Document:

EX-10.1

	 	 	 	 	 	 	 	 	 
	 	 	 	 	AMENDED AND RESTATED COPY
	 	 	 	 	US$275,000,000
	 	 	 	 	FACILITY AGREEMENT
	 	 	 	 	for
	 	 	 	 	GOLDEN TELECOM INC.
	 	 	 	 	EDN SOVINTEL LLC
	 	 	 	 	and
	 	 	 	 	GTS FINANCE INC.
	as Original Borrowers and Original Guarantors
	 	 	 	 	arranged by
	 	 	 	 	CITIBANK N.A., London Branch
	 	 	 	 	and
	 	 	 	 	ING BANK N.V.
	 	 	 	 	as Arranger
	 	 	 	 	with
	 	 	 	 	CITIBANK INTERNATIONAL PLC
	 	 	 	 	acting as Agent
	 	 	 	 	TERM FACILITY AGREEMENT DATED 25 JANUARY 2007 AS
	 	 	 	 	AMENDED AND RESTATED ON 22 MARCH 2007

	 	 	 
	CONTENTS

	 
	 	 
	Clause

	 	Page

	1.	 	Definitions And Interpretation

	2.	 	The Facilities

	3.	 	Purpose

	4.	 	Conditions Of Utilisation

	5.	 	Utilisation

	6.	 	Repayment

	7.	 	Prepayment And Cancellation

	8.	 	Interest

	9.	 	Interest Periods

	10.	 	Changes To The Calculation Of Interest

	11.	 	Fees

	12.	 	Tax Gross Up And Indemnities

	13.	 	Increased Costs

	14.	 	Other Indemnities

	15.	 	Mitigation By The Lenders

	16.	 	Costs And Expenses

	17.	 	Guarantee And Indemnity

	18.	 	Representations

	19.	 	Information Undertakings

	20.	 	Financial Covenants

	21.	 	General Undertakings

	22.	 	Events Of Default

	23.	 	Changes To The Lenders

	24.	 	Changes To The Obligors

	25.	 	Role Of The Agent And The Arranger

	26.	 	Conduct Of Business By The Finance Parties

	27.	 	Sharing Among The Finance Parties

	28.	 	Payment Mechanics

	29.	 	Set-Off

	30.	 	Notices

	31.	 	Calculations And Certificates

	32.	 	Partial Invalidity

	33.	 	Remedies And Waivers

	34.	 	Amendments And Waivers

	35.	 	Counterparts

	36.	 	Governing Language

	37.	 	USA Patriot Act

	38.	 	Governing Law

	39.	 	Enforcement

	40.	 	Arbitration

	41.	 	Waiver Of Jury Trial

	 	 	Schedule 1 The Original Parties

	 	 	 	Part I The Original Obligors

	 	 	 	Part II The Original Lenders

	 	 	Schedule 2 Conditions Precedent

	 	 	 	Part I Conditions Precedent To Initial Utilisation

	 	 	 	Part II Conditions Precedent Required To Be Delivered By An Additional Obligor

	 	 	Schedule 3 Utilisation Request

	 	 	Schedule 4 Mandatory Cost Formulae

	 	 	Schedule 5 Form Of Transfer Certificate

	 	 	Schedule 6 Form Of Accession Letter

	 	 	Schedule 7 Form Of Resignation Letter

	 	 	Schedule 8 Form Of Compliance Certificate

	 	 	Schedule 9 Existing Security

	 	 	Schedule 10 Lma Form Of Confidentiality Undertaking

	 	 	Schedule 11 Timetables

	 	 	Schedule 12 List Over Material Subsidiaries

	 	 	Signatures

1

THIS AGREEMENT is dated 25 January 2007 as amended and restated on 22 March 2007 and
made between:

	(1)	 	GOLDEN TELECOM INC. (the “Company”);

	(2)	 	THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Original Parties)
as original borrowers (together with the Company the “Original Borrowers”);

	(3)	 	THE SUBSIDIARIES of the Company listed in Part I of Schedule 1 (The Original Parties)
as original guarantors (together with the Company the “Original Guarantors”);

	(4)	 	CITIBANK, N.A. LONDON BRANCH and ING BANK N.V. as mandated lead arrangers (whether
acting individually or together the “Arranger”);

	(5)	 	THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original Parties) as
lenders (the “Original Lenders”); and

	(6)	 	CITIBANK INTERNATIONAL PLC as agent of the other Finance Parties (the “Agent”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

	1.	 	DEFINITIONS AND INTERPRETATION

	1.1	 	Definitions

In this Agreement:

"Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of
Accession Letter).

"Account Bank” means ZAO Citibank.

"Acquisition Agreement” means the share purchase agreement dated 22 February 2007 in
connection with the acquisition of part of the Corbina Telecom Group as referred to in
Clause 21.13 (Acquisitions).

"Additional Borrower” means a company which becomes an Additional Borrower in accordance
with Clause 24 (Changes to the Obligors).

"Additional Cost Rate” has the meaning given to it in Schedule 4 (Mandatory Cost formulae).

"Additional Guarantor” means a company which becomes an Additional Guarantor in accordance
with Clause 24 (Changes to the Obligors).

"Additional Obligor” means an Additional Borrower or an Additional Guarantor.

"Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding
Company of that person or any other Subsidiary of that Holding Company.

"Amendment Agreement” means the amendment agreement dated 22 March 2007 entered into
between, among others, the Original Borrowers, the Arranger, the Original Lenders and the
Agent.

"Anti-Terrorism Law” means each of:

	 	(a)	 	Executive Order No. 13224 of September 23, 2001 — Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support
Terrorism (the Executive Order);

	 	(b)	 	the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known as
the USA Patriot Act);

	 	(c)	 	the Money Laundering Control Act of 1986, Public Law 99-570;

	 	(d)	 	the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq, the
Trading with the Enemy Act, 50 U.S.C. App. §§ 1 et seq, any Executive Order or
regulation promulgated thereunder and administered by the Office of Foreign Assets
Control (“OFAC”) of the U.S. Department of the Treasury; and

	 	(e)	 	any similar law enacted in the United States of America subsequent to the date
of this Agreement.

"Authorisation” means an authorisation, consent, approval, resolution, licence, exemption,
filing or, if required, notarisation or registration.

"Availability Period” means:

	 	(a)	 	in relation to Facility A, the period from and including the First Amendment
Effective Date to and including the day falling one week before the Facility A
Repayment Date; and

	 	(b)	 	in relation to Facility B, the period from and including the First Amendment
Effective Date to and including the day falling eighteen Months after the date of this
Agreement.

"Available Commitment” means, in relation to a Facility, a Lender’s Commitment under that
Facility minus:

	 	(a)	 	the amount of its participation in any outstanding Loans under that Facility;
and

	 	(b)	 	in relation to any proposed Utilisation, the amount of its participation in
any Loans under that Facility that are due to be made on or before the proposed
Utilisation Date.

"Available Facility” means, in relation to a Facility, the aggregate for the time being of
each Lender’s Available Commitment in respect of that Facility.

"Bankruptcy Law” means, in relation to any Russian Obligor, Federal Law No. 127-FZ of 26
October 2002 on Insolvency (Bankruptcy), as amended or replaced from time to time.

"Borrower” means an Original Borrower (including, for the avoidance of doubt, a Facility A
Borrower) or an Additional Borrower unless it has ceased to be a Borrower in accordance with
Clause 24 (Changes to the Obligors).

"Borrowings” shall have the meaning ascribed thereto in Clause 20.1 (Financial definitions).

"Break Costs” means the amount (if any) by which:

	 	(a)	 	the interest which a Lender should have received for the period from the date
of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last
day of the current Interest Period in respect of that Loan or Unpaid Sum, had the
principal amount or Unpaid Sum received been paid on the last day of that Interest
Period;

exceeds:

	 	(b)	 	the amount which that Lender would be able to obtain by placing an amount
equal to the principal amount or Unpaid Sum received by it on deposit with a leading
bank in the Relevant Interbank Market for a period starting on the Business Day
following receipt or recovery and ending on the last day of the current Interest
Period.

"Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in London, Moscow and New York City.

"Code” means, at any date, the U.S. Internal Revenue Code of 1986 and the regulations
promulgated and the judicial and administrative decisions rendered under it, all as the same
may be in effect at such date.

"Commitments” means a Facility A Commitment or a Facility B Commitment or, as the context
may require, the Facility A Commitments and the Facility B Commitments.

"Companies Law” means Federal Law of the Russian Federation no. 14-FZ of 8 February 1998 on
Limited Liability Companies.

"Compliance Certificate” means a certificate substantially in the form set out in Schedule 8
(Form of Compliance Certificate).

"Confidentiality Undertaking” means a confidentiality undertaking substantially in a
recommended form of the LMA as set out in Schedule 10 (LMA Form of Confidentiality
Undertaking) or in any other form agreed between the Company and the Agent.

"Currency Law” means Federal Law of the Russian Federation No. 173-FZ of 10 December 2003 On
Currency Regulation and Control, together with any regulations adopted or issued by the
Government of the Russian Federation or the Central Bank of the Russian Federation pursuant
thereto or implementing the provisions thereof (as amended or replaced from time to time).

"Default” means an Event of Default or any event or circumstance specified in Clause 22
(Events of Default) which would (with the expiry of a grace period, the giving of notice,
the making of any determination under the Finance Documents or any combination of any of the
foregoing) be an Event of Default.

"Designated Person” means

	 	(a)	 	Telenor ASA or any Affiliate thereof;

	 	(b)	 	Alfa Group or any Affiliate thereof;

	 	(c)	 	any person in which Telenor ASA and Alfa Group directly or indirectly owns
more than 50% of the share capital;

	 	(d)	 	any reputable international telecommunications operator which is rated at
least BBB+ by Standard & Poor’s Corporation or at least Baa1 by Moody’s Investor
Services Inc.; or

	 	(e)	 	any other persons approved by the Agent (acting on the instructions of the
Majority Lenders, acting reasonably).

"Environmental Claim” means any claim, proceeding or investigation by any person in respect
of any Environmental Law.

"Environmental Law” means any applicable law in any jurisdiction in which any member of the
Group conducts business which relates to the pollution or protection of the environment or
harm to or the protection of human health or the health of animals or plants.

"Environmental Permits” means any permit, licence, consent, approval and other authorisation
and the filing of any notification, report or assessment required under any Environmental
Law for the operation of the business of any member of the Group conducted on or from the
properties owned or used by the relevant member of the Group.

"ERISA” means, at any date, the United States Employee Retirement Income Security Act of
1974 and the regulations promulgated and rulings issued thereunder, all as the same may be
in effect at such date.

"Event of Default” means any event or circumstance specified as such in Clause 22 (Events of
Default).

"Facilities” means the term loan facilities made available under this Agreement as described
in Clause 2 (The Facilities).

"Facility A Borrower” means each of Golden Telecom Inc. and GTS Finance Inc.

"Facility A Commitment” means:

	 	(a)	 	in relation to an Original Lender, the amount set opposite its name
under the heading “Facility A Commitment” in Part II of Schedule 1 (The Original
Parties) and the amount of any other Facility A Commitment transferred to it
under this Agreement; and

	 	(b)	 	in relation to any other Lender, the amount of any Facility A
Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.

"Facility A Loan” means a loan made or to be made under Facility A or the principal amount
outstanding for the time being of that loan.

"Facility A Repayment Date” means the date falling three Months after the First Amendment
Effective Date.

"Facility B Commitment” means:

	 	(a)	 	in relation to an Original Lender, the amount set opposite its name under the
heading “Facility B Commitment” in Part II of Schedule 1 (The Original Parties) and the
amount of any other Facility B Commitment transferred to it under this Agreement; and

	 	(b)	 	in relation to any other Lender, the amount of any Facility B Commitment
transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.

"Facility B Loan” means a loan made or to be made under Facility B or the principal amount
outstanding for the time being of that loan.

"Facility B Repayment Date” means each of the dates specified in Clause 6.2 (Repayment of
Facility B Loans) as Facility B Repayment Dates.

"Facility B Repayment Instalment” means each instalment for repayment of the Facility B
Loans referred to in 6.2 (Repayment of Facility B Loans).

"Facility Office” means the office or offices notified by a Lender to the Agent in writing
on or before the date it becomes a Lender (or, following that date, by not less than five
Business Days’ written notice) as the office or offices through which it will perform its
obligations under this Agreement.

"Fee Letter” means any letter or letters dated on or about the date of this Agreement
between the Arranger and the Company (or the Agent and the Company) setting out any of the
fees referred to in Clause 11 (Fees).

"Finance Document” means this Agreement, the Mandate Letter, any Fee Letter, any Accession
Letter, any Resignation Letter, the Amendment Agreement and any other document designated as
such by the Agent and the Company.

"Finance Party” means the Agent, the Arranger, the Account Bank or a Lender.

"Financial Indebtedness” means any indebtedness for or in respect of:

	 	(a)	 	Borrowings; and

	 	(b)	 	any derivative transaction entered into in connection with protection against
or benefit from fluctuation in any rate or price (and, when calculating the value of
any derivative transaction, only the marked to market value shall be taken into
account).

"First Amendment Effective Date” has the meaning given to it in the Amendment Agreement.

"Group” means the Company and its Material Subsidiaries for the time being.

"Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to
be a Guarantor in accordance with Clause 24 (Changes to the Obligors).

"Holding Company” means, in relation to a company or corporation, any other company or
corporation in respect of which it is a Subsidiary.

"Information Memorandum” means the document concerning the Original Obligors which, at the
Company’s request and on its behalf, was prepared in relation to this transaction, approved
by the Company and distributed by the Arranger prior to the Syndication Date in connection
with syndication.

"Interest Period” means, in relation to a Loan, each period determined in accordance with
Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with Clause 8.3 (Default interest).

"IRS” means the United States Internal Revenue Service or any successor thereto.

"Legal Reservations” means:

	 	(a)	 	the principle that equitable remedies may be granted or refused at the
discretion of a court and the limitation of enforcement by laws relating to bankruptcy,
liquidation, insolvency, reorganisation, court schemes, moratoria, administration and
other laws generally affecting the rights of creditors;

	 	(b)	 	the time barring of claims under the Limitation Acts, the possibility that an
undertaking to assume liability for or indemnify a person against non-payment of stamp
duty may be void and defences of set-off or counterclaim; and

	 	(c)	 	similar principles, rights and defences under the laws of any applicable
jurisdiction.

"Lender” means:

	 	(a)	 	any Original Lender; and

	 	(b)	 	any bank, financial institution, trust, fund or other entity which has become
a Party in accordance with Clause 23 (Changes to the Lenders),

which in each case has not ceased to be a Party in accordance with the terms of this
Agreement.

"LIBOR” means, in relation to any Loan:

	 	(a)	 	the applicable Screen Rate; or

	 	(b)	 	(if no Screen Rate is available for dollars for the Interest Period of that
Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Agent at its request quoted by the Reference Banks to leading banks in
the London interbank market,

as of the Specified Time on the Quotation Day for the offering of deposits in dollars and
for a period comparable to the Interest Period for that Loan.

"LMA” means the Loan Market Association.

"Loan” means a Facility A Loan or a Facility B Loan.

"Loan Passport” means the certificate required to be issued in relation to this Agreement by
the Account Bank or, as the case may be, by the relevant territorial division of the Central
Bank of the Russian Federation, in accordance with the Currency Law.

"Majority Lenders” means:

	 	(a)	 	if there are no Loans then outstanding, a Lender or Lenders whose Commitments
aggregate more than 662/3% of the Total Commitments (or, if the
Total Commitments have been reduced to zero, aggregated more than
662/3% of the Total Commitments immediately prior to the
reduction); or

	 	(b)	 	at any other time, a Lender or Lenders whose participations in the Loans then
outstanding aggregate more than 662/3% of all the Loans then
outstanding.

“Mandate Letter” means the letter dated 17 November 2006 between the Arranger, the Company
and others.

"Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance
with Schedule 4 (Mandatory Cost formulae).

"Margin” means:

	 	(a)	 	1.5 per cent. per annum from and including the date of this Agreement to and
including date falling 24 Months after the date of this Agreement; and

	 	(b)	 	2 per cent per annum thereafter.

"Margin Stock” means margin stock or “margin security” within the meaning of Regulations T,
U and X.

"Material Adverse Effect” means a material adverse effect on:

	 	(a)	 	the consolidated business, operations, or financial condition of the Company,
Sovintel or the Group taken as a whole;

	 	(b)	 	the ability of an Obligor to perform and comply with its obligations under any
Finance Documents in all material respects; or

	 	(c)	 	the validity, legality or enforceability of any Finance Document or the rights
or remedies of any Finance Party thereunder.

"Material Subsidiary” means, at any time, a Subsidiary of the Company which:

	 	(a)	 	is listed in Schedule 12; and/or

	 	(b)	 	has profits before interest and tax (calculated on the same basis as
Consolidated EBITDA, as defined in Clause 20 (Financial covenants) representing ten per
cent or more of the Consolidated EBITDA, as defined in Clause 20 (Financial covenants);
and/or

	 	(c)	 	has fixed assets representing ten per cent or more of the consolidated fixed
assets of the Reporting Group; and/or

	 	(d)	 	has turnover representing ten per cent or more of the consolidated turnover of
the Reporting Group.

in each case calculated on a consolidated basis.

Compliance with the conditions set out in paragraphs (b), (c) and (d) shall be determined by
reference to the latest unaudited and unconsolidated financial statements of that Subsidiary
and the latest audited consolidated financial statements of the Reporting Group but if a
Subsidiary has been acquired since the date as at which the latest audited consolidated
financial statements of the Reporting Group were prepared, the financial statements shall be
adjusted in order to take into account the acquisition of that Subsidiary (that adjustment
being certified by the Reporting Group’s auditors as representing an accurate reflection of
the revised Consolidated EBITDA, consolidated fixed assets or turnover of the Reporting
Group).

A report by the auditors of the Company that a Subsidiary is or is not a Material Subsidiary
shall, in the absence of manifest error, be conclusive and binding on all Parties.

"Month” means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	 	(a)	 	(subject to paragraph (c) below) if the numerically corresponding day is not a
Business Day, that period shall end on the next Business Day in that calendar month in
which that period is to end if there is one, or if there is not, on the immediately
preceding Business Day;

	 	(b)	 	if there is no numerically corresponding day in the calendar month in which
that period is to end, that period shall end on the last Business Day in that calendar
month; and

	 	(c)	 	if an Interest Period begins on the last Business Day of a calendar month,
that Interest Period shall end on the last Business Day in the calendar month in which
that Interest Period is to end.

The above rules will only apply to the last Month of any period.

"Obligor” means a Borrower or a Guarantor.

"Original Financial Statements” means:

	 	(a)	 	in relation to the Company, the audited consolidated financial statements of
the Reporting Group, for the financial year ended 31 December 2005; and

	 	(b)	 	in relation to each Original Obligor other than the Company, its
unconsolidated and unaudited financial statements for its financial year ended 31
December 2005.

"Original Obligor” means an Original Borrower or an Original Guarantor.

"Participating Member State” means any member state of the European Communities that adopts
or has adopted the euro as its lawful currency in accordance with legislation of the
European Community relating to Economic and Monetary Union.

"Party” means a party to this Agreement.

"Qualifying Lender” has the meaning given to it in Clause 12 (Tax gross-up and indemnities).

"Quotation Day” means, in relation to any period for which an interest rate is to be
determined, two Business Days before the first day of that period unless market practice
differs in the Relevant Interbank Market, in which case the Quotation Day will be determined
by the Agent in accordance with market practice in the Relevant Interbank Market (and if
quotations would normally be given by leading banks in the Relevant Interbank Market on more
than one day, the Quotation Day will be the last of those days).

"Reference Banks” means the principal London offices of Citibank N.A. and ING Bank N.V. or
such other banks as may be appointed by the Agent in consultation with the Company.

"Regulations T, U and X” means, respectively, Regulations T, U and X of the Board of
Governors of the Federal Reserve System of the United States (or any successor) as now and
from time to time in effect from the date of this Agreement.

"Relevant Interbank Market” means the London interbank market.

"Repeating Representations” means each of the representations set out in Clauses 18.1
(Status) to 18.8 (Good title to assets), Clause 18.10 (No default), Clause 18.11 (No
misleading information), paragraph (c) of Clause 18.12 (Financial Statements) by reference
to the date of this Agreement and Clause 18.13 (Pari passu ranking) to Clause 18.26 (No
Agent).

"Reporting Group” means the Company and its Subsidiaries from time to time.

"Resignation Letter” means a letter substantially in the form set out in Schedule 7 (Form of
Resignation Letter).

"Restricted Party” means any person listed:

	 	(a)	 	in the Annex to the Executive Order;

	 	(b)	 	on the “Specially Designated Nationals and Blocked Persons” list maintained by
the OFAC; or

	 	(c)	 	in any successor list to either of the foregoing.

"Russia” means the Russian Federation and any republic or political sub-division thereof
(and “Russian” has a corresponding meaning).

"Russian Borrower” means a Borrower whose jurisdiction of incorporation is the Russian
Federation.

"Russian Corporate Reorganisation” means a solvent reorganisation (reorganisatsiya
obschestva), whether by way of merger (sliyaniye obschestva), company accession
(prisoedineniye obschestva), company division (razdeleniye obschestva), company separation
(vydeleniye obschestva) or company transformation (preobrazovaniye obschestva) or otherwise.

"Russian Guarantor” means a Guarantor whose jurisdiction of incorporation is the Russian
Federation.

"Russian Insolvency Proceedings” means, in respect of an entity incorporated under the laws
of the Russian Federation, any of the following:

	 	(a)	 	the implementation of measures to prevent its bankruptcy, including but not
limited to the implementation of pre-juridical recovery (dosudebnaya sanatsiya) in
respect of it;

	 	(b)	 	its seeking, consenting, or acquiescing to the introduction of proceedings for
its liquidation or bankruptcy, or the appointment of a liquidation commission
(likvidatsionnaya komissiya) or the granting of other similar relief with respect to
its debts, other than a solvent liquidation of such entity pursuant to a Russian
Corporate Reorganisation;

	 	(c)	 	the presentation or filing of a petition in respect of it in any court or
arbitrazh court or other similar body or agency alleging, or for, its bankruptcy,
insolvency, dissolution or liquidation, or the initiation of any analogous proceeding;

	 	(d)	 	the institution of the supervision (nablyudeniye), financial recovery
(finansovoe ozdorovleniye), external management (vneshneye upravleniye) or bankruptcy
management (konkursnoye proizvodstvo) of it, and/or the appointment of a temporary
manager (vremenniy upravlyaushchiy), administrative manager (administrativniy
upravlyaushchiy), external manager (vneshniy upravlyaushchiy), bankruptcy manager
(konkursniy upravlyaushchiy) or similar officer of it;

	 	(e)	 	the convening or announcement of an intention to convene a meeting of its
creditors for the purposes of considering an amicable settlement, or its entry into a
voluntary arrangement (mirovoye soglasheniye);

	 	(f)	 	the taking of any decision on dissolution, liquidation or similar proceeding
with respect to it by any court or any governmental, regulatory or supervisory body in
or of the Russian Federation; or

	 	(g)	 	the initiation of any voluntary or involuntary case or other similar
proceeding against or in respect of it causing any other similar condition or event
contemplated by paragraphs (a) to (f) hereof.

"Russian Insolvency Test” means, in respect of an entity incorporated under the laws of the
Russian Federation, any of the following:

	 	(a)	 	it does not discharge the claims of any creditor related to monetary
obligations and/or make any mandatory payments (obyasatel’niye platezhi) within three
months after their due date, except where such claim, obligation or payment is
contested in good faith by appropriate proceedings and that this entity has adequate
reserves to face its liabilities, or is otherwise incapable of satisfying the claims of
any creditor related to monetary obligations and/or to make any mandatory payment;

	 	(b)	 	the settlement of claims of one or more creditors makes it impossible for it
to discharge its monetary obligations or to make mandatory payments (obyasatel’niye
platezhi) and/or other payments in full to its other creditors;

	 	(c)	 	its Board of Directors or shareholders or participants adopt a resolution to
file a petition with an arbitrazh court for its liquidation;

	 	(d)	 	the levying of execution of any judgment, award or order on its property will
materially impair or make impossible its ability to carry on its business activity; or

	 	(e)	 	it meets (but ignoring any requirement for a court determination to this
effect) any other criteria for the commencement of Russian Insolvency Proceedings
specified by the Bankruptcy Law or other applicable law or regulation (including
factual bankruptcy (fakticheskoye bankrotstvo) as that term is used in Article 195 of
the Criminal Code of the Russian Federation).

"Russian Obligor” means any Russian Borrower or Russian Guarantor.

"Screen Rate” means the British Bankers’ Association Interest Settlement Rate for the
offering of deposits in dollars for the relevant period and for the amount comparable to the
aggregate amount of the Loans then outstanding, displayed on the appropriate page of the
Telerate screen. If the agreed page is replaced or service ceases to be available, the Agent
may specify another page or service displaying the appropriate rate after consultation with
the Company and the Lenders.

"SEC” means the United States Securities and Exchange Commission or any successor thereto.

"Security” means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar effect.

"Sovintel” means limited liability company “EDN Sovintel”, organised and existing under the
laws of the Russian Federation with principal state registration number 1027739006690
and having its registered address at 1 Kozhevnicheskiy proezd, Moscow 115114 Russia. 

"Special Account Requirements” means the requirements (if any) established by or pursuant to
the Currency Law to use special accounts when conducting certain operations.

"Specified Time” means a time determined in accordance with Schedule 11 (Timetables).

"Subsidiary” means in relation to any company or corporation, a company or corporation:

	 	(a)	 	which is controlled, directly or indirectly, by the first mentioned company or
corporation;

	 	(b)	 	more than half the issued share capital of which is beneficially owned,
directly or indirectly by the first mentioned company or corporation; or

	 	(c)	 	which is a Subsidiary of another Subsidiary of the first mentioned company or
corporation,

and for this purpose, a company or corporation shall be treated as being controlled by
another if that other company or corporation is able to direct its affairs and/or to control
the composition of its board of directors or equivalent body.

"Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same).

"Tax Certificate” means, in respect of a Qualifying Lender, a document issued by the
relevant authority confirming that this Qualifying Lender is a resident in that jurisdiction
for the purpose of the relevant double taxation treaty, and apostilled in that jurisdiction.

"Tax Code” means Part I of the Tax Code of the Russian Federation, which came into force on
1 January 1999 and Part II of the Tax Code of the Russian Federation, which came into force
on 1 January 2002.

"Termination Date” means the date falling 60 Months after the date of this Agreement.

"Total Commitments” means the aggregate of the Total Facility A Commitments and the Total
Facility B Commitments being US$275,000,000 at the First Amendment Effective Date.

"Total Facility A Commitments” means the aggregate of the Facility A Commitments being
US$50,000,000 at the First Amendment Effective Date.

"Total Facility B Commitments” means the aggregate of the Facility B Commitments being,
subject to the increase provisions set out in Clause 2.2 (Increase of Total Facility B
Commitments), US$225,000,000 at the First Amendment Effective Date.

"Transaction Authorisations” means each of:

	 	(a)	 	the Loan Passport; and

	 	(b)	 	any other Authorisation required to enable any Obligor lawfully to enter into,
exercise its rights and comply with its obligations in the Finance Documents to which
it is a party,

and “Transaction Authorisation” means any of them.

"Transfer Certificate” means a certificate substantially in the form set out in Schedule 5
(Form of Transfer Certificate) or any other form agreed between the Agent and the Company.

"Transfer Date” means, in relation to a transfer, the later of:

	 	(a)	 	the proposed Transfer Date specified in the Transfer Certificate; and

	 	(b)	 	the date on which the Agent executes the Transfer Certificate.

"Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance
Documents.

"U.S.” and “United States” means the United States of America, its territories, possessions
and other areas subject to the jurisdiction of the United States of America.

"U.S. Borrower” means a Borrower whose jurisdiction of organisation is a state of the United
States of America or the District of Columbia.

"US GAAP” means generally accepted accounting principles in the United States in effect from
time to time, applied on a consistent basis both as to classification of items and amounts.

"U.S. Guarantor” means a Guarantor whose jurisdiction of organisation is a state of the
United States of America or the District of Columbia.

"U.S. Obligor” means any U.S. Borrower or U.S. Guarantor.

"U.S. Tax” means any federal, state, local income, gross receipts, license, premium,
windfall profits, customs duties, capital stock, franchise, profits, withholding, social
security (or similar), real property, personal property, sales, use, registration, value
added, alternative or add-on minimum, estimated or other tax of any kind whatsoever, imposed
by the United States, including any interest, penalty or addition thereto, whether disputed
or not.

"Utilisation” means a utilisation of a Facility.

"Utilisation Date” means the date of a Utilisation, being the date on which the relevant
Loan is to be made.

"Utilisation Request” means a notice substantially in the form set out in Schedule 3
(Requests).

"VAT” means (i) value added tax as provided for in the Tax Code, in relation to any Russian
VAT and (ii) any other tax of a similar nature in any applicable jurisdiction.

"ZAO Citibank” means Citibank ZAO, a Closed Joint Stock Company registered under number
1027700431296, whose registered office is at 8-10 Gasheka st, 125047 Moscow, Russia.

"ZAO Cortec” means ZAO Cortec, a closed joint stock company, organised and existing under
the laws of the Russian Federation with principal state registration number 1027739922430,
having its registered address at 30/15 Ryazanskiy Prospect, 109428 Moscow, Russia.

	1.2	 	Construction

	 	(a)	 	Unless a contrary indication appears any reference in this Agreement to:

	 	(i)	 	the “Agent”, the “Arranger”, any “Finance Party”, any “Lender”, any
“Obligor” or any “Party” shall be construed so as to include its successors in
title, permitted assigns and permitted transferees;

	 	(ii)	 	"assets” includes present and future properties, revenues and rights
of every description;

	 	(iii)	 	a “Finance Document” or any other agreement or instrument is a
reference to that Finance Document or other agreement or instrument as
amended, novated, supplemented, extended, replaced or restated;

	 	(iv)	 	"indebtedness” includes any obligation (whether incurred as principal
or as surety) for the payment or repayment of money, whether present or
future, actual or contingent;

	 	(v)	 	a “person” includes any person, firm, company, corporation,
government, state or agency of a state or any association, trust or
partnership (whether or not having separate legal personality) of two or more
of the foregoing;

	 	(vi)	 	a “regulation” includes any regulation, rule, official directive and,
in relation to the Lenders, any of the foregoing and any request or guideline
(whether or not having the force of law but, if not having the force of law,
being of a type which banks generally in the relevant jurisdiction are
accustomed, expected or required to comply with) of any governmental,
intergovernmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation;

	 	(vii)	 	a provision of law is a reference to that provision as amended or
re-enacted; and

	 	(viii)	 	a time of day is a reference to London time.

	 	(b)	 	Section, Clause and Schedule headings are for ease of reference only.

	 	(c)	 	Unless a contrary indication appears, a term used in any other Finance Document
or in any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement.

	 	(d)	 	A Default (other than an Event of Default) is “continuing” if it has not been
remedied or waived and an Event of Default is “continuing” if it has not been waived.

	 	 	 
	1.3	 	Currency Symbols and Definitions
	1.4

	 	"$” and “dollars” denote lawful currency of the United States of America.

Third party rights

	 	(a)	 	Unless expressly provided to the contrary in a Finance Document, a person who
is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the
“Third Parties Act”) to enforce or to enjoy the benefit of any term of this Agreement.

	 	(b)	 	Notwithstanding any term of any Finance Document, the consent of any person who
is not a Party is not required to rescind or vary this Agreement at any time.

2

SECTION 2

THE FACILITIES

	2.	 	THE FACILITIES

	2.1	 	The Facilities

Subject to the terms of this Agreement, the Lenders make available to:

	 	(a)	 	the Facility A Borrowers, a dollar term loan facility in an aggregate amount
equal to the Total Facility A Commitments; and

	 	(b)	 	the Borrowers, a dollar term loan facility in an aggregate amount equal to the
Total Facility B Commitments.

	2.2	 	Increase of Total Facility B Commitments

Each Facility A Borrower shall repay all Facility A Loans made to it, in full, on the
Facility A Repayment Date. Subject to such repayment, the Total Facility B Commitments
shall, on the day immediately succeeding the Facility A Repayment Date, be increased by an
amount equal to the Total Facility A Commitments, and each Lender’s Facility B Commitment
shall be increased by an amount equal to its Facility A Commitment at such time.

	2.3	 	Finance Parties’ rights and obligations

	 	(a)	 	The obligations of each Finance Party under the Finance Documents are several.
Failure by a Finance Party to perform its obligations under the Finance Documents does
not affect the obligations of any other Party under the Finance Documents. No Finance
Party is responsible for the obligations of any other Finance Party under the Finance
Documents.

	 	(b)	 	The rights of each Finance Party under or in connection with the Finance
Documents are separate and independent rights and any debt arising under the Finance
Documents to a Finance Party from an Obligor shall be a separate and independent debt.

	 	(c)	 	A Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

	3.	 	PURPOSE

	3.1	 	Purpose

Each Borrower shall apply all amounts borrowed by it under any Facility towards its
general corporate purposes including acquisitions, the payment of dividends and capital
expenditures.

	3.2	 	Monitoring

No Finance Party is bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.

	4.	 	CONDITIONS OF UTILISATION

	4.1	 	Initial conditions precedent

No Borrower may deliver a Utilisation Request unless the Agent has received all of the
documents and other evidence listed in Part I of Schedule 2 (Conditions precedent) in form
and substance satisfactory to the Agent. The Agent shall notify the Company and the Lenders
promptly upon being so satisfied.

	4.2	 	Further conditions precedent

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if
on the date of the Utilisation Request and on the proposed Utilisation Date:

	 	(a)	 	no Default is continuing or would result from the proposed Loan; and

	 	(b)	 	the Repeating Representations to be made by each Obligor are true in all
material respects; and

	 	(c)	 	in the case of a proposed Utilisation by the Russian Obligor:

	 	(i)	 	the Loan Passport has been opened and is being maintained within the
Account Bank; and

	 	(ii)	 	the Account Bank has confirmed to the Agent that the Russian Obligor
has given instructions satisfactory to the Account Bank, or has otherwise made
appropriate arrangements, for compliance with any Special Account Requirements
relating to each Utilisation.

	4.3	 	Maximum number of Loans

A Borrower may not deliver a Utilisation Request if as a result of the proposed
Utilisation:

	 	(a)	 	two or more Facility A Loans would be outstanding; and

	 	(b)	 	eleven or more Facility B Loans would be outstanding.

3

SECTION 3

UTILISATION

	5.	 	UTILISATION

	5.1	 	Delivery of a Utilisation Request

A Borrower may utilise a Facility by delivery to the Agent of a duly completed
Utilisation Request not later than the Specified Time.

	5.2	 	Completion of a Utilisation Request

	 	(a)	 	Each Utilisation Request is irrevocable and will not be regarded as having been
duly completed unless:

	 	(i)	 	it identifies the Facility to be utilised;

	 	(ii)	 	the proposed Utilisation Date is a Business Day within the
Availability Period applicable to that Facility ;

	 	(iii)	 	the currency and amount of the Utilisation comply with Clause 5.3
(Currency and amount);

	 	(iv)	 	the proposed Interest Period complies with Clause 9 (Interest
Periods); and

	 	(v)	 	in the case of the Russian Obligor the account to which the proceeds
of the Utilisation are to be credited is held with the Account Bank.

	 	(b)	 	Only one Loan may be requested in each Utilisation Request.

	5.3	 	Currency and amount

	 	(a)	 	The currency specified in a Utilisation Request must be dollars.

	 	(b)	 	The amount of the proposed Loan must be an amount which is not more than the
relevant Available Facility and which is a minimum of US$10,000,000 (ten million
dollars) and an integral multiple of US$5,000,000 (five million dollars) or if less,
the Available Facility.

	5.4	 	Lenders’ participation

	 	(a)	 	If the conditions set out in this Agreement have been met, each Lender shall
make its participation in each Loan available by the Utilisation Date through its
Facility Office.

	 	(b)	 	The amount of each Lender’s participation in each Loan will be equal to the
proportion borne by its relevant Available Commitment to the relevant Available
Facility immediately prior to making the Loan.

	 	(c)	 	The Agent shall notify each Lender of the amount of each Loan and the amount of
its participation in that Loan, in each case by the Specified Time.

4

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

	6.	 	REPAYMENT

	6.1	 	Repayment of Facility A Loans

Each Facility A Borrower shall repay the aggregate Facility A Loans made to it in full
on the Facility A Repayment Date.

	6.2	 	Repayment of Facility B Loans

	 	(a)	 	Each Borrower shall repay the Facility B Loans made to it in instalments by
repaying on each Facility B Repayment Date an amount which reduces the amount of the
outstanding Facility B Loans by an amount equal to the relevant percentage of all the
Facility B Loans borrowed by the Borrowers as at the close of business in London on the
last day of the Availability Period for Facility B as set out in the table below:

	 	 	 	 	 
	Facility B Repayment Date	 	Repayment Percentage
	 
	 	 	 	 
	The date falling the specified number of Months
after the date of this Agreement:
	 	 	 	 
	24 Months
	 	 	7.69	 
	27 Months
	 	 	7.69	 
	30 Months
	 	 	7.69	 
	33 Months
	 	 	7.69	 
	36 Months
	 	 	7.69	 
	39 Months
	 	 	7.69	 
	42 Months
	 	 	7.69	 
	45 Months
	 	 	7.69	 
	48 Months
	 	 	7.69	 
	51 Months
	 	 	7.69	 
	54 Months
	 	 	7.69	 
	57 Months
	 	 	7.69	 
	60 Months
	 	 	7.72	 

	 	(b)	 	If, in relation to a Facility B Repayment Date, the aggregate amount of the
Facility B Loans made to the Borrowers exceeds the Facility B Repayment Instalment to
be repaid by the Borrowers, the Company may, if it gives the Agent not less than five
Business Days’ prior notice, select which of those Facility B Loans will be wholly or
partially repaid so that the Facility B Repayment Instalment is repaid on the relevant
Facility B Repayment Date in full. The Company may not make a selection if as a result
more than one Facility B Loan will be partially repaid.

	 	(c)	 	If the Company fails to deliver a notice to the Agent in accordance with
paragraph (b) above, the Agent shall select the Facility B Loans to be wholly or
partially repaid.

	6.3	 	Reborrowing

No Borrower may reborrow any part of the Facility which is repaid except as provided in
Clause 2.2 (Increase of Total Facility B Commitments).

	7.	 	PREPAYMENT AND CANCELLATION

	7.1	 	Illegality

If, at any time, it is or will become unlawful in any applicable jurisdiction for a
Lender to perform any of its obligations as contemplated by this Agreement or to fund or
maintain its participation in any Loan:

	 	(a)	 	that Lender shall promptly notify the Agent upon becoming aware of that event;

	 	(b)	 	upon the Agent notifying the Company, the Commitment of that Lender will be
immediately cancelled; and

	 	(c)	 	each Borrower shall repay that Lender’s participation in the Loans made to that
Borrower on the last day of the Interest Period for each Loan occurring after the Agent
has notified the Company or, if earlier, the date specified by the Lender in the notice
delivered to the Agent (being no earlier than the last day of any applicable grace
period permitted by law).

	7.2	 	Change of control

	 	(a)	 	If any person or group of persons acting in concert (other than a Designated
Person) gains control of the Company:

	 	(i)	 	the Company shall promptly notify the Agent upon becoming aware of
that event;

	 	(ii)	 	a Lender shall not be obliged to fund a Utilisation;

	 	(iii)	 	if a Lender so requires and notifies the Agent within sixty days of
the Company notifying the Agent of the event, the Agent shall, by not less
than five days notice to the Company, cancel the Commitment of that Lender and
declare the participation of that Lender in all outstanding Loans, together
with accrued interest and all other amounts accrued under the Finance
Documents immediately due and payable, whereupon the Commitment of that Lender
will be cancelled and all such outstanding amounts will become immediately due
and payable.

	 	(b)	 	For the purpose of paragraph (a) above “control” means:

	 	(i)	 	the power (whether by way of ownership of shares, proxy, contract,
agency or otherwise) to:

	 	(A)	 	cast, or control the casting of, more than one-half of the
maximum number of votes that might be cast at a general meeting of the
Company; or

	 	(B)	 	appoint or remove all, or the majority, of the directors or
other equivalent officers of the Company; or

	 	(C)	 	give directions with respect to the operating and financial
policies of the Company which the directors or other equivalent officers
of the Company are obliged to comply with; or

	 	(ii)	 	the holding (whether directly or indirectly) of more than one-half of
the issued share capital of the Company (excluding any part of that issued
share capital that carries no right to participate beyond a specified amount
in a distribution of either profits or capital).

	 	(c)	 	For the purpose of paragraph (a) above “acting in concert” means, a group of
persons who, pursuant to an agreement or understanding (whether formal or informal),
actively co-operate, through the acquisition by any of them, either directly or
indirectly, of shares in the Company, to obtain or consolidate control of the Company.

	7.3	 	Voluntary cancellation

The Company may, if it gives the Agent not less than ten Business Days (or such shorter
period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being
a minimum amount of US$10,000,000 (ten million dollars) and an integral multiple of
US$5,000,000 (five million dollars)) of an Available Facility. Any cancellation under this
Clause 7.3 in respect of either Facility shall reduce the Commitments of the Lenders
rateably under that Facility.

	7.4	 	Automatic cancellation

At the close of business on the last day of the Availability Period of each Facility,
the Available Commitment of each Lender in respect of that Facility shall be (if it has not
already been) immediately cancelled and reduced to zero.

	7.5	 	Voluntary prepayment of Loans

	 	(a)	 	A Borrower to which a Loan has been made may, if it gives the Agent not less
than ten Business Days’ (or such shorter period as the Majority Lenders may agree)
prior notice, prepay on the last day of the Interest Period relating thereto, the whole
or any part of any Loan (but, if in part, being an amount that reduces the amount of
the Loan by a minimum amount of US$10,000,000 (ten million dollars) and an integral
multiple of US$5,000,000 (five million dollars)).

	 	(b)	 	Any prepayment under this Clause 7.5 shall satisfy the obligations under Clause
6.2 (Repayment of Facility B Loans) in inverse chronological order.

	7.6	 	Right of repayment and cancellation in relation to a single Lender

	 	(a)	 	If:

	 	(i)	 	any sum payable to any Lender by an Obligor is required to be
increased under paragraph (c) of Clause 12.2 (Tax gross-up); or

	 	(ii)	 	any Lender claims indemnification from the Company under Clause 12.3
(Tax indemnity) or Clause 13.1 (Increased costs); or

	 	(iii)	 	any Lender notifies the Agent of its Additional Cost Rate under
paragraph 3 of Schedule 4 (Mandatory Cost formulae),

the Company may, whilst (in the case of paragraphs (i) and (ii) above) the
circumstance giving rise to the requirement or indemnification continues or (in the
case of paragraph (iii) above) that Additional Cost Rate is greater than zero, give
the Agent notice of cancellation of the Commitment of that Lender and its intention
to procure the repayment of that Lender’s participation in the Loans.

	 	(b)	 	On receipt of a notice of cancellation referred to in paragraph (a) above, the
Commitment of that Lender shall immediately be reduced to zero.

	 	(c)	 	On the last day of each Interest Period which ends after the Company has given
notice of cancellation under paragraph (a) above (or, if earlier, the date specified by
the Company in that notice), each Borrower to which a Loan is outstanding shall repay
that Lender’s participation in that Loan.

	7.7	 	Restrictions

	 	(a)	 	Any notice of cancellation or prepayment given by any Party under this Clause 7
shall be irrevocable and, unless a contrary indication appears in this Agreement, shall
specify the date or dates upon which the relevant cancellation or prepayment is to be
made and the amount of that cancellation or prepayment.

	 	(b)	 	Any prepayment under this Agreement and, for the avoidance of doubt, any
repayment under this Clause 7 (Prepayment and Cancellation), shall be made together
with accrued interest on the amount prepaid and, subject to any Break Costs, without
premium or penalty.

	 	(c)	 	Each Russian Obligor shall:

	 	(i)	 	in the case of a voluntary prepayment under Clause 7.5 (Voluntary
prepayment of Loans), together with the notice of prepayment; and

	 	(ii)	 	in the case of any other prepayment under this Clause 7 (Prepayment
and Cancellation), no later than at the time of prepayment,

deliver to the Agent satisfactory evidence that the Russian Obligor has provided to
the Account Bank all necessary documents required for registering such prepayment
under the Loan Passport, and has complied with any Special Account Requirements
relating to such prepayment.

	 	(d)	 	No Borrower may reborrow any part of the Facility which is prepaid except as
provided in Clause 2.2 (Increase of Total Facility B Commitments).

	 	(e)	 	The Borrowers shall not repay or prepay all or any part of the Loans or cancel
all or any part of the Commitments except at the times and in the manner expressly
provided for in this Agreement.

	 	(f)	 	No amount of the Total Commitments cancelled under this Agreement may be
subsequently reinstated.

	 	(g)	 	If the Agent receives a notice under this Clause 7 it shall promptly forward a
copy of that notice to either the Company or the affected Lender, as appropriate.

5

SECTION 5

COSTS OF UTILISATION

	8.	 	INTEREST

	8.1	 	Calculation of interest

The rate of interest on each Loan for each Interest Period is the percentage rate per
annum which is the aggregate of the applicable:

	 	(a)	 	Margin;

	 	(b)	 	LIBOR; and

	 	(c)	 	Mandatory Cost, if any.

	8.2	 	Payment of interest

The Borrower to which a Loan has been made shall pay accrued interest on that Loan on
the last day of each Interest Period (and, if the Interest Period is longer than six Months,
on the dates falling at six Monthly intervals after the first day of the Interest Period).

	8.3	 	Default interest

	 	(a)	 	If an Obligor fails to pay any amount payable by it under a Finance Document on
its due date, interest shall accrue on the overdue amount from the due date up to the
date of actual payment (both before and after judgment) at a rate which, subject to
paragraph (b) below, is two per cent higher than the rate which would have been payable
if the overdue amount had, during the period of non-payment, constituted a Loan in the
currency of the overdue amount for successive Interest Periods, each of a duration
selected by the Agent (acting reasonably). Any interest accruing under this Clause 8.3
shall be promptly payable by the Obligor on demand by the Agent.

	 	(b)	 	If any overdue amount consists of all or part of a Loan which became due on a
day which was not the last day of an Interest Period relating to that Loan:

	 	(i)	 	the first Interest Period for that overdue amount shall have a
duration equal to the unexpired portion of the current Interest Period
relating to that Loan; and

	 	(ii)	 	the rate of interest applying to the overdue amount during that first
Interest Period shall be two per cent higher than the rate which would have
applied if the overdue amount had not become due.

