Document:

EX-10.1

Exhibit 10.1

      

SECURITIES EXCHANGE AGREEMENT

dated as of

April 17, 2009

between

American International Group, Inc.

and

United States Department of the Treasury

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Article 1
	 	 	 	 
	Exchange; Closing
	 	 	 	 
	 
	 	 	 	 
	1.1 Exchange
	 	 	1	 
	1.2 Closing
	 	 	1	 
	1.3 Interpretation
	 	 	3	 
	 
	 	 	 	 
	Article 2
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	2.1 Disclosure
	 	 	4	 
	2.2 Representations and Warranties of the Company
	 	 	4	 
	2.3 Representations and Warranties of the Investor
	 	 	7	 
	 
	 	 	 	 
	Article 3
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	3.1 Consummation of Exchange and Charter Amendment
	 	 	8	 
	3.2 Expenses
	 	 	9	 
	3.3 Exchange Listing
	 	 	9	 
	3.4 Certain Notifications Until Closing
	 	 	9	 
	3.5 Information and Confidentiality
	 	 	10	 
	3.6 Additional Inspection Rights
	 	 	10	 
	3.7 Exchange of Warrant
	 	 	11	 
	3.8 Exchange of Series E Preferred Stock
	 	 	12	 
	3.9 Compliance with the Employ American Workers Act
	 	 	12	 
	3.10 Compliance with Guidelines of the Home Affordable Modification Program
	 	 	12	 
	3.11 Internal Controls
	 	 	12	 
	 
	 	 	 	 
	Article 4
	 	 	 	 
	Additional Agreements
	 	 	 	 
	 
	 	 	 	 
	4.1 Purchase of Restricted Securities
	 	 	13	 
	4.2 Legends
	 	 	13	 
	4.3 Certain Transactions
	 	 	14	 
	4.4 Transfer of Series E Preferred Stock and Exchange Shares
	 	 	14	 
	4.5 Registration Rights
	 	 	14	 
	4.6 Depositary Shares
	 	 	26	 
	4.7 Restriction on Dividends and Repurchases
	 	 	26	 
	4.8 Repurchase of Investor Securities
	 	 	28	 
	4.9 Executive Compensation
	 	 	29	 

i

 

	 	 	 	 	 
	 	 	Page
	4.10 Restrictions on Lobbying
	 	 	32	 
	4.11 Restrictions on Expenses
	 	 	32	 
	4.12 Risk Management Committee
	 	 	32	 
	4.13 Dividend Rate Adjustment
	 	 	32	 
	 
	 	 	 	 
	Article 5
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	5.1 Termination
	 	 	33	 
	5.2 Survival of Representations and Warranties
	 	 	33	 
	5.3 Amendment
	 	 	33	 
	5.4 Waiver of Conditions
	 	 	33	 
	5.5 Governing Law: Submission to Jurisdiction, Etc
	 	 	34	 
	5.6 Notices
	 	 	34	 
	5.7 Definitions
	 	 	35	 
	5.8 Assignment
	 	 	35	 
	5.9 Severability
	 	 	35	 
	5.10 Entire Agreement
	 	 	36	 
	5.11 No Third Party Beneficiaries
	 	 	36	 
	5.12 Survival of Series D Preferred Stock Purchase Agreement
	 	 	36	 

	 	 	 
	SCHEDULE A:

	 	ADDITIONAL TERMS AND CONDITIONS
	SCHEDULE B:

	 	CAPITALIZATION
	 
	 	 
	LIST OF ANNEXES
	 
	 	 
	ANNEX A:

	 	FORM OF CERTIFICATE OF DESIGNATIONS FOR PREFERRED STOCK
	ANNEX B:

	 	FORM OF OPINION

ii

 

INDEX OF DEFINED TERMS

	 	 	 
	 	 	Location of
	Term	 	Definition
	Affiliate
	 	5.7(c)

	Agreement
	 	Recitals

	Appraisal Procedure
	 	4.8(c)(i)

	Benefit Plans
	 	1.2(d)(v)

	Board of Directors
	 	2.2(e)

	Business Combination
	 	5.8

	business day
	 	1.3

	Capitalization Date
	 	2.2(b)

	Certificate of Designations
	 	1.2(d)(iv)

	Certificate of Elimination
	 	1.2(d)(iii)

	Charter
	 	2.2(a)

	Closing
	 	1.2(a)

	Closing Date
	 	1.2(a)

	Common Stock
	 	2.1

	Company
	 	Recitals

	Company Material Adverse Effect
	 	2.1

	Company Subsidiary; Company Subsidiaries
	 	2.2(d)(ii)

	Compensation Regulations
	 	4.9(a)

	Control
	 	4.8(c)(iii)

	control; controlled by; under common control with
	 	5.7(c)

	Covered Employee
	 	4.9(b)(3)

	Credit Agreement
	 	3.5(a)

	EESA
	 	1.2(d)(v)

	Equity Interests
	 	5.7(b)

	Exchange
	 	Recitals

	Exchange Act
	 	3.4

	Exchange Shares
	 	3.7(a)

	Fair Market Value
	 	4.8(c)(ii)

	FRBNY
	 	3.5(a)

	Fund
	 	5.7(b)

	Funds
	 	4.9(e)

	GAAP
	 	2.1

	Governmental Entities
	 	1.2(c)

	Holder
	 	4.5(k)(i)

	Holders’ Counsel
	 	4.5(k)(ii)

	Indemnitee
	 	4.5(g)(i)

	Information
	 	3.5(b)

	Investor
	 	Recitals

	Junior Stock
	 	4.7(c)

	Parity Stock
	 	4.7(c)

	Pending Underwritten Offering
	 	4.5(l)

iii

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	Permitted Repurchases
	 	4.7(a)(ii)

	Piggyback Registration
	 	4.5(a)(iv)

	Plans
	 	1.2(d)(v)

	register; registered; registration
	 	4.5(k)(iii)

	Registrable Securities
	 	4.5(k)(iv)

	Registration Expenses
	 	4.5(k)(v)

	Relevant Period
	 	1.2(d)(v)

	Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415
	 	4.5(k)(vi)

	SEC
	 	2.2(d)(iii)

	Securities Act
	 	2.2(a)

	Selling Expenses
	 	4.5(k)(vii)

	Senior Executive Officers
	 	4.9(b)(1)

	Senior Partners
	 	4.9(b)(1)

	Series C Preferred Stock
	 	2.2(b)

	Series C Preferred Stock Purchase Agreement
	 	3.7(a)

	Series D Preferred Stock
	 	Recitals

	Series D Preferred Stock Purchase Agreement
	 	4.7(a)

	Series E Preferred Stock
	 	Recitals

	Share Dilution Amount
	 	4.7(a)(ii)

	Shelf Registration Statement
	 	4.5(a)(ii)

	Signing Date
	 	2.1

	Special Registration
	 	4.5(i)

	Stockholder Proposal
	 	3.1(b)

	subsidiary
	 	5.7(a)

	Transfer
	 	4.4

	Trust
	 	3.7(a)

	Warrant
	 	3.7(a)

	Warrant Exchange
	 	3.7(a)

iv

 

SECURITIES EXCHANGE AGREEMENT

Recitals:

     WHEREAS, on November 25, 2008, American International Group, Inc. (the “Company”) issued to
the United States Department of the Treasury (the “Investor”) in a private placement 4,000,000
shares of the Series D Fixed Rate Cumulative Perpetual Preferred Stock (the “Series D Preferred
Stock”);

     WHEREAS, the Company and the Investor intend to exchange (the “Exchange”) the 4,000,000 shares
of Series D Preferred Stock for 400,000 shares of the Series E Fixed Rate Non-Cumulative Perpetual
Preferred Stock of the Company (the “Series E Preferred Stock”);

     WHEREAS, the Exchange will be governed by this Securities Exchange Agreement (including the
Schedules and Annexes hereto) (the “Agreement”); and

     WHEREAS, the Investor has tendered consent to the issuance of the Series E Preferred Stock.

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

Article 1

Exchange; Closing

     1.1 Exchange. On the terms and subject to the conditions set forth in this Agreement, the
Investor agrees to deliver to the Company the share certificate representing 4,000,000 shares of
Series D Preferred Stock (the “Series D Preferred Stock Certificate”) with an aggregate liquidation
preference of $40,000,000,000 and the Company agrees to deliver to the Investor a share certificate
representing 400,000 shares of the Series E Preferred Stock with an aggregate liquidation
preference of $41,604,576,000 in exchange for the Series D Preferred Stock Certificate, at the
Closing (as hereinafter defined).

     1.2 Closing.

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

     (b) Subject to the fulfillment or waiver of the conditions to the Closing in this Section 1.2,
at the Closing (i) the Company will deliver the Series E Preferred Stock to the Investor, as
evidenced by one or more certificates dated the Closing Date and bearing

 

 

appropriate legends as hereinafter provided for and (ii) the Investor will deliver the
Series D Preferred Stock Certificate to the Company.

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

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

     (i) (A) the representations and warranties of the Company set forth in Sections 2.2(a)
through (e) shall be true and correct in all material respects as though made on and as of
the Closing Date (other than representations and warranties that by their terms speak as of
another date, which representations and warranties shall be true and correct in all material
respects as of such other date) and (B) the Company shall have performed in all material
respects all obligations required to be performed by it under this Agreement at or prior to
the Closing;

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

     (iii) the Company shall have duly adopted, prior to the consummation of the Exchange,
and filed with the Secretary of State of Delaware, immediately after the consummation of the
Exchange, the certificate of elimination for the Series D Preferred Stock (the “Certificate
of Elimination”) and such filing shall have been accepted;

     (iv) the Company shall have duly adopted, prior to the consummation of the Exchange,
and filed with the Secretary of State of Delaware, prior to the consummation of the
Exchange, the certificate of designations for the Series E Preferred Stock in substantially
the form attached hereto as Annex A (the “Certificate of Designations”) and such filing
shall have been accepted;

     (v) (A) the Company shall have taken all necessary action to effect such changes to its
existing compensation, bonus, incentive and other benefit plans, arrangements and agreements
(including golden parachute, severance and employment agreements) (collectively, “Plans”,
and together with all such plans, arrangements and agreements hereafter adopted, created or
entered into, “Benefit Plans”) with respect to the Senior Executive Officers (and to the
extent necessary for such changes to be legally

2

 

enforceable, each of the Senior Executive Officers shall have duly consented in writing
to such changes), as may be necessary, during the Relevant Period, in order to comply with
Section 111 of the Emergency Economic Stabilization Act of 2008, as amended (the “EESA”),
including the provisions for Systemically Significant Failing Institutions, as implemented
by guidance or regulation issued thereunder, including Notice 2008-PSSFI, that has been
issued and is in effect as of the Closing Date, including provisions prohibiting severance
payments to the Senior Executive Officers, (B) the Company shall have taken all necessary
action to effect such changes to its Plans with respect to the U.S.-based Senior Partners
(and to the extent necessary for such changes to be legally enforceable, each of the
U.S.-based Senior Partners shall have duly consented in writing to such changes), as may be
necessary, during the Relevant Period, in order to comply with the requirements in Section
4.9 of this Agreement (as the requirements referred to in such Section are in effect as of
the Closing Date), (C) the Company shall have used its best efforts to take all necessary
action to effect such changes to its Plans with respect to the other Senior Partners (and to
the extent necessary for such changes to be legally enforceable, to have each of the other
Senior Partners duly consent in writing to such changes), as may be necessary, during the
Relevant Period, in order to comply with the requirements in Section 4.9 of this Agreement
(as the requirements referred to in such Section are in effect as of the Closing Date) and
(D) the Investor shall have received a certificate signed on behalf of the Company by a
senior executive officer certifying to the effect that the conditions set forth in Section
1.2(d)(v)(A) and (B) have been satisfied; “Relevant Period” means the period in which any
obligation of the Company arising from financial assistance provided under the Troubled
Asset Relief Program remains outstanding (excluding any period during which the Federal
government only holds warrants to purchase Common Stock);

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

     (vii) the Company shall have delivered certificates in proper form or, with the prior
consent of the Investor, evidence of shares in book-entry form, evidencing the Series E
Preferred Stock to the Investor or its designee(s).

     (e) The obligation of the Company to consummate the Exchange is also subject to the condition
that the Investor shall have delivered the Series D Preferred Stock Certificate to the Company.

     1.3 Interpretation. When a reference is made in this Agreement to “Recitals,” “Articles,”
“Sections,” “Annexes” or “Schedules” such reference shall be to a Recital, Article or Section of,
or Annex or Schedule to, this Agreement. The terms defined in the singular have a comparable
meaning when used in the plural, and vice versa. References to “herein”, “hereof”, “hereunder” and
the like refer to this Agreement as a whole and not to any particular section or provision, unless
the context requires otherwise. The table of contents and headings contained in this Agreement are
for reference purposes only and are not part of this Agreement. Whenever

3

 

the words “include,” “includes” or “including” are used in this Agreement, they shall be
deemed followed by the words “without limitation.” No rule of construction against the
draftsperson shall be applied in connection with the interpretation or enforcement of this
Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by
counsel. All references to “$” or “dollars” mean the lawful currency of the United States of
America. Except as expressly stated in this Agreement, all references to any statute, rule or
regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced
from time to time (and, in the case of statutes, include any rules and regulations promulgated
under the statute) and to any section of any statute, rule or regulation include any successor to
the section. References to a “business day” shall mean any day except Saturday, Sunday and any day
on which banking institutions in the State of New York generally are authorized or required by law
or other governmental actions to close.

Article 2

Representations and Warranties

     2.1 Disclosure. “Company Material Adverse Effect” means a material adverse effect on (i) the
business, results of operation or financial condition of the Company and its consolidated
subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall not be
deemed to include the effects of (A) changes after the date of this Agreement (the “Signing Date”)
in general business, economic or market conditions (including changes generally in prevailing
interest rates, credit availability and liquidity, currency exchange rates and price levels or
trading volumes in the United States or foreign securities or credit markets), or any outbreak or
escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally
affecting the industries in which the Company and its subsidiaries operate, (B) changes or proposed
changes after the Signing Date in generally accepted accounting principles in the United States
(“GAAP”) or regulatory accounting requirements, or authoritative interpretations thereof, (C)
changes or proposed changes after the Signing Date in securities, insurance and other laws of
general applicability or related policies or interpretations of Governmental Entities (in the case
of each of these clauses (A), (B) and (C), other than changes or occurrences to the extent that
such changes or occurrences have or would reasonably be expected to have a materially
disproportionate adverse effect on the Company and its consolidated subsidiaries taken as a whole
relative to comparable U.S. insurance or financial services organizations), or (D) changes in the
market price or trading volume of the Company’s common stock, par value $2.50 per share (“Common
Stock”), or any other equity, equity-related or debt securities of the Company or its consolidated
subsidiaries (it being understood and agreed that the exception set forth in this clause (D) does
not apply to the underlying reason giving rise to or contributing to any such change); or (ii) the
ability of the Company to consummate the Exchange and the other transactions contemplated by this
Agreement and perform its obligations hereunder on a timely basis.

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

4

 

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

     (b) Capitalization. The authorized capital stock of the Company, and the outstanding
capital stock of the Company (including securities convertible into, or exercisable or exchangeable
for, capital stock of the Company) as of the most recent fiscal month-end preceding the Signing
Date, or such other date as the parties may agree (the “Capitalization Date”), is set forth on
Schedule B. The outstanding shares of capital stock of the Company have been duly
authorized and are validly issued and outstanding, fully paid and non-assessable, and subject to no
preemptive rights (and were not issued in violation of any preemptive rights). As of the Signing
Date, the Company does not have outstanding any securities or other obligations providing the
holder the right to acquire Common Stock that is not reserved for issuance, and the Company has not
made any other commitment to authorize, issue or sell any Common Stock, except as specified on
Schedule B and including the Series C Perpetual, Convertible, Participating Preferred
Stock, par value $5.00 per share (the “Series C Preferred Stock”). Since the Capitalization Date,
the Company has not issued any shares of Common Stock, other than (i) shares issued upon the
exercise of stock options or delivered under other equity-based awards or other convertible
securities or warrants which were issued and outstanding on the Capitalization Date and disclosed
on Schedule B and (ii) shares disclosed on Schedule B.

     (c) Series E Preferred Stock. The Series E Preferred Stock has been duly and validly
authorized, and, when issued and delivered pursuant to this Agreement, such Series E Preferred
Stock will be duly and validly issued and fully paid and non-assessable, will not be issued in
violation of any preemptive rights, and, until the approval by the Company’s stockholders of the
amendment to the Charter to cause the Series D Preferred Stock and any other series of Serial
Preferred Stock (as defined in the Charter) issued to the Investor to rank senior to the Series C
Preferred Stock and any subsequently issued series of Serial Preferred Stock (as defined in the
Charter) that is not initially issued to the Investor, will rank pari passu with all other series
or classes of the Company’s preferred stock, whether or not issued or outstanding, with respect to
the payment of dividends and the distribution of assets in the event of any dissolution,
liquidation or winding up of the Company.

5

 

     (d) Authorization, Enforceability.

     (i) The Company has the corporate power and authority to execute and deliver this
Agreement and, subject to the approval of its stockholders described in Section 3.1(b) and
the corporate authorizations necessary to effect the transactions contemplated by Sections
3.7 and 3.8, to carry out its obligations hereunder (which includes the issuance of the
Series E Preferred Stock). The execution, delivery and performance by the Company of this
Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of the Company and its
stockholders, and no further approval or authorization is required on the part of the
Company or its stockholders, except as described in Section 3.1(b) and the corporate
authorizations necessary to effect the transactions contemplated by Sections 3.7 and 3.8.
This Agreement is a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as the same may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors’ rights generally and general equitable principles, regardless of whether such
enforceability is considered in a proceeding at law or in equity.

     (ii) The execution, delivery and performance by the Company of this Agreement and the
consummation of the transactions contemplated hereby and compliance by the Company with the
provisions hereof, will not (A) violate, conflict with, or result in a breach of any
provision of, or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration of, or result
in the creation of, any lien, security interest, charge or encumbrance upon any of the
properties or assets of the Company or any subsidiary of the Company (each a “Company
Subsidiary” and, collectively, the “Company Subsidiaries”) under any of the terms,
conditions or provisions of (i) subject to the approval of the Company’s stockholders as
described in Section 3.1(b) and the corporate authorizations necessary to effect the
transactions contemplated by Sections 3.7 and 3.8, its organizational documents or (ii) any
note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which the Company or any Company Subsidiary is a party or by
which it or any Company Subsidiary may be bound, or to which the Company or any Company
Subsidiary or any of the properties or assets of the Company or any Company Subsidiary may
be subject, or (B) subject to compliance with the statutes and regulations referred to in
the next paragraph, violate any statute, rule or regulation or any judgment, ruling, order,
writ, injunction or decree applicable to the Company or any Company Subsidiary or any of
their respective properties or assets except, in the case of clauses (A)(ii) and (B), for
those occurrences that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Company Material Adverse Effect.

     (iii) Other than the filing of the Certificate of Designations with the Secretary of
State of Delaware, the Certificate of Elimination with the Secretary of State of

6

 

Delaware, any current report on Form 8-K required to be filed with the Securities and
Exchange Commission (the “SEC”), such filings and approvals as are required to be made or
obtained under any state “blue sky” laws, the filing of any proxy statement contemplated by
Section 3.1(b), any filings or approvals required in connection with the transactions
contemplated by Sections 3.7 and 3.8 and such as have been made or obtained, no notice to,
filing with, exemption or review by, or authorization, consent or approval of, any
Governmental Entity is required to be made or obtained by the Company in connection with the
consummation by the Company of the Exchange except for any such notices, filings,
exemptions, reviews, authorizations, consents and approvals the failure of which to make or
obtain would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect.

     (e) Anti-takeover Provisions and Rights Plan. The Board of Directors of the Company
(the “Board of Directors”) has taken all necessary action to ensure that the transactions
contemplated by this Agreement and the consummation of the transactions contemplated hereby will be
exempt from any anti-takeover or similar provisions of the Company’s Charter and bylaws, and any
other provisions of any applicable “moratorium”, “control share”, “fair price”, “interested
stockholder” or other anti-takeover laws and regulations of any jurisdiction. The Company has
taken all actions necessary to render any stockholders’ rights plan of the Company inapplicable to
this Agreement and the consummation of the transactions contemplated hereby.

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

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

     (h) No Inconsistent Agreement. Prior to the Signing Date, the Company has not entered
into an agreement with respect to its securities that is inconsistent with the order of priority
set forth in Section 4.5(a)(vi) for the offering of securities under a Shelf Registration Statement
pursuant to Section 4.5(a)(ii) or a Piggyback Registration under Section 4.5(a)(iv).

     2.3 Representations and Warranties of the Investor. The Investor represents and warrants to
the Company that as of the Signing Date and as of the Closing Date:

     (a) Ownership of Series D Preferred Stock. The Investor has good and unencumbered
title to 4,000,000 shares of Series D Preferred Stock, free and clear of all pledges, security

7

 

interests, liens, claims, encumbrances, rights of first refusal, and options of any kind
whatsoever (other than any applicable federal and state securities law restrictions).

     (b) No Encumbrances. The Investor has full right, power and authority to consummate
the Exchange and upon completion of the Exchange the Company shall receive the 4,000,000 shares of
Series D Preferred Stock, free and clear of all pledges, security interests, liens, claims,
encumbrances, rights of first refusal, and options of any kind whatsoever (other than any
applicable federal and state securities law restrictions).

Article 3

Covenants

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

     (b) At and prior to the next annual meeting of the Company’s stockholders following the
Closing Date, the Company shall take all action necessary under all applicable laws and regulations
and the Charter to vote at such meeting on a proposal (the “Stockholder Proposal”) to amend the
Charter to (i) permit the Board of Directors to issue classes of Serial Preferred Stock (as defined
in the Charter) that are not of equal rank, such that the Board of Directors or a duly authorized
committee thereof may, prior to issuance, in the resolution or resolutions providing for the issue
of shares of each particular series, provide whether the shares of such series rank senior or
junior to any other class of Serial Preferred Stock as to the right to receive dividends and the
right to receive payments out of the assets of the Company upon voluntary or involuntary
liquidation, dissolution or winding up of the Company and (ii) cause the Series E Preferred Stock
and any other series of Serial Preferred Stock subsequently issued to the Investor to rank senior
to the Series C Preferred Stock and any other subsequently issued series of Serial Preferred Stock
that is not issued to the Investor, so that as a result of these amendments the Series C Preferred
Stock and any subsequently issued series of Serial Preferred Stock that ranks pari passu with or
junior to the Series C Preferred Stock would not be entitled to vote on the subsequent creation or
issuance of any such senior Serial Preferred Stock. In connection with such meeting, the Company
shall prepare (and the Investor will reasonably cooperate with the Company to prepare) and file
with the SEC a preliminary proxy statement, shall use its reasonable best efforts to respond to any
comments of the SEC or its staff thereon and to cause a definitive proxy statement related to such
stockholders’ meeting to be mailed to the Company’s stockholders not more than five business days
after clearance thereof by the SEC. The Company shall notify the Investor promptly of the receipt
of any comments from the SEC or its staff with respect to the proxy statement and of any request by
the SEC or its staff for amendments or supplements to such proxy statement or for additional
information and will supply the Investor

8

 

with copies of all correspondence between the Company or any of its representatives, on the
one hand, and the SEC or its staff, on the other hand, with respect to such proxy statement. If at
any time prior to such stockholders’ meeting there shall occur any event that is required to be set
forth in an amendment or supplement to the proxy statement, the Company shall as promptly as
practicable prepare and mail to its stockholders such an amendment or supplement. Each of the
Investor and the Company agrees promptly to correct any information provided by it or on its behalf
for use in the proxy statement if and to the extent that such information shall have become false
or misleading in any material respect, and the Company shall as promptly as practicable prepare and
mail to its stockholders an amendment or supplement to correct such information to the extent
required by applicable laws and regulations. The Company shall consult with the Investor prior to
filing any proxy statement, or any amendment or supplement thereto, and provide the Investor with a
reasonable opportunity to comment thereon. In the event that the approval of the Stockholder
Proposal is not obtained at such annual stockholders meeting, the Company shall include a proposal
to approve such proposal at a meeting of its stockholders no less than once in each subsequent
twelve-month period beginning on June 1, 2009 until such approval is obtained or made.

     (c) None of the information supplied by the Company or any of the Company Subsidiaries for
inclusion in any proxy statement in connection with any such stockholders meeting of the Company
will, at the date it is filed with the SEC, when first mailed to the Company’s stockholders and at
the time of any stockholders meeting, and at the time of any amendment or supplement thereof,
contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they are made, not
misleading.

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

     3.3 Exchange Listing. If requested by the Investor, the Company shall promptly use its
reasonable best efforts to cause the Series E Preferred Stock to be approved for listing on a
national securities exchange as promptly as practicable following such request.

     3.4 Certain Notifications Until Closing. From the Signing Date until the Closing, the Company
shall promptly notify the Investor of (i) any fact, event or circumstance of which it is aware and
which would reasonably be expected to cause any representation or warranty of the Company contained
in this Agreement to be untrue or inaccurate in any material respect or to cause any covenant or
agreement of the Company contained in this Agreement not to be complied with or satisfied in any
material respect and (ii) except as set forth or incorporated by reference in the Company’s Annual
Report on Form 10-K for the most recently completed fiscal year of the Company filed with the SEC
or in the Company’s other publicly available reports and forms filed with or furnished to the SEC
under Sections 13(a), 14(a) or 15(d) of the Securities Exchange Act of 1934, as amended from time
to time (the “Exchange Act”), on or after December 31, 2008 and prior to the Signing Date, any
fact, circumstance, event, change,

9

 

occurrence, condition or development of which the Company is aware and which, individually or
in the aggregate, has had or would reasonably be expected to have a Company Material Adverse
Effect; provided, however, that delivery of any notice pursuant to this Section 3.4 shall not limit
or affect any rights of or remedies available to the Investor; provided, further, that a failure to
comply with this Section 3.4 shall not constitute a breach of this Agreement or the failure of any
condition set forth in Section 1.2 to be satisfied unless the underlying Company Material Adverse
Effect or material breach would independently result in the failure of a condition set forth in
Section 1.2 to be satisfied.

     3.5 Information and Confidentiality.

     (a) Until such time as the Investor ceases to own any Series E Preferred Stock, or except as
otherwise agreed, the Company shall provide the Investor (i) the information required to be
provided by the Company to the Federal Reserve Bank of New York (“FRBNY”) pursuant to Section 5.04
of the Credit Agreement dated as of September 22, 2008 between the Company and the FRBNY, as
amended from time to time (the “Credit Agreement”) and within the time periods for delivery thereof
specified in the Credit Agreement and (ii) the notices required by Section 5.05 of the Credit
Agreement and within the time periods for delivery thereof specified in the Credit Agreement.
After the termination of the Credit Agreement, such informational and notice requirements as are
provided in Section 5.04 and Section 5.05 of the Credit Agreement shall remain in full force and
effect until such time as the Investor no longer owns any Series E Preferred Stock. In addition,
during the Relevant Period, except as otherwise agreed, the Company shall provide the Investor a
bi-annual report on the steps taken by the Company to comply in all respects with Section 111 of
the EESA, including the provisions for Systemically Significant Failing Institutions, as
implemented by any guidance or regulation issued thereunder as of the date of such report,
including Notice 2008-PSSFI, any amendments to Notice 2008-PSSFI, or any other guidance or
regulation applicable to the Company, and with Section 4.9 of this Agreement. In addition, the
Company shall promptly provide the Investor such other information and notices as the Investor may
reasonably request from time to time.

     (b) The Investor will use reasonable best efforts to hold, and will use reasonable best
efforts to cause its agents, consultants, contractors and advisors to hold, in confidence all
non-public records, books, contracts, instruments, computer data and other data and information
(collectively, “Information”) concerning the Company furnished or made available to it by the
Company or its representatives pursuant to this Agreement (including pursuant to Sections 3.5 and
3.6) (except to the extent that such information can be shown to have been (i) previously known by
such party on a non-confidential basis, (ii) in the public domain through no fault of such party or
(iii) later lawfully acquired from other sources by the party to which it was furnished (and
without violation of any other confidentiality obligation)); provided that nothing herein shall
prevent the Investor from disclosing any Information to the extent required by applicable laws or
regulations or by any subpoena or similar legal process.

     3.6 Additional Inspection Rights. During the Relevant Period, the Company shall permit (i)
the Investor and its agents, consultants, contractors and advisors, (ii) the Special Inspector
General of the Troubled Asset Relief Program, and (iii) the Comptroller General of the

10

 

United States access to personnel and any books, papers, records or other data delivered to it
pursuant to this Agreement or otherwise in its possession, custody or control, in each case to the
extent relevant to ascertaining compliance with the terms and conditions set forth in this
Agreement, during normal business hours and upon reasonable notice to the Company; provided that
prior to disclosing any information pursuant to clause (i), (ii) or (iii), the Investor, the
Special Inspector General of the Troubled Asset Relief Program and the Comptroller General of the
United States shall have agreed, with respect to documents obtained under this Agreement in
furtherance of their respective functions, to follow applicable laws and regulations (and the
applicable customary policies and procedures, including those for inspectors general) regarding the
dissemination of confidential materials, including redacting confidential information from the
public version of its reports, as appropriate, and soliciting input from the Company as to
information that should be afforded confidentiality. The Investor represents that it has been
informed by the Special Inspector General of the Troubled Asset Relief Program and the Comptroller
General of the United States that they, before making any request for access or information
pursuant to their oversight and audit functions, will establish a protocol to avoid, to the extent
reasonably possible, duplicative requests. Nothing in this Section 3.6 shall be construed to limit
the authority that the Special Inspector General of the Troubled Asset Relief Program or the
Comptroller General of the United States have under law.

     3.7 Exchange of Warrant. (a) If, at the meeting of the Company’s shareholders referred to in
Section 6.2(a) of the Series C Perpetual, Convertible, Participating Preferred Stock Purchase
Agreement, dated as of March 1, 2009 (the “Series C Preferred Stock Purchase Agreement”), between
the Company and the AIG Credit Facility Trust, a trust established for the sole benefit of the
United States Treasury (the “Trust”), the Common Stock Amendment Proposal (as defined in the
Series C Preferred Stock Purchase Agreement) is not approved by the holders of Company’s capital
stock but the Series C Preferred Stock Amendment Proposal and the Serial Preferred Stock Amendment
Proposal (each as defined in the Series C Preferred Stock Purchase Agreement) are so approved, the
Investor shall have the right, at any time and in its sole discretion, by giving a notice in
accordance with Section 5.6 to exchange the warrant issued to the Investor on November 25, 2008
(the “Warrant”) for 53,798,766 shares of the Company’s Series C Preferred Stock (after giving
effect to the Series C Preferred Stock Amendment Proposal and the Serial Preferred Stock Amendment
Proposal referred to above and subject to adjustment for any stock splits and reverse stock splits
effected between the Closing Date and the date on which such exchange is effected) (the “Warrant
Exchange” and the shares of Series C Preferred Stock received in such exchange, the “Exchange
Shares”). In order to effect the Warrant Exchange, the Company shall comply with the relevant
provisions of Sections 6.1 and 6.2 of the Series C Preferred Stock Purchase Agreement as if such
sections were set forth in full in this Agreement, except that the Series C Preferred Stock
Amendment Proposal (as defined in the Series C Preferred Stock Purchase Agreement) shall be deemed
to include an amendment to the Certificate of Designations for the Company’s Series C Preferred
Stock to authorize the issuance of the Exchange Shares.

     (b) The Company acknowledges that the Investor has provided consideration for the Warrant
Exchange in the form of its agreement to consummate the Exchange and that the value of such
agreement is at least equal to the par value of the Exchange Shares.

11

 

     3.8 Exchange of Series E Preferred Stock. As soon as practicable following the filing of the
Certificate of Elimination with the Secretary of State of Delaware, the Company shall reserve for
issuance 4,160,458 authorized and unissued shares of Serial Preferred Stock and at any time prior
to the date the Investor ceases to own any shares of Series E Preferred Stock, the Investor shall
have the right, in its sole discretion, by giving a notice in accordance with Section 5.6 to cause
the Company to take all action necessary under all applicable laws and regulations and the Charter
to exchange any of the shares of Series E Preferred Stock owned by the Investor for a new series of
Serial Preferred Stock with the same terms as the Series E Preferred Stock (except that the
liquidation preference of such new series shall be $10,000 per share, or such liquidation
preference per share as shall be reasonably specified by the Investor and the aggregate liquidation
preference following such exchange shall be equal to the aggregate liquidation preference of the
Series E Preferred Stock prior to such exchange), in accordance with an exchange agreement
substantially in the form of this Agreement.

