Form of Guarantee Agreement for Mellon Capital IV between Mellon and M&T Trust


 Exhibit 4.27 
  

 FORM OF GUARANTEE AGREEMENT 
 by and between 
 MELLON FINANCIAL CORPORATION

 as Guarantor 
 and 

MANUFACTURERS AND TRADERS TRUST COMPANY 
 as
Guarantee Trustee 
 relating to 
 MELLON CAPITAL IV 
 Dated as of June •, 2007 
  







 CROSS-REFERENCE TABLE* 
  

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



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



					
		 		  	
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 TABLE OF CONTENTS 
  

					
	  	  	 	  	Page
		
	ARTICLE I	  	
		
	Definitions	  	
		  		  	
	 Section 1.1
	  	Definitions	  	1
		
	ARTICLE II	  	
		
	Trust Indenture Act	  	
			
	 Section 2.1
	  	Trust Indenture Act; Application	  	4
	 Section 2.2
	  	List of Holders	  	4
	 Section 2.3
	  	Reports by the Guarantee Trustee	  	4
	 Section 2.4
	  	Periodic Reports to the Guarantee Trustee	  	4
	 Section 2.5
	  	Evidence of Compliance with Conditions Precedent	  	4
	 Section 2.6
	  	Events of Default; Waiver	  	5
	 Section 2.7
	  	Events of Default; Notice	  	5
	 Section 2.8
	  	Conflicting Interests	  	5
		
	ARTICLE III	  	
		
	Powers, Duties and Rights of the Guarantee Trustee	  	
			
	 Section 3.1
	  	Powers and Duties of the Guarantee Trustee	  	5
	 Section 3.2
	  	Certain Rights of Guarantee Trustee	  	6
	 Section 3.3
	  	Indemnity	  	8
		
	ARTICLE IV	  	
		
	Guarantee Trustee	  	
	 Section 4.1
	  	Guarantee Trustee; Eligibility	  	8
	 Section 4.2
	  	Appointment, Removal and Resignation of the Guarantee Trustee	  	9
		
	ARTICLE V	  	
		
	Guarantee	  	
			
	 Section 5.1
	  	Guarantee	  	9
	 Section 5.2
	  	Waiver of Notice and Demand	  	9
	 Section 5.3
	  	Obligations Not Affected	  	10
	 Section 5.4
	  	Rights of Holders	  	10
	 Section 5.5
	  	Guarantee of Payment	  	11
	 Section 5.6
	  	Subrogation	  	11
	 Section 5.7
	  	Independent Obligations	  	11



					
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	ARTICLE VI	  	
		
	Covenants and Subordination	  	
			
	 Section 6.1
	  	Subordination	  	11
	 Section 6.2
	  	Pari Passu Guarantees	  	11
		
	ARTICLE VII	  	
		
	Termination	  	
			
	 Section 7.1
	  	Termination	  	12
		
	ARTICLE VIII	  	
		
	Miscellaneous	  	
			
	 Section 8.1
	  	Successors and Assigns	  	12
	 Section 8.2
	  	Amendments	  	12
	 Section 8.3
	  	Notices	  	12
	 Section 8.4
	  	Benefit	  	13
	 Section 8.5
	  	Governing Law	  	13



