Document:

Exhibit 4.13

 

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

 

	
  Certificate Number

  	
   

  	
  Number of Common
  Securities

  
	
   

  	
   

  	
   

  
	
  C-001

  	
   

  	
  420

  

 

 

Certificate Evidencing Common Securities

 

of

 

Pacific Crest Capital Trust I

 

Floating Rate Common Securities

 

(liquidation amount $1,000 per Common
Security)

 

Pacific Crest
Capital Trust I, a statutory trust created under the laws of the State of
Delaware (the “Trust”), hereby certifies that Pacific Crest Capital, Inc.,
a Delaware corporation (the “Holder”) is the registered owner of four
hundred and twenty (420) common securities of the Trust representing undivided
common beneficial interests in the assets of the Trust and designated the Pacific Crest Capital Trust I
Floating Rate Common Securities (liquidation amount $1,000 per Common Security)
(the “Common
Securities”). Except in accordance with Section 5.11 of
the Trust Agreement (as defined below), the Common Securities are not
transferable and, to the fullest extent permitted by law, any attempted
transfer hereof other than in accordance therewith shall be void. The
designations, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities are set forth in, and this certificate and
the Common Securities represented hereby are issued and shall in all respects
be subject to the terms and provisions of, the Amended and Restated Trust
Agreement of the Trust, dated as of March 20, 2003 as the same may be amended
from time to time (the “Trust Agreement”), among Pacific Crest
Capital, Inc., as Depositor, The Bank of New York, as Property Trustee, The
Bank of New York (Delaware), as Delaware Trustee, the Administrative Trustees
named therein and the Holders, from time to time, of Trust Securities. The
Trust will furnish a copy of the Trust Agreement to the Holder without charge
upon written request to the Trust at its principal place of business or
registered office.

 

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

 

 

This Common
Securities Certificate shall be governed by and construed in accordance with
the laws of the State of Delaware.

 

Terms used but
not defined herein have the meanings set forth in the Trust Agreement.

 

2

 

In Witness
Whereof, one of the Administrative Trustees of the
Trust has executed on behalf of the Trust this certificate this
         day of March, 2003.

 

 

	
   

  	
  Pacific
  Crest Capital Trust I

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Robert J. Dennen

  
	
   

  	
   

  	
  Title: 
  Administrative Trustee

  

 

3Exhibit 4.14

 

Execution Copy

 

 

JUNIOR SUBORDINATED INDENTURE

 

between

 

 

PACIFIC CREST CAPITAL, INC.

 

 

and

 

THE BANK OF NEW YORK,

as Trustee

 

 

Dated as of March 20, 2003

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
  Definitions
  and Other Provisions of General Application

  
	
   

  	
   

  
	
  Section
  1.1.

  	
  Definitions

  
	
   

  	
   

  
	
  Section 1.2.

  	
  Compliance
  Certificate and Opinions

  
	
   

  	
   

  
	
  Section 1.3.

  	
  Forms of
  Documents Delivered to Trustee

  
	
   

  	
   

  
	
  Section
  1.4.

  	
  Acts
  of Holders

  
	
   

  	
   

  
	
  Section 1.5.

  	
  Notices, Etc. to
  Trustee and Company

  
	
   

  	
   

  
	
  Section 1.6.

  	
  Notice to Holders; Waiver

  
	
   

  	
   

  
	
  Section 1.7.

  	
  Effect of
  Headings and Table of Contents

  
	
   

  	
   

  
	
  Section 1.8.

  	
  Successors and Assigns

  
	
   

  	
   

  
	
  Section 1.9.

  	
  Separability Clause

  
	
   

  	
   

  
	
  Section 1.10.

  	
  Benefits of Indenture

  
	
   

  	
   

  
	
  Section
  1.11.

  	
  Governing
  Law

  
	
   

  	
   

  
	
  Section 1.12.

  	
  Submission to Jurisdiction

  
	
   

  	
   

  
	
  Section
  1.13.

  	
  Non-Business
  Days

  
	
   

  	
   

  
	
  ARTICLE II

  
	
  Security Forms

  
	
   

  
	
  Section
  2.1.

  	
  Form
  of Security

  
	
   

  	
   

  
	
  Section
  2.2.

  	
  Restricted
  Legend

  
	
   

  	
   

  
	
  Section
  2.3.

  	
  Form
  of Trustee’s Certificate of Authentication

  
	
   

  	
   

  
	
  Section 2.4.

  	
  Temporary Securities

  
	
   

  	
   

  
	
  Section 2.5.

  	
  Definitive Securities

  
	
   

  	
   

  
	
  ARTICLE III

  
	
  The Securities

  
	
   

  
	
  Section 3.1.

  	
  Payment of Principal
  and Interest

  
	
   

  	
   

  
	
  Section
  3.2.

  	
  Denominations

  
	
   

  	
   

  
	
  Section
  3.3.

  	
  Execution,
  Authentication, Delivery and Dating

  
	
   

  	
   

  
	
  Section
  3.4.

  	
  Global
  Securities

  
	
   

  	
   

  
	
  Section
  3.5.

  	
  Registration,
  Transfer and Exchange Generally

  
	
   

  	
   

  
	
  Section
  3.6.

  	
  Mutilated,
  Destroyed, Lost and Stolen Securities

  
	
   

  	
   

  
	
  Section 3.7.

  	
  Persons Deemed Owners

  

 

i

 

	
  Section
  3.8.

  	
  Cancellation

  
	
   

  	
   

  
	
  Section 3.9.

  	
  Deferrals of
  Interest Payment Dates

  
	
   

  	
   

  
	
  Section
  3.10.

  	
  Right
  of Set-Off

  
	
   

  	
   

  
	
  Section 3.11.

  	
  Agreed Tax Treatment

  
	
   

  	
   

  
	
  Section
  3.12.

  	
  CUSIP
  Numbers

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
  Satisfaction and Discharge

  
	
   

  
	
  Section 4.1.

  	
  Satisfaction
  and Discharge of Indenture

  
	
   

  	
   

  
	
  Section 4.2.

  	
  Application of Trust Money

  
	
   

  	
   

  
	
  ARTICLE V

  
	
  Remedies

  
	
   

  
	
  Section
  5.1.

  	
  Events
  of Default

  
	
   

  	
   

  
	
  Section
  5.2.

  	
  Acceleration
  of Maturity; Rescission and Annulment

  
	
   

  	
   

  
	
  Section
  5.3.

  	
  Collection
  of Indebtedness and Suits for Enforcement by Trustee.

  
	
   

  	
   

  
	
  Section 5.4.

  	
  Trustee May File
  Proofs of Claim

  
	
   

  	
   

  
	
  Section
  5.5.

  	
  Trustee
  May Enforce Claim Without Possession of Securities

  
	
   

  	
   

  
	
  Section 5.6.

  	
  Application of Money
  Collected

  
	
   

  	
   

  
	
  Section 5.7.

  	
  Limitation on Suits

  
	
   

  	
   

  
	
  Section
  5.8.

  	
  Unconditional
  Right of Holders to Receive Principal, Premium and Interest; Direct Action by
  Holders of Preferred Securities

  
	
   

  	
   

  
	
  Section 5.9.

  	
  Restoration of
  Rights and Remedies

  
	
   

  	
   

  
	
  Section 5.10.

  	
  Rights and Remedies
  Cumulative

  
	
   

  	
   

  
	
  Section 5.11.

  	
  Delay or Omission Not
  Waiver

  
	
   

  	
   

  
	
  Section
  5.12.

  	
  Control
  by Holders

  
	
   

  	
   

  
	
  Section 5.13.

  	
  Waiver of Past Defaults

  
	
   

  	
   

  
	
  Section 5.14.

  	
  Undertaking for Costs

  
	
   

  	
   

  
	
  Section 5.15.

  	
  Waiver of Usury,
  Stay or Extension Laws

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
  The Trustee

  
	
   

  
	
  Section 6.1.

  	
  Corporate Trustee Required

  
	
   

  	
   

  
	
  Section 6.2.

  	
  Certain Duties and
  Responsibilities

  

 

ii

 

	
  Section
  6.3.

  	
  Notice
  of Defaults

  
	
   

  	
   

  
	
  Section 6.4.

  	
  Certain Rights of Trustee

  
	
   

  	
   

  
	
  Section 6.5.

  	
  May Hold Securities

  
	
   

  	
   

  
	
  Section 6.6.

  	
  Compensation;
  Reimbursement; Indemnity

  
	
   

  	
   

  
	
  Section
  6.7.

  	
  Resignation
  and Removal; Appointment of Successor

  
	
   

  	
   

  
	
  Section 6.8.

  	
  Acceptance of
  Appointment by Successor

  
	
   

  	
   

  
	
  Section
  6.9.

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  
	
   

  	
   

  
	
  Section
  6.10.

  	
  Not
  Responsible for Recitals or Issuance of Securities

  
	
   

  	
   

  
	
  Section 6.11.

  	
  Appointment of
  Authenticating Agent

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
  Holder’s
  Lists and Reports by Trustee And Company

  
	
   

  	
   

  
	
  Section
  7.1.

  	
  Company
  to Furnish Trustee Names and Addresses of Holders

  
	
   

  	
   

  
	
  Section
  7.2.

  	
  Preservation
  of Information, Communications to Holders

  
	
   

  	
   

  
	
  Section
  7.3.

  	
  Reports
  by Company

  
	
   

  	
   

  
	
  ARTICLE VIII

  
	
  Consolidation,
  Merger, Conveyance, Transfer or Lease

  
	
   

  	
   

  
	
  Section
  8.1.

  	
  Company
  May Consolidate, Etc., Only on Certain Terms

  
	
   

  	
   

  
	
  Section 8.2.

  	
  Successor Company
  Substituted

  
	
   

  	
   

  
	
  ARTICLE IX

  
	
  Supplemental
  Indentures

  
	
   

  
	
  Section
  9.1.

  	
  Supplemental
  Indentures without Consent of Holders

  
	
   

  	
   

  
	
  Section
  9.2.

  	
  Supplemental
  Indentures with Consent of Holders

  
	
   

  	
   

  
	
  Section 9.3.

  	
  Execution of
  Supplemental Indentures

  
	
   

  	
   

  
	
  Section 9.4.

  	
  Effect of
  Supplemental Indentures

  
	
   

  	
   

  
	
  Section
  9.5.

  	
  Reference
  in Securities to Supplemental Indentures

  
	
   

  	
   

  
	
  ARTICLE X

  
	
  Covenants

  
	
   

  
	
  Section
  10.1.

  	
  Payment of
  Principal, Premium and Interest

  
	
   

  	
   

  
	
  Section
  10.2.

  	
  Money
  for Security Payments to be Held in Trust

  
	
   

  	
   

  
	
  Section 10.3.

  	
  Statement as to Compliance

  
	
   

  	
   

  
	
  Section
  10.4.

  	
  Calculation
  Agent

  

 

iii

 

	
  Section 10.5.

  	
  Additional Tax Sums

  
	
   

  	
   

  
	
  Section 10.6.

  	
  Additional Covenants

  
	
   

  	
   

  
	
  Section 10.7.

  	
  Waiver of Covenants

  
	
   

  	
   

  
	
  Section 10.8.

  	
  Treatment of Securities

  
	
   

  	
   

  
	
  ARTICLE XI

  
	
  Redemption
  of Securities

  
	
   

  	
   

  
	
  Section 11.1.

  	
  Optional Redemption

  
	
   

  	
   

  
	
  Section 11.2.

  	
  Special Event Redemption

  
	
   

  	
   

  
	
  Section 11.3.

  	
  Election to
  Redeem; Notice to Trustee

  
	
   

  	
   

  
	
  Section 11.4.

  	
  Selection of
  Securities to be Redeemed

  
	
   

  	
   

  
	
  Section 11.5.

  	
  Notice of Redemption

  
	
   

  	
   

  
	
  Section 11.6.

  	
  Deposit of Redemption
  Price

  
	
   

  	
   

  
	
  Section
  11.7.

  	
  Payment of
  Securities Called for Redemption

  
	
   

  	
   

  
	
  ARTICLE XII

  
	
  Subordination of Securities

  
	
   

  	
   

  
	
  Section 12.1.

  	
  Securities
  Subordinate to Senior Debt

  
	
   

  	
   

  
	
  Section
  12.2.

  	
  No
  Payment When Senior Debt in Default; Payment Over of Proceeds Upon
  Dissolution, Etc.

  
	
   

  	
   

  
	
  Section 12.3.

  	
  Payment Permitted If
  No Default

  
	
   

  	
   

  
	
  Section
  12.4.

  	
  Subrogation
  to Rights of Holders of Senior Debt

  
	
   

  	
   

  
	
  Section
  12.5.

  	
  Provisions
  Solely to Define Relative Rights

  
	
   

  	
   

  
	
  Section 12.6.

  	
  Trustee to
  Effectuate Subordination

  
	
   

  	
   

  
	
  Section 12.7.

  	
  No Waiver of
  Subordination Provisions

  
	
   

  	
   

  
	
  Section
  12.8.

  	
  Notice
  to Trustee

  
	
   

  	
   

  
	
  Section
  12.9.

  	
  Reliance
  on Judicial Order or Certificate of Liquidating Agent

  
	
   

  	
   

  
	
  Section
  12.10.

  	
  Trustee
  Not Fiduciary for Holders of Senior Debt

  
	
   

  	
   

  
	
  Section
  12.11.

  	
  Rights
  of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights

  
	
   

  	
   

  
	
  Section 12.12.

  	
  Article Applicable
  to Paying Agents

  

 

iv

 

TABLE OF CONTENTS

 

	
  SCHEDULES

  
	
   

  	
   

  	
   

  
	
  Schedule A

  	
  –

  	
  Determination of LIBOR

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Officer’s Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Financial Definitions

  

 

i

 

JUNIOR
SUBORDINATED INDENTURE, dated as of March 20, 2003, between PACIFIC CREST
CAPITAL, INC., a Delaware corporation (the “Company”), and THE BANK OF NEW YORK, a New
York banking corporation, as Trustee (in such capacity, the “Trustee”).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has duly authorized the execution
and delivery of this Indenture to provide for the issuance of its unsecured
junior subordinated deferrable interest notes (the “Securities”) issued to evidence
loans made to the Company of the proceeds from the issuance by Pacific Crest  Capital
Trust I, a Delaware statutory
trust (the “Trust”), of undivided
preferred beneficial interests in the assets of the Trust (the “Preferred Securities”) and undivided
common beneficial interests in the assets of the Trust (the “Common Securities”  and, collectively with the
Preferred Securities, the “Trust Securities”),
and to provide the terms and conditions upon which the Securities are to be
authenticated, issued and delivered; and

 

WHEREAS, all things necessary to make this Indenture a
valid agreement of the Company, in accordance with its terms, have been done.

 

Now, therefore, this Indenture Witnesseth:

 

For and in consideration of the premises and the
purchase of the Securities by the Holders thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the
Securities, as follows:

 

ARTICLE I

 

Definitions
and Other Provisions of General Application

 

SECTION
1.1.  Definitions.

 

For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

 

(a)  the terms defined in this Article I
have the meanings assigned to them in this Article I;

 

(b)  the words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”;

 

(c)  all accounting terms not otherwise defined
herein have the meanings assigned to them in accordance with GAAP;

 

(d)  unless the context otherwise requires, any
reference to an “Article” or a “Section” refers to an Article or a Section, as
the case may be, of this Indenture;

 

(e)  the words “hereby”, “herein”, “hereof” and
“hereunder” and other words of similar import refer to this Indenture as a
whole and not to any particular Article, Section or other subdivision;

 

1

 

(f)  a reference to the singular includes the
plural and vice versa; and

 

(g)  the masculine, feminine or neuter genders
used herein shall include the masculine, feminine and neuter genders.

 

“Act”  when used with respect
to any Holder, has the meaning specified in Section 1.4.

 

“Administrative Trustee”
means, with respect to the Trust, a Person identified as an “Administrative
Trustee” in the Trust Agreement, solely in its capacity as Administrative
Trustee of the Trust under the Trust Agreement and not in its individual
capacity, or its successor in interest in such capacity, or any successor
Administrative Trustee appointed as therein provided.

 

“Additional
Interest”  means
the interest, if any, that shall accrue on any amounts payable  on the Securities, the payment of which has
not been made on the applicable Interest Payment Date and which shall accrue at
the rate per annum specified or determined as specified in such Security.

 

“Additional
Tax Sums”  has
the meaning specified in Section 10.5.

 

“Additional
Taxes”  means
taxes, duties or other governmental charges imposed on the Trust as a result of
a Tax Event (which, for the sake of clarity, does not include amounts required
to be deducted or withheld by the Trust from payments made by the Trust to or
for the benefit of the Holder of, or any Person that acquires a beneficial
interest in, the Securities).

 

“Affiliate”  of any specified
Person means any other Person directly or indirectly controlling or controlled
by or under direct or indirect common control with such specified Person. For
the purposes of this definition, “control,” when used with respect to any
specified Person, means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Applicable
Depository Procedures”
means, with respect to any transfer or transaction involving a Global Security
or beneficial interest therein, the rules and procedures of the Depositary for
such Security, in each case to the extent applicable to such transaction and as
in effect from time to time.

 

“Authenticating
Agent”
means any Person authorized by the Trustee pursuant to Section 6.11 to
act on behalf of the Trustee to authenticate the Securities.

 

“Bankruptcy
Code”
means Title 11 of the United States Code or any successor statute thereto, in
each case as amended from time to time.

 

“Board
of Directors”  means
the board of directors of the Company or any duly authorized committee of that
board.

 

“Board
Resolution”  means
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification.

 

2

 

“Business
Day”
means any day other than (i) a Saturday or Sunday, (ii) a day on which banking
institutions in the City of New York are authorized or required by law or
executive order to remain closed or (iii) a day on which the Corporate Trust
Office of the Trustee is closed for business.

 

“Calculation Agent” has the
meaning specified in Section 10.4.

 

“Capital
Disqualification Event”
means the receipt by the Company of an Opinion of Counsel experienced in such
matters that, as a result of an amendment to or a change in law or regulation
(including any announced prospective change) or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than insubstantial risk that
within ninety (90) days of the date of such opinion, the aggregate principal
amount of the Securities will not be eligible to be treated by the Company as
“Tier 1 Capital” (or the then equivalent) for purposes of the capital adequacy
guidelines of the Federal Reserve Board or other “appropriate Federal banking
agency” as such term is defined in 12 U.S.C. 1813(q), which amendment, change
or prospective change becomes effective or would become effective, as the case
may be, on or after the date of issuance of the Securities; provided,
however,
that the inability of the Company to treat all or any portion of the principal
amount of the Securities as Tier 1 Capital shall not constitute the basis for a
Capital Disqualification Event if such inability results from the Company
having such Securities outstanding in an amount that for any reason is in
excess of the amount which may now or hereafter qualify for treatment as Tier 1
Capital under applicable capital adequacy guidelines.

