Document:

DEFERRED COMPENSATION AGREEMENT

         THIS AGREEMENT, amended and restated on this ____ day of June, 2003 (as
amended and restated, the "Agreement"), by and between Provident Bank, having
its principal offices at 400 Rella Boulevard, Montebello, New York 10901 (the
"Bank"), and __________________ (the "Director").

         WHEREAS, the Director serves or has served as a director of the Bank,
and

         WHEREAS, the Bank and the Director previously entered into an agreement
whereby the Bank agreed to provide to the Director a vehicle under which the
Director can defer receipt of any or all directors' fees or incentive payments
payable by the Bank; and

         WHEREAS, in connection with the reorganization of the Bank into mutual
holding company form as a subsidiary of Provident Bancorp, Inc., a mid-tier
stock holding company ("Company"), the Bank and the Director amended the
Agreement to permit the Director to express an investment preference to have all
or a portion of his account invested in stock of the Company or other investment
options as may be made available to him from time to time; and

         WHEREAS, in connection with the addition of certain other investment
options which may be requested by a Director, the Bank and the Director desire
to further amend the Agreement to conform it to the manner in which the
Director's deferral arrangement will currently operate; and

         WHEREAS, Section 5.1 of the Agreement permits the Agreement to be
amended from time to time.

         NOW, THEREFORE, in consideration of the mutual covenants and
obligations set forth in this Agreement, the Bank and the Director hereby agree
as follows:

1.   DEFINITION OF TERMS AND CONSTRUCTION
     ------------------------------------

     1.1. Definitions. Unless a different meaning is plainly implied by the
context, the following terms as used in this Agreement shall have the following
meanings:

          (a) "Beneficiary" means the person or persons (and their heirs) as
designated by the Director in a written instrument submitted to the Director of
Human Resources of the Bank to whom the deceased Director's benefits are
payable. In the event the Director fails to properly designate a Beneficiary,
his Beneficiary shall be the person or persons in the first of the following
classes of successive preference surviving at the death of the Director: the
Director's (1) surviving spouse or (2) estate.

          (b) "Board of Directors" shall mean the Board of Directors of the
Bank.

<PAGE>

          (c) "Change in Control" shall mean a change in control of a nature
that: (i) would be required to be reported in response to Item 1(a) of the
current report on Form 8-K, as in effect on the date hereof, pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"); or (ii)
results in a Change in Control of the Bank or the Company within the meaning of
the Home Owners Loan Act, as amended ("HOLA"), and applicable rules and
regulations promulgated thereunder, as in effect at the time of the Change in
Control; or (iii) without limitation such a Change in Control shall be deemed to
have occurred at such time as (a) any "person" (as the term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 25% or more of the combined voting power
of Company's outstanding securities except for any securities purchased by the
Bank's employee stock ownership plan or trust; or (b) individuals who constitute
the Board on the date hereof (the "Incumbent Board") cease for any reason to
constitute at least a majority thereof, provided, however, that this sub-section
(b) shall not apply if the Incumbent Board is replaced by the appointment by a
Federal banking agency of a conservator or receiver for the Bank provided
further, that any person becoming a director subsequent to the date hereof whose
election was approved by a vote of at least three-quarters of the directors
comprising the Incumbent Board, or whose nomination for election by the
Company's stockholders was approved by the same Nominating Committee serving
under an Incumbent Board, shall be, for purposes of this clause (b), considered
as though he were a member of the Incumbent Board; or (c) a plan of
reorganization, merger, consolidation, sale of all or substantially all the
assets of the Bank or the Company or similar transaction in which the Bank or
Company is not the surviving institution occurs; or (d) a proxy statement
soliciting proxies from stockholders of the Company, by someone other than the
current management of the Company, seeking stockholder approval of a plan of
reorganization, merger or consolidation of the Company or similar transaction
with one or more corporations as a result of which the outstanding shares of the
class of securities then subject to the Agreement are to be exchanged for or
converted into cash or property or securities not issued by the Company; or (e)
a tender offer is made for 25% or more of the voting securities of the Company
and the shareholders owning beneficially or of record 25% or more of the
outstanding securities of the Company have tendered or offered to sell their
shares pursuant to such tender offer and such tendered shares have been accepted
by the tender offeror.

          (d) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time, or any successor statute.

          (e) "Committee" shall mean the Committee appointed to administer the
Agreement pursuant to Article VII.

          (f) "Compensation" shall mean the amount of directors' fees paid by
the Bank to the Director during a Deferral Year prior to reduction for
Compensation Deferrals made under this Agreement. In the case of management,
compensation shall be defined as incentive payments, paid by the Bank to the
Director, in his capacity as an employee during a Deferral Year prior to
reduction for Compensation Deferrals made under this Agreement.

          (g) "Compensation Deferral" shall mean the amount or amounts of the
Director's Compensation deferred under the provisions of Section 3 of this
Agreement.

                                      -2-
<PAGE>

          (h) "Deferral Account" shall mean the account maintained to reflect
the Director's Compensation Deferrals made pursuant to Section 3 hereof and any
other credits or debits thereto.

          (i) "Deferral Year" shall mean each calendar year during which the
Director makes, or is entitled to make, Compensation Deferrals under Section 3
hereof.

          (j) "Hardship" shall mean a sudden or unexpected illness, accident or
similar event affecting the Director, his Beneficiary or a family member, which
is beyond the control of the Director, his Beneficiary and any family member and
which causes the Director or, if applicable, his Beneficiary to incur a severe
financial hardship, as determined by the Committee (acting without the
participation of the requesting Director, if he is a member of the Committee) in
its sole discretion. For purposes of the above, the members of the Director's or
his Beneficiary's families shall include their spouses, lineal descendants and
ancestors.

          (k) "Investment Options" or "Deemed Investments" shall mean the
investment options designated by the Committee from which the Director may
express a preference for the constructive investment of his Account. Investment
Options may include, for example, (i) equity markets (including the stock of the
Company or its successors), (ii) money market securities (i.e., Treasury bills
or other obligations of the United States government or any state government or
municipality, certificates of deposit), (iii) assets which can be liquidated
within sixty (60) days with no loss of principal; mutual funds or time deposits
issued by the Company or other financial institutions. Investment Options are
subject to change from time to time as the Committee, in its discretion, deems
necessary or appropriate. Investment Options shall be used as earning indices in
order to determine the gain or loss in the Director's Deferral Account. No
provision of the Agreement shall be construed as giving any Director an interest
in any of the Investment Options nor shall any provision require that the
Company make any investment in any option.

