(s) Agreements with Regulatory Agencies. Except as set forth on Schedule E, neither
the Company nor any Company Subsidiary is subject to any material cease-and-desist or other
similar order or enforcement action issued by, or is a party to any material written agreement,
consent agreement or memorandum of understanding with, or is a party to any commitment letter
or similar undertaking to, or is subject to any capital directive by, or since December 31, 2006,
has adopted any board resolutions at the request of, any Governmental Entity (other than the
Appropriate Federal Banking Agencies with jurisdiction over the Company and the Company
Subsidiaries) that currently restricts in any material respect the conduct of its business or that in
any material manner relates to its capital adequacy, its liquidity and funding policies and
practices, its ability to pay dividends, its credit, risk management or compliance policies or
procedures, its internal controls, its management or its operations or business (each item in this
sentence, a “Regulatory Agreement”), nor has the Company or any Company Subsidiary been
advised since December 31, 2006 by any such Governmental Entity that it is considering issuing,
initiating, ordering, or requesting any such Regulatory Agreement. The Company and each
Company Subsidiary are in compliance in all material respects with each Regulatory Agreement
to which it is party or subject, and neither the Company nor any Company Subsidiary has
received any notice from any Governmental Entity indicating that either the Company or any
Company Subsidiary is not in compliance in all material respects with any such Regulatory
Agreement. "Appropriate Federal Banking Agency" means the “appropriate Federal banking
agency” with respect to the Company or such Company Subsidiaries, as applicable, as defined in
Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(q)).

(t) Insurance. The Company and the Company Subsidiaries are insured with
reputable insurers against such risks and in such amounts as the management of the Company
reasonably has determined to be prudent and consistent with industry practice. The Company
and the Company Subsidiaries are in material compliance with their insurance policies and are
not in default under any of the material terms thereof, each such policy is outstanding and in full
force and effect, all premiums and other payments due under any material policy have been paid,
and all claims thereunder have been filed in due and timely fashion, except, in each case, as
would not, individually or in the aggregate, reasonably be expected to have a Company Material
Adverse Effect.

(u) Intellectual Property. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, (i) the Company and each
Company Subsidiary owns or otherwise has the right to use, all intellectual property rights,
including all trademarks, trade dress, trade names, service marks, domain names, patents,
inventions, trade secrets, know-how, works of authorship and copyrights therein, that are used in
the conduct of their existing businesses and all rights relating to the plans, design and
specifications of any of its branch facilities (“Proprietary Rights”) free and clear of all liens and
any claims of ownership by current or former employees, contractors, designers or others and (ii)
neither the Company nor any of the Company Subsidiaries is materially infringing, diluting,
misappropriating or violating, nor has the Company or any or the Company Subsidiaries received
any wnitten (or, to the knowledge of the Company, oral) communications alleging that any of
them has materially infringed, diluted, misappropriated or violated, any of the Proprietary Rights
owned by any other person. Except as would not, individually or in the aggregate, reasonably be

-12-

BAO? uN? 2



(a) by either the Investor or the Company if the Closing shall not have occurred by
the 30" calendar day following the Signing Date: provided, however. that in the event the
Closing has not occurred by such 30" calendar day, the parties will consult in good faith to
determine whether to extend the term of this Agreement, it being understood that the parties shall
be required to consult only until the fifth day after such 30" calendar day and not be under any
obligation to extend the term of this Agreement thereafter; provided, further, that the right to
terminate this Agreement under this Section 5.1 (a) shall not be available to any party whose
breach of any representation or warranty or failure to perform any obligation under this
Agreement shall have caused or resulted in the failure of the Closing to occur on or prior to such

date; or

(b) by either the Investor or the Company in the event that any Governmental Entity
shall have issued an order, decree or ruling or taken any other action restraining, enjoining or
otherwise prohibiting the transactions contemplated by this Agreement and such order, decree,
tuling or other action shall have become final and nonappealable; or

(c) by the mutual written consent of the Investor and the Company,

In the event of termination of this Agreement as provided in this Section 5.1, this Agreement
shall forthwith become void and there shall be no liability on the part of either party hereto
except that nothing herein shall relieve either party from liability for any breach of this
Agreement.

5.2 Survival of Representations and Warranties. All covenants and agreements, other

than those which by their terms apply in whole or in part after the Closing, shall terminate as of
the Closing. The representations and warranties of the Company made herein or in any
certificates delivered in connection with the Closing shall survive the Closing without limitation.

5.3 Amendment. No amendment of any provision of this Agreement will be effective
unless made in writing and signed by an officer or a duly authorized Tepresentative of each party;
provided that the Investor may unilaterally amend any provision of this Agreement to the extent
required to comply with any changes after the Signing Date in applicable federal statutes. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise of any other right, power or privilege. The rights and remedies herein provided shall be
cumulative of any rights or remedies provided by law.

5.4 Waiver of Conditions. The conditions to each party’s obligation to consummate
the Purchase are for the sole benefit of such party and may be waived by such party in whole or
in part to the extent permitted by applicable law. No waiver will be effective unless it is ina
writing signed by a duly authorized officer of the waiving party that makes express reference to
the provision or provisions subject to such waiver.

5.5 Governing Law: Submission to Jurisdiction, Etc, This Agreement will be
United States if and to

governed by and construed in accordance with the federal law of the

-33-

POSE OMI TOA KAY? Zo 0K" 9


enforceable under applicable law shall be entitled to compel specitic performance of the
obligations of the Company under this Section 4.5 in accordance with the terms and conditions
of this Section 4.5

(0) No Inconsistent Agreements, The Company shall not, on or after the Signing
Date, enter into any agreement with respect to its securities that may impair the rights granted to

the Investor and the Holders under this Section 4.5 or that otherwise conflicts with the provisions
hereof in any manner that may impair the rights granted to the Investor and the Holders under
this Section 4.5. In the event the Company has, prior to the Signing Date, entered into any
agreement with respect to its securities that is inconsistent with the rights granted to the Investor
and the Holders under this Section 4.5 (including agreements that are inconsistent with the order
of priority contemplated by Section 4.5(b)(vi)) or that may otherwise conflict with the provisions
hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure
they are consistent with the provisions of this Section 4.5.

(p) Certain Offerings by the Investor. In the case of any securities held by the

Investor that cease to be Registrable Securities solely by reason of clause (2) in the definition of
“Registrable Securities,” the provisions of Sections 4.5(b)(ii), clauses (iv), (ix) and (x)-(xii) of
Section 4.5(d), Section 4.5(h) and Section 4.5(j) shall continue to apply until such securities
otherwise cease to be Registrable Securities. In any such case, an “underwritten” offering or
other disposition shall include any distribution of such securities on behalf of the Investor by one
or more broker-dealers, an “underwriting agreement” shall include any purchase agreement
entered into by such broker-dealers, and any “registration statement” or “prospectus” shall
include any offering document approved by the Company and used in connection with such
distribution.

(q) Registered Sales of the Warrant. The Holders agree to sell the Warrant or any

portion thereof under the Shelf Registration Statement only beginning 30 days after notifying the
Company of any such sale, during which 30-day period the Investor and all Holders of the
Warrant shall take reasonable steps to agree to revisions to the Warrant to permit a public
distribution of the Warrant, including entering into a warrant agreement and appointing a warrant
agent.

4.6 Depositary Shares. Upon request by the Investor at any time following the
Closing Date, the Company shall promptly enter into a depositary arrangement, pursuant to
customary agreements reasonably satisfactory to the Investor and with a depositary reasonably
acceptable to the Investor, pursuant to which the Preferred Shares or the Warrant Shares may be
deposited and depositary shares, each representing a fraction of a Preferred Share or Warrant
Share, as applicable, as specified by the Investor, may be issued. From and after the execution of
any such depositary arrangement, and the deposit of any Preferred Shares or Warrant Shares, as
applicable, pursuant thereto, the depositary shares issued pursuant thereto shall be deemed
“Preferred Shares”, “Warrant Shares” and, as applicable, “Registrable Securities” for purposes of
this Agreement.

4.7 Restriction on Dividends and Repurchases.

-29-

ASUS LLY as 9


(c) “Junior Stock” means the Common Stock. [nsert titles of any existing Junior
Stock| and any other class or series of stock of the Issuer the terms of which expressly provide
that it ranks junior to Designated Preferred Stock as to dividend rights and/or as to rights on
liquidation, dissolution or winding up of the Issuer.

(d) “Liquidation Amount” means $[1.000]' per share of Designated Preferred Stock.

(e) “Minimum Amount” means $[Jnsert $ amount equal to 25% of the aggregate
value of the Designated Preferred Stock issued on the Original Issue Date}.

(f) “Parity Stock” means any class or series of stock of the Issuer (other than
Designated Preferred Stock) the terms of which do not expressly provide that such class or series
will rank senior or junior to Designated Preferred Stock as to dividend rights and/or as to rights
on liquidation, dissolution or winding up of the Issuer (in each case without regard to whether
dividends accrue cumulatively or non-cumulatively). Without limiting the foregoing, Parity
Stock shall include the Issuer’s [Insert title(s) of existing classes or series of Parity Stock].

(g) “Signing Date” means [Insert date of applicable securities purchase agreement.

Part. 4. Certain Voting Matters. [To be inserted if the Charter provides for voting in
Proportion to liquidation preferences: Whether the vote or consent of the holders of a plurality,
majority or other portion of the shares of Designated Preferred Stock and any Voting Parity
Stock has been cast or given on any matter on which the holders of shares of Designated
Preferred Stock are entitled to vote shall be determined by the Issuer by reference to the specified
liquidation amount of the shares voted or covered by the consent as if the Issuer were liquidated
on the record date for such vote or consent, if any, or, in the absence of a record date, on the date
for such vote or consent. For purposes of determining the voting rights of the holders of
Designated Preferred Stock under Section 7 of the Standard Provisions forming part of this
[Certificate of Designations}, each holder will be entitled to one vote for each $1,000 of
liquidation preference to which such holder’s shares are entitled.] [To be inserted if the Charter
does not provide for voting in proportion to liquidation preferences: Holders of shares of
Designated Preferred Stock will be entitled to one vote for each such share on any matter on
which holders of Designated Preferred Stock are entitled to vote, including any action by written

consent.]

[Remainder of Page Intentionally Left Blank]

MIssuer desires to issue shares with a higher dollar amount liquidation preference. liquidation preference
references will be modified accordingly. In such case (in accordance with Section 4.6 of the Securities
Purchase Agreement), the issuer will be required to enter into a deposit agreement.

HSS tHnd TSEC VOY Seseeny 9


acquire its Common Stock (“Common Stock”) that is not reserved for issuance as specified on
Schedule B, and the Company has not made any other commitment to authorize, issue or sell any
Common Stock. Since the Capitalization Date, the Company has not issued any shares of
Common Stock, other than (i) shares issued upon the exercise of stock options or delivered under
other equity-based awards or other convertible securities or warrants which were issued and
outstanding on the Capitalization Date and disclosed on Schedule B and (ii) shares disclosed on
Schedule B. Each holder of 5% or more of any class of capital stock of the Company and such
holder’s primary address are set forth on Schedule B,

{c) Preferred Shares. The Preferred Shares have been duly and validly authorized,
and, when issued and delivered pursuant to this Agreement, such Preferred Shares will be duly
and validly issued and fully paid and non-assessable, will not be issued in violation of any
preemptive rights, and will rank pari passu with or senior to all other series or classes of
Preferred Stock, whether or not issued or outstanding, with respect to the payment of dividends
and the distribution of assets in the event of any dissolution, liquidation or winding up of the
Company.

(d) The Warrant and Warrant Shares. The Warrant has been duly authorized and,

when executed and delivered as contemplated hereby, will constitute a valid and legally binding
obligation of the Company enforceable against the Company in accordance with its terms, except
as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and general equitable
principles, regardless of whether such enforceability is considered in a proceeding at law or in
equity (“Bankruptcy Exceptions”). The shares of Warrant Preferred Stock issuable upon exercise
of the Warrant (the “Warrant Shares”) have been duly authorized and reserved for issuance upon
exercise of the Warrant and when so issued in accordance with the terms of the Warrant will be
validly issued, fully paid and non-assessable, and will rank pari passu with or senior to all other
series or classes of Preferred Stock, whether or not issued or outstanding, with respect to the
payment of dividends and the distribution of assets in the event of any dissolution, liquidation or

winding up of the Company.

(e) Authorization, Enforceability.

(i) The Company has the corporate power and authority to execute and
deliver this Agreement and the Warrant and to carry out its obligations hereunder and
thereunder (which includes the issuance of the Preferred Shares, Warrant and Warrant
Shares). The execution, delivery and performance by the Company of this Agreement and
the Warrant and the consummation of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate action on the part of the Company
and its stockholders, and no further approval or authorization is required on the part of
the Company. This Agreement is a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, subject to the Bankruptcy
Exceptions.

~6-



ANNEX E
FORM OF WARRANT

SSRN ARRANT

[SEE ATTACHED]



thereof, of Designated Preferred Stock immediately prior to such consummation, taken as
a whole;

provided, however, that for all purposes of this Section 7(c), any increase in the amount of the
authorized Preferred Stock, including any increase in the authorized amount of Designated
Preterred Stock necessary to satisfy preemptive or similar rights granted by the Issuer to other
persons prior to the Signing Date, or the creation and issuance, or an increase in the authorized or
issued amount, whether pursuant to preemptive or similar rights or otherwise, of any other series
of Preferred Stock, or any securities convertible into or exchangeable or exercisable for any other
series of Preferred Stock, ranking equally with and/or junior to Designated Preferred Stock with
respect to the payment of dividends (whether such dividends are cumulative or non-cumulative)
and the distribution of assets upon liquidation, dissolution or winding up of the Issuer will not be
deemed to adversely affect the rights, preferences, privileges or voting powers, and shall not
require the affirmative vote or consent of, the holders of outstanding shares of the Designated
Preferred Stock.

(d) Changes after Provision for Redemption. No vote or consent of the holders of

Designated Preferred Stock shail be required pursuant to Section 7(c) above if, at or prior to the
time when any such vote or consent would otherwise be required pursuant to such Section, all
outstanding shares of the Designated Preferred Stock shall have been redeemed, or shall have
been called for redemption upon proper notice and sufficient funds shall have been deposited in
trust for such redemption, in each case pursuant to Section 5 above.

{e) Procedures for Voting and Consents. The rules and procedures for calling and

conducting any meeting of the holders of Designated Preferred Stock (including, without
limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies
at such a meeting, the obtaining of written consents and any other aspect or matter with regard to
such a meeting or such consents shall be governed by any rules of the Board of Directors or any
duly authorized committee of the Board of Directors, in its discretion, may adopt from time to
time, which rules and procedures shall conform to the requirements of the Charter, the Bylaws,
and applicable law and the rules of any national securities exchange or other trading facility on
which Designated Preferred Stock is listed or traded at the time.

Section 8. Record Holders. To the fullest extent permitted by applicable law, the Issuer
and the transfer agent for Designated Preferred Stock may deem and treat the record holder of
any share of Designated Preferred Stock as the true and lawful owner thereof for all purposes,
and neither the Issuer nor such transfer agent shall be affected by any notice to the contrary.

Section 9. Notices. All notices or communications in respect of Designated Preferred
Stock shall be sufficiently given if given in writing and delivered in person or by first class mail,
postage prepaid. or if given in such other manner as may be permitted in this Certificate of
Designations, in the Charter or Bylaws or by applicable law. Notwithstanding the foregoing, if
shares of Designated Preferred Stock are issued in book-entry form through The Depository
Trust Issuer or any similar facility. such notices may: be given to the holders of Designated
Preferred Stock in any manner permitted by such facility.

NETL BEE NNO oki gine


have been deposited by the Issuer, in trust for the pro rata benetit of the holders of the shares
called for redemption, with a bank or trust company doing business in the Borough of
Manhattan, The City of New York, and having a capital and surplus of at least $500 million and
selected by the Board of Directors, so as to be and continue to be available solely therefor, then,
notwithstanding that any certificate for any share so called for redemption has not been
surrendered for cancellation, on and after the redemption date dividends shall cease to accrue on
all shares so called for redemption, all shares so called for redemption shall no longer be deemed
outstanding and all rights with respect to such shares shall forthwith on such redemption date
cease and terminate, except only the right of the holders thereof to receive the amount payable on
such redemption from such bank or trust company, without interest. Any funds unclaimed at the
end of three years from the redemption date shall, to the extent permitted by law, be released to
the Issuer, after which time the holders of the shares so called for redemption shall look only to
the Issuer for payment of the redemption price of such shares.

(f) Status of Redeemed Shares. Shares of Designated Preferred Stock that are
redeemed, repurchased or otherwise acquired by the Issuer shall revert to authorized but unissued
shares of Preferred Stock (provided that any such cancelled shares of Designated Preferred Stock
may be reissued only as shares of any series of Preferred Stock other than Designated Preferred

Stock).

Section 6. Conversion. Holders of Designated Preferred Stock shares shall have no right
to exchange or convert such shares into any other securities,

Section 7. Voting Rights.

(a) General. The holders of Designated Preferred Stock shall not have any voting
rights except as set forth below or as otherwise from time to time required by law.

(b) Preferred Stock Directors. Whenever, at any time or times, dividends payable on
the shares of Designated Preferred Stock have not been paid for an aggregate of six quarterly
Dividend Periods or more, whether or not consecutive, the authorized number of directors of the
Issuer shall automatically be increased by two and the holders of the Designated Preferred Stock
shall have the right, with holders of shares of any one or more other classes or series of Voting
Parity Stock outstanding at the time, voting together as a class, to elect two directors (hereinafter
the “Preferred Directors” and each a “Preterred Director") to fill such newly created
directorships at the Issuer's next annual meeting of stockholders (or at a special meeting called
for that purpose prior to such next annual meeting) and at each subsequent annual meeting of
stockholders until all accrued and unpaid dividends for all past Dividend Periods. including the
latest completed Dividend Period (including, if applicable as provided in Section 3(a) above,
dividends on such amount), on all outstanding shares of Designated Preferred Stock have been
declared and paid in full at which time such right shall terminate with respect to the Designated
Preterred Stock. except as herein or by law expressly provided, subject to revesting in the event
of each and every subsequent default of the character above mentioned: provided that it shall be
a qualification for election for any Preferred Director that the election of such Preferred Director
shall not cause the Issuer to violate any corporate governance requirements of any securities
exchange or other trading facility on which securities of the Issuer may then be listed or traded
that listed or traded companies must have a majority of independent directors. Upon any

AT

DARROW ELSE VED Suede


(c) “Junior Stock” means the Common Stock, [dnsert titles of any existing Junior
Stock] and any other class or series of stock of the Issuer the terms of which expressly provide
that it ranks junior to Designated Preferred Stock as to dividend rights and/or as to rights on
liquidation, dissolution or winding up of the Issuer.

(d) “Liquidation Amount” means ${1.000]' per share of Designated Preferred Stock.

(e) “Minimum Amount” means ${dnsert $ amount equal to 25% of the aggregate
value of the Designated Preferred Stock issued on the Original Issue Date}.

(f) “Parity Stock” means any class or series of stock of the Issuer (other than
Designated Preferred Stock) the terms of which do not expressly provide that such class or series
will rank senior or junior to Designated Preterred Stock as to dividend tights and/or as to rights
on liquidation, dissolution or winding up of the Issuer (in each case without regard to whether
dividends accrue cumulatively or non-cumulatively). Without limiting the foregoing, Parity
Stock shall include the Issuer’s UST Preferred Stock land] [Insert title(s) of any other classes or

series of Parity Stock].
(g) “Signing Date” means [Insert date of applicable securities purchase agreement].

(bh) “UST Preferred Stock” means the Issuer's Fixed Rate Cumulative Perpetual
Preferred Stock, Series [e].

Part. 4. Certain Voting Matters. [To be inserted if the Charter provides for voting in
Proportion to liquidation preferences: Whether the vote or consent of the holders of a plurality,
majority or other portion of the shares of Designated Preferred Stock and any Voting Parity
Stock has been cast or given on any matter on which the holders of shares of Designated
Preferred Stock are entitled to vote shall be determined by the Issuer by reference to the specified
liquidation amount of the shares voted or covered by the consent as if the Issuer were liquidated
on the record date for such vote or consent, if any, or, in the absence of a record date, on the date
for such vote or consent. For purposes of determining the voting rights of the holders of
Designated Preferred Stock under Section 7 of the Standard Provisions forming part of this
[Certificate of Designations], each holder will be entitled to one vote for each $1 000 of
liquidation preference to which such holder's shares are entitled.| [To be inserted if the Charter
does not provide for voting in proportion to liquidation preferences: Holders of shares of
Designated Preferred Stock will be entitled to one vote for each such share on any matter on
which holders of Designated Preferred Stock are entitled to vote, including any action by written

consent.]

[Remainder of Page Intentionally Left Blank]

‘If Issuer desires to issue shares with a higher dollar amount liquidation preference, liquidation preference
references will be modified accordingly. In such case tin accordance with Section 4.6 of the Securities
Purchase Agreement), the issuer will be required to enter into a deposit agreement.



Dividend Period, and for the initial Dividend Period, shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. and actual days elapsed over a 30-day month,

Dividends that are payable on Designated Preferred Stock on any Dividend Payment Date
will be payable to holders of record of Designated Preferred Stock as they appear on the stock
register of the Issuer on the applicable record date, which shall be the 15th calendar day
immediately preceding such Dividend Payment Date or such other record date fixed by the
Board of Directors or any duly authorized committee of the Board of Directors that is not more
than 60 nor less than 10 days prior to such Dividend Payment Date (each, a “Dividend Record
Date”). Any such day that is a Dividend Record Date shall be a Dividend Record Date whether
or not such day is a Business Day.