					
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		 		  	GUARANTEE AGREEMENT








 This GUARANTEE AGREEMENT, dated as of June •,
2007, is executed and delivered by MELLON FINANCIAL CORPORATION, a Pennsylvania corporation (the “Guarantor”), having its principal office at One Mellon Center, 500
Grant Street, Pittsburgh, Pennsylvania 15258, and MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation, as trustee (the
“Guarantee Trustee”), for the benefit of the Holders (as defined herein) from time to time of the Trust Preferred Securities of Mellon Capital IV, a Delaware statutory trust (the “Issuer Trust”). 
 WHEREAS, pursuant to an Amended and Restated Trust Agreement, dated as of June •, 2007 (the “Trust Agreement”), among the
Guarantor, as Depositor, the Property Trustee, the Delaware Trustee and the Administrative Trustees and the Holders from time to time of the Trust Securities, the Issuer Trust is issuing $500,000,000 aggregate Liquidation Amount (as defined in the
Trust Agreement) of Trust Preferred Securities having the terms set forth in the Trust Agreement; 
 WHEREAS, the proceeds of the
Trust Preferred Securities will be used to purchase the Notes (as defined herein), which initially will be pledged by the Issuer Trust, acting through Manufacturers and Traders Trust Company, as Property Trustee for the Issuer Trust (the
“Property Trustee”), to The Bank of New York, as collateral agent for the Guarantor, pursuant to the Collateral Agreement, dated as of the date hereof, among the Guarantor, The Bank of New York, as Collateral Agent, Custodial Agent,
Securities Intermediary and Securities Registrar, and the Issuer Trust (acting through the Property Trustee). 
 WHEREAS, as an
incentive for the Holders to purchase the Trust Preferred Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth herein, to pay to the Holders of the Trust Preferred Securities the Guarantee Payments (as
defined herein) and to make certain other payments on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration
of the purchase of Trust Preferred Securities by each Holder, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the benefit of the Holders from time to time.

 ARTICLE I 
 Definitions 
 Section 1.1 Definitions. 
 As used in this Guarantee Agreement, the terms set forth below shall, unless the context otherwise requires, have the following meanings. Capitalized or otherwise defined terms used but not otherwise defined herein
shall have the meanings assigned to such terms in the Trust Agreement as in effect on the date hereof. 
 “Affiliate” of any
specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person; provided, however, that an Affiliate of the Guarantor shall not be deemed to be an
Affiliate of the Issuer Trust. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Board of Directors” means the board of directors of the Guarantor or any committee of that board duly authorized to act hereunder. 
  


					
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 “Event of Default” means a default by the Guarantor on any of its payment or other
obligations under this Guarantee Agreement; provided, however, that, except with respect to a default in payment of any Guarantee Payments, the Guarantor shall have received notice of default and shall not have cured such default within 30 days
after receipt of such notice. 
 “Guarantee Agreement” means this Guarantee Agreement, as modified, amended or supplemented
from time to time. 
 “Guarantee Payments” means the following payments or distributions, without duplication, with respect
to the Trust Preferred Securities of any Series, to the extent not paid or made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid Distributions required to be paid on the Trust Preferred Securities of such Series, to the
extent the Issuer Trust shall have funds on hand available therefor at such time; (ii) the Redemption Price with respect to any Trust Preferred Securities called for redemption by the Issuer Trust (other than in connection with the redemption
of Capital PCS in exchange for Notes or, if the Company elects to remarket the Notes in the form of New Trust Preferred Securities pursuant to Section 5.2(d) of the Indenture Supplement, such New Trust Preferred Securities), to the extent the
Issuer Trust shall have funds on hand available therefor at such time; and (iii) upon a voluntary or involuntary termination, winding-up or liquidation of the Issuer Trust, other than in connection with the distribution of a Like Amount of
Corresponding Assets (as defined in the Trust Agreement) to the Holders of Trust Preferred Securities and Trust Common Securities, the lesser of (a) the Liquidation Distribution with respect to each Series of the Trust Preferred Securities, to
the extent that the Issuer Trust shall have funds on hand available therefor at such time and (b) the amount of assets of the Issuer Trust remaining available for distribution to Holders of the Trust Preferred Securities on liquidation of the
Issuer Trust. 
 “Guarantee Trustee” means Manufacturers and Traders Trust Company, solely in its capacity as Guarantee
Trustee and not in its individual capacity, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee Agreement, and thereafter means each such Successor Guarantee Trustee.

 “Guarantor” has the meaning specified in the first paragraph of this Guarantee Agreement. 
 “Holder” means any Holder (as defined in the Trust Agreement) of any Trust Preferred Securities; provided, however, that
in determining whether the holders of the requisite percentage of Trust Preferred Securities of any Series have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor, the Guarantee Trustee, or any
Affiliate of the Guarantor or the Guarantee Trustee. 
 “Issuer Trust” has the meaning specified in the first paragraph of
this Guarantee Agreement. 
 “List of Holders” has the meaning specified in Section 2.2(a). 
 “Majority in Liquidation Amount of the Securities” means, except as provided by the Trust Indenture Act, a vote by the Holder(s), voting
separately as a class, of more than 50% of the Liquidation Amount of all then outstanding Securities issued by the Issuer Trust. 
 “Officers’ Certificate” means, with respect to any Person, a certificate signed by the Chairman and Chief Executive Officer, President or a Vice President, and by the Treasurer, an Associate Treasurer, an Assistant
Treasurer, the Controller, the Secretary or an Assistant Secretary, of such Person, 