     3.9 Compliance with the Employ American Workers Act. The Company shall, and the Company shall
take all necessary action to ensure that the Company Subsidiaries, as applicable, shall, comply in
all respects with the provisions of the Employ American Workers Act (Section 1611 of Division A,
Title XVI of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5)), as in effect from
time to time.

     3.10 Compliance with Guidelines of the Home Affordable Modification Program. The Company
shall take all necessary action to ensure that all Company Subsidiaries that are eligible for the
Home Affordable Modification Program shall execute a Commitment to Purchase Financial Instrument
and Servicer Participation Agreement with the Federal National Mortgage Association within 90 days
of the Commencement Date and otherwise comply with (i) the Home Affordable Modification Program
Guidelines issued by the Investor on March 4, 2009, (ii) Supplemental Directive 09-01 issued by the
Investor dated April 6, 2009 and (iii) any other guidelines or regulations to be issued by the
Investor as part of the Home Affordable Modification Program.

     3.11 Internal Controls. The Company shall (i) promptly establish appropriate internal
controls with respect to compliance with each of the Company’s covenants and agreements set forth
in Sections 4.7 through 4.12; (ii) prepare a report on a quarterly basis regarding the
implementation of such internal controls and the Company’s compliance (including any instances of
non-compliance) with such covenants and agreements; (iii) deliver such quarterly report to the
Investor in accordance with Section 5.6 and no later than the date by which its Quarterly Report on
Form 10-Q or Annual Report on Form 10-K is filed with the SEC; and (iv) provide a signed
certification from a senior executive officer of the Company to the Investor that such quarterly
report is accurate to the best of his or her knowledge, which certification shall be made subject
to the requirements and penalties set forth in Title 18, United States Code, Section 1001.

12

 

Article 4

Additional Agreements

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

     4.2 Legends.

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

“THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY OR THE SHARES OF COMMON STOCK ISSUABLE
UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN 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,
REGISTRATION.”

     (b) The Investor agrees that all certificates or other instruments representing the Series E
Preferred Stock will bear a legend substantially to the following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR SUCH LAWS. EACH
PURCHASER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY
BE RELYING ON THE EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER. ANY TRANSFEREE OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT BY ITS
ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT), (2) AGREES THAT

13

 

IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY THIS INSTRUMENT
EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES
ACT, (B) FOR SO LONG AS THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO THE ISSUER OR (D) PURSUANT
TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS
INSTRUMENT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.”

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

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

     4.4 Transfer of Series E Preferred Stock and Exchange Shares. Subject to compliance with
applicable securities laws, the Investor shall be permitted to transfer, sell, assign or otherwise
dispose of (“Transfer”) all or a portion of the Series E Preferred Stock or the Exchange Shares at
any time, and the Company shall take all steps as may be reasonably requested by the Investor to
facilitate the Transfer of the Series E Preferred Stock or the Exchange Shares.

     4.5 Registration Rights.

     (a) Registration.

     (i) Subject to the terms and conditions of this Agreement, the Company covenants and
agrees that as promptly as practicable after notification from the Investor, and in any
event no later than 15 days after such notification, the Company shall prepare

14

 

and file with the SEC a Shelf Registration Statement covering all Registrable
Securities (or otherwise designate an existing Shelf Registration Statement filed with the
SEC to cover the Registrable Securities), and, to the extent the Shelf Registration
Statement has not theretofore been declared effective or is not automatically effective upon
such filing, the Company shall use reasonable best efforts to cause such Shelf Registration
Statement to be declared or become effective and to keep such Shelf Registration Statement
continuously effective and in compliance with the Securities Act and usable for resale of
such Registrable Securities for a period from the date of its initial effectiveness until
such time as there are no Registrable Securities remaining (including by refiling such Shelf
Registration Statement (or a new Shelf Registration Statement) if the initial Shelf
Registration Statement expires). So long as the Company is a well-known seasoned issuer (as
defined in Rule 405 under the Securities Act) at the time of filing of the Shelf
Registration Statement with the SEC, such Shelf Registration Statement shall be designated
by the Company as an automatic Shelf Registration Statement.

     (ii) Any registration pursuant to Section 4.5(a)(i) shall be effected by means of a
shelf registration on an appropriate form under Rule 415 under the Securities Act (a “Shelf
Registration Statement”). If the Investor or any other Holder intends to distribute any
Registrable Securities by means of an underwritten offering it shall promptly so advise the
Company and the Company shall take all reasonable steps to facilitate such distribution,
including the actions required pursuant to Section 4.5(c); provided that the Company shall
not be required to facilitate an underwritten offering of Registrable Securities unless the
expected gross proceeds from such offering exceed $200 million. The lead underwriters in
any such distribution shall be selected by the Holders of a majority of the Registrable
Securities to be distributed.

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

     (iv) If during any period when an effective Shelf Registration Statement is not
available, the Company proposes to register any of its equity securities, other than a
registration pursuant to Section 4.5(a)(i) or a Special Registration, and the registration
form to be filed may be used for the registration or qualification for distribution of
Registrable Securities, the Company will give prompt written notice to the Investor and

15

 

all other Holders of its intention to effect such a registration (but in no event less
than ten days prior to the anticipated filing date) and will include in such registration
all Registrable Securities with respect to which the Company has received written requests
for inclusion therein within ten business days after the date of the Company’s notice (a
“Piggyback Registration”). Any such person that has made such a written request may
withdraw its Registrable Securities from such Piggyback Registration by giving written
notice to the Company and the managing underwriter, if any, on or before the fifth business
day prior to the planned effective date of such Piggyback Registration. The Company may
terminate or withdraw any registration under this Section 4.5(a)(iv) prior to the
effectiveness of such registration, whether or not the Investor or any other Holders have
elected to include Registrable Securities in such registration.

     (v) If the registration referred to in Section 4.5(a)(iv) is proposed to be
underwritten, the Company will so advise the Investor and all other Holders as a part of the
written notice given pursuant to Section 4.5(a)(iv). In such event, the right of the
Investor and all other Holders to registration pursuant to Section 4.5(a) will be
conditioned upon such persons’ participation in such underwriting and the inclusion of such
person’s Registrable Securities in the underwriting if such securities are of the same class
of securities as the securities to be offered in the underwritten offering, and each such
person will (together with the Company and the other persons distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company; provided that the
Investor (as opposed to other Holders) shall not be required to indemnify any person in
connection with any registration. If any participating person disapproves of the terms of
the underwriting, such person may elect to withdraw therefrom by written notice to the
Company, the managing underwriters and the Investor (if the Investor is participating in the
underwriting).

     (vi) If either (x) the Company grants “piggyback” registration rights to one or more
third parties to include their securities in an underwritten offering under a Shelf
Registration Statement pursuant to Section 4.5(a)(ii) or (y) a Piggyback Registration under
Section 4.5(a)(iv) relates to an underwritten offering on behalf of the Company, and in
either case the managing underwriters advise the Company that in their reasonable opinion
the number of securities requested to be included in such offering exceeds the number which
can be sold without adversely affecting the marketability of such offering (including an
adverse effect on the per share offering price), the Company will include in such offering
only such number of securities that in the reasonable opinion of such managing underwriters
can be sold without adversely affecting the marketability of the offering (including an
adverse effect on the per share offering price), which securities will be so included in the
following order of priority: (A) first, in the case of a Piggyback Registration under
Section 4.5(a)(iv), the securities the Company proposes to sell, (B) then the Registrable
Securities of the Investor and all other Holders who have requested inclusion of Registrable
Securities pursuant to Section 4.5(a)(ii) or Section 4.5(a)(iv), as applicable, pro rata on
the basis of the aggregate number of such securities or shares owned by each such person,
(C) then the Registrable Securities (as defined in

16

 

the Series C Preferred Stock Purchase Agreement) of the Trust and all other Holders who
have received Registrable Securities (as defined in the Series C Preferred Stock Purchase
Agreement) from the Trust and who have requested inclusion of Registrable Securities (as
defined in the Series C Preferred Stock Purchase Agreement) in accordance with the terms of
the Series C Preferred Stock Purchase Agreement, pro rata on the basis of the aggregate
number of such securities or shares owned by each such person and (D) lastly, any other
securities of the Company that have been requested to be so included, subject to the terms
of this Agreement.

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

     (c) Obligations of the Company. The Company shall use its reasonable best efforts,
for so long as there are Registrable Securities outstanding, to take such actions as are in its
control to become a well-known seasoned issuer (as defined in Rule 405 under the Securities Act)
and once the Company becomes a well-known seasoned issuer to take such actions as are in its
control to remain a well-known seasoned issuer. In addition, whenever required to effect the
registration of any Registrable Securities or facilitate the distribution of Registrable Securities
pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as
reasonably practicable:

     (i) Prepare and file with the SEC, not later than fifteen (15) days after the request,
a registration statement with respect to such Registrable Securities and use all
commercially reasonable efforts to cause such registration statement to become effective, or
prepare and file with the SEC not later than ten (10) days after the request a prospectus
supplement with respect to a proposed offering of such Registrable Securities pursuant to an
effective registration statement, subject to Section 4.5(d), and, upon the request of the
Holders of a majority of the Registrable Securities registered thereunder, use all
commercially reasonable efforts to keep such registration statement effective and keep such
prospectus supplement current until the securities described therein are no longer
Registrable Securities.

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

     (iii) Furnish to the Holders and any underwriters such number of copies of the
applicable registration statement and each such amendment and supplement thereto (including
in each case all exhibits) and of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Securities Act, and such other

17

 

documents as they may reasonably request in order to facilitate the disposition of
Registrable Securities owned or to be distributed by them.

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

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

     (vi) Give written notice to the Holders:

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

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

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

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

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

18

 

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

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

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

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

     (x) If an underwritten offering is requested pursuant to Section 4.5(a)(ii), enter into
an underwriting agreement in customary form, scope and substance and take all such other
actions reasonably requested by the Holders of a majority of the Registrable Securities
being sold in connection therewith or by the managing underwriter(s), if any, to expedite or
facilitate the underwritten disposition of such Registrable Securities, and in connection
therewith in any underwritten offering (including making members of management and
executives of the Company available to participate in “road shows”, similar sales events and
other marketing activities), (A) make such representations and warranties to the Holders
that are selling stockholders and the managing underwriter(s), if any, with respect to the
business of the Company and its subsidiaries, and the Shelf Registration Statement,
prospectus and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, in customary form, substance and scope, and, if true, confirm the
same if and when requested, (B) use its reasonable best efforts to furnish the underwriters
with opinions of counsel to the Company, addressed to the managing underwriter(s), if any,
covering the matters customarily covered in such opinions requested in underwritten
offerings, (C) use its reasonable best efforts to obtain “cold comfort” letters from the
independent certified public accountants of the Company (and, if necessary, any other
independent certified public accountants of any business

19

 

acquired by the Company for which financial statements and financial data are included
in the Shelf Registration Statement) who have certified the financial statements included in
such Shelf Registration Statement, addressed to each of the managing underwriter(s), if any,
such letters to be in customary form and covering matters of the type customarily covered in
“cold comfort” letters, (D) if an underwriting agreement is entered into, the same shall
contain indemnification provisions and procedures customary in underwritten offerings
(provided that the Investor shall not be obligated to provide any indemnity), and (E)
deliver such documents and certificates as may be reasonably requested by the Holders of a
majority of the Registrable Securities being sold in connection therewith, their counsel and
the managing underwriter(s), if any, to evidence the continued validity of the
representations and warranties made pursuant to clause (A) above and to evidence compliance
with any customary conditions contained in the underwriting agreement or other agreement
entered into by the Company.

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

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

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

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

20

 

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

     (e) Termination of Registration Rights. A Holder’s registration rights as to any
securities held by such Holder (and its Affiliates, partners, members and former members) shall not
be available unless such securities are Registrable Securities.

     (f) Furnishing Information.

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

     (ii) It shall be a condition precedent to the obligations of the Company to take any
action pursuant to Section 4.5(c) that the Investor and/or the selling Holders and the
underwriters, if any, shall furnish to the Company such information regarding themselves,
the Registrable Securities held by them and the intended method of disposition of such
securities as shall be required to effect the registered offering of their Registrable
Securities.

     (g) Indemnification.

     (i) The Company agrees to indemnify each Holder and, if a Holder is a person other than
an individual, such Holder’s officers, directors, employees, agents, representatives and
Affiliates, and each Person, if any, that controls a Holder within the meaning of the
Securities Act (each, an “Indemnitee”), against any and all losses, claims, damages,
actions, liabilities, costs and expenses (including reasonable fees, expenses and
disbursements of attorneys and other professionals incurred in connection with
investigating, defending, settling, compromising or paying any such losses, claims, damages,
actions, liabilities, costs and expenses), joint or several, arising out of or based upon
any untrue statement or alleged untrue statement of material fact contained in any
registration statement, including any preliminary prospectus or final prospectus contained

21

 

therein or any amendments or supplements thereto or any documents incorporated therein
by reference or contained in any free writing prospectus (as such term is defined in Rule
405) prepared by the Company or authorized by it in writing for use by such Holder (or any
amendment or supplement thereto); or any omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided that the Company shall
not be liable to such Indemnitee in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense arises out of or
is based upon (A) an untrue statement or omission made in such registration statement,
including any such preliminary prospectus or final prospectus contained therein or any such
amendments or supplements thereto or contained in any free writing prospectus (as such term
is defined in Rule 405) prepared by the Company or authorized by it in writing for use by
such Holder (or any amendment or supplement thereto), in reliance upon and in conformity
with information regarding such Indemnitee or its plan of distribution or ownership
interests which was furnished in writing to the Company by such Indemnitee for use in
connection with such registration statement, including any such preliminary prospectus or
final prospectus contained therein or any such amendments or supplements thereto, or
(B) offers or sales effected by or on behalf of such Indemnitee “by means of” (as defined in
Rule 159A) a “free writing prospectus” (as defined in Rule 405) that was not authorized in
writing by the Company.

     (ii) If the indemnification provided for in Section 4.5(g)(i) is unavailable to an
Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or
expenses referred to therein or is insufficient to hold the Indemnitee harmless as
contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall
contribute to the amount paid or payable by such Indemnitee as a result of such losses,
claims, damages, actions, liabilities, costs or expenses in such proportion as is
appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the
Company, on the other hand, in connection with the statements or omissions which resulted in
such losses, claims, damages, actions, liabilities, costs or expenses as well as any other
relevant equitable considerations. The relative fault of the Company, on the one hand, and
of the Indemnitee, on the other hand, shall be determined by reference to, among other
factors, whether the untrue statement of a material fact or omission to state a material
fact relates to information supplied by the Company or by the Indemnitee and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 4.5(g)(ii) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 4.5(g)(i). No Indemnitee guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from the Company if the Company was not also guilty of such
fraudulent misrepresentation.

     (h) Assignment of Registration Rights. The rights of the Investor to registration of
Registrable Securities pursuant to Section 4.5(a) may be assigned by the Investor to a transferee

22

 

or assignee of Registrable Securities with a liquidation preference or, in the case of
Registrable Securities other than Series E Preferred Stock, a market value, no less than an amount
equal to $200 million; provided, however, the transferor shall, within ten days after such
transfer, furnish to the Company written notice of the name and address of such transferee or
assignee and the number and type of Registrable Securities that are being assigned. For purposes
of this Section 4.5(h), “market value” per share of Common Stock shall be the last reported sale
price of the Common Stock on the national securities exchange on which the Common Stock is listed
or admitted to trading on the last trading day prior to the proposed transfer and “market value” of
the Exchange Shares shall be the market value of a number of shares of Common Stock issuable upon
conversion of such Exchange Shares (whether or not such Exchange Shares are then convertible).

     (i) Clear Market. With respect to any underwritten offering of Registrable Securities
by the Investor or other Holders pursuant to this Section 4.5, the Company agrees not to effect
(other than pursuant to such registration or pursuant to a Special Registration) any public sale or
distribution, or to file any Shelf Registration Statement (other than such registration or a
Special Registration) covering, in the case of an underwritten offering of Common Stock, any of its
equity securities or, in the case of an underwritten offering of Series E Preferred Stock, any
preferred stock of the Company, or, in each case, any securities convertible into or exchangeable
or exercisable for such securities, during the period not to exceed 10 days prior and 60 days
following the effective date of such offering or such longer period up to 90 days as may be
requested by the managing underwriter for such underwritten offering. The Company also agrees to
cause such of its directors and senior executive officers to execute and deliver customary lock-up
agreements in such form and for such time period up to 90 days as may be requested by the managing
underwriter. “Special Registration” means the registration of (A) equity securities and/or options
or other rights in respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or
(B) shares of equity securities and/or options or other rights in respect thereof to be offered to
directors, members of management, employees, consultants, customers, lenders or vendors of the
Company or Company Subsidiaries or in connection with dividend reinvestment plans.

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

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

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

23

 

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

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

     (k) As used in this Section 4.5, the following terms shall have the following respective
meanings:

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

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

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

     (iv) “Registrable Securities” means (A) all Series E Preferred Stock and all Exchange
Shares and (B) any equity securities issued or issuable directly or indirectly with respect
to the securities referred to in the foregoing clause (A) by way of conversion, exercise or
exchange thereof dividend or share split or in connection with a combination of shares,
recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or
other reorganization; provided that, once issued, such securities will not be Registrable
Securities when (1) they are sold pursuant to an effective registration statement under the
Securities Act, (2) except as provided below in Section 4.5(o), they may be sold pursuant to
Rule 144 without limitation thereunder on volume or manner of sale, (3) they shall have
ceased to be outstanding or (4) they have been sold in a private transaction in which the
transferor’s rights under this Agreement are not assigned to the transferee of the
securities. No Registrable Securities may be registered under more than one registration
statement at any one time.

     (v) “Registration Expenses” mean all expenses incurred by the Company in effecting any
registration pursuant to this Agreement (whether or not any registration or prospectus
becomes effective or final) or otherwise complying with its obligations under

24

 

this Section 4.5, including all registration, filing and listing fees, printing
expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses,
expenses incurred in connection with any “road show”, the reasonable fees and disbursements
of Holders’ Counsel, and expenses of the Company’s independent accountants in connection
with any regular or special reviews or audits incident to or required by any such
registration, but shall not include Selling Expenses.

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

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

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

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

     (n) No Inconsistent Agreements. The Company shall not, on or after the Signing Date,
enter into any agreement with respect to its securities that may impair the rights granted to the
Investor and the Holders under this Section 4.5 or that otherwise conflicts with the provisions
hereof in any manner that may impair the rights granted to the Investor and the Holders under this
Section 4.5. In the event the Company has, prior to the Signing Date, entered into any agreement
with respect to its securities that is inconsistent with the rights granted to the Investor and the
Holders under this Section 4.5 (including agreements that are inconsistent with the order of
priority contemplated by Section 4.5(a)(vi)) or that may otherwise conflict with the provisions

25

 

hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure
they are consistent with the provisions of this Section 4.5.

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

     4.6 Depositary Shares. Upon request by the Investor in connection with a proposed transfer of
the Series E Preferred Stock, the Company shall promptly enter into a depositary arrangement,
pursuant to customary agreements reasonably satisfactory to the Investor and with a depositary
reasonably acceptable to the Investor, pursuant to which the Series E Preferred Stock may be
deposited and depositary shares, each representing a fraction of a Series E Preferred Stock as
specified by the Investor, may be issued. From and after the execution of any such depositary
arrangement, and the deposit of any Series E Preferred Stock pursuant thereto, the depositary
shares issued pursuant thereto shall be deemed “Series E Preferred Stock” and, as applicable,
“Registrable Securities” for purposes of this Agreement.

     4.7 Restriction on Dividends and Repurchases.

     (a) Notwithstanding any contrary provision of Section 4.8 of the Securities Purchase Agreement
dated as of November 25, 2008 between the Company and the Investor, as amended (the “Series D
Preferred Stock Purchase Agreement”), prior to the earlier of (x) the fifth anniversary of the
Closing Date and (y) the date on which the Series E Preferred Stock has been redeemed in whole or
the Investor has transferred all of the Series E Preferred Stock to third parties which are not
Affiliates of the Investor, neither the Company nor any Company Subsidiary shall, without the
consent of the Investor:

     (i) declare or pay any dividend or make any distribution on the Common Stock (other
than (A) dividends payable solely in shares of Common Stock and (B) dividends or
distributions of rights or Junior Stock in connection with a stockholders’ rights plan); or

     (ii) redeem, purchase or acquire any shares of Common Stock or other capital stock or
other equity securities of any kind of the Company, or any trust preferred securities issued
by the Company or any Affiliate of the Company, other than (A) redemptions, purchases or
other acquisitions of any such securities held by the Investor, (B) redemptions, purchases
or other acquisitions of the Series E Preferred Stock, (C) purchases or other acquisitions
of Series C Preferred Stock from the Trust,

26

 

(D) redemptions, purchases or other acquisitions of shares of Common Stock or other
Junior Stock, in each case in this clause (D) in connection with the administration of any
employee benefit plan in the ordinary course of business (including purchases to offset the
Share Dilution Amount (as defined below) pursuant to a publicly announced repurchase plan)
and consistent with past practice; provided that any purchases to offset the Share Dilution
Amount shall in no event exceed the Share Dilution Amount, (E) any redemption or repurchase
of rights pursuant to any stockholders’ rights plan, (F) the acquisition by the Company or
any of the Company Subsidiaries of record ownership in Junior Stock or Parity Stock for the
beneficial ownership of any other persons (other than the Company or any other Company
Subsidiary), including as trustees or custodians (the “Permitted Repurchases”), (G) the
conversion of the Series C Preferred Stock into Common Stock and (H) the exchange or
conversion of Junior Stock (other than the Series C Preferred Stock) for or into other
Junior Stock or of Parity Stock or trust preferred securities for or into other Parity Stock
(with the same or lesser aggregate liquidation amount) or Junior Stock, in each case set
forth in this clause (H), solely to the extent required pursuant to binding contractual
agreements entered into prior to the Signing Date or any subsequent agreement for the
accelerated exercise, settlement or exchange thereof for Common Stock. “Share Dilution
Amount” means the increase in the number of diluted shares outstanding (determined in
accordance with GAAP, and as measured from the date of the Company’s most recently filed
financial statements of the Company and its consolidated subsidiaries prior to the Closing
Date) resulting from the grant, vesting or exercise of equity-based compensation to
employees and equitably adjusted for any stock split, stock dividend, reverse stock split,
reclassification or similar transaction.

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

     (c) “Junior Stock” means Common Stock, the Series C Preferred Stock (after the Company’s
stockholders approve the amendment described in Section 3.1(b) to the Charter to have the Series E
Preferred Stock rank senior to the Series C Preferred Stock) and any other class or series of stock
of the Company (i) initially issued to any person other than the Investor or (ii) initially issued
to the Investor and the terms of which expressly provide that it ranks junior to the Series E
Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding up
of the Company. “Parity Stock” means the Series C Preferred Stock (before the Company’s
stockholders approve the Charter amendment referred to in Section 3.1(b)) and any class or series
of stock of the Company the terms of which do not expressly provide that such class or series will
rank senior or junior to the Series E Preferred Stock as to dividend rights and/or as to rights on
liquidation, dissolution or winding up of the Company (in each case without regard to whether
dividends accrue cumulatively or non-cumulatively).

27

 

     4.8 Repurchase of Investor Securities.

     (a) Following the redemption in whole of the Series E Preferred Stock held by the Investor or
the Transfer by the Investor of all of the Series E Preferred Stock to one or more third parties
not affiliated with the Investor and so long as the Investor does not Control the Company, the
Company may repurchase, in whole or in part, at any time any other equity or debt securities of the
Company owned by the Investor and then held by the Investor, upon notice given as provided in
clause (b) below, at the Fair Market Value of the equity or debt security. For the avoidance of
doubt, while there is Board of Directors control (or the potential to gain Board of Directors
control as a result of existing contractual rights) by the Investor (or any affiliate of the
Investor), the Company may not exercise its rights under this Section 4.8.

     (b) Notice of every repurchase of equity securities of the Company held by the Investor shall
be given at the address and in the manner set forth for such party in Section 5.6. Each notice of
repurchase given to the Investor shall state: (i) the number and type of securities to be
repurchased, (ii) the Board of Directors’ determination of Fair Market Value of such securities and
(iii) the place or places where certificates representing such securities are to be surrendered for
payment of the repurchase price. The repurchase of the securities specified in the notice shall
occur as soon as practicable following the determination of the Fair Market Value of the
securities.

     (c) As used in this Section 4.8, the following terms shall have the following respective
meanings:

     (i) “Appraisal Procedure” means a procedure whereby two independent appraisers, one
chosen by the Company and one by the Investor, shall mutually agree upon the Fair Market
Value. Each party shall deliver a notice to the other appointing its appraiser within 10
days after the Appraisal Procedure is invoked. If within 30 days after appointment of the
two appraisers they are unable to agree upon the Fair Market Value, a third independent
appraiser shall be chosen within 10 days thereafter by the mutual consent of such first two
appraisers. The decision of the third appraiser so appointed and chosen shall be given
within 30 days after the selection of such third appraiser. If three appraisers shall be
appointed and the determination of one appraiser is disparate from the middle determination
by more than twice the amount by which the other determination is disparate from the middle
determination, then the determination of such appraiser shall be excluded, the remaining two
determinations shall be averaged and such average shall be binding and conclusive upon the
Company and the Investor; otherwise, the average of all three determinations shall be
binding upon the Company and the Investor. The costs of conducting any Appraisal Procedure
shall be borne by the Company.

     (ii) “Fair Market Value” means, with respect to any security, the fair market value of
such security as determined by the Board of Directors, acting in good faith in reliance on
an opinion of a nationally recognized independent investment banking firm retained by the
Company for this purpose and certified in a resolution to the Investor. If the Investor
does not agree with the Board of Directors’ determination, it may object in

28

 

writing within 10 days of receipt of the Board of Directors’ determination. In the
event of such an objection, an authorized representative of the Investor and the chief
executive officer of the Company shall promptly meet to resolve the objection and to agree
upon the Fair Market Value. If the chief executive officer and the authorized
representative are unable to agree on the Fair Market Value during the 10-day period
following the delivery of the Investor’s objection, the Appraisal Procedure may be invoked
by either party to determine the Fair Market Value by delivery of a written notification
thereof not later than the 30th day after delivery of the Investor’s objection.

     (iii) “Control” means the power to direct the management and policies of the Company,
directly or indirectly, whether through the ownership of voting securities, by contract, by
the power to control the Board of Directors or otherwise.

     4.9 Executive Compensation.

     (a) During the Relevant Period, the Company shall take all necessary action to ensure that its
Benefit Plans comply in all respects with Section 111 of the EESA, including the provisions for
Systemically Significant Failing Institutions, as implemented by any guidance or regulation
thereunder, including Notice 2008-PSSFI, any amendments to Notice 2008-PSSFI, or any other guidance
or regulations under Section 111 of the EESA, as the same shall be in effect from time to time
(“Compensation Regulations”), and shall not adopt any new Benefit Plan (i) that does not comply
therewith or (ii) that does not expressly state and require that such Benefit Plan and any
compensation thereunder shall be subject to any relevant Compensation Regulations adopted, issued
or released on or after the date any such Benefit Plan is adopted. To the extent that the
Compensation Regulations change during the Relevant Period in a manner that requires changes to
then-existing Benefit Plans, the Company shall effect such changes to its Benefit Plans as promptly
as practicable after it has actual knowledge of such changes in order to be in compliance with this
Section 4.9(a) (and shall be deemed to be in compliance for a reasonable period to effect such
changes).

     (b) (1) In addition to the requirements set forth in Section 4.9(a) above, the Company shall,
during the Relevant Period, take all necessary action to limit any “golden parachute payments” to
the employees of the Company and the Company Subsidiaries who participate in the Company’s Senior
Partners Plan (the “Senior Partners”) to the amounts permitted by the regulations relating to
participants in the EESA Capital Purchase Program and the guidelines and rules relating thereto,
including the rules set forth in 31 CFR Part 30, that have been issued and are in effect as of the
Closing Date, as if such Senior Partners were Senior Executive Officers for purposes of the EESA
(except that equity denominated awards settled solely in equity shall not be included in such limit
on “golden parachute payments” to Senior Partners). “Senior Executive Officers” means the
Company’s “senior executive officers” as defined in Section 111 of the EESA and regulations issued
or to be issued thereunder, including the rules set forth in 31 CFR Part 30 or any rules that
replace 31 CFR Part 30; provided that, solely for purposes of the foregoing sentence, “Senior
Executive Officers” shall mean the Company’s “senior executive officers” as defined in Section 111
of the EESA and regulations issued thereunder, including the rules set forth in 31 CFR Part 30 that
have been issued and are effective as of the Closing Date.

29

 

     (2) In addition to the requirements set forth in Section 4.9(a) above, in furtherance
of the Company’s commitment to limit golden parachute payments to certain Senior Partners as
set forth in Section 4.9(b)(1), and to ensure compliance with the provisions of the EESA
Capital Purchase Program and the guidelines and regulations relating thereto applicable to
certain Senior Partners pursuant to Section 4.9(b)(1), it is further agreed that the Company
shall take all necessary action to ensure that the sum of (A) a Senior Partner’s annual
bonus for 2009, (B) all retention payments paid or payable to such Senior Partner under any
retention arrangement between the Senior Partner and the Company for any period ending on or
prior to March 31, 2010 and (C) any and all amounts paid or payable to such Senior Partner
in connection with the termination of such Senior Partner’s employment prior to March 31,
2010 which would be taken into account in applying the compensation limitation under Section
4.9(b)(1) above, other than any payments pursuant to outstanding awards under the Company’s
Senior Partners Plan, shall not exceed 3.5 times the sum of such Senior Partner’s base
salary and target annual bonus for 2008. For this purpose, actual annual bonus for 2009 and
target annual bonus for 2008 will include supplemental bonus and quarterly cash payments
under the Company’s historic quarterly bonus program consistent with, and in amounts not
exceeding, past practice.

     (3) For the avoidance of doubt, (i) the limits of Sections 4.9(b)(1) and (2) are in
addition to any applicable requirements under provisions of the EESA prohibiting golden
parachute payments to the Senior Executive Officers and the relevant Compensation
Regulations, and (ii) to the extent that any Benefit Plan or any payment permissible under
Section 4.9(c) is inconsistent with any relevant Compensation Regulations, such Compensation
Regulations shall control.

          Notwithstanding the other provisions of this Section 4.9(b), the Company’s obligations
under this Section 4.9(b) shall be on a best efforts basis with respect to the Senior
Partners who are not U.S.-based to the extent of its existing Benefit Plans. In addition,
after the Closing Date in connection with the hiring or promotion of a Covered Employee
and/or the promulgation of applicable Compensation Regulations, to the extent any Covered
Employee shall not have executed a waiver with respect to the application to such Covered
Employee of the Compensation Regulations, the Company shall use its best efforts to (i)
obtain from such Covered Employee a waiver in a form satisfactory to the Investor and (ii)
deliver such waiver to the Investor as promptly as possible. “Covered Employee” means each
(i) Senior Executive Officer, (ii) Senior Partner and (iii) other employee of the Company or
its subsidiaries determined at any time to be subject to Section 111 of the EESA.

     (c) During the Relevant Period, the Company shall take all necessary action to ensure that the
annual bonus pools payable to the Senior Executive Officers and the Senior Partners in respect of
each of 2008 and 2009 shall not exceed the average of the annual bonus pools paid to the Senior
Executive Officers and the Senior Partners for 2006 and 2007 (in each case exclusive of the
Company’s historic quarterly bonus program including but not limited to supplemental

30

 

bonus and quarterly cash payments, the amount of which will not increase for any participant)
and subject to appropriate adjustment for new hires and departures.

     (d) [RESERVED].

