Document:

Exhibit 10.2

 

 

 

364-DAY

CREDIT AGREEMENT

 

among

 

IMS HEALTH
INCORPORATED,

as Company,

 

THE LENDERS
PARTIES HERETO,

 

WACHOVIA BANK,
NATIONAL ASSOCIATION,

as Administrative Agent,

 

BARCLAYS BANK PLC
AND ABN AMRO BANK N.V.,

as Co-Syndication Agents,

 

and

 

SUNTRUST BANK AND
FORTIS CAPITAL CORP.,

as Co-Documentation Agents

 

Dated as of April
5, 2004

 

 

WACHOVIA CAPITAL
MARKETS, LLC,

as Lead Arranger and Sole Book Runner

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I  DEFINITIONS AND OTHER PROVISIONS

  	
   

  
	
   

  	
   

  	
  Section 1.1

  	
   

  	
  Defined Terms.

  	
   

  
	
   

  	
   

  	
  Section 1.2

  	
   

  	
  Other
  Definitional Provisions.

  	
   

  
	
   

  	
   

  	
  Section 1.3

  	
   

  	
  Accounting Terms.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II  THE LOANS; AMOUNT AND TERMS

  	
   

  
	
   

  	
   

  	
  Section 2.1

  	
   

  	
  Revolving Loans.

  	
   

  
	
   

  	
   

  	
  Section
  2.2

  	
   

  	
  Fees.

  	
   

  
	
   

  	
   

  	
  Section 2.3

  	
   

  	
  Commitment
  Reductions.

  	
   

  
	
   

  	
   

  	
  Section 2.4

  	
   

  	
  Prepayments.

  	
   

  
	
   

  	
   

  	
  Section
  2.5

  	
   

  	
  Minimum
  Principal Amount of Tranches.

  	
   

  
	
   

  	
   

  	
  Section 2.6

  	
   

  	
  Default Rate.

  	
   

  
	
   

  	
   

  	
  Section 2.7

  	
   

  	
  Conversion Options.

  	
   

  
	
   

  	
   

  	
  Section
  2.8

  	
   

  	
  Computation
  of Interest and Fees.

  	
   

  
	
   

  	
   

  	
  Section
  2.9

  	
   

  	
  Computations,
  Pro Rata Treatment and Payments.

  	
   

  
	
   

  	
   

  	
  Section
  2.10

  	
   

  	
  Non–Receipt
  of Funds by the Administrative Agent.

  	
   

  
	
   

  	
   

  	
  Section
  2.11

  	
   

  	
  Inability
  to Determine Interest Rate.

  	
   

  
	
   

  	
   

  	
  Section 2.12

  	
   

  	
  Illegality.

  	
   

  
	
   

  	
   

  	
  Section
  2.13

  	
   

  	
  Deposits
  Unavailable; Impractibility.

  	
   

  
	
   

  	
   

  	
  Section 2.14

  	
   

  	
  Increased Cost.

  	
   

  
	
   

  	
   

  	
  Section 2.15

  	
   

  	
  Increased Capital
  Costs.

  	
   

  
	
   

  	
   

  	
  Section 2.16

  	
   

  	
  Funding Losses.

  	
   

  
	
   

  	
   

  	
  Section
  2.17

  	
   

  	
  Taxes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
  Section 3.1

  	
   

  	
  Existence.

  	
   

  
	
   

  	
   

  	
  Section
  3.2

  	
   

  	
  Power
  and Authorization; Enforceable Obligations.

  	
   

  
	
   

  	
   

  	
  Section 3.3

  	
   

  	
  No Legal Bar to
  Loans.

  	
   

  
	
   

  	
   

  	
  Section
  3.4

  	
   

  	
  Financial
  Information; Disclosure, etc.

  	
   

  
	
   

  	
   

  	
  Section 3.5

  	
   

  	
  Licenses, Permits,
  etc.

  	
   

  
	
   

  	
   

  	
  Section 3.6

  	
   

  	
  Tax Returns and
  Payments.

  	
   

  
	
   

  	
   

  	
  Section 3.7

  	
   

  	
  Title to
  Properties; Liens.

  	
   

  
	
   

  	
   

  	
  Section 3.8

  	
   

  	
  Litigation, etc.

  	
   

  
	
   

  	
   

  	
  Section 3.9

  	
   

  	
  No Default.

  	
   

  
	
   

  	
   

  	
  Section
  3.10

  	
   

  	
  Governmental
  and Other Consents.

  	
   

  
	
   

  	
   

  	
  Section 3.11

  	
   

  	
  Regulation U, etc.

  	
   

  
	
   

  	
   

  	
  Section
  3.12

  	
   

  	
  Investment
  Company Act; Other Regulations.

  	
   

  
	
   

  	
   

  	
  Section 3.13

  	
   

  	
  Compliance with
  ERISA.

  	
   

  
	
   

  	
   

  	
  Section 3.14

  	
   

  	
  Environmental
  Matters.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
  Section
  4.1

  	
   

  	
  Conditions
  to Closing Date and Initial Revolving Loans.

  	
   

  
	
   

  	
   

  	
  Section
  4.2

  	
   

  	
  Conditions
  to All Extensions of Credit.

  	
   

  

 

i

 

	
  ARTICLE V  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
  Section 5.1

  	
   

  	
  Financial
  Information.

  	
   

  
	
   

  	
   

  	
  Section 5.2

  	
   

  	
  Use of Proceeds.

  	
   

  
	
   

  	
   

  	
  Section
  5.3

  	
   

  	
  Payment of
  Borrower Obligations.

  	
   

  
	
   

  	
   

  	
  Section
  5.4

  	
   

  	
  Conduct
  of Business and Maintenance of Existence.

  	
   

  
	
   

  	
   

  	
  Section 5.5

  	
   

  	
  Insurance.

  	
   

  
	
   

  	
   

  	
  Section 5.6

  	
   

  	
  Books and Records.

  	
   

  
	
   

  	
   

  	
  Section 5.7

  	
   

  	
  Notices.

  	
   

  
	
   

  	
   

  	
  Section 5.8

  	
   

  	
  Payment of Taxes.

  	
   

  
	
   

  	
   

  	
  Section 5.9

  	
   

  	
  Further Assurances.

  	
   

  
	
   

  	
   

  	
  Section 5.10

  	
   

  	
  No Dividend
  Restrictions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
  Section 6.1

  	
   

  	
  Limitation on Liens.

  	
   

  
	
   

  	
   

  	
  Section 6.2

  	
   

  	
  Dissolutions and
  Mergers.

  	
   

  
	
   

  	
   

  	
  Section 6.3

  	
   

  	
  Disposition of
  Assets.

  	
   

  
	
   

  	
   

  	
  Section 6.4

  	
   

  	
  Conduct of Business.

  	
   

  
	
   

  	
   

  	
  Section
  6.5

  	
   

  	
  Compliance
  with Federal Reserve Regulations.

  	
   

  
	
   

  	
   

  	
  Section 6.6

  	
   

  	
  Financial Covenants.

  	
   

  
	
   

  	
   

  	
  Section 6.7

  	
   

  	
  Subsidiary
  Indebtedness.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
  Section 7.1

  	
   

  	
  Events of Default.

  	
   

  
	
   

  	
   

  	
  Section 7.2

  	
   

  	
  Acceleration;
  Remedies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII  THE ADMINISTRATIVE AGENT

  	
   

  
	
   

  	
   

  	
  Section 8.1

  	
   

  	
  Appointment.

  	
   

  
	
   

  	
   

  	
  Section 8.2

  	
   

  	
  Delegation of Duties.

  	
   

  
	
   

  	
   

  	
  Section 8.3

  	
   

  	
  Exculpatory
  Provisions.

  	
   

  
	
   

  	
   

  	
  Section
  8.4

  	
   

  	
  Reliance
  by the Administrative Agent.

  	
   

  
	
   

  	
   

  	
  Section 8.5

  	
   

  	
  Notice of Default.

  	
   

  
	
   

  	
   

  	
  Section
  8.6

  	
   

  	
  Non-Reliance
  on the Administrative Agent and Other Lenders.

  	
   

  
	
   

  	
   

  	
  Section 8.7

  	
   

  	
  Indemnification.

  	
   

  
	
   

  	
   

  	
  Section
  8.8

  	
   

  	
  Administrative
  Agent in its Individual Capacity.

  	
   

  
	
   

  	
   

  	
  Section 8.9

  	
   

  	
  Successor
  Administrative Agent.

  	
   

  
	
   

  	
   

  	
  Section 8.10

  	
   

  	
  Nature of Duties.

  	
   

  
	
   

  	
   

  	
  Section 8.11

  	
   

  	
  Other Agents;
  Arrangers.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
  Section 9.1

  	
   

  	
  Amendments and
  Waivers.

  	
   

  
	
   

  	
   

  	
  Section 9.2

  	
   

  	
  Notices.

  	
   

  
	
   

  	
   

  	
  Section 9.3

  	
   

  	
  No Waiver;
  Cumulative Remedies.

  	
   

  
	
   

  	
   

  	
  Section 9.4

  	
   

  	
  Payment of
  Expenses and Taxes.

  	
   

  
	
   

  	
   

  	
  Section
  9.5

  	
   

  	
  Successors
  and Assigns; Participations; Purchasing Lenders.

  	
   

  
	
   

  	
   

  	
  Section 9.6

  	
   

  	
  Adjustments; Set-off.

  	
   

  
	
   

  	
   

  	
  Section
  9.7

  	
   

  	
  Table
  of Contents and Section Headings.

  	
   

  
	
   

  	
   

  	
  Section 9.8

  	
   

  	
  Counterparts.

  	
   

  
	
   

  	
   

  	
  Section 9.9

  	
   

  	
  Effectiveness.

  	
   

  
	
   

  	
   

  	
  Section 9.10

  	
   

  	
  Severability.

  	
   

  
	
   

  	
   

  	
  Section 9.11

  	
   

  	
  Integration.

  	
   

  

 

ii

 

	
   

  	
   

  	
  Section 9.12

  	
   

  	
  Governing Law.

  	
   

  
	
   

  	
   

  	
  Section
  9.13

  	
   

  	
  Consent
  to Jurisdiction and Service of Process.

  	
   

  
	
   

  	
   

  	
  Section 9.14

  	
   

  	
  Confidentiality.

  	
   

  
	
   

  	
   

  	
  Section 9.15

  	
   

  	
  Acknowledgments.

  	
   

  
	
   

  	
   

  	
  Section 9.16

  	
   

  	
  Waivers of Jury
  Trial.

  	
   

  
	
   

  	
   

  	
  Section 9.17

  	
   

  	
  USA Patriot Act
  Notice.

  	
   

  

 

iii

 

	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule 1.1

  	
  Account Designation
  Letter

  
	
  Schedule 2.1(a)

  	
  Schedule of Lenders and
  Revolving Commitments

  
	
  Schedule 2.1(b)(i)

  	
  Form of Notice of Borrowing

  
	
  Schedule 2.1(e)

  	
  Form of Revolving Note

  
	
  Schedule 2.9

  	
  Form of Notice of
  Conversion/Extension

  
	
  Schedule 4.1(b)

  	
  Form of Secretary’s
  Certificate

  
	
  Schedule 4.1(f)

  	
  Form of Solvency
  Certificate

  
	
  Schedule 9.2

  	
  Schedule of Lenders’
  Lending Offices

  
	
  Schedule 9.6(c)

  	
  Form of Revolving
  Commitment Transfer Supplement

  

 

iv

 

This 364-DAY CREDIT AGREEMENT (the
“Credit Agreement”), dated as of April 5, 2004, is by and among IMS HEALTH
INCORPORATED,  a Delaware corporation (the “Company”),
the several banks and other financial institutions as may from time to time
become parties to this Credit Agreement (collectively, the “Lenders”;
and individually, a “Lender”), and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association, as administrative agent for the Lenders hereunder
(in such capacity, the “Administrative Agent”).

 

W I T N E S S E T
H:

 

WHEREAS, the
Company has requested that the Lenders make loans and other financial
accommodations to the Company in the amount of up to $430,000,000, as more
particularly described herein;

 

WHEREAS, the
Lenders have agreed to make such loans and other financial accommodations to
the Company on the terms and conditions contained herein;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein, the
parties hereto hereby agree as follows:

 

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

 

Section 1.1            Defined Terms.

 

As used in this Credit
Agreement, terms defined in the preamble to this Credit Agreement have the
meanings therein indicated, and the following terms have the following
meanings:

 

“Account Designation
Letter” shall mean the Notice of Account Designation Letter dated the
Closing Date from the Company to the Administrative Agent substantially in the
form attached hereto as Schedule 1.1.

 

“Administrative Agent”
shall have the meaning set forth in the preamble of this Credit Agreement and
any successors in such capacity.

 

“Administrative
Agent’s Office” shall mean, the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 9.2, or such other
address or account as the Administrative Agent may from time to time notify to
the Company and the Lenders.

 

“Affected Lender”
shall have the meaning set forth in Section 2.12(a).

 

“Affiliate” shall
mean as to any Person, any other Person which, directly or indirectly,
controls, is controlled by, or is under common control with, such Person
(excluding any trustee

 

 

under, or any committee with responsibility for administering, any
Plan).  For purposes of this definition,
a Person shall be deemed to be “controlled by” another Person if such Person
possesses, directly or indirectly, power either (a) to vote 20% or more of
the securities (on a fully diluted basis) having ordinary voting power for the
election of directors or managing general partners of such Person or
(b) to direct or cause the direction of the management and policies of
such Person whether by contract or otherwise.

 

“Aggregate Revolving
Committed Amount” shall have the meaning set forth in Section 2.1.

 

“Alternate Base Rate”
shall mean, for any day, a rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. 
For purposes hereof: “Prime Rate” shall mean, at any time, the
rate of interest per annum publicly announced from time to time by Wachovia at
its principal office in Charlotte, North Carolina as its prime rate.  Each change in the Prime Rate shall be
effective as of the opening of business on the day such change in the Prime
Rate occurs.  The parties hereto
acknowledge that the rate announced publicly by Wachovia as its Prime Rate is
an index or base rate and shall not necessarily be its lowest or best rate
charged to its customers or other banks; and “Federal Funds Effective Rate”
shall mean, for any day, the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published on the next succeeding Business Day by the
Federal Reserve Bank of New York, or, if such rate is not so published on
the next succeeding Business Day, the average of the quotations for the day of
such transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by it. 
If for any reason the Administrative Agent shall have determined (which
determination shall be conclusive in the absence of manifest error) that it is
unable to ascertain the Federal Funds Effective Rate, including the inability
or failure of the Administrative Agent to obtain sufficient quotations in
accordance with the terms above, the Alternate Base Rate shall be determined
without regard to clause (b) of the first sentence of this definition
until the circumstances giving rise to such inability no longer exist.  Any change in the Alternate Base Rate due to
a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective on the opening of business on the date of such change.

 

“Alternate Base Rate
Loans” shall mean Loans that bear interest at an interest rate based on the
Alternate Base Rate.

 

“Applicable Percentage”
shall mean, for any day, the rate per annum set forth below opposite the
applicable level then in effect, it being understood that the Applicable
Percentage for (a) Revolving Loans which are Alternate Base Rate Loans
shall be the percentage set forth under the column “Alternate Base Rate Margin
for Revolving Loans”, (b) Revolving Loans which are LIBOR Rate Loans shall
be the percentage set forth under the column “LIBOR Rate Margin for Revolving
Loans”, (c) the Revolving Commitment Fee shall be the percentage set forth
under the column “Commitment Fee”, (d) that portion of the Term Out Loan
which is comprised of Alternate Base Rate Loan shall be the percentage set
forth under the column “Alternate Base Rate Margin for Term Out Loan”, (e) that
portion of the Term Out Loan which

 

2

 

is comprised of a LIBOR Rate Loan shall be the percentage set forth
under the column “LIBOR Rate Margin for Term Out Loan” :

 

	
  Level

  	
   

  	
  Leverage

  Ratio

  	
   

  	
  Alternate

  Base Rate

  Margin for

  Revolving

  Loans

  	
   

  	
  LIBOR Rate

  Margin for

  Revolving Loans

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Alternate

  Base Rate

  Margin for

  Term Out Loan

  	
   

  	
  LIBOR Rate

  Margin for

  Term Out Loan

  	
   

  
	
  I

  	
   

  	
  >
  2.00 to 1.0

  	
   

  	
  0.000

  	
  %

  	
  0.950

  	
  %

  	
  0.175

  	
  %

  	
  0.200

  	
  %

  	
  1.200

  	
  %

  
	
  II

  	
   

  	
  >
  1.25 to 1.0

  but

  < 2.00 to 1.0

  	
   

  	
  0.000

  	
  %

  	
  0.625

  	
  %

  	
  0.120

  	
  %

  	
  0.000

  	
  %

  	
  0.800

  	
  %

  
	
  III

  	
   

  	
  < 1.25 to 1.0

  	
   

  	
  0.000

  	
  %

  	
  0.450

  	
  %

  	
  0.080

  	
  %

  	
  0.000

  	
  %

  	
  0.575

  	
  %

  

 

The Applicable Percentage
shall, in each case, be determined and adjusted quarterly on the date
five (5) Business Days after the date on which the Administrative Agent
has received from the Company the quarterly financial information (in the case
of the first three Fiscal Quarters of the Company), annual financial
information (in the case of the fourth Fiscal Quarter of the Company), and
certifications required to be delivered to the Administrative Agent and the
Lenders in accordance with the provisions of Sections 5.1(a), (b)
and (c) pursuant to which the Company shall notify the Administrative
Agent of a change in the applicable pricing level based on the financial
information contained therein (each an “Interest Determination Date”).  Subject to the last sentence of this
definition, such Applicable Percentage shall be effective from such Interest
Determination Date until the next such Interest Determination Date.  Notwithstanding the foregoing, the initial
Applicable Percentages shall be set at Level II until the first Interest
Determination Date to occur after the delivery by the Company of the financial
statements and certifications required pursuant to Sections 5.1(a), (b) and (c)
for the Fiscal Quarter ended March 31, 2004. 
If the Company shall fail to provide the quarterly and annual financial
information and certifications in accordance with the provisions of
Sections 5.1(a), (b) and (c), the Applicable Percentage shall, on the date
five (5) Business Days after the date by which the Company was so required
to provide such financial information and certifications to the Administrative
Agent and the Lenders, be based on Level I until such time as such
information and certifications are provided, whereupon the Level shall be
determined by the then current Leverage Ratio.

 

“Arranger” shall
mean Wachovia Capital Markets, LLC, together with its successors and
assigns.

 

“Bankruptcy Code”
shall mean the Bankruptcy Code in Title 11 of the United States Code,
as amended, modified, succeeded or replaced from time to time.

 

“Bilateral Credit
Facilities” shall mean the credit agreements entered into by the Company
with each of ABN AMRO Bank N.V., Barclays Bank PLC, BNP Paribas, Citizens Bank
of Massachusetts, Dresdner Bank AG (Frankfurt Branch), Fleet National Bank, Fortis
(USA) Finance LLC, Key Corporate Capital Inc., Mizuho Corporate Bank, LTD,
SunTrust Bank,

 

3

 

The Northern Trust Company, UBS AG, Cayman Islands Branch, Wachovia
National Bank, collectively.

 

“Borrower Obligations”
shall mean, without duplication, (a) all of the obligations, indebtedness
and liabilities of the Company to the Lenders (including the Issuing Lender)
and the Administrative Agent, whenever arising, under this Credit Agreement,
the Notes or any of the other Credit Documents including principal, interest,
fees, reimbursements and indemnification obligations and other amounts
(including, but not limited to, any interest accruing after the occurrence of a
filing of a petition of bankruptcy under the Bankruptcy Code with respect to
the Company, regardless of whether such interest is an allowed claim under the
Bankruptcy Code) and (b) all liabilities and obligations, whenever
arising, owing from the Company or any of the Company’s Subsidiaries to any Hedging
Agreement Provider arising under any Hedging Agreement permitted hereunder.

 

“Borrowing Date”
shall mean, in respect of any Loan, the date such Loan is made.

 

“Business Day”
shall mean a day other than a Saturday, Sunday or other day on which commercial
banks in Charlotte, North Carolina or New York, New York are
authorized or required by law to close; provided, however, that
(a) when used in connection with a rate determination, borrowing or
payment in respect of a LIBOR Rate Loan, the term “Business Day” shall also
exclude any day on which banks in London, England are not open for dealings in
deposits of Dollars in the London interbank market.

 

“Capital Stock”
shall mean (a) in the case of a corporation, capital stock, (b) in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of capital
stock, (c) in the case of a partnership, partnership interests (whether
general or limited), (d) in the case of a limited liability company,
membership interests and (e) any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing Person.

 

“Change of Control”
shall mean the occurrence of one or more of the following events: (a) any sale,
lease, exchange or other transfer (in a single transaction or a series of
related transactions) of all or substantially all of the assets of the Company
to any Person or “group” (within the meaning of the Exchange Act and the rules
of the SEC thereunder as in effect on the date hereof), (b) the acquisition or
ownership, directly or indirectly, beneficially or of record, by any Person or
“group” (within the meaning of the Exchange Act and the rules of the SEC
thereunder as in effect on the date hereof) of 35% or more of the outstanding
shares of Voting Stock of the Company, or (c) the occupation of a majority of
the seats (other than vacant seats) on the board of directors of the Company by
Persons who were neither (i) nominated by the current board of directors or
(ii) appointed by directors so nominated.

 

“Closing Date”
shall mean the date of this Credit Agreement.

 

“Code” shall mean
the Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder.  Section references to the Code

 

4

 

are to the Code as in effect at the date of this Agreement and any
subsequent provisions of the Code amendatory thereof, supplemental thereto or
substituted therefore.

 

“Commitment Fee”
shall have the meaning set forth in Section 2.2(a).

 

“Commitment Period”
shall mean the period from and including the Closing Date to but not including
the Maturity Date.

 

“Commitment Transfer
Supplement” shall mean a Commitment Transfer Supplement, substantially in
the form of Schedule 9.6(c).

 

“Company” shall
have the meaning set forth in the first paragraph of this Credit Agreement.

 

“Consolidated Capital
Expenditures” shall mean, for any period of four consecutive Fiscal
Quarters, all capital expenditures of the Company and its Subsidiaries
(including without limitation additions to computer software) on a consolidated
basis for such period, all as determined in accordance with GAAP.

 

“Consolidated EBITDA”
shall mean, for any period of four consecutive Fiscal Quarters, the Company and
its Subsidiaries’ income before income taxes, plus (i) Consolidated
Interest Expense, (ii) depreciation and amortization expense,
(iii) income (or minus loss) from discontinued operations and
(iv) charges for the in-process, research and development related to an
acquisition, all as the same are or would be set forth in a statement of the
income of the Company for such period.

 

“Consolidated Interest
Expense” shall mean, for any period of four consecutive Fiscal Quarters,
the total interest expense of the Company and its Subsidiaries, as the same
would be set forth in a statement of income of the Company and its Subsidiaries
for such period.

 

“Consolidated Total
Debt” shall mean, as of any particular time and after eliminating
inter-company items, all Indebtedness of the Company and its Subsidiaries, all
as consolidated and determined in accordance with GAAP (but shall not include
Hedging Agreements).

 

“Contractual
Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any contract, agreement, instrument or undertaking
to which such Person is a party or by which it or any of its property is bound.

 

“Credit Agreement”
shall mean this Credit Agreement, as amended, modified or supplemented from
time to time in accordance with its terms.

 

“Credit Documents”
shall mean this Credit Agreement, each of the Notes, any Commitment Transfer
Supplement and all other agreements, documents, certificates and instruments
delivered to the Administrative Agent or any Lender by the Company in
connection therewith (other than any agreement, document, certificate or
instrument related to a Hedging Agreement).

 

5

 

“Default” shall
mean any event which with notice, the lapse of time or both would constitute an
Event of Default.

 

“Defaulting Lender”
shall mean, at any time, any Lender that, at such time (a) has failed to
make a Loan required pursuant to the term of this Credit Agreement absent a
good faith dispute relating to the Credit Agreement or the Extensions of Credit
hereunder, (b) has failed to pay to the Administrative Agent or any Lender
an amount owed by such Lender pursuant to the terms of this Credit Agreement
absent a good faith dispute relating to the Credit Agreement or the Extensions
of Credit hereunder, or (c) has been deemed insolvent or has become
subject to a bankruptcy or insolvency proceeding or to a receiver, trustee or
similar official.

 

“Dollars” and “$”
shall mean dollars in lawful currency of the United States of America.

 

“Domestic Lending
Office” shall mean, initially, the office of each Lender designated as such
Lender’s Domestic Lending Office shown on Schedule 9.2; and
thereafter, such other office of such Lender as such Lender may from time to
time specify to the Administrative Agent and the Company as the office of such
Lender at which Alternate Base Rate Loans of such Lender are to be made.

 

“Environmental Laws”
shall mean any and all applicable federal, state, local or municipal laws,
rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority regulating, relating to or imposing liability or
standards of conduct concerning environmental protection measures, including
without limitation, Hazardous Materials, as now or may at any time be in effect
during the term of this Credit Agreement.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and the rulings issued thereunder.  Section references to ERISA are to ERISA as
in effect at the date of this Credit Agreement and any subsequent provisions of
ERISA amendatory thereof, supplemental thereto or substituted therefor.

 

“ERISA Affiliate”
shall mean each person (as defined in Section 3(9) of ERISA) which together
with the Company would be deemed a “single employer” (i) within the meaning of
Section 414(b), (c), (m) or (o) of the Code or (ii) as a result of the Company
or any other Company being or having been a general partner of such person.

 

“Eurodollar Reserve
Percentage” shall mean for any day, the percentage (expressed as a decimal
and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is
in effect for such day as prescribed by the Federal Reserve Board (or any
successor) for determining the maximum reserve requirement (including without
limitation any basic, supplemental or emergency reserves) in respect of Eurocurrency
liabilities, as defined in Regulation D of such Board as in effect from
time to time, or any similar category of liabilities for a member bank of the
Federal Reserve System in New York City.

 

6

 

“Event of Default”
shall mean any of the events specified in Section 7.1; provided, however,
that any requirement for the giving of notice or the lapse of time, or both, or
any other condition, has been satisfied.

 

“Exchange Act”
shall mean the U.S. Securities Exchange Act of 1934, as amended.

 

“Extension Consent” shall have the meaning
ascribed thereto in Section 2.1(f).

 

“Extension Consent Date” shall have the meaning
ascribed thereto in Section 2.1(f).

 

“Extension of Credit”
shall mean, as to any Lender, the making of a Loan by such Lender.

 

“Extension Request”
shall have the meaning ascribed thereto in Section 2.1(f).

 

“Federal Funds
Effective Rate” shall have the meaning set forth in the definition of
“Alternate Base Rate”.

 

“Fee Letter” shall
mean the letter agreement dated December 2, 2003 addressed to the Company from
the Administrative Agent and the Arranger, as amended, modified or otherwise
supplemented.

 

“Fiscal Quarter”
shall mean any quarter of a Fiscal Year.

 

“Fiscal Year”
shall mean any period of twelve consecutive calendar months ending on December
31; references to a Fiscal Year with a number corresponding to any calendar
year (e.g., the 2003 Fiscal Year) refer to the Fiscal Year ending on the
December 31 occurring during such calendar year.

 

“Fixed Charge Coverage
Ratio” shall mean, for any Fiscal Quarter, the ratio of (a) Consolidated
EBITDA to (b) Fixed Charges as of the last day of such Fiscal Quarter.

 

“Fixed Charges”
shall mean, with respect to the Company and its Subsidiaries on a consolidated
basis, for the four Fiscal Quarters most recently concluded, the sum of
(i) Consolidated Interest Expense plus (ii) Scheduled Funded
Debt Payments plus (iii) Consolidated Capital Expenditures plus
(iv) additions to computer software.

 

“GAAP” shall mean
generally accepted accounting principles applied on a basis consistent with the
principles used in the preparation of the Company’s annual balance sheet and
income statement as of and for the year ending December 31, 2003, copies
of which have previously been delivered to the Administrative Agent, with such
changes as may be approved by the Company’s independent auditors.

 

7

 

“Governmental
Authority” shall mean any nation or government, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

 

“Hazardous Materials”
shall mean any hazardous materials, hazardous wastes, hazardous constituents,
hazardous or toxic substances, petroleum products (including crude oil or any
fraction thereof), defined or regulated as such in or under any Environmental
Law.

 

“Hedging Agreement
Provider” shall mean any Person that enters into a Hedging Agreement with
the Company or any of its Subsidiaries that is permitted hereunder to the
extent such Person is a Lender, an Affiliate of a Lender or any other Person
that was a Lender (or an Affiliate of a Lender) at the time it entered into the
Hedging Agreement but has ceased to be a Lender (or whose Affiliate has ceased
to be a Lender) under the Credit Agreement.

 

“Hedging Agreements”
shall mean, with respect to any Person, any interest rate swap, cap or collar
agreement or similar arrangement between such Person and one or more
counterparties, any foreign currency exchange agreement, currency protection
agreements, commodity purchase or option agreements or other interest or
exchange rate or commodity price hedging agreements.

 

“IMS AG” shall
mean IMS AG, a Swiss corporation and wholly-owned subsidiary of the Company.

 

“IMS Japan” shall
mean IMS Japan K.K., a Japanese corporation and a wholly-owned subsidiary of
the Company.

 

“Indebtedness”
shall mean, as to any Person, at a particular time without duplication, (a) all
indebtedness of such Person for borrowed money or on account of advances made
to such person or for the deferred purchase price of property (excluding
accounts payable to trade creditors for goods and services which are incurred
in the ordinary course of business and on customary trade terms), in respect of
which such Person is liable or evidenced by any bond, debenture, note or other
instrument, (b) indebtedness arising under acceptance facilities and the face
amount of all letters of credit issued for the account of such person and,
without duplication, all drafts drawn thereunder, (c) all liabilities secured
by any lien on any property owned by such Person even though it has not assumed
or otherwise become liable for the payment thereof, (d) obligations under
financial leases; (e) all indebtedness of others with respect to which such
person has provided a guarantee or otherwise has agreed to become directly or
indirectly liable; and (f) all obligations under Hedging Agreements.

 

“Interest Determination
Date” shall have the meaning assigned thereto in the definition of
“Applicable Percentage”.

 

“Interest Payment Date”
shall mean (a) as to any Alternate Base Rate Loan, the last Business Day
of each March, June, September and December and on the applicable Maturity Date
and the Term Out Maturity Date, if applicable, (b) as to any LIBOR Rate
Loan having an Interest Period of three months or less, the last day of such
Interest Period, (c) as to any LIBOR

 

8

 

Rate Loan having an Interest Period longer than three months, each day
which is three months after the first day of such Interest Period and the last
day of such Interest Period and (d) as to any Loan which is the subject of a
mandatory prepayment required pursuant to Section 2.4(b), the date on
which such mandatory prepayment is due.

 

“Interest Period”
shall mean, with respect to any LIBOR Rate Loan,

 

(a)             initially, the period commencing on
the Borrowing Date or conversion date, as the case may be, with respect to such
LIBOR Rate Loan and ending fourteen days, one, two, three, six or twelve months
thereafter (in the case of twelve months, only with the prior consent of the
Administrative Agent and each of the Lenders (in its sole discretion)), subject
to availability, as selected by the Company in the Notice of Borrowing or
Notice of Conversion given with respect thereto; and

 

(b)             thereafter, each period commencing
on the last day of the immediately preceding Interest Period applicable to such
LIBOR Rate Loan and ending fourteen days, one, two, three, six or twelve months
thereafter (in the case of twelve months, only with the prior consent of the
Administrative Agent and each of the Lenders (in its sole discretion)), as
selected by the Company by irrevocable notice to the Administrative Agent not
less than three Business Days prior to the last day of the then current
Interest Period with respect thereto;

 

provided
that the foregoing provisions are subject to the following:

 

(i)            if any Interest Period pertaining to
a LIBOR Rate Loan would otherwise end on a day that is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
the result of such extension would be to carry such Interest Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

 

(ii)           any Interest Period pertaining to a
LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
relevant calendar month;

 

(iii)          if the Company shall fail to give
notice as provided above, the Company shall be deemed to have selected an Alternate
Base Rate Loan to replace the affected LIBOR Rate Loan;

 

(iv)          no Interest Period in respect of any
Loan shall extend beyond the applicable Maturity Date (or, if the Company
chooses to term out the then existing Loans pursuant to Section 2.1(c)(ii),
the Term Out Maturity Date); and

 

(v)           no more than eight (8) LIBOR
Rate Loans may be in effect at any time. 
For purposes hereof, LIBOR Rate Loans with different Interest Periods
shall be considered as separate LIBOR Rate Loans, even if they shall begin on
the

 

9

 

same date and have the
same duration, although borrowings, extensions and conversions may, in
accordance with the provisions hereof, be combined at the end of existing
Interest Periods to constitute a new LIBOR Rate Loan with a single Interest
Period.

 

“Lender” shall
have the meaning set forth in the first paragraph of this Credit Agreement.

 

“Leverage Ratio”
shall mean, for any Fiscal Quarter, the ratio of (a) Consolidated Total
Debt to (b) Consolidated EBITDA as of the last day of such Fiscal Quarter.

 

“LIBOR” shall
mean, for any LIBOR Rate Loan for any Interest Period therefor, the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
Telerate Page 3750 (or any successor page) as the London interbank offered rate
for deposits in Dollars at approximately 11:00 A.M. (London time) two
Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period.  If
for any reason such rate is not available, the term “LIBOR” shall mean, for any
LIBOR Rate Loan for any Interest Period therefor, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen
LIBO Page as the London interbank offered rate for deposits in Dollars, as
appropriate, at approximately 11:00 A.M. (London time) two Business Days
prior to the first day of such Interest Period for a term comparable to such
Interest Period; provided, however, if more than one rate is
specified on Reuters Screen LIBO Page, the applicable rate shall be the
arithmetic mean of all such rates (rounded upwards, if necessary, to the
nearest 1/100 of 1%).  If, for any
reason, neither of such rates is available, then “LIBOR” shall mean the rate
per annum at which, as determined by the Administrative Agent, Dollars in an
amount comparable to the Loans then requested are being offered to leading
banks at approximately 11:00 A.M. London time, two (2) Business Days
prior to the commencement of the applicable Interest Period for settlement in
immediately available funds by leading banks in the London interbank market for
a period equal to the Interest Period selected.

 

“LIBOR Lending Office”
shall mean, initially, the office(s) of each Lender designated as such Lender’s
LIBOR Lending Office shown on Schedule 9.2; and thereafter, such
other office of such Lender as such Lender may from time to time specify to the
Administrative Agent and the Company as the office of such Lender at which the
LIBOR Rate Loans of such Lender are to be made.

 

“LIBOR Rate” shall
mean a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following
formula:

 

	
  LIBOR Rate =

  	
   

  	
  LIBOR

  
	
   

  	
   

  	
  1.00 - Eurodollar Reserve Percentage

  

 

“LIBOR Rate Loan”
shall mean Loans the rate of interest applicable to which is based on the LIBOR
Rate.

 

10

 

“Lien” shall mean
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other) or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement and any financial lease having substantially the same economic effect
as any of the foregoing).

 

“Loan” shall mean
a Revolving Loan and/or the Term Out Loan, as appropriate.

 

“Material Adverse
Change” shall mean a material adverse change in the financial condition, operations,
assets, business, properties or prospects of the Company, individually or the
Company and its Subsidiaries taken as a whole.

 

“Material Subsidiary”
shall mean, as of any date of determination, any Subsidiary that (a) accounted
for at least five percent (5%) of consolidated revenues of the Company and its
Subsidiaries, in each case ending on the last day of the last of the last
Fiscal Quarter immediately preceding the date as of which any such
determination is made; or (b) has assets which represent at least five percent
(5%) of the consolidated assets of the Company and its Subsidiaries as of the
last day of the last Fiscal Quarter immediately preceding the date as of which
any such determination is made; all of which, with respect to clauses (a) and
(b) shall be as reflected on the financial statements of the Company for the
period, or as of the date in question.

 

“Maturity Date”
means, as to each Lender, the date that is 364 days following the Closing Date,
or if extended with the written consent of such Lender, such later date not
more than 364 days following the then applicable Maturity Date.

 

“Note” or “Notes”
shall mean the Revolving Notes, collectively or individually, as appropriate.

 

“Notice of Borrowing”
shall mean the written notice of borrowing as referenced and defined in
Section 2.1(b)(i).

 

“Notice of
Conversion/Extension” shall mean the written notice of conversion or
extension as referenced and defined in Section 2.7.

 

“Participant”
shall have the meaning set forth in Section 9.6(b).

 

“PBGC” shall mean
the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA.

 

“Periodical SEC Report”
shall mean any report on Form 10-K or 10-Q of the Company filed with the SEC
pursuant to Sections 13(a) and 15(d) of the Exchange Act for the most recently
concluded Fiscal Year or Fiscal Quarter, as applicable.

 

“Person” shall
mean an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.

 

11

 

“Plan” shall mean
any multi-employer or single-employer plan as defined in Section 4001 of ERISA,
which is maintained or contributed to by (or to which there is an obligation to
contribute of) the Company or a Subsidiary of the Company or an ERISA Affiliate
and each plan for the five-year period immediately following the latest date,
on which the Company or a Subsidiary of the Company or an ERISA Affiliate
maintained, contributed to or has an obligation to contribute to such plan.

 

“Prime Rate” shall
have the meaning set forth in the definition of Alternate Base Rate.

 

“Purchasing Lenders”
shall have the meaning set forth in Section 9.6(c).

 

“Register” shall
have the meaning set forth in Section 9.6(d).

 

“Related Fund”
shall mean, with respect to any Lender or other Person who invests in
commercial bank loans in the ordinary course of business, any other fund or
trust or entity that invests in commercial bank loans in the ordinary course of
business and is advised or managed by such Lender, by an Affiliate of such
Lender or other Persons or the same investment advisor as such Lender or by an
Affiliate of such Lender or investment advisor.