Holders of Designated Preferred Stock shall not be entitled to any dividends, whether
payable in cash, securities or other property, other than dividends (ifany) declared and payable
on Designated Preferred Stock as specified in this Section 3 (subject to the other provisions of
the Certificate of Designations).

(b) Priority of Dividends. So long as any share of Designated Preferred Stock
remains outstanding, no dividend or distribution shall be declared or paid on the Common Stock
or any other shares of Junior Stock (other than dividends payable solely in shares of Common
Stock) or Parity Stock, subject to the immediately following paragraph in the case of Parity
Stock, and no Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly,
purchased, redeemed or otherwise acquired for consideration by the Issuer or any of its
subsidiaries unless all accrued and unpaid dividends for all past Dividend Periods, including the
latest completed Dividend Period (including, if applicable as provided in Section 3(a) above,
dividends on such amount), on all outstanding shares of Designated Preferred Stock have been or
are contemporaneously declared and paid in full (or have been declared and a sum sufficient for
the payment thereof has been set aside for the benefit of the holders of shares of Designated
Preferred Stock on the applicable record date). The foregoing limitation shall not apply to (i)
redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock in
connection with the administration of any employee benefit plan in the ordinary course of
business and consistent with past practice; (ii) the acquisition by the Issuer or any of its
subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial ownership of
any other persons (other than the Issuer or any of its subsidiaries), including as trustees or
custodians; and (iii) the exchange or conversion of Junior Stock for or into other Junior Stock or
of Parity Stock for or into other Parity Stock (with the same or lesser aggregate liquidation
amount) or Junior Stock, in each case, solely to the extent required pursuant to binding
contractual agreements entered into prior to the Signing Date or any subsequent agreement for
the accelerated exercise, settlement or exchange thereof for Common Stock.

When dividends are not paid (or declared and a sum sufficient for payment thereof set
aside for the benctit of the holders thereof on the applicable record date) on any Dividend
Payment Date (or. in the case of Parity Stock having dividend payment dates different from the
Dividend Payment Dates, on a dividend payment date falling within a Dividend Period related to
such Dividend Payment Date) in full upon Designated Preferred Stock and any shares of Parity
Stock, all dividends declared on Designated Preferred Stock and all such Parity Stock and
payable on such Dividend Payment Date (or. in the case of Parity Stock having dividend

DAES. ESTEVE 20d


to such distribution, holders of Designated Preferred Stock and the holders of such other stock
shall share ratably in any such distribution in proportion to the full respective distributions to
which they are entitled.

(c) Residual Distributions. If the Liquidation Preference has been paid in full to all
holders of Designated Preferred Stock and the Corresponding amounts payable with respect of
any other stock of the Issuer ranking equally with Designated Preferred Stock as to such
distribution has been paid in full, the holders of other stock of the Issuer shall be entitled to
receive all remaining assets of the Issuer (or proceeds thereof) according to their respective rights
and preferences.

(d) — Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this
Section 4, the merger or consolidation of the Issuer with any other corporation or other entity,
including a merger or consolidation in which the holders of Designated Preferred Stock receive
cash, securities or other property for their shares, or the sale, lease or exchange (for cash,
securities or other property) of all or substantially all of the assets of the Issuer, shall not
constitute a liquidation, dissolution or winding up of the Issuer.

Section 5. Redemption.

(a) Optional Redemption. Except as provided below, the Designated Preferred Stock
may not be redeemed prior to the first Dividend Payment Date falling on or after the third
anniversary of the Original Issue Date. On or after the first Dividend Payment Date falling on or
after the third anniversary of the Original Issue Date, the Issuer, at its option, subject to the
approval of the Appropriate Federal Banking Agency, may redeem, in whole or in part, at any
time and from time to time, out of funds legally available therefor, the shares of Designated
Preferred Stock at the time outstanding, upon notice given as provided in Section 5(c) below, at a
redemption price equal to the sum of (i) the Liquidation Amount per share and (ii) except as
otherwise provided below, any accrued and unpaid dividends (including, if applicable as
provided in Section 3(a) above, dividends on such amount) (regardless of whether any dividends
are actually declared) to, but excluding, the date fixed for redemption.

Notwithstanding the foregoing, prior to the first Dividend Payment Date falling on or
after the third anniversary of the Original Issue Date, the Issuer, at its option, subject to the
approval of the Appropriate Federal Banking Agency, may redeem, in whole or in part, at any
time and from time to time, the shares of Designated Preferred Stock at the time outstanding,
upon notice given as provided in Section 5(c) below, at a redemption price equal to the sum of (i)
the Liquidation Amount per share and (ii) except as otherwise provided below, any accrued and
unpaid dividends (including, if applicable as provided in Section 3(a) above, dividends on such
amount) (regardless of whether any dividends are actually declared) to, but excluding, the date
fixed for redemption: provided that (x) the Issuer (or any successor by Business Combination)
has received aggregate gross proceeds of not less than the Minimum Amount (plus the
“Minimum Amount” as defined in the relevant certificate of designations for each other
outstanding series of preterred stock of such successor that was originally issued to the United
States Department of the Treasury (the “Successor Preferred Stock”) in connection with the
Troubled Asset Relief Program Capital Purchase Program) from one or more Qualified Equity
Offerings (including Qualified Equity Offerings of such successor), and (y) the aggregate

Ass

 Sngat



OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON
TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE
AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE
INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE
ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT
BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH
SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE
WITH SAID AGREEMENT WILL BE VOID.”

(b) In addition, the Investor agrees that all certificates or other instruments
representing the Preferred Shares and the Warrant Shares will bear a legend substantially to the
following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE NOT SAVINGS
ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS OF A BANK AND ARE NOT
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE
A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER
SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO
AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.
EACH PURCHASER OF THE SECURITIES REPRESENTED BY THIS
INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
1444 THEREUNDER. ANY TRANSFEREE OF THE SECURITIES REPRESENTED
BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT
IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 1444
UNDER THE SECURITIES ACT), (2) AGREES THAT IT WILL NOT OFFER, SELL
OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY THIS
INSTRUMENT EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT
WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO LONG
AS THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE
FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER

-16-

FIST) N02 HULLS AD LomRaT 9


the extent such law is applicable, and otherwise in accordance with the laws of the State of
New York applicable to contracts made and to be performed entirely within such State.
Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the
United States District Court for the District of Columbia and the United States Court of
Federal Claims for any and all civil actions, suits or Proceedings arising out of or relating
to this Agreement or the Warrant or the transactions contemplated hereby or thereby, and
(b) that notice may be served upon (i) the Company at the address and in the manner set
forth for notices to the Company in Section 5.6 and (ii) the Investor in accordance with
federal law. To the extent permitted by applicable law, each of the parties hereto hereby
unconditionally waives trial by jury in any civil legal action or proceeding relating to this
Agreement or the Warrant or the transactions contemplated hereby or thereby.

5.6 Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on
the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices to the Company shall be delivered as set forth in Schedule A, or
pursuant to such other instruction as may be designated in writing by the Company to the
Investor. All notices to the Investor shall be delivered as set forth below, or pursuant to such
other instructions as may be designated in writing by the Investor to the Company.

If to the Investor:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW, Room 2312

Washington, D.C. 20220

Attention: Assistant General Counsel (Banking and Finance)
Facsimile: (202) 622-1974

5.7 Definitions

(a) When a reference is made in this Agreement to a subsidiary of a person, the term
“subsidiary” means any corporation, partnership, joint venture, limited liability company or other
entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which
a majority of the voting securities or other Voting interests, or a majority of the securities or other
interests of which having by their terms ordinary voting power to elect a majority of the board of
directors or persons performing similar functions with respect to such entity, is directly or
indirectly owned by such person and/or one or more subsidiaries thereof.

(b) The term “Affiliate” means, with Tespect to any person, any person directly or
indirectly controlling, controlled by or under common control with, such other person. For
Purposes of this definition, “controf” (including, with correlative meanings, the terms “controlled
by” and Sunder common control w ith’) when used with respect to any person, means the
possession, directly or indirectly, of the power to cause the direction of management and/or

BEMIS ARES VEY cog


ANNEX D

OF OPINION

(a) The Company has been duly incorporated and is validly existing as a corporation
in good standing under the laws of the state of its incorporation.

{b) The Preferred Shares have been duly and validly authorized, and, when issued and
delivered pursuant to the Agreement, the Preferred Shares will be duly and validly issued and
fully paid and non-assessable, will not be issued in violation of any preemptive rights, and will
rank pari passu with or senior to all other series or classes of Preferred Stock issued on the
Closing Date with respect to the payment of dividends and the distribution of assets in the event
of any dissolution, liquidation or winding up of the Company.

(c) The Warrant has been duly authorized and, when executed and delivered as
contemplated by the Agreement, will constitute a valid and legally binding obligation of the
Company enforceable against the Company in accordance with its terms, except as the same may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and general equitable principles,
regardless of whether such enforceability is considered in a proceeding at law or in equity.

(d) The shares of Warrant Preferred Stock issuable upon exercise of the Warrant have
been duly authorized and reserved for issuance upon exercise of the Warrant and when so issued
in accordance with the terms of the Warrant will be validly issued, fully paid and non-assessable,
and will rank pari passu with or senior to all other series or classes of Preferred Stock, whether
or not issued or outstanding, with respect to the payment of dividends and the distribution of
assets in the event of any dissolution, liquidation or winding up of the Company.

(e) The Company has the corporate power and authority to execute and deliver the
Agreement and the Warrant and to carry out its obligations thereunder (which includes the
issuance of the Preferred Shares, Warrant and Warrant Shares).

( The execution, delivery and performance by the Company of the Agreement and
the Warrant and the consummation of the transactions contemplated thereby have been duly
authorized by all necessary corporate action on the part of the Company and its stockholders, and
no further approval or authorization is required on the part of the Company.

(g) The Agreement is a valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as the same may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and general equitable principles, regardless of whether
such enforceability is considered in a proceeding at law or in equity; provided, however, such
counsel need express no opinion with respect to Section 4.5(h) or the severability provisions of
the Agreement insofar as Section 4.5(h) is concerned.

UNL OAUTH VU Deetendy


OER Laine AL VS

Article V

Miscellaneous,

Termination... cecccccccsessccssecetescesseeneeee
Survival of Representations and Warranties
Amendment...
Waiver of Conditions
Governing Law: Submission to Ju isdiction, Ete.
Notices .
Definitions.
Assignment .
Severability .
No Third Party Beneficiarie:

Sunisar a


“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any
successor statute, and the rules and regulations promulgated thereunder.

“Exercise Price” means the amount set forth in Item 2 of Schedule A hereto.
“Expiration TimeTM has the meaning set forth in Section 3

“Issue Date” means the date set forth in Item 3 of Schedule A hereto.
“Liquidation Amount” means the amount set forth in [tem 4 of Schedule A hereto.

“Original Warrantholder” means the United States Department of the Treasury. Any
actions specified to be taken by the Original Warrantholder hereunder may only be taken by such
Person and not by any other Warrantholder,

“Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used
in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

“Preferred Stock” means the series of perpetual preferred stock set forth in Item 5 of
Schedule A hereto.

“Purchase Agreement” means the Securities Purchase Agreement — Standard Terms
incorporated into the Letter Agreement, dated as of the date set forth in Item 6 of Schedule A
hereto, as amended from time to time, between the Company and the United States Department
of the Treasury (the “Letter Agreement”), including all annexes and schedules thereto.

“Regulatory Approvals” with Tespect to the Warrantholder, means, to the extent
applicable and required to permit the Warrantholder to exercise this Warrant for shares of
Preferred Stock and to own such Preferred Stock without the Warrantholder being in violation of
applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of,
filings and registrations with, notifications to, or expiration or termination of any applicable
waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
and the rules and regulations thereunder.

“SEC” means the U.S. Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute,
and the rules and regulations promulgated thereunder.

“Shares” has the meaning set forth in Section 2.
“WarrantholderTM has the meaning set forth in Section 2.

“Warrant” means this Warrant, issued pursuant to the Purchase Agreement.

2. Number of Shares: Exercise Price. This certifies that, for value received, the

United States Department of the Treasury or its permitted assigns (the “Warrantholder”) is
enutled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the

BR on aN Sgt t


ANNEX E

FORM OF WARRANT TO PURCHASE PREFERRED STOCK

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT OR SUCH LAWS. THIS INSTRUMENT IS ISSUED SUBJECT TO
THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES
PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE
INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE
ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE
SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID
AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID

AGREEMENT WILL BE VOID.

WARRANT
to purchase

Shares of Preferred Stock

of

Issue Date:

1 Definitions. Unless the context otherwise requires, when used herein the
following terms shall have the meanings indicated.

“Board of Directors” means the board of directors of the Company, including any duly
authorized committee thereof.

“business day” means any day except Saturday, Sunday and any day on which banking
institutions in the State of New York generally are authorized or required by law or other
governmental actions to close.

“Charter” means, with respect to any Person, its certificate or articles of incorporation,
articles of association, or similar organizational document.

“Company” means the Person whose name, corporate or other organizational form and
Jurisdiction of organization is set forth in Item | of Schedule A hereto

DEVE MS RAE ad Dos tele


time. The Company will use reasonable best efforts to ensure that the Shares may be issued
without violation of any applicable law or regulation or of any requirement of any securities
exchange on which the Shares are listed or traded.

5. No Rights as Stockholders: Transfer Books. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a stockholder of the Company Prior to the
date of exercise hereof. The Company will at no time close its transfer books against transfer of
this Warrant in any manner which interferes with the timely exercise of this Warrant.

6. Charges, Taxes and Expenses. Issuance of certificates for Shares to the

Warrantholder upon the exercise of this Warrant shall be made without charge to the
Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance
of such certificates, all of which taxes and expenses shall be paid by the Company.

7. Transfer/Assignment.

(A) Subject to compliance with clause (B) of this Section 7, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company by the registered
holder hereof in person or by duly authorized attorney, and a new warrant shall be made and
delivered by the Company, of the same tenor and date as this Warrant but registered in the name
of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency
of the Company described in Section 3. All expenses (other than stock transfer taxes) and other
charges payable in connection with the preparation, execution and delivery of the new warrants
pursuant to this Section 7 shall be paid by the Company.

(B) The transfer of the Warrant and the Shares issued upon exercise of the Warrant
are subject to the restrictions set forth in Section 4.4 of the Purchase Agreement. If and for so
long as required by the Purchase Agreement, this Warrant shall contain the legends as set forth in
Section 4.2(a) of the Purchase Agreement.

8. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the
surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like
tenor and representing the right to purchase the same aggregate number of Shares. The
Company shall maintain a registry showing the name and address of the Warrantholder as the
registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in
accordance with its terms, at the office of the Company, and the Company shall be entitled to
rely in all respects, prior to written notice to the contrary, upon such registry.

9. Loss, Theft, Destruction or Mutilation of Warrant, Upon receipt by the Company
+oss,_Thett, Destruction or Mutilation of Warrant

of evidence reasonably satisfactory to it of the loss, theft. destruction or mutilation of this
Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity
or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such
lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same aggregate number of Shares as provided for in such lost, stolen,
destroyed or mutilated Warrant.



(0) make and keep public information available, as those terms are understood
and defined in Rule 144(c)(1) or any similar or analogous rule promulgated under the
Securities Act, at all times after the Signing Date;

(ii) (A) file with the SEC, in a timely manner, all reports and other documents
required of the Company under the Exchange Act, and (B) if at any time the Company is
not required to file such reports, make available, upon the request of any Holder, such
information necessary to permit sales pursuant to Rule 144A. (including the information
required by Rule 144A(d)(4) under the Securities Act);

(iii) so long as the Investor or a Holder owns any Registrable Securities,
furnish to the Investor or such Holder forthwith upon request: a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 under the
Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly
report of the Company; and such other reports and documents as the Investor or Holder
may reasonably request in availing itself of any rule or regulation of the SEC allowing it
to sell any such securities to the public without registration; and

(iv) _ take such further action as any Holder may reasonably request, all to the
extent required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act.

(I) As used in this Section 4.5, the following terms shall have the following

respective meanings:

(i) “Holder” means the Investor and any other holder of Registrable
Securities to whom the registration rights conferred by this Agreement have been
transferred in compliance with Section 4.5(h) hereof,

(ii) “Holders Counsel” means one counsel for the selling Holders chosen by
Holders holding a majority interest in the Registrable Securities being registered.

(iii) “Register,” “registered,” and “registration” shall refer to a registration
effected by preparing and (A) filing a registration statement or amendment thereto in
compliance with the Securities Act and applicable rules and regulations thereunder, and
the declaration or ordering of effectiveness of such registration statement or amendment
thereto or (B) filing a prospectus and/or prospectus supplement in respect of an
appropriate effective registration statement on Form S-3.

(iv) “Registrable Securities” means (A) all Preferred Shares, (B) the Warrant
(subject to Section 4.5(q)) and (C) any equity securities issued or issuable directly or
indirectly with respect to the securities referred to in the foregoing clauses (A) or (B) by
way of conversion, exercise or exchange thereof, including the Warrant Shares, or share
dividend or share split or in connection with a combination of shares, recapitalization,
reclassification, merger, amalgamation, arrangement, consolidation or other

-27-



expected to have a Company Material Adverse Effect, to the Company's knowledge, no other
person is infringing, diluting, misappropriating or violating, nor has the Company or any or the
Company Subsidiaries sent any written communications since January 1, 2006 alleging that any
person has infringed, diluted, misappropriated or violated, any of the Proprietary Rights owned
by the Company and the Company Subsidiaries.

(v) Brokers and Finders. No broker, finder or investment banker is entitled to any
financial advisory, brokerage, finder’s or other fee or commission in connection with this
Agreement or the Warrant or the transactions contemplated hereby or thereby based upon
arrangements made by or on behalf of the Company or any Company Subsidiary for which the
Investor could have any liability.

Article UL
Covenants

3.1 Commercially Reasonable Efforts. Subject to the terms and conditions of this

Agreement, each of the parties will use its commercially reasonable efforts in good faith to take,
or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or
desirable, or advisable under applicable laws, so as to permit consummation of the Purchase as
promptly as practicable and otherwise to enable consummation of the transactions contemplated
hereby and shall use commercially reasonable efforts to cooperate with the other party to that
end.

3.2 Expenses. Unless otherwise provided in this Agreement or the Warrant, each of
the parties hereto will bear and pay all costs and expenses incurred by it or on its behalf in
connection with the transactions contemplated under this Agreement and the Warrant, including
fees and expenses of its own financial or other consultants, investment bankers, accountants and

counsel.

3.3 Sufficiency of Authorized Warrant Preferred Stock: Exchange Listing.

(a) During the period from the Closing Date until the date on which the Warrant has
been fully exercised, the Company shall at all times have reserved for issuance, free of
preemptive or similar rights, a sufficient number of authorized and unissued Warrant Shares to

effectuate such exercise.

(b) If the Company lists its Common Stock on any national securities exchange, the
Company shall, if requested by the Investor, promptly use its reasonable best efforts to cause the
Preferred Shares and Warrant Shares to be approved for listing on a national securities exchange
as promptly as practicable following such request.

3.4 Certain Notifications Until Closing. From the Signing Date until the Closing, the
Company shall promptly notify the Investor of (i) any fact, event or circumstance of which it is
aware and which would reasonably be expected to cause any representation or warranty of the
Company contained in this Agreement to be untrue or inaccurate in any material respect or to

-13-

HELA AGED LT NYT Jodos AP


of the Registrable Securities to be distributed; provided that to the extent appropriate and
permitted under applicable law, such Holders shall consider the qualifications of any
broker-dealer Affiliate of the Company in selecting the lead underwniters in any such
distribution.

(ill) The Company shall not be required to effect a registration (including a
resale of Registrable Securities from an effective Shelf Registration Statement) or an
underwritten offering pursuant to Section 4.5(b): (A) with respect to securities that are
not Registrable Securities; or (B) if the Company has notified the Investor and all other
Holders that in the good faith judgment of the Board of Directors, it would be materially
detrimental to the Company or its securityholders for such registration or underwritten
offering to be effected at such time, in which event the Company shall have the right to
defer such registration for a period of not more than 45 days after receipt of the request of
the Investor or any other Holder; provided that such right to delay a registration or
underwritten offering shall be exercised by the Company (1) only if the Company has
generally exercised (or is concurrently exercising) similar black-out rights against holders
of similar securities that have registration rights and (2) not more than three times in any
12-month period and not more than 90 days in the aggregate in any 12-month period.

(iv) If during any period when an effective Shelf Registration Statement is not
available, the Company proposes to register any of its equity securities, other than a
registration pursuant to Section 4.5(b)(i) or a Special Registration, and the registration
form to be filed may be used for the registration or qualification for distribution of
Registrable Securities, the Company will give prompt written notice to the Investor and
all other Holders of its intention to effect such a registration (but in no event less than ten
days prior to the anticipated filing date) and will include in such registration all
Registrable Securities with respect to which the Company has received written requests
for inclusion therein within ten business days after the date of the Company’s notice (a
“Piggyback Registration”). Any such person that has made such a written request may
withdraw its Registrable Securities from such Piggyback Registration by giving written
notice to the Company and the managing underwriter, if any, on or before the fifth
business day prior to the planned effective date of such Piggyback Registration. The
Company may terminate or withdraw any registration under this Section 4.5(b)(iv) prior
to the effectiveness of such registration, whether or not Investor or any other Holders
have elected to include Registrable Securities in such registration.

