Document:

debtofferingexhibit42

50011.0001-55071v12   FIRST NBC BANK HOLDING COMPANY   as Issuer,    and   U.S. BANK NATIONAL ASSOCIATION    as Trustee    INDENTURE    Dated as of February 18, 2015   5.75% Subordinated Notes due 2025     

 

   i   TABLE OF CONTENTS   ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE .......................... 1    Section 101  Definitions....................................................................................................... 1    Section 102  Compliance Certificates and Opinions. .......................................................... 8    Section 103  Form of Documents Delivered to Trustee. ..................................................... 9    Section 104  Acts of Holders. .............................................................................................. 9    Section 105  Required Notices or Demands. ..................................................................... 11    Section 106  Language of Notices. .................................................................................... 12    Section 107  Incorporation by Reference of Trust Indenture Act; Conflicts. .................... 12    Section 108  Effect of Headings and Table of Contents. ................................................... 13    Section 109  Successors and Assigns. ................................................................................ 13    Section 110  Severability. .................................................................................................. 13    Section 111  Benefits of Indenture..................................................................................... 13    Section 112  Governing Law. ............................................................................................ 14    Section 113  Legal Holidays. ............................................................................................. 14    Section 114  Counterparts; Electronic Transmission. ........................................................ 14    Section 115  Immunity of Certain Persons. ....................................................................... 14    Section 116  Waiver of Jury Trial. ..................................................................................... 14    Section 117  Force Majeure. .............................................................................................. 15    Section 118  USA Patriot Act. ........................................................................................... 15    Section 119  No Sinking Fund. .......................................................................................... 15    Section 120  Rules of Construction. .................................................................................. 15    ARTICLE II. THE SUBORDINATED NOTES ...................................................................... 16    Section 201  Forms Generally. ........................................................................................... 16    Section 202  Definitive Subordinated Notes. ..................................................................... 16    Section 203  Global Subordinated Notes. .......................................................................... 16    Section 204  Restricted Subordinated Notes. ..................................................................... 17    Section 205  Execution and Authentication. ...................................................................... 17    Section 206  Registrar and Paying Agent. ......................................................................... 18    Section 207  Registration of Transfer and Exchange. ........................................................ 18    Section 208  Exchange Offer. ............................................................................................ 22    Section 209  Mutilated, Destroyed, Lost and Stolen Subordinated Notes. ........................ 23    Section 210  Payment of Interest; Rights to Interest Preserved. ........................................ 23    Section 211  Persons Deemed Owners. ............................................................................. 25    Section 212  Cancellation. ................................................................................................. 25    Section 213  Computation of Interest. ............................................................................... 26    Section 214  CUSIP Numbers............................................................................................ 26    ARTICLE III. SATISFACTION AND DISCHARGE OF INDENTURE ............................ 26    Section 301  Satisfaction and Discharge. ........................................................................... 26    Section 302  Defeasance and Covenant Defeasance. ......................................................... 27    Section 303  Application of Trust Money.......................................................................... 29    Section 304  Reinstatement. ............................................................................................... 30    Section 305  Effect on Subordination Provisions. ............................................................. 30     

 

   ii   ARTICLE IV. REMEDIES........................................................................................................ 31    Section 401  Events of Default; Acceleration. ................................................................... 31    Section 402  Failure to Make Payments. ........................................................................... 32    Section 403  Trustee May File Proofs of Claim. ............................................................... 33    Section 404  Trustee May Enforce Claims Without Possession of Subordinated Notes. .. 34    Section 405  Application of Money Collected. .................................................................. 34    Section 406  Limitation on Suits. ....................................................................................... 34    Section 407  Unconditional Right of Holders to Payments. .............................................. 35    Section 408  Restoration of Rights and Remedies. ............................................................ 35    Section 409  Rights and Remedies Cumulative. ................................................................ 35    Section 410  Delay or Omission Not Waiver. .................................................................... 36    Section 411  Control by Holders. ....................................................................................... 36    Section 412  Waiver of Past Defaults. ............................................................................... 36    Section 413  Undertaking for Costs. .................................................................................. 36    ARTICLE V. THE TRUSTEE .................................................................................................. 37    Section 501  Duties of Trustee. .......................................................................................... 37    Section 502  Certain Rights of Trustee. ............................................................................. 38    Section 503  Notice of Defaults. ........................................................................................ 39    Section 504  Not Responsible for Recitals or Issuance of Subordinated Notes. ............... 39    Section 505  May Hold Subordinated Notes...................................................................... 40    Section 506  Money Held in Trust. .................................................................................... 40    Section 507  Compensation and Reimbursement. ............................................................. 40    Section 508  Corporate Trustee Required; Eligibility. ....................................................... 41    Section 509  Resignation and Removal; Appointment of Successor. ................................ 42    Section 510  Acceptance of Appointment by Successor. .................................................. 43    Section 511  Merger, Conversion, Consolidation or Succession to Business. .................. 44    Section 512  Appointment of Authenticating Agent.......................................................... 44    Section 513  Preferred Collection of Claims against Company. ....................................... 46    ARTICLE VI. HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY ...... 46    Section 601  Holder Lists. .................................................................................................. 46    Section 602  Preservation of Information; Communications to Holders. .......................... 46    Section 603  Reports by Trustee. ....................................................................................... 46    Section 604  Reports by Company..................................................................................... 47    ARTICLE VII. SUCCESSORS ................................................................................................. 48    Section 701  Merger, Consolidation or Sale of All or Substantially All Assets. ............... 48    Section 702  Successor Person Substituted for Company. ................................................ 49    ARTICLE VIII. SUPPLEMENTAL INDENTURES .............................................................. 49    Section 801  Supplemental Indentures without Consent of Holders. ................................ 49    Section 802  Supplemental Indentures with Consent of Holders. ..................................... 50    Section 803  Execution of Supplemental Indentures. ........................................................ 51    Section 804  Effect of Supplemental Indentures. ............................................................... 51    Section 805  Reference in Subordinated Notes to Supplemental Indentures. .................... 51    Section 806  Effect on Senior Indebtedness. ..................................................................... 51    Section 807  Conformity with Trust Indenture Act. .......................................................... 51     

 

   iii   ARTICLE IX. COVENANTS .................................................................................................... 52    Section 901  Payment of Principal and Interest. ................................................................ 52    Section 902  Maintenance of Office. ................................................................................. 52    Section 903  Money for Subordinated Notes Payments to Be Held in Trust. ................... 53    Section 904  Corporate Existence. ..................................................................................... 54    Section 905  Maintenance of Properties. ........................................................................... 54    Section 906  Waiver of Certain Covenants. ....................................................................... 54    Section 907  Company Statement as to Compliance. ........................................................ 55    ARTICLE X. REDEMPTION OF SECURITIES ................................................................... 55    Section 1001  Applicability of Article. ................................................................................ 55    Section 1002  Election to Redeem; Notice to Trustee. ........................................................ 55    Section 1003  Selection by Trustee of Subordinated Notes to be Redeemed. ..................... 56    Section 1004  Notice of Redemption. .................................................................................. 56    Section 1005  Deposit of Redemption Price. ....................................................................... 57    Section 1006  Subordinated Notes Payable on Redemption Date. ...................................... 57    Section 1007  Subordinated Notes Redeemed in Part. ........................................................ 58    ARTICLE XI. SUBORDINATION OF SECURITIES ........................................................... 58    Section 1101  Agreement to Subordinate. ........................................................................... 58    Section 1102  Distribution of Assets. .................................................................................. 58    Section 1103  Default With Respect to Senior Indebtedness. ............................................. 61    Section 1104  No Impairment. ............................................................................................. 61    Section 1105  Effectuation of Subordination Provisions. .................................................... 61    Section 1106  Notice to Trustee. .......................................................................................... 62    Section 1107  Trustee Knowledge of Senior Indebtedness. ................................................ 62    Section 1108  Senior Indebtedness to Trustee. .................................................................... 63    Section 1109  Subordination Not Applicable to Trustee Compensation. ............................ 63            

 

   iv   CROSS-REFERENCE TABLE   Trust Indenture Act Section       Indenture Section   §310 (a)(1)            508   (a)(2)          508           (a)(5)          508           (b)          509   §311 (a)          505           (b)          505           §312 (a)          601           (b)          602           (c)          602   §313 (a)          603           (b)(2)          603           (c)          603           (d)          603   §314 (a)          604   (a)(4)          907   (c)(1)          102   (c)(2)          102   (e)          102   §315 (a)          501, 502           (b)          503    (c)          501           (d)          501, 502   (e)          413   §316 (a) (last sentence)        101          (a)(1)(A)         402, 411          (a)(1)(B)           411, 412   (b)            407   (c)            104   §317 (a)(1)            402            (a)(2)            403            (b)           903   §318 (a)          107   (b)          107   (c)          107         Note: This Cross-Reference table will not, for any purpose, be deemed part of this Indenture.    

 

   1   This INDENTURE dated as of February 18, 2015 is between First NBC Bank Holding   Company, a Louisiana corporation (the “Company”), and U.S. Bank National Association, a   national banking association, as trustee (the “Trustee”).    RECITALS   WHEREAS, the Company has duly authorized the execution and delivery of this Indenture   to provide for an issue of $60.0 million in aggregate principal amount of 5.75% Subordinated   Notes due 2025, subject to the terms and conditions set forth in this Indenture.   NOW, THEREFORE, in order to declare the terms and conditions upon which the   Subordinated Notes are authenticated, issued and delivered, and in consideration of the premises,   and of the purchase and acceptance of the Subordinated Notes by the holders thereof, the Company   and the Trustee agree as follows for the benefit of each other and for the benefit of the respective   Holders from time to time of the Subordinated Notes.    ARTICLE I.   DEFINITIONS AND INCORPORATION BY REFERENCE    Section 101 Definitions.   Except as otherwise expressly provided in this Indenture or unless the context otherwise   requires, the terms defined in this Section for all purposes of this Indenture, any Company Order,   any Board Resolution, and any indenture supplemental hereto will have the respective meanings   specified in this Section.     “Act,” when used with respect to any Holders, is defined in Section 104.   “Additional Interest” has the meaning set forth in the Registration Rights Agreement.   “Affiliate” means, with respect to any specified Person, any other Person directly or   indirectly controlling or controlled by or under direct or indirect common control with such   specified Person.  For the purposes of this definition, “control,” when used with respect to any   specified Person means the power to direct the management and policies of such Person, directly   or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the   terms “controlling” and “controlled” have meanings correlative to the foregoing.   “Applicable Procedures” means, with respect to any transfer or exchange of or for   beneficial interests in any Global Subordinated Note, the rules and procedures of the Depositary   that apply to such transfer or exchange.   “Authenticating Agent” means any Person authorized by the Trustee in accordance with   Section 512 to act on behalf of the Trustee to authenticate Subordinated Notes.   “Authorized Newspaper” means a newspaper, in an official language of the place of   publication or in the English language, customarily published on each day that is a Business Day   in the place of publication, whether or not published on days that are not Business Days in the   place of publication, and of general circulation in each place in connection with which the term is     

 

   2   used or in the financial community of each such place.  Where successive publications are required   to be made in Authorized Newspapers, the successive publications may be made in the same or in   different newspapers in the same place meeting the foregoing requirements and in each case on   any day that is a Business Day in the place of publication.   “Authorized Officer” means each of the Chairman of the Board, the Chief Executive   Officer, the President, any Senior Executive Vice President and the Chief Financial Officer of the   Company.   “Bankruptcy Laws” mean Title 11, United States Code (11 U.S.C. §§101 et seq.) or any   similar federal or state law for the relief of debtors.   “Board of Directors” means, as to any Person, the board of directors, or similar governing   body, of such Person or any duly authorized committee thereof.   “Board Resolution” means one or more resolutions, 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, delivered to the Trustee.    “Business Day” means any day other than a Saturday, Sunday or other day on which   banking institutions in the City of Houston, Texas are authorized or obligated by law, regulation   or executive order to close.   “Commission” means the U.S. Securities and Exchange Commission, as from time to time   constituted, or, if at any time after the execution of this Indenture such Commission is not existing   and performing the duties now assigned to it under the Trust Indenture Act, then the body   performing such duties at such time.   “Common Stock” means any and all shares of the common stock, par value $1.00 per share,   of the Company, whether outstanding on the date of this Indenture or issued thereafter, and   includes, without limitation all series and classes of such common stock.   “Company” is defined in the preamble to this Indenture.   “Company Request” and “Company Order” mean, respectively, a written request or order,   as the case may be, signed on behalf of the Company by an Authorized Officer and delivered to   the Trustee.   “Corporate Trust Office” means the address of the Trustee specified in Section 105 or such   other address as the Trustee may designate from time to time by notice to the Holders and the   Company, or the designated address of any successor Trustee (or such other address as such   successor Trustee may designate from time to time by notice to the Holders and the Company).   “Covenant Defeasance” is defined in Section 302(3).   “Defaulted Interest” is defined in Section 210.     

 

   3   “Definitive Subordinated Notes” means, individually and collectively, each Restricted   Definitive Subordinated Note and each Unrestricted Definitive Subordinated Note, substantially   in the form of Exhibit A-1 hereto, issued under this Indenture.    “Depositary” means, with respect to any Subordinated Note issuable or issued in whole or   in part in global form, the Person designated as depositary by the Company in accordance with   this Indenture, and any and all successors thereto appointed as Depositary under this Indenture.   “Dollars” or “$” means a dollar or other equivalent unit of legal tender for payment of   public or private debts in the United States of America.   “Event of Default” is defined in Section 401.   “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor   statute thereto.   “Exchange Notes” means the Subordinated Notes issued in the Exchange Offer in   accordance with Section 208.   “Exchange Offer” has the meaning set forth in the Registration Rights Agreement.    “Exchange Offer Registration Statement” has the meaning set forth in the Registration   Rights Agreement.   “Federal Reserve Board” means the Board of Governors of the Federal Reserve System or   any successor regulatory authority with jurisdiction over bank holding companies.   “GAAP” means generally accepted accounting principles in the United States set forth in   the opinions and pronouncements of the Accounting Principles Board of the American Institute of   Certified Public Accountants, the statements and pronouncements of the Financial Accounting   Standards Board and such other statements by such other entities (including the Commission) as   have been accepted by a significant segment of the accounting profession, which are applicable at   the date of this Indenture.   “Global Subordinated Notes” means, individually and collectively, each Restricted Global   Subordinated Note and each Unrestricted Global Subordinated Note, substantially in the form of   Exhibit A-2 hereto, issued under this Indenture.   “Government Obligations” means securities which are direct obligations of the United   States of America in each case where the payment or payments thereunder are supported by the   full faith and credit of the United States of America.   “Holder” means the Person in whose name the Subordinated Note is registered in the   Subordinated Note Register.   “Indenture” means this Indenture, as amended and supplemented from time to time in   accordance with its terms.     

 

   4   “Initial Notes” means the $60,000,000 in aggregate principal amount of the Company’s   5.75% Subordinated Notes due 2025 issued under this Indenture on the date hereof.   “Interest Payment Date” means February 18 and August 18 of each year to Stated Maturity,   beginning August 18, 2015.   “Investment Company Event” means the receipt by the Company of a legal opinion from   counsel experienced in such matters to the effect that there is more than an insubstantial risk that   the Company is or, within 90 days of the date of such legal opinion will be, considered an   “investment company” that is required to be registered under the Investment Company Act of   1940, as amended.   “Legal Defeasance” is defined in Section 302(2).   “Letter of Transmittal” means the letter of transmittal to be prepared by the Company and   sent to all Holders for use by such Holders in connection with an Exchange Offer.    “Maturity” means the date on which the principal of a Subordinated Note or an installment   of principal becomes due and payable as provided in or under this Indenture or such Subordinated   Note, whether at the Stated Maturity or by an acceleration of the maturity of such Subordinated   Note in accordance with the terms of such Subordinated Note, upon redemption at the option of   the Company, upon repurchase or repayment or otherwise, and includes a Redemption Date for   such Subordinated Note and a date fixed for the repurchase or repayment of such Subordinated   Note at the option of the Holder.   “Officer” means, with respect to any Person, the chairman of the board, vice chairman of   the board, the chief executive officer, the president, the chief operating officer, the chief financial   officer, the treasurer, any assistant treasurer, the controller, the secretary or any Vice President of   such Person.   “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers   of the Company, one of whom must be the principal executive officer, the principal financial   officer or the principal accounting officer of the Company, that complies with the requirements of   Section 102 and is delivered to the Trustee.   “Opinion of Counsel” means a written opinion from legal counsel who is reasonably   acceptable to the Trustee, which opinion meets the requirements of Section 102.  The counsel may   be an employee of or counsel to the Company or any Subsidiary of the Company   “Outstanding,” when used with respect to any Subordinated Notes, means, as of the date   of determination, all such Subordinated Notes theretofore authenticated and delivered under this   Indenture, except (1) any such Subordinated Note theretofore cancelled by the Trustee or the   Registrar or delivered to the Trustee or the Registrar for cancellation;  (2) any such Subordinated   Note for whose payment at the Maturity thereof money in the necessary amount has been   theretofore deposited in accordance with this Indenture (other than in accordance with Section 302)   with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated   in trust by the Company (if the Company will act as its own Paying Agent) for the Holders of such   Subordinated Notes, provided that, if such Subordinated Notes are to be redeemed, notice of such     

 

   5   redemption has been duly given in accordance with this Indenture or provision therefor satisfactory   to the Trustee has been made;  (3) any such Subordinated Note with respect to which the Company   has effected Legal Defeasance or Covenant Defeasance in accordance with Section 302, except to   the extent provided in Section 302; and (4) any such Subordinated Note that has been paid in   accordance with Section 209 or in exchange for or in lieu of which other Subordinated Notes have   been authenticated and delivered under this Indenture, unless there will have been presented to the   Trustee proof satisfactory to the Trustee that such Subordinated Note is held by a bona fide   purchaser in whose hands such Subordinated Note is a valid obligation of the Company;  provided,   however, in all cases, that in determining whether the Holders of the requisite principal amount of   Outstanding Subordinated Notes have given any request, demand, authorization, direction, notice,   consent or waiver hereunder, Subordinated Notes owned by the Company or any Affiliate of the   Company will be disregarded and deemed not to be Outstanding, except that, in determining   whether the Trustee will be protected in making any such determination or relying upon any such   request, demand, authorization, direction, notice, consent or waiver, only Subordinated Notes that   a Responsible Officer of the Trustee actually knows to be so owned will be so disregarded.    Subordinated Notes so owned that will have been pledged in good faith may be regarded as   Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to   act with respect to such Subordinated Notes and that the pledgee is not the Company or an Affiliate   of the Company.   “Participating Broker-Dealer” has the meaning set forth in the Registration Rights   Agreement.   “Paying Agent” is defined in Section 206.   “Person” mean any individual, corporation, partnership, association, limited liability   company, other company, statutory trust, business trust, joint venture, joint-stock company, trust,   unincorporated organization or government or any agency or political subdivision thereof.   “Place of Payment,” with respect to any Subordinated Note, means the place or places   where the principal of, or interest on, such Subordinated Note are payable as provided in or under   this Indenture or such Subordinated Note.   “Private Placement Legend” means the legend set forth in Section 204 of this Indenture to   be placed on all Subordinated Notes issued under this Indenture, except where otherwise permitted   by the provisions of this Indenture.   “Redemption Date,” with respect to any Subordinated Note or portion thereof to be   redeemed, means the date fixed for such redemption by or under this Indenture or such   Subordinated Note.   “Redemption Price,” with respect to any Subordinated Note or portion thereof to be   redeemed, means the price at which it is to be redeemed as determined by or under this Indenture   or such Subordinated Note.   “Registrar” is defined in Section 206.     

