Document:

Unassociated Document

    Exhibit
      4.3

    

    BAY
      NATIONAL CORPORATION

    

    as
      Issuer

    

    INDENTURE

    

    Dated
      as of December 12, 2005

    

    WILMINGTON
      TRUST COMPANY

    

    as
      Trustee

    

    FIXED
      RATE JUNIOR SUBORDINATED DEBT SECURITIES DUE 2036

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
      OF CONTENTS

     

    
      	 	 	PAGE
	
              ARTICLE
                I

            	
              DEFINITIONS

            	
              1

            
	
              Section
                1.01

            	
              Definitions

            	
              1

            
	
              ARTICLE
                II

            	
              DEBT
                SECURITIES

            	
              9

            
	
              Section
                2.01

            	
              Authentication
                and Dating

            	
              9

            
	
              Section
                2.02

            	
              Form
                of Trustee’s Certificate of Authentication

            	
              9

            
	
              Section
                2.03

            	
              Form
                and Denomination of Debt Securities

            	
              10

            
	
              Section
                2.04

            	
              Execution
                of Debt Securities

            	
              10

            
	
              Section
                2.05

            	
              Exchange
                and Registration of Transfer of Debt Securities

            	
              10

            
	
              Section
                2.06

            	
              Mutilated,
                Destroyed, Lost or Stolen Debt Securities

            	
              13

            
	
              Section
                2.07

            	
              Temporary
                Debt Securities

            	
              14

            
	
              Section
                2.08

            	
              Payment
                of Interest

            	
              15

            
	
              Section
                2.09

            	
              Cancellation
                of Debt Securities Paid, etc.

            	
              16

            
	
              Section
                2.10

            	
              Computation
                of Interest

            	
              16

            
	
              Section
                2.11

            	
              Extension
                of Interest Payment Period

            	
              17

            
	
              Section
                2.12

            	
              CUSIP
                Numbers

            	
              17

            
	
              Section
                2.13

            	
              Global
                Debentures

            	
              17

            
	
              ARTICLE
                III

            	
              PARTICULAR
                COVENANTS OF THE COMPANY

            	
              20

            
	
              Section
                3.01

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

            	
              20

            
	
              Section
                3.02

            	
              Offices
                for Notices and Payments, etc.

            	
              21

            
	
              Section
                3.03

            	
              Appointments
                to Fill Vacancies in Trustee’s Office

            	
              22

            
	
              Section
                3.04

            	
              Provision
                as to Paying Agent

            	
              22

            
	
              Section
                3.05

            	
              Certificate
                to Trustee

            	
              23

            
	
              Section
                3.06

            	
              Additional
                Amounts

            	
              23

            
	
              Section
                3.07

            	
              Compliance
                with Consolidation Provisions

            	
              24

            
	
              Section
                3.08

            	
              Limitation
                on Dividends

            	
              24

            
	
              Section
                3.09

            	
              Covenants
                as to the Trust

            	
              24

            
	
              ARTICLE
                IV

            	
              LISTS

            	
              25

            
	
              Section
                4.01

            	
              Securityholders’
                Lists

            	
              25

            

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    
      	
              Section
                4.02

            	
              Preservation
                and Disclosure of Lists

            	
              25

            
	
              Section
                4.03

            	
              Financial
                and Other Information

            	
              26

            
	
              ARTICLE
                V

            	
              REMEDIES
                OF THE TRUSTEE AND SECURITYHOLDERS

            	
              27

            
	
              Section
                5.01

            	
              Events
                of Default

            	
              27

            
	
              Section
                5.02

            	
              Payment
                of Debt Securities on Default; Suit Therefor

            	
              29

            
	
              Section
                5.03

            	
              Application
                of Moneys Collected by Trustee

            	
              31

            
	
              Section
                5.04

            	
              Proceedings
                by Securityholders

            	
              31

            
	
              Section
                5.05

            	
              Proceedings
                by Trustee.

            	
              32

            
	
              Section
                5.06

            	
              Remedies
                Cumulative and Continuing

            	
              32

            
	
              Section
                5.07

            	
              Direction
                of Proceedings and Waiver of Defaults by Majority of
                Securityholders

            	
              32

            
	
              Section
                5.08

            	
              Notice
                of Defaults

            	
              33

            
	
              Section
                5.09

            	
              Undertaking
                to Pay Costs

            	
              33

            
	
              ARTICLE
                VI

            	
              CONCERNING
                THE TRUSTEE

            	
              34

            
	
              Section
                6.01

            	
              Duties
                and Responsibilities of Trustee

            	
              34

            
	
              Section
                6.02

            	
              Reliance
                on Documents, Opinions, etc.

            	
              35

            
	
              Section
                6.03

            	
              No
                Responsibility for Recitals, etc.

            	
              36

            
	
              Section
                6.04

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

            	
              36

            
	
              Section
                6.05

            	
              Moneys
                to be Held in Trust

            	
              37

            
	
              Section
                6.06

            	
              Compensation
                and Expenses of Trustee.

            	
              37

            
	
              Section
                6.07

            	
              Officers’
                Certificate as Evidence

            	
              38

            
	
              Section
                6.08

            	
              Eligibility
                of Trustee

            	
              38

            
	
              Section
                6.09

            	
              Resignation
                or Removal of Trustee

            	
              39

            
	
              Section
                6.10

            	
              Acceptance
                by Successor Trustee

            	
              40

            
	
              Section
                6.11

            	
              Succession
                by Merger, etc

            	
              41

            
	
              Section
                6.12

            	
              Authenticating
                Agents

            	
              41

            
	
              ARTICLE
                VII

            	
              CONCERNING
                THE SECURITYHOLDERS

            	
              42

            
	
              Section
                7.01

            	
              Action
                by Securityholders

            	
              42

            
	
              Section
                7.02

            	
              Proof
                of Execution by Securityholders

            	
              43

            
	
              Section
                7.03

            	
              Who
                Are Deemed Absolute Owners

            	
              43

            

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    
      	
              Section
                7.04

            	
              Debt
                Securities Owned by Company Deemed Not Outstanding

            	
              43

            
	
              Section
                7.05

            	
              Revocation
                of Consents; Future Holders Bound

            	
              44

            
	
              ARTICLE
                VIII

            	
              SECURITYHOLDERS’
                MEETINGS

            	
              44

            
	
              Section
                8.01

            	
              Purposes
                of Meetings

            	
              44

            
	
              Section
                8.02

            	
              Call
                of Meetings by Trustee

            	
              45

            
	
              Section
                8.03

            	
              Call
                of Meetings by Company or Securityholders

            	
              45

            
	
              Section
                8.04

            	
              Qualifications
                for Voting

            	
              45

            
	
              Section
                8.05

            	
              Regulations

            	
              45

            
	
              Section
                8.06

            	
              Voting

            	
              46

            
	
              Section
                8.07

            	
              Quorum;
                Actions

            	
              46

            
	
              ARTICLE
                IX

            	
              SUPPLEMENTAL
                INDENTURES

            	
              47

            
	
              Section
                9.01

            	
              Supplemental
                Indentures without Consent of Securityholders

            	
              47

            
	
              Section
                9.02

            	
              Supplemental
                Indentures with Consent of Securityholders

            	
              49

            
	
              Section
                9.03

            	
              Effect
                of Supplemental Indentures

            	
              50

            
	
              Section
                9.04

            	
              Notation
                on Debt Securities

            	
              50

            
	
              Section
                9.05

            	
              Evidence
                of Compliance of Supplemental Indenture to be Furnished to
                Trustee

            	
              50

            
	
              ARTICLE
                X

            	
              REDEMPTION
                OF SECURITIES

            	
              50

            
	
              Section
                10.01

            	
              Optional
                Redemption

            	
              50

            
	
              Section
                10.02

            	
              Special
                Event Redemption

            	
              51

            
	
              Section
                10.03

            	
              Notice
                of Redemption; Selection of Debt Securities

            	
              51

            
	
              Section
                10.04

            	
              Payment
                of Debt Securities Called for Redemption

            	
              52

            
	
              ARTICLE
                XI

            	
              CONSOLIDATION,
                MERGER, SALE, CONVEYANCE AND LEASE

            	
              52

            
	
              Section
                11.01

            	
              Company
                May Consolidate, etc., on Certain Terms

            	
              52

            
	
              Section
                11.02

            	
              Successor
                Entity to be Substituted

            	
              53

            
	
              Section
                11.03

            	
              Opinion
                of Counsel to be Given to Trustee.

            	
              54

            
	
              ARTICLE
                XII

            	
              SATISFACTION
                AND DISCHARGE OF INDENTURE

            	
              54

            
	
              Section
                12.01

            	
              Discharge
                of Indenture

            	
              54

            
	
              Section
                12.02

            	
              Deposited
                Moneys to be Held in Trust by Trustee

            	
              55

            
	
              Section
                12.03

            	
              Paying
                Agent to Repay Moneys Held

            	
              55

            

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    
      	
              Section
                12.04

            	
              Return
                of Unclaimed Moneys

            	
              55

            
	
              ARTICLE
                XIII

            	
              IMMUNITY
                OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

            	
              55

            
	
              Section
                13.01

            	
              Indenture
                and Debt Securities Solely Corporate Obligations

            	
              55

            
	
              ARTICLE
                XIV

            	
              MISCELLANEOUS
                PROVISIONS

            	
              56

            
	
              Section
                14.01

            	
              Successors

            	
              56

            
	
              Section
                14.02

            	
              Official
                Acts by Successor Entity

            	
              56

            
	
              Section
                14.03

            	
              Surrender
                of Company Powers

            	
              56

            
	
              Section
                14.04

            	
              Addresses
                for Notices, etc

            	
              56

            
	
              Section
                14.05

            	
              Governing
                Law

            	
              56

            
	
              Section
                14.06

            	
              Evidence
                of Compliance with Conditions Precedent

            	
              56

            
	
              Section
                14.07

            	
              Business
                Day Convention

            	
              57

            
	
              Section
                14.08

            	
              Table
                of Contents, Headings, etc

            	
              57

            
	
              Section
                14.09

            	
              Execution
                in Counterparts

            	
              57

            
	
              Section
                14.10

            	
              Separability

            	
              57

            
	
              Section
                14.11

            	
              Assignment

            	
              58

            
	
              Section
                14.12

            	
              Acknowledgment
                of Rights

            	
              58

            
	
              ARTICLE
                XV

            	
              SUBORDINATION
                OF DEBT SECURITIES

            	
              58

            
	
              Section
                15.01

            	
              Agreement
                to Subordinate

            	
              58

            
	
              Section
                15.02

            	
              Default
                on Senior Indebtedness

            	
              59

            
	
              Section
                15.03

            	
              Liquidation;
                Dissolution; Bankruptcy

            	
              59

            
	
              Section
                15.04

            	
              Subrogation

            	
              60

            
	
              Section
                15.05

            	
              Trustee
                to Effectuate Subordination

            	
              61

            
	
              Section
                15.06

            	
              Notice
                by the Company

            	
              61

            
	
              Section
                15.07

            	
              Rights
                of the Trustee; Holders of Senior Indebtedness

            	
              62

            
	
              Section
                15.08

            	
              Subordination
                May Not Be Impaired

            	
              63

            
	
              EXHIBIT
                A

            	
              FORM
                OF DEBT SECURITY

            	
              1

            
	
              EXHIBIT
                B

            	
              FORM
                OF CERTIFICATE OF OFFICER OF THE COMPANY

            	
              1

            

    

     

     

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

     

    

      THIS
        INDENTURE, dated as of December 12, 2005, between Bay National Corporation,
        a
        bank holding company incorporated in the State of Maryland (hereinafter
        sometimes called the “Company”), and Wilmington Trust Company, a Delaware
        banking corporation, as trustee (hereinafter sometimes called the
“Trustee”).

      

      WlTNESSETH:

      

      WHEREAS,
        for its lawful corporate purposes, the Company has duly authorized the issuance
        of its Fixed Rate Junior Subordinated Debt Securities due 2036 (the “Debt
        Securities”) under this Indenture and to provide, among other things, for the
        execution and authentication, delivery and administration thereof, the Company
        has duly authorized the execution of this Indenture.

      

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

      

      ARTICLE
        I

      DEFINITIONS

      

      Section
        1.01  Definitions.

      

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

      

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

      

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

      

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

      

      “Applicable
        Depositary Procedures” means, with respect to any transfer or transaction
        involving a Book-Entry Capital Security or a Debt Security represented by
        a
        Global Debenture, the rules and procedures of the Depositary for such Book-Entry
        Capital Security or Debt Security represented by a Global Debenture, in each
        case to the extent applicable to such transaction and as in effect from time
        to
        time.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

      “Book-Entry
        Capital Security” means a Capital Security the ownership and transfers of which
        shah be reflected and made, as applicable, through book entries by the
        Depositary.

      

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

      

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

      

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

      

      “Capital
        Treatment Event” means, if the Company is organized and existing under the laws
        of the United States or any state thereof or the District of Columbia, the
        receipt by the Company and the Trust of an Opinion of Counsel experienced
        in
        such matters to the effect that, as a result of any amendment to, or change
        in,
        the laws, rules or regulations of the United States or any political subdivision
        thereof or therein, or as the result of any official or administrative
        pronouncement or action or decision interpreting or applying such laws, rules
        or
        regulations, which amendment or change is effective or which pronouncement,
        action or decision is announced on or after the date of original issuance
        of the
        Debt Securities, there is more than an insubstantial risk that the Company
        will
        not, within 90 days of the date of such opinion, be entitled to treat Capital
        Securities as “Tier 1 Capital” (or the then equivalent thereof) for purposes of
        the capital adequacy guidelines of the Federal Reserve (or any successor
        regulatory authority with jurisdiction over bank holding companies), as then
        in
        effect and applicable to the Company; provided,
        however,
        that
        the inability of the Company to treat all or any portion of the aggregate
        Liquidation Amount of the Capital Securities as “Tier 1 Capital” shall not
        constitute the basis for a Capital Treatment Event if such inability results
        from the Company having preferred stock, minority interests in consolidated
        subsidiaries and any other class of security or interest which the Federal
        Reserve (or any successor regulatory authority with jurisdiction over bank
        holding companies) may now or hereafter accord “Tier 1 Capital” treatment that,
        in the aggregate, exceed the amount which may now or hereafter qualify for
        treatment as “Tier 1 Capital” under applicable capital adequacy guidelines of
        the Federal Reserve (or any successor regulatory authority with jurisdiction
        over bank holding companies); provided,
        further, however, that the distribution of the Debt Securities in connection
        with the liquidation of the Trust by the Company shall not in and of itself
        constitute a Capital Treatment Event unless such liquidation shall have occurred
        in connection with a Tax Event or an Investment Company Event. For the avoidance
        of doubt, the inability of the Company to treat all or any portion of the
        aggregate Liquidation Amount of the Capital Securities as “Tier 1 Capital” as a
        result of the changes effected by the final rule adopted by the Federal Reserve
        on March 1, 2005 shall not constitute the basis for a Capital Treatment
        Event.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      “Company”
        means Bay National Corporation, a bank holding company incorporated in the
        State
        of Maryland, and, subject to the provisions of Article XI, shall include
        its
        successors and assigns.

      

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

      

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

      

      “Declaration”
        means the Amended and Restated Declaration of Trust of the Trust, dated as
        of
        December 12, 2005, as amended or supplemented from time to time.

      

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

      

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

      

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

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

      “Global
        Debenture” means a global certificate that evidences all or part of the Debt
        Securities the ownership and transfers of which shall be reflected and made,
        as
        applicable, through book entries by the Depositary and the Depositary
        Participants.

      

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

      

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

      

      “Interest
        Payment Date” means February 23, May 23, August 23 and November 23 of each year,
        commencing on February 23, 2006, subject to Section 14.07.

      

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

      

      “Interest
        Rate” means 7.20% per annum.

      

      “Investment
        Company Event” means the receipt by the Company and the Trust of an Opinion of
        Counsel experienced in such matters to the effect that, as a result of a
        change
        in law or regulation or written change in interpretation or application of
        law
        or regulation by any legislative body, court, governmental agency or regulatory
        authority, there is more than an insubstantial risk that the Trust is or,
        within
        90 days of the date of such opinion will be, considered an “investment company”
that is required to be registered under the Investment Company Act of 1940,
        as
        amended, which change becomes effective on or after the date of the original
        issuance of the Debt Securities.

      

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

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      “Major
        Depository Institution Subsidiary” means any subsidiary of the Company that
        (i) is a depository institution and (ii) meets the definition of
“significant subsidiary” within the meaning of Rule 405 under the Securities
        Act. 

      

      “Maturity
        Date” means February 23, 2036, subject to Section 14.07.

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

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

      

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

      

      “Special
        Redemption Price” means, with respect to the redemption of any Debt Security
        following a Special Event, an amount in cash equal to 104.00% of the principal
        amount of Debt Securities to be redeemed prior to February 23, 2007 and
        thereafter equal to the percentage of the principal amount of the Debt
        Securities that is specified below for the Special Redemption Date plus,
        in each
        case, unpaid interest accrued thereon to the Special Redemption
        Date:

      

      
        	
                Special
                  Redemption During the 12-Month

                Period
                  Beginning February 23

              	
                Percentage
                  of Principal Amount

              
	 	 
	
                2007

              	
                103.20%

              
	
                2008

              	
                102.40%

              
	
                2009

              	
                101.60%

              
	
                2010

              	
                100.80%

              
	
                2011
                  and thereafter

              	
                100.00%

              

      

      

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

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

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

      States
        or
        any state thereof or the District of Columbia, interest payable by the Company
        on the Debt Securities is not, or within 90 days of the date of such opinion,
        will not be, deductible by the Company, in whole or in part, for United States
        federal income tax purposes; or (iii) the Trust is, or will be within 90
        days of the date of such opinion, subject to or otherwise required to pay,
        or
        required to withhold from distributions to holders of Trust Securities, more
        than a de
        minimis
        amount
        of other taxes (including withholding taxes), duties, assessments or other
        governmental charges.

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

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

      

      ARTICLE
        II

      DEBT
        SECURITIES

      

      Section
        2.01  Authentication
        and Dating.

      

      Upon
        the
        execution and delivery of this Indenture, or from time to time thereafter,
        Debt
        Securities in an aggregate principal amount not in excess of $8,248,000 may
        be
        executed and delivered by the Company to the Trustee for authentication,
        and the
        Trustee shall thereupon authenticate and make available for delivery said
        Debt
        Securities to or upon the written order of the Company, signed by its Chairman
        of the Board of Directors, Vice Chairman, President or Chief Financial Officer
        or one of its Vice Presidents, without any further action by the Company
        hereunder. In authenticating such Debt Securities, and accepting the additional
        responsibilities under this Indenture in relation to such Debt Securities,
        the
        Trustee shall be entitled to receive, and (subject to Section 6.01) shall
        be
        fully protected in relying upon a copy of any Board Resolution or Board
        Resolutions relating thereto and, if applicable, an appropriate record of
        any
        action taken pursuant to such resolution, in each case certified by the
        Secretary or an Assistant Secretary or other officers with appropriate delegated
        authority of the Company as the case may be.

      

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

      

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

      

      Section
        2.02  Form
        of Trustee’s Certificate of Authentication.

      

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

      

      This
        certificate represents Debt Securities referred to in the within-mentioned
        Indenture.

      

        
          	 	
                  Wilmington
                    Trust Company,

                
	 	
                  not
                    in its individual capacity

                
	 	
                  but
                    solely as trustee

                
	 	 
	 	
                  By:_____________________________

                
	 	
                  Authorized
                    Officer

                

        

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      Section
        2.03  Form
        and Denomination of Debt Securities.

      

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

      

      Section
        2.04  Execution
        of Debt Securities.

      

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

      

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

      

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

      

      Section
        2.05  Exchange
        and Registration of Transfer of Debt Securities.

      

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

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

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

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

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

      

      THIS
        SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS
        OF
        $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER
        OF
        THIS SECURITY IN DENOMINATIONS OF LESS THAN $100,000 SHALL BE DEEMED TO BE
        VOID
        AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE
        DEEMED
        NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN
        FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS
        ON
        THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE
        SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR ANY INTEREST
        OR PARTICIPATION HEREIN. 

      

      THIS
        OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
        AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
        CORPORATION (THE “FDIC”). THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE
        DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY,
        IS
        INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES
        AND IS NOT SECURED. 

      

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

      

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

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

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

      

      Every
        substituted Debt Security issued pursuant to the provisions of this Section
        2.06
        by virtue of the fact that any such Debt Security is destroyed, lost or stolen
        shall constitute an additional contractual obligation of the Company, whether
        or
        not the destroyed, lost or stolen Debt Security shall be found at any time,
        and
        shall be entitled to all the benefits of this Indenture equally and
        proportionately with any and all other Debt Securities duly issued hereunder.
        All Debt Securities shall be held and owned upon the express condition that,
        to
        the extent permitted by applicable law, the foregoing provisions are exclusive
        with respect to the replacement or payment of mutilated, destroyed, lost
        or
        stolen Debt Securities and shall preclude any and all other rights or remedies
        notwithstanding any law or statute existing or hereafter enacted to the contrary
        with respect to the replacement or payment of negotiable instruments or other
        securities without their surrender.

      

      Section
        2.07  Temporary
        Debt Securities.

      

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

      

      
        
           

        

        
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      Section
        2.08  Payment
        of Interest.

      

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

      

      Any
        interest on any Debt Security, other than Deferred Interest, that is payable,
        but is not punctually paid or duly provided for by the Company, on any Interest
        Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
        payable to the holder on the relevant regular record date by virtue of having
        been such holder, and such Defaulted Interest shall be paid by the Company
        to
        the Persons in whose names such Debt Securities (or their respective Predecessor
        Securities) are registered at the close of business on a special record date
        for
        the payment of such Defaulted Interest, which shall be fixed in the following
        manner: the Company shall notify the Trustee in writing of the amount of
        Defaulted Interest proposed to be paid on each such Debt Security and the
        date
        of the proposed payment, and at the same time the Company shall deposit with
        the
        Trustee an amount of money equal to the aggregate amount proposed to be paid
        in
        respect of such Defaulted Interest or shall make arrangements reasonably
        satisfactory to the Trustee for such deposit prior to the date of the proposed
        payment, such money when deposited to be held in trust for the benefit of
        the
        Persons entitled to such Defaulted Interest as provided in this paragraph.
        Thereupon the Trustee shall fix a special record date for the payment of
        such
        Defaulted Interest, which shall not be more than fifteen nor less than ten
        days
        prior to the date of the proposed payment and not less than ten days after
        the
        receipt by the Trustee of the notice of the proposed payment. The Trustee
        shall
        promptly notify the Company of such special record date and, in the name
        and at
        the expense of the Company, shall cause notice of the proposed payment of
        such
        Defaulted Interest and the special record date therefor to be mailed, first
        class postage prepaid, to each Securityholder at his or her address as it
        appears in the Debt Security Register, not less than ten days prior to such
        special record date. Notice of the proposed payment of such Defaulted Interest
        and the special record date therefor having been mailed as aforesaid, such
        Defaulted Interest shall be paid to the Persons in whose names such Debt
        Securities (or their respective Predecessor Securities) are registered on
        such
        special record date and thereafter the Company shall have no further payment
        obligation in respect of the Defaulted Interest. 

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      Section
        2.09 Cancellation
        of Debt Securities Paid, etc.

      

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

      

      Section
        2.10  Computation
        of Interest.

      

      The
        amount of interest payable for any Interest Period will be computed on the
        basis
        of a 360-day year consisting of twelve 30-day months. 

      

      
        
           

        

        
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      Section
        2.11 Extension
        of Interest Payment Period.
        

      

      So
        long
        as no Event of Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or
        (i)
        of this Indenture has occurred and is continuing, the Company shall have
        the
        right, from time to time and without causing an Event of Default, to defer
        payments of interest on the Debt Securities by extending the interest payment
        period on the Debt Securities at any time and from time to time during the
        term
        of the Debt Securities, for up to 20 consecutive quarterly periods (each
        such
        extended interest payment period, together with all previous and further
        consecutive extensions thereof, is referred to herein as an “Extension Period”).
        No Extension Period may end on a date other than an Interest Payment Date
        or
        extend beyond the Maturity Date, any Optional Redemption Date or the Special
        Redemption Date, as the case may be. During any Extension Period, interest
        will
        continue to accrue on the Debt Securities, and interest on such accrued interest
        (such accrued interest and interest thereon referred to herein as “Deferred
        Interest”) will accrue at an annual rate equal to the Interest Rate, compounded
        quarterly from the date such Deferred Interest would have been payable were
        it
        not for the Extension Period, to the extent permitted by applicable law.
        No
        interest or Deferred Interest (except any Additional Amounts that may be
        due and
        payable) shall be due and payable during an Extension Period, except at the
        end
        thereof At the end of any Extension Period, the Company shall pay all Deferred
        Interest then accrued and unpaid on the Debt Securities; provided,
        however,
        that
        during any Extension Period, the Company shall be subject to the restrictions
        set forth in Section 3.08. Prior to the termination of any Extension Period,
        the
        Company may further extend such Extension Period, provided,
        that no
        Extension Period (including all previous and further consecutive extensions
        that
        are part of such Extension Period) shall exceed 20 consecutive quarterly
        periods. Upon the termination of any Extension Period and upon the payment
        of
        all Deferred Interest, the Company may commence a new Extension Period, subject
        to the foregoing requirements. The Company must give the Trustee notice of
        its
        election to begin or extend an Extension Period no later than the close of
        business on the fifteenth Business Day prior to the applicable Interest Payment
        Date. The Trustee shall give notice of the Company’s election to begin or extend
        an Extension Period to the Securityholders, promptly after receipt of notice
        from the Company of its election to begin or extend an Extension
        Period.

      

      Section
        2.12  CUSIP
        Numbers.

      

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

      

      Section
        2.13  Global
        Debentures.

      

      (a)
         Upon
        the
        election of an owner of beneficial interests in outstanding Debt Securities,
        the
        Debt Securities owned by such beneficial owner shall be issued in the form
        of
        one or more Global Debentures. Each Global Debenture issued under this Indenture
        shall be registered in the name of the Depositary designated by the Company
        for
        such Global Debenture or a nominee of such Depositary and delivered to such
        Depositary or a nominee thereof or custodian therefor, and each such Global
        Debenture shall constitute a single Debt Security for all purposes of this
        Indenture.

      

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

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

      

      (c)
         If
        any
        Global Debenture is to be exchanged for Debt Securities in certificated form
        or
        canceled in part, or if a Debt Security in certificated form is to be exchanged
        in whole or in part for a beneficial interest in any Global Debenture, then
        either (i) such Global Debenture shall be so surrendered for exchange or
        cancellation as provided herein or (ii) the principal amount thereof shall
        be reduced or increased, subject to Section 2.03, by an amount equal to the
        portion thereof to be so exchanged or canceled, or equal to the principal
        amount
        of such Debt Security to be so exchanged for a beneficial interest therein,
        as
        the case may be, by means of an appropriate adjustment made on the records
        of
        the Debt Security registrar, whereupon the Trustee, in accordance with the
        Applicable Depositary Procedures, shall instruct the Depositary or its
        authorized representative to make a corresponding adjustment to its records.
        Upon any such surrender or adjustment of a Global Debenture by the Depositary,
        accompanied by registration instructions, the Company shall execute and the
        Trustee shall authenticate and deliver Debt Securities issuable in exchange
        for
        such Global Debenture (or any portion thereof) in accordance with the
        instructions of the Depositary. The Trustee may conclusively rely on, and
        shall
        be fully protected in relying on, such instructions.

      

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

      

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      (e)
         Debt
        Securities distributed to holders of Book-Entry Capital Securities (as defined
        in the Declaration) upon the dissolution of the Trust shall be distributed
        in
        the form of one or more Global Debentures registered in the name of the
        Depositary or its nominee, and deposited with the Debt Securities registrar,
        as
        custodian for such Depositary, or with such Depositary, for credit by the
        Depositary to the owners of beneficial interests in such Book-Entry Capital
        Securities. Debt Securities distributed to holders of Capital Securities
        in
        certificated form upon the dissolution of the Trust shall be issued in
        certificated form. 

      

      (f)
         The
        Depositary or its nominee, as the registered owner of a Global Debenture,
        shall
        be the holder of such Global Debenture for all purposes under this Indenture
        and
        the Debt Securities, and owners of beneficial interests in a Global Debenture
        shall hold such interests pursuant to the Applicable Depositary Procedures.
        Accordingly, any such owner’s beneficial interest in a Global Debenture shall be
        shown only on, and the transfer of such interest shall be effected only through,
        records maintained by the Depositary or its nominee or its Depositary
        Participants. The Debt Securities registrar and the Trustee shall be entitled
        to
        deal with the Depositary for all purposes of this Indenture relating to a
        Global
        Debenture as the sole holder of the Debt Security and shall have no obligation
        to any beneficial owner of a Global Debenture. Neither the Trustee nor the
        Debt
        Securities registrar shall have any liability in respect of any transfers
        affected by the Depositary or its Depositary Participants. 

