Document:

Amended and Restated Trust Agreement, dated as of June 25, 2007

 Exhibit 4.2 
 AMENDED AND RESTATED TRUST AGREEMENT 
 among 
 ALESCO FINANCIAL INC., 
 as Depositor 
 WELLS FARGO BANK, N.A., 
 as Property
Trustee 
 WELLS FARGO DELAWARE TRUST COMPANY, 
 as Delaware Trustee 
 and 
 THE ADMINISTRATIVE TRUSTEES NAMED HEREIN 
 as Administrative Trustees 
  

 Dated as of June 25, 2007

  

 ALESCO CAPITAL
TRUST I 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINED TERMS
	  	1
			
	 Section 1.1.
	  	Definitions.	  	1
		
	 ARTICLE II THE TRUST
	  	12
			
	 Section 2.1.
	  	Name.	  	12
			
	 Section 2.2.
	  	Office of the Delaware Trustee; Office of the Trust.	  	13
			
	 Section 2.3.
	  	Initial Contribution of Trust Property; Fees, Costs and Expenses.	  	13
			
	 Section 2.4.
	  	Purposes of Trust.	  	13
			
	 Section 2.5.
	  	Authorization to Enter into Certain Transactions.	  	14
			
	 Section 2.6.
	  	Assets of Trust.	  	16
			
	 Section 2.7.
	  	Title to Trust Property.	  	17
		
	 ARTICLE III PAYMENT ACCOUNT; PAYING AGENTS
	  	17
			
	 Section 3.1.
	  	Payment Account.	  	17
			
	 Section 3.2.
	  	Appointment of Paying Agents.	  	17
		
	 ARTICLE IV DISTRIBUTIONS; REDEMPTION
	  	18
			
	 Section 4.1.
	  	Distributions.	  	18
			
	 Section 4.2.
	  	Redemption.	  	19
			
	 Section 4.3.
	  	Subordination of Common Securities.	  	22
			
	 Section 4.4.
	  	Payment Procedures.	  	22
			
	 Section 4.5.
	  	Withholding Tax.	  	23
			
	 Section 4.6.
	  	Tax Returns and Other Reports.	  	23
			
	 Section 4.7.
	  	Payment of Taxes, Duties, Etc. of the Trust.	  	23
			
	 Section 4.8.
	  	Payments under Indenture or Pursuant to Direct Actions.	  	24
			
	 Section 4.9.
	  	Exchanges.	  	24
			
	 Section 4.10.
	  	Calculation Agent.	  	24
			
	 Section 4.11.
	  	Certain Accounting Matters.	  	25
		
	 ARTICLE V SECURITIES
	  	26
			
	 Section 5.1.
	  	Initial Ownership.	  	26
			
	 Section 5.2.
	  	Authorized Trust Securities.	  	26
			
	 Section 5.3.
	  	Issuance of the Common Securities; Subscription and Purchase of Notes.	  	26

					
	 	  	 	  	Page
			
	 Section 5.4.
	  	The Securities Certificates.	  	27
			
	 Section 5.5.
	  	Rights of Holders.	  	28
			
	 Section 5.6.
	  	Book-Entry Preferred Securities.	  	28
			
	 Section 5.7.
	  	Registration of Transfer and Exchange of Preferred Securities Certificates.	  	30
			
	 Section 5.8.
	  	Mutilated, Destroyed, Lost or Stolen Securities Certificates.	  	31
			
	 Section 5.9.
	  	Persons Deemed Holders.	  	32
			
	 Section 5.10.
	  	Cancellation.	  	32
			
	 Section 5.11.
	  	Ownership of Common Securities by Depositor.	  	33
			
	 Section 5.12.
	  	Restrictive Legends.	  	33
			
	 Section 5.13.
	  	Form of Certificate of Authentication.	  	35
		
	 ARTICLE VI MEETINGS; VOTING; ACTS OF HOLDERS
	  	36
			
	 Section 6.1.
	  	Notice of Meetings.	  	36
			
	 Section 6.2.
	  	Meetings of Holders of the Preferred Securities.	  	36
			
	 Section 6.3.
	  	Voting Rights.	  	36
			
	 Section 6.4.
	  	Proxies, Etc.	  	37
			
	 Section 6.5.
	  	Holder Action by Written Consent.	  	37
			
	 Section 6.6.
	  	Record Date for Voting and Other Purposes.	  	37
			
	 Section 6.7.
	  	Acts of Holders.	  	37
			
	 Section 6.8.
	  	Inspection of Records.	  	38
			
	 Section 6.9.
	  	Limitations on Voting Rights.	  	38
			
	 Section 6.10.
	  	Acceleration of Maturity; Rescission of Annulment; Waivers of Past Defaults.	  	39
		
	 ARTICLE VII REPRESENTATIONS AND WARRANTIES
	  	41
			
	 Section 7.1.
	  	Representations and Warranties of the Property Trustee and the Delaware Trustee.	  	41
			
	 Section 7.2.
	  	Representations and Warranties of Depositor.	  	43
		
	 ARTICLE VIII THE TRUSTEES
	  	44
			
	 Section 8.1.
	  	Number of Trustees.	  	44
			
	 Section 8.2.
	  	Property Trustee Required.	  	44
			
	 Section 8.3.
	  	Delaware Trustee Required.	  	44
			
	 Section 8.4.
	  	Appointment of Administrative Trustees.	  	45
			
	 Section 8.5.
	  	Duties and Responsibilities of the Trustees.	  	45

  

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	 	  	 	  	Page
			
	 Section 8.6.
	  	Notices of Defaults and Extensions.	  	47
			
	 Section 8.7.
	  	Certain Rights of Property Trustee.	  	47
			
	 Section 8.8.
	  	Delegation of Power.	  	50
			
	 Section 8.9.
	  	May Hold Securities.	  	50
			
	 Section 8.10.
	  	Compensation; Reimbursement; Indemnity.	  	50
			
	 Section 8.11.
	  	Resignation and Removal; Appointment of Successor.	  	51
			
	 Section 8.12.
	  	Acceptance of Appointment by Successor.	  	52
			
	 Section 8.13.
	  	Merger, Conversion, Consolidation or Succession to Business.	  	53
			
	 Section 8.14.
	  	Not Responsible for Recitals or Issuance of Securities.	  	53
			
	 Section 8.15.
	  	Property Trustee May File Proofs of Claim.	  	53
			
	 Section 8.16.
	  	Reports to the Property Trustee.	  	54
		
	ARTICLE IX TERMINATION, LIQUIDATION AND MERGER	  	55
			
	 Section 9.1.
	  	Dissolution Upon Expiration Date.	  	55
			
	 Section 9.2.
	  	Early Termination.	  	55
			
	 Section 9.3.
	  	Termination.	  	56
			
	 Section 9.4.
	  	Liquidation.	  	56
			
	 Section 9.5.
	  	Mergers, Consolidations, Amalgamations or Replacements of Trust.	  	57
		
	ARTICLE X MISCELLANEOUS PROVISIONS	  	59
			
	 Section 10.1.
	  	Limitation of Rights of Holders.	  	59
			
	 Section 10.2.
	  	Agreed Tax Treatment of Trust and Trust Securities.	  	59
			
	 Section 10.3.
	  	Amendment.	  	59
			
	 Section 10.4.
	  	Separability.	  	61
			
	 Section 10.5.
	  	Governing Law.	  	61
			
	 Section 10.6.
	  	Successors.	  	62
			
	 Section 10.7.
	  	Headings.	  	62
			
	 Section 10.8.
	  	Reports, Notices and Demands.	  	62
			
	 Section 10.9.
	  	Agreement Not to Petition.	  	63
			
	 Section 10.10.
	  	Counterparts.	  	63

  

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 EXHIBITS AND SCHEDULE 
  

			
	Exhibit A	  	Certificate of Trust of Alesco Capital Trust I
	Exhibit B	  	Form of Common Securities Certificate
	Exhibit C	  	Form of Preferred Securities Certificate
	Exhibit D	  	Junior Subordinated Indenture
	Exhibit E	  	Form of Transferee Certificate to be executed by Transferees other than QIBs
	Exhibit F	  	Form of Officers’ Certificate Pursuant to Section 8.16(a)
	Exhibit G	  	Form of Officer’s Financial Certificate of the Depositor

 Schedule A Determination of LIBOR 
  

 iv 

 AMENDED AND RESTATED TRUST AGREEMENT 
 This AMENDED AND RESTATED TRUST AGREEMENT, dated as of June 25, 2007 (this “Trust Agreement”), among (i) Alesco Financial
Inc., a Maryland corporation (including any successors or permitted assigns, the “Depositor”), (ii) Wells Fargo Bank, N.A., a national banking association, as property trustee (in such capacity, the “Property
Trustee”), (iii) Wells Fargo Delaware Trust Company, a limited purpose trust company, as Delaware trustee (in such capacity, the “Delaware Trustee”), and (iv) John Longino, an individual, and Christian Carr, an
individual, each of whose address is c/o Alesco Financial Inc., 2929 Arch Street, 17th floor, Philadelphia, PA 19104, as administrative trustees (in such capacities, each an “Administrative Trustee” and, collectively, the
“Administrative Trustees” and, together with the Property Trustee and the Delaware Trustee, the “Trustees”). 
 WITNESSETH: 
 WHEREAS, the Depositor and the Delaware Trustee have heretofore created a Delaware statutory trust pursuant to the
Delaware Statutory Trust Act by entering into a Trust Agreement, dated as of June 21, 2007 (the “Original Trust Agreement”), and by executing and filing with the Secretary of State of the State of Delaware the Certificate of
Trust, substantially in the form attached hereto as Exhibit A (the “Certificate of Trust”); and 
 WHEREAS, the
Depositor and the Trustees desire to amend and restate the Original Trust Agreement in its entirety as set forth herein to provide for, among other things, (i) the issuance and sale of the Common Securities by the Trust to the Depositor,
(ii) the issuance and sale of the Preferred Securities by the Trust pursuant to the Purchase Agreement and (iii) the acquisition by the Trust from the Depositor of all of the right, title and interest in and to the Notes; 
 NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each party, for the benefit of the other parties and for the benefit of the Holders, hereby amends and restates the Original Trust Agreement in its entirety and agrees as follows: 
 ARTICLE I 
 DEFINED TERMS 
 Section 1.1. Definitions. 
 For
all purposes of this Trust Agreement, except as otherwise expressly provided or unless the context otherwise requires: 
 (a)
the terms defined in this Article I have the meanings assigned to them in this Article I; 
 (b) the words
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; 

 (c) all accounting terms used but not defined herein have the meanings assigned to them
in accordance with United States generally accepted accounting principles; 
 (d) unless the context otherwise requires, any
reference to an “Article”, a “Section”, a “Schedule” or an “Exhibit” refers to an Article, a Section, a Schedule or an Exhibit, as the case may be, of or to this Trust Agreement; 
 (e) the words “hereby,” “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Trust Agreement as a whole and not to any particular Article, Section or other subdivision; 
 (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. 
 “Act” when used with respect to any Holder, has the meaning specified
in Section 6.7. 
 “Additional Interest” has the meaning specified in Section 1.1 of the Indenture.

 “Additional Interest Amount” means, with respect to Trust Securities of a given Liquidation Amount and/or a given period,
the amount of Additional Interest paid by the Depositor on a Like Amount of Notes for such period. 
 “Additional Tax Sums”
has the meaning specified in Section 10.5 of the Indenture. 
 “Additional Taxes” has the meaning specified in
Section 1.1 of the Indenture. 
 “Administrative Trustee” means each of the Persons identified as an
“Administrative Trustee” in the preamble to this Trust Agreement, solely in each such Person’s capacity as Administrative Trustee of the Trust and not in such Person’s individual capacity, or any successor Administrative
Trustee appointed as herein provided. 
 “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. 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. 
 “Applicable Depositary Procedures” means, with respect to any transfer or transaction involving a
Book-Entry Preferred Security, the rules and procedures of the Depositary for such Book-Entry Preferred Security, in each case to the extent applicable to such transaction and as in effect from time to time. 
 “Bankruptcy Event” means, with respect to any Person: 
  

 2 

 (a) the entry of a decree or order by a court having jurisdiction in the premises (i) judging such
Person a bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of such Person under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law, (iii) appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of such Person or of any substantial part of its property or (iv) ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of sixty (60) consecutive days; or 
 (b) the institution by such Person of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a
petition or answer or consent seeking reorganization or relief under any applicable Bankruptcy Law, or the consent by it to the filing of any such petition or to the appointment of a custodian, receiver, liquidator, assignee, trustee, sequestrator
or similar official of such Person or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due and
its willingness to be adjudicated a bankrupt or insolvent, or the taking of corporate action by such Person in furtherance of any such action. 
 “Bankruptcy Laws” means all federal and state bankruptcy, insolvency, reorganization and other similar laws, including the United States Bankruptcy Code. 
 “Book-Entry Preferred Security” means a Preferred Security, the ownership and transfers of which shall be made through book entries by a
Depositary. 
 “Breakage Costs” means any and all reasonable costs and fees of any holder of Preferred Securities
(including, without limitation, the reasonable fees and expenses of any counsel engaged by such holder to enforce the obligations of the Company hereunder) (as reasonably determined by such holder), directly associated or incurred in connection with
unwinding, terminating, modifying or otherwise breaking of any interest rate swap or other interest rate hedging arrangement entered into with respect to the interest rate on the Preferred Securities prior to the expiration of the Fixed Rate Period
where such unwinding, termination, modification or breaking is caused by the payment of principal on the Notes prior to the expiration of the Fixed Rate Period. The determination by a holder of Preferred Securities of the amount of any such costs
and fees shall be described and confirmed by such holder to the Company and set forth in a written notice from the holder to the Company; such determination shall be conclusive absent manifest error. 
 “Breakage Gains” means the amount of gain actually realized by any holder of Preferred Securities (as reasonably determined by such
holder), directly associated or incurred in connection with unwinding, terminating, modifying or otherwise breaking any interest rate swap or other interest rate hedging arrangement entered into with respect to the interest rate on the 

  

 3 

 
Preferred Securities prior to the expiration of the Fixed Rate Period where such unwinding, termination, modification or breaking is caused by the payment of
principal on the Notes prior to the expiration of the Fixed Rate Period. 
 “Business Day” means a day other than (a) a
Saturday or Sunday, (b) a day on which banking institutions in the City of New York are authorized or required by law or executive order to remain closed or (c) a day on which the Corporate Trust Office is closed for business. 

“Calculation Agent” has the meaning specified in Section 4.10. 
 “Certificate of Trust” has the meaning specified in the recitals to this Trust Agreement. 
 “Change of Control Election” has the meaning specified in the Indenture. 
 “Closing Date” has the meaning specified in the Purchase Agreement. 
 “Code” means the United States Internal Revenue Code of 1986 or any successor statute thereto, in each case as amended from time to
time. 
 “Commission” means the Securities and Exchange Commission. 
 “Common Securities Certificate” means a certificate evidencing ownership of Common Securities, substantially in the form attached hereto
as Exhibit B. 
 “Common Securities Subscription Agreement” means the agreement of even date herewith by and between
the Depositor and the Trust pertaining to the sale and purchase of the Common Securities. 
 “Common Security” means a
common security of the Trust, denominated as such and representing an undivided common beneficial interest in the assets of the Trust, having a Liquidation Amount of $1,000 and having the rights provided therefor in this Trust Agreement. 

“Corporate Trust Office” means the principal office of the Property Trustee at which any particular time its corporate trust business
shall be administered, which office at the date of this Trust Agreement is located at 919 North Market Street, Suite 1600, Wilmington, Delaware 19801, Attention: Corporate Trust Department – Alesco Capital Trust I. 
 “Definitive Preferred Securities Certificates” means Preferred Securities issued in certificated, fully registered form that are not
Global Preferred Securities. 
 “Delaware Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del.
Code § 3801 et seq., or any successor statute thereto, in each case as amended from time to time. 
 “Delaware
Trustee” means the Person identified as the “Delaware Trustee” in the preamble to this Trust Agreement, solely in its capacity as Delaware Trustee of the Trust and not in its individual capacity, or its successor in interest in
such capacity, or any successor Delaware Trustee appointed as herein provided. 
  

 4 

 “Depositary” means an organization registered as a clearing agency under the Exchange
Act that is designated as Depositary by the Depositor or any successor thereto. DTC will be the initial Depositary. 
 “Depositary
Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time the Depositary effects book-entry transfers and pledges of securities deposited with the Depositary. 
 “Depositor” has the meaning specified in the preamble to this Trust Agreement and any successors and permitted assigns. 
 “Depositor Affiliate” has the meaning specified in Section 4.9(a). 
 “Distribution Date” has the meaning specified in Section 4.1(a)(i). 
 “Distributions” means amounts payable in respect of the Trust Securities as provided in Section 4.1. 
 “DTC” means The Depository Trust Company, a New York corporation, or any successor thereto. 
 “Early Termination Event” has the meaning specified in Section 9.2. 
 “EDGAR” has the meaning specified in Section 4.11(c). 
 “Equity Interests” means (a) the partnership interests (both common and preferred partnership interests) in a partnership (general
or limited), (b) the membership interests in a limited liability company (both common and preferred membership interests) and (c) the shares or stock interest (both common stock and preferred stock) in a corporation. 
 “ERISA” means the Employee Retirement Income Security Act of 1974 or any successor statute thereto, in each case as amended from time to
time. 
 “Event of Default” means any one of the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 
 (a) the occurrence of a Note Event of Default; or 
 (b) default by the Trust in the payment of any Distribution when it becomes due and payable, and continuation of such default for a period of thirty (30) days; or 
 (c) default by the Trust in the payment of any Redemption Price of any Trust Security when it becomes due and payable; or 
  

 5 

 (d) default in the performance, or breach, in any material respect of any covenant or warranty of the
Trustees in this Trust Agreement (other than those specified in clause (b) or (c) above) and continuation of such default or breach for a period of thirty (30) days after there has been given, by registered or certified mail, to the
Trustees and to the Depositor by the Holders of at least twenty-five percent (25%) in aggregate Liquidation Amount of the Outstanding Preferred Securities a written notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder (a “Notice of Default”); or 
 (e) the occurrence of a
Bankruptcy Event with respect to the Property Trustee if a successor Property Trustee has not been appointed within ninety (90) days thereof. 
 “Exchange Act” means the Securities Exchange Act of 1934 or any successor statute thereto, in each case as amended from time to time. 
 “Expiration Date” has the meaning specified in Section 9.1. 
 “Fiscal
Year” shall be the fiscal year of the Trust, which shall be the calendar year, or such other period as is required by the Code. 
 “Fixed Rate Period” shall mean the period through the interest payment date in July 30, 2012. 
 “Global Preferred Security” means a Preferred Securities Certificate evidencing ownership of Book-Entry Preferred Securities. 
 “Holder” means a Person in whose name a Trust Security or Trust Securities are registered in the Securities Register; any such Person shall be deemed to be a “beneficial owner” within the
meaning of the Delaware Statutory Trust Act. 
 “Indemnified Person” has the meaning specified in
Section 8.10(c). 
 “Indenture” means the Junior Subordinated Indenture executed and delivered by the Depositor
and the Note Trustee contemporaneously with the execution and delivery of this Trust Agreement, for the benefit of the holders of the Notes, a copy of which is attached hereto as Exhibit D, or as it may from time to time be amended or
supplemented by one or more amendments or indentures supplemental thereto entered into pursuant to the applicable provisions thereof. 
 “Indenture Redemption Price” means the Optional Note Redemption Price, the Mandatory Redemption Price or the Special Note Redemption Price, as applicable. 
 “Interest Payment Date” has the meaning specified in Section 1.1 of the Indenture. 
  

 6 

 “Investment Company Act” means the Investment Company Act of 1940 or any successor
statute thereto, in each case as amended from time to time. 
 “Investment Company Event” has the meaning specified in
Section 1.1 of the Indenture. 
 “Junior Subordinated Note Purchase Agreement” means the agreement of even date
herewith by and between the Depositor and the Trust pertaining to the issuance and purchase of the Notes. 
 “LIBOR” has the
meaning specified in Schedule A. 
 “LIBOR Business Day” has the meaning specified in Schedule A. 

“LIBOR Determination Date” has the meaning specified in Schedule A. 
 “Lien” means any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse ownership interest, hypothecation, assignment,
security interest or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever. 
 “Like Amount” means (a) with respect to a redemption of any Trust Securities, Trust Securities having a Liquidation Amount equal to the aggregate principal amount of Notes to be contemporaneously redeemed or paid at
maturity in accordance with the Indenture, the proceeds of which will be used to pay the Redemption Price of such Trust Securities, (b) with respect to a distribution of Notes to Holders of Trust Securities in connection with a dissolution of
the Trust, Notes having an aggregate principal amount equal to the Liquidation Amount of the Trust Securities of the Holder to whom such Notes are distributed and (c) with respect to any distribution of Additional Interest Amounts to Holders of
Trust Securities, Notes having an aggregate principal amount equal to the Liquidation Amount of the Trust Securities in respect of which such distribution is made. 
 “Liquidation Amount” means the stated liquidation amount of $1,000 per Trust Security. 
 “Liquidation Date” means the date on which assets are to be distributed to Holders in accordance with Section 9.4(a) hereunder following dissolution of the Trust. 
 “Liquidation Distribution” has the meaning specified in Section 9.4(d). 
 “Mandatory Note Redemption Price” means, with respect to any Note to be redeemed on the Redemption Date for a mandatory
redemption under the Indenture, an amount equal to one hundred percent (100%) of the outstanding principal amount of such Note, together with accrued and unpaid interest, including any Additional Interest (to the extent legally enforceable)
thereon, to but excluding the date fixed as such Redemption Date and, if such redemption shall occur prior to the expiration of the Fixed Rate Period, Breakage Costs, if any, less Breakage Gains, if any. 
 “Mandatory Redemption Price” means, with respect to any Trust Security, an amount equal to one hundred percent (100%) of the
Liquidation Amount of such Trust Security on the Redemption Date, plus accumulated and unpaid Distribution to but excluding the Redemption 

  

 7 

 
Date, plus related amount of premium, if any, and/or accrued and unpaid interest, including Additional Interest, if any, thereon and, if the redemption shall
occur prior to the expiration of the Fixed Rate Period, Breakage Costs, if any, less Breakage Gains, if any. 
 “Majority in
Liquidation Amount” means Common or Preferred Securities, as the case may be, representing more than fifty percent (50%) of the aggregate Liquidation Amount of all (or a specified group of) then Outstanding Common or Preferred
Securities, as the case may be. 
 “Note Event of Default” means any “Event of Default” specified in
Section 5.1 of the Indenture. 
 “Note Redemption Date” means, with respect to any Notes to be redeemed under the
Indenture, the date fixed for redemption of such Notes under the Indenture. 
 “Note Trustee” means the Person identified as
the “Trustee” in the Indenture, solely in its capacity as Trustee pursuant to the Indenture and not in its individual capacity, or its successor in interest in such capacity, or any successor Trustee appointed as provided in the Indenture.

 “Notes” means the Depositor’s Junior Subordinated Notes issued pursuant to the Indenture. 
 “Notice of Default” has the meaning specified in clause (d) of the definition of Event of Default in this Section 1.1.

 “Officers’ Certificate” means a certificate signed by the Chief Executive Officer, the Chief Financial Officer, the
President or an Executive Vice President, and by the Chief Accounting Officer, Treasurer or an Assistant Treasurer, of the Depositor, and delivered to the Trustees. Any Officers’ Certificate delivered with respect to compliance with a condition
or covenant provided for in this Trust Agreement (other than the certificate provided pursuant to Section 8.16(b) which is not an Officers’ Certificate) shall include: 
 (a) a statement by each officer signing the Officers’ Certificate that such officer has read the condition or covenant and the definitions herein
relating thereto; 
 (b) a brief statement of the nature and scope of the examination or investigation undertaken by such officer in rendering
the Officers’ Certificate; 
 (c) a statement that such 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 condition or covenant has been complied with; and 
 (d) a statement as to whether, in the opinion of such officer, such condition or covenant has been complied with. 
  

 8 

 “Operative Documents” means the Purchase Agreement, the Indenture, this Trust Agreement,
the Notes, the Common Securities Subscription Agreement, the Junior Subordinated Note Purchase Agreement and the Trust Securities. 
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel for, or an employee of, the Depositor or any Affiliate of the Depositor. 
 “Optional Note Redemption Price” means, with respect to any Note to be redeemed on any Redemption Date for an optional redemption under
the Indenture, an amount equal to one hundred percent (100%) of the outstanding principal amount of such Note (or the redeemed portion thereof, as applicable), together with accrued and unpaid interest, including any Additional Interest (to the
extent legally enforceable), thereon to but excluding the date fixed as such Redemption Date and, if the redemption shall occur prior to the expiration of the Fixed Rate Period, Breakage Costs, if any, less Breakage Gains, if any. 
 “Optional Redemption Price” means, with respect to any Trust Security, an amount equal to one hundred percent (100%) of the
Liquidation Amount of such Trust Security on the Redemption Date, plus accumulated and unpaid Distributions through but excluding the Redemption Date, plus the related amount of the premium, if any, and/or accrued and unpaid interest, including
Additional Interest, if any, thereon paid by the Depositor upon the concurrent redemption or payment at maturity of a Like Amount of Notes and, if the redemption shall occur prior to the expiration of the Fixed Rate Period, Breakage Costs, if any,
less Breakage Gains, if any. 
 “Original Issue Date” means the date of original issuance of the Trust Securities.

 “Original Trust Agreement” has the meaning specified in the recitals to this Trust Agreement. 
 “Outstanding” means, when used in reference to any Trust Securities, as of the date of determination, all Trust Securities theretofore
executed and delivered under this Trust Agreement, except: 
 (a) Trust Securities theretofore canceled by the Property Trustee or delivered
to the Property Trustee for cancellation; 
 (b) Trust Securities for which payment or redemption money in the necessary amount has been
theretofore deposited with the Property Trustee or any Paying Agent (other than the Depositor) in trust or set aside and segregated in trust by the Depositor (if the Depositor and/or its Affiliate shall act as its own Paying Agent) for the Holders
of such Trust Securities; provided, that if the Depositor is acting as Paying Agent, Trust Securities for which payment or redemption money has been so deposited in trust with the Paying Agent shall be considered to remain Outstanding until
such time as such payment or redemption money has actually been paid in full to the Holders of such Trust Securities; and provided; further, that, if such Trust Securities are to be redeemed, notice of such redemption 

  

 9 

 
has been duly given pursuant to this Trust Agreement or provision therefor satisfactory to the Property Trustee has been made; and 
 (c) Trust Securities that have been paid or in substitution for or in lieu of which other Trust Securities have been executed and delivered pursuant to
the provisions of this Trust Agreement, unless proof satisfactory to the Property Trustee is presented that any such Trust Securities are held by Holders in whose hands such Trust Securities are valid, binding and legal obligations of the Trust;

 provided, that in determining whether the Holders of the requisite Liquidation Amount of the Outstanding Preferred Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, Preferred Securities owned by the Depositor, any Trustee or any Affiliate of the Depositor or of any Trustee shall be disregarded and deemed not to be Outstanding,
except that (i) in determining whether any Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Preferred Securities that such Trustee knows to be so owned shall be so
disregarded and (ii) the foregoing shall not apply at any time when all of the Outstanding Preferred Securities are owned by the Depositor, one or more of the Trustees and/or any such Affiliate. Preferred Securities so owned that have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Administrative Trustees the pledgee’s right so to act with respect to such Preferred Securities and that the pledgee is not the
Depositor, any Trustee or any Affiliate of the Depositor or of any Trustee. 
 “Owner” means each Person who is the
beneficial owner of Book-Entry Preferred Securities as reflected in the records of the Depositary or, if a Depositary Participant is not the beneficial owner, then the beneficial owner as reflected in the records of the Depositary Participant.

 “Paying Agent” means any Person authorized by the Administrative Trustees to pay Distributions or other amounts in
respect of any Trust Securities on behalf of the Trust. 
 “Payment Account” means a segregated non-interest-bearing
corporate trust account maintained by the Property Trustee for the benefit of the Holders in which all amounts paid in respect of the Notes will be held and from which the Property Trustee, through the Paying Agent, shall make payments to the
Holders in accordance with Sections 3.1, 4.1 and 4.2. 
 “Person” means a legal person, including any
individual, corporation, estate, partnership (general or limited), joint venture, association, joint stock company, company, limited liability company, trust, unincorporated association or government, or any agency or political subdivision thereof,
or any other entity of whatever nature. 
 “Preferred Securities Certificate” means a certificate evidencing ownership of
Preferred Securities, substantially in the form attached as Exhibit C. 
 “Preferred Security” means a preferred
security of the Trust, denominated as such and representing an undivided preferred beneficial interest in the assets of the Trust, having a Liquidation Amount of $1,000 and having the rights provided therefor in this Trust Agreement. 
  

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 “Property Trustee” means the Person identified as the “Property Trustee” in
the preamble to this Trust Agreement, solely in its capacity as Property Trustee of the Trust and not in its individual capacity, or its successor in interest in such capacity, or any successor Property Trustee appointed as herein provided.

 “Purchase Agreement” means the Preferred Securities Purchase Agreement executed and delivered by the Trust, the Depositor
and Kodiak Warehouse JPM LLC, as purchaser, contemporaneously with the execution and delivery of this Trust Agreement, as amended from time to time. 
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A under the Securities Act. 
 “QIB/QP” means a QIB that is also a QP. 
 “QP” means a “qualified
purchaser” as defined in Section 2(a)(51) of the Investment Company Act of 1940. 
 “Redemption Date” means, with
respect to any Trust Security to be redeemed, the date fixed for such redemption by or pursuant to this Trust Agreement; provided, that each Note Redemption Date and the stated maturity (or any date of principal repayment upon early maturity)
of the Notes shall be a Redemption Date for a Like Amount of Trust Securities. 
 “Redemption Price” means the Special
Redemption Price, Mandatory Redemption Price or Optional Redemption Price, as applicable. If the Depositor has redeemed the Notes at the Special Note Redemption Price, the Trust shall redeem the Trust Securities at the Special Redemption Price. If
the Depositor has redeemed the Notes at the Optional Note Redemption Price, the Trust shall redeem the Trust Securities at the Optional Redemption Price. If the Depositor has redeemed the Notes at the Mandatory Note Redemption Price, the Trust shall
redeem the Trust Securities at the Mandatory Redemption Price. 
 “Reference Banks” has the meaning specified in Schedule
A. 
 “Responsible Officer” means, with respect to the Property Trustee, the officer in the Corporate Trust Department
of the Property Trustee having direct responsibility for the administration of this Trust Agreement. 
 “Securities Act”
means the Securities Act of 1933 or any successor statute thereto, in each case as amended from time to time. 
 “Securities
Certificate” means any one of the Common Securities Certificates or the Preferred Securities Certificates. 
 “Securities
Register” and “Securities Registrar” have the respective meanings specified in Section 5.7(a). 
 “Special Note Redemption Price” means, with respect to any Note to be redeemed on any Redemption Date under the Indenture, an amount equal to one hundred seven and one-half 

  

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percent (107.5%) of the outstanding principal amount of such Note, together with accrued interest, including Additional Interest, thereon to but
excluding the date fixed as such Redemption Date. 
 “Special Redemption Price” means, with respect to any Trust Security,
an amount equal to one hundred seven and one-half percent (107.5%) of the Liquidation Amount of such Trust Security on the Redemption Date, plus accumulated and unpaid Distributions through but excluding the Redemption Date, plus the related
amount of the premium, if any, and/or accrued interest, including Additional Interest, if any, thereon paid by the Depositor upon the concurrent redemption or payment at maturity of a Like Amount of Notes. 
 “Successor Securities” has the meaning specified in Section 9.5(a). 
 “Tax Event” has the meaning specified in Section 1.1 of the Indenture. 
 “Trust” means the Delaware statutory trust known as “Alesco Capital Trust I,” which was created on June 21, 2007 under
the Delaware Statutory Trust Act pursuant to the Original Trust Agreement and the filing of the Certificate of Trust, and continued pursuant to this Trust Agreement. 
 “Trust Agreement” means this Amended and Restated Trust Agreement, as the same may be modified, amended or supplemented from time to time in accordance with the applicable provisions hereof, including
the Schedule and Exhibits attached hereto (other than Exhibit D). 
 “Trust Indenture Act” means the Trust Indenture
Act of 1939 or any successor statute thereto, in each case as amended from time to time. 
 “Trustees” means the
Administrative Trustees, the Property Trustee and the Delaware Trustee, each as defined in this Article I. 
 “Trust
Property” means (a) the Notes, (b) any cash on deposit in, or owing to, the Payment Account and (c) all proceeds and rights in respect of the foregoing and any other property and assets for the time being held or deemed to be
held by the Property Trustee pursuant to the trusts of this Trust Agreement. 
 “Trust Security” means any one of the Common
Securities or the Preferred Securities. 
 ARTICLE II 
 THE TRUST 
 Section 2.1. Name. 
 The trust continued hereby shall be known as “Alesco Capital Trust I”, as such name may be modified from time to time by the Administrative
Trustees following written notice to the Holders of Trust Securities and the other Trustees, in which name the Trustees may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be
sued. 
  

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 Section 2.2. Office of the Delaware Trustee; Office of the Trust. 
 The address of the Delaware Trustee in the State of Delaware is Wells Fargo Delaware Trust Company,
919 North Market Street, Suite 1600, Wilmington, Delaware 19801, Attention: Corporate Trust Department – Alesco Capital Trust I, or such other address in the State of Delaware as the Delaware Trustee may designate by written notice to the
Holders, the Depositor, the Property Trustee and the Administrative Trustees. The principal office of the Trust is c/o Alesco Financial Inc., 2929 Arch Street, 17th floor, Philadelphia, PA 19104, Attention: John Longino, as such address may be changed from time to time by the Administrative Trustees following written notice to the Holders and the other Trustees.

 Section 2.3. Initial Contribution of Trust Property; Fees, Costs and Expenses. 
 The Property Trustee acknowledges receipt from the Depositor in connection with the Original Trust Agreement of the sum of ten dollars ($10), which
constituted the initial Trust Property. The Depositor shall pay all fees, costs and expenses of the Trust (except with respect to the Trust Securities) as they arise or shall, upon request of any Trustee, promptly reimburse such Trustee for any such
fees, costs and expenses paid by such Trustee. The Depositor shall make no claim upon the Trust Property for the payment of such fees, costs or expenses. 
 Section 2.4. Purposes of Trust. 
 (a) The exclusive purposes and functions of the Trust are to
(i) issue and sell Trust Securities and use the proceeds from such sale to acquire the Notes, (ii) make distributions as provided herein, (iii) enter into and perform its obligations under agreements, documents and instructions
(including, without limitation, the Operative Documents to which it is a party) necessary to accomplish (i) and (ii), and (iv) engage in only those activities necessary or incidental thereto. The Delaware Trustee, the Property Trustee and
the Administrative Trustees are trustees of the Trust, and have all the rights, powers and duties to the extent set forth herein. The Trustees hereby acknowledge that they are trustees of the Trust. 
 (b) So long as this Trust Agreement remains in effect, the Trust (or the Trustees acting on behalf of the Trust) shall not undertake any business,
activities or transaction except as expressly provided herein or contemplated hereby. In particular, the Trust (or the Trustees acting on behalf of the Trust) shall not (i) acquire any investments or engage in any activities not authorized by
this Trust Agreement, (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose of any of the Trust Property or interests therein, including to Holders, except as expressly provided herein, (iii) incur any
indebtedness for borrowed money or issue any other debt, (iv) take or consent to any action that would result in the placement of a Lien on any of the Trust Property, (v) take or consent to any action that would reasonably be expected to
cause the Trust to become taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes, (vi) take or consent to any action that would cause the Notes to be treated as other than indebtedness
of the Depositor for United States federal income tax purposes or (vii) take or consent to any action that would cause the Trust to be deemed to be an “investment company” required to be registered under the Investment Company Act.

  

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 Section 2.5. Authorization to Enter into Certain Transactions. 
 (a) The Trustees shall conduct the affairs of the Trust in accordance with and subject to the terms of this Trust Agreement. In accordance with the
following provisions (i) and (ii), the Trustees shall have the authority to enter into all transactions and agreements determined by the Trustees to be appropriate in exercising the authority, express or implied, otherwise granted to the
Trustees under this Trust Agreement, and to perform all acts in furtherance thereof, including the following: 
 (i) As among
the Trustees, each Administrative Trustee shall severally have the power and authority to act on behalf of the Trust with respect to the following matters: 
 (A) the issuance and sale of the Trust Securities; 
 (B) to cause the Trust to enter into,
and to execute, deliver and perform on behalf of the Trust, such agreements, documents, instruments, certificates and other writings as may be necessary or desirable in connection with the purposes and function of the Trust, including, without
limitation, the Common Securities Subscription Agreement and the Junior Subordinated Note Purchase Agreement and to cause the Trust to perform its obligations under the Purchase Agreement executed by the Depositor on behalf of the Trust; 

(C) assisting in the sale of the Preferred Securities in one or more transactions exempt from registration under the Securities Act,
and in compliance with this Trust Agreement and applicable state securities or blue sky laws; 
 (D) assisting in the sending
of notices (other than notices of default) and other information regarding the Trust Securities and the Notes to the Holders in accordance with this Trust Agreement; 
 (E) the appointment of a successor Paying Agent and Calculation Agent in accordance with this Trust Agreement; 
 (F) execution of the Trust Securities on behalf of the Trust in accordance with this Trust Agreement; 
 (G) execution and delivery of closing certificates, if any, pursuant to the Purchase Agreement and application for a taxpayer
identification number for the Trust; 
 (H) preparation and filing of all applicable tax returns and tax information reports
that are required to be filed on behalf of the Trust; 
 (I) establishing a record date with respect to all actions to be
taken hereunder that require a record date to be established, except as provided in Section 6.10(a); 
  

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 (J) unless otherwise required by the Delaware Statutory Trust Act, to execute on behalf
of the Trust (either acting alone or together with the other Administrative Trustees) any documents and other writings that such Administrative Trustee has the power to execute pursuant to this Trust Agreement; 
 (K) the taking of any action incidental to the foregoing as such Administrative Trustee may from time to time determine is necessary or
advisable to give effect to the terms of this Trust Agreement; and 
 (L) to cause the Trust, during any period in which it is
not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, or it is not exempt from such reporting requirements pursuant to and in compliance with Rule 12g3-2(b) under the Exchange Act, to provide to each holder of the Trust
Securities and to each prospective purchaser (as designated by such holder) of the Trust Securities, upon the request of such holder or prospective purchaser, any information required to be provided by Rule 144A(d)(4) under the Securities Act, if
applicable. 
 (ii) As among the Trustees, the Property Trustee shall have the power, duty and authority to act on behalf of
the Trust with respect to the following matters: 
 (A) the receipt and holding of legal title of the Notes; 
 (B) the establishment of the Payment Account; 
 (C) the collection of interest, principal and any other payments made in respect of the Notes and the holding of such amounts in the
Payment Account; 
 (D) the distribution through the Paying Agent of amounts distributable to the Holders in respect of the
Trust Securities; 
 (E) the exercise of all of the rights, powers and privileges of a holder of the Notes in accordance with
the terms of this Trust Agreement; 
 (F) the sending of notices of default and other information regarding the Trust
Securities and the Notes to the Holders in accordance with this Trust Agreement; 
 (G) the distribution of the Trust Property
in accordance with the terms of this Trust Agreement; 
 (H) to the extent provided in this Trust Agreement, the winding up of
the affairs of and liquidation of the Trust, provided that the Administrative Trustees shall have the power, duty and authority to act on behalf of the Trust with respect to the preparation, execution and filing of the certificate of cancellation of
the Trust with the Secretary of State of the State of Delaware; 
  

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 (I) the authentication of the Preferred Securities as provided in this Trust Agreement;
and 
 (J) the taking of any action incidental to the foregoing as the Property Trustee may from time to time determine is
necessary or advisable to give effect to the terms of this Trust Agreement and protect and conserve the Trust Property for the benefit of the Holders (without consideration of the effect of any such action on any particular Holder). 
 (b) In connection with the issue and sale of the Preferred Securities, the Depositor shall have the right and responsibility to assist the Trust with
respect to, or effect on behalf of the Trust, the following (and any actions taken by the Depositor in furtherance of the following prior to the date of this Trust Agreement are hereby ratified and confirmed in all respects): 
 (i) the negotiation of the terms of, and the execution and delivery of, the Purchase Agreement providing for the sale of the Preferred
Securities in one or more transactions exempt from registration under the Securities Act, and in compliance with this Trust Agreement and applicable state securities or blue sky laws; and 
 (ii) the taking of any other actions necessary or desirable to carry out any of the foregoing activities. 
 (c) Notwithstanding anything herein to the contrary, the Administrative Trustees are authorized and directed to conduct the affairs of the Trust and
authorized to operate the Trust so that the Trust will not be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes, so that the Notes will be treated as indebtedness of the Depositor for
United States federal income tax purposes and so that the Trust will not be deemed to be an “investment company” required to be registered under the Investment Company Act. In respect thereof, each Administrative Trustee is authorized to
take any action, not inconsistent with applicable law, the Certificate of Trust or this Trust Agreement, that such Administrative Trustee determines in his or her discretion to be necessary or desirable for such purposes, as long as such action does
not adversely affect in any material respect the interests of the Holders of the Outstanding Preferred Securities. In no event shall the Administrative Trustees be liable to the Trust or the Holders for any failure to comply with this
Section 2.5 to the extent that such failure results solely from a change in law or regulation or in the interpretation thereof. 
 (d) Any action taken by a Trustee in accordance with his, her or its powers shall constitute the act of and serve to bind the Trust. In dealing with any Trustee acting on behalf of the Trust, no Person shall be required to inquire into the
authority of such Trustee to bind the Trust. Persons dealing with the Trust are entitled to rely conclusively on the power and authority of any Trustee as set forth in this Trust Agreement. 
 Section 2.6. Assets of Trust. 
 The assets of the Trust shall consist of the Trust Property. 
  