 

   6   “Registration Rights Agreement” means the registration rights provisions contained in   Exhibit B to the Purchase Agreement with respect to the Subordinated Notes, dated as of the date   of this Indenture, by and between the Company and the purchasers of the Initial Notes.    “Regular Record Date,” with respect to any Interest Payment date, means the first calendar   day of the month in which the Interest Payment Date occurs, without regard to whether the Regular   Record Date is a Business Day.   “Responsible Officer” means, when used with respect to the Trustee, any officer within the   corporate trust department of the Trustee, including any vice president, assistant vice president,   assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who   customarily performs functions similar to those performed by the Persons who at the time will be   such officers, respectively, or to whom any corporate trust matter is referred because of such   Person’s knowledge of and familiarity with the particular subject and who will have direct   responsibility for the administration of this Indenture.   “Restricted Definitive Subordinated Note” means a Definitive Subordinated Note bearing,   or that is required to bear, the Private Placement Legend.   “Restricted Global Subordinated Note” means a Global Subordinated Note bearing, or that   is required to bear, the Private Placement Legend.   “Restricted Subordinated Note” means a Restricted Global Subordinated Note or a   Restricted Definitive Subordinated Note.   “Rule 144” means Rule 144 promulgated under the Securities Act.   “Rule 144A” means Rule 144A promulgated under the Securities Act.   “Securities Act” means the Securities Act of 1933, as amended, or any successor statute   thereto.   “Senior Indebtedness” means the principal of, and premium, if any, and interest, including   interest accruing after the commencement of any bankruptcy proceeding relating to the Company,   on, or substantially similar payments the Company makes in respect of the following categories of   debt, whether that debt was outstanding on the date of execution of this Indenture or thereafter   incurred, created or assumed:  (1) indebtedness of the Company evidenced by notes, debentures,   or bonds or other securities issued under the provisions of any indenture, fiscal agency agreement,   debenture or note purchase agreement or other agreement, including any senior debt securities that   may be offered;  (2) indebtedness of the Company for money borrowed or represented by purchase   money obligations, as defined below;  (3) the Company’s obligations as lessee under leases of   property whether made as part of a sale and leaseback transaction to which it is a party or   otherwise; (4) indebtedness, obligations and liabilities of others in respect of which the Company   is liable contingently or otherwise to pay or advance money or property or as guarantor, endorser   or otherwise or which it has agreed to purchase or otherwise acquire and indebtedness of   partnerships and joint ventures that is included in the Company’s consolidated financial   statements; (5) reimbursement and other obligations relating to letters of credit, bankers’   acceptances and similar obligations; (6) obligations under various hedging arrangements and     

 

   7   agreements, including interest rate and currency hedging agreements and swap and non-swap   forward agreements;  (7) all of the Company’s obligations issued or assumed as the deferred   purchase price of property or services, but excluding trade accounts payable and accrued liabilities   arising in the ordinary course of business; and (8) deferrals, renewals or extensions of any of the   indebtedness or obligations described in clauses (1) through (7) above.  However, clauses (1)   through (8) above exclude:  (x) any indebtedness, obligation or liability referred to in clauses (1)   through (8) above as to which, in the instrument creating or evidencing that indebtedness,   obligation or liability, it is expressly provided that the indebtedness, obligation or liability is not   senior in right of payment, is junior in right of payment to, or ranks equally in right of payment   with, other specified types of indebtedness, obligations and liabilities of the Company, which other   specified types of indebtedness, obligations and liabilities of the Company include the   Subordinated Notes; (y) any indebtedness, obligation or liability that is subordinated to   indebtedness, obligations or liabilities of the Company to substantially the same extent as or to a   greater extent than the Subordinated Notes are subordinated; and (z) the Subordinated Notes and,   unless expressly provided in the terms thereof, any indebtedness of the Company to its   Subsidiaries.   As used above, the term “purchase money obligations” means indebtedness, obligations   evidenced by a note, debenture, bond or other instrument, whether or not secured by a lien or other   security interest, issued to evidence the obligation to pay or a guarantee of the payment of, and any   deferred obligation for the payment of, the purchase price of property but excluding indebtedness   or obligations for which recourse is limited to the property purchased, issued or assumed as all or   a part of the consideration for the acquisition of property or services, whether by purchase, merger,   consolidation or otherwise, but does not include any trade accounts payable.   “Significant Subsidiary” means any Subsidiary of the Company that is a “significant   subsidiary” as defined in Rule 1-02 of Regulation S-X promulgated by the Commission (as such   rule is in effect on the date of this Indenture).   “Special Record Date” for the payment of any Defaulted Interest on any Subordinated Note   means a date fixed in accordance with Section 210.   “Stated Maturity” means February 18, 2025.   “Subordinated Note” or “Subordinated Notes” means the Initial Notes and the Exchange   Notes and, more particularly, any Subordinated Note authenticated and delivered under this   Indenture, including those Subordinated Notes issued or authenticated upon transfer, replacement   or exchange.   “Subordinated Note Register” is defined in Section 206.   “Subordination Provisions” means the provisions contained in Article XI or any provisions   with respect to subordination contained in the Subordinated Notes.   “Subsidiary” means a corporation, a partnership, business or statutory trust or a limited   liability company, a majority of the outstanding voting equity securities or a majority of the voting   membership or partnership interests, as the case may be, of which is owned or controlled, directly   or indirectly, by the Company or by one or more other Subsidiaries of the Company. For the     

 

   8   purposes of this definition, “voting equity securities” means securities having voting power for the   election of directors, managers, managing partners or trustees, as the case may be, whether at all   times or only so long as no senior class of stock has voting power by reason of any contingency.   “Tax Event” means the receipt by the Company of a legal opinion from counsel   experienced in such matters to the effect that there is more than an insubstantial risk that interest   paid by the Company on the Subordinated Notes is not, or, within 90 days of the date of such legal   opinion, will not be, deductible by the Company, in whole or in part, for United States federal   income tax purposes.   “Tier 2 Capital Event” means the receipt by the Company of a legal opinion from counsel   experienced in such matters to the effect that there is more than an insubstantial risk that the   Subordinated Notes do not constitute, or within 90 days of the date of such legal opinion will not   constitute, tier 2 capital (or its then equivalent if the Company were subject to such capital   requirement) for purposes of capital adequacy guidelines of the Federal Reserve Board, as then in   effect and applicable to the Company.   “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.   “Trustee” means U.S. Bank National Association, as trustee, until a successor replaces it   in accordance with the provisions of this Indenture and thereafter means the successor serving   hereunder.   “United States,” means the United States of America (including the states thereof and the   District of Columbia), its territories, its possessions and other areas subject to its jurisdiction; and   the term “United States of America” means the United States of America.   “Unrestricted Definitive Subordinated Note” means a Definitive Subordinated Note that   does not bear, and is not required to bear, the Private Placement Legend.   “Unrestricted Global Subordinated Note” means a Global Subordinated Note that does not   bear, and is not required to bear, the Private Placement Legend.   Section 102 Compliance Certificates and Opinions.     Except as otherwise expressly provided in or under this Indenture, upon any application or   request by the Company to the Trustee to take any action under any provision of this Indenture,   the Company will furnish to the Trustee an Officers’ Certificate in form and substance reasonably   satisfactory to the Trustee stating that, in the opinion of the signers, all conditions precedent   (including covenants compliance with which constitutes a condition precedent), if any, provided   for in this Indenture relating to the proposed action have been complied with and an Opinion of   Counsel in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of   such counsel, all such conditions precedent (including covenants compliance with which   constitutes a condition precedent), if any, have been complied with, except that in the case of any   such application or request as to which the furnishing of such documents or any of them is   specifically required by any provision of this Indenture relating to such particular application or   request, no additional certificate or opinion need be furnished.     

 

   9   Each certificate or opinion with respect to which compliance with a condition provided for   in this Indenture (other than an Officers’ Certificate provided under Section 907) must comply   with the provisions of Section 314(e) of the Trust Indenture Act and must include:    a statement that the person making such certificate or opinion has read such   covenant or condition;    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;    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 condition has been satisfied; and    a statement as to whether or not, in the opinion of such person, such   condition has been satisfied.   Section 103 Form of Documents Delivered to Trustee.     In any case where several matters are required to be certified by, or covered by an opinion   of, any specified Person, it is not necessary that all such matters be certified by, or covered by the   opinion of, only one such Person, or that they be so certified or covered by only one document,   but one such Person may certify or give an opinion with respect to some matters and one or more   other such Persons as to other matters, and any such Person may certify or give an opinion as to   such matters in one or several documents.   Any certificate or opinion of an officer of the Company may be based, insofar as it relates   to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer   knows, or in the exercise of reasonable care should know, that the certificate or opinion or   representations with respect to the matters upon which his certificate or opinion is based is   erroneous.  Any such certificate or opinion of counsel may be based, insofar as it relates to factual   matters, upon a certificate or opinion of, or representations by, an officer or officers of the   Company stating that the information with respect to such factual matters is in the possession of   the Company unless such counsel knows, or in the exercise of reasonable care should know, that   the certificate or opinion or representations with respect to such matters are erroneous.   Where any Person is required to make, give or execute two or more applications, requests,   consents, certificates, statements, opinions or other instruments under this Indenture or any   Subordinated Note, they may, but need not, be consolidated and form one instrument.   Section 104 Acts of Holders.    Any request, demand, authorization, direction, notice, consent, waiver or   other action provided by or under this Indenture to be made, given or taken by Holders may be   embodied in and evidenced by one or more instruments of substantially similar tenor signed by   such Holders in person or by an agent duly appointed in writing.  Except as herein otherwise   expressly provided, such action will become effective when such instrument or instruments or     

 

   10   record or both are delivered to the Trustee and, where it is hereby expressly required, to the   Company.  Such instrument or instruments and any such record (and the action embodied therein   and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such   instrument or instruments.  Proof of execution of any such instrument or of a writing appointing   any such agent, or of the holding by any Person of a Subordinated Note, will be sufficient for any   purpose of this Indenture and (subject to Section 501) conclusive in favor of the Trustee and the   Company and any agent of the Trustee or the Company, if made in the manner provided in this   Section.      The fact and date of the execution by any Person of any such instrument or   writing may be proved in any reasonable manner that the Trustee deems sufficient and in   accordance with such reasonable rules as the Trustee may determine, and the Trustee may in any   instance require further proof with respect to any of the matters referred to in this Section.    The ownership, principal amount and serial numbers of Subordinated Notes   held by any Person, and the date of the commencement and the date of the termination of holding   the same, will be proved by the Subordinated Note Register.    The Company may, in the circumstances permitted by the Trust Indenture   Act, set a record date for purposes of determining the identity of Holders entitled to give any   request, demand, authorization, direction, notice, consent, waiver or take any other act authorized   or permitted to be given or taken by Holders. Unless otherwise specified, if not set by the Company   prior to the first solicitation of a Holder made by any Person in respect of any such action, any   such record date will be the later of 30 days prior to the first solicitation of such consent or the date   of the most recent list of Holders furnished to the Trustee prior to such solicitation.  If a record   date is fixed, the Holders on such record date, and only such Persons, will be entitled to make, give   or take such request, demand, authorization, direction, notice, consent, waiver or other action,   whether or not such Holders remain Holders after such record date.  No such request, demand,   authorization, direction, notice, consent, waiver or other action will be valid or effective if made,   given or taken more than 90 days after such record date.    Any effective request, demand, authorization, direction, notice, consent,   waiver or other Act by the Holder of any Subordinated Note will bind every future Holder of the   same Subordinated Note and the Holder of every Subordinated Note issued upon the registration   of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done or suffered   to be done by the Trustee, any Registrar, any Paying Agent or the Company in reliance thereon,   whether or not notation of such Act is made upon such Subordinated Note.    Without limiting the foregoing, a Holder entitled to take any action   hereunder with regard to any particular Note may do so with regard to all or any part of the   principal amount of such Note or by one or more duly appointed agents, each of which may do so   in accordance with such appointment with regard to all or any part of such principal amount. Any   notice given or action taken by a Holder or its agents with regard to different parts of such principal   amount in accordance with this paragraph will have the same effect as if given or taken by separate   Holders of each such different part.     

 

   11    Without limiting the generality of this Section 104, a Holder, including a   Depositary that is a Holder of a Global Subordinated Note, may make, give or take, by a proxy or   proxies, duly appointed in writing, any request, demand, authorization, direction, notice, consent,   waiver or other Act provided in or under this Indenture or the Subordinated Notes to be made,   given or taken by Holders, and a Depositary that is a Holder of a Global Subordinated Note may   provide its proxy or proxies to the beneficial owners of interests in any such Global Subordinated   Note through such Depositary’s Applicable Procedures.  The Company may fix a record date for   the purpose of determining the Persons who are beneficial owners of interests in any Global   Subordinated Note entitled under the Applicable Procedures of such Depositary to make, give or   take, by a proxy or proxies duly appointed in writing, any request, demand, authorization,   direction, notice, consent, waiver or other action provided in this Indenture to be made, given or   taken by Holders. If such a record date is fixed, the Holders on such record date or their duly   appointed proxy or proxies, and only such Persons, will be entitled to make, give or take such   request, demand, authorization, direction, notice, consent, waiver or other action, whether or not   such Holders remain Holders after such record date. No such request, demand, authorization,   direction, notice, consent, waiver or other action will be valid or effective if made, given or taken   more than 90 days after such record date.   Promptly upon any record date being set in accordance with this Section 104, the Company,   at its own expense, will cause notice of the record date, the proposed action by Holders and the   expiration date to be given to the Trustee in writing and the Holders in the manner set forth in   Section 105.   Section 105 Required Notices or Demands.     Any notice or communication by the Company or the Trustee to the others is duly given if   in writing and delivered in Person or mailed by registered or certified mail (return receipt   requested), facsimile or overnight air courier guaranteeing next day delivery, to the other’s address:    If to the Company:   First NBC Bank Holding Company   210 Baronne Street   New Orleans, LA  70112   Attention:  William M. Roohi   Facsimile:  (504) 671-3484            If to the Trustee:   U.S. Bank National Association, as Trustee   5555 San Felipe, Suite 1150   Houston, Texas  77056   Attention:  Corporate Trust Services   Facsimile:  (713) 235-9213      The Company or the Trustee by notice to the other may designate additional or different   addresses for subsequent notices or communications.      

 

   12   All notices and communications will be deemed to have been duly given: at the time   delivered by hand, if personally delivered; five Business Days after being deposited in the mail,   postage prepaid, if mailed; on the first Business Day after being sent, if sent by facsimile and the   sender receives confirmation of successful transmission; and the next Business Day after timely   delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.    Any notice required or permitted to be given to a Holder under the provisions of this   Indenture will be deemed to be properly mailed by being deposited postage prepaid in a post office   letter box in the United States addressed to such Holder at the address of such Holder as shown on   the Subordinated Note Register.  Any report in accordance with Section 313 of the Trust Indenture   Act will be transmitted in compliance with subsection (c) therein. If the Company mails a notice   or communication to Holders, the Company will mail a copy to the Trustee at the same time.   In any case where notice to Holders of Subordinated Notes is given by mail, neither the   failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder of a   Subordinated Note will affect the sufficiency of such notice with respect to other Holders of   Subordinated Notes.  Any notice that is mailed in the manner herein provided will be conclusively   presumed to have been duly given or provided.  In the case by reason of the suspension of regular   mail service or by reason of any other cause it will be impracticable to give such notice by mail,   then such notification as will be made with the approval of the Trustee will constitute a sufficient   notification for every purpose hereunder.   Where this Indenture provides for notice in any manner, such notice may be waived in   writing by the Person entitled to receive such notice, either before or after the event, and such   waiver will be the equivalent of such notice.  Waivers of notice by Holders of Subordinated Notes   will be filed with the Trustee, but such filing will not be a condition precedent to the validity of   any action taken in reliance upon such waiver.   Notwithstanding any other provision herein, where this Indenture provides for notice to   any Holder of a Global Subordinated Note, or of an interest therein, such notice will be sufficiently   given if given to the Depositary for such Global Subordinated Note (or its designee) according to   the applicable procedures of such Depositary prescribed for giving such notice.   Section 106 Language of Notices.     Any request, demand, authorization, direction, notice, consent or waiver or other Act   required or permitted under this Indenture will be in the English language, except that, if the   Company so elects, any published notice may be in an official language of the country of   publication.   Section 107 Incorporation by Reference of Trust Indenture Act; Conflicts.     Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is   incorporated by reference in and made a part of this Indenture.  The following Trust Indenture Act   terms used in this Indenture have the following meanings:   “indenture securities” means the Subordinated Notes;     

 

   13   “indenture security holder” means a Holder;   “indenture to be qualified” means this Indenture;   “indenture trustee” or “institutional trustee” means the Trustee; and   “obligor” on the Subordinated Notes means the Company and any successor obligor upon   the Subordinated Notes.   All other terms used in this Indenture that are defined by the Trust Indenture Act, defined   by Trust Indenture Act reference to another statute or defined by Commission rule under the Trust   Indenture Act have the meanings so assigned to them as of the date of this Indenture.  If and to the   extent that any provision of this Indenture limits, qualifies or conflicts with another provision   included in this Indenture that is required to be included in this Indenture by any of Sections 310   to 317, inclusive, of the Trust Indenture Act, such required provision will control.  If any provision   of this Indenture limits, qualifies or conflicts with the duties imposed by Section 318(c) of the   Trust Indenture Act, the duties imposed by Section 318(c) of the Trust Indenture Act will control.    If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act   that may be so modified or excluded, the provisions of the Trust Indenture Act will be deemed to   apply to this Indenture as so modified or will be excluded, as the case may be.   Section 108 Effect of Headings and Table of Contents.     The Article and Section headings in this Indenture and the Table of Contents are for   convenience only and will not affect the construction of this Indenture.    Section 109 Successors and Assigns.     All the covenants, stipulations, promises and agreements in this Indenture contained by or   in behalf of the Company or the Trustee will bind its respective successors and permitted assigns,   whether so expressed or not.   Section 110 Severability.     In case any provision in this Indenture or any Subordinated Note will be invalid, illegal or   unenforceable, the validity, legality and enforceability of the remaining provisions will not, to the   fullest extent permitted by law, in any way be affected or impaired thereby.     Section 111 Benefits of Indenture.     Nothing in this Indenture or any Subordinated Note, express or implied, will give to any   Person, other than the parties hereto, any Registrar, any Paying Agent and their respective   successors hereunder and the Holders of Subordinated Notes, and the holders of Senior   Indebtedness, any benefit or any legal or equitable right, remedy or claim under this Indenture.      

