Document:

EXERCISE 10.40

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), dated as of November 16,
2006 by and between Fittipaldi Logistics, Inc., a Nevada Corporation, its
affiliates, subsidiaries and assigns (the "Company"), and Frank P. Reilly (the
"Employee").

                              W I T N E S S E T H:
                              --------------------

         WHEREAS, the Company desires to employ the Employee as the Executive
Vice President, Strategy and Market Development and the Employee desires to be
so employed; and

         WHEREAS, Employee and the Company desire to set forth in writing all of
their respective duties, rights and obligations with respect to the Employee's
employment by the Company

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and obligations hereinafter set forth, the parties hereto, intending
to be legally bound, hereby agree as follows:

1.       Employment and Term. The Company hereby agrees to employ the Employee,
         and the Employee hereby accepts such continued employment by the
         Company, in the capacity and upon the terms and conditions hereinafter
         set forth. The term of employment under this Agreement shall be for the
         period commencing November 16, 2006 (the "Commencement Date") and
         ending on the second anniversary of the Commencement Date or November
         15, 2008) unless earlier terminated as herein provided (the "Term of
         Employment"). Thereafter, this Agreement shall be renewed for
         successive one (1) year terms unless previously terminated pursuant to
         Section 5 herein or if either party elects to terminate his Agreement
         by written notice to the other party at least ninety (90) days prior to
         the expiration of the then-current Term of Employment. The last day of
         the Employee's Term of Employment shall be referred to in this
         Agreement as the "Date of Termination."

2.       Duties. During the Term of Employment, the Employee shall serve as the
         Company's Executive Vice President, Strategy and Market Development and
         shall assume those responsibilities customarily associated with and
         incident to this position. The Employee shall serve the Company
         faithfully, conscientiously and to the best of the Employee's ability
         and shall promote the interests and reputation of the Company. Unless
         prevented by sickness or disability, the Employee shall devote all of
         his time, attention, knowledge, energy and skills, during normal
         working hours, and at such other times as the Employee's duties may
         reasonably require, to the duties of the Employee's employment. The
         principal place of employment of the Employee shall be the Company's
         principal executive offices or at such other place(s) to be determined
         by the Company and Employee. The Employee acknowledges that in the
         course of his employment, Employee may be required, from time to time,
         to travel on behalf of the Company at the Company's expense. The

<PAGE>
         Employee's principal work place shall be in Florida. The Company shall
         not prohibit Employee from additional opportunities in his free time as
         long as there is not a conflict of interest now or in the future with
         Fittipaldi Logistics and its affiliates. Employee must receive prior
         permission in writing from the Board of Directors to execute additional
         opportunities.

3.       Compensation and Benefits. As full and complete compensation for the
         Employee's execution and delivery of this Agreement and performance of
         any services hereunder, the Company shall pay, grant or provide the
         Employee with the following beginning upon the Commencement Date,
         though the Company may elect to defer salary until the date that the
         Company has received an additional aggregate funding of at least Two
         Million Five Hundred Thousand Dollars ($2,500,000) following the
         Commencement Date (the "Deferral Period"):

         (a)      Base Salary. At the end of the Deferral Period, the Company
                  shall pay the Employee a base salary (the "Base Salary") at an
                  annual rate of $120,000 less any amounts paid to Employee by
                  any individual or entity affiliated with Emerson Fittipaldi,
                  his affiliates or assigns (the "Fittipaldi Group") as a result
                  of any business relationship between the Fittipaldi Group and
                  the Company. Base Salary shall be payable at such times and in
                  accordance with the standard payroll practices of the Company,
                  but in no event less than twice per month.

         (b)      Signing Bonus. At the end of the Deferral Period, the Company
                  shall pay the Employee a signing bonus of $20,000.

         (c)      Options. Effective on the Commencement Date, the Employee will
                  be granted fully vested options to purchase Six Million
                  (6,000,000) shares of common stock at a strike price of
                  $0.025. These options will expire five years after their grant
                  date.

         (d)      Employee Benefits. The Company shall afford the Employee the
                  opportunity to participate during the Term of Employment in
                  any medical, dental, disability and life insurance,
                  retirement, savings and any other employee benefits plans or
                  programs (including perquisites) which the Company maintains
                  for its senior executives.

         (e)      Expenses. The Employee shall be entitled to reimbursement of
                  all reasonable business expenses (in accordance with the
                  Company's policies for its senior executives, as the same may
                  be amended from time to time in the Company's sole
                  discretion), within one week following the Employee's
                  submission of an appropriate expense report and related
                  receipts and/or vouchers to the Company.

         (f)      Vacations, Holidays or Temporary Leave. The Employee shall be
                  entitled to take vacations in accordance with the Company's
                  vacation policy for other senior executives. Such vacation(s)
                  shall be taken at such time or times, and as a whole or in

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<PAGE>
                  increments, as the Employee shall elect, consistent with the
                  reasonable needs of the Company's business. The Employee shall
                  further be entitled to the number of paid holidays and leaves
                  for illness or temporary disability in accordance with the
                  policies of the Company for its senior executives (as such
                  policies may be amended from time to time or terminated in the
                  Company's sole discretion).

4.       Restrictive Covenant; Protection of Confidential Information.

         (a)      The Employee recognizes and acknowledges that certain
                  confidential business and technical information used by the
                  Employee in connection with his duties hereunder including,
                  without limitation, certain confidential and proprietary
                  information relating to the design, development, construction
                  and marketing of Internet services, is a valuable, special and
                  unique asset of the Company, such information, subject to
                  Section 4(c) below, collectively being referred to as the
                  "Confidential Information". During and subsequent to the Term
                  of Employment, the Employee shall not (a) use Confidential
                  Information or any part thereof other than in connection with
                  his duties hereunder, (b) disclose such information to any
                  person, firm, corporation, association or other entity for any
                  purpose or reason unless directed to do so by the Board of
                  Directors. Notwithstanding the foregoing, the Employee is
                  being hired as an expert in the field of logistics and,
                  therefore, logistic practices are excluded from this
                  provision.

         (b)      During the Term of Employment and for all time thereafter, the
                  Employee shall not, directly or indirectly, furnish or make
                  accessible to any person, firm, corporation or other business
                  entity, whether or not he competes with the business of the
                  Company, any trade secret obtained by the Employee during his
                  employment by the Company which relates to the business
                  practices, methods, processes or other confidential or secret
                  aspects of the business of the Company without the prior
                  written consent from the Company (such information being
                  referred to as the "Company Confidential Information").

         (c)      Confidential Information and Company Confidential Information
                  shall not include any information or documents that (a) are,
                  or become, publicly available without breach by the Employee
                  of this Section 4, (b) the Employee receives from any third
                  party who, to the best of the Employee's knowledge upon
                  reasonable inquiry, is not in breach of an obligation of
                  confidence with the Company, or (c) is required to be
                  disclosed by law, statute, governmental or judicial
                  proceeding; provided, however, that in the event that the
                  Employee is requested by any governmental or judicial
                  authority to disclose any Confidential Information, the
                  Employee shall give the Company prompt notice of such request,
                  such that the Company may seek a protective order or other
                  appropriate relief, and in any such proceeding the Employee
                  shall disclose only so much of the Confidential Information as
                  is required to be disclosed.

         (d)      The Employee acknowledges that his services are of a special,
                  unique and extraordinary character and, his position with the
                  Company places him in a position of confidence and trust with

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<PAGE>
                  the clients and employees of the Company, and in connection
                  with his services to the Company, the Employee will have
                  access to Confidential Information vital to the Company's
                  business. The Employee further acknowledges that in view of
                  the nature of the business, in which the Company is engaged,
                  the foregoing confidentiality provision is reasonable and
                  necessary in order to protect the legitimate interests of the
                  Company and that violation thereof would result in irreparable
                  injury to the Company. Accordingly, the Employee consents and
                  agrees that if the Employee violates or threatens to violate
                  any of the provisions of Section 4 hereof, the Company would
                  sustain irreparable harm and, therefore, the Company will be
                  entitled to obtain from any court of competent jurisdiction,
                  without posting any bond or other security, preliminary and
                  permanent injunctive relief as well as damages and an
                  equitable accounting of all earnings, profits and other
                  benefits arising from such violation, which rights shall be
                  cumulative and in addition to any other rights or remedies in
                  law or equity to which the Company may be entitled.

5.       Termination of Employment:

         (a)      The Employee's employment with the Company shall terminate
                  upon the occurrence of any of the following events:

                  (i)   The Scheduled Date of Termination;

                  (ii)  The death of the Employee during the Term of Employment;

                  (iii) The Disability (as defined below) of Employee during the
                        Term of Employment; or

                  (iv)  Upon written notice to the Employee by the Company of
                        termination of his employment for Cause (as defined in
                        Section 5(c)).

                  (v)   Resignation without good reason

                  (vi)  Termination without cause (as defined below)

         (b)      For purposes of this Agreement, the "Disability" of the
                  Employee shall mean his inability, because of mental or
                  physical illness or incapacity, whether total or partial, to
                  perform his full time duties under this Agreement with
                  reasonable accommodation for a period aggregating 90 days out
                  of any 12-month period under circumstances where, in the
                  opinion of a qualified physician reasonably acceptable to the
                  Company, it is reasonably certain that the Employee will not
                  be able to resume his duties on a regular full time basis
                  within 30 days of the date the Employee receives notice of
                  termination for Disability.

         (c)      For purposes of this Agreement, the term "Cause" shall mean
                  the Employee's i) conviction or entry of a plea of guilty or
                  nolo contendere, with respect to any felony; (ii) commission

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<PAGE>
                  of any act of willful misconduct, gross negligence, fraud or
                  dishonesty that materially affects the Company as stated in
                  the Fittipaldi Logistics Employee Handbook Code of Conduct; or
                  (iii) violation of any material term of this Agreement or any
                  material written policy of the Company, provided that the
                  Company first deliver written notice thereof to the Employee
                  and the Employee shall not have cured such violation within
                  thirty (30) days after receipt of such written notice.