          (l) "Trustee" shall mean the Trustee, if any, of any grantor trust
which may be established by the Bank to accumulate assets for the purpose of
providing the benefits promised under this Agreement.

          (m) "Valuation Date" shall mean the last business day of each calendar
quarter and any other day upon which the Bank makes a valuation of the Deferral
Account.

     1.2. Plurals and Gender. Where appearing in this Agreement the singular
shall include the plural and the masculine shall include the feminine, and vice
versa, unless the context clearly indicates a different meaning.

     1.3. Headings. The headings and sub-headings in this Agreement are inserted
for the convenience of reference only and are to be ignored in any construction
of the provisions hereof.

2.   PERIOD DURING WHICH COMPENSATION DEFERRALS ARE PERMITTED
     --------------------------------------------------------

     2.1. Commencement of Compensation Deferrals. The Director may elect, on a
form provided by, and submitted to, the Director of Human Resources of the Bank,
to commence Compensation Deferrals under Section 3 hereof for the Deferral Year
beginning immediately following the later of (i) the date this Agreement is
executed or (ii) the date such form is submitted to the Director of Human
Resources of the Bank.

                                      -3-
<PAGE>

     2.2. Termination of Deferrals. The Director shall not be eligible to make
Compensation Deferrals after the earliest of the following dates:

          (a) The date on which he ceases to serve as a Director of the Bank; or

          (b) The effective date of the termination of this Agreement.

3.   COMPENSATION DEFERRALS
     ----------------------

     3.1. Compensation Deferral Elections.

          (a) Prior to the first day of any Deferral Year, the Director may
elect, on the form described in Section 2.1 hereof, to defer the receipt of all
or a portion of his Compensation for such Deferral Year. Such writing shall set
forth the amount of such Compensation Deferral (in whole percentage or dollar
amounts) and may set forth a specific type of his Compensation (i.e., based on
the activity for which a specific portion of Compensation is paid) from which
such Compensation Deferrals are to be made. Such election shall continue in
effect for all subsequent Deferral Years unless it is canceled or modified as
provided below.

          (b) Compensation Deferrals shall be withheld pro rata from each
payment of Compensation (or payment of a specific type of Compensation, if
applicable) by the Bank to the Director based upon the percentage or dollar
amount elected by the Director under Section 3.1 (a) hereof.

          (c) The Director may cancel or modify the amount of his Compensation
Deferrals on a prospective basis by submitting to the Director of Human
Resources of the Bank a revised Compensation Deferral election form. Such change
will be effective as of the first day of the Deferral Year following the date
such revision is submitted to the Director of Human Resources of the Bank.

     3.2. Valuation of Deferral Account.

          (a) The Bank shall establish a bookkeeping Deferral Account to which
will be credited an amount equal to the Director's Compensation Deferrals under
this Agreement. Compensation Deferrals shall be allocated to the Deferral
Account on the first business day following the date such Compensation Deferrals
are withheld from the Director's Compensation. As of the date of this Agreement,
the Deferral Account also shall be credited with the amounts credited to the
Director under each other outstanding elective deferred compensation agreement
entered into by and between the Bank and the Director which is superseded by
this Agreement pursuant to Section 6.10 hereof. The Deferral Account shall be
debited to reflect any distributions from such Account. Such debits shall be
allocated to the Deferral Account as of the date such distributions are made.

          (b) As of each Valuation Date, income, gain and loss equivalents
(determined as if the Deferral Account is invested in the manner set forth under
Section 3.3, below) attributable to the period following the immediately

                                      -4-
<PAGE>

preceding Valuation Date shall be credited to and/or deducted from the
Director's Deferral Account.

     3.3. Investment of Deferral Account Balance. Subject to such limitations as
may from time to time be required by law or imposed by the Committee, and
subject to such operating rules and procedures as may be imposed from time to
time by the Committee, each Director may express to the Committee a preference
as to how the Director's Deferral Account should be constructively invested
among the Investment Options.

          (a) Any initial or subsequent expression of investment preference
shall be in writing, on a form provided by and filed with the Committee, and
shall be subject to such rules and procedures as the Committee may promulgate
from time to time, including rules as to when an expression of investment
preference will be effective. In the event a grantor trust has been established,
the Committee may forward the Directors expression of investment preference to
the Trustee.

          (b) The contributions and credits and other amounts added to a
Director's Deferral Account may be constructively invested in accordance with
the then effective designation of investment preferences and (i) as of the
effective date of any new investment preference, all or a portion of the
Director's Deferral Account at that date may be constructively reallocated among
the designated Investment Options according to the directions specified in the
investment preference unless and until a subsequent investment preference shall
be filed and become effective. Unless otherwise announced by the Committee,
investment preferences may be changed no more than four (4) times per calendar
year and must be received by the Committee no less than fifteen (15) days before
the effective date of the change.

          (c) If the Committee receives an initial or revised investment
preference which it deems to be incomplete, unclear or improper, the Director's
investment preference then in effect shall remain in effect (or, in the case of
a deficiency in an initial investment preference) until the next Valuation Date,
unless the Committee provides for, and permits the application of, corrective
action prior to that time. The Committee shall announce to the Director a
default Investment Option, which shall be substituted for the Director's
investment preference for any portion of his Deferral Account from which he
fails to file an investment preference.

          (d) All investment preferences shall be advisory and shall not bind
the Bank, the Committee, or Trustee (if any). The Bank shall not be obligated to
invest any funds in connection with this Agreement. If, however, the Bank
chooses to establish a grantor trust in which to invest funds to provide for its
liabilities under this Agreement, the Trustee shall have complete discretion as
to investment.

          (e) If a decision is made to follow the Directors' expressions of
investment preference, each Director's Deferral Account will be adjusted in the
following manner. Each Director's Deferral Account will be credited with
earnings or losses as if the Deferral Account were actually invested in
accordance with the Director's expression of investment preference, as follows.
As of each Valuation Date, the net earnings or losses of each Investment Option
since the preceding Valuation Date shall be allocated among all Deferral
Accounts in accordance with the preferences indicated by each Director as though
the Deferral Accounts had been invested in the Investment Option in accordance

                                      -5-

<PAGE>

with each Director's indicated preference. For purposes of this allocation, the
Deferral Account of each Director will consist of the balance of the Deferral
Account as of the preceding Valuation Date, adjusted (i) by adding to the
balance any elective deferred Compensation made since the preceding Valuation
Date and (ii) by subtracting from such balance all distributions made to the
Director or to a Beneficiary. Each Deferral Account shall be further adjusted to
reflect any changes in investment preferences which have become effective since
the last Valuation Date.

