender of an equal aggregate unpaid principal amount of the Corresponding
Commonly Registered Debentures; provided however, that after the Corporation
shall have mailed to the Obligor hereunder a Cancellation Notice (as hereinafter
provided) the purchase price for the Shares purchased pursuant to this Commonly
Registered Equity Contract shall be payable only by surrender of an equal
aggregate unpaid principal amount of the Corresponding Commonly Registered
Debenture. The Corporation is entitled on or after the Purchase Date to offset
the obligation of the Corporation to pay the principal of the Corresponding
Commonly Registered Debenture (whether or not such Commonly Registered Debenture
has matured), in whole or in part, against the obligation of the Obligor under
this Commonly Registered Equity Contract to pay the unpaid aggregate purchase
price of the Shares covered hereby, in full and complete satisfaction of the
obligation of the Corporation to pay all or such part of the principal of such
Corresponding Commonly Registered Debenture. Upon making such offset, the
Corporation shall deliver certificates for such Shares to the Equity Contract
Agent, which shall hold such certificates for the account of, and deliver the
same to, the registered holder of such Corresponding Commonly Registered
Debenture upon the presentation thereof. The Corporation shall not be obligated
to sell the Shares or deliver any certificates therefor unless it shall have
received payment in full of the aggregate purchase price for the Shares
purchased in the manner herein set forth. Payment of the purchase price for
Shares purchased under this Commonly Registered Equity Contract shall be
accepted and credited by the Corporation only in amounts equal to $1,000 or any
integral multiple of $1,000.

                  Debentures surrendered in full or partial payment of the
aggregate purchase obligation for Shares will be accepted and credited in an
amount equal to the unpaid principal amount thereof; provided that (i)
Debentures will be credited only in amounts equal to $1,000 or any integral
multiple of $1,000, (ii) a Commonly Registered Debenture may be surrendered in
partial or complete satisfaction only of the aggregate purchase obligation under
the Corresponding Commonly Registered Equity Contract and may not be surrendered
in partial or complete satisfaction of the aggregate purchase obligation under
any other Equity Contract, and

                                      A-2
<PAGE>

(iii) Unrestricted Debentures (as defined in the Equity Contract Agency
Agreement) may not be surrendered in partial or complete satisfaction of the
aggregate purchase obligation under any Commonly Registered Equity Contract.

                  The Corporation has the right to redeem the Debentures as
provided in Article Twelve of the Indenture. In the event that the Corporation
should exercise such right, this Commonly Registered Equity Contract, and the
obligations and rights of the Corporation and the Obligor hereunder, shall be
cancelled on the date on which the Debentures are redeemed (the "Cancellation
Date"). Upon such cancellation, the Obligor hereunder shall receive an amount
(the "Cancellation Payment") equal to one percent (1%) of the principal amount
of the purchase obligation under this Commonly Registered Equity Contract;
provided, however, that if the Debentures are redeemed on or after July 1, 2010,
or after the occurrence of an Adverse Tax Determination (as defined in the
Indenture) or an Adverse Capital Determination (as defined in the Indenture), no
Cancellation Payment will be made; and provided, further, that if the Debentures
are redeemed after an Adverse Tax Determination or an Adverse Capital
Determination, holders of Equity Contracts shall have the right to purchase the
Shares purchasable hereunder at a price equal to the lower of (i) ninety-four
percent (94%) of the average "current market price" of the Common Stock, as that
term is defined in Section 3.01(d) of the Equity Contract Agency Agreement, for
the 10 business days prior and 10 business days after the Adverse Tax
Determination or Adverse Capital Determination (but not less than $5.00 per
share subject to adjustment as provided in Section 3.01 of the Equity Contract
Agency Agreement) or (ii) the designated Equity Contract purchase price. In no
event shall a Cancellation Payment be made to the extent Common Stock is
purchased prior to cancellation of this Equity Contract, regardless of the
reason for cancellation. Notice of any such cancellation of this Commonly
Registered Equity Contract (the "Cancellation Notice") shall be given to the
Obligor hereunder by first class mail, postage prepaid, not less than 30 nor
more than 60 days prior to the Cancellation Date. Such Cancellation Notice shall
specify the Cancellation Date, the amount of the Cancellation Payment, if any,
and the place where this Commonly Registered Equity Contract is to be presented
and surrendered. Upon presentation and surrender of this Commonly Registered
Equity Contract at the place provided in the Cancellation Notice, the Obligor
hereunder shall be paid the Cancellation Payment payable with respect hereto, if
any, without interest.