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 Section 2.7. Title to Trust Property. 
 (a) Legal title to all Trust Property shall be vested at all times in the Property Trustee and shall be held and administered by the Property Trustee in
trust for the benefit of the Trust and the Holders in accordance with this Trust Agreement. 
 (b) The Holders shall not have any right or
title to the Trust Property other than the undivided beneficial interest in the assets of the Trust conferred by their Trust Securities and they shall have no right to call for any partition or division of property, profits or rights of the Trust
except as described below. The Trust Securities shall be personal property giving only the rights specifically set forth therein and in this Trust Agreement. 
 ARTICLE III 
 PAYMENT ACCOUNT; PAYING AGENTS 
 Section 3.1. Payment Account. 
 (a) On or prior to the Closing Date, the Property Trustee shall establish the Payment Account. The Property Trustee and the Paying Agent shall have exclusive control and sole right of withdrawal with respect to the Payment Account for the
purpose of making deposits in and withdrawals from the Payment Account in accordance with this Trust Agreement. All monies and other property deposited or held from time to time in the Payment Account shall be held by the Property Trustee in the
Payment Account for the exclusive benefit of the Holders and for Distribution as herein provided. 
 (b) The Property Trustee shall deposit
in the Payment Account, promptly upon receipt, all payments of principal of, premium, if any, or interest on, and any other payments with respect to, the Notes. Amounts held in the Payment Account shall not be invested by the Property Trustee
pending distribution thereof. 
 Section 3.2. Appointment of Paying Agents. 
 The Property Trustee is hereby appointed as the initial Paying Agent and the Property Trustee hereby accepts such appointment. The Paying Agent shall make
Distributions to Holders from the Payment Account and shall report the amounts of such Distributions to the Property Trustee and the Administrative Trustees. Any Paying Agent shall have the revocable power to withdraw funds from the Payment Account
solely for the purpose of making the Distributions referred to above. The Administrative Trustees may revoke such power and remove the Paying Agent in their sole discretion. Any Person acting as Paying Agent shall be permitted to resign as Paying
Agent upon thirty (30) days’ written notice to the Administrative Trustees and the Property Trustee. If the Property Trustee shall no longer be the Paying Agent or a successor Paying Agent shall resign or its authority to act be revoked,
the Administrative Trustees shall appoint a successor (which shall be a bank or trust company) to act as Paying Agent. Such successor Paying Agent appointed by the Administrative Trustees shall execute and deliver to the Trustees an instrument in
which such successor Paying Agent shall agree with the Trustees that as Paying Agent, such successor Paying Agent will hold all sums, if any, held by it for payment to the Holders in trust for the benefit of the Holders entitled thereto until such
sums 

  

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shall be paid to such Holders. The Paying Agent shall return all unclaimed funds to the Property Trustee and upon removal of a Paying Agent such Paying Agent
shall also return all funds in its possession to the Property Trustee. The provisions of Article VIII shall apply to the Property Trustee also in its role as Paying Agent, for so long as the Property Trustee shall act as Paying Agent and, to
the extent applicable, to any other Paying Agent appointed hereunder. Any reference in this Trust Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise. 
 ARTICLE IV 
 DISTRIBUTIONS; REDEMPTION

 Section 4.1. Distributions. 
 (a) The Trust Securities represent undivided beneficial interests in the Trust Property, and Distributions (including any Additional Interest Amounts) will be made on the Trust Securities at the rate and on the dates
that payments of interest (including any Additional Interest) are made on the Notes. Accordingly: 
 (i) Distributions on the
Trust Securities shall be cumulative, and shall accumulate whether or not there are funds of the Trust available for the payment of Distributions. Distributions shall accumulate from June 25, 2007, and, except as provided in clause
(ii) below, shall be payable quarterly in arrears on January 30, April 30, July 30 and October 30 of each year, commencing on July 30, 2007. If any date on which a Distribution is otherwise payable on the
Trust Securities is not a Business Day, then the payment of such Distribution shall be made on the next succeeding Business Day (and no interest shall accrue in respect of the amounts whose payment is so delayed for the period from and after each
such date until the next succeeding Business Day), except that, if such Business Day falls 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 such date (each date on which Distributions are payable in accordance with this Section 4.1(a)(i), a “Distribution Date”); 
 (ii) Distributions shall accumulate in respect of the Trust Securities at a fixed rate equal to 9.495% per annum of the Liquidation
Amount to but excluding the interest payment date in July 30, 2012 and thereafter at a variable rate equal to LIBOR plus 4% per annum of the Liquidation Amount of the Trust Securities, such rate being the rate of interest payable on the
Notes. LIBOR shall be determined by the Calculation Agent in accordance with Schedule A attached hereto. During the Fixed Rate Period, the amount of Distributions payable for any Distribution period shall be computed on the basis of a three
hundred sixty (360)-day year of twelve (12) thirty (30)-day months and the amount payable for any partial period shall be computed on the basis of the actual number of days elapsed in a three hundred sixty (360)-day year of twelve
(12) thirty (30)-day months. Upon expiration of the Fixed Rate Period, the amount of Distributions payable for any Distribution period shall be computed on the basis of a three hundred sixty (360)-day year and the actual number of days elapsed
in the relevant Distribution period. The 

  

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amount of Distributions payable for any period shall include any Additional Interest Amounts in respect of such period; and 
 (iii) Distributions on the Trust Securities shall be made by the Paying Agent from the Payment Account and shall be payable on each
Distribution Date only to the extent that the Trust has funds then on hand and available in the Payment Account for the payment of such Distributions. 
 (b) Distributions on the Trust Securities with respect to a Distribution Date shall be payable to the Holders thereof as they appear on the Securities Register for the Trust Securities at the close of business on the
relevant record date, which shall be at the close of business on the fifteenth (15th) day (whether or not a Business Day) preceding the relevant Distribution Date, except that Distributions and any Additional Interest Amounts payable on the
stated maturity (or any date of principal repayment upon early maturity) of the principal of a Trust Security or on a Redemption Date shall be paid to the Person to whom principal is paid. Distributions payable on any Trust Securities that are not
punctually paid on any Distribution Date as a result of the Depositor having failed to make an interest payment under the Notes will cease to be payable to the Person in whose name such Trust Securities are registered on the relevant record date,
and such defaulted Distributions and any Additional Interest Amounts will instead be payable to the Person in whose name such Trust Securities are registered on the special record date, or other specified date for determining Holders entitled to
such defaulted Distribution and Additional Interest Amount, established in the same manner, and on the same date, as such is established with respect to the Notes under the Indenture. 
 (c) As a condition to the payment of any principal of or interest on the Trust Securities without the imposition of withholding tax, the Administrative
Trustees shall require the previous delivery of properly completed and signed applicable U.S. federal income tax certifications (generally, an Internal Revenue Service Form W-9 (or applicable successor form) in the case of a person that is a
“United States person” within the meaning of Section 7701(a)(30) of the Code or an Internal Revenue Service Form W-8 (or applicable successor form) in the case of a person that is not a “United States person” within the
meaning of Section 7701(a)(30) of the Code) and any other certification acceptable to it to enable the Paying Agent to determine its duties and liabilities with respect to any taxes or other charges that it may be required to pay, deduct or
withhold in respect of such Trust Securities. 
 Section 4.2. Redemption. 
 (a) On each Note Redemption Date and on the stated maturity (or any date of principal repayment upon early maturity) of the Notes and on each other date
on (or in respect of) which any principal on the Notes is repaid, the Trust will be required to redeem a Like Amount of Trust Securities at the Redemption Price. 
 (b) Notice of redemption shall be given by the Property Trustee by first-class mail, postage prepaid, mailed not less than thirty (30) nor more than sixty (60) days prior to the Redemption Date to each
Holder of Trust Securities to be redeemed, at such Holder’s address appearing in the Securities Register. All notices of redemption shall state: 
  

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 (i) the Redemption Date; 
 (ii) the Redemption Price or, if the Redemption Price cannot be calculated prior to the time the notice is required to be sent, the
estimate of the Redemption Price provided pursuant to the Indenture, as calculated by the Depositor, together with a statement that it is an estimate and that the actual Redemption Price will be calculated by the Calculation Agent on the fifth
(5th) Business Day prior to the Redemption Date (and if an estimate is provided, a further notice shall be sent of the actual Redemption Price on the date that such Redemption Price is calculated); 
 (iii) if less than all the Outstanding Trust Securities are to be redeemed, the identification (and, in the case of partial redemption,
the respective amounts) and Liquidation Amounts of the particular Trust Securities to be redeemed; 
 (iv) that on the
Redemption Date, the Redemption Price will become due and payable upon each such Trust Security, or portion thereof, to be redeemed and that Distributions thereon will cease to accumulate on such Trust Security or such portion, as the case may be,
on and after said date, except as provided in Section 4.2(d); 
 (v) the place or places where the Trust
Securities are to be surrendered for the payment of the Redemption Price; and 
 (vi) such other provisions as the Property
Trustee deems relevant. 
 (c) The Trust Securities (or portion thereof) redeemed on each Redemption Date shall be redeemed at the Redemption
Price with the proceeds from the contemporaneous redemption or payment at maturity of Notes. Redemptions of the Trust Securities (or portion thereof) shall be made and the Redemption Price shall be payable on each Redemption Date only to the extent
that the Trust has funds then on hand and available in the Payment Account for the payment of such Redemption Price. Under the Indenture, the Notes may be redeemed by the Depositor on any Interest Payment Date, at the Depositor’s option, on or
after July 30, 2012, in whole at any time or in part from time to time, at the Optional Note Redemption Price. The Notes may also be redeemed by the Depositor, at its option pursuant to the terms of the Indenture, in whole but not in part, upon
the occurrence and during the continuation of an Investment Company Event or a Tax Event, at the Special Note Redemption Price. In addition, the Electing Securities (as defined in the Indenture) must be redeemed pursuant to the terms of the
Indenture in whole at the Mandatory Note Redemption Price, upon receipt of a Change of Control Election. 
 (d) If the Property Trustee gives
a notice of redemption in respect of any Preferred Securities, then by 10:00 A.M., New York City time, on the Redemption Date, the Depositor shall deposit sufficient funds with the Property Trustee to pay the Redemption Price. If such deposit has
been made by such time, then by 12:00 noon, New York City time, on the Redemption Date, the Property Trustee will, with respect to Book-Entry Preferred Securities, irrevocably deposit with the Depositary for such Book-Entry Preferred Securities, to
the extent available therefor, funds sufficient to pay the applicable Redemption Price and will give such Depositary irrevocable instructions and authority to pay the Redemption Price to the Holders of the Preferred Securities. With respect to
Preferred Securities that are not Book-Entry Preferred 

  

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Securities, the Property Trustee will irrevocably deposit with the Paying Agent, to the extent available therefor, funds sufficient to pay the applicable
Redemption Price and will give the Paying Agent irrevocable instructions and authority to pay the Redemption Price to the Holders of the Preferred Securities upon surrender of their Preferred Securities Certificates. Notwithstanding the foregoing,
Distributions payable on or prior to the Redemption Date for any Trust Securities (or portion thereof) called for redemption shall be payable to the Holders of such Trust Securities as they appear on the Securities Register on the relevant record
dates for the related Distribution Dates. If notice of redemption shall have been given and funds deposited as required, then upon the date of such deposit, all rights of Holders holding Trust Securities (or portion thereof) so called for redemption
will cease, except the right of such Holders to receive the Redemption Price and any Distribution payable in respect of the Trust Securities on or prior to the Redemption Date, but without interest, and, in the case of a partial redemption, the
right of such Holders to receive a new Trust Security or Securities of authorized denominations, in aggregate Liquidation Amount equal to the unredeemed portion of such Trust Security or Securities, and such Trust Securities (or portion thereof)
called for redemption will cease to be Outstanding. In the event that any date on which any Redemption Price is payable is not a Business Day, then payment of the Redemption Price payable on such date will be made on the next succeeding Business Day
(and no interest shall accrue in respect of the amounts whose payment is so delayed for the period from and after each such date until the next succeeding Business Day), except that, if such Business Day falls 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 such date. In the event that payment of the Redemption Price in respect of any Trust Securities (or portion thereof)
called for redemption is improperly withheld or refused and not paid either by the Trust or by the Depositor, Distributions on such Trust Securities (or portion thereof) will continue to accumulate, as set forth in Section 4.1, from the
Redemption Date originally established by the Trust for such Trust Securities (or portion thereof) to the date such Redemption Price is actually paid, in which case the actual payment date will be the date fixed for redemption for purposes of
calculating the Redemption Price. 
 (e) Subject to Section 4.3(a), if less than all the Outstanding Trust Securities are to be
redeemed on a Redemption Date, then the aggregate Liquidation Amount of Trust Securities to be redeemed shall be allocated pro rata to the Common Securities and the Preferred Securities based upon the relative aggregate Liquidation Amounts of
the Common Securities and the Preferred Securities. The Preferred Securities to be redeemed shall be selected on a pro rata basis based upon their respective Liquidation Amounts not more than sixty (60) days prior to the Redemption Date
by the Property Trustee from the Outstanding Preferred Securities not previously called for redemption; provided, that with respect to Holders that would be required to hold less than one hundred (100) but more than zero (0) Trust
Securities as a result of such redemption, the Trust shall redeem Trust Securities of each such Holder so that after such redemption such Holder shall hold either one hundred (100) Trust Securities or such Holder no longer holds any Trust
Securities, and shall use such method (including, without limitation, by lot) as the Trust shall deem fair and appropriate; and provided, further, that so long as the Preferred Securities are Book-Entry Preferred Securities,
such selection shall be made in accordance with the Applicable Depositary Procedures for the Preferred Securities held by such Depositary. The Property Trustee shall promptly notify the Securities Registrar in writing of the Preferred Securities (or
portion thereof) selected for redemption and, in the case of any Preferred Securities selected for partial redemption, the Liquidation Amount thereof to be redeemed. For 

  

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all purposes of this Trust Agreement, unless the context otherwise requires, all provisions relating to the redemption of Preferred Securities shall relate,
in the case of any Preferred Securities redeemed or to be redeemed only in part, to the portion of the aggregate Liquidation Amount of Preferred Securities that has been or is to be redeemed. 
 (f) The Trust in issuing the Trust Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Property Trustee shall
indicate the “CUSIP” numbers of the Trust Securities in notices of redemption and related materials as a convenience to Holders; provided, that any such notice may state that no representation is made as to the correctness of such
numbers either as printed on the Trust Securities or as contained in any notice of redemption and related materials. 
 Section 4.3.
Subordination of Common Securities. 
 (a) Payment of Distributions (including any Additional Interest Amounts) on, the Redemption
Price of and the Liquidation Distribution in respect of, the Trust Securities, as applicable, shall be made, pro rata among the Common Securities and the Preferred Securities based on the Liquidation Amount of the respective Trust Securities;
provided, that if on any Distribution Date, Redemption Date or Liquidation Date an Event of Default shall have occurred and be continuing, no payment of any Distribution (including any Additional Interest Amounts) on, Redemption Price of or
Liquidation Distribution in respect of, any Common Security, and no other payment on account of the redemption, liquidation or other acquisition of Common Securities, shall be made unless payment in full in cash of all accumulated and unpaid
Distributions (including any Additional Interest Amounts) on all Outstanding Preferred Securities for all Distribution periods terminating on or prior thereto, or in the case of payment of the Redemption Price the full amount of such Redemption
Price on all Outstanding Preferred Securities then called for redemption, or in the case of payment of the Liquidation Distribution the full amount of such Liquidation Distribution on all Outstanding Preferred Securities, shall have been made or
provided for, and all funds immediately available to the Property Trustee shall first be applied to the payment in full in cash of all Distributions (including any Additional Interest Amounts) on, or the Redemption Price of or the Liquidation
Distribution in respect of, the Preferred Securities then due and payable. 
 (b) In the case of the occurrence of any Event of Default, the
Holders of the Common Securities shall have no right to act with respect to any such Event of Default under this Trust Agreement until all such Events of Default with respect to the Preferred Securities have been cured, waived or otherwise
eliminated. Until all such Events of Default under this Trust Agreement with respect to the Preferred Securities have been so cured, waived or otherwise eliminated, the Property Trustee shall act solely on behalf of the Holders of the Preferred
Securities and not on behalf of the Holders of the Common Securities, and only the Holders of all the Preferred Securities will have the right to direct the Property Trustee to act on their behalf. 
 Section 4.4. Payment Procedures. 
 Payments of Distributions (including any Additional Interest Amounts), the Redemption Price, Liquidation Amount or any other amounts in respect of the Preferred Securities shall be made by wire transfer at such place and to such account at
a banking institution in the United 

  

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States as may be designated in writing at least ten (10) Business Days prior to the date for payment by the Person entitled thereto unless proper
written transfer instructions have not been received by the relevant record date, in which case such payments shall be made by check mailed to the address of such Person as such address shall appear in the Securities Register. If any Preferred
Securities are held by a Depositary, such Distributions thereon shall be made to the Depositary in immediately available funds. Payments in respect of the Common Securities shall be made in such manner as shall be mutually agreed between the
Property Trustee and the Holder of all the Common Securities. 
 Section 4.5. Withholding Tax. 
 The Trust and the Administrative Trustees shall comply with all withholding and backup withholding tax requirements under United States federal, state and
local law. The Administrative Trustees on behalf of the Trust shall request, and the Holders shall provide to the Trust, such forms or certificates as are necessary to establish an exemption from withholding and backup withholding tax with respect
to each Holder and any representations and forms as shall reasonably be requested by the Administrative Trustees on behalf of the Trust to assist it in determining the extent of, and in fulfilling, its withholding and backup withholding tax
obligations. The Administrative Trustees shall file required forms with applicable jurisdictions and, unless an exemption from withholding and backup withholding tax is properly established by a Holder, shall remit amounts withheld with respect to
the Holder to applicable jurisdictions. To the extent that the Trust is required to withhold and pay over any amounts to any jurisdiction with respect to Distributions or allocations to any Holder, the amount withheld shall be deemed to be a
Distribution in the amount of the withholding to the Holder. In the event of any claimed overwithholding, Holders shall be limited to an action against the applicable jurisdiction. If the amount required to be withheld was not withheld from actual
Distributions made, the Administrative Trustees on behalf of the Trust may reduce subsequent Distributions by the amount of such required withholding. 
 Section 4.6. Tax Returns and Other Reports. 
 The Administrative Trustees shall prepare (or cause
to be prepared) at the principal office of the Trust in the United States, as defined for purposes of Treasury regulations section 301.7701-7, at the Depositor’s expense, and file, all United States federal, state and local tax and information
returns and reports required to be filed by or in respect of the Trust. The Administrative Trustees shall prepare at the principal office of the Trust in the United States, as defined for purposes of Treasury regulations section 301.7701-7, and
furnish (or cause to be prepared and furnished), by January 31 in each taxable year of the Trust to each Holder all Internal Revenue Service forms and returns required to be provided by the Trust. The Administrative Trustees shall provide the
Depositor, Kodiak Capital Management Company LLC and the Property Trustee with a copy of all such returns and reports promptly after such filing or furnishing. 
 Section 4.7. Payment of Taxes, Duties, Etc. of the Trust. 
 Upon receipt under the Notes of
Additional Tax Sums and upon the written direction of the Administrative Trustees, the Property Trustee shall promptly pay, solely out of monies on 

  

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deposit pursuant to this Trust Agreement, any Additional Taxes imposed on the Trust by the United States or any other taxing authority. 
 Section 4.8. Payments under Indenture or Pursuant to Direct Actions. 
 Any amount payable hereunder to any Holder of Preferred Securities shall be reduced by the amount of any corresponding payment such Holder (or any Owner
with respect thereto) has directly received pursuant to Section 5.8 of the Indenture or Section 6.10(b) of this Trust Agreement. 
 Section 4.9. Exchanges. 
 (a) If at any time the Depositor or any of its Affiliates (in either case, a
“Depositor Affiliate”) is the Owner or Holder of any Preferred Securities, such Depositor Affiliate shall have the right to deliver to the Property Trustee all or such portion of its Preferred Securities as it elects and, subject to
compliance with Sections 2.2 and 3.5 of the Indenture, receive, in exchange therefor, a Like Amount of Notes. Such election shall be exercisable effective on any Distribution Date by such Depositor Affiliate delivering to the Property Trustee
(i) at least ten (10) Business Days prior to the Distribution Date on which such exchange is to occur, the registration instructions and the documentation, if any, required pursuant to Sections 2.2 and 3.5 of the Indenture to enable the
Indenture Trustee to issue the requested Like Amount of Notes, (ii) a written notice of such election specifying the Liquidation Amount of Preferred Securities with respect to which such election is being made and the Distribution Date on which
such exchange shall occur, which Distribution Date shall be not less than ten (10) Business Days after the date of receipt by the Property Trustee of such election notice and (iii) shall be conditioned upon such Depositor Affiliate having
delivered or caused to be delivered to the Property Trustee or its designee the Preferred Securities that are the subject of such election by 10:00 A.M. New York City time, on the Distribution Date on which such exchange is to occur. After the
exchange, such Preferred Securities will be canceled and will no longer be deemed to be Outstanding and all rights of the Depositor Affiliate with respect to such Preferred Securities will cease. 
 (b) In the case of an exchange described in Section 4.9(a), the Property Trustee on behalf of the Trust will, on the date of such exchange,
exchange Notes having a principal amount equal to a proportional amount of the aggregate Liquidation Amount of the Outstanding Common Securities, based on the ratio of the aggregate Liquidation Amount of the Preferred Securities exchanged pursuant
to Section 4.9(a) divided by the aggregate Liquidation Amount of the Preferred Securities Outstanding immediately prior to such exchange, for such proportional amount of Common Securities held by the Depositor (which contemporaneously
shall be canceled and no longer be deemed to be Outstanding); provided, that the Depositor delivers or causes to be delivered to the Property Trustee or its designee the required amount of Common Securities to be exchanged by 10:00 A.M., New
York City time, on the Distribution Date on which such exchange is to occur. 
 Section 4.10. Calculation Agent. 
 (a) The Property Trustee shall initially, and, subject to the immediately following sentence, for so long as it holds any of the Notes, be the Calculation
Agent for purposes of 

  

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determining LIBOR for each Distribution Date. The Calculation Agent may be removed by the Administrative Trustees at any time. If the Calculation Agent is
unable or unwilling to act as such or is removed by the Administrative Trustees, the Administrative Trustees will promptly appoint as a replacement Calculation Agent the London office of a leading bank which is engaged in transactions in six
(6) month Eurodollar deposits in the international Eurodollar market and which does not control or is not controlled by or under common control with the Administrative Trustee or its Affiliates. The Calculation Agent may not resign its duties
without a successor having been duly appointed. 
 (b) The Calculation Agent shall be required to agree, and the Property Trustee as the
initial Calculation Agent hereby agrees, that, as soon as possible after 10:00 A.M. (New York City time) on each LIBOR Determination Date, but in no event later than 10:00 A.M. (New York City time) on the Business Day immediately following each
LIBOR Determination Date, the Calculation Agent will calculate the interest rate (rounded to the nearest cent, with half a cent being rounded upwards) for the related Distribution Date, and will communicate such rate and amount to the Depositor, the
Administrative Trustees, the Note Trustee, the Property Trustee (if the Property Trustee is not the Calculation Agent), each Paying Agent and the Depositary. The Calculation Agent will also specify to the Administrative Trustees the quotations upon
which the foregoing rates and amounts are based and, in any event, the Calculation Agent shall notify the Administrative Trustees before 5:00 P.M. (New York time) on each LIBOR Determination Date that either: (i) it has determined or is in the
process of determining the foregoing rates and amounts or (ii) it has not determined and is not in the process of determining the foregoing rates and amounts, together with its reasons therefor. The Calculation Agent’s determination of the
foregoing rates and amounts for any Distribution Date will (in the absence of manifest error) be final and binding upon all parties. For the sole purpose of calculating the interest rate for the Trust Securities, “Business Day”
shall be defined as any day on which dealings in deposits in Dollars are transacted in the London interbank market. 
 Section 4.11.
Certain Accounting Matters. 
 (a) At all times during the existence of the Trust, the Administrative Trustees shall keep, or cause to
be kept at the principal office of the Trust in the United States, as defined for purposes of Treasury Regulations section 301.7701-7, full books of account, records and supporting documents, which shall reflect in reasonable detail each transaction
of the Trust. The books of account shall be maintained on the accrual method of accounting, in accordance with U.S. generally accepted accounting principles, consistently applied. 
 (b) The Administrative Trustees shall either (i) if the Depositor is then subject to such reporting requirements, cause each Form 10-K and Form 10-Q
prepared by the Depositor and filed with the Commission in accordance with the Exchange Act to be delivered to each Holder, with a copy to the Property Trustee, within thirty (30) days after the filing thereof or (ii) cause to be prepared
at the principal office of the Trust in the United States, as defined for purposes of Treasury Regulations section 301.7701-7, and delivered to each of the Holders, with a copy to the Property Trustee, (A) within ninety (90) days after the
end of each Fiscal Year, audited annual financial statements of the Depositor, including a balance sheet of the Trust as of the end of such Fiscal Year, and the related statements of income or loss and (B) within sixty (60) days after the
end of each of the first three (3) fiscal quarters, unaudited financial statements of the 

  

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Depositor, including a balance sheet of the Trust as of the end of such quarter and the related statements of income or loss. 
 (c) If the Depositor intends to file its annual and quarterly information with the Commission in electronic form pursuant to Regulation S-T of the
Commission using the Commission’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system, the Administrative Trustees shall notify the Property Trustee in the manner prescribed herein of each such annual and
quarterly filing. The Property Trustee is hereby authorized and directed to access the EDGAR system for purposes of retrieving the financial information so filed. Compliance with the foregoing shall constitute delivery by the Administrative Trustees
of its financial statements to the Property Trustee in compliance with the provisions of Section 314(a) of the Trust Indenture Act, if applicable. The Property Trustee shall have no duty to search for or obtain any electronic or other filings
that the Depositor makes with the Commission, regardless of whether such filings are periodic, supplemental or otherwise. Delivery of reports, information and documents to the Property Trustee pursuant to this Section 4.11(c) shall be
solely for purposes of compliance with this Section 4.11 and, if applicable, with Section 314(a) of the Trust Indenture Act. The Property Trustee’s receipt of such reports, information and documents shall not constitute notice
to it of the content thereof or any matter determinable from the content thereof, including the Depositor’s compliance with any of its covenants hereunder, as to which the Property Trustee is entitled to rely upon Officers’ Certificates.

 (d) The Trust shall maintain one or more bank accounts in the United States, as defined for purposes of Treasury Regulations section
301.7701-7, in the name and for the sole benefit of the Trust; provided, however, that all payments of funds in respect of the Notes held by the Property Trustee shall be made directly to the Payment Account and no other funds
of the Trust shall be deposited in the Payment Account. The sole signatories for such accounts (including the Payment Account) shall be designated by the Property Trustee. 
 ARTICLE V 
 SECURITIES 
 Section 5.1. Initial Ownership. 
 Upon the creation of the Trust and the contribution by the
Depositor referred to in Section 2.3 and until the issuance of the Trust Securities, and at any time during which no Trust Securities are Outstanding, the Depositor shall be the sole beneficial owner of the Trust. 
 Section 5.2. Authorized Trust Securities. 
 The Trust shall be authorized to issue one series of Preferred Securities having an aggregate Liquidation Amount of $28,125,000 and one series of Common Securities having an aggregate Liquidation Amount of $870,000.

 Section 5.3. Issuance of the Common Securities; Subscription and Purchase of Notes. 
 On the Closing Date, an Administrative Trustee, on behalf of the Trust, shall execute and deliver to the Depositor Common Securities Certificates,
registered in the name of the Depositor, 

  

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evidencing an aggregate of 870 Common Securities having an aggregate Liquidation Amount of Eight Hundred Seventy Thousand Dollars ($870,000), against receipt
by the Trust of the aggregate purchase price of such Common Securities of Eight Hundred Seventy Thousand Dollars ($870,000). Contemporaneously therewith and with the sale by the Trust to the Holders of an aggregate of Twenty Eight Thousand One
Hundred Twenty Five (28,125) Preferred Securities having an aggregate Liquidation Amount of Twenty Eight Million One Hundred Twenty Five Thousand Dollars ($28,125,000), an Administrative Trustee, on behalf of the Trust, shall purchase from the
Depositor Notes, to be registered in the name of the Property Trustee on behalf of the Trust and having an aggregate principal amount equal to Twenty Eight Million Nine Hundred Ninety Five Thousand Dollars ($28,995,000), and, in satisfaction of the
purchase price for such Notes, the Property Trustee, on behalf of the Trust, shall deliver to the Depositor the sum of Twenty Eight Million Nine Hundred Ninety Five Thousand Dollars ($28,995,000) (being the sum of the aggregate amount paid by the
Holders for the Preferred Securities and the amount paid by the Depositor for the Common Securities). 
 Section 5.4. The Securities
Certificates. 
 (a) The Preferred Securities Certificates shall be issued in minimum denominations of $250,000 Liquidation Amount and
integral multiples of $1,000 in excess thereof, and the Common Securities Certificates shall be issued in minimum denominations of $10,000 Liquidation Amount and integral multiples of $1,000 in excess thereof. The Securities Certificates shall be
executed on behalf of the Trust by manual or facsimile signature of at least one Administrative Trustee. Securities Certificates bearing the signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to
sign such Securities Certificates on behalf of the Trust shall be validly issued and entitled to the benefits of this Trust Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the delivery
of such Securities Certificates or did not have such authority at the date of delivery of such Securities Certificates. 
 (b) On the Closing
Date, upon the written order of an authorized officer of the Depositor, the Administrative Trustees shall cause Securities Certificates to be executed on behalf of the Trust and delivered, without further corporate action by the Depositor, in
authorized denominations. 
 (c) The Preferred Securities issued to QIBs/QPs and/or the Purchaser shall be, except as provided in
Section 5.6, Book-Entry Preferred Securities issued in the form of one or more Global Preferred Securities registered in the name of the Depositary, or its nominee and deposited with the Depositary or the Property Trustee as a custodian
for the Depositary for credit by the Depositary to the respective accounts of the Depositary Participants thereof (or such other accounts as they may direct). The Preferred Securities issued to a Person other than a QIB/QP or the Purchaser shall be
issued in the form of Definitive Preferred Securities Certificates. 
 (d) A Preferred Security shall not be valid until authenticated by the
manual signature of an authorized signatory of the Property Trustee. Such signature shall be conclusive evidence that the Preferred Security has been authenticated under this Trust Agreement. Upon written order of the Trust signed by one
Administrative Trustee, the Property Trustee shall authenticate and deliver one or more Preferred Securities Certificates evidencing the Preferred Securities for 

  

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original issue. The Property Trustee may appoint an authenticating agent that is a U.S. Person acceptable to the Trust to authenticate the Preferred
Securities. A Common Security need not be so authenticated and shall be valid upon execution by one or more Administrative Trustees. The form of the certificate of authentication is specified in Section 5.13. 
 (e) Upon issuance of the Trust Securities as provided in this Trust Agreement, the Trust Securities so issued shall be deemed to be validly issued, fully
paid and nonassesable, and each Holder thereof shall be entitled to the benefits provided by this Trust Agreement. 
 Section 5.5.
Rights of Holders. 
 The Trust Securities shall have no, and the issuance of the Trust Securities is not subject to, preemptive or
similar rights under this Trust Agreement and when issued and delivered to Holders against payment of the purchase price therefor will be fully paid and non-assessable by the Trust. Except as provided in Section 5.11(b), the Holders of
the Trust Securities, in their capacities as such, shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Delaware.

 Section 5.6. Book-Entry Preferred Securities. 
 (a) A Global Preferred Security may be exchanged, in whole or in part, for Definitive Preferred Securities Certificates registered in the names of the Owners only if such exchange complies with Section 5.7
and (i) the Depositary advises the Administrative Trustees and the Property Trustee in writing that the Depositary is no longer willing or able properly to discharge its responsibilities with respect to the Global Preferred Security, and no
qualified successor is appointed by the Administrative Trustees within ninety (90) days of receipt of such notice, (ii) the Depositary ceases to be a clearing agency registered under the Exchange Act and the Administrative Trustees fail to
appoint a qualified successor within ninety (90) days of obtaining knowledge of such event, (iii) the Administrative Trustees at their option advise the Property Trustee in writing that the Trust elects to terminate the book-entry system
through the Depositary or (iv) a Note Event of Default has occurred and is continuing. Upon the occurrence of any event specified in clause (i), (ii), (iii) or (iv) above in this Section 5.6(a), the Administrative Trustees
shall notify the Depositary and instruct the Depositary to notify all Owners of Book-Entry Preferred Securities, the Delaware Trustee and the Property Trustee of the occurrence of such event and of the availability of the Definitive Preferred
Securities Certificates to Owners of the Preferred Securities requesting the same. Upon the issuance of Definitive Preferred Securities Certificates, the Trustees shall recognize the Holders of the Definitive Preferred Securities Certificates as
Holders. Notwithstanding the foregoing, if an Owner of a beneficial interest in a Global Preferred Security wishes at any time to transfer an interest in such Global Preferred Security to a Person other than a QIB/QP or the Purchaser, such transfer
shall be effected, subject to the Applicable Depositary Procedures, in accordance with the provisions of this Section 5.6 and Section 5.7, and the transferee shall receive a Definitive Preferred Securities Certificate in
connection with such transfer. A holder of a Definitive Preferred Securities Certificate that is a QIB/QP or the Purchaser may, upon request and in accordance with the provisions of this Section 5.6 and Section 5.7, exchange
such Definitive Preferred Securities Certificate for a beneficial interest in a Global Preferred Security. 
  

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 (b) If any Global Preferred Security is to be exchanged for Definitive Preferred Securities Certificates
or canceled in part, or if any Definitive Preferred Securities Certificate is to be exchanged in whole or in part for any Global Preferred Security, then either (i) such Global Preferred Security shall be so surrendered for exchange or
cancellation as provided in this Article V or (ii) the aggregate Liquidation Amount represented by such Global Preferred Security shall be reduced, subject to Section 5.4, or increased by an amount equal to the Liquidation
Amount represented by that portion of the Global Preferred Security to be so exchanged or canceled, or equal to the Liquidation Amount represented by such Definitive Preferred Securities Certificates to be so exchanged for any Global Preferred
Security, as the case may be, by means of an appropriate adjustment made on the records of the Securities Registrar, whereupon the Property Trustee, in accordance with the Applicable Depositary Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records. Upon any such surrender to the Administrative Trustees or the Securities Registrar of any Global Preferred Security or Securities by the Depositary, accompanied by
registration instructions, the Administrative Trustees, or any one of them, shall execute the Definitive Preferred Securities Certificates in accordance with the instructions of the Depositary and, the Property Trustee, upon receipt thereof and of a
written order of the Trust executed by at least one (1) Administrative Trustee, shall authenticate and deliver such Definitive Preferred Securities Certificates. None of the Securities Registrar or the Trustees shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be fully protected in relying on, such instructions. 
 (c) Every
Definitive Preferred Securities Certificate executed and delivered upon registration or transfer of, or in exchange for or in lieu of, a Global Preferred Security or any portion thereof shall be executed and delivered in the form of, and shall be, a
Global Preferred Security, unless such Definitive Preferred Securities Certificate is registered in the name of a Person other than the Depositary for such Global Preferred Security or a nominee thereof. 
 (d) The Depositary or its nominee, as registered owner of a Global Preferred Security, shall be the Holder of such Global Preferred Security for all
purposes under this Trust Agreement and the Global Preferred Security, and Owners with respect to a Global Preferred Security shall hold such interests pursuant to the Applicable Depositary Procedures. The Securities Registrar and the Trustees shall
be entitled to deal with the Depositary for all purposes of this Trust Agreement relating to the Global Preferred Securities (including the payment of the Liquidation Amount of and Distributions on the Book-Entry Preferred Securities represented
thereby and the giving of instructions or directions by Owners of Book-Entry Preferred Securities represented thereby and the giving of notices) as the sole Holder of the Book-Entry Preferred Securities represented thereby and shall have no
obligations to the Owners thereof. None of the Trustees nor the Securities Registrar shall have any liability in respect of any transfers effected by the Depositary. 
 (e) The rights of the Owners of the Book-Entry Preferred Securities shall be exercised only through the Depositary and shall be limited to those established by law, the Applicable Depositary Procedures and agreements
between such Owners and the Depositary and/or the Depositary Participants; provided, that solely for the purpose of determining whether the Holders of the requisite amount of Preferred Securities have voted on any matter provided for in this
Trust Agreement, to the extent that Preferred Securities are represented by a Global 

  

 29 

 
Preferred Security, the Trustees may conclusively rely on, and shall be fully protected in relying on, any written instrument (including a proxy) delivered
to the Property Trustee by the Depositary or a Depositary Participant setting forth the Owners’ votes or assigning the right to vote on any matter to any other Persons either in whole or in part. To the extent that Preferred Securities are
represented by a Global Preferred Security, the initial Depositary will make book-entry transfers among the Depositary Participants and receive and transmit payments on the Preferred Securities that are represented by a Global Preferred Security to
such Depositary Participants, and none of the Depositor or the Trustees shall have any responsibility or obligation with respect thereto. 
 (f) To the extent that a notice or other communication to the Holders is required under this Trust Agreement, for so long as Preferred Securities are represented by a Global Preferred Security, the Trustees shall give all such notices and
communications to the Depositary, and shall have no obligations to the Owners. 
 Section 5.7. Registration of Transfer and Exchange
of Preferred Securities Certificates. 
 (a) The Property Trustee shall keep or cause to be kept, at the Corporate Trust Office, a
register or registers (the “Securities Register”) in which the registrar and transfer agent with respect to the Trust Securities (the “Securities Registrar”), subject to such reasonable regulations as it may
prescribe, shall provide for the registration of Preferred Securities Certificates and Common Securities Certificates and registration of transfers and exchanges of Preferred Securities Certificates as herein provided. The Person acting as the
Property Trustee shall at all times also be the Securities Registrar. The provisions of Article VIII shall apply to the Property Trustee in its role as Securities Registrar. 
 (b) Subject to Section 5.7(d), upon surrender for registration of transfer of any Preferred Securities Certificate at the office or agency
maintained pursuant to Section 5.7(f), the Administrative Trustees or any one of them shall execute by manual or facsimile signature and deliver to the Property Trustee, and upon receipt thereof and of a written order of the Trust
executed by at least one (1) Administrative Trustee, the Property Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Preferred Securities Certificates in authorized denominations of
a like aggregate Liquidation Amount as may be required by this Trust Agreement dated the date of execution by such Administrative Trustee or Trustees. At the option of a Holder, Preferred Securities Certificates may be exchanged for other Preferred
Securities Certificates in authorized denominations and of a like aggregate Liquidation Amount upon surrender of the Preferred Securities Certificate to be exchanged at the office or agency maintained pursuant to Section 5.7(f). Whenever
any Preferred Securities Certificates are so surrendered for exchange, the Administrative Trustees or any one of them shall execute by manual or facsimile signature and deliver to the Property Trustee, and upon receipt thereof and of a written order
of the Trust executed by at least one (1) Administrative Trustee, the Property Trustee shall authenticate and deliver, the Preferred Securities Certificates that the Holder making the exchange is entitled to receive. 
 (c) The Securities Registrar shall not be required (i) to issue, register the transfer of or exchange any Preferred Security during a period
beginning at the opening of business fifteen (15) days before the day of selection for redemption of such Preferred Securities pursuant to 

  

 30 

 
Article IV and ending at the close of business on the day of mailing of the notice of redemption or (ii) to register the transfer of or exchange
any Preferred Security so selected for redemption in whole or in part, except, in the case of any such Preferred Security to be redeemed in part, any portion thereof not to be redeemed. 
 (d) Every Preferred Securities Certificate presented or surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by
a written instrument of transfer in form satisfactory to the Securities Registrar duly executed by the Holder or such Holder’s attorney duly authorized in writing and accompanied by a certificate of the transferee substantially in the form set
forth as Exhibit E attached hereto. 
 (e) No service charge shall be made for any registration of transfer or exchange of Preferred
Securities Certificates, but the Property Trustee on behalf of the Trust may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Preferred Securities
Certificates. 
 (f) The Administrative Trustees shall designate an office or offices or agency or agencies where Preferred Securities
Certificates may be surrendered for registration of transfer or exchange and initially designate the Corporate Trust Office of the Property Trustee as the office and agency for such purposes. The Administrative Trustees shall give prompt written
notice to the Depositor, the Property Trustee and to the Holders of any change in the location of any such office or agency. 
 (g) The
Preferred Securities may only be transferred to a “Qualified Purchaser” as such term is defined in Section 2(a)(51) of the Investment Company Act. 
 (h) Neither the Property Trustee nor the Securities Registrar shall be responsible for ascertaining whether any transfer hereunder complies with the registration provisions of or any exemptions from the Securities
Act, applicable state securities laws or the applicable laws of any other jurisdiction, ERISA, the Code or the Investment Company Act; provided, that if a Preferred Securities Certificate is specifically required by the express terms of this
Section 5.7 to be delivered to the Property Trustee or the Securities Registrar by a Holder or transferee of a Preferred Security, the Property Trustee and the Securities Registrar shall be under a duty to receive and examine the same to
determine whether the Preferred Securities Certificate substantially conforms on its face to the requirements of this Trust Agreement and shall promptly notify the party delivering the same if such Preferred Securities Certificate does not comply
with such terms. 
 Section 5.8. Mutilated, Destroyed, Lost or Stolen Securities Certificates. 
 (a) If any mutilated Securities Certificate shall be surrendered to the Securities Registrar together with such security or indemnity as may be required
by the Securities Registrar to save each of the Trustees harmless, then, the Administrative Trustees, or any one of them, on behalf of the Trust, shall execute and make available for delivery and, with respect to Preferred Securities, the Property
Trustee upon written order of the Trust executed by at least one (1) Administrative Trustee shall authenticate, in exchange therefor a new Securities Certificate of like class, tenor and denomination. 
  

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 (b) If the Securities Registrar shall receive evidence to its satisfaction of the destruction, loss or
theft of any Securities Certificate and there shall have been delivered to the Securities Registrar such security or indemnity as may be required by it to save each of the Trustees harmless, then in the absence of notice that such Securities
Certificate shall have been acquired by a protected purchaser, the Administrative Trustees, or any one of them, on behalf of the Trust, shall execute and make available for delivery, and, with respect to Preferred Securities, the Property Trustee
upon written order of the Trust executed by at least one (1) Administrative Trustee shall authenticate, in exchange for or in lieu of any such destroyed, lost or stolen Securities Certificate, a new Securities Certificate of like class, tenor
and denomination. 
 (c) In connection with the issuance of any new Securities Certificate under this Section 5.8, the
Administrative Trustees or the Securities Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 (d) Any duplicate Securities Certificate issued pursuant to this Section 5.8 shall constitute conclusive evidence of an undivided beneficial
interest in the assets of the Trust corresponding to that evidenced by the mutilated, lost, stolen or destroyed Securities Certificate, as if originally issued, whether or not the lost, stolen or destroyed Securities Certificate shall be found at
any time. 
 (e) If any such mutilated, destroyed, lost or stolen Securities Certificate has become or is about to become due and payable,
the Depositor in its discretion may provide the Property Trustee or the Paying Agent, as applicable, with the funds to pay such Trust Security and upon receipt of such funds and written direction from the Depositor to do so, the Property Trustee or
the Paying Agent, as applicable, shall pay such Trust Security instead of issuing a new Securities Certificate. 
 (f) The provisions of this
Section 5.8 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement of mutilated, destroyed, lost or stolen Securities Certificates. 
 Section 5.9. Persons Deemed Holders. 
 The Trustees and the Securities Registrar shall each treat the Person in whose name any Securities Certificate shall be registered in the Securities Register as the owner of the Trust Securities represented by such Securities Certificate
for the purpose of receiving Distributions and for all other purposes whatsoever, and none of the Trustees and the Securities Registrar shall be bound by any notice to the contrary. 
 Section 5.10. Cancellation. 
 All
Preferred Securities Certificates surrendered for registration of transfer or exchange or for payment shall, if surrendered to any Person other than the Property Trustee, be delivered to the Property Trustee, and any such Preferred Securities
Certificates and Preferred Securities Certificates surrendered directly to the Property Trustee for any such purpose shall be promptly canceled by the Property Trustee. The Administrative Trustees may at any time deliver to the Property Trustee for
cancellation any Preferred Securities Certificates previously delivered 

  

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hereunder that the Administrative Trustees may have acquired in any manner whatsoever, and all Preferred Securities Certificates so delivered shall be
promptly canceled by the Property Trustee. No Preferred Securities Certificates shall be executed and delivered in lieu of or in exchange for any Preferred Securities Certificates canceled as provided in this Section 5.10, except as
expressly permitted by this Trust Agreement. All canceled Preferred Securities Certificates shall be retained by the Property Trustee in accordance with its customary practices. 
 Section 5.11. Ownership of Common Securities by Depositor. 
 (a) On the Closing Date, the Depositor shall acquire, and thereafter shall retain, beneficial and record ownership of the Common Securities. Neither the Depositor nor any successor Holder of the Common Securities may
transfer less than all of the Common Securities, and the Depositor or any such successor Holder may transfer the Common Securities only (i) in connection with a consolidation or merger of the Depositor into another Person, or any conveyance,
transfer or lease by the Depositor of its properties and assets substantially as an entirety to any Person (in which event such Common Securities will be transferred to such surviving entity, transferee or lessee, as the case may be), pursuant to
Section 8.1 of the Indenture or (ii) to the Depositor or an Affiliate of the Depositor, in each such case in compliance with applicable law (including the Securities Act and applicable state securities and blue sky laws). To the fullest
extent permitted by law, any attempted transfer of the Common Securities other than as set forth in the immediately preceding sentence shall be void. The Administrative Trustees shall cause each Common Securities Certificate issued to the Depositor
to contain a legend stating substantially “THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST AGREEMENT.” 
 (b) Any Holder of the Common Securities shall be liable for the debts and obligations of the Trust in the manner and to the extent set forth herein with
respect to the Depositor and agrees that it shall be subject to all liabilities to which the Depositor may be subject and, prior to becoming such a Holder, shall deliver to the Administrative Trustees an instrument of assumption satisfactory to such
Trustees. 
 Section 5.12. Restrictive Legends. 
 (a) Each Preferred Security Certificate shall bear a legend in substantially the following form: 
 “[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST
COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS PREFERRED SECURITY IS EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST
AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF 

  

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DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
 UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO ALESCO CAPITAL TRUST I OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF ANY PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES
ACT. 
 THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT
(A) SUCH PREFERRED SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST, OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED IN SECTION 2(a)(51) OF THE
INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $250,000. TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $250,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID
AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT 

  

 34 

 
LIMITED TO, THE RECEIPT OF THE LIQUIDATION AMOUNT OF OR DISTRIBUTIONS ON SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES. 
 THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE PROVISIONS OF AN AMENDED AND RESTATED TRUST AGREEMENT OF ALESCO CAPITAL TRUST I DATED                     , 2007 (A COPY
OF WHICH IS ON FILE WITH THE SECRETARY OF THE ISSUER) AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE PROVISIONS OF SUCH TRUST AGREEMENT. THE HOLDER OF THIS PREFERRED SECURITY,
OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR SIMILAR LAW (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS
INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR
HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF
THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.” 
 (b) The above legend shall not be removed from any of the Preferred Securities Certificates unless there is delivered to the Property Trustee and the
Depositor satisfactory evidence, which may include an opinion of counsel, as may be reasonably required to ensure that any future transfers thereof may be made without restriction under the provisions of the Securities Act and other applicable law.
Upon provision of such satisfactory evidence, one or more of the Administrative Trustees on behalf of the Trust shall execute and deliver to the Property Trustee, and the Property Trustee shall authenticate and deliver, at the written direction of
the Administrative Trustees and the Depositor, Preferred Securities Certificates that do not bear the legend. 
 Section 5.13. Form
of Certificate of Authentication. 
 The Property Trustee’s certificate of authentication shall be in substantially the following
form: 
  

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 This is one of the Preferred Securities referred to in the within-mentioned Trust
Agreement. 
  

									
	Dated:	 		 	WELLS FARGO BANK, N.A., not in its
		 		 	individual capacity, but solely as Property Trustee
					
		 		 		 	By:	 	  

		 		 		 		 	Authorized Signatory

 ARTICLE VI 
 MEETINGS; VOTING; ACTS OF HOLDERS 
 Section 6.1. Notice of Meetings. 
 Notice of all meetings of the Holders of the Preferred Securities, stating the time, place and purpose of the meeting, shall be given by the
Administrative Trustees pursuant to Section 10.8 to each Holder of Preferred Securities, at such Holder’s registered address, at least fifteen (15) days and not more than ninety (90) days before the meeting. At any such
meeting, any business properly before the meeting may be so considered whether or not stated in the notice of the meeting. Any adjourned meeting may be held as adjourned without further notice. 
 Section 6.2. Meetings of Holders of the Preferred Securities. 
 (a) No annual meeting of Holders is required to be held. The Administrative Trustees, however, shall call a meeting of the Holders of the Preferred Securities to vote on any matter upon the written request of the
Holders of at least twenty-five percent (25%) in aggregate Liquidation Amount of the Outstanding Preferred Securities and the Administrative Trustees or the Property Trustee may, at any time in their discretion, call a meeting of the Holders of
the Preferred Securities to vote on any matters as to which such Holders are entitled to vote. 
 (b) The Holders of at least a Majority in
Liquidation Amount of the Preferred Securities, present in person or by proxy, shall constitute a quorum at any meeting of the Holders of the Preferred Securities. 
 (c) If a quorum is present at a meeting, an affirmative vote by the Holders present, in person or by proxy, holding Preferred Securities representing at least a Majority in Liquidation Amount of the Preferred
Securities held by the Holders present, either in person or by proxy, at such meeting shall constitute the action of the Holders of the Preferred Securities, unless this Trust Agreement requires a lesser or greater number of affirmative votes.

 Section 6.3. Voting Rights. 
 Holders shall be entitled to one vote for each $10,000 of Liquidation Amount represented by their Outstanding Trust Securities in respect of any matter as to which such Holders are entitled to vote. 
  

