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Exhibit 10.5    
  

AMENDED AND RESTATED DECLARATION

OF TRUST  

 by and among  

 STATE STREET BANK AND TRUST COMPANY

OF CONNECTICUT, NATIONAL ASSOCIATION,

as Institutional Trustee,  

 COAST BANCORP,

as Sponsor,  

 and

JACK C. WAUCHOPE, THOMAS J. SHERMAN and JACK ROBASCIOTTI

as Administrators,  

 Dated as of September 26, 2002  

  

 
  TABLE OF CONTENTS    
  

	 
	 
	 	Page

	ARTICLE I INTERPRETATION AND DEFINITIONS	 	1
	 	Section 1.1.	Definitions	 	1
	

ARTICLE II ORGANIZATION	
 	

6
	 	Section 2.1.	Name	 	6
	 	Section 2.2.	Office	 	6
	 	Section 2.3.	Purpose	 	6
	 	Section 2.4.	Authority	 	6
	 	Section 2.5.	Title to Property of the Trust	 	7
	 	Section 2.6.	Powers and Duties of the Institutional Trustee and the Administrators	 	7
	 	Section 2.7.	Prohibition of Actions by the Trust and the Institutional Trustee	 	10
	 	Section 2.8.	Powers and Duties of the Institutional Trustee	 	10
	 	Section 2.9.	Certain Duties and Responsibilities of the Institutional Trustee and Administrators	 	11
	 	Section 2.10.	Certain Rights of Institutional Trustee	 	13
	 	Section 2.11.	Execution of Documents	 	14
	 	Section 2.12.	Not Responsible for Recitals or Issuance of Securities	 	15
	 	Section 2.13.	Duration of Trust	 	15
	 	Section 2.14.	Mergers	 	15
	

ARTICLE III SPONSOR	
 	

16
	 	Section 3.1.	Sponsor's Purchase of Common Securities	 	16
	 	Section 3.2.	Responsibilities of the Sponsor	 	16
	 	Section 3.3.	Expenses	 	16
	 	Section 3.4.	Right to Proceed	 	17
	

ARTICLE IV INSTITUTIONAL TRUSTEE AND ADMINISTRATORS	
 	

17
	 	Section 4.1.	Institutional Trustee; Eligibility	 	17
	 	Section 4.2.	Administrators	 	18
	 	Section 4.3.	Appointment, Removal and Resignation of Institutional Trustee and Administrators	 	18
	 	Section 4.4.	Institutional Trustee Vacancies	 	19
	 	Section 4.5.	Effect of Vacancies	 	19
	 	Section 4.6.	Meetings of the Institutional Trustee and the Administrators	 	19
	 	Section 4.7.	Delegation of Power	 	20
	 	Section 4.8.	Conversion, Consolidation or Succession to Business	 	20
	

ARTICLE V DISTRIBUTIONS	
 	

20
	 	Section 5.1.	Distributions	 	20
	

ARTICLE VI ISSUANCE OF SECURITIES	
 	

20
	 	Section 6.1.	General Provisions Regarding Securities	 	20
	 	Section 6.2.	Paying Agent, Transfer Agent and Registrar	 	21
	 	Section 6.3.	Form and Dating	 	21
	 	Section 6.4.	Mutilated, Destroyed, Lost or Stolen Certificates	 	22
	 	Section 6.5.	Temporary Securities	 	22
	 	Section 6.6.	Cancellation	 	22
	 	Section 6.7.	Rights of Holders; Waivers of Past Defaults	 	22

i

 

	

ARTICLE VII DISSOLUTION AND TERMINATION OF TRUST	
 	

24
	 	Section 7.1.	Dissolution and Termination of Trust	 	24
	

ARTICLE VIII TRANSFER OF INTERESTS	
 	

24
	 	Section 8.1.	General	 	24
	 	Section 8.2.	Transfer Procedures and Restrictions	 	25
	 	Section 8.3.	Deemed Security Holders	 	27
	

ARTICLE IX LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS	
 	

27
	 	Section 9.1.	Liability	 	27
	 	Section 9.2.	Exculpation	 	28
	 	Section 9.3.	Fiduciary Duty	 	28
	 	Section 9.4.	Indemnification	 	28
	 	Section 9.5.	Outside Businesses	 	30
	 	Section 9.6.	Compensation; Fee	 	31
	

ARTICLE X ACCOUNTING	
 	

31
	 	Section 10.1.	Fiscal Year	 	31
	 	Section 10.2.	Certain Accounting Matters	 	31
	 	Section 10.3.	Banking	 	31
	 	Section 10.4.	Withholding	 	32
	

ARTICLE XI AMENDMENTS AND MEETINGS	
 	

32
	 	Section 11.1.	Amendments	 	32
	 	Section 11.2.	Meetings of the Holders of Securities; Action by Written Consent	 	33
	

ARTICLE XII REPRESENTATIONS OF INSTITUTIONAL TRUSTEE	
 	

34
	 	Section 12.1.	Representations and Warranties of Institutional Trustee	 	34
	

ARTICLE XIII MISCELLANEOUS	
 	

35
	 	Section 13.1.	Notices	 	35
	 	Section 13.2.	Governing Law	 	36
	 	Section 13.3.	Intention of the Parties	 	36
	 	Section 13.4.	Headings	 	36
	 	Section 13.5.	Successors and Assigns	 	36
	 	Section 13.6.	Partial Enforceability	 	36
	 	Section 13.7.	Counterparts	 	36
	

Annex I	

Terms of Securities	
 	

 
	Exhibit A-1	Form of Capital Security Certificate	 	 
	Exhibit A-2	Form of Common Security Certificate	 	 
	Exhibit B	Specimen of Initial Debenture	 	 
	Exhibit C	Placement Agreement	 	 
	 	 	 	 

ii

  

 
 

AMENDED AND RESTATED
  
    DECLARATION OF TRUST
  
    OF
  
    COAST BANCORP STATUTORY TRUST I    
  

September 26, 2002  

        AMENDED AND RESTATED DECLARATION OF TRUST ("Declaration") dated and effective as of September 26, 2002, by
the Institutional Trustee (as defined herein), the Administrators (as defined herein), the Sponsor (as defined herein) and by the holders, from time to time, of undivided beneficial interests in the
Trust (as defined herein) to be issued pursuant to this Declaration; 

        WHEREAS,
the Institutional Trustee, the Administrators and the Sponsor established Coast Bancorp Statutory Trust I (the "Trust"), a
statutory trust under the Statutory Trust Act (as defined herein) pursuant to a Declaration of Trust dated as of August 28, 2002 (the "Original
Declaration"), and a Certificate of Trust filed with the Secretary of State of the State of Connecticut on August 28, 2002, for the sole purpose of issuing and selling
certain securities representing undivided beneficial interests in the assets of the Trust and investing the proceeds thereof in certain debentures of the Debenture Issuer (as defined herein); 

        WHEREAS,
as of the date hereof, no interests in the Trust have been issued; and 

        WHEREAS,
the Institutional Trustee, the Administrators and the Sponsor, by this Declaration, amend and restate each and every term and provision of the Original Declaration; 

        NOW,
THEREFORE, it being the intention of the parties hereto to continue the Trust as a statutory trust under the Statutory Trust Act and that this Declaration constitutes the governing
instrument of such statutory trust, the Institutional Trustee declares that all assets contributed to the Trust will be held in trust for the benefit of the holders, from time to time, of the
securities representing undivided beneficial interests in the assets of the Trust issued hereunder, subject to the provisions of this Declaration. The parties hereto hereby agree as follows: 

 
 

ARTICLE I
  
    INTERPRETATION AND DEFINITIONS    
  

        Section 1.1.    Definitions.    Unless the context otherwise requires: 

        (a)  Capitalized
terms used in this Declaration but not defined in the preamble above have the respective meanings assigned to them in this Section 1.1; 

        (b)  a
term defined anywhere in this Declaration has the same meaning throughout; 

        (c)  all
references to "the Declaration" or "this Declaration" are to this Declaration as modified, supplemented or amended from time to time; 

        (d)  all
references in this Declaration to Articles and Sections and Annexes and Exhibits are to Articles and Sections of and Annexes and Exhibits to this Declaration unless
otherwise specified; and 

        (e)  a
reference to the singular includes the plural and vice versa. 

        "Additional Interest" has the meaning set forth in the Indenture. 

        "Administrative Action" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Administrators" means each of Jack C. Wauchope, Thomas J. Sherman and Jack Robasciotti, solely in such Person's capacity as Administrator
of the Trust created and continued hereunder and not 

1

 

in such Person's individual capacity, or such Administrator's successor in interest in such capacity, or any successor appointed as herein provided. 

        "Affiliate" has the same meaning as given to that term in Rule 405 of the Securities Act or any successor rule thereunder. 

        "Authorized Officer" of a Person means any Person that is authorized to bind such Person. 

        "Bankruptcy Event" means, with respect to any Person: 

        (a)  a
court having jurisdiction in the premises shall enter a decree or order for relief in respect of such Person in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial
part of its property, or ordering the winding-up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or 

        (b)  such
Person shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an
order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of such Person of any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become
due. 

        "Business Day" means any day other than Saturday, Sunday or any other day on which banking institutions in New York City or Hartford,
Connecticut are permitted or required by any applicable law to close. 

        "Capital Securities" has the meaning set forth in paragraph 1(a) of Annex I. 

        "Capital Security Certificate" means a definitive Certificate in fully registered form representing a Capital Security substantially in
the form of Exhibit A-1. 

        "Capital Treatment Event" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Certificate" means any certificate evidencing Securities. 

        "Closing Date" has the meaning set forth in the Placement Agreement. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor legislation. 

        "Common Securities" has the meaning set forth in paragraph 1(b) of Annex I. 

        "Common Security Certificate" means a definitive Certificate in fully registered form representing a Common Security substantially in the
form of Exhibit A-2. 

        "Company Indemnified Person" means (a) any Administrator; (b) any Affiliate of any Administrator; (c) any officers,
directors, shareholders, members, partners, employees, representatives or agents of any Administrator; or (d) any officer, employee or agent of the Trust or its Affiliates. 

        "Corporate Trust Office" means the office of the Institutional Trustee at which the corporate trust business of the Institutional Trustee
shall, at any particular time, be principally administered, which office at the date of execution of this Declaration is located at 225 Asylum Street, Goodwin Square, Hartford, Connecticut 06103. 

        "Coupon Rate" has the meaning set forth in paragraph 2(a) of Annex I. 

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        "Covered Person" means: (a) any Administrator, officer, director, shareholder, partner, member, representative, employee or agent
of (i) the Trust or (ii) any of the Trust's Affiliates; and (b) any Holder of Securities. 

        "Creditor" has the meaning set forth in Section 3.3. 

        "Debenture Issuer" means Coast Bancorp, a California corporation, in its capacity as issuer of the Debentures under the Indenture. 

        "Debenture Trustee" means State Street Bank and Trust Company of Connecticut, National Association, as trustee under the Indenture until a
successor is appointed thereunder, and thereafter means such successor trustee. 

        "Debentures" means the Floating Rate Junior Subordinated Deferrable Interest Debentures due 2032 to be issued by the Debenture Issuer
under the Indenture. 

        "Defaulted Interest" has the meaning set forth in the Indenture. 

        "Determination Date" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Direct Action" has the meaning set forth in Section 2.8(d). 

        "Distribution" means a distribution payable to Holders of Securities in accordance with Section 5.1. 

        "Distribution Payment Date" has the meaning set forth in paragraph 2(b) of Annex I. 

        "Distribution Period" has the meaning set forth in paragraph 2(a) of Annex I. 

        "Distribution Rate" means, for the period beginning on (and including) the date of original issuance and ending on (but excluding)
December 26, 2002, 5.220%, and for the period beginning on (and including) December 26, 2002 and thereafter, the Coupon Rate. 

        "Event of Default" means any one of the following events (whatever the reason for such event and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

        (a)  the
occurrence of an Indenture Event of Default; or 

        (b)  default
by the Trust in the payment of any Redemption Price of any Security when it becomes due and payable; or 

        (c)  default
in the performance, or breach, in any material respect, of any covenant or warranty of the Institutional Trustee in this Declaration (other than those specified
in clause (a) or (b) above) and continuation of such default or breach for a period of 60 days after there has been given, by registered or certified mail to the Institutional
Trustee and to the Sponsor by the Holders of at least 25% in aggregate liquidation amount of the outstanding Capital Securities, a written notice specifying such default or breach and requiring it to
be remedied and stating that such notice is a "Notice of Default" hereunder; or 

        (d)  the
occurrence of a Bankruptcy Event with respect to the Institutional Trustee if a successor Institutional Trustee has not been appointed within 90 days thereof. 

        "Extension Period" has the meaning set forth in paragraph 2(b) of Annex I. 

        "Federal Reserve" has the meaning set forth in paragraph 3 of Annex I. 

        "Fiduciary Indemnified Person" shall mean the Institutional Trustee, any Affiliate of the Institutional Trustee and any officers,
directors, shareholders, members, partners, employees, representatives, custodians, nominees or agents of the Institutional Trustee. 

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        "Fiscal Year" has the meaning set forth in Section 10.1. 

        "Guarantee" means the guarantee agreement to be dated as of the Closing Date, of the Sponsor in respect of the Capital Securities. 

        "Holder" means a Person in whose name a Certificate representing a Security is registered, such Person being a beneficial owner within the
meaning of the Statutory Trust Act. 

        "Indemnified Person" means a Company Indemnified Person or a Fiduciary Indemnified Person. 

        "Indenture" means the Indenture dated as of the Closing Date, between the Debenture Issuer and the Debenture Trustee, and any indenture
supplemental thereto pursuant to which the Debentures are to be issued, as such Indenture and any supplemental indenture may be amended, supplemented or otherwise modified from time to time. 

        "Indenture Event of Default" means an "Event of Default" as defined in the Indenture. 

        "Institutional Trustee" means the Trustee meeting the eligibility requirements set forth in Section 4.1. 

        "Interest" means any interest due on the Debentures including any Additional Interest and Defaulted Interest. 

        "Investment Company" means an investment company as defined in the Investment Company Act. 

        "Investment Company Act" means the Investment Company Act of 1940, as amended from time to time, or any successor legislation. 

        "Investment Company Event" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Liquidation" has the meaning set forth in paragraph 3 of Annex I. 

        "Liquidation Distribution" has the meaning set forth in paragraph 3 of Annex I. 

        "Majority in liquidation amount of the Securities" means Holder(s) of outstanding Securities voting together as a single class or, as the
context may require, Holders of outstanding Capital Securities or
Holders of outstanding Common Securities voting separately as a class, who are the record owners of more than 50% of the aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are determined) of all outstanding Securities of the relevant class. 

        "Maturity Date" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Officers' Certificates" means, with respect to any Person, a certificate signed by two Authorized Officers of such Person. Any Officers'
Certificate delivered with respect to compliance with a condition or covenant providing for it in this Declaration shall include: 

        (a)  a
statement that each officer signing the Certificate has read the covenant or condition and the definitions relating thereto; 

        (b)  a
brief statement of the nature and scope of the examination or investigation undertaken by each officer in rendering the Certificate; 

        (c)  a
statement that each such officer has made such examination or investigation as, in such officer's opinion, is necessary to enable such officer to express an informed
opinion as to whether or not such covenant or condition has been complied with; and 

        (d)  a
statement as to whether, in the opinion of each such officer, such condition or covenant has been complied with. 

        "OTS" has the meaning set forth in paragraph 3 of Annex I. 

4

 

        "Paying Agent" has the meaning specified in Section 6.2. 

        "Person" means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 

        "Placement Agreement" means the Placement Agreement relating to the offering and sale of Capital Securities in the form of
Exhibit C. 

        "Property Account" has the meaning set forth in Section 2.8(c). 

        "Pro Rata" has the meaning set forth in paragraph 8 of Annex I. 

        "Quorum" means a majority of the Administrators or, if there are only two Administrators, both of them. 

        "Redemption Date" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Redemption/Distribution Notice" has the meaning set forth in paragraph 4(e) of Annex I. 

        "Redemption Price" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Registrar" has the meaning set forth in Section 6.2. 

        "Responsible Officer" means, with respect to the Institutional Trustee, any officer within the Corporate Trust Office of the Institutional
Trustee, including any vice-president, any assistant vice-president, any assistant secretary, the treasurer, any assistant treasurer, any trust officer or other officer of the
Corporate Trust Office of the Institutional Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred because of that officer's knowledge of and familiarity with the particular subject. 

        "Restricted Securities Legend" has the meaning set forth in Section 8.2(b). 

        "Rule 3a-5" means Rule 3a-5 under the Investment Company Act. 

        "Rule 3a-7" means Rule 3a-7 under the Investment Company Act. 

        "Securities" means the Common Securities and the Capital Securities. 

        "Securities Act" means the Securities Act of 1933, as amended from time to time, or any successor legislation. 

        "Special Event" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Special Redemption Date" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Special Redemption Price" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Sponsor" means Coast Bancorp, a California corporation, or any successor entity in a merger, consolidation or amalgamation, in its
capacity as sponsor of the Trust. 

        "Statutory Trust Act" means Chapter 615 of Title 34 of the Connecticut General Statutes, Sections 500, et seq. as may be amended from time
to time. 

        "Successor Entity" has the meaning set forth in Section 2.14(b). 

        "Successor Institutional Trustee" has the meaning set forth in Section 4.3(a). 

        "Successor Securities" has the meaning set forth in Section 2.14(b). 

        "Super Majority" has the meaning set forth in paragraph 5(b) of Annex I. 

5

 

        "Tax Event" has the meaning set forth in paragraph 4(a) of Annex I. 

        "10% in liquidation amount of the Securities" means Holder(s) of outstanding Securities voting together as a single class or, as the
context may require, Holders of outstanding Capital Securities or Holders of outstanding Common Securities voting separately as a class, who are the record owners of 10% or more of the aggregate
liquidation amount (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to the date upon which the voting percentages are
determined) of all outstanding Securities of the relevant class. 

        "3-Month LIBOR" has the meaning set forth in paragraph 4(a) of Annex I. 

        "Transfer Agent" has the meaning set forth in Section 6.2. 

        "Treasury Regulations" means the income tax regulations, including temporary and proposed regulations, promulgated under the Code by the
United States Treasury, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

        "Trust Property" means (a) the Debentures, (b) any cash on deposit in, or owing to, the Property Account and (c) all
proceeds and rights in respect of the foregoing and any other property and assets for the time being held or deemed to be held by the Institutional Trustee pursuant to the trusts of this Declaration. 

        "U.S. Person" means a United States Person as defined in Section 7701(a)(30) of the Code. 

 
 

ARTICLE II
  
    ORGANIZATION    
  

        Section 2.1.    Name.    The Trust is named "Coast Bancorp Statutory Trust I," as such
name may be modified from time to time by the Administrators following written notice to the Holders of the Securities. The Trust's activities may be conducted under the name of the Trust or any other
name deemed advisable by the Administrators. 

        Section 2.2.    Office.    The address of the principal office of the Trust is c/o
State Street Bank and Trust Company of Connecticut, National Association, 225 Asylum Street, Goodwin Square, Hartford, Connecticut 06103. On at least 10 Business Days written notice to the Holders of
the Securities, the Administrators may designate another principal office, which shall be in a state of the United States or in the District of Columbia. 

        Section 2.3.    Purpose.    The exclusive purposes and functions of the Trust are
(a) to issue and sell the Securities representing undivided beneficial interests in the assets of the Trust, (b) to invest the gross proceeds from such sale to acquire the Debentures,
(c) to facilitate direct investment in the assets of the Trust through issuance of the Common Securities and the Capital Securities and (d) except as otherwise limited herein, to engage
in only those other activities necessary or incidental thereto. The Trust shall not borrow money, issue debt or reinvest proceeds derived from investments, pledge any of its assets, or otherwise
undertake (or permit to be undertaken) any activity that would cause the Trust not to be classified for United States federal income tax purposes as a grantor trust. 

        Section 2.4.    Authority.    Except as specifically provided in this Declaration, the
Institutional Trustee shall have exclusive and complete authority to carry out the purposes of the Trust. An action taken by the Institutional Trustee in accordance with its powers shall constitute
the act of and serve to bind the Trust. In dealing with the Institutional Trustee acting on behalf of the Trust, no Person shall be required to inquire into the authority of the Institutional Trustee
to bind the Trust. Persons dealing with the Trust are entitled to rely conclusively on the power and authority of the Institutional Trustee as set forth in this Declaration. The Administrators shall
have only those ministerial duties set forth herein with respect to accomplishing the purposes of the Trust and are not intended to be trustees or 

6

 

fiduciaries with respect to the Trust or the Holders. The Institutional Trustee shall have the right, but shall not be obligated except as provided in Section 2.6, to perform those duties
assigned to the Administrators. 

        Section 2.5.    Title to Property of the Trust.    Except as provided in
Section 2.8 with respect to the Debentures and the Property Account or as otherwise provided in this Declaration, legal title to all assets of the Trust shall be vested in the Trust. The
Holders shall not have legal title to any part of the assets of the Trust, but shall have an undivided beneficial interest in the assets of the Trust. 

        Section 2.6.    Powers and Duties of the Institutional Trustee and the
Administrators.    

        (a)  The
Institutional Trustee and the Administrators shall conduct the affairs of the Trust in accordance with the terms of this Declaration. Subject to the limitations set
forth in paragraph (b) of this Section, and in accordance with the following provisions (i) and (ii), the Institutional Trustee and the Administrators shall have the authority to enter
into all transactions and agreements determined by the Institutional Trustee to be appropriate in exercising the authority, express or implied, otherwise granted
to the Institutional Trustee or the Administrators, as the case may be, under this Declaration, and to perform all acts in furtherance thereof, including without limitation, the following: 

        (i)    Each
Administrator shall have the power and authority to act on behalf of the Trust with respect to the following matters: 

        (A)  the
issuance and sale of the Securities; 

        (B)  to
cause the Trust to enter into, and to execute and deliver on behalf of the Trust, such agreements as may be necessary or desirable in connection with the purposes and
function of the Trust, including agreements with the Paying Agent; 

        (C)  ensuring
compliance with the Securities Act, applicable state securities or blue sky laws; 

        (D)  the
sending of notices (other than notices of default), and other information regarding the Securities and the Debentures to the Holders in accordance with this
Declaration; 

        (E)  the
consent to the appointment of a Paying Agent, Transfer Agent and Registrar in accordance with this Declaration, which consent shall not be unreasonably withheld or
delayed; 

        (F)  execution
and delivery of the Securities in accordance with this Declaration; 

        (G)  execution
and delivery of closing certificates pursuant to the Placement Agreement and the application for a taxpayer identification number; 

        (H)  unless
otherwise determined by the Holders of a Majority in liquidation amount of the Securities or as otherwise required by the Statutory Trust Act, to execute on
behalf of the Trust (either acting alone or together with any or all of the Administrators) any documents that the Administrators have the power to execute pursuant to this Declaration; 

        (I)  the
taking of any action incidental to the foregoing as the Institutional Trustee may from time to time determine is necessary or advisable to give effect to the terms
of this Declaration for the benefit of the Holders (without consideration of the effect of any such action on any particular Holder); 

        (J)  to
establish a record date with respect to all actions to be taken hereunder that require a record date be established, including Distributions, voting rights,
redemptions and exchanges, and to issue relevant notices to the Holders of Capital Securities and Holders of Common Securities as to such actions and applicable record dates; and 

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        (K)  to
duly prepare and file all applicable tax returns and tax information reports that are required to be filed with respect to the Trust on behalf of the Trust. 