                  This Commonly Registered Equity Contract and the obligations
and rights of the Corporation and the Obligor hereunder shall terminate if, on
or prior to the Purchase Date, certain events of bankruptcy, insolvency or
reorganization with respect to the Corporation specified in the Equity Contract
Agency Agreement hereinafter referred to shall have occurred.

                  This Commonly Registered Equity Contract is issued under and
in accordance with the Equity Contract Agency Agreement dated as of ___________,
2002 (the "Equity Contract Agency Agreement"), between the Corporation and the
Equity Contract Agent and is subject to the terms and provisions contained in
the Equity Contract Agency Agreement, to all of which terms and provisions the
Obligor consents by becoming obligated hereon by the execution of Acceptance on
a Commonly Registered Equity Contract (or separate written acceptance agreement
satisfactory to the Corporation). Copies of the Equity Contract Agency Agreement
are on file at the Office of the Equity Contract Agent. All capitalized terms
used but not defined in

                                      A-3
<PAGE>

this Equity Contract which are defined in the Equity Contract Agency Agreement
have the meanings assigned to them in the Equity Contract Agency Agreement.

                  The Corporation and the Equity Contract Agent may deem and
treat the registered Obligor as the absolute obligor hereunder (notwithstanding
any notation or other writing herein) for all purposes, and neither the
Corporation nor the Equity Contract Agent shall be affected by any notice to the
contrary.

                  This Commonly Registered Equity Contract shall be the
obligation of the registered Obligor and this Commonly Registered Equity
Contract and such obligation cannot be sold, transferred or assigned except upon
compliance with the requirements for transfer set forth in this Commonly
Registered Equity Contract, including those on the reverse hereof, in the
Corresponding Commonly Registered Debenture, in the Indenture and in the Equity
Contract Agency Agreement. Until this Commonly Registered Equity Contract shall
be registered in a name other than the name of the registered holder of such
Corresponding Commonly Registered Debenture, this Commonly Registered Equity
Contract shall continue to be registered in the name of, and to be the
obligation of, the registered holder of such Corresponding Commonly Registered
Debenture.

                  After countersignature by the Equity Contract Agent and prior
to the Purchase Date, this Commonly Registered Equity Contract may, upon
compliance with the provisions of the Equity Contract Agency Agreement, be
exchanged at the office of the Equity Contract Agent for Commonly Registered
Equity Contracts and/or Collateralized Equity Contracts (as defined in the
Equity Contract Agency Agreement) representing the same Aggregate Purchase
Obligation.

                  This Commonly Registered Equity Contract shall not entitle the
Obligor hereunder to any of the rights or privileges of a stockholder of the
Corporation and shall not constitute a subscription for the Shares for any
purpose.

                  This Commonly Registered Equity Contract shall not be valid or
obligatory for any purpose until countersigned by the Equity Contract Agent.

Dated:
       ---------------------------------

                                                FIRST SHARES BANCORP, INC.

                                                By:
                                                    ----------------------------

Attest:

-----------------------------------------
Countersigned:

FIRST BANK,
As Equity Contract Agent

By:
    -----------------------------------------
         Authorized Officer

                                      A-4
<PAGE>

[Reverse Side]

                              ELECTION TO PURCHASE

                   (To be executed by an Obligor who wishes to
                    purchase Shares prior to January 1, 2011)

To the Equity Contract Agent:

         The undersigned Obligor (1) exercises the right to purchase that number
of shares of Common Stock, par value $.01 per share, of First Shares Bancorp,
Inc. which $_______ (must be $1,000 or any integral multiple of $1,000) will
purchase at the Share Price set forth in this Commonly Registered Equity
Contract, and (2) makes payment in full for the number of Shares so purchased by
payment of the amount set forth above:

         (Please check appropriate box.)