	 	(c)	 	Default interest (if unpaid) arising on an overdue amount will be compounded
with the overdue amount at the end of each Interest Period applicable to that overdue
amount but will remain promptly due and payable.

	8.4	 	Notification of rates of interest

The Agent shall promptly notify the Lenders and the relevant Borrower of the
determination of a rate of interest under this Agreement.

	9.	 	INTEREST PERIODS

	9.1	 	Interest Periods

	 	(a)	 	The first two Interest Periods for each Facility A Loan will have a duration of
one month each. Thereafter each Facility A Loan will have an Interest Period of two
weeks.

	 	(b)	 	Each Facility B Loan will have an Interest Period of three Months or any other
period agreed between the Company and the Agent (acting on the instructions of all the
Lenders). Following the last day of the Availability Period applicable to Facility B,
each Borrower shall select an Interest Period of less than three Months, if necessary,
to ensure that all Facility B Loans have an Interest Period ending on the first
Facility B Repayment Date which falls after the date of such selection.

	 	(c)	 	The Interest Period for a Facility A Loan shall not extend beyond the Facility
A Repayment Date, and the Interest Period for a Facility B Loan shall not extend beyond
the Termination Date.

	 	(d)	 	Each Interest Period for a Loan shall start on the Utilisation Date or (if
already made) on the last day of its preceding Interest Period.

	9.2	 	Changes to Interest Periods

	 	(a)	 	Prior to determining the interest rate for a Facility B Loan, the Agent (acting
in consultation with the Company) may shorten an Interest Period for any Facility B
Loan to ensure there are sufficient Loans (with an aggregate amount equal to or greater
than the Facility B Repayment Instalment) which have an Interest Period ending on a
Facility B Repayment Date for the Borrowers to make the Facility B Repayment Instalment
due on that date.

	 	(b)	 	If the Agent makes any change to an Interest Period referred to in this
Clause 9.2, it shall promptly notify the Company and the Lenders.

	9.3	 	Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month (if there
is one) or the preceding Business Day (if there is not).

	9.4	 	Consolidation of Loans

If two or more Interest Periods:

	 	(a)	 	end on the same date;

	 	(b)	 	are made to the same Borrower; and

	 	(c)	 	relate to the same Facility,

those Loans will be consolidated into, and treated as, a single Loan on the last day of the
Interest Period.

	10.	 	CHANGES TO THE CALCULATION OF INTEREST

	10.1	 	Absence of quotations

Subject to Clause 10.2 (Market disruption), if LIBOR is to be determined by reference
to the Reference Banks but a Reference Bank does not supply a quotation by the Specified
Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the
quotations of the remaining Reference Banks.

	10.2	 	Market disruption

	 	(a)	 	If a Market Disruption Event occurs in relation to a Loan for any Interest
Period, then the rate of interest on each Lender’s share of that Loan for the Interest
Period shall be the percentage rate per annum which is the sum of:

	 	(i)	 	the Margin;

	 	(ii)	 	the rate notified to the Agent by that Lender as soon as practicable
and in any event before interest is due to be paid in respect of that Interest
Period, to be that which expresses as a percentage rate per annum the cost to
that Lender of funding its participation in that Loan from whatever source it
may reasonably select; and

	 	(iii)	 	the Mandatory Cost, if any, applicable to that Lender’s
participation in the Loan.

	 	(b)	 	In this Agreement “Market Disruption Event” means:

	 	(i)	 	at or about noon on the Quotation Day for the relevant Interest Period
the Screen Rate is not available and none or only one of the Reference Banks
supplies a rate to the Agent to determine LIBOR for dollars and the relevant
Interest Period; or

	 	(ii)	 	before close of business in London on the Quotation Day for the
relevant Interest Period, the Agent receives notifications from a Lender or
Lenders (whose participations in a Loan exceed 50 per cent of that Loan) that
the cost to it of obtaining matching deposits in the Relevant Interbank Market
would be in excess of LIBOR.

	10.3	 	Alternative basis of interest or funding

	 	(a)	 	If a Market Disruption Event occurs and the Agent or the Company so requires,
the Agent and the Company shall enter into negotiations (for a period of not more than
thirty days) with a view to agreeing a substitute basis for determining the rate of
interest.

	 	(b)	 	Any alternative basis agreed pursuant to paragraph (a) above shall, with the
prior consent of all the Lenders and the Company, be binding on all Parties.

	10.4	 	Break Costs

Each Borrower shall, within five Business Days of demand by a Finance Party accompanied
with a certificate confirming the amount of its Break Costs (giving the calculations thereof
in reasonable detail) for any Interest Period in which they accrue, pay to that Finance
Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by
that Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid
Sum. This provision shall not apply to any payment made by a Borrower in accordance with
the provisions of Clause 7.1 (Illegality) or paragraph (a)(ii) of Clause 7.6 (Right of
repayment and cancellation in relation to a single Lender).

	11.	 	FEES

	11.1	 	Commitment fee

	 	(a)	 	Subject to paragraph (b) below, the Company shall pay to the Agent (for the
account of each Lender) a fee in dollars computed at the rate of 0.675 per cent. per
annum on (i) that Lender’s Available Commitment in respect of Facility A for the
Availability Period applicable to Facility A and (ii) that Lender’s Available
Commitment in respect of Facility B for the Availability Period applicable to Facility
B.

	 	(b)	 	From and including the date of this Agreement until the date falling 12 Months
after the date of this Agreement, the fee payable by the Company pursuant to paragraph
(a) above shall be reduced to 0.50 per cent. per annum if and for so long as the
aggregate amount of the Available Commitments in respect of Facility A and Facility B
is less than 50 per cent. of the Total Commitment.

	 	(c)	 	The accrued commitment fee is payable on the last day of each successive period
of three Months which ends during the relevant Availability Period, on the last day of
the relevant Availability Period and, if cancelled in full, on the cancelled amount of
the relevant Lender’s Commitment at the time the cancellation is effective.

	11.2	 	Arrangement fee

The Obligors shall pay to the Arranger an arrangement fee in the amount and at the
times agreed in a Fee Letter.

	11.3	 	Agency fee

The Obligors shall pay to the Agent (for its own account) an agency fee in the amount
and at the times agreed in a Fee Letter.

6

SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

	12.	 	TAX GROSS UP AND INDEMNITIES

	12.1	 	Definitions

	 	(a)	 	In this Agreement:

"Protected Party” means a Finance Party which is or will be subject to any
liability, or required to make any payment, for or on account of Tax in relation to
a sum received or receivable (or any sum deemed for the purposes of Tax to be
received or receivable) under a Finance Document.

"Qualifying Lender” means a Lender which is beneficially entitled to interest
payable to that Lender in respect of a Loan and is:

	 	(i)	 	with respect to a payment made by a U.S. Obligor or otherwise treated
under the Code as United States source interest, a Lender which is:

	 	(A)	 	a “United States person” within the meaning of Section
7701(a)(30) of the Code, provided such Lender timely has delivered to
the Agent for transmission to the Obligor making such payment two
original copies of IRS Form W-9 (or any successor form) either directly
or under cover of IRS Form W-8IMY (or any successor form) certifying its
status as a “United States person”; or

	 	(B)	 	a Treaty Lender with respect to the United States of America,
provided such Lender timely has delivered to the Agent for transmission
to the Obligor making such payment two original copies of IRS Form
W-8BEN (or any successor form) either directly or under cover of IRS
Form W-8IMY (or any successor form) certifying its entitlement to
receive such payments without any such deduction or withholding under a
double taxation treaty; or

	 	(C)	 	entitled to receive payments under the Finance Documents without
deduction or withholding of any United States federal income Taxes
either as a result of such payments being effectively connected with the
conduct by such Lender of a trade or business within the United States
or under the portfolio interest exemption, provided such Lender timely
has delivered to the Agent for transmission to the Obligor making such
payment two original copies of either (1) IRS Form W-8ECI (or any
successor form) either directly or under cover of IRS Form W-8IMY (or
any successor form) certifying that the payments made pursuant to the
Finance Documents are effectively connected with the conduct by that
Lender of a trade or business within the United States or (2) IRS Form
W-8BEN (or any successor form) either directly or under cover of IRS
Form W-8IMY (or any successor form) claiming exemption from withholding
in respect of payments made pursuant to the Finance Documents under the
portfolio interest exemption and a statement certifying that such Lender
is not a person described in Section 871(h)(3)(B) or Section 881(c)(3)
of the Code or (3) such other applicable form prescribed by the IRS
certifying as to such Lender’s entitlement to exemption from United
States withholding tax with respect to all payments to be made to such
Lender under the Finance Documents.

For purposes of this paragraph (i), in the case of a Lender that is not
treated as the beneficial owner of the payment (or a portion thereof) under
Chapter 3 and related provisions (including Sections 871, 881, 3406, 6041,
6045 and 6049) of the Code, the term “Lender” shall mean the person who is so
treated as the beneficial owner of the payment (or portion thereof); or

	 	(ii)	 	with respect to a payment made by a Russian Obligor,

	 	(A)	 	a company resident in the Russian Federation for Russian
Federation tax purposes; or

	 	(B)	 	a partnership each member of which is a company resident in the
Russian Federation for Russian Federation tax purposes; or

	 	(C)	 	a company not so resident in the Russian Federation which
carries on a trade in the Russian Federation through a branch or agency
or any other subdivision and for which interest payable in respect of
that Loan must be taken into account in computing its chargeable profits
in the Russian Federation (within the meaning given by Article 307 of
the Tax Code); or

	 	(D)	 	a Treaty Lender with respect to the Russian Federation.

"Tax Credit” means a credit against, relief or remission for, or repayment of any
Tax.

"Tax Deduction” means a deduction or withholding for or on account of Tax from a
payment under a Finance Document.

"Tax Payment” means either the increase in a payment made by an Obligor to a
Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax
indemnity).

"Treaty Lender” means a Lender which:

	 	(i)	 	is treated as a resident of a Treaty State for the purposes of the
Treaty; and

	 	(ii)	 	does not carry on a business in the jurisdiction of incorporation of
the respective Borrower trough a permanent establishment with which that
Lender’s participation in the Loan is effectively connected.

"Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”)
with the jurisdiction of incorporation of the relevant Borrower which makes
provision for full exemption from tax imposed by the jurisdiction of incorporation
of the relevant Borrower on interest (subject to the completion of any necessary
procedural formalities)

	 	(b)	 	Unless a contrary indication appears, in this Clause 12 a reference to
“determines” or “determined” means a determination made in the absolute discretion of
the person making the determination.

	12.2	 	Tax gross-up

	 	(a)	 	Each Obligor shall make all payments to be made by it without any Tax
Deduction, unless a Tax Deduction is required by law.

	 	(b)	 	The Company shall promptly upon becoming aware that an Obligor must make a Tax
Deduction (or that there is any change in the rate or the basis of a Tax Deduction)
notify the Agent accordingly. Similarly, a Lender shall notify the Agent on becoming
so aware in respect of a payment payable to that Lender. If the Agent receives such
notification from a Lender it shall notify the Company and that Obligor.

	 	(c)	 	If a Tax Deduction is required by law to be made by an Obligor, the amount of
the payment due from that Obligor shall be increased to an amount which (after making
any Tax Deduction) leaves an amount equal to the payment which would have been due if
no Tax Deduction had been required.

	 	(d)	 	An Obligor is not required to make an increased payment to a Lender under
paragraph (c) above for a Tax Deduction in respect of tax imposed by the Russian
Federation or in respect of U.S. Tax from a payment of interest on a Loan, if on the
date on which the payment falls due:

	 	(i)	 	the payment could have been made to the relevant Lender without a Tax
Deduction if it was a Qualifying Lender, but on that date that Lender is not
or has ceased to be a Qualifying Lender other than as a result of any change
after the date it became a Lender under this Agreement in (or in the
interpretation, administration, or application of) any law or Treaty, or any
published practice or concession of any relevant taxing authority; or

	 	(ii)	 	the relevant Lender is a Treaty Lender and the Obligor making the
payment is able to demonstrate that the payment could have been made to the
Lender without the Tax Deduction had that Lender complied with its obligations
under paragraph (g) below.

	 	(e)	 	If an Obligor is required to make a Tax Deduction, that Obligor shall make that
Tax Deduction and any payment required in connection with that Tax Deduction within the
time allowed and in the minimum amount required by law.

	 	(f)	 	Within thirty days of making either a Tax Deduction or any payment required in
connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver
to the Agent for the Finance Party entitled to the payment evidence reasonably
satisfactory to that Finance Party that the Tax Deduction has been made or (as
applicable) any appropriate payment paid to the relevant taxing authority.

	 	(g)	 	A Treaty Lender and each Obligor which makes a payment to which that Treaty
Lender is entitled shall co-operate in completing any procedural formalities necessary
for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

	12.3	 	Tax indemnity

	 	(a)	 	The Company shall (within five Business Days of demand by the Agent) pay to a
Protected Party an amount equal to the loss, liability or cost which that Protected
Party has (directly or indirectly) suffered or will (directly or indirectly) suffer for
or on account of Tax by that Protected Party in respect of a Finance Document or the
transactions occurring under such Finance Document.

	 	(b)	 	Paragraph (a) above shall not apply:

	 	(i)	 	with respect to any Tax assessed on a Finance Party:

	 	(A)	 	under the law of the jurisdiction in which that Finance Party is
incorporated or, if different, the jurisdiction (or jurisdictions) in
which that Finance Party is treated as resident for tax purposes; or

	 	(B)	 	under the law of the jurisdiction in which that Finance Party’s
Facility Office is located in respect of amounts received or receivable
in that jurisdiction,

if that Tax is imposed on or calculated by reference to the net income
received or receivable (but not any sum deemed to be received or receivable)
by that Finance Party; or

	 	(ii)	 	to the extent a loss, liability or cost is compensated for by an
increased payment under Clause 12.2 (Tax gross-up).

	 	(iii)	 	A Protected Party making, or intending to make a claim under
paragraph (a) above shall promptly notify the Agent of the event which will
give, or has given, rise to the claim, following which the Agent shall notify
the Company.

	 	(c)	 	A Protected Party shall, on receiving a payment from an Obligor under this
Clause 12.3, notify the Agent.

	12.4	 	Tax Credit

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

	 	(a)	 	a Tax Credit is attributable either to an increased payment of which that Tax
Payment forms part, or to that Tax Payment; and

	 	(b)	 	that Finance Party has obtained, utilised and retained that Tax Credit,

the Finance Party shall pay an amount to the Obligor which that Finance Party determines
(providing reasonable evidence of how that determination is reached) will leave it (after
that payment) in the same after-Tax position as it would have been in had the Tax Payment
not been required to be made by the Obligor.

	12.5	 	Stamp taxes

The Company shall pay and, within five Business Days of demand, indemnify each Finance
Party against any cost and direct loss or liability that Finance Party incurs in relation to
all stamp duty, registration, excise and other similar Taxes payable in respect of any
Finance Document or the transactions occurring under any of them.

	12.6	 	Value added tax

	 	(a)	 	All amounts set out, or expressed to be payable under a Finance Document by any
Party to a Finance Party which (in whole or in part) constitute the consideration for
VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such
supply , and accordingly, subject to paragraph (c) below, if VAT is chargeable on any
supply made by any Finance Party to any Party under a Finance Document, that Party
shall pay to the Finance Party (in addition to and at the same time as paying the
consideration) an amount equal to the amount of the VAT (and such Finance Party shall
promptly provide an appropriate VAT invoice to such Party).

	 	(b)	 	If VAT is chargeable on any supply made by any Finance Party (the “Supplier”)
to any other Finance Party (the “Recipient”) under a Finance Document, and any Party
(the “Relevant Party”) is required by the terms of any Finance Document to pay an
amount equal to the consideration for such supply to the Supplier (rather than being
required to reimburse the recipient in respect of that consideration), such Party shall
also pay to the Supplier (in addition to and at the same time as paying such amount) an
amount equal to the amount of such VAT. The Recipient will promptly pay to the
Relevant Party an amount equal to any credit or repayment from the relevant tax
authority which it reasonably determines relates to the VAT chargeable on that supply.

	 	(c)	 	Where a Finance Document requires any Party to reimburse a Finance Party for
any costs or expenses, that Party shall also at the same time pay and indemnify the
Finance Party against all VAT incurred by the Finance Party in respect of the costs or
expenses to the extent that the Finance Party reasonably determines that neither it nor
any other member of any group of which it is a member for VAT purposes is entitled to
credit or repayment from the relevant tax authority in respect of the VAT.

	12.7	 	Tax Certificate

Each Borrower may request (if necessary), in writing to the Agent, a Tax Certificate
from a Finance Party and such Finance Party will provide a Tax Certificate from the relevant
tax authorities to the extent such Tax Certificate is produced by such authorities. To the
extent the Agent receives Tax Certificates from Finance Parties, upon receipt of the same it
will provide such Tax Certificates to the relevant Borrower. All costs associated with the
production of the Tax Certificates shall be borne by that Borrower and it shall, immediately
on demand, reimburse the Agent (for the account of the Finance Parties) for all such costs.

	12.8	 	Survival of obligations

Without prejudice to the survival of any other section of this Agreement, the
agreements and obligations of each Obligor and each Finance Party contained in this Clause
12 shall survive the payment in full by the Obligors of all obligations under this Agreement
and the termination of this Agreement until such time that such Finance Party would no
longer be subject to any tax claim (except if such tax claim is due to the negligence of the
relevant Finance Party) by any tax authority in respect of any payment received by the
Finance Parties under this Agreement.

	13.	 	INCREASED COSTS

	13.1	 	Increased costs

	 	(a)	 	Subject to Clause 13.3 (Exceptions) the Company shall, within five Business
Days of a demand by the Agent, pay for the account of a Finance Party the amount of any
Increased Costs incurred by that Finance Party or any of its Affiliates as a result of
(i) the introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation or (ii) compliance with any law or regulation
made after the date of this Agreement.

	 	(b)	 	In this Agreement “Increased Costs” means:

	 	(i)	 	a reduction in the rate of return from a Facility or on a Finance
Party’s (or its Affiliate’s) overall capital;

	 	(ii)	 	an additional or increased cost; or

	 	(iii)	 	a reduction of any amount due and payable under any Finance
Document,

which is incurred or suffered by a Finance Party or any of its Affiliates to the
extent that it is attributable to that Finance Party having entered into its
Commitment or funding or performing its obligations under any Finance Document.

	13.2	 	Increased cost claims

	 	(a)	 	A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased
costs) shall notify the Agent of the event giving rise to the claim, following which
the Agent shall promptly notify the Company.

	 	(b)	 	Each Finance Party shall, as soon as practicable after a demand by the Agent,
provide a certificate confirming the amount of its Increased Costs and including the
details of computation of such Increased Costs.

	13.3	 	Exceptions

	 	(a)	 	Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost
is:

	 	(i)	 	attributable to a Tax Deduction required by law to be made by an
Obligor;

	 	(ii)	 	compensated for by Clause 12.3 (Tax indemnity) (or would have been
compensated for under Clause 12.3 (Tax indemnity) but was not so compensated
solely because any of the exclusions in paragraph (b) of Clause 12.3 (Tax
indemnity) applied);

	 	(iii)	 	compensated for by the payment of the Mandatory Cost; or

	 	(iv)	 	attributable to the wilful breach by the relevant Finance Party or
its Affiliates of any law or regulation.

	 	(b)	 	In this Clause 13.3, a reference to a “Tax Deduction” has the same meaning
given to the term in Clause 12.1 (Definitions).

	14.	 	OTHER INDEMNITIES

	14.1	 	Currency indemnity

	 	(a)	 	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any
order, judgment or award given or made in relation to a Sum, has to be converted from
the currency (the “First Currency”) in which that Sum is payable into another currency
(the “Second Currency”) for the purpose of:

	 	(i)	 	making or filing a claim or proof against that Obligor;

	 	(ii)	 	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,

that Obligor shall as an independent obligation, within five Business Days of
demand, indemnify each Finance Party to whom that Sum is due against any cost,
direct loss or liability arising out of or as a result of the conversion (done
acting in good faith) including any discrepancy between (A) the rate of exchange
used to convert that Sum from the First Currency into the Second Currency and (B)
the rate or rates of exchange available to that person at the time of its receipt
of that Sum.

	 	(b)	 	Each Obligor waives any right it may have in any jurisdiction to pay any amount
under the Finance Documents in a currency or currency unit other than that in which it
is expressed to be payable.

	14.2	 	Other indemnities

The Company shall (or shall procure that an Obligor will), within five Business Days of
demand, indemnify each Finance Party against any cost, direct loss or liability incurred
(acting in good faith) by that Finance Party as a result of:

	 	(a)	 	the occurrence of any Event of Default;

	 	(b)	 	a failure by an Obligor to pay any amount due under a Finance Document on its
due date (subject to any grace period applicable thereto), including without
limitation, any cost and direct loss or liability arising as a result of Clause 27
(Sharing among the Finance Parties);

	 	(c)	 	funding, or making arrangements to fund, its participation in a Loan requested
by a Borrower in a Utilisation Request but not made by reason of the operation of any
one or more of the provisions of this Agreement (other than by reason of default or
negligence by that Finance Party alone);

	 	(d)	 	the operation of the Currency Law in relation to any payments made or received
under the Finance Documents; or

	 	(e)	 	a Loan (or part of a Loan) not being prepaid in accordance with a notice of
prepayment given by a Borrower or the Company.

	14.3	 	Indemnity to the Agent

The Company shall promptly indemnify the Agent against any cost and direct loss or
liability incurred by the Agent (acting reasonably) as a result of:

	 	(a)	 	investigating any event which it reasonably believes is a Default; or

	 	(b)	 	acting or relying on any notice, request or instruction which it reasonably
believes to be genuine, correct and appropriately authorised.

	14.4	 	Waiver of consequential damages

In no event shall any Finance Party be liable on any theory of liability for any
special, indirect, consequential or punitive damages and the Company hereby waives, releases
and agrees (for itself and on behalf of the members of the Group) not to sue upon any such
claim for any such damages, whether or not accrued and whether or not known or suspected to
exist in its favour.

	15.	 	MITIGATION BY THE LENDERS

	15.1	 	Mitigation

	 	(a)	 	Each Finance Party shall, in consultation with the Company, take all reasonable
steps to mitigate any circumstances which arise and which would result in any amount
becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1
(Illegality), Clause 12 (Tax gross-up and indemnities), Clause 13 (Increased costs) or
paragraph 3 of Schedule 4 (Mandatory Cost formulae) including (but not limited to)
transferring its rights and obligations under the Finance Documents to another
Affiliate or Facility Office.

	 	(b)	 	Paragraph (a) above does not in any way limit the obligations of any Obligor
under the Finance Documents.

	15.2	 	Limitation of liability

	 	(a)	 	The Company shall indemnify each Finance Party for all costs and expenses
reasonably incurred by that Finance Party as a result of steps taken by it under Clause
15.1 (Mitigation).

	 	(b)	 	A Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation)
if, in the opinion of that Finance Party (acting reasonably), to do so could reasonably
be expected to be prejudicial to it.

	16.	 	COSTS AND EXPENSES

	16.1	 	Transaction expenses

The Company shall promptly on demand pay the Agent and the Arranger the amount (not
exceeding in aggregate US$ 55,000 (fifty five thousand dollars) exclusive of any VAT or any
disbursement incurred by the legal advisers to the Finance Parties in respect of the Finance
Documents) of all costs and expenses (including legal fees) reasonably incurred by any of
them in connection with the negotiation, preparation, printing, execution and syndication
of:

	 	(a)	 	this Agreement and any other documents referred to in this Agreement; and

	 	(b)	 	any other Finance Documents executed after the date of this Agreement.

	16.2	 	Amendment costs

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is
required pursuant to Clause 28.9 (Change of currency), the Company shall, within five
Business Days of demand, reimburse the Agent for the amount of all costs and expenses
(including legal fees) reasonably incurred by the Agent in responding to, evaluating,
negotiating or complying with that request or requirement.

	16.3	 	Enforcement costs

The Company shall, within five Business Days of demand, pay to each Finance Party the
amount of all costs and expenses (including legal fees) incurred by that Finance Party in
connection with the enforcement of, or the preservation of any rights under, any Finance
Document.

7

SECTION 7

GUARANTEE

	17.	 	GUARANTEE AND INDEMNITY

	17.1	 	Guarantee and indemnity

Each Guarantor irrevocably and unconditionally jointly and severally:

	 	(a)	 	guarantees to each Finance Party punctual performance by each Borrower of all
that Borrower’s obligations under the Finance Documents;

	 	(b)	 	undertakes with each Finance Party that whenever a Borrower does not pay any
amount when due under or in connection with any Finance Document, that Guarantor shall
immediately on demand pay that amount as if it was the principal obligor; and

	 	(c)	 	indemnifies each Finance Party immediately on demand against any cost, loss or
liability suffered by that Finance Party if any obligation guaranteed by it is or
becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability
shall be equal to the amount which that Finance Party would otherwise have been
entitled to recover,

provided always that (without prejudice to any of the other obligations of Sovintel as a
Guarantor hereunder) the guarantee of Sovintel shall not, at any time, extend to any of the
obligations or liabilities in respect of Facility A.

	17.2	 	Continuing guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of
sums payable by any Obligor under the Finance Documents, regardless of any intermediate
payment or discharge in whole or in part.

	17.3	 	Reinstatement

If any payment by any Obligor or any discharge given by a Finance Party (whether in
respect of the obligations of any Obligor or any security for those obligations or
otherwise) is avoided or reduced as a result of insolvency or any similar event:

	 	(a)	 	the liability of each Obligor shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and

	 	(b)	 	each Finance Party shall be entitled to recover the value or amount of that
security or payment from each Obligor, as if the payment, discharge, avoidance or
reduction had not occurred.

	17.4	 	Waiver of defences

The obligations of each Guarantor under this Clause 17 will not be affected by an act,
omission, matter or thing which, but for this Clause, would reduce, release or prejudice any
of its obligations under this Clause 17 (without limitation and whether or not known to it
or any Finance Party) including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Obligor or
other person;

	 	(b)	 	the release of any other Obligor or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group;

	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over assets
of, any Obligor or other person or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to realise
the full value of any security;

	 	(d)	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of an Obligor or any other person;

	 	(e)	 	any amendment, novation, supplement, extension, restatement (however
fundamental and whether or not more onerous) or replacement of a Finance Document or
any other document or security including without limitation any change in the purpose
of, any extension of or any increase in any facility or the addition of any new
facility under any Finance Document or other document;

	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document or any other document or security; or

	 	(g)	 	any insolvency or similar proceedings.

	17.5	 	Immediate recourse

Each Guarantor waives any right it may have of first requiring any Finance Party (or
any trustee or agent on its behalf) to proceed against or enforce any other rights or
security or claim payment from any person before claiming from that Guarantor under this
Clause 17. This waiver applies irrespective of any law or any provision of a Finance
Document to the contrary.

	17.6	 	Appropriations

Until all amounts payable at any time by the Obligors under or in connection with the
Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or
agent on its behalf) may:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights held or
received by that Finance Party (or any trustee or agent on its behalf) in respect of
those amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled to the
benefit of the same; and

	 	(b)	 	hold in an interest-bearing suspense account any moneys received from any
Guarantor or on account of any Guarantor’s liability under this Clause 17.

	17.7	 	Deferral of Guarantors’ rights

Until all amounts payable at any time by the Obligors under or in connection with the
Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs,
no Guarantor will exercise any rights which it may have by reason of performance by it of
its obligations under the Finance Documents:

	 	(a)	 	to be indemnified by an Obligor;

	 	(b)	 	to claim any contribution from any other guarantor of any Obligor’s obligations
under the Finance Documents; and/or

	 	(c)	 	to take the benefit (in whole or in part and whether by way of subrogation or
otherwise) of any rights of the Finance Parties under the Finance Documents or of any
other guarantee or security taken pursuant to, or in connection with, the Finance
Documents by any Finance Party.

	17.8	 	Limitation on U.S. Guarantors

Any term or provision of this Clause 17 or any other term in this Agreement or any
Finance Document notwithstanding, the maximum aggregate amount of the obligations for which
any U.S. Guarantor shall be liable under this Agreement shall in no event exceed an amount
equal to the largest amount that would not render such U.S. Guarantor’s obligations under
this Agreement, subject to avoidance under applicable United States federal or state
fraudulent conveyance laws. 

	17.9	 	Release of Guarantors’ right of contribution

If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with
the terms of the Finance Documents for the purpose of any sale or other disposal of that
Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

	 	(a)	 	that Retiring Guarantor is released by each other Guarantor from any liability
(whether past, present or future and whether actual or contingent) to make a
contribution to any other Guarantor arising by reason of the performance by any other
Guarantor of its obligations under the Finance Documents; and

	 	(b)	 	each other Guarantor waives any rights it may have by reason of the performance
of its obligations under the Finance Documents to take the benefit (in whole or in part
and whether by way of subrogation or otherwise) of any rights of the Finance Parties
under any Finance Document or of any other security taken pursuant to, or in connection
with, any Finance Document where such rights or security are granted by or in relation
to the assets of the Retiring Guarantor.

	17.10	 	Additional security

This guarantee is in addition to and is not in any way prejudiced by any other
guarantee or security now or subsequently held by any Finance Party.

8

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	18.	 	REPRESENTATIONS

Save as otherwise specified, each Obligor makes the representations and warranties set
out in this Clause 18 to each Finance Party on the date of this Agreement.

	18.1	 	Status

	 	(a)	 	It is a corporation, duly incorporated and validly existing under the law of
its jurisdiction of incorporation.

	 	(b)	 	It and each of its Subsidiaries has the power to own its assets and carry on
its business as it is being conducted.

	18.2	 	Binding obligations

The obligations expressed to be assumed by it in each Finance Document are, subject to
any general principles of law as at the date of this Agreement limiting its obligations
which are specifically referred to in any legal opinion delivered pursuant to Clause 4
(Conditions of Utilisation) or Clause 24 (Changes to the Obligors), legal, valid, binding
and enforceable obligations.

	18.3	 	Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the
Finance Documents do not and will not conflict with:

	 	(a)	 	any law or regulation applicable to it;

	 	(b)	 	its or any of its Subsidiaries’ constitutional documents; or

	 	(c)	 	any agreement or instrument binding upon it or any of its Subsidiaries or any
of its or any of its Subsidiaries’ assets.

	18.4	 	Power and authority

	 	(a)	 	It has the power to enter into, perform and deliver, and has taken all
necessary action (except for any such action which is not required to be performed
prior to entering into the Finance Documents) to authorise its entry into, performance
and delivery of, the Finance Documents to which it is a party and the transactions
contemplated by those Finance Documents.

	 	(b)	 	The Russian Obligor further represents, without prejudice to paragraph (a)
above, that as at the date of execution of each Finance Document to which it is a
party:

	 	(i)	 	to the best of its knowledge, for the purposes of Article 45 of the
Companies Law, each of the participants of the Russian Obligor is interested
in the conclusion by the Russian Obligor of such Finance Documents and the
transactions contemplated by the same and the Russian Obligor has obtained all
necessary corporate approvals and it and its participants have complied with
all requirements relating thereto;

	 	(ii)	 	other than the participants of the Russian Obligor, for the purposes
of Article 45 of the Companies Law, there are no persons interested in the
conclusion by it of such Finance Documents or any transactions contemplated by
the same; and

	 	(iii)	 	for the purposes of Article 46 of the Companies Law, its entry into
and delivery of, and performance of its obligations under, such Finance
Documents and transactions constitute a major transaction for it, for which
the requisite approval has been duly obtained.

	18.5	 	Validity and admissibility in evidence

All Transaction Authorisations and all other Authorisations required (except for those
which are not required to be performed prior to entering into the Finance Documents):

	 	(a)	 	to enable it lawfully to enter into, exercise its rights and comply with its
obligations in the Finance Documents to which it is a party; and

	 	(b)	 	to make the Finance Documents to which it is a party admissible in evidence in
its jurisdiction of incorporation (other than the Russian legal requirements to provide
a duly certified translation thereof into Russian),

	 	 	 
	18.6

	 	have been obtained or effected and are in full force and effect.

Governing law and enforcement

	 	(a)	 	The choice of English law as the governing law of the Finance Documents will be
recognised and enforced in its jurisdiction of incorporation subject to the Legal
Reservations.

	 	(b)	 	Any judgment obtained in England in relation to a Finance Document will be
recognised and enforced in its jurisdiction of incorporation subject to the Legal
Reservations.

	18.7	 	Insolvency — Winding-up

No:

	 	(a)	 	corporate action, legal proceeding or other procedure or step described in
Clause 22.7 (Insolvency Proceedings); or

	 	(b)	 	creditors’ process described in Clause 22.8 (Creditors’ Process)

has been taken or, to its knowledge, threatened against it (or, in the case of the Company
to its knowledge, threatened against any other member of the Group); and none of the
circumstances described in Clause 22.6 (Insolvency) applies to it (or, in the case of the
Company, to any other member of the Group).

	18.8	 	Good title to assets

It (and, in the case of the Company, each other member of the Group) has a good and
valid title to, or valid leases or licenses of, and all necessary Authorisations (including
the Transaction Authorisations) have been obtained or, if not, are pending approval but
reasonably expected to be obtained, to use, the assets necessary to carry on its business as
presently conducted, the absence or the non acquisition of which might reasonably be
expected to result in a Material Adverse Effect.

	18.9	 	Deduction of Tax

It is not required to make any deduction for or on account of Tax from any payment it
may make under any Finance Document provided that, in the case of a payment of interest on
any Loan, any Lender to which any such payment is made is a Qualifying Lender.

	18.10	 	No default

	 	(a)	 	No Default is continuing or might reasonably be expected to result from the
making of any Utilisation.

	 	(b)	 	To its knowledge, no other event or circumstance is outstanding which
constitutes a default under any other agreement or instrument which is binding on it
(or, in the case of the Company, on any other member of the Group) or to which its (or,
in the case of the Company, such other member of the Group’s) assets are subject which
in each case might reasonably be expected to have a Material Adverse Effect.

	18.11	 	No misleading information

	 	(a)	 	Any factual information provided by any member of the Group for the purposes of
the Information Memorandum was true and accurate in all material respects as at the
date it was provided or as at the date (if any) at which it is stated.

	 	(b)	 	The financial projections contained in the Information Memorandum have been
prepared on the basis of recent historical information and on the basis of reasonable
assumptions.

	 	(c)	 	Nothing has (to its knowledge) occurred or been omitted from the Information
Memorandum and no information has been given or withheld that results in the
information contained in the Information Memorandum being untrue or constitutes a
misrepresentation in any material respect.

	 	(d)	 	All written information (other than the Information Memorandum) supplied to the
Finance Parties, in relation to the entering into, the delivery of and the performance
of the Finance Documents, by any member of the Group is true, complete and accurate in
all material respects as at the date it was given and does not constitute a
misrepresentation in any material respect.

	18.12	 	Financial statements

	 	(a)	 	The Company’s Original Financial Statements were prepared in accordance with US
GAAP.

	 	(b)	 	The Company’s Original Financial Statements fairly represent its financial
condition and operations during the relevant financial year.

	 	(c)	 	There has been no material adverse change in its business or financial
condition (or the business or consolidated financial condition of the Group, in the
case of the Company) since the date to which the Original Financial Statements were
drawn up.

	18.13	 	Pari passu ranking

Its payment obligations under the Finance Documents rank at least pari passu with the
claims of all its other unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally.

	18.14	 	No proceedings pending or threatened

No litigation, arbitration or administrative proceedings of or before any court,
arbitral body or agency which, if adversely determined, might reasonably be expected to have
a Material Adverse Effect have (to its knowledge) been started or threatened against it or
any of its Material Subsidiaries.

	18.15	 	Compliance with laws

It and each member of the Group is conducting its business and operations in compliance
with all laws, regulations and Authorisations (including Transaction Authorisations)
applicable to it, when failure to do so might reasonably be expected to have a Material
Adverse Effect.

	18.16	 	Environmental compliance

It has performed and observed in all material respects all Environmental Law,
Environmental Permits and all other material covenants, conditions, restrictions or
agreements directly or indirectly concerned with any contamination, pollution or waste or
the release or discharge of any toxic or hazardous substance in connection with any real
property which is or was at any time owned, leased or occupied by any member of the Group or
on which any member of the Group has conducted any activity where failure to do so might
reasonably be expected to have a Material Adverse Effect.

	18.17	 	Environmental Claims

No Environmental Claim has been commenced or, to its knowledge, is threatened against
it where that claim might reasonably be expected, if determined against that member of the
Group, to have a Material Adverse Effect.

	18.18	 	Taxation

	 	(a)	 	It has duly and punctually paid and discharged all Taxes imposed upon it or its
assets within the time period allowed without incurring penalties (save to the extent
that (i) payment is being contested in good faith, (ii) it has maintained adequate
reserves to make a payment for those Taxes and (iii) payment can be lawfully withheld).

	 	(b)	 	It is not materially overdue in the filing of any Tax returns.

	 	(c)	 	No material claims are being or are reasonably expected to be asserted against
it with respect to Taxes.

	 	(d)	 	It is resident for Tax purposes only in the jurisdiction of its incorporation.

	 	(e)	 	In the case of each U.S. Obligor, it has properly filed or caused to be filed
(and, where applicable, has been included in) all material U.S. Tax returns, reports
and statements (whether federal, state, local or otherwise) applicable to it in all
jurisdictions in which such returns, reports and statements are required to be filed.
All such U.S. Tax returns are correct and complete in all material respects.

	 	(f)	 	In the case of each U.S. Obligor, it has paid all material U.S. Taxes due
whether or not shown on any tax return, together with applicable interest and
penalties, except to the extent such U.S. Taxes are contested in good faith by proper
proceedings which stay the imposition of any penalty, fine or lien resulting from the
non-payment of such U.S. Taxes and with respect to which adequate reserves have been
set aside for the payment of such U.S. Taxes.

	18.19	 	ERISA and Multiemployer Plans

It has not established, nor does it maintain, contribute or have liability with respect
to any employee benefit plan that is covered by Title IV of ERISA.

	18.20	 	No Immunity

In any proceedings taken in its jurisdiction of incorporation in relation to this
Agreement, it will not be entitled to claim for itself or any of its assets immunity from
suit, execution, attachment or other legal process.

	18.21	 	Private and commercial acts

Its execution of the Finance Documents constitutes, and its exercise of its rights and
performance of its obligations hereunder will constitute, private and commercial acts done
and performed for private and commercial purposes.

	18.22	 	Federal Reserve Regulations

	 	(a)	 	It is not engaged nor will it engage, principally or as one of its important
activities, in the business of purchasing or carrying Margin Stock or extending credit
for the purpose of purchasing or carrying Margin Stock.

	 	(b)	 	None of the proceeds of the Loans or other extensions of credit under this
Agreement will be used, directly or indirectly, for the purpose of buying or carrying
any Margin Stock, for the purpose of reducing or retiring any Financial Indebtedness
that was originally incurred to buy or carry any Margin Stock or for any other purpose
which might cause all or any Loans or other extensions of credit under this Agreement
to be considered a “purpose credit” within the meaning of Regulation U or Regulation X.

	18.23	 	Investment Companies

Neither it nor any person controlling it or any Subsidiary of it is or is required to
be registered as an “investment company” under the U.S. Investment Company Act of 1940 (the
“1940 Act”).

	18.24	 	Anti-Terrorism Laws

	 	(a)	 	To its knowledge, no Obligor nor any Affiliate thereof: (i) is, or is
controlled by, a Restricted Party; (ii) has received funds or other property from a
Restricted Party; or (iii) is in breach of or is the subject of any action or
investigation under any Anti-Terrorism Law.

	 	(b)	 	It and, to its knowledge, each Affiliate has taken reasonable measures to
ensure compliance with the Anti-Terrorism Laws.

	18.25	 	Centre of main interests and establishments

	 	(a)	 	Each US Obligor represents with respect to itself that it has its “centre of
main interests” (as that term is used in Article 3(1) of the Council of the European
Union Regulation no. 1346/2000 on Insolvency Proceedings (the “Regulation”)) in the
United States, and each Russian Obligor represents with respect to itself that it has
its “centre of main interests” in the Russian Federation.

	 	(b)	 	It has no “establishment” (as that term is used in Article 2(h) of the
Regulation) in a jurisdiction other than the United States in the case of each US
Obligor and the Russian Federation in the case of each Russian Obligor.

	18.26	 	No Agent

For the purposes of the transaction contemplated by the Finance Documents, it is
acting, on its own behalf and not as a trustee or agent on behalf of any third party.

	18.27	 	Repetition

The Repeating Representations are made and repeated by each Obligor (by reference to
the facts and circumstances then existing) on:

	 	(a)	 	 the date of each Utilisation Request and the first day of every second
Interest Period thereafter; and

	 	(b)	 	in the case of an Additional Obligor, the day on which that company becomes (or
it is proposed that that company becomes) an Additional Obligor.

	19.	 	INFORMATION UNDERTAKINGS

The undertakings in this Clause 19 remain in force from the date of this Agreement for
so long as any amount is outstanding under the Finance Documents or any Commitment is in
force.

	19.1	 	Financial statements

The Company shall supply to the Agent in sufficient copies for all the Lenders:

	 	(a)	 	as soon as the same become available, but in any event within 120 days after
the end of each of its financial years:

	 	(i)	 	its audited consolidated financial statements for that financial year;

	 	(ii)	 	the unconsolidated unaudited financial statements of each Obligor for
that financial year prepared for the purposes of preparing US GAAP compliant
consolidated financial statements for the Reporting Group;

	 	(b)	 	as soon as the same become available, but in any event within 90 days after the
end of the first half of each of its financial years:

	 	(i)	 	its consolidated unaudited financial statements for that financial
half year; and

	 	(ii)	 	the unconsolidated unaudited financial statements of each Obligor for
that financial half year prepared for the purposes of preparing US GAAP
compliant consolidated financial statements for the Reporting Group;

	 	(c)	 	as soon as the same become available, but in any event within 105 days after
the end of each of its financial years, the audited financial statements of
each Russian Obligor for that financial year, prepared under the accounting standards
of the Russian Federation in accordance with the Directive of the Ministry of Finance
of the Russian Federation No. 67 dated 22 July 2003; and

	 	(d)	 	as soon as the same become available, but in any event within 45 days after the
end of the first, second and third financial quarter of each of its financial years,
the unaudited financial statements of each Russian Obligor for that financial
quarter, prepared under the accounting standards of the Russian Federation in
accordance with the Directive of the Ministry of Finance of the Russian Federation No.
67 dated 22 July 2003.

	19.2	 	Compliance Certificate

	 	(a)	 	The Company shall supply to the Agent, with each set of financial statements
delivered pursuant to paragraph (a)(i) or (b)(i) of Clause 19.1 (Financial statements),
a Compliance Certificate setting out (in reasonable detail) computations as to
compliance with Clause 20 (Financial covenants) as at the date as at which those
financial statements were prepared.

	 	(b)	 	Each Compliance Certificate shall be signed by two authorised senior officers
of the Company and, if required to be delivered with the financial statements delivered
pursuant to paragraph (a)(i) of Clause 19.1 (Financial statements), shall be reported
on by the Company’s auditors in the form agreed by the Company and the Majority Lenders
before the date of this Agreement.

	19.3	 	Requirements as to financial statements

	 	(a)	 	Each set of consolidated financial statements delivered by the Company pursuant
to paragraph (a)(i) and (b)(i) of Clause 19.1 (Financial statements) shall be certified
by an authorised senior officer of the Company as fairly representing the financial
condition of the Reporting Group as at the date as at which those financial statements
were drawn up.

	 	(b)	 	Each set of unconsolidated financial statements provided by the Company
pursuant to paragraphs (a)(ii) and (b)(ii) of Clause 19.1 (Financial statements) shall
be certified by an authorised senior officer of the relevant company as accurately
representing the information that is used or shall be used to prepare the consolidated
financial statements of the Reporting Group for the relevant period.

	 	(c)	 	Each set of financial statements provided by the Company pursuant to paragraph
(c) and (d) of Clause 19.1 (Financial Statements) shall be certified by an authorised
senior officer of the relevant Russian Obligor and be affixed with that Russian
Obligor’s seal.

	 	(d)	 	Each set of financial statements provided by the Company pursuant to paragraph
(c) and (d) of Clause 19.1 (Financial Statements) shall bear, if available, a receipt
stamp from the tax inspectorate of the relevant Russian Obligor’s place of tax
registration.

	 	(e)	 	The Company shall procure its financial statements delivered by it pursuant to
paragraph (a)(i) and (b)(i) of Clause 19.1 (Financial statements) is prepared using US
GAAP, and accounting practices and financial reference periods consistent with those
applied in the preparation of its Original Financial Statements unless, in relation to
any set of financial statements, it notifies the Agent that there has been a
significant change in US GAAP, or the accounting practices or reference periods and the
Company shall deliver to the Agent:

	 	(i)	 	a description of any change necessary for those financial statements
to reflect the US GAAP, accounting practices and reference periods upon which
its Original Financial Statements were prepared; and

	 	(ii)	 	sufficient information, in form and substance as may be reasonably
required by the Agent (including an opinion from the auditors of the Company),
to enable the Lenders to determine whether Clause 20 (Financial covenants) has
been complied with and make an accurate comparison between the financial
position indicated in those financial statements and the Company’s Original
Financial Statements.

	 	(f)	 	If the Company notifies the Agent of a change in accordance with paragraph (e)
above then the Company and Agent shall enter into negotiations in good faith with a
view to agreeing:

	 	(i)	 	whether or not the change might result in any material alteration in
the commercial effect of any of the terms of this Agreement; and

	 	(ii)	 	if so, any amendments to this Agreement which may be necessary to
ensure that the change does not result in any material alteration in the
commercial effect of those terms,

and if any amendments are agreed they shall take effect and be binding on each of
the Parties in accordance with their terms.

Any reference in this Agreement to those financial statements shall be construed as
a reference to those financial statements as adjusted to reflect the basis upon
which the Original Financial Statements were prepared.

	19.4	 	Information: miscellaneous

The Company shall supply to the Agent (in sufficient copies for all the Lenders, if the
Agent so requests):

	 	(a)	 	all documents dispatched by the Company to its shareholders (or any class of
them) or its creditors generally (or any class of them) at the same time as they are
dispatched;

	 	(b)	 	promptly upon becoming aware of them, the details of any litigation,
arbitration or administrative proceedings which are current, threatened or pending
against any member of the Group, and which might reasonably be expected, if adversely
determined, to have a Material Adverse Effect; and

	 	(c)	 	promptly, such further information regarding the financial condition, business
and operations of any member of the Group as any Finance Party (through the Agent) may
reasonably request.