(v) If the registration referred to in Section 4.5(b)(iv) is proposed to be
underwritten, the Company will so advise Investor and all other Holders as a part of the
written notice given pursuant to Section 4.5(b)(iv). In such event, the right of Investor
and all other Holders to registration pursuant to Section 4.5(b) will be conditioned upon
such persons’ participation in such underwriting and the inclusion of such person's
Registrable Securities in the underwriting if such securities are of the same class of
securities as the securities to be offered in the underwritten offering, and each such
person will (together with the Company and the other persons distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with

-19-


(ii) as soon as available after the end of the first, second and third quarterly
periods in each fiscal year of the Company, a copy of any quarterly reports provided to
other stockholders of the Company or Company management.

(c) The Investor will use reasonable best efforts to hold, and will use reasonable best
efforts to cause its agents, consultants, contractors and advisors to hold, in contidence all non-
public records, books, contracts, instruments, computer data and other data and information
(collectively, “/aformation”) concerning the Company furnished or made available to it by the
Company or its representatives pursuant to this Agreement (except to the extent that such
information can be shown to have been (i) previously known by such party on a non-confidential
basis, (ii) in the public domain through no fault of such party or (iii) later lawfully acquired from
other sources by the party to which it was furnished (and without violation of any other
confidentiality obligation); provided that nothing herein shall prevent the Investor from
disclosing any Information to the extent required by applicable laws or regulations or by any
subpoena or similar legal process.

(d) The Investor’s information rights pursuant to Section 3.5(b) may be assigned by
the Investor to a transferee or assignee of the Purchased Securities or the Warrant Shares or with
a liquidation preference or, in the case of the Warrant, the liquidation preference of the
underlying shares of Warrant Preferred Stock, no less than an amount equal to 2% of the initial
aggregate liquidation preference of the Preferred Shares.

Article IV
Additional Agreements

4.1 Purchase for Investment. The Investor acknowledges that the Purchased Securities
and the Warrant Shares have not been registered under the Securities Act or under any state
securities laws. The Investor (a) is acquiring the Purchased Securities pursuant to an exemption
from registration under the Securities Act solely for investment with no present intention to
distribute them to any person in violation of the Securities Act or any applicable U.S. state
securities laws, (b) will not sell or otherwise dispose of any of the Purchased Securities or the
Warrant Shares, except in compliance with the registration requirements or exemption provisions
of the Securities Act and any applicable U.S. state securities laws, and (c) has such knowledge
and experience in financial and business matters and in investments of this type that it is capable
of evaluating the merits and risks of the Purchase and of making an informed investment

decision.

42 Legends.

(a) The Investor agrees that all certificates or other instruments representing the
Warrant will bear a legend substantially to the following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD

-15-

STEWED LENS LOHR


reorganization, provided that, once issued, such securities will not be Registrable
Securities when (1) they are sold pursuant to an effective registration statement under the
Securities Act, (2) except as provided below in Section 4.5(p), they may be sold pursuant
to Rule 144 without limitation thereunder on volume or manner of sale, (3) they shall
have ceased to be outstanding or (4) they have been sold ina private transaction in which
the transferor's rights under this Agreement are not assigned to the transferee of the
securities. No Registrable Securities may be registered under more than one registration
statement at any one time.

(v) “Registration Expenses” mean all expenses incurred by the Company in
effecting any registration pursuant to this Agreement (whether or not any registration or
prospectus becomes effective or final) or otherwise complying with its obligations under
this Section 4.5, including all registration, filing and listing fees, printing expenses, fees
and disbursements of counsel for the Company, blue sky fees and expenses, expenses
incurred in connection with any “road show”, the reasonable fees and disbursements of
Holders’ Counsel, and expenses of the Company’s independent accountants in
connection with any regular or special reviews or audits incident to or required by any
such registration, but shall not include Selling Expenses.

(vi) “Rule 144", “Rule 1444”, “Rule 159A”, “Rule 405” and “Rule 415” mean,
in each case, such rule promulgated under the Securities Act (or any successor provision),
as the same shall be amended from time to time.

(vii) “Selling Expenses” mean all discounts, selling commissions and stock
transfer taxes applicable to the sale of Registrable Securities and fees and disbursements
of counsel for any Holder (other than the fees and disbursements of Holders’ Counsel
included in Registration Expenses).

(m) _ Atany time, any holder of Securities (including any Holder) may elect to forfeit
its rights set forth in this Section 4.5 from that date forward; provided, that a Holder forfeiting
such rights shall nonetheless be entitled to participate under Section 4.5(b)(iv) - (vi) in any
Pending Underwritten Offering to the same extent that such Holder would have been entitled to
if the holder had not withdrawn; and provided, further, that no such forfeiture shall terminate a
Holder’s rights or obligations under Section 4.5(g) with respect to any prior registration or
Pending Underwritten Offering. “Pending Underwritten Offering” means, with respect to any
Holder forfeiting its rights pursuant to this Section 4.5(m), any underwritten offering of
Registrable Securities in which such Holder has advised the Company of its intent to register its
Registrable Securities either pursuant to Section 4.5(b)(ii) or 4.5(b)(iv) prior to the date of such
Holder's forfeiture.

(n) Specific Performance. The parties hereto acknowledge that there would be no
adequate remedy at law if the Company fails to perform any of its obligations under this Section
4.5 and that the Investor and the Holders from time to time may be irreparably harmed by any
such failure, and accordingly agree that the Investor and such Holders, in addition to any other
remedy to which they may be entitled at law or in equity, to the fullest extent permitted and

-28-

HU LAND F OTE T SGM8


the Company or any Company Subsidiary that would, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect.

(n) Employee Benefit Matters. Except as would not reasonably be expected to have,
either individually or in the aggregate, a Company Material Adverse Effect: (A) each “employee
benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ER/SATM)) providing benefits to any current or former employee,
officer or director of the Company or any member of its “Controlled Group” (defined as any
organization which is a member of a controlled group of corporations within the meaning of
Section 414 of the Internal Revenue Code of 1986, as amended (the “Cude”)) that is sponsored,
maintained or contributed to by the Company or any member of its Controlled Group and for
which the Company or any member of its Controlled Group would have any liability, whether
actual or contingent (each, a “Plan”) has been maintained in compliance with its terms and with
the requirements of all applicable statutes, rules and regulations, including ERISA and the Code;
(B) with respect to each Plan subject to Title IV of ERISA (including, for purposes of this clause
(B), any plan subject to Title IV of ERISA that the Company or any member of its Controlled
Group previously maintained or contributed to in the six years prior to the Signing Date), (1) no
“reportable event” (within the meaning of Section 4043(c) of ERISA), other than a reportable
event for which the notice period referred to in Section 4043(c) of ERISA has been waived, has
occurred in the three years prior to the Signing Date or is reasonably expected to occur, (2) no
“accumulated funding deficiency” (within the meaning of Section 302 of ERISA or Section 412
of the Code), whether or not waived, has occurred in the three years prior to the Signing Date or
is reasonably expected to occur, (3) the fair market value of the assets under each Plan exceeds
the present value of all benefits accrued under such Plan (determined based on the assumptions
used to fund such Plan) and (4) neither the Company nor any member of its Controlled Group
has incurred in the six years prior to the Signing Date, or reasonably expects to incur, any
liability under Title [V of ERISA (other than contributions to the Plan or premiums to the PBGC
in the ordinary course and without default) in respect of a Plan (including any Plan that is a
“multiemployer plan”, within the meaning of Section 4001(c)(3) of ERISA); and (C) each Plan
that is intended to be qualified under Section 401(a) of the Code has received a favorable
determination letter from the Internal Revenue Service with respect to its qualified status that has
not been revoked, or such a determination letter has been timely applied for but not received by
the Signing Date, and nothing has occurred, whether by action or by failure to act, which could
reasonably be expected to cause the loss, revocation or denial of such qualified status or
favorable determination letter.

(0) Taxes, Except as would not, individually or in the aggregate, reasonably be
expected to have a Company Material Adverse Effect, (i) the Company and the Company
Subsidiaries have filed all federal, state, local and foreign income and franchise Tax returns
required to be filed through the Signing Date, subject to permitted extensions, and have paid all
Taxes due thereon, and (ii) no Tax deficiency has been determined adversely to the Company or
any of the Company Subsidiaries, nor does the Company have any knowledge of any Tax
deficiencies. “Tax” or “Taxes” means any federal, state, local or foreign income, gross receipts,
property. sales, use, license, excise, franchise, employment, payroll, withholding, alternative or
add on minimum, ad valorem, transfer or excise tax, or any other tax, custom, duty,

-10-

SARL cD HEA Y A



DISCLOSURE SCHEDULE

List any exceptions to the representation and warranty in Section 2.2(g) of the Securities
Purchase Agreement — Standard Terms.

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ve. 12180810.2

UST Sequence #139

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Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up
to an aggregate of the number of fully paid and nonassessable shares of Preferred Stock set forth
in Item 7 of Schedule A hereto (the “Shares”), ata purchase price per share of Preferred Stock
equal to the Exercise Price.

3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Company on the date hereof, but in no event later
than 5:00 p.m., New York City time on the tenth anniversary of the Issue Date (the “Expiration
Time"), by (A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly
completed and executed on behalf of the Warrantholder, at the principal executive office of the
Company located at the address set forth in Item 8 of Schedule A hereto (or such other office or
agency of the Company in the United States as it may designate by notice in writing to the
Warrantholder at the address of the Warrantholder appearing on the books of the Company), and
(B) payment of the Exercise Price for the Shares thereby purchased, by having the Company
withhold, from the shares of Preferred Stock that would otherwise be delivered to the
Warrantholder upon such exercise, shares of Preferred Stock issuable upon exercise of the
Warrant with an aggregate Liquidation Amount equal in value to the aggregate Exercise Price as
to which this Warrant is so exercised.

If the Warrantholder does not exercise this Warrant in its entirety, the
Warrantholder will be entitled to receive from the Company within a reasonable time, and in any
event not exceeding three business days, a new warrant in substantially identical form for the
purchase of that number of Shares equal to the difference between the number of Shares subject
to this Warrant and the number of Shares as to which this Warrant is so exercised.
Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby
acknowledges and agrees that its exercise of this Warrant for Shares is subject to the condition
that the Warrantholder will have first received any applicable Regulatory Approvals.

4. Issuance of Shares: Authorization. Certificates for Shares issued upon exercise of

this Warrant will be issued in such name or names as the Warrantholder may designate and will
be delivered to such named Person or Persons within a reasonable time, not to exceed three
business days after the date on which this Warrant has been duly exercised in accordance with
the terms of this Warrant. The C ‘ompany hereby represents and warrants that any Shares issued
upon the exercise of this Warrant in accordance with the provisions of Section 3 will be duly and
validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and
charges (other than liens or charges created by the Warrantholder, income and franchise taxes
incurred in connection with the exercise of the Warrant or taxes in respect of any transfer
occurring contemporaneously therewith). The Company agrees that the Shares so issued will be
deemed to have been issued to the Warrantholder as of the close of business on the date on which
this Warrant and payment of the Exercise Price are delivered to the Company in accordance with
the terms of this Warrant, notwithstanding that the stock transfer books of the Company may
then be closed or certificates representing such Shares may not be actually delivered on such
date. The Company will at all times reserve and keep available. out of its authorized but
unissued preferred stock, solely for the purpose of providing for the exercise of this Warrant, the
aggregate number of shares of Preterred Stock then issuable upon exercise of this Warrant at any

3



Schedule A

STANDARD PROVISIONS

Section 1. General Matters. Each share of Designated Preferred Stock shall be identical
in all respects to every other share of Designated Preferred Stock. The Designated Preferred
Stock shall be perpetual, subject to the provisions of Section 5 of these Standard Provisions that
form a part of the Certificate of Designations. The Designated Preferred Stock shall rank equally
with Parity Stock and shall rank senior to Junior Stock with respect to the payment of dividends
and the distribution of assets in the event of any dissolution, liquidation or winding up of the

Issuer,

Section 2. Standard Definitions. As used herein with respect to Designated Preferred
Stock:

(a) “Appropriate Federal Banking Agency” means the “appropriate Federal banking

agency” with respect to the Issuer as defined in Section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1813(q)), or any successor provision.

(b) “Business Combination” means a merger, consolidation, statutory share
exchange or similar transaction that requires the approval of the Issuer's stockholders.

(c) “Business Day” means any day except Saturday, Sunday and any day on which
banking institutions in the State of New York generally are authorized or required by law or
other governmental actions to close.

(4) “Bylaws” means the bylaws of the Issuer, as they may be amended from time to
time.

(e) “Certificate of Designations” means the Certificate of Designations or comparable
instrument relating to the Designated Preferred Stock, of which these Standard Provisions form a

part, as it may be amended from time to time.

(f) “Charter” means the Issuer’s certificate or articles of incorporation, articles of
association, or similar organizational document.

(g) “Dividend Period” has the meaning set forth in Section 3(a).

(h) “Dividend Record Date” has the meaning set forth in Section 3(a).

(i) “Liquidation Preference” has the meaning set forth in Section 4(a).

0) “Original Issue Date” means the date on which shares of Designated Preferred

Stock are first issued.

(k) “Preferred Director” has the meaning set forth in Section 7(b).



1.2 Closing.

(a) On the terms and subject to the conditions set forth in this Agreement, the closing
of the Purchase (the “ClosingTM) will take place at the location specified in Schedule A, at the
time and on the date set forth in Schedule A or as soon as practicable thereafter, or at such other
place, time and date as shall be agreed between the Company and the Investor. The time and date
on which the Closing occurs is referred to in this Agreement as the “Closing Date”.

(b) Subject to the fulfillment or waiver of the conditions to the Closing in this Section
1.2, at the Closing the Company will deliver the Preferred Shares and the Warrant, in each case
as evidenced by one or more certificates dated the C losing Date and bearing appropriate legends
as hereinafter provided for, in exchange for Payment in full of the Purchase Price by wire
transfer of immediately available United States funds to a bank account designated by the

Company on Schedule A.

(©) The respective obligations of each of the Investor and the Company to
consummate the Purchase are subject to the fulfillment (or waiver by the Investor and the
Company, as applicable) prior to the Closing of the conditions that (i) any approvals or
authorizations of all United States and other governmental, regulatory or judicial authorities
(collectively, “Governmental Entities”) required for the consummation of the Purchase shall
have been obtained or made in form and substance reasonably satisfactory to each party and shall
be in full force and effect and all waiting periods required by United States and other applicable
law, if any, shall have expired and (ii) no provision of any applicable United States or other law
and no judgment, injunction, order or decree of. any Governmental Entity shall prohibit the
purchase and sale of the Purchased Securities as contemplated by this Agreement.

(d) The obligation of the Investor to consummate the Purchase is also subject to the
fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following
conditions:

(i) (A) the representations and warranties of the Company set forth in (x)
Section 2.2(g) of this Agreement shall be true and correct in all respects as though made
on and as of the Closing Date, (y) Sections 2.2(a) through (f) shall be true and correct in
all material respects as though made on and as of the Closing Date (other than
representations and warranties that by their terms speak as of another date, which
representations and warranties shall be true and correct in all material respects as of such
other date) and (z) Sections 2.2(h) through (v) (disregarding all qualifications or
limitations set forth in such representations and warranties as to “materiality”, “Company
Material Adverse Effect” and words of similar import) shall be true and correct as though
made on and as of the Closing Date (other than representations and warranties that by
their terms speak as of another date, which representations and warranties shall be true
and correct as of such other date), except to the extent that the failure of such
representations and warranties referred to in this Section 1.2(d)(i)( AMZ) to be so true and
correct, individually or in the aggregate, does not have and would not reasonably be
expected to have a Company Material Adverse Effect and (B) the Company shall have

2.

Pm LEN Y92 Tmt 9



disposition of such securities as shall be required to effect the registered offering of their
Registrable Securities.

(h) Indemnification.

(i) The Company agrees to indemnify each Holder and, if a Holder is a
person other than an individual, such Holder's officers, directors, employees, agents,
representatives and Affiliates, and each Person, if any, that controls a Holder within the
meaning of the Securities Act (each, an “/ndemnitee”), against any and all losses, claims,
damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and
disbursements of attorneys and other professionals incurred in connection with
investigating, defending, settling, compromising or paying any such losses, claims,
damages, actions, liabilities, costs and expenses), joint or several, arising out of or based
upon any untrue statement or alleged untrue statement of material fact contained in any
registration statement, including any preliminary Prospectus or final prospectus contained
therein or any amendments or supplements thereto or any documents incorporated therein
by reference or contained in any free writing prospectus (as such term is defined in Rule
405) prepared by the Company or authorized by it in writing for use by such Holder (or
any amendment or supplement thereto); or any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, that the Company
shall not be liable to such Indemnitee in any such case to the extent that any such loss,
claim, damage, liability (or action or proceeding in respect thereof) or expense arises out
of or is based upon (A) an untrue statement or omission made in such registration
statement, including any such preliminary prospectus or final prospectus contained
therein or any such amendments or supplements thereto or contained in any free writing
prospectus (as such term is defined in Rule 405) prepared by the Company or authorized
by it in writing for use by such Holder (or any amendment or supplement thereto), in
reliance upon and in conformity with information regarding such Indemnitee or its plan
of distribution or ownership interests which was furnished in writing to the Company by
such Indemnitee for use in connection with such registration statement, including any
such preliminary prospectus or final prospectus contained therein or any such
amendments or supplements thereto, or (B) offers or sales effected by or on behalf of
such Indemnitee “by means of” (as defined in Rule 159A) a “free writing prospectus” (as
defined in Rule 405) that was not authorized in writing by the Company.

(ii) If the indemnification provided for in Section 4.5(h)(i) is unavailable to an
Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or
expenses referred to therein or is insufficient to hold the Indemnitee harmless as
contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall
contribute to the amount paid or payable by such Indemnitee as a result of such losses,
claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate
to reflect the relative fault of the Indemnitee, on the one hand, and the Company, on the
other hand, in connection with the statements or omissions which resulted in such losses,
claims, damages, actions, liabilities, costs or expenses as well as any other relevant

-25-

HUIS aE aemNAT


qualified as directors, the term of office of all Preferred Directors then in office shall terminate
immediately and the authorized number of directors shall be reduced by the number of Preferred
Directors elected pursuant hereto. Any Preferred Director may be removed at any time. with or
without cause. and any vacancy created thereby may be filled, only by the affirmative vote of the
holders a majority of the shares of Designated Preferred Stock at the time outstanding voting
separately as a class together with the holders of shares of Voting Parity Stock, to the extent the
voting rights of such holders described above are then exercisable. If the office of any Preferred
Director becomes vacant for any reason other than removal from office as aforesaid, the
remaining Preferred Director may choose a successor who shall hold office for the unexpired
term in respect of which such vacancy occurred.

(c) Class Voting Rights as to Particular Matters, So long as any shares of Designated

Preferred Stock are outstanding, in addition to any other vote or consent of stockholders required
by law or by the Charter, the vote or consent of the holders of at least 66 2/3% of the shares of
Designated Preferred Stock at the time outstanding, voting as a separate class, given in person or
by proxy, either in writing without a meeting or by vote at any meeting called for the purpose,
shall be necessary for effecting or validating:

(i) Authorization of Senior Stock. Any amendment or alteration of the
Certificate of Designations for the Designated Preferred Stock or the Charter to authorize
or create or increase the authorized amount of, or any issuance of, any shares of, or any
securities convertible into or exchangeable or exercisable for shares of, any class or series
of capital stock of the Issuer ranking senior to Designated Preferred Stock with respect to
either or both the payment of dividends and/or the distribution of assets on any
liquidation, dissolution or winding up of the Issuer;

Gi) Amendment of Designated Preferred Stock. Any amendment, alteration

or repeal of any provision of the Certificate of Designations for the Designated Preferred
Stock or the Charter (including, unless no vote on such merger or consolidation is
required by Section 7(c)(iii) below, any amendment, alteration or repeal by means of a
merger, consolidation or otherwise) so as to adversely affect the rights, preferences,
privileges or voting powers of the Designated Preferred Stock; or

(iii) Share Exchanges, Reclassifications. Mergers and Consolidations. Any
ignated

consummation of a binding share exchange or reclassification involving the Desi;
Preferred Stock, or of a merger or consolidation of the Issuer with another corporation or
other entity, unless in each case (x) the shares of Designated Preferred Stock remain
outstanding or, in the case of any such merger or consolidation with respect to which the
Issuer is not the surviving or resulting entity, are converted into or exchanged for
preference securities of the surviving or resulting entity or its ultimate parent, and (y)
such shares remaining outstanding or such preference securities, as the case may be, have
such rights. preferences, privileges and voting powers, and limitations and restrictions
thereof, taken as a whole, as are not materially less favorable to the holders thereof than
the rights, preferences, privileges and voting powers, and limitations and restrictions
thereof. of Designated Preterred Stock immediately prior to such consummation. taken as
a whole:



Section I. Replacement Certificates. The Issuer shall replace any mutilated certificate at
the holder's expense upon surrender of that certificate to the Issuer. The Issuer shall replace
certificates that become destroyed, stolen or lost at the holder's expense upon delivery to the
Issuer of reasonably satisfactory evidence that the certificate has been destroyed. stolen or lost.
together with any indemnity that may be reasonably required by the Issuer.