        (ii)  As
among the Institutional Trustee and the Administrators, the Institutional Trustee shall have the power, duty and authority to act on behalf of the Trust with respect
to the following matters: 

        (A)  the
establishment of the Property Account; 

        (B)  the
receipt of the Debentures; 

        (C)  the
collection of interest, principal and any other payments made in respect of the Debentures in the Property Account; 

        (D)  the
distribution through the Paying Agent of amounts owed to the Holders in respect of the Securities; 

        (E)  the
exercise of all of the rights, powers and privileges of a holder of the Debentures; 

        (F)  the
sending of notices of default and other information regarding the Securities and the Debentures to the Holders in accordance with this Declaration; 

        (G)  the
distribution of the Trust Property in accordance with the terms of this Declaration; 

        (H)  to
the extent provided in this Declaration, the winding up of the affairs of and liquidation of the Trust and the preparation, execution and filing of the certificate of
cancellation with the Secretary of State of the State of Connecticut; 

        (I)  after
any Event of Default (provided that such Event of Default is not by or with respect to the Institutional Trustee)
the taking of any action incidental to the foregoing as the Institutional Trustee may from time to time determine is necessary or advisable to give effect to the terms of this Declaration and protect
and conserve the Trust Property for the benefit of the Holders (without consideration of the effect of any such action on any particular Holder); and 

        (J)  to
take all action that may be necessary for the preservation and the continuation of the Trust's valid existence, rights, franchises and privileges as a statutory trust
under the laws of the State of Connecticut and of each other jurisdiction in which such existence is necessary to protect the limited liability of the Holders of the Capital Securities or to enable
the Trust to effect the purposes for which the Trust was created. 

        (iii)  The
Institutional Trustee shall have the power and authority to act on behalf of the Trust with respect to any of the duties, liabilities, powers or the authority of
the Administrators set forth in Section 2.6(a)(i)(D), (E) and (F) herein but shall not have a duty to do any such act unless specifically requested to do so in writing by the
Sponsor, and shall then be fully protected in acting pursuant to such written request; and in the event of a conflict between the action of the Administrators and the action of the Institutional
Trustee, the action of the Institutional Trustee shall prevail. 

        (b)  So
long as this Declaration remains in effect, the Trust (or the Institutional Trustee or Administrators acting on behalf of the Trust) shall not undertake any business,
activities or transaction except as expressly provided herein or contemplated hereby. In particular, neither the Institutional Trustee nor the Administrators may cause the Trust to (i) acquire
any investments or engage in any activities not authorized by this Declaration, (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise dispose of any of the
Trust Property or interests therein, including to Holders, except as expressly provided herein, (iii) take any action that would reasonably be expected (x) to cause 

8

 

the Trust to fail or cease to qualify as a "grantor trust" for United States federal income tax purposes or (y) to require the trust to register as an Investment Company under the Investment
Company Act, (iv) incur any indebtedness for borrowed money or issue any other debt or (v) take or consent to any action that would result in the placement of a lien on any of the Trust
Property. The Institutional Trustee shall, at the sole cost and expense of the Trust, defend all claims and demands of all Persons at any time claiming any lien on any of the Trust Property adverse to
the interest of the Trust or the Holders in their capacity as Holders. 

        (c)  In
connection with the issuance and sale of the Capital Securities, the Sponsor shall have the right and responsibility to assist the Trust with respect to, or effect on
behalf of the Trust, the following (and
any actions taken by the Sponsor in furtherance of the following prior to the date of this Declaration are hereby ratified and confirmed in all respects): 

        (i)    the
taking of any action necessary to obtain an exemption from the Securities Act; 

        (ii)  the
determination of the States in which to take appropriate action to qualify or register for sale all or part of the Capital Securities and the determination of any
and all such acts, other than actions which must be taken by or on behalf of the Trust, and the advice to the Administrators of actions they must take on behalf of the Trust, and the preparation for
execution and filing of any documents to be executed and filed by the Trust or on behalf of the Trust, as the Sponsor deems necessary or advisable in order to comply with the applicable laws of any
such States in connection with the sale of the Capital Securities; 

        (iii)  the
negotiation of the terms of, and the execution and delivery of, the Placement Agreement providing for the sale of the Capital Securities; and 

        (iv)  the
taking of any other actions necessary or desirable to carry out any of the foregoing activities. 

        (d)  Notwithstanding
anything herein to the contrary, the Administrators and the Holders of a Majority in liquidation amount of the Common Securities are authorized and
directed to conduct the affairs of the Trust and to operate the Trust so that the Trust will not (i) be deemed to be an Investment Company required to be registered under the Investment Company
Act, and (ii) fail to be classified as a "grantor trust" for United States federal income tax purposes. The Administrators and the Holders of a Majority in liquidation amount of the Common
Securities shall not take any action inconsistent with the treatment of the Debentures as indebtedness of the Debenture Issuer for United States federal income tax purposes. In this connection, the
Administrators and the Holders of a Majority in liquidation amount of the Common Securities are authorized to take any action, not inconsistent with applicable laws, the Certificate of Trust or this
Declaration, as amended from time to time, that each of the Administrators and the Holders of a Majority in liquidation amount of the Common Securities determines in their discretion to be necessary
or desirable for such purposes. 

        (e)  All
expenses incurred by the Administrators or the Institutional Trustee pursuant to this Section 2.6 shall be reimbursed by the Sponsor, and the Institutional
Trustee and the Administrators shall have no obligations with respect to such expenses. 

        (f)    The
assets of the Trust shall consist of the Trust Property. 

        (g)  Legal
title to all Trust Property shall be vested at all times in the Institutional Trustee (in its capacity as such) and shall be held and administered by the
Institutional Trustee and the Administrators for the benefit of the Trust in accordance with this Declaration. 

        (h)  If
the Institutional Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Declaration and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Institutional Trustee or to such Holder, then and in every such case the Sponsor, the Institutional Trustee and the Holders shall,
subject to any 

9

 

determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Institutional Trustee and the Holders shall
continue as though no such proceeding had been instituted. 

        Section 2.7.    Prohibition of Actions by the Trust and the Institutional Trustee.    

        (a)  The
Trust shall not, and the Institutional Trustee shall cause the Trust not to, engage in any activity other than as required or authorized by this Declaration. In
particular, the Trust shall not and the Institutional Trustee shall cause the Trust not to: 

        (i)    invest
any proceeds received by the Trust from holding the Debentures, but shall distribute all such proceeds to Holders of the Securities pursuant to the terms of this
Declaration and of the Securities; 

        (ii)  acquire
any assets other than as expressly provided herein; 

        (iii)  possess
Trust Property for other than a Trust purpose; 

        (iv)  make
any loans or incur any indebtedness other than loans represented by the Debentures; 

        (v)  possess
any power or otherwise act in such a way as to vary the Trust assets or the terms of the Securities in any way whatsoever other than as expressly provided
herein; 

        (vi)  issue
any securities or other evidences of beneficial ownership of, or beneficial interest in, the Trust other than the Securities; 

        (vii)  carry
on any "trade or business" as that phrase is used in the Code; or 

        (viii)  other
than as provided in this Declaration (including Annex I), (A) direct the time, method and place of exercising any trust or power conferred upon the
Debenture Trustee with respect to the Debentures, (B) waive any past default that is waivable under the Indenture, (C) exercise any right to rescind or annul any declaration that the
principal of all the Debentures shall be due and payable, or (D) consent to any amendment, modification or termination of the Indenture or the Debentures where such consent shall be required
unless the Trust shall have received a written opinion of counsel to the effect that such modification will not cause the Trust to cease to be classified as a "grantor trust" for United States federal
income tax purposes. 

        Section 2.8.    Powers and Duties of the Institutional Trustee.    

        (a)  The
legal title to the Debentures shall be owned by and held of record in the name of the Institutional Trustee in trust for the benefit of the Trust and the Holders of
the Securities. The right, title and interest of the Institutional Trustee to the Debentures shall vest automatically in each Person who may hereafter be appointed as Institutional Trustee in
accordance with Section 4.3. Such vesting and cessation of title shall be effective whether or not conveyancing documents with regard to the Debentures have been executed and delivered. 

        (b)  The
Institutional Trustee shall not transfer its right, title and interest in the Debentures to the Administrators. 

        (c)  The
Institutional Trustee shall: 

        (i)    establish
and maintain a segregated non-interest bearing trust account (the "Property Account") in the name
of and under the exclusive control of the Institutional Trustee, and maintained in the Institutional Trustee's trust department, on behalf of the Holders of the Securities and, upon the receipt of
payments of funds made in respect of the Debentures held by the Institutional Trustee, deposit such funds into the Property Account and make payments, or cause the Paying Agent to make payments, to
the Holders of the Capital Securities and Holders of 

10

 

the Common Securities from the Property Account in accordance with Section 5.1. Funds in the Property Account shall be held uninvested until disbursed in accordance with this Declaration; 

        (ii)  engage
in such ministerial activities as shall be necessary or appropriate to effect the redemption of the Capital Securities and the Common Securities to the extent
the Debentures are redeemed or mature; and 

        (iii)  upon
written notice of distribution issued by the Administrators in accordance with the terms of the Securities, engage in such ministerial activities as shall be
necessary or appropriate to effect the distribution of the Debentures to Holders of Securities upon the occurrence of certain circumstances pursuant to the terms of the Securities. 

        (d)  The
Institutional Trustee may bring or defend, pay, collect, compromise, arbitrate, resort to legal action with respect to, or otherwise adjust claims or demands of or
against, the Trust which arises out of or in connection with an Event of Default of which a Responsible Officer of the Institutional Trustee has actual knowledge or arises out of the Institutional
Trustee's duties and obligations under this Declaration; provided, however, that if an Event of Default has occurred and is continuing and such event is
attributable to the failure of the Debenture Issuer to pay interest or principal on the Debentures on the date such interest or principal is otherwise payable (or in the case of redemption, on the
redemption date), then a Holder of the Capital Securities may directly institute a proceeding for enforcement of payment to such Holder of the principal of or interest on the Debentures having a
principal amount equal to the aggregate liquidation amount of the Capital Securities of such Holder (a "Direct Action") on or after the respective due
date specified in the Debentures. In connection with such Direct Action, the rights of the Holders of the Common Securities will be subrogated to the rights of such Holder of the Capital Securities to
the extent of any payment made by the Debenture Issuer to such Holder of the Capital Securities in such Direct Action; provided, however, that no Holder
of the Common Securities may exercise such right of subrogation so long as an Event of Default with respect to the Capital Securities has occurred and is continuing. 

        (e)  The
Institutional Trustee shall continue to serve as a Trustee until either: 

        (i)    the
Trust has been completely liquidated and the proceeds of the liquidation distributed to the Holders of the Securities pursuant to the terms of the Securities and
this Declaration; or 

        (ii)  a
Successor Institutional Trustee has been appointed and has accepted that appointment in accordance with Section 4.3. 

        (f)    The
Institutional Trustee shall have the legal power to exercise all of the rights, powers and privileges of a Holder of the Debentures under the Indenture and, if an
Event of Default occurs and is continuing, the Institutional Trustee may, for the benefit of Holders of the Securities, enforce its rights as holder of the Debentures subject to the rights of the
Holders pursuant to this Declaration (including Annex I) and the terms of the Securities. 

        The
Institutional Trustee must exercise the powers set forth in this Section 2.8 in a manner that is consistent with the purposes and functions of the Trust set out in
Section 2.3, and the Institutional Trustee shall not take any action that is inconsistent with the purposes and functions of the Trust set out in Section 2.3. 

        Section 2.9.    Certain Duties and Responsibilities of the Institutional Trustee and
Administrators.    

        (a)  The
Institutional Trustee, before the occurrence of any Event of Default and after the curing or waiving of all such Events of Default that may have occurred, shall
undertake to perform only such duties as are specifically set forth in this Declaration and no implied covenants shall be read into this Declaration against the Institutional Trustee. In case an Event
of Default has occurred (that has not been cured or waived pursuant to Section 6.7), the Institutional Trustee shall exercise such of the rights and powers vested in it by this Declaration, and
use the same degree of care and skill in their exercise, 

11

 

as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. 

        (b)  The
duties and responsibilities of the Institutional Trustee and the Administrators shall be as provided by this Declaration. Notwithstanding the foregoing, no provision
of this Declaration shall require the Institutional Trustee or Administrators to expend or risk their own funds or otherwise incur any financial liability in the performance of any of their duties
hereunder, or in the exercise of any of their rights or powers if it shall have reasonable grounds to believe that repayment of such funds or adequate protection against such risk of liability is not
reasonably assured to it. Whether or not therein expressly so provided, every provision of this Declaration relating to the conduct or affecting the liability of or affording protection to the
Institutional Trustee or Administrators shall be subject to the provisions of this Article. Nothing in this Declaration shall be construed to relieve an Administrator or the Institutional Trustee from
liability for its own negligent act, its own negligent failure to act, or its own willful misconduct. To the extent that, at law or in equity, the Institutional Trustee or an Administrator has duties
and liabilities relating to the Trust or to the Holders, the Institutional Trustee or such Administrator shall not be liable to the Trust or to any Holder for the Institutional Trustee's or such
Administrator's good faith reliance on the provisions of this Declaration. The provisions of this Declaration, to the extent that they restrict the duties and liabilities of the Administrators or the
Institutional Trustee otherwise existing at law or in equity, are agreed by the Sponsor and the Holders to replace such other duties and liabilities of the Administrators or the Institutional Trustee. 

        (c)  All
payments made by the Institutional Trustee or a Paying Agent in respect of the Securities shall be made only from the revenue and proceeds from the Trust Property
and only to the extent that there shall be sufficient revenue or proceeds from the Trust Property to enable the Institutional Trustee or a Paying Agent to make payments in accordance with the terms
hereof. Each Holder, by its acceptance of a Security, agrees that it will look solely to the revenue and proceeds from the Trust Property to the extent legally available for distribution to it as
herein provided and that the Institutional Trustee and the Administrators are not personally liable to it for any amount distributable in respect of any Security or for any other liability in respect
of any Security. This Section 2.9(c) does not limit the liability of the Institutional Trustee expressly set forth elsewhere in this Declaration. 

        (d)  The
Institutional Trustee shall not be liable for its own acts or omissions hereunder except as a result of its own negligent action, its own negligent failure to act,
or its own willful misconduct, except that: 

        (i)    the
Institutional Trustee shall not be liable for any error of judgment made in good faith by an Authorized Officer of the Institutional Trustee, unless it shall be
proved that the Institutional Trustee was negligent in ascertaining the pertinent facts; 

        (ii)  the
Institutional Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the
Holders of not less than a Majority in liquidation amount of the Capital Securities or the Common Securities, as applicable, relating to the time, method and place of conducting any proceeding for any
remedy available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee under this Declaration; 

        (iii)  the
Institutional Trustee's sole duty with respect to the custody, safekeeping and physical preservation of the Debentures and the Property Account shall be to deal
with such property in a similar manner as the Institutional Trustee deals with similar property for its fiduciary accounts generally, subject to the protections and limitations on liability afforded
to the Institutional Trustee under this Declaration; 

        (iv)  the
Institutional Trustee shall not be liable for any interest on any money received by it except as it may otherwise agree in writing with the Sponsor; and money held
by the Institutional 

12

 

Trustee need not be segregated from other funds held by it except in relation to the Property Account maintained by the Institutional Trustee pursuant to Section 2.8(c)(i) and except to
the extent otherwise required by law; and 

        (v)  the
Institutional Trustee shall not be responsible for monitoring the compliance by the Administrators or the Sponsor with their respective duties under this
Declaration, nor shall the Institutional Trustee be liable for any default or misconduct of the Administrators or the Sponsor. 

        Section 2.10.    Certain Rights of Institutional Trustee.    Subject to the provisions
of Section 2.9: 

        (a)  the
Institutional Trustee may conclusively rely and shall fully be protected in acting or refraining from acting in good faith upon any resolution, opinion of counsel,
certificate, written representation of
a Holder or transferee, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, appraisal, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent or presented by the proper party or parties; 

        (b)  if
(i) in performing its duties under this Declaration, the Institutional Trustee is required to decide between alternative courses of action, (ii) in
construing any of the provisions of this Declaration, the Institutional Trustee finds the same ambiguous or inconsistent with any other provisions contained herein, or (iii) the Institutional
Trustee is unsure of the application of any provision of this Declaration, then, except as to any matter as to which the Holders of Capital Securities are entitled to vote under the terms of this
Declaration, the Institutional Trustee may deliver a notice to the Sponsor requesting the Sponsor's written instructions as to the course of action to be taken and the Institutional Trustee shall take
such action, or refrain from taking such action, as the Institutional Trustee shall be instructed in writing, in which event the Institutional Trustee shall have no liability except for its own
negligence or willful misconduct; 

        (c)  any
direction or act of the Sponsor or the Administrators contemplated by this Declaration shall be sufficiently evidenced by an Officers' Certificate; 

        (d)  whenever
in the administration of this Declaration, the Institutional Trustee shall deem it desirable that a matter be proved or established before undertaking,
suffering or omitting any action hereunder, the Institutional Trustee (unless other evidence is herein specifically prescribed) may request and conclusively rely upon an Officers' Certificate as to
factual matters which, upon receipt of such request, shall be promptly delivered by the Sponsor or the Administrators; 

        (e)  the
Institutional Trustee shall have no duty to see to any recording, filing or registration of any instrument (including any financing or continuation statement or any
filing under tax or securities laws) or any rerecording, refiling or reregistration thereof; 

        (f)    the
Institutional Trustee may consult with counsel of its selection (which counsel may be counsel to the Sponsor or any of its Affiliates) and the advice of such counsel
shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon and in accordance with such advice;
the Institutional Trustee shall have the right at any time to seek instructions concerning the administration of this Declaration from any court of competent jurisdiction; 

        (g)  the
Institutional Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Declaration at the request or direction of any of the
Holders pursuant to this Declaration, unless such Holders shall have offered to the Institutional Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or direction; provided, that nothing contained in this Section 2.10(g)
shall be taken to
relieve the Institutional Trustee, subject to Section 2.9(b), upon the occurrence of an Event of Default, to exercise such of the rights and powers vested in it by this Declaration, and use the
same 

13

 

degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs; 

        (h)  the
Institutional Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, debenture, note or other evidence of indebtedness or other paper or document, unless requested in writing to do so by one or more Holders, but
the Institutional Trustee may make such further inquiry or investigation into such facts or matters as it may see fit; 

        (i)    the
Institutional Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents or attorneys and
the Institutional Trustee shall not be responsible for any misconduct or negligence on the part of or for the supervision of, any such agent or attorney appointed with due care by it hereunder; 

        (j)    whenever
in the administration of this Declaration the Institutional Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or
right or taking any other action hereunder the Institutional Trustee (i) may request instructions from the Holders of the Capital Securities which instructions may only be given by the Holders
of the same proportion in liquidation amount of the Capital Securities as would be entitled to direct the Institutional Trustee under the terms of the Capital Securities in respect of such remedy,
right or action, (ii) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (iii) shall be fully protected in acting in
accordance with such instructions; 

        (k)  except
as otherwise expressly provided in this Declaration, the Institutional Trustee shall not be under any obligation to take any action that is discretionary under
the provisions of this Declaration; 

        (l)    when
the Institutional Trustee incurs expenses or renders services in connection with a Bankruptcy Event, such expenses (including the fees and expenses of its counsel)
and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors rights generally; 

        (m)  the
Institutional Trustee shall not be charged with knowledge of an Event of Default unless a Responsible Officer of the Institutional Trustee obtains actual knowledge
of such event or the Institutional Trustee receives written notice of such event from any Holder, the Sponsor or the Debenture Trustee; 

        (n)  any
action taken by the Institutional Trustee or its agents hereunder shall bind the Trust and the Holders of the Securities, and the signature of the Institutional
Trustee or its agents alone shall be sufficient and effective to perform any such action and no third party shall be required to inquire as to the authority of the Institutional Trustee to so act or
as to its compliance with any of the terms and provisions of this Declaration, both of which shall be conclusively evidenced by the Institutional Trustee's or its agent's taking such action; and 

        (o)  no
provision of this Declaration shall be deemed to impose any duty or obligation on the Institutional Trustee to perform any act or acts or exercise any right, power,
duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be illegal, or in which the Institutional Trustee shall be unqualified or incompetent in accordance with applicable
law, to perform any such act or acts, or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Institutional Trustee shall be construed to be a duty. 

        Section 2.11.    Execution of Documents.    Unless otherwise determined in writing by
the Institutional Trustee, and except as otherwise required by the Statutory Trust Act, the Institutional Trustee, or any one or more of the Administrators, as the case may be, is authorized to
execute on behalf of the Trust any documents that the Institutional Trustee or the Administrators, as the case may be, have the power and authority to execute pursuant to Section 2.6. 

14

 

        Section 2.12.    Not Responsible for Recitals or Issuance of Securities.    The
recitals contained in this Declaration and the Securities shall be taken as the statements of the Sponsor, and the Institutional Trustee does not assume any responsibility for their correctness. The
Institutional Trustee makes no representations as to the value or condition of the property of the Trust or any part thereof. The Institutional Trustee makes no representations as to the validity or
sufficiency of this Declaration, the Debentures or the Securities. 

        Section 2.13.    Duration of Trust.    The Trust, unless earlier dissolved pursuant to
the provisions of Article VII hereof, shall be in existence for 35 years from the Closing Date. 

        Section 2.14.    Mergers.    

        (a)  The
Trust may not consolidate, amalgamate, merge with or into, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to
any corporation or other body, except as described in this Section 2.14(b) and (c) and except in connection with the liquidation of the Trust and the distribution of the Debentures to
Holders of Securities pursuant to Section 7.1(a)(iv) of the Declaration or Section 4 of Annex I. 