 

   14   Section 112 Governing Law.     This Indenture and the Subordinated Notes will be governed by and construed in   accordance with the laws of the State of Texas applicable to agreements made or instruments   entered into and, in each case, performed in said State (without reference to principles of conflicts   of law).   Section 113 Legal Holidays.     Unless otherwise specified in or under this Indenture or any Subordinated Notes, in any   case where any Interest Payment Date, Stated Maturity or Maturity of, or any other day on which   a payment is due with respect to, any Subordinated Note will be a day that is not a Business Day   at any Place of Payment, then (notwithstanding any other provision of this Indenture or any   Subordinated Note other than a provision in any Subordinated Note or in the Board Resolution,   Officers’ Certificate or supplemental indenture establishing the terms of any Subordinated Note   that specifically states that such provision will apply in lieu hereof) payment need not be made at   such Place of Payment on such date, but such payment may be made on the next succeeding day   that is a Business Day at such Place of Payment with the same force and effect as if made on the   Interest Payment Date, at the Stated Maturity or Maturity or on any such other payment date, as   the case may be, and no interest will accrue on the amount payable on such date or at such time   for the period from and after such Interest Payment Date, Stated Maturity, Maturity or other   payment date, as the case may be, to the next succeeding Business Day.   Section 114 Counterparts; Electronic Transmission.     This Indenture may be executed in several counterparts, each of which will be an original   and all of which will constitute but one and the same instrument.  Any facsimile or electronically   transmitted copies hereof or signature hereon will, for all purposes, be deemed originals.     Section 115 Immunity of Certain Persons.     No recourse under or upon any obligation, covenant or agreement contained in this   Indenture, or in any Subordinated Note, or because of any indebtedness evidenced thereby, will be   had against any past, present or future shareholder, employee, officer or director, as such, of the   Company or of any predecessor or successor, either directly or through the Company or any   predecessor or successor, under any rule of law, statute or constitutional provision or by the   enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such   liability being expressly waived and released by the acceptance of the Subordinated Notes by the   Holders and as part of the consideration for the issue of the Subordinated Notes.     Section 116 Waiver of Jury Trial.     EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT   PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY   LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO   THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED   HEREBY.     

 

   15   Section 117 Force Majeure.     In no event will the Trustee be responsible or liable for any failure or delay in the   performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces   beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or   terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and   interruptions, loss or malfunctions of utilities, communications or computer (software and   hardware) services; it being understood that the Trustee will use reasonable efforts that are   consistent with accepted practices in the banking industry to resume performance as soon as   practicable under the circumstances.    Section 118 USA Patriot Act.     The Trustee hereby notifies the Company that in accordance with the requirements of the   USA Patriot Act, it is required to obtain, verify and record information that identifies the Company,   which information includes the name and address of the Company and other information that will   allow the Trustee to identify the Company in accordance with the USA Patriot Act.   Section 119 No Sinking Fund.     The Subordinated Notes are not entitled to the benefit of any sinking fund.   Section 120 Rules of Construction.     Unless the context otherwise requires:     a term has the meaning assigned to it;    an accounting term not otherwise defined has the meaning assigned to it in   accordance with GAAP;    “or” is not exclusive;    words in the singular include the plural, and in the plural include the   singular;    “including” means including without limitation;    “will” will be interpreted to express a command;    provisions apply to successive events and transactions;    references to sections of, or rules under, the Securities Act will be deemed   to include substitute, replacement or successor sections or rules adopted by the Commission from   time to time;    unless the context otherwise requires, any reference to an “Article,”   “Section” or “clause” refers to an Article, Section or clause, as the case may be, of this Indenture;   and     

 

   16    the words “herein,” “hereof” and “hereunder” and other words of similar   import refer to this Indenture as a whole and not any particular Article, Section, clause or other   subdivision.   ARTICLE II.   THE SUBORDINATED NOTES   Section 201 Forms Generally.   The Subordinated Notes and the Trustee’s certificate of authentication will be substantially   in the form of Exhibit A-1 and Exhibit A-2, as applicable, which are a part of this Indenture. The   Subordinated Notes may have notations, legends or endorsements required by law, stock exchange   rule or usage (provided that any such notation, legend or endorsement is in a form acceptable to   the Company).  The Company will provide any such notations, legends or endorsements to the   Trustee in writing.  Each Subordinated Note will be dated the date of its authentication. The terms   and provisions contained in the Subordinated Notes will constitute, and are hereby expressly made,   a part of this Indenture and the Company and the Trustee, by their execution and delivery of this   Indenture, agree to such terms and provisions and to be bound thereby.  However, to the extent   any provision of any Subordinated Note irreconcilably conflicts with the express provisions of this   Indenture, the provisions of this Indenture will govern and be controlling.    Section 202 Definitive Subordinated Notes.     The Initial Notes will be issued initially in the form of one or more Definitive Subordinated   Notes.  The Exchange Notes will also be issued initially in the form of one or more Definitive   Subordinated Notes, unless, before the issuance of such Exchange Notes, the Company has   determined that the Subordinated Notes may be represented by Global Subordinated Notes and   has so notified the Trustee, in which event the Exchange Notes will be issued in the form of one   or more Global Subordinated Notes.  Except as provided in Section 207, Holders of Definitive   Subordinated Notes will not be entitled to transfer Definitive Subordinated Notes in exchange for   beneficial interests in Global Subordinated Notes, and owners of beneficial interests in Global   Subordinated Notes will not be entitled to receive physical delivery of Definitive Subordinated   Notes.   Section 203 Global Subordinated Notes.   Each Global Subordinated Note issued under this Indenture will be deposited with the   Trustee at its Corporate Trust Office, as custodian for the Depositary, and registered in the name   of the Depositary or the nominee thereof, duly executed by the Company and authenticated by the   Trustee as hereinafter provided. The aggregate principal amount of any Global Subordinated Note   may from time to time be increased or decreased by adjustments made on the records of the Trustee   and the Depositary as hereinafter provided.  Any adjustment of the aggregate principal amount of   a Global Subordinated Note to reflect the amount of any increase or decrease in the amount of   outstanding Subordinated Notes represented thereby will be made by the Trustee in accordance   with instructions given by the Holder thereof as required by Section 207 hereof and will be made   on the records of the Trustee and the Depositary.     

 

   17   Section 204 Restricted Subordinated Notes.    Each Definitive Restricted Note and Global Restricted Note will bear a legend in   substantially the following form:    “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN   REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”)   OR UNDER ANY APPLICABLE STATE SECURITIES LAW.  THESE SECURITIES   MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN   THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE   SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION   FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION   REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH   APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY   A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE   COMPANY, IF REQUESTED, OR (II) UNLESS SOLD IN ACCORDANCE WITH RULE   144 UNDER SAID ACT.”   The restrictive legend set forth above will be removed and a new Subordinated Note of like   tenor and principal amount without such restrictive legend will be executed by the Company, and   upon written request of the Company (together with an Officers’ Certificate and an Opinion of   Counsel) given at least three Business Days prior to the proposed authentication date, the Trustee   will authenticate and deliver such new Subordinated Note to the respective Holder, if legal counsel   to the Holder or owner of beneficial interests requesting the removal of such legend deliver to the   Trustee, any Registrar and Paying Agent (if a different Person than the Trustee) and the Company   an opinion of counsel in compliance with this Indenture and additionally opining that the   Subordinated Note is eligible for immediate resale, without any remaining holding period, under   Rule 144 without the requirement for the Company to be in compliance with the current public   information required under Rule 144 as to such securities.   Section 205 Execution and Authentication.   Subordinated Notes will be executed on behalf of the Company by any Authorized Officer   and may (but need not) have the Company’s corporate seal or a facsimile thereof reproduced   thereon.  The signature of an Authorized Officer on the Subordinated Notes may be manual or   facsimile.  Subordinated Notes bearing the manual or facsimile signatures of individuals who were   at the time of execution Authorized Officers of the Company will, to the fullest extent permitted   by law, bind the Company, notwithstanding that such individuals or any of them have ceased to   hold such offices prior to the authentication and delivery of such Subordinated Notes or did not   hold such offices at the date of such Subordinated Notes.   The Trustee or an Authenticating Agent will authenticate and deliver the Initial Notes for   original issue in an aggregate principal amount of up to $60,000,000 upon one or more Company   Orders and an Opinion of Counsel.  In addition, the Trustee or an Authenticating Agent will upon   receipt of a Company Order authenticate and deliver any Exchange Notes for an aggregate   principal amount not to exceed $60,000,000 specified in such Company Order for Exchange Notes   issued hereunder. The aggregate principal amount of Outstanding Subordinated Notes at any time     

 

   18   may not exceed the amount set forth in the foregoing sentence, except as provided in Section 209.    The Subordinated Notes will be issued only in registered form without coupons and in minimum   denominations of $1,000 and any integral multiple of $1,000 in excess thereof.   The Trustee will not be required to authenticate any Subordinated Notes if the issue of such   Subordinated Notes under this Indenture will affect the Trustee’s own rights, duties or immunities   under the Subordinated Notes and this Indenture or otherwise in a manner that is not reasonably   acceptable to the Trustee or if the Trustee, being advised by counsel, determines that such action   may not lawfully be taken.   No Subordinated Note will be entitled to any benefit under this Indenture or be valid or   obligatory for any purpose, unless there appears on such Subordinated Note a certificate of   authentication substantially in the form provided for herein executed by or on behalf of the Trustee   or by the Authenticating Agent by the manual signature of one of its authorized signatories.  Such   certificate upon any Subordinated Note will be conclusive evidence, and the only evidence, that   such Subordinated Note has been duly authenticated and delivered hereunder.   Section 206 Registrar and Paying Agent.   The Company will maintain an office or agency where Subordinated Notes may be   presented for registration of transfer or for exchange (“Registrar”) and an office or agency where   Subordinated Notes may be presented for payment (“Paying Agent”).  The Registrar will keep a   register of the Subordinated Notes (“Subordinated Note Register”) and of their transfer and   exchange. The registered Holder of a Subordinated Note will be treated as the owner of the   Subordinated Note for all purposes. The Company may appoint one or more co-registrars and one   or more additional paying agents. The term “Registrar” includes any co-registrar and the term   “Paying Agent” includes any additional paying agent. The Company may change any Paying   Agent or Registrar without prior notice to any Holder; provided that no such removal or   replacement will be effective until a successor Paying Agent or Registrar will have been appointed   by the Company and will have accepted such appointment.  The Company will notify the Trustee   in writing of the name and address of any Registrar or Paying Agent not a party to this Indenture.    If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee   will act as such.  The Company or any of its Subsidiaries may act as Paying Agent or Registrar.     The Company initially appoints the Trustee to act as the Paying Agent and Registrar for   the Subordinated Notes and, in the event that any Subordinated Notes are issued in global form, to   initially act as custodian with respect to the Global Subordinated Notes.  In the event that the   Trustee will not be or will cease to be Registrar with respect the Subordinated Notes, it will have   the right to examine the Subordinated Note Register at all reasonable times.  There will be only   one Subordinated Note Register.   Section 207 Registration of Transfer and Exchange.      Except as otherwise provided in or under this Indenture, upon surrender for   registration of transfer of any Subordinated Note, the Company will execute, and the Trustee will   authenticate and deliver, in the name of the designated transferee or transferees, one or more new   Subordinated Notes denominated as authorized in or under this Indenture, of a like aggregate     

 

   19   principal amount bearing a number not contemporaneously outstanding and containing identical   terms and provisions.   Except as otherwise provided in or under this Indenture, at the option of the Holder,   Subordinated Notes may be exchanged for other Subordinated Notes containing identical terms   and provisions, in any authorized denominations (minimum denominations of $1,000 and any   integral multiple of $1,000 in excess thereof), and of a like aggregate principal amount, upon   surrender of the Subordinated Notes to be exchanged at any office or agency for such purpose.    Whenever any Subordinated Notes are so surrendered for exchange, the Company will execute,   and the Trustee will authenticate and deliver, the Subordinated Notes that the Holder making the   exchange is entitled to receive.   All Subordinated Notes issued upon any registration of transfer or exchange of   Subordinated Notes will be the valid obligations of the Company evidencing the same debt and   entitling the Holders thereof to the same benefits under this Indenture as the Subordinated Notes   surrendered upon such registration of transfer or exchange.   Every Subordinated Note presented or surrendered for registration of transfer or for   exchange or redemption will (if so required by the Company or the Registrar for such Subordinated   Note) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory   to the Company and the Registrar for such Subordinated Note duly executed by the Holder thereof   or his attorney duly authorized in writing.   No service charge will be made for any registration of transfer or exchange of Subordinated   Notes, or any redemption or repayment of Subordinated Notes, or any conversion or exchange of   Subordinated Notes for other types of securities or property, but the Company may require   payment of a sum sufficient to pay all taxes, assessments or other governmental charges that may   be imposed in connection with the transfer or exchange of the Subordinated Notes from the Holder   requesting such transfer or exchange.   Except as otherwise provided in or under this Indenture, the Company will not be required   (i) to issue, register the transfer of or exchange any Subordinated Notes during a period beginning   at the opening of business 15 days before the day of the selection for redemption of Subordinated   Notes under Section 1003 and ending at the close of business on the day of such selection, or (ii) to   register the transfer of or exchange any Subordinated Note, or portion thereof, so selected for   redemption, except in the case of any Subordinated Note to be redeemed in part, the portion thereof   not to be redeemed.   Any Registrar appointed in accordance with Section 206 hereof will provide to the Trustee   such information as the Trustee may reasonably require in connection with the delivery by such   Registrar of Subordinated Notes upon transfer or exchange of Subordinated Notes.  No Registrar   will be required to make registrations of transfer or exchange of Subordinated Notes during any   periods designated in the Subordinated Notes or in this Indenture as periods during which such   registration of transfers and exchanges need not be made.   The Trustee will have no obligation or duty to monitor, determine or inquire as to   compliance with any restrictions on transfer imposed under this Indenture or under applicable law     

 

   20   with respect to any transfer of any interest in any Subordinated Note (including any transfers   between or among Depositary participants or beneficial owners of interests in any Global   Subordinated Note) other than to require delivery of such certificates and other documentation or   evidence as are expressly required by, and to do so if and when expressly required by the terms of,   this Indenture, and to examine the same to determine substantial compliance as to form with the   express requirements hereof.   Neither the Trustee nor any Paying Agent will have any responsibility for any actions taken   or not taken by the Depositary.    When Definitive Subordinated Notes are presented by a Holder to the   Registrar with a request to register the transfer of such Definitive Subordinated Notes or to   exchange such Definitive Subordinated Notes for an equal principal amount of Definitive   Subordinated Notes of other authorized denominations, the Registrar will register the transfer or   make the exchange as requested if its reasonable requirements for such transaction are met;   provided, however, that the Definitive Subordinated Notes surrendered for transfer or exchange   will be duly endorsed or accompanied by a written instrument of transfer in form reasonably   satisfactory to the Company and the Registrar, duly executed by the Holder thereof or such   Holder’s attorney duly authorized in writing.    A Global Subordinated Note may not be transferred except by the   Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to   another nominee of the Depositary, or by the Depositary or any such nominee to a successor   Depositary or a nominee of such successor Depositary.  All Global Subordinated Notes will be   exchanged by the Company for Definitive Subordinated Notes if: (i) the Depositary has notified   the Company that it is unwilling or unable to continue as Depositary for such Global Subordinated   Note or such Depositary has ceased to be a “clearing agency” registered under the Exchange Act,   and a successor depositary is not appointed by the Company within 90 days, (ii)  the Company   determines that the Subordinated Notes are no longer to be represented by Global Subordinated   Notes and so notifies the Trustee, or (iii) an Event of Default has occurred and is continuing with   respect to the Subordinated Notes and the Depositary or its participant(s) has requested the   issuance of Definitive Subordinated Notes.   Any Global Subordinated Note exchanged in accordance with clause (i) or (ii) above will   be so exchanged in whole and not in part, and any Global Subordinated Note exchanged in   accordance with clause (iii) above may be exchanged in whole or from time to time in part as   directed by the Depositary.   Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive   Subordinated Notes will be issued in fully registered form, without interest coupons, will have an   aggregate Principal Amount equal to that of the Global Subordinated Note or portion thereof to be   so exchanged, will be registered in such names and be in such authorized denominations as the   Depositary will instruct the Trustee in writing and will bear such legends as provided herein.   Global Subordinated Notes also may be exchanged or replaced, in whole or in part, as provided in   Section 209 hereof.  Every Subordinated Note authenticated and delivered in exchange for, or in   lieu of, a Global Subordinated Note or any portion thereof, in accordance with this Section 207 or   Section 209 hereof, will be authenticated and delivered in the form of, and will be, a Global     

 