      

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

      

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

      

      (i)
         Global
        Debentures shall bear the following legend on the face thereof:

      

      THIS
        SECURITY IS A GLOBAL DEBENTURE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
        REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY
        (“DTC”) OR A NOMINEE OF DTC. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
        REGISTERED IN THE NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN
        THE
        LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
        SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY DTC TO A NOMINEE
        OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE
        REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES. UNLESS THIS SECURITY IS PRESENTED
        BY
        AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION
        OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED
        IN THE
        NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
        REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
        OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
        TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
        INTEREST HEREIN. 

      

      
        
           

        

        
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      ARTICLE
        III

      PARTICULAR
        COVENANTS OF THE COMPANY

      

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

      

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

      

      (b)
         The
        Company will treat the Debt Securities as indebtedness, and the interest
        payable
        in respect of such Debt Securities (including any Additional Amounts) as
        interest, for all U.S. federal income tax purposes. All payments in respect
        of
        such Debt Securities will be made free and clear of U.S. withholding tax
        provided, that (i) any beneficial owner thereof that is a “United States
        person” within the meaning of Section 7701 (a)(30) of the Code (A) has
        provided an Internal Revenue Service Form W-9 (or any substitute or successor
        form) in the manner required establishing its status as a “United States person”
for U.S. federal income tax purposes, and 03) the Internal Revenue Service
        has
        neither notified the Issuer that the taxpayer identification number furnished
        by
        such beneficial owner is incorrect nor notified the Issuer that there is
        underreporting by such beneficial owner, and (ii) any beneficial owner
        thereof that is not a “United States person” within the meaning of Section
        7701(a)(30) of the Code has provided an Internal Revenue Service Form W-8
        BEN,
        Internal Revenue Service Form W-8ECI, or Internal Revenue Service Form W-8EXP,
        as applicable (or any substitute or successor form) in the manner required
        establishing its non-U. S. status for U.S. federal income tax
        purposes.

      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

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

      

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

      

      Section
        3.02  Offices
        for Notices and Payments, etc.

      

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

      

      In
        addition to any such office or agency, the Company may from time to time
        designate one or more offices or agencies outside Wilmington, Delaware or
        Annapolis, Maryland where the Debt Securities may be presented for registration
        of transfer and for exchange in the manner provided in this Indenture, and
        the
        Company may from time to time rescind such designation, as the Company may
        deem
        desirable or expedient; provided,
        however,
        that no
        such designation or rescission shall in any manner relieve the Company of
        its
        obligation to maintain any such office or agency in Wilmington, Delaware
        or in
        Annapolis, Maryland for the purposes above mentioned. The Company will give
        to
        the Trustee prompt written notice of any such designation or rescission
        thereof.

      

      
        
           

        

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

      

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

      

      Section
        3.04  Provision
        as to Paying Agent.

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

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

      

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

      

      Section
        3.05 Certificate
        to Trustee.

      

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

      

      Section
        3.06  Additional
        Amounts.

      

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

      

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

      

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      Section
        3.07  Compliance
        with Consolidation Provisions.

      

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

      

      Section
        3.08  Limitation
        on Dividends.

      

      If
        (i) there shall have occurred and be continuing a Default or an Event of
        Default, (ii) the Company shall be in default with respect to its payment
        of any obligations under the Capital Securities Guarantee or (iii) the
        Company shall have given notice of its election to defer payments of interest
        on
        the Debt Securities by extending the interest payment period as provided
        herein
        and such period, or any extension thereof, shall have commenced and be
        continuing, then the Company may not (A) declare or pay any dividends or
        distributions on, or redeem, purchase, acquire, or make a liquidation payment
        with respect to, any of the Company’s capital stock, (B) make any payment
        of principal of or premium, if any, or interest on or repay, repurchase or
        redeem any debt securities of the Company that rank pari
        passu
        in all
        respects with or junior in interest to the Debt Securities or (C) make any
        payment under any guarantees of the Company that rank pari
        passu
        in all
        respects with or junior in interest to the Capital Securities Guarantee (other
        than (a) repurchases, redemptions or other acquisitions of shares of
        capital stock of the Company (I) in connection with any employment
        contract, benefit plan or other similar arrangement with or for the benefit
        of
        one or more employees, officers, directors or consultants, (II) in
        connection with a dividend reinvestment or stockholder stock purchase plan
        or
        (III) in connection with the issuance of capital stock of the Company (or
        securities convertible into or exercisable for such capital stock) as
        consideration in an acquisition transaction entered into prior to the occurrence
        of (i), (ii) or (iii) above, (b) as a result of any exchange or conversion
        of any class or series of the Company’s capital stock (or any capital stock of a
        subsidiary of the Company) for any class or series of the Company’s capital
        stock or of any class or series of the Company’s indebtedness for any class or
        series of the Company’s capital stock, (c) the purchase of fractional
        interests in shares of the Company’s capital stock pursuant to the conversion or
        exchange provisions of such capital stock or the security being converted
        or
        exchanged, (d) any declaration of a dividend in connection with any
        stockholder’s rights plan, or the issuance of rights, stock or other property
        under any stockholder’s rights plan, or the redemption or repurchase of rights
        pursuant thereto or (e) any dividend in the form of stock, warrants,
        options or other rights where the dividend stock or the stock issuable upon
        exercise of such warrants, options or other rights is the same stock as that
        on
        which the dividend is being paid or ranks pari
        passu
        with or
        junior in interest to such stock).

      

      Section
        3.09  Covenants
        as to the Trust.

      

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

      

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

      ARTICLE
        IV

      LISTS

      

      Section
        4.01  Securityholders’
        Lists.

      

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

      

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

      

      (b)
         at
        such
        other times as the Trustee may request in writing, within 30 days after the
        receipt by the Company of any such request, a list of similar form and content
        as of a date not more than 15 days prior to the time such list is furnished;
        except that no such lists need be furnished under this Section 4.01 so long
        as
        the Trustee is in possession thereof by reason of its acting as Debt Security
        registrar.

      

      Section
        4.02  Preservation
        and Disclosure of Lists.

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      If
        the
        Trustee shall elect not to afford such applicants access to such information,
        the Trustee shall, upon the written request of such applicants, mail to each
        Securityholder of Debt Securities whose name and address appear in the
        information preserved at the time by the Trustee in accordance with the
        provisions of subsection (a) of this Section 4.02 a copy of the form of proxy
        or
        other communication which is specified in such request with reasonable
        promptness after a tender to the Trustee of the material to be mailed and
        of
        payment, or provision for the payment, of the reasonable expenses of mailing,
        unless within five days after such tender, the Trustee shall mail to such
        applicants and file with the Securities and Exchange Commission, if permitted
        or
        required by applicable law, together with a copy of the material to be mailed,
        a
        written statement to the effect that, in the opinion of the Trustee, such
        mailing would be contrary to the best interests of the holders of all Debt
        Securities, as the case may be, or would be in violation of applicable law.
        Such
        written statement shall specify the basis of such opinion. If said Commission,
        as permitted or required by applicable law, after opportunity for a hearing
        upon
        the objections specified in the written statement so filed, shall enter an
        order
        refusing to sustain any of such objections or if, after the entry of an order
        sustaining one or more of such objections, said Commission shall find, after
        notice and opportunity for hearing, that all the objections so sustained
        have
        been met and shall enter an order so declaring, the Trustee shall mail copies
        of
        such material to all such Securityholders with reasonable promptness after
        the
        entry of such order and the renewal of such tender; otherwise the Trustee
        shall
        be relieved of any obligation or duty to such applicants respecting their
        application.

      

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

      

      Section
        4.03  Financial
        and Other Information.

      

      (a)
         The
        Company shall deliver, by hardcopy or electronic transmission, to each
        Securityholder (i) each Report on Form 10-KSB (or 10-K, if applicable) and
        Form 10-QSB (or 10-Q, if applicable), if any, prepared by the Company and
        filed
        with the Securities and Exchange Commission in accordance with the Exchange
        Act
        within 10 Business Days after the filing thereof or (ii) if the Company is
        (a) not then subject to Section 13 or 15(d) of the Exchange Act (a “Private
        Entity”) or (b) exempt from reporting pursuant to Rule 12g3-2(b)
        thereunder, the information required by Rule 144A(d)(4) under the Securities
        Act. Notwithstanding the foregoing, so long as a Holder of the Debt Securities
        is Sandier O’Neill & Partners, L.P. or an entity that holds a pool of trust
        preferred securities and/or debt securities as collateral for its securities
        or
        a trustee thereof, and the Company is (i) a Private Entity that, on the
        date of original issuance of the Debt Securities, is required to provide
        audited
        consolidated financial statements to its primary regulatory authority,
        (ii) a Private Entity that, on the date of original issuance of the Debt
        Securities, is not required to provide audited consolidated financial statements
        to its primary regulatory authority but subsequently becomes subject to the
        audited consolidated financial statement reporting requirements of that
        regulatory authority or (iii) subject to Section 13 or 15(d) of the
        Exchange Act on the date of original issuance of the Debt Securities or becomes
        so subject after the date hereof but subsequently becomes a Private Entity,
        then, within 90 days after the end of each fiscal year, beginning with the
        fiscal year in which the Debt Securities were originally issued if the Company
        was then subject to (x) Section 13 or 15(d) of the Exchange Act or
        (y) audited consolidated financial statement reporting requirements of its
        primary regulatory authority or, otherwise, the earliest fiscal year in which
        the Company becomes subject to (1) Section 13 or 15(d) of the Exchange Act
        or (2) the audited consolidated financial statement reporting requirements
        of its primary regulatory authority, the Company shall deliver, by hardcopy
        or
        electronic transmission, to each Securityholder, unless otherwise provided
        pursuant to the preceding sentence, (A) a copy of the Company’s audited
        consolidated financial statements (including balance sheet and income statement)
        covering the related annual period and (B) the report of the independent
        accountants with respect to such financial statements. In addition to the
        foregoing, the Company shall deliver to each Securityholder within 30 days
        after
        the end of the fiscal year of the Company, Form 1099 or such other annual
        U.S.
        federal income tax information statement required by the Code containing
        such
        information with regard to the Debt Securities held by such holder as is
        required by the Code and the income tax regulations of the U.S. Treasury
        thereunder.

      

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

      (b)
         If
        and so
        long as the Holder of the Debt Securities is Sandler O’Neill & Partners,
        L.P. or an entity that holds a pool of trust preferred securities and/or
        debt
        securities or a trustee thereof, the Company will cause copies of its reports
        on
        Forms FR Y-6, FR Y-9C and FR Y-9LP to be delivered to such Holder promptly
        following their filing with the Federal Reserve.

      

      ARTICLE
        V

      REMEDIES
        OF THE TRUSTEE AND SECURITYHOLDERS

      

      Section
        5.01  Events
        of Default.

      

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

      

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

      

      (b)
         the
        Company defaults in the payment of any interest upon any Debt Security,
        including any Additional Amounts in respect thereof, following the nonpayment
        of
        any such interest for twenty or more consecutive Interest Periods; or

      

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

      

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      (g)
         a
        court
        or administrative or governmental agency or body shall enter a decree or
        order
        for the appointment of a receiver of a Major Depository Institution Subsidiary
        or all or substantially all of its property in any liquidation, insolvency
        or
        similar proceeding with respect to such Major Depository Institution Subsidiary
        or all or substantially all of its property; or

      

      (h) a
        Major
        Depository Institution Subsidiary shall consent to the appointment of a receiver
        for it or all or substantially all of its property in any liquidation,
        insolvency or similar proceeding with respect to it or all or substantially
        all
        of its property; or 

      

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

      

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

      

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      The
        Company covenants that upon the occurrence of an Event of Default pursuant
        to
        clause (b) of Section 5.01 and upon demand of the Trustee, the Company will
        pay
        to the Trustee, for the benefit of the holders of the Debt Securities, the
        whole
        amount that then shall have become due and payable on all Debt Securities,
        including Deferred Interest accrued on the Debt Securities; and, in addition
        thereto, such further amount as shall be sufficient to cover the costs and
        expenses of collection, including a reasonable compensation to the Trustee,
        its
        agents, attorneys and counsel, and any other amounts due to the Trustee under
        Section 6.06. In case the Company shall fail forthwith to pay such amounts
        upon
        such demand, the Trustee, in its own name and as trustee of an express trust,
        shall be entitled and empowered to institute any actions or proceedings at
        law
        or in equity for the collection of the sums so due and unpaid, and may prosecute
        any such action or proceeding to judgment or final decree, and may enforce
        any
        such judgment or final decree against the Company or any other obligor on
        such
        Debt Securities and collect in the manner provided by law out of the property
        of
        the Company or any other obligor on such Debt Securities wherever situated
        the
        moneys adjudged or decreed to be payable.

      

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

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

      

      Section
        5.03 Application
        of Moneys Collected by Trustee.

      

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

      

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

      

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

      

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

      

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

      

      Section
        5.04 Proceedings
        by Securityholders.

      

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

      

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

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

      

      Section
        5.05 Proceedings
        by Trustee.

      

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

      

      Section
        5.06 Remedies
        Cumulative and Continuing.

      

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

      

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

      

      The
        holders of a majority in aggregate principal amount of the Debt Securities
        affected at the time outstanding and, if the Debt Securities are held by
        the
        Trust or a trustee of the Trust, the holders of a majority in aggregate
        liquidation amount of the outstanding Capital Securities of the Trust shall
        have
        the right to direct the time, method and place of conducting any proceeding
        for
        any remedy available to the Trustee, or exercising any trust or power conferred
        on the Trustee with respect to such Debt Securities; provided,
        however,
        that if
        the Debt Securities are held by the Trust or a trustee of the Trust, such
        time,
        method and place or such exercise, as the case may be, may not be so directed
        until the holders of a majority in aggregate liquidation amount of the
        outstanding Capital Securities of the Trust shall have directed such time,
        method and place or such exercise, as the case may be; provided,
        further, that (subject to the provisions of Section 6.01) the Trustee shall
        have
        the right to decline to follow any such direction if the Trustee shall determine
        that the action so directed would be unjustly prejudicial to the holders
        not
        taking part in such direction or if the Trustee being advised by counsel
        determines that the action or proceeding so directed may not lawfully be
        taken
        or if a Responsible Officer of the Trustee shall determine that the action
        or
        proceedings so directed would involve the Trustee in personal liability.
        Prior
        to any declaration of acceleration, or ipso
        facto
        acceleration, of the maturity of the Debt Securities, the holders of a majority
        in aggregate principal amount of the Debt Securities at the time outstanding
        may
        on behalf of the holders of all of the Debt Securities waive (or modify any
        previously granted waiver of) any past Default or Event of Default and its
        consequences, except a default (a) in the payment of principal of or
        premium, if any, or interest on any of the Debt Securities, (b) in respect
        of covenants or provisions hereof which cannot be modified or amended without
        the consent of the holder of each Debt Security affected, or (c) in respect
        of the covenants contained in Section 3.09; provided,
        however,
        that if
        the Debt Securities are held by the Trust or a trustee of the Trust, such
        waiver
        or modification to such waiver shall not be effective until the holders of
        a
        majority in aggregate liquidation amount of the outstanding Capital Securities
        of the Trust shall have consented to such waiver or modification to such
        waiver;
provided,
        further, that if the consent of the holder of each outstanding Debt Security
        is
        required, such waiver or modification to such waiver shall not be effective
        until each holder of the outstanding Capital Securities of the Trust shall
        have
        consented to such waiver or modification to such waiver. Upon any such waiver
        or
        modification to such waiver, the Default or Event of Default covered thereby
        shall be deemed to be cured for all purposes of this Indenture and the Company,
        the Trustee and the holders of the Debt Securities shall be restored to their
        former positions and rights hereunder, respectively; but no such waiver or
        modification to such waiver shall extend to any subsequent or other Default
        or
        Event of Default or impair any right consequent thereon. Whenever any Default
        or
        Event of Default hereunder shall have been waived as permitted by this Section,
        said Default or Event of Default shall for all purposes of the Debt Securities
        and this Indenture be deemed to have been cured and to be not
        continuing.

      

      
        
           

        

        
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      Section
        5.08 Notice
        of Defaults.

      

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

      

      Section
        5.09 Undertaking
        to Pay Costs.

      

      All
        parties to this Indenture agree, and each holder of any Debt Security by
        such
        holder’s acceptance thereof shall be deemed to have agreed, that any court may
        in its discretion require, in any suit for the enforcement of any right or
        remedy under this Indenture, or in any suit against the Trustee for any action
        taken or omitted by it as Trustee, the filing by any party litigant in such
        suit
        of an undertaking to pay the costs of such suit, and that such court may
        in its
        discretion assess reasonable costs, including reasonable attorneys’ fees and
        expenses, against any party litigant in such suit, having due regard to the
        merits and good faith of the claims or defenses made by such party litigant;
        but
        the provisions of this Section shall not apply to any suit instituted by
        the
        Trustee, to any suit instituted by any Securityholder, or group of
        Securityholders, holding in the aggregate more than 10% in principal amount
        of
        the outstanding Debt Securities (or, if such Debt Securities are held by
        the
        Trust or a trustee of the Trust, more than 10% in liquidation amount of the
        outstanding Capital Securities), to any suit instituted by any Securityholder
        for the enforcement of the payment of the principal of or premium, if any,
        or
        interest on any Debt Security against the Company on or after the same shall
        have become due and payable or to any suit instituted in accordance with
        Section
        14.12.

      

      
        
           

        

        
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      ARTICLE
        VI

      CONCERNING
        THE TRUSTEE

      

      Section
        6.01 Duties
        and Responsibilities of Trustee.

      

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

      

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

      

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

      

      (i) the
        duties and obligations of the Trustee with respect to the Debt Securities
        shall
        be determined solely by the express provisions of this Indenture, and the
        Trustee shall not be liable except for the performance of such duties and
        obligations with respect to the Debt Securities as are specifically set forth
        in
        this Indenture, and no implied covenants or obligations shall be read into
        this
        Indenture against the Trustee; and 

      

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

      

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

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

      

      (c) the
        Trustee shall not be liable with respect to any action taken or omitted to
        be
        taken by it in good faith, in accordance with the direction of the
        Securityholders pursuant to Section 5.07, relating to the time, method and
        place
        of conducting any proceeding for any remedy available to the Trustee, or
        exercising any trust or power conferred upon the Trustee, under this Indenture;
        and

      

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

      

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

      

      Section
        6.02 Reliance
        on Documents, Opinions, etc.

      

      Except
        as
        otherwise provided in Section 6.01:

      

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

      

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

      

      (c) the
        Trustee may consult with counsel of its selection and any advice or Opinion
        of
        Counsel shall be full and complete authorization and protection in respect
        of
        any action taken, suffered or omitted by it hereunder in good faith and in
        accordance with such advice or Opinion of Counsel;

      

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

      Section
        6.03 No
        Responsibility for Recitals, etc.

      

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

      

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

      

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

      

      
        
           

        

        
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      Section
        6.05 Moneys
        to be Held in Trust.

      

      Subject
        to the provisions of Section 12.04, all moneys received by the Trustee or
        any
        Paying Agent shall, until used or applied as herein provided, be held in
        trust
        for the purpose for which they were received, but need not be segregated
        from
        other funds except to the extent required by law. The Trustee and any Paying
        Agent shall be under no liability for interest on any money received by it
        hereunder except as otherwise agreed in writing with the Company. So long
        as no
        Event of Default shall have occurred and be continuing, all interest allowed
        on
        any such moneys, if any, shall be paid from time to time to the Company upon
        the
        written order of the Company, signed by the Chairman of the Board of Directors,
        the President, the Chief Operating Officer, a Vice President, the Treasurer
        or
        an Assistant Treasurer of the Company.

      

      Section
        6.06 Compensation
        and Expenses of Trustee.

      

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

      

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

      

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

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

      

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

      

      Section
        6.07 Officers’
        Certificate as Evidence.

      

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

      

      Section
        6.08 Eligibility
        of Trustee.

      

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

      

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

      

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

      

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

      

      
        
           

        

        
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      Section
        6.09 Resignation
        or Removal of Trustee.

      

      (a) The
        Trustee, or any trustee or trustees hereafter appointed, may at any time
        resign
        by giving written notice of such resignation to the Company and by mailing
        notice thereof, at the Company’s expense, to the holders of the Debt Securities
        at their addresses as they shall appear on the Debt Security Register. Upon
        receiving such notice of resignation, the Company shall promptly appoint
        a
        successor trustee or trustees by written instrument, in duplicate, executed
        by
        order of its Board of Directors, one copy of which instrument shall be delivered
        to the resigning Trustee and one copy to the successor Trustee. If no successor
        Trustee shall have been so appointed and have accepted appointment within
        30
        days after the mailing of such notice of resignation to the affected
        Securityholders, the resigning Trustee may petition any court of competent
        jurisdiction for the appointment of a successor Trustee, or any Securityholder
        who has been a bona fide holder of a Debt Security or Debt Securities for
        at
        least six months may, subject to the provisions of Section 5.09, on behalf
        of
        himself or herself and all others similarly situated, petition any such court
        for the appointment of a successor Trustee. Such court may thereupon, after
        such
        notice, if any, as it may deem proper and prescribe, appoint a successor
        Trustee. 

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

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

      

      Section
        6.10 Acceptance
        by Successor Trustee.

      

      Any
        successor Trustee appointed as provided in Section 6.09 shall execute,
        acknowledge and deliver to the Company and to its predecessor Trustee an
        indenture supplemental hereto which shall contain such provisions as shall
        be
        deemed necessary or desirable to confirm that all of the rights, powers,
        trusts
        and duties of the retiring Trustee shall be vested in the successor Trustee,
        and
        thereupon the resignation or removal of the retiring Trustee shah become
        effective and such successor Trustee, without any further act, deed or
        conveyance, shall become vested with all the rights, powers, duties and
        obligations with respect to the Debt Securities of its predecessor hereunder,
        with like effect as if originally named as Trustee herein; but, nevertheless,
        on
        the written request of the Company or of the successor Trustee, the Trustee
        ceasing to act shall, upon payment of the amounts then due it pursuant to
        the
        provisions of Section 6.06, execute and deliver an instrument transferring
        to
        such successor Trustee all the rights and powers of the Trustee so ceasing
        to
        act and shall duly assign, transfer and deliver to such successor Trustee
        all
        property and money held by such retiring Trustee hereunder. Upon request
        of any
        such successor Trustee, the Company shall execute any and all instruments
        in
        writing for more fully and certainly vesting in and confirming to such successor
        Trustee all such rights and powers. Any Trustee ceasing to act shall,
        nevertheless, retain a lien upon all property or funds held or collected
        by such
        Trustee to secure any amounts then due it pursuant to the provisions of Section
        6.06. 

      

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

      

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

      

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

      

      
        
           

        

        
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      Section
        6.11 Succession
        by Merger, etc.

      

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

      

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

      

      Section
        6.12 Authenticating
        Agents.

      

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

      

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

      

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      Any
        Authenticating Agent may at any time resign by giving written notice of
        resignation to the Trustee and to the Company. The Trustee may at any time
        terminate the agency of any Authenticating Agent with respect to the Debt
        Securities by giving written notice of termination to such Authenticating
        Agent
        and to the Company. Upon receiving such a notice of resignation or upon such
        a
        termination, or in case at any time any Authenticating Agent shall cease
        to be
        eligible under this Section, the Trustee may, and upon the request of the
        Company shall, promptly appoint a successor Authenticating Agent eligible
        under
        this Section, shall give written notice of such appointment to the Company
        and
        shall mail notice of such appointment to all holders of Debt Securities as
        the
        names and addresses of such holders appear on the Debt Security Register.
        Any
        successor Authenticating Agent, upon acceptance of its appointment hereunder,
        shall become vested with all rights, powers, duties and responsibilities
        of its
        predecessor hereunder, with like effect as if originally named as Authenticating
        Agent herein. 

      

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

      

      ARTICLE
        VII

      CONCERNING
        THE SECURITYHOLDERS

      

      Section
        7.01 Action
        by Securityholders.
        

      

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

      

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

      

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      Section
        7.02 Proof
        of Execution by Securityholders.
        

      

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

      

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

      

      Section
        7.03 Who
        Are Deemed Absolute Owners.

      

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

      

      Section
        7.04 Debt
        Securities Owned by Company Deemed Not Outstanding.

      

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

      

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

      Section
        7.05 Revocation
        of Consents; Future Holders Bound.

      

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

      

      ARTICLE
        VIII

      SECURITYHOLDERS’
        MEETINGS

      

      Section
        8.01 Purposes
        of Meetings.
        

      

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

      

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

      

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

      

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

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

      

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

      

      Section
        8.02 Call
        of Meetings by Trustee.

      

      The
        Trustee may at any time call a meeting of Securityholders to take any action
        specified in Section 8.01, to be held at such time and at such place in The
        City
        of New York, the Borough of Manhattan, or Wilmington, Delaware, as the Trustee
        shall determine. Notice of every meeting of the Securityholders, setting
        forth
        the time and the place of such meeting and in general terms the action proposed
        to be taken at such meeting, shall be mailed to holders of Debt Securities
        affected at their addresses as they shall appear on the Debt Securities
        Register. Such notice shall be mailed not less than 20 nor more than 180
        days
        prior to the date fixed for the meeting. 

      

      Section
        8.03 Call
        of Meetings by Company or Securityholders.

      

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

      

      Section
        8.04 Qualifications
        for Voting.

      

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

      

      Section
        8.05 Regulations.

      

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

      

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

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

      

      Subject
        to the provisions of Section 7.04, at any meeting each holder of Debt Securities
        with respect to which such meeting is being held or proxy therefor shall
        be
        entitled to one vote for each $1,000 principal amount of Debt Securities
        held or
        represented by such holder; provided,
        however,
        that no
        vote shall be cast or counted at any meeting in respect of any Debt Security
        challenged as not outstanding and ruled by the chairman of the meeting to
        be not
        outstanding. The chairman of the meeting shall have no right to vote other
        than
        by virtue of Debt Securities held by such chairman or instruments in writing
        as
        aforesaid duly designating such chairman as the Person to vote on behalf
        of
        other Securityholders. Any meeting of Securityholders duly called pursuant
        to
        the provisions of Section 8.02 or 8.03 may be adjourned from time to time
        by a
        majority of those present, whether or not constituting a quorum, and the
        meeting
        may be held as so adjourned without further notice. 

      

      Section
        8.06 Voting.

      

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

      

      Section
        8.07 Quorum;
        Actions.
        

      

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

      

      
        
           

        

        
          46

          
            

          

        

        
           

        

      

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

      

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

      

      ARTICLE
        IX

      SUPPLEMENTAL
        INDENTURES

      

      Section
        9.01 Supplemental
        Indentures without Consent of Securityholders.
        

      

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

      

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

      

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

      

      
        
           

        

        
          47

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

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

      

      Section
        9.02 Supplemental
        Indentures with Consent of Securityholders.
        

      

      With
        the
        consent (evidenced as provided in Section 7.01) of the holders of a majority
        in
        aggregate principal amount of the Debt Securities at the time outstanding
        affected by such supplemental indenture, the Company, when authorized by
        a Board
        Resolution, and the Trustee may from time to time and at any time enter into
        an
        indenture or indentures supplemental hereto (which shall conform to the
        provisions of the Trust Indenture Act, then in effect, applicable to indentures
        qualified thereunder) for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of this Indenture or of any
        supplemental indenture or of modifying in any manner the rights of the holders
        of the Debt Securities; provided,
        however,
        that no
        such supplemental indenture shall, without the consent of the holders of
        each
        Debt Security then outstanding and affected thereby, (i) change the
        Maturity Date of any Debt Security, or reduce the principal amount thereof
        or
        any premium thereon, or reduce the rate or extend the time of payment of
        interest thereon, or reduce (other than as a result of the maturity or earlier
        redemption of any such Debt Security in accordance with the terms of this
        Indenture and such Debt Security) or increase the aggregate principal amount
        of
        Debt Securities then outstanding, or change any of the redemption provisions,
        or
        make the principal thereof or any interest or premium thereon payable in
        any
        coin or currency other than United States Dollars, or impair or affect the
        right
        of any Securityholder to institute suit for payment thereof, or (ii) reduce
        the aforesaid percentage of Debt Securities the holders of which are required
        to
        consent to any such supplemental indenture; and provided, further, that if
        the
        Debt Securities are held by the Trust or the trustee of the Trust, such
        supplemental indenture shall not be effective until the holders of a majority
        in
        aggregate liquidation amount of the outstanding Capital Securities shall
        have
        consented to such supplemental indenture; provided, further, that if the
        consent
        of the Securityholder of each outstanding Debt Security is required, such
        supplemental indenture shall not be effective until each holder of the
        outstanding Capital Securities shall have consented to such supplemental
        indenture. 

      

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

      

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

      

      
        
           

        

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

      

      Section
        9.03 Effect
        of Supplemental Indentures.
        