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 Section 6.4. Proxies, Etc. 
 At any meeting of Holders, any Holder entitled to vote thereat may vote by proxy; provided, that no proxy shall be voted at any meeting unless it
shall have been placed on file with the Administrative Trustees, or with such other officer or agent of the Trust as the Administrative Trustees may direct, for verification prior to the time at which such vote shall be taken. Pursuant to a
resolution of the Property Trustee, proxies may be solicited in the name of the Property Trustee or one or more officers of the Property Trustee. Only Holders of record shall be entitled to vote. When Trust Securities are held jointly by several
Persons, any one of them may vote at any meeting in person or by proxy in respect of such Trust Securities, but if more than one of them shall be present at such meeting in person or by proxy, and such joint owners or their proxies so present
disagree as to any vote to be cast, such vote shall not be received in respect of such Trust Securities. A proxy purporting to be executed by or on behalf of a Holder shall be deemed valid unless challenged at or prior to its exercise, and the
burden of proving invalidity shall rest on the challenger. No proxy shall be valid more than three (3) years after its date of execution. 
 Section 6.5. Holder Action by Written Consent. 
 Any action that may be taken by Holders at a meeting may be taken
without a meeting and without prior notice if Holders holding at least a Majority in Liquidation Amount of all Preferred Securities entitled to vote in respect of such action (or such lesser or greater proportion thereof as shall be required by any
other provision of this Trust Agreement) shall consent to the action in writing; provided, that notice of such action is promptly provided to the Holders of Preferred Securities that did not consent to such action. Any action that may be
taken by the Holders of all the Common Securities may be taken without a meeting and without prior notice if such Holders shall consent to the action in writing. 
 Section 6.6. Record Date for Voting and Other Purposes. 
 Except as provided in
Section 6.10(a), for the purposes of determining the Holders who are entitled to notice of and to vote at any meeting or to act by written consent, or to participate in any distribution on the Trust Securities in respect of which a
record date is not otherwise provided for in this Trust Agreement, or for the purpose of any other action, the Administrative Trustees may from time to time fix a date, not more than ninety (90) days prior to the date of any meeting of Holders
or the payment of a Distribution or other action, as the case may be, as a record date for the determination of the identity of the Holders of record for such purposes. 
 Section 6.7. Acts of Holders. 
 (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Trust Agreement to be given, made or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an
agent thereof duly appointed in writing; and, except as otherwise expressly provided herein, such action shall become effective when such instrument or instruments are delivered to an Administrative Trustee. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of 

  

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the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Trust Agreement and conclusive in favor of the Trustees, if made in the manner provided in this Section 6.7. 
 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity other than such signer’s individual capacity, such
certificate or affidavit shall also constitute sufficient proof of such signer’s authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other
manner that any Trustee receiving the same deems sufficient. 
 (c) The ownership of Trust Securities shall be proved by the Securities
Register. 
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Trust Security
shall bind every future Holder of the same Trust Security and the Holder of every Trust Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done
by the Trustees, the Administrative Trustees or the Trust in reliance thereon, whether or not notation of such action is made upon such Trust Security. 
 (e) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Trust Security may do so with regard to all or any part of the Liquidation Amount of such
Trust Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such Liquidation Amount. 
 (f) If any dispute shall arise among the Holders or the Trustees with respect to the authenticity, validity or binding nature of any request, demand, authorization, direction, notice, consent, waiver or other Act of
such Holder or Trustee under this Article VI, then the determination of such matter by the Property Trustee shall be conclusive with respect to such matter. 
 Section 6.8. Inspection of Records. 
 Upon reasonable written notice to the Administrative
Trustees and the Property Trustee, the records of the Trust shall be open to inspection by any Holder during normal business hours for any purpose reasonably related to such Holder’s interest as a Holder. 
 Section 6.9. Limitations on Voting Rights. 
 (a) Except as expressly provided in this Trust Agreement and in the Indenture and as otherwise required by law, no Holder of Preferred Securities shall have any right to vote or in any manner otherwise control the
administration, operation and management of the Trust or the obligations of the parties hereto, nor shall anything herein set forth, or contained in the terms of 

  

 38 

 
the Securities Certificates, be construed so as to constitute the Holders from time to time as partners or members of an association. 
 (b) So long as any Notes are held by the Property Trustee on behalf of the Trust, the Property Trustee shall not (i) direct the time, method and
place of conducting any proceeding for any remedy available to the Note Trustee, or exercise any trust or power conferred on the Property Trustee with respect to the Notes, (ii) waive any past default that may be waived under Section 5.13
of the Indenture or waive compliance with any covenant or condition under Section 10.7 of the Indenture, (iii) exercise any right to rescind or annul a declaration that the principal of all the Notes shall be due and payable or
(iv) consent to any amendment, modification or termination of the Indenture or the Notes, where such consent shall be required, without, in each case, obtaining the prior approval of the Holders of at least a Majority in Liquidation Amount of
the Preferred Securities; provided, that where a consent under the Indenture would require the consent of each holder of Notes (or each Holder of Preferred Securities) affected thereby, no such consent shall be given by the Property Trustee
without the prior written consent of each Holder of Preferred Securities. The Property Trustee shall not revoke any action previously authorized or approved by a vote of the Holders of the Preferred Securities, except by a subsequent vote of the
Holders of the Preferred Securities. In addition to obtaining the foregoing approvals of the Holders of the Preferred Securities, prior to taking any of the foregoing actions, the Property Trustee shall, at the expense of the Depositor, obtain an
Opinion of Counsel experienced in such matters to the effect that such action shall not cause the Trust to be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes. 
 (c) If any proposed amendment to the Trust Agreement provides for, or the Trustees otherwise propose to effect, (i) any action that would adversely
affect in any material respect the powers, preferences or special rights of the Preferred Securities, whether by way of amendment to this Trust Agreement or otherwise or (ii) the dissolution, winding-up or termination of the Trust, other than
pursuant to the terms of this Trust Agreement, then the Holders of Outstanding Preferred Securities as a class will be entitled to vote on such amendment or proposal and such amendment or proposal shall not be effective except with the approval of
the Holders of at least a Majority in Liquidation Amount of the Preferred Securities. Notwithstanding any other provision of this Trust Agreement, no amendment to this Trust Agreement may be made if, as a result of such amendment, it would cause the
Trust to be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes. 
 Section 6.10. Acceleration of Maturity; Rescission of Annulment; Waivers of Past Defaults. 
 (a) For so long as any
Preferred Securities remain Outstanding, if, upon a Note Event of Default, the Note Trustee fails or the holders of not less than twenty-five percent (25%) in principal amount of the outstanding Notes fail to declare the principal of all of the
Notes to be immediately due and payable, the Holders of at least twenty-five percent (25%) in Liquidation Amount of the Preferred Securities then Outstanding shall have the right to make such declaration by a notice in writing to the Property
Trustee, the Depositor and the Note Trustee. At any time after a declaration of acceleration with respect to the Notes has been made and before a judgment or decree for payment of the money due has been obtained by the Note Trustee as 

  

 39 

 
provided in the Indenture, the Holders of at least a Majority in Liquidation Amount of the Preferred Securities, by written notice to the Property Trustee,
the Depositor and the Note Trustee, may rescind and annul such declaration and its consequences if: 
 (i) the Depositor has
paid or deposited with the Note Trustee a sum sufficient to pay: 
 (A) all overdue installments of interest on all of the
Notes; 
 (B) any accrued Additional Interest on all of the Notes; 
 (C) the principal of and any premium, if any, on any Notes that have become due otherwise than by such declaration of acceleration and
interest and Additional Interest thereon at the rate borne by the Notes; and 
 (D) all sums paid or advanced by the Note
Trustee under the Indenture and the reasonable compensation, expenses, disbursements and advances of the Note Trustee, the Property Trustee and their agents and counsel; and 
 (ii) all Note Events of Default, other than the non-payment of the principal of the Notes that has become due solely by such acceleration,
have been cured or waived as provided in Section 5.13 of the Indenture. 
 Upon receipt by the Property Trustee of written notice
requesting such an acceleration, or rescission and annulment thereof, by Holders of any part of the Preferred Securities, a record date shall be established for determining Holders of Outstanding Preferred Securities entitled to join in such notice,
which record date shall be at the close of business on the day the Property Trustee receives such notice. The Holders of Preferred Securities on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in
such notice, whether or not such Holders remain Holders after such record date; provided, that, unless such declaration of acceleration, or rescission and annulment, as the case may be, shall have become effective by virtue of the requisite
percentage having joined in such notice prior to the day that is ninety (90) days after such record date, such notice of declaration of acceleration, or rescission and annulment, as the case may be, shall automatically and without further
action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after expiration of such ninety (90)-day period, a new written notice of declaration of acceleration,
or rescission and annulment thereof, as the case may be, that is identical to a written notice that has been canceled pursuant to the proviso to the immediately preceding sentence, in which event a new record date shall be established pursuant to
the provisions of this Section 6.10(a). 
 (b) For so long as any Preferred Securities remain Outstanding, to the fullest extent
permitted by law and subject to the terms of this Trust Agreement and the Indenture, upon a Note Event of Default specified in paragraph (a) or (b) of Section 5.1 of the Indenture, any Holder of Preferred Securities shall have the
right to institute a proceeding directly against the Depositor, pursuant to Section 5.8 of the Indenture, for enforcement of payment to such Holder of any amounts payable in respect of Notes having an aggregate principal amount equal to the
aggregate Liquidation Amount of the Preferred Securities of such Holder. Except as set forth in Section 

  

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6.10(a) and this Section 6.10(b), the Holders of Preferred Securities shall have no right to exercise directly any right or remedy
available to the holders of, or in respect of, the Notes. 
 (c) Notwithstanding paragraphs (a) and (b) of this
Section 6.10, the Holders of at least a Majority in Liquidation Amount of the Preferred Securities may, on behalf of the Holders of all the Preferred Securities, waive any Note Event of Default, except any Note Event of Default arising
from the failure to pay any principal of, premium, if any, or interest on (including any Additional Interest) the Notes (unless such Note Event of Default has been cured and a sum sufficient to pay all matured installments of interest and all
principal and premium, if any, on all Notes due otherwise than by acceleration has been deposited with the Note Trustee) or a Note Event of Default in respect of a covenant or provision that under the Indenture cannot be modified or amended without
the consent of the holder of each outstanding Note. Upon any such waiver, such Note Event of Default shall cease to exist and any Note Event of Default arising therefrom shall be deemed to have been cured for every purpose of the Indenture; but no
such waiver shall affect any subsequent Note Event of Default or impair any right consequent thereon. 
 (d) Notwithstanding paragraphs
(a) and (b) of this Section 6.10, the Holders of at least a Majority in Liquidation Amount of the Preferred Securities may, on behalf of the Holders of all the Preferred Securities, waive any past Event of Default and its
consequences, except any Event of Default which is attributable to a Note Event of Default which may not be waived pursuant to paragraph (c) of this Section 6.10. Upon such waiver, any such Event of Default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Trust Agreement, but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereon. 
 (e) The Holders of a Majority in Liquidation Amount of the Preferred Securities shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Property Trustee in respect of this Trust Agreement or the Notes or exercising any trust or power conferred upon the Property Trustee under this Trust Agreement; provided, that, subject to
Sections 8.5 and 8.7, the Property Trustee shall have the right to decline to follow any such direction if the Property Trustee being advised by counsel determines that the action so directed may not lawfully be taken, or if the
Property Trustee in good faith shall, by an officer or officers of the Property Trustee, determine that the proceedings so directed would be illegal or involve it in personal liability or be unduly prejudicial to the rights of Holders not party to
such direction; and provided, further, that nothing in this Trust Agreement shall impair the right of the Property Trustee to take any action deemed proper by the Property Trustee and which is not inconsistent with such direction.

 ARTICLE VII 
 REPRESENTATIONS
AND WARRANTIES 
 Section 7.1. Representations and Warranties of the Property Trustee and the Delaware Trustee. 
 The Property Trustee and the Delaware Trustee, each severally on behalf of and as to itself, hereby represents and warrants for the benefit of the
Depositor and the Holders that: 
  

 41 

 (a) the Property Trustee is a national banking association, duly organized and validly
existing under the laws of the United States of America; 
 (b) the Property Trustee has full power, authority and legal right
to execute, deliver and perform its obligations under this Trust Agreement and has taken all necessary action to authorize the execution, delivery and performance by it of this Trust Agreement; 
 (c) the Delaware Trustee is a corporation, duly organized with trust powers and validly existing and in good standing under the laws of
the State of Delaware; 
 (d) the Delaware Trustee has full corporate power, authority and legal right to execute, deliver and
perform its obligations under this Trust Agreement and has taken all necessary action to authorize the execution, delivery and performance by it of this Trust Agreement; 
 (e) this Trust Agreement has been duly authorized, executed and delivered by the Property Trustee and the Delaware Trustee and constitutes
the legal, valid and binding agreement of each of the Property Trustee and the Delaware Trustee enforceable against each of them in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws affecting creditors’ rights generally and to general principles of equity and the discretion of the court (regardless of whether considered in a proceeding in equity or at law); 
 (f) the execution, delivery and performance of this Trust Agreement have been duly authorized by all necessary corporate or other action
on the part of the Property Trustee and the Delaware Trustee and do not require any approval of stockholders of the Property Trustee and the Delaware Trustee and such execution, delivery and performance will not (i) violate the Restated
Organization Certificate or Articles of Association, as applicable, or By-laws of the Property Trustee or the Delaware Trustee, (ii) violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in
the imposition of any lien on any properties included in the Trust Property pursuant to the provisions of any indenture, mortgage, credit agreement, license or other agreement or instrument to which the Property Trustee or the Delaware Trustee is a
party or by which it or any of its properties or assets is bound, or (iii) violate any applicable law, governmental rule or regulation of the United States or the State of Delaware, as the case may be, governing the banking, trust or general
powers of the Property Trustee or the Delaware Trustee or any order, judgment or decree applicable to the Property Trustee or the Delaware Trustee; 
 (g) neither the authorization, execution or delivery by the Property Trustee or the Delaware Trustee of this Trust Agreement nor the consummation of any of the transactions by the Property Trustee or the Delaware
Trustee contemplated herein requires the consent or approval of, the giving of notice to, the registration with or the taking of any other action with respect to any governmental authority or agency under any existing law of the United States or the
State of Delaware governing the banking, 

  

 42 

 
trust or general powers of the Property Trustee or the Delaware Trustee, as the case may be; and 
 (h) to the best of each of the Property Trustee’s and the Delaware Trustee’s knowledge, there are no proceedings pending or
threatened against or affecting the Property Trustee or the Delaware Trustee in any court or before any governmental authority, agency or arbitration board or tribunal that, individually or in the aggregate, would materially and adversely affect the
Trust or would question the right, power and authority of the Property Trustee or the Delaware Trustee, as the case may be, to enter into or perform its obligations as one of the Trustees under this Trust Agreement. 
 Section 7.2. Representations and Warranties of Depositor. 
 The Depositor hereby represents and warrants for the benefit of the Holders and the Trustees that: 
 (a) the Depositor is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation; 
 (b) the Depositor has full corporate power, authority and legal right to execute, deliver and perform its obligations under this Trust Agreement and has taken all necessary action to authorize the execution, delivery
and performance by it of this Trust Agreement; 
 (c) this Trust Agreement has been duly authorized, executed and delivered by
the Depositor and constitutes the legal, valid and binding agreement of the Depositor enforceable against the Depositor in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization and
similar laws affecting creditors’ rights generally and to general principles of equity; 
 (d) the Securities
Certificates issued at the Closing Date on behalf of the Trust have been duly authorized by the Trust and, when authenticated in accordance with this Trust Agreement, will have been duly and validly executed, issued and delivered by the applicable
Trustees pursuant to the terms and provisions of, and in accordance with the requirements of, this Trust Agreement and the Holders will be, as of such date, entitled to the benefits of this Trust Agreement; 
 (e) the execution, delivery and performance of this Trust Agreement have been duly authorized by all necessary corporate or other action
on the part of the Depositor and do not require any approval of stockholders of the Depositor and such execution, delivery and performance will not (i) violate the articles or certificate of incorporation or by-laws (or other organizational
documents) of the Depositor or (ii) violate any applicable law, governmental rule or regulation governing the Depositor or any material portion of its property or any order, judgment or decree applicable to the Depositor or any material portion
of its property; 
 (f) neither the authorization, execution or delivery by the Depositor of this Trust Agreement nor the
consummation of any of the transactions by the Depositor 

  

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contemplated herein requires the consent or approval of, the giving of notice to, the registration with or the taking of any other action with respect to any
governmental authority or agency under any existing law governing the Depositor or any material portion of its property; and 
 (g) there are no proceedings pending or, to the best of the Depositor’s knowledge, threatened against or affecting the Depositor or any material portion of its property in any court or before any governmental authority, agency or
arbitration board or tribunal that, individually or in the aggregate, would materially and adversely affect the Trust or would question the right, power and authority of the Depositor, as the case may be, to enter into or perform its obligations
under this Trust Agreement. 
 ARTICLE VIII 
 THE TRUSTEES 
 Section 8.1. Number of Trustees. 
 The number of Trustees shall be four (4); provided, that the Property Trustee and the Delaware Trustee may be the same Person, in which case the
number of Trustees shall be three (3). The number of Trustees may be increased or decreased by Act of the Holder of the Common Securities subject to Sections 8.2, 8.3, and 8.4. The death, resignation, retirement, removal,
bankruptcy, incompetence or incapacity to perform the duties of a Trustee shall not operate to annul, dissolve or terminate the Trust. 
 Section 8.2. Property Trustee Required. 
 There shall at all times be a Property Trustee hereunder with respect to the
Trust Securities. The Property Trustee shall be a corporation or national banking association organized and doing business under the laws of the United States or of any state thereof, authorized to exercise corporate trust powers, having a combined
capital and surplus of at least fifty million dollars ($50,000,000), subject to supervision or examination by federal or state authority and having an office within the United States. If any such Person 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 8.2, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. If at any time the Property Trustee shall cease to be eligible in accordance with the provisions of this Section 8.2, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article VIII. 
 Section 8.3. Delaware Trustee Required. 
 (a) If required by the Delaware Statutory Trust Act, there shall at all times be a Delaware Trustee with respect to the Trust Securities. The Delaware
Trustee shall either be (i) a natural person who is at least 21 years of age and a resident of the State of Delaware or (ii) a legal entity that has its principal place of business in the State of Delaware, otherwise meets the requirements
of applicable Delaware law and shall act through one or more persons authorized to bind such entity. If at any time the Delaware Trustee shall cease to be eligible in accordance with 

  

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the provisions of this Section 8.3, it shall resign immediately in the manner and with the effect hereinafter specified in this Article
VIII. The Delaware Trustee shall have the same rights, privileges and immunities as the Property Trustee. 
 (b) The Delaware Trustee
shall not be entitled to exercise any powers, nor shall the Delaware Trustee have any of the duties and responsibilities, of the Property Trustee or the Administrative Trustees set forth herein. The Delaware Trustee shall be one of the trustees of
the Trust for the sole and limited purpose of fulfilling the requirements of Section 3807 of the Delaware Statutory Trust Act and for taking such actions as are required to be taken by a Delaware trustee under the Delaware Statutory Trust Act.
The duties (including fiduciary duties), liabilities and obligations of the Delaware Trustee shall be limited to (a) accepting legal process served on the Trust in the State of Delaware and (b) the execution of any certificates required to
be filed with the Secretary of State of the State of Delaware that the Delaware Trustee is required to execute under Section 3811 of the Delaware Statutory Trust Act and there shall be no other duties (including fiduciary duties) or
obligations, express or implied, at law or in equity, of the Delaware Trustee. 
 Section 8.4. Appointment of Administrative
Trustees. 
 (a) There shall at all times be one or more Administrative Trustees hereunder with respect to the Trust Securities. Each
Administrative Trustee shall be either a natural person who is at least 21 years of age or a legal entity that shall act through one or more persons authorized to bind that entity. Each of the individuals identified as an “Administrative
Trustee” in the preamble of this Trust Agreement hereby accepts his or her appointment as such. 
 (b) Except where a requirement for
action by a specific number of Administrative Trustees is expressly set forth in this Trust Agreement, any act required or permitted to be taken by, and any power of the Administrative Trustees may be exercised by, or with the consent of, any one
such Administrative Trustee. Whenever a vacancy in the offices of the Administrative Trustees shall occur, until such vacancy is filled by the appointment of an Administrative Trustee in accordance with Section 8.11, the Administrative
Trustees in office, regardless of their number (and notwithstanding any other provision of this Trust Agreement), shall have all the powers granted to the Administrative Trustees and shall discharge all the duties imposed upon the Administrative
Trustees by this Trust Agreement. 
 Section 8.5. Duties and Responsibilities of the Trustees. 
 (a) The rights, immunities, duties and responsibilities of the Trustees shall be as provided by this Trust Agreement and there shall be no other duties
(including fiduciary duties) or obligations, express or implied, at law or in equity, of the Trustees; provided, however, that if an Event of Default known to the Property Trustee has occurred and is continuing, the Property Trustee
shall, prior to the receipt of directions, if any, from the Holders of at least a Majority in Liquidation Amount of the Preferred Securities, exercise such of the rights and powers vested in it by this Trust Agreement, and use the same degree of
care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. Notwithstanding the foregoing, no provision of this Trust Agreement shall require any of the Trustees
to expend or risk its own funds or otherwise incur any financial liability in the 

  

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performance of any of its duties hereunder, or in the exercise of any of its or their rights or powers, if it or they shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not herein expressly so provided, every provision of this Trust Agreement relating to the conduct or affecting
the liability of or affording protection to the Trustees shall be subject to the provisions of this Section 8.5. Depositor shall be liable for any Administrative Trustee’s negligent action, negligent failure to act, or willful
misconduct, and nothing in this Trust Agreement shall be construed to release the Depositor from such liability. To the extent that, at law or in equity, a Trustee has duties and liabilities relating to the Trust or to the Holders, such Trustee
and/or the Depositor, as applicable, shall not be liable to the Trust or to any Holder for such Trustee’s good faith reliance on the provisions of this Trust Agreement. The provisions of this Trust Agreement, to the extent that they restrict
the duties and liabilities of the Trustees otherwise existing at law or in equity, are agreed by the Depositor and the Holders to replace such other duties and liabilities of the Trustees. 
 (b) All payments made by the Property Trustee or a Paying Agent in respect of the Trust Securities shall be made only from the revenue and proceeds from
the Trust Property and only to the extent that there shall be sufficient revenue or proceeds from the Trust Property to enable the Property Trustee or a Paying Agent to make payments in accordance with the terms hereof. Each Holder, by its
acceptance of a Trust Security, agrees that it will look solely to the revenue and proceeds from the Trust Property to the extent legally available for distribution to it as herein provided and that the Trustees are not personally liable to it for
any amount distributable in respect of any Trust Security or for any other liability in respect of any Trust Security. This Section 8.5(b) does not limit the liability of the Trustees expressly set forth elsewhere in this Trust
Agreement. 
 (c) No provisions of this Trust Agreement shall be construed to relieve the Property Trustee from liability with respect to
matters that are within the authority of the Property Trustee under this Trust Agreement for its own negligent action, negligent failure to act or willful misconduct, except that: 
 (i) the Property Trustee shall not be liable for any error or judgment made in good faith by an authorized officer of the Property
Trustee, unless it shall be proved that the Property Trustee was negligent in ascertaining the pertinent facts; 
 (ii) the
Property 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 at least a Majority in Liquidation Amount of the Preferred Securities relating to the
time, method and place of conducting any proceeding for any remedy available to the Property Trustee hereunder or under the Indenture, or exercising any trust or power conferred upon the Property Trustee under this Trust Agreement; 
 (iii) the Property Trustee’s sole duty with respect to the custody, safe keeping and physical preservation of the Notes and the
Payment Account shall be to deal with such Trust Property in a similar manner as the Property Trustee deals with similar property for its own account, subject to the protections and limitations on liability afforded to the Property Trustee under
this Trust Agreement; 
  

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 (iv) the Property Trustee shall not be liable for any interest on any money received by
it except as it may otherwise agree in writing with the Depositor; and money held by the Property Trustee need not be segregated from other funds held by it except in relation to the Payment Account maintained by the Property Trustee pursuant to
Section 3.1 and except to the extent otherwise required by law; and 
 (v) the Property Trustee shall not be
responsible for monitoring the compliance by the Administrative Trustees or the Depositor with their respective duties under this Trust Agreement, nor shall the Property Trustee be liable for the default or misconduct of any other Trustee or the
Depositor. 
 Section 8.6. Notices of Defaults and Extensions. 
 (a) Within ninety (90) days after the occurrence of a default actually known to the Property Trustee, the Property Trustee shall transmit notice of
such default to the Holders, the Administrative Trustees and the Depositor, unless such default shall have been cured or waived. For the purpose of this Section 8.6, the term “default” means any event that is, or after
notice or lapse of time or both would become, an Event of Default. 
 (b) The Property Trustee shall not be charged with knowledge of any
Event of Default unless either (i) a Responsible Officer of the Property Trustee shall have actual knowledge or (ii) the Property Trustee shall have received written notice thereof from the Depositor, an Administrative Trustee or a Holder.

 (c) The Property Trustee shall notify all Holders of the Preferred Securities of any notice of default received with respect to the Notes.

 Section 8.7. Certain Rights of Property Trustee. 
 Subject to the provisions of Section 8.5: 
 (a) the Property Trustee may
conclusively rely and shall be protected in acting or refraining from acting in good faith and in accordance with the terms hereof upon any resolution, Opinion of Counsel, Officers’ Certificate or other certificate, written representation of an
Administrative Trustee, a Holder or transferee, certificate of auditors or any other resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, appraisal, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) if (i) in performing its duties under this Trust Agreement the Property Trustee is required to decide between alternative courses of action, (ii) in construing any of the provisions of this Trust
Agreement the Property Trustee finds a provision ambiguous or inconsistent with any other provisions contained herein or (iii) the Property Trustee is unsure of the application of any provision of this Trust Agreement, then, except as to any
matter as to which the Holders of the Preferred Securities are entitled to vote under the terms of this Trust Agreement, the Property Trustee shall deliver a notice to the Depositor requesting the Depositor’s written instruction as to the
course of action to 

  

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be taken and the Property Trustee shall take such action, or refrain from taking such action, as the Property Trustee shall be instructed in writing to take,
or to refrain from taking, by the Depositor; provided, that if the Property Trustee does not receive such instructions of the Depositor within ten (10) Business Days after it has delivered such notice or such reasonably shorter period of
time set forth in such notice, the Property Trustee may, but shall be under no duty to, take such action, or refrain from taking such action, as the Property Trustee shall deem advisable and in the best interests of the Holders, in which event the
Property Trustee shall have no liability except for its own negligence, bad faith or willful misconduct; 
 (c) any direction
or act of the Depositor contemplated by this Trust Agreement shall be sufficiently evidenced by an Officers’ Certificate unless otherwise expressly provided herein; 
 (d) any direction or act of an Administrative Trustee contemplated by this Trust Agreement shall be sufficiently evidenced by a
certificate executed by such Administrative Trustee and setting forth such direction or act; 
 (e) the Property Trustee shall
have no duty to see to any recording, filing or registration of any instrument (including any financing or continuation statement or any filing under tax or securities laws) or any re-recording, re-filing or re-registration thereof; 
 (f) the Property Trustee may consult with counsel (which counsel may be counsel to the Property Trustee, the Depositor or any of its
Affiliates, and may include any of its employees) and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon and in
accordance with such advice; the Property Trustee shall have the right at any time to seek instructions concerning the administration of this Trust Agreement from any court of competent jurisdiction; 
 (g) the Property Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Trust Agreement at the
request or direction of any of the Holders pursuant to this Trust Agreement, unless such Holders shall have offered to the Property Trustee reasonable security or indemnity against the costs, expenses (including reasonable attorneys’ fees and
expenses) and liabilities that might be incurred by it in compliance with such request or direction, including reasonable advances as may be requested by the Property Trustee; provided, however, that nothing contained in this
Section 8.7(g) shall be construed to relieve the Property Trustee, upon the occurrence of an Event of Default (of which the Property Trustee has knowledge (as defined in Section 8.6(b) hereof)), of its obligation to exercise the
rights and powers vested in it by this Trust Agreement; provided, further, that nothing contained in this Section 8.7(g) shall prevent the Property Trustee from exercising its rights under Section 8.11 hereof;

 (h) the Property 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, approval, bond, debenture, note or other evidence of indebtedness or other paper or document, unless requested in writing to do so 

  

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by one or more Holders, but the Property Trustee may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the
Property Trustee shall determine to make such inquiry or investigation, it shall be entitled to examine the books, records and premises of the Depositor, personally or by agent or attorney; 
 (i) the Property Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or
through its agents, attorneys, custodians or nominees and the Property Trustee shall not be responsible for any negligence or misconduct on the part of any such agent, attorney, custodian or nominee appointed with due care by it hereunder;

 (j) whenever in the administration of this Trust Agreement the Property Trustee shall deem it desirable to receive
instructions with respect to enforcing any remedy or right hereunder, the Property Trustee (i) may request instructions from the Holders (which instructions may only be given by the Holders of the same proportion in Liquidation Amount of the
Trust Securities as would be entitled to direct the Property Trustee under this Trust Agreement in respect of such remedy, right or action), (ii) may refrain from enforcing such remedy or right or taking such other action until such
instructions are received and (iii) shall be protected in acting in accordance with such instructions; 
 (k) except as
otherwise expressly provided by this Trust Agreement, the Property Trustee shall not be under any obligation to take any action that is discretionary under the provisions of this Trust Agreement; 
 (l) without prejudice to any other rights available to the Property Trustee under applicable law, when the Property Trustee incurs
expenses or renders services in connection with a Bankruptcy Event, such expenses (including legal fees and expenses of its agents and counsel) and the compensation for such services are intended to constitute expenses of administration under any
Bankruptcy Law or law relating to creditors rights generally; 
 (m) whenever in the administration of this Trust Agreement
the Property Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Property Trustee (unless other evidence is herein specifically prescribed) may, in the absence of
bad faith on its part, request and rely on an Officers’ Certificate which, upon receipt of such request, shall be promptly delivered by the Depositor; and 
 (n) in the event the Property Trustee is also acting as Paying Agent, Authenticating Agent (as defined in the Indenture), Securities
Registrar or Calculation Agent hereunder, the rights and protections afforded the Property Trustee pursuant to this Article VIII shall also be afforded to such Paying Agent, Authenticating Agent, Securities Registrar or Calculation Agent.

 No provision of this Trust Agreement shall be deemed to impose any duty or obligation on any Trustee to perform any act or acts or
exercise any right, power, duty or obligation 

  

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conferred or imposed on it, in any jurisdiction in which it shall be illegal, or in which such Person 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. 
 Section 8.8. Delegation
of Power. 
 Any Trustee may, by power of attorney consistent with applicable law, delegate to any other natural person over the age of 21
its, his or her power for the purpose of executing any documents contemplated in Section 2.5. The Trustees shall have power to delegate from time to time to such of their number or to the Depositor the doing of such things and the
execution of such instruments either in the name of the Trust or the names of the Trustees or otherwise as the Trustees may deem expedient, to the extent such delegation is not prohibited by applicable law or contrary to the provisions of this Trust
Agreement. 
 Section 8.9. May Hold Securities. 
 Any Trustee or any other agent of any Trustee or the Trust, in its individual or any other capacity, may become the owner or pledgee of Trust Securities and except as provided in the definition of the term
“Outstanding” in Article I, may otherwise deal with the Trust with the same rights it would have if it were not a Trustee or such other agent. 
 Section 8.10. Compensation; Reimbursement; Indemnity. 
 The Depositor agrees: 
 (a) to pay to the Trustees from time to time such reasonable compensation for all services rendered by them hereunder as may be agreed by
the Depositor and the Trustees from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
 (b) to reimburse the Trustees upon request for all reasonable expenses, disbursements and advances incurred or made by the Trustees in
accordance with any provision of this Trust Agreement (including the reasonable compensation and the expenses and disbursements of their agents and counsel), except any such expense, disbursement or advance as may be attributable to their
negligence, bad faith or willful misconduct and as provided in Section 8.5(a); and 
 (c) to the fullest extent
permitted by applicable law, to indemnify and hold harmless (i) each Trustee (including in its individual capacity), (ii) any Affiliate of any Trustee, (iii) any officer, director, shareholder, employee, representative or agent of any
Trustee or any Affiliate of any Trustee and (iv) any employee or agent of the Trust (referred to herein as an “Indemnified Person”) from and against any loss, damage, liability, tax (other than income, franchise or other taxes
imposed on amounts paid pursuant to Section 8.10(a) or (b) hereof), penalty, expense or claim of any kind or nature whatsoever incurred without negligence, bad faith or willful misconduct on its part, arising out of or in
connection with the acceptance or administration of the Trust hereunder, including the advancement of funds to cover the reasonable costs and expenses of defending itself against any claim or liability in connection with the exercise 

  

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or performance of any of its powers or duties hereunder, and except as provided in Section 8.5(a). 
 The Trust shall have no payment, reimbursement or indemnity obligations to the Trustees under this Section 8.10. The provisions of this
Section 8.10 shall survive the termination of this Trust Agreement and the earlier removal or resignation of any Trustee. 
 No
Trustee may claim any Lien on any Trust Property whether before or after termination of the Trust as a result of any amount due pursuant to this Section 8.10. 
 To the fullest extent permitted by law, in no event shall any Trustee be liable for any indirect, special, punitive or consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits,
even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 In no event shall any
Trustee be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot,
embargo, government action, including any laws, ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Trust Agreement. 
 Section 8.11. Resignation and Removal; Appointment of Successor. 
 (a) No resignation or removal of any Trustee and no appointment of a successor Trustee pursuant to this Article VIII shall become effective until
the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 8.12. 
 (b) A
Trustee may resign at any time by giving written notice thereof to the Depositor and, in the case of the Property Trustee and the Delaware Trustee, to the Holders. 
 (c) Unless an Event of Default shall have occurred and be continuing, the Property Trustee or the Delaware Trustee, or both of them, may be removed (with or without cause) at any time by Act of the Holder of Common
Securities. If an Event of Default shall have occurred and be continuing, the Property Trustee or the Delaware Trustee, or both of them, may be removed (with or without cause) at such time by Act of the Holders of at least a Majority in Liquidation
Amount of the Preferred Securities, delivered to the removed Trustee (in its individual capacity and on behalf of the Trust). An Administrative Trustee may be removed (with or without cause) only by Act of the Holder of the Common Securities at any
time. 
 (d) If any Trustee shall resign, be removed or become incapable of acting as Trustee, or if a vacancy shall occur in the office of
any Trustee for any reason, at a time when no Event of Default shall have occurred and be continuing, the Holder of the Common Securities, by Act of the Holder of the Common Securities, shall promptly appoint a successor Trustee or Trustees, and
such successor Trustee and the retiring Trustee shall comply with the applicable requirements of Section 8.12. If the Property Trustee or the Delaware Trustee shall resign, be removed or become incapable of continuing to act as the
Property Trustee or the Delaware Trustee, as the case may be, at a time when an Event of Default shall have occurred and be 

  

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continuing, the Holders of the Preferred Securities, by Act of the Holders of a Majority in Liquidation Amount of the Preferred Securities, shall promptly
appoint a successor Property Trustee or Delaware Trustee, as applicable, and such successor Property Trustee or Delaware Trustee and the retiring Property Trustee or Delaware Trustee shall comply with the applicable requirements of
Section 8.12. If an Administrative Trustee shall resign, be removed or become incapable of acting as Administrative Trustee, at a time when an Event of Default shall have occurred and be continuing, the Holder of the Common Securities by
Act of the Holder of Common Securities shall promptly appoint a successor Administrative Trustee and such successor Administrative Trustee and the retiring Administrative Trustee shall comply with the applicable requirements of
Section 8.12. If no successor Trustee shall have been so appointed by the Holder of the Common Securities or Holders of the Preferred Securities, as the case may be, and accepted appointment in the manner required by
Section 8.12 within thirty (30) days after the giving of a notice of resignation by a Trustee, the removal of a Trustee, or a Trustee becoming incapable of acting as such Trustee, any Holder who has been a Holder of Preferred
Securities for at least six (6) months may, on behalf of himself, herself or itself and all others similarly situated, and any resigning Trustee may, in each case, at the expense of the Depositor, petition any court of competent jurisdiction
for the appointment of a successor Trustee. 
 (e) The Depositor shall give notice of each resignation and each removal of the Property
Trustee or the Delaware Trustee and each appointment of a successor Property Trustee or Delaware Trustee to all Holders in the manner provided in Section 10.8. Each notice shall include the name of the successor Property Trustee or
Delaware Trustee and the address of its Corporate Trust Office if it is the Property Trustee. 
 (f) Notwithstanding the foregoing or any
other provision of this Trust Agreement, in the event any Administrative Trustee or a Delaware Trustee who is a natural person dies or becomes, in the opinion of the Holder of Common Securities, incompetent or incapacitated, the vacancy created by
such death, incompetence or incapacity may be filled by (i) the unanimous act of the remaining Administrative Trustees if there are at least two (2) of them or (ii) otherwise by the Holder of the Common Securities (with the successor
in each case being a Person who satisfies the eligibility requirement for Administrative Trustees or Delaware Trustee, as the case may be, set forth in Sections 8.3 and 8.4). 
 (g) Upon the appointment of a successor Delaware Trustee, such successor Delaware Trustee shall file a Certificate of Amendment to the Certificate of
Trust with the Secretary of State of the State of Delaware in accordance with Section 3810 of the Delaware Statutory Trust Act. 
 Section 8.12. Acceptance of Appointment by Successor. 
 (a) In case of the appointment hereunder of a successor Trustee,
each successor Trustee shall execute and deliver to the Depositor and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on request of the Trust or any successor Trustee such retiring Trustee shall, upon payment of its
charges, duly assign, transfer and deliver to such successor Trustee all Trust 

  

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Property, all proceeds thereof and money held by such retiring Trustee hereunder with respect to the Trust Securities and the Trust. 
 (b) Upon request of any such successor Trustee, the Trust (or the retiring Trustee if requested by the Depositor) shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers, trusts and duties referred to in the preceding paragraph. 
 (c) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article VIII. 
 Section 8.13. Merger, Conversion, Consolidation or Succession to Business. 
 Any Person into which the Property Trustee or the Delaware Trustee may be merged or converted or with which it may be consolidated, or any Person
resulting from any merger, conversion or consolidation to which such Trustee shall be a party, or any Person succeeding to all or substantially all the corporate trust business of such Trustee, shall be the successor of such Trustee hereunder,
without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, that such Person shall be otherwise qualified and eligible under this Article VIII. 
 Section 8.14. Not Responsible for Recitals or Issuance of Securities. 
 The recitals contained herein and in the Securities Certificates shall be taken as the statements of the Trust and the Depositor, and the Trustees do not
assume any responsibility for their correctness. The Trustees make no representations as to the title to, or value or condition of, the Trust Property or any part thereof, nor as to the validity or sufficiency of this Trust Agreement, the Notes or
the Trust Securities. The Trustees shall not be accountable for the use or application by the Depositor of the proceeds of the Notes. It is expressly understood and agreed by the parties hereto that insofar as any document, agreement or certificate
is executed on behalf of the Trust by any Trustee (i) such document, agreement or certificate is executed and delivered by such Trustee, not in its individual capacity but solely as Trustee under this Trust Agreement in the exercise of the
powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements made on the part of the Trust is made and intended not as representations, warranties, covenants, undertakings and agreements by any
Trustee in its individual capacity but is made and intended for the purpose of binding only the Trust and (iii) under no circumstances shall any Trustee in its individual capacity be personally liable for the payment of any indebtedness or
expenses of the Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Trust Agreement or any other document, agreement or certificate. 
 Section 8.15. Property Trustee May File Proofs of Claim. 
 (a) In case of any Bankruptcy Event (or event that with the passage of time would become a Bankruptcy Event) relative to the Trust or any other obligor upon the Trust Securities or the Trust Property or of such other
obligor or their creditors, the Property Trustee (irrespective of whether any Distributions on the Trust Securities shall then be due and payable and irrespective of whether the Property Trustee shall have made any demand on the Trust for the

  

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payment of any past due Distributions) shall be entitled and empowered, to the fullest extent permitted by law, by intervention in such proceeding or
otherwise: 
 (i) to file and prove a claim for the whole amount of any Distributions owing and unpaid in respect of the Trust
Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Property Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Property
Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding; and 
 (ii) to collect and receive
any monies or other property payable or deliverable on any such claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such proceeding is hereby authorized by each Holder to make such payments to the Property Trustee and, in the event the Property Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Property Trustee first any amount due it for the reasonable compensation, expenses, disbursements and advances of the Property Trustee, its agents and counsel, and any other amounts due the Property Trustee. 

(b) Nothing herein contained shall be deemed to authorize the Property Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or compensation affecting the Trust Securities or the rights of any Holder thereof or to authorize the Property Trustee to vote in respect of the claim of any Holder in any such proceeding.

 Section 8.16. Reports to the Property Trustee. 
 (a) The Depositor and the Administrative Trustees shall deliver to the Property Trustee, not later than sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the
Depositor and not later than ninety (90) days after the end of each fiscal year of the Depositor ending after the date of this Trust Agreement, an Officers’ Certificate (substantially in the form attached hereto as Exhibit F)
covering the preceding fiscal year, stating whether or not to the knowledge of the signers thereof the Depositor and the Trust are in default in the performance or observance of any of the terms, provisions and conditions of this Trust Agreement
(without regard to any period of grace or requirement of notice provided hereunder) and, if the Depositor or the Trust shall be in default, specifying all such defaults and the nature and status thereof of which they have knowledge. 
 (b) The Depositor shall furnish (i) to the Property Trustee; (ii) Kodiak Capital Management Company LLC, 2107 Wilson Boulevard, Suite 400,
Arlington, Virginia 22201, Attention: Robert M. Hurley or such other address as designated by Kodiak Warehouse JPM LLC and (iii) any Owner of the Preferred Securities reasonably identified to the Depositor and the Trust (which identification
may be made either by such Owner or by Kodiak Capital Management Company LLC, a duly completed and executed officer’s financial certificate substantively and substantially in the form attached hereto as Exhibit G, including the financial
statements referenced in such Exhibit, which certificate and financial statements shall be so 

  

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furnished by the Depositor not later than sixty (60) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the
Depositor and not later than ninety (90) days after the end of each fiscal year of the Depositor, or, if applicable, such shorter respective periods as may then be required by the Commission for the filing by the Depositor of Quarterly Reports
on Form 10-Q and Annual Reports on Form 10-K. The delivery requirements under this Section 8.16(b) may be satisfied by compliance with 
 Section
7.3(b) of the Indenture. 
 (c) The Property Trustee may obtain all reports, certificates and information, which it is entitled to obtain
under each of the Operative Documents, and shall deliver to the Purchaser, and a designee of the Purchaser, as identified in writing to the Property Trustee, copies of all such reports, certificates and information within five (5) Business Days
of receipt thereof. 
 ARTICLE IX 
 TERMINATION, LIQUIDATION AND MERGER 
 Section 9.1. Dissolution Upon Expiration Date. 
 Unless earlier dissolved, the Trust shall automatically dissolve on July 30, 2042 (the “Expiration Date”), and the Trust Property
shall be liquidated in accordance with Section 9.4. 
 Section 9.2. Early Termination. 
 The first to occur of any of the following events is an “Early Termination Event”, upon the occurrence of which the Trust shall be
dissolved: 
 (a) the occurrence of a Bankruptcy Event in respect of, or the dissolution or liquidation of, the Depositor, in
its capacity as the Holder of the Common Securities, unless the Depositor shall have transferred the Common Securities as provided by Section 5.11, in which case this provision shall refer instead to any such successor Holder of the
Common Securities; 
 (b) the written direction to the Property Trustee from the Holder of the Common Securities at any time
to dissolve the Trust and, after satisfaction of any liabilities of the Trust as required by applicable law and in accordance with written instructions of the Administrative Trustees, to distribute the Notes to the Holders in exchange for the
Preferred Securities (which direction is optional and wholly within the discretion of the Holder of the Common Securities); 
 (c) the redemption of all of the Preferred Securities in connection with the payment at maturity or redemption of all the Notes; and 
 (d) the entry of an order for dissolution of the Trust by a court of competent jurisdiction. 
  

 55 

 Section 9.3. Termination. 
 (a) The respective obligations and responsibilities of the Trustees and the Trust shall terminate upon the latest to occur of the following: (a) the
distribution by the Property Trustee to the Holders of all amounts required to be distributed hereunder upon the liquidation of the Trust pursuant to Section 9.4, or upon the redemption of all of the Trust Securities pursuant to
Section 4.2; (b) the satisfaction of any expenses owed by the Trust; and (c) the discharge of all administrative duties of the Administrative Trustees, including the performance of any tax reporting obligations with respect to
the Trust or the Holders. 
 (b) As soon as practicable thereafter, and after satisfaction of liabilities to creditors of the Trust as
required by applicable law, including section 3808 of the Delaware Statutory Trust Act, the Delaware Trustee, when notified by the Administrative Trustees in writing of the completion of the winding up of the Trust in accordance with the Delaware
Statutory Trust Act, shall terminate the Trust by filing, at the expense of the Depositor, a certificate of cancellation with the Secretary of State of the State of Delaware. 
 Section 9.4. Liquidation. 
 (a)
If an Early Termination Event specified in Section 9.2(a), (b) or (d) occurs or, upon the Expiration Date, the Trust shall be liquidated by the Property Trustee as expeditiously as the Property Trustee shall
determine to be possible by distributing, after satisfaction of liabilities to creditors of the Trust as provided by applicable law, to each Holder a Like Amount of Notes, subject to Section 9.4(d). Notice of liquidation shall be given
by the Property Trustee not less than thirty (30) nor more than sixty (60) days prior to the Liquidation Date to each Holder of Trust Securities at such Holder’s address appearing in the Securities Register. All such notices of
liquidation shall: 
 (i) state the Liquidation Date; 
 (ii) state that from and after the Liquidation Date, the Trust Securities will no longer be deemed to be Outstanding and (subject to
Section 9.4(d)) any Securities Certificates not surrendered for exchange will be deemed to represent a Like Amount of Notes; and 
 (iii) provide such information with respect to the mechanics by which Holders may exchange Securities Certificates for Notes, or if Section 9.4(d) applies, receive a Liquidation Distribution, as the
Administrative Trustees shall deem appropriate. 
 (b) Except where Section 9.2(c) or 9.4(d) applies, in order to effect
the liquidation of the Trust and distribution of the Notes to the Holders, the Property Trustee, either itself acting as exchange agent or through the appointment of a separate exchange agent, shall establish a record date for such distribution
(which shall not be more than forty-five (45) days prior to the Liquidation Date nor prior to the date on which notice of such liquidation is given to the Holders) and establish such procedures as it shall deem appropriate to effect the
distribution of Notes in exchange for the Outstanding Securities Certificates. 
  

 56 

 (c) Except where Section 9.2(c) or 9.4(d) applies, after the Liquidation Date,
(i) the Trust Securities will no longer be deemed to be Outstanding, (ii) certificates representing a Like Amount of Notes will be issued to Holders of Securities Certificates, upon surrender of such Certificates to the exchange agent for
exchange, (iii) the Depositor shall use its best efforts to have the Notes listed on the New York Stock Exchange or on such other exchange, interdealer quotation system or self-regulatory organization on which the Preferred Securities are then
listed, if any, (iv) Securities Certificates not so surrendered for exchange will be deemed to represent a Like Amount of Notes bearing accrued and unpaid interest in an amount equal to the accumulated and unpaid Distributions on such
Securities Certificates until such certificates are so surrendered (and until such certificates are so surrendered, no payments of interest or principal will be made to Holders of Securities Certificates with respect to such Notes) and (v) all
rights of Holders holding Trust Securities will cease, except the right of such Holders to receive Notes upon surrender of Securities Certificates. 
 (d) Notwithstanding the other provisions of this Section 9.4, if distribution of the Notes in the manner provided herein is determined by the Property Trustee not to be permitted or practical, the Trust Property shall be
liquidated, and the Trust shall be wound up by the Administrative Trustees in such manner as the Administrative Trustees reasonably determine. In such event, Holders will be entitled to receive out of the assets of the Trust available for
distribution to Holders, after satisfaction of liabilities to creditors of the Trust as provided by applicable law, an amount equal to the Liquidation Amount per Trust Security plus accumulated and unpaid Distributions thereon to the date of payment
(such amount being the “Liquidation Distribution”). If, upon any such winding up the Liquidation Distribution can be paid only in part because the Trust has insufficient assets available to pay in full the aggregate Liquidation
Distribution, then, subject to the next succeeding sentence, the amounts payable by the Trust on the Trust Securities shall be paid on a pro rata basis (based upon Liquidation Amounts). The Holder of the Common Securities will be entitled to
receive Liquidation Distributions upon any such winding up pro rata (based upon Liquidation Amounts) with Holders of all Trust Securities, except that, if an Event of Default has occurred and is continuing, the Preferred Securities shall have
a priority over the Common Securities as provided in Section 4.3. 
 Section 9.5. Mergers, Consolidations, Amalgamations
or Replacements of Trust. 
 The Trust may not merge with or into, consolidate, amalgamate, or be replaced by, or convey, transfer or
lease its properties and assets substantially as an entirety to, any Person except pursuant to this Article IX. At the request of the Holders of the Common Securities, without the consent of the Holders of the Preferred Securities, the Trust
may merge with or into, consolidate, amalgamate, or be replaced by or convey, transfer or lease its properties and assets substantially as an entirety to a trust organized as such under the laws of any State; provided, that: 
 (a) such successor entity either (i) expressly assumes all of the obligations of the Trust under this Trust Agreement with respect to
the Preferred Securities or (ii) substitutes for the Preferred Securities other securities having substantially identical terms as the Preferred Securities (such other Securities, the “Successor Securities”) so long as the
Successor Securities have the same priority as the Preferred Securities with respect to distributions and payments upon liquidation, redemption and otherwise; 
  

 57 

 (b) a trustee of such successor entity possessing substantially the same powers and
duties as the Property Trustee is appointed to hold the Notes; 
 (c) if the Preferred Securities or the Notes are rated, such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not cause the Preferred Securities or the Notes (including any Successor Securities) to be downgraded by any nationally recognized statistical rating organization
that then assigns a rating to the Preferred Securities or the Notes; 
 (d) the Preferred Securities are listed, or any
Successor Securities will be listed upon notice of issuance, on any national securities exchange or interdealer quotation system on which the Preferred Securities are then listed, if any; 
 (e) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences
and privileges of the Holders of the Preferred Securities (including any Successor Securities) in any material respect; 
 (f)
such successor entity has a purpose substantially identical to that of the Trust; 
 (g) prior to such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, the Depositor has received an Opinion of Counsel to the effect that (i) such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the
rights, preferences and privileges of the Holders of the Preferred Securities (including any Successor Securities) in any material respect; (ii) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease,
neither the Trust nor such successor entity will be required to register as an “investment company” under the Investment Company Act and (iii) following such merger, consolidation, amalgamation, replacement, conveyance, transfer or
lease, the Trust (or the successor entity) will continue to be classified as a grantor trust for U.S. federal income tax purposes; and 
 (h) the Depositor or its permitted transferee owns all of the common securities of such successor entity. 
 Notwithstanding
the foregoing, the Trust shall not, except with the consent of Holders of all of the Preferred Securities, consolidate, amalgamate, merge with or into, or be replaced by or convey, transfer or lease its properties and assets substantially as an
entirety to any other Person or permit any other entity to consolidate, amalgamate, merge with or into or replace, the Trust if such consolidation, amalgamation, merger, replacement, conveyance, transfer or lease would cause the Trust or the
successor entity to be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes or cause the Notes to be treated as other than indebtedness of the Depositor for United States federal income
tax purposes. 
  