 

“Common
Securities”  has
the meaning specified in the first recital of this Indenture.

 

“Common
Stock”  means
the common stock, par value $0.01 per share, of the Company.

 

“Company”  means the Person
named as the “Company” in the first
paragraph of this Indenture until a successor corporation shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such
successor corporation.

 

“Company
Request”  and
“Company Order”  mean, respectively,
the written request or order signed in the name of the Company by its Chairman
of the Board of Directors, its Vice Chairman of the Board of Directors, its
Chief Executive Officer, President or a Vice President, and by its Chief
Financial Officer, its Treasurer, an Assistant Treasurer, its Secretary or an
Assistant Secretary, and delivered to the Trustee.

 

“Corporate
Trust Office”  means
the principal office of the Trustee at which at any particular time its
corporate trust business shall be administered, which office at the date of
this Indenture is located at 101 Barclay Street, New York, New York 10286,
Attention: Corporate Trust Administration.

 

“Debt” means, with respect
to any Person, whether recourse is to all or a portion of the assets of such
Person, whether currently existing or hereafter incurred and whether or not
contingent and without duplication, (i) every obligation of such Person for
money borrowed; (ii) every obligation of such Person evidenced by bonds,
debentures, notes or other similar instruments, including obligations incurred
in connection with the acquisition of property, assets or businesses; (iii)
every reimbursement obligation of such Person with respect to letters of
credit, bankers’ acceptances or similar facilities issued for the account of
such Person; (iv) every

 

3

 

obligation of such Person
issued or assumed as the deferred purchase price of property or services (but
excluding trade accounts payable or other accrued liabilities arising in the
ordinary course of business); (v) every capital lease obligation of such
Person; (vi) all indebtedness of such Person, whether incurred on or prior to
the date of this Indenture or thereafter incurred, for claims in respect of
derivative products, including interest rate, foreign exchange rate and
commodity forward contracts, options and swaps and similar arrangements; (vii)
every obligation of the type referred to in clauses (i) through (vi) of another
Person and all dividends of another Person the payment of which, in either
case, such Person has guaranteed or is responsible or liable for, directly or
indirectly, as obligor or otherwise; and (viii) any renewals, extensions,
refundings, amendments or modifications of any obligation of the type referred
to in clauses (i) through (vii).

 

“Defaulted
Interest”
has the meaning specified in Section 3.1.

 

“Delaware
Trustee” means,
with respect to the Trust, the Person identified as the “Delaware Trustee” in
the Trust Agreement, solely in its capacity as Delaware Trustee of the Trust
under the Trust Agreement and not in its individual capacity, or its successor
in interest in such capacity, or any successor Delaware Trustee appointed as
therein provided.

 

“Depositary”  means an
organization registered as a clearing agency under the Exchange Act that is
designated as Depositary by the Company or any successor thereto.  DTC will be the initial Depositary.

 

“Depository
Participant”
means a broker, dealer, bank, other financial institution or other Person for
whom from time to time a Depositary effects book-entry transfers and pledges of
securities deposited with the Depositary.

 

“Distributions” means amounts
payable in respect of the Trust Securities as provided in the Trust Agreement
and referred to therein as “Distributions.”

 

“Dollar” or  “$”  means the currency of the
United States of America that, as at the time of payment, is legal tender for
the payment of public and private debts.

 

“DTC” means The
Depository Trust Company, a New York corporation.

 

“Event
of Default”  has
the meaning specified in Section 5.1.

 

“Exchange
Act”
means the Securities Exchange Act of 1934 or any statute successor thereto, in
each case as amended from time to time.

 

“Expiration
Date”
has the meaning specified in Section 1.4.

 

“Extension
Period”  has
the meaning specified in Section 3.9.

 

“Federal
Reserve Board”
means the Board of Governors of the Federal Reserve System, as from time to
time constituted, or if at any time after the execution of this Indenture such
Board is not existing and performing the duties now assigned to it, then the
body performing such duties on such date.

 

4

 

“GAAP” means United States
generally accepted accounting principles, consistently applied, from time to
time in effect.

 

“Global
Security”  means
a Security that evidences all or part of the Securities, the ownership and
transfers of which shall be made through book entries by a Depositary.

 

“Government
Obligation”  means
(a) any security that is (i) a direct obligation of the United States of
America of which the full faith and credit of the United States of America is
pledged or (ii) an obligation of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America or the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or (ii),
is not callable or redeemable at the option of the issuer thereof, and (b) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any Government Obligation that is
specified in clause (a) above and held by such bank for the account of the
holder of such depositary receipt, or with respect to any specific payment of
principal of or interest on any Government Obligation that is so specified and
held, provided,
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the Government Obligation or
the specific payment of principal or interest evidenced by such depositary
receipt.

 

“Guarantee
Agreement”
means the Guarantee Agreement executed by the Company and The Bank of New York,
as Guarantee Trustee, contemporaneously with the execution and delivery of this
Indenture, for the benefit of the holders of the Preferred Securities, as
modified, amended or supplemented from time to time.

 

“Holder”  means a Person in
whose name a Security is registered in the Securities Register.

 

“Indenture”  means this
instrument as originally executed or as it may from time to time be amended or
supplemented by one or more amendments or indentures supplemental hereto
entered into pursuant to the applicable provisions hereof.

 

“Interest
Payment Date”  means
March 30, June 30, September 30 and December 30 of each year, commencing on
June 30, 2003, during the term of this Indenture.

 

“Investment
Company Act”
means the Investment Company Act of 1940 or any successor statute thereto, in
each case as amended from time to time.

 

“Investment Company Event” means the receipt
by the Company 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
(including any announced prospective change) or a written 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 ninety (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 Securities.

 

5

 

“LIBOR” has the meaning
specified in Schedule A.

 

“LIBOR
Business Day”
has the meaning specified in Schedule A.

 

“LIBOR
Determination Date”
has the meaning specified in Schedule A.

 

“Maturity,”  when used with
respect to any Security, means the date on which the principal of such Security
or any installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption or otherwise.

 

“Notice
of Default”  means
a written notice of the kind specified in Section 5.1(c).

 

“Office of Thrift Supervision”
means the Office of Thrift Supervision, as from time to time constituted or, if
at any time after the execution of this Indenture such Office is not existing
and performing the duties now assigned to it, then the body performing such
duties at such time.

 

“Officers’
Certificate”  means
a certificate signed by the Chairman of the Board, a Vice Chairman of the
Board, the Chief Executive Officer, the President or a Vice President, and by
the Chief Financial Officer, the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Company and delivered to the
Trustee.

 

“Operative
Documents”  means
the Trust Agreement, the Indenture, the Purchase Agreement, the Guarantee
Agreement and the Securities.

 

“Opinion
of Counsel”  means
a written opinion of counsel, who may be counsel for or an employee of the
Company or any Affiliate of the Company.

 

“Original
Issue Date” means
the date of original issuance of each Security.

 

“Outstanding”  means, when used in
reference to any Securities, as of the date of determination, all Securities
theretofore authenticated and delivered under this Indenture, except:

 

(i)  Securities
theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

 

(ii) 
Securities for whose payment or redemption money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such
Securities; provided,  that, if such
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee
has been made; and

 

(iii) 
Securities that have been paid or in substitution for or in lieu of
which other Securities have been authenticated and delivered pursuant to the
provisions of this Indenture, unless proof satisfactory to the Trustee is
presented that any such Securities are held by Holders in whose hands such
Securities are valid, binding and legal obligations of the Company;

 

6

 

provided,  that, in
determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, Securities owned by the Company
or any other obligor upon the Securities or any Affiliate of the Company or
such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities that a Responsible Officer of the Trustee actually
knows to be so owned shall be so disregarded. Securities so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor. Notwithstanding anything herein to the contrary, Securities initially
issued to the Trust that are owned by the Trust shall be deemed to be
Outstanding notwithstanding the ownership by the Company or an Affiliate of any
beneficial interest in the Trust.

 

“Paying
Agent”  means
the Trustee or any Person authorized by the Company to pay the principal of or
any premium or interest on, or other amounts in respect of, any Securities on
behalf of the Company.

 

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

 

“Place
of Payment”  means,
with respect to the Securities, the Corporate Trust Office of the Trustee.

 

“Preferred
Securities”  has
the meaning specified in the first recital of this Indenture.

 

“Predecessor
Security”  of
any particular Security means every previous Security evidencing all or a
portion of the same debt as that evidenced by such particular Security. For the
purposes of this definition, any security authenticated and delivered under Section
3.6 in lieu of a mutilated, destroyed, lost or stolen Security shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Security.

 

“Proceeding”  has the meaning
specified in Section 12.2.

 

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

 

“Purchase
Agreement”  means
the agreement, dated as of the date hereof, between the Company and the Trust
and Trapeza CDO II, LLC.

 

“Redemption
Date”
means, when used with respect to any Security to be redeemed, the date fixed
for such redemption by or pursuant to this Indenture.

 

7

 

“Redemption
Price”
means, when used with respect to any Security to be redeemed, in whole or in
part, the price at which such security or portion thereof is to be redeemed as
fixed by or pursuant to this Indenture.

 

“Reference Banks” has the
meaning specified in Schedule A.

 

“Regular
Record Date”  for
the interest payable on any Interest Payment Date with respect to the
Securities means the date that is fifteen (15) days preceding such Interest
Payment Date (whether or not a Business Day).

 

“Responsible
Officer”
means, with respect to the Trustee, any Senior Vice President, any Vice
President, any Assistant Vice President, the Secretary, any Assistant
Secretary, the Treasurer, any Assistant Treasurer, any Trust Officer or
Assistant Trust Officer, or any other officer of the Corporate Trust Department
of the Trustee 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.

 

“Rights
Plan”  means
a plan of the Company providing for the issuance by the Company to all holders
of its Common Stock of rights entitling the holders thereof to subscribe for or
purchase shares of any class or series of capital stock of the Company which
rights (i) are deemed to be transferred with such shares of such Common Stock
and (ii) are also issued in respect of future issuances of such Common Stock,
in each case until the occurrence of a specified event or events.

 

“Securities”  or “Security”  means any debt
securities or debt security, as the case may be, authenticated and delivered
under this Indenture.

 

“Securities
Act”
means the Securities Act of 1933 or any successor statute thereto, in each case
as amended from time to time.

 

“Securities
Register”  and
“Securities
Registrar”  have
the respective meanings specified in Section 3.5.

 

“Senior
Debt”  means
the principal of and any premium and interest on (including interest accruing
on or after the filing of any petition in bankruptcy or for reorganization
relating to the Company, whether or not such claim for post-petition interest
is allowed in such proceeding) all Debt of the Company, whether incurred on or
prior to the date of this Indenture or thereafter incurred, unless it
is provided in the instrument creating or evidencing the same or pursuant to
which the same is outstanding, that such obligations are not superior in right
of payment to the Preferred Securities;  provided, however, that if the Company is subject to the
regulation and supervision of an “appropriate Federal banking agency” within
the meaning of 12 U.S.C. 1813(q),  the Company shall have received the approval
of such appropriate Federal banking agency  prior to issuing any such
obligation; and
provided,
further, that Senior Debt shall not include any other debt
securities and guarantees in respect of such debt securities issued to any
trust other than the Trust (or a trustee of any such trust), partnership or
other entity affiliated with the Company that is a financing vehicle of the Company
(a “financing entity”) in connection with the issuance by such financing entity
of equity securities or other securities that are treated as equity capital for
regulatory capital purposes guaranteed by the Company pursuant to an

 

8

 

instrument that ranks pari passu with or junior in right of
payment to the Indenture, including, without limitation, securities issued by
PCC Capital I.

 

“Special
Event”  means
the occurrence of a Capital Disqualification Event, an Investment Company Event
or a Tax Event.

 

“Special
Record Date”  for
the payment of any Defaulted Interest means a date fixed by the Trustee
pursuant to Section 3.1.

 

“Stated
Maturity”
means March 20, 2033.

 

“Subsidiary” means a Person more
than fifty percent (50%) of the outstanding voting stock or other voting
interests of which is owned, directly or indirectly, by the Company or by one
or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For purposes of this definition, “voting stock” means stock
that ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.

 

“Tax
Event”
means the receipt by the Company of an Opinion of Counsel experienced in such
matters to the effect that, as a result of (a) 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 (b) any judicial decision or any official
administrative pronouncement (including any private letter ruling, technical
advice memorandum or field service advice) or regulatory procedure, including
any notice or announcement of intent to adopt any such pronouncement or
procedure (an “Administrative Action”), regardless of whether such judicial
decision or Administrative Action is issued to or in connection with a
proceeding involving the Company or the Trust and whether or not subject to
review or appeal, which amendment, change, judicial decision or Administrative
Action is enacted, promulgated or announced, in each case, on or after the date
of issuance of the Securities, there is more than an insubstantial risk that
(i) the Trust is, or will be within ninety (90) days of the date of such
opinion, subject to United States federal income tax with respect to income
received or accrued on the Securities, (ii) interest payable by the Company on
the Securities is not, or within ninety (90) days of the date of such opinion,
will not be, deductible by the Company, in whole or in part, for United States
federal income tax purposes, or (iii) the Trust is, or will be within ninety
(90) days of the date of such opinion, subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

 

“Trust” has the meaning
specified in the first recital of this Indenture.

 

“Trust
Agreement”
means the Amended and
Restated Trust Agreement executed and delivered by the
Company, the Property Trustee, The Bank of New
York (Delaware)  and the Administrative Trustees named
therein, contemporaneously with the execution and delivery of this Indenture,
for the benefit of the holders of the Trust Securities, as amended or supplemented
from time to time.

 

“Trustee”  means the Person
named as the “Trustee” in the first
paragraph of this instrument, solely in its capacity as such and not in its
individual capacity, until a successor Trustee shall have become such pursuant
to the applicable provisions of this Indenture, and, thereafter, “Trustee” shall mean or
include each Person who is then a Trustee hereunder.

 

9

 

“Trust Indenture Act”  means the Trust Indenture
Act of 1939, as amended and as in effect on the date as of this Indenture.

 

“Trust
Securities”
has the meaning specified in the first recital of this Indenture.

 

SECTION
1.2.  Compliance Certificate and Opinions.

 

(a)  Upon any application or request by the
Company to the Trustee to take any action under any provision of this
Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent (including covenants compliance with
which constitutes a condition precedent), if any, provided for in this
Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent (including covenants compliance with which constitutes a
condition precedent), if any, have been complied with, except that, in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

 

(b)  Every certificate with respect to compliance
with a condition or covenant provided for in this Indenture (other than the
certificate provided pursuant to Section 10.3) shall include:

 

(i)  a statement
by each individual signing such certificate or opinion that such individual has
read such covenant or condition and the definitions herein relating thereto;

 

(ii)  a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions of such individual contained in such
certificate or opinion are based;

 

(iii)  a
statement that, in the opinion of such individual, he or she has made such
examination or investigation as is necessary to enable him or her to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

 

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

 

SECTION
1.3.  Forms of Documents Delivered to Trustee.

 

(a)  In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by
only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to other matters,
and any such Person may certify or give an opinion as to such matters in one or
several documents.

 

(b)  Any certificate or opinion of an officer of
the Company may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer
knows, or after reasonable inquiry should know, that the certificate or opinion
or representations with respect to matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate or Opinion of Counsel may
be based, insofar as it relates to

 

10

 

factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or after reasonable inquiry should know,
that the certificate or opinion or representations with respect to such matters
are erroneous.

 

(c)  Where any Person is required to make, give
or execute two or more applications, requests, consents, certificates,
statements, opinions or other instruments under this Indenture, they may, but
need not, be consolidated and form one instrument.

 

(d)  Whenever, subsequent to the receipt by the
Trustee of any Board Resolution, Officers’ Certificate, Opinion of Counsel or
other document or instrument, a clerical, typographical or other inadvertent or
unintentional error or omission shall be discovered therein, a new document or
instrument may be substituted therefor in corrected form with the same force
and effect as if originally received in the corrected form and, irrespective of
the date or dates of the actual execution and/or delivery thereof, such
substitute document or instrument shall be deemed to have been executed and/or
delivered as of the date or dates required with respect to the document or
instrument for which it is substituted. 
Without limiting the generality of the foregoing, any Securities issued
under the authority of such defective document or instrument shall nevertheless
be the valid obligations of the Company entitled to the benefits of this
Indenture equally and ratably with all other Outstanding Securities.

 

SECTION
1.4.  Acts of Holders.

 

(a)  Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given to or taken by Holders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such Holders in
person or by an agent thereof duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments (including any appointment of an agent) is or are
delivered to the Trustee, and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the “Act”  of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Indenture and conclusive in favor of the Trustee and the Company, if made in
the manner provided in this Section 1.4.

 

(b)  The fact and date of the execution by any
Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by the certificate of any notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him or her the
execution thereof. Where such execution is by a Person acting in other than his
or her individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his or her authority. 
The fact and date of the execution by any Person of any such instrument
or writing, or the authority of the Person executing the same, may also be
proved in any other manner that the Trustee deems sufficient and in accordance
with such reasonable rules as the Trustee may determine.

 

(c)  The ownership of Securities shall be proved
by the Securities Register.

 

11

 

(d)  Any request, demand, authorization,
direction, notice, consent, waiver or other action by the Holder of any
Security shall bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done or suffered to be done
by the Trustee or the Company in reliance thereon, whether or not notation of
such action is made upon such Security.

 

(e)  Without limiting the foregoing, a Holder
entitled to take any action hereunder with regard to any particular Security
may do so with regard to all or any part of the principal amount of such
Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any part of such principal
amount.

 

(f)  Except as set forth in paragraph (g) of this
Section 1.4, the Company may set any day as a record date for the
purpose of determining the Holders of Outstanding Securities entitled to give,
make or take any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given,
made or taken by Holders of Securities. If any record date is set pursuant to
this paragraph, the Holders of Outstanding Securities on such record date, and
no other Holders, shall be entitled to take the relevant action, whether or not
such Holders remain Holders after such record date; provided, that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date (as defined below) by Holders of the requisite principal amount
of Outstanding Securities on such record date. 
Nothing in this paragraph shall be construed to prevent the Company from
setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be canceled and of no
effect).  Promptly after any record date
is set pursuant to this paragraph, the Company, at its own expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities in the manner set forth in Section 1.6.

 

(g)  The Trustee may set any day as a record date
for the purpose of determining the Holders of Outstanding Securities entitled
to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration or rescission or annulment thereof referred to in Section
5.2, (iii) any request to institute proceedings referred to in Section
5.7(b) or (iv) any direction referred to in Section 5.12. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities on such record date, and no other Holders, shall be entitled to join
in such notice, declaration, request or direction, whether or not such Holders
remain Holders after such record date; provided, that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities on such
record date. Nothing in this paragraph shall be construed to prevent the
Trustee from setting a new record date for any action for which a record date
has previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be canceled
and of no effect).  Promptly after any
record date is set pursuant to this paragraph, the Trustee, at the Company’s
expense, shall cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Company in writing and to
each Holder of Securities in the manner set forth in Section 1.6.

