EX-4.28



 




Exhibit 4.28


 

 


Form
of Guarantee Agreement


by and between


NATIONAL CITY CORPORATION
as Guarantor


and


THE BANK OF NEW YORK TRUST COMPANY, N.A.

as Guarantee Trustee


relating to


NATIONAL CITY PREFERRED CAPITAL TRUST II


Dated as of [     ]


 

 

 









 




CROSS-REFERENCE TABLE*





	 	 	 	 	 	 	 
	Section of Trust	 	 	 	Section of
	Indenture Act of	 	 	 	Guarantee
	1939, as amended	 	 	 	Agreement
	 
	310
	 	(a)	 	 	 	4.1(a)
	 
	 	(b)	 	 	 	2.8, 4.1(c)
	 
	 	(c)	 	 	 	Inapplicable
	311
	 	(a)	 	 	 	2.2(b)
	 
	 	(b)	 	 	 	2.2(b)
	 
	 	(c)	 	 	 	Inapplicable
	312
	 	(a)	 	 	 	2.2(a)
	 
	 	(b)	 	 	 	2.2(b)
	313
	 	 	 	 	 	2.3
	314
	 	(a)	 	 	 	2.4
	 
	 	(b)	 	 	 	Inapplicable
	 
	 	(c)	 	 	 	2.5
	 
	 	(d)	 	 	 	Inapplicable
	 
	 	(e)	 	 	 	1.1, 2.5, 3.2
	 
	 	(f)	 	 	 	2.1, 3.2
	315
	 	(a)	 	 	 	3.1(d)
	 
	 	(b)	 	 	 	2.7
	 
	 	(c)	 	 	 	3.1
	 
	 	(d)	 	 	 	3.1(d)
	 
	 	(e)	 	 	 	2.1(a)
	316
	 	(a)	 	 	 	1.1, 2.6, 5.4
	 
	 	(b)	 	 	 	5.3
	 
	 	(c)	 	 	 	8.2
	317
	 	(a)	 	 	 	Inapplicable
	 
	 	(b)	 	 	 	Inapplicable
	318
	 	(a)	 	 	 	2.1(b)








 




			
	*	 	This Cross-Reference Table does not constitute part of
the Guarantee Agreement and shall not affect the interpretation of any of its
terms or provisions.


Guarantee Agreement —

National City Preferred Capital Trust II



 









 




Table of Contents




	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	 

	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Trust Indenture Act	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Trust Indenture Act; Application
	 	 	4	 
	Section 2.2

	 	List of Holders
	 	 	4	 
	Section 2.3

	 	Reports by the Guarantee Trustee
	 	 	4	 
	Section 2.4

	 	Periodic Reports to the Guarantee Trustee
	 	 	4	 
	Section 2.5

	 	Evidence of Compliance with Conditions Precedent
	 	 	4	 
	Section 2.6

	 	Events of Default; Waiver
	 	 	5	 
	Section 2.7

	 	Events of Default; Notice
	 	 	5	 
	Section 2.8

	 	Conflicting Interests
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Powers, Duties and Rights of the Guarantee Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Powers and Duties of the Guarantee Trustee
	 	 	5	 
	Section 3.2

	 	Certain Rights of Guarantee Trustee
	 	 	6	 
	Section 3.3

	 	Indemnity
	 	 	8	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Guarantee Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	Guarantee Trustee; Eligibility
	 	 	8	 
	Section 4.2

	 	Appointment, Removal and Resignation of the Guarantee Trustee
	 	 	9	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Guarantee	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Guarantee
	 	 	9	 
	Section 5.2

	 	Waiver of Notice and Demand
	 	 	9	 
	Section 5.3

	 	Obligations Not Affected
	 	 	10	 
	Section 5.4

	 	Rights of Holders
	 	 	10	 
	Section 5.5

	 	Guarantee of Payment
	 	 	11	 
	Section 5.6

	 	Subrogation
	 	 	11	 
	Section 5.7

	 	Independent Obligations
	 	 	11	 




Guarantee Agreement —

National City Preferred Capital Trust II



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	 	 	 	 	Page
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Covenants and Subordination	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Subordination
	 	 	11	 
	Section 6.2

	 	Pari Passu Guarantees
	 	 	11	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Termination	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Termination
	 	 	12	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.1