6.       Payments upon Termination of Employment:

         (a)      Death or Disability: If the Employee's employment hereunder is
                  terminated due to the Employee's death or disability pursuant
                  to Sections 5(a)(ii)(iii), the Company shall pay or provide to
                  the Employee, his designated beneficiary or his estate (i) all
                  Base Salary pursuant to Section 3(a) hereof, any expenses
                  pursuant to 3(c), any accrued vacation pursuant to Section
                  3(e) and any bonus pursuant to Section 3(f) hereof, in each
                  case which has been earned but unpaid, or incurred but not
                  reimbursed, as of the Date of Termination; and (ii) any
                  benefits to which the Employee may be entitled under any
                  employee benefits plan or program pursuant to Section 3(b)
                  hereof in which he is a participant in accordance with the
                  terms of such plan or program up to and including the Date of
                  Termination. Should the Company wish to purchase insurance to
                  cover the costs associated with the Employee's termination of
                  employment pursuant to Sections 5(a) (i), (ii), (iii), the
                  Employee agrees to execute any and all necessary documents
                  necessary to effectuate said insurance.

         (b)      Termination for Cause, Resignation Without Good Reason, or
                  Expiration of Term of Employment: If the Employee's employment
                  hereunder is terminated due to the termination of the
                  Employee's employment by the Company for "Cause" pursuant to
                  Section 5(a)(iv) or due to the Employee's resignation Without
                  Good Reason pursuant, the Company shall pay or provide to the
                  Employee (i) all base salary pursuant to Section 3(a) hereof
                  and any vacation pay pursuant to Section 3(e) hereof, in each
                  case which has been earned but unpaid as of the Date of
                  Termination and (ii) any benefits to which the Employee may be
                  entitled under any employee benefits plan or program pursuant
                  to Section 3(b) hereof in which he is a participant in
                  accordance with the terms of such plan or program up to and
                  including the Date of Termination.

         (c)      Termination Without Cause: If the Employee's employment
                  hereunder is terminated due to the termination of the
                  Employee's employment by the Company Without Cause the
                  Employee shall be entitled to all compensation for the term of
                  the Contract to be paid in a lump sum payment within ten (10)
                  days of termination.

         (d)      No Other Payments. Employee shall not be entitled to receive
                  any other payments or benefits from the Company due to the
                  termination of his employment, including but not limited to,
                  any employee benefits under any of the Company's employee
                  benefits plans or programs (other than at the Employee's

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<PAGE>
                  expense under the Consolidated Omnibus Budget Reconciliation
                  Act of 1985 or pursuant to the terms of any pension plan which
                  the Company may have in effect from time to time). Upon
                  termination, all unvested options provided to Employee shall
                  be deemed null and void unless under the circumstances defined
                  in Section 5(a) (vi) or 5(d) (iii). Unvested options shall not
                  vest after Employee's receipt of a notice of termination
                  pursuant to Section 5(a)(iv) hereof provided, however, if such
                  notice was provided pursuant to Section 5(c)(iii) hereof and
                  Employee cures such breach within the applicable time period,
                  Employee's options may vest subsequent thereto.

7.       No Conflicting Agreements; Indemnification:

         (a)      The Employee hereby represents and warrants that he is not a
                  party to any agreement, or non-competition or other covenant
                  or restriction contained in any agreement, commitment,
                  arrangement or understanding (whether oral or written), which
                  would in any way conflict with or limit his ability to
                  commence work on the first day of the Term of Employment or
                  would otherwise limit his ability to perform all
                  responsibilities in accordance with the terms and subject to
                  the conditions of this Agreement.

         (b)      The Employee agrees that the compensation provided for in
                  Section 3 represents the minimum compensation to be paid to
                  Employee in respect of the services performed or to be
                  performed for the Company by Employee.

8.       Deductions and Withholding. The Employee agrees that the Company shall
         withhold from any and all compensation required to be paid to the
         Employee pursuant to this Agreement all federal, state, local and/or
         other taxes which the Company determines are required to be withheld in
         accordance with applicable statutes and/or regulations from time to
         time in effect and all amounts required to be deducted in respect of
         the Employee's coverage under applicable employee benefit plans.

9.       Entire Agreement. This Agreement embodies the entire agreement of the
         parties with respect to the Employee's employment and supersedes any
         other prior oral or written agreements between the Employee and the
         Company, including but not limited to, the Original Employment
         Agreement. This Agreement may not be changed or terminated orally but
         only by an agreement in writing signed by the parties hereto.

10.      Waiver. The waiver by the Company or a breach of any provision of this
         Agreement by the Employee shall not operate or be construed as a waiver
         of any subsequent breach by the Employee. The waiver by the Employee of
         a breach of any provision of this Agreement by the Company shall not
         operate or be construed as a waiver of any subsequent breach by the
         Company.

11.      Governing Law. This Agreement shall be subject to, and governed by, the
         laws of the State of Florida applicable to contracts made and to be
         performed in the State of Florida, regardless of where the Employee is
         in fact required to work. Arbitration clause would be appropriate

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<PAGE>
12.      Jurisdiction. Any legal suit, action or proceeding against any party
         hereto arising out of or relating to this Agreement shall be instituted
         in a federal or state court in the State of Florida, and each party
         hereto waives any objection which it may now or hereafter have to the
         laying of venue of any such suit, action or proceeding and each party
         hereto irrevocably submits to the jurisdiction of any such court in any
         suit, action or proceeding.

13.      Assignability. The obligations of the Employee may not be delegated
         and, except as expressly provided in Section 5 relating to the
         designation of beneficiaries, the Employee may not, without the
         Company's written consent thereto, assign, transfer, convey, pledge,
         encumber, hypothecate or otherwise dispose of this Agreement or any
         interest therein. Any such attempted delegation or disposition shall be
         null and void and without effect. The Company and the Employee agree
         that this Agreement and all of the Company's rights and obligations
         hereunder may be assigned or transferred by the Company to, and may be
         assumed by, may become binding upon, and may inure to the benefit of,
         any successor to the Company. The term "successor" shall mean, with
         respect to the Company, any other corporation or other entity that by
         merger, consolidation or purchase, acquires all or a material part of
         the assets of the Company. Any assignment by the Company of its rights
         and obligations hereunder to any successor shall not be considered a
         termination of employment for purposes of this Agreement.

14.      Severability. If any provision of this Agreement as applied to either
         party or to any circumstances shall be adjudged by a court of competent
         jurisdiction to be void or unenforceable, the same shall in no way
         affect any other provision of this Agreement or the validity or
         enforceability of this Agreement.

15.      Notices. All notices to the Employee hereunder shall be in writing and
         shall be delivered personally or sent by registered or certified mail,
         return receipt

                                 Frank P. Reilly
                                 1415 Sunset Harbour Dr., Apt. 406
                                 Miami Beach, FL  33139

16.      All notices to the Company hereunder shall be in writing and shall be
         delivered personally or sent by registered or certified mail, return
         receipt requested, to:

                                 Fittipaldi Logistics, Inc.
                                 903 Clint Moore Rd.
                                 Boca Raton, FL 33487

         Either party may change the address to which notices shall be sent by
         sending written notice of such change of address to the other party.

17.      Section Headings. The section headings contained in this Agreement are
         for reference purposes only and shall not affect in any way the meaning
         or interpretation of this Agreement.

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<PAGE>
18.      Counterparts. This Agreement may be executed in one or more
         counterparts, each of which shall be deemed to be an original, but all
         of which taken together shall constitute one and the same instrument.

19.      Attorneys' Fees. In the event that either party hereto commences
         litigation against the other to enforce such party's rights hereunder,
         the prevailing party shall be entitled to recover all costs, expenses
         and fees, including reasonable attorneys' fees.

20.      Neutral Construction. Each party to this Agreement was represented by
         counsel, or had the opportunity to consult with counsel. No party may
         rely on any drafts of this Agreement in any interpretation of the
         Agreement. Each party to this Agreement has reviewed this Agreement and
         has participated in its drafting and, accordingly, no party shall
         attempt to invoke the normal rule of construction to the effect that
         ambiguities are to be resolved against the drafting party in any
         interpretation of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
         Agreement as of the date first above written.

                                          FITTIPALDI LOGISTICS, INC.,
                                          a Nevada Corporation

                                          By: /s/ David S. Brooks
                                              -------------------
                                              David S. Brooks, Chief Executive
                                                Officer

                                          EMPLOYEE

                                          By: /s/ Frank P. Reilly
                                              -------------------
                                                Frank P. Reilly

                                       8Exhibit
4.1

 

EXECUTION COPY

 

 

 

 

 

SECOND SUPPLEMENTAL INDENTURE

dated as of April 30,
2007

to

JUNIOR SUBORDINATED INDENTURE

dated as of December 15,
1996

between

STATE STREET CORPORATION

as ISSUER

and

U.S. BANK NATIONAL
ASSOCIATION

as INDENTURE TRUSTEE

JUNIOR SUBORDINATED DEBENTURES DUE
JUNE 15, 2037

 

 

This SECOND SUPPLEMENTAL INDENTURE, dated as of April
30, 2007 (the “Second Supplemental Indenture”), to the Indenture, dated as of
December 15, 1996, is made between STATE STREET CORPORATION, a Massachusetts
corporation (the “Corporation”), and U.S. Bank National
Association, a
national banking association (the “Trustee”). 
All capitalized terms used in this Second Supplemental Indenture and not
otherwise defined herein have the meanings given such terms in the Original
Indenture (as defined below).