 

(h)  With respect to any record date set pursuant
to paragraph (f) or (g) of this Section 1.4, the party hereto that sets
such record date may designate any day as the “Expiration Date”

 

12

 

and from time to time may change the Expiration Date
to any earlier or later day; provided,
that no such change shall be effective unless notice of the proposed new
Expiration Date is given to the other party hereto in writing, and to each
Holder of Securities in the manner set forth in Section 1.6, on or prior
to the existing Expiration Date. If an Expiration Date is not designated with
respect to any record date set pursuant to this Section 1.4, the party
hereto that set such record date shall be deemed to have initially designated
the ninetieth (90th) day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date
as provided in this paragraph. Notwithstanding the foregoing, no Expiration
Date shall be later than the one hundred and eightieth (180th) day
after the applicable record date.

 

SECTION
1.5.  Notices, Etc. to Trustee and Company.

 

Any request, demand,
authorization, direction, notice, consent, waiver, Act of Holders, or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with:

 

(a)  the Trustee by any Holder, any holder of
Preferred Securities or the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee
at its Corporate Trust Office, or

 

(b)  the Company by the Trustee, any Holder or
any holder of Preferred Securities shall be sufficient for every purpose
hereunder if in writing and mailed, first class, postage prepaid, to the
Company addressed to it at 30343 Canwood Street, Agoura Hills, CA 91301 or at
any other address previously furnished in writing to the Trustee by the
Company.

 

SECTION
1.6.  Notice to Holders;
Waiver.

 

Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first class, postage prepaid, to each Holder affected by such event to the
address of such Holder as it appears in the Securities Register, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. If, by reason of the suspension of or irregularities in
regular mail service or for any other reason, it shall be impossible or
impracticable to mail notice of any event to Holders when said notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be
deemed to be a sufficient giving of such notice. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

SECTION
1.7.  Effect of Headings and Table of Contents.

 

The Article and Section
headings herein and the Table of Contents are for convenience only and shall
not affect the construction of this Indenture.

 

13

 

SECTION
1.8.  Successors and Assigns.

 

This Indenture shall be
binding upon and shall inure to the benefit of any successor to the Company and
the Trustee, including any successor by operation of law.  Except in connection with a transaction
involving the Company that is permitted under Article VIII and pursuant
to which the assignee agrees in writing to perform the Company’s obligations
hereunder, the Company shall not assign its obligations hereunder.

 

SECTION
1.9.  Separability Clause.

 

If any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby, and there shall be deemed substituted
for the provision at issue a valid, legal and enforceable provision as similar
as possible to the provision at issue.

 

SECTION
1.10.  Benefits of Indenture.

 

Nothing in this Indenture
or in the Securities, express or implied, shall give to any Person, other than
the parties hereto and their successors and assigns, the holders of Senior
Debt, the Holders of the Securities and, to the extent expressly provided in Sections
5.2, 5.8, 5.9, 5.11, 5.13, 9.2 and 10.7,
the holders of Preferred Securities, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

 

SECTION
1.11.  Governing Law.

 

This Indenture and the rights and obligations of each
of the Holders, the Company and the Trustee shall be construed and enforced in
accordance with and governed by the laws of the State of New York without
reference to its conflict of laws provisions (other than Section 5-1401 of the
General Obligations Law).

 

SECTION
1.12.  Submission to Jurisdiction.

 

ANY LEGAL ACTION OR
PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF
THIS INDENTURE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW
YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR
THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF
MANHATTAN). BY EXECUTION AND DELIVERY OF THIS INDENTURE, EACH PARTY ACCEPTS,
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR
LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS INDENTURE.

 

SECTION
1.13.  Non-Business Days.

 

If any Interest Payment
Date, Redemption Date or Stated Maturity of any Security shall not be a
Business Day, then (notwithstanding any other provision of this Indenture or
the Securities) payment of interest, premium or principal or other amounts in
respect of such Security shall not be made on such date, but shall be made on
the next succeeding Business Day

 

14

 

(and no interest shall
accrue in respect of the amounts whose payment is so delayed for the period
from and after such Interest Payment Date, Redemption Date or Stated Maturity,
as the case may be, until such next succeeding Business Day) except that, if
such Business Day falls in the next succeeding calendar year, such payment
shall be made on the immediately preceding Business Day, in each case with the
same force and effect as if made on the Interest Payment Date or Redemption
Date or at the Stated Maturity.

 

ARTICLE
II

 

SECURITY FORMS

 

SECTION
2.1.  Form of Security.

 

Any Security issued hereunder shall be in
substantially the following form:

 

PACIFIC CREST CAPITAL, INC.

 

Floating Rate Junior Subordinated Note due 2033

 

	
  No. 1

  	
  $13,750,000

  

 

Pacific Crest Capital,
Inc., a corporation organized and existing under the laws of Delaware
(hereinafter called the “Company,”
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to
[                               ],
or registered assigns, the principal sum of Thirteen Million Seven Hundred and
Fifty Thousand Dollars ($13,750,000) or such other principal amount represented
hereby as may be set forth in the records of the Securities Registrar
hereinafter referred to in accordance with the Indenture on March 20,
2033.  The Company further promises to
pay interest on said principal sum from March 20, 2003, or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
quarterly (subject to deferral as set forth herein) in arrears on March 30,
June 30, September 30 and December 30 of each year, commencing June 30, 2003,
or if any such day is not a Business Day, on the next succeeding Business Day
(and no interest shall accrue in respect of the amounts whose payment is so
delayed for the period from and after such Interest Payment Date until such
next succeeding Business Day), except that, if such Business Day falls in the
next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case, with the same force and effect as if made
on the Interest Payment Date, at the fixed rate equal to 6.335% per annum
through the Interest Payment Date in March 2008 and at a variable rate equal to
LIBOR plus 3.25% per annum thereafter, together with Additional Tax Sums, if
any, as provided in Section 10.5 of the Indenture, until the principal
hereof is paid or duly provided for or made available for payment; provided, further,
that any overdue principal, premium or Additional Tax Sums and any overdue
installment of interest shall bear Additional Interest at the fixed rate equal
to 6.335% per annum through the Interest Payment Date in March 2008 and at a
variable rate equal to LIBOR plus 3.25% per annum thereafter (to the extent
that the payment of such interest shall be legally enforceable), compounded
quarterly, from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand.

 

The amount of interest
payable shall be computed on the basis of a 360-day year and the actual number
of days elapsed in the relevant interest period. The amount of interest payable
for

 

15

 

any full interest period
shall be computed by dividing the applicable rate per annum by four. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date shall, as provided in the Indenture, be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest
installment.  Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities not less than ten (10) days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture.

 

So long as no Event of
Default has occurred and is continuing, the Company shall have the right, at
any time and from time to time during the term of this Security, to defer the
payment of interest on this Security for a period of up to twenty (20)
consecutive quarterly interest payment periods (each such period, an “Extension Period”), during which
Extension Period(s), no interest shall be due and payable (except any
Additional Tax Sums that may be due and payable).  No Extension Period shall end on a date other than an Interest
Payment Date, and no Extension Period shall extend beyond the Stated Maturity
of the principal of this Security.  No
interest shall be due and payable during an Extension Period (except any
Additional Tax Sums that may be due and payable), 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 (to the extent
payment of such interest would be legally enforceable) at the fixed rate equal
to 6.335% per annum through the Interest Payment Date in March 2008 and at a
variable rate equal to LIBOR plus 3.25% per annum thereafter, compounded
quarterly, from the dates on which amounts would have otherwise been due and
payable until paid or made available for payment.  At the end of any such Extension Period, the Company shall pay
all interest then accrued and unpaid on this Security, together with such
Additional Interest.  Prior to the
termination of any such Extension Period, the Company may further defer the
payment of interest; provided, that (i) all such previous and further extensions
comprising such Extension Period do not exceed twenty (20) quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an
Interest Payment Date and (iii) no Extension Period shall extend beyond the
Stated Maturity of the principal of this Security.  Upon the termination of any such Extension Period and upon the
payment of all accrued and unpaid interest and any Additional Interest then due
on any Interest Payment Date, the Company may elect to begin a new Extension
Period; provided,
that (i) such Extension Period does not exceed twenty (20) quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an
Interest Payment Date and (iii) no Extension Period shall extend beyond the
Stated Maturity of the principal of this Security.  The Company shall give the Holder of this Security and the
Trustee written notice of its election to begin any such Extension Period at least
one Business Day prior to the next succeeding Interest Payment Date on which
interest on this Security would be payable but for such deferral or, so long as
this Security is held by the Trust, at least one Business Day prior to the
earlier of (i) the next succeeding date on which Distributions on the Preferred
Securities of Pacific Crest  Capital
Trust I would be payable but for such deferral and (ii) the date on which the
Property Trustee of such Trust is required to give notice to any

 

16

 

securities exchange or
other applicable self-regulatory organization or to holders of such Preferred
Securities of the record date for the payment of such Distributions.

 

During any such Extension
Period, the Company 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 Company’s capital stock or (ii) make any payment of principal of or
any interest or premium on or repay, repurchase or redeem any debt securities of
the Company that rank pari passu in all respects with or junior in interest to
this Security (other than (a) repurchases, redemptions or other acquisitions of
shares of capital stock of the Company in connection with (1) any employment
contract, benefit plan or other similar arrangement with or for the benefit of
any one or more employees, officers, directors or consultants, (2) a dividend
reinvestment or stockholder stock purchase plan or (3) the issuance of capital
stock of the Company (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 an exchange or
conversion of any class or series of the Company’s capital stock (or any
capital stock of a Subsidiary of the Company) for any class or series of the
Company’s capital stock or of any class or series of the Company’s indebtedness
for any class or series of the Company’s capital stock, (c) the purchase of
fractional interests in shares of the Company’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 Rights Plan, the issuance of rights, stock or other property under any
Rights Plan, or the redemption or repurchase of rights pursuant thereto or (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).

 

Payment of principal of, premium, if any, and interest on this Security
shall be made in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private
debts.  Payments of principal, premium,
if any, and interest due at the Maturity of this Security shall be made at the Place of Payment upon
surrender of such Securities to the Paying Agent, and payments of interest
shall be made, subject to such surrender where applicable, by wire transfer at
such place and to such account at a banking institution in the United States as
may be designated in writing to the Paying Agent at least ten (10) Business
Days prior to the date for payment by the Person entitled thereto unless proper
written transfer instructions have not been received by the relevant record
date, in which case such payments shall be made by check mailed to the address
of such Person as such address shall appear in the Security Register.  Notwithstanding the foregoing, so long as
the holder of this Security is the Property Trustee, the payment of the principal
of (and premium, if any) and interest (including any overdue installment of
interest and Additional Tax Sums, if any) on this Security will be made at such
place and to such account as may be designated by the Property Trustee.

 

The indebtedness evidenced by this Security is, to the extent provided
in the Indenture, subordinate and junior in right of payment to the prior
payment in full of all Senior Debt, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Security,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his or her behalf to take such actions as
may be necessary or appropriate to effectuate the subordination so provided and
(c) appoints the Trustee his or her attorney-in-fact for any and all such
purposes. Each Holder hereof, by his or her acceptance

 

17

 

hereof, waives all notice of
the acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Debt, whether now outstanding or hereafter
incurred, and waives reliance by each such holder upon said provisions.

 

Unless the certificate of
authentication hereon has been executed by the Trustee by manual signature, this
Security shall not be entitled to any benefit under the Indenture or be valid
or obligatory for any purpose.

 

[FORM OF REVERSE OF SECURITY]

 

 

This Security is one of a
duly authorized issue of securities of the Company (the “Securities”) issued under the
Junior Subordinated Indenture, dated as of March 20, 2003 (the “Indenture”), between the
Company and The Bank of New York, as Trustee (in such capacity, the “Trustee,”
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee, the holders of Senior Debt
and the Holders of the Securities, and of the terms upon which the Securities
are, and are to be, authenticated and delivered.

 

All terms used in this
Security that are defined in the Indenture or in the Amended and Restated Trust
Agreement, dated as of March 20, 2003 (as modified, amended or supplemented
from time to time, the “Trust Agreement”),
relating to the Pacific Crest  Capital
Trust I (the “Trust”) among the Company,
as Depositor, the Trustees named therein and the Holders from time to time of
the Trust Securities issued pursuant thereto, shall have the meanings assigned
to them in the Indenture or the Trust Agreement, as the case may be.

 

The Company may, on any Interest Payment Date, at its
option, upon not less than thirty (30) days’ nor more than sixty (60) days’
written notice to the Holders of the Securities (unless a shorter notice period
shall be satisfactory to the Trustee) on or after March 30, 2008 and subject to
the terms and conditions of Article XI of the Indenture, redeem this
Security in whole at any time or in part from time to time at a Redemption
Price equal to one hundred percent (100%) of the principal amount hereof,
together, in the case of any such redemption, with accrued interest, including
any Additional Interest, to but excluding the date fixed for redemption; provided,
that the Company shall have received the prior approval of the Federal Reserve
Board if then required.

 

In addition, upon the
occurrence and during the continuation of a Special Event, the Company may, at
its option, upon not less than thirty (30) days’ nor more than sixty (60) days’
written notice to the Holders of the Securities (unless a shorter notice period
shall be satisfactory to the Trustee), redeem this Security, in whole but not
in part, subject to the terms and conditions of Article XI of the
Indenture at a Redemption Price equal to one hundred percent (100%) of the
principal amount hereof, together, in the case of any such redemption, with
accrued interest, including any Additional Interest, to but excluding the date
fixed for redemption; provided, that the Company shall have received the prior
approval of the Federal Reserve Board if then required.

 

In the event of
redemption of this Security in part only, a new Security or Securities for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon
the

 

18

 

cancellation hereof.  If less than all the Securities are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than sixty (60) days prior to the Redemption Date by the Trustee from the
Outstanding Securities not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of a portion of the principal amount of any Security.

 

The Indenture permits,
with certain exceptions as therein provided, the Company and the Trustee at any
time to enter into a supplemental indenture or indentures for the purpose of
modifying in any manner the rights and obligations of the Company and of the
Holders of the Securities, with the consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities. The Indenture also
contains provisions permitting Holders of specified percentages in principal
amount of the Securities, on behalf of the Holders of all Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.

 

No reference herein to
the Indenture and no provision of this Security or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of and any premium and interest, including any Additional
Interest, on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable in the Securities Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company
maintained for such purpose, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Securities
Registrar and duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Securities, of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

 

The Securities are
issuable only in registered form without coupons in minimum denominations of
$100,000 and any integral multiple of $1,000 in excess thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities
are exchangeable for a like aggregate principal amount of Securities and of
like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

 

No service charge shall
be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

 

The Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name
this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and neither the Company, the Trustee nor any such
agent shall be affected by notice to the contrary.

 

19

 

The Company and, by its
acceptance of this Security or a beneficial interest therein, the Holder of,
and any Person that acquires a beneficial interest in, this Security agree
that, for United States federal, state and local tax purposes, it is intended
that this Security constitute indebtedness.

 

This Security shall be construed and enforced in
accordance with and governed by the laws of the State of New York, without
reference to its conflict of laws provisions (other than Section 5-1401 of the
General Obligations Law).

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed.

 

	
   

  	
  PACIFIC CREST CAPITAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  

 

SECTION
2.2.  Restricted Legend.

 

(a)  Any Security issued hereunder shall bear a
legend in substantially the following form:

 

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC
OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED
EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS SECURITY IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND SUCH SECURITIES, AND ANY INTEREST THEREIN, MAY NOT BE OFFERED,

 

20

 

SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM.  EACH PURCHASER OF ANY
SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE SECURITIES MAY BE RELYING
ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT
PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

 

THE HOLDER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR THE BENEFIT OF THE
COMPANY THAT (A) SUCH SECURITIES MAY BE OFFERED, RESOLD OR OTHERWISE
TRANSFERRED ONLY (I) TO THE COMPANY, (II) TO A PERSON WHOM THE SELLER
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING
OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT
THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF AN
“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, (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR (V) PURSUANT TO AN EXEMPTION FROM THE SECURITIES ACT, IN EACH
CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND, IN THE CASE OF (III) OR
(V), SUBJECT TO THE RIGHT OF THE COMPANY TO REQUIRE AN OPINION OF COUNSEL AND
OTHER INFORMATION SATISFACTORY TO IT AND (B) THE HOLDER WILL NOTIFY ANY
PURCHASER OF ANY SECURITIES FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN
(A) ABOVE.

 

THE SECURITIES
WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN AGGREGATE
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000. ANY ATTEMPTED TRANSFER OF
SECURITIES, OR ANY INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE PRINCIPAL
AMOUNT OF LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE
DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY
PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PRINCIPAL OF OR INTEREST
ON SUCH SECURITIES, OR ANY INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH SECURITIES.

 

THE HOLDER OF THIS
SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF ALSO
AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO

 

21

 

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 THIS SECURITY OR ANY INTEREST THEREIN. ANY PURCHASER
OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT IT IS NOT AN EMPLOYEE
BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH
SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON
BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING
THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE.

 

THIS
OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION (THE “FDIC”).”

 

(b)  The above legends shall not be removed from
any Security unless there is delivered to the Company satisfactory evidence,
which may include an opinion of counsel, as may be reasonably required to
ensure that any future transfers thereof may be made without restriction under
or violation of the provisions of the Securities Act and other applicable law.  Upon provision of such satisfactory
evidence, the Company shall execute and deliver to the Trustee, and the Trustee
shall deliver, at the written direction of the Company, a Security that does
not bear the legend.

 

SECTION
2.3.  Form of Trustee’s Certificate of
Authentication.

 

The Trustee’s
certificates of authentication shall be in substantially the following form:

 

This is one of the
Securities designated therein referred to in the within-mentioned Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  officer

  

 

SECTION
2.4.  Temporary Securities.

 

(a)  Pending the preparation of definitive
Securities, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities that are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any denomination,

 

22

 

substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as evidenced by their execution of
such Securities.

 

(b)  If temporary Securities are issued, the
Company will cause definitive Securities to be prepared without unreasonable
delay. After the preparation of definitive Securities, the temporary Securities
shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for that purpose
without charge to the Holder. Upon surrender for cancellation of any one or
more temporary Securities, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more definitive Securities
of any authorized denominations having the same Original Issue Date and Stated
Maturity and having the same terms as such temporary Securities. Until so
exchanged, the temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities.

 

SECTION
2.5.  Definitive Securities.