	 	Successors and Assigns
	 	 	12	 
	Section 8.2

	 	Amendments
	 	 	12	 
	Section 8.3

	 	Notices
	 	 	13	 
	Section 8.4

	 	Benefit
	 	 	13	 
	Section 8.5

	 	Interpretation
	 	 	14	 
	Section 8.6

	 	Governing Law
	 	 	14	 
	Section 8.7

	 	Waiver of Jury Trial
	 	 	14	 
	Section 8.8

	 	Force Majeure
	 	 	14	 




Guarantee Agreement —

National City Preferred Capital Trust II



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          This Guarantee Agreement, dated as of [     ], is executed and delivered by National
City Corporation, a Delaware corporation (the “Guarantor”), having its principal office at
1900 East Ninth Street, Cleveland, Ohio 44114, and The Bank of New York Trust Company,
N.A., a national banking association organized and existing under the laws of the United
States, as trustee (the “Guarantee Trustee”), for the benefit of the Holders (as defined herein)
from time to time of the Trust Preferred Securities of National City Preferred Capital Trust II, a
Delaware statutory trust (the “Issuer Trust”).




          WHEREAS, pursuant to an Amended and Restated Trust Agreement, dated as of [          ] (the “Trust
Agreement”), among the Guarantor, as Depositor, The Bank of New York Trust Company, N.A., as
Property Trustee for the Issuer Trust (the “Property Trustee”), BNYM (Delaware), as Delaware
Trustee for the Issuer Trust (the “Delaware Trustee”), each of the individuals set forth therein in
their capacity as Administrative Trustee for the Issuer Trust (each, an “Administrative
Trustee,” and together, the “Administrative Trustees”) and the Holders from time to time of the
Trust Securities, the Issuer Trust IIs issuing $[                    ] aggregate Liquidation Amount (as defined in the
Trust Agreement) of Trust Preferred Securities having the terms set forth in the Trust Agreement.




          WHEREAS, the proceeds of the Trust Preferred Securities will be used to purchase the Notes (as
defined in the Trust Agreement), which initially will be pledged by the Issuer Trust, acting
through the Property Trustee, to Wilmington Trust Company, as Collateral Agent for the Guarantor,
pursuant to the Collateral Agreement, dated as of the date hereof, among the Guarantor, Wilmington
Trust Company, as Collateral Agent, Custodial Agent, Securities Intermediary and Securities
Registrar, and the Issuer Trust (acting through the Property Trustee).




          WHEREAS, as an incentive for the Holders to purchase the Trust Preferred Securities, the
Guarantor desires irrevocably and unconditionally to agree, to the extent set forth herein, to pay
to the Holders of the Trust Preferred Securities the Guarantee Payments (as defined herein) and to
make certain other payments on the terms and conditions set forth herein.




          NOW, THEREFORE, in consideration of the purchase of Trust Preferred Securities by
each Holder, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor
executes and delivers this Guarantee Agreement for the benefit of the Holders from time to time.




ARTICLE I




Definitions




Section 1.1 Definitions.




          As used in this Guarantee Agreement, the terms set forth below shall, unless the context
otherwise requires, have the following meanings. Capitalized or otherwise defined terms used but
not otherwise defined herein shall have the meanings assigned to such terms in the Trust Agreement
as in effect on the date hereof.




          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person; provided,
however, that an Affiliate of the Guarantor shall not be deemed to be an Affiliate of the Issuer
Trust. 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.


Guarantee Agreement —

National City Preferred Capital Trust II



 









 








          “Board of Directors” means the board of directors of the Guarantor or any committee of that
board duly authorized to act hereunder.




          “Event of Default” means a default by the Guarantor on any of its payment or other obligations
under this Guarantee Agreement; provided, however, that, except with respect to a default in
payment of any Guarantee Payments, the Guarantor shall have received notice of default and shall
not have cured such default within 30 days after receipt of such notice.




          “Guarantee Agreement” means this Guarantee Agreement, as modified, amended or supplemented
from time to time.




