Document:

exhibit10-31.htm

    Exhibit
10.31

     

     

    December
31, 2009

    

     

    Mr.
Ronald K. Migita

    Chairman
of the Board

    President
& Chief Executive Officer

    Central
Pacific Financial Corporation

    Central
Pacific Bank

    

    RE:  Your
Compensation For the Period January 1, 2010 – December 31, 2010

    

    Dear Mr.
Migita,

    

    The
purpose of this letter is to confirm your compensation for serving as Chairman
of the Board, President, and Chief Executive Officer for Central Pacific
Financial Corp. (“CPF”) and Central
Pacific Bank (“CPB”) for the
period from January 1, 2010 through December 31, 2010 (the “Compensation
Period”),

    

    
      	
              1.  

            	
              For
      serving as Chairman of the Board of Directors (“Board”) of CPF
      and CPB, you will receive an annual retainer fee of $100,000 (CPF will pay
      $40,000 (40%) and CPB will pay $60,000 (60%)), prorated and paid on a
      monthly basis during the Compensation Period.  This is a 50%
      reduction off your original retainer fee of $200,000 and a 37.5% reduction
      off your current retainer fee of
$160,000.

            

    

    

    
      	
              2.  

            	
              You
      will not receive any board or committee fees for attending any meetings of
      the CPF and CPB boards or any of their respective
    committees.

            

    

    

    
      	
              3.  

            	
              For
      serving as President and Chief Executive Officer of CPF and CPB, you will
      receive an annual cash salary of $500,000 (CPF will pay $120,000 (24%),
      CPB will pay $375,000 (75%)) and Central Pacific HomeLoans, Inc. will pay
      $5,000 (1%)), prorated and paid on a semi-monthly basis during the
      Compensation Period.

            

    

    

    
      	
              4.  

            	
              As
      an employee of CPF and CPB, you are entitled to receive all standard
      employee benefits and will also receive unrestricted vacation as long as
      it does not impede your ability to execute your duties and
      responsibilities.

            

    

    

    
      	
              5.  

            	
              As
      an executive officer of CPF and CPB, you are entitled to receive
      perquisites that are extended to the highest level of executives of CPF
      and/or CPB, to presently include an automobile allowance of $1,000 per
      month and payment of Waialae Country Club membership
  dues.

            

    

    

    
      	
              6.  

            	
              You
      will not be entitled to any short or long term incentive plan payments for
      2010 performance.

            

    

    

    While the
above is the compensation arrangement approved by the Board of Directors, please
understand that CPF and CPB reserve the right to make any changes and amendments
to the agreement or to withhold or recover compensation (on either a retroactive
or prospective basis, and whether or not earned/accrued or yet to be
earned/accrued) as necessary or required to comply with all applicable laws and
regulations and restrictions, to include without limitation, any regulatory
orders, mandates, directives or prohibitions, and the Emergency Economic
Stabilization Act of 2008 (“EESA”), the American Recovery and Reinvestment Act
of 2009 (“ARRA”), and regulations implementing EESA and ARRA issued by the U.S.
Department of Treasury with respect to executive compensation or otherwise, and
further, neither CPF and CPB shall be required to make any payment if such
payment requires any regulatory approval.  In addition, CPF and CPB
shall have a right to recover (“clawback”) compensation if payment of such
compensation is due to materially inaccurate financial statements.

    

    If the
foregoing is agreeable with you, please sign and return the original of this
letter to the undersigned.

    

    Sincerely,

    

    Central
Pacific Financial Corp.

    Central
Pacific Bank

    

    

    

    By /s/ Paul
Kosaka                                                               

    Paul
Kosasa

    Chair,
Compensation Committee

    Board of
Directors

    

    

    

    Accepted
and agreed by:

    

    

    /s/ Ronald K.
Migita                                                                     December 31,
2009
Ronald K.
Migita                                                                           Dateexhibit10-32.htm

    Exhibit
10.32

    

    

     
 

     
 

     
 

     

     
 

    

     
 

     

    Federal
Reserve Banks

    Operating
Circular No. 10

     
 

    LENDING

     
 

    Effective
October 15, 2006

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FEDERAL
RESERVE BANKS

    OPERATING
CIRCULAR NO. 10

    Effective
October 15, 2006

     

      LENDING

     
 

    

    

    1.0           SCOPE................................................................................................................1

    

    2.0           DEFINED
TERMS..............................................................................................1

    

    3.0           ADVANCES........................................................................................................5

    

    4.0           INTEREST...........................................................................................................5

    

    5.0           REPAYMENT
OF
ADVANCE..........................................................................5

    

    6.0           GRANT
OF SECURITY
INTEREST...............................................................6

    

    7.0           COLLATERAL...................................................................................................6

    

    8.0           MAINTENANCE
OF LENDING
DOCUMENTS............................................9

     

    9.0           REPRESENTATIONS
AND WARRANTIES..............................................10

    

    10.0        
COVENANTS...................................................................................................11

    

    11.0        
WAIVER OF IMMUNITY; SUBMISSION TO JURISDICTION.............13

    

    12.0        
REMEDIES UPON
DEFAULT........................................................................14

    

    13.0         INDEMNIFICATION.......................................................................................16

     

    14.0         MISCELLANEOUS.........................................................................................16

    

    15.0         AMENDMENT..................................................................................................17

    

    16.0         NOTICE.............................................................................................................17

    

    17.0         TERMINATION...............................................................................................18

    

    18.0         GOVERNING
LAW.........................................................................................19

    

    19.0         WAIVER
OF JURY
TRIAL............................................................................19

    

    20.0         STATUS
OF PREVIOUS LENDING AGREEMENT..................................19

     
 

    APPENDIX
1: FINANCING STATEMENT COLLATERAL DESCRIPTION

     

    APPENDIX
2: TERMS OF CONTROL AGREEMENT

    
APPENDIX
3: APPLICATION PACKAGE FOR U.S. BORROWERS

    FORM
OF LETTER OF AGREEMENT

    FORM
OF CERTIFICATE

    FORM
OF AUTHORIZING RESOLUTIONS FOR BORROWERS

    FORM
OF OFFICIAL OC-10 AUTHORIZATION LIST

     

    APPENDIX
4: APPLICATION PACKAGE FOR BRANCHES OR AGENCIES OF NON-U.S.
BORROWERS

    FORM
OF LETTER OF AGREEMENT

    FORM
OF CERTIFICATE

    FORM
OF AUTHORIZING RESOLUTIONS FOR BORROWERS

    FORM
OF OFFICIAL OC-10 AUTHORIZATION LIST

    FORM
OF OPINION OF FOREIGN OUTSIDE COUNSEL

    FORM
OF OPINION OF UNITED STATES OUTSIDE COUNSEL

    

    APPENDIX
5: Ancillary Agreements

    FORM
OF AGREEMENT FOR THIRD PARTY CUSTODIAN TO HOLD COLLATERAL

     

    FORM
OF CORRESPONDENT CREDIT AND PAYMENT AGREEMENT

    

    EXHIBIT
1: LETTER OF AGREEMENT TO CORRESPONDENT CREDIT AND PAYMENT
AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CREDIT
AND SECURITY TERMS

    
1.0           SCOPE

     

    
      	
               
      

            	
              1.1

            	
              This
      Operating Circular is issued by each Reserve Bank and sets forth the terms
      under which an entity may, in accordance with the Federal Reserve Act and
      regulations promulgated thereunder by the Board of Governors of the
      Federal Reserve System, obtain Advances from, incur Obligations to, or
      pledge Collateral to a Federal Reserve
Bank.

            

    

    
      	
               
      

            	 

    

    2.0           DEFINED
TERMS

     

    
      	
               
      

            	
              2.1

            	
              The
      capitalized terms used hereafter in this Operating Circular have the
      meanings defined below:

            

    

     

    Account means a master account
at a Reserve Bank, as defined in the Operating Circular No. 1 issued by such
Reserve Bank.

     

    Advance means an extension of
credit to the Borrower (not including a discount of paper) pursuant to
Regulation A, including any renewal or extension thereof.

     

    Advance Repayment Amount means
the amount of an Advance, plus all accrued and unpaid interest
thereon.

     

    Adverse Claim has the meaning
set forth in Section 9.1(d).

     

    Application Package means the
Application Package, substantially in the form of Appendix 3 or 4, as
appropriate, which the Borrower submitted in connection with its agreement to
this Operating Circular.

     

    Bank means the Federal Reserve
Bank in whose district the Borrower is located (determined in accordance with 12
C.F.R. Section 204.3(b)), or such other Reserve Bank with which the Borrower has
entered into a borrowing relationship under this Operating
Circular.

     

    Board of Governors means the
Board of Governors of the Federal Reserve System.

    
Borrower means an entity that
incurs an Obligation to the Bank.

     

    Borrower-in-Custody or BIC
Arrangement means an arrangement whereby the Bank authorizes a Borrower,
or an affiliate of the Borrower, to retain possession of the Collateral, as
described in Section 7 of this Operating Circular.

     

    Business Day means any day the
Bank is open for conducting all or substantially all its banking
functions.

     

    Certificate means the
certificate, substantially in the form set forth in the appropriate Application
Package, provided to the Bank by the Borrower.

     

    Collateral means:

     

    
      	
               
      

            	
              (i)

            	
              all
      the Borrower’s rights, title, and interest in property (wherever located,
      now owned or hereafter acquired), including, but not limited to, accounts,
      chattel paper, inventory, equipment, instruments, investment property,
      general intangibles, documents, deposit accounts, commercial tort claims
      and, real property that is (a) identified on a Collateral Schedule, (b)
      identified on the books or records of a Reserve Bank as pledged to, or
      subject to a security interest in favor of, the Bank or any other Reserve
      Bank or (c) in the possession or control of, or maintained with, the Bank
      or any other Reserve Bank including, but not limited to, investment
      property, but excluding any investment property in any Unrestricted
      Securities Account maintained at any Reserve Bank that the Borrower may
      not encumber under applicable law;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              all
      documents, books and records, including programs, tapes, and related
      electronic data processing software, evidencing or relating to any or all
      of the foregoing; and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              to
      the extent not otherwise included, all proceeds and products of any and
      all of the foregoing and all supporting obligations given by any person
      with respect to any of the foregoing, including but not limited to
      interest, dividends, insurance, rents and
  refunds.

            

    

     

    Collateral Schedule means the
written, electronic or other statement(s) listing Collateral in effect at any
time.  Each statement of Collateral shall be in the form required by
the Bank and shall identify the items of Collateral with the specificity
required by the Bank.  The removal of an item from a statement of
Collateral will not be effective and will not affect the Bank's security
interest in the item unless such removal is made in accordance with this
Operating Circular and the Bank’s procedures, including prior Bank approval or
authorization.

     

    Event of Default means any of
the following:

     

    
      	
               
      

            	
              (i)

            	
              the
      Borrower fails to repay or satisfy any Obligation when
  due;

            

    

     

    
      
        	
                 
      

              	
                (ii)

              	
                the
      Borrower fails to perform or observe any of its obligations or agreements
      under the Lending Agreement or under any other instrument or agreement
      delivered or executed in connection with the Lending Agreement or under
      any other agreement with the Bank or another Reserve
  Bank;

              

      

       

    

    
      	
               
      

            	
              (iii)

            	
              any
      representation or warranty made or deemed to be made by the Borrower under
      or in connection with the Lending Agreement, or that is contained in any
      certificate, document or financial or other statement delivered by it or
      in connection with the Lending Agreement, is inaccurate in any material
      respect on or as of the date made or deemed
  made;

            

    

     

    
      
        	
                 
      

              	
                (iv)

              	
                
                  the
      Insolvency of the Borrower;

                

              

      

       

    

    
      	
               
      

            	
              (v)

            	
              the
      Lending Agreement or any other agreement delivered or executed in
      connection with the Lending Agreement ceases, for any reason, to be in
      full force and effect, or any person so asserts or any security interest
      or lien created hereby ceases to be enforceable or have the same effect
      and priority purported to be created
hereby;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      creation of an encumbrance upon Collateral, or placement of a levy,
      judicial seizure of, or an attachment upon
  Collateral;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              whenever
      the Bank deems itself insecure with respect to the financial condition of
      the Borrower or the Borrower’s ability to perform its
      Obligations.

            

    

     

    FRB Lending Documents has the
meaning set forth in Section 8 of this Operating Circular.

     

    Indebtedness means the total
of the Borrower’s overdrafts (whether intraday or overnight) in its Account(s)
and any penalties and charges thereon.

     

    Insolvency means:

     

    
      
        	
                 
      

              	
                 (i)

              	
                the
      condition of insolvency;

              

      

      

      
        	
                 
      

              	
                 (ii)

              	
                that
      a proceeding relating to bankruptcy, insolvency, reorganization or relief
      of debtors, seeking to adjudicate an entity bankrupt or insolvent or
      seeking reorganization, adjustment, dissolution, liquidation or other
      relief with respect to the Borrower or the Borrower's debt is
      commenced;

              

      

       

    

    
      	
               
      

            	
               (iii)

            	
              that
      an assignment for the benefit of the Borrower’s creditors
      occurs;

            

    

    

    
      	
               
      

            	
               (iv)

            	
              that
      a receiver, custodian, conservator, or the like is appointed for the
      Borrower or for any of its United States or foreign branches or
      agencies;

            

    

    

    
      	
               
      

            	
               (v)

            	
              that
      the Borrower has been closed by order of its supervisory authorities, or a
      public officer has been appointed to take over such
  entity;

            

    

    
    

    
    

     

    
      
        	
                 
      

              	
                 (vi)

              	
                that
      the Borrower ceases or refuses to make payments in the ordinary course of
      business, or admits in a record its inability to pay its debt as they
      become due;

              

      

       

    

    
      	
               
      

            	
               (vii)

            	
              the
      Borrower’s business is suspended, or any party has presented or filed a
      petition for winding-up or liquidating the Borrower;
  or

            

    

     

    
      
        	
                 
      

              	
                 (viii)

              	
                any
      other circumstances that evince the Borrower's inability to pay its debts
      when due.

              

      

       

    

    Lending Agreement means this
Operating Circular, any Collateral Schedule, each document in the Application
Package executed or furnished to the Bank by the Borrower, and any other
agreement or document executed by the Borrower in connection with this Operating
Circular, in each case as the same may be amended, supplemented or otherwise
modified from time to time.

     

    Letter of Agreement means the
Letter of Agreement, substantially in the form found in Appendix 3 or 4, as
appropriate, pursuant to which the Borrower agrees to be bound by the terms of
this Operating Circular.