W  I  T  N  E  S  S
E  T  H :

WHEREAS,
the Corporation and The Bank of New York (as successor in interest to J.P.
Morgan Chase & Co. (as successor in interest to Bank One Trust Company,
N.A. (as successor in interest to The First National Bank of Chicago))), which
was removed from State Street Capital Trust IV as trustee by an instrument of
removal dated April 23, 2007) entered into an indenture, dated as of December
15, 1996 (the “Original Indenture”), pursuant to which one or more series of
unsecured junior subordinated debt securities of the Corporation (the “Securities”)
may be issued from time to time; and

WHEREAS,
Section 3.1 of the Original Indenture permits certain the terms of any
Securities to be established in a supplemental indenture to the Original
Indenture; and

WHEREAS,
Section 9.1 of the Original Indenture provides that a supplemental indenture
may be entered into by the Corporation and the Trustee, without the consent of
any Holders of Securities, to establish the form and certain terms of the
Securities of any series and to change any of the provisions of the Original
Indenture, provided that such change does not apply to any Outstanding
Securities; and

WHEREAS,
the Corporation has requested the Trustee to join with it in the execution and
delivery of this Second Supplemental Indenture in order to supplement and amend
the Original Indenture by, among other things, establishing the form and terms
of a series of Securities to be known as the Corporation’s Floating Rate Junior
Subordinated Debentures (the “Debentures”) and amending certain provisions
thereof; and

WHEREAS,
State Street Capital Trust IV, a Delaware statutory trust (the “Trust”),
intends to offer to the public $800,000,000 aggregate liquidation amount of its
Capital Securities, representing an undivided preferred beneficial interest in
the assets of the Trust (the “Capital Securities”), and proposes to invest the
proceeds from such offering, together with the proceeds of the sale of $10,000
aggregate liquidation amount of the Trust’s common securities (the “Common
Securities”) to the Corporation, in $800,010,000 aggregate principal amount of
the Debentures;

WHEREAS,
for purposes of the Original Indenture, the Trust shall constitute an Issuer
Trust, the Capital Securities shall constitute Capital Securities, and the
Trust’s common securities shall constitute Common Securities; and

WHEREAS,
the Corporation and the Trustee desires to enter into this Second Supplemental
Indenture pursuant to Sections 3.1 and 9.1 of the Original Indenture as
referred to above; and

 

WHEREAS,
all necessary actions to make this Second Supplemental Indenture a valid
agreement of the Corporation and the Trustee and a valid supplement to the
Original Indenture have been duly taken,

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and intending to be legally bound, the parties to this Second Supplemental
Indenture mutually covenant and agree as follows:

ARTICLE I.

DESIGNATION AND
TERMS OF DEBENTURES

1.1  Establishment of Series.  There is hereby created a series of
Securities to be known and designated as the Debentures, to be in substantially
the form and in accordance with the terms set forth in Exhibit A,
attached hereto, subject to changes in the form thereof made by the Corporation
and acceptable to the Trustee, and which shall be subordinated and junior to
all existing and future Senior Debt (as defined in Section 1.17 of this Second
Supplemental Indenture).  For purposes of
the Original Indenture, the Debentures shall constitute a separate series of
Securities.

1.2  Limit on Aggregate Principal Amount.  The aggregate principal amount of Debentures
that may be issued under this Second Supplemental Indenture is limited to
$800,010,000.

1.3  Form and Denominations.  The Debentures will be issued only in fully
registered form, and the authorized denominations of the Debentures shall be
$1,000 principal amount and any integral multiple thereof.  The Debentures will be denominated in U.S.
dollars and payments of principal and interest will be made in U.S. dollars.

1.4  Scheduled Maturity Date and Final
Repayment Date.

(a)                                  The
scheduled maturity date for the payment of principal of and any accrued and
unpaid interest on the Debentures initially is June 15, 2037 or if such day is
not a Business Day (as defined in Section 1.9(m) of this Second Supplemental
Indenture), the following Business Day (the “Scheduled Maturity Date”).  On June 15, 2017, the Corporation may elect,
subject to the following criteria, to extend the Scheduled Maturity Date for an
additional ten-year period resulting in the Schedule Maturity Date being reset
to June 15, 2047:

(1)   on June 15, 2017, the Debentures are rated
investment grade by Moody’s Investors Service, Inc. (“Moody’s”) or Standard
& Poor’s Ratings Services (“S&P”) or, if Moody’s and S&P (or their
respective successors) are no longer in existence, the equivalent rating by a
nationally recognized statistical rating organization within the meaning of
15c3-1(c)(2)(vi)(F) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”);

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(2)   during the three years prior to June 15,
2017, (i) no event of default has occurred or is occurring in respect of any
payment obligation on, or financial covenant in, any of the Corporation’s then
outstanding debt for money borrowed having an aggregate principal amount of
$100 million or greater and (ii) the Corporation did not have any outstanding
deferred payments under any of its then outstanding preferred stock or debt for
money borrowed; and

(3)   on June 15, 2017, the Corporation delivered a
written certification to the Trustee dated as of such date stating that on such
date (i) the Corporation believes that the likelihood that the Corporation will
elect to defer interest on the Debentures is remote, (ii) the Corporation
expects to make all required payments on the Debentures in accordance with
their terms, and (iii) the Corporation expects to be able to satisfy its
obligations under the replacement capital covenant, dated as of the date hereof
and attached hereto as Exhibit B (the “Replacement Capital Covenant”), relating
to the Debentures.

No modification of the foregoing criteria
will be effective against any Holder of Debentures without the Holder’s
consent.  From and after June 15, 2017,
if the Scheduled Maturity Date is extended as set forth above, the Scheduled
Maturity Date will be the Scheduled Maturity Date as so extended.

(b)                                 The
principal of, and all accrued and unpaid interest on, all outstanding
Debentures shall initially be due and payable on June 1, 2067, or if such day
is not a Business Day (as defined in Section 1.9(m) of this Supplemental
Indenture), the following Business Day (the “Final Repayment Date”).  On June 15, 2017, the Corporation may elect,
subject to the following criteria, to extend the Final Repayment Date for an
additional 10-year period resulting in the Final Repayment Date being extended
to June 1, 2077:

(1)   on June 15, 2017 the Debentures are rated
investment grade by Moody’s or S&P or, if Moody’s and S&P (or their
respective successors) are no longer in existence, the equivalent rating by a
nationally recognized statistical rating organization within the meaning of 15c3-1(c)(2)(vi)(F)
under the Exchange Act;

(2)   during the three years prior to June 15,
2017, (i) no event of default has occurred or is occurring in respect of any
payment obligation on, or financial covenant in, any of the Corporation’s then
outstanding debt for money borrowed having an aggregate principal amount of
$100 million or greater and (ii) the Corporation did not have any outstanding
deferred 

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payments under
any of its then outstanding preferred stock or debt for money borrowed; and

(3)   on June 15, 2017, the Corporation delivered a
written certification to the Trustee dated as of such date stating that on such
date (i) the Corporation believes that the likelihood that the Corporation will
elect to defer interest on the Debentures is remote, (ii) the Corporation
expects to make all required payments on the Debentures in accordance with
their terms, and (iii) the Corporation expects to be able to satisfy its
obligations under the Replacement Capital Covenant relating to the Debentures.

From and after June 15, 2017, if the Final Repayment
Date is extended as set forth above, the Final Repayment Date will be the Final
Repayment Date as so extended.

1.5  Obligation to Repay on
the Scheduled Maturity Date.  The
Corporation’s obligation to repay all principal, together with accrued and
unpaid interest, on the Scheduled Maturity Date is limited to the extent that
sufficient net proceeds have been raised through the sale of Qualifying Capital
Securities on the Debentures pursuant to this Section 1.5 on any date prior to
the Final Repayment Date is subject to (A) its obligations under Section 13.1
of the Original Indenture to the Holders of Senior Debt and (B) its obligations
under Section 1.8 with respect to the payment of deferred interest on the
Debentures.

(a)                                  Until the Debentures
are paid in full, the Corporation shall use Commercially Reasonable Efforts (as
defined in clause (b) below), subject to a Market Disruption Event (as defined
in clause (d) below):

(1)   to raise sufficient net
proceeds from the issuance of Qualifying Capital Securities during a 180-day
period ending on a date, not more than 30 and not less than 10 Business Days
prior to the Scheduled Maturity Date, on which the Corporation delivers the
notice required to permit repayment of the Debentures in full on the Scheduled
Maturity Date in accordance with the Replacement Capital Covenant; and

(2)   if the Corporation is unable
for any reason to raise sufficient proceeds from the issuance of Qualifying
Capital Securities to permit repayment in full of the Debentures on the
Scheduled Maturity Date or any subsequent Monthly Interest Payment Date (as
defined in Section 1.6 of this Second Supplemental Indenture), to raise
sufficient net proceeds from the issuance of Qualifying Capital Securities during
a 30-day period ending on the date, not more than 15 and not less than 10
Business Days prior to the following Monthly Interest Payment Date, on which
the Corporation delivers the notice required to permit repayment of the
Debentures in full on such following Monthly Interest Payment Date; and the
Corporation shall apply any such net proceeds to the repayment of the
Debentures subject to clause (e) below.

 4
 

 

(b)                                 For purposes of this
Section 1.5, “Commercially Reasonable Efforts” to sell Qualifying Capital Securities
means commercially reasonable efforts to complete the offer and sale of
Qualifying Capital Securities to Persons other than Subsidiaries in public
offerings or private placements.  The
Corporation shall not be considered to have made Commercially Reasonable
Efforts to effect a sale of Qualifying Capital Securities if it determines not
to pursue or complete such sale due to pricing, coupon, dividend rate or
dilution considerations.

(c)                                  Net proceeds of the
issuance of any Qualifying Capital Securities that the Corporation is permitted
to apply to repayment of the Debentures on any Interest Payment Date (as
defined in Section 1.6 of this Second Supplemental Indenture) will be applied,
first, to pay deferred interest to the extent of Eligible Proceeds raised
pursuant to Section 1.9, second, to pay current interest to the extent not paid
from other sources and, third, to repay the principal of Debentures; provided
that if the Corporation is obligated to sell Qualifying Capital Securities and
apply the net proceeds to payments of principal of or interest on any
outstanding securities in addition to the Debentures, then on any date and for
any period the amount of net proceeds received by the Corporation from those
sales and available for such payments shall be applied to the Debentures and
those other securities having the same Scheduled Maturity Date as the
Debentures pro rata in accordance with their respective outstanding principal
amounts and none of such net proceeds shall be applied to any other securities
having a later Scheduled Maturity Date until the principal of and all accrued
and unpaid interest on the Debentures has been paid in full.  If the Corporation raises less than $5
million of net proceeds from the sale of Qualifying Capital Securities during
the relevant 180-day, 90-day or 30-day period, as the case may be, it will not
be required to repay any Debentures on the Scheduled Maturity Date or the next
Interest Payment Date, as applicable, but it will use those net proceeds as
provided in the preceding sentence to repay the Debentures on the next Interest
Payment Date as of which it has raised at least $5 million of net proceeds.