 58 

 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
 Section 10.1. Limitation of Rights of Holders. 
 Except as set forth in Section 9.2, the death, bankruptcy, termination, dissolution or incapacity of any Person having an interest, beneficial
or otherwise, in Trust Securities shall not operate to terminate this Trust Agreement, nor annul, dissolve or terminate the Trust nor entitle the legal representatives or heirs of such Person or any Holder for such Person, to claim an accounting,
take any action or bring any proceeding in any court for a partition or winding up of the arrangements contemplated hereby, nor otherwise affect the rights, obligations and liabilities of the parties hereto or any of them. 
 Section 10.2. Agreed Tax Treatment of Trust and Trust Securities. 
 The parties hereto and, by its acceptance or acquisition of a Trust Security or a beneficial interest therein, the Holder of, and any Person that acquires
a beneficial interest in, such Trust Security intend and agree to treat the Trust as a grantor trust for United States federal, state and local tax purposes, and to treat the Trust Securities (including all payments and proceeds with respect to such
Trust Securities) as undivided beneficial ownership interests in the Trust Property (and payments and proceeds therefrom, respectively) for United States federal, state and local tax purposes and to treat the Notes as indebtedness of the Depositor
for United States federal, state and local tax purposes. The provisions of this Trust Agreement shall be interpreted to further this intention and agreement of the parties. 
 Section 10.3. Amendment. 
 (a)
This Trust Agreement may be amended from time to time by the Property Trustee, the Administrative Trustees and the Holder of all the Common Securities, without the consent of any Holder of the Preferred Securities, (i) to cure any ambiguity,
correct or supplement any provision herein that may be defective or inconsistent with any other provision herein, (ii) to make or amend any other provisions with respect to matters or questions arising under this Trust Agreement, which shall
not be inconsistent with the other provisions of this Trust Agreement, (iii) to modify, eliminate or add to any provisions of this Trust Agreement to such extent as shall be necessary to ensure that the Trust will neither be taxable as a
corporation nor be classified as other than a grantor trust for United States federal income tax purposes at all times that any Trust Securities are Outstanding or to ensure that the Notes are treated as indebtedness of the Depositor for United
States federal income tax purposes, or to ensure that the Trust will not be required to register as an “investment company” under the Investment Company Act or (iv) to add to the covenants, restrictions or obligations of the
Depositor; provided, that in the case of clauses (i), (ii) or (iii), such action shall not adversely affect in any material respect the interests of any Holder. 
 (b) Except as provided in Section 10.3(c), any provision of this Trust Agreement may be amended by the Property Trustee, the Administrative
Trustees and the Holder of all of the Common Securities and with (i) the consent of Holders of at least a Majority in Liquidation 

  

 59 

 
Amount of the Outstanding Preferred Securities and (ii) receipt by the Trustees of an Opinion of Counsel to the effect that such amendment or the
exercise of any power granted to the Trustees in accordance with such amendment will not cause the Trust to be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes or affect the treatment
of the Notes as indebtedness of the Depositor for United States federal income tax purposes or affect the Trust’s exemption from status (or from any requirement to register) as an “investment company” under the Investment Company Act.
In addition to and subject to the foregoing, the Distribution Dates, Redemption Date and Stated Maturity (as defined in the Indenture) with respect to the Preferred Securities or a portion of the Preferred Securities shall be conformed in connection
with any modification of the Interest Payment Date, Redemption Date or Stated Maturity of the Junior Subordinated Notes made by the Company and the Trust at the direction of any Holder of the Preferred Securities or a portion of the Preferred
Securities as set forth in Section 6(n) of the Purchase Agreement. 
 (c) Notwithstanding any other provision of this Trust Agreement,
without the consent of each Holder, this Trust Agreement may not be amended to (i) change the accrual rate, amount, currency or timing of any Distribution on or the Redemption Price of the Trust Securities or otherwise adversely affect the
amount of any Distribution or other payment required to be made in respect of the Trust Securities as of a specified date, except as set forth in the last sentence of Section 10.3(b) above, (ii) restrict or impair the right of a
Holder to institute suit for the enforcement of any such payment on or after such date, (iii) reduce the percentage of aggregate Liquidation Amount of Outstanding Preferred Securities, the consent of whose Holders is required for any such
amendment, or the consent of whose Holders is required for any waiver of compliance with any provision of this Trust Agreement or of defaults hereunder and their consequences provided for in this Trust Agreement; (iv) impair or adversely affect
the rights and interests of the Holders in the Trust Property, or permit the creation of any Lien on any portion of the Trust Property; or (v) modify the definition of “Outstanding,” this Section 10.3(c), Sections
4.1, 4.2, 4.3, 6.10(e) or Article IX. 
 (d) Notwithstanding any other provision of this Trust Agreement, no
Trustee shall enter into or consent to any amendment to this Trust Agreement that would cause the Trust to be taxable as a corporation or to be classified as other than a grantor trust for United States federal income tax purposes or that would
cause the Notes to fail or cease to be treated as indebtedness of the Depositor for United States federal income tax purposes or that would cause the Trust to fail or cease to qualify for the exemption from status (or from any requirement to
register) as an “investment company” under the Investment Company Act. 
 (e) If any amendment to this Trust Agreement is made, the
Administrative Trustees or the Property Trustee shall promptly provide to the Holders, the Depositor and the Note Trustee a copy of such amendment. 
 (f) No Trustee shall be required to enter into any amendment to this Trust Agreement that affects its own rights, duties or immunities under this Trust Agreement. The Trustees shall be entitled to receive an Opinion of Counsel and an
Officers’ Certificate stating that any amendment to this Trust Agreement is in compliance with this Trust Agreement and all conditions precedent herein provided for relating to such action have been met. 
  

 60 

 (g) No amendment or modification to this Trust Agreement that adversely affects in any material respect
the rights, duties, liabilities, indemnities or immunities of the Delaware Trustee hereunder shall be permitted without the prior written consent of the Delaware Trustee. 
 Section 10.4. Separability. 
 If any provision in this Trust Agreement or in the Securities
Certificates 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, and there shall be deemed substituted for the provision at issue a
valid, legal and enforceable provision as similar as possible to the provision at issue. 
 Section 10.5. Governing Law.

 THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE HOLDERS, THE TRUST, THE DEPOSITOR AND THE TRUSTEES WITH RESPECT TO
THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS; PROVIDED, HOWEVER, THAT, TO THE FULLEST EXTENT
PERMITTED BY LAW, THERE SHALL NOT BE APPLICABLE TO THE PARTIES HEREUNDER OR THIS TRUST AGREEMENT ANY PROVISION OF THE LAWS (COMMON OR STATUTORY) OF THE STATE OF DELAWARE PERTAINING TO TRUSTS THAT RELATE TO OR REGULATE, IN A MANNER INCONSISTENT WITH
THE TERMS HEREOF, (A) THE FILING WITH ANY COURT OR GOVERNMENTAL BODY OR AGENCY OF TRUSTEE ACCOUNTS OR SCHEDULES OF TRUSTEE FEES AND CHARGES, (B) AFFIRMATIVE REQUIREMENTS TO POST BONDS FOR TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST,
(C) THE NECESSITY FOR OBTAINING COURT OR OTHER GOVERNMENTAL APPROVAL CONCERNING THE ACQUISITION, HOLDING OR DISPOSITION OF REAL OR PERSONAL PROPERTY, (D) FEES OR OTHER SUMS PAYABLE TO TRUSTEES, OFFICERS, AGENTS OR EMPLOYEES OF A TRUST,
(E) THE ALLOCATION OF RECEIPTS AND EXPENDITURES TO INCOME OR PRINCIPAL, (F) RESTRICTIONS OR LIMITATIONS ON THE PERMISSIBLE NATURE, AMOUNT OR CONCENTRATION OF TRUST INVESTMENTS OR REQUIREMENTS RELATING TO THE TITLING, STORAGE OR OTHER
MANNER OF HOLDING OR INVESTING TRUST ASSETS OR (G) THE ESTABLISHMENT OF FIDUCIARY OR OTHER STANDARDS OF RESPONSIBILITY OR LIMITATIONS ON THE ACTS OR POWERS OF TRUSTEES THAT ARE INCONSISTENT WITH THE LIMITATIONS OR AUTHORITIES AND POWERS OF THE
TRUSTEES HEREUNDER AS SET FORTH OR REFERENCED IN THIS AGREEMENT. SECTION 3540 OF TITLE 12 OF THE DELAWARE CODE SHALL NOT APPLY TO THE TRUST. The parties hereto hereby consent to (i) the non-exclusive jurisdiction of the courts of the State of
Delaware and any Federal court sitting in Wilmington, Delaware, and (ii) service of process by certified mail. The foregoing shall not preclude any party from bringing an action in any other jurisdiction or from serving process in any other
legal means. 
  

 61 

 Section 10.6. Successors. 
 This Trust Agreement shall be binding upon and shall inure to the benefit of any successor to the Depositor, the Trust and any Trustee, including any
successor by operation of law. Except in connection with a transaction involving the Depositor that is permitted under Article VIII of the Indenture and pursuant to which the assignee agrees in writing to perform the Depositor’s
obligations hereunder, the Depositor shall not assign its obligations hereunder. 
 Section 10.7. Headings. 
 The Article and Section headings are for convenience only and shall not affect the construction of this Trust Agreement. 
 Section 10.8. Reports, Notices and Demands. 
 (a) Any report, notice, demand or other communication that by any provision of this Trust Agreement
is required or permitted to be given or served to or upon any Holder or the Depositor may be given or served in writing delivered in person, or by reputable, overnight courier, by telecopy or by deposit thereof, first-class postage prepaid, in the
United States mail, addressed, (a) in the case of a Holder of Preferred Securities, to such Holder as such Holder’s name and address may appear on the Securities Register; and (b) in the case of the Holder of all the Common Securities
or the Depositor, to Alesco Financial Inc., 2929 Arch Street, 17th floor, Philadelphia, PA 19104, Attention: John
Longino, or to such other address as may be specified in a written notice by the Holder of all the Common Securities or the Depositor, as the case may be, to the Property Trustee. Such report, notice, demand or other communication to or upon a
Holder or the Depositor shall be deemed to have been given when received in person, within one (1) Business Day following delivery by overnight courier, when telecopied with receipt confirmed, or within three (3) Business Days following
delivery by mail, 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. 
 (b) Any notice, demand or other communication that by any provision of this Trust Agreement is
required or permitted to be given or served to or upon the Property Trustee, the Delaware Trustee, the Administrative Trustees or the Trust shall be given in writing by deposit thereof, first-class postage prepaid, in the U.S. mail, personal
delivery or facsimile transmission, addressed to such Person as follows: (i) with respect to the Property Trustee to Wells Fargo Bank, N.A., 919 North Market Street, Suite 1600, Wilmington, Delaware 19801, facsimile no. (302) 575-2006,
Attention: Corporate Trust Department – Alesco Capital Trust I, (ii) with respect to the Delaware Trustee, to Wells Fargo Delaware Trust Company, 919 North Market Street, Suite 1600, Wilmington, Delaware 19801, facsimile no.
(302) 575-2006, Attention: Corporate Trust Department – Alesco Capital Trust I; (iii) with respect to the Administrative Trustees, to them at the address above for notices to the Depositor, marked “Attention: Administrative
Trustees of Alesco Capital Trust I”, and (iv) with respect to the Trust, to its principal executive office specified in Section 2.2, with a copy to the Property Trustee. Such notice, demand or other communication to or upon the
Trust, the Property Trustee or the 

  

 62 

 
Administrative Trustees shall be deemed to have been sufficiently given or made only upon actual receipt of the writing by the Trust, the Property Trustee or
the Administrative Trustees. 
 Section 10.9. Agreement Not to Petition. 
 Each of the Trustees and the Depositor agree for the benefit of the Holders that, until at least one (1) year and one (1) day after the Trust
has been terminated in accordance with Article IX, they shall not file, or join in the filing of, a petition against the Trust under any Bankruptcy Law or otherwise join in the commencement of any proceeding against the Trust under any
Bankruptcy Law. If the Depositor takes action in violation of this Section 10.9, the Property Trustee agrees, for the benefit of Holders, that at the expense of the Depositor, it shall file an answer with the applicable bankruptcy court
or otherwise properly contest the filing of such petition by the Depositor against the Trust or the commencement of such action and raise the defense that the Depositor has agreed in writing not to take such action and should be estopped and
precluded therefrom and such other defenses, if any, as counsel for the Property Trustee or the Trust may assert. 
 Section 10.10.
Counterparts. 
 This Trust Agreement 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. 
 [signature page follows] 
  

 63 

 IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Trust Agreement as of the
day and year first above written. 
  

													
	 	 	 	 	 	 	 	 	 ALESCO FINANCIAL INC.,
 as
Depositor
	 	 
							
		 		 		 		 	By:	 	  
	 	
							
		 		 		 		 	Name:	 	  
	 	
							
		 		 		 		 	Title:	 	  
	 	
					
	WELLS FARGO BANK, N.A., not in its individual capacity but solely as Property Trustee	 		 		 	WELLS FARGO DELAWARE TRUST COMPANY, not in its individual capacity, but solely as Delaware Trustee	 	
							
	By:	 	  
	 		 		 	By:	 	  
	 	
							
	Name:	 	  
	 		 		 	Name:	 	  
	 	
							
	Title:	 	  
	 		 		 	Title:	 	  
	 	
					
	  
	 	,	 		 	  
	 	,
	as Administrative Trustee	 		 		 	as Administrative Trustee	 	
							
	Name:	 	John Longino	 		 		 	Name:	 	Christian Carr	 	

  

 64 

 Exhibit A 
 FORM OF 
 CERTIFICATE OF TRUST 
 OF 
 ALESCO CAPITAL TRUST I 
 This Certificate of Trust of Alesco Capital Trust I (the “Trust”) is being duly executed and filed on behalf of the Trust by the undersigned, as trustee, to form a statutory trust under the Delaware
Statutory Trust Act (12 Del. C. §3801 et seq.) (the “Act”). 
 1. Name. The name of the
statutory trust formed by this Certificate of Trust is: “Alesco Capital Trust I.” 
 2. Delaware Trustee. The name and
business address of the trustee of the Trust with its principal place of business in the State of Delaware are Wells Fargo Delaware Trust Company, 919 North Market Street, Suite 1600, Wilmington, Delaware 19801. 
 3. Effective Date. This Certificate of Trust shall be effective upon its filing with the Secretary of State of the State of Delaware. 

IN WITNESS WHEREOF, the undersigned trustee has executed this Certificate of Trust in accordance with Section 3811(a)(1) of the Act. 

 

			
	WELLS FARGO DELAWARE TRUST
COMPANY, not in its individual capacity, but solely
as Delaware Trustee
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 A-1 

 Exhibit B 
 [FORM OF COMMON SECURITIES CERTIFICATE] 
 THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE 

SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR 
 ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE OFFERED, 
 SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN 
 EXEMPTION FROM REGISTRATION. THIS CERTIFICATE IS NOT 
 TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND 
 SECTION 5.11 OF THE TRUST
AGREEMENT 
  

			
	 Certificate Number
	  	Number of Common Securities
		
	 C-
	  	

 Certificate Evidencing Common Securities 
 of 
 ALESCO CAPITAL TRUST I 
 Common Securities 
 (liquidation amount $1,000 per Common Security) 
 Alesco Capital Trust I, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that Alesco Financial Inc., a
Maryland real estate investment trust (the “Holder”), is the registered owner of 870 common securities of the Trust representing undivided common beneficial interests in the assets of the Trust and designated the “Alesco
Capital Trust I Common Securities (liquidation amount $1,000 per Common Security)” (the “Common Securities”). Except in accordance with Section 5.11 of the Trust Agreement (as defined below), the Common Securities are not
transferable and, to the fullest extent permitted by law, any attempted transfer hereof other than in accordance therewith shall be void. The designations, rights, privileges, restrictions, preferences and other terms and conditions of the Common
Securities are set forth in, and this certificate and the Common Securities represented hereby are issued and shall in all respects be subject to the terms and conditions of, the Amended and Restated Trust Agreement of the Trust, dated as of
June 25, 2007, as the same may be amended from time to time (the “Trust Agreement”), among Alesco Financial Inc., as Depositor, Wells Fargo Bank, N.A., as Property Trustee, Wells Fargo Delaware Trust Company, as Delaware
Trustee, and the Administrative Trustees named therein. The Trust will furnish a copy of the Trust Agreement to the Holder without charge upon written request to the Trust at the Corporate Trust Office. 
  

 B-1 

 Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the benefits thereunder.

 This Common Securities Certificate shall be governed by and construed in accordance with the laws of the State of Delaware. 
 All capitalized terms used but not defined in this Common Securities Certificate are used with the meanings specified in the Trust Agreement, including the Schedule and
Exhibits thereto. 
 IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed on behalf of the Trust this Common Securities
Certificate this [DAY] day of [MONTH], 2007. 
  

			
	ALESCO FINANCIAL INC.
		
	By:	 	  

	Name:	 	  

		 	Administrative Trustee

  

 B-2 

 Exhibit C 
 [FORM OF PREFERRED SECURITIES CERTIFICATE] 
 “[IF THIS SECURITY IS A GLOBAL SECURITY INSERT: THIS
PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS PREFERRED SECURITY IS
EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER OF THIS
PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. 
 UNLESS THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO ALESCO CAPITAL TRUST I OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY PREFERRED SECURITY ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST THEREIN MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT. 
 THE HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES MAY
BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST, OR (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED PURCHASER” (AS DEFINED 

  

 C-1 

 
IN SECTION 2(a)(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED), AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 THE PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN
AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $250,000. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS THAN $250,000 AND
MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW, ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED SECURITIES FOR ANY
PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF THE LIQUIDATION AMOUNT OF OR DISTRIBUTIONS ON SUCH PREFERRED SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH PREFERRED
SECURITIES. 
 THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF AN AMENDED AND RESTATED TRUST AGREEMENT OF ALESCO
CAPITAL TRUST I DATED AS OF                     , 2007 (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE GENERAL PARTNER OF
DEPOSITOR) AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE PROVISIONS OF SUCH TRUST AGREEMENT. THE HOLDER OF THIS PREFERRED SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE
HEREOF OR THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR SIMILAR LAW (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY
REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER OR HOLDER OF THE PREFERRED SECURITIES OR ANY INTEREST
THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON
ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE. 
  

 C-2 

			
	 Certificate Number
	  	             Preferred Securities
		  	             Aggregate Liquidation Amount

 CUSIP NO. 
  

 Certificate Evidencing Preferred Securities 
 of 
 ALESCO CAPITAL TRUST I 
 Preferred Securities 
 (liquidation amount $1,000 per Preferred Security) 
 Alesco Capital Trust I, a statutory trust created under the laws of the State of Delaware (the “Trust”), hereby certifies that
                    , a
                     (the “Holder”), is the registered owner of 28,125 Preferred Securities [IF THE PREFERRED SECURITY IS
A GLOBAL SECURITY, THEN INSERT: or such other number of Preferred Securities represented hereby as may be set forth in the records of the Securities Registrar hereinafter referred to in accordance with the Trust Agreement (as defined below)] of
the Trust representing an undivided preferred beneficial interest in the assets of the Trust and designated the “Alesco Capital Trust I Preferred Securities, (liquidation amount $1,000 per Preferred Security)” (the “Preferred
Securities”). Subject to the terms and conditions of the Trust Agreement (as defined below), the Preferred Securities are transferable on the books and records of the Trust, in person or by a duly authorized attorney, upon surrender of this
certificate duly endorsed and in proper form for transfer as provided in Section 5.7 of the Trust Agreement. The designations, rights, privileges, restrictions, preferences and other terms and conditions of the Preferred Securities are set
forth in, and this certificate and the Preferred Securities represented hereby are issued and shall in all respects be subject to the terms and conditions of, the Amended and Restated Trust Agreement of the Trust, dated as of June 25, 2007, as
the same may be amended from time to time (the “Trust Agreement”), among Alesco Financial Inc., as Depositor, Wells Fargo Bank, N.A., as Property Trustee, Wells Fargo Delaware Trust Company, as Delaware Trustee, and the
Administrative Trustees named therein. The Trust will furnish a copy of the Trust Agreement to the Holder without charge upon written request to the Property Trustee at its Corporate Trust Office. 
 Upon receipt of this certificate, the Holder is bound by the Trust Agreement and is entitled to the benefits thereunder. 
 This Preferred Securities Certificate shall be governed by and construed in accordance with the laws of the State of Delaware. 
 All capitalized terms used but not defined in this Preferred Securities Certificate are used with the meanings specified in the Trust Agreement, including the Schedule
and Exhibits thereto. 
  

 C-3 

 IN WITNESS WHEREOF, one of the Administrative Trustees of the Trust has executed on behalf of the Trust this Preferred
Securities Certificate this [DAY] day of [MONTH], 2007. 
  

			
	ALESCO FINANCIAL INC.
		
	By:	 	  

	Name:	 	  

		 	Administrative Trustee

 This is one of the Preferred Securities referred to in the within-mentioned Trust Agreement.

 Dated: 
  

			
	WELLS FARGO BANK, N.A., not in its individual
capacity, but solely as Property Trustee
		
	By:	 	  

		 	Authorized Signatory

  

 C-4 

 [FORM OF REVERSE OF SECURITY] 
 The Trust promises to pay Distributions from June 25, 2007, or from the most recent Distribution Date to which Distributions have been paid or duly
provided for, quarterly in arrears on January 30, April 30, July 30 and October 30 of each year, commencing on July 30, 2007, at a fixed rate equal to 9.495% per annum through the interest payment date in
[month] 20[__] and thereafter at a variable rate equal to LIBOR plus 4% per annum of the Liquidation Amount of the Preferred Securities represented by this Preferred Securities Certificate, together with any Additional Interest Amounts, in
respect of such period. 
 Distributions on the Trust Securities shall be made by the Paying Agent from the Payment Account and shall be
payable on each Distribution Date only to the extent that the Trust has funds then on hand and available in the Payment Account for the payment of such Distributions. 
 Distributions on the Securities must be paid on the dates payable to the extent that the Trust has funds available for the payment of such Distributions in the Payment Account of the Trust. The Trust’s funds
available for Distribution to the Holders of the Preferred Securities will be limited to payments received from the Depositor. 
 During an
Event of Default, the Depositor shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Depositor’s Equity Interests, (ii) vote in favor of
or permit or otherwise allow any of its Subsidiaries to declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to or otherwise retire, any preferred Equity Interests of such
Subsidiaries or other Equity Interests entitling the holders thereof to a stated rate of return (for the avoidance of doubt, whether such preferred Equity Interests are perpetual or otherwise), or (iii) make any payment of principal of or any
interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Depositor that rank pari passu in all respects with or junior in interest to the Notes (other than (a) repurchases, redemptions or other
acquisitions of shares of Equity Interests of the Depositor in connection with (1) any employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors or consultants,
(2) a dividend reinvestment or Equity Interests purchase plan or (3) the issuance of Equity Interests of the Depositor (or securities convertible into or exercisable for such Equity Interests) as consideration in an acquisition transaction
entered into prior to the applicable Event of Default, (b) as a result of an exchange, conversion, reclassification or combination of any class or series of the Depositor’s Equity Interests (or any Equity Interests of a Subsidiary (as
defined in the Indenture) of the Depositor) for, of or with any class or series of the Depositor’s Equity Interests or of any class or series of the Depositor’s indebtedness for any class or series of the Depositor’s Equity Interests,
(c) the purchase of fractional interests in shares of the Depositor’s Equity Interests pursuant to the conversion or exchange provisions of such Equity Interests or the security being converted or exchanged, (d) any declaration of a
dividend in connection with any Rights Plan (as defined in the Indenture), the issuance of rights, Equity Interests or other property under any Rights Plan, or the redemption or repurchase of rights pursuant thereto or (e) any dividend in the
form of Equity Interests, warrants, options or other rights where the dividend Equity Interest or the Equity Interest issuable upon exercise of such warrants, options or other rights is the same interest as 

  

 C-5 

 
that on which the dividend is being paid or ranks pari passu with or junior to such Equity Interest). 
 On each Note Redemption Date, on the stated maturity (or any date of principal repayment upon early maturity) of the Notes and on each other date on (or in respect of)
which any principal on the Notes is repaid, the Trust will be required to redeem a Like Amount of Trust Securities at the Redemption Price. Under the Indenture, the Notes may be redeemed by the Depositor on any Interest Payment Date, at the
Depositor’s option, on or after [DATE], [YEAR] in whole at any time or in part from time to time at the Optional Note Redemption Price of the principal amount thereof or the redeemed portion thereof, as applicable. The Notes may also be
redeemed by the Depositor, at its option, at any time, in whole but not in part, upon the occurrence and during the continuance of an Investment Company Event or a Tax Event at the Special Note Redemption Price. In addition, the Notes must be
redeemed pursuant to the terms of the Indenture in whole at the Mandatory Note Redemption Price, upon receipt of a Change of Control Election. 
 The Trust Securities redeemed on each Redemption Date shall be redeemed at the Redemption Price with the proceeds from the contemporaneous redemption or payment at maturity of Notes. Redemptions of the Trust Securities (or portion thereof)
shall be made and the Redemption Price shall be payable on each Redemption Date only to the extent that the Trust has funds then on hand and available in the Payment Account for the payment of such Redemption Price. 
 Payments of Distributions (including any Additional Interest Amounts), the Redemption Price, Liquidation Amount or any other amounts in respect of the
Preferred Securities shall be made by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing at least ten (10) Business Days prior to the date for payment by the Person
entitled thereto unless proper written transfer instructions have not been received by the relevant record date, in which case such payments shall be made by check mailed to the address of such Person as such address shall appear in the Security
Register. If any Preferred Securities are held by a Depositary, such Distributions shall be made to the Depositary in immediately available funds. 
 The indebtedness evidenced by the Notes is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Debt (as defined in the Indenture), and this Security is issued
subject to the provisions of the Indenture with respect thereto. 
  

 C-6 

 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned assigns and transfers this Preferred Securities Certificate to: 
 (Insert assignee’s social
security or tax identification number) 
 (Insert address and zip code of assignee) 
 and irrevocably appoints 
 agent to transfer this Preferred Securities
Certificate on the books of the Trust. The agent may substitute another to act for him or her. 
 Date:
                     
  

			
	Signature:	 	  

		 	(Sign exactly as your name appears on the other side of this Preferred Securities Certificate)

 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 signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15. 
  

 C-7 

 Exhibit D 
 JUNIOR SUBORDINATED INDENTURE 
 [to be attached] 
  

 D-1 

 Exhibit E 
 FORM OF TRANSFEREE CERTIFICATE 
 TO BE EXECUTED BY TRANSFEREES 
 [DATE], 2007 
 Wells Fargo Bank, N.A. 
 919 North Market Street 
 Suite 1600 
 Wilmington, Delaware 19801 
 Attention: Corporate Trust Department –
ALESCO CAPITAL TRUST I 
 Alesco Financial Inc. 
 ALESCO CAPITAL
TRUST I 
 [ADDRESS] 
  

	 	Re:	Purchase of $28,125,000 stated liquidation amount of Preferred Securities (the “Preferred Securities”) of Alesco Capital Trust I 

 Ladies and Gentlemen: 
 In connection with our purchase of
the Preferred Securities we confirm that: 
 1. We understand that the Preferred Securities (the “Preferred Securities”) of
Alesco Capital Trust I (the “Trust”) of Alesco Financial Inc. (the “Company”) executed in connection therewith) and the Junior Subordinated Notes due 2037 of the Company (the “Subordinated Notes”)
(the entire amount of the Trust’s outstanding Preferred Securities and the Subordinated Notes together being referred to herein as the “Offered Securities”), have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), and may not be offered or sold except as permitted in the following sentence. We agree on our own behalf and on behalf of any investor account for which we are purchasing the Offered Securities that, if we
decide to offer, sell or otherwise transfer any such Offered Securities, (i) such offer, sale or transfer will be made only (a) to the Trust, (b) to a person we reasonably believe is a “qualified purchaser” (a
“QP”) (as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended (the “Investment Company Act”)) and in compliance with the Securities Act. We understand that the certificates for any
Offered Security that we receive will bear a legend substantially to the effect of the foregoing. 
 2. We are a “qualified
purchaser” within the meaning of Section 2(a)(51) of the Investment Company Act and are purchasing for our own account or for the account of such a “qualified purchaser,” and we have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our investment in the Offered Securities, and we and any account for which we are acting are each able to bear the economic risks of our or its investment. 
  

 E-1 

 3. We are acquiring the Offered Securities purchased by us for our own account (or for one or more
accounts as to each of which we exercise sole investment discretion and have authority to make, and do make, the statements contained in this letter) and not with a view to any distribution of the Offered Securities, subject, nevertheless, to the
understanding that the disposition of our property will at all times be and remain within our control. 
 4. In the event that we purchase
any Preferred Securities or any Subordinated Notes, we will acquire such Preferred Securities having an aggregate stated liquidation amount of not less than $250,000 or such Subordinated Notes having an aggregate principal amount not less than
$250,000, for our own account and for each separate account for which we are acting. 
 5. We acknowledge that we are not a fiduciary of
(i) an employee benefit plan, individual retirement account or other plan or arrangement subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal
Revenue Code of 1986, as amended (the “Code”), or similar law (each a “Plan”); or (ii) an entity whose underlying assets include “plan assets” by reason of any Plan’s investment in the entity,
and are not purchasing any of the Offered Securities on behalf of or with “plan assets” by reason of any Plan’s investment in the entity. 
 6. We acknowledge that the Trust and the Company and others will rely upon the truth and accuracy of the foregoing acknowledgments, representations, warranties and agreements and agree that if any of the
acknowledgments, representations, warranties and agreements deemed to have been made by our purchase of any of the Offered Securities are no longer accurate, we shall promptly notify the Company. If we are acquiring any Offered Securities as a
fiduciary or agent for one or more investor accounts, we represent that we have sole discretion with respect to each such investor account and that we have full power to make the foregoing acknowledgments, representations and agreement on behalf of
each such investor account. 
  

			
	  

	(Name of Purchaser)
		
	By:	 	  

	Name:	 	  

	Date:	 	  

 Upon transfer, the Preferred Securities (having a stated liquidation amount of
$                    ) would be registered in the name of the new beneficial owner as follows. 
  

 E-2 

			
	Name:	 	  

	Address:	 	  

		 	  

  

			
	Taxpayer ID Number:	 	  

  

 E-3 

 Exhibit F 
 FORM OF OFFICERS’ CERTIFICATE UNDER SECTION 8.16(a) 
 Pursuant to Section 8.16(a) of the Amended
and Restated Trust Agreement, dated as of June 25, 2007 (as modified, supplemented or amended from time to time, the “Trust Agreement”), among Alesco Financial Inc., as the Depositor, Wells Fargo Bank, N.A., as the Property
Trustee, Wells Fargo Delaware Trust Company, as the Delaware Trustee, and the Administrative Trustees named therein, relating to Alesco Capital Trust I, a Delaware statutory trust (the “Trust”), each of the undersigned hereby
certifies that, to the knowledge of the undersigned, neither the Depositor nor the Trust is in default in the performance or observance of any of the terms, provisions and conditions of the Trust Agreement (without regard to any period of grace or
requirement of notice provided under the Trust Agreement) for the fiscal period ending on [DATE], 2007 [, except as follows: SPECIFY EACH SUCH DEFAULT AND THE NATURE AND STATUS THEREOF]. 
 Capitalized terms used herein, and not otherwise defined herein, have the respective meanings assigned thereto in the Trust Agreement. 
 [signatures pages follow] 
  

 F-1 

 IN WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of [DATE],
[YEAR]. 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	[Must be the Chief Executive Officer, the President, or an Executive Vice President] of Alesco Financial Inc.
		
	By:	 	  

	Name:	 	  

	Title:	 	[Must be the Chief Financial Officer, the Treasurer, or an Assistant Treasurer] of Alesco Financial Inc.
		
	By:	 	  

	Name:	 	  

	Title:	 	Administrative Trustee of [Alesco Capital Trust I]
		
	By:	 	  

	Name:	 	  

	Title:	 	Administrative Trustee of [Alesco Capital Trust I]
		
	By:	 	  

	Name:	 	  

	Title:	 	Administrative Trustee of [Alesco Capital Trust I]

  

 F-2 

 Exhibit G 
 FORM OF OFFICER’S FINANCIAL CERTIFICATE 
 The undersigned, the [CHAIRMAN/VICE CHAIRMAN/CHIEF
EXECUTIVE OFFICER/PRESIDENT/ VICE PRESIDENT/CHIEF FINANCIAL OFFICER/ TREASURER/ASSISTANT TREASURER], of Alesco Financial Inc. (the “Company”), hereby certifies pursuant to Section 8.16(b) of the Amended and Restated Trust
Agreement, dated as of June 25, 2007 (the “Trust Agreement”), among the Company, Wells Fargo Bank, N.A., as property trustee, Wells Fargo Delaware Trust Company, as Delaware trustee, and the administrative trustees named
therein, that, as of [DATE], [YEAR], the Company had the following ratios and balances: 
 As of [QUARTERLY/ANNUAL FINANCIAL DATE],
[YEAR] 
  

					
		
	 Total Debt
	  	$	—  	 
		
	 Total Subordinated Debt
	  	$	—  	 
		
	 Net Worth
	  	$	—  	 
		
	 Total Capitalization (greater of book or market)
	  	$	—  	 
		
	 Subordinated Debt / Net Worth
	  	 	—  	%
		
	 Total Debt / Total Capitalization
	  	 	—  	%

 [FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial statements (including the balance
sheet, income statement and statement of cash flows, and notes thereto, together with the report of the independent accountants thereon) of the Company and its consolidated subsidiaries for the three (3) years ended [DATE], [YEAR].]

 [FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and consolidating financial statements (including the balance sheet and
income statement) of the Company and its consolidated subsidiaries for the fiscal quarter ended [DATE], [YEAR].] 
 The financial
statements fairly present in all material respects, in accordance with U.S. generally accepted accounting principles (“GAAP”), the financial position of the Company and its consolidated subsidiaries, and the results of operations
and changes in financial condition as of the date, and for the [QUARTER] [YEAR] ended [DATE], [YEAR], and such financial statements have been prepared in accordance with GAAP consistently applied throughout the period involved
(expect as otherwise noted therein). 
  

 G-1 

 IN WITNESS WHEREOF, the undersigned has executed this Officer’s Financial Certificate as of this
[DATE] day of [MONTH], [YEAR]. 
  

			
	ALESCO FINANCIAL INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		 	Alesco Financial Inc.
		 	[ADDRESS]
		 	[TELEPHONE NUMBER]

  

 G-2 

 Schedule A 
 DETERMINATION OF LIBOR 
 With respect to the Trust Securities, the London interbank offered rate
(“LIBOR”) shall be determined by the Calculation Agent in accordance with the following provisions (in each case rounded to the nearest .000001%): 
 (1) On the second LIBOR Business Day (as defined below) prior to a Distribution Date (except with respect to the first interest payment period, such date shall be occurring after the expiration of the Fixed Rate
Period (each such day, a “LIBOR Determination Date”), LIBOR for any given security shall for the following interest payment period equal the rate, as obtained by the Calculation Agent from Bloomberg Financial Markets Commodities
News, for three (3)-month Eurodollar deposits that appears on Reuters Screen LIBOR01 (as defined in the International Swaps and Derivatives Association, Inc. 2000 Interest Rate and Currency Exchange Definitions as the same may be amended from time
to time), or such other page as may replace such Page LIBOR01 (as any such replacement may be amended from time to time), as of 10:00 A.M. (New York City time) on such LIBOR Determination Date. 
 (2) If, on any LIBOR Determination Date, such rate does not appear on Reuters Screen LIBOR01 or such other page as may replace such Page LIBOR01, the
Calculation Agent shall determine the arithmetic mean of the offered quotations of the Reference Banks (as defined below) to leading banks in the London interbank market for three (3)-month Eurodollar deposits in an amount determined by the
Calculation Agent by reference to requests for quotations as of approximately 10:00 A.M. (New York City time) on the LIBOR Determination Date made by the Calculation Agent to the Reference Banks. If, on any LIBOR Determination Date, at least two
(2) of the Reference Banks provide such quotations, LIBOR shall equal such arithmetic mean of such quotations. If, on any LIBOR Determination Date, only one or none of the Reference Banks provide such quotations, LIBOR shall be deemed to be the
arithmetic mean of the offered quotations that leading banks in the City of New York selected by the Calculation Agent are quoting on the relevant LIBOR Determination Date for three (3)-month Eurodollar deposits in an amount determined by the
Calculation Agent by reference to the principal London offices of leading banks in the London interbank market; provided, that, if the Calculation Agent is required but is unable to determine a rate in accordance with at least one of the
procedures provided above, or adequate and fair means do not exist for ascertaining the applicable interest rate on the basis set forth above (due to changes arising in the interbank Eurocurrency market or otherwise), then the Securities shall not
bear interest in respect of LIBOR but shall instead bear interest with reference to a floating rate equal to the Base Rate (as defined below). 
 (3) As used herein: “Reference Banks” means four (4) major banks in the London interbank market selected by the Calculation Agent; “LIBOR Business Day” means a day on which commercial banks are open
for business (including dealings in foreign exchange and foreign currency deposits) in London; the “Base Rate” on any day shall equal the greater of the arithmetic mean of (i) the “prime rate” for dollar denominated
loans quoted by leading banks in the City of New York selected by the Calculation Agent and (ii) the Federal Funds Rate (as defined below) plus 0.50% per annum; and the “Federal Funds Rate” on any day equals the rate per
annum equal to the weighted average (rounded upwards to the nearest 0.000001) of the rate on overnight federal funds transactions with members of the Federal Reserve System only 

  

 Schedule A-1 

 
arranged by federal funds brokers, as published as of such day by the Federal Reserve Bank of New York. 
  

 Schedule A-2Form of Amended and Restated PCS Services Agreement

 Note: Material has been omitted from this Form of Amended and Restated PCS Services Agreement pursuant to a request
for confidential treatment and such material has been filed separately with the Securities and Exchange Commission. Material omitted has been replaced with an asterisk. 

 FORM OF 
 AMENDED AND RESTATED PCS SERVICES AGREEMENT 
 BETWEEN 
 SPRINT SPECTRUM L.P. 
 AND

 VIRGIN MOBILE USA, LLC 

 AMENDED AND RESTATED PCS SERVICES AGREEMENT 
 This Amended and Restated PCS Services Agreement (this “Agreement”) dated as of
                    , 2007 (“Effective Date”) is entered into by and between Sprint Spectrum L.P., a Delaware limited
partnership (“Sprint PCS”) and Virgin Mobile USA, LLC, a Delaware limited liability company (“VMU”) and amends and restates in its entirety the PCS Services Agreement dated (the “Original Agreement”) as of
October 4, 2001 by and between Sprint PCS and VMU. VMU and Sprint PCS are sometimes referred to individually as a “Party” and collectively as the “Parties.” 
 Background 
 A. Sprint PCS owns broadband personal communications services licenses and
is affiliated with other PCS license owners or PCS service providers. Sprint PCS and its Sprint PCS Service Provider Affiliates (defined below) own and operate PCS networks using CDMA technology to provide services (collectively, “Sprint PCS
Network”) in the United States, the U.S. Virgin Islands and Puerto Rico (collectively, the “Territory”). 
 B. Subject to this Agreement, VMU
desires to purchase PCS Service (as defined below) from Sprint PCS and market and sell Virgin Mobile Service (as defined below) in the Markets to End Users, and Sprint PCS desires to sell to VMU PCS Service. 
 NOW, THEREFORE, and in consideration of the above premises and the mutual promises set forth in this Agreement, Sprint PCS and VMU agree as follows: 
 Agreement 
 1. Definitions 

“3G Data” means data wireless communications using CDMA technology, specifically 1Xrtt and EVDO packet switched systems. 
 “3G Data Transport” means the transmission of data packets using CDMA technology, specifically 1xRTT and EVDO packet switched systems. 
 “Abbreviated Dialing Codes” or “ADC” have the meaning assigned to the term in Section 2.14. 
 “Affiliate” means with respect to any Person, any other Person that, either directly or indirectly, through one or more agents, nominees,
intermediaries, trusts, or other arrangements, whether formal or informal, controls, is controlled by or is under common control with that Person. The term “control” shall mean the possession, directly or indirectly, of the power to
either (i) vote more than fifty percent (50%) of the securities having ordinary voting power for the election of directors (or comparable positions in the case of partnerships and limited liability companies), or (ii) direct or cause
the direction of the management and policies of such Person whether by contract or otherwise (for the avoidance of doubt, consent rights do not constitute control for the purpose of this definition). Notwithstanding the foregoing, for purposes of
this Agreement, (x) Sprint PCS and Virgin Enterprises Limited (VEL), and their respective Affiliates, shall not be considered Affiliates of each other, and (y) Sprint PCS and VEL, and their respective Affiliates, shall not be considered
Affiliates of VMU. 
  

 2 

 “Agreement” means this PCS Services Agreement and all of its Schedules, Exhibits, Attachments and
Addenda, as amended from time to time. 
 “Airtime Pricing Matrix” has the meaning assigned to the term in Schedule 1.0. 
 “Breaching Party” has the meaning assigned to the term in Section 15.1. 
 “Change of Control Event” means: 
 (i) A transaction of merger, reorganization,
consolidation or similar form of business transaction directly involving VMU or indirectly involving VMU through one or more intermediaries unless, immediately following such transaction, more than 50% of the voting power of the then outstanding
voting stock or other equities of VMU resulting from consummation of such transaction (including, without limitation, any parent or ultimate parent corporation of such Person that as a result of such transaction owns directly or indirectly the VMU
and all or substantially all of the VMU’s assets) is held by the existing VMU equityholders; or 
 (ii) VMU, directly or indirectly,
sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of its assets (including all of its End User accounts) to another Person as expressly permitted under this Agreement (including, but not limited to,
assignment to an Affiliate pursuant to Section 20 below); or 
 (iii) The acquisition of control of VMU by a Person or group of Persons.
The term “control” shall mean the possession, directly or indirectly, of the power to either (i) vote more than fifty percent (50%) of the securities having ordinary voting power for the election of directors (or comparable
positions in the case of partnerships and limited liability companies), or (ii) direct or cause the direction of the management and policies of such Person whether by contract or otherwise (for the avoidance of doubt, consent rights do not
constitute control for the purpose of this definition); or 
 (iv) Individuals who constitute the Board of Directors of VMU (the
“Incumbent Directors”) cease for any reason to constitute at least a majority of the Board of Directors of VMU, provided that any person becoming a director subsequent to the Effective Date, whose election or nomination for election is
either (A) contemplated by a written agreement among equityholders of VMU on the Effective Date or (B) was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of
the proxy statement of the VMU in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director
of the VMU as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall be deemed to
be an Incumbent Director; or 
  

 3 

 (v) VMU liquidation or dissolution. 
 “Churn” means the ratio of the Net Number of End Users who disconnect or are disconnected from
the Virgin Mobile Service during the period being measured to the Weighted Average Number of End Users during that period, divided by the number of months during the period being measured. For purposes of the definition of Churn, the “Net
Number” of End Users who disconnect or are disconnected from the Virgin Mobile Service is calculated as the total number of End Users who disconnect or are disconnected from the Virgin Mobile Service less adjustments for (i) End Users
who replace one Virgin Mobile handset with another, (ii) End Users who return Virgin Mobile handsets to retailers, (iii) End Users who reactivate Virgin Mobile Service and (iv) End Users who fraudulently activate the Virgin Mobile
Service. For purposes of the definition of Churn herein, the “Weighted Average Number” of End Users is the sum of the average number of End Users for each day during the period being measured divided by the number of days in that period.
Churn includes (i) End Users on pay-by-the-minute plans who are automatically disconnected from the Virgin Mobile Service when they have not replenished, or “Topped-Up,” their accounts for 150 days (except for such End Users who may
continue to use the Virgin Mobile Service on a pay-by-the minute basis for one year following such End Users’ replenishment of $90 or more within any 72-hour period), (ii) End Users on pay-by-the-month plans who are automatically
disconnected if they have not paid their monthly recurring charge for 150 days (except for such monthly End Users who replenish their account for less than the amount of their monthly recurring charge and, according to the terms of VMU’s
monthly service plans, may continue to use the Virgin Mobile Service on a pay-by-the-minute basis), (iii) End Users who voluntarily disconnect from Virgin Mobile Service prior to the period ending 150 days after replenishing their account or
paying their monthly recurring charge, (iv) End Users who are automatically disconnected on the 31st day
following VMU’s suspension of such End Users’ accounts at their request for reasons including, without limitation, lost/stolen handset or fraudulent activity, whose accounts remain suspended for the duration of such 30-day period, and
(v) End Users who are disconnected by VMU for other business reasons.
 “Content” means information, applications and other data
provided to End Users for or to enhance their personal use of Mobile Voice and Data Services. 
 “Consumer Price Index” (the
“CPI”) means the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average for All Items, as published by the United States Department of Labor Bureau of Labor Statistics, or any successor organization. 
 “Core Network” means the wireless voice and data service platform that provides connectivity and transmission via the Sprint PCS Network necessary to
connect mobile phones or other devices to other phones or devices on mobile or land-based networks, including all interfaces to such Core Network regardless of the source of such interface, as the same may be modified by Sprint PCS from time to
time. Examples of Core Network elements as of the Effective Date are described on Schedule 2.0 hereto which may be updated from time to time by the Parties. 
  

 4 

 “Core Network Services” are the transmission services provided by the Core Network. For purposes of
clarification and unless otherwise mutually agreed to in writing by the Parties, “Core Network Services” does not include iDEN services, Broadband Radio Spectrum (“BRS”) wireless service operating on 2.5 GHz spectrum , Wireless
Fidelity (“Wi-Fi”) wireless services or any other service operating on networks that are not the Sprint PCS Network. 
 “Cost of
Capital” means Sprint PCS’ then-current cost of capital used uniformly in the operation and financial planning and analysis of its standard businesses, as reasonably determined by the Chief Financial Officer of Sprint PCS, consistent
with industry practice, Sprint PCS’ capital structure and its relative cost of debt and equity. 
 “Cost of Service” means Sprint
PCS’ cost of providing services, plus the Cost of Capital plus a Margin, all described in more detail in, and calculated in accordance with, the Cost of Service Formula. 
 “Cost of Service Formula” or “Formula” means the proprietary formula (attached hereto as Schedules 1.0, 1.1 and 1.2) that describes the elements that comprise the Cost of Service and
the calculations used to determine the Cost of Service. 
 “Customer” means any Person, other than VMU, purchasing from Sprint PCS
(i) PCS service, including any prepaid service, or (ii) any other services offered for sale by Sprint PCS. 
 “Customized
Services” are Core Network Services and non-Core Network Services (including Non-Network Services) that VMU requests from Sprint PCS and Sprint PCS agrees to customize, develop and deliver for VMU. 
 “Customized Service Costs” means all costs related to the provision and use of a Customized Service developed for use by VMU, plus the Cost of Capital
plus a Margin. Customized Service Costs are distinguished from, incremental to and not duplicative of any of the operating costs included in the Cost of Service for the underlying PCS Services and related Implementation Costs for which VMU is also
liable. 
 “Default” has the meaning assigned to the term in Section 15.1. 
 “Designated Officers” has the meaning assigned to the term in Section 17. 
 “Direct Strategic Competitor” means (i) with respect to Sprint PCS, any Person that together with its Affiliates (x) is primarily engaged, directly or indirectly, in the business of
providing any Telecommunication Services or (y) derives at least $1 billion in annual revenues (based on the latest available audited financial statements at the time the relevant transfer or change of control occurs, which threshold will be
adjusted as of the first day of each calendar year based on changes in the CPI 
  

 5 

 from the Effective Date) from the provision of any Telecommunications Services and (ii) with respect to VMU any
Person, other than Sprint PCS, that has a share of the Target Market, as measured by the number of subscribers, equal to or exceeding 10%. 
 “Dispute” has the meaning assigned to the term in Section 17. 
 “Due Date” has the meaning assigned to the
term in Section 7.4. 
 “Effective Date” has the meaning assigned to the term in the Preamble. 
 “End User” means any Person purchasing Virgin Mobile Service from VMU utilizing services provided by Sprint PCS under this Agreement, including end
users of Persons added under this Agreement pursuant to an acquisition described in Section 2.17 below that are transitioned to this Agreement as described in and subject to Section 2.17. 
 “End User Lifetime Value” has the meaning set forth in the Cost of Service Formula. 
 “Escalation Request” has the meaning assigned to the term in Section 17. 
 “ESN”
means the unique electronic equipment number for each handset provided in a form reasonably satisfactory to Sprint PCS. 
 “Facilities”
means the telecommunications switching equipment, cell site transceiver equipment, connecting circuits, software and other equipment installed, maintained, expanded, modified or replaced by Sprint PCS to render PCS Service within a Market

 “FCC” means the Federal Communications Commission or any successor agency. 
 “Governmental Authority” means any nation or government, or any state or other political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including the FCC. 
 “Handset Proprietary Information” means (i) Sprint PCS’ preferred
roaming list, as changed by Sprint PCS, in its sole discretion, from time to time, (ii) software implementing Sprint PCS’ handset user interface design features and structure, developed and installed in handsets with or for Sprint PCS by
manufacturers under agreements preserving Sprint PCS’ proprietary rights therein, including changes, updates, modifications and enhancements to the software which may be effected from time to time during the term of this Agreement by Sprint
PCS, its agents or vendors; and (iii) software effecting compatibility between handsets and the Facilities and any ancillary systems, developed and installed in handsets with or for Sprint PCS by manufacturers under agreements preserving Sprint
PCS’ proprietary rights therein, including changes, updates, modifications and enhancements to the software which may be effected from time to time during the term of this Agreement by Sprint PCS, its agents or vendors, which software is
embodied in firmware or read-only memory (programmable or otherwise) or both, associated with handsets which may be delivered to VMU by or on behalf of a manufacturer authorized under the Operations Manual. 
  