         [ ]      in lawful money of the United States of America, by bank wire
                  transfer to the Equity Contract Agent in immediately available
                  funds or by certified or official bank check in New York
                  Clearing House funds payable to or upon the order of the
                  Corporation; or

         [ ]      by surrender herewith of Commonly Registered Debentures.

                  Please issue the certificate for Shares in the name of, and
pay any cash for any fractional share to:

------------------------------------------------------
Print or type name

------------------------------------------------------
Social Security or other identifying number

------------------------------------------------------
Street address

-------------------------------------------------------------------
       City                  State                        Zip Code

Dated:
       --------------------------               --------------------------------
                                                             Signature

                                      A-5
<PAGE>

Shares may be purchased in person or by mail at the following address:

                                   First Bank
                            996 South State Road 135
                            Greenwood, Indiana 46143

                                      A-6
<PAGE>

                                  ASSIGNMENT I

                 (To be executed if Obligor desires to transfer
                 Commonly Registered Equity Contract separately
                from Corresponding Commonly Registered Debenture)

         FOR VALUE RECEIVED, ____________________________ hereby sells, assigns
and transfers unto __________________ the obligation and right represented by
this Commonly Registered Equity Contract to purchase the shares of Common Stock,
par value $.01 per share, of First Shares Bancorp, Inc. to which this Commonly
Registered Equity Contract relates and appoints
_____________________________________________________________ attorney to
transfer such obligation and right on the books of the Equity Contract Agent
with full power of substitution in the premises. Such obligation and right shall
be evidenced by a Collateralized Equity Contract, registered in the name of the
transferee, in the form authorized by the Equity Contract Agency Agreement, to
which reference is hereby made for a statement of the respective rights
thereunder of the Corporation, the Equity Contract Agent and the holder of the
Collateralized Equity Contract. The undersigned hereby acknowledges that this
transfer shall not be registered by the Equity Contract Agent until the
transferee shall have collateralized its obligation under the Collateralized
Equity Contract in the manner provided in the Collateral Agreement below and in
the Equity Contract Agency Agreement referred to herein, and, until such
collateral requirements shall be satisfied, the undersigned shall remain the
registered Obligor under this Commonly Registered Equity Contract.

Dated:
       -----------------------                  --------------------------------
                                                           Signature

Signature Guaranteed:

-----------------------------------------------------

                                      A-7
<PAGE>

                              COLLATERAL AGREEMENT

(To be executed by Obligor if the Corresponding Commonly Registered Debenture is
being transferred separately from this Commonly Registered Equity Contract or if
this Commonly Registered Equity Contract is being exchanged for a Collateralized
Equity Contract, or by the transferee if this Commonly Registered Equity
Contract is being transferred separately from the Corresponding Commonly
Registered Debenture)

         As collateral security for the obligation of the undersigned under the
Collateralized Equity Contract to be issued to the undersigned as the Obligor
thereunder (and under any other Collateralized Equity Contract to be issued in
the name of the undersigned and evidencing all or any part of the same purchase
obligation), the undersigned does hereby pledge to First Bank, as Equity
Contract Agent, and does hereby grant to it a security interest in, all of the
undersigned's right, title and interest in and to the items of Collateral listed
below (and all proceeds thereof and all Collateral from time to time delivered
to the Equity Contract Agent in substitution therefor). The undersigned hereby
assumes and agrees to perform the obligations of the Obligor set forth in said
Collateralized Equity Contract.