(d)                                 “Market Disruption
Event” means the occurrence or existence of any of the following events or sets
of circumstances:

(1)   trading in securities
generally (of the Corporation’s common stock, $1 par value (the “Common Stock”)
or the preferred stock, no par authorized (the “Preferred Stock”)
specifically), on the New York Stock Exchange or any other national securities
exchange, or in the over-the-counter market, on which the Common Stock and/or
the Preferred Stock is then listed or traded shall have been suspended or its
settlement generally shall have been materially disrupted or minimum prices
shall have been established on any such exchange or market by the relevant
exchange or by any other regulatory body or governmental agency having
jurisdiction, and such suspension, disruption or the establishment of such
minimum price 

 5
 

materially disrupts or otherwise has a material adverse effect on
trading in, or the issuance and sale of Qualifying Capital Securities or APM
qualifying securities (as defined below);

(2)   the Corporation is required
to obtain the consent or approval of a regulatory body (including any
securities exchange) or governmental authority to issue or sell APM qualifying
securities pursuant to the alternative payment mechanism or to issue Qualifying
Capital Securities pursuant to the Corporation’s repayment obligations as the
case may be, and that consent or approval has not yet been obtained
notwithstanding the Corporation’s commercially reasonable efforts to obtain
that consent or approval;

(3)   a banking moratorium shall
have been declared by the federal or state authorities of the United States and
such moratorium materially disrupts or otherwise has a material adverse effect
on trading in, or the issuance and sale of, the Corporation’s Qualifying
Capital Securities or APM qualifying securities;

(4)   a material disruption shall
have occurred in commercial banking or securities settlement or clearance
services in the United States and such disruption materially disrupts or
otherwise has a material adverse effect on trading in, or the issuance and sale
of, the Corporation’s Qualifying Capital Securities or APM qualifying
securities;

(5)   the United States shall have
become engaged in hostilities, there shall have been an escalation in
hostilities involving the United States, there shall have been a declaration of
a national emergency or war by the United States or there shall have occurred
any other national or international calamity or crisis and such event
materially disrupts or otherwise has a material adverse effect on trading in,
or the issuance and sale of, the Corporation’s Qualifying Capital Securities or
APM qualifying securities;

(6)   there shall have occurred
such a material adverse change in general domestic or international economic,
political or financial conditions, including as a result of terrorist
activities, and such change materially disrupts or otherwise has a material
adverse effect on trading in, or the issuance and sale of, the Corporation’s
Qualifying Capital Securities or APM qualifying securities;

(7)   an event occurs and is continuing as a result
of which the offering document for the offer and sale of Qualifying Capital
Securities or APM qualifying securities (as such term is defined in Section
1.9(c) of this Second Supplemental Indenture), as the case may be, would, in
the Corporation’s reasonable judgment, contain an untrue statement of a
material fact or omit to state a material fact required to be stated in that
offering document or necessary to make the statements in that offering 

 6
 

document not
misleading and either (a) the disclosure of that event at such time, in the
Corporation’s reasonable judgment, is not otherwise required by law and would
have a material adverse effect on the Corporation’s business or (b) the
disclosure relates to a previously undisclosed proposed or pending material
business transaction, the disclosure of which would impede the Corporation’s
ability to consummate that transaction, provided that no single suspension
period described herein shall exceed 90 consecutive days and multiple
suspension periods shall not exceed an aggregate of 180 days in any 360-day period;
or

(8)   the Corporation reasonably believes that the
offering document for the offer and the sale of Qualifying Capital Securities
or APM qualifying securities, as the case may be, would not be in compliance
with a rule or regulation of the Securities Exchange Commission (for reasons
other than those described in Section 1.5(d)(7) of this Second Supplemental
Indenture) and the Corporation is unable to comply with such rule or regulation
or such compliance is unduly burdensome, provided that no single suspension
period described herein shall exceed 90 consecutive days and multiple
suspension periods shall not exceed an aggregate of 180 days in any 360-day
period.

The Corporation shall include a statement in the
notice of redemption on the Scheduled Maturity Date that it will perform its
obligations under this Section 1.5 to issue Qualifying Capital Securities to
raise net proceeds sufficient to permit repayment of the Debentures in full on
the Scheduled Maturity Date, and certify that it will continue to perform its
obligations under Section 1.5 to issue Qualifying Capital Securities to redeem
the Debentures in full.  The Trustee
shall be entitled to rely on such written notices and certifications without
requiring any additional due diligence or investigation into the performance by
the Corporation of its obligations under this Section 1.5.

1.6    Interest — the
Debentures.  The Debentures will bear
interest at an annual rate of (i) Three-Month LIBOR (as defined below) plus
1.00% from and including April 30, 2007 to but excluding June 15, 2047 and (ii)
One-Month LIBOR (as defined below) plus 1.99% thereafter.  The Corporation will pay interest quarterly
in arrears on March 15, June 15, September 15 and December 15 of each year,
beginning on September 15, 2007 until June 15, 2047, or if any such day is not
a Business Day, on the next Business Day (each such date, a “Quarterly Interest
Payment Date”), and thereafter monthly in arrears on the 15th day of each
month, or if any such day in not a Business Day, on the next Business Day (each
such date, a “Monthly Interest Payment Date,” and in conjunction with a
Quarterly Interest Payment Date, each an “Interest Payment Date”) (subject to
deferral as set forth in Exhibit A attached hereto).

(a)                                  “Three-Month
LIBOR” or “One-Month LIBOR” means, with respect to any quarterly or monthly
interest period, the rate (expressed as a percentage per annum) for deposits in
U.S. dollars for a three or one-month period, as applicable, commencing on the
first day of that quarterly or monthly interest period that appears on the
Reuters Screen LIBOR01 

 7
 

Page (the display designated on the Reuters Screen LIBOR01 Page or such
other page as may replace Reuters Screen LIBOR01 Page on the service or such
other service as may be nominated by the British Bankers’ Association for the
purpose of displaying London interbank offered rates for U.S. Dollar
deposits) (the “Reuters Screen LIBOR01 Page”) as of 11:00 a.m. (London time) on
the second London Banking Day immediately preceding the first day of the
relevant quarterly or monthly interest period (the “LIBOR Determination Date”).  If such rate does not appear on Reuters
Screen LIBOR01 Page, three or one-month LIBOR will be determined on the basis
of the rates at which deposits in U.S. dollars for a three or one-month period
commencing on the first day of that quarterly or monthly interest period, as
applicable, and in a principal amount of not less than $1,000,000 are offered
to prime banks in the London interbank market by four major banks in the London
interbank market selected by the Calculation Agent (after consultation with the
Corporation), at approximately 11:00 a.m., London time, on the LIBOR
Determination Date for that quarterly or monthly interest period.  The Calculation Agent (the Trustee, or any
other firm appointed by the Corporation, acting as Calculation Agent) (the “Calculation
Agent”) will request the principal London office of each of such banks to
provide a quotation of its rate.  If at
least two such quotations are provided, Three-Month or One-Month LIBOR with
respect to that quarterly or monthly interest period, as applicable, will be
the arithmetic mean (rounded upward if necessary to the nearest whole multiple
of 0.00001%) of such quotations.  If
fewer than two quotations are provided, Three-Month or One-Month LIBOR with
respect to that quarterly or monthly interest period, as applicable, will be
the arithmetic mean (rounded upward if necessary to the nearest whole multiple
of 0.00001%) of the rates quoted by three major banks in New York City selected
by the Calculation Agent, at approximately 11:00 a.m., New York City time, on
the first day of that quarterly or monthly interest period, as applicable, for
loans in U.S. dollars to leading European banks for a three or one-month
period, as applicable, commencing on the first day of that quarterly or monthly
interest period, as applicable, and in a principal amount of not less than
$1,000,000.  However, if fewer than three
banks selected by the Calculation Agent to provide quotations are quoting as
described above, Three-Month or One-Month LIBOR for that quarterly or monthly
interest period, as applicable, will be the same as Three-Month or One-Month
LIBOR as determined for the previous interest period.  The establishment of Three-Month or One-Month
LIBOR for each quarterly or monthly interest period, as applicable, by the
Calculation Agent shall (in the absence of manifest error) be final and
binding.

(b)                                 “London Banking Day” is any day on which
dealings in deposits in U.S. dollars are transacted in the London interbank
market.

 8
 

(c)                                  Accrued interest that
is not paid on the applicable interest payment date (after giving effect to the
adjustment for non-Business Days described above) will bear Additional
Interest, to the extent permitted by law, at the same annual rate, from the
relevant interest payment date, compounded on each subsequent interest payment
date. The terms “interest” and “deferred interest” refer not only to
regularly scheduled interest payments but also to interest on interest payments
not paid on the applicable interest payment date (i.e., compounded interest).

(d)                                 The floating interest
rate for any quarterly or monthly
interest period (the “Floating Interest Rate”) will at no time be higher
than the maximum rate then permitted by New York law as the same may be
modified by United States law.

(e)                                  The Calculation Agent
shall, as soon as practicable after 11:00 a.m., London time, on each LIBOR
Determination Date, determine Three-Month LIBOR or One-Month LIBOR, as applicable,
and inform the Trustee (in the event the Trustee is not acting as Calculation
Agent). Unless otherwise provided by the Trustee, the Paying Agent will
calculate the amount of interest payable in respect of the applicable one-month
or three month interest period (the “Interest Period”) on the Debentures (the “Floating
Interest Amount”). The Floating Interest Amount shall be calculated by applying
the Floating Interest Rate to the principal amount of each Debenture
outstanding at the commencement of the Interest Period, multiplying each such
principal amount by the actual number of days in the Interest Period concerned
(which actual number of days shall include the first day but exclude the last
day of such Interest Period) divided by 360 and rounding the resulting figure
to the nearest cent (with one-half cent or more being rounded upwards).
The determination of the Floating Interest Rate by the Calculation Agent and
the Floating Interest Amount by the Paying Agent will (in the absence of
willful default, bad faith or manifest error) be final, conclusive and binding
on all concerned. None of the Trustee, the Paying Agent, the Calculation Agent,
the Trust or the Corporation (or any of their respective officers, directors,
agents, beneficiaries, employees or affiliates) shall have any liability to any
Person for (i) the selection of any reference bank or (ii) any inability to
retain major banks in the London interbank market, in the case of the
Calculation Agent, which is caused by circumstances beyond its reasonable
control.