   21   Subordinated Note, except as otherwise provided herein.  A Global Subordinated Note may not be   exchanged for another Subordinated Note other than as provided in this Section 207(3); however,   beneficial interests in a Global Subordinated Note may be transferred and exchanged as provided   in Section 207(4) hereof.   Any Global Subordinated Note to be exchanged in whole will be surrendered by the   Depositary to the Trustee, as Registrar. With regard to any Global Subordinated Note to be   exchanged in part, either such Global Subordinated Note will be so surrendered for exchange or,   if the Trustee is acting as custodian for the Depositary or its nominee with respect to such Global   Subordinated Note, the principal amount thereof will be reduced, by an amount equal to the portion   thereof to be so exchanged, by means of an appropriate adjustment made on the records of the   Trustee.  Upon any such surrender or adjustment, the Trustee will authenticate and deliver the   Subordinated Note issuable on such exchange to or upon the order of the Depositary or an   authorized representative thereof.    The transfer and exchange of beneficial interests in the Global Subordinated   Notes will be effected through the Depositary in accordance with the Applicable Procedures and   this Section 207.    A Definitive Subordinated Note may not be exchanged for a beneficial   interest in a Global Subordinated Note unless the Company determines that the Subordinated Notes   may be represented by Global Subordinated Notes and so notifies the Trustee.  After the Company   has determined that the Subordinated Notes may be represented by Global Subordinated Notes and   so notifies the Trustee, then upon receipt by the Trustee of a Definitive Subordinated Note, duly   endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the   Trustee, together with written instructions from such Holder directing the Trustee to make, or to   direct the Registrar to make, an adjustment on its books and records with respect to such Global   Subordinated Note to reflect an increase in the aggregate principal amount of the Subordinated   Notes represented by the Global Subordinated Note, such instructions to contain information   regarding the Depositary account to be credited with such increase, the Trustee will cancel such   Definitive Subordinated Note and cause, or direct the Registrar to cause, in accordance with the   standing instructions and procedures existing between the Depositary and the Registrar, the   aggregate principal amount of Subordinated Notes represented by the Global Subordinated Note   to be increased by the aggregate principal amount of the Definitive Subordinated Note to be   exchanged, and will credit or cause to be credited to the account of the Person specified in such   instructions a beneficial interest in the Global Subordinated Note equal to the principal amount of   the Definitive Subordinated Note so cancelled.  If no Global Subordinated Notes are then   outstanding, the Company will issue and the Trustee will authenticate, upon Company Order, a   new Global Subordinated Note in the appropriate principal amount.    At such time as all beneficial interests in a particular Global Subordinated   Note have been exchanged for Definitive Subordinated Notes or a particular Global Subordinated   Note has been repurchased or canceled in whole and not in part, each such Global Subordinated   Note will be returned to or retained and canceled by the Trustee in accordance with Section 212   hereof.  At any time prior to such cancellation, if any beneficial interest in a Global Subordinated   Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a   beneficial interest in another Global Subordinated Note or for Definitive Subordinated Notes, the     

 

   22   principal amount of Subordinated Notes represented by such Global Subordinated Note will be   reduced accordingly by adjustments made on the records of the Trustee to reflect such reduction;   and if the beneficial interest is being exchanged for or transferred to a Person who will take   delivery thereof in the form of a beneficial interest in another Global Subordinated Note, such   other Global Subordinated Note will be increased accordingly by adjustments made on the records   of the Trustee to reflect such increase.    No Restricted Subordinated Note will be transferred or exchanged except   in compliance with the legend set forth in Section 204 or as provided in accordance with   Section 208.  In addition to the provisions for transfer and exchange set forth in this Section 207,   the Trustee, any Registrar and Paying Agent (if a different Person than the Trustee) and the   Company may, prior to effecting any requested transfer or exchange of any Restricted   Subordinated Notes, other than an exchange in accordance with Section 208, require that legal   counsel to the Holder or owner of beneficial interests requesting such transfer or exchange deliver   to the Trustee, any Registrar and Paying Agent (if a different Person than the Trustee) and the   Company, an Opinion of Counsel in compliance with this Indenture and additionally opining that   the transfer or exchange is in compliance with the requirements of the legend set forth in   Section 204 and that the Subordinated Note issued to the transferee or in exchange for the   Restricted Subordinated Note may be issued free of the legend set forth in Section 204.  Any   untransferred or unexchanged balance of a Restricted Subordinated Note will be reissued to the   Holder with the legend set forth in Section 204, unless the legend may be omitted in accordance   with Section 204, as evidenced by the Opinion of Counsel.   Section 208 Exchange Offer.     Upon the occurrence of an Exchange Offer in accordance with the Registration Rights   Agreement, the Company will issue and, upon receipt of a Company Order in accordance with   Section 205 hereof, the Trustee will authenticate (i) Unrestricted Definitive Subordinated Notes in   an aggregate principal amount equal to the principal amount of the Restricted Definitive   Subordinated Notes tendered in such Exchange Offer for acceptance by Persons that certify in the   applicable Letters of Transmittal that (x) they are not Participating Broker-Dealers, (y) they are   not participating in a distribution of the applicable Exchange Notes and (z) they are not Affiliates   of the Company, and accepted for exchange in such Exchange Offer or, if permitted by the   Company, (ii) one or more Unrestricted Global Subordinated Notes in an aggregate principal   amount equal to the principal amount of the beneficial interests in the Restricted Global   Subordinated Notes tendered in such Exchange Offer for acceptance by Persons that certify in the   applicable Letters of Transmittal that (x) they are not Participating Broker-Dealers, (y) they are   not participating in a distribution of the applicable Exchange Notes and (z) they are not Affiliates   of the Company, and accepted for exchange in such Exchange Offer.  Concurrently with the   issuance of such Unrestricted Definitive Subordinated Notes upon exchange of Restricted Global   Subordinated Notes, the Trustee will cause the aggregate principal amount of the applicable   Restricted Global Subordinated Notes to be reduced accordingly, and the Company will execute   and the Trustee will authenticate and mail to the Persons designated by the Holders of Definitive   Subordinated Notes so accepted Unrestricted Definitive Subordinated Notes in the applicable   principal amount. Any Subordinated Notes that remain outstanding after the consummation of   such Exchange Offer, and Exchange Notes issued in connection with such Exchange Offer, will   be treated as a single class of securities under this Indenture.     

 

   23   Section 209 Mutilated, Destroyed, Lost and Stolen Subordinated Notes.   If any mutilated Subordinated Note is surrendered to the Trustee, subject to the provisions   of this Section 209, the Company will execute and the Trustee will authenticate and deliver in   exchange therefor a new Subordinated Note containing identical terms and of like principal amount   and bearing a number not contemporaneously outstanding.   If there be delivered to the Company and to the Trustee (i) evidence to their satisfaction of   the destruction, loss or theft of any Subordinated Note, and (ii) such security or indemnity as may   be required by them to save each of them and any agent of either of them harmless, then, in the   absence of notice to the Company or the Trustee that such Subordinated Note has been acquired   by a bona fide purchaser, the Company will execute and, upon the Company’s request the Trustee   will authenticate and deliver, in exchange for or in lieu of any such destroyed, lost or stolen   Subordinated Note, a new Subordinated Note containing identical terms and of like principal   amount and bearing a number not contemporaneously outstanding.   Notwithstanding the foregoing provisions of this Section 209, in case the outstanding   principal balance of any mutilated, destroyed, lost or stolen Subordinated Note has become or is   about to become due and payable, the Company in its discretion may, instead of issuing a new   Subordinated Note, pay such Subordinated Note.   Upon the issuance of any new Subordinated Note under this Section, the Company may   require the payment of a sum sufficient to cover any tax or other governmental charge that may be   imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)   connected therewith.   Every new Subordinated Note issued in accordance with this Section in lieu of any   destroyed, lost or stolen Subordinated Note will constitute a separate obligation of the Company,   whether or not the destroyed, lost or stolen Subordinated Note will be at any time enforceable by   anyone, and will be entitled to all the benefits of this Indenture equally and proportionately with   any and all other Subordinated Notes duly issued hereunder.   The provisions of this Section, as amended or supplemented in accordance with this   Indenture with respect to particular Subordinated Notes or generally, will (to the extent lawful) be   exclusive and will preclude (to the extent lawful) all other rights and remedies with respect to the   replacement or payment of mutilated, destroyed, lost or stolen Subordinated Notes.   Section 210 Payment of Interest; Rights to Interest Preserved.   Any interest on any Subordinated Note that will be payable, and punctually paid or duly   provided for, on any Interest Payment Date will be paid to the Person in whose name such   Subordinated Note is registered as of the close of business on the Regular Record Date for such   interest.   Any interest on any Subordinated Note that will be payable, but will not be punctually paid   or duly provided for, on any Interest Payment Date for such Subordinated Note (herein called   “Defaulted Interest”) will cease to be payable to the Holder thereof on the relevant Regular Record     

 

   24   Date by virtue of having been such Holder; and such Defaulted Interest may be paid by the   Company, at its election in each case, as provided in clause (1) or (2) below:    The Company may elect to make payment of any Defaulted Interest to the   Person in whose name such Subordinated Note will be registered at the close of business on a   Special Record Date for the payment of such Defaulted Interest, which will be fixed in the   following manner.  The Company will notify the Trustee in writing of the amount of Defaulted   Interest proposed to be paid on such Subordinated Note and the date of the proposed payment, and   at the same time the Company will deposit with the Trustee an amount of money equal to the   aggregate amount proposed to be paid in respect of such Defaulted Interest or will make   arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed   payment, such money when so deposited to be held in trust for the benefit of the Person entitled to   such Defaulted Interest as in this clause provided. Thereupon, the Company will fix or cause to be   fixed a Special Record Date for the payment of such Defaulted Interest, which will be not more   than 15 days and not less than 10 days prior to the date of the proposed payment and not less than   10 days after the receipt by the Trustee of the notice of the proposed payment.  The Company (or,   upon the written request of the Company, the Trustee in the name and at the expense of the   Company), will cause notice of the proposed payment of such Defaulted Interest and the Special   Record Date therefor to be mailed, first-class postage prepaid, to the Holder of such Subordinated   Note at the Holder’s address as it appears in the Subordinated Note Register not less than 10 days   prior to such Special Record Date.  The Company may, in its discretion, in the name and at the   expense of the Company cause a similar notice to be published at least once in an Authorized   Newspaper of general circulation in the City of Houston, Texas, but such publication will not be a   condition precedent to the establishment of 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 will be paid to the Person in whose name such Subordinated   Note will be registered at the close of business on such Special Record Date and will no longer be   payable under the following clause (2).    The Company may make payment of any Defaulted Interest in any other   lawful manner not inconsistent with the requirements of any securities exchange on which such   Subordinated Note may be listed, and upon such notice as may be required by such exchange, if,   after notice given by the Company to the Trustee of the proposed payment under this Clause, such   payment will be deemed practicable by the Trustee.   Unless otherwise provided in or under this Indenture or the Subordinated Notes, at the   option of the Company, interest on Subordinated Notes that bear interest may be paid by mailing   a check to the address of the Person entitled thereto as such address will appear in the Subordinated   Note Register or by transfer to an account maintained by the payee with a bank located in the   United States of America.   Subject to the foregoing provisions of this Section and Section 206, each Subordinated   Note delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of   any other Subordinated Note will carry the rights to interest accrued and unpaid, and to accrue,   which were carried by such other Subordinated Note.     

 

   25   Section 211 Persons Deemed Owners.   Prior to due presentment of a Subordinated Note for registration of transfer, the Company,   the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such   Subordinated Note is registered in the Subordinated Note Register as the owner of such   Subordinated Note for the purpose of receiving payment of principal of, and (subject to Section 206   and Section 210) interest on, such Subordinated Note and for all other purposes whatsoever,   whether or not any payment with respect to such Subordinated Note will be overdue, and neither   the Company, the Trustee or any agent of the Company or the Trustee will be affected by notice   to the contrary.   No holder of any beneficial interest in any Global Subordinated Note held on its behalf by   a Depositary will have any rights under this Indenture with respect to such Global Subordinated   Note, and such Depositary may be treated by the Company, the Trustee, and any agent of the   Company or the Trustee as the owner of such Global Subordinated Note for all purposes   whatsoever.  None of the Company, the Trustee, any Paying Agent or the Registrar will have any   responsibility or liability for any aspect of the records relating to or payments made on account of   beneficial ownership interests of a Global Subordinated Note or for maintaining, supervising or   reviewing any records relating to such beneficial ownership interests.   Notwithstanding the foregoing, nothing herein will prevent the Company, the Trustee, any   Paying Agent or the Registrar from giving effect to any written certification, proxy or other   authorization furnished by the applicable Depositary, as a Holder, with respect to a Global   Subordinated Note or impair, as between such Depositary and the owners of beneficial interests in   such Global Subordinated Note, the operation of customary practices governing the exercise of the   rights of such Depositary (or its nominee) as the Holder of such Global Subordinated Note.   Section 212 Cancellation.   All Subordinated Notes surrendered for payment, redemption, registration of transfer or   exchange will, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and   any such Subordinated Notes, as well as Subordinated Notes surrendered directly to the Trustee   for any such purpose, will be cancelled promptly by the Trustee.  The Company may at any time   deliver to the Trustee for cancellation any Subordinated Notes previously authenticated and   delivered hereunder which the Company may have acquired in any manner whatsoever, and all   Subordinated Notes so delivered will be cancelled promptly by the Trustee.  No Subordinated   Notes will be authenticated in lieu of or in exchange for any Subordinated Notes cancelled as   provided in this Section, except as expressly permitted by or under this Indenture.  All cancelled   Subordinated Notes held by the Trustee will be disposed of in accordance with its procedure for   the disposition of cancelled Subordinated Notes, and the Trustee upon the written request of the   Company will deliver to the Company a certificate of such disposition, or if directed by a Company   Order returned to the Company.     

 

   26   Section 213 Computation of Interest.   Interest on the Subordinated Notes will be computed on the basis of a 360-day year of   twelve 30-day months and, for any period less than a full month, on the number of days actually   elapsed.   Section 214 CUSIP Numbers.    The Company may issue the Subordinated Notes with one or more “CUSIP” numbers (if   then generally in use).  The Company will promptly notify the Trustee of any change in the CUSIP   numbers.  The Trustee may use “CUSIP” numbers in notices (including but not limited to notices   of redemption or exchange) as a convenience to Holders; provided that any such notice may state   that no representation is made as to the correctness of such numbers either as printed on the   Subordinated Notes or as contained in any notice (including any notice of redemption or exchange)   and that reliance may be placed only on the other identification numbers printed on the   Subordinated Notes, and any such notice will not be affected by any defect in or omission of such   numbers.   ARTICLE III.   SATISFACTION AND DISCHARGE OF INDENTURE   Section 301 Satisfaction and Discharge.   This Indenture will cease to be of further effect, and the Trustee, on receipt of a Company   Order, at the expense of the Company, will execute proper instruments acknowledging satisfaction   and discharge of this Indenture, when    either   (a) all Subordinated Notes theretofore authenticated and delivered   (other than (i) Subordinated Notes that have been destroyed, lost or stolen and which have been   replaced or paid as provided in Section 209 and (ii) Subordinated Notes for whose payment money   has theretofore been deposited in trust or segregated and held in trust by the Company and   thereafter repaid to the Company or discharged from such trust, as provided in Section 903) have   been delivered to the Trustee for cancellation; or   (b) all Subordinated Notes that have not been delivered to the Trustee   for cancellation (i) have become due and payable, or (ii) will become due and payable at their   Stated Maturity within one year, or (iii) if redeemable at the option of the Company, are to be   called for redemption within one year under arrangements satisfactory to the Trustee for the giving   of notice of redemption by the Trustee in the name, and at the expense, of the Company, and the   Company, in the case of (i), (ii) or (iii) above, has deposited or caused to be deposited with the   Trustee as trust funds in trust for such purpose, an amount sufficient to pay and discharge the entire   indebtedness on such Subordinated Notes not theretofore delivered to the Trustee for cancellation,   including the principal of, and interest on, such Subordinated Notes, to the date of such deposit (in   the case of Subordinated Notes which have become due and payable) or to the Maturity thereof,   as the case may be;     

 

   27    the Company has paid or caused to be paid all other sums payable hereunder   by the Company with respect to the Outstanding Subordinated Notes; and    the Company has delivered to the Trustee an Officers’ Certificate and an   Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the   satisfaction and discharge of this Indenture have been satisfied.   Notwithstanding the satisfaction and discharge of this Indenture with respect to the   Subordinated Notes, the obligations of the Company to the Trustee under Section 507 and, if   money will have been deposited with the Trustee in accordance with Section 301(1)(b), the   obligations of the Company and the Trustee with respect to the Subordinated Notes under   Section 303 and Section 903, any rights of Holders to require the Company to repurchase or repay,   and any rights of Holders to convert or exchange, and the obligations of the Company to convert   or exchange, such Subordinated Notes into Common Stock or other securities or property, will   survive.   Section 302 Defeasance and Covenant Defeasance.    The Company may at its option and at any time, elect to have Section 302(2)   or Section 302(3) be applied to such Outstanding Subordinated Notes upon compliance with the   conditions set forth below in this Section 302.  Legal Defeasance and Covenant Defeasance may   be effected only with respect to all, and not less than all, of the Outstanding Subordinated Notes.      Upon the Company’s exercise of the above option applicable to this   Section 302(2), the Company will be deemed to have been discharged from its obligations with   respect to such Outstanding Subordinated Notes on the date the conditions set forth in clause (4)   of this Section 302 are satisfied (“Legal Defeasance”).  For this purpose, Legal Defeasance means   that the Company will be deemed to have paid and discharged the entire indebtedness represented   by such Outstanding Subordinated Notes, which will thereafter be deemed to be “Outstanding”   only for the purposes of Section 302(5) and the other Sections of this Indenture referred to in   clauses (i) through (iv) of this paragraph, and to have satisfied all of its other obligations under   such Subordinated Notes and this Indenture insofar as such Subordinated Notes are concerned (and   the Trustee, at the expense of the Company, will execute proper instruments acknowledging the   same), except for the following which will survive until otherwise terminated or discharged   hereunder: (i) the rights of Holders of such Outstanding Subordinated Notes to receive, solely from   the trust fund described in Section 302(4)(a) and as more fully set forth in this Section 302 and   Section 303, payments in respect of the principal of and interest, if any, on, such Subordinated   Notes when such payments are due, (ii) the obligations of the Company and the Trustee with   respect to such Subordinated Notes under Section 206, Section 209, Section 902 and Section 903,   (iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (iv) this   Section 302 and Section 303.  The Company may exercise its option under this Section 302(2)   notwithstanding the prior exercise of its option under Section 302(3) with respect to such   Subordinated Notes.    Upon the Company’s exercise of the above option applicable to this   Section 302(3), the Company will be released from its obligations under clauses (ii) and (iii) of   Section 904 and under Section 905, Section 906 and Section 907 on and after the date the     

 