     

    Obligation, whether now
existing or hereafter incurred, means:

     

    
      	
               
      

            	
              (i)

            	
              Advance
      Repayment Amounts;

            

    

     

    
    

    
      	
               
      

            	
              (ii)

            	
              Indebtedness;

            

    

     

    
    

    
      	
               
      

            	
              (iii)

            	
              any
      other liabilities of the Borrower to the Bank or any other Reserve Bank,
      including without limitation, any service fees, whether due or to become
      due; and

            

    

     

    
    

    
      	
               
      

            	
              (iv)

            	
              any
      expense the Bank or its designee(s) may incur
  to:

            

    

     

    
    

    
      	
               
      

            	
              a.

            	
              obtain,
      preserve and/or enforce the Lending Agreement or the Bank's security
      interest in Collateral and the Borrower’s Obligations under the Lending
      Agreement,

            

    

     

    
      
        	
                 
      

              	
                b.

              	
                collect
      any or all of the foregoing, or

              

      

       

      	
               
      

            	
              c.

            	
              assemble,
      transport, maintain or preserve Collateral (including, without limitation,
      taxes, assessments, insurance premiums, repairs, reasonable attorneys’
      fees, rent, transportation, storage costs, and expenses of
      sale).

            

    

     

    Regulation A means the Board
of Governors' Regulation A, 12 C.F.R. part 201, as amended and supplemented from
time to time.

     

    Reserve Bank means any one of
the Federal Reserve Banks (including the Bank).

     

    UCC means the Uniform
Commercial Code.

     

    Unrestricted Securities
Account has the meaning set forth in Operating Circular No.
7.

     

    The
following terms are used herein as defined in Articles 8 and 9 of the
UCC:  account, chattel paper, control, deposit account, documents,
equipment, financial assets, financing statement, general intangibles,
instruments, inventory, investment property, record, securities account and
securities intermediary.

    

    3.0           ADVANCES*

    

    
      	
               
      

            	
              3.1

            	
              A
      request for an Advance shall be made to the Bank in a form and time
      acceptable to the Bank.  An Advance must be secured by
      Collateral acceptable to the Bank.  Upon the Bank's request, the
      Borrower shall submit a written application for an Advance.  The
      Bank may also require the Borrower to execute a promissory note and/or
      additional relevant agreements or documents at any time with respect to an
      Advance.

            

    

     

    
      	
               
      

            	
               3.2

            	
              The
      Bank's making of an Advance is subject to the terms of the Federal Reserve
      Act as implemented by Regulation A.

            

    

     

    
      	
               
      

            	
               3.3

            	
              The
      Bank’s approval of a request for an Advance shall be evidenced by, and the
      Advance shall be deemed made at the time of, the Bank’s record of the
      credit of the amount of the Advance to an Account agreed upon by the
      Borrower and the Bank.

            

    

     

    4.0           INTEREST

     

    
      	
               
      

            	
              4.1

            	
              The
      interest rate applicable to an Advance shall be the rate, as from time to
      time established by the Bank subject to the determination of the Board of
      Governors, that applies to the particular credit program described under
      Regulation A under which the Bank made the Advance.  Interest on
      an Advance shall accrue from the day the Advance is credited to the
      Account and shall be payable at the applicable rate in effect on that day,
      except that if the interest rate changes while an Advance is outstanding,
      the new rate shall apply as of the day on which the rate change is
      effective.  Interest shall be computed on the basis of 365 days
      in a year.

               

            

    

    
      	
               
      

            	
               4.2

            	
              If
      all or any portion of an Advance Repayment Amount is not paid when due
      (whether by acceleration or otherwise), interest on the unpaid portion of
      the Advance Repayment Amount shall be calculated at a rate 500 basis
      points higher than the applicable rate then in effect until the unpaid
      Advance Repayment Amount is paid in
full.

            

    

    

    5.0           REPAYMENT
OF ADVANCE

     

    
      	
               
      

            	
              5.1

            	
              The
      Borrower promises to pay an Advance Repayment Amount when due in actually
      and finally collected funds.  An Advance Repayment Amount is
      immediately due and payable

            

    

     

    
      	
               
      

            	
              (a)

            	
              on
      demand;

            

    

     

    
    

    
      	
               
      

            	
              (b)

            	
              without
      any demand, notice or other action:

            

    

     
 

    
      
        	
                 
      

              	
                 (i)

              	
                on
      the due date and time specified by the Bank in writing (provided that if
      such date falls on a day that is not a Business Day, the due date shall be
      extended to the next Business Day).  If no due date and time is
      specified, then an Advance Repayment Amount is due 24 hours after the
      Advance was made (provided that if such time falls on a day that is not a
      Business Day, the time shall be extended to such time on the next Business
      Day); or

              

      

       

    

    
      	
               
      

            	
               (ii)

            	
              upon
      the occurrence of any Event of Default described in clause (iv), (v) or
      (vii) of the definition of such
term; or

            

    

     

    
      	
               
      

            	
              (c)

            	
              at
      the Bank’s option, upon the occurrence of any other Event of Default;
      or

            

    

     

    
    

    
      	
            	
              (d)

            	
              at
      the Bank's option, if the Borrower, in whole or in part, is acquired,
      merged, dissolved, or nationalized, or sells or otherwise disposes of
      substantially all of its assets, or if the Borrower is taken over in any
      other way by any other person or entity.

            

       

    

    
      	
               
      

            	
              5.2

            	
              Operating
      Circular No. 1 issued by the Reserve Bank maintaining the Account where
      Indebtedness is incurred governs when such Indebtedness is due and
      payable; provided, however, that if an Advance Repayment Amount becomes
      due under Sections 5.1(a), (b)(ii), (c) or (d), all other Obligations
      shall become due and payable immediately, without any demand, notice, or
      other action.

               

            

    

    
      	
               
      

            	
              5.3

            	
              The
      Borrower waives any right to presentment, notice of dishonor, protest, and
      any other notice of any kind except as expressly provided for
      herein.

               

            

    

    
      	
               
      

            	
              5.4

            	
              The
      Borrower may prepay an Advance Repayment Amount, in whole or in part,
      without penalty.

               

            

    

    
      	
               
      

            	
              5.5

            	
              The
      Bank or the appropriate Reserve Bank will debit the Borrower’s Account for
      the Advance Repayment Amount and all other Obligations when
      due.  If the Borrower does not have an Account, the Borrower
      must make arrangements satisfactory to the Bank for paying the Advance
      Repayment Amount prior to requesting any Advance, such as making payment
      through a correspondent.

            

    

    

    6.0           GRANT
OF SECURITY INTEREST

    

    For value
received and in consideration of the Bank permitting the Borrower to obtain
Advances or incur Indebtedness, the Borrower hereby transfers and assigns to the
Bank and grants to the Bank for itself and as agent for each other Reserve Bank
to which an Obligation is or becomes owing, a continuing security interest in
and lien on the Collateral as collateral security for the timely and complete
payment and performance when due (whether at stated maturity, by acceleration or
otherwise) of all Obligations.

    

    7.0           COLLATERAL

     
 

    
      	
               
      

            	
              7.1

            	
              The
      Borrower shall ensure that the Collateral meets the requirements as the
      Bank may from time to time prescribe and shall deliver, hold, store or
      otherwise maintain Collateral on such terms and conditions as the Bank may
      from time to time prescribe.  Borrower must keep all Collateral
      Schedules current and updated in accordance with the Bank's
      instructions.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              7.2

            	
              The
      Bank may at any time request the Borrower to replace any item of
      Collateral or to grant a lien and security interest in additional assets
      of a type and in an amount acceptable to the Bank, and the Borrower shall
      promptly do so.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              7.3

            	
              Unless
      otherwise specified by the Bank in writing, the Borrower shall promptly
      withdraw from the Collateral
Schedule:

            

    

     

    
      	
               
      

            	
              (a)

            	
              any
      Collateral that has a payment of principal or interest past due, in whole
      or in part, for more than 30 days (or 60 days past due for mortgage notes,
      and other types of consumer debt, including student
  loans);

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (b)

            	
              any
      Collateral that has been paid in full by the obligor;
  or

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (c)

            	
              any
      Collateral if the obligor on such Collateral becomes insolvent, or if a
      receiver, custodian, or the like is appointed for the
    obligor.

            

    

     

    Prior to
such withdrawal, however, the Borrower shall update any relevant Collateral
Schedule and pledge substitute Collateral acceptable to the Bank by submitting
an updated Collateral Schedule or otherwise pledging such Collateral to the
Bank.

     

    
      	
               
      

            	
              7.4

            	
              Except
      as may be the case for book-entry securities held on a Reserve Bank’s
      books pursuant to Operating Circular No. 7 issued by the Bank, the Bank
      has no duty to collect any income accruing on Collateral or to preserve
      any rights relating to Collateral.

            

    

     

    
      	
               
      

            	
              7.5

            	
              The
      Borrower hereby:

            

    

     

    
      	
               
      

            	
              (a)

            	
              authorizes
      the Bank at any time to file or record in any filing office in any
      jurisdiction which the Bank determines appropriate to perfect the security
      interests set forth hereunder, financing statements, and any amendments or
      continuation statements related thereto without the signature of the
      Borrower therein, that describes the Collateral substantially as set forth
      on Appendix 1 hereto, and the Borrower shall, promptly at the Bank’s
      request, provide any additional information required by Article 9 of the
      UCC, as in effect in any relevant jurisdiction, for the sufficiency or
      acceptability of any financing
statement;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (b)

            	
              ratifies
      its authorization for the Bank to have filed any financing statement,
      including any  amendment or continuation statement related
      thereto, in any jurisdiction, where the same has been filed prior to the
      date on which the Letter of Agreement is signed by the
      Borrower;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (c)

            	
              authorizes
      the Bank, at any time, to take any and all other actions that may be
      necessary or, in the Bank’s sole discretion, desirable to obtain,
      preserve, perfect or enforce the Bank’s security interest in the
      Collateral;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (d)

            	
              authorizes
      the Bank to endorse or assign as the Borrower’s agent any item of
      Collateral, to cause Collateral consisting of uncertificated securities to
      be marked on the books of the securities issuer as pledged to the Bank or
      its nominee as pledgee, and to inspect Collateral held by the Borrower and
      copy any relevant records and/or
documents.

            

    

     

    
      	
               
      

            	
              7.6

            	
              If
      the Bank approves, the Borrower may hold certain Collateral in a BIC
      Arrangement ("BIC-held Collateral") subject to the following:#

            

    

     

    
      	
               
      

            	
              (a)

            	
              BIC-held
      Collateral shall be prominently identified as Pledged to the Bank and
      subject exclusively to the Bank’s written instructions. At the Bank’s
      request, the Borrower shall, without delay, prominently and conspicuously
      affix a legend to items of BIC-held Collateral indicating that such items
      are subject to a security interest in favor of the
  Bank.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (b)

            	
              The
      Borrower shall mark its records to show that BIC-held Collateral has been
      pledged to the Bank and is subject exclusively to the Bank’s written
      instructions. Any computer generated list or report containing BIC-held
      Collateral must incorporate a legend indicating that such Collateral is
      pledged to the Bank.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (c)

            	
              Upon
      the Bank’s request, the Borrower shall at all times segregate BIC-held
      Collateral from its own assets or the assets of any other party and shall
      hold Collateral in such location(s) approved by the Bank. BIC-held
      Collateral shall not be removed from such location(s) without the prior
      written approval of the Bank.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (d)

            	
              The
      Borrower may withdraw or replace BIC-held Collateral only with the
      approval of the Bank and on terms acceptable to the
  Bank.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (e)

            	
              The
      Bank may from time to time notify Borrower of additional requirements on
      BIC-held Collateral.  The Borrower's failure to comply with such
      requirements shall disqualify the Borrower from participation in the BIC
      Arrangement.

            

    

     

    
      	
               
      

            	
              7.7

            	
              With
      respect to any item of Collateral not delivered or transferred to the Bank
      or its custodian, including BIC-held Collateral, the Borrower shall hold
      such item of Collateral in trust for the Bank until the Collateral is
      delivered or transferred in accordance with the Bank’s
      instructions.  The Borrower bears the risk of loss for any
      Collateral held in the Borrower’s possession, at any custodian, maintained
      in an account at a securities intermediary other than a Reserve Bank, or
      in transit to or from the Bank.  The Borrower also bears the
      risk of any accidental loss or damage to Collateral in the Bank’s
      possession to the extent the Bank exercised reasonable
    care.

            

    

     

    
      	
               
      

            	
              7.8

            	
              Unless
      an Event of Default occurs or the Bank expressly directs otherwise, any
      proceeds, dividend, interest, rent, proceeds of redemption, and/or any
      other payment received by the Borrower regarding any Collateral may be
      retained by the Borrower.  If the Bank directs that any of the
      foregoing be paid to the Bank, the Borrower shall remit those payments, or
      cause such payments to be remitted, promptly to the Bank and, until
      receipt by the Bank, such payments are deemed to be held in trust for the
      Bank.

            

    

     

    
      	
               
      

            	
              7.9

            	
              The
      Bank is under no obligation to allow for the withdrawal of any item of
      Collateral from the pledge to the Bank, or to allow the removal of any
      item of Collateral from the Collateral Schedule or otherwise release its
      security interest in any item of Collateral
  unless:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Borrower has provided substitute Collateral acceptable to the Bank;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Bank has verified, in accordance with its normal customs and procedures,
      that all Obligations have been unconditionally repaid in full and that the
      Borrower is not currently in default under another agreement with the Bank
      or any other Reserve Bank.

            

    

     

    
      	
               
      

            	
              7.10

            	
              In
      order to perfect its security interest in property, whether now owned or
      hereafter acquired, maintained with any other Reserve Bank including, but
      not limited to, any deposit account, investment property in any
      Unrestricted Securities Account, and items in the process of collection
      and their proceeds, but excluding any investment property in any
      Unrestricted Securities Account maintained at any Reserve Bank that the
      Borrower may not encumber under applicable law, Bank will enter, or has
      entered, a control agreement, substantially in the form of Appendix 2,
      with any other Reserve Bank with respect to any accounts of Borrower
      maintained at such Reserve Banks.  Borrower hereby agrees to and
      consents to be bound by the terms of any such control
      agreement.   It is understood that any such control
      agreement creates in favor of the Bank and for the benefit of the other
      Reserve Banks, a legal, valid, and enforceable security interest,
      perfected by control, within the meaning of the UCC, in Collateral
      described in this section.  The Bank will not exercise its
      rights in such accounts under such agreement except upon the occurrence of
      an Event of Default.