	19.5	 	Notification of default

	 	(a)	 	Each Obligor shall notify the Agent of any Default (and the steps, if any,
being taken to remedy it) promptly upon becoming aware of its occurrence (unless that
Obligor is aware that a notification has already been provided by another Obligor).

	 	(b)	 	Promptly upon a request by the Agent, the Company shall supply to the Agent a
certificate signed by two of its authorised senior officers on its behalf certifying
that no Default is continuing (or if a Default is continuing, specifying the Default
and the steps, if any, being taken to remedy it).

	19.6	 	Use of websites

	 	(a)	 	The Company may satisfy its obligation under this Agreement to deliver any
information in relation to those Lenders (the “Website Lenders”) who accept this method
of communication by posting this information onto an electronic website designated by
the Company and the Agent (the “Designated Website”) if:

	 	(i)	 	the Agent expressly agrees (after consultation with each of the
Lenders) that it will accept communication of the information by this method;

	 	(ii)	 	both the Company and the Agent are aware of the address of and any
relevant password specifications for the Designated Website; and

	 	(iii)	 	the information is in a format previously agreed between the Company
and the Agent.

If any Lender (a “Paper Form Lender”) does not agree to the delivery of information
electronically then the Agent shall notify the Company accordingly and the Company
shall supply the information to the Agent (in sufficient copies for each Paper Form
Lender) in paper form. In any event the Company shall supply the Agent with at
least one copy in paper form of any information required to be provided by it.

	 	(b)	 	The Agent shall supply each Website Lender with the address of and any relevant
password specifications for the Designated Website following designation of that
website by the Company and the Agent.

	 	(c)	 	The Company shall promptly upon becoming aware of its occurrence notify the
Agent if:

	 	(i)	 	the Designated Website cannot be accessed due to technical failure;

	 	(ii)	 	the password specifications for the Designated Website change;

	 	(iii)	 	any new information which is required to be provided under this
Agreement is posted onto the Designated Website;

	 	(iv)	 	any existing information which has been provided under this Agreement
and posted onto the Designated Website is amended; or

	 	(v)	 	the Company becomes aware that the Designated Website or any
information posted onto the Designated Website is or has been infected by any
electronic virus or similar software.

If the Company notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above,
all information to be provided by the Company under this Agreement after the date
of that notice shall be supplied in paper form unless and until the Agent and each
Website Lender is satisfied that the circumstances giving rise to the notification
are no longer continuing.

	 	(d)	 	Any Website Lender may request, through the Agent, one paper copy of any
information required to be provided under this Agreement which is posted onto the
Designated Website. The Company shall comply with any such request within ten Business
Days.

	19.7	 	“Know your customer” checks

	 	(a)	 	If:

	 	(i)	 	the introduction of or any change in (or in the interpretation,
administration or application of) any law or regulation made after the date of
this Agreement;

	 	(ii)	 	any change in the status of an Obligor or the composition of the
shareholders of an Obligor after the date of this Agreement, except with
respect to the normal trading of the Company’s shares on Nasdaq, the London
Stock Exchange, the Russian Trading System or any other regulated stock
exchange market acceptable for the Lenders; or

	 	(iii)	 	a proposed assignment or transfer by a Lender of any of its rights
and obligations under this Agreement to a party that is not a Lender prior to
such assignment or transfer,

obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any
prospective new Lender) to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is not
already available to it, each Obligor shall promptly upon the request of the Agent
or any Lender supply, or procure the supply of, such documentation and other
evidence as is reasonably requested by the Agent (for itself or on behalf of any
Lender) or any Lender (for itself or, in the case of the event described in
paragraph (iii) above, on behalf of any prospective new Lender) in order for the
Agent, such Lender or, in the case of the event described in paragraph (iii) above,
any prospective new Lender to carry out and be satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable laws
and regulations pursuant to the transactions contemplated in the Finance Documents.

	 	(b)	 	Each Lender shall promptly upon the request of the Agent supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by the
Agent (for itself) in order for the Agent to carry out and be satisfied it has complied
with all necessary “know your customer” or other similar checks under all applicable
laws and regulations pursuant to the transactions contemplated in the Finance
Documents.

	 	(c)	 	The Company shall, by not less than ten Business Days’ written prior notice to
the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention
to request that one of its Subsidiaries becomes an Additional Obligor pursuant to
Clause 24 (Changes to the Obligors).

	 	(d)	 	Following the giving of any notice pursuant to paragraph (c) above, if the
accession of such Additional Obligor obliges the Agent or any Lender to comply with
“know your customer” or similar identification procedures in circumstances where the
necessary information is not already available to it, the Company shall promptly upon
the request of the Agent or any Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent (for itself or
on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new
Lender) in order for the Agent or such Lender or any prospective new Lender to carry
out and be satisfied it has complied with all necessary “know your customer” or other
similar checks under all applicable laws and regulations pursuant to the accession of
such Subsidiary to this Agreement as an Additional Obligor. 

	20.	 	FINANCIAL COVENANTS

	20.1	 	Financial definitions

In this Clause 20:

"Borrowings” means, at any time, the outstanding principal, capital or nominal amount and
any fixed or minimum premium payable on prepayment or redemption of any indebtedness for or
in respect of:

	 	(a)	 	moneys borrowed and debit balances with financial institutions;

	 	(b)	 	any amount raised by acceptance under any acceptance credit facility;

	 	(c)	 	any amount raised pursuant to any note purchase facility or the issue
of bonds, notes, debentures, loan stock or any similar instrument;

	 	(d)	 	the amount of any liability in respect of any lease or hire purchase
contract which would, in accordance with US GAAP be treated as a finance or
capital lease;

	 	(e)	 	receivables sold or discounted (other than any receivables to the
extent they are sold on a non-recourse basis);

	 	(f)	 	any counter-indemnity obligation in respect of a guarantee, indemnity,
bond, standby or documentary letter of credit or any other instrument issued by
a bank or financial institution (excluding any given in respect of trade credit
arising in the ordinary course of business);

	 	(g)	 	any amount raised by the issue of redeemable shares which are
redeemable before the Termination Date;

	 	(h)	 	any amount of any liability under an advance or deferred purchase
agreement if one of the primary reasons behind the entry into the agreement is
to raise finance;

	 	(i)	 	any amount raised under any other transaction (including any forward
sale or purchase agreement) having the commercial effect of a borrowing; and

	 	(j)	 	(without double counting) the amount of any liability in respect of any
guarantee or indemnity for any of the items referred to in paragraphs (a) to (i)
above.

"Consolidated EBIT” means the consolidated profits of the Reporting Group from ordinary
activities before taxation:

	 	(a)	 	before deducting any Consolidated Net Finance Charges;

	 	(b)	 	before taking into account any items treated as exceptional or
extraordinary items; and

	 	(c)	 	after deducting the amount of any profit of any member of the Reporting
Group which is attributable to minority interests,

in each case, to the extent added, deducted or taken into account, as the case may be, for
the purposes of determining the profits of the Reporting Group from ordinary activities
before taxation.

"Consolidated EBITDA” means Consolidated EBIT before deducting any amount attributable to
the amortisation of intangible assets or the depreciation of tangible assets.

"Consolidated Net Finance Charges” means, for any Relevant Period, the aggregate amount of
the accrued interest, commission, fees, discounts, prepayment penalties or premiums and
other finance payments in respect of Borrowings whether paid, payable or capitalised by any
member of the Reporting Group in respect of that Relevant Period:

	 	(a)	 	excluding any such obligations owed to any other member of the
Reporting Group;

	 	(b)	 	including the interest element of leasing and hire purchase payments;

	 	(c)	 	including any accrued commission, fees, discounts and other finance
payments payable by any member of the Reporting Group under any interest rate
hedging arrangement; and

	 	(d)	 	deducting any accrued interest owing to any member of the Reporting
Group on any deposit or bank account.

"Consolidated Total Debt” means at any time the aggregate amount of all obligations of the
Reporting Group for or in respect of Borrowings but:

	 	(a)	 	excluding any such obligations to any other member of the Reporting
Group; and

	 	(b)	 	including, in the case of finance leases, only the capitalised value
therefore,

and so that no amount shall be included or excluded more than once.

"Equity” means at any time the aggregate of the amounts paid up or credited as paid up on
the issued ordinary share capital of the Company.

All definitions calculated above are based on the latest audited consolidated financial
statements of the Reporting Group.

"Relevant Period” means each period of twelve months ending on the last day of the Company’s
financial year and each period of twelve months ending on the last day of the first half of
the Company’s financial year.

	20.2	 	Financial condition

The Company shall ensure that:

	 	(a)	 	Debt Cover

The ratio of Consolidated Total Debt to Consolidated EBITDA for any Relevant Period
shall not at any time exceed 2:1.

	 	(b)	 	Gearing Ratio

The ratio of Consolidated Total Debt to Equity shall not at any time exceed 0,5:1.

	 	(c)	 	Interest Cover

The ratio of Consolidated EBITDA to Consolidated Net Finance Charges in respect of
any Relevant Period shall not be less than 7:1.

	20.3	 	Financial testing

The financial covenants set out in Clause 20.2 (Financial condition) shall be tested by
reference to each of the financial statements and/or each Compliance Certificate delivered
pursuant to Clause 19.2 (Compliance Certificate).

	21.	 	GENERAL UNDERTAKINGS

The undertakings in this Clause 21 remain in force from the date of this Agreement for
so long as any amount is outstanding under the Finance Documents or any Commitment is in
force.

	21.1	 	Authorisations

Each Obligor shall promptly:

	 	(a)	 	obtain, comply with and do all that is necessary to maintain in full force and
effect; and

	 	(b)	 	supply certified copies to the Agent of,

any Authorisation (including the Transaction Authorisations) required under any law or
regulation of its jurisdiction of incorporation to enable it to perform its obligations
under the Finance Documents and to ensure the legality, validity, enforceability or
admissibility in evidence in its jurisdiction of incorporation of any Finance Document.

	21.2	 	Compliance with laws

Each Obligor shall comply in all material respects with all laws, regulations and
Authorisations (including Transaction Authorisations) applicable to it.

	21.3	 	Compliance with Currency Law

The Russian Borrower will:

	 	(a)	 	prior to the date of the first Utilisation Request, open and at all times
thereafter maintain the Loan Passport for the Facility with the Account Bank;

	 	(b)	 	in a timely manner, submit to the Account Bank such documents and other
information as may be required from time to time under the Currency Law (including,
without limitation, Instruction No. 117-I of the Central Bank of the Russian Federation
dated 15 June 2004) for the purpose of utilising the Facility and performing its
obligations under the Finance Documents, in the form and in accordance with the
procedure described therein;

	 	(c)	 	comply with all requirements established under or pursuant to the Currency Law
in relation to any payment made or to be made by or to it under the Finance Documents
(including any Special Account Requirements); and

	 	(d)	 	ensure that its compliance with such requirements does not impair its ability
to comply with its obligations under the Finance Documents.

	21.4	 	Negative pledge

	 	(a)	 	No Obligor shall, without the consent of the Majority Lenders, (and the Company
shall ensure that no other member of the Group will) create or permit to subsist any
Security over any of its assets.

	 	(b)	 	No Obligor shall, without the consent of the Majority Lenders, (and the Company
shall ensure that no other member of the Group will):

	 	(i)	 	sell, transfer or otherwise dispose of any of its assets on terms
whereby they are or may be leased to or re-acquired by an Obligor or any other
member of the Group;

	 	(ii)	 	sell, transfer or otherwise dispose of any of its receivables on
recourse terms;

	 	(iii)	 	enter into any arrangement under which money or the benefit of a
bank or other account may be applied, set-off or made subject to a combination
of accounts; or

	 	(iv)	 	enter into any other preferential arrangement having a similar
effect,

in circumstances where the arrangement or transaction is entered into primarily as
a method of raising Financial Indebtedness or of financing the acquisition of an
asset.

	 	(c)	 	Paragraphs (a) and (b) above do not apply to:

	 	(i)	 	any Security listed in Schedule 9 (Existing Security) except to the
extent the principal amount secured by that Security exceeds the amount stated
in that Schedule;

	 	(ii)	 	any netting or set-off arrangement entered into by any member of the
Group in the ordinary course of its banking arrangements for the purpose of
netting debit and credit balances;

	 	(iii)	 	any lien arising by operation of law and in the ordinary course of
trading;

	 	(iv)	 	any Security over or affecting (or transaction (“Quasi-Security”)
described in paragraph (b) above affecting) any asset acquired by a member of
the Group after the date of this Agreement if:

	 	(A)	 	the Security or Quasi-Security was not created in contemplation
of the acquisition of that asset by a member of the Group;

	 	(B)	 	the principal amount secured has not been increased in
contemplation of, or since the acquisition of that asset by a member of
the Group; and

	 	(C)	 	the Security or Quasi-Security is removed or discharged within
four months of the date of acquisition of such asset;

	 	(v)	 	any Security or Quasi-Security over or affecting any asset of any
company which becomes a member of the Group after the date of this Agreement,
where the Security or Quasi-Security is created prior to the date on which
that company becomes a member of the Group, if:

	 	(A)	 	the Security or Quasi-Security was not created in contemplation
of the acquisition of that company;

	 	(B)	 	the principal amount secured has not increased in contemplation
of or since the acquisition of that company; and

	 	(C)	 	the Security or Quasi-Security is removed or discharged within
four months of that company becoming a member of the Group; or

	 	(vi)	 	any Security entered into pursuant to any Finance Document;

	 	(vii)	 	any Security which exists as an easement, right of way, servitude by
operation of law or any other similar lien or encumbrance not interfering with
the business of any member of the Group;

	 	(viii)	 	any Security over assets the value of which (when aggregated with
the value of any other assets over which the Company or any Obligor has
granted Security not allowed under the preceding sub-paragraphs) does not
exceed an amount equal to five per cent of the Company’s consolidated assets,
as calculated by reference to the most recently consolidated audited financial
statements provided by the Company pursuant to Clause 19.1 (Financial
Statements).

	21.5	 	Disposals

	 	(a)	 	No Obligor shall, without the consent of the Majority Lenders (and the Company
shall ensure that no other member of the Group will), enter into a single transaction
or a series of transactions (whether related or not) and whether voluntary or
involuntary to sell, lease, transfer or otherwise dispose of any asset.

	 	(b)	 	Paragraph (a) above does not apply to any sale, lease, transfer or other
disposal:

	 	(i)	 	made in the ordinary course of trading of the disposing entity;

	 	(ii)	 	of assets in exchange for other assets comparable or superior as to
type, value and quality; or

	 	(iii)	 	where the book value of the assets (when aggregated with the book
value of the assets for any other sale, lease, transfer or other disposal by
the Group, other than any permitted under paragraphs (i) to (ii) above) does
not exceed five per cent of the consolidated total assets of the Group.

	21.6	 	Merger

	 	(a)	 	No Obligor shall (and the Company shall ensure that no other member of the
Group will), enter into any amalgamation, demerger, merger or corporate reconstruction
and no Russian Obligor shall enter into any Russian Corporate Reorganisation.

	 	(b)	 	Paragraph (a) shall not apply to any intra-Group reorganisation on a solvent
basis, provided that to the extent that such reorganisation involves one or more
Obligors, an Obligor is the surviving entity and remains responsible for all the
obligations under the Finance Documents of the Obligors involved in such
reorganisation.

	21.7	 	Change of business

No Obligor shall, without the consent of the Majority Lenders, cease to carry on the
primary business carried on at the date of this Agreement or shall make any substantial
change to the general nature of its business from that carried on at the date of this
Agreement.

	21.8	 	Insurance

Each Obligor shall maintain insurances on and in relation to its business and assets
with reputable underwriters or insurance companies against those risks and to the extent as
is usual for companies carrying on the same or substantially similar business in the
relevant jurisdiction.

	21.9	 	Environmental Compliance

Each Obligor shall comply in all material respects with all Environmental Law and
obtain and maintain any Environmental Permits where failure to do so might reasonably be
expected to have a Material Adverse Effect.

	21.10	 	Environmental Claims

Each Obligor shall inform the Agent in writing as soon as reasonably practicable upon
becoming aware of the same if any Environmental Claim has been commenced or (to its
knowledge) is threatened against it, where the claim might reasonably be expected, if
determined against it, to have a Material Adverse Effect.

	21.11	 	Taxation

Each Obligor shall duly and punctually pay and discharge all Taxes imposed upon it or
its assets within the time period allowed without incurring penalties (save to the extent
that (i) payment is being contested in good faith by appropriate proceedings that are
reasonably likely to succeed, (ii) adequate reserves are being maintained for those Taxes
and (iii) where such payment can be lawfully withheld).

	21.12	 	Notification of Tax claims

Each Obligor shall immediately disclose to the Agent any Tax arrears or claims, which
are of a material amount, together (in each case) with details of the steps (if any) being
taken to contest such liabilities or of the efforts (if any) to negotiate a settlement of
such liabilities with the relevant Tax authorities.

	21.13	 	Acquisitions

No Obligor shall, without the consent of the Majority Lenders (and the Company shall
ensure that no other member of the Group will) acquire any company, business, assets or
undertaking unless (a) any such acquisition is within the industry of telecommunications and
media and (b) the aggregate consideration payable in respect of any such acquisition does
not exceed the greater of (i) US$75,000,000 (seventy five million dollars) (or its
equivalent in other currencies) or (ii) five per cent of the market capitalisation of the
Company except pursuant to the Acquisition Agreement whereby the Company or one of its
Subsidiaries received 51% ownership in ZAO Cortec and its wholly-owned Subsidiaries ZAO
Investelektrosvyaz, ZAO Kabelstroy and other Subsidiaries (jointly doing business as the
Corbina Telecom Group) in exchange for an issue of approximately 8% of the Company’s shares
calculated on a post-acquisition basis and approximately US$10,000,000 in cash.

	21.14	 	Loans and Guarantees

Save for (a) any guarantee or indemnity granted by any member of the Reporting Group in
respect of any obligation of any other member of the Reporting Group up to a maximum
aggregate amount for the Reporting Group of US$50,000,000 (fifty million dollars), and (b)
any loan, credit, guarantee or indemnity granted by any member of the Reporting Group to any
other member of the Reporting Group, no Obligor shall (and the Company shall ensure that no
other member of the Group will) make any loans, grant any credit (save in the ordinary
course of business) or give any guarantee or indemnity (except as required under any of the
Finance Documents) to or for the benefit of any person or otherwise voluntarily assume any
liability, whether actual or contingent, in respect of any obligation of any person.

	21.15	 	Access

To the extent permitted by any applicable law, each Obligor shall, and the Company
shall ensure that each member of the Group will permit, at the request of the Agent (for
itself and/or accountants or other professional advisers and contractors of the Agent), full
access on reasonable notice at the risk and cost of the Obligor to premises, assets, books,
accounts and records of each member of the Group.

	21.16	 	Pari Passu

Each Borrower shall procure that its payment obligations under the Finance Documents
rank at least pari passu with the claims of all its other unsecured and unsubordinated
creditors, except for obligations mandatorily preferred by law.

	21.17	 	Compliance with ERISA

No Obligor will, without the consent of the Majority Lenders, establish, become party
to or incur any liability under any employee benefit plan of the type referred to in Clause
18.21 (ERISA and Multiemployer Plans).

	 	 	 
	21.18	 	Federal Reserve Regulations
	21.19

	 	Each U.S. Borrower will use the Facilities without violating Regulations T, U and X.

Compliance with U.S. Regulations

No Obligor shall (and the Company shall ensure that no other member of the Group will)
become an “investment company,” or an “affiliated person” of, or “promoter” or “principal
underwriter” for, an “investment company,” as such terms are defined in the 1940 Act.
Neither the making of any Loan, or the application of the proceeds or repayment of any Loan
by any Obligor nor the consummation of the other transactions contemplated by this agreement
will violate any provision of such act or any rule, regulation or order of the SEC under the
1940 Act.

	21.20	 	Anti-Money Laundering

Each Obligor will use commercially reasonable efforts to ensure that no funds used to
pay the obligations under the Finance Documents are derived from any unlawful activity.

	21.21	 	Russian signatories

Each Russian Obligor shall ensure that:

	 	(a)	 	any amendment to or waiver of any provision of any Finance Document; and

	 	(b)	 	any other document or notice executed by it under or in connection with the
Finance Documents that, in the opinion of the Agent, contains financial or credit
obligations of it,

includes the signature of its Chief Accountant.

	22.	 	EVENTS OF DEFAULT

	 	 	 
	22.1

	 	Each of the events or circumstances set out in Clause 22 is an Event of Default.

Non-payment

An Obligor does not pay on the due date any amount payable pursuant to a Finance
Document at the place at and in the currency in which it is expressed to be payable unless:

	 	(a)	 	its failure to pay is caused by administrative or technical error; and

	 	(b)	 	payment is made within five Business Days of its due date.

	 	 	 
	22.2	 	Financial covenants
	22.3

	 	Any requirement of Clause 20 (Financial covenants) is not satisfied.

Other obligations

	 	(a)	 	An Obligor does not comply with any provision of the Finance Documents (other
than those referred to in Clause 22.1 (Non-payment) and Clause 22.2 (Financial
covenants).

	 	(b)	 	No Event of Default under paragraph (a) above will occur if the failure to
comply is capable of remedy and is remedied within twenty one Business Days of the
earlier of the Agent giving notice to the Company or the Company becoming aware of the
failure to comply.

	22.4	 	Misrepresentation

	 	(a)	 	Any representation or statement made or repeated by an Obligor in the Finance
Documents or any other document delivered by or on behalf of any Obligor under or in
connection with any Finance Document is or proves to have been incorrect or misleading
in any material respect when made or repeated.

	 	(b)	 	No Event of Default under paragraph (a) above will occur if the underlying
circumstances are capable of remedy and are remedied within twenty one Business Days of
the earlier of the Agent giving notice to the Company or the Company becoming aware of
the incorrect or misleading representation or statement.

	22.5	 	Cross default

	 	(a)	 	Any Financial Indebtedness of any member of the Group is not paid when due nor
within any originally applicable grace period.

	 	(b)	 	Any Financial Indebtedness of any member of the Group is declared to be or
otherwise becomes due and payable prior to its specified maturity as a result of an
event of default (however described).

	 	(c)	 	Any commitment for any Financial Indebtedness of any member of the Group is
cancelled or suspended by a creditor of any member of the Group as a result of an event
of default (however described).

	 	(d)	 	Any creditor of any member of the Group becomes entitled to declare any
Financial Indebtedness of any member of the Group due and payable prior to its
specified maturity as a result of an event of default (however described) and (if
capable of being remedied) such event has not been waived or remedied within 10
Business Days.

	 	(e)	 	No Event of Default will occur under this Clause 22.5 if the aggregate amount
of Financial Indebtedness or commitment for Financial Indebtedness falling within
paragraphs (a) to (d) above is less than US$15,000,000 (fifteen million dollars) (or
its equivalent in any other currency or currencies).

	22.6	 	Insolvency

	 	(a)	 	A member of the Group is unable or admits inability to pay its debts as they
fall due, suspends making payments on any of its debts or, by reason of actual or
anticipated financial difficulties, commences negotiations with one or more of its
creditors with a view to rescheduling any of its indebtedness.

	 	(b)	 	The value of the assets of any member of the Group is less than its liabilities
(taking into account contingent and prospective liabilities).

	 	(c)	 	A moratorium is declared in respect of any indebtedness of any member of the
Group.

	 	(d)	 	In relation to any member of the Group incorporated under the laws of the
Russian Federation, a Russian Insolvency Test is satisfied.

	 	(e)	 	Any member of the Group in any U.S. jurisdiction:

	 	(i)	 	applies for, or consents to, the appointment of, or the taking of
possession by, a receiver, custodian, trustee, examiner or liquidator of
itself or of all or a substantial part of its property;

	 	(ii)	 	makes a general assignment for the benefit of its creditors;

	 	(iii)	 	commences a voluntary case under Title 11 of the United States of
America Code entitled Bankruptcy (or any successor thereof), as amended;

	 	(iv)	 	files a petition with respect to itself seeking to take advantage of
any other law relating to bankruptcy, insolvency, reorganisation, liquidation,
dissolution, arrangement or winding up, or composition or readjustment of
debts; or

	 	(v)	 	takes any corporate action for the purpose of effecting any of the
foregoing with respect to itself.

	 	(f)	 	Any member of the Group satisfies any legal test entitling or requiring that
entity, a creditor of that entity or any other person to petition or take any other
step for its insolvency under any applicable law.

	22.7	 	Insolvency proceedings

	 	(a)	 	Any corporate action, legal proceedings or other procedure or step is taken in
relation to:

	 	(i)	 	the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of any member of the Group
other than a solvent liquidation or reorganisation of any member of the Group
which is not an Obligor;

	 	(ii)	 	a composition, compromise, assignment or arrangement with any
creditor of any member of the Group; or

	 	(iii)	 	the appointment of a liquidator (other than in respect of a solvent
liquidation of a member of the Group which is not an Obligor), receiver,
administrative receiver, administrator, compulsory manager or other similar
officer in respect of any member of the Group or any of its assets,

or any analogous procedure or step is taken in any jurisdiction.

	 	(b)	 	In respect of any U.S. Obligor or any other member of the Group, a proceeding
or case shall be commenced, without the application or consent of such entity, in any
US court of competent jurisdiction, seeking:

	 	(i)	 	its reorganisation, liquidation, dissolution, arrangement or
winding-up or the composition or readjustment of its debts;

	 	(ii)	 	the appointment of a receiver, custodian, trustee, examiner,
liquidator or the like of the Obligor or of all or any substantial part of its
property; or

	 	(iii)	 	similar relief in respect of any Obligor or any other member of the
Group under any law relating to the bankruptcy insolvency, reorganisation,
winding-up or composition or adjustment of debts,

and any such proceeding or case referred to in paragraphs (i)-(iii) above shall
continue undismissed, or an order, judgment or decree approving or ordering any of
the foregoing shall be entered and continue unstayed and in effect, for a period of
21 or more days, or an order for relief against such entity shall be entered in an
involuntary case under Title 11 of the United States of America Code entitled
Bankruptcy (or any successor thereto) as amended.

	 	(c)	 	In respect of any Russian Obligor or any other member of the Group incorporated
under the laws of the Russian Federation, any Russian Insolvency Proceeding has
occurred and (only in the case of proceedings described in (a), (where the presentation
or filing of a petition is made by a third party) (c), (f) and (g) and of the
definition “Russian Insolvency Proceedings”) has continued undismissed for a period of
30 or more days.

	22.8	 	Creditors’ process

Any enforcement of any Security, expropriation, attachment, sequestration, distress or
execution affects any asset or assets of any member of the Group having an aggregate value
of more than US$ 5,000,000 (five million dollars) and is not discharged within thirty days.

	22.9	 	Analogous Proceedings

Any event occurs which under the laws of any relevant jurisdiction has a similar or
analogous effect to any of those mentioned in Clause 22.6 (Insolvency), 22.7 (Insolvency
Proceedings) and 22.8 (Creditor’s Process).

	22.10	 	Ownership of the Obligors

An Obligor (other than the Company) is not or ceases to be a wholly-owned Subsidiary of
the Company.

	22.11	 	Corporate Reorganisation

Any Obligor:

	 	(a)	 	undertakes any corporate or constitutive reorganisation, arrangement or
restructuring or, in relation to any Russian Obligor, a Russian Corporate
Reorganisation; or

	 	(b)	 	amends its constitutional documents; or

	 	(c)	 	changes or procures a change in its capital structure (including the issue of
new shares, the division of existing shares or an alteration in the rights attaching to
the shares),

in each case in a manner or to an extent which might reasonably be expected to have a
Material Adverse Effect.

	22.12	 	Unlawfulness

It is or becomes unlawful for an Obligor to perform any of its obligations under the
Finance Documents.

	22.13	 	Repudiation

An Obligor repudiates or rescinds a Finance Document or evidences an intention to
repudiate or rescind a Finance Document.

	22.14	 	Convertibility/transferability

	 	(a)	 	Any foreign exchange law is enacted or introduced in Russia that (in the
opinion of the Majority Lenders) will have the effect for any Russian Obligor such that
it would not to be able to make any payment on its due date pursuant to the terms of
any of the Finance Documents.

	 	(b)	 	A moratorium is called:

	 	(i)	 	 on the payment of interest or repayment of principal on external
indebtedness (being any indebtedness that is or may become payable in a
currency other than roubles and/or that is owed to a creditor resident outside
the Russian Federation) of Russian borrowers generally or a class thereof to
which any Russian Obligor belongs; or

	 	(ii)	 	on payments under guarantees of or pursuant to enforcement of
Security for such external indebtedness by Russian entities generally or a
class thereof to which any Russian Obligor belongs,

and such moratorium, in the opinion of the Majority Lenders, might reasonably
expected to have a Material Adverse Effect.

	 	(c)	 	Any action, event or circumstance occurs or might reasonably be expected to
occur that (in the opinion of the Majority Lenders, acting reasonably):

	 	(i)	 	has the effect of materially hindering, limiting or restricting:

	 	(A)	 	the convertibility of roubles into dollars or any other
international currency for the purpose of servicing Financial
Indebtedness; or

	 	(B)	 	the transfer of dollars or any other currency (other than
roubles) from the Russian Federation to other countries (including,
without limitation, by way of any delays or discriminatory rates of
exchange) for the purposes of servicing Financial Indebtedness; or

	 	(d)	 	results in the unavailability of dollars or any other international currency
(for the purpose of servicing Financial Indebtedness) in the interbank foreign exchange
market located in the Russian Federation in accordance with normal commercial practice
existing as at the date of this Agreement.

	22.15	 	Political and economic risk

A deterioration occurs in the political or economic situation generally in Russia, or
an act of war or hostilities, invasion, armed conflict or act of foreign enemy, revolution,
insurrection, insurgency occurs in or involving Russia, unless (in any such case), the
Obligors can establish to the continuing reasonable satisfaction of the Majority Lenders
that this does not and will not have a Material Adverse Effect.

	22.16	 	Audit Qualification

The auditors of any Obligor qualify in any material respect the audited annual
consolidated financial statements of the Reporting Group, in respect of the Company, or the
financial statements of any Obligor, in respect of any Obligor other than the Company, so as
to cast doubt on their accuracy, or on the viability of the relevant company to continue as
a going concern or otherwise in a manner which the Majority Lenders reasonably believe might
reasonably be expected to have a Material Adverse Effect.

	22.17	 	Material adverse change

Any event or circumstance occurs which the Majority Lenders reasonably believe might
reasonably be expected to have a Material Adverse Effect.

	22.18	 	Litigation

Any litigation, arbitration or administrative proceeding is commenced or pending
against any Obligor which, if adversely determined, the Majority Lenders reasonably believe
might reasonably be expected to have a Material Adverse Effect.

	22.19	 	Failure to comply with Final Judgment

	 	(a)	 	Any Obligor or any member of the Group fails to comply with or pay any sum due
from it or them under any judgement (the effect of which cannot be suspended by the
exercise of any right of appeal) or any final judgment or any final order made or given
by any court or arbitral body of competent jurisdiction when such sums exceed
US$5,000,000 (five million dollars) (or its equivalent) in aggregate at any time.

	 	(b)	 	Any judgement or order, made or given by any court of competent jurisdiction,
which gives rise to a payment obligation in an amount exceeding US$25,000,000 (twenty
five million dollars) (unless the obligation to make such payment can be suspended and
is suspended by the exercise of a right of appeal), enters into force against any
Obligor or any member of the Group and is not immediately stayed by further order of
the court.

	22.20	 	Acceleration

On and at any time after the occurrence of an Event of Default which is continuing the
Agent may, and shall if so directed by the Majority Lenders, by notice to the Company:

	 	(a)	 	cancel the Total Commitments whereupon they shall immediately be cancelled;

	 	(b)	 	declare that all or part of the Loans, together with accrued interest, and all
other amounts accrued or outstanding under the Finance Documents be immediately due and
payable, whereupon they shall become immediately due and payable; and/or

	 	(c)	 	declare that all or part of the Loans be payable on demand, whereupon they
shall immediately become payable on demand by the Agent on the instructions of the
Majority Lenders,

but, notwithstanding the foregoing, upon the occurrence of an Event of Default specified in
Clause 22.6 (Insolvency) and Clause 22.7 (Insolvency proceedings), then without notice to
such Obligor or any other act by the Agent or any other person, the Loans to such Obligor,
interest thereon and all other amounts owed by such Obligor under the Finance Documents
shall become immediately due and payable without presentment, demand, protest or notice of
any kind, all of which are expressly waived.

9

SECTION 9

CHANGES TO PARTIES

	23.	 	CHANGES TO THE LENDERS

	23.1	 	Assignments and transfers by the Lenders

Subject to this Clause 23, a Lender (the “Existing Lender”) may:

	 	(a)	 	assign any of its rights; or

	 	(b)	 	transfer by novation any of its rights and obligations,

to another bank or financial institution or to a trust, fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or investing in
loans, securities or other financial assets (the “New Lender”).

	23.2	 	Conditions of assignment or transfer

	 	(a)	 	The consent of the Company is required for an assignment or transfer by a
Lender, unless (i) assignment or transfer is to another Lender or an Affiliate of a
Lender or (ii) an Event of Default is continuing.

	 	(b)	 	The consent of the Company to an assignment or transfer must not be
unreasonably withheld or delayed. The Company will be deemed to have given its consent
five Business Days after the Lender has requested it unless consent is expressly
refused by the Company within that time.

	 	(c)	 	The consent of the Company to an assignment or transfer must not be withheld
solely because the assignment or transfer may result in an increase to the Mandatory
Cost.

	 	(d)	 	An assignment will only be effective on:

	 	(i)	 	receipt by the Agent of written confirmation from the New Lender (in
form and substance satisfactory to the Agent) that the New Lender will assume
the same obligations to the other Finance Parties as it would have been under
if it was an Original Lender; and

	 	(ii)	 	performance by the Agent of all necessary “know your customer” or
other similar checks under all applicable laws and regulations in relation to
such assignment to a New Lender, the completion of which the Agent shall
promptly notify to the Existing Lender and the New Lender.

	 	(e)	 	A transfer will only be effective if the procedure set out in Clause 23.5
(Procedure for transfer) is complied with.

	 	(f)	 	If:

	 	(i)	 	a Lender assigns or transfers any of its rights or obligations under
the Finance Documents or changes its Facility Office; and

	 	(ii)	 	as a result of circumstances existing at the date the assignment,
transfer or change occurs, an Obligor would be obliged to make a payment to
the New Lender or Lender acting through its new Facility Office under Clause
12 (Tax gross-up and indemnities) or Clause 13 (Increased costs),

then the New Lender or Lender acting through its new Facility Office is only
entitled to receive payment under those Clauses to the same extent as the Existing
Lender or Lender acting through its previous Facility Office would have been if the
assignment, transfer or change had not occurred.

	23.3	 	Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect,
pay to the Agent (for its own account) a fee of US$2,500 (two thousands five hundred
dollars), except if the New Lender is an Affiliate of the Existing Lender.

	23.4	 	Limitation of responsibility of Existing Lenders

	 	(a)	 	Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for:

	 	(i)	 	the legality, validity, effectiveness, adequacy or enforceability of
the Finance Documents or any other documents;

	 	(ii)	 	the financial condition of any Obligor;

	 	(iii)	 	the performance and observance by any Obligor of its obligations
under the Finance Documents or any other documents; or

	 	(iv)	 	the accuracy of any statements (whether written or oral) made in or
in connection with any Finance Document or any other document,

and any representations or warranties implied by law are excluded.

	 	(b)	 	Each New Lender confirms to the Existing Lender and the other Finance Parties
that it:

	 	(i)	 	has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs of each
Obligor and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by
the Existing Lender in connection with any Finance Document; and

	 	(ii)	 	will continue to make its own independent appraisal of the
creditworthiness of each Obligor and its related entities whilst any amount is
or may be outstanding under the Finance Documents or any Commitment is in
force.

	 	(c)	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(i)	 	accept a re-transfer from a New Lender of any of the rights and
obligations assigned or transferred under this Clause 23; or

	 	(ii)	 	support any losses directly or indirectly incurred by the New Lender
by reason of the non-performance by any Obligor of its obligations under the
Finance Documents or otherwise.

	23.5	 	Procedure for transfer

	 	(a)	 	Subject to the conditions set out in Clause 23.2 (Conditions of assignment or
transfer) a transfer is effected in accordance with paragraph (c) below when the Agent
executes an otherwise duly completed Transfer Certificate delivered to it by the
Existing Lender and the New Lender and the Agent makes a corresponding entry in the
Register pursuant to Clause 23.9 (The Register). The Agent shall subject to paragraph
(b) below, as soon as reasonably practicable after receipt by it of a duly completed
Transfer Certificate appearing on its face to comply with the terms of this Agreement
and delivered in accordance with the terms of this Agreement, execute that Transfer
Certificate and make such corresponding entry in the Register.

	 	(b)	 	The Agent shall only be obliged to execute a Transfer Certificate delivered to
it by the Existing Lender and the New Lender and make such corresponding entry in the
Register once it is satisfied it has complied with all necessary “know your customer”
or other similar checks under all applicable laws and regulations in relation to the
transfer to such New Lender.

	 	(c)	 	On the Transfer Date:

	 	(i)	 	to the extent that in the Transfer Certificate the Existing Lender
seeks to transfer by novation its rights and obligations under the Finance
Documents each of the Obligors and the Existing Lender shall be released from
further obligations towards one another under the Finance Documents and their
respective rights against one another under the Finance Documents shall be
cancelled (being the “Discharged Rights and Obligations”);

	 	(ii)	 	each of the Obligors and the New Lender shall assume obligations
towards one another and/or acquire rights against one another which differ
from the Discharged Rights and Obligations only insofar as that Obligor and
the New Lender have assumed and/or acquired the same in place of that Obligor
and the Existing Lender;

	 	(iii)	 	the Agent, the Arranger, the New Lender and other Lenders shall
acquire the same rights and assume the same obligations between themselves as
they would have acquired and assumed had the New Lender been an Original
Lender with the rights and/or obligations acquired or assumed by it as a
result of the transfer and to that extent the Agent, the Arranger and the
Existing Lender shall each be released from further obligations to each other
under the Finance Documents; and

	 	(iv)	 	the New Lender shall become a Party as a “Lender”.

	23.6	 	Copy of Transfer Certificate to Company

The Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Company a copy of that Transfer Certificate.

	23.7	 	Disclosure of information

Any Lender may disclose to any of its Affiliates and any other person:

	 	(a)	 	to (or through) whom that Lender assigns or transfers (or may potentially
assign or transfer) all or any of its rights and obligations under this Agreement;

	 	(b)	 	with (or through) whom that Lender enters into (or may potentially enter into)
any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or any Obligor; or

	 	(c)	 	to whom, and to the extent that, information is required to be disclosed by any
applicable law or regulation,

any information about any Obligor, the Group and the Finance Documents as that Lender shall
consider appropriate if, in relation to paragraphs (a) and (b) above, the person to whom the
information is to be given has entered into a Confidentiality Undertaking.

	23.8	 	Assignment to Federal Reserve Bank

Any Lender may at any time pledge or assign a security interest in all or any portion
of its rights under this Agreement, without notice to or consent of any Party, to any U.S.
Federal Reserve Bank provided that (i) no Lender shall be relieved of any of its obligations
under this Agreement as a result of any such assignment and pledge and (ii) in no event
shall such U.S. Federal Reserve Bank be considered to be a “Lender” or be entitled to
require the assigning Lender to take or omit to take any action under this Agreement.

	23.9	 	The Register

For U.S. federal income tax purposes only, the Agent, acting solely for this purpose as
an agent of the Obligors, shall maintain at one of its offices a copy of each Transfer
Certificate delivered to it and a register (the “Register”) for the recordation of the names
and addresses of each Lender and the Commitments of and obligations owing to each Lender.
Without limitation of any other provision of this Clause 23 (Changes to the Lenders), no
transfer shall be effective until recorded in the Register. The entries in the Register
shall be conclusive absent manifest error and each Obligor, the Agent and each Lender may
treat each person whose name is recorded in the Register as a Lender notwithstanding any
notice to the contrary. The Register shall be available for inspection by each Obligor at
any reasonable time and from time to time upon reasonable prior notice.

	24.	 	CHANGES TO THE OBLIGORS

	24.1	 	Assignments and transfers by Obligors

No Obligor may assign any of its rights or transfer any of its rights or obligations
under the Finance Documents.

	24.2	 	Additional Borrowers

	 	(a)	 	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause
19.7 (“Know your customer” checks), the Company may request that any of its wholly
owned Subsidiaries becomes an Additional Borrower. That Subsidiary shall become an
Additional Borrower if:

	 	(i)	 	all the Lenders approve the addition of that Subsidiary;

	 	(ii)	 	the Company delivers to the Agent a duly completed and executed
Accession Letter;

	 	(iii)	 	the Company confirms that no Default is continuing or would occur as
a result of that Subsidiary becoming an Additional Borrower; and

	 	(iv)	 	the Agent has received all of the documents and other evidence listed
in Part II of Schedule 2 (Conditions precedent) in relation to that Additional
Borrower, each in form and substance satisfactory to the Agent.

	 	(b)	 	The Agent shall notify the Company and the Lenders promptly upon being
satisfied that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in Part II of Schedule 2 (Conditions precedent).

	24.3	 	Resignation of a Borrower

	 	(a)	 	The Company may request that a Borrower (other than the Company) ceases to be a
Borrower by delivering to the Agent a Resignation Letter.

	 	(b)	 	The Agent shall accept a Resignation Letter and notify the Company and the
Lenders of its acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of the
Resignation Letter (and the Company has confirmed this is the case); and

	 	(ii)	 	the Borrower is under no actual or contingent obligations as a
Borrower under any Finance Documents,

whereupon that company shall cease to be a Borrower and shall have no further rights or
obligations under the Finance Documents.

It being specified, for the avoidance of doubt, that if a company ceases to be a Borrower in
accordance with this Clause 24.3, it will remain a Guarantor under this Agreement unless it
has ceased to be a Guarantor in accordance with the terms of Clause 24.6 (Resignation of a
Guarantor).

	24.4	 	Additional Guarantors

	 	(a)	 	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause
19.7 (“Know your customer” checks), the Company may request that any of its wholly
owned Subsidiaries become an Additional Guarantor. That Subsidiary shall become an
Additional Guarantor if:

	 	(i)	 	the Company delivers to the Agent a duly completed and executed
Accession Letter; and

	 	(ii)	 	the Agent has received all of the documents and other evidence listed
in Part II of Schedule 2 (Conditions precedent) in relation to that Additional
Guarantor, each in form and substance satisfactory to the Agent.

	 	(b)	 	The Agent shall notify the Company and the Lenders promptly upon being
satisfied that it has received (in form and substance satisfactory to it) all the
documents and other evidence listed in Part II of Schedule 2 (Conditions precedent).

	24.5	 	Repetition of Representations

Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary
that the Repeating Representations are true and correct in all material respects in relation
to it as at the date of delivery as if made by reference to the facts and circumstances then
existing.

	24.6	 	Resignation of a Guarantor

	 	(a)	 	The Company may request that a Guarantor (other than the Company) ceases to be
a Guarantor by delivering to the Agent a Resignation Letter.

	 	(b)	 	The Agent shall accept a Resignation Letter and notify the Company and the
Lenders of its acceptance if:

	 	(i)	 	no Default is continuing or would result from the acceptance of the
Resignation Letter (and the Company has confirmed this is the case); and

	 	(ii)	 	all the Lenders have consented to the Company’s request.

10

SECTION 10

THE FINANCE PARTIES

	25.	 	ROLE OF THE AGENT AND THE ARRANGER

	25.1	 	Appointment of the Agent

	 	(a)	 	Each other Finance Party appoints the Agent to act as its agent under and in
connection with the Finance Documents.

	 	(b)	 	Each other Finance Party authorises the Agent to exercise the rights, powers,
authorities and discretions specifically given to the Agent under or in connection with
the Finance Documents together with any other incidental rights, powers, authorities
and discretions.

	25.2	 	Duties of the Agent

	 	(a)	 	The Agent shall promptly forward to a Party the original or a copy of any
document which is delivered to the Agent for that Party by any other Party.

	 	(b)	 	Except where a Finance Document specifically provides otherwise, the Agent is
not obliged to review or check the adequacy, accuracy or completeness of any document
it forwards to another Party.

	 	(c)	 	If the Agent receives notice from a Party referring to this Agreement,
describing a Default and stating that the circumstance described is a Default, it shall
promptly notify the other Finance Parties.

	 	(d)	 	If the Agent is aware of the non-payment of any principal, interest, commitment
fee or other fee payable to a Finance Party (other than the Agent or the Arranger)
under this Agreement it shall promptly notify the other Finance Parties.

	 	(e)	 	The Agent’s duties under the Finance Documents are solely mechanical and
administrative in nature.

	25.3	 	Role of the Arranger

Except as specifically provided in the Finance Documents, the Arranger has no
obligations of any kind to any other Party under or in connection with any Finance Document.

	25.4	 	No fiduciary duties

	 	(a)	 	Nothing in this Agreement constitutes the Agent or the Arranger as a trustee or
fiduciary of any other person.

	 	(b)	 	Neither the Agent nor the Arranger shall be bound to account to any Lender for
any sum or the profit element of any sum received by it for its own account.

	25.5	 	Business with the Group

The Agent and the Arranger may accept deposits from, lend money to and generally engage
in any kind of banking or other business with any member of the Group.

	25.6	 	Rights and discretions of the Agent

	 	(a)	 	The Agent may rely on:

	 	(i)	 	any representation, notice or document believed by it to be genuine,
correct and appropriately authorised; and

	 	(ii)	 	any statement made by a director, authorised signatory or employee of
any person regarding any matters which may reasonably be assumed to be within
his knowledge or within his power to verify.

	 	(b)	 	The Agent may assume (unless it has received notice to the contrary in its
capacity as agent for the Lenders) that:

	 	(i)	 	no Default has occurred (unless it has actual knowledge of a Default
arising under Clause 22.1 (Non-payment));

	 	(ii)	 	any right, power, authority or discretion vested in any Party or the
Majority Lenders has not been exercised; and

	 	(iii)	 	any notice or request made by the Company (other than a Utilisation
Request) is made on behalf of and with the consent and knowledge of all the
Obligors.

	 	(c)	 	The Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.

	 	(d)	 	The Agent may act in relation to the Finance Documents through its personnel
and agents.

	 	(e)	 	The Agent may disclose to any other Party any information it reasonably
believes it has received as agent under this Agreement.

	 	(f)	 	Notwithstanding any other provision of any Finance Document to the contrary,
neither the Agent nor the Arranger is obliged to do or omit to do anything if it would
or might in its reasonable opinion constitute a breach of any law or regulation or a
breach of a fiduciary duty or duty of confidentiality.