 6 

 “Implementation Costs” are all costs incurred by Sprint PCS (internal resources and third party charges)
to launch any service or platform (including any Customized Service), including analysis, planning, development, implementation, and testing, plus the Cost of Capital plus a Margin. No costs will be included as both Implementation Costs and as part
of any Cost of Service or as a Customized Service Cost. Implementation Costs may include costs incurred before the Effective Date of this Agreement. 
 “Indemnitee” has the meaning assigned to the term in Section 14.1. 
 “Indemnitor” has the meaning assigned
to the term in Section 14.1. 
 “Initial Launch” means the date two months following the date on which VMU first activates End Users
under this Agreement, not including VMU employee activations and product test activations. 
 “Integrated Action Team” has the meaning
assigned to the term in Section 17. 
 “Intellectual Property Rights” has the meaning assigned to the term in Section 18.2.

 “Involuntary Bankruptcy” means the entering of an order for relief or approving a petition for relief or reorganization; any petition
seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or other similar relief under any present or future bankruptcy, insolvency or similar statute, law or regulation; the filing of any petition against a
party, which petition is not dismissed within 90 days; or without the consent or acquiescence of the other party, the entering of an order appointing a trustee, custodian, receiver or liquidator of a party or of all or any substantial part of the
property of the party, which order is not dismissed within 90 days. 
 “License” means a PCS license issued by the FCC to Sprint PCS or a
Sprint PCS Service Provider Affiliate. 
 “Margin” has the meaning set forth in the Cost of Service Formula. 
 “Market” means the Sprint PCS Markets and the Sprint PCS Service Provider Affiliate Markets in which PCS Service is made available to VMU under this
Agreement. 
 “MIN” means a mobile identification telephone number assigned to a handset by Sprint PCS under Section 6.4. 

“Mobile Voice and Data Services” means voice and data radio communications service including both one-way and two-way radio communications services
conducted through a wireless network carried on or between mobile stations and/or receivers and land stations, and between mobile stations and/or receivers communicating among themselves and the services made available to End Users over mobile
receivers. Mobile Voice and Data Services does not include Content. Mobile Voice and Data Services includes Core Network Services and non-Core Network Services provided by means of Network-Connected Elements. 
  

 7 

 “MOU” has the meaning assigned to the term in the Cost of Service Formula. 
 “Nationwide” means completion of delivery under a plan by Sprint PCS to cover substantially all major Markets within Sprint PCS’ coverage area
within a twelve (12) month period. 
 “Network-Connected Elements” are: (i) adjunct Sprint PCS Network service platforms that
provide services that are a fundamental component of Sprint PCS’ service offerings; and (ii) those elements that directly connect to Sprint PCS Network adjunct service platforms; and (iii) those platforms which connect applications
and services to the Core Network. Examples of Network Connected Elements are listed in Schedule 2.1 hereto, which list will be updated from time to time by Sprint PCS as fundamental components of Sprint PCS’ service offerings, those elements
that directly connect to Sprint PCS Network adjunct service platforms and those platforms which connect applications and services to the Core Network change. Network-Connected Elements include all interfaces to such elements, regardless of the
source of such interface. 
 “Network-Connected Services” are services provided through Network-Connected Elements. 
 “Non-Network Services” are those services (and related services and resources) that are not Core Network Services, not Network-Connected Services, and
not Sprint PCS Web Services. Examples of Non-Network Services include Content, VMU-procured or VMU-developed services that may be functionally similar to Sprint PCS Web Services, logistics support, customer care, billing and invoicing, and other
support services. 
 “Offered Accounts” has the meaning assigned to the term in Section 16.3(a). 
 “Operations Manual” means the operations manual described in Section 6.6 below. 
 “Party” or “Parties” have the meaning assigned to the terms in the Preamble. 
 “Pay-As-You-Go Service” has the meaning assigned to the term in Section 2.13(b). 
 “PCS” means all radio
communications that encompass mobile and ancillary fixed communication as set forth in 47 C.F.R. Part 24.5 and which as of the Effective Date utilize frequencies in the 1.9 gigahertz band. 
 “PCS Service” means the PCS service provided to VMU by Sprint PCS pursuant to this Agreement. PCS Service does not include Roaming, long distance
service and other similar services. 
 “Person” shall mean any individual, corporation, limited liability company, partnership, firm, joint
venture, association, trust, joint stock company, unincorporated organization or other entity. 
  

 8 

 “Prepaid Service” means any Mobile Voice and Data Service (i) that is paid for prior to its
availability for use, and (ii) that once used (and not replenished) is discontinued, and (iii) for which charges to the end user’s account are per minute or other appropriate unitized measure of usage and (iv) for which no
“payment due” invoice is delivered to the end user. 
 “Reorganization” has the meaning assigned to the term in Section 2.16.

 “Resolution Request” has the meaning assigned to the term in Section 17. 
 “Roaming” means any wireless telecommunications service that does not use the Sprint PCS Network. 
 “Sprint PCS” has the meaning assigned to the term in the Preamble. 
 “Sprint PCS Data Service” means: (i) short messaging service or SMS; (ii) multimedia messaging or MMS; (iii) browsing the Internet using a browser-enabled, data-compatible handset; or (iv) other Sprint
PCS provided data connectivity described in this Agreement. 
 “Sprint PCS Indemnitee” has the meaning assigned to the term in
Section 14.2. 
 “Sprint PCS Market” means the area or areas set forth in Schedule 4.0(a), as updated from time to time under the terms
and provisions of this Agreement, in which PCS Service is made available to VMU under this Agreement by Sprint PCS. 
 “Sprint PCS Mobile Data
Portal” means the Sprint PCS Facilities and functionality used to: (i) record, store and provide access to links (URLs) to Sprint PCS Content, VMU Data Content and Applications and other Content; (ii) present a menu of links to an
End Users’ device display in a manner compatible with such device’s user interface; and (iii) deliver Content to the End User’s mobile telecommunications device display. 
 “Sprint PCS Mobile Voice Portal” means the Sprint PCS Facilities and functionality using voice commands to: (i) record, store and provide access to
links (URLs) to Sprint PCS Content, VMU Data Content and Applications and other Content; (ii) present a menu of links to an End User in a manner compatible with such device’s user interface; and (iii) deliver Content to the End
User’s mobile telecommunications device. 
 “Sprint PCS Network” has the meaning assigned to the term in the Recitals. 
 “Sprint PCS Service Provider Affiliate” means an entity that provides mobile wireless telecommunications products and services under the “Sprint
PCS” or “Sprint Spectrum” service marks or any other service marks subsequently used by Sprint PCS pursuant to an arrangement with Sprint PCS under which the Sprint PCS Service Provider Affiliate constructs wireless network coverage
and performs operational functions in defined geographic areas under a relationship with Sprint PCS. 
  

 9 

 “Sprint PCS Service Provider Affiliate Market” means the area or areas set forth in Schedule 4.0(b), as
updated from time to time under the terms and provisions of this Agreement, in which PCS Service is made available to VMU under this Agreement by a Sprint PCS Service Provider Affiliate. 
 “Sprint PCS Web Services” means services provided over the Sprint PCS designated web services platform and accessed in accordance with Sprint PCS’ uniformly applied standards and policies for
access and use. Sprint PCS Web Services include the services listed in Schedule 2.2 hereto and similar future services implemented by Sprint PCS. Except as otherwise provided in this Agreement, Sprint PCS Web Services will be accessed via the
applicable Sprint PCS Mobile Data Portal or Sprint PCS Mobile Voice Portal. 
 “Subscribers” means the number of End Users who activate
Virgin Mobile Service through a particular point in time or during a specified period in the Markets but excluding End Users who Churn. For purposes of this definition, each MIN and ESN pair activated by an End User shall count as a separate End
User. 
 “Target Market” shall mean the provision of Prepaid Service to the market segment of the Territory’s population comprised of
individuals up to and including thirty (30) years old. 
 “Taxes” means all taxes, including federal, state or local sales, use,
excise, gross receipts or other taxes or tax-like fees imposed on or with respect to PCS Service, excepting only taxes on the income of Sprint PCS, unless expressly provided otherwise in this Agreement. 
 “Telecommunications Services” means services commonly associated with telecommunications, including without limitation, (i) wireline local and long
distance telecommunications services, (ii) voice and data telecommunications services, (iii) Internet transport, hosting, security and managing services, (iv) wireless services and (v) any other telecommunications services that
could reasonably be confused with VMU’s products and services. 
 “Territory” has the meaning assigned to the term in the Recitals.

 “Transfer” has the meaning assigned to the term in Section 16.3(d). 
 “Transfer Notice” has the meaning assigned to the term in Section 16.3(a). 
 “Transfer
Price” has the meaning assigned to the term in Section 16.3(d). 
 “Transition Period” has the meaning described in
Section 15.3. 
 “Virgin Mobile Service” means the PCS service provided by VMU to its End Users using the PCS Service provided to VMU
by Sprint PCS under this Agreement. 
 “Voluntary Bankruptcy” means the inability of a party generally to pay its debts as the debts become
due, or an admission in writing by a party of its inability to pay its debts generally or a 

  

 10 

 
general assignment by a party for the benefit of creditors; the filing of any petition or answer by a party seeking to adjudicate itself a bankrupt or
insolvent, or seeking any liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition for itself or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking, consenting to, or acquiescing in the entry of an order for relief or appointment of a receiver trustee, custodian or other similar official for itself or substantially all of its property; or any action taken by a party to authorize any of
the actions set forth above. 
 “VMU” has the meaning assigned to the term in the Preamble. 
 “VMU Data Content and Applications” has the meaning assigned to the term in Section 6.1.6(a). 
 “VMU Indemnitee” has the meaning assigned to the term in Section 14.3. 
 “VTLA” means that certain Amended and Restated Virgin Trademark License Agreement, dated [    ], 2007, between Virgin Enterprises Limited and VMU. 
 “Work Order” means the resulting document showing agreement of the Parties with respect a project in the Work Order Process. 
 “Work Order Process” means the process more fully described in the Operations Manual under which VMU requests Customized Services or any network or
system interfaces and pursuant to which VMU implements any modification or upgrades of its Network-Connected Services or Non-Network Services that are delivered over or otherwise interface with the Sprint PCS Network or other Sprint PCS Facilities
or systems. 
 2. VMU Relationship 
 2.1. General 
 Pursuant to the terms and provisions of this Agreement, Sprint PCS will provide and sell PCS Service to VMU, and VMU
will purchase PCS Service from Sprint PCS. The PCS Services to be provided to VMU are described below. 
 2.2. Core Network Services

 2.2.1. Core Network Services 
 Sprint PCS will sell to VMU and VMU will purchase from Sprint PCS Core Network Services. All Core Network Services that are available on Sprint PCS’ Core Network as of the Effective Date will be made available to
VMU. 
 2.2.2. New Core Network Services 
 Subject to applicable law and Sprint PCS agreements with third parties described in the attached Schedule 3.0, Sprint PCS will make new Core Network Services available to VMU when such new 

  

 11 

 
Core Network Services are made generally commercially available Nationwide to Sprint PCS Customers. If, however, Sprint PCS promotes or establishes written
marketing plans to promote the new Core Network Service as a service unique to Sprint PCS (and its Sprint PCS Service Provider Affiliates) or as something that differentiates the service offerings of Sprint PCS (and its Sprint PCS Service Provider
Affiliates) from those of its competitors, Sprint PCS will not make such new Core Network Services available to VMU until three (3) months following the date on which such new services are first marketed and made generally commercially
available for sale to Sprint PCS Customers Nationwide. The availability of such new Core Network Services to VMU is subject to technical, resource and logistical constraints of Sprint PCS. Sprint PCS will use commercially reasonable efforts to
resolve such constraints. VMU will be charged for such new Core Network Services as described in Section 7. 
 2.2.3. Customized Core
Network Services 
 VMU may request modifications or additions to the Core Network Services under the procedure described in Section 2.5. 

2.3. Network-Connected Services 
 2.3.1. Existing Network-Connected Services 
 Sprint PCS will sell to VMU Network-Connected Services as described in this subsection.
Network-Connected Services that are available using Sprint PCS’ Network-Connected Elements as of the Effective Date will be made available to VMU. 
 2.3.2. New Network-Connected Services 
 Subject to applicable law and Sprint PCS’ agreements with third parties
identified in the attached Schedule 3.0, Sprint PCS will make new Network-Connected Services available to VMU when such services are made generally commercially available Nationwide to Sprint PCS Customers. If, however, Sprint PCS promotes or
establishes written marketing plans to promote the new service as a service unique to Sprint PCS (and its Sprint PCS Service Provider Affiliates) or as something that differentiates the service offerings of Sprint PCS (and its Sprint PCS Service
Provider Affiliates) from those of its competitors, Sprint PCS will not make such new Network-Connected Services available to VMU until three months following the date on which such new services are first marketed and made generally commercially
available for sale to Sprint PCS Customers Nationwide. The availability of such new Network-Connected Services to VMU is subject to technical, resource and logistical constraints of Sprint PCS. Sprint PCS will use commercially reasonable efforts to
resolve such constraints. 
 2.3.3. Customized Network-Connected Services 
 VMU may request modifications or additions to the Network-Connected Elements and Network-Connected Services under the procedure described in Section 2.5. VMU will be
charged for such Customized Services as set forth in Section 7. 
  

 12 

 2.4. Non-Network Services and Sprint PCS Web Services 
 If the Parties agree, Sprint PCS may provide VMU with Non-Network Services and Sprint PCS Web Services. The prices, terms and conditions applicable to VMU’s purchase
of Non-Network Services and Sprint PCS Web Services from Sprint PCS must be set forth in writing signed by authorized representatives of Sprint PCS and VMU. If the Parties agree, VMU may provide Sprint PCS with Non-Network Services. The prices,
terms and conditions applicable to Sprint PCS’ purchase of Non-Network Services from VMU must be set forth in writing signed by authorized representatives of Sprint PCS and VMU. 
 2.4.1. Non-Network Services 
 VMU may develop or
purchase Non-Network Services from third parties (including VMU-procured or VMU-developed services that may be functionally similar to Sprint PCS Web Services) and is under no obligation to purchase such services from Sprint PCS. Sprint PCS is not
required to provide Non-Network Services to VMU. If VMU enters into an agreement with a Person other than Sprint PCS to provide Non-Network Services, the intellectual property rights for such services will be as specified in such agreement. Subject
to technical, resource and logistical constraints of Sprint PCS, VMU and Sprint PCS acknowledge that they may be required to work together to implement Non-Network Services prior to commercial availability. Sprint PCS will use commercially
reasonable efforts to resolve any such constraints. The pricing in Section 7 does not apply to Non-Network Services. 
 2.4.2. Sprint
PCS Web Services 
 (a) Generally. Subject to applicable laws, regulations and Sprint PCS’ existing agreements with third parties
described in the attached Schedule 3.0, Sprint PCS will provide Sprint PCS Web Services under the provisions for Non-Network Services described in this Section 2.4. 
 (b) Location. Sprint PCS will use reasonable efforts to provide Location Services (as defined in Schedule 2.2) to VMU on commercially reasonable terms when such information is provided on a commercial basis to Sprint
PCS consumer Customers generally. If Sprint PCS provides such information, VMU must adhere to all Sprint PCS policies regarding privacy. 
 (c) Sprint PCS Web Service Standards. If the parties agree as set forth in the first paragraph of Section 2.4 above, Sprint PCS will provide Sprint PCS Web Services to VMU through Sprint PCS’ designated Sprint PCS Web Services
platform. The provision of such services will be subject to Sprint PCS’ uniformly applied standards for use of and access to Sprint PCS Web Services, which will include, among other things, required application programming interfaces, required
methods of enabling or disabling Sprint PCS Web Services and limitations (including possible prohibition) on the use, without Sprint PCS’ prior written consent, of (i) services that access the Sprint PCS Web Services or (ii) data
stored as a result of use of Sprint PCS Web Services. 
 2.5. Customized Services 
 VMU may request that Sprint PCS provide it with a service that Sprint PCS is not providing to VMU. The Parties must complete the Work Order Process for any Customized
Service. The Work Order must be in the form, and include the applicable requirements, as more fully described in the Operations Manual. 
  

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 2.5.1. Customized Core Network Services 
 (a) If the requested Customized Service is within the then-existing capabilities of the Core Network, Sprint PCS will provide the Customized Service to
VMU. VMU will pay for its use of the Customized Service pursuant to the applicable Cost of Service described in Section 7. VMU will also pay any Customized Service Costs. 
 (b) If the requested Customized Service is not within the existing capabilities of the Core Network, then Sprint PCS may elect, in its discretion, to
develop the requested Customized Service for VMU. If Sprint PCS elects to develop the Customized Service the costs will be borne as follows: 
 (i) Sprint PCS may initially indicate its desire to use the Customized Service and share the Implementation Costs. In such event Sprint PCS and VMU will split the Implementation Costs evenly. Thereafter, VMU’s price for Customized
Service usage will be based on the applicable Cost of Service described in Section 7 and any Customized Service Costs. Jointly financed Customized Services will be available simultaneously to both Parties. 
 (ii) If Sprint PCS declines to indicate a desire to use the Customized Services, Sprint PCS may use the Customized Service for testing purposes but may
not provide it to Customers. VMU will pay all Implementation Costs related to the Customized Service. VMU will also pay all Customized Service Costs. 
 (iii) Sprint PCS may, in its sole discretion, later elect to use a Customized Service that it initially did not indicate a desire to use. If VMU has paid the Implementation Costs related to a Customized Service under
subsection (ii) above that Sprint PCS later elects to use, the allocation of Implementation Costs for such Customized Service will be split evenly as described in subsection (i) above and Sprint PCS will credit or refund VMU the
appropriate amount of Implementation Costs previously paid by VMU. Thereafter, VMU’s cost for Customized Service usage will be based on the applicable Cost of Service, described in Section 7.  
 (c) VMU may not obtain Core Network Services or Customized Service related to Core Network Services except from Sprint PCS. 
 2.5.2. Customized Network-Connected Services 
 (a) If the requested Customized Service is within the existing capabilities of the then existing Network-Connected Elements, Sprint PCS will provide the Customized Service to VMU. VMU will pay for its use of the Customized Service pursuant
to the applicable Cost of Service described in Section 7. VMU will also pay any applicable Customized Service Costs. 
  

 14 

 (b) If the requested Network-Connected Customized Service is not within the capabilities of the
then-existing Network-Connected Elements, then Sprint PCS may elect, in its discretion, to develop the requested Customized Service for VMU. If Sprint PCS elects to develop the Customized Service hereunder, costs will be as set forth in subsections
(i) through (iii) of Section 2.5.1(b). 
 (c) If (A) Sprint PCS does not elect to develop the Customized Service and VMU
desires to purchase and operate a third party Network-Connected Element in order to provide such Network-Connected Service; or (B) if VMU prefers to purchase and operate a third party Network-Connected Element in order to provide a
Network-Connected Service; then VMU must first provide Sprint PCS with detailed written notice indicating that a reputable third party is willing to sell or provide to VMU the Network-Connected Element on terms that are more favorable (in the
aggregate, including cost and functionality) for the resulting Network-Connected Service than those Sprint PCS is able or willing to provide. Such written notice must include the identity of the third party and all terms and conditions applicable to
the third party proposal. If Sprint PCS receives written notice of the third party proposal and declines to adjust its proposal to match the material terms of the third party proposal and Sprint PCS approves VMU’s use of the third
party-provided Network-Connected Element, then VMU may procure and use the third-party provided Network-Connected Element. Sprint PCS’ approval will not be unreasonably withheld and will be based on its reasonable examination and analysis of
factors that may have a material adverse effect upon Sprint PCS’ present or future business (including, but not limited to, current and planned future network compatibility, functionality and capacity, network operations, network development,
lack of capability to interface or implement and network prioritization processes). If approved, Sprint PCS will provide an appropriate interface for VMU’s Network-Connected Element subject to resolution of technical, resource and logistical
constraints in accordance with Sprint PCS internal processes. Sprint PCS’ interface development will constitute a Customized Service under this Section 2.5. Sprint PCS may elect to use the resulting Network-Connected Service (either
initially or subsequently) as described under Section 2.5.1(b) above. 
 2.5.3 Agreed Upon Customized Services 
 Subject to mutual agreement on the terms and provisions of the applicable Work Orders, the Parties will work towards developing initial Work Orders (through the Work
Order Process) in the following areas: integration of a prepaid billing platform, short messaging services, WAP browser services, back-office IT system integration, initial handset certification of two handsets, and rating reconciliation.

 2.6. Implementation of Services 
 VMU may request that Sprint PCS provide it with an interface or otherwise take action to accommodate its operations as permitted hereunder. In such event, VMU will provide Sprint PCS with written notification through the Work Order Process
that it desires such interface or other accommodation. The Work Order will be in the form, and include the applicable requirements, as more fully described in the Operations Manual. VMU will reimburse Sprint PCS (pursuant to Section 7) for the
Implementation Costs related to establishing VMU’s ability to use services (including Customized Service) provided under this Agreement. 
  

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 2.7. Exclusivity/Preferred Providers 
 2.7.1. VMU Exclusivity to Sprint PCS 
 Except as
specifically provided in this Agreement with respect to Non-Network Services, Network-Connected Services and as specifically set forth in Section 15.3, Sprint PCS, its Affiliates and the Sprint PCS Service Provider Affiliates will be VMU’s
exclusive provider of Mobile Voice and Data Services in the Territory. 
 2.7.2. Sprint’s Preferred Provider Status 

For so long as Sprint PCS (or an Affiliate) owns in excess of 10% of all outstanding equity interests in VMU, Sprint PCS (and its Affiliates) will be VMU’s
preferred provider of all Telecommunications Services (other than Mobile Voice and Data Services that are subject to the exclusivity provisions of Section 2.7.1 above) , and as such will provide such Telecommunications Services so long as
(x) Sprint PCS or its Affiliates have the capability to provide the requested service and (y) the terms under which Sprint PCS or its Affiliate would provide such service are at least as favorable as the terms VMU could obtain from third
parties for substantially the same service, for substantially the same duration and for substantially the same volume of services being requested by VMU. 
 2.8. Relationship to Pricing 
 The provisions of Section 2.7 and the pricing provisions of Section 7
are not severable, because pricing is premised on the exclusivity and preferred provider status set forth in Section 2.7. 
 2.9.
Remedies for Violations 
 The limitations in Section 11 do not apply to breaches of Section 2.7. 
 2.10. Control of Facilities 
 No provision of
this Agreement will be construed as vesting in VMU any control whatsoever in any facilities and operations of Sprint PCS, including the Facilities, or the operations of any Sprint PCS Affiliate, Sprint PCS Service Provider Affiliate or contractual
third party of Sprint PCS. VMU will not represent itself as the holder of an FCC, federal or state certified license to operate PCS systems by reason of this Agreement. 
 2.11. Sale to Resellers 
 VMU will not, directly or indirectly (a) solicit, entertain or accept any offer
of any reseller or (b) enter into any agreement or other arrangement, to sell or otherwise offer a reseller PCS Service, unless otherwise required by applicable law. PCS Service purchased by a reseller from VMU or its End Users does not
contribute to VMU’s Subscribers. The prohibitions set forth in this Section 2.11 include licensing or other similar arrangements whereby the wireless services provided under this Agreement are marketed and sold under the branding of a
Person that is not VMU or its subsidiaries. 
  

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 2.12. Periodic Meetings 
 Representatives of the Parties may meet from time to time to discuss operations and performance under this Agreement. Such meetings may include the following topics of discussion: 
 (a) notification and discussion of new Core Network Services and Network-Connected Services; 
 (b) current and future efforts with regard to Customized Services; 
 (c) changes and updates to Sprint PCS Facilities;

 (d) update forecasts and other periodically provided information required under this Agreement; and 
 (e) such other topics of discussion that the Parties mutually identify 
 2.13. Sprint PCS Service Provider Affiliates 
 The following terms are applicable to any Sprint PCS Service
Provider Affiliate Markets added under this Agreement: 
 (a) each Sprint PCS Service Provider Affiliate may elect to remove its markets from
the Sprint PCS Service Provider Affiliate Markets in Schedule 4.0(b), effective upon the expiration of the initial three-year period beginning July 7, 2002 or upon the expiration of each subsequent three-year period. Unless otherwise agreed and
despite any previous elections made by such Sprint PCS Service Provider Affiliate, no Sprint PCS Service Provider Affiliate will have the obligation to include its markets after July 6, 2023. 
 (b) each Sprint PCS Service Provider Affiliate may elect to remove its markets from the Sprint PCS Service Provider Affiliate Markets in Schedule 4.0(b)
upon the occurrence of a VMU Fundamental Change Event. For purposes of this subsection only, “VMU Fundamental Business Change” means: (I) VMU’s implementation of services other than a Pay-As-You-Go Service in its Sprint PCS
Service Provider Affiliate Market; or (II) VMU’s implementation of a plan to achieve sales in its Sprint PCS Service Provider Affiliate Market to customers outside the market segment of individuals up to and including 30 years old, other than
(A) limited test marketing and (B) promotions to parents or guardians for purchase for or on behalf of their children. For purposes of this subsection only, “Pay-As-You-Go Service” means either (i) service (a) that is
paid for prior to its availability for use, (b) that once used (and not replenished) is discontinued, (c) for which charges to the subscriber’s account are per minute, or other appropriate unitized measure of usage, and (d) for
which no “payment due” invoice is delivered to the subscriber or (ii) service described in (i)(a)-(d) above, as modified by programs that reward subscribers if prepaid service usage exceeds a pre-established threshold, event
based programs (such as attendance at events or birthdays), replenishment based programs that reward subscribers for replenishment, programs that allow packages of non-telecommunications services (such as content, games or applications), automatic
account debit notification or pre-authorized automatic replenishment. 
  

 17 

 (c) each Sprint PCS Service Provider Affiliate may elect to remove its markets from the Sprint PCS
Service Provider Affiliate Markets in Schedule 4.0(b) upon the occurrence of any one or more events described in subsections (I) and (II) below occurs at either Sprint PCS or VMU or their respective controlling entities. 
 (I) an event in which in any one transaction or series of related transactions, control of a party to this Agreement or any entity directly or indirectly
controlling the party changes, or the party sells all or substantially all of the assets necessary or sufficient to conduct its business. This includes a change of control of the ultimate parent entity as determined by the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 rules. For purposes of this subsection, control means holding more than 50% of the outstanding voting securities of an entity or having the power to designate more than half of the directors of an entity.
Notwithstanding the forgoing, a right to remove markets does not occur: 
 (A) if a party changes the form of its organization without
materially changing its ultimate ownership (i.e., converting from a limited partnership to a limited liability company); or 
 (B) as long as
Sprint PCS (and its affiliated entities) and Virgin Group Investments Limited (and its affiliated entities): (i) collectively maintain the power to designate and so designate more than half of the directors of VMU; and (ii) each maintain
the power to designate and so designate an equal number of directors of VMU. 
 (II) Upon the occurrence of a Voluntary or Involuntary
Bankruptcy. 
 (d) if pursuant to Section 2.13(a), (b), or (c) a Sprint PCS Service Provider Affiliate elects to remove its Sprint
PCS Service Provider Affiliate Markets from this Agreement, such Sprint PCS Service Provider Affiliate shall continue to support existing End Users in the Sprint PCS Service Provider Affiliate Market, but VMU will no longer be able to resell
products and services in such Market. 
 (e) for the sake of clarification, nothing in this Section 2.13 impacts the functionality of PCS
Services in the Sprint PCS Service Provider Affiliate Markets. Other provisions of this Agreement address functionality, and this Section 2.13 is limited to the terms of inclusion of Sprint PCS Service Provider Affiliate Markets in the list of
Markets included under this Agreement. 
 (f) VMU acknowledges and agrees that except as specifically provided above, the terms and provisions
of the PCS Services Agreement apply to services provided by Sprint PCS Service Provider Affiliates including, but not limited to, the terms related to the implementation or customization of services. 
  

 18 

 (g) VMU acknowledges that Sprint PCS Service Provider Affiliates manage those portions of the Sprint PCS
Network located in the Sprint PCS Service Provider Affiliate’s service territory and that Sprint PCS Service Provider Affiliates managed network may operate differently than the network managed directly by Sprint PCS. Sprint PCS and VMU will
work together to take such differences into consideration in their planning in an effort to minimize material adverse impacts of such differences. 
 2.14. Abbreviated Dialing Code Service 
 Sprint PCS will lease to VMU Abbreviated Dialing Codes (each, an “ADC”) for
one-year terms beginning on the date of each lease. The term of the ADC lease will renew automatically for successive one-year terms unless either party notifies the other party in writing at least 30 days before the end of the current term of its
desire to terminate the lease. The ADCs are owned and controlled by Sprint. Nothing in this lease shall confer any ownership interest in the underlying ADC to VMU. 
 Sprint PCS will lease up to five (5) ADCs to VMU at no charge. Each additional ADC after the first 5 will be subject to a monthly charge of two thousand five hundred dollars ($2,500) per ADC and a one-time implementation fee of
twenty-eight thousand five hundred dollars ($28,500) per ADC. If VMU requests modifications to an existing ADC, Sprint will charge a one-time modification fee of $20,900. 
 VMU may reserve ADCs by written notice. If another Sprint PCS customer requests an ADC previously reserved by VMU, VMU shall, within fifteen (15) business days of receipt of written notice from Sprint PCS
indicating such other customer’s intention, agree to pay for the ADC as of the first business day of the succeeding month or waive any right to such ADC. 
 In order to support the ADC, VMU must maintain at its sole cost a toll free telephone number that the End Users will be routed to when using the ADC. 
 VMU shall use the ADC consistent with all applicable consumer protection regulations. 
 For the purpose of 2.14, “Abbreviated Dialing
Codes” or “ADC” means a 3-6 digit vanity number preceded by a symbol (e.g. # or *) that is translated into a toll free telephone number, or such other coded translations as the parties may mutually agree. 
 2.15. Sale of Sprint PCS Network and Facilities 
 If Sprint PCS enters into a transaction to sell a material portion of the Sprint PCS Network (both wireless spectrum and Facilities in a Market then included under the terms of this Agreement), Sprint PCS will use commercially reasonable
efforts to secure for VMU the right to continue to obtain PCS Services in the affected Markets from Sprint PCS, the acquirer or a third party. If Sprint PCS cannot secure such rights on such basis, then Sprint PCS agrees to waive its exclusivity
rights set forth in Section 2.7.1 with respect to such impacted Markets. 
  

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 2.16. Permitted Reorganization 
 The Parties agree that (i) nothing in this Agreement shall limit the ability of VMU to engage in any transactions contemplated by that certain Reorganization and
Purchase Agreement of Virgin Mobile USA, Inc., dated [                    ], 2007 (the “Reorganization”), and (ii) the
Reorganization shall not affect any rights or obligations of VMU or Sprint PCS under this Agreement. 
 2.17. Branding

 VMU shall not offer Mobile Voice and Data Services under any brand other than the “Virgin Mobile” trademark; provided that (i) if
VMU acquires a Person (such that the acquired Person becomes a wholly owned VMU Affiliate) that offers wireless services under another brand, VMU may continue using that brand for a period of up to two years following the closing of that
acquisition, and, subject to the prior approval of Sprint PCS, thereafter; and (ii) if such Person is a Sprint PCS reseller, the terms and provisions (including pricing) of such Person’s resale agreement with Sprint PCS will apply to any
such Person’s end users for the duration of such two year period. In the case of such acquisition, Sprint PCS will maintain its termination rights as set forth in Section 15.2.2, as applicable. 
 3. Term 
 Except as otherwise provided in this Agreement and unless
terminated earlier in accordance with the terms of this Agreement, the term of this Agreement will begin on the Effective Date and end on December 31, 2027. 
 4. Unique Characteristics of VMU / Sprint PCS Relationship 
 Sprint PCS has entered this Agreement in consideration of the unique
characteristics of VMU and unique nature of the relationship between Sprint PCS and VMU as set forth in this Agreement, all other agreements between Sprint PCS and VMU or regarding VMU, including the VTLA, as well as those agreements between the
Virgin entities referenced above and other Virgin entities and VMU including sales, marketing and distribution agreements. 
 5. Representations and
Warranties 
 Each Party makes the following representations and warranties, as applicable, as of the Effective Date: 
 5.1. Due Incorporation or Formation; Authorization of Agreements 
 The Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization. Each Party has the full power and authority to execute and deliver this Agreement and to
perform its obligations under this Agreement. 
  

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 5.2. No Conflict; No Default 
 Neither the execution, delivery and performance of this Agreement nor the consummation by the Party of the transactions contemplated in this Agreement will conflict with, violate or result in a breach of (a) any
applicable law, regulation, order, writ, injunction, decree, determination or award of any Governmental Authority, (b) any of the terms, conditions or provisions of the certificate of organization, bylaws or other governing documents of the
Party, or (c) any material agreement or instrument to which the Party is or may be bound or to which any of its material properties, assets or businesses is subject. 
 5.3. Litigation 
 There are no actions, suits, proceedings or investigations pending or, to the knowledge of
the Party, threatened against the Party or any of its properties, assets or businesses in, before or by any Governmental Authority which could, if adversely determined, reasonably be expected to have a material adverse effect on the Party’s
ability to perform its obligations under this Agreement. The Party has not received any currently effective notice of any default under any agreement, the default under which could reasonably be expected to have a material adverse affect on the
Party’s ability to perform its obligations under this Agreement. 
 6. Scope of PCS Service; Handset Handling; MIN Administration and Billing;
Representation to End Users 
 6.1. Limitation on Scope of PCS Service 
 6.1.1. General 
 VMU acknowledges: 
 (a) PCS Service is and will be available only to compatible and Sprint PCS-certified handsets (see Section 8.1.1) and only within the operating range of the Sprint
PCS Network; and 
 (b) PCS Service may be temporarily refused, interrupted, curtailed or otherwise limited because of transmission limitations caused by any
factor, including atmospheric, environmental or topographical conditions, Facilities limitations or constraints, or Facilities changes, modifications, updates, relocations, repairs, maintenance or other similar activities necessary for the proper or
improved operation of the Facilities. 
 6.1.2. Quality of PCS Service 
 Sprint PCS covenants that the PCS Service will not be of inferior quality (including, but not limited to, dropped calls, blocked calls, call setup, transmission speeds, and E-911 capabilities) or clarity to that of
the generally available PCS services provided by Sprint PCS to consumer Customers to the extent that VMU provides such services to End Users. 
  

 21 

 6.1.3. Availability of Facilities and Licenses 
 Sprint PCS’ obligation to provide PCS Service to VMU is conditioned on Sprint PCS’ ability to obtain, retain and maintain, without unreasonable expenses,
suitable Facilities and licenses, including the License for each Market. 
 6.1.4. Third Party Agreements 
 Attached as Schedule 3.0 to this Agreement is a description of the agreements (to the extent possible pursuant to Sprint PCS’ confidentiality obligations) between
Sprint PCS and third parties that Sprint PCS reasonably believes may have a material impact upon its ability to provide VMU with the PCS Services pursuant to the terms and conditions of this Agreement. 
 6.1.5. Highly Concentrated Usage 
 If VMU or End Users
create situations that cause temporary highly concentrated usage in limited areas on the Sprint PCS Network, VMU and End Users may encounter capacity constraint related symptoms, such as excessive call blocking or call dropping. Except as otherwise
provided in Section 7.7, Sprint PCS is not liable to VMU or End Users with respect to any claim or damage related to or arising out of or in connection with (i) any such capacity constraint, (ii) any coverage gap, or (iii) any
temporary PCS Service refusal, interruption, curtailment or other limitation described in this Agreement. VMU may notify Sprint PCS of anticipated highly concentrated usage by End Users in a particular area on the Sprint PCS Network, including any
anticipated temporary capacity constraint related symptoms. Upon receipt of VMU’s notice, Sprint PCS may decide to make reasonable efforts to address the constraint. 
 6.1.6. Sprint PCS Data Services 
 In accordance with this Agreement and the Operations Manual, End Users may access
the Sprint PCS Data Services. With respect to Sprint PCS Data Services, the Parties acknowledge and agree that: 
 (a) VMU is responsible for negotiating and
implementing its own wireless ISP content and applications (“VMU Data Content and Applications”). 
 (b) Any content made available to End Users
via the Sprint PCS Network will be subject to the reasonable regulation, limitation and restriction by Sprint PCS as necessary for Sprint PCS to comply with its reasonable interpretation of applicable laws, rules and regulations of Governmental
Authorities and its legal exposure. These regulations, restrictions and limitations will be no more restrictive than those used for Sprint PCS’ own content offerings. 
 (c) Except as otherwise agreed by Sprint PCS pursuant to this Agreement, VMU Data Content and Applications will not reside on the Sprint PCS Network, but will be made available to End Users through the Sprint PCS
Mobile Data Portal or Sprint PCS Mobile Voice Portal, as applicable. 
 (d) Revenues, costs, and profits solely related to VMU’s Data Content and
Applications accrue to VMU. 
 (e) Sprint PCS is not a publisher of third party content that can be accessed through Sprint PCS Data Services. Sprint PCS is
not responsible or liable to VMU or its End Users for any content, including 

  

 22 

 
information, opinions, advice, statements or services that are provided by third parties and accessible through Sprint PCS Data Services or any damages
resulting therefrom. Sprint PCS does not guarantee the accuracy, completeness or usefulness of information that is obtained through the Sprint PCS Data Services. Sprint PCS makes no representations or warranties regarding the provider, scope or
nature of the content or services that will be available to End Users. The inclusion of any content in the default settings on an End User’s handset is not an endorsement or an acceptance of any liability with respect to the content.

 (f) VMU is solely responsible for ensuring that handsets used by its End Users to which VMU provides data connectivity are enabled with data connectivity.
VMU acknowledges that not all handsets are enabled with data connectivity nor are all handsets capable of use for data connectivity as a data modem. 
 (g)
If VMU desires to send large batch SMS messages (more than 1000 messages in a batch or in rapid succession), VMU must first notify Sprint PCS and coordinate such batch messages with Sprint PCS both with regard to technical prerequisites and timing.
Large batch SMS messages will be sent by VMU during off-peak hours. 
 6.2. Handset Handling Services 
 VMU will be responsible for making its own arrangements to purchase compatible, Sprint PCS-certified and approved handsets from authorized manufacturers or handset
fulfillment vendors as specified in the Operations Manual. Sprint PCS may, from time to time, offer to VMU the handset handling and logistics services set forth in the Operations Manual and VMU, if VMU uses those services, will pay for those
services as negotiated by the Parties under Section 7.3. Where permitted under contract and commercially reasonable, Sprint PCS will enable VMU to leverage Sprint PCS’ existing terms with equipment vendors. VMU will be solely responsible
for all handset acquisition, handling and distribution. VMU will be responsible for making its own arrangements to purchase accessories from manufacturers selected by VMU and arrange for delivery of those accessories directly to VMU. Sprint PCS will
not provide any handling or logistics services with respect to accessories unless expressly agreed by the Parties. Sprint PCS may, in its sole discretion, increase, decrease or discontinue the handset handling services that it provides to VMU, upon
reasonable prior notice to VMU. Sprint PCS will not be responsible for the handsets except as otherwise provided in this Agreement. With respect to handset certification and approval services, Sprint PCS will not arbitrarily or capriciously
discriminate against VMU and any disparate treatment will be based on Sprint PCS’ reasonable analysis of factors such as: projected volumes of sale of devices for which certification and approval is sought, prior performance against similar
past projections, anticipated financial impact to Sprint PCS from sales of devices (and associated services) for which certification and approval is sought, technical and logistical constraints including capacity limitations and those Sprint PCS
internal efforts that are given priority for reason of competitive advantage in the wireless industry, market differentiation, technology migration or replacement of deselected or malfunctioning devices. 
  

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 6.3. Coverage Representations 
 Sprint PCS will make information available to VMU for VMU to create coverage maps. The map information may depict some future coverage that may or may not be identified as such. PCS Service may not be available in all
areas shown on the coverage maps due to a variety of factors, including relocation or modification of Facilities, environmental or topographical conditions, such as building configuration, or unexpected capacity demands. The maps will not reflect
temporary coverage changes or coverage gaps. Sprint PCS is not liable to VMU or End Users for any claim or damage related to or arising out of or in connection with any map information, including the accuracy thereof. 
 6.4. MIN Administration 
 (a) Sprint PCS will
provide MIN administration for VMU in accordance with the Operations Manual and this Section 6.4. MINS are assigned at the time of activation. Sprint PCS will obtain and manage MIN’s on behalf of and for the benefit of VMU in accordance
with the forecasts provided by VMU hereunder to the extent possible in consideration of those factors affecting MIN availability that are outside of Sprint PCS’ control. Should Sprint PCS foresee or experience a shortage of MIN’s in a
particular region, preventing it from providing MIN’s to VMU or requiring number conservation measures, Sprint PCS will provide VMU advance notice of such condition and will use commercially reasonable efforts to pursue available MIN’s
with the appropriate authorities. It is VMU’s responsibility to accurately forecast any plans it may develop for promotional or marketing efforts that are likely to result in a need for excess MIN’s in a particular region, or otherwise
confirm with Sprint PCS the availability of sufficient MIN’s to meet its marketing demand. VMU must provide Sprint PCS sufficient advance notice of any such unplanned events and cooperate to establish a realistic MIN fulfillment schedule and
marketing plan. 
 (b) If (i) VMU adopts an End User deactivation policy in excess of 180 days from last replenishment, and (ii) such policy
results in a significantly greater than average number of assigned inactive MIN’s in its MIN base, VMU agrees that it will take affirmative steps to decrease the number of assigned inactive MIN’s in its base to average levels. Sprint PCS
may notify VMU of any such condition. If VMU fails to maintain its assigned inactive MIN’s at an industry average level after 60 days following notice of such condition, Sprint PCS may restrict MIN availability to VMU in the regions where VMU
has such excess assigned inactive MIN’s and require that VMU recycle MIN’s back into its available MIN pool until it reaches such average level. 
 (c) With respect to MIN management, Sprint PCS will not arbitrarily or capriciously discriminate against VMU and any disparate treatment will be based on Sprint PCS’ reasonable analysis of factors such as: projected volumes of sale of
devices associated with requested MIN’s, prior performance against similar past projections, anticipated financial impact to Sprint PCS from sales of devices (and associated service) associated with the requested MIN’s, regulatory
compliance issues, technical and logistical constraints including capacity limitations and sequential numbering requirements and those Sprint PCS internal efforts that are given priority for reason of competitive advantage in the wireless industry,
technology migration or mandated MIN replacement. 
  

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 6.5. Billing Records 
 Sprint PCS will regularly provide magnetic billing tapes or other billing records to VMU in accordance with the Operations Manual. These records will be free of material defects. Payment for (i) defective billing
records or (ii) stale billing records, which are records that Sprint PCS did not forward to VMU within the period described in the Operations Manual, may be disputed under the procedures set forth in Section 7.6. Sprint PCS’ billing
practices and policies are described in the Operations Manual. Sprint PCS may bill certain charges in advance. Billed charges (per call or event) that result in fractional cents may be rounded in a manner that does not materially and adversely
impact the aggregate amount VMU is required to pay Sprint PCS under this Agreement as compared to amounts that would be due and owing absent any such rounding. 
 6.6. Operations Manual 
 The Operations Manual, incorporated herein by this reference and a true and accurate
copy of which was provided to VMU on or about the date of the Original Agreement and an updated copy was provided as of the Effective Date, includes the policies, practices, procedures, and processes under which, and relevant information and
directions pertaining to the manner in which, PCS Services are provided to VMU by Sprint PCS. The provisions of this Agreement supersede any inconsistent provisions of the Operations Manual and any modifications thereto. To update, enhance and
maintain the uniformity of such Sprint PCS policies, practices, procedures, processes, information and instruction, the Operations Manual may be periodically modified or supplemented by Sprint PCS in the same manner and to the same extent as Sprint
PCS modifies the operations manuals of substantially similar purchasers of its services. Sprint PCS will not arbitrarily or capriciously discriminate against VMU with respect to changes to the Operations Manual. Sprint PCS will provide VMU with
prior written notice of any material changes. Notwithstanding anything in this Agreement to the contrary, if Sprint PCS proposes any change to those provisions of the Operations Manual that apply only to VMU, such change will only become effective
if consented to by VMU, such consent not to be unreasonably withheld or delayed. Notwithstanding the foregoing, VMU is responsible for creating and maintaining its operational and support systems in a manner that such systems function in accordance
with and continue to function with the Sprint PCS infrastructure used to provide PCS Services, as such infrastructure may evolve over time. 
 7. Prices
and Terms of Payment 
 7.1. Payment of Charges 
 VMU is liable and will pay Sprint PCS for all charges associated with the use of the PCS Service by VMU. VMU will pay to Sprint PCS the charges described below as determined in accordance with the Cost of Service
Formula attached hereto and the processes described in such attachment. Except as specifically provided in the applicable attachment, disputed charges are governed by the procedures set forth in Section 7.6. All charges under this Agreement are
stated and are to be paid in US dollars. 
  