  


					
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and delivered to the Guarantee Trustee. One of the officers signing an Officer’s Certificate given pursuant to Section 2.5 shall be the principal
executive, financial or accounting officer of the Guarantor. Any Officers’ Certificate delivered with respect to compliance with a condition or covenant provided for in this Guarantee Agreement shall include: 
 (i) a statement that each officer signing the Officers’ Certificate has read the covenant or condition and the definitions relating
thereto; 
 (ii) a brief statement of the nature and scope of the examination or investigation undertaken by each such officer
in rendering the Officers’ Certificate; 
 (iii) a statement that each officer has made such examination or investigation
as, in such officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (iv) a statement as to whether, in the opinion of each officer, such condition or covenant has been complied with. 
 “Responsible Officer” means, with respect to the Guarantee Trustee, any officer within the corporate trust department of the Guarantee
Trustee, including any vice president, assistant vice president, assistant treasurer, trust officer or any other officer of the Guarantee Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be
officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Guarantee
Agreement. 
 “Senior Debt” has the meaning specified in the Indenture. 
 “Stock Purchase Date” has the meaning specified in the Stock Purchase Contract Agreement, dated as of the date hereof, between the
Guarantor and the Issuer Trust (acting through the Property Trustee). 
 “Successor Guarantee Trustee” means a successor
Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 4.1. 
 “Trust Agreement”
means the Amended and Restated Trust Agreement of the Issuer Trust referred to in the recitals to this Guarantee Agreement, as modified, amended or supplemented from time to time. 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 
 ARTICLE II 
 Trust Indenture Act 
 Section 2.1 Trust Indenture Act; Application. 
 (a)
This Guarantee Agreement is subject to the provisions of the Trust Indenture Act that are required to be part of this Guarantee Agreement and shall, to the extent applicable, be governed by such provisions. 
  


					
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 (b) If and to the extent that any provision of this Guarantee Agreement limits, qualifies or conflicts
with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control. 
 Section 2.2 List of
Holders. 
 (a) The Guarantor will furnish or cause to be furnished to the Guarantee Trustee: (i) semi-annually, not more than 15
days after April 15 and October 15 in each year, a list, in such form as the Guarantee Trustee may reasonably require, of the names and addresses of the Holders as of such April 15 and October 15, and (ii) at such other
times as the Guarantee Trustee may request in writing, within 30 days after the receipt by the Guarantor of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, excluding
from any such list names and addresses received by the Guarantee Trustee in its capacity as Securities Registrar. 
 (b) The Guarantee
Trustee shall comply with its obligations under Section 311(a), Section 311(b) and Section 312(b) of the Trust Indenture Act. 
 Section 2.3
Reports by the Guarantee Trustee. 
 Not later than May 31 of each year, commencing May 31, 2008, the Guarantee Trustee
shall provide to the Holders such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. The Guarantee Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act. 
 Section 2.4 Periodic Reports to the Guarantee Trustee. 
 The Guarantor shall provide to the Guarantee Trustee, the Commission and the Holders such documents reports and information, if any, as required by
Section 314 of the Trust Indenture Act and the compliance certificate required by Section 314 of the Trust Indenture Act, in the form, in the manner and at the times required by Section 314 of the Trust Indenture Act. 
 Section 2.5 Evidence of Compliance with Conditions Precedent. 
 The Guarantor shall provide to the Guarantee Trustee such evidence of compliance with such conditions precedent, if any, provided for in this Guarantee Agreement that relate to any of the matters set forth in
Section 314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an officer of the Guarantor pursuant to Section 314(c)(1) may be given in the form of an Officers’ Certificate. 
 Section 2.6 Events of Default; Waiver. 
 The Holders
of a Majority in Liquidation Amount of the Trust Preferred Securities may, by vote, on behalf of the Holders of all the Trust Preferred Securities, waive any past default or Event of Default and its consequences; provided that each Series of
Trust Preferred Securities shall be entitled, in the case of any default or Event of Default that affects such Series differently from the other Series, to vote separately as a Series with respect thereto. Upon such waiver, any such default or Event
of Default shall cease to exist, and any default or Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Guarantee Agreement, but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent therefrom. 
  