            

    

     

    
      	
               
      

            	
              7.11

            	
              Unless
      Bank notifies the Borrower otherwise, the Borrower shall be permitted to
      Transfer Collateral consisting of securities held in the Borrower's
      Unrestricted Securities Account as provided for in Operating Circular No.
      7.  Securities that the Borrower Transfers shall be free and
      clear of any security interest of the Bank created
      hereunder.  The term "Transfer" as used in this Section, has the
      meaning set forth in Operating Circular No.
7.

            

    

     

    8.0           MAINTENANCE
OF LENDING DOCUMENTS

     

    The
documents specified below (“FRB Lending Documents”) must be maintained
continuously as official records of the Borrower.  The documents
listed in subparagraph (a) shall at all times be kept together in one place (in
the case of a foreign Borrower, at the office of its branch or agency in the
Federal Reserve District in which the Borrower may obtain an Advance or incur
Indebtedness), while the document listed in subparagraph (b) may be kept in any
accessible and secure location on the Borrower’s premises.  The FRB
Lending Documents mean:

     

    
      	
               
      

            	
              (a)

            	
              a
      copy of the Lending Agreement; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      current statement of outstanding Advances and
  Indebtedness.

            

    

    

    
      	
              9.0

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

     

    
      	
               
      

            	
              9.1

            	
              The
      Borrower represents and warrants
that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              (i)
      the Borrower has the power and authority, and the legal right, to make,
      deliver and perform the Lending Agreement and to obtain an Advance or
      otherwise incur Indebtedness; (ii) the Borrower has taken all necessary
      organizational action to authorize the execution, delivery and performance
      of the Lending Agreement and to authorize the obtaining of an Advance on
      the terms and conditions of the Lending Agreement; (iii) no consent or
      authorization of, filing with, notice to or other act by or in respect of,
      any governmental authority or any other person is required in connection
      with the obtaining of Advances hereunder or with the execution, delivery,
      performance, validity or enforceability of the Lending Agreement; and (iv)
      the Lending Agreement has been duly executed and delivered on behalf the
      Borrower;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Borrower is duly organized, validly existing and in good standing under
      the laws of the jurisdiction of its organization and is not in violation
      of any laws or regulations in any respect which could have any adverse
      effect whatsoever upon the validity, performance or enforceability of any
      of the terms of the Lending
Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Lending Agreement constitutes a legal, valid and binding obligation of the
      Borrower, enforceable against the Borrower in accordance with its
      terms;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Borrower has rights in Collateral sufficient to grant an enforceable
      security interest to the Bank and its rights in Collateral are free of any
      assertion of a property right that would adversely affect a Reserve Bank's
      right to Collateral, including but not limited to any claim, lien,
      security interest, encumbrance, preference or priority arrangement or
      restriction on the transfer or pledge of Collateral (an "Adverse Claim"),
      except as created by, or otherwise permitted under, the Lending Agreement
      or by the Bank;

            

    

     

    
      	
               
      

            	
              (e)

            	
              all
      information set forth on the Certificate is accurate and complete and
      there has been no change in such information since the date of the
      Certificate;

            

    

     

    
      	
               
      

            	
              (f)

            	
              (i)
      the Lending Agreement is effective to create in favor of the Bank for
      itself and for the benefit of the other Reserve Banks, if applicable, a
      legal, valid, and enforceable security interest in the Collateral
      described in the Lending Agreement and proceeds thereof; (ii) when
      financing statements are filed in the state filing offices located in the
      jurisdictions specified on the Certificate, those security interests shall
      constitute a fully and validly perfected lien on, and security interest
      in, all rights, title and interest of the Borrower in such Collateral as
      to which perfection can be obtained by filing, as security for the
      Obligations, in each case prior and superior in right to any other person
      (except for liens that arise by operation of law); and (iii) no financing
      statement or other public notice with respect to all or any part of the
      Collateral is on file or of record in any public office, except such as
      have been filed in favor of the Bank pursuant to the Lending Agreement,
      are permitted by the Lending Agreement, or are otherwise permitted by the
      Bank;

            

    

     

    
      	
               
      

            	
              (g)

            	
              no
      statement or information contained in the Lending Agreement or any other
      document, certificate, or statement furnished by the Borrower to the Bank
      or any other Reserve Bank for use in connection with the transactions
      contemplated by the Lending Agreement, on and as of the date when
      furnished,  is untrue as to any material fact or omits any
      material fact necessary to make the same not misleading, and the
      representations and warranties in the Lending Agreement are true and
      correct in all material respects;

            

    

     

    
      	
               
      

            	
              (h)

            	
              the
      Borrower has evaluated the potential risks and liabilities accruing to the
      Borrower under applicable Federal and State environmental laws, rules, and
      regulations and has determined, to the best of the Borrower’s knowledge
      that under applicable laws, rules, or regulations that impose
      environmental liability on a creditor or lender or an owner or manager of
      the real property that secures Collateral, the Borrower does not have and
      has not assumed any liability of any person thereunder;
  and

            

    

     

    (i)           no
Event of Default has occurred or is continuing.

     

    
      	
               
      

            	
              9.2

            	
              Each
      time the Borrower requests an Advance, incurs any Indebtedness, or grants
      a security interest in any Collateral to a Reserve Bank, the Borrower is
      deemed to make all of the foregoing representations and warranties on and
      as of the date such Advance or Indebtedness is incurred or security
      granted.  Such representations and warranties shall be true on
      and as of such date and shall remain true and correct so long as the
      Lending Agreement remains in effect, any Obligation remains outstanding,
      or any other amount is owing to the
Bank.

            

    

     

    10.0        COVENANTS

     

    The
Borrower covenants that so long as the Lending Agreement remains in effect or
any Obligation remains outstanding or any other amount is owing to the
Bank:

     

    
      	
               
      

            	
              (a)

            	
              the
      Borrower shall provide to the Bank any reports or statements that the Bank
      requests;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Borrower shall permit the Bank or its designee to inspect or copy any
      documents or evidence in the Borrower’s possession or control relating to
      Collateral and any Obligation;

            

    

     

    
      	
               
      

            	
              (c)

            	
              except
      for the security interest herein granted or otherwise permitted hereunder
      or by the Bank, the Borrower shall have rights in the Collateral free from
      any Adverse Claim, and shall maintain the security interest created hereby
      as a perfected security interest with the priority set forth in Section
      9.1(f) and shall take all actions necessary or prudent to defend against
      Adverse Claims;

            

    

     

    
      	
               
      

            	
              (d)

            	
              except
      as otherwise permitted hereunder or by the Bank, the Borrower shall not
      (i) sell or otherwise dispose of, or offer to sell or otherwise dispose
      of, the Collateral or any interest therein, or (ii) pledge, mortgage, or
      create, or permit the existence of any right of any person in or claim to,
      the Collateral other than the security interest granted
      herein;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Borrower shall pay promptly when due (or before they become delinquent)
      all taxes, assessments, governmental charges, and levies imposed upon the
      Collateral or any income or profits therefrom, and any claims of any kind
      against Collateral;

            

    

     

    
      	
               
      

            	
              (f)

            	
              upon
      the Bank’s request, the Borrower shall promptly reimburse the Bank for any
      expense incurred by the Bank with respect to enforcing or administering
      the Lending Agreement and any item of Collateral, including perfecting or
      maintaining perfection of the Borrower’s and/or the Bank’s security
      interest in Collateral, and assembling, transporting, safekeeping,
      managing, inspecting, or liquidating Collateral, whether Collateral is
      held by the Bank, its custodian, or the
  Borrower;

            

    

     

    
      	
               
      

            	
              (g)

            	
              the
      Borrower shall not perform any act with respect to any Collateral that
      would impair the Bank’s rights or interests therein, nor will the Borrower
      fail to perform any act that would reasonably be expected to prevent such
      impairment or that is necessary to preserve the Bank’s
    rights;

            

    

     

    
      	
               
      

            	
              (h)

            	
              at
      the Bank’s request, the Borrower shall promptly execute any agreement or
      document and take any other actions that the Bank deems necessary or
      desirable, including but not limited to the execution and delivery of any
      document the Bank deems necessary to grant, perfect or otherwise protect
      the Bank’s security interest in any existing or additional
      Collateral;

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Borrower shall promptly notify the Bank if the Borrower is or is about to
      become an  undercapitalized depository institution or a
      critically undercapitalized depository institution, as such terms are
      defined in Regulation A;

            

    

     

    
      	
               
      

            	
              (j)

            	
              the
      Borrower shall renew or keep in full force and effect its organizational
      existence or take all reasonable action to maintain all rights,
      privileges, licenses and franchises necessary or desirable in the normal
      conduct of its business;

            

    

     

    
      	
               
      

            	
              (k)

            	
              without
      providing at least 30 days’ prior written notice to the Bank and
      submitting an updated Certificate to the Bank, the Borrower shall not
      cause or permit any of the information provided in the Certificate,
      including its jurisdiction of organization, to become
    untrue;

            

    

     

    
      	
               
      

            	
              (l)

            	
              the
      Borrower shall continuously maintain the FRB Lending Documents in the same
      manner as it maintains all other official corporate records, and the FRB
      Lending Documents shall be immediately and routinely available to any
      examiner authorized to examine the
Borrower;

            

    

     

    
      	
               
      

            	
              (m)

            	
              in
      any BIC Arrangement, the Borrower shall provide for periodic audits of
      BIC-held Collateral pledged to the Bank, shall notify the Bank immediately
      of any irregularities discovered during any audits, shall certify
      periodically, as determined by the Bank, that it is complying with the
      requirements of the BIC Arrangement, and shall ensure risk ratings
      assigned to any Collateral subject to Borrower’s internal loan ratings are
      accurate;

            

    

     

    
      	
               
      

            	
              (n)

            	
              the
      Borrower shall promptly notify the Bank of the occurrence or impending
      occurrence of any Event of Default;
and

            

    

     

    
      	
               
      

            	
              (o)

            	
              the
      Borrower shall promptly notify the Bank of any change in applicable law,
      the regulations or policies of its chartering and/or licensing authority,
      or its charter, bylaws, or other governing documents, or any legal or
      regulatory process asserted against the Borrower, that materially affects
      or may materially affect the Borrower’s authority or ability to lawfully
      perform its obligations under the Lending
  Agreement.

            

    

     

    11.0      WAIVER
OF IMMUNITY; SUBMISSION TO JURISDICTION

     

    
      
        	
                 
      

              	
                11.1

              	
                If
      the Borrower or its property is now, or in the future becomes, entitled to
      any immunity, whether characterized as sovereign or otherwise (including,
      without limitation, immunity from set-off, from service of process, from
      jurisdiction of any court or tribunal, from attachment in aid of
      execution, from attachment prior to the entry of a judgment, or from
      execution upon a judgment) in any legal proceeding in Federal or State
      courts in the United States of America, or in the courts of the country
      where the Borrower is chartered, or in the courts of the country in which
      the Borrower principally conducts its business, then the Borrower
      expressly and irrevocably waives, to the maximum extent permitted by law,
      any such immunity. To the extent the Borrower receives any such
      entitlement in the future, the Borrower shall promptly notify the Bank of
      such entitlement.

              

      

    

     

    
      	
               
      

            	
              11.2

            	
              The
      Borrower submits in any legal action or proceeding relating to or arising
      out of the Lending Agreement, or the conduct of any party with respect
      therefor or for recognition and enforcement of any judgment in respect
      thereof, to the nonexclusive general jurisdiction of the Federal District
      Court sitting where the Bank’s head office is located and any appellate
      court thereof.  In the case of a foreign Borrower, such Borrower
      also submits to the non-exclusive jurisdiction of the courts of the
      country where the Borrower is chartered or in which it principally
      conducts its business over any suit, action or proceeding arising out of
      or relating to the Lending Agreement. The Borrower agrees that service of
      process in any such action or proceeding may be effected by mailing a copy
      thereof by registered or certified mail (or any substantially similar form
      of mail), postage prepaid, to the address provided in the Letter of
      Agreement; and agrees that nothing herein shall affect the right to effect
      service of process in any other manner permitted by law or shall limit the
      right to sue in any other jurisdiction.  The Borrower
      irrevocably waives, to the fullest extent permitted by law, any objection
      which it may now or hereafter have to the venue of any such suit, action,
      or proceeding brought in any such court and any claim that any such suit,
      action or proceeding brought in such a court has been brought in an
      inconvenient forum. The Borrower also agrees that a final judgment in any
      such suit, action, or proceeding brought in such court shall be conclusive
      and binding upon the Borrower.  The foregoing does not diminish
      or otherwise affect the Bank's rights under Section 25B of the Federal
      Reserve Act, 12 USC § 632.

            

    

     

    12.0        REMEDIES
UPON DEFAULT

     

    
      	
               
      

            	
              12.1

            	
              Upon
      the occurrence of, and at any time during the continuance of, an Event of
      Default, the Bank may pursue any of the following remedies, separately,
      successively, or concurrently:

            

    

     

    
      	
               
      

            	
              (a)

            	
              debit
      the Borrower’s Account, or cause the Borrower’s Account to be debited (in
      the case of an Account at another Reserve Bank), in an amount up to the
      Borrower’s unpaid Obligations;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (b)

            	
              set
      off any Obligation against any amount owed by the Bank or any other
      Reserve Bank to the Borrower, whether or not such amount owed is then due
      and payable;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (c)

            	
              exercise
      any right of set-off or banker’s lien provided by applicable law against
      the Borrower’s property in the possession or control of, or maintained
      with, the Bank or any other Reserve Bank, including but not limited to
      items in process of collection and their proceeds and any balance to the
      credit of the Borrower with a Reserve
Bank;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (d)

            	
              take
      possession of any Collateral not already in the Bank’s possession, without
      demand and without legal process.  Upon the Bank’s demand, the
      Borrower shall assemble and make Collateral available to the Bank as the
      Bank directs.  The Borrower grants to the Bank the right, for
      this purpose to enter into or on any premises where Collateral may be
      located; and

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (e)

            	
              pursue
      any other remedy available to collect, enforce, or satisfy any Obligation,
      including exercising its rights as a secured creditor to collect income on
      the Collateral, or to sell, assign, transfer, lease or otherwise dispose
      of Collateral whether or not Collateral is in the Bank’s
      possession.

            

    

     

    
      	
               
      

            	
              12.2

            	
              If
      the Bank exercises its rights in Collateral upon an Event of
      Default:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Bank may sell, assign, transfer, and deliver, at the Bank’s option, all or
      any part of Collateral at private or public sale, at such prices as the
      Bank may, in good faith, deem best, without advertisement, and the
      Borrower waives notice of the time and place of the sale, except any
      notice that is required by law and may not be
  waived;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Bank has no obligation to prepare Collateral for sale, and the Bank may
      sell Collateral and disclaim any warranties without adversely affecting
      the commercial reasonableness of the
sale;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Bank has no obligation to collect from any third party or to marshal any
      assets in favor of the Borrower to satisfy any Obligation;
    and

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Bank or another Reserve Bank may purchase any or all of Collateral and pay
      for it by applying the purchase price to reduce amounts owed by the
      Borrower to the Bank or any other Reserve
Bank.