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 7.2. Airtime Pricing; 3G Data Transport Pricing; Transaction-Based Pricing 
 7.2.1 Minute-Based Airtime Pricing 
 (a) Sprint PCS will bill VMU for each minute of usage (for airtime services commonly measured in minutes of usage) at a price determined in accordance with the Cost of Service Formula attached as Schedule 1.0 and that will be reported to a
limited group of VMU personnel pursuant to the process described in Schedule 1.0. During each calendar year, Sprint PCS will charge VMU for peak and off-peak usage at the rates determined in accordance with the Cost of Service Formula and reported
to a limited group of VMU personnel through limited distribution of the Airtime Pricing Matrix which is based upon VMU’s Subscriber volume and End User Lifetime Value. One month after the end of each calendar quarter, Sprint PCS will adjust
VMU’s position in the Airtime Pricing Matrix (and the peak and off-peak pricing applicable to VMU’s purchase of MOU based airtime services under this Section 7.2.1) based on VMU’s performance during that quarter. VMU’s
pricing will then remain at that level for three months, until the next quarterly adjustment hereunder. 
 (b) In February of each calendar year, Sprint PCS
will compare its actual Cost of Service for MOU based airtime services during the preceding year (as determined by the Cost of Service Formula) with the rates charged to VMU during such year. If the actual Cost of Service is more than $100,000
higher than the rates charged to VMU during the year (after combination with any adjustments calculated contemporaneously under Section 7.2.2(b), Section 7.2.3(b) and Section 7.2.4 below, if any) Sprint PCS will invoice and VMU will
pay to Sprint PCS (under the payment terms set forth in Section 7 of this Agreement) the difference between the actual Cost of Service and the rates charged during the year multiplied by the total MOUs billed to VMU during the calendar year. If
the actual Cost of Service under this provision, Section 7.2.2(b) and Section 7.2.3(b) below is more than $100,000 lower than the rates charged to VMU during the year (after combination with any adjustments calculated contemporaneously
under Section 7.2.2(b), Section 7.2.3(b) and Section 7.2.4 below, in any), Sprint PCS will report such difference to VMU by February 28 of such calendar year and pay to VMU (in accordance with the time frames set forth in
Section 7.4) the excess amounts calculated similarly. 
 (c) At the same time, Sprint PCS will adjust the Airtime Pricing Matrix for the next
three-years to reflect any revised estimates of its Cost of Service for MOU based airtime services, based upon its revised, then current, financial business plan. As part of this adjustment Sprint PCS will extend the Airtime Pricing Matrix to again
cover 4 years by adding a pricing table for an additional year reflecting its estimate of the Cost of Service for MOU based airtime services for that year (as determined by the Cost of Service Formula). 
 (d) Within 15 days following the close of each calendar quarter, Sprint PCS will provide VMU with a written notification (in the form attached hereto as Schedule 8.0)
that includes Sprint PCS’ estimate of the percentage variance it expects in the upcoming February calculations described in subsection (b) above. VMU acknowledges that the estimate provided by Sprint is non-binding and will be based solely
on the information available to Sprint PCS at the time of the estimate (which will include only a portion of the actual results in the just ended quarter, Sprint PCS forecasts and other relevant information to complete the analysis, including
information provided by VMU and other resellers) and that actual result may, and in many instances will, vary from the estimate. By providing this 

  

 26 

 
estimate, VMU agrees that Sprint assumes no responsibility for VMU’s financial reporting and VMU understands and agrees that it is solely responsible
for ensuring that appropriate disclosures are made to its investors and potential investors. 
 7.2.2 SMS Message Based
Airtime Pricing 
 (a) The price for each Short Message Service (SMS) message (SMS being services commonly measured by number of messages) will be determined
in accordance with the Cost of Service Formula attached as Schedule 1.1 and will be reported to a limited group of VMU personnel pursuant to the process described in Schedule 1.1. During each calendar year, Sprint PCS will charge VMU for SMS usage
(messages) at the rates determined in accordance with the Cost of Service Formula and reported to a limited group of VMU personnel through limited distribution of the SMS Pricing Matrix based upon VMU’s Subscriber volume and End User Lifetime
Value. One month after the end of each calendar quarter, Sprint PCS will adjust VMU’s position in the SMS Pricing Matrix (and the pricing applicable to VMU’s purchase of message based SMS services under this Section 7.2.2) based on
VMU’s performance during the quarter. VMU’s pricing will then remain at that level for three months, until the next quarterly adjustment hereunder. 
 (b) In February of each calendar year, Sprint PCS will compare its actual Cost of Service for SMS services during the preceding year (as determined by the Cost of Service Formula) with the rates charged to VMU during such year. If the
aggregate actual Cost of Service is more than $100,000 higher than the rates charged to VMU during the year (after combination with any adjustments calculated contemporaneously under Section 7.2.1(b) above and Section 7.2.3(b) and
Section 7.2.4 below, if any) Sprint PCS will invoice and VMU will pay to Sprint PCS (under the payment terms set forth in Section 7 of this Agreement) the difference between the actual Cost of Service and the rates charged during the year
multiplied by the total number of messages billed to VMU during the calendar year. If the actual Cost of Service under this provision, Section 7.2.1(b) above and Section 7.2.3(b) below is more than $100,000 lower than the rates charged to
VMU during the year (after combination with any adjustments calculated contemporaneously under Section 7.2.1(b) above and Section 7.2.3(b) and Section 7.2.4 below, if any) Sprint PCS will report to VMU by February 28 of such
calendar year and pay (in accordance with the time frames set forth in Section 7.4) the excess amounts calculated similarly. 
 (c) At the same time,
Sprint PCS will adjust the SMS Pricing Matrix for the applicable years to reflect any revised estimates of its Cost of Service for SMS services, based upon its revised, then current, financial business plan. As part of this adjustment Sprint PCS
will extend the SMS Pricing Matrix to again cover 4 years by adding a pricing table for an additional year reflecting its estimate of the Cost of Service for SMS services for that year (as determined by the Cost of Service Formula). 
 (d) Within 15 days following the close of each calendar quarter, Sprint PCS will provide VMU with a written notification (in the form attached hereto as Schedule 8.0)
that includes Sprint PCS’ estimate of the percentage variance it expects in the upcoming February calculations described in subsection (b) above. VMU acknowledges that the estimate provided by Sprint is non-binding and will be based

  

 27 

 
solely on the information available to Sprint PCS at the time of the estimate (which will include only a portion of the actual results in the just ended
quarter, Sprint PCS forecasts and other relevant information to complete the analysis, including information provided by VMU and other resellers) and that actual result may, and in many instances will, vary from the estimate. By providing this
estimate, VMU agrees that Sprint assumes no responsibility for VMU’s financial reporting and VMU understands and agrees that it is solely responsible for ensuring that appropriate disclosures are made to its investors and potential investors.

 7.2.3 Megabyte-Based 3G Data Transport Pricing 
 (a) The price for each megabyte (“MB”) of 3G Data Transport (for 3G Data Transport service commonly measured by number of megabytes) will be determined in accordance with the Cost of Service Formula (Per MB Pricing) attached as
Schedule 1.2 and will be reported to a limited group of VMU personnel pursuant to the process described in Schedule 1.2. During each calendar year, Sprint PCS will charge VMU for 3G Data Transport at the rates determined in accordance with the Cost
of Service Formula (Per MB Pricing) and reported to a limited group of VMU personnel through limited distribution of the 3G Data Transport Pricing Matrix based upon VMU’s Subscriber volume and End User Lifetime Value. One month after the end of
each calendar quarter, Sprint PCS will adjust VMU’s position in the 3G Data Transport Pricing Matrix (and the pricing applicable to VMU’s purchase of 3G Data Transport service under this Section 7.2.3) based on VMU’s performance
during the quarter. VMU’s pricing will then remain at that level for three months, until the next quarterly adjustment hereunder. 
 (b) In February of
each calendar year, Sprint PCS will compare its actual Cost of Service for 3G Data Transport service during the preceding year (as determined by the Cost of Service Formula) with the rates charged to VMU during such year. If the aggregate actual
Cost of Service is more than $100,000 higher than the rates charged to VMU during the year (after combination with any adjustments calculated contemporaneously under Section 7.2.1(b), Section 7.2.2(b) above and Section 7.2.4 below, if
any) Sprint PCS will invoice and VMU will pay to Sprint PCS (under the payment terms set forth in Section 7 of this Agreement) the difference between the actual Cost of Service and the rates charged during the year multiplied by the total
number of MB billed to VMU during the calendar year. If the actual Cost of Service under this provision, Section 7.2.1(b) and Section 7.2.2(b) above is more than $100,000 lower than the rates charged to VMU during the year (after
combination with any adjustments calculated contemporaneously under Section 7.2.1(b) and Section 7.2.2(b) above and Section 7.2.4 below, if any) Sprint PCS will report to VMU by February 28 of such calendar year and pay (in
accordance with the time frames set forth in Section 7.4) the excess amounts calculated similarly. 
 (c) At the same time, Sprint PCS will adjust the
3G Data Transport Pricing Matrix for the applicable years to reflect any revised estimates of its Cost of Service for 3G Data Transport services, based upon its revised, then current, financial business plan. As part of this adjustment Sprint PCS
will extend the 3G Data Transport Pricing Matrix to again cover 4 years by adding a pricing table for an additional year reflecting its estimate of the Cost of Service for 3G Data Transport services for that year (as determined by the Cost of
Service Formula). 
  

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 (d) Within 15 days following the close of each calendar quarter, Sprint PCS will provide VMU with a written notification
(in the form attached hereto as Schedule 8.0) that includes Sprint PCS’ estimate of the percentage variance it expects in the upcoming February calculations described in subsection (b) above. VMU acknowledges that the estimate provided by
Sprint is non-binding and will be based solely on the information available to Sprint PCS at the time of the estimate (which will include only a portion of the actual results in the just ended quarter, Sprint PCS forecasts and other relevant
information to complete the analysis, including information provided by VMU and other resellers) and that actual result may, and in many instances will, vary from the estimate. By providing this estimate, VMU agrees that Sprint assumes no
responsibility for VMU’s financial reporting and VMU understands and agrees that it is solely responsible for ensuring that appropriate disclosures are made to its investors and potential investors. 
 7.2.4 Additional Transaction-Based Pricing 
 The price
charged to VMU for usage for airtime services not commonly measured in minutes of use, SMS messages or per MB will be based on a similar Cost of Service Formula to be attached as an additional Schedule, subject to and based on the provisions of the
Formula and Sprint PCS’ then current financial business plan and reported to a limited group of VMU personnel through a Pricing Matrix in the same manner described above. The pricing will be calculated based upon a unit of measurement commonly
used to measure usage of the additional airtime service. Rounding procedures for such other metered services will be consistently applied. Costs included in the Cost of Service Formula for the MOU based airtime services, SMS message based pricing
and MB based pricing described above and costs included in the calculation of any other additional transaction based pricing under this Section 7.2.4 will not be included in the Cost of Service calculation for new transaction-based pricing
developed hereunder. 
 7.3. Pricing for Customized Services 
 VMU will pay for its use of the Customized Service pursuant to the applicable Cost of Service described above. VMU will pay Sprint PCS all of the Customized Service Costs. VMU will pay Sprint PCS for all or a portion
of the Implementation Costs related to Customized Services as described in Section 2.5. Sprint PCS may invoice VMU periodically for such charges as they are incurred. 
 7.4. Invoices 
 Sprint PCS will provide to VMU
regular invoices of charges incurred by VMU. Some charges incurred during a billing cycle may not appear until subsequent billing cycles, but VMU will not be obligated to pay for any invoiced charge related to the provision of PCS Services first
received by VMU more than twenty-four (24) months after such charge has been incurred. Payment of the undisputed portion of each invoice is due by wire transfer within 10 business days of the date of VMU’s receipt of the invoice and
supporting documentation, the magnetic billing tape or other mutually agreed upon billing record (“Due Date”). 
  

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 7.5. Interest 
 Amounts not paid to either Party by the applicable due date will accrue interest at the rate of 1% per month. 
 7.6. Disputed Charges 
 VMU may, in good faith, withhold payment of the disputed portion of any invoice until the dispute is resolved
or deemed resolved under this Section 7.6, provided that VMU must pay the undisputed amount of any invoice. VMU may not withhold disputed amounts from subsequent amounts that become due. If VMU disputes its charges under this Agreement, then
VMU must provide to Sprint PCS written notice of the disputed charges by the Due Date and a detailed explanation of the nature of the dispute within 60 days after the Due Date of the invoice on which the disputed amount first appears. If VMU fails
to dispute charges within 60 days of the Due Date, VMU will be deemed to have waived any right to dispute such charges. Within 30 days of receipt of such explanation from VMU, Sprint PCS will provide VMU with its good faith determination regarding
disputed charges and, if appropriate, will credit VMU’s account within the 30 day period. If Sprint PCS determines that all or part of VMU’s disputed charges were not disputed in good faith or that the basis of such dispute is not valid or
is incorrect, Sprint PCS will provide VMU written notice of such determination and any amounts withheld by VMU will be due and owing under the terms of this Agreement within 10 days of receipt of Sprint PCS’ written determination. If VMU
disagrees with such determination by Sprint PCS the matter will be resolved in accordance with the dispute resolution process described in Section 17 below, except to the extent such disagreement relates to the Cost of Service Formula or the
determinations thereunder, in which case the audit rights described in Schedule 1.0 control. 
 7.7. Taxes and other Government Fees

 VMU will provide to Sprint PCS valid and complete resale or other exemption certificates or other documents substantiating exemption for PCS
Service purchased from Sprint PCS and resold to End Users. After receipt of such certificates or other documents, Sprint PCS will not levy any government fees, including, but not limited to universal service fees, on VMU. VMU is solely responsible
for the computation, billing, and collection of all applicable Taxes and other fees and charges levied by Governmental Authorities with respect to services purchased from Sprint PCS and resold by VMU. VMU is solely responsible for the timely and
accurate remittance of such to the appropriate Governmental Authorities. If Sprint PCS is required to remit such amounts directly to a Governmental Authority, Sprint PCS will invoice VMU for such amounts and provide supporting documentation.

  

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 7.8. Adjustments for PCS Service Outages 
 Outages of PCS Service will be identified in Sprint PCS’ reports and based on Sprint PCS’ standard network monitoring and operations procedures. Sprint PCS will
not provide adjustments on VMU’s invoice for PCS Service outages. 
 8. VMU Rights and Obligations 
 8.1. Handsets 
 8.1.1.
Compatibility 
 VMU will use, and will require its End Users to use, only handsets that: 
 (a) are compatible with the PCS Service and the Facilities; 
 (b) comply with Sprint PCS’ requirements for
compatibility of handsets with the PCS Service and the Facilities, including the successful completion of Sprint PCS’ handset certification process described above and the use of the Handset Proprietary Information licensed to Sprint PCS under
Section 8.1.3; and 
 (c) comply with all applicable FCC or state legal requirements for compatibility of handsets with the PCS Service and the
Facilities. 
 When VMU becomes aware that any handset used by an End User does not comply with the standards set forth in this Section 8.1.1, VMU will
use commercially reasonable efforts to ensure that the handset is not used and, if necessary, terminate the use, or terminate the Virgin Mobile Service to the offending End User. Provided that the handsets meet the requirements of this Section, VMU
will have sole discretion regarding the type and variety of handsets that it sells to End Users. 
 8.1.2. Conversion of Sprint PCS
Phones 
 Neither VMU nor its Affiliates will activate or add to its billing data (i) a new (never activated) Sprint PCS branded device, (ii) an
activated Sprint PCS branded device in a Customer account, or (iii) a deactivated Sprint PCS branded device that was in an activated Customer account at any time during the 60 days prior to VMU’s request for activation. 
 Neither VMU nor its Affiliates will specifically target market customers to switch from Sprint PCS’ or any of its Affiliates’ services to VMU’s or any of
VMU’s Affiliates’ services except as specifically agreed in writing by the Parties. 
 8.1.3. License to Use Certain Handset
Proprietary Information in Handsets Using the Virgin Mobile Service 
 For the term of and subject to this Agreement, Sprint PCS grants to VMU a
non-transferable, royalty-free, non-exclusive license to use and sell at retail the Handset Proprietary Information, in object code form, solely to permit VMU and End User’s to use the Virgin Mobile Service. Except as provided in this
Section 8.1.3, VMU may not assign or sublicense any of its license rights or copy, change, alter or modify the Handset Proprietary Information. 
  

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 8.1.4. No Sprint PCS Responsibility 
 Except as provided in this Agreement, Sprint PCS will not be required to make any changes, modifications or additions to its equipment, operations or Facilities to accommodate VMU or the handsets provided by VMU.
Sprint PCS will not be responsible to VMU or any End User for the operation, testing or maintenance of any handsets. Sprint PCS also will not be responsible for VMU’s handsets during transportation, handling, transfer, loading or unloading or
any other time, except as otherwise agreed by the Parties. 
 8.1.5. Provision of ESN 
 Before VMU makes handsets available for sale to End Users or retailers in connection with providing Virgin Mobile Service, VMU will provide to Sprint PCS the ESN and
relevant handset data for each End User handset in accordance with the ESN notification procedures agreed among Sprint PCS, VMU, any VMU handset fulfillment vendor and handset manufacturers. 
 8.2. VMU Staff 
 8.2.1.
General 
 VMU will provide, at its sole expense, an adequate and properly trained staff: 
 (a) to market Virgin Mobile Service and to support and train End Users with respect to the Virgin Mobile Service; to receive, investigate, and verify complaints from End Users relating to PCS Service or Virgin Mobile
Service; and 
 (b) as necessary to otherwise support its efforts under this Agreement. 
 VMU will report any trouble with respect to the Virgin Mobile Service to Sprint PCS only upon reasonable verification that the trouble is due to reasons other than misuse or malfunctioning of End User handsets, the
failure of those handsets to meet standards for compatibility with PCS Service or other elements or conditions within the reasonable control of VMU. 
 8.2.2. No Sprint PCS Responsibility or Liability for VMU Staff 
 The staff employed or contracted for by VMU to perform
services for VMU are not employees or agents of Sprint PCS and VMU assumes full responsibility and liability for their acts and omissions, including compliance by its staff (including contractors) with this Agreement, applicable federal, state and
local laws, regulations, and judicial or regulatory orders, and relevant industry standards. All staff will be employed or contracted for at VMU’s sole expense and VMU will be solely responsible for all employment benefits and withholding
issues, including, workers’ compensation, disability benefits, unemployment insurance or withholding income taxes and social security. 
 8.3. VMU’s Responsibility and Liability 
 Except as otherwise provided in this Agreement or in the Operations Manual, VMU will be
responsible and liable for all services, such as End User credit verification, billing, collection, 

  

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customer service, and all support necessary to provide Virgin Mobile Service and for all risks and expenses in connection with, related to or arising out of
the provision of Virgin Mobile Service. VMU will not make any representation, warranty or covenant to any End User that would misrepresent or conflict with this Agreement. VMU may provide written terms and conditions of service to End Users. Upon
Sprint PCS’ request, VMU will provide to Sprint PCS materials that VMU makes available to any End User for Sprint PCS’ review to determine compliance with this Agreement. VMU may delete non-public price information prior to submitting
those materials for Sprint PCS’ review. Sprint PCS will notify VMU if it deems any sections to require modification or deletion in order to ensure compliance with this Agreement and VMU will seek to ensure compliance with Sprint PCS’
reasonable request. VMU will not use any information about its End User’s data usage for any improper or unlawful purpose and it will protect the information in accordance with its own privacy policies. 
 8.4. VMU’s Responsibility for Fraud 
 VMU
will not engage in fraudulent activities. VMU is responsible for all costs and procedures associated with End User fraud, such as subscription fraud, usage on lost or stolen handsets that VMU fails to deactivate, or fraud occurring in connection
with VMU’s agents, employees or representatives, such as employee-related theft. VMU is responsible for all “Cloning Fraud” as set forth in Section 9.3 and fraud on a Roaming provider’s network as set forth in
Section 9.2.2. 
 8.5. Interference 
 VMU’s agents, employees, representatives and End Users may not interfere with the Facilities, the Sprint PCS Network or the PCS Service in a way as to impair the quality of service provided by Sprint PCS to its Customers.
Notwithstanding this prohibition, upon discovery of the interference by either Sprint PCS or VMU, the Party discovering the interference will promptly notify the other Party and VMU will promptly order the agent, employee, representative or End User
to cease the act(s) constituting the interference. Sprint PCS, concurrent with notice to VMU, may terminate the PCS Service to the End User and require VMU to take appropriate action to eliminate the use or interference by the agent, employee,
representative or End User. 
 8.6. VMU’s Reports to Sprint PCS 
 VMU will provide to Sprint PCS, quarterly, no later than 15 days following the end of a quarter, on a per Market basis a rolling 18 month forecast of increases and
decreases of End Users, call volumes and any other information or report required under the Operations Manual. In addition, VMU will provide such reports as necessary to make the adjustments described in Section 7. 
 8.7. No Disparagement 
 Neither Party nor any
of their Affiliates will develop a program, policy or otherwise direct its employees to intentionally disparage the products and services of the other party in a manner outside of the normal competitive environment in which each Party is
distributing and selling its products and services. If either Party demonstrates to the other Party that such intentional disparagement has occurred, the offending Party agrees to direct (in writing with a copy to the non-offending Party) the
personnel involved to promptly cease such disparagement. 
  

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 8.8. Non Solicitation 
 VMU shall not solicit for employment any employee of Sprint PCS or its Affiliates, without the consent of Sprint PCS; provided, however, that this Section 8.8 shall not preclude VMU from interviewing, discussing
terms of employment with or hiring an employee of Sprint PCS or any of its Affiliates that responds to any generalized search by VMU for employees through media advertisements, employee search firms or otherwise. 
 9. Sprint PCS’ Rights and Obligations 
 9.1. Modifications 
 Sprint PCS may, from time to time, in its sole discretion, change or update the Facilities or Sprint PCS’
operations, equipment, software, procedures or services. Sprint PCS will not be liable to VMU or to End Users if those modifications, changes or updates require changes to, updates of or modifications of VMU’s or End Users’ handsets or
other products, accessories, systems or procedures. Sprint PCS may, in its sole discretion, offer services or products that are not part of the PCS Service. Sprint PCS will use the same efforts to avoid any material adverse impact on End Users that
it uses to avoid material adverse impacts on its Customers. 
 9.2. Roaming Services 
 9.2.1. General 
 Sprint PCS will make Roaming
available to VMU in areas in which Sprint PCS has a Roaming agreement on the terms and conditions contained in that agreement and the prices set forth in the applicable Cost of Service Formula. VMU hereby acknowledges and agrees that Sprint PCS is
not responsible for the billing practices, service charges or availability of Roaming provided by Roaming providers, and that Sprint PCS is not obligated to provide Roaming in areas in which Sprint PCS has not entered into Roaming agreements or
loses its Roaming agreements. Manual Roaming may be available dependent on the arrangements established and the level of service provided by each Roaming provider. 
 9.2.2. Disputes Concerning Roaming Sprint PCS’ Charges and Other Terms and Provisions 
 If a material dispute
concerning a Roaming provider’s charges or other terms and conditions occurs, Sprint PCS will process the dispute with the Roaming provider in accordance with Sprint PCS’ Roaming agreement. Roaming fraud is VMU’s responsibility.

  

 34 

 9.2.3. Blocking Roaming 
 Until such time as VMU provides thirty (30) days prior notice of its request that Sprint cease blocking Roaming for all its End Users, Sprint shall remove all Roaming switches from the list of switches permitted
to complete calls for VMU’s End Users. As a result of circumstances outside of Sprint’s control, however, a Roaming switch may at times complete a Roaming call for an End User(s). In such case, VMU will be liable for Roaming charges at the
rate set forth in the “Roaming” subsection of Section VI, “Other Pricing,” Schedule 1.0. Sprint may also request that VMU use commercially reasonable efforts to block Roaming on its Integrated Service Control Point (ISCP).

 9.3. Sprint PCS Network Fraud Detection and Responsibility 
 While Sprint PCS will use commercially reasonable efforts to assist VMU to detect fraudulent calls made using VMU’s MIN’s as described in the Operations Manual, Sprint PCS is not liable to VMU for such
fraudulent calls. The terms “fraudulent calls made using VMU’s MIN’s” means calls associated with the loading by an unrelated and independent third party of a MIN/ESN combination onto a wireless device to use the PCS Service, as
more specifically defined in the Operations Manual as “Cloning Fraud”. Sprint PCS makes no guarantee that any or all Cloning Fraud will be detected. 
 9.3.1. Suspecting Cloning Fraud on the Sprint PCS Network 
 In case of suspected Cloning Fraud, Sprint PCS will not
terminate PCS Service to that MIN, unless VMU directs Sprint PCS to terminate PCS Service after VMU has exhausted its efforts to terminate PCS Services to its End User MIN’s. If VMU directs Sprint PCS to terminate service to the affected MIN,
Sprint PCS will, in a commercially reasonable manner, promptly terminate the service to such MIN. VMU will be responsible for all charges associated with such MIN. 
 9.3.2. Definitive Cloning Fraud on the Sprint PCS Network 
 In case of definitive Cloning Fraud, Sprint PCS may
terminate service to the affected MIN concurrently with notice of detection to VMU. Failure of authentication may be considered definitive Cloning Fraud. VMU is responsible for all Cloning Fraud and any other fraud or similar activity on the End
User account. 
 9.4. Wiretapping and Subpoena Compliance 
 9.4.1. Electronic Surveillance 
 If a law enforcement
agency issues a court order to VMU relating to electronic surveillance of an End User MIN, VMU shall confirm all End User information contained in said court order to such law enforcement agency and will promptly contact the Sprint PCS
representative designated in the Operations Manual to perform the electronic surveillance. If VMU either: (a) fails to confirm the End User information as requested in the court order; or (b) fails to promptly contact the Sprint PCS
representative designated for technical assistance in performing the electronic surveillance, and if Sprint PCS is fined by a court of law as a direct result of VMU’s failure described in (a) or (b) above, VMU will reimburse Sprint
PCS for the amount of such fine. 
  

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 9.4.2. Subpoena Compliance 
 If a law enforcement agency contacts VMU with a subpoena relating to End User MIN billing records or End User information, including but not limited to, End User name, address and credit information, VMU must honor
the subpoena by providing the requested information to such law enforcement agency within the timeframe specified in the subpoena. If the subpoena requests information not provided by Sprint PCS to VMU in its normal billing practice, VMU must
promptly contact the Sprint PCS representative designated in the Operations Manual for assistance in compliance so that the timeframe specified in the subpoena can be met. If VMU either: (a) fails to provide the End User phone records requested
in the subpoena; (b) fails to provide the End User phone records requested in the subpoena within the timeframe specified in the subpoena; or (c) fails to promptly contact the designated Sprint PCS representative for assistance when the
subpoena requests information not provided by Sprint PCS to VMU in its normal billing practice, and if Sprint PCS is fined by a court of law as a direct result of VMU’s failure described in (a), (b) or (c) above, VMU will reimburse
Sprint PCS for the amount of such fine. 
 9.5. Sprint PCS’ Reports to VMU 
 Sprint PCS will provide to VMU the reports specified in the Operations Manual and in Schedules 1.0, and 1.1 with regard to the pricing for products and services under
this Agreement. 
 9.6. Sprint PCS Staff; No VMU Responsibility or Liability for Sprint PCS Staff 
 The staff employed or contracted for by Sprint PCS to perform services for Sprint PCS are not employees or agents of VMU, and Sprint PCS assumes full responsibility and
liability for their acts and omissions, including compliance by its staff (including contractors) with this Agreement, applicable federal, state and local laws, regulations, and judicial or regulatory orders, and relevant industry standards. All
staff will be employed or contracted for at Sprint PCS’s sole expense. 
 9.7. Conversion of VMU Phones 
 Neither Sprint nor its Affiliates will activate or add to its billing data (i) a new (never activated) VMU branded device, (ii) an activated VMU branded device
in an End User account, or (iii) a deactivated VMU branded device that was in an activated End User account at any time during the 60 days prior to Sprint PCS’s request for activation. 
 Neither Sprint nor its Affiliates will specifically target market customers to switch from VMU’s or any of its Affiliates’ services to Sprint PCS’ or any
of its Affiliates’ services except as specifically agreed in writing by the Parties. 
  

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 9.8. Non Solicitation 
 Sprint PCS shall not solicit for employment any employee of VMU or its Affiliates, without the consent of VMU; provided, however, that this Section 9.8 shall not preclude Sprint PCS from interviewing, discussing
terms of employment with or hiring an employee of VMU or any of its Affiliates that responds to any generalized search by Sprint PCS for employees through media advertisements, employee search firms or otherwise. 
 9.9. VMU Board of Directors Participation 
 During the term of this Agreement (not including any Transition Period), unless Sprint PCS otherwise has the right, other than pursuant to this Agreement, to designate one or more members of the Board of Directors (or similar governing
body) of VMU then Sprint PCS will have the right to designate one member of the Board of Directors (or similar governing body) of VMU. At Sprint PCS’ sole discretion, it may waive its designation right altogether or alternatively designate a
observer to the Board of Directors of VMU who will not have a vote on the Board of Directors, but who will have the ability to participate in the meetings of the Board of Directors, consult with VMU management and periodically examine the books and
records of VMU. 
 10. Audit 
 10.1.
General 
 Each Party will maintain complete and accurate records for at least three years following the period covered by such records and for 12
months following expiration of all post-agreement payment obligations of either Party. Such records will be kept in a consistent form to substantiate the monetary payment, reporting and other obligations under this Agreement other than as described
in Section 10.3 below. Each Party may, upon reasonable prior written notice, conduct during the other Party’s regular business hours, and in accordance with applicable law and reasonable security requirements (including, but not limited
to, the confidentiality and non-disclosure obligations particular to the Formula), audits of those records so maintained. Either Party may seek a general audit of the other Party no more than once every 12 months and only for all or a portion of the
3 year time period immediately preceding the audit request. In addition, each Party may seek limited specific audits of specific disputed payment and reporting obligations, including, if applicable, obligations related to Roaming, no more than once
every 3 months. These audit rights survive until the period ending 12 months following conclusion or expiration of all post-agreement payment obligations of all Parties under this Agreement. The Parties agree that this Section does not supersede the
confidentiality and non-disclosure obligations particular to the Formula. 
 10.2. Procedure 
 Audits under Section 10.1 will be conducted as follows: (a) the audited Party may require the auditing Party’s employees or agents to conduct the audit on
the premises of the audited Party, (b) the audited Party may have an employee or representative present at all times during the audit, (c) the auditing Party will not have direct access to the audited Party’s computer database without
the consent of the 

  

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audited Party, and (d) the auditing Party may review only those specific records of the audited Party directly related to the obligations of the audited
Party under this Agreement and not those records specifically identified as highly confidential and not subject to disclosure under any instances, as described in Schedules 1.0 and 1.1 of this Agreement. Any representative or agent of a Party that
participates in the audit may be required to execute and deliver a non-disclosure agreement in favor of the Party being audited. The audited Party will cooperate in good faith with the auditing Party. The auditing Party will pay all costs incurred
by either Party in connection with those audits, including a reasonable charge for the services of any employee of the audited Party directly involved in the audit. The audited Party may have the results of any audit reviewed by the audited
Party’s internal auditing staff or by the audited Party’s independent accountants who then audit the financial statements of the audited Party (“Independent Auditors”). The audited Party will bear all costs of an internal or
Independent Auditors’ review. Following an audit, the audited Party must use its commercially reasonable efforts to correct promptly any deficiencies related to performance uncovered by an audit. 
 10.3. Cost of Service Formulas 
 This
Section 10 does not apply to verification or audit of payment, reporting and other obligations related to the Cost of Service Formulas. The terms of such verification or audit are set forth in Schedules 1.0 and 1.1 of this Agreement.

 11. Limitations of Warranties and Liabilities 
 11.1. No Warranties 
 EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, SPRINT PCS MAKES NO WARRANTIES, EXPRESS OR IMPLIED,
REGARDING THE PCS SERVICE OR, IF APPLICABLE, ANY EQUIPMENT, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN
ANY OTHER DOCUMENT. SPRINT PCS DOES NOT AUTHORIZE ANYONE TO MAKE ANY WARRANTY ON ITS BEHALF AND VMU SHOULD NOT RELY ON ANY SUCH STATEMENT. VMU EXPRESSLY ACKNOWLEDGES THAT SPRINT PCS IS NOT THE MANUFACTURER OF ANY EQUIPMENT. 
 11.2. Limitations on Liability 
 11.2.1. Direct Damages 
 EXCEPT WITH REGARD TO PAYMENT OBLIGATIONS AND AS OTHERWISE PROVIDED IN THIS AGREEMENT, EITHER PARTY’S ENTIRE
LIABILITY FOR DIRECT DAMAGES TO THE OTHER PARTY WILL NOT EXCEED AN AMOUNT EQUAL TO $10,000,000. 
  

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 11.2.2. No Liability for Certain Special and Indirect Damages 
 EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, NEITHER PARTY IS LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS
OF PROFITS, ARISING OUT OF THE PERFORMANCE OF THIS AGREEMENT. 
 11.2.3. Willful Misconduct 
 THE LIMITATIONS OF LIABILITY SET FORTH IN SECTIONS 11.2.1 AND 11.2.2 ABOVE DO NOT APPLY TO CLAIMS ARISING FROM THE WILLFUL MISCONDUCT OF A PARTY. 
 11.2.4. Gross Negligence 
 THE LIMITATIONS OF
LIABILITY SET FORTH IN SECTION 11.2.1 ABOVE DO NOT APPLY TO CLAIMS ARISING FROM THE GROSS NEGLIGENCE OF A PARTY. 
 12. Intentionally Omitted

 13. Insurance 
 VMU must, during the term (and
including any Transition Period) of this Agreement and at its sole expense, obtain and keep in force, the following insurance: (a) Commercial General Liability Coverage in limits not less than $3,000,000 for each occurrence (combined single
limit), with Sprint PCS named as additional insured in the policy as its interests may appear; and (b) Worker’s Compensation and Employer’s Liability insurance. The provision of insurance required in this Agreement will not be
construed to limit or otherwise affect the liability of VMU to Sprint PCS. 
 14. Indemnification 
 14.1. General Cross-Indemnification for Third Party Claims 
 Each Party (the “Indemnitor”) agrees to indemnify and defend the other Party and its directors, officers, employees, agents, successors and assigns (separately and collectively, the “Indemnitee”)
from and against any third party liabilities, claims, demands, losses, damages, costs and expenses (including reasonable attorneys’ fees) for property damage or personal injury which may be assessed against or incurred by the Indemnitee
relating to or arising out of: 
 (a) any negligent, grossly negligent or intentional misconduct or omission of the Indemnitor or its directors, officers,
employees, agents, successors and assigns in connection with the provision or use of PCS Service under this Agreement; or 
 (b) any violation by the
Indemnitor or its directors, officers, employees, agents, successors and assigns of 47 U.S.C. Section 222. 
 except (in each case) to the extent
caused by the Indemnitee. The limitations in Section 11 do not apply to violations of this Section 14.1. 
  

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 14.2. Additional Indemnification by VMU 
 VMU agrees to indemnify and defend Sprint PCS and its directors, officers, employees, agents, successors and assigns (separately and collectively, the “Sprint PCS
Indemnitee”) from and against all liabilities, claims, demands, losses, damages, costs and expenses (including any penalty, interest and reasonable attorneys’ fees) which may be assessed against or incurred by the Sprint PCS Indemnitee
relating to or arising out of: 
 (a) libel, slander, infringement of copyright, or invasion of privacy from the material transmitted over the Facilities by
VMU or End Users; 
 (b) any wiretapping or other surveillance that VMU may direct Sprint PCS to undertake; 
 (c) infringements of the Sprint PCS Indemnitee’s intellectual property rights by VMU, its End Users, contractors, agents, and other persons or entities acting for
or on behalf of VMU; 
 (d) any third party formal or informal complaint, including complaints regarding the coverage maps, performance, quality,
functionality or any other claim related to Virgin Mobile Service provided to End Users; 
 (e) VMU’s failure to accurately calculate or bill
appropriate taxes on services and usage purchased from Sprint PCS and resold to End User; 
 (f) VMU’s failure to remit Taxes and other levies by
Governmental Authorities or under Governmental Authorities’ order on a timely and accurate basis; or 
 (g) any claims from its End Users or any third
party relating to any unauthorized use or publication of any End User’s MIN or other personal information or for any claims relating to content accessed using the Sprint PCS Data Services; 
 in each case, provided that the Sprint PCS Indemnitee did not cause such liabilities, claims, demands, losses, damages, costs or expenses to arise. 
 The limitations in Section 11 do not apply to violations of this Section 14.2. 
 14.3. Additional Indemnification by Sprint PCS 
 Sprint PCS agrees to indemnify and defend VMU and its
directors, officers, employees, agents, successors and assigns (separately and collectively, the “VMU Indemnitee”) from and against all liabilities, claims, demands, losses, damages, costs and expenses (including any penalty, interest and
reasonable attorneys’ fees) which may be assessed against or incurred by the VMU Indemnitee relating to or arising out of: 
 (a) Sprint PCS willful
misconduct with respect to wiretapping or other surveillance that VMU may direct Sprint PCS to undertake in accordance with the terms and provisions of this Agreement; and 
 (b) claims of VMU infringement of intellectual property rights related to the products or services provided to VMU by Sprint PCS under this Agreement. in each case, provided that the VMU Indemnitee did not cause such
liabilities, claims, demands, losses, damages, costs or expenses to arise. 
  

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 The limitations of Section 11 do not apply to violations of this Section 14.3. 
 15. Breach, Remedies and Early Termination of the Agreement 
 15.1. State of Default 
 If any of the following occur (each a “Default” and the Party triggering such Default a
“Breaching Party”): 
 (a) Sprint PCS or VMU fails to make a payment of money (other than any payment that is being disputed in good faith by VMU
under the applicable terms and provisions of this Agreement with respect to VMU disputes of amounts due and owing under this Agreement) which failure continues for more than 30 days after written notice from the other Party; 
 (b) Sprint PCS or VMU fails to comply with any material representation, warranty, obligation or covenant set forth in this Agreement, which failure (1) either
(A) continues for a period of more than 30 consecutive days after receipt of written notice from the non-breaching Party specifying the breach or (B) is of a nature to require more than 30 consecutive days (after receipt of notice from the
non-breaching Party specifying the breach) to cure and continues for a period of more than the longer of (x) 120 consecutive days or (y) the period reasonably required to cure and (2) is materially damaging to the other Party;

 (c) Sprint PCS or VMU or their respective permitted successors or assigns ceases to do business as a going concern; 
 (d) Sprint PCS or VMU is unable or admits its inability to pay its debts as they become due; or 
 (e) Sprint PCS or VMU institutes a voluntary proceeding, or becomes the subject of an involuntary proceeding which involuntary proceeding is not dismissed within 30 days, under any bankruptcy act, insolvency law or
any law for the relief of debtors, has a receiver appointed for the Party which appointment is not dismissed, vacated or stayed within 30 days, or executes a general assignment for the benefit of creditors; 
 then: 
 (i) if Sprint PCS is the Breaching Party, then VMU
may, upon written notice to Sprint PCS within 6 months of the expiration of any applicable cure period for such breach, terminate this Agreement, subject to the Transition Period described in Section 15.3 below; and 
 (ii) if VMU is the Breaching Party, then Sprint PCS may, at any time within 90 days of the expiration of any applicable cure period for such breach,
terminate this Agreement, subject to the Transition Period described in Section 15.3 below. 
  

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 15.2. Early Termination by Sprint PCS 
 15.2.1. Market Changes 
 Sprint PCS may terminate this
Agreement in its entirety without any liability by giving VMU at least 30 days’ prior written notice, if neither Sprint PCS nor any of its Affiliates is licensed by a Governmental Authority to provide PCS Service in all or a substantial part of
the Markets. Sprint PCS may delete a Market from Schedule 4.0 at any time without any liability by giving VMU at least 30 days prior written notice, if neither Sprint PCS nor any of its Affiliates is licensed by a Governmental Authority to
provide PCS Service in that Market. No Transition Period will apply to termination pursuant to this Section. 
 15.2.2. Change of Control

 VMU will provide Sprint PCS a written notice as soon as reasonably practicable if it enters into a transaction that, if consummated in accordance with
its terms, would constitute a Change of Control Event. If the Change of Control Event involves a Direct Strategic Competitor of Sprint PCS, then Sprint PCS may, during the period beginning with receipt of notice from VMU and ending 90 days following
the consummation of any such transaction, terminate this Agreement by providing written notice to VMU of its intention to terminate this Agreement and subject to a Transition Period described in Section 15.3.1(v) below. 
 15.2.3. Termination of Virgin Trademark License Agreement 
 VMU will provide Sprint PCS a written notice as soon as reasonably practicable upon VMU’s receipt of a notice of termination of the VTLA for Virgin Enterprises Limited related to an Adverse Change of Control (as such term is defined in
the VTLA) under the terms of the VTLA. Sprint PCS may, during the period beginning with receipt of notice from VMU and ending 90 days following receipt of such notice, terminate this Agreement by providing written notice to VMU of its intention to
terminate this Agreement subject to a Transition Period described in Section 15.3.2 (vi). 
 15.3. Transition Periods

 15.3.1 Transition Period Duration 
 Upon giving of notice of termination or the expiration of this Agreement, Sprint, at VMU’s (or its successor in interest) request, will continue to provide PCS Service to VMU for a Transition Period as described below (the
“Transition Period”), subject to the terms set forth below. At the end of the applicable Transition Period, Sprint may terminate PCS Service to VMU and the End Users on the Sprint Network without incurring any liability. 
 (i) If VMU is the Breaching Party, the Transition Period for termination under Sections 15.1(a) or 15.1(b) is 30 days after the date of notice of
termination by Sprint and no new End Users will be added on the Sprint Network after the date of the notice of termination. 
 (ii) If Sprint
PCS is the Breaching Party, the Transition Period for termination under Sections 15.1(a) or 15.1(b) is 24 months after the date of notice of termination by VMU and no new End Users will be added on the Sprint Network after the date of the notice of
termination. 
  

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 (iii) Regardless of the identity of the Breaching Party, the Transition Period for termination under
Sections 15.1(c), 15.1(d) or 15.1(e) is 24 months after the date of notice of termination by the non-breaching Party and no new End Users will be added on the Sprint Network after 60 days following of the notice of termination. 
 (iv) For termination of the Agreement or any Market under Section 15.2.1, there is no Transition Period. 
 (v) For termination under Section 15.2.2, the Transition Period is 24 months after the date of notice of termination by Sprint PCS and no new End
Users will be added on the Sprint Network after 60 days following of the notice of termination. 
 (vi) For termination under
Section 15.2.3, the Transition Period is 24 months after the date of notice of termination by Sprint PCS and no new End Users will be added on the Sprint Network following of the notice of termination. 
 15.3.2 Applicable Terms During Transition Period 
 Except as set forth below, this Agreement will remain in effect with respect to all VMU service offerings. 
 (i) Sections 2.7.1 and
2.7.2 will not apply during the applicable Transition Period. For the avoidance of doubt, at any time during the applicable Transition Period, VMU may acquire Mobile Voice and Data Services from, and transfer some or all of its End Users to a
network of another provider. 
 (ii) Sprint PCS’ obligation to provide new Core Network Services or Net Network-Connected Services in
Sections 2.2.2 and 2.3.2 will be limited such that Sprint PCS will only have the obligation to provide such new Core Network Services or New Network-Connected Services to the extent that it provides such service to other comparably situated
purchasers of its services. 
 (iii) During the applicable Transition Period, the price protection clause set forth in the Cost of Service
Formula will no longer apply. 
 (iv) During the applicable Transition Period, Sprint PCS will no longer have any obligations with regard to
development of Customized Services. 
 (v) If, during any Transition Period, there is a subsequent Default or other event giving rise to a
termination right under this Agreement, at the election of the non-breaching Party or the Party with termination rights under this Agreement, the Transition Period will be shortened to the Transition Period applicable to such subsequent Default or
other event. 
 15.4. Effect of Termination 
 Termination of this Agreement is without prejudice to any other right or remedy of the Parties under this Agreement. Termination of this Agreement for any cause does not release either Party from any 

  

 43 

 
existing liability or from any obligation that is drafted to survive the termination. VMU will remain responsible for its obligations to its agents and End
Users. Upon expiration, Sprint PCS may terminate PCS Service to VMU (or its successor in interest) and the End Users on the Sprint PCS Network without incurring any liability. 
 16. Restrictions on Transfer 
 16.1. Non-Transferable 
 Except as provided in Sections 16.2 and 16.3 below, during the term of this Agreement , VMU may not, either directly or indirectly, sell or otherwise transfer all or any
part of its End User accounts, unless the sale or other transfer is made with the prior written consent of Sprint PCS. 
 16.2.
Transition of Services to Successor Carrier 
 The restriction in Section 16.1 above does not apply with respect to the transition of services to
a successor carrier during any Transition Period provided that VMU remains such End Users service provider and continues its business as a going concern under the Virgin Mobile brand. 
 16.3. Right of First Offer 
 (a) If VMU wishes
to Transfer (defined below) all or any portion of its End User Accounts (the “Offered Accounts”), VMU shall deliver a written offer (the “Transfer Notice”) to Sprint PCS, certifying the date of its issuance and stating:
(i) a description of the Offered Accounts; and (ii) the Transfer Price (defined below) and other material terms upon which VMU proposes to transfer each of such Offered Accounts including, but not limited to, the period during which VMU is
subject to any limitation on its ability to market products or services to the End Users that are subject to such proposed transfer (or any comparable non-solicitation restriction). 
 (b) Sprint PCS shall have the right, but not the obligation, to elect to purchase all (but not less than all) of the Offered Accounts at the price and upon the terms contained in the Transfer Notice. In the event that
Sprint PCS shall elect to purchase the Offered Accounts, it shall deliver to VMU a written election to purchase the Offered Accounts within sixty (60) days from the date of receipt of the Transfer Notice, and the closing of the Transfer of the
Offered Accounts to Sprint PCS shall take place within ninety (90) days from the date of receipt of the Transfer Notice. 
 (c) If, upon the expiration
of the sixty (60) day notice period provided for in subsection (b) above, Sprint PCS shall not have made an election to purchase the Offered Accounts, the Right of First Offer shall expire as to that particular offer, but shall remain in
full force and effect with respect to all material modifications of that offer and all future offers. VMU shall have the right, except as provided in subsection (d) below, to Transfer all (but not less than all) of the Offered Accounts to any
Person or Persons, at a price and upon terms and conditions which are no less advantageous to VMU than those contained in the Transfer Notice, if that Transfer takes place in accordance with the terms of a definitive agreement or agreements (subject
solely to requisite regulatory approvals) entered into not later than ninety (90) days after the expiration of the sixty (60) day period provided for in subsection (b) above. 
  

 44 

 (d) The term “Transfer” means any sale, exchange, assignment, transfer, gift or other disposition of any kind,
whether voluntary, involuntary or by operation of law. The term “Transfer Price” shall mean the price stated in a Transfer Notice (which price must be payable solely in cash) and is the cash price at which VMU offers to Transfer each of
its Offered Accounts. 
 17. Dispute Resolution 
 In the
event there is a dispute between the Parties regarding the interpretation of this Agreement or either Party’s performance under this Agreement (a “Dispute”), the Parties shall attempt to resolve such Dispute in accordance with this
Section 17. 
 (a) Upon written request of either Party (the “Resolution Request”), the Dispute shall be submitted for resolution to a dispute
resolution team which shall be comprised of two representatives from each Party (the “Integrated Action Team”). The Integrated Action Team shall meet as often as necessary to gather and furnish to each Party all information with respect to
the matter in issue, which is appropriate and germane for its resolution. The Integrated Action Team shall discuss the Dispute and negotiate in good faith in an effort to resolve the Dispute without the necessity of further action relating thereto.
During the course of such negotiation, all reasonable requests made by one Party to the other for non-privileged information reasonably related to this Agreement (other than information that is subject to heightened confidentiality and
non-disclosure protections under the terms and provisions of Schedule 1.0 and 1.1 of this Agreement) and the Dispute will be honored in order that such Party may be fully advised of the other’s position. The specific format for such discussions
will be left to the discretion of the Integrated Action Team, but may include the preparation of agreed upon statements of fact or written statements of position furnished by each Party to the other. 
 (b) If the Dispute is not fully resolved by the Integrated Action Team within fifteen (15) business days after the delivery of the Resolution Request, then either
of the Parties may request that the Dispute be escalated to the Designated Officers of the Parties (the “Escalation Request”), after which, within fifteen (15) business days of the delivery of the Resolution Request, each of the
Parties shall prepare and send to the Designated Officers of the Parties, respectively, a memorandum stating its understanding of the matter subject to the Dispute, its position in relation to such matter, its reasons for taking such position and
any proposals for resolving the Dispute. The Designated Officers shall as soon as reasonably practicable (within at least fifteen (15) business days after the Dispute has been referred to such Designated Officers or as such Designated Officers
shall otherwise agree) meet (in person or by telephone) to discuss the Dispute and use their reasonable best efforts to resolve it. For purposes of this Section 17, “Designated Officers” shall mean (i) with respect to Sprint PCS,
Sprint PCS’ Vice President of Strategic Partnerships or such other officer as may be designated by Sprint PCS and (ii) with respect to VMU, VMU’s CEO or President or such other officer as may be designated by VMU. 
 (c) Nothing in this Section 17 is intended to modify, expand or limit either Party’s substantive rights under any conflicting provisions of this Agreement. The
purpose of this Section 17 is to outline a process whereby disputes or misunderstanding related to other provisions of this Agreement can be 

  

 45 

 
resolved. Notwithstanding anything in this Agreement to the contrary, either Party may resort to court action for injunctive relief at any time if the
dispute resolution process set forth in this Section would permit or cause irreparable damage to such Party due to delay arising out of the dispute resolution process. 
 18. Intellectual Property Rights 
 18.1. Property Rights for Preexisting and Independently
Developed Intellectual Property. 
 VMU retains all right, title and interest in and to the materials, services, equipment, drawings, software or data
that are preexisting or that are developed by VMU outside of the scope of this Agreement. Sprint PCS retains all right, title and interest in and to the existing Facilities, Handset Proprietary Information, Core Network, Core Network Services,
Network-Connected Elements, Network-Connected Services and Sprint PCS Web Services, and any other services, materials, equipment, drawings, software or data that are preexisting or that are developed by Sprint PCS outside of the scope of this
Agreement. 
 18.2. Property Rights for Facilities, Handset Proprietary Information, Core Network, Core Network Services and Sprint PCS
Web Services 
 As between Sprint PCS and VMU, for purposes of this Agreement, Sprint PCS owns (i) the Facilities, Handset Proprietary
Information, Core Network, Core Network Services and Sprint PCS Web Services; (ii) all related improvements, modifications and derivative works to the Facilities, Handset Proprietary Information, Core Network, Core Network Services and Sprint
PCS Web Services including all new Core Network Services and Customized Services that are Core Network Services, and (iii) all intellectual property rights in and relating to any of the foregoing. Sprint PCS will retain ownership rights to the
Customized Services that are Core Network Services, including those services paid for by VMU. If VMU devises, develops, conceives or otherwise creates any work product to be integrated into the Facilities, Handset Proprietary Information, Core
Network, Core Network Services or Sprint PCS Web Services, VMU assigns and agrees to assign to Sprint PCS all such work product and all intellectual property rights in and relating to such work product. Nothing in this Agreement, will be construed
to convey to or grant VMU any intellectual property rights in the Facilities, Handset Proprietary Information, Core Network, Core Network Services or the Sprint PCS Web Services, including any new Core Network Services or any Customized Services
that are Core Network Services. VMU acknowledges that it shall not at any time do or omit to do anything which is likely to prejudice Sprint PCS rights in the Facilities, Handset Proprietary Information, Core Network, Core Network Services or the
Sprint PCS Web Services. The term “intellectual property rights” means any right existing now or in the future, under patent law, copyright law, trade secret law, trademark law, unfair competition law, publicity rights law, privacy rights
law, and any similar proprietary right. Sprint PCS has the right to patent or otherwise protect such work product and intellectual property rights as it sees fit. 
  