        (b)  The
Trust may, with the consent of the Institutional Trustee and without the consent of the Holders of the Capital Securities, consolidate, amalgamate, merge with or
into, or be replaced by a trust organized as such under the laws of any state; provided that: 

        (i)    if
the Trust is not the surviving entity, such successor entity (the "Successor Entity") either: 

        (A)  expressly
assumes all of the obligations of the Trust under the Securities; or 

        (B)  substitutes
for the Securities other securities having substantially the same terms as the Securities (the "Successor
Securities") so that the Successor Securities rank the same as the Securities rank with respect to Distributions and payments upon Liquidation, redemption and otherwise; 

        (ii)  the
Sponsor expressly appoints a trustee of the Successor Entity that possesses substantially the same powers and duties as the Institutional Trustee as the Holder of
the Debentures; 

        (iii)  such
merger, consolidation, amalgamation or replacement does not adversely affect the rights, preferences and privileges of the Holders of the Securities (including
any Successor Securities) in any material respect; 

        (iv)  the
Institutional Trustee receives written confirmation from Moody's Investor Services, Inc. and any other nationally recognized statistical rating organization
that rates securities issued by the initial purchaser of the Capital Securities that it will not reduce or withdraw the rating of any such securities because of such merger, conversion, consolidation,
amalgamation or replacement; 

        (v)  such
Successor Entity has a purpose substantially identical to that of the Trust; 

        (vi)  prior
to such merger, consolidation, amalgamation or replacement, the Trust has received an opinion of a nationally recognized independent counsel to the Trust
experienced in such matters to the effect that: 

        (A)  such
merger, consolidation, amalgamation or replacement does not adversely affect the rights, preferences and privileges of the Holders of the Securities (including any
Successor Securities) in any material respect; 

        (B)  following
such merger, consolidation, amalgamation or replacement, neither the Trust nor the Successor Entity will be required to register as an Investment Company; and 

15

 

        (C)  following
such merger, consolidation, amalgamation or replacement, the Trust (or the Successor Entity) will continue to be classified as a "grantor trust" for United
States federal income tax purposes; 

        (vii)  the
Sponsor guarantees the obligations of such Successor Entity under the Successor Securities at least to the extent provided by the Guarantee; 

        (viii)  the
Sponsor owns 100% of the common securities of any Successor Entity; and 

        (ix)  prior
to such merger, consolidation, amalgamation or replacement, the Institutional Trustee shall have received an Officers' Certificate of the Administrators and an
opinion of counsel, each to the effect that all conditions precedent under this Section 2.14(b) to such transaction have been satisfied. 

        (c)  Notwithstanding
Section 2.14(b), the Trust shall not, except with the consent of Holders of 100% in aggregate liquidation amount of the Securities, consolidate,
amalgamate, merge with or into, or be replaced by any other entity or permit any other entity to consolidate, amalgamate, merge with or into, or replace it if such consolidation, amalgamation, merger
or replacement would cause the Trust or Successor Entity to be classified as other than a grantor trust for United States federal income tax purposes. 

 
 

ARTICLE III
  
    SPONSOR    
  

        Section 3.1.    Sponsor's Purchase of Common Securities.    On the Closing Date, the
Sponsor will purchase all of the Common Securities issued by the Trust in an amount at least equal to 3% of the capital of the Trust, at the same time as the Capital Securities are sold. 

        Section 3.2.    Responsibilities of the Sponsor.    In connection with the issue and
sale of the Capital Securities, the Sponsor shall have the exclusive right and responsibility to engage in, or direct the Administrators to engage in, the following activities: 

        (a)  to
determine the States in which to take appropriate action to qualify or register for sale all or part of the Capital Securities and to do any and all such acts, other
than actions which must be taken by the Trust, and advise the Trust of actions it must take, and prepare for execution and filing any documents to be executed and filed by the Trust, as the Sponsor
deems necessary or advisable in order to comply with the applicable laws of any such States; and 

        (b)  to
negotiate the terms of and/or execute on behalf of the Trust, the Placement Agreement and other related agreements providing for the sale of the Capital Securities. 

        Section 3.3.    Expenses.    In connection with the offering, sale and issuance of the
Debentures to the Trust and in connection with the sale of the Securities by the Trust, the Sponsor, in its capacity as Debenture Issuer, shall: 

        (a)  pay
all reasonable costs and expenses relating to the offering, sale and issuance of the Debentures, including compensation of the Debenture Trustee under the Indenture
in accordance with the provisions of the Indenture; 

        (b)  be
responsible for and shall pay all debts and obligations (other than with respect to the Securities) and all costs and expenses of the Trust (including, but not
limited to, costs and expenses relating to the organization, maintenance and dissolution of the Trust), the offering, sale and issuance of the Securities (including fees to the placement agents in
connection therewith), the fees and expenses (including reasonable counsel fees and expenses) of the Institutional Trustee and the Administrators, the costs and expenses relating to the operation of
the Trust, including, without 

16

 

limitation, costs and expenses of accountants, attorneys, statistical or bookkeeping services, expenses for printing and engraving and computing or accounting equipment, Paying Agents, Registrars,
Transfer Agents, duplicating, travel and telephone and other telecommunications expenses and costs and expenses incurred in connection with the acquisition, financing, and disposition of Trust assets
and the enforcement by the Institutional Trustee of the rights of the Holders; and 

        (c)  pay
any and all taxes (other than United States withholding taxes attributable to the Trust or its assets) and all liabilities, costs and expenses with respect to such
taxes of the Trust. 

        The
Sponsor's obligations under this Section 3.3 shall be for the benefit of, and shall be enforceable by, any Person to whom such debts, obligations, costs, expenses and taxes
are owed (a "Creditor") whether or not such Creditor has received notice hereof. Any such Creditor may enforce the Sponsor's obligations under this
Section 3.3 directly against the Sponsor and the Sponsor irrevocably waives any right or remedy to require that any such Creditor take any action against the Trust or any other Person before
proceeding against the Sponsor. The Sponsor agrees to execute such additional agreements as may be necessary or desirable in order to give full effect to the provisions of this Section 3.3. 

        Section 3.4.    Right to Proceed.    The Sponsor acknowledges the rights of Holders to
institute a Direct Action as set forth in Section 2.8(d) hereto. 

 
 

ARTICLE IV
  
    INSTITUTIONAL TRUSTEE AND ADMINISTRATORS    
  

        Section 4.1.    Institutional Trustee; Eligibility.    

        (a)  There
shall at all times be one Institutional Trustee which shall: 

        (i)    not
be an Affiliate of the Sponsor; 

        (ii)  not
offer or provide credit or credit enhancement to the Trust; and 

        (iii)  be
a banking corporation or trust company organized and doing business under the laws of the United States of America or any state thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000.00), and subject to supervision or
examination by Federal, state, or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the supervising or
examining authority referred to above, then for the purposes of this Section 4.1(a)(iii), the combined capital and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. 

        (b)  If
at any time the Institutional Trustee shall cease to be eligible to so act under Section 4.1(a), the Institutional Trustee shall immediately resign in the
manner and with the effect set forth in Section 4.3(a). 

        (c)  If
the Institutional Trustee has or shall acquire any "conflicting interest" within the meaning of Section 310(b) of the Trust Indenture Act of 1939, as amended,
the Institutional Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to this Declaration. 

        (d)  The
initial Institutional Trustee shall be State Street Bank and Trust Company of Connecticut, National Association. 

17

  

        Section 4.2.    Administrators.    Each Administrator shall be a U.S. Person,

21 years of age or older and authorized to bind the Sponsor. The initial Administrators shall be Jack C. Wauchope, Thomas J. Sherman and Jack Robasciotti. There shall at all times be at least
one Administrator. Except where a requirement for action by a specific number of Administrators is expressly set forth in this Declaration and except with respect to any action the taking of which is
the subject of a meeting of the Administrators, any action required or permitted to be taken by the Administrators may be taken by, and any power of the Administrators may be exercised by, or with the
consent of, any one such Administrator. 

        Section 4.3.    Appointment, Removal and Resignation of Institutional Trustee and
Administrators.    

        (a)  Notwithstanding
anything to the contrary in this Declaration, no resignation or removal of the Institutional Trustee and no appointment of a Successor Institutional
Trustee pursuant to this Article shall become effective until the acceptance of appointment by the Successor Institutional Trustee in accordance with the applicable requirements of this
Section 4.3. 

        Subject
to the immediately preceding paragraph, the Institutional Trustee may resign at any time by giving written notice thereof to the Holders of the Securities and by appointing a
Successor Institutional Trustee. Upon the resignation of the Institutional Trustee, the Institutional Trustee shall appoint a successor by requesting from at least three Persons meeting the
eligibility requirements, its expenses and charges to serve as the successor Institutional Trustee on a form provided by the Administrators, and selecting the Person who agrees to the lowest expense
and charges (the "Successor Institutional Trustee"). If the instrument of acceptance by the Successor Institutional Trustee required by this
Section 4.3 shall not have been delivered to the Institutional Trustee within 60 days after the giving of such notice of resignation or delivery of the instrument of removal, the
Institutional Trustee may petition, at the expense of the Trust, any Federal, state or District of Columbia court of competent jurisdiction for the appointment of a Successor Institutional Trustee.
Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Institutional Trustee. The Institutional Trustee shall have no liability for the selection
of such successor pursuant to this Section 4.3. 

        The
Institutional Trustee may be removed by the act of the Holders of a Majority in liquidation amount of the Capital Securities, delivered to the Institutional Trustee (in its
individual capacity and on behalf of the Trust) if an Event of Default shall have occurred and be continuing. If the Institutional Trustee shall be so removed, the Holders of Capital Securities, by
act of the Holders of a Majority in liquidation amount of the Capital Securities then outstanding delivered to the Institutional Trustee,
shall promptly appoint a Successor Institutional Trustee, and such Successor Institutional Trustee shall comply with the applicable requirements of this Section 4.3. If no Successor
Institutional Trustee shall have been so appointed by the Holders of a Majority in liquidation amount of the Capital Securities and accepted appointment in the manner required by this
Section 4.3, within 30 days after delivery of an instrument of removal, any Holder who has been a Holder of the Securities for at least 6 months may, on behalf of himself and all
others similarly situated, petition any Federal, state or District of Columbia court of competent jurisdiction for the appointment of the Successor Institutional Trustee. Such court may thereupon,
after prescribing such notice, if any, as it may deem proper, appoint a Successor Institutional Trustee. 

        The
Institutional Trustee shall give notice of its resignation and removal and each appointment of a Successor Institutional Trustee to all Holders in the manner provided in
Section 13.1(d) and shall give notice to the Sponsor. Each notice shall include the name of the Successor Institutional Trustee and the address of its Corporate Trust Office. 

        (b)  In
case of the appointment hereunder of a Successor Institutional Trustee, the retiring Institutional Trustee and the Successor Institutional Trustee shall execute and
deliver an amendment hereto wherein the Successor Institutional Trustee shall accept such appointment and which (i) shall 

18

 

contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, the Successor Institutional Trustee all the rights, powers, trusts and duties of the retiring
Institutional Trustee with respect to the Securities and the Trust and (ii) shall add to or change any of the provisions of this Declaration as shall be necessary to provide for or facilitate
the administration of the Trust by more than one Institutional Trustee, it being understood that nothing herein or in such amendment shall constitute such Institutional Trustees
co-trustees and upon the execution and delivery of such amendment the resignation or removal of the retiring Institutional Trustee shall become effective to the extent provided therein and
each Successor Institutional Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Institutional Trustee; but, on
request of the Trust or any Successor Institutional Trustee such retiring Institutional Trustee shall duly assign, transfer and deliver to such Successor Institutional Trustee all Trust Property, all
proceeds thereof and money held by such retiring Institutional Trustee hereunder with respect to the Securities and the Trust. 

        (c)  No
Institutional Trustee shall be liable for the acts or omissions to act of any Successor Institutional Trustee. 

        (d)  The
Holders of the Capital Securities will have no right to vote to appoint, remove or replace the Administrators, which voting rights are vested exclusively in the
Holder of the Common Securities. 

        Section 4.4.    Institutional Trustee Vacancies.    If the Institutional Trustee ceases
to hold office for any reason a vacancy shall occur. A resolution certifying the existence of such vacancy by the Institutional Trustee
shall be conclusive evidence of the existence of such vacancy. The vacancy shall be filled with a trustee appointed in accordance with Section 4.3. 

        Section 4.5.    Effect of Vacancies.    The death, resignation, retirement, removal,
bankruptcy, dissolution, liquidation, incompetence or incapacity to perform the duties of the Institutional Trustee shall not operate to dissolve, terminate or annul the Trust or terminate this
Declaration. 

        Section 4.6.    Meetings of the Institutional Trustee and the
Administrators.    Meetings of the Administrators shall be held from time to time upon the call of an Administrator. Regular meetings of the Administrators may be
held in person in the United States or by telephone, at a place (if applicable) and time fixed by resolution of the Administrators. Notice of any in-person meetings of the Institutional
Trustee with the Administrators or meetings of the Administrators shall be hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not less
than 48 hours before such meeting. Notice of any telephonic meetings of the Institutional Trustee with the Administrators or meetings of the Administrators or any committee thereof shall be
hand delivered or otherwise delivered in writing (including by facsimile, with a hard copy by overnight courier) not less than 24 hours before a meeting. Notices shall contain a brief statement
of the time, place and anticipated purposes of the meeting. The presence (whether in person or by telephone) of the Institutional Trustee or an Administrator, as the case may be, at a meeting shall
constitute a waiver of notice of such meeting except where the Institutional Trustee or an Administrator, as the case may be, attends a meeting for the express purpose of objecting to the transaction
of any activity on the grounds that the meeting has not been lawfully called or convened. Unless provided otherwise in this Declaration, any action of the Institutional Trustee or the Administrators,
as the case may be, may be taken at a meeting by vote of the Institutional Trustee or a majority vote of the Administrators present (whether in person or by telephone) and eligible to vote with
respect to such matter, provided that a Quorum is present, or without a meeting by the unanimous written consent of the Institutional Trustee or the Administrators. Meetings of the Institutional
Trustee and the Administrators together shall be held from time to time upon the call of the Institutional Trustee or an Administrator. 

19

 

        Section 4.7.    Delegation of Power.    

        (a)  Any
Administrator may, by power of attorney consistent with applicable law, delegate to any other natural person over the age of 21 that is a U.S. Person his or her
power for the purpose of executing any documents contemplated in Section 2.6; and 

        (b)  the
Administrators shall have power to delegate from time to time to such of their number the doing of such things and the execution of such instruments either in the
name of the Trust or the names of the Administrators or otherwise as the Administrators may deem expedient, to the extent such delegation is not prohibited by applicable law or contrary to the
provisions of the Trust, as set forth herein. 

        Section 4.8.    Conversion, Consolidation or Succession to Business.    Any Person into
which the Institutional Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Institutional Trustee
shall be a party, or any Person succeeding to all or substantially all the corporate trust business of the Institutional Trustee shall be the successor of the Institutional Trustee hereunder, provided
such Person shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. 

 
 

ARTICLE V
  
    DISTRIBUTIONS    
  

        Section 5.1.    Distributions.    Holders shall receive Distributions in accordance
with the applicable terms of the relevant Holder's Securities. Distributions shall be made on the Capital Securities and the Common Securities in accordance with the preferences set forth in their
respective terms. If and to the extent that the Debenture Issuer makes a payment of Interest or any principal on the Debentures held by the Institutional Trustee, the Institutional Trustee shall and
is directed, to the extent funds are available for that purpose, to make a distribution (a "Distribution") of such amounts to Holders. 

 
 

ARTICLE VI
  
    ISSUANCE OF SECURITIES    
  

        Section 6.1.    General Provisions Regarding Securities.    

        (a)  The
Administrators shall, on behalf of the Trust, issue one series of capital securities substantially in the form of Exhibit A-1 representing
undivided beneficial interests in the assets of the Trust having such terms as are set forth in Annex I and one series of common securities representing undivided beneficial interests in the assets of
the Trust having such terms as are set forth in Annex I. The Trust shall issue no securities or other interests in the assets of the Trust other than the Capital Securities and the Common Securities.
The Capital Securities rank pari passu to, and payment thereon shall be made Pro Rata with, the Common Securities except that, where an Event of Default
has occurred and is continuing, the rights of Holders of the Common Securities to payment in respect of Distributions and
payments upon liquidation, redemption and otherwise are subordinated to the rights to payment of the Holders of the Capital Securities as set forth in Annex I. 

        (b)  The
Certificates shall be signed on behalf of the Trust by one or more Administrators. Such signature shall be the facsimile or manual signature of any Administrator. In
case any Administrator of the Trust who shall have signed any of the Securities shall cease to be such Administrator before the Certificates so signed shall be delivered by the Trust, such
Certificates nevertheless may be delivered as though the person who signed such Certificates had not ceased to be such Administrator, and any Certificate may be signed on behalf of the Trust by such
persons who, at the actual date of execution of 

20

 

such Security, shall be an Administrator of the Trust, although at the date of the execution and delivery of the Declaration any such person was not such an Administrator. A Capital Security shall
not be valid until authenticated by the facsimile or manual signature of an Authorized Officer of the Institutional Trustee. Such signature shall be conclusive evidence that the Capital Security has
been authenticated under this Declaration. Upon written order of the Trust signed by one Administrator, the Institutional Trustee shall authenticate the Capital Securities for original issue. The
Institutional Trustee may appoint an authenticating agent that is a U.S. Person acceptable to the Trust to authenticate the Capital Securities. A Common Security need not be so authenticated. 

        (c)  The
consideration received by the Trust for the issuance of the Securities shall constitute a contribution to the capital of the Trust and shall not constitute a loan to
the Trust. 

        (d)  Upon
issuance of the Securities as provided in this Declaration, the Securities so issued shall be deemed to be validly issued, fully paid and, except as provided in
Section 9.1(b) with respect to the Common Securities, non-assessable. 

        (e)  Every
Person, by virtue of having become a Holder in accordance with the terms of this Declaration, shall be deemed to have expressly assented and agreed to the terms
of, and shall be bound by, this Declaration and the Guarantee. 

        Section 6.2.    Paying Agent, Transfer Agent and Registrar.    The Trust shall maintain
in Hartford, Connecticut, an office or agency where the Capital Securities may be presented for payment ("Paying Agent"), and an office or agency where
Securities may be presented for registration of transfer or exchange (the "Transfer Agent"). The Trust shall keep or cause to be kept at such office or
agency a register for the purpose of registering Securities, transfers and exchanges of Securities, such register to be held by a registrar (the
"Registrar"). The Administrators may appoint the Paying Agent, the Registrar and the Transfer Agent and may appoint one or more additional Paying Agents
or one or more co-Registrars, or one or more co-Transfer Agents in such other locations as it shall determine. The term "Paying
Agent" includes any additional paying agent, the term "Registrar" includes any additional registrar or co-Registrar
and the term "Transfer Agent" includes any additional transfer agent. The Administrators may change any Paying Agent, Transfer Agent or Registrar at any
time without prior notice to any Holder. The Administrators shall notify the Institutional Trustee of the name and address of any Paying
Agent, Transfer Agent and Registrar not a party to this Declaration. The Administrators hereby initially appoint the Institutional Trustee to act as Paying Agent, Transfer Agent and Registrar for the
Capital Securities and the Common Securities. The Institutional Trustee or any of its Affiliates in the United States may act as Paying Agent, Transfer Agent or Registrar. 

        Section 6.3.    Form and Dating.    The Capital Securities and the Institutional
Trustee's certificate of authentication thereon shall be substantially in the form of Exhibit A-1, and the Common Securities shall be substantially in the form of
Exhibit A-2, each of which is hereby incorporated in and expressly made a part of this Declaration. Certificates may be typed, printed, lithographed or engraved or may be produced
in any other manner as is reasonably acceptable to the Administrators, as conclusively evidenced by their execution thereof. The Securities may have letters, numbers, notations or other marks of
identification or designation and such legends or endorsements required by law, stock exchange rule, agreements to which the Trust is subject if any, or usage (provided that any such notation, legend
or endorsement is in a form acceptable to the Sponsor). The Trust at the direction of the Sponsor shall furnish any such legend not contained in Exhibit A-1 to the Institutional
Trustee in writing. Each Capital Security shall be dated on or before the date of its authentication. The terms and provisions of the Securities set forth in Annex I and the forms of Securities set
forth in Exhibits A-1 and A-2 are part of the terms of this Declaration and to the extent applicable, the Institutional Trustee, the Administrators and the Sponsor, by their
execution and delivery of this Declaration, expressly agree to such terms and provisions and to be bound thereby. Capital Securities will be issued only in blocks 

21

 

having a stated liquidation amount of not less than $500,000.00 and any multiple of $1,000.00 in excess thereof. 

        The
Capital Securities are being offered and sold by the Trust pursuant to the Placement Agreement in definitive, registered form without coupons and with the Restricted Securities
Legend. 

        Section 6.4.    Mutilated, Destroyed, Lost or Stolen Certificates.    

        If:

        (a)  any
mutilated Certificates should be surrendered to the Registrar, or if the Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of
any Certificate; and 

        (b)  there
shall be delivered to the Registrar, the Administrators and the Institutional Trustee such security or indemnity as may be required by them to keep each of them
harmless; 

then,
in the absence of notice that such Certificate shall have been acquired by a protected purchaser, an Administrator on behalf of the Trust shall execute (and in the case of a Capital Security
Certificate, the Institutional Trustee shall authenticate) and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like denomination.
In connection with the issuance of any new Certificate under this Section 6.4, the Registrar or the Administrators may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of an ownership interest in the relevant
Securities, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time. 

        Section 6.5.    Temporary Securities.    Until definitive Securities are ready for
delivery, the Administrators may prepare and, in the case of the Capital Securities, the Institutional Trustee shall authenticate, temporary Securities. Temporary Securities shall be substantially in
the form of definitive Securities but may have variations that the Administrators consider appropriate for temporary Securities. Without unreasonable delay, the Administrators shall prepare and, in
the case of the Capital Securities, the Institutional Trustee shall authenticate, definitive Securities in exchange for temporary Securities. 

        Section 6.6.    Cancellation.    The Administrators at any time may deliver Securities
to the Institutional Trustee for cancellation. The Registrar shall forward to the Institutional Trustee any Securities surrendered to it for registration of transfer, redemption or payment. The
Institutional Trustee shall promptly cancel all Securities surrendered for registration of transfer, payment, replacement or cancellation and shall dispose of such canceled Securities as the
Administrators direct. The Administrators may not issue new Securities to replace Securities that have been paid or that have been delivered to the Institutional Trustee for cancellation. 

        Section 6.7.    Rights of Holders; Waivers of Past Defaults.    

        (a)  The
legal title to the Trust Property is vested exclusively in the Institutional Trustee (in its capacity as such) in accordance with Section 2.5, and the Holders
shall not have any right or title therein other than the undivided beneficial interest in the assets of the Trust conferred by their Securities and they shall have no right to call for any partition
or division of property, profits or rights of the Trust except as described below. The Securities shall be personal property giving only the rights specifically set forth therein and in this
Declaration. The Securities shall have no preemptive or similar rights. 

        (b)  For
so long as any Capital Securities remain outstanding, if upon an Indenture Event of Default, the Debenture Trustee fails or the holders of not less than 25% in
principal amount of the outstanding Debentures fail to declare the principal of all of the Debentures to be immediately due and payable, the Holders of a Majority in liquidation amount of the Capital
Securities then outstanding 

22

 

shall have the right to make such declaration by a notice in writing to the Institutional Trustee, the Sponsor and the Debenture Trustee. 

        At
any time after a declaration of acceleration with respect to the Debentures has been made and before a judgment or decree for payment of the money due has been obtained by the
Debenture Trustee as provided in the Indenture, if the Institutional Trustee fails to annul any such declaration and waive such default, the Holders of a Majority in liquidation amount of the Capital
Securities, by written notice to the Institutional Trustee, the Sponsor and the Debenture Trustee, may rescind and annul such declaration and its consequences if: 

        (i)    the
Debenture Issuer has paid or deposited with the Debenture Trustee a sum sufficient to pay 

        (A)  all
overdue installments of interest on all of the Debentures, 

        (B)  any
accrued Additional Interest on all of the Debentures, 

        (C)  the
principal of (and premium, if any, on) any Debentures that have become due otherwise than by such declaration of acceleration and interest and Additional Interest
thereon at the rate borne by the Debentures, and 

        (D)  all
sums paid or advanced by the Debenture Trustee under the Indenture and the reasonable compensation, expenses, disbursements and advances of the Debenture Trustee and
the Institutional Trustee, their agents and counsel; and 

        (ii)  all
Events of Default with respect to the Debentures, other than the non-payment of the principal of the Debentures that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.7 of the Indenture. 