         The undersigned does hereby deliver to the Equity Contract Agent such
Collateral (other than book entry United States Treasury securities pledged
herewith which have been registered in the name of the Equity Contract Agent, as
custodian for the undersigned and as pledgee hereunder). Such Collateral shall
be held by such Equity Contract Agent pursuant to, and until released in
accordance with, the term of the Equity Contract Agency Agreement dated as of
___________, 2002 between the Corporation and the Equity Contract Agent. The
undersigned further agrees to be bound, or to continue to be bound, as the case
may be, by all of the terms and conditions set forth in said Collateralized
Equity Contract (and any other Collateralized Equity Contract to be issued in
the name of the undersigned and evidencing all or any part of the same purchase
obligation) and said Equity Contract Agency Agreement. The undersigned
represents and warrants that he owns the Collateral free and clear of all liens,
he has the authority and legal right to pledge such Collateral, and he has
executed and delivered all instruments and, if requested by the Corporation,
will take all such other action as may be necessary to cause all payments of
principal and interest on such Collateral to be paid to the Equity Contract
Agent. The undersigned agrees that upon a default by the undersigned of his
obligation under said Collateralized Equity Contract, (i) the Equity Contract
Agent shall have, in addition to all other rights provided by law or contract,
all the rights of a secured creditor with respect to the Collateral provided in
the Uniform Commercial Code of the State of Indiana, (ii) the Equity Contract
Agent may, subject to any requirements of applicable bankruptcy or other laws,
sell all or a portion of such Collateral, apply the net proceeds, after
deducting the reasonable expenses of such realization and the collection of such
amounts (including attorneys' fees), and any amounts received by it upon the
maturity of any Collateral following such default, to the payment of the
purchase price, for the account of the undersigned, of the Shares covered by
said Collateralized Equity contract and transmit the certificates for such
Shares for which full payment has been made to the undersigned and (iii) unless
otherwise required by applicable law, no notice of such

                                      A-8
<PAGE>

sale need be given to the undersigned. The undersigned shall be liable for any
deficiency in respect of such purchase price.

Dated:
       -----------------------              ------------------------------------
                                             Signature of Obligor or Transferee

                                             Name of Obligor or Transferee:

                                             -----------------------------------

                                             Address of Obligor or Transferee:

                                             -----------------------------------

                                             -----------------------------------

Collateral Delivered

----------------------------------------------------

----------------------------------------------------

                                      A-9
<PAGE>

                                  ASSIGNMENT II

(To be executed if Obligor desires to transfer Commonly Registered Equity
Contract and Corresponding Commonly Registered Debenture to the same transferee)

         For value received, ____________________________hereby sells, assigns
and transfers unto _____________________the obligation and right represented by
this Commonly Registered Equity Contract to purchase the shares of Common Stock,
par value $0.01 per share, of First Shares Bancorp, Inc. to which this Commonly
Registered Equity Contract relates and appoints
_______________________________________________ attorney to transfer such
obligation and right on the books of the Equity Contract Agent with full power
of substitution in the premises. The undersigned hereby acknowledges that this
transfer shall not be registered by the Equity Contract Agent until the
transferee shall have executed the form of Acceptance hereon, and until such
requirement shall be satisfied, the undersigned shall remain the registered
Obligor under this Commonly Registered Equity Contract.

Dated:
       -----------------------                  --------------------------------
                                                           Signature

Signature Guaranteed:

-----------------------------------------------

                                      A-10
<PAGE>

                                   ACCEPTANCE

(To be executed by transferee if Obligor desires to transfer Commonly Registered
Equity Contract and Corresponding Commonly Registered Debenture to the same
transferee)

         The undersigned hereby agrees to be bound by all of the terms and
conditions set forth in the Commonly Registered Equity Contract to be issued in
the name of the undersigned as the Obligor thereunder (and any other Commonly
Registered Equity Contract to be issued in the name of the undersigned and
evidencing all or any part of the same purchase obligation), including without
limitation the obligation to pay the purchase price of Shares (as therein
defined) when due and the right of offset of the Corporation set forth therein.

                                   ---------------------------------------------
                                              Signature of Transferee

                                        Name of Transferee:

                                   -----------------------------------------

                                        Address of Transferee:

                                   ---------------------------------------------

                                   ---------------------------------------------

                                      A-11
<PAGE>

[Face side]                                                            EXHIBIT B

                    [FORM OF COLLATERALIZED EQUITY CONTRACT]

              THIS COLLATERALIZED EQUITY CONTRACT MAY NOT BE SOLD,
               TRANSFERRED OR ASSIGNED EXCEPT UPON COMPLIANCE WITH
              THE REQUIREMENTS FOR TRANSFER SET FORTH HEREIN AND ON
               THE REVERSE HEREOF AND IN AN EQUITY CONTRACT AGENCY
              AGREEMENT DATED AS OF ___________, 2002, BETWEEN THE
                 CORPORATION AND FIRST BANK, GREENWOOD, INDIANA.