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 18.3. Property Rights for Network-Connected Elements and Network-Connected Services

 As between Sprint PCS and VMU, for purposes of this Agreement, Sprint PCS owns (i) the Network-Connected Elements, the existing and new
Network-Connected Services, and the Customized Services that are Network-Connected Services provided by Sprint PCS pursuant to 2.5.2(a) and 2.5.2(b); (ii) all related improvements, modifications and derivative works to such elements and
services; and (iii) all intellectual property rights in and relating to any of the foregoing. Sprint PCS will retain ownership rights to any Customized Services that are Network-Connected Services, including those services paid for by VMU in
accordance with Sections 2.5.2(a) and 2.5.2(b). As between Sprint PCS and VMU, for purposes of this Agreement, VMU owns any Network-Connected Services which are not developed by Sprint PCS as described in Section 2.5.2 (c) and VMU grants
to Sprint PCS a perpetual, non-exclusive worldwide license to use such intellectual property if Sprint PCS elects to use such Network-Connected Services pursuant to the last sentence of Section 2.5.2(c). Subject to the license in the
immediately preceding sentence, VMU will retain ownership of any related improvements, modifications and derivative works to VMU’s Customized Services that are not Network-Connected Services (not provided by Sprint PCS), and all intellectual
property rights in and relating to VMU’s Customized Services that are Network-Connected Services (not provided by Sprint PCS). 
 18.4. License of Intellectual Property from Sprint PCS to VMU 
 In order to achieve the intended benefits of the various Services
provided by Sprint PCS to VMU, to the extent that VMU may need any intellectual property owned, licensed or leased by Sprint PCS, Sprint PCS agrees to grant, and hereby grants to VMU, a non-exclusive worldwide license to use such intellectual
property in accordance with the terms and conditions of this Agreement. In order to achieve the intended benefits of the various Services provided by VMU to Sprint PCS, to the extent not otherwise covered in this Section 18 and to the extent
that Sprint PCS may need any intellectual property owned, licensed or leased by VMU, VMU agrees to grant, and hereby grants to Sprint PCS, a non-exclusive worldwide license to use such intellectual property in accordance with the terms and
conditions of this Agreement. 
 18.5. Intellectual Property Rights for Non-Network Services 
 Ownership of and usage rights for the intellectual property related to Non-Network Services provided under this Agreement will be as specified in the written agreement or
addendum described in Section 2.4. If such written agreement or addendum does not include provisions regarding ownership of the intellectual property rights, the intellectual property rights for the Non-Network Services, as between Sprint PCS
and VMU, will be retained by the party providing the Non-Network Services and will be licensed to the party receiving such services for use as contemplated by the written agreement or addendum. In order to achieve the intended benefits of the
various Non-Network Services provided by either party to the other under this Agreement, to the extent that a party may need any intellectual property owned, licensed or leased by the other, such owner, licensor or lessor agrees to grant, and hereby
grants to the other, a non-exclusive worldwide license to use such intellectual property in accordance with the terms and conditions of this Agreement and any third-party agreements, if any, which are directly related to such Non-Network Services.

  

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 18.6. Systems and Network Interfaces 
 Sprint PCS will own and retain intellectual property rights to any systems or network interface provided by Sprint PCS to VMU under the terms of this Agreement. If VMU
devises, develops, conceives or otherwise creates any work product to be integrated into Sprint PCS’ systems or Sprint PCS’ network interfaces, VMU assigns and agrees to assign to Sprint PCS all such work product and all intellectual
property rights in and relating to such work product. 
 19. Confidentiality 
 The Mutual Non-Disclosure Agreement between Sprint PCS and VMU attached hereto as Schedule 7.0 is hereby made a part of this Agreement. The term of such Mutual Non-Disclosure Agreement is extended to be coterminous
with this Agreement (and including any applicable Transition Period); provided that during any Transition Period VMU may make such disclosures of information related to the End Users as are reasonably necessary to negotiate an agreement with a
Person other than Sprint PCS for the provision of Mobile Voice and Data Services. Any such disclosures to Persons other than Sprint PCS must be made under a written non-disclosure agreement at least as restrictive as the Non-Disclosure Agreement
attached hereto as Schedule 7.0 and in no event will such disclosure include any pricing under this Agreement, any other financial information of Sprint PCS, any information related to Facilities, Handset Proprietary Information, Core Network, Core
Network Services or the Sprint PCS Web Services, or any other information that is not necessary for the transition of End User accounts. 
 20. Assignment

 Neither Party may assign this Agreement without the other’s prior written consent, which consent will not be unreasonably withheld; provided
however, that (i) either Party may assign this Agreement to its Affiliate; (ii) either Party may assign this Agreement to a successor to the extent necessary as set forth in the agreements related to the Reorganization; (iii) subject
to Section 15.2.2, either Party may assign this Agreement to any Person that purchases all or substantially all of such Party’s assets (other than an assignment by VMU to a Direct Strategic Competitor of Sprint PCS); provided, that such
asset purchase is done in good faith and not as a means to evade the assignment restrictions of this Section 20; and (iv) subject to Section 15.2.2, the term “assign” does not include a change of a control of a Party or any
Affiliate of such Party. An assignor of any permitted assignment will provide the other Party written notice of such permitted assignment and, unless agreed in writing the assignor is not relieved of its obligations under this Agreement by any
permitted assignment. 
 21. Equitable Relief 
 The
Parties agree that an award of money damages may be inadequate for a breach of certain provisions of this Agreement and that any such breach may cause the non-breaching Party irreparable harm. Accordingly, in addition to any other remedies that may
be available at law or in equity, the Parties acknowledge that the non-breaching Party may be entitled to equitable relief, including specific performance and injunctive relief. 
  

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 22. General Provisions 
 22.1. Notices and Inquiries 
 All notices and inquiries be in writing and mailed (certified or registered mail,
postage prepaid, return receipt requested) or sent by hand or overnight courier, (with acknowledgment received by the courier), or by facsimile (with facsimile acknowledgment) addressed as follows: 
 If to VMU: 
 Virgin Mobile
USA, LLC 
 10 Independence Blvd. 
 Warren, NJ 07059 
 Attention: General Counsel 
 With a copy to: 
 Virgin USA Inc. 
 65 Bleecker Street, 6th Floor 
 New York, NY 10012 
 Attention: Frances Farrow 
 If to Sprint PCS: 
 Sprint Spectrum L.P. (d/b/a Sprint) 
 6180 Sprint Parkway 
 KSOPHH0312 – 3A123 
 Overland Park, KS 66251 
 Attention: Vice President, Strategic Partners 
 With a copy to: 
 Sprint Spectrum L.P. (d/b/a Sprint) 
 6450 Sprint Parkway 
 KSOPHT0101-Z2525 
 Overland Park, KS 66251 
 Attention: V.P., Law, Marketing and Sales 
 Any Party may from time-to-time specify a different address by notice to the other Party. Any notice is considered given as of the date delivered. 
 22.2. Construction 
 The definitions in this Agreement apply equally to both the singular and plural forms of
the terms defined. Whenever the context requires, any pronoun includes the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” are deemed to be followed by the phrase
“without limitation.” Unless the context otherwise requires, any references to any agreement, schedule or exhibit or to any other instrument or statute or regulation are to it as amended and 
  

 49 

 supplemented from time to time (and, in the case of a
statute or regulation, to any corresponding provisions of successor statutes or regulations). Unless otherwise expressly stated, any reference in this Agreement to a “day” or “month” or number of “days” or
“months” is a reference to a calendar day or month or number of calendar days or months. If any action or notice is to be taken or given on or by a particular calendar day, and that calendar day is not a business day for Sprint PCS or VMU
then the action or notice will be deferred until, or may be taken or given on, the next business day. This Agreement will be construed simply according to its fair meaning and not strictly for or against any Party. The Parties acknowledge and agree
that each of them has been represented by counsel and have fully considered the language, terms and provisions of this Agreement and, as such, no rule of construction requiring interpretation against the draftsperson will apply in the interpretation
of this Agreement. If there are any inconsistencies between the Operations Manual and this Agreement, this Agreement controls. 
 22.3.
Survival 
 The provisions of Sections 7.5, 7.7, 9.4, 11, 14, 15.3, 15.4, 18 and 19 will survive the termination of this Agreement, in addition to any
other provision that by its content is intended to survive termination of this Agreement. 
 22.4. Headings 
 The article and other headings contained in this Agreement are for reference purposes only. 
 22.5. Severability 
 Except as specifically provided in this Agreement, every provision of this Agreement is
intended to be severable unless expressly indicated otherwise (e.g. see Section 2). If any term or provision of this Agreement is unenforceable for any reason whatsoever, that term or provision will be enforced to the maximum extent
permissible so as to effect the intent of the Parties, and the unenforceability will not affect the validity of the remainder of this Agreement. 
 22.6. Governing Law; Venue 
 This Agreement will be governed by and construed in accordance with the laws of the State of Delaware.
Each Party to this Agreement hereby irrevocably and unconditionally, with respect to any dispute (which after good faith efforts by the interested parties to resolve such dispute in a mutually satisfactory manner, including, the dispute resolution
provisions of this Agreement, has not been so resolved) arising under, or in connection with, this Agreement submits for itself and its property in any legal action or proceeding relating to this Agreement, or for recognition and enforcement of any
judgment in respect thereof, to the exclusive general jurisdiction of the Courts of the State of Delaware, the courts of the United States of America for the District of Delaware, and appellate courts from any thereof (and covenants not to commence
any legal action or proceeding in any other venue or jurisdiction) and consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding
in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same. 
  

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 22.7. Waiver of Jury Trial 
 EACH PARTY TO THIS AGREEMENT WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ALL CLAIMS OR CAUSES OF ACTION (INCLUDING COUNTERCLAIMS) RELATED TO OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY. THIS WAIVER APPLIES TO ALL SUBSEQUENT AMENDMENTS OF THIS AGREEMENT. 
 22.8. Counterpart Execution 
 This Agreement may be executed in any number of counterparts with the same effect as if each Party had
signed the same document. All counterparts will be construed together and will constitute one agreement. 
 22.9. Entire Agreement;
Amendments 
 This Agreement sets forth the entire agreement and understanding between the Parties as to the subject matters covered herein and
supersedes all prior agreements, oral or written, and other communications between the Parties relating to the subject matter of this Agreement. Except as otherwise provided in this Agreement, no amendment or modification of this Agreement will be
valid or binding upon the Parties unless made in writing and signed by the duly authorized representatives of both Parties. 
 22.10.
Waivers; Remedies 
 The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively
or prospectively) by the Party entitled to enforce the term, but any waiver is effective only if in a writing signed by the Party against which the waiver is to be asserted. Except as otherwise provided in this Agreement, no failure or delay of any
Party in exercising any right under this Agreement will operate as a waiver thereof, nor will any single or partial exercise of any right, or any abandonment or discontinuance of steps to enforce the right, preclude any other or further exercise
thereof or the exercise of any other right. 
 22.11. Force Majeure 
 If the performance of this Agreement (other than the payment of money) is interfered with by any circumstance beyond the reasonable control of the Party affected, the
Party affected by the force majeure is excused on a day-by-day basis to the extent of the interference, if the Party notifies the other Party as soon as practicable of the nature and expected duration of the claimed force majeure, uses all
commercially reasonable efforts to avoid or remove the causes of nonperformance and resumes performance promptly after the causes have been removed. A “force majeure” under this 

  

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Section includes (i) acts of God, such as fire, flood, earthquake or other natural cause; (ii) terrorist events, riots, insurrections, war or
national emergency; (iii) strikes, boycotts, lockouts or other labor difficulties, (iv) the lack of or inability to obtain permits or approvals, necessary labor, materials, energy, components or machinery, telecommunication line facilities
or MIN’s, and (v) judicial, legal or other action of any Governmental Authority. 
 22.12. Compliance with Laws

 Each Party will comply with all applicable material federal, state, county and local laws, rules, regulations and orders that apply to it, its operations
and facilities. 
 This Agreement is executed by the parties as of the Effective Date. 
  

									
	SPRINT SPECTRUM L.P.	 		 	VIRGIN MOBILE USA, LLC
					
	By:	 	  
	 		 	By:	 	  

					
	Name:	 	  
	 		 	Name:	 	  

					
	Its:	 	  
	 		 	Its:	 	  

  

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 Schedule 1.0 
 Cost of Service Formula (Per Minute Pricing) 
 1) Cost of Service Formula. The Cost of Service Formula
(copy attached) is subject to the non-disclosure agreement described in Section 19 above. The Cost of Service Formula is not specific to VMU and includes (except as specifically provided therein) the costs that will be used to determine
VMU’s prices regardless of whether VMU or its End Users utilize the services or functionality associated with such costs. The Cost of Service Formula (and fixed pricing described in the Cost of Service Formula) includes the methodology for
pricing two types of services, generally described as follows: 
  

	(a)	Home Service Usage – Use of a network associated with a MIN that is provisioned on that network. There are two types of Home Service Usage:

 (i) Sprint PCS Home Service Usage: Use of the Sprint PCS Network (not including any Service Provider Affiliate service
areas) associated with a MIN that is provisioned on the Sprint PCS Network (not including any Service Provider Affiliate service areas). This pricing is determined under the Cost of Service Formula, using a variable margin as described below.

 (ii) Sprint PCS Service Provider Affiliate Home Service Usage: Use of a Sprint PCS Service Provider Affiliate network associated
with a MIN that is provisioned on that Sprint PCS Service Provider Affiliate network. This pricing is determined under the Cost of Service Formula, using a fixed margin as described below. 
 (b) Fixed Rate and Other Pricing – This is the pricing described in Section VI of the Cost of Service Formula and the Services Agreement that includes, but
is not limited to, charges for travel (use of a network associated with a MIN that is not provisioned on that network). 
 2) Reporting. To
help control the potential dissemination of critical Sprint PCS proprietary financial information, the actual results that are included in the Cost of Service Formula (from which the prices are derived) will be disclosed only as aggregate numbers
(applicable prices to be included in an Airtime Pricing Matrix in the form attached hereto as Schedule 1.0 and 1.1 / Exhibit A) and only to a limited number of VMU employees (listed in Schedule 1.0 and 1.1 / Exhibit B or their successors) that need
to know such information and that have signed individual acknowledgements of their non-disclosure obligations in the form attached hereto as Schedule 1.0 and 1.1 / Exhibit C. 
 3) Verification  
 (a) [Intentionally left blank] 
 (b) Ongoing Verification. If VMU questions Sprint PCS’ calculation of its actual Cost of Service for MOU based airtime services and SMS messages as
outlined in Sections 7.2.1 (b) and 7.2.2 (b) of this Agreement, VMU may request that Sprint PCS’ outside auditor, at the cost of VMU, examine 

  

 53 

 
Sprint PCS’ assertion that it complied with the requirements of the PCS Services Agreement in its calculation of its actual Cost of Service for MOU
based airtime services and SMS messages as outlined in Sections 7.2.1 (b) and 7.2.2 (b) of this Agreement for the preceding year. Based upon its examination, the auditor will verify that Sprint PCS’ assertion that it complied with the
aforementioned requirements for the aforementioned period is fairly stated, in all material respects. If inaccuracies are discovered, the Parties will take corrective action, which action, if necessary, will include escalation under Section 17
of this Agreement. 
 (c) Procedures. The following procedures will apply to any verification activities described in this Section 3:

 (i) VMU must request verification under subsection (b) above prior to the later
of (A) the 15th day of March of the year following the year subject to verification; or (B) 15 days
following VMU’s receipt of the report setting forth the difference, if any, determined by Sprint PCS under Section 7.2.1(b) or 7.2.2(b), as the case may be. 
 (ii) VMU will not have direct access to Sprint PCS’ information databases without the consent of Sprint PCS. 
 (iii) VMU acknowledges that it will not be given access to critical Sprint PCS proprietary financial information as a result of such verification. 
 (iv) Sprint PCS will cooperate in good faith throughout the verification process. 
  

 54 

	I.	Airtime Cost per Minute of Use (MOU). 

  

	A.	Original Airtime Cost of Service Formulas 

 Except as set forth in
Section I.B below, the formulas set forth below in this Section I.A will be used to determine VMU’s Cost of Service under the PCS Services Agreement. For avoidance of doubt, the formulas set forth below in this Section I.A will be used to
determine VMU’s Cost of Service in February 2007 to compare Sprint PCS’ actual Cost of Service for MOU based airtime services during 2006 with the rates charged to VMU during 2006, as described in Section 7.2.1(b) of the PCS Services
Agreement. 
 Peak MOU Cost Calculation 
 [Total Wholesale Specific Operating Costs x (1+WACC) 
 Total Billed Wholesale MOUs 
 + 
 Wholesale Specific Depreciation and
License Amortization x ( * ) x (1+WACC) 
 Total Billed Wholesale Peak MOUs 
 + 
 Total Network Service-Related Operating Costs x (1+WACC) 
 Total Billed MOUs on Network 
 + 
 Network Depreciation and License Amortization x ( * ) x (1+WACC)] 
 Total Billed Peak MOUs 
 x 
 (1+ Profit Margin %) 
 Off-Peak MOU Cost Calculation 
 [Total Wholesale Specific Operating Costs x (1+WACC) 
 Total Billed Wholesale MOUs 
 + 
 Wholesale Specific Depreciation and License Amortization x ( * ) x (1+WACC) 
 Total Billed Wholesale
Off-Peak MOUs 
 + 
 Total
Network Service-Related Operating Costs x (1+WACC) 
 Total Billed MOUs on Network 
 + 
 Network Depreciation and License Amortization x ( * ) x (1+WACC)] 

Total Billed Off-Peak MOUs 
 x 

(1+ Profit Margin %) 
  

 55 

 B. Alternate Airtime Cost of Service Formulas The formulas set forth below in this Section I.B will only be used
to determine VMU’s Cost of Service under the PCS Services Agreement as follows: 
 (i) in February 2007, and in February of each
calendar year thereafter, the formulas in this Section I.B will be used to adjust the Airtime Pricing Matrix for the next three years (the calendar year in which the adjustment is made and the next two years) to reflect any revised estimates of
Sprint PCS’ Cost of Service for MOU based airtime services, as described in Section 7.2.1(c) of the PCS Services Agreement; 
 (ii) for each calendar year commencing in 2007 during which VMU achieves the minimum required Total Qualifying MOUs as set forth in Section II.B(ii)(a) below, the formulas in this Section I.B will be used in February of the
subsequent calendar year to compare Sprint PCS’ actual Cost of Service for MOU-based airtime services during the just-completed calendar year with the rates charged to VMU during the just-completed calendar year, as described in
Section 7.2.1(b) of the PCS Services Agreement. By way of example, if VMU achieves * Total Qualifying MOUs during 2007, the formulas in Section I.B below will be used in February 2008 to compare Sprint PCS’ actual Cost of Service for
MOU based airtime services during 2007 with the rates charged to VMU during 2007; 
 Peak MOU Cost Calculation 
 [Total Wholesale Specific Operating Costs x (1+WACC) 
 Total Billed Wholesale MOUs 
 + 
 Wholesale Specific Depreciation and License Amortization x ( * ) x (1+WACC) 
 Total Billed Wholesale
Peak MOUs 
 + 
 Total Network
Service-Related Operating Costs x (1+WACC) 
 Total Billed MOUs on Network 
 + 
 Network Depreciation and License Amortization x ( * ) x (1+WACC)] 

Total Billed Peak MOUs 
 x 
 (1+ Profit Margin %) 
 Off-Peak MOU Cost
Calculation 
 [Total Wholesale Specific Operating Costs x (1+WACC) 
 Total Billed Wholesale MOUs 
 + 
 Wholesale Specific Depreciation and License Amortization x ( * ) x (1+WACC) 
  

 56 

 Total Billed Wholesale Off-Peak MOUs 
 + 
 Total Network Service-Related Operating Costs x (1+WACC) 
 Total Billed MOUs on Network 
 + 
 Network Depreciation and License Amortization x ( * ) x (1+WACC)] 
 Total Billed Off-Peak MOUs 
 x 
 (1+ Profit Margin %) 
  

	II.	MOU Calculations 

  

	A.	Total Billed MOUs on Network: 

  

	 	•	 	 Sprint PCS’ reported total billed minutes of use (“MOU”), voice and data usage measured and billed in minutes, on the Sprint PCS Network but not
including minutes used on Sprint PCS Service Provider Affiliate networks. 

  

	 	•	 	 Billed MOUs may not include certain categories of network MOUs (e.g.: customer care MOUs and 911 MOUs) when data is not readily available under Sprint PCS’
standard reporting packages and procedures. As long as such category of MOUs is not included in Total Billed MOUs on Network, the same category of MOUs used by VMU End Users will not be charged to VMU (i.e.: 911 Emergency calls may not be included
in Total Billed MOUs on Network) except for those charges specifically described in subsection VI below. As long as Sprint PCS does not include 911 MOUs in the calculation of Total Billed MOUs on Network, VMU will not be charged for its End
Users’ 911 usage.) 

  

	 	•	 	 Sprint PCS will calculate the Total Billed MOUs on Network for all voice and/or data customers, including Sprint PCS branded and unbranded Customers and VMU End
Users. 

  

	 	•	 	 Rounding procedures for calculating MOUs will be consistently applied for all billing and pricing calculations. 

  

	 	•	 	 Total Billed MOUs on Network is equal to the sum of Total Billed Peak MOUs and Total Billed Off-Peak MOUs 

  

	B.	Total Billed Peak MOU’s: 

 That portion of Sprint PCS’
Total Billed MOUs on Network that are used during Sprint PCS’ then defined peak period, as below and reported by Sprint PCS in the normal course of its business. 
 (i) [Intentionally Omitted] 
  

 57 

 (ii) Commencing with 2007 and each calendar year thereafter, subject to the conditions set forth
below in this Section II.B(ii), the peak period will begin at * and end at *, except national holidays observed by the United States postal service. All other times will be off-peak. The times constituting the peak and off-peak periods are based on
patterns of usage on the Sprint PCS Network as well as market conditions. These patterns and conditions may change over time and the peak and off-peak periods may be modified by Sprint PCS to match changes implemented under all or substantially all
of Sprint PCS’ standard consumer retail plans. 
 (a) For purposes of Section II.B(ii), “Total Qualifying MOUs” means
the aggregate of VMU’s (x) total billed peak and off-peak voice and data usage on both the Sprint PCS Network and Sprint PCS Service Provider Affiliate Network, in each case measured and billed in minutes, and
(y) total Travel MOUs, in each case for the applicable calendar year. To be eligible for the peak period hours described in Section II.B(ii) above for 2007, VMU’s Total Qualifying MOUs must be at least * during 2007. To be
eligible for the peak period hours described in Section II.B(ii) above for 2008 and each calendar year thereafter, VMU’s Total Qualifying MOUs must be at least * during 2008 and each calendar year thereafter. 
 (b) At the end of the 2007 calendar year and at the end of each calendar year thereafter, Sprint PCS will determine if VMU achieved the minimum
required Total Qualifying MOUs for the just-completed calendar year as set forth in Section II.B.ii(a) above. If VMU fails to achieve the minimum required Total Qualifying MOUs applicable to such just-completed calendar year: (x) peak
periods for the just-completed calendar year will begin at * and end at * except national holidays observed by the United States postal service, (y) the Cost of Service Formulas in Section I.A above will be used in February of the
subsequent year to compare Sprint PCS’ actual Cost of Service for MOU-based airtime services during the just-completed calendar year with the rates charged to VMU during the just-completed calendar year, as described in Section 7.2.1(b) of
the PCS Services Agreement, and (z) Sprint PCS will charge VMU the difference between the off-peak rates Sprint PCS charged VMU for MOU-based airtime services during the time periods of * through *, Monday through Friday for the entire
just-completed calendar year and the peak rates calculated in February of the subsequent calendar year using the Cost of Service Formulas in Section I.A above to compare Sprint PCS’ actual Cost of Service for MOU-based airtime services during
the just-completed calendar year with the rates charged to VMU during the just-completed calendar year, as described in Section 7.2.1(b) of the PCS Services Agreement. 
 (c) Except to the extent that Sprint PCS revises the off-peak periods during 2007 or 2008 in a manner that increases VMU’s payments under this
Agreement, VMU agrees to irrevocably release, acquit and forever discharge Sprint PCS from any liability or obligation under Section 2.5.1(b)(iii) of the PCS Services Agreement to credit or refund VMU $1,072,932 or any Implementation Costs
previously paid by VMU for the 

  

 58 

 
following Customized Services: provisioning, trouble reporting, coverage maps, fraud notifications, CDR feed integration, and interface connecting Telcordia
ISCP to Sprint PCS’ switching network (MSCs) using signaling triggers, and VMU hereby withdraws its October 5, 2006 letter addressed to Doug Lynn regarding costs for such Customized Services. 
  

	C.	Total Billed Off-Peak MOU’s: 

 That portion of Sprint PCS’
Total Billed MOUs on Network that are used during Sprint PCS’ off-peak period, as determined under the Total Billed Peak MOUs and reported by Sprint PCS in the normal course of its business. 
  

	D.	Total Billed Wholesale MOU’s: 

 That portion of Sprint
PCS’ Total Billed MOUs on Network that are used by Sprint PCS’ resellers, MVNOs, wholesalers, private label and comparable customers that sell products to end users under primary brands different that Sprint PCS, including VMU
(‘Wholesale’). 
  

	E.	Total Billed Wholesale Peak MOUs: 

 That portion of Sprint PCS’
Total Billed Wholesale MOUs that are used during Sprint PCS’ then defined peak period, as determined under the Total Billed Peak MOUs and reported by Sprint PCS in the normal course of its business. 
  

	F.	Total Billed Wholesale Off-Peak MOUs: 

 That portion of Sprint
PCS’ Total Billed Wholesale MOUs that are used during Sprint PCS’ then defined off-peak period, as determined under the Total Billed Peak MOUs and reported by Sprint PCS in the normal course of its business. 
  

	III.	Operating Costs 

 Total Network Service-Related
Operating Costs: 
  

	 	•	 	 Except as expressly included in another Cost of Service Formula or expressly excluded below, the operating costs included as Total Network Service-Related Operating
Costs include, but are not limited to all expenses associated with the planning, analysis, design, production and delivery of PCS Services. 

  

	 	•	 	 Sprint PCS will create the Airtime Pricing Matrix assuming that VMU’s usage of services that produce a direct expense to Sprint PCS from a third entity is
proportionately the same as Sprint PCS’ usage that produces such expenses. If VMU’s actual usage experience for one or more of these expense elements is greater than Sprint PCS’ average usage, Sprint PCS may adjust VMU’s airtime
charges to account for the comparative increased usage, based on the direct costs of such usage to Sprint PCS plus the WACC plus the Margin, multiplied by the total amount of usage by which VMU’s usage exceeds Sprint PCS’ average usage.

  

 59 

	 	•	 	 Total Network Service-Related Operating Costs may not include (will be reduced to exclude) amounts included in the Total Wholesale Specific Operating Costs and any
other operating costs included under another Cost of Service Formula. Total Network Service-Related Operating Costs include, but are not limited to the following operating costs: 

  

			
	Cost of Service	  	Interconnect charges paid to the LECs
		
	Service Provider Affiliate	  	Sprint PCS Service Provider Affiliate management headcount and support
		
	 Technical Services & Network
 Operations
	  	 Headcount & Support
 Consulting Fees
 Operating Expense
 Backhaul
 Site Leases

		
	Information Technologies	  	 Headcount & Support
 Consulting
Fees

		
	Research & Development	  	 Headcount and costs to support R&D
 Third party
service fees
 Third party vendor & consulting changes
 ISP
Content

		
	Vendor & Industry Fees	  	 Wholesale Billing systems support
 CDG, CTIA, and other
industry association fees
 Fraud analysis & monitoring
 Other
third party network service fees
 Software license fees

		
	General & Administrative	  	 Headcount & costs to support network and network services
 Headcount & costs to support operations
 Headcount & costs to manage third party vendors
 Property Taxes, USF & other impositions

 Total Network Service-Related Operating Costs exclude amounts paid by (a) Sprint PCS to Sprint PCS Service
Provider Affiliates for (i) Sprint PCS Service Provider Affiliate Home Service Usage and (ii) Travel MOUs and (b) Sprint PCS, Sprint PCS Service Provider Affiliates or VMU to third- 

  

 60 

 
party outsource service providers for long distance toll charges, roaming services, operator services, directory assistance or similar services to the extent
included in Section VI below. Except as set forth in the preceding sentence, Sprint PCS is not obligated to identify, allocate or eliminate Sprint PCS’s costs related to the delivery to VMU of the services set forth in Section VI, and such
costs will be included in Total Network Service-Related Operating Costs. 
 Total Network Service-Related Operating Costs will exclude the costs (or
applicable portion of costs) set forth below, if material, incurred solely in support of Sprint PCS’ retail operations. If the appropriate part of these costs dedicated to retail support cannot be specifically and separately identified, the
parties will negotiate in good faith a cost allocation, similar to the Cost Allocation set forth below, designed to exclude such costs. 
  

	 	•	 	 Retail billing & invoicing costs, collection costs, credit card transaction fees 

  

	 	•	 	 Retail customer service representative costs 

  

	 	•	 	 Retail store & kiosk costs 

  

	 	•	 	 Retail sales representative costs 

  

	 	•	 	 Retail marketing and advertising costs 

 Cost
Allocations: 
 The following elements of operating costs will be allocated on a partial basis as specified below to exclude estimated retail-related
costs: 
  

							
	 Category
	  	%
Excluded	  	%
Allocated	  	Note
	 Information Technology
	  	*	  	*	  	[1]
				
	 Revenue Operations
	  	*	  	*	  	[1] [2]
				
	 General & Administrative
	  	*	  	*	  	[3]
				
	 Customer Care
	  	*	  	*	  	[1] [2]

	[1]	These allocations are subject to annual review and revision by Sprint PCS as necessary to reflect significant changes in the proportionate use of the underlying resources
dedicated to support Sprint PCS’ retail operations. 

	[2]	The allocated portion (“% Allocated”) of these costs are included in Total Wholesale Specific Operating Costs. 

	[3]	If Sprint PCS makes a change to its accounting practices that has a material impact on the types of costs that are allocated to General & Administrative, the allocations
will be subject to revision by Sprint PCS as necessary to reflect the proportionate use of the underlying resources dedicated to support Sprint PCS’ retail operations. 

  

 61 

 All other costs related to the operation of Sprint PCS’ network and services will be included as operating costs as
described herein. Except as expressly set forth in the Formula, operating costs will not be excluded from this calculation. 
 Total Wholesale Specific
Operating Costs: 
 Operating costs, as described above, incurred solely in support of Sprint PCS’ Wholesale operations, that can be specifically and
separately identified including, but not limited to, its Private Label Services (PLS) business unit, the Renaissance Billing Platform and the PLS end user management and provisioning website. Such costs will exclude marketing fees that Sprint PCS
pays to third parties that utilize the Sprint PCS network. 
  

	IV.	Network Depreciation and License Amortization 

 Network Depreciation (as used in Network Depreciation and License Amortization): 
  

	 	•	 	 The Formula used to determine the Airtime Costs per MOU includes amounts representing compensation to Sprint PCS for the economic depletion of the Sprint PCS
network and capital assets, IT related assets, operating system assets, administrative assets and other asset depreciation, as determined in accordance with Sprint PCS’ accounting practices consistently applied. 

  

	 	•	 	 Network Depreciation may not include amounts included in Wholesale Specific Depreciation and License Amortization and any other network depreciation included under
another Cost of Service Formula. 

 License Amortization (as used in Network Depreciation and License Amortization):

  

	 	•	 	 The Formula used to determine the Airtime Cost per MOU includes amounts representing compensation to Sprint PCS for the economic depletion of all of its spectrum
licenses and amortization of other licenses and similar costs as determined in accordance with Sprint PCS’ accounting practices consistently applied. 

  

	 	•	 	 License Amortization may not include amounts included in Wholesale Specific Depreciation and License Amortization, and any other license amortization included under
another Cost of Service Formula. 

  

 62 

 Wholesale Specific Depreciation and License Amortization: 
 Network Depreciation and License Amortization, as described above, incurred solely in support of Sprint PCS’ Wholesale operations, that can be
specifically and separately identified, including the Renaissance Billing Platform. 
  

	V.	Profit Margin % Matrix 

 Except as provided below with respect to
Sprit PCS Service Provider Affiliate Home Service Usage, the Margin used to calculate the amounts VMU will pay to Sprint PCS under the Service Agreement is determined from the table below based on VMU’s Subscribers as of the last day of the
applicable period and the End User Lifetime Value as defined below. 
 Until the Agreement terminates or expires in accordance with its terms, for purposes
of setting the Margin applicable to Sprint PCS Service Provider Affiliate Home Service Usage, the 20 year term from the Original Agreement Effective Date will be broken down into the following seven periods: 
 First Affiliate Fixed Margin Period: July 7, 2002 until July 6, 2005. 
 Second Affiliate Fixed Margin Period: July 7, 2005 until July 6, 2008. 
 Third Affiliate Fixed Margin Period: July 7, 2008 until
July 6, 2011. 
 Fourth Affiliate Fixed Margin Period: July 7, 2011 until July 6, 2014. 
 Fifth Affiliate Fixed Margin Period: July 7, 2014 until July 6, 2017. 
 Sixth Affiliate Fixed Margin Period: July 7, 2017 until July 6, 2020. 
 Seventh Affiliate Fixed Margin Period: July 7, 2020 until
the earlier of expiration of the Term of the Agreement or July 6, 2023.  
 At any time during the period beginning with the date 12 months
before expiration of each Affiliate Fixed Margin Period and ending with the date 6 months before expiration each Affiliate Fixed Margin Period, VMU may provide written notice to both Sprint PCS and each Sprint PCS Service Provider Affiliate included
under this Agreement that the fixed Margin for the next Affiliate Fixed Margin Period will be modified to a rate selected by VMU, provided that such rate is not lower than the rate applicable to Sprint PCS Home Service Usage under this Cost of
Service Formula. Each Sprint PCS Service Provider Affiliate will have the option of discontinuing its participation under this Agreement effective upon the end of an Affiliate Fixed Margin Period for any reason whatsoever. If a Sprint PCS Service
Provider Affiliate discontinues participation under this Agreement, it will continue to support End Users activated in its service area before end of the Affiliate Fixed Margin Period in which it exercises its right of termination (without VMU
initiated modification to the existing Margin) under the terms of this Agreement as if the Agreement had not expired or terminated, but VMU will no 

  

 63 

 
longer be authorized to sell its products and services in the non-participating Sprint PCS Service Provider Affiliate’s Market and its territories will
be removed from the list of Markets attached to the Agreement as of the end of the Affiliate Fixed Margin Period in which the Sprint PCS Service Provider Affiliate exercises its right of termination. If VMU fails to provide notice in the period
described above, the fixed Margin will remain unchanged during the succeeding Affiliate Fixed Margin Period. 
 End User Lifetime Value (LV) Calculation:

  

	*	

 End User Life Factor: 
 Discounted life of the customer base at a constant rate over time. 
  

	*	

 WACC: 
 WACC is the “Cost of Capital” as defined in the PCS Services Agreement. 
 Churn: 
 Churn is as defined in the PCS Services Agreement. 
 Average Revenue Per User (ARPU): 
 VMU’s quarterly net collected (less amounts credited to customers and other
billing and accounting adjustments) service usage revenue (non-usage charges include taxes and other government assessments, activation fees, termination fees and charges, other one time charges, handset and accessory charges, charges for services
provided by and billed on behalf of another entity) per Average Subscriber during the quarter. For purposes of this calculation the quarterly revenue amount so determined is divided by the sum of the average number of Subscribers for each of the
three months included in the quarter. The average number of Subscribers for each of the three months is determined by adding the number of Subscribers at the beginning of the month to the number of Subscribers at the end of the month, and dividing
the determined sum by 2. 
 Cash Cost Per User (CCPU): 
 VMU’s quarterly costs related to the ongoing maintenance and management of its End User base per Average Subscriber during the relevant quarter, including all of VMU’s cost of providing services to and supporting its End Users
(including depreciation, amortization, license fees, collection costs, and similar costs), but excluding costs included as CPGA and the Cost of Service paid by VMU to Sprint 

  

 64 

 
PCS for PCS Services under this Service Agreement. For purposes of this calculation the quarterly cost amount so determined is divided by the sum of the
average number of Subscribers for each of the three months included in the quarter. The average number of Subscribers for each of the three months is determined by adding the number of Subscribers at the beginning of the month to the number of
Subscribers at the end of the month, and dividing the determined sum by 2. 
 Cost Per Gross Add (CPGA): 
 VMU’s average cost of acquisition and activation (i.e.: advertising, sales costs and sales commissions, marketing costs, handset subsidy, etc.) including IT costs,
per gross additional End User during the relevant period. 
 All above calculations will be performed in accordance with Sprint PCS’ accounting
practices for economic cost parameters consistently applied. 
  

	VI.	Other Pricing 

 Long Distance: 
 Sprint PCS will provide long distance services (toll charges for terminating service beyond the applicable local exchange provider local calling area) to VMU and charge
VMU the following rates: 
 1. International Toll: Subject to the adjustment charge described in subsection (a) below, Sprint PCS will
charge VMU the international per minute base rates set forth in Exhibit D, attached hereto. 
 (a) During the period commencing on
June 1, 2006 and ending December 31, 2007, if the total billed amount for all VMU international toll calls at the end of any billing month (“Total International Revenue”) amount to less than $500,000, Sprint PCS will charge VMU
an adjustment charge equal to the difference between the Total International Revenue and $500,000 with respect to each month in which the Total International Revenue does not equal or exceed $500,000. Such adjustment charge, if any, will be included
on the monthly invoice for the just-completed billing month. 
 (b) At the conclusion of each calendar year (at the same time as the annual
adjustments under the Services Agreement), except for the rates for “All Other Mexico Calls” and “Inmarsat (satellite stations)”, Sprint PCS will adjust the international toll rates in Exhibit D to reflect changes in the
wholesale international toll rates that Sprint PCS pays Sprint Communications Company L.P. (plus WACC, plus a * margin). The adjusted rates will apply prospectively until the subsequent annual adjustment. 
 (c) The rates for “All other Mexico calls” and “Inmarsat (satellite stations)” set forth in Exhibit D may be modified from time to
time in Sprint PCS’ sole discretion. 
  

 65 

	2.	Intrastate / Interstate 

  

	 	(i)	Calendar Years 2007 and thereafter 

  

	 	•	 	 At the conclusion of each calendar year (at the same time as the annual adjustments under the Services Agreement) Sprint PCS will adjust the interstate and
intrastate rates to reflect changes in the wholesale long distance rates that Sprint PCS pays (plus WACC, plus a * margin) and changes in VMU’s traffic mix. The adjusted rates will apply prospectively until the subsequent annual adjustment.

  

	 	•	 	 For as long as Sprint PCS’ billing system does not rate and bill certain toll usage (“unbilled local toll”), Sprint PCS will estimate VMU’s
unbilled local toll (based on its review of its total long distance usage) and bill VMU for such estimated usage (at the rates set forth above). At least 120 days before the end of each year of the Term, Sprint PCS will provide VMU with its then
current estimate of unbilled local toll. That value will be used to estimate and bill VMU’s unbilled local toll for the following year. The parties will work together to review the information used by Sprint PCS to determine its estimate and
validate the estimate provided by Sprint PCS. 

 The following formula will be used to determine VMU’s unbilled local
toll: 
 Y = (1+*%) x Z where: 
 Y = Total VMU toll usage (billed and unbilled) 
 Z = Total VMU billed toll usage 
 Once Y is derived, Z will be subtracted from Y to derive unbilled local toll. This difference will be multiplied by the rate above to determine the
additional local toll charges to be invoiced to VMU monthly. 
 Sprint PCS and VMU will use their best commercially reasonable efforts to
ensure that VMU’s unbilled local toll for Service Provider Affiliate networks is determined and billed in a manner consistent with the procedures for VMU’s unbilled local toll for the Sprint PCS Network set forth above. 
  

 66 

 Travel Charges: 
  

	•	 	 Travel MOUs are (i) End User minutes of use on Sprint PCS Service Provider Affiliate Networks for End Users with MIN’s assigned within the Sprint PCS
Network coverage that is not Sprint PCS Service Provider Affiliate Network coverage; and (ii) End User minutes of use on the Sprint PCS Network (that is not Sprint PCS Service Provider Affiliate Network coverage) or another Sprint PCS Service
Provider Affiliate Network by End Users with MIN’s assigned within a Sprint PCS Service Provider Affiliate Network coverage area. 

  

	•	 	 At the conclusion of each calendar year Sprint PCS will adjust these rates as necessary to reflect changes in the Sprint PCS – Sprint PCS Service Provider
Affiliate travel minute exchange rate (plus WACC, plus a * margin). The adjusted rates will apply prospectively until the subsequent annual adjustment. 

 Roaming: 
 For Roaming calls that are completed despite VMU’s instructions that Sprint PCS block Roaming pursuant
to Section 9.2.3 of the Agreement, Sprint PCS will charge VMU the rates set forth below. The parties acknowledge that Roaming shall not include Sprint PCS Service Provider Affiliate travel usage. 
  

	 	1.	Domestic Roaming Charges  

 For automatic
Roaming calls End Users make or receive in the United States, Sprint PCS will charge VMU an average pass through domestic Roaming rate of $ * per minute plus taxes, if applicable. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’
domestic voice Roaming charges, and if such analysis results in a different average pass through rate, Sprint PCS will update the rate it charges VMU prospectively consistent with such analysis.  
  

	 	2.	Automatic Roaming for Guam, Puerto Rico & US Virgin Islands 

 For Roaming calls that End Users make or receive in Guam, Puerto Rico or the US Virgin Islands, Sprint PCS will charge VMU an average pass through rate of $ * per minute, plus all other applicable charges such as
taxes and surcharges. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ voice Roaming charges for Guam, Puerto Rico and the US Virgin Islands, and if such analysis results in a different average pass through rate, Sprint PCS will
update the rate it charges VMU prospectively consistent with such analysis. 
  

	 	3.	Automatic International Roaming for All Countries Except Guam, Puerto Rico and US Virgin Islands 

 Sprint PCS will charge VMU the average pass through international Roaming rates set forth below. Each quarter, Sprint PCS will perform an analysis of
Sprint PCS’ international voice Roaming charges, and if such analysis results in different average pass through rates, Sprint PCS will update the rates it charges VMU prospectively consistent with such analysis. 
  

 67 

 For international Roaming services in all countries where Sprint PCS provides international Roaming,
excluding Guam, Puerto Rico and the US Virgin Islands (each an “International Roaming Country”), Sprint PCS will charge VMU as follows: 
 (i) For (x) calls that originate and terminate within the same International Roaming Country, (y) calls that originate in the International Roaming Country and terminate in the United States, and (z) all incoming calls
in International Roaming Countries regardless of their origination point, the applicable average pass through per minute airtime rate for the International Roaming Country where the call originates as set forth below, plus all other applicable
charges such as taxes and surcharges; or 
 (ii) For calls that originate in an International Roaming Country and terminate in any
other International Roaming Country other than the United States, the applicable average pass through per minute airtime rate for the International Roaming Country where the call originates as set forth below, plus applicable international toll
charges for the terminating country as set forth in Exhibit D to Schedule 1.0, plus all other applicable charges such as taxes and surcharges. 
 International Roaming Airtime Average Pass Through Per Minute Rates 
  

			
	 Country
	  	 Roaming Rates
 Per Minute

	Canada	  	*
	Mexico	  	*
	All other countries (except Guam, Puerto Rico & US Virgin Islands	  	*

  

	 	4.	Manual Roaming Charges 

 For manual Roaming
in areas where Sprint PCS does not provide Roaming, Roaming charges are billed directly to the End User credit or calling card by the serving carrier at carrier-defined rates. 
 Operator Services: 
 Sprint PCS will charge VMU its standard retail rates and charges for operator services.

  

 68 

 Directory Assistance: 
 Sprint PCS will charge VMU * per call, plus all other applicable charges including airtime charges, for directory assistance services. 
 Customized Services: 
 Charges under the Airtime Pricing Formula do not include, and are in addition to, any charges for Customized Services.

 Pricing Adjustments: 
 In the event that Sprint PCS
enters into a wireless service agreement: 
 a) To sell PCS Services (not including services used for product or service testing or
demonstration purposes and not including Long Distance, Sprint PCS Service Provider Affiliate Home Service Usage, Travel Charges, Roaming, Directory Assistance, Operator Services and Customized Services) to a Direct Strategic Competitor of VMU,
other than Sprint PCS; 
 b) The material terms of which are substantially similar to those applicable to VMU under this Services Agreement,
(with respect to such things as sales volume, territory, and scope of product and service offering applicable to VMU at the time Sprint PCS enters into such agreement with the third party); 
 c) Sprint PCS and its Affiliates own less that 37.5% of such third party; and 
 d) The agreement commits Sprint PCS to sell to third party wireless voice and/or data services (other than services that would be Customized Services
under this Agreement) at a lower price (in the aggregate) than Sprint PCS sells such services to VMU under this Services Agreement (in the aggregate); 
 VMU
may request and Sprint PCS will, on a prospective basis, make such PCS Services available to VMU at the same price and under the same terms and conditions (in addition to the terms and conditions of the Services Agreement) in lieu of prices in this
Airtime Cost of Service Formula and all of the other Cost of Service Formulas included under this Services Agreement. 
  

	•	 	 Nothing contained in this provision will relieve VMU from charges for Customized Service Costs, Implementation Costs or any other charges applicable under this
Services Agreement. 

  

	•	 	 If Sprint PCS enters into such agreement, it will notify VMU of the existence and relevant terms of such agreement within a commercially reasonable period of time.

  

	•	 	 Other cost and pricing terms are specifically set forth in the Agreement. 