      

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

      

      Section
        9.04 Notation
        on Debt Securities.
        

      

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

      

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

      

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

      

      ARTICLE
        X

      REDEMPTION
        OF SECURITIES

      

      Section
        10.01 Optional
        Redemption.
        

      

      The
        Company shall have the right, subject to the receipt by the Company of the
        prior
        approval from the Federal Reserve, if then required under applicable capital
        guidelines or policies of the Federal Reserve, to redeem the Debt Securities,
        in
        whole or (provided that all accrued and unpaid interest has been paid on
        all
        Debt Securities for all Interest Periods terminating on or prior to such
        date)
        from time to time in part, on any Interest Payment Date on or after February
        23,
        2011 (each, an “Optional Redemption Date”), at the Optional Redemption Price.

      

      
        
           

        

        
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      Section
        10.02 Special
        Event Redemption.

      

      If
        a
        Special Event shall occur and be continuing, the Company shall have the right,
        subject to the receipt by the Company of prior approval from the Federal
        Reserve, if then required under applicable capital guidelines or policies
        of the
        Federal Reserve, to redeem the Debt Securities, in whole but not in part,
        at any
        time within 90 days following the occurrence of such Special Event (the “Special
        Redemption Date”), at the Special Redemption Price. 

      

      Section
        10.03 Notice
        of Redemption; Selection of Debt Securities.

      

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

      

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

      

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

      

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

      

      
        
           

        

        
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      Section
        10.04 Payment
        of Debt Securities Called for Redemption.
        

      

      If
        notice
        of redemption has been given as provided in Section 10.03, the Debt Securities
        or portions of Debt Securities with respect to which such notice has been
        given
        shall become due and payable on the related Optional Redemption Date or Special
        Redemption Date (as the case may be) and at the place or places stated in
        such
        notice at the applicable price therefor, together with unpaid interest accrued
        thereon to said Optional Redemption Date or the Special Redemption Date (as
        the
        case may be), and on and after said Optional Redemption Date or the Special
        Redemption Date (as the case may be) (unless the Company shall default in
        the
        payment of such Debt Securities at the redemption price, together with unpaid
        interest accrued thereon to said date) interest on the Debt Securities or
        portions of Debt Securities so called for redemption shall cease to accrue.
        On
        presentation and surrender of such Debt Securities at a place of payment
        specified in said notice, such Debt Securities or the specified portions
        thereof
        shall be paid and redeemed by the Company at the applicable price therefor,
        together with unpaid interest, if any, accrued thereon to said Optional
        Redemption Date or the Special Redemption Date (as the case may be);
provided,
        however,
        that
        interest payable on any Interest Payment Date on or prior to said Optional
        Redemption Date or the Special Redemption Date will be paid to the holders
        on
        the relevant regular record date. 

      

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

      

      ARTICLE
        XI

      CONSOLIDATION,
        MERGER, SALE, CONVEYANCE AND LEASE

      

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

      

      Nothing
        contained in this Indenture or in the Debt Securities shall prevent any
        consolidation or merger of the Company with or into any other corporation
        or
        corporations (whether or not affiliated with the Company) or successive
        consolidations or mergers in which the Company or its successor or successors
        shall be a party or parties, or shall prevent any sale, conveyance, transfer
        or
        other disposition of all or substantially all of the property or capital
        stock
        of the Company or its successor or successors to any other corporation (whether
        or not affiliated with the Company or its successor or successors) authorized
        to
        acquire and operate the same; provided,
        however,
        that
        the Company hereby covenants and agrees that (i) upon any such
        consolidation, merger (where the Company is not the surviving corporation),
        sale, conveyance, transfer or other disposition, the successor entity shall
        be a
        corporation organized and existing under the laws of the United States or
        any
        state thereof or the District of Columbia (unless such corporation has
        (1) agreed to make all payments due in respect of the Debt Securities or,
        if outstanding, the Trust Securities and the Capital Securities Guarantee
        without withholding or deduction for, or on account of, any taxes, duties,
        assessments or other governmental charges under the laws or regulations of
        the
        jurisdiction of organization or residence (for tax purposes) of such corporation
        or any political subdivision or taxing authority thereof or therein unless
        required by applicable law, in which case such corporation shall have agreed
        to
        pay such additional amounts as shall be required so that the net amounts
        received and retained by the holders of such Debt Securities or Trust
        Securities, as the case may be, after payment of all taxes (including
        withholding taxes), duties, assessments or other governmental charges, will
        be
        equal to the amounts that such holders would have received and retained had
        no
        such taxes (including withholding taxes), duties, assessments or other
        governmental charges been imposed, (2) irrevocably and unconditionally
        consented and submitted to the jurisdiction of any United States federal
        court
        or New York state court, in each case located in the Borough of Manhattan,
        The
        City of New York, in respect of any action, suit or proceeding against it
        arising out of or in connection with this Indenture, the Debt Securities,
        the
        Capital Securities Guarantee or the Declaration and irrevocably and
        unconditionally waived, to the fullest extent permitted by law, any objection
        to
        the laying of venue in any such court or that any such action, suit or
        proceeding has been brought in an inconvenient forum and (3) irrevocably
        appointed an agent in The City of New York for service of process in any
        action,
        suit or proceeding referred to in clause (2) above) and such corporation
        expressly assumes all of the obligations of the Company under the Debt
        Securities, this Indenture, the Capital Securities Guarantee and the Declaration
        and (ii) after giving effect to any such consolidation, merger, sale,
        conveyance, transfer or other disposition, no Default or Event of Default
        shall
        have occurred and be continuing. 

      

      
        
           

        

        
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      Section
        11.02 Successor
        Entity to be Substituted.
        

      

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

      

      
        
           

        

        
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      Section
        11.03 Opinion
        of Counsel to be Given to Trustee.
        

      

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

      

      ARTICLE
        XII

      SATISFACTION
        AND DISCHARGE OF INDENTURE

      

      Section
        12.01 Discharge
        of Indenture.

      

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

      

      
        
           

        

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

      

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

      

      Section
        12.03 Paying
        Agent to Repay Moneys Held.

      

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

      

      Section
        12.04 Return
        of Unclaimed Moneys.
        

      

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

      

      ARTICLE
        XIII

      IMMUNITY
        OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

      

      Section
        13.01 Indenture
        and Debt Securities Solely Corporate Obligations.
        

      

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

      

      
        
           

        

        
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      ARTICLE
        XIV

      MISCELLANEOUS
        PROVISIONS

      

      Section
        14.01 Successors.
        

      

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

      

      Section
        14.02 Official
        Acts by Successor Entity.
        

      

      Any
        act
        or proceeding by any provision of this Indenture authorized or required to
        be
        done or performed by any board, committee or officer of the Company shall
        and
        may be done and performed with like force and effect by the like board,
        committee, officer or other authorized Person of any entity that shall at
        the
        time be the lawful successor of the Company. 

      

      Section
        14.03 Surrender
        of Company Powers.
        

      

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

      

      Section
        14.04 Addresses
        for Notices, etc.
        

      

      Any
        notice or demand which by any provision of this Indenture is required or
        permitted to be given or served by the Trustee or by the Securityholders
        on the
        Company may be given or served in writing by being deposited postage prepaid
        by
        registered or certified mail in a post office letter box addressed (until
        another address is filed by the Company with the Trustee for such purpose)
        to
        the Company at 2328 West Joppa Road, Suite 325, Baltimore, Maryland 21093,
        Attention: Hugh W. Mohler. Any notice, direction, request or demand by any
        Securityholder or the Company to or upon the Trustee shall be deemed to have
        been sufficiently given or made, for all purposes, if given or made in writing
        at the office of Wilmington Trust Company at Rodney Square North, 1100 North
        Market Street, Wilmington, DE 19890-0001, Attention: Corporate Capital Markets.
        

      

      Section
        14.05 Governing
        Law.
        

      

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

      

      Section
        14.06 Evidence
        of Compliance with Conditions Precedent.
        

      

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

      

      
        
           

        

        
          56

          
            

          

        

        
           

        

      

      Each
        certificate or opinion provided for in this Indenture and delivered to the
        Trustee with respect to compliance with a condition or covenant provided
        for in
        this Indenture (except certificates delivered pursuant to Section 3.05) shall
        include (a) a statement that the person making such certificate or opinion
        has read such covenant or condition and the definitions relating thereto;
        (b) a brief statement as to the nature and scope of the examination or
        investigation upon which the statements or opinions contained in such
        certificate or opinion are based; (c) a statement that, in the opinion of
        such person, he or she has made such examination or investigation as is
        necessary to enable him or her to express an informed opinion as to whether
        or
        not such covenant or condition has been complied with; and (d) a statement
        as to whether or not, in the opinion of such person, such condition or covenant
        has been complied with. 

      

      Section
        14.07 Business
        Day Convention.

      

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

      

      Section
        14.08 Table
        of Contents, Headings, etc.
        

      

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

      

      Section
        14.09 Execution
        in Counterparts.
        

      

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

      

      Section
        14.10 Separability.
        

      

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

      

      
        
           

        

        
          57

          
            

          

        

        
           

        

      

      Section
        14.11 Assignment.
        

      

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

      

      Section
        14.12 Acknowledgment
        of Rights.
        

      

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

      

      ARTICLE
        XV

      SUBORDINATION
        OF DEBT SECURITIES

      

      Section
        15.01 Agreement
        to Subordinate.

      

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

      

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

      

      
        
           

        

        
          58

          
            

          

        

        
           

        

      

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

      

      Section
        15.02 Default
        on Senior Indebtedness.
        

      

      In
        the
        event and during the continuation of any default by the Company in the payment
        of principal, premium, interest or any other amount due on any Senior
        Indebtedness of the Company following any applicable grace period, or in
        the
        event that the maturity of any Senior Indebtedness of the Company has been
        accelerated because of a default, and such acceleration has not been rescinded
        or canceled and such Senior Indebtedness has not been paid in full, then,
        in
        either case, no payment shall be made by the Company with respect to the
        payments due on the Debt Securities. 

      

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

      

      Section
        15.03 Liquidation;
        Dissolution; Bankruptcy.
        

      

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

      

      
        
           

        

        
          59

          
            

          

        

        
           

        

      

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

      

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

      

      Section
        15.04 Subrogation.
        

      

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

      

      
        
           

        

        
          60

          
            

          

        

        
           

        

      

      Nothing
        contained in this Article XV or elsewhere in this Indenture, any Additional
        Provisions or in the Debt Securities is intended to or shall impair, as between
        the Company, its creditors other than the holders of Senior Indebtedness
        of the
        Company, and the holders of the Debt Securities, the obligation of the Company,
        which is absolute and unconditional, to pay to the holders of the Debt
        Securities all payments on the Debt Securities as and when the same shall
        become
        due and payable in accordance with their terms, or is intended to or shall
        affect the relative rights of the holders of the Debt Securities and creditors
        of the Company other than the holders of Senior Indebtedness of the Company,
        nor
        shall anything herein or therein prevent the Trustee or the holder of any
        Debt
        Security from exercising all remedies otherwise permitted by applicable law
        upon
        default under this Indenture, subject to the rights, if any, under this
        Article XV of the holders of such Senior Indebtedness in respect of cash,
        property or securities of the Company received upon the exercise of any such
        remedy. 

      

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

      

      Section
        15.05 Trustee
        to Effectuate Subordination.
        

      

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

      

      Section
        15.06 Notice
        by the Company.
        

      

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

      

      
        
           

        

        
          61

          
            

          

        

        
           

        

      

      The
        Trustee, subject to the provisions of Article VI of this Indenture, shall
        be
        entitled to conclusively rely on the delivery to it of a written notice by
        a
        Person representing himself or herself to be a holder of Senior Indebtedness
        of
        the Company (or a trustee or representative on behalf of such holder) to
        establish that such notice has been given by a holder of such Senior
        Indebtedness or a trustee or representative on behalf of any such holder
        or
        holders. In the event that the Trustee determines in good faith that further
        evidence is required with respect to the right of any Person as a holder
        of such
        Senior Indebtedness to participate in any payment or distribution pursuant
        to
        this Article XV, the Trustee may request such Person to furnish evidence
        to the
        reasonable satisfaction of the Trustee as to the amount of such Senior
        Indebtedness held by such Person, the extent to which such Person is entitled
        to
        participate in such payment or distribution and any other facts pertinent
        to the
        rights of such Person under this Article XV, and, if such evidence is not
        furnished, the Trustee may defer any payment to such Person pending judicial
        determination as to the right of such Person to receive such payment.

      

      Section
        15.07 Rights
        of the Trustee; Holders of Senior Indebtedness.
        

      

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

      

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

      

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

      

      
        
           

        

        
          62

          
            

          

        

        
           

        

      

      Section
        15.08 Subordination
        May Not Be Impaired.

      

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

      

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

      

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

      

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

       

      

        
          	 	
                  BAY
                    NATIONAL CORPORATION

                
	 	 	 
	 	 	 
	 	
                  By:

                	
                  /s/
                    Hugh W. Mohler

                
	
                   

                	 	
                  Name:
                    Hugh W. Mohler

                
	
                   

                	 	
                  Title:
                    President

                
	 	 	 
	 	 	 
	 	
                  WILMINGTON
                    TRUST COMPANY, 

                
	
                   

                	 	
                  As
                    Trustee

                
	 	 	 
	 	 	 
	 	
                  By:

                	
                  /s/
                    Denise M. Geran

                
	
                   

                	 	
                  Name:
                    Denise M. Geran

                
	
                   

                	 	
                  Title:
                    Vice President

                

        

      

      

      
        
           

        

        
          63

          
            

          

        

        
           

        

      

      Exhibit
        A

      

      Form
        of
        Debt Security

      

      

      

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

          
          

        

      

      EXHIBIT
        A

      

      FORM
        OF DEBT SECURITY

      

      [FORM
        OF
        FACE OF SECURITY]

      

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

      

      UNLESS
        THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE
        COMPANY
        OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
        SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
        NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
        IS
        MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
        REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
        OR
        OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
        HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]1 

      

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

      
        

          

          
            1
              Only
              applicable if this Debt Security is a Global Debt
              Security.

          

        

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

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

      

      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

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

      

      THIS
        SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS
        OF
        $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER
        OF
        THIS SECURITY IN DENOMINATIONS OF LESS THAN $100,000 SHALL BE DEEMED TO BE
        VOID
        AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE
        DEEMED
        NOT TO BE THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN
        FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS
        ON
        THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE
        SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY OR ANY INTEREST
        OR PARTICIPATION HEREIN. 

      

      THIS
        OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
        AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
        CORPORATION (THE “FDIC”). THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE
        DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY,
        IS
        INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES
        AND IS NOT SECURED. 

      

      Fixed
        Rate Junior Subordinated Debt Security due 2036 of

      BAY
        NATIONAL CORPORATION

      

      Bay
        National Corporation, a bank holding company incorporated in the State of
        Maryland (the “Company”, which term includes any successor permitted under the
        Indenture (as defined herein)), for value received, promises to pay to
        Wilmington Trust Company, not in its individual capacity but solely as
        Institutional Trustee for Bay National Capital Trust I, a Delaware statutory
        trust, or registered assigns, the principal amount of EIGHT MILLION TWO HUNDRED
        FORTY-EIGHT THOUSAND Dollars ($8,248,000) on February 23, 2036 (the “Maturity
        Date”) (or any Optional Redemption Date or the Special Redemption Date, each as
        defined herein, or any earlier date of acceleration of the maturity of this
        Debt
        Security), and to pay interest on the outstanding principal amount of this
        Debt
        Security from December 12, 2005, or from the most recent Interest Payment
        Date
        (as defined below) to which interest has been paid or duly provided for,
        quarterly (subject to deferral as set forth herein) in arrears on February
        23,
        May 23, August 23 and November 23 of each year, commencing on February 23,
        2006
        (each, an “Interest Payment Date”), at a fixed rate per annum equal to 7.20%
        (the “Interest Rate”) until the principal hereof shall have been paid or duly
        provided for, and on any overdue principal and (without duplication and to
        the
        extent that payment of such interest is enforceable under applicable law)
        on any
        overdue installment of interest at an annual rate equal to the Interest Rate,
        compounded quarterly. The amount of interest payable for any Interest Period
        shall be computed on the basis of a 360-day year consisting of twelve 30-day
        months. 

      

      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      
        
           

        

        
          A-4

          
            

          

        

        
           

        

      

      So
        long
        as no Event of Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or
        (i)
        of the Indenture has occurred and is continuing, the Company shall have the
        right, from time to time and without causing an Event of Default, to defer
        payments of interest on the Debt Securities by extending the interest payment
        period on the Debt Securities at any time and from time to time during the
        term
        of the Debt Securities, for up to 20 consecutive quarterly periods (each
        such
        extended interest payment period, together with all previous and further
        consecutive extensions thereof, is referred to herein as an “Extension Period”).
        No Extension Period may end on a date other than an Interest Payment Date
        or
        extend beyond the Maturity Date, any Optional Redemption Date or the Special
        Redemption Date, as the case may be. During any Extension Period, interest
        will
        continue to accrue on the Debt Securities, and interest on such accrued interest
        (such accrued interest and interest thereon referred to herein as “Deferred
        Interest”) will accrue at an annual rate equal to the Interest Rate compounded
        quarterly from the date such Deferred Interest would have been payable were
        it
        not for the Extension Period, to the extent permitted by applicable law.
        No
        interest or Deferred Interest (except any Additional Amounts (as defined
        in the
        Indenture) that may be due and payable) shall be due and payable during an
        Extension Period, except at the end thereof. At the end of any Extension
        Period,
        the Company shall pay all Deferred Interest then accrued and unpaid on the
        Debt
        Securities; provided,
        however,
        that
        during any Extension Period, the Company may not (i) declare or pay any
        dividends or distributions on, or redeem, purchase, acquire, or make a
        liquidation payment with respect to, any of the Company’s capital stock,
        (ii) make any payment of principal of or premium, if any, or interest on or
        repay, repurchase or redeem any debt securities of the Company that rank
        pari
        passu
        in all
        respects with or junior in interest to the Debt Securities or (iii) make
        any payment under any guarantees of the Company that rank in all respects
        pari
        passu
        with or
        junior in respect to the Capital Securities Guarantee (other than
        (a) repurchases, redemptions or other acquisitions of shares of capital
        stock of the Company (A) in connection with any employment contract,
        benefit plan or other similar arrangement with or for the benefit of one
        or more
        employees, officers, directors or consultants, (B) in connection with a
        dividend reinvestment or stockholder stock purchase plan or (C) in
        connection with the issuance of capital stock of the Company (or securities
        convertible into or exercisable for such capital stock), as consideration
        in an
        acquisition transaction entered into prior to such Extension Period, (b) as
        a result of any exchange or conversion of any class or series of the Company’s
        capital stock (or any capital stock of a subsidiary of the Company) for any
        class or series of the Company’s capital stock or of any class or series of the
        Company’s indebtedness for any class or series of the Company’s capital stock,
        (c) the purchase of fractional interests in shares of the Company’s capital
        stock pursuant to the conversion or exchange provisions of such capital stock
        or
        the security being converted or exchanged, (d) any declaration of a
        dividend in connection with any stockholder’s rights plan, or the issuance of
        rights, stock or other property under any stockholder’s rights plan, or the
        redemption or repurchase of rights pursuant thereto or (e) any dividend in
        the form of stock, warrants, options or other rights where the dividend stock
        or
        the stock issuable upon exercise of such warrants, options or other rights
        is
        the same stock as that on which the dividend is being paid or ranks pari
        passu
        with or
        junior to such stock). Prior to the termination of any Extension Period,
        the
        Company may further extend such Extension Period, provided,
        that no
        Extension Period (including all previous and further consecutive extensions
        that
        are part of such Extension Period) shall exceed 20 consecutive quarterly
        periods. Upon the termination of any Extension Period and upon the payment
        of
        all Deferred Interest, the Company may commence a new Extension Period, subject
        to the foregoing requirements. The Company must give the Trustee notice of
        its
        election to begin or extend an Extension Period no later than the close of
        business on the fifteenth Business Day prior to the applicable Interest Payment
        Date. The indebtedness evidenced by this Debt Security is, to the extent
        provided in the Indenture, subordinate and junior in right of payment to
        the
        prior payment in full of all Senior Indebtedness (as defined in the Indenture),
        and this Debt Security is issued subject to the provisions of the Indenture
        with
        respect thereto. Each holder of this Debt Security, by accepting the same,
        (a) agrees to and shall be bound by such provisions, (b) authorizes
        and directs the Trustee on such holder’s behalf to take such action as may be
        necessary or appropriate to acknowledge or effectuate the subordination so
        provided and (c) appoints the Trustee such holder’s attorney-in-fact for
        any and all such purposes. Each holder hereof, by such holder’s acceptance
        hereof, hereby waives all notice of the acceptance of the subordination
        provisions contained herein and in the Indenture by each holder of Senior
        Indebtedness, whether now outstanding or hereafter incurred, and waives reliance
        by each such holder upon said provisions. 

      

      
        
           

        

        
          A-5

          
            

          

        

        
           

        

      

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

      

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

      

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

      

      This
        Debt
        Security may contain more than one counterpart of the signature page and
        this
        Debt Security may be executed and authenticated by the affixing of the signature
        of a proper officer of the Company, and the signature of the Trustee providing
        authentication, to any of such counterpart signature pages. All of such
        counterpart signature pages shall be read as though one, and they shall have
        the
        same force and effect as though the Company had executed, and the Trustee
        had
        authenticated, a single signature page. 

      
        
           

        

        
          A-6

          
            

          

        

        
           

        

      

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

      

      BAY
        NATIONAL CORPORATION

      

      

      By:____________________________________________

      Name:

      Title:

      

      

      Dated:____________________________,
        ______

      

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        certificate represents Debt Securities referred to in the within-mentioned
        Indenture.

      

      WILMINGTON
        TRUST COMPANY,

      not
        in
        its individual capacity but solely as the Trustee

      

      

      By:________________________________________________

      Authorized
        Officer

      

      

      

      Dated:____________________________,
        ______

      

      
        
           

        

        
          A-7

          
            

          

        

        
           

        

      

      [FORM
        OF
        REVERSE OF SECURITY]

      

      

      This
        Debt
        Security is one of a duly authorized series of debt securities of the Company
        (collectively, the “Debt Securities”), all issued or to be issued pursuant to an
        Indenture (the “Indenture”), dated as of December 12, 2005, duly executed and
        delivered between the Company and Wilmington Trust Company, as Trustee (the
        “Trustee”), to which Indenture and all indentures supplemental thereto reference
        is hereby made for a description of the rights, limitations of rights,
        obligations, duties and immunities thereunder of the Trustee, the Company
        and
        the holders of the Debt Securities of which this Debt Security is a part.
        

      

      Upon
        the
        occurrence and continuation of a Tax Event, an Investment Company Event or
        a
        Capital Treatment Event (each, a “Special Event”), the Company shall have the
        right to redeem this Debt Security, at its option, in whole with all other
        Debt
        Securities but not in part, at any time, within 90 days following the occurrence
        of such Special Event (the “Special Redemption Date”), at the Special Redemption
        Price (as defined herein). 

      

      The
        Company shall also have the right to redeem this Debt Security at its option,
        in
        whole or (provided that all accrued and unpaid interest has been paid on
        all
        Debt Securities for all Interest Periods terminating on or prior to such
        date)
        from time to time in part, on any Interest Payment Date on or after February
        23,
        2011 (each, an “Optional Redemption Date”), at the Optional Redemption Price (as
        defined herein). 

      

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

      

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

      

      “Special
        Redemption Price” means, with respect to the redemption of this Debt Security
        following a Special Event, an amount in cash equal to 104.00% of the principal
        amount of this Debt Security to be redeemed prior to February 23, 2007 and
        thereafter equal to the percentage of the principal amount of this Debt Security
        that is specified below for the Special Redemption Date plus, in each case,
        unpaid interest accrued thereon to the Special Redemption Date: 

      

      
        
           

        

        
          A-8

          
            

          

        

        
           

        

      

      
        	
                Special
                  Redemption During the 12-Month

                Period
                  Beginning February 23

              	
                Percentage
                  of Principal Amount

              
	 	 
	
                2007

              	
                103.20%

              
	
                2008

              	
                102.40%

              
	
                2009

              	
                101.60%

              
	
                2010

              	
                100.80%

              
	
                2011
                  and thereafter

              	
                100.00%

              

      

      

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

      

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

      

      
        
           

        

        
          A-9

          
            

          

        

        
           

        

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

      
        
           

        

        
          A-10

          
            

          

        

        
           

        

      

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

      

      

      
        
           

        

        
          A-11

          
            

          

        

        
           

        

      

      Exhibit
        B

      

      Form
        of
        Certificate of Officer of the Company

      

      

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

          
          

        

      

      EXHIBIT
        B

      FORM
        OF CERTIFICATE OF OFFICER OF THE COMPANY

      

      

      Pursuant
        to Section 3.05 of the Indenture, dated as of December 12, 2005 (as amended
        or
        supplemented from time to time, the “Indenture”), between Bay National
        Corporation, as issuer (the “Company”), and Wilmington Trust Company, as
        trustee, the undersigned certifies that he/she is a [principal executive
        officer, principal financial officer or principal accounting officer] of
        the
        Company and in the course of the performance by the undersigned of his/her
        duties as an officer of the Company, the undersigned would normally have
        knowledge of any default by the Company in the performance of any covenants
        contained in the Indenture, and the undersigned hereby further certifies
        that
        he/she has no knowledge of any default for the fiscal year ending on ,20
        [,
        except as follows: specify each such default and the nature thereof].

      

      Capitalized
        terms used herein, and not otherwise defined herein, have the respective
        meanings assigned thereto in the Indenture. 

      

      IN
        WITNESS WHEREOF, the undersigned has executed this Certificate as of __________,
        20__.

      

      

      
        	 	
                 

              
	 	
                Name:

              
	 	
                Title:

              

      

    

     

     

    B-1Unassociated Document

    Exhibit
      4.4

    AMENDED
      AND RESTATED DECLARATION OF TRUST

    

    OF

    

    BAY
      NATIONAL CAPITAL TRUST I

    

    Dated
      as of December 12,
      2005

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    

    
      	 	
              Page

            
	
              ARTICLE
                I INTERPRETATION AND DEFINITIONS

            	
              1

            
	
              ARTICLE
                II ORGANIZATION

            	
              10

            
	
              ARTICLE
                III SPONSOR

            	
              24

            
	
              ARTICLE
                IV TRUSTEES AND ADMINISTRATORS

            	
              25

            
	
              ARTICLE
                V DISTRIBUTIONS

            	
              30

            
	
              ARTICLE
                VI ISSUANCE OF SECURITIES

            	
              30

            
	
              ARTICLE
                VII DISSOLUTION AND TERMINATION OF TRUST

            	
              37

            
	
              ARTICLE
                VIII TRANSFER OF INTERESTS

            	
              38

            
	
              ARTICLE
                IX LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR
                OTHERS

            	
              44

            
	
              ARTICLE
                X ACCOUNTING

            	
              50

            
	
              ARTICLE
                XI AMENDMENTS AND MEETINGS

            	
              52

            
	
              ARTICLE
                XII REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE
                TRUSTEE

            	
              55

            
	
              ARTICLE
                XIII MISCELLANEOUS

            	
              57

            

    

    

    

    ANNEXES
      AND EXHIBITS

    

    
      	
              ANNEX
                I

            	
              Terms
                of Capital Securities and Common Securities

            
	
              EXHIBIT
                A-1

            	
              Form
                of Capital Security Certificate

            
	
              EXHIBIT
                A-2

            	
              Form
                of Common Security Certificate

            
	
              EXHIBIT
                B

            	
              Form
                of Administrator’s Certificate of the Trust

            
	
              EXHIBIT
                C

            	
              Form
                of Transferee Certificate to be Executed by Accredited
                Investors

            
	
              EXHIBIT
                D

            	
              Form
                of Transferor Certificate to be Executed for QIBs

            
	
              EXHIBIT
                E

            	
              Form
                of Transferee Certificate to be Executed by Non-U.S.
                Persons

            

    

    

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    AMENDED
      AND RESTATED DECLARATION OF TRUST

    

    OF

    

    BAY
      NATIONAL CAPITAL TRUST I

    

    December
      12, 2005

    

    AMENDED
      AND RESTATED DECLARATION OF TRUST (as amended or supplemented from time to
      time
      in accordance with the terms hereof, this “Declaration”), dated and effective as
      of December 12, 2005, by the Trustees (as defined herein), the Administrators
      (as defined herein), the Sponsor (as defined herein) and the holders from time
      to time of undivided beneficial interests in the assets of the Trust (as defined
      herein) to be issued pursuant to this Declaration.