Section 12. Other Rights. The shares of Designated Preferred Stock shall not have any
rights, preferences, privileges or voting powers or relative, participating, optional or other special
rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the
Charter or as provided by applicable law.

A10

FSV Need


ANNEX C

FOR: F WAIVER

In consideration for the benefits I will receive as a result of my employer's participation in the
United States Department of the Treasury's TARP Capital Purchase Program, I hereby
voluntarily waive any claim against the United States or my employer for any changes to my
compensation or benefits that are required to comply with the regulation issued by the
Department of the Treasury as published in the Federal Register on October 20, 2008.

T acknowledge that this regulation may require modification of the compensation, bonus,
incentive and other benefit plans, arrangements, policies and agreements (including so-called
“golden parachute” agreements) that I have with my employer or in which I participate as they
relate to the period the United States holds any equity or debt securities of my employer acquired
through the TARP Capital Purchase Program.

This waiver includes all claims I may have under the laws of the United States or any state
related to the requirements imposed by the aforementioned regulation, including without
limitation a claim for any compensation or other payments I would otherwise receive, any
challenge to the process by which this regulation was adopted and any tort or constitutional
claim about the effect of these regulations on my employment relationship.

HEU ALG Sowing or


(C) of the issuance by the SEC of any stop order suspending the
effectiveness of any registration statement or the initiation of any proceedings for
that purpose;

(D) of the receipt by the Company or its legal counsel of any
notification with respect to the suspension of the qualification of the applicable
Registrable Securities for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose;

(E) of the happening of any event that requires the Company to make
changes in any effective registration statement or the prospectus related to the
registration statement in order to make the statements therein not misleading
(which notice shall be accompanied by an instruction to suspend the use of the
prospectus until the requisite changes have been made); and

(F) if at any time the representations and warranties of the Company
contained in any underwriting agreement contemplated by Section 4.5(d)(x) cease
to be true and correct.

(vii) Use its reasonable best efforts to prevent the issuance or obtain the
withdrawal of any order suspending the effectiveness of any registration statement
referred to in Section 4.5(d)(vi)(C) at the earliest practicable time.

(viii) Upon the occurrence of any event contemplated by Section 4.5(d)(v) or
4.5(d)(vi)(E), promptly prepare a post-effective amendment to such registration statement
or a supplement to the related prospectus or file any other required document so that, as
thereafter delivered to the Holders and any underwriters, the prospectus will not contain
an untrue statement of a material fact or omit to state any material fact necessary to make
the statements therein, in light of the circumstances under which they were made, not
misleading. If the Company notifies the Holders in accordance with Section 4.5(d)(vi)(E)
to suspend the use of the prospectus until the requisite changes to the prospectus have
been made, then the Holders and any underwriters shall suspend use of such prospectus
and use their reasonable best efforts to return to the Company all copies of such
prospectus (at the Company’s expense) other than permanent file copies then in such
Holders’ or underwriters’ possession. The total number of days that any such suspension
may be in effect in any 12-month period shall not exceed 90 days.

(ix) Use reasonable best efforts to procure the cooperation of the Company’s
transfer agent in settling any offering or sale of Registrable Securities, including with
respect to the transfer of physical stock certificates into book-entry form in accordance
with any procedures reasonably requested by the Holders or any managing
underwriter(s).

(x) Ifan underwritten offering is requested pursuant to Section 4.5(b)(ii),
enter into an underwriting agreement in customary form, scope and substance and take all

22.



IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
a duly authorized officer.

Dated:
COMPANY:

By:
Name:
Title:

Attest:

By:

Name:
Title:

[Signature Page to Warrant]



INDEX OF DEFINED TERMS

Term
Affiliate 5.7(b)
Agreement Recitals
Appropriate Federal Banking Agency 2.2(s)
Bank Holding Company 4.10
Bankruptcy Exceptions 2.2(d)
Benefit Plans 1.2(d)(iv)
Board of Directors 2.2(f)
Business Combination 5.8
business day 13
Capitalization Date 2.2(b)
Certificates of Designations 1.2(d)(iii)
Charter 1.2(d)(iii)
Closing 1.2(a)
Closing Date 1.2(a)
Code 2.2(n)
Common Stock 2.2(b)
Company Recitals
Company Financial Statements 2.2(h)
Company Material Adverse Effect 2.1(b)
Company Reports 2.2(i)(i)
Company Subsidiary; Company Subsidiaries 2.2(e)(ii)
control; controlled by; under common control with 5.7(b)
Controlled Group 2.2(n)
CPP Recitals
Disclosure Schedule 2.1(a)
EESA 1.2(d)(iv)
ERISA 2.2(n)
Exchange Act 44
Federal Reserve 4.10
GAAP 2.1(b)
Governmental Entities 1.2(c)
Holder 4.5(I)(i)
Holders’ Counsel 4.5(I)(ii)
Indemnitee 4.5(h)(i)
Information 3.5(c)
Investor Recitals
Junior Stock 4.7(f)
knowledge of the Company; Company’s knowledge 5.7(c)
Letter Agreement Recitals
officers S.7(c)
4.7(f)

Parity Stock

B82 Mam? vo 1 Domina



LIST OF ANNEXES

ANNEX A: FORM OF CERTIFICATE OF DESIGNATIONS FOR PREFERRED STOCK

ANNEX B: FORM OF CERTIFICATE OF DESIGNATIONS FOR WARRANT
PREFERRED STOCK.

ANNEX C: FORM OF WAIVER
ANNEX D: FORM OF OPINION

ANNEX E: FORM OF WARRANT

“iii

SVT Lam Shoe


governmental fee or other like assessment or charge of any kind whatsoever, together with any
interest or penalty, imposed by any Governmental Entity.

(p) Properties and Leases. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, the Company and the
Company Subsidiaries have good and marketable title to all real properties and all other
properties and assets owned by them, in each case free from liens, encumbrances, claims and
defects that would affect the value thereof or interfere with the use made or to be made thereof
by them. Except as would not, individually or in the aggregate, reasonably be expected to have a
Company Material Adverse Effect, the Company and the Company Subsidiaries hold all leased
real or personal property under valid and enforceable leases with no exceptions that would
interfere with the use made or to be made thereof by them.

(q)_ Environmental Liability. Except as would not, individually or in the aggregate,

reasonably be expected to have a Company Material Adverse Effect:

(i) there is no legal, administrative, or other proceeding, claim or action of
any nature seeking to impose, or that would reasonably be expected to result in the
imposition of, on the Company or any Company Subsidiary, any liability relating to the
release of hazardous substances as defined under any local, state or federal environmental
Statute, regulation or ordinance, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, pending or, to the Company’s knowledge,
threatened against the Company or any Company Subsidiary;

(ii) to the Company’s knowledge, there is no reasonable basis for any such
proceeding, claim or action; and

(iii) neither the Company nor any Company Subsidiary is subject to any
agreement, order, judgment or decree by or with any court, Governmental Entity or third
party imposing any such environmental liability.

(r) Risk Management Instruments. Except as would not, individually or in the

aggregate, reasonably be expected to have a Company Material Adverse Effect, all derivative
instruments, including, swaps, caps, floors and option agreements, whether entered into for the
Company’s own account, or for the account of one or more of the Company Subsidiaries or its or
their customers, were entered into (i) only in the ordinary course of business, (ii) in accordance
with prudent practices and in all material respects with all applicable laws, rules, regulations and
regulatory policies and (iii) with counterparties believed to be financially tesponsible at the time;
and each of such instruments constitutes the valid and legally binding obligation of the Company
or one of the Company Subsidiaries, enforceable in accordance with its terms, except as may be
limited by the Bankruptcy Exceptions. Neither the Company or the Company Subsidiaries, nor,
to the knowledge of the Company, any other party thereto, is in breach of any of its obligations
under any such agreement or arrangement other than such breaches that would not, individually
or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.



SECURITIES PURCHASE AGREEMENT - STANDARD TERMS
Recitals:

WHEREAS, the United States Department of the Treasury (the “Investor”) may from
time to time agree to purchase shares of preferred stock and warrants from eligible financial
institutions which elect to participate in the Troubled Asset Relief Program Capital Purchase
Program (“CPP”);

WHEREAS, an eligible financial institution electing to participate in the CPP and issue
securities to the Investor (referred to herein as the “C ‘ompany”) shall enter into a letter agreement
(the “Letter Agreement”) with the Investor which incorporates this Securities Purchase
Agreement — Standard Terms;

WHEREAS, the Company agrees to expand the flow of credit to U.S. consumers and
businesses on competitive terms to promote the sustained growth and vitality of the U.S.

economy;

WHEREAS, the Company agrees to work diligently, under existing programs, to modify
the terms of residential mortgages as appropriate to strengthen the health of the U.S, housing

market;

WHEREAS, the Company intends to issue in a private placement the number of shares of

the series of its Preferred Stock (Preferred Stock”) set forth on Schedule A to the Letter
Agreement (the “Preferred Shares”) and a warrant to purchase the number of shares of the series

of its Preferred Stock (“Warrant Preferred Stock”) set forth on Schedule A to the Letter
Agreement (the “Warrant” and, together with the Preferred Shares, the “Purchased Securities”)
and the Investor intends to purchase (the “Purchase”) from the Company the Purchased

Securities; and

WHEREAS, the Purchase will be governed by this Securities Purchase Agreement —
Standard Terms and the Letter Agreement, including the schedules thereto (the “Schedules’),
specifying additional terms of the Purchase. This Securities Purchase Agreement — Standard
Terms (including the Annexes hereto) and the Letter Agreement (including the Schedules
thereto) are together referred to as this “Agreement”. All references in this Securities Purchase
Agreement ~ Standard Terms to “Schedules” are to the Schedules attached to the Letter

Agreement.

NOW, THEREFORE, in consideration of the Premises, and of the representations,
warranties, covenants and agreements set forth herein, the parties agree as follows:

Article I
Purchase; Closing

Lt Purchase. On the terms and subject to the conditions set forth in this Agreement,
the Company agrees to sell to the Investor, and the Investor agrees to purchase from the
Company, at the Closing (as hereinafter defined), the Purchased Securities for the price set forth
on Schedule A (the “Purchase Price”).

PICA ARID ELENS 02 Dude 9


[Financial statements previously provided to Investor are redacted]


SCHEDULE A

ADDITIONAL TERMS AND CONDITIONS

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Name of the Company: Mission Valley Bancorp

Corporate or other organizational form: Corporation

Jurisdiction of Organization: California

Appropriate Federal Banking Agency: Federal Reserve Bank of San Francisco

Notice Information: Tamara G. Gumey
Mission Valley Bancorp
9116 Suniand Boulevard
Sun Valley, CA 91352
Phone 818-394-2330
Fax 818-394-2380
Email tgurne issionvalleybank.com

Terms of the Purchase: i
Series of Preferred Stock Purchased: A

Per Share Liquidation Preference of Preferred Stock: $1,000.00

Number of Shares of Preferred Stock Purchased: 5,500
Dividend Payment Dates on the Preferred Stock: 2/15, 5/15, 8/15, HI/15
Purchase Price: $5,500,000

Closing:

Location of Closing: — Telephonic

Time of Closing: TBD
Date of Closing: December 23, 2008
Wire Information for Closing: ABA Number: Hy

Bank:

=
Account Name: 2 Unaeppemeene

Account Number:

MVB-12180820.2

UST Sequence #139 i


SCHEDULE C i

LITIGATION |

List any exceptions to the representation and warranty in Section 2.2(1) of the Securities |

Purchase Agreement — Standard Terms. ]

|

'

rr per ne —— sonar SERS Areneerwtnaaed — i

rn 2 .
eee.

i

Mv8-12180810.2

UST Sequence #139


TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY
OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL
GIVE TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS
INSTRUMENT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND.

THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON
TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE
AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE
INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE
ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT
BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH
SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE
WITH SAID AGREEMENT WILL BE VOID.”

(c) In the event that any Purchased Securities or Warrant Shares (i) become registered
under the Securities Act or (ii) are eligible to be transferred without restriction in accordance
with Rule 144 or another exemption from registration under the Securities Act (other than Rule
144A), the Company shall issue new certificates or other instruments representing such
Purchased Securities or Warrant Shares, which shall not contain the applicable legends in
Sections 4.2(a) and (b) above; provided that the Investor surrenders to the Company the
previously issued certificates or other instruments.

4.3 Certain Transactions. The Company will not merge or consolidate with, or sell,
transfer or lease all or substantially all of its property or assets to, any other party unless the
successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the
Company), expressly assumes the due and punctual performance and observance of each and
every covenant, agreement and condition of this Agreement to be performed and observed by the

Company.

44 Transfer of Purchased Securities and Warrant Shares; Restrictions on Exercise of

the Warrant. Subject to compliance with applicable securities laws, the Investor shall be
permitted to transfer, sell, assign or otherwise dispose of (“Transfer”) all or a portion of the
Purchased Securities or Warrant Shares at any time, and the Company shall take all steps as may
be reasonably requested by the Investor to facilitate the Transfer of the Purchased Securities and
the Warrant Shares; provided that the Investor shall not Transfer any Purchased Securities or
Warrant Shares if such transfer would require the Company to be subject to the periodic
reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (the
“Exchange Act). In furtherance of the foregoing, the Company shall provide reasonable
cooperation to facilitate any Transfers of the Purchased Securities or Warrant Shares, including,
as is reasonable under the circumstances, by furnishing such information conceming the
Company and its business as a proposed transferee may reasonably request (including such
information as is required by Section 4.5(k)) and making management of the Company

17.

SOUSA FAIA D PEELS 0 24004


UNITED STATES DEPARTMENT OF THE TREASURY
1500 PENNSYLVANIA AVENUE, NW
WASHINGTON, D.C. 20220

Dear Ladies and Gentlemen:

‘The company set forth on the signature page hereto (the “Company”) intends to issue in a
private placement the number of shares of a series of its Preferred stock set forth on Schedule A
hereto (the “Preferred Shares”) and a warrant to purchase the number of shares of a series of its
preferred stock set forth on Schedule A hereto (the “Warrant” and, together with the Preferred
Shares, the “Purchased Securities”) and the United States Department of the Treasury (the
“Investor”) intends to purchase from the Company the Purchased Securities.

The purpose of this letter agreement is to confirm the terms and conditions of the
purchase by the Investor of the Purchased Securities. Except to the extent supplemented or
superseded by the terms set forth herein or in the Schedules hereto, the provisions contained in
the Securities Purchase Agreement — Standard Terms attached hereto as Exhibit A (the
“Securities Purchase Agreement”) ate incorporated by reference herein. Terms that are defined
in the Securities Purchase Agreement are used in this letter agreement as so defined. In the event
of any inconsistency between this letter agreement and the Securities Purchase Agreement, the
terms of this letter agreement shall govern.

Each of the Company and the Investor hereby confirms its agreement with the other party
with respect to the issuance by the Company of the Purchased Securities and the purchase by the
Investor of the Purchased Securities pursuant to this letter agreement and the Securities Purchase
Agreement on the terms specified on Schedule A hereto.

This letter agreement (including the Schedules hereto), the Securities Purchase
Agreement (including the Annexes thereto), the Disclosure Schedules and the Warrant constitute
the entire agreement, and supersede all other prior agreements, understandings, representations
and warranties, both written and oral, between the parties, with respect to the subject matter
hereof. This letter agreement constitutes the “Letter Agreement” referred to in the Securities
Purchase Agreement.

This letter agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this letter agreement may be
delivered by facsimile and such facsimiles will be deemed as sufficient as if actual signature
pages had been delivered.

eae

(095331-0002-10033.NYD2.2603487 5

i
4
:
]


SCHEDULE D

COMPLIANCE WITH LAWS

List any exceptions to the representation and warranty in the second sentence of Section 2.2(m)
of the Securities Purchase Agreement ~ Standard Terms.

If none, please so indicate by checking the box: ba]

?
i
i
i
1
i
:

List any exceptions to the representation and warranty in the last sentence of Section 2.2(m) of }
the Securities Purchase Agreement — Standard Terms.

If none, please so indicate by checking the box:

ivB-12180810.2

UST Sequence #139


Schedule A

STANDARD PROVISIONS

Section |, General Matters. Each share of Designated Preferred Stock shall be identical
in all respects to every other share of Designated Preferred Stock. The Designated Preferred
Stock shall be perpetual, subject to the provisions of Section 5 of these Standard Provisions that
form a part of the Certificate of Designations. The Designated Preferred Stock shall rank equally
with Parity Stock and shall rank senior to Junior Stock with respect to the payment of dividends
and the distribution of assets in the event of any dissolution, liquidation or winding up of the

Issuer.

Section 2. Standard Definitions. As used herein with respect to Designated Preferred

Stock:

(a) “Applicable Dividend Rate” means (i) during the period from the Original Issue
Date to, but excluding, the first day of the first Dividend Period commencing on or after the fifth
anniversary of the Original Issue Date, 5% per annum and (ii) from and after the first day of the
first Dividend Period commencing on or after the fifth anniversary of the Original Issue Date,

9% per annum.

(b) “Appropriate Federal Banking Agency” means the “appropriate Federal banking
agency” with respect to the Issuer as defined in Section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. Section 1813(q)), or any successor provision.

(c) “Business Combination” means a merger, consolidation, statutory share
exchange or similar transaction that requires the approval of the Issuer’s stockholders.

(d) “Business Day” means any day except Saturday, Sunday and any day on which
banking institutions in the State of New York generally are authorized or required by law or
other governmental actions to close.

(e) “Bylaws” means the bylaws of the Issuer, as they may be amended from time to
time.
(f) “Certificate of Designations” means the Certificate of Designations or comparable

instrument relating to the Designated Preferred Stock, of which these Standard Provisions form a
part, as it may be amended from time to time.

(g) “Charter” means the Issuer's certificate or articles of incorporation, articles of
association, or similar organizational document.

(h) “Dividend Period” has the meaning set forth in Section 3(a).

(i) “Dividend Record Date” has the meaning set forth in Section 3(a).

(0) “Liquidation Preference” has the meaning set forth in Section da).


(viii) the Company shall have duly executed the Warrant in substantially the
form attached hereto as Annex E and delivered such executed Warrant to the Investor or

its designee(s).

1.3 Interpretation. When a reference is made in this Agreement to “Recitals,”
“Articles,” “Sections,” or “Annexes” such reference shall be to a Recital, Article or Section of,
or Annex to, this Securities Purchase Agreement — Standard Terms, and a reference to
“Schedules” shall be to a Schedule to the Letter Agreement, in each case, unless otherwise
indicated. The terms defined in the singular have a comparable meaning when used in the plural,
and vice versa. References to “herein”, “hereof”, “hereunder” and the like refer to this
Agreement as a whole and not to any particular section or provision, unless the context requires
otherwise. The table of contents and headings contained in this Agreement are for reference
purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed followed by the words “without
limitation.” No rule of construction against the draftsperson shall be applied in connection with
the interpretation or enforcement of this Agreement, as this Agreement is the product of
negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars”
mean the lawful currency of the United States of America. Except as expressly stated in this
Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as
amended, modified, supplemented or replaced from time to time (and, in the case of statutes,
include any rules and regulations promulgated under the statute) and to any section of any
statute, rule or regulation include any successor to the section. References to a “business day”
shall mean any day except Saturday, Sunday and any day on which banking institutions in the
State of New York generally are authorized or required by law or other governmental actions to

close.

Article IT
Representations and Warranties

2.1 Disclosure.

(a) On or prior to the Signing Date, the Company delivered to the Investor a schedule
(Disclosure Schedule”) setting forth, among other things, items the disclosure of which is
necessary or appropriate either in response to an express disclosure requirement contained in a
provision hereof or as an exception to one or more representations or warranties contained in

Section 2.2.