	25.7	 	Majority Lenders’ instructions

	 	(a)	 	Unless a contrary indication appears in a Finance Document, the Agent shall (i)
exercise any right, power, authority or discretion vested in it as Agent in accordance
with any instructions given to it by the Majority Lenders (or, if so instructed by the
Majority Lenders, refrain from exercising any right, power, authority or discretion
vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or
refrains from taking any action) in accordance with an instruction of the Majority
Lenders.

	 	(b)	 	Unless a contrary indication appears in a Finance Document, any instructions
given by the Majority Lenders will be binding on all the Finance Parties.

	 	(c)	 	The Agent may refrain from acting in accordance with the instructions of the
Majority Lenders (or, if appropriate, the Lenders) until it has received such security
as it may require for any cost, loss or liability (together with any associated VAT)
which it may incur in complying with the instructions.

	 	(d)	 	In the absence of instructions from the Majority Lenders, (or, if appropriate,
the Lenders) the Agent may act (or refrain from taking action) as it considers to be in
the best interest of the Lenders.

	 	(e)	 	The Agent is not authorised to act on behalf of a Lender (without first
obtaining that Lender’s consent) in any legal or arbitration proceedings relating to
any Finance Document.

	25.8	 	Responsibility for documentation

Neither the Agent nor the Arranger:

	 	(a)	 	is responsible for the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by the Agent, the Arranger, an Obligor
or any other person given in or in connection with any Finance Document or the
Information Memorandum; or

	 	(b)	 	is responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance
Document.

	25.9	 	Exclusion of liability

	 	(a)	 	Without limiting paragraph (b) below, the Agent will not be liable for any
action taken by it under or in connection with any Finance Document, unless directly
caused by its gross negligence or wilful misconduct.

	 	(b)	 	No Party (other than the Agent) may take any proceedings against any officer,
employee or agent of the Agent in respect of any claim it might have against the Agent
or in respect of any act or omission of any kind by that officer, employee or agent in
relation to any Finance Document and any officer, employee or agent of the Agent may
rely on this Clause subject to Clause 1.4 (Third Party Rights) and the provisions of
the Third Parties Act.

	 	(c)	 	The Agent will not be liable for any delay (or any related consequences) in
crediting an account with an amount required under the Finance Documents to be paid by
the Agent if the Agent has taken all necessary steps as soon as reasonably practicable
to comply with the regulations or operating procedures of any recognised clearing or
settlement system used by the Agent for that purpose.

	 	(d)	 	Nothing in this Agreement shall oblige the Agent or the Arranger to carry out
any “know your customer” or other checks in relation to any person on behalf of any
Lender and each Lender confirms to the Agent and the Arranger that it is solely
responsible for any such checks it is required to carry out and that it may not rely on
any statement in relation to such checks made by the Agent or the Arranger.

	25.10	 	Lenders’ indemnity to the Agent

Each Lender shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately prior to their
reduction to zero) indemnify the Agent, within three Business Days of demand, against any
cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent’s gross
negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the
Agent has been reimbursed by an Obligor pursuant to a Finance Document).

	25.11	 	Resignation of the Agent

	 	(a)	 	The Agent may resign and appoint one of its Affiliates acting through an office
in the United Kingdom as successor by giving notice to the other Finance Parties and
the Company.

	 	(b)	 	Alternatively the Agent may resign by giving notice to the other Finance
Parties and the Company, in which case the Majority Lenders (after agreement with the
Company acting reasonably) may appoint a successor Agent acting through an office in
the United Kingdom.

	 	(c)	 	If the Majority Lenders have not appointed a successor Agent in accordance with
paragraph (b) above within 30 days after notice of resignation was given, the Agent
(after agreement with the Company, acting reasonably) may appoint a successor Agent
(acting through an office in the United Kingdom).

	 	(d)	 	The retiring Agent shall, at its own cost, make available to the successor
Agent such documents and records and provide such assistance as the successor Agent may
reasonably request for the purposes of performing its functions as Agent under the
Finance Documents.

	 	(e)	 	The Agent’s resignation notice shall only take effect upon the appointment of a
successor.

	 	(f)	 	Upon the appointment of a successor, the retiring Agent shall be discharged
from any further obligation in respect of the Finance Documents but shall remain
entitled to the benefit of this Clause 25. Its successor and each of the other Parties
shall have the same rights and obligations amongst themselves as they would have had if
such successor had been an original Party.

	 	(g)	 	After consultation with the Company, the Majority Lenders may, by notice to the
Agent, require it to resign in accordance with paragraph (b) above. In this event, the
Agent shall resign in accordance with paragraph (b) above.

	25.12	 	Confidentiality

	 	(a)	 	In acting as agent for the Finance Parties, the Agent shall be regarded as
acting through its agency division which shall be treated as a separate entity from any
other of its divisions or departments.

	 	(b)	 	If information is received by another division or department of the Agent, it
may be treated as confidential to that division or department and the Agent shall not
be deemed to have notice of it.

	25.13	 	Relationship with the Lenders

	 	(a)	 	The Agent may treat each Lender as a Lender, entitled to payments under this
Agreement and acting through its Facility Office unless it has received not less than
five Business Days prior notice from that Lender to the contrary in accordance with the
terms of this Agreement.

	 	(b)	 	Each Lender shall supply the Agent with any information required by the Agent
in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost
formulae).

	25.14	 	Credit appraisal by the Lenders

Without affecting the responsibility of any Obligor for information supplied by it or
on its behalf in connection with any Finance Document, each Lender confirms to the Agent and
the Arranger that it has been, and will continue to be, solely responsible for making its
own independent appraisal and investigation of all risks arising under or in connection with
any Finance Document including but not limited to:

	 	(a)	 	the financial condition, status and nature of each member of the Group;

	 	(b)	 	the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document and any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document;

	 	(c)	 	whether that Lender has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document; and

	 	(d)	 	the adequacy, accuracy and/or completeness of the Information Memorandum and
any other information provided by the Agent, any Party or by any other person under or
in connection with any Finance Document, the transactions contemplated by the Finance
Documents or any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document.

	25.15	 	Reference Banks

If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is
an Affiliate) ceases to be a Lender, the Agent shall (in consultation with the Company)
appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

	25.16	 	Agent’s Management Time

Any amount payable to the Agent under Clause 14.3 (Indemnity to the Agent), Clause 16
(Costs and expenses) and Clause 25.10 (Lenders’ indemnity to the Agent) shall include the
cost of utilising the Agent’s management time or other resources and will be calculated on
the basis of such reasonable daily or hourly rates as the Agent may notify to the Company
and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 11
(Fees).

	25.17	 	Deduction from amounts payable by the Agent

If any Party owes an amount to the Agent under the Finance Documents the Agent may,
after giving notice to that Party, deduct an amount not exceeding that amount from any
payment to that Party which the Agent would otherwise be obliged to make under the Finance
Documents and apply the amount deducted in or towards satisfaction of the amount owed. For
the purposes of the Finance Documents that Party shall be regarded as having received any
amount so deducted.

	26.	 	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:

	 	(a)	 	interfere with the right of any Finance Party to arrange its affairs (tax or
otherwise) in whatever manner it thinks fit;

	 	(b)	 	oblige any Finance Party to investigate or claim any credit, relief, remission
or repayment available to it or the extent, order and manner of any claim; or

	 	(c)	 	oblige any Finance Party to disclose any information relating to its affairs
(tax or otherwise) or any computations in respect of Tax.

	27.	 	SHARING AMONG THE FINANCE PARTIES

	27.1	 	Payments to Finance Parties

If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from
an Obligor other than in accordance with Clause 28 (Payment mechanics) and applies that
amount to a payment due under the Finance Documents then:

	 	(a)	 	the Recovering Finance Party shall, within three Business Days, notify details
of the receipt or recovery, to the Agent;

	 	(b)	 	the Agent shall determine whether the receipt or recovery is in excess of the
amount the Recovering Finance Party would have been paid had the receipt or recovery
been received or made by the Agent and distributed in accordance with Clause 28
(Payment mechanics), without taking account of any Tax which would be imposed on the
Agent in relation to the receipt, recovery or distribution; and

	 	(c)	 	the Recovering Finance Party shall, within three Business Days of demand by the
Agent, pay to the Agent an amount (the “Sharing Payment”) equal to such receipt or
recovery less any amount which the Agent determines may be retained by the Recovering
Finance Party as its share of any payment to be made, in accordance with Clause 28.5
(Partial payments).

	27.2	 	Redistribution of payments

The Agent shall treat the Sharing Payment as if it had been paid by the relevant
Obligor and distribute it between the Finance Parties (other than the Recovering Finance
Party) in accordance with Clause 28.5 (Partial payments).

	27.3	 	Recovering Finance Party’s rights

	 	(a)	 	On a distribution by the Agent under Clause 27.2 (Redistribution of payments),
the Recovering Finance Party will be subrogated to the rights of the Finance Parties
which have shared in the redistribution.

	 	(b)	 	If and to the extent that the Recovering Finance Party is not able to rely on
its rights under paragraph (a) above, the relevant Obligor shall be liable to the
Recovering Finance Party for a debt equal to the Sharing Payment which is immediately
due and payable.

	27.4	 	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party
becomes repayable and is repaid by that Recovering Finance Party, then:

	 	(a)	 	each Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 27.2 (Redistribution of payments) shall, upon request of the Agent,
pay to the Agent for account of that Recovering Finance Party an amount equal to the
appropriate part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Finance Party for its proportion of any interest
on the Sharing Payment which that Recovering Finance Party is required to pay); and

	 	(b)	 	that Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

	27.5	 	Exceptions

	 	(a)	 	This Clause 27 shall not apply to the extent that the Recovering Finance Party
would not, after making any payment pursuant to this Clause, have a valid and
enforceable claim against the relevant Obligor.

	 	(b)	 	A Recovering Finance Party is not obliged to share with any other Finance Party
any amount which the Recovering Finance Party has received or recovered as a result of
taking legal or arbitration proceedings, if:

	 	(i)	 	it notified that other Finance Party of the legal or arbitration
proceedings; and

	 	(ii)	 	that other Finance Party had an opportunity to participate in those
legal or arbitration proceedings but did not do so as soon as reasonably
practicable having received notice and did not take separate legal or
arbitration proceedings.

11

SECTION 11

ADMINISTRATION

	28.	 	PAYMENT MECHANICS

	28.1	 	Payments to the Agent

	 	(a)	 	Subject to the Agent giving appropriate instructions under paragraph (b) below,
on each date on which an Obligor or a Lender is required to make a payment under a
Finance Document, that Obligor or Lender shall make the same available to the Agent
(unless a contrary indication appears in a Finance Document) for value on the due date
at the time and in such funds specified by the Agent as being customary at the time for
settlement of transactions in the relevant currency in the place of payment.

	 	(b)	 	Payment shall be made to such account in the principal financial centre of the
country of that currency with such bank as the Agent specifies.

	28.2	 	Distributions by the Agent

Each payment received by the Agent under the Finance Documents for another Party shall,
subject to Clause 28.3 (Distributions to an Obligor), Clause 28.4 (Clawback) and Clause
25.17 (Deductions from amounts payable by the Agent) be made available by the Agent as soon
as practicable after receipt to the Party entitled to receive payment in accordance with
this Agreement (in the case of a Lender, for the account of its Facility Office), to such
account as that Party may notify to the Agent by not less than five Business Days’ notice
with a bank in the principal financial centre of the country of that currency (or, in
relation to euro, in the principal financial centre of a Participating Member State or
London).

	28.3	 	Distributions to an Obligor

The Agent may (with the consent of the Obligor or in accordance with Clause 29
(Set-off)) apply any amount received by it for that Obligor in or towards payment (on the
date and in the currency and funds of receipt) of any amount due from that Obligor under the
Finance Documents or in or towards purchase of any amount of any currency to be so applied.

	28.4	 	Clawback

	 	(a)	 	Where a sum is to be paid to the Agent under the Finance Documents for another
Party, the Agent is not obliged to pay that sum to that other Party (or to enter into
or perform any related exchange contract) until it has been able to establish to its
satisfaction that it has actually received that sum.

	 	(b)	 	If the Agent pays an amount to another Party and it proves to be the case that
the Agent had not actually received that amount, then the Party to whom that amount (or
the proceeds of any related exchange contract) was paid by the Agent shall on demand
refund the same to the Agent together with interest on that amount from the date of
payment to the date of receipt by the Agent, calculated by the Agent to reflect its
cost of funds.

	28.5	 	Partial payments

	 	(a)	 	If the Agent receives a payment that is insufficient to discharge all the
amounts then due and payable by an Obligor under the Finance Documents, the Agent shall
apply that payment towards the obligations of that Obligor under the Finance Documents
in the following order:

	 	(i)	 	first, in or towards payment pro rata of any unpaid fees, costs and
expenses of the Agent and the Arranger under the Finance Documents;

	 	(ii)	 	secondly, in or towards payment pro rata of any accrued interest, fee
or commission due but unpaid under this Agreement;

	 	(iii)	 	thirdly, in or towards payment pro rata of any principal due but
unpaid under this Agreement; and

	 	(iv)	 	fourthly, in or towards payment pro rata of any other sum due but
unpaid under the Finance Documents.

	 	(b)	 	The Agent shall, if so directed by the Majority Lenders, vary the order set out
in paragraphs (a)(ii) to (iv) above.

	 	(c)	 	Paragraphs (a) and (b) above will override any appropriation made by an
Obligor.

	28.6	 	No set-off by Obligors

All payments to be made by an Obligor under the Finance Documents shall be calculated
and be made without (and free and clear of any deduction for) set-off or counterclaim.

	28.7	 	Business Days

	 	(a)	 	Any payment which is due to be made on a day that is not a Business Day shall
be made on the next Business Day in the same calendar month (if there is one) or the
preceding Business Day (if there is not).

	 	(b)	 	During any extension of the due date for payment of any principal or Unpaid Sum
under this Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date.

	28.8	 	Currency of account

	 	(a)	 	Subject to paragraphs (b) to (c) below, US dollars is the currency of account
and payment for any sum due from an Obligor under any Finance Document.

	 	(b)	 	Each payment in respect of costs, expenses or Taxes shall be made in the
currency in which the costs, expenses or Taxes are incurred.

	 	(c)	 	Any amount expressed to be payable in a currency other than US dollars shall be
paid in that other currency.

	28.9	 	Change of currency

	 	(a)	 	Unless otherwise prohibited by law, if more than one currency or currency unit
are at the same time recognised by the central bank of any country as the lawful
currency of that country, then:

	 	(i)	 	any reference in the Finance Documents to, and any obligations arising
under the Finance Documents in, the currency of that country shall be
translated into, or paid in, the currency or currency unit of that country
designated by the Agent (after consultation with the Company); and

	 	(ii)	 	any translation from one currency or currency unit to another shall
be at the official rate of exchange recognised by the central bank for the
conversion of that currency or currency unit into the other, rounded up or
down by the Agent (acting reasonably).

	 	(b)	 	If a change in any currency of a country occurs, this Agreement will, to the
extent the Agent (acting reasonably and after consultation with the Company) specifies
to be necessary, be amended to comply with any generally accepted conventions and
market practice in the Relevant Interbank Market and otherwise to reflect the change in
currency.

	29.	 	SET-OFF

Whilst an Event of Default is continuing, a Finance Party may set off any matured
obligation due from an Obligor under the Finance Documents (to the extent beneficially owned
by that Finance Party) against any matured obligation owed by that Finance Party to that
Obligor, regardless of the place of payment, booking branch or currency of either
obligation. If the obligations are in different currencies, the Finance Party may convert
either obligation at a market rate of exchange in its usual course of business for the
purpose of the set-off. The Finance Party shall give the Obligor written notice of any such
set off.

	30.	 	NOTICES

	30.1	 	Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be
made in writing and, unless otherwise stated, may be made by fax or letter.

	30.2	 	Addresses

The address and fax number (and the department or officer, if any, for whose attention
the communication is to be made) of each Party for any communication or document to be made
or delivered under or in connection with the Finance Documents is:

	 	(a)	 	in the case of the Company, that identified with its name below;

	 	(b)	 	in the case of each Lender or any other Original Obligor, that notified in
writing to the Agent on or prior to the date on which it becomes a Party; and

	 	(c)	 	in the case of the Agent, that identified with its name below,

or any substitute address or fax number or department or officer as the Party may notify to
the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent)
by not less than five Business Days’ notice.

	30.3	 	Delivery

	 	(a)	 	Any communication or document made or delivered by one person to another under
or in connection with the Finance Documents will only be effective:

	 	(i)	 	if by way of fax, when received in legible form and the successful
receipt is confirmed by the fax machine report; or

	 	(ii)	 	if by way of letter, when it has been left at the relevant address or
five Business Days after being deposited in the post postage prepaid in an
envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address
details provided under Clause 30.2 (Addresses), if addressed to that department or
officer.

	 	(b)	 	Any communication or document to be made or delivered to the Agent will be
effective only when actually received by the Agent and then only if it is expressly
marked for the attention of the department or officer identified with the Agent’s
signature below (or any substitute department or officer as the Agent shall specify for
this purpose).

	 	(c)	 	All notices from or to an Obligor shall be sent through the Agent.

	 	(d)	 	Any communication or document made or delivered to the Company in accordance
with this Clause will be deemed to have been made or delivered to each of the Obligors.

	30.4	 	Notification of address and fax number

Promptly upon receipt of notification of an address and fax number or change of address
or fax number pursuant to Clause 30.2 (Addresses) or changing its own address or fax number,
the Agent shall notify the other Parties.

	30.5	 	Electronic communication

	 	(a)	 	Any communication to be made between the Agent and a Lender under or in
connection with the Finance Documents may be made by electronic mail or other
electronic means, if the Agent and the relevant Lender:

	 	(i)	 	agree that, unless and until notified to the contrary, this is to be
an accepted form of communication;

	 	(ii)	 	notify each other in writing of their electronic mail address and/or
any other information required to enable the sending and receipt of
information by that means; and

	 	(iii)	 	notify each other of any change to their address or any other such
information supplied by them.

	 	(b)	 	Any electronic communication made between the Agent and a Lender will be
effective only when actually received in readable form and in the case of any
electronic communication made by a Lender to the Agent only if it is addressed in such
a manner as the Agent shall specify for this purpose.

	30.6	 	English language

	 	(a)	 	Any notice given under or in connection with any Finance Document must be in
English.

	 	(b)	 	All other documents provided under or in connection with any Finance Document
must be:

	 	(i)	 	in English; or

	 	(ii)	 	if not in English, and if so required by the Agent, accompanied by a
certified English translation and, in this case, the English translation will
prevail unless the document is a constitutional, statutory or other official
document.

	31.	 	CALCULATIONS AND CERTIFICATES

	31.1	 	Accounts

In any litigation or arbitration proceedings arising out of or in connection with a
Finance Document, the entries made in the accounts maintained by a Finance Party are prima
facie evidence of the matters to which they relate.

	31.2	 	Certificates and Determinations

Any certification or determination by a Finance Party of a rate or amount under any
Finance Document is, in the absence of manifest error, conclusive evidence of the matters to
which it relates.

	31.3	 	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day
to day and is calculated on the basis of the actual number of days elapsed and a year of 360
days or, in any case where the practice in the Relevant Interbank Market differs, in
accordance with that market practice.

	32.	 	PARTIAL INVALIDITY

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid
or unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way be
affected or impaired.

	33.	 	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance Party,
any right or remedy under the Finance Documents shall operate as a waiver, nor shall any
single or partial exercise of any right or remedy prevent any further or other exercise or
the exercise of any other right or remedy. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by law.

	34.	 	AMENDMENTS AND WAIVERS

	34.1	 	Required consents

	 	(a)	 	Subject to Clause 34.2 (Exceptions) any term of the Finance Documents may be
amended or waived only with the consent of the Majority Lenders and the Obligors and
any such amendment or waiver will be binding on all Parties.

	 	(b)	 	The Agent may effect, on behalf of any Finance Party, any amendment or waiver
permitted by this Clause.

	 	(c)	 	Except as otherwise provided in paragraph (b) of Clause 34.2 (Exceptions), the
consent of the Account Bank is not required for any amendment to or change of any term
of this Agreement.

	34.2	 	Exceptions

	 	(a)	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(i)	 	the definition of “Majority Lenders” in Clause 1.1 (Definitions);

	 	(ii)	 	an extension to the date of payment of any amount under the Finance
Documents;

	 	(iii)	 	a reduction in the Margin or a reduction in the amount of any
payment of principal, interest, fees or commission payable;

	 	(iv)	 	an increase in or an extension of any Commitment;

	 	(v)	 	a change to the Borrowers or Guarantors other than in accordance with
Clause 24 (Changes to the Obligors);

	 	(vi)	 	any provision which expressly requires the consent of all the
Lenders; or

	 	(vii)	 	Clause 2.3 (Finance Parties’ rights and obligations), Clause 23
(Changes to the Lenders), Clause 27 (Sharing among the Finance Parties) or
this Clause 34,

shall not be made without the prior consent of all the Lenders.

	 	(b)	 	An amendment or waiver which relates to the rights or obligations of the Agent,
the Account Bank or the Arranger may not be effected without the consent of the Agent,
the Account Bank or the Arranger.

	35.	 	COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the
same effect as if the signatures on the counterparts were on a single copy of the Finance
Document.

	36.	 	GOVERNING LANGUAGE

Although this Agreement may be translated into Russian, the Russian version is for
information purposes only.

The English language version of this Agreement shall prevail and questions of interpretation
shall be addressed solely in the English language.

	37.	 	USA PATRIOT ACT

Each US Lender and US Affiliate of each Lender hereby notifies each Obligor that
pursuant to the requirements of the USA Patriot Act, such US Lender or US Affiliate may be
required to obtain, verify, and record information that identifies such Obligor, which
information includes the name and address of such Obligor and other information that will
allow such US Lender or US Affiliate to identify such Obligor in accordance with the USA
Patriot Act.

12

SECTION 12

GOVERNING LAW AND ENFORCEMENT

	38.	 	GOVERNING LAW

This Agreement is governed by English law.

	39.	 	ENFORCEMENT

	39.1	 	Jurisdiction

	 	(a)	 	The courts of England have exclusive jurisdiction to settle any dispute arising
out of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a “Dispute”).

	 	(b)	 	The Parties agree that the courts of England are the most appropriate and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.

	 	(c)	 	This Clause 39.1 is for the benefit of the Finance Parties only. As a result,
no Finance Party shall be prevented from taking proceedings relating to a Dispute in
any other courts with jurisdiction. To the extent allowed by law, the Finance Parties
may take concurrent proceedings in any number of jurisdictions.

	39.2	 	Service of process

Without prejudice to any other mode of service allowed under any relevant law, each
Obligor (other than an Obligor incorporated in England and Wales):

	 	(a)	 	irrevocably appoints Law Debenture Corporate Services Limited as its agent for
service of process in relation to any proceedings before the English courts in
connection with any Finance Document; and

	 	(b)	 	agrees that failure by an agent for service of process to notify the relevant
Obligor of the process will not invalidate the proceedings concerned.

	39.3	 	Waiver of Immunity

Each Obligor waives generally all immunity it or its assets or revenues may otherwise
have in any jurisdiction, including immunity in respect of:

	 	(a)	 	the giving of any relief by way of injunction or order for specific performance
or for the recovery of assets or revenues; and

	 	(b)	 	the issue of any process against its assets or revenues for the enforcement of
a judgment or, in an action in rem, for the arrest, detention or sale of any of its
assets and revenues.

	40.	 	ARBITRATION

	40.1	 	Arbitration

Subject to Clause 40.4 (Agent’s option) any Dispute shall be referred to and finally
resolved by arbitration under the Arbitration Rules (the “Rules”) of the London Court of
International Arbitration.

	40.2	 	Procedure for arbitration

	 	(a)	 	The arbitral tribunal shall consist of three arbitrators. The claimant(s),
irrespective of number, shall nominate jointly one arbitrator; the respondent(s),
irrespective of number, shall nominate jointly the second arbitrator; and a third
arbitrator, who shall be a Queen’s Counsel of at least five years’ standing and who
shall serve as Chairman, shall be appointed by the LCIA Court (as defined in the Rules)
within 15 days of the appointment of the second arbitrator.

	 	(b)	 	In the event the claimant(s) or the respondent(s) shall fail to nominate an
arbitrator within the time limits specified in the Rules, such arbitrator shall be
appointed by the LCIA Court within 15 days of such failure. In the event that both the
claimant(s) and the respondent(s) fail to nominate an arbitrator within the time limits
specified in the Rules, all three arbitrators shall be appointed by the LCIA Court
within 15 days of such failure who shall designate one of them as chairman.

	 	(c)	 	If all the parties to an arbitration so agree, there shall be a sole arbitrator
appointed by the LCIA Court within 15 days of such agreement.

	 	(d)	 	The seat of arbitration shall be London, England and the language of the
arbitration shall be English.

	40.3	 	Recourse to courts

Save as provided in Clause 40.4 (Agent’s option), the Parties exclude the jurisdiction
of the courts under Sections 45 and 69 of the Arbitration Act 1996.

	40.4	 	Agent’s option

Before an arbitrator has been appointed to determine a Dispute, the Agent (if acting on
its own behalf) may (and shall, when acting on behalf of the Lenders, if so instructed by
the Majority Lenders) by notice in writing to all other Parties require that all Disputes or
a specific Dispute be heard by a court of law. If the Agent gives such notice, the Dispute
to which that notice refers shall be determined in accordance with Clause 39.1
(Jurisdiction).

	41.	 	WAIVER OF JURY TRIAL

EACH OF THE PARTIES TO THIS AGREEMENT AGREES TO WAIVE IRREVOCABLY ITS RIGHTS TO A JURY
TRIAL OF ANY CLAIM BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE DOCUMENTS
REFERRED TO IN THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED IN THIS AGREEMENT. This
waiver is intended to apply to all Disputes. Each party acknowledges that (a) this waiver
is a material inducement to enter into this Agreement, (b) it has already relied on this
waiver in entering into this Agreement and (c) it will continue to rely on this waiver in
future dealings. Each party represents that it has reviewed this waiver with its legal
advisers and that it knowingly and voluntarily waives its jury trial rights after
consultation with its legal advisers. In the event of litigation, this Agreement may be
filed as a written consent to a trial by the court.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

SCHEDULE 1

The Original Parties

Part I

The Original Obligors

1. The Original Borrowers

	 	 	 
	Name of Original Facility A Borrower	 	Registration number (or
	 	 	equivalent, if any)
	Golden Telecom Inc.

	 	N/A
	 
	 	 
	GTS Finance Inc.

	 	N/A

	 	 	 	 	 
	Name of Original Borrowers	 	Registration number (or equivalent, if
	 	 	any)
	Golden Telecom Inc.
	 	 	N/A	 
	EDN Sovintel LLC.
	 	 	1027739006690	 
	GTS Finance Inc.
	 	 	N/A	 

2. The Original Guarantors

	 	 	 	 	 
	Name of Original Guarantor	 	Registration number (or equivalent, if
	 	 	any)
	Golden Telecom Inc.
	 	 	N/A	 
	EDN Sovintel LLC.
	 	 	1027739006690	 
	GTS Finance Inc.
	 	 	N/A	 

Part II

13

The Original Lenders

	 	 	 	 	 	 	 	 	 
	Name of Original Lender	 	Facility A	 	Facility B
	 	 	Commitment (US$)	 	Commitment (US$)
	Citibank N.A., Bahrain
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	ING BANK (EURASIA) ZAO
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	ZAO Banca Intesa
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	Bayerische Landesbank
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	Commerzbank (Eurasija) SAO
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	Export Development Canada
	 	 	4,545,454.55	 	 	 	20,454,545.45	 
	HSBC Bank Plc
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	HVB Banque Luxembourg Société Anonyme
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	Bank Austria Creditanstalt AG
	 	 	2,727,272.73	 	 	 	12,272,727.27	 
	KfW, Frankfurt
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	Skandinaviska Enskilda Banken AB
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	Bank WestLB Vostok (ZAO)
	 	 	3,636,363.64	 	 	 	16,363,636.36	 
	BNP Paribas
	 	 	2,727,272.73	 	 	 	12,272,727.27	 
	IKB Deutsche Industriebank AG
	 	 	1,818,181.82	 	 	 	8,181,818.18	 
	Closed Joint Stock Company
International Moscow Bank
	 	 	909,090.91	 	 	 	4,090,909.09	 
	VTB Bank (Deutschland) AG
	 	 	909,090.91	 	 	 	4,090,909.09	 
	Total
	 	 	50,000,000	 	 	 	225,000,000	 

SCHEDULE 2

Conditions precedent

Part I

Conditions precedent to initial Utilisation

	1.	 	Original Obligors

	 	(a)	 	A copy of the constitutional documents of each Original Obligor, including, in
relation to any Russian Obligor:

	 	(i)	 	An extract from the Unified State Register of Legal Entities dated no
earlier than three months prior to the date of this Agreement.

	 	(ii)	 	A notarised copy of the certificate of state registration issued by
the relevant registration authority in accordance with the Federal Law No.
129-FZ of 8 August 2001 On State Registration of Legal Entities and Individual
Entrepreneurs.

	 	(iii)	 	Notarised copies of the charter and the constitutive agreement and
their amendments.

	 	(iv)	 	Notarised copies of the certificates of registration of the
amendments to the charter and the constitutive agreement.

	 	(v)	 	A notarised copy of the certificate of registration with the relevant
federal tax authority in the Russian Federation.

	 	(b)	 	A copy of a good standing certificate (including verification of tax status)
with respect to each U.S. Obligor, issued as of a recent date by the Secretary of State
or other appropriate official of each U.S. Obligor’s jurisdiction of incorporation or
organization.

	 	(c)	 	A copy of a resolution of the board of directors or any other relevant
corporate body of each Original Obligor:

	 	(i)	 	approving the terms of, and the transactions contemplated by, the
Finance Documents to which it is a party and resolving that it execute the
Finance Documents to which it is a party;

	 	(ii)	 	authorising a specified person or persons to execute the Finance
Documents to which it is a party on its behalf; and

	 	(iii)	 	authorising a specified person or persons, on its behalf, to sign
and/or despatch all documents and notices (including, if relevant, any
Utilisation Request) to be signed and/or despatched by it under or in
connection with the Finance Documents to which it is a party.

	 	(d)	 	A specimen of the signature of each person authorised by the resolution
referred to in paragraph (c) above and, in relation to any Russian Obligor, a notarised
copy of the most recent banking sample signatures and seal card or an original of the
letter executed by an authorised signatory certifying sample signatures of the
signatories of each Russian Obligor to the Finance Documents and related documents and
their respective positions.

	 	(e)	 	A certificate of the Company (signed by a director or, in relation to any US
Obligor, other authorised signatory) confirming that borrowing or guaranteeing, as
appropriate, the Total Commitments would not cause any borrowing, guaranteeing or
similar limit binding on any Original Obligor to be exceeded.

	 	(f)	 	A certificate of an authorised signatory of the relevant Original Obligor and
in relation to any Russian Obligor, from its chief executive officer (or a person
acting under a power of attorney referred to as item (i) below) certifying that:

	 	(i)	 	there has been no material adverse change in the financial condition
of the relevant Obligor since the date of its Original Financial Statements;

	 	(ii)	 	each copy document relating to it specified in this Part 1 of
Schedule 2 is correct, complete and in full force and effect as at the date of
this Agreement; and

	 	(iii)	 	in relation to the Russian Obligor:

	 	(A)	 	there has been no amendment to the information contained in the
extract from the Unified State Register of Legal Entities listed as item
(a) above or that such amendments are enclosed with the certificate;

	 	(B)	 	the conclusion and performance of its obligations under the
Finance Documents and related documents does not violate any internal
regulations of the Russian Obligor nor any decisions of its management
bodies;

	 	(C)	 	there are parties which are interested (as defined in Article
45 of the LLC Companies Law) in concluding by the Russian Obligor the
transaction contemplated in the Finance Documents and related documents;
and

	 	(D)	 	the transaction contemplated in the Finance Documents and
related documents constitutes a major transaction for the Russian
Obligor (as defined in Article 46 of the LLC Companies Law).

	 	(g)	 	A certificate of the Chief Financial Officer of each U.S. Obligor stating that
the respective company is Solvent at the date of the certificate and will remain
Solvent after the advance of the initial Loans, the application of the proceeds of the
Loans in accordance with Clause 3 and the payment of all estimated legal, accounting
and other fees related to this Agreement and the consummation of the other transactions
contemplated by this Agreement. For purposes of this certificate, “Solvent” means with
respect to such U.S. Obligor on any date of determination that (a) the fair value of
the property of such person is greater than the total amount of liabilities (including
contingent and unliquidated liabilities) of such person; (b) the present fair saleable
value of the assets of such person is not less than the amount which will be required
to pay the probable liability of such person on its debts as they become absolute and
mature; (c) such person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such person’s ability to pay as such debts and liabilities
mature; and (d) such person is not engaged in a business or transaction, and is not
about to engage in a business or transaction, for which such person’s property would
constitute unreasonably small capital. In computing the amount of contingent or
unliquidated liabilities at any time, such liabilities will be computed at the amount
which, in light of all the facts and circumstances existing at such time, represents
the amount that can reasonably be expected to become an actual and matured liability.

Terms used in this paragraph shall be interpreted in accordance with the United
States Bankruptcy Code and applicable comparable state law.

	 	(h)	 	Copies certified by an authorised signatory of any Russian Obligor of the
resolutions or orders appointing its chief executive officer and its chief accountant.

	 	(i)	 	Notarised copies of the powers of attorney in favour of the signatories of
each Russian Obligor authorising the execution by them of the Finance Documents and
related documents.

	2.	 	Legal opinions

	 	(a)	 	A legal opinion of Clifford Chance LLP legal advisers to the Arranger and the
Agent in England, substantially in the form distributed to the Original Lenders prior
to signing this Agreement.

	 	(b)	 	In relation to any Original Obligor incorporated in the US, a legal opinion of
Chadbourne & Parke LLP legal advisers to the Original Obligors in the United States of
America substantially in the form distributed to the Original Lenders prior to signing
this Agreement.

	 	(c)	 	In relation to any Original Obligor incorporated in Russia, a legal opinion of
Clifford Chance CIS Limited, legal advisers to the Arranger and the Agent in Russia,
substantially in the form distributed to the Original Lenders prior to signing this
Agreement.

	3.	 	Finance Documents and Authorisations

Finance Documents

Each of the Finance Documents duly executed by the parties thereto and in full force and
effect.

Transaction Authorisations

A copy, certified as a true and current copy by an authorised signatory of each Russian
Obligor, of the Transaction Authorisations and of the Loan Passport.

	4.	 	Other documents and evidence

	 	(a)	 	Evidence that any agent for service of process referred to in Clause 39.2
(Service of process), if not an Original Obligor, has accepted its appointment.

	 	(b)	 	A copy of any other Authorisation or other document, opinion or assurance
which the Agent considers reasonably to be necessary or desirable (if it has notified
the Company accordingly) in connection with the entry into and performance of the
transactions contemplated by any Finance Document or for the validity and
enforceability of any Finance Document.

	 	(c)	 	The Original Financial Statements of each Original Obligor.

	 	(d)	 	A certified copy of the business plan prepared by the management of the
Reporting Group together with the financial projections, for the period from the date
of this Agreement until 31 December 2012.

	 	(e)	 	Evidence that the fees, costs and expenses then due from the Company pursuant
to Clause 11 (Fees) and Clause 16 (Costs and expenses) have been paid or will be paid
by the first Utilisation Date.

Part II

14

Conditions Precedent required to be

delivered by an Additional Obligor

	1.	 	An Accession Letter, duly executed by the Additional Obligor and the Company.

	2.	 	A copy, certified as a true and current copy by an authorised signatory of each
Russian Obligor, of the Transaction Authorisations and of the Loan Passport.

	3.	 	A copy of the constitutional documents of the Additional Obligor, including, in
relation to any Russian Obligor:

	 	(a)	 	An extract from the Unified State Register of Legal Entities dated no
earlier than three months prior to the date of the Accession Letter.

	 	(b)	 	A notarised copy of the certificate of state registration issued by the
relevant registration authority in accordance with the Federal Law No. 129-FZ of
8 August 2001 On State Registration of Legal Entities and Individual
Entrepreneurs.

	 	(c)	 	Notarised copies of the charter and the constitutive agreement and
their amendments.

	 	(d)	 	Notarised copies of the certificates of registration of the amendments
to the charter and the constitutive agreement.

	4.	 	In relation to any Additional Obligor incorporated in Russia, a notarised copy of the
certificate of registration with the relevant federal tax authority in the Russian
Federation..

	5.	 	A copy of a good standing certificate (including verification of tax status) with
respect to each U.S. Obligor, issued as of a recent date by the Secretary of State or other
appropriate official of each U.S. Obligor’s jurisdiction of incorporation or organization.

	6.	 	A copy of a resolution of the board of directors or any other relevant corporate body
of the Additional Obligor:

	 	(a)	 	approving the terms of, and the transactions contemplated by, the
Accession Letter and the Finance Documents and resolving that it execute the
Accession Letter;

	 	(b)	 	authorising a specified person or persons to execute the Accession
Letter on its behalf; and

	 	(c)	 	authorising a specified person or persons, on its behalf, to sign
and/or despatch all other documents and notices (including, in relation to an
Additional Borrower, any Utilisation Request) to be signed and/or despatched by
it under or in connection with the Finance Documents.

	7.	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 6 above and, in relation to any Russian Obligor, a notarised copy of the most recent
banking sample signatures and seal card or an original of the letter executed by an authorised
signatory certifying sample signatures of the signatories of each Russian Obligor to the
Finance Documents and related documents and their respective positions.

	8.	 	A copy of a resolution signed by all the holders of the issued shares of the
Additional Guarantor, approving the terms of, and the transactions contemplated by, the
Finance Documents to which the Additional Guarantor is a party.

	9.	 	A certificate of the Additional Obligor (signed by a director or, in relation to any
US Obligor, other authorised signatory) confirming that borrowing or guaranteeing, as
appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar
limit binding on it to be exceeded.

	10.	 	A certificate of an authorised signatory of the Additional Obligor and in relation to
any Russian Obligor, from its chief executive officer (or a person acting under a power of
attorney referred to as item 12 below) certifying that:

	 	(a)	 	there has been no material adverse change in the financial condition of
the relevant Obligor since the date of its latest audited or, as the case may
be, unaudited financial statements;

	 	(b)	 	each copy document relating to it specified in this Part II of Schedule
2 is correct, complete and in full force and effect as at a date no earlier than
the date of this Agreement; and

	 	(c)	 	in relation to any Russian Obligor:

	 	(i)	 	there has been no amendment to the information contained in
the extract from the Unified State Register of Legal Entities listed
as item 3(a) above;

	 	(ii)	 	the conclusion and performance of its obligations under the
Finance Documents and related documents does not violate any internal
regulations of the relevant Russian Obligor nor any decisions of its
management bodies;

	 	(iii)	 	[there are/there are no] parties which are interested (as
defined in Article 81/45 of the Federal Law no. 208-FZ of 26 December
1995 on Joint Stock Companies or the Companies Law, as applicable to
the Additional Obligor) in concluding by any Russian Obligor the
transaction contemplated in the Finance Documents and related
documents; and

	 	(iv)	 	the transaction contemplated in the Finance Documents and
related documents [does/does not] constitute a major transaction for
any Russian Obligor (as defined in Article 78/6 of the Federal Law no.
208-FZ of 26 December 1995 on Joint Stock Companies or the Companies
Law, as applicable to the Additional Obligor).

	11.	 	Copies certified by an authorised signatory of any Russian Obligor of the resolutions
or orders appointing its chief executive officer and its chief accountant.

	12.	 	Notarised copies of the powers of attorney in favour of the signatories of each
Russian Obligor authorising the execution by them of the Finance Documents and related
documents.

	13.	 	A copy of any other Authorisation or other document, opinion or assurance which the
Agent considers to be necessary or desirable in connection with the entry into and performance
of the transactions contemplated by the Accession Letter or for the validity and
enforceability of any Finance Document.

	14.	 	If available, the latest audited financial statements of the Additional Obligor or,
if not available, the latest unaudited financial statements of the Additional Obligor.

	15.	 	A legal opinion of Clifford Chance LLP, legal advisers to the Arranger and the Agent
in England.

	16.	 	If the Additional Obligor is incorporated in a jurisdiction other than England and
Wales, a legal opinion of the legal advisers to the Additional Obligor, or as the case may be
of the legal advisers of the Arranger and the Agent, in the jurisdiction in which the
Additional Obligor is incorporated.

	17.	 	If the proposed Additional Obligor is incorporated in a jurisdiction other than
England and Wales, evidence that the agent for service of process specified in Clause 39.2
(Service of process), if not an Obligor, has accepted its appointment in relation to the
proposed Additional Obligor.

	18.	 	A certificate of the Chief Financial Officer of each U.S. Obligor stating that the
respective company is Solvent at the date of the certificate and will remain Solvent after the
advance of the initial Loans, the application of the proceeds of the Loans in accordance with
Clause 3 and the payment of all estimated legal, accounting and other fees related to this
Agreement and the consummation of the other transactions contemplated by this Agreement. For
purposes of this certificate, “Solvent” means with respect to such U.S. Obligor on any date of
determination that (a) the fair value of the property of such person is greater than the total
amount of liabilities (including contingent and unliquidated liabilities) of such person; (b)
the present fair saleable value of the assets of such person is not less than the amount which
will be required to pay the probable liability of such person on its debts as they become
absolute and mature; (c) such person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such person’s ability to pay as such debts and liabilities
mature; and (d) such person is not engaged in a business or transaction, and is not about to
engage in a business or transaction, for which such person’s property would constitute
unreasonably small capital. In computing the amount of contingent or unliquidated liabilities
at any time, such liabilities will be computed at the amount which, in light of all the facts
and circumstances existing at such time, represents the amount that can reasonably be expected
to become an actual and matured liability.

Terms used in this paragraph shall be interpreted in accordance with the United States
Bankruptcy Code and applicable comparable state law.

	19.	 	In relation to any additional Russian Obligor a Russian Obligor Account Amendment
Agreement duly executed by all the parties thereto and in full force and effect.

SCHEDULE 3

Utilisation Request

	 	 	 
	From:

To:

Dated:

	 	[Borrower]

[Agent]

Dear Sirs

Golden Telecom Inc. — US$275,000,000 Facility Agreement

dated 25 January 2007 (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Utilisation Request. Terms defined in the
Agreement have the same meaning in this Utilisation Request unless given a different meaning
in this Utilisation Request.

	2.	 	We wish to borrow a Loan on the following terms:

	 	 	 
	Proposed Utilisation Date:

	 	[        ] (or, if that is not

a Business Day, the next

Business Day)
	 
	 	 
	Facility to be utilised:

	 	[        ]
	 
	 	 
	Currency of Loan:

	 	Dollars
	 
	 	 
	Amount:

	 	[     ]
	 
	 	 
	Interest Period:

	 	[            ]

	3.	 	We confirm that each condition specified in Clause 4.2 (Further conditions precedent)
is satisfied on the date of this Utilisation Request.

	4.	 	The proceeds of this Loan should be credited to [account].

	5.	 	This Utilisation Request is irrevocable.

Yours faithfully

.......................................

authorised signatory for

[name of relevant Borrower]

SCHEDULE 4

Mandatory Cost formulae 

	1.	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the
cost of compliance with (a) the requirements of the Financial Services Authority (or
any other authority which replaces all or any of its functions) or (b) the requirements
of the European Central Bank.

	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the Agent
shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to
the percentage participation of each Lender in the relevant Loan) and will be expressed as a
percentage rate per annum.

	3.	 	The Additional Cost Rate for any Lender lending from a Facility Office in a
Participating Member State will be the percentage notified by that Lender to the Agent. This
percentage will be certified by that Lender in its notice to the Agent to be its reasonable
determination of the cost (expressed as a percentage of that Lender’s participation in all
Loans made from that Facility Office) of complying with the minimum reserve requirements of
the European Central Bank in respect of loans made from that Facility Office.

	4.	 	The Additional Cost Rate for any Lender lending from a Facility Office in the United
Kingdom will be calculated by the Agent as follows:

per cent per annum

Where:

	 	 	 	E            is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 7 below and
expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

	 	(a)	 	"Fees Rules” means the rules on periodic fees contained in the FSA
Supervision Manual or such other law or regulation as may be in force from time
to time in respect of the payment of fees for the acceptance of deposits;

	 	(b)	 	"Fee Tariffs” means the fee tariffs specified in the Fees Rules under
the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated
fee required pursuant to the Fees Rules but taking into account any applicable
discount rate); and

	 	(c)	 	"Tariff Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	6.	 	If requested by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent, the rate of charge
payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules
in respect of the relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that
Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of that Reference Bank.

	7.	 	Each Lender shall supply any information required by the Agent for the purpose of
calculating its Additional Cost Rate. In particular, but without limitation, each Lender
shall supply the following information on or prior to the date on which it becomes a Lender:

	 	(a)	 	the jurisdiction of its Facility Office; and

	 	(b)	 	any other information that the Agent may reasonably require for such
purpose.

Each Lender shall promptly notify the Agent of any change to the information provided by it
pursuant to this paragraph.

	8.	 	The rates of charge of each Reference Bank for the purpose of E above shall be
determined by the Agent based upon the information supplied to it pursuant to paragraphs 7
above.

	9.	 	The Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.

	10.	 	The Agent shall distribute the additional amounts received as a result of the
Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based
on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7
and 8 above.

	11.	 	Any determination by the Agent pursuant to this Schedule in relation to a formula,
the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties.

	12.	 	The Agent may from time to time, after consultation with the Company and the Lenders,
determine and notify to all Parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time
to time imposed by the Financial Services Authority or the European Central Bank (or, in any
case, any other authority which replaces all or any of its functions) and any such
determination shall, in the absence of manifest error, be conclusive and binding on all
Parties.

SCHEDULE 5

Form of Transfer Certificate

	 	 	 
	To:

From:

Dated:

	 	[      ] as Agent

[The Existing Lender] (the “Existing Lender”) and [The New

Lender] (the “New Lender”)

Golden Telecom Inc. — US$275,000,000 Facility Agreement

dated 25 January 2007 (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the
Agreement have the same meaning in this Transfer Certificate unless given a different meaning
in this Transfer Certificate.

	2.	 	We refer to Clause 23.5 (Procedure for transfer):

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing Lender
transferring to the New Lender by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule in accordance
with Clause 23.5 (Procedure for transfer).

	 	(b)	 	The proposed Transfer Date is [      ].

	 	(c)	 	The Facility Office and address, fax number and attention details for
notices of the New Lender for the purposes of Clause 30.2 (Addresses) are set
out in the Schedule.