               VALID ONLY IF COUNTERSIGNED BY THE EQUITY CONTRACT
                            AGENT AS PROVIDED HEREIN

No. CEC-                                           Aggregate Purchase Obligation

                                                   $
                                                    ----------------------------

                           FIRST SHARES BANCORP, INC.
                         Collateralized Equity Contract

                     Collateralized Equity Contract between
                           First Shares Bancorp, Inc.
                 an Indiana corporation (the "Corporation"), and

          or registered assigns, as obligor hereunder (the "Obligor").

         Subject to the conditions hereinafter set forth, the Obligor agrees to
purchase and pay for, and the Corporation agrees to sell, on January 1, 2011
(the "Purchase Date") that number of shares (the "Shares") of common stock, par
value $0.01 per share, of the Corporation (the "Common Stock") determined by
dividing the aggregate purchase obligation set forth above (the "Aggregate
Purchase Obligation") by a purchase price per Share of $10.00 as adjusted from
time to time upon the occurrence of certain events set forth in the Equity
Contract Agency Agreement.

         At any time prior to the Purchase Date, the Obligor, upon surrender of
this Collateralized Equity Contract with the form of election to purchase on the
reverse hereof duly completed and signed at the office of First Bank, or its
successor as Equity Contract Agent (the "Equity Contract Agent"), initially at
the address specified in such form of election, may purchase all or a portion of
the Shares covered by this Collateralized Equity Contract at a purchase price
per Share of $10.00, as adjusted from time to time upon the occurrence of
certain events. The aggregate purchase price of Shares purchased must be $1,000
or any integral multiple of $1,000 (without regard to any cash settlement for
fractional shares).

                                      B-1
<PAGE>

         The purchase price for the Shares purchased pursuant hereto shall be
payable at the office of the Equity Contract Agent (i) in lawful money of the
United States of America, by bank wire transfer to the Equity Contract Agent in
immediately available funds or by certified or official bank check in New York
Clearing House funds payable to or upon the order of the Corporation, or (ii)
subject to Section 2.03(b) of the Equity Contract Agency Agreement, by surrender
of an equal aggregate unpaid principal amount of Unrestricted Debentures (as
defined in the Equity Contract Agency Agreement) (Unrestricted Debentures being
herein called "Debentures"). The Corporation shall not be obligated to sell the
Shares or deliver any certificate therefor unless it shall receive payment in
full of the aggregate purchase price for the Shares purchased in the manner
herein set forth. Payment of the purchase price for Shares purchased under this
Collateralized Equity Contract shall be accepted and credited by the Corporation
only in amounts equal to $1,000 or any integral multiple of $1,000.

         Debentures surrendered in payment or partial payment of the aggregate
purchase obligation for Shares will be accepted and credited in an amount equal
to the unpaid principal amount thereof; provided that (1) Debentures will be
credited only in amounts equal to $1,000 or any integral multiple of $1,000, and
(ii) a Commonly Registered Debenture (as defined in the Equity Contract Agency
Agreement) may not be surrendered in partial or complete satisfaction of the
purchase obligation under this Collateralized Equity Contract.

         The Corporation has the right to redeem the Debentures as provided in
Article Twelve of the Indenture. In the event that the Corporation should
exercise such right, this Collateralized Equity Contract, and the obligations
and rights of the Corporation and the Obligor hereunder and under the Collateral
Agreement entered into with respect to this Collateralized Equity Contract,
shall be cancelled on the date on which the Debentures are redeemed (the
"Cancellation Date"). Upon such cancellation, the Obligor hereunder shall
receive an amount (the "Cancellation Payment") equal to one percent (1%) of the
principal amount of the purchase obligation under this Collateralized Equity
Contract; provided, however, that if the Debentures are redeemed on or after
July 1, 2010, or after the occurrence of an Adverse Tax Determination (as
defined in the Indenture) or an Adverse Capital Determination (as defined in the
Indenture), no Cancellation Payment will be made, and provided, further, that if
the Debentures are redeemed after an Adverse Tax Determination or Adverse
Capital Determination, holders of Collateralized Equity Contracts shall have the
right to purchase the Shares purchasable hereunder at a price equal to the lower
of (i) ninety-four percent (94%) of the average "current market price" of the
Common Stock, as that term is defined in Section 3.01(d) of the Equity Contract
Agency Agreement, for the 10 business days prior and 10 business days after the
Adverse Tax Determination or Adverse Capital Determination (but not less than
$5.00 per share subject to adjustment as provided in Section 3.01 of the Equity
Contract Agency Agreement) or (ii) the designated Equity Contract purchase
price. In no event shall a Cancellation Payment be made to the extent Common
Stock is purchased prior to cancellation of this Equity Contract regardless of
the reason for cancellation. Notice of any such cancellation of this
Collateralized Equity Contract (the "Cancellation Notice") shall be given to the
Obligor hereunder by first class mail, postage prepaid, not less than 30 nor
more than 60 days prior to the Cancellation Date. Such Cancellation Notice shall
specify the Cancellation Date, the amount of the Cancellation Payment, if any,
and the place where this Collateralized Equity Contract is to be presented and
surrendered. Upon presentation and