 

“Reportable Event”
shall mean any of the events set forth in Section 4043(c) of ERISA with
respect to a Plan, other than those events as to which the thirty-day notice
period is waived under the regulations promulgated thereunder.

 

“Required Lenders”
shall mean, at any time, Lenders holding in the aggregate a majority of
(a) the Revolving Commitments or (b) if the Revolving Commitments
have been terminated, the aggregate principal amount of the outstanding Loans provided,
however, that if any Lender shall be a Defaulting Lender at such time,
then there shall be excluded from the determination of Required Lenders, the
Borrower Obligations owing to such Defaulting Lender and such Defaulting
Lender’s Revolving Commitments, or after termination of the Revolving
Commitments, the principal balance of the Borrower Obligations owing to such
Defaulting Lender.

 

“Requirement of Law”
shall mean, as to any Person, the certificate of incorporation and bylaws or
other organizational or governing documents of such Person, and each law,
treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject.

 

“Responsible Officer”
shall mean, as to the Company, the Chief Executive Officer, the President, the
Chief Financial Officer, the Treasurer or any other officer acting in a
substantially similar capacity.

 

“Revolving Commitment”
shall mean, with respect to each Lender, the commitment of such Lender to make
Revolving Loans in an aggregate principal amount at any time outstanding up to
such Lender’s Revolving Committed Amount.

 

12

 

“Revolving Commitment
Percentage” shall mean, for each Lender, the percentage identified as its
Revolving Commitment Percentage on Schedule 2.1(a), as such
percentage may be modified in connection with any assignment made in accordance
with the provisions of Section 9.6(c).

 

“Revolving Committed
Amount” shall mean the amount of each Lender’s Revolving Commitment as
specified on Schedule 2.1(a), as such amount may be reduced from
time to time in accordance with the provisions hereof.

 

“Revolving Loans”
shall have the meaning set forth in Section 2.1.

 

“Revolving Note”
or “Revolving Notes” shall mean the promissory notes of the Company in
favor of each of the Lenders evidencing the Revolving Loans provided pursuant
to Section 2.1(e), individually or collectively, as appropriate, as such
promissory notes may be amended, modified, supplemented, extended, renewed or
replaced from time to time.

 

“Sale” means any
sale, transfer, assignment, lease, conveyance, exchange, swap or other
disposition.

 

“Scheduled Funded Debt
Payments” shall mean, as of any date of determination, the sum of all
scheduled payments of principal by the Company and its Subsidiaries made on
Indebtedness classified as “long-term” under GAAP for the four consecutive
Fiscal Quarters prior to such date of determination.

 

“SEC” shall mean
the U.S. Securities and Exchange Commission.

 

“Subsidiary” shall
mean any corporation or other entity of which the Company owns, directly or
indirectly, such number of outstanding shares or other voting interests as have
more than fifty percent (50%) of the ordinary voting power for the election of
directors.  Unless otherwise qualified,
all references to a “Subsidiary” or to “Subsidiaries” in this Credit Agreement
shall refer to a Subsidiary or Subsidiaries of the Company.

 

“Taxes” shall have
the meaning set forth in Section 2.17.

 

“Term Out Maturity
Date” shall have the meaning set forth in Section 2.1(c)(ii).

 

“Term Out Loan”
has the meaning set forth in Section 2.1(c)(ii).

 

“Three Year Credit
Agreement” means that certain Three Year Credit Agreement dated as of the
date hereof among the Company, IMS AG, IMS Japan, the Lenders identified
therein and Wachovia, as administrative agent as amended, modified,
supplemented, extended or restated from time to time.

 

13

 

“Tranche” shall
mean the collective reference to LIBOR Rate Loans whose Interest Periods begin
and end on the same day.  A Tranche may
sometimes be referred to as a “LIBOR Tranche”.

 

“Transfer Effective
Date” shall have the meaning set forth in each Commitment Transfer
Supplement.

 

“Type” shall mean,
as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR Rate Loan,
as the case may be.

 

“Voting Stock”
shall mean, with respect to any Person, Capital Stock issued by such Person the
holders of which are ordinarily, in the absence of contingencies, entitled to
vote for the election of directors (or persons performing similar functions) of
such Person, even though the right so to vote has been suspended by the
happening of such a contingency.

 

“Wachovia” shall
mean Wachovia Bank, National Association, together with its successors and/or
assigns.

 

Section
1.2            Other Definitional
Provisions.

 

(a)           Unless otherwise specified therein,
all terms defined in this Credit Agreement shall have the defined meanings when
used in the Notes or other Credit Documents or any certificate or other
document made or delivered pursuant hereto.

 

(b)           The words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Credit Agreement
shall refer to this Credit Agreement as a whole and not to any particular
provision of this Credit Agreement, and Section, subsection, Schedule and
Exhibit references are to this Credit Agreement unless otherwise specified.

 

(c)           The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms.

 

Section 1.3            Accounting Terms.

 

Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with GAAP
applied on a basis consistent with the most recent audited consolidated
financial statements of the Company delivered to the Lenders; provided
that, if the Company shall notify the Administrative Agent that it wishes to
amend any covenant in Section 6.6 to eliminate the effect of any change in
GAAP on the operation of such covenant (or if the Administrative Agent notifies
the Company that the Required Lenders wish to amend Section 6.6 for such
purpose), then the Company’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant is
amended in a manner satisfactory to the Company and the Required Lenders.

 

14

 

Notwithstanding the
above, the parties hereto acknowledge and agree that, for purposes of all
calculations made in determining compliance for any applicable period with the
financial covenants set forth in Section 6.6, (i) beginning after
consummation of any acquisition, (A) income statement items and other
balance sheet items (whether positive or negative) attributable to the target
acquired in such transaction shall be included in such calculations to the
extent relating to such applicable period, subject to adjustments mutually
acceptable to the Company and the Administrative Agent, and (B) Indebtedness
of a target which is retired in connection with a acquisition shall be excluded
from such calculations and deemed to have been retired as of the first day of
such applicable period and (ii) beginning after consummation of any “Sale”
permitted by Section 6.3(b), (A) income statement items and other balance
sheet items (whether positive or negative) attributable to the assets disposed
of shall be excluded in such calculations to the extent relating to such
applicable period, subject to adjustments mutually acceptable to the Company
and the Administrative Agent and (B) Indebtedness of the target of an
acquisition which is retired in connection with a Sale permitted by Section
6.3(b) shall be excluded from such calculations and deemed to have been retired
as of the first day of such applicable period.

 

ARTICLE II

THE LOANS; AMOUNT AND TERMS

 

Section 2.1            Revolving Loans.

 

(a)           Revolving Commitment.  During the Commitment Period, subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans in Dollars to the Company from time to time in an aggregate
principal amount of up to FOUR HUNDRED THIRTY MILLION
DOLLARS ($430,000,000) (as such aggregate maximum amount may be
reduced from time to time as provided in Section 2.3, the “Aggregate
Revolving Committed Amount”) for the purposes hereinafter set forth; provided,
however, that with regard to each Lender individually, the aggregate
principal amount of such Lender’s Revolving Commitment Percentage of
outstanding Revolving Loans shall not exceed such Lender’s Revolving Committed
Amount, and with regard to the Lenders collectively, the aggregate principal
amount of the outstanding Revolving Loans shall not exceed the Aggregate
Revolving Committed Amount.  Revolving
Loans may consist of Base Rate Loans or LIBOR Rate Loans, or a combination
thereof, as the Company may request, and may be repaid and reborrowed in
accordance with the provisions hereof; provided, however, Revolving
Loans made on the Closing Date or on any of the three Business Days following
the Closing Date may only consist of Alternate Base Rate Loans unless the
Company executes a funding indemnity letter in form and substance satisfactory
to the Administrative Agent.  LIBOR Rate
Loans shall be made by each Lender at its LIBOR Lending Office and Alternate
Base Rate Loans at its Domestic Lending Office.

 

(b)           Revolving Loan Borrowings.

 

(i)            Notice of Borrowing.  The Company may request a Revolving Loan
borrowing by written notice (or telephone notice promptly confirmed in writing
which

 

15

 

confirmation may be by
fax) to the Administrative Agent not later than 12:00 Noon (Charlotte,
North Carolina time) on the Business Day prior to the date of requested
borrowing in the case of Alternate Base Rate Loans denominated in Dollars, and
on the third Business Day prior to the date of the requested borrowing in the
case of LIBOR Rate Loans denominated in Dollars.  Each such request for borrowing shall be irrevocable and shall
specify (A) that a Revolving Loan is requested, (B) the date of the
requested borrowing (which shall be a Business Day), (C) the aggregate
principal amount to be borrowed, and (D) whether the borrowing shall be
comprised of Alternate Base Rate Loans, LIBOR Rate Loans or a combination
thereof, and if LIBOR Rate Loans are requested, the Interest Period(s).  A form of Notice of Borrowing (a “Notice
of Borrowing”) is attached as Schedule 2.1(b)(i).  If the Company shall fail to specify in any
such Notice of Borrowing (I) an applicable Interest Period in the case of
a LIBOR Rate Loan, then such notice shall be deemed to be a request for an
Interest Period of one month or (II) the type of Revolving Loan requested,
then such notice shall be deemed to be a request for an Alternate Base Rate
Loan hereunder.  The Administrative
Agent shall give notice to each Lender promptly upon receipt of each Notice of
Borrowing, the contents thereof and each such Lender’s share thereof.

 

(ii)           Minimum
Amounts.  Each Revolving Loan which
is an Alternate Base Rate Loan shall be in a minimum aggregate amount of
$1,000,000 and in integral multiples of $500,000 in excess thereof (or the
remaining amount of the Aggregate Revolving Committed Amount, if less).  Each Revolving Loan which is a LIBOR Rate
Loan shall be in a minimum aggregate amount of $1,000,000 and in integral
multiples of $500,000 in excess thereof.

 

(iii)          Advances.  Each Lender will make its Revolving
Commitment Percentage of each Revolving Loan borrowing available to the Administrative
Agent, for the account of the Company, in Dollars and in funds immediately
available to the Administrative Agent, at the Administrative Agent’s Office by
12:00 Noon on the date specified in the applicable Notice of Borrowing in
the case of any Revolving Loan denominated in Dollars.  Such borrowing will then be made available
to the Company by the Administrative Agent by crediting the account of the
Company on the books of the Administrative Agent’s Office with the aggregate of
the amounts made available to the Administrative Agent by the Lenders and in
like funds as received by the Administrative Agent.

 

(c)           Repayment.

 

(i)            The principal amount of all
Revolving Loans shall be due and payable in full on the Maturity Date, unless
accelerated sooner pursuant to Section 7.2.

 

(ii)           On
or before the date that is ten (10) Business Days prior to the Maturity Date,
the Company may, as long as no Default or Event of Default exists and is
continuing, notify the Administrative Agent in writing (and the Administrative
Agent shall promptly forward such notice to the Lenders) that, as of the
Maturity Date, the Company is converting all of the outstanding Revolving Loans
to a term loan (the “Term

 

16

 

Out Loan”)
which shall be due and payable in full on the date one year subsequent to the
Maturity Date (the “Term Out Maturity Date”).  It is understood and agreed that subsequent to the Maturity Date,
(i) the Company may no longer request, and the Lenders are no longer
obligated to make or issue, new Revolving Loans, (ii) the Revolving Commitment
of each Lender shall automatically terminate, (iii) any amounts repaid may not
be reborrowed, (iv) interest shall accrue on the Term Out Loan, at the
option of the Company, in accordance with the terms of Section 2.1(d)(ii)
and, as set forth in the definition of Applicable Margin, and (v) the
Company shall have the right to prepay all or a portion of the outstanding Term
Out Loan in accordance with Section 2.3(a).

 

(d)           Interest.  Subject to the provisions of
Section 2.7(i),

 

(i) Revolving
Loans shall bear interest as follows:

 

(A)          Alternate
Base Rate Loans.  During such
periods as Revolving Loans shall be comprised of Alternate Base Rate Loans,
each such Alternate Base Rate Loan shall bear interest at a per annum rate
equal to the sum of the Alternate Base Rate for Revolving Loans plus the
Applicable Percentage; and

 

(B)           LIBOR
Rate Loans.  During such periods as
Revolving Loans shall be comprised of LIBOR Rate Loans, each such LIBOR Rate
Loan shall bear interest at a per annum rate equal to the sum of the LIBOR Rate
for Revolving Loans plus the Applicable Percentage.

 

(ii)           the Term Out Loan shall bear interest
as follows:

 

(A)          Alternate
Base Rate Loans.  During such
periods as the Term Out Loan shall be comprised of Alternate Base Rate Loans,
such Alternate Base Rate Loans shall bear interest at a per annum rate equal to
the sum of the Alternate Base Rate for Term Out Loan plus the Applicable
Percentage; and

 

(B)           LIBOR
Rate Loans.  During such periods as
the Term Out Loan shall be comprised of a LIBOR Rate Loans, such LIBOR Rate
Loans shall bear interest at a per annum rate equal to the sum of the LIBOR
Rate for Term Out Loan plus the Applicable Percentage.

 

Interest on all Loans shall
be payable in arrears on each Interest Payment Date.

 

(e)           Revolving Notes.  Each Lender’s Revolving Committed Amount
shall be evidenced by a duly executed promissory note of the Company to such
Lender in substantially the form of Schedule 2.1(e).

 

(f)            Extension of Maturity Date.  The Company may, within 90 days, but not
less than 60 days, prior to the then applicable Maturity Date, by notice to the
Administrative Agent and the Lenders, make written request of the Lenders to
extend the then applicable Maturity Date for an additional period of 364 days
(the “Extension Request”).  Each
Lender shall make a

 

17

 

determination not later than 30 days following receipt of the Extension
Request (the date that is 30 days following the date the Extension Request is
received shall be the “Extension Consent Date”) as to whether or not it
will agree to extend the Maturity Date as requested (such approval of an
extension shall be an “Extension Consent”); provided, however,
that failure by any Lender to make a timely response to the Company’s request
for extension of the Maturity Date shall be deemed to constitute a refusal by
such Lender to extend the Maturity Date.

 

(g)           Lender
Not Consenting.  If by any Extension
Consent Date the Company and the Administrative Agent have not received an
Extension Consent from any Lender, the Maturity Date, as it relates to such
Lender, shall not be extended, the Revolving Commitment of such Lender shall
terminate on the Maturity Date applicable to it and any Loans made by such
Lender, all accrued and unpaid interest thereon and all other amounts due under
this Credit Agreement to such Lender shall be due and payable on the Maturity
Date applicable to it.  Upon the
termination of the Revolving Commitment of any such Lender, subject to Sections
2.1(i) or 2.1(j), the Aggregate Revolving Committed Amount shall be reduced by
the amount of such terminated Revolving Commitment, and the Revolving
Commitment Percentage of each other Lender shall be adjusted to that percentage
obtained by dividing the Revolving Commitment of such Lender by the Aggregate
Revolving Committed Amount after giving effect to such reduction.

 

(h)           Other
Lenders.  No refusal by any one
Lender to consent to any extension of the Maturity Date shall affect the
extension of the Maturity Date as it may relate to the Revolving Commitment and
Revolving Loans of any Lender which consents to such extension as provided in
Section 2.1(f), and one or more Lenders may consent to the extension of
the Maturity Date as it relates to them notwithstanding any refusal by any
other Lenders so to consent; provided that even as to the consenting
Lenders the Maturity Date will be extended only upon consent to such an
extension by Lenders holding more than 51% of the Aggregate Revolving Committed
Amount.

 

(i)            Increase
in Revolving Commitment of Other Lender or Lenders.  If any Lender does not deliver an Extension
Consent as provided in Section 2.1(f), the Company may offer each Lender which
has delivered an Extension Consent as provided in Section 2.1(f) a reasonable
opportunity to increase its Revolving Commitment by an amount equal to its
pro-rata share (based on its Commitment before such increase) of the Revolving
Commitment of the Lender which does not deliver an Extension Consent as
provided in Section 2.1(f).  After
giving such Lenders such an opportunity, the Company may, with the approval of
the Administrative Agent, amend this Credit Agreement to increase the Revolving
Commitment of any other Lender or Lenders with the consent of such Lender or
Lenders provided that such increase does not increase the Aggregate Revolving
Committed Amount to an amount greater than the Aggregate Revolving Committed
Amount in effect immediately before such expiration or termination.

 

(j)            Additional
Lender or Lenders.  If any Lender
does not deliver an Extension Consent as provided in Section 2.1(f), upon the
expiration of the Revolving Commitment of such Lender, the Company may, with
the approval of the Administrative Agent, amend this Credit Agreement as
provided in Section 9.6 to add one or more other Lenders as parties, with such
Commitment or Commitments as may be agreed to by the Administrative Agent and
such other

 

18

 

Lender or Lenders, provided that such additions do not increase the
Aggregate Revolving Committed Amount to an amount greater than the Aggregate
Revolving Committed Amount in effect immediately before such expiration or
termination.

 

(k)           Notice.  The Administrative Agent shall promptly
provide each of the Lenders with a copy of any amendment made pursuant to
Section 2.1(i) or Section 2.1(j).

 

Section 2.2            Fees.

 

(a)           Commitment Fee.  In consideration of the Revolving
Commitment, the Company agrees to pay to the Administrative Agent for the
ratable benefit of the Lenders a commitment fee (the “Commitment Fee”)
in an amount equal to the Applicable Percentage per annum on the average daily
unused amount of the Aggregate Revolving Committed Amount.  The Commitment Fee shall be payable
quarterly on the last Business Day of each calendar quarter.

 

(b)           Administrative Fee.  The Company agrees to pay to the
Administrative Agent the annual administrative fee as described in the Fee
Letter.

 

Section
2.3            Commitment Reductions.

 

(a)           Voluntary Reductions.  The Company shall have the right to
terminate or permanently reduce the unused portion of the Aggregate Revolving
Committed Amount at any time or from time to time upon not less than five
Business Days’ prior notice to the Administrative Agent (which shall notify the
Lenders thereof as soon as practicable) of each such termination or reduction,
which notice shall specify the effective date thereof and the amount of any
such reduction which shall be in a minimum amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof and shall be irrevocable and effective
upon receipt by the Administrative Agent, provided that no such
reduction or termination shall be permitted if after giving effect thereto, and
to any prepayments of the Loans made on the effective date thereof, the sum of
the outstanding Revolving Loans would exceed the Aggregate Revolving Committed
Amount.

 

(b)           Maturity Date.  The Revolving Commitment shall automatically
terminate on the Maturity Date.

 

Section 2.4            Prepayments.

 

(a)           Optional Prepayments.  The Company shall have the right to prepay
Loans in whole or in part from time to time; provided, however,
that each partial prepayment of a Revolving Loan shall be in a minimum
aggregate principal amount of $1,000,000  and integral multiples of $250,000  in
excess thereof.  The Company shall give
three Business Days’ irrevocable notice in the case of LIBOR Rate Loans and
same-day irrevocable notice on any Business Day in the case of Alternate Base
Rate Loans, to the Administrative Agent (which shall notify the Lenders thereof
as soon as practicable).  Prepayments
shall be applied first to Alternate Base Rate Loans and then to LIBOR Rate
Loans in direct order of Interest Period maturities.  All prepayments under this Section 2.4(a) shall be subject
to Section 2.17, but otherwise without

 

19

 

premium or penalty.  Interest on
the principal amount prepaid shall be payable on the next occurring Interest
Payment Date that would have occurred had such loan not been prepaid or, at the
request of the Administrative Agent, interest on the principal amount prepaid
shall be payable on any date that a prepayment is made hereunder through the
date of prepayment.  Amounts prepaid on
the Revolving Loans may be reborrowed in accordance with the terms hereof.

 

(b)           Mandatory Prepayments.  If at any time after the Closing Date, the
aggregate principal amount of the outstanding Revolving Loans shall exceed the
Aggregate Revolving Committed Amount, the Company immediately shall prepay the
Loans in an amount sufficient to eliminate such excess.

 

Prepayments shall be
applied first to Alternate Base Rate Loans and then to LIBOR Rate Loans in
direct order of Interest Period maturities. 
All prepayments under this Section 2.4(b) shall be subject to
Section 2.17 and be accompanied by interest on the principal amount prepaid
through the date of prepayment.

 

(c)           Hedging Obligations Unaffected.  Any repayment or prepayment made pursuant to
this Section 2.4 shall not affect the Company’s obligation to continue to
make payments under any Hedging Agreement, which shall remain in full force and
effect notwithstanding such repayment or prepayment, subject to the terms of
such Hedging Agreement.

 

Section
2.5            Minimum Principal Amount
of Tranches.

 

All borrowings, payments
and prepayments in respect of Revolving Loans shall be in such amounts and be
made pursuant to such elections so that after giving effect thereto the
aggregate principal amount of the Revolving Loans comprising any Tranche shall
be (a) with respect to Alternate Base Rate Loans, $1,000,000 or a whole
multiple of $500,000 in excess thereof, and (ii) with respect to LIBOR
Rate Loans, $1,000,000 or a whole multiple of $500,000 in excess thereof.

 

Section 2.6            Default Rate.

 

Upon the occurrence, and
during the continuance, of an Event of Default, at the discretion of the
Required Lenders, the principal of and, to the extent permitted by law,
interest on the Loans and any other amounts owing hereunder or under the other
Credit Documents shall bear interest, payable on demand, at a per annum rate 2%
greater than the rate which would otherwise be applicable (or if no rate is
applicable, whether in respect of interest, fees or other amounts, then the
Alternate Base Rate plus the Applicable Percentage plus 2%).

 

Section
2.7            Conversion Options.

 

(a)           The Company may, in the case of
Revolving Loans, elect from time to time to convert Alternate Base Rate Loans
to LIBOR Rate Loans, by giving the Administrative Agent at least three Business
Days’ prior irrevocable written notice of such election.  A form of Notice of Conversion/Extension is
attached as Schedule 2.9. 
If the date upon which an Alternate Base

 

20

 

Rate Loan is to be converted to a LIBOR Rate Loan is not a Business
Day, then such conversion shall be made on the next succeeding Business Day and
during the period from such last day of an Interest Period to such succeeding
Business Day such Loan shall bear interest as if it were an Alternate Base Rate
Loan.  All or any part of outstanding
Alternate Base Rate Loans may be converted as provided herein, provided
that (i) no Loan may be converted into a LIBOR Rate Loan when any Default
or Event of Default has occurred and is continuing and (ii) partial
conversions shall be in an aggregate principal amount of $1,000,000 or a whole
multiple of $500,000  in excess thereof.

 

(b)           Any LIBOR Rate Loans may be continued
as such upon the expiration of an Interest Period with respect thereto by
compliance by the Company with the notice provisions contained in
Section 2.7(a); provided, that no LIBOR Rate Loan may be continued
as such when any Default or Event of Default has occurred and is continuing, in
which case such Loan shall be automatically converted to an Alternate Base Rate
Loan at the end of the applicable Interest Period with respect thereto.  If the Company shall fail to give timely
notice of an election to continue a LIBOR Rate Loan, or the continuation of
LIBOR Rate Loans is not permitted hereunder, such LIBOR Rate Loans shall be
automatically converted to Alternate Base Rate Loans at the end of the
applicable Interest Period with respect thereto.

 

Section
2.8            Computation of Interest
and Fees.

 

(a)           Interest payable hereunder with
respect to Alternate Base Rate Loans shall be calculated on the basis of a year
of 365 days (or 366 days, as applicable) for the actual days
elapsed.  All other fees, interest and
all other amounts payable hereunder shall be calculated on the basis of a
360 day year for the actual days elapsed. 
The Administrative Agent shall as soon as practicable notify the Company
and the Lenders of each determination of a LIBOR Rate on the Business Day of
the determination thereof.  Any change
in the interest rate on a Loan resulting from a change in the Alternate Base
Rate shall become effective as of the opening of business on the day on which
such change in the Alternate Base Rate shall become effective.  The Administrative Agent shall as soon as
practicable notify the Company and the Lenders of the effective date and the
amount of each such change.

 

(b)           Each determination of an interest
rate by the Administrative Agent pursuant to any provision of this Credit
Agreement shall be conclusive and binding on the Company and the Lenders in the
absence of manifest error.  The
Administrative Agent shall, at the request of the Company, deliver to the
Company a statement showing the computations used by the Administrative Agent
in determining any interest rate.

 

Section
2.9            Computations, Pro Rata
Treatment and Payments.

 

(a)           Each payment on account of an amount
due from the Company hereunder or under any other Credit Document (other than
the Three Year Credit Agreement), shall be made by the Company to the
Administrative Agent for the pro rata account of the Lenders
entitled to receive such payment as provided herein in the currency in which
such amount is denominated and in such funds as are customary at the place and
time of payment for the settlement of international payments in such
currency.  Upon request, the
Administrative Agent will give the

 

21

 

Company a statement showing the computation used in calculating such
amount, which statement shall be conclusive in the absence of manifest
error.  The obligation of the Company to
make each payment on account of such amount in the currency in which such
amount is denominated shall not be discharged or satisfied by any tender, or
any recovery pursuant to any judgment, which is expressed in or converted into
any other currency, except to the extent such tender or recovery shall result
in the actual receipt by the Administrative Agent of the full amount in the
appropriate currency payable hereunder. 
The Company agrees that its obligation to make each payment on account
of such amount in the currency in which such amount is denominated shall be
enforceable as an additional or alternative claim for recovery in such currency
of the amount (if any) by which such actual receipt shall fall short of the
full amount of such currency payable hereunder, and shall not be affected by
judgment being obtained for such amount.

 

(b)           Each borrowing of Revolving Loans and
any reduction of the Revolving Commitments shall be made pro rata
according to the respective Revolving Commitment Percentages of the
Lenders.  Each payment under this Credit
Agreement or any Note shall be applied, first, to any fees then due and owing
by the Company pursuant to Section 2.2, second, to interest then due and
owing in respect of the Notes of the Company and, third, to principal then due
and owing hereunder and under the Notes of the Company.  Each payment on account of any fees pursuant
to Section 2.2 shall be made pro rata in accordance
with the respective amounts due and owing. 
Each optional prepayment of the Loans shall be applied in accordance
with Section 2.4(a) and each mandatory prepayment of the Loans shall be
applied in accordance with Section 2.4(b). 
Payments made pursuant to Section 2.12 shall be applied in
accordance with such section.  All
payments (including prepayments) to be made by a Company on account of
principal, interest and fees shall be made without defense, set-off or
counterclaim (except as provided in Section 2.17(b)), shall be made to the
Administrative Agent for the account of the Lenders in immediately available
funds at the Administrative Agent’s Office and shall be made in Dollars not
later than 12:00 Noon on the date when due.  Any payment received after the foregoing deadlines shall be
deemed received on the next Business Day. 
The Administrative Agent shall distribute such payments to the Lenders
entitled thereto promptly upon receipt in like funds as received.  If any payment hereunder (other than
payments on the LIBOR Rate Loans) becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.  If any payment on a LIBOR Rate Loan becomes
due and payable on a day other than a Business Day, the maturity thereof shall
be extended to the next succeeding Business Day unless the result of such extension
would be to extend such payment into another calendar month, in which event
such payment shall be made on the immediately preceding Business Day.

 

(c)           Allocation of Payments After
Exercise of Remedies. 
Notwithstanding any other provisions of this Credit Agreement to the
contrary, after the exercise of remedies by the Administrative Agent or the
Lenders pursuant to Section 7.2 (or after the Revolving Commitments shall
automatically terminate and the Loans (with accrued interest thereon) and all
other amounts under the Credit Documents shall automatically become due and
payable in accordance with the terms of such Section), all amounts collected or
received by the Administrative Agent or any Lender on account of the Borrower
Obligations or any other

 

22

 

amounts outstanding under any of the Credit Documents shall be paid
over or delivered as follows:

 

FIRST,
to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable attorneys’ fees) of the Administrative Agent in
connection with enforcing the rights of the Lenders under the Credit Documents;

 

SECOND,
to the payment of any fees owed to the Administrative Agent;

 

THIRD,
to the payment of all reasonable out-of-pocket costs and expenses (including without
limitation, reasonable attorneys’ fees) of each of the Lenders in connection
with enforcing its rights under the Credit Documents or otherwise with respect
to the Borrower Obligations owing to such Lender;

 

FOURTH,
to the payment of all of the Borrower Obligations consisting of accrued fees
and interest, and including with respect to
any Hedging Agreement between the Company and any Hedging Agreement Provider,
any fees, premiums and scheduled periodic payments due under such Hedging
Agreement and any interest accrued thereon;

 

FIFTH,
to the payment of the outstanding principal
amount of the Borrower Obligations, and including with respect to any Hedging
Agreement between the Company and any Hedging Agreement Provider, to the extent
such Hedging Agreement is permitted hereunder, any breakage, termination or
other payments due under such Hedging Agreement and any interest accrued
thereon;

 

SIXTH,
to all other Borrower Obligations
and other obligations which shall have become due and payable under the Credit
Documents or otherwise and not repaid pursuant to clauses “FIRST” through
“FIFTH” above; and

 

SEVENTH,
to the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus.

 

In carrying out the
foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category;
and (ii) each of the Lenders shall receive an amount equal to its pro rata
share (based on the proportion that the then outstanding Loans held by such
Lender bears to the aggregate then outstanding Loans) of amounts available to
be applied pursuant to clauses “THIRD”, “FOURTH”, “FIFTH” and “SIXTH”
above.

 

Section
2.10         Non-Receipt of Funds by
the Administrative Agent.

 

(a)           Unless the Administrative Agent shall
have been notified in writing by a Lender prior to the date a Loan is to be
made by such Lender (which notice shall be effective upon receipt) that such
Lender does not intend to make the proceeds of such Loan available to the Administrative
Agent, the Administrative Agent may assume that such Lender has made such
proceeds available to the Administrative Agent on such date, and the
Administrative Agent may

 

23

 

in reliance upon such assumption
(but shall not be required to) make available to the Company a corresponding
amount.  If such corresponding amount is
not in fact made available to the Administrative Agent, the Administrative
Agent shall be able to recover such corresponding amount from such Lender.  If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent will promptly notify the Company, and the Company
shall immediately pay such corresponding amount to the Administrative
Agent.  The Administrative Agent shall
also be entitled to recover from the Lender or the Company, as the case may be,
interest on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the
Company to the date such corresponding amount is recovered by the
Administrative Agent at a per annum rate equal to (i) from the Company at
the applicable rate for the applicable borrowing pursuant to the Notice of Borrowing
and (ii) from a Lender at the Federal Funds Effective Rate.

 

(b)           Unless the Administrative Agent shall
have been notified in writing by the Company, prior to the date on which any
payment is due from the Company hereunder (which notice shall be effective upon
receipt) that the Company does not intend to make such payment, the
Administrative Agent may assume that the Company has made such payment when
due, and the Administrative Agent may in reliance upon such assumption (but
shall not be required to) make available to each Lender on such payment date an
amount equal to the portion of such assumed payment to which such Lender is
entitled hereunder, and if the Company has not in fact made such payment to the
Administrative Agent, such Lender shall, on demand, repay to the Administrative
Agent the amount made available to such Lender.  If such amount is repaid to the Administrative Agent on a date
after the date such amount was made available to such Lender, such Lender shall
pay to the Administrative Agent on demand interest on such amount in respect of
each day from the date such amount was made available by the Administrative
Agent to such Lender to the date such amount is recovered by the Administrative
Agent at a per annum rate equal to the Federal Funds Effective Rate.

 

(c)           A certificate of the Administrative
Agent submitted to the Company or any Lender with respect to any amount owing
under this Section 2.10 shall be conclusive in the absence of manifest
error.

 

Section
2.11         Inability to Determine
Interest Rate.

 

Notwithstanding any other
provision of this Credit Agreement, if (i) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding
absent manifest error) that, by reason of circumstances affecting the relevant
market, reasonable and adequate means do not exist for ascertaining LIBOR for
such Interest Period, or (ii) the Required Lenders shall reasonably
determine (which determination shall be conclusive and binding absent manifest
error) that the LIBOR Rate does not adequately and fairly reflect the cost to
such Lenders of funding LIBOR Rate Loans that a Company has requested be
outstanding as a LIBOR Tranche during such Interest Period, the Administrative
Agent shall forthwith give telephone notice of such determination, confirmed in
writing, to the Company, and the Lenders at least two Business Days prior to
the first day of such Interest Period. 
If such notice is given (a) any affected LIBOR Rate Loans requested
to be made on the first day of such Interest Period

 

24

 

shall be made, at the sole option of the Company, in Dollars as
Alternate Base Rate Loans and (b) any affected Loans that were to have
been converted on the first day of such Interest Period to or continued as
LIBOR Rate Loans shall be converted to or continued, at the sole option of the
Company, in Dollars as Alternate Base Rate Loans.  Until any such notice has been withdrawn by the Administrative
Agent, no further Loans shall be made as, continued as, or converted into,
LIBOR Rate Loans for the Interest Periods so affected.

 

Section 2.12         Illegality.

 

(a)           Notwithstanding any other provision
herein, if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof by the relevant Governmental Authority
shall make it unlawful for any Lender or its LIBOR Lending Office to make or
maintain LIBOR Rate Loans as contemplated by this Credit Agreement (any such
affected LIBOR Rate Loans, the “Affected Loans”), then such Lender,
together with Lenders giving notice under Section 3.8 and 3.10, shall
be an “Affected Lender” and by written notice to the Company and to the
Administrative Agent:

 

(i)            may declare that Affected Loans will
not thereafter (for the duration of such unlawfulness) be made by such Lender
hereunder, whereupon any request for an Affected Loan shall, as to such Lender
only be deemed a request for a Alternate Base Rate Loan (unless it should also
be illegal for the Affected Lender to provide a Base Rate Loan, in which case
such Loan shall bear interest at a commensurate rate to be agreed upon by the
Administrative Agent and the Affected Lender, and so long as no Event of
Default shall have occurred and be continuing, the Company), unless such declaration
shall be subsequently withdrawn; and

 

(ii)           such Lender may require that all
outstanding Affected Loans, as the case may be, made by it be converted to
Alternate Base Rate Loans, in which event all such Affected Loans shall be
automatically converted to Alternate Base Rate Loans as of the effective date
of such notice as provided in paragraph (b) below.

 

In the event any Lender
shall exercise its rights under (i) or (ii) above with respect to any
Affected Loans, all payments and prepayments of principal which would otherwise
have been applied to repay the Affected Loans that would have been made by such
Lender or the converted Affected Loans of such Lender shall instead be applied
to repay the Alternate Base Rate Loans made by such Lender in lieu of, or
resulting from the conversion, of such Affected Loans.

 

(b)           For purposes of this
Section 2.12, a notice to the Company by any Lender shall be effective as
to each such Affected Loan, if lawful, on the last day of the Interest Period
currently applicable to such Affected Loan; in all other cases such notice
shall be effective on the date of receipt by the Company.

 

25

 

Section
2.13         Deposits Unavailable;
Impractibility.

 

If the Company has
notified the Administrative Agent of its intention to borrow a LIBOR Loan for
an Interest Period and the Administrative Agent determines (which determination
shall be conclusive and binding on the Company) that

 

(a)           deposits of the necessary amount  for such Interest Period are not available
to the Lenders in the London interbank market or, by reason of circumstances
affecting such market, adequate and reasonable means do not exist for
ascertaining LIBOR for such Interest Period; or

 

(b)           the making or funding of LIBOR Loans
has become impracticable as a result of any event occurring after the date of
this Credit Agreement which, in the opinion of the Lenders, materially and
adversely affects such Loans or the London interbank market;

 

then any notice of a
LIBOR Loan previously given by the Company and not yet borrowed shall be deemed
to be a notice to make a Base Rate Loan.

 

Section 2.14         Increased Cost.

 

The Company agrees to
reimburse any Lender for any increase in the cost to such Lender of, or any
reduction in the amount of any sum receivable by such Lender in respect of,
making or maintaining any LIBOR Rate Loans relating to the adoption of any law,
rule or regulation or any change therein or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration
thereof.  The additional amount required
to compensate such Lender for such increased cost or reduced amount shall be payable
by the Company to such Lender within five days of the Company’s receipt of
written notice from such Lender specifying such increased cost or reduced
amount and the amount required to compensate such Lender therefor, which notice
shall, in the absence of manifest error, be conclusive and binding on the
Company.  In determining such additional
amount, the applicable Lender may use reasonable averaging, attribution and
allocation methods.  The agreements in
this Section 2.14 shall survive the termination of this Credit Agreement
and payment of the Borrower Obligations.

 

Section
2.15         Increased Capital Costs.

 

If any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any court, central bank, regulator
or other Governmental Authority affects or would affect the amount of capital
required or expected to be maintained by any Lender or any entity controlling
such Lender, and such Lender determines (in its sole and absolute discretion)
that the rate of return on its or such controlling entity’s capital as a
consequence of the Loans made by such Lender or the commitment hereunder is
reduced to a level below that which the Lender or such controlling entity could
have achieved but for the occurrence of any such circumstance, then, in any
such case, upon notice from time to time by any Lender to the Company, the
Company shall immediately pay directly to such Lender additional amounts
sufficient to compensate such Lender or such controlling entity for such

 

26

 

reduction in rate of return.  A
statement of such Lender as to any such additional amount or amounts (including
calculations thereof in reasonable detail) shall, in the absence of manifest
error, be conclusive and binding on the Company.  In determining such amount, the applicable Lender may use
reasonable averaging, attribution and allocation methods.  The agreements in this Section 2.15
shall survive the termination of this Credit Agreement and payment of the
Borrower Obligations.

 

Section 2.16         Funding Losses.

 

The Company will
indemnify any Lender upon demand against any loss or expense which such Lender
may sustain or incur (including, without limitation, any loss or expense
sustained or incurred in obtaining, liquidating or employing deposits or other
funds acquired to effect, fund or maintain any Loan) as a consequence of (i)
any failure of the Company to make any payment when due of any amount due
hereunder, (ii) any failure of the Company to borrow a Loan on a date specified
therefor in a notice thereof, or (iii) any payment (including any payment upon
such Lender’s acceleration of the Loans) or prepayment of any LIBOR Loan on a
date other than the last day of the Interest Period for such Loan.