    

    WHEREAS,
      certain of the Trustees and the Sponsor established Bay National Capital Trust
      I
      (the “Trust”), a statutory trust under the Statutory Trust Act (as defined
      herein), pursuant to a Declaration of Trust, dated as of December 6, 2005 (the
      “Original Declaration”), and a Certificate of Trust filed with the Secretary of
      State of the State of Delaware on December 6, 2005, for the sole purpose of
      issuing and selling the Securities (as defined herein) representing undivided
      beneficial interests in the assets of the Trust, investing the proceeds thereof
      in the Debentures (as defined herein) of the Debenture Issuer (as defined
      herein) and engaging in those activities necessary, advisable or incidental
      thereto;

    

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

    

    WHEREAS,
      all of the Trustees, the Administrators and the Sponsor, by this Declaration,
      amend and restate each and every term and provision of the Original
      Declaration.

    

    NOW,
      THEREFORE, it being the intention of the parties hereto to continue the Trust
      as
      a statutory trust under the Statutory Trust Act and that this Declaration
      constitutes the governing instrument of such statutory trust, and that all
      assets contributed to the Trust will be held in trust for the benefit of the
      holders, from time to time, of the Securities, subject to the provisions of
      this
      Declaration, and, in consideration of the mutual covenants contained herein
      and
      other good and valuable consideration, the receipt of which is hereby
      acknowledged, the parties, intending to be legally bound hereby, amend and
      restate in its entirety the Original Declaration and agree as
      follows:

    

    ARTICLE
      I   

    INTERPRETATION
      AND DEFINITIONS

    

    Section
      1.1.  Definitions.
      Unless
      the context otherwise requires:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a)  capitalized
      terms used in this Declaration but not defined in the preamble above or
      elsewhere herein have the respective meanings assigned to them in this Section
      1.1 or, if not defined in this Section 1.1 or elsewhere herein, in the
      Indenture;

    

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

    

    (c)  all
      references to “the Declaration’’ or “this Declaration” are to this Declaration
      and each Annex and Exhibit hereto, as modified, supplemented or amended from
      time to time;

    

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

    

    (e)  a
      term
      defined in the Trust Indenture Act (as defined herein) has the same meaning
      when
      used in this Declaration unless otherwise defined in this Declaration or unless
      the context otherwise requires; and

    

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

    

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

    

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

    

    “Administrators”
      means each of Hugh W. Mohler, Mark A. Semanie and Warren F. Boutilier, solely
      in
      such Person’s capacity as Administrator of the Trust continued hereunder and not
      in such Person’s individual capacity, or such Administrator’s successor in
      interest in such capacity, or any successor appointed as herein
      provided.

    

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

    

    “Applicable
      Depositary Procedures” means, with respect to any transfer or transaction
      involving a Book-Entry Capital Security, the rules and procedures of the
      Depositary for such Book-Entry Capital
      Security, in each case to the extent applicable to such transaction and as
      in
      effect from time to time.

    

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

    

    “Bankruptcy
      Event” means, with respect to any Person:

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    “Beneficial
      Owner” means each Person who is the beneficial owner of Book-Entry Capital
      Securities as reflected in the records of the Depositary or, if a Depositary
      Participant is not the beneficial owner, then the beneficial owner as reflected
      in the records of the applicable Depositary Participant.

    

    “Book-Entry
      Capital Security” means a Capital Security the ownership and transfers of which
      shall be reflected and made, as applicable, through book entries by the
      Depositary.

    

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

    

    “Capital
      Securities” has the meaning set forth in Section 6.1 (a).

    

    “Capital
      Security Certificate” means a definitive Certificate registered in the name of
      the Holder representing a Capital Security substantially in the form of Exhibit
      A-1.

    

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

    

    “Certificate”
      means any certificate evidencing Securities.

    

    “Certificate
      of Trust” means the certificate of trust filed with the Secretary of State of
      the State of Delaware with respect to the Trust, as amended and restated from
      time to

    time.

    

    “Closing
      Date” has the meaning set forth in the Purchase Agreement.

    

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

    

    “Commission”
      means the United States Securities and Exchange Commission.

    

    “Common
      Securities” has the meaning set forth in Section 6.1(a).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Common
      Security Certificate” means a definitive Certificate registered in the name of
      the Holder representing a Common Security substantially in the form of Exhibit
      A-2.

    

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

    

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

    

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

    

    “Covered
      Person” means (a) any Administrator, officer, director, shareholder, partner,
      member, representative, employee or agent of the Trust or the Trust’s Affiliates
      or (b) any Holder of Securities.

    

    “Debenture
      Issuer” means Bay National Corporation, a bank holding company incorporated in
      the State of Maryland, in its capacity as issuer of the Debentures under the
      Indenture, and any permitted successor under the Indenture.

    

    “Debenture
      Trustee” means Wilmington Trust Company, a Delaware banking corporation, not in
      its individual capacity but solely as trustee under the Indenture until a
      successor is appointed thereunder, and thereafter means such successor
      trustee.

    

    “Debentures”
      means the Fixed Rate Junior Subordinated Debt Securities due 2036 to be issued
      by the Debenture Issuer under the Indenture.

    

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

    

    “Deferred
      Interest” means any interest on the Debentures that would have been overdue and
      unpaid for more than one Distribution Payment Date but for the imposition of
      an
      Extension Period, and the interest that shall accrue (to the extent that the
      payment of such interest is legally enforceable) on such interest at the Coupon
      Rate, compounded quarterly from the date on which such Deferred Interest would
      otherwise have been due and payable until paid or made available for
      payment.

    

    “Definitive
      Capital Securities” means any Capital Securities in definitive form issued by
      the Trust.

    

    “Delaware
      Trustee” has the meaning set forth in Section 4.2.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    “Direct
      Action” has the meaning set forth in Section 2.8(e).

    

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

    

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

    

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

    

    “DTC”
      means The Depository Trust Company or any successor thereto.

    

    “Event
      of
      Default” means the occurrence of an Indenture Event of Default.

    

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended from time to time, or
      any successor legislation.

    

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

    

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

    

    “Fiduciary
      Indemnified Person” shall mean each of the Institutional Trustee (including in
      its individual capacity), the Delaware Trustee (including in its individual
      capacity), any Affiliate of the Institutional Trustee or the Delaware Trustee,
      and any officers, directors, shareholders, members, partners, employees,
      representatives, custodians, nominees or agents of the Institutional Trustee
      or
      the Delaware Trustee.

    

    “Fiscal
      Year” has the meaning set forth in Section 10.1.

    

    “Global
      Capital Security” means a global Certificate evidencing ownership of Book-Entry
      Capital Securities.

    

    “Guarantee”
      means the Guarantee Agreement, dated as of the Closing Date, of the Sponsor
      (the
“Guarantor”) in respect of the Capital Securities.

    

    “Holder”
      means a Person in whose name a Certificate representing a Security is registered
      on the Securities Register maintained by or on behalf of the Registrar, such
      Person being a beneficial owner within the meaning of the Statutory Trust
      Act.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Indemnified
      Person” means a Company Indemnified Person or a Fiduciary Indemnified
      Person.

    

    “Indenture”
      means the Indenture, dated as of the Closing Date, between the Debenture Issuer
      and the Debenture Trustee, and any indenture supplemental thereto pursuant
      to
      which the Debentures are to be issued.

    

    “Indenture
      Event of Default” means an “Event of Default” as defined in the
      Indenture.

    

    “Institutional
      Trustee” means the Trustee meeting the eligibility requirements set forth in
      Section 4.3.

    

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

    

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

    

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

    

    “Legal
      Action” has the meaning set forth in Section 2.8(e).

    

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

    

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

    

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

    

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

    

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

    

    “Officers’
      Certificate” means, with respect to any Person, a certificate signed by two
      Authorized Officers of such Person or, in the case of a natural Person, such
      Person. Any Officers’ Certificate delivered with respect to compliance with a
      condition or covenant provided for in this Declaration shall
      include:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) a
      statement that each Authorized Officer or Person, as the case may be, signing
      the Officers’ Certificate has read the covenant or condition and the definitions
      relating thereto;

    

    (b) a
      brief
      statement of the nature and scope of the examination or investigation undertaken
      by each Authorized Officer or Person, as the case may be, in rendering the
      Officers’ Certificate;

    

    (c) a
      statement that each Authorized Officer or Person, as the case may be, has made
      such examination or investigation as, in his or her opinion, is necessary to
      enable such Authorized Officer or Person, as the case may be, to express an
      informed opinion as to whether or not such covenant or condition has been
      complied with; and

    

    (d) a
      statement as to whether, in the opinion of each Authorized Officer or Person,
      as
      the case may be, such condition or covenant has been complied with.

    

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

    

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

    

    “Paying
      Agent” has the meaning set forth in Section 612.

    

    “Payment
      Amount” has the meaning set forth in Section 5.1.

    

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

    

    “Purchase
      Agreement” means the Purchase relating to the offer and sale of Capital
      Securities.

    

    “PORTAL”
      has the meaning set forth in Section 2.6(a)(i).

    

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

    

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

    

    “Purchaser”
      has the meaning set forth in the Purchase Agreement.

    

    “QIB”
      means a “qualified institutional buyer” as defined under Rule 144A.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    “Registrar”
      has the meaning set forth in Section 6.2.

    

    “Relevant
      Trustee” has the meaning set forth in Section 4.5(a).

    

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

    

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

    

    “Restricted
      Securities Legend” has the meaning set forth in Section 8.2©.

    

    “Rule
      144A” means Rule 144A under the Securities Act.

    

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

    

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

    

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

    

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

    

    “Securities
      Register” has the meaning set forth in Section 6.2(a).

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Sponsor”
      means Bay National Corporation, a bank holding company that is incorporated
      in
      the State of Maryland, or any permitted successor of the Debenture Issuer under
      the Indenture, in its capacity as sponsor of the Trust.

    

    “Statutory
      Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §
3801 et seq., as it may be amended from time to time, or any successor
      legislation.

    

    “Successor
      Delaware Trustee” has the meaning set forth in Section 4.5(e).

    

    “Successor
      Entity” has the meaning set forth in Section 2.15(b).

    

    “Successor
      Institutional Trustee” has the meaning set forth in Section 4.5(b).

    

    “Successor
      Securities” has the meaning set forth in Section 2.15(b).

    

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

    

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

    

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

    

    “Transfer
      Agent” has the meaning set forth in Section 6.2.

    

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

    

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

    

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

    

    “Trustee”
      or “Trustees” means each Person who has signed this Declaration as a trustee, so
      long as such Person shall continue in office in accordance with the terms
      hereof, and all other Persons who may from time to time be duly appointed,
      qualified and serving as Trustees in accordance with the provisions hereof,
      and
      references herein to a Trustee or the Trustees shall refer to such Person or
      Persons solely in their capacity as trustees hereunder.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    ARTICLE
      II   

    ORGANIZATION

    

    Section
      2.1.  Name.
      The
      Trust is named “Bay National Capital Trust I,” as such name may be modified from
      time to time by the Administrators following written notice to the Institutional
      Trustee and the Holders of the Securities. The Trust’s activities may be
      conducted under the name of the Trust or any other name deemed advisable by
      the
      Administrators.

    

    Section
      2.2.  Office.
      The
      address of the principal office of the Trust, which shall be in a state of
      the
      United States or the District of Columbia, is 2328 West Joppa Road, Suite 325,
      Baltimore, Maryland 21093. On ten Business Days’ written notice to the
      Institutional Trustee and the Holders of the Securities, the Administrators
      may
      designate another principal office, which shall be in a state of the United
      States or the District of Columbia.

    

    Section
      2.3.  Purpose.
      The
      exclusive purposes and functions of the Trust are (a) to issue and sell the
      Securities representing undivided beneficial interests in the assets of the
      Trust, (b) to invest the gross proceeds from such sale in the Debentures and
      (c)
      except as otherwise limited herein, to engage in only those other activities
      deemed necessary, advisable or incidental thereto by the Institutional Trustee,
      including, without limitation, those activities specified in this Declaration.
      The Trust shall not borrow money, issue debt or reinvest proceeds derived from
      investments, pledge any of its assets, or otherwise undertake (or permit to
      be
      undertaken) any activity that would cause the Trust not to be classified for
      United States federal income tax purposes as a grantor trust.

    

    Section
      2.4.  Authority.
      Except
      as specifically provided in this Declaration, the Institutional Trustee shall
      have exclusive and complete authority to carry out the purposes of the Trust.
      An
      action taken by a Trustee on behalf of the Trust and in accordance with such
      Trustee’s powers shall constitute the act of and serve to bind the Trust. In
      dealing with the Trustees acting on behalf of the Trust, no Person shall be
      required to inquire into the authority of the Trustees to bind the Trust.
      Persons dealing with the Trust are entitled to rely conclusively on the power
      and authority of the Trustees as set forth in this Declaration. The
      Administrators shall have only those ministerial duties set forth herein with
      respect to accomplishing the purposes of the Trust and are not intended to
      be
      trustees or fiduciaries with respect to the Trust or the Holders. The
      Institutional Trustee shall have the right, but shall not be obligated except
      as
      provided in Section 2.6, to perform those duties assigned to the
      Administrators.

    

    Section
      2.5.  Title
      to Property of the Trust.
      Except
      as provided in Section 2.6(g) and Section 2.8 with respect to the Debentures
      and
      the Property Account or as otherwise provided in this Declaration, legal title
      to all assets of the Trust shall be vested in the Trust. The Holders shall
      not
      have legal title to any part of the assets of the Trust, but shall have an
      undivided beneficial interest in the assets of the Trust.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      2.6.  Powers
      and Duties of the Trustees and the Administrators.

    

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

    

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

    

    (A)  the
      issuance and sale of the Securities;

    

    (B)  to
      cause
      the Trust to enter into, and to execute, deliver and perform on behalf of the
      Trust, such agreements as may be necessary or desirable in connection with
      the
      purposes and function of the Trust, including agreements with the Paying Agent,
      a subscription agreement for Debentures between the Trust and the Sponsor,
      a
      subscription agreement for Capital Securities between the Trust and the
      purchaser of the Capital Securities and a subscription agreement for Common
      Securities between the Trust and the Sponsor;

    

    (C)  ensuring
      compliance with the Securities Act and applicable securities or blue sky laws
      of
      states and other jurisdictions;

    

    (D)  if
      and at
      such time determined solely by the Sponsor at the request of the
      Holders,
      assisting
      in the designation of the Capital Securities for trading in the Private
      Offering,
      Resales
      and Trading through the Automatic Linkages (“PORTAL”) system if
      available;

    

    (E)  the
      sending of notices (other
      than
      notices of default) and other information regarding the Securities and the
      Debentures to the Holders in accordance with this Declaration, including notice
      of any notice received from the Debenture Issuer of its election to defer
      payments of interest on the Debentures by extending the interest payment period
      under the Indenture;

    

    (F)  the
      appointment of a Paying Agent,
      Transfer
      Agent and Registrar in accordance with this Declaration;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

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

    

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

    

    (M)  to
      negotiate the terms of, and the execution and delivery of, the Purchase
      Agreement and any other related agreements providing for the sale of the Capital
      Securities or the resale thereof by the Purchaser;

    

    (N)  to
      employ
      or otherwise engage employees, agents (who may be designated as officers with
      titles), managers, contractors, advisors, attorneys and consultants and pay
      reasonable compensation for such services;

    

    (O)  to
      incur
      expenses that are necessary, advisable or incidental to carry out any of the
      purposes of the Trust;

    

    (P)  to
      give
      the certificate, substantially in the form of Exhibit B attached hereto,
      required by § 314(a)(4) of the Trust Indenture Act to the Institutional Trustee,
      which certificate may be executed by an Administrator; and

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    (A)  the
      establishment of the Property Account;

    

    (B)  the
      receipt of the Debentures;

    

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

    

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

    

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

    

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

    

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

    

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

    

    (I)  after
      any
      Event of Default (of which the Institutional Trustee has knowledge (as provided
      in Section 2.10(m) hereof)) (provided,
      that
      such Event of Default is not by or with respect to the Institutional Trustee),
      the taking of any action that the Institutional Trustee may from time to time
      determine is necessary, advisable or incidental for the foregoing to give effect
      to the terms of this Declaration and protect and conserve the Trust Property
      for
      the benefit of the Holders (without consideration of the effect of any such
      action on any particular Holder);

    

    (J)  to
      take
      all action that may be necessary or appropriate for the preservation and the
      continuation of the Trust’s valid existence, rights, franchises and privileges
      as a statutory trust under the laws of the State of Delaware to protect the
      limited liability of the Holders of the Capital Securities or to enable the
      Trust to effect the purposes for which the Trust was created; and

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (K)  to
      undertake any actions set forth in § 317(a) of the Trust Indenture
      Act.

    

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

    

    (b)  So
      long
      as this Declaration remains in effect, the Trust (or the Trustees or
      Administrators acting on behalf of the Trust) shall not undertake any business,
      activities or transaction except as expressly provided herein or contemplated
      hereby. In particular, neither the Trustees nor the Administrators may cause
      the
      Trust to (i) acquire any investments or engage in any activities not authorized
      by this Declaration, (ii) sell, assign, transfer, exchange, mortgage, pledge,
      set-off or otherwise dispose of any of the Trust Property or interests therein,
      including to Holders, except as expressly provided herein, (iii) take any action
      that would cause (or in the case of the Institutional Trustee, to the actual
      knowledge of a Responsible Officer would cause) the Trust to fail or cease
      to
      qualify as a grantor trust for United States federal income tax purposes, (iv)
      incur any indebtedness for borrowed money or issue any other debt or (v) take
      or
      consent to any action that would result in the placement of a lien on any of
      the
      Trust Property. The Institutional Trustee shall, at the sole cost and expense
      of
      the Trust subject to reimbursement under Section 9.6(a), defend all claims
      and
      demands of all Persons at any time claiming any lien on any of the Trust
      Property adverse to the interest of the Trust or the Holders in their capacity
      as Holders.

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

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

    

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

    

    Section
      2.7.  Prohibition
      of Actions by the Trust and the Trustees.

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

    (e)  possess
      any power or otherwise act in such a way as to vary the Trust

    Property
      or the terms of the Securities;

     

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

    

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

    

    Section
      2.8.  Powers
      and Duties of the Institutional Trustee.

    

    (a)  The
      legal
      title to the Debentures shall be owned by and held of record in the name of
      the
      Institutional Trustee in trust for the benefit of the Trust. The right, title
      and interest of the Institutional Trustee to the Debentures shall vest
      automatically in each Person who may hereafter be appointed as Institutional
      Trustee in accordance with Section 4.5. Such vesting and cessation of title
      shall be effective whether or not conveyancing documents with regard to the
      Debentures have been executed and delivered.

    

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

    

    (c)  The
      Institutional Trustee shall:

    

    (i)  establish
      and maintain a segregated non-interest bearing trust account (the “Property
      Account”) in the United States (as defined in Treasury Regulations §
301.7701-7), in the name of and under the exclusive control of the Institutional
      Trustee, and maintained in the Institutional Trustee’s trust department, on
      behalf of the Holders of the Securities and, upon the receipt of payments of
      funds made in respect of the Debentures held by the Institutional Trustee,
      deposit such funds into the Property Account and make payments to the Holders
      of
      the Capital Securities and Holders of the Common Securities from the Property
      Account in accordance with Section 5.1. Funds in the Property Account shall
      be
      held uninvested until disbursed in accordance with this
      Declaration;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    (d)  The
      Institutional Trustee shall take all actions and perform such duties as may
      be
      specifically required of the Institutional Trustee pursuant to the terms of
      the
      Securities.

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  a
      Successor Institutional Trustee has been appointed and has accepted that
      appointment in accordance with Section 4.5.

    

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

    

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

    

    Section
      2.9.  Certain
      Duties and Responsibilities of the Trustees and the
      Administrators.

    

    (a)  The
      Institutional Trustee, before the occurrence of any Event of Default (of which
      the Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof))
      and after the curing of all Events of Default that may have occurred, shall
      undertake to perform only such duties as are specifically set forth in this
      Declaration and no implied covenants shall be read into this Declaration against
      the Institutional Trustee. In case an Event of Default (of which the
      Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof)),
      has occurred (that has not been cured or waived pursuant to Section 6.7), the
      Institutional Trustee shall exercise such of the rights and powers vested in
      it
      by this Declaration, and use the same degree of care and skill in their
      exercise, as a prudent person would exercise or use under the circumstances
      in
      the conduct of his or her own affairs.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

    (iii)  the
      Institutional Trustee’s sole duty with respect to the custody, safe keeping and
      physical preservation of the Debentures and the Property Account shall be to
      deal with such property in a similar manner as the Institutional Trustee deals
      with similar property for its own account, subject to the protections and
      limitations on liability afforded to the Institutional Trustee under this
      Declaration and the Trust Indenture Act;

    

    (iv)  the
      Institutional Trustee shall not be liable for any interest on any money received
      by it except as it may otherwise agree in writing with the Sponsor; and money
      held by the Institutional Trustee need not be segregated from other funds held
      by it except in relation to the Property Account maintained by the Institutional
      Trustee pursuant to Section 2.8(c)(i) and except to the extent otherwise
      required by law; and

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g)  the
      Institutional Trustee shall be under no obligation to exercise any of the rights
      or powers vested in it by this Declaration at the request or direction of any
      of
      the Holders pursuant to this Declaration, unless such Holders shall have offered
      to the Institutional Trustee security or indemnity reasonably satisfactory
      to it
      against the costs, expenses and liabilities which might be incurred by it in
      compliance with such request or direction; provided, that
      nothing contained in this Section 2.10(g) shall be taken to relieve the
      Institutional Trustee, upon the occurrence of an Event of Default (of which
      the
      Institutional Trustee has knowledge (as provided in Section 2.10(m) hereof))
      that has not been cured or waived, of its obligation to exercise the rights
      and
      powers vested in it by this Declaration;

    

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

    

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

    

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

    

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

    

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

    

    (m)  the
      Institutional Trustee shall not be charged with knowledge of an Event of Default
      unless a Responsible Officer of the Institutional Trustee has actual knowledge
      of such event or the Institutional Trustee receives written notice of such
      event
      from any Holder, except that the Institutional Trustee shall be deemed to have
      knowledge of any Event of Default pursuant to Sections 5.01(a), 5.01 (b) or
      5.01
      (c) of the Indenture (other than an Event of Default resulting from the default
      in the payment of Additional Amounts if the Institutional Trustee does not
      have
      actual knowledge or written notice that such payment is due and
      payable);

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    Section
      2.11.  Delaware
      Trustee.
      Notwithstanding any other provision of this Declaration other than Section
      4.2,
      the Delaware Trustee shall not be entitled to exercise any powers, and the
      Delaware Trustee shall not have any of the duties and responsibilities of any
      of
      the Trustees or the Administrators specified in this Declaration (except as
      may
      be required under the Statutory Trust Act). Except as set forth in Section
      4.2,
      the Delaware Trustee shall be a Trustee for the sole and limited purpose of
      fulfilling the requirements of § 3 807 of the Statutory Trust Act.

    

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

    

    Section
      2.13.  Not
      Responsible for Recitals or Issuance of Securities.
      The
      recitals contained in this Declaration and the Securities shall be taken as
      the
      statements of the Sponsor, and the Trustees do not assume any responsibility
      for
      their correctness. The Trustees make no representations as to the value or
      condition of the Trust Property or any part thereof. The Trustees make no
      representations as to the validity or sufficiency of this Declaration, the
      Debentures or the Securities.

    

    Section
      2.14.  Duration
      of Trust.
      The
      Trust, unless dissolved pursuant to the provisions of Article VII hereof, shall
      have existence for five (5) years after the Maturity Date.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      2.15.  Mergers.
      

    

    (a)  The
      Trust
      may not consolidate, amalgamate, merge with or into, or be replaced by, or
      convey, transfer or lease its properties and assets substantially as an entirety
      to any corporation or other Person, except as described in this Section 2.15
      and
      except with respect to the distribution of Debentures to Holders of Securities
      pursuant to Section 7.1(a)(iv) of this Declaration or Section 4 of Annex
      I.

    

    (b)  The
      Trust
      may, with the consent of the Administrators (which consent will not be
      unreasonably withheld) and without the consent of the Institutional Trustee,
      the
      Delaware Trustee or the Holders of the Capital Securities, consolidate,
      amalgamate, merge with or into, or be replaced by, or convey, transfer or lease
      its properties and assets as an entirety or substantially as an entirety to
      a
      trust organized as such under the laws of any state; provided,
      that:

    (i)  if
      the
      Trust is not the survivor, such successor entity (the “Successor Entity”)
      either:

    

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

    

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

    

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

    

    (iii)  the
      Capital Securities or any Successor Securities are listed or quoted, or any
      Successor Securities will be listed or quoted upon notification of issuance,
      on
      any national securities exchange or with another organization on which the
      Capital Securities are then listed or quoted, if any;

    

    (iv)  such
      merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
      does not cause the rating on the Capital Securities or any Successor Securities
      to be downgraded or withdrawn by any nationally recognized statistical rating
      organization, if the Capital Securities are then rated;

    

    (v)  such
      merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
      does not adversely affect the rights, preferences and privileges of the Holders
      of the Securities or any Successor Securities in any material respect (other
      than with respect to any dilution of such Holders’ interests in the Successor
      Entity);

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (vi)  such
      Successor Entity, if any, has a purpose substantially identical to that of
      the
      Trust;

    

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

    

    (A)  such
      merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
      does not adversely affect the rights, preferences and privileges of the Holders
      of the Securities or any Successor Securities in any material respect (other
      than with respect to any dilution of such Holders’ interests in the Successor
      Entity);

    

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

    

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

    

    (viii)  the
      Sponsor guarantees the obligations of the Successor Entity under the Successor
      Securities to the same extent provided by the Indenture, the Guarantee, the
      Debentures and this Declaration; and

    

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

    

    (c)  Notwithstanding
      Section 2.15(b), the Trust shall not, except with the consent of Holders of
      100%
      in liquidation amount of the Securities, consolidate, amalgamate, merge with
      or
      into, or be replaced by, or convey, transfer or lease its properties and assets
      as an entirety or substantially as an entirety to, any other Person or permit
      any other Person to consolidate, amalgamate, merge with or into, or replace
      it
      if such consolidation, amalgamation, merger, replacement, conveyance, transfer
      or lease would cause the Trust or Successor Entity to be classified as other
      than a grantor trust for United States federal income tax purposes.

    

    ARTICLE
      III

    SPONSOR

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    (b)  to
      prepare for filing and request the Administrators to cause the filing by the
      Trust, as may be appropriate, of an application to the PORTAL system, for
      listing or quotation upon notice of issuance of any Capital Securities, as
      requested by the Holders of not less than a Majority in liquidation amount
      of
      the Capital Securities; and

    

    (c)  to
      negotiate the terms of and/or execute and deliver on behalf of the Trust, the
      Purchase Agreement and other related agreements providing for the sale of the
      Capital Securities or the resale thereof by the Purchaser.

    

    ARTICLE
      IV

    TRUSTEES
      AND ADMINISTRATORS

    

    Section
      4.1.  Number
      of Trustees.
      The
      number of Trustees initially shall be two, and

    

    (a)  at
      any
      time before the issuance of any Securities, the Sponsor may, by written
      instrument, increase or decrease the number of Trustees; and

    

    (b)  after
      the
      issuance of any Securities, the number of Trustees may be increased or decreased
      by vote of the Holder of a Majority in liquidation amount of the Common
      Securities voting as a class at a meeting of the Holder of the Common
      Securities; provided,
      however,
      that
      there shall be a Delaware Trustee if required by Section 4.2; and there shall
      always be one Trustee who shall be the Institutional Trustee, and such Trustee
      may also serve as Delaware Trustee if it meets the applicable requirements,
      in
      which case Section 2.11 shall have no application to such entity in its capacity
      as Institutional Trustee.

    

    Section
      4.2.  Delaware
      Trustee.
      If
      required by the Statutory Trust Act, one Trustee (the “Delaware Trustee”) shall
      be:

    

    (a)  a
      natural
      person who is a resident of the State of Delaware and a U.S. Person at least
      21
      years of age; or

    

    (b)  if
      not a
      natural person, an entity which is organized under the laws of the United States
      or any state thereof or the District of Columbia, has its principal place of
      business in the State of Delaware, and otherwise meets the requirements of
      applicable law, including §3807 of the Statutory Trust Act.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      initial Delaware Trustee shall be Wilmington Trust Company.

     

    Section
      4.3.  Institutional
      Trustee; Eligibility.

    

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

    

    (i)  not
      be an
      Affiliate of the Sponsor;

    

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

    

    (iii)  be
      a
      banking corporation or national association organized and doing business under
      the laws of the United States of America or any state thereof or of the District
      of Columbia and authorized under such laws to exercise corporate trust powers,
      having a combined capital and surplus of at least fifty million U. S. dollars
      ($50,000,000), and subject to supervision or examination by federal, state
      or
      District of Columbia authority. If such corporation or national association
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of the supervising or examining authority referred to above, then
      for the purposes of this Section 4.3(a)(iii), the combined capital and surplus
      of such corporation or national association shall be deemed to be its combined
      capital and surplus as set forth in its most recent report of condition so
      published.