     (e) The Company confirms that none of (i) the proceeds of the Purchase Price (as such term is
used and defined in the Series D Preferred Stock Purchase Agreement) or (ii) the funds provided to
the Company under the Credit Agreement (collectively, the “Funds”) were used nor shall they be used
to pay annual bonuses, or other future cash performance awards to executives of the Company or
Senior Partners. The parties desire that this confirmation be auditable and agree that there are a
number of appropriate methods for verifying this confirmation (particularly in light of expected
business changes at the Company). Until the date that any annual bonuses in respect of 2009 are
paid, it is agreed that the test for the foregoing will be that, at the time when any annual
bonuses or cash performance awards granted after the date of this Agreement are paid to executive
officers or Senior Partners, the Company will have received aggregate dividends, distributions and
other payments from its subsidiaries subsequent to September 16, 2008 greater than the aggregate
amount of such annual bonuses, such cash performance awards and amounts paid pursuant to the
Company’s historic quarterly bonus program (including but not limited to supplemental bonus and
quarterly cash payments, the amount of which will not increase for any participant) paid to
executive officers and Senior Partners subsequent to that date. At and after the date that any
annual bonuses in respect of 2009 are paid, the test for the foregoing confirmation will be that,
at the time when any annual bonuses or cash performance awards granted after the date of this
Agreement are vested or otherwise earned by executive officers or Senior Partners, the aggregate
adjusted net income for the relevant year (being the year in which or in respect of which such
bonuses or awards are vested or so earned) of the insurance company subsidiaries of the Company
included for such year in the consolidated financial statements of the Company, excluding any such
adjusted net income that was dividended or otherwise distributed to the Company and taken into
account in satisfying the test under the prior sentence, shall exceed the aggregate amount of such
annual bonuses, such cash performance awards and amounts pursuant to the Company’s historic
quarterly bonus program (including but not limited to supplemental bonus and quarterly cash
payments, the amount of which will not increase for any participant), in each case vested or
otherwise earned in or in respect of such year. Each party agrees to negotiate in good faith and
promptly at the request of the other to develop additional or alternative appropriate formulations
to test for this confirmation.

     (f) The Company confirms that none of the Funds have been nor shall be used to pay any
electively deferred compensation in respect of or otherwise resulting from the termination of the
deferred compensation plans by the Company or the Company subsidiaries as described in Item 5.02 of
the Company’s Current Report on Form 8-K dated November 18, 2008.

     (g) The parties agree that Sections 4.10(b) and (c) of the Series D Preferred Stock Purchase
Agreement shall remain in full force and effect in accordance with their terms during the period
that only the Warrant is outstanding and the Investor no longer owns any Series E Preferred Stock.

31

 

     4.10 Restrictions on Lobbying. Until such time as the Investor ceases to own any Series E
Preferred Stock, the Company shall continue to maintain and implement its comprehensive written
policy on lobbying, governmental ethics and political activity and distribute such policy to all
Company employees and lobbying firms involved in any such activity. Any material amendments to
such policy shall require the prior written consent of the Investor until the Investor no longer
owns any Series E Preferred Stock, and any material deviations from such policy, whether in
contravention thereof or pursuant to waivers provided for thereunder, shall promptly be reported to
the Investor. Such policy shall, at a minimum, (i) require compliance with all applicable law;
(ii) apply to the Company, the Company Subsidiaries and affiliated foundations; (iii) govern (a)
the provision of items of value to any government officials, (b) lobbying and (c) political
activities and contributions; and (iv) provide for (a) internal reporting and oversight and (b)
mechanisms for addressing non-compliance with the policy.

     4.11 Restrictions on Expenses. Until such time as the Investor ceases to own any Series E
Preferred Stock, the Company shall continue to maintain and implement its comprehensive written
policy on corporate expenses and distribute such policy to all Company employees by posting such
policy on the Company’s intranet and directing all Company employees via electronic mail to review
such policy as posted. Any material amendments to such policy shall require the prior written
consent of the Investor until such time as the Investor no longer owns any Series E Preferred
Stock, and any material deviations from such policy, whether in contravention thereof or pursuant
to waivers provided for thereunder, shall promptly be reported to the Investor. Such policy shall,
at a minimum: (i) require compliance with all applicable law; (ii) apply to the Company and the
Company Subsidiaries; (iii) govern (a) the hosting, sponsorship or other payment for conferences
and events, (b) the use of corporate aircraft, (c) travel accommodations and expenditures,
(d) consulting arrangements with outside service providers, (e) any new lease or acquisition of
real estate, (f) expenses relating to office or facility renovations or relocations and (g)
expenses relating to entertainment or holiday parties; and (iv) provide for (a) internal reporting
and oversight and (b) mechanisms for addressing non-compliance with the policy.

     4.12 Risk Management Committee. The Company has established and, during the Relevant Period,
will maintain a risk management committee of the Board of Directors that will oversee the major
risks involved in the Company’s business operations and review the Company’s actions to mitigate
and manage those risks.

     4.13 Dividend Rate Adjustment. The dividend rate on the Series E Preferred Stock beneficially
owned at the time by the Investor is subject to adjustment in the sole discretion of the Secretary
of the Department of the Treasury in light of, inter alia, then-prevailing economic conditions and
the financial condition of the Company, with the objective of protecting the U.S. taxpayer.

32

 

Article 5

Miscellaneous

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

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

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

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

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

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

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

     5.4 Waiver of Conditions. The conditions to each party’s obligation to consummate the
Exchange are for the sole benefit of such party and may be waived by such party in whole or in part
to the extent permitted by applicable law. No waiver will be effective unless it is in a

33

 

writing signed by a duly authorized officer of the waiving party that makes express reference
to the provision or provisions subject to such waiver.

     5.5 Governing Law: Submission to Jurisdiction, Etc. This Agreement, and the rights and
obligations of the parties hereunder, shall be governed by, and construed and interpreted in
accordance with, United States federal law and not the law of any State. To the extent that a
court looks to the laws of any State to determine or define the United States federal law, it is
the intention of the parties hereto that such court shall look only to the laws of the State of New
York without regard to the rules of conflicts of laws. Each of the parties hereto agrees (a) to
submit to the exclusive jurisdiction and venue of the United States District Court for the District
of Columbia and the United States Court of Federal Claims for any and all actions, suits or
proceedings arising out of or relating to this Agreement or the transactions contemplated hereby,
and (b) that notice may be served upon (i) the Company at the address and in the manner set forth
for notices to the Company in Section 5.6 and (ii) the Investor in accordance with federal law. To
the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives
trial by jury in any legal action or proceeding relating to this Agreement or the transactions
contemplated hereby.

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

     If to the Investor:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, DC 20220

Attention: Chief Counsel, Office of Financial Stability

Telecopy: (202) 927-9225

Email: ofschiefcounselnotices@do.treas.gov

          TARP.Compliance@do.treas.gov

     If to the Company:

American International Group, Inc.

70 Pine Street, New York, New York 10270

Attention: General Counsel

Facsimile: (212) 785-2175

Telephone: (212) 770-7000

34

 

with a copy to:

Sullivan & Cromwell LLP

125 Broad Street, New York, New York 10004

Attention: Robert W. Reeder III, Michael M. Wiseman

Telephone: (212) 558-4000

     5.7 Definitions.

     (a) When a reference is made in this Agreement to a subsidiary of a person, the term
“subsidiary” means any corporation, partnership, joint venture, limited liability company or other
entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which
a majority of the voting securities or other voting interests, or a majority of the securities or
other interests of which having by their terms ordinary voting power to elect a majority of the
board of directors or persons performing similar functions with respect to such entity, is directly
or indirectly owned by such person and/or one or more subsidiaries thereof; provided that no Fund
shall be a subsidiary for purposes of this Agreement.

     (b) The term “Fund” means any investment vehicle managed by the Company or an Affiliate of the
Company and created in the ordinary course of the Company’s asset management business for the
purpose of selling Equity Interests in such investment vehicle to third parties. “Equity
Interests” means shares of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity interests in any entity, and any
option, warrant or other right entitling the holder thereof to purchase or otherwise acquire any
such equity interest.

     (c) The term “Affiliate” means, with respect to any person, any person directly or indirectly
controlling, controlled by or under common control with, such other person. For purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”) when used with respect to any person, means the possession, directly or
indirectly, of the power to cause the direction of management and/or policies of such person,
whether through the ownership of voting securities by contract or otherwise.

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

     5.9 Severability. If any provision of this Agreement, or the application thereof to any
person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or

35

 

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

     5.10 Entire Agreement. This Agreement (including the Annexes and Schedules hereto)
constitutes the entire agreement, and supersedes all other prior agreements, understandings,
representations and warranties, both written and oral, between the parties, with respect to the
subject matter hereof.

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

     5.12 Survival of Series D Preferred Stock Purchase Agreement. Except for Sections 4.8, 4.10
(except to the extent provided in Section 4.9(g) herein) and 4.13 of the Series D Preferred Stock
Purchase Agreement, which sections shall no longer be applicable following the Exchange, the
remaining provisions of the Series D Preferred Stock Purchase Agreement shall remain in full force
and effect in accordance with their terms following the Exchange.

[Signature Page Follows]

36

 

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

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By:  	/s/  Anastasia D. Kelly	 
	 	 	Name:  	Anastasia D. Kelly	 
	 	 	Title:  	Vice Chairman	 
	 
	 	UNITED STATES DEPARTMENT OF THE TREASURY

 	 
	 	By:  	/s/  Neel Kashkari	 
	 	 	Name:  	Neel Kashkari	 
	 	 	Title:  	Interim Assistant Secretary

For Financial Stability	 
	 

     Date: April 17, 2009

37

 

SCHEDULE A

ADDITIONAL TERMS AND CONDITIONS

Company Information:

     Name of the Company:  American International Group, Inc.

     Corporate or other organizational form: Corporation

     Jurisdiction of Organization: Delaware

Terms of the Exchange:

     Series of Serial Preferred Stock Exchanged: Series D Fixed Rate Cumulative Perpetual
Preferred Stock for Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock (the “Series E
Preferred Stock”)

     Per Share Liquidation Preference of Series E Preferred Stock: $104,011.44

     Number of Shares of Series E Preferred Stock Received upon Exchange:  400,000

			
	     Dividend Payment Dates on the Series E Preferred Stock: February 1, May 1, August 1 and November 1

	 	 	 
	Closing:
	 	 
	 
	 	 
	Location of Closing:
	 	Sullivan & Cromwell LLP
	 
	 	125 Broad Street
	 
	 	New York, NY  10004
	 
	 	 
	Time of Closing:
	 	2:00 p.m., New York time
	 
	 	 
	Date of Closing:
	 	April 17, 2009

 

 

SCHEDULE B

CAPITALIZATION

Capitalization Date: April 15, 2009

Common Stock

Par value: $2.50 per share

Total Authorized:  5,000,000,000

Outstanding:  2,690,805,447

Subject to warrants, options, convertible securities, etc.:  Up to 154,738,080 shares are
reserved for issuance pursuant to the Purchase Contract Agreement between the Company and
The Bank of New York, as Purchase Contract Agent, dated as of May 16, 2008

Reserved for benefit plans and other issuances:  166,516,638 (as of April 15, 2009)

Remaining authorized but unissued:  2,309,194,553

Shares issued after Capitalization Date (other than pursuant to warrants, options,
convertible securities, etc. as set forth above):  0

Serial Preferred Stock

Par value:  $5.00 per share

Total Authorized:  6,000,000

Outstanding (by series):

- 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock,
par value $5.00 per share that is convertible into Common Stock1; and

 

			
	1	 	In accordance with Section 6.1 and Section 6.2 of the
Securities Purchase Agreement for the Series C Perpetual, Convertible,
Participating Preferred Stock the Company has agreed to amend, among other
things, (i) the Charter to reduce the par value of the Common Stock to
$0.000001 per share, and increase the number of authorized shares of Common
Stock to 19 billion, (ii) the Charter to reduce the par value of the Company’s
Serial Preferred Stock (as defined in the Charter) to $0.00004 per share and
increase the number of authorized shares of the Company’s Serial Preferred
Stock to 13 billion (the “Serial Preferred Stock Amendment Proposal”) and (iii)
the

(...continued)

 

 

		 	-  4,000,000 shares of the Series D Fixed Rate Cumulative Perpetual Preferred Stock
par value $5.00 and liquidation preference $10,000 per share.

Issued:  4,100,000

Reserved for Issuance:  0

Remaining authorized but unissued:  1,900,000

 

			
	 	 	(continued...)
	 	 	Certificate of Designations such that (1) the number of shares of Series C
Preferred Stock authorized and outstanding upon the effectiveness of the Serial
Preferred Stock Amendment Proposal shall be the Number of Underlying Shares (as
defined in the Certificate of Designations) as of the effective date of the
Serial Preferred Stock Amendment Proposal, (2) the Conversion Ratio (as defined
in the Certificate of Designations) as of any date shall equal the quotient
obtained by dividing (x) the Number of Outstanding Shares (as defined in the
Certificate of Designations) as of such date by (y) the Number of Outstanding
Shares as of the effective date of such amendment and (3) the liquidation
preference per share of the Series C Preferred Stock shall be $500,000 divided
by the Number of Underlying Shares as of the effective date of such amendment.

 

 

ANNEX A

FORM OF CERTIFICATE OF DESIGNATIONS 

(SEE ATTACHED)

 

CERTIFICATE OF DESIGNATIONS

OF

SERIES E FIXED RATE NON-CUMULATIVE PERPETUAL PREFERRED STOCK

OF

AMERICAN INTERNATIONAL GROUP, INC.

     American International Group, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the “Company”), hereby certifies that the
following resolution was adopted by the Board of Directors of the Company (the “Board of
Directors”) as required by Section 151 of the General Corporation Law of the State of Delaware
at a meeting duly held on April 17, 2009.

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors in
accordance with the provisions of the Restated Certificate of Incorporation, as amended, the Board
of Directors hereby creates a series of serial preferred stock, par value $5.00 per share, of the
Company, and hereby states the designation and number of shares, and fixes the voting and other
powers, and the relative rights and preferences, and the qualifications, limitations and
restrictions thereof, as follows:

Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock:

     Part 1. Designation and Number of Shares. There is hereby created out of the
authorized and unissued shares of serial preferred stock of the Company a series of preferred stock
designated as the “Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock” (the “Series E
Preferred Stock”). The authorized number of shares of the Series E Preferred Stock shall be
400,000. Such number of shares may be decreased by resolution of the Board of Directors, subject
to the terms and conditions hereof; provided that no decrease shall reduce the number of shares of
the Series E Preferred Stock to a number less than the number of shares then outstanding.

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

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

     (a) “Common Stock” means the common stock, par value $2.50 per share, of the
Company.

     (b) “Convertible Preferred Stock” means the Series C Perpetual, Convertible,
Participating Preferred Stock of the Company. The Convertible Preferred Stock shall be

 

 

Parity Stock; provided that the Convertible Preferred Stock shall be Junior Stock
following the effectiveness of an amendment to the Charter to allow the Series E Preferred
Stock and any other series of preferred stock of the Company subsequently issued to the
United States Department of the Treasury to rank senior to the Convertible Preferred Stock
as to dividend rights and/or rights upon the liquidation, dissolution and winding up of the
Company (the “Amendment”).

     (c) “Dividend Payment Date” means February 1, May 1, August 1 and November 1 of
each year.

     (d) “Junior Stock” means the Common Stock, the Convertible Preferred Stock
(following the Amendment) and any class or series of stock of the Company (i) initially
issued to any person other than the United States Department of the Treasury or (ii)
initially issued to the United States Department of the Treasury and the terms of which
expressly provide that it ranks junior to the Series E Preferred Stock as to dividend rights
and/or as to rights on liquidation, dissolution or winding up of the Company.

     (e) “Liquidation Amount” means $104,011.44 per share of the Series E Preferred
Stock.

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

     (g) “Signing Date” means April 17, 2009.

     Part 4. Certain Voting Matters. Whether the vote or consent of the holders of a
plurality, majority or other portion of the shares of the Series E Preferred Stock and any Voting
Parity Stock has been cast or given on any matter on which the holders of shares of the Series E
Preferred Stock and any Voting Parity Stock are entitled to vote or consent together as a class
shall be determined by the Company by reference to the specified liquidation amount of the shares
of the Series E Preferred Stock voted or with respect to which a consent has been received as if
the Company were liquidated on the record date for such vote or consent, if any, or, in the absence
of a record date, on the date for such vote or consent. For purposes of determining the voting
rights of the holders of the Series E Preferred Stock under Section 7 of the Standard Provisions
forming part of this Certificate of Designations, each holder will be entitled to one vote for each
$10,000 of liquidation preference to which such holder’s shares are entitled.

[Remainder of Page Intentionally Left Blank]

2

 

     IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be signed on
its behalf by its                                          and attested by its Secretary this 17th day of April,
2009.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	ATTEST:
	 	 
	 
	 	 
	 

Name:

	 	 
	Title: Secretary
	 	 

 

ANNEX A

STANDARD PROVISIONS

     Section 1. General Matters. Each share of the Series E Preferred Stock shall be
identical in all respects to every other share of the Series E Preferred Stock. The Series E
Preferred Stock shall be perpetual, subject to the provisions of Section 5 of these Standard
Provisions that form a part of the Certificate of Designations. The Series E Preferred Stock (a)
shall rank senior to the Junior Stock in respect of the right to receive dividends and the right to
receive payments out of the assets of the Company upon voluntary or involuntary liquidation,
dissolution or winding up of the Company and (b) shall be of equal rank with Parity Stock as to the
right to receive dividends and the right to receive payments out of the assets of the Company upon
voluntary or involuntary liquidation, dissolution or winding up of the Company.

     Section 2. Standard Definitions. As used herein with respect to the Series E
Preferred Stock:

     (a) “Applicable Dividend Rate” means 10% per annum.

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

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

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

     (e) “Certificate of Designations” means the Certificate of Designations or comparable
instrument relating to the Series E Preferred Stock, of which these Standard Provisions form a
part, as it may be amended from time to time.

     (f) “Charter” means the Company’s Restated Certificate of Incorporation, as amended.

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

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

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

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

     (k) “Preferred Stock” means any and all series of serial preferred stock of the
Company, including the Series E Preferred Stock.

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     (l) “Series D Preferred Stock” means the Series D Fixed Rate Cumulative Perpetual
Preferred Stock of the Company.

     (m) “Share Dilution Amount” has the meaning set forth in Section 3(b).

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

     (o) “Transfer Agent” has the meaning set forth in Section 13.

     (p) “Trust” means the AIG Credit Facility Trust.

     (q) “UST” means the United States Department of the Treasury.

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

     Section 3. Dividends.

     (a) Rate. Holders of the Series E Preferred Stock shall be entitled to receive, on
each share of the Series E Preferred Stock if, as and when declared by the Board of Directors or
any duly authorized committee of the Board of Directors, but only out of assets legally available
therefor, non-cumulative cash dividends with respect to each Dividend Period (as defined below) at
a rate per annum equal to the Applicable Dividend Rate on the Liquidation Amount per share of the
Series E Preferred Stock. Such dividends shall be payable quarterly in arrears, but only if, as
and when declared by the Board of Directors or any duly authorized committee of the Board of
Directors, on each Dividend Payment Date, commencing with the first such Dividend Payment Date to
occur at least 20 calendar days after the Original Issue Date. In the event that any Dividend
Payment Date would otherwise fall on a day that is not a Business Day, the dividend payment due on
that date will be postponed to the next day that is a Business Day and no additional dividends
shall be payable nor shall interest accrue on the amount payable as a result of that postponement.
The period from and including any Dividend Payment Date to, but excluding, the next Dividend
Payment Date is a “Dividend Period”; provided that the initial Dividend Period shall be the
period from and including the Original Issue Date to, but excluding, the next Dividend Payment
Date.

     Dividends that are payable on Series E Preferred Stock in respect of any Dividend Period shall
be computed on the basis of a 360-day year consisting of twelve 30-day months. The amount of
dividends payable on Series E Preferred Stock on any date prior to the end of a Dividend Period,
and for the initial Dividend Period, shall be computed on the basis of a 360-day year consisting of
twelve 30-day months, and actual days elapsed over a 30-day month.

     Dividends that are payable on Series E Preferred Stock on any Dividend Payment Date will be
payable to holders of record of the Series E Preferred Stock as they appear on the stock

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register of the Company on the applicable record date, which shall be the 15th calendar day
immediately preceding such Dividend Payment Date or such other record date fixed by the Board of
Directors or any duly authorized committee of the Board of Directors that is not more than 60 nor
less than 10 days prior to such Dividend Payment Date (each, a “Dividend Record Date”). Any
such day that is a Dividend Record Date shall be a Dividend Record Date whether or not such day is
a Business Day.

     Dividends on the Series E Preferred Stock shall not be cumulative. Holders of Series E
Preferred Stock shall not be entitled to receive any dividends not declared by the Board of
Directors or any duly authorized committee of the Board of Directors, and no interest, or sum of
money in lieu of interest, shall be payable in respect of any dividend not so declared. If the
Board of Directors does not declare a dividend on the Series E Preferred Stock to be payable in
respect of any Dividend Period before the related Dividend Payment Date, such dividend will not
accrue and the Company will have no obligation to pay a dividend for that Dividend Period on the
Dividend Payment Date or at any future time, whether or not dividends on the Series E Preferred
Stock are declared for any future Dividend Period. Holders of the Series E Preferred Stock shall
not be entitled to any dividends, whether payable in cash, securities or other property, other than
dividends (if any) declared and payable on the Series E Preferred Stock as specified in this
Section 3 (subject to the other provisions of the Certificate of Designations).

     (b) Priority of Dividends. So long as any share of the Series E Preferred Stock
remains outstanding, no dividend or distribution shall be declared or paid on the Common Stock or
any other shares of Junior Stock (other than dividends payable solely in shares of Common Stock) or
Parity Stock, subject to the immediately following paragraph in the case of Parity Stock, and no
Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly, purchased, redeemed or
otherwise acquired for consideration by the Company or any of its subsidiaries unless dividends for
the latest completed Dividend Period on all outstanding shares of the Series E Preferred Stock have
been or are contemporaneously declared and paid in full (or have been declared and a sum sufficient
for the payment thereof has been set aside for the benefit of the holders of shares of the Series E
Preferred Stock on the applicable record date). The foregoing limitation shall not apply to (i) a
dividend payable on any Junior Stock in shares of any other Junior Stock, or to the acquisition of
shares of any Junior Stock in exchange for, or through application of the proceeds of the sale of,
shares of any other Junior Stock; (ii) redemptions, purchases or other acquisitions of shares of
Common Stock or other Junior Stock in connection with the administration of any employee benefit
plan in the ordinary course of business (including purchases to offset the Share Dilution Amount
(as defined below) pursuant to a publicly announced repurchase plan) and consistent with past
practice; provided that any purchases to offset the Share Dilution Amount shall in no event exceed
the Share Dilution Amount; (iii) any dividends or distributions of rights or Junior Stock in
connection with a stockholders’ rights plan or any redemption or repurchase of rights pursuant to
any stockholders’ rights plan; (iv) the acquisition by the Company or any of its subsidiaries of
record ownership in Junior Stock or Parity Stock for the beneficial ownership of any other persons
(other than the Company or any of its subsidiaries), including as trustees or custodians; (v) the
conversion of the Convertible Preferred Stock into Common Stock; (vi) the exchange or conversion of
Junior Stock (other than the Convertible Preferred Stock) for or into other Junior Stock or of
Parity Stock for or into other Parity Stock (with the same or lesser aggregate liquidation amount)
or

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Junior Stock, in each case, solely to the extent required pursuant to binding contractual
agreements entered into prior to the Signing Date or any subsequent agreement for the accelerated
exercise, settlement or exchange thereof for Common Stock; and (vii) any purchase, redemption or
other acquisition with the written consent of the UST. “Share Dilution Amount” means the
increase in the number of diluted shares outstanding (determined in accordance with generally
accepted accounting principles in the United States, and as measured from the date of the Company’s
consolidated financial statements most recently filed with the Securities and Exchange Commission
prior to the Original Issue Date) resulting from the grant, vesting or exercise of equity-based
compensation to employees and equitably adjusted for any stock split, stock dividend, reverse stock
split, reclassification or similar transaction.

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

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

     Section 4. Liquidation, Dissolution or Winding Up. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of the affairs of the Company, then, before any
distribution or payment shall be made to the holders of Junior Stock, the holders of the Series E
Preferred Stock and any shares of Preferred Stock ranking on a parity therewith as to liquidation
shall be entitled to be paid in full the respective amounts of the liquidation preferences thereof,
which in the case of the Series E Preferred Stock shall be $104,011.44 per share, plus an amount
equal to all dividends, if any, that have been declared but not paid prior to such distribution or
payment date (but without any accumulation in respect of dividends that have not been declared

A-4

 

prior to such distribution or payment date). If such payment shall have been made in full to
the holders of the Series E Preferred Stock and any series of Preferred Stock ranking on a parity
therewith as to liquidation, the remaining assets and funds of the Company shall be distributed
among the holders of Junior Stock, according to their respective rights and preferences and in each
case according to their respective shares. If, upon any liquidation, dissolution or winding up of
the affairs of the Company, the amounts so payable are not paid in full to the holders of all
outstanding shares of the Series E Preferred Stock and any series of Preferred Stock ranking on a
parity therewith as to liquidation, the holders of the Series E Preferred Stock and any series of
Preferred Stock ranking on a parity therewith as to liquidation shall share ratably in any
distribution of assets in proportion to the full amounts to which they would otherwise be
respectively entitled. Neither the consolidation or merger of the Company, nor the sale, lease or
conveyance of all or a part of its assets, shall be deemed a liquidation, dissolution or winding up
of the affairs of the Company within the meaning of the foregoing provisions of this Section 4.

     Section 5. Redemption.

     (a) Optional Redemption. Except as provided in this Section 5(a), the Series E
Preferred Stock shall not be redeemable. At any time that (i) the Trust (or any successor entity
established for the sole benefit of the United States Treasury) “beneficially owns” less than 30%
of the aggregate voting power of the Company’s voting securities and (ii) no holder of the Series E
Preferred Stock controls the Company, the Company may redeem, in whole or in part, at any time and
from time to time, out of funds legally available therefor, the shares of the Series E Preferred
Stock at the time outstanding, upon notice given as provided in Section 5(c) below, the Series E
Preferred Stock in whole or in part at a redemption price per share equal to 100% of its
Liquidation Amount, plus, for purposes of the redemption price only and except as set forth in the
last sentence of the next paragraph, an amount equal to all declared but unpaid dividends for the
then current Dividend Period to such redemption date (regardless of whether any dividends are
actually declared for that Dividend Period). “Control” for purposes of this Section 5(a)
means the power to direct the management and policies of the Company, directly or indirectly,
whether through the ownership of voting securities, by contract, by the power to control the Board
of Directors or otherwise. “Beneficially owns” for purposes of this Section 5(a) is defined
in Rule 13d-3 under the Securities Exchange Act of 1934, as amended to the Signing Date. For the
avoidance of doubt, while there is Board of Directors control (or the potential to gain Board of
Directors control as a result of existing contractual rights) by any holder of the Series E
Preferred Stock, the Company may not redeem any of the Series E Preferred Stock.

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

     (b) No Sinking Fund. The Series E Preferred Stock will not be subject to any mandatory
redemption, sinking fund or other similar provisions. Holders of the Series E

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Preferred Stock will have no right to require redemption or repurchase of any shares of the
Series E Preferred Stock.

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

     (d) Partial Redemption. In case of any redemption of part of the shares of the Series
E Preferred Stock at the time outstanding, the shares to be redeemed shall be selected either pro
rata or in such other manner as the Board of Directors or a duly authorized committee thereof may
determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors or a
duly authorized committee thereof shall have full power and authority to prescribe the terms and
conditions upon which shares of the Series E Preferred Stock shall be redeemed from time to time.
If fewer than all the shares represented by any certificate are redeemed, at the election of each
holder, either (i) a new certificate shall be issued representing the unredeemed shares without
charge to such holder thereof or (ii) upon surrender of a certificate representing any unredeemed
shares of Series E Preferred Stock, the Company shall deliver or cause to be delivered to such
holder a notice that shares of Series E Preferred Stock equal in number to the unredeemed shares of
Series E Preferred Stock represented by the certificate so surrendered have been registered on the
books and records of the Company.

     (e) Effectiveness of Redemption. If notice of redemption has been duly given and if on
or before the redemption date specified in the notice all funds necessary for the redemption have
been deposited by the Company, in trust for the pro rata benefit of the holders of the shares
called for redemption, with a bank or trust company doing business in the Borough of Manhattan, The
City of New York, and having a capital and surplus of at least $500 million and selected by the
Board of Directors, so as to be and continue to be available solely therefor, then, notwithstanding
that any certificate (if the shares of Series E Preferred Stock are not in book-entry form) for any
share so called for redemption has not been surrendered for cancellation, on and after the
redemption date dividends shall cease to accrue on all shares so called for

A-6

 

redemption, all shares so called for redemption shall no longer be deemed outstanding and all
rights with respect to such shares shall forthwith on such redemption date cease and terminate,
except only the right of the holders thereof to receive the amount payable on such redemption from
such bank or trust company, without interest. Any funds unclaimed at the end of three years from
the redemption date shall, to the extent permitted by law, be released to the Company, after which
time the holders of the shares so called for redemption shall look only to the Company for payment
of the redemption price of such shares.

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

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

     Section 7. Voting Rights.

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

     (b) Series E Preferred Stock Directors. Whenever, at any time or times, dividends
payable on the shares of the Series E Preferred Stock have not been paid for an aggregate of four
quarterly Dividend Periods or more, whether or not consecutive (including for this purpose the
period during which the Series D Preferred Stock was outstanding), the authorized number of
directors of the Company shall automatically be increased to accommodate the number of the
Preferred Directors specified below and the holders of the Series E Preferred Stock shall have the
right, with holders of shares of any one or more other classes or series of Voting Parity Stock
outstanding at the time, voting together as a class, to elect the greater of two directors and a
number of directors (rounded upward) equal to 20% of the total number of directors of the Company
after giving effect to such election (hereinafter the “Preferred Directors” and each a
“Preferred Director”) to fill such newly created directorships at the Company’s next annual
meeting of stockholders (or at a special meeting called for that purpose prior to such next annual
meeting) and at each subsequent annual meeting of stockholders until dividends payable on all
outstanding shares of the Series E Preferred Stock have been declared and paid in full for four
consecutive quarterly Dividend Periods, at which time such right shall terminate with respect to
the Series E Preferred Stock, except as herein or by law expressly provided, subject to revesting
in the event of each and every subsequent payment failure of the character above mentioned;
provided that it shall be a qualification for election for any Preferred Director that the election
of such Preferred Director shall not cause the Company to violate any corporate governance
requirements of any securities exchange or other trading facility on which securities of the
Company may then be listed or traded that listed or traded companies must have a majority of
independent directors. Upon any termination of the right of the holders of shares of the Series E
Preferred Stock and Voting Parity Stock as a class to vote for directors as provided above, the
Preferred Directors shall cease to be qualified as directors, the term of office of all Preferred
Directors then in office shall terminate immediately and the authorized number of directors shall

A-7

 

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

     (c) Class Voting Rights as to Particular Matters. So long as any shares of the Series
E Preferred Stock are outstanding, in addition to any other vote or consent of stockholders
required by law or by the Charter, the vote or consent of the holders of at least 66 2/3% of the
shares of the Series E Preferred Stock at the time outstanding, voting as a separate class, given
in person or by proxy, either in writing without a meeting or by vote at any meeting called for the
purpose, shall be necessary for effecting or validating:

     (i) Authorization of Senior or Pari Passu Stock. Any amendment or alteration
of the Certificate of Designations for the Series E Preferred Stock or the Charter
(including any amendment to the Charter effectuated by a Certificate of Designations) to
authorize or create or increase the authorized amount of, or any issuance of, any shares of,
or any securities convertible into or exchangeable or exercisable for shares of, any class
or series of capital stock of the Company ranking senior to or pari passu with the Series E
Preferred Stock with respect to either or both the payment of dividends and/or the
distribution of assets on any liquidation, dissolution or winding up of the Company (the
“Senior or Pari Passu Securities”); provided, however, that the voting rights
provided in this Section 7(c)(i) shall not apply to any amendment or alteration of the
Charter (including any amendment to the Charter effectuated by a Certificate of
Designations) to authorize or create or increase the authorized amount of, or any issuance
of, any Senior or Pari Passu Securities initially issued to the UST;

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

     (iii) Share Exchanges, Reclassifications, Mergers and Consolidations. Any
consummation of a binding share exchange or reclassification involving the Series E
Preferred Stock, or of a merger or consolidation of the Company with or into another
corporation or other entity, unless in each case (x) the shares of the Series E Preferred
Stock remain outstanding and are not amended in any respect or, in the case of any such
merger or consolidation with respect to which the Company is not the surviving or resulting
entity, are converted into or exchanged for preference securities of the surviving or
resulting entity or its ultimate parent, and (y) such shares remaining outstanding or such
preference securities, as the case may be, have such rights, preferences, privileges and
voting powers, and limitations and restrictions thereof, taken as a whole, as are not

A-8

 

materially less favorable to the holders thereof than the rights, preferences,
privileges and voting powers, and limitations and restrictions thereof, of the Series E
Preferred Stock immediately prior to such consummation, taken as a whole;

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

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

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

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

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

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     Section 10. No Preemptive Rights. No holder of the Series E Preferred Stock shall be
entitled as a matter of right to subscribe for or purchase, or have any preemptive right with
respect to, any part of any new or additional issue of stock of any class whatsoever, or of
securities convertible into any stock of any class whatsoever, whether now or hereafter authorized
and whether issued for cash or other consideration or by way of dividend.