          “Guarantee Payments” means the following payments or distributions, without duplication, with
respect to the Trust Preferred Securities of any Series, to the extent not paid or made by or on
behalf of the Issuer Trust: (i) any accumulated and unpaid Distributions required to be paid on the
Trust Preferred Securities of such Series, to the extent the Issuer Trust shall have funds on hand
available therefor at such time; (ii) the Redemption Price with respect to any Trust Preferred
Securities called for redemption by the Issuer Trust (other than in connection with the redemption
of Capital APEX in exchange for Notes or, if the Company elects to remarket the Notes in the form
of New Trust Preferred Securities pursuant to Section 5.2(d) of the Indenture Supplement, such New
Trust Preferred Securities), to the extent the Issuer Trust shall have funds on hand available
therefor at such time; and (iii) upon a voluntary or involuntary termination, winding-up or
liquidation of the Issuer Trust, other than in connection with the distribution of a Like Amount of
Corresponding Assets (as defined in the Trust Agreement) to the Holders of Trust Preferred
Securities and Trust Common Securities, the lesser of (a) the Liquidation Distribution with respect
to each Series of the Trust Preferred Securities, to the extent that the Issuer Trust shall have
funds on hand available therefor at such time and (b) the amount of assets of the Issuer Trust
remaining available for distribution to Holders of the Trust Preferred Securities on liquidation of
the Issuer Trust.




          “Guarantee Trustee” means The Bank of New York Trust Company, N.A., solely in its capacity as
Guarantee Trustee and not in its individual capacity, until a Successor Guarantee Trustee has been
appointed and has accepted such appointment pursuant to the terms of this Guarantee Agreement, and
thereafter means each such Successor Guarantee Trustee.




          “Guarantor” has the meaning specified in the first paragraph of this Guarantee Agreement.




          “Holder” means any Holder (as defined in the Trust Agreement) of any Trust Preferred
Securities; provided, however, that in determining whether the holders of the requisite percentage
of Trust Preferred Securities of any Series have given any request, notice, consent or waiver
hereunder, “Holder” shall not include the Guarantor, the Guarantee Trustee, or any Affiliate of the
Guarantor or the Guarantee Trustee.




          “Issuer Trust” has the meaning specified in the first paragraph of this Guarantee Agreement.




          “List of Holders” has the meaning specified in Section 2.2(a).




          “Majority in Liquidation Amount of the Securities” means, except as provided by the Trust
Indenture Act, a vote by the Holder(s), voting separately as a class, of more than 50% of the
Liquidation Amount of all then outstanding Securities issued by the Issuer Trust.


Guarantee Agreement —

National City Preferred Capital Trust II



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          “Officers’ Certificate” means, with respect to any Person, a certificate signed by the
Chairman and Chief Executive Officer, President or a Vice President, and by the Treasurer, an
Associate Treasurer, an Assistant Treasurer, the Controller, the Secretary or an Assistant
Secretary, of such Person, and delivered to the Guarantee Trustee. One of the officers signing an
Officer’s Certificate given pursuant to Section 2.5 shall be the principal executive, financial or
accounting officer of the Guarantor. Any Officers’ Certificate delivered with respect to compliance
with a condition or covenant provided for in this Guarantee Agreement shall include:





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




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




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




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



     “Responsible Officer” means, with respect to the Guarantee Trustee, any officer within the
corporate trust department of the Guarantee Trustee, including any vice president, assistant vice
president, assistant treasurer, trust officer or any other officer of the Guarantee Trustee who
customarily performs 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 such
person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Guarantee Agreement.



          “Senior Debt” has the meaning specified in the Indenture; and is also defined as “Senior
Securities” or “Securities” therein.




          “Stock Purchase Date” has the meaning specified in the Stock Purchase Contract Agreement,
dated as of the date hereof, between the Guarantor and the Issuer Trust (acting through the
Property Trustee).




          “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the
qualifications to act as Guarantee Trustee under Section 4.1.




          “Trust Agreement” means the Amended and Restated Trust Agreement of the Issuer Trust referred
to in the recitals to this Guarantee Agreement, as modified, amended or supplemented from time to
time.




          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.


Guarantee Agreement —

National City Preferred Capital Trust II



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ARTICLE II




Trust Indenture Act




Section 2.1 Trust Indenture Act; Application.




     (a) This Guarantee Agreement is subject to the provisions of the Trust Indenture Act that are
required to be part of this Guarantee Agreement and shall, to the extent applicable, be governed by
such provisions.



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



Section 2.2 List of Holders.




          (a) The Guarantor will furnish or cause to be furnished to the Guarantee Trustee: (i)
semi-annually, not more than 15 days after April 15 and October 15 in each year, a list, in such
form as the Guarantee Trustee may reasonably require, of the names and addresses of the Holders as
of such April 15 and October 15, and (ii) at such other times as the Guarantee Trustee may request
in writing, within 30 days after the receipt by the Guarantor of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time such list is
furnished, excluding from any such list names and addresses received by the Guarantee Trustee in
its capacity as Securities Registrar.