 

The Securities issued on
the Original Issue Date shall be in definitive form.  The definitive Securities shall be printed, lithographed or
engraved, or produced by any combination of these methods, if required by any
securities exchange on which the Securities may be listed, on a steel engraved
border or steel engraved borders or may be produced in any other manner
permitted by the rules of any securities exchange on which the Securities may
be listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.

 

ARTICLE III

 

The Securities

 

SECTION
3.1.  Payment of Principal and Interest.

 

(a)  The unpaid principal amount of the
Securities shall bear interest at the fixed rate equal to 6.335% per annum
through the Interest Payment Date in March 2008 and at a variable rate equal to
LIBOR plus 3.25% per annum thereafter, such interest to accrue from the
Original Issue Date or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, and any overdue principal, premium
or Additional Tax Sums and any overdue installment of interest shall bear
Additional Interest at the fixed rate equal to 6.335% per annum through the
Interest Payment Date in March 2008 and at a variable rate equal to LIBOR plus
3.25% per annum thereafter from the dates such amounts are due until they are
paid or funds for the payment thereof are made available for payment.

 

(b)  Interest and Additional Interest on any
Security that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, except that interest and any
Additional Interest payable on the Stated Maturity (or any date of principal
repayment upon early maturity) of the principal of a Security or on a
Redemption Date shall be paid to the Person to whom principal is paid. The

 

23

 

initial payment of interest on any Security that is
issued between a Regular Record Date and the related Interest Payment Date
shall be payable as provided in such Security.

 

(c)  Any interest on any Security that is due and
payable, but is not timely paid or duly provided for, on any Interest Payment
Date for Securities (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the registered Holder on the relevant Regular Record
Date by virtue of having been such Holder, and such Defaulted Interest may be
paid by the Company, at its election in each case, as provided in paragraph (i)
or (ii) below:

 

(i)  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest (a “Special Record Date”), which shall be fixed in the
following manner.  At least thirty (30)
days prior to the date of the proposed payment, the Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Security and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest. Thereupon
the Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest, which shall be not more than fifteen (15) days and not less than ten
(10) days prior to the date of the proposed payment and not less than ten (10)
days after the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special Record Date and,
in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first class, postage prepaid, to each Holder of a
Security at the address of such Holder as it appears in the Securities Register
not less than ten (10) days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered on such
Special Record Date; or

 

(ii)  The
Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
Securities may be listed and, upon such notice as may be required by such
exchange (or by the Trustee if the Securities are not listed), if, after notice
given by the Company to the Trustee of the proposed payment pursuant to this
clause, such payment shall be deemed practicable by the Trustee.

 

(d)  Payments of interest on the Securities shall
include interest accrued to but excluding the respective Interest Payment
Dates. Interest payments for the Securities shall be computed and paid on the
basis of a 360-day year and the actual number of days elapsed in the relevant
interest period.

 

(e)  Payment of principal of, premium, if any,
and interest on the Securities shall be made in such coin or currency of the
United States of America as at the time of payment is legal tender

 

24

 

for payment of public and private debts.  Payments of principal, premium, if any, and
interest due at the Maturity of such Securities shall be made at the Place of
Payment upon surrender of such Securities to the Paying Agent and payments of
interest shall be made subject to such surrender where applicable, by wire
transfer at such place and to such account at a banking institution in the
United States as may be designated in writing to the Paying Agent at least ten
(10) Business Days prior to the date for payment by the Person entitled thereto
unless proper written transfer instructions have not been received by the
relevant record date, in which case such payments shall be made by check mailed
to the address of such Person as such address shall appear in the Security
Register.  Notwithstanding the
foregoing, so long as the holder of this Security is the Property Trustee, the
payment of the principal of (and premium if any) and interest (including any
overdue installment of interest and Additional Tax Sums, if any) on this
Security will be made at such place and to such account as may be designated by
the Property Trustee.

 

(f)  Subject to the foregoing provisions of this Section
3.1, each Security delivered under this Indenture upon transfer of or in
exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, that were carried by such other
Security.

 

SECTION
3.2.  Denominations.

 

The Securities shall be
in registered form without coupons and shall be issuable in minimum
denominations of $100,000 and any integral multiple of $1,000 in excess
thereof.

 

SECTION
3.3.  Execution, Authentication, Delivery and
Dating.

 

(a)  At any time and from time to time after the
execution and delivery of this Indenture, 
the Company may deliver Securities in an aggregate principal amount
(including all then Outstanding Securities) not in excess of Thirteen Million
Seven Hundred and Fifty Thousand Dollars ($13,750,000) executed by the Company
to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and shall be fully protected in relying upon:

 

(i)  a copy of
any Board Resolution relating thereto; and

 

(ii)  an
Opinion of Counsel stating that such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Company, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles.

 

(b)  The Securities shall be executed on behalf
of the Company by its Chairman of the Board, its Vice Chairman of the Board,
its Chief Executive Officer, its President or one of its Vice Presidents, under
its corporate seal reproduced or impressed thereon and attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities may be manual or facsimile.  Securities bearing the manual or facsimile
signatures of

 

25

 

individuals who were at any time the proper officers
of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of such Securities or did not hold such offices at the date of such
Securities.

 

(c)  No Security shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose, unless there
appears on such Security a certificate of authentication substantially in the
form provided for herein executed by the Trustee by the manual signature of one
of its authorized officers, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never issued
and sold by the Company, and the Company shall deliver such Security to the
Trustee for cancellation as provided in Section 3.8, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

(d)  Each Security shall be dated the date of its
authentication.

 

SECTION
3.4.  Global Securities.

 

(a)  Upon the election of the Holder after the
Original Issue Date, which election need not be in writing, the Securities
owned by such Holder shall be issued in the form of one or more Global
Securities registered in the name of the Depositary or its nominee. Each Global
Security issued under this Indenture shall be registered in the name of the
Depositary designated by the Company for such Global Security or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a single Security for
all purposes of this Indenture.

 

(b)  Notwithstanding any other provision in this
Indenture, no Global Security may be exchanged in whole or in part for
Securities registered, and no transfer of a Global Security in whole or in part
may be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (i) such Depositary advises the
Trustee and the Company in writing that such Depositary is no longer willing or
able to properly discharge its responsibilities as Depositary with respect to
such Global Security, and no qualified successor is appointed by the Company
within ninety (90) days of receipt by the Company of such notice, (ii) such
Depositary ceases to be a clearing agency registered under the Exchange Act and
no successor is appointed by the Company within ninety (90) days after
obtaining knowledge of such event, (iii) the Company executes and delivers to
the Trustee a Company Order stating that the Company elects to terminate the
book-entry system through the Depositary or (iv) an Event of Default shall have
occurred and be continuing.  Upon the
occurrence of any event specified in clause (i), (ii), (iii) or (iv) above, the
Trustee shall notify the Depositary and instruct the Depositary to notify all
owners of beneficial interests in such Global Security of the occurrence of
such event and of the availability of Securities to such owners of beneficial
interests requesting the same.  Upon the
issuance of such Securities and the registration in the Securities Register of
such Securities in the names of the Holders of the beneficial interests
therein, the Trustees shall recognize such holders of beneficial interests as
Holders.

 

26

 

(c)  If any Global Security is to be exchanged
for other Securities or canceled in part, or if another Security is to be
exchanged in whole or in part for a beneficial interest in any Global Security,
then either (i) such Global Security shall be so surrendered for exchange or
cancellation as provided in this Article III or (ii) the principal
amount thereof shall be reduced or increased by an amount equal to the portion
thereof to be so exchanged or canceled, or equal to the principal amount of
such other Security to be so exchanged for a beneficial interest therein, as
the case may be, by means of an appropriate adjustment made on the records of
the Securities Registrar, whereupon the Trustee, in accordance with the
Applicable Depository Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security by the Depositary,
accompanied by registration instructions, the Company shall execute and the
Trustee shall authenticate and deliver any Securities issuable in exchange for
such Global Security (or any portion thereof) in accordance with the
instructions of the Depositary. The Trustee shall not be liable for any delay
in delivery of such instructions and may conclusively rely on, and shall be
fully protected in relying on, such instructions.

 

(d)  Every Security authenticated and delivered
upon registration of transfer of, or in exchange for or in lieu of, a Global
Security or any portion thereof shall be authenticated and delivered in the
form of, and shall be, a Global Security, unless such Security is registered in
the name of a Person other than the Depositary for such Global Security or a
nominee thereof.

 

(e)  Securities distributed to holders of
Book-Entry Preferred Securities (as defined in the applicable Trust Agreement)
upon the dissolution of the Trust shall be distributed in the form of one or
more Global Securities registered in the name of a Depositary or its nominee,
and deposited with the Securities Registrar, as custodian for such Depositary,
or with such Depositary, for credit by the Depositary to the respective
accounts of the beneficial owners of the Securities represented thereby (or
such other accounts as they may direct). 
Securities distributed to holders of Preferred Securities other than
Book-Entry Preferred Securities upon the dissolution of the Trust shall not be
issued in the form of a Global Security or any other form intended to
facilitate book-entry trading in beneficial interests in such Securities.

 

(f)  The Depositary or its nominee, as the
registered owner of a Global Security, shall be the Holder of such Global
Security for all purposes under this Indenture and the Securities, and owners
of beneficial interests in a Global Security shall hold such interests pursuant
to the Applicable Depository Procedures. Accordingly, any such owner’s
beneficial interest in a Global Security shall be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Depositary Participants.  The Securities Registrar and the Trustee
shall be entitled to deal with the Depositary for all purposes of this
Indenture relating to a Global Security (including the payment of principal and
interest thereon and the giving of instructions or directions by owners of
beneficial interests therein and the giving of notices) as the sole Holder of
the Security and shall have no obligations to the owners of beneficial
interests therein.  Neither the Trustee
nor the Securities Registrar shall have any liability in respect of any
transfers effected by the Depositary.

 

(g)  The rights of owners of beneficial interests
in a Global Security shall be exercised only through the Depositary and shall
be limited to those established by law and agreements between such owners and
the Depositary and/or its Depositary Participants.

 

27

 

(h)  No holder of any beneficial interest in any
Global Security held on its behalf by a Depositary shall have any rights under
this Indenture with respect to such Global Security, and such Depositary may be
treated by the Company, the Trustee and any agent of the Company or the Trustee
as the owner of such Global Security for all purposes whatsoever.  None of the Company, the Trustee nor any
agent of the Company or the Trustee will have any responsibility or liability
for any aspect of the records relating to or payments made on account of
beneficial ownership interests of a Global Security or maintaining, supervising
or reviewing any records relating to such beneficial ownership interests.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by a Depositary
or impair, as between a Depositary and such holders of beneficial interests,
the operation of customary practices governing the exercise of the rights of
the Depositary (or its nominee) as Holder of any Security.

 

SECTION
3.5.  Registration, Transfer and Exchange
Generally.

 

(a)  The Trustee shall cause to be kept at the
Corporate Trust Office a register (the “Securities Register”) in which the
registrar and transfer agent with respect to the Securities (the “Securities Registrar”), subject to such
reasonable regulations as it may prescribe, shall provide for the registration
of Securities and of transfers and exchanges of Securities. The Trustee shall
at all times also be the Securities Registrar. 
The provisions of Article VI shall apply to the Trustee in its
role as Securities Registrar.

 

(b)  Upon surrender for registration of transfer
of any Security at the offices or agencies of the Company designated for that
purpose the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of any authorized denominations of like tenor and aggregate
principal amount.

 

(c)  At the option of the Holder, Securities may
be exchanged for other Securities of any authorized denominations, of like
tenor and aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities that the Holder making the exchange is entitled to
receive.

 

(d)  All Securities issued upon any transfer or
exchange of Securities shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such transfer or exchange.

 

(e)  Every Security presented or surrendered for
transfer or exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Securities Registrar, duly executed by the
Holder thereof or such Holder’s attorney duly authorized in writing.

 

(f)  No service charge shall be made to a Holder
for any transfer or exchange of Securities, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer or exchange of Securities.

 

28

 

(g)  Neither the Company nor the Trustee shall be
required pursuant to the provisions of this Section 3.5 (g) to issue,
register the transfer of or exchange any Security during a period beginning at
the opening of business fifteen (15) days before the day of selection for
redemption of Securities pursuant to Article XI and ending at the close
of business on the day of mailing of the notice of redemption or (ii) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except, in the case of any such Security to be redeemed in
part, any portion thereof not to be redeemed.

 

(h)  The Company shall designate an office or
offices or agency or agencies where Securities may be surrendered for
registration or transfer or exchange. 
The Company initially designates the Corporate Trust Office as its
office and agency for such purposes. 
The Company shall give prompt written notice to the Trustee and to the
Holders of any change in the location of any such office or agency.

 

SECTION
3.6.  Mutilated, Destroyed, Lost and Stolen
Securities.

 

(a)  If any mutilated Security is surrendered to
the Trustee together with such security or indemnity as may be required by the
Company or the Trustee to save each of them harmless, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of like tenor and aggregate principal amount and bearing a number not
contemporaneously outstanding.

 

(b)  If there shall be delivered to the Company
and to the Trustee (i) evidence to their satisfaction of the destruction, loss
or theft of any Security and (ii) such security or indemnity as may be required
by them to save each of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its written request the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of like tenor and aggregate principal amount as such
destroyed, lost or stolen Security, and bearing a number not contemporaneously
outstanding.

 

(c)  If any such mutilated, destroyed, lost or
stolen Security has become or is about to become due and payable, the Company
in its discretion may, instead of issuing a new Security, pay such Security.

 

(d)  Upon the issuance of any new Security under
this Section 3.6, the Company may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

 

(e)  Every new Security issued pursuant to this Section
3.6 in lieu of any mutilated, destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Security shall be at
any time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities duly
issued hereunder.

 

(f)  The provisions of this Section 3.6
are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

 

29

 

SECTION
3.7.  Persons Deemed Owners.

 

The Company, the Trustee
and any agent of the Company or the Trustee shall treat the Person in whose
name any Security is registered as the owner of such Security for the purpose
of receiving payment of principal of and any interest on such Security and for
all other purposes whatsoever, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the
contrary.

 

SECTION
3.8.  Cancellation.

 

All Securities
surrendered for payment, redemption, transfer or exchange shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee, and any such
Securities and Securities surrendered directly to the Trustee for any such
purpose shall be promptly canceled by it. The Company may at any time deliver
to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder that the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be promptly canceled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section 3.8, except as expressly
permitted by this Indenture. All canceled Securities shall be disposed of by
the Trustee in accordance with its customary practices and the Trustee shall
deliver to the Company a certificate of such disposition.

 

SECTION
3.9.  Deferrals of Interest Payment Dates.

 

(a)  So long as no Event of Default has occurred
and is continuing, the Company shall have the right, at any time and from time
to time during the term of the Security, to defer the payment of interest on
the Securities for a period of up to twenty (20) consecutive quarterly interest
payment periods (each such period, an “Extension Period”), during which Extension
Period(s), the Company shall have the right to make no payments or partial
payments of interest on any Interest Payment Date (except any Additional Tax
Sums that otherwise may be due and payable). 
No Extension Period shall end on a date other than an Interest Payment
Date and no Extension Period shall extend beyond the Stated Maturity of the
principal of the Securities.  No
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 (to the
extent payment of such interest would be legally enforceable) at the fixed rate
equal to 6.335% per annum through the Interest Payment Date in March 2008 and
at a variable rate equal to LIBOR plus 3.25% per annum thereafter compounded
quarterly, from the dates on which amounts would have otherwise been due and
payable until paid or until funds for the payment thereof have been made
available for payment.  At the end of
any such Extension Period, the Company shall pay all interest then accrued and
unpaid on the Securities together with such Additional Interest.  Prior to the termination of any such
Extension Period, the Company may extend such Extension Period and further
defer the payment of interest; provided, that (i) all such previous and further extensions
comprising such Extension Period do not exceed twenty (20) quarterly interest
payment periods, (ii) no Extension Period shall end on a date other than an
Interest Payment Date and (iii) no Extension Period shall extend beyond the
Stated Maturity of the principal of the Securities.  Upon the termination of any such Extension Period and upon the
payment of all accrued and unpaid interest and any Additional Interest then due
on any Interest Payment Date, the Company may elect to begin a new Extension
Period; provided,
that (i) such Extension Period does not exceed twenty (20) quarterly

 

30

 

interest payment periods, (ii) no Extension Period
shall end on a date other than an Interest Payment Date and (iii) no Extension
Period shall extend beyond the Stated Maturity of the principal of the
Securities.  The Company shall give the
Holders of the Securities and the Trustee written notice of its election to
begin any such Extension Period at least one Business Day prior to the next
succeeding Interest Payment Date on which interest on the Securities would be
payable but for such deferral or, so long as any Securities are held by the
Trust, at least one Business Day prior to the earlier of (i) the next
succeeding date on which Distributions on the Preferred Securities of such
Trust would be payable but for such deferral and (ii) the date on which the
Property Trustee of such Trust is required to give notice to any securities
exchange or other applicable self-regulatory organization or to holders of such
Preferred Securities of the record date for the payment of such Distributions.

 

(b)  In connection with any such Extension
Period, the Company shall be subject to the restrictions set forth in Section
10.6(a).

 

SECTION
3.10.  Right of Set-Off.

 

Notwithstanding anything
to the contrary herein, the Company shall have the right to set off any payment
it is otherwise required to make in respect of any Security to the extent the
Company has theretofore made, or is concurrently on the date of such payment
making, a payment under the Guarantee Agreement relating to such Security or to
a holder of Preferred Securities pursuant to an action undertaken under Section
5.8 of this Indenture.

 

SECTION
3.11.  Agreed Tax Treatment.

 

Each Security issued
hereunder shall provide that the Company and, by its acceptance or acquisition
of a Security or a beneficial interest therein, the Holder of, and any Person
that acquires a direct or indirect beneficial interest in, such Security,
intend and agree to treat such Security as indebtedness of the Company for
United States Federal, state and local tax purposes and to treat the Preferred
Securities (including but not limited to all payments and proceeds with respect
to the Preferred Securities) as an undivided beneficial ownership interest in
the Securities (and payments and proceeds therefrom, respectively) for United
States Federal, state and local tax purposes. 
The provisions of this Indenture shall be interpreted to further this
intention and agreement of the parties.

 

SECTION
3.12.  CUSIP Numbers.

 

The Company in issuing
the Securities may use “CUSIP” numbers (if then generally in use), and, if so,
the Trustee shall use “CUSIP” numbers in notices of redemption and other
similar or related materials as a convenience to Holders; provided,
that any such notice or other materials may state that no representation is
made as to the correctness of such numbers either as printed on the Securities
or as contained in any notice of redemption or other materials and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers.

 

31

 

ARTICLE
IV

 

Satisfaction
and Discharge

 

SECTION
4.1.  Satisfaction and Discharge of Indenture.