            

    

     

    
      	
               
      

            	
              12.3

            	
              The
      Borrower appoints the Bank, with full power of substitution, as its true
      and lawful attorney-in-fact with full irrevocable power and authority in
      the place and stead of the Borrower, to endorse, assign, transfer, and
      deliver Collateral to any party, and to take any action deemed necessary
      or advisable by the Bank either to protect the Bank’s interests or
      exercise its rights under the Lending Agreement, including taking any
      action to perfect or maintain the Bank’s security interest (including but
      not limited to recording an assignment of a mortgage or filing a financing
      statement).  This power of attorney is coupled with an interest
      and as such is irrevocable and full power of substitution is granted to
      the assignee or holder.  As attorney-in-fact, the Bank may take
      any lawful action to collect all sums due in connection with Collateral,
      the Bank may release any Collateral, instruments or agreements securing or
      evidencing the Obligations as fully as the Borrower could do if acting for
      itself, and the Bank may take any action set forth in Section 7.5, but the
      Bank has no obligation to take any such actions or any other action in
      respect of the Collateral.

            

    

     

    
      	
               
      

            	
              12.4

            	
              The
      proceeds realized by the Bank upon selling or disposing of Collateral, to
      the extent actually received in cash by the Bank or another Reserve Bank,
      will be applied toward satisfaction of the Obligations.  The
      Bank shall apply such proceeds first to any fees, other charges,
      penalties, indemnities, and costs and expenses of, collection, or
      realizing on interests in Collateral (including reasonable attorneys’
      fees), next to accrued but unpaid interest, and last to the unpaid
      principal balance.  The Bank will account to the Borrower for
      any surplus amount realized upon such sale or other disposition, and the
      Borrower shall remain liable for any
deficiency.

            

    

     

    
      	
               
      

            	
              12.5

            	
              No
      delay or failure by the Bank to exercise any right or remedy accruing upon
      an Event of Default shall impair any right or remedy, waive any default or
      operate as an acquiescence to the Event of Default, or affect any
      subsequent Event of Default of the same or of a different
      nature.

            

    

     

    
      	
               
      

            	
              12.6

            	
              On
      complying with the provisions of the Lending Agreement and applicable law,
      the Bank is fully discharged from any liability or responsibility to any
      person regarding Collateral.

            

    

     

    13.0        INDEMNIFICATION

     

    
      	
               
      

            	
              13.1

            	
              The
      Borrower shall indemnify the Bank and its officers, directors, employees
      and agents (each, an "Indemnified Party") for any loss, claim, damage,
      liability, and expense (including, without limitation, reasonable
      attorneys’ fees, court costs and expenses of litigation) incurred by an
      Indemnified Party in the course of or arising out of the performance of
      the Lending Agreement, any action related to Collateral, or any action to
      which an Indemnified Party may become subject in connection with the
      Bank’s exercise, enforcement or preservation of any right or remedy
      granted to it under the Lending Agreement, except to the extent that such
      loss, claim, damage, liability, or expense results, as determined by a
      court, from the Bank’s gross negligence or willful
    misconduct.

            

    

     

    
      	
               
      

            	
              13.2

            	
              The
      Bank will give the Borrower written notice of any claim that the Bank or
      any other person may have under this indemnity.  The Borrower is
      not liable for any claim that is compromised or settled by the Bank or
      such persons without the Borrower’s prior written consent, provided that
      the Borrower responded promptly and in the Bank’s judgment, adequately, to
      the Bank’s notice of such claim.  This indemnity remains an
      obligation of the Borrower notwithstanding termination of the Lending
      Agreement, and is binding on the Borrower’s successors and
      assigns.  Upon written demand from the Bank, the Borrower shall
      pay promptly amounts owed under this indemnity, free and clear of any
      right of offset, counterclaim or other deduction, and the Bank’s
      reasonable determination of amounts owing hereunder is
      binding.  If not promptly paid by the Borrower, such obligation
      becomes an Obligation secured under the Lending
  Agreement.

            

    

     

    14.0        MISCELLANEOUS

     

    
      	
               
      

            	
              14.1

            	
              The
      Bank is not obligated by the Lending Agreement or otherwise to make,
      increase, renew, or extend any Advance to the
  Borrower.

            

    

     

    
      	
               
      

            	
              14.2

            	
              The
      amount of any Advance Repayment Amount and/or Obligation reflected on the
      books and records of a Reserve Bank is presumptive evidence of the amounts
      due and owing by the Borrower to such Reserve
  Bank.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              14.3

            	
              The
      Borrower’s obligations under the Lending Agreement shall be performed by
      it at its own cost and expense.

            

    

     

    
      	
               
      

            	
              14.4

            	
              Unless
      expressly agreed otherwise by the Bank, the time zone of the Bank’s head
      office shall be used to determine any deadline hereunder, including the
      time an Advance Repayment Amount is due and
  payable.

            

    

     

    
      	
               
      

            	
              14.5

            	
              The
      Bank may record telephone communications between the Bank and the Borrower
      and such recordings may be submitted in evidence to any court or in any
      proceeding for the purpose of establishing any matters pertinent to the
      Lending Agreement.

            

    

     

    
      	
               
      

            	
              14.6

            	
              The
      Bank may rely on any record used by the Borrower to endorse or pledge
      Collateral to the Bank.

            

    

     

    
      	
               
      

            	
              14.7

            	
              The
      Bank’s rights and remedies under the Lending Agreement are in addition to
      any others agreed to by the Borrower or that may exist at law or in
      equity.

            

    

     

    
      	
               
      

            	
              14.8

            	
              Any
      provision of the Lending Agreement that is unenforceable or invalid under
      any law in any jurisdiction is ineffective to the extent of such
      unenforceability or invalidity without affecting the enforceability or
      validity of any other provision, and any such unenforceability or
      invalidity shall not invalidate or render unenforceable such provision in
      any other jurisdiction.

            

    

     

    
      	
               
      

            	
              14.9

            	
              The
      Lending Agreement is binding on the receivers, administrators, permitted
      assignees and successors, and legal representatives of the Borrower and
      inures to the benefit of the Bank, its assignees and
      successors.

            

    

     

    
      	
               
      

            	
              14.10

            	
              The
      Bank may sell, transfer, assign or participate to any other Reserve
      Bank(s) any or all of its interest in repayment of any Obligation and may
      purchase any Obligation from any other Reserve Bank.  The
      Borrower may not assign its rights or obligations
    hereunder.

            

    

     

    
      	
               
      

            	
              14.11

            	
              The
      Bank is not required to provide a written advice to the Borrower for any
      Advance or Advance Repayment
Amount.

            

    

     

    
      	
               
      

            	
              14.12

            	
              The
      Bank has no liability for acting in reliance upon any communication
      (including a fax, telex, electronic communication, or similar
      communication) reasonably believed by the Bank to be genuine or to be sent
      by an individual acting on behalf of the
  Borrower.

            

    

     

    
      	
               
      

            	
              14.13

            	
              The
      Section headings used herein are for convenience only and are not to
      affect the construction hereof or be taken into consideration in the
      construction hereof.

            

    

    

    
      	
              15.0

            	
              AMENDMENT

            

    

     

    The Bank,
in its sole discretion, may amend the Lending Agreement without prior notice at
any time.  The Bank shall notify the Borrower of any such amendment
and, thereafter, any pledge of Collateral, request for any Advance or incurrence
of any other Obligation shall constitute the Borrower’s agreement to such
amendment as of the effective date of such amendment.  An amendment
does not modify, except for a change in interest rate or other charges, the
terms of an outstanding Advance.

     

    
      	
              16.0

            	
              NOTICE

            

    

     

    
      	
               
      

            	
              16.1

            	
              Any
      notice or other communication in respect of this Agreement may be given in
      any manner set forth below to the addresses or numbers or in accordance
      with the e-mail or electronic messaging system details provided in or
      pursuant to this Agreement with respect to the receiving party (the
      "recipient") and will be deemed effective as
  indicated:

            

    

     

    
      	
               
      

            	
              (a)

            	
              if
      in writing and delivered in person or by courier, on the date it is
      delivered;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (b)

            	
              if
      sent by facsimile transmission, on the date that transmission is received
      in legible form (it being agreed that the burden of proving receipt will
      be on the sender and will not be met by a transmission report generated by
      the sender's facsimile machine);

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (c)

            	
              if
      sent by certified or registered mail (airmail, if overseas) or the
      equivalent (return receipt requested), on the date that mail is delivered
      or its delivery is attempted;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (d)

            	
              if
      sent by electronic messaging system, on the date that electronic message
      is received;

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (e)

            	
              if
      sent by e-mail, on the date that e-mail is delivered;
  or

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              (f)

            	
              if
      by telephone or other oral communication, on the date that oral
      communication occurred, provided that such oral communication either is
      confirmed promptly in writing by at least one of the methods specified in
      (a) to (e) above or is recorded,

            

    

     

    unless
the date of the delivery (or attempted delivery), the receipt or the occurrence,
as applicable, is not a Business Day or that communication is delivered (or
attempted), received or shall have occurred, as applicable, after the close of
business on a Business Day, in which case that communication shall be deemed
given and effective on the first following day that is a Business
Day.

     

    
      	
               
      

            	
              16.2

            	
              If
      sent to the Borrower, the notice must be addressed as indicated by the
      Borrower in the Letter of Agreement, or as otherwise specified by the
      Borrower in a record.  If sent to the Bank, the notice must be
      addressed to the credit function at the Bank’s head office or as otherwise
      specified by the Bank.

            

    

     

    
      	
              17.0

            	
              TERMINATION

            

    

     

    
      	
               
      

            	
              17.1

            	
              The
      Borrower may terminate its consent to be bound by the Lending Agreement by
      giving written notice to the credit function at the Bank’s head office or
      as otherwise specified by the Bank, so long as no Advance is then
      outstanding.%  Notice of termination does
      not release the Borrower or affect the Bank’s rights, remedies, powers,
      security interests or liens against Collateral in existence prior to the
      Bank’s receipt of the notice, nor does notice of termination affect any
      provision of the Lending Agreement which by its terms survives termination
      of the Lending Agreement.

            

    

     

    
      	
               
      

            	
              17.2

            	
              Upon
      termination, the Bank may retain Collateral until the Bank has had a
      reasonable opportunity to verify, in accordance with its normal customs
      and procedures, that all of the Borrower’s Obligations, contingent or
      otherwise, to the Bank or any other Reserve Bank have been fully satisfied
      and discharged.

            

    

     

    
      	
               18.0

            	
              GOVERNING
      LAW

            

    

     

    
      	
               
      

            	
              18.1

            	
              The
      Lending Agreement, including any Advance or any other transaction entered
      into pursuant thereto, is governed by the law of the State in which the
      Bank’s head office is located.  The Lending Agreement is a
      security agreement for purposes of the UCC, as in effect in any relevant
      jurisdiction, and other applicable
law.

            

    

    
      	
               
      

            	 

    

    
      	
              19.0

            	
              WAIVER
      OF JURY TRIAL

            

    

     

    THE
BORROWER AND THE BANK EACH HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, COUNTERCLAIM, OR CROSS CLAIM
ARISING IN CONNECTION WITH, OUT OF, OR OTHERWISE RELATING TO THE LENDING
AGREEMENT, THE COLLATERAL, OR ANY TRANSACTION OR AGREEMENT ARISING THEREFROM OR
RELATED THERETO.

     

    20.0        STATUS
OF PREVIOUS LENDING AGREEMENT

     

    This
Operating Circular amends and restates the Bank’s Operating Circular governing
Lending dated January 2, 1998.

    

      

    

    

      *
Although a Reserve Bank almost always extends credit in the form of an Advance,
a Reserve Bank may extend credit by discounting paper that meets the
requirements described in the Federal Reserve Act and Regulation A if the
Reserve Bank concludes that a discount more effectively would meet the needs of
the situation.  A loan in the form of a discount would be subject to a
separate agreement between the Reserve Bank and the Borrower.  Such
agreement may be based on this Circular and, if so, may vary or supplement the
terms of this Circular as appropriate.

    

      
      # If
Collateral is held by an affiliate of the Borrower, the Borrower must comply
with (or compel such affiliate's compliance with) the provisions in this
Operating Circular pertaining to BIC-held Collateral.  In addition,
such affiliate must execute an Agreement for Third Party Custodian to Hold
Collateral, the form of which is in Appendix 5.  Finally, the Bank may
require the affiliate to complete Collateral Schedules and participate or comply
with inspection and certification requirements related to the BIC-held
Collateral. For purposes of this Circular, affiliate means a parent, direct or
indirect subsidiary of the Borrower or any entity having the same parent or
ultimate parent as the Borrower.

    

      
      %
Collateral arrangements, including arrangements with securities
intermediaries, such as Euroclear or Clearstream, and third-party custody and
Borrower-in-Custody arrangements may have their own termination
provisions.

    

    
      
      

      
        

      

    

    
      
      

    

    APPENDIX
1: FINANCING STATEMENT COLLATERAL DESCRIPTION

     
 

    All
accounts, chattel paper, inventory, equipment, instruments, investment property,
general intangibles, documents, and all assets, now owned or hereafter acquired,
that are identified, from time to time, by Debtor to Secured Party in writing,
by electronic means (including by CD-ROM) or by any other means agreed by the
parties, as collateral securing the obligations of Debtor to Secured Party under
a written agreement between the parties, and all proceeds thereof; and all
collateral, guarantees, letters of credit, surety bonds and other supporting
obligations pertaining to the foregoing, and all proceeds thereof.

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
2: TERMS OF CONTROL AGREEMENT

     
 

    Reference
is made to Operating Circular No. 10 as issued by each of the Federal Reserve
Banks, as the same may be amended, supplemented or otherwise modified from time
to time ("OC-10"; capitalized terms used but not defined herein have the meaning
assigned them in OC-10).