(f)                                    Upon
the request of a Holder of a Debenture, the Calculation Agent will provide the
Floating Interest Rate then in effect and, if determined, the Floating Interest
Rate for the next Interest Period with respect to the Debentures. Each such
Floating Interest Rate may be obtained by telephoning the Calculation Agent.

 9

 

1.7  Interest — General.  Interest will include Additional Sums, if
any, as provided in Section 10.6 of the Original Indenture until the principal
hereof is paid or duly provided for or made available for payment; provided
that any overdue principal, premium or Additional Sums and any overdue
installment of interest shall bear Additional Interest at the Floating Interest
Rate (to the extent that the payment of such interest shall be legally
enforceable), compounded quarterly, from the dates such amounts are due until
they are paid or made available for payment, and such interest shall be payable
on demand.

All percentages resulting from any calculations
referred to in this Second Supplemental Indenture will be rounded, if
necessary, to the nearest one ten-thousandth of a percentage point, with
five hundred-thousandths of a percentage point being rounded upwards
(e.g., 6.87655% (or .0687655) would be rounded to 6.8766% (or .068766)), and
all U.S. dollar amounts used in or resulting from such calculations will be
rounded to the nearest cent (with one-half cent or more being rounded
upwards).

The initial Interest Period will begin April 30, 2007
and will end on but exclude September 17, 2007, and each successive Interest
Period will begin on and include the prior Interest Payment Date and end on but
exclude the next Interest Payment Date. 
The interest payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Original Indenture, be paid to
the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such
interest installment, which shall be the fifteenth day (whether or not a
Business Day) next preceding such Interest Payment Date, except as provided
below.  In the event that the Debentures
are in book-entry only form, the Regular Record Date for each Interest Payment
Date shall be the Business Day next preceding such Interest Payment Date.  Any such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in the Indenture.

1.8  Deferral of Interest Payments.  The Corporation shall have the right,
pursuant to Section 3.12 of the Original Indenture, to defer the payment of
interest on the Debentures on the terms set forth in Exhibit A attached
hereto.

1.9  Alternative Payment Mechanism.  Immediately following any APM Commencement
Date (as defined below) and until the termination of the related deferral
period, the Corporation shall, unless after notice to the Federal Reserve and
except to the extent that the Federal Reserve shall have disapproved, issue APM
qualifying securities (as defined below) until the Corporation has raised an
amount of Eligible Proceeds (as defined below) at least equal to the aggregate
and unpaid amount of deferred interest on 

 10
 

the Debentures (including Additional Interest
thereon) and applied such Eligible Proceeds on the next Interest Payment Date
to the payment of deferred interest (including Additional Interest thereon);
provided that:

(a)                                  the
foregoing obligations shall not apply to the extent that with respect to
deferred interest attributable to the first five years of any deferral period
(including Additional Interest thereon), (i) the net proceeds of any issuance
of Common Stock (or if the Corporation has amended the definition of “APM
qualifying securities” to eliminate Common Stock, Qualifying Warrants (as
defined below)) applied during such deferral period to pay interest on the
Debentures pursuant to this Section 1.9, together with the net proceeds of all
prior issuances of Common Stock and Qualifying Warrants so applied, would
exceed an amount equal to 2% of the product of the average of the Current Stock
Market Prices (as defined below) of the Common Stock on the 10 consecutive
Trading Days (as defined below) ending on the second Trading Day immediately
preceding the date of issuance multiplied by the total number of issued and
outstanding shares of Common Stock as of the date of the Corporation’s then
most recent publicly available consolidated financial statements (the “Common
Stock Issuance Cap”), (ii) the net proceeds of any issuance of Qualifying
Preferred Stock (as defined below) applied to pay interest on the Debentures
pursuant to this Section 1.9, together with the net proceeds of all prior
issuances of Qualifying Preferred Stock applied during the current and all
prior deferral periods, would exceed 25% of the aggregate principal amount of
the Debentures initially issued under the Second Supplemental Indenture (the “Preferred
Stock Issuance Cap”), and (iii) so long as the definition of “APM qualifying
securities” has not been amended to eliminate Common Stock, the sale of
Qualifying Warrants to pay deferred interest is an option that may be exercised
at the Corporation’s sole discretion, and the Corporation will not be obligated
to sell Qualifying Warrants or to apply the proceeds of any such sale to pay
deferred interest on the Debentures, and no class of investors in the
Corporation’s securities, or any other party, may require the Corporation to
issue Qualifying Warrants; provided that the Common Stock Issuance Cap will
cease to apply after the ninth anniversary of the commencement of any deferral
period, at which point the Corporation must pay any deferred interest, using
the Alternative Payment Mechanism, subject to any Maximum Share Number (as
defined below), Market Disruption Event or any Supervisory Event (as defined
below).  The Maximum Share Number (as
defined below); and provided, further, that if the Common Stock Issuance Cap is
reached during a deferral period and the Corporation subsequently repays all deferred
interest, the Common Stock Issuance Cap will cease to apply at the termination
of such deferral period and will not apply again unless and until the
Corporation starts a new deferral period.

 11
 

(b)                                 the
Corporation shall not be permitted to sell more than 15 million shares of
Common Stock (such number, as it may be adjusted from time to time, the “Maximum
Share Number”) for purposes of paying deferred interest on the Debentures;
provided that if the issued and outstanding shares of Common Stock shall have
been changed into a different number of shares or a different class by reason
of any stock split, reverse stock split, stock dividend, reclassification,
recapitalization, split-up, combination, exchange of shares or other similar
transaction, then the Maximum Share Number shall be correspondingly adjusted;
and provided, further, that the Corporation may, at its discretion and without
the consent of the Holders of the Debentures, increase the Maximum Share Number
(including through the increase of the Corporation’s authorized share capital,
if necessary) if the Corporation determines that such increase is necessary to
allow the Corporation to issue sufficient shares to pay deferred interest on
the Debentures.

(c)                                  “APM
Commencement Date” means, with respect to any deferral period, the earlier of
(i) the first Interest Payment Date following the commencement of such deferral
period on which the Corporation pays any current interest on the Debentures and
(ii) the fifth anniversary of the commencement of such deferral period.

(d)                                 “APM
Period” means, with respect to any deferral period, the period commencing on
the APM Commencement Date and ending on the next Interest Payment Date on which
the Corporation has raised an amount of Eligible Proceeds at least equal to the
aggregate amount of accrued and unpaid deferred interest, including Additional
Interest, on the Debentures.

(e)                                  “APM
qualifying securities” means Common Stock, Qualifying Preferred Stock and
Qualifying Warrants; provided that the Corporation may, without the consent of
the Holders of the Capital Securities or the Debentures, amend the definition
of “APM qualifying securities” to eliminate Common Stock or Qualifying Warrants
(but not both) from the definition if the Corporation has been advised in writing
by a nationally recognized independent accounting firm that there is more than
an insubstantial risk that the failure to do so would result in a reduction in
the Corporation’s earnings per share as calculated for financial reporting
purposes; the Corporation will  promptly
notify the Holders of the Debentures, and the Trustee will promptly notify the
Holders of the Capital Securities of such change.

(f)                                    “Current
Stock Market Price” of the Common Stock on any date shall mean (i) the closing
sale price per share (or if no closing sale price is reported, the average of
the bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on that date as reported in composite
transactions by the New York Stock Exchange or, if the Common Stock is not then
listed on the New York 

 12
 

Stock
Exchange, as reported by the principal U.S. securities exchange on which the
Common Stock is traded or quoted, (ii) if the Common Stock is not either listed
on any U.S. securities exchange or quoted on the relevant date, the last quoted
bid price for the Common Stock in the over-the-counter market on the relevant
date as reported by the National Quotation Bureau or similar organization, or
(iii) if the Common Stock is not so quoted, the average of the mid-point of the
last bid and ask prices for the Common Stock on the relevant date from each of
at least three nationally recognized independent investment banking firms
selected by the Corporation for this purpose.

(g)                                 “Eligible
Proceeds” means, with respect to each relevant Interest Payment Date, the net
proceeds (after underwriters’ or placement agents’ fees, commissions or
discounts and other expenses relating to the issuance or sale) the Corporation
has received during the 180-day period prior to such Interest Payment Date from
the issuance or sale of APM qualifying securities (excluding sales of Common
Stock in excess of the Maximum Share Number or Preferred Stock up to the
Preferred Stock Issuance Cap) to Persons that are not Subsidiaries.

(h)                                 “Qualifying
Preferred Stock” means non-cumulative perpetual preferred stock of the
Corporation that (a) ranks pari passu
with or junior to all other Preferred Stock of the Corporation, and
(b) either (x) is subject to a Qualifying Replacement Capital
Covenant or (y) is subject to Intent-Based Replacement Disclosure, as
defined in the Replacement Capital Covenant, and has a provision that prohibits
the Corporation from paying any dividends thereon upon its failure to satisfy
one or more financial tests set forth therein, and (c) as to which the
transaction documents provide for no remedies as a consequence of non-payment
of dividends other than permitted remedies, as defined in the Replacement
Capital Covenant.

(i)                                     “Qualifying
Replacement Capital Covenant” means a replacement capital covenant that
is substantially similar to the Replacement Capital Covenant attached hereto as
Exhibit B, as identified by the Corporation’s Board of Directors acting
in good faith and in its reasonable discretion and reasonably construing the
definitions and other terms of such Replacement Capital Covenant,
(i) entered into by a company that at the time it enters into such
replacement capital covenant is a reporting company under the Exchange Act, and
(ii) that restricts the related issuer from redeeming, repaying or
purchasing identified securities except to the extent of the applicable
percentage of the net proceeds from the issuance of specified replacement
capital securities that have terms and provisions at the time of redemption,
repayment or purchase that are as or more equity-like than the securities then
being redeemed, repaid or purchased within the 180-day period prior to the
applicable redemption, repayment or purchase date.