(b) “Company Material Adverse Effect” means a material adverse effect on (i) the
business, results of operation or financial condition of the Company and its consolidated
subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall
not be deemed to include the effects of (A) changes after the date of the Letter Agreement (the
“Signing Date”) in general business, economic or market conditions (including changes
generally in prevailing interest rates, credit availability and liquidity, currency exchange rates
and price levels or trading volumes in the United States or foreign securities or credit markets),
or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in

-4-

AVE atid can N08 tna


performed in all material respects all obligations required to be performed by it under this
Agreement at or prior to the Closing:

(i) the Investor shall have received a certificate signed on behalf of the
Company by a senior executive officer certifying to the effect that the conditions set forth
in Section 1.2(d)(i) have been satisfied:

(ili) the Company shall have duly adopted and filed with the Secretary of State
of its jurisdiction of organization or other applicable Governmental Entity the
amendments to its certificate or articles of incorporation, articles of association, or similar
organizational document (“Charter”) in substantially the forms attached hereto as Annex
A and Annex B (the “Certificates of Designations”) and such filing shall have been
accepted;

(iv) (A) the Company shall have effected such changes to its compensation,
bonus, incentive and other benefit plans, arrangements and agreements (including golden
parachute, severance and employment agreements) (collectively, “Benefit Plans”) with
Tespect to its Senior Executive Officers (and to the extent necessary for such changes to
be legally enforceable, each of its Senior Executive Officers shall have duly consented in
writing to such changes), as may be necessary, during the period that the Investor owns
any debt or equity securities of the Company acquired pursuant to this Agreement or the
Warrant, in order to comply with Section 111(b) of the Emergency Economic
Stabilization Act of 2008 (“EESA") as implemented by guidance or regulation thereunder
that has been issued and is in effect as of the Closing Date, and (B) the Investor shall
have received a certificate signed on behalf of the Company by a senior executive officer
certifying to the effect that the condition set forth in Section 1.2(d)(iv)(A) has been
satisfied;

(vy) each of the Company’s Senior Executive Officers shall have delivered to
the Investor a written waiver in the form attached hereto as Annex C releasing the
Investor from any claims that such Senior Executive Officers may otherwise have as a
result of the issuance, on or prior to the Closing Date, of any regulations which require
the modification of, and the agreement of the Company hereunder to modify, the terms of
any Benefit Plans with respect to its Senior Executive Officers to eliminate any
provisions of such Benefit Plans that would not be in compliance with the requirements
of Section 111(b) of the EESA as implemented by guidance or regulation thereunder that
has been issued and is in effect as of the Closing Date;

(vi) the Company shall have delivered to the Investor a wnitten opinion from
counsel to the Company (which may be internal counsel), addressed to the Investor and
dated as of the Closing Date, in substantially the form attached hereto as Annex D;

(vii) the Company shall have delivered certificates in Proper form or, with the
prior consent of the Investor, evidence of shares in book-entry form, evidencing the
Preferred Shares to Investor or its designee(s); and

-3-

WAL AMAT N VOD Saket


IN WITNESS WHEREOF, [Insert name of Issuer| has caused this [Certificate of
Designations] to be signed by [e]. its Je]. this [#] day of [e].

[Insert name of Issuer|

By
Name:
Title:


ANNEX A
FORM OF CERTIFICATE OF DESIGNATIONS FOR PREFERRED STOCK

(SEE ATTACHED]



Beneficiary: Mission Valley Bancorp

Contact for Confirmation of Wire Information:

}

j
;

i
:

MvB-12180810.2

UST Sequence #139


Registrable Securities to be listed on such securities exchange as the Investor may
designate.

(xi) If requested by Holders of a majority of the Registrable Securities being
registered and or sold in connection therewith, or the managing underwriter(s), if any,
promptly include in a prospectus supplement or amendment such information as the
Holders of a majority of the Registrable Securities being registered and/or sold in
connection therewith or managing underwriter(s), if any, may reasonably request in order
to permit the intended method of distribution of such securities and make all required
filings of such prospectus supplement or such amendment as soon as practicable after the
Company has received such request.

(xiv) Timely provide to its security holders earning statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

(e) Suspension of Sales. Upon receipt of written notice from the Company that a
registration statement, prospectus or prospectus supplement contains or may contain an untrue
statement of a material fact or omits or may omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading or that circumstances exist
that make inadvisable use of such registration statement, prospectus or prospectus supplement,
the Investor and each Holder of Registrable Securities shall forthwith discontinue disposition of
Registrable Securities until the Investor and/or Holder has received copies of a supplemented or
amended prospectus or prospectus supplement, or until the Investor and/or such Holder is
advised in writing by the Company that the use of the prospectus and, if applicable, prospectus
supplement may be resumed, and, if so directed by the Company, the Investor and/or such
Holder shall deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in the Investor and/or such Holder’s possession, of the prospectus
and, if applicable, prospectus supplement covering such Registrable Securities current at the time
of receipt of such notice. The total number of days that any such suspension may be in effect in
any 12-month period shall not exceed 90 days.

( Termination of Registration Rights. A Holder’s registration rights as to any

securities held by such Holder (and its Affiliates, partners, members and former members) shall
not be available unless such securities are Registrable Securities.

(g) Furnishing Information.

(i) Neither the Investor nor any Holder shall use any free writing prospectus
(as defined in Rule 405) in connection with the sale of Registrable Securities without the

prior written consent of the Company.

(ii) It shall be a condition precedent to the obligations of the Company to take
any action pursuant to Section 4.5(d) that Investor and/or the selling Holders and the
underwriters, if any, shall furnish to the Company such information regarding
themselves, the Registrable Securities held by them and the intended method of

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WSEAS 290 9


(k) “Original Issue Date” means the date on which shares of Designated Preferred
Stock are first issued.

(a) “Preferred Director” has the meaning set forth in Section 7(b).

(m) “Preferred Stock” means any and all series of preferred stock of the Issuer,
including the Designated Preferred Stock.

({n) “Qualified Equity Offering” means the sale and issuance for cash by the Issuer to

persons other than the Issuer or any of its subsidiaries atter the Original Issue Date of shares of
perpetual Preferred Stock, Common Stock or any combination of such stock, that, in each case,
qualify as and may be included in Tier | capital of the Issuer at the time of issuance under the
applicable risk-based capital guidelines of the Issuer's Appropriate Federal Banking Agency
(other than any such sales and issuances made Pursuant to agreements or arrangements entered
into, or pursuant to financing plans which were publicly announced, on or prior to November 17,

2008).

(0) “Standard Provisions” mean these Standard Provisions that form a part of the
Certificate of Designations relating to the Designated Preferred Stock.

(p) “Successor Preferred Stock” has the meaning set forth in Section 5(a).

(q) “Voting Parity Stock” means, with regard to any matter as to which the holders of.
Designated Preferred Stock are entitled to vote as specified in Sections 7(a) and 7(b) of these
Standard Provisions that form a part of the Certificate of Designations, any and all series of
Parity Stock upon which like voting rights have been conferred and are exercisable with respect

to such matter.

Section 3. Dividends.

(a) Rate. Holders of Designated Preferred Stock shall be entitled to receive, on each
share of Designated Preferred Stock if, as and when declared by the Board of Directors or any
duly authorized committee of the Board of Directors, but only out of assets legally available
therefor, cumulative cash dividends with respect to each Dividend Period (as defined below) ata
rate per annum equal to the Applicable Dividend Rate on (i) the Liquidation Amount per share of
Designated Preferred Stock and (ii) the amount of accrued and unpaid dividends for any prior
Dividend Period on such share of Designated Preferred Stock, if any. Such dividends shall begin
to accrue and be cumulative from the Original Issue Date, shall compound on each subsequent
Dividend Payment Date (/.¢., no dividends shall accrue on other dividends unless and until the
first Dividend Payment Date for such other dividends has passed without such other dividends
having been paid on such date) and shall be payable quarterly in arrears on each Dividend
Payment Date, commencing with the first such Dividend Payment Date to occur at least 20
calendar days after the Original Issue Date. In the event that any Dividend Payment Date would
otherwise fall on a day that is not a Business Day, the dividend payment due on that date will be
postponed to the next day that is a Business Day and no additional dividends will accrue as a
result of that postponement. The period from and including any Dividend Payment Date to, but
excluding. the next Dividend Payment Date is a “Dividend Period”, provided that the initial

WISTS TESTA YIS So OmRoss


such other actions reasonably requested by the Holders of a majority of the Registrable
Securities being sold in connection therewith or by the managing underwriter(s), if any,
to expedite or facilitate the underwritten disposition of such Registrable Securities, and in
connection therewith in any underwritten offering (including making members of
management and executives of the Company available to participate in “road shows”,
similar sales events and other marketing activities), (A) make such representations and
warranties to the Holders that are selling stockholders and the managing underwriter(s), if
any, with respect to the business of the Company and its subsidiaries, and the Shelf
Registration Statement, prospectus and documents, if any, incorporated or deemed to be
incorporated by reference therein, in each case, in customary form, substance and scope,
and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to
furnish the underwriters with opinions of counsel to the Company, addressed to the
managing underwriter(s), if any, covering the matters customarily covered in such
opinions requested in underwritten offerings, (C) use its reasonable best efforts to obtain
“cold comfort” letters from the independent certified public accountants of the Company
(and, if necessary, any other independent certified public accountants of any business
acquired by the Company for which financial statements and financial data are included
in the Shelf Registration Statement) who have certified the financial statements included
in such Shelf Registration Statement, addressed to each of the managing underwriter(s), if
any, such letters to be in customary form and covering matters of the type customarily
covered in “cold comfort” letters, (D) if an underwriting agreement is entered into, the
same shall contain indemnification provisions and procedures customary in underwritten
offerings (provided that the Investor shall not be obligated to provide any indemnity), and
(E) deliver such documents and certificates as may be reasonably requested by the
Holders of a majority of the Registrable Securities being sold in connection therewith,
their counsel and the managing underwriter(s), if any, to evidence the continued validity
of the representations and warranties made pursuant to clause (i) above and to evidence
compliance with any customary conditions contained in the underwriting agreement or
other agreement entered into by the Company.

(xi) Make available for inspection by a representative of Holders that are
selling stockholders, the managing underwriter(s), if any, and any attorneys or
accountants retained by such Holders or managing underwriters), at the offices where
normally kept, during reasonable business hours, financial and other records, pertinent
corporate documents and properties of the Company, and cause the officers, directors and
employees of the Company to supply all information in each case reasonably requested
(and of the type customarily provided in connection with due diligence conducted in
connection with a registered public offering of securities) by any such representative,
managing underwniter(s), attorney or accountant in connection with such Shelf
Registration Statement.

(xii) Use reasonable best efforts to cause all such Registrable Securities to be
listed on each national securities exchange on which similar securities issued by the
Company are then listed or, if no similar securities issued by the Company are then listed
on any national securities exchange, use its reasonable best efforts to cause all such

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PST a ATEN SHS LaPhE


Manhattan, The City of New York. and having a capital and surplus of at least $500 million and
selected by the Board of Directors, so as to be and continue to be available solely therefor. then,
notwithstanding that any certificate for any share so called for redemption has not been
surrendered for cancellation, on and after the redemption date dividends shall cease to acerue on
all shares so called for redemption, all shares so called for redemption shall no longer be deemed
outstanding and all rights with respect to such shares shall forthwith on such tedemption date
Cease and terminate, except only the right of the holders thereof to receive the amount payable on
such redemption from such bank or trust company, without interest. Any funds unclaimed at the
end of three years from the redemption date shall, to the extent permitted by law, be released to
the Issuer, after which time the holders of the shares so called for redemption shall look only to
the Issuer for payment of the redemption price of such shares.

(f) Status of Redeemed Shares. Shares of Designated Preferred Stock that are
redeemed, repurchased or otherwise acquired by the Issuer shall revert to authorized but unissued
shares of Preferred Stock (provided that any such cancelled shares of Designated Preferred Stock
may be reissued only as shares of any series of Preferred Stock other than Designated Preferred

Stock).

Section 6. Conversion. Holders of Designated Preferred Stock shares shall have no right
to exchange or convert such shares into any other securities.

Section 7. Voting Rights.

(a) General. The holders of Designated Preferred Stock shall not have any voting
rights except as set forth below or as otherwise from time to time required by law.

(b) Preferred Stock Directors. Whenever, at any time or times, dividends payable on
the shares of Designated Preferred Stock have not been paid for an aggregate of six quarterly
Dividend Periods or more, whether or not consecutive, the authorized number of directors of the
Issuer shall automatically be increased by two and the holders of the Designated Preferred Stock
shall have the right, with holders of shares of any one or more other classes or series of Voting
Parity Stock outstanding at the time, voting together as a class, to elect two directors (hereinafter
the “Preferred Directors" and each a “Preferred Director”) to fill such newly created
directorships at the Issuer’s next annual meeting of stockholders (or at a special meeting called
for that purpose prior to such next annual meeting) and at each subsequent annual meeting of
stockholders until all accrued and unpaid dividends for all past Dividend Periods, including the
latest completed Dividend Period (including, if applicable as provided in Section 3(a) above,
dividends on such amount), on all outstanding shares of Designated Preferred Stock have been
declared and paid in full at which time such right shall terminate with respect to the Designated
Preferred Stock, except as herein or by law expressly provided, subject to revesting in the event
of each and every subsequent default of the character above mentioned: provided that it shall be
a qualification for election for any Preferred Director that the election of such Preferred Director
shall not cause the Issuer to violate any corporate governance requirements of any securities
exchange or other trading facility on which securities of the Issuer may then be listed or traded
that listed or traded companies must have a majority of independent directors. Upon any
termination of the right of the holders of shares of Designated Preferred Stock and Voting Parity
Stock as a class to vote for directors as provided above, the Preferred Directors shall cease to be

4-7

USP LAME ESA VED



Location of

Term Definition
Pending Underwritten Offering 4.5(m)
Permitted Repurchases 4.7(c)
Piggyback Registration 4.5(b)iv)
Plan 2.2(n)
Preferred Shares Recitals
Preferred Stock Recitals
Previously Disclosed 2.1(c)
Proprietary Rights 2.2(u)
Purchase Recitals
Purchase Price Lt
Purchased Securities Recitals
register; registered; registration 4.5(I(iii)
Registrable Securities 4.5(I)(iv)
Registration Expenses 4.5()(v)
Regulatory Agreement 2.2(s)
Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415 4.5(1)(vi)
Savings and Loan Holding Company 4.10
Schedules Recitals
SEC 2.2(k)
Securities Act 2.2(a)
Selling Expenses 4.5(I)(vii)
Senior Executive Officers 48
Shelf Registration Statement 4.5(b)(ii)
Signing Date 2.1(b)
Special Registration 4.5)
subsidiary 5.7(a)
Tax; Taxes 2.2(0)
Transfer 44
Warrant Recitals
Warrant Preferred Stock Recitals
Warrant Shares 2.2(d)


cause any covenant or agreement of the Company contained in this Agreement not to be
complied with or satisfied in any material respect and (ii) except as Previously Disclosed, any
fact, circumstance, event, change, occurrence, condition or development of which the Company
is aware and which, individually or in the aggregate, has had or would reasonably be expected to
have a Company Material Adverse Effect; provided, however, that delivery of any notice
pursuant to this Section 3.4 shall not limit or affect any rights of or remedies available to the
Investor; provided, further, that a failure to comply with this Section 3.4 shall not constitute a
breach of this Agreement or the failure of any condition set forth in Section 1.2 to be satisfied
unless the underlying Company Material Adverse Effect or material breach would independently
result in the failure of a condition set forth in Section 1.2 to be satisfied.

3.5 Access, Information and Confidentiality.

(a) From the Signing Date until the date when the Investor holds an amount of
Preferred Shares having an aggregate liquidation value of less than 10% of the Purchase Price,
the Company will permit the Investor and its agents, consultants, contractors and advisors (x)
acting through the Appropriate Federal Banking Agency, or otherwise to the extent necessary to
evaluate, manage, or transfer its investment in the Company, to examine the corporate books and
make copies thereof and to discuss the affairs, finances and accounts of the Company and the
Company Subsidiaries with the principal officers of the Company, all upon reasonable notice and
at such reasonable times and as often as the Investor may reasonably request and (y) to review
any information material to the Investor’s investment in the Company provided by the Company
to its Appropriate Federal Banking Agency. Any investigation pursuant to this Section 3.5 shall
be conducted during normal business hours and in such manner as not to interfere unreasonably
with the conduct of the business of the Company, and nothing herein shall require the Company
or any Company Subsidiary to disclose any information to the Investor to the extent (i)
prohibited by applicable law or regulation, or (ii) that such disclosure would reasonably be
expected to cause a violation of any agreement to which the Company or any Company
Subsidiary is a party or would cause a risk of a loss of privilege to the Company or any Company
Subsidiary (provided that the Company shall use commercially reasonable efforts to make
appropriate substitute disclosure arrangements under circumstances where the restrictions in this

clause (ii) apply).

(b) From the Signing Date until the date on which all of the Preferred Shares and
Warrant Shares have been redeemed in whole, the Company will deliver, or will cause to be
delivered, to the Investor:

(i) as soon as available after the end of each fiscal year of the Company, and
in any event within 90 days thereafter, a consolidated balance sheet of the Company as of
the end of such fiscal year, and consolidated statements of income, retained eamings and
cash flows of the Company for such year, in each case Prepared in accordance with
GAAP and setting forth in each case in comparative form the figures for the previous
fiscal year of the Company, and which shall be audited to the extent audited financial
Statements are available; and

-14-



SCHEDULE B

CAPITALIZATION

Capitalization Date: 12/15/2008
Common Stock
Par value: no par i
Total Authorized: 10,000,000
Outstanding: 2,495,758
Subject to warrants, options, convertible securities, ete.: 161,065
Reserved for benefit plans and other issuances: 199,558
Remaining authorized but unissued: 7,143,619
Shares issued after Capitalization Date (other
than pursuant to warrants, options, i

convertible securities, etc. as set forth
above): None.

Preferred Stoc! i

Par value: no par

Total Authorized: 10,000,000
Outstanding (by series): 0 i
Reserved for issuance: 0 !

Remaining authorized but unissued: 10,000,000
Holders of 5% or more of any class of capital stock Primary Address i
| sor-ennevarearru-nsppumespepe— 55

—— —o
—



FORM OF [CERTIFICATE OF DESIGNATIONS]
OF
FIXED RATE CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES |e]

OF
le}

[nsert name of Issuer], a [corporation/bank/banking association] organized and existing
under the laws of the Znsert jurisdiction of organization] (the “Issuer”), in accordance with the
provisions of Section{s] [e] of the [Insert applicable statute} thereof, does hereby certify:

The board of directors of the Issuer (the “Board of Directors”) or an applicable committee
of the Board of Directors, in accordance with the [[certificate of incorporation/articles of
association] and bylaws] of the Issuer and applicable law, adopted the following resolution on
[e] creating a series of [e] shares of Preferred Stock of the Issuer designated as “Fixed Rate

Cumulative Perpetual Preferred Stock, Series fe}”.

RESOLVED, that pursuant to the provisions of the [[certificate of incorporation/articles
of association] and the bylaws] of the Issuer and applicable law, a series of Preferred Stock, par
value $[¢] per share, of the Issuer be and hereby is created, and that the designation and number
of shares of such series, and the voting and other powers, preferences and relative, participating,
optional or other rights, and the qualifications, limitations and restrictions thereof, of the shares

of such series, are as follows:

Part |. Designation and Number of Shares, There is hereby created out of the authorized

and unissued shares of preferred stock of the Issuer a series of preferred stock designated as the

“Fixed Rate Cumulative Perpetual Preferred Stock, Series [e]” (the “Designated Preferred
Stock”), The authorized number of shares of Designated Preferred Stock shall be [e].

Part 2. Standard Provisions. The Standard Provisions contained in Schedule A attached
hereto are incorporated herein by reference in their entirety and shall be deemed to be a part of
this [Certificate of Designations] to the same extent as if such provisions had been set forth in

full herein.

Part. 3. Definitions. The following terms are used in this [Certificate of Designations]
(including the Standard Provisions in Schedule A hereto) as defined below:

(a) “Common Stock” means the common stock, par value ${@] per share, of the

Issuer.

(b) “Dividend Payment Date” means February 15, May 15, August 13 and November
15 of each year,



ftem_t
Name:
Corporate or other organizational form:
Jurisdiction of organization:

Item 2

SCHEDULE A

Exercise Price:!

Item 3
Issue Date:

Item 4

Liquidation Amount:

Item

5

Series of Perpetual Preferred Stock:

Item 6
Date of Letter Agreement between the Company and the United States Department of the

Treasury:

Item 7

Number of shares of Preferred Stock:?

Item 8
Company’s address:

Item 9

2

Notice information:

ee

$0.01 per share or such greater amount as the Charter may require as the pur value of the Preferred Stock.

The initial number of shares of Preferred Stock for which this Warrant is exercisable shall include the
number of shares required to effect the cashless exercise pursuant to Section 4B) of this Warrant (e-g.,
Such number of shares of Preferred Stock having an aggregate Liquidation Amount equal in value to the
sipuregate Exercise Price) such that, following exercise of this Warrant and pay ment of the Exercise Price
Ui accordance with such Section 3B). the net number of shares of Preterred Stock delivered to the
Warrantholder (and rounded to the nearest whole share) would have an aggregate Liquidation Amount
oqual to 5% of the aggregate amount invested by the United States Deparment of the Treasury on the
investment date

WTE.NYHD eaten


SCHEDULE E

REGULATORY AGREEMENTS

i
i

List any exceptions to the representation and warranty in Section 2.2(s) of the Securities
Purchase Agreement ~ Standard Terms,

If none, please so indicate by checking the box: &)

ve-12180810.2

UST Sequence #139


distribution has been paid in full, the holders of other stock of the Issuer shall be entitled to
receive all remaining assets of the Issuer (or proceeds thereof) according to their respective rights
and preferences.

(d) Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this
Section 4, the merger or consolidation of the Issuer with any other corporation or other entity,
including a merger or consolidation in which the holders of Designated Preferred Stock receive
cash, securities or other property for their shares, or the sale, lease or exchange (for cash,
securities or other property) of all or substantially all of the assets of the Issuer. shall not
constitute a liquidation, dissolution or winding up of the Issuer.

Section 5. Redemption.

(a) Optional Redemption. Except as provided below, the Designated Preferred Stock
may not be redeemed prior to the later of (i) first Dividend Payment Date falling on or after the
third anniversary of the Original Issue Date; and (ii) the date on which all outstanding shares of
UST Preferred Stock have been redeemed, repurchased or otherwise acquired by the Issuer. On
or after the first Dividend Payment Date falling on or after the third anniversary of the Original
Issue Date, the Issuer, at its option, subject to the approval of the Appropriate Federal Banking
Agency, may redeem, in whole or in part, at any time and from time to time, out of funds legally
available therefor, the shares of Designated Preferred Stock at the time outstanding, upon notice
given as provided in Section 5(c) below, at a redemption price equal to the sum of (i) the
Liquidation Amount per share and (ii) except as otherwise provided below, any accrued and
unpaid dividends (including, if applicable as. provided in Section 3(a) above, dividends on such
amount) (regardless of whether any dividends are actually declared) to, but excluding, the date
fixed for redemption.