     

    Whereas, by agreeing to OC-10,
each Borrower has given the Federal Reserve Bank with which it has agreed to
OC-10 (an "OC-10 Reserve Bank"), for itself and as agent for each other Federal
Reserve Bank, a security interest in property, whether now owned or hereafter
acquired, maintained with any other Federal Reserve Bank (an "Account
Maintaining Reserve Bank") including, but not limited to, any deposit account,
investment property in any securities account, and items in the process of
collection and their proceeds (but excluding any investment property in any
Unrestricted Securities Account maintained at any Federal Reserve Bank that the
Borrower may not encumber under applicable law) (each an
"Account");

     

    Whereas each OC-10 Reserve
Bank would like to perfect its security interest in each Account  now
or hereafter maintained at any Account Maintaining Reserve Bank by control, as
such term is used in Articles 8 and 9 of the Uniform Commercial Code in effect
in the relevant jurisdictions; and

     

    Whereas, by agreeing to OC-10,
each Borrower has agreed to and consented to be bound to the terms of this
Control Agreement;

     

    Now, therefore, each Account
Maintaining Reserve Bank agrees with each OC-10 Reserve Bank, for itself and as
agent for each other Federal Reserve Bank, that with respect to any Borrower
maintaining an Account at such Account Maintaining Reserve Bank,
it  will follow the instructions of an OC-10 Reserve Bank as to the
withdrawal or disposition of funds or securities from time to time credited to
any such Account, or as to any other matters pertaining to such Account without
further consent or instruction from Borrower, subject only to the interest that
the Account Maintaining Reserve Bank may also have in such Account.

     

    This
Agreement is governed by the law of the State in which the Account Maintaining
Reserve Bank's head office is located.

     
 

    
      	
              FEDERAL
      RESERVE BANK OF ATLANTA

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            	
              FEDERAL
      RESERVE BANK OF MINNEAPOLIS

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            
	
              FEDERAL
      RESERVE BANK OF BOSTON

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            	
              FEDERAL
      RESERVE BANK OF NEW YORK

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            
	
              FEDERAL
      RESERVE BANK OF CHICAGO

               

              By:  ________________________________

              Name:

              Title:

              Date:

            	
              FEDERAL
      RESERVE BANK OF PHILADELPHIA

               

              By:  ________________________________

              Name:

              Title:

              Date:

            
	
              FEDERAL
      RESERVE BANK OF CLEVELAND

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            	
              FEDERAL
      RESERVE BANK OF RICHMOND

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            
	
              FEDERAL
      RESERVE BANK OF DALLAS

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            	
              FEDERAL
      RESERVE BANK OF SAN FRANCISCO

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            
	
              FEDERAL
      RESERVE BANK OF KANSAS CITY

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            	
              FEDERAL
      RESERVE BANK OF ST. LOUIS

               

              By:  ________________________________

              Name:

              Title:

              Date:

               

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
3: APPLICATION PACKAGE FOR U.S. BORROWERS

     
 

    U.S.
Borrowers desiring capacity to request to borrow funds from their local Federal
Reserve Bank should submit the following documents, forms of which are included
in this appendix:

     
 

    Letter of
Agreement

    Certificate

    Authorizing
Resolutions

    Official
OC-10 Authorization List

     
 

    Before
submitting such documentation, a Borrower should consult with its Reserve Bank
for any special instructions.

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
OF LETTER OF AGREEMENT

    [Letterhead
of the Borrower]

    
 

     

    Date:
______________________________

     

    Federal
Reserve Bank of __________________________________

    Address

    City,
State, Zip

     

    Attention:

     

    In
consideration of being able to request Advances from and incur Indebtedness to
you and in consideration of your making Advances to us we agree to the
provisions of your Operating Circular No. 10, effective October 15, 2006, as
amended and supplemented from time to time thereafter (“Circular;” capitalized
terms used but not defined herein shall have the meaning specified in the
Circular).

     

    [Enclosed
are (1) certified copies of the Certificate, (2) certified copies of the
resolutions that you requested and (3) documents(s) containing the name, title,
and signature of those persons authorized to request Advances from and to pledge
our assets to you.]1

     

    Any
notices required under the Lending Agreement may be directed to the following
department(s):  [list department(s) and address(es)].

    
 

    _____________________________________________

    Full
Legal Name of Borrower

     
 

    By:  _________________________________________2

    
      	
               
      

            	
               Authorized
      signature(s)

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	 

    

    
    

    ______________________________________________

    
      Name(s)

    ______________________________________________

    Title(s)

    

    

      

    

      
      1 Each
Borrower should contact the Bank for instructions as to whether this paragraph
and the referenced documents, forms of which are provided as part of this
Appendix 3, must be submitted.

    

      
      2 The
signatory or signatories should be authorized to sign documents on behalf of the
Borrower as provided in the Authorizing Resolutions for Borrowers required by
OC-10.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    SCHEDULE
A

    To Letter of
Agreement

     
 

    FORM OF
CERTIFICATE3

     
 

    The
undersigned, the ____________________________ and _____________________________
of

                                                                             
        (Title)                            
                                  (Title)

    ___________________________
(the “Borrower”) hereby certifies, with reference to Operating Circular No.
10,

                   
(Name of Borrower)

    effective
as of October 15, 2006, as amended or supplemented from time to time thereafter
(“OC-10”; terms used but

    not
defined herein have the meaning specified therein), as agreed to by the Borrower
by Letter of Agreement

    dated
____________ __, ______ to the Bank as follows:

               (Date
of Letter of Agreement)

     

    
      	
               
      

            	
              (a)

            	
              attached
      hereto are true, correct and complete, as of the date of this Certificate,
      copies of the official

              document
      that specifies the official name or names of the Borrower in its
      jurisdiction of organization

              (“Organizational
      Document”).

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      information listed below is true and correct as of the date of this
      certificate:

            

    

     

    
      	 	
              1.           Borrower’s
      current mailing address is:

            

    

    
      	 	
               

            

    

    
      	 	
              2.           Borrower’s
      jurisdiction of organization is4:

            

    

    
      	
               
      

            	 

    

    
      	 	
              3.           Borrower’s
      Organizational number is (indicate n/a if not
  applicable):

            

    

    
      	
               
      

            	 

    

    
      	 	
              4.           Borrower's
      ABA number is :

            

    

    

    IN
WITNESS WHEREOF, the undersigned has signed this Certificate on __________ __,
2____.

    
 

          ___________________________5

          
Name:

          
Title:

     
 

          ___________________________6

           Name:

          
Title:

     
 

      

    

      
      
        	
                3

              	
                Borrowers
      that have previously provided the documents and information requested in
      this Certificate need only certify that the previously provided documents
      and information have not
changed.

              

      

    

      
      
        	
                4

              	
                Borrowers
      operating under a Federal charter (e.g., national banks or
      Federal savings banks or associations) (see 12 U.S.C. §§ 22 and
      1464(a), and 12 C.F.R. § 552.3), please specify the State of the
      Borrower’s main office or home
office.

              

      

    

      
      
        	
                5

              	
                One
      signatory should be someone authorized to sign documents on behalf of the
      Borrower as provided in the Authorizing Resolutions for Borrowers required
      by OC-10.

              

      

    

      
      
        	
                6

              	
                The
      other signatory should be in-house or outside counsel to the
      Borrower.

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM OF AUTHORIZING RESOLUTIONS FOR
BORROWERS

     
 

    As
evidenced by my signature below, I certify that the following are correct and
complete copies of the resolutions duly

    adopted
on ________________ at a meeting7 of
_____________________________________________________

                                       (Date)                                              
                  (Type
of governing body, e.g. board of directors)

    of the
_________________________ (“Borrower”), a
_________________________________________________

              
     (Official name of the
Borrower)                                 (Commercial
bank, mutual savings bank, savings bank and loan

                                                                                                      association,
credit union, or other charter type)

    duly
established and operating under the laws of ______________________________, with
its head office located at

    _____________________________________
in accordance with applicable law and the Borrower's chartering
documents.

    I also
certify that the resolutions have not been modified, remain in effect, are not
in conflict with any provisions of the

    Borrower’s
certificate of incorporation, bylaws, or chartering and/or licensing statutes or
requirements, and are reflected in

    the
minutes of the meeting at which these resolutions were approved:

     

    
      
        	
                 
      

              	
                1.

              	
                RESOLVED,
      that the Borrower is authorized to request advance(s) from, incur
      indebtedness, including

                overdrafts,
      to and pledge and grant a security interest in the Borrower’s property,
      whether now owned or

                hereafter
      acquired, to a Federal Reserve
Bank.

              

      

      
      

    

     

    
      	
               
      

            	
              2.

            	
              RESOLVED,
      that the persons with the following titles:

              ___________________________________________________________________________________

                                                                             
      (Exact
      titles of authorized persons)

              
                and each of their successors in office, any
      ____________ of whom ____________ authorized to

                
                                                                                               
         
      (one/two)                 
                    (is/are)

                  (1)
      take each of the actions listed in paragraphs (a)-(e) immediately below
      and (2) send the names, titles, and

                  signatures
      of individuals authorized to take such actions in the name and on behalf
      of the Borrower:8

                

              

            

    

     

    
      	 	
              (a)           to
      borrow money from a Federal Reserve Bank on the terms and security that
      such Federal Reserve

              Bank
      requires;

            

    

     

    
    

    
    

    
      	 	
              (b)           to
      discount, rediscount, or sell (with or without the Borrower’s agreement to
      repurchase) and, for any

              of
      those purposes, to endorse and assign notes, drafts, bills of exchange,
      acceptances, other bills receivable,

              evidences
      of indebtedness, and securities, now or hereafter acquired by the
      Borrower;

            

    

    
      	
               
      

            	 

    

    
      	 	
              (c)           to
      make, execute, and deliver any application, note, agreement, certificate,
      power of attorney, and

              any
      other document that any Federal Reserve Bank requires in connection with
      any transaction authorized by

              this
      resolution;

            

    

    
      	
               
      

            	 

    

    
      	 	
              (d)           to
      grant, assign, pledge, and transfer to any Federal Reserve Bank security
      interests in any or all

              property
      of the Borrower, whether now owned or hereafter acquired, and to endorse,
      assign, deliver,

              deposit,
      and/or pledge any of such property to any Federal Reserve Bank as
      collateral to secure payment

              or
      performance of any obligation of the Borrower to a Federal Reserve Bank;
      and

            

    

    
      	
               
      

            	 

    

    
      	 	
              (e)           to
      do any and all other acts and things that may be necessary or incidental
      to any transaction

              authorized
      by the relevant resolution, or that may be designed or intended to carry
      out the purpose of

              such
      resolution.

            

    

    
    

     

    
      	
            	
              3.

            	
              RESOLVED,
      that a Federal Reserve Bank making an extension of credit to the Borrower
      is appointed as the Borrower’s attorney-in-fact for it and in its place
      and stead, to endorse, assign, transfer and sell, set over and deliver
      collateral pledged to such Federal Reserve Bank, and to take any other
      action deemed necessary or advisable by the Federal Reserve Bank to
      exercise its rights with respect to any advance or indebtedness owed by
      the Borrower, in its capacity as secured party, including but not limited
      to accepting and endorsing payments on loans, preparing and/or filing of
      any documents necessary to perfect, protect, preserve, or release the
      interest of the Federal Reserve Bank or the Borrower in such collateral,
      or compromising disputes or handling insurance issues related to such
      collateral.  The power of attorney is coupled with an interest
      and as such is irrevocable, and full power of substitution is granted to
      the assignee or holder.  The Borrower ratifies any and all
      action authorized herein and taken by any such Federal Reserve Bank as the
      Borrower’s attorney-in-fact.  The rights, powers, and authority
      of the attorney-in-fact to perform any and all act(s) whatsoever necessary
      remains in full force and effect and binds the Borrower, its legal
      representatives, successors, and assigns until all indebtedness of the
      Borrower to any such Federal Reserve Bank has been fully satisfied and
      discharged.

            

      
      

      

        	
              	
                4.

              	
                
                  RESOLVED,
      that we approve and consent to be bound by the provisions of the Federal
      Reserve Bank of __________’s Operating Circular No 10, effective October
      15, 2006, as amended and supplemented from time to time thereafter
      (“OC-10”).

                

              

        
        

         

        
          	
                	
                  5.

                	
                  
                    RESOLVED,
      that the Borrower is authorized and approved to use any record (as such
      term is used in OC-10) to endorse or pledge to a Reserve Bank the notes
      and other obligations offered as collateral to secure payment or
      performance of any obligations of the Borrower to a Reserve Bank. The
      record will have the full force and effect of a manual
      endorsement.

                  

                

          
          

           

          
            	
                  	
                    6.

                  	
                    
                      RESOLVED,
      that these resolutions and the powers and authorizations granted or
      confirmed by them continue in effect until written notice of revocation is
      received by each Reserve Bank that has relied or is relying on such
      resolutions and the Borrower shall continue to be bound with respect to
      any outstanding obligations and pledges to any Reserve Bank at the time
      the notice of revocation is received by such Reserve
      Bank.

                    

                  

            
            

             

          

          
            	
                  	
                    7.

                  	
                    
                      RESOLVED,
      that a duly certified copy of these resolutions be furnished to each
      Reserve Bank to which the Borrower applies for an advance or has an
      account.

                    

                  

            
            

             

             

          

        

      

    

    IN
WITNESS WHEREOF, I have hereunto subscribed my name.

     
 

    _______________________________________

    Signature
of certifying official9

     
 

    _______________________________________

    Name and
Title

     
 

    _______________________________________

    Date

     

    

    

      

    

      
      
        	
                7

              	
                The
      language of this certification should be modified if the resolutions were
      adopted by written consent or
otherwise.

              

      

    

      
      
        	
                8

              	
                If
      certain persons are authorized to undertake only some of these activities,
      e.g., to borrow, but not to pledge on behalf of the Borrower, this
      resolution should be split to so specifically identify who is authorized
      to undertake which
activit(y)(ies).

              

      

    

      
      
        	
                9

              	
                The
      certifying official must be the secretary of the Borrower or another
      person authorized to certify the statements in this document and, in any
      case, may not be a person authorized in Paragraph
  2.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM OF OFFICIAL OC-10 AUTHORIZATION
LIST

    

    
      	
              Routing
      (ABA) No. _____________________

              Page
      ____ of _____

            	
              This
      supersedes our previous Official OC-10 Authorization List:

                        
              
      (circle:)   YES   or   NO

              If
      neither is circled, previous list will also remain in
    effect.

            

    

     

    
      	
              Name
      of Borrower:

            	
              Date:

            
	
              Street
      Address:

            	
              Telephone:

            

    

     

    To the
Federal Reserve Banks:  Below are the names, titles and
signatures of the individuals authorized to pledge collateral to/ request to
borrow money from the Federal Reserve Banks on behalf of the Borrower identified
above.