 13
 

(j)                                     “Qualifying
Warrants” means any net share settled warrants to purchase Common Stock that
(1) have an exercise price greater than the Current Stock Market Price of the
Common Stock as of the date the Corporation agrees to issue the warrants, and
(2) the Corporation is not entitled to redeem for cash and the Holders of which
are not entitled to require the Corporation to repurchase for cash in any
circumstances. Qualifying Warrants will be issued in accordance with the
Alternative Payment Mechanism and will have exercise prices at least 10% above
the Current Stock Market Price of the Common Stock on the date of issuance.

(k)                                  “Supervisory
Event” means an event that shall commence upon the date the Corporation has
notified the Federal Reserve of its intention and affirmatively requested Federal
Reserve approval both (1) to sell APM qualifying securities and (2) to apply
the net proceeds of such sale to pay deferred interest on the Debentures, and
the Corporation has been notified that the Federal Reserve disapproves of
either action mentioned in that notice. A Supervisory Event shall cease on the
Business Day following the earlier to occur of (a) the tenth anniversary of the
commencement of any deferral period, or (b) the day on which the Federal
Reserve notifies the Corporation in writing that it no longer disapproves of
the Corporation’s intention to both (i) issue or sell APM qualifying securities
and (ii) apply the net proceeds from such sale to pay deferred interest on the
Debentures. The occurrence and continuation of a Supervisory Event will excuse
the Corporation from its obligation to sell APM qualifying securities and to
apply the net proceeds of such sale to pay deferred interest on the Debentures
and will permit the Corporation to pay deferred interest using cash from any
other source without breaching its obligations under the Second Supplemental
Indenture. Because a Supervisory Event will exist if the Federal Reserve
disapproves of either of these requests, the Federal Reserve will be able,
without triggering a default under the Original Indenture, to permit the
Corporation to sell APM qualifying securities but to prohibit the Corporation
from applying the proceeds to pay deferred interest on the Debentures.

(l)                                     “Trading
Day” means a day on which the Common Stock is traded on the New York Stock
Exchange, or if not then listed on the New York Stock Exchange, a day on which
the Common Stock is traded or quoted on the principal U.S. securities exchange
on which it is listed or quoted, or if not then listed or quoted on a U.S.
securities exchange, a day on which the Common Stock is quoted in the
over-the-counter market.

(m)                               “Business Day” means any London business day
other than any Saturday, Sunday or other day on which banking institutions in
New York, New York, Boston, Massachusetts or Wilmington, Delaware are
authorized or required by law or executive order to remain closed.

 14
 

(n)                                 “London business day” is any day on which
dealings in deposits in U.S. dollars are transacted in the London interbank
market.

(o)                                 For
the avoidance of doubt, once the Corporation reaches the Common Stock Issuance
Cap for a deferral period, the Corporation shall not be required to issue more
Common Stock (or if the Corporation has amended the definition of “APM
qualifying securities” to eliminate Common Stock, Qualifying Warrants) with
respect to deferred interest attributable to the first five years of such
deferral period (including Additional Interest thereon) pursuant to this
Section 1.9 even if the amount referred to in clause (a) of this Section 1.9
subsequently increases because of a subsequent increase in the sale price of
Common Stock or the number of outstanding shares of Common Stock.

The Corporation shall provide written notice to the
Trustee following the occurrence of an APM Commencement Date and certify that
it will perform its obligations as required under this Section 1.9.  The Corporation shall also provide written
certification to the Trustee at least 5 Business Days prior to each subsequent
Interest Payment Date during the APM Period specifying the amount of Eligible
Proceeds to be paid to the Trustee and applied to pay deferred interest
(including Additional Interest thereon), specifying the application of such
Eligible Proceeds to current interest and deferred interest (including
Additional Interest thereon) and the amount of current interest and deferred
interest (including Additional Interest thereon) remaining outstanding as of
such Interest Payment Date.  The Trustee
shall be allowed to rely on such notices and certifications without requiring
any additional due diligence or investigation into the performance of the
Corporation of its obligation under this Section 1.9.

The Corporation will be excused from its obligations
under the Alternative Payment Mechanism in respect of any Interest Payment Date
if the Corporation provides written certification to the Trustee (which the
Trustee will promptly forward upon receipt to each Holder of record of the
applicable series of Capital Securities) no more than 15 and no less than 10
Business Days in advance of that interest payment date certifying that:

a)     a Market Disruption Event or Supervisory
Event was existing after the immediately preceding Interest Payment Date; and

b)    either (a) the Market Disruption Event or
Supervisory Event continued for the entire period from the Business Day
immediately following the preceding Interest Payment Date to the Business Day
immediately preceding the date on which that certification is provided, (b) the
Market Disruption Event or Supervisory Event continued for only part of this
period, but the Corporation was unable to raise sufficient eligible proceeds
during the rest of that period to pay all accrued and unpaid interest, or (c)
the Supervisory Event prevents the Corporation from 

 15
 

applying the
net proceeds of sales of APM qualifying securities to pay deferred interest on
such interest payment date.

 The Corporation
will not be excused from its obligations under the Alternative Payment
Mechanism if it determines not to pursue or complete the sale of APM qualifying
securities due to pricing, dividend rate or dilution considerations.

1.10  Redemption.  The Corporation has the right to redeem the Debentures at any time on
or after June 15, 2012, at 100% of the principal amount, plus accrued and
unpaid interest through the date of redemption.

1.11  Conditional Right to
Redeem Debentures upon a Capital Treatment Event, Investment Company Event, Tax
Event, or Rating Agency Event.  The Corporation may elect to redeem all, but
not less than all, of the Debentures at 100% of their principal amount, plus
accrued and unpaid interest through the date of redemption at any time within
90 days of a Tax Event, Rating Agency Event, Capital Treatment Event or
Investment Company Event (as defined in Section 1.12 of this Second Supplement
Indenture).  Except as set forth in the
preceding sentence the Corporation may not redeem the Securities prior to June
15, 2012.

1.12  Definition of Capital
Treatment Event, Investment Company Event, Tax Event, and Rating Agency Event.
Solely for purposes of the Debentures, the definition of “Capital Treatment
Event,” “Investment Company Event,” and “Tax Event,” in Section 1.1 of the
Original Indenture shall not apply, and the following definitions shall instead
be applicable:

(a)                                  “Capital Treatment
Event” means the reasonable determination by the Corporation (as evidenced by
an Officers’ Certificate delivered to the Trustee) that, as a result of any
amendment to, or change (including any proposed change) in, the laws (or any
regulations thereunder) of the United States or any political subdivision
thereof or therein that is enacted or becomes effective after the date hereof,
or as a result of any official or administrative pronouncement, action or
judicial decision interpreting or applying such laws or regulations, which
amendment or change is effective or which proposed change, pronouncement,
action or decision is announced after the hereof, there is more than an
insubstantial risk that the Corporation will not be entitled to treat an amount
equal to the aggregate Liquidation Amount (as such term is defined in the
Amended and Restated Trust Agreement (as defined in Section 1.15 of this Second Supplement Indenture)) of
the Capital Securities (or any substantial portion thereof) as “Tier 1 Capital”
(or the then equivalent thereof) for purposes of the capital adequacy
guidelines of the Board of Governors of the Federal Reserve System, as then in
effect and applicable to the Corporation.

(b)                                 “Investment Company
Event” means with respect to the Debentures, the receipt by the Corporation and
the Trust of an opinion of counsel experienced in matters relating to
investment companies to the effect that, 

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as a result of any change in law or regulation; or change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority;  there is a more than insubstantial risk that
the Trust is or 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 on or after the date hereof.

(c)                                  “Tax Event” means,
with respect to the Debentures, that the Corporation has requested and received
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 regulations of the United States or any political
subdivision or taxing authority of or in the United States that is enacted or
becomes effective after the date hereof; proposed change in those laws or
regulations that is announced after the date hereof; official administrative
decision or judicial decision or administrative action or other official
pronouncement interpreting or applying those laws or regulations that is
announced after the date hereof; or threatened challenge asserted in connection
with an audit of the Corporation, the Trust or the Corporation’s subsidiaries,
or a threatened challenge asserted in writing against any other taxpayer that
has raised capital through the issuance of securities that are substantially
similar to the Debentures; there is more than an insubstantial risk that the
Trust is, or will be, subject to U.S. federal income tax with respect to income
received or accrued on the Debentures; interest payable by the Corporation on
the Debentures is not, or will not be, deductible by the Corporation, in whole
or in part, for U.S. federal income tax purposes; or the Trust is, or will be,
subject to more than a de minimis amount of other taxes, duties or other
governmental charges.

(d)                                 “Rating Agency Event”
means, with respect to the Debentures, a change in the methodology employed by
any nationally recognized statistical rating organization within the meaning of
Rule 15c3-1 under the Exchange Act that currently publishes a rating for the
Corporation or any of its subsidiaries (a “rating agency”) in assigning equity
credit to securities such as the Debentures, as such methodology is in effect
on the date of this Second Supplemental Indenture (the “current criteria”),
which change results in a lower equity credit being assigned by such rating
agency to the Debentures as of the date of such change than the equity credit
that would have been assigned to the Debentures as of the date of such change
by such rating agency pursuant to its current criteria.

1.13  Replacement Capital
Covenant.  The Corporation shall not
amend the Replacement Capital Covenant to impose additional restrictions on the
type or amount of Qualifying Capital Securities for purposes of determining the
extent to which repayment, redemption or repurchase of the Debentures or
Capital Securities is permitted, except with the consent of the Holders of a
majority by liquidation amount of the Capital 

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Securities or,
if the Debentures have been distributed by the Trust, the Holders of a majority
by principal amount of the Debentures. 
Except as aforesaid, the Corporation may amend or supplement the
Replacement Capital Covenant in accordance with its terms and without the
consent of the Holders of the Capital Securities or the Debentures.