Notwithstanding the foregoing, prior to the first Dividend Payment Date falling on or
after the third anniversary of the Original Issue Date, the Issuer, at its option, subject to the
approval of the Appropriate Federal Banking Agency and subject to the requirement that all
outstanding shares of UST Preferred Stock shall previously have been redeemed, repurchased or
otherwise acquired by the Issuer, may redeem, in whole or in part, at any time and from time to
time, the shares of Designated Preferred Stock at the time outstanding, upon notice given as
provided in Section 5(c) below, at a redemption price equal to the sum of (i) the Liquidation
Amount per share and (ii) except as otherwise provided below, any accrued and unpaid
dividends (including, if applicable as provided in Section 3(a) above, dividends on such amount)
(regardless of whether any dividends are actually declared) to, but excluding, the date fixed for
redemption: provided that (x) the Issuer (or any successor by Business Combination) has
received aggregate gross proceeds of not less than the Minimum Amount (plus the “Minimum
Amount” as defined in the relevant certificate of designations for each other outstanding series of
preferred stock of such successor that was originally issued to the United States Department of
the Treasury (the “Successor Preferred Stock”) in connection with the Troubled Asset Relief
Program Capital Purchase Program) from one or more Qualified Equity Offerings (including
Qualified Equity Offerings of such successor), and (y) the aggregate redemption price of the
Designated Preferred Stock (and any Successor Preferred Stock) redeemed pursuant to this
paragraph may not exceed the aggregate net cash proceeds received by the Issuer (or any

LOST FameTH Si SNVAd


than (i) redemptions, purchases or other acquisitions of the Preferred Shares and Warrant Shares,
(ii) in connection with the administration of any employee benefit plan in the ordinary course of
business and consistent with past practice, (iii) the acquisition by the Company or any of the
Company Subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial
ownership of any other persons (other than the Company or any other Company Subsidiary),
including as trustees or custodians, (iv) the exchange or conversion of Junior Stock for or into
other Junior Stock or of Parity Stock or trust preferred securities for or into other Parity Stock
(with the same or lesser aggregate liquidation amount) or Junior Stock, in each case set forth in
this clause (iv), solely to the extent required pursuant to binding contractual agreements entered
into prior to the Signing Date or any subsequent agreement for the accelerated exercise,
settlement or exchange thereof for Common Stock (clauses (ii) and (iii), collectively, the
“Permitted Repurchases”), (v) redemptions of securities held by the Company or any wholly-
owned Company Subsidiary or (vi) redemptions, purchases or other acquisitions of capital stock
or other equity securities of any kind of any Company Subsidiary required pursuant to binding
contractual agreements entered into prior to November 17, 2008.

(d) Until such time as the Investor ceases to own any Preferred Shares or Warrant
Shares, the Company shall not repurchase any Preferred Shares or Warrant Shares from any
holder thereof, whether by means of open market purchase, negotiated transaction, or otherwise,
other than Permitted Repurchases, unless it offers to repurchase a ratable portion of the Preferred
Shares or Warrant Shares, as the case may be, then held by the Investor on the same terms and
conditions.

(e) During the period beginning on the tenth anniversary of the Closing and ending
on the date on which all of the Preferred Shares and Warrant Shares have been redeemed in
whole or the Investor has transferred all of the Preferred Shares and Warrant Shares to third
parties which are not Affiliates of the Investor, neither the Company nor any Company
Subsidiary shall, without the consent of the Investor, (i) declare or pay any dividend or make any
distribution on capital stock or other equity securities of any kind of the Company or any
Company Subsidiary; or (ii) redeem, purchase or acquire any shares of Common Stock or other
capital stock or other equity securities of any kind of the Company or any Company Subsidiary,
or any trust preferred securities issued by the Company or any Affiliate of the Company, other
than (A) redemptions, purchases or other acquisitions of the Preferred Shares and Warrant
Shares, (B) regular dividends on shares of preferred stock in accordance with the terms thereof
and which are permitted under the terms of the Preferred Shares and the Warrant Shares, or (C)
dividends or distributions by any wholly-owned Company Subsidiary.

(f) “Junior Stock” means Common Stock and any other class or series of stock of the
Company the terms of which expressly provide that it ranks junior to the Preferred Shares as to
dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company.
“Parity Stock” means any class or series of stock of the Company the terms of which do not
expressly provide that such class or series will rank senior or junior to the Preferred Shares as to
dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company (in
each case without regard to whether dividends accrue cumulatively or non-cumulatively).

-31-

wmnsaT



10. Saturdays, Sundays, Holidays, ete, If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day,
then such action may be taken or such right may be exercised on the next succeeding day that is
a business day.

I. Rule 144 Information. The Company covenants that it will use its reasonable best
efforts to timely file all reports and other documents required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC
thereunder (or, if the Company is not required to file such reports, it will, upon the request of any
Warrantholder, make publicly available such information as necessary to permit sales pursuant to
Rule 144 under the Securities Act), and it will use reasonable best efforts to take such further
action as any Warrantholder may reasonably request, in each case to the extent required from
time to time to enable such holder to, if permitted by the terms of this Warrant and the Purchase
Agreement, sell this Warrant without registration under the Securities Act within the limitation
of the exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be
amended from time to time, or (B) any successor rule or regulation hereafter adopted by the
SEC. Upon the written request of any Warrantholder, the Company will deliver to such
Warrantholder a written statement that it has complied with such requirements.

12. Adjustments and Other Rights. For so long as the Original Warrantholder holds

this Warrant or any portion thereof, if any event occurs that, in the good faith judgment of the
Board of Directors of the Company, would require adjustment of the Exercise Price or number of
Shares into which this Warrant is exercisable in order to fairly and adequately protect the
purchase rights of the Warrants in accordance with the essential intent and principles of the
Purchase Agreement and this Warrant, then the Board of Directors shall make such adjustments
in the application of such provisions, in accordance with such essential intent and principles, as
shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such
purchase rights as aforesaid.

Whenever the Exercise Price or the number of Shares into which this Warrant is
exercisable shall be adjusted as provided in this Section 12, the Company shall forthwith file at
the principal office of the Company a statement showing in reasonable detail the facts requiring
such adjustment and the Exercise Price that shall be in effect and the number of Shares into
which this Warrant shall be exercisable after such adjustment, and the Company shall also cause
a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at
the address appearing in the Company’s records,

13. No Impairment. The Company will not, by amendment of its Charter or through
any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of
Securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or pertormed hereunder by the Company, but will at all times in
good faith assist in the carrying out of all the Provisions of this Warrant and in taking of all such
action as may be necessary or appropmiate in order to protect the rights of the Warrantholder.

{4 Goverming Law. This Warrant will be governed by and construed in accordance
with the federal law of the United States if and to the extent such law is applicable, and
otherwise in accordance with the laws of the State of New York applicable to contracts made and

5



4.8 Executive Compensation. Until such time as the Investor ceases to own any debt
or equily securities of the Company acquired pursuant to this Agreement or the Warrant, the
Company shall take all necessary action to ensure that its Benefit Plans with respect to its Senior
Executive Officers comply in all respects with Section 111(b) of the EESA as implemented by
any guidance or regulation thereunder that has been issued and is in effect as of the Closing Date,
and shall not adopt any new Benefit Plan with respect to its Senior Executive Officers that does
not comply therewith. “Senior Executive Officers” means the Company's "senior executive
officers" as detined in subsection 1 11(b)(3) of the EESA and regulations issued thereunder,
including the rules set forth in 31 C.F.R. Part 30.

4.9 Related Party Transactions. Until such time as the Investor ceases to own any
Purchased Securities or Warrant Shares, the Company and the Company Subsidiaries shall not
enter into transactions with Affiliates or related persons (within the meaning of Item 404 under
the SEC’s Regulation S-K) unless (i) such transactions are on terms no less favorable to the
Company and the Company Subsidiaries than could be obtained from an unaffiliated third party,
and (ii) have been approved by the audit committee of the Board of Directors or comparable
body of independent directors of the Company.

4.10 Bank and Thrift Holding Company Status. If the Company is a Bank Holding

Company or a Savings and Loan Holding Company on the Signing Date, then the Company shall
maintain its status as a Bank Holding Company or Savings and Loan Holding Company, as the
case may be, for as long as the Investor owns any Purchased Securities or Warrant Shares. The
Company shall redeem all Purchased Securities and Warrant Shares held by the Investor prior to
terminating its status as a Bank Holding Company or Savings and Loan Holding Company, as
applicable. “Bank Holding Company” means a company registered as such with the Board of
Govemors of the Federal Reserve System (the “Federal Reserve”) pursuant to 12 U.S.C. §1842
and the regulations of the Federal Reserve promulgated thereunder. “Savings and Loan Holding
Company” means a company registered as such with the Office of Thrift Supervision pursuant to
12 U.S.C. §1467(a) and the regulations of the Office of Thrift Supervision promulgated

thereunder.

4.11 Predominantly Financial. For as long as the Investor owns any Purchased
Securities or Warrant Shares, the Company, to the extent it is not itself an insured depository
institution, agrees to remain predominantly engaged in financial activities. A company is
predominantly engaged in financial activities if the annual gross revenues derived by the
company and all subsidiaries of the company (excluding revenues derived from subsidiary
depository institutions), on a consolidated basis, from engaging in activities that are financial in
nature or are incidental to a financial activity under subsection (k) of Section 4 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1843(k)) represent at least 85 percent of the
consolidated annual gross revenues of the company.

Article V
Miscellaneous

Termination. This Agreement may be terminated at any time prior to the Closing:

uw

-32-


termination of the right of the holders of shares of Designated Preferred Stock and Voting Parity
Stock as a class to vote for directors as provided above, the Preferred Directors shall cease to be
qualified as directors. the term of oftice of all Preferred Directors then in office shall terminate
immediately and the authorized number of directors shall be reduced by the number of Preferred
Directors elected pursuant hereto. Any Preferred Director may be removed at any time. with or
without cause, and any vacancy created thereby may be filled, only by the affirmative vote of the
holders a majority of the shares of Designated Preferred Stock at the time outstanding voting
separately as a class together with the holders of shares of Voting Parity Stock, to the extent the
voting rights of such holders described above are then exercisable. If the office of any Preferred
Director becomes vacant for any reason other than removal from office as aforesaid, the
remaining Preferred Director may choose a successor who shall hold office for the unexpired
term in respect of which such vacancy occurred.

(c) Class Voting Rights as to Particular Matters. So long as any shares of Designated

Preferred Stock are outstanding, in addition to any other vote or consent of stockholders required
by law or by the Charter, the vote or consent of the holders of at least 66 2/3% of the shares of
Designated Preferred Stock at the time outstanding, voting as a separate class, given in person or
by proxy, either in writing without a meeting or by vote at any meeting called for the purpose,
shall be necessary for effecting or validating:

(i) Authorization of Senior Stock. Any amendment or alteration of the
Certificate of Designations for the Designated Preferred Stock or the Charter to authorize
or create or increase the authorized amount of, or any issuance of, any shares of, or any
securities convertible into or exchangeable or exercisable for shares of, any class or series
of capital stock of the Issuer ranking senior to Designated Preferred Stock with respect to
either or both the payment of dividends and/or the distribution of assets on any
liquidation, dissolution or winding up of the Issuer;

(ii) Amendment of Designated Preferred Stock. Any amendment, alteration

or repeal of any provision of the Certificate of Designations for the Designated Preferred
Stock or the Charter (including, unless no vote on such merger or consolidation is
required by Section 7(c)(iii) below, any amendment, alteration or repeal by means of a
merger, consolidation or otherwise) so as to adversely affect the rights, preferences,
privileges or voting powers of the Designated Preferred Stock; or

(ii) Share Exchanges, Reclassifications, Mergers and Consolidations. Any

consummation of a binding share exchange or reclassification involving the Designated
Preferred Stock, or of a merger or consolidation of the Issuer with another corporation or
other entity, unless in each case (x) the shares of Designated Preferred Stock remain
outstanding or, in the case of any such merger or consolidation with respect to which the
Issuer is not the surviving or resulting entity, are converted into or exchanged for
preference securities of the surviving or resulting entity or its ultimate parent. and (y)
such shares remaining outstanding or such preference securities, as the case may be, have
such rights, preferences, privileges and voting powers. and limitations and restrictions
thereof. taken as a whole. as are not materially less favorable to the holders thereof than
the rights, preferences, privileges and voting powers, and limitations and restrictions

\-8



the underwriter or underwriters selected for such underwriting by the Company; provided
that the Investor (as opposed to other Holders) shall not be required to indemnify any
person in connection with any registration. If any participating person disapproves of the
terms of the underwriting, such person may elect to withdraw therefrom by written notice
to the Company, the managing underwriters and the Investor (if the Investor is
participating in the underwriting).

(vi) If either (x) the Company grants “piggyback” registration rights to one or
more third parties to include their securities in an underwritten offering under the Shelf
Registration Statement pursuant to Section 4,5(b)(ii) or (y) a Piggyback Registration
under Section 4.5(b)(iv) relates to an underwritten offering on behalf of the Company,
and in either case the managing underwriters advise the Company that in their reasonable
opinion the number of securities requested to be included in such offering exceeds the
number which can be sold without adversely affecting the marketability of such offering
(including an adverse effect on the per share offering price), the Company will include in
such offering only such number of securities that in the reasonable opinion of such
managing underwriters can be sold without adversely affecting the marketability of the
offering (including an adverse effect on the per share offering price), which securities
will be so included in the following order of priority: (A) first, in the case of a Piggyback
Registration under Section 4.5(b)(iv), the securities the Company proposes to sell, (B)
then the Registrable Securities of the Investor and all other Holders who have requested
inclusion of Registrable Securities pursuant to Section 4.5(b)(ii) or Section 4.5(b)(iv), as
applicable, pro rata on the basis of the aggregate number of such securities or shares
owned by each such person and (C) lastly, any other securities of the Company that have
been requested to be so included, subject to the terms of this Agreement; provided,
however, that if the Company has, prior to the Signing Date, entered into an agreement
with respect to its securities that is inconsistent with the order of priority contemplated
hereby then it shall apply the order of priority in such conflicting agreement to the extent
that it would otherwise result in a breach under such agreement.

(c) Expenses of Registration. All Registration Expenses incurred in connection with

any registration, qualification or compliance hereunder shall be borne by the Company. All
Selling Expenses incurred in connection with any registrations hereunder shall be borne by the
holders of the securities so registered pro rata on the basis of the aggregate offering or sale price

of the securities so registered.

(d) Obligations of the Company. Whenever required to effect the registration of any

Registrable Securities or facilitate the distribution of Registrable Securities pursuant to an
effective Shelf Registration Statement, the Company shall, as. expeditiously as reasonably

practicable:

(i) Prepare and file with the SEC a prospectus supplement or post-effective
amendment with respect to a proposed offering of Registrable Securities pursuant to an
effective registration statement, subject to Section 4.5(d), keep such registration

-20-


ANNEX B

FORM OF CERTIFICATE OF DESIGNATIONS
FOR WARRANT PREFERRED STOCK

[SEE ATTACHED]



successor by Business Combination) from such Qualified Equity Offerings (including Qualified
Equity Offerings of such successor).

The redemption price for any shares of Designated Preferred Stock shall be payable on
the redemption date to the holder of such shares against surrender of the certificate(s) evidencing
such shares to the Issuer or its agent. Any declared but unpaid dividends payable on a
redemption date that occurs subsequent to the Dividend Record Date for a Dividend Period shall
not be paid to the holder entitled to receive the redemption price on the redemption date, but
rather shall be paid to the holder of record of the redeemed shares on such Dividend Record Date
relating to the Dividend Payment Date as provided in Section 3 above.

(b) No Sinking Fund. The Designated Preferred Stock will not be subject to any
mandatory redemption, sinking fund or other similar provisions. Holders of Designated Preferred
Stock will have no right to require redemption or repurchase of any shares of Designated

Preferred Stock.

(c) Notice of Redemption. Notice of every redemption of shares of Designated
Preferred Stock shall be given by first class mail, postage prepaid, addressed to the holders of
record of the shares to be redeemed at their respective last addresses appearing on the books of
the Issuer. Such mailing shall be at least 30 days and not more than 60 days before the date fixed
for redemption. Any notice mailed as provided in this Subsection shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice, but failure duly to give
such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares
of Designated Preferred Stock designated for redemption shall not affect the validity of the
proceedings for the redemption of any other shares of Designated Preferred Stock.
Notwithstanding the foregoing, if shares of Designated Preferred Stock are issued in book-entry
form through The Depository Trust Issuer or any other similar facility, notice of redemption may
be given to the holders of Designated Preferred Stock at such time and in any manner permitted
by such facility. Each notice of redemption given to a holder shall state: (1) the redemption date;
(2) the number of shares of Designated Preferred Stock to be redeemed and, if less than all the
shares held by such holder are to be redeemed, the number of such shares to be redeemed from
such holder; (3) the redemption price; and (4) the place or places where certificates for such
shares are to be surrendered for payment of the redemption price.

(d) Partial Redemption. In case of any redemption of part of the shares of Designated
Preferred Stock at the time outstanding, the shares to be redeemed shall be selected either pro
rata or in such other manner as the Board of Directors or a duly authorized committee thereof
may determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors
ora duly authorized committee thereof shall have full power and authority to prescribe the terms
and conditions upon which shares of Designated Preferred Stock shall be redeemed from time to
time. If fewer than all the shares represented by any certificate are redeemed, a new certificate
shall be issued representing the unredeemed shares w ithout charge to the holder thereof,

(e) Effectiveness of Redemption. If notice of redemption has been duly given and if
on or before the redemption date specitied in the notice all funds necessary for the redemption
have been deposited by the Issuer, in trust for the pro rata benefit of the holders of the shares
called for redemption, with a bank or trust company doing business in the Borough of


Nw
Re

41

43
4.4

45

4.7
48
49
4.10
4.1}

TABLE OF CONTENTS
Page
Article I
Purchase; Closing
Purchase.

Closing
Interpretation.

Article II

Representations and Warranties

Article [II

Covenants

Commercially Reasonable Effort:

Expenses .......
Sufficiency of Authorized Warrant Preferre Stoc

Certain Notifications Until Closing ...
Access, Information and Confidentiality
Article IV
Additional Agreements

Purchase for Investment . 34

Transfer of Purchased Securities and ‘Warrant Shares; Restri
of the Warrant ..

Registration Rights
Depositary Shares .....
Restriction on Dividends and Repurchase:
Executive Compensation ........
Related Party Transactions ..
Bank and Thrift Holding Company Status
Predominantly Financial... we



IN WITNESS WHEREOF. [Jnsert name of Issuer| has caused this [Certificate of
Designations] to be signed by [e], its [e}. this [e] day of fo].

[Insert name of Issuer]
By:

Name:
Title:



ANNEX A
FORM OF [CERTIFICATE OF DESIGNATIONS]
OF
FIXED RATE CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES [¢]
OF
[e]
[Insert name of Issuer], a [corporation/bank/banking association} organized and existing
under the laws of the Unsert jurisdiction of | organization| (the “IssuerTM), in accordance with the
provisions of Section{s] fe] of the [Insert applicable statute) thereof, does hereby certify:

The board of directors of the Issuer (the “Board of Directors”) or an applicable committee
of the Board of Directors, in accordance with the [certificate of incorporation/articles of
association] and bylaws} of the Issuer and applicable law, adopted the following resolution on
[©] creating a series of [e} shares of Preferred Stock of the Issuer designated as “Fixed Rate
Cumulative Perpetual Preferred Stock, Series [e]”.

RESOLVED, that pursuant to the provisions of the [[certificate of incorporation/articles
of association] and the bylaws] of the Issuer and applicable law, a series of Preferred Stock, par
value $[¢] per share, of the Issuer be and hereby is created, and that the designation and number
of shares of such series, and the voting and other powers, preferences and relative, participating,
optional or other rights, and the qualifications, limitations and restrictions thereof, of the shares
of such series, are as follows:

Part |. Designation and Number of Shares. There is hereby created out of the authorized
and unissued shares of preferred stock of the Issuer a series of preferred stock designated as the

“Fixed Rate Cumulative Perpetual Preferred Stock, Series [e}” (the “Designated Preferred
Stock”). The authorized number of shares of Designated Preferred Stock shall be {e].

Part 2. Standard Provisions. The Standard Provisions contained in Schedule A attached
hereto are incorporated herein by reference in their entirety and shall be deemed to be a part of
this [Certificate of Designations] to the same extent as if such provisions had been set forth in
full herein.

Part. 3. Definitions. The following terms are used in this [Certificate of Designations}
(including the Standard Provisions in Schedule A hereto) as defined below:

(a) “Common Stock” means the common stock. par value $[e] per share. of the
Issuer.

(b) “Dividend Payment Date” means February 15, May 15. August 15 and November
15 of each year.