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




Section 2.3 Reports by the Guarantee Trustee.




          Not later than May 15 of each year, commencing May 15, 2008, the Guarantee Trustee shall
provide to the Holders such reports as are required by Section 313 of the Trust Indenture Act, if
any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The
Guarantee Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture
Act.




Section 2.4 Periodic Reports to the Guarantee Trustee.




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




Section 2.5 Evidence of Compliance with Conditions Precedent.




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


Guarantee Agreement —

National City Preferred Capital Trust II



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Section 2.6 Events of Default; Waiver.




          The Holders of a Majority in Liquidation Amount of the Trust Preferred Securities may, by
vote, on behalf of the Holders of all the Trust Preferred Securities, waive any past default or
Event of Default and its consequences; provided that each Series of Trust Preferred Securities
shall be entitled, in the case of any default or Event of Default that affects such Series
differently from the other Series, to vote separately as a Series with respect thereto. Upon such
waiver, any such default or Event of Default shall cease to exist, and any default or Event of
Default arising therefrom shall be deemed to have been cured, for every purpose of this Guarantee
Agreement, but no such waiver shall extend to any subsequent or other default or Event of Default
or impair any right consequent therefrom.




Section 2.7 Events of Default; Notice.




          (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default,
transmit by mail, first class postage prepaid, to the Holders, notice of any such Event of Default
actually known to a Responsible Officer of the Guarantee Trustee, unless such defaults have been
cured before the giving of such notice, provided that, except in the case of a default in the
payment of a Guarantee Payment, the Guarantee Trustee shall be protected in withholding such notice
if and so long as a committee of Responsible Officers of the Guarantee Trustee in good faith
determines that the withholding of such notice is in the interests of the Holders.




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




Section 2.8 Conflicting Interests.




          The Trust Agreement and the Indenture shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso contained in Section 310(b)
of the Trust Indenture Act.




ARTICLE III




Powers, Duties and Rights of the Guarantee Trustee




Section 3.1 Powers and Duties of the Guarantee Trustee.




          (a) This Guarantee Agreement shall be held by the Guarantee Trustee for the benefit of the
Holders, and the Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except
a Holder exercising his or her rights pursuant to Section 5.4(iv) or to a Successor Guarantee
Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Successor
Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically vest
in any Successor Guarantee Trustee, upon acceptance by such Successor Guarantee Trustee of its
appointment hereunder, and such vesting and cessation of title shall be effective whether or not
conveyancing documents have been executed and delivered pursuant to the appointment of such
Successor Guarantee Trustee.




          (b) If an Event of Default has occurred and is continuing, the Guarantee Trustee shall enforce
this Guarantee Agreement for the benefit of the Holders.


Guarantee Agreement —

National City Preferred Capital Trust II



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          (c) The Guarantee Trustee, before the occurrence of any Event of Default and after the curing
of all Events of Default that may have occurred, shall undertake to perform only such duties as are
specifically set forth in this Guarantee Agreement, and no implied covenants shall be read into
this Guarantee Agreement against the Guarantee Trustee. In case an Event of Default has occurred
(that has not been cured or waived pursuant to Section 2.6), the Guarantee Trustee shall exercise
such of the rights and powers vested in it by this Guarantee Agreement, and use the same degree of
care and skill in its exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.




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





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




     (A) the duties and obligations of the Guarantee Trustee shall be determined
solely by the express provisions of this Guarantee Agreement, and the Guarantee
Trustee shall not be liable except for the performance of such duties and
obligations as are specifically set forth in this Guarantee Agreement; and




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




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




     (iii) the Guarantee Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the Holders of
not less than a Majority in Liquidation Amount of the relevant Series of Trust Preferred
Securities relating to the time, method and place of conducting any proceeding for any
remedy available to the Guarantee Trustee, or exercising any trust or power conferred upon
the Guarantee Trustee under this Guarantee Agreement; and




     (iv) no provision of this Guarantee Agreement shall require the Guarantee Trustee to
expend or risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers.



Section 3.2 Certain Rights of Guarantee Trustee.