 

This Indenture shall,
upon Company Request, cease to be of further effect (except as to any surviving
rights of registration of transfer or exchange of Securities herein expressly
provided for and as otherwise provided in this Section 4.1) and the
Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when

 

(a)  either

 

(i) all Securities theretofore authenticated and
delivered (other than (A) Securities that have been mutilated, destroyed, lost
or stolen and that have been replaced or paid as provided in Section 3.6
and (B) Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter repaid to
the Company or discharged from such trust as provided in Section 10.2)
have been delivered to the Trustee for cancellation; or

 

(ii) all such Securities not theretofore delivered to
the Trustee for cancellation

 

(A)                              have
become due and payable, or

 

(B)                                will
become due and payable at their Stated Maturity within one year of the date of
deposit, or

 

(C)                                are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Company,

 

and the Company, in the case of subclause
(ii)(A), (B) or (C) above, has deposited or caused to be deposited with the
Trustee as trust funds in trust for such purpose (x) an amount in the currency
or currencies in which the Securities are payable, (y) Government Obligations
which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than the due
date of any payment, money in an amount or (z) a combination thereof, in each
case sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge the entire indebtedness on such Securities
not theretofore delivered to the Trustee for cancellation, for principal and
any premium and interest (including any Additional Interest) to the date of such
deposit (in the case of Securities that have become due and payable) or to the
Stated Maturity (or any date of principal repayment upon early maturity) or
Redemption Date, as the case may be;

 

(b)  the Company has paid or caused to be paid
all other sums payable hereunder by the Company; and

 

32

 

(c)  the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 6.6,
the obligations of the Company to any Authenticating Agent under Section
6.11 and, if money shall have been deposited with the Trustee pursuant to
subclause (a)(ii) of this Section 4.1, the obligations of the Trustee
under Section 4.2 and Section 10.2(e) shall survive.

 

SECTION
4.2.  Application of Trust
Money.

 

Subject to the provisions
Section 10.2(e), all money deposited with the Trustee pursuant to Section
4.1 shall be held in trust and applied by the Trustee, in accordance with
the provisions of the Securities and this Indenture, to the payment in
accordance with Section 3.1, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest (including any Additional Interest) for the payment of which such
money or obligations have been deposited with or received by the Trustee.  Moneys held by the Trustee under this Section
4.2 shall not be subject to the claims of holders of Senior Debt under Article
XII.

 

ARTICLE
V

 

Remedies

 

SECTION
5.1.  Events of Default.

 

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

 

(a)  default in the payment of any interest upon
any Security, including any Additional Interest in respect thereof, when it
becomes due and payable, and continuance of such default for a period of thirty
(30) days (subject to the deferral of any due date in the case of an Extension
Period); or

 

(b)  default in the payment of the principal of
or any premium on any Security at its Maturity; or

 

(c)  default in the performance, or breach, of
any covenant or warranty of the Company in this Indenture and continuance of
such default or breach for a period of thirty (30) days after there has been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least twenty five percent (25%) in
aggregate principal amount of the Outstanding 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;

 

33

 

(d)  the entry by a court having jurisdiction in
the premises of  a decree or order
adjudging the Company a bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or
in respect of the Company under any applicable Federal or state bankruptcy,
insolvency, reorganization or other similar law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or ordering the
winding up or liquidation of its affairs, and the continuance of any such
decree or order for relief or any such other decree or order unstayed and in
effect for a period of sixty (60) consecutive days; or

 

(e)  the institution by the Company of
proceedings to be adjudicated a bankrupt or insolvent, or the consent by the
Company to the institution of bankruptcy or insolvency proceedings against it,
or the filing by the Company of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or state bankruptcy,
insolvency, reorganization or other similar law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property, or
the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally as they
become due and its willingness to be adjudicated a bankrupt or insolvent, or
the taking of corporate action by the Company in furtherance of any such
action.

 

(f)  the Trust shall have voluntarily or
involuntarily liquidated, dissolved, wound-up its business or otherwise
terminated its existence, except in connection with (1) the distribution
of the Securities to holders of the Preferred Securities in liquidation of
their interests in the Trust, (2) the redemption of all of the outstanding
Preferred Securities or (3) certain mergers, consolidations or amalgamations,
each as and to the extent permitted by the Trust Agreement.

 

SECTION
5.2.  Acceleration of Maturity; Rescission and
Annulment.

 

(a)  If an Event of Default occurs and is
continuing, then and in every such case the Trustee or the Holders of not less
than twenty five percent (25%) in aggregate principal amount of the Outstanding
Securities may declare the principal amount of all the Securities to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by Holders), provided, that if, upon an Event of Default, the Trustee
or the Holders of not less than twenty five percent (25%) in principal amount
of the Outstanding Securities fail to declare the principal of all the
Outstanding Securities to be immediately due and payable, the holders of at
least twenty five percent (25%) in aggregate Liquidation Amount (as defined in
the Trust Agreement) of the Preferred Securities then outstanding shall have
the right to make such declaration by a notice in writing to the Property Trustee,
the Company and the Trustee; and upon any such declaration the principal amount
of and the accrued interest (including any Additional Interest) on all the
Securities shall become immediately due and payable.

 

(b)  At any time after such a declaration of acceleration
with respect to Securities has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter
provided in this Article V, the Holders of a majority in aggregate
principal amount of the Outstanding Securities, by written notice to the
Indenture Trustee, or the Holders of a majority in aggregate liquidation amount
of the Preferred Securities, by written

 

34

 

notice to the Property Trustee, the Company and the
Trustee, may rescind and annul such declaration and its consequences if:

 

(i)  the
Company has paid or deposited with the Trustee a sum sufficient to pay:

 

(A)                              all
overdue installments of interest on all Securities,

 

(B)                                any
accrued Additional Interest on all Securities,

 

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

 

(D)                               all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, the Property Trustee and
their agents and counsel; and

 

(ii)  all
Events of Default with respect to Securities, other than the non-payment of the
principal of Securities that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.13;

 

provided,
that if the Holders of such Securities fail to annul such declaration and waive
such default, the holders of not less than a majority in aggregate Liquidation
Amount (as defined in the Trust Agreement) of the Preferred Securities then
outstanding shall also have the right to rescind and annul such declaration and
its consequences by written notice to the Property Trustee, the Company and the
Trustee, subject to the satisfaction of the conditions set forth in paragraph
(b) of this Section 5.2.  No such
rescission shall affect any subsequent default or impair any right consequent
thereon.

 

SECTION
5.3.  Collection of Indebtedness and Suits for
Enforcement by Trustee.

 

(a)  The Company covenants that if:

 

(i)  default is
made in the payment of any installment of interest (including any Additional
Interest) on any Security when such interest becomes due and payable and such
default continues for a period of thirty (30) days, or

 

(ii)  default
is made in the payment of the principal of and any premium on any Security at
the Maturity thereof,

 

the Company will, upon demand of the Trustee, pay to
the Trustee, for the benefit of the Holders of such Securities, the whole
amount then due and payable on such Securities for principal and any premium
and interest (including any Additional Interest) and, in addition thereto, all
amounts owing the Trustee under Section 6.6.

 

(b)  If the Company fails to pay such amounts
forthwith upon such demand, the Trustee, in its own name and as trustee of an
express trust, may institute a judicial proceeding for the

 

35

 

collection of the sums so due and unpaid, and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon the Securities, wherever
situated.

 

(c)  If an Event of Default with respect to
Securities occurs and is continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of the Holders of Securities
by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

 

SECTION
5.4.  Trustee May File Proofs of Claim.

 

In case of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or similar judicial proceeding relative to the Company
(or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized hereunder in order to have
claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to first pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts owing the Trustee, any predecessor Trustee
and other Persons under Section 6.6.

 

SECTION
5.5.  Trustee May Enforce Claim Without Possession
of Securities.

 

All rights of action and
claims under this Indenture or the Securities may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, subject to Article XII and after
provision for the payment of all the amounts owing the Trustee, any predecessor
Trustee and other Persons under Section 6.6, be for the ratable benefit
of the Holders of the Securities in respect of which such judgment has been
recovered.

 

SECTION
5.6.  Application of Money Collected.

 

Any money or property
collected or to be applied by the Trustee with respect to the Securities
pursuant to this Article V shall be applied in the following order, at
the date or dates fixed by the Trustee and, in case of the distribution of such
money or property on account of principal or any premium or interest (including
any Additional Interest), upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

 

36

 

FIRST: To the payment of
all amounts due the Trustee, any predecessor Trustee and other Persons under Section
6.6;

 

SECOND: To the payment of
all Senior Debt of the Company if and to the extent required by Article XII.

 

THIRD:  Subject to Article XII, to the
payment of the amounts then due and unpaid upon the Securities for principal
and any premium and interest (including any Additional Interest) in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal and any premium and interest (including
any Additional Interest), respectively; and

 

FOURTH: The balance, if
any, to the Person or Persons entitled thereto.

 

SECTION
5.7.  Limitation on Suits.

 

Subject to Section 5.8,
no Holder of any Securities shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture or for the appointment of
a custodian, receiver, assignee, trustee, liquidator, sequestrator (or other
similar official) or for any other remedy hereunder, unless:

 

(a)  such Holder has previously given written
notice to the Trustee of a continuing Event of Default with respect to the
Securities;

 

(b)  the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

 

(c)  such Holder or Holders have offered to the
Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request;

 

(d)  the Trustee after its receipt of such
notice, request and offer of indemnity has failed to institute any such
proceeding for sixty (60) days; and

 

(e)  no direction inconsistent with such written
request has been given to the Trustee during such sixty (60)-day period by the
Holders of a majority in aggregate principal amount of the Outstanding
Securities;

 

it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by
availing itself of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holders of Securities, or to obtain or to
seek to obtain priority or preference over any other of such Holders or to
enforce any right under this Indenture, except in the manner herein provided
and for the equal and ratable benefit of all such Holders.

 

SECTION
5.8.  Unconditional Right of Holders to Receive
Principal, Premium and Interest; Direct Action by Holders of Preferred
Securities.

 

Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of and

 

37

 

any premium on such Security
at its Maturity and payment of interest (including any Additional Interest) on
such Security when due and payable and to institute suit for the enforcement of
any such payment, and such right shall not be impaired without the consent of
such Holder. Any registered holder of the Preferred Securities shall have the
right, upon the occurrence of an Event of Default described in Section 5.1(a)
or Section 5.1(b), to institute a suit directly against the Company for
enforcement of payment to such holder of principal of and any premium and
interest (including any Additional Interest) on the Securities having a
principal amount equal to the aggregate Liquidation Amount (as defined in the
Trust Agreement) of the Preferred Securities held by such holder.

 

SECTION
5.9.  Restoration of Rights and Remedies.

 

If the Trustee, any
Holder or any holder of Preferred Securities has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee, such Holder or such holder of Preferred Securities, then and in
every such case the Company, the Trustee, such Holders and such holder of
Preferred Securities shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee, such Holder and such holder
of Preferred Securities shall continue as though no such proceeding had been instituted.

 

SECTION
5.10.  Rights and Remedies Cumulative.

 

Except as otherwise
provided in Section 3.6(f), no right or remedy herein conferred upon or
reserved to the Trustee or the Holders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

 

SECTION
5.11.  Delay or Omission Not Waiver.

 

No delay or omission of
the Trustee, any Holder of any Securities or any holder of any Preferred
Security to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. 
Every right and remedy given by this Article V or by law to the
Trustee or to the Holders and the right and remedy given to the holders of
Preferred Securities by Section 5.8 may be exercised from time to time,
and as often as may be deemed expedient, by the Trustee, the Holders or the
holders of Preferred Securities, as the case may be.

 

SECTION
5.12.  Control by Holders.

 

The Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee; provided, that:

 

(a)  such direction shall not be in conflict with
any rule of law or with this Indenture,

 

38

 

(b)  the Trustee may take any other action deemed
proper by the Trustee that is not inconsistent with such direction, and

 

(c)  subject to the provisions of Section 6.2,
the Trustee shall have the right to decline to follow such direction if a
Responsible Officer or Officers of the Trustee shall, in good faith, reasonably
determine that the proceeding so directed would be unjustly prejudicial to the
Holders not joining in any such direction or would involve the Trustee in
personal liability.

 

SECTION
5.13.  Waiver of Past Defaults.

 

(a)  The Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities and the holders of a
majority in aggregate Liquidation Amount (as defined in the Trust Agreement) of
the Preferred Securities may waive any past Event of Default hereunder and its
consequences except an Event of Default:

 

(i)  in the
payment of the principal of or any premium or interest (including any
Additional Interest) on any Security (unless such Event of Default has been cured
and the Company has paid to or deposited with the Trustee a sum sufficient to
pay all installments of interest (including any Additional Interest) due and
past due and all principal of and any premium on all Securities due otherwise
than by acceleration), or

 

(ii)  in
respect of a covenant or provision hereof that under Article IX cannot
be modified or amended without the consent of each Holder of any Outstanding
Security.

 

(b)  Any such waiver shall be deemed to be on
behalf of the Holders of all the Securities or, in the case of a waiver by
holders of Preferred Securities issued by such Trust, by all holders of
Preferred Securities.

 

(c)  Upon any such waiver, such Event of Default
shall cease to exist and any Event of Default arising therefrom shall be deemed
to have been cured for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Event of Default or impair any right
consequent thereon.

 

SECTION
5.14.  Undertaking for Costs.

 

All parties to this
Indenture agree, and each Holder of any Security by his or her acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken or omitted
by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.14 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than ten percent (10%) in aggregate principal
amount of the Outstanding Securities, or to any suit instituted by any Holder
for the enforcement of the payment of the principal of or any premium on the
Security after the Stated Maturity or any interest (including any Additional
Interest) on any Security after it is due and payable.

 

39

 

SECTION
5.15.  Waiver of Usury, Stay or Extension Laws.

 

The Company covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any usury, stay or extension law wherever enacted, now or at any
time hereafter in force, which may affect the covenants or the performance of
this Indenture; and the Company (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, and covenants
that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

 

ARTICLE VI

 

The Trustee

 

SECTION
6.1.  Corporate Trustee
Required.

 

There shall at all times
be a Trustee hereunder with respect to the Securities.  The Trustee shall be a corporation organized
and doing business under the laws of the United States or of any state thereof,
authorized to exercise corporate trust powers, having a combined capital and
surplus of at least $50,000,000, subject to supervision or examination by
Federal or state authority and having an office within the United States. If
such corporation publishes reports of condition at least annually, pursuant to
law or to the requirements of such supervising or examining authority, then,
for the purposes of this Section 6.1, 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.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 6.1, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article VI.

 

SECTION
6.2.  Certain Duties and Responsibilities.

 

Except during the
continuance of an Event of Default:

 

(i)  the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and

 

(ii)  in the
absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; provided,
that in the case of any such certificates or opinions that by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not they
substantially conform on their face to the requirements of this Indenture.

 

(b)  If an Event of Default known to the Trustee
has occurred and is continuing, the Trustee shall, prior to the receipt of
directions, if any, from the Holders of at least a majority in aggregate
principal amount of the Outstanding Securities, exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and
skill in its exercise, as a

 

40

 

prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs.

 

(c)  Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall be subject to the provisions of this Section 6.2.  To the extent that, at law or in equity, the
Trustee has duties and liabilities relating to the Holders, the Trustee shall
not be liable to any Holder for the Trustee’s good faith reliance on the
provisions of this Indenture.  The
provisions of this Indenture, to the extent that they restrict the duties and
liabilities of the Trustee otherwise existing at law or in equity, are agreed
by the Company and the Holders to replace such other duties and liabilities of
the Trustee.

 

(d)  No provisions of this Indenture shall be
construed to relieve the Trustee from liability with respect to matters that
are within the authority of the Trustee under this Indenture for its own
negligent action, negligent failure to act or willful misconduct, except that:

 

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

 

(ii)  the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of at
least a majority in aggregate principal amount of the Outstanding Securities
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee under this Indenture; and

 

(iii)  the
Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with the Company and money held by the
Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law.

 

SECTION
6.3.  Notice of Defaults.

 

Within ninety (90) days
after the occurrence of any default actually known to the Trustee, the Trustee
shall give the Holders notice of such default unless such default shall have
been cured or waived;  provided,  that except in the
case of a default in the payment of the principal of or any premium or interest
on any Securities, the Trustee shall be fully protected in withholding the
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determines that withholding the notice is in the interest of holders of
Securities; and  provided,  that in the case of
any default of the character specified in Section 5.1(c), no such notice
to Holders shall be given until at least thirty (30) days after the occurrence
thereof. For the purpose of this Section 6.3, the term “default” means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.

 

41

 

SECTION
6.4.  Certain Rights of
Trustee.

 

Subject to the provisions
of Section 6.2:

 

(a)  the Trustee may conclusively rely and shall
be fully protected in acting or refraining from acting in good faith and in
accordance with the terms hereof upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

 

(b)  if (i) in performing its duties under this
Indenture the Trustee is required to decide between alternative courses of
action, (ii) in construing any of the provisions of this Indenture the Trustee
finds ambiguous or inconsistent with any other provisions contained herein or
(iii) the Trustee is unsure of the application of any provision of this
Indenture, then, except as to any matter as to which the Holders are entitled
to decide under the terms of this Indenture, the Trustee shall deliver a notice
to the Company requesting the Company’s written instruction as to the course of
action to be taken and the Trustee shall take such action, or refrain from
taking such action, as the Trustee shall be instructed in writing to take, or
to refrain from taking, by the Company; provided, that if the Trustee
does not receive such instructions from the Company within ten Business Days
after it has delivered such notice or such reasonably shorter period of time
set forth in such notice the Trustee may, but shall be under no duty to, take
such action, or refrain from taking such action, as the Trustee shall deem
advisable and in the best interests of the Holders, in which event the Trustee
shall have no liability except for its own negligence, bad faith or willful
misconduct;

 

(c)  any request or direction of the Company
shall be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a Board
Resolution;

 

(d)  the Trustee may consult with counsel (which
counsel may be counsel to the Trustee, the Company or any of its Affiliates,
and may include any of its employees) and the advice of such counsel or any
Opinion of 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;

 

(e)  the Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders pursuant to this Indenture, unless
such Holders shall have offered to the Trustee security or indemnity reasonably
satisfactory to it against the costs, expenses (including reasonable attorneys’
fees and expenses) and liabilities that might be incurred by it in compliance
with such request or direction, including reasonable advances as may be
requested by the Trustee;

 

(f)  the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, indenture, note or other paper or document, but the Trustee in its
discretion may make such inquiry or investigation into such facts or matters as
it may see fit, and, if the Trustee shall determine to make such inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney;

 

42

 

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

 

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

 

(i)  except as otherwise expressly provided by
this Indenture, the Trustee shall not be under any obligation to take any
action that is discretionary under the provisions of this Indenture;

 

(j)  without prejudice to any other rights
available to the Trustee under applicable law, when the Trustee incurs expenses
or renders services in connection with any bankruptcy, insolvency or other
proceeding referred to in clauses (d) or (e) of the definition of Event of
Default, such expenses (including legal fees and expenses of its agents and
counsel) and the compensation for such services are intended to constitute
expenses of administration under any bankruptcy laws or law relating to
creditors rights generally;

 

(k)  whenever in the administration of this
Indenture the Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officers’
Certificate addressing such matter, which, upon receipt of such request, shall
be promptly delivered by the Company;

 

(l)  the Trustee shall not be charged with
knowledge of any Event of Default unless either (i) a Responsible Officer of the
Trustee shall have actual knowledge or (ii) the Trustee shall have received
notice thereof from the Company or a Holder; and

 

(m)  in the event that the Trustee is also acting
as Paying Agent, Authenticating Agent or Securities Registrar hereunder, the rights
and protections afforded to the Trustee pursuant to this Article VI
shall also be afforded such Paying Agent, Authenticating Agent,  or 
Securities Registrar.