  

 69 

 Schedule 1.1 
 Cost of Service Formula (Per Message Pricing) 
 1) Cost of Service Formula. The Cost of Service Formula
(copy attached) is subject to the non-disclosure agreement described in Section 19 of the Agreement. The Cost of Service Formula is not specific to VMU and includes (except as specifically provided therein) the costs that will be used to
determine VMU’s prices regardless of whether VMU or its End Users utilize the services or functionality associated with such costs. 
 2)
Reporting. To help control the potential dissemination of critical Sprint PCS proprietary financial information, the actual results that are included in the Cost of Service Formula (from which the prices are derived) will be
disclosed only as aggregate numbers (applicable prices to be included in an Airtime Pricing Matrix for per message pricing in the form attached hereto as Schedule 1.0 and 1.1 / Exhibit A) and only to a limited number of VMU employees (listed in
Schedule 1.0 and 1.1 / Exhibit B or their successors) that need to know such information and that have signed individual acknowledgements of their non-disclosure obligations the form attached hereto as Schedule 1.0 and 1.1 / Exhibit C. 

3) Verification.  
 (a) [Intentionally left blank]

 (b) Ongoing Verification. If VMU questions Sprint PCS’ calculation of its actual Cost of Service for MOU based airtime services and SMS
messages as outlined in Sections 7.2.1 (b) and 7.2.2 (b) of this Agreement, VMU may request that Sprint PCS’ outside auditor, at the cost of VMU, examine Sprint PCS’ assertion that it complied with the requirements of the PCS
Services Agreement in its calculation of its actual Cost of Service for MOU based airtime services and SMS messages as outlined in Sections 7.2.1 (b) and 7.2.2 (b) of this Agreement for the preceding year. Based upon its examination, the
auditor will verify that Sprint PCS’ assertion that it complied with the aforementioned requirements for the aforementioned period is fairly stated, in all material respects. If inaccuracies are discovered, the Parties will take corrective
action, which action, if necessary, will include escalation under Section 17 of this Agreement 
 (c) Procedures. The following procedures will
apply to any verification activities described in this Section 3: 
 (i) VMU must
request verification under subsection (b) above prior to the later of (A) the 15th day of March of the
year following the year subject to verification; or (B) 15 days following VMU’s receipt of the report setting forth the difference, if any, determined by Sprint PCS under Section 7.2.1(b) or 7.2.2(b), as the case may be. 

(ii) VMU will not have direct access to Sprint PCS’ information databases without the consent of Sprint PCS. 
  

 70 

 (iii) VMU acknowledges that it will not be given access to critical Sprint PCS proprietary financial
information as a result of such verification. 
 (iv) Sprint PCS will cooperate in good faith throughout the verification process. 

 

 71 

 I. SMS Cost per Message. The formulas below will be used to determine VMU’s Cost of Service for SMS messages
under the PCS Services Agreement. 
 Terminated Message Cost Calculation 
 [SMS Specific Operating Costs x (1+WACC) 
 Total SMS Messages on Network

 + 
 Terminated SMS Specific
Operating Costs x (1+WACC)
 Total Terminated SMS Messages on Network 
 + 
 SMS Specific Depreciation x (1+WACC)
 Total SMS Messages on Network 
 + 

Terminated SMS Specific Depreciation x (1+WACC)] 
 Total Terminated SMS Messages on Network 
 x 
 (1+ Profit Margin %) 
 Originated Message Cost Calculation 
 [SMS Specific Operating Costs x (1+WACC) 
 Total SMS Messages on Network 
 + 
 SMS Specific Depreciation x (1+WACC) ] 
 Total SMS Messages on Network 
 x 
 (1+ Profit Margin %) 
  

 72 

	II.	SMS Message Calculations 

 Total Terminated SMS
Messages on Network: 
  

	 	•	 	 Sprint PCS’ reported total Short Message Service (“SMS”) terminating message usage measured and billed in number of terminating messages on its
network. 

  

	 	•	 	 Billed messages may not include certain categories of network messages (e.g.: customer notification messages, etc.) and/or Sprint PCS Service Provider Affiliate
network messages when data is not readily available under Sprint PCS’ standard reporting packages and procedures. As long as such category of messages is not included in Total Terminated SMS Messages on Network, the same category of messages
used by VMU End Users will not be charged to VMU. 

  

	 	•	 	 Sprint PCS will calculate the total number of terminating messages on the Sprint PCS network for all voice and/or data customers, including Sprint PCS branded and
unbranded Customers and VMU End Users. 

  

	 	•	 	 Procedures for calculating messages will be consistently applied for all billing and pricing calculations. 

 Total Originated SMS Messages on Network: 
  

	 	•	 	 Sprint PCS’ reported total Short Message Service (“SMS”) originating message usage measured and billed in number of messages originating on its
network. 

  

	 	•	 	 Billed messages may not include certain categories of network messages and/or Sprint PCS Service Provider Affiliate network messages when data is not readily
available under Sprint PCS’ standard reporting packages and procedures. As long as such category of messages is not included in Total Originating SMS Messages on Network, the same category of messages used by VMU End Users will not be charged
to VMU. 

  

	 	•	 	 Sprint PCS will calculate the total number of messages originating on the Sprint PCS network for all voice and/or data customers, including Sprint PCS branded and
unbranded Customers and VMU End Users. 

  

	 	•	 	 Procedures for calculating messages will be consistently applied for all billing and pricing calculations. 

 Total SMS Messages on Network: 
 Total
SMS Messages on Network is equal to the sum of Total Terminated SMS Messages on Network and Total Originated SMS Messages on Network. 
  

 73 

	III.	Operating Costs 

 SMS Specific Operating Costs:

  

	 	•	 	 Except as expressly included in another Cost of Service Formula, SMS Specific Operating Costs (as operating costs are more fully described in the Airtime Cost of
Service Formula not taking into account the exception regarding Section VI of such Airtime Cost of Service Formula) include all expenses associated with the planning, analysis, design, production and delivery of Sprint PCS’ SMS originating and
terminating services. Except as expressly included in another cost of Service Formula, SMS Specific Operating Costs include an amount of network service operating costs related to the production and provision of originating and terminating SMS
messages as reasonably determined by Sprint PCS under its financial systems, practices and policies. Amounts separately billed to VMU under Section VI of the Airtime Cost of Service Formula are not separately billed with respect to SMS and are,
therefore, included in the SMS Specific Operating Costs. 

  

	 	•	 	 Amounts included in SMS Specific Operating Costs will not be included in (will be deducted from) other Cost of Service Formulas. 

 Terminated SMS Specific Operating Costs: 
  

	 	•	 	 Except as expressly included in another Cost of Service Formula and SMS Specific Operating Costs, Terminated SMS Specific Operating Costs (as operating costs are
more fully described in the Airtime Cost of Service Formula) include all expenses associated with the planning, analysis, design and production of Sprint PCS’ terminating SMS services. Such expenses include Sprint PCS’ Wireless Messaging
Operations Group, Sprint PCS’ BMG and SMSC Network Planning Group, and similar dedicated support groups. 

  

	 	•	 	 Amounts included in Terminated SMS Specific Operating Costs will not be included in (will be deducted from) other Cost of Service Formulas and SMS Specific
Operating Costs. 

  

	IV.	Depreciation 

 SMS Specific Depreciation:

  

	 	•	 	 The formula used to determine the SMS Cost per Message includes amounts representing compensation to Sprint PCS for the economic depletion of the Sprint PCS
Network, IT related assets, operating system assets, administrative assets and other capital assets as determined in accordance Sprint PCS’ accounting practices consistently applied. 

  

 74 

	 	•	 	 SMS Specific Depreciation includes an amount of Network Depreciation related to the production and provision of originating and terminating SMS messages as
reasonably determined by Sprint PCS under its financial systems, practices and policies 

  

	 	•	 	 Amounts included in SMS Specific Depreciation will not be included in (will be deducted from) other Cost of Service Formulas. 

 Terminated SMS Specific Depreciation: 
  

	 	•	 	 The Formula used to determine the SMS Cost per Message includes amounts representing compensation to Sprint PCS for the economic depletion of terminating SMS
capital assets and other terminating SMS asset depreciation (i.e. Air Media Gateway, Bulk Messaging Gateway, Short Message Service Center), as determined in accordance with Sprint PCS’ accounting practices consistently applied.

  

	 	•	 	 Terminated SMS Specific Depreciation will be reasonably determined by Sprint PCS under its financial systems, practices and policies. 

 

	 	•	 	 Amounts included in Terminated SMS Specific Depreciation will not be included in (will be deducted from) other Cost of Service Formulas and SMS Specific
Depreciation. 

  

	V.	Profit Margin % Matrix 

 The Profit Margin used is
the SMS Cost Per Message Formula is the same as the Profit Margin determined under the Airtime Cost of Service Formula. 
  

	VI.	Other Pricing 

 Customized Services:

 Charges under the SMS Pricing Formula do not include, and are in addition to, any charges for Customized Services. 
 Pricing Adjustments: 
  

	 	•	 	 In the event that Sprint PCS enters into a wireless service agreement: 

 (a) To sell PCS Services (not including services used for product or service testing or demonstration purposes and not including Long Distance, Travel
Charges, Roaming, Directory Assistance, Operator Services and Customized Services) to a Direct Strategic Competitor of VMU, other than Sprint PCS; 
 (b) The material terms of which are substantially similar to those applicable to VMU under this Services Agreement, (with respect to such things as sales volume, territory, and scope of product and service offering applicable to VMU at the
time Sprint PCS enters into such agreement with the third party); 
 (c) Sprint PCS and its Affiliates own less that 37.5% of such third
party; and 
  

 75 

 (d) The agreement commits Sprint PCS to sell to third party wireless voice and/or data services (other
than services that would be Customized Services under this Agreement) at a lower price (in the aggregate) than Sprint PCS sells such services to VMU under this Services Agreement (in the aggregate); 
 VMU may request and Sprint PCS will, on a prospective basis, make PCS Services available to VMU at the same price and under the same terms and conditions
(in addition to the terms and conditions of the Services Agreement) in lieu of prices in this SMS Cost of Service Formula and all of the other Cost of Service Formulas included under this Services Agreement and all other applicable terms and
conditions. 
  

	 	•	 	 Nothing contained in this provision will relieve VMU from charges for Customized Service Costs, Implementation Costs or any other charges applicable under this
Services Agreement. 

  

	 	•	 	 If Sprint PCS enters into such agreement, it will notify VMU of the existence and relevant terms of such agreement within a commercially reasonable period of time.

  

	 	•	 	 Other cost and pricing terms are as specifically set forth in the Agreement. 

  

 76 

 Schedule 1.2 
 Cost of Service Formula (Per MB Pricing) 
 1) Cost of Service Formula. This Cost of Service Formula for
per MB pricing is subject to the non-disclosure agreement described in Section 19 of the Agreement. The Cost of Service Formula is not specific to VMU and includes (except as specifically provided therein) the costs that will be used to
determine VMU’s prices regardless of whether VMU or its End Users utilize the services or functionality associated with such costs. 
 2)
Reporting. To help control the potential dissemination of critical Sprint PCS proprietary financial information, the actual results that are included in the Cost of Service Formula (from which the prices are derived) will be disclosed
only as aggregate numbers (applicable prices to be included in a 3G Data Transport Pricing Matrix for per megabyte pricing in the form attached hereto as Schedule 1.2 / Exhibit A-1) and only to a limited number of VMU employees (listed in Schedule
1.2 / Exhibit B or their successors) that need to know such information and that have signed individual acknowledgements of their non-disclosure obligations the form attached hereto as Schedule 1.2 / Exhibit C. 
 3) Verification.  
 (a) Ongoing Verification. If VMU
questions Sprint PCS’ calculation of its actual Cost of Service for MOU based airtime services, SMS messages and 3G Data Transport service as outlined in Sections 7.2.1(b), 7.2.2(b) and 7.2.3(b) of this Agreement, VMU may request that Sprint
PCS’ outside auditor, at the cost of VMU, examine Sprint PCS’ assertion that it complied with the requirements of the PCS Services Agreement in its calculation of its actual Cost of Service for MOU based airtime services, SMS messages and
3G Data Transport service as outlined in Sections 7.2.1(b), 7.2.2(b) and 7.2.3(b) of this Agreement for the preceding year. Based upon its examination, the auditor will verify that Sprint PCS’ assertion that it complied with the aforementioned
requirements for the aforementioned period is fairly stated, in all material respects. If inaccuracies are discovered, the Parties will take corrective action, which action, if necessary, will include escalation under Section 17 of this
Agreement 
 (b) Procedures. The following procedures will apply to any verification activities described in this Section 3: 

(i) VMU must request verification under subsection (a) above prior to the later of
(A) the 15th day of March of the year following the year subject to verification; or (B) 15 days following
VMU’s receipt of the report setting forth the difference, if any, determined by Sprint PCS under Section 7.2.1(b), 7.2.2(b) or 7.2.3(b), as the case may be. 
 (ii) VMU will not have direct access to Sprint PCS’ information databases without the consent of Sprint PCS. 
 (iii) VMU acknowledges that it will not be given access to critical Sprint PCS proprietary financial information as a result of such verification. 
 (iv) Sprint PCS will cooperate in good faith throughout the verification process. 
  

 77 

	I.	3G Data Transport Cost per Megabyte. 

 The formula below will be
used to determine VMU’s Cost of Service for 3G Data Transport service under the PCS Services Agreement. 
  

	 	23.	3G Data Transport Cost Calculation 

 [Total
Wholesale Specific 3G Data Transport Operating Costs x (1+WACC) 
 Total Billed Wholesale MBs 
 + 
 Total Wholesale Specific 3G Data
Transport Depreciation x (1+WACC) 
 Total Billed Wholesale MBs 
 + 
 Total Network Service-Related 3G Data Transport Operating Costs x (1+WACC)

 Total Billed MBs on Network 
 + 
 Total Network-Related 3G Data Transport Depreciation x (1+WACC)] 
 Total Billed MBs on Network 
 x 
 (1+ Profit Margin %) 
  

	II.	3G MB Calculations 

 Total Billed MBs on Network: 

 

	•	 	 Sprint PCS’ reported total billed megabytes of 3G Data Transport service (“3G MBs”) usage measured and billed in number of MBs on the Sprint PCS
Network. 

  

	•	 	 Billed 3G MBs may not include certain categories of network MBs (e.g.: customer notification messages, etc.) and/or Sprint PCS Service Provider Affiliate Network
MBs when data is not readily available under Sprint PCS’ standard reporting packages and procedures. As long as such category of MBs is not included in Total 3G Billed MBs on Network, the same category of messages used by VMU End Users will not
be charged to VMU. 

  

	•	 	 Sprint PCS will calculate the total number of 3G MBs on the Sprint PCS Network for all 3G data customers, including Sprint PCS branded and unbranded Customers and
VMU End Users. 

  

	•	 	 Procedures for calculating 3G MBs will be consistently applied for all billing and pricing calculations. 

  

 78 

 Total Billed Wholesale MBs: 
 That portion of Sprint PCS’ Total Billed MBs on Network that represents MBs used by Sprint PCS’ resellers, MVNOs, wholesalers, private label and comparable customers that sell products to end users under primary brands different
that Sprint, including VMU (“Wholesale”). Procedures for calculating MBs will be consistently applied for all billing and pricing calculations. 
  

	III.	Operating Costs 

 Total Network Service-Related 3G Data Transport
Operating Costs: 
  

	•	 	 Except as expressly included in another Cost of Service Formula, 3G Data Transport Specific Operating Costs (as operating costs are more fully described in the
Airtime Cost of Service Formula not taking into account the exceptions for certain costs charged separately under Section VI of such Airtime Cost of Service Formula) include all expenses associated with the planning, analysis, design, production and
delivery of Sprint PCS’ 3G Data Transport services. Except as expressly included in another Cost of Service Formula, 3G Data Transport Specific Operating Costs include an amount of network service operating costs related to the production and
provision of 3G Data Transport services on the Sprint PCS Network, but not including the Sprint PCS Service Provider Affiliate networks, as reasonably determined by Sprint PCS under its financial systems, practices and policies. Amounts separately
billed to VMU under Section VI of the Airtime Cost of Service Formula are not separately billed with respect to 3G Data Transport services and those related operating costs excluded under the Airtime Cost of Service Formula are included in the 3G
Data Transport Specific Operating Costs. 

  

	•	 	 Amounts included in 3G Data Transport Specific Operating Costs will not be included in (will be deducted from) other Cost of Service Formulas.

 Total Wholesale Specific 3G Data Transport Operating Costs: 
 3G Data Transport Specific Operating Costs, as described above, incurred solely in support of Sprint PCS’ Wholesale operations, that can be specifically and separately identified including, but not limited to,
its Private Label Services (PLS) business unit, the Renaissance Billing Platform and the PLS end user management and provisioning website, or as reasonably determined by Sprint PCS under its financial systems, practices and policies. Such costs will
exclude marketing fees that Sprint PCS pays to third parties that utilize the Sprint PCS Network. 
  

	IV.	Depreciation 

 Total Network-Related 3G Data Transport
Depreciation: 
  

	•	 	 The Formula used to determine the 3G Data Transport Cost per Megabyte includes amounts representing compensation to Sprint PCS for the economic depletion of the
Sprint PCS Network, IT related assets, operating system assets, administrative assets and other capital assets as determined in accordance Sprint PCS’ accounting practices consistently applied. 

  

 79 

	•	 	 Total Network-Related 3G Data Transport Depreciation includes an amount of Network Depreciation related to the production and provision of 3G data services as
reasonably determined by Sprint PCS under its financial systems, practices and policies. 

  

	•	 	 Amounts included in Total Network-Related 3G Data Transport Depreciation will not be included in (will be deducted from) other Cost of Service Formulas.

 Total Wholesale Specific 3G Data Transport Depreciation: 
 Total Wholesale Specific 3G Data Transport Depreciation, as described above, incurred solely in support of Sprint PCS’ Wholesale operations, that can be specifically and separately identified, including the
Renaissance Billing Platform, or as reasonably determined by Sprint PCS under its financial systems, practices and policies. 
  

	V.	Profit Margin % Matrix 

 The Profit Margin used in the 3G Data
Transport Formula is the same as the Profit Margin determined under the Airtime Cost of Service Formula. 
  

	VI.	Other Pricing 

 Customized Services: 
 Charges under the Per MB Pricing Formula do not include, and are in addition to, any charges for Customized Services. 
 Pricing Adjustments: 
  

	•	 	 In the event that Sprint PCS enters into a wireless service agreement: 

 (a) To sell PCS Services (not including services used for product or service testing or demonstration purposes and not including Long Distance, Travel Charges, Roaming, Directory Assistance, Operator Services and
Customized Services) to a Direct Strategic Competitor of VMU, other than Sprint PCS; 
 (b) The material terms of which are substantially similar to those
applicable to VMU under this Services Agreement, (with respect to such things as sales volume, territory, and scope of product and service offering applicable to VMU at the time Sprint PCS enters into such agreement with the third party);

  

	(c)	Sprint PCS and its Affiliates own less that 37.5% of such third party; and 

 (d) The agreement commits Sprint PCS to sell to third party wireless voice and/or data services (other than services that would be Customized Services under this Agreement) at a lower price (in the aggregate) than Sprint PCS sells such
services to VMU under this Services Agreement (in the aggregate); 
  

 80 

 VMU may request and Sprint PCS will, on a prospective basis, make PCS Services available to VMU at the same price and
under the same terms and conditions (in addition to the terms and conditions of the Services Agreement) in lieu of prices in this Per MB Pricing Cost of Service Formula and all of the other Cost of Service Formulas included under this Services
Agreement and all other applicable terms and conditions. 
  

	•	 	 Nothing contained in this provision will relieve VMU from charges for Customized Service Costs, Implementation Costs or any other charges applicable under this
Services Agreement. 

  

	•	 	 If Sprint PCS enters into such agreement, it will notify VMU of the existence and relevant terms of such agreement within a commercially reasonable period of time.

  

	•	 	 Other cost and pricing terms are as specifically set forth in the Agreement. 

  

 81 

 Exhibit A 
 Pricing Matrix 
 * 
  

 82 

 Exhibit B 
 Chief Executive Officer 
 Dan Schulman 
 Chief Financial Officer 
 John Feehan 
 General Counsel 
 Peter Lurie 
  

 83 

 Exhibit C 
 Non-Disclosure Obligations 
 Employee Acknowledgement of Confidential Financial Information

 I,
                                , hereby acknowledge that any pricing and other
financial information I receive from Sprint PCS or otherwise is confidential and proprietary and subject to a non-disclosure agreement between my employer, Virgin Mobile USA, LLC and Sprint Spectrum L.P. that governs the disclosure and use of such
information. Pursuant to such agreement, I understand that I cannot disclose such information to anyone without Sprint PCS’ prior written consent. I understand further that I cannot make any copies of such information and that I am obligated to
return all such information to Sprint PCS upon its request to me or my employer. 
  

	
	 Signature:                                     
                                       
 

	 Print Name:                                    
                                     
 

	 Date:                                     
                                        
          

  

 84 

 Exhibit D 
 International Long Distance Per Minute (rounded) Rates 
  

			
	 Country
	  	 Per Minute Rate

	Afghanistan	  	*
	Albania	  	*
	Algeria	  	*
	American Samoa	  	*
	Andorra	  	*
	Angola	  	*
	Anguilla	  	*
	Antigua	  	*
	Argentina	  	*
	Armenia	  	*
	Aruba	  	*
	Ascension Island	  	*
	Australia	  	*
	Australian External Territories (formerly Christmas Island and Norfolk Island)	  	*
	Austria	  	*
	Azerbaijan	  	*
	Bahamas	  	*
	Bahrain	  	*
	Bangladesh	  	*
	Barbados	  	*
	Belarus	  	*
	Belgium	  	*
	Belize	  	*
	Benin	  	*
	Bermuda	  	*
	Bhutan	  	*
	Bolivia	  	*
	Bosnia & Herzegovina	  	*
	Botswana	  	*
	Brazil	  	*
	British Virgin Islands	  	*
	Brunei	  	*
	Bulgaria	  	*
	Burkina Faso	  	*
	Burundi	  	*
	Cambodia	  	*
	Cameroon	  	*

  

 85 

			
	Canada	  	*
	Cape Verde Islands	  	*
	Cayman Islands	  	*
		
	 Country
	  	*
	Central African Republic	  	*
	Chad Republic	  	*
	Country	  	*
	Chile	  	*
	China	  	*
	Colombia	  	*
	Comoros	  	*
	Congo	  	*
	Congo, Dem. Rep. (Zaire)	  	*
	Cook Islands	  	*
	Costa Rica	  	*
	Croatia	  	*
	Cuba	  	*
	Cyprus	  	*
	Czech Republic (formerly part of Czechoslovakia)	  	*
	Denmark	  	*
	Diego Garcia	  	*
	Djibouti	  	*
	Dominica	  	*
	Dominican Republic	  	*
	East Timor	  	*
	Ecuador	  	*
	Egypt	  	*
	El Salvador	  	*
	Equatorial Guinea	  	*
	Eritrea	  	*
	Estonia	  	*
	Ethiopia	  	*
	Faeroe Islands	  	*
	Falkland Islands	  	*
	Fiji Islands	  	*
	Finland	  	*
	France	  	*
	French Antilles	  	*
	French Guiana	  	*
	French Polynesia	  	*

  

 86 

			
	 Gabon
	  	*
	Gambia	  	*
	Georgia	  	*
	Germany	  	*
	Ghana	  	*
	Gibraltar	  	*
		
	 Country
	  	*
	Greece	  	*
	Greenland	  	*
	Grenada	  	*
	Guadeloupe	  	*
	Guam	  	*
	Guantanamo Bay	  	*
	Guatemala	  	*
	Guinea	  	*
	Guinea-Bissau	  	*
	Guyana	  	*
	Haiti	  	*
	Honduras	  	*
	Hong Kong	  	*
	Hungary	  	*
	Iceland	  	*
	India	  	*
	Indonesia	  	*
	Iran	  	*
	Iraq	  	*
	Ireland	  	*
	Israel	  	*
	Italy	  	*
	Ivory Coast	  	*
	Jamaica	  	*
	Japan	  	*
	Jordan	  	*
	Kazakhstan	  	*
	Kenya	  	*
	Kiribati	  	*
	Korea, D.P.R (North)	  	*
	Korea, Republic Of South	  	*
	Kuwait	  	*
	Kyrgyzstan	  	*
	Laos	  	*

  

 87 

			
	Latvia	  	*
	Lebanon	  	*
	Lesotho	  	*
	Liberia	  	*
	Libya	  	*
	Liechtenstein	  	*
	Lithuania	  	*
	Luxembourg	  	*
		
	 Country
	  	*
	Macao	  	*
	Macedonia	  	*
	Madagascar	  	*
	Malawi	  	*
	Malaysia	  	*
	Maldives	  	*
	Mali Republic	  	*
	Malta	  	*
	Marshall Islands	  	*
	Martinique	  	*
	Mauritania	  	*
	Mauritius	  	*
	Mayotte Island	  	*
	Mexico:	  	*
	 Guadalajara
	  	
	 Mexico City
	  	*
	 Monterrey
	  	*
	 All other Mexico calls: 
	  	*
	Micronesia	  	*
	Moldova	  	*
	Monaco	  	*
	Mongolia	  	*
	Montserrat	  	*
	Morocco	  	*
	Mozambique	  	*
	Myanmar (formerly Burma)	  	*
	Namibia	  	*
	Nauru Island	  	*
	Nepal	  	*
	Netherlands	  	*
	Netherlands Antilles	  	*

  

 88 

			
	 Nevis
	  	*
	New Caledonia	  	*
	New Zealand	  	*
	Nicaragua	  	*
	Niger	  	*
	Nigeria	  	*
	Niue Island	  	*
	Norway	  	*
	Oman	  	*
	Pakistan	  	*
	Palau	  	*
		
	 Country
	  	*
	Palestine	  	*
	Panama	  	*
	Papua New Guinea	  	*
	Paraguay	  	*
	Peru	  	*
	Philippines	  	*
	Poland	  	*
	Portugal	  	*
	Qatar	  	*
	Reunion Island	  	*
	Romania	  	*
	Russia	  	*
	Rwanda	  	*
	Saipan	  	*
	San Marino	  	*
	Sao Tome & Principe	  	*
	Saudi Arabia	  	*
	Senegal	  	*
	Serbia & Montenegro (Yugoslavia)	  	*
	Seychelles	  	*
	Sierra Leone	  	*
	Singapore	  	*
	Slovakia (formerly part of Czechoslovakia)	  	*
	Slovenia	  	*
	Solomon Island(s)	  	*
	Somalia	  	*
	South Africa	  	*
	Spain	  	*

  

 89 

			
	Sri Lanka	  	*
	St. Helena	  	*
	St. Kitts	  	*
	St. Lucia	  	*
	St. Pierre & Miquelon	  	*
	St. Vincent And The Grenadines	  	*
	Sudan	  	*
	Suriname	  	*
	Swaziland	  	*
	Sweden	  	*
	Switzerland	  	*
	Syria	  	*
	Taiwan	  	*
	Tajikistan	  	*
		
	 Country
	  	*
	Tanzania	  	*
	Thailand	  	*
	Togo	  	*
	Tokelau	  	*
	Tonga Islands	  	*
	Trinidad & Tobago	  	*
	Tunisia	  	*
	Turkey	  	*
	Turkmenistan	  	*
	Turks & Caicos Islands	  	*
	Tuvalu	  	*
	Uganda	  	*
	Ukraine	  	*
	United Arab Emirates	  	*
	United Kingdom	  	*
	Uruguay	  	*
	Uzbekistan	  	*
	Vanuatu	  	*
	Vatican City	  	*
	Venezuela	  	*
	Vietnam	  	*
	Wallis & Futuna	  	*
	Western Samoa	  	*
	Yemen	  	*
	Zambia	  	*

  

 90 

			
	Zimbabwe	  	*
		
	Inmarsat (satellite stations):	  	*
	 Including but not limited too:
	  	
	 Atlantic Ocean Region East (Atl Marist)
	  	
	 Indian Ocean Region (Ind Marist)
	  	
	 Pacific Ocean Region (Pac Marist)
	  	
	 Atlantic Ocean Region West (W Atl Marist)
	  	

  

 91 

 Schedule 2.0 
 Core Network 
 Core Network elements include, but are not limited to, the following: 
 Cell sites (towers, antennas, cabling, etc.) 
 Base stations and controllers

 Repeaters 
 Home Locations Registers (HLRs) 
 Mobile Switching Centers (MSCs) 
 Interworking Functions (IWFs) 

Service Control Points (SCPs) not listed as Network-Connected Elements under Schedule 2.1 below 
 Local and long distance interconnection 
 Public Switched Telephone Network (PSTN) Interconnection 
 Network surveillance and signaling networks 
 Trunking 
 Protocol processing and conversion systems 
 Provisioning system elements

 Billing Call Detailed Records (CDR) aggregation and delivery system 
 Packet Data Service Node (PDSNs) 
 Signal Transfer Points (STPs) 
  

 92 

 Schedule 2.1 
 Network-Connected Elements 
 Network-Connected Elements include, but are not limited to, the following: 

Voicemail 
 Short messaging service centers (SMSCs) 
 Pre-call rating system 
 Bulk Messaging Gateway 
 Sprint PCS Mobile Data Portal 
 Sprint PCS Mobile Voice Portal (including
the voice activated dialing platform) 
 Signal Control Points (SCPs) providing prepaid, call rating and extension dialing 
  

 93 

 Schedule 2.2 
 Sprint PCS Web Services 
 Sprint PCS Web Services include, but are not limited to, the following: 
 Location Services – information pertaining to the location of an End User, such as latitude/longitude, proximity or landmarks and all location based
derivatives including address, zip code, area code, direction, speed and all “refined” location information. 
 Content Billing Services
– Sprint PCS billing services used to bill End Users or Content providers for Content delivered to End Users. 
 End User Profile – Storage
and retrieval of End User service management information, such as preferences, favorites, privacy, directories, last location and presence. 
 Event and
Transaction Logging – the ability to record End User transactions and events and store the information for future reference. 
 Transaction
Control – the ability to block certain End User transactions and events, and to block certain Content from End User availability over PCS Services. 
 Event and Transaction Notification and Triggers – a service that notifies someone other than the End User or another system of a predefined event or triggers a predefined response to the End User. 
 Presence – an End User’s current status or availability on the Sprint PCS Network. 
  

 94 

 Schedule 3.0 
 Third Party Agreements 
 None 
  

 95 

 Schedule 4.0(a) 
 Sprint PCS Markets 
 Market Description 
 Alabama East / Georgia West 
 Opelika, AL 

Albany, GA 
 Columbus, GA

 La Grange, GA 
 Tifton, GA 
 Alabama South 
 Daleville, AL 
 Dothan, AL 
 Langdale, AL 
 Albany, NY 
 Amarillo/Abilene, TX 
 Arkansas Northwest 
 Bentonville, AR 
 Clarksville, AR 
 Fayetteville, AR 
 Forth Smith, AR 
 Greenwood, AR 
 Russellville, AR

 Siloam Springs, AR 
 Atlanta, GA

 Augusta, GA 
 Baton Rouge, LA 
 Beaumont, TX 
 Biloxi, MS 
 Birmingham, AL 
 Boston, MA 
 Bowling Green, KY 
 Buffalo, NY 
 Camden, SC 
 Charleston, WV 
 Charlotte, NC 
 Chicago, IL 
 Cincinnati, OH 
 Clarksburg, WV 
 Cleveland, OH 
 Columbia / Jefferson City, MO 
 Columbus, OH 
 Dallas, TX 
 Denver, CO 
  

 96 

 Des Moines, IA 
 Detroit, MI

 El Paso, TX / Albuquerque, NM 
 Evansville, IN 
 Flagstaff, AZ 
 Fresno, CA 
 Georgetown, SC 
  

 97 

 Sprint PCS Markets 
 Market Description 
 Georgia Central 
 Butler, GA 
 Cordele, GA 
 Dublin, GA 
 Gray, GA

 Hawkinsville, GA 
 Macon, GA 
 Milledgeville, GA 
 Perry, GA 
 Georgia North 
 Blue Ridge, GA 
 Calhoun, GA 
 Cedartown, GA 
 Chatsworth, GA

 Dalton, GA 
 Ellijay, GA 
 Jasper, GA 
 Rome, GA 
 Georgia South 
 Adel, GA 
 Brunswick, GA 
 Douglas, GA 
 Homerville, GA

 Valdosta, GA 
 Waycross, GA 
 Green Bay, WI 
 Goldsboro, NC

 Hartford, CT 
 Hendersonville, NC 
 Honolulu, HI 
 Hot Springs, AR 
 Houston, TX 
 Huntsville, AL 
 Indianapolis, IN 
 Jackson, MS 
 Jackson Hole, WY 
 Jacksonville, FL 
  

 98 

 Sprint PCS Markets 
 Market Description 
 Kansas Central 
 Marion, IL 
 Quincy, IL

 Emporia, KS 
 Junction City, KS 
 Manhattan, KS 
 McPherson, KS 
 Salina, KS 
 Cape Girardeau, MO 
 Hannibal, MO

 Kirksville, MO 
 Poplar Bluff, MO 
 Sikeston, MO 
  

 99 

 Sprint PCS Markets 
 Market Description 
 Knoxville, TN 
 Laredo, TX 
 Las Vegas, NV 
 Little Rock, AR 
 Logan, UT 
 Los Angeles, CA

 Louisville, KY 
 Lynchburg, VA 
 Manchester, NH 
 Medford, OR 
 Memphis, TN 
 Miami, FL 
 Milwaukee, WI 
 Minneapolis / St. Paul, MN 
 Missouri South 
 Carbondale, IL 
 Pittsburg, KS 
 Aurora, MO

 Branson, MO 
 Carbondale, MO 
 Fort Leonard Wood, MO 
 Joplin, MO 
 Lebanon, MO 
 Monett, MO 
 Rolla, MO

 Springfield, MO 
 West Plains, MO 
 Montgomery, AL 
 Myrtle Beach,
SC 
 Nashville, TN 
 New Orleans, LA 
 New York, NY 
 Oklahoma City, OK 
 Omaha, NE 
  

 100 

 Sprint PCS Markets 
 Market Description 
 Oregon North / Washington South 
 Bend, OR 
 Hermiston, OR

 Hood River, OR 
 Madras, OR 
 Milton-Freewater, OR 
 Pendleton, OR 
 The Dalles, OR 
 Cle Elum, WA 
 Ellensburg, WA

 Ephrata, WA 
 Kennewick, WA 
 Moses Lake, WA 
 Pasco, WA 
 Prosser, WA 
 Sunnyside, WA 
 Walla Walla, WA

 Wenatchee, WA 
 White Salmon, WA 
 Yakima, WA 
 Orlando, FL 
 Pensacola, FL 
 Philadelphia, PA

 Phoenix, AZ 
 Pittsburgh, PA 
 Portland, OR 
 Pueblo, CO 
 Poughkeepsie, NY 
 Puerto Rico, PR 
 Reno, NV 
 Richmond, VA 
 Roanoke, VA 
 Salt Lake City, UT 
 San Antonio, TX 
 San Diego, CA 
 San Francisco, CA 
 Savannah, GA 
 Seattle, WA 
 Shreveport, LA 
 Spartanburg, SC 
 Spokane, WA 
 St. Louis, MO 
 Syracuse, NY 
  

 101 

 Sprint PCS Markets 
 Market Description 
 Tallahassee, FL 
 Tampa, FL 
 Terre Haute, IN 
 Texarkana, TX 
 Virgin Islands, VI 
 Wichita, KS 
 Wichita Falls, TX / Stillwater, OK 
 Washington DC 
  

 102 

 Schedule 4.0(b) 
 Sprint PCS Service Provider Affiliate Markets 
 iPCS (formerly Horizon) 
 Market Description 
 Cambridge, OH 
 Erie, PA 
 Ft. Wayne, IN 
 Jamestown, NY 
 Kingsport, TN 
 Lima, OH 
 Logan, WV 
 South Bend, IN 
 Williamsport, PA 
  

 103 

 Sprint PCS Service Provider Affiliate Markets 
 iPCS 
 Market Description

 Cedar Rapids, IA 
 Grand Island, IA 
 Grand Rapids, MI 
 Illinois North 
 Bloomington, IL 
 Champaign, IL

 Charleston, IL 
 Danville, IL 
 Decatur, IL 
 Effingham, IL 
 Galesburg, IL 
 Kankakee, IL 
 La Salle, IL

 Lincoln, IL 
 Litchfield, IL 
 Macomb, IL 
 Mattoon, IL 
 Mendota, IL 
 Pekin, IL 
 Peoria, IL

 Illinois South 
 Jacksonville, IL

 Mount Vernon, IL 
 Springfield, IL 
 Taylorville, IL 
 Vandalia, IL 
 Quad Cities 
 Burlington, IA 
 Clinton, IA 
 Davenport, IA 
 Dubuque, IA

 Fort Madison, IA 
 Keokuk, IA 
 Muscatine, IA 
 Waterloo, IA 
 Geneseo, IL 
 Kewanee, IL 
 Rock Island, IL

 Sterling, IL 
  

 104 

 Sprint PCS Service Provider Affiliate Markets 
 Northern PCS 
 Market
Description 
 Minnesota Central 
 Alexandria, MN 
 Bemidji, MN 
 Brainerd, MN 
 Detroit Lakes, MN 
 Duluth, MN 
 E Grand Forks, MN

 Fergus Falls, MN 
 Grand Rapids, MN 
 Hibbing, MN 
 Hinckley, MN 
 Hutchinson, MN 
 Little Falls, MN 
 Marshalltown, MN

 Moorhead, MN 
 St. Cloud, MN 
 Virginia, MN 
 Wadena, MN 
 Wahpeton, MN 
 Wilmar, MN 
 Zimmerman, MN

 Fargo, ND 
 Grand
Forks, ND 
 Jamestown, ND 
 Minnesota
South 
 Albert Lea, MN 
 Austin, MN 
 Fairbault, MN 
 Fairmont, MN 
 Mankato, MN 
 Marshalltown, MN 
 New Ulm, MN

 Owatonna, MN 
 Red Wing, MN 
 Rochester, MN 
 Waseca, MN 
 Worthington, MN 
  

 105 

 Sprint PCS Service Provider Affiliate Markets 
 Shentel 
 Market Description

 Hagerstown, MD 
 York / Harrisburg, PA 
 Swiftel Communications 
 Market Description 
 Sioux City, IA 
 Sioux
Falls, SD 
  

 106 

 Schedule 7.0 
 MUTUAL NON-DISCLOSURE AGREEMENT 
 This Nondisclosure Agreement (this “Agreement”) is dated as of
October 4, 2001, between Virgin Mobile USA LLC, a Delaware limited liability company (“VMU”) and Sprint Spectrum L.P., a Delaware partnership (the “Company”). 
 RECITALS 
  

	A.	In connection with the evaluation or pursuit of a mutually beneficial business opportunity, VMU and the Company may disclose valuable proprietary information to each other relating
to their respective operations and business. 

  

	B.	VMU and the Company want to protect the confidentiality of, maintain their respective rights in and prevent the unauthorized use and disclosure of such information.

 VMU AND THE COMPANY HEREBY AGREE AS FOLLOWS: 
 1. Confidential Information. As used in this Agreement, “Confidential Information” means all information, currently existing or subsequently created during the term of the relationship between the
parties, that a party and/or any of its affiliates owns or controls that is not generally known to the public, whether of a technical, business or other nature (including, without limitation, trade secrets, know-how and information relating to the
technology, customers, strategic partners, business plans, promotional and marketing objectives and timing, finances and other business affairs of such party or otherwise related to that party’s business, operations, management, assets,
properties, condition, financial or otherwise, or results of operations), that is disclosed by one party (the “Disclosing Party”) to the other party (the “Receiving Party”) or that is otherwise learned by the Receiving Party in
the course of its discussions or business dealings with, or its physical, telephonic or electronic access to the premises of, the Disclosing Party, and that has been identified as being proprietary and/or confidential or that by the nature of the
circumstances surrounding the disclosure or receipt ought to be treated as proprietary and confidential. The parties agree that any Confidential Information disclosed prior to the date hereof shall be protected by the terms of this Agreement.

 2. Use and Ownership of Confidential Information. The Receiving Party, except as expressly provided in this Agreement, will not disclose
Confidential Information to anyone without the Disclosing Party’s prior written consent. In addition, the Receiving Party will not use, or permit others to use, Confidential Information for any purpose other than its evaluation of the other
party’s products and/or services and, if desired by the parties, negotiation and consummation of a business transaction between the parties pursuant to a definitive agreement. The Receiving Party will take all reasonable measures to avoid
disclosure, dissemination or unauthorized use of Confidential Information, including, at a minimum, those measures it takes to protect its own confidential information of a similar nature. All Confidential Information will remain the exclusive
property of the Disclosing Party, and the Receiving Party will have no rights, by license or otherwise, to use the Confidential Information except as expressly provided herein. 
 3. Exceptions. The provisions of Section 2 will not apply to any information that either party establishes by written documentation (i) is or becomes publicly available without breach of this
Agreement; (ii) was known to the Receiving Party prior to its receipt from the Disclosing Party; (iii) is rightfully received from a third party that did not acquire or disclose such information by a wrongful or tortious act; or
(iv) was developed by the Receiving Party without reference to any Confidential Information. 
  

 107 

 4. Disclosures to Governmental Entities. If the Receiving Party becomes legally obligated to disclose Confidential
Information by any governmental entity with jurisdiction over it, including any court of competent jurisdiction, the Receiving Party will give the Disclosing Party prompt written notice to allow the Disclosing Party to seek a protective order or
other appropriate remedy. Such notice must include, without limitation, identification of the information to be so disclosed and a copy of the order. The Receiving Party will disclose only such information as it reasonably deems is legally required
and will use reasonable efforts to obtain confidential treatment for any Confidential Information that is so disclosed. 
 5. Compliance with Laws;
Exportation/ Transmission of Confidential Information. Both parties will comply with all applicable federal, state, and local statutes, rules and regulations, including, but not limited to, United States export control laws and regulations as
they currently exist and as they may be amended from time to time. 
 6. No Required Disclosure. Nothing in this Agreement shall be construed
as an obligation for either party to disclose proprietary information or evaluation materials to the other party. The Disclosing Party shall not be considered to have made or make any representation or warranty as to the accuracy or completeness of
any information provided hereunder. Receiving Party and its affiliates will be responsible for conducting and completing its own independent investigation, evaluation and due diligence relative to engaging in a transaction with the Disclosing Party.

 7. Receiving Party Personnel. The Receiving Party will restrict the possession, knowledge, development and use of Confidential Information to its
employees, consultants, affiliates and entities controlled by or controlling it (collectively, “Personnel”) who have a need to know Confidential Information in connection with the purposes set forth in Section 2. The Receiving
Party’s Personnel will have access only to the Confidential Information they need for such purposes, and it will ensure that its Personnel comply with this Agreement. The Receiving Party will be liable for any breach of this Agreement by its
Personnel and will promptly notify the Disclosing Party of any such breach. 
 8. Return of Confidential Information. In the event that the
parties determine not to proceed with discussions with respect to the business opportunity or upon the Disclosing Party’s written request, the Receiving Party will promptly, at the Disclosing Party’s instruction, return all tangible
material embodying Confidential Information and will destroy (or, in the case of electronic embodiments, permanently erase) all other tangible material containing or reflecting Confidential Information (in any form and including, without limitation,
all summaries, copies and excerpts of Confidential Information) in its possession or under its control, whether prepared by the Disclosing Party, the Receiving Party, or their respective advisors or otherwise) and will not retain any copies extracts
or other reproductions in whole or in part of such materials. All documents, memoranda, notes and other writings whatsoever prepared by the Receiving Party and its affiliates based on the Confidential Information shall be destroyed, and such
destruction shall be certified in writing to the Disclosing Party by an authorized officer supervising such destruction. 
 9. Independent
Development. The Disclosing Party acknowledges that the Receiving Party may currently or in the future be developing information internally, or receiving information from other parties, that is similar to the Confidential Information.
Accordingly, nothing in this Agreement will be construed as a representation or agreement that the Receiving Party will not develop or have developed for it products, concepts, systems or techniques that are similar to or compete with the products,
concepts, systems or techniques contemplated by or embodied in the Confidential Information, provided that the Receiving Party can document such development and does not violate any of its obligations under this Agreement. 
 10. Injunctive Relief. The Receiving Party acknowledges that disclosure or use of Confidential Information in violation of this Agreement could cause irreparable
harm to the Disclosing Party for which monetary damages may be difficult to ascertain or an inadequate remedy. The Receiving Party therefore agrees that the Disclosing Party will have the right, in addition to its other rights and remedies, to seek
injunctive relief for any violation of this Agreement without posting bond, or by posting bond at the lowest amount required by law. 
  

 108 

 11. Limited Relationship. This Agreement will not create a joint venture, partnership or other formal business
relationship or entity of any kind, or an obligation to form any such relationship or entity. Each party will act as an independent contractor and not as an agent of the other party for any purpose, and neither will have the authority to bind the
other in the absence of a definitive agreement governing the prospective transaction. 
 12. Entire Agreement; Amendment. This Agreement constitutes
the entire agreement between the parties relating to the matters discussed herein and supersedes all prior oral and written understandings with respect to any information disclosed or received under this Agreement. This Agreement may be amended or
modified only with the mutual written consent of the parties. 
 13. Term and Termination. This Agreement is intended to cover Confidential
Information disclosed or received by either party prior or subsequent to the date of this Agreement. Unless otherwise earlier terminated, this Agreement will automatically expire on the earlier of (i) the date that is twenty (20) years
from the date first written above and (ii) the date on which the PCS Services Agreement between VMU and the Company is terminated; provided that each party’s obligations with respect to the other party’s Confidential Information
disclosed or received prior to termination or expiration will survive for two (2) additional years following the expiration or termination of this Agreement. 
 14. Non-waiver. It is understood that any failure or delay by either party to enforce such party’s rights, powers or privileges hereunder, including, without limitation, the other party’s strict performance of any provision
of this Agreement, will not constitute a waiver of its right to subsequently enforce such provision or any other provision of this Agreement. 
 15.
Attorney Fees. In the event any court action is commenced by one party against the other, the substantially prevailing party is entitled to recover its out-of-pocket and court costs and reasonable attorney fees. 
 16. Miscellaneous. This Agreement will be governed by internal laws of the State of New York, may be executed in counterpart copies, and, in the absence of an
original signature, faxed signatures will be considered the equivalent of an original signature. Each party hereby waives its right to a jury trial for any claims that may arise out of this Agreement. If a provision of this Agreement is held invalid
under any applicable law, such invalidity will not affect any other provision of this Agreement that can be given effect without the invalid provision. Further, all terms and conditions of this Agreement will be deemed enforceable to the fullest
extent permissible under applicable law, and, when necessary, the court is requested to reform any and all terms or conditions to give them such effect. VMU may assign this agreement to an affiliated entity. The terms of this Agreement shall be
binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. 
 The parties have executed this Agreement on the date
first written above. 
  

									
	 VIRGIN MOBILE USA, LLC
	 		 	SPRINT SPECTRUM L.P.
					
	 By:
	 	  
	 		 	By:	 	  

					
	 Name:
	 	  
	 		 	Name:	 	  

					
	 Title:
	 	  
	 		 	Title:	 	  

					
	 Date:
	 	  
	 		 	Date:	 	  

  

 109 

 Schedule 8.0 
 Dear [VMU], 
 We have completed the XX quarter review of the XXXX Network Cost True-up. As of now, we estimate VMU will be in a
[“net-payable” / “net refund”] position to Sprint. Based on current projections, [VMU will owe Sprint an additional #.#% of total invoiced charges for Voice, SMS, and 3G Data usage / Sprint will owe VMU an additional #.#% of
total invoiced charges for Voice, SMS, and 3G Data usage]. 
 As specifically stated in the PCS Services Agreement, by providing this estimate we are in no
way assuming any responsibility for VMU’s financial reporting. While we will provide information as agreed by the parties, VMU will remain solely responsible for ensuring that appropriate disclosures are made to its investors and potential
investors. 
 Please contact me with any questions or concerns. 
 Sincerely, 
 [Sprint PCS] 
  

	
	  

  

 110

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