                                      B-2
<PAGE>

surrender of this Collateralized Equity Contract at the place provided in the
Cancellation Notice, the Obligor hereunder shall be paid the Cancellation
Payment payable with respect hereto, if any, without interest, and the
Collateral then held as collateral security for this Collateralized Equity
Contract shall be returned to such Obligor.

         This Collateralized Equity Contract and the obligations and rights of
the Corporation and the Obligor hereunder shall terminate if, on or prior to the
Purchase Date, certain events of bankruptcy, insolvency or reorganization with
respect to the Corporation specified in the Equity Contract Agency Agreement
hereinafter referred to shall have occurred.

         This Collateralized Equity Contract is issued under and in accordance
with the Equity Contract Agency Agreement dated as of ______________, 2002 (the
"Equity Contract Agency Agreement") between the Corporation and the Equity
Contract Agent and is subject to the terms and provisions contained in the
Equity Contract Agency Agreement, to all of which terms and provisions the
Obligor consents by becoming obligated hereon by the execution of a Collateral
Agreement (or separate written collateral agreement acceptable to the
Corporation). Copies of the Equity Contract Agency Agreement are on file at the
office of the Equity Contract Agent. All capitalized terms used but not defined
in this Equity Contract which are defined in the Equity Contract Agency
Agreement have the meanings assigned to them in the Equity Contract Agency
Agreement.

         The Corporation and the Equity Contract Agent may deem and treat the
registered Obligor as the absolute obligor hereunder (notwithstanding any
notation or other writing herein) for all purposes, and neither the Corporation
nor the Equity Contract Agent shall be affected by any notice to the contrary.

         This Collateralized Equity Contract shall be the obligation of the
registered Obligor and this Collateralized Equity Contract and such obligation
cannot be sold, transferred, or assigned except upon compliance with the
requirements for transfer set forth in this Collateralized Equity Contract,
including those on the reverse hereof, and in the Equity Contract Agency
Agreement.

         All collateral securing the obligations of an Obligor under this
Collateralized Equity Contract ("Collateral") must consist of one or more of the
following items having an aggregate value, determined as set forth below, at
least equal to the Aggregate Purchase Obligation for Shares covered hereby: (i)
cash in lawful money of the United States of America paid to the Equity Contract
Agent by bank wire transfer in immediately available funds or certificates of
deposit; (ii) standby letters of credit issued by an insured bank that is not an
affiliate of the Corporation; or (iii) debt obligations issued or guaranteed by
the United States of America or an agency thereof, for the payment of which the
full faith and credit of the United States of America is pledged, maturing on or
before the Purchase Date, and, if in book entry form, registered in the name of
the Equity Contract Agent, as custodian for the Obligor and as pledgee under the
related collateral agreement ("Eligible Government Obligations"), which shall be
valued at the unpaid principal amount thereof. Any designation by the
Corporation of obligations as acceptable Collateral may also specify persons or
classes of persons eligible to pledge such Collateral. All Collateral (including
Collateral substituted for other Collateral) delivered to the Equity Contract
Agent shall be endorsed in blank or accompanied by appropriate instrument of
transfer,