   28   conditions set forth in Section 302(4) are satisfied (“Covenant Defeasance”), and such   Subordinated Notes will thereafter be deemed to be not “Outstanding” for the purposes of any   direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof)   in connection with any such covenant, but will continue to be deemed “Outstanding” for all other   purposes hereunder. For this purpose, such Covenant Defeasance means that with respect to such   Outstanding Subordinated Notes, the Company may omit to comply with, and will have no liability   in respect of, any term, condition or limitation set forth in any such Section or any such other   covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such   Section or such other covenant or by reason of reference in any such Section or such other covenant   to any other provision herein or in any other document and such omission to comply will not   constitute a default, but, except as specified above, the remainder of this Indenture and such   Subordinated Notes will be unaffected thereby.    The following will be the conditions to application of Section 302(2) or   Section 302(3) to any Outstanding Subordinated Notes:   (a) The Company will irrevocably have deposited or caused to be   deposited with the Trustee (or another trustee satisfying the requirements of Section 508 who will   agree to comply with the provisions of this Section 302 applicable to it) as trust funds in trust for   the purpose of making the following payments, specifically pledged as security for, and dedicated   solely to, the benefit of the Holders, (i) an amount in Dollars, (ii) Government Obligations that   through the scheduled payment of principal and interest in respect thereof in accordance with their   terms will provide, not later than one day before the due date of any payment of principal of and   interest, if any, on such Subordinated Notes, money or (iii) a combination thereof, in any case, in   an amount, sufficient, without consideration of any reinvestment of such principal and interest, in   the opinion of a nationally recognized firm of independent public accountants expressed in a   written certification thereof delivered to the Trustee, to pay and discharge, and which will be   applied by the Trustee (or other qualifying trustee) to pay and discharge, the principal of and   interest, if any, on, such Outstanding Subordinated Notes on the Stated Maturity of such principal   or installment of principal or interest or the applicable Redemption Date, as the case may be.   (b) Such Legal Defeasance or Covenant Defeasance will not result in a   breach or violation of, or constitute a default under, this Indenture or any other material agreement   or instrument to which the Company or any Subsidiary is a party or by which it is bound.   (c) No Event of Default or event which with notice or lapse of time or   both would become an Event of Default with respect to such Subordinated Notes will have   occurred and be continuing on the date of such deposit, and, solely in the case of Legal Defeasance   under Section 302(2), no Event of Default, or event which with notice or lapse of time or both   would become an Event of Default, under Section 401 will have occurred and be continuing at any   time during the period ending on and including the 91st day after the date of such deposit (it being   understood that this condition to Legal Defeasance under Section 302(2) will not be deemed   satisfied until the expiration of such period).   (d) In the case of Legal Defeasance, the Company will have delivered   to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee stating that (i) the   Company has received from, or there has been published by, the Internal Revenue Service a ruling,     

 

   29   or (ii) since the date of this Indenture there has been a change in applicable federal income tax law,   in either case to the effect that, and based thereon such opinion of independent counsel will confirm   that, the Holders of such Outstanding Subordinated Notes will not recognize income, gain or loss   for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal   income tax on the same amounts, in the same manner and at the same times as would have been   the case if such Legal Defeasance had not occurred.   (e) In the case of Covenant Defeasance, the Company will have   delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee to the effect   that the Holders of such Outstanding Subordinated Notes will not recognize income, gain or loss   for federal income tax purposes as a result of such Covenant Defeasance and will be subject to   federal income tax on the same amounts, in the same manner and at the same times as would have   been the case if such Covenant Defeasance had not occurred.   (f) The Company will have delivered to the Trustee an Officers’   Certificate and an Opinion of Counsel, each stating that all conditions precedent to the Legal   Defeasance or Covenant Defeasance, as the case may be, under this Indenture have been satisfied.   (g) If the moneys or Government Obligations or combination thereof,   as the case may be, deposited under Section 302(4)(a) above are sufficient to pay the principal of,   and interest, if any, on, such Subordinated Notes provided such Subordinated Notes are redeemed   on a particular Redemption Date, the Company will have given the Trustee irrevocable instructions   to redeem such Subordinated Notes on such date and to provide notice of such redemption to   Holders as provided in or under this Indenture.   (h) The Trustee will have received such other documents, assurances   and Opinions of Counsel as the Trustee will have reasonably required.    Subject to the provisions of the last paragraph of Section 903, all money   and Government Obligations deposited with the Trustee (or other qualifying trustee, collectively   for purposes of this Section 302(5), the “Trustee”) in accordance with Section 302(4)(a) in respect   of any Outstanding Subordinated Notes will be held in trust and applied by the Trustee, in   accordance with the provisions of such Subordinated Notes and this Indenture, to the payment,   either directly or through any Paying Agent (other than the Company or any Subsidiary or Affiliate   of the Company acting as Paying Agent) as the Trustee may determine, to the Holders of all sums   due and to become due thereon in respect of principal and interest but such money and Government   Obligations need not be segregated from other funds, except to the extent required by law.   The Company will pay and indemnify the Trustee against any tax, fee or other charge,   imposed on or assessed against the Government Obligations deposited in accordance with this   Section 302 or the principal or interest received in respect thereof other than any such tax, fee or   other charge which by law is for the account of the Holders of the Outstanding Subordinated Notes.   Section 303 Application of Trust Money.   Subject to the provisions of the last paragraph of Section 903, all money and Government   Obligations deposited with the Trustee in accordance with Section 301 or Section 302 will be held   in trust and applied by the Trustee, in accordance with the provisions of such Subordinated Notes     

 

   30   subject to discharge under Section 301 or Legal Defeasance or Covenant Defeasance under   Section 302, and this Indenture, to the payment, either directly or through any Paying Agent   (including the Company, acting as its own Paying Agent) as the Trustee may determine, to the   Persons entitled thereto, of the principal and interest for whose payment such money has or   Government Obligations have been deposited with or received by the Trustee; but such money and   Government Obligations need not be segregated from other funds, except to the extent required by   law.   Section 304 Reinstatement.   If the Trustee (or other qualifying trustee appointed in accordance with Section 302(4)(a))   or any Paying Agent is unable to apply any moneys or Government Obligations deposited in   accordance with Section 301(1) or Section 302(4)(a) to pay any principal of, or interest, if any, on,   the Subordinated Notes by reason of any legal proceeding or any order or judgment of any court   or governmental authority enjoining, restraining or otherwise prohibiting such application, then   the Company’s obligations under this Indenture and the Subordinated Notes will be revived and   reinstated as though no such deposit had occurred, until such time as the Trustee (or other   qualifying trustee) or Paying Agent is permitted to apply all such moneys and Government   Obligations to pay the principal of, and interest, if any, on the Subordinated Notes as contemplated   by Section 301 or Section 302 as the case may be; provided, however, that if the Company makes   any payment of the principal of, or interest if any on, the Subordinated Notes following the   reinstatement of its obligations as aforesaid, the Company will be subrogated to the rights of the   Holders of such Subordinated Notes to receive such payment from the funds held by the Trustee   (or other qualifying trustee) or Paying Agent.   Section 305 Effect on Subordination Provisions.   The provisions of Article XI are expressly made subject to the provisions for, and to the   right of the Company to effect, the satisfaction and discharge of all of the Subordinated Notes as   set forth in and in accordance with Section 301 and the provisions for, and to the right of the   Company to effect, Legal Defeasance and Covenant Defeasance of all of the Subordinated Notes   as set forth in and in accordance with Section 302.  As a result, and anything herein to the contrary   notwithstanding, if the Company complies with the provisions of Section 301 to effect the   satisfaction and discharge of the Subordinated Notes or complies with the provisions of   Section 302 to effect the Legal Defeasance or Covenant Defeasance, upon the effectiveness of   such satisfaction and discharge in accordance with Section 301 or of Legal Defeasance or   Covenant Defeasance in accordance with Section 302, in the case of satisfaction and discharge in   accordance with Section 301, or, in the case of Legal Defeasance or Covenant Defeasance in   accordance with Section 302, the Subordinated Notes as to which Legal Defeasance or Covenant   Defeasance, as the case may be, will have become effective will thereupon cease to be so   subordinated in right of payment to the Senior Indebtedness and will no longer be subject to the   provisions of Article XI and, without limitation to the foregoing, all moneys and Government   Obligations deposited with the Trustee (or other qualifying trustee) in trust in connection with such   satisfaction and discharge, Legal Defeasance or Covenant Defeasance, as the case may be, and all   proceeds therefrom may be applied to pay the principal of, and interest, if any, on, such   Subordinated Notes as and when the same will become due and payable notwithstanding the     

 

   31   provisions of Article XI without regard to whether any or all of the Senior Indebtedness then   outstanding will have been paid or otherwise provided for.   ARTICLE IV.   REMEDIES   Section 401 Events of Default; Acceleration.   An “Event of Default” means any one of the following events (whatever the reason for   such Event of Default and whether it will be voluntary or involuntary or be effected by operation   of law or in accordance with any judgment, decree, or order of any court or any order, rule, or   regulation of any administrative or governmental body):    the entry of a decree or order for relief in respect of the Company by a court   having jurisdiction in the premises in an involuntary case or proceeding under any applicable   bankruptcy, insolvency, or reorganization law, now or hereafter in effect of the United States of   America or any political subdivision thereof, and such decree or order will have continued   unstayed and in effect for a period of 60 consecutive days;    the commencement by the Company of a voluntary case under any   applicable bankruptcy, insolvency or reorganization law, now or hereafter in effect of the United   States of America or any political subdivision thereof, or the consent by the Company to the entry   of a decree or order for relief in an involuntary case or proceeding under any such law;     the failure of the Company to pay any installment of interest on any of the   Subordinated Notes as and when the same will become due and payable, and the continuation of   such failure for a period of 30 days;    the failure of the Company to pay all or any part of the principal of any of   the Subordinated Notes as and when the same will become due and payable under this Indenture;    the failure of the Company to perform any other covenant or agreement on   the part of the Company contained in the Subordinated Notes or in this Indenture, and the   continuation of such failure for a period of 60 days after the date on which notice specifying such   failure, stating that such notice is a “Notice of Default” hereunder and demanding that the   Company remedy the same, will have been given, in the manner set forth in Section 105, to the   Company by the Trustee, or to the Company and the Trustee by the Holders of at least 25% in   aggregate principal amount of the Subordinated Notes at the time Outstanding; or    the default by the Company under any bond, debenture, note or other   evidence of indebtedness for money borrowed by the Company having an aggregate principal   amount outstanding of at least $25,000,000, whether such indebtedness now exists or is created or   incurred in the future, which default (i) constitutes a failure to pay any portion of the principal of   such indebtedness when due and payable after the expiration of any applicable grace period or (ii)   results in such indebtedness becoming due or being declared due and payable prior to the date on   which it otherwise would have become due and payable without, in the case of clause (i), such   indebtedness having been discharged or, in the case of clause (ii), without such indebtedness   having been discharged or such acceleration having been rescinded or annulled.     

 

   32   Upon becoming aware of any Event of Default, the Company will promptly deliver to the   Trustee a written statement specifying the Event of Default.   If an Event of Default described in Section 401(1) or Section 401(2) occurs, then the   principal amount of all of the Outstanding Subordinated Notes, and accrued and unpaid interest, if   any, on all Outstanding Subordinated Notes will become and be immediately due and payable   without any declaration or other act on the part of the Trustee or any Holder, and the Company   waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other   notices.  Notwithstanding the foregoing, because the Company will treat the Subordinated Notes   as tier 2 capital (or its then equivalent if the Company were subject to such capital requirement)   for purposes of capital adequacy guidelines of the Federal Reserve Board as then in effect and   applicable to the Company, upon the occurrence of an Event of Default other than an Event of   Default described in Section 401(1) or Section 401(2), neither the Trustee nor the Holder may   accelerate the Maturity of the Subordinated Notes and make the principal of, and any accrued and   unpaid interest on, the Subordinated Notes, immediately due and payable.   If any Event of Default occurs and is continuing, the Trustee may also pursue any other   available remedy to collect the payment of principal of, and interest on, the Subordinated Notes or   to enforce the performance of any provision of the Subordinated Notes or this Indenture.   Section 402 Failure to Make Payments.   If the Company fails to make any payment of interest on any Subordinated Note when such   interest becomes due and payable and such default continues for a period of 30 days, or if the   Company fails to make any payment of the principal of any Subordinated Note when such principal   becomes due and payable, the Company will, upon demand of the Trustee, pay to the Trustee, for   the benefit of the Holders of such Subordinated Notes, the whole amount then due and payable   with respect to such Subordinated Notes, with interest upon the overdue principal, and, to the   extent permitted by applicable law, upon any overdue installments of interest at the rate or   respective rates, as the case may be, provided for or with respect to such Subordinated Notes or, if   no such rate or rates are so provided, at the rate or respective rates, as the case may be, of interest   borne by such Subordinated Notes, and, in addition thereto, such further amount of money as will   be sufficient to cover the costs and expenses of collection, including the reasonable compensation,   expenses, disbursements and advances of the Trustee, its agents and counsel and all other amounts   due to the Trustee under Section 507.   If the Company fails to pay the money it is required to pay the Trustee upon such demand,   the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding   for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or   final decree, and may enforce the same against the Company or any other obligor upon such   Subordinated Notes and collect the moneys adjudged or decreed to be payable in the manner   provided by law out of the property of the Company, wherever situated.   The Trustee may in its discretion proceed to protect and enforce its rights and the rights of   the Holders of Subordinated Notes by such appropriate judicial proceedings as the Trustee will   deem most effectual to protect and enforce any such rights, whether for the specific enforcement     

 

   33   of any covenant or agreement in this Indenture or in aid of the exercise of any power granted in   this Indenture, or to enforce any other proper remedy.   Upon the occurrence of a failure by the Company to make any required payment of   principal or interest on the Subordinated Notes, the Company may not 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, make any payment of principal or interest or premium, if any,   on or repay, repurchase or redeem any debt securities of the Company that rank equal with or   junior to the Subordinated Notes, or make any payments under any guarantee that ranks equal with   or junior to the Subordinated Notes, other than: (i) any dividends or distributions in shares of, or   options, warrants or rights to subscribe for or purchase shares of, any class of Company’s common   stock; (ii) any declaration of a dividend in connection with the implementation of a shareholders’   rights plan, or the issuance of stock under any such plan in the future, or the redemption or   repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of Company’s   capital stock or the exchange or conversion of one class or series of Company’s capital stock for   another class or series of Company’s capital stock; (iv) the purchase of fractional interests in shares   of Company’s capital stock in accordance with the conversion or exchange provisions of such   capital stock or the security being converted or exchanged; or (v) purchases of any class of   Company’s common stock related to the issuance of common stock or rights under any of benefit   plans for Company’s directors, officers or employees or any of Company’s dividend reinvestment   plans.   Section 403 Trustee May File Proofs of Claim.   In case of any judicial proceeding relative to the Company (or any other obligor upon the   Subordinated Notes), its property or its creditors, the Trustee will be entitled and empowered, by   intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust   Indenture Act in order to have claims of the Holders and the Trustee allowed in any such   proceeding.  In particular, the Trustee will be authorized to    file and prove a claim for the whole amount, or such lesser amount as may   be provided for in the Subordinated Notes, of the principal and interest owing and unpaid in respect   of such Subordinated Notes and to file such other papers or documents as may be necessary or   advisable in order to have the claims of the Trustee (including any claim for the reasonable   compensation, expenses, disbursements and advances of the Trustee, its agents or counsel) and of   the Holders of such Subordinated Notes allowed in such judicial proceeding, and    collect and receive any moneys or other property payable or deliverable on   any such claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator, or other similar official in   any such judicial proceeding is authorized by each Holder to make such payments to the Trustee   and, in the event that the Trustee will consent to the making of such payments directly to the   Holders and to pay to the Trustee any amount due it for the reasonable compensation, expenses,   disbursements, and advances of the Trustee, its agents and counsel, and any other amounts due the   Trustee under Section 507.     

 

   34   No provision of this Indenture will be deemed to authorize the Trustee to authorize or   consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,   adjustment, or composition affecting the Subordinated Notes or the rights of any Holder or to   authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;   provided, however, the Trustee may vote on behalf of the Holders for the election of a trustee in   bankruptcy or similar official and may be a member of a creditors, or other similar committee.   Section 404 Trustee May Enforce Claims Without Possession of Subordinated Notes.   All rights of action and claims under this Indenture or the Subordinated Notes may be   prosecuted and enforced by the Trustee without the possession of any of the Subordinated Notes   or the production of such Subordinated Notes in any related proceeding, and any such proceeding   instituted by the Trustee will be brought in its own name as trustee of an express trust, and any   recovery of judgment will, after provision for the payment of the reasonable compensation,   expenses, disbursements, and advances of the Trustee, its agents, and counsel, be for the ratable   benefit of the Holders in respect of which such judgment has been recovered.   Section 405 Application of Money Collected.   Any money collected by the Trustee in accordance with this Article IV or, after an Event   of Default, any money or other property distributable in respect of the Company’s obligations   under this Indenture will be applied in the following order, at the date or dates fixed by the Trustee   and, in case of the distribution of such money on account of principal or any interest, upon   presentation of the Subordinated Notes and the notation on such Subordinated Notes of the   payment if only partially paid and upon surrender of such Subordinated Notes if fully paid:   FIRST: To the payment of all amounts due the Trustee (including any predecessor trustee)   under Section 507;    SECOND: To the payment of amounts then due and unpaid to the holders of Senior   Indebtedness, to the extent required under the Subordination Provisions established with respect   to the Subordinated Notes;   THIRD: To the payment of the amounts then due and unpaid for principal of and any   interest on the Subordinated Notes in respect of which or for the benefit of which such money has   been collected, ratably, without preference or priority of any kind, according to the aggregate   amounts due and payable on such Subordinated Notes for principal and interest, respectively; and   FOURTH: The balance, if any, to the Person or Persons entitled thereto.   Section 406 Limitation on Suits.   No Holder of any Subordinated Note will have any right to institute any proceeding,   judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee,   or for any other remedy under this Indenture, unless:    such Holder has previously given written notice to the Trustee of a   continuing Event of Default with respect to the Subordinated Notes;     

 