    

    (b)  If
      at any
      time the Institutional Trustee shall cease to be eligible to so act under
      Section 4.3(a), the Institutional Trustee shall immediately resign in the manner
      and with the effect set forth in Section 4.5.

    

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

    

    (d)  The
      initial Institutional Trustee shall be Wilmington Trust Company.

    

    Section
      4.4.  Administrators.
      Each
      Administrator shall be a U.S. Person. There shall at all times be at least
      one
      Administrator. Except where a requirement for action by a specific number of
      Administrators is expressly set forth in this Declaration and except with
      respect to any action the taking of which is the subject of a meeting of the
      Administrators, any action required or permitted to be taken by the
      Administrators may be taken by, and any power of the Administrators may be
      exercised by, or with the consent of, any one such Administrator acting
      alone.

    

    Section
      4.5.  Appointment.
      Removal and Resignation of the Trustees and the Administrators.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a)  No
      resignation or removal of any Trustee (the “Relevant Trustee”) and no
      appointment of a successor Trustee pursuant to this Article shall become
      effective until the acceptance of appointment by the successor Trustee in
      accordance with the applicable requirements of this Section.

    

    (b)  Subject
      to Section 4.5(a), a Relevant Trustee may resign at any time by giving written
      notice thereof to the Holders of the Securities and by appointing a successor
      Relevant Trustee. Upon the resignation of the Institutional Trustee, the
      Institutional Trustee shall appoint a successor by requesting from at least
      three Persons meeting the eligibility requirements their expenses and charges
      to
      serve as the successor Institutional Trustee on a form provided by the
      Administrators, and selecting the Person who agrees to the lowest expense and
      charges (the “Successor Institutional Trustee”). If the instrument of acceptance
      by the successor Relevant Trustee required by this Section shall not have been
      delivered to the Relevant Trustee within 60 days after the giving of such notice
      of resignation or delivery of the instrument of removal, the Relevant Trustee
      may petition, at the expense of the Trust, any federal, state or District of
      Columbia court of competent jurisdiction for the appointment of a successor
      Relevant Trustee. Such court may thereupon, after prescribing such notice,
      if
      any, as it may deem proper, appoint a Relevant Trustee. The Institutional
      Trustee shall have no liability for the selection of such successor pursuant
      to
      this Section.

    

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

    

    (d)  The
      Institutional Trustee shall give notice of each resignation and each removal
      of
      a Trustee and each appointment of a successor Trustee to all Holders and to
      the
      Sponsor. Each notice shall include the name of the successor Relevant Trustee
      and the address of its Corporate Trust Office if it is the Institutional
      Trustee.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  Notwithstanding
      the foregoing or any other provision of this Declaration, in the event a
      Delaware Trustee who is a natural person dies or is adjudged by a court to
      have
      become incompetent or incapacitated, the vacancy created by such death,
      incompetence or incapacity may be filled by the Institutional Trustee following
      the procedures in this Section (with the successor being a Person who satisfies
      the eligibility requirement for a Delaware Trustee set forth in this
      Declaration) (the “Successor Delaware Trustee”).

    

    (f)  In
      case
      of the appointment hereunder of a successor Relevant Trustee, the retiring
      Relevant Trustee and each successor Relevant Trustee with respect to the
      Securities shall execute and deliver an amendment hereto wherein each successor
      Relevant Trustee shall accept such appointment and which (a) shall contain
      such
      provisions as shall be necessary or desirable to transfer and confirm to, and
      to
      vest in, each successor Relevant Trustee all the rights, powers, trusts and
      duties of the retiring Relevant Trustee with respect to the Securities and
      the
      Trust and (b) shall add to or change any of the provisions of this Declaration
      as shall be necessary to provide for or facilitate the administration of the
      Trust by more than one Relevant Trustee, it being understood that nothing herein
      or in such amendment shall constitute such Relevant Trustees co-trustees and
      upon the execution and delivery of such amendment the resignation or removal
      of
      the retiring Relevant Trustee shall become effective to the extent provided
      therein and each such successor Relevant Trustee, without any further act,
      deed
      or conveyance, shall become vested with all the rights, powers, trusts and
      duties of the retiring Relevant Trustee; but, on request of the Trust or any
      successor Relevant Trustee, such retiring Relevant Trustee shall duly assign,
      transfer and deliver to such successor Relevant Trustee all
      Trust
      Property, all proceeds thereof and money held by such retiring Relevant Trustee
      hereunder with respect to the Securities and the Trust subject to the payment
      of
      all unpaid fees, expenses and indemnities of such retiring Relevant
      Trustee.

    

    (g)  No
      Institutional Trustee or Delaware Trustee shall be liable for the acts or
      omissions to act of any Successor Institutional Trustee or Successor Delaware
      Trustee, as the case may be.

    

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

    

    (i)  Any
      Successor
      Delaware
      Trustee shall file an amendment to the Certificate of Trust with the Secretary
      of State of the State of Delaware identifying the name and principal place
      of
      business of such Delaware Trustee in the State of Delaware.

    

    Section
      4.6.  Vacancies
      Among Trustees.
      If a
      Trustee ceases to hold office for any reason and the number of Trustees is
      not
      reduced pursuant to Section 4.1, or if the number of Trustees is increased
      pursuant to Section 4.1, a vacancy shall occur. A resolution certifying the
      existence of such vacancy by the Trustees or, if there are more than two, a
      majority of the Trustees shall be conclusive evidence of the existence of such
      vacancy. The vacancy shall be filled with a Trustee appointed in accordance
      with
      Section 4.5.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      4.7.  Effect
      of Vacancies.
      The
      death, resignation, retirement, removal, bankruptcy, dissolution, liquidation,
      incompetence or incapacity to perform the duties of a Trustee shall not operate
      to dissolve, terminate or annul the Trust or terminate this Declaration.
      Whenever a vacancy in the number of Trustees shall occur, until such
vacancy
      is
      filled by the appointment of a Trustee in accordance with Section 4.5, the
      Institutional Trustee shall have all the powers granted to the Trustees and
      shall discharge all the duties imposed upon the Trustees by this
      Declaration.

    

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

    

    Section
      4.9.  Delegation
      of Power.
      

    

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

    

    (b)  The
      Trustees shall have power to delegate from time to time to such of their number
      or to any officer of the Trust that is a U.S. Person, the doing of such things
      and the execution of such instruments or other writings either in the name
      of
      the Trust or the names of the Trustees or otherwise as the Trustees may deem
      expedient, to the extent such delegation is not prohibited by applicable law
      or
      contrary to the provisions of the Trust, as set forth herein.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      4.10.  Merger,
      Conversion, Consolidation or Succession to Business.
      Any
      Person into which the Institutional Trustee or the Delaware Trustee, as the
      case
      may be, may be merged or converted or with which either may be consolidated,
      or
      any Person resulting from any merger, conversion or consolidation to which
      the
      Institutional Trustee or the Delaware Trustee, as the case may be, shall be
      a
      party, or any Person succeeding to all or substantially all the corporate trust
      business of the Institutional Trustee or the Delaware Trustee, as the case
      may
      be, shall be the successor of the Institutional Trustee or the Delaware Trustee,
      as the case may be, hereunder, without the execution or filing of any paper
      or
      any further act on the part of any of the parties hereto, provided such Person
      shall be otherwise qualified and eligible under this Article and, provided,
      further,
      that
      such Person shall file an amendment to the Certificate of Trust with the
      Secretary of State of the State of Delaware as contemplated in Section
      4.5(i).

    

    ARTICLE
      V

    DISTRIBUTIONS

    

    Section
      5.1.  Distributions.
      Holders
      shall receive Distributions in accordance with the applicable terms of the
      relevant Holder’s Securities. Distributions shall be made on the Capital
      Securities and the Common Securities in accordance with the preferences set
      forth in their respective terms. If and to the extent that the Debenture Issuer
      makes a payment of interest (including any Additional Amounts or Deferred
      Interest) or premium, if any, on and/or principal of the Debentures held by
      the
      Institutional Trustee (the amount of any such payment being a “Payment Amount”),
      the Institutional Trustee shall and is directed, to the extent funds are
      available in the Property Account for that purpose, to make a distribution
      (a
“Distribution”) of the Payment Amount to Holders. For the avoidance of doubt,
      funds in the Property Account shall not be distributed to Holders to the extent
      of any taxes payable by the Trust, in the case of withholding taxes, as
      determined by the Institutional Trustee or any Paying Agent and, in the case
      of
      taxes other than withholding taxes, as determined by the Administrators in
      a
      written notice to the Institutional Trustee.

    

    ARTICLE
      VI

    ISSUANCE
      OF SECURITIES

    

    Section
      6.1.  General
      Provisions Regarding Securities.

    

    (a)  The
      Administrators shall on behalf of the Trust issue one series of capital
      securities, evidenced by a certificate substantially in the form of Exhibit
      A-1,
      representing undivided beneficial interests in the assets of the Trust and
      having such terms as are set forth in Annex I (the “Capital Securities”), and
      one series of common securities, evidenced by a certificate substantially in
      the
      form of Exhibit A-2, representing undivided beneficial interests in the
      assets of the Trust and having such terms as are set forth in Annex I (the
      “Common Securities”). The Trust shall issue no securities or other interests in
      the assets of the Trust other than the Capital Securities and the Common
      Securities. The Capital Securities rank pari passu with, and payment thereon
      shall be made Pro Rata with, the Common Securities except that, where an Event
      of Default has occurred and is continuing, the rights of Holders of the Common
      Securities to payment in respect of Distributions and payments upon liquidation,
      redemption and otherwise are subordinated to the rights to payment of the
      Holders of the Capital Securities.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  The
      Certificates shall be signed on behalf of the Trust by one or more
      Administrators. Such signature shall be the facsimile or manual signature of
      any
      Administrator. In case any Administrator of the Trust who shall have signed
      any
      of the Securities shall cease to be such Administrator before the Certificates
      so signed shall be delivered by the Trust, such Certificates nevertheless may
      be
      delivered as though the person who signed such Certificates had not ceased
      to be
      such Administrator. Any Certificate may be signed on behalf of the Trust by
      such
      person who, at the actual date of execution of such Certificate, shall be an
      Administrator of the Trust, although at the date of the execution and delivery
      of the Declaration any such person was not such an Administrator. A Capital
      Security shall not be valid until the Certificate evidencing it is authenticated
      by the manual or facsimile signature of an Authorized Officer of the
      Institutional Trustee. Such signature shall be conclusive evidence that the
      Certificate evidencing such Capital Security has been authenticated under this
      Declaration. Upon written order of the Trust signed by one Administrator, the
      Institutional Trustee shall authenticate one or more Certificates evidencing
      the
      Capital Securities for original issue. The Institutional Trustee may appoint
      an
      authenticating agent that is a U.S. Person acceptable to the Sponsor to
      authenticate Certificates evidencing Capital Securities. A Common Security
      need
      not be so authenticated and shall be valid upon execution by one or more
      Administrators.

    

    (c)  Capital
      Securities initially issued by the Trust to Persons other than QIBs or non-“U.S.
      Persons” in “offshore transactions” under, and within the meaning of, Regulation
      S under the Securities Act shall be issued in the form of one or more Definitive
      Capital Securities Certificates. The Capital Securities initially issued to
      QIBs
      or non-”U. S. Persons” in “offshore transactions” under, and within the meaning
      of, Regulation S under the Securities Act shall be issued either (i) in the
      form
      of one or more Global Capital Securities Certificates or (ii) if indicated
      in
      writing by the Purchaser to the Sponsor on or prior to the Closing Date, in
      the
      form of one or more Definitive Capital Securities Certificates. Global Capital
      Security Certificates shall be, except as provided in Section 6.4, registered
      in
      the name of the Depositary or its nominee and deposited with the Depositary
      or,
      if not so deposited, held by the Institutional Trustee as a custodian for the
      Depositary, for credit by the Depositary to the respective accounts of the
      Depositary Participants (or such other accounts as they may direct). The Trust,
      as issuer and the Institutional Trustee, as custodian, are hereby authorized
      to
      execute, deliver and perform any letter of representations and other similar
      agreements or writings in connection with Capital Securities issued in the
      form
      of Global Capital Securities.

    

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

    

    (e)  Upon
      issuance
      of the
      Securities as provided in this Declaration, the Securities so issued shall
      be
      deemed to be validly issued, fully paid and non-assessable, and each Holder
      thereof shall be entitled to the benefits provided by this
      Declaration.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    Section
      6.2.  Paying
      Agent, Transfer Agent, Calculation Agent and Registrar.

    

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

    

    (b)  The
      Trust
      shall also appoint a Calculation Agent, which shall determine the Coupon Rate
      in
      accordance with the terms of the Securities. The Trust initially appoints the
      Institutional Trustee as Calculation Agent.

    

    Section
      6.3.  Form
      and Dating.

    

    (a)  The
      Capital Securities shall be evidenced by one or more Certificates, and the
      Institutional Trustee’s certificate of authentication thereon shall be,
      substantially in the form of Exhibit A-1, and the Common Securities shall be
      evidenced by one or more Certificates substantially in the form of Exhibit
      A-2,
      each of which is hereby incorporated in and expressly made a part of this
      Declaration. Certificates may be typed, printed, lithographed or engraved or
      may
      be produced in any other manner as is reasonably acceptable to the
      Administrators, as conclusively evidenced by their execution thereof.
      Certificates evidencing Securities may have letters, numbers, notations or
      other
      marks of identification or designation and such legends or endorsements required
      by law, stock exchange rule, agreements to which the Trust is subject, if any,
      or usage (provided, that any such notation, legend or endorsement is in a form
      acceptable to the Sponsor). The Trust at the direction of the Sponsor shall
      furnish any such legend not contained in Exhibit A-1 to the Institutional
      Trustee in writing. Each Capital Security Certificate shall be dated the date
      of
      its authentication. The terms and provisions of the Securities set forth in
      Annex I and the forms of Certificates set forth in Exhibits A-1 and A-2 are
      part
      of the terms of this Declaration and to the extent applicable, the Institutional
      Trustee, the Delaware Trustee, the Administrators and the Sponsor, by their
      execution and delivery of this Declaration, expressly agree to such terms and
      provisions and to be bound thereby. Capital Securities will be issued only
      in
      blocks having an aggregate liquidation amount of not less than
      $100,000.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  The
      Capital Securities are being offered and sold by the Trust initially pursuant
      to
      the Purchase Agreement in the form of a Global Capital Security or one or more
      Definitive Capital Securities, in accordance with Section 6.1(c), and will
      be
      registered in the name of the Holder thereof, without coupons and with the
      Restricted Securities Legend.

    

    Section
      6.4.  Book-Entry
      Capital Securities.

    

    (a)  A
      Global
      Capital Security may be exchanged, in whole or in part, for Definitive Capital
      Securities Certificates registered in the names of the Beneficial Owners thereof
      only if such exchange complies with Article VIII and (i) the Depositary advises
      the Administrators and the Institutional Trustee in writing that the Depositary
      is no longer willing or able to properly discharge its responsibilities with
      respect to the Global Capital Security, and no qualified successor is appointed
      by the Administrators within ninety (90) days of receipt of such notice, (ii)
      the Depositary ceases to be a clearing agency registered under the Exchange
      Act
      and the Administrators fail to appoint a qualified successor within ninety
      (90)
      days of obtaining knowledge of such event or (iii) an Indenture Event of Default
      has occurred and is continuing. Upon the occurrence of any event specified
      in
      clause (i), (ii) or (iii) above, the Administrators shall notify the Depositary
      and instruct the Depositary to notify all Beneficial Owners and the
      Institutional Trustee of the occurrence of such event and of the availability
      of
      Definitive Capital Securities Certificates to Beneficial Owners requesting
      the
      same. Upon the issuance of Definitive Capital Securities Certificates, the
      Administrators and the Institutional Trustee shall recognize the Persons in
      whose names the Definitive Capital Securities Certificates are registered in
      the
      Securities Register as the Holders of the Capital Securities evidenced thereby
      for all purposes under this Declaration and the Capital Securities. A holder
      of
      a Definitive Capital Securities Certificate that is a QIB may upon request,
      and
      in accordance with the provisions of this Section 6.4 and Article VIII, exchange
      such Definitive Capital Securities Certificate for a beneficial interest in
      a
      Global Capital Security.

    

    (b)  If
      any
      Global Capital Security is to be exchanged for Definitive Capital Securities
      Certificates or canceled in part, or if any Definitive Capital Securities
      Certificate is to be exchanged in whole or in part for any Global Capital
      Security, then either (i) such Global Capital Security shall be so surrendered
      for exchange or cancellation as provided in this Section 6.4 and Article VIII
      or
      (ii) the aggregate liquidation amount represented by such Global Capital
      Security shall be reduced or increased, subject to Section 8.2(d), by an amount
      equal to the liquidation amount represented by that portion of the Global
      Capital Security to be so exchanged or canceled, or equal to the liquidation
      amount represented by such Definitive Capital Securities Certificates to be
      so
      exchanged for any Global Capital Security, as the case may be, by means of
      an
      appropriate adjustment made on the records of the Registrar, whereupon the
      Institutional Trustee, in accordance with the Applicable Depositary Procedures,
      shall instruct the Depositary or its authorized representative to make a
      corresponding adjustment to its records. Upon any such surrender or adjustment
      to the Administrators or the Registrar of any Global Capital Security or
      Securities by the Depositary, accompanied by registration instructions, the
      Administrators, or any one of them, shall execute and the Institutional Trustee
      shall authenticate and deliver Definitive Capital Securities Certificates
      issuable in exchange for such Global Capital Securities (or any portion thereof)
      in accordance with the instructions of the Depositary, The Registrar,
      Administrators and the Institutional Trustee may conclusively rely on, and
      shall
      be fully protected in relying on, such instructions.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    (d)  The
      Depositary or its nominee, as registered owner of a Global Capital Security,
      shall be the Holder of such Global Capital Security for all purposes under
      this
      Declaration and the Global Capital Security, and Beneficial Owners with respect
      to a Global Capital Security shall hold such interests pursuant to the
      Applicable Depositary Procedures. The Registrar, the Administrators and
the
      Institutional Trustee shall be entitled to deal with the Depositary for all
      purposes of this Declaration relating to the Global Capital Securities as the
      sole Holder of the Book-Entry Capital Securities represented thereby and shall
      have no obligations to the Beneficial Owners thereof. None of the
      Administrators, the Institutional Trustee nor the Registrar shall have any
      liability in respect of any transfers effected by the Depositary.

    

    (e)  The
      rights of the Beneficial Owners of the Book-Entry Capital Securities shall
      be
      exercised only through the Depositary and shall be limited to those established
      by law, the Applicable Depositary Procedures and agreements between such
      Beneficial Owners and the Depositary and/or its Depositary Participants;
      provided, solely for the purpose of determining whether the Holders of the
      requisite amount of Capital Securities have voted on any matter provided for
      in
      this Declaration, to the extent that Capital Securities are represented by
      a
      Global Capital Security, the Administrators and the Institutional Trustee may
      conclusively rely on, and shall be fully protected in relying on, any written
      instrument (including a proxy) delivered to the Institutional Trustee by the
      Depositary setting forth the Beneficial Owners’ votes or assigning the right to
      vote on any matter to any other Persons either in whole or in part. To the
      extent that Capital Securities are represented by a Global Capital Security,
      the
      initial Depositary will make book-entry transfers among the Depositary
      Participants and receive and transmit payments on the Capital Securities that
      are represented by a Global Capital Security to such Depositary Participants,
      and none of the Sponsor, the Administrators or the Institutional Trustee shall
      have any responsibility or obligation with respect thereto.

    

    (f)  To
      the
      extent that a notice or other communication to the Holders is required under
      this Declaration, for so long as Capital Securities are represented by a Global
      Capital Security, the Administrator
      and the
      Institutional Trustee shall give all such notices and communications to the
      Depositary, and shall have no obligations to the Beneficial Owners.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      6.5.  Mutilated.
      Destroyed, Lost or Stolen Certificates.
      If (a)
      any mutilated Certificate should be surrendered to the Registrar, or if the
      Registrar shall receive evidence to its satisfaction of the destruction, loss
      or
      theft of any Certificate and (b) the related Holder shall deliver to the
      Registrar, the Administrators and the Institutional Trustee such security or
      indemnity as may be reasonably required by them to keep each of them harmless,
      then, in the absence of notice that such Certificate shall have been acquired
      by
      a bona fide purchaser, an Administrator on behalf of the Trust shall execute
      (and in the case of a Capital Security Certificate, the Institutional Trustee
      shall authenticate) and deliver to such Holder, in exchange for or in lieu
      of
      any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
      of
      like denomination. In connection with the issuance of any new Certificate under
      this Section, the Registrar or the Administrators may require such Holder to
      pay
      a sum sufficient to cover any tax or other governmental charge that may be
      imposed in connection therewith. Any Certificate executed and delivered pursuant
      to this Section shall constitute conclusive evidence of an ownership interest
      in
      the relevant Securities, as if originally issued, whether or not the lost,
      stolen or destroyed Certificate shall be found at any time.

    

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

    

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

    

    Section
      6.8.  Rights
      of Holders: Waivers of Past Defaults.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  For
      so
      long as any Capital Securities remain outstanding, if, upon an Indenture Event
      of Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of the
      Indenture, the Debenture Trustee fails or the holders of not less than 25%
      in
      principal amount of the outstanding Debentures fail to declare the principal
      of
      all of the Debentures to be immediately due and payable, the Holders of not
      less
      than a Majority in liquidation amount of the Capital Securities then outstanding
      shall have the right to make such declaration by a notice in writing to the
      Institutional Trustee, the Sponsor and the Debenture Trustee.

    

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

    

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

    

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

    

    (B)  any
      accrued Deferred Interest on all of the Debentures;

    

    (C)  all
      payments on any Debentures that have become due otherwise than by such
      acceleration and interest and Deferred Interest thereon at the rate borne by
      the
      Debentures; and

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    (f)  Except
      as
      otherwise provided in this Section, the Holders of a Majority in liquidation
      amount of the Capital Securities may, on behalf of the Holders of all the
      Capital Securities, waive any past Default or Event of Default and its
      consequences. Upon such waiver, any such Default or Event of Default shall
      cease
      to exist, and any Default or Event of Default arising therefrom shall be deemed
      to have been cured, for every purpose of this Declaration, but no
      such waiver
      shall extend to any subsequent or other Default or Event of Default or impair
      any right consequent thereon.

    

    ARTICLE
      VII

    DISSOLUTION
      AND TERMINATION OF TRUST

    

    Section
      7.1.  Dissolution
      and Termination of Trust.
      

    

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

    

    (i)  unless
      earlier dissolved, on February 23, 2041, the expiration of the term of the
      Trust;

    

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

     

    (iii)  other
      than in connection with a merger, consolidation or similar transaction not
      prohibited by the Indenture, this Declaration or the Guarantee, as the case
      may
      be, the filing of a certificate of dissolution or its equivalent with respect
      to
      the Sponsor or upon the revocation of the charter of the Sponsor and the
      expiration of 90 days after the date of revocation without a reinstatement
      thereof,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv)  the
      distribution of all of the Debentures to the Holders of the Securities, upon
      exercise of the right of the Holders of all of the outstanding Common Securities
      to dissolve the Trust as provided in Annex I hereto;

    

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

    

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

    

    (vii)  before
      the issuance of any Securities, with the consent of all of the Trustees and
      the
      Sponsor.

    

    (b)  As
      soon
      as is practicable after the occurrence of an event referred to in Section
      7.1(a), and after satisfaction of liabilities to creditors of the Trust as
      required by applicable law, including §3808 of the Statutory Trust Act, and
      subject to the terms set forth in Annex 1, the Institutional Trustee shall
      terminate the Trust by filing a certificate of cancellation with the Secretary
      of State of the State of Delaware.

    of
      the
      Trust.

    

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

    

    ARTICLE
      VIII 

    TRANSFER
      OF INTERESTS

    

    Section
      8.1.  General.

    

    (a)  Subject
      to Section 6.4 and Section 8.1(c), when a Holder of Capital Securities delivers
      to the Registrar in accordance with this Declaration a request to register
      a
      transfer of such Holder’s Capital Securities or to exchange them for an equal
      aggregate liquidation amount of Capital Securities represented by different
      Certificates, the Registrar shall register the transfer or make the exchange
      when the requirements provided for herein for such transfer or exchange are
      met.
      To facilitate registrations of transfers and exchanges, the Trust shall execute
      and the Institutional Trustee shall authenticate Capital Security Certificates
      at the Registrar’s request.

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    (d)  The
      Registrar shall provide in the Securities Register for the registration of
      Securities and of transfers of Securities, which will be effected without charge
      but only upon payment (with such indemnity as the Registrar may reasonably
      require) in respect of any tax or other
      governmental charges that may be imposed in relation to it.

    

    With
      respect to Capital Securities that are not Book-Entry Capital Securities, upon
      its receipt of the documents required under this Section 8.1 (d) for
      registration of transfer of any Securities, the Registrar shall register in
      the
      Securities Register, in the name of the designated transferee or transferees,
      the Securities being transferred and thereupon, for all purposes of this
      Declaration, such transfer shall be effective and such transferee or transferees
      shall be, and such transferor shall no longer be, the Holder of the transferred
      Securities. Upon the registration of transfer of a Security pursuant to the
      terms of this Declaration in the name of the new Holder thereof, such Security
      shall constitute the same Security as the Security so transferred and shall
      be
      entitled to the same benefits under this Declaration as the Security so
      transferred. The Registrar shall, and is authorized to, record and register
      in
      the Securities Register the transfer of a Security upon the Registrar’s receipt
      of originals or copies (which may be by facsimile or other form of electronic
      transmission) of (i) a written instrument of transfer in form reasonably
      satisfactory to the Registrar duly executed by the Holder or such Holder’s
      attorney duly authorized in writing, and (ii) if such Security is being
      transferred prior to the Resale Restriction Termination Date other than in
      accordance with Section 8.4, a certificate substantially in the form set forth
      as Exhibit C, D or E, as applicable, hereto, executed by the transferor or
      transferee, as applicable; thereupon, the Registrar is authorized to confirm
      in
      writing to the transferee and, if requested, to the transferor of such Security
      that such transfer has been registered in the Securities Register and that
      such
      transferee is the Holder of such Security. The Definitive Capital Securities
      Certificate transferred, duly endorsed by the transferor, shall be surrendered
      to the Registrar at the time the transfer conditions specified in the
      immediately preceding sentence are satisfied or within five (5) Business Days
      after the Registrar has registered the transfer of such Security on the
      Securities Register, and promptly after such surrender, an Administrator on
      behalf of the Trust shall execute and the Institutional Trustee shall, and
      is
      authorized to, authenticate a Certificate in the name of the transferee or,
      if
      the transferee is a QIB desiring a beneficial interest in a Global Capital
      Security, in the name of the Depositary or its nominee, as applicable, as the
      new Holder of the Security evidenced thereby. Until the Definitive Capital
      Securities Certificate evidencing the Security so transferred is surrendered
      to
      the Registrar, such Security may not be transferred by such new
      Holder.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Definitive Capital Securities Certificate surrendered in connection with a
      registration of transfer shall be canceled by the Institutional Trustee pursuant
      to Section 6.7. A transferee of a Security shall be entitled to the rights
      and
      subject to the obligations of a Holder hereunder upon the registration of such
      transfer in the Securities Register. Each such transferee shall be deemed to
      have agreed to be bound by this Declaration.

    

    (e)  Neither
      the Trust nor the Registrar shall be required (i) to issue Certificates
      representing Securities or register the transfer of or exchange any Securities
      during a period beginning at the opening of business 15 days before the day
      of
      any selection of Securities
      for redemption and ending at the close of business on the earliest date on
      which
      the relevant notice of redemption is deemed to have been given to all Holders
      of
      the Securities to be redeemed, or (ii) to register the transfer or exchange
      of
      any Security so selected for redemption in whole or in part, except the
      unredeemed portion of any Security being redeemed in part.

    

    Section
      8.2.  Transfer
      Procedures and Restrictions.

    

    (a)  Prior
      to
      the Resale Restriction Termination Date, Certificates evidencing Capital
      Securities shall bear the Restricted Securities Legend. The Restricted
      Securities Legend on any Certificate evidencing outstanding Capital Securities
      shall not be removed unless there is delivered to the Trust such satisfactory
      evidence, which may include an opinion of counsel, as may be reasonably required
      by the Trust, that neither the Restricted Securities Legend nor the restrictions
      on transfer set forth therein are required to ensure that transfers thereof
      comply with the provisions of the Securities Act or that such Securities are
      not
“restricted” within the meaning of Rule 144 under the Securities Act. Upon
      provision of such satisfactory evidence, the Institutional Trustee, at the
      written direction of the Trust, shall authenticate and deliver Capital
      Securities Certificates that do not bear the Restricted Securities Legend (other
      than the first two paragraphs of the legend specified in Section 8.2(c)) in
      exchange for the Capital Securities Certificates bearing the Restricted
      Securities Legend.