        The
Holders of at least a Majority in liquidation amount of the Capital Securities may, on behalf of the Holders of all the Capital Securities, waive any past default or Event of
Default, except a default or Event of Default in the payment of principal or interest (unless such default or Event of Default has been cured and a sum sufficient to pay all matured installments of
interest and principal due otherwise than by acceleration has been deposited with the Debenture Trustee) or a default or Event of Default in respect of a covenant or provision that under the Indenture
cannot be modified or amended without the consent of the holder of each outstanding Debenture. No such rescission shall affect any subsequent default or impair any right consequent thereon. 

        Upon
receipt by the Institutional Trustee of written notice declaring such an acceleration, or rescission and annulment thereof, by Holders of any part of the Capital Securities, a
record date shall be
established for determining Holders of outstanding Capital Securities entitled to join in such notice, which record date shall be at the close of business on the day the Institutional Trustee receives
such notice. The Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such notice, whether or not such Holders remain Holders after such
record date; provided, that unless such declaration of acceleration, or rescission and annulment, as the case may be, shall have become effective by
virtue of the requisite percentage having joined in such notice prior to the day that is 90 days after such record date, such notice of declaration of acceleration, or rescission and annulment,
as the case may be, shall automatically and without further action by any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from
giving, after expiration of such 90-day period, a new written notice of declaration of acceleration, or rescission and annulment thereof, as the case may be, that is identical to a written
notice that has been canceled pursuant to the proviso to the preceding sentence, in which event a new record date shall be established pursuant to the provisions of this Section 6.7. 

        (c)  Except
as otherwise provided in paragraphs (a) and (b) of this Section 6.7, the Holders of at least a Majority in liquidation amount of the Capital
Securities may, on behalf of the Holders of all the 

23

 

Capital Securities, waive any past default or Event of Default and its consequences. Upon such waiver, any such default or Event of Default shall cease to exist, and any default or Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this Declaration, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right
consequent thereon. 

 
 

ARTICLE VII
  
    DISSOLUTION AND TERMINATION OF TRUST    
  

        Section 7.1.    Dissolution and Termination of Trust.    

        (a)  The
Trust shall dissolve on the first to occur of: 

        (i)    unless
earlier dissolved, on September 26, 2037, the expiration of the term of the Trust; 

        (ii)  upon
a Bankruptcy Event with respect to the Sponsor, the Trust or the Debenture Issuer; 

        (iii)  (other
than in connection with a merger, consolidation or similar transaction not prohibited by the Indenture, this Declaration or the Guarantee, as the case may be)
upon the filing of a certificate of dissolution or its equivalent with respect to the Sponsor, upon the consent of Holders of a Majority in liquidation amount of the Securities voting together as a
single class to file a certificate of cancellation with respect to the Trust or upon the revocation of the charter of the Sponsor and the expiration of 90 days after the date of
revocation without a reinstatement thereof; 

        (iv)  upon
the distribution of the Debentures to the Holders of the Securities in accordance with Section 3 of Annex I; 

        (v)  upon
exercise of the right of the Holder of all of the outstanding Common Securities to dissolve the Trust as provided in Annex I hereto; 

        (vi)  upon
the entry of a decree of judicial dissolution of the Holder of the Common Securities, the Sponsor, the Trust or the Debenture Issuer; 

        (vii)  when
all of the Securities shall have been called for redemption and the amounts necessary for redemption thereof shall have been paid to the Holders in accordance
with the terms of the Securities; or 

        (viii)  before
the issuance of any Securities, with the consent of the Institutional Trustee and the Sponsor. 

        (b)  As
soon as is practicable after the occurrence of an event referred to in Section 7.1(a), and after satisfaction of liabilities to creditors of the Trust as
required by applicable law, including of the Statutory Trust Act, and subject to the terms set forth in Annex I, the Institutional Trustee shall terminate the Trust by filing a certificate of
cancellation with the Secretary of State of the State of Connecticut. 

        (c)  The
provisions of Section 2.9 and Article IX shall survive the termination of the Trust. 

 
 

ARTICLE VIII
  
    TRANSFER OF INTERESTS    
  

        Section 8.1.    General.    

        (a)  Subject
to Section 8.1(c), where Capital Securities are presented to the Registrar or a co-registrar with a request to register a transfer or to
exchange them for an equal number of Capital 

24

 

Securities represented by different certificates, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfer
and exchanges, the Trust shall issue and the Institutional Trustee shall authenticate Capital Securities at the Registrar's request. 

        (b)  Upon
issuance of the Common Securities, the Sponsor shall acquire and retain beneficial and record ownership of the Common Securities and for so long as the Securities
remain outstanding, the Sponsor shall maintain 100% ownership of the Common Securities; provided, however, that any permitted successor of the Sponsor, in its capacity as Debenture Issuer, under the
Indenture that is a U.S. Person may succeed to the Sponsor's ownership of the Common Securities. 

        (c)  Capital
Securities may only be transferred, in whole or in part, in accordance with the terms and conditions set forth in this Declaration and in the terms of the
Securities. To the fullest extent permitted by applicable law, any transfer or purported transfer of any Security not made in accordance with this Declaration shall be null and void and will be deemed
to be of no legal effect whatsoever and any such transferee shall be deemed not to be the holder of such Capital Securities for any purpose, including but not limited to the receipt of Distributions
on such Capital Securities, and such transferee shall be deemed to have no interest whatsoever in such Capital Securities. 

        (d)  The
Registrar shall provide for the registration of Securities and of transfers of Securities, which will be effected without charge but only upon payment (with such
indemnity as the Registrar may require) in respect of any tax or other governmental charges that may be imposed in relation to it. Upon surrender for registration of transfer of any Securities, the
Registrar shall cause one or more new Securities of the same tenor to be issued in the name of the designated transferee or transferees. Every Security surrendered for registration of transfer shall
be accompanied by a written instrument of transfer in form satisfactory to the Registrar duly executed by the Holder or such Holder's attorney duly authorized in writing. Each Security surrendered for
registration of transfer shall be canceled by the Institutional Trustee pursuant to Section 6.6. A transferee of a Security shall be entitled to the rights and subject to the obligations of a
Holder hereunder upon the receipt by such transferee of a Security. By acceptance of a Security, each transferee shall be deemed to have agreed to be bound by this Declaration. 

        (e)  The
Trust shall not be required (i) to issue, register the transfer of, or exchange any Securities during a period beginning at the opening of business
15 days before the day of any selection of Securities for redemption and ending at the close of business on the earliest date on which the relevant notice of
redemption is deemed to have been given to all Holders of the Securities to be redeemed, or (ii) to register the transfer or exchange of any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part. 

        Section 8.2.    Transfer Procedures and Restrictions.    

        (a)  The
Capital Securities shall bear the Restricted Securities Legend, which shall not be removed unless there is delivered to the Trust such satisfactory evidence, which
may include an opinion of counsel satisfactory to the Trustee, as may be reasonably required by the Trust, that neither the legend nor the restrictions on transfer set forth therein are required to
ensure that transfers thereof comply with the provisions of the Securities Act. Upon provision of such satisfactory evidence, the Institutional Trustee, at the written direction of the Trust, shall
authenticate and deliver Capital Securities that do not bear the legend. 

        (b)  Except
as permitted by Section 8.2(a), each Capital Security shall bear a legend (the "Restricted Securities
Legend") in substantially the following form and a Capital Security shall not be 

25

 

transferred except in compliance with such legend, unless otherwise determined by the Sponsor, upon the advice of counsel expert in securities law, in accordance with applicable law: 

        THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE SPONSOR OR THE TRUST, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION
S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL
SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE SPONSOR'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM IN ACCORDANCE WITH THE DECLARATION OF TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE SPONSOR OR THE TRUST. HEDGING TRANSACTIONS INVOLVING THIS SECURITY MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE SECURITIES ACT. 

        THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH A "PLAN"), OR AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY
INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60,
91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE 

26

 

REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION. 

        THIS
SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $500,000.00 (500 SECURITIES) AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF.
ANY ATTEMPTED TRANSFER OF SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $500,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. 

        THE
HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS. 

        (c)  To
permit registrations of transfers and exchanges, the Trust shall execute and the Institutional Trustee shall authenticate Capital Securities at the Registrar's
request. 

        (d)  Registrations
of transfers or exchanges will be effected without charge, but only upon payment (with such indemnity as the Registrar or the Sponsor may require) in
respect of any tax or other governmental charge that may be imposed in relation to it. 

        (e)  All
Capital Securities issued upon any registration of transfer or exchange pursuant to the terms of this Declaration shall evidence the same security and shall be
entitled to the same benefits under this Declaration as the Capital Securities surrendered upon such registration of transfer or exchange. 

        Section 8.3.    Deemed Security Holders.    The Trust, the Administrators, the
Institutional Trustee, the Paying Agent, the Transfer Agent or the Registrar may treat the Person in whose name any Certificate shall be registered on the books and records of the Trust as the sole
holder of such Certificate and of the Securities represented by such Certificate for purposes of receiving Distributions and for all other purposes whatsoever and, accordingly, shall not be bound to
recognize any equitable or other claim to or interest in such Certificate or in the Securities represented by such Certificate on the part of any Person, whether or not the Trust, the Administrators,
the Institutional Trustee, the Paying Agent, the Transfer Agent or the Registrar shall have actual or other notice thereof. 

 
 

ARTICLE IX
  
    LIMITATION OF LIABILITY OF
  HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS    
  

        Section 9.1.    Liability.    

        (a)  Except
as expressly set forth in this Declaration, the Guarantee and the terms of the Securities, the Sponsor shall not be: 

        (i)    personally
liable for the return of any portion of the capital contributions (or any return thereon) of the Holders of the Securities which shall be made solely from
assets of the Trust; or 

        (ii)  required
to pay to the Trust or to any Holder of the Securities any deficit upon dissolution of the Trust or otherwise. 

27

 

        (b)  The
Holder of the Common Securities shall be liable for all of the debts and obligations of the Trust (other than with respect to the Securities) to the extent not
satisfied out of the Trust's assets. 

        (c)  Pursuant
to the Statutory Trust Act, the Holders of the Capital Securities shall be entitled to the same limitation of personal liability extended to stockholders of
private corporations for profit organized under the General Corporation Law of the State of Connecticut. 

        Section 9.2.    Exculpation.    

        (a)  No
Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Trust or any Covered Person for any loss, damage or claim incurred by
reason of any act or omission performed or omitted by such Indemnified Person in good faith on behalf of the Trust and in a manner such Indemnified Person reasonably believed to be within the scope of
the authority conferred on such Indemnified Person by this Declaration or by law, except that an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's negligence or willful misconduct with respect to such acts or omissions. 

        (b)  An
Indemnified Person shall be fully protected in relying in good faith upon the records of the Trust and upon such information, opinions, reports or statements
presented to the Trust by any Person as to matters the Indemnified Person reasonably believes are within such other Person's professional or expert competence and, if selected by such Indemnified
Person, has been selected by such Indemnified Person with reasonable care by or on behalf of the Trust, including information, opinions, reports or statements as to the value and amount of the assets,
liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from which Distributions to Holders of Securities might properly be paid. 

        Section 9.3.    Fiduciary Duty.    

        (a)  To
the extent that, at law or in equity, an Indemnified Person has duties (including fiduciary duties) and liabilities relating thereto to the Trust or to any other
Covered Person, an Indemnified Person acting under this Declaration shall not be liable to the Trust or to any other Covered Person for its good faith reliance on the provisions of this Declaration.
The provisions of this Declaration, to the extent that they restrict the duties and liabilities of an Indemnified Person otherwise existing at law or
in equity, are agreed by the parties hereto to replace such other duties and liabilities of the Indemnified Person. 

        (b)  Whenever
in this Declaration an Indemnified Person is permitted or required to make a decision: 

        (i)    in
its "discretion" or under a grant of similar authority, the Indemnified Person shall be entitled to consider such interests and factors as it desires, including its
own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Trust or any other Person; or 

        (ii)  in
its "good faith" or under another express standard, the Indemnified Person shall act under such express standard and shall not be subject to any other or different
standard imposed by this Declaration or by applicable law. 

        Section 9.4.    Indemnification.    

        (a)  The
Sponsor shall indemnify, to the full extent permitted by law, any Indemnified Person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Trust) arising out of or in connection with
the acceptance or administration of this Declaration by reason of the fact that he is or was an Indemnified Person against expenses (including reasonable attorneys' fees and expenses), judgments,
fines and amounts paid in settlement actually and 

28

 

reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the
Trust, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the Indemnified Person did
not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Trust, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful. 

        (b)  The
Sponsor shall indemnify, to the full extent permitted by law, any Indemnified Person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the Trust to procure a judgment in its favor arising out of or in connection with the acceptance or administration of this Declaration by
reason of the fact that he is or was an Indemnified Person against expenses (including reasonable attorneys' fees and expenses) actually and reasonably incurred by him in connection with the defense
or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Trust; provided,
however, that no such indemnification shall be made in respect of any
claim, issue or matter as to which such Indemnified Person shall have been adjudged to be liable to the Trust unless and only to the extent that the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such
expenses which such court shall deem proper. 

        (c)  To
the extent that an Indemnified Person shall be successful on the merits or otherwise (including dismissal of an action without prejudice or the settlement of an
action without admission of liability) in defense of any action, suit or proceeding referred to in paragraphs (a) and (b) of this Section 9.4, or in defense of any claim, issue or
matter therein, he shall be indemnified, to the full extent permitted by law, against expenses (including attorneys' fees and expenses) actually and reasonably incurred by him in connection therewith. 

        (d)  Any
indemnification of an Administrator under paragraphs (a) and (b) of this Section 9.4 (unless ordered by a court) shall be made by the Sponsor
only as authorized in the specific case upon a determination that indemnification of the Indemnified Person is proper in the circumstances because he has met the applicable standard of conduct set
forth in paragraphs (a) and (b). Such determination shall be made (i) by the Administrators by a majority vote of a Quorum consisting of such Administrators who were not parties to such
action, suit or proceeding, (ii) if such a Quorum is not obtainable, or, even if obtainable, if a Quorum of disinterested Administrators so directs, by independent legal counsel in a written
opinion, or (iii) by the Common Security Holder of the Trust. 

        (e)  To
the fullest extent permitted by law, expenses (including reasonable attorneys' fees and expenses) incurred by an Indemnified Person in defending a civil, criminal,
administrative or investigative action, suit or proceeding referred to in paragraphs (a) and (b) of this Section 9.4 shall be paid by the Sponsor in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such Indemnified Person to repay such amount if it shall ultimately be determined that he is not
entitled to be indemnified by the Sponsor as authorized in this Section 9.4. Notwithstanding the foregoing, no advance shall be made by the Sponsor if a determination is reasonably and promptly
made (i) by the Administrators by a majority vote of a Quorum of disinterested Administrators, (ii) if such a Quorum is not obtainable, or, even if obtainable, if a quorum of
disinterested Administrators so directs, by independent legal counsel in a written opinion or (iii) by the Common Security Holder of the Trust, that, based upon the facts known to the
Administrators, counsel or the Common Security Holder at the time such determination is made, such Indemnified Person acted in bad faith or in a manner that such Indemnified Person did not believe to
be in the best interests of the Trust, or, with respect to any criminal proceeding, that such Indemnified 

29

 

Person believed or had reasonable cause to believe his conduct was unlawful. In no event shall any advance be made in instances where the Administrators, independent legal counsel or the Common
Security Holder reasonably determine that such Indemnified Person deliberately breached his duty to the Trust or its Common or Capital Security Holders. 

        (f)    The
Institutional Trustee, at the sole cost and expense of the Sponsor, retains the right to representation by counsel of its own choosing in any action, suit or any
other proceeding for which it is
indemnified under paragraphs (a) and (b) of this Section 9.4, without affecting its right to indemnification hereunder or waiving any rights afforded to it under this Declaration
or applicable law. 

        (g)  The
indemnification and advancement of expenses provided by, or granted pursuant to, the other paragraphs of this Section 9.4 shall not be deemed exclusive of any
other rights to which those seeking indemnification and advancement of expenses may be entitled under any agreement, vote of stockholders or disinterested directors of the Sponsor or Capital Security
Holders of the Trust or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office. All rights to indemnification under this
Section 9.4 shall be deemed to be provided by a contract between the Sponsor and each Indemnified Person who serves in such capacity at any time while this Section 9.4 is in effect. Any
repeal or modification of this Section 9.4 shall not affect any rights or obligations then existing. 

        (h)  The
Sponsor or the Trust may purchase and maintain insurance on behalf of any Person who is or was an Indemnified Person against any liability asserted against him and
incurred by him in any such capacity, or arising out of his status as such, whether or not the Sponsor would have the power to indemnify him against such liability under the provisions of this
Section 9.4. 

        (i)    For
purposes of this Section 9.4, references to "the Trust" shall include, in addition to the resulting or surviving entity, any constituent entity (including any
constituent of a constituent) absorbed in a consolidation or merger, so that any Person who is or was a director, trustee, officer or employee of such constituent entity, or is or was serving at the
request of such constituent entity as a director, trustee, officer, employee or agent of another entity, shall stand in the same position under the provisions of this Section 9.4 with respect
to the resulting or surviving entity as he would have with respect to such constituent entity if its separate existence had continued. 

        (j)    The
indemnification and advancement of expenses provided by, or granted pursuant to, this Section 9.4 shall, unless otherwise provided when authorized or
ratified, (i) continue as to a Person who has ceased to be an Indemnified Person and shall inure to the benefit of the heirs, executors and administrators of such a Person; and
(ii) survive the termination or expiration of this Declaration or the earlier removal or resignation of an Indemnified Person. 

        Section 9.5.    Outside Businesses.    Any Covered Person, the Sponsor and the
Institutional Trustee may engage in or possess an interest in other business ventures of any nature or description, independently or with others, similar or dissimilar to the business of the Trust,
and the Trust and the Holders of Securities shall have no rights by virtue of this Declaration in and to such independent ventures or the income or profits derived therefrom, and the pursuit of any
such venture, even if competitive with the business of the Trust, shall not be deemed wrongful or improper. None of any Covered Person, the Sponsor or the Institutional Trustee shall be obligated to
present any particular investment or other opportunity to the Trust even if such opportunity is of a character that, if presented to the Trust, could be taken by the Trust, and any Covered Person, the
Sponsor and the Institutional Trustee shall have the right to take for its own account (individually or as a partner or fiduciary) or to recommend to others any such particular investment or other
opportunity. Any Covered Person and the Institutional Trustee may engage or be interested in any financial or other transaction with the Sponsor or any Affiliate of
the Sponsor, or may act as depositary for, trustee or agent for, or act on any committee or body of holders of, securities or other obligations of the Sponsor or its Affiliates. 

30

 

        Section 9.6.    Compensation; Fee.    The Sponsor agrees: 

        (a)  to
pay to the Institutional Trustee from time to time such compensation for all services rendered by it hereunder as the parties shall agree from time to time (which
compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); and 

        (b)  except
as otherwise expressly provided herein, to reimburse the Institutional Trustee upon request for all reasonable expenses, disbursements and advances incurred or
made by the Institutional Trustee in accordance with any provision of this Declaration (including the reasonable compensation and the expenses and disbursements of their respective agents and
counsel), except any such expense, disbursement or advance as may be attributable to its negligence, bad faith or willful misconduct. 

        The
provisions of this Section 9.6 shall survive the dissolution of the Trust and the termination of this Declaration and the removal or resignation of the Institutional Trustee. 

        No
Trustee may claim any lien or charge on any property of the Trust as a result of any amount due pursuant to this Section 9.6. 

 
 

ARTICLE X
  
    ACCOUNTING    
  

        Section 10.1.    Fiscal Year.    The fiscal year ("Fiscal
Year") of the Trust shall be the calendar year, or such other year as is required by the Code. 

        Section 10.2.    Certain Accounting Matters.    

        (a)  At
all times during the existence of the Trust, the Administrators shall keep, or cause to be kept at the principal office of the Trust in the United States, as defined
for purposes of Treasury Regulations section 301.7701-7, full books of account, records and supporting documents, which shall reflect in reasonable detail each transaction of the
Trust. The books of account shall be maintained, at the Sponsor's expense, in accordance with generally accepted accounting principles, consistently applied. The books of account and the records of
the Trust shall be examined by and reported upon (either separately or as part of the Sponsor's regularly prepared consolidated financial report) as of the end of each Fiscal Year of the Trust by a
firm of independent certified public accountants selected by the Administrators. 

        (b)  The
Administrators shall cause to be duly prepared and delivered to each of the Holders of Securities Form 1099 or such other annual United States federal income
tax information statement required by the Code, containing such information with regard to the Securities held by each Holder as is required by the Code and the Treasury Regulations. Notwithstanding
any right under the Code to deliver any such statement at a later date, the Administrators shall endeavor to deliver all such statements within 30 days after the end of each Fiscal Year of the
Trust. 

        (c)  The
Administrators, at the Sponsor's expense, shall cause to be duly prepared at the principal office of the Trust in the United States, as defined for purposes of
Treasury Regulations section 301.7701-7, and filed an annual United States federal income tax return on a Form 1041 or such other form required by United States federal
income tax law, and any other annual income tax returns required to be filed by the Administrators on behalf of the Trust with any state or local taxing authority. 

        Section 10.3.    Banking.    The Trust shall maintain in the United States, as defined
for purposes of Treasury Regulations section 301.7701-7, one or more bank accounts in the name and for the sole benefit of the Trust; provided,
however, that all payments of funds in respect of the Debentures held by the Institutional Trustee shall be made directly to the Property Account and no other funds of the
Trust 

31

 

shall be deposited in the Property Account. The sole signatories for such accounts (including the Property Account) shall be designated by the Institutional Trustee. 

        Section 10.4.    Withholding.    The Institutional Trustee or any Paying Agent and the
Administrators shall comply with all withholding requirements under United States federal, state and local law. The Institutional Trustee or any Paying Agent shall request, and each Holder shall
provide to the Institutional Trustee or any Paying Agent, such forms or certificates as are necessary to establish an exemption from withholding with respect to the Holder, and any representations and
forms as shall reasonably be requested by the Institutional Trustee or any Paying Agent to assist it in determining the extent of, and in fulfilling, its withholding obligations. The Administrators
shall file required forms with applicable jurisdictions and, unless an exemption from withholding is properly established by a Holder, shall remit amounts withheld with respect to the Holder to
applicable jurisdictions. To the extent that
the Institutional Trustee or any Paying Agent is required to withhold and pay over any amounts to any authority with respect to distributions or allocations to any Holder, the amount withheld shall be
deemed to be a Distribution in the amount of the withholding to the Holder. In the event of any claimed overwithholding, Holders shall be limited to an action against the applicable jurisdiction. If
the amount required to be withheld was not withheld from actual Distributions made, the Institutional Trustee or any Paying Agent may reduce subsequent Distributions by the amount of such withholding. 

 
 

ARTICLE XI
  
    AMENDMENTS AND MEETINGS    
  

        Section 11.1.    Amendments.    