 

Section 2.17         Taxes.

 

(a)           All payments made by the Company
hereunder or under any Note shall be, except as provided in Section 2.17(b),
made free and clear of, and without deduction or withholding for, any and all
present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any Governmental
Authority or by any political subdivision or taxing authority thereof or
therein with respect to such payments (but excluding any tax imposed on or
measured by the net income or profits or any franchise or other tax in lieu
thereof (including branch profits or similar taxes) of a Lender) and all
interest, penalties or similar liabilities with respect thereto (all such
non-excluded taxes, levies, imposts, duties, fees, assessments or other charges
being referred to collectively as “Taxes”).  If any Taxes are so levied or imposed, the Company agrees to pay
the full amount of such Taxes, and such additional amounts as may be necessary
so that every payment of all amounts due under this Credit Agreement or under
any Note, after withholding or deduction for or on account of any Taxes, will
not be less than the amount provided for herein or in such Note.  The Company will furnish to the
Administrative Agent as soon as practicable after the date the payment of any
Taxes is due pursuant to applicable law certified copies (to the extent
reasonably available and required by law) of tax receipts evidencing such
payment by the Company.  The Company
agrees to indemnify and hold harmless each Lender, and reimburse such Lender
upon its written request, for the amount of any Taxes so levied or imposed and
paid by such Lender.

 

(b)           Each Lender that is not a
United States person (as such term is defined in Section 7701(a)(30)
of the Code) agrees to deliver to the Company and the Administrative Agent on
or prior to the Closing Date, or in the case of a Lender that is an assignee or
transferee of an interest under this Credit Agreement pursuant to
Section 9.5(g) (unless the respective Lender was already a Lender
hereunder immediately prior to such assignment or transfer), on the date of
such assignment or transfer to such Lender two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or any
successor forms prescribed by the

 

27

 

Internal Revenue Service) certifying such Lender’s entitlement to a
complete exemption from United States withholding tax with respect to
payments to be made under this Credit Agreement and under any Note.  Each other Lender shall provide the Company
with two accurate and complete original signed copies of Internal Revenue Form
W-9 or any successor form prescribed by the Internal Revenue Service.  In addition, each Lender agrees that it will
deliver upon the Company’s request updated versions of the foregoing, as
applicable, whenever the previous certification has become obsolete or
inaccurate in any material respect, together with such other forms as may be
required in order to confirm or establish the entitlement of such Lender to a
continued exemption from or reduction in United States withholding tax
with respect to payments under this Credit Agreement and any Note.  Notwithstanding anything to the contrary
contained in Section 2.17(a), but subject to the immediately succeeding
sentence, (A) the Company shall be entitled, to the extent it is required
to do so by law, to deduct or withhold Taxes imposed by the United States
(or any political subdivision or taxing authority thereof or therein) from
interest, fees or other amounts payable hereunder for the account of any Lender
which is not a United States person (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. Federal income tax purposes to the extent that such
Lender has not provided to the Company U.S. Internal Revenue Service Forms that
establish a complete exemption from such deduction or withholding and
(B) the Company shall not be obligated pursuant to Section 2.17(a) hereof
to gross-up payments to be made to a Lender in respect of Taxes imposed by the
United States if such Lender has not provided to the Company the Internal
Revenue Service Forms required to be provided to the Company pursuant to this
Section 2.17(b).  Notwithstanding
anything to the contrary contained in the preceding sentence or elsewhere in
this Section 2.17, the Company agrees to pay additional amounts and to
indemnify each Lender in the manner set forth in Section 2.17(a) (without
regard to the identity of the jurisdiction requiring the deduction or
withholding) in respect of any amounts deducted or withheld by it as described
in the immediately preceding sentence as a result of any changes after the
Closing Date in any applicable law, treaty, governmental rule, regulation,
guideline or order, or in the interpretation thereof, relating to the deducting
or withholding of Taxes.

 

(c)           Each Lender agrees to use reasonable
efforts (including reasonable efforts to change its Domestic Lending Office or
LIBOR Lending Office, as the case may be) to avoid or to minimize any amounts
which might otherwise be payable pursuant to this Section; provided, however,
that such efforts shall not cause the imposition on such Lender of any additional
costs or legal or regulatory burdens deemed by such Lender in its sole
discretion to be material.

 

(d)           If the Company pays any additional
amount pursuant to this Section 2.17 with respect to a Lender, such Lender
shall use commercially reasonable efforts to obtain a refund of tax or credit
against its tax liabilities on account of such payment.  In the event that such Lender receives such
a refund or credit, such Lender shall pay to the Company an amount that such
Lender reasonably determines is equal to the net tax benefit obtained by such
Lender as a result of such payment by the Company.  In the event that no refund or credit is obtained with respect to
a Company’s payments to such Lender pursuant to this Section 2.17, then such
Lender shall upon request provide a certification that such Lender has not
received a refund or credit for such payments. 
Nothing contained in this Section 2.17 shall require a Lender to
disclose or detail the basis of its calculation of the amount of any tax
benefit or any other amount or the basis of its

 

28

 

determination referred to in the proviso to the first sentence of this
Section 2.17(d) to the Company or any other party.

 

(e)           If any Lender entitled to additional compensation
under any of the foregoing provisions of this Section 2.17 shall fail to
designate a different Applicable Lending Office as provided in subsection (c)
of this Section 2.17 promptly after receiving notice from Company, then Company
may cause such Lender to (and, if Company so demands, such Lender shall) assign
all of its rights and obligations under this Credit Agreement or any Note to
one or more other persons identified by Company and reasonably acceptable to
the Administrative Agent.

 

(f)            To the extent that no Default or
Event of Default has occurred or is continuing, no Lender who becomes a party
to this Credit Agreement by accepting an assignment of an interest herein from
another Lender shall be entitled to receive any additional amounts pursuant to
this Section 2.17 in excess of the amounts that would have been payable to the
assignor Lender prior to such assignment.

 

(g)           The agreements in this Section 2.17
shall survive the termination of this Credit Agreement and the payment of the Borrower Obligations.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

To induce the Lenders to
enter into this Credit Agreement and to make the Extensions of Credit herein
provided for, the Company hereby represents and warrants to the Administrative
Agent and to each Lender that:

 

Section 3.1            Existence.

 

The Company is a corporation duly formed,
validly existing and in good standing under the laws of its jurisdiction of
incorporation, has all requisite power and authority, and the legal right, to
own, operate and lease its properties and to carry on the business in which it
is engaged or presently proposes to engage, and is duly qualified or licensed
under the laws of each jurisdiction where it is required to be so qualified or
licensed except where the failure to be so qualified could not, individually or
in the aggregate, reasonably be expected to cause a Material Adverse Change,
and is in compliance with all Requirements of Law except to the extent that
failure to comply therewith could not, individually or in the aggregate,
reasonably be expected to cause a Material Adverse Change.

 

Section
3.2            Power and Authorization;
Enforceable Obligations.

 

The Company has all requisite power and
authority to execute, deliver and perform this Credit Agreement and the other
Credit Documents to which it is a party and to borrow the Loans hereunder.  The Company has taken all necessary
corporate and legal action to authorize the borrowings hereunder on the terms
and conditions of this Credit Agreement and the other Credit Documents to which
it is a party and to authorize the execution, delivery and performance of this

 

29

 

Credit Agreement and the other Credit Documents to which it is a
party.  Each of the Credit Agreement and
the other Credit Documents have been executed and delivered by a duly
authorized officer of the Company.  This
Credit Agreement constitutes, and upon execution thereof, each other Credit
Document will constitute a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting creditors’ rights generally and
except as enforceability may be limited by general principles of equity and an
implied covenant of good faith.

 

Section
3.3            No Legal Bar to Loans.

 

The execution, delivery and performance of
this Credit Agreement and the other Credit Documents by the Company will not
violate any provision of any existing law, treaty or regulation or of any
order, judgment, award or decree of any court, arbitrator or Governmental
Authority or of any Requirement of Law or Contractual Obligation applicable to
the Company and will not result in the creation or imposition of any Lien on
any of the material properties or assets of the Company pursuant to the
provisions of any such Requirement of Law or Contractual Obligation; except, to
the extent such violation or Lien could not individually or in the aggregate,
reasonably be expected to cause a Material Adverse Change.

 

Section
3.4            Financial Information;
Disclosure, etc.

 

The Periodical SEC Reports of the Company
and the related statements of income, shareholders’ equity and cash flows for
any applicable period, copies of which have heretofore been furnished to the
Administrative Agent and the Lenders, present fairly in all material respects
the financial condition of the Company as of the end of such period.  All financial statements included therein,
including the related schedules and notes, if any, have been prepared in
accordance with GAAP applied consistently throughout the periods involved,
except as set forth in the notes thereto (subject, in the case of any interim
financial statements, to normal year-end adjustments).  Since December 31, 2003, there has been
no Material Adverse Change.

 

Section 3.5            Licenses, Permits, etc.

 

No material authorizations, licenses and
permits of any Governmental Authority are required or necessary for the conduct
of the business of the Company as now conducted or proposed to be conducted by
it except for such authorizations, licenses and permits (i) as have been
obtained and are in full force and effect, or (ii) the failure to have obtained
which could not reasonably be expected to result, either individually or in the
aggregate, in a Material Adverse Change.

 

Section
3.6            Tax Returns and Payments.

 

The Company has filed all tax returns and
information statements required by law to be filed and has paid all taxes,
assessments and other governmental charges levied upon or in respect of any of
its properties, assets, income, licenses or franchises, other than those not
yet delinquent, those not substantial in aggregate amount, those being or about
to be contested and

 

30

 

those the failure of which to pay could not reasonably be
expected to cause a Material Adverse Change. 
The charges, accruals and reserves on the books of the Company in
respect of its taxes are adequate in the opinion of the Company, and the
Company knows of no unpaid assessment for additional taxes material in amount
or of any reasonable basis therefor.  No
tax liens have been filed, and, to the knowledge of the Company, no claims are
being asserted with respect to any such taxes, fees or other charges.

 

Section
3.7            Title to Properties;
Liens.

 

The Company and its Subsidiaries have
sufficient title to all of its material properties and assets for the conduct
of its respective business as presently conducted and proposed to be conducted
by them.  The Company and its
Subsidiaries enjoy quiet possession under all material real property leases to
which it is a party as lessee, and all of its material leases are valid,
subsisting and in full force and effect.

 

Section 3.8            Litigation, etc.

 

Except as disclosed in the Periodical SEC
Reports of the Company or in any report on Form 8-K filed by the Company with
the SEC, there is no action, proceeding or investigation pending or, to the
knowledge of the Company, threatened (or any basis therefor known to the
Company) which questions the validity of this Credit Agreement or the other
Credit Documents executed in connection herewith, or any action taken or to be
taken pursuant hereto or thereto, or which could reasonably be expected to
result, individually or in the aggregate, in a Material Adverse Change.

 

Section 3.9            No Default.

 

No Default or Event of Default has occurred
and is continuing.  Neither the Company
nor any of its Subsidiaries is in violation of any Requirement of Law or any
term of any Contractual Obligation applicable to the Company or such
Subsidiary, the violation of which could reasonably be expected to cause a
Material Adverse Change.  Without
limiting the scope of the foregoing, the Company and its Subsidiaries are in
compliance in all material respects with all Environmental Laws, the violation
of which could be reasonably expected to cause a Material Adverse Change.

 

Section
3.10         Governmental and Other
Consents.

 

The Company is not required to obtain any order,
consent, approval or authorization of or to make any declaration or filing
with, any Governmental Authority or any other Person in connection with the
execution and delivery, of and performance under, this Credit Agreement and the
other Credit Documents, unless the failure to do so could not reasonably be
expected to cause a Material Adverse Change.

 

31

 

Section 3.11         Regulation U, etc.

 

Except for systematic stock repurchase
programs from time to time conducted by the Company, none of the proceeds of
the Loans will be used, directly or indirectly, by the Company for the purpose
of purchasing or carrying, or for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry, any margin
stock or for any other purpose which might constitute the transactions
contemplated hereby a “purpose credit” within the meaning of said Regulation U,
or cause this Agreement to violate Regulation T, Regulation U, Regulation X, or
any other regulation of the Board of Governors of The Federal Reserve System or
the Exchange Act.

 

Section
3.12         Investment Company Act;
Other Regulations.

 

The Company is not an “investment company”
or a company “controlled” by an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended. 
The Company is not subject to regulation under any federal, state or
other statute or regulation which limits its ability to incur Indebtedness.

 

Section
3.13         Compliance with ERISA.

 

Each Plan is in substantial compliance with
ERISA and the Code; no Reportable Event has occurred with respect to a Plan; no
Plan is insolvent or in reorganization; no Plan has an unfunded current
liability within the meaning of Section 412(1)(8) of the Code; no Plan has an
accumulated or waived funding deficiency, has permitted decreases in its
funding standard account or has applied for a waiver of the minimum funding
standard or an extension of any amortization period within the meaning of
Section 412 of the Code; all contributions required to be made with respect to
a Plan have been timely made, neither the Company nor any ERISA Affiliate has
incurred any material liability to or on account of a Plan pursuant to Section
409, 502(i), 502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA
or Section 401(a)(29), 4971, 4975 or 4980 of the Code or reasonably expects to
incur any material liability (including any indirect, contingent or secondary
liability) under any of the foregoing Sections with respect to any Plan (other
than liabilities of any ERISA Affiliate which could not, by operation of law or
otherwise, become a liability of the Company); no proceedings have been
instituted to terminate, or to appoint a trustee to administer, any Plan; no
condition exists which presents a material risk to the Company or any ERISA
Affiliate of incurring a liability to or on account of a Plan pursuant to the
foregoing provisions of ERISA and the Code; using actuarial assumptions and
computation methods consistent with Part I of Subtitle E of Title IV of ERISA,
the aggregate liabilities of the Company and its ERISA Affiliates to all Plans
which are multi-employer plans (as defined in Section 4001(a)(3) of ERISA) in
the event of a complete withdrawal therefrom, as of the close of the most
recent fiscal year of each such Plan ended prior to the Closing Date would not
result in a Material Adverse Change on the financial condition of the Company;
and no lien imposed under the Code or ERISA on the assets of the Company or any
ERISA Affiliate exists or is likely to arise on account of any Plan.  Anything in this Section 3.13 to the
contrary notwithstanding, the representations herein are qualified by the
uncertainty created by the 2003 decision of the District Court for the Southern
District of Illinois in Cooper v. IBM Personal Pension Plan that cash
balance pensions plans violate ERISA; however, there

 

32

 

are no actions, suits or claims pending or, to the best
knowledge of the Company, threatened or anticipated (other than routine claims
for benefits) against the Company or the cash balance pension plan maintained
by the Company.

 

Section
3.14         Environmental Matters.

 

To the best knowledge of the Company,
except as disclosed in the Periodical SEC Reports of the Company or in any
report on Form 8-K filed by the Company with the SEC, each of the
representations and warranties set for the in paragraphs (a) through (e) of
this subsection is true and correct with respect to each parcel of real
property owned or operated (within the meaning of any Environmental Law) by the
Company or any of the Company’s Subsidiaries (the “Properties”), except
to the extent that the facts and circumstances giving rise to any such failure
to be so true and correct could not, individually or in the aggregate,  reasonably be expected to cause a Material
Adverse Change:

 

(a)           The Properties do not contain, and
have not previously contained, in, on, or under, including, without limitation,
the soil and groundwater thereunder, any Hazardous Materials in violation of
any Environmental Laws.

 

(b)           The Properties and all operations and
facilities at the Properties are in compliance with all Environmental Laws, and
there is no Hazardous Materials contamination or violation of any Environmental
Law which could interfere with the continued operation of any of the Properties
or impair the fair salable value of any thereof.

 

(c)           Neither the Company nor any
Subsidiary has received any complaint, notice of violation, alleged violation,
investigation or advisory action or of potential liability or of potential
responsibility regarding environmental protection matters or permit compliance
with regard to the Properties, nor is the Company aware that any Governmental
Authority is contemplating delivering to the Company any such notice.

 

(d)           Hazardous Materials have not been
generated, treated, stored, disposed of, at, on or under any of the Properties,
nor have any Hazardous Materials been transferred from the Properties to any
other location in violation of any Environmental Laws.

 

(e)           There are no governmental,
administrative actions or judicial proceedings pending or contemplated under
any Environmental Laws to which the Company is or will be named as a party with
respect to the Properties, nor are there any consent decrees or other decrees,
consent orders, administrative orders or other orders, or other administrative
or judicial requirements outstanding under any Environmental Law with respect
to any of the Properties.

 

33

 

ARTICLE IV

CONDITIONS PRECEDENT

 

Section
4.1            Conditions to Closing
Date and Initial Revolving Loans.

 

The obligation of each
Lender to make the initial Revolving Loans on the Closing Date is subject to
the prior or concurrent satisfaction of the following conditions:

 

(a)           Execution of Agreement.  The Administrative Agent shall have received
(i) counterparts of this Credit Agreement, (ii) for the account of
each Lender, Revolving Notes and (iii) counterparts of the Three Year
Credit Agreement, in each case conforming to the requirements of this Credit
Agreement and executed by a duly authorized officer of each party thereto.

 

(b)           Authority
Documents.  The Administrative Agent
shall have received the following:

 

(i)            Articles of Incorporation.  Copies of the articles of incorporation or
other charter documents, as applicable, of the Company certified (A) by a
secretary or assistant secretary of the Company (pursuant to a secretary’s
certificate in substantially the form of Schedule 4.1(b) attached
hereto) as of the Closing Date to be true and correct and in force and effect
as of such date, and (B) to be true and complete as of a recent date by the
appropriate Governmental Authority of the state of its incorporation or organization,
as applicable.

 

(ii)           Resolutions.  Copies of resolutions of the board of
directors or comparable managing body of the Company approving and adopting the
Credit Documents, the transactions contemplated therein and authorizing
execution and delivery thereof, certified by a secretary or assistant secretary
of the Company (pursuant to a secretary’s certificate in substantially the form
of Schedule 4.1(b) attached hereto) as of the Closing Date to be
true and correct and in force and effect as of such date.

 

(iii)          Bylaws.  A copy of the bylaws or comparable operating
agreement of the Company certified by a secretary or assistant secretary of the
Company (pursuant to a secretary’s certificate in substantially the form of Schedule 4.1(b)
attached hereto) as of the Closing Date to be true and correct and in force and
effect as of such date.

 

(iv)          Good Standing.  Copies of (i) certificates of good
standing, existence or its equivalent with respect to the Company certified as
of a recent date by the appropriate Governmental Authorities of the state of
incorporation and each other state in which the failure to so qualify and be in
good standing could reasonably be expected to result in a Material Adverse
Change on the business or operations of the Company and its Subsidiaries in
such state and (ii) a certificate

 

34

 

indicating payment of all
corporate franchise taxes certified as of a recent date by the appropriate
governmental taxing authorities.

 

(v)           Incumbency.  An incumbency certificate of the Company
certified by a secretary or assistant secretary (pursuant to a secretary’s
certificate in substantially the form of Schedule 4.1(b) attached
hereto) to be true and correct as of the Closing Date.

 

(c)           Legal
Opinion of Counsel. The Administrative Agent shall have received an opinion
of counsel for the Company, dated the Closing Date and addressed to the
Administrative Agent and the Lenders, which opinion shall provide that the
Company is in compliance with (i) all corporate instruments and (ii) in all
material respects, Contractual Obligations, in each case, on the Closing Date
after giving effect to initial Extensions of Credit hereunder.

 

(d)           Officer’s
Certificate.  The Administrative
Agent shall have received a certificate executed by a Responsible Officer of
the Company as of the Closing Date stating that immediately after giving effect
to this Credit Agreement, the other Credit Documents, and all the transactions
contemplated therein to occur on such date, (i) no Default or Event of
Default exists, (ii) all representations and warranties contained herein
and in the other Credit Documents are true and correct, and (iii) the
Company is in compliance with each of the financial covenants set forth in
Section 6.6, as demonstrated by covenant calculations on a schedule attached
thereto.

 

(e)           Account
Designation Letter.  The
Administrative Agent shall have received the executed Account Designation
Letter in the form of Schedule 1.1 hereto.

 

(f)            Solvency Certificate.  The Administrative Agent shall have received
an officer’s certificate for the Company prepared by the Responsible Officer as
to the financial condition, solvency and related matters of the Company, in
each case after giving effect to the initial borrowings under the Credit
Documents, in substantially the form of Schedule 4.1(f) hereto.

 

(g)           Material Adverse Change.  No Material Adverse Change shall have
occurred since December 31, 2003.

 

(h)           Financial Statements.  The Administrative Agent shall have received
copies of the financial statements referred to in Section 3.4 hereof, each
in form and substance satisfactory to it.

 

(i)            Fees.  The Administrative Agent and the Lenders
shall have received all fees, if any, owing pursuant to the Fee Letter and
Section 2.2.

 

(j)            Termination
of Existing Indebtedness.  All
existing Indebtedness for borrowed money of the Company and the Company’s
Subsidiaries with respect to the Bilateral Credit Agreements shall have been
(or contemporaneously with funding will be)

 

35

 

repaid in full and
all commitments thereunder shall have been terminated and all Liens relating
thereto, if any, shall have been terminated.

 

(k)           Corporate
Structure.  The corporate capital
and ownership structure of the Company shall be as described in the Form 10-K
of the Company for the year ended December 31, 2003.  The Administrative Agent and the Lenders shall be satisfied with
the corporate and capital structure of the Company and its Material Subsidiaries.

 

Section
4.2            Conditions to All
Extensions of Credit.

 

The obligation of
each Lender to make any Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent on the date of making such
Extension of Credit:

 

(a)           Representations
and Warranties.  The representations
and warranties made by the Company herein, in the other Credit Documents or
which are contained in any certificate furnished at any time under or in
connection herewith shall be true and correct on and as of the date of such
Extension of Credit as if made on and as of such date, unless stated to relate
solely to an earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date.

 

(b)           No
Default or Event of Default.  No
Default or Event of Default shall have occurred and be continuing on such date
or after giving effect to the Extension of Credit to be made on such date
unless such Default or Event of Default shall have been waived in accordance
with this Credit Agreement or other applicable instrument or agreement.

 

(c)           Compliance
with Commitments.  Immediately after
giving effect to the making of any such Extension of Credit (and the
application of the proceeds thereof), the sum of outstanding Revolving Loans shall
not exceed the Aggregate Revolving Committed Amount.

 

(d)           Additional
Conditions to Revolving Loans.  If a
Revolving Loan is requested, all conditions set forth in Section 2.1 shall
have been satisfied.

 

Each request for
an Extension of Credit and each acceptance by a Company of any such Extension
of Credit shall be deemed to constitute a representation by the Company as to
the matters set forth in paragraphs (a) and (b) of this Section 4.2.

 

 

ARTICLE V

AFFIRMATIVE COVENANTS

 

The Company hereby
covenants and agrees that on the Closing Date, and thereafter for so long as
this Credit Agreement is in effect and until the Revolving Commitments have
terminated,

 

36

 

no Note remains
outstanding and unpaid and the Borrower
Obligations, together with interest, Commitment Fee, are paid in full,
the Company shall:

 

Section
5.1            Financial Information.

 

Furnish to the Administrative Agent and
each of the Lenders:

 

(a)           As soon as available and in any event
within 45 days after the end of each of the first three quarters of each fiscal
year, the Company’s Form 10-Q containing the consolidated balance sheets of the
Company and its Subsidiaries as at the end of such quarterly fiscal period and
statements of earnings and cash flow of the Company and its Subsidiaries on a
consolidated basis for such period, certified by a Responsible Officer of the
Company;

 

(b)           as soon as available and in any event
within 90 days after the end of each fiscal year of the Company, the Company’s Form
10-K containing a copy of the annual audit report for such fiscal year for the
Company and its Subsidiaries on a consolidated basis, including balance sheets
of the Company and its Subsidiaries on a consolidated basis as of the end of
such fiscal year and statements of earnings and cash flow on a consolidated
basis for such fiscal year, in each case certified in a manner acceptable to
the Administrative Agent by independent public accountants acceptable to the
Administrative Agent;

 

(c)           concurrently with the delivery of the
financial statements described in paragraphs (a) and (b), a certificate from
the Responsible Officer of the Company certifying whether there exists any
Default or Event of Default, and setting forth the Leverage Ratio and the Fixed
Charge Coverage Ratio as of the end of the period covered by such financial
statements;

 

(d)           promptly, copies of all financial
statements and reports that the Company sends to its shareholders, and copies
of all financial statements and regular, periodical or special reports
(including Forms 10-K, 10-Q and 8-K) that the Company or any Subsidiary may
make to, or file with, the SEC; and

 

(e)           such other information with respect
to the condition or operations, financial or otherwise, of the Company and its
Subsidiaries as the Administrative Agent or any Lender may from time to time
reasonably request.

 

Any of the above documents that are filed
electronically by the Company with the SEC shall be deemed to have been
provided to the Administrative Agent and the Lenders on the date the same are
available on EDGAR.

 

Section 5.2            Use of Proceeds.

 

Use the proceeds of Loans for the general
corporate purposes of the Company, including, without limitation, the
repurchase of the Company’s shares.

 

37

 

Section
5.3            Payment of Borrower
Obligations.

 

If and to the extent the failure to do so
could reasonably be expected to cause a Material Adverse Change, pay, discharge
or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its Indebtedness and other obligations of whatever nature,
except where the amount or validity thereof is currently being contested in
good faith by appropriate proceedings and reserves in conformity with GAAP with
respect thereto have been provided on the books of the Company; and cause each
of its Subsidiaries so to do.

 

Section
5.4            Conduct of Business and
Maintenance of Existence.

 

(a)           Continue to engage in business of the
same general type as now conducted by it and preserve, renew and keep in full
force and effect its corporate existence and take all reasonable action to
maintain all rights, privileges and franchises necessary or desirable in the
normal conduct of its business (except to the extent that failure to do so
could not individually or in the aggregate reasonably be expected to cause a
Material Adverse Change).

 

(b)           Comply with all Contractual
Obligations and Requirements of Law except to the extent that failure to comply
therewith could not individually or in the aggregate, reasonably be expected to
cause a Material Adverse Change.

 

Section 5.5            Insurance.

 

Maintain on a consolidated basis, adequate
insurance coverage on all its properties, with financially sound and reputable
insurance companies.

 

Section 5.6            Books and Records.

 

Keep proper books of records and account in
which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities.

 

Section 5.7            Notices.

 

Promptly, upon gaining actual knowledge
thereof, give notice to the Administrative Agent and each Lender of

 

(a)           the occurrence of any Default or
Event of Default, and

 

(b)           any Material Adverse Change;
provided, however, that the Company shall not be required to give notice under
this paragraph (b) unless such change requires the Company to file a
report on Form 8-K with the SEC.

 

38

 

Each notice pursuant to this subsection
shall be accompanied by a statement of a Responsible Officer setting forth
details of the occurrence referred to therein and stating what action (if any)
the Company proposes to take with respect thereto.

 

Section 5.8            Payment of Taxes.

 

If and to the extent the failure to do any
of the following could, individually or in the aggregate, reasonably be
expected to cause a Material Adverse Change, pay and discharge, and cause each
Subsidiary to pay and discharge, prior to their becoming delinquent all taxes,
assessments and other governmental charges or levies imposed upon it or its
income or upon any of its property or assets, or upon any part thereof, as well
as all lawful claims of any kind (including claims for labor, materials and
supplies) which, if unpaid, might by law become a Lien upon its property;
provided, that neither the Company nor any Subsidiary will be required to pay
any such tax, assessment, charge, levy or claim if the amount, applicability or
validity thereof shall be contested in good faith by appropriate proceedings or
other appropriate actions diligently conducted and if the Company or any
Subsidiary shall have set aside on its books such reserves, if any, with
respect thereto as are required by GAAP and deemed appropriate by the Company
and its independent public accountants.

 

Section
5.9            Further Assurances.

 

From time to time hereafter, execute and
deliver, or cause to be executed and delivered, such additional instruments,
certificates or documents, and will take all such actions, as the
Administrative Agent or any Lender may reasonably request, for the purposes of
implementing or effectuating the provisions of the Credit Documents.  Upon the exercise by the Administrative
Agent or any Lender of any power, right, privileges or remedy pursuant to the
Credit Documents, which requires any consent, approval, recording,
qualification or authorization of any Governmental Authority, the Company will
execute and deliver, or will cause the execution and delivery of, all
applications, certifications, instruments and other documents and papers that
the Administrative Agent or any Lender may be required to obtain from the
Company for such governmental consent, approval, recording, qualification or
authorization.

 

Section
5.10         No Dividend Restrictions.

 

Neither the Company nor any wholly owned
Material Subsidiaries are a party to, nor will the Company or any wholly owned
Material Subsidiaries become a party to any agreement prohibiting or
restricting the payment of dividends.

 

ARTICLE VI

NEGATIVE COVENANTS

 

The Company hereby
covenants and agrees that on the Closing Date, and thereafter for so long as
this Credit Agreement is in effect and until the Revolving Commitments have
terminated, no Note remains outstanding and unpaid and the Borrower
Obligations, together with interest,

 

39

 

Commitment Fee and all
other amounts owing to the Administrative Agent or any Lender hereunder, are
paid in full that:

 

Section
6.1            Limitation on Liens.

 

The Company will not, nor will it permit any
Subsidiary to, create, assume, incur or suffer to exist any Lien on any asset
now owned or hereafter acquired by it, except for the following:

 

(a)           Liens existing on the date hereof,
which are reflected in the balance sheet referred to in Section 3.4 hereof or
the footnotes thereto, and renewals, extensions and continuations thereof,
provided that such renewals, extensions and continuations shall not (i)
increase the Indebtedness secured thereby or (ii) extend the coverage thereof
beyond the original coverage of such Lien;

 

(b)           Liens for taxes, assessments or other
governmental charges not yet delinquent or being contested in good faith and by
appropriate proceedings; Liens in connection with workers’ compensation,
unemployment insurance or other social security obligations; Liens securing the
performance of bids, tenders, contracts, surety and appeal bonds; Liens to
secure progress or partial payments and other Liens of like nature arising in
the ordinary course of business; mechanics’, workmen’s, materialmen’s or other
like Liens arising in the ordinary course of business in respect of obligations
which are not yet due or which are being contested in good faith; and other
Liens arising in the ordinary course of business and incidental to the conduct
of the business of the Company or such Subsidiary or to the ownership of its
properties or assets, which were not incurred in connection with the borrowing
of money and which do not materially detract front the value of the properties
or assets of the Company or materially affect the use thereof in the operation
of its business;

 

(c)           Liens in respect of judgments and
awards to the extent that such judgments or awards are being contested in good
faith and adequate insurance or appropriate reserves are maintained with
respect thereto on the books of the Company to the extent required by GAAP and
so long as execution is not levied thereunder;

 

(d)           Liens on any property acquired after
the date hereof which Liens existed when such property was acquired, and
extensions and renewals of such Liens; provided that no such extension or
renewal shall increase the aggregate amount of Indebtedness secured thereby,
nor add to the property subject to such Lien;

 

(e)           any Lien on any asset securing
Indebtedness incurred or assumed for the purpose of financing all or any part
of the cost of acquiring or improving such asset; provided that such Lien
attaches to such asset concurrently with or within 120 days after the
acquisition or completion of the improvement thereof;

 

40

 

(f)            other Liens incurred by the Company
in the ordinary course of its business, provided that the aggregate amount of
Indebtedness secured by all Liens permitted by this clause (f) shall not exceed
$20,000,000 in the aggregate;

 

(g)           zoning restrictions, easements,
licenses, reservations, provisions, covenants, conditions, waivers,
restrictions on the use of property or minor irregularities of title which do
not in the aggregate materially detract from the value of its property or
assets or materially impair the use thereof in the operations, business or
prospects of the Company or its Subsidiaries; and

 

(h)           Liens on the property or assets of
any Subsidiary in favor of the Company or any Subsidiary.

 

It being agreed that nothing in this
Section shall be deemed to directly or indirectly limit any lien that the
Company or any of its Subsidiaries may grant to any other Person on any margin
stock (within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System) owned thereby to the extent
such limitation could result in the view that the Borrower Obligations
hereunder are directly or indirectly secured by such margin stock.

 

Section
6.2            Dissolutions and Mergers.

 

The Company shall not merge into or consolidate
with or into any corporation or entity, unless, after giving effect to such
merger or consolidation (a) the Company is the surviving corporation, and (b)
no Default or Event of Default has occurred and is continuing or would result
therefrom.

 

Section
6.3            Disposition of Assets.

 

The Company shall not, and shall not permit
any of its Subsidiaries to, convey, sell, assign, lease, transfer or dispose
all or any portion of its assets (including accounts receivable and Capital
Stock of Subsidiaries) to any Person in a single transaction or in a series of
transactions, except for

 

(a)           any Sale in the ordinary course of
business; and

 

(b)           so long as no Default or Event of
Default has occurred and is continuing or would result therefrom, Sales of
assets with an aggregate book value not exceeding 10% of the consolidated
assets of the Company and its Subsidiaries (as determined in accordance with
GAAP and this Section 6.3) as of the end of the most recently concluded Fiscal
Year; provided that, for purposes of this paragraph (b):

 

(i)            the consolidated assets of the
Company and its Subsidiaries as of the end of the most recently concluded
Fiscal Year shall exclude any interest of the Company in The TriZetto Group
Inc., and any shares of Capital Stock of a Subsidiary that are subject to a
Sale shall be valued at the aggregate net book value of the assets of such
Subsidiary multiplied by a fraction of which the

 

41

 

numerator is the aggregate number of shares
of Capital Stock of such Subsidiary issued or disposed of in such Sale and the
denominator is the aggregate number of shares of Capital Stock of such
Subsidiary outstanding immediately prior to such Sale; and

 

(ii)           any Sale (x) by any Subsidiary to the
Company of a wholly-owned Subsidiary and (y) any Sale of the Company’s interest
in The TriZetto Group Inc. shall not be taken into account.

 

It being agreed that nothing in this
Section shall be deemed to directly or indirectly limit any sale by the Company
or any of its Subsidiaries to any other Person of margin stock (within the
meaning of Regulation U of the Board of
Governors of the Federal Reserve System) to the extent such limitation could
result in the view that the Borrower Obligations hereunder are directly or
indirectly secured by such margin stock.

 

Section
6.4            Conduct of Business.

 

The Company shall not make or permit to be
made any material change in the character of its business as carried on the
Closing Date.

 

Section
6.5            Compliance with Federal
Reserve Regulations.

 

Except for systematic stock repurchase
programs from time to time conducted by the Company, the Company shall not use
any part of the proceeds of any credit extended under this Credit Agreement or
the other Credit Documents to purchase or carry, or to reduce or retire any
Indebtedness incurred to purchase or carry, any margin stock (as defined in
Regulation U of the Board of Governors of the Federal Reserve System) or to
extend credit to any Person for the purpose of purchasing or carrying any
margin stock.

 

Section
6.6            Financial Covenants.

 

The Company will not permit (a) the
Leverage Ratio to exceed at any time 2.50 to 1.00 or (b) the Fixed Charge
Coverage Ratio to be less than at any time 2.00 to 1.00.

 

Section
6.7            Subsidiary Indebtedness.

 

No Subsidiary will create, incur, assume,
or suffer to exist any Indebtedness that, when totaled with all other
Indebtedness of the Subsidiaries, is in excess of $250,000,000.

 

42

 

ARTICLE VII

EVENTS OF DEFAULT

 

Section 7.1            Events of Default.

 

An Event of
Default shall exist upon the occurrence of any of the following specified
events (each an “Event of Default”):

 

(a)           The
Company shall fail to pay any principal on any Note when due in accordance with
the terms thereof or hereof; or the Company shall fail to pay any interest on
any Note or any fee or other amount payable hereunder when due in accordance
with the terms thereof or hereof and such failure shall continue unremedied for
five (5) days; or

 

(b)           Any
representation or warranty made or deemed made herein or in any of the other
Credit Documents or which is contained in any certificate, document or
financial or other statement furnished at any time under or in connection with
this Credit Agreement shall prove to have been incorrect, false or misleading
in any material respect on or as of the date made or deemed made; or

 

(c)           (i) The
Company shall fail to perform, comply with or observe any term, covenant or
agreement applicable to it contained in Section 5.1, 5.2, 5.4(a),
Section 5.7 or Article VI hereof; or (ii) the Company shall
default on any other covenant, contained in this Credit Agreement or the other
Credit Documents or any other agreement, document or instrument among the Company,
the Administrative Agent and the Lenders or executed by the Company in favor of
the Administrative Agent or the Lenders (other than as described in Sections
7.1(a) or 7.1(c)(i) above), and in the event such breach or failure to comply
continues for thirty (30) days of its occurrence after the earlier of a
Responsible Officer becoming aware of such default or the receipt by the
Company of written notice of such default from the Administrative Agent; or

 

(d)           The
Company or any of its Subsidiaries shall (i) default in any payment of
principal of or interest on any Indebtedness of the Company or any of its
Subsidiaries (other than the Notes) in a principal amount outstanding of at
least $10,000,000 in the aggregate beyond the period of grace (not to exceed
30 days), if any, provided in the instrument or agreement under which such
Indebtedness was created; or (ii) default in the observance or performance
of any other agreement or condition relating to any Indebtedness the Company or
any of its Subsidiaries in a principal amount outstanding of at least
$10,000,000 in the aggregate or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or
condition exist, in each case, the effect of which default or other event or condition
is to cause, or to permit the holder or holders of such Indebtedness or
beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on
behalf of such holder or holders or beneficiary or beneficiaries) to cause,
with the giving of notice if required, such Indebtedness to become due prior to
its stated maturity; or

 

43

 

(e)           The
Company or any Material Subsidiary shall (i) become insolvent or generally fail
to pay, or admit in writing its ability or unwillingness to pay, debts as they
become due; (ii) apply for, consent to or acquiesce in the appointment of a
trustee, receiver, sequestrator or other custodian for the Company or any
Material Subsidiary or any substantial part of the property thereof, or make a
general assignment for the benefit of creditors; (iii) in the absence of such
application, consent or acquiescence, permit or suffer to exist the appointment
of a trustee, receiver, sequestrator or other custodian for the Company or any
Material Subsidiary or for a substantial part of the property thereof, and such
trustee, receiver, sequestrator or other custodian shall not be discharged
within 60 days; (iv) permit or suffer to exist the commencement of any
bankruptcy, reorganization, debt arrangement or other case or proceeding under
any bankruptcy or insolvency law, or any dissolution, winding up or liquidation
proceeding, in respect of the Company or any Material Subsidiary and, if any
such case or proceeding shall be consented to or acquiesced in by the Company
or any Material Subsidiary or shall result in the entry of an order for relief
or shall remain for sixty (60) days undismissed; or (v) take any action
authorizing, or in furtherance of, any of the foregoing; or

 

(f)            Any
judgment or order shall be entered against the Company or any of the Material
Subsidiaries involving a liability (to the extent not covered by insurance) of
$10,000,000 or more and such judgment or order shall not be paid or otherwise
satisfied, and either (i) enforcement proceedings shall have been commenced by
any creditor upon such judgment or order, or (ii) there shall be any period of
ten (10) consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or

 

(g)           Any
Plan shall fail to satisfy the minimum funding standard required for any plan
year or part thereof or a waiver of such standard or extension of any
amortization period is sought or granted under Section 412 of the Code, any
Plan shall have had or is likely to have a trustee appointed to administer such
Plan, any Plan is, shall have been or is likely to be terminated or the subject
of termination proceedings under ERISA, any Plan shall have an Unfunded Current
Liability, a contribution required to be made to a Plan or a foreign pension
plan has not been timely made or the Company, any Subsidiary or any ERISA
Affiliate has incurred or is likely to incur a liability to or on account of a
Plan under Section 409, 502(i), 502(1), 515, 4062, 4063, 4064, 4069, 4201, 4204
or 4212 of ERISA or Section 401 (a)(29), 4971, 4975 or 4980 of the Code (ii)
there shall result from any such event or events the imposition of a Lien, the
granting of a security interest, or a liability or a material risk of incurring
a liability, and (iii) which Lien, security interest or liability, individually
and/or in the aggregate, in the opinion of the Administrative Agent or any
Lender will cause a Material Adverse Change; or

 

(h)           There
shall occur a Change of Control.