	3.	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s
obligations set out in paragraph (c) of Clause 23.4 (Limitation of responsibility of Existing
Lenders).

	4.	 	This Transfer Certificate may be executed in any number of counterparts and this has
the same effect as if the signatures on the counterparts were on a single copy of this
Transfer Certificate.

	5.	 	This Transfer Certificate is governed by English law.

15

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for

payments,]

	 	 	 
	[Existing Lender]

	 	[New Lender]
	 
	 	 
	 
	 	 
	 
	 	 
	By:

	 	By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as
[           ].

[Agent]

By:

SCHEDULE 6

form of accession letter

	 	 	 
	To:

From:

Dated:

	 	[        ] as Agent

[Subsidiary] and [Company]

Dear Sirs

Golden Telecom Inc. — US$275,000,000 Facility Agreement

dated 25 January 2007 (the “Agreement”)

	1.	 	We refer to the Agreement. This is an Accession Letter. Terms defined in the
Agreement have the same meaning in this Accession Letter unless given a different meaning in
this Accession Letter.

	2.	 	[Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by
the terms of the Agreement as an Additional [Borrower]/[Guarantor] pursuant to Clause [24.2
(Additional Borrowers)]/[Clause 24.4 (Additional Guarantors)] of the Agreement. [Subsidiary]
is a company duly incorporated under the laws of [name of relevant jurisdiction].

	3.	 	[Subsidiary’s] administrative details are as follows:

Address:

Fax No:

Attention:

	4.	 	This Accession Letter is governed by English law.

[This Guarantor Accession Letter is entered into by a deed.]

	 	 	 
	[Company]

	 	[Subsidiary]

SCHEDULE 7

form of resignation letter

	 	 	 
	To:

From:

	 	[      ] as Agent

[resigning Obligor] and [Company]

Dated:

Dear Sirs

Golden Telecom Inc. — US$275,000,000 Facility Agreement

dated 25 January 2007 (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Resignation Letter. Terms defined in the
Agreement have the same meaning in this Resignation Letter unless given a different meaning in
this Resignation Letter.

	2.	 	Pursuant to [Clause 24.3 (Resignation of a Borrower)]/[Clause 24.6 (Resignation of a
Guarantor), we request that [resigning Obligor] be released from its obligations as a
[Borrower]/[Guarantor] under the Agreement.

	3.	 	We confirm that:

	 	(a)	 	no default is continuing or would result from the acceptance of this
request; and

	 	(b)	 	[                     ]¬

	4.	 	This Resignation Letter is governed by English law.

	 	 	 
	[Company]

	 	[Subsidiary]
	 
	 	 
	 
	 	 
	 
	 	 
	By:

	 	By:

SCHEDULE 8

Form of Compliance Certificate

	 	 	 
	To:

From:

	 	[      ] as Agent

[Company]

Dated:

Dear Sirs

Golden Telecom Inc. — US$275,000,000 Facility Agreement dated 25 January 2007 (the

“Agreement”)¬

	1.	 	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the
Agreement have the same meaning when used in this Compliance Certificate unless given a
different meaning in this Compliance Certificate.

	2.	 	We confirm that:

[insert details of financial covenants and whether the Borrower is in compliance with those
covenants.]

	3.	 	[We confirm that no Default is continuing.] **

	 	 	 
	Signed: ....

	 	...............
	 
	 	 
	Director

	 	Director
	 
	 	 
	of

	 	of
	 
	 	 
	[Company]

	 	[Company]

SCHEDULE 9

Existing Security

	 	 	 	 	 
	Name of Obligor

	 	Security
	 	Total Principal

Amount of

Indebtedness

Secured
	 
	 	 	 	 
	Golden Telecom Ukraine LLC

 

 

	 	Pledge of all

of Golden Telecom

Ukraine LLC’s

moveable assets to

support a US$

25,000,000 loan

from GTS Finance

Inc.
	 	

US$25,000,000

SCHEDULE 10

LMA Form of Confidentiality Undertaking 

THIS MASTER CONFIDENTIALITY UNDERTAKING is dated [•] and made between:

	(1)	 	[•]; and

	(2)	 	[•].

Either party (in this capacity the “Purchaser”) may from time to time consider acquiring an
interest from the other party (in this capacity the “Seller”) in certain Agreements (each an
"Acquisition”). In consideration of the Seller agreeing to make available to the Purchaser certain
information in relation to each Acquisition it is agreed as follows:

	1.	 	CONFIDENTIALITY UNDERTAKING

The Purchaser undertakes in relation to each Acquisition made or to be made by it (a)
to keep the Confidential Information which the Seller supplies to the Purchaser in relation
to that Acquisition confidential and not to disclose it to anyone except as provided for by
paragraph 2 below and to ensure that the Confidential Information which the Seller supplies
to the Purchaser in relation to that Acquisition is protected with security measures and a
degree of care that would apply to the Purchaser’s own confidential information, (b) to use
the Confidential Information which the Seller supplies to the Purchaser in relation to that
Acquisition only for the Permitted Purpose, (c) to use all reasonable endeavours to ensure
that any person to whom the Purchaser passes any Confidential Information which the Seller
supplies to the Purchaser in relation to that Acquisition (unless disclosed under paragraph
2(c) below) acknowledges and complies with the provisions of this undertaking as if that
person were also a party to it, and (d) not to make enquiries of any member of the relevant
Group or any of their officers, directors, employees or professional advisers relating
directly or indirectly to that Acquisition.

	2.	 	PERMITTED DISCLOSURE

The Purchaser may disclose Confidential Information which the Seller supplies to the
Purchaser in relation to each Acquisition made or to be made by it:

	 	(a)	 	to members of the Purchaser Group and their officers, directors, employees and
professional advisers to the extent necessary for the Permitted Purpose and to any
auditors of members of the Purchaser Group;

	 	(b)	 	subject to the requirements of the relevant Agreement, to any person to (or
through) whom the Purchaser assigns or transfers (or may potentially assign or
transfer) all or any of the rights, benefits and obligations which the Purchaser may
acquire under that Agreement or with (or through) whom the Purchaser enters into (or
may potentially enter into) any sub-participation in relation to, or any other
transaction under which payments are to be made by reference to, that Agreement or the
relevant Borrower or any member of the relevant Group in each case so long as that
person has delivered an undertaking to the Purchaser in equivalent form to this
undertaking; and

	 	(c)	 	(i) where requested or required by any court of competent jurisdiction or any
competent judicial, governmental, supervisory or regulatory body, (ii) where required
by the rules of any stock exchange on which the shares or other securities of any
member of the Purchaser Group are listed or (iii) where required by the laws or
regulations of any country with jurisdiction over the affairs of any member of the
Purchaser Group.

	3.	 	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE

The Purchaser agrees in relation to each Acquisition made or to be made by it (to the
extent permitted by law) to inform the Seller of the full circumstances of any disclosure
under paragraph 2 (c) or upon becoming aware that any Confidential Information relating to
that Acquisition has been disclosed in breach of this undertaking.

	4.	 	RETURN OF COPIES

If the Seller so requests in writing, the Purchaser shall return all Confidential
Information supplied by the Seller to the Purchaser in relation to any Acquisition made or
to be made by the Purchaser and in respect of which the Seller has made such a request and
destroy or permanently erase all copies of such Confidential Information made by the
Purchaser and use all reasonable endeavours to ensure that anyone to whom the Purchaser has
supplied any such Confidential Information destroys or permanently erases such Confidential
Information and any copies made by them, in each case save to the extent that the Purchaser
or the recipients are required to retain any such Confidential Information by any applicable
law, rule or regulation or by any competent judicial, governmental, supervisory or
regulatory body or in accordance with internal policy, or where the Confidential Information
has been disclosed under paragraph 2 (c) above.

	5.	 	CONTINUING OBLIGATIONS

The obligations in this undertaking are continuing and, in particular, shall survive
the termination of any discussions or negotiations between the Seller and the Purchaser in
relation to each Acquisition made or to be made by it. Notwithstanding the previous
sentence, the obligations in this undertaking shall cease in relation to that Acquisition
only (a) if the Purchaser becomes a party to or otherwise acquires (by assignment or
sub-participation) an interest, direct or indirect, in the Agreement which was the subject
of that Acquisition or (b) twelve months after the Purchaser has returned all Confidential
Information supplied to it by the Seller in relation to that Acquisition and destroyed or
permanently erased all copies of such Confidential Information made by the Purchaser (other
than any such Confidential Information or copies which have been disclosed under paragraph 2
above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not
required to be returned or destroyed).

	6.	 	NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC

The Purchaser acknowledges and agrees that, in relation to each Acquisition made or to
be made by it:

	 	(a)	 	neither the Seller, nor any member of the Group the subject of that Acquisition
nor any of the Seller’s or the Group’s respective officers, employees or advisers (each
a “Relevant Person”) (i) make any representation or warranty, express or implied, as
to, or assume any responsibility for, the accuracy, reliability or completeness of any
of the Confidential Information supplied by the Seller to the Purchaser in relation to
that Acquisition or any other information supplied by the Seller or the assumptions on
which it is based or (ii) shall be under any obligation to update or correct any
inaccuracy in the Confidential Information supplied by the Seller to the Purchaser in
relation to that Acquisition or any other information supplied by the Seller or be
otherwise liable to the Purchaser or any other person in respect of the Confidential
Information supplied by the Seller to the Purchaser in relation to that Acquisition or
any such information; and

	 	(b)	 	the Seller or members of the Group the subject of that Acquisition may be
irreparably harmed by the breach of the terms of this undertaking and damages may not
be an adequate remedy; each Relevant Person may be granted an injunction or specific
performance for any threatened or actual breach of the provisions of this undertaking
by the Purchaser.

	7.	 	NO WAIVER; AMENDMENTS, ETC

This undertaking sets out the full extent of the Purchaser’s obligations of
confidentiality owed to the Seller in relation to the information the subject of this
undertaking. No failure or delay in exercising any right, power or privilege hereunder will
operate as a waiver thereof nor will any single or partial exercise of any right, power or
privilege preclude any further exercise thereof or the exercise of any other right, power or
privileges hereunder. The terms of this undertaking and the obligations of the Purchaser
hereunder may only be amended or modified by written agreement between the parties.

	8.	 	INSIDE INFORMATION

The Purchaser acknowledges that some or all of the Confidential Information is or may
be price-sensitive information and that the use of such information may be regulated or
prohibited by applicable legislation relating to insider dealing and the Purchaser
undertakes not to use any Confidential Information for any unlawful purpose.

	9.	 	NATURE OF UNDERTAKINGS

The undertakings given by the Purchaser in this undertaking are given to the Seller and
the relevant Borrower and each other member of the relevant Group.

	10.	 	THIRD PARTY RIGHTS

	 	(a)	 	Subject to this paragraph 10 and to paragraphs 6 and 9, a person who is not a
party to this undertaking has no right under the Contracts (Rights of Third Parties)
Act 1999 (the “Third Parties Act”) to enforce or to enjoy the benefit of any term of
this undertaking.

	 	(b)	 	The Relevant Persons may enjoy the benefit of the terms of paragraphs 6 and 9
subject to and in accordance with this paragraph 10 and the provisions of the Third
Parties Act.

	 	(c)	 	The parties to this undertaking do not require the consent of the Relevant
Persons to rescind or vary this undertaking at any time.

	11.	 	GOVERNING LAW AND JURISDICTION

	 	(a)	 	This undertaking is governed by English Law.

	 	(b)	 	The parties submit to the non-exclusive jurisdiction of the English courts.

	12.	 	DEFINITIONS

In this undertaking terms defined in the relevant Agreement (as defined below) shall,
unless the context otherwise requires, have the same meaning and:

"Agreement” means any credit agreement in which the Seller has an interest and which
requires the Seller to obtain from the Purchaser an undertaking in or substantially in the
form of this undertaking as a condition to permitting disclosure by the Seller of certain
information to the Purchaser.

"Borrower” means, in relation to each Acquisition, each company party to the relevant
Agreement;

"Confidential Information” means, in relation to each Acquisition, any information relating
to the relevant Borrower, the relevant Group, the relevant Agreement and/or that Acquisition
provided to the Purchaser by the Seller or any of its affiliates or advisers, in whatever
form, and includes information given orally and any document, electronic file or any other
way of representing or recording information which contains or is derived or copied from
such information but excludes information that (a) is or becomes public knowledge other than
as a direct or indirect result of any breach of this undertaking by the Purchaser or (b) is
known by the Purchaser before the date the information is disclosed to the Purchaser by the
Seller or any of its affiliates or advisers or is lawfully obtained by the Purchaser
thereafter, other than from a source which is connected with the relevant Group and which,
in either case, as far as the Purchaser is aware, has not been obtained in violation of, and
is not otherwise subject to, any obligation of confidentiality;

"Group” means, in relation to each Acquisition, the relevant Borrower and each of its
holding companies and subsidiaries and each subsidiary of each of its holding companies (as
each such term is defined in the Companies Act 1985);

"Permitted Purpose” means, in relation to each Acquisition, considering and evaluating
whether to enter into that Acquisition; and

"Purchaser Group” means, in relation to each Acquisition, the Purchaser, each of the
Purchaser’s holding companies and subsidiaries and each subsidiary of each of the Purchasers
holding companies (as each such term is defined in the Companies Act 1985).

This undertaking has been entered into on the date stated at the beginning of this undertaking

¬Insert any other conditions required by the
Facility Agreement.

¬ This Compliance Certificate shall be
accompanied by the Company’s auditors’ certificate addressed to the
Finance Parties in the following form:
“We have audited, in accordance with auditing standards generally accepted
in the United States of America, the consolidated balance sheet of Golden
Telecom Inc and its Subsidiaries (“the Company”) as of
     , and the related consolidated statements of operations,
changes in equity, and cash flows for the year then ended, and have issued our
report thereon dated      .

In connection with our audit, nothing came to our attention that caused us
to believe that the Company failed to comply with the terms, covenants,
provisions, or conditions of Clause 20 (Financial Covenants) of the US$
275,000,000 Facility Agreement between the financial institutions party thereto
as Lenders (“the Lenders”), Citibank N.A. and ING Bank N.V. as arrangers,
Citibank International Plc as agent, and the Company as borrower dated [...] 2007
insofar as they relate to accounting matters. However, our audit was not
directed primarily toward obtaining knowledge of such non-compliance.
This report is intended solely for the information and use of the Company,
the Lenders and the Agents and is not intended to be and should not be used by
anyone other than the specified parties.”

** If this statement cannot be made, the
certificate should identify any Default that is continuing and the steps,
if any, being taken to remedy it.

16

SIGNATURES

[•]

By:

[•]

By:

SCHEDULE 11

Timetables

	 	 	 
	 	 	Loans in US$
	Delivery of a duly completed

Utilisation Request (Clause 5.1

(Delivery of a Utilisation

Request)

	 	

U-3

9.30am
	 
	 	 
	Agent notifies the Lenders of the

Loan in accordance with Clause

5.4 (Lenders’ participation)

	 	

U-3

3.00pm
	 
	 	 
	LIBOR is fixed

	 	Quotation Day as of 11:00am

“U” = date of utilisation

“U — X” = X Business Days prior to date of utilisation

SCHEDULE 12

list over material subsidiaries

	 	 	 	 	 
	Name of Material Subsidiary	 	Registration no (or equivalent, if any)
	EDN Sovintel LLC
	 	 	1027739006690	 
	Golden Telecom Ukraine LLC
	 	 	19028202	 

SIGNATURES

	 	 	 
	THE COMPANY	 	 
	GOLDEN TELECOM INC	 	 
	By:

Address:

	 	JEAN-PIERRE VANDROMME

Golden Telecom Inc.

2831 29th St., NW

Washington, DC

20008 USA
	 
	 	 
	Attention:

Fax:

	 	General Counsel

+1-202-332-4877

	 	 	 
	THE ORIGINAL BORROWERS	 	 
	GOLDEN TELECOM INC	 	 
	By:

Address:

	 	JEAN-PIERRE VANDROMME

Golden Telecom Inc.

2831 29th St., NW

Washington, DC

20008 USA
	 
	 	 
	Attention:

Fax:

	 	General Counsel

+1-202-332-4877

	 	 	 
	EDN SOVINTEL LLC	 	 
	By:

Address:

	 	JEAN-PIERRE VANDROMME and OLGA SEMENOVA

EDN Sovintel LLC

1 Kozhevnichesky Proezd

Moscow, Russia

115114
	 
	 	 
	Attention:

Fax:

	 	Legal Director

+7-495-797-9306
	 
	 	 

17

	 	 	 
	GTS FINANCE INC	 	 
	By:

Address:

	 	BORIS SVETLICHNY

Golden Telecom Inc.

2831 29th St., NW

Washington, DC

20008 USA
	 
	 	 
	Attention:

Fax:

	 	General Counsel

+1-202-332-4877

	 	 	 
	THE ORIGINAL GUARANTORS	 	 
	GOLDEN TELECOM INC	 	 
	By:

Address:

	 	JEAN-PIERRE VANDROMME

Golden Telecom Inc.

2831 29th St., NW

Washington, DC

20008 USA
	 
	 	 
	Attention:

Fax:

	 	General Counsel

+1-202-332-4877

	 	 	 
	EDN SOVINTEL LLC	 	 
	By:

	 	JEAN-PIERRE VANDROMME
	 
	 	 
	By:

	 	OLGA SEMENOVA
	 
	 	 
	Address:

	 	EDN Sovintel LLC

1 Kozhevnichesky Proezd

Moscow, Russia

115114
	 
	 	 
	Attention:

Fax:

	 	Legal Director

+7-495-797-9306
	 
	 	 

18

	 	 	 
	GTS FINANCE INC	 	 
	By:

Address:

	 	BORIS SVETLICHNY

Golden Telecom Inc.

2831 29th St., NW

Washington, DC

20008 USA
	 
	 	 
	Attention:

Fax:

	 	General Counsel

+1-202-332-4877

	 	 	 
	THE ARRANGER	 	 
	CITIBANK N.A., London Branch
	By:

	 	RIZWAN SHAIKH
	 
	 	 
	ING BANK N.V.

By:

	 	

RIZWAN SHAIKH, Citibank N.A. on behalf of ING Bank N.V.

	 	 	 
	THE AGENT	 	 
	CITIBANK INTERNATIONAL PLC
	By:

Address:

	 	JANE HORNER

European Loans Agency

Capital Markets and Banking Operations

Citibank International PLC

5th Floor Citigroup Centre,

Canary Wharf London E14 5LB
	 
	 	 
	Attention:

Fax:

	 	Alasdair Watson

+44 (0) 20 8636 3824
	 
	 	 

19

	 	 	 
	THE ORIGINAL LENDERS	 	 
	CITIBANK N.A., BAHRAIN	 	 
	By:

Address:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of Citibank N.A., Bahrain

Citibank N.A. Bahrain

Block 428

Road 2819

Alseef District 1133

Kingdom of Bahrain
	 
	 	 
	Attention:

Fax:

	 	Terence Rodrigues / Nadia Ismail

+973 17 588510

	 	 	 
	ING BANK (EURASIA) ZAO	 	 
	By:

Address:

	 	HENDRIK TEN BOSCH (General Manager) and NATALIA

LONDARENKO (Chief Accountant)

ING Bank (Eurasia) ZAO

36, Krasnoproletarskaya str

Moscow 127473,

Russia
	 
	 	 
	Attention:

Fax:

	 	Medvedeva Victoria / Petrushin Igor

+7 (495) 755-549

	 	 	 
	ZAO BANCA INTESA	 	 
	By:

Address:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of ZAO Banca Intesa

ZAO Banca Intesa

2, bld. 2, Petroverigsky per,

Moscow 101000,

Russia
	 
	 	 
	Attention:

Fax:

	 	Tatiana Busygina

+7 (495) 411-8071
	 
	 	 

20

	 	 	 
	BAYERISCHE LANDESBANK	 	 
	By:

Address:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of Bayerische Landesbank

Bayerische Landesbank

Brienner Strasse 18,

80333 München,

Germany
	 
	 	 
	Attention:

Fax:

	 	Margit Schethaler

(49-89) 2171 22543

	 	 	 
	COMMERZBANK (EURASIJA) SAO
	By:

Address:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of Commerzbank

(Eurasija) SAO

Commerzbank (Eurasija) SAO

Kadashevskaya Nab. 14/2,

119017 Moscow,

Russia
	 
	 	 
	Attention:

Fax:

	 	Irina Rabinovich

+7 (495) 797 48 62

	 	 	 
	EXPORT DEVELOPMENT CANADA
	By:

Address:

Attention:

Fax:

	 	STEPHANO CARRERA and BRION CRAIG

Export Development Canada

151 O’Connor Street

Ottawa, Canada K1A 1K3

Tina McShane

+1 613 598 2514

	 	 	 
	HSBC BANK PLC	 	 
	By:

Address:

Attention:

Fax:

	 	ANDREW OWEN

HSBC Bank Plc

Corporate Trust and Loan Agency

Level 24

8 Canada Square

London E14 5 HQ

Matthew Li

+44 (0) 207 991 4347

	 	 	 
	HVB BANQUE LUXEMBOURG SOCIETE ANONYME
	By:

Address:

Attention:

Fax:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of HVB

Banque Luxembourg Société Anonyme

HVB Banque Luxembourg Société Anonyme

4, rue Alphonse Weicker

L-2721 Luxembourg

Silke Jakobs-Köhn

+352 4272 4547

	 	 	 
	BANK AUSTRIA CREDITANSTALT AG
	By:

Address:

Attention:

Fax:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of Bank

Austria Creditanstalt AG

Bank Austria Creditanstalt AG

Schottengasse 6-8

1010 Vienna, Austria

Sabine Teichmann

+43 50505 49394

	 	 	 
	KFW, FRANKFURT	 	 
	By:

Address:

Attention:

Fax:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of KfW Frankfurt

KfW Frankfurt

Department X4a2

Palmengartenstr. 5-9

60325 Frankfurt

Germany

Markus Schmid / Karina Friess

+ 49 69 7431 4013

	 	 	 
	SKANDINAVISKA ENSKILDA BANKEN AB
	By:

Address:

Attention:

Fax:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of

Skandinaviska Enskilda Banken AB

Skandinaviska Enskilda Banken AB

Rissneleden 110, RB8

S — 10640 Stockholm, Sweden

Christine von Wirén

+46 8 611 0384

	 	 	 
	BANK WESTLB VOSTOK (ZAO)
	By:

Address:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of Bank WestLB Vostok (ZAO)

121069 Moscow, ul. Povarskaya 23, str.4
	 
	 	 
	Attention:

Fax:

BNP PARIBAS

By:

Address:

Attention:

Fax:

	 	Anna Petrova / Irina Krasovskaya

+7 495 258 6100 / 04

BRUNO PEZY

BNP Paribas

CFI Loan Department

37, place du Marché Saint Honoré, 75001 Paris

75001 Paris, France

Mr Bruno Pezy / Mr Guillaume Chinardet

+ 33 1 42 98 10 65

	 	 	 
	IKB DEUTSCHE INDUSTRIEBANK AG
	By:

Address:

Attention:

Fax:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of IKB

Deutsche Industriebank AG

IKB Deutsche Industriebank AG

Wilhelm — Bötzkes — Strasse 1

40474 Düsseldorf

Germany

Stephanie Trint

+49 (0) 211/8221-2533

	 	 	 
	VTB BANK (DEUTSCHLAND) AG
	By:

Address:

Attention:

Fax:

	 	RIZWAN SHAIKH, Citibank N.A. on behalf of VTB Bank

(Deutschland) AG

VTB Bank (Deutschland) AG

Walter — Kolb — Str. 13

60594 Frankfurt

Germany

Peter Seibel / Ute Marschalk

+49/69/2168 — 274
	 
	 	 

21EX-4.1

AMENDED AND RESTATED DECLARATION

OF TRUST

by and among

WILMINGTON TRUST COMPANY,

as Delaware Trustee,

WILMINGTON TRUST COMPANY,

as Institutional Trustee,

STERLING FINANCIAL CORPORATION,

as Sponsor,

and

TITO L. LIMA and THOMAS J. PAHOLSKY,

as Administrators,

Dated as of March 22, 2007

1

TABLE OF CONTENTS

Page

	 	 	 
	ARTICLE I INTERPRETATION AND DEFINITIONS

	 
	 	 
	Section 1.1.

	 	Definitions.
	
 
	 	 

	 	 	 
	ARTICLE II ORGANIZATION

Section 2.1.

	 	

Name.
	
 
	 	 
	Section 2.2.

	 	Office.
	
 
	 	 
	Section 2.3.

	 	Purpose.
	
 
	 	 
	Section 2.4.

	 	Authority.
	
 
	 	 
	Section 2.5.

	 	Title to Property of the Trust.
	
 
	 	 
	Section 2.6.

	 	Powers and Duties of the Trustees and the Administrators.
	
 
	 	 
	Section 2.7.

	 	Prohibition of Actions by the Trust and the Institutional Trustee.
	
 
	 	 
	Section 2.8.

	 	Powers and Duties of the Institutional Trustee.
	
 
	 	 
	Section 2.9.

	 	Certain Duties and Responsibilities of the Trustees and Administrators.
	
 
	 	 
	Section 2.10.

	 	Certain Rights of Institutional Trustee.
	
 
	 	 
	Section 2.11.

	 	Delaware Trustee.
	
 
	 	 
	Section 2.12.

	 	Execution of Documents.
	
 
	 	 
	Section 2.13.

	 	Not Responsible for Recitals or Issuance of Securities.
	
 
	 	 
	Section 2.14.

	 	Duration of Trust.
	
 
	 	 
	Section 2.15.

	 	Mergers.
	
 
	 	 
	ARTICLE III SPONSOR

Section 3.1.

	 	

Sponsor’s Purchase of Common Securities.
	
 
	 	 
	Section 3.2.

	 	Responsibilities of the Sponsor.
	
 
	 	 
	Section 3.3.

	 	Expenses.
	
 
	 	 
	Section 3.4.

	 	Right to Proceed.
	
 
	 	 

	 	 	 
	ARTICLE IV INSTITUTIONAL TRUSTEE AND ADMINISTRATORS

	 
	 	 
	Section 4.1.

	 	Number of Trustees.
	
 
	 	 
	Section 4.2.

	 	Delaware Trustee; Eligibility.
	
 
	 	 
	Section 4.3.

	 	Institutional Trustee; Eligibility.
	
 
	 	 
	Section 4.4.

	 	Administrators.
	
 
	 	 
	Section 4.5.

	 	Appointment, Removal and Resignation of Trustees and Administrators.
	
 
	 	 
	Section 4.6.

	 	Vacancies Among Trustees.
	
 
	 	 
	Section 4.7.

	 	Effect of Vacancies.
	
 
	 	 
	Section 4.8.

	 	Meetings of the Trustees and the Administrators.
	
 
	 	 
	Section 4.9.

	 	Delegation of Power.
	
 
	 	 
	Section 4.10.

	 	Conversion, Consolidation or Succession to Business.
	
 
	 	 
	ARTICLE V DISTRIBUTIONS

Section 5.1.

	 	

Distributions.
	
 
	 	 

	 	 	 
	ARTICLE VI ISSUANCE OF SECURITIES

	 
	 	 
	Section 6.1.

	 	General Provisions Regarding Securities.
	
 
	 	 
	Section 6.2.

	 	Paying Agent, Transfer Agent and Registrar.
	
 
	 	 
	Section 6.3.

	 	Form and Dating.
	
 
	 	 
	Section 6.4.

	 	Mutilated, Destroyed, Lost or Stolen Certificates.
	
 
	 	 
	Section 6.5.

	 	Temporary Securities.
	
 
	 	 
	Section 6.6.

	 	Cancellation.
	
 
	 	 
	Section 6.7.

	 	Rights of Holders; Waivers of Past Defaults.
	
 
	 	 

	 	 	 
	ARTICLE VII DISSOLUTION AND TERMINATION OF TRUST

	 
	 	 
	Section 7.1.

	 	Dissolution and Termination of Trust.
	
 
	 	 

	 	 	 
	ARTICLE VIII TRANSFER OF INTERESTS

	 
	 	 
	Section 8.1.

	 	General.
	
 
	 	 
	Section 8.2.

	 	Transfer Procedures and Restrictions.
	
 
	 	 
	Section 8.3.

	 	Deemed Security Holders.
	
 
	 	 

	 	 	 
	ARTICLE IX LIMITATION OF LIABILITY OF HOLDERS OF

	 
	 	 
	SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS

	 
	 	 
	Section 9.1.

	 	Liability.
	
 
	 	 
	Section 9.2.

	 	Exculpation.
	
 
	 	 
	Section 9.3.

	 	Fiduciary Duty.
	
 
	 	 
	Section 9.4.

	 	Indemnification.
	
 
	 	 
	Section 9.5.

	 	Outside Businesses.
	
 
	 	 
	Section 9.6.

	 	Compensation; Fee.
	
 
	 	 

	 	 	 
	ARTICLE X ACCOUNTING

Section 10.1.

	 	

Fiscal Year.
	
 
	 	 
	Section 10.2.

	 	Certain Accounting Matters.
	
 
	 	 
	Section 10.3.

	 	Banking.
	
 
	 	 
	Section 10.4.

	 	Withholding.
	
 
	 	 

	 	 	 
	ARTICLE XI AMENDMENTS AND MEETINGS

	 
	 	 
	Section 11.1.

	 	Amendments.
	
 
	 	 
	Section 11.2.

	 	Meetings of the Holders of Securities; Action by Written Consent.
	
 
	 	 

	 	 	 
	ARTICLE XII REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND THE DELAWARE TRUSTEE

	 
	 	 
	Section 12.1.

	 	Representations and Warranties of Institutional Trustee.
	
 
	 	 
	Section 12.2.

	 	Representations of the Delaware Trustee.
	
 
	 	 

	 	 	 
	ARTICLE XIII MISCELLANEOUS

Section 13.1.

	 	

Notices.
	
 
	 	 
	Section 13.2.

	 	Governing Law.
	
 
	 	 
	Section 13.3.

	 	Intention of the Parties.
	
 
	 	 
	Section 13.4.

	 	Headings.
	
 
	 	 
	Section 13.5.

	 	Successors and Assigns.
	
 
	 	 
	Section 13.6.

	 	Partial Enforceability.
	
 
	 	 
	Section 13.7.

	 	Counterparts.
	
 
	 	 
	 
	 	 
	Annex I

	 	Terms of Securities
	Exhibit A-1

	 	Form of Capital Security Certificate
	Exhibit A-2

	 	Form of Common Security Certificate
	Exhibit B

	 	Specimen of Initial Debenture
	Exhibit C

	 	Placement Agreement

2

AMENDED AND RESTATED

DECLARATION OF TRUST

OF

STERLING FINANCIAL STATUTORY TRUST V

March 22, 2007

AMENDED AND RESTATED DECLARATION OF TRUST (“Declaration”) dated and effective as of
March 22, 2007, by the Trustees (as defined herein), the Administrators (as defined herein), the
Sponsor (as defined herein) and by the holders, from time to time, of undivided beneficial
interests in the Trust (as defined herein) to be issued pursuant to this Declaration;

WHEREAS, the Trustees, the Administrators and the Sponsor established Sterling Financial
Statutory Trust V (the “Trust”), a statutory trust under the Statutory Trust Act (as
defined herein) pursuant to a Declaration of Trust dated as of March 8, 2007 (the “Original
Declaration”), and a Certificate of Trust filed with the Secretary of State of the State of
Delaware on March 8, 2007, for the sole purpose of issuing and selling certain securities
representing undivided beneficial interests in the assets of the Trust and investing the proceeds
thereof in certain debentures of the Debenture Issuer (as defined herein);

WHEREAS, as of the date hereof, no interests in the Trust have been issued; and

WHEREAS, the Trustees, the Administrators and the Sponsor, by this Declaration, amend and
restate each and every term and provision of the Original Declaration;

NOW, THEREFORE, it being the intention of the parties hereto to continue the Trust as a
statutory trust under the Statutory Trust Act and that this Declaration constitutes the governing
instrument of such statutory trust, the Trustees declare that all assets contributed to the Trust
will be held in trust for the benefit of the holders, from time to time, of the securities
representing undivided beneficial interests in the assets of the Trust issued hereunder, subject to
the provisions of this Declaration. The parties hereto hereby agree as follows:

ARTICLE I

INTERPRETATION AND DEFINITIONS

Section 1.1. Definitions.  Unless the context otherwise requires:

(a)   Capitalized terms used in this Declaration but not defined in the preamble above have
the respective meanings assigned to them in this Section 1.1;

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

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

(d)   all references in this Declaration to Articles and Sections and Annexes and Exhibits are
to Articles and Sections of and Annexes and Exhibits to this Declaration unless otherwise
specified; and

(e)   a reference to the singular includes the plural and vice versa.

“Acceleration Event of Default” has the meaning set forth in the Indenture.

“Additional Interest” has the meaning set forth in the Indenture.

“Administrative Action” has the meaning set forth in paragraph 4(a) of Annex I.

“Administrators” means each of Tito L. Lima and Thomas J. Paholsky, solely in such
Person’s capacity as Administrator of the Trust created and continued hereunder and not in such
Person’s individual capacity, or such Administrator’s successor in interest in such capacity, or
any successor appointed as herein provided.

“Affiliate” has the same meaning as given to that term in Rule 405 of the Securities
Act or any successor rule thereunder.

“Authorized Officer” of a Person means any Person that is authorized to bind such
Person.

“Bankruptcy Event” means, with respect to any Person:

(a) a court having jurisdiction in the premises shall enter a decree or order for relief in
respect of such Person in an involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of such Person or for any substantial part of its
property, or ordering the winding-up or liquidation of its affairs and such decree or order shall
remain unstayed and in effect for a period of 90 consecutive days; or

(b) such Person shall commence a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, shall consent to the entry of an order for relief in
an involuntary case under any such law, or shall consent to the appointment of or taking possession
by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official)
of such Person of any substantial part of its property, or shall make any general assignment for
the benefit of creditors, or shall fail generally to pay its debts as they become due.

“Business Day” means any day other than Saturday, Sunday or any other day on which
banking institutions in New York City or Wilmington, Delaware are permitted or required by any
applicable law or executive order to close.

“Capital Securities” has the meaning set forth in paragraph 1(a) of Annex I.

“Capital Security Certificate” means a definitive Certificate in fully registered form
representing a Capital Security substantially in the form of Exhibit A-1.

“Capital Treatment Event” has the meaning set forth in paragraph 4(a) of Annex I.

“Certificate” means any certificate evidencing Securities.

“Closing Date” has the meaning set forth in the Placement Agreement.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor legislation.

“Common Securities” has the meaning set forth in paragraph 1(b) of Annex I.

“Common Security Certificate” means a definitive Certificate in fully registered form
representing a Common Security substantially in the form of Exhibit A-2.

“Company Indemnified Person” means (a) any Administrator; (b) any Affiliate of any
Administrator; (c) any officers, directors, shareholders, members, partners, employees,
representatives or agents of any Administrator; or (d) any officer, employee or agent of the Trust
or its Affiliates.

“Corporate Trust Office” means the office of the Institutional Trustee at which the
corporate trust business of the Institutional Trustee shall, at any particular time, be principally
administered, which office at the date of execution of this Declaration is located at Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-1600, Attn: Corporate Trust
Administration.

“Coupon Rate” has the meaning set forth in paragraph 2(a) of Annex I.

“Covered Person” means: (a) any Administrator, officer, director, shareholder,
partner, member, representative, employee or agent of (i) the Trust or (ii) any of the Trust’s
Affiliates; and (b) any Holder of Securities.

“Creditor” has the meaning set forth in Section 3.3.

“Debenture Issuer” means Sterling Financial Corporation, a Pennsylvania corporation,
in its capacity as issuer of the Debentures under the Indenture.

“Debenture Trustee” means Wilmington Trust Company, as trustee under the Indenture
until a successor is appointed thereunder, and thereafter means such successor trustee.

“Debentures” means the Floating Rate Junior Subordinated Deferrable Interest
Debentures due 2037 to be issued by the Debenture Issuer under the Indenture.

“Defaulted Interest” has the meaning set forth in the Indenture.

“Delaware Trustee” has the meaning set forth in Section 4.2.

“Determination Date” has the meaning set forth in paragraph 4(a) of Annex I.

“Direct Action” has the meaning set forth in Section 2.8(d).

“Distribution” means a distribution payable to Holders of Securities in accordance
with Section 5.1.

“Distribution Payment Date” has the meaning set forth in paragraph 2(b) of Annex I.

“Distribution Period” means (i) with respect to the Distribution paid on the first
Distribution Payment Date, the period beginning on (and including) the date of original issuance
and ending on (but excluding) the Distribution Payment Date in June 2007 and (ii) thereafter, with
respect to a Distribution paid on each successive Distribution Payment Date, the period beginning
on (and including) the preceding Distribution Payment Date and ending on (but excluding) such
current Distribution Payment Date.

“Distribution Rate” means, for the Distribution Period beginning on (and including)
the date of original issuance and ending on (but excluding) the Distribution Payment Date in June
2007, the rate per annum of 7.00%, and for each Distribution Period beginning on or after the
Distribution Payment Date in June 2007, the Coupon Rate for such Distribution Period.

“Event of Default” means any one of the following events (whatever the reason for such
event 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 an Indenture Event of Default; or

(b) default by the Trust in the payment of any Redemption Price or Special Redemption Price of
any Security when it becomes due and payable; or

(c) default in the performance, or breach, in any material respect, of any covenant or
warranty of the Institutional Trustee in this Declaration (other than those specified in clause (a)
or (b) above) and continuation of such default or breach for a period of 60 days after there has
been given, by registered or certified mail to the Institutional Trustee and to the Sponsor by the
Holders of at least 25% in aggregate liquidation amount of the outstanding Capital 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; or

(d) the occurrence of a Bankruptcy Event with respect to the Institutional Trustee if a
successor Institutional Trustee has not been appointed within 90 days thereof.

“Extension Period” has the meaning set forth in paragraph 2(b) of Annex I.

“Federal Reserve” has the meaning set forth in paragraph 3 of Annex I.

“Fiduciary Indemnified Person” shall mean each of the Institutional Trustee (including
in its individual capacity), the Delaware Trustee (including in its individual capacity), any
Affiliate of the Institutional Trustee or Delaware Trustee and any officers, directors,
shareholders, members, partners, employees, representatives, custodians, nominees or agents of the
Institutional Trustee or Delaware Trustee.

“Fiscal Year” has the meaning set forth in Section 10.1.

“Guarantee” means the guarantee agreement to be dated as of the Closing Date, of the
Sponsor in respect of the Capital Securities.

“Holder” means a Person in whose name a Certificate representing a Security is
registered, such Person being a beneficial owner within the meaning of the Statutory Trust Act.

“Indemnified Person” means a Company Indemnified Person or a Fiduciary Indemnified
Person.

“Indenture” means the Indenture dated as of the Closing Date, between the Debenture
Issuer and the Debenture Trustee, and any indenture supplemental thereto pursuant to which the
Debentures are to be issued, as such Indenture and any supplemental indenture may be amended,
supplemented or otherwise modified from time to time.

“Indenture Event of Default” means an “Event of Default” as defined in the Indenture.

“Institutional Trustee” means the Trustee meeting the eligibility requirements set
forth in Section 4.3.

“Interest” means any interest due on the Debentures including any Additional Interest
and Defaulted Interest.

“Investment Company” means an investment company as defined in the Investment Company
Act.

“Investment Company Act” means the Investment Company Act of 1940, as amended from
time to time, or any successor legislation.

“Investment Company Event” has the meaning set forth in paragraph 4(a) of Annex I.

“Liquidation” has the meaning set forth in paragraph 3 of Annex I.

“Liquidation Distribution” has the meaning set forth in paragraph 3 of Annex I.

“Majority in liquidation amount of the Securities” means Holder(s) of outstanding
Securities voting together as a single class or, as the context may require, Holders of outstanding
Capital Securities or Holders of outstanding Common Securities voting separately as a class, who
are the record owners of more than 50% of the aggregate liquidation amount (including the stated
amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of all outstanding
Securities of the relevant class.

“Maturity Date” has the meaning set forth in paragraph 4(a) of Annex I.

“Officers’ Certificates” means, with respect to any Person, a certificate signed by
two Authorized Officers of such Person. Any Officers’ Certificate delivered with respect to
compliance with a condition or covenant providing for it in this Declaration shall include:

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

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

(c) a statement that each 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 covenant or condition has been complied with; and

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

“OTS” has the meaning set forth in paragraph 3 of Annex I.

“Paying Agent” has the meaning specified in Section 6.2.

“Person” means a legal person, including any individual, corporation, estate,
partnership, joint venture, association, joint stock company, limited liability company, trust,
unincorporated association, or government or any agency or political subdivision thereof, or any
other entity of whatever nature.

“Placement Agreement” means the Placement Agreement relating to the offering and sale
of Capital Securities in the form of Exhibit C.

“Property Account” has the meaning set forth in Section 2.8(c).

“Pro Rata” has the meaning set forth in paragraph 8 of Annex I.

“Quorum” means a majority of the Administrators or, if there are only two
Administrators, both of them.

“Redemption Date” has the meaning set forth in paragraph 4(a) of Annex I.

“Redemption/Distribution Notice” has the meaning set forth in paragraph 4(e) of
Annex I.

“Redemption Price” has the meaning set forth in paragraph 4(a) of Annex I.

“Registrar” has the meaning set forth in Section 6.2.

“Relevant Trustee” has the meaning set forth in Section 4.5(a).

“Responsible Officer” means, with respect to the Institutional Trustee, any officer
within the Corporate Trust Office of the Institutional Trustee, including any vice-president, any
assistant vice-president, any assistant secretary, the treasurer, any assistant treasurer, any
trust officer or other officer of the Corporate Trust Office of the Institutional Trustee
customarily performing functions similar to those performed by any of the above designated officers
and also means, with respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of that officer’s knowledge of and familiarity with the particular
subject.

“Restricted Securities Legend” has the meaning set forth in Section 8.2(b).

“Rule 3a-5” means Rule 3a-5 under the Investment Company Act.

“Rule 3a-7” means Rule 3a-7 under the Investment Company Act.

“Securities” means the Common Securities and the Capital Securities.

“Securities Act” means the Securities Act of 1933, as amended from time to time, or
any successor legislation.

“Special Event” has the meaning set forth in paragraph 4(a) of Annex I.

“Special Redemption Date” has the meaning set forth in paragraph 4(a) of Annex I.

“Special Redemption Price” has the meaning set forth in paragraph 4(a) of Annex I.

“Sponsor” means Sterling Financial Corporation, a Pennsylvania corporation, or any
successor entity in a merger, consolidation or amalgamation, in its capacity as sponsor of the
Trust.

“Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. §§
3801, et seq. as may be amended from time to time.

“Successor Entity” has the meaning set forth in Section 2.15(b).

“Successor Delaware Trustee” has the meaning set forth in Section 4.5(e).

“Successor Institutional Trustee” has the meaning set forth in Section 4.5(b).

“Successor Securities” has the meaning set forth in Section 2.15(b).

“Super Majority” has the meaning set forth in paragraph 5(b) of Annex I.

“Tax Event” has the meaning set forth in paragraph 4(a) of Annex I.

“10% in liquidation amount of the Securities” means Holder(s) of outstanding
Securities voting together as a single class or, as the context may require, Holders of outstanding
Capital Securities or Holders of outstanding Common Securities voting separately as a class, who
are the record owners of 10% or more of the aggregate liquidation amount (including the stated
amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of all outstanding
Securities of the relevant class.

“3-Month LIBOR” has the meaning set forth in paragraph 4(a) of Annex I.

“Transfer Agent” has the meaning set forth in Section 6.2.

“Treasury Regulations” means the income tax regulations, including temporary and
proposed regulations, promulgated under the Code by the United States Treasury, as such regulations
may be amended from time to time (including corresponding provisions of succeeding regulations).

“Trust Property” means (a) the Debentures, (b) any cash on deposit in, or owing to,
the Property 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 Institutional Trustee
pursuant to the trusts of this Declaration.

“Trustee” or “Trustees” means each Person who has signed this Declaration as a
trustee, so long as such Person shall continue in office in accordance with the terms hereof, and
all other Persons who may from time to time be duly appointed, qualified and serving as Trustees in
accordance with the provisions hereof, and references herein to a Trustee or the Trustees shall
refer to such Person or Persons solely in their capacity as trustees hereunder.

“U.S. Person” means a United States Person as defined in Section 7701(a)(30) of the
Code.

ARTICLE II

ORGANIZATION

Section 2.1. Name.  The Trust is named “Sterling Financial Statutory Trust V,” as such
name may be modified from time to time by the Administrators following written notice to the
Holders of the Securities. The Trust’s activities may be conducted under the name of the Trust or
any other name deemed advisable by the Administrators.

Section 2.2. Office.  The address of the principal office of the Trust is c/o
Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19890-1600. On at least 10 Business Days written notice to the Holders of the Securities, the
Administrators may designate another principal office, which shall be in a state of the United
States or in the District of Columbia.

Section 2.3. Purpose.  The exclusive purposes and functions of the Trust are (a) to
issue and sell the Securities representing undivided beneficial interests in the assets of the
Trust, (b) to invest the gross proceeds from such sale to acquire the Debentures, (c) to facilitate
direct investment in the assets of the Trust through issuance of the Common Securities and the
Capital Securities and (d) except as otherwise limited herein, to engage in only those other
activities necessary or incidental thereto. The Trust shall not borrow money, issue debt or
reinvest proceeds derived from investments, pledge any of its assets, or otherwise undertake (or
permit to be undertaken) any activity that would cause the Trust not to be classified for United
States federal income tax purposes as a grantor trust.

Section 2.4. Authority.  Except as specifically provided in this Declaration, the
Institutional Trustee shall have exclusive and complete authority to carry out the purposes of the
Trust. An action taken by a Trustee in accordance with its powers shall constitute the act of and
serve to bind the Trust. In dealing with the Trustees acting on behalf of the Trust, no Person
shall be required to inquire into the authority of the Trustees to bind the Trust. Persons dealing
with the Trust are entitled to rely conclusively on the power and authority of the Trustees as set
forth in this Declaration. The Administrators shall have only those ministerial duties set forth
herein with respect to accomplishing the purposes of the Trust and are not intended to be trustees
or fiduciaries with respect to the Trust or the Holders. The Institutional Trustee shall have the
right, but shall not be obligated except as provided in Section 2.6, to perform those duties
assigned to the Administrators.

Section 2.5. Title to Property of the Trust.  Except as provided in Section 2.8 with
respect to the Debentures and the Property Account or as otherwise provided in this Declaration,
legal title to all assets of the Trust shall be vested in the Trust. The Holders shall not have
legal title to any part of the assets of the Trust, but shall have an undivided beneficial interest
in the assets of the Trust.