          (f) If it is determined that the constructive value of a Deferral
Account as of any date on which distributions are to be made differs materially
from the constructive value of the Deferral Account on the prior Valuation Date
upon which the distribution is to be based, the Committee, in its discretion,
shall have the right to designate any date in the interim as a Valuation Date
for the purpose of constructively revaluing the Deferral Account so that the
Deferral Account from which the distribution is being made will, prior to the
distribution, reflect its share of such material difference in value. Similarly,
the Committee may adopt a policy of providing for regular interim valuations
without regard to the materiality of changes in the value of the Deferral
Accounts.

4.   DISTRIBUTIONS FROM DEFERRAL ACCOUNT
     -----------------------------------

     4.1. (a) In General. Distributions from the Director's Deferral Account
shall be paid in quarterly installments over a period of five (5) years
beginning on the first day of the first calendar quarter coincident with or next
following the Director's mandatory retirement date, except in the event of an
accelerated distribution following a Change in Control or due to Hardship, in
accordance with Section 4.3 or 4.5 hereof. Each quarterly installment shall be
in an amount equal to the product of the then current balance in the Director's
Deferral Account multiplied by a fraction, the numerator of which shall be "one"
and the denominator of which shall be the number of remaining quarterly payments
to which the Director is entitled. A Director's mandatory retirement date shall
be the date determined under the retirement policy set by the Bank and
applicable to the Director.

          (b) Request for Alternate Distribution. At any time on or before
twenty-four (24) months prior to a Director's mandatory retirement date, a
Director may request in writing, an earlier or later commencement of
distributions from his Deferral Account so long as the new distribution date is
at least twenty-four (24) months after the Director files such written request.
In addition, a Director may also request that his Deferral Account be paid in
quarterly installments over a period of no more than ten (10) years, rather than
five (5) years. The Committee (acting without the participation of the
requesting Director, if he is a member of the Committee) may, in its sole
discretion, decide whether to grant any request to accelerate or delay the
commencement of distributions or to distribute the Deferral Account over a
shorter or longer period, provided however, that distribution shall not commence
prior to the date on which a Director attains age sixty-five (65).

     4.2. Death Prior to Complete Distribution of Deferral Account. Upon the
death of the Director prior to the commencement of the distribution of the
amounts credited to his Deferral Account, the balance of such Account shall be
distributed to his Beneficiary in the manner set forth under Section 4.1 hereof
beginning on the first day of the first calendar quarter coincident with or next

                                      -6-
<PAGE>

following the date the Director dies. In the event of the death of the Director
after the commencement of such distribution, but prior to the complete
distribution of his Deferral Account, the balance of the amounts credited to his
Deferral Account shall be distributed to his Beneficiary over the remaining
period during which such amounts were distributable to the Director under
Section 4.1 hereof. Notwithstanding the above, the Board of Directors, in its
sole discretion, may accelerate the distribution of the Deferral Account upon
the Beneficiary's petition for acceleration based upon his incurring a Hardship,
in accordance with Section 4.5.

     4.3. Accelerated Distribution Following a Change in Control.
Notwithstanding any other provision of this Agreement, at any time after a
Change in Control, upon written request to the Committee and with the consent of
the Committee, a Director shall be entitled to request a lump sum distribution
of the Director's vested Deferral Account balance. The Committee shall make a
determination on distribution within thirty (30) days of receipt of the written
request from the Director. The amount payable under this Section, if approved by
the Committee, shall be paid in a lump sum within thirty (30) days following
consent to such payment by the Board of Directors and shall be the fair market
value of the Deferral Account balance on the date of distribution.

     4.4. Payments Due Missing Persons. The Bank shall make a reasonable effort
to locate all persons entitled to benefits under this Agreement. However,
notwithstanding any provisions of this Agreement to the contrary, if, after a
period of five (5) years from the date such benefit shall be due, any such
persons entitled to benefits have not been located, their rights under this
Agreement shall stand suspended. Before this provision becomes operative, the
Bank shall send a certified letter to all such persons to their last known
address advising them that their benefits under this Agreement shall be
suspended. Any such suspended amounts shall be held by the Bank for a period of
three (3) additional years (or a total of eight (8) years from the time the
benefits first become payable) and thereafter, if unclaimed, such amounts shall
be forfeited.

     4.5. Hardship Distributions. A Director, who believes he has incurred a
Hardship may petition the Committee for a Hardship distribution. Upon a finding
that the Director has suffered a Hardship, the Committee may, in its sole
discretion, make distributions from the Director's Deferral Account prior to the
time specified for payment of benefits under the Agreement. The amount of such
distribution shall be limited to the amount reasonably necessary to meet the
requirements during the financial Hardship.

5.   AMENDMENTS AND TERMINATION
     --------------------------

     5.1. Amendments.

          (a) The Bank and the Director may, by a written instrument signed by
both such parties, amend this Agreement at any time any manner except that no
such amendment shall have the effect of accelerating distributions of a
Director's Deferral Account other than as provided in Article 4 hereof.

          (b) The Bank reserves the right to amend, in whole or in part, and in
any manner, any or all of the provisions of this Agreement by action of its
Board of Directors for the purposes of complying with any provision of the Code
or any other technical or legal requirements, provided that:

                                      -7-
<PAGE>

              (1)   No such amendment shall make it possible for any part of
the Director's Deferral Account to be used for, or diverted to, purposes other
than for the exclusive benefit of the Director or his Beneficiaries, except to
the extent otherwise provided in this Agreement; and

              (2)   No such amendment may reduce the amount of the Director's
Deferral Account as of the effective date of such amendment.

6.   MISCELLANEOUS.
     -------------

     6.1. Rights of Creditors.

          (a) This Agreement is unfunded. Neither the Director nor any other
persons shall have any interest in any specific asset or assets of the Bank by
reason of any Deferral Account hereunder, nor any rights to receive distribution
of his Deferral Account except and as to the extent expressly provided
hereunder. The Bank shall not be required to purchase, and shall not hold or
dispose of any investments pursuant to this Agreement.

          (b) The rights of the Director and the Beneficiaries to the amounts
held in the Deferral Account are unsecured and shall be subject to the creditors
of the Bank. With respect to the payment of amounts held under the Deferral
Account, the Director and his Beneficiaries have the status of unsecured
creditors of the Bank. This Agreement is executed on behalf of the Bank by an
officer of the Bank as such and not individually. Any obligation of the Bank
hereunder shall be an unsecured obligation of the Bank and not of any other
person.