    
      	
              Name
      and Title (printed):

            	
              Telephone
      No. and E-Mail Address:

            	
              Signature:

            	
              Borrow10

            	
              Pledge10

            
	
               

               

            	
               

            	
               

            	
               

            	
               

            
	
               

               

            	
               

            	
               

            	
               

            	
               

            
	
               

               

            	
               

            	
               

            	
               

            	
               

            
	
               
      

               

            	 
      	 
      	 
      	 
      
	
               

               

            	
               

            	
               

            	
               

            	
               

            

    

    

    Authorizing Officer (must be
identified by title in Borrower's Authorizing Resolutions):

    
      	
               

              Signature:________________________________

               

               _______________________________________

               (Printed
      Name and Title)

              _______________________________________

               (Telephone)

                ______________________________________

               (E-Mail
      Address)

               

            	
              State
      of _________________________________)

              County
      of _______________________________)

              Subscribed
      and sworn to before me on __________,

              20___,
      by________________________________.

               ________________________________________

                Notary
      Public

               

                (Notary
      Seal)

               

            

    

    

    Secretary's
Certification:

    
      	
              I,
      ____________________, Secretary (or Assistant

              Secretary)
      of the above Borrower do hereby certify

              that
      ________________________________ is a

              ___________________
      of such Borrower.

               

              Signature:
      ____________________________

               

              _____________________________________

               (Printed
      Name and Title)

            	
              State
      of _______________________________)

              County
      of _____________________________)

              Subscribed
      and sworn to before me on _______,

              20___,
      by_______________________________.

               _______________________________________

                Notary
      Public

               

                (Notary
      Seal)

            

    

    

    

      

    

      
      10
Check as appropriate.  For instance, check both if authorized to
pledge and to make borrowing requests on
behalf of the borrower.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
4: APPLICATION PACKAGE FOR BRANCHES OR AGENCIES OF NON-U.S.
BORROWERS

     
 

    Non-U.S.
Borrowers desiring capacity to request to borrow funds from their local Federal
Reserve Bank should submit the following documents, forms of which are included
in this appendix:

     
 

    Letter of
Agreement

    Certificate

    Authorizing
Resolutions

    Official
OC-10 Authorization List

    Legal
Opinion of Foreign Outside Counsel

    Legal
Opinion of United States Outside Counsel

    
 

    Before
submitting such documentation, a Borrower should consult with its Reserve Bank
for any special instructions.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
OF LETTER OF AGREEMENT

    [Letterhead
of the Borrower]

     

     
 

    Date:
______________________________

     

    Federal
Reserve Bank of __________________________________

    Address

    City,
State, Zip

     

    Attention:

     

    In
consideration of being able to request Advances from and incur Indebtedness to
you and in consideration of your making Advances to us through our branch/agency
located in ___________________11 and/or allowing us to incur Indebtedness,
________________12 as a whole (and not merely its offices in the
United States of America) agrees to the provisions of your Operating Circular
No. 10, effective October 15, 2006, as amended and supplemented from time to
time thereafter (“Circular;” capitalized terms used but not defined herein shall
have the meaning specified in the Circular).

     

    [Enclosed
are (1) certified copies of the Certificate, (2) certified copies of the
resolutions that you requested and (3) documents(s) containing the name, title,
and signature of those persons authorized to request Advances from and to pledge
our assets to you.]13

     

    Any
notices required under the Lending Agreement may be directed to the following
department(s):  [list department(s) and address(es)].

     
 

    _____________________________________________

    Full
Legal Name of Borrower12

     
 

    By:  _________________________________________14

     Authorized
signature(s)

     

     

    
      ______________________________________________

      Name(s)

 

    ______________________________________________

    Title(s)

     

    

      

    

    
        
        
          	
                  11

                	
                  Specify
      the branch or agency through which Advances will be
    requested.

                

        

      

        
        
          	
                  12

                	
                  Specify
      the name of the institution (not the branch or
  agency).

                

        

      

        
        
          	
                  13

                	
                  Each
      Borrower should contact the Bank for instructions as to whether this
      paragraph and the referenced documents, forms of which are provided as
      part of this Appendix 4, must be
submitted.

                

        

      

        
        
          	
                  14

                	
                  The
      signatory or signatories should be authorized to sign documents on behalf
      of the Borrower as provided in the Authorizing Resolutions for Borrowers
      required by OC-10.

                

        

      

        

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM OF
CERTIFICATE15

     
 

    The
undersigned, the _______________________  and ________________________
of

                                                                              (Title)                                                        (Title)

    ________________________
(the “Borrower”) hereby certifies, with reference to Operating Circular No.
10,

            
 (Name of Borrower)

    effective
as of October 15, 2006, as amended or supplemented from time to time thereafter
(“OC-10”; terms used

    but not
defined herein have the meaning specified therein), as agreed to by the Borrower
by Letter of Agreement

    dated
_____________ ___, _____ to the Bank as follows:

               (Date
of Letter of Agreement)

     

    
      	
            	
              (a)

            	
              attached
      hereto are true, correct and complete, as of the date of this Certificate,
      copies of (1) the

              official
      document that specifies the official name or names of the Borrower in its
      jurisdiction

              of
      organization (“Organizational Document”) and (2) the official filing in
      each State office in

              the
      United States in which the Borrower is doing business that authorizes the
      Borrower to do

              business
      in that State.

            

       

    

    
      	
               
      

            	
              (b)

            	
              The
      information listed below is true and correct as of the date of this
      certificate:

            

    

     

    
      	 	
              5.           Borrower’s
      current mailing address is:

            

    

    
      	 	
               

            

    

    
      	 	
              6.           Borrower’s
      jurisdiction of organization is16:

            

    

    
      	
               
      

            	 

    

    
      	 	
              7.           Borrower’s
      Organizational number is (indicate n/a if not
  applicable):

            

    

    
      	
               
      

            	 

    

    
      	 	
              8.           Borrower's
      ABA number, if any, is :

            

    

     

    
      	
               
      

            	
              (c)

            	
              [Check
      one]:

            

       

    

    □
Borrower’s name as it appears in the Organizational Document is in Standard
Roman,

     

    □
Borrower’s name as it appears in the Organizational Document is not in Standard
Roman,

    and the
government of Borrower’s home country has official rules for transliterating
words

    into
Standard Roman.  Borrower’s name, transliterated according to such
rules into

    Standard
Roman is ____________________________.

                                         (Insert
official transliterated name)

     

    □
Borrower’s name as it appears in the Organizational Document is not in Standard
Roman,

    and the
government of Borrower’s home country does not have official rules for
transliterating

    words
into Standard Roman.  Borrower’s preferred transliteration of its name
into Standard

    Roman is
_____________________________________.

                                (Insert
preferred transliterated name)

     

    IN
WITNESS WHEREOF, the undersigned has signed this Certificate on ________ __,
2___.

     

    
 

          ___________________________17

          Name:

          Title:

     

    
      ___________________________18

     
Name:

          Title:

     

    

      

    

     

    
      
        	
                15

              	
                Borrowers
      that have previously provided the documents and information requested in
      this Certificate need only certify that the previously provided documents
      and information have not
changed.

              

      

    

      
      
        	
                16

              	
                Please
      specify the home State and State of the branch/agency location, as
      well.  The Bank may file financing statements in the state
      filing office of each such jurisdiction, as well as in the filing office
      in Washington, D.C.

              

      

    

      
      
        	
                17

              	
                One
      signatory should be someone authorized to sign documents on behalf of the
      Borrower as provided in the Authorizing Resolutions for Borrowers required
      by OC-10.

              

      

    

      
      
        	
                18

              	
                The
      other signatory should be in-house or outside counsel to the
      Borrower.

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
OF AUTHORIZING RESOLUTIONS FOR BORROWERS

     
 

    As
evidenced by my signature below, I certify that the following are correct and
complete copies of the resolutions

    duly
adopted on ____________ at a meeting19 of _______________________________________ of
the

                                 
         (Date)                                         (Type
of governing body, e.g. board of directors)

    _________________________
(“Borrower”), a __________________________________________________

     (Official
name of the Borrower
)                              
(Commercial bank, mutual savings bank, savings bank and loan

                                                                            association,
credit union, or other charter type)

    duly
established and operating under the laws of _____________________________, with
its head office located

    at
_____________________________________ in accordance with applicable law and the
Borrower's chartering

    documents.  I
also certify that the resolutions have not been modified, remain in effect,
are
not
in conflict with any

    provisions
of the Borrower’s certificate of incorporation, bylaws, or chartering and/or
licensing statutes or

    requirements,
and are reflected in the minutes of the meeting at which these resolutions were
approved:

     

    
      
        	
                1.

              	
                RESOLVED,
      that the Borrower is authorized to request advance(s) from, incur
      indebtedness, including

                overdrafts,
      to and pledge and grant a security interest in the Borrower’s property,
      whether now owned

                or
      hereafter acquired, to a Federal Reserve
Bank.

              

      

      
         

        
          	
                  2.

                	
                  RESOLVED,
      that the persons with the following titles:

                  ______________________________________________________________________________

                                                                 
            (Exact titles of authorized persons)

                  and
      each of their successors in office, any _________ of whom _________
      authorized to (1) take each of

                                                                    
                                
      (one/two)          
                   (is/are)

                  the actions listed in paragraph (a)-(e) immediately below
      and (2) send the names, titles, and signatures of

                  individuals authorized to take such actions in the name
      and on behalf of the Borrower:20

                

        

         

      

    

    
      	(a) 	
              to
      borrow money from a Federal Reserve Bank and to incur indebtedness to a
      Federal Reserve

              Bank
      on the terms and security that such Federal Reserve Bank
      requires;

            

    

    
      	
               
      

            	 

    

    
      	(b) 	
              to
      discount, rediscount, or sell (with or without the Borrower’s agreement to
      repurchase) and, for

              any
      of those purposes, to endorse and assign notes, drafts, bills of exchange,
      acceptances, other

              bills
      receivable, evidences of indebtedness, and securities, now or hereafter
      acquired by the
      Borrower;

            

    

    
      	
               
      

            	 

    

    
      	(c) 	
              to
      make, execute, and deliver any application, note, agreement, certificate,
      power of attorney, and

              any
      other document that any Federal Reserve Bank requires in connection with
      any transaction

              authorized
      by this resolution;

            

    

    
      	
               
      

            	 

    

    
      	(d) 	
              to
      grant, assign, pledge, and transfer to any Federal Reserve Bank security
      interests in any or all

              property
      of the Borrower, whether now owned or hereafter acquired, and to endorse,
      assign, deliver,

              deposit,
      and/or pledge any of such property to any Federal Reserve Bank as
      collateral to secure

              payment
      or performance of any obligation of the Borrower
      to a Federal Reserve Bank; and

            

    

    
      	
               
      

            	 

    

    
      	(e) 	
              to
      do any and all other acts and things that may be necessary or incidental
      to any transaction

              authorized
      by the relevant resolution, or that may be designed or intended to carry
      out the

              purpose
      of such resolution.

            

    

     

    
      
        	
                3.

              	
                RESOLVED,
      that a Federal Reserve Bank making an extension of credit to the Borrower
      is appointed as

                the
      Borrower’s attorney-in-fact for it and in its place and stead, to endorse,
      assign, transfer and sell,

                set
      over and deliver collateral pledged to such Federal Reserve Bank, and to
      take any other action deemed

                necessary
      or advisable by the Federal Reserve Bank to exercise its rights with
      respect to any advance

                or
      indebtedness owed by the Borrower, in its capacity as secured party,
      including but not limited to

                accepting
      and endorsing payments on loans, preparing and/or filing of any documents
      necessary to

                perfect,
      protect, preserve, or release the interest of the Federal Reserve Bank or
      the Borrower in such

                collateral,
      or compromising disputes or handling insurance issues related to such
      collateral.  The power

                of
      attorney is coupled with an interest and as such is irrevocable, and full
      power of substitution is

                granted
      to the assignee or holder.  The Borrower ratifies any and all
      action authorized herein and taken

                by
      any such Federal Reserve Bank as the Borrower’s
      attorney-in-fact.  The rights, powers, and
authority

                of
      the attorney-in-fact to perform any and all act(s) whatsoever necessary
      remains in full force and effect

                and
      binds the
      Borrower, its legal representatives, successors, and assigns until all
      indebtedness of the

                Borrower
      to any such Federal Reserve Bank has been fully satisfied and
      discharged.

              

      

       

      
        
          	
                  4.

                	
                  RESOLVED,
      that we approve and consent to be bound by the provisions of the Federal
      Reserve Bank of

                  __________’s
      Operating Circular No 10, effective October 15, 2006, as amended and
      supplemented from

                  time
      to time thereafter
(“OC-10”).

                

        

      

    

     

    
      	
              5.

            	
              RESOLVED,
      that the Borrower is authorized and approved to use any record (as such
      term is used in OC-10)

              to
      endorse or pledge to a Reserve Bank the notes and other obligations
      offered as collateral for any advance

              or
      other indebtedness of the Borrower to a Reserve Bank. The record will have
      the full force and effect of a

              manual
      endorsement.

            

    

     

    
      	
              6.

            	
              RESOLVED,
      that these resolutions and the powers and authorizations granted or
      confirmed by them

              continue
      in effect until written notice of revocation is received by each Reserve
      Bank that has relied or

              is
      relying on such resolutions and the Borrower shall continue to be bound
      with respect to any

              outstanding
      obligations and pledges to any Reserve Bank at the time the
      noticeof
      revocation is received

              by
      such Reserve Bank.

            

       

      
        	
                7.

              	
                RESOLVED,
      that a duly certified copy of these resolutions be furnished to each
      Reserve Bank to which the

                Borrower
      applies for an advance or has an account.

              

         

        
          	
                  8.

                	
                  RESOLVED,
      that the Borrower, with respect to any Reserve Bank and the Borrower’s
      obligations to any

                  Reserve
      Bank, to the maximum extent permitted by law, expressly and irrevocably
      waives any immunity

                  that
      the
      Borrower now has or that in the future it may become entitled to, whether
      characterized
      as

                  sovereign
      or otherwise (including, without limitation, immunity from set-off, from
      services
      of process,

                  from
      jurisdiction of any court or tribunal, from attachment in aid of
      execution, from
      attachment prior to

                  the
      entry of a judgment, or from execution upon a judgment), in any legal
      proceeding
      in the United States

                  of
      America, the country where the Borrower is chartered, and the country
      in which the Borrower

                  principally
      conducts its business and expressly submits to jurisdiction
      in Federal or State courts in the

                  United
      Stares of America or in the courts of the Borrower’s
      chartering country, or the country where the

                  Borrower
      principally conducts its business.

                

          
 

        

      

    

    IN
WITNESS WHEREOF, I have hereunto subscribed my name.