   35    the Holders of not less than 25% in aggregate principal amount of the   Outstanding Subordinated Notes will have made written request to the Trustee to institute   proceedings in respect of such Event of Default in its own name as Trustee under the Indenture;    such Holder or Holders have offered to the Trustee indemnity reasonably   satisfactory to the Trustee against the costs, expenses, and liabilities to be incurred in compliance   with such request;    the Trustee for 60 days after its receipt of such notice, request, and offer of   indemnity has failed to institute any such proceeding; and    no direction inconsistent with such written request has been given to the   Trustee during such 60-day period by the Holders of a majority in principal amount of the   Outstanding Subordinated Notes;   it being understood and intended that no one or more of such Holders will have any right in any   manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb,   or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or   preference over any other of such Holders or to enforce any right under this Indenture, except in   the manner provided in this Indenture and for the equal and ratable benefit of all of such Holders.   Section 407 Unconditional Right of Holders to Payments.   Notwithstanding any other provision in this Indenture, the Holder of any Subordinated   Note will have the right, which is absolute and unconditional, to receive payment of the principal   of and (subject to Section 206 and Section 210) any interest on such Subordinated Note on the   respective Stated Maturity or Maturities expressed in such Subordinated Note (or, in the case of   redemption, on the Redemption Date), and to institute suit for the enforcement of any such   payment and such rights will not be impaired without the consent of such Holder.      Section 408 Restoration of Rights and Remedies.   If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy   under this Indenture and such proceeding has been discontinued or abandoned for any reason, or   has been determined adversely to the Trustee or to such Holder, then and in every such case,   subject to any determination in such proceeding, the Company, the Trustee and the Holders will   be restored severally and respectively to their former positions under this Indenture, and thereafter   all rights and remedies of the Trustee and the Holders will continue as though no such proceeding   had been instituted.   Section 409 Rights and Remedies Cumulative.   Except as otherwise provided with respect to the replacement or payment of mutilated,   destroyed, lost, or stolen Subordinated Notes in the last paragraph of Section 209, no right or   remedy conferred in this Indenture upon or reserved to the Trustee or to the Holders is intended to   be exclusive of any other right or remedy, and every right and remedy will, to the extent permitted   by law, be cumulative and in addition to every other right and remedy given under this Indenture   or now or in the future existing at law or in equity or otherwise.  The assertion or employment of     

 

   36   any right or remedy under this Indenture, or otherwise, will not prevent the concurrent assertion   or employment of any other appropriate right or remedy.   Section 410 Delay or Omission Not Waiver.   No delay or omission of the Trustee or of any Holder of any Subordinated Notes to exercise   any right or remedy accruing upon any Event of Default will impair any such right or remedy or   constitute a waiver of or acquiescence in any such Event of Default.  Every right and remedy given   by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and   as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.   Section 411 Control by Holders.   The Holders of a majority in aggregate principal amount of the Outstanding Subordinated   Notes will 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 the Subordinated Notes, provided that    such direction will not violate any rule of law or this Indenture or the   Subordinated Notes,    the Trustee may take any other action deemed proper by the Trustee which   is not inconsistent with such direction, and    the Trustee will have the right to decline to follow any such direction if the   Trustee in good faith will, by a Responsible Officer or Officers of the Trustee, determine that the   proceeding so directed would involve the Trustee in personal liability.      Section 412 Waiver of Past Defaults.   The Holders of not less than a majority in aggregate principal amount of the Outstanding   Subordinated Notes may on behalf of the Holders of all the Subordinated Notes waive any past   default under this Indenture and its consequences, except a default in the payment of the principal   of, or interest on, any Subordinated Note, or in respect of a covenant or provision of this Indenture   which under Article VIII cannot be modified or amended without the consent of the Holder of each   Outstanding Subordinated Note.   Upon any such waiver, such default will cease to exist, and any Event of Default arising   from such default will be deemed to have been cured, for every purpose of this Indenture; but no   such waiver will extend to any subsequent or other default or impair any consequent right.   Section 413 Undertaking for Costs.   All parties to this Indenture agree, and each Holder of any Subordinated Notes by his   acceptance of such Subordinated Notes will 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, suffered, 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     

 

   37   may in its discretion assess reasonable costs, including reasonable attorney’s 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 413 will not apply to   any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by   any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of   the Outstanding Subordinated Notes, or to any suit instituted by any Holder for the enforcement   of the payment of the principal of or interest, if any, on any Subordinated Notes on or after the   Stated Maturity or Maturities expressed in such Subordinated Notes (or, in the case of redemption,   on or after the Redemption Date).     ARTICLE V.   THE TRUSTEE   Section 501 Duties of Trustee.    If an Event of Default has occurred and is continuing, the Trustee will   exercise such of the rights and powers vested in it hereby, and use the same degree of care and   skill in its exercise, as a prudent person would exercise or use under the circumstances in the   conduct of such person’s own affairs.    Except during the continuance of an Event of Default:   (a) the duties of the Trustee will be determined solely by the express   provisions hereof and the Trustee need perform only those duties that are specifically set forth   herein and no others, and no implied covenants or obligations will be read into this Indenture   against the Trustee; and   (b) in the absence of bad faith on its part, the Trustee may conclusively   rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon   certificates or opinions furnished to the Trustee and conforming to the requirements hereof;   however, the Trustee will examine the certificates and opinions to determine whether or not they   conform to the requirements hereof (but need not confirm or investigate the accuracy of   mathematical calculations or other facts stated therein).    Whether or not therein expressly so provided, every provision hereof that   in any way relates to the Trustee is subject to paragraphs (1) and (2) of this Section 501 and to   Section 502.    No provision hereof will require the Trustee to expend or risk its own funds   or incur any liability.  The Trustee will be under no obligation to exercise any of its rights and   powers under this Indenture at the request of any Holders, unless such Holder has offered to the   Trustee security and indemnity reasonably satisfactory to it against any loss, liability or expense.    The Trustee will not be liable for interest on any money received by it   except as the Trustee may agree in writing with the Company.  Money held in trust by the Trustee   need not be segregated from other funds except to the extent required by law.     

 

   38   Section 502 Certain Rights of Trustee.   Subject to Section 315(a) through Section 315(d) of the Trust Indenture Act:    the Trustee may conclusively rely and will be protected in acting or   refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,   notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or   other paper or document believed by it to be genuine and to have been signed or presented by the   proper party or parties;    any request or direction of the Company mentioned herein will be   sufficiently evidenced by a Company Request or a Company Order (in each case, other than   delivery of any Subordinated Note, to the Trustee for authentication and delivery in accordance   with Section 205 which will be sufficiently evidenced as provided therein) and any resolution of   the Board of Directors may be sufficiently evidenced by a Board Resolution;      whenever in the administration of this Indenture the Trustee will deem it   desirable that a matter be proved or established prior to taking, suffering or omitting any action   hereunder, the Trustee (unless other evidence will be herein specifically prescribed) may, in the   absence of bad faith on its part, rely upon an Officers’ Certificate or Opinion of Counsel, or both,   which will comply with Section 102;    before the Trustee acts or refrains from acting, it may require an Officers’   Certificate or an Opinion of Counsel or both.  The Trustee will not be liable for any action it takes   or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.  The   Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel   will be full and complete authorization and protection from liability in respect of any action taken,   suffered or omitted by it hereunder in good faith and in reliance thereon.  The Trustee may act   through its attorneys and agents and will not be responsible for the misconduct or negligence of   any agent appointed with due care.    the Trustee will be under no obligation to exercise any of the rights or   powers vested in it by or under this Indenture at the request or direction of any Holder(s) under   this Indenture, unless such Holder(s) will have offered to the Trustee security or indemnity   satisfactory to the Trustee against the costs, expenses and liabilities that might be incurred by it in   compliance with such request or direction;    the Trustee will not be bound to make any investigation into the facts or   matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,   direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or   document, but the Trustee, in its discretion, may make such further inquiry or investigation into   such facts or matters as it may see fit, and, if the Trustee will determine to make such further   inquiry or investigation, it will be entitled to examine, during business hours and upon reasonable   notice, the books, records and premises of the Company, personally or by agent or attorney, at the   sole cost of the Company and will incur no liability or additional liability of any kind by reason of   such inquiry or investigation;     

 

   39    the Trustee may execute any of the trusts or powers hereunder or perform   any duties hereunder either directly or by or through agents or attorneys and the Trustee will not   be responsible for any misconduct or negligence on the part of any agent or attorney appointed   with due care by it hereunder;    the Trustee will not be liable for any action taken, suffered or omitted to be   taken 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;    in no event will the Trustee be responsible or liable for special, indirect or   consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)   irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and   regardless of the form of action;    The Trustee will not be required to take notice or be deemed to have notice   of any Event of Default, except failure by the Company to pay or cause to be made any of the   payments required to be made to the Trustee, unless a Responsible Officer will be specifically   notified by a writing of such default by the Company or by the Holders of at least 25% in aggregate   principal amount of the then Outstanding Subordinated Notes delivered to the Corporate Trust   Office of the Trustee and in the absence of such notice so delivered the Trustee may conclusively   assume no Event of Default exists;    the rights, privileges, protections, immunities and benefits given to the   Trustee, including, without limitation, its right to be indemnified, are extended to, and will be   enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other   Person employed to act hereunder; and    the Trustee may request that the Company deliver a certificate setting forth   the names of individuals and/or titles of officers authorized at such time to take specified actions   under this Indenture.   Section 503 Notice of Defaults.   Within 90 days after the Trustee is notified of the occurrence of any default hereunder with   respect to the Subordinated Notes, the Trustee will transmit by mail to all Holders entitled to   receive reports in accordance with Section 603(3), notice of such default hereunder known to the   Trustee, unless such default will have been cured or waived; provided, however, that, except in   the case of a default in the payment of the principal of, or interest, if any, on, any Subordinated   Note, the Trustee will be protected in withholding such notice if and so long as the Board of   Directors and/or Responsible Officers of the Trustee in good faith determine that the withholding   of such notice is in the best interest of the Holders. For the purpose of this Section, the term   “default” means any event that is, or after notice or lapse of time or both would become, an Event   of Default with respect to Subordinated Notes.   Section 504 Not Responsible for Recitals or Issuance of Subordinated Notes.   The recitals contained herein and in the Subordinated Notes, except the Trustee’s certificate   of authentication, will be taken as the statements of the Company and neither the Trustee nor any     

 

   40   Authenticating Agent assumes any responsibility for their correctness.  The Trustee makes no   representations as to the validity or sufficiency of this Indenture or of the Subordinated Notes,   except that the Trustee represents that it is duly authorized to execute and deliver this Indenture,   authenticate the Subordinated Notes and perform its obligations hereunder and that the statements   made by it in any Statement of Eligibility on Form T-1 supplied to the Company are true and   accurate, subject to the qualifications set forth therein.  Neither the Trustee nor any Authenticating   Agent will be accountable for the use or application by the Company of the Subordinated Notes   or the proceeds thereof.  The Trustee will not be responsible for and makes no representation as to   the validity or adequacy of this Indenture or the Subordinated Notes, it will not be accountable for   the Company’s use of the proceeds from the Subordinated Notes or any money paid to the   Company or upon the Company’s direction under any provision hereof, it will not be responsible   for the use or application of any money received by any Paying Agent other than the Trustee, and   it will not be responsible for any statement or recital herein or any statement in the Subordinated   Notes or any other document in connection with the sale of the Subordinated Notes or under this   Indenture other than its certificate of authentication.   Section 505 May Hold Subordinated Notes.   The Trustee, any Authenticating Agent, any Paying Agent, any Registrar or any other   Person that may be an agent of the Trustee or the Company, in its individual or any other capacity,   may become the owner or pledgee of Subordinated Notes and, subject to Section 310(b) and   Section 311 of the Trust Indenture Act, may otherwise deal with the Company with the same rights   that it would have if it were not Trustee, Authenticating Agent, Paying Agent, Registrar or such   other Person.   Section 506 Money Held in Trust.   Except as provided in Section 302(5), Section 303 and Section 903, money held by the   Trustee in trust hereunder need not be segregated from other funds except to the extent required   by law and will be held uninvested.  The Trustee will be under no liability for interest on any   money received by it hereunder except as otherwise agreed in writing with the Company.   Section 507 Compensation and Reimbursement.   The Company agrees:    to pay to the Trustee from time to time reasonable compensation for all   services rendered by the Trustee hereunder (which compensation will not be limited by any   provision of law in regard to the compensation of a trustee of an express trust);    except as otherwise expressly provided herein, to reimburse the Trustee   upon its request for all reasonable expenses, disbursements and advances incurred or made by the   Trustee in accordance with any provision of this Indenture (including the reasonable compensation   and the expenses and disbursements of its agents and counsel), except any such expense,   disbursement or advance as may be attributable to the Trustee’s negligence or bad faith; and    to indemnify each of the Trustee or any predecessor Trustee and their agents   for, and to hold them harmless against, any loss, liability or expense (including, without limitation,     

 

   41   the reasonable fees and disbursements of the Trustee’s agents, legal counsel, accountants and   experts) and including taxes (other than taxes based upon, measured by or determined by the   income of the Trustee), arising out of or in connection with the acceptance or administration of its   duties hereunder, including the costs and expenses of enforcing this Indenture against the   Company (including this Section 507) and defending itself against any claim (whether asserted by   the Company, or any Holder or any other Person) or liability in connection with the exercise or   performance of any of their powers or duties hereunder, or in connection with enforcing the   provisions of this Section, except to the extent that any such loss, liability or expense was due to   the Trustee’s negligence or bad faith.   The obligations of the Company under this Section 507 will survive the satisfaction and   discharge of this Indenture.   As security for the performance of the obligations of the Company under this Section, the   Trustee will have a lien prior to the Subordinated Notes upon all property and funds held or   collected by the Trustee as such, except funds held in trust for the payment of principal of, or   interest on, Subordinated Notes.  Such lien will survive the satisfaction and discharge hereof.   Any compensation or expense incurred by the Trustee after a default specified by   Section 401 intended to constitute an expense of administration under any then applicable   bankruptcy or insolvency law.  “Trustee” for purposes of this Section 507 will include any   predecessor Trustee, but the negligence or bad faith of any Trustee will not affect the rights of any   other Trustee under this Section 507.  The provisions of this Section 507 will, to the extent   permitted by law, survive any termination of this Indenture (including, without limitation,   termination in accordance with any Bankruptcy Laws) and the resignation or removal of the   Trustee.   Section 508 Corporate Trustee Required; Eligibility.    There will at all times be a Trustee hereunder that is a corporation,   organized and doing business under the laws of the United States of America, any state thereof or   the District of Columbia, eligible under Section 310(a)(1) of the Trust Indenture Act to act as   trustee under an indenture qualified under the Trust Indenture Act and that has a combined capital   and surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least   $50,000,000 subject to supervision or examination by federal or state authority.  The Trustee will   also satisfy the requirements of Section 310(a)(5) of the Trust Indenture Act.  If at any time the   Trustee will cease to be eligible in accordance with the provisions of this Section, it will resign   immediately in the manner and with the effect hereinafter specified in this Article.    The Trustee will comply with Section 310(b) of the Trust Indenture Act;   provided, however, that there will be excluded from the operation of Section 310(b)(1) of the Trust   Indenture Act this Indenture or any indenture or indentures under which other securities or   certificates of interest or participation in other securities of the Company are outstanding if the   requirements for such exclusion set forth in Section 310(b)(1) of the Trust Indenture Act are met.     

 

   42   Section 509 Resignation and Removal; Appointment of Successor.    No resignation or removal of the Trustee and no appointment of a successor   Trustee in accordance with this Article V will become effective until the acceptance of   appointment by the successor Trustee in accordance with Section 510.    The Trustee may resign at any time with respect to the Subordinated Notes   by giving written notice thereof to the Company.  If the instrument of acceptance by a successor   Trustee required by Section 510 will not have been delivered to the Trustee within 30 days after   the giving of such notice of resignation, the resigning Trustee may, at the Company’s expense,   petition any court of competent jurisdiction for the appointment of a successor Trustee.    The Trustee may be removed at any time with respect to the Subordinated   Notes by Act of the Holders of a majority in principal amount of the Outstanding Subordinated   Notes, delivered to the Trustee and the Company.   If at any time:   (a) the Trustee will fail to comply with the obligations imposed upon it   under Section 310(b) of the Trust Indenture Act with respect to Subordinated Notes after written   request therefor by the Company or any Holder who has been a bona fide Holder for at least six   months,    (b) the Trustee will cease to be eligible under Section 508 and will fail   to resign after written request therefor by the Company or any such Holder, or   (c) the Trustee will become incapable of acting or will be adjudged a   bankrupt or insolvent or a receiver of the Trustee or of its property will be appointed or any public   officer will 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, (i) the Company, by or in accordance with a Board Resolution, may remove   the Trustee with respect to the Subordinated Notes, or (ii) subject to Section 315(e) of the Trust   Indenture Act, any Holder who has been a bona fide Holder for at least six months may, on behalf   of himself and all others similarly situated, petition any court of competent jurisdiction for the   removal of the Trustee with respect to all Subordinated Notes and the appointment of a successor   Trustee or Trustees.    If the Trustee will resign, be removed or become incapable of acting, or if   a vacancy will occur in the office of Trustee for any cause, with respect to the Subordinated Notes,   the Company, by or in accordance with a Board Resolution, will promptly appoint a successor   Trustee or Trustees with respect to the Subordinated Notes and will comply with the applicable   requirements of Section 510. If, within one year after such resignation, removal or incapability, or   the occurrence of such vacancy, a successor Trustee with respect to the Subordinated Notes will   be appointed by Act of the Holders of a majority in principal amount of the Outstanding   Subordinated Notes delivered to the Company and the retiring Trustee, the successor Trustee so   appointed will, forthwith upon its acceptance of such appointment in accordance with the   applicable requirements of Section 510, become the successor Trustee with respect to the     

 

   43   Subordinated Notes and to that extent supersede the successor Trustee appointed by the Company.   If no successor Trustee with respect to the Subordinated Notes will have been so appointed by the   Company or the Holders and accepted appointment in the manner required by Section 510, any   Holder who has been a bona fide Holder for at least six months may, on behalf of himself and all   others similarly situated, petition any court of competent jurisdiction for the appointment of a   successor Trustee with respect to the Subordinated Notes.    The Company will give notice of each resignation and each removal of the   Trustee with respect to the Subordinated Notes and each appointment of a successor Trustee with   respect to the Subordinated Notes by mailing written notice of such event by first-class mail,   postage prepaid, to the Holders as their names and addresses appear in the Subordinated Note   Register.  Each notice will include the name of the successor Trustee with respect to the   Subordinated Notes and the address of its Corporate Trust Office.   Section 510 Acceptance of Appointment by Successor.    Upon the appointment hereunder of any successor Trustee with respect to   all Subordinated Notes, such successor Trustee so appointed will execute, acknowledge and   deliver to the Company and the retiring Trustee an instrument accepting such appointment, and   thereupon the resignation or removal of the retiring Trustee will become effective and such   successor Trustee, without any further act, deed or conveyance, will become vested with all the   rights, powers, trusts and duties hereunder of the retiring Trustee; but, on the request of the   Company or such successor Trustee, such retiring Trustee, upon payment of its charges, will   execute and deliver an instrument transferring to such successor Trustee all the rights, powers and   trusts of the retiring Trustee and, subject to Section 903, will duly assign, transfer and deliver to   such successor Trustee all property and money held by such retiring Trustee hereunder, subject   nevertheless to its claim, if any, provided for in Section 507.    Upon the appointment hereunder of any successor Trustee with respect to   the Subordinated Notes, the Company, the retiring Trustee and such successor Trustee will execute   and deliver an indenture supplemental hereto wherein each successor Trustee will accept such   appointment and which (i) will contain such provisions as will be necessary or desirable to transfer   and confirm to, and to vest in, such successor Trustee all the rights, powers, trusts and duties of   the retiring Trustee with respect to the Subordinated Notes, (ii) if the retiring Trustee is not retiring   with respect to all Subordinated Notes, will contain such provisions as will be deemed necessary   or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with   respect to the Subordinated Notes will continue to be vested in the retiring Trustee, and (iii) will   add to or change any of the provisions of this Indenture as will be necessary to provide for or   facilitate the administration of the trusts hereunder by more than one Trustee, it being understood   that nothing herein or in such supplemental indenture will constitute such Trustees co-trustees of   the same trust, that each such Trustee will be trustee of a trust or trusts hereunder separate and   apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee   will be responsible for any notice given to, or received by, or any act or failure to act on the part   of any other Trustee hereunder, and, upon the execution and delivery of such supplemental   indenture, the resignation or removal of the retiring Trustee will become effective to the extent   provided therein, such retiring Trustee will have no further responsibility for the exercise of rights   and powers or for the performance of the duties and obligations vested in the Trustee under this     