          (a) Subject to the provisions of Section 3.1:


Guarantee Agreement —

National City Preferred Capital Trust II



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     (i) The Guarantee Trustee may conclusively rely and shall be fully protected in acting
or refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, judgment, bond, debenture, note, other
evidence of indebtedness or other paper or document (including e-mail, facsimile or other
electronic transmission) reasonably believed by it to be genuine and to have been signed,
sent or presented by the proper Person or Persons (without being required to determine the
correctness of any fact stated therein).




     (ii) Any direction or act of the Guarantor contemplated by this Guarantee Agreement
shall be sufficiently evidenced by an Officers’ Certificate unless otherwise prescribed
herein.




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




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




     (v) The Guarantee Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Guarantee Agreement at the request or direction of any Holder
unless such Holder shall have provided to the Guarantee Trustee such adequate security and
indemnity satisfactory to the Guarantee Trustee against the costs, expenses (including
attorneys’ fees and expenses) and liabilities that might be incurred by it in complying with
such request or direction, including such reasonable advances as may be requested by the
Guarantee Trustee; provided that nothing contained in this Section 3.2(a)(v) shall be taken
to relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its
obligation to exercise the rights and powers vested in it by this Guarantee Agreement.




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




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




     (viii) Whenever in the administration of this Guarantee Agreement the Guarantee Trustee
shall deem it desirable to receive instructions with respect to enforcing any remedy or
right or taking any other action hereunder, the Guarantee Trustee (A) may request
instructions


 Guarantee Agreement —

National City Preferred Capital Trust II




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from the Holders, (B) may refrain from enforcing such remedy or right or taking such
other action until such instructions are received, and (C) shall be fully protected in
acting in accordance with such instructions.



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






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



     (x) in no event shall the Guarantee Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Guarantee Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action.





Section 3.3 Indemnity.




     The Guarantor agrees to indemnify the Guarantee Trustee, its officers, directors,
shareholders, employees and agents for, and to hold them harmless against, any loss, liability or
expense incurred without negligence or bad faith on the part of the Guarantee Trustee arising out
of or in connection with the acceptance or administration of this Guarantee Agreement, including
the costs and expenses of defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The Guarantee Trustee will not
claim or exact any lien or charge on any Guarantee Payments as a result of any amount due to it
under this Guarantee Agreement. This indemnity shall survive the termination of this Guarantee
Agreement or the earlier resignation or removal of the Guarantee Trustee.



ARTICLE IV




Guarantee Trustee




Section 4.1 Guarantee Trustee; Eligibility.




          (a) There shall at all times be a Guarantee Trustee that shall:





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




     (ii) be a Person that is eligible pursuant to the Trust Indenture Act to act as such
and has a combined capital and surplus of at least $50,000,000, and shall be a corporation
meeting the requirements of Section 310(a) of the Trust Indenture Act. If such corporation
publishes reports of condition at least annually, pursuant to law or to the requirements of
its supervising or examining authority, then, for the purposes of this Section 4.1 and to
the extent permitted by the Trust Indenture Act, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.



          (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section
4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2 (c).




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


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National City Preferred Capital Trust II



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Section 4.2 Appointment, Removal and Resignation of the Guarantee Trustee.




          (a) Subject to Section 4.2(b), the Guarantee Trustee may be removed by the Guarantor (i)
without cause at any time when an Event of Default has not occurred and is not continuing and (ii)
at any time when the Guarantee Trustee ceases to be eligible to act as the Guarantee Trustee
pursuant to Section 4.1 hereof or becomes incapable of acting or is adjudged a bankrupt or
insolvent or a receiver of the Guarantee Trustee or of its property is appointed or any public
officer takes charge or control of the Guarantee Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation.




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




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




          (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as
provided in this Section 4.2 within 60 days after delivery to the Guarantor of an instrument of
resignation, the resigning Guarantee Trustee may petition, at the expense of the Guarantor, any
court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor
Guarantee Trustee.




ARTICLE V




Guarantee




Section 5.1 Guarantee.




          The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the
Guarantee Payments (without duplication of amounts theretofore paid by or on behalf of the Issuer
Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the
Issuer Trust may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be
satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing
the Issuer Trust to pay such amounts to the Holders.




Section 5.2 Waiver of Notice and Demand.




          The Guarantor hereby waives notice of acceptance of this Guarantee Agreement and of any
liability to which it applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Guarantee Trustee, the Issuer Trust or any other Person before
proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands.


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Section 5.3 Obligations Not Affected.