 

44

 

Section
7.2            Acceleration; Remedies.

 

Upon the
occurrence of an Event of Default, then, and in any such event, (a) if
such event is an Event of Default specified in Section 7.1(e) above, automatically
the Revolving Commitments shall immediately terminate and the Loans (with
accrued interest thereon), and all other amounts under the Credit Documents
shall immediately become due and payable, and (b) if such event is any
other Event of Default, either or both of the following actions may be
taken:  (i) with the written
consent of the Required Lenders, the Administrative Agent may, or upon the
written request of the Required Lenders, the Administrative Agent shall, by
notice to the Company declare the Revolving Commitments to be terminated
forthwith, whereupon the Revolving Commitments shall immediately terminate; and
(ii) with the written consent of the Required Lenders, the Administrative
Agent may, or upon the written request of the Required Lenders, the
Administrative Agent shall, by notice of default to the Company, declare the
Loans (with accrued interest thereon) and all other amounts owing under this
Credit Agreement and the Notes to be due and payable forthwith.

 

ARTICLE VIII

THE ADMINISTRATIVE AGENT

 

Section 8.1            Appointment.

 

Each Lender hereby
irrevocably designates and appoints Wachovia as the Administrative Agent of
such Lender under this Credit Agreement, and each such Lender irrevocably
authorizes Wachovia, as the Administrative Agent for such Lender, to take such
action on its behalf under the provisions of this Credit Agreement and to
exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Credit Agreement, together with such
other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary elsewhere in this
Credit Agreement, the Administrative Agent 
shall not have any duties or responsibilities, except those expressly
set forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Credit Agreement or otherwise exist against the
Administrative Agent.

 

Section
8.2            Delegation of Duties.

 

The Administrative
Agent may execute any of its duties under this Credit Agreement by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.  Without limiting the
foregoing, the Administrative Agent may appoint one of its affiliates as its
agent to perform its the functions of the Administrative Agent hereunder
relating to the advancing of funds to the Company and distribution of funds to
the Lenders and to perform such other related functions of the Administrative
Agent hereunder as are reasonably incidental to such functions.

 

45

 

Section
8.3            Exculpatory Provisions.

 

Neither the
Administrative Agent nor any of the its officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (i) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with this Credit Agreement (except for its or such Person’s own
gross negligence or willful misconduct) or (ii) responsible in any manner
to any of the Lenders for any recitals, statements, representations or
warranties made by the Company or any officer thereof contained in this Credit
Agreement or in any certificate, report, statement or other document referred
to or provided for in, or received by the Administrative Agent under or in
connection with, this Credit Agreement or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of any of the Credit
Documents or for any failure of the Company to perform its obligations
hereunder or thereunder.  The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance by the Company of
any of the agreements contained in, or conditions of, this Credit Agreement, or
to inspect the properties, books or records of the Company.

 

Section
8.4            Reliance by the
Administrative Agent.

 

The Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any Credit Document, writing, resolution, notice, consent, certificate,
affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it in good faith
to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to the Company), independent accountants and other
experts selected by the Administrative Agent. 
The Administrative Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless (a) a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent and (b) the Administrative Agent shall have received the written
agreement of such assignee to be bound hereby as fully and to the same extent
as if such assignee were an original Lender party hereto, in each case in form
satisfactory to the Administrative Agent. 
The Administrative Agent shall be fully justified in failing or refusing
to take any action under this Credit Agreement unless it shall first receive
such advice or concurrence of the Required Lenders or all of the Lenders as may
be required under this Credit Agreement or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall
subject to Section 8.3, be fully protected in acting, or in refraining
from acting, under any of the Credit Documents in accordance with a request of
the Required Lenders or all of the Lenders, as may be required under this
Credit Agreement, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders and all future holders
of the Notes.

 

Section 8.5            Notice of Default.

 

The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default hereunder unless the Administrative Agent has
received notice from a Lender or a Company referring to this Credit Agreement,
describing such

 

46

 

Default or Event of
Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders or all
Lenders, as applicable; provided, however, that unless and until
the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders except
to the extent that this Credit Agreement expressly requires that such action be
taken, or not taken, only with the consent or upon the authorization of the
Required Lenders, or all of the Lenders, as the case may be.

 

Section
8.6            Non-Reliance on the
Administrative Agent and Other Lenders.

 

Each Lender
expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates has
made any representation or warranty to it and that no act by the Administrative
Agent hereinafter taken, including any review of the affairs of the Company,
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any Lender. 
Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Company and made its own decision to make its Loans hereunder and enter into this
Credit Agreement.  Each Lender also
represents that it will, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Credit Agreement, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other
condition and creditworthiness of the Company. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Company which may come into the possession of the
Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.

 

Section 8.7            Indemnification.

 

The Lenders agree
to indemnify the Administrative Agent in its capacity as such hereunder (to the
extent not reimbursed by the Company and without limiting the obligation of the
Company to do so), ratably according to their respective Commitment Percentages
in effect on the date on which indemnification is sought under this Section,
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever which may at any time (including, without limitation, at any
time following the payment of the Notes) be imposed on, incurred by or asserted
against the Administrative Agent in any way relating to or arising out of any
Credit Document or any documents contemplated by or referred to herein or
therein or the transactions contemplated

 

47

 

hereby or thereby or any
action taken or omitted by the Administrative Agent under or in connection with
any of the foregoing; provided, however, that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
to the extent resulting from the Administrative Agent’s gross negligence or
willful misconduct, as determined by a court of competent jurisdiction.  The agreements in this Section 8.7
shall survive the termination of this Credit Agreement and payment of the Notes
and all other amounts payable hereunder.

 

Section
8.8            Administrative Agent in
its Individual Capacity.

 

The Administrative
Agent and its affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Company as though the Administrative
Agent was not an Administrative Agent hereunder.  With respect to its Loans made or renewed by it and any Note
issued to it, the Administrative Agent shall have the same rights and powers
under this Credit Agreement as any Lender and may exercise the same as though
it were not the Administrative Agent, and the terms “Lender” and “Lenders”
shall include the Administrative Agent in its individual capacity.

 

Section
8.9            Successor Administrative
Agent.

 

The Administrative
Agent may resign as Administrative Agent upon 30 days’ prior notice to the
Company and the Lenders.  If the
Administrative Agent shall resign as an Administrative Agent under this Credit
Agreement and the Notes, then the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall be
approved by the Company with such approval not to be unreasonably withheld
(provided, however if an Event of Default shall exist at such time, no approval
of the Company shall be required hereunder), whereupon such successor agent
shall succeed to the rights, powers and duties of the Administrative Agent, and
the term “Administrative Agent”, shall mean such successor Administrative Agent
effective upon such appointment and approval, and the former Administrative
Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Credit Agreement or any
holders of the Notes.  After any
retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Section 8.9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent
under this Credit Agreement.

 

Section 8.10         Nature of Duties.

 

Except as otherwise expressly stated herein, any agent
(other than the Administrative Agent) or arranger listed from time to time on
the cover page of this Credit Agreement shall have no obligations,
responsibilities or duties under this Credit Agreement or under any other
Credit Document other than obligations, responsibilities and duties applicable
to all Lenders in their capacity as Lenders; provided, however, that such agents
and arrangers shall be entitled to the same rights, protections, exculpations
and indemnifications granted to the Administrative Agent under this
Article VIII in their capacity as an agent or arranger.

 

48

 

Section
8.11         Other Agents; Arrangers.

 

Except as
otherwise expressly stated herein, any agent (other than the Administrative
Agent) or arranger listed from time to time on the cover page of this Credit
Agreement shall have no obligations, responsibilities or duties under this
Credit Agreement or under any other Credit Document other than obligations,
responsibilities and duties applicable to all Lenders in their capacity as
Lenders; provided, however, that such agents and arrangers shall be entitled to
the same rights, protections, exculpations and indemnifications granted to the
Administrative Agent under this Article VIII in their capacity as an agent
or arranger.

 

ARTICLE IX

MISCELLANEOUS

 

Section
9.1            Amendments and Waivers.

 

Neither this
Credit Agreement nor any of the other Credit Documents, nor any terms hereof or
thereof may be amended, supplemented, waived or modified except in accordance
with the provisions of this Section 9.1. 
The Required Lenders may, or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (a) enter into
with the Company written amendments, supplements or modifications hereto and to
the other Credit Documents for the purpose of adding any provisions to this
Credit Agreement or the other Credit Documents or changing in any manner the
rights of the Lenders or of the Company hereunder or thereunder or
(b) waive, on such terms and conditions as the Required Lenders may
specify in such instrument, any of the requirements of this Credit Agreement or
the other Credit Documents or any Default or Event of Default and its
consequences; provided, however, that no such amendment, waiver,
supplement, modification or release shall:

 

(i)            reduce
the amount or extend the scheduled date of maturity of any Loan or Note or any
installment thereon, or reduce the stated rate of any interest or fee payable
hereunder (other than interest at the increased post-default rate) or extend
the scheduled date of any payment thereof or increase the amount or extend the
expiration date of any Lender’s Commitment, in each case without the written
consent of each Lender directly affected thereby, or

 

(ii)           amend,
modify or waive any provision of this Section 9.1 or reduce the percentage
specified in the definition of Required Lenders, without the written consent of
all the Lenders, or

 

(iii)          amend,
modify or waive any provision of Article VIII without the written consent
of the then Administrative Agent, or

 

(iv)          amend,
modify or waive any provision of the Credit Documents requiring consent,
approval or request of the Required Lenders or all Lenders, without the written
consent of such Required Lenders or Lenders as appropriate; or

 

49

 

(v)           amend,
modify or waive any provision of the Credit Documents affecting the rights or
duties of the Administrative Agent under any Credit Document without the
written consent of the Administrative Agent, in addition to the Lenders
required hereinabove to take such action;

 

(vi)          amend
or modify the definition of Borrower Obligations to delete or exclude any
obligation or liability described therein without the written consent of each
Lender and each Hedging Agreement Provider directly affected thereby; or

 

(vii)         amend,
modify or waive any provision of Section 2.8 in a manner that would alter the
pro rata share of payments required thereby without the written consent of each
Lender directly affected thereby.

 

Any such waiver,
amendment, supplement or modification and any such release shall apply equally
to each of the Lenders and shall be binding upon the Company, the Lenders, the
Administrative Agent and all future holders of the Notes.  In the case of any waiver, the Company, the
Lenders and the Administrative Agent shall be restored to their former position
and rights hereunder and under the outstanding Loans and Notes and other Credit
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or other
Default or Event of Default, or impair any right consequent thereon.

 

Notwithstanding
any of the foregoing to the contrary, the consent of the Company shall not be
required for any amendment, modification or waiver of the provisions of
Article VIII (other than the provisions of Section 8.9).  In addition, the Company and the Lenders
hereby authorize the Administrative Agent to modify this Credit Agreement by
unilaterally amending or supplementing Schedule 2.1(a) from time to
time in the manner requested by the Company, the Administrative Agent or any
Lender in order to reflect any assignments or transfers of the Loans as
provided for hereunder; provided, however, that the
Administrative Agent shall promptly deliver a copy of any such modification to
the Company and each Lender.

 

Notwithstanding
the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (x) each Lender is entitled to vote as such
Lender sees fit on any bankruptcy reorganization plan that affects the Loans,
and each Lender acknowledges that the provisions of Section 1126(c) of the
Bankruptcy Code supersedes the unanimous consent provisions set forth herein
and (y) the Required Lenders may consent to allow the Company to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

 

Section 9.2            Notices.

 

Except as
otherwise provided in Article II, all notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made (a) when delivered by hand,
(b) when transmitted via telecopy (or other facsimile device) to the

 

50

 

number set out herein,
(c) the Business Day immediately following the day on which the same has
been delivered prepaid to a reputable national overnight air courier service,
or (d) the third Business Day following the day on which the same is sent
by certified or registered mail, postage prepaid, in each case, addressed as
follows in the case of the Company and the Administrative Agent, and as set
forth on Schedule 9.2 in the case of the Lenders, or to such other
address as may be hereafter notified by the respective parties hereto and any
future holders of the Notes:

 

	
  The Company:

  	
  IMS Health Incorporated

  
	
   

  	
  1499 Post Road

  
	
   

  	
  Fairfield, Connecticut
  06284

  
	
   

  	
  Attention: Jeff Ford,
  Treasurer

  
	
   

  	
  Telecopier: (203)
  319-4533

  
	
   

  	
  Telephone: (203)
  319-4527

  
	
   

  	
   

  
	
  The Administrative

  	
  Wachovia Bank, National
  Association, as Administrative Agent

  
	
  Agent:

  	
  Charlotte Plaza

  
	
   

  	
  201 South College
  Street, CP-8

  
	
   

  	
  Charlotte,
  North Carolina  28288-0680

  
	
   

  	
  Attention: Syndication
  Agency Services

  
	
   

  	
  Telecopier: (704)
  383-0288

  
	
   

  	
  Telephone: (704)
  383-6591

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National
  Association

  
	
   

  	
  One Wachovia Center,
  DC-5

  
	
   

  	
  Charlotte,
  North Carolina  28288-0737

  
	
   

  	
  Attention:

  	
  Agency Management

  
	
   

  	
  Telecopier:

  	
  (704) 383-7611

  
	
   

  	
  Telephone:

  	
  (704) 715-7708

  

 

Section
9.3            No Waiver; Cumulative
Remedies.

 

No failure to
exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

Section
9.4            Payment of Expenses and
Taxes.

 

The Company agrees
(a) to pay or reimburse the Administrative Agent and the Arranger for all their
reasonable and documented out-of-pocket costs and expenses incurred in connection
with the development, preparation, negotiation, printing and execution of, and
any amendment, supplement or modification to, this Credit Agreement and the
other Credit Documents and any

 

51

 

other documents prepared
in connection herewith or therewith, and the consummation and administration of
the transactions contemplated hereby and thereby, together with the reasonable
fees and disbursements of counsel to the Administrative Agent and the Arranger,
(b) to pay or reimburse each Lender and the Administrative Agent for all its
costs and expenses incurred in connection with the enforcement or preservation
of any rights under this Credit Agreement and the other Credit Documents,
including, without limitation, the reasonable fees and disbursements of counsel
to the Administrative Agent and to the Lenders, and (c) on demand, to pay,
indemnify, and hold each Lender and the Administrative Agent harmless from, any
and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other similar taxes,
if any, which may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the
transactions contemplated by, or any amendment, supplement or modification of,
or any waiver or consent under or in respect of, the Credit Documents and any
such other documents, and (d) to pay, indemnify, and hold each Lender and the
Administrative Agent and their Affiliates harmless from and against, any and
all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance
and administration of the Credit Documents and any such other documents and the
use, or proposed use, of proceeds of the Loans (all of the foregoing,
collectively, the “indemnified liabilities”); provided, however,
that the Company shall not have any obligation hereunder to any Agent or any
Lender or any Affiliate thereof with respect to indemnified liabilities to the
extent (i) arising from the gross negligence or willful misconduct of the
Administrative Agent or any such Lender or any such Affiliate, as determined by
a court of competent jurisdiction or (ii) relating to disputes among any
Lender or Affiliate thereof and the Administrative Agent or one or more other
Lender or Affiliate thereof unless such dispute is related to this Credit
Agreement or the Extensions of Credit hereunder.  The Company shall not be required to indemnify any Indemnified
Party for any amount paid or payable to any Indemnified Party in the compromise
or settlement of any action, proceeding or investigation without the prior
written consent of the Company, which consent shall not be unreasonably
withheld.  Promptly after receipt by an Indemnified Party of notice of its
involvement in any action, proceeding or investigation, such Indemnified Party
shall, if a claim for indemnification in respect thereof is to be made against
the Company under this Credit Agreement, promptly notify the Company in writing
of such involvement.  Failure by the
Indemnified Party to so notify the Company shall not relieve the Company from
the obligation to indemnify the Indemnified Party under this Credit Agreement
except to the extent that the Company suffers actual prejudice as a result of
such failure, and shall not relieve the Company from its obligation to provide
reimbursement and contribution to the Indemnified Party. 
It is acknowledged and agreed that each Indemnified Party
shall cooperate with the Company in good faith to coordinate a mutual defense
strategy and to enter into joint defense agreements and will use commercially
reasonable efforts to minimize the costs thereof including, without limitation,
(i) the delivery of periodic updates with respect to legal and other expenses
incurred, (ii)  limiting the engagement
of legal counsel to one law firm at any one time (excluding local counsel which
may be engaged as deemed necessary by the Indemnified Party) and (iii) the
taking of such other measures in connection therewith as may be reasonably
requested by the Company.  The
agreements in this Section 9.4 shall survive repayment of the Loans and the
Borrower Obligations.

 

52

 

Section
9.5            Successors and Assigns;
Participations; Purchasing Lenders.

 

(a)           This
Credit Agreement shall be binding upon and inure to the benefit of the Company,
the Lenders, the Administrative Agent, all future holders of the Notes and
their respective successors and assigns, except that the Company may not assign
or transfer any of their rights or obligations under this Credit Agreement or
the other Credit Documents without the prior written consent of each Lender;
except to the extent any such assignment results from the consummation of a
merger or consolidation permitted pursuant to Section 6.2 of this Credit
Agreement.

 

(b)           Any
Lender may, in the ordinary course of its commercial banking business and in
accordance with applicable law, at any time sell to one or more banks or other
entities (“Participants”) participating interests in any Loan owing to
such Lender, any Note held by such Lender, any Commitment of such Lender, or
any other interest of such Lender hereunder. 
In the event of any such sale by a Lender of participating interests to
a Participant, such Lender’s obligations under this Credit Agreement to the
other parties to this Credit Agreement shall remain unchanged, such Lender
shall remain solely responsible for the performance thereof, such Lender shall
remain the holder of any such Note for all purposes under this Credit
Agreement, and the Company and the Administrative Agent shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Credit Agreement. 
No Lender shall transfer or grant any participation under which the
Participant shall have rights to approve any amendment to or waiver of this
Credit Agreement or any other Credit Document except to the extent such
amendment or waiver would (i) extend the scheduled maturity of any Loan or
Note or any installment thereon in which such Participant is participating, or
reduce the stated rate or extend the time of payment of interest or fees
thereon (except in connection with a waiver of interest at the increased
post-default rate) or reduce the principal amount thereof, or increase the
amount of the Participant’s participation over the amount thereof then in
effect (it being understood that a waiver of any Default or Event of Default
shall not constitute a change in the terms of such participation, and that an
increase in any Commitment or Loan shall be permitted without consent of any
participant if the Participant’s participation is not increased as a result
thereof) or (ii) consent to the assignment or transfer by the Company of
any of its rights and obligations under this Credit Agreement.  In the case of any such participation, the
Participant shall not have any rights under this Credit Agreement or any of the
other Credit Documents (the Participant’s rights against such Lender in respect
of such participation to be those set forth in the agreement executed by such
Lender in favor of the Participant relating thereto) and all amounts payable by
the Company hereunder shall be determined as if such Lender had not sold such
participation; provided that each Participant shall be entitled to the
benefits of Section 2.15, 2.16 and 2.17 with respect to its participation
in the Revolving Commitments and the Loans outstanding from time to time; provided
further, that no Participant shall be entitled to receive any greater
amount pursuant to such Sections than the transferor Lender would have been
entitled to receive in respect of the amount of the participation transferred
by such transferor Lender to such Participant had no such transfer occurred.

 

53

 

(c)           Any
Lender may, in the ordinary course of its commercial banking business and in
accordance with applicable law, at any time, sell or assign to any Lender or
any Affiliate or Related Fund thereof and with the consent of the
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Company (in each case, which consent shall not be unreasonably
withheld or delayed), to one or more additional banks or financial institutions
or entities (“Purchasing Lenders”), all or any part of its rights and
obligations under this Credit Agreement and the Notes in minimum amounts of
$5,000,000 with respect to its Revolving Commitment and its Revolving Loans
(or, if less, the entire amount of such Lender’s Revolving Commitment and
Revolving Loans), pursuant to a Commitment Transfer Supplement, executed by
such Purchasing Lender and such transferor Lender (and, in the case of a
Purchasing Lender that is not then a Lender or an affiliate or Related Fund
thereof, the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Company), and delivered to the Administrative
Agent for its acceptance and recording in the Register; provided, however,
that any sale or assignment to an existing Lender, or Affiliate or Related Fund
thereof, shall not require the consent of the Administrative Agent or the
Company nor shall any such sale or assignment be subject to the minimum
assignment amounts specified herein. 
Upon such execution, delivery, acceptance and recording, from and after
the Transfer Effective Date specified in such Commitment Transfer Supplement,
(x) the Purchasing Lender thereunder shall be a party hereto and, to the extent
provided in such Commitment Transfer Supplement, have the rights and
obligations of a Lender hereunder with a Commitment as set forth therein, and
(y) the transferor Lender thereunder shall, to the extent provided in such
Commitment Transfer Supplement, be released from its obligations under this
Credit Agreement (and, in the case of a Commitment Transfer Supplement covering
all or the remaining portion of a transferor Lender’s rights and obligations
under this Credit Agreement, such transferor Lender shall cease to be a party
hereto).  Such Commitment Transfer
Supplement shall be deemed to amend this Credit Agreement to the extent, and
only to the extent, necessary to reflect the addition of such Purchasing Lender
and the resulting adjustment of Commitment Percentages arising from the
purchase by such Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender under this Credit Agreement and the
Notes.  On or prior to the Transfer
Effective Date specified in such Commitment Transfer Supplement, the Company,
at its own expense, shall execute and deliver to the Administrative Agent in
exchange for the Notes delivered to the Administrative Agent pursuant to such
Commitment Transfer Supplement  new
Notes to the order of such Purchasing Lender in an amount equal to the
Revolving Commitment assumed by it pursuant to such Commitment Transfer Supplement
and, unless the transferor Lender has not retained a Commitment hereunder, new
Notes to the order of the transferor Lender in an amount equal to the Revolving
Commitment retained by it hereunder. 
Such new Notes shall be dated the Closing Date and shall otherwise be in
the form of the Notes replaced thereby.

 

(d)           The
Administrative Agent shall maintain at its address referred to in
Section 9.2 a copy of each Commitment Transfer Supplement delivered to it
and a register (the “Register”) for the recordation of the names and
addresses of the Lenders and the Revolving Commitment of, and principal amount
of the Loans owing to, each

 

54

 

Lender from time
to time.  The entries in the Register
shall be conclusive, in the absence of manifest error, and the Company, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loan recorded therein for all
purposes of this Credit Agreement.  The
Register shall be available for inspection by the Company or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

 

(e)           Upon
its receipt of a duly executed Commitment Transfer Supplement, together with
payment to the Administrative Agent by the transferor Lender or the Purchasing
Lender, as agreed between them, of a registration and processing fee of $3,500
for each Purchasing Lender (other than an Affiliate of such Lender or a Related
Fund) listed in such Commitment Transfer Supplement and the Notes subject to
such Commitment Transfer Supplement, the Administrative Agent shall
(i) accept such Commitment Transfer Supplement, (ii) record the
information contained therein in the Register and  (iii) give prompt notice of
such acceptance and recordation to the Lenders and the Company.

 

(f)            The
Company authorize each Lender to disclose to any Participant or Purchasing
Lender (each, a “Transferee”) and any prospective Transferee any and all
financial information in such Lender’s possession concerning the Company and
its Affiliates which has been delivered to such Lender by or on behalf of the
Company pursuant to this Credit Agreement or which has been delivered to such
Lender by or on behalf of the Company in connection with such Lender’s credit evaluation
of the Company and its Affiliates prior to becoming a party to this Credit
Agreement, in each case subject to Section 9.15.

 

(g)           At
the time of each assignment pursuant to this Section 9.5 to a Person which
is not already a Lender hereunder and which is not a United States person
(as such term is defined in Section 7701(a)(30) of the Code) for Federal
income tax purposes, the respective assignee Lender shall provide to the
Company and the Administrative Agent the appropriate Internal Revenue Service
Forms described in Section 2.17.

 

(h)           Nothing
herein shall prohibit any Lender from pledging or assigning any of its rights
under this Credit Agreement (including, without limitation, any right to
payment of principal and interest under any Note) to any Federal Reserve Bank
in accordance with applicable laws.

 

Section
9.6            Adjustments; Set-off.

 

(a)           Each
Lender agrees that if any Lender (a “benefited Lender”) shall at any
time receive any payment of all or part of its Loans, or interest thereon, or
receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 7.1(e), or otherwise) in a greater proportion than
any such payment to or collateral received by any other Lender, if any, in
respect of such other Lender’s Loans, or interest thereon, such benefited
Lender shall purchase for cash from the other Lenders a participating interest
in such portion of each

 

55

 

such other
Lender’s Loan, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such
benefited Lender to share the excess payment or benefits of such collateral or
proceeds ratably with each of the Lenders; provided, however,
that if all or any portion of such excess payment or benefits is thereafter
recovered from such benefited Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but
without interest.  The Company agree
that each Lender so purchasing a portion of another Lender’s Loans may exercise
all rights of payment (including, without limitation, rights of set-off) with
respect to such portion as fully as if such Lender were the direct holder of
such portion.

 

(b)           The
Company hereby grants to the Lenders, a lien, security interest, and right of
setoff as security for all liabilities and obligations to the Lenders, whether
now existing or hereafter arising upon and against all deposits, credits,
collateral, and property, now or hereafter in the possession, custody,
safekeeping or control of the Lenders or any entity under the control of the
parent company of any of the Lenders, and their successors and assigns or in
transit to any of them.  At any time
after an Event of Default, without demand or notice, the Lenders may set off
the same or any part thereof and apply the same to any liability or obligation
of the Company and any guarantor even though unmatured and regardless of the
adequacy of any other collateral securing the Loans.  ANY AND ALL RIGHTS TO REQUIRE THE LENDERS TO EXERCISE THEIR
RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOANS,
PRIOR TO EXERCISING THEIR RIGHTS OF SETOFF WITH RESPECT TO SUCH DEPOSITS,
CREDITS, OR OTHER PROPERTY OF THE COMPANY, ARE HEREBY KNOWINGLY, VOLUNTARILY,
AND IRREVOCABLY WAIVED.

 

Section
9.7            Table of Contents and
Section Headings.

 

The table of
contents and the Section and subsection headings herein are intended for
convenience only and shall be ignored in construing this Credit Agreement.

 

Section 9.8            Counterparts.

 

This Credit
Agreement may be executed by one or more of the parties to this Credit
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Credit Agreement
signed by all the parties shall be lodged with the Company and the
Administrative Agent.

 

Section 9.9            Effectiveness.

 

This Credit
Agreement shall become effective on the date on which all of the parties have
signed a copy hereof (whether the same or different copies) and shall have
delivered the same to the Administrative Agent pursuant to Section 9.2
or, in the case of the Lenders, shall have given

 

56

 

to the Administrative
Agent written, telecopied or telex notice (actually received) at such office
that the same has been signed and mailed to it.

 

Section 9.10         Severability.

 

Any provision of
this Credit Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

Section 9.11         Integration.

 

This Credit
Agreement and the other Credit Documents represent the agreement of the
Company, the Administrative Agent and the Lenders with respect to the subject
matter hereof, and there are no promises, undertakings, representations or
warranties by the Administrative Agent, the Company or any Lender relative to
the subject matter hereof not expressly set forth or referred to herein or
therein.

 

Section 9.12         Governing Law.

 

This Credit
Agreement and, unless otherwise specified therein, each other Credit Document
and the rights and obligations of the parties under this Credit Agreement and
such other Credit Documents shall be governed by, and construed and interpreted
in accordance with, the law of the State of New York applicable to
contracts made and to be performed entirely within such State.

 

Section
9.13         Consent to Jurisdiction
and Service of Process.

 

The Company
consents, for itself and in connection with its properties to the non-exclusive
jurisdiction of the United States District Court for the Southern District of
New York and of any New York State court sitting in New York City for purposes
of all legal proceedings arising out of the Credit Agreement, any Note or any
of the other Credit Documents.  The
Company irrevocably agree that all service of process in any such proceedings
in any such court may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage prepaid,
return receipt requested, to it at its address set forth in Section 9.2 or
at such other address of which the Administrative Agent shall have been
notified pursuant thereto, such service being hereby acknowledged by the
Company to be effective and binding service to the fullest extent permitted by
applicable law.  The Company, the
Administrative Agent and the Lenders irrevocably waive, to the fullest extent
permitted by applicable law, any objection, including, without limitation, any
objection to the laying of venue or based on the grounds of forum non
conveniens which it may now or hereafter have to the bringing of any such
action or proceeding in any such jurisdiction. 
Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of any Lender to bring
proceedings against the Company in the court of any other jurisdiction.

 

57

 

Section
9.14         Confidentiality.

 

The Administrative
Agent and each of the Lenders agrees that it will use its best efforts not to
disclose without the prior consent of the Company (other than to its employees,
affiliates, auditors or counsel or to another Lender) any information (the “Information”)
with respect to the Company and its Subsidiaries which is furnished pursuant to
this Credit Agreement, any other Credit Document or any documents contemplated
by or referred to herein or therein and which is designated by the Company to
the Lenders in writing as confidential or as to which it is otherwise
reasonably clear such information is not public, except that any Lender may
disclose any such Information (a) as has become generally available to the
public other than by a breach of this Section 9.14, (b) as may be
required or appropriate in any report, statement or testimony submitted to any
municipal, state or federal regulatory body having or claiming to have jurisdiction
over such Lender or to the Federal Reserve Board or the Federal Deposit
Insurance Corporation or the Office of the Comptroller of the Currency or the
National Association of Insurance Commissioners or similar organizations
(whether in the United States or elsewhere) or their successors,
(c) as may be required or appropriate in response to any summons or
subpoena or any law, order, regulation or ruling applicable to such Lender,
(d) to (i) any prospective Participant or assignee in connection with any
contemplated transfer pursuant to Section 9.6 or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Company, provided that such prospective
transferee shall have been made aware of this Section 9.14 and shall have
agreed to be bound by its provisions as if it were a party to this Credit
Agreement, (e) to Gold Sheets and other similar bank trade
publications; such information to consist of deal terms and other information
regarding the credit facilities evidenced by this Credit Agreement customarily
found in such publications and (f) in connection with any suit, action or
proceeding for the purpose of defending itself, reducing its liability, or
protecting or exercising any of its claims, rights, remedies or interests under
or in connection with the Credit Documents or any Hedging Agreement.

 

Section
9.15         Acknowledgments.

 

The Company hereby
acknowledges that:

 

(a)           it
has been advised by counsel in the negotiation, execution and delivery of each
Credit Document;

 

(b)           neither
the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to the Company arising out of or in connection with this Credit Agreement
and the relationship between the Administrative Agent and Lenders, on one hand,
and the Company, on the other hand, in connection herewith is solely that of
debtor and creditor; and

 

(c)           no
joint venture exists among the Lenders or among the Company and the Lenders.

 

58

 

Section
9.16         Waivers of Jury Trial.

 

THE COMPANY, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER CREDIT
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

Section
9.17         USA Patriot Act Notice.

 

Each Lender and the Administrative Agent (for itself
and not on behalf of any Lender) hereby notifies the Company that pursuant to
the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies the Company, which information
includes the name and address of the Company and other information that will
allow such Lender or the Administrative Agent, as applicable, to identify the
Company in accordance with Act.

 

59

 

IN WITNESS
WHEREOF, the parties hereto have caused this Credit Agreement to be duly
executed and delivered by its proper and duly authorized officers as of the day
and year first above written.

 

 

	
  COMPANY:

  	
   

  	
   

  	
  IMS HEALTH INCORPORATED,

  
	
   

  	
   

  	
   

  	
  a Delaware corporation,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
  ADMINISTRATIVE AGENT

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AND LENDERS:

  	
   

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
   

  	
  as Administrative Agent
  and as a Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:Exhibit
10.1

 

PACIFIC PREMIER BANCORP,
INC.

 

as Issuer

 

 

INDENTURE

 

Dated as of March 25,
2004

 

 

WILMINGTON TRUST COMPANY

 

as Trustee

 

 

FLOATING RATE JUNIOR
SUBORDINATED DEBT SECURITIES DUE 2034

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.01

  	
  Definitions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  DEBT SECURITIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.01

  	
  Authentication
  and Dating.

  	
   

  
	
   

  	
  Section
  2.02

  	
  Form
  of Trustee’s Certificate of Authentication.

  	
   

  
	
   

  	
  Section
  2.03

  	
  Form
  and Denomination of Debt Securities.

  	
   

  
	
   

  	
  Section 2.04

  	
  Execution of
  Debt Securities.

  	
   

  
	
   

  	
  Section
  2.05

  	
  Exchange
  and Registration of Transfer of Debt Securities.

  	
   

  
	
   

  	
  Section 2.06

  	
  Mutilated, Destroyed,
  Lost or Stolen Debt Securities.

  	
   

  
	
   

  	
  Section 2.07

  	
  Temporary Debt
  Securities.

  	
   

  
	
   

  	
  Section 2.08

  	
  Payment of Interest.

  	
   

  
	
   

  	
  Section 2.09

  	
  Cancellation of Debt
  Securities Paid, etc.

  	
   

  
	
   

  	
  Section 2.10

  	
  Computation of
  Interest.

  	
   

  
	
   

  	
  Section 2.11

  	
  Extension of Interest
  Payment Period.

  	
   

  
	
   

  	
  Section 2.12

  	
  CUSIP Numbers.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III

  	
  PARTICULAR
  COVENANTS OF THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.01

  	
  Payment of Principal,
  Premium and Interest; Agreed Treatment of the Debt Securities.

  	
   

  
	
   

  	
  Section 3.02

  	
  Offices for Notices
  and Payments, etc.

  	
   

  
	
   

  	
  Section 3.03

  	
  Appointments to Fill
  Vacancies in Trustee’s Office.

  	
   

  
	
   

  	
  Section 3.04

  	
  Provision as to Paying
  Agent.

  	
   

  
	
   

  	
  Section 3.05

  	
  Certificate to
  Trustee.

  	
   

  
	
   

  	
  Section 3.06

  	
  Additional Amounts.

  	
   

  
	
   

  	
  Section 3.07

  	
  Compliance with
  Consolidation Provisions.

  	
   

  
	
   

  	
  Section 3.08

  	
  Limitation on
  Dividends.

  	
   

  
	
   

  	
  Section 3.09

  	
  Covenants as to the Trust.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  LISTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.01

  	
  Securityholders’
  Lists.

  	
   

  
	
   

  	
  Section
  4.02

  	
  Preservation
  and Disclosure of Lists.

  	
   

  
	
   

  	
  Section
  4.03

  	
  Financial
  and Other Information.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V

  	
  REMEDIES
  OF THE TRUSTEE AND SECURITYHOLDERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.01

  	
  Events of Default.

  	
   

  
	
   

  	
  Section
  5.02

  	
  Payment
  of Debt Securities on Default; Suit Therefor.

  	
   

  
	
   

  	
  Section
  5.03

  	
  Application
  of Moneys Collected by Trustee.

  	
   

  
	
   

  	
  Section
  5.04

  	
  Proceedings
  by Securityholders.

  	
   

  

 

i

 

	
   

  	
  Section 5.05

  	
  Proceedings by
  Trustee.

  	
   

  
	
   

  	
  Section
  5.06

  	
  Remedies
  Cumulative and Continuing.

  	
   

  
	
   

  	
  Section
  5.07

  	
  Direction
  of Proceedings and Waiver of Defaults by Majority of Securityholders.

  	
   

  
	
   

  	
  Section 5.08

  	
  Notice of Defaults.

  	
   

  
	
   

  	
  Section 5.09

  	
  Undertaking to
  Pay Costs.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  CONCERNING THE
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.01

  	
  Duties
  and Responsibilities of Trustee.

  	
   

  
	
   

  	
  Section 6.02

  	
  Reliance on Documents,
  Opinions, etc.

  	
   

  
	
   

  	
  Section
  6.03

  	
  No
  Responsibility for Recitals, etc.