        (a)  Except
as otherwise provided in this Declaration or by any applicable terms of the Securities, this Declaration may only be amended by a written instrument approved and
executed by the Institutional Trustee. 

        (b)  Notwithstanding
any other provision of this Article XI, an amendment may be made, and any such purported amendment shall be valid and effective only if: 

        (i)    the
Institutional Trustee shall have first received 

        (A)  an
Officers' Certificate from each of the Trust and the Sponsor that such amendment is permitted by, and conforms to, the terms of this Declaration (including the terms
of the Securities); and 

        (B)  an
opinion of counsel (who may be counsel to the Sponsor or the Trust) that such amendment is permitted by, and conforms to, the terms of this Declaration (including the
terms of the Securities); and 

        (ii)  the
result of such amendment would not be to 

        (A)  cause
the Trust to cease to be classified for purposes of United States federal income taxation as a grantor trust; or 

        (B)  cause
the Trust to be deemed to be an Investment Company required to be registered under the Investment Company Act. 

        (c)  Except
as provided in Section 11.1(d), (e) or (h), no amendment shall be made, and any such purported amendment shall be void and ineffective unless the
Holders of a Majority in liquidation amount of the Capital Securities shall have consented to such amendment. 

        (d)  In
addition to and notwithstanding any other provision in this Declaration, without the consent of each affected Holder, this Declaration may not be amended to
(i) change the amount or timing of any Distribution on the Securities or otherwise adversely affect the amount of any 

32

 

Distribution required to be made in respect of the Securities as of a specified date or change any conversion or exchange provisions or (ii) restrict the right of a Holder to institute suit
for the enforcement of any such payment on or after such date. 

        (e)  Section 8.1
(b) and 8.1(c) and this Section 11.1 shall not be amended without the consent of all of the Holders of the Securities. 

        (f)    Article III
shall not be amended without the consent of the Holders of a Majority in liquidation amount of the Common Securities. 

        (g)  The
rights of the Holders of the Capital Securities under Article IV to appoint and remove the Institutional Trustee shall not be amended without the consent of
the Holders of a Majority in liquidation amount of the Capital Securities. 

        (h)  This
Declaration may be amended by the Institutional Trustee and the Holders of a Majority in liquidation amount of the Common Securities without the consent of the
Holders of the Capital Securities to: 

        (i)    cure
any ambiguity; 

        (ii)  correct
or supplement any provision in this Declaration that may be defective or inconsistent with any other provision of this Declaration; 

        (iii)  add
to the covenants, restrictions or obligations of the Sponsor; or 

        (iv)  modify,
eliminate or add to any provision of this Declaration to such extent as may be necessary to ensure that the Trust will be classified for United States federal
income tax purposes at all times as a grantor trust and will not be required to register as an "investment company" under the Investment Company Act (including without limitation to conform to any
change in Rule 3a-5, Rule 3a-7 or any other applicable rule under the Investment Company Act or written change in interpretation or application thereof by any
legislative body, court, government agency or regulatory authority) which amendment does not have a material adverse effect on the rights, preferences or privileges of the Holders of Securities; 

        provided, however, that no such modification, elimination or addition referred to in clauses (i), (ii) or (iii) shall
adversely affect in any material respect the powers, preferences or special rights of Holders of Capital Securities. 

        Section 11.2.    Meetings of the Holders of Securities; Action by Written Consent.    

        (a)  Meetings
of the Holders of any class of Securities may be called at any time by the Administrators (or as provided in the terms of the Securities) to consider and act on
any matter on which Holders of such class of Securities are entitled to act under the terms of this Declaration or the terms of the Securities. The Administrators shall call a meeting of the Holders
of such class if directed to do so by the Holders of at least 10% in liquidation amount of such class of Securities. Such direction shall be given by delivering to the Administrators one or more calls
in a writing stating that the signing Holders of the Securities wish to call a meeting and indicating the general or specific purpose for which the meeting is to be called. Any Holders of the
Securities calling a meeting shall specify in writing the Certificates held by the Holders of the Securities exercising the right to call a meeting and only those Securities represented by such
Certificates shall be counted for purposes of determining whether the required percentage set forth in the second sentence of this paragraph has been met. 

33

 

        (b)  Except
to the extent otherwise provided in the terms of the Securities, the following provisions shall apply to meetings of Holders of the Securities: 

        (i)    notice
of any such meeting shall be given to all the Holders of the Securities having a right to vote thereat at least 7 days and not more than 60 days
before the date of such meeting. Whenever a vote, consent or approval of the Holders of the Securities is permitted or required under this Declaration, such vote, consent or approval may be given at a
meeting of the Holders of the Securities. Any action that may be taken at a meeting of the Holders of the Securities may be taken without a meeting if a consent in writing setting forth the action so
taken is signed by the Holders of the Securities owning not less than the minimum amount of Securities in liquidation amount that would be necessary to authorize or take such action at a meeting at
which all Holders of the Securities having a right to vote thereon were present and voting. Prompt notice of the taking of action without a meeting shall be given to the Holders of the Securities
entitled to vote who have not consented in writing. The Administrators may specify that any written ballot submitted to the Holders of the Securities for the purpose of taking any action without a
meeting shall be returned to the Trust within the time specified by the Administrators; 

        (ii)  each
Holder of a Security may authorize any Person to act for it by proxy on all matters in which a Holder of Securities is entitled to participate, including waiving
notice of any meeting, or voting or participating at a meeting. No proxy shall be valid after the expiration of 11 months from the date thereof unless otherwise provided in the proxy. Every
proxy shall be revocable at the pleasure of the Holder of the Securities executing it. Except as otherwise provided herein, all matters relating to the giving, voting or validity of proxies shall be
governed by the General Corporation Law of the State of Connecticut relating to proxies, and judicial interpretations thereunder, as if the Trust were a Connecticut corporation and the Holders of the
Securities were stockholders of a Connecticut corporation; each meeting of the Holders of the Securities shall be conducted by the Administrators or by such other Person that the Administrators may
designate; and 

        (iii)  unless
the Statutory Trust Act, this Declaration, or the terms of the Securities otherwise provides, the Administrators, in their sole discretion, shall establish all
other provisions relating to meetings of Holders of Securities, including notice of the time, place or purpose of any meeting at which any matter is to be voted on by any Holders of the Securities,
waiver of any such notice, action by consent without a meeting, the establishment of a record date, quorum requirements, voting in person or by proxy or any other matter with respect to the exercise
of any such right to vote; provided, however, that each meeting shall be conducted in the United States (as that term is defined in Treasury Regulations
section 301.7701-7). 

 
 

ARTICLE XII
  
    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE    
  

        Section 12.1.    Representations and Warranties of Institutional Trustee.    The
initial Institutional Trustee represents and warrants to the Trust and to the Sponsor at the date of this Declaration, and each
Successor Institutional Trustee represents and warrants to the Trust and the Sponsor at the time of the Successor Institutional Trustee's acceptance of its appointment as Institutional Trustee, that: 

        (a)  the
Institutional Trustee is a national banking association with trust powers, duly organized and validly existing under the laws of the United States of America with
trust power and authority to execute and deliver, and to carry out and perform its obligations under the terms of, this Declaration; 

        (b)  the
execution, delivery and performance by the Institutional Trustee of this Declaration has been duly authorized by all necessary corporate action on the part of the
Institutional Trustee. This Declaration has been duly executed and delivered by the Institutional Trustee, and it constitutes a legal, 

34

 

valid and binding obligation of the Institutional Trustee, enforceable against it in accordance with its terms, subject to applicable bankruptcy, reorganization, moratorium, insolvency, and other
similar laws affecting creditors' rights generally and to general principles of equity (regardless of whether considered in a proceeding in equity or at law); 

        (c)  the
execution, delivery and performance of this Declaration by the Institutional Trustee does not conflict with or constitute a breach of the charter or
by-laws of the Institutional Trustee; and 

        (d)  no
consent, approval or authorization of, or registration with or notice to, any state or federal banking authority is required for the execution, delivery or
performance by the Institutional Trustee of this Declaration. 

 
 

ARTICLE XIII
  
    MISCELLANEOUS    
  

        Section 13.1.    Notices.    All notices provided for in this Declaration shall be in
writing, duly signed by the party giving such notice, and shall be delivered, telecopied (which telecopy shall be followed by notice delivered or mailed by first class mail) or mailed by first class
mail, as follows: 

        (a)  if
given to the Trust in care of the Administrators at the Trust's mailing address set forth below (or such other address as the Trust may give notice of to the Holders
of the Securities): 

Coast
Bancorp Statutory Trust I

c/o Coast Bancorp

553 B Higuera Street

San Luis Obispo, California 93401

Attention: Thomas J. Sherman

Telecopy: 805-781-3180 

        (b)  if
given to the Institutional Trustee, at the Institutional Trustee's mailing address set forth below (or such other address as the Institutional Trustee may give notice
of to the Holders of the Securities): 

State
Street Bank and Trust Company of Connecticut, National Association

225 Asylum Street, Goodwin Square

Hartford, Connecticut 06103

Attention: Vice President, Corporate Trust Department

Telecopy: 860-244-1889 

With
a copy to: 

State
Street Bank and Trust Company

P.O. Box 778

Boston, Massachusetts 02102-0778

Attention: Paul D. Allen, Corporate Trust Department

Telecopy: 617-662-1462 

        (c)  if
given to the Holder of the Common Securities, at the mailing address of the Sponsor set forth below (or such other address as the Holder of the Common Securities may
give notice of to the Trust): 

Coast
Bancorp

553 B Higuera Street

San Luis Obispo, California 93401

Attention: Thomas J. Sherman

Telecopy: 805-781-3180 

35

 

        (d)  if
given to any other Holder, at the address set forth on the books and records of the Trust. 

        All
such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid except that if a notice or
other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver. 

        Section 13.2.    Governing Law.    This Declaration and the rights of the parties
hereunder shall be governed by and interpreted in accordance with the law of the State of Connecticut and all rights and remedies shall be governed by such laws without regard to the principles of
conflict of laws of the State of Connecticut or any other jurisdiction that would call for the application of the law of any jurisdiction other than the State of Connecticut;  provided, however, that
there shall not be applicable to the Trust, the Institutional Trustee or this Declaration any provision of the laws (statutory
or common) of the State of Connecticut pertaining to trusts that relate to or regulate, in a manner inconsistent with the terms hereof (a) the filing with any court or governmental body or
agency of trustee accounts or schedules of trustee fees and charges, (b) affirmative requirements to post bonds for trustees, officers, agents or employees of a trust, (c) the necessity
for obtaining court or other governmental approval concerning the acquisition, holding or disposition of real or personal property, (d) fees or other sums payable to trustees, officers, agents
or employees of a trust, (e) the allocation of receipts and expenditures to income or principal, or (f) restrictions or limitations on the permissible nature, amount or concentration of
trust investments or requirements relating to the titling, storage or other manner of holding or investing trust assets. 

        Section 13.3.    Intention of the Parties.    It is the intention of the parties hereto
that the Trust be classified for United States federal income tax purposes as a grantor trust. The provisions of this Declaration shall be interpreted to further this intention of the parties. 

        Section 13.4.    Headings.    Headings contained in this Declaration are inserted for
convenience of reference only and do not affect the interpretation of this Declaration or any provision hereof. 

        Section 13.5.    Successors and Assigns.    Whenever in this Declaration any of the
parties hereto is named or referred to, the successors and assigns of such party shall be deemed to be included, and all covenants and agreements in this Declaration by the Sponsor and the
Institutional Trustee shall bind and inure to the benefit of their respective successors and assigns, whether or not so expressed. 

        Section 13.6.    Partial Enforceability.    If any provision of this Declaration, or
the application of such provision to any Person or circumstance, shall be held invalid, the remainder of this Declaration, or the application of such provision to persons or circumstances other than
those to which it is held invalid, shall not be affected thereby. 

        Section 13.7.    Counterparts.    This Declaration may contain more than one
counterpart of the signature page and this Declaration may be executed by the affixing of the signature of each of the Institutional Trustee and Administrators to any of such counterpart signature
pages. All of such counterpart signature pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a single signature page. 

Signatures appear on the following page

36

 

        IN
WITNESS WHEREOF, the undersigned have caused these presents to be executed as of the day and year first above written. 

	 	 	STATE STREET BANK AND TRUST COMPANY OF

CONNECTICUT, NATIONAL ASSOCIATION,

as Institutional Trustee
	

 	
 	

 	

 	

 
	 	 	By:	/s/  PAUL D. ALLEN      

	 	 	 	Name:	Paul D. Allen
	 	 	 	Title:	Vice President
	

 	
 	

 	

 	

 
	 	 	COAST BANCORP, as Sponsor
	

 	
 	

 	

 	

 
	 	 	By:	/s/  JACK WAUCHOPE      

	 	 	 	Name:	Jack Wauchope
	 	 	 	Title:	Chairman/CEO
	

 	
 	

 	

 	

 
	 	 	COAST BANCORP STATUTORY TRUST I
	

 	
 	

 	

 	

 
	 	 	By:	/s/  JACK WAUCHOPE      

	 	 	 	Administrator
	

 	
 	

 	

 	

 
	 	 	By:	/s/  THOMAS J. SHERMAN      

	 	 	 	Administrator
	

 	
 	

 	

 	

 
	 	 	By:	/s/  JACK ROBASCIOTTI      

	 	 	 	Administrator
	 	 	 	 	 

37

  

 
 

ANNEX I
  
    TERMS OF SECURITIES    
  

        Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of September 26, 2002 (as amended from time to time, the
"Declaration"), the designation, rights, privileges, restrictions, preferences and other terms and provisions of the Capital Securities and the Common Securities are set out below (each capitalized
term used but not defined herein has the meaning set forth in the Declaration): 

        1.    Designation and Number.    

        (a)  5,000
Floating Rate Capital Securities of Coast Bancorp Statutory Trust I (the "Trust"), with an aggregate stated liquidation amount with respect to the assets of the
Trust of five million dollars ($5,000,000.00) and a stated liquidation amount with respect to the assets of the Trust of $1,000.00 per Capital Security, are hereby designated for the purposes of
identification only as the "Capital Securities". The Capital Security Certificates evidencing the Capital Securities shall be substantially in the form
of Exhibit A-1 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom or practice. 

        (b)  155
Floating Rate Common Securities of the Trust (the "Common Securities") will be evidenced by Common Security
Certificates substantially in the form of Exhibit A-2 to the Declaration, with such changes and additions thereto or deletions therefrom as may be required by ordinary usage, custom
or practice. 

        2.    Distributions.    

        (a)  Distributions
will be payable on each Security for the period beginning on (and including) the date of original issuance and ending on (but excluding)
December 26, 2002 at a rate per annum of 5.220% and shall bear interest for each successive period beginning on (and including) December 26, 2002, and each succeeding Distribution
Payment Date, and ending on (but excluding) the next succeeding Distribution Payment Date (each, a "Distribution Period") at a rate per annum equal to
the 3-Month
LIBOR, determined as described below, plus 3.400% (the "Coupon Rate"); provided, however, that prior to
September 26, 2007, the Coupon Rate shall not exceed 11.90%, applied to the stated liquidation amount thereof, such rate being the rate of interest payable on the Debentures to be held by the
Institutional Trustee. Distributions in arrears for more than one quarterly period will bear interest thereon compounded quarterly at the applicable Distribution Rate (to the extent permitted by law).
A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the Institutional Trustee and to the extent the Institutional Trustee has funds available
therefor. In the event that any date on which a Distribution is payable on the Securities is not a Business Day, then payment of interest payable on such date shall be made on the next succeeding day
which is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case with the same force and effect as if made on the date such payment was originally payable. The amount of interest payable for any Distribution
Period will be calculated by applying the Coupon Rate to the principal amount outstanding at the commencement of the Distribution Period and multiplying each such amount by the actual number of days
in the Distribution Period concerned divided by 360. All percentages resulting from any calculations on the Capital Securities will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used in or
resulting from such calculation will be rounded to the nearest cent (with one-half cent being rounded upward)). 

I-1

 

        (b)  Distributions
on the Securities will be cumulative, will accrue from the date of original issuance, and will be payable, subject to extension of distribution payment
periods as described herein, quarterly in arrears on March 26, June 26, September 26 and December 26 of each year, commencing on December 26, 2002 (each a
"Distribution Payment Date") when, as and if available for payment. The Debenture Issuer has the right under the Indenture to defer payments of interest
on the Debentures, so long as no Indenture Event of Default has occurred and is continuing, by deferring the payment of interest on the Debentures for up to 20 consecutive quarterly periods (each an
"Extension Period") at any time and from time to time, subject to the conditions described below, although such interest would continue to accrue on the
Debentures at the Distribution Rate compounded quarterly (to the extent permitted by law) during any Extension Period. No Extension Period may end on a date other than a Distribution Payment Date. At
the end of any such Extension Period the Debenture Issuer shall pay all interest then accrued and unpaid on the Debentures (together with Additional Interest thereon);  provided, however, that no
Extension Period may extend beyond the Maturity Date and provided further,
however, during any such Extension Period, the Debenture Issuer and its Affiliates shall not (i) declare or pay any dividends or distributions on, or redeem, purchase,
acquire, or make a liquidation payment with respect to, any of the Debenture Issuer's or its Affiliates' capital stock (other than payments of dividends or distributions to the Debenture Issuer) or
make any guarantee payments with respect to the foregoing, or (ii) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the
Debenture Issuer or any Affiliate that rank pari passu in all respects with or junior in interest to the Debentures (other than, with respect to clauses
(i) and (ii) above, (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Debenture Issuer in connection with any employment contract, benefit plan
or other similar arrangement with or for the benefit of one or more employees, officers, directors or consultants, in connection with a dividend reinvestment or stockholder stock purchase plan or in
connection with the issuance of capital stock of the Debenture Issuer (or securities convertible into or exercisable for such capital stock) as consideration in an acquisition transaction entered into
prior to the applicable Extension Period, (b) as a result of any exchange or conversion of any class or series of the Debenture Issuer's capital stock (or
any capital stock of a subsidiary of the Debenture Issuer) for any class or series of the Debenture Issuer's capital stock or of any class or series of the Debenture Issuer's indebtedness for any
class or series of the Debenture Issuer's capital stock, (c) the purchase of fractional interests in shares of the Debenture Issuer's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any stockholders' rights plan, or the issuance of rights,
stock or other property under any stockholders' rights plan, or the redemption or repurchase of rights pursuant thereto, (e) any dividend in the form of stock, warrants, options or other rights
where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks  pari passu with or junior to
such stock and any cash payments in lieu of fractional shares issued in connection therewith, or (f) payments under
the Capital Securities Guarantee). Prior to the termination of any Extension Period, the Debenture Issuer may further extend such period, provided that such period together with all such previous and
further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any Extension Period and upon the payment of all
accrued and unpaid interest and Additional Interest, the Debenture Issuer may commence a new Extension Period, subject to the foregoing requirements. No interest or Additional Interest shall be due
and payable during an Extension Period, except at the end thereof, but each installment of interest that would otherwise have been due and payable during such Extension Period shall bear Additional
Interest. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates, to Holders of the Securities as they appear on the books and
records of the Trust on the record date immediately preceding such date. Distributions on the Securities 

I-2

 

must be paid on the dates payable (after giving effect to any Extension Period) to the extent that the Trust has funds available for the payment of such distributions in the Property Account of the
Trust. The Trust's funds available for Distribution to the Holders of the Securities will be limited to payments received from the Debenture Issuer. The payment of Distributions out of moneys held by
the Trust is guaranteed by the Guarantor pursuant to the Guarantee. 

        (c)  Distributions
on the Securities will be payable to the Holders thereof as they appear on the books and records of the Trust on the relevant record dates. The relevant
record dates shall be 15 days before the relevant Distribution Payment Date. Distributions payable on any Securities that are not punctually paid on any Distribution Payment Date, as a result
of the Debenture Issuer having failed to make a payment under the Debentures, as the case may be, when due (taking into account any Extension Period), will cease to be payable to the Person in whose
name such Securities are registered on the relevant record date, and such defaulted Distribution will instead be payable to the Person in whose name such Securities are registered on the special
record date or other specified date determined in accordance with the Indenture. If any date on which Distributions are payable on the Securities is not a Business Day, then payment of the
Distribution payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay) except that, if such Business
Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on such payment date. 

        (d)  In
the event that there is any money or other property held by or for the Trust that is not accounted for hereunder, such property shall be distributed Pro Rata (as
defined herein) among the Holders of the Securities. 

        3.    Liquidation Distribution Upon Dissolution.    In the event of the voluntary or involuntary liquidation,
dissolution, winding-up or termination of the Trust (each a "Liquidation") other than in connection with a redemption of the Debentures, the
Holders of the Securities will be entitled to receive out of the assets of the Trust available for distribution to Holders of the Securities, after satisfaction of liabilities to creditors of the
Trust (to the extent not satisfied by the Debenture Issuer), distributions equal to the lesser of (i) the aggregate of the stated liquidation amount of $1,000.00 per Security plus accrued and
unpaid Distributions thereon to the date of payment, to the extent the Trust shall have funds available therefor, and (ii) the amount of assets of the Trust remaining available for distribution
to Holders in liquidation of the Trust (such amount being, in either case, the "Liquidation Distribution"), unless in connection with such Liquidation,
the Debentures in aggregate stated principal amount equal to the aggregate stated liquidation amount of such Securities, with an interest rate equal to the Distribution Rate of, and bearing accrued
and unpaid interest in an amount equal to the accrued and unpaid Distributions on, and having the same record date as, such Securities, after paying or making reasonable provision to pay all claims
and obligations of the Trust in accordance with the Statutory Trust Act, shall be distributed on a Pro Rata basis to the Holders of the Securities in exchange for such Securities. 

        The
Sponsor, as the Holder of all of the Common Securities, has the right at any time to dissolve the Trust (including, without limitation, upon the occurrence of a Special Event),
subject to the receipt by the Debenture Issuer of prior approval from the Board of Governors of the Federal Reserve System and any successor federal agency that is primarily responsible for regulating
the activities of the Sponsor (the "Federal Reserve"), if the Sponsor is a bank holding company, or from the Office of Thrift Supervision and any
successor federal agency that is primarily responsible for regulating the activities of Sponsor, (the "OTS") if the Sponsor is a savings and loan
holding company, in either case if then required under applicable capital guidelines or policies of the Federal Reserve or OTS, as applicable, and, after satisfaction of liabilities to creditors of
the Trust, cause the Debentures to be distributed to the Holders of the Securities on a Pro Rata basis in accordance with the aggregate stated liquidation amount thereof. 

I-3

 

        If
a Liquidation of the Trust occurs as described in clause (i), (ii), (iii) or (v) in Section 7.1(a) of the Declaration, the Trust shall be liquidated by the
Institutional Trustee as expeditiously as it determines to be possible by distributing, after satisfaction of liabilities to creditors of the Trust, to the Holders of the Securities, the Debentures on
a Pro Rata basis to the extent not satisfied by the Debenture Issuer, unless such distribution is determined by the Institutional Trustee not to be practical, in which event such Holders will be
entitled to receive out of the assets of the Trust available for distribution to the Holders, after satisfaction of liabilities of creditors of the Trust to the extent not satisfied by the Debenture
Issuer, an amount equal to the Liquidation Distribution. An early Liquidation of the Trust pursuant to clause (iv) of Section 7.1(a) of the Declaration shall occur if the Institutional
Trustee determines that such Liquidation is possible by distributing, after satisfaction of liabilities to creditors of Trust, to the Holders of the Securities on a Pro Rata basis, the Debentures, and
such distribution occurs. 