                                      B-3
<PAGE>

satisfactory to the Corporation and the Equity Contract Agent, signed in blank,
in each case with signatures guaranteed, unless such Collateral consists of
obligations in bearer form not registered as to principal or interest. Any
Obligor or transferee who shall pledge any Collateral to the Equity Contract
Agent as provided herein shall execute and deliver such instruments and, if
requested by the Corporation, take all such other action as may be necessary to
cause all payments of principal of and interest on the Collateral to be paid to
the Equity Contract Agent. Collateral may be registered in the name of the
Equity Contract Agent, the Corporation or the nominee of either. In the case of
Collateral consisting of any obligation, if the aggregate amount of payments of
principal thereof (whether upon maturity, acceleration, redemption or otherwise)
received by the Equity Contract Agent shall be less than the value thereof
(determined as provided above), the Equity Contract Agent shall notify the
Obligor of such deficiency and the Obligor shall furnish additional Collateral
having a value equal to such deficiency.

         After countersignature by the Equity Contract Agent and prior to the
Purchase Date, this Collateralized Equity Contract may, upon compliance with the
provisions of the Equity Contract Agency Agreement, be exchanged at the office
of the Equity Contract Agent for Collateralized Equity Contracts and/or Commonly
Registered Equity Contracts representing the same Aggregate Purchase Obligation.

         This Collateralized Equity Contract shall not entitle the Obligor
hereunder to any of the rights or privileges of a stockholder of the Corporation
and shall not constitute a subscription for the Shares for any purpose.

         This Collateralized Equity Contract shall not be valid or obligatory
for any purpose until countersigned by the Equity Contract Agent.

Dated:
       ---------------------------
                                        FIRST SHARES BANCORP, INC.

                                        By:
                                           -------------------------------

Attest:

----------------------------------

Countersigned:

FIRST BANK,
As Equity Contract Agent

By:
   -------------------------------

                                      B-4
<PAGE>

[Reverse Side]

                              ELECTION TO PURCHASE

                   (To be executed by an Obligor who wishes to
                   purchase Shares prior to the Purchase Date)

To the Equity Contract Agent:

         The undersigned Obligor (1) exercises the right to purchase that number
of shares of Common Stock, par value $0.01 per share, of First Shares Bancorp,
Inc. which $______ (must be $1,000 or any integral multiple of $1,000) will
purchase at the Share Price set forth in this Collateralized Equity Contract,
and (2) makes payment in full for the number of shares so purchased by payment
of the amount set forth above:

                  (Please check appropriate box.)

         [ ]      in lawful money of the United States of America, by bank wire
                  transfer to the Equity Contract Agent in immediately available
                  funds or by certified or official bank check in New York
                  Clearing House funds payable to or upon the order of the
                  Corporation; or

         [ ]      by surrender herewith of Debentures.

         Please issue the certificate for Shares in the name of, and pay any
cash for any fractional share to:

                  ----------------------------------------------------------
                  (Print or type name)

                  ----------------------------------------------------------
                  (Social Security or other identifying number)

                  ----------------------------------------------------------
                  (Street address)

                  ----------------------------------------------------------
                  (City)                       (State)           (Zip code)

Dated:
      ---------------------------------

                                       -----------------------------------------
                                       Signature

                                      B-5
<PAGE>

         Shares may be purchased in person or by mail at the following address:

                                   First Bank
                            996 South State Road 135
                            Greenwood, Indiana 46143

                                      B-6
<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, ______________________ hereby sells, assigns and
transfers unto ________________________ the obligation and right represented by
this Collateralized Equity Contract to purchase the shares of Common Stock, par
value $.01 per share, of First Shares Bancorp, Inc. to which this Collateralized
Equity Contract relates and appoints _________________________________________
attorney to transfer such obligation and right on the books of the Equity
Contract Agent with full power of substitution in the premises. The undersigned
hereby acknowledges that this transfer shall not be registered by the Equity
Contract Agent until the transferee shall have collateralized its obligation
under the Collateralized Equity Contract to be issued to the transferee in the
manner provided herein and in the Equity Contract Agency Agreement referred to
herein, and, until such collateral requirements shall be satisfied, the
undersigned shall remain the registered Obligor under this Collateralized Equity
Contract.