     

    _______________________________________

    Signature
of certifying official21

    
_______________________________________

    Name and
Title

     

    _______________________________________

    Date

     
 
EMBASSY
OF THE UNITED STATES OF AMERICA22

     

    [SEAL]

     

    _______________________________________

    City,
Country

     
 

    On
_________, ________________________ personally appeared before me, adequately
identified [himself/herself],

              
  Date        Name of official
signing above

     

    and,
after being duly sworn by me, stated that [he/she] is the
_______________________ of

                                                                                                                                      Title

     

    ____________________________
whose governing body adopted the resolutions set forth in this document
and

      
Official name of foreign Borrower

    
that
[he/she] executed this document by authority of that governing
body.

     
 

    _______________________________________]

    Signature
of U.S. Consul

     

    [SEAL]

    

    

      

    

      
      
        	
                19

              	
                The
      language of this certification should be modified if the resolutions were
      adopted by written consent or
otherwise.

              

      

    

      
      
        	
                20

              	
                If
      certain persons are authorized to undertake only some of these activities,
      e.g., to borrow, but not to pledge on behalf of the Borrower, this
      resolution should be split to so specifically identify who is authorized
      to undertake which
activit(y)(ies).

              

      

    

      
      
        	
                21

              	
                The
      certifying official must be the secretary of the Borrower or another
      person authorized to certify the statements in this document and, in any
      case, may not be a person authorized in Paragraph
  2.

              

      

    

      
      
        	
                22

              	
                If
      appropriate, an apostille may be substituted for this consular
      certificate.  Generally, if this consular certificate is used,
      it must be executed by an ambassador, a minister plenipotentiary, a
      minister extraordinary, a minister resident, a charge d’affaires, a
      consular agent, a consul general, a vice-consul general, a deputy consul
      general, a consul, a vice-consul, a deputy consul, a consular agent, a
      vice-consular agent, a commercial agent, or a vice-commercial agent of the
      United States of America within his or her jurisdiction.  The
      seal or stamp of his or her office or the seal or stamp of the consulate
      or legation to which he or she is attached must be affixed as must the
      seal or stamp of the appropriate U.S.
embassy.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      FORM OF OFFICIAL OC-10 AUTHORIZATION
LIST

      

      
        	
                Routing
      (ABA) No. _____________________

                Page
      ____ of _____

              	
                This
      supersedes our previous Official OC-10 Authorization List:

                          
              
      (circle:)   YES   or   NO

                If
      neither is circled, previous list will also remain in
    effect.

              

      

       

      
        	
                Name
      of Borrower:

              	
                Date:

              
	
                Street
      Address:

              	
                Telephone:

              

      

       

      To the
Federal Reserve Banks:  Below are the names, titles and
signatures of the individuals authorized to pledge collateral to/ request to
borrow money from the Federal Reserve Banks on behalf of the Borrower identified
above.

      
        	
                Name
      and Title (printed):

              	
                Telephone
      No. and E-Mail Address:

              	
                Signature:

              	
                Borrow23

              	
                Pledge23

              
	
                 

                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                 
      

                 

              	 
      	 
      	 
      	 
      
	
                 

                 

              	
                 

              	
                 

              	
                 

              	
                 

              

      

      

      Authorizing Officer (must be
identified by title in Borrower's Authorizing Resolutions):

      
        	
                 

                Signature:________________________________

                 

                 _______________________________________

                 (Printed
      Name and Title)

                _______________________________________

                 (Telephone)

                  ______________________________________

                 (E-Mail
      Address)

                 

              	
                State
      of _________________________________)

                County
      of _______________________________)

                Subscribed
      and sworn to before me on __________,

                20___,
      by________________________________.

                 ________________________________________

                  Notary
      Public

                 

                  (Notary
      Seal)

                 

              

      

      

      Secretary's
Certification:

      
        	
                I,
      ____________________, Secretary (or Assistant

                Secretary)
      of the above Borrower do hereby certify

                that
      ________________________________ is a

                ___________________of
      such Borrower.

                 

                Signature:
      ____________________________

                 

                _____________________________________

                 (Printed
      Name and Title)

              	
                State
      of _______________________________)

                County
      of _____________________________)

                Subscribed
      and sworn to before me on _______,

                20___,
      by_______________________________.

                 _______________________________________

                  Notary
      Public

                 

                  (Notary
      Seal)

              

      

      

       

    

    
      

    

      
      23
Check as appropriate.  For instance, check both if authorized to
pledge and to make borrowing requests on
behalf of the borrower.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM OF OPINION OF FOREIGN OUTSIDE
COUNSEL

    [Letterhead
of the Borrower’s Outside Counsel]

    
 

     

    Date:
_______________________________

    
Federal
Reserve Bank of ___________________________________

    Address

    City,
State, Zip

     

    Attention:

     

    In re:
[Foreign Bank’s name]

     

    In
connection with the authorization for [foreign Borrower's name] (“Borrower”),
through its [city/cities] [branch/agency], to request advances from, incur
indebtedness to, and pledge collateral to any Federal Reserve Bank in the United
States of America, you have requested us to furnish you with an opinion of
counsel regarding the authority of the Borrower and its [city/cities]
[branch/agency] to engage in those activities under the laws of [chartering
jurisdiction].24

     

    We are
legal counsel to the Borrower in [city, country], its place of [incorporation or
chartering or formation] and in that capacity are familiar with its affairs and
the laws of [chartering jurisdiction] affecting it.

     

    
      We are of
the opinion that:

       

      
        
          	
                  (1)

                	
                  The
      Borrower, a [describe type of entity--e.g., corporation], including its
      branches and agencies in the United States of America, has been duly
      [incorporated/chartered/formed] and is validly existing and in good
      standing as a [corporation] under the laws of [chartering
      jurisdiction].

                

        

         

      

      
        
          	
                  (2)

                	
                  Under
      the laws of [chartering jurisdiction], the Borrower, including its
      branches or agencies located in the United States of America, (i) has the
      [corporate] power and authority to execute and deliver the Letter of
      Agreement, dated _____ __, 200_, to  your Operating Circular
      No.10 (“Circular”), effective October 15, 2006, as amended and
      supplemented from time to time thereafter and [list other executed
      agreements] (together the “Lending Agreement”), and to obtain advances
      from, incur indebtedness to, and perform its obligation under the Lending
      Agreement and pledge its collateral and grant security interests in its
      assets to any Federal Reserve Bank, whether now owned or hereafter
      acquired, as collateral security for the payment or performance of any
      obligation of the Borrower to any Federal Reserve Bank and (ii) has duly
      authorized, executed and delivered the Lending Agreement.25

                

        

         

      

    

    
      	
              (3)

            	
              The
      Lending Agreement constitutes the valid and legally binding obligation of
      the Borrower in its entirety as a juridical entity and not merely as its
      branches or agencies located in the United States of
    America.

            

    

     

    
    

    
      	
              (4)

            	
              Regarding
      the Borrower’s obligations to any Federal Reserve Bank, the Borrower and
      its assets are entitled to

              _____________________________________________________________________________________

              List
      immunities which the Borrower’s assets may be entitled to, including
      immunity from set-off, service of process, jurisdiction

              _______________________________________________________________________________________

              of
      any court or tribunal, attachment in aid of execution, attachment prior to
      the entry of a judgment, or execution upon a judgment

              in
      any legal proceeding in the United States of America or the country where
      the Borrower is chartered.  The Borrower has effectively waived
      such immunity/immunities it is now entitled to as well as any other
      immunity that, in the future, it may become entitled to in such
      jurisdictions26 and has effectively submitted to
      jurisdiction in the courts of its chartering
  country.

            

    

     

    
      
        	
                (5)

              	
                The
      resolutions of the governing body of the Institution, dated __________,
      that authorize requesting advances from, incurring indebtedness to, and
      pledging and granting security interests in the Institution's assets to
      any Federal Reserve Bank, have been duly
  adopted.

              

      

       

    

    
      	
              (6)

            	
              The
      chartering jurisdiction [does] [does not] have a system for filing or
      recording a security interest.  [The chartering jurisdiction has
      a system for filing or recording a security interest, and a filing or
      recording has been made on behalf of the Federal Reserve
      Banks.  That filing or recording [is not subject to
      renewal][must be renewed ______________.]27

            

    

     

    
      	
              (7)

            	
              In
      any action or proceeding arising out of or relating to the Lending
      Agreement in any court in [chartering jurisdiction], such court would give
      effect to the governing law provisions of the Lending Agreement which
      provide that the Lending Agreement shall be governed by the law of the
      State of ___________ or Federal laws.  However, if a court were
      to hold that the Lending Agreement is governed by, and is to be construed
      in accordance with the laws of [chartering jurisdiction], the Lending
      Agreement would be, under such laws, enforceable against the Borrower in
      its entirety as a juridical entity and not merely as its branches or
      agencies created in the United States of
  America.

            

       

    

    There are
no other material issues relevant to the issues addressed by this opinion which
we wish to draw to your attention.

    

    

      

    

      
      
        	
                24

              	
                If
      the foreign Borrower principally conducts its business in a jurisdiction
      other than its chartering jurisdiction then the Borrower should also get
      an opinion of outside counsel with respect to Paragraphs 2, 3, 4, and 6
      hereto for the jurisdiction in which the Borrower principally conducts its
      business.  Each reference to the chartering jurisdiction in
      these paragraphs should be replaced with a reference to the country in
      which the Borrower principally conducts its
  business.

              

      

    

      
      
        	
                25

              	
                An
      opinion of counsel from a jurisdiction in which the Borrower principally
      conducts its business should also address whether any office of the
      Borrower licensed to operate in such jurisdiction can pledge its assets to
      secure an Obligation of the Borrower to a Reserve
  Bank

              

      

    

      
      
        	
                26

              	
                If
      there are any limitations on the Borrower’s ability to waive any immunity,
      please identify and discuss those
limitations.

              

      

    

      
      
        	
                27

              	
                Specify
      how frequently the filing or recording must be
  renewed.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM OF OPINION OF UNITED STATES
OUTSIDE COUNSEL

    [Letterhead
of the Borrower’s United States Outside Counsel]

     
 

    Date:  ____________________

     

    Federal
Reserve Bank of _______________________________

    Address

    City,
State, Zip

     

    Attention:

    
In
re:  ___________________________________________

                                               Foreign
bank

               ___________________________________________

                                                      City

     

    You have
requested our opinion on certain matters in connection with the authorization
for _______________

                                                                                                                                                                        Foreign bank’s
name

    (“Borrower”),
through its __________ [branch/agency], to request advances from, incur
indebtedness to, and

                                                    
     City

    pledge
and grant security interests in its assets to, any Federal Reserve
Bank.

      

    We are
legal counsel to the _________ [branch/agency] of the Borrower and in that
capacity are familiar with

                                                     
       City

    its
affairs and the laws of ______________ and the United States of America
affecting it.28 We have

                                                                      State

    investigated
those laws to the extent we believe necessary to render the opinions expressed
in this letter.

      

    We are of
the opinion that:

     

    
      	(1) 	
              The
      Borrower, through its ___________ [branch/agency], is authorized to
      request advances from,

            

    

    
      	
               
      

            	
                                                                     
      City

            

    

    
      	 	
              incur
      indebtedness to, and pledge and grant security interests in its assets to,
      any Federal Reserve Bank.

            

    

    
      	
               
      

            	 

    

    
      	
              (2)

            	
              The
      Borrower and its assets are entitled
      to________________________________________________

            

    

    
      	
               
      

            	
                                                                                           List immunities, if
      any, which the Borrower’s assets may be entitled
  to,

            

    

    _______________________________________________________________________________

    including
immunity from set-off, service of process, jurisdiction of any court or
tribunal, attachment in aid of execution,

    __________________________________________________
in any legal proceeding brought in the

    attachment
prior to the entry of a judgment or execution upon a judgment.

    
      	 	
              Federal
      or State courts in the United States of America.  The Borrower
      has effectively waived such

              immunity/immunities
      it is now entitled to as well as any other immunity that, in the future,
      it may become

              entitled
      to and has effectively submitted to the jurisdiction of the United States
      courts.

            

    

    
    

     

    
      	
              (3)

            	
              The
      agreement of the Borrower to the terms of your Operating Circular No. 10,
      effective October 15, 2006, as

              amended
      from time to time, is valid and binding on the
  Borrower.

            

    

     

    In
rendering our opinion, we have assumed the correctness of the opinion(s)
addressed to you dated

    
      ___________________,
from ______________________________, legal counsel to the Borrower at
its

      
        ___________________________________________________
in ______________________________.

        
                 
 place of incorporation or chartering/principal place of
business                                        
     Country

          

            

          

        

      

    

      
      
        	
                28

              	
                If
      the office is a Federal branch or agency, the reference to State law
      should be omitted.  Opinions of counsel must be obtained for all
      branches and agencies which may seek an Advance or incur
      Indebtedness.

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
5: ANCILLARY AGREEMENTS

     
 

    Form of
Agreement for Third Party Custodian to Hold Collateral

    Form of
Correspondent Credit and Payment Agreement

    Exhibit
1:  Form of Letter Agreement for Obtaining Advances Through
Correspondent

    
 

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
OF AGREEMENT FOR THIRD PARTY CUSTODIAN TO HOLD COLLATERAL29

     

    [Third
Party Custodian Letterhead]

     
 

    [Date]

     

    Federal
Reserve Bank of ______________

    Address

    City,
State, Zip

     

    Re:  [Insert
Borrower’s name](the “Borrower”)

     

    We hereby
acknowledge that the Borrower has entered into an agreement with you and has
granted you a first priority security interest in certain specified assets of
the Borrower and proceeds thereof (such assets and proceeds, together with any
related documentation, “Collateral”).  We further acknowledge that,
pursuant to our agreement with the Borrower, from time to time we receive and
maintain possession of certain of the Collateral, which are presently kept at
our premises located at [insert address of facilities].  We further
acknowledge that we have received and hold possession of the Collateral for your
benefit until we receive notice from you that your security interest has been
terminated.

     

    We hereby
waive, surrender and relinquish any rights in or to the Collateral, including,
without limitation, any security interests or liens provided by applicable law
to which we may otherwise be entitled.  We further acknowledge and
agree that we have not acquired any rights in the Collateral sufficient to
transfer an interest or grant a security interest in or to the Collateral or
will not exercise any such rights with respect to Collateral consisting of
negotiable instruments.

     

    We
further acknowledge that, according to the terms of your agreement with the
Borrower, you have the right to inspect the Collateral, and, upon default, the
right to remove and take possession of the Collateral.  We agree (1)
to permit you to exercise these rights and to permit you access to the
Collateral in order to exercise these rights at your request, (2) to copy you on
any reports pertaining to the Collateral that we provide to the Borrower, (3) to
ignore instructions from the Borrower at your request, and (4) to follow any
other of your instructions with regard to the Collateral to the extent the
instructions would have been within the scope of the Borrower’s power as set
forth in our agreement with the Borrower, all without first receiving the
consent or permission of the Borrower. We further agree that, at your request,
all representations, warranties and covenants, and agreements regarding access
to the Collateral or information about the Collateral, made by us in our
agreement with the Borrower shall inure to your benefit, without the consent of
the Borrower.