        If,
upon any such Liquidation the Liquidation Distribution can be paid only in part because the Trust has insufficient assets available to pay in full the aggregate Liquidation
Distribution, then the amounts payable directly by the Trust on such Capital Securities shall be paid to the Holders of the Trust Securities on a Pro Rata basis, except that if an Event of Default has
occurred and is continuing, the Capital Securities shall have a preference over the Common Securities with regard to such distributions. 

        After
the date for any distribution of the Debentures upon dissolution of the Trust (i) the Securities of the Trust will be deemed to be no longer outstanding, (ii) upon
surrender of a Holder's Securities certificate, such Holder of the Securities will receive a certificate representing the Debentures to be delivered upon such distribution, and (iii) any
certificates representing the Securities still outstanding will be deemed to represent undivided beneficial interests in such of the Debentures as have an aggregate principal amount equal to the
aggregate stated liquidation amount with an interest rate identical to the Distribution Rate of, and bearing accrued and unpaid interest equal to accrued and unpaid distributions on, the Securities
until such certificates are presented to the Debenture Issuer or its agent for transfer or reissuance (and until such certificates are so surrendered, no payments of interest or principal shall be
made to Holders of Securities in respect of any payments due and payable under the Debentures; provided, however that such failure to pay shall not be
deemed to be an Event of Default and shall not entitle the Holder to the benefits of the Guarantee), and (iv) all rights of Holders of Securities under the Declaration shall cease, except the
right of such Holders to receive Debentures upon surrender of certificates representing such Securities. 

        4.    Redemption and Distribution.    

        (a)  The
Debentures will mature on September 26, 2032. The Debentures may be redeemed by the Debenture Issuer, in whole or in part at any time and from time to time on
or after September 26, 2007, at the Redemption Price. In addition, the Debentures may be redeemed by the Debenture Issuer at the Special Redemption Price, in whole but not in part, at any
Distribution Payment Date, upon the occurrence and continuation of a Special Event within 120 days following the occurrence of such Special Event at the Special Redemption Price, upon not less
than 30 nor more than 60 days' notice to holders of such Debentures so long as such Special Event is continuing. In each case, the right of the Debenture Issuer to redeem the Debentures is
subject to the Debenture Issuer having received prior approval from the Federal Reserve (if the Debenture Issuer is a bank holding company) or prior approval from the OTS (if the Debenture Issuer is a
savings and loan holding company), in each case if then required under applicable capital guidelines or policies of the applicable federal agency. 

I-4

 

        "3-Month LIBOR" means the London interbank offered interest rate for three-month, U.S. dollar deposits determined by the
Debenture Trustee in the following order of priority: 

        (1)  the
rate (expressed as a percentage per annum) for U.S. dollar deposits having a three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m. (London
time) on the related Determination Date (as defined below). "Telerate Page 3750" means the display designated as "Page 3750" on the Dow Jones Telerate Service or such other page as may replace Page
3750 on that service or such other service or services as may be nominated by the British Bankers' Association as the information vendor for the purpose of displaying London interbank offered rates
for U.S. dollar deposits; 

        (2)  if
such rate cannot be identified on the related Determination Date, the Debenture Trustee will request the principal London offices of four leading banks in the London
interbank market to provide such banks' offered quotations (expressed as percentages per annum) to prime banks in the London interbank market for U.S. dollar deposits having a three-month maturity as
of 11:00 a.m. (London time) on such Determination Date. If at least two quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; 

        (3)  if
fewer than two such quotations are provided as requested in clause (2) above, the Debenture Trustee will request four major New York City banks to provide such
banks' offered quotations (expressed as percentages per annum) to leading European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two
such quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; and 

        (4)  if
fewer than two such quotations are provided as requested in clause (3) above, 3-Month LIBOR will be a 3-Month LIBOR determined with
respect to the Distribution Period immediately preceding such current Distribution Period. 

        If
the rate for U.S. dollar deposits having a three-month maturity that initially appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination Date is
superseded on the Telerate Page 3750 by a corrected rate by 12:00 noon (London time) on such Determination Date, then the corrected rate as so substituted on the applicable page will be the applicable
3-Month LIBOR for such Determination Date. 

        The
Coupon Rate for any Distribution Period will at no time be higher than the maximum rate then permitted by New York law as the same may be modified by United States law. 

        "Capital Treatment Event" means the receipt by the Debenture Issuer and the Trust of an opinion of counsel experienced in such matters to
the effect that, as a result of the occurrence of any amendment to, or change (including any announced prospective change) in, the laws, rules or regulations of the United States or any political
subdivision thereof or therein, or as the result of any official or administrative pronouncement or action or decision interpreting or applying such laws, rules or regulations, which amendment or
change is effective or which pronouncement, action or decision is announced on or after the date of original issuance of the Debentures, there is more than an insubstantial risk that the Sponsor will
not, within 90 days of the date of such opinion, be entitled to
treat an amount equal to the aggregate liquidation amount of the Debentures as "Tier 1 Capital" (or its then equivalent) for purposes of the capital adequacy guidelines of the Federal Reserve, as then
in effect and applicable to the Sponsor (or if the Sponsor is not a bank holding company, such guidelines applied to the Sponsor as if the Sponsor were subject to such guidelines);  provided, however,
that the inability of the Sponsor to treat all or any portion of the liquidation amount of the Debentures as Tier l Capital shall not
constitute the basis for a Capital Treatment Event, if such inability results from the Sponsor having cumulative preferred stock, minority interests in consolidated subsidiaries, or any other class of
security or interest which the Federal Reserve or OTS, as applicable, may now or hereafter accord Tier 1 Capital treatment in excess of the amount which may now or hereafter qualify for 

I-5

 

treatment as Tier 1 Capital under applicable capital adequacy guidelines; provided further, however, that the distribution of Debentures in connection
with the Liquidation of the Trust shall not in and of itself constitute a Capital Treatment Event unless such Liquidation shall have occurred in connection with a Tax Event or an Investment Company
Event. 

        "Determination Date" means the date that is two London Banking Days (i.e., a business day in which dealings in deposits in U.S. dollars
are transacted in the London interbank market) preceding the particular Distribution Period for which a Coupon Rate is being determined. 

        "Investment Company Event" means the receipt by the Debenture Issuer and the Trust of an opinion of counsel experienced in such matters to
the effect that, as a result of the occurrence of a change in law or regulation or written change (including any announced prospective change) in interpretation or application of law or regulation by
any legislative body, court, governmental agency or regulatory authority, there is more than an insubstantial risk that the Trust is or, within 90 days of the date of such opinion, will be
considered an Investment Company that is required to be registered under the Investment Company Act which change or prospective change becomes effective or would become effective, as the case may be,
on or after the date of the issuance of the Debentures. 

        "Maturity Date" means September 26, 2032. 

        "Redemption Date" shall mean the date fixed for the redemption of Capital Securities, which shall be March 26, June 26,
September 26 or December 26 commencing September 26, 2007. 

        "Redemption Price" means 100% of the principal amount of the Debentures being redeemed, plus accrued and unpaid interest on such
Debentures to the Redemption Date. 

        "Special Event" means a Tax Event, an Investment Company Event or a Capital Treatment Event. 

        "Special Redemption Date" means a date on which a Special Event redemption occurs, which shall be March 26, June 26,
September 26 or December 26. 

        "Special Redemption Price" means (i) 107.5% of the principal amount of the Debentures being redeemed on a Special Redemption Date
that occurs before September 26, 2007 and (ii) 100% of the principal amount of the Debentures being redeemed on a Special Redemption Date that occurs on September 26, 2007 or
after, plus, in each case, accrued and unpaid interest on such Debentures to the Special Redemption Date. 

        "Tax Event" means the receipt by the Debenture Issuer and the Trust of an opinion of counsel experienced in such matters to the effect
that, as a result of any amendment to or change (including any announced prospective change) in the laws or any regulations thereunder of the United States or any political subdivision or taxing
authority thereof or therein, or as a result of any official administrative pronouncement (including any private letter ruling, technical advice memorandum, field service advice, regulatory procedure,
notice or announcement including any notice or announcement of intent to adopt such procedures or regulations (an "Administrative Action")) or judicial
decision interpreting or applying such laws or regulations, regardless of whether such Administrative Action or judicial decision is issued to or in connection with a proceeding involving the
Debenture Issuer or the Trust and whether or not subject to review or appeal, which amendment, clarification, change, Administrative Action or decision is enacted, promulgated or announced, in each
case on or after the date of original issuance of the Debentures, there is more than an insubstantial risk that: (i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or accrued on the Debentures; (ii) interest payable by the Debenture Issuer on the Debentures is not, or within
90 days of the date of such opinion, will not be, deductible by the Debenture Issuer, in whole or in part, for United States federal income tax purposes; or (iii) the Trust is, or will
be within 90 days of the date of such opinion, subject to more than a de minimis amount of other taxes, duties or other governmental charges. 

I-6

 

        (b)  Upon
the repayment in full at maturity or redemption in whole or in part of the Debentures (other than following the distribution of the Debentures to the Holders of the
Securities), the proceeds from such repayment or payment shall concurrently be applied to redeem Pro Rata at the applicable Redemption Price or Special Redemption Price, as applicable, Securities
having an aggregate liquidation amount equal to the aggregate principal amount of the Debentures so repaid or redeemed; provided, however, that holders
of such Securities shall be given not less than 30 nor more than 60 days' notice of such redemption (other than at the scheduled maturity of the Debentures). 

        (c)  If
fewer than all the outstanding Securities are to be so redeemed, the Common Securities and the Capital Securities will be redeemed Pro Rata and the Capital Securities
to be redeemed will be redeemed Pro Rata from each Holder of Capital Securities. 

        (d)  The
Trust may not redeem fewer than all the outstanding Capital Securities unless all accrued and unpaid Distributions have been paid on all Capital Securities for all
quarterly Distribution periods terminating on or before the date of redemption. 

        (e)  Redemption or Distribution Procedures. 

        (i)    Notice
of any redemption of or notice of distribution of the Debentures in exchange for, the Securities (a "Redemption/Distribution
Notice") will be given by the Trust by mail to each Holder of Securities to be redeemed or exchanged not fewer than 30 nor more than 60 days before the date fixed for
redemption or exchange thereof which, in the case of a redemption, will be the date fixed for redemption of the Debentures. For purposes of the calculation of the date of redemption or exchange and
the dates on which notices are given pursuant to this paragraph 4(e)(i), a Redemption/Distribution Notice shall be deemed to be given on the day such notice is first mailed by first-class mail,
postage prepaid, to Holders of such Securities. Each Redemption/Distribution Notice shall be addressed to the Holders of such Securities at the address of each such Holder appearing on the books and
records of the Trust. No defect in the Redemption/Distribution Notice or in the mailing thereof with respect to any Holder shall affect the validity of the redemption or exchange proceedings with
respect to any other Holder. 

        (ii)  If
the Securities are to be redeemed and the Trust gives a Redemption/ Distribution Notice, which notice may only be issued if the Debentures are redeemed as set out in
this paragraph 4 (which notice will be irrevocable), then, provided that the Institutional Trustee has a sufficient amount of cash in connection
with the related redemption or maturity of the Debentures, the Institutional Trustee will pay the relevant Redemption Price or Special Redemption Price, as applicable, to the Holders of such
Securities by check mailed to the address of each such Holder appearing on the books and records of the Trust on the Redemption Date. If a Redemption/Distribution Notice shall have been given and
funds deposited as required then immediately prior to the close of business on the date of such deposit Distributions will cease to accrue on the Securities so called for redemption and all rights of
Holders of such Securities so called for redemption will cease, except the right of the Holders of such Securities to receive the applicable Redemption Price or Special Redemption Price specified in
paragraph 4(a), but without interest on such Redemption Price or Special Redemption Price. If any date fixed for redemption of Securities is not a Business Day, then payment of any such
Redemption Price or Special Redemption Price payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such
delay) except that, if such Business Day falls in the next calendar year, such payment will be made on the immediately preceding Business Day, in each case with the same force and effect as if made on
such date fixed for redemption. If payment of the Redemption Price or Special Redemption Price in respect of any Securities is 

I-7

 

improperly withheld or refused and not paid either by the Trust or by the Debenture Issuer as guarantor pursuant to the Guarantee, Distributions on such Securities will continue to accrue at the
Distribution Rate from the original Redemption Date to the actual date of payment, in which case the actual payment date will be considered the date fixed for redemption for purposes of calculating
the Redemption Price or Special Redemption Price. In the event of any redemption of the Capital Securities issued by the Trust in part, the Trust shall not be required to (i) issue, register
the transfer of or exchange any Security during a period beginning at the opening of business 15 days before any selection for redemption of the Capital Securities and ending at the close of
business on the earliest
date on which the relevant notice of redemption is deemed to have been given to all Holders of the Capital Securities to be so redeemed or (ii) register the transfer of or exchange any Capital
Securities so selected for redemption, in whole or in part, except for the unredeemed portion of any Capital Securities being redeemed in part. 

        (iii)  Redemption/Distribution
Notices shall be sent by the Administrators on behalf of the Trust to (A) in respect of the Capital Securities, the Holders thereof and
(B) in respect of the Common Securities, the Holder thereof. 

        (iv)  Subject
to the foregoing and applicable law (including, without limitation, United States federal securities laws), and provided that the acquiror is not the Holder of
the Common Securities or the obligor under the Indenture, the Sponsor or any of its subsidiaries may at any time and from time to time purchase outstanding Capital Securities by tender, in the open
market or by private agreement. 

        5.    Voting Rights—Capital Securities.    

        (a)  Except
as provided under paragraphs 5(b) and 7 and as otherwise required by law and the Declaration, the Holders of the Capital Securities will have no voting rights.
The Administrators are required to call a meeting of the Holders of the Capital Securities if directed to do so by Holders of at least 10% in liquidation amount of the Capital Securities. 

        (b)  Subject
to the requirements of obtaining a tax opinion by the Institutional Trustee in certain circumstances set forth in the last sentence of this paragraph, the
Holders of a Majority in liquidation amount of the Capital Securities, voting separately as a class, have the right to direct the time, method, and place of conducting any proceeding for any remedy
available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional Trustee under the Declaration, including the right to direct the Institutional Trustee, as
holder of the Debentures, to (i) exercise the remedies available under the Indenture as the holder of the Debentures, (ii) waive any past default that is waivable under the Indenture,
(iii) exercise any right to rescind or annul a declaration that the principal of all the Debentures shall be due and payable or (iv) consent on behalf of all the Holders of the Capital
Securities to any amendment, modification or termination of the Indenture or the Debentures where such consent shall be required; provided, however,
that, where a consent or action under the Indenture would require the consent or act of the holders of greater than a simple majority in aggregate principal amount of Debentures (a
"Super Majority") affected thereby, the Institutional Trustee may only give such consent or take such action at the written direction of the Holders of
at least the proportion in liquidation amount of the Capital Securities outstanding which the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. If the
Institutional Trustee fails to enforce its rights under the Debentures after the Holders of a Majority in liquidation amount of such Capital Securities have so directed the Institutional Trustee, to
the fullest extent permitted by law, a Holder of the Capital Securities may institute a legal proceeding directly against the Debenture Issuer to enforce the Institutional Trustee's rights under the
Debentures without first instituting any legal proceeding against the Institutional Trustee or any 

I-8

 

other person or entity. Notwithstanding the foregoing, if an Event of Default has occurred and is continuing and such event is attributable to the failure of the Debenture Issuer to pay interest or
principal on the Debentures on the date the interest or principal is payable (or in the case of redemption, the Redemption Date or the Special Redemption Date, as applicable), then a Holder of record
of the Capital Securities may directly institute a proceeding for enforcement of payment on or after the respective due dates specified in the Debentures, to such Holder directly of the principal of
or interest on the Debentures having an aggregate principal amount equal to the aggregate liquidation amount of the Capital Securities of such Holder. The Institutional Trustee shall notify all
Holders of the Capital Securities of any default actually known to the Institutional Trustee with respect to the Debentures unless (x) such default has been cured prior to the giving of such
notice or (y) the Institutional Trustee determines in good faith that the withholding of such notice is in the interest of the Holders of such Capital Securities, except where the default
relates to the payment of principal of or interest on any of the Debentures. Such notice shall state that such Indenture Event of Default also constitutes an Event of Default hereunder. Except with
respect to directing the time, method and place of conducting a proceeding for a remedy, the Institutional Trustee shall not take any of the actions described in clauses (i), (ii) or
(iii) above unless the Institutional Trustee has obtained an opinion of tax counsel to the effect that, as a result of such action, the Trust will not be classified as other than a grantor
trust for United States federal income tax purposes. 

        In
the event the consent of the Institutional Trustee, as the holder of the Debentures is required under the Indenture with respect to any amendment, modification or termination of the
Indenture, the Institutional Trustee shall request the direction of the Holders of the Securities with respect to such amendment modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation amount of the Securities voting together as a single class; provided,
however, that where a consent under the Indenture would require the consent of a Super-Majority, the Institutional Trustee may only give such consent at the direction of the
Holders of at least the proportion in liquidation amount of the Securities outstanding which the relevant Super-Majority represents of the aggregate principal amount of the Debentures outstanding. The
Institutional Trustee shall not take any such action in accordance with the directions of the Holders of the Securities unless the Institutional Trustee has obtained an opinion of tax counsel to the
effect that, as a result of such action, the Trust will not be classified as other than a grantor trust for United States federal income tax purposes. 

        A
waiver of an Indenture Event of Default will constitute a waiver of the corresponding Event of Default hereunder. Any required approval or direction of Holders of the Capital
Securities may be given at a separate meeting of Holders of the Capital Securities convened for such purpose, at a meeting of all of the Holders of the Securities in the Trust or pursuant to written
consent. The Institutional Trustee will cause a notice of any meeting at which Holders of the Capital Securities are entitled to vote, or of any matter upon which action by written consent of such
Holders is to be taken, to be mailed to each Holder of record of the Capital Securities. Each such notice will include a statement setting forth the following information (i) the date of such
meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of such matter
upon which written consent is sought and (iii) instructions for the delivery of proxies or consents. No vote or consent of the Holders of the Capital Securities will be required for the Trust
to redeem and cancel Capital Securities or to distribute the Debentures in accordance with the Declaration and the terms of the Securities. 

        Notwithstanding
that Holders of the Capital Securities are entitled to vote or consent under any of the circumstances described above, any of the Capital Securities that are owned by the
Sponsor or any Affiliate of the Sponsor shall not entitle the Holder thereof to vote or consent and shall, for purposes of such vote or consent, be treated as if such Capital Securities were not
outstanding. 

I-9

 

        In
no event will Holders of the Capital Securities have the right to vote to appoint, remove or replace the Administrators, which voting rights are vested exclusively in the Sponsor as
the Holder of all of the Common Securities of the Trust. Under certain circumstances as more fully described in the Declaration, Holders of Capital Securities have the right to vote to appoint, remove
or replace the Institutional Trustee. 

        6.    Voting Rights—Common Securities.    

        (a)  Except
as provided under paragraphs 6(b), 6(c) and 7 and as otherwise required by law and the Declaration, the Common Securities will have no voting rights. 

        (b)  The
Holders of the Common Securities are entitled, in accordance with Article IV of the Declaration, to vote to appoint, remove or replace any Administrators. 

        (c)  Subject
to Section 6.7 of the Declaration and only after each Event of Default (if any) with respect to the Capital Securities has been cured, waived, or
otherwise eliminated and subject to the requirements of the second to last sentence of this paragraph, the Holders of a Majority in liquidation amount of the Common Securities, voting separately as a
class, may direct the time, method, and place of conducting any proceeding for any remedy available to the Institutional Trustee, or exercising any trust or power conferred upon the Institutional
Trustee under the Declaration, including (i) directing the time, method, place of conducting any proceeding for any remedy available to the Debenture Trustee, or exercising any trust or power
conferred on the Debenture Trustee with respect to the Debentures, (ii) waive any past default and its consequences that is waivable under the Indenture, or (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall be due and payable; provided, however, that, where a consent or action
under the Indenture would require a Super Majority, the Institutional Trustee may only give such consent or take such action at the written direction of the Holders of at least the proportion in
liquidation amount of the Common Securities which the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. Notwithstanding this paragraph 6(c),
the Institutional Trustee shall not revoke any action previously authorized or approved by a vote or consent of the Holders of the Capital Securities. Other than with respect to directing the time,
method and place of conducting any proceeding for any remedy available to the Institutional Trustee or the Debenture Trustee as set forth above, the Institutional Trustee shall not take any action
described in (i), (ii) or (iii) above, unless the Institutional Trustee has obtained an
opinion of tax counsel to the effect that for the purposes of United States federal income tax the Trust will not be classified as other than a grantor trust on account of such action. If the
Institutional Trustee fails to enforce its rights under the Declaration to the fullest extent permitted by law, any Holder of the Common Securities may institute a legal proceeding directly against
any Person to enforce the Institutional Trustee's rights under the Declaration, without first instituting a legal proceeding against the Institutional Trustee or any other Person. 

        Any
approval or direction of Holders of the Common Securities may be given at a separate meeting of Holders of the Common Securities convened for such purpose, at a meeting of all of the
Holders of the Securities in the Trust or pursuant to written consent. The Administrators will cause a notice of any meeting at which Holders of the Common Securities are entitled to vote, or of any
matter upon which action by written consent of such Holders is to be taken, to be mailed to each Holder of the Common Securities. Each such notice will include a statement setting forth (i) the
date of such meeting or the date by which such action is to be taken, (ii) a description of any resolution proposed for adoption at such meeting on which such Holders are entitled to vote or of
such matter upon which written consent is sought and (iii) instructions for the delivery of proxies or consents. 

        No
vote or consent of the Holders of the Common Securities will be required for the Trust to redeem and cancel Common Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities. 

I-10

 

        7.    Amendments to Declaration and Indenture.    

        (a)  In
addition to any requirements under Section 11.1 of the Declaration, if any proposed amendment to the Declaration provides for, or the Institutional Trustee,
Sponsor or Administrators otherwise propose to effect, (i) any action that would adversely affect the powers, preferences or special rights of the Securities, whether by way of amendment to the
Declaration or otherwise, or (ii) the Liquidation of the Trust, other than as described in Section 7.1 of the Declaration, then the Holders of outstanding Securities, voting together as
a single class, will be entitled to vote on such amendment or proposal and such amendment or proposal shall not be effective except with the approval of the Holders of at least a Majority in
liquidation amount of the Securities, affected thereby; provided, however, if any amendment or proposal referred to in clause (i) above would
adversely affect only the Capital Securities or only the Common Securities, then only the affected class will be entitled to vote on such amendment or proposal and such amendment or proposal shall not
be effective except with the approval of a Majority in liquidation amount of such class of Securities. 