          The obligations, covenants, agreements and duties of the Guarantor under this Guarantee
Agreement shall in no way be affected or impaired by reason of the happening from time to time of
any of the following:




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




          (b) the extension of time for the payment by the Issuer Trust of all or any portion of the
Distributions (other than an extension of time for payment of Distributions that results from the
extension of any interest payment period on the Notes as provided in the Indenture), Redemption
Price, Liquidation Distribution or any other sums payable under the terms of the Trust Preferred
Securities or the extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Trust Preferred Securities;




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




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




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




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




          (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a guarantor, it being the intent of this Section 5.3 that the obligations
of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.




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




Section 5.4 Rights of Holders.




          The Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited
with the Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee Trustee
has the right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a
Majority in Liquidation Amount of the Trust Preferred Securities of the affected Series have the
right to direct the time, method and place of conducting any proceeding for any remedy available to
the Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust or power
conferred upon the Guarantee Trustee under this Guarantee Agreement; and (iv) any Holder may
institute a legal proceeding directly against the Guarantor to enforce its rights under this
Guarantee Agreement, without first instituting a legal proceeding against the Issuer Trust or any
other Person.


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Section 5.5 Guarantee of Payment.




          This Guarantee Agreement creates a guarantee of payment and not of collection. This Guarantee
Agreement will not be discharged except by payment of the Guarantee Payments in full (without
duplication of amounts theretofore paid by the Issuer Trust) or upon the distribution of Notes to
Holders as provided in the Trust Agreement (or, if the Company elects to remarket the Notes in the
form of New Trust Preferred Securities pursuant to Section 5.2(d) of the Indenture Supplement, such
New Trust Preferred Securities).




Section 5.6 Subrogation.




          The Guarantor shall be subrogated to all (if any) rights of the Holders against the Issuer
Trust IIn respect of any amounts paid to the Holders by the Guarantor under this Guarantee
Agreement and shall have the right to waive payment by the Issuer Trust pursuant to Section 5.1;
provided, however, that the Guarantor shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise any rights that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment
under this Guarantee Agreement, if, at the time of any such payment, any amounts are due and unpaid
under this Guarantee Agreement. If any amount shall be paid to the Guarantor in violation of the
preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay
over such amount to the Holders.




Section 5.7 Independent Obligations.




          The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Issuer Trust with respect to the Trust Preferred Securities and that the Guarantor shall be
liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of
this Guarantee Agreement notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.




ARTICLE VI




Covenants and Subordination




Section 6.1 Subordination.




          The obligations of the Guarantor under this Guarantee Agreement will constitute unsecured
obligations of the Guarantor and at all times prior to the Stock Purchase Date will rank
subordinate and junior in right of payment and upon liquidation to all Senior Debt of the Guarantor
to the extent and in the manner set forth in the Indenture with respect to the Notes, and the
provisions of the Indenture will apply, mutatis mutandis, to the obligations of the Guarantor
hereunder. The obligations of the Guarantor hereunder do not constitute Senior Debt of the
Guarantor.




Section 6.2 Pari Passu Guarantees.




          At all times prior to the Stock Purchase Date, the obligations of the Guarantor under this
Guarantee Agreement shall rank pari passu with the obligations of the Guarantor under (i) any
similar guarantee agreements issued by the Guarantor on behalf of the holders of preferred or
capital securities issued by any statutory trust the assets of which consist of subordinated or
junior subordinated debt securities that are pari passu to the Notes and the proceeds thereof, (ii)
any expense agreements entered into by the Guarantor in connection with the offering of preferred
or capital securities by any statutory trust the assets of which consists of debt securities that
are pari passu to the Notes and the proceeds


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National City Preferred Capital Trust II



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thereof, and (iii) any other security, guarantee or other agreement or obligation that is
expressly stated to rank pari passu with the obligations of the Guarantor under this Guarantee
Agreement or with any obligation that ranks pari passu with the obligations of the Guarantor under
this Guarantee Agreement. At all times after the Stock Purchase Date, the obligations of the
Guarantor under this Guarantee Agreement shall rank pari passu with the obligations of the
Guarantor under (i) any similar guarantee agreements issued by the Guarantor on behalf of the
holders of preferred or capital securities issued by any statutory trust the assets of which
consist of preferred stock issued by Guarantor that is pari passu to the Preferred Stock and the
proceeds thereof, and (ii) any security, guarantee or other agreement or obligation with regard to
preferred stock issued by the Guarantor that, by its express terms, is pari passu to the Preferred
Stock and the proceeds thereof.