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

     Section 12. Form.

     (a) The Series E Preferred Stock shall be initially issued in the form of one or more
certificates in definitive, fully registered form with, until such time as otherwise determined by
the Company, the restricted shares legend (the “Restricted Shares Legend”), as set forth on
the form of the Series E Preferred Stock attached hereto as Exhibit A (each, a “Series E
Preferred Share Certificate”), which is hereby incorporated in and expressly made a part of
this Certificate of Designations. The Series E Preferred Share Certificate may have notations,
legends or endorsements required by law, stock exchange rules, agreements to which the Company is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company).

     (b) An Officer shall sign the Series E Preferred Share Certificate for the Company, in
accordance with the Company’s Bylaws and applicable law, by manual or facsimile signature.
“Officer” means the Chairman, any Vice President, the Treasurer or the Secretary of the
Company.

     (c) If an Officer whose signature is on a Series E Preferred Share Certificate no longer holds
that office at the time of the issuance of such Series E Preferred Share Certificate, such Series E
Preferred Share Certificate shall be valid nevertheless.

     (d) A Series E Preferred Share Certificate shall not be valid or obligatory until an
authorized signatory of the Transfer Agent manually countersigns the Series E Preferred Share
Certificate. The signature shall be conclusive evidence that such Series E Preferred Share
Certificate has been authenticated under this Certificate of Designations. Each Series E Preferred
Share Certificate shall be dated the date of its authentication.

     Other than upon original issuance, all transfers and exchanges of the Series E Preferred Stock
shall be made by direct registration on the books and records of the Company.

     Section 13. Transfer Agent And Registrar. The duly appointed Transfer Agent and
Registrar for the Series E Preferred Stock shall be Wells Fargo Bank, N.A. (the “Transfer
Agent”). The Company may, in its sole discretion, remove the Transfer Agent in accordance with
the agreement between the Company and the Transfer Agent; provided that the Company

A-10

 

shall appoint a successor transfer agent who shall accept such appointment prior to the
effectiveness of such removal; provided further that such successor transfer agent shall be the
Transfer Agent for purposes of this Certificate of Designations.

     Section 14. Other Rights. The shares of the Series E Preferred Stock shall not have any
rights, preferences, privileges or voting powers or relative, participating, optional or other
special rights, or qualifications, limitations or restrictions thereof, other than as set forth
herein or in the Charter or as provided by applicable law.

A-11

 

EXHIBIT A

FORM OF SERIES E FIXED RATE NON-CUMULATIVE

PERPETUAL PREFERRED STOCK

($[•] LIQUIDATION PREFERENCE)

			
	 	 	 
	   NUMBER
	 	SHARES   
	[                    ]
	 	[                    ]

CUSIP [                    ]

AMERICAN INTERNATIONAL GROUP, INC.

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

THIS CERTIFICATE IS TRANSFERABLE

IN THE CITY OF SOUTH ST. PAUL, MINNESOTA

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO
IS IN EFFECT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR SUCH LAWS. EACH PURCHASER OF THE SECURITIES
REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. ANY TRANSFEREE OF THE SECURITIES
REPRESENTED BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (2) AGREES THAT IT WILL
NOT OFFER, SELL OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY THIS INSTRUMENT EXCEPT (A)
PURSUANT TO A REGISTRATION STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO
LONG AS THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE
SECURITIES REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND.

Exh A-1

 

 

     This is to certify that the UNITED STATES DEPARTMENT OF THE TREASURY is the owner of FOUR
HUNDRED THOUSAND (400,000) fully paid and non-assessable shares of Series E Fixed Rate
Non-Cumulative Perpetual Preferred Stock, $5.00 par value, liquidation preference $104,011.44 per
share (the “Stock”), of the American International Group, Inc. (the “Company”), transferable on the
books of the Company by the holder hereof in person or by duly authorized attorney upon surrender
of this certificate properly endorsed.

     This certificate is not valid or obligatory for any purpose unless countersigned and
registered by the Transfer Agent and Registrar.

     Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized
officers.

Dated: April 17, 2009

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	Name:

	 	Name:	 	 
	Title:

	 	Title:	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Countersigned and Registered	 	 
	 	 	 	, 	 
	 	 	as Transfer Agent and Registrar   	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signature	 	 

Exh A-2

 

 

AMERICAN INTERNATIONAL GROUP, INC.

     AMERICAN INTERNATIONAL GROUP, INC. (the “Company”) will furnish, without charge to each
stockholder who so requests, a copy of the certificate of designations establishing the powers,
preferences and relative, participating, optional or other special rights of each class of stock of
the Company or series thereof and the qualifications, limitations or restrictions of such
preferences and/or rights applicable to each class of stock of the Company or series thereof. Such
information may be obtained by a request in writing to the Secretary of the Company at its
principal place of business.

     This certificate and the share or shares represented hereby are issued and shall be held
subject to all of the provisions of the Company’s Restated Certificate of Incorporation, as
amended, and the Certificate of Designations of the Series E Fixed Rate Non-Cumulative Perpetual
Preferred Stock (Liquidation Preference $104,011.44 per share) (copies of which are on file with
the Transfer Agent), to all of which the holder, by acceptance hereof, assents.

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

	 	 	 	 	 	 	 
	TEN COM

	 	-
	 	as tenants in common
	 	UNIF GIFT MIN ACT-                      Custodian                     
	TEN ENT

	 	-
	 	as tenants by the entireties
	 	 
 
 
 
 
 
 
 
 
                  
(Minor)   
 
 
 
 
 
 
 
 

 
 
 
(Cust)
	JT TEN

	 	-
	 	as joint tenants with
	 	under Uniform Gifts to Minors Act
	 

	 	 	 	right of survivorship and not as
	 	                                        
	 

	 	 	 	tenants in common
	 	(State)

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

 

     For value received,                      hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

      IDENTIFYING NUMBER OF ASSIGNEE

 

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE

 

 

 

shares of the capital stock represented by the within certificate, and do(es) hereby irrevocably
constitute and appoint                                                             , Attorney to transfer the said stock on the books of
the within named Company with full power of substitution in the premises.

Exh A-3

 

 

Dated                                         

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	 

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

SIGNATURE GUARANTEED

	 	 	 
	 

	 	 
	 

	 	 
	NOTICE: The signature(s) should be
guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings
and loan associations, and credit unions
with membership in an approved signature
guarantee medallion program), pursuant to
Rule 17Ad-15 under the Securities
Exchange Act of 1934.
	 	 

Exh A-4

 

 

ANNEX B

FORM OF OPINION

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

     (b) The Series E Preferred Stock has been duly authorized and, when issued and delivered in
accordance with the Agreement, the Series E Preferred Stock will be validly issued and fully paid
and nonassessable, and will not be issued in violation of any preemptive rights.

     (c) The Company has the corporate power and authority to execute and deliver the Agreement and
to perform its obligations thereunder (including the issuance of the Series E Preferred Stock and
the Exchange Shares).

     (d) The execution, delivery and performance by the Company of the Agreement and the
consummation of the transactions contemplated thereby have been duly authorized by all necessary
corporate action on the part of the Company and its stockholders (other than (i) the vote of the
stockholders described in Section 3.1(b) of the Agreement and (ii) the corporate actions required
to consummate the transactions contemplated by Sections 3.7 and 3.8), and no further approval or
authorization is required on the part of the Company, other than (i) the vote of the stockholders
described in Section 3.1(b) of the Agreement and (ii) the corporate actions required to consummate
the transactions contemplated by Sections 3.7 and 3.8.

     (e) The Agreement is a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as the same may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the creditors’ rights and general
equitable principles, regardless of whether such enforceability is considered in a proceeding at
law or in equity; provided, however, such counsel need express no opinion with respect to Section
3.1(b), Section 3.7, Section 3.8 or Section 4.5(g) or the severability provisions of the Agreement
insofar as Section 3.1(b), Section 3.7, Section 3.8 or Section 4.5(g) is concerned.EX-10.1

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

dated as of

April 17, 2009

between

American International Group, Inc.

and

United States Department of the Treasury

 

 

 

TABLE OF CONTENTS

 

	 	 	 	 	 
	 	 	Page	 
	Article 1

	Commitment; Closing

	 
	 	 	 	 
	1.1 Commitment
	 	 	1	 
	1.2 Commitment Fee
	 	 	2	 
	1.3 Draws on Commitment
	 	 	2	 
	1.4 Termination of Investor’s Obligations
	 	 	2	 
	1.5 Commencement of Commitment
	 	 	2	 
	1.6 Conditions to Closing of Each Drawdown
	 	 	5	 
	1.7 Increases in Liquidation Preference
	 	 	5	 
	1.8 Interpretation
	 	 	6	 
	 
	 	 	 	 
	Article 2

	Representations and Warranties

	 
	 	 	 	 
	2.1 Disclosure
	 	 	6	 
	2.2 Representations and Warranties of the Company
	 	 	7	 
	 
	 	 	 	 
	Article 3

	Covenants

	 
	 	 	 	 
	3.1 Consummation of Purchase and Charter Amendment
	 	 	16	 
	3.2 Expenses
	 	 	17	 
	3.3 Sufficiency of Authorized Common Stock; Exchange Listing
	 	 	17	 
	3.4 Certain Notifications Until Closing
	 	 	18	 
	3.5 Information and Confidentiality
	 	 	18	 
	3.6 Additional Inspection Rights
	 	 	19	 
	3.7 Compliance with the Employ American Workers Act
	 	 	19	 
	3.8 Compliance with Guidelines of the Home Affordable Modification Program
	 	 	19	 
	3.9 Exchange of Series F Preferred Stock
	 	 	19	 
	3.10 Internal Controls
	 	 	20	 
	 
	 	 	 	 
	Article 4

	Additional Agreements

	 
	 	 	 	 
	4.1 Purchase of Restricted Securities
	 	 	20	 
	4.2 Legends
	 	 	21	 
	4.3 Certain Transactions
	 	 	22	 
	4.4 Transfer of Purchased Securities, the Warrant and the Warrant Shares
	 	 	22	 
	4.5 Registration Rights
	 	 	22	 
	4.6 Voting of Warrant Shares
	 	 	34	 

i

 

	 	 	 	 	 
	 	 	Page	 
	4.7 Depositary Shares
	 	 	34	 
	4.8 Restriction on Dividends and Repurchases
	 	 	35	 
	4.9 Repurchase of Investor Securities
	 	 	36	 
	4.10 Executive Compensation
	 	 	37	 
	4.11 Restrictions on Lobbying
	 	 	40	 
	4.12 Restrictions on Expenses
	 	 	40	 
	4.13 Risk Management Committee
	 	 	41	 
	4.14 Dividend Rate Adjustment
	 	 	41	 
	 
	 	 	 	 
	Article 5

	Miscellaneous

	 
	 	 	 	 
	5.1 Termination
	 	 	41	 
	5.2 Survival of Representations and Warranties
	 	 	42	 
	5.3 Amendment
	 	 	42	 
	5.4 Waiver of Conditions
	 	 	42	 
	5.5 Governing Law; Submission to Jurisdiction, Etc
	 	 	42	 
	5.6 Notices
	 	 	42	 
	5.7 Definitions
	 	 	43	 
	5.8 Assignment
	 	 	44	 
	5.9 Severability
	 	 	44	 
	5.10 Entire Agreement
	 	 	44	 
	5.11 No Third Party Beneficiaries
	 	 	44	 

LIST OF SCHEDULES

	 	 	 
	SCHEDULE A:

	 	ADDITIONAL TERMS AND CONDITIONS
	SCHEDULE B:

	 	CAPITALIZATION
	SCHEDULE C:

	 	LITIGATION
	SCHEDULE D:

	 	COMPLIANCE WITH LAWS
	SCHEDULE E:

	 	REGULATORY AGREEMENTS

LIST OF ANNEXES

	 	 	 
	ANNEX A:

	 	FORM OF CERTIFICATE OF DESIGNATIONS FOR PREFERRED STOCK
	ANNEX B:

	 	FORM OF COMMENCEMENT OPINION
	ANNEX C:

	 	FORM OF DRAWDOWN OPINION
	ANNEX D:

	 	WARRANT

ii

 

INDEX OF DEFINED TERMS

	 	 	 
	 	 	Location of
	Term	 	Definition
	Affiliate
	 	5.7(c)
	Agreement
	 	Recitals
	Appraisal Procedure
	 	4.9(c)(i)
	Available Amount
	 	1.1
	Bankruptcy Exceptions
	 	2.2(d)
	beneficially owns
	 	1.4
	Benefit Plans
	 	1.5(e)(iv)
	Board of Directors
	 	1.5(a)
	Business Combination
	 	5.8
	business day
	 	1.8
	Capitalization Date
	 	2.2(b)
	Certificate of Designations
	 	1.5(e)(iii)
	Charter
	 	2.2(a)
	Closing
	 	1.5(b)
	Code
	 	2.2(n)
	Commencement Date
	 	1.5(b)
	Commitment
	 	1.1
	Commitment Fee
	 	1.2
	Commitment Fee Payment Date
	 	1.2
	Common Stock
	 	Recitals
	Company
	 	Recitals
	Company Financial Statements
	 	2.2(h)
	Company Material Adverse Effect
	 	2.1(a)
	Company Reports
	 	2.2(i)(i)
	Company Subsidiary; Company Subsidiaries
	 	2.2(e)(ii)
	Compensation Regulations
	 	4.10(a)
	Control
	 	4.9(c)(iii)
	control; controlled by; under common control with
	 	5.7(c)
	Controlled Group
	 	2.2(n)
	Covered Employee
	 	4.10(b)(3)
	Credit Agreement
	 	3.5(a)
	Drawdown Amount
	 	1.3
	Drawdown Date
	 	1.3
	EESA
	 	1.5(e)(iv)
	employee benefit plan
	 	2.2(n)
	Equity Interests
	 	5.7(b)
	ERISA
	 	2.2(n)
	Exchange Act
	 	1.4
	Fair Market Value
	 	4.9(c)(ii)
	FP Retention Payment Amount
	 	1.1
	FRBNY
	 	3.5(a)

iii

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	Fund
	 	5.7(b)
	Funds
	 	4.10(e)
	GAAP
	 	2.1(a)
	Governmental Entities
	 	1.5(d)
	Holder
	 	4.5(k)(i)
	Holders’ Counsel
	 	4.5(k)(ii)
	Indemnitee
	 	4.5(g)(i)
	Information
	 	3.5(b)
	Investor
	 	Recitals
	Junior Stock
	 	4.8(c)
	knowledge of the Company; Company’s knowledge
	 	5.7(d)
	Last Fiscal Year
	 	2.1(b)
	Maximum Amount
	 	1.1
	officers
	 	5.7(d)
	Parity Stock
	 	4.8(c)
	Pending Underwritten Offering
	 	4.5(l)
	Permitted Repurchases
	 	4.8(a)(ii)
	Piggyback Registration
	 	4.5(a)(iv)
	Plan
	 	2.2(n)
	Plans
	 	1.5(e)(iv)
	Previously Disclosed
	 	2.1(b)
	Proprietary Rights
	 	2.2(u)
	Purchase
	 	Recitals
	Purchased Securities
	 	Recitals
	register; registered; registration
	 	4.5(k)(iii)
	Registrable Securities
	 	4.5(k)(iv)
	Registration Expenses
	 	4.5(k)(v)
	Regulatory Agreement
	 	2.2(s)
	Relevant Period
	 	1.5(e)(iv)
	Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415
	 	4.5(k)(vi)
	SEC
	 	2.1(b)
	Securities Act
	 	2.2(a)
	Selling Expenses
	 	4.5(k)(vii)
	Senior Executive Officers
	 	4.10(b)
	Senior Partners
	 	4.10(b)
	Series C Preferred Stock
	 	2.2(b)
	Series C Preferred Stock Purchase Agreement
	 	4.5(a)(vi)
	Series E Preferred Stock
	 	2.2(c)
	Series E Preferred Stock Exchange Agreement
	 	4.5(a)(vi)
	Series F Preferred Stock
	 	Recitals
	Share Dilution Amount
	 	4.8(a)(ii)
	Shelf Registration Statement
	 	4.5(a)(ii)

iv

 

	 	 	 
	 	 	Location of
	Term	 	Definition
	significant subsidiary
	 	2.2(a)
	Signing Date
	 	2.1(a)
	Special Registration
	 	4.5(i)
	Stockholder Proposal
	 	3.1(b)
	subsidiary
	 	5.7(a)
	Tax; Taxes
	 	2.2(o)
	Termination Date
	 	1.4
	Transfer
	 	4.4
	Transfer Agent
	 	1.7
	Trust
	 	1.4
	underwritten
	 	4.5(o)
	Warrant
	 	Recitals
	Warrant Shares
	 	2.2(d)

v

 

SECURITIES PURCHASE AGREEMENT

Recitals:

     WHEREAS, American International Group, Inc. (the “Company”) intends to issue in a private
placement 300,000 shares of the Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock (the
“Series F Preferred Stock”) and a warrant (the “Warrant”, and together with the Preferred Stock,
the “Purchased Securities”) to purchase 3,000 shares of the Company’s common stock (“Common
Stock”), and the United States Department of the Treasury (the “Investor”) intends to purchase (the
“Purchase”) the Purchased Securities from the Company; and

     WHEREAS, the Purchase will be governed by this Securities Purchase Agreement (including the
Schedules and Annexes hereto) (the “Agreement”).

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

Article 1

Commitment; Closing

     1.1 Commitment. The Investor hereby commits to provide to the Company on or after the Commencement
Date (as defined below) and prior to the Termination Date (as defined below), on the terms and
conditions set forth herein, immediately available funds in an amount up to, but not in excess of,
the Available Amount, as determined from time to time (the “Commitment”); provided that in no event
shall the aggregate amount funded under the Commitment exceed $29,835,000,000 (twenty nine billion
eight hundred and thirty five million dollars) (it being understood that this amount is equal to
$30,000,000,000 (thirty billion dollars) minus the FP Retention Payment Amount (as defined below)).
“FP Retention Payment Amount” means $165,000,000 (one hundred and sixty five million dollars),
which represents all retention payments made by AIG Financial Products Corp., AIG Trading Group
Inc. and their respective subsidiaries to their employees in March 2009. The aggregate liquidation
preference of the Series F Preferred Stock shall increase in connection with draws on the
Commitment, as set forth in Section 1.7. “Available Amount” means, as of any date of determination,
(a) the Maximum Amount minus (b) the aggregate amount of financial assistance (other than funding
under the Commitment) that the Investor has, following the Commencement Date, provided or agreed to
provide to the Company, its subsidiaries or any special purpose vehicle established by or for the
benefit of the Company or any of its subsidiaries, unless otherwise specified by the Investor, in
its sole discretion, under the terms of any such financial assistance. “Maximum Amount” means, as
of any date of determination, (a) $29,835,000,000 (twenty nine billion eight hundred and thirty
five million dollars) minus (b) the aggregate amount of the liquidation preference of the Series F
Preferred Stock as of that date.

 

 

     1.2 Commitment Fee. The Company shall pay to the Investor from the operating cash flow of
the Company an aggregate amount of $165,000,000 (the “Commitment Fee”), representing a fee payable
to the Investor for the agreement by the Investor to enter into the Commitment. The Commitment Fee
shall be payable to the Investor in three installment payments of $55,000,000 on each of the
following dates: December 17, 2010, August 17, 2012 and April 17, 2014 (each such date, a
“Commitment Fee Payment Date”); provided that if the aggregate amount of the Commitment Fee has not
been paid on or prior to the Termination Date the amount equal to $165,000,000 minus the aggregate
amount of the installment payments paid prior to the Termination Date shall be immediately payable
on the Termination Date. In the event that any Commitment Fee Payment Date would otherwise fall on
a day that is not a Business Day, the Commitment Fee Payment Date shall be the next Business
Day.

     1.3 Draws on Commitment. Subject to the fulfillment or waiver of the conditions to each
drawdown as set forth in Section 1.6, at any time on or after the Commencement Date and prior to
the Termination Date, the Company’s Chief Executive Officer, Chief Financial Officer or Treasurer
may, on behalf of the Company, request that the Investor provide immediately available funds to the
Company in an amount up to but not in excess of the Available Amount (the “Drawdown Amount”) as of
the date of such request (the “Drawdown Date”); provided that each request shall be for an amount
that equals or exceeds the lesser of (a) $1,000,000,000 (one billion dollars) and (b) the Available
Amount as of the date of such request. Any such request shall be valid only if it is in writing and
specifies the account of the Company to which such funds are to be transferred and contains a
certification of the Company’s Chief Executive Officer, Chief Financial Officer or Treasurer that
the requested amount does not exceed the Available Amount as of the date of such request. The
Investor shall provide such funds to the Company within five (5) business days of its receipt of
such request or such shorter period as may be agreed to by the parties hereto.

     1.4 Termination of Investor’s Obligations. All of the Investor’s obligations under and in
respect of the Commitment shall terminate upon the earliest to occur of (i) April 17, 2014, (ii)
the date on which the Available Amount equals zero, (iii) the date the Company becomes a debtor in
a pending case under Title 11, United States Code and (iv) the date the AIG Credit Facility Trust
(or any successor entity established for the sole benefit of the United States Treasury) (the
“Trust”) and the Investor do not, in the aggregate, beneficially own more than 50% of the aggregate
voting power of the Company’s voting securities (the “Termination Date”). “Beneficially owns” as
used in this Agreement is as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended from time to time (the “Exchange Act”).

     1.5 Commencement of Commitment.

     (a) On the terms and subject to the conditions set forth in this Agreement, the Company agrees
to sell to the Investor the Purchased Securities in exchange for the Investor’s entry into the
Commitment, with an understanding that the Board of Directors of the Company
(the “Board of Directors”) has determined that the value of the Investor’s entry into the
Commitment is at least equal to the aggregate of (i) the Commitment Fee, (ii) the aggregate par
value of the Series F Preferred Stock (iii) the value of the Warrant and (iv) the aggregate par
value of the Warrant Shares less the aggregate Exercise Price (as defined in the Warrant) of the
Warrant Shares (it being understood that the value received by the Company includes, but is not

2

 

limited to, consideration in the amount of the aggregate par value of the Warrant Shares less the
aggregate Exercise Price of the Warrant Shares, such value received shall take the form of the
Investor’s entry into the Commitment, and so long as the par value of the Common Stock is $2.50 per
share, the aggregate par value of the Warrant Shares less the aggregate Exercise Price of the
Warrant Shares shall be reserved and credited on the books and records of the Company in a special
reserve as directed by the Board of Directors).

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

     (c) Subject to the fulfillment or waiver of the conditions to the Closing in this Section 1.5,
at the Closing (i) the Company will deliver to the Investor the Series F Preferred Stock and the
Warrant, in each case as evidenced by one or more certificates dated the Commencement Date and
bearing appropriate legends as hereinafter provided for and (ii) upon verification of receipt of
the Preferred Stock and the Warrant by the Investor’s duly appointed custodian, the Investor shall
consummate the Purchase.

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

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

     (i) (A) the representations and warranties of the Company set forth in Section 2.2
shall be true and correct in all material respects as though made on and as of the
Commencement Date (other than representations and warranties that by their terms speak as of
another date, which representations and warranties shall be true and correct in all material
respects as of such other date) and (B) the Company shall have performed in all
material respects all obligations required to be performed by it under this Agreement
at or prior to the Commencement Date;

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

3

 

     (iii) the Company shall have duly adopted and filed with the Secretary of State of
Delaware the certificate of designations for the Series F Preferred Stock in substantially
the form attached hereto as Annex A (the “Certificate of Designations”) and such filing
shall have been accepted;

     (iv) (A) the Company shall have taken all necessary action to effect such changes to
its existing compensation, bonus, incentive and other benefit plans, arrangements and
agreements (including golden parachute, severance and employment agreements) (collectively,
“Plans”, and together with all such plans, arrangements and agreements hereafter adopted,
created or entered into, “Benefit Plans”) with respect to the Senior Executive Officers (and
to the extent necessary for such changes to be legally enforceable, each of the Senior
Executive Officers shall have duly consented in writing to such changes), as may be
necessary, during the Relevant Period, in order to comply with Section 111 of the Emergency
Economic Stabilization Act of 2008, as amended (the “EESA”), including the provisions for
Systemically Significant Failing Institutions, as implemented by guidance or regulation
issued thereunder, including Notice 2008-PSSFI, that has been issued and is in effect as of
the Commencement Date, including provisions prohibiting severance payments to the Senior
Executive Officers, (B) the Company shall have taken all necessary action to effect such
changes to its Plans with respect to the U.S.-based Senior Partners (and to the extent
necessary for such changes to be legally enforceable, each of the U.S.-based Senior Partners
shall have duly consented in writing to such changes), as may be necessary, during the
Relevant Period, in order to comply with the requirements in Section 4.10 of this Agreement
(as the requirements referred to in such Section are in effect as of the Commencement Date),
(C) the Company shall have used its best efforts to take all necessary action to effect such
changes to its Plans with respect to the other Senior Partners (and to the extent necessary
for such changes to be legally enforceable, to have each of the other Senior Partners duly
consent in writing to such changes), as may be necessary, during the Relevant Period, in
order to comply with the requirements in Section 4.10 of this Agreement (as the requirements
referred to in such Section are in effect as of the Commencement Date) and (D) the Investor
shall have received a certificate signed on behalf of the Company by a senior executive
officer certifying to the effect that the conditions set forth in Section 1.5(e)(iv)(A) and
(B) have been satisfied; “Relevant Period” means the period in which any obligation of the
Company arising from financial assistance provided under the Troubled Asset Relief Program
remains outstanding (excluding any period during which the Federal government only holds
warrants to purchase the Company’s Common Stock);

     (v) the Company shall have delivered to the Investor a written opinion from counsel to
the Company (which may be internal counsel), addressed to the Investor and dated as of the
Commencement Date, in substantially the form attached hereto as Annex B;

     (vi) the Company shall have delivered certificates in proper form evidencing the Series
F Preferred Stock to the Investor or its designee(s);

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     (vii) the Company shall have provided to the Investor, on the Commencement Date, a use
of capital plan in a form reasonably satisfactory to the Investor that describes the expected use of the aggregate
proceeds received under the Commitment; and

     (viii) the Company shall have duly executed the Warrant in substantially the form
attached hereto as Annex D and delivered such executed Warrant to the Investor or its
designee(s).

     1.6 Conditions to Closing of Each Drawdown. The obligation of the Investor to consummate any
drawdown on or following the Commencement Date is subject to the fulfillment (or waiver by the
Investor), on the applicable Drawdown Date, of each of the following conditions:

     (a) on such Drawdown Date, the Company is not a debtor in a pending case under Title 11,
United States Code;

     (b) on such Drawdown Date, the Trust and the Investor beneficially own in the aggregate more
than 50% of the aggregate voting power of the Company’s voting securities;

     (c) on or before such Drawdown Date, the Company shall have provided to the Investor an
outline,  in a form reasonably satisfactory to the Investor, of the expected uses by the Company of the Drawdown
Amount for such Drawdown Date;

     (d) the Investor shall have received a certificate signed on behalf of the Company by the
Chief Executive Officer, Chief Financial Officer or Treasurer certifying to the effect that (A) as
of such Drawdown Date, the representations and warranties of the Company set forth in Sections
2.2(a) relating solely to the due incorporation, valid existence and good standing of the Company
and the last sentence thereof, 2.2(b), 2.2(c), 2.2(d) and 2.2(e)(i) are true and correct in all
material respects as though made on and as of such Drawdown Date (other than representations and
warranties that by their terms speak as of another date, which representations and warranties shall
be true and correct in all material respects as of such other date, and the representations in
Section 2.2(b), which speak only as of the Commencement Date) and (B) the Company shall have
performed in all material respects all obligations required to be performed by it under this
Agreement at or prior to such Drawdown Date; and

     (e) the Company shall have delivered to the Investor a written opinion from counsel to the
Company (which may be internal counsel), addressed to the Investor and dated as of the Drawdown
Date, in substantially the form attached hereto as Annex C;

     1.7 Increases in Liquidation Preference. The aggregate liquidation preference of the
outstanding shares of Series F Preferred Stock shall be automatically increased by an amount equal
to the amount of each Drawdown pursuant to Section 1.3 that is actually funded by the Investor to
the Company, and such increase shall occur simultaneously with such funding and shall be allocated
ratably to the shares of Series F Preferred Stock. The Company shall duly mark its records and the
transfer agent for the Series F Preferred Stock (the “Transfer Agent”) shall complete the Schedule
of Increases of the Series F Preferred Stock Liquidation Preference in the

5

 

form attached to the
Series F Preferred Share Certificate (as defined in the Certificate of Designations) to reflect
each increase in the liquidation preference of the Series F Preferred Stock contemplated herein
(but, for the avoidance of doubt, such increase shall be effective regardless of whether the
Company has properly marked its records or the Transfer Agent has properly completed such
schedule).

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

Article 2

Representations and Warranties

     2.1 Disclosure.

     (a) “Company Material Adverse Effect” means a material adverse effect on (i) the business,
results of operation or financial condition of the Company and its consolidated subsidiaries taken
as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to include
the effects of (a) changes after the date of this Agreement (the
“Signing Date”) in general business, economic or market conditions (including changes
generally in prevailing interest rates, credit availability and liquidity, currency exchange rates
and price levels or trading volumes in the United States or foreign securities or credit markets),
or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in
each case generally affecting the industries in which the Company and its subsidiaries operate, (b)
changes or proposed changes after the Signing Date in generally accepted accounting principles in
the United States (“GAAP”) or regulatory accounting requirements, or authoritative interpretations
thereof, (c) changes or proposed changes after the Signing Date in securities, insurance and other
laws of general applicability or related policies or interpretations of

6

 

Governmental Entities (in
the case of each of these clauses (a), (b) and (c), other than changes or occurrences to the extent
that such changes or occurrences have or would reasonably be expected to have a materially
disproportionate adverse effect on the Company and its consolidated subsidiaries taken as a whole
relative to comparable U.S. insurance or financial services organizations), or (d) changes in the
market price or trading volume of the Common Stock, or any other equity, equity-related or debt
securities of the Company or its consolidated subsidiaries (it being understood and agreed that the
exception set forth in this clause (d) does not apply to the underlying reason giving rise to or
contributing to any such change); or (ii) the ability of the Company to consummate the Purchase and
the other transactions contemplated by this Agreement and the Warrant and perform its obligations
hereunder or thereunder on a timely basis.

     (b) “Previously Disclosed” means information set forth or incorporated in the Company’s Annual
Report on Form 10-K for the most recently completed fiscal year of the Company filed with the
Securities and Exchange Commission (the “SEC”) prior to the Signing Date (the “Last Fiscal Year”)
or in its other publicly available reports and forms filed with or furnished to the SEC under
Sections 13(a), 14(a) or 15(d) of the Exchange Act on or after the last day of the Last Fiscal Year
and prior to the Signing Date.