  	
   

  
	
   

  	
  Section 6.04

  	
  Trustee,
  Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own
  Debt Securities.

  	
   

  
	
   

  	
  Section 6.05

  	
  Moneys to be
  Held in Trust.

  	
   

  
	
   

  	
  Section
  6.06

  	
  Compensation
  and Expenses of Trustee.

  	
   

  
	
   

  	
  Section
  6.07

  	
  Officers’
  Certificate as Evidence.

  	
   

  
	
   

  	
  Section 6.08

  	
  Eligibility of
  Trustee.

  	
   

  
	
   

  	
  Section
  6.09

  	
  Resignation
  or Removal of Trustee.

  	
   

  
	
   

  	
  Section
  6.10

  	
  Acceptance
  by Successor Trustee.

  	
   

  
	
   

  	
  Section 6.11

  	
  Succession by Merger,
  etc.

  	
   

  
	
   

  	
  Section 6.12

  	
  Authenticating
  Agents.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  CONCERNING
  THE SECURITYHOLDERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.01

  	
  Action by
  Securityholders.

  	
   

  
	
   

  	
  Section
  7.02

  	
  Proof
  of Execution by Securityholders.

  	
   

  
	
   

  	
  Section
  7.03

  	
  Who Are
  Deemed Absolute Owners.

  	
   

  
	
   

  	
  Section
  7.04

  	
  Debt
  Securities Owned by Company Deemed Not Outstanding.

  	
   

  
	
   

  	
  Section
  7.05

  	
  Revocation
  of Consents; Future Holders Bound.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  SECURITYHOLDERS’
  MEETINGS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.01

  	
  Purposes of Meetings.

  	
   

  
	
   

  	
  Section 8.02

  	
  Call of
  Meetings by Trustee.

  	
   

  
	
   

  	
  Section
  8.03

  	
  Call
  of Meetings by Company or Securityholders.

  	
   

  
	
   

  	
  Section 8.04

  	
  Qualifications
  for Voting.

  	
   

  
	
   

  	
  Section 8.05

  	
  Regulations.

  	
   

  
	
   

  	
  Section
  8.06

  	
  Voting.

  	
   

  
	
   

  	
  Section 8.07

  	
  Quorum; Actions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  SUPPLEMENTAL
  INDENTURES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  9.01

  	
  Supplemental
  Indentures without Consent of Securityholders.

  	
   

  
	
   

  	
  Section
  9.02

  	
  Supplemental
  Indentures with Consent of Securityholders.

  	
   

  
	
   

  	
  Section
  9.03

  	
  Effect
  of Supplemental Indentures.

  	
   

  

 

ii

 

	
   

  	
  Section 9.04

  	
  Notation on
  Debt Securities.

  	
   

  
	
   

  	
  Section
  9.05

  	
  Evidence
  of Compliance of Supplemental Indenture to be Furnished to Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  REDEMPTION OF
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.01

  	
  Optional Redemption.

  	
   

  
	
   

  	
  Section 10.02

  	
  Special Event
  Redemption.

  	
   

  
	
   

  	
  Section
  10.03

  	
  Notice
  of Redemption; Selection of Debt Securities.

  	
   

  
	
   

  	
  Section
  10.04

  	
  Payment
  of Debt Securities Called for Redemption.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  CONSOLIDATION, MERGER,
  SALE, CONVEYANCE AND LEASE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.01

  	
  Company May
  Consolidate, etc., on Certain Terms.

  	
   

  
	
   

  	
  Section
  11.02

  	
  Successor
  Entity to be Substituted.

  	
   

  
	
   

  	
  Section
  11.03

  	
  Opinion
  of Counsel to be Given to Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  XII

  	
  SATISFACTION
  AND DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.01

  	
  Discharge of
  Indenture.

  	
   

  
	
   

  	
  Section
  12.02

  	
  Deposited
  Moneys to be Held in Trust by Trustee.

  	
   

  
	
   

  	
  Section
  12.03

  	
  Paying
  Agent to Repay Moneys Held.

  	
   

  
	
   

  	
  Section 12.04

  	
  Return of
  Unclaimed Moneys.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  13.01

  	
  Indenture
  and Debt Securities Solely Corporate Obligations.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 14.01

  	
  Successors.

  	
   

  
	
   

  	
  Section
  14.02

  	
  Official
  Acts by Successor Entity.

  	
   

  
	
   

  	
  Section
  14.03

  	
  Surrender of
  Company Powers.

  	
   

  
	
   

  	
  Section 14.04

  	
  Addresses for
  Notices, etc.

  	
   

  
	
   

  	
  Section 14.05

  	
  Governing Law.

  	
   

  
	
   

  	
  Section
  14.06

  	
  Evidence
  of Compliance with Conditions Precedent.

  	
   

  
	
   

  	
  Section 14.07

  	
  Business Day
  Convention.

  	
   

  
	
   

  	
  Section 14.08

  	
  Table of Contents,
  Headings, etc.

  	
   

  
	
   

  	
  Section 14.09

  	
  Execution in
  Counterparts.

  	
   

  
	
   

  	
  Section 14.10

  	
  Separability.

  	
   

  
	
   

  	
  Section 14.11

  	
  Assignment.

  	
   

  
	
   

  	
  Section 14.12

  	
  Acknowledgment
  of Rights.

  	
   

  

 

iii

 

	
  ARTICLE XV

  	
  SUBORDINATION
  OF DEBT SECURITIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 15.01

  	
  Agreement to
  Subordinate.

  	
   

  
	
   

  	
  Section
  15.02

  	
  Default
  on Senior Indebtedness.

  	
   

  
	
   

  	
  Section
  15.03

  	
  Liquidation;
  Dissolution; Bankruptcy.

  	
   

  
	
   

  	
  Section 15.04

  	
  Subrogation.

  	
   

  
	
   

  	
  Section
  15.05

  	
  Trustee
  to Effectuate Subordination.

  	
   

  
	
   

  	
  Section 15.06

  	
  Notice by the
  Company.

  	
   

  
	
   

  	
  Section
  15.07

  	
  Rights
  of the Trustee; Holders of Senior Indebtedness.

  	
   

  
	
   

  	
  Section
  15.08

  	
  Subordination
  May Not Be Impaired.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXHIBIT
  A

  	
  Form
  of Debt Security

  	
   

  
						

 

iv

 

THIS INDENTURE, dated as of March 25, 2004, between PACIFIC
PREMIER BANCORP, INC., a savings and loan holding company incorporated in the
State of Delaware (hereinafter sometimes called the “Company”), and Wilmington
Trust Company, a Delaware banking corporation, as trustee (hereinafter
sometimes called the “Trustee”).

 

W I T N E S S E T H :

 

WHEREAS, for its lawful corporate purposes, the
Company has duly authorized the issuance of its Floating Rate Junior
Subordinated Debt Securities due 2034 (the “Debt Securities”) under this
Indenture and to provide, among other things, for the execution and
authentication, delivery and administration thereof, the Company has duly
authorized the execution of this Indenture.

 

NOW, THEREFORE, in consideration of the premises, and
the purchase of the Debt Securities by the holders thereof, the Company
covenants and agrees with the Trustee for the equal and proportionate benefit
of the respective holders from time to time of the Debt Securities as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01           Definitions.

 

The terms defined in this Section 1.01 (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section 1.01. All
accounting terms used herein and not expressly defined shall have the meanings
assigned to such terms in accordance with generally accepted accounting
principles and the term “generally accepted accounting principles” means such
accounting principles as are generally accepted in the United States at the
time of any computation.  The words
“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.

 

“Additional Amounts” has the meaning set forth in
Section 3.06.

 

“Additional Provisions” has the meaning set forth in
Section 15.01.

 

“Administrative Action” has the meaning specified
within the definition of “Tax Event” in this Section 1.01.

 

“Affiliate” has the same meaning as given to that term
in Rule 405 of the Securities Act of 1933, as amended, or any successor rule
thereunder.

 

“Authenticating Agent” means any agent or agents of
the Trustee which at the time shall be appointed and acting pursuant to Section
6.12.

 

“Bankruptcy Law” means Title 11, U.S. Code, or any
similar federal or state law for the relief of debtors.

 

 

“Board of Directors” means the board of directors or
the executive committee or any other duly authorized designated officers of the
Company.

 

“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 and delivered to the Trustee.

 

“Business Day” means any day other than a Saturday,
Sunday or any other day on which banking institutions in Wilmington, Delaware,
The City of New York or Sacramento, California are permitted or required by law
or executive order to close.

 

“Calculation Agent” means the Person identified as
“Trustee” in the first paragraph hereof with respect to the Debt Securities and
the Institutional Trustee with respect to the Trust Securities.

 

“Capital Securities” means undivided beneficial
interests in the assets of the Trust which are designated as “MMCapSSM” and
rank pari passu with Common Securities issued by the Trust; provided, however,
that if an Event of Default (as defined in the Declaration) has occurred and is
continuing, the rights of holders of such Common Securities to payment in
respect of distributions and payments upon liquidation, redemption and
otherwise are subordinated to the rights of holders of such Capital Securities.

 

“Capital Securities
Guarantee” means the guarantee agreement that the Company will enter into with
Wilmington Trust Company or other Persons that operates directly or indirectly
for the benefit of holders of Capital Securities of the Trust.

 

“Capital Treatment Event”
means, if the Company is organized and existing under the laws of the United
States or any state thereof or the District of Columbia, the receipt by the
Company and the Trust of an Opinion of Counsel experienced in such matters to
the effect that, as a result of (a) any amendment to, or change in, the laws,
rules or regulations of the United States or any political subdivision thereof
or therein, or any rules, guidelines or policies of an applicable regulatory
authority for the Company or (b) any official or administrative pronouncement
or action or decision interpreting or applying such laws, rules or regulations,
which amendment or change is effective or which pronouncement, action or
decision is announced on or after the date of original issuance of the Debt
Securities, there is more than an insubstantial risk that the Company will not,
within 90 days of the date of such opinion, be entitled to treat an amount
equal to the aggregate Liquidation Amount of the Capital Securities as “Tier 1
Capital” (or its then equivalent) if the Company (or its successors) were
subject to such capital requirement, applied as if the Company (or its
successors) were a bank holding company for purposes of the capital adequacy
guidelines of the Federal Reserve (or any successor regulatory authority with
jurisdiction over bank holding companies), or any capital adequacy guidelines
as then in effect and applicable to the Company; provided, however,
that the distribution of the Debt Securities in connection with the liquidation
of the Trust by the Company shall not in and of itself constitute a Capital
Treatment Event unless such liquidation shall have occurred in connection with
a Tax Event or an Investment Company Event.

 

2

 

“Certificate” means a certificate signed by any one of
the principal executive officer, the principal financial officer or the
principal accounting officer of the Company.

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Common Securities” means
undivided beneficial interests in the assets of the Trust which are designated
as “Common Securities” and rank pari passu with Capital Securities issued
by the Trust; provided, however, that if an Event of Default (as
defined in the Declaration) has occurred and is continuing, the rights of
holders of such Common Securities to payment in respect of distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of such Capital Securities.

 

“Company” means PACIFIC
PREMIER BANCORP, INC., a savings and loan holding company incorporated in the
State of Delaware, and, subject to the provisions of Article XI, shall include
its successors and assigns.

 

“Debt Security” or “Debt
Securities” has the meaning stated in the first recital of this Indenture.

 

“Debt Security Register”
has the meaning specified in Section 2.05.

 

“Declaration” means the
Amended and Restated Declaration of Trust of the Trust, dated as of March 25,
2004, as amended or supplemented from time to time.

 

“Default” means any
event, act or condition that with notice or lapse of time, or both, would
constitute an Event of Default.

 

“Defaulted Interest” has
the meaning set forth in Section 2.08.

 

“Deferred Interest” has
the meaning set forth in Section 2.11.

 

“Event of Default” means
any event specified in Section 5.01, which has continued for the period of
time, if any, and after the giving of the notice, if any, therein designated.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Extension Period” has
the meaning set forth in Section 2.11.

 

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

 

“Indenture” means this
Indenture as originally executed or, if amended or supplemented as herein
provided, as so amended or supplemented, or both.

 

“Institutional Trustee”
has the meaning set forth in the Declaration.

 

“Interest Payment Date”
means January 7, April 7, July 7 and October 7 of each year, commencing on July
7, 2004, subject to Section 14.07.

 

3

 

“Interest Period” has the
meaning set forth in Section 2.08.

 

“Interest Rate” means,
with respect to any Interest Period, a per annum rate of interest equal to
LIBOR, as determined on the LIBOR Determination Date for such Interest Period
(or, in the case of the first Interest Period, will be 1.11%), plus 2.75%; provided,
however, that the Interest Rate for any Interest Period may not exceed
the highest rate permitted by New York law, as the same may be modified by
United States law of general application.

 

“Investment Company
Event” means the receipt by the Company and the Trust of an Opinion of Counsel
experienced in such matters to the effect that, as a result of a change in law
or regulation or 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 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 of
1940, as amended, which change becomes effective or would become effective, as
the case may be, on or after the date of the original issuance of the Debt
Securities.

 

“LIBOR” means the London
Interbank Offered Rate for three-month U.S. Dollar deposits in Europe as
determined by the Calculation Agent according to Section 2.10(b).

 

“LIBOR Banking Day” has
the meaning set forth in Section 2.10(b)(i).

 

“LIBOR Business Day” has
the meaning set forth in Section 2.10(b)(i).

 

“LIBOR Determination
Date” has the meaning set forth in Section 2.10(b)(i).

 

“Liquidation Amount”
means the liquidation amount of $1,000 per Trust Security.

 

“Maturity Date” means April
6, 2034, subject to Section 14.07.

 

“Officers’ Certificate”
means a certificate signed by the Chairman of the Board, the Vice Chairman, the
President or any Vice President, and by the Chief Financial Officer, the
Treasurer, an Assistant Treasurer, the Comptroller, an Assistant Comptroller,
the Secretary or an Assistant Secretary of the Company, and delivered to the
Trustee.  Each such certificate shall
include the statements provided for in Section 14.06 if and to the extent
required by the provisions of such Section.

 

“Opinion of Counsel”
means an opinion in writing signed by legal counsel, who may be an employee of
or counsel to the Company or may be other counsel reasonably satisfactory to
the Trustee.  Each such opinion shall
include the statements provided for in Section 14.06 if and to the extent
required by the provisions of such Section.

 

The term “outstanding,”
when used with reference to Debt Securities, subject to the provisions of
Section 7.04, means, as of any particular time, all Debt Securities
authenticated and delivered by the Trustee or the Authenticating Agent under
this Indenture, except

 

(a)           Debt Securities theretofore canceled
by the Trustee or the Authenticating Agent or delivered to the Trustee for
cancellation;

 

4

 

(b)           Debt Securities, or portions thereof,
for the payment or redemption of which moneys in the necessary amount shall
have been deposited in trust with the Trustee or with any Paying Agent (other
than the Company) or shall have been set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent); provided,
that, if such Debt Securities, or portions thereof, are to be redeemed prior to
maturity thereof, notice of such redemption shall have been given as provided
in Articles X and XIV or provision satisfactory to the Trustee shall have been
made for giving such notice; and

 

(c)           Debt Securities paid pursuant to
Section 2.06 or in lieu of or in substitution for which other Debt Securities
shall have been authenticated and delivered pursuant to the terms of Section
2.06 unless proof satisfactory to the Company and the Trustee is presented that
any such Debt Securities are held by bona fide holders in due course.

 

“Optional Redemption
Date” has the meaning set forth in Section 10.01.

 

“Optional Redemption
Price” means an amount in cash equal to 100% of the principal amount of the
Debt Securities being redeemed plus unpaid interest accrued on such Debt Securities
to the related Optional Redemption Date.

 

“OTS” means the Office of
Thrift Supervision.

 

“Paying Agent” has the
meaning set forth in Section 3.04(e).

 

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

 

“Predecessor Security” of
any particular Debt Security means every previous Debt Security evidencing all
or a portion of the same debt as that evidenced by such particular Debt
Security; and, for the purposes of this definition, any Debt Security
authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or
stolen Debt Security shall be deemed to evidence the same debt as the lost,
destroyed or stolen Debt Security.

 

“Principal Office of the
Trustee” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which at all times
shall be located within the United States and at the time of the execution of
this Indenture shall be Rodney Square North, 1100 North Market Street,
Wilmington, DE 19890-0001.

 

“Reference Banks” has the
meaning set forth in Section 2.10(b)(ii).

 

“Resale Restriction
Termination Date” means, with respect to any Debt Security, the date which is
the later of (i) two years (or such shorter period of time as permitted by Rule
144(k) under the Securities Act) after the later of (y) the date of original
issuance of such Debt Security and (z) the last date on which the Company or
any Affiliate (as defined in Rule 405 under the Securities Act) of the Company
was the holder of such Debt Security (or any predecessor thereto) and (ii) such
later date, if any, as may be required by any subsequent change in applicable
law.

 

5

 

“Responsible Officer” means, with respect to the
Trustee, any officer within the Principal Office of the Trustee with direct
responsibility for the administration of the Indenture, including any
vice-president, any assistant vice-president, any secretary, any assistant
secretary, the treasurer, any assistant treasurer, any trust officer or other
officer of the Principal Office of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of that officer’s knowledge of and
familiarity with the particular subject.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Securityholder,” “holder
of Debt Securities” or other similar terms, means any Person in whose name at
the time a particular Debt Security is registered on the Debt Security
Register.

 

“Senior Indebtedness”
means, with respect to the Company, (i) the principal, premium, if any, and
interest in respect of (A) indebtedness of the Company for money borrowed and
(B) indebtedness evidenced by securities, debentures, notes, bonds or other
similar instruments issued by the Company, (ii) all capital lease obligations
of the Company, (iii) all obligations of the Company issued or assumed as the
deferred purchase price of property, all conditional sale obligations of the
Company and all obligations of the Company under any title retention agreement
(but excluding trade accounts payable arising in the ordinary course of
business), (iv) all obligations of the Company for the reimbursement of any
letter of credit, any banker’s acceptance, any security purchase facility, any
repurchase agreement or similar arrangement, any interest rate swap, any other
hedging arrangement, any obligation under options or any similar credit or
other transaction, (v) all obligations of the type referred to in clauses (i)
through (iv) above of other Persons for the payment of which the Company is
responsible or liable as obligor, guarantor or otherwise and (vi) all
obligations of the type referred to in clauses (i) through (v) above of other
Persons secured by any lien on any property or asset of the Company (whether or
not such obligation is assumed by the Company), whether incurred on or prior to
the date of this Indenture or thereafter incurred, unless, with the prior
approval of the OTS if not otherwise generally approved, 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 or are pari passu in right of
payment to the Debt Securities; provided, however, that Senior
Indebtedness shall not include (A) any debt securities issued to any trust
other than the Trust (or a trustee of such trust) that is a financing vehicle
of the Company (a “financing entity”), in connection with the issuance by such
financing entity of equity or other securities in transactions substantially
similar in structure to the transactions contemplated hereunder and in the
Declaration or (B) any guarantees of the Company in respect of the equity or
other securities of any financing entity referred to in clause (A) above.

 

“Special Event” means any
of a Tax Event, an Investment Company Event or a Capital Treatment Event.

 

“Special Redemption Date”
has the meaning set forth in Section 10.02.

 

6

 

“Special Redemption Price” means, with respect to the
redemption of any Debt Security following a Special Event, an amount in cash
equal to 103.525% of the principal amount of Debt Securities to be redeemed
prior to April 7, 2005 and thereafter equal to the percentage of the principal
amount of the Debt Securities that is specified below for the Special
Redemption Date plus, in each case, unpaid interest accrued thereon to the
Special Redemption Date:

 

	
  Special Redemption During the
  12-Month

  Period Beginning April 7,

  	
   

  	
  Percentage
  of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  103.140

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  102.355

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  101.570

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  100.785

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

“Subsidiary” means, with respect to any Person, (i)
any corporation, at least a majority of the outstanding voting stock of which
is owned, directly or indirectly, by such Person or one or more of its
Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any
general partnership, joint venture or similar entity, at least a majority of
the outstanding partnership or similar interests of which shall at the time be
owned by such Person or one or more of its Subsidiaries or by such Person and
one or more of its Subsidiaries, and (iii) any limited partnership of which
such Person or any of its Subsidiaries is a general partner.  For the purposes of this definition, “voting
stock” means shares, interests, participations or other equivalents in the
equity interest (however designated) in such Person having ordinary voting
power for the election of a majority of the directors (or the equivalent) of
such Person, other than shares, interests, participations or other equivalents
having such power only by reason of the occurrence of a contingency.

 

“Tax Event” means the receipt by the Company and the
Trust of an Opinion of Counsel experienced in such matters to the effect that,
as a result of any amendment to or change (including any announced prospective
change) in the laws or any regulations thereunder of the United States or any
political subdivision or taxing authority thereof or therein, or as a result of
any official administrative pronouncement (including any private letter ruling,
technical advice memorandum, regulatory procedure, notice or announcement (an
“Administrative Action”)) or judicial decision interpreting or applying such
laws or regulations, regardless of whether such Administrative Action or
judicial decision is issued to or in connection with a proceeding involving the
Company or the Trust and whether or not subject to review or appeal, which
amendment, clarification, change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance
of the Debt Securities, there is more than an insubstantial risk that: (i) the
Trust is, or will be within 90 days of the date of such opinion, subject to
United States federal income tax with respect to income received or accrued on
the Debt Securities; (ii) if the Company is organized and existing under the
laws of the United

 

7

 

States or any state
thereof or the District of Columbia, interest payable by the Company on the
Debt Securities is not, or within 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 90 days of the
date of such opinion, subject to or otherwise required to pay, or required to
withhold from distributions to holders of Trust Securities, more than a de
minimis amount of other taxes (including withholding taxes), duties,
assessments or other governmental charges.

 

“Telerate Page 3750” has
the meaning set forth in Section 2.10(b)(I).

 

“Trust” means PPBI Trust
I, the Delaware statutory trust, or any other similar trust created for the
purpose of issuing Capital Securities in connection with the issuance of Debt
Securities under this Indenture, of which the Company is the sponsor.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended from time to time, or any
successor legislation.

 

“Trust Securities” means
Common Securities and Capital Securities of the Trust.

 

“Trustee” means the
Person identified as “Trustee” in the first paragraph hereof, and, subject to
the provisions of Article VI hereof, shall also include its successors and
assigns as Trustee hereunder.

 

“United States” means the
United States of America and the District of Columbia.

 

“U.S. Person” has the
meaning given to United States Person as set forth in Section 7701(a)(30) of
the Code.

 

ARTICLE II

DEBT SECURITIES

 

Section 2.01           Authentication
and Dating.

 

Upon the execution and
delivery of this Indenture, or from time to time thereafter, Debt Securities in
an aggregate principal amount not in excess of $10,310,000 may be executed and
delivered by the Company to the Trustee for authentication, and the Trustee
shall thereupon authenticate and make available for delivery said Debt Securities
to or upon the written order of the Company, signed by its Chairman of the
Board of Directors, Vice Chairman, President or Chief Financial Officer or one
of its Vice Presidents, without any further action by the Company hereunder.  In authenticating such Debt Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Debt Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.01) shall be fully protected in relying upon a copy of any Board
Resolution or Board Resolutions relating thereto and, if applicable, an
appropriate record of any action taken pursuant to such resolution, in each
case certified by the Secretary or an Assistant Secretary or other officers
with appropriate delegated authority of the Company as the case may be.

 

8

 

The Trustee shall have the right to decline to
authenticate and deliver any Debt Securities under this Section if the Trustee,
being advised by counsel, determines that such action may not lawfully be taken
or if a Responsible Officer of the Trustee in good faith shall determine that
such action would expose the Trustee to personal liability to existing
Securityholders.

 

The definitive Debt
Securities shall be typed, printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the
officers executing such Debt Securities, as evidenced by their execution of
such Debt Securities.

 

Section 2.02           Form
of Trustee’s Certificate of Authentication.

 

The Trustee’s certificate
of authentication on all Debt Securities shall be in substantially the
following form:

 

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

 

	
   

  	
  Wilmington Trust Company,

  
	
   

  	
   

  	
  not in its individual capacity

  
	
   

  	
   

  	
  but solely as trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

Section 2.03           Form
and Denomination of Debt Securities.

 

The Debt Securities shall
be substantially in the form of Exhibit A hereto.  The Debt Securities shall be in registered, certificated form
without coupons and in minimum denominations of $100,000 and any multiple of
$1,000 in excess thereof.  The Debt
Securities shall be numbered, lettered, or otherwise distinguished in such
manner or in accordance with such plans as the officers executing the same may
determine with the approval of the Trustee as evidenced by the execution and
authentication thereof.

 

Section 2.04           Execution
of Debt Securities.

 

The Debt Securities shall
be signed in the name and on behalf of the Company by the manual or facsimile
signature of its Chairman of the Board of Directors, Vice Chairman, President
or Chief Financial Officer or one of its Executive Vice Presidents, Senior Vice
Presidents or Vice Presidents, under its corporate seal (if legally required)
which may be affixed thereto or printed, engraved or otherwise reproduced
thereon, by facsimile or otherwise, and which need not be attested.  Only such Debt Securities as shall bear thereon
a certificate of authentication substantially in the form herein before
recited, executed by the Trustee or the Authenticating Agent by the manual
signature of an authorized officer, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose.  Such certificate by the Trustee or the Authenticating Agent upon
any Debt Security executed by the Company shall be conclusive evidence that the
Debt Security so authenticated has been duly authenticated and delivered
hereunder and that the holder is entitled to the benefits of this Indenture.

 

9

 

In case any officer of the Company who shall have
signed any of the Debt Securities shall cease to be such officer before the
Debt Securities so signed shall have been authenticated and delivered by the
Trustee or the Authenticating Agent, or disposed of by the Company, such Debt
Securities nevertheless may be authenticated and delivered or disposed of as
though the Person who signed such Debt Securities had not ceased to be such officer
of the Company; and any Debt Security may be signed on behalf of the Company by
such Persons as, at the actual date of the execution of such Debt Security,
shall be the proper officers of the Company, although at the date of the
execution of this Indenture any such person was not such an officer.

 

Every Debt Security shall
be dated the date of its authentication.

 

Section 2.05           Exchange
and Registration of Transfer of Debt Securities.

 

The Company shall cause
to be kept, at the office or agency maintained for the purpose of registration
of transfer and for exchange as provided in Section 3.02, a register (the “Debt
Security Register”) for the Debt Securities issued hereunder in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration and transfer of all Debt Securities as provided in this
Article II.  Such register shall be in
written form or in any other form capable of being converted into written form
within a reasonable time.

 

Debt Securities to be
exchanged may be surrendered at the Principal Office of the Trustee or at any
office or agency to be maintained by the Company for such purpose as provided
in Section 3.02, and the Company shall execute, the Company or the Trustee
shall register and the Trustee or the Authenticating Agent shall authenticate
and make available for delivery in exchange therefor, the Debt Security or Debt
Securities which the Securityholder making the exchange shall be entitled to
receive.  Upon due presentment for registration
of transfer of any Debt Security at the Principal Office of the Trustee or at
any office or agency of the Company maintained for such purpose as provided in
Section 3.02, the Company shall execute, the Company or the Trustee shall
register and the Trustee or the Authenticating Agent shall authenticate and
make available for delivery in the name of the transferee or transferees, a new
Debt Security for a like aggregate principal amount. Registration or
registration of transfer of any Debt Security by the Trustee or by any agent of
the Company appointed pursuant to Section 3.02, and delivery of such Debt
Security, shall be deemed to complete the registration or registration of
transfer of such Debt Security.

 

All Debt Securities
presented for registration of transfer or for exchange or payment shall (if so
required by the Company or the Trustee or the Authenticating Agent) be duly
endorsed by, or be accompanied by, a written instrument or instruments of
transfer in form satisfactory to the Company and either the Trustee or the
Authenticating Agent duly executed by, the holder or such holder’s attorney
duly authorized in writing.

 

No service charge shall
be made for any exchange or registration of transfer of Debt Securities, but
the Company or the Trustee may require payment of a sum sufficient to cover any
tax, fee or other governmental charge that may be imposed in connection
therewith other than exchanges pursuant to Section 2.07, Section 9.04 or
Section 10.04 not involving any transfer.

 

10

 

The Company or the Trustee shall not be required to
exchange or register a transfer of any Debt Security for a period of 15 days
immediately preceding the date of selection of Debt Securities for redemption.

 

Notwithstanding the
foregoing, Debt Securities may not be transferred prior to the Resale
Restriction Termination Date except in compliance with the legend set forth
below, unless otherwise determined by the Company in accordance with applicable
law, which legend shall be placed on each Debt Security:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR
ANY OTHER APPLICABLE SECURITIES LAWS. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.  THE HOLDER OF THIS SECURITY OR ANY
INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE
CASE MAY BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY
INTEREST OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i)
TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE
SECURITIES ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND
(Z) THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405
UNDER THE SECURITIES ACT) OF THE COMPANY WAS THE HOLDER OF THIS SECURITY OR
SUCH INTEREST OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER
DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW,
ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
(“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER”, AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN
“ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7)
OR (8) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR
SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH
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, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR
OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT
OR (E)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE

 

11

 

OR
TRANSFER PURSUANT TO CLAUSE (C) OR (E) ABOVE TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT
IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE
COMPANY.  THE HOLDER OF THIS SECURITY OR
ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS
THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

 

THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
(EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY
REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN
ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF
AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION
96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS
PURCHASE AND HOLDING OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION IS NOT
PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO
SUCH PURCHASE OR HOLDING.  ANY PURCHASER
OR HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN WILL BE
DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF OR THEREOF, AS
THE CASE MAY BE, THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE
MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE
IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE
BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY
EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE
AND HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR
ADMINISTRATIVE EXEMPTION.

 

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

 

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN
MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN

 

12

 

EXCESS
THEREOF.  ANY ATTEMPTED TRANSFER OF THIS
SECURITY IN DENOMINATIONS OF LESS THAN $100,000 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 THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN
FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON
THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE
SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR ANY INTEREST
OR PARTICIPATION HEREIN.

 

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”). 
THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE DEPOSITORS AND THE
CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS INELIGIBLE AS
COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES AND IS NOT
SECURED.

 

Section 2.06           Mutilated,
Destroyed, Lost or Stolen Debt Securities.

 

In case any Debt Security
shall become mutilated or be destroyed, lost or stolen, the Company shall
execute, and upon its written request the Trustee shall authenticate and
deliver, a new Debt Security bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Debt Security, or
in lieu of and in substitution for the Debt Security so destroyed, lost or
stolen.  In every case the applicant for
a substituted Debt Security shall furnish to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company and the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Debt Security and of the ownership thereof.

 

The Trustee may
authenticate any such substituted Debt Security and deliver the same upon the
written request or authorization of any officer of the Company.  Upon the issuance of any substituted Debt
Security, 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 connected therewith. 
In case any Debt Security which has matured or is about to mature or has
been called for redemption in full shall become mutilated or be destroyed, lost
or stolen, the Company may, instead of issuing a substitute Debt Security, pay
or authorize the payment of the same (without surrender thereof except in the
case of a mutilated Debt Security) if the applicant for such payment shall
furnish to the Company and the Trustee such security or indemnity as may be
required by them to save each of them harmless and, in case of destruction,
loss or theft, evidence satisfactory to the Company and to the Trustee of the
destruction, loss or theft of such Security and of the ownership thereof.

 

Every substituted Debt
Security issued pursuant to the provisions of this Section 2.06 by virtue of
the fact that any such Debt Security is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Debt Security shall be found at any time, and shall
be entitled to all the benefits of this Indenture

 

13

 

equally and proportionately with any and all other Debt Securities duly
issued hereunder.  All Debt Securities
shall be held and owned upon the express condition that, to the extent
permitted by applicable law, the foregoing provisions are exclusive with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Debt Securities and shall preclude any and all other rights or remedies notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect
to the replacement or payment of negotiable instruments or other securities
without their surrender.

 

Section 2.07           Temporary
Debt Securities.

 

Pending the preparation
of definitive Debt Securities, the Company may execute and the Trustee shall
authenticate and make available for delivery temporary Debt Securities that are
typed, printed or lithographed. Temporary Debt Securities shall be issuable in
any authorized denomination, and substantially in the form of the definitive
Debt Securities but with such omissions, insertions and variations as may be
appropriate for temporary Debt Securities, all as may be determined by the
Company.  Every such temporary Debt
Security shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with the
same effect, as the definitive Debt Securities.  Without unreasonable delay, the Company will execute and deliver
to the Trustee or the Authenticating Agent definitive Debt Securities and
thereupon any or all temporary Debt Securities may be surrendered in exchange
therefor, at the Principal Office of the Trustee or at any office or agency
maintained by the Company for such purpose as provided in Section 3.02, and the
Trustee or the Authenticating Agent shall authenticate and make available for
delivery in exchange for such temporary Debt Securities a like aggregate
principal amount of such definitive Debt Securities.  Such exchange shall be made by the Company at its own expense and
without any charge therefor except that in case of any such exchange involving
a registration of transfer the Company may require payment of a sum sufficient
to cover any tax, fee or other governmental charge that may be imposed in
relation thereto.  Until so exchanged,
the temporary Debt Securities shall in all respects be entitled to the same
benefits under this Indenture as definitive Debt Securities authenticated and
delivered hereunder.

 

Section 2.08           Payment
of Interest.

 

Each Debt Security will
bear interest at the then applicable Interest Rate (i) in the case of the
initial Interest Period, for the period from, and including, the date of
original issuance of such Debt Security to, but excluding, the initial Interest
Payment Date and (ii) thereafter, for the period from, and including, the first
day following the end of the preceding Interest Period to, but excluding, the
applicable Interest Payment Date or, in the case of the last Interest Period,
the related Optional Redemption Date, Special Redemption Date or Maturity Date,
as applicable (each such period, an “Interest Period”), on the principal
thereof, on any overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) on Deferred Interest and on any
overdue installment of interest (including Defaulted Interest), payable
(subject to the provisions of Article XII) on each Interest Payment Date and on
the Maturity Date, any Optional Redemption Date or the Special Redemption Date,
as the case may be.  Interest and any
Deferred Interest on any Debt Security that is payable, and is punctually paid
or duly provided for by the Company, on any Interest Payment Date shall be paid
to the Person in whose name such Debt Security (or one or more Predecessor
Securities) is registered at the close

 

14

 

of business on the regular record date for such interest installment,
except that interest and any Deferred Interest payable on the Maturity Date,
any Optional Redemption Date or the Special Redemption Date, as the case may
be, shall be paid to the Person to whom principal is paid.  In case (i) the Maturity Date of any
Debt Security or (ii) any Debt Security or portion thereof is called for
redemption and the related Optional Redemption Date or the Special Redemption
Date, as the case may be, is subsequent to the regular record date with respect
to any Interest Payment Date and prior to such Interest Payment Date, interest
on such Debt Security will be paid upon presentation and surrender of such Debt
Security.

 

Any interest on any Debt Security, other than Deferred
Interest, that is payable, but is not punctually paid or duly provided for by
the Company, on any Interest Payment Date (herein called “Defaulted Interest”)
shall forthwith cease to be payable to the holder on the relevant regular
record date by virtue of having been such holder, and such Defaulted Interest
shall be paid by the Company to the Persons in whose names such Debt 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,
which shall be fixed in the following manner: 
the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Debt 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
reasonably 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 as provided in this
paragraph.  Thereupon the Trustee shall
fix a special record date for the payment of such Defaulted Interest, which
shall not be more than fifteen nor less than ten days prior to the date of the
proposed payment and not less than ten 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 Securityholder at his or her
address as it appears in the Debt Security Register, not less than ten days
prior to such special record date. 
Notice of the proposed payment of such Defaulted Interest and the
special record date therefor having been mailed as aforesaid, such Defaulted
Interest shall be paid to the Persons in whose names such Debt Securities (or
their respective Predecessor Securities) are registered on  such special record date and thereafter the
Company shall have no further payment obligation in respect of the Defaulted
Interest.

 

Any interest scheduled to
become payable on an Interest Payment Date occurring during an Extension Period
shall not be Defaulted Interest and shall be payable on such other date as may
be specified in the terms of such Debt Securities.

 

The term “regular record
date”, as used in this Section, shall mean the fifteenth day prior to the
applicable Interest Payment Date, whether or not such day is a Business Day.

 

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

 

15

 

Section 2.09           Cancellation
of Debt Securities Paid, etc.

 

All Debt Securities surrendered for the purpose of
payment, redemption, exchange or registration of transfer, shall, if
surrendered to the Company or any Paying Agent, be surrendered to the Trustee
and promptly canceled by it, or, if surrendered to the Trustee or any
Authenticating Agent, shall be promptly canceled by it, and no Debt Securities
shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture.  All Debt
Securities canceled by any Authenticating Agent shall be delivered to the
Trustee.  The Trustee shall destroy all
canceled Debt Securities unless the Company otherwise directs the Trustee in
writing, in which case the Trustee shall dispose of such Debt Securities as
directed by the Company.  If the Company
shall acquire any of the Debt Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Debt Securities unless and until the same are surrendered to the Trustee for
cancellation.

 

Section 2.10           Computation
of Interest.

 

(a)           The amount of interest payable for
any Interest Period will be computed on the basis of a 360-day year and the
actual number of days elapsed in such Interest Period.