 

SECTION
6.5.  May Hold Securities.

 

The Trustee, any
Authenticating Agent, any Paying Agent, any Securities Registrar or any other
agent of the Company, in its individual or any other capacity, may become the
owner or pledgee of Securities and may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Securities Registrar or such other agent.

 

43

 

SECTION
6.6.  Compensation; Reimbursement; Indemnity.

 

(a)  The Company agrees

 

(i)  to pay to
the Trustee from time to time reasonable compensation for all services rendered
by it hereunder in such amounts as the Company and the Trustee 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);

 

(ii)  to
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence, bad faith or
willful misconduct; and

 

(iii)  to the
fullest extent permitted by applicable law, to indemnify the Trustee and its
Affiliates, and their officers, directors, shareholders, agents,
representatives and employees for, and to hold them harmless against, any loss,
damage, liability, tax (other than income, franchise or other taxes imposed on
amounts paid pursuant to (i) or (ii) hereof), penalty, expense or claim of any
kind or nature whatsoever incurred without negligence, bad faith or willful
misconduct on its part arising out of or in connection with the acceptance or
administration of this trust or the performance of the Trustee’s duties
hereunder, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder.

 

(b)  To secure the Company’s payment obligations
in this Section 6.6, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee, other
than money or property held in trust to pay principal and interest on
particular Securities.  Such lien shall
survive the satisfaction and discharge of this Indenture or the resignation or
removal of the Trustee.

 

(c)  The obligations of the Company under this Section
6.6 shall survive the satisfaction and discharge of this Indenture and the
earlier resignation or removal of the Trustee.

 

(d)  In no event shall the Trustee be liable for
any indirect, special, punitive or consequential loss or damage of any kind
whatsoever, including, but not limited to, lost profits, even if the Trustee
has been advised of the likelihood of such loss or damage and regardless of the
form of action.

 

(e)  In no event shall the Trustee be liable for
any failure or delay in the performance of its obligations hereunder because of
circumstances beyond its control, including, but not limited to, acts of God,
flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
government action, including any laws, ordinances, regulations, governmental
action or the like which delay, restrict or prohibit the providing of the
services contemplated by this Indenture.

 

44

 

SECTION
6.7.  Resignation and Removal; Appointment of
Successor.

 

(a)  No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this Article VI shall
become effective until the acceptance of appointment by the successor Trustee
under Section 6.8.

 

(b)  The Trustee may resign at any time by giving
written notice thereof to the Company.

 

(c)  Unless an Event of Default shall have
occurred and be continuing, the Trustee may be removed at any time by the
Company by a Board Resolution.  If an
Event of Default shall have occurred and be continuing, the Trustee may be
removed by Act of the Holders of a majority in aggregate principal amount of
the Outstanding Securities, delivered to the Trustee and to the Company.

 

(d)  If the Trustee shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of
Trustee for any reason, at a time when no Event of Default shall have occurred
and be continuing, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee, and such successor Trustee and the retiring Trustee shall
comply with the applicable requirements of Section 6.8. If the Trustee
shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any reason, at a time when an Event of
Default shall have occurred and be continuing, the Holders, by Act of the
Holders of a majority in aggregate principal amount of the Outstanding
Securities, shall promptly appoint a successor Trustee, and such successor
Trustee and the retiring Trustee shall comply with the applicable requirements
of Section 6.8. If no successor Trustee shall have been so appointed by
the Company or the Holders and accepted appointment within sixty (60) days
after the giving of a notice of resignation by the Trustee or the removal of
the Trustee in the manner required by Section 6.8, any Holder who has
been a bona fide Holder of a Security for at least six months may, on behalf of
such Holder and all others similarly situated, and any resigning Trustee may,
at the expense of the Company, petition any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(e)  The Company shall give notice to all Holders
in the manner provided in Section 1.6 of each resignation and each
removal of the Trustee and each appointment of a successor Trustee.  Each notice shall include the name of the
successor Trustee and the address of its Corporate Trust Office.

 

SECTION
6.8.  Acceptance of Appointment by Successor.

 

(a)  In case of the appointment hereunder of a
successor Trustee, each successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

 

45

 

(b)  Upon request of any such successor Trustee,
the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all rights, powers and
trusts referred to in paragraph (a) of this Section 6.8.

 

(c)  No successor Trustee shall accept its
appointment unless at the time of such acceptance such successor Trustee shall
be qualified and eligible under this Article VI.

 

SECTION
6.9.  Merger, Conversion, Consolidation or
Succession to Business.

 

Any Person into which the
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
Trustee shall be a party, or any Person succeeding to all or substantially all
of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, provided, that such Person shall
be otherwise qualified and eligible under this Article VI. In case any
Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation or as
otherwise provided above in this Section 6.9 to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated, and in case any Securities shall not have been authenticated,
any successor to the Trustee may authenticate such Securities either in the
name of any predecessor Trustee or in the name of such successor Trustee, and
in all cases the certificate of authentication shall have the full force which
it is provided anywhere in the Securities or in this Indenture that the
certificate of the Trustee shall have.

 

SECTION
6.10.  Not Responsible for Recitals or Issuance of
Securities.

 

The recitals contained
herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither
the Trustee nor any Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of the Securities or the proceeds thereof.

 

SECTION
6.11.  Appointment of Authenticating Agent.

 

(a)  The Trustee may appoint an Authenticating
Agent or Agents with respect to the Securities, which shall be authorized to
act on behalf of the Trustee to authenticate Securities issued upon original
issue and upon exchange, registration of transfer or partial redemption thereof
or pursuant to Section 3.6, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory
for all purposes as if authenticated by the Trustee hereunder. Wherever
reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee’s certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, or of any State
or Territory thereof or the District of Columbia, authorized under such laws to
act as Authenticating Agent, having a combined capital and surplus of not less
than $50,000,000 and subject to supervision or examination by Federal or state
authority. If such

 

46

 

Authenticating Agent publishes reports of condition at
least annually pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section 6.11 the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section 6.11, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section 6.11.

 

(b)  Any Person into which an Authenticating Agent
may be merged or converted or with which it may be consolidated, or any Person
resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any Person succeeding to all or
substantially all of the corporate trust business of an Authenticating Agent
shall be the successor Authenticating Agent hereunder, provided such Person
shall be otherwise eligible under this Section 6.11, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

 

(c)  An Authenticating Agent may resign at any
time by giving written notice thereof to the Trustee and to the Company. The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in
case at any time such Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.11, the Trustee may
appoint a successor Authenticating Agent eligible under the provisions of this Section
6.11, which shall be acceptable to the Company, and shall give notice of
such appointment to all Holders. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent.

 

(d)  The Company agrees to pay to each
Authenticating Agent from time to time reasonable compensation for its services
under this Section 6.11 in such amounts as the Company and the
Authenticating Agent shall agree from time to time.

 

(e)  If an appointment of an Authenticating Agent
is made pursuant to this Section 6.11, the Securities may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an
alternative certificate of authentication in the following form:

 

This is one of the Securities designated therein
referred to in the within mentioned Indenture.

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, not in its individual
  capacity, but solely as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authenticating Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

47

 

ARTICLE
VII

 

HOLDER’S LISTS AND REPORTS BY
TRUSTEE AND COMPANY

 

SECTION
7.1.  Company to Furnish Trustee Names and
Addresses of Holders.

 

The Company will furnish
or cause to be furnished to the Trustee:

 

(a)  semi-annually, on or before June 30 and
December 31 of each year, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of a date not more than
fifteen (15) days prior to the delivery thereof, and

 

(b)  at such other times as the Trustee may
request in writing, within thirty (30) days after the receipt by the Company of
any such request, a list of similar form and content as of a date not more than
fifteen (15) days prior to the time such list is furnished,

 

in each case to the extent such information is in the
possession or control of the Company and has not otherwise been received by the
Trustee in its capacity as Securities Registrar.

 

SECTION
7.2.  Preservation of Information, Communications
to Holders.

 

(a)  The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 7.1
and the names and addresses of Holders received by the Trustee in its capacity
as Securities Registrar. The Trustee may destroy any list furnished to it as
provided in Section 7.1 upon receipt of a new list so furnished.

 

(b)  The rights of Holders to communicate with
other Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and privileges of the Trustee, shall
be as provided in the Trust Indenture Act.

 

(c)  Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of information as to the names and
addresses of the Holders made pursuant to the Trust Indenture Act.

 

SECTION
7.3.  Reports by Company.

 

(a)                                  The
Company shall furnish to the Holders and to prospective purchasers of
Securities, upon their request, the information required to be furnished
pursuant to Rule 144A(d)(4) under the Securities Act.  The Company shall furnish to the Trustee and, so long as the
Property Trustee holds any of the Securities, the Company shall furnish to the
Property Trustee, reports on Form FR Y-9C, FR Y-9LP and FR Y-6 promptly
following their filing with the Federal Reserve Board.

 

(b)                                 The
Company shall furnish to each of (i) the Trustee, (ii) the Holders and to subsequent
holders of Securities, (iii) Trapeza Manager, Inc. (at 507 Carew Tower, 441
Vine

 

48

 

Street, Cincinnati, OH
45202, or such other address as designated by Trapeza Manager, Inc.) and to any
beneficial owner of the Securities identified by Trapeza Manager, Inc., a duly
completed and executed certificate in the form attached hereto as Exhibit A,
including the attachments referenced in such Exhibit, which certificate and
amendments shall be so furnished by the Company not later than forty five (45)
days after the end of each of the first three fiscal quarters of each fiscal
year of the Company and not later than ninety (90) days after the end of each
fiscal year of the Company.

 

ARTICLE
VIII

 

Consolidation,
Merger, Conveyance, Transfer or Lease

 

SECTION
8.1.  Company May Consolidate, Etc., Only on
Certain Terms.

 

The Company shall not
consolidate with or merge into any other Person or convey, transfer or lease
its properties and assets substantially as an entirety to any Person, and no
Person shall consolidate with or merge into the Company or convey, transfer or
lease its properties and assets substantially as an entirety to the Company,
unless:

 

(a)  if the Company shall consolidate with or
merge into another Person or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, the entity formed by such
consolidation or into which the Company is merged or the Person that acquires
by conveyance or transfer, or that leases, the properties and assets of the
Company substantially as an entirety shall be an entity organized and existing
under the laws of the United States of America or any State or Territory
thereof or the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, the due and punctual payment of the principal of
and any premium and interest (including any Additional Interest) on all the
Securities and the performance of every covenant of this Indenture on the part
of the Company to be performed or observed;

 

(b)  immediately after giving effect to such
transaction, no Event of Default, and no event that, after notice or lapse of
time, or both, would constitute an Event of Default, shall have happened and be
continuing; and

 

(c)  the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, any such
supplemental indenture comply with this Article VIII and that all
conditions precedent herein provided for relating to such transaction have been
complied with; and the Trustee may rely upon such Officers’ Certificate and
Opinion of Counsel as conclusive evidence that such transaction complies with
this Section 8.1.

 

SECTION
8.2.  Successor Company Substituted.

 

(a)  Upon any consolidation or merger by the
Company with or into any other Person, or any conveyance, transfer or lease by
the Company of its properties and assets substantially as an entirety to any
Person in accordance with Section 8.1 and the execution and delivery to
the Trustee of the supplemental indenture described in Section 8.1(a),
the successor entity formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer

 

49

 

or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as
the Company herein; and in the event of any such conveyance or transfer,
following the execution and delivery of such supplemental indenture, the
Company shall be discharged from all obligations and covenants under the
Indenture and the Securities.

 

(b)  Such successor Person may cause to be
executed, and may issue either in its own name or in the name of the Company,
any or all of the Securities issuable hereunder that theretofore shall not have
been signed by the Company and delivered to the Trustee; and, upon the order of
such successor Person instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities that previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities that such successor Person thereafter shall
cause to be executed and delivered to the Trustee on its behalf. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture.

 

(c)  In case of any such consolidation, merger,
sale, conveyance or lease, such changes in phraseology and form may be made in
the Securities thereafter to be issued as may be appropriate to reflect such
occurrence.

 

ARTICLE
IX

 

Supplemental
Indentures

 

SECTION
9.1.  Supplemental Indentures without Consent of
Holders.

 

Without the consent of
any Holders, the Company, when authorized by a Board Resolution, and the
Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form reasonably satisfactory to the Trustee,
for any of the following purposes:

 

(a)  to evidence the succession of another Person
to the Company, and the assumption by any such successor of the covenants of
the Company herein and in the Securities; or

 

(b)  to cure any ambiguity, to correct or
supplement any provision herein that may be defective or inconsistent with any
other provision herein, or to make any other provisions with respect to matters
or questions arising under this Indenture, which shall not be inconsistent with
the other provisions of this Indenture, provided, that such action
pursuant to this clause (b) shall not adversely affect in any material respect
the interests of any Holders or the holders of the Preferred Securities; or

 

(c)  to add to the covenants, restrictions or
obligations of the Company or to add to the Events of Default, provided,
that such action pursuant to this clause (c) shall not adversely affect in any
material respect the interests of any Holders or the holders of the Preferred
Securities; or

 

(d)  to modify, eliminate or add to any
provisions of the Indenture or the Securities to such extent as shall be
necessary to ensure that the Securities are treated as indebtedness of the
Company for United States Federal income tax purposes, provided, that such action
pursuant to

 

50

 

this clause (d) shall not adversely affect in any
material respect the interests of any Holders or the holders of the Preferred
Securities.

 

SECTION
9.2.  Supplemental Indentures with Consent of
Holders.

 

(a)  With the consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Securities, by
Act of said Holders delivered to the Company and the Trustee, the Company, when
authorized by a Board Resolution, and the Trustee may enter into an indenture
or indentures supplemental hereto for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this
Indenture or of modifying in any manner the rights of the Holders of Securities
under this Indenture; provided, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Security,

 

(i)  change the
Stated Maturity of the principal or any premium of any Security or change the
date of payment of any installment of interest (including any Additional
Interest) on any Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption thereof or
change the place of payment where, or the coin or currency in which, any
Security or interest thereon is payable, or restrict or impair the right to
institute suit for the enforcement of any such payment on or after such date,
or

 

(ii)  reduce
the percentage in aggregate principal amount of the Outstanding Securities, the
consent of whose Holders is required for any such supplemental indenture, or
the consent of whose Holders is required for any waiver of compliance with any
provision of this Indenture or of defaults hereunder and their consequences
provided for in this Indenture, or

 

(iii)  modify
any of the provisions of this Section 9.2, Section 5.13 or Section
10.7, except to increase any percentage in aggregate principal amount of
the Outstanding Securities, the consent of whose Holders is required for any
reason, or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Security;

 

provided,
further,
that, so long as any Preferred Securities remain outstanding, no amendment
under this Section 9.2 shall be effective until the holders of a
majority in Liquidation Amount (as defined in the Trust Agreement) of the Trust
Securities shall have consented to such amendment; provided, further,
that if the consent of the holder of each Outstanding Security is required for
any amendment under this Indenture, such amendment shall not be effective until
the holder of each Outstanding Trust Security shall have consented to such
amendment.

 

(b)  It shall not be necessary for any Act of
Holders under this Section 9.2 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof.

 

SECTION
9.3.  Execution of Supplemental Indentures.

 

In executing or accepting
the additional trusts created by any supplemental indenture permitted by this Article
IX or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, and shall be fully protected in
conclusively relying upon,

 

51

 

an Officers’ Certificate
and an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture, and that all conditions
precedent herein provided for relating to such action have been complied with.
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that affects the Trustee’s own rights, duties,
indemnities or immunities under this Indenture or otherwise.  Copies of the final form of each
supplemental indenture shall be delivered by the Trustee at the expense of the
Company to each Holder, and, if the Trustee is the Property Trustee, to each
holder of Preferred Securities, promptly 
after the execution thereof.

 

SECTION
9.4.  Effect of Supplemental Indentures.

 

Upon the execution of any
supplemental indenture under this Article IX, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a
part of this Indenture for all purposes; and every Holder of Securities
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

 

SECTION
9.5.  Reference in Securities to Supplemental
Indentures.

 

Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to
this Article IX may, and shall if required by the Company, bear a
notation in form approved by the Company as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities so
modified as to conform, in the opinion of the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.

 

ARTICLE
X

 

Covenants

 

SECTION
10.1.  Payment of Principal, Premium and Interest.

 

The Company covenants and
agrees for the benefit of the Securities that it will duly and punctually pay
the principal of and any premium and interest (including any Additional
Interest) on the Securities in accordance with the terms of the Securities and
this Indenture.

 

SECTION
10.2.  Money for Security Payments to be Held in
Trust.

 

(a)  If the Company shall at any time act as its
own Paying Agent with respect to the Securities, it will, on or before each due
date of the principal of and any premium or interest (including any Additional
Interest) on the Securities, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal and any premium
or interest (including Additional Interest) so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided, and
will promptly notify the Trustee in writing of its failure so to act.

 

(b)  Whenever the Company shall have one or more
Paying Agents, it will, prior to 10:00 a.m., New York City time, on each due
date of the principal of or any premium or interest (including any Additional
Interest) on any Securities, deposit with a Paying Agent a sum sufficient to
pay such amount, such sum to be held as provided in the Trust Indenture Act and

 

52

 

(unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its failure so to act.

 

(c)  The Company will cause each Paying Agent for
the Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section 10.2, that such Paying Agent will (i)
comply with the provisions of the Trust Indenture Act applicable to it as a
Paying Agent and (ii) during the continuance of any default by the Company (or
any other obligor upon the Securities) in the making of any payment in respect
of the Securities, upon the written request of the Trustee, forthwith pay to
the Trustee all sums held in trust by such Paying Agent for payment in respect
of the Securities.