1.14  Limitation on Claims in the Event of
Bankruptcy, Insolvency or Receivership. 
Each Holder, by such Holder’s acceptance of the Debentures, will agree
that if an event of bankruptcy, insolvency, or receivership, as set forth in
the Original Indenture, shall occur prior to the redemption or repayment of the
Debentures, such Holder shall have no claim for, and thus no right to receive,
any interest deferred pursuant to Section 1.8 (including Additional Interest
thereon) that has not been paid pursuant to Section 1.9 to the extent the
amount of such interest exceeds two years of accumulated and unpaid interest
(including Additional Interest thereon) on such Holder’s Debentures.  Any such claim will be subject to applicable
law.

1.15  State Street Capital Trust IV.  The forms of (a) the Amended and Restated
Trust Agreement (the “Amended and Restated Trust Agreement”) among the
Corporation, U.S.
Bank National Association, as Property Trustee, U.S. Bank Trust National
Association, as Delaware Trustee, the Administrative Trustees named therein and
the Holders of Trust Securities (as defined therein) and (b) the Guarantee
Agreement, dated as of April 30, 2007 (the “Guarantee”) between the Corporation
and U.S. Bank National Association,
as Guarantee Trustee, relating to the Trust are attached hereto as Exhibit C
and Exhibit D, respectively.

1.16  Global Securities.  If the Debentures are distributed to Holders
of Capital Securities in connection with the involuntary or voluntary
dissolution, winding-up or liquidation of the Trust, the Debentures will be
issued in the form of one or more Global Securities registered in the name of
The Depository Trust Company (“DTC”) or its nominee and will be subject to the
relevant provisions of the Original Indenture, including without limitation
Section 3.5 thereof.

1.17  Definition of Senior Debt. Solely for
purposes of the Debentures, the definition of “Senior Debt” shall be the
principal of and premium and interest, if any, including interest accruing on
or after the filing of any petition in bankruptcy or for reorganization
relating to the Corporation whether or not such claim for post-petition
interest is allowed in such proceeding, on Debt, whether incurred on or prior
to the date of this Second Supplemental Indenture or thereafter incurred,
unless, in the instrument creating or evidencing the same or pursuant to which
the same is outstanding, it is provided that such obligations are not superior
in right of payment to the Debentures or to other Debt that is pari passu or subordinated to the Debentures, other than:

(a)                                  any Debt of the Corporation which when
incurred and without respect to any election under Section 1111(b) of
the United States Bankruptcy Code, as amended, was without recourse to the
Corporation;

(b)                                 any Debt of the Corporation to any of its
subsidiaries;

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(c)                                  any Debt to any of the Corporation’s
employees;

(d)                                 any
other debt securities issued pursuant to this Second Supplemental Indenture.

(e)                                  trade accounts payable, accrued liabilities
arising in the ordinary course of business, or any future debt that by its
terms is not superior in right of payment to the Debentures.

  The Corporation’s obligations to make
payments on the Debentures and the Guarantee are subordinate to the Corporation’s
payment obligations under its Senior Debt. There is no limit on the amount of
indebtedness for money borrowed the Corporation may issue that ranks senior or pari passu to the Debentures upon our
liquidation or in right of payment as to principal or interest.

1.18  Representations and Warranties.  In connection with the issuance of the
Debentures, the Corporation hereby represents and warrants that as of the date
of this Second Supplemental Indenture, the Corporation is not obligated in
respect of any Debt for borrowed money from (i) any Subsidiary that is not a
bank or bank holding company as defined in the Bank Holding Company Act of
1956, as amended, or (ii) any employee of the Corporation, except, in each
case, (x) in respect of Debt on which the Corporation shall defer payments of
principal, interest and premium to the same extent that the Corporation defers
payments of interest on the Debentures; or (y) in the ordinary course of
business.

1.19  Additional Covenants.  Solely for purposes of the Debentures, the
following new Sections 10.9 and 10.10 of the Original Indenture shall be
applicable:

“Section 10.9         Indebtedness
to Certain Subsidiaries.

Except in the ordinary course of business, the
Corporation shall not incur Debt for borrowed money from any Subsidiary that is
not a bank or bank holding company as defined in the Bank Holding Company Act
of 1956, as amended, unless, pursuant to the terms of such Debt, the
Corporation defers payments of principal, interest and premium, if any, in
respect of such Debt to the same extent that the Corporation defers payments of
interest on the Debentures.

Section 10.10         Debt
to Employees.

Except in the ordinary course of business, the
Corporation shall not incur Debt for borrowed money from any employee of the
Corporation, unless, pursuant to the terms of such Debt, the Corporation defers
payments of principal, interest and premium, if any, in respect of such Debt to
the same extent that the Corporation defers payments of interest on the
Debentures.”

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1.20  Events
of Default.  Solely for purposes of
the Debentures, clause (3) of the definition of “Event of Default” set forth in
Section 5.1 of the Original Indenture shall be inapplicable.

The Corporation shall not enter into any agreement or
amendment to this Second Supplemental Indenture to add any additional event of
default to the definition of Event of Default without the consent of at least a
majority of the aggregate outstanding amount of Debentures.

1.21  Business Combinations.  If the Corporation engages in any merger,
consolidation, amalgamation or conveyance, transfer or lease of assets
substantially as any entirety to any other Person, where immediately after the
consummation of such transaction more than 50% of the voting stock of the
Person formed by such transaction, or the Person that is the surviving entity
of such transaction, or the Person to whom such properties and assets are
conveyed, transferred or leased in such transaction, is owned by the
shareholders of the other party to such transaction, then Section 1.9 shall not
apply to any Deferral Period that is terminated on the next Interest Payment
Date following the date of consummation of such transaction (or if later, at
any time within 90 days following the date of consummation of the business
combination).

1.22  Tax Treatment.

(a)                                  Each
Holder of a Debenture and each beneficial owner of a Debenture (including the
Trust and each holder of Capital Securities), by its acquisition of a Debenture
will agree to  treat the Debentures as indebtedness
for U.S. federal and state income tax purposes;

(b)                                 The
Corporation and the Trustee hereby agree to treat the Debentures as
indebtedness for U.S. federal and state income tax purposes.

ARTICLE II.

MISCELLANEOUS

2.1  Covenant as to the Trust.  In the event that the Debentures are issued
to the Trust or the Trustee of the Trust in connection with the issuance of
Capital Securities and Common Securities by the Trust, for so long as such
Capital Securities and/or Common Securities remain outstanding, the Corporation
will (a) maintain 100% direct or indirect ownership of the Common Securities; provided, however, that any successor of the Corporation,
permitted pursuant to Article VIII of the Original Indenture may succeed to the
Corporation’s ownership of such Common Securities, (b) use commercially
reasonable efforts to cause the Trust to remain a statutory trust, except in
connection with a distribution of Debentures to the holders of Capital
Securities and Common Securities of the Trust in liquidation of the Trust; (c)
not voluntarily terminate, wind-up or liquidate the Trust, except in connection
with (i) a distribution of the Debentures to the holders of 

 20
 

the Capital Securities and Common Securities
of the Trust in liquidation of the Trust, (ii) the redemption of all of the
Capital Securities and Common Securities issued by the Trust, (iii) in
connection with mergers, consolidations or amalgamations, in each case as
permitted by the Amended and Restated Trust Agreement; (d) use its reasonable
efforts, consistent with the terms and provisions of the Amended and Restated
Trust Agreement, to cause the Trust to remain classified as a grantor trust and
not as an association taxable as a corporation for United States federal income
tax purposes; and (e) use its reasonable efforts to ensure that the Trust will
not be an “investment company” for purposes of the Investment Company Act.

2.2  Additional Supplemental Indentures.  The Corporation shall not amend or modify the
Original Indenture and this Second Supplemental Indenture pursuant to Article
IX of the Original Indenture if such amendment or modification would cause the
Trust to be treated other than as a grantor trust for United States federal
income tax purposes.

2.3  Effect of Supplemental Indenture on
Original Indenture.  This Second
Supplemental Indenture is a supplement to the Original Indenture.  As supplemented by this Second Supplemental
Indenture, the Original Indenture is in all respects ratified, approved and
confirmed, and the Original Indenture and this Second Supplemental Indenture
shall together constitute one and the same instrument.

2.4  Effective Date.  The modifications to the Original Indenture
set forth in this Second Supplemental Indenture shall become effective on the
date first written above.

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

2.6  Recitals.  The recitals contained herein shall be taken
as the statements of the Corporation, and the Trustee assumes no responsibility
for their correctness.  The Trustee makes
no representations as to the validity or sufficiency of this Second
Supplemental Indenture. 

2.7  Governing Law.  This Second Supplemental Indenture shall be
governed by and construed in accordance with the laws of the jurisdiction that
govern the Original Indenture and its construction.

The remainder of this page has been intentionally
left blank.

 21

 

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

	
  

  	
  STATE STREET CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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  U.S. BANK NATIONAL
  ASSOCIATION, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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EXHIBIT A

STATE
STREET CORPORATION

Floating
Rate Junior Subordinated Debenture

 

 

No.
FL-1                                                                                                                       $800,010,000

 

STATE STREET CORPORATION,
a corporation organized and existing under the laws of The Commonwealth of
Massachusetts (hereinafter called the “Corporation”,
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to U.S. Bank National
Association, as Property Trustee for State Street Capital Trust IV, a statutory
trust formed under the laws of the State of Delaware, or registered assigns,
the principal sum of Eight Hundred Million, Ten Thousand Dollars
($800,010,000) on June 1,
2067, maturity date as may be extended. The Corporation further promises to pay
interest on said principal sum from April 30, 2007 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for,
quarterly at a variable annual rate
equal to Three-Month LIBOR, determined as described in the Indenture, plus
1.00% (subject to deferral as set forth herein) from and including April
30, 2007 to but excluding June 15, 2047 in arrears on the fifteenth day of
March, June, September and December commencing on September 15, 2007 (or, if
any such date is not a business day, on the next business day) (each a
“Quarterly Interest Payment Date”); and at an annual rate equal to One-Month LIBOR,
determined as described in the Indenture, plus 1.99% (subject to deferral as
set forth herein) from and
including July 15, 2047 (or if such day is not a business day, on the next
business day) (each a “Monthly Interest Payment Date” and collectively with the
Semi-Annual Interest Payment Date an “Interest Payment Date”).