Section 2.6. Powers and Duties of the Trustees and the Administrators.

(a)   The Trustees and the Administrators shall conduct the affairs of the Trust in accordance
with the terms of this Declaration. Subject to the limitations set forth in paragraph (b) of this
Section, and in accordance with the following provisions (i) and (ii), the Trustees and the
Administrators shall have the authority to enter into all transactions and agreements determined by
the Institutional Trustee to be appropriate in exercising the authority, express or implied,
otherwise granted to the Trustees or the Administrators, as the case may be, under this
Declaration, and to perform all acts in furtherance thereof, including without limitation, the
following:

(i)   Each Administrator shall 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 Securities;

(B)   to cause the Trust to enter into, and to execute and deliver on behalf of
the Trust, such agreements as may be necessary or desirable in connection with the
purposes and function of the Trust, including agreements with the Paying Agent;

(C)   ensuring compliance with the Securities Act, applicable state securities
or blue sky laws;

(D)   the sending of notices (other than notices of default), and other
information regarding the Securities and the Debentures to the Holders in accordance
with this Declaration;

(E)   the consent to the appointment of a Paying Agent, Transfer Agent and
Registrar in accordance with this Declaration, which consent shall not be
unreasonably withheld or delayed;

(F)   execution and delivery of the Securities in accordance with this
Declaration;

(G)   execution and delivery of closing certificates pursuant to the Placement
Agreement and the application for a taxpayer identification number;

(H)   unless otherwise determined by the Holders of a Majority in liquidation
amount of the Securities or as otherwise required by the Statutory Trust Act, to
execute on behalf of the Trust (either acting alone or together with any or all of
the Administrators) any documents that the Administrators have the power to execute
pursuant to this Declaration;

(I)   the taking of any action incidental to the foregoing as the Institutional
Trustee may from time to time determine is necessary or advisable to give effect to
the terms of this Declaration for the benefit of the Holders (without consideration
of the effect of any such action on any particular Holder);

(J)   to establish a record date with respect to all actions to be taken
hereunder that require a record date be established, including Distributions, voting
rights, redemptions and exchanges, and to issue relevant notices to the Holders of
Capital Securities and Holders of Common Securities as to such actions and
applicable record dates; and

(K)   to duly prepare and file all applicable tax returns and tax information
reports that are required to be filed with respect to the Trust on behalf of the
Trust.

(ii)   As among the Trustees and the Administrators, the Institutional Trustee shall
have the power, duty and authority to act on behalf of the Trust with respect to the
following matters:

(A)   the establishment of the Property Account;

(B)   the receipt of the Debentures;

(C)   the collection of interest, principal and any other payments made in
respect of the Debentures in the Property Account;

(D)   the distribution through the Paying Agent of amounts owed to the Holders
in respect of the Securities;

(E)   the exercise of all of the rights, powers and privileges of a holder of
the Debentures;

(F)   the sending of notices of default and other information regarding the
Securities and the Debentures to the Holders in accordance with this Declaration;

(G)   the distribution of the Trust Property in accordance with the terms of
this Declaration;

(H)   to the extent provided in this Declaration, the winding up of the affairs
of and liquidation of the Trust and the preparation, execution and filing of the
certificate of cancellation with the Secretary of State of the State of Delaware;

(I)   after any Event of Default (provided that such Event of Default
is not by or with respect to the Institutional Trustee) the taking of any action
incidental to the foregoing as the Institutional Trustee may from time to time
determine is necessary or advisable to give effect to the terms of this Declaration
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); and

(J)   to take all action that may be necessary for the preservation and the
continuation of the Trust’s valid existence, rights, franchises and privileges as a
statutory trust under the laws of the State of Delaware.

(iii)   The Institutional Trustee shall have the power and authority to act on behalf
of the Trust with respect to any of the duties, liabilities, powers or the authority of the
Administrators set forth in Section 2.6(a)(i)(D), (E) and (F) herein but shall not have a
duty to do any such act unless specifically requested to do so in writing by the Sponsor,
and shall then be fully protected in acting pursuant to such written request; and in the
event of a conflict between the action of the Administrators and the action of the
Institutional Trustee, the action of the Institutional Trustee shall prevail.

(b)   So long as this Declaration remains in effect, the Trust (or the Trustees or
Administrators acting on behalf of the Trust) shall not undertake any business, activities or
transaction except as expressly provided herein or contemplated hereby. In particular, neither the
Trustees nor the Administrators may cause the Trust to (i) acquire any investments or engage in any
activities not authorized by this Declaration, (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) take any action that would reasonably be
expected (x) to cause the Trust to fail or cease to qualify as a “grantor trust” for United States
federal income tax purposes or (y) to require the trust to register as an Investment Company under
the Investment Company Act, (iv) incur any indebtedness for borrowed money or issue any other debt
or (v) take or consent to any action that would result in the placement of a lien on any of the
Trust Property. The Institutional Trustee shall, at the sole cost and expense of the Trust, defend
all claims and demands of all Persons at any time claiming any lien on any of the Trust Property
adverse to the interest of the Trust or the Holders in their capacity as Holders.

(c)   In connection with the issuance and sale of the Capital Securities, the Sponsor 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 Sponsor in furtherance of the following prior to
the date of this Declaration are hereby ratified and confirmed in all respects):

(i)   the taking of any action necessary to obtain an exemption from the Securities
Act;

(ii)   the determination of the States in which to take appropriate action to qualify
or register for sale all or part of the Capital Securities and the determination of any and
all such acts, other than actions which must be taken by or on behalf of the Trust, and the
advice to the Administrators of actions they must take on behalf of the Trust, and the
preparation for execution and filing of any documents to be executed and filed by the Trust
or on behalf of the Trust, as the Sponsor deems necessary or advisable in order to comply
with the applicable laws of any such States in connection with the sale of the Capital
Securities;

(iii)   the negotiation of the terms of, and the execution and delivery of, the
Placement Agreement providing for the sale of the Capital Securities; and

(iv)   the taking of any other actions necessary or desirable to carry out any of the
foregoing activities.

(d)   Notwithstanding anything herein to the contrary, the Administrators and the Holders of a
Majority in liquidation amount of the Common Securities are authorized and directed to conduct the
affairs of the Trust and to operate the Trust so that the Trust will not (i) be deemed to be an
Investment Company required to be registered under the Investment Company Act, and (ii) fail to be
classified as a “grantor trust” for United States federal income tax purposes. The Administrators
and the Holders of a Majority in liquidation amount of the Common Securities shall not take any
action inconsistent with the treatment of the Debentures as indebtedness of the Debenture Issuer
for United States federal income tax purposes. In this connection, the Administrators and the
Holders of a Majority in liquidation amount of the Common Securities are authorized to take any
action, not inconsistent with applicable laws, the Certificate of Trust or this Declaration, as
amended from time to time, that each of the Administrators and the Holders of a Majority in
liquidation amount of the Common Securities determines in their discretion to be necessary or
desirable for such purposes.

(e)   All expenses incurred by the Administrators or the Trustees pursuant to this Section 2.6
shall be reimbursed by the Sponsor, and the Trustees and the Administrators shall have no
obligations with respect to such expenses (for purposes of clarification, this Section 2.6(e) does
not contemplate the payment by the Sponsor of acceptance or annual administration fees owing to the
Trustees under this Declaration or the fees and expenses of the Trustees’ counsel in connection
with the closing of the transactions contemplated by this Declaration).

(f)   The assets of the Trust shall consist of the Trust Property.

(g)   Legal title to all Trust Property shall be vested at all times in the Institutional
Trustee (in its capacity as such) and shall be held and administered by the Institutional Trustee
and the Administrators for the benefit of the Trust in accordance with this Declaration.

(h)   If the Institutional Trustee or any Holder has instituted any proceeding to enforce any
right or remedy under this Declaration and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Institutional Trustee or to such Holder, then
and in every such case the Sponsor, the Institutional Trustee and the Holders shall, subject to any
determination in such proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of the Institutional Trustee and the Holders
shall continue as though no such proceeding had been instituted.

Section 2.7. Prohibition of Actions by the Trust and the Institutional Trustee.

(a)   The Trust shall not, and the Institutional Trustee shall cause the Trust not to, engage
in any activity other than as required or authorized by this Declaration. In particular, the Trust
shall not and the Institutional Trustee shall cause the Trust not to:

(i)   invest any proceeds received by the Trust from holding the Debentures, but shall
distribute all such proceeds to Holders of the Securities pursuant to the terms of this
Declaration and of the Securities;

(ii)   acquire any assets other than as expressly provided herein;

(iii)   possess Trust Property for other than a Trust purpose;

(iv)   make any loans or incur any indebtedness other than loans represented by the
Debentures;

(v)   possess any power or otherwise act in such a way as to vary the Trust assets or
the terms of the Securities in any way whatsoever other than as expressly provided herein;

(vi)   issue any securities or other evidences of beneficial ownership of, or
beneficial interest in, the Trust other than the Securities;

(vii)   carry on any “trade or business” as that phrase is used in the Code; or

(viii)   other than as provided in this Declaration (including Annex I), (A) direct the
time, method and place of exercising any trust or power conferred upon the Debenture Trustee
with respect to the Debentures, (B) waive any past default that is waivable under the
Indenture, (C) exercise any right to rescind or annul any declaration that the principal of
all the Debentures shall be due and payable, or (D) consent to any amendment, modification
or termination of the Indenture or the Debentures where such consent shall be required
unless the Trust shall have received a written opinion of counsel to the effect that such
modification will not cause the Trust to cease to be classified as a “grantor trust” for
United States federal income tax purposes.

Section 2.8. Powers and Duties of the Institutional Trustee.

(a)   The legal title to the Debentures shall be owned by and held of record in the name of
the Institutional Trustee in trust for the benefit of the Trust and the Holders of the Securities.
The right, title and interest of the Institutional Trustee to the Debentures shall vest
automatically in each Person who may hereafter be appointed as Institutional Trustee in accordance
with Section 4.5. Such vesting and cessation of title shall be effective whether or not
conveyancing documents with regard to the Debentures have been executed and delivered.

(b)   The Institutional Trustee shall not transfer its right, title and interest in the
Debentures to the Administrators or to the Delaware Trustee.

(c)   The Institutional Trustee shall:

(i)   establish and maintain a segregated non-interest bearing trust account (the
“Property Account”) in the name of and under the exclusive control of the
Institutional Trustee, and maintained in the Institutional Trustee’s trust department, on
behalf of the Holders of the Securities and, upon the receipt of payments of funds made in
respect of the Debentures held by the Institutional Trustee, deposit such funds into the
Property Account and make payments, or cause the Paying Agent to make payments, to the
Holders of the Capital Securities and Holders of the Common Securities from the Property
Account in accordance with Section 5.1. Funds in the Property Account shall be held
uninvested until disbursed in accordance with this Declaration;

(ii)   engage in such ministerial activities as shall be necessary or appropriate to
effect the redemption of the Capital Securities and the Common Securities to the extent the
Debentures are redeemed or mature; and

(iii)   upon written notice of distribution issued by the Administrators in accordance
with the terms of the Securities, engage in such ministerial activities as shall be
necessary or appropriate to effect the distribution of the Debentures to Holders of
Securities upon the occurrence of certain circumstances pursuant to the terms of the
Securities.

(d)   The Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate,
resort to legal action with respect to, or otherwise adjust claims or demands of or against, the
Trust which arises out of or in connection with an Event of Default of which a Responsible Officer
of the Institutional Trustee has actual knowledge or arises out of the Institutional Trustee’s
duties and obligations under this Declaration; provided, however, that if an Event
of Default has occurred and is continuing and such event is attributable to the failure of the
Debenture Issuer to pay interest or principal on the Debentures on the date such interest or
principal is otherwise payable (or in the case of redemption, on the redemption date), then a
Holder of the Capital Securities may directly institute a proceeding for enforcement of payment to
such Holder of the principal of or interest on the Debentures having a principal amount equal to
the aggregate liquidation amount of the Capital Securities of such Holder (a “Direct
Action”) on or after the respective due date specified in the Debentures. In connection with
such Direct Action, the rights of the Holders of the Common Securities will be subrogated to the
rights of such Holder of the Capital Securities to the extent of any payment made by the Debenture
Issuer to such Holder of the Capital Securities in such Direct Action; provided,
however, that no Holder of the Common Securities may exercise such right of subrogation so
long as an Event of Default with respect to the Capital Securities has occurred and is continuing.

(e)   The Institutional Trustee shall continue to serve as a Trustee until either:

(i)   the Trust has been completely liquidated and the proceeds of the liquidation
distributed to the Holders of the Securities pursuant to the terms of the Securities and
this Declaration; or

(ii)   a Successor Institutional Trustee has been appointed and has accepted that
appointment in accordance with Section 4.5.

(f)   The Institutional Trustee shall have the legal power to exercise all of the rights,
powers and privileges of a Holder of the Debentures under the Indenture and, if an Event of Default
occurs and is continuing, the Institutional Trustee may, for the benefit of Holders of the
Securities, enforce its rights as holder of the Debentures subject to the rights of the Holders
pursuant to this Declaration (including Annex I) and the terms of the Securities.

The Institutional Trustee must exercise the powers set forth in this Section 2.8 in a manner
that is consistent with the purposes and functions of the Trust set out in Section 2.3, and the
Institutional Trustee shall not take any action that is inconsistent with the purposes and
functions of the Trust set out in Section 2.3.

Section 2.9. Certain Duties and Responsibilities of the Trustees and Administrators.

(a)   The Institutional Trustee, before the occurrence of any Event of Default and after the
curing or waiving of all such Events of Default that may have occurred, shall undertake to perform
only such duties as are specifically set forth in this Declaration and no implied covenants shall
be read into this Declaration against the Institutional Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 6.7), the Institutional Trustee
shall exercise such of the rights and powers vested in it by this Declaration, and use the same
degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

(b)   The duties and responsibilities of the Trustees and the Administrators shall be as
provided by this Declaration. Notwithstanding the foregoing, no provision of this Declaration
shall require any Trustee or Administrator to expend or risk their own funds or otherwise incur any
financial liability in the performance of any of their duties hereunder, or in the exercise of any
of their rights or powers if it shall have reasonable grounds to believe that repayment of such
funds or adequate protection against such risk of liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Declaration relating to the
conduct or affecting the liability of or affording protection to the Trustees or Administrators
shall be subject to the provisions of this Article. Nothing in this Declaration shall be construed
to relieve an Administrator or a Trustee from liability for its own negligent act, its own
negligent failure to act, or its own willful misconduct. To the extent that, at law or in equity,
a Trustee or an Administrator has duties and liabilities relating to the Trust or to the Holders,
such Trustee or such Administrator shall not be liable to the Trust or to any Holder for such
Trustee’s or such Administrator’s good faith reliance on the provisions of this Declaration. The
provisions of this Declaration, to the extent that they restrict the duties and liabilities of the
Administrators or the Trustee otherwise existing at law or in equity, are agreed by the Sponsor and
the Holders to replace such other duties and liabilities of the Administrators or the Trustees.

(c)   All payments made by the Institutional Trustee or a Paying Agent in respect of the
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
Institutional Trustee or a Paying Agent to make payments in accordance with the terms hereof. Each
Holder, by its acceptance of a 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 and the Administrators are not personally liable to it for any
amount distributable in respect of any Security or for any other liability in respect of any
Security. This Section 2.9(c) does not limit the liability of the Trustees expressly set forth
elsewhere in this Declaration.

(d)   The Institutional Trustee shall not be liable for its own acts or omissions hereunder
except as a result of its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that:

(i)   the Institutional Trustee shall not be liable for any error of judgment made in
good faith by an Authorized Officer of the Institutional Trustee, unless it shall be proved
that the Institutional Trustee was negligent in ascertaining the pertinent facts;

(ii)   the Institutional Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of the Holders
of not less than a Majority in liquidation amount of the Capital Securities or the Common
Securities, as applicable, relating to the time, method and place of conducting any
proceeding for any remedy available to the Institutional Trustee, or exercising any trust or
power conferred upon the Institutional Trustee under this Declaration;

(iii)   the Institutional Trustee’s sole duty with respect to the custody, safekeeping
and physical preservation of the Debentures and the Property Account shall be to deal with
such property in a similar manner as the Institutional Trustee deals with similar property
for its fiduciary accounts generally, subject to the protections and limitations on
liability afforded to the Institutional Trustee under this Declaration;

(iv)   the Institutional Trustee shall not be liable for any interest on any money
received by it except as it may otherwise agree in writing with the Sponsor; and money held
by the Institutional Trustee need not be segregated from other funds held by it except in
relation to the Property Account maintained by the Institutional Trustee pursuant to Section
2.8(c)(i) and except to the extent otherwise required by law; and

(v)   the Institutional Trustee shall not be responsible for monitoring the compliance
by the Administrators or the Sponsor with their respective duties under this Declaration,
nor shall the Institutional Trustee be liable for any default or misconduct of the
Administrators or the Sponsor.

Section 2.10. Certain Rights of Institutional Trustee.  Subject to the provisions of
Section 2.9:

(a)   the Institutional Trustee may conclusively rely and shall fully be protected in acting
or refraining from acting in good faith upon any resolution, opinion of counsel, certificate,
written representation of a Holder or transferee, certificate of auditors or any other 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, sent or presented by the proper party or parties;

(b)   if (i) in performing its duties under this Declaration, the Institutional Trustee is
required to decide between alternative courses of action, (ii) in construing any of the provisions
of this Declaration, the Institutional Trustee finds the same ambiguous or inconsistent with any
other provisions contained herein, or (iii) the Institutional Trustee is unsure of the application
of any provision of this Declaration, then, except as to any matter as to which the Holders of
Capital Securities are entitled to vote under the terms of this Declaration, the Institutional
Trustee may deliver a notice to the Sponsor requesting the Sponsor’s written instructions as to the
course of action to be taken and the Institutional Trustee shall take such action, or refrain from
taking such action, as the Institutional Trustee shall be instructed in writing, in which event the
Institutional Trustee shall have no liability except for its own negligence or willful misconduct;

(c)   any direction or act of the Sponsor or the Administrators contemplated by this
Declaration shall be sufficiently evidenced by an Officers’ Certificate;

(d)   whenever in the administration of this Declaration, the Institutional Trustee shall deem
it desirable that a matter be proved or established before undertaking, suffering or omitting any
action hereunder, the Institutional Trustee (unless other evidence is herein specifically
prescribed) may request and conclusively rely upon an Officers’ Certificate as to factual matters
which, upon receipt of such request, shall be promptly delivered by the Sponsor or the
Administrators;

(e)   the Institutional 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 rerecording, refiling or reregistration thereof;

(f)   the Institutional Trustee may consult with counsel of its selection (which counsel may
be counsel to the Sponsor or any of its Affiliates) 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
Institutional Trustee shall have the right at any time to seek instructions concerning the
administration of this Declaration from any court of competent jurisdiction;

(g)   the Institutional Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Declaration at the request or direction of any of the Holders pursuant
to this Declaration, unless such Holders shall have offered to the Institutional Trustee security
or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might
be incurred by it in compliance with such request or direction; provided, that nothing
contained in this Section 2.10(g) shall be taken to relieve the Institutional Trustee, subject to
Section 2.9(b), upon the occurrence of an Event of Default (that has not been cured or waived
pursuant to Section 6.7), to exercise such of the rights and powers vested in it by this
Declaration, and use the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own affairs;

(h)   the Institutional 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, consent, order, approval, bond, debenture, note or other evidence of indebtedness or other
paper or document, unless requested in writing to do so by one or more Holders, but the
Institutional Trustee may make such further inquiry or investigation into such facts or matters as
it may see fit;

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

(j)   whenever in the administration of this Declaration the Institutional Trustee shall deem
it desirable to receive instructions with respect to enforcing any remedy or right or taking any
other action hereunder the Institutional Trustee (i) may request instructions from the Holders of
the Capital Securities which instructions may only be given by the Holders of the same proportion
in liquidation amount of the Capital Securities as would be entitled to direct the Institutional
Trustee under the terms of the Capital Securities 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 fully protected in acting in accordance with such
instructions;

(k)   except as otherwise expressly provided in this Declaration, the Institutional Trustee
shall not be under any obligation to take any action that is discretionary under the provisions of
this Declaration;

(l)   when the Institutional Trustee incurs expenses or renders services in connection with a
Bankruptcy Event, such expenses (including the fees and expenses of its 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)   the Institutional Trustee shall not be charged with knowledge of an Event of Default
unless a Responsible Officer of the Institutional Trustee obtains actual knowledge of such event or
the Institutional Trustee receives written notice of such event from any Holder, the Sponsor or the
Debenture Trustee;

(n)   any action taken by the Institutional Trustee or its agents hereunder shall bind the
Trust and the Holders of the Securities, and the signature of the Institutional Trustee or its
agents alone shall be sufficient and effective to perform any such action and no third party shall
be required to inquire as to the authority of the Institutional Trustee to so act or as to its
compliance with any of the terms and provisions of this Declaration, both of which shall be
conclusively evidenced by the Institutional Trustee’s or its agent’s taking such action; and

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

Section 2.11. Delaware Trustee.  Notwithstanding any other provision of this
Declaration other than Section 4.1, the Delaware Trustee shall not be entitled to exercise any
powers, nor shall the Delaware Trustee have any of the duties and responsibilities of any of the
Trustees or the Administrators described in this Declaration (except as may be required under the
Statutory Trust Act). Except as set forth in Section 4.1, the Delaware Trustee shall be a Trustee
for the sole and limited purpose of fulfilling the requirements of § 3807 of the Statutory Trust
Act.

Section 2.12. Execution of Documents.  Unless otherwise determined in writing by the
Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the
Institutional Trustee, or any one or more of the Administrators, as the case may be, is authorized
to execute on behalf of the Trust any documents that the Trustees or the Administrators, as the
case may be, have the power and authority to execute pursuant to Section 2.6.

Section 2.13. Not Responsible for Recitals or Issuance of Securities.  The recitals
contained in this Declaration and the Securities shall be taken as the statements of the Sponsor,
and the Trustees do not assume any responsibility for their correctness. The Trustees make no
representations as to the value or condition of the property of the Trust or any part thereof. The
Trustees make no representations as to the validity or sufficiency of this Declaration, the
Debentures or the Securities.

Section 2.14. Duration of Trust.  The Trust, unless earlier dissolved pursuant to the
provisions of Article VII hereof, shall be in existence for 35 years from the Closing Date.

Section 2.15. Mergers.

(a)   The Trust may not 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 corporation
or other body, except as described in Section 2.15(b) and (c) and except in connection with the
liquidation of the Trust and the distribution of the Debentures to Holders of Securities pursuant
to Section 7.1(a)(iv) of the Declaration or Section 4 of Annex I.

(b)   The Trust may, with the consent of the Institutional Trustee and without the consent of
the Holders of the Capital Securities, consolidate, amalgamate, merge with or into, or be replaced
by a trust organized as such under the laws of any state; provided that:

(i)   if the Trust is not the surviving entity, such successor entity (the
“Successor Entity”) either:

(A)   expressly assumes all of the obligations of the Trust under the
Securities; or

(B)   substitutes for the Securities other securities having substantially the
same terms as the Securities (the “Successor Securities”) so that the
Successor Securities rank the same as the Securities rank with respect to
Distributions and payments upon Liquidation, redemption and otherwise;

(ii)   the Sponsor expressly appoints a trustee of the Successor Entity that possesses
substantially the same powers and duties as the Institutional Trustee as the Holder of the
Debentures;

(iii)   such merger, consolidation, amalgamation or replacement does not adversely
affect the rights, preferences and privileges of the Holders of the Securities (including
any Successor Securities) in any material respect;

(iv)   the Institutional Trustee receives written confirmation from Moody’s Investor
Services, Inc. and any other nationally recognized statistical rating organization that
rates securities issued by the initial purchaser of the Capital Securities that it will not
reduce or withdraw the rating of any such securities because of such merger, conversion,
consolidation, amalgamation or replacement;

(v)   such Successor Entity has a purpose substantially identical to that of the Trust;

(vi)   prior to such merger, consolidation, amalgamation or replacement, the Trust has
received an opinion of a nationally recognized independent counsel to the Trust experienced
in such matters to the effect that:

(A)   such merger, consolidation, amalgamation or replacement does not
adversely affect the rights, preferences and privileges of the Holders of the
Securities (including any Successor Securities) in any material respect;

(B)   following such merger, consolidation, amalgamation or replacement,
neither the Trust nor the Successor Entity will be required to register as an
Investment Company; and

(C)   following such merger, consolidation, amalgamation or replacement, the
Trust (or the Successor Entity) will continue to be classified as a “grantor trust”
for United States federal income tax purposes;

(vii)   the Sponsor guarantees the obligations of such Successor Entity under the
Successor Securities at least to the extent provided by the Guarantee;

(viii)   the Sponsor owns 100% of the common securities of any Successor Entity; and

(ix)   prior to such merger, consolidation, amalgamation or replacement, the
Institutional Trustee shall have received an Officers’ Certificate of the Administrators and
an opinion of counsel, each to the effect that all conditions precedent under this Section
2.15(b) to such transaction have been satisfied.

(c)   Notwithstanding Section 2.15(b), the Trust shall not, except with the consent of Holders
of 100% in aggregate liquidation amount of the Securities, consolidate, amalgamate, merge with or
into, or be replaced by any other entity or permit any other entity to consolidate, amalgamate,
merge with or into, or replace it if such consolidation, amalgamation, merger or replacement would
cause the Trust or Successor Entity to be classified as other than a grantor trust for United
States federal income tax purposes.

ARTICLE III

SPONSOR

Section 3.1. Sponsor’s Purchase of Common Securities.  On the Closing Date, the
Sponsor will purchase all of the Common Securities issued by the Trust in an amount at least equal
to 3% of the capital of the Trust, at the same time as the Capital Securities are sold.

Section 3.2. Responsibilities of the Sponsor.  In connection with the issue and sale
of the Capital Securities, the Sponsor shall have the exclusive right and responsibility to engage
in, or direct the Administrators to engage in, the following activities:

(a)   to determine the States in which to take appropriate action to qualify the Trust or to
qualify or register for sale all or part of the Capital Securities and to do any and all such acts,
other than actions which must be taken by the Trust, and advise the Trust of actions it must take,
and prepare for execution and filing any documents to be executed and filed by the Trust, as the
Sponsor deems necessary or advisable in order to comply with the applicable laws of any such
States, to protect the limited liability of the Holders of the Capital Securities or to enable the
Trust to effect the purposes for which it was created; and

(b)   to negotiate the terms of and/or execute on behalf of the Trust, the Placement Agreement
and other related agreements providing for the sale of the Capital Securities.

Section 3.3. Expenses.  In connection with the offering, sale and issuance of the
Debentures to the Trust and in connection with the sale of the Securities by the Trust, the
Sponsor, in its capacity as Debenture Issuer, shall:

(a)   pay all reasonable costs and expenses owing to the Debenture Trustee pursuant to
Section 6.6 of the Indenture;

(b)   be responsible for and shall pay all debts and obligations (other than with respect to
the Securities) and all costs and expenses of the Trust, the offering, sale and issuance of the
Securities (including fees to the placement agents in connection therewith), the costs and expenses
(including reasonable counsel fees and expenses) of the Institutional Trustee and the
Administrators, the costs and expenses relating to the operation of the Trust, including, without
limitation, costs and expenses of accountants, attorneys, statistical or bookkeeping services,
expenses for printing and engraving and computing or accounting equipment, Paying Agents,
Registrars, Transfer Agents, duplicating, travel and telephone and other telecommunications
expenses and costs and expenses incurred in connection with the acquisition, financing, and
disposition of Trust assets and the enforcement by the Institutional Trustee of the rights of the
Holders (for purposes of clarification, this Section 3.3(b) does not contemplate the payment by the
Sponsor of acceptance or annual administration fees owing to the Trustees pursuant to the services
to be provided by the Trustees under this Declaration or the fees and expenses of the Trustees’
counsel in connection with the closing of the transactions contemplated by this Declaration); and

(c)   pay any and all taxes (other than United States withholding taxes attributable to the
Trust or its assets) and all liabilities, costs and expenses with respect to such taxes of the
Trust.

The Sponsor’s obligations under this Section 3.3 shall be for the benefit of, and shall be
enforceable by, any Person to whom such debts, obligations, costs, expenses and taxes are owed (a
“Creditor”) whether or not such Creditor has received notice hereof. Any such Creditor may
enforce the Sponsor’s obligations under this Section 3.3 directly against the Sponsor and the
Sponsor irrevocably waives any right or remedy to require that any such Creditor take any action
against the Trust or any other Person before proceeding against the Sponsor. The Sponsor agrees to
execute such additional agreements as may be necessary or desirable in order to give full effect to
the provisions of this Section 3.3.

Section 3.4. Right to Proceed.  The Sponsor acknowledges the rights of Holders to
institute a Direct Action as set forth in Section 2.8(d) hereto.

ARTICLE IV

INSTITUTIONAL TRUSTEE AND ADMINISTRATORS

Section 4.1. Number of Trustees.  The number of Trustees shall initially be two, and;

(a) at any time before the issuance of any Securities, the Sponsor may, by written instrument,
increase or decrease the number of Trustees; and

(b) after the issuance of any Securities, the number of Trustees may be increased or decreased
by vote of the Holder of a Majority in liquidation amount of the Common Securities voting as a
class at a meeting of the Holder of the Common Securities; provided, however, that
there shall be a Delaware Trustee if required by Section 4.2; and there shall always be one Trustee
who shall be the Institutional Trustee, and such Trustee may also serve as Delaware Trustee if it
meets the applicable requirements, in which case Section 2.11 shall have no application to such
entity in its capacity as Institutional Trustee.

Section 4.2. Delaware Trustee; Eligibility.

(a)   If required by the Statutory Trust Act, one Trustee (the “Delaware Trustee”) shall be:

(i)   a natural person at least 21 years of age who is a resident of the State of
Delaware; or

(ii)   if not a natural person, an entity which is organized under the laws of the
United States or any state thereof or the District of Columbia, has its principal place of
business in the State of Delaware, and otherwise meets the requirements of applicable law,
including § 3807 of the Statutory Trust Act.

(b)   The initial Delaware Trustee shall be Wilmington Trust Company.

Section 4.3. Institutional Trustee; Eligibility.

(a)   There shall at all times be one Trustee which shall:

(i)   not be an Affiliate of the Sponsor;

(ii)   not offer or provide credit or credit enhancement to the Trust; and

(iii)   be a banking corporation or trust company organized and doing business under
the laws of the United States of America or any state thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a combined capital and
surplus of at least 50 million U.S. dollars ($50,000,000.00), and subject to supervision or
examination by Federal, state, or District of Columbia authority. If such corporation
publishes reports of condition at least annually, pursuant to law or to the requirements of
the supervising or examining authority referred to above, then for the purposes of this
Section 4.3(a)(iii), the combined capital and surplus of such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of condition so
published.

(b)   If at any time the Institutional Trustee shall cease to be eligible to so act under
Section 4.3(a), the Institutional Trustee shall immediately resign in the manner and with the
effect set forth in Section 4.5.

(c)   If the Institutional Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act of 1939, as amended, the Institutional Trustee
shall either eliminate such interest or resign, to the extent and in the manner provided by, and
subject to this Declaration.

(d)   The initial Institutional Trustee shall be Wilmington Trust Company.

Section 4.4. Administrators.  Each Administrator shall be a U.S. Person, 21 years of
age or older and authorized to bind the Sponsor. The initial Administrators shall be Tito L. Lima
and Thomas J. Paholsky. There shall at all times be at least one Administrator. Except where a
requirement for action by a specific number of Administrators is expressly set forth in this
Declaration and except with respect to any action the taking of which is the subject of a meeting
of the Administrators, any action required or permitted to be taken by the Administrators may be
taken by, and any power of the Administrators may be exercised by, or with the consent of, any one
such Administrator.

Section 4.5. Appointment, Removal and Resignation of Trustees and Administrators.  

(a)   No resignation or removal of any Trustee (the “Relevant Trustee”) and no
appointment of a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the applicable requirements
of this Section 4.5.

(b)   Subject to Section 4.5(a), a Relevant Trustee may resign at any time by giving written
notice thereof to the Holders of the Securities and by appointing a successor Relevant Trustee.
Upon the resignation of the Institutional Trustee, the Institutional Trustee shall appoint a
successor by requesting from at least three Persons meeting the eligibility requirements their
expenses and charges to serve as the successor Institutional Trustee on a form provided by the
Administrators, and selecting the Person who agrees to the lowest expense and charges (the
“Successor Institutional Trustee”). If the instrument of acceptance by the successor
Relevant Trustee required by this Section 4.5 shall not have been delivered to the Relevant Trustee
within 60 days after the giving of such notice of resignation or delivery of the instrument of
removal, the Relevant Trustee may petition, at the expense of the Trust, any federal, state or
District of Columbia court of competent jurisdiction for the appointment of a successor Relevant
Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper,
appoint a Relevant Trustee. The Institutional Trustee shall have no liability for the selection of
such successor pursuant to this Section 4.5.

(c)   Unless an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by an act of the Holders of a Majority in liquidation amount of the Common
Securities. If any Trustee shall be so removed, the Holders of the Common Securities, by act of
the Holders of a Majority in liquidation amount of the Common Securities delivered to the Relevant
Trustee, shall promptly appoint a successor Relevant Trustee, and such successor Trustee shall
comply with the applicable requirements of this Section 4.5. If an Event of Default shall have
occurred and be continuing, the Institutional Trustee or the Delaware Trustee, or both of them, may
be removed by the act of the Holders of a Majority in liquidation amount of the Capital Securities,
delivered to the Relevant Trustee (in its individual capacity and on behalf of the Trust). If any
Trustee shall be so removed, the Holders of Capital Securities, by act of the Holders of a Majority
in liquidation amount of the Capital Securities then outstanding delivered to the Relevant Trustee,
shall promptly appoint a successor Relevant Trustee or Trustees, and such successor Trustee shall
comply with the applicable requirements of this Section 4.5. If no successor Relevant Trustee
shall have been so appointed by the Holders of a Majority in liquidation amount of the Capital
Securities and accepted appointment in the manner required by this Section 4.5 within 30 days after
delivery of an instrument of removal, the Relevant Trustee or any Holder who has been a Holder of
the Securities for at least six months may, on behalf of himself and all others similarly situated,
petition any federal, state or District of Columbia court of competent jurisdiction for the
appointment of a successor Relevant Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper, appoint a successor Relevant Trustee or Trustees.

(d)   The Institutional Trustee shall give notice of each resignation and each removal of a
Trustee and each appointment of a successor Trustee to all Holders and to the Sponsor. Each notice
shall include the name of the successor Relevant Trustee and the address of its Corporate Trust
Office if it is the Institutional Trustee.

(e)   Notwithstanding the foregoing or any other provision of this Declaration, in the event a
Delaware Trustee who is a natural person dies or is adjudged by a court to have become incompetent
or incapacitated, the vacancy created by such death, incompetence or incapacity may be filled by
the Institutional Trustee following the procedures in this Section 4.5 (with the successor being a
Person who satisfies the eligibility requirement for a Delaware Trustee set forth in this
Declaration) (the “Successor Delaware Trustee”).

(f)   In case of the appointment hereunder of a successor Relevant Trustee, the retiring
Relevant Trustee and each successor Relevant Trustee with respect to the Securities shall execute
and deliver an amendment hereto wherein each successor Relevant Trustee shall accept such
appointment and which (a) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, each successor Relevant Trustee all the rights, powers,
trusts and duties of the retiring Relevant Trustee with respect to the Securities and the Trust and
(b) shall add to or change any of the provisions of this Declaration as shall be necessary to
provide for or facilitate the administration of the Trust by more than one Relevant Trustee, it
being understood that nothing herein or in such amendment shall constitute such Relevant Trustees
co-trustees and upon the execution and delivery of such amendment the resignation or removal of the
retiring Relevant Trustee shall become effective to the extent provided therein and each such
successor Relevant Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Relevant Trustee; but, on request of the
Trust or any successor Relevant Trustee, such retiring Relevant Trustee shall duly assign, transfer
and deliver to such successor Relevant Trustee all Trust Property, all proceeds thereof and money
held by such retiring Relevant Trustee hereunder with respect to the Securities and the Trust
subject to the payment of all unpaid fees, expenses and indemnities of such retiring Relevant
Trustee.

(g)   No Institutional Trustee or Delaware Trustee shall be liable for the acts or omissions
to act of any Successor Institutional Trustee or Successor Delaware Trustee, as the case may be.

(h)   The Holders of the Capital Securities will have no right to vote to appoint, remove or
replace the Administrators, which voting rights are vested exclusively in the Holders of the Common
Securities.

(i)   Any successor Delaware Trustee shall file an amendment to the Certificate of Trust with
the Secretary of State of the State of Delaware identifying the name and principal place of
business of such Delaware Trustee in the State of Delaware.

Section 4.6. Vacancies Among Trustees.  If a Trustee ceases to hold office for any
reason and the number of Trustees is not reduced pursuant to Section 4.1, a vacancy shall occur. A
resolution certifying the existence of such vacancy by the Trustees or, if there are more than two,
a majority of the Trustees, shall be conclusive evidence of the existence of such vacancy. The
vacancy shall be filled with a Trustee appointed in accordance with Section 4.5.

Section 4.7. Effect of Vacancies.  The death, resignation, retirement, removal,
bankruptcy, dissolution, liquidation, incompetence or incapacity to perform the duties of a Trustee
shall not operate to dissolve, terminate or annul the Trust or terminate this Declaration.
Whenever a vacancy in the number of Trustees shall occur, until such vacancy is filled by the
appointment of a Trustee in accordance with Section 4.5, the Institutional Trustee shall have all
the powers granted to the Trustees and shall discharge all the duties imposed upon the Trustees by
this Declaration.

Section 4.8. Meetings of the Trustees and the Administrators.  Meetings of the
Administrators shall be held from time to time upon the call of an Administrator. Regular meetings
of the Administrators may be held in person in the United States or by telephone, at a place (if
applicable) and time fixed by resolution of the Administrators. Notice of any in-person meetings
of the Trustees with the Administrators or meetings of the Administrators shall be hand delivered
or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier)
not less than 48 hours before such meeting. Notice of any telephonic meetings of the Trustees with
the Administrators or meetings of the Administrators or any committee thereof shall be hand
delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight
courier) not less than 24 hours before a meeting. Notices shall contain a brief statement of the
time, place and anticipated purposes of the meeting. The presence (whether in person or by
telephone) of a Trustee or an Administrator, as the case may be, at a meeting shall constitute a
waiver of notice of such meeting except where the Trustee or an Administrator, as the case may be,
attends a meeting for the express purpose of objecting to the transaction of any activity on the
grounds that the meeting has not been lawfully called or convened. Unless provided otherwise in
this Declaration, any action of the Trustees or the Administrators, as the case may be, may be
taken at a meeting by vote of a majority of the Trustees or the Administrators present (whether in
person or by telephone) and eligible to vote with respect to such matter, provided that a Quorum is
present, or without a meeting by the unanimous written consent of the Trustees or the
Administrators. Meetings of the Trustees and the Administrators together shall be held from time
to time upon the call of any Trustee or an Administrator.

Section 4.9. Delegation of Power.

(a)   Any Administrator may, by power of attorney consistent with applicable law, delegate to
any other natural person over the age of 21 that is a U.S. Person his or her power for the purpose
of executing any documents contemplated in Section 2.6; and

(b)   the Administrators shall have power to delegate from time to time to such of their
number the doing of such things and the execution of such instruments either in the name of the
Trust or the names of the Administrators or otherwise as the Administrators may deem expedient, to
the extent such delegation is not prohibited by applicable law or contrary to the provisions of the
Trust, as set forth herein.

Section 4.10. Conversion, Consolidation or Succession to Business.  Any Person into
which the Institutional 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
the Institutional Trustee or the Delaware Trustee shall be a party, or any Person succeeding to all
or substantially all the corporate trust business of the Institutional Trustee or the Delaware
Trustee shall be the successor of the Institutional Trustee or the Delaware Trustee hereunder,
provided such Person shall be otherwise qualified and eligible under this Article and,
provided, further, that such Person shall file an amendment to the Certificate of
Trust with the Secretary of State of the State of Delaware as contemplated in Section 4.5(i).

ARTICLE V

DISTRIBUTIONS

Section 5.1. Distributions.  Holders shall receive Distributions in accordance with
the applicable terms of the relevant Holder’s Securities. Distributions shall be made on the
Capital Securities and the Common Securities in accordance with the preferences set forth in their
respective terms. If and to the extent that the Debenture Issuer makes a payment of Interest or
any principal on the Debentures held by the Institutional Trustee, the Institutional Trustee shall
and is directed, to the extent funds are available for that purpose, to make a distribution (a
“Distribution”) of such amounts to Holders.

ARTICLE VI

ISSUANCE OF SECURITIES

Section 6.1. General Provisions Regarding Securities.

(a)   The Administrators shall, on behalf of the Trust, issue one series of capital securities
substantially in the form of Exhibit A-1 representing undivided beneficial interests in the assets
of the Trust having such terms as are set forth in Annex I and one series of common securities
representing undivided beneficial interests in the assets of the Trust having such terms as are set
forth in Annex I. The Trust shall issue no securities or other interests in the assets of the
Trust other than the Capital Securities and the Common Securities. The Capital Securities rank
pari passu to, and payment thereon shall be made Pro Rata with, the Common Securities except that,
where an Event of Default has occurred and is continuing, the rights of Holders of the Common
Securities to payment in respect of Distributions and payments upon liquidation, redemption and
otherwise are subordinated to the rights to payment of the Holders of the Capital Securities as set
forth in Annex I.

(b)   The Certificates shall be signed on behalf of the Trust by one or more Administrators.
Such signature shall be the facsimile or manual signature of any Administrator. In case any
Administrator of the Trust who shall have signed any of the Securities shall cease to be such
Administrator before the Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such Certificates had not ceased to
be such Administrator, and any Certificate may be signed on behalf of the Trust by such persons
who, at the actual date of execution of such Security, shall be an Administrator of the Trust,
although at the date of the execution and delivery of the Declaration any such person was not such
an Administrator. A Capital Security shall not be valid until authenticated by the facsimile or
manual signature of an Authorized Officer of the Institutional Trustee. Such signature shall be
conclusive evidence that the Capital Security has been authenticated under this Declaration. Upon
written order of the Trust signed by one Administrator, the Institutional Trustee shall
authenticate the Capital Securities for original issue. The Institutional Trustee may appoint an
authenticating agent that is a U.S. Person acceptable to the Trust to authenticate the Capital
Securities. A Common Security need not be so authenticated.

(c)   The consideration received by the Trust for the issuance of the Securities shall
constitute a contribution to the capital of the Trust and shall not constitute a loan to the Trust.

(d)   Upon issuance of the Securities as provided in this Declaration, the Securities so
issued shall be deemed to be validly issued, fully paid and, except as provided in Section 9.1(b)
with respect to the Common Securities, non-assessable.

(e)   Every Person, by virtue of having become a Holder in accordance with the terms of this
Declaration, shall be deemed to have expressly assented and agreed to the terms of, and shall be
bound by, this Declaration and the Guarantee.

Section 6.2. Paying Agent, Transfer Agent and Registrar.  The Trust shall maintain in
Wilmington, Delaware, an office or agency where the Capital Securities may be presented for payment
(“Paying Agent”), and an office or agency where Securities may be presented for
registration of transfer or exchange (the “Transfer Agent”). The Trust shall keep or cause
to be kept at such office or agency a register for the purpose of registering Securities, transfers
and exchanges of Securities, such register to be held by a registrar (the “Registrar”).
The Administrators may appoint the Paying Agent, the Registrar and the Transfer Agent and may
appoint one or more additional Paying Agents or one or more co-Registrars, or one or more co
Transfer Agents in such other locations as it shall determine. The term “Paying Agent” includes
any additional paying agent, the term “Registrar” includes any additional registrar or co Registrar
and the term “Transfer Agent” includes any additional transfer agent. The Administrators may
change any Paying Agent, Transfer Agent or Registrar at any time without prior notice to any
Holder. The Administrators shall notify the Institutional Trustee of the name and address of any
Paying Agent, Transfer Agent and Registrar not a party to this Declaration. The Administrators
hereby initially appoint the Institutional Trustee to act as Paying Agent, Transfer Agent and
Registrar for the Capital Securities and the Common Securities. The Institutional Trustee or any
of its Affiliates in the United States may act as Paying Agent, Transfer Agent or Registrar.

Section 6.3. Form and Dating.  The Capital Securities and the Institutional Trustee’s
certificate of authentication thereon shall be substantially in the form of Exhibit A-1, and the
Common Securities shall be substantially in the form of Exhibit A-2, each of which is hereby
incorporated in and expressly made a part of this Declaration. Certificates may be typed, printed,
lithographed or engraved or may be produced in any other manner as is reasonably acceptable to the
Administrators, as conclusively evidenced by their execution thereof. The Securities may have
letters, numbers, notations or other marks of identification or designation and such legends or
endorsements required by law, stock exchange rule, agreements to which the Trust is subject if any,
or usage (provided that any such notation, legend or endorsement is in a form acceptable to the
Sponsor). The Trust at the direction of the Sponsor shall furnish any such legend not contained in
Exhibit A-1 to the Institutional Trustee in writing. Each Capital Security shall be dated on or
before the date of its authentication. The terms and provisions of the Securities set forth in
Annex I and the forms of Securities set forth in Exhibits A-1 and A-2 are part of the terms of this
Declaration and to the extent applicable, the Institutional Trustee, the Delaware Trustee, the
Administrators and the Sponsor, by their execution and delivery of this Declaration, expressly
agree to such terms and provisions and to be bound thereby. Capital Securities will be issued only
in blocks having a stated liquidation amount of not less than $100,000.00 and any multiple of
$1,000.00 in excess thereof.

The Capital Securities are being offered and sold by the Trust pursuant to the Placement
Agreement in definitive, registered form without coupons and with the Restricted Securities Legend.

Section 6.4. Mutilated, Destroyed, Lost or Stolen Certificates.