 

(d)  The Company may at any time, for the purpose
of obtaining the satisfaction and discharge of this Indenture or for any other
purpose, pay, or by Company Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by the Company or such Paying Agent, such sums
to be held by the Trustee upon the same trusts as those upon which such sums
were held by the Company or such Paying Agent; and, upon such payment by any
Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

 

(e)  Any money deposited with the Trustee or any
Paying Agent, or then held by the Company in trust for the payment of the
principal of and any premium or interest (including any Additional Interest) on
any Security and remaining unclaimed for two years after such principal and any
premium or interest has become due and payable shall (unless otherwise required
by mandatory provision of applicable escheat or abandoned or unclaimed property
law) be paid on Company Request to the Company, or (if then held by the
Company) shall (unless otherwise required by mandatory provision of applicable
escheat or abandoned or unclaimed property law) be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,  that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than thirty (30) days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

 

SECTION
10.3.  Statement as to
Compliance.

 

The Company shall deliver
to the Trustee, within one hundred and twenty (120) days after the end of each
fiscal year of the Company ending after the date hereof, an Officers’
Certificate covering the preceding calendar year, stating whether or not to the
knowledge of the signers thereof the Company is in default in the performance
or observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder), and if the Company shall be in default, specifying all such
defaults and the nature and status thereof of which they may have knowledge.

 

53

 

SECTION
10.4.  Calculation
Agent.

 

(a)  The Company hereby agrees that for so long
as any of the Securities remain Outstanding, there will at all times be an
agent appointed to calculate LIBOR in respect of each Interest Payment Date in
accordance with the terms of Schedule A (the “Calculation Agent”).  The Company has initially appointed the
Trustee as Calculation Agent for purposes of determining LIBOR for each
Interest Payment Date.  The Calculation
Agent may be removed by the Company at any time.  So long as the Property Trustee holds any of the Securities, the
Calculation Agent shall be the Property Trustee.   If the Calculation Agent is unable or unwilling to act as such
or is removed by the Company, the Company will promptly appoint as a
replacement Calculation Agent the London office of a leading bank which is
engaged in transactions in Eurodollar deposits in the international Eurodollar
market and which does not control or is not controlled by or under common control
with the Company or its Affiliates.  The
Calculation Agent may not resign its duties without a successor having been
duly appointed.

 

(b)  The Calculation Agent shall be required to
agree that, as soon as possible after 11:00 a.m. (London time) on each LIBOR
Determination Date (as defined in Schedule A), but in no event later
than 11:00 a.m. (London time) on the Business Day immediately following each
LIBOR Determination Date, the Calculation Agent will calculate the interest
rate (the Interest Payment shall be rounded to the nearest cent, with half a
cent being rounded upwards) for the related Interest Payment Date, and will
communicate such rate and amount to the Company, the Trustee, each Paying Agent
and the Depositary. The Calculation Agent will also specify to the Company the
quotations upon which the foregoing rates and amounts are based and, in any
event, the Calculation Agent shall notify the Company before 5:00 p.m. (London
time) on each LIBOR Determination Date that either:  (i) it has determined or is in the process of determining
the foregoing rates and amounts or (ii) it has not determined and is not
in the process of determining the foregoing rates and amounts, together with
its reasons therefor.  The Calculation
Agent’s determination of the foregoing rates and amounts for any Interest
Payment Date will (in the absence of manifest error) be final and binding upon
all parties.  For the sole purpose of
calculating the interest rate for the Securities, “Business Day” shall be
defined as any day on which dealings in deposits in Dollars are transacted in
the London interbank market.

 

SECTION
10.5.  Additional Tax Sums.

 

So long as no Event of
Default has occurred and is continuing, if (a) the Trust is the Holder of all
of the Outstanding Securities and (b) a Tax Event described in clause (i) or
(iii) in the definition of Tax Event in Section 1.1 hereof has occurred
and is continuing, the Company shall pay to the Trust (and its permitted
successors or assigns under the related Trust Agreement) for so long as the
Trust (or its permitted successor or assignee) is the registered holder of the
Outstanding Securities, such amounts as may be necessary in order that the
amount of Distributions (including any Additional Interest Amount (as defined
in the Trust Agreement)) then due and payable by the Trust on the Preferred
Securities and Common Securities that at any time remain outstanding in
accordance with the terms thereof shall not be reduced as a result of any
Additional Taxes arising from such Tax Event (additional such amounts payable
by the Company to the Trust, the “Additional Tax Sums”). Whenever in this Indenture
or the Securities there is a reference in any context to the payment of
principal of or interest on the Securities, such mention shall be deemed to
include mention of the payments of the Additional Tax Sums provided for in this
Section 10.5 to the extent that, in such context, Additional Tax Sums
are,

 

54

 

were or would be payable
in respect thereof pursuant to the provisions of this Section 10.5 and
express mention of the payment of Additional Tax Sums (if applicable) in any
provisions hereof shall not be construed as excluding Additional Tax Sums in
those provisions hereof where such express mention is not made; provided,
that the deferral of the payment of interest pursuant to Section 3.9 on
the Securities shall not defer the payment of any Additional Tax Sums that may
be due and payable.

 

SECTION
10.6.  Additional Covenants.

 

(a)  The Company covenants and agrees with each
Holder of Securities that if an Event of Default shall have occurred and be
continuing or the Company shall have given notice of its election to begin an
Extension Period with respect to the Securities and shall not have rescinded
such notice, or such Extension Period, or any extension thereof, shall be
continuing, it shall not (i) declare or pay any dividends or distributions on,
or redeem purchase, acquire or make a liquidation payment with respect to, any
shares of the Company’s capital stock, or (ii) make any payment of principal of
or any interest or premium on or repay, repurchase or redeem any debt
securities of the Company that rank pari passu in all respects with
or junior in interest to the Securities (other than (A) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of any 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 Company (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 an exchange or
conversion of any class or series of the Company’s capital stock (or any
capital stock of a Subsidiary of the Company) for any class or series of the
Company’s capital stock or of any class or series of the Company’s indebtedness
for any class or series of the Company’s capital stock, (C) the purchase of
fractional interests in shares of the Company’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 Rights Plan, the issuance of rights, stock or other property under any
Rights Plan or the redemption or repurchase of rights pursuant thereto, or (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).

 

(b)  The Company also covenants with each Holder
of Securities (i) to hold, directly or indirectly, one hundred percent (100%)
of the Common Securities of the Trust, provided,  that any permitted successor of
the Company hereunder may succeed to the Company’s ownership of such Common
Securities, (ii) as holder of such Common Securities, not to voluntarily
dissolve, wind-up or liquidate the Trust other than (A) in connection with a
distribution of the Securities to the holders of the Preferred Securities in
liquidation of the Trust or (B) in connection with certain mergers,
consolidations or amalgamations permitted by the Trust Agreement and (iii) to
use its reasonable commercial efforts, consistent with the terms and provisions
of the Trust Agreement, to cause the Trust to continue to be taxable as a
grantor trust and not as a corporation for United States Federal income tax
purposes.

 

55

 

SECTION
10.7.  Waiver of Covenants.

 

The Company may omit in
any particular instance to comply with any covenant or condition contained in Section
10.6 if, before or after the time for such compliance, the Holders of at
least a majority in aggregate principal amount of the Outstanding Securities
shall, by Act of such Holders, and at least a majority of the aggregate
Liquidation Amount (as defined in the Trust Agreement) of the Preferred
Securities then outstanding, by consent of such holders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Company in respect of any such
covenant or condition shall remain in full force and effect.

 

SECTION
10.8.  Treatment of Securities.

 

The Company will treat
the Securities as indebtedness, and the amounts, other than payments of
principal, payable in respect of the principal amount of such Securities as
interest, for all U.S. federal income tax purposes.  All payments in respect of the Securities will be made free and
clear of U.S. withholding tax to any beneficial owner thereof that has provided
an Internal Revenue Service Form W-8BEN (or any substitute or successor form)
establishing its non-U.S. status for U.S. federal income tax purposes.

 

ARTICLE XI

 

Redemption
of Securities

 

SECTION
11.1.  Optional Redemption.

 

The Company may, at its option, on any Interest
Payment Date, on or after March 30, 2008, redeem the Securities in whole at any
time or in part from time to time, at a Redemption Price equal to one hundred
percent (100%) of the principal amount thereof (or of the redeemed portion thereof,
as applicable), together, in the case of any such redemption, with accrued
interest, including any Additional Interest, to but excluding the date fixed
for redemption; provided,
that the Company shall have received the prior approval of the Federal Reserve
Board with respect to such redemption if then required.

 

SECTION
11.2.  Special Event
Redemption.

 

Upon the occurrence and
during the continuation of a Special Event, the Company may, at its option,
redeem the Securities, in whole but not in part, at a Redemption Price equal to
one hundred percent (100%) of the principal amount thereof, together, in the
case of any such redemption, with accrued interest, including any Additional
Interest, to but excluding the date fixed for redemption; provided,
that the Company shall have received the prior approval of the Federal Reserve
Board with respect to such redemption if then required.

 

SECTION
11.3.  Election to Redeem; Notice to Trustee.

 

The election of the
Company to redeem any Securities, in whole or in part, shall be evidenced by or
pursuant to a Board Resolution.  In case
of any redemption at the election of the Company, the Company shall, not less
than forty five (45) days and not more than seventy five

 

56

 

(75) days prior to the
Redemption Date (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee and the Property Trustee under the Trust Agreement in
writing of such date and of the principal amount of the Securities to be redeemed
and provide the additional information required to be included in the notice or
notices contemplated by Section 11.5. In the case of any redemption of
Securities, in whole or in part, (a) prior to the expiration of any restriction
on such redemption provided in this Indenture or the Securities or (b) pursuant
to an election of the Company which is subject to a condition specified in this
Indenture or the Securities, the Company shall furnish the Trustee with an
Officers’ Certificate and an Opinion of Counsel evidencing compliance with such
restriction or condition.

 

SECTION
11.4.  Selection of Securities to be Redeemed.

 

(a)  If less than all the Securities are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than sixty (60) days prior to the Redemption Date by the Trustee from the
Outstanding Securities not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of a portion of the principal amount of any or each
Security, provided,
that the unredeemed portion of the principal amount of any Security shall be in
an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.

 

(b)  The Trustee shall promptly notify the
Company in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security that has been or
is to be redeemed.

 

(c)  The provisions of paragraphs (a) and (b) of
this Section 11.4 shall not apply with respect to any redemption
affecting only a single Security, whether such Security is to be redeemed in
whole or in part. In the case of any such redemption in part, the unredeemed
portion of the principal amount of the Security shall be in an authorized
denomination (which shall not be less than the minimum authorized denomination)
for such Security.

 

SECTION
11.5.  Notice of Redemption.

 

(a)  Notice of redemption shall be given not
later than the thirtieth (30th) day, and not earlier than the
sixtieth (60th) day, prior to the Redemption Date to each Holder of
Securities to be redeemed, in whole or in part, (unless a shorter notice shall
be satisfactory to the Property Trustee under the related Trust Agreement).

 

(b)  With respect to Securities to be redeemed,
in whole or in part, each notice of redemption shall state:

 

(i)  the
Redemption Date;

 

(ii)  the
Redemption Price or, if the Redemption Price cannot be calculated prior to the
time the notice is required to be sent, the estimate of the Redemption Price,
as calculated by the Company, together with a statement that it is an estimate
and that the

 

57

 

actual Redemption Price will be calculated on the
fifth Business Day prior to the Redemption Date (and if an estimate is
provided, a further notice shall be sent of the actual Redemption Price on the
date that such Redemption Price is calculated);

 

(iii)  if less
than all Outstanding Securities are to be redeemed, the identification (and, in
the case of partial redemption, the respective principal amounts) of the
particular Securities to be redeemed;

 

(iv)  that on
the Redemption Date, the Redemption Price will become due and payable upon each
such Security or portion thereof, and that any interest (including any
Additional Interest) on such Security or such portion, as the case may be,
shall cease to accrue on and after said date; and

 

(v)  the place
or places where such Securities are to be surrendered for payment of the
Redemption Price.

 

(c)  Notice of redemption of Securities to be
redeemed, in whole or in part, at the election of the Company shall be given by
the Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company and shall be irrevocable. The notice if mailed in the
manner provided above shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, a failure to give
such notice by mail or any defect in the notice to the Holder of any Security
designated for redemption as a whole or in part shall not affect the validity
of the proceedings for the redemption of any other Security.

 

SECTION
11.6.  Deposit of Redemption Price.

 

Prior to 10:00 a.m., New
York City time, on the Redemption Date specified in the notice of redemption
given as provided in Section 11.5, the Company will deposit with the
Trustee or with one or more Paying Agents (or if the Company is acting as its
own Paying Agent, the Company will segregate and hold in trust as provided in Section
10.2) an amount of money sufficient to pay the Redemption Price of, and any
accrued interest (including any Additional Interest) on, all the Securities (or
portions thereof) that are to be redeemed on that date.

 

SECTION
11.7.  Payment of Securities Called for Redemption.

 

(a)  If any notice of redemption has been given
as provided in Section 11.5, the Securities or portion of Securities
with respect to which such notice has been given shall become due and payable
on the date and at the place or places stated in such notice at the applicable
Redemption Price, together with accrued interest (including any Additional
Interest) to the Redemption Date. On presentation and surrender of such
Securities at a Place of Payment specified in such notice, the Securities or
the specified portions thereof shall be paid and redeemed by the Company at the
applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date.

 

(b)  Upon presentation of any Security redeemed
in part only, the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, at the expense of the Company, a new Security or
Securities, of authorized denominations, in aggregate principal amount equal to
the unredeemed portion of the Security so presented and having the same
Original Issue Date, Stated Maturity and terms.

 

58

 

(c)  If any Security called for redemption shall
not be so paid upon surrender thereof for redemption, the principal of and any
premium on such Security shall, until paid, bear interest from the Redemption
Date at the rate prescribed therefor in the Security.

 

ARTICLE
XII

 

Subordination
of Securities

 

SECTION
12.1.  Securities Subordinate to Senior Debt.

 

The Company covenants and
agrees, and each Holder of a Security, by its acceptance thereof, likewise
covenants and agrees, that, to the extent and in the manner hereinafter set
forth in this Article XII, the payment of the principal of and any
premium and interest (including any Additional Interest) on each and all of the
Securities are hereby expressly made subordinate and subject in right of
payment to the prior payment in full of all Senior Debt.

 

SECTION
12.2.  No Payment When Senior Debt in Default;
Payment Over of Proceeds Upon Dissolution, Etc.

 

(a)  In the event and during the continuation of
any default by the Company in the payment of any principal of or any premium or
interest on any Senior Debt (following any grace period, if applicable) when
the same becomes due and payable, whether at maturity or at a date fixed for
prepayment or by declaration of acceleration or otherwise, then, upon written
notice of such default to the Company by the holders of such Senior Debt or any
trustee therefor, unless and until such default shall have been cured or waived
or shall have ceased to exist, no direct or indirect payment (in cash,
property, securities, by set-off or otherwise) shall be made or agreed to be
made on account of the principal of or any premium or interest (including any
Additional Interest) on any of the Securities, or in respect of any redemption,
repayment, retirement, purchase or other acquisition of any of the Securities.

 

(b)  In the event of a bankruptcy, insolvency or
other proceeding described in clause (d) or (e) of the definition of Event of
Default (each such event, if any, herein sometimes referred to as a “Proceeding”), all Senior Debt
(including any interest thereon accruing after the commencement of any such
proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any Holder of
any of the Securities on account thereof. Any payment or distribution, whether
in cash, securities or other property (other than securities of the Company or
any other entity provided for by a plan of reorganization or readjustment the
payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the
Securities, to the payment of all Senior Debt at the time outstanding and to
any securities issued in respect thereof under any such plan of reorganization
or readjustment), which would otherwise (but for these subordination
provisions) be payable or deliverable in respect of the Securities shall be
paid or delivered directly to the holders of Senior Debt in accordance with the
priorities then existing among such holders until all Senior Debt  (including any interest thereon accruing
after the commencement of any Proceeding) shall have been paid in full.

 

(c)  In the event of any Proceeding, after
payment in full of all sums owing with respect to Senior Debt, the Holders of
the Securities, together with the holders of any obligations of the

 

59

 

Company ranking on a parity with the Securities, shall
be entitled to be paid from the remaining assets of the Company the amounts at
the time due and owing on account of unpaid principal of and any premium and
interest (including any Additional Interest) on the Securities and such other
obligations before any payment or other distribution, whether in cash, property
or otherwise, shall be made on account of any capital stock or any obligations
of the Company ranking junior to the Securities and such other obligations. If,
notwithstanding the foregoing, any payment or distribution of any character or
any security, whether in cash, securities or other property (other than
securities of the Company or any other entity provided for by a plan of
reorganization or readjustment the payment of which is subordinate, at least to
the extent provided in these subordination provisions with respect to the
indebtedness evidenced by the Securities, to the payment of all Senior Debt at
the time outstanding and to any securities issued in respect thereof under any
such plan of reorganization or readjustment) shall be received by the Trustee
or any Holder in contravention of any of the terms hereof and before all Senior
Debt shall have been paid in full, such payment or distribution or security
shall be received in trust for the benefit of, and shall be paid over or
delivered and transferred to, the holders of the Senior Debt at the time
outstanding in accordance with the priorities then existing among such holders
for application to the payment of all Senior Debt remaining unpaid, to the
extent necessary to pay all such Senior Debt (including any interest thereon
accruing after the commencement of any Proceeding) in full. In the event of the
failure of the Trustee or any Holder to endorse or assign any such payment,
distribution or security, each holder of Senior Debt is hereby irrevocably
authorized to endorse or assign the same.

 

(d)  The Trustee and the Holders, at the expense
of the Company, shall take such reasonable action  (including the delivery of this Indenture to an agent for any
holders of Senior Debt or consent to the filing of a financing statement with
respect hereto) as may, in the opinion of counsel designated by the holders of
a majority in principal amount of the Senior Debt at the time outstanding, be
necessary or appropriate to assure the effectiveness of the subordination
effected by these provisions.

 

(e)  The provisions of this Section 12.2
shall not impair any rights, interests, remedies or powers of any secured
creditor of the Company in respect of any security interest the creation of
which is not prohibited by the provisions of this Indenture.

 

(f)  The securing of any obligations of the
Company, otherwise ranking on a parity with the Securities or ranking junior to
the Securities, shall not be deemed to prevent such obligations from
constituting, respectively, obligations ranking on a parity with the Securities
or ranking junior to the Securities.

 

SECTION
12.3.  Payment Permitted If No Default.

 

Nothing contained in this
Article XII or elsewhere in this Indenture or in any of the Securities
shall prevent (a) the Company, at any time, except during the pendency of the
conditions described in paragraph (a) of Section 12.2 or of any
Proceeding referred to in Section 12.2, from making payments at any time
of principal of and any premium or interest (including any Additional Interest)
on the Securities or (b) the application by the Trustee of any moneys deposited
with it hereunder to the payment of or on account of the principal of and any
premium or interest (including any Additional Interest) on the Securities or
the retention of such payment by the Holders, if, at the time of such
application by the Trustee, it did not have knowledge (in

 

60

 

accordance with Section
12.8) that such payment would have been prohibited by the provisions of
this Article XII, except as provided in Section 12.8.