    

    (b)  Prior
      to
      the Resale Restriction Termination Date, without the written consent of the
      Sponsor, Capital Securities that are not Book-Entry Capital Securities may
      only
      be transferred: (i) to a QIB if the instrument of transfer is accompanied by
      a
      certificate of the transferor substantially in the form set forth as Exhibit
      D
      hereto; (ii) to an “accredited investor” within the meaning of Rule 501 (a) (1),
      (2), (3), (7) or (8) under the Securities Act if the instrument of transfer
      is
      accompanied by a certificate of the transferee substantially in the form set
      forth as Exhibit C hereto; or (iii) to a non-“U.S. Person” in an “offshore
      transaction” under, and within the meaning of, Regulation S under the Securities
      Act if the instrument of transfer is accompanied by a certificate of the
      transferee substantially in the form set forth as Exhibit E hereto. Each
      certificate furnished pursuant to this Section 8.2(b) may be an original or
      a
      copy (which may be furnished by facsimile or other form of electronic
      transmission).

    

    (c)  The
      Capital Securities may not be transferred prior to the Resale Restriction
      Termination Date except in compliance with restrictions on transfer set forth
      in
      the legend set forth below (the “Restricted Securities Legend”), and except as
      otherwise contemplated in Section 8.2(a), prior to the Resale Restriction
      Termination Date, each Certificate evidencing outstanding Capital Securities
      shall bear the Restricted Securities Legend:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

    

    UNLESS
      THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE TRUST
      OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
      SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]1 

    

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

     

    
      

      
        1 Only
          applicable to Global Capital Securities.

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    (d)  Capital
      Securities may only be transferred in minimum blocks of $100,000 aggregate
      liquidation amount (100 Capital Securities) and multiples of $1,000 in excess
      thereof. Any attempted transfer of Capital Securities in a block having an
      aggregate liquidation amount of less than $100,000 shall be deemed to be void
      and of no legal effect whatsoever. Any such purported transferee shall be deemed
      not to be a Holder of such Capital Securities for any purpose, including, but
      not limited to, the receipt of Distributions on such Capital Securities, and
      such purported transferee shall be deemed to have no interest whatsoever in
      such
      Capital Securities.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Transfer
      of Initial Securities. With
      respect to Capital Securities that are not Book-Entry Capital Securities, and
      notwithstanding the foregoing provisions of this Article VIII or any other
      provision of this Declaration (including all Annexes and Exhibits hereto) to
      the
      contrary, any or all of the Capital Securities initially issued to the Purchaser
      (the “Initial Securities”) may be transferred by the Purchaser to any transferee
      selected by it that meets the parameters specified below and, upon delivery
      to
      the Registrar, of originals or copies (which may be by facsimile or other form
      of electronic transmission) of a written instrument of transfer in form
      reasonably satisfactory to the Registrar duly executed by the Purchaser or
      the
      Purchaser’s attorney duly authorized in writing (it being understood that no
      signature guarantee shall be required), then the Registrar shall, and is
      authorized to, record and register on the Securities Register the transfer
      of
      such Initial Securities to such transferee; thereupon, the Registrar is
      authorized to confirm in writing to the transferee and, if requested, to the
      transferor of such Initial Securities that such transfer has been registered
      in
      the Securities Register and that such transferee is the Holder of such Initial
      Securities; provided,
      however, that
      the
      Purchaser of the
      Initial Securities, by its acceptance thereof, agrees that it may not transfer
      any Initial Securities prior to the Resale Restriction Termination Date to
      any
      transferee that is not a QIB, an “accredited investor” within the meaning of
      Rule 501(a)(1), (2), (3), (7) or (8) under the Securities Act or a non-”U.S.
      Person” in an “offshore transaction” under, and within the meaning of,
      Regulation S under the Securities Act. The Definitive Capital Securities
      Certificate evidencing the Initial Securities to be transferred, duly endorsed
      by the Purchaser, shall be surrendered to the Registrar at the time the transfer
      conditions specified in the immediately preceding sentence are satisfied or
      within five (5) Business Days after the Registrar has registered the transfer
      of
      such Initial Securities in the Securities Register, and promptly after such
      surrender, an Administrator on behalf of the Trust shall execute and, in the
      case of a Capital Security Certificate, the Institutional Trustee shall, and
      is
      authorized to, authenticate a Certificate in the name of the transferee or,
      if
      the transferee is a QIB desiring a beneficial interest in a Global Capital
      Security, in the name of the Depositary or its nominee, as applicable, as the
      new Holder of the Initial Securities evidenced thereby. Until the Definitive
      Capital Securities Certificate evidencing the Initial Securities so transferred
      is surrendered to the Registrar, such Initial Securities may not be transferred
      by such new Holder. No other conditions, restrictions or other provisions of
      this Declaration or any other document shall apply to a transfer of Initial
      Securities by the Purchaser.

    

    ARTICLE
      IX

    LIMITATION
      OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

    

    Section
      9.1.  Liability.

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    (c)  Pursuant
      to § 3 803 (a) of the Statutory Trust Act, the Holders of the Securities shall
      be entitled to the same limitation of personal liability extended to
      stockholders of private corporations for profit organized under the General
      Corporation Law of the State of Delaware, except as otherwise specifically
      set
      forth herein.

    

    Section
      9.2.   Exculpation.

    

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

    

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

    

    Section
      9.3.  Fiduciary
      Duty.

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

    Section
      9.4.  Indemnification.
      

    

    (a) 

    (i)  The
      Sponsor shall indemnify, to the fullest extent permitted by law, any Indemnified
      Person who was or is a party or is threatened to be made a party to any
      threatened, pending or completed action, suit or proceeding, whether civil,
      criminal, administrative or investigative (other than an action by or in the
      right of the Trust) by reason of the fact that such Person is or was an
      Indemnified Person
      against expenses (including attorneys’ fees and expenses), judgments, fines and
      amounts paid in settlement actually and reasonably incurred by such Person
      in
      connection with such action, suit or proceeding if such Person acted in good
      faith and in a manner such Person reasonably believed to be in or not opposed
      to
      the best interests of the Trust, and, with respect to any criminal action or
      proceeding, had no reasonable cause to believe such conduct was unlawful. The
      termination of any action, suit or proceeding by judgment, order, settlement,
      conviction, or upon a plea of nolo contendere or its equivalent, shall not,
      of
      itself, create a presumption that the Indemnified Person did not act in good
      faith and in a manner which such Person reasonably believed to be in or not
      opposed to the best interests of the Trust, and, with respect to any criminal
      action or proceeding, had reasonable cause to believe that such conduct was
      unlawful.

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    (v)  To
      the
      fullest extent permitted by law, expenses (including attorneys’ fees and
      expenses) incurred by an Indemnified Person in defending a civil, criminal,
      administrative or investigative action, suit or proceeding referred to in
      paragraphs (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor
      in
      advance of the final disposition of such action, suit or proceeding upon receipt
      of an undertaking by or on behalf of such Indemnified Person to repay such
      amount if it shall ultimately be determined that such Person is not entitled
      to
      be indemnified by the Sponsor as authorized in this Section 9.4(a).
      Notwithstanding the foregoing, no advance shall be made by the Sponsor if a
      determination is reasonably and promptly made (1) in the case of a Company
      Indemnified Person (A) by the Administrators by a majority vote of a Quorum
      of
      disinterested Administrators, (B) if such a Quorum is not obtainable, or, even
      if obtainable, if a Quorum of disinterested Administrators so directs, by
      independent legal counsel in a written opinion or (C) by the Common Security
      Holder of the Trust, that, based upon the facts known to the Administrators,
      counsel or the Common Security Holder at the time such determination is made,
      such Indemnified Person acted in bad faith or in a manner that such Person
      either believed to be opposed to or did not believe to be in the best interests
      of the Trust, or, with respect to any criminal proceeding, that such Indemnified
      Person believed or had reasonable cause to believe such conduct was unlawful,
      or
      (2) in the case of a Fiduciary Indemnified Person, by independent legal counsel
      in a written opinion that, based upon the facts known to the counsel at the
      time
      such determination is made, such Indemnified Person acted in bad faith or in
      a
      manner that such Indemnified Person either believed to be opposed to or did
      not
      believe to be in the best interests of the Trust, or, with respect to any
      criminal proceeding, that such Indemnified Person believed or had reasonable
      cause to believe such conduct was unlawful. In no event shall any advance be
      made (i) to a Company Indemnified Person in instances where the Administrators,
      independent legal counsel or the Common Security Holder reasonably determine
      that such Person deliberately breached such Person’s duty to the Trust or its
      Common or Capital Security Holders or (ii) to a Fiduciary Indemnified Person
      in
      instances where independent legal counsel promptly and reasonably determines
      in
      a written opinion that such Person deliberately breached such Person’s duty to
      the Trust or its Common or Capital Security Holders.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) The
      Sponsor shall indemnify, to the fullest extent permitted by applicable law,
      each
      Indemnified Person from and against any and all loss, damage, liability, tax
      (other than taxes based on the income of such Indemnified Person), penalty,
      expense or claim of any kind or nature whatsoever incurred by such Indemnified
      Person arising out of or in connection with or by reason of the creation,
      administration or termination of the Trust, or any act or omission of such
      Indemnified Person in good faith on behalf of the Trust and in a manner such
      Indemnified Person reasonably believed to be within the scope of authority
      conferred on such Indemnified Person by this Declaration, except that no
      Indemnified Person shall be entitled to be indemnified in respect of any loss,
      damage, liability, tax, penalty, expense or claim by such Indemnified Person
      by
      reason of negligence, willful misconduct or bad faith with respect to such
      acts
      or omissions.

    

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

    

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

    

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

    

    (f) The
      indemnification and advancement of expenses provided by, or granted pursuant
      to,
      this Section shall, unless otherwise provided when authorized or ratified,
      continue as to a Person who has ceased to be an Indemnified Person and shall
      inure to the benefit of the heirs, executors and administrators of such a
      Person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g) The
      provisions of this Section shall survive the termination of this Declaration
      or
      the earlier resignation or removal of the Institutional Trustee. The obligations
      of the Sponsor under this Section to compensate and indemnify the Trustees
      and
      to pay or reimburse the Trustees for expenses, disbursements and advances shall
      constitute additional indebtedness hereunder. Such additional indebtedness
      shall
      be secured by a lien prior to that of the Securities upon all property and
      funds
      held or collected by the Trustees as such, except funds held in trust for the
      benefit of the Holders of particular Capital Securities, provided,
      that
      the Sponsor is the Holder of the Common Securities.

    

    Section
      9.5.  Outside
      Businesses.
      Any
      Covered Person, the Sponsor, the Delaware Trustee and the Institutional Trustee
      (subject to Section 4.3(c)) may engage in or possess an interest in other
      business ventures of any nature or description, independently or with others,
      similar or dissimilar to the business of the Trust, and the Trust and the
      Holders of Securities shall have no rights by virtue of this Declaration in
      and
      to such independent ventures or
      the
      income or profits derived therefrom, and the pursuit of any such venture, even
      if competitive with the business of the Trust, shall not be deemed wrongful
      or
      improper. None of any Covered Person, the Sponsor, the Delaware Trustee or
      the
      Institutional Trustee shall be obligated to present any particular investment
      or
      other opportunity to the Trust even if such opportunity is of a character that,
      if presented to the Trust, could be taken by the Trust, and any Covered Person,
      the Sponsor, the Delaware Trustee and the Institutional Trustee shall have
      the
      right to take for its own account (individually or as a partner or fiduciary)
      or
      to recommend to others any such particular investment or other opportunity.
      Any
      Covered Person, the Delaware Trustee and the Institutional Trustee may engage
      or
      be interested in any financial or other transaction with the Sponsor or any
      Affiliate of the Sponsor, or may act as depositary for, trustee or agent for,
      or
      act on any committee or body of holders of, securities or other obligations
      of
      the Sponsor or its Affiliates.

    

    Section
      9.6.  Compensation:
      Fee.

    

    (a)  The
      Sponsor agrees:

    

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

    

    (ii)  except
      as
      otherwise expressly provided herein, to reimburse each of the Trustees upon
      request for all reasonable, documented expenses, disbursements and advances
      incurred or made by such Person in accordance with any provision of this
      Declaration (including the reasonable compensation and the expenses and
      disbursements of such Person’s agents and counsel), except any such expense,
      disbursement or advance attributable to such Person’s negligence, willful
      misconduct or bad faith.

    

    (b)  The
      provisions of this Section shall survive the dissolution of the Trust and the
      termination of this Declaration and the removal or resignation of any
      Trustee.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      X

    ACCOUNTING

    

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

    

    Section
      10.2.  Certain
      Accounting Matters.

    

    (a)  At
      all
      times during the existence of the Trust, the Administrators shall keep, or
      cause
      to be kept, at the principal office of the Trust in the United States, as
      defined for purposes of Treasury Regulations § 301.7701-7, full books of
      account, records and supporting documents, which shall reflect in reasonable
      detail each transaction of the Trust. The books of account shall be maintained
      on the accrual method of accounting, in accordance with generally accepted
      accounting principles, consistently applied.

    

    (b)  The
      Sponsor shall cause the Administrators to deliver, by hardcopy or electronic
      transmission, (i) to each Holder of Securities each Report on Form 10-KSB (or
      10-K, if applicable) and Form 10-QSB (or 10-Q, if applicable), if any, prepared
      by the Sponsor and filed
      with the Commission in accordance with the Exchange Act, within 10 Business
      Days
      after the filing thereof or (ii) if the Sponsor is (a) not then subject to
      Section 13 or 15(d) of the Exchange Act (a “Private Entity”) or (b) exempt from
      reporting pursuant to Rule 12g3-2(b) thereunder, the information required by
      Rule 144A(d)(4) under the Securities Act. Notwithstanding the foregoing, so
      long
      as a Holder of the Capital Securities is the Purchaser or an entity that holds
      a
      pool of trust preferred securities and/or debt securities as collateral for
      its
      securities or a trustee thereof, and the Sponsor is (i) a Private Entity that,
      on the date of original issuance of the Capital Securities, is required to
      provide audited consolidated financial statements to its primary regulatory
      authority, (ii) a Private Entity that, on the date of original issuance of
      the
      Capital Securities, is not required to provide audited consolidated financial
      statements to its primary regulatory authority, on the date of original issuance
      of the Capital Securities but subsequently becomes subject to the audited
      consolidated financial statement reporting requirements of that regulatory
      authority or (iii) subject to Section 13 or 15(d) of the Exchange Act on the
      date of original issuance of the Capital Securities or becomes so subject after
      the date hereof but subsequently becomes a Private Entity, then, within 90
      days
      after the end of each fiscal year, beginning with the fiscal year in which
      the
      Capital Securities were originally issued if the Sponsor was then subject to
      (x)
      Section 13 or 15(d) of the Exchange Act or (y) audited consolidated financial
      statement reporting requirements of its primary regulatory authority or,
      otherwise, the earliest fiscal year in which the Sponsor becomes subject to
      (1)
      Section 13 or 15(d) of the Exchange Act or (2) the audited consolidated
      financial statement reporting requirements of its primary regulatory authority,
      the Sponsor shall deliver, by hardcopy or electronic transmission, to each
      Holder of Securities, unless otherwise provided pursuant to the preceding
      sentence, (A) a copy of the Sponsor’s audited consolidated financial statements
      (including balance sheet and income statement) covering the related annual
      period and (B) the report of the independent accountants with respect to such
      financial statements. In addition to the foregoing, the Sponsor shall deliver
      to
      each Holder of Securities within 90 days after the end of each Fiscal Year
      of
      the Trust, annual financial statements of the Trust, including a balance sheet
      of the Trust as of the end of such Fiscal Year and the statements of income
      or
      loss for the Fiscal Year then ended, that are prepared at the principal office
      of the Trust in the United States, as defined for purposes of Treasury
      Regulations § 301.7701-7.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

    (e)  So
      long
      as a Holder of the Capital Securities is Sandler O’Neill & Partners, L.P. or
      an entity that holds a pool of trust preferred securities and/or debt securities
      or a trustee thereof, the Sponsor shall cause the Administrators to deliver
      the
      Sponsor’s reports on Forms
      FR
      Y-6, FR Y-9C and FR Y-9LP to such Holder promptly following their filing with
      the Federal Reserve.

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      XI

    AMENDMENTS
      AND MEETINGS

    

    Section
      11.1.  Amendments.

    

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

    

    (i)  the
      Institutional Trustee,

    

    (ii)  if
      the
      amendment affects the rights, powers, duties, obligations or immunities of
      the
      Delaware Trustee, the Delaware Trustee,

    

    (iii)  if
      the
      amendment affects the rights, powers, duties, obligations or immunities of
      the
      Administrators, the Administrators, and

    

    (iv)  the
      Holders of a Majority in liquidation amount of the Common
      Securities.

    

    (b)  Notwithstanding
      any other provision of this Article XI, no amendment shall be made, and any
      such
      purported amendment shall be void and ineffective:

    

    (i)  unless
      the Institutional Trustee shall have first received

    

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

    

    (B)  an
      opinion of counsel (who may be counsel to the Sponsor or the Trust) that such
      amendment is permitted by, and conforms to, the terms of this Declaration
      (including the terms of the Securities) and that all conditions precedent to
      the
      execution and delivery of such amendment have been satisfied; or

    

    (ii)  if
      the
      result of such amendment would be to

    

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

    

    (B)  reduce
      or
      otherwise adversely affect the
      powers of the Institutional Trustee in contravention of the Trust Indenture
      Act;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (C)  cause
      the
      Trust to be deemed to be an Investment Company required to be registered under
      the Investment Company Act; or

    

    (D)  cause
      the
      Debenture Issuer to be unable to treat an amount equal to the liquidation amount
      of the Capital Securities as “Tier 1 Capital” (or its equivalent) for purposes
      of the capital adequacy guidelines of the Federal Reserve (or any successor
      regulatory authority with jurisdiction over bank holding
      companies).

    

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

    

    (d)  In
      addition to and notwithstanding any other provision in this Declaration, without
      the consent of each affected Holder, this Declaration may not be amended to
      (i)
      change the amount or timing of any Distribution on the Securities or any
      redemption or liquidation provisions applicable to the Securities or otherwise
      adversely affect the amount of any Distribution required to be made in respect
      of the Securities as of a specified date or (ii) restrict the right of a Holder
      to institute suit for the enforcement of any Distributions or other amounts
      on
      or after their due date.

    

    (e)  Sections
      9.1 (b) and 9.1 (c) and this Section shall not be amended without the consent
      of
      all of the Holders of the Securities.

    

    (f)  The
      rights of the Holders of the Capital Securities and Common Securities, as
      applicable, under Article IV to increase or decrease the number of, and appoint
      and remove, Trustees shall not be amended without the consent of the Holders
      of
      a Majority in liquidation amount of the Capital Securities or Common Securities,
      as applicable.

    

    (g)  This
      Declaration may be amended by the Institutional Trustee and the I-colder of
      the
      Common Securities without the consent of the Holders of the Capital Securities
      to:

    

    (i)  cure
      any
      ambiguity;

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    provided,
      however,
      that no
      such amendment contemplated in clause (i), (ii), (iii) or (iv) shall adversely
      affect the powers, preferences, rights or interests of Holders of Capital
      Securities.

    

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

    

    (a)  Meetings
      of the Holders of the Capital Securities or the Common Securities may be called
      at any time by the Administrators (or as provided in the terms of such
      Securities) to consider and act on any matter on which Holders of such
      Securities are entitled to act under the terms of this Declaration, the terms
      of
      such Securities or the rules of any stock exchange on which the Capital
      Securities are listed or admitted for trading, if any. The Administrators shall
      call a meeting of the Holders of such Securities if directed to do so by the
      Holders of not less than 10% in liquidation amount of such Securities. Such
      direction shall be given by delivering to the Administrators one or more notices
      in a writing stating that the signing Holders of such Securities wish to call
      a
      meeting and indicating the general or specific purpose for which the meeting
      is
      to be called. Any Holders of Securities calling a meeting shall specify in
      writing the Certificates held by the Holders of the Securities exercising the
      right to call a meeting and only those Securities represented by such
      Certificates shall be counted for purposes of determining whether the required
      percentage set forth in the second sentence of this paragraph has been
      met.

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  Each
      Holder of a Security may authorize any Person to act for it by proxy on all
      matters in which a Holder of Securities is entitled to participate, including
      waiving notice of any meeting, or voting or participating at a
      meeting.

    No
      proxy
      shall be valid after the expiration of 11 months from the date thereof unless
      otherwise provided in the proxy. Every proxy shall be revocable at the pleasure
      of the Holder of the Securities executing it. Except as otherwise provided
      herein, all matters relating to the giving, voting or validity of proxies shall
      be governed by the General Corporation Law of the State of Delaware relating
      to
      proxies, and judicial interpretations thereunder, as if the Trust were a
      Delaware corporation and the Holders of the Securities were stockholders of
      a
      Delaware corporation. Each meeting of the Holders of the Securities shall be
      conducted by the Administrators or by such other Person that the Administrators
      may designate.

    

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

    

    ARTICLE
      XII

    REPRESENTATIONS
      OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

    

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

    

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

    

    (b)  the
      Institutional Trustee has a combined capital and surplus of at least fifty
      million U.S. dollars ($50,000,000);

    

    (c)  the
      Institutional Trustee is not an Affiliate of the Sponsor, nor does the
      Institutional Trustee offer or provide credit or credit enhancement to the
      Trust;

    

    (d)  the
      execution, delivery and performance by the Institutional Trustee of this
      Declaration has been duly authorized by all necessary action on the part of
      the
      Institutional Trustee, and this Declaration has been duly executed and delivered
      by the Institutional Trustee, and under Delaware law (excluding any securities
      laws) constitutes a legal, valid and binding obligation of the Institutional
      Trustee, enforceable against it in accordance with its terms, subject to
      applicable bankruptcy, reorganization, moratorium, insolvency and other similar
      laws affecting creditors’ rights generally and to general principles of equity
      and the discretion of the court (regardless of whether considered in a
      proceeding in equity or at law);

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

    (a)  if
      it is
      not a natural person, the Delaware Trustee is duly organized, validly existing
      and in good standing under the laws of the State of Delaware;

    

    (b)  if
      it is
      not a natural person, the execution, delivery and performance by the Delaware
      Trustee of this Declaration has been duly authorized by all necessary corporate
      action on the part of the Delaware Trustee, and this Declaration has been duly
      executed and delivered by
      the
      Delaware Trustee, and under Delaware law (excluding any securities laws)
      constitutes a legal, valid and binding obligation of the Delaware Trustee,
      enforceable against it in accordance with its terms, subject to applicable
      bankruptcy, reorganization, moratorium, insolvency and other similar laws
      affecting creditors’ rights generally and to general principles of equity and
      the discretion of the court (regardless of whether considered in a proceeding
      in
      equity or at law);

    

    (c)  if
      it is
      not a natural person, the execution, delivery and performance of this
      Declaration by the Delaware Trustee does not conflict with or constitute a
      breach of the charter or by-laws of the Delaware Trustee;

    

    (d)  it
      has
      trust power and authority to execute and deliver, and to carry out and perform
      its obligations under the terms of, this Declaration;

    

    (e)  no
      consent, approval or authorization of, or registration with or notice to, any
      state or federal banking authority governing the trust powers of the Delaware
      Trustee is required for the execution, delivery or performance by the Delaware
      Trustee of this Declaration; and

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)  the
      Delaware Trustee is a natural person who is a resident of the State of Delaware
      or, if not a natural person, it is an entity which has its principal place
      of
      business in the State of Delaware and, in either case, a Person that satisfies
      for the Trust the requirements of §3807 of the Statutory Trust Act.

    

    ARTICLE
      XIII

    MISCELLANEOUS

    

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

    

    (a)  if
      given
      to the Trust, in care of the Administrators at the Trust’s mailing address set
      forth below (or such other address as the Trust may give notice of to the
      Holders of the Securities): Bay National Capital Trust I, c/o Bay National
      Corporation, 2328 West Joppa Road, Suite 325, Baltimore, Maryland 21093,
      Attention: Hugh W. Mohler, Telecopy: 410-494-2589, Telephone:
      410-494-2580;

    

    (b)  if
      given
      to the Delaware Trustee, at the mailing address set forth below (or such other
      address as the Delaware Trustee may give notice of to the Holders of the
      Securities): Wilmington
      Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, DE
      19890-0001, Attention: Corporate Capital Markets, Telecopy: 302-636-4140,
      Telephone: 302-651-1000;

    

    (c)  if
      given
      to the Institutional Trustee, at the Institutional Trustee’s mailing address set
      forth below (or such other address as the Institutional Trustee may give notice
      of to the Holders of the Securities): Wilmington Trust Company, Rodney Square
      North, 1100 North Market Street, Wilmington, DE 19890-0001, Attention: Corporate
      Capital Markets, Telecopy: 302-636-4140, Telephone: 302-651-1000;

    

    (d)  if
      given
      to the Holder of the Common Securities, at the mailing address of the Sponsor
      set forth below (or such other address as the Holder of the Common Securities
      may give notice of to the Trust): Bay National Corporation, 2328 West Joppa
      Road, Suite 325, Baltimore, Maryland 21093, Attention: Hugh W. Mohler, Telecopy:
      410-494-2589, Telephone: 410-494-2580; or

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      13.2.  Governing
      Law. This
      Declaration and the rights and obligations of the parties hereunder shall be
      governed by and interpreted in accordance with the law of the State of Delaware
      and all rights, obligations and remedies shall be governed by such laws without
      regard to the principles of conflict of laws of the State of Delaware or any
      other jurisdiction that would call for the application of the law of any
      jurisdiction other than the State of Delaware.

    

    Section
      13.3.  Submission
      to Jurisdiction.

    

    (a)  Each
      of
      the parties hereto agrees that any suit, action or proceeding arising out of
      or
      based upon this Declaration, or the transactions contemplated hereby, may be
      instituted in any of the courts of the State of New York and the United States
      District Courts, in each case located in the Borough of Manhattan, City and
      State of New York, and further agrees to submit to the jurisdiction of any
      competent court in the place of its corporate domicile in respect of actions
      brought against it as a defendant. In addition, each such party irrevocably
      waives, to the fullest extent permitted by law, any objection which it may
      now
      or hereafter have to the laying of the venue of such suit, action or proceeding
      brought in any such court and irrevocably waives any claim that any such suit,
      action or proceeding brought in any such court has been brought in an
      inconvenient forum and irrevocably waives any right to which it may be entitled
      on account of its place of corporate domicile. Each such party hereby
      irrevocably waives any and all right to trial by jury in any legal proceeding
      arising out of or relating to this Declaration or the transactions contemplated
      hereby. Each such party agrees that final judgment
      in any proceedings brought in such a court shall be conclusive and binding
      upon
      it and may be enforced in any court to the jurisdiction of which it is subject
      by a suit upon such judgment.

    

    (b)  Each
      of
      the Sponsor, the Trustees, the Administrators and the Holder of the Common
      Securities irrevocably consents to the service of process on it in any such
      suit, action or proceeding by the mailing thereof by registered or certified
      mail, postage prepaid, to it at its address given in or pursuant to Section
      13.1
      hereof.

    

    (c)  To
      the
      extent permitted by law, nothing herein contained shall preclude any party
      from
      effecting
      service of process in any lawful manner or from bringing any suit, action or
      proceeding in respect of this Declaration in any other state, country or
      place.

    

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

    

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

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    

    WILMINGTON
      TRUST COMPANY

    as
      Delaware Trustee

    

    By:/s/
      Denise M. Geran 

    Name:
      Denise M. Geran

    Title:
      Vice President

    

    

    WILMINGTON
      TRUST COMPANY

    as
      Institutional Trustee

    

    By:/s/
      Denise M. Geran 

    Name:
      Denise M. Geran

    Title:
      Vice President

    

    BAY
      NATIONAL CORPORATION

    as
      Sponsor

    

    By:/s/
      Hugh W. Mohler 

    Name:
      Hugh W. Mohler

    Title:
      President & Chair

    

    

    /s/
      Hugh W. Mohler 

    Hugh
      W.
      Mohler

    as
      Administrator

    

    

    /s/
      Mark A. Semanie 

    Mark
      A.
      Semanie

    as
      Administrator

    

    

    /s/
      Warren F. Boutilier 

    Warren
      F.
      Boutilier

    as
      Administrator

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      I

    TERMS
      OF CAPITAL SECURITIES AND COMMON SECURITIES

    

     

    

     

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    ANNEX
      I

     

    TERMS
      OF CAPITAL SECURITIES AND COMMON SECURITIES

     

    Pursuant
      to Section 6.1 of the Amended and Restated Declaration of Trust, dated as of
      December 12, 2005 (as amended from time to time, the “Declaration”), the
      designation, rights, privileges, restrictions, preferences and other terms
      and
      provisions of the Capital Securities and the Common Securities (collectively,
      the “Securities”) are set out below (each capitalized term used but not defined
      herein has the meaning set forth in the Declaration):

     

    ARTICLE
      XIV  Designation
      and Number.