If:

(a)   any mutilated Certificates should be surrendered to the Registrar, or if the Registrar
shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate;
and

(b)   there shall be delivered to the Registrar, the Administrators and the Institutional
Trustee such security or indemnity as may be required by them to keep each of them harmless;

then, in the absence of notice that such Certificate shall have been acquired by a protected
purchaser, an Administrator on behalf of the Trust shall execute (and in the case of a Capital
Security Certificate, the Institutional Trustee shall authenticate) and deliver, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
denomination. In connection with the issuance of any new Certificate under this Section 6.4, the
Registrar or the Administrators may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith. Any duplicate Certificate
issued pursuant to this Section shall constitute conclusive evidence of an ownership interest in
the relevant Securities, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

Section 6.5. Temporary Securities.  Until definitive Securities are ready for
delivery, the Administrators may prepare and, in the case of the Capital Securities, the
Institutional Trustee shall authenticate, temporary Securities. Temporary Securities shall be
substantially in the form of definitive Securities but may have variations that the Administrators
consider appropriate for temporary Securities. Without unreasonable delay, the Administrators
shall prepare and, in the case of the Capital Securities, the Institutional Trustee shall
authenticate, definitive Securities in exchange for temporary Securities.

Section 6.6. Cancellation.  The Administrators at any time may deliver Securities to
the Institutional Trustee for cancellation. The Registrar shall forward to the Institutional
Trustee any Securities surrendered to it for registration of transfer, redemption or payment. The
Institutional Trustee shall promptly cancel all Securities surrendered for registration of
transfer, payment, replacement or cancellation and shall dispose of such canceled Securities as the
Administrators direct. The Administrators may not issue new Securities to replace Securities that
have been paid or that have been delivered to the Institutional Trustee for cancellation.

Section 6.7. Rights of Holders; Waivers of Past Defaults.

(a)   The legal title to the Trust Property is vested exclusively in the Institutional Trustee
(in its capacity as such) in accordance with Section 2.5, and the Holders shall not have any right
or title therein other than the undivided beneficial interest in the assets of the Trust conferred
by their 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 Securities shall be personal
property giving only the rights specifically set forth therein and in this Declaration. The
Securities shall have no preemptive or similar rights.

(b)   For so long as any Capital Securities remain outstanding, if upon an Acceleration Event
of Default, the Debenture Trustee fails or the holders of not less than 25% in principal amount of
the outstanding Debentures fail to declare the principal of all of the Debentures to be immediately
due and payable, the Holders of a Majority in liquidation amount of the Capital Securities then
outstanding shall have the right to make such declaration by a notice in writing to the
Institutional Trustee, the Sponsor and the Debenture Trustee.

At any time after a declaration of acceleration with respect to the Debentures has been made
and before a judgment or decree for payment of the money due has been obtained by the Debenture
Trustee as provided in the Indenture, if the Institutional Trustee, subject to the provisions
hereof, fails to annul any such declaration and waive such default, the Holders of a Majority in
liquidation amount of the Capital Securities, by written notice to the Institutional Trustee, the
Sponsor and the Debenture Trustee, may rescind and annul such declaration and its consequences if:

(i)   the Debenture Issuer has paid or deposited with the Debenture Trustee a sum
sufficient to pay

(A)   all overdue installments of interest on all of the Debentures,

(B)   any accrued Additional Interest on all of the Debentures,

(C)   the principal of (and premium, if any, on) any Debentures that have
become due otherwise than by such declaration of acceleration and interest and
Additional Interest thereon at the rate borne by the Debentures, and

(D)   all sums paid or advanced by the Debenture Trustee under the Indenture
and the reasonable compensation, expenses, disbursements and advances of the
Debenture Trustee and the Institutional Trustee, their agents and counsel; and

(ii)   all Events of Default with respect to the Debentures, other than the non-payment
of the principal of the Debentures that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.7 of the Indenture.

The Holders of at least a Majority in liquidation amount of the Capital Securities may, on
behalf of the Holders of all the Capital Securities, waive any past default under the Indenture or
any Indenture Event of Default, except a default or Indenture Event of Default in the payment of
principal or interest on the Debentures (unless such default or Indenture Event of Default has been
cured and a sum sufficient to pay all matured installments of interest and principal due otherwise
than by acceleration has been deposited with the Debenture Trustee) or a default under the
Indenture or an Indenture 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
Debenture. No such rescission shall affect any subsequent default or impair any right consequent
thereon.

Upon receipt by the Institutional Trustee of written notice declaring such an acceleration, or
rescission and annulment thereof, by Holders of any part of the Capital Securities, a record date
shall be established for determining Holders of outstanding Capital Securities entitled to join in
such notice, which record date shall be at the close of business on the day the Institutional
Trustee receives such notice. The Holders 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 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 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 preceding sentence, in which event a new record
date shall be established pursuant to the provisions of this Section 6.7.

(c)   Except as otherwise provided in paragraphs (a) and (b) of this Section 6.7, the Holders
of at least a Majority in liquidation amount of the Capital Securities may, on behalf of the
Holders of all the Capital Securities, waive any past default or Event of Default and its
consequences. Upon such waiver, any such default or Event of Default shall cease to exist, and any
default or Event of Default arising therefrom shall be deemed to have been cured, for every purpose
of this Declaration, but no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon.

ARTICLE VII

DISSOLUTION AND TERMINATION OF TRUST

Section 7.1. Dissolution and Termination of Trust.

(a)   The Trust shall dissolve on the first to occur of:

(i)   unless earlier dissolved, on June 15, 2042, the expiration of the term of the
Trust;

(ii)   upon a Bankruptcy Event with respect to the Sponsor, the Trust or the Debenture
Issuer;

(iii)   upon the filing of a certificate of dissolution or its equivalent with respect
to the Sponsor (other than in connection with a merger, consolidation or similar transaction
not prohibited by the Indenture, this Declaration or the Guarantee, as the case may be) or
upon the revocation of the charter of the Sponsor and the expiration of 90 days after the
date of revocation without a reinstatement thereof;

(iv)   upon the distribution of the Debentures to the Holders of the Securities, upon
exercise of the right of the Holder of all of the outstanding Common Securities to dissolve
the Trust as provided in Annex I hereto;

(v)   upon the entry of a decree of judicial dissolution of the Holder of the Common
Securities, the Sponsor, the Trust or the Debenture Issuer;

(vi)   when all of the Securities shall have been called for redemption and the amounts
necessary for redemption thereof shall have been paid to the Holders in accordance with the
terms of the Securities; or

(vii)   before the issuance of any Securities, with the consent of all of the Trustees
and the Sponsor.

(b)   As soon as is practicable after the occurrence of an event referred to in Section
7.1(a), and after satisfaction of liabilities to creditors of the Trust as required by applicable
law, including of the Statutory Trust Act, and subject to the terms set forth in Annex I, the
Institutional Trustee shall terminate the Trust by filing a certificate of cancellation with the
Secretary of State of the State of Delaware.

(c)   The provisions of Section 2.9 and Article IX shall survive the termination of the Trust.

ARTICLE VIII

TRANSFER OF INTERESTS

Section 8.1. General.

(a)   Subject to Section 8.1(c), where Capital Securities are presented to the Registrar or a
co-registrar with a request to register a transfer or to exchange them for an equal number of
Capital Securities represented by different certificates, the Registrar shall register the transfer
or make the exchange if its requirements for such transactions are met. To permit registrations of
transfer and exchanges, the Trust shall issue and the Institutional Trustee shall authenticate
Capital Securities at the Registrar’s request.

(b)   Upon issuance of the Common Securities, the Sponsor shall acquire and retain beneficial
and record ownership of the Common Securities and for so long as the Securities remain outstanding,
and to the fullest extent permitted by applicable law, the Sponsor shall maintain 100% ownership of
the Common Securities; provided, however, that any permitted successor of the
Sponsor, in its capacity as Debenture Issuer, under the Indenture that is a U.S. Person may succeed
to the Sponsor’s ownership of the Common Securities.

(c)   Capital Securities may only be transferred, in whole or in part, in accordance with the
terms and conditions set forth in this Declaration and in the terms of the Securities. To the
fullest extent permitted by applicable law, any transfer or purported transfer of any Security not
made in accordance with this Declaration shall be null and void and will be deemed to be of no
legal effect whatsoever and any such transferee shall be deemed not to be the holder of such
Capital Securities for any purpose, including but not limited to the receipt of Distributions on
such Capital Securities, and such transferee shall be deemed to have no interest whatsoever in such
Capital Securities.

(d)   The Registrar shall provide for the registration of Securities and of transfers of
Securities, which will be effected without charge but only upon payment (with such indemnity as the
Registrar may require) in respect of any tax or other governmental charges that may be imposed in
relation to it. Upon surrender for registration of transfer of any Securities, the Registrar shall
cause one or more new Securities of the same tenor to be issued in the name of the designated
transferee or transferees. Every Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the Registrar duly executed
by the Holder or such Holder’s attorney duly authorized in writing. Each Security surrendered for
registration of transfer shall be canceled by the Institutional Trustee pursuant to Section 6.6. A
transferee of a Security shall be entitled to the rights and subject to the obligations of a Holder
hereunder upon the receipt by such transferee of a Security. By acceptance of a Security, each
transferee shall be deemed to have agreed to be bound by this Declaration.

(e)   The Trust shall not be required (i) to issue, register the transfer of, or exchange any
Securities during a period beginning at the opening of business fifteen days before the day of any
selection of Securities for redemption and ending at the close of business on the earliest date on
which the relevant notice of redemption is deemed to have been given to all Holders of the
Securities to be redeemed, or (ii) to register the transfer or exchange of any Security so selected
for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in
part.

Section 8.2. Transfer Procedures and Restrictions.

(a)   The Capital Securities shall bear the Restricted Securities Legend, which shall not be
removed unless there is delivered to the Trust such satisfactory evidence, which may include an
opinion of counsel satisfactory to the Institutional Trustee, as may be reasonably required by the
Trust, that neither the legend nor the restrictions on transfer set forth therein are required to
ensure that transfers thereof comply with the provisions of the Securities Act. Upon provision of
such satisfactory evidence, the Institutional Trustee, at the written direction of the Trust, shall
authenticate and deliver Capital Securities that do not bear the legend.

(b)   Except as permitted by Section 8.2(a), each Capital Security shall bear a legend (the
“Restricted Securities Legend”) in substantially the following form and a Capital Security
shall not be transferred except in compliance with such legend, unless otherwise determined by the
Sponsor, upon the advice of counsel expert in securities law, in accordance with applicable law:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE
HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE
SPONSOR OR THE TRUST, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S
UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING
THIS CAPITAL SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO,
OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE SPONSOR’S AND THE
TRUST’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM IN ACCORDANCE WITH THE DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED
FROM THE SPONSOR OR THE TRUST. HEDGING TRANSACTIONS INVOLVING THIS SECURITY MAY NOT
BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS
AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, 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”) (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 THE SECURITIES OR
ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE
RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS
EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS
PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR
HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED
BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) 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, OR (ii) SUCH PURCHASE WILL NOT RESULT
IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A
LIQUIDATION AMOUNT OF NOT LESS THAN $100,000.00 (100 SECURITIES) AND MULTIPLES OF
$1,000.00 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF SECURITIES IN A BLOCK HAVING
A LIQUIDATION AMOUNT OF LESS THAN $100,000.00 SHALL BE DEEMED TO BE VOID AND OF NO
LEGAL EFFECT WHATSOEVER.

THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

(c)   To permit registrations of transfers and exchanges, the Trust shall execute and the
Institutional Trustee shall authenticate Capital Securities at the Registrar’s request.

(d)   Registrations of transfers or exchanges will be effected without charge, but only upon
payment (with such indemnity as the Registrar or the Sponsor may require) in respect of any tax or
other governmental charge that may be imposed in relation to it.

(e)   All Capital Securities issued upon any registration of transfer or exchange pursuant to
the terms of this Declaration shall evidence the same security and shall be entitled to the same
benefits under this Declaration as the Capital Securities surrendered upon such registration of
transfer or exchange.

Section 8.3. Deemed Security Holders.  The Trust, the Administrators, the Trustees,
the Paying Agent, the Transfer Agent or the Registrar may treat the Person in whose name any
Certificate shall be registered on the books and records of the Trust as the sole holder of such
Certificate and of the Securities represented by such Certificate for purposes of receiving
Distributions and for all other purposes whatsoever and, accordingly, shall not be bound to
recognize any equitable or other claim to or interest in such Certificate or in the Securities
represented by such Certificate on the part of any Person, whether or not the Trust, the
Administrators, the Trustees, the Paying Agent, the Transfer Agent or the Registrar shall have
actual or other notice thereof.

ARTICLE IX

LIMITATION OF LIABILITY OF

HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS

Section 9.1. Liability.

(a)   Except as expressly set forth in this Declaration, the Guarantee and the terms of the
Securities, the Sponsor shall not be:

(i)   personally liable for the return of any portion of the capital contributions (or
any return thereon) of the Holders of the Securities which shall be made solely from assets
of the Trust; or

(ii)   required to pay to the Trust or to any Holder of the Securities any deficit upon
dissolution of the Trust or otherwise.

(b)   The Holder of the Common Securities shall be liable for all of the debts and obligations
of the Trust (other than with respect to the Securities) to the extent not satisfied out of the
Trust’s assets.

(c)   Pursuant to the Statutory Trust Act, the Holders of the Capital Securities 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 9.2. Exculpation.

(a)   No Indemnified Person shall be liable, responsible or accountable in damages or
otherwise to the Trust or any Covered Person for any loss, damage or claim incurred by reason of
any act or omission performed or omitted by such Indemnified Person in good faith on behalf of the
Trust and in a manner such Indemnified Person reasonably believed to be within the scope of the
authority conferred on such Indemnified Person by this Declaration or by law, except that an
Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person’s negligence or willful misconduct with respect to such acts or omissions.

(b)   An Indemnified Person shall be fully protected in relying in good faith upon the records
of the Trust and upon such information, opinions, reports or statements presented to the Trust by
any Person as to matters the Indemnified Person reasonably believes are within such other Person’s
professional or expert competence and, if selected by such Indemnified Person, has been selected by
such Indemnified Person with reasonable care by or on behalf of the Trust, including information,
opinions, reports or statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from which Distributions
to Holders of Securities might properly be paid.

Section 9.3. Fiduciary Duty.

(a)   To the extent that, at law or in equity, an Indemnified Person has duties (including
fiduciary duties) and liabilities relating thereto to the Trust or to any other Covered Person, an
Indemnified Person acting under this Declaration shall not be liable to the Trust or to any other
Covered Person for its good faith reliance on the provisions of this Declaration. The provisions
of this Declaration, to the extent that they restrict the duties and liabilities of an Indemnified
Person otherwise existing at law or in equity, are agreed by the parties hereto to replace such
other duties and liabilities of the Indemnified Person.

(b)   Whenever in this Declaration an Indemnified Person is permitted or required to make a
decision:

(i)   in its “discretion” or under a grant of similar authority, the Indemnified Person
shall be entitled to consider such interests and factors as it desires, including its own
interests, and shall have no duty or obligation to give any consideration to any interest of
or factors affecting the Trust or any other Person; or

(ii)   in its “good faith” or under another express standard, the Indemnified Person
shall act under such express standard and shall not be subject to any other or different
standard imposed by this Declaration or by applicable law.

Section 9.4. Indemnification.

(a)   The Sponsor shall indemnify, to the full extent permitted by law, any Indemnified Person
who was or is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an
action by or in the right of the Trust) arising out of or in connection with the acceptance or
administration of this Declaration by reason of the fact that he is or was an Indemnified Person
against expenses (including reasonable attorneys’ fees and expenses), judgments, fines and amounts
paid in settlement actually and reasonably incurred by him in connection with such action, suit or
proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Trust, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself, create a presumption that the Indemnified Person did not act in
good faith and in a manner which he reasonably believed to be in or not opposed to the best
interests of the Trust, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.

(b)   The Sponsor shall indemnify, to the full extent permitted by law, any Indemnified Person
who was or is a party or is threatened to be made a party to any threatened, pending or completed
action or suit by or in the right of the Trust to procure a judgment in its favor arising out of or
in connection with the acceptance or administration of this Declaration by reason of the fact that
he is or was an Indemnified Person against expenses (including reasonable attorneys’ fees and
expenses) actually and reasonably incurred by him in connection with the defense or settlement of
such action or suit if he acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Trust; provided, however, that no such
indemnification shall be made in respect of any claim, issue or matter as to which such Indemnified
Person shall have been adjudged to be liable to the Trust unless and only to the extent that the
court in which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such person is fairly
and reasonably entitled to indemnity for such expenses which such court shall deem proper.

(c)   To the extent that an Indemnified Person shall be successful on the merits or otherwise
(including dismissal of an action without prejudice or the settlement of an action without
admission of liability) in defense of any action, suit or proceeding referred to in paragraphs (a)
and (b) of this Section 9.4, or in defense of any claim, issue or matter therein, he shall be
indemnified, to the full extent permitted by law, against expenses (including attorneys’ fees and
expenses) actually and reasonably incurred by him in connection therewith.

(d)   Any indemnification of an Administrator under paragraphs (a) and (b) of this Section 9.4
(unless ordered by a court) shall be made by the Sponsor only as authorized in the specific case
upon a determination that indemnification of the Indemnified Person is proper in the circumstances
because he has met the applicable standard of conduct set forth in paragraphs (a) and (b). Such
determination shall be made (i) by the Administrators by a majority vote of a Quorum consisting of
such Administrators who were not parties to such action, suit or proceeding, (ii) if such a Quorum
is not obtainable, or, even if obtainable, if a Quorum of disinterested Administrators so directs,
by independent legal counsel in a written opinion, or (iii) by the Common Security Holder of the
Trust.

(e)   To the fullest extent permitted by law, expenses (including reasonable attorneys’ fees
and expenses) incurred by an Indemnified Person in defending a civil, criminal, administrative or
investigative action, suit or proceeding referred to in paragraphs (a) and (b) of this Section 9.4
shall be paid by the Sponsor in advance of the final disposition of such action, suit or proceeding
upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if
it shall ultimately be determined that he is not entitled to be indemnified by the Sponsor as
authorized in this Section 9.4. Notwithstanding the foregoing, no advance shall be made by the
Sponsor if a determination is reasonably and promptly made (i) by the Administrators by a majority
vote of a Quorum of disinterested Administrators, (ii) if such a Quorum is not obtainable, or, even
if obtainable, if a quorum of disinterested Administrators so directs, by independent legal counsel
in a written opinion or (iii) by the Common Security Holder of the Trust, that, based upon the
facts known to the Administrators, counsel or the Common Security Holder at the time such
determination is made, such Indemnified Person acted in bad faith or in a manner that such
Indemnified Person did not believe to be in the best interests of the Trust, or, with respect to
any criminal proceeding, that such Indemnified Person believed or had reasonable cause to believe
his conduct was unlawful. In no event shall any advance be made in instances where the
Administrators, independent legal counsel or the Common Security Holder reasonably determine that
such Indemnified Person deliberately breached his duty to the Trust or its Common or Capital
Security Holders.

(f)   The Trustees, at the sole cost and expense of the Sponsor, retain the right to
representation by counsel of their own choosing in any action, suit or any other proceeding for
which they are indemnified under paragraphs (a) and (b) of this Section 9.4, without affecting
their right to indemnification hereunder or waiving any rights afforded to it under this
Declaration or applicable law.

(g)   The indemnification and advancement of expenses provided by, or granted pursuant to, the
other paragraphs of this Section 9.4 shall not be deemed exclusive of any other rights to which
those seeking indemnification and advancement of expenses may be entitled under any agreement, vote
of stockholders or disinterested directors of the Sponsor or Capital Security Holders of the Trust
or otherwise, both as to action in his official capacity and as to action in another capacity while
holding such office. All rights to indemnification under this Section 9.4 shall be deemed to be
provided by a contract between the Sponsor and each Indemnified Person who serves in such capacity
at any time while this Section 9.4 is in effect. Any repeal or modification of this Section 9.4
shall not affect any rights or obligations then existing.

(h)   The Sponsor or the Trust may purchase and maintain insurance on behalf of any Person who
is or was an Indemnified Person against any liability asserted against him and incurred by him in
any such capacity, or arising out of his status as such, whether or not the Sponsor would have the
power to indemnify him against such liability under the provisions of this Section 9.4.

(i)   For purposes of this Section 9.4, references to “the Trust” shall include, in addition
to the resulting or surviving entity, any constituent entity (including any constituent of a
constituent) absorbed in a consolidation or merger, so that any Person who is or was a director,
trustee, officer or employee of such constituent entity, or is or was serving at the request of
such constituent entity as a director, trustee, officer, employee or agent of another entity, shall
stand in the same position under the provisions of this Section 9.4 with respect to the resulting
or surviving entity as he would have with respect to such constituent entity if its separate
existence had continued.

(j)   The indemnification and advancement of expenses provided by, or granted pursuant to,
this Section 9.4 shall, unless otherwise provided when authorized or ratified, (i) continue as to a
Person who has ceased to be an Indemnified Person and shall inure to the benefit of the heirs,
executors and administrators of such a Person; and (ii) survive the termination or expiration of
this Declaration or the earlier removal or resignation of an Indemnified Person.

Section 9.5. Outside Businesses.  Any Covered Person, the Sponsor, the Delaware
Trustee and the Institutional Trustee may engage in or possess an interest in other business
ventures of any nature or description, independently or with others, similar or dissimilar to the
business of the Trust, and the Trust and the Holders of Securities shall have no rights by virtue
of this Declaration in and to such independent ventures or the income or profits derived therefrom,
and the pursuit of any such venture, even if competitive with the business of the Trust, shall not
be deemed wrongful or improper. None of any Covered Person, the Sponsor, the Delaware Trustee or
the Institutional Trustee shall be obligated to present any particular investment or other
opportunity to the Trust even if such opportunity is of a character that, if presented to the
Trust, could be taken by the Trust, and any Covered Person, the Sponsor, the Delaware Trustee and
the Institutional Trustee shall have the right to take for its own account (individually or as a
partner or fiduciary) or to recommend to others any such particular investment or other
opportunity. Any Covered Person, the Delaware Trustee and the Institutional Trustee may engage or
be interested in any financial or other transaction with the Sponsor or any Affiliate of the
Sponsor, or may act as depositary for, trustee or agent for, or act on any committee or body of
holders of, securities or other obligations of the Sponsor or its Affiliates.

Section 9.6. Compensation; Fee.  The Sponsor agrees:

(a)   to pay to the Trustees from time to time such compensation for all services rendered by
them hereunder as the parties shall agree 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);
and

(b)   except as otherwise expressly provided herein, 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 Declaration (including the reasonable compensation and the
expenses and disbursements of their respective agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence, bad faith or willful misconduct.

For purposes of clarification, this Section 9.6 does not contemplate the payment by the
Sponsor of acceptance or annual administration fees owing to the Trustees under this Declaration or
the fees and expenses of the Trustees’ counsel in connection with the closing of the transactions
contemplated by this Declaration.

The provisions of this Section 9.6 shall survive the dissolution of the Trust and the
termination of this Declaration and the removal or resignation of any Trustee.

No Trustee may claim any lien or charge on any property of the Trust as a result of any amount
due pursuant to this Section 9.6.

ARTICLE X

ACCOUNTING

Section 10.1. Fiscal Year.  The fiscal year (“Fiscal Year”) of the Trust shall
be the calendar year, or such other year as is required by the Code.

Section 10.2. Certain Accounting Matters.  

(a)   At all times during the existence of the Trust, the Administrators 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, at the Sponsor’s expense, in accordance with generally accepted accounting
principles, consistently applied. The books of account and the records of the Trust shall be
examined by and reported upon (either separately or as part of the Sponsor’s regularly prepared
consolidated financial report) as of the end of each Fiscal Year of the Trust by a firm of
independent certified public accountants selected by the Administrators.

(b)   The Administrators shall cause to be duly prepared and delivered to each of the Holders
of Securities Form 1099 or such other annual United States federal income tax information statement
required by the Code, containing such information with regard to the Securities held by each Holder
as is required by the Code and the Treasury Regulations. Notwithstanding any right under the Code
to deliver any such statement at a later date, the Administrators shall endeavor to deliver all
such statements within 30 days after the end of each Fiscal Year of the Trust.

(c)   The Administrators, at the Sponsor’s expense, shall cause to be duly prepared at the
principal office of the Sponsor in the United States, as ‘United States’ is defined in
Section 7701(a)(9) of the Code (or at the principal office of the Trust if the Sponsor has no such
principal office in the United States), and filed an annual United States federal income tax return
on a Form 1041 or such other form required by United States federal income tax law, and any other
annual income tax returns required to be filed by the Administrators on behalf of the Trust with
any state or local taxing authority.

Section 10.3. Banking.  The Trust shall maintain in the United States, as defined for
purposes of Treasury Regulations section 301.7701-7, one or more bank accounts in the name and for
the sole benefit of the Trust; provided, however, that all payments of funds in
respect of the Debentures held by the Institutional Trustee shall be made directly to the Property
Account and no other funds of the Trust shall be deposited in the Property Account. The sole
signatories for such accounts (including the Property Account) shall be designated by the
Institutional Trustee.

Section 10.4. Withholding.  The Institutional Trustee or any Paying Agent and the
Administrators shall comply with all withholding requirements under United States federal, state
and local law. The Institutional Trustee or any Paying Agent shall request, and each Holder shall
provide to the Institutional Trustee or any Paying Agent, such forms or certificates as are
necessary to establish an exemption from withholding with respect to the Holder, and any
representations and forms as shall reasonably be requested by the Institutional Trustee or any
Paying Agent to assist it in determining the extent of, and in fulfilling, its withholding
obligations. The Administrators shall file required forms with applicable jurisdictions and,
unless an exemption from withholding is properly established by a Holder, shall remit amounts
withheld with respect to the Holder to applicable jurisdictions. To the extent that the
Institutional Trustee or any Paying Agent is required to withhold and pay over any amounts to any
authority 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
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by the amount of such
withholding.

ARTICLE XI

AMENDMENTS AND MEETINGS

Section 11.1. Amendments.

(a)   Except as otherwise provided in this Declaration or by any applicable terms of the
Securities, this Declaration may only be amended by a written instrument approved and executed
(i) by the Institutional Trustee, or (ii) if the amendment affects the rights, powers, duties,
obligations or immunities of the Delaware Trustee, by the Delaware Trustee.

(b)   Notwithstanding any other provision of this Article XI, an amendment may be made, and
any such purported amendment shall be valid and effective only if:

(i)   the Institutional Trustee shall have first received

(A)   an Officers’ Certificate from each of the Trust and the Sponsor that such
amendment is permitted by, and conforms to, the terms of this Declaration (including
the terms of the Securities); and

(B)   an opinion of counsel (who may be counsel to the Sponsor or the Trust)
that such amendment is permitted by, and conforms to, the terms of this Declaration
(including the terms of the Securities); and

(ii)   the result of such amendment would not be to

(A)   cause the Trust to cease to be classified for purposes of United States
federal income taxation as a grantor trust; or

(B)   cause the Trust to be deemed to be an Investment Company required to be
registered under the Investment Company Act.

(c)   Except as provided in Section 11.1(d), (e) or (h), no amendment shall be made, and any
such purported amendment shall be void and ineffective, unless the Holders of a Majority in
liquidation amount of the Capital Securities shall have consented to such amendment.

(d)   In addition to and notwithstanding any other provision in this Declaration, without the
consent of each affected Holder, this Declaration may not be amended to (i) change the amount or
timing of any Distribution on the Securities or otherwise adversely affect the amount of any
Distribution required to be made in respect of the Securities as of a specified date or change any
conversion or exchange provisions or (ii) restrict the right of a Holder to institute suit for the
enforcement of any such payment on or after such date.

(e)   Sections 9.1(b) and 9.1(c) and this Section 11.1 shall not be amended without the
consent of all of the Holders of the Securities.

(f)   Article III shall not be amended without the consent of the Holders of a Majority in
liquidation amount of the Common Securities.

(g)   The rights of the Holders of the Capital Securities under Article IV to appoint and
remove Trustees shall not be amended without the consent of the Holders of a Majority in
liquidation amount of the Capital Securities.

(h)   This Declaration may be amended by the Institutional Trustee and the Holders of a
Majority in liquidation amount of the Common Securities without the consent of the Holders of the
Capital Securities to:

(i)   cure any ambiguity;

(ii)   correct or supplement any provision in this Declaration that may be defective or
inconsistent with any other provision of this Declaration;

(iii)   add to the covenants, restrictions or obligations of the Sponsor; or

(iv)   modify, eliminate or add to any provision of this Declaration to such extent as
may be necessary to ensure that the Trust will be classified for United States federal
income tax purposes at all times as a grantor trust and will not be required to register as
an Investment Company (including without limitation to conform to any change in Rule 3a-5,
Rule 3a-7 or any other applicable rule under the Investment Company Act or written change in
interpretation or application thereof by any legislative body, court, government agency or
regulatory authority) which amendment does not have a material adverse effect on the rights,
preferences or privileges of the Holders of Securities;

provided, however, that no such modification, elimination or addition referred
to in clauses (i), (ii), (iii) or (iv) shall adversely affect in any material respect the powers,
preferences or special rights of Holders of Capital Securities.

Section 11.2. Meetings of the Holders of Securities; Action by Written Consent.

(a)   Meetings of the Holders of any class of Securities may be called at any time by the
Administrators (or as provided in the terms of the Securities) to consider and act on any matter on
which Holders of such class of Securities are entitled to act under the terms of this Declaration
or the terms of the Securities. The Administrators shall call a meeting of the Holders of such
class if directed to do so by the Holders of at least 10% in liquidation amount of such class of
Securities. Such direction shall be given by delivering to the Administrators one or more calls in
a writing stating that the signing Holders of the Securities wish to call a meeting and indicating
the general or specific purpose for which the meeting is to be called. Any Holders of the
Securities calling a meeting shall specify in writing the Certificates held by the Holders of the
Securities exercising the right to call a meeting and only those Securities represented by such
Certificates shall be counted for purposes of determining whether the required percentage set forth
in the second sentence of this paragraph has been met.

(b)   Except to the extent otherwise provided in the terms of the Securities, the following
provisions shall apply to meetings of Holders of the Securities:

(i)   notice of any such meeting shall be given to all the Holders of the Securities
having a right to vote thereat at least 7 days and not more than 60 days before the date of
such meeting. Whenever a vote, consent or approval of the Holders of the Securities is
permitted or required under this Declaration, such vote, consent or approval may be given at
a meeting of the Holders of the Securities. Any action that may be taken at a meeting of
the Holders of the Securities may be taken without a meeting if a consent in writing setting
forth the action so taken is signed by the Holders of the Securities owning not less than
the minimum amount of Securities in liquidation amount that would be necessary to authorize
or take such action at a meeting at which all Holders of the Securities having a right to
vote thereon were present and voting. Prompt notice of the taking of action without a
meeting shall be given to the Holders of the Securities entitled to vote who have not
consented in writing. The Administrators may specify that any written ballot submitted to
the Holders of the Securities for the purpose of taking any action without a meeting shall
be returned to the Trust within the time specified by the Administrators;

(ii)   each Holder of a Security may authorize any Person to act for it by proxy on all
matters in which a Holder of Securities is entitled to participate, including waiving notice
of any meeting, or voting or participating at a meeting. No proxy shall be valid after the
expiration of 11 months from the date thereof unless otherwise provided in the proxy. Every
proxy shall be revocable at the pleasure of the Holder of the Securities executing it.
Except as otherwise provided herein, all matters relating to the giving, voting or validity
of proxies shall be governed by the General Corporation Law of the State of Delaware
relating to proxies, and judicial interpretations thereunder, as if the Trust were a
Delaware corporation and the Holders of the Securities were stockholders of a Delaware
corporation; each meeting of the Holders of the Securities shall be conducted by the
Administrators or by such other Person that the Administrators may designate; and

(iii)   unless the Statutory Trust Act, this Declaration, or the terms of the
Securities otherwise provides, the Administrators, in their sole discretion, shall establish
all other provisions relating to meetings of Holders of Securities, including notice of the
time, place or purpose of any meeting at which any matter is to be voted on by any Holders
of the Securities, waiver of any such notice, action by consent without a meeting, the
establishment of a record date, quorum requirements, voting in person or by proxy or any
other matter with respect to the exercise of any such right to vote; provided,
however, that each meeting shall be conducted in the United States (as that term is
defined in Treasury Regulations section 301.7701-7).

ARTICLE XII

REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND THE DELAWARE TRUSTEE

Section 12.1. Representations and Warranties of Institutional Trustee.  The initial
Institutional Trustee represents and warrants to the Trust and to the Sponsor at the date of this
Declaration, and each Successor Institutional Trustee represents and warrants to the Trust and the
Sponsor at the time of the Successor Institutional Trustee’s acceptance of its appointment as
Institutional Trustee, that:

(a)   the Institutional Trustee is a Delaware banking corporation with trust powers, duly
organized and validly existing under the laws of the State of Delaware with trust power and
authority to execute and deliver, and to carry out and perform its obligations under the terms of,
this Declaration;

(b)   the execution, delivery and performance by the Institutional Trustee of this Declaration
has been duly authorized by all necessary corporate action on the part of the Institutional
Trustee. This Declaration has been duly executed and delivered by the Institutional Trustee, and
it constitutes a legal, valid and binding obligation of the Institutional Trustee, enforceable
against it in accordance with its terms, subject to applicable bankruptcy, reorganization,
moratorium, insolvency, and other similar laws affecting creditors’ rights generally and to general
principles of equity (regardless of whether considered in a proceeding in equity or at law);

(c)   the execution, delivery and performance of this Declaration by the Institutional Trustee
does not conflict with or constitute a breach of the charter or by-laws of the Institutional
Trustee; and

(d)   no consent, approval or authorization of, or registration with or notice to, any state
or federal banking authority is required for the execution, delivery or performance by the
Institutional Trustee of this Declaration.

Section 12.2. Representations of the Delaware Trustee.  The Trustee that acts as
initial Delaware Trustee represents and warrants to the Trust and to the Sponsor at the date of
this Declaration, and each Successor Delaware Trustee represents and warrants to the Trust and the
Sponsor at the time of the Successor Delaware Trustee’s acceptance of its appointment as Delaware
Trustee that:

(a)   if it is not a natural person, the Delaware Trustee is duly organized, validly existing
and in good standing under the laws of the State of Delaware;

(b)   if it is not a natural person, the execution, delivery and performance by the Delaware
Trustee of this Declaration has been duly authorized by all necessary corporate action on the part
of the Delaware Trustee. This Declaration has been duly executed and delivered by the Delaware
Trustee, and under Delaware law (excluding any securities laws) constitutes a legal, valid and
binding obligation of the Delaware Trustee, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, moratorium, insolvency and other 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);

(c)   if it is not a natural person, the execution, delivery and performance of this
Declaration by the Delaware Trustee does not conflict with or constitute a breach of the charter or
by-laws of the Delaware Trustee;

(d)   it has trust power and authority to execute and deliver, and to carry out and perform
its obligations under the terms of, this Declaration;

(e)   no consent, approval or authorization of, or registration with or notice to, any state
or federal banking authority governing the trust powers of the Delaware Trustee is required for the
execution, delivery or performance by the Delaware Trustee of this Declaration; and

(f)   the Delaware Trustee is a natural person who is a resident of the State of Delaware or,
if not a natural person, it is an entity which has its principal place of business in the State of
Delaware and, in either case, a Person that satisfies for the Trust the requirements of Section
3807 of the Statutory Trust Act.

ARTICLE XIII

MISCELLANEOUS

Section 13.1. Notices.  All notices provided for in this Declaration shall be in
writing, duly signed by the party giving such notice, and shall be delivered, telecopied (which
telecopy shall be followed by notice delivered or mailed by first class mail) or mailed by first
class mail, as follows:

(a)   if given to the Trust, in care of the Administrators at the Trust’s mailing address set
forth below (or such other address as the Trust may give notice of to the Holders of the
Securities):

Sterling Financial Statutory Trust V

c/o Sterling Financial Corporation

1097 Commercial Avenue

East Petersburg, Pennsylvania 17520

Attention: Tito L. Lima

Telecopy: 717-581-6008

(b)   

if given to the Delaware Trustee, at the Delaware Trustee’s mailing address set forth below
(or such other address as the Delaware Trustee may give notice of to the Holders of the
Securities):

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Attention: Corporate Trust Administration

Telecopy: 302-636-4140

(c)   if given to the Institutional Trustee, at the Institutional Trustee’s mailing address
set forth below (or such other address as the Institutional Trustee may give notice of to the
Holders of the Securities):

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1600

Attention: Corporate Trust Administration

Telecopy: 302-636-4140

(d)   if given to the Holder of the Common Securities, at the mailing address of the Sponsor
set forth below (or such other address as the Holder of the Common Securities may give notice of to
the Trust):

Sterling Financial Corporation

1097 Commercial Avenue

East Petersburg, Pennsylvania 17520

Attention: Tito L. Lima

Telecopy: 717-581-6008

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

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

Section 13.2. Governing Law.  This Declaration and the rights of the parties hereunder
shall be governed by and interpreted in accordance with the law of the State of Delaware and all
rights and remedies shall be governed by such laws without regard to the principles of conflict of
laws of the State of Delaware or any other jurisdiction that would call for the application of the
law of any jurisdiction other than the State of Delaware; provided, however, that
there shall not be applicable to the Trust, the Trustees or this Declaration any provision of the
laws (statutory or common) 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, or (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.

Section 13.3. Intention of the Parties.  It is the intention of the parties hereto
that the Trust be classified for United States federal income tax purposes as a grantor trust. The
provisions of this Declaration shall be interpreted to further this intention of the parties.

Section 13.4. Headings.  Headings contained in this Declaration are inserted for
convenience of reference only and do not affect the interpretation of this Declaration or any
provision hereof.

Section 13.5. Successors and Assigns.  Whenever in this Declaration any of the parties
hereto is named or referred to, the successors and assigns of such party shall be deemed to be
included, and all covenants and agreements in this Declaration by the Sponsor and the Trustees
shall bind and inure to the benefit of their respective successors and assigns, whether or not so
expressed.

Section 13.6. Partial Enforceability.  If any provision of this Declaration, or the
application of such provision to any Person or circumstance, shall be held invalid, the remainder
of this Declaration, or the application of such provision to persons or circumstances other than
those to which it is held invalid, shall not be affected thereby.

Section 13.7. Counterparts.  This Declaration may contain more than one counterpart of
the signature page and this Declaration may be executed by the affixing of the signature of each of
the Trustees and Administrators to any of such counterpart signature pages. All of such
counterpart signature pages shall be read as though one, and they shall have the same force and
effect as though all of the signers had signed a single signature page.

Signatures appear on the following page

3

IN WITNESS WHEREOF, the undersigned have caused these presents to be executed as of the day
and year first above written.

WILMINGTON TRUST COMPANY,

as Delaware Trustee

By:

Name:

Title:

WILMINGTON TRUST COMPANY,

as Institutional Trustee

By:

Name:

Title:

STERLING FINANCIAL CORPORATION, as Sponsor

By:

Name: Tito L. Lima

Title: Chief Financial Officer

ADMINISTRATORS OF STERLING FINANCIAL STATUTORY
TRUST V

By:

Tito L. Lima, Administrator

By:

Thomas J. Paholsky, Administrator

4

ANNEX I

TERMS OF SECURITIES

Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of
March 22, 2007 (as amended from time to time, the “Declaration”), the designation, rights,
privileges, restrictions, preferences and other terms and provisions of the Capital Securities and
the Common Securities are set out below (each capitalized term used but not defined herein has the
meaning set forth in the Declaration):

1. Designation and Number.

(a) 20,000 Floating Rate Capital Securities of Sterling Financial Statutory Trust V (the
“Trust”), with an aggregate stated liquidation amount with respect to the assets of the Trust of
twenty million dollars ($20,000,000.00) and a stated liquidation amount with respect to the assets
of the Trust of $1,000.00 per Capital Security, are hereby designated for the purposes of
identification only as the “Capital Securities”. The Capital Security Certificates
evidencing the Capital Securities shall be substantially in the form of Exhibit A-1 to the
Declaration, with such changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice.

(b) 619 Floating Rate Common Securities of the Trust (the “Common Securities”) will be
evidenced by Common Security Certificates substantially in the form of Exhibit A-2 to the
Declaration, with such changes and additions thereto or deletions therefrom as may be required by
ordinary usage, custom or practice.

2. Distributions.

(a) Distributions will be payable on each Security for the Distribution Period beginning on
(and including) the date of original issuance and ending on (but excluding) the Distribution
Payment Date in June 2007 at a rate per annum of 7.00% and shall bear interest for each successive
Distribution Period beginning on (and including) the Distribution Payment Date in June 2007, and
each succeeding Distribution Payment Date, and ending on (but excluding) the next succeeding
Distribution Payment Date at a rate per annum equal to the 3-Month LIBOR, determined as described
below, plus 1.65% (the “Coupon Rate”), applied to the stated liquidation amount thereof,
such rate being the rate of interest payable on the Debentures to be held by the Institutional
Trustee. Distributions in arrears will bear interest thereon compounded quarterly at the
applicable Distribution Rate (to the extent permitted by law). Distributions, as used herein,
include cash distributions and any such compounded distributions unless otherwise noted. A
Distribution is payable only to the extent that payments are made in respect of the Debentures held
by the Institutional Trustee and to the extent the Institutional Trustee has funds available
therefor. The amount of the Distribution payable for any Distribution Period will be calculated by
applying the Distribution Rate to the stated liquidation amount outstanding at the commencement of
the Distribution Period on the basis of the actual number of days in the Distribution Period
concerned divided by 360. All percentages resulting from any calculations on the Capital
Securities will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage
point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or
        .09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used in or resulting
from such calculation will be rounded to the nearest cent (with one-half cent being rounded
upward)).

(b) Distributions on the Securities will be cumulative, will accrue from the date of original
issuance, and will be payable, subject to extension of distribution payment periods as described
herein, quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, or if
such day is not a Business Day, then the next succeeding Business Day (each a “Distribution
Payment Date”) (it being understood that interest accrues for any such non-Business Day),
commencing on the Distribution Payment Date in June 2007 when, as and if available for payment.
The Debenture Issuer has the right under the Indenture to defer payments of interest on the
Debentures, so long as no Acceleration Event of Default has occurred and is continuing, by
deferring the payment of interest on the Debentures for up to 20 consecutive quarterly periods
(each an “Extension Period”) at any time and from time to time, subject to the conditions
described below, during which Extension Period no interest shall be due and payable. During any
Extension Period, interest will continue to accrue on the Debentures, and interest on such accrued
interest will accrue at an annual rate equal to the Distribution Rate in effect for each such
Extension Period, compounded quarterly from the date such interest would have been payable were it
not for the Extension Period, to the extent permitted by law (such interest referred to herein as
“Additional Interest”). No Extension Period may end on a date other than a Distribution
Payment Date. At the end of any such Extension Period, the Debenture Issuer shall pay all interest
then accrued and unpaid on the Debentures (together with Additional Interest thereon);
provided, however, that no Extension Period may extend beyond the Maturity Date and
provided further, however, that during any such Extension Period, the
Debenture Issuer and its Affiliates 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 Debenture
Issuer’s or its Affiliates’ capital stock (other than payments of dividends or distributions to the
Debenture Issuer) or make any guarantee payments with respect to the foregoing, or (ii) make any
payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt
securities of the Debenture Issuer or any Affiliate that rank pari passu in all respects with or
junior in interest to the Debentures (other than, with respect to clauses (i) and (ii) above,
(a) repurchases, redemptions or other acquisitions of shares of capital stock of the Debenture
Issuer in connection with any employment contract, benefit plan or other similar arrangement with
or for the benefit of one or more employees, officers, directors or consultants, in connection with
a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of
capital stock of the Debenture Issuer (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into prior to the applicable
Extension Period, (b) as a result of any exchange or conversion of any class or series of the
Debenture Issuer’s capital stock (or any capital stock of a subsidiary of the Debenture Issuer) for
any class or series of the Debenture Issuer’s capital stock or of any class or series of the
Debenture Issuer’s indebtedness for any class or series of the Debenture Issuer’s capital stock,
(c) the purchase of fractional interests in shares of the Debenture Issuer’s capital stock pursuant
to the conversion or exchange provisions of such capital stock or the security being converted or
exchanged, (d) any declaration of a dividend in connection with any stockholders’ rights plan, or
the issuance of rights, stock or other property under any stockholders’ rights plan, or the
redemption or repurchase of rights pursuant thereto, (e) any dividend in the form of stock,
warrants, options or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the dividend is being
paid or ranks pari passu with or junior to such stock and any cash payments in lieu of fractional
shares issued in connection therewith, or (f)  payments under the Capital Securities Guarantee).
Prior to the termination of any Extension Period, the Debenture Issuer may further extend such
period, provided that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity
Date. Upon the termination of any Extension Period and upon the payment of all accrued and unpaid
interest and Additional Interest, the Debenture Issuer may commence a new Extension Period, subject
to the foregoing requirements. No interest or Additional Interest shall be due and payable during
an Extension Period, except at the end thereof, but each installment of interest that would
otherwise have been due and payable during such Extension Period shall bear Additional Interest.
During any Extension Period, Distributions on the Securities shall be deferred for a period equal
to the Extension Period. If Distributions are deferred, the Distributions due shall be paid on the
date that the related Extension Period terminates to Holders of the Securities as they appear on
the books and records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available for Distribution
to the Holders of the Securities will be limited to payments received from the Debenture Issuer.
The payment of Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

(c) Distributions on the Securities will be payable to the Holders thereof as they appear on
the books and records of the Trust on the relevant record dates. The relevant record dates shall
be fifteen days before the relevant Distribution Payment Date. Distributions payable on any
Securities that are not punctually paid on any Distribution Payment Date, as a result of the
Debenture Issuer having failed to make a payment under the Debentures, as the case may be, when due
(taking into account any Extension Period), will cease to be payable to the Person in whose name
such Securities are registered on the relevant record date, and such defaulted Distribution will
instead be payable to the Person in whose name such Securities are registered on the special record
date or other specified date determined in accordance with the Indenture.

(d) In the event that there is any money or other property held by or for the Trust that is
not accounted for hereunder, such property shall be distributed Pro Rata (as defined herein) among
the Holders of the Securities.

3. Liquidation Distribution Upon Dissolution. In the event of the voluntary or
involuntary liquidation, dissolution, winding-up or termination of the Trust (each a
“Liquidation”) other than in connection with a redemption of the Debentures, the Holders of
the Securities will be entitled to receive out of the assets of the Trust available for
distribution to Holders of the Securities, after satisfaction of liabilities to creditors of the
Trust (to the extent not satisfied by the Debenture Issuer), distributions equal to the aggregate
of the stated liquidation amount of $1,000.00 per Security plus accrued and unpaid Distributions
thereon to the date of payment (such amount being the “Liquidation Distribution”), unless
in connection with such Liquidation, the Debentures in an aggregate stated principal amount equal
to the aggregate stated liquidation amount of such Securities, with an interest rate equal to the
Distribution Rate of, and bearing accrued and unpaid interest in an amount equal to the accrued and
unpaid Distributions on, and having the same record date as, such Securities, after paying or
making reasonable provision to pay all claims and obligations of the Trust in accordance with the
Statutory Trust Act, shall be distributed on a Pro Rata basis to the Holders of the Securities in
exchange for such Securities.