 

(b)           LIBOR shall be determined by the
Calculation Agent for each Interest Period (other than the first Interest
Period, in which case LIBOR will be 1.11% per annum) in accordance with the
following provisions:

 

(i)            On the second LIBOR Business Day
(provided, that on such day commercial banks are open for business (including
dealings in foreign currency deposits) in London (a “LIBOR Banking Day”), and
otherwise the next preceding LIBOR Business Day that is also a LIBOR Banking
Day) prior to the January 15, April 15, July 15 or October 15, as the case may
be, immediately succeeding the commencement of such Interest Period (each such
day, a “LIBOR Determination Date”), LIBOR shall equal the rate, as obtained by
the Calculation Agent, for three-month U.S. Dollar deposits in Europe, which
appears on Telerate (as defined in the International Swaps and Derivatives
Association, Inc. 2000 Interest Rate and Currency Exchange Definitions) page
3750 or such other page as may replace such page 3750, as of 11:00 a.m. (London
time) on such LIBOR Determination Date, as reported by Bloomberg Financial
Markets Commodities News or any successor service (“Telerate Page 3750”).  “LIBOR Business Day” means any day that is
not a Saturday, Sunday or other day on which commercial banking institutions in
The City of New York or Wilmington, Delaware are authorized or obligated by law
or executive order to be closed.  If
such rate is superseded on Telerate Page 3750 by a corrected rate before 12:00
noon (London time) on such LIBOR Determination Date, the corrected rate as so
substituted will be LIBOR for such LIBOR Determination Date.

 

(ii)           If, on such LIBOR Determination Date,
such rate does not appear on Telerate Page 3750, the Calculation Agent shall
determine the arithmetic mean of the offered quotations of the Reference Banks to
leading banks in the London interbank market for three-month U.S. Dollar
deposits in Europe (in an amount determined by the Calculation Agent) by
reference to requests for quotations as of approximately 11:00 a.m.

 

16

 

(London time) on
such LIBOR Determination Date made by the Calculation Agent to the Reference
Banks.  If, on such LIBOR Determination
Date, at least two of the Reference Banks provide such quotations, LIBOR shall
equal the arithmetic mean of such quotations. 
If, on such LIBOR Determination Date, only one or none of the Reference
Banks provide such a quotation, LIBOR shall be deemed to be the arithmetic mean
of the offered quotations that at least two leading banks in The City of New
York (as selected by the Calculation Agent) are quoting on such LIBOR
Determination Date for three-month U.S. Dollar deposits in Europe at
approximately 11:00 a.m. (London time) (in an amount determined by the
Calculation Agent). As used herein, “Reference Banks” means four major banks in
the London interbank market selected by the Calculation Agent.

 

(iii)          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 for such Interest Period shall be LIBOR in
effect for the immediately preceding Interest Period.

 

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

 

(d)           On each LIBOR Determination Date, the
Calculation Agent shall notify, in writing, the Company and the Paying Agent of
the applicable Interest Rate that applies to the related Interest Period.  The Calculation Agent shall, upon the request
of a holder of any Debt Securities, inform such holder of the Interest Rate
that applies to the related Interest Period. 
All calculations made by the Calculation Agent in the absence of
manifest error shall be conclusive for all purposes and binding on the Company
and the holders of the Debt Securities. 
The Paying Agent shall be entitled to rely on information received from
the Calculation Agent or the Company as to the applicable Interest Rate.  The Company shall, from time to time,
provide any necessary information to the Paying Agent relating to any original
issue discount and interest on the Debt Securities that is included in any
payment and reportable for taxable income calculation purposes.

 

Section 2.11           Extension
of Interest Payment Period.

 

So long as no Event of Default has occurred and is
continuing, the Company shall have the right, from time to time and without
causing an Event of Default, to defer payments of interest on the Debt
Securities by extending the interest payment period on the Debt Securities at
any time and from time to time during the term of the Debt Securities, for up
to 20 consecutive quarterly periods (each such extended interest payment
period, together with all previous and further consecutive extensions thereof,
is referred to herein as an “Extension Period”).  No Extension Period may end on a date other than an Interest
Payment Date or extend beyond the Maturity Date, any Optional Redemption Date
or the Special Redemption Date, as the case may be.  During any Extension Period, interest will continue to accrue on
the Debt Securities, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as “Deferred Interest”) will
accrue at an annual rate equal to the Interest Rate applicable during such
Extension Period, compounded quarterly from the date such Deferred Interest
would have

 

17

 

been payable were it not
for the Extension Period, to the extent permitted by applicable law.  No interest or Deferred Interest (except any
Additional Amounts that may be due and payable) shall be due and payable during
an Extension Period, except at the end thereof.  At the end of any Extension Period, the Company shall pay all
Deferred Interest then accrued and unpaid on the Debt Securities; provided,
however, that during any Extension Period, the Company shall be subject
to the restrictions set forth in Section 3.08. 
Prior to the termination of any Extension Period, the Company may
further extend such Extension Period, provided, that no Extension Period
(including all previous and further consecutive extensions that are part of
such Extension Period) shall exceed 20 consecutive quarterly periods.  Upon the termination of any Extension Period
and upon the payment of all Deferred Interest, the Company may commence a new
Extension Period, subject to the foregoing requirements.  The Company must give the Trustee notice of
its election to begin or extend an Extension Period at least one Business Day
prior to the regular record date applicable to the next succeeding Interest
Payment Date.  The Trustee shall give
notice of the Company’s election to begin or extend an Extension Period to the
Securityholders.

 

Section 2.12           CUSIP
Numbers.

 

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

 

ARTICLE
III

PARTICULAR COVENANTS OF THE COMPANY

 

Section 3.01           Payment
of Principal, Premium and Interest; Agreed Treatment of the Debt Securities.

 

(a)           The Company covenants and agrees that
it will duly and punctually pay or cause to be paid all payments due in respect
of the Debt Securities at the place, at the respective times and in the manner
provided in this Indenture and the Debt Securities.  Payment of the principal of and premium, if any, and interest on
the Debt Securities due on the Maturity Date, any Optional Redemption Date or
the Special Redemption Date, as the case may be, will be made by the Company in
immediately available funds against presentation and surrender of such Debt
Securities.  At the option of the
Company, each installment of interest on the Debt Securities due on an Interest
Payment Date other than the Maturity Date, any Optional Redemption Date or the
Special Redemption Date, as the case may be, may be paid (i) by mailing checks
for such interest payable to the order of the holders of Debt Securities
entitled thereto as they appear on the Debt Security Register or (ii) by wire
transfer of immediately available funds to any account with a banking
institution located in the United States designated by such holders to the
Paying Agent no later than the related record date.  Notwithstanding anything to the contrary contained in this
Indenture or any Debt Security, if the Trust or the

 

18

 

trustee of the Trust is the holder of any Debt Security, then all
payments in respect of such Debt Security shall be made by the Company in
immediately available funds when due.

 

(b)           The Company will treat the Debt
Securities as indebtedness, and the interest payable in respect of such Debt
Securities as interest, for all U.S. federal income tax purposes.  All payments in respect of such Debt 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-8 BEN (or any
substitute or successor form) establishing its non-U.S. status for U.S. federal
income tax purposes.

 

(c)           As of the date of this Indenture, the
Company represents that it has no intention to exercise its right under Section
2.11 to defer payments of interest on the Debt Securities by commencing an
Extension Period.

 

(d)           As of the date of this Indenture, the
Company represents that the likelihood that it would exercise its right under
Section 2.11 to defer payments of interest on the Debt Securities by commencing
an Extension Period at any time during which the Debt Securities are
outstanding is remote because of the restrictions that would be imposed on the
Company’s ability to declare or pay dividends or distributions on, or to
redeem, purchase or make a liquidation payment with respect to, any of its
outstanding equity and on the Company’s ability to make any payments of
principal of or premium, if any, or interest on, or repurchase or redeem, any
of its debt securities that rank pari passu in all respects with or junior
in interest to the Debt Securities.

 

Section 3.02           Offices
for Notices and Payments, etc.

 

So long as any of the Debt Securities remain
outstanding, the Company will maintain in Wilmington, Delaware or in Sacramento,
California an office or agency where the Debt Securities may be presented for
payment, an office or agency where the Debt Securities may be presented for
registration of transfer and for exchange as provided in this Indenture and an
office or agency where notices and demands to or upon the Company in respect of
the Debt Securities or of this Indenture may be served.  The Company will give to the Trustee written
notice of the location of any such office or agency and of any change of
location thereof.  Until otherwise
designated from time to time by the Company in a notice to the Trustee, or
specified as contemplated by Section 2.05, such office or agency for all of the
above purposes shall be the Principal Office of the Trustee.  In case the Company shall fail to maintain
any such office or agency in Wilmington, Delaware or in Sacramento, California,
or shall fail to give such notice of the location or of any change in the
location thereof, presentations and demands may be made and notices may be
served at the Principal Office of the Trustee.

 

In addition to any such
office or agency, the Company may from time to time designate one or more
offices or agencies outside Wilmington, Delaware or Sacramento, California
where the Debt Securities may be presented for registration of transfer and for
exchange in the manner provided in this Indenture, and the Company may from
time to time rescind such designation, as the Company may deem desirable or
expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain any such office or agency in Wilmington, Delaware or in Sacramento,
California for

 

19

 

the purposes above mentioned. 
The Company will give to the Trustee prompt written notice of any such
designation or rescission thereof.

 

Section 3.03           Appointments
to Fill Vacancies in Trustee’s Office.

 

The Company, whenever necessary to avoid or fill a
vacancy in the office of Trustee, will appoint, in the manner provided in
Section 6.09, a Trustee, so that there shall at all times be a Trustee
hereunder.

 

Section 3.04           Provision
as to Paying Agent.

 

(a)           If the Company shall appoint a Paying
Agent other than the Trustee, it will cause such Paying Agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provision of this Section 3.04,

 

(i)            that it will hold all sums held by
it as such agent for the payment of all payments due on the Debt Securities
(whether such sums have been paid to it by the Company or by any other obligor
on the Debt Securities) in trust for the benefit of the holders of the Debt
Securities;

 

(ii)           that it will give the Trustee prompt
written notice of any failure by the Company (or by any other obligor on the
Debt Securities) to make any payment on 
the Debt Securities when the same shall be due and payable; and

 

(iii)          that it will, at any time during the
continuance of any Event of Default, upon the written request of the Trustee,
forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

(b)           If the Company shall act as its own Paying
Agent, it will, on or before each due date of the payments due on the Debt
Securities, set aside, segregate and hold in trust for the benefit of the
holders of the Debt Securities a sum sufficient to make such payments so
becoming due and will notify the Trustee in writing of any failure to take such
action and of any failure by the Company (or by any other obligor under the
Debt Securities) to make any payment on the Debt Securities when the same shall
become due and payable.

 

Whenever the Company shall
have one or more Paying Agents for the Debt Securities, it will, on or prior to
each due date of the payments on the Debt Securities, deposit with a Paying
Agent a sum sufficient to pay all payments so becoming due, such sum to be held
in trust for the benefit of the Persons entitled thereto and (unless such
Paying Agent is the Trustee) the Company shall promptly notify the Trustee in
writing of its action or failure to act.

 

(c)           Anything in this Section 3.04 to the
contrary notwithstanding, the Company may, at any time, for the purpose of
obtaining a satisfaction and discharge with respect to the Debt Securities, or
for any other reason, pay, or direct any Paying Agent to pay, to the Trustee
all sums held in trust by the Company or any such Paying Agent, such sums to be
held by the Trustee upon the same terms and conditions herein contained.

 

20

 

(d)           Anything in this Section 3.04 to the
contrary notwithstanding, the agreement to hold sums in trust as provided in
this Section 3.04 is subject to Sections 12.03 and 12.04.

 

(e)           The Company hereby initially appoints
the Trustee to act as paying agent for the Debt Securities (the “Paying
Agent”).

 

Section 3.05           Certificate
to Trustee.

 

The Company will deliver
to the Trustee on or before 120 days after the end of each fiscal year, so long
as Debt Securities are outstanding hereunder, a Certificate stating that in the
course of the performance by the signers of their duties as officers of the
Company they would normally have knowledge of any default by the Company in the
performance of any covenants of the Company contained herein, stating whether
or not they have knowledge of any such default and, if so, specifying each such
default of which the signers have knowledge and the nature thereof.

 

Section 3.06           Additional
Amounts.

 

If and for so long as the
Trust is the holder of all Debt Securities and is subject to or otherwise
required to pay (or is required to withhold from distributions to holders of
Trust Securities) any additional taxes (including withholding taxes), duties,
assessments or other governmental charges as a result of a Tax Event, the
Company will pay such additional amounts (the “Additional Amounts”) on the Debt
Securities or the Trust Securities, as the case may be, as shall be required so
that the net amounts received and retained by the holders of Debt Securities or
Trust Securities, as the case may be, after payment of all taxes (including
withholding taxes), duties, assessments or other governmental charges, will be
equal to the amounts that such holders would have received and retained had no
such taxes (including withholding taxes), duties, assessments or other
governmental charges been imposed.

 

Whenever in this
Indenture or the Debt Securities there is a reference in any context to the
payment of principal of or premium, if any, or interest on the Debt Securities,
such mention shall be deemed to include mention of payments of the Additional
Amounts provided for in this Section to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to
the provisions of this Section and express mention of the payment of Additional
Amounts (if applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not
made, provided, however, that, notwithstanding anything to the
contrary contained in this Indenture or any Debt Security, the deferral of the
payment of interest during an Extension Period pursuant to Section 2.11 shall
not defer the payment of any Additional Amounts that may be due and payable.

 

Section 3.07           Compliance
with Consolidation Provisions.

 

The Company will not, while any of the Debt Securities
remain outstanding, consolidate with, or merge into, any other Person, or merge
into itself, or sell, convey, transfer or otherwise dispose of all or
substantially all of its property or capital stock to any other Person unless
the provisions of Article XI hereof are complied with.

 

21

 

Section 3.08           Limitation
on Dividends.

 

If (i) there shall have occurred and be continuing a
Default or an Event of Default, (ii) the Company shall be in default with
respect to its payment of any obligations under the Capital Securities
Guarantee or (iii) the Company shall have given notice of its election to defer
payments of interest on the Debt Securities by extending the interest payment
period as provided herein and such period, or any extension thereof, shall have
commenced and be continuing, then the Company may not (A) 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, (B) make
any payment of principal of or premium, if any, or interest 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 Debt Securities or (C) make any
payment under any guarantees of the Company that rank pari passu in all respects
with or junior in interest to the Capital Securities Guarantee (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of
the Company (I) in connection with any employment contract, benefit plan or
other similar arrangement with or for the benefit of one or more employees,
officers, directors or consultants, (II) in connection with a dividend
reinvestment or stockholder stock purchase plan or (III) 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 occurrence of (i), (ii) or (iii) above,
(b) as a result of any 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 stockholder’s rights plan, or the issuance
of rights, stock or other property under any stockholder’s 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 in interest to such stock).

 

Section 3.09           Covenants
as to the Trust.

 

For so long as such Trust
Securities remain outstanding, the Company shall maintain 100% ownership of the
Common Securities; provided, however, that any permitted
successor of the Company under this Indenture may succeed to the Company’s
ownership of such Common Securities. 
The Company, as owner of the Common Securities, shall use commercially
reasonable efforts to cause the Trust (a) to remain a statutory trust, except
in connection with a distribution of Debt Securities to the holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust
Securities or mergers, consolidations or amalgamations, each as permitted by
the Declaration, (b) to otherwise continue to be classified as a grantor trust
for United States federal income tax purposes and (c) to cause each holder of
Trust Securities to be treated as owning an undivided beneficial interest in
the Debt Securities.

 

22

 

ARTICLE IV

LISTS

 

Section 4.01           Securityholders’
Lists.

 

The Company covenants and agrees that it will furnish
or cause to be furnished to the Trustee:

 

(a)           on
each regular record date for an Interest Payment Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the
Securityholders of the Debt Securities as of such record date; and

 

(b)           at
such other times as the Trustee may request in writing, within 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 15 days prior to the time such list is
furnished; except that no such lists need be furnished under this Section 4.01
so long as the Trustee is in possession thereof by reason of its acting as Debt
Security registrar.

 

Section 4.02           Preservation
and Disclosure of Lists.

 

(a)           The Trustee shall preserve, in as
current a form as is reasonably practicable, all information as to the names
and addresses of the holders of Debt Securities (1) contained in the most
recent list furnished to it as provided in Section 4.01 or (2) received by it
in the capacity of Debt Securities registrar (if so acting) hereunder.  The Trustee may destroy any list furnished
to it as provided in Section 4.01 upon receipt of a new list so furnished.

 

(b)           In case three or more holders of Debt
Securities (hereinafter referred to as “applicants”) apply in writing to the
Trustee and furnish to the Trustee reasonable proof that each such applicant
has owned a Debt Security for a period of at least six months preceding the
date of such application, and such application states that the applicants
desire to communicate with other holders of Debt Securities with respect to
their rights under this Indenture or under such Debt Securities and is
accompanied by a copy of the form of proxy or other communication which such
applicants propose to transmit, then the Trustee shall within five Business
Days after the receipt of such application, at its election, either:

 

(i)            afford such applicants access to the
information preserved at the time by the Trustee in accordance with the
provisions of subsection (a) of this Section 4.02, or

 

(ii)           inform such applicants as to the
approximate number of holders of Debt Securities whose names and addresses
appear in the information preserved at the time by the Trustee in accordance
with the provisions of subsection (a) of this Section 4.02, and as to the
approximate cost of mailing to such Securityholders the form of proxy or other
communication, if any, specified in such application.

 

If the Trustee shall elect not to afford such
applicants access to such information, the Trustee shall, upon the written
request of such applicants, mail to each Securityholder of Debt Securities
whose name and address appear in the information preserved at the time by the

 

23

 

Trustee in accordance with the provisions of subsection (a) of this
Section 4.02 a copy of the form of proxy or other communication which is
specified in such request with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the
payment, of the reasonable expenses of mailing, unless within five days after
such tender, the Trustee shall mail to such applicants and file with the
Securities and Exchange Commission, if permitted or required by applicable law,
together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to
the best interests of the holders of all Debt Securities, as the case may be,
or would be in violation of applicable law. 
Such written statement shall specify the basis of such opinion.  If said Commission, as permitted or required
by applicable law, after opportunity for a hearing upon the objections
specified in the written statement so filed, shall enter an order refusing to
sustain any of such objections or if, after the entry of an order sustaining
one or more of such objections, said Commission shall find, after notice and
opportunity for hearing, that all the objections so sustained have been met and
shall enter an order so declaring, the Trustee shall mail copies of such
material to all such Securityholders with reasonable promptness after the entry
of such order and the renewal of such tender; otherwise the Trustee shall be
relieved of any obligation or duty to such applicants respecting their
application.

 

(c)           Each and every holder of Debt
Securities, by receiving and holding the same, agrees with the Company and the
Trustee that none of the Company, the Trustee or any Paying Agent shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the holders of Debt Securities in accordance with the
provisions of subsection (b) of this Section 4.02, regardless of the source
from which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
said subsection (b).

 

Section 4.03           Financial
and Other Information.

 

(a)           The Company shall deliver to each
Securityholder (1) each Report on Form 10-K and Form 10-Q prepared by the
Company and filed with the Securities and Exchange Commission in accordance
with the Exchange Act within 10 Business Days after the filing thereof, (2) if
the Company is not then (y) subject to Section 13 or 15(d) of the Exchange Act
or (z) exempt from reporting pursuant to Rule 12g3-2(b) thereunder, the
information required to be provided by Rule 144A(d)(4) under the Securities Act
and (3) within 30 days after the end of the fiscal year of the Company, Form
1099 or such other annual U.S. federal income tax information statement
required by the Code containing such information with regard to the Debt
Securities held by such holder as is required by the Code and the income tax
regulations of the U.S. Treasury thereunder.

 

(b)           If and so long as a Holder of the
Debt Securities is ALESCO Preferred Funding III, Ltd. or an entity that holds a
pool of trust preferred securities and/or debt securities or a trustee thereof,
the Company will cause copies of its reports on Form H-b(11) to be delivered to
such Holder promptly following their filing with the Federal Reserve.

 

24

 

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

 

Section 5.01           Events
of Default.

 

The following events shall be “Events of Default” with
respect to Debt Securities:

 

(a)           the Company defaults in the payment
of any interest upon any Debt Security when it becomes due and payable, and
continuance of such default for a period of 30 days; for the avoidance of
doubt, an extension of any interest payment period by the Company in accordance
with Section 2.11 of this Indenture shall not constitute a default under this
clause 5.01(a); or

 

(b)           the Company defaults in the payment
of all or any part of the principal of (or premium, if any, on) any Debt
Securities as and when the same shall become due and payable, whether at
maturity, upon redemption, by acceleration of maturity pursuant to Section 5.01
of this Indenture or otherwise; or

 

(c)           the Company defaults in the
performance of, or breaches, any of its covenants or agreements in Sections
3.06, 3.07, 3.08 or 3.09 of this Indenture (other than a covenant or agreement
a default in whose performance or whose breach is elsewhere in this Section
specifically dealt with), and continuance of such default or breach for a
period of 90 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 not less than 25% in aggregate principal amount of the outstanding Debt
Securities, a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a “Notice of Default” hereunder;
or

 

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

 

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

 

(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 Debt Securities to holders of the Trust Securities
in liquidation of their interests in the Trust, (2) the redemption of all of
the outstanding Trust Securities or (3) mergers, consolidations or
amalgamations, each as permitted by the Declaration.

 

25

 

If an Event of Default specified under clause (a), (b)
or (c) of this Section 5.01 occurs and is continuing with respect to the Debt
Securities, then, in each and every such case, either the Trustee or the
holders of not less than 25% in aggregate principal amount of the Debt
Securities then outstanding hereunder, by notice in writing to the Company (and
to the Trustee if given by Securityholders), may declare the entire principal
of the Debt Securities and any premium and interest accrued, but unpaid,
thereon to be due and payable immediately, and upon any such declaration the
same shall become immediately due and payable. 
If an Event of Default specified under clause (d), (e) or (f) of this
Section 5.01 occurs, then, in each and every such case, the entire principal
amount of the Debt Securities and any premium and interest accrued, but unpaid,
thereon shall ipso  facto become immediately due and payable
without further action.

 

The foregoing provisions, however, are subject to the
condition that if, at any time after the principal of the Debt Securities shall
have become due by acceleration, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, (i) the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Debt
Securities and all payments on the Debt Securities which shall have become due
otherwise than by acceleration (with interest upon all such payments and
Deferred Interest, to the extent permitted by law) and such amount as shall be
sufficient to cover reasonable compensation to the Trustee and each predecessor
Trustee, their respective agents, attorneys and counsel, and all other amounts
due to the Trustee pursuant to Section 6.06, if any, and (ii) all Events of
Default under this Indenture, other than the non-payment of the payments in
respect of Debt Securities which shall have become due by acceleration, shall
have been cured, waived or otherwise remedied as provided herein, then, in each
and every such case, the holders of a majority in aggregate principal amount of
the Debt Securities then outstanding, by written notice to the Company and to
the Trustee, may waive all defaults and rescind and annul such acceleration and
its consequences, but no such waiver or rescission and annulment shall extend
to or shall affect any subsequent default or shall impair any right consequent
thereon; provided, however, that if the Debt Securities are held
by the Trust or a trustee of the Trust, such waiver or rescission and annulment
shall not be effective until the holders of a majority in aggregate liquidation
amount of the outstanding Capital Securities of the Trust shall have consented
to such waiver or rescission and annulment.

 

In case the Trustee shall have proceeded to enforce
any right under this Indenture and such proceedings shall have been
discontinued or abandoned because of such rescission or annulment or for any
other reason or shall have been determined adversely to the Trustee, then and
in every such case the Company, the Trustee and the holders of the Debt
Securities shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the Company, the Trustee and
the holders of the Debt Securities shall continue as though no such proceeding
had been taken.

 

Section 5.02           Payment
of Debt Securities on Default; Suit Therefor.

 

The Company covenants
that upon the occurrence of an Event of Default pursuant to clause (a) or (b)
of Section 5.01 and upon demand of the Trustee, the Company will pay to the
Trustee, for the benefit of the holders of the Debt Securities, the whole
amount that then shall have become due and payable on all Debt Securities,
including Deferred Interest accrued on the

 

26

 

Debt Securities; and, in addition thereto, such further amount as shall
be sufficient to cover the costs and expenses of collection, including a
reasonable compensation to the Trustee, its agents, attorneys and counsel, and
any other amounts due to the Trustee under Section 6.06.  In case the Company shall fail forthwith to
pay such amounts upon such demand, the Trustee, in its own name and as trustee
of an express trust, shall be entitled and empowered to institute any actions
or proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company
or any other obligor on such Debt Securities and collect in the manner provided
by law out of the property of the Company or any other obligor on such Debt
Securities wherever situated the moneys adjudged or decreed to be payable.

 

In case there shall be
pending proceedings for the bankruptcy or for the reorganization of the Company
or any other obligor on the Debt Securities under Bankruptcy Law, or in case a
receiver or trustee shall have been appointed for the property of the Company
or such other obligor, or in the case of any other similar judicial proceedings
relative to the Company or other obligor upon the Debt Securities, or to the
creditors or property of the Company or such other obligor, the Trustee,
irrespective of whether the principal of the Debt Securities shall then be due
and payable as therein expressed or by acceleration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section 5.02, shall be entitled and empowered, by
intervention in such proceedings or otherwise, to file and prove a claim or claims
for the whole amount of principal and interest owing and unpaid in respect of
the Debt Securities and, in case of any judicial proceedings, to file such
proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for reasonable
compensation to the Trustee and each predecessor Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all other amounts due
to the Trustee under Section 6.06) and of the Securityholders allowed in such
judicial proceedings relative to the Company or any other obligor on the Debt
Securities, or to the creditors or property of the Company or such other
obligor, unless prohibited by applicable law and regulations, to vote on behalf
of the holders of the Debt Securities in any election of a trustee or a standby
trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings or Person performing similar functions in comparable
proceedings, and to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute the same after the deduction
of its charges and expenses; and any receiver, assignee or trustee in
bankruptcy or reorganization is hereby authorized by each of the
Securityholders 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
Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Trustee, each predecessor Trustee and their
respective agents, attorneys and counsel, and all other amounts due to the
Trustee under Section 6.06.

 

Nothing herein contained shall be construed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Debt Securities or the rights of any holder thereof
or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding.

 

27

 

All rights of action and of asserting claims under
this Indenture, or under any of the Debt Securities, may be enforced by the
Trustee without the possession of any of the Debt Securities, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or
proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall be for the
ratable benefit of the holders of the Debt Securities.

 

In any proceedings brought by the Trustee (and also
any proceedings involving the interpretation of any provision of this Indenture
to which the Trustee shall be a party), the Trustee shall be held to represent
all the holders of the Debt Securities, and it shall not be necessary to make
any holders of the Debt Securities parties to any such proceedings.

 

Section 5.03           Application
of Moneys Collected by Trustee.

 

Any moneys collected by
the Trustee shall be applied in the following order, at the date or dates fixed
by the Trustee for the distribution of such moneys, upon presentation of the
several Debt Securities in respect of which moneys have been collected, and
stamping thereon the payment, if only partially paid, and upon surrender
thereof if fully paid:

 

First: To the payment of
costs and expenses incurred by, and reasonable fees of, the Trustee, its
agents, attorneys and counsel, and of all other amounts due to the Trustee
under Section 6.06;

 

Second: To the payment of
all Senior Indebtedness of the Company if and to the extent required by Article
XV;

 

Third:  To the payment of the amounts then due and
unpaid upon Debt Securities, in respect of which or for the benefit of which
money has been collected, ratably, without preference or priority of any kind,
according to the amounts due upon such Debt Securities; and

 

Fourth: The balance, if
any, to the Company.

 

Section 5.04           Proceedings
by Securityholders.

 

No holder of any Debt Security shall have any right to
institute any suit, action or proceeding for any remedy hereunder, unless such
holder previously shall have given to the Trustee written notice of an Event of
Default with respect to the Debt Securities and unless the holders of not less
than 25% in aggregate principal amount of the Debt Securities then outstanding
shall have given the Trustee a written request to institute such action, suit
or proceeding and shall have offered to the Trustee such reasonable indemnity
as it may require against the costs, expenses and liabilities to be incurred
thereby, and the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity shall have failed to institute any such action, suit or
proceeding; provided, that no holder of Debt Securities shall have any
right to prejudice the rights of any other holder of Debt Securities, obtain
priority or preference over any other such holder or enforce any right under
this Indenture except in the manner herein provided and for the equal, ratable
and common benefit of all holders of Debt Securities.

 

28

 

Notwithstanding any other provisions in this
Indenture, the right of any holder of any Debt Security to receive payment of
the principal of and premium, if any, and interest on such Debt Security when
due, or to institute suit for the enforcement of any such payment, shall not be
impaired or affected without the consent of such holder.  For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

 

Section 5.05           Proceedings
by Trustee.

 

In case of an Event of
Default, the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant
or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

 

Section 5.06           Remedies
Cumulative and Continuing.

 

Except as otherwise
provided in Section 2.06, all powers and remedies given by this Article V to
the Trustee or to the Securityholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any other powers and remedies available
to the Trustee or the holders of the Debt Securities, by judicial proceedings
or otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to
the Debt Securities, and no delay or omission of the Trustee or of any holder
of any of the Debt Securities to exercise any right or power accruing upon any
Event of Default occurring and continuing as aforesaid shall impair any such
right or power, or shall be construed to be a waiver of any such default or an
acquiescence therein; and, subject to the provisions of Section 5.04, every
power and remedy given by this Article V or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

 

Section 5.07           Direction
of Proceedings and Waiver of Defaults by Majority of Securityholders.

 

The holders of a majority
in aggregate principal amount of the Debt Securities affected at the time
outstanding and, if the Debt Securities are held by the Trust or a trustee of
the Trust, the holders of a majority in aggregate liquidation amount of the outstanding
Capital Securities of the Trust 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 with respect to such
Debt Securities; provided, however, that if the Debt Securities
are held by the Trust or a trustee of the Trust, such time, method and place or
such exercise, as the case may be, may not be so directed until the holders of
a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have directed such time, method and place or such
exercise, as the case may be; provided, further, that (subject to
the provisions of Section 6.01) the Trustee shall have the right to decline to
follow any such direction if the Trustee shall determine that the action so
directed would be unjustly prejudicial to the holders

 

29

 

not taking part in such direction or if the Trustee
being advised by counsel determines that the action or proceeding so directed
may not lawfully be taken or if a Responsible Officer of the Trustee shall
determine that the action or proceedings so directed would involve the Trustee
in personal liability.  Prior to any
declaration of acceleration, or ipso  facto acceleration, of the
maturity of the Debt Securities, the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding may on behalf
of the holders of all of the Debt Securities waive (or modify any previously
granted waiver of) any past Default or Event of Default and its consequences,
except a default (a) in the payment of principal of or premium, if any, or
interest on any of the Debt Securities, (b) in respect of covenants or provisions
hereof which cannot be modified or amended without the consent of the holder of
each Debt Security affected, or (c)  in
respect of the covenants contained in Section 3.09; provided, however,
that if the Debt Securities are held by the Trust or a trustee of the Trust,
such waiver or modification to such waiver shall not be effective until the
holders of a majority in aggregate liquidation amount of the outstanding
Capital Securities of the Trust shall have consented to such waiver or
modification to such waiver; provided, further, that if the
consent of the holder of each outstanding Debt Security is required, such
waiver or modification to such waiver shall not be effective until each holder
of the outstanding Capital Securities of the Trust shall have consented to such
waiver or modification to such waiver. 
Upon any such waiver or modification to such waiver, the Default or
Event of Default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Debt
Securities shall be restored to their former positions and rights hereunder,
respectively; but no such waiver or modification to such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent
thereon.  Whenever any Default or Event
of Default hereunder shall have been waived as permitted by this Section, said
Default or Event of Default shall for all purposes of the Debt Securities and
this Indenture be deemed to have been cured and to be not continuing.

 

Section 5.08           Notice
of Defaults.

 

The Trustee shall, within
90 days after a Responsible Officer of the Trustee shall have actual knowledge
or received written notice of the occurrence of a default with respect to the
Debt Securities, mail to all Securityholders, as the names and addresses of
such holders appear upon the Debt Security Register, notice of all defaults
with respect to the Debt Securities known to the Trustee, unless such defaults
shall have been cured before the giving of such notice (the term “default” for
the purpose of this Section is hereby defined to be any event specified in
Section 5.01, not including periods of grace, if any, provided for therein); provided,
that, except in the case of default in the payment of the principal of
or premium, if any, or interest on any of the Debt Securities, the Trustee
shall be protected in withholding such notice if and so long as a Responsible
Officer of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Securityholders.

 

Section 5.09           Undertaking
to Pay Costs.

 

All parties to this Indenture agree, and each holder
of any Debt Security by such holder’s 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

 

30

 

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 shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Securityholder, or group of Securityholders, holding in the
aggregate more than 10% in principal amount of the outstanding Debt Securities
(or, if such Debt Securities are held by the Trust or a trustee of the Trust,
more than 10% in liquidation amount of the outstanding Capital Securities),to
any suit instituted by any Securityholder for the enforcement of the payment of
the principal of or premium, if any, or interest on any Debt Security against
the Company on or after the same shall have become due and payable or to any
suit instituted in accordance with Section 14.12.

 

ARTICLE VI

CONCERNING THE TRUSTEE

 

Section 6.01           Duties
and Responsibilities of Trustee.

 

With respect to the
holders of Debt Securities issued hereunder, the Trustee, prior to the
occurrence of an Event of Default with respect to the Debt Securities and after
the curing or waiving of all Events of Default which may have occurred, with
respect to the Debt Securities, undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture.  In case an Event of Default with respect to
the Debt Securities has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

No provision of this
Indenture shall be construed to relieve the Trustee from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct or bad faith, except that:

 

(a)           prior to the occurrence of an Event
of Default and after the curing or waiving of all Events of Default which may
have occurred:

 

(i)            the duties and obligations of the
Trustee with respect to the Debt Securities shall be determined solely by the
express provisions of this Indenture, and the Trustee shall not be liable
except for the performance of such duties and obligations with respect to the
Debt Securities 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 the
part of the Trustee, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but, in the case of any such certificates or
opinions which 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 conform on their face to the requirements of this
Indenture;

 

31

 

(b)           the Trustee shall not be liable for
any error of judgment made in good faith by a Responsible Officer or Officers
of the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

 

(c)           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 Securityholders pursuant to Section 5.07,
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture; and

 

(d)           the Trustee shall not be charged with
knowledge of any Default or Event of Default with respect to the Debt
Securities unless either (1) a Responsible Officer shall have actual knowledge
of such Default or Event of Default or (2) written notice of such Default or
Event of Default shall have been given to the Trustee by the Company or any
other obligor on the Debt Securities or by any holder of the Debt Securities,
except that the Trustee shall be deemed to have knowledge of any Event of
Default pursuant to Sections 5.01(a) or 5.01(b) hereof (other than an Event of
Default resulting from the default in the payment of Additional Amounts if the
Trustee does not have actual knowledge or written notice that such payment is
due and payable) .

 

None of the provisions
contained in this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur personal financial liability in the performance of any
of its duties or in the exercise of any of its rights or powers.

 

Section 6.02           Reliance
on Documents, Opinions, etc.

 

Except as otherwise
provided in Section 6.01:

 

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

 

(b)           any request, direction, order or
demand of the Company mentioned herein shall be sufficiently evidenced by an
Officers’ Certificate (unless other evidence in respect thereof be herein
specifically prescribed); and any Board Resolution may be evidenced to the
Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
of the Company;

 

(c)           the Trustee may consult with counsel
of its selection and any advice or 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 accordance with such advice or
Opinion of Counsel;

 

(d)           the Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request, order or direction of any of the Securityholders,
pursuant to the provisions of this Indenture, unless such Securityholders shall
have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby;

 

32

 

(e)           the Trustee shall not be liable for
any action taken or omitted by it in good faith and reasonably believed by it
to be authorized or within the discretion or rights or powers conferred upon it
by this Indenture; nothing contained herein shall, however, relieve the Trustee
of the obligation, upon the occurrence of an Event of Default with respect to
the Debt Securities (which has not been cured or waived) to exercise with
respect to the Debt Securities such of the rights and powers vested in it by
this Indenture, and to use the same degree of care and skill in their exercise,
as a prudent person would exercise or use under the circumstances in the conduct
of such person’s own affairs;

 

(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, consent,
order, approval, bond, debenture, coupon or other paper or document, unless
requested in writing to do so by the holders of a majority in aggregate
principal amount of the outstanding Debt Securities affected thereby; provided,
however, that if the payment within a reasonable time to the Trustee of
the costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security afforded to it by the terms of this Indenture, the
Trustee may require reasonable indemnity against such expense or liability as a
condition to so proceeding; and

 

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

 

Section 6.03           No
Responsibility for Recitals, etc.

 

The recitals contained
herein and in the Debt Securities (except in the certificate of authentication
of the Trustee or the Authenticating Agent) shall be taken as the statements of
the Company, and the Trustee and the Authenticating Agent assume no
responsibility for the correctness of the same.  The Trustee and the Authenticating Agent make no representations
as to the validity or sufficiency of this Indenture or of the Debt
Securities.  The Trustee and the
Authenticating Agent shall not be accountable for the use or application by the
Company of any Debt Securities or the proceeds of any Debt Securities
authenticated and delivered by the Trustee or the Authenticating Agent in
conformity with the provisions of this Indenture.

 

Section 6.04           Trustee,
Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debt
Securities.

 

The Trustee, any
Authenticating Agent, any Paying Agent, any transfer agent or any Debt Security
registrar, in its individual or any other capacity, may become the owner or
pledgee of Debt Securities with the same rights it would have if it were not
Trustee, Authenticating Agent, Paying Agent, transfer agent or Debt Security
registrar.

 

Section 6.05           Moneys
to be Held in Trust.

 

Subject to the provisions of Section 12.04, all moneys
received by the Trustee or any Paying Agent shall, until used or applied as
herein provided, be held in trust for the purpose for which they were received,
but need not be segregated from other funds except to the extent

 

33

 

required by law.  The Trustee and any Paying Agent shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed in writing with the Company. 
So long as no Event of Default shall have occurred and be continuing,
all interest allowed on any such moneys, if any, shall be paid from time to
time to the Company upon the written order of the Company, signed by the
Chairman of the Board of Directors, the President, the Chief Operating Officer,
a Vice President, the Treasurer or an Assistant Treasurer of the Company.

 

Section 6.06           Compensation
and Expenses of Trustee.