 

   44   Indenture with respect to the Subordinated Notes other than as hereinafter expressly set forth, and   such successor Trustee, without any further act, deed or conveyance, will become vested with all   the rights, powers, trusts and duties of the retiring Trustee with respect to the Subordinated Notes;   but, on request of the Company or such successor Trustee, such retiring Trustee, upon payment of   its charges with respect to the Subordinated Notes and subject to Section 903 will duly assign,   transfer and deliver to such successor Trustee, to the extent contemplated by such supplemental   indenture, the property and money held by such retiring Trustee hereunder with respect to the   Subordinated Notes, subject to its claim, if any, provided for in Section 507.    Upon request of any Person appointed hereunder as a successor Trustee, the   Company will execute any and all instruments for more fully and certainly vesting in and   confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (1)   or (2) of this Section, as the case may be.    No Person will accept its appointment hereunder as a successor Trustee   unless at the time of such acceptance such successor Person will be qualified and eligible under   this Article.   Section 511 Merger, Conversion, Consolidation or Succession to Business.   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 will be a party, or any corporation succeeding to all or substantially all of the   corporate trust business of the Trustee, will be the successor of the Trustee hereunder (provided   that such corporation will otherwise be qualified and eligible under this Article), without the   execution or filing of any paper or any further act on the part of any of the parties hereto. In case   any Subordinated Notes will have been authenticated but not delivered by the Trustee then in   office, any such successor to such authenticating Trustee may adopt such authentication and   deliver the Subordinated Notes so authenticated with the same effect as if such successor Trustee   had itself authenticated such Subordinated Notes.  In case any Subordinated Notes will not have   been authenticated by such predecessor Trustee, any such successor Trustee may authenticate and   deliver such Subordinated Notes in either its own name or that of its predecessor Trustee.   Section 512 Appointment of Authenticating Agent.   The Trustee may appoint one or more Authenticating Agents acceptable to the Company   with respect to the Subordinated Notes which will be authorized to act on behalf of the Trustee to   authenticate Subordinated Notes issued upon original issue, exchange, registration of transfer,   partial redemption, partial repayment, or in accordance with Section 209, and Subordinated Notes   so authenticated will be entitled to the benefits of this Indenture and will be valid and obligatory   for all purposes as if authenticated by the Trustee hereunder.  Wherever reference is made in this   Indenture to the authentication and delivery of Subordinated Notes by the Trustee or the Trustee’s   certificate of authentication, such reference will be deemed to include authentication and delivery   on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed   on behalf of the Trustee by an Authenticating Agent.     

 

   45   Each Authenticating Agent will be reasonably acceptable to the Company and, except as   provided in or under this Indenture, will at all times be a corporation that would be permitted by   the Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture   Act, is authorized under applicable law and by its charter to act as an Authenticating Agent and   has a combined capital and surplus (computed in accordance with Section 310(a)(2) of the Trust   Indenture Act) of at least $50,000,000.  If at any time an Authenticating Agent will cease to be   eligible in accordance with the provisions of this Section, it will resign immediately in the manner   and with the effect specified in this Section.   Any corporation into which an Authenticating Agent may be merged or converted or with   which it may be consolidated, or any corporation resulting from any merger, conversion or   consolidation to which such Authenticating Agent will be a party, or any corporation succeeding   to all or substantially all of the corporate agency or corporate trust business of an Authenticating   Agent, will be the successor of such Authenticating Agent hereunder, provided such corporation   will be otherwise eligible under this Section, without the execution or filing of any paper or any   further act on the part of the Trustee or the Authenticating Agent.   An Authenticating Agent may resign at any time by giving written notice thereof to the   Trustee and the Company.  The Trustee may at any time terminate the agency of an Authenticating   Agent by giving written notice thereof to such Authenticating Agent and the Company.  Upon   receiving such a notice of resignation or upon such a termination, or in case at any time such   Authenticating Agent will cease to be eligible in accordance with the provisions of this Section,   the Trustee may appoint a successor Authenticating Agent that will be acceptable to the Company   and will mail written notice of such appointment by first-class mail, postage prepaid, to all Holders   with respect to which such Authenticating Agent will serve, as their names and addresses appear   in the Subordinated Note Register. Any successor Authenticating Agent, upon acceptance of its   appointment hereunder, will become vested with all the rights, powers and duties of its predecessor   hereunder, with like effect as if originally named as an Authenticating Agent.  No successor   Authenticating Agent will be appointed unless eligible under the provisions of this Section 512.   The Company agrees to pay each Authenticating Agent from time to time reasonable   compensation for its services under this Section.  If the Trustee makes such payments, it will be   entitled to be reimbursed for such payments, subject to the provisions of Section 507.   The provisions of Section 211, Section 504 and Section 505 will be applicable to each   Authenticating Agent.   If an Authenticating Agent is appointed under this Section, the Subordinated Notes may   have endorsed thereon, in addition to or in lieu of the Trustee’s certificate of authentication, an   alternate certificate of authentication in substantially the following form:   This is one of the Subordinated Notes designated herein referred to in the within-mentioned   Indenture.          As Trustee         

 

   46   By:     As Authenticating Agent       By:     As Authenticating Signatory       Section 513 Preferred Collection of Claims against Company.   If and when the Trustee will be or become a creditor of the Company (or any other obligor   upon the Subordinated Notes), the Trustee will be subject to the provisions of the Trust Indenture   Act regarding the collection of claims against the Company (or any such other obligor).   ARTICLE VI.   HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY   Section 601 Holder Lists.   The Trustee will preserve in as current a form as is reasonably practicable the most recent   list available to it of the names and addresses of the Holders.  If the Trustee is not the Registrar,   the Company will cause to be furnished to the Trustee at least semiannually on January 1 and July   1 a listing of the Holders dated within 10 days of the date on which the list is furnished and at such   other times as the Trustee may request in writing a list in such form and as of such date as the   Trustee may reasonably require of the names and addresses of the Holders.   Section 602 Preservation of Information; Communications to Holders.   The Trustee will comply with the obligations imposed upon it in accordance with Section   312 of the Trust Indenture Act.   Every Holder of Subordinated Notes, by receiving and holding the same, agrees with the   Company and the Trustee that neither the Company, the Trustee, any Paying Agent or any   Registrar will be held accountable by reason of the disclosure of any such information as to the   names and addresses of the Holders of Subordinated Notes in accordance with Section 312(c) of   the Trust Indenture Act, regardless of the source from which such information was derived, and   that the Trustee will not be held accountable by reason of mailing any material in accordance with   a request made under Section 312(b) of the Trust Indenture Act.   Section 603 Reports by Trustee.    Within 60 days after July 15 of each year commencing with the first July 15   following the date of this Indenture, if required by Section 313(a) of the Trust Indenture Act, the   Trustee will transmit, in accordance with Section 313(c) of the Trust Indenture Act, a brief report   dated as of such July 15 with respect to any of the events specified in said Section 313(a) and   Section 313(b)(2) that may have occurred since the later of the immediately preceding July 15 and   the date of this Indenture.    The Trustee will transmit the reports required by Section 313(a) of the Trust   Indenture Act at the times specified therein.     

 

   47    Reports under this Section will be transmitted in the manner and to the   Persons required by Section 313(c) and Section 313(d) of the Trust Indenture Act.   Section 604 Reports by Company.    The Company, in accordance with Section 314(a) of the Trust Indenture   Act, will:   (a) file with the Trustee, within 15 days after the Company files the   same with the Commission, copies of the annual reports and of the information, documents and   other reports (or copies of such portions of any of the foregoing as the Commission may from time   to time by rules and regulations prescribe) that the Company may be required to file with the   Commission in accordance with Section 13 or Section 15(d) of the Exchange Act; or, if the   Company is not required to file information, documents or reports in accordance with either of   said Sections, then it will file with the Trustee and the Commission, in accordance with rules and   regulations prescribed from time to time by the Commission, such of the supplementary and   periodic information, documents and reports that may be required in accordance with Section 13   of the Exchange Act in respect of a security listed and registered on a national securities exchange   as may be prescribed from time to time in such rules and regulations;   (b) file with the Trustee and the Commission, in accordance with rules   and regulations prescribed from time to time by the Commission, such additional certificates,   information, documents and reports with respect to compliance by the Company, with the   conditions and covenants of this Indenture as may be required from time to time by such rules and   regulations; and   (c) transmit to the Holders within 30 days after the filing thereof with   the Trustee, in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act,   such summaries of any information, documents and reports required to be filed by the Company   in accordance with paragraphs (1) and (2) of this Section as may be required by rules and   regulations prescribed from time to time by the Commission.  Delivery of such reports, information   and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such   will not constitute constructive notice of any information contained therein or determinable from   information contained therein, including the Company’s compliance with any of its covenants   hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).    The Company intends to file the reports referred to in Section 604(1) with   the Commission in electronic form in accordance with Regulation S-T of the Commission using   the Commission’s Electronic Data Gathering, Analysis and Retrieval system.  Compliance with   the foregoing, or any successor electronic system approved by the Commission, will constitute   delivery by the Company of such reports to the Trustee and Holders in compliance with the   provision of Section 604(1) and Trust Indenture Act Section 314(a).  Notwithstanding anything to   the contrary herein, the Trustee will have no duty to search for or obtain any electronic or other   filings that the Company makes with the Commission, regardless of whether such filings are   periodic, supplemental or otherwise.  Delivery of the reports, information and documents to the   Trustee in accordance with this Section 604(2) will be solely for the purposes of compliance with   this Section 604(2) and with Trust Indenture Act Section 314(a).  The Trustee’s receipt of such     

 

   48   reports, information and documents is for informational purposes only and the Trustee’s receipt of   such will not constitute constructive notice of any information contained therein or determinable   from information contained therein, including the Company’s compliance with any of its   covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’   Certificates).   ARTICLE VII.   SUCCESSORS   Section 701 Merger, Consolidation or Sale of All or Substantially All Assets.   The Company will not, in any transaction or series of related transactions, consolidate with   or merge into any Person or sell, assign, transfer, lease or otherwise convey all or substantially all   its properties and assets to any Person, unless:    either the Company will be the continuing Person (in the case of a merger),   or the successor Person (if other than the Company) formed by such consolidation or into which   the Company is merged or which acquires by sale, assignment, transfer, lease or other conveyance   all or substantially all the properties and assets of the Company will be a corporation organized   and existing under the laws of the United States of America, any state thereof or the District of   Columbia and will expressly assume, by an indenture (or indentures, if at such time there is more   than one Trustee) supplemental hereto, executed by such successor corporation and delivered to   the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of,   and interest on, all the Outstanding Subordinated Notes and the due and punctual performance and   observance of every obligation in this Indenture and the Outstanding Subordinated Notes on the   part of the Company to be performed or observed;    immediately after giving effect to such transaction and treating any   indebtedness that becomes an obligation of the Company or any Subsidiary as a result of that   transaction as having been incurred by the Company or any Subsidiary at the time of the   transaction, no Event of Default, and no event which, after notice or lapse of time, or both, would   become an Event of Default, will have occurred and be continuing; and    either the Company or the successor Person will have delivered to the   Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,   merger, sale, assignment, transfer, lease or other conveyance and, if a supplemental indenture is   required in connection with such transaction, such supplemental indenture comply with this   Article VII and that all conditions precedent herein provided for relating to such transaction have   been complied with.   For purposes of the foregoing, any sale, assignment, transfer, lease or other conveyance of   all or any of the properties and assets of one or more Subsidiaries of the Company (other than to   the Company or another Subsidiary), which, if such properties and assets were owned by the   Company, would constitute all or substantially all of the Company’s properties and assets, will be   deemed to be the transfer of all or substantially all of the properties and assets of the Company.     

 

   49   Section 702 Successor Person Substituted for Company.   Upon any consolidation by the Company with or merger of the Company into any other   Person or any sale, assignment, transfer, lease or conveyance of all or substantially all of the   properties and assets of the Company to any Person in accordance with Section 701, the successor   Person formed by such consolidation or into which the Company is merged or to which such sale,   assignment, transfer, lease or other conveyance is made will succeed to, and be substituted for, and   may exercise every right and power of, the Company under this Indenture with the same effect as   if such successor Person had been named as the Company herein; and thereafter, except in the case   of a lease, the predecessor Person will be released from all obligations and covenants under this   Indenture and the Subordinated Notes.   ARTICLE VIII.   SUPPLEMENTAL INDENTURES   Section 801 Supplemental Indentures without Consent of Holders.   Without the consent of any Holders of Subordinated Notes, the Company (when authorized   by or in accordance with a Board Resolution) and the Trustee, at any time and from time to time,   may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for   any of the following purposes:    to evidence the succession of another Person to the Company, and the   assumption by any such successor of the covenants of the Company contained herein and in the   Subordinated Notes;     to add to the covenants of the Company for the benefit of the Holders (as   will be specified in such supplemental indenture or indentures) or to surrender any right or power   herein conferred upon the Company with respect to the Subordinated Notes issued under this   Indenture (as will be specified in such supplemental indenture or indentures);     to permit or facilitate the issuance of Subordinated Notes in uncertificated   or global form, provided any such action will not adversely affect the interests of the Holders;     to evidence and provide for the acceptance of appointment hereunder by a   successor Trustee with respect to the Subordinated Notes and to add to or change any of the   provisions of this Indenture as will be necessary to provide for or facilitate the administration of   the trusts hereunder by more than one Trustee, in accordance with the requirements of Section 510;     to cure any ambiguity or to correct or supplement any provision herein that   may be defective or that may be inconsistent with any other provision herein;     to make any other provisions with respect to matters or questions arising   under this Indenture that will not adversely affect the interests of the Holders of then Outstanding   Subordinated Notes;     to add any additional Events of Default (as will be specified in such   supplemental indenture);      

 

   50    to supplement any of the provisions of this Indenture to such extent as will   be necessary to permit or facilitate the Legal Defeasance, Covenant Defeasance and/or satisfaction   and discharge of the Subordinated Notes in accordance with Article III, provided that any such   action will not adversely affect the interests of any Holder;     to provide for the issuance of Exchange Notes;    to conform any provision in this Indenture to the requirements of the Trust   Indenture Act; or    to make any change that does not adversely affect the legal rights under this   Indenture of any Holder.   Section 802 Supplemental Indentures with Consent of Holders.   With the consent of the Holders of not less than a majority in principal amount of the   Outstanding Subordinated Notes, by Act of said Holders delivered to the Company and the   Trustee, the Company (when authorized by or in accordance with a Board Resolution), and the   Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding   any provisions to or changing in any manner or eliminating any of the provisions of this Indenture   or of the Subordinated Notes or of modifying in any manner the rights of the Holders under this   Indenture; provided, that no such supplemental indenture, without the consent of the Holder of   each Outstanding Subordinated Note affected thereby, will    reduce the rate of or change the time for payment of interest, including   Defaulted Interest, on any Subordinated Notes;    reduce the principal of or change the Stated Maturity of any Subordinated   Notes, or change the date on which any Subordinated Notes may be subject to redemption or   reduce the Redemption Price therefore;    make any Subordinated Note payable in money other than Dollars;     make any change in provisions of this Indenture protecting the right of each   Holder to receive payment of principal of and interest on such Subordinated Note on or after the   due date thereof or to bring suit to enforce such payment,     reduce the percentage in principal amount of the Outstanding Subordinated   Notes, the consent of whose Holders is required for any such supplemental indenture, or the   consent of whose Holders is required for any waiver (of compliance with certain provisions of this   Indenture or certain defaults hereunder and their consequences) provided for in Section 412 or   Section 906 of this Indenture, or    modify any of the provisions of this Section 802, Section 412 or   Section 906, except to increase any such percentage or to provide that certain other provisions of   this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding   Subordinated Note affected thereby.     

 

   51   It will not be necessary for any Act of Holders under this Section 802 to approve the   particular form of any proposed supplemental indenture, but it will be sufficient if such Act will   approve the substance thereof.   Section 803 Execution of Supplemental Indentures.   As a condition to executing, or accepting the additional trusts created by, any supplemental   indenture permitted by this Article VIII or the modifications thereby of the trust created by this   Indenture, the Trustee will be entitled to receive, and (subject to Section 501) will be fully   protected in relying upon, an Officers’ Certificate and an Opinion of Counsel to the effect that the   execution of such supplemental indenture is authorized or permitted by this Indenture and that   such supplemental indenture has been duly authorized, executed and delivered by, and is a valid,   binding and enforceable obligation of, the Company, subject to customary exceptions. The Trustee   may, but will not be obligated to, enter into any such supplemental indenture which affects the   Trustee’s own rights, duties or immunities under this Indenture or otherwise.   Section 804 Effect of Supplemental Indentures.   Upon the execution of any supplemental indenture under this Article VIII, this Indenture   will be modified in accordance therewith, and such supplemental indenture will form a part of this   Indenture for all purposes; and every Holder theretofore or thereafter authenticated and delivered   hereunder.   Section 805 Reference in Subordinated Notes to Supplemental Indentures.   Subordinated Notes authenticated and delivered after the execution of any supplemental   indenture in accordance with this Article VIII may, and will if required by the Company, bear a   notation in form approved by the Company as to any matter provided for in such supplemental   indenture.  If the Company will so determine, new Subordinated Notes so modified as to conform,   in the opinion of the Company, to any such supplemental indenture may be prepared and executed   by the Company and authenticated and delivered by the Trustee in exchange for Outstanding   Subordinated Notes.   Section 806 Effect on Senior Indebtedness.   No supplemental indenture will directly or indirectly modify or eliminate the Subordination   Provisions or the definition of “Senior Indebtedness” applicable with respect to the Subordinated   Notes in any manner that might terminate or impair the subordination of such Subordinated Notes   to such Senior Indebtedness without the prior written consent of each of the holders of such Senior   Indebtedness.   Section 807 Conformity with Trust Indenture Act.   Every supplemental indenture executed in accordance with this Article will conform to the   requirements of the Trust Indenture Act as then in effect.     