 

SECTION
12.4.  Subrogation to Rights of Holders of Senior
Debt.

 

Subject to the payment in
full of all amounts due or to become due on all Senior Debt, or the provision
for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt, the Holders of the Securities shall
be subrogated to the extent of the payments or distributions made to the
holders of such Senior Debt pursuant to the provisions of this Article XII
(equally and ratably with the holders of all indebtedness of the Company that
by its express terms is subordinated to Senior Debt of the Company to
substantially the same extent as the Securities are subordinated to the Senior
Debt and is entitled to like rights of subrogation by reason of any payments or
distributions made to holders of such Senior Debt) to the rights of the holders
of such Senior Debt to receive payments and distributions of cash, property and
securities applicable to the Senior Debt until the principal of and any premium
and interest (including any Additional Interest) on the Securities shall be
paid in full. For purposes of such subrogation, no payments or distributions to
the holders of the Senior Debt of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article XII, and no payments made pursuant to the
provisions of this Article XII to the holders of Senior Debt by Holders
of the Securities or the Trustee, shall, as among the Company, its creditors
other than holders of Senior Debt, and the Holders of the Securities, be deemed
to be a payment or distribution by the Company to or on account of the Senior
Debt.

 

SECTION
12.5.  Provisions Solely to Define Relative Rights.

 

The provisions of this Article
XII are and are intended solely for the purpose of defining the relative
rights of the Holders of the Securities on the one hand and the holders of
Senior Debt on the other hand. Nothing contained in this Article XII or
elsewhere in this Indenture or in the Securities is intended to or shall (a)
impair, as between the Company and the Holders of the Securities, the
obligations of the Company, which are absolute and unconditional, to pay to the
Holders of the Securities the principal of and any premium and interest
(including any Additional Interest) on the Securities as and when the same
shall become due and payable in accordance with their terms, (b) affect the
relative rights against the Company of the Holders of the Securities and
creditors of the Company other than their rights in relation to the holders of
Senior Debt or (c) prevent the Trustee or the Holder of any Security (or to the
extent expressly provided herein, the holder of any Preferred Security) from
exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, including filing and voting claims in any Proceeding,
subject to the rights, if any, under this Article XII of the holders of
Senior Debt to receive cash, property and securities otherwise payable or
deliverable to the Trustee or such Holder.

 

SECTION
12.6.  Trustee to Effectuate Subordination.

 

Each Holder of a Security
by his or her acceptance thereof authorizes and directs the Trustee on his or
her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination provided in this Article XII
and appoints the Trustee his or her attorney-in-fact for any and all such
purposes.

 

61

 

SECTION
12.7.  No Waiver of Subordination Provisions.

 

(a)  No right of any present or future holder of
any Senior Debt to enforce subordination as herein provided shall at any time
in any way be prejudiced or impaired by any act or failure to act on the part
of the Company or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Company with the terms, provisions and
covenants of this Indenture, regardless of any knowledge thereof that any such
holder may have or be otherwise charged with.

 

(b)  Without in any way limiting the generality
of paragraph (a) of this Section 12.7, the holders of Senior Debt may,
at any time and from to time, without the consent of or notice to the Trustee
or the Holders of the Securities, without incurring responsibility to such
Holders of the Securities and without impairing or releasing the subordination
provided in this Article XII or the obligations hereunder of such
Holders of the Securities to the holders of Senior Debt, do any one or more of
the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Debt, or otherwise amend or
supplement in any manner Senior Debt or any instrument evidencing the same or
any agreement under which Senior Debt is outstanding, (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Debt, (iii) release any Person liable in any manner for the
payment of Senior Debt and (iv) exercise or refrain from exercising any rights
against the Company and any other Person.

 

SECTION
12.8.  Notice to Trustee.

 

(a)  The Company shall give prompt written notice
to a Responsible Officer of the Trustee of any fact known to the Company that
would prohibit the making of any payment to or by the Trustee in respect of the
Securities. Notwithstanding the provisions of this Article XII or any
other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment to or by the Trustee in respect of the Securities, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder of Senior Debt or from any trustee, agent or
representative therefor; provided,
that if the Trustee shall not have received the notice provided for in
this Section 12.8 at least two Business Days prior to the date upon
which by the terms hereof any monies may become payable for any purpose
(including, the payment of the principal of and any premium on or interest
(including any Additional Interest) on any Security), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such monies and to apply the same to the purpose for which
they were received and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to such date.

 

(b)  The Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself or herself
to be a holder of Senior Debt (or a trustee, agent, representative or
attorney-in-fact therefor) to establish that such notice has been given by a
holder of Senior Debt (or a trustee, agent, representative or attorney-in-fact
therefor). In the event that the Trustee determines in good faith that further
evidence is required with respect to the right of any Person as a holder of
Senior Debt to participate in any payment or distribution pursuant to this Article
XII, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt held by
such Person, the

 

62

 

extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article XII, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

 

SECTION
12.9.  Reliance on Judicial Order or Certificate of
Liquidating Agent.

 

Upon any payment or
distribution of assets of the Company referred to in this Article XII,
the Trustee and the Holders of the Securities shall be entitled to conclusively
rely upon any order or decree entered by any court of competent jurisdiction in
which such Proceeding is pending, or a certificate of the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee for the benefit of
creditors, agent or other Person making such payment or distribution, delivered
to the Trustee or to the Holders of Securities, for the purpose of ascertaining
the Persons entitled to participate in such payment or distribution, the
holders of the Senior Debt and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article XII.

 

SECTION
12.10.  Trustee Not Fiduciary for Holders of Senior
Debt.

 

The Trustee, in its
capacity as trustee under this Indenture, shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and shall not be liable to any
such holders if it shall in good faith mistakenly pay over or distribute to
Holders of Securities or to the Company or to any other Person cash, property
or securities to which any holders of Senior Debt shall be entitled by virtue
of this Article XII or otherwise.

 

SECTION
12.11.  Rights of Trustee as Holder of Senior Debt;
Preservation of Trustee’s Rights.

 

The Trustee in its
individual capacity shall be entitled to all the rights set forth in this Article
XII with respect to any Senior Debt that may at any time be held by it, to
the same extent as any other holder of Senior Debt, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

 

SECTION
12.12.  Article Applicable to Paying Agents.

 

If at any time any Paying
Agent other than the Trustee shall have been appointed by the Company and be
then acting hereunder, the term “Trustee”
as used in this Article XII shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article XII in addition to or in place
of the Trustee; provided,  that Sections
12.8 and 12.11 shall not apply to the Company or any Affiliate of
the Company if the Company or such Affiliate acts as Paying Agent.

 

* * * *

 

63

 

This instrument may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed as of the day and
year first above written.

 

	
   

  	
  PACIFIC CREST CAPITAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 
  Robert J. Dennen

  
	
   

  	
   

  	
  Title: 
  Senior Vice President and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, not in its individual

  capacity, but solely as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

64

 

Schedule A

 

DETERMINATION
OF LIBOR

 

With respect
to the Securities, the London interbank offered rate (“LIBOR”) shall be determined
by the Calculation Agent in accordance with the following provisions (in each
case rounded to the nearest .000001%):

 

(1)                                  On
the second LIBOR Business Day (as defined below) prior to an Interest Payment
Date (except with respect to the first interest payment period, such date shall
be March 18, 2003)  (each such day, a “LIBOR Determination Date”),
LIBOR for any given security shall for the following interest payment period
equal the rate, as obtained by the Calculation Agent from Bloomberg Financial
Markets Commodities News, for three-month Eurodollar deposits that appears on
Dow Jones Telerate Page 3750 (as defined in the International Swaps and
Derivatives Association, Inc. 1991 Interest Rate and Currency Exchange
Definitions), or such other page as may replace such Page 3750, as of 11:00
a.m. (London time) on such LIBOR Determination Date.

 

(2)                                  If,
on any LIBOR Determination Date, such rate does not appear on Dow Jones
Telerate Page 3750 or such other page as may replace such Page 3750, the
Calculation Agent shall determine the arithmetic mean of the offered quotations
of the Reference Banks (as defined below) to leading banks in the London
interbank market for three-month Eurodollar deposits in an amount determined by
the Calculation Agent by reference to requests for quotations as of
approximately 11:00 a.m. (London time) on the LIBOR Determination Date made by
the Calculation Agent to the Reference Banks. 
If, on any LIBOR Determination Date, at least two of the Reference Banks
provide such quotations, LIBOR shall equal such arithmetic mean of such
quotations.  If, on any LIBOR
Determination Date, only one or none of the Reference Banks provide such
quotations, LIBOR shall be deemed to be the arithmetic mean of the offered
quotations that leading banks in the City of New York selected by the
Calculation Agent are quoting on the relevant LIBOR Determination Date for
three-month Eurodollar deposits in an amount determined by the Calculation
Agent by reference to the principal London offices of leading banks in the
London interbank market; provided that, if the Calculation Agent is
required but is unable to determine a rate in accordance with at least one of
the procedures provided above, LIBOR shall be LIBOR as determined on the
previous LIBOR Determination Date.

 

(3)                                  As
used herein: “Reference Banks” means four major banks in the London
interbank market selected by the Calculation Agent; and “LIBOR Business Day” means a
day on which commercial banks are open for business (including dealings in
foreign exchange and foreign currency deposits) in London.

 

A-1

 

Exhibit A

 

Officer’s
Certificate

 

The undersigned, the [Chief Financial Officer] [Treasurer] [Executive
Vice President] hereby certifies, pursuant to Section 7.3(b) of the Junior
Subordinated Indenture, dated as of March [20], 2003, among Pacific Crest
Capital, Inc. (the “Company”) and The Bank of New York, as trustee,  that, as of [date], [20   ],
the Company had the following ratios and balances:

 

BANK HOLDING COMPANY

As of [Quarterly Financial Dates], 20   

 

	
  Tier 1 Risk Weighted Assets

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of Double Leverage

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Non-Performing Assets to Loans and OREO

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Tangible Common Equity as a Percentage of
  Tangible Assets

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of Reserves to Non-Performing Loans

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of Net Charge-Offs to Loans

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Return on Average Assets (annualized)

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Net Interest Margin (annualized)

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Efficiency Ratio

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of Loans to Assets

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ratio of Loans to Deposits

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Double Leverage (exclude trust preferred as
  equity)

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Assets

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Year to Date Income

  	
   

  	
  $

  	
   

  	
   

  

 

•                  A
table describing the quarterly report calculation procedures is provided on
page    

 

Attached hereto are the [audited] [unaudited] consolidated and
consolidating financial statements (including the balance sheet, income
statement and, for year-end statements, notes thereto) of the Company and its
consolidated subsidiaries for the [fiscal year] [fiscal quarter] ended [date],
20   , which financial statements fairly present in all material
respects, in accordance with U.S. generally accepted accounting principles
(“GAAP”), the financial position of the Company and its consolidated
subsidiaries, and the results of operations and changes in financial condition
as of the date, and for the [       quarter
interim] [annual] period ended [date], 20   , and such financial
statements have been prepared in accordance with GAAP consistently applied
throughout the period involved (expect as otherwise noted therein).

 

B-1

 

IN WITNESS WHEREOF, the undersigned has executed this Officer’s
Certificate as of this          
day of
                             ,
20   

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Pacific Crest Capital, Inc.

  
	
   

  	
  30343 Canwood Street

  
	
   

  	
  Agoura Hills, CA 91301

  
	
   

  	
  (818) 865-3225

  

 

B-2

 

Exhibit B

 

Financial
Definitions

 

BANK HOLDING
COMPANY

 

	
  Report
  Item

  	
   

  	
  Corresponding
  FRY-9C or LP Line Items with Line

  Item corresponding Schedules

  	
   

  	
  Description
  of Calculation

  
	
  Tier 1
  Risk Weighted Assets

  	
   

  	
  BHCK7206

  Schedule HC-R

  	
   

  	
  Tier 1 Risk Ratio: Core Capital (Tier 1)/ Risk-Adjusted Assets

  
	
  Ratio of
  Double Leverage

  	
   

  	
  (BHCP0365)/(BCHCP3210)

  Schedule PC in the LP

  	
   

  	
  Total equity investments in subsidiaries divided by the total equity
  capital. This field is calculated at the parent company level. “Subsidiaries”
  include bank, bank holding company, and non-bank subsidiaries.

  
	
  Non-Performing
  Assets to Loans and OREO

  	
   

  	
  (BHCK5525-BHCK3506+BHCK5526-

  BHCK3507+BHCK2744)/(BHCK2122+BHCK2744)

  Schedules HC-C, HC-M & HC-N

  	
   

  	
  Total Nonperforming Assets (NPLs+Foreclosed Real Estate+Other
  Nonaccrual & Repossessed Assets)/Total Loans+Foreclosed Real Estate

  
	
  Tangible
  Common Equity as a Percentage of Tangible Assets

  	
   

  	
  (BHDM3210-BHCK3163)/(BHCK2170-

  BHCK3163)

  Schedule HC

  	
   

  	
  (Equity Capital – Goodwill)/(Total Assets – Goodwill)

  
	
  Ratio of
  Reserves to Non-Performing Loans

  	
   

  	
  (BHCK3123+BHCK3128)/(BHCK5525-

  BHCK3506+BHCK5526-BHCK3507)  

  Schedules HC & HC-N & HC-R

  	
   

  	
  Total Loan Loss and Allocated Transfer Risk Reserves/ Total
  Nonperforming Loans (Nonaccrual + Restructured)

  
	
  Ratio of
  Net Charge-Offs to Loans

  	
   

  	
  (BHCK4635-BHCK4605)/(BHCK3516)

  Schedules HC-B & HC-K

  	
   

  	
  Net charge offs for the period as a percentage of average loans.

  
	
  Return on
  Average Assets (annualized)

  	
   

  	
  (BHCK4340/BHCK3368)

  Schedules HI & HC-K

  	
   

  	
  Net Income as a percentage of Assets.

  
	
  Net
  Interest Margin (annualized)

  	
   

  	
  (BHCK4519)/(BHCK3515+BHCK3365+BH

  CK3516+BHCK3401+BHCKB985)

  Schedules HI Memorandum and HC-K

  	
   

  	
  (Net Interest Income Fully Taxable Equivalent, if available/Average
  Earning Assets)

  
	
  Efficiency Ratio

  	
   

  	
  (BHCK4093)/(BHCK4519+BHCK4079)

  Schedule HI

  	
   

  	
  (Non-interest Expense)/(Net Interest Income Fully Taxable Equivalent,
  if available, plus Non-interest Income)

  
	
  Ratio of
  Loans to Assets

  	
   

  	
  (BHCKB528+BHCK5369)/(BHCK2170)

  Schedule HC

  	
   

  	
  Total Loans & Leases (Net of Unearned Income & Gross of
  Reserve)/Total Assets

  
	
  Ratio of
  Loans to Deposits

  	
   

  	
  (BHCKB528+BHCK5369)/(BHDM6631+BH

  DM6636+BHFN6631+BHFN6636)

  Schedule HC

  	
   

  	
  Total Loans & Leases (Net of Unearned Income & Gross of
  Reserve)/Total Deposits (Includes Domestic and Foreign Deposits)

  

 

B-1

 

	
  Total Assets

  	
   

  	
  (BHCK2170)

  Schedule HC

  	
   

  	
  The sum of total assets. Includes cash and balances due from
  depository institutions; securities; federal funds sold and securities
  purchased under agreements to resell; loans and lease financing receivables;
  trading assets; premises and fixed assets; other real estate owned;
  investments in unconsolidated subsidiaries and associated companies;
  customer’s liability on acceptances outstanding; intangible assets; and other
  assets.

  
	
  Net Income

  	
   

  	
  (BHCK4300)

  Schedule HI

  	
   

  	
  The sum of income (loss)before extraordinary items and other
  adjustments and extraordinary items; and other adjustments, net of income
  taxes.

  

 

B-2

 

Financial
Definitions

 

THRIFT HOLDING
COMPANY

 

	
  Report Item

  	
   

  	
  Corresponding
  TFR

  	
   

  	
  Description
  of Calculation

  
	
  Tier I Risk Weighted Assets  -

  	
   

  	
  Schedule CCR – Consolidated Capital Requirement

  CCR 830

  	
   

  	
  Tier 1 Risk Ratio: Core Capital (Tier 1)/Risk-adjusted assets

  
	
  Ratio of Double Leverage

  	
   

  	
  Not applicable

  	
   

  	
  Not applicable

  
	
  Non-performing assets to loans and OREO

  	
   

  	
  Schedule PD – Consolidated Past Due and Nonaccrual

  Schedule SC – Consolidated Statement of Condition

  PD30/(SC23+SC30+SC34+SC40)

  	
   

  	
  Total Non-performing assets (NPLs + Foreclosed Real Estate+Other
  Non-accrual & Repossessed assets+Foreclosed Real Estate)

  
	
  Tangible Common Equity as a Percentage of
  Total Assets

  	
   

  	
  Schedule CCR

  CCR 840

  	
   

  	
  (Equity Capital-Goodwill) / (Total assets – Goodwill)

  
	
  Ratio of Reserves to Non-performing loans

  	
   

  	
  SC283/PD30

  	
   

  	
  Total loan loss reserves / Total Non-performing loans

  
	
  Ratio of Net Charge-offs to Loans

  	
   

  	
  Schedule VA – Consolidated Valuation Allowances and

  Related Data

  (VA155-VA135)/(SC23+SC30+SC34)

  	
   

  	
  Net charge offs for the period as a percentage of average loans

  
	
  Return on Assets (annualized)

  	
   

  	
  Schedule SO – Consolidated Statements of Operations

  SO91/SC60

  	
   

  	
  Net income as a percentage of assets

  
	
  Net interest margin (annualized)

  	
   

  	
  SO311/((SC10-SC110)+SC20+SC23+SC30+SC34)

  	
   

  	
  Net interest income / Average earning assets

  
	
  Efficiency Ratio

  	
   

  	
  (SO51/(SO311+SO40))

  	
   

  	
  (Non-interest expense) / (Net interest income + Non-interest income)

  
	
  Ratio of Loans to Assets

  	
   

  	
  (SC23+SC30+SC34)/(SC60)

  	
   

  	
  Total Loan & Leases / Total assets

  
	
  Ratio of Loans to Deposits

  	
   

  	
  (SC23+SC30+SC34)/(SC710)

  	
   

  	
  Total Loans & Leases / Total Deposits

  
	
  Total Assets

  	
   

  	
  Schedule SC

  SC60

  	
   

  	
  The sum of total assets.

  
	
  Net Income

  	
   

  	
  Schedule SO

  SO91

  	
   

  	
  The sum of income (loss).

  

 

B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]