 

The Company covenants and
agrees to pay to the Trustee from time to time, and the Trustee shall be
entitled to, such compensation as shall be agreed to in writing between the
Company and the Trustee (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust), and the Company
will pay or reimburse the Trustee upon its written request for all documented
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Indenture (including the
reasonable compensation and the reasonable expenses and disbursements of its
counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance that arises from its negligence, willful
misconduct or bad faith.  The Company
also covenants to indemnify each of the Trustee (including in its individual
capacity) and any predecessor Trustee (and its officers, agents, directors and
employees) for, and to hold it harmless against, any and all loss, damage,
claim, liability or expense including taxes (other than taxes based on the
income of the Trustee), except to the extent such loss, damage, claim,
liability or expense results from the negligence, willful misconduct or bad
faith of such indemnitee, arising out of or in connection with the acceptance
or administration of this trust, including the costs and expenses of defending
itself against any claim or liability in the premises.  The obligations of the Company under this
Section to compensate and indemnify the Trustee and to pay or reimburse the
Trustee for documented expenses, disbursements and advances shall constitute
additional indebtedness hereunder.  Such
additional indebtedness shall be secured by a lien prior to that of the Debt
Securities upon all property and funds held or collected by the Trustee as
such, except funds held in trust for the benefit of the holders of particular
Debt Securities.

 

Without prejudice to any
other rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services in connection with an Event of Default
specified in clause (d), (e) or (f) of Section 5.01, the expenses (including
the reasonable charges and expenses of its counsel) and the compensation for
the services are intended to constitute expenses of administration under any
applicable federal or state bankruptcy, insolvency or other similar law.

 

The provisions of this
Section shall survive the resignation or removal of the Trustee and the
defeasance or other termination of this Indenture.

 

Notwithstanding anything in this Indenture or any Debt
Security to the contrary, the Trustee shall have no obligation whatsoever to
advance funds to pay any principal of or interest on or other amounts with
respect to the Debt Securities or otherwise advance funds to or on behalf of
the Company.

 

34

 

Section 6.07           Officers’
Certificate as Evidence.

 

Except as otherwise
provided in Sections 6.01 and 6.02, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable
that a matter be proved or established prior to taking or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence, willful misconduct
or bad faith on the part of the Trustee, be deemed to be conclusively proved
and established by an Officers’ Certificate delivered to the Trustee, and such
certificate, in the absence of negligence, willful misconduct or bad faith on
the part of the Trustee, shall be full warrant to the Trustee for any action taken
or omitted by it under the provisions of this Indenture upon the faith thereof.

 

Section 6.08           Eligibility
of Trustee.

 

The Trustee hereunder
shall at all times be a U.S. Person that is a banking corporation or national
association organized and doing business under the laws of the United States of
America or any state thereof or of the District of Columbia and authorized
under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least fifty million U.S. dollars ($50,000,000) and subject to
supervision or examination by federal, state, or District of Columbia
authority.  If such corporation or
national association publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such corporation or national association shall be deemed to be its
combined capital and surplus as set forth in its most recent records of condition
so published.

 

The Company may not, nor
may any Person directly or indirectly controlling, controlled by, or under
common control with the Company, serve as Trustee, notwithstanding that such
corporation or national association shall be otherwise eligible and qualified
under this Article.

 

In case at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 6.09.

 

If the Trustee has or
shall acquire any “conflicting interest” within the meaning of §310(b) of the
Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to, this
Indenture.

 

Section 6.09           Resignation
or Removal of Trustee.

 

(a)           The Trustee, or any trustee or
trustees hereafter appointed, may at any time resign by giving written notice
of such resignation to the Company and by mailing notice thereof, at the
Company’s expense, to the holders of the Debt Securities at their addresses as
they shall appear on the Debt Security Register.  Upon receiving such notice of resignation, the Company shall
promptly appoint a successor trustee or trustees by written instrument, in
duplicate, executed by order of its Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor Trustee.  If no successor
Trustee shall have been so appointed and have accepted appointment within 30
days after the mailing of

 

35

 

such notice of
resignation to the affected Securityholders, the resigning Trustee may petition
any court of competent jurisdiction for the appointment of a successor Trustee,
or any Securityholder who has been a bona fide holder of a Debt Security or
Debt Securities for at least six months may, subject to the provisions of
Section 5.09, on behalf of himself or herself and all others similarly
situated, petition any such court for the appointment of a successor
Trustee.  Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, appoint a
successor Trustee.

 

(b)           In case at any time any of the
following shall occur:

 

(i)            the Trustee shall fail to comply
with the provisions of the last paragraph of Section 6.08 after written request
therefor by the Company or by any Securityholder who has been a bona fide
holder of a Debt Security or Debt Securities for at least six months;

 

(ii)           the Trustee shall cease to be eligible
in accordance with the provisions of Section 6.08 and shall fail to resign
after written request therefor by the Company or by any such Securityholder; or

 

(iii)          the Trustee shall become incapable of
acting, or shall be adjudged bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,

 

then, in any such case,
the Company may remove the Trustee and appoint a successor Trustee by written
instrument, in duplicate, executed by order of the Board of Directors, one copy
of which instrument shall be delivered to the Trustee so removed and one copy
to the successor Trustee, or, subject to the provisions of Section 5.09, if no
successor Trustee shall have been so appointed and have accepted appointment
within 30 days of the occurrence of any of (i), (ii) or (iii) above, any
Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, on behalf of himself or herself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor Trustee.

 

(c)           Upon prior written notice to the
Company and the Trustee, the holders of a majority in aggregate principal
amount of the Debt Securities at the time outstanding may at any time remove
the Trustee and nominate a successor Trustee, which shall be deemed appointed
as successor Trustee unless within ten Business Days after such nomination the
Company objects thereto, in which case or in the case of a failure by such
holders to nominate a successor Trustee, the Trustee so removed or any
Securityholder, upon the terms and conditions and otherwise as in subsection
(a) of this Section, may petition any court of competent jurisdiction for an
appointment of a successor.

 

(d)           Any resignation or removal of the
Trustee and appointment of a successor Trustee pursuant to any of the
provisions of this Section shall become effective upon acceptance of
appointment by the successor Trustee as provided in Section 6.10.

 

36

 

Section 6.10           Acceptance
by Successor Trustee.

 

Any successor Trustee
appointed as provided in Section 6.09 shall execute, acknowledge and deliver to
the Company and to its predecessor Trustee an indenture supplemental hereto
which shall contain such provisions as shall be deemed necessary or desirable
to confirm that all of the rights, powers, trusts and duties of the retiring
Trustee shall be vested in the successor Trustee, 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, duties and obligations with respect to the Debt
Securities of its predecessor hereunder, with like effect as if originally
named as Trustee herein; but, nevertheless, on the written request of the
Company or of the successor Trustee, the Trustee ceasing to act shall, upon
payment of the amounts then due it pursuant to the provisions of Section 6.06,
execute and deliver an instrument transferring to such successor Trustee all
the rights and powers of the Trustee so ceasing to act and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.  Upon
request of any such successor Trustee, the Company shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming
to such successor Trustee all such rights and powers.  Any Trustee ceasing to act shall, nevertheless, retain a lien
upon all property or funds held or collected by such Trustee to secure any
amounts then due it pursuant to the provisions of Section 6.06.

 

No successor Trustee
shall accept appointment as provided in this Section unless at the time of such
acceptance such successor Trustee shall be eligible and qualified under the
provisions of Section 6.08.

 

In no event shall a
retiring Trustee be liable for the acts or omissions of any successor Trustee
hereunder.

 

Upon acceptance of
appointment by a successor Trustee as provided in this Section, the Company
shall mail notice of the succession of such Trustee hereunder to the holders of
Debt Securities at their addresses as they shall appear on the Debt Security
Register.  If the Company fails to mail
such notice within ten Business Days after the acceptance of appointment by the
successor Trustee, the successor Trustee shall cause such notice to be mailed
at the expense of the Company.

 

Section 6.11           Succession
by Merger, etc.

 

Any corporation into
which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
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 corporation shall be otherwise eligible and
qualified under this Article.

 

In case at the time such
successor to the Trustee shall succeed to the trusts created by this Indenture
any of the Debt Securities shall have been authenticated but not delivered, any

 

37

 

such successor to the Trustee may adopt the
certificate of authentication of any predecessor Trustee, and deliver such Debt
Securities so authenticated; and in case at that time any of the Debt
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Debt Securities either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Debt
Securities or in this Indenture provided that the certificate of the Trustee
shall have; provided, however, that the right to adopt the
certificate of authentication of any predecessor Trustee or authenticate Debt
Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.

 

Section 6.12           Authenticating
Agents.

 

There may be one or more
Authenticating Agents appointed by the Trustee upon the request of the Company
with power to act on its behalf and subject to its direction in the
authentication and delivery of Debt Securities issued upon exchange or
registration of transfer thereof as fully to all intents and purposes as though
any such Authenticating Agent had been expressly authorized to authenticate and
deliver Debt Securities; provided, however, that the Trustee
shall have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of Debt
Securities.  Any such Authenticating
Agent shall at all times be a corporation organized and doing business under
the laws of the United States or of any state thereof or of the District of
Columbia authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of at least $50,000,000 and being subject to
supervision or examination by federal, state or District of Columbia
authority.  If such corporation
publishes reports of condition at least annually pursuant to law or the
requirements of such authority, then for the purposes of this Section 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
an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect herein specified in this Section.

 

Any corporation into
which any Authenticating Agent may be merged or converted or with which it may
be consolidated, or any corporation resulting from any merger, consolidation or
conversion to which any Authenticating Agent shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of any Authenticating Agent, shall be the successor of such
Authenticating Agent hereunder, if such successor corporation is otherwise
eligible under this Section without the execution or filing of any paper or any
further act on the part of the parties hereto or such Authenticating Agent.

 

Any Authenticating Agent
may at any time resign by giving written notice of resignation to the Trustee
and to the Company.  The Trustee may at
any time terminate the agency of any Authenticating Agent with respect to the
Debt Securities by giving written notice of termination 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 any Authenticating Agent shall cease to be eligible under this
Section, the Trustee may, and upon the request of the Company shall, promptly
appoint a successor Authenticating Agent eligible under this Section, shall
give written notice of such appointment to the Company and shall mail notice of
such appointment to all holders of Debt Securities as the names and addresses
of such holders appear on the Debt

 

38

 

Security Register.  Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all rights, powers, duties and responsibilities of its
predecessor hereunder, with like effect as if originally named as
Authenticating Agent herein.

 

The Company agrees to pay
to any Authenticating Agent from time to time reasonable compensation for its
services.  Any Authenticating Agent
shall have no responsibility or liability for any action taken by it as such in
accordance with the directions of the Trustee.

 

ARTICLE
VII

CONCERNING THE SECURITYHOLDERS

 

Section 7.01           Action
by Securityholders.

 

Whenever in this
Indenture it is provided that the holders of a specified percentage in
aggregate principal amount of the Debt Securities or aggregate liquidation
amount of the Capital Securities may take any action (including the making of
any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such
action the holders of such specified percentage have joined therein may be
evidenced (a) by any instrument or any number of instruments of similar tenor
executed by such Securityholders or holders of Capital Securities, as the case
may be, in person or by agent or proxy appointed in writing, or (b) by the
record of such holders of Debt Securities voting in favor thereof at any
meeting of such Securityholders duly called and held in accordance with the
provisions of Article VIII or of such holders of Capital Securities duly called
and held in accordance with the provisions of the Declaration, or (c) by a
combination of such instrument or instruments and any such record of such a
meeting of such Securityholders or holders of Capital Securities, as the case
may be, or (d) by any other method the Trustee deems satisfactory.

 

If the Company shall
solicit from the Securityholders any request, demand, authorization, direction,
notice, consent, waiver or other action or revocation of the same, the Company
may, at its option, as evidenced by an Officers’ Certificate, fix in advance a
record date for such Debt Securities for the determination of Securityholders
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other action or revocation of the same, but the Company
shall have no obligation to do so.  If
such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other action or revocation of the same may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of outstanding Debt Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other action or
revocation of the same, and for that purpose the outstanding Debt Securities
shall be computed as of the record date; provided, however, that
no such authorization, agreement or consent by such Securityholders on the
record date shall be deemed effective unless it shall become effective pursuant
to the provisions of this Indenture not later than six months after the record
date.

 

39

 

Section 7.02           Proof
of Execution by Securityholders.

 

Subject to the provisions
of Sections 6.01, 6.02 and 8.05, proof of the execution of any instrument by a
Securityholder or such Securityholder’s agent or proxy shall be sufficient if
made in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee.  The ownership of Debt
Securities shall be proved by the Debt Security Register or by a certificate of
the Debt Security registrar.  The
Trustee may require such additional proof of any matter referred to in this
Section as it shall deem necessary.

 

The record of any
Securityholders’ meeting shall be proved in the manner provided in Section
8.06.

 

Section 7.03           Who
Are Deemed Absolute Owners.

 

Prior to due presentment
for registration of transfer of any Debt Security, the Company, the Trustee,
any Authenticating Agent, any Paying Agent, any transfer agent and any Debt
Security registrar may deem the Person in whose name such Debt Security shall
be registered upon the Debt Security Register to be, and may treat such Person
as, the absolute owner of such Debt Security (whether or not such Debt Security
shall be overdue) for the purpose of receiving payment of or on account of the
principal of and premium, if any, and interest on such Debt Security and for
all other purposes; and none of the Company, the Trustee, any Authenticating
Agent, any Paying Agent, any transfer agent or any Debt Security registrar
shall be affected by any notice to the contrary.  All such payments so made to any holder for the time being or
upon such holder’s order shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for moneys payable upon
any such Debt Security.

 

Section 7.04           Debt
Securities Owned by Company Deemed Not Outstanding.

 

In determining whether
the holders of the requisite aggregate principal amount of Debt Securities have
concurred in any direction, consent or waiver under this Indenture, Debt
Securities which are owned by the Company or any other obligor on the Debt
Securities or by any Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company (other than the
Trust) or any other obligor on the Debt Securities shall be disregarded and
deemed not to be outstanding for the purpose of any such determination, provided,
that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, consent or waiver, only Debt Securities which a
Responsible Officer of the Trustee actually knows are so owned shall be so
disregarded.  Debt Securities so owned
which have been pledged in good faith may be regarded as outstanding for the
purposes of this Section if the pledgee shall establish to the satisfaction of
the Trustee the pledgee’s right to vote such Debt Securities and that the
pledgee is not the Company or any such other obligor or Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any such other obligor.  In the case of a dispute as to such right, any decision by the
Trustee taken upon the advice of counsel shall be full protection to the
Trustee.

 

40

 

Section 7.05           Revocation
of Consents; Future Holders Bound.

 

At any time prior to (but
not after) the evidencing to the Trustee, as provided in Section 7.01, of the
taking of any action by the holders of the percentage in aggregate principal
amount of the Debt Securities specified in this Indenture in connection with
such action, any holder (in cases where no record date has been set pursuant to
Section 7.01) or any holder as of an applicable record date (in cases where a
record date has been set pursuant to Section 7.01) of a Debt Security (or any
Debt Security issued in whole or in part in exchange or substitution therefor)
the serial number of which is shown by the evidence to be included in the Debt
Securities the holders of which have consented to such action may, by filing
written notice with the Trustee at the Principal Office of the Trustee and upon
proof of holding as provided in Section 7.02, revoke such action so far as
concerns such Debt Security (or so far as concerns the principal amount
represented by any exchanged or substituted Debt Security).  Except as aforesaid any such action taken by
the holder of any Debt Security shall be conclusive and binding upon such
holder and upon all future holders and owners of such Debt Security, and of any
Debt Security issued in exchange or substitution therefor or on registration of
transfer thereof, irrespective of whether or not any notation in regard thereto
is made upon such Debt Security or any Debt Security issued in exchange or
substitution therefor.

 

ARTICLE
VIII

SECURITYHOLDERS’ MEETINGS

 

Section 8.01           Purposes
of Meetings.

 

A meeting of
Securityholders may be called at any time and from time to time pursuant to the
provisions of this Article VIII for any of the following purposes:

 

(a)           to give any notice to the Company or
to the Trustee, or to give any directions to the Trustee, or to consent to the
waiving of any default hereunder and its consequences, or to take any other
action authorized to be taken by Securityholders pursuant to any of the
provisions of Article V;

 

(b)           to remove the Trustee and nominate a
successor trustee pursuant to the provisions of Article VI;

 

(c)           to consent to the execution of an
indenture or indentures supplemental hereto pursuant to the provisions of
Section 9.02; or

 

(d)           to take any other action authorized
to be taken by or on behalf of the holders of any specified aggregate principal
amount of such Debt Securities under any other provision of this Indenture or
under applicable law.

 

Section 8.02           Call
of Meetings by Trustee.

 

The Trustee may at any
time call a meeting of Securityholders to take any action specified in Section
8.01, to be held at such time and at such place in The City of New York, the
Borough of Manhattan, or Wilmington, Delaware, as the Trustee shall
determine.  Notice of every meeting of
the Securityholders, setting forth the time and the place of such meeting and
in

 

41

 

general terms the action proposed to be taken at such meeting, shall be
mailed to holders of Debt Securities affected at their addresses as they shall
appear on the Debt Securities Register. 
Such notice shall be mailed not less than 20 nor more than 180 days
prior to the date fixed for the meeting.

 

Section 8.03           Call
of Meetings by Company or Securityholders.

 

In case at any time the
Company pursuant to a Board Resolution, or the holders of at least 10% in
aggregate principal amount of the Debt Securities, as the case may be, then
outstanding, shall have requested the Trustee to call a meeting of
Securityholders, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within 20 days after receipt of such request,
then the Company or such Securityholders may determine the time and the place
in Costa Mesa, California for such
meeting and may call such meeting to take any action authorized in Section
8.01, by mailing notice thereof as provided in Section 8.02.

 

Section 8.04           Qualifications
for Voting.

 

To be entitled to vote at
any meeting of Securityholders, a Person shall be (a) a holder of one or more
Debt Securities or (b) a Person appointed by an instrument in writing as proxy
by a holder of one or more Debt Securities. 
The only Persons who shall be entitled to be present or to speak at any
meeting of Securityholders shall be the Persons entitled to vote at such
meeting and their counsel and any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel.

 

Section 8.05           Regulations.

 

Notwithstanding any other
provisions of this Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of Securityholders, in regard to proof
of the holding of Debt Securities and of the appointment of proxies, and in
regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate.

 

The Trustee shall, by an
instrument in writing, appoint a temporary chairman of the meeting, unless the
meeting shall have been called by the Company or by Securityholders as provided
in Section 8.03, in which case the Company or the Securityholders calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by majority vote at the meeting.

 

Subject to the provisions
of Section 7.04, at any meeting each holder of Debt Securities with respect to
which such meeting is being held or proxy therefor shall be entitled to one
vote for each $1,000 principal amount of Debt Securities held or represented by
such holder; provided, however, that no vote shall be cast or
counted at any meeting in respect of any Debt Security challenged as not
outstanding and ruled by the chairman of the meeting to be not
outstanding.  The chairman of the meeting
shall have no right to vote other than by virtue of Debt Securities held by
such chairman or instruments in writing as aforesaid duly designating such
chairman as the Person to vote on behalf of other Securityholders.  Any meeting of

 

42

 

Securityholders duly called pursuant to the provisions of Section 8.02
or 8.03 may be adjourned from time to time by a majority of those present,
whether or not constituting a quorum, and the meeting may be held as so adjourned
without further notice.

 

Section 8.06           Voting.

 

The vote upon any
resolution submitted to any meeting of holders of Debt Securities with respect
to which such meeting is being held shall be by written ballots on which shall
be subscribed the signatures of such holders or of their representatives by
proxy and the serial number or numbers of the Debt Securities held or
represented by them.  The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of Securityholders shall be prepared by the
secretary of the meeting and there shall be attached to said record the
original reports of the inspectors of votes on any vote by ballot taken thereat
and affidavits by one or more Persons having knowledge of the facts setting forth
a copy of the notice of the meeting and showing that said notice was mailed as
provided in Section 8.02.  The record
shall show the serial numbers of the Debt Securities voting in favor of or
against any resolution. The record shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one of
the duplicates shall be delivered to the Company and the other to the Trustee
to be preserved by the Trustee, the latter to have attached thereto the ballots
voted at the meeting.

 

Any record so signed and
verified shall be conclusive evidence of the matters therein stated.

 

Section 8.07           Quorum;
Actions.

 

The Persons entitled to
vote a majority in aggregate principal amount of the Debt Securities then
outstanding shall constitute a quorum for a meeting of Securityholders; provided,
however, that if any action is to be taken at such meeting with respect
to a consent, waiver, request, demand, notice, authorization, direction or
other action which may be given by the holders of not less than a specified
percentage in aggregate principal amount of the Debt Securities then
outstanding, the Persons holding or representing such specified percentage in
aggregate principal amount of the Debt Securities then outstanding will
constitute a quorum.  In the absence of
a quorum within 30 minutes of the time appointed for any such meeting, the
meeting shall, if convened at the request of Securityholders, be
dissolved.  In any other case, the
meeting may be adjourned for a period of not less than 10 days as determined by
the permanent chairman of the meeting prior to the adjournment of such
meeting.  In the absence of a quorum at
any such adjourned meeting, such adjourned meeting may be further adjourned for
a period of not less than 10 days as determined by the permanent chairman of
the meeting prior to the adjournment of such adjourned meeting.  Notice of the reconvening of any adjourned
meeting shall be given as provided in Section 8.02, except that such notice
need be given only once not less than five days prior to the date on which the
meeting is scheduled to be reconvened. 
Notice of the reconvening of an adjourned meeting shall state expressly
the percentage, as provided above, of the aggregate principal amount of the
Debt Securities then outstanding which shall constitute a quorum.

 

43

 

Except as limited by the
proviso in the first paragraph of Section 9.02, any resolution presented to a
meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted by the affirmative vote of the holders of a majority
in aggregate principal amount of the Debt Securities then outstanding; provided,
however, that, except as limited by the proviso in the first paragraph
of Section 9.02, any resolution with respect to any consent, waiver, request,
demand, notice, authorization, direction or other action that this Indenture
expressly provides may be given by the holders of not less than a specified
percentage in outstanding principal amount of the Debt Securities may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid only by the affirmative vote of the holders of
not less than such specified percentage in aggregate principal amount of the
Debt Securities then outstanding.

 

Any resolution passed or
decision taken at any meeting of holders of Debt Securities duly held in
accordance with this Section shall be binding on all the Securityholders,
whether or not present or represented at the meeting.

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

Section 9.01           Supplemental
Indentures without Consent of Securityholders.

 

The Company, when
authorized by a Board Resolution, and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto, without the
consent of the Securityholders, for one or more of the following purposes:

 

(a)           to evidence the succession of another
corporation to the Company, or successive successions, and the assumption by
the successor corporation of the covenants, agreements and obligations of the
Company, pursuant to Article XI hereof;

 

(b)           to add to the covenants of the
Company such further covenants, restrictions or conditions for the protection
of the holders of Debt Securities as the Board of Directors shall consider to
be for the protection of the holders of such Debt Securities, and to make the
occurrence, or the occurrence and continuance, of a Default in any of such
additional covenants, restrictions or conditions a Default or an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided, however,
that in respect of any such additional covenant, restriction or condition such
supplemental indenture may provide for a particular period of grace after
Default (which period may be shorter or longer than that allowed in the case of
other Defaults) or may provide for an immediate enforcement upon such Default
or may limit the remedies available to the Trustee upon such default;

 

(c)           to cure any ambiguity or to correct
or supplement any provision contained herein or in any supplemental indenture
which may be defective or inconsistent with any other provision contained
herein or in any supplemental indenture, or to make such other provisions in
regard to matters or questions arising under this Indenture, provided,
that any such action shall not adversely affect the interests of the holders of
the Debt Securities then outstanding;

 

44

 

(d)           to add to, delete from, or revise the
terms of Debt Securities, including, without limitation, any terms relating to
the issuance, exchange, registration or transfer of Debt Securities, including
to provide for transfer procedures and restrictions substantially similar to
those applicable to the Capital Securities, as required by Section 2.05 (for
purposes of assuring that no registration of Debt Securities is required under
the Securities Act), provided, that any such action shall not adversely
affect the interests of the holders of the Debt Securities then outstanding (it
being understood, for purposes of this proviso, that transfer restrictions on
Debt Securities substantially similar to those applicable to Capital Securities
shall not be deemed to adversely affect the holders of the Debt Securities);

 

(e)           to evidence and provide for the
acceptance of appointment hereunder by a successor Trustee with respect to the
Debt Securities and to add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee, pursuant to the requirements of
Section 6.10;

 

(f)            to make any change (other than as
elsewhere provided in this Section) that does not adversely affect the rights
of any Securityholder in any material respect; or

 

(g)           to provide for the issuance of and
establish the form and terms and conditions of the Debt Securities, to
establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or the Debt Securities, or to add to the rights of
the holders of Debt Securities.

 

The Trustee is hereby
authorized to join with the Company in the execution of any such supplemental
indenture, to make any further appropriate agreements and stipulations which
may be therein contained and to accept the conveyance, transfer and assignment
of any property thereunder, but the Trustee shall not be obligated to, but may
in its discretion, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental
indenture authorized by the provisions of this Section may be executed by the
Company and the Trustee without the consent of the holders of any of the Debt
Securities at the time outstanding, notwithstanding any of the provisions of
Section 9.02.

 

Section 9.02           Supplemental
Indentures with Consent of Securityholders.

 

With the consent
(evidenced as provided in Section 7.01) of the holders of a majority in
aggregate principal amount of the Debt Securities at the time outstanding
affected by such supplemental indenture, the Company, when authorized by a
Board Resolution, and the Trustee may from time to time and at any time enter
into an indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act, then in effect, applicable to indentures
qualified thereunder) for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the holders
of the Debt Securities; provided, however, that no such
supplemental indenture shall, without the consent of the holders of each Debt
Security then outstanding and affected thereby, (i) change the Maturity Date of
any Debt Security, or reduce the principal amount thereof or any premium
thereon, or

 

45

 

reduce the rate (or manner of calculation of the rate)
or extend the time of payment of interest thereon, or reduce (other than as a
result of the maturity or earlier redemption of any such Debt Security in
accordance with the terms of this Indenture and such Debt Security) or increase
the aggregate principal amount of Debt Securities then outstanding, or change
any of the redemption provisions, or make the principal thereof or any interest
or premium thereon payable in any coin or currency other than United States
Dollars, or impair or affect the right of any Securityholder to institute suit
for payment thereof, or (ii) reduce the aforesaid percentage of Debt Securities
the holders of which are required to consent to any such supplemental
indenture; and provided, further, that if the Debt Securities are
held by the Trust or the trustee of the Trust, such supplemental indenture
shall not be effective until the holders of a majority in aggregate liquidation
amount of the outstanding Capital Securities shall have consented to such
supplemental indenture; provided, further, that if the consent of
the Securityholder of each outstanding Debt Security is required, such
supplemental indenture shall not be effective until each holder of the
outstanding Capital Securities shall have consented to such supplemental
indenture.

 

Upon the request of the
Company accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Securityholders (and holders of Capital Securities, if required) as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

 

Promptly after the
execution by the Company and the Trustee of any supplemental indenture pursuant
to the provisions of this Section, the Trustee shall transmit by mail, first
class postage prepaid, a notice, prepared by the Company, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders as their names and addresses appear upon the Debt Security
Register.  Any failure of the Trustee to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.

 

It shall not be necessary
for the consent of the Securityholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof.

 

Section 9.03           Effect
of Supplemental Indentures.

 

Upon the execution of any
supplemental indenture pursuant to the provisions of this Article IX, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the holders
of Debt Securities shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

 

46

 

Section 9.04           Notation
on Debt Securities.

 

Debt Securities
authenticated and delivered after the execution of any supplemental indenture
pursuant to the provisions of this Article IX may bear a notation as to any
matter provided for in such supplemental indenture.  If the Company or the Trustee shall so determine, new Debt
Securities so modified as to conform, in the opinion of the Board of Directors
of the Company, to any modification of this Indenture contained in any such
supplemental indenture may be prepared and executed by the Company,
authenticated by the Trustee or the Authenticating Agent and delivered in
exchange for the Debt Securities then outstanding.

 

Section 9.05           Evidence
of Compliance of Supplemental Indenture to be Furnished to Trustee.

 

The Trustee, subject to
the provisions of Sections 6.01 and 6.02, shall, in addition to the documents
required by Section 14.06, receive an Officers’ Certificate as conclusive
evidence that any supplemental indenture executed pursuant hereto complies with
the requirements of this Article IX. 
The Trustee shall also receive an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article IX
is authorized or permitted by, and conforms to, the terms of this Article IX
and that it is proper for the Trustee under the provisions of this Article IX to
join in the execution thereof.

 

ARTICLE X

REDEMPTION OF SECURITIES

 

Section 10.01         Optional
Redemption.

 

The Company shall have
the right, subject to the receipt by the Company of the prior approval from the
OTS, if then required under applicable capital guidelines or policies of the
OTS, to redeem the Debt Securities, in whole or (provided that all accrued and
unpaid interest has been paid on all Debt Securities for all Interest Periods
terminating on or prior to such date) from time to time in part, on any
Interest Payment Date on or after April 7, 2009 (each, an “Optional Redemption
Date”), at the Optional Redemption Price.

 

Section 10.02         Special
Event Redemption.

 

If a Special Event shall
occur and be continuing, the Company shall have the right, subject to the
receipt by the Company of prior approval from the OTS, if then required under
applicable capital guidelines or policies of the OTS, to redeem the Debt
Securities, in whole but not in part, at any time within 90 days following the
occurrence of such Special Event (the “Special Redemption Date”), at the
Special Redemption Price.  In the event
that the Special Redemption Date falls on a day prior to the LIBOR
Determination Date for any Interest Period, then the Company shall be required
to pay to Securityholders, on the Business Day following such LIBOR
Determination Date, any additional amount of interest that would have been
payable on the Special Redemption Date had the amount of interest determined on
such LIBOR Determination Date been known on the first day of such Interest
Period.

 

47

 

Section 10.03         Notice
of Redemption; Selection of Debt Securities.

 

In case the Company shall
desire to exercise the right to redeem all, or, as the case may be, any part of
the Debt Securities, it shall fix a date for redemption and shall mail, or
cause the Trustee to mail (at the expense of the Company), a notice of such
redemption at least 30 and not more than 60 days prior to the date fixed for
redemption to the holders of Debt Securities so to be redeemed as a whole or in
part at their last addresses as the same appear on the Debt Security
Register.  Such mailing shall be by
first class mail.  The notice if mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice.  In any case, failure to give such notice by
mail or any defect in the notice to the holder of any Debt Security designated
for redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Debt Security.

 

Each such notice of
redemption shall specify the CUSIP number, if any, of the Debt Securities to be
redeemed, the date fixed for redemption, the price (or manner of calculation of
the price) at which Debt Securities are to be redeemed, the place or places of
payment, that payment will be made upon presentation and surrender of such Debt
Securities, that interest accrued to the date fixed for redemption will be paid
as specified in said notice, and that on and after said date interest thereon
or on the portions thereof to be redeemed will cease to accrue. If less than
all the Debt Securities are to be redeemed, the notice of redemption shall
specify the numbers of the Debt Securities to be redeemed.  In case the Debt Securities are to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Debt Security, a new Debt
Security or Debt Securities in principal amount equal to the unredeemed portion
thereof will be issued.

 

Prior to 10:00 a.m., New
York City time, on the Optional Redemption Date or the Special Redemption Date
specified in the notice of redemption given as provided in this Section, the
Company will deposit with the Trustee or with one or more Paying Agents an
amount of money sufficient to redeem on such date all the Debt Securities so
called for redemption at the applicable price therefor, together with unpaid
interest accrued to such date.

 

The Company will give the
Trustee notice not less than 45 nor more than 75 days prior to the date fixed
for redemption as to the price at which the Debt Securities are to be redeemed
and the aggregate principal amount of Debt Securities to be redeemed and the
Trustee shall select, in such manner as in its sole discretion it shall deem
appropriate and fair, the Debt Securities or portions thereof (in integral
multiples of $1,000) to be redeemed.

 

Section 10.04         Payment
of Debt Securities Called for Redemption.

 

If notice of redemption has been given as provided in
Section 10.03, the Debt Securities or portions of Debt Securities with respect
to which such notice has been given shall become due and payable on the related
Optional Redemption Date or Special Redemption Date (as the case may be) and at
the place or places stated in such notice at the applicable price therefor,
together with unpaid interest accrued thereon to said Optional Redemption Date
or the Special Redemption Date (as the case may be), and on and after said
Optional Redemption Date or the Special Redemption Date (as the case may be)
(unless the Company shall default in the

 

48

 

payment of such Debt Securities at the redemption price, together with
unpaid interest accrued thereon to said date) interest on the Debt Securities
or portions of Debt Securities so called for redemption shall cease to accrue.  On presentation and surrender of such Debt
Securities at a place of payment specified in said notice, such Debt Securities
or the specified portions thereof shall be paid and redeemed by the Company at
the applicable price therefor, together with unpaid interest, if any, accrued
thereon to said Optional Redemption Date or the Special Redemption Date (as the
case may be); provided, however, that interest payable on any Interest Payment
Date on or prior to said Optional Redemption Date or the Special Redemption
Date will be paid to the holders on the relevant regular record date.

 

Upon presentation of any
Debt Security redeemed in part only, the Company shall execute and the Trustee
shall authenticate and make available for delivery to the holder thereof, at
the expense of the Company, a new Debt Security or Debt Securities of
authorized denominations in principal amount equal to the unredeemed portion of
the Debt Security so presented.

 

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

 

Section 11.01         Company
May Consolidate, etc., on Certain Terms.

 

Nothing contained in this
Indenture or in the Debt Securities shall prevent any consolidation or merger
of the Company with or into any other corporation or corporations (whether or
not affiliated with the Company) or successive consolidations or mergers in
which the Company or its successor or successors shall be a party or parties,
or shall prevent any sale, conveyance, transfer or other disposition of all or
substantially all of the property or capital stock of the Company or its
successor or successors to any other corporation (whether or not affiliated
with the Company or its successor or successors) authorized to acquire and
operate the same; provided, however, that the Company hereby
covenants and agrees that (i) upon any such consolidation, merger (where
the Company is not the surviving corporation), sale, conveyance, transfer or
other disposition, the successor entity shall be a corporation organized and
existing under the laws of the United States or any state thereof or the
District of Columbia (unless such corporation has (1) agreed to make all
payments due in respect of the Debt Securities or, if outstanding, the Trust
Securities and the Capital Securities Guarantee without withholding or
deduction for, or on account of, any taxes, duties, assessments or other
governmental charges under the laws or regulations of the jurisdiction of
organization or residence (for tax purposes) of such corporation or any
political subdivision or taxing authority thereof or therein unless required by
applicable law, in which case such corporation shall have agreed to pay such
additional amounts as shall be required so that the net amounts received and
retained by the holders of such Debt Securities or Trust Securities, as the
case may be, after payment of all taxes (including withholding taxes), duties,
assessments or other governmental charges, will be equal to the amounts that
such holders would have received and retained had no such taxes (including
withholding taxes), duties, assessments or other governmental charges been
imposed, (2) irrevocably and unconditionally consented and submitted to the
jurisdiction of any United States federal court or New York state court, in
each case located in the Borough of Manhattan, The City of New York, in respect
of any action, suit or proceeding against it arising out of or in connection
with this Indenture, the Debt Securities, the Capital Securities Guarantee or
the

 

49

 

Declaration and irrevocably and unconditionally waived, to the fullest
extent permitted by law, any objection to the laying of venue in any such court
or that any such action, suit or proceeding has been brought in an inconvenient
forum and (3) irrevocably appointed an agent in The City of New York for
service of process in any action, suit or proceeding referred to in clause (2)
above) and such corporation expressly assumes all of the obligations of the
Company under the Debt Securities, this Indenture, the Capital Securities Guarantee
and the Declaration and (ii) after giving effect to any such
consolidation, merger, sale, conveyance, transfer or other disposition, no
Default or Event of Default shall have occurred and be continuing.

 

Section 11.02         Successor
Entity to be Substituted.

 

In case of any such
consolidation, merger, sale, conveyance, transfer or other disposition
contemplated in Section 11.01 and upon the assumption by the successor
corporation, by supplemental indenture, executed and delivered to the Trustee
and reasonably satisfactory in form to the Trustee, of the due and punctual
payment of the principal of and premium, if any, and interest on all of the
Debt Securities and the due and punctual performance and observance of all of
the covenants and conditions of this Indenture to be performed or observed by
the Company, such successor corporation shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein as the
Company, and thereupon the predecessor entity shall be relieved of any further
liability or obligation hereunder or upon the Debt Securities.  Such successor corporation thereupon may
cause to be signed, and may issue either in its own name or in the name of the
Company, any or all of the Debt Securities issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee or the
Authenticating Agent; and, upon the order of such successor corporation instead
of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee or the Authenticating Agent shall
authenticate and deliver any Debt Securities which previously shall have been
signed and delivered by the officers of the Company to the Trustee or the
Authenticating Agent for authentication, and any Debt Securities which such
successor corporation thereafter shall cause to be signed and delivered to the
Trustee or the Authenticating Agent for that purpose.  All the Debt Securities so issued shall in all respects have the
same legal rank and benefit under this Indenture as the Debt Securities
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Debt Securities had been issued at the date of the
execution hereof.

 

Section 11.03         Opinion
of Counsel to be Given to Trustee.

 

The Trustee, subject to the provisions of Sections
6.01 and 6.02, shall receive, in addition to the Opinion of Counsel required by
Section 9.05, an Opinion of Counsel as conclusive evidence that any
consolidation, merger, sale, conveyance, transfer or other disposition, and any
assumption, permitted or required by the terms of this Article XI complies with
the provisions of this Article XI.

 

50

 

ARTICLE
XII

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 12.01         Discharge
of Indenture.