     2.2 Representations and Warranties of the Company. Except as Previously Disclosed, the Company
represents and warrants to the Investor that as of the Signing Date and as of the Commencement Date
and, with respect to clause (a) (the representations and warranties relating solely to the due
incorporation, valid existence and good standing of the Company and the last sentence thereof) and
clauses (b), (c), (d) and (e)(i) of this Section 2.2, as of each Drawdown Date (or such other date
specified herein):

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

     (b) Capitalization. The authorized capital stock of the Company and the outstanding
capital stock of the Company (including securities convertible into, or exercisable or exchangeable
for, capital stock of the Company) as of the most recent fiscal month-end preceding the Signing
Date, or such other date as the parties may agree (the “Capitalization

7

 

Date”), is set forth on
Schedule B. The outstanding shares of capital stock of the Company have been duly
authorized and are validly issued and outstanding, fully paid and non-assessable, and subject to no
preemptive rights (and were not issued in violation of any preemptive rights). As of the Signing
Date, the Company does not have outstanding any securities or other obligations providing the
holder the right to acquire Common Stock that is not reserved for issuance, and the Company has not
made any other commitment to authorize, issue or sell any Common Stock, except as specified on
Schedule B and including the Series C Perpetual, Convertible, Participating Preferred
Stock, par value $5.00 per share (the “Series C Preferred Stock”). Since the Capitalization Date,
the Company has not issued any shares of Common Stock, other than (i) shares issued upon the
exercise of stock options or delivered under other equity-based awards or other convertible
securities or warrants which were issued and outstanding on the Capitalization Date and disclosed
on Schedule B and (ii) shares disclosed on Schedule B.

     (c) Series F Preferred Stock. The Series F Preferred Stock has been duly and validly
authorized, and, when issued and delivered pursuant to this Agreement, such Series F Preferred
Stock will be duly and validly issued and fully paid and non-assessable, will not be issued in
violation of any preemptive rights, and, until the approval by the Company’s stockholders of the
amendment to the Charter to cause the Series F Preferred Stock, the Company’s Series E Fixed Rate
Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the “Series E Preferred
Stock”) and any other series of Serial Preferred Stock (as defined in the Charter) issued to the
Investor to rank senior to the Series C Preferred Stock, and any subsequently issued series of
Serial Preferred Stock (as defined in the Charter) that is not initially issued to the Investor,
will rank pari passu with all other series or classes of the Company’s preferred stock, whether or
not issued or outstanding, with respect to the payment of dividends and the distribution of assets
in the event of any dissolution, liquidation or winding up of the Company.

     (d) The Warrant and Warrant Shares. The Warrant has been duly authorized and, when
executed and delivered as contemplated hereby, will constitute a valid and legally binding
obligation of the Company enforceable against the Company in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally and general equitable principles,
regardless of whether such enforceability is considered in a proceeding at law or in equity
(“Bankruptcy Exceptions”). The shares of Common Stock issuable upon exercise of the Warrant (the
“Warrant Shares”) have been duly authorized and reserved for issuance upon exercise of the Warrant
and when so issued in accordance with the terms of the Warrant will be validly issued, fully paid
and non-assessable.

     (e) Authorization, Enforceability.

     (i) The Company has the corporate power and authority to execute and deliver this
Agreement and the Warrant and, subject to the approval of its stockholders described in
Section 3.1(b) and the corporate authorizations necessary to effect the transactions
contemplated by Section 3.9, to carry out its obligations hereunder and thereunder (which
includes the issuance of the Series F Preferred Stock, the Warrant and the Warrant Shares).
The execution, delivery and performance by the Company of this

8

 

Agreement and the Warrant and
the consummation of the transactions contemplated hereby and thereby have been duly
authorized by all necessary corporate action on the part of the Company and its
stockholders, and no further approval or authorization is required on the part of the
Company or its stockholders, except as described in Section 3.1(b) and the corporate
authorizations necessary to effect the transactions contemplated by Section 3.9. This
Agreement is a valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, subject to the Bankruptcy Exceptions.

     (ii) The execution, delivery and performance by the Company of this Agreement and the
Warrant and the consummation of the transactions contemplated hereby and thereby and
compliance by the Company with the provisions hereof and thereof, will not (A) violate,
conflict with, or result in a breach of any provision of, or constitute a default (or an
event which, with notice or lapse of time or both, would constitute a default) under, or
result in the termination of, or accelerate the performance required by, or result in a
right of termination or acceleration of, or result in the creation of, any lien, security
interest, charge or encumbrance upon any of the properties or assets of the Company or any
subsidiary of the Company (each a “Company Subsidiary” and, collectively, the “Company
Subsidiaries”) under any of the terms, conditions or provisions of (i) subject to the
approval of the Company’s stockholders as described in Section 3.1(b) and the corporate
authorizations necessary to effect the transactions contemplated by Section 3.9, its
organizational documents or (ii) any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which the Company or any
Company Subsidiary is a party or by which it or any Company Subsidiary may be bound, or to
which the Company or any Company Subsidiary or any of the properties or assets of the
Company or any Company Subsidiary may be subject, or (B) subject to compliance with the
statutes and regulations referred to in the next paragraph, violate any statute, rule or
regulation or any judgment, ruling, order, writ, injunction or decree applicable to the
Company or any Company Subsidiary or any of their respective properties or assets except, in
the case of clauses (A)(ii) and (B), for those occurrences that, individually or in the
aggregate, have not had and would not reasonably be expected to have a Company Material
Adverse Effect.

     (iii) Other than the filing of the Certificate of Designations with the Secretary of
State of Delaware, any current report on Form 8-K required to be filed with the SEC, such
filings and approvals as are required to be made or obtained under any state “blue sky”
laws, the filing of any proxy statement contemplated by Section 3.1(b), any filings
or approvals required in connection with the transactions contemplated by Section 3.9
and such as have been made or obtained, no notice to, filing with, exemption or review by,
or authorization, consent or approval of, any Governmental Entity is required to be made or
obtained by the Company in connection with the consummation by the Company of the Purchase
or the performance of its obligations hereunder, except for any such notices, filings,
exemptions, reviews, authorizations, consents and approvals the failure of which to make or
obtain would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect.

9

 

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

     (g) No Company Material Adverse Effect. Since the last day of the last completed
fiscal period for which the Company has filed a Quarterly Report on Form 10-Q or an Annual Report
on Form 10-K with the SEC prior to the Signing Date, no fact, circumstance, event, change,
occurrence, condition or development has occurred that, individually or in the aggregate, has had
or would reasonably be expected to have a Company Material Adverse Effect.

     (h) Company Financial Statements. The financial statements of the Company and its
consolidated subsidiaries (collectively, the “Company Financial Statements”) included or
incorporated by reference in the Company Reports filed with the SEC since December 31, 2006,
present fairly in all material respects the consolidated financial position of the Company and its
consolidated subsidiaries as of the dates indicated therein (or if amended prior to the Signing
Date, as of the date of such amendment) and the consolidated results of their operations for the
periods specified therein; and except as stated therein, such financial statements (A) were
prepared in conformity with GAAP applied on a consistent basis (except as may be noted therein),
(B) have been prepared from, and are in accordance with, the books and records of the Company and
the Company Subsidiaries and (C) complied as to form, as of their respective dates of filing with
the SEC, in all material respects with the applicable accounting requirements and with the
published rules and regulations of the SEC with respect thereto.

     (i) Reports.

     (i) Since December 31, 2006, the Company and each Company Subsidiary has timely filed
(subject to any permitted extension) all reports, registrations, documents, filings,
statements and submissions, together with any amendments thereto, that it was required to
file with any Governmental Entity (the foregoing, collectively, the
“Company Reports”) and has paid all fees and assessments due and payable in connection
therewith, except, in each case, as would not, individually or in the aggregate, reasonably
be expected to have a Company Material Adverse Effect. As of their respective dates of
filing, the Company Reports complied in all material respects with all statutes and
applicable rules and regulations of the applicable Governmental Entities. In the case of
each such Company Report filed with or furnished to the SEC, such Company Report (A) did
not, as of its date or if amended prior to the Signing Date, as of the date of such
amendment, contain an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made therein, in light of the circumstances

10

 

under
which they were made, not misleading, and (B) complied as to form in all material respects
with the applicable requirements of the Securities Act and the Exchange Act. With respect
to all other Company Reports, the Company Reports were complete and accurate in all material
respects as of their respective dates. No executive officer of the Company or any Company
Subsidiary has failed in any respect to make the certifications required of him or her under
Section 302 or 906 of the Sarbanes-Oxley Act of 2002. This Section 2.2(i)(i) shall not
apply with respect to tax returns, which shall be governed solely by the representations
made under Section 2.2(o).

     (ii) The records, systems, controls, data and information of the Company and the
Company Subsidiaries are recorded, stored, maintained and operated under means (including
any electronic, mechanical or photographic process, whether computerized or not) that are
under the exclusive ownership and direct control of the Company or the Company Subsidiaries
or their accountants (including all means of access thereto and therefrom), except for any
non-exclusive ownership and non-direct control that would not reasonably be expected to have
a material adverse effect on the system of internal accounting controls described below in
this Section 2.2(i)(ii). The Company (A) has implemented and maintains disclosure controls
and procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure that material
information relating to the Company, including the consolidated Company Subsidiaries, is
made known to the chief executive officer and the chief financial officer of the Company by
others within those entities, and (B) has disclosed, based on its most recent evaluation
prior to the Signing Date, to the Company’s outside auditors and the audit committee of the
Board of Directors (x) any significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting (as defined in Rule 13a-15(f) of the
Exchange Act) that are reasonably likely to adversely affect the Company’s ability to
record, process, summarize and report financial information and (y) any fraud, whether or
not material, that involves management or other employees who have a significant role in the
Company’s internal controls over financial reporting.

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

     (k) Offering of Securities. Neither the Company nor any person acting on its behalf
has taken any action (including any offering of any securities of the Company under circumstances
which would require the integration of such offering with the offering of any of the Series F
Preferred Stock or the Warrant under the Securities Act, and the rules and regulations of the SEC
promulgated thereunder), which might subject the offering or issuance of

11

 

any of the Series F
Preferred Stock or the Warrant to the Investor pursuant to this Agreement to the registration
requirements of the Securities Act.

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

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

     (n) Employee Benefit Matters. Except as would not reasonably be expected to have,
either individually or in the aggregate, a Company Material Adverse Effect: (A) each “employee
benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”)) providing benefits to any current or former employee, officer or
director of the Company or any member of its “Controlled Group” (defined as any
organization which is a member of a controlled group of corporations within the meaning of
Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”)) that is sponsored,
maintained or contributed to by the Company or any member of its Controlled Group and for which the
Company or any member of its Controlled Group would have any liability, whether actual or
contingent (each, a “Plan”) has been maintained in compliance with its terms and with the
requirements of all applicable statutes, rules and regulations, including ERISA and the Code; (B)
with respect to each Plan subject to Title IV of ERISA (including, for purposes of this clause (B),
any plan subject to Title IV of ERISA that the Company or any member of its Controlled

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Group
previously maintained or contributed to in the six years prior to the Signing Date), (1) no
“reportable event” (within the meaning of Section 4043(c) of ERISA), other than a reportable event
for which the notice period referred to in Section 4043(c) of ERISA has been waived, has occurred
in the three years prior to the Signing Date or is reasonably expected to occur in the current plan
year, (2) no “accumulated funding deficiency” (within the meaning of Section 302 of ERISA or
Section 412 of the Code), whether or not waived, has occurred in the three years prior to the
Signing Date or is reasonably expected to occur, (3) the fair market value of the assets under each
Plan exceeds the present value of all benefits accrued under such Plan (determined based on the
assumptions used to fund such Plan) and (4) neither the Company nor any member of its Controlled
Group has incurred in the six years prior to the Signing Date, or reasonably expects to incur, any
liability under Title IV of ERISA (other than contributions to the Plan or premiums to the PBGC in
the ordinary course and without default) in respect of a Plan (including any Plan that is a
“multiemployer plan”, within the meaning of Section 4001(c)(3) of ERISA); and (C) each Plan that is
intended to be qualified under Section 401(a) of the Code has received a favorable determination
letter from the Internal Revenue Service with respect to its qualified status that has not been
revoked, or such a determination letter has been timely applied for but not received by the Signing
Date, and nothing has occurred, whether by action or by failure to act, which could reasonably be
expected to cause the loss, revocation or denial of such qualified status or favorable
determination letter.

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

     (p) Properties and Leases. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, the Company and the Company
Subsidiaries have good and marketable title to all real properties and all other properties and
assets owned by them, in each case free from liens, encumbrances, claims and defects (other than
liens, encumbrances, claims or defects created pursuant to the Guarantee and
Pledge Agreement, dated as of September 22, 2008 and as amended, between the Company and the
FRBNY) that would affect the value thereof or interfere with the use made or to be made thereof by
them. Except as would not, individually or in the aggregate, reasonably be expected to have a
Company Material Adverse Effect, the Company and the Company Subsidiaries hold all leased real or
personal property under valid and enforceable leases with no exceptions that would interfere with
the use made or to be made thereof by them.

13

 

     (q) Environmental Liability. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect:

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

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

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

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

     (s) Agreements with Regulatory Agencies. Except as set forth on Schedule E,
to the knowledge of the Company, neither the Company nor any Company Subsidiary is subject to any
material cease-and-desist or other similar order or enforcement action issued by, or is a party to
any material written agreement, consent agreement or memorandum of understanding with, or is a
party to any commitment letter or similar undertaking to, or is subject to any capital directive
by, or since December 31, 2006, has adopted any board resolutions at the request of, any
Governmental Entity (other than the primary insurance regulators with jurisdiction over the
Company Subsidiaries) that currently restricts in any material respect the conduct of its business
or that in any material manner relates to its capital adequacy, its liquidity and funding policies
and practices, its ability to pay dividends, its credit, risk management or compliance policies or
procedures, its internal controls, its management or its operations or business. Each item in the
immediately preceding sentence and without taking into consideration of the parenthetical provided
therein, is referred to herein as a “Regulatory Agreement.” To the knowledge of the

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Company,
neither the Company nor any Company Subsidiary has been advised since December 31, 2006 by any such
Governmental Entity that it is considering issuing, initiating, ordering, or requesting any such
Regulatory Agreement (other than any such Regulatory Agreement that does not have a Company
Material Adverse Effect). Except as set forth on Schedule E, to the knowledge of the
Company, the Company and each Company Subsidiary are in compliance in all material respects with
each Regulatory Agreement to which it is party or subject, and, to the knowledge of the Company,
neither the Company nor any Company Subsidiary has received any notice from any Governmental Entity
indicating that either the Company or any Company Subsidiary is not in compliance in all material
respects with any such Regulatory Agreement.

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

     (u) Intellectual Property. Except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect, (i) the Company and each Company
Subsidiary owns or otherwise has the right to use, all intellectual property rights, including all
trademarks, trade dress, trade names, service marks, domain names, patents, inventions, trade
secrets, know-how, works of authorship and copyrights therein, that are used in the conduct of
their existing businesses and all rights relating to the plans, design and specifications of any of
its branch facilities (“Proprietary Rights”) free and clear of all liens and any claims of
ownership by current or former employees, contractors, designers or others and (ii) neither the
Company nor any of the Company Subsidiaries is materially infringing, diluting, misappropriating or
violating, nor has the Company or any or the Company Subsidiaries received any written (or, to the
knowledge of the Company, oral) communications alleging that any of them has materially infringed,
diluted, misappropriated or violated, any of the Proprietary Rights owned by any other person.
Except as would not, individually or in the aggregate, reasonably be expected to have a Company
Material Adverse Effect, to the Company’s knowledge, no other person is infringing, diluting,
misappropriating or violating, nor has the Company or any or the Company Subsidiaries sent any
written communications since January 1, 2006 alleging that any person has infringed, diluted,
misappropriated or violated, any of the Proprietary Rights owned by the Company and the Company
Subsidiaries.

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

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     (w) No Inconsistent Agreement. Prior to the Signing Date, the Company has not entered
into an agreement with respect to its securities that is inconsistent with the order of priority
set forth in Section 4.5(a)(vi) for the offering of securities under a Shelf Registration Statement
pursuant to Section 4.5(a)(ii) or a Piggyback Registration under Section 4.5(a)(iv).

Article 3

Covenants

     3.1
Consummation of Purchase and Charter Amendment. (a) Subject to the terms and conditions of
this Agreement, each of the parties will use its commercially reasonable efforts in good faith to
take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary,
proper or desirable, or advisable under applicable laws, so as to permit consummation of the
Purchase as promptly as practicable and otherwise to enable consummation of the transactions
contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party
to that end.

     (b) At and prior to the next annual meeting of the Company’s stockholders following the
Commencement Date, the Company shall take all action necessary under all applicable laws and
regulations and the Charter to vote at such meeting on a proposal (the “Stockholder Proposal”) to
amend the Charter to (i) permit the Board of Directors to issue classes of Serial Preferred Stock
(as defined in the Charter) that are not of equal rank, such that the Board of Directors or a duly
authorized committee thereof may, prior to issuance, in the resolution or resolutions providing for
the issue of shares of each particular series, provide whether the shares of such series rank
senior or junior to any other class of Serial Preferred Stock as to the right to receive dividends
and the right to receive payments out of the assets of the Company upon voluntary or involuntary
liquidation, dissolution or winding up of the Company and (ii) cause the Series F Preferred Stock
and any other series of Serial Preferred Stock issued to the Investor to rank senior to the Series
C Preferred Stock and any subsequently issued series of Serial Preferred Stock that is not issued
to the Investor, so that as a result of these amendments the Series C Preferred Stock and any other
subsequently issued series of Serial Preferred Stock that ranks pari passu with or junior to the
Series C Preferred Stock would not be entitled to vote on the subsequent creation or issuance of
any such senior Serial Preferred Stock. In connection with such meeting, the Company shall prepare
(and the Investor will reasonably cooperate with the Company to prepare) and file with the SEC a
preliminary proxy statement, shall use its reasonable best efforts to respond to any comments of
the SEC or its staff thereon and to cause a definitive proxy statement related to such
stockholders’ meeting to be mailed to the Company’s stockholders not more than five business days
after clearance thereof by the SEC. The Company
shall notify the Investor promptly of the receipt of any comments from the SEC or its staff
with respect to the proxy statement and of any request by the SEC or its staff for amendments or
supplements to such proxy statement or for additional information and will supply the Investor with
copies of all correspondence between the Company or any of its representatives, on the one hand,
and the SEC or its staff, on the other hand, with respect to such proxy statement. If at any time
prior to such stockholders’ meeting there shall occur any event that is required to be set forth in
an amendment or supplement to the proxy statement, the Company shall as promptly as

16

 

practicable
prepare and mail to its stockholders such an amendment or supplement. Each of the Investor and the
Company agrees promptly to correct any information provided by it or on its behalf for use in the
proxy statement if and to the extent that such information shall have become false or misleading in
any material respect, and the Company shall as promptly as practicable prepare and mail to its
stockholders an amendment or supplement to correct such information to the extent required by
applicable laws and regulations. The Company shall consult with the Investor prior to filing any
proxy statement, or any amendment or supplement thereto, and provide the Investor with a reasonable
opportunity to comment thereon. In the event that the approval of the Stockholder Proposal is not
obtained at such annual stockholders meeting, the Company shall include a proposal to approve such
proposal at a meeting of its stockholders no less than once in each subsequent twelve-month period
beginning on June 1, 2009 until such approval is obtained or made.

     (c) None of the information supplied by the Company or any of the Company Subsidiaries for
inclusion in any proxy statement in connection with any such stockholders meeting of the Company
will, at the date it is filed with the SEC, when first mailed to the Company’s stockholders and at
the time of any stockholders meeting, and at the time of any amendment or supplement thereof,
contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they are made, not
misleading.

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

     3.3 Sufficiency of Authorized Common Stock; Exchange Listing.

     (a) During the period from the Commencement Date until the date on which the Warrant has been
fully exercised, the Company shall at all times have reserved for issuance, free of preemptive or
similar rights, a sufficient number of authorized and unissued Warrant Shares to effectuate such
exercise. Nothing in this Section 3.3 shall preclude the Company from satisfying its obligations in
respect of the exercise of the Warrant by delivery of shares of Common Stock which are held in the
treasury of the Company. As soon as reasonably practicable following the Commencement Date, the
Company shall, at its expense, cause the Warrant Shares to be listed on the same national
securities exchange on which the Common Stock is listed, subject to
official notice of issuance, and shall maintain such listing for so long as any Common Stock
is listed on such exchange.

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

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     3.4 Certain Notifications Until Closing. From the Signing Date until the Closing, the Company
shall promptly notify the Investor of (i) any fact, event or circumstance of which it is aware and
which would reasonably be expected to cause any representation or warranty of the Company contained
in this Agreement to be untrue or inaccurate in any material respect or to cause any covenant or
agreement of the Company contained in this Agreement not to be complied with or satisfied in any
material respect and (ii) except as Previously Disclosed, any fact, circumstance, event, change,
occurrence, condition or development of which the Company is aware and which, individually or in
the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect;
provided, however, that delivery of any notice pursuant to this Section 3.4 shall not limit or
affect any rights of or remedies available to the Investor; provided, further, that a failure to
comply with this Section 3.4 shall not constitute a breach of this Agreement or the failure of any
condition set forth in Section 1.5 to be satisfied unless the underlying Company Material Adverse
Effect or material breach would independently result in the failure of a condition set forth in
Section 1.5 to be satisfied.

     3.5 Information and Confidentiality.

     (a) Until such time as the Investor ceases to own any Series F Preferred Stock, or except as
otherwise agreed, the Company shall provide the Investor (i) the information required to be
provided by the Company to the Federal Reserve Bank of New York (“FRBNY”) pursuant to Section 5.04
of the Credit Agreement dated as of September 22, 2008 between the Company and the FRBNY, as
amended from time to time (the “Credit Agreement”), and within the time periods for delivery
thereof specified in the Credit Agreement and (ii) the notices required by Section 5.05 of the
Credit Agreement and within the time periods for delivery thereof specified in the Credit
Agreement. After the termination of the Credit Agreement, such informational and notice
requirements as are provided in Section 5.04 and Section 5.05 of the Credit Agreement shall remain
in full force and effect until such time as the Investor no longer owns any Series F Preferred
Stock. In addition, during the Relevant Period, or except as otherwise agreed, the Company shall
provide the Investor a bi-annual report on the steps taken by the Company to comply in all respects
with Section 111 of the EESA, including the provisions for Systemically Significant Failing
Institutions, as implemented by any guidance or regulation issued thereunder as of the date of such
report, including Notice 2008-PSSFI, any amendments to Notice 2008-PSSFI, or any other guidance or
regulation applicable to the Company and with Section 4.10 of this Agreement. In addition, the
Company shall promptly provide the Investor such other information and notices as the Investor may
reasonably request from time to time.

     (b) The Investor will use reasonable best efforts to hold, and will use reasonable best
efforts to cause its agents, consultants, contractors and advisors to hold, in confidence all non-
public records, books, contracts, instruments, computer data and other data and information
(collectively, “Information”) concerning the Company furnished or made available to it by the
Company or its representatives pursuant to this Agreement (including pursuant to Sections 3.5 and
3.6) (except to the extent that such information can be shown to have been (1) previously known by
such party on a non-confidential basis, (2) in the public domain through no fault of such party or
(3) later lawfully acquired from other sources by the party to which it was furnished (and without
violation of any other confidentiality obligation)); provided that nothing

18

 

herein shall prevent the
Investor from disclosing any Information to the extent required by applicable laws or regulations
or by any subpoena or similar legal process.

     3.6 Additional Inspection Rights. During the Relevant Period, the Company shall permit (i)
the Investor and its agents, consultants, contractors and advisors, (ii) the Special Inspector
General of the Troubled Asset Relief Program, and (iii) the Comptroller General of the United
States access to personnel and any books, papers, records or other data delivered to it pursuant to
this Agreement or otherwise in its possession, custody or control, in each case to the extent
relevant to ascertaining compliance with the terms and conditions set forth in this Agreement,
during normal business hours and upon reasonable notice to the Company; provided that prior to
disclosing any information pursuant to clause (i), (ii) or (iii), the Investor, the Special
Inspector General of the Troubled Asset Relief Program and the Comptroller General of the United
States shall have agreed, with respect to documents obtained under this Agreement in furtherance of
their respective functions, to follow applicable laws and regulations (and the applicable customary
policies and procedures, including those for inspectors general) regarding the dissemination of
confidential materials, including redacting confidential information from the public version of its
reports, as appropriate, and soliciting input from the Company as to information that should be
afforded confidentiality. The Investor represents that it has been informed by the Special
Inspector General of the Troubled Asset Relief Program and the Comptroller General of the United
States that they, before making any request for access or information pursuant to their oversight
and audit functions, will establish a protocol to avoid, to the extent reasonably possible,
duplicative requests. Nothing in this Section 3.6 shall be construed to limit the authority that
the Special Inspector General of the Troubled Asset Relief Program or the Comptroller General of
the United States have under law.

     3.7 Compliance with the Employ American Workers Act. The Company shall, and the Company shall
take all necessary action to ensure that the Company Subsidiaries, as applicable, shall, comply in
all respects with the provisions of the Employ American Workers Act (Section 1611 of Division A,
Title XVI of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5)), as in effect from
time to time.

     3.8 Compliance with Guidelines of the Home Affordable Modification Program. The Company shall
take all necessary action to ensure that all Company Subsidiaries that are eligible for the Home
Affordable Modification Program shall execute a Commitment to Purchase Financial Instrument and
Servicer Participation Agreement with the Federal National Mortgage Association within 90 days of
the Commencement Date and otherwise comply with (i) the Home Affordable Modification Program
Guidelines issued by the Investor on March 4, 2009, (ii) Supplemental Directive 09-01 issued by the
Investor dated April 6, 2009 and (iii) any other
guidelines or regulations to be issued by the Investor as part of the Home Affordable
Modification Program.

     3.9 Exchange of Series F Preferred Stock. As soon as practicable following the amendment to
the Charter to increase the number of authorized shares of the Company’s Serial Preferred Stock (as
defined in the Charter) from 6,000,000 shares to 100,000,000 shares, the Company shall reserve for
issuance 3,000,000 authorized and unissued shares of Serial Preferred

19

 

Stock (as defined in the
Charter) and at any time after the Termination Date and prior to the date the Investor ceases to
own any shares of Series F Preferred Stock, the Investor shall have the right, in its sole
discretion, by giving a notice in accordance with Section 5.6 to cause the Company to take all
action necessary under all applicable laws and regulations and the Charter to exchange any of the
shares of Series F Preferred Stock owned by the Investor for a new series of Serial Preferred Stock
(as defined in the Charter) with the same terms as the Series F Preferred Stock (except that the
liquidation preference of such new series shall be $10,000 per share, or such liquidation
preference per share as shall be reasonably specified by the Investor and the aggregate liquidation
preference following such exchange shall be equal to the aggregate liquidation preference of the
Series F Preferred Stock prior to such exchange), in accordance with an exchange agreement
substantially in the form of this Agreement.

     3.10 Internal Controls.

     (a) The Company shall (i) promptly establish appropriate internal controls with respect to
compliance with each of the Company’s covenants and agreements set forth in Sections 4.8 through
4.13; (ii) prepare a report on a quarterly basis regarding the implementation of such internal
controls and the Company’s compliance (including any instances of non-compliance) with such
covenants and agreements; (iii) deliver such quarterly report to the Investor in accordance with
Section 5.6 and no later than the date by which its Quarterly Report on Form 10-Q or Annual Report
on Form 10-K is filed with the SEC; and (iv) provide a signed certification from a senior executive
officer of the Company to the Investor that such quarterly report is accurate to the best of his or
her knowledge, which certification shall be made subject to the requirements and penalties set
forth in Title 18, United States Code, Section 1001.

     (b) The Company shall (i) use its reasonable best efforts to account for its use of the
funding received under the Commitment; (ii) set up internal controls with respect to compliance
with the expected use of the funding received under the Commitment; (iii) report to the Investor on
a quarterly basis until all of the funding received under the Commitment has been accounted for
regarding the use of the funding received under the Commitment, the implementation of such internal
controls and the Company’s compliance (including any instances of non-compliance) therewith; (iv)
provide a signed certification from a senior executive officer of the Company to the Investor that
such quarterly report is accurate to the best of his or her knowledge, which certification shall be
made subject to the requirements and penalties set forth in Title 18, United States Code, Section
1001; and (v) deliver the certification to the Investor in accordance with Section 5.6 and no later
than the date by which its Quarterly Report on Form 10-Q or Annual Report on Form 10-K is filed
with the SEC.

Article 4

Additional Agreements

     4.1 Purchase of Restricted Securities. The Investor acknowledges that the Purchased
Securities and the Warrant Shares have not been registered under the Securities Act or under any
state securities laws. The Investor (a) is acquiring the Purchased Securities pursuant to an

20

 

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

     4.2 Legends.

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

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT
RELATING THERETO IS IN EFFECT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS.”

     (b) The Investor agrees that all certificates or other instruments representing the Series F
Preferred Stock will bear a legend substantially to the following effect:

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

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FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM
NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO THE ISSUER
OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE SECURITIES
REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND.”

     (c) In the event that any of the Purchased Securities or the Warrant Shares (i) become
registered under the Securities Act or (ii) are eligible to be transferred without restriction in
accordance with Rule 144 or another exemption from registration under the Securities Act (other
than Rule 144A), the Company shall issue new certificates or other instruments representing such
Purchased Securities or such Warrant Shares, which shall not contain the applicable legends in
Sections 4.2(a) and 4.2(b); provided that the Investor surrenders to the Company the previously
issued certificates or other instruments. Upon Transfer of all or a portion of the Warrant in
compliance with Section 4.4, the Company shall issue new certificates or other instruments
representing the Warrant, which shall not contain the applicable legend in Section 4.2(a); provided
that the Investor surrenders to the Company the previously issued certificates or other
instruments.

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

     4.4 Transfer of Purchased Securities, the Warrant and the Warrant Shares. Subject to
compliance with applicable securities laws, the Investor shall be permitted to transfer, sell,
assign or otherwise dispose of (“Transfer”) all or a portion of (i) the Series F Preferred Stock at
any time on or after the Termination Date and (ii) the Warrant or the Warrant Shares at any time
following the Commencement Date, and the Company shall take all steps as may be reasonably
requested by the Investor to facilitate the Transfer of the Series F Preferred Stock, the Warrant
or the Warrant Shares.

     4.5 Registration Rights.

     (a) Registration.

     (i) Subject to the terms and conditions of this Agreement, the Company covenants and
agrees that as promptly as practicable after notification from the Investor,

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and in any
event no later than 15 days after such notification, the Company shall prepare and file with
the SEC a Shelf Registration Statement covering all Registrable Securities (or otherwise
designate an existing Shelf Registration Statement filed with the SEC to cover the
Registrable Securities), and, to the extent the Shelf Registration Statement has not
theretofore been declared effective or is not automatically effective upon such filing, the
Company shall use reasonable best efforts to cause such Shelf Registration Statement to be
declared or become effective and to keep such Shelf Registration Statement continuously
effective and in compliance with the Securities Act and usable for resale of such
Registrable Securities for a period from the date of its initial effectiveness until such
time as there are no Registrable Securities remaining (including by refiling such Shelf
Registration Statement (or a new Shelf Registration Statement) if the initial Shelf
Registration Statement expires). So long as the Company is a well-known seasoned issuer (as
defined in Rule 405 under the Securities Act) at the time of filing of the Shelf
Registration Statement with the SEC, such Shelf Registration Statement shall be designated
by the Company as an automatic Shelf Registration Statement.

     (ii) Any registration pursuant to Section 4.5(a)(i) shall be effected by means of a
shelf registration on an appropriate form under Rule 415 under the Securities Act (a “Shelf
Registration Statement”). If the Investor or any other Holder intends to distribute any
Registrable Securities by means of an underwritten offering it shall promptly so advise the
Company and the Company shall take all reasonable steps to facilitate such distribution,
including the actions required pursuant to Section 4.5(c); provided that the Company shall
not be required to facilitate an underwritten offering of Registrable Securities unless the
expected gross proceeds from such offering exceed $200 million. The lead underwriters in
any such distribution shall be selected by the Holders of a majority of the Registrable
Securities to be distributed.