        (b)  In
the event the consent of the Institutional Trustee as the holder of the Debentures is required under the Indenture with respect to any amendment, modification or
termination of the Indenture or the Debentures, the Institutional Trustee shall request the written direction of the Holders of the Securities with respect to such amendment, modification or
termination and shall vote with respect to
such amendment, modification, or termination as directed by a Majority in liquidation amount of the Securities voting together as a single class; provided,
however, that where a consent under the Indenture would require a Super Majority, the Institutional Trustee may only give such consent at the direction of the Holders of at
least the proportion in liquidation amount of the Securities which the relevant Super Majority represents of the aggregate principal amount of the Debentures outstanding. 

        (c)  Notwithstanding
the foregoing, no amendment or modification may be made to the Declaration if such amendment or modification would (i) cause the Trust to be
classified for purposes of United States federal income taxation as other than a grantor trust, (ii) reduce or otherwise adversely affect the powers of the Institutional Trustee or
(iii) cause the Trust to be deemed an Investment Company which is required to be registered under the Investment Company Act. 

        (d)  Notwithstanding
any provision of the Declaration, the right of any Holder of the Capital Securities to receive payment of distributions and other payments upon
redemption or otherwise, on or after their respective due dates, or to institute a suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder. For the protection and enforcement of the foregoing provision, each and every Holder of the Capital Securities shall be entitled to such relief as can be given
either at law or equity. 

        8.    Pro Rata.    A reference in these terms of the Securities to any payment, distribution or treatment as being
"Pro Rata" shall mean pro rata to each Holder of the Securities according to the aggregate liquidation amount of the Securities held by the relevant
Holder in relation to the aggregate liquidation amount of all Securities then outstanding unless, in relation to a payment, an Event of Default has occurred and is continuing, in which case any funds
available to make such payment shall be paid first to each Holder of the Capital Securities Pro Rata according to the aggregate liquidation amount of the Capital Securities held by the relevant Holder
relative to the aggregate liquidation amount of all Capital Securities outstanding, and only after satisfaction of all amounts owed to the Holders of the Capital Securities, to each Holder of the
Common Securities Pro Rata according to the aggregate liquidation amount of the Common Securities held by the relevant Holder relative to the aggregate liquidation amount of all Common Securities
outstanding. 

I-11

 

        9.    Ranking.    The Capital Securities rank pari passu with and
payment thereon shall be made Pro Rata with the Common Securities except that, where an Event of Default has occurred and is continuing, the rights of Holders of the Common Securities to receive
payment of Distributions and payments upon liquidation, redemption and otherwise are subordinated to the rights of the Holders of the Capital Securities with the result that no payment of any
Distribution on, or Redemption Price (or Special Redemption Price) of, any Common Security, and no other payment on account of redemption, liquidation or other acquisition of Common Securities, shall
be made unless payment in full in cash of all accumulated and unpaid Distributions on all outstanding Capital Securities for all distribution periods terminating on or prior thereto, or in the case of
payment of the Redemption Price (or Special Redemption Price) the full amount of such Redemption Price (or Special Redemption Price) on all outstanding Capital Securities then called for redemption,
shall have been made or provided for, and
all funds immediately available to the Institutional Trustee shall first be applied to the payment in full in cash of all Distributions on, or the Redemption Price (or Special Redemption Price) of,
the Capital Securities then due and payable. 

        10.    Acceptance of Guarantee and Indenture.    Each Holder of the Capital Securities and the Common Securities, by
the acceptance of such Securities, agrees to the provisions of the Guarantee, including the subordination provisions therein and to the provisions of the Indenture. 

        11.    No Preemptive Rights.    The Holders of the Securities shall have no preemptive or similar rights to subscribe
for any additional securities. 

        12.    Miscellaneous.    These terms constitute a part of the Declaration. The Sponsor will provide a copy of the
Declaration, the Guarantee, and the Indenture to a Holder without charge on written request to the Sponsor at its principal place of business. 

I-12

  

 
 

EXHIBIT A-1
  
    FORM OF CAPITAL SECURITY CERTIFICATE    
  

[FORM
OF FACE OF SECURITY] 

        THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAW. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY ONLY (A) TO THE SPONSOR OR THE TRUST, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS SECURITY IS ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A IN ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF REGULATION
S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL
SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE SPONSOR'S AND THE TRUST'S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN ACCORDANCE WITH THE DECLARATION OF
TRUST, A COPY OF WHICH MAY BE OBTAINED FROM THE SPONSOR OR THE TRUST. HEDGING TRANSACTIONS INVOLVING
THIS SECURITY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. 

        THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH A "PLAN"), OR AN
ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY, AND NO PERSON INVESTING "PLAN ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THE SECURITIES OR ANY
INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60,
91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE 

A-1-1

 

REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH
PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION. 

        THIS
SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A LIQUIDATION AMOUNT OF NOT LESS THAN $500,000.00 (500 SECURITIES) AND MULTIPLES OF $1,000.00 IN EXCESS THEREOF.
ANY ATTEMPTED TRANSFER OF SECURITIES IN A BLOCK HAVING A LIQUIDATION AMOUNT OF LESS THAN $500,000.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. 

        THE
HOLDER OF THIS SECURITY AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS. 

        IN
CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE DECLARATION TO CONFIRM THAT
THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 

	Certificate Number P-1	 	5,000 Capital Securities
	

September 26, 2002
	

Certificate Evidencing Floating Rate Capital Securities
	

of
	

Coast Bancorp Statutory Trust I
	

(liquidation amount $1,000.00 per Capital Security)

        Coast
Bancorp Statutory Trust I, a statutory trust created under the laws of the State of Connecticut (the "Trust"), hereby certifies that Hare & Co. (the "Holder"), as the
nominee of The Bank of New York, indenture trustee under the Indenture dated as of September 26, 2002 among Preferred Term Securities VII, Ltd., Preferred Term Securities
VII, Inc. and The Bank of New York is the registered owner of capital securities of the Trust representing undivided beneficial interests in the assets of the Trust, (liquidation amount
$1,000.00 per capital security) (the "Capital Securities"). Subject to the Declaration (as defined below), the Capital Securities are transferable on the books and records of the Trust in person or by
a duly authorized attorney, upon surrender of this Certificate duly endorsed and in proper form for transfer. The designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Capital Securities represented hereby are issued pursuant to, and shall in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of September 26, 2002, among Jack C. Wauchope, Thomas J. Sherman and Jack Robasciotti as Administrators, State Street Bank and Trust Company of Connecticut, National Association, as
Institutional Trustee, Coast Bancorp, as Sponsor, and the holders from time to time of undivided beneficial interests in the assets of the Trust, including the designation of the terms of the Capital
Securities as set forth in Annex I to such amended and restated declaration as the same may be amended from time to time (the "Declaration"). Capitalized terms used herein but not defined shall have
the meaning given them in the Declaration. The Holder is entitled to the benefits of the Guarantee to the extent provided therein. The Sponsor will provide a copy of the Declaration, the 

A-1-2

 

Guarantee, and the Indenture to the Holder without charge upon written request to the Trust at its principal place of business. 

        Upon
receipt of this Security, the Holder is bound by the Declaration and is entitled to the benefits thereunder. 

        By
acceptance of this Security, the Holder agrees to treat, for United States federal income tax purposes, the Debentures as indebtedness and the Capital Securities as evidence of
beneficial ownership in the Debentures. 

        This
Capital Security is governed by, and construed in accordance with, the laws of the State of Connecticut, without regard to principles of conflict of laws. 

Signatures appear on following page

A-1-3

 

IN WITNESS WHEREOF, the Trust has duly executed this certificate. 

	 	 	COAST BANCORP STATUTORY TRUST I
	

 	
 	

 	

 	

 
	 	 	By:	 	 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	Administrator
	

 	
 	

 	

 	

 

 
 

CERTIFICATE OF AUTHENTICATION    
  

        This is one of the Capital Securities referred to in the within-mentioned Declaration. 

	 	 	STATE STREET BANK AND TRUST COMPANY OF

CONNECTICUT, NATIONAL ASSOCIATION,

as the Institutional Trustee
	

 	
 	

 	

 
	 	 	By:	 
	 	 	 	

	 	 	 	Authorized Officer
	 	 	 	 

A-1-4

 
[FORM OF REVERSE OF SECURITY]  

        Distributions payable on each Capital Security will be payable at an annual rate equal to 5.220% beginning on (and including) the date of original issuance and
ending on (but excluding) December 26, 2002 and at an annual rate for each successive period beginning on (and including) December 26, 2002, and each succeeding Distribution Payment
Date, and ending on (but excluding) the next succeeding Distribution Payment Date (each a "Distribution Period"), equal to 3-Month LIBOR, determined as described below, plus 3.400% (the
"Coupon Rate"); provided, however, that prior to September 26, 2007, the Coupon Rate shall not exceed 11.90%, applied to the stated liquidation
amount of $1,000.00 per Capital Security, such rate being the rate of interest payable on the Debentures to be held by the Institutional Trustee. Distributions in arrears for more than a quarterly
period will bear interest thereon compounded quarterly at the Distribution Rate (to the extent permitted by applicable law). The term "Distributions" as used herein includes payments of Interest and
any principal on the Debentures held by the Institutional Trustee unless otherwise stated. A Distribution is payable only to the extent that payments are made in respect of the Debentures held by the
Institutional Trustee and to the extent the Institutional Trustee has funds available therefor. As used herein, "Determination Date" means the date that is two London Banking Days (i.e., a business
day in which dealings in deposits in U.S. dollars are transacted in the London interbank market) preceding the commencement of the relevant Distribution Period. In the event that any date on which a
Distribution is payable on this Capital Security is not a Business Day, then a payment of the Distribution payable on such date will be made on the next succeeding day which is a Business Day (and
without any Distribution or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. The amount of interest payable for any Distribution Period will be
calculated by applying the Coupon Rate to the principal amount outstanding at the commencement of the Distribution Period and multiplying each such amount by the actual number of days in the
Distribution Period concerned divided by 360. 

        "3-Month
LIBOR" as used herein, means the London interbank offered interest rate for three-month U.S. dollar deposits determined by the Debenture Trustee in the following
order of priority: (i) the rate
(expressed as a percentage per annum) for U.S. dollar deposits having a three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination Date
("Telerate Page 3750" means the display designated as "Page 3750" on the Dow Jones Telerate Service or such other page as may replace Page 3750 on that service or such other service or services as may
be nominated by the British Bankers' Association as the information vendor for the purpose of displaying London interbank offered rates for U.S. dollar deposits); (ii) if such rate cannot be
identified on the related Determination Date, the Debenture Trustee will request the principal London offices of four leading banks in the London interbank market to provide such banks' offered
quotations (expressed as percentages per annum) to prime banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on such
Determination Date. If at least two quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two such quotations are provided as
requested in clause (ii) above, the Debenture Trustee will request four major New York City banks to provide such banks' offered quotations (expressed as percentages per annum) to leading
European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and (iv) if fewer than two such quotations are provided as requested in clause (iii) above, 3-Month LIBOR will be a 3-Month
LIBOR determined with respect to the Distribution Period immediately preceding such current Distribution Period. If the rate for U.S. dollar deposits having a three-month maturity that initially
appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination Date is superseded on the Telerate Page 3750 by a corrected rate by 12:00 noon (London time) on such 

A-1-5

 

Determination Date, then the corrected rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such Determination Date. 

        The
Coupon Rate for any Distribution Period will at no time be higher than the maximum rate then permitted by New York law as the same may be modified by United States law. 

        All
percentages resulting from any calculations on the Capital Securities will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used in or resulting from such
calculation will be rounded to the nearest cent (with one-half cent being rounded upward)). 

        Except
as otherwise described below, Distributions on the Capital Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears
on March 26, June 26, September 26 and December 26 of each year, commencing on December 26, 2002. The Debenture Issuer has the right under the Indenture to defer
payments of interest on the Debentures by extending the interest payment period for up to 20 consecutive quarterly periods (each an "Extension Period") on the Debentures, subject to the conditions
described below, although such interest would continue to accrue on the Debentures at an annual rate equal to the Distribution Rate compounded quarterly to the extent permitted by law during any
Extension Period. No Extension Period may end on a date other than a Distribution Payment Date. At the end of any such Extension Period the Debenture Issuer shall pay all interest then accrued and
unpaid on the Debentures (together with Additional Interest thereon); provided, however, that no Extension Period may extend beyond the Maturity Date.
Prior to the termination of any Extension Period, the Debenture Issuer may further extend such period,
provided that such period together with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest, the Debenture Issuer may commence a new Extension Period, subject to the foregoing
requirements. No interest or Additional Interest shall be due and payable during an Extension Period, except at the end thereof, but each installment of interest that would otherwise have been due and
payable during such Extension Period shall bear Additional Interest. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates, to
Holders of the Securities as they appear on the books and records of the Trust on the record date immediately preceding such date. Distributions on the Securities must be paid on the dates payable
(after giving effect to any Extension Period) to the extent that the Trust has funds available for the payment of such distributions in the Property Account of the Trust. The Trust's funds available
for Distribution to the Holders of the Securities will be limited to payments received from the Debenture Issuer. The payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee. 

        The
Capital Securities shall be redeemable as provided in the Declaration. 

A-1-6

 
 
 

ASSIGNMENT    
  

        FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital Security Certificate to: 

	
	 	 
	

(Insert assignee's social security or tax identification number)	

	
 	

 
	

	
 	

 
	

	
 	

 
	

(Insert address and zip code of assignee) and irrevocably appoints	
 	

 
	

	
 	

 
	

 	

 	
 	

 

	

 agent to transfer this Capital Security Certificate on the books of the Trust. The agent may substitute another to act for him or her.
	

Date:	

	

 
	

Signature:	

	

 
	

(Sign exactly as your name appears on the other side of this Capital Security Certificate)
	

Signature Guarantee:1

	1
	Signature
must be guaranteed by an "eligible guarantor institution" that is a bank, stockbroker, savings and loan association or credit union meeting the requirements of
the Security registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Security registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

A-1-7

  

 
 

EXHIBIT A-2
  
    FORM OF COMMON SECURITY CERTIFICATE    
  

        THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EXEMPTION FROM REGISTRATION. 

        THIS
CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH SECTION 8.1 OF THE DECLARATION. 

	Certificate Number C-1	 	155 Common Securities
	

September 26, 2002
	

Certificate Evidencing Floating Rate Common Securities
	

of
	

Coast Bancorp Statutory Trust I

        Coast
Bancorp Statutory Trust I, a statutory trust created under the laws of the State of Connecticut (the "Trust"), hereby certifies that Coast Bancorp (the "Holder") is the registered
owner of common securities of the Trust representing undivided beneficial interests in the assets of the Trust (the "Common Securities"). The designation, rights, privileges, restrictions, preferences
and other terms and
provisions of the Common Securities represented hereby are issued pursuant to, and shall in all respects be subject to, the provisions of the Amended and Restated Declaration of Trust of the Trust
dated as of September 26, 2002, among Jack C. Wauchope, Thomas J. Sherman and Jack Robasciotti, as Administrators, State Street Bank and Trust Company of Connecticut, National Association, as
Institutional Trustee, Coast Bancorp as Sponsor, and the holders from time to time of undivided beneficial interest in the assets of the Trust including the designation of the terms of the Common
Securities as set forth in Annex I to such amended and restated declaration, as the same may be amended from time to time (the "Declaration"). Capitalized terms used herein but not defined shall have
the meaning given them in the Declaration. The Holder is entitled to the benefits of the Guarantee to the extent provided therein. The Sponsor will provide a copy of the Declaration, the Guarantee and
the Indenture to the Holder without charge upon written request to the Sponsor at its principal place of business. 

        As
set forth in the Declaration, where an Event of Default has occurred and is continuing, the rights of Holders of Common Securities to payment in respect of Distributions and payments
upon Liquidation, redemption or otherwise are subordinated to the rights of payment of Holders of the Capital Securities. 

        Upon
receipt of this Certificate, the Holder is bound by the Declaration and is entitled to the benefits thereunder. 

        By
acceptance of this Certificate, the Holder agrees to treat, for United States federal income tax purposes, the Debentures as indebtedness and the Common Securities as evidence of
undivided beneficial ownership in the Debentures. 

        This
Common Security is governed by, and construed in accordance with, the laws of the State of Connecticut, without regard to principles of conflict of laws. 

A-2-1

 

        IN
WITNESS WHEREOF, the Trust has duly executed this certificate. 

	 	 	COAST BANCORP STATUTORY TRUST I
	

 	
 	

 	

 	

 
	 	 	By:	 	 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	Administrator
	 	 	 	 	 

A-2-2

 
[FORM OF REVERSE OF SECURITY]  

        Distributions payable on each Common Security will be identical in amount to the Distributions payable on each Capital Security, which is at an annual rate equal
to 5.220% beginning on (and including) the date of original issuance and ending on (but excluding) December 26, 2002 and at an annual rate for each successive period beginning on (and
including) December 26, 2002, and each succeeding Distribution Payment Date, and ending on (but excluding) the next succeeding Distribution Payment Date (each a "Distribution Period"), equal to
3-Month LIBOR, determined as described below, plus 3.400% (the "Coupon Rate"); provided, however, that prior to September 26, 2007,
the Coupon Rate shall not exceed 11.90%, applied to the stated liquidation amount of $1,000.00 per Common Security, such rate being the rate of interest payable on the Debentures to be held by the
Institutional Trustee. Distributions in arrears for more than one quarterly period will bear interest thereon compounded at the Distribution Rate (to the extent permitted by applicable law). The term
"Distributions" as used herein includes payments of Interest and any principal on the Debentures held by the Institutional Trustee unless otherwise stated. A Distribution is payable only to the extent
that payments are made in respect of the Debentures held by the Institutional Trustee and to the extent the Institutional Trustee has funds available therefor. As used herein, "Determination Date"
means the date that is two London Banking Days (i.e., a business day in which dealings in deposits in U.S. dollars are transacted in the London interbank market) preceding the commencement of the
relevant Distribution Period. In the event that any date on which a Distribution is payable on this Common Security is not a Business Day, then a payment of the Distribution payable on such date will
be made on the next succeeding day which is a Business Day (and without any Distribution or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. The amount
of interest payable for any Distribution Period will be calculated by applying the Coupon Rate to the principal amount outstanding at the commencement of the Distribution Period and multiplying each
such amount by the actual number of days in the Distribution Period concerned divided by 360. 

        "3-Month
LIBOR" as used herein, means the London interbank offered interest rate for three-month U.S. dollar deposits determined by the Debenture Trustee in the following
order of priority: (i) the rate
(expressed as a percentage per annum) for U.S. dollar deposits having a three-month maturity that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination Date
("Telerate Page 3750" means the display designated as "Page 3750" on the Dow Jones Telerate Service or such other page as may replace Page 3750 on that service or such other service or services as may
be nominated by the British Bankers' Association as the information vendor for the purpose of displaying London interbank offered rates for U.S. dollar deposits); (ii) if such rate cannot be
identified on the related Determination Date, the Debenture Trustee will request the principal London offices of four leading banks in the London interbank market to provide such banks' offered
quotations (expressed as percentages per annum) to prime banks in the London interbank market for U.S. dollar deposits having a three-month maturity as of 11:00 a.m. (London time) on such
Determination Date. If at least two quotations are provided, 3-Month LIBOR will be the arithmetic mean of such quotations; (iii) if fewer than two such quotations are provided as
requested in clause (ii) above, the Debenture Trustee will request four major New York City banks to provide such banks' offered quotations (expressed as percentages per annum) to leading
European banks for loans in U.S. dollars as of 11:00 a.m. (London time) on such Determination Date. If at least two such quotations are provided, 3-Month LIBOR will be the
arithmetic mean of such quotations; and (iv) if fewer than two such quotations are provided as requested in clause (iii) above, 3-Month LIBOR will be a 3-Month
LIBOR determined with respect to the Distribution Period immediately preceding such current Distribution Period. If the rate for U.S. dollar deposits having a three-month maturity that initially
appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the related Determination Date is superseded on the Telerate Page 3750 by a corrected rate by 12:00 noon (London time) on such 

A-2-3

 

Determination Date, then the corrected rate as so substituted on the applicable page will be the applicable 3-Month LIBOR for such Determination Date. 

        The
Coupon Rate for any Distribution Period will at no time be higher than the maximum rate then permitted by New York law as the same may be modified by United States law. 

        All
percentages resulting from any calculations on the Common Securities will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five
one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655), and all dollar amounts used in or resulting from such
calculation will be rounded to the nearest cent (with one-half cent being rounded upward)). 

        Except
as otherwise described below, Distributions on the Common Securities will be cumulative, will accrue from the date of original issuance and will be payable quarterly in arrears on
March 26, June 26, September 26 and December 26 of each year, commencing on December 26, 2002. The Debenture Issuer has the right under the Indenture to defer
payments of interest on the Debentures by extending the interest payment period for up to 20 consecutive quarterly periods (each an "Extension Period") on the Debentures, subject to the conditions
described below, although such interest would continue to accrue on the Debentures at an annual rate equal to the Distribution Rate compounded quarterly to the extent permitted by law during any
Extension Period. No Extension Period may end on a date other than an Interest Payment Date. At the end of any such Extension Period the Sponsor shall pay all interest then accrued and unpaid on the
Debentures (together with Additional Interest thereon); provided, however, that no Extension Period may extend beyond the Maturity Date. Prior to the termination of any Extension Period, the Sponsor
may further extend such period, provided that such
period together with all such previous and further consecutive extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date. Upon the termination of any
Extension Period and upon the payment of all accrued and unpaid interest and Additional Interest, the Sponsor may commence a new Extension Period, subject to the foregoing requirements. No interest or
Additional Interest shall be due and payable during an Extension Period, except at the end thereof, but each installment of interest that would otherwise have been due and payable during such
Extension Period shall bear Additional Interest. If Distributions are deferred, the Distributions due shall be paid on the date that the related Extension Period terminates, to Holders of the
Securities as they appear on the books and records of the Trust on the record date immediately preceding such date. Distributions on the Securities must be paid on the dates payable (after giving
effect to any Extension Period) to the extent that the Trust has funds available for the payment of such distributions in the Property Account of the Trust. The Trust's funds available for
Distribution to the Holders of the Securities will be limited to payments received from the Debenture Issuer. The payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee. 

        The
Common Securities shall be redeemable as provided in the Declaration. 

A-2-4

 
 
 

ASSIGNMENT    
  

        FOR VALUE RECEIVED, the undersigned assigns and transfers this Common Security Certificate to: 

	
	 	 
	

(Insert assignee's social security or tax identification number)	

	
 	

 
	

	
 	

 
	

	
 	

 
	

(Insert address and zip code of assignee) and irrevocably appoints	
 	

 
	

	
 	

 
	

 	

 	
 	

 

	

 agent to transfer this Capital Security Certificate on the books of the Trust. The agent may substitute another to act for him or her.
	