DSR WEL STEN YU cosa


provided, however, that for all purposes of this Section 7(¢). any increase in the amount of the
authorized Preferred Stock. including any increase in the authorized amount of Designated
Preferred Stock necessary to satisty preemptive or similar rights granted by the Issuer to other
persons prior to the Signing Date, or the creation and issuance. or an increase in the authorized or
issued amount, whether pursuant to preemptive or similar rights or otherwise, of any other series
of Preferred Stock, or any securities convertible into or exchangeable or exercisable for any other
series of Preferred Stock, ranking equally with and/or junior to Designated Preferred Stock with
respect to the payment of dividends (whether such dividends are cumulative or non-cumulative)
and the distribution of assets upon liquidation, dissolution or winding up of the Issuer will not be
deemed to adversely affect the rights, preferences, privileges or voting powers, and shall not
require the affirmative vote or consent of, the holders of outstanding shares of the Designated
Preferred Stock.

(d) Changes after Provision for Redemption. No vote or consent of the holders of
Designated Preferred Stock shall be required pursuant to Section 7(c) above if, at or prior to the
time when any such vote or consent would otherwise be required pursuant to such Section, all
outstanding shares of the Designated Preferred Stock shall have been redeemed, or shall have
been called for redemption upon proper notice and sufficient funds shall have been deposited in
trust for such redemption, in each case pursuant to Section 5 above.

(e) Procedures for Voting and Consents. The rules and procedures for calling and

conducting any meeting of the holders of Designated Preferred Stock (including, without
limitation, the fixing of a record date in connection therewith), the solicitation and use of proxies
at such a meeting, the obtaining of written consents and any other aspect or matter with regard to
such a meeting or such consents shall be governed by any rules of the Board of Directors or any
duly authorized committee of the Board of Directors, in its discretion, may adopt from time to
time, which rules and procedures shall conform to the requirements of the Charter, the Bylaws,
and applicable law and the rules of any national securities exchange or other trading facility on
which Designated Preferred Stock is listed or traded at the time.

Section 8. Record Holders. To the fullest extent permitted by applicable law, the Issuer
and the transfer agent for Designated Preferred Stock may deem and treat the record holder of
any share of Designated Preferred Stock as the true and lawful owner thereof for all purposes,
and neither the Issuer nor such transfer agent shall be affected by any notice to the contrary.

Section 9. Notices. All notices or communications in respect of Designated Preferred
Stock shall be sufficiently given if given in writing and delivered in person or by first class mail,
postage prepaid, or if given in such other manner as may be permitted in this Certificate of
Designations. in the Charter or Bylaws or by applicable law. Notwithstanding the foregoing, if
shares of Designated Preferred Stock are issued in book-entry form through The Depository
Trust Issuer or any similar facility, such notices may be given to the holders of Designated
Preferred Stock in any manner permitted by such facility.

Section 10. No Preemptive Rights. No share of Designated Preferred Stock shall have
any rights of preemption whatsoever as to any securities of the Issuer, or any warrants, rights or
options issued or granted with respect thereto. regardless of how such securities, or such
warrants, rights or options, may be designated, issued or granted.

PSUS EGGE NSPS tate


(ii) The execution, delivery and performance by the Company of this
Agreement and the Warrant and the consummation of the transactions contemplated
hereby and thereby and compliance by the Company with the provisions hereof and
thereof, will not (A) violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in the creation
of, any lien, security interest, charge or encumbrance upon any of the properties or assets
of the Company or any subsidiary of the Company (each a “Company Subsidiary” and,
collectively, the “Company Subsidiaries”) under any of the terms, conditions or
provisions of (i) its organizational documents or (ii) any note, bond, mortgage, indenture,
deed of trust, license, lease, agreement or other instrument or obligation to which the
Company or any Company Subsidiary is a party or by which it or any Company
Subsidiary may be bound, or to which the Company or any Company Subsidiary or any
of the properties or assets of the Company or any Company Subsidiary may be subject, or
(B) subject to compliance with the statutes and regulations referred to in the next
paragraph, violate any statute, rule or regulation or any judgment, ruling, order, writ,
injunction or decree applicable to the Company or any Company Subsidiary or any of
their respective properties or assets except, in the case of clauses (A)(ii) and (B), for
those occurrences that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Company Material Adverse Effect.

(iii) Other than the filing of the Certificates of Designations with the Secretary
of State of its jurisdiction of organization or other applicable Governmental Entity, such
filings and approvals as are required to be made or obtained under any state “blue sky”
laws and such as have been made or obtained, no notice to, filing with, exemption or
review by, or authorization, consent or approval of, any Governmental Entity is required
to be made or obtained by the Company in connection with the consummation by the
Company of the Purchase except for any such notices, filings, exemptions, reviews,
authorizations, consents and approvals the failure of which to make or obtain would not,
individually or in the aggregate, reasonably be expected to have a Company Material
Adverse Effect.

(f) Anti-takeover Provisions and Rights Plan. The Board of Directors of the

Company (the “Board of Directors’) has taken all necessary action to ensure that the transactions
contemplated by this Agreement and the Warrant and the consummation of the transactions
contemplated hereby and thereby, including the exercise of the Warrant in accordance with its
terms, will be exempt from any anti-takeover or similar provisions of the Company’s Charter and
bylaws, and any other provisions of any applicable “moratorium”, “control share”, “fair price”,
“interested stockholder” or other anti-takeover laws and regulations of any jurisdiction.

(g) No Company Material Adverse Effect. Since the last day of the last completed
fiscal period for which financial statements are included in the Company Financial Statements
(as defined below), no fact, circumstance, event, change, occurrence, condition or development

PISA ale GLE SED Nowisea


Section 10, No Preemptive Rights. No share of Designated Preferred Stock shall have
any rights of preemption whatsoever as to any securities of the Issuer. or any warrants, rights or
options issued or granted with respect thereto, regardless of how such securities, or such
warrants, rights or options, may be designated, issued or granted,

Section 11. Replacement Certificates. The Issuer shall replace any mutilated certificate at
the holder's expense upon surrender of that certificate to the Issuer. The Issuer shall replace
certificates that become destroyed, stolen or lost at the holder's expense upon delivery to the
Issuer of reasonably satisfactory evidence that the certificate has been destroyed, stolen or lost,
together with any indemnity that may be reasonably required by the Issuer.

Section 12. Other Rights. The shares of Designated Preferred Stock shall not have any
rights, preferences, privileges or voting powers or relative, participating, optional or other special
rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the
Charter or as provided by applicable law.

A-10



(o) means any and all series of preferred stock of the Issuer.
including the Designated Preferred Stock.

(m) “Qualified Equity Offering” means the sale and issuance for cash by the Issuer to

persons other than the Issuer or any of its subsidiaries after the Original Issue Date of shares of
perpetual Preferred Stock, Common Stock or any combination of such stock, that. in each case,
as and may be included in Tier | capital of the Issuer at the time of issuance under the
applicable risk-based capital guidelines of the Issuer's Appropriate Federal Banking Agency
(other than any such sales and issuances made pursuant to agreements or arrangements entered
into, or pursuant to financing plans which were publicly announced, on or prior to November 17,

2008).

(n) “Standard Provisions” mean these Standard Provisions that form a part of the
Certificate of Designations relating to the Designated Preferred Stock.

(0) “Successor Preferred Stock” has the meaning set forth in Section 5(a).

(p) “Voting Parity Stock” means, with regard to any matter as to which the holders of.
Designated Preferred Stock are entitled to vote as specified in Sections 7(a) and 7(b) of these
Standard Provisions that form a part of the Certificate of Designations, any and all series of
Parity Stock upon which like voting rights have been conferred and are exercisable with respect
to such matter.

Section 3. Dividends.

(a) Rate. Holders of Designated Preferred Stock shall be entitled to receive, on each
share of Designated Preferred Stock if, as and when declared by the Board of Directors or any
duly authorized committee of the Board of Directors, but only out of assets legally available
therefor, cumulative cash dividends with respect to each Dividend Period (as defined below) at a
per annum rate of 9.0% on (i) the Liquidation Amount per share of Designated Preferred Stock
and (ii) the amount of accrued and unpaid dividends for any prior Dividend Period on such share
of Designated Preferred Stock, if any. Such dividends shall begin to accrue and be cumulative
from the Original Issue Date, shall compound on each subsequent Dividend Payment Date (i.e.,
no dividends shall accrue on other dividends unless and until the first Dividend Payment Date for
such other dividends has passed without such other dividends having been paid on such date) and
shall be payable quarterly in arrears on each Dividend Payment Date, commencing with the first
such Dividend Payment Date to occur at least 20 calendar days after the Original Issue Date. In
the event that any Dividend Payment Date would otherwise fall on a day that is not a Business
Day, the dividend payment due on that date will be postponed to the next day that is a Business
Day and no additional dividends will accrue as a result of that postponement. The period from
and including any Dividend Payment Date to, but excluding. the next Dividend Payment Date is
a “Dividend Period”. provided that the initial Dividend Period shall be the period from and
including the Original Issue Date to. but excluding, the next Dividend Payment Date.

Dividends that are payable on Designated Preferred Stock in respect of any Dividend
Period shall be computed on the basis of a 360-day year consisting of tweive 30-day months. The
amount of dividends payable on Designated Preferred Stock on any date prior to the end ofa


other employees who have a significant role in the Company's internal controls over
financial reporting.

G) No Undisclosed Liabilities. Neither the Company nor any of the Company
Subsidiaries has any liabilities or obligations of any nature (absolute, accrued, contingent or
otherwise) which are not properly reflected or reserved against in the Company Financial
Statements to the extent required to be so reflected or reserved against in accordance with
GAAP, except for (A) liabilities that have arisen since the last fiscal year end in the ordinary and
usual course of business and consistent with past practice and (B) liabilities that, individually or
in the aggregate, have not had and would not reasonably be expected to have a Company
Material Adverse Effect.

(k) Offering of Securities. Neither the Company nor any person acting on its behalf
has taken any action (including any offering of any securities of the Company under
circumstances which would require the integration of such offering with the offering of any of
the Purchased Securities under the Securities Act, and the rules and regulations of the Securities
and Exchange Commission (the “SEC”) promulgated thereunder), which might subject the
offering, issuance or sale of any of the Purchased Securities to Investor pursuant to this
Agreement to the registration requirements of the Securities Act.

(I) Litigation and Other Proceedings. Except (i) as set forth on Schedule C or (ii) as
would not, individually or in the aggregate, reasonably be expected to have a Company Material
Adverse Effect, there is no (A) pending or, to the knowledge of the Company, threatened, claim,
action, suit, investigation or proceeding, against the Company or any Company Subsidiary or to
which any of their assets are subject nor is the Company or any Company Subsidiary subject to
any order, judgment or decree or (B) unresolved violation, criticism or exception by any
Governmental Entity with respect to any report or relating to any examinations or inspections of
the Company or any Company Subsidiaries.

(m) — Compliance with Laws. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, the Company and the
Company Subsidiaries have all permits, licenses, franchises, authorizations, orders and approvals
of, and have made all filings, applications and registrations with, Governmental Entities that are
required in order to permit them to own or lease their properties and assets and to carry on their
business as presently conducted and that are material to the business of the Company or such
Company Subsidiary. Except as set forth on Schedule D, the Company and the Company
Subsidiaries have complied in all respects and are not in default or violation of, and none of them
is, to the knowledge of the Company, under investigation with respect to or, to the knowledge of
the Company, have been threatened to be charged with or given notice of any violation of, any
applicable domestic (federal, state or local) or foreign law, statute, ordinance, license, tule,
regulation, policy or guideline, order, demand, writ, injunction, decree or judgment of any
Governmental Entity, other than such noncompliance, defaults or violations that would not,
individually or in the aggregate, reasonably be expected to have a Company Material Adverse
Effect. Except for statutory or regulatory restrictions of general application or as set forth on
Schedule D, no Governmental Entity has placed any restriction on the business or properties of

-9-


EXHIBIT A
(Non-Exchange-Traded QFls, excluding S Corps
and Mutual Organizations)

SECURITIES PURCHASE AGREEMENT

STANDARD TERMS

AUD EMTS REO


(a) Prior to the earlier of (x) the third anniversary of the Closing Date and (y) the date
on which all of the Preferred Shares and Warrant Shares have been redeemed in whole or the
Investor has transferred all of the Preferred Shares and Warrant Shares to third parties which are
not Affiliates of the Investor, neither the Company nor any Company Subsidiary shall, without
the consent of the Investor, declare or Pay any dividend or make any distribution on capital stock
or other equity securities of any kind of the Company or any Company Subsidiary (other than (i)
regular quarterly cash dividends of not more than the amount of the last quarterly cash dividend
per share declared or, if lower, announced to its holders of Common Stock an intention to
declare, on the Common Stock prior to November 17, 2008, as adjusted for any stock split, stock
dividend, reverse stock split, reclassification or similar transaction, (ii) dividends payable solely
in shares of Common Stock, regular dividends on shares of preferred stock in accordance
with the terms thereof and which are permitted under the terms of the Preferred Shares and the
Warrant Shares, (iv) dividends or distributions by any wholly-owned Company Subsidiary or (v)
dividends or distributions by any Company Subsidiary required pursuant to binding contractual
agreements entered into prior to November 17, 2008).

(b) During the period beginning on the third anniversary of the Closing Date and
ending on the earlier of (i) the tenth anniversary of the Closing Date and (ii) the date on which all
of the Preferred Shares and Warrant Shares have been redeemed in whole or the Investor has
transferred all of the Preferred Shares and Warrant Shares to third parties which are not Affiliates
of the Investor, neither the Company nor any Company Subsidiary shall, without the consent of
the Investor, (A) pay any per share dividend or distribution on capital stock or other equity
securities of any kind of the Company at a per annum rate that is in excess of 103% of the
aggregate per share dividends and distributions for the immediately prior fiscal year (other than
regular dividends on shares of preferred stock in accordance with the terms thereof and which
are permitted under the terms of the Preferred Shares and the Warrant Shares); provided that no
increase in the aggregate amount of dividends or distributions on Common Stock shall be
permitted as a result of any dividends or distributions paid in shares of Common Stock, any stock
split or any similar transaction or (B) Pay aggregate dividends or distributions on capital stock or
other equity securities of any kind of any Company Subsidiary that is in excess of 103% of the
aggregate dividends and distributions paid for the immediately prior fiscal year (other than in the
case of this clause (B), (1) regular dividends on shares of preferred stock in accordance with the
terms thereof and which are permitted under the terms of the Preferred Shares and the Warrant
Shares, (2) dividends or distributions by any wholly-owned Company Subsidiary, (3) dividends
or distributions by any Company Subsidiary required pursuant to binding contractual agreements
entered into prior to November 17, 2008) or (4) dividends or distributions on newly issued shares
of capital stock for cash or other property.

(c) Prior to the earlier of (x) the tenth anniversary of the Closing Date and (y) the date
on which all of the Preferred Shares and Warrant Shares have been redeemed in whole or the
Investor has transferred all of the Preferred Shares and Warrant Shares to third parties which are
not Affiliates of the Investor, neither the Company nor any Company Subsidiary shall, without
the consent of the Investor, redeem, purchase or acquire any shares of Common Stock or other
capital stock or other equity securities of any kind of the Company or any Company Subsidiary,
or any trust preferred securities issued by the Company or any Affiliate of the Company, other

-30-

FT NYY Deans



to be performed entirely within such State. Each of the Company and the Warrantholder agrees
{a) to submit to the exclusive jurisdiction and venue of the United States District Court for the
District of Columbia for any civil action, suit or proceeding arising out of or relating to this
Warrant or the transactions contemplated hereby, and (b) that notice may be served upon the
Company at the address in Section 17 below and upon the Warrantholder at the address for the
Warrantholder set forth in the registry maintained by the Company pursuant to Section 8 hereof.
To the extent permitted by applicable law, each of the Company and the Warrantholder hereby
unconditionally waives trial by jury in any civil legal action or Proceeding relating to the
Warrant or the transactions contemplated hereby or thereby.

15. Binding Effect. This Warrant shall be binding upon any successors or assigns of
the Company.

16. Amendments, This Warrant may be amended and the observance of any term of
this Warrant may be waived only with the written consent of the Company and the
Warrantholder.

17. Notices. Any notice, Tequest, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered Personally, or by facsimile, upon confirmation of receipt, or (b) on
the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices hereunder shall be delivered as set forth in Item 9 of Schedule A
hereto, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice.

18. Entire Agreement. This Warrant, the forms attached hereto and Schedule A
hereto (the terms of which are incorporated by reference herein), and the Letter Agreement
(including all documents incorporated therein), contain the entire agreement between the parties
with respect to the subject matter hereof and supersede all prior and contemporaneous
arrangements or undertakings with respect thereto.

[Remainder of page intentionally left blank]

HEX amUE GNTANS AS ote


reasonably available to respond to questions of a proposed transferee in accordance with
customary practice, subject in all cases to the proposed transferee agreeing to a customary
confidentiality agreement.

4.5 Registration Rights.

(a) Unless and until the Company becomes subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company shall have no obligation to comply with
the provisions of this Section 4.5 (other than Section 4.5(b)(iv)-(vi)); provided that the Company
covenants and agrees that it shall comply with this Section 4.5 as soon as practicable after the
date that it becomes subject to such reporting requirements.

(b) Registration.

(i) Subject to the terms and conditions of this Agreement, the Company
covenants and agrees that as promptly as practicable after the date that the Company
becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act
(and in any event no later than 30 days thereafter), the Company shall prepare and file
with the SEC a Shelf Registration Statement covering all Registrable Securities (or
otherwise designate an existing Shelf Registration Statement filed with the SEC to cover
the Registrable Securities), and, to the extent the Shelf Registration Statement has not
theretofore been declared effective or is not automatically effective upon such filing, the
Company shall use reasonable best efforts to cause such Shelf Registration Statement to
be declared or become effective and to keep such Shelf Registration Statement
continuously effective and in compliance with the Securities Act and usable for resale of
such Registrable Securities for a period from the date of its initial effectiveness until such
time as there are no Registrable Securities remaining (including by refiling such Shelf
Registration Statement (or a new Shelf Registration Statement) if the initial Shelf
Registration Statement expires). Notwithstanding the foregoing, if the Company is not
eligible to file a registration statement on Form S-3, then the Company shall not be
obligated to file a Shelf Registration Statement unless and until requested to do so in
writing by the Investor.

(ii) Any registration pursuant to Section 4.5(b)(i) shall be effected by means
of a shelf registration on an appropriate form under Rule 415 under the Securities Act (a
“Shelf Registration Statement”). Uf the Investor or any other Holder intends to distribute
any Registrable Securities by means of an underwritten offering it shall promptly so
advise the Company and the Company shall take all reasonable steps to facilitate such
distribution, including the actions required pursuant to Section 4.5(d): provided that the
Company shall not be required to facilitate an underwritten offering of Registrable
Securities unless the expected gross proceeds from such offering exceed (i) 2% of the
initial aggregate liquidation preference of the Preferred Shares if such initial aggregate
liquidation preference is less than $2 billion and (ii) $200 million if the initial aggregate
liquidation preference of the Preferred Shares is equal to or greater than $2 billion. The
lead underwriters in any such distribution shall be selected by the Holders of a majority

1B

BENGE Soong



In witness whereof, this letter agreement has been duly executed and delivered by the duly
authorized representatives of the parties hereto as of the date written below.

UNITED STATES DEPARTMENT OF THE

TREASURY
on BOE

“Name:

Title: Neel Kashkari
Interim Assistant Secretary
For Financial Stability
COMPANY: Mission Valley Banoorp
Name:
yi ‘Gumey
Titles President and CE

December 1, 2008 UST Sequence #139



Dividend Period shall be the period trom and including the Original Issue Date to, but excluding,
the next Dividend Payment Date.

Dividends that are payable on Designated Preferred Stock in tespect of any Dividend
Period shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The
amount of dividends pay able on Designated Preferred Stock on any date prior to the end of a
Dividend Period, and for the initial Dividend Period. shall be computed on the basis ofa 360-day

year consisting of twelve 30-day months, and actual days elapsed over a 30-day month.

Dividends that are payable on Designated Preferred Stock on any Dividend Payment Date
will be payable to holders of record of Designated Preferred Stock as they appear on the stock
register of the Issuer on the applicable record date, which shall be the 15th calendar day
immediately preceding such Dividend Payment Date or such other record date fixed by the
Board of Directors or any duly authorized committee of the Board of Directors that is not more
than 60 nor less than 10 days prior to such Dividend Payment Date (each, a “Dividend Record
Date”). Any such day that is a Dividend Record Date shall be a Dividend Record Date whether

or not such day is a Business Day.

Holders of Designated Preferred Stock shall not be entitled to any dividends, whether
payable in cash, securities or other property, other than dividends (ifany) declared and payable
on Designated Preferred Stock as specified in this Section 3 (subject to the other provisions of
the Certificate of Designations).

(b) Priority of Dividends. So long as any share of Designated Preferred Stock
remains outstanding, no dividend or distribution shall be declared or paid on the Common Stock
or any other shares of Junior Stock (other than dividends payable solely in shares of Common
Stock) or Parity Stock, subject to the immediately following paragraph in the case of Parity
Stock, and no Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly,
purchased, redeemed or otherwise acquired for consideration by the Issuer or any of its
subsidiaries unless all accrued and unpaid dividends for all past Dividend Periods, including the
latest completed Dividend Period (including, if applicable as provided in Section 3(a) above,
dividends on such amount), on all outstanding shares of Designated Preferred Stock have been or
are contemporaneously declared and paid in full (or have been declared and a sum sufficient for

business and consistent with Past practice; (ii) the acquisition by the Issuer or any of its
subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial ownership of
any other persons (other than the Issuer or any of its subsidiaries), including as trustees or
custodians; and (iii) the exchange or conversion of Junior Stock for or into other Junior Stock or
of Parity Stock for or into other Parity Stock (with the same or lesser aggregate liquidation
amount) or Junior Stock. in each case. solely to the extent required pursuant to binding
contractual agreements entered into prior to the Signing Date or any subsequent agreement for
the accelerated exercise, settlement or exchange thereof for Common Stock.