The Sponsor, as the Holder of all of the Common Securities, has the right at any time to
dissolve the Trust (including, without limitation, upon the occurrence of a Special Event), subject
to the receipt by the Debenture Issuer of prior approval from the Board of Governors of the Federal
Reserve System, or its designated district bank, as applicable, and any successor federal agency
that is primarily responsible for regulating the activities of the Sponsor (the “Federal
Reserve”), if the Sponsor is a bank holding company, or from the Office of Thrift Supervision
and any successor federal agency that is primarily responsible for regulating the activities of
Sponsor, (the “OTS”) if the Sponsor is a savings and loan holding company, in either case
if then required under applicable capital guidelines or policies of the Federal Reserve or OTS, as
applicable, and, after satisfaction of liabilities to creditors of the Trust, cause the Debentures
to be distributed to the Holders of the Securities on a Pro Rata basis in accordance with the
aggregate stated liquidation amount thereof.

If a Liquidation of the Trust occurs as described in clause (i), (ii), (iii) or (v) in Section
7.1(a) of the Declaration, the Trust shall be liquidated by the Institutional Trustee as
expeditiously as it determines to be possible by distributing, after satisfaction of liabilities to
creditors of the Trust, to the Holders of the Securities, the Debentures on a Pro Rata basis to the
extent not satisfied by the Debenture Issuer, unless such distribution is determined by the
Institutional Trustee not to be practical, in which event such Holders will be entitled to receive
out of the assets of the Trust available for distribution to the Holders, after satisfaction of
liabilities of creditors of the Trust to the extent not satisfied by the Debenture Issuer, an
amount equal to the Liquidation Distribution. An early Liquidation of the Trust pursuant to
clause (iv) of Section 7.1(a) of the Declaration shall occur if the Institutional Trustee
determines that such Liquidation is possible by distributing, after satisfaction of liabilities to
creditors of the Trust, to the Holders of the Securities on a Pro Rata basis, the Debentures, and
such distribution occurs.

If, upon any such Liquidation 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 the amounts payable directly by the Trust on such Capital Securities shall be paid to the
Holders of the Trust Securities on a Pro Rata basis, except that if an Event of Default has
occurred and is continuing, the Capital Securities shall have a preference over the Common
Securities with regard to such distributions.

After the date for any distribution of the Debentures upon dissolution of the Trust (i) the
Securities of the Trust will be deemed to be no longer outstanding, (ii) upon surrender of a
Holder’s Securities certificate, such Holder of the Securities will receive a certificate
representing the Debentures to be delivered upon such distribution, (iii) any certificates
representing the Securities still outstanding will be deemed to represent undivided beneficial
interests in such of the Debentures as have an aggregate principal amount equal to the aggregate
stated liquidation amount with an interest rate identical to the Distribution Rate of, and bearing
accrued and unpaid interest equal to accrued and unpaid distributions on, the Securities until such
certificates are presented to the Debenture Issuer or its agent for transfer or reissuance (and
until such certificates are so surrendered, no payments of interest or principal shall be made to
Holders of Securities in respect of any payments due and payable under the Debentures;
provided, however that such failure to pay shall not be deemed to be an Event of
Default and shall not entitle the Holder to the benefits of the Guarantee), and (iv) all rights of
Holders of Securities under the Declaration shall cease, except the right of such Holders to
receive Debentures upon surrender of certificates representing such Securities.

4. Redemption and Distribution.

(a) The Debentures will mature on June 15, 2037. The Debentures may be redeemed by the
Debenture Issuer, in whole or in part, at any Distribution Payment Date on or after the
Distribution Payment Date in March 2012, at the Redemption Price. In addition, the Debentures may
be redeemed by the Debenture Issuer at the Special Redemption Price, in whole but not in part, at
any Distribution Payment Date, upon the occurrence and continuation of a Special Event within
120 days following the occurrence of such Special Event at the Special Redemption Price, upon not
less than 30 nor more than 60 days’ notice to holders of such Debentures so long as such Special
Event is continuing. In each case, the right of the Debenture Issuer to redeem the Debentures is
subject to the Debenture Issuer having received prior approval from the Federal Reserve (if the
Debenture Issuer is a bank holding company) or prior approval from the OTS (if the Debenture Issuer
is a savings and loan holding company), in each case if then required under applicable capital
guidelines or policies of the applicable federal agency.

“3-Month LIBOR” means the London interbank offered interest rate for three-month, U.S.
dollar deposits determined by the Debenture Trustee in the following order of priority:

(1) the rate (expressed as a percentage per annum) for U.S. dollar deposits having a
three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on
the related Determination Date (as defined below). “Telerate Page 3750” means the display
designated as “Page 3750” on the Moneyline Telerate Service or such other page as may
replace Page 3750 on that service or such other service or services as may be nominated by
the British Bankers’ Association as the information vendor for the purpose of displaying
London interbank offered rates for U.S. dollar deposits;

(2) if such rate cannot be identified on the related Determination Date, the Debenture
Trustee will request the principal London offices of four leading banks in the London
interbank market to provide such banks’ offered quotations (expressed as percentages per
annum) to prime banks in the London interbank market for U.S. dollar deposits having a
three-month maturity as of 11:00 a.m. (London time) on such Determination Date. If at least
two quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations;

(3) if fewer than two such quotations are provided as requested in clause (2) above,
the Debenture Trustee will request four major New York City banks to provide such banks’
offered quotations (expressed as percentages per annum) to leading European banks for loans
in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two
such quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations;
and

(4) if fewer than two such quotations are provided as requested in clause (3) above,
3-Month LIBOR will be a 3-Month LIBOR determined with respect to the Distribution Period
immediately preceding such current Distribution Period.

If the rate for U.S. dollar deposits having a three-month maturity that initially appears on
Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination Date is superseded
on the Telerate Page 3750 by a corrected rate by 12:00 noon (London time) on such Determination
Date, then the corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date.

The Distribution Rate for any Distribution Period will at no time be higher than the maximum
rate then permitted by New York law as the same may be modified by United States law.

“Capital Treatment Event” means the receipt by the Debenture Issuer and the Trust of
an opinion of counsel experienced in such matters to the effect that, as a result of the occurrence
of any amendment to, or change (including any announced prospective change) in, the laws, rules or
regulations of the United States or any political subdivision thereof or therein, or as the result
of any official or administrative pronouncement or action or decision interpreting or applying such
laws, rules or regulations, which amendment or change is effective or which pronouncement, action
or decision is announced on or after the date of original issuance of the Debentures, there is more
than an insubstantial risk that the Sponsor will not, within 90 days of the date of such opinion,
be entitled to treat an amount equal to the aggregate liquidation amount of the Capital Securities
as “Tier 1 Capital” (or its then equivalent) for purposes of the capital adequacy guidelines of the
Federal Reserve, as then in effect and applicable to the Sponsor (or if the Sponsor is not a bank
holding company or otherwise is not subject to the Federal Reserve’s risk-based capital adequacy
guidelines, such guidelines applied to the Sponsor as if the Sponsor were subject to such
guidelines); provided, however, that the inability of the Sponsor to treat all or
any portion of the liquidation amount of the Capital Securities as Tier l Capital shall not
constitute the basis for a Capital Treatment Event, if such inability results from the Sponsor
having cumulative preferred stock, minority interests in consolidated subsidiaries, or any other
class of security or interest which the Federal Reserve or OTS, as applicable, may now or hereafter
accord Tier 1 Capital treatment in excess of the amount which may now or hereafter qualify for
treatment as Tier 1 Capital under applicable capital adequacy guidelines; provided
further, however, that the distribution of Debentures in connection with the
Liquidation of the Trust shall not in and of itself constitute a Capital Treatment Event unless
such Liquidation shall have occurred in connection with a Tax Event or an Investment Company Event.

“Determination Date” means the date that is two London Banking Days (i.e., a business
day in which dealings in deposits in U.S. dollars are transacted in the London interbank market)
preceding the particular Distribution Period for which a Coupon Rate is being determined.

“Investment Company Event” means the receipt by the Debenture Issuer and the Trust of
an opinion of counsel experienced in such matters to the effect that, as a result of the occurrence
of a change in law or regulation or written change (including any announced prospective change) in
interpretation or application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that the Trust is or,
within 90 days of the date of such opinion, will be considered an Investment Company that is
required to be registered under the Investment Company Act which change or prospective change
becomes effective or would become effective, as the case may be, on or after the date of the
issuance of the Debentures.

“Maturity Date” means June 15, 2037.

“Redemption Date” shall mean the date fixed for the redemption of Capital Securities,
which shall be any Distribution Payment Date on or after the Distribution Payment Date in
March 2012.

“Redemption Price” means 100% of the principal amount of the Debentures being
redeemed, plus accrued and unpaid Interest on such Debentures to the Redemption Date.

“Special Event” means a Tax Event, an Investment Company Event or a Capital Treatment
Event.

“Special Redemption Date” means a date on which a Special Event redemption occurs,
which shall be a Distribution Payment Date.

“Special Redemption Price” means the price set forth in the following table for any
Special Redemption Date that occurs on the date indicated below (or if such day is not a Business
Day, then the next succeeding Business Day), expressed as the percentage of the principal amount of
the Debentures being redeemed:

	 	 	 	 	 
	Month in which Special Redemption Date	 	 
	Occurs	 	Special Redemption Price
	June 2007
	 	 	104.625	%
	 
	 	 	 	 
	September 2007
	 	 	104.300	%
	 
	 	 	 	 
	December 2007
	 	 	104.000	%
	 
	 	 	 	 
	March 2008
	 	 	103.650	%
	 
	 	 	 	 
	June 2008
	 	 	103.350	%
	 
	 	 	 	 
	September 2008
	 	 	103.000	%
	 
	 	 	 	 
	December 2008
	 	 	102.700	%
	 
	 	 	 	 
	March 2009
	 	 	102.350	%
	 
	 	 	 	 
	June 2009
	 	 	102.050	%
	 
	 	 	 	 
	September 2009
	 	 	101.700	%
	 
	 	 	 	 
	December 2009
	 	 	101.400	%
	 
	 	 	 	 
	March 2010
	 	 	101.050	%
	 
	 	 	 	 
	June 2010
	 	 	100.750	%
	 
	 	 	 	 
	September 2010
	 	 	100.450	%
	 
	 	 	 	 
	December 2010
	 	 	100.200	%
	 
	 	 	 	 
	March 2011 and thereafter
	 	 	100.000	%
	 
	 	 	 	 

plus, in each case, accrued and unpaid Interest on such Debentures to the Special Redemption
Date.

“Tax Event” means the receipt by the Debenture Issuer and the Trust of an opinion of
counsel experienced in such matters to the effect that, as a result of any amendment to or change
(including any announced prospective change) in the laws or any regulations thereunder of the
United States or any political subdivision or taxing authority thereof or therein, or as a result
of any official administrative pronouncement (including any private letter ruling, technical advice
memorandum, field service advice, regulatory procedure, notice or announcement including any notice
or announcement of intent to adopt such procedures or regulations) (an “Administrative
Action”) or judicial decision interpreting or applying such laws or regulations, regardless of
whether such Administrative Action or judicial decision is issued to or in connection with a
proceeding involving the Debenture Issuer or the Trust and whether or not subject to review or
appeal, which amendment, clarification, change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance of the Debentures,
there is more than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the
date of such opinion, subject to United States federal income tax with respect to income received
or accrued on the Debentures; (ii) interest payable by the Debenture Issuer on the Debentures is
not, or within 90 days of the date of such opinion, will not be, deductible by the Debenture
Issuer, in whole or in part, for United States federal income tax purposes; or (iii) the Trust is,
or will be within 90 days of the date of such opinion, subject to more than a de minimis amount of
other taxes, duties or other governmental charges.

(b) Upon the repayment in full at maturity or redemption in whole or in part of the Debentures
(other than following the distribution of the Debentures to the Holders of the Securities), the
proceeds from such repayment or payment shall concurrently be applied to redeem Pro Rata at the
applicable Redemption Price or Special Redemption Price, as applicable, Securities having an
aggregate liquidation amount equal to the aggregate principal amount of the Debentures so repaid or
redeemed; provided, however, that holders of such Securities shall be given not
less than 30 nor more than 60 days’ notice of such redemption (other than at the scheduled maturity
of the Debentures).

(c) If fewer than all the outstanding Securities are to be so redeemed, the Common Securities
and the Capital Securities will be redeemed Pro Rata and the Capital Securities to be redeemed will
be redeemed Pro Rata from each Holder of Capital Securities.

(d) The Trust may not redeem fewer than all the outstanding Capital Securities unless all
accrued and unpaid Distributions have been paid on all Capital Securities for all quarterly
Distribution periods terminating on or before the date of redemption.

(e) Redemption or Distribution Procedures.

(i) Notice of any redemption of, or notice of distribution of the Debentures in
exchange for, the Securities (a “Redemption/Distribution Notice”) will be given by
the Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer than 30
nor more than 60 days before the date fixed for redemption or exchange thereof which, in the
case of a redemption, will be the date fixed for redemption of the Debentures. For purposes
of the calculation of the date of redemption or exchange and the dates on which notices are
given pursuant to this paragraph 4(e)(i), a Redemption/Distribution Notice shall be deemed
to be given on the day such notice is first mailed by first-class mail, postage prepaid, to
Holders of such Securities. Each Redemption/Distribution Notice shall be addressed to the
Holders of such Securities at the address of each such Holder appearing on the books and
records of the Trust. No defect in the Redemption/Distribution Notice or in the mailing
thereof with respect to any Holder shall affect the validity of the redemption or exchange
proceedings with respect to any other Holder.

(ii) If the Securities are to be redeemed and the Trust gives a Redemption/
Distribution Notice, which notice may only be issued if the Debentures are redeemed as set
out in this paragraph 4 (which notice will be irrevocable), then, provided that the
Institutional Trustee has a sufficient amount of cash in connection with the related
redemption or maturity of the Debentures, the Institutional Trustee will pay the relevant
Redemption Price or Special Redemption Price, as applicable, to the Holders of such
Securities by check mailed to the address of each such Holder appearing on the books and
records of the Trust on the Redemption Date. If a Redemption/Distribution Notice shall have
been given and funds deposited as required then immediately prior to the close of business
on the date of such deposit Distributions will cease to accrue on the Securities so called
for redemption and all rights of Holders of such Securities so called for redemption will
cease, except the right of the Holders of such Securities to receive the applicable
Redemption Price or Special Redemption Price specified in paragraph 4(a), but without
interest on such Redemption Price or Special Redemption Price. If payment of the Redemption
Price or Special Redemption Price in respect of any Securities is improperly withheld or
refused and not paid either by the Trust or by the Debenture Issuer as guarantor pursuant to
the Guarantee, Distributions on such Securities will continue to accrue at the Distribution
Rate from the original Redemption Date to the actual date of payment, in which case the
actual payment date will be considered the date fixed for redemption for purposes of
calculating the Redemption Price or Special Redemption Price. In the event of any
redemption of the Capital Securities issued by the Trust in part, the Trust shall not be
required to (i) issue, register the transfer of or exchange any Security during a period
beginning at the opening of business fifteen days before any selection for redemption of the
Capital Securities and ending at the close of business on the earliest date on which the
relevant notice of redemption is deemed to have been given to all Holders of the Capital
Securities to be so redeemed or (ii) register the transfer of or exchange any Capital
Securities so selected for redemption, in whole or in part, except for the unredeemed
portion of any Capital Securities being redeemed in part.

(iii) Redemption/Distribution Notices shall be sent by the Administrators on behalf of
the Trust to (A) in respect of the Capital Securities, the Holders thereof and (B) in
respect of the Common Securities, the Holder thereof.

(iv) Subject to the foregoing and applicable law (including, without limitation, United
States federal securities laws), and provided that the acquiror is not the Holder of the
Common Securities or the obligor under the Indenture, the Sponsor or any of its subsidiaries
may at any time and from time to time purchase outstanding Capital Securities by tender, in
the open market or by private agreement.

5. Voting Rights — Capital Securities.

(a) Except as provided under paragraphs 5(b) and 7 and as otherwise required by law and the
Declaration, the Holders of the Capital Securities will have no voting rights. The Administrators
are required to call a meeting of the Holders of the Capital Securities if directed to do so by
Holders of at least 10% in liquidation amount of the Capital Securities.

(b) Subject to the requirements of obtaining a tax opinion by the Institutional Trustee in
certain circumstances set forth in the last sentence of this paragraph, the Holders of a Majority
in liquidation amount of the Capital Securities, voting separately as a class, have the right to
direct the time, method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee
under the Declaration, including the right to direct the Institutional Trustee, as holder of the
Debentures, to (i) exercise the remedies available under the Indenture as the holder of the
Debentures, (ii) waive any past default that is waivable under the Indenture, (iii) exercise any
right to rescind or annul a declaration that the principal of all the Debentures shall be due and
payable or (iv) consent on behalf of all the Holders of the Capital Securities to any amendment,
modification or termination of the Indenture or the Debentures where such consent shall be
required; provided, however, that, where a consent or action under the Indenture
would require the consent or act of the holders of greater than a simple majority in aggregate
principal amount of Debentures (a “Super Majority”) affected thereby, the Institutional
Trustee may only give such consent or take such action at the written direction of the Holders of
at least the proportion in liquidation amount of the Capital Securities outstanding which the
relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding.
If the Institutional Trustee fails to enforce its rights under the Debentures after the Holders of
a Majority in liquidation amount of such Capital Securities have so directed the Institutional
Trustee, to the fullest extent permitted by law, a Holder of the Capital Securities may institute a
legal proceeding directly against the Debenture Issuer to enforce the Institutional Trustee’s
rights under the Debentures without first instituting any legal proceeding against the
Institutional Trustee or any other person or entity. Notwithstanding the foregoing, if an Event of
Default has occurred and is continuing and such event is attributable to the failure of the
Debenture Issuer to pay interest or principal on the Debentures on the date the interest or
principal is payable (or in the case of redemption, the Redemption Date or the Special Redemption
Date, as applicable), then a Holder of record of the Capital Securities may directly institute a
proceeding for enforcement of payment, on or after the respective due dates specified in the
Debentures, to such Holder directly of the principal of or interest on the Debentures having an
aggregate principal amount equal to the aggregate liquidation amount of the Capital Securities of
such Holder. The Institutional Trustee shall notify all Holders of the Capital Securities of any
default actually known to the Institutional Trustee with respect to the Debentures unless (x) such
default has been cured prior to the giving of such notice or (y) the Institutional Trustee
determines in good faith that the withholding of such notice is in the interest of the Holders of
such Capital Securities, except where the default relates to the payment of principal of or
interest on any of the Debentures. Such notice shall state that such Indenture Event of Default
also constitutes an Event of Default hereunder. Except with respect to directing the time, method
and place of conducting a proceeding for a remedy, the Institutional Trustee shall not take any of
the actions described in clauses (i), (ii) or (iii) above unless the Institutional Trustee has
obtained an opinion of tax counsel to the effect that, as a result of such action, the Trust will
not be classified as other than a grantor trust for United States federal income tax purposes.

In the event the consent of the Institutional Trustee, as the holder of the Debentures, is
required under the Indenture with respect to any amendment, modification or termination of the
Indenture, the Institutional Trustee shall request the direction of the Holders of the Securities
with respect to such amendment, modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation amount of the
Securities voting together as a single class; provided, however, that where a
consent under the Indenture would require the consent of a Super-Majority, the Institutional
Trustee may only give such consent at the direction of the Holders of at least the proportion in
liquidation amount of the Securities outstanding which the relevant Super-Majority represents of
the aggregate principal amount of the Debentures outstanding. The Institutional Trustee shall not
take any such action in accordance with the directions of the Holders of the Securities unless the
Institutional Trustee has obtained an opinion of tax counsel to the effect that, as a result of
such action, the Trust will not be classified as other than a grantor trust for United States
federal income tax purposes.

A waiver of an Indenture Event of Default will constitute a waiver of the corresponding Event
of Default hereunder. Any required approval or direction of Holders of the Capital Securities may
be given at a separate meeting of Holders of the Capital Securities convened for such purpose, at a
meeting of all of the Holders of the Securities in the Trust or pursuant to written consent. The
Institutional Trustee will cause a notice of any meeting at which Holders of the Capital Securities
are entitled to vote, or of any matter upon which action by written consent of such Holders is to
be taken, to be mailed to each Holder of record of the Capital Securities. Each such notice will
include a statement setting forth the following information (i) the date of such meeting or the
date by which such action is to be taken, (ii) a description of any resolution proposed for
adoption at such meeting on which such Holders are entitled to vote or of such matter upon which
written consent is sought and (iii) instructions for the delivery of proxies or consents. No vote
or consent of the Holders of the Capital Securities will be required for the Trust to redeem and
cancel Capital Securities or to distribute the Debentures in accordance with the Declaration and
the terms of the Securities.

Notwithstanding that Holders of the Capital Securities are entitled to vote or consent under
any of the circumstances described above, any of the Capital Securities that are owned by the
Sponsor or any Affiliate of the Sponsor shall not entitle the Holder thereof to vote or consent and
shall, for purposes of such vote or consent, be treated as if such Capital Securities were not
outstanding.

In no event will Holders of the Capital Securities have the right to vote to appoint, remove
or replace the Administrators, which voting rights are vested exclusively in the Sponsor as the
Holder of all of the Common Securities of the Trust. Under certain circumstances as more fully
described in the Declaration, Holders of Capital Securities have the right to vote to appoint,
remove or replace the Institutional Trustee and the Delaware Trustee.

6. Voting Rights — Common Securities.

(a) Except as provided under paragraphs 6(b), 6(c) and 7 and as otherwise required by law and
the Declaration, the Common Securities will have no voting rights.

(b) The Holders of the Common Securities are entitled, in accordance with Article IV of the
Declaration, to vote to appoint, remove or replace any Administrators.

(c) Subject to Section 6.7 of the Declaration and only after each Event of Default (if any)
with respect to the Capital Securities has been cured, waived, or otherwise eliminated and subject
to the requirements of the second to last sentence of this paragraph, the Holders of a Majority in
liquidation amount of the Common Securities, voting separately as a class, may direct the time,
method, and place of conducting any proceeding for any remedy available to the Institutional
Trustee, or exercising any trust or power conferred upon the Institutional Trustee under the
Declaration, including (i) directing the time, method, place of conducting any proceeding for any
remedy available to the Debenture Trustee, or exercising any trust or power conferred on the
Debenture Trustee with respect to the Debentures, (ii) waiving any past default and its
consequences that is waivable under the Indenture, or (iii) exercising any right to rescind or
annul a declaration that the principal of all the Debentures shall be due and payable;
provided, however, that, where a consent or action under the Indenture would
require a Super Majority, the Institutional Trustee may only give such consent or take such action
at the written direction of the Holders of at least the proportion in liquidation amount of the
Common Securities which the relevant Super Majority represents of the aggregate principal amount of
the Debentures outstanding. Notwithstanding this paragraph 6(c), the Institutional Trustee shall
not revoke any action previously authorized or approved by a vote or consent of the Holders of the
Capital Securities. Other than with respect to directing the time, method and place of conducting
any proceeding for any remedy available to the Institutional Trustee or the Debenture Trustee as
set forth above, the Institutional Trustee shall not take any action described in (i), (ii) or
(iii) above, unless the Institutional Trustee has obtained an opinion of tax counsel to the effect
that for the purposes of United States federal income tax the Trust will not be classified as other
than a grantor trust on account of such action. If the Institutional Trustee fails to enforce its
rights, to the fullest extent permitted by law, under the Declaration, any Holder of the Common
Securities may institute a legal proceeding directly against any Person to enforce the
Institutional Trustee’s rights under the Declaration, without first instituting a legal proceeding
against the Institutional Trustee or any other Person.

Any approval or direction of Holders of the Common Securities may be given at a separate
meeting of Holders of the Common Securities convened for such purpose, at a meeting of all of the
Holders of the Securities in the Trust or pursuant to written consent. The Administrators will
cause a notice of any meeting at which Holders of the Common Securities are entitled to vote, or of
any matter upon which action by written consent of such Holders is to be taken, to be mailed to
each Holder of the Common Securities. Each such notice will include a statement setting forth
(i) the date of such meeting or the date by which such action is to be taken, (ii) a description of
any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or
of such matter upon which written consent is sought and (iii) instructions for the delivery of
proxies or consents.

No vote or consent of the Holders of the Common Securities will be required for the Trust to
redeem and cancel Common Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities.

7. Amendments to Declaration and Indenture.

(a) In addition to any requirements under Section 11.1 of the Declaration, if any proposed
amendment to the Declaration provides for, or the Trustees, Sponsor or Administrators otherwise
propose to effect, (i) any action that would adversely affect the powers, preferences or special
rights of the Securities, whether by way of amendment to the Declaration or otherwise, or (ii) the
Liquidation of the Trust, other than as described in Section 7.1 of the Declaration, then the
Holders of outstanding Securities, voting together as a single 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 Securities, affected
thereby; provided, however, if any amendment or proposal referred to in clause
(i) above would adversely affect only the Capital Securities or only the Common Securities, then
only the affected 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 a Majority in liquidation amount of
such class of Securities.

(b) In the event the consent of the Institutional Trustee as the holder of the Debentures is
required under the Indenture with respect to any amendment, modification or termination of the
Indenture or the Debentures, the Institutional Trustee shall request the written direction of the
Holders of the Securities with respect to such amendment, modification or termination and shall
vote with respect to such amendment, modification, or termination as directed by a Majority in
liquidation amount of the Securities voting together as a single class; provided,
however, that where a consent under the Indenture would require a Super Majority, the
Institutional Trustee may only give such consent at the direction of the Holders of at least the
proportion in liquidation amount of the Securities which the relevant Super Majority represents of
the aggregate principal amount of the Debentures outstanding.

(c) Notwithstanding the foregoing, no amendment or modification may be made to the Declaration
if such amendment or modification would (i) cause the Trust to be classified for purposes of United
States federal income taxation as other than a grantor trust, (ii) reduce or otherwise adversely
affect the powers of the Institutional Trustee or (iii) cause the Trust to be deemed an Investment
Company which is required to be registered under the Investment Company Act.

(d) Notwithstanding any provision of the Declaration, the right of any Holder of the Capital
Securities to receive payment of distributions and other payments upon redemption or otherwise, on
or after their respective due dates, or to institute a suit for the enforcement of any such payment
on or after such respective dates, shall not be impaired or affected without the consent of such
Holder. For the protection and enforcement of the foregoing provision, each and every Holder of the
Capital Securities shall be entitled to such relief as can be given either at law or equity.

8. Pro Rata. A reference in these terms of the Securities to any payment,
distribution or treatment as being “Pro Rata” shall mean pro rata to each Holder of the
Securities according to the aggregate liquidation amount of the Securities held by the relevant
Holder in relation to the aggregate liquidation amount of all Securities then outstanding unless,
in relation to a payment, an Event of Default has occurred and is continuing, in which case any
funds available to make such payment shall be paid first to each Holder of the Capital Securities
Pro Rata according to the aggregate liquidation amount of the Capital Securities held by the
relevant Holder relative to the aggregate liquidation amount of all Capital Securities outstanding,
and only after satisfaction of all amounts owed to the Holders of the Capital Securities, to each
Holder of the Common Securities Pro Rata according to the aggregate liquidation amount of the
Common Securities held by the relevant Holder relative to the aggregate liquidation amount of all
Common Securities outstanding.

9. Ranking. The Capital Securities rank pari passu with and payment thereon shall be
made Pro Rata with the Common Securities except that, where an Event of Default has occurred and is
continuing, the rights of Holders of the Common Securities to receive payment of Distributions and
payments upon liquidation, redemption and otherwise are subordinated to the rights of the Holders
of the Capital Securities with the result that no payment of any Distribution on, or Redemption
Price (or Special Redemption Price) of, any Common Security, and no other payment on account of
redemption, liquidation or other acquisition of Common Securities, shall be made unless payment in
full in cash of all accumulated and unpaid Distributions on all outstanding Capital Securities for
all distribution periods terminating on or prior thereto, or in the case of payment of the
Redemption Price (or Special Redemption Price) the full amount of such Redemption Price (or Special
Redemption Price) on all outstanding Capital Securities then called for redemption, shall have been
made or provided for, and all funds immediately available to the Institutional Trustee shall first
be applied to the payment in full in cash of all Distributions on, or the Redemption Price (or
Special Redemption Price) of, the Capital Securities then due and payable.

10. Acceptance of Guarantee and Indenture. Each Holder of the Capital Securities and
the Common Securities, by the acceptance of such Securities, agrees to the provisions of the
Guarantee, including the subordination provisions therein and to the provisions of the Indenture.

11. No Preemptive Rights. The Holders of the Securities shall have no preemptive or
similar rights to subscribe for any additional securities.

12. Miscellaneous. These terms constitute a part of the Declaration. The Sponsor will
provide a copy of the Declaration, the Guarantee, and the Indenture to a Holder without charge on
written request to the Sponsor at its principal place of business.

5

EXHIBIT A-1

FORM OF CAPITAL SECURITY CERTIFICATE

[FORM OF FACE OF SECURITY]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE SPONSOR OR THE TRUST,
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT,
(C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF
SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL SECURITY FOR
ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE SPONSOR’S AND THE TRUST’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE
DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE SPONSOR OR THE TRUST. HEDGING
TRANSACTIONS INVOLVING THIS SECURITY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
ACT.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT
IT IS NOT AN EMPLOYEE BENEFIT, 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”) (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 THE SECURITIES OR ANY INTEREST
THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S.
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR
ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY
PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY
ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) 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, OR (ii)
SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT
OF NOT LESS THAN $100,000.00 (100 SECURITIES) AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF. ANY
ATTEMPTED TRANSFER OF SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $100,000.00
SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER.

THE HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE DECLARATION TO CONFIRM THAT THE
TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

Certificate Number P-1 20,000 Capital Securities

[CUSIP NO. [     ] **To be inserted at the request of the Holder]

March 22, 2007

Certificate Evidencing Floating Rate Capital Securities

of

Sterling Financial Statutory Trust V

(liquidation amount $1,000.00 per Capital Security)

Sterling Financial Statutory Trust V, a statutory trust created under the laws of the State of
Delaware (the “Trust”), hereby certifies that Hare & Co. (the “Holder”), as the nominee of The Bank
of New York, indenture trustee under the Indenture dated as of March 22, 2007 among Preferred Term
Securities XXV, Ltd., Preferred Term Securities XXV, Inc. and The Bank of New York, is the
registered owner of capital securities of the Trust representing undivided beneficial interests in
the assets of the Trust, (liquidation amount $1,000.00 per capital security) (the “Capital
Securities”). Subject to the Declaration (as defined below), the Capital 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. The Capital
Securities represented hereby are issued pursuant to, and the designation, rights, privileges,
restrictions, preferences and other terms and provisions of the Capital Securities shall in all
respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the
Trust dated as of March 22, 2007, among Tito L. Lima and Thomas J. Paholsky, as Administrators,
Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company, as Institutional Trustee,
Sterling Financial Corporation, as Sponsor, and the holders from time to time of undivided
beneficial interests in the assets of the Trust, including the designation of the terms of the
Capital Securities as set forth in Annex I to such amended and restated declaration as the same may
be amended from time to time (the “Declaration”). Capitalized terms used herein but not defined
shall have the meaning given them in the Declaration. The Holder is entitled to the benefits of the
Guarantee to the extent provided therein. The Sponsor will provide a copy of the Declaration, the
Guarantee, and the Indenture to the Holder without charge upon written request to the Sponsor at
its principal place of business.

Upon receipt of this Security, the Holder is bound by the Declaration and is entitled to the
benefits thereunder.

By acceptance of this Security, the Holder agrees to treat, for United States federal income
tax purposes, the Debentures as indebtedness and the Capital Securities as evidence of beneficial
ownership in the Debentures.

This Capital Security is governed by, and construed in accordance with, the laws of the State
of Delaware, without regard to principles of conflict of laws.

Signatures appear on following page

6

IN WITNESS WHEREOF, the Trust has duly executed this certificate.

STERLING FINANCIAL STATUTORY TRUST V

By:

Name:

Title: Administrator

CERTIFICATE OF AUTHENTICATION

This is one of the Capital Securities referred to in the within-mentioned Declaration.

WILMINGTON TRUST COMPANY,

as the Institutional Trustee

By:

Authorized Officer

7

[FORM OF REVERSE OF CAPITAL SECURITY]

Distributions payable on each Capital Security will be payable at an annual rate equal to
7.00% beginning on (and including) the date of original issuance and ending on (but excluding) the
Distribution Payment Date in June 2007 and at an annual rate for each successive period beginning
on (and including) the Distribution Payment Date in June 2007, and each succeeding Distribution
Payment Date, and ending on (but excluding) the next succeeding Distribution Payment Date (each a
“Distribution Period”), equal to 3-Month LIBOR, determined as described below, plus 1.65% (the
“Coupon Rate”), applied to the stated liquidation amount of $1,000.00 per Capital Security, such
rate being the rate of interest payable on the Debentures to be held by the Institutional Trustee.
Distributions in arrears will bear interest thereon compounded quarterly at the Distribution Rate
(to the extent permitted by applicable law). The term “Distributions” as used herein includes cash
distributions and any such compounded distributions unless otherwise noted. A Distribution is
payable only to the extent that payments are made in respect of the Debentures held by the
Institutional Trustee and to the extent the Institutional Trustee has funds available therefor. As
used herein, “Determination Date” means the date that is two London Banking Days (i.e., a business
day in which dealings in deposits in U.S. dollars are transacted in the London interbank market)
preceding the commencement of the relevant Distribution Period. The amount of the Distribution
payable for any Distribution Period will be calculated by applying the Distribution Rate to the
stated liquidation amount outstanding at the commencement of the Distribution Period on the basis
of the actual number of days in the Distribution Period concerned divided by 360.

“3-Month LIBOR” as used herein, means the London interbank offered interest rate for
three-month U.S. dollar deposits determined by the Debenture Trustee in the following order of
priority: (i) the rate (expressed as a percentage per annum) for U.S. dollar deposits having a
three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date (“Telerate Page 3750” means the display designated as “Page 3750” on the
Moneyline Telerate Service or such other page as may replace Page 3750 on that service or such
other service or services as may be nominated by the British Bankers’ Association as the
information vendor for the purpose of displaying London interbank offered rates for U.S. dollar
deposits); (ii) if such rate cannot be identified on the related Determination Date, the Debenture
Trustee will request the principal London offices of four leading banks in the London interbank
market to provide such banks’ offered quotations (expressed as percentages per annum) to prime
banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of
11:00 a.m. (London time) on such Determination Date. If at least two quotations are provided,
3-Month LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two such
quotations are provided as requested in clause (ii) above, the Debenture Trustee will request four
major New York City banks to provide such banks’ offered quotations (expressed as percentages per
annum) to leading European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such
Determination Date. If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and (iv) if fewer than two such quotations are provided as
requested in clause (iii) above, 3-Month LIBOR will be a 3-Month LIBOR determined with respect to
the Distribution Period immediately preceding such current Distribution Period. If the rate for
U.S. dollar deposits having a three-month maturity that initially appears on Telerate Page 3750 as
of 11:00 a.m. (London time) on the related Determination Date is superseded on the Telerate Page
3750 by a corrected rate by 12:00 noon (London time) on such Determination Date, then the corrected
rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such
Determination Date.

The Distribution Rate for any Distribution Period will at no time be higher than the maximum
rate then permitted by New York law as the same may be modified by United States law.

All percentages resulting from any calculations on the Capital Securities will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of
a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or
        .0987655), and all dollar amounts used in or resulting from such calculation will be rounded to the
nearest cent (with one-half cent being rounded upward)).

Except as otherwise described below, Distributions on the Capital Securities will be
cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears
on March 15, June 15, September 15 and December 15 of each year or if any such day is not a
Business Day, then the next succeeding Business Day (each such day, a “Distribution Payment Date”)
(it being understood that interest accrues for any such non-Business Day), commencing on the
Distribution Payment Date in June 2007. The Debenture Issuer has the right under the Indenture to
defer payments of interest on the Debentures, so long as no Acceleration Event of Default has
occurred and is continuing, by extending the interest payment period for up to 20 consecutive
quarterly periods (each an “Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no interest shall be due
and payable. During any Extension Period, interest will continue to accrue on the Debentures, and
interest on such accrued interest will accrue at an annual rate equal to the Distribution Rate in
effect for each such Extension Period, compounded quarterly from the date such interest would have
been payable were it not for the Extension Period, to the extent permitted by law (such interest
referred to herein as “Additional Interest”). No Extension Period may end on a date other than a
Distribution Payment Date. At the end of any such Extension Period, the Debenture Issuer shall pay
all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon);
provided, however, that no Extension Period may extend beyond the Maturity Date.
Prior to the termination of any Extension Period, the Debenture Issuer may further extend such
period, provided that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity
Date. Upon the termination of any Extension Period and upon the payment of all accrued and unpaid
interest and Additional Interest, the Debenture Issuer may commence a new Extension Period, subject
to the foregoing requirements. No interest or Additional Interest shall be due and payable during
an Extension Period, except at the end thereof, but each installment of interest that would
otherwise have been due and payable during such Extension Period shall bear Additional Interest.
During any Extension Period, Distributions on the Capital Securities shall be deferred for a period
equal to the Extension Period. If Distributions are deferred, the Distributions due shall be paid
on the date that the related Extension Period terminates, to Holders of the Securities as they
appear on the books and records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available for Distribution
to the Holders of the Securities will be limited to payments received from the Debenture Issuer.
The payment of Distributions out of moneys held by the Trust is guaranteed by the Guarantor
pursuant to the Guarantee.

The Capital Securities shall be redeemable as provided in the Declaration.

8

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital Security 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 Capital Security 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 Capital Security Certificate)

Signature Guarantee:1

9

EXHIBIT A-2

FORM OF COMMON SECURITY CERTIFICATE

THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, 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 SECTION 8.1 OF THE DECLARATION.

Certificate Number C-1 619 Common Securities

March 22, 2007

Certificate Evidencing Floating Rate Common Securities

of

Sterling Financial Statutory Trust V

Sterling Financial Statutory Trust V, a statutory trust created under the laws of the State of
Delaware (the “Trust”), hereby certifies that Sterling Financial Corporation (the “Holder”) is the
registered owner of common securities of the Trust representing undivided beneficial interests in
the assets of the Trust (the “Common Securities”). The Common Securities represented hereby are
issued pursuant to, and the designation, rights, privileges, restrictions, preferences and other
terms and provisions of the Common Securities shall in all respects be subject to, the provisions
of the Amended and Restated Declaration of Trust of the Trust dated as of March 22, 2007, among
Tito L. Lima and Thomas J. Paholsky, as Administrators, Wilmington Trust Company, as Delaware
Trustee, Wilmington Trust Company, as Institutional Trustee, Sterling Financial Corporation, as
Sponsor, and the holders from time to time of undivided beneficial interest in the assets of the
Trust including the designation of the terms of the Common Securities as set forth in Annex I to
such amended and restated declaration, as the same may be amended from time to time (the
“Declaration”). Capitalized terms used herein but not defined shall have the meaning given them in
the Declaration. The Holder is entitled to the benefits of the Guarantee to the extent provided
therein. The Sponsor will provide a copy of the Declaration, the Guarantee and the Indenture to
the Holder without charge upon written request to the Sponsor at its principal place of business.

As set forth in the Declaration, when an Event of Default has occurred and is continuing, the
rights of Holders of Common Securities to payment in respect of Distributions and payments upon
Liquidation, redemption or otherwise are subordinated to the rights of payment of Holders of the
Capital Securities.

Upon receipt of this Certificate, the Holder is bound by the Declaration and is entitled to
the benefits thereunder.

By acceptance of this Certificate, the Holder agrees to treat, for United States federal
income tax purposes, the Debentures as indebtedness and the Common Securities as evidence of
undivided beneficial ownership in the Debentures.

This Common Security is governed by, and construed in accordance with, the laws of the State
of Delaware, without regard to principles of conflict of laws.

1 Signature must be guaranteed by an
“eligible guarantor institution” that is a bank, stockbroker,
savings and loan association or credit union meeting the requirements of the
Security registrar, which requirements include membership or participation in
the Securities Transfer Agents Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the
Security registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

10

IN WITNESS WHEREOF, the Trust has duly executed this certificate.

STERLING FINANCIAL STATUTORY TRUST V

By:

Name:

Title: Administrator

11

[FORM OF REVERSE OF COMMON SECURITY]

Distributions payable on each Common Security will be payable at an annual rate equal to 7.00%
beginning on (and including) the date of original issuance and ending on (but excluding) the
Distribution Payment Date in June 2007 and at an annual rate for each successive period beginning
on (and including) the Distribution Payment Date in June 2007, and each succeeding Distribution
Payment Date, and ending on (but excluding) the next succeeding Distribution Payment Date (each a
“Distribution Period”), equal to 3-Month LIBOR, determined as described below, plus 1.65% (the
“Coupon Rate”), applied to the stated liquidation amount of $1,000.00 per Common Security, such
rate being the rate of interest payable on the Debentures to be held by the Institutional Trustee.
Distributions in arrears will bear interest thereon compounded quarterly at the Distribution Rate
(to the extent permitted by applicable law). The term “Distributions” as used herein includes cash
distributions and any such compounded distributions unless otherwise noted. A Distribution is
payable only to the extent that payments are made in respect of the Debentures held by the
Institutional Trustee and to the extent the Institutional Trustee has funds available therefor. As
used herein, “Determination Date” means the date that is two London Banking Days (i.e., a business
day in which dealings in deposits in U.S. dollars are transacted in the London interbank market)
preceding the commencement of the relevant Distribution Period. The amount of the Distribution
payable for any Distribution Period will be calculated by applying the Distribution Rate to the
stated liquidation amount outstanding at the commencement of the Distribution Period on the basis
of the actual number of days in the Distribution Period concerned divided by 360.

“3-Month LIBOR” as used herein, means the London interbank offered interest rate for
three-month U.S. dollar deposits determined by the Debenture Trustee in the following order of
priority: (i) the rate (expressed as a percentage per annum) for U.S. dollar deposits having a
three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the
related Determination Date (“Telerate Page 3750” means the display designated as “Page 3750” on the
Moneyline Telerate Service or such other page as may replace Page 3750 on that service or such
other service or services as may be nominated by the British Bankers’ Association as the
information vendor for the purpose of displaying London interbank offered rates for U.S. dollar
deposits); (ii) if such rate cannot be identified on the related Determination Date, the Debenture
Trustee will request the principal London offices of four leading banks in the London interbank
market to provide such banks’ offered quotations (expressed as percentages per annum) to prime
banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of
11:00 a.m. (London time) on such Determination Date. If at least two quotations are provided,
3-Month LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two such
quotations are provided as requested in clause (ii) above, the Debenture Trustee will request four
major New York City banks to provide such banks’ offered quotations (expressed as percentages per
annum) to leading European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such
Determination Date. If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and (iv) if fewer than two such quotations are provided as
requested in clause (iii) above, 3-Month LIBOR will be a 3-Month LIBOR determined with respect to
the Distribution Period immediately preceding such current Distribution Period. If the rate for
U.S. dollar deposits having a three-month maturity that initially appears on Telerate Page 3750 as
of 11:00 a.m. (London time) on the related Determination Date is superseded on the Telerate Page
3750 by a corrected rate by 12:00 noon (London time) on such Determination Date, then the corrected
rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such
Determination Date.

The Distribution Rate for any Distribution Period will at no time be higher than the maximum
rate then permitted by New York law as the same may be modified by United States law.

All percentages resulting from any calculations on the Common Securities will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of
a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or
        .0987655), and all dollar amounts used in or resulting from such calculation will be rounded to the
nearest cent (with one-half cent being rounded upward)).

Except as otherwise described below, Distributions on the Common Securities will be
cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears
on March 15, June 15, September 15 and December 15 of each year or if any such day is not a
Business Day, then the next succeeding Business Day (each such day, a “Distribution Payment Date”)
(it being understood that interest accrues for any such non-Business Day), commencing on the
Distribution Payment Date in June 2007. The Debenture Issuer has the right under the Indenture to
defer payments of interest on the Debentures, so long as no Acceleration Event of Default has
occurred and is continuing, by extending the interest payment period for up to 20 consecutive
quarterly periods (each an “Extension Period”) at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no interest shall be due
and payable. During any Extension Period, interest will continue to accrue on the Debentures, and
interest on such accrued interest will accrue at an annual rate equal to the Distribution Rate in
effect for each such Extension Period, compounded quarterly from the date such interest would have
been payable were it not for the Extension Period, to the extent permitted by law (such interest
referred to herein as “Additional Interest”). No Extension Period may end on a date other than a
Distribution Payment Date. At the end of any such Extension Period, the Debenture Issuer shall pay
all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon);
provided, however, that no Extension Period may extend beyond the Maturity Date.
Prior to the termination of any Extension Period, the Debenture Issuer may further extend such
period, provided that such period together with all such previous and further consecutive
extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity
Date. Upon the termination of any Extension Period and upon the payment of all accrued and unpaid
interest and Additional Interest, the Debenture Issuer may commence a new Extension Period, subject
to the foregoing requirements. No interest or Additional Interest shall be due and payable during
an Extension Period, except at the end thereof, but each installment of interest that would
otherwise have been due and payable during such Extension Period shall bear Additional Interest.
During any Extension Period, Distributions on the Common Securities shall be deferred for a period
equal to the Extension Period. If Distributions are deferred, the Distributions due shall be paid
on the date that the related Extension Period terminates, to Holders of the Securities as they
appear on the books and records of the Trust on the record date immediately preceding such date.
Distributions on the Securities must be paid on the dates payable (after giving effect to any
Extension Period) to the extent that the Trust has funds available for the payment of such
distributions in the Property Account of the Trust. The Trust’s funds available for Distribution to
the Holders of the Securities will be limited to payments received from the Debenture Issuer.

The Common Securities shall be redeemable as provided in the Declaration.

12

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Common Security 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 Common Security 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 Common Security
Certificate)

Signature:

(Sign exactly as your name appears on the other side of this Common Security
Certificate)

Signature Guarantee2

13

EXHIBIT B

SPECIMEN OF INITIAL DEBENTURE

14

(See Document No. 16)

EXHIBIT C

PLACEMENT AGREEMENT

(See Document No. 1)

2 Signature must be guaranteed by an
“eligible guarantor institution” that is a bank, stockbroker,
savings and loan association or credit union, meeting the requirements of the
Security registrar, which requirements include membership or participation in
the Securities Transfer Agents Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the
Security registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

15

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