Dated:
      ---------------------------------         --------------------------------
                                                (Signature)

Signature Guaranteed:

------------------------------------------

                                      B-7
<PAGE>

                                   ACCEPTANCE

(To be executed by Obligor if Collateralized Equity Contract is being exchanged
                   for a Commonly Registered Equity Contract)

         The undersigned hereby agrees to be bound by all of the terms and
conditions set forth in the Commonly Registered Equity Contract to be issued in
the name of the undersigned as the Obligor thereunder (and any other Commonly
Registered Equity Contract to be issued in the name of the undersigned and
evidencing all or any part of the same purchase obligation) including without
limitation the obligation to pay the purchase price of Shares (as therein
defined) when due and the right of offset of the Corporation set forth therein.

                                        ----------------------------------------
                                        (Signature of Obligor)

                                        Name of Obligor:

                                        ----------------------------------------
                                        Address of Obligor:

                                        ----------------------------------------

                                        ----------------------------------------

                                      B-8
<PAGE>

                              COLLATERAL AGREEMENT

      (To be executed by transferee of this Collateralized Equity Contract)

         As collateral security for the obligation of the undersigned under the
Collateralized Equity Contract to be issued to the undersigned as the Obligor
thereunder (and under any other Collateralized Equity Contract to be issued in
the name of the undersigned and evidencing all or any part of the same purchase
obligation), the undersigned does hereby pledge to First Bank, as Equity
Contract Agent, and does hereby grant to it a security interest in, all of the
undersigned's right, title and interest in and to the items of Collateral listed
below (and all proceeds thereof and all Collateral from time to time delivered
to the Equity Contract Agent in substitution therefor). The undersigned hereby
assumes and agrees to perform the obligations of the Obligor set forth in said
Collateralized Equity Contract.

         The undersigned does hereby deliver to the Equity Contract Agent such
Collateral (other than book entry United States Treasury securities pledged
herewith which have been registered in the name of the Equity Contract Agent, as
custodian for the undersigned and as pledgee hereunder). Such Collateral shall
be held by such Equity Contract Agent pursuant to, and until released in
accordance with, the terms of the Equity Contract Agency Agreement dated as of
________________, 2002 between the Corporation and the Equity Contract Agent.
The undersigned further agrees to be bound, or to continue to be bound, as the
case may be, by all of the terms and conditions set forth in said Collateralized
Equity Contract (and any other Collateralized Equity Contract to be issued in
the name of the undersigned and evidencing all or any part of the same purchase
obligation) and said Equity Contract Agency Agreement. The undersigned
represents and warrants that he owns the Collateral free and clear of all liens,
he has the authority and legal right to pledge such Collateral, and he has
executed and delivered all instruments and, if requested by the Corporation,
will take all such other action as may be necessary to cause all payments of
principal and interest on such Collateral to be paid to the Equity Contract
Agent. The undersigned agrees that, upon a default by the undersigned of his
obligation under said Collateralized Equity Contract, (i) the Equity Contract
Agent shall have, in addition to all other rights provided by law or contract,
all the rights of a secured creditor with respect to the Collateral provided in
the Uniform Commercial Code of the State of Indiana, (ii) the Equity Contract
Agent may, subject to any requirements of applicable bankruptcy or other laws,
sell all or a portion of such Collateral, apply the net proceeds, after
deducting the reasonable expenses of such realization and the collection of such
amounts (including attorneys' fees) and any amounts received by it upon the
maturity of any Collateral following such default, to the payment of the
purchase price, for the account of the undersigned, of the Shares covered by
said Collateralized Equity Contract and transmit the certificates for such
Shares for which full payment has been made to the undersigned; and (iii) unless
otherwise required by applicable law, no notice of such sale need be given to
the undersigned. The undersigned shall be liable for any deficiency in respect
of such purchase price.

Dated:
      ------------------------------            --------------------------------
                                                (Signature of Transferee)

                                      B-9
<PAGE>

                                        Name of Transferee:

                                        ----------------------------------------

                                        Address of Transferee:

                                        ----------------------------------------

                                        ----------------------------------------

Collateral Delivered:

--------------------------------------------

--------------------------------------------

                                      B-10

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