     6.2. Agents. The Bank may employ agents and provide for such clerical,
legal, actuarial, accounting, advisory or other services as it deems necessary
to perform its duties under this Agreement. The Bank shall bear the cost of such
services and all other expenses it incurs in connection with the administration
of this Agreement.

     6.3. Incapacity. If the Bank shall receive evidence satisfactory to it that
the Director or any Beneficiary entitled to receive any benefit under the
Agreement is, at the time when such benefit becomes payable, a minor, or is
physically or mentally incompetent to receive such benefit and to give a valid
release therefor, the Bank may make payment of such benefit otherwise payable to
the Director or Beneficiary to the conservator, executor, committee or other
legal representative of the estate of the Director or Beneficiary, and the
release of such other person or institution shall be a valid and complete
discharge for the payment of such benefit.

     6.4. Cooperation of Parties. All parties to this Agreement and any person
claiming any interest hereunder agree to perform any and all acts and execute
any and all documents and papers which are necessary or desirable for carrying
out this Agreement or any of its provisions.

     6.5. Governing Law. This Agreement is made and entered into in the State of
New York and all matters concerning its validity, construction and
administration shall be governed by the laws of the State of New York.

     6.6. Nonguarantee of Directorship. Nothing contained in this Agreement
shall be construed as a contract or guarantee of the right of the Director to
be, or remain as, a director of the Bank or to receive any, or any particular
rate of, compensation.

                                      -8-
<PAGE>

     6.7. Counsel. The Bank may consult with legal counsel with respect to the
meaning or construction of this Agreement, its obligations or duties hereunder
or with respect to any action or proceeding or any question of law, and it shall
be fully protected with respect to any action taken or omitted by it in good
faith pursuant to the advice of legal counsel.

     6.8. Spendthrift Provision. The Director's and Beneficiaries' interests in
the Deferral Account may not be anticipated, sold, encumbered, pledged,
mortgaged, charged, transferred, alienated, assigned nor become subject to
execution, garnishment or attachment and any attempt to do so by any person
shall render the Deferral Amount immediately forfeitable.

     6.9. Notices. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered personally or mailed by United
States registered or certified mail, return receipt requested, postage prepaid,
or by nationally recognized overnight delivery service providing for a signed
return receipt, addressed to the Director at the home address set forth in the
Bank's records and to the Bank at the address set forth on the first page of
this Agreement, provided that all notices to the Bank shall be directed to the
attention of the Director of Human Resources of the Bank or to such other
address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

     6.10. Entire Agreement. This Agreement contains the entire understanding
between the Bank and the Director with respect to the payment of non-qualified
elective deferred compensation by the Bank to the Director. Effective as of the
date hereof, this Agreement replaces, and supersedes, all other non-qualified
elective deferred compensation agreements by and between the Director and the
Bank.

     6.11. Interpretation of Agreement. Interpretations of, and determinations
related to, this Agreement made by the Bank in good faith, including any
determinations of the amounts of the Deferral Account, shall be conclusive and
binding upon all parties; and the Bank shall not incur any liability to the
Director for any such interpretation or determination so made or for any other
action taken by it in connection with this Agreement in good faith.

     6.12. Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of, the Bank and its successors and assigns and to
the Director and his heirs, executors, administrators and personal
representatives.

     6.13. Severability. In the event any one or more provisions of this
Agreement are held to be invalid or unenforceable, such illegality or
unenforceability shall not affect the validity or enforceability of the other
provisions hereof and such other provisions shall remain in full force and
effect, unaffected by such invalidity or unenforceability.

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

     6.15. Indemnification. It is understood and agreed that the Director shall
indemnify and hold the Bank harmless from any and all costs, expenses or losses
incurred by the Bank as a result of implementing any actions pursuant to the
instructions or directions given by the Director.

                                      -9-
<PAGE>

     6.16. Trust Fund. The Bank shall be responsible for the payment of all
benefits provided under the Agreement. At its discretion, the Bank may establish
one or more trusts, with such trustees as the Board may approve, for the purpose
of providing for the payment of such benefits. Such trust may be irrevocable,
but the assets thereof shall be subject to the claims of the Bank's creditors,
as set forth in Section 6.1(b). To the extent any benefits provided under the
Agreement are actually paid from any trust, the Bank shall have no further
obligation with respect thereto, but to the extent not so paid, such benefits
shall remain the obligation of, and shall be paid by, the Bank.

7.   ADMINISTRATION
     --------------

     7.1. Committee: Duties. This Agreement shall be administered by the
Committee, which shall be appointed by the Board. The Committee shall have the
authority to make, amend, interpret, and enforce all appropriate rules and
regulations for the administration of this Agreement and decide or resolve any
and all questions, including interpretations of this Agreement, as may arise in
connection with the Agreement. A majority vote of the Committee members shall
control any decision.

     7.2. Agents. The Committee may, from time to time, employ other agents and
delegate to them such administrative duties as it sees fit, and may from time to
time consult with counsel who may be counsel to the Bank.

     7.3. Binding Effect of Decisions. The decision or action of the Committee
in respect to any question arising out of or in connection with the
administration, interpretation and application of the Agreement and the rules of
regulations promulgated hereunder shall be final, conclusive and binding upon
all persons having any interest in the Agreement.

     7.4. Indemnity of Committee. The Bank shall indemnify and hold harmless the
members of the Committee against any and all claims, loss, damage, expense or
liability arising from any action or failure to act with respect to this
Agreement, except in the case of gross negligence or willful misconduct.

                                      -10-
<PAGE>

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

                                        PROVIDENT BANK

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

                                        DIRECTOR

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

                                      -11-
<PAGE>Exhibit
4.01

 

 

 

 

 

 

LEHMAN
BROTHERS HOLDINGS INC.

AND

JPMORGAN
CHASE BANK,

as
Trustee

 

 

 

 

 

 

FIFTH
SUPPLEMENTAL INDENTURE

 

Dated
as of October 31, 2003

 

 

 

 

 

THIS FIFTH SUPPLEMENTAL
INDENTURE, dated as of October 31, 2003, is between LEHMAN BROTHERS HOLDINGS
INC., a corporation duly organized and existing under the laws of the State of
Delaware (the “Company”), and JPMORGAN CHASE BANK (formerly known as The Chase
Manhattan Bank and prior thereto as Chemical Bank), a banking corporation duly
organized and existing under the laws of the State of New York, acting as
Trustee under the Indenture referred to below (the “Trustee”).