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

     (iv) If during any period when an effective Shelf Registration Statement is not
available, the Company proposes to register any of its equity securities, other than a
registration pursuant to Section 4.5(a)(i) or a Special Registration, and the registration
form to be filed may be used for the registration or qualification for distribution of

23

 

Registrable Securities, the Company will give prompt written notice to the Investor and all
other Holders of its intention to effect such a registration (but in no event less than ten
days prior to the anticipated filing date) and will include in such registration all
Registrable Securities with respect to which the Company has received written requests for
inclusion therein within ten business days after the date of the Company’s notice (a
“Piggyback Registration”). Any such person that has made such a written request may
withdraw its Registrable Securities from such Piggyback Registration by giving written
notice to the Company and the managing underwriter, if any, on or before the fifth business
day prior to the planned effective date of such Piggyback Registration. The Company may
terminate or withdraw any registration under this Section 4.5(a)(iv) prior to the
effectiveness of such registration, whether or not the Investor or any other Holders have
elected to include Registrable Securities in such registration.

     (v) If the registration referred to in Section 4.5(a)(iv) is proposed to be
underwritten, the Company will so advise the Investor and all other Holders as a part of the
written notice given pursuant to Section 4.5(a)(iv). In such event, the right of the
Investor and all other Holders to registration pursuant to Section 4.5(a) will be
conditioned upon such persons’ participation in such underwriting and the inclusion of such
person’s Registrable Securities in the underwriting if such securities are of the same class
of securities as the securities to be offered in the underwritten offering, and each such
person will (together with the Company and the other persons distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the Company; provided that the
Investor (as opposed to other Holders) shall not be required to indemnify any person in
connection with any registration. If any participating person disapproves of the terms of
the underwriting, such person may elect to withdraw therefrom by written notice to the
Company, the managing underwriters and the Investor (if the Investor is participating in the
underwriting).

     (vi) If either (x) the Company grants “piggyback” registration rights to one or more
third parties to include their securities in an underwritten offering under a Shelf
Registration Statement pursuant to Section 4.5(a)(ii) or (y) a Piggyback Registration under
Section 4.5(a)(iv) relates to an underwritten offering on behalf of the Company, and in
either case the managing underwriters advise the Company that in their reasonable opinion
the number of securities requested to be included in such offering exceeds the number which
can be sold without adversely affecting the marketability of such offering (including an
adverse effect on the per share offering price), the Company will include in such offering
only such number of securities that in the reasonable opinion of such
managing underwriters can be sold without adversely affecting the marketability of the
offering (including an adverse effect on the per share offering price), which securities
will be so included in the following order of priority: (A) first, in the case of a
Piggyback Registration under Section 4.5(a)(iv), the securities the Company proposes to
sell, (B) then the Registrable Securities (as defined in the Securities Exchange Agreement,
dated as of April 17, 2009, between the Company and the Investor (the “Series E Preferred
Stock Exchange Agreement”)) of the Investor and all other Holders who have received

24

 

Registrable Securities (as defined in the Series E Preferred Stock Exchange Agreement) from
the Investor and who have requested inclusion of Registrable Securities (as defined in the
Series E Preferred Stock Exchange Agreement) in accordance with the terms of the Series E
Preferred Stock Exchange Agreement, pro rata on the basis of the aggregate number of such
securities or shares owned by each such person, (C) then the Registrable Securities of the
Investor and all other Holders who have requested inclusion of Registrable Securities
pursuant to Section 4.5(a)(ii) or Section 4.5(a)(iv), as applicable, pro rata on the basis
of the aggregate number of such securities or shares owned by each such person, (D) then the
Registrable Securities (as defined in the Series C Perpetual, Convertible, Participating
Preferred Stock Purchase Agreement, dated as of March 1, 2009 (the “Series C Preferred Stock
Purchase Agreement”)) of the Trust and all other Holders who have received Registrable
Securities (as defined in the Series C Preferred Stock Purchase Agreement) from the Trust
and who have requested inclusion of Registrable Securities (as defined in the Series C
Preferred Stock Purchase Agreement) in accordance with the terms of the Series C Preferred
Stock Purchase Agreement, pro rata on the basis of the aggregate number of such securities
or shares owned by each such person and (E) lastly, any other securities of the Company that
have been requested to be so included, subject to the terms of this Agreement.

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

     (c) Obligations of the Company. The Company shall use its reasonable best efforts,
for so long as there are Registrable Securities outstanding, to take such actions as are in its
control to become a well-known seasoned issuer (as defined in Rule 405 under the Securities Act)
and once the Company becomes a well-known seasoned issuer to take such actions as are in its
control to remain a well-known seasoned issuer. In addition, whenever required to effect the
registration of any Registrable Securities or facilitate the distribution of Registrable Securities
pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as
reasonably practicable:

     (i) Prepare and file with the SEC, not later than fifteen (15) days after the request,
a registration statement with respect to such Registrable Securities and use all
commercially reasonable efforts to cause such registration statement to become effective, or
prepare and file with the SEC not later than ten (10) days after the request a prospectus
supplement with respect to a proposed offering of such Registrable Securities pursuant to an
effective registration statement, subject to Section 4.5(d), and, upon the request of the
Holders of a majority of the Registrable Securities registered thereunder, use all
commercially reasonable efforts to keep such registration statement effective and keep such
prospectus supplement current until the securities described therein are no longer
Registrable Securities.

25

 

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

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

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

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

     (vi) Give written notice to the Holders:

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

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

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

26

 

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

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

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

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

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

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

     (x) If an underwritten offering is requested pursuant to Section 4.5(a)(ii), enter into an
underwriting agreement in customary form, scope and substance and take all such other actions reasonably
requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by
the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition of such Registrable
Securities, and in connection therewith in any underwritten offering (including making members of management and executives
of the Company available to participate in “road shows”,

27

 

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

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

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

     (xiii)
If requested by Holders of a majority of the Registrable Securities
being registered and/or sold in connection therewith, or the managing underwriter(s),
if any,

28

 

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

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

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

     (e) Termination of Registration Rights. A Holder’s registration rights as to any
securities held by such Holder (and its Affiliates, partners, members and former members) shall not
be available unless such securities are Registrable Securities.

     (f) Furnishing Information.

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

     (ii) It shall be a condition precedent to the obligations of the Company to take any
action pursuant to Section 4.5(c) that the Investor and/or the selling Holders and the
underwriters, if any, shall furnish to the Company such information regarding themselves,
the Registrable Securities held by them and the intended method of disposition of such
securities as shall be required to effect the registered offering of their Registrable
Securities.

     (g) Indemnification.

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

     (ii) If the indemnification provided for in Section 4.5(g)(i) is unavailable to an
Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or
expenses referred to therein or is insufficient to hold the Indemnitee harmless as
contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall
contribute to the amount paid or payable by such Indemnitee as a result of such losses,
claims, damages, actions, liabilities, costs or expenses in such proportion as is
appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the
Company, on the other hand, in connection with the statements or omissions which resulted in
such losses, claims, damages, actions, liabilities, costs or expenses as well as any other
relevant equitable considerations. The relative fault of the Company, on the one hand, and
of the Indemnitee, on the other hand, shall be determined by reference to, among other
factors, whether the untrue statement of a material fact or omission to state a material
fact relates to information supplied by the Company or by the Indemnitee and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such

30

 

statement or omission. The Company and each Holder agree that it would not be just and
equitable if contribution pursuant to this Section 4.5(g)(ii) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 4.5(g)(i). No Indemnitee guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from the Company if the Company was not also guilty of such
fraudulent misrepresentation.

     (h) Assignment of Registration Rights. The rights of the Investor to registration of
Registrable Securities pursuant to Section 4.5(a) may be assigned by the Investor to a transferee
or assignee of Registrable Securities with a liquidation preference or, in the case of Registrable
Securities other than Series F Preferred Stock, a market value, no less than an amount equal $200
million; provided, however, the transferor shall, within ten days after such transfer, furnish to
the Company written notice of the name and address of such transferee or assignee and the number
and type of Registrable Securities that are being assigned. For purposes of this Section 4.5(h),
(i) “market value” per share of Common Stock shall be the last reported sale price of the Common
Stock on the national securities exchange on which the Common Stock is listed or admitted to
trading on the last trading day prior to the proposed transfer and (ii) “market value” for the
Warrant (or any portion thereof) shall be the market value per share of Common Stock into which the
Warrant (or such portion) is exercisable less the Exercise Price (as defined in the Warrant).

     (i) Clear Market. With respect to any underwritten offering of Registrable Securities
by the Investor or other Holders pursuant to this Section 4.5, the Company agrees not to effect
(other than pursuant to such registration or pursuant to a Special Registration) any public sale or
distribution, or to file any Shelf Registration Statement (other than such registration or a
Special Registration) covering, in the case of an underwritten offering of Common Stock or
Warrants, any of its equity securities or, in the case of an underwritten offering of Series F
Preferred Stock, any preferred stock of the Company, or, in each case, any securities convertible
into or exchangeable or exercisable for such securities, during the period not to exceed 10 days
prior and 60 days following the effective date of such offering or such longer period up to 90 days
as may
be requested by the managing underwriter for such underwritten offering. The Company also
agrees to cause such of its directors and senior executive officers to execute and deliver
customary lock-up agreements in such form and for such time period up to 90 days as may be
requested by the managing underwriter. “Special Registration” means the registration of (A) equity
securities and/or options or other rights in respect thereof solely registered on Form S-4 or Form
S-8 (or successor form) or (B) shares of equity securities and/or options or other rights in
respect thereof to be offered to directors, members of management, employees, consultants,
customers, lenders or vendors of the Company or Company Subsidiaries or in connection with dividend
reinvestment plans.

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

31

 

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

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

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

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

     (k) As used in this Section 4.5, the following terms shall have the following respective
meanings:

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

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

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

     (iv) “Registrable Securities” means (A) all Series F Preferred Stock, (B) the Warrant
(subject to Section 4.5(p)), (C) any equity securities issued or issuable directly or
indirectly with respect to the securities referred to in the foregoing clauses (A) or (B) by
way of conversion, exercise or exchange thereof, including the Warrant Shares, or share
dividend or share split or in connection with a combination of shares, recapitalization,
reclassification, merger, amalgamation, arrangement, consolidation or other reorganization,
provided that, once issued, such securities will not be Registrable

32

 

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

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

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

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

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

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

33

 

obligations of the
Company under this Section 4.5 in accordance with the terms and conditions of this Section 4.5.

     (n) No Inconsistent Agreements. The Company shall not, on or after the Signing Date,
enter into any agreement with respect to its securities that may impair the rights granted to the
Investor and the Holders under this Section 4.5 or that otherwise conflicts with the provisions
hereof in any manner that may impair the rights granted to the Investor and the Holders under this
Section 4.5. In the event the Company has, prior to the Signing Date, entered into any agreement
with respect to its securities that is inconsistent with the rights granted to the Investor and the
Holders under this Section 4.5 (including agreements that are inconsistent with the order of
priority contemplated by Section 4.5(a)(vi)) or that may otherwise conflict with the provisions
hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure they
are consistent with the provisions of this Section 4.5.

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

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

     4.6 Voting of Warrant Shares. Notwithstanding anything in this Agreement to the contrary, the
Investor shall not exercise any voting rights with respect to the Warrant Shares.

     4.7 Depositary Shares. Upon request by the Investor in connection with a proposed transfer of the
Series F Preferred Stock, the Company shall promptly enter into a depositary arrangement, pursuant
to customary agreements reasonably satisfactory to the Investor and with a depositary reasonably
acceptable to the Investor, pursuant to which the Series F Preferred Stock may be deposited and
depositary shares, each representing a fraction of a Series F Preferred Stock as specified by the
Investor, may be issued. From and after the execution of any such depositary arrangement, and the
deposit of any Series F Preferred Stock pursuant thereto, the depositary shares issued pursuant
thereto shall be deemed “Series F Preferred Stock” and, as applicable, “Registrable Securities” for
purposes of this Agreement.

34

 

     4.8 Restriction on Dividends and Repurchases.

     (a) Prior to the earlier of (x) the fifth anniversary of the Commencement Date and (y) the
date on which the Series F Preferred Stock has been redeemed in whole or the Investor has
transferred all of the Series F Preferred Stock to third parties which are not Affiliates of the
Investor, neither the Company nor any Company Subsidiary shall, without the consent of the
Investor:

     (i) declare or pay any dividend or make any distribution on the Common Stock (other
than (A) dividends payable solely in shares of Common Stock and (B) dividends or
distributions of rights or Junior Stock in connection with a stockholders’ rights plan); or

     (ii) redeem, purchase or acquire any shares of Common Stock or other capital stock or
other equity securities of any kind of the Company, or any trust preferred securities issued
by the Company or any Affiliate of the Company, other than (A) redemptions, purchases or
other acquisitions of any such securities held by the Investor, (B) redemptions, purchases
or other acquisitions of the Series E Preferred Stock and the Series F Preferred Stock, (C)
purchases or other acquisitions of Series C Preferred Stock from the Trust, (D) redemptions,
purchases or other acquisitions of shares of Common Stock or other Junior Stock, in each
case in this clause (D) in connection with the administration of any employee benefit plan
in the ordinary course of business (including purchases to offset the Share Dilution Amount
(as defined below) pursuant to a publicly announced repurchase plan) and consistent with
past practice; provided that any purchases to offset the Share Dilution Amount shall in no
event exceed the Share Dilution Amount, (E) any redemption or repurchase of rights pursuant
to any stockholders’ rights plan, (F) the acquisition by the Company or any of the Company
Subsidiaries of record ownership in Junior Stock or Parity Stock for the beneficial
ownership of any other persons (other than the Company or any other Company Subsidiary),
including as trustees or custodians (the “Permitted Repurchases”), (G) the conversion of the
Series C Preferred Stock into Common Stock and (H) the exchange or conversion of Junior
Stock (other than the Series C Preferred Stock) for or into other
Junior Stock or of Parity Stock or trust preferred securities for or into other Parity
Stock (with the same or lesser aggregate liquidation amount) or Junior Stock, in each case
set forth in this clause (H), solely to the extent required pursuant to binding contractual
agreements entered into prior to the Signing Date or any subsequent agreement for the
accelerated exercise, settlement or exchange thereof for Common Stock. “Share Dilution
Amount” means the increase in the number of diluted shares outstanding (determined in
accordance with GAAP, and as measured from the date of the Company’s most recently filed
financial statements of the Company and its consolidated subsidiaries prior to the
Commencement Date) resulting from the grant, vesting or exercise of equity-based
compensation to employees and equitably adjusted for any stock split, stock dividend,
reverse stock split, reclassification or similar transaction.

35

 

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

     (c) “Junior Stock” means Common Stock, the Series C Preferred Stock (after the Company’s
stockholders approve the amendment described in Section 3.1(b) to the Charter to have the Series F
Preferred Stock rank senior to the Series C Preferred Stock) and any class or series of stock of
the Company (i) initially issued to any person other than the Investor or (ii) initially issued to
the Investor and the terms of which expressly provide that it ranks junior to the Series F
Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding up
of the Company. “Parity Stock” means the Series E Preferred Stock, the Series C Preferred Stock
(before the Company’s stockholders approve the Charter amendment referred to in Section 3.1(b)) and
any class or series of stock of the Company the terms of which do not expressly provide that such
class or series will rank senior or junior to the Series F Preferred Stock as to dividend rights
and/or as to rights on liquidation, dissolution or winding up of the Company (in each case without
regard to whether dividends accrue cumulatively or non-cumulatively).

     4.9 Repurchase of Investor Securities.

     (a) Following the redemption in whole of the Series F Preferred Stock held by the Investor or
the Transfer by the Investor of all of the Series F Preferred Stock to one or more third parties
not affiliated with the Investor and so long as the Investor does not Control the Company, the
Company may repurchase, in whole or in part, at any time any other equity or debt securities of the
Company owned by the Investor or the Warrant or the Warrant Shares and then held by the Investor,
upon notice given as provided in clause (b) below, at the Fair Market Value of the equity or debt
security. For the avoidance of doubt, while there is Board of Directors control (or the potential
to gain Board of Directors control as a result of existing contractual rights) by the Investor (or
any affiliate of the Investor), the Company may not exercise its rights under this Section 4.9.

     (b) Notice of every repurchase of equity securities of the Company held by the Investor shall
be given at the address and in the manner set forth for such party in Section 5.6. Each notice of
repurchase given to the Investor shall state: (1) the number and type of securities to be
repurchased, (2) the Board of Directors’ determination of Fair Market Value of such securities and
(3) the place or places where certificates representing such securities are to be surrendered for
payment of the repurchase price. The repurchase of the securities specified in the notice shall
occur as soon as practicable following the determination of the Fair Market Value of the
securities.

     (c) As used in this Section 4.9, the following terms shall have the following respective
meanings:

36

 

     (i) “Appraisal Procedure” means a procedure whereby two independent appraisers, one
chosen by the Company and one by the Investor, shall mutually agree upon the Fair Market
Value. Each party shall deliver a notice to the other appointing its appraiser within 10
days after the Appraisal Procedure is invoked. If within 30 days after appointment of the
two appraisers they are unable to agree upon the Fair Market Value, a third independent
appraiser shall be chosen within 10 days thereafter by the mutual consent of such first two
appraisers. The decision of the third appraiser so appointed and chosen shall be given
within 30 days after the selection of such third appraiser. If three appraisers shall be
appointed and the determination of one appraiser is disparate from the middle determination
by more than twice the amount by which the other determination is disparate from the middle
determination, then the determination of such appraiser shall be excluded, the remaining two
determinations shall be averaged and such average shall be binding and conclusive upon the
Company and the Investor; otherwise, the average of all three determinations shall be
binding upon the Company and the Investor. The costs of conducting any Appraisal Procedure
shall be borne by the Company.

     (ii) “Fair Market Value” means, with respect to any security, the fair market value of
such security as determined by the Board of Directors, acting in good faith in reliance on
an opinion of a nationally recognized independent investment banking firm retained by the
Company for this purpose and certified in a resolution to the Investor. If the Investor
does not agree with the Board of Directors’ determination, it may object in writing within
10 days of receipt of the Board of Directors’ determination. In the event of such an
objection, an authorized representative of the Investor and the chief executive officer of
the Company shall promptly meet to resolve the objection and to agree upon the Fair Market
Value. If the chief executive officer and the authorized representative are unable to agree
on the Fair Market Value during the 10-day period following the delivery of the Investor’s
objection, the Appraisal Procedure may be invoked by either party to determine the Fair
Market Value by delivery of a written notification thereof not later than the 30th day after
delivery of the Investor’s objection.

     (iii) “Control” means the power to direct the management and policies of the Company,
directly or indirectly, whether through the ownership of voting securities, by contract, by
the power to control the Board of Directors or otherwise.

     4.10 Executive Compensation.

     (a) During the Relevant Period, the Company shall take all necessary action to ensure that its
Benefit Plans comply in all respects with Section 111 of the EESA, including the provisions for
Systemically Significant Failing Institutions, as implemented by any guidance or regulation
thereunder, including Notice 2008-PSSFI, any amendments to Notice 2008-PSSFI, or any other guidance
or regulations under Section 111 of the EESA, as the same shall be in effect from time to time
(“Compensation Regulations”), and shall not adopt any new Benefit Plan (i) that does not comply
therewith or (ii) that does not expressly state and require that such Benefit Plan and any
compensation thereunder shall be subject to any relevant Compensation Regulations adopted, issued
or released on or after the date any such Benefit Plan is adopted. To

37

 

the extent that the
Compensation Regulations change during the Relevant Period in a manner that requires changes to
then-existing Benefit Plans, the Company shall effect such changes to its Benefit Plans as promptly
as practicable after it has actual knowledge of such changes in order to be in compliance with this
Section 4.10(a) (and shall be deemed to be in compliance for a reasonable period to effect such
changes).

     (b) (1) In addition to the requirements set forth in Section 4.10(a) above, the Company shall,
during the Relevant Period, take all necessary action to limit any “golden parachute payments” to
the employees of the Company and the Company Subsidiaries who participate in the Company’s Senior
Partners Plan (the “Senior Partners”) to the amounts permitted by the regulations relating to
participants in the EESA Capital Purchase Program and the guidelines and rules relating thereto,
including the rules set forth in 31 CFR Part 30, that have been issued and are in effect as of the
Commencement Date, as if such Senior Partners were Senior Executive Officers for purposes of the
EESA (except that equity denominated awards settled solely in equity shall not be included in such
limit on “golden parachute payments” to Senior Partners). “Senior Executive Officers” means the
Company’s “senior executive officers” as defined in Section 111 of the EESA and regulations issued
or to be issued thereunder, including the rules set forth in 31 CFR Part 30 or any rules that
replace 31 CFR Part 30; provided that, solely for the purposes of the foregoing sentence, “Senior
Executive Officers” shall mean the Company’s “senior executive officers” as defined in Section 111
of the EESA and regulations issued thereunder, including the rules set forth in 31 CFR Part 30 that
have been issued and are effective as of the Commencement Date.

     (2) In addition to the requirements set forth Section 4.10(a) above, in furtherance of
the Company’s commitment to limit golden parachute payments to certain Senior Partners as
set forth in Section 4.10(b)(1), and to ensure compliance with the provisions of the EESA
Capital Purchase Program and the guidelines and regulations relating thereto applicable to
certain Senior Partners pursuant to Section 4.10(b)(1), it is further agreed that the
Company shall take all necessary action to ensure that the sum of (A) a Senior Partner’s
annual bonus for 2009, (B) all retention payments paid or payable to such Senior Partner
under any retention arrangement between the Senior Partner and the Company for any period
ending on or prior to March 31, 2010 and (C) any and all amounts paid or payable to such
Senior Partner in connection with the termination of such Senior Partner’s employment prior
to March 31, 2010 which would be taken into
account in applying the compensation limitation under Section 4.10(b)(1) above, other
than any payments pursuant to outstanding awards under the Company’s Senior Partners Plan,
shall not exceed 3.5 times the sum of such Senior Partner’s base salary and target annual
bonus for 2008. For this purpose, actual annual bonus for 2009 and target annual bonus for
2008 will include supplemental bonus and quarterly cash payments under the Company’s
historic quarterly bonus program consistent with, and in amounts not exceeding, past
practice.

     (3) For the avoidance of doubt, (i) the limits of Sections 4.10(b)(1) and (2) are in
addition to any applicable requirements under provisions of the EESA prohibiting golden
parachute payments to the Senior Executive Officers and the relevant

38

 

Compensation
Regulations, and (ii) to the extent that any Benefit Plan or any payment permissible under
Section 4.10(c) is inconsistent with any relevant Compensation Regulations, such
Compensation Regulations shall control.

     Notwithstanding the other provisions of this Section 4.10, the Company’s obligations
under this Section 4.10(b) shall be on a best efforts basis with respect to the Senior
Partners who are not U.S.-based to the extent of its existing Benefit Plans. In addition,
after the Commencement Date in connection with the hiring or promotion of a Covered Employee
and/or the promulgation of applicable Compensation Regulations, to the extent any Covered
Employee shall not have executed a waiver with respect to the application to such Covered
Employee of the Compensation Regulations, the Company shall use its best efforts to (i)
obtain from such Covered Employee a waiver in a form satisfactory to the Investor and (ii)
deliver such waiver to the Investor as promptly as possible. “Covered Employee” means each
(i) Senior Executive Officer, (ii) Senior Partner and (iii) other employee of the Company or
its subsidiaries determined at any time to be subject to Section 111 of the EESA.

     (c) During the Relevant Period, the Company shall take all necessary action to ensure that the
annual bonus pools payable to the Senior Executive Officers and the Senior Partners in respect of
each of 2008 and 2009 shall not exceed the average of the annual bonus pools paid to the Senior
Executive Officers and the Senior Partners for 2006 and 2007 (in each case exclusive of the
Company’s historic quarterly bonus program including but not limited to supplemental bonus and
quarterly cash payments, the amount of which will not increase for any participant) and subject to
appropriate adjustment for new hires and departures.

     (d) [RESERVED].

     (e) The Company confirms that none of (i) the funds provided to the Company under the Credit
Agreement or (ii) any funds provided to the Company on any Drawdown Date (collectively, the
“Funds”) were used nor shall they be used to pay annual bonuses, or other future cash performance
awards to executives of the Company or Senior Partners. The parties desire that this confirmation
be auditable and agree that there are a number of appropriate methods for verifying this
confirmation (particularly in light of expected business changes at the Company). Until the date
that any annual bonuses in respect of 2009 are paid, it is agreed that
the test for the foregoing will be that, at the time when any annual bonuses or cash
performance awards granted after the date of this Agreement are paid to executive officers or
Senior Partners, the Company will have received aggregate dividends, distributions and other
payments from its subsidiaries subsequent to September 16, 2008 greater than the aggregate amount
of such annual bonuses, such cash performance awards and amounts paid pursuant to the Company’s
historic quarterly bonus program (including but not limited to supplemental bonus and quarterly
cash payments, the amount of which will not increase for any participant) paid to executive
officers and Senior Partners subsequent to that date. At and after the date that any annual
bonuses in respect of 2009 are paid, the test for the foregoing confirmation will be that, at the
time when any annual bonuses or cash performance awards granted after the date of this Agreement
are vested or otherwise earned by executive officers or Senior Partners, the aggregate adjusted net
income

39

 

for the relevant year (being the year in which or in respect of which such bonuses or awards
are vested or so earned) of the insurance company subsidiaries of the Company included for such
year in the consolidated financial statements of the Company, excluding any such adjusted net
income that was dividended or otherwise distributed to the Company and taken into account in
satisfying the test under the prior sentence, shall exceed the aggregate amount of such annual
bonuses, such cash performance awards and amounts pursuant to the Company’s historic quarterly
bonus program (including but not limited to supplemental bonus and quarterly cash payments, the
amount of which will not increase for any participant), in each case vested or otherwise earned in
or in respect of such year. Each party agrees to negotiate in good faith and promptly at the
request of the other to develop additional or alternative appropriate formulations to test for this
confirmation.

     (f) The Company confirms that none of the Funds has been nor shall be used to pay any
electively deferred compensation in respect of or otherwise resulting from the termination of the
deferred compensation plans by the Company or the Company Subsidiaries as described in Item 5.02 of
the Company’s Current Report on Form 8-K dated November 18, 2008.

     4.11 Restrictions on Lobbying. Until such time as the Investor ceases to own any Series F
Preferred Stock, the Company shall continue to maintain and implement its comprehensive written
policy on lobbying, governmental ethics and political activity and distribute such policy to all
Company employees and lobbying firms involved in any such activity. Any material amendments to
such policy shall require the prior written consent of the Investor until the Investor no longer
owns any Series F Preferred Stock, and any material deviations from such policy, whether in
contravention thereof or pursuant to waivers provided for thereunder, shall promptly be reported to
the Investor. Such policy shall, at a minimum, (i) require compliance with all applicable law;
(ii) apply to the Company, the Company Subsidiaries and affiliated foundations; (iii) govern (a)
the provision of items of value to any government officials, (b) lobbying and (c) political
activities and contributions; and (iv) provide for (a) internal reporting and oversight and (b)
mechanisms for addressing non-compliance with the policy.

     4.12 Restrictions on Expenses. Until such time as the Investor ceases to own any Series F
Preferred Stock, the Company shall continue to maintain and implement its comprehensive written
policy on corporate expenses and distribute such policy to all Company
employees by posting such policy on the Company’s intranet and directing all Company employees
via electronic mail to review such policy as posted. Any material amendments to such policy shall
require the prior written consent of the Investor until such time as the Investor no longer owns
any Series F Preferred Stock, and any material deviations from such policy, whether in
contravention thereof or pursuant to waivers provided for thereunder, shall promptly be reported to
the Investor. Such policy shall, at a minimum: (i) require compliance with all applicable law;
(ii) apply to the Company and the Company Subsidiaries; (iii) govern (a) the hosting, sponsorship
or other payment for conferences and events, (b) the use of corporate aircraft, (c) travel
accommodations and expenditures, (d) consulting arrangements with outside service providers, (e)
any new lease or acquisition of real estate, (f) expenses relating to office or facility
renovations or relocations and (g) expenses relating to entertainment or holiday parties;

40

 

and (iv)
provide for (a) internal reporting and oversight and (b) mechanisms for addressing non-compliance
with the policy.

     4.13 Risk Management Committee. The Company has established and, during the Relevant Period, will
maintain a risk management committee of the Board of Directors that will oversee the major risks
involved in the Company’s business operations and review the Company’s actions to mitigate and
manage those risks.

     4.14 Dividend Rate Adjustment. The dividend rate on the Series F Preferred Stock beneficially
owned at the time by the Investor is subject to adjustment in the sole discretion of the Secretary
of the Department of the Treasury in light of, inter alia, then-prevailing economic conditions and
the financial condition of the Company, with the objective of protecting the U.S. taxpayer.

Article 5

Miscellaneous

     5.1 Termination. This Agreement may be terminated at any time prior to the Commencement Date:

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

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

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

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

41

 

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

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

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

     5.5 Governing Law; Submission to Jurisdiction, Etc. This Agreement, and the rights and
obligations of the parties hereunder, shall be governed by, and construed and interpreted in
accordance with, United States federal law and not the law of any State. To the extent that a court
looks to the laws of any State to determine or define the United States federal law, it is the
intention of the parties hereto that such court shall look only to the laws of the State of New
York without regard to the rules of conflicts of laws. Each of the parties hereto agrees (a) to
submit to the exclusive jurisdiction and venue of the United States District Court for the District
of Columbia and the United States Court of Federal Claims for any and all actions, suits or
proceedings arising out of or relating to this Agreement or the Warrant or the transactions
contemplated hereby or thereby, and (b) that notice may be served upon (i) the Company at the
address and in the manner set forth for notices to the Company in Section 5.6 and (ii) the Investor
in accordance with federal law. To the extent permitted by applicable law, each of the parties
hereto hereby unconditionally waives trial by jury in any legal action or proceeding relating to
this Agreement or the Warrant or the transactions contemplated hereby or thereby.

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

42

 

If to the Investor:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, DC 20220

Attention: Chief Counsel, Office of Financial Stability

Telecopy: (202) 927-9225

Email: ofschiefcounselnotices@do.treas.gov

           TARP.Compliance@do.treas.gov

If to the Company:

American International Group, Inc.

70 Pine Street, New York, New York 10270

Attention: General Counsel

Facsimile: (212) 785-2175

Telephone: (212) 770-7000

with a copy to:

Sullivan & Cromwell LLP

125 Broad Street, New York, New York 10004

Attention: Robert W. Reeder III, Michael M. Wiseman

Telephone: (212) 558-4000

     5.7 Definitions.

     (a) When a reference is made in this Agreement to a subsidiary of a person, the term
“subsidiary” means any corporation, partnership, joint venture, limited liability company or other
entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which
a majority of the voting securities or other voting interests, or a majority of the securities or
other interests of which having by their terms ordinary voting power to elect a majority of the
board of directors or persons performing similar functions with respect to such entity, is directly
or indirectly owned by such person and/or one or more subsidiaries thereof; provided that no Fund
shall be a subsidiary for purposes of this Agreement.

     (b) The term “Fund” means any investment vehicle managed by the Company or an Affiliate of the
Company and created in the ordinary course of the Company’s asset management business for the
purpose of selling Equity Interests in such investment vehicle to third parties. “Equity
Interests” means shares of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity interests in any entity, and any
option, warrant or other right entitling the holder thereof to purchase or otherwise acquire any
such equity interest.

     (c) The term “Affiliate” means, with respect to any person, any person directly or indirectly
controlling, controlled by or under common control with, such other person. For

43

 

purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”) when used with respect to any person, means the possession, directly or
indirectly, of the power to cause the direction of management and/or policies of such person,
whether through the ownership of voting securities by contract or otherwise.

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

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

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

     5.10 Entire Agreement. This Agreement (including the Annexes and Schedules hereto) constitutes the
entire agreement, and supersedes all other prior agreements, understandings, representations and
warranties, both written and oral, between the parties, with respect to the subject matter hereof.