ARTICLE VII




Termination




Section 7.1 Termination.




          This Guarantee Agreement shall terminate and be of no further force and effect upon (i) full
payment of the Redemption Price of all Trust Preferred Securities or (ii) full payment of the
amounts payable in accordance with the Trust Agreement upon liquidation of the Issuer Trust.
Notwithstanding the foregoing, this Guarantee Agreement will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder must restore payment of any sums paid
with respect to Trust Preferred Securities or this Guarantee Agreement.




ARTICLE VIII




Miscellaneous




Section 8.1 Successors and Assigns.


          All guarantees and agreements contained in this Guarantee Agreement shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of
the Holders of the Trust Preferred Securities then outstanding. Except in connection with a
consolidation, merger or sale involving the Guarantor that is permitted under the Indenture and
pursuant to which the successor or assignee agrees in writing to perform the Guarantor’s
obligations hereunder, the Guarantor shall not assign its obligations hereunder.


Section 8.2 Amendments.



          This Guarantee Agreement may be amended by a written instrument executed by the Guarantor and
the Guarantee Trustee. Except with respect to any changes that do not adversely affect the rights
of the Holders in any material respect (in which case no consent of the Holders will be required),
this Guarantee Agreement may only be amended with the prior approval of the Holders of not less
than a Majority in Liquidation Amount of the outstanding Trust Preferred Securities. The holders
of each Series of Trust Preferred Securities will also be entitled to vote separately as a class to
the extent that any proposed amendment would not affect them in the same or substantially the same
manner. The provisions of Article VI of the Trust Agreement concerning meetings of the Holders
shall apply to the giving of such approval.


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Section 8.3 Notices.




          Any notice, request or other communication required or permitted to be given hereunder shall
be in writing, duly signed by the party giving such notice, and delivered, telecopied or mailed by
first-class mail as follows:




          (a) if given to the Guarantor, to the address set forth below or such other address, facsimile
number or to the attention of such other Person as the Guarantor may give notice to the Guarantee
Trustee and the Holders:



National City Corporation

1900 East Ninth Street
Cleveland, Ohio 44114
Facsimile: (216) 222-2000
Attention: Corporate Secretary



          (b) if given to the Issuer Trust, in care of the Guarantee Trustee, at the Issuer Trust’s (and
the Guarantee Trustee’s) address set forth below or such other address as the Guarantee Trustee on
behalf of the Issuer may give notice to the Guarantor and Holders:



The Bank of New York Trust Company, N.A.

2 N. LaSalle Street Suite 1020
Chicago, IL
60602
Facsimile: (312) 827-8542

Attention: Corporate Trust Administration



with a copy to:



National City Preferred Capital Trust II

c/o National City Corporation
1900 East Ninth Street
Cleveland, Ohio 44114
Facsimile: (216) 222-2000

Attention: Corporate Secretary



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




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




Section 8.4 Benefit.




          This Guarantee Agreement is solely for the benefit of the Holders and is not separately
transferable from the Trust Preferred Securities.


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Section 8.5 Interpretation.




     In this Guarantee Agreement, unless the context otherwise requires:



     (a) capitalized terms used in this Guarantee Agreement but not defined in the preamble hereto
have the respective meanings assigned to them in Section 1.1;



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



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



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



     (e) a term defined in the Trust Indenture Act has the same meaning when used in this
Guarantee Agreement unless otherwise defined in this Guarantee Agreement or unless the context
otherwise requires;



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



     (g) the masculine, feminine or neuter genders used herein shall include the masculine,
feminine and neuter genders.



Section 8.6 Governing Law.


          THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.





Section 8.7 Waiver of Jury Trial.




          EACH OF THE GUARANTOR AND THE GUARANTEE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS GUARANTEE AGREEMENT, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.





Section 8.8 Force Majeure.




          In no event shall the Guarantee Trustee be responsible or liable for any failure or delay in
the performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Guarantee Trustee shall use reasonable efforts
which are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.




* * * *


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


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




	 	 	 	 	 
	 	National City Corporation
as Guarantor
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	The Bank of New York Trust Company, N.A.

individually and as Guarantee Trustee
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 


Guarantee Agreement —

National City Preferred Capital Trust II