W  I  T  N 
E  S  S  E  T  H

WHEREAS, the Company has
duly authorized the execution and delivery of an Indenture dated as of February
1, 1996 (the “Indenture”), as amended and supplemented, to provide for the
issuance from time to time of its unsecured notes or other evidences of
indebtedness to be issued in one or more series (the “Securities”), as in the
Indenture provided, up to such principal amount or amounts as may from time to
time be authorized in or pursuant to one or more resolutions of the Board of
Directors;

WHEREAS, the Company will
issue to Lehman Brothers Holdings Capital Trust IV, a Delaware statutory trust
(“Trust IV”), a series of Securities entitled the “6.375% Subordinated
Deferrable Interest Debentures due October 2052” (the “Subordinated
Debentures”);

WHEREAS, the Company has
duly authorized the execution and delivery of this Fifth Supplemental Indenture
in order to provide for certain supplements to the Indenture which shall only
be applicable to the Subordinated Debentures;

WHEREAS, all acts and things
necessary to make this Fifth Supplemental Indenture a valid agreement of the
Company according to its terms have been done and performed, and the execution
and delivery of this Fifth Supplemental Indenture have in all respects been
duly authorized;

NOW, THEREFORE, in
consideration of the premises, of the purchase and acceptance of the Securities
by the Holders thereof, and of the sum of one dollar duly paid to it by the
Trustee at the execution and delivery of these presents, the receipt whereof is
hereby acknowledged, the Company covenants and agrees with the Trustee to
supplement the Indenture, only for purposes of the Subordinated Debentures, as
follows:

SECTION 1.  
AMENDMENTS TO THE INDENTURE

1.1           Amendment to Section 101 of the Indenture.  Section 101 of the Indenture is hereby
amended solely with respect to the Subordinated Debentures by adding the
following new definitions thereto, in the appropriate alphabetical sequence:

“Debentures” means the
Company’s 6.375% Subordinated Deferrable Interest Debentures due October 2052.

“Declaration” means the
Amended and Restated Declaration of Trust, dated as of October 31, 2003 among
the Company and the trustees named therein.

 

 

2

 

“Trust IV” means Lehman
Brothers Holdings Capital Trust IV, a Delaware statutory trust.

1.2           Amendment to Section 501 of the Indenture.  Section 501 is amended by deleting the “or”
at the end of paragraph (6) and inserting “; or” at the end of paragraph (7) in
place of the period and adding the following at the end thereof:

“(8) Trust IV shall have
voluntarily or involuntarily dissolved, wound-up its business or otherwise
terminated its existence except in connection with (i) distribution of the
Securities held by Trust IV to holders of its securities in liquidation of such
holders’ interests in Trust IV, (ii) redemption of all of the securities issued
by Trust IV, or (iii) mergers, consolidations or amalgamations, each as
permitted by Section 3.15 of the Declaration.”

1.3           Amendment to Section 902 of the Indenture.  Section 902 is amended to add the following
at the end thereof:

“For purposes of this
Section 902, if the Debentures are held by Trust IV, the consent of not less
than 66 2/3% of the aggregate liquidation amount of the securities issued by
Trust IV shall be required in order for such supplemental indenture to be
effective.”

1.4           Amendment to Section 1007 of the Indenture.  Section 1007 is amended to add the following
at the end thereof:

“For purposes of this
Section 1007, if the Debentures are held by Trust IV, the consent of not less
than a majority of the aggregate liquidation amount of the securities issued by
Trust IV shall be required in order to waive a covenant.”

1.5           Amendment to Section 513 of the Indenture.  Section 513 is amended to add the following
at the end thereof:

“For purposes of this
Section 513, if the Debentures are held by Trust IV, the consent of not less
than a majority of the aggregate liquidation amount of the securities issued by
Trust IV shall be required in order to waive such default.”

1.6           Amendment to Article Ten of the Indenture.  Article Ten of the Indenture is amended to
add the following covenant at the end of such Article:

“SECTION 1010.  Trust
Covenants.

The Company shall, for so
long as Trust IV is in existence:  (i)
maintain directly or indirectly 100% ownership of the common securities of
Trust IV, (ii) cause Trust IV to remain a statutory trust and not to be
voluntarily dissolved, wound-up, liquidated or terminated, except as provided
for in the Declaration, (iii) use its commercially reasonable efforts to assure
that Trust IV will not be an “investment company” for purposes of the
Investment Company Act of 1940, (iv) take no action that would be reasonably
likely to cause Trust IV to be classified as an 

 

 

3

 

association or a publicly
traded partnership taxable as a corporation for United States federal income
tax purposes, and (v) agree  to pay all
debts and obligations (other than with respect to the securities issued by
Trust IV) and all costs and expenses of Trust IV (including, but not limited
to, all costs and expenses relating to the organization of Trust IV, the fees
and expenses of the trustees and all costs and expenses relating to the
operation of Trust IV ) and to pay any and all taxes, duties, assessments or
governmental charges of whatever nature (other than withholding taxes) imposed
on Trust IV by the United States, or any other taxing authority, so that the
net amounts received and retained by Trust IV after paying such expenses will
be equal to the amounts Trust IV would have received had no such costs or
expenses been incurred by or imposed on the Trust IV.  The foregoing obligations of the Company are for the benefit of,
and shall be enforceable by, any Person to whom any such debts, obligations,
costs, expenses and taxes are owed (each, a “Creditor”) whether or not such
Creditor has received notice thereof. 
Any such Creditor may enforce such obligations of the Company directly
against the Company, and the Company irrevocable waives any right or remedy to
require that any such Creditor take any action against Trust IV or any other
Person before proceeding against the Company.

SECTION 2.  
MISCELLANEOUS

2.1           Debentures. 
Attached hereto as Exhibit A is a form of the Subordinated Debenture.

2.2           Separability. 
In case any provision in this Fifth Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

2.3           Continuance of Indenture.  This Fifth Supplemental Indenture supplements the Indenture and
shall be a part of and subject to all the terms thereof.  The Indenture, as supplemented by this Fifth
Supplemental Indenture, shall continue in full force and effect.

2.4           The Trustee. 
The Trustee shall not be responsible in any manner for or in respect of
the validity or sufficiency of this Fifth Supplemental Indenture, or for or in
respect of the recitals contained herein, all of which recitals are made by the
Company solely.

2.5           Governing Law. 
This Fifth Supplemental Indenture shall be governed by and construed in
accordance with the laws of the State of New York.

2.6           Defined Terms. 
All capitalized terms used in this Fifth Supplemental Indenture which
are defined in the Indenture, but not otherwise defined herein, shall have the
same meanings assigned to them in the Indenture.