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

[Signature Page Follows]

44

 

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

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By:  	/s/  Anastasia D. Kelly	 
	 	 	Name:  	Anastasia D. Kelly	 
	 	 	Title:  	Vice Chairman	 
	 
	 	UNITED STATES DEPARTMENT OF THE TREASURY

 	 
	 	By:  	/s/  Neel Kashkari	 
	 	 	Name:  	Neel Kashkari	 
	 	 	Title:  	Interim Assistant Secretary

For Financial Stability	 
	 

Date: April 17, 2009

 

 

SCHEDULE A

ADDITIONAL TERMS AND CONDITIONS

Company Information:

     Name of the Company: American International Group, Inc.

     Corporate or other organizational form: Corporation

     Jurisdiction of Organization: Delaware

Terms of the Purchase:

     Series of Serial Preferred Stock Purchased: Series F Fixed Rate Non-Cumulative Perpetual
Preferred Stock (the “Series F Preferred Stock”)

     Per Share Liquidation Preference of Series F Preferred Stock: Initially $0, as such
liquidation preference shall be adjusted from time to time upon each drawdown by the per share
amount of such drawdown.

     Number of Shares of Series F Preferred Stock Purchased: 300,000

     Dividend Payment Dates on the Series F Preferred Stock: February 1, May 1, August 1
and November 1

Number of Warrant Shares: 3,000

Exercise Price of the Warrant: Initially $2.50 per share of Common Stock

Closing:

	 	 	 
	     Location of Closing:

	 	Sullivan & Cromwell LLP
	 

	 	125 Broad Street
	 

	 	New York, NY 10004
	 
	 	 
	     Time of Closing:

	 	2:00 p.m., New York time
	 
	 	 
	     Date of Closing:

	 	April 17, 2009

 

 

SCHEDULE B

CAPITALIZATION

Capitalization Date: April 15, 2009

Common Stock

Par value: $2.50 per share

Total Authorized: 5,000,000,000

Outstanding: 2,690,805,447

Subject to warrants, options, convertible securities, etc.: Up to 154,738,080 shares are
reserved for issuance pursuant to the Purchase Contract Agreement between the Company and
The Bank of New York, as Purchase Contract Agent, dated as of May 16, 2008

Reserved for benefit plans and other issuances: 166,516,638 (as of April 15, 2009)

Remaining authorized but unissued: 2,309,194,553

Shares issued after Capitalization Date (other than pursuant to warrants, options,
convertible securities, etc. as set forth above): 0

Serial Preferred Stock

Par value: $5.00 per share

Total Authorized: 6,000,000

Outstanding (by series):

- 100,000 shares of the Series C Preferred Stock, par value $5.00 per share that is
convertible into Common Stock1; and

 

			
	1	 	In accordance with Section 6.1 and Section 6.2 of the
Securities Purchase Agreement for the Series C Perpetual, Convertible,
Participating Preferred Stock the Company has agreed to amend, among other
things, (i) the Charter to reduce the par value of the Common Stock to
$0.000001 per share, and increase the number of authorized shares of Common
Stock to 19 billion, (ii) the Charter to reduce the par value of the Company’s
Serial Preferred Stock (as defined in the Charter) to $0.00004 per share and
increase the number of authorized shares of the Company’s Serial Preferred
Stock to 13 billion (the “Serial Preferred Stock Amendment Proposal”) and (iii)
the Certificate of Designations such that (1) the number of shares of Series C
Preferred Stock authorized and outstanding upon the effectiveness of the Serial
Preferred Stock Amendment Proposal shall be the Number of Underlying Shares (as
defined in the Certificate of Designations) as of the effective date of the
Serial Preferred Stock Amendment Proposal, (2) the Conversion Ratio (as defined
in the Certificate of Designations) as of any date
(...continued)

 

 

- 4,000,000 shares of the Series D Fixed Rate Cumulative Perpetual Preferred Stock,
par value $5.00, and liquidation preference $10,000 per share.

Issued: 4,100,000

Reserved for Issuance: 0

Remaining authorized but unissued: 1,900,000

 

			
	(continued...)
	shall equal the quotient
obtained by dividing (x) the Number of Outstanding Shares (as defined in the
Certificate of Designations) as of such date by (y) the Number of Outstanding
Shares as of the effective date of such amendment and (3) the liquidation
preference per share of the Series C Preferred Stock shall be $500,000 divided
by the Number of Underlying Shares as of the effective date of such amendment.

 

 

SCHEDULE C

LITIGATION

List any exceptions to the representation and warranty in Section 2.2(l) of the Securities Purchase
Agreement.

	 	1.	 	On February 27, 2009, the Company’s former Chairman and Chief Executive Officer,
Maurice R. Greenberg, filed a securities action in the Southern District of New York
against AIG, Martin Sullivan, Steven Bensinger, Joseph Cassano, Stephen Bollenbach, George
Miles, Morris Offit, and Michael Sutton, asserting violations of Sections 10(b) and 20(a)
of the Exchange Act of 1934 and a state common law fraud claim. Plaintiff alleges he
acquired AIG stock from the AIG Deferred Compensation Profit Participation Plan at an
inflated price in reliance on defendants material misrepresentations concerning AIG’s
exposure to risk and the eventual losses in AIGFP’s credit default swap portfolio. A
parallel case has been filed in Panama by Starr International Company, Inc., but has not
yet been accepted by the Court.
	 
	 	2.	 	On March 12, 2009, Maurice R. Greenberg filed an answer with crossclaims and third
party claims in the shareholder derivative action pending in Delaware Chancery Court
termed, In re AIG Consolidated Derivative Litigation, Civ. A. No. 769-VCS (Del. Ch.). The
crossclaims and third party claims are asserted against certain current and former
directors and officers as well as certain entities that were involved in the issues
surrounding AIG’s 2005 regulatory settlements and restatement and allege that if Mr.
Greenberg is liable to AIG, these parties should also be held responsible. Mr. Greenberg
does not assert a claim against AIG.
	 
	 	3.	 	On March 20, 2009, a purported shareholder derivative complaint was filed in the
Supreme Court of New York County naming as defendants certain of the current directors of
AIG and the recipients of payments under the Employee Retention Plan. Plaintiffs assert
claims on behalf of nominal defendant AIG for breach of fiduciary duty and waste of
corporate assets against the directors, and for rescission and constructive trust against
the recipients of payments under the Employee Retention Plan.
	 
	 	4.	 	On March 26, 2009, a purported derivative and class action complaint was filed in the
United States District Court for the Central District of California purporting to assert
claims on behalf of nominal defendant AIG and its shareholders against certain current and
former officers and directors of AIG. The claims relate to losses suffered by AIG and its
shareholders as a result of the defendants’ exposure of AIG to risks related to the
subprime mortgage market in its credit default swap portfolio, and to Employee Retention
Plan payments. Plaintiffs also allege that defendants misrepresented and omitted material
facts during the alleged class period, December 8, 2000 to the present, relating to AIG’s
consolidated financial condition regarding the true size and scope and the nature of AIG’s
exposure to risk. The complaint alleges claims for breach of

 

 

	 	 	 	fiduciary duty, gross mismanagement, waste of corporate assets, unjust enrichment and
violations of Section 14(e) of the Exchange Act of 1934.

	 	5.	 	On April 1, 2009, Safeco Insurance Company of America and Ohio Casualty Insurance
Company filed a complaint in the United States District Court for the Northern District of
Illinois, on behalf of a purported class of all National Worker’s Compensation Reinsurance
Pool (“NWCRP”) participant members, against AIG and certain former AIG officers. The
factual allegations and legal theories in this complaint are substantially identical to the
complaint filed by the National Council on Compensation Insurance (“NCCI”) on behalf of all
NWCRP participant members, which was disclosed in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2008. The complaint alleges that it has been filed as an
alternative to NCCI’s complaint if the Court grants AIG’s motion to dismiss for lack of
subject matter jurisdiction.
	 
	 	6.	 	On April 1, 2009, a purported shareholder derivative complaint was filed in the
Superior Court for the State of California, Los Angeles County, asserting claims on behalf
of nominal defendant AIG against certain officers and directors of AIG. The complaint
asserts claims for waste of corporate assets, breach of fiduciary duty, abuse of control,
and unjust enrichment and constructive trust in connection with defendants’ approval of
bonuses and retention payments.
	 
	 	7.	 	The Company has received requests for information and/or subpoenas related to the
Company’s Employee Retention Plan from various state authorities including, but not limited
to, the Attorneys General of New York, New Jersey, and Connecticut, the Connecticut
Department of Consumer Protection, and the Connecticut state legislature.
	 
	 	8.	 	The Company has responded to numerous requests for information related to the use of
Troubled Asset Relief Program (“TARP”) funds, payments under the Company’s Financial
Products division Employee Retention Plan, and the financial crisis generally from various
Members and Committees of Congress and the Senate including, but not limited to,
Representatives Castle, Crowley, Cummings, Kaptur, Garrett, and Waxman; Senators Baucus,
Grassley, and Shelby; the House Committee on Oversight and Government Reform; the House
Committee on Financial Services Capital Markets Subcommittee; the Senate Banking Committee;
the Senate Committee on Finance; and the Senate Permanent Subcommittee on Investigations.
	 
	 	9.	 	The Company has responded to requests for information from the Government
Accountability Office, the Special Inspector General for the TARP, and the Department of
the Treasury.
	 
	 	10.	 	The Company continues to work with the Independent Consultant appointed by the
Securities and Exchange Commission in 2006 in connection with his ongoing reports and
monitoring of the Company’s financial reporting and regulatory, compliance, and legal
functions.

 

 

If none, please so indicate by checking the box: o.

 

 

SCHEDULE D

COMPLIANCE WITH LAWS

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

Please see items 1, 2, 4, 5, 7, 8 and 9 of Schedule C of the Securities Purchase Agreement:
Litigation.

If none, please so indicate by checking the box: o.

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

If none, please so indicate by checking the box: þ.

 

 

SCHEDULE E

REGULATORY AGREEMENTS

List any exceptions to the representation and warranty in Section 2.2(s) of the Securities Purchase
Agreement.

If none, please so indicate by checking the box: þ.

 

 

ANNEX A

FORM OF CERTIFICATE OF DESIGNATIONS 

[SEE ATTACHED]

 

 

CERTIFICATE OF DESIGNATIONS

OF

SERIES F FIXED RATE NON-CUMULATIVE PERPETUAL PREFERRED STOCK

OF

AMERICAN INTERNATIONAL GROUP, INC.

     American International Group, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (the “Company”), hereby certifies that the
following resolution was adopted by the Board of Directors of the Company (the “Board of
Directors”) as required by Section 151 of the General Corporation Law of the State of Delaware
at a meeting duly held on April 17, 2009.

     RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors in
accordance with the provisions of the Restated Certificate of Incorporation, as amended, the Board
of Directors hereby creates a series of serial preferred stock, par value $5.00 per share, of the
Company, and hereby states the designation and number of shares, and fixes the voting and other
powers, and the relative rights and preferences, and the qualifications, limitations and
restrictions thereof, as follows:

Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock:

     Part 1. Designation and Number of Shares. There is hereby created out of the
authorized and unissued shares of serial preferred stock of the Company a series of preferred stock
designated as the “Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock” (the “Series F
Preferred Stock”). The authorized number of shares of the Series F Preferred Stock shall be
300,000. Such number of shares may be decreased by resolution of the Board of Directors, subject
to the terms and conditions hereof; provided that no decrease shall reduce the number of shares of
the Series F Preferred Stock to a number less than the number of shares then outstanding.

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

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

     (a) “Common Stock” means the common stock, par value $2.50 per share, of the Company.

     (b) “Convertible Preferred Stock” means the Series C Perpetual, Convertible,
Participating Preferred Stock of the Company. The Convertible Preferred Stock shall be Parity

1

 

Stock; provided that the Convertible Preferred Stock shall be Junior Stock following the
effectiveness of an amendment to the Charter to allow the Series F Preferred Stock and any other
series of preferred stock of the Company issued to the United States Department of the Treasury to
rank senior to the Convertible Preferred Stock as to dividend rights and/or rights upon the
liquidation, dissolution and winding up of the Company (the “Amendment”).

     (c) “Dividend Payment Date” means February 1, May 1, August 1 and November 1 of each
year.

     (d) “Junior Stock” means the Common Stock, the Convertible Preferred Stock (following
the Amendment) and any class or series of stock of the Company (i) initially issued to any person
other than the United States Department of the Treasury or (ii) initially issued to the United
States Department of the Treasury and the terms of which expressly provide that it ranks junior to
the Series F Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution
or winding up of the Company.

     (e) “Liquidation Amount” shall initially mean $0 per share of the Series F Preferred
Stock outstanding on April 17, 2009 and shall be increased each time a Drawdown Amount (as defined
in the Series F Preferred Stock Purchase Agreement) is paid to the Company by an amount per share
equal to the Drawdown Amount so paid to the Company divided by the number of shares of Series F
Preferred Stock outstanding at the time of such payment, and such increase per share shall be duly
reflected in the Schedule of Increases of the Series F Preferred Stock Liquidation Preference
attached to the Series F Preferred Share Certificate (as defined in the Standard Provisions in
Annex A attached hereto).

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

     (g) “Series E Preferred Stock” means the Series E Fixed Rate Non-Cumulative Perpetual
Preferred Stock of the Company.

     (h) “Signing Date” means April 17, 2009.

     Part. 4. Certain Voting Matters. Whether the vote or consent of the holders of a
plurality, majority or other portion of the shares of the Series F Preferred Stock and any Voting
Parity Stock has been cast or given on any matter on which the holders of shares of the Series F
Preferred Stock and any Voting Parity Stock are entitled to vote or consent together as a class
shall be determined by the Company by reference to the specified liquidation amount of the shares
of the Series F Preferred Stock voted or with respect to which a consent has been received as if
the Company were liquidated on the record date for such vote or consent, if any, or, in the absence
of a record date, on the date for such vote or consent. For purposes of determining the voting
rights of the holders of the Series F Preferred Stock under Section 7 of the Standard Provisions
forming part of this Certificate of Designations, each holder will be entitled to one

2

 

vote for each $10,000 of liquidation preference to which such holder’s shares are entitled;
provided that notwithstanding the foregoing in no event shall a holder be entitled to less than one
vote per share of Series F Preferred Stock issued to such holder.

[Remainder of Page Intentionally Left Blank]

3

 

     IN WITNESS WHEREOF, the Company has caused this Certificate of Designations to be signed on
its behalf by its                                          and attested by its Secretary this 17th day of April,
2009.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 
	ATTEST:
	 	 
	 
	 	 
	 

Name:

	 	 
	Title: Secretary
	 	 

4

 

ANNEX A

STANDARD PROVISIONS

     Section 1. General Matters. Each share of the Series F Preferred Stock shall be
identical in all respects to every other share of the Series F Preferred Stock. The Series F
Preferred Stock shall be perpetual, subject to the provisions of Section 5 of these Standard
Provisions that form a part of the Certificate of Designations. The Series F Preferred Stock (a)
shall rank senior to the Junior Stock in respect of the right to receive dividends and the right to
receive payments out of the assets of the Company upon voluntary or involuntary liquidation,
dissolution or winding up of the Company and (b) shall be of equal rank with Parity Stock as to the
right to receive dividends and the right to receive payments out of the assets of the Company upon
voluntary or involuntary liquidation, dissolution or winding up of the Company.

     Section 2. Standard Definitions. As used herein with respect to the Series F Preferred
Stock:

     (a) “Applicable Dividend Rate” means 10% per annum.

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

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

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

     (e) “Certificate of Designations” means the Certificate of Designations or comparable
instrument relating to the Series F Preferred Stock, of which these Standard Provisions form a
part, as it may be amended from time to time.

     (f) “Charter” means the Company’s Restated Certificate of Incorporation, as amended.

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

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

     (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time.

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

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

A-1

 

     (l) “Preferred Stock” means any and all series of serial preferred stock of the
Company, including the Series F Preferred Stock.

     (m) “Series D Preferred Stock” means the Series D Fixed Rate Cumulative Perpetual
Preferred Stock of the Company.

     (n) “Series F Preferred Stock Purchase Agreement” means the Securities Purchase
Agreement, dated April 17, 2009, between the Company and the UST, as it may be amended or modified
from time to time.

     (o) “Share Dilution Amount” has the meaning set forth in Section 3(b).

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

     (q) “Termination Date” has the meaning set forth in the Series F Preferred Stock
Purchase Agreement.

     (r) “Transfer Agent” has the meaning set forth in Section 13.

     (s) “Trust” means the AIG Credit Facility Trust.

     (t) “UST” means the United States Department of the Treasury.

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

     Section 3. Dividends.

     (a) Rate. Holders of the Series F Preferred Stock shall be entitled to receive, on
each share of the Series F Preferred Stock if, as and when declared by the Board of Directors or
any duly authorized committee of the Board of Directors, but only out of assets legally available
therefor, non-cumulative cash dividends with respect to each Dividend Period (as defined below) at
a rate per annum equal to the Applicable Dividend Rate on the applicable Liquidation Amount per
share of the Series F Preferred Stock. Such dividends shall be payable quarterly in arrears, but
only if, as and when declared by the Board of Directors or any duly authorized committee of the
Board of Directors, on each Dividend Payment Date, commencing with the first such Dividend Payment
Date to occur at least 20 calendar days after the Original Issue Date. In the event that any
Dividend Payment Date would otherwise fall on a day that is not a Business Day, the dividend
payment due on that date will be postponed to the next day that is a Business Day and no additional
dividends shall be payable nor shall interest accrue on the amount payable as a result of that
postponement. The period from and including any Dividend Record Date to, but excluding, the next
Dividend Record Date is a “Dividend Period” (it being understood that the Dividend Period
will commence on the immediately preceding Dividend Record Date relating to the immediately
preceding Dividend Payment Date or, if no dividend has been paid for the prior

A-2

 

Dividend Period, the 15th calendar day immediately prior to the immediately preceding Dividend
Payment Date); provided that the initial Dividend Period shall be the period from and including the
Original Issue Date to, but excluding, the next Dividend Record Date.

     Dividends that are payable on Series F Preferred Stock in respect of any Dividend Period shall
be computed on a daily basis on the Liquidation Amount that is in effect on such day on the basis
of a 360-day year consisting of twelve 30-day months, at a rate per annum equal to the Applicable
Dividend Rate.

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

     Dividends on the Series F Preferred Stock shall not be cumulative. Holders of Series F
Preferred Stock shall not be entitled to receive any dividends not declared by the Board of
Directors or any duly authorized committee of the Board of Directors, and no interest, or sum of
money in lieu of interest, shall be payable in respect of any dividend not so declared. If the
Board of Directors does not declare a dividend on the Series F Preferred Stock to be payable in
respect of any Dividend Period before the related Dividend Payment Date, such dividend will not
accrue and the Company will have no obligation to pay a dividend for that Dividend Period on the
Dividend Payment Date or at any future time, whether or not dividends on the Series F Preferred
Stock are declared for any future Dividend Period. Holders of the Series F Preferred Stock shall
not be entitled to any dividends, whether payable in cash, securities or other property, other than
dividends (if any) declared and payable on the Series F Preferred Stock as specified in this
Section 3 (subject to the other provisions of the Certificate of Designations).

     (b) Priority of Dividends. So long as any share of the Series F Preferred Stock
remains outstanding, no dividend or distribution shall be declared or paid on the Common Stock or
any other shares of Junior Stock (other than dividends payable solely in shares of Common Stock) or
Parity Stock, subject to the immediately following paragraph in the case of Parity Stock, and no
Common Stock, Junior Stock or Parity Stock shall be, directly or indirectly, purchased, redeemed or
otherwise acquired for consideration by the Company or any of its subsidiaries unless dividends for
the latest completed Dividend Period on all outstanding shares of the Series F Preferred Stock have
been or are contemporaneously declared and paid in full (or have been declared and a sum sufficient
for the payment thereof has been set aside for the benefit of the holders of shares of the Series F
Preferred Stock on the applicable record date). The foregoing limitation shall not apply to (i) a
dividend payable on any Junior Stock in shares of any other Junior Stock, or to the acquisition of
shares of any Junior Stock in exchange for, or through application of the proceeds of the sale of,
shares of any other Junior Stock; (ii) redemptions, purchases or other acquisitions of shares of
Common Stock or other Junior Stock in connection with the administration of any employee benefit
plan in the ordinary course of business (including purchases to offset the Share Dilution Amount
(as defined below) pursuant to a

A-3

 

publicly announced repurchase plan) and consistent with past practice; provided that any
purchases to offset the Share Dilution Amount shall in no event exceed the Share Dilution Amount;
(iii) any dividends or distributions of rights or Junior Stock in connection with a stockholders’
rights plan or any redemption or repurchase of rights pursuant to any stockholders’ rights plan;
(iv) the acquisition by the Company or any of its subsidiaries of record ownership in Junior Stock
or Parity Stock for the beneficial ownership of any other persons (other than the Company or any of
its subsidiaries), including as trustees or custodians; (v) the conversion of the Convertible
Preferred Stock into Common Stock; (vi) the exchange or conversion of Junior Stock (other than the
Convertible Preferred Stock) for or into other Junior Stock or of Parity Stock for or into other
Parity Stock (with the same or lesser aggregate liquidation amount) or Junior Stock, in each case,
solely to the extent required pursuant to binding contractual agreements entered into prior to the
Signing Date or any subsequent agreement for the accelerated exercise, settlement or exchange
thereof for Common Stock; and (vii) any purchase, redemption or other acquisition with the written
consent of the UST. “Share Dilution Amount” means the increase in the number of diluted
shares outstanding (determined in accordance with generally accepted accounting principles in the
United States, and as measured from the date of the Company’s consolidated financial statements
most recently filed with the Securities and Exchange Commission prior to the Original Issue Date)
resulting from the grant, vesting or exercise of equity-based compensation to employees and
equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or
similar transaction.

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

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

A-4

 

such payment, and holders of the Series F Preferred Stock shall not be entitled to participate
in any such dividends.

     Section 4. Liquidation, Dissolution or Winding Up. In the event of any voluntary or
involuntary liquidation, dissolution or winding up of the affairs of the Company, then, before any
distribution or payment shall be made to the holders of Junior Stock, the holders of the Series F
Preferred Stock and any shares of Preferred Stock ranking on a parity therewith as to liquidation
shall be entitled to be paid in full the respective amounts of the liquidation preferences thereof,
which in the case of the Series F Preferred Stock shall be the Liquidation Amount, plus an amount
equal to all dividends, if any, that have been declared but not paid prior to such distribution or
payment date (but without any accumulation in respect of dividends that have not been declared
prior to such distribution or payment date). If such payment shall have been made in full to the
holders of the Series F Preferred Stock and any series of Preferred Stock ranking on a parity
therewith as to liquidation, the remaining assets and funds of the Company shall be distributed
among the holders of Junior Stock, according to their respective rights and preferences and in each
case according to their respective shares. If, upon any liquidation, dissolution or winding up of
the affairs of the Company, the amounts so payable are not paid in full to the holders of all
outstanding shares of the Series F Preferred Stock and any series of Preferred Stock ranking on a
parity therewith as to liquidation, the holders of the Series F Preferred Stock and any series of
Preferred Stock ranking on a parity therewith as to liquidation shall share ratably in any
distribution of assets in proportion to the full amounts to which they would otherwise be
respectively entitled. Neither the consolidation or merger of the Company, nor the sale, lease or
conveyance of all or a part of its assets, shall be deemed a liquidation, dissolution or winding up
of the affairs of the Company within the meaning of the foregoing provisions of this Section 4.

     Section 5. Redemption.

     (a) Optional Redemption. Except as provided in this Section 5(a), the Series F
Preferred Stock shall not be redeemable. At any time that (i) the Trust (or any successor entity
established for the sole benefit of the United States Treasury) “beneficially owns” less than 30%
of the aggregate voting power of the Company’s voting securities and (ii) no holder of the Series F
Preferred Stock controls the Company, the Company may redeem, in whole or in part, at any time and
from time to time, out of funds legally available therefor, the shares of the Series F Preferred
Stock at the time outstanding, upon notice given as provided in Section 5(c) below, the Series F
Preferred Stock in whole or in part at a redemption price per share equal to 100% of its
Liquidation Amount, plus, for purposes of the redemption price only and except as set forth in the
last sentence of the next paragraph, an amount equal to all declared but unpaid dividends for the
then current Dividend Period to such redemption date (regardless of whether any dividends are
actually declared for that Dividend Period). “Control” for purposes of this Section 5(a)
means the power to direct the management and policies of the Company, directly or indirectly,
whether through the ownership of voting securities, by contract, by the power to control the Board
of Directors or otherwise. “Beneficially owns” for purposes of this Section 5(a) is defined
in Rule 13d-3 under the Securities Exchange Act of 1934, as amended to the Signing Date. For the
avoidance of doubt, while there is Board of Directors control (or the potential to gain Board of
Directors control as a result of existing contractual rights) by any holder of the Series F
Preferred Stock, the Company may not redeem any of the Series F Preferred Stock.

A-5

 

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

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

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

     (d) Partial Redemption. In case of any redemption of part of the shares of the Series
F Preferred Stock at the time outstanding, the shares to be redeemed shall be selected either pro
rata or in such other manner as the Board of Directors or a duly authorized committee thereof may
determine to be fair and equitable. Subject to the provisions hereof, the Board of Directors or a
duly authorized committee thereof shall have full power and authority to prescribe the terms and
conditions upon which shares of the Series F Preferred Stock shall be redeemed from time to time.
If fewer than all the shares represented by any certificate are redeemed at any time, a new
certificate shall be issued representing the unredeemed shares without charge to the holder
thereof; provided that at any time after the Termination Date, each holder may elect, upon
surrender of a certificate representing any unredeemed shares of Series F Preferred Stock, to have
the Company deliver or cause to be delivered to such holder a notice that shares of Series F
Preferred Stock equal in number to the unredeemed shares of Series F Preferred Stock

A-6

 

represented by the certificate so surrendered have been registered on the books and records of
the Company.

     (e) Effectiveness of Redemption. If notice of redemption has been duly given and if on
or before the redemption date specified in the notice all funds necessary for the redemption have
been deposited by the Company, in trust for the pro rata benefit of the holders of the shares
called for redemption, with a bank or trust company doing business in the Borough of Manhattan, The
City of New York, and having a capital and surplus of at least $500 million and selected by the
Board of Directors, so as to be and continue to be available solely therefor, then, notwithstanding
that any certificate (if the shares of Series F Preferred Stock are not in book-entry form) for any
share so called for redemption has not been surrendered for cancellation, on and after the
redemption date dividends shall cease to accrue on all shares so called for redemption, all shares
so called for redemption shall no longer be deemed outstanding and all rights with respect to such
shares shall forthwith on such redemption date cease and terminate, except only the right of the
holders thereof to receive the amount payable on such redemption from such bank or trust company,
without interest. Any funds unclaimed at the end of three years from the redemption date shall, to
the extent permitted by law, be released to the Company, after which time the holders of the shares
so called for redemption shall look only to the Company for payment of the redemption price of such
shares.

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

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

     Section 7. Voting Rights.

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

     (b) Series F Preferred Stock Directors. Whenever, at any time or times, dividends
payable on the shares of the Series F Preferred Stock have not been paid for an aggregate of four
quarterly Dividend Periods or more, whether or not consecutive (including for this purpose the
period during which the Series D Preferred Stock was outstanding), the authorized number of
directors of the Company shall automatically be increased to accommodate the number of
the Preferred Directors specified below and the holders of the Series F Preferred Stock shall have
the right, with holders of shares of any one or more other classes or series of Voting Parity Stock
outstanding at the time, voting together as a class, to elect the greater of two directors and a
number of directors (rounded upward) equal to 20% of the total number of directors of the Company
after giving effect to such election (hereinafter the “Preferred Directors” and each a
“Preferred Director”) to fill such newly created directorships at the Company’s next annual
meeting of stockholders (or at a special meeting called for that purpose prior to such next annual
meeting) and at each subsequent annual meeting of stockholders until dividends payable on all

A-7

 

outstanding shares of the Series F Preferred Stock have been declared and paid in full for
four consecutive quarterly Dividend Periods, at which time such right shall terminate with respect
to the Series F Preferred Stock, except as herein or by law expressly provided, subject to
revesting in the event of each and every subsequent payment failure of the character above
mentioned; provided that it shall be a qualification for election for any Preferred Director that
the election of such Preferred Director shall not cause the Company to violate any corporate
governance requirements of any securities exchange or other trading facility on which securities of
the Company may then be listed or traded that listed or traded companies must have a majority of
independent directors. Upon any termination of the right of the holders of shares of the Series F
Preferred Stock and Voting Parity Stock as a class to vote for directors as provided above, the
Preferred Directors shall cease to be qualified as directors, the term of office of all Preferred
Directors then in office shall terminate immediately and the authorized number of directors shall
be reduced by the number of the Preferred Directors elected pursuant hereto. Any Preferred
Director may be removed at any time, with or without cause, and any vacancy created thereby may be
filled, only by the affirmative vote of the holders of a majority of the shares of the Series F
Preferred Stock at the time outstanding voting separately as a class together with the holders of
shares of Voting Parity Stock, to the extent the voting rights of such holders described above are
then exercisable. If the office of any Preferred Director becomes vacant for any reason other than
removal from office as aforesaid, the remaining Preferred Director may choose a successor who shall
hold office for the unexpired term in respect of which such vacancy occurred.

     (c) Class Voting Rights as to Particular Matters. So long as any shares of the Series
F Preferred Stock are outstanding, in addition to any other vote or consent of stockholders
required by law or by the Charter, the vote or consent of the holders of at least 66 2/3% of the
shares of the Series F Preferred Stock at the time outstanding, voting as a separate class, given
in person or by proxy, either in writing without a meeting or by vote at any meeting called for the
purpose, shall be necessary for effecting or validating:

     (i) Authorization of Senior or Pari Passu Stock . Any amendment or alteration
of the Certificate of Designations for the Series F Preferred Stock or the Charter
(including any amendment to the Charter effectuated by a Certificate of Designations) to
authorize or create or increase the authorized amount of, or any issuance of, any shares of,
or any securities convertible into or exchangeable or exercisable for shares of, any class
or series of capital stock of the Company ranking senior to or pari passu with the Series F
Preferred Stock with respect to either or both the payment of dividends and/or the
distribution of assets on any liquidation, dissolution or winding up of the Company (the
“Senior or Pari Passu Securities”); provided, however, that the voting rights
provided in this Section 7(c)(i) shall not apply to any amendment or alteration of the
Charter (including any amendment to the Charter effectuated by a Certificate of
Designations) to authorize or create or increase the authorized amount of, or any issuance
of, any Senior or Pari Passu Securities initially issued to the UST;

     (ii) Amendment of the Series F Preferred Stock. Any amendment, alteration or
repeal of any provision of the Certificate of Designations for the Series F Preferred Stock
or the Charter (including, unless no vote on such merger or consolidation is required by
Section 7(c)(iii) below, any amendment, alteration or repeal by means of a

A-8

 

merger, consolidation or otherwise) so as to adversely affect the rights, preferences,
privileges or voting powers of the Series F Preferred Stock; or

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

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

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

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

A-9

 

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

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

     Section 10. No Preemptive Rights. No holder of the Series F Preferred Stock shall be
entitled as a matter of right to subscribe for or purchase, or have any preemptive right with
respect to, any part of any new or additional issue of stock of any class whatsoever, or of
securities convertible into any stock of any class whatsoever, whether now or hereafter authorized
and whether issued for cash or other consideration or by way of dividend.

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

     Section 12. Form.

     (a) The Series F Preferred Stock shall be initially issued in the form of one or more
certificates in definitive, fully registered form with, until such time as otherwise determined by
the Company, the restricted shares legend (the “Restricted Shares Legend”), as set forth on
the form of the Series F Preferred Stock attached hereto as Exhibit A (each, a “Series F
Preferred Share Certificate”), which is hereby incorporated in and expressly made a part of
this Certificate of Designations. The Series F Preferred Share Certificate may have notations,
legends or endorsements required by law, stock exchange rules, agreements to which the Company is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company).

     (b) An Officer shall sign the Series F Preferred Share Certificate for the Company, in
accordance with the Company’s Bylaws and applicable law, by manual or facsimile signature.
“Officer” means the Chairman, any Vice President, the Treasurer or the Secretary of the
Company.