    

    Section
      14.1.  Capital
      Securities.
      8,000
      Capital Securities of Bay National Capital Trust I (the “Trust”), with an
      aggregate liquidation amount with respect to the assets of the Trust of EIGHT
      MILLION Dollars ($8,000,000) and a liquidation amount with respect to the assets
      of he Trust of $1,000 per Capital Security, are hereby designated for the
      purposes of identification only as the “MMCapSsm”
(the
      “Capital Securities”). The Capital Security Certificates evidencing the Capital
      Securities shall be substantially in the form of Exhibit A-1 to the Declaration,
      with such changes and additions thereto or deletions therefrom as may be
      required by ordinary usage, custom or practice or to conform to the rules of
      any
      stock exchange on which the Capital Securities are listed, if any.

    

    Section
      14.2.  Common
      Securities.
      248
      Common Securities of the Trust (the “Common Securities”) will be evidenced by
      Common Security Certificates substantially in the form of Exhibit A-2 to the
      Declaration, with such changes and additions thereto or deletions therefrom
      as
      may be required by ordinary usage, custom or practice. In the absence of an
      Event of Default, the Common Securities will have an aggregate liquidation
      amount with respect to the assets of the Trust of TWO HUNDRED FORTY-EIGHT
      THOUSAND Dollars ($248,000) and a liquidation amount with respect to the assets
      of the Trust of $1,000 per Common Security.

    

    ARTICLE
      XV  Distributions.

    

    Distributions
      payable on each Security will be payable at a fixed rate of interest equal
      to
      7.20% per annum (the “Coupon Rate”). Distributions in arrears for more than one
      Distribution Period will bear interest thereon, compounded quarterly,
at
      the
      Coupon Rate (to the extent permitted by applicable law). The term
“Distributions”, as used herein, includes cash Distributions, any such
      compounded Distributions and any Additional Amounts payable on the Debentures
      unless otherwise stated. A Distribution is payable only to the extent that
      payments are made in respect of the Debentures held by the Institutional Trustee
      and to the extent the Institutional Trustee has funds legally available in
      the
      Property Account therefor. The amount of Distributions payable for any
      Distribution Period will be computed on the basis of a 360-day year consisting
      of twelve 30-day months.

    

    The
      term
“Distribution Period,”, as used herein, means (i) in the case of the first
      Distribution Period, the period from, and including, the date of original
      issuance of the Securities to, but excluding, the initial Distribution Payment
      Date and (ii) thereafter, from, and including, the first day following the
      end
      of the preceding Distribution Period to, but excluding, the applicable
      Distribution Payment Date or, in the case of the last Distribution Period,
      the
      related date of redemption.

     

    
      
        
        

      

      
        A-I-1

        
          

        

      

      
        
        

      

    

    (b) Distributions
      on the Securities will be cumulative, will accrue from the date of original
      issuance, and will be payable, subject to extension of Distribution Periods
      as
      described herein, quarterly in arrears on February 23, May 23, August 23 and
      November 23 of each year, commencing on February 23, 2006 (each, a “Distribution
      Payment Date”), and on any earlier date of redemption, as applicable. The
      Debenture Issuer has the right under the Indenture to defer payments of interest
      on the Debentures by extending the interest payment period for up to 20
      consecutive quarterly periods (each such extended interest payment period,
      together with all previous and future consecutive extensions thereof, is
      referred to herein as an “Extension Period”) at any time and from time to time
      on the Debentures, subject to the conditions described below and in the
      Indenture. No Extension Period may end on a date other than a Distribution
      Payment Date or extend beyond the Maturity Date, any Optional Redemption Date
      or
      the Special Redemption Date, as the case may be (each such term as defined
      herein). During any Extension Period, interest will continue to accrue on the
      Debentures, and interest on such accrued interest (such accrued interest and
      interest thereon referred to herein as “Deferred Interest”) will accrue, at an
      annual rate equal to the Coupon Rate, compounded quarterly from the date such
      Deferred Interest would have been payable were it not for the Extension Period,
      to the extent permitted by applicable law. At the end of any Extension Period,
      the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid
      on
      the Debentures; provided,
      however,
      that
      during any Extension Period, the Debenture Issuer may not (i) declare or pay
      any
      dividends or distributions on, or redeem, purchase, acquire, or make a
      liquidation payment with respect to, any of the Debenture Issuer’s capital
      stock, (ii) make any payment of principal or premium or interest on or repay,
      repurchase or redeem any debt securities of the Debenture Issuer that rank
      in
      all respects pari passu with or junior in interest to the Debentures or (iii)
      make any payment under any guarantees of the Debenture Issuer that rank in
      all
      respects
      pari passu with or junior in interest to the Guarantee (other than (a)
      repurchases, redemptions or other acquisitions of shares of capital stock of
      the
      Debenture Issuer (A) in connection with any employment contract, benefit plan
      or
      other similar arrangement with or for the benefit of one or more employees,
      officers, directors or consultants, (B) in connection with a dividend
      reinvestment or stockholder stock purchase plan or (C) in connection with the
      issuance of capital stock of the Debenture Issuer (or securities convertible
      into or exercisable for such capital stock), as consideration in an acquisition
      transaction entered into prior to the applicable Extension Period, (b) as a
      result of any exchange or conversion of any class or series of the Debenture
      Issuer’s capital stock (or any capital stock of a subsidiary of the Debenture
      Issuer) for any class or series of the Debenture Issuer’s capital stock or of
      any class or series of the Debenture Issuer’s indebtedness for any class or
      series of the Debenture Issuer’s capital stock, (c) the purchase of fractional
      interests in shares of the Debenture Issuer’s capital stock pursuant to the
      conversion or exchange provisions of such capital stock or the security being
      converted or exchanged, (d) any declaration of a dividend in connection with
      any
      stockholder’s rights plan, or the issuance of rights, stock or other property
      under any stockholder’s rights plan, or the redemption or repurchase of rights
      pursuant thereto, or (e) any dividend in the form of stock, warrants, options
      or
      other rights where the dividend stock or the stock issuable upon exercise of
      such warrants, options or other rights is the same stock as that on which the
      dividend is being paid or ranks pari passu with or junior in interest to such
      stock). Prior to the termination of any Extension Period, the Debenture Issuer
      may further extend such Extension Period, provided,
      that no
      Extension Period (including all previous and further
      consecutive extensions that are part of such Extension Period) shall exceed
      20
      consecutive quarterly periods. Upon the termination of any Extension Period
      and
      upon the payment of all Deferred Interest, the Debenture Issuer may commence
      a
      new Extension Period, subject to the requirements herein and in the Indenture.
      No interest or Deferred Interest (except any Additional Amounts that may be
      due
      and payable) shall be due and payable during an Extension Period, except at
      the
      end thereof, but Deferred Interest shall accrue upon each installment of
      interest that would otherwise have been due and payable during such Extension
      Period until such installment is paid.

    

    
      
        
        

      

      
        A-I-2

        
          

        

      

      
        
        

      

    

    As
      a
      consequence of any Extension Period, Distributions will be deferred.
      Notwithstanding any such deferral, Distributions will continue to accrue on
      the
      Securities, and Distributions on such accrued Distributions will accrue, at
      the
      Coupon Rate, compounded quarterly, to the extent permitted by applicable law.
      If
      Distributions are deferred, the Distributions due shall be paid on the date
      that
      such Extension Period terminates to Holders of the Securities as they appear
      on
      the books and records of the Trust on the regular record date immediately
      preceding the Distribution Payment Date on which such Extension Period
      terminates to the extent that the Trust has funds legally available for the
      payment of such Distributions in the Property Account of the Trust.

     

    The
      Trust’s fiends available for Distributions to the Holders of the Securities will
      be limited to payments received from the Debenture Issuer. The payment of
      Distributions out of moneys held by the Trust is guaranteed by the Guarantor
      pursuant to the Guarantee.

     

    (c) Distributions
      on the Securities on any Distribution Payment Date will be payable to the
      Holders thereof as they appear on the books and records of the Registrar on
      the
      relevant regular record dates. The relevant “regular record dates” shall be 15
      days before the relevant Distribution Payment Dates. Distributions payable
      on
      any Securities that are not punctually paid on any Distribution Payment Date,
      as
      a result of the Debenture Issuer having failed to make a payment under the
      Debentures, as the case may be, when due (taking into account any Extension
      Period), will cease to be payable to the Person in whose name such Securities
      are registered on the original relevant regular record date, and such defaulted
      Distributions will instead be payable to the Person in whose name such
      Securities are registered on the regular record date preceding the Distribution
      Payment Date on which the related Extension Period terminates or, in
      the
      absence of an Extension Period, a special record date therefor selected by
      the
      Administrators.

     

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

     

    (e) If
      any
      Distribution Payment Date other than any date of redemption falls on a day
      that
      is not a Business Day, then Distributions payable will be paid on, and such
      Distribution Payment Date will be moved to, the next succeeding Business Day,
      and no additional Distributions will accrue for each day that such payment
      is
      delayed as a result thereof.

     

    
      
        
        

      

      
        A-I-3

        
          

        

      

      
        
        

      

    

    ARTICLE
      XVI  Liquidation
      Distribution Upon Dissolution.
      In the
      event of the voluntary or involuntary liquidation, dissolution, winding-up
      or
      termination of the Trust (each, a“Liquidation”),
      the Holders of the Securities will be entitled to receive out of the assets
      of
      the Trust legally available for distribution to Holders of the Securities,
      after
      satisfaction of liabilities to creditors of the Trust (to the extent not
      satisfied by the Debenture Issuer), an amount in cash equal to the aggregate
      of
      the liquidation amount of $1,000 per Security plus unpaid Distributions accrued
      thereon to the date of payment (collectively, the “Liquidation Distribution”),
      unless: (i) the Debentures have been redeemed in full in accordance with the
      terms thereof and of the Indenture; or (ii) the Debentures in an aggregate
      principal amount equal to the aggregate liquidation amount of such Securities
      and bearing accrued and unpaid interest in an amount equal to the accrued and
      unpaid Distributions on such Securities, after paying or making reasonable
      provision to pay all claims and obligations of the Trust in accordance with
      Section 3808(e) of the Statutory Trust Act, shall be distributed on a Pro Rata
      basis to the Holders of the Securities in exchange for such
      Securities.

    

    The
      Sponsor, as the Holder of all of the Common Securities, has the right at any
      time, upon receipt by the Debenture Issuer and the Institutional Trustee for
      the
      benefit of the Trust of (i) an opinion of nationally recognized tax counsel
      that
      Holders will not recognize any gain or loss for United States Federal income
      tax
      purposes as a result of the distribution of Debentures, to dissolve the Trust
      (including, without limitation, upon the occurrence of a Tax Event, an
      Investment Company Event or a Capital Treatment Event, each as defined herein)
      and (ii) prior approval from the Board of Governors of the Federal Reserve
      System (the “Federal Reserve”) (if then required under applicable capital
      guidelines or policies of the Federal Reserve) and, after satisfaction of
      liabilities to creditors of the Trust, cause the Debentures to be distributed
      to
      the Holders of the Securities on a Pro Rata basis in accordance with the
      aggregate liquidation amount thereof.

     

    The
      Trust
      shall dissolve on the first to occur of (i) February 23, 2041, the expiration
      of
      the term of the Trust, (ii) a Bankruptcy Event with respect to the Sponsor,
      the
      Trust or the Debenture Issuer, (iii) (other than in connection with a merger,
      consolidation or similar transaction not prohibited by the Indenture, this
      Declaration or the Guarantee, as the case may be) the filing of a certificate
      of
      dissolution or its equivalent with respect to the Sponsor or upon the revocation
      of the charter of the Sponsor and the expiration of 90 days after the date
      of
      revocation without a reinstatement thereof, (iv) the distribution of all of
      the
      Debentures to the Holders of the Securities, upon exercise of the right of
      the
      Holders of all of the outstanding Common Securities to dissolve the Trust as
      described above, (v) the entry of a decree of a judicial dissolution of any
      Holder of the Common Securities, the Sponsor, the Trust or the Debenture Issuer,
      (vi) when all of the Securities are then subject to redemption and the amounts
      necessary for redemption thereof shall have been paid to the Holders in
      accordance with the terms of the Securities or (vii) before the issuance of
      any
      Securities, with the consent of all of the Trustees and the Sponsor. As soon
      as
      practicable after the dissolution of the Trust and upon completion of the
      winding up of the Trust, the Trust shall terminate upon the filing of a
      certificate of cancellation with the Secretary of State of the State of
      Delaware.

     

    Notwithstanding
      the foregoing, if a Liquidation of the Trust occurs as described in clause
      (i),
      (ii), (iii) or (v) in the immediately preceding paragraph, the Trust shall
      be
      liquidated by the Institutional Trustee of the Trust as expeditiously as such
      Trustee determines to be practical by distributing, after satisfaction of
      liabilities to creditors of the Trust (to the extent not satisfied by the
      Debenture Issuer) as provided by applicable law, to the Holders of the
      Securities, the
      Debentures on a Pro Rata basis, unless such distribution is determined by the
      Institutional Trustee not to be practical, in which event such Holders will
      be
      entitled to receive on a Pro Rata basis, out of the assets of the Trust legally
      available for distribution to the Holders of the Securities, after satisfaction
      of liabilities to creditors of the Trust (to the extent not satisfied by the
      Debenture Issuer), an amount in cash equal to the Liquidation Distribution.
      A
      Liquidation of the Trust pursuant to clause (iv) of the immediately preceding
      paragraph shall occur if the Institutional Trustee determines that such
      Liquidation is practical by distributing, after satisfaction of liabilities
      to
      creditors of the Trust (to the extent not satisfied by the Debenture Issuer),
      to
      the Holders of the Securities on a Pro Rata basis, the Debentures, and such
      distribution occurs.

     

    
      
        
        

      

      
        A-I-4

        
          

        

      

      
        
        

      

    

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

     

    Upon
      any
      Liquidation of the Trust involving a distribution of the Debentures, if at
      the
      time of such Liquidation, the Capital Securities were rated by at least one
      nationally-recognized statistical rating organization, the Debenture Issuer
      will
      use its reasonable best efforts to obtain from at least one such or other rating
      organization a rating for the Debentures.

     

    After
      the
      date for any distribution of the Debentures upon any Liquidation of the Trust,
      (i) the Securities of the Trust will be deemed to be no longer outstanding,
      (ii)
      any certificates representing the Capital Securities will be deemed to represent
      undivided beneficial interests in such of the Debentures as have an aggregate
      principal amount equal to the aggregate liquidation amount of such Capital
      Securities and bearing accrued and unpaid interest equal to accrued and unpaid
      Distributions on such Capital Securities until such certificates are presented
      to the Debenture Issuer or its agent for transfer or reissuance (and until
      such
      certificates are so surrendered, no payments shall be made to Holders of
      Securities in respect of any payments due and payable under the Debentures)
      and
      (iii) all rights of Holders of Securities shall cease, except the right of
      such
      Holders to receive Debentures upon surrender of certificates representing such
      Securities.

     

    ARTICLE
      XVII  Redemption
      and Distribution.

    

    (a)  The
      Debentures will mature on February 23, 2036 (the “Maturity Date”) at an amount
      in cash equal to 100% of the principal amount thereof plus unpaid interest
      accrued thereon to such date (the “Maturity Redemption Price”). The Debentures
      may be redeemed by the
      Debenture Issuer, at its option, in whole or in part, on any Distribution
      Payment Date on or after February 23, 2011 (each, an “Optional Redemption
      Date”), at the Optional Redemption Price, upon not less than 30 nor more than 60
      days’ prior written notice to holders of such Debentures. In addition, upon the
      occurrence and continuation of a Tax Event, an Investment Company Event or
      a
      Capital Treatment Event, the Debentures may be redeemed by the Debenture Issuer,
      at its option, in whole but not in part, at any time within 90 days following
      the occurrence of such Tax Event, Investment Company Event or Capital Treatment
      Event, as the case may be (the “Special Redemption Date”), at the Special
      Redemption Price, upon not less than 30 nor more than 60 days’ prior written
      notice to holders of the Debentures so long as such Tax Event, Investment
      Company Event or Capital Treatment Event, as the case may be, is continuing.
      In
      each case, the right of the Debenture Issuer to redeem the Debentures prior
      to
      maturity is subject to the Debenture Issuer and the Trust having received prior
      approval from the Federal Reserve, if then required under applicable capital
      guidelines or policies of the Federal Reserve.

    

    
      
        
        

      

      
        A-I-5

        
          

        

      

      
        
        

      

    

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

     

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

     

    “Capital
      Treatment Event” means, if the Debenture Issuer is organized and existing under
      the laws of the United States or any state thereof or the District of Columbia,
      the receipt by the Debenture Issuer and the Trust of an opinion of counsel
      experienced in such matters to the effect that, as a result of any amendment
      to,
      or change in, the laws, rules or regulations of the United States or any
      political subdivision thereof or therein, or as the result of any official
      or
      administrative pronouncement or action or decision interpreting or applying
      such
      laws, rules or regulations, which amendment or change is effective or which
      pronouncement, action or decision is announced on or after the date of original
      issuance of the Debentures, there is
      more
      than an insubstantial risk that the Debenture Issuer will not, within 90 days
      of
      the date of such opinion, be entitled to treat Capital Securities as “Tier 1
      Capital” (or the then equivalent thereof) for purposes of the capital adequacy
      guidelines of the Federal Reserve (or any successor regulatory authority with
      jurisdiction over bank holding companies), as then in effect and applicable
      to
      the Debenture Issuer; provided, however, that the inability of the Debenture
      Issuer to treat all or any portion of the aggregate Liquidation Amount of the
      Capital Securities as “Tier 1 Capital” shall not constitute the basis for a
      Capital Treatment Event if such inability results from the Debenture Issuer
      having preferred stock, minority interests in consolidated subsidiaries and
      any
      other class of security or interest which the Federal Reserve (or any successor
      regulatory authority with jurisdiction over bank holding companies) may now
      or
      hereafter accord “Tier 1 Capital” treatment that, in the aggregate, exceed the
      amount which may now or hereafter qualify for treatment as “Tier 1 Capital”
under applicable capital adequacy guidelines of the Federal Reserve (or any
      successor regulatory authority with jurisdiction over bank holding companies);
      provided, further, however, that the distribution of the Debentures in
      connection with the Liquidation of the Trust by the Debenture Issuer shall
      not
      in and of itself constitute a Capital Treatment Event unless such Liquidation
      shall have occurred in connection with a Tax Event or an Investment Company
      Event. For the avoidance of doubt, the inability of the Debenture Issuer to
      treat all or any portion of the aggregate Liquidation Amount of the Capital
      Securities as “Tier 1 Capital” as a result of the changes effected by the final
      rule adopted by the Federal Reserve on March 1, 2005 shall not constitute the
      basis for a Capital Treatment Event.

     

    
      
        
        

      

      
        A-I-6

        
          

        

      

      
        
        

      

    

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

     

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

     

    “Special
      Redemption Price” means, with respect to the redemption of the Debentures
      following a Special Event, an amount in cash equal to 104.00% of the principal
      amount of Debentures to be redeemed prior to February 23, 2007 and thereafter
      equal to the percentage of the principal amount of the Debentures that is
      specified below for the Special Redemption Date plus, in each case, unpaid
      interest accrued thereon to the Special Redemption Date:

    

      
        	
                Special
                  Redemption During the 12-Month

              	 
	
                Period
                  Beginning February 23,

              	
                Percentage
                  of Principal Amount

              
	 	 
	
                2007

                 

              	
                103.20%

                 

              
	
                2008

                 

              	
                102.40%

                 

              
	
                2009

                 

              	
                101.60%

                 

              
	
                2010

                 

              	
                100.80%

                 

              
	
                2011
                  and thereafter

              	
                100.00%

              

      

      
        
          
          

        

        
          A-I-7

          
            

          

        

        
          
          

        

      

    (b)  Upon
      any
      repayment of the Debentures at maturity or in whole or in part upon redemption
      (other than following the distribution of the Debentures to the Holders of
      the
      Securities), the proceeds from such repayment shall concurrently be applied
      to
      redeem Pro Rata, at a redemption price corresponding to the applicable Maturity
      Redemption Price, Optional Redemption Price or Special Redemption Price for
      the
      Debentures, as the case may be, Securities having an aggregate liquidation
      amount equal to the aggregate principal amount of the Debentures so repaid;
      provided,
      however,
      that
      Holders of such Securities shall be given not less than 30 nor more than 60
      days’ prior written notice of such redemption (other than a redemption resulting
      from the maturity of the Debentures on the Maturity Date).

    

    (c)  If
      fewer
      than all the outstanding Securities are to be so redeemed, the Common Securities
      and the Capital Securities will be redeemed Pro Rata and the Capital Securities
      to be redeemed will be as described in Section 4(e)(ii) below.

    

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

    

    (e)  Redemption
      or Distribution Procedures.

    

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

     

    (ii) In
      the
      event that fewer than all the outstanding Capital Securities are to be redeemed,
      the Capital Securities to be redeemed shall be redeemed Pro Rata from each
      Holder.

     

    (iii) If
      the
      Securities are to be redeemed and the Trust gives a Redemption/Distribution
      Notice, which notice may only be issued if the Debentures are redeemed or repaid
      as set out in this Section (which notice will be irrevocable), then,
provided, that
      the
      Institutional Trustee has a sufficient amount of cash in connection with the
      related redemption or maturity of the Debentures, the Institutional Trustee
      will, with respect to Book-Entry Capital Securities, irrevocably deposit with
      the Depositary for such Book-Entry Capital Securities, the price payable upon
      redemption of the Securities, and will give such Depositary irrevocable
      instructions and authority to pay the price payable upon
      redemption of such Book-Entry Capital Securities to Beneficial Owners of the
      Capital Securities. With respect to Capital Securities that are not Book-Entry
      Capital Securities, the Institutional Trustee will pay the price payable upon
      redemption of such Securities to the Holders of such Securities by check mailed
      to the address of each such Holder appearing on the books and records of the
      Trust on the related date of redemption. If a Redemption/Distribution Notice
      shall have been given and funds deposited as required, then immediately prior
      to
      the close of business on the date of such deposit, Distributions will cease
      to
      accrue on the Securities so subject to redemption and all rights of Holders
      of
      such Securities so subject to redemption will cease, except the right of the
      Holders of such Securities to receive the applicable price specified in Section
      4(a), but without interest on such price. If any date of redemption of the
      Securities falls on a day that is not a Business Day, then payment of all
      amounts payable on such date will be made on the next succeeding Business Day,
      and no additional Distributions will accrue in respect of such payment on such
      next succeeding Business Day. If any amount payable upon redemption of the
      Securities is improperly withheld or refused and not paid either by the Trust,
      the Debenture Issuer or the Sponsor as guarantor pursuant to the Guarantee,
      Distributions on such Securities will continue to accrue at the Coupon Rate
      applicable from the date of redemption to the actual date of payment, in which
      case the actual payment date will be considered the date of redemption for
      purposes of calculating the price payable upon redemption of the Securities.
      In
      the event of any redemption of the Capital Securities issued by the Trust in
      part, the Trust shall not be required to (i) issue, register the transfer of
      or
      exchange any Security during a period beginning at the opening of business
      15
      days before any selection for redemption of the Capital Securities and ending
      at
      the close of business on the earliest date on which the relevant notice of
      redemption is deemed to have been given to all Holders of the Capital Securities
      to be so redeemed or (ii) register the transfer of or exchange any Capital
      Securities so selected for redemption, in whole or in part, except for the
      unredeemed portion of any Capital Securities being redeemed in
      part.

     

    
      
        
        

      

      
        A-I-8

        
          

        

      

      
        
        

      

    

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

     

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

     

    5. Voting
      _Rights - Capital Securities.
      (a)
      Except as provided under Sections 5(b) and 7 and as otherwise required by law
      and the Declaration, the Holders of the Capital Securities will have no voting
      rights. The Administrators are required to call a meeting of the Holders of
      the
      Capital Securities if directed to do so by Holders of not less than 10% in
      liquidation amount of the Capital Securities.

     

    (b) Subject
      to the requirements of obtaining a tax opinion by the Institutional Trustee
      in
      certain circumstances set forth in the last sentence of this paragraph, the
      Holders of a Majority
      in liquidation amount of the Capital Securities, voting separately as a class,
      have the right to direct the time, method, and place of conducting any
      proceeding for any remedy available to the Institutional Trustee, or exercising
      any trust or power conferred upon the Institutional Trustee under the
      Declaration, including (i) directing the time, method, place of conducting
      any
      proceeding for any remedy available to the Debenture Trustee, or exercising
      any
      trust or power conferred on the Debenture Trustee with respect to the
      Debentures, (ii) waiving any past default and its consequences that are waivable
      under the Indenture, (iii) exercising any right to rescind or annul an
      acceleration of the principal of all the Debentures or (iv) consenting on behalf
      of all the Holders of the Capital Securities to any amendment, modification
      or
      termination of the Indenture or the Debentures where such consent shall be
      required; provided,
      however,
      that,
      where a consent or action under the Indenture would require the consent or
      act
      of the holders of greater than a simple majority in principal amount of
      Debentures (a “Super Majority”) affected thereby, the Institutional Trustee may
      only give such consent or take such action at the written direction of the
      Holders of not less than the proportion in liquidation amount of the Capital
      Securities outstanding which the relevant Super Majority represents of the
      aggregate principal amount of the Debentures outstanding. If the Institutional
      Trustee fails to enforce its rights under the Debentures after the Holders
      of a
      Majority or Super Majority, as the case may be, in liquidation amount of such
      Capital Securities have so directed the Institutional Trustee, to the fullest
      extent permitted by law, a Holder of the Capital Securities may institute a
      legal proceeding directly against the Debenture Issuer to enforce the
      Institutional Trustee’s rights under the Debentures without first instituting
      any legal proceeding against the Institutional Trustee or any other person
      or
      entity. Notwithstanding the foregoing, if an Event of Default has occurred
      and
      is continuing and such event is attributable to the failure of the Debenture
      Issuer to pay interest or premium, if any, on or principal of the Debentures
      on
      the date such interest, premium, if any, or principal is payable (or in the
      case
      of redemption, the date of redemption), then a Holder of the Capital Securities
      may directly institute a proceeding for enforcement of payment, on or after
      the
      respective due dates specified in the Debentures, to such Holder directly of
      the
      principal of or premium, if any, or interest on the Debentures having an
      aggregate principal amount equal to the aggregate liquidation amount of the
      Capital Securities of such Holder. The Institutional Trustee shall notify all
      Holders of the Capital Securities of any default actually known to the
      Institutional Trustee with respect to the Debentures unless (x) such default
      has
      been cured prior to the giving of such notice or (y) the Institutional Trustee
      determines in good faith that the withholding of such notice is in the interest
      of the Holders of such Capital Securities, except where the default relates
      to
      the payment of principal of or interest on any of the Debentures. Such notice
      shall state that such Indenture Event of Default also constitutes an Event
      of
      Default hereunder. Except with respect to directing the time, method and place
      of conducting a proceeding for a remedy, the Institutional Trustee shall not
      take any of the actions described in clause (i), (ii), (iii) or (iv) above
      unless the Institutional Trustee has obtained an opinion of tax counsel to
      the
      effect that, as a result of such action, the Trust will not be classified as
      other than a grantor trust for United States federal income tax
      purposes.

     

    
      
        
        

      

      
        A-I-9

        
          

        

      

      
        
        

      

    

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

     

    
      
        
        

      

      
        A-I-10

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        A-I-11

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

    (a) In
      the
      event the consent of the Institutional Trustee, as the holder of the Debentures,
      is required under the Indenture with respect to any amendment, modification
      or
      termination of the Indenture or the Debentures, the Institutional Trustee shall
      request the written direction of the Holders of the Securities with respect
      to
      such amendment, modification or termination and shall vote with respect to
      such
      amendment, modification, or termination as directed by a Majority in liquidation
      amount of the Securities voting together as a single class; provided,
      however,
      that
      where a consent under the Indenture would require a Super Majority, the
      Institutional Trustee may only give such consent at the written direction of
      the
      Holders of not less than the proportion in liquidation amount of the Securities
      which the relevant Super Majority represents of the aggregate principal amount
      of the Debentures outstanding.