2.7           Counterparts. 
This Fifth Supplemental Indenture 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.

 

 

4

 

JPMorgan Chase Bank hereby
accepts the trusts in this Fifth Supplemental Indenture declared and provided,
upon the terms and conditions hereinabove set forth.

 

 

5

 

IN WITNESS WHEREOF, Lehman
Brothers Holdings Inc. has caused this Fifth Supplemental Indenture to be
signed and acknowledged by its President, its Chairman of the Board, one of its
Vice Presidents, its Chief Executive Officer or its Treasurer, and JPMorgan
Chase Bank, as Trustee, has caused this Fifth Supplemental Indenture to be
signed and acknowledged by one its authorized officers, and its corporate seal
to be affixed hereunto, and the same to be attested by one of its authorized
officers, as of the day and year first above written.

 

	
  LEHMAN BROTHERS HOLDINGS
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:
  Barrett S. DiPaolo

  
	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  

 

 

 

	
  JPMORGAN CHASE BANK, as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Authorized Officer

  

 

 

 

6

 

EXHIBIT A

No. D-__                                                                           $__________

 

 

 

LEHMAN
BROTHERS HOLDINGS INC.

6.375% SUBORDINATED DEFERRABLE INTEREST DEBENTURE DUE OCTOBER 2052

Lehman Brothers Holdings Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein referred to as the “Company”),
for value received, hereby promises to pay to JPMORGAN CHASE BANK, as Property
Trustee (the “Property Trustee”) for LEHMAN BROTHERS HOLDINGS CAPITAL TRUST IV
(the “Trust”), at the office or agency of the Company in the Borough of
Manhattan, the City of New York, the principal sum of _______ dollars on
October 31, 2052, in such coin or currency of the United States of America as
at the time of payment shall be legal tender for the payment of public and
private debts, and to pay interest on said principal sum at said office or
agency, in like coin or currency, at the rate per annum specified in the title
of this Debenture until the principal hereof becomes due and payable, and on any
overdue principal and (to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at the
same rate per annum during the period in which such principal is overdue,
compounded quarterly, to the registered holder of this Debenture, until payment
of said principal sum has been made or duly provided for.  Interest on this Debenture, (computed as set
forth herein) shall be payable quarterly (subject to deferral as set forth
herein) in arrears on January 31, April 30, July 31 and October 31 of each year
(each an “Interest Payment Date”), commencing January 31, 2004, from the date
of this Debenture or the most recent Interest Payment Date to which interest
has been paid or duly provided for, unless the date hereof is a date to which
interest has been paid or duly provided for.

 

The interest so payable on any Interest Payment Date will, subject to
certain exceptions provided in the Indenture referred to on the reverse hereof,
be paid to the person in whose name this Debenture (or one or more Predecessor
Securities, as defined in said Indenture) is registered at the close of
business on the Business Day prior to the relevant Interest Payment Date (each
a “Regular Record Date”).  Interest may,
at the option of the Company, be paid by check mailed to the person entitled
thereto at such person’s address as it appears in the registry books of the
Company.

 

REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS DEBENTURE SET FORTH
ON THE REVERSE HEREOF.  SUCH FURTHER
PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET
FORTH AT THIS PLACE.

 

 

This Debenture shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed by the
Trustee under the Indenture referred to on the reverse hereof.

 

2

 

IN WITNESS WHEREOF, LEHMAN BROTHERS HOLDINGS INC. has caused this
instrument to be signed by its Chairman of the Board, its Vice Chairman, its
President, its Chief Financial Officer, one of its Vice Presidents or its
Treasurer by manual or facsimile signature, attested by its Secretary or one of
its Assistant Secretaries by manual or facsimile signature.

 

 

	
  LEHMAN
  BROTHERS HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
   

  
	
   

  	
  Name:
  Barrett S. DiPaolo

  
	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  

 

 

 

	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
  Name:

  	
  Cindy
  Gregoire

  
	
  Title:

  	
  Assistant
  Secretary

  

 

3

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.

 

Dated
_______ __, 200_,

 

	
  JPMORGAN
  CHASE BANK,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
  By:
  

  	
   

  
	
   

  	
  Authorized
  Officer

  

 

4

 

 

(Reverse of Debenture)

 

LEHMAN
BROTHERS HOLDINGS INC.

6.375% SUBORDINATED DEFERRABLE INTEREST DEBENTURE DUE OCTOBER 2052

This Debenture is one of a duly authorized series of Debentures of the
Company designated as the 6.375% Subordinated Deferrable Interest Debentures
due October 2052 of the Company (herein called the “Debentures”).  The Debentures are one of an indefinite
number of series of debt securities of the Company (herein collectively called
the “Securities”), issued or issuable under and pursuant to an indenture, dated
as of February 1, 1996, as amended and supplemented (herein called the
“Indenture”), between the Company and JPMorgan Chase Bank, formerly known as
The Chase Manhattan Bank and prior thereto as Chemical Bank, as Trustee (herein
called the “Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the holders of the Debentures. 
The separate series of Securities may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at
different rates, may be subject to different redemption provisions or repayment
or repurchase rights (if any), may be subject to different sinking, purchase or
analogous funds (if any), may be subject to different covenants and Events of
Default, as defined in the Indenture, and may otherwise vary as provided in the
Indenture.

 

Payment of the principal of and interest on this Debenture is, to the
extent provided in the Indenture, subordinated and subject in right of payment
to the prior payment in full when due of the principal of (and premium, if any)
and interest, if any, on all Senior Debt, as defined in the Indenture, of the
Company and this Debenture is issued subject to the provisions of the Indenture
with respect thereto.  Each registered
holder of this Debenture, by accepting the same, (a) agrees to and shall be
bound by such provisions, (b) authorizes and expressly directs the Trustee on
his or her behalf to take such action as may be necessary or appropriate to
effectuate the subordination so provided and (c) appoints the Trustee as his or
her attorney-in-fact for any and all such purposes.  Each registered holder hereof, by his or her acceptance hereof,
hereby waives all notice of the acceptance of the subordination provisions
contained herein and in the Indenture by each holder of Senior Debt, whether
now outstanding or hereafter incurred, and waives reliance by each such holder
upon said provisions.  Each registered
holder thereof, by his or her acceptance hereof, agrees to treat the Debentures
as indebtedness for all United States federal income tax purposes.

 

Subject to Article Eleven of the Indenture, at any time on or after
October 31, 2008 and prior to maturity, the Company shall have the right to
redeem this Debenture at the option of the Company, in whole or in part, at
100% of the principal amount of such Debentures, plus any accrued but unpaid
interest, to the Redemption Date.