 

When (a) the Company shall deliver to the Trustee for
cancellation all Debt Securities theretofore authenticated (other than any Debt
Securities which shall have been destroyed, lost or stolen and which shall have
been replaced or paid as provided in Section 2.06) and not theretofore
canceled, or (b) all the Debt Securities not theretofore canceled or delivered
to the Trustee for cancellation shall have become due and payable, or are by
their terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption, and the Company shall deposit with the Trustee,
in trust, funds, which shall be immediately due and payable, sufficient to pay
at maturity or upon redemption all of the Debt Securities (other than any Debt
Securities which shall have been destroyed, lost or stolen and which shall have
been replaced or paid as provided in Section 2.06) not theretofore canceled or
delivered to the Trustee for cancellation, including principal and premium, if
any, and interest due or to become due to the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, as the case may be, but
excluding, however, the amount of any moneys for the payment of principal of
and premium, if any, or interest on the Debt Securities (1) theretofore repaid
to the Company in accordance with the provisions of Section 12.04, or (2) paid
to any state or to the District of Columbia pursuant to its unclaimed property
or similar laws, and if in the case of either clause (a) or (b) above the
Company shall also pay or cause to be paid all other sums payable hereunder by
the Company, then this Indenture shall cease to be of further effect except for
the provisions of Sections 2.05, 2.06, 3.01, 3.02, 3.04, 6.06, 6.09 and 12.04
hereof, which shall survive until such Debt Securities shall mature or are
redeemed, as the case may be, and are paid in full.  Thereafter, Sections 6.06, 6.09 and 12.04 shall survive, and the
Trustee, on demand of the Company accompanied by 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, and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this
Indenture, the Company, however, hereby agreeing to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred by the
Trustee in connection with this Indenture or the Debt Securities.

 

Section 12.02         Deposited
Moneys to be Held in Trust by Trustee.

 

Subject to the provisions of Section 12.04, all moneys
deposited with the Trustee pursuant to Section 12.01 shall be held in trust and
applied by it to the payment, either directly or through any Paying Agent
(including the Company if acting as its own Paying Agent), to the holders of
the particular Debt Securities for the payment of which such moneys have been
deposited with the Trustee, of all sums due and to become due thereon for
principal, premium, if any, and interest.

 

51

 

Section 12.03         Paying
Agent to Repay Moneys Held.

 

Upon the satisfaction and discharge of this Indenture,
all moneys then held by any Paying Agent of the Debt Securities (other than the
Trustee) shall, upon demand of the Company, be repaid to the Company or paid to
the Trustee, and thereupon such Paying Agent shall be released from all further
liability with respect to such moneys.

 

Section 12.04         Return
of Unclaimed Moneys.

 

Any moneys deposited with
or paid to the Trustee or any Paying Agent for payment of the principal of and
premium, if any, or interest on Debt Securities and not applied but remaining
unclaimed by the holders of Debt Securities for two years after the date upon
which the principal of and premium, if any, or interest on such Debt Securities,
as the case may be, shall have become due and payable, shall be repaid to the
Company by the Trustee or such Paying Agent on written demand; and the holder
of any of the Debt Securities shall thereafter look only to the Company for any
payment which such holder may be entitled to collect and all liability of the
Trustee or such Paying Agent with respect to such moneys shall thereupon cease.

 

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

 

Section 13.01         Indenture
and Debt Securities Solely Corporate Obligations.

 

No recourse for the
payment of the principal of or premium, if any, or interest on any Debt
Security, or for any claim based thereon or otherwise in respect thereof, and
no recourse under or upon any obligation, covenant or agreement of the Company
in this Indenture or in any supplemental indenture, or in any such Debt
Security, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, officer, director, employee
or agent, as such, past, present or future, of the Company or of any
predecessor or successor corporation of the Company, either directly or through
the Company or any successor corporation of the Company, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the Debt
Securities.

 

ARTICLE XIV

MISCELLANEOUS PROVISIONS

 

Section 14.01         Successors.

 

All the covenants,
stipulations, promises and agreements of the Company contained in this
Indenture shall bind its successors and assigns, whether so expressed or not.

 

Section 14.02         Official
Acts by Successor Entity.

 

Any act or proceeding by any provision of this
Indenture authorized or required to be done or performed by any board,
committee or officer of the Company shall and may be done

 

52

 

and performed with like
force and effect by the like board, committee, officer or other authorized
Person of any entity that shall at the time be the lawful successor of the
Company.

 

Section 14.03         Surrender
of Company Powers.

 

The Company, by
instrument in writing executed by authority of 2/3 (two thirds) of its Board of
Directors and delivered to the Trustee, may surrender any of the powers
reserved to the Company and thereupon such power so surrendered shall terminate
both as to the Company and as to any permitted successor.

 

Section 14.04         Addresses
for Notices, etc.

 

Any notice or demand
which by any provision of this Indenture is required or permitted to be given
or served by the Trustee or by the Securityholders on the Company may be given
or served in writing by being deposited postage prepaid by registered or
certified mail in a post office letter box addressed (until another address is
filed by the Company with the Trustee for such purpose) to the Company at 1600
Sunflower Avenue, 2nd Floor, Costa Mesa, California 92626, Attention: John
Shindler.  Any notice, direction,
request or demand by any Securityholder or the Company to or upon the Trustee
shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at the office of Wilmington Trust Company at Rodney
Square North, 1100 North Market Street, Wilmington, DE 19890-0001, Attention:
Corporate Trust Administration.

 

Section 14.05         Governing
Law.

 

This Indenture and the
Debt Securities shall each be governed by, and construed in accordance with,
the laws of the State of New York, without regard to conflict of laws
principles of said State other than Section 5-1401 of the New York General
Obligations Law.

 

Section 14.06         Evidence
of Compliance with Conditions Precedent.

 

Upon any application or
demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate stating that in the opinion of the signers all conditions
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 have been complied with
(except that no such Opinion of Counsel is required to be furnished to the
Trustee in connection with the authentication and issuance of Debt Securities).

 

Each certificate or opinion provided for in this
Indenture and delivered to the Trustee with respect to compliance with a
condition or covenant provided for in this Indenture (except certificates
delivered pursuant to Section 3.05) shall include (a) a statement that the
person making such certificate or opinion has read such covenant or condition
and the definitions relating thereto; (b) a brief statement as to the nature
and scope of the examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based; (c) a statement
that, in the opinion of such person, 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

 

53

 

or not such covenant or
condition has been complied with; and (d) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with.

 

Section 14.07         Business
Day Convention.

 

Notwithstanding anything to the contrary contained
herein, if any Interest Payment Date, other than the Maturity Date, any
Optional Redemption Date or the Special Redemption Date, falls on a day that is
not a Business Day, then any interest payable will be paid on, and such
Interest Payment Date will be moved to, the next succeeding Business Day, and
additional interest will accrue for each day that such payment is delayed as a
result thereof.  If the Maturity Date,
any Optional Redemption Date or the Special Redemption Date falls on a day that
is not a Business Day, then the principal, premium, if any, and/or interest
payable on such date will be paid on the next succeeding Business Day, and no
additional interest will accrue in respect of such payment made on such next
succeeding Business Day.

 

Section 14.08         Table
of Contents, Headings, etc.

 

The table of contents and
the titles and headings of the Articles and Sections of this Indenture have
been inserted for convenience of reference only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or
provisions hereof.

 

Section 14.09         Execution
in Counterparts.

 

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

 

Section 14.10         Separability.

 

In case any one or more
of the provisions contained in this Indenture or in the Debt Securities shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provisions of this Indenture or of such Debt Securities, but this Indenture and
such Debt Securities shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein or therein.

 

Section 14.11         Assignment.

 

Subject to Article XI,
the Company will have the right at all times to assign any of its rights or
obligations under this Indenture and the Debt Securities to a direct or
indirect wholly owned Subsidiary of the Company; provided, however,
that, in the event of any such assignment, the Company will remain liable for
all such obligations. Subject to the foregoing, this Indenture is binding upon
and inures to the benefit of the parties hereto and their respective successors
and assigns. This Indenture may not otherwise be assigned by the parties
thereto.

 

54

 

Section 14.12         Acknowledgment
of Rights.

 

The Company acknowledges
that, with respect to any Debt Securities held by the Trust or a trustee of the
Trust, if such trustee of the Trust fails to enforce its rights under this
Indenture as the holder of Debt Securities held as the assets of the Trust
after the holders of a majority in aggregate liquidation amount of the
outstanding Capital Securities of the Trust have so directed in writing such
trustee, a holder of record of such Capital Securities may, to the fullest
extent permitted by law, institute legal proceedings directly against the
Company to enforce such trustee’s rights under this Indenture without first
instituting any legal proceedings against such trustee or any other
Person.  Notwithstanding the foregoing,
if an Event of Default has occurred and is continuing and such event is
attributable to the failure of the Company to pay interest or premium, if any,
on or principal of the Debt Securities on the date such interest, premium, if
any, or principal is otherwise due and payable (or, in the case of redemption,
on the related Optional Redemption Date or the Special Redemption Date (as the case
may be)), the Company acknowledges that a holder of outstanding Capital
Securities of the Trust may directly institute a proceeding against the Company
for enforcement of payment to such holder directly of the principal of or
premium, if any, or interest on the Debt Securities having an aggregate
principal amount equal to the aggregate liquidation amount of the Capital
Securities of such holder on or after the respective due date (or Optional
Redemption Date or Special Redemption Date (as the case may be)) specified in
the Debt Securities.

 

ARTICLE
XV

SUBORDINATION OF DEBT SECURITIES

 

Section 15.01         Agreement
to Subordinate.

 

The Company covenants and
agrees, and each holder of Debt Securities issued hereunder and under any
supplemental indenture (the “Additional Provisions”) by such holder’s
acceptance thereof likewise covenants and agrees, that all Debt Securities
shall be issued subject to the provisions of this Article XV; and each holder
of a Debt Security, whether upon original issue or upon transfer or assignment
thereof, accepts and agrees to be bound by such provisions.

 

The payment by the
Company of the payments due on all Debt Securities issued hereunder and under
any Additional Provisions shall, to the extent and in the manner hereinafter
set forth, be subordinated and junior in right of payment to the prior payment
in full of all Senior Indebtedness of the Company, whether outstanding at the
date of this Indenture or thereafter incurred.

 

No provision of this
Article XV shall prevent the occurrence of any default or Event of Default
hereunder.

 

Section 15.02         Default
on Senior Indebtedness.

 

In the event and during the continuation of any
default by the Company in the payment of principal, premium, interest or any
other payment due on any Senior Indebtedness of the Company following any
applicable grace period, or in the event that the maturity of any Senior
Indebtedness of the Company has been accelerated because of a default, and such
acceleration has not been rescinded or canceled and such Senior Indebtedness
has not been paid

 

55

 

in full, then, in either
case, no payment shall be made by the Company with respect to the payments due
on the Debt Securities.

 

In the event that,
notwithstanding the foregoing, any payment shall be received by the Trustee or
any Securityholder when such payment is prohibited by the preceding paragraph
of this Section, such payment shall, subject to Section 15.06, be held in trust
for the benefit of, and shall be paid over or delivered to, the holders of
Senior Indebtedness or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness
may have been issued, as their respective interests may appear, but only to the
extent that the holders of the Senior Indebtedness (or their representative or
representatives or trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on the Senior Indebtedness and
only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.

 

Section 15.03         Liquidation;
Dissolution; Bankruptcy.

 

Upon any payment by the
Company or distribution of assets of the Company of any kind or character, whether
in cash, property or securities, to creditors upon any dissolution, winding-up,
liquidation or reorganization of the Company, whether voluntary or involuntary
or in bankruptcy, insolvency, receivership or other proceedings, all amounts
due upon all Senior Indebtedness of the Company shall first be paid in full, or
payment thereof provided for in money in accordance with its terms, before any
payment is made by the Company on the Debt Securities; and upon any such
dissolution, winding-up, liquidation or reorganization, any payment by the
Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Securityholders or the
Trustee would be entitled to receive from the Company, except for the
provisions of this Article XV, shall be paid by the Company, or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, or by the Securityholders or by the
Trustee under this Indenture if received by them or it, directly to the holders
of Senior Indebtedness of the Company (pro rata to such holders on the basis of
the respective amounts of Senior Indebtedness held by such holders, as
calculated by the Company) or their representative or representatives, or to
the trustee or trustees under any indenture pursuant to which any instruments
evidencing such Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay such Senior Indebtedness in
full, in money or money’s worth, after giving effect to any concurrent payment
or distribution to or for the holders of such Senior Indebtedness, before any
payment or distribution is made to the Securityholders or to the Trustee.

 

In the event that, notwithstanding the foregoing, any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, prohibited by the foregoing shall be
received by the Trustee or any Securityholder before all Senior Indebtedness of
the Company is paid in full, or provision is made for such payment in money in
accordance with its terms, such payment or distribution shall be held in trust
for the benefit of, and shall be paid over or delivered to, the holders of such
Senior Indebtedness or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments
evidencing such Senior Indebtedness may have been issued, as their respective
interests may appear, as calculated by the Company, for application to the
payment of all Senior Indebtedness of the Company remaining unpaid to the
extent necessary to pay such

 

56

 

Senior Indebtedness in
full in money in accordance with its terms, after giving effect to any
concurrent payment or distribution to or for the benefit of the holders of such
Senior Indebtedness.

 

For purposes of this
Article XV, the words “cash, property or securities” shall not be deemed to
include shares of stock of the Company as reorganized or readjusted, or
securities of the Company or any other corporation provided for by a plan of
reorganization or readjustment, the payment of which is subordinated at least
to the extent provided in this Article XV with respect to the Debt Securities
to the payment of all Senior Indebtedness of the Company, that may at the time
be outstanding, provided, that (a) such Senior Indebtedness is assumed
by the new corporation, if any, resulting from any such reorganization or
readjustment, and (b) the rights of the holders of such Senior Indebtedness are
not, without the consent of such holders, altered by such reorganization or
readjustment.  The consolidation of the
Company with, or the merger of the Company into, another corporation or the
liquidation or dissolution of the Company following the conveyance, transfer or
other disposition of its property as an entirety, or substantially as an
entirety, to another corporation upon the terms and conditions provided for in
Article XI of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section if such other
corporation shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions stated in Article XI of this
Indenture.  Nothing in Section 15.02 or
in this Section shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.06 of this Indenture.

 

Section 15.04         Subrogation.

 

Subject to the payment in
full of all Senior Indebtedness of the Company, the Securityholders shall be
subrogated to the rights of the holders of such Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company
applicable to such Senior Indebtedness until all payments due on the Debt
Securities shall be paid in full; and, for the purposes of such subrogation, no
payments or distributions to the holders of such Senior Indebtedness of any
cash, property or securities to which the Securityholders or the Trustee would
be entitled except for the provisions of this Article XV, and no payment over
pursuant to the provisions of this Article XV to or for the benefit of the
holders of such Senior Indebtedness by Securityholders or the Trustee, shall,
as between the Company, its creditors other than holders of Senior Indebtedness
of the Company, and the holders of the Debt Securities be deemed to be a
payment or distribution by the Company to or on account of such Senior
Indebtedness.  It is understood that the
provisions of this Article XV are, and are intended, solely for the purposes of
defining the relative rights of the holders of the Debt Securities, on the one
hand, and the holders of such Senior Indebtedness, on the other hand.

 

Nothing contained in this Article XV or elsewhere in
this Indenture, any Additional Provisions or in the Debt Securities is intended
to or shall impair, as between the Company, its creditors other than the
holders of Senior Indebtedness of the Company, and the holders of the Debt
Securities, the obligation of the Company, which is absolute and unconditional,
to pay to the holders of the Debt Securities all payments on the Debt
Securities as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
holders of the Debt Securities and creditors of the Company other than the
holders of Senior Indebtedness of the Company, nor shall anything

 

57

 

herein or therein prevent
the Trustee or the holder of any Debt Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article XV of the holders of such
Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

 

Upon any payment or
distribution of assets of the Company referred to in this Article XV, the
Trustee, subject to the provisions of Article VI of this Indenture, and the
Securityholders shall be entitled to conclusively rely upon any order or decree
made by any court of competent jurisdiction in which such dissolution,
winding-up, liquidation or reorganization proceedings are pending, or a
certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent
or other Person making such payment or distribution, delivered to the Trustee
or to the Securityholders, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior
Indebtedness 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 XV.

 

Section 15.05         Trustee
to Effectuate Subordination.

 

Each Securityholder, by
such Securityholder’s acceptance thereof, authorizes and directs the Trustee on
such Securityholder’s behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article XV and
appoints the Trustee such Securityholder’s attorney-in-fact for any and all
such purposes.

 

Section 15.06         Notice
by the Company.

 

The Company shall give
prompt written notice to a Responsible Officer of the Trustee at the Principal
Office of the Trustee of any fact known to the Company that would prohibit the
making of any payment of moneys to or by the Trustee in respect of the Debt
Securities pursuant to the provisions of this Article XV.  Notwithstanding the provisions of this
Article XV or any other provision of this Indenture or any Additional
Provisions, the Trustee shall not be charged with knowledge of the existence of
any facts that would prohibit the making of any payment of moneys to or by the
Trustee in respect of the Debt Securities pursuant to the provisions of this
Article XV unless and until a Responsible Officer of the Trustee at the
Principal Office of the Trustee shall have received written notice thereof from
the Company or a holder or holders of Senior Indebtedness or from any trustee
therefor; and before the receipt of any such written notice, the Trustee,
subject to the provisions of Article VI of this Indenture, shall be entitled in
all respects to assume that no such facts exist; provided, however,
that if the Trustee shall not have received the notice provided for in this
Section at least two Business Days prior to the date upon which by the terms
hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal of or premium, if any, or interest on
any Debt Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purposes 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.

 

The Trustee, subject to
the provisions of Article VI of this Indenture, shall be entitled to
conclusively rely on the delivery to it of a written notice by a Person
representing

 

58

 

himself or herself to be a holder of Senior Indebtedness of the Company
(or a trustee or representative on behalf of such holder) to establish that
such notice has been given by a holder of such Senior Indebtedness or a trustee
or representative on behalf of any such holder or holders.  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 such Senior Indebtedness to participate in any payment or
distribution pursuant to this Article XV, the Trustee may request such Person
to furnish evidence to the reasonable satisfaction of the Trustee as to the
amount of such Senior Indebtedness held by such Person, the 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 XV, 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 15.07         Rights
of the Trustee; Holders of Senior Indebtedness.

 

The Trustee, in its
individual capacity, shall be entitled to all the rights set forth in this
Article XV in respect of any Senior Indebtedness at any time held by it, to the
same extent as any other holder of Senior Indebtedness, and nothing in this
Indenture or any Additional Provisions shall deprive the Trustee of any of its
rights as such holder.

 

With respect to the
holders of Senior Indebtedness of the Company, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article XV, and no implied covenants or
obligations with respect to the holders of such Senior Indebtedness shall be
read into this Indenture or any Additional Provisions against the Trustee.  The Trustee shall not owe or be deemed to
owe any fiduciary duty to the holders of such Senior Indebtedness and, subject
to the provisions of Article VI of this Indenture, the Trustee shall not be
liable to any holder of such Senior Indebtedness if it shall pay over or
deliver to Securityholders, the Company or any other Person money or assets to
which any holder of such Senior Indebtedness shall be entitled by virtue of
this Article XV or otherwise.

 

Nothing in this Article
XV shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 6.06.

 

Section 15.08         Subordination
May Not Be Impaired.

 

No right of any present
or future holder of any Senior Indebtedness of the Company 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 otherwise
be charged with.

 

Without in any way limiting the generality of the
foregoing paragraph, the holders of Senior Indebtedness of the Company may, at
any time and from time to time, without the consent of or notice to the Trustee
or the Securityholders, without incurring responsibility to the Securityholders
and without impairing or releasing the subordination provided in this Article
XV or the obligations hereunder of the holders of the Debt Securities to the
holders of such Senior Indebtedness, do any one or more of the following: (a)
change the manner, place or terms of

 

59

 

payment or extend the
time of payment of, or renew or alter, such Senior Indebtedness, or otherwise
amend or supplement in any manner such Senior Indebtedness or any instrument
evidencing the same or any agreement under which such Senior Indebtedness is
outstanding; (b) sell, exchange, release or otherwise deal with any property
pledged, mortgaged or otherwise securing such Senior Indebtedness; (c) release
any Person liable in any manner for the collection of such Senior Indebtedness;
and (d) exercise or refrain from exercising any rights against the Company or
any other Person.

 

60

 

Wilmington Trust Company, in its capacity as Trustee,
hereby accepts the trusts in this Indenture declared and provided, upon the
terms and conditions herein above set forth.

 

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

 

	
   

  	
  PACIFIC PREMIER BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

61

 

EXHIBIT
A

 

FORM OF DEBT SECURITY

 

[FORM OF FACE OF
SECURITY]

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR
ANY OTHER APPLICABLE SECURITIES LAWS. 
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.  THE HOLDER OF THIS SECURITY OR ANY
INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE
CASE MAY BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY
INTEREST OR PARTICIPATION HEREIN PRIOR TO THE DATE WHICH IS THE LATER OF (i)
TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE
SECURITIES ACT) AFTER THE LATER OF (Y) THE DATE OF ORIGINAL ISSUANCE HEREOF AND
(Z) THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE (AS DEFINED IN RULE 405
UNDER THE SECURITIES ACT) OF THE COMPANY WAS THE HOLDER OF THIS SECURITY OR
SUCH INTEREST OR PARTICIPATION (OR ANY PREDECESSOR THERETO) AND (ii) SUCH LATER
DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW,
ONLY (A) TO THE COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
(“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER”, AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3), (7) OR (8) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY OR SUCH
INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH 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, (D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR
OUTSIDE THE UNITED STATES PURSUANT TO REGULATION S UNDER THE SECURITIES ACT OR
(E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSE (C) OR (E) ABOVE TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO
IT IN ACCORDANCE WITH THE

 

A-1

 

INDENTURE,
A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY.  THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT
WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

 

THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION
HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)
(EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY
REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN
ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER
APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY OR SUCH
INTEREST OR PARTICIPATION IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING.  ANY PURCHASER OR HOLDER OF THIS SECURITY OR
ANY INTEREST OR PARTICIPATION HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS
PURCHASE AND HOLDING HEREOF OR THEREOF, AS THE CASE MAY BE, THAT EITHER (i) IT
IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR
A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER
PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER
PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO
FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE AND HOLDING WILL NOT RESULT IN A
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE
FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.

 

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

 

THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN
MINIMUM DENOMINATIONS OF $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF.  ANY ATTEMPTED TRANSFER OF THIS
SECURITY IN DENOMINATIONS OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND
OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE

 

A-2

 

SHALL
BE DEEMED NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR
PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION,
AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN
THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN.

 

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”). 
THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE DEPOSITORS AND THE
CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS INELIGIBLE AS
COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES AND IS NOT
SECURED.

 

Floating Rate Junior
Subordinated Debt Security due 2034

of

PACIFIC PREMIER BANCORP,
INC.

 

PACIFIC PREMIER BANCORP,
INC., a bank holding company incorporated in the State of Delaware (the
“Company”, which term includes any successor permitted under the Indenture (as
defined herein)), for value received, promises to pay to Wilmington Trust
Company, not in its individual capacity but solely as Institutional Trustee for
PPBI Trust I, a Delaware statutory trust, or registered assigns, the principal
amount of TEN MILLION THREE HUNDRED TEN THOUSAND DOLLARS ($10,310,000) on April
6, 2034 (the “Maturity Date”) (or any Optional Redemption Date or the Special
Redemption Date, each as defined herein, or any earlier date of acceleration of
the maturity of this Debt Security), and to pay interest on the outstanding
principal amount of this Debt Security from March 25, 2004, or from the most
recent Interest Payment Date (as defined below) to which interest has been paid
or duly provided for, quarterly (subject to deferral as set forth herein) in
arrears on January 7, April 7, July 7 and October 7 of each year, commencing on
July 7, 2004 (each, an “Interest Payment Date”), at a floating rate per annum,
which, with respect to any Interest Period (as defined in the Indenture), will
be equal to LIBOR (as defined in the Indenture), as determined on the LIBOR
Determination Date (as defined in the Indenture) for such Interest Period (or,
in the case of the first Interest Period, will be 1.11%), plus 2.75% (the
“Interest Rate”) (provided that the Interest Rate for any Interest
Period may not exceed the highest rate permitted by New York law, as the same
may be modified by United States law of general application) until the principal
hereof shall have been paid or duly provided for, and on any overdue principal
and (without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at an
annual rate equal to the then applicable Interest Rate, compounded
quarterly.  The amount of interest
payable for any Interest Period shall be computed on the basis of a 360-day
year and the actual number of days elapsed in such Interest Period.

 

The interest installment so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
the Indenture, be paid to the Person in whose name this Debt Security (or one
or more Predecessor Securities, as defined in the Indenture) is

 

A-3

 

registered at the close
of business on the “regular record date” for such interest installment, which
shall be the fifteenth day prior to such Interest Payment Date, whether or not
such day is a Business Day (as defined herein).  Any such interest installment (other than Deferred Interest (as
defined herein)) not punctually paid or duly provided for shall forthwith cease
to be payable to the holders on such regular record date and may be paid to the
Person in whose name this Debt Security (or one or more Predecessor Securities)
is registered at the close of business on a special record date to be fixed by
the Trustee for the payment of such defaulted interest, notice whereof shall be
given to the holders of the Debt Securities not less than 10 days prior to such
special record date, all as more fully provided in the Indenture.

 

Payment of the principal
of and premium, if any, and interest on this Debt Security due on the Maturity
Date, any Optional Redemption Date or the Special Redemption Date, as the case
may be, shall be made in immediately available funds against presentation and
surrender of this Debt Security at the office or agency of the Trustee
maintained for that purpose in Wilmington, Delaware, or at the office or agency
of any other Paying Agent appointed by the Company maintained for that purpose
in Wilmington, Delaware or Sacramento, California.  Payment of interest on this Debt Security due on any Interest
Payment Date other than the Maturity Date, any Optional Redemption Date or the
Special Redemption Date, as the case may be, shall be made at the option of the
Company by check mailed to the holder thereof at such address as shall appear
in the Debt Security Register or by wire transfer of immediately available
funds to an account appropriately designated by the holder hereof.  Notwithstanding the foregoing, so long as
the holder of this Debt Security is the Institutional Trustee, payment of the
principal of and premium, if any, and interest on this Debt Security shall be
made in immediately available funds when due at such place and to such account
as may be designated by the Institutional Trustee.  All payments in respect of this Debt Security shall be payable in
any coin or currency of the United States of America that at the time of
payment is legal tender for payment of public and private debts.

 

Notwithstanding anything
to the contrary contained herein, if any Interest Payment Date, other than the
Maturity Date, any Optional Redemption Date or the Special Redemption Date,
falls on a day that is not a Business Day, then any interest payable will be
paid on, and such Interest Payment Date will be moved to, the next succeeding
Business Day, and additional interest will accrue for each day that such payment
is delayed as a result thereof.  If the
Maturity Date, any Optional Redemption Date or the Special Redemption Date
falls on a day that is not a Business Day, then the principal, premium, if any,
and/or interest payable on such date will be paid on the next succeeding
Business Day, and no additional interest will accrue in respect of such payment
made on such next succeeding Business Day.

 

So long as no Event of
Default has occurred and is continuing, the Company shall have the right, from
time to time and without causing an Event of Default, to defer payments of
interest on the Debt Securities by extending the interest payment period on the
Debt Securities at any time and from time to time during the term of the Debt
Securities, for up to 20 consecutive quarterly periods (each such extended
interest payment period, together with all previous and further consecutive
extensions thereof, is referred to herein as an “Extension Period”).  No Extension Period may end on a date other
than an Interest Payment Date or extend beyond the Maturity Date, any Optional
Redemption Date or the Special Redemption Date, as the case may be.  During any Extension Period, interest will
continue to accrue on the Debt Securities, and

 

A-4

 

interest on such accrued interest (such accrued
interest and interest thereon referred to herein as “Deferred Interest”) will
accrue at an annual rate equal to the Interest Rate applicable during such
Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by applicable law.  No
interest or Deferred Interest (except any Additional Amounts (as defined in the
Indenture) that may be due and payable) shall be due and payable during an
Extension Period, except at the end thereof. 
At the end of any Extension Period, the Company shall pay all Deferred
Interest then accrued and unpaid on the Debt Securities; provided, however,
that during any Extension Period, the Company may 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, (ii)
make any payment of principal of or premium, if any, or interest 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 Debt Securities or (iii) make
any payment under any guarantees of the Company that rank in all respects pari passu
with or junior in respect to the Capital Securities Guarantee   (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Company (A) in connection
with any employment contract, benefit plan or other similar arrangement with or
for the benefit of one or more employees, officers, directors or consultants,
(B) in connection with a dividend reinvestment or stockholder stock purchase
plan or (C) 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 such
Extension Period, (b) as a result of any 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 stockholder’s rights plan, or the
issuance of rights, stock or other property under any stockholder’s 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).  Prior to the termination of any Extension Period, the Company may
further extend such Extension Period, provided, that no Extension Period
(including all previous and further consecutive extensions that are part of
such Extension Period) shall exceed 20 consecutive quarterly periods.  Upon the termination of any Extension Period
and upon the payment of all Deferred Interest, the Company may commence a new
Extension Period, subject to the foregoing requirements.  The Company must give the Trustee notice of
its election to begin or extend an Extension Period at least one Business Day
prior to the regular record date applicable to the next succeeding Interest
Payment Date.

 

The indebtedness
evidenced by this Debt 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 Indebtedness (as defined in the Indenture), and this Debt Security is
issued subject to the provisions of the Indenture with respect thereto.  Each holder of this Debt Security, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on such holder’s behalf to take such action
as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee such

 

A-5

 

holder’s attorney-in-fact for any and all such purposes.  Each holder hereof, by such holder’s
acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder
of Senior Indebtedness, whether now outstanding or hereafter incurred, and
waives reliance by each such holder upon said provisions.

 

The Company waives
diligence, presentment, demand for payment, notice of nonpayment, notice of
protest, and all other demands and notices.

 

This Debt Security shall
not be entitled to any benefit under the Indenture hereinafter referred to and
shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by or on behalf of the Trustee.

 

The provisions of this
Debt Security are continued on the reverse side hereof and such continued
provisions shall for all purposes have the same effect as though fully set
forth at this place.

 

A-6

 

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

 

	
   

  	
  PACIFIC PREMIER BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
								

 

 

CERTIFICATE OF
AUTHENTICATION

 

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

 

	
   

  	
  WILMINGTON TRUST COMPANY,

  
	
   

  	
   not in its individual capacity but solely as

  
	
   

  	
   the Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
								

 

A-7

 

[FORM OF REVERSE OF SECURITY]

 

This Debt Security is one
of a duly authorized series of debt securities of the Company (collectively,
the “Debt Securities”), all issued or to be issued pursuant to an Indenture
(the “Indenture”), dated as of March 25, 2004, duly executed and delivered
between the Company and Wilmington Trust Company, as Trustee (the “Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the holders of
the Debt Securities of which this Debt Security is a part.

 

Upon the occurrence and
continuation of a Tax Event, an Investment Company Event or a Capital Treatment
Event (each, a “Special Event”), the Company shall have the right to redeem
this Debt Security, at its option, in whole with all other Debt Securities but
not in part, at any time, within 90 days following the occurrence of such
Special Event (the “Special Redemption Date”), at the Special Redemption Price
(as defined herein).  In the event that
the Special Redemption Date falls on a day prior to the LIBOR Determination
Date for any Interest Period, then the Company shall be required to pay to Securityholders,
on the Business Day following such LIBOR Determination Date, any additional
amount of interest that would have been payable on the Special Redemption Date
had the amount of interest determined on such LIBOR Determination Date been
known on the first day of such Interest Period.

 

The Company shall also
have the right to redeem this Debt Security at its option, in whole or
(provided that all accrued and unpaid interest has been paid on all Debt
Securities for all Interest Periods terminating on or prior to such date) from
time to time in part, on any Interest Payment Date on or after April 7, 2009
(each, an “Optional Redemption Date”), at the Optional Redemption Price (as
defined herein).

 

Any redemption pursuant
to the preceding two paragraphs will be made, subject to receipt by the Company
of prior approval from the Office of Thrift Supervision (the “OTS”) if then
required under applicable capital guidelines or policies of the OTS, upon not
less than 30 days’ nor more than 60 days’ prior written notice.  If the Debt Securities are only partially
redeemed by the Company, the Debt Securities will be redeemed pro rata or by
any other method utilized by the Trustee. 
In the event of redemption of this Debt Security in part only, a new
Debt Security or Debt Securities for the unredeemed portion hereof will be
issued in the name of the holder hereof upon the cancellation hereof.

 

“Optional Redemption
Price” means an amount in cash equal to 100% of the principal amount of this
Debt Security being redeemed plus unpaid interest accrued thereon to the
related Optional Redemption Date.

 

“Special Redemption Price” means, with respect to the
redemption of this Debt Security following a Special Event, an amount in cash
equal to 103.525% of the principal amount of this Debt Security to be redeemed
prior to April 7, 2005 and thereafter equal to the percentage of the principal
amount of this Debt Security that is specified below for the Special Redemption
Date plus, in each case, unpaid interest accrued thereon to the Special
Redemption Date:

 

A-8

 

	
  Special Redemption During the
  12-Month

  Period Beginning April 7,

  	
   

  	
  Percentage
  of Principal Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  103.140

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2006

  	
   

  	
  102.355

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2007

  	
   

  	
  101.570

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  100.785

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2009 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In case an Event of Default, as defined in the
Indenture, shall have occurred and be continuing, the principal of all of the
Debt Securities may be declared, and, in certain cases, shall ipso  facto
become, due and payable, and upon any such declaration of acceleration shall
become due and payable, in each case, in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the
holders of a majority in aggregate principal amount of the Debt Securities at
the time outstanding affected thereby, as specified in the Indenture, to
execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or
of any supplemental indenture or of modifying in any manner the rights of the
holders of the Debt Securities; provided, however, that no such
supplemental indenture shall, among other things, without the consent of the
holders of each Debt Security then outstanding and affected thereby
(i) change the Maturity Date of any Debt Security, or reduce the principal
amount thereof or any premium thereon, or reduce the rate (or manner of
calculation of the rate) or extend the time of payment of interest thereon, or
reduce (other than as a result of the maturity or earlier redemption of any
such Debt Security in accordance with the terms of the Indenture and such Debt
Security) or increase the aggregate principal amount of Debt Securities then
outstanding, or change any of the redemption provisions, or make the principal
thereof or any interest or premium thereon payable in any coin or currency
other than United States Dollars, or impair or affect the right of any holder
to institute suit for payment thereof, or (ii) reduce the aforesaid
percentage of Debt Securities the holders of which are required to consent to
any such supplemental indenture.  The
Indenture also contains provisions permitting the holders of a majority in
aggregate principal amount of the Debt Securities at the time outstanding, on
behalf of the holders of all the Debt Securities, to waive any past default in
the performance of any of the covenants contained in the Indenture, or
established pursuant to the Indenture, and its consequences, except (a) a
default in payments due in respect of any of the Debt Securities, (b) in
respect of covenants or provisions of the Indenture which cannot be modified or
amended without the consent of the holder of each Debt Security affected, or
(c) in respect of the covenants of the Company relating to its ownership
of Common Securities of the Trust.  Any
such consent or waiver by the holder of this Debt Security (unless revoked as
provided in the Indenture) shall be conclusive and binding upon such holder and
upon all future holders and owners of this Debt Security and of any Debt
Security issued in exchange

 

A-9

 

herefor or in
place hereof (whether by registration of transfer or otherwise), irrespective
of whether or not any notation of such consent or waiver is made upon this Debt
Security.

 

No reference herein to
the Indenture and no provision of this Debt Security or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to make all payments due on this Debt Security at the time and
place and at the rate and in the money herein prescribed.

 

As provided in the
Indenture and subject to certain limitations herein and therein set forth, this
Debt Security is transferable by the holder hereof on the Debt Security
Register (as defined in the Indenture) of the Company, upon surrender of this
Debt Security for registration of transfer at the office or agency of the
Trustee in Wilmington, Delaware, or at any other office or agency of the
Company in Wilmington, Delaware or Sacramento, California, accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee duly executed by the holder hereof or such holder’s
attorney duly authorized in writing, and thereupon one or more new Debt
Securities of authorized denominations and for the same aggregate principal
amount will be issued to the designated transferee or transferees.  No service charge will be made for any such
registration of transfer, but the Company or the Trustee may require payment of
a sum sufficient to cover any tax, fee or other governmental charge payable in
relation thereto as specified in the Indenture.

 

Prior to due presentment
for registration of transfer of this Debt Security, the Company, the Trustee,
any Authenticating Agent, any Paying Agent, any transfer agent and the Debt
Security registrar may deem and treat the holder hereof as the absolute owner
hereof (whether or not this Debt Security shall be overdue and notwithstanding
any notice of ownership or writing hereon) for the purpose of receiving payment
of the principal of and premium, if any, and interest on this Debt Security and
for all other purposes, and none of the Company, the Trustee, any
Authenticating Agent, any Paying Agent, any transfer agent or any Debt Security
registrar shall be affected by any notice to the contrary.

 

As provided in the
Indenture and subject to certain limitations herein and therein set forth, Debt
Securities are exchangeable for a like aggregate principal amount of Debt
Securities of different authorized denominations, as requested by the holder
surrendering the same.

 

The Debt Securities are
issuable only in registered certificated form without coupons.

 

No recourse shall be had
for the payment of the principal of or premium, if any, or interest on this
Debt Security, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture, against any incorporator,
stockholder, officer, director, employee or agent, past, present or future, as
such, of the Company or of any predecessor or successor corporation of the
Company, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the
issuance hereof, expressly waived and released.

 

A-10

 

All terms used but not defined in this Debt Security
shall have the meanings assigned to them in the Indenture.

 

THIS DEBT SECURITY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES OF SAID STATE OTHER THAN SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW.

 

A-11

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