     (c) If an Officer whose signature is on a Series F Preferred Share Certificate no longer holds
that office at the time of the issuance of such Series F Preferred Share Certificate, such Series F
Preferred Share Certificate shall be valid nevertheless.

A-10

 

     (d) A Series F Preferred Share Certificate shall not be valid or obligatory until an
authorized signatory of the Transfer Agent manually countersigns the Series F Preferred Share
Certificate. The signature shall be conclusive evidence that such Series F Preferred Share
Certificate has been authenticated under this Certificate of Designations. Each Series F Preferred
Share Certificate shall be dated the date of its authentication.

     Other than upon original issuance, all transfers and exchanges of the Series F Preferred Stock
shall be made by direct registration on the books and records of the Company.

     Section 13. Transfer Agent And Registrar. The duly appointed Transfer Agent and
Registrar for the Series F Preferred Stock shall be Wells Fargo Bank, N.A. (the “Transfer
Agent”). The Company may, in its sole discretion, remove the Transfer Agent in accordance with
the agreement between the Company and the Transfer Agent; provided that the Company shall appoint a
successor transfer agent who shall accept such appointment prior to the effectiveness of such
removal; provided further that such successor transfer agent shall be the Transfer Agent for
purposes of this Certificate of Designations and the Series F Preferred Stock Purchase Agreement.

     Section 14. Other Rights. The shares of the Series F Preferred Stock shall not have
any rights, preferences, privileges or voting powers or relative, participating, optional or other
special rights, or qualifications, limitations or restrictions thereof, other than as set forth
herein or in the Charter or as provided by applicable law.

A-11

 

EXHIBIT A

FORM OF SERIES F FIXED RATE NON-CUMULATIVE

PERPETUAL PREFERRED STOCK

($0 INITIAL LIQUIDATION PREFERENCE)

			
	 	 	 
	NUMBER
	 	SHARES
	[___]
	 	[___]

CUSIP [_______]

AMERICAN INTERNATIONAL GROUP, INC.

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

THIS CERTIFICATE IS TRANSFERABLE

IN THE CITY OF SOUTH ST. PAUL, MINNESOTA

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF (A) AT ANY TIME ON OR PRIOR TO THE TERMINATION DATE AND
(B) AT ANY TIME AFTER THE TERMINATION DATE EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO
IS IN EFFECT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR SUCH LAWS. EACH PURCHASER OF THE
SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. ANY TRANSFEREE OF
THE SECURITIES REPRESENTED BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (2) AGREES THAT
IT WILL NOT OFFER, SELL OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY THIS INSTRUMENT EXCEPT
(A) PURSUANT TO A REGISTRATION STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR
SO LONG AS THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE
SECURITIES REPRESENTED BY THIS INSTRUMENT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND.

E-1

 

     This is to certify that the UNITED STATES DEPARTMENT OF THE TREASURY is the owner of THREE
HUNDRED THOUSAND (300,000) fully paid and non-assessable shares of Series F Fixed Rate
Non-Cumulative Perpetual Preferred Stock, $5.00 par value, initial liquidation preference $0 per
share (the “Stock”), of the American International Group, Inc. (the “Company”), transferable on the
books of the Company by the holder hereof in person or by duly authorized attorney upon surrender
of this certificate properly endorsed. Capitalized terms used herein but not defined shall have the
respective meanings given them in the Certificate of Designations for the Stock dated April 17,
2009.

     This certificate is not valid or obligatory for any purpose unless countersigned and
registered by the Transfer Agent and Registrar.

     Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized
officers.

Dated: April 17, 2009

	 	 	 	 
	 

	 	 	
	Name:

	 	Name:	
	Title:

	 	Title:	
	 
	 	 	
	 

	 	Countersigned and Registered

 

as Transfer Agent and Registrar	,

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signature

E-2

 

AMERICAN INTERNATIONAL GROUP, INC.

     AMERICAN INTERNATIONAL GROUP, INC. (the “Company”) will furnish, without charge to each
stockholder who so requests, a copy of the certificate of designations establishing the powers,
preferences and relative, participating, optional or other special rights of each class of stock of
the Company or series thereof and the qualifications, limitations or restrictions of such
preferences and/or rights applicable to each class of stock of the Company or series thereof. Such
information may be obtained by a request in writing to the Secretary of the Company at its
principal place of business.

     This certificate and the share or shares represented hereby are issued and shall be held
subject to all of the provisions of the Company’s Restated Certificate of Incorporation, as
amended, and the Certificate of Designations of the Series F Fixed Rate Non-Cumulative Perpetual
Preferred Stock (Initial Liquidation Preference $0 per share) (copies of which are on file with the
Transfer Agent), to all of which the holder, by acceptance hereof, assents.

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

	 	 	 	 	 
	TEN COM -

	 	as tenants in common
	 	UNIF GIFT MIN ACT-                      Custodian                     
	TEN ENT -

	 	as tenants by the entireties
	 	                                   (Minor)                         (Cust)
	JT TEN -

	 	as joint tenants with
right of survivorship and not as tenants in common
	 	under Uniform Gifts to Minors Act
                                        
	 

	 	
	 	(State)

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

 

     For value received,                                          hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

     IDENTIFYING NUMBER OF ASSIGNEE

 

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE

	 
	 

	 

	 

	 

	 
            shares
of the capital stock represented by the within certificate, and do(es) hereby irrevocably
constitute and appoint                                         , Attorney to transfer the said stock on the books of
the within named Company with
full power of substitution in the premises.

E-3

 

Dated                                         

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 

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

SIGNATURE GUARANTEED

	 	 	 
	 

NOTICE: The signature(s) should be
guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings
and loan associations, and credit unions
with membership in an approved signature
guarantee medallion program), pursuant to
Rule 17Ad-15 under the Securities
Exchange Act of 1934.

	 	 

E-4

 

SCHEDULE OF INCREASES

OF THE SERIES F PREFERRED STOCK LIQUIDATION PREFERENCE

The following increases to the liquidation preference of the Series F Preferred Stock have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate liquidation	 	 	 	 	 	 	 
	 	 	Amount of increase in	 	 	preference following	 	 	Liquidation	 	 	Signature of	 
	Date of increase	 	liquidation preference	 	 	such increase	 	 	preference per share	 	 	authorized signatory	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

E-5

 

ANNEX B

FORM OF COMMENCEMENT OPINION

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

     (b) The Series F Preferred Stock has been duly authorized and, when issued and delivered
pursuant to the Agreement, the Series F Preferred Stock will be validly issued, fully paid and
nonassessable, and will not be issued in violation of any preemptive rights.

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

     (d) The shares of Common Stock issuable upon exercise of the Warrant have been duly authorized
and reserved for issuance upon exercise of the Warrant and when so issued in accordance with the
terms of the Warrant will be validly issued, fully paid and nonassessable.

     (e) The Company has the corporate power and authority to execute and deliver the Agreement and
the Warrant and to perform its obligations thereunder (including the issuance of the Series F
Preferred Stock, the Warrant and the Warrant Shares).

     (f) The execution, delivery and performance by the Company of the Agreement and the Warrant
and the consummation of the transactions contemplated thereby have been duly authorized by all
necessary corporate action on the part of the Company and its stockholders (other than (i) the vote
of the stockholders described in Section 3.1(b) of the Agreement and (ii) the corporate actions
required to consummate the transactions contemplated by Section 3.9), and no further approval or
authorization is required on the part of the Company, other than the vote of the stockholders
described in Section 3.1(b) of the Agreement and the corporate actions required to consummate the
transactions contemplated by Section 3.9.

     (g) The Agreement is a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as the same may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the creditors’ rights and general
equitable principles, regardless of whether such enforceability is considered in a proceeding at
law or in equity; provided, however, such counsel need express no opinion with respect to Section
3.1(b), Section 3.9 or Section 4.5(g) or the severability provisions of the Agreement insofar as
Section 3.1(b), Section 3.9 or Section 4.5(g) is concerned.

 

 

ANNEX C

FORM OF DRAWDOWN OPINION

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

     (b) The Series F Preferred Stock has been duly authorized and validly issued and is fully paid
and nonassessable; provided, however, that no opinion as to subsequent increases in the liquidation
preference of the Series F Preferred Stock is expressed hereby.

     (c) The Series F Preferred Stock has not been issued in violation of any preemptive rights
provided for in the Company’s Restated Certificate of Incorporation, as amended to the date of this
opinion, or under the laws of the state of the Company’s incorporation.

 

 

ANNEX D

FORM OF WARRANT 

[SEE ATTACHED]

 

 

WARRANT TO PURCHASE COMMON STOCK

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

WARRANT

to purchase

3,000

Shares of Common Stock

of AMERICAN INTERNATIONAL GROUP, INC.

Issue Date: April 17, 2009

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

     “Affiliate” has the meaning ascribed to it in the Purchase Agreement.

     “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the
Company and one by the Original Warrantholder, shall mutually agree upon the determinations then
the subject of appraisal. Each party shall deliver a notice to the other appointing its appraiser
within 15 days after the Appraisal Procedure is invoked. If within 30 days after appointment of the
two appraisers they are unable to agree upon the amount in question, a third independent appraiser
shall be chosen within 10 days thereafter by the mutual consent of such first two appraisers. The
decision of the third appraiser so appointed and chosen shall be given within 30 days after the
selection of such third appraiser. If three appraisers shall be appointed and the determination of
one appraiser is disparate from the middle determination by more than twice the amount by which the
other determination is disparate from the middle determination, then the determination of such
appraiser shall be excluded, the remaining two determinations shall be averaged and such average
shall be binding and conclusive upon the Company and the Original Warrantholder; otherwise, the

 

average of all three determinations shall be binding upon the Company and the Original
Warrantholder. The costs of conducting any Appraisal Procedure shall be borne by the Company.

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

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

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

     “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and
all shares, interests, participations or other equivalents (however designated) of capital or
capital stock of such Person and (B) with respect to any Person that is not a corporation or
company, any and all partnership or other equity interests of such Person.

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

     “Charter Amendment” means the amendments to the Company’s Restated Certificate of
Incorporation to reduce the par value of the Common Stock to $0.000001 per share and increase the
number of authorized shares of Common Stock to 19 billion.

     “Common Stock” has the meaning ascribed to it in the Purchase Agreement.

     “Company” means the American International Group, Inc.

     “conversion” has the meaning set forth in Section 13(B).

     “convertible securities” has the meaning set forth in Section 13(B).

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

     “Exercise Price” means, with respect to this Warrant, $0.000001 per share.

     “Expiration Time” has the meaning set forth in Section 3.

     “Fair Market Value” means, with respect to any security or other property, the fair market
value of such security or other property as determined by the

2

 

Board of Directors, acting in good faith or, with respect to Section 14, as determined by the
Original Warrantholder acting in good faith. For so long as the Original Warrantholder holds this
Warrant or any portion thereof, it may object in writing to the Board of Director’s calculation of
fair market value within 10 days of receipt of written notice thereof. If the Original
Warrantholder and the Company are unable to agree on fair market value during the 10-day period
following the delivery of the Original Warrantholder’s objection, the Appraisal Procedure may be
invoked by either party to determine Fair Market Value by delivering written notification thereof
not later than the 30th day after delivery of the Original Warrantholder’s objection.

     “Governmental Entities” has the meaning ascribed to it in the Purchase Agreement.

     “Initial Number” has the meaning set forth in Section 13(B).

     “Issue Date” means April 17, 2009.

     “Market Price” means, with respect to a particular security, on any given day, the last
reported sale price regular way or, in case no such reported sale takes place on such day, the
average of the last closing bid and ask prices regular way, in either case on the principal
national securities exchange on which the applicable securities are listed or admitted to trading,
or if not listed or admitted to trading on any national securities exchange, the average of the
closing bid and ask prices as furnished by two members of the Financial Industry Regulatory
Authority, Inc. selected from time to time by the Company for that purpose. “Market Price” shall be
determined without reference to after hours or extended hours trading. If such security is not
listed and traded in a manner that the quotations referred to above are available for the period
required hereunder, the Market Price per share of Common Stock shall be deemed to be (i) in the
event that any portion of the Warrant is held by the Original Warrantholder, the fair market value
per share of such security as determined in good faith by the Original Warrantholder or (ii) in all
other circumstances, the fair market value per share of such security as determined in good faith
by the Board of Directors in reliance on an opinion of a nationally recognized independent
investment banking corporation retained by the Company for this purpose and certified in a
resolution to the Warrantholder. For the purposes of determining the Market Price of the Common
Stock on the “trading day” preceding, on or following the occurrence of an event, (i) that trading
day shall be deemed to commence immediately after the regular scheduled closing time of trading on
the New York Stock Exchange or, if trading is closed at an earlier time, such earlier time and (ii)
that trading day shall end at the next regular scheduled closing time, or if trading is closed at
an earlier time, such earlier time (for the avoidance of doubt, and as an example, if the Market
Price is to be determined as of the last trading day preceding a specified event and the closing
time of trading on a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on
that day, the Market Price would be determined by reference to such 4:00 p.m. closing price).

3

 

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

     “Permitted Transactions” has the meaning set forth in Section 13(B).

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

     “Per Share Fair Market Value” has the meaning set forth in Section 13(C).

     “Preferred Shares” means the perpetual preferred stock issued to the Original Warrantholder on
the Issue Date pursuant to the Purchase Agreement.

     “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any
subsidiary thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or
14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available
to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash,
shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness
of the Company or any other Person or any other property (including, without limitation, shares of
Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination
thereof, effected while this Warrant is outstanding. The “Effective Date” of a Pro Rata Repurchase
shall mean the date of acceptance of shares for purchase or exchange by the Company under any
tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any
Pro Rata Repurchase that is not a tender or exchange offer.

     “Purchase Agreement” means the Securities Purchase Agreement, dated as of April 17, 2009, as
amended from time to time, between the Company and the United States Department of the Treasury,
including all annexes and schedules thereto.

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

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

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

4

 

     “Series C Preferred Stock” has the meaning ascribed to it in the Purchase Agreement.

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

     “Special Reserve” has the meaning set forth in Section 3.

     “trading day” means (A) if the shares of Common Stock are not traded on any national or
regional securities exchange or association or over-the-counter market, a business day or (B) if
the shares of Common Stock are traded on any national or regional securities exchange or
association or over-the-counter market, a business day on which such relevant exchange or quotation
system is scheduled to be open for business and on which the shares of Common Stock (i) are not
suspended from trading on any national or regional securities exchange or association or
over-the-counter market for any period or periods aggregating one half hour or longer; and (ii)
have traded at least once on the national or regional securities exchange or association or
over-the-counter market that is the primary market for the trading of the shares of Common Stock.

     “U.S. GAAP” means United States generally accepted accounting principles.

     “Warrantholder” has the meaning set forth in Section 2.

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

     2. Number of Shares; Exercise Price. This certifies that, for value received, the
United States Department of the Treasury or its permitted assigns (the “Warrantholder”) is
entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the
Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up
to an aggregate of 3,000 fully paid and nonassessable shares of Common Stock, at a purchase price
per share of Common Stock equal to the Exercise Price. The number of shares of Common Stock (the
“Shares”) and the Exercise Price are subject to adjustment as provided herein, and all references
to “Common Stock,” “Shares” and “Exercise Price” herein shall be deemed to include any such
adjustment or series of adjustments.

     3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Company on the date hereof, but in no event later
than 5:00 p.m., New York City time on the tenth anniversary of the Issue Date (the “Expiration
Time”), by (A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly completed
and executed on behalf of the Warrantholder, at the principal executive office of the Company
located at 70 Pine Street, New

5

 

York, New York 10270 Attention: Chief Financial Officer (or such other office or agency of the
Company in the United States as it may designate by notice in writing to the Warrantholder at the
address of the Warrantholder appearing on the books of the Company), and (B) payment of the
Exercise Price for the Shares thereby purchased:

     (i) by having the Company withhold, from the shares of Common Stock that would otherwise be
delivered to the Warrantholder upon such exercise, shares of Common Stock issuable upon exercise of
the Warrant equal in value to the aggregate Exercise Price as to which this Warrant is so exercised
based on the Market Price of the Common Stock on the trading day on which this Warrant is exercised
and the Notice of Exercise is delivered to the Company pursuant to this Section 3, or

     (ii) with the consent of both the Company and the Warrantholder, by tendering in cash, by
certified or cashier’s check payable to the order of the Company, or by wire transfer of
immediately available funds to an account designated by the Company.

     If and so long as the par value per share of the Common Stock of the Company is $2.50, upon
exercise of this Warrant there shall be transferred to the Common Stock capital account from the
special reserve (the “Special Reserve”) created by the Board of Directors upon issuance of shares
of the Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock of the Company, an amount equal
to $2.499999 per share of Common Stock issued upon such exercise, it being understood that if the
par value of the Common Stock shall be reduced to $0.000001 per share, the Special Reserve will no
longer exist and no such transfer shall be required.

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

     4. Issuance of Shares; Authorization; Listing. Book-entries representing Shares issued
upon exercise of this Warrant will be promptly recorded in such name or names as the Warrantholder
may designate. The Company hereby represents and warrants that any Shares issued upon the exercise
of this Warrant in accordance with the provisions of Section 3 will be duly and validly authorized
and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than
liens or charges created by the Warrantholder, income and franchise taxes incurred in connection
with the exercise of the

6

 

Warrant or taxes in respect of any transfer occurring contemporaneously therewith). The
Company agrees that the Shares so issued will be deemed to have been issued to the Warrantholder as
of the close of business on the date on which this Warrant and payment of the Exercise Price are
delivered to the Company in accordance with the terms of this Warrant, notwithstanding that the
stock transfer books of the Company may then be closed. The Company will at all times reserve and
keep available, out of its authorized but unissued Common Stock, solely for the purpose of
providing for the exercise of this Warrant, the aggregate number of shares of Common Stock then
issuable upon exercise of this Warrant at any time. The Company will (A) procure, at its sole
expense, the listing of the Shares issuable upon exercise of this Warrant at any time, subject to
issuance or notice of issuance, on all principal stock exchanges on which the Common Stock is then
listed or traded and (B) maintain such listings of such Shares at all times after issuance. The
Company will use reasonable best efforts to ensure that the Shares may be issued without violation
of any applicable law or regulation or of any requirement of any securities exchange on which the
Shares are listed or traded.

     5. No Fractional Shares or Scrip. No fractional Shares or scrip representing
fractional Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional
Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled
to receive a cash payment equal to the Market Price of the Common Stock on the last trading day
preceding the date of exercise less the pro-rated Exercise Price for such fractional share.

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

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

     8. Transfer/Assignment.

     (A) Subject to compliance with clause (B) of this Section 8, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company by the registered
holder hereof in person or by duly authorized attorney, and a new warrant shall be made and
delivered by the Company, of the same tenor and date as this Warrant but registered in the name of
one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of
the Company described in Section 3. All expenses (other than stock transfer taxes) and other
charges payable in connection with the preparation,

7

 

execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the
Company.

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

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

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

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

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

8

 

such Warrantholder a written statement that it has complied with such requirements.

     13. Adjustments and Other Rights. The Exercise Price and the number of Shares issuable
upon exercise of this Warrant shall be subject to adjustment from time to time as follows;
provided, that if more than one subsection of this Section 13 is applicable to a single event, the
subsection shall be applied that produces the largest adjustment and no single event shall cause an
adjustment under more than one subsection of this Section 13 so as to result in duplication:

     (A) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company
shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number
of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record
date for such dividend or distribution or the effective date of such subdivision, combination or
reclassification shall be proportionately adjusted so that the Warrantholder after such date shall
be entitled to purchase the number of shares of Common Stock which such holder would have owned or
been entitled to receive in respect of the shares of Common Stock subject to this Warrant after
such date had this Warrant been exercised immediately prior to such date. In such event, the
Exercise Price in effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision, combination or reclassification shall be adjusted to the number
obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this
Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record
or effective date, as the case may be, for the dividend, distribution, subdivision, combination or
reclassification giving rise to this adjustment by (y) the new number of Shares issuable upon
exercise of the Warrant determined pursuant to the immediately preceding sentence.

     (B) Certain Issuances of Common Shares or Convertible Securities. Until the earlier of
(i) the date on which the Original Warrantholder no longer holds this Warrant or any portion
thereof and (ii) the third anniversary of the Issue Date, if the Company shall issue shares of
Common Stock (or rights or warrants or other securities exercisable or convertible into or
exchangeable (collectively, a “conversion”) for shares of Common Stock) (collectively, “convertible
securities”) (other than in Permitted Transactions (as defined below) or a transaction to which
subsection (A) of this Section 13 is applicable) without consideration or at a consideration per
share (or having a conversion price per share) that is less than 90% of the Market Price on the
last trading day preceding the date of the agreement on pricing such shares (or such convertible
securities) then, in such event:

(A) the number of Shares issuable upon the exercise of this Warrant immediately prior to
the date of the agreement on pricing of such shares

9

 

(or of such convertible securities) (the “Initial Number”) shall be increased to the
number obtained by multiplying the Initial Number by a fraction (A) the numerator of which
shall be the sum of (x) the number of shares of Common Stock of the Company outstanding on
such date and (y) the number of additional shares of Common Stock issued (or into which
convertible securities may be exercised or convert) and (B) the denominator of which shall
be the sum of (I) the number of shares of Common Stock outstanding on such date and (II)
the number of shares of Common Stock which the aggregate consideration receivable by the
Company for the total number of shares of Common Stock so issued (or into which
convertible securities may be exercised or convert) would purchase at the Market Price on
the last trading day preceding the date of the agreement on pricing such shares (or such
convertible securities); and

(B) the Exercise Price payable upon exercise of the Warrant shall be adjusted by
multiplying such Exercise Price in effect immediately prior to the date of the agreement
on pricing of such shares (or of such convertible securities) by a fraction, the numerator
of which shall be the number of shares of Common Stock issuable upon exercise of this
Warrant prior to such date and the denominator of which shall be the number of shares of
Common Stock issuable upon exercise of this Warrant immediately after the adjustment
described in clause (A) above.

     For purposes of the foregoing, the aggregate consideration receivable by the Company in
connection with the issuance of such shares of Common Stock or convertible securities shall be
deemed to be equal to the sum of the net offering price (including the Fair Market Value of any
non-cash consideration and after deduction of any related expenses payable to third parties) of all
such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of
any such convertible securities into shares of Common Stock; and “Permitted Transactions” shall
mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related
assets, (ii) in connection with employee benefit plans and compensation related arrangements in the
ordinary course and consistent with past practice approved by the Board of Directors, (iii) in
connection with a public or broadly marketed offering and sale of Common Stock or convertible
securities for cash conducted by the Company or its affiliates pursuant to registration under the
Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by
comparable financial institutions and (iv) in connection with the exercise of preemptive rights on
terms existing as of the Issue Date. Any adjustment made pursuant to this Section 13(B) shall
become effective immediately upon the date of such issuance. For the avoidance of doubt, neither
the Charter Amendment nor any subsequent conversion of the Series C Preferred Stock into Common
Stock shall give rise to an adjustment to the terms of the Warrant under this Section 13.

     (C) Other Distributions. In case the Company shall fix a record date for the making of
a distribution to all holders of shares of its Common Stock of

10

 

securities, evidences of indebtedness, assets, cash, rights or warrants (excluding dividends
of its Common Stock and other dividends or distributions referred to in Section 13(A)), in each
such case, the Exercise Price in effect prior to such record date shall be reduced immediately
thereafter to the price determined by multiplying the Exercise Price in effect immediately prior to
the reduction by the quotient of (x) the Market Price of the Common Stock on the last trading day
preceding the first date on which the Common Stock trades regular way on the principal national
securities exchange on which the Common Stock is listed or admitted to trading without the right to
receive such distribution, minus the amount of cash and/or the Fair Market Value of the securities,
evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share
of Common Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided
by (y) such Market Price on such date specified in clause (x); such adjustment shall be made
successively whenever such a record date is fixed. In such event, the number of Shares issuable
upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the
product of (1) the number of Shares issuable upon the exercise of this Warrant before such
adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise
to this adjustment by (y) the new Exercise Price determined in accordance with the immediately
preceding sentence. In the event that such distribution is not so made, the Exercise Price and the
number of Shares issuable upon exercise of this Warrant then in effect shall be readjusted,
effective as of the date when the Board of Directors determines not to distribute such shares,
evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise
Price that would then be in effect and the number of Shares that would then be issuable upon
exercise of this Warrant if such record date had not been fixed.

     (D) Certain Repurchases of Common Stock. In case the Company effects a Pro Rata
Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by
multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata
Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of
shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market
Price of a share of Common Stock on the trading day immediately preceding the first public
announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata
Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the
denominator shall be the product of (i) the number of shares of Common Stock outstanding
immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so
repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately
preceding the first public announcement by the Company or any of its Affiliates of the intent to
effect such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon
the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product
of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and
(2) the Exercise Price in effect immediately prior to the Pro Rata

11

 

Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in
accordance with the immediately preceding sentence. For the avoidance of doubt, no increase to the
Exercise Price or decrease in the number of Shares issuable upon exercise of this Warrant shall be
made pursuant to this Section 13(D).

     (E) Business Combinations. In case of any Business Combination or reclassification of
Common Stock (other than a reclassification of Common Stock referred to in Section 13(A)), the
Warrantholder’s right to receive Shares upon exercise of this Warrant shall be converted into the
right to exercise this Warrant to acquire the number of shares of stock or other securities or
property (including cash) which the Common Stock issuable (at the time of such Business Combination
or reclassification) upon exercise of this Warrant immediately prior to such Business Combination
or reclassification would have been entitled to receive upon consummation of such Business
Combination or reclassification; and in any such case, if necessary, the provisions set forth
herein with respect to the rights and interests thereafter of the Warrantholder shall be
appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the
Warrantholder’s right to exercise this Warrant in exchange for any shares of stock or other
securities or property pursuant to this paragraph. In determining the kind and amount of stock,
securities or the property receivable upon exercise of this Warrant following the consummation of
such Business Combination, if the holders of Common Stock have the right to elect the kind or
amount of consideration receivable upon consummation of such Business Combination, then the
consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed to
be the types and amounts of consideration received by the majority of all holders of the shares of
Common Stock that affirmatively make an election (or of all such holders if none make an election).

     (F) Rounding of Calculations; Minimum Adjustments. All calculations under this Section
13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth
(1/100th) of a share, as the case may be. Any provision of this Section 13 to the contrary
notwithstanding, no adjustment in the Exercise Price or the number of Shares into which this
Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01 or
one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an
adjustment with respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward,
shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

     (G) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any
case in which the provisions of this Section 13 shall require that an adjustment shall become
effective immediately after a record date for an event, the Company may defer until the occurrence
of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and
before the occurrence of such event the additional shares of Common Stock issuable upon

12

 

such exercise by reason of the adjustment required by such event over and above the shares of
Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to
such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided,
however, that the Company upon request shall deliver to such Warrantholder a due bill or other
appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and
such cash, upon the occurrence of the event requiring such adjustment.

     (H) Other Events. For so long as the Original Warrantholder holds this Warrant or any
portion thereof, if any event occurs as to which the provisions of this Section 13 are not strictly
applicable or, if strictly applicable, would not, in the good faith judgment of the Board of
Directors of the Company, fairly and adequately protect the purchase rights of the Warrants in
accordance with the essential intent and principles of such provisions, then the Board of Directors
shall make such adjustments in the application of such provisions, in accordance with such
essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the
Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price and the number
of Shares into which this Warrant is exercisable shall not be adjusted in the event of a change in
the par value of the Common Stock (other than pursuant to the Charter Amendment) or a change in the
jurisdiction of incorporation of the Company.

     (I) Statement Regarding Adjustments. Whenever the Exercise Price or the number of
Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13, the
Company shall forthwith file at the principal office of the Company a statement showing in
reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in
effect and the number of Shares into which this Warrant shall be exercisable after such adjustment,
and the Company shall also cause a copy of such statement to be sent by mail, first class postage
prepaid, to each Warrantholder at the address appearing in the Company’s records.

     (J) Notice of Adjustment Event. In the event that the Company shall propose to take
any action of the type described in this Section 13 (but only if the action of the type described
in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares into
which this Warrant is exercisable or a change in the type of securities or property to be delivered
upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner
set forth in Section 13(I), which notice shall specify the record date, if any, with respect to any
such action and the approximate date on which such action is to take place. Such notice shall also
set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on
the Exercise Price and the number, kind or class of shares or other securities or property which
shall be deliverable upon exercise of this Warrant. In the case of any action which would require
the fixing of a record date, such notice shall be given at least 10 days prior to the date so
fixed, and in case of all other action, such notice shall be given at least 15 days

13

 

prior to the taking of such proposed action. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of any such action.

     (K) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to
the taking of any action which would require an adjustment pursuant to this Section 13, the Company
shall take any action which may be necessary, including obtaining regulatory, New York Stock
Exchange or stockholder approvals or exemptions, in order that the Company may thereafter validly
and legally issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder
is entitled to receive upon exercise of this Warrant pursuant to this Section 13.

     (L) Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made
successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price
made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock,
then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par
value of the Common Stock.

     14. Exchange. At any time following the date on which the shares of Common Stock of
the Company are no longer listed or admitted to trading on a national securities exchange (other
than in connection with any Business Combination), the Original Warrantholder may cause the Company
to exchange all or a portion of this Warrant for an economic interest (to be determined by the
Original Warrantholder after consultation with the Company) of the Company classified as permanent
equity under U.S. GAAP having a value equal to the Fair Market Value of the portion of the Warrant
so exchanged. The Original Warrantholder shall calculate any Fair Market Value required to be
calculated pursuant to this Section 14, which shall not be subject to the Appraisal Procedure.

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

     16. Governing Law. This Warrant, and the rights and obligations of the parties
hereunder, shall be governed by, and construed and interpreted in accordance with, United States
federal law and not the law of any State. To the extent that a court looks to the laws of any State
to determine or define the United States federal law, it is the intention of the parties hereto
that such court shall look only to the laws of the State of New York without regard to the rules of
conflicts of laws. Each of the Company and the Warrantholder agrees (a) to submit to the exclusive
jurisdiction and

14

 

venue of the United States District Court for the District of Columbia for any action, suit or
proceeding arising out of or relating to this Warrant or the transactions contemplated hereby, and
(b) that notice may be served upon the Company at the address in Section 20 below and upon the
Warrantholder at the address for the Warrantholder set forth in the registry maintained by the
Company pursuant to Section 9 hereof. To the extent permitted by applicable law, each of the
Company and the Warrantholder hereby unconditionally waives trial by jury in any legal action or
proceeding relating to the Warrant or the transactions contemplated hereby or thereby.

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

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

     19. Prohibited Actions. The Company agrees that it will not take any action which
would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of
shares of Common Stock issuable after such action upon exercise of this Warrant, together with all
shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the
exercise of all outstanding options, warrants, conversion and other rights, would exceed the total
number of shares of Common Stock then authorized by its Charter.

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

If to the Company:

American International Group, Inc.

70 Pine Street

New York, New York 10270

Attention: Chief Financial Officer:

                   Secretary:

                   Treasurer:

with a copy to:

Sullivan & Cromwell LLP

125 Broad Street

New York, NY 10004

15

 

Attention
    Robert W. Reeder, III

                     Michael M. Wiseman

If to the Warrantholder:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, DC 20220

Attention: Chief Counsel, Office of Financial Stability

Telecopy: (202) 927-9225

Email: ofschiefcounselnotices@do.treas.gov

with a copy to:

Davis Polk & Wardwell

450 Lexington Avenue

New York, NY 10017

Attention:     John Brandow

     21. Entire Agreement. This Warrant contains the entire agreement between the parties
with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements
or undertakings with respect thereto.

16

 

[Form of Notice of Exercise]

Date:                                         

TO:       American International Group, Inc.

RE:       Election to Purchase Common Stock

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

Number of Shares of Common Stock                                         

Method of Payment of Exercise Price (note if cashless exercise pursuant to Section 3(i) of the
Warrant or cash exercise pursuant to Section 3(ii) of the Warrant, with consent of the Company and
the Warrantholder)                                         

Aggregate Exercise Price:                                         

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Holder:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

17

 

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

Dated: April 17, 2009

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	AMERICAN INTERNATIONAL GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Attest:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Warrant]

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