     

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

     

    
      
        
        

      

      
        A-I-12

        
          

        

      

      
        
        

      

    

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

     

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

     

    9. Ranking.
      The
      Capital Securities rank pari passu with, and payment thereon shall be made
      Pro
      Rata with, the Common Securities except that, where an Event of Default has
      occurred and is continuing, the rights of Holders of the Common Securities
      to
      receive payment of Distributions and payments upon Liquidation, redemption
      and
      otherwise are subordinated to the rights of the Holders of the Capital
      Securities with the result that no payment of any Distribution on, or any amount
      payable upon the redemption of, any Common Security, and no payment to the
      Holder of any Common Security on account of the Liquidation of the Trust, shall
      be made unless payment in full in cash of (i) all accrued and unpaid
      Distributions on all outstanding Capital Securities for all
      Distribution
      Periods terminating on or prior thereto, (ii) all amounts payable upon Capital
      Securities then subject to redemption and (iii) all amounts payable upon Capital
      Securities in the event of the Liquidation of the Trust, in each case, shall
      have been made or provided for, and all funds immediately available to the
      Institutional Trustee shall first be applied to the payment in full in cash
      of
      the amounts specified in clause (i), (ii) and (iii) above that are then due
      and
      payable.

     

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

     

    11. No
      Preemptive Rights.
      The
      Holders of the Securities shall have no, and the issuance of the Securities
      is
      not subject to, preemptive or similar rights to subscribe for any additional
      securities.

     

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

     

    

     

    
      
        
        

      

      
        A-I-13

        
          

        

      

      
        
        

      

    

    Exhibit
      A-1

     

    Form
      of
      Capital Security Certificate

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1

     

    FORM
      OF CAPITAL SECURITY CERTIFICATE

     

    [FORM
      OF
      FACE OF SECURITY]

     

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

     

    UNLESS
      THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE TRUST
      OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
      SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
      IS
      MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
      OR
      OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
      HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]2 

     

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

    

      

      
        2
          Only
          applicable if this Capital Security is a Global Capital
          Security.

      

    

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

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

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

    
      
        
        

      

      
        A-1-3

        
          

        

      

      
        
        

      

    

    

      
        	
                Certificate
                  Number [______]

                 

              	
                Number
                  of Capital Securities 8,000

                 

              

      
CUSIP
      NO
      [______]

     

    Certificate
      Evidencing Capital Securities

     

    of

     

    BAY
      NATIONAL CAPITAL TRUST I

     

    Capital
      Securities

     

    (liquidation
      amount $1,000 per Capital Security)

     

    Bay
      National Capital Trust I, a statutory trust created under the laws of the State
      of Delaware (the “Trust”), hereby certifies that Sandier O’Neill & Partners,
      L.P. is the registered owner (the “Holder”) of 8,000 capital securities of the
      Trust representing undivided beneficial interests in the assets of the Trust,
      designated as MMCapSsm
      (liquidation amount $1,000 per Capital Security) (the “Capital Securities”).
      Subject to the Declaration (as defined below), the Capital Securities are
      transferable on the books and records of the Trust, in person or by a duly
      authorized attorney, upon surrender of this Certificate duly endorsed and in
      proper form for transfer. The Capital Securities represented hereby are issued
      pursuant to, and the designation, rights, privileges, restrictions, preferences
      and other terms and provisions of the Capital Securities shall in all respects
      be subject to, the provisions of the Amended and Restated Declaration of Trust
      of the Trust, dated as of December 12, 2005, among Hugh W. Mohler, Mark A.
      Semanie and Warren F. Boutilier, as Administrators, Wilmington Trust Company,
      as
      Delaware Trustee, Wilmington Trust Company, as Institutional Trustee, Bay
      National Corporation, as Sponsor, and the holders from time to time of undivided
      beneficial interests in the assets of the Trust, including the designation
      of
      the terms of the Capital Securities as set forth in Annex I to the Declaration,
      as the same may be amended from time to time (the “Declaration”). Capitalized
      terms used herein but not defined shall have the meaning given them in the
      Declaration. The Holder is entitled to the benefits of the Guarantee and the
      Indenture to the extent provided therein. The Sponsor will provide a copy of
      the
      Declaration, the Guarantee, and the Indenture to the Holder without charge
      upon
      written request to the Sponsor at its principal place of business.

     

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

     

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

     

    This
      Certificate and the Capital Securities evidenced hereby are governed by, and
      shall be construed in accordance with, the laws of the State of Delaware,
      without regard to principles of conflict of laws.

     

    This
      Certificate may contain more than one counterpart of the signature page and
      this
      Certificate may be executed and authenticated by the affixing of the signature
      of an Administrator on behalf of the Trust, and the signature of the
      Institutional Trustee providing authentication, to any of such counterpart
      signature pages. All of such counterpart signature pages shall be read as though
      one, and they shall have the same force and effect as though the Trust had
      executed, and the Institutional Trustee had authenticated, a single signature
      page.

     

    
      
        
        

      

      
        A-1-4

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Trust has duly executed this Certificate

    

    
      	 	
              BAY
                NATIONAL CAPITAL TRUST I

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Name

            
	 	 	
              Title:
                Administrator

            
	 	 	 
	 	
              Dated:
                

            	 

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

    

    

    This
      Certificate represents Capital Securities referred to in the within-mentioned
      Declaration.

     

    
      	 	
              WILMINGTON
                TRUST COMPANY,

            
	 	
              not
                in its individual capacity but solely as the Institutional
                Trustee

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Authorized
                Officer

            
	 	 	 
	 	 	 
	 	
              Dated:
                

            

    

    

    
      
        
        

      

      
        A-1-5

        
          

        

      

      
        
        

      

    

    [FORM
      OF
      REVERSE OF SECURITY]

     

    Distributions
      payable on each Capital Security will be payable at a fixed rate of interest
      equal to 7.20% per annum (the “Coupon Rate”). Distributions in arrears for more
      than one Distribution Period will bear interest thereon, compounded quarterly,
      at the Coupon Rate (to the extent permitted by applicable law). The term
“Distributions”, as used herein, includes cash Distributions, any such
      compounded Distributions and any Additional Amounts payable on the Debentures,
      unless otherwise stated. A Distribution is payable only to the extent that
      payments are made in respect of the Debentures held by the Institutional Trustee
      and to the extent the Institutional Trustee has funds legally available in
      the
      Property Account therefor. The amount of Distributions payable for any
      Distribution Period will be computed on the basis of a 360-day year consisting
      of twelve 30-day months.

     

    Except
      as
      otherwise described below, Distributions on the Capital Securities will be
      cumulative, will accrue from the date of original issuance and will be payable
      quarterly in arrears on February 23, May 23, August 23, and November 23 of
      each
      year, commencing on February 23, 2006 (each, a “Distribution Payment Date”), and
      on any earlier date of redemption, subject, in each case, to the Business Day
      convention specified in the Declaration. The Debenture Issuer has the right
      under the Indenture to defer payments of interest on the Debentures by extending
      the interest payment period for up to 20 consecutive quarterly periods (each
      such extended interest payment period, together with all previous and future
      consecutive extensions thereof, is referred to herein as an “Extension Period”)
      at any time and from time to time on the Debentures, subject to the conditions
      described below and in the Declaration and the Indenture. No Extension Period
      may end on a date other than a Distribution Payment Date or extend beyond the
      Maturity Date, any Optional Redemption Date or the Special Redemption Date,
      as
      the case may be. During any Extension Period, interest will continue to accrue
      on the Debentures, and interest on such accrued interest (such accrued interest
      and interest thereon referred to herein as “Deferred Interest”) will accrue, at
      an annual rate equal to the Coupon Rate, compounded quarterly from the date
      such
      Deferred Interest would have been payable were it not for the Extension Period,
      to the extent permitted by applicable law. At the end of any Extension Period,
      the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid
      on
      the Debentures; provided,
      however,
      that
      prior to the termination of any Extension Period, the Debenture Issuer may
      further extend such Extension Period, provided,
      that no
      Extension Period (including all previous and further consecutive extensions
      that
      are part of such Extension Period) shall exceed 20 consecutive quarterly
      periods. Upon the termination of any Extension Period and upon the payment
      of
      all Deferred Interest, the Debenture Issuer may commence a new Extension Period,
      subject to the requirements set forth herein and in the Declaration and the
      Indenture. No interest or Deferred Interest (except any Additional Amounts
      that
      may be due and payable) shall be due and payable during an Extension Period,
      except at the end thereof, but Deferred Interest shall accrue upon each
      installment of interest that would otherwise have been due and payable during
      such Extension Period until such installment is paid.

     

    As
      a
      consequence of any Extension Period, Distributions will be deferred. If
      Distributions are deferred, the Distributions due shall be paid on the date
      that
      the related Extension Period terminates to Holders of the Capital Securities
      as
      they appear on the books and records of the Trust on the regular record date
      immediately preceding the Distribution Payment Date on which such Extension
      Period terminates to the extent that the Trust has funds legally available
      for
      the payment of such Distributions in the Property Account of the
      Trust.

     

    The
      Capital Securities shall be redeemable, and shall be entitled to the Liquidation
      Distribution, as provided in the Declaration.

     

    
      
        
        

      

      
        A-1-6

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

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

     

    _____________________________________

    _____________________________________

    _____________________________________

     

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

     

    
      _____________________________________

      _____________________________________

      _____________________________________

    

     

    (Insert
      address and zip code of assignee),

     

    and
      irrevocably appoints _______________________________ as agent to transfer the
      Capital Securities evidenced by this Capital Security Certificate on the books
      of the Trust. The agent may substitute another to act for it, him or
      her.

     

    Date:
      ______________________________________

     

    Signature:
      __________________________________

     

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

     

    Signature
      Guarantee: __________________________1 

     

    

     

    

     

    

      

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

    

    
      
        
        

      

      
        A-1-7

        
          

        

      

      
        
        

      

    

    Exhibit
      A-2

     

    Form
      of
      Common Security Certificate

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

     

    FORM
      OF
      COMMON SECURITY CERTIFICATE

     

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

     

    EXCEPT
      AS
      SET FORTH IN SECTION 8.1 (b) OF THE DECLARATION (AS DEFINED BELOW), THIS
      SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
      TRANSFERRED.

     

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    

      
        	
                Certificate
                  Number [_______]

                 

              	
                Number
                  of Common Securities 248

                 

              

      

    

    Certificate
      Evidencing Common Securities

     

    of

     

    BAY
      NATIONAL CAPITAL TRUST I

     

    Bay
      National Capital Trust I, a statutory trust created under the laws of the State
      of Delaware (the “Trust”), hereby certifies that Bay National Corporation is the
      registered owner (the “Holder”) of 248 common securities of the Trust
      representing undivided beneficial interests in the assets of the Trust
      (liquidation amount $1,000 per Common Security) (the “Common Securities”). The
      Common Securities represented hereby are issued pursuant to, and the
      designation, rights, privileges, restrictions, preferences and other terms
      and
      provisions of the Common Securities shall in all respects be subject to, the
      provisions of the Amended and Restated Declaration of Trust of the Trust, dated
      as of December 12, 2005, among Hugh W. Mohler, Mark A. Semanie and Warren F.
      Boutilier, as Administrators, Wilmington Trust Company, as Delaware Trustee,
      Wilmington Trust Company, as Institutional Trustee, the Holder, as Sponsor,
      and
      the holders from time to time of undivided beneficial interests in the assets
      of
      the Trust, including the designation of the terms of the Common Securities
      as
      set forth in Annex I to the Declaration, as the same may be amended from time
      to
      time (the “Declaration”). Capitalized terms used herein but not defined shall
      have the meaning given them in the Declaration. The Sponsor will provide a
      copy
      of the Declaration and the Indenture to the Holder without charge upon written
      request to the Sponsor at its principal place of business.

     

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

     

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

     

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

     

    This
      Certificate and the Common Securities evidenced hereby are governed by, and
      shall be construed in accordance with, the laws of the State of Delaware,
      without regard to principles of conflict of laws.

     

    
      
        
        

      

      
        A-2-2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Trust has executed this Certificate this ____ day of
      _________________, 2005.

     

    

     

    BAY
      NATIONAL CAPITAL TRUST I

     

    By:_______________________________________

    Name:

    Title:
      Administrator

    

    
      
        
        

      

      
        A-2-3

        
          

        

      

      
        
        

      

    

    [FORM
      OF
      REVERSE
      OF SECURITY]

    

    Distributions
      payable on each Common Security will be identical in amount to the Distributions
      on each Security, payable Capital which is at a fixed rate of interest equal
      to
      7.20% per annum (the “Coupon Rate”). Distributions in arrears for more than one
      Distribution Period will bear interest thereon, compounded
      quarterly,
      at the Coupon Rate (to the extent permitted by applicable law).
      The
      term
“Distributions”, as used herein, includes cash Distributions, any such
      compounded Distributions and any Additional Amounts payable on the Debentures,
      unless otherwise stated. A Distribution is payable only to the extent that
      payments are made in respect of the Debentures held by the Institutional Trustee
      and to the extent the Institutional Trustee has funds legally available in
      the
      Property Account therefor. The amount of Distributions payable for any
      Distribution Period will be computed on the basis of a 360-day year consisting
      of twelve May months.

    

    Except
      as
      otherwise described below, Distributions on the Common Securities will be
      cumulative, will accrue from the date of original issuance and will be payable
      quarterly in arrears on February 23, May 23, August 23 and November 23 of each
      year, commencing on February 23, 2006 (each, a “Distribution Payment Date”), and
      on any earlier date of redemption, subject, in each case, to the Business Day
      convention specified in the Declaration. The Debenture Issuer has the right
      under the Indenture to defer payments of interest on the Debentures by extending
      the interest payment period for up to 20 consecutive quarterly periods (each
      such extended interest payment period, together with all previous and future
      consecutive extensions thereof, is referred to herein as an “Extension Period”)
      at any time and from time to time on the Debentures, subject to the conditions
      described below and in the Declaration and the Indenture. No Extension Period
      may end on a date other than a Distribution Payment Date or extend beyond the
      Maturity Date, any Optional Redemption Date or the Special Redemption Date,
      as
      the case may be. During any Extension Period, interest will continue to accrue
      on the Debentures, and interest on such accrued interest (such accrued interest
      and interest thereon referred to herein as “Deferred Interest”) will accrue, at
      an annual rate equal to the Coupon Rate, compounded quarterly from the date
      such
      Deferred Interest would have been payable were it not for the Extension Period,
      to the extent permitted by applicable law. At the end of any Extension Period,
      the Debenture Issuer shall pay all Deferred Interest then accrued and unpaid
      on
      the Debentures; that prior to the termination of any Extension Period, the
      Debenture Issuer may further extend such Extension Period, provided, that no
      Extension Period (including all previous and further consecutive extensions
      that
      are part of such Extension Period) shall exceed 20 consecutive quarterly
      periods. Upon the termination of any Extension Period and upon the payment
      of
      all Deferred Interest, the Debenture Issuer may commence a new Extension Period,
      subject to the requirements set forth herein and in the Declaration and the
      Indenture. No interest or Deferred Interest (except any Additional Amounts
      that
      may be due and payable) shall be due and payable during an Extension Period,
      except at the end thereof, but Deferred Interest shall accrue upon each
      installment of interest that would otherwise have been due and payable during
      such Extension Period until such installment is paid.

    

    As
      a
      consequence of any Extension Period, Distributions will be deferred. If
      Distributions are deferred, the Distributions due shall be paid on the date
      that
      the related Extension Period terminates to Holders of the Securities as they
      appear on the books and records of the Trust on the regular record dote
      immediately preceding the Distribution Payment Date on which such Extension
      Period terminates to the extent that the Trust has funds legally available
      for
      the payment of such Distributions in the Property Account of the
      Trust.

    The
      Common Securities shall be redeemable, and shall be entitled to the Liquidation
      Distribution, as provided in the Declaration.

    
      
        
        

      

      
        A-2-4

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT

    

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

    

    
      _____________________________________

      _____________________________________

      _____________________________________

       

    

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

    

    
      _____________________________________

      _____________________________________

      _____________________________________

       

    

    (Insert
      address and zip code of assignee),

    

    and
      irrevocably appoints ______ as agent to transfer the Common Securities evidenced
      by this Common Security Certificate on the books of the trust. The agent may
      substitute another to act for him or her.

    

    Date:
      ___________________________________________________      

    

    Signature:
      _______________________________________________     

    

    

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

    

    Signature
      Guarantee:_______________________________________1 

    

    

    

    

      

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

      

    

    
      
        
        

      

      
        A-2-5

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Form
      of
      Administrator’s Certificate of the Trust

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    FORM
      OF
      ADMINISTRATOR’S CERTIFICATE

    OF
      THE
      TRUST

    

    Pursuant
      to Section 2.6(a)(i)(P) of the Amended and Restated Declaration of Trust, dated
      as of December 12, 2005 (as amended or supplemented from time to time, the
      “Trust Agreement”), off Bay National Capital Trust I (the “Trust”) among Bay
      National Corporation as Sponsor, Wilmington Trust Company, as Institutional
      Trustee, Wilmington Trust Company, as Delaware Trustee, the Administrators
      named
      therein, and the holders from time to time of beneficial interests in the assets
      of the Trust, the undersigned (on behalf of the Trust) hereby certifies that
      he/she is an Administrator of the Trust and that, to his/her knowledge under
      the
      terms of the Trust Agreement the Trust has complied (without regard to any
      period of grace or requirement of notice provided under the Trust Agreement)
      with all conditions and covenants under the Trust Agreement for the year
      20___.

    

    Capitalized
      terms used herein, and not otherwise defined herein, have respective meanings
      assigned thereto in the Trust Agreement.

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Administrator’s Certificate
      as of ___________, 20___.

    

    

      
        	 	 
	 	
                Name:

              
	 	
                Title:

              

      

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    Exhibit
      C

    

    Form
      of
      Transferee Certificate to be Executed by Accredited Investors

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    FORM
      OF
      TRANSFEREE CERTIFICATE

    TO
      BE
      EXECUTED BY ACCREDITED INVESTORS

    

    ________________,
      [ ]

    

    Bay
      National Corporation

    Bay
      National Capital Trust I

    2328
      West
      Joppa Road, Suite 325

    Baltimore,
      Maryland 21093

    

    

      
        	
                Re:

              	
                Purchase
                  of $[SPECIFY] liquidation amount of MMCapSsm

              
	 	
                (the
                  “Capital Securities”) of Way National Capital Trust I (the
                  “Trust”).

              

      

    Ladies
      and Gentlemen:

    

    In
      connection with our purchase of the Capital Securities, we confirm
      that:

    

    1. We
      understand that the Capital Securities of the Trust have not been registered
      under the Securities Act of 1933, as amended (the “Securities Act”), and may not
      be offered or sold except as permitted in the following sentence. We agree
      on
      our own behalf and on behalf of any investor account for which we are purchasing
      the Capital Securities that, if we decide to offer, sell or otherwise transfer
      any such Capital Securities prior to the date which is the leer of OD
      two
      years
      (or such shorter period of time as permitted by Rule 144(k) under the Securities
      Act) after the leer of (Y) be date of original issuance of the Capital
      Securities and (Z) the last date on which the Trust or any Affiliate (as defined
      in Rule 405 under the Securities Act) of the Trust was the holder of any such
      Capital Securities (or any predecessor thereto) and (ii) such later date, if
      any, as may be required by any subsequent change in applicable law (the “Resale
      Restriction Termination Date”), then such offer, sale or other transfer will be
      made only (a) to be Company or the Trust, (b) pursuant to Rule 144A under the
      Securities Act, to a person we, reasonably believe is a qualified institutional
      buyer under Rule 144A (a “QIB”), that purchases for its own account or for the
      account of a QIB and to whom notice is given that the transfer is being made
      in
      reliance on Rule 144A, Q) pursuant to an exemption from registration, to an
      “accredited investor” within the meaning of subparagraph (a) (1), (2), (3), (7)
      or (8) of Rule 501 under the Securities Act that is acquiring any such Capital
      Securities for its own account or account of such an accredited investor for
      investment purposes and not with a view to, or sale in connection with, any
      distribution thereof in violation of the Securities Act, (d) pursuant to offers
      and sales to a non-U.S. Person that occur outside the United States pursuant
      to
      Regulation S under the Securities Act, or (e) pursuant to another available
      exemption from the registration requirements of the Securities Act, and in
      each
      of the foregoing cases in accordance with any applicable state securities laws
      and any requirements of law that govern the disposition of our property. If
      any
      resale or other transfer of the Capital Securities is proposed to be made
      pursuant to clause (c) above, the transferor shall deliver a letter from the
      transferee substantially in the form of this letter to the Institutional Trustee
      as Transfer Agent, which shall provide as applicable, among other things, that
      the transferee is an accredited investor within the meaning of subparagraph
      (a)(1), (2), (3), (7) or (8) of Rule 501 under the Securities Act that is
      acquiring such Capital Securities for investment purposes and not for any
      distribution in violation of the Securities Act. We acknowledge on our behalf
      and on behalf of any investor account for which we are purchasing Capital
      Securities that the Company and the Trust reserve the right prior to any offer,
      sale or other transfer pursuant to clause (c) or (e) to require the delivery
      of
      any opinion of counsel, certifications and/or other information satisfactory
      to
      Bay National Corporation (the “Company”) and the Trust. We understand that the
      certificates for any Capital Securities that me receive prior to the Resale
      Restriction Termination Date will bear a legend substantially to the effect
      of
      the foregoing.

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    2. We
      are an
      accredited investor within the meaning of subparagraph {a) (1), (3), (7) or
      (8)
      of Fade 501 under the Securities Act purchasing for our own account or for
      the
      account of such an accredited investor, and we are acquiring the Capital
      Securities for investment purposes and not with view to, or for offer or sale
      in
      connection with, any distribution in violation of the Securities AM,
      and
      we
      have such knowledge and experience in financial and business matters as to
      be
      capable of evaluating the merits and risks of our investment in the Capital
      Securities, and we and any account for which we are acting are each able to
      bear
      the economic risks of our or its investment.

    

    3. We
      are
      acquiring the Capital Securities purchased by us for our own account (or for
      one
      or more accounts as to each of which we exercise sole investment discretion
      and
      have authority to make, and do make, the statements contained in this letter)
      and not with a view to any distribution of the Capital Securities in violation
      of the Securities Act, subject, nevertheless, to the understanding that the
      disposition of our property will at all times be and remain within our
      control.

    

    4. In
      the
      event that we purchase any Capital Securities, we will acquire such Capital
      Securities having an aggregate liquidation amount of not less than $100,000
      for
      our own account and for each separate account for which we are
      acting.

    

    5. We
      acknowledge that we either (A) are not a fiduciary of a pension, profit-sharing
      or other employee benefit plan or arrangement subject to the Employee Retirement
      Income Security Act of 1974, as amended, or to Section 4975 of the Internal
      Revenue Code of 1986, as amended (a “Plan”), or an entity whose assets include
“plan assets” by reason of any Plan’s investment in the entity and are not
      purchasing the Capital Securities on behalf of or with “plan assets” by reason
      of any POWs investment
      in the
      entity and are not purchasing the Capital Securities on behalf of or with “plan
      assets” of any Plan or (B) are eligible for the exemptive relief available under
      one or more of the following prohibited transaction class exemptions (“PTCEs”)
      issued by the U.S. Department of Labor: PTCE 96-23, 95-60, 91-38, 90-1 or
      84-14.

    

    6. We
      acknowledge that each Plan, by its purchase of the Capital Securities,
will
      be
      deemed
      to have directed the Trust to invest in the junior subordinated debt securities
      of the Company, and to have consented to the appointment of the institutional
      trustee of the Trust.

    

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

    7. We
      acknowledge that the Company, the Trust and others will rely upon the truth
      and
      accuracy of the foregoing acknowledgments, representations, warranties and
      agreements and agree that if any of our acknowledgments, representations,
      warranties and agreements
      are no longer accurate, we shall promptly notify the! applicable Purchaser.
      If
      we are acquiring any Capital Securities as a fiduciary or agent for one or
      more
      investor accounts, we represent that we have sole discretion with respect to
      each such investor account and that we have full power to make the foregoing
      acknowledgments, representations and agreements on behalf of each such investor
      account.

    

    You
      are
      entitled to rely upon this letter and are irrevocably authorized to produce
      this
      letter or a copy thereof to any interested party in any administrative or legal
      proceeding or other inquiry with respect to matters covered hereby.

    

    

      
        	 	 
	 	
                (Name
                  of Purchaser)

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	 
	 	 	 
	 	
                Date:
                  

              	 

      

       

    

    Upon
      transfer, the Capital Securities should be registered in the name of the new
      beneficial owner as follows:

    

    

    Name:
      ____________________________________________

    

    Address:
      __________________________________________

    

    Taxpayer
      ID Number: _________________________________

    

    

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    Exhibit
      D

    

    Form
      of
      Transferor Certificate to be Executed for QIBs

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    FORM
      OF
      TRANSFEROR CERTIFICATE

    TO
      BE
      EXECUTED FOR QIBs

    

    Bay
      National Corporation

    Bay
      National Capital Trust I

    2328
      West
      Joppa Road, Suite 325

    Baltimore,
      Maryland 21093

    

    

      
        	
                Re:

              	
                Purchase
                  of $[SPECIFY] liquidation amount of MMCapSsm

              
	 	
                (the
                  “Capital Securities”) of Way National Capital Trust I (the
                  “Trust”).

              

      

    Reference
      is hereby made to the Amended and Restated Declaration of Trust of Bay National
      Capital Trust I, dated as of December 12, 2005 (the “Declaration”), among Hugh
      W. Mohler, Mark A.
      Semanie and
      Warren F. Boutilier, as Administrators, Wilmington Trust Company, as Delaware
      Trustee, Wilmington Trust Company, as Institutional Trustee, Bay National
      Corporation, as Sponsor, and the holders from time to time of undivided
      beneficial interests in the assets of the Trust. Capitalized terms used but
      not
      defined herein shall have the meanings given them in the
      Declaration.

    

    This
      letter relates to $[_________________] aggregate liquidation amount of Capital
      Securities which are held in the name of [name of transferor] (the
“Transferor”).

    

    In
      accordance with Section 8.2(b) of the Declaration, the Transferor does hereby
      certify that such Capital Securities are being transferred in accordance with
      (i) the transfer restrictions set forth in the Capital Securities and (ii)
      Rule
      144A under the Securities Act (“Rule 144A”), to a transferee that the Transferor
      reasonably believes is purchasing the Capital Securities for its own account
      or
      an account with respect to which the transferee exercises sole investment
      discretion and the transferee and any such account is a “qualified institutional
      buyer” within the meaning of Rule 144A, in a transaction meeting the
      requirements of Rule 144A and in accordance with applicable securities laws
      of
      any state of the United States or any other jurisdiction.

    

    You
      are
      entitled to rely upon this letter and are irrevocably authorized to produce
      this
      letter or a copy thereof to any interested party in any administrative or legal
      proceeding or other inquiry with respect to matters covered hereby.

     

    

      
        	 	 
	 	
                (Name
                  of Transferor)

              
	 	 	 	 
	 	
                By:

              	 
	 	 	
                Name:
                  

              	 
	 	 	
                Title:
                  

              	 
	 	 	 	 
	 	 	
                Date:
                  

              	 

      

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    

    Exhibit
      E

    

    Form
      of
      Transferee Certificate to be Executed by Non-U.S. Persons

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    

    FORM
      OF
      TRANSFEREE CERTIFICATE

    TO
      BE
      EXECUTED BY NON-U.S. PERSONS

    

    FORM
      OF
      TRANSFEROR CERTIFICATE

    TO
      BE
      EXECUTED FOR QIBs

    

    Bay
      National Corporation

    Bay
      National Capital Trust I

    2328
      West
      Joppa Road, Suite 325

    Baltimore,
      Maryland 21093

    

    

      
        	
                Re:

              	
                Purchase
                  of $[SPECIFY] liquidation amount of MMCapSsm

              
	 	
                (the
                  “Capital Securities”) of Way National Capital Trust I (the
                  “Trust”).

              

      

    Reference
      is hereby made to the Amended and Restated Declaration of Trust of Bay National
      Capital Trust I, dated as of December 12, 2005 (the “Declaration”), among Hugh
      W. Mohler, Mark A.
      Semanie and
      Warren F. Boutilier, as Administrators, Wilmington Trust Company, as Delaware
      Trustee, Wilmington Trust Company, as Institutional Trustee, Bay National
      Corporation, as Sponsor, and the holders from time to time of undivided
      beneficial interests in the assets of the Trust. Capitalized terms used but
      not
      defined herein shall have the meanings given them in the
      Declaration.

    

    This
      letter relates to $[_________________] aggregate liquidation amount of Capital
      Securities which are held in the name of [name of transferor].

    

    In
      accordance with Section 8.2(b) of the Declaration, we do hereby certify that
      (i)
      we are not a “U.S. person” (as such term is defined in Rule 902 under the
      Securities Act), (ii) we are not acquiring the Capital Securities for the
      account or benefit of any U.S. person, and (iii) the offer and sale of Capital
      Securities to us constitutes an “offshore transaction” under Regulation S under
      the Securities Act.

    

    You
      are
      entitled to rely upon this letter and are irrevocably authorized to produce
      this
      letter or a copy thereof to any interested party in any administrative or legal
      proceeding or other inquiry with respect to matters covered hereby.

    

    ________________________________________

    (Name
      of
      Transferee)

    

    By:_____________________________________

    Name:
      _____________________________

    Title:
      ______________________________

    

    Date:
      ______________________________

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