 

If an Investment Company Event (as defined in the Amended and Restated
Declaration of Trust of the Trust, dated October 31, 2003 among the Company, as
Sponsor, the Trust, and the trustees of the Trust named thereto (the
“Declaration”) shall occur and be continuing, the 

 

 

 

Company
may, at any time within 90 days following the occurrence of such Investment
Company Event, redeem the Debentures, in whole but not in part, at a Redemption
Price equal to 100% of the principal amount thereof, plus accrued and unpaid
interest thereon to the Redemption Date. 
Subject to certain conditions described in the Indenture, in the event
of the occurrence and continuation of a Tax Event (as defined in the
Declaration), in certain circumstances the Company may redeem the Debentures,
in whole but not in part, at any time within 90 days following the occurrence
of a Tax Event at a Redemption Price equal to 100% of the aggregate principal
amount thereof, plus accrued and unpaid interest thereon to the Redemption Date.  Any redemption pursuant to this paragraph
shall be made upon not less than 30 nor more than 60 days’ notice to the
Trustee and Holders of the Debentures. 
If less than all the Debentures are to be redeemed by the Company, the
Debentures to be redeemed will be selected by lot or by such other method as
the Trustee shall deem fair and appropriate. 
The Debentures are not subject to a sinking fund.

 

In the event of redemption of this Debenture in part only, a new
Debenture or Debentures of this series for the unredeemed portion hereof will
be issued in the name of the registered holder hereof upon the surrender hereof
at a Place of Payment (as defined in the Indenture).

 

In case an Event of Default with respect to the Debentures shall have
occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.  The omission by the Company to pay interest during an Extension
Period (as defined below) as permitted hereby shall not constitute an Event of
Default under Section 501 of the Indenture. 
An “Event of Default” means any of those events set forth in Section 501
of the Indenture, and the event that, when the Property Trustee is the Holder
of the Debentures, the Trust shall have voluntarily or involuntarily dissolved,
wound–up its business or otherwise terminated its existence except in
connection with the (i) distribution of Debentures to holders of Preferred
Securities and Common Securities in liquidation of their interests in the
Trust, (ii) the redemption of all of the outstanding Preferred Securities and
Common Securities, or (iii) certain mergers, consolidations or amalgamation,
each as permitted by the Declaration.

 

If the Debentures are held by the Trust, the Company, as borrower,
hereby covenants to pay all debts and obligations (other than with respect to
the Preferred Securities and Common Securities of the Trust) and all costs and
expenses of the Trust (including, but not limited to, all costs and expenses
relating to the organization of the Trust, the fees and expenses of the
trustees of the Trust and all costs and expenses relating to the operation of
the Trust) and to pay any and all taxes, duties, assessments or governmental
charges of whatever nature (other than United States withholding taxes) imposed
on the Trust by the United States, or any other taxing authority, so that the
net amounts received and retained by the Trust and the Property Trustee after paying
such debts, obligations, costs, expenses, taxes, duties, assessments, or other
governmental charges, will be equal to the amounts the Trust and the Property
Trustee would have received had no such debts, obligations, costs, expenses,
taxes, duties, assessments, or other governmental charges been incurred by or
imposed on the Trust.  The foregoing
obligations of the Company are for the benefit of, and shall be enforceable by,
any person to whom any such debts, obligations, costs, expenses and taxes are owed
(each, a “Creditor”) whether or not such Creditor has received notice
thereof.  Any such Creditor may enforce
such obligations of the 

 

 

2

 

Company
directly against the Company, and the Company irrevocably waives any right or
remedy to require that any such Creditor take any action against the Trust or
any other person before proceeding against the Company.  The Company shall execute such additional
agreements as may be necessary or desirable to give full effect to the
foregoing.

 

The Company hereby covenants that, so long as any Preferred Securities
and Common Securities of the Trust remain outstanding, if (i) there shall have
occurred any Event of Default under the Indenture with respect to the Debentures,
(ii) the Company shall be in default with respect to its payment of any
obligations under its Guarantee (as defined in the Declaration) with respect to
the Trust or (iii) the Company shall have given notice of its election of an
Extension Period as provided herein and shall not have rescinded such notice,
or such Extension Period or any extension thereof shall be continuing, then the
Company will not, and will not permit any Subsidiary to, (x) declare or pay any
dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Company’s capital stock or (y)
make any payment of principal, interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Company that rank on a parity
with or junior in interest to this Debenture or make any guarantee payments
with respect to any guarantee by the Company of the debt securities of any
Subsidiary of the Company if such guarantee ranks on a parity with or junior in
interest to this Debenture (other than (a) dividends or distributions in common
stock of the Company, (b) payments under the Guarantee made by the Company in
respect of the Preferred Securities and Common Securities of the Trust, (c) any
declaration of a dividend in connection with the implementation of a
shareholders’ rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto,
and (d) purchases of common stock related to the issuance of common stock or
rights under any of the Company’s benefit plans).

 

The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than 66-2/3% in aggregate
principal amount of each series of the Securities at the time Outstanding to be
affected (each series voting as a class), evidenced as provided in the
Indenture, to execute supplemental indentures adding any provisions to, or
changing in any manner or eliminating any of the provisions of the Indenture or
of any supplemental indenture or modifying in any manner the rights of the
holders of the Securities of all such series; provided,
however, that no such supplemental indenture shall, among other
things, (i) change the fixed maturity of any Security, or reduce the principal
amount thereof, or reduce the rate or extend the time of payment of interest
thereon or reduce any premium payable on redemption, or make the principal
thereof, or premium, if any, or interest thereon payable in any coin or
currency other than that hereinabove provided, or amend the Indenture to modify
its provisions relating to the subordination of each Security in a manner
adverse to the holder thereof, without the consent of the holder of each
Security so affected, or (ii) change the place of payment on any Security, or
impair the right to institute suit for payment on any Security, or reduce the
aforesaid percentage of Securities, the holders of which are required to
consent to any such supplemental indenture, without the consent of the holders
of each Security so affected.  It is
also provided in the Indenture that, prior to any declaration accelerating the
maturity of any series of Securities, the holders of a majority in aggregate
principal amount of the Securities of such series Outstanding may on behalf of
the holders of all the Securities of such series waive any past default or
Event of Default under the Indenture with respect to such series and its 

 

3

 

consequences,
except a default in the payment of interest, if any, on or the principal of, or
premium, if any, on any of the Securities of such series.  Any such consent or waiver by the holder of
this Debenture shall be conclusive and binding upon such holder and upon all
future holders and owners of this Debenture and any Debentures which may be
issued in exchange or substitution herefor, irrespective of whether or not any
notation thereof is made upon this Debenture or such other Debentures.