Date:	

	

 
	

Signature:	

	

 
	

(Sign exactly as your name appears on the other side of this Common Security Certificate)
	

Signature:	

	

 
	

(Sign exactly as your name appears on the other side of this common Security Certificate)
	

Signature Guarantee2	

 

	2
	Signature
must be guaranteed by an "eligible guarantor institution" that is a bank, stockbroker, savings and loan association or credit union, meeting the requirements of
the Security registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program ("STAMP") or such other "signature guarantee program" as may be
determined by the Security registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

A-2-5

  

 
 

EXHIBIT B
  
    SPECIMEN OF INITIAL DEBENTURE    
  

(See
Tab No. 16) 

B-1

  

 
 

EXHIBIT C
  
    PLACEMENT AGREEMENT    
  

(See
Tab No. 1) 

C-1

QuickLinks

Exhibit 10.5

TABLE OF CONTENTS

AMENDED AND RESTATED DECLARATION OF TRUST OF COAST BANCORP STATUTORY TRUST I

ARTICLE I INTERPRETATION AND DEFINITIONS

ARTICLE II ORGANIZATION

ARTICLE III SPONSOR

ARTICLE IV INSTITUTIONAL TRUSTEE AND ADMINISTRATORS

ARTICLE V DISTRIBUTIONS

ARTICLE VI ISSUANCE OF SECURITIES

ARTICLE VII DISSOLUTION AND TERMINATION OF TRUST

ARTICLE VIII TRANSFER OF INTERESTS

ARTICLE IX LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, INSTITUTIONAL TRUSTEE OR OTHERS

ARTICLE X ACCOUNTING

ARTICLE XI AMENDMENTS AND MEETINGS

ARTICLE XII REPRESENTATIONS OF INSTITUTIONAL TRUSTEE

ARTICLE XIII MISCELLANEOUS

ANNEX I TERMS OF SECURITIES

EXHIBIT A-1 FORM OF CAPITAL SECURITY CERTIFICATE

CERTIFICATE OF AUTHENTICATION

ASSIGNMENT

EXHIBIT A-2 FORM OF COMMON SECURITY CERTIFICATE

ASSIGNMENT

EXHIBIT B SPECIMEN OF INITIAL DEBENTURE

EXHIBIT C PLACEMENT AGREEMENTQuickLinks
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Exhibit 10(i)    
  

VALMONT 1988 STOCK PLAN  

ARTICLE I  

NAME AND PURPOSE  

        1.1    NAME.    The name of the Plan shall be the Valmont 1988 Stock Plan ("Plan"). 

        1.2    PURPOSE.    The purpose of the Plan is to enable employees to share in the growth and prosperity of the Company
by encouraging stock ownership by employees to assist the Company to hire and retain key management personnel. Incentive Stock Options, Nonqualified Stock Options, restricted stock, bargain stock,
stock appreciation rights, And other types of stock awards may be granted under this Plan. 

ARTICLE II  

DEFINITIONS  

        The terms used herein shall have the following meanings, unless a different meaning is clearly required by the context: 

	2.1
	"Board"
shall mean the Board of Directors of the Company.

	2.2
	"Code"
shall mean the Internal Revenue Code of 1987, as amended.

	2.3
	"Committee"
shall mean the Compensation Committee of the Board.

	2.4
	"Company"
shall mean Valmont Industries, Inc., a Delaware corporation.

	2.5
	"Company
Stock" shall mean shares of common stock issued by the Company.

	2.6
	"Employee"
shall mean any person employed by the Employer or a Subsidiary during a Plan Year.

	2.7
	"Employer"
shall mean the Company.

	2.8
	"Incentive
Stock Option" means any option granted to a participant under this Plan, which the Board intends at the time it is granted, to be an incentive stock option within the
meaning of Section 422A of the Code.

	2.9
	"Nonqualified
Stock Option" means any option granted to a Participant under this Plan, which is not an Incentive Stock Option.

	2.10
	"Optionee"
is any Employee who is granted options under the Plan.

	2.11
	"Participant"
shall mean any Employee who meets the requirements for participation in the Plan as described in Article III.

	2.12
	"Subsidiary"
shall mean a corporation which is a "subsidiary corporation" as defined in Section 425 of the Code. 

ARTICLE III  

ELIGIBILITY AND PARTICIPATION  

        3.1    ELIGIBILITY.    Every Employee shall be eligible to become a Participant in the Plan. 

        3.2    PARTICIPATION.    The Employee who shall participate in the Plan and thereby be eligible to receive, the number
of, and the combination of stock options, restricted stock, and stock appreciation rights and other stock awards, shall be such key executive Employees as the Compensation Committee of the Board
("Committee") shall select from Time to time. 

ARTICLE IV  

TYPES OF BENEFITS  

        Benefits under the Plan ("Benefits") may be granted in any one of any combination of (a) Incentive Stock Options; (b) Nonqualified Stock Options;
(c) stock appreciation rights; (d) restricted stock awards; (e) bargain 

1

 

purchase of common stock; (f) bonuses of common stock; or (g) any other form of stock benefit, as described in this Plan. 

        Without
limiting the Committee's authority, the Committee may: (a) make the grant of Benefits conditional upon an election by a Participant to defer payment of a portion of his
salary; (b) give a Participant a choice between two Benefits or combinations of Benefits; (c) award Benefits in the alternative so that acceptance of or exercise of one Benefit cancels
the right of a Participant to another; and (d) award Benefits in any combination or combinations and subject to any condition or conditions consistent with the terms of the Plan that the
Committee in its sole discretion may determine. 

ARTICLE V  

SHARES SUBJECT TO PLAN  

        The total number of shares which may be issued under this Plan shall not exceed in the aggregate 300,000 shares. This number shall be appropriately
adjusted if the number of issued shares shall be increased or reduced by change in par value, combination, split-up, reclassification, distribution of a dividend payable in stock, or the like. In the
event that any outstanding option, restricted stock or other Benefit issued pursuant to the Plan shall expire or terminate, the shares allocable to the unexercised portion of such Benefit may again be
subjected to an award under the Plan. 

ARTICLE VI  

OPTIONS  

        The Board from time to time may grant Incentive Stock Options and Nonqualified Stock Options. Each option agreement between the Company and the Participant shall
be in such form and shall contain such provisions as the Committee from time to time shall deem appropriate. Option agreements need not be identical. The option agreements shall specify whether or not
an option is an Incentive Stock Option. 

        The
terms of Incentive Stock Options granted shall include the following: 

	(a)
	The
option price shall be fixed by the Committee in good faith, but in no event be less than 100 percent of the fair market value of the shares subject to the option on the date the
option is granted. The option price shall be paid by the Participant in cash or, at the absolute discretion of the Committee, by the transfer of Company stock at the time the option is exercised.

	(b)
	Options
shall not be transferrable otherwise than by will or the laws of descent and distribution, and during an Optionee's lifetime, an option shall be exercisable only by the
Optionee.

	(c)
	Subject
to the limitations below on a 10% owner, the Committee shall fix the term or duration of all options issued under this Plan provided that such term shall not exceed ten years
after the date on which the option was granted and shall not extend beyond the Optionee's employment with the Company. The Committee shall also set the date or dates on, or after which, each option
may be exercised.

	(d)
	The
aggregate fair market value, determined as of the time the option is granted, of the stock which may become exercisable for the first time by any Employee during any calendar year
shall not exceed $100,000.

	(e)
	Each
option agreement (and amendments thereof) shall contain such terms and provisions, consistent with the requirements of this Plan, as the Committee in its discretion shall
determine, including without limitation such terms and provisions as shall be requisite to cause certain stock options to qualify as Incentive Stock options. 

        Notwithstanding
any other provisions of the Plan, no Incentive Stock Option shall be granted to an Employee who, at the time the option is granted, owns stock representing more than ten
percent of the total combined voting power of all classes of stock of the Employer. This stock ownership limitation will not apply if the option price is at least 110 percent of the fair market value
(at the time the option is granted) of the stock subject to the option, and the option by its terms is not exercisable more than five years from the date it is granted. 

2

 

ARTICLE VII  

RESTRICTED SHARES  

        The Board from time to time may award restricted shares ("Restricted Shares") to any Participant in the Plan. Each Participant who is awarded Restricted Shares
shall enter into an agreement with the Company in a form specified by the Committee agreeing to the terms and conditions of the award and such other matters consistent with the Plan as the Committee
in its sole discretion shall determine. 

        Restricted
Shares awarded to Participants may not be sold, transferred, pledged or otherwise encumbered during a Restricted Period commencing on the date of the award and ending at such
later date as the Committee may designate at the time of the award. The Participant shall have the entire beneficial ownership and all rights and privileges of a shareholder with respect to Restricted
Shares awarded to him, including the right to receive dividends and the right to vote such Restricted Shares. All of the Restricted Shares shall be forfeited and all rights of the Participants to such
Restricted Shares shall terminate without further obligation on the part of the Company upon termination of employment of the Participant with the Company or a Subsidiary before the end of the
restricted period applicable to such restricted shares, provided that the Committee may provide that Restricted Shares are not so forfeited upon termination of employment on account of retirement,
death or disability. 

        The
Committee may provide any other terms or conditions with regard to Restricted Shares that it deems appropriate. Restricted Shares and agreements related thereto need not be
identical. 

ARTICLE VIII  

STOCK APPRECIATION RIGHTS  

        The Board from time to time may grant stock appreciation rights ("Stock Appreciation Rights") to any Participant in the Plan. A Stock Appreciation Right shall be
evidenced by a stock appreciation right agreement between the Company and the Participant, which shall contain such terms and conditions consistent with the Plan as the Committee from time to time
shall deem appropriate. 

        A
Stock Appreciation Right may be satisfied by the Company in cash or in shares of common stock of the Company, as determined by the Committee. The agreement may limit the maximum amount
of appreciation taken into account under a Stock Appreciation Right. 

        A
Stock Appreciation Right may be granted in conjunction with an Incentive Stock Option, a Nonqualified Stock Option, Restricted Shares or any other award hereunder. At the discretion of
the Committee, a Stock Appreciation Right may be exercisable only to the extent that a related award is exercisable and only upon surrender of a related award. In the event of the exercise of a Stock
Appreciation Right the exercise of which is conditioned upon surrender of a related award, the number of shares that may be issued under this Plan shall be reduced by the number of shares covered by
the award or portion thereof surrendered. 

        The
Committee may provide any other terms or conditions with regard to Stock Appreciation Rights that it deems appropriate. Stock Appreciation Rights and agreements related thereto need
not be identical. 

ARTICLE IX  

OTHER AWARDS  

        The Board may grant any other stock or stock-related awards to a Participant under this Plan that the Board deems appropriate, including, but not limited to, the
bargain purchase of Company stock and stock bonuses. Any such Benefits and any related agreements shall contain such terms and conditions as the Committee deems appropriate. Such awards and agreements
need not be identical. 

ARTICLE X  

ADMINISTRATION  

        The Plan shall be administered by the Committee. A majority vote of the Committee at which a quorum is present, or acts reduced to or approved in writing by a
majority of the members of the Committee, shall be the valid sets acts of the Committee for the purposes of this Plan. 

        The
Committee shall have plenary authority in its discretion but subject to the express provisions of the Plan, to determine the terms of all Benefits granted under the Plan including,
without limitation, the purchase price, if 

3

 

any, the Employees to whom, and the time or times at which Benefits shall be granted, when an option can be exercised, or Restricted Shares, Stock Appreciation Rights and other Benefits become
forfeitable, and whether in whole or in installments, and the number of shares covered by a Benefit; and to interpret the Plan and to make all other determinations deemed advisable for the
administration of the Plan. All determinations of the Committee shall be made by not less than a majority of its members. The Committee may designate Employees of the Company to assist the Committee
in the administration of the Plan and may grant authority to such persons to execute option agreements or other documents on behalf of the Committee. Notwithstanding anything in this Plan to the
contrary, the Board shall have sole authority to make all decisions relating to participation in the Plan by any director or officer of the Company. 

        Payment
in full for the number of shares purchased under any Benefit, including an option, shall be made to the Company at the time of each exercise, except in the case of the election
of an alternative settlement method as provided hereafter in this paragraph. 

	(i)
	The
Committee, in its discretion, may provide that any Benefit by its terms may permit the participant to elect, subject to Committee approval, any of
the alternative settlement methods set forth in subparagraph (iii) below.

	(ii)
	The
Committee, in its discretion, may at the request of a Participant holding a Benefit under the Plan which does not by its terms include the right to
elect any of such alternative settlement methods, permit the election of any of such alternative methods by the Participant.

	(iii)
	The
alternative settlement methods are: (a) cash equal to the excess of the value of one share over the option or purchase price times the
number of shares as to which the award is exercised; (b) the number of full shares having an aggregate value not greater than the cash amount calculated under alternative (a); (c) any
combination of cash and stock having an aggregate value not greater than the cash amount calculated under alternative(a). For purposes of determining an alternative settlement, the value per share
shall be determined under the same method as used to determine the option price in the case of stock options. 

Exercise
of an option or other Benefit in any manner, including an exercise involving an election of an alternative settlement method, shall result in a decrease in the number of shares which
thereafter may be available, both for purposes of the Plan and for sale to any one participant, by the number of shares as to which the option or benefit is exercised. Election of an alternative
settlement method involving the receipt of cash shall be subject to prior approval by The Committee at the time of such election. 

        Payment
for such shares shall be made in cash, or with the consent of the Committee, in shares of the Company's common stock. 

        The
interpretation and construction by the Committee of any provisions of the Plan or of any Benefit granted under it shall be final. No member of the Committee shall be liable for any
action or determination made in good faith with respect to the Plan or any Benefit granted under it. 

ARTICLE XI  

ADJUSTMENT UPON CHANGES OF STOCK  

        If any change is made on the shares of common stock of the Company be reason of any merger, consolidation, reorganization, recapitalization, stock dividend, split
up, combination of shares, exchange of shares, change in corporate structure, or otherwise, appropriate adjustments shall be made by the Committee to the kind and maximum number of shares subject to
the Plan and the kind and number of shares and price per share of stock subject to each outstanding Benefit. No fractional shares of stock shall be issued under the Plan on account of any such
adjustment, and rights to shares always shall be limited after such an adjustment to the lower full share. 

ARTICLE XII  

MISCELLANEOUS  

        12.1    CONTINUATION OF EMPLOYMENT.    Neither this Plan nor any Benefit granted hereunder shall confer upon any
Employee any right to continue in the employment of the Company or limit in any respect the right of the Company to terminate his employment at any time. 

4

 

        12.2    ADMINISTRATION.    The Committee may make such rules and regulations and establish such procedures as
it deems appropriate for the administration of this Plan. In the event of a disagreement as to the interpretation of the Plan or any amendment hereto or any rules, regulation or procedure thereunder
or as to any right or obligation arising from or related to this Plan, the decision of the Committee shall be final and binding. Notwithstanding anything in the Plan to the contrary, the Board shall
have sole authority to make all decisions relating to Participation in the Plan by any director or officer of the Company. 

        12.3    WITHHOLDING.    The Company shall have the right to withhold with respect to any payments made to Participants
under the Plan any taxes required by law to be withheld because of such payments. Each Participant shall take whatever action that the Committee deems appropriate to comply with the law regarding
withholding of Federal or State taxes. 

        12.4    EFFECTIVE DATE.    This Plan is effective on February 26, 1988 ("Effective Date"). Benefits hereunder
may be granted at any time subject to the limitations contained within the Plan. No Company stock may be issued unless this Plan is approved by a vote of the holders of a majority of the outstanding
shares of the Company's common stock at a meeting of the shareholders of the Company held within twelve months following the Effective Date. 

ARTICLE XIII  

AMENDMENT AND TERMINATION  

        13.1    AMENDMENT.    The Board may amend the Plan from time to time as it deems desirable and shall make any
amendments which may be required so that options intended to be Incentive Stock Options shall at all times continue to be Incentive Stock Options for the purposes of the Code; provided, however, the
Plan may not be amended to change the number of shares subject to the Plan or decrease the price at which options may be granted. 

        13.2    TERMINATION OF PLAN.    The Board may in its discretion terminate the Plan at any time, but no such
termination shall deprive Participants of their rights under outstanding Benefits. Notwithstanding the preceding sentence, no Incentive Stock options may be granted pursuant to the Plan later than ten
years after the date the Plan is adopted or the date the Plan is approved by the shareholders of the Company, whichever is earlier. 

5

 
AMENDMENT NO. 1 TO VALMONT 1988 STOCK PLAN  

        Section 12.3 of the Valmont 1988 Stock Plan is hereby amended to read as follows: 

        12.3    WITHHOLDING.    The Company shall have the right to withhold with respect to any payments made to participants
under the Plan any taxes required by law to be withheld because of such payments. With respect to any such withholding: 

	(a)
	Each
Participant shall take whatever action that the Committee deems appropriate to comply with the law regarding withholding of taxes.

	(b)
	When
a Participant is obligated to pay to the Company an amount required to be withheld under applicable income tax laws in connection with a Benefit, the board may, in its discretion
and subject to such rules as it may adopt, permit the Participant to satisfy this obligation, in whole or in part, either (i) by having the company withhold from the shares to be issued
upon the exercise of an option or a stock appreciation right or upon the receipt of a Benefit, shares having a fair market value that would satisfy the withholding amount due or (ii) by
delivering to the Company already-owned shares to satisfy the withholding amount. 

6

 
AMENDMENT TO THE VALMONT 1988 STOCK PLAN  

        The Valmont 1988 Stock Plan (the "Plan") is hereby amended as follows: 

	A.
	Section 2.11
is amended to read as follows:

	2.11
	"Participant"
shall mean any Employee or director who meets the requirements for participant in the Plan as described in Article III. 

	B.
	A
new Section 2.13 is added as follows:

	2.13
	"Director"
shall mean a director of the Company. 

	C.
	A
new Section 2.14 is added as follows:

	2.14
	"Change
of Control" shall mean:

	(i)
	The
acquisition (other than from Valmont) by any person, entity or "group", within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934 (the "Exchange Act"), (excluding any acquisition or holding by (i) Valmont or its subsidiaries, (ii) any employee benefit plan of Valmont or its subsidiaries which
acquires beneficial ownership of voting securities of Valmont and (iii) Robert B. Daugherty, his successors and assigns and any tax-exempt entity established by him of beneficial
ownership (within the meaning of Rule 13d-3 promulagated under the Exchange Act) of 50% or more or the combined voting power of Valmont's then outstanding voting securities entitled to vote
generally in the election of directors; or

	(ii)
	Individuals
who, as of the date hereof, constitute the Board (as of the date hereof the "Incumbent Board") cease for any reason to constitute at least
a majority of the board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for the election by Valmont's shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall be, for purposes of this Agreement, considered as through such person were a member of the Incumbent board; or

	(iii)
	Approval
by the stockholders of Valmont of a reorganization, merger or consolidation, in each case, with respect to which persons who were the
stockholders of Valmont immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in
the election of directors of the reorganized, merged or consolidated company's than outstanding voting securities, or a liquidation or dissolution of Valmont or of the sale of all or substantially all
of the assets of Valmont. 

	D.
	A
new Section 3.3 is added as follows: 

        3.3    DIRECTOR PARTICIPATION.    Each director who is not an Employee or the Company shall receive a non-
discretionary award of 1,000 Shares each year immediately following the annual stockholders' meeting. The award shall be granted to those directors elected at such meeting. Each director shall
be issued a common stock certificate for such number of shares. Termination of the director's services for any reason other than (i) Death, (ii) retirement from the board at mandatory
retirement age, or (iii) resignation or failure to stand for re-election, in either case with the prior approval of the Board, will result in forfeiture of the Shares. If the Shares are
forfeited, the director shall return the number of forfeited Shares, or equivalent value, to the Company. The number of Shares awarded to a director annually shall be appropriately adjusted in the
event of any stock changes as described in Article XI. Directors are not eligible to receive any other Benefit under the Plan. 

	E.
	The
last sentence of Article V is amended to read as follows: 

In
the event that any outstanding option, Restricted Stock or other Benefit issued pursuant to the Plan shall expire or terminate, the shares allocable to the unexercised or forfeited portion of such
Benefit may again be subject to an award under the Plan. In addition, any shares which are used for the full or partial payment of the purchase price (or applicable withholding taxes) for shares with
respect to which an option is exercised may again be used for an award under the Plan. 

	F.
	The
first paragraph of Article IV is amended to read as follows: 

Benefits
under the Plan ("Benefits") may be granted in any one or any Combination of (a) Incentive Stock Options; (b) Nonqualified Stock Options; (c) stock appreciation rights;
(d) restricted stock awards; (e) bargain purchase of common stock; (f) bonuses of common stock; (g) any other form of stock benefit; or (h) cash. 

7

 
	G.
	A
new paragraph is added at the end of to Article VI as follows: 

The
Committee may grant a replacement option (a "Replacement Option") to any Employee who exercises all or part of an option granted under this Plan using Qualifying Stock (as herein defined) as
payment for the purchase price. A Replacement Option shall grant to the Employee the right to purchase, at the fair market value as of the date of said exercise and grant, the number of shares of
stock equal to the sum of the number of whole shares (i) used by the Employee in payment of the purchase price for the option which was exercised and (ii) used by the Employee in
connection with applicable withholding taxes on such transaction. A Replacement Option may not be exercised for six months following the date of grant, and shall expire on the same date as the option
which it replaces. Qualifying Stock is stock which has been owned by the Employee for at least six months prior to the date of exercise and has not been used in a stock-for-stock swap transaction
within the preceding six months. 

	H.
	The
second paragraph of subsection (iii) of Article X is deleted.

	I.
	A
new Section 12.5 is added as follows: 

On
the date of a Change of Control, all outstanding options and stock appreciation rights shall become immediately exercisable and all restrictions with respect to Restricted Stock shall lapse.
Following such a Change of Control, the Committee shall grant the request of any Employee to pay for shares purchased under any Benefit by using an alternative settlement method described in the first
paragraph of subsection (iii) of Article X. 

	J.
	This
amendment to the Plan shall be effective upon approval by stockholders of the Company at the 1990 annual stockholders' meeting. 

8

 
THIRD AMENDMENT TO THE VALMONT 1988 STOCK PLAN  

        The Valmont 1988 Stock Plan (the "Plan") was approved by Valmont stockholders on April 25, 1988. Further amendments were approved by Valmont stockholders
on April 23, 1990. The Valmont 1988 Stock Plan, as previously amended, is hereby further amended by deleting in its entirety the last sentence of Article V (which was added by the
amendment approved by stockholders on April 23, 1990). The deleted sentence currently reads as follows: 

In
addition, any shares which are used for the full or partial payment of the purchase price (or applicable withholding taxes) for shares with respect to which an option is exercised may again be used
for an award under the Plan. 

FOURTH AMENDMENT TO THE VALMONT 1988 STOCK PLAN  

        The Valmont 1988 Stock Plan (as previously amended, the "Plan") is hereby further amended as follows: 

        A.    Section 3.3
is amended by adding the following sentences immediately preceding the last sentence of Section 3.3: 

In
addition, each director who is not an Employee of the Company shall receive a non-discretionary award of a Nonqualified Stock Option for 2,000 shares of Company Stock exercisable at the
closing price of the Company's common stock on the date of grant; such award shall be made on the third business day following the public release by the Company of its quarterly earnings for the
second quarter of fiscal 1995, and (ii) annually thereafter on the date of and following completion of the Company's annual stockholders' meeting (commencing with the 1996 annual Stockholders'
meeting). The number of nonqualified options awarded to a director shall be appropriately adjusted in the event of any stock changes as described in Article XI. 

        B.    This
Fourth Amendment to the Plan shall be effective upon its approval by the stockholders of the Company, and any grant of Nonqualified Stock Options pursuant to the
Fourth Amendment shall be expressly conditioned upon such stockholder approval. 

9

QuickLinks

Exhibit 10(i)

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