					
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 Section 2.7 Events of Default; Notice. 
 (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage prepaid, to the
Holders, notice of any such Event of Default actually known to a Responsible Officer of the Guarantee Trustee, unless such defaults have been cured before the giving of such notice, provided that, except in the case of a default in the
payment of a Guarantee Payment, the Guarantee Trustee shall be protected in withholding such notice if and so long as a committee of Responsible Officers of the Guarantee Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders. 
 (b) The Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless a Responsible
Officer charged with the administration of this Guarantee Agreement shall have obtained written notice of such Event of Default. 
 Section 2.8
Conflicting Interests. 
 The Trust Agreement and the Indenture shall be deemed to be specifically described in this Guarantee
Agreement for the purposes of clause (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act. 
 ARTICLE
III 
 Powers, Duties and Rights of the Guarantee Trustee 
 Section 3.1 Powers and Duties of the Guarantee Trustee. 
 (a) This Guarantee Agreement shall be held
by the Guarantee Trustee for the benefit of the Holders, and the Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except a Holder exercising his or her rights pursuant to Section 5.4(iv) or to a Successor Guarantee
Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically vest in any Successor Guarantee Trustee, upon acceptance
by such Successor Guarantee Trustee of its appointment hereunder, and such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor
Guarantee Trustee. 
 (b) If an Event of Default has occurred and is continuing, the Guarantee Trustee shall enforce this Guarantee Agreement
for the benefit of the Holders. 
 (c) The Guarantee Trustee, before the occurrence of any Event of Default and after the curing of all
Events of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee Agreement, and no implied covenants shall be read into this Guarantee Agreement against the Guarantee Trustee. In
case an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.6), the Guarantee Trustee shall exercise such of the rights and powers vested in it by this Guarantee Agreement, and use the same degree of care and
skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 
  


					
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 (d) No provision of this Guarantee Agreement shall be construed to relieve the Guarantee Trustee from
liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
 (i)
prior to the occurrence of any Event of Default and after the curing or waiving of all such Events of Default that may have occurred: 
 (A) the duties and obligations of the Guarantee Trustee shall be determined solely by the express provisions of this Guarantee Agreement, and the Guarantee Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Guarantee Agreement; and 
 (B) in the absence of bad faith
on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and
conforming to the requirements of this Guarantee Agreement (but in the case of any such certificates or opinions that by any provision hereof or of the Trust Indenture Act are specifically required to be furnished to the Guarantee Trustee, the
Guarantee Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Guarantee Agreement); 
 (ii) the Guarantee Trustee, its officers, directors, shareholders, employees and agents shall not be liable for any error of judgment made
in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be proved that the Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made; 
 (iii) the Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of not less than a Majority in Liquidation Amount of the relevant Series of Trust Preferred Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Guarantee
Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee Agreement; and 
 (iv) no
provision of this Guarantee Agreement shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers.

 Section 3.2 Certain Rights of Guarantee Trustee. 
 (a) Subject to the provisions of Section 3.1: 
 (i) The Guarantee Trustee may
conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, judgment, bond, debenture, note, other evidence
of indebtedness or other paper or document (including e-mail, facsimile or other electronic transmission) reasonably believed by it to be genuine and to have been signed, sent or presented by the proper Person or Persons (without being required to
determine the correctness of any fact stated therein). 
 (ii) Any direction or act of the Guarantor contemplated by this
Guarantee Agreement shall be sufficiently evidenced by an Officers’ Certificate unless otherwise prescribed herein. 
  