     

    Sincerely,

     

    [insert
third party custodian name]

     

    By:  _________________________

    Name:

    Title

     

    Cc:
[insert Borrower name]

    
Borrower
confirms and agrees to the foregoing.

     

    [insert
Borrower name]

    
By:  ___________________________

    Name:

    Title:

    

      

    

      
      29 If
the third-party custodian is an affiliate of the Borrower, it must execute this
Agreement.  In all cases, prior to asking its third-party custodian to
sign this agreement, a Borrower should consult with the Reserve Bank, which,
depending upon the specifics of the third-party custodial arrangement, may
require additions to or modifications of this form of
agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
OF CORRESPONDENT CREDIT AND PAYMENT AGREEMENT

     
 

    1.0           SCOPE

     

    
      	
               
      

            	
              1.1

            	
              This
      Appendix sets forth the agreement (“Correspondent Agreement”) among the
      Bank, a Borrower, and another depository institution that maintains an
      Account and is designated by the Borrower as its Correspondent
      (“Correspondent”) under which the Bank may make an Advance to and obtain
      repayment from the Borrower through the
  Correspondent.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              1.2 

            	
              For
      the Borrower to receive an Advance under the Correspondent Agreement, the
      Borrower and the Correspondent must obtain the prior approval of the Bank
      and execute a letter of agreement in the form of Exhibit 1 of this
      Appendix.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              1.3 

            	
              The
      Correspondent Agreement supplements the Lending Agreement and the terms of
      the Lending Agreement are incorporated herein.  Capitalized
      terms in the Correspondent Agreement have the same meaning as defined in
      the Circular.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              1.4 

            	
              In
      the event of a conflict between the other provisions of the Lending
      Agreement and the provisions of the Correspondent Agreement, the
      provisions of the Correspondent Agreement control.  The terms of
      the Correspondent Agreement shall also prevail over any inconsistent terms
      in any other account agreement between the Correspondent’s Reserve Bank
      and the Correspondent regarding the operation of the Correspondent’s
      Account.

            

    

     

    2.0           ADVANCE

     

    
      	
               
      

            	
              2.1 

            	
              If
      the Borrower applies for an Advance, the Borrower authorizes the
      Correspondent to provide any information requested by the Bank regarding
      the Borrower’s credit position and any extension of credit made by the
      Correspondent to the Borrower.  The Correspondent shall provide
      such information promptly.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              2.2 

            	
              Any
      credit entry made to the Correspondent’s Account by the Bank for the
      benefit of the Borrower constitutes an Advance to the Borrower in
      accordance with the terms of the Lending Agreement, and such Advance shall
      be held in trust by the Correspondent for the Borrower and shall not be
      subject to any lien or right of set-off by the
    Correspondent.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              2.3

            	
              The
      Borrower is solely responsible for notifying the Correspondent of any
      incoming credit to the Correspondent’s Account for an Advance on the day
      the Advance is requested.  The Borrower’s failure to give such
      notice does not affect the rights and obligations of the Bank and the
      Correspondent with respect to each other under this Correspondent
      Agreement.

            

    

     
 3.0           NOTICE OF DEBIT AND CREDIT

     

    
      	
               
      

            	
              3.1 

            	
              The
      Bank shall send to the Borrower and the Correspondent an advice of any
      credit or debit posted to the Correspondent’s Account made pursuant to the
      Correspondent Agreement by the next Business Day following the credit or
      debit.  The advice to the Correspondent shall be sent to an
      employee identified by the Correspondent in Exhibit 1.  If the
      Correspondent does not furnish a list of employees to the Bank, or if in
      the Bank’s opinion it is not feasible to direct a notice to a named
      individual due to the medium used (e.g., a computer-generated notice),
      then the Bank may give an advice or notice required under this Agreement
      to any officer of the
Correspondent.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              3.2 

            	
              Any
      credit or debit posted to the Correspondent’s Account by the Bank under
      this Correspondent Agreement constitutes authority for the Correspondent,
      consistent with applicable law, to credit or debit, respectively, the
      Borrower’s account on its books for the amount of the credit or
      debit.

            

    

     

    4.0           REPAYMENT 

     

    
      	
               
      

            	
              4.1

            	
              An
      Advance Repayment Amount is due in accordance with Paragraph 5.1 of the
      Credit and Security Terms.  This obligation remains
      notwithstanding nonreceipt of the Advance by the Borrower after the
      Advance is credited to the Correspondent’s
  Account.

            

    

    

    
      	
               
      

            	
              4.2

            	
              Any
      funds deposited with the Correspondent by the Borrower for the purpose of
      repaying an Advance Repayment Amount are held in trust for the Bank and
      are not subject to any lien or right of set-off by the
      Correspondent.

            

    

    

    
      	
               
      

            	
              4.3

            	
              Except
      as otherwise agreed by the Bank in writing, the Borrower and the
      Correspondent authorize the Bank, or the appropriate Reserve Bank, to
      debit the Correspondent’s Account for the Advance Repayment Amount in full
      when the Advance Repayment Amount is due.  The Borrower shall
      ensure that sufficient funds are made available to the Correspondent to
      pay this amount.  Unless otherwise agreed, the Borrower shall
      promptly reimburse the Correspondent for the amount of any debit made to
      the Correspondent’s Account
hereunder.

            

    

    

    
      	
               
      

            	
              4.4

            	
              Unless
      the Correspondent in writing irrevocably waives all rights to contest a
      debit to its Account to pay the Borrower’s Advance Repayment Amount, the
      repayment is considered provisional and the Bank retains an unimpaired
      security interest in Collateral Pledged by the Borrower to secure the
      Advance Repayment Amount until the Correspondent is deemed to have
      unconditionally approved the debit under Paragraph
  5.

            

    

     

    5.0           CORRESPONDENT’S APPROVAL OF A DEBIT

     

    
      	
               
      

            	
              5.1

            	
              If,
      after making a good faith effort, the Correspondent has not received the
      full amount of the Advance Repayment Amount from the Borrower, then the
      Correspondent may instruct the Bank, up until one hour before the Advance
      Repayment Amount is due, not to debit the Correspondent’s Account for the
      amount that the Correspondent has not
received.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              5.2

            	
              In
      addition, if the date and time an Advance Repayment Amount is due is
      accelerated pursuant to Paragraph 5.1 of the Credit and Security Terms and
      becomes immediately payable, and if the Correspondent is not provided with
      advance notice of said acceleration, then the Correspondent may instruct
      the Bank to reverse the debit by giving the Bank notice before the close
      of Fedwire on the day the Advance Repayment Amount becomes immediately
      payable.

            

    

    

    
      	
               
      

            	
              5.3

            	
              Upon
      receiving such an instruction, the Bank will not debit the Correspondent’s
      Account for the amount the Correspondent states it has not received from
      the Borrower, or will reverse the debit, as the case may
      be.  The Bank is not required to inquire into the basis for or
      validity of any such instruction before acting upon
  it.

            

    

    

    
      	
               
      

            	
              5.4

            	
              Upon
      receiving such an instruction from the Correspondent, the Advance
      Repayment Amount is immediately due and payable and the Bank may exercise
      any remedies available to it, including any remedies available under the
      Lending Agreement, to obtain full repayment of the Advance Repayment
      Amount.

            

    

    

    
      	
               
      

            	
              5.5

            	
              If
      the Correspondent fails to instruct the Bank not to debit the
      Correspondent’s Account before the Advance Repayment Amount is due as
      provided in Paragraph 5.1, or to reverse the debit as provided in
      Paragraph 5.2, the Correspondent is deemed to have unconditionally
      approved the debit and the Correspondent has no right to refuse or contest
      the debit.

            

    

    

    
      	
               
      

            	
              5.6

            	
              If
      the Correspondent receives funds from the Borrower to pay the Advance
      Repayment Amount after the Correspondent instructed the Bank to not debit
      the Correspondent’s Account, then the Correspondent shall promptly revoke
      its instruction.

            

    

    
      	
               
      

            	 

    

    6.0           MISCELLANEOUS 

     

    
      	
               
      

            	
              6.1

            	
              Unless
      otherwise agreed by the Bank, the time zone of the Bank’s head office is
      used to determine whether any deadline set forth herein has been
      met.

            

    

    

    
      	
               
      

            	
              6.2

            	
              No
      delay or failure by the Bank to exercise any right or remedy accruing upon
      any Event of Default shall impair any right or remedy, waive any default
      or operate as an acquiescence to the Event of Default, or affect any
      subsequent default of the same or of a different
  nature.

            

    

    

    
      	
               
      

            	
              6.3

            	
              The
      Bank or the Correspondent’s Reserve Bank may record telephone
      communications between it and the Correspondent or the Borrower regarding
      any debit or credit to the Correspondent’s Account made
      hereunder.

            

    

    

    
      	
               
      

            	
              6.4

            	
              The
      Correspondent Agreement is binding on the receivers, administrators,
      successors, assigns and legal representatives of the Borrower and the
      Correspondent, and inures to the benefit of the Bank and its successors
      and assigns.  The rights and obligations hereunder, however, may
      not be assigned by the Borrower or the Correspondent without the prior
      written consent of the Bank.

            

    

     

    7.0           AMENDMENT 

     

    
      	
               
      

            	
              7.1

            	
              The
      Bank, in its sole discretion, may amend this Correspondent Agreement
      without prior notice at any time.  Any amendment applies only to
      a transaction under this Correspondent Agreement made on or after the
      effective date of the amendment.

            

    

     

    8.0           NOTICE 

     

    
      	
               
      

            	
              8.1

            	
              Unless
      otherwise specified in the Correspondent Agreement or by the Bank, all
      notices required under the Correspondent Agreement shall
      be:  (a) sent by first-class mail, postage prepaid; (b)
      personally delivered; or (c) sent by telecopy, facsimile, or electronic
      means to a number or electronic address identified in writing by the
      intended recipient (and, in such case, confirmed by prepaid, first-class
      mail).  If sent by the Bank, the notice must be addressed as
      indicated to the Bank in writing by the Borrower or the
      Correspondent.  If sent by the Borrower or the Correspondent,
      the notice must be addressed to the credit function at the Bank’s head
      office.

            

    

    
      	
               
      

            	 

    

    
      	
               
      

            	
              8.2

            	
              The
      Borrower or the Correspondent is deemed to have delivered any notice
      required hereunder when the notice is received by the credit function at
      the Bank’s head office.  The Bank is deemed to have delivered
      any notice required hereunder when the notice is sent.  If the
      notice is sent by the Bank only via first-class mail, however, the notice
      is effective three days after it is deposited in any United States postal
      box.

            

    

     
 9.0           TERMINATION 

     

    
      	
               
      

            	
              9.1

            	
              Any
      party may terminate this Correspondent Agreement by giving written notice
      to the other parties.  The rights and liabilities of the parties
      under the Correspondent Agreement survive any termination of it until such
      time as all Advance Repayment Amounts owed by the Borrower hereunder and
      the Correspondent’s obligations to the Bank under this Agreement have been
      satisfied in full.

            

    

     

    10.0           GOVERNING LAW 

     

    
      	
               
      

            	
              10.1

            	
              The
      Correspondent Agreement, including any Advance or any other transaction
      entered into pursuant thereto, is governed by Federal law and, to the
      extent not inconsistent therewith, the law of the State in which the
      Bank’s head office is located, excluding that State’s law regarding
      conflicts of law.

            

    

     

    11.0           EFFECTIVE
DATE/STATUS OF PREVIOUS AGREEMENTS

     

    
      	
               
      

            	
              11.1

            	
              The
      Correspondent Agreement is effective when the Bank receives the letter of
      agreement in the form of Exhibit 1 to this Appendix.  At that
      time, the Correspondent Agreement supersedes any and all previous
      agreements, if any, relating to a Reserve Bank making any Advance to and
      obtaining payment from the Borrower through the Correspondent.
      

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
1

     Letter
of Agreement

    To
Correspondent Credit and Payment Agreement

     

    EXHIBIT
1:FORM OF LETTER OF AGREEMENT TO

    CORRESPONDENT CREDIT AND PAYMENT
AGREEMENT [Letterhead of Depository Institution]

     
 

    Date:  _____________________________

     

    Federal
Reserve Bank of ____________________________

    Address

    City,
State, Zip

     

    Attention:

     

    In order
to request advances from you through a correspondent and in order to make
payments to you through a

    correspondent,
we agree to the provisions of the Correspondent Credit and
Payment Agreement, currently an

    ancillary
agreement appended to your Operating Circular No. 10, effective October 15,
2006, as amended and

    supplemented
from time to time thereafter.  We designate __________________________________
as the

    Correspondent
under that agreement.

     
 

    ________________________________________

    Name of
depository institution

    
 

    By:   __________________________________30

            
Authorized signature(s)

     
 

    ________________________________________

    Names(s)

    
 

    ________________________________________

    Title(s)

    
We agree
to act as Correspondent for __________________________________________ and, as
such, to

                               Name
of depository institution

    be bound
by the provision of the Correspondent Credit and Payment Agreement, currently an
ancillary

    agreement
attached
to your Operating Circular No. 10, effective October 15, 2006, as amended
from time
to time

    ("Correspondent
Agreement").  Pursuant to paragraph 3.1 of the Correspondent
Agreement,
we are furnishing

    below a
list of individuals to whom the Federal Reserve Bank of _____________________________
may

    provide
an advice of credit or debit entries made under the Correspondent
Agreement.  These individuals are

    also
authorized to instruct the Reserve Bank not to debit our
account or to reverse a debit in accordance with

    Paragraph
5 of the Correspondent Agreement. We may
amend this list from time to time.

    
 

    _____________________________________

    Name of
Correspondent

     
 

    By:           __________________________________

                
Authorized signature(s)

    
  

    ________________________________________

    Names(s)

    
 

    ________________________________________

    Title(s)

    
 

    ________________________________________

    Date

     
 

    Individuals
permitted to receive notification of credit or debit entries described in the
Correspondent Credit and

    Payment
Agreement and authorized to instruct the Reserve Bank not to debit the
Correspondent Account
or to

    reverse a
debit:  [list between 3 and 5 employees]

    
  

    
      	
              Name

               

            	 
      	
              Title

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

     

    

      

        
        
          	
                  30

                	
                  The
      signatory or signatories should be authorized to sign documents on behalf
      of the Borrower as provided in the Authorizing Resolutions for Borrowers
      required by OC-10.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]