 

No reference herein to the Indenture and no provisions of this
Debenture or of the Indenture shall alter or impair the obligations of the
Company, which is absolute and unconditional, to pay the principal of this
Debenture at the place, at the time and in the coin or currency herein
prescribed.

 

The amount of interest payable for any period will be computed (i) for
any full 90-day quarterly interest payment period, on the basis of a 360-day
year of twelve 30-day months, (ii) for any period shorter than a full 90-day
quarterly interest payment period for which interest payments are computed, on
the basis of a 30-day month and (iii) for periods of less than a month, the
actual number of days elapsed per 30-day month.  In the event that any date on which interest is payable on this
Debenture is not a Business Day (as defined in the Indenture), then payment of
the amount payable on such date will be made on the next succeeding day which
is a Business Day (and without any interest or other payment in respect of any
such delay) except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business
Day, in each case with the same force and effect as if made on the original
Interest Payment Date, subject to certain rights of deferral described below.

 

The Company shall have the right at any time, on one or more occasions,
so long as an Event of Default has not occurred and is not continuing under the
Indenture, to extend any interest payment period on this Debenture for a period
(an “Extension Period”) not to exceed twenty consecutive quarterly interest
payment periods; provided that the date on which such Extension Period ends
must be on an Interest Payment Date and must be no later than March 15, 2052 or
any date on which any Debentures are fixed for redemption, and, as a
consequence, the quarterly interest payment on the Debentures would be deferred
(but would continue to accrue with interest thereon compounded quarterly at the
rate of interest on the Debentures, except to the extent payment of such
interest is prohibited by law) during any such Extension Period.  On the Interest Payment Date at the end of
each Extension Period, the Company shall pay all interest then accrued and
unpaid (compounded quarterly, at the rate of interest on the Debentures, except
to the extent payment of such interest is prohibited by law) to the date of
payment, to the persons in whose name the Debentures are registered on the
Regular Record Date immediately preceding the Interest Payment Date at the end
of such Extension Period.  The Company
shall give written notice to the Regular Trustees (as defined in the
Declaration), the Property Trustee and the Trustee of its election of such
Extension Period one Business Day before the earlier of (i) the next
succeeding date on which distributions on the Preferred Securities of the Trust
are payable or (ii) the date the Trust is required to give notice of the record
date or the date such distributions are payable to the New York Stock Exchange
or other applicable self–regulatory organization or to holders of the
Preferred Securities issued by the Trust, but in any event at least one
Business Day before such record date. 
During any Extension Period, the Company may continue to extend the
interest payment period by extending the Extension Period, on one or more
occasions 

 

4

 

by
giving notice as aforesaid; provided that such Extension Period, as extended,
must end on an Interest Payment Date and in no event shall the aggregate Extension
Period, as extended, exceed twenty consecutive quarterly interest payment
periods or extend beyond March 15, 2052 or any date on which any of the
Debentures are fixed for redemption.  No
interest shall be due and payable on the Debentures during an Extension Period
except at the end thereof.

 

                Notwithstanding
the provisions of Section 401(a)(B) of the Indenture, the Company may satisfy
and discharge the entire indebtedness on all the Debentures as provided therein
only when the Debentures are by their terms due and payable within one year.

 

The Debentures are issuable in registered form without coupons in
denominations of $25 and any multiple of $25. 
At the option of the holders thereof, either at the office or agency to
be designated and maintained by the Company for such purpose in the Borough of
Manhattan, The City of New York, pursuant to the provisions of the Indenture or
at any of such other offices or agencies as may be designated and maintained by
the Company for such purpose pursuant to the provisions of the Indenture, and
in the manner and subject to the limitations provided in the Indenture, but
without the payment of any service charge, except for any tax or other
governmental charges imposed in connection therewith, Debentures may be exchanged
for an equal aggregate principal amount of Debentures of like tenor and of
other authorized denominations.

 

The Company, the Trustee, and any agent of the Company or of the
Trustee may deem and treat the registered holder hereof as the absolute owner
of this Debenture (whether or not this Debenture shall be overdue and
notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment hereof, or on account hereof, and for all other
purposes, and neither the Company nor the Trustee nor any agent of the Company
or of the Trustee shall be affected by any notice to the contrary.  All such payments made to or upon the order
of such registered holder shall, to the extent of the sum or sums paid,
effectually satisfy and discharge liability for moneys payable on this
Debenture.

 

No recourse for the payment of the principal of or the interest on this
Debenture, or for any claim based hereon or otherwise in respect hereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
the Indenture or any indenture supplemental thereto or in any Debenture, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director as such, past,
present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issue hereof, expressly waived
and released.

 

As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Debenture is registrable in the Security
Register, upon surrender of this Debenture for registration of transfer at the
office or agency of the Company in any place where the principal of this
Debenture is payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly

 

5

 

executed
by, the holder hereof or such holder’s attorney duly authorized in writing, and
thereupon one or more new Debentures of this series of like tenor and of
authorized denominations and for the same aggregate principal amount will be
issued to the designated transferee or transferees.

 

The Indenture and the Debentures shall be governed by
and construed in accordance with the laws of the State of New York.

 

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

 

6

 

 

The following abbreviations, when used in the inscription on the face
of the within Debenture, shall be construed as though they were written out in
full according to applicable laws or regulations:

TEN COM - as tenants in common

TEN ENT - as tenants by their entireties

JT TEN - as joint tenants with right of survivorship and not as tenants
in common

 

UNIF GIFT MIN ACT - ___________ Custodian __________ under Uniform
Gifts to

       (Cut)                      (Minor)

                                              Minors
Act__________________

(State)

 

 

Additional abbreviations may also be used though not in the above list.

 

 

 

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

 

(Please insert social security or other identifying number of Assignee)

 

(Name and address of Assignee, including zip code, must be printed or
typewritten.)

 

the
within Debenture, and all rights thereunder, hereby irrevocably constituting
and appointing

 

___________________________________________________________________________________________

__________________________________________________________________________________
to transfer the said Debenture on the books of the Company, with full power of
substitution in the premises.

 

Date:_____________

 

Signature:_______________________________________

NOTICE: The signature to this assignment must correspond with the name
as it appears upon the face of the within Debenture in every particular,
without alteration or enlargement or any change whatever.

 

 

Signature(s)
Guaranteed:_____________________________

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
UNIONS WITH MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE PROGRAM),
PURSUANT TO S.E.C. RULE 17Ad-15.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]