AS totZ TH ISEE NYE Seoltn


equitable considerations. The relative fault of the Company, on the one hand, and of the
Indemnitee, on the other hand, shall be determined by reference to, among other factors,
whether the untrue statement of a material fact or omission to state a material fact relates
to information supplied by the Company or by the Indemnitee and the parties’ relative
intent, knowledge, access to information and Opportunity to correct or prevent such
statement or omission; the Company and each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 4.5(h)(ii) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 4.5(h)(i). No Indemnitee guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from the Company if the Company was not guilty of such
fraudulent misrepresentation.

(i) Assignment of Registration Rights. The rights of the Investor to registration of

Registrable Securities pursuant to Section 4.5(b) may be assigned by the Investor to a transferee
or assignee of Registrable Securities with a liquidation preference or, in the case of the Warrant,
the liquidation preference of the underlying shares of Warrant Preferred Stock, no less than an
amount equal to (i) 2% of the initial aggregate liquidation preference of the Preferred Shares if
such initial aggregate liquidation preference is less than $2 billion and (ii) $200 million if the
initial aggregate liquidation preference of the Preferred Shares is equal to or greater than $2
billion; provided, however, the transferor shall, within ten days after such transfer, furnish to the
Company written notice of the name and address of such transferee or assignee and the number
and type of Registrable Securities that are being assigned.

G) Clear Market. With respect to any underwritten offering of Registrable Securities
by the Investor or other Holders pursuant to this Section 4.5, the Company agrees not to effect
(other than pursuant to such registration or pursuant to a Special Registration) any public sale or
distribution, or to file any Shelf Registration Statement (other than such registration or a Special
Registration) covering any preferred stock of the Company or any securities convertible into or
exchangeable or exercisable for preferred stock of the Company, during the period not to exceed
ten days prior and 60 days following the effective date of such offering or such longer period up
to 90 days as may be requested by the managing underwriter for such underwritten offering. The
Company also agrees to cause such of its directors and senior executive officers to execute and
deliver customary lock-up agreements in such form and for such time period up to 90 days as
may be requested by the managing underwriter. “Special Registration” means the registration of
(A) equity securities and/or options or other rights in respect thereof solely registered on Form S-
4 or Form S-8 (or successor form) or (B) shares of equity securities and/or options or other rights
in respect thereof to be offered to directors, members of management, employees, consultants,
customers, lenders or vendors of the Company or Company Subsidiaries or in connection with
dividend reinvestment plans.

(k) Rule 144: Rule 144A. With a view to making available to the Investor and
Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the
Registrable Secunties to the public without registration, the Company agrees to use its
reasonable best efforts to:

-26-

S28 AVIS LOUSY 2 Sind


policies of such person, whether through the ownership of voting securities by contract or
otherwise.

(ce) The terms “knowledge of the Company” or “Ci company 's knowledge” mean the
actual knowledge after reasonable and due inquiry of the “officers” (as such term is defined in
Rule 3b-2 under the Exchange Act, but excluding any Vice President or Secretary) of the
Company.

5.8 Assignment. Neither this Agreement nor any right, remedy, obligation nor
lability arising hereunder or by reason hereof shall be assignable by any party hereto without the
prior written consent of the other party, and any attempt to assign any right, remedy, obligation
or liability hereunder without such consent shall be void, except (a) an assignment, in the case of
a merger, consolidation, statutory share exchange or similar transaction that requires the approval
of the Company’s stockholders (a “Business Ce ‘ombination”) where such party is not the surviving
entity, or a sale of substantially all of its assets, to the entity which is the survivor of such
Business Combination or the purchaser in such sale and (b) as provided in Sections 3.5 and 4.5.

5.9 Severability. If any provision of this Agreement or the Warrant, or the application
thereof to any person or circumstance, is determined by a court of competent jurisdiction to be
invalid, void or unenforceable, the remaining provisions hereof, or the application of such
provision to persons or circumstances other than those as to which it has been held invalid or
unenforceable, will remain in full force and effect and shall in no way be affected, impaired or
invalidated thereby, so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any party. Upon such determination,
the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable
substitute provision to effect the original intent of the parties.

5.10 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer upon any person or entity other than the Company and the Investor
any benefit, right or remedies, except that the provisions of Section 4.5 shall inure to the benefit

of the persons referred to in that Section.

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statement effective and keep such prospectus supplement current until the securities
described therein are no longer Registrable Securities.

(ii) Prepare and file with the SEC such amendments and supplements to the
applicable registration statement and the Prospectus or prospectus supplement used in
connection with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all securities covered by
such registration statement.

(iii) Furnish to the Holders and any underwriters such number of copies of the
applicable registration statement and each such amendment and supplement thereto
(including in each case all exhibits) and of a prospectus, including a preliminary
Prospectus, in conformity with the requirements of the Securities Act, and such other
documents as they may reasonably Tequest in order to facilitate the disposition of
Registrable Securities owned or to be distributed by them.

(iv) Use its reasonable best efforts to register and qualify the securities covered
by such registration statement under such other securities or Blue Sky laws of such
Jurisdictions as shall be reasonably requested by the Holders or any managing
underwriter(s), to keep such registration or qualification in effect for so long as such
registration statement remains in effect, and to take any other action which may be
reasonably necessary to enable such seller to consummate the disposition in such
jurisdictions of the securities owned by such Holder; provided that the Company shall not
be required in connection therewith or as a condition thereto to qualify to do business or
to file a general consent to service of Process in any such states or jurisdictions.

(v) Notify each Holder of Registrable Securities at any time when a
prospectus relating thereto is required to be delivered under the Securities Act of the
happening of any event as a result of which the applicable prospectus, as then in effect,
includes an untrue statement of a material fact or omits to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in light of
the circumstances then existing.

(vi) Give written notice to the Holders:

(A) _ when any registration statement filed pursuant to Section 4.5(a) or
any amendment thereto has been filed with the SEC (except for any amendment
effected by the filing of a document with the SEC pursuant to the Exchange Act)
and when such registration statement or any post-effective amendment thereto has
become effective;

(B) of any request by the SEC for amendments or supplements to any
registration statement or the prospectus included therein or for additional
information;

OAV AD Somand to


each case generally affecting the industries in which the Company and its subsidiaries operate,
(B) changes or proposed changes after the Signing Date in generally accepted accounting
principles in the United States (“GaP”) or regulatory accounting requirements, or authoritative
interpretations thereof, or (C) changes or proposed changes after the Signing Date in securities,
banking and other laws of general applicability or related policies or interpretations of
Governmental Entities (in the case of each of these clauses (A), (B) and (C), other than changes
or occurrences to the extent that such changes or occurrences have or would reasonably be
expected to have a materially disproportionate adverse effect on the Company and its
consolidated subsidiaries taken as a whole relative to comparable U.S. banking or financial
services organizations); or (ii) the ability of the Company to consummate the Purchase and other
transactions contemplated by this Agreement and the Warrant and perform its obligations
hereunder or thereunder on a timely basis.

(c) “Previously Disclosed” means information set forth on the Disclosure Schedule,
provided, however, that disclosure in any section of such Disclosure Schedule shall apply only to
the indicated section of this Agreement except to the extent that it is reasonably apparent from
the face of such disclosure that such disclosure is relevant to another section of this Agreement.

2.2. Representations and Warranties of the Company. Except as Previously Disclosed,

the Company represents and warrants to the Investor that as of the Signing Date and as of the
Closing Date (or such other date specified herein):

(a) Organization, Authority and Significant Subsidiaries, The Company has been
duly incorporated and is validly existing and in good standing under the laws of its jurisdiction of
organization, with the necessary power and authority to own its properties and conduct its
business in all material respects as currently conducted, and except as has not, individually or in
the aggregate, had and would not reasonably be expected to have a Company Material Adverse
Effect, has been duly qualified as a foreign Corporation for the transaction of business and is in
good standing under the laws of each other jurisdiction in which it owns or leases properties or
conducts any business so as to require such qualification; each subsidiary of the Company that
would be considered a “significant subsidiary” within the meaning of Rule 1-02(w) of
Regulation S-X under the Securities Act of 1933 (the “Securities Act’), has been duly organized
and is validly existing in good standing under the laws of its jurisdiction of organization. The
Charter and bylaws of the Company, copies of which have been provided to the Investor prior to
the Signing Date, are true, complete and correct copies of such documents as in full force and
effect as of the Signing Date.

(b) Capitalization. The authorized capital stock of the Company, and the outstanding
capital stock of the Company (including securities convertible into, or exercisable or
exchangeable for, capital stock of the Company) as of the most recent fiscal month-end
preceding the Signing Date (the “Capitalization Date”) is set forth on Schedule B. The
outstanding shares of capital stock of the Company have been duly authorized and are validly
issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights (and
were not issued in violation of any preemptive rights). As of the Signing Date, the Company
does not have outstanding any securities or other obligations providing the holder the right to

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PEEL Ome? CORNY



payment dates different from the Dividend Payment Dates, on a dividend payment date falling
within the Dividend Period related to such Dividend Payment Date) shall be declared pro rata so
that the respective amounts of such dividends declared shall bear the same ratio to each other as
all accrued and unpaid dividends per share on the shares of Designated Preferred Stock
(including, if applicable as provided in Section 3(a) above, dividends on such amount) and all
Parity Stock payable on such Dividend Payment Date (or, in the case of Parity Stock having
dividend payment dates different from the Dividend Payment Dates. on a dividend payment date
falling within the Dividend Period related to such Dividend Payment Date) (subject to their
having been declared by the Board of Directors or a duly authorized committee of the Board of
Directors out of legally available funds and including, in the case of Parity Stock that bears
cumulative dividends, all accrued but unpaid dividends) bear to each other. If the Board of
Directors or a duly authorized committee of the Board of Directors determines not to pay any
dividend or a full dividend on a Dividend Payment Date, the Issuer will provide written notice to
the holders of Designated Preferred Stock prior to such Dividend Payment Date.

Subject to the foregoing, and not otherwise, such dividends (payable in cash, securities or
other property) as may be determined by the Board of Directors or any duly authorized
committee of the Board of Directors may be declared and paid on any securities, including
Common Stock and other Junior Stock, from time to time out of any funds legally available for
such payment, and holders of Designated Preferred Stock shall not be entitled to participate in
any such dividends.

Section 4. Liquidation Rights,

(a) Voluntary or Involuntary Liquidation. In the event of any liquidation, dissolution
or winding up of the affairs of the Issuer, whether voluntary or involuntary, holders of
Designated Preferred Stock shall be entitled to receive for each share of Designated Preferred
Stock, out of the assets of the Issuer or proceeds thereof (whether capital or surplus) available for
distribution to stockholders of the Issuer, subject to the tights of any creditors of the Issuer,
before any distribution of such assets or proceeds is made to or set aside for the holders of
Common Stock and any other stock of the Issuer ranking junior to Designated Preferred Stock as
to such distribution, payment in full in an amount equal to the sum of (i) the Liquidation Amount
per share and (ii) the amount of any accrued and unpaid dividends (including, if applicable as
provided in Section 3(a) above, dividends on such amount), whether or not declared, to the date

of payment (such amounts collectively, the “Liquidation Preference”),

(b) Partial Payment. If in any distribution described in Section 4(a) above the assets
of the Issuer or proceeds thereof are not sufficient to pay in full the amounts payable with respect
to all outstanding shares of Designated Preferred Stock and the corresponding amounts payable
with respect of any other stock of the Issuer ranking equally with Designated Preferred Stock as
to such distribution, holders of Designated Preferred Stock and the holders of such other stock
shall share ratably in any such distribution in Proportion to the full respective distributions to
which they are entitled.

(c) Residual Distributions. If the Liquidation Preference has been paid in full to all
holders of Designated Preferred Stock and the corresponding amounts payable with respect of
any other stock of the Issuer ranking equally with Designated Preferred Stock as to such

Lege LTS aed



[Form of Notice of Exercise]
Date:

TO: [Company]
RE: Election to Purchase Preferred Stock

The undersigned, pursuant to the Provisions set forth in the attached Warrant, hereby
agrees to subscribe for and purchase the number of shares of the Preferred Stock set forth below
covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby
agrees to pay the aggregate Exercise Price for such shares of Preferred Stock in the manner set
forth in Section 3(B) of the Warrant. A new warrant evidencing the remaining shares of
Preferred Stock covered by such Warrant, but not yet subscribed for and purchased, if any,
should be issued in the name set forth below.

Number of Shares of Preferred Stock
Aggregate Exercise Price:

Holder:

Name:
Title:



When dividends are not paid (or declared and a sum sufficient for payment thereof set
aside for the benefit of the holders thereof on the applicable record date) on any Dividend
Payment Date (or. in the case of Parity Stock having dividend payment dates different from the
Dividend Payment Dates. on a dividend payment date falling within a Dividend Period related to
such Dividend Payment Date) in full upon Designated Preferred Stock and any shares of Parity
Stock, all dividends declared on Designated Preferred Stock and all such Parity Stock and
payable on such Dividend Payment Date (or, in the case of Parity Stock having dividend
payment dates different from the Dividend Payment Dates, on a dividend payment date falling
within the Dividend Period related to such Dividend Payment Date) shall be declared pro rata SO
that the respective amounts of such dividends declared shall bear the same ratio to each other as
all accrued and unpaid dividends per share on the shares of Designated Preferred Stock
(including, if applicable as provided in Section 3(a) above, dividends on such amount) and all
Parity Stock payable on such Dividend Payment Date (or, in the case of Parity Stock having
dividend payment dates different from the Dividend Payment Dates, on a dividend payment date
falling within the Dividend Period related to such Dividend Payment Date) (subject to their
having been declared by the Board of Directors or a duly authorized committee of the Board of
Directors out of legally available funds and including, in the case of Parity Stock that bears
cumulative dividends, all accrued but unpaid dividends) bear to each other. If the Board of
Directors or a duly authorized committee of the Board of Directors determines not to pay any
dividend or a full dividend on a Dividend Payment Date, the Issuer will provide written notice to
the holders of Designated Preferred Stock prior to such Dividend Payment Date.

Subject to the foregoing, and not otherwise, such dividends (payable in cash, securities or
other property) as may be determined by the Board of Directors or any duly authorized
committee of the Board of Directors may be declared and paid on any securities, including
Common Stock and other Junior Stock, from time to time out of any funds legally available for
such payment, and holders of Designated Preferred Stock shall not be entitled to participate in

any such dividends.

Section 4, Liquidation Rights.

(a) Voluntary or Involuntary Liquidation. In the event of any liquidation, dissolution
or winding up of the affairs of the Issuer, whether voluntary or involuntary, holders of
Designated Preferred Stock shall be entitled to receive for each share of Designated Preferred
Stock, out of the assets of the Issuer or proceeds thereof (whether capital or surplus) available for
distribution to stockholders of the Issuer, subject to the rights of any creditors of the Issuer,
before any distribution of such assets or proceeds is made to or set aside for the holders of
Common Stock and any other stock of the Issuer ranking junior to Designated Preferred Stock as
to such distribution, payment in full in an amount equal to the sum of (i) the Liquidation Amount
per share and (ii) the amount of any accrued and unpaid dividends (including, if applicable as
provided in Section 3(a) above. dividends on such amount), whether or not declared, to the date

of payment (such amounts collectively, the “Liquidation Preference”),

{(b) Partial Payment. If in any distribution described in Section 4(a) above the assets
of the [ssuer or proceeds thereof are not sufficient to pay in full the amounts payable with respect
to all outstanding shares of Designated Preferred Stock and the corresponding amounts payable
with respect of any other stock of the Issuer ranking equally with Designated Preferred Stock as

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redemption price of the Designated Preferred Stock (and any Successor Preferred Stock)
redeemed pursuant to this paragraph may not exceed the aggregate net cash proceeds received by
the Issuer (or any successor by Business Combination) from such Qualitied Equity Offerings
(including Qualified Equity Offerings of such successor).

The redemption price for any shares of Designated Preferred Stock shall be payable on
the redemption date to the holder of such shares against surrender of the certificate(s) evidencing
such shares to the Issuer or its agent. Any declared but unpaid dividends payable on a
redemption date that occurs subsequent to the Dividend Record Date for a Dividend Period shall
not be paid to the holder entitled to receive the redemption price on the redemption date, but
rather shall be paid to the holder of record of the redeemed shares on such Dividend Record Date
relating to the Dividend Payment Date as provided in Section 3 above.

(b) No Sinking Fund. The Designated Preferred Stock will not be subject to any
mandatory redemption, sinking fund or other similar provisions. Holders of Designated Preferred
Stock will have no right to require redemption or repurchase of any shares of Designated
Preferred Stock.

(c) Notice of Redemption. Notice of every redemption of shares of Designated
Preferred Stock shall be given by first class mail, postage prepaid, addressed to the holders of
record of the shares to be redeemed at their respective last addresses appearing on the books of
the Issuer. Such mailing shall be at least 30 days and not more than 60 days before the date fixed
for redemption. Any notice mailed as provided in this Subsection shall be conclusively presumed
to have been duly given, whether or not the holder receives such notice, but failure duly to give
such notice by mail, or any defect in such notice or in the mailing thereof, to any holder of shares
of Designated Preferred Stock designated for redemption shall not affect the validity of the
proceedings for the redemption of any other shares of Designated Preferred Stock.
Notwithstanding the foregoing, if shares of Designated Preferred Stock are issued in book-entry
form through The Depository Trust Issuer or any other similar facility, notice of redemption may
be given to the holders of Designated Preferred Stock at such time and in any manner permitted
by such facility. Each notice of redemption given to a holder shall state: (1) the redemption date;
(2) the number of shares of. Designated Preferred Stock to be redeemed and, if less than all the
shares held by such holder are to be redeemed, the number of such shares to be redeemed from
such holder; (3) the redemption price; and (4) the place or places where certificates for such
shares are to be surrendered for payment of the redemption price,

(d) Partial Redemption. In case of any redemption of part of the shares of Designated
Preferred Stock at the time outstanding, the shares to be redeemed shall be selected either pro
rata or in such other manner as the Board of Directors or a duly authorized committee thereof
may determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors
or a duly authorized committee thereof shall have full power and authority to prescribe the terms
and conditions upon which shares of Designated Preferred Stock shail be redeemed from time to
time. If fewer than all the shares represented by any certificate are redeemed, a new certificate
shall be issued representing the unredeemed shares without charge to the holder thereof,

(e) Effectiveness of Redemption. If notice of redemption has been duly given and if

on or before the redemption date specified in the notice all funds necessary for the redemption

A-6


has occurred that, individually or in the aggregate, has had or would reasonably be expected to
have a Company Material Adverse Effect.

(h) Company Financial Statements. The Company has Previously Disclosed each of
the consolidated financial statements of the Company and its consolidated subsidiaries for each

of the last three completed fiscal years of the Company (which shall be audited to the extent
audited financial statements are available prior to the Signing Date) and each completed
quarterly period since the last completed fiscal year (collectively the “Company Financial
Statements”). The Company Financial Statements present fairly in all material respects the
consolidated financial position of the Company and its consolidated subsidiaries as of the dates
indicated therein and the consolidated results of their operations for the periods specified therein;
and except as stated therein, such financial statements (A) were prepared in conformity with
GAAP applied on a consistent basis (except as may be noted therein) and (B) have been prepared
from, and are in accordance with, the books and records of the Company and the Company
Subsidiaries.

(i) Reports.

(i) Since December 31, 2006, the Company and each Company Subsidiary
has filed all reports, registrations, documents, filings, statements and submissions,
together with any amendments thereto, that it was required to file with any Governmental
Entity (the foregoing, collectively, the “Company Reports”) and has paid all fees and
assessments due and payable in connection therewith, except, in each case, as would not,
individually or in the aggregate, teasonably be expected to have a Company Material
Adverse Effect. As of their respective dates of filing, the Company Reports complied in
all material respects with all statutes and applicable rules and regulations of the
applicable Governmental Entities.

(ii) The records, systems, controls, data and information of the Company and
the Company Subsidiaries are recorded, stored, maintained and operated under means
(including any electronic, mechanical or photographic process, whether computerized or
not) that are under the exclusive ownership and direct control of the Company or the
Company Subsidiaries or their accountants (including all means of access thereto and
therefrom), except for any non-exclusive ownership and non-direct control that would not
reasonably be expected to have a material adverse effect on the system of internal
accounting controls described below in this Section 2.2(i)(ii).. The Company (A) has
implemented and maintains adequate disclosure controls and procedures to ensure that
material information relating to the Company, including the consolidated Company
Subsidiaries, is made known to the chief executive officer and the chief financial officer
of the Company by others within those entities, and (B) has disclosed, based on its most
recent evaluation prior to the Signing Date, to the Company's outside auditors and the
audit committee of the Board of Directors (x) any significant deficiencies and material
weaknesses in the design or operation of internal controls that are reasonably likely to
adversely affect the Company’s ability to record, process, summarize and report financial
information and (y) any fraud, whether or not material, that involves management or

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