 

Interest will include
Additional Sums, if any, as provided in Section 10.6 of the Indenture until the
principal hereof is paid or duly provided for or made available for payment; provided that any overdue principal,
premium or Additional Sums and any overdue installment of interest shall bear
Additional Interest at the Interest Rate (to the extent that the payment of
such interest shall be legally enforceable), compounded on each subsequent
Interest Payment Date, from the dates such amounts are due until they are paid
or made available for payment, and such interest shall be payable on demand.
The amount of interest payable for any period shall be computed by applying the
Interest Rate on the principal amount of this Security outstanding at the
commencement of the Interest Period, multiplying each such principal amount by
the actual number of days in the Interest Period concerned (which actual number
of days shall include the first day but exclude the last day of such Interest
Period) divided by 360 and rounding the resulting figure to the nearest cent
(with one-half cent or more being rounded upwards).  The initial Interest Period will begin April
30, 2007 and will end on but exclude September 17, 2007, and each successive
Interest Period will begin on and include the prior Interest Payment Date and
end on but exclude the next Interest Payment Date.  The interest 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 Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest installment, which shall be the fifteenth day
(whether or not a Business Day) next preceding such Interest Payment Date. Any
such interest not so punctually paid or duly provided for shall forthwith cease
to be payable to the Holder on such Regular Record Date and may either be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.

  
  
 

So long as no Event of
Default has occurred and is continuing, the Corporation shall have the right,
at any time during the term of this Security, from time to time to defer the
payment of interest on this Security for up to 40 consecutive quarterly
interest payment periods with respect to each deferral period (each an “Extension Period”) at the end of which
the Corporation shall pay all interest then accrued and unpaid including any
Additional Interest, as provided below; provided,
however, that no Extension Period shall extend beyond the Final
Repayment Date of the principal of this Security and no such Extension Period
may end on a date other than an Interest Payment Date; and provided, further, however, that during
any such Extension Period, the Corporation shall not, and shall not permit any
of its subsidiaries to, (i) make any payment of principal of or interest
or premium, if any, on or repay, repurchase or redeem any debt securities of
the Corporation that rank pari passu
in all respects with or junior in interest to this Security, or
(ii) declare or pay any dividends or distributions on, or redeem,
purchase, acquire or make a liquidation payment with respect to, any of the
Corporation’s capital stock (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Corporation in connection
with any employment contract, benefit plan or other similar arrangement with or
for the benefit of any one or more employees, officers, directors,  consultants or independent contractors, in
connection with a dividend reinvestment or stockholder stock purchase plan or
in connection with the issuance of capital stock of the Corporation (or securities
convertible into or exercisable for such capital stock) as consideration in an
acquisition transaction entered into prior to the applicable Extension Period,
(b) as a result of an exchange or conversion of any class or series of the
Corporation’s capital stock (or any capital stock of a Subsidiary of the
Corporation) for any class or series of the Corporation’s capital stock or of
any class or series of the Corporation’s indebtedness for any class or series
of the Corporation’s capital stock, (c) the purchase of fractional
interests in shares of the Corporation’s capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged, (d) any declaration of a dividend in connection with
any Rights Plan, or the issuance of rights, stock or other property under any
Rights Plan, or the redemption or repurchase of rights pursuant thereto, (e)
payments by the Corporation under its guarantee regarding the Issuer Trust
holding the Security, (f) 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, (g) payments during a deferral
period of current interest in respect of parity securities that are made pro
rata to the amounts due on such parity securities and on the Security and any
payments of deferred interest on parity securities that, if not made, would
cause the Corporation to breach the terms of the instrument governing such
parity securities, (h) payments of principal during a deferral period in
respect of parity securities having the same Scheduled Maturity Date as the Security,
as required under a provision of such parity securities that is made on a pro
rata basis among one or more series of parity securities having such a
provision and the Security) or (i) make any guarantee payments regarding any
guarantee by the Corporation of any junior subordinated debentures of any of
its subsidiaries if the guarantee ranks pari passu with
or junior in interest to the Security. Prior to the termination of any such
Extension Period, the Corporation may further defer the payment of interest, provided that no Extension Period shall
exceed 40 consecutive quarterly interest payment periods, extend beyond the
Final Redemption Date of the principal of this Security or end on a date other
than an Interest Payment Date. Upon the termination of any such Extension
Period and upon the payment of all accrued and unpaid interest and any
Additional Interest then due on any Interest Payment Date, the Corporation may
elect to begin a new Extension Period, subject to the above conditions. No
interest shall be due and payable during an Extension Period, except at the end
thereof, but each installment of interest that would otherwise have been due
and payable during such Extension shall bear Additional Interest (to the extent
that the payment of such interest shall be legally enforceable) at the Interest
Rate, compounded on each subsequent Interest Payment Date and calculated as set
forth in the first paragraph of this Security, from the dates on which amounts
would otherwise have been due and payable until paid or made available for
payment. The Corporation shall give the Holder of this Security and the Trustee
notice of its election to begin any Extension Period at least one Business Day
prior to the next succeeding Interest Payment Date on which interest on this 

  
  
 

 

Security would be payable but for such deferral or, so
long as such Securities are held by the Issuer Trust, at least one Business Day
prior to the earlier of (i) the next succeeding date on which
Distributions on the Capital Securities of such Issuer Trust would be payable
but for such deferral, and (ii) the date on which the Property Trustee of
such Issuer Trust is required to give notice to holders of such Capital
Securities of the record date or the date such Distributions are payable.

 

Payment of the
principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Corporation maintained for that purpose in New
York, New York, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Corporation
payment of interest may be made (i) by check mailed to the address of the
Person entitled thereto as such address shall appear in the Securities
Register, or (ii) by wire transfer in immediately available funds at such place
and to such account as may be designated by the Person entitled thereto as
specified by the Securities Register.

 

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

 

Reference is hereby made
to the further provisions of this Security set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set
forth at this place.

 

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

 

  
  
 

IN WITNESS WHEREOF, the
Corporation has caused this instrument to be duly executed under its corporate
seal.

 

Dated April 30, 2007

 

 

	
  

  	
  STATE STREET CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

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

 

 

	
  

  	
  U.S. BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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GLOBAL
FLOATING RATE DEBENTURE CERTIFICATE

[STATE STREET CAPITAL TRUST IV]

 

  
  
 

 

This Security is one of a
duly authorized issue of securities of the Corporation (herein called the “Securities”), issued and to be issued in
one or more series under the Junior Subordinated Indenture, dated as of
December 15, 1996, as supplemented by the Second Supplemental Indenture, dated
as of April 30, 2007 (as previously supplemented and amended, and as further
amended or supplemented, “Indenture”),
between the Corporation and U.S. Bank National Association, as Trustee (herein
called the “Trustee”, which term
includes any successor trustee under the Indenture), to which Indenture
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Corporation, the Trustee,
the holders of Senior Indebtedness and the Holders of the Securities, and of
the terms upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof, limited in
aggregate principal amount to $800,010,000.

 

All terms used in this
Security that are defined in the Indenture or in the Amended and Restated Trust
Agreement, dated as of April 30, 2007 (as modified, amended or supplemented
from time to time, the “Trust Agreement”),
relating to State Street Capital Trust IV (the “Issuer
Trust”), among the Corporation, as Depositor, the Trustees named
therein and the Holders from time to time of the Trust Securities issued
pursuant thereto, shall have the meanings assigned to them in the Indenture or
the Trust Agreement, as the case may be.

 

The Corporation has the
authority to redeem this Security at any time on or after June 15, 2012, at 100%
of the principal amount, plus accrued and unpaid interest through the date of
redemption.  In addition, the Corporation
may elect to redeem all, but not less than all, of the Securities at 100% of
their principal amount, plus accrued and unpaid interest through the date of
redemption prior to June 15, 2012, at any time within 90 days of a Tax Event,
Rating Agency Event, Capital Treatment Event or Investment Company Event.  Except as set forth in the preceding sentence
the Corporation may not redeem the Securities prior to June 15, 2012.

 

No sinking fund is
provided for the Securities.

 

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

 

The Indenture contains
provisions for satisfaction and discharge of the entire indebtedness of this
Security upon compliance by the Corporation with certain conditions set forth
in the Indenture.

 

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

 

As provided in and
subject to the provisions of the Indenture, if an Event of Default with respect
to the Securities of this series at the time Outstanding occurs and is
continuing, then and in every such 

 

  
  
 

 

case
the Trustee or the Holders of not less than 25% in aggregate principal amount
of the Outstanding Securities of this series may declare the principal amount
of all the Securities of this series to be due and payable immediately, by a
notice in writing to the Corporation (and to the Trustee if given by Holders), provided that, if upon an Event of
Default, the Trustee or such Holders fail to declare the principal of all the
Outstanding Securities of this series to be immediately due and payable, the
holders of at least 25% in aggregate Liquidation Amount of the Capital
Securities then Outstanding shall have the right to make such declaration by a
notice in writing to the Corporation and the Trustee; and upon any such
declaration the principal amount of and the accrued interest (including any
Additional Interest) on all the Securities of this series shall become
immediately due and payable, provided
that the payment of principal and interest (including any Additional Interest)
on such Securities shall remain subordinated to the extent provided in Article
XIII of the Indenture.

 

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

 

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable in the Securities Register, upon surrender of this
Security for registration of transfer at the office or agency of the
Corporation maintained under Section 10.2 of the Indenture for such
purpose, duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Corporation and the Securities Registrar duly
executed by, the Holder hereof or such Holder’s attorney duly authorized in
writing, and thereupon one or more new Securities of this series, of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

 

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

 

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

 

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

 

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

 

THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

  
  
 

EXHIBIT B

REPLACEMENT CAPITAL
COVENANT

  
  
 

EXHIBIT C

FORM OF AMENDED AND

RESTATED TRUST
AGREEMENT

  
  
 

EXHIBIT D

FORM OF GUARANTEE
AGREEMENT

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