					
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 (iii) Whenever, in the administration of this Guarantee Agreement, the Guarantee Trustee
shall deem it desirable that a matter be proved or established before taking, suffering or omitting to take any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its
part, request and rely upon an Officers’ Certificate which, upon receipt of such request from the Guarantee Trustee, shall be promptly delivered by the Guarantor. 
 (iv) The Guarantee Trustee may consult with legal counsel of its own section, and the advice or opinion of such legal counsel, in writing
or subsequently confirmed in writing, with respect to legal matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance with such
advice or opinion. Such legal counsel may be legal counsel to the Guarantor or any of its Affiliates and may be one of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this
Guarantee Agreement from any court of competent jurisdiction. 
 (v) The Guarantee Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Guarantee Agreement at the request or direction of any Holder unless such Holder shall have provided to the Guarantee Trustee such adequate security and indemnity satisfactory to the
Guarantee Trustee against the costs, expenses (including attorneys’ fees and expenses) and liabilities that might be incurred by it in complying with such request or direction, including such reasonable advances as may be requested by the
Guarantee Trustee; provided that nothing contained in this Section 3.2(a)(v) shall be taken to relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by
this Guarantee Agreement. 
 (vi) The Guarantee Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 
 (vii) The
Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the
part of any such agent or attorney appointed with due care by it hereunder. 
 (viii) Whenever in the administration of this
Guarantee Agreement the Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders,
(B) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (C) shall be fully protected in acting in accordance with such instructions. 
 (b) No provision of this Guarantee Agreement shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such
act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be construed to be a duty to act in accordance with such power and authority. 
  


					
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 Section 3.3 Indemnity. 
 The Guarantor agrees to indemnify the Guarantee Trustee, its officers, directors, shareholders, employees and agents for, and to hold them harmless against, any loss, liability or expense incurred without negligence
or bad faith on the part of the Guarantee Trustee arising out of or in connection with the acceptance or administration of this Guarantee Agreement, including the costs and expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder. The Guarantee Trustee will not claim or exact any lien or charge on any Guarantee Payments as a result of any amount due to it under this Guarantee Agreement. This indemnity
shall survive the termination of this Guarantee Agreement or the earlier resignation or removal of the Guarantee Trustee. 
 ARTICLE IV

 Guarantee Trustee 
 Section 4.1
Guarantee Trustee; Eligibility. 
 (a) There shall at all times be a Guarantee Trustee that shall: 
 (i) not be an Affiliate of the Guarantor; and 
 (ii) be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least
$50,000,000, and shall be a corporation meeting the requirements of Section 310(a) of the Trust Indenture Act. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or
examining authority, then, for the purposes of this Section 4.1 and to the extent permitted by the Trust Indenture Act, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. 
 (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under
Section 4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in Section 4.2 (c). 
 (c)
If the Guarantee Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in all respects comply with the provisions of
Section 310(b) of the Trust Indenture Act. 
 Section 4.2 Appointment, Removal and Resignation of the Guarantee Trustee. 
 (a) Subject to Section 4.2(b), the Guarantee Trustee may be removed by the Guarantor (i) without cause at any time when an Event of Default has
not occurred and is not continuing and (ii) at any time when the Guarantee Trustee ceases to be eligible to act as the Guarantee Trustee pursuant to Section 4.1 hereof or becomes incapable of acting or is adjudged a bankrupt or insolvent
or a receiver of the Guarantee Trustee or of its property is appointed or any public officer takes charge or control of the Guarantee Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation. 

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


					
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 (c) The Guarantee Trustee may resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation shall not take effect until a Successor Guarantee Trustee has been appointed and has accepted such appointment by instrument in writing
executed by such Successor Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee Trustee. 
 (d) If no Successor
Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 4.2 within 60 days after delivery to the Guarantor of an instrument of resignation, the resigning Guarantee Trustee may petition, at the expense of
the Guarantor, any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee. 
 ARTICLE V 
 Guarantee

 Section 5.1 Guarantee. 
 The
Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by or on behalf of the Issuer Trust), as and when due, regardless of any defense, right of set-off
or counterclaim which the Issuer Trust may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer Trust to pay
such amounts to the Holders. 
 Section 5.2 Waiver of Notice and Demand. 
 The Guarantor hereby waives notice of acceptance of this Guarantee Agreement and of any liability to which it applies or may apply, presentment, demand
for payment, any right to require a proceeding first against the Guarantee Trustee, the Issuer Trust or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands. 
 Section 5.3 Obligations Not Affected. 
 The obligations, covenants, agreements and duties of the Guarantor under this Guarantee Agreement shall in no way be affected or impaired by reason of the happening from time to time of any of the following:

 (a) the release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer Trust of any express or
implied agreement, covenant, term or condition relating to the Trust Preferred Securities to be performed or observed by the Issuer Trust; 
 (b) the extension of time for the payment by the Issuer Trust of all or any portion of the Distributions (other than an extension of time for payment of Distributions that results from the extension of any interest payment period on the
Notes as provided in the Indenture), Redemption Price, Liquidation Distribution or any other sums payable under the terms of the Trust Preferred Securities or the extension of time for the performance of any other obligation under, arising out of,
or in connection with, the Trust Preferred Securities; 
  


					
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 (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or
exercise any right, privilege, power or remedy conferred on the Holders pursuant to the terms of the Trust Preferred Securities, or any action on the part of the Issuer Trust granting indulgence or extension of any kind; 
 (d) the voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer Trust or any of the assets of the Issuer Trust; 
 (e) any invalidity of, or defect or deficiency in, the Trust Preferred Securities; 
 (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 
 (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances. 
 There shall be no obligation of the Holders to give notice to, or obtain the consent of, the Guarantor with respect to the happening of any of the foregoing. 
 Section 5.4 Rights of Holders. 
 The Guarantor expressly acknowledges that: (i) this Guarantee
Agreement will be deposited with the Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in
Liquidation Amount of the Trust Preferred Securities of the affected Series have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee Agreement or
exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee Agreement; and (iv) any Holder may institute a legal proceeding directly against the Guarantor to enforce its rights under this Guarantee Agreement, without
first instituting a legal proceeding against the Issuer Trust or any other Person. 
 Section 5.5 Guarantee of Payment. 
 This Guarantee Agreement creates a guarantee of payment and not of collection. This Guarantee Agreement will not be discharged except by payment of the
Guarantee Payments in full (without duplication of amounts theretofore paid by the Issuer Trust) or upon the distribution of Notes to Holders as provided in the Trust Agreement. 
 Section 5.6 Subrogation. 
 The Guarantor shall be subrogated to all (if any) rights of the Holders
against the Issuer Trust in respect of any amounts paid to the Holders by the Guarantor under this Guarantee Agreement and shall have the right to waive payment by the Issuer Trust pursuant to Section 5.1; provided, however, that the
Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any rights which it may acquire by way of subrogation or any indemnity, 

  


					
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reimbursement or other agreement, in all cases as a result of payment under this Guarantee Agreement, if, at the time of any such payment, any amounts are
due and unpaid under this Guarantee Agreement. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders.

 Section 5.7 Independent Obligations. 
 The Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Issuer Trust with respect to the Trust Preferred Securities and that the Guarantor shall be liable as principal and as debtor hereunder to
make Guarantee Payments pursuant to the terms of this Guarantee Agreement notwithstanding the occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof. 
 ARTICLE VI 
 Covenants and
Subordination 
 Section 6.1 Subordination. 
 The obligations of the Guarantor under this Guarantee Agreement will constitute unsecured obligations of the Guarantor and at all times prior to the Stock Purchase Date will rank subordinate and junior in right of payment and upon
liquidation to all Senior Debt of the Guarantor to the extent and in the manner set forth in the Indenture with respect to the Notes, and the provisions of the Indenture will apply, mutatis mutandis, to the obligations of the Guarantor
hereunder. The obligations of the Guarantor hereunder do not constitute Senior Debt of the Guarantor. 
 Section 6.2 Pari Passu Guarantees.

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


					
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 ARTICLE VII 
 Termination 
 Section 7.1 Termination. 
 This Guarantee Agreement shall terminate and be of no further force and effect upon (i) full payment of the Redemption Price of all Trust Preferred
Securities or (ii) full payment of the amounts payable in accordance with the Trust Agreement upon liquidation of the Issuer Trust. Notwithstanding the foregoing, this Guarantee Agreement will continue to be effective or will be reinstated, as
the case may be, if at any time any Holder must restore payment of any sums paid with respect to Trust Preferred Securities or this Guarantee Agreement. 
 ARTICLE VIII 
 Miscellaneous 
 Section 8.1 Successors and Assigns. 
 All guarantees and agreements contained in this Guarantee
Agreement shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Trust Preferred Securities then outstanding. Except in connection with (i) a
consolidation, merger or sale involving the Guarantor that is permitted under the Indenture and pursuant to which the successor or assignee agrees in writing to perform the Guarantor’s obligations hereunder or (ii) the First Step Merger,
the Guarantor shall not assign its obligations hereunder. 
 Section 8.2 Amendments. 
 This Guarantee Agreement may be amended by a written instrument executed by the Guarantor and the Guarantee Trustee. 
 Except with respect to any changes which do not adversely affect the rights of the Holders in any material respect (in which case no consent of the
Holders will be required), this Guarantee Agreement may only be amended with the prior approval of the Holders of not less than a Majority in Liquidation Amount of the outstanding Trust Preferred Securities. The holders of each Series of Trust
Preferred Securities will also be entitled to vote separately as a class to the extent that any proposed amendment would not affect them in the same or substantially the same manner. The provisions of Article VI of the Trust Agreement concerning
meetings of the Holders shall apply to the giving of such approval. 
 Section 8.3 Notices. 
 Any notice, request or other communication required or permitted to be given hereunder shall be in writing, duly signed by the party giving such notice,
and delivered, telecopied or mailed by first-class mail as follows: 
 (a) if given to the Guarantor, to the address set forth below or such
other address, facsimile number or to the attention of such other Person as the Guarantor may give notice to the Guarantee Trustee and the Holders: 
 Mellon Financial Corporation One Mellon Center 
 500 Grant Street 
 Pittsburgh, Pennsylvania 15258 
 Attention:
Secretary 
 Facsimile: (412) 234-1813 
  


					
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 (b) if given to the Issuer Trust, in care of the Guarantee Trustee, at the Issuer Trust’s (and the
guarantee Trustee’s) address set forth below or such other address as the Guarantee Trustee on behalf of the Issuer may give notice to the Guarantor and Holders: 
 Manufacturers and Traders Trust Company 
 25 South Charles Street-16th Floor 
 Mail Code: MD2-CS58 
 Baltimore, MD 21201

 with a copy to: 
 Mellon
Capital IV 
 c/o Mellon Financial Corporation 
 One Mellon Center 
 500 Grant Street 
 Pittsburgh, Pennsylvania 15258 
 Attention:
Secretary 
 Facsimile: (412) 234-1813 
 (c) if given to any Holder, at the address set forth on the books and records of the Issuer Trust. 
 All
notices hereunder shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first-class mail, postage prepaid, except that if a notice or other document is refused delivery or cannot be delivered
because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to deliver. 
 Section 8.4 Benefit. 
 This Guarantee Agreement is solely for the benefit of the Holders and is not
separately transferable from the Trust Preferred Securities. 
 Section 8.5 Interpretation. 
 In this Guarantee Agreement, unless the context otherwise requires: 
 (a) capitalized terms used in this Guarantee Agreement but not defined in the preamble hereto have the respective meanings assigned to them in Section 1.1; 
 (b) a term defined anywhere in this Guarantee Agreement has the same meaning throughout; 
 (c) all references to “the Guarantee Agreement” or “this Guarantee Agreement” are to this Guarantee Agreement as modified,
supplemented or amended from time to time; 
 (d) all references in this Guarantee Agreement to Articles and Sections are to Articles and
Sections of this Guarantee Agreement unless otherwise specified; 
  


					
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 (e) a term defined in the Trust Indenture Act has the same meaning when used in this Guarantee Agreement
unless otherwise defined in this Guarantee Agreement or unless the context otherwise requires; 
 (f) a reference to the singular includes
the plural and vice versa; and 
 (g) the masculine, feminine or neuter genders used herein shall include the masculine, feminine and neuter
genders. 
 Section 8.6 Governing Law. 
 THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF. 
 * * * * 
 This instrument may be executed in
any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  


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

			
	 MELLON FINANCIAL CORPORATION
 as Guarantor

		
	By:	 	  
		 	Name:
		 	Title:


  

			
	 MANUFACTURERS AND TRADERS TRUST COMPANY
 individually and as Guarantee Trustee

		
	By:	 	  
		 	Name:
		 	Title:


  


					
		 		  	GUARANTEE AGREEMENT