 

   52   ARTICLE IX.   COVENANTS   Section 901 Payment of Principal and Interest.   The Company covenants and agrees for the benefit of the Holders that it will duly and   punctually pay the principal of, and interest on, the Subordinated Notes, in accordance with the   terms thereof and this Indenture.  Principal and interest will be considered paid on the date due if   the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 11:00 a.m.,   Houston, Texas time, on any Interest Payment Date, an amount in immediately available funds   provided by the Company that is designated for and sufficient to pay all principal and interest then   due.  The Company will pay all Additional Interest, if any, on the dates and in the amounts set   forth in the Registration Rights Agreement.   If Additional Interest is payable by the Company in accordance with the Registration   Rights Agreement and paragraph 2 of the Subordinated Notes, the Company will deliver to the   Trustee a certificate to that effect stating (i) the amount of such Additional Interest that is payable   and (ii) the date on which such interest is payable.  Unless and until a Responsible Officer of the   Trustee receives such a certificate or instruction or direction from the Holders in accordance with   the terms of this Indenture, the Trustee may assume without inquiry that no Additional Interest is   payable.  The foregoing will not prejudice the rights of the Holders with respect to their entitlement   to Additional Interest as otherwise set forth in this Indenture or the Subordinated Notes and   pursuing any action against the Company directly or otherwise directing the Trustee to take such   action in accordance with the terms of this Indenture and the Subordinated Notes.  If the Company   has paid Additional Interest directly to persons entitled to it, the Company will deliver to the   Trustee a certificate setting forth the particulars of such payment.   Section 902 Maintenance of Office.   The Company will maintain an office or agency in the City of Houston, Texas (which may   be an office of the Trustee or an Affiliate of the Trustee or Registrar) where Subordinated Notes   may be surrendered for registration of transfer or for exchange and where notices and demands to   or upon the Company in respect of the Subordinated Notes and this Indenture may be served.  The   Company will give prompt written notice to the Trustee of the location, and any change in the   location, of such office or agency.  If at any time the Company fails to maintain any such required   office or agency or fails to furnish the Trustee with the address thereof, such presentations,   surrenders, notices and demands may be made or served at the Corporate Trust Office of the   Trustee.   The Company may also from time to time designate one or more other offices or agencies   where the Subordinated Notes may be presented or surrendered for any or all such purposes and   may from time to time rescind such designations; provided that no such designation or recission   will in any manner relieve the Company of its obligation to maintain an office or agency in the   City of Houston, Texas. The Company will give prompt written notice to the Trustee of any such   designation or rescission and of any change in the location of any such other office or agency.     

 

   53   The Company hereby designates the Corporate Trust Office of the Trustee as one such   office or agency of the Company in accordance with Section 902.   Section 903 Money for Subordinated Notes Payments to Be Held in Trust.   If the Company will at any time act as its own Paying Agent, it will, on or before each due   date of the principal of, or interest on, any of the Subordinated Notes, segregate and hold in trust   for the benefit of the Persons entitled thereto a sum in Dollars sufficient to pay the principal and   interest, as the case may be, so becoming due until such sums will be paid to such Persons or   otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or   failure so to act.   Whenever the Company will have one or more Paying Agents, it will, on or prior to each   due date of the principal of, or interest on, any Subordinated Notes, deposit with any Paying Agent   a sum in Dollars sufficient to pay the principal and interest, as the case may be, 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 will promptly notify the Trustee of its action or failure so to   act.   The Company will cause each Paying Agent other than the Trustee to execute and deliver   to the Trustee an instrument in which such Paying Agent will agree with the Trustee, subject to   the provisions of this Section, that such Paying Agent will:    hold all sums held by it for the payment of the principal of, or interest on,   the Subordinated Notes in trust for the benefit of the Persons entitled thereto until such sums will   be paid to such Persons or otherwise disposed of as provided in or under this Indenture;    give the Trustee notice of any default by the Company in the making of any   payment of principal, or interest on, the Subordinated Notes; and    at any time during the continuance of any such default, upon the written   request of the Trustee, pay to the Trustee all sums so held in trust by such Paying Agent.   The Company may at any time, for the purpose of obtaining the satisfaction and discharge   of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to   pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be   held by the Trustee upon the same terms as those upon which such sums were held by the Company   or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying   Agent will be released from all further liability with respect to such sums.   Any money deposited with the Trustee or any Paying Agent, or then held by the Company,   in trust for the payment of the principal of, or interest on, any Subordinated Note and remaining   unclaimed for two years after such principal or interest will have become due and payable will be   paid to the Company upon a Company Request, or (if then held by the Company) will be   discharged from such trust; and the Holder of such Subordinated Note will thereafter, as an   unsecured general creditor, look only to the Company for payment thereof, and all liability of the   Trustee or such Paying Agent with respect to such trust money, and all liability of the Company   as trustee thereof, will thereupon cease; provided, however, that the Trustee or such Paying Agent,     

 

   54   before being required to make any such repayment, may, not later than 30 days after the   Company’s request for such repayment, at the expense of the Company cause to be published once,   in an Authorized Newspaper in each Place of Payment or to be mailed to such Holders of   Subordinated Notes, or both, notice that such money remains unclaimed and that, after a date   specified therein, which will not be less than 30 days from the date of such publication or mailing   nor will it be earlier than two years after such principal and or interest will have become due and   payable, any unclaimed balance of such money then remaining will be repaid to the Company.   Section 904 Corporate Existence.   Subject to Article VII, the Company will do or cause to be done all things necessary to   preserve and keep in full force and effect (i) the corporate existence of the Company, (ii) the   existence (corporate or other) of each Significant Subsidiary and (iii) the rights (charter and   statutory), licenses and franchises of the Company and each of its Significant Subsidiaries;   provided, however, that the Company will not be required to preserve the existence (corporate or   other) of any of its Significant Subsidiaries or any such right, license or franchise of the Company   or any of its Significant Subsidiaries if the Board of Directors of the Company determines that the   preservation thereof is no longer desirable in the conduct of the business of the Company and its   Significant Subsidiaries taken as a whole and that the loss thereof will not be disadvantageous in   any material respect to the Holders.   Section 905 Maintenance of Properties.   The Company will, and will cause each Significant Subsidiary to, cause all its properties   used or useful in the conduct of its business to be maintained and kept in good condition, repair   and working order and supplied with all necessary equipment and will cause to be made all   necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the   judgment of the Company may be necessary so that the business carried on in connection therewith   may be properly and advantageously conducted at all times; provided, however, that nothing in   this Section will prevent the Company or any Significant Subsidiary from discontinuing the   operation and maintenance of any of their respective properties if such discontinuance is, in the   judgment of the Board of Directors of the Company or of any Significant Subsidiary, as the case   may be, desirable in the conduct of its business.   Section 906 Waiver of Certain Covenants.   The Company may omit in any particular instance to comply with any term, provision or   condition set forth in Section 902 to Section 905, inclusive, with respect to the Subordinated Notes   if before the time for such compliance the Holders of at least a majority in principal amount of the   Outstanding Subordinated Notes, by Act of such Holders, either will waive such compliance in   such instance or generally will have waived compliance with such term, provision or condition,   but no such waiver will extend to or affect such term, provision or condition except to the extent   so expressly waived, and, until such waiver will become effective, the obligations of the Company   and the duties of the Trustee in respect of any such term, provision or condition will remain in full   force and effect.     

 

   55   Section 907 Company Statement as to Compliance.   The Company will deliver to the Trustee, within 120 days after the end of each fiscal year,   an Officers’ Certificate covering the preceding calendar year, stating whether or not, to the best of   his or her knowledge, the Company is in default in the performance and observance of any of the   terms, provisions and conditions of this Indenture (without regard to notice requirements or periods   of grace) and if the Company will be in default, specifying all such defaults and the nature and   status thereof of which he or she may have knowledge.   ARTICLE X.   REDEMPTION OF SECURITIES   Section 1001 Applicability of Article.    Except as provided in this Section 1001, the Subordinated Notes are not   subject to redemption at the option of the Company.  The Subordinated Notes are not subject to   redemption at the option of the Holders.      Subject to the receipt of any required regulatory approvals, the Company at   any time or from time to time on or after November 18, 2024 may redeem all or a portion of the   Subordinated Notes.      Subject to the receipt of any required regulatory approvals, the Company   may redeem all, but not a portion, of the Outstanding Subordinated Notes at any time upon an   Investment Company Event, a Tax Event or a Tier 2 Capital Event.     The Redemption Price with respect to any redemption permitted under this   Indenture will be equal to 100% of the principal amount of the Subordinated Notes to be redeemed,   plus accrued but unpaid interest and Additional Interest, if any, thereon to, but excluding, the   Redemption Date.   Section 1002 Election to Redeem; Notice to Trustee.   The election of the Company to redeem any Subordinated Notes will be evidenced by a   Company Order.  In case of any redemption of less than all of the Subordinated Notes, the   Company will, at least 60 days prior to the Redemption Date fixed by the Company (unless a   shorter notice will be satisfactory to the Trustee, but in any event not less than 45 days prior to the   Redemption Date), notify the Trustee, of such Redemption Date and of the principal amount of   Subordinated Notes to be redeemed.   In the case of any redemption of Subordinated Notes (i) prior to the expiration of any   restriction on such redemption provided in the terms of such Subordinated Notes or elsewhere in   this Indenture or (ii) in accordance with an election of the Company that is subject to a condition   specified in the terms of such Subordinated Notes or elsewhere in this Indenture, the Company   will furnish to the Trustee an Officers’ Certificate evidencing compliance with such restriction or   condition.     

 

   56   Section 1003 Selection by Trustee of Subordinated Notes to be Redeemed.   If less than all of the Subordinated Notes are to be redeemed, the particular Subordinated   Notes to be redeemed will be selected not more than 45 days prior to the Redemption Date by the   Trustee from the Outstanding Subordinated Notes not previously called for redemption unless   otherwise required by law or applicable depositary requirements, by lot or such method as the   Trustee will deem fair and appropriate and which may provide for the selection for redemption of   portions of the principal amount of Subordinated Notes; provided, however, that no such partial   redemption will reduce the portion of the principal amount of a Subordinated Note not redeemed   to less than the minimum denomination for a Subordinated Note established in or under this   Indenture.   The Trustee will promptly notify the Company and the Registrar (if other than itself) in   writing of the Subordinated Notes selected for redemption and, in the case of any Subordinated   Notes selected for partial redemption, the principal amount thereof to be redeemed.   For all purposes of this Indenture, unless the context otherwise requires, all provisions   relating to the redemption of Subordinated Notes will relate, in the case of any Subordinated Notes   redeemed or to be redeemed only in part, to the portion of the principal of such Subordinated Notes   which has been or is to be redeemed.   Section 1004 Notice of Redemption.   Notice of redemption will be given in the manner provided in Section 105, not less than 30   nor more than 60 days prior to the Redemption Date to the Holders of Subordinated Notes to be   redeemed.  Failure to give notice by mailing in the manner herein provided to the Holder of any   Subordinated Notes designated for redemption as a whole or in part, or any defect in the notice to   any such Holder, will not affect the validity of the proceedings for the redemption of any other   Subordinated Notes or portions thereof.   Any notice that is mailed to the Holder of any Subordinated Notes in the manner herein   provided will be conclusively presumed to have been duly given, whether or not such Holder   receives the notice.   All notices of redemption will state:    the Redemption Date,    the Redemption Price,    if less than all Outstanding Subordinated Notes are to be redeemed, the   identification (and, in the case of partial redemption, the principal amount) of the particular   Subordinated Note or Subordinated Notes to be redeemed,    that, in case any Subordinated Note is to be redeemed in part only, on and   after the Redemption Date, upon surrender of such Subordinated Note, the Holder of such   Subordinated Note will receive, without charge, a new Subordinated Note or Subordinated Notes   of authorized denominations for the principal amount thereof remaining unredeemed,     

 

   57    that, on the Redemption Date, the Redemption Price will become due and   payable upon each such Subordinated Note or portion thereof to be redeemed, together (if   applicable) with accrued and unpaid interest and Additional Interest, if any, thereon (subject, if   applicable, to the provisos to the first paragraph of Section 1006), and, if applicable, that interest   thereon will cease to accrue on and after said date,     the place or places where such Subordinated Notes are to be surrendered for   payment of the Redemption Price and any accrued interest pertaining thereto, and    the authority for such redemption.   The notice of redemption may include the CUSIP number reference numbers of such   Subordinated Notes, if any (or any other numbers used by a Depositary to identify such   Subordinated Notes).   Notice of redemption of Subordinated Notes to be redeemed at the election of the Company   will be given by the Company or, at the Company’s request delivered at least 10 days before the   date such notice is to be given (unless a shorter period will be acceptable to the Trustee), by the   Trustee in the name and at the expense of the Company.   Section 1005 Deposit of Redemption Price.   On or prior to 11:00 a.m., Houston, Texas time, on any Redemption Date, the Company   will deposit, with respect to the Subordinated Notes called for redemption in accordance with   Section 1004, with the Trustee or with a Paying Agent (or, if the Company is acting as its own   Paying Agent, segregate and hold in trust as provided in Section 903) an amount sufficient to pay   the Redemption Price of, and (except if the Redemption Date will be an Interest Payment Date)   any accrued interest on, all such Subordinated Notes or portions thereof which are to be redeemed   on that date.   Section 1006  Subordinated Notes Payable on Redemption Date.   Notice of redemption having been given as provided above, the Subordinated Notes so to   be redeemed will, on the Redemption Date, become due and payable at the Redemption Price   therein specified, together with accrued and unpaid interest, if any, thereon and from and after such   date (unless the Company will default in the payment of the Redemption Price and accrued interest,   if any) such Subordinated Notes will cease to bear interest. Upon surrender of any such   Subordinated Note for redemption in accordance with said notice, such Subordinated Note will be   paid by the Company at the Redemption Price, together with any accrued and unpaid interest   thereon to but excluding the Redemption Date; provided, however, that installments of interest on   Subordinated Notes whose Stated Maturity is on or prior to the Redemption Date will be payable   to the Holders of such Subordinated Notes registered as such at the close of business on the Regular   Record Dates therefor according to their terms and the provisions of Section 210.   If any Subordinated Note called for redemption will not be so paid upon surrender thereof   for redemption, the principal, until paid, will bear interest from the Redemption Date at the rate   prescribed therefor in the Subordinated Note or, if no rate is prescribed therefor in the Subordinated   Note, at the rate of interest, if any, borne by such Subordinated Note.     

 

   58   Section 1007  Subordinated Notes Redeemed in Part.   Any Subordinated Note which is to be redeemed only in part will be surrendered at any   office or agency for such Subordinated Note (with, if the Company or the Trustee so requires, due   endorsement by, or a written instrument of transfer in form satisfactory to the Company and the   Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the   Company will execute and the Trustee will authenticate and deliver to the Holder of such   Subordinated Note without service charge, a new Subordinated Note or Subordinated Notes,   containing identical terms and provisions, of any authorized denomination as requested by such   Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the   principal of the Subordinated Note so surrendered. If a Subordinated Note in global form is so   surrendered, the Company will execute, and the Trustee will authenticate and deliver to the   Depositary for such Subordinated Note in global form as will be specified in the Company Order   with respect thereto to the Trustee, without service charge, a new Subordinated Note in global   form in a denomination equal to and in exchange for the unredeemed portion of the principal of   the Subordinated Note in global form so surrendered.   Upon surrender of a Subordinated Note that is redeemed in part, the Company will issue   and the Trustee will authenticate for the Holder at the expense of the Company a new Subordinated   Note equal in principal amount to the unredeemed portion of the Note surrendered representing   the same indebtedness to the extent not redeemed.  Notwithstanding anything in this Indenture to   the contrary, only a Company Order and not an Opinion of Counsel or an Officers’ Certificate of   the Company is required for the Trustee to authenticate such new Subordinated Note.   ARTICLE XI.   SUBORDINATION OF SECURITIES   Section 1101 Agreement to Subordinate.   The Company, for itself, its successors and assigns, covenants and agrees, and each Holder   of Subordinated Notes by the Holder’s acceptance thereof, likewise covenants and agrees, that the   payment of the principal of and interest on each and all of the Subordinated Notes is and will be   expressly subordinated in right of payment to the prior payment in full of all Senior Indebtedness.   Section 1102 Distribution of Assets.    Upon any distribution of assets of the Company upon any termination,   winding up, liquidation or reorganization of the Company, whether in bankruptcy, insolvency,   reorganization or receivership proceedings or upon an assignment for the benefit of creditors or   any other marshalling of the assets and liabilities of the Company or otherwise (subject to the   power of a court of competent jurisdiction to make other equitable provision reflecting the rights   conferred upon the Senior Indebtedness and the holders thereof with respect to the Subordinated   Notes and the Holders thereof by a lawful plan of reorganization under applicable bankruptcy law):   (a) the holders of all Senior Indebtedness will first be entitled to receive   payment in full in accordance with the terms of such Senior Indebtedness of the principal thereof,   premium, if any, and the interest due thereon (including interest accruing subsequent to the   commencement of any proceeding for the bankruptcy or reorganization of the Company under any     

 

   59   applicable bankruptcy, insolvency or similar law now or hereafter in effect) before the Holders of   the Subordinated Notes are entitled to receive any payment upon the principal of or interest on   indebtedness evidenced by the Subordinated Notes;   (b) any payment or distribution of assets of the Company of any kind or   character, whether in cash, property or securities, to which the Holders would be entitled except   for the provisions of this Article XI, including any such payment or distribution that may be   payable or deliverable by reason of the payment of any other indebtedness of the Company being   subordinated to the payment of the Subordinated Notes, will be paid by the liquidating trustee or   agent or other Person making such payment or distribution, whether a trustee in bankruptcy, a   receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness or their   representative or representatives or to the trustee or trustees under any indenture under which any   instruments evidencing any of such Senior Indebtedness may have been issued, in accordance with   the priorities then existing among holders of Senior Indebtedness for payment of the aggregate   amounts remaining unpaid on account of the principal, premium, if any, and interest (including   interest accruing subsequent to the commencement of any proceeding for the bankruptcy or   reorganization of the Company under any applicable bankruptcy, insolvency or similar law now   or hereafter in effect) on the Senior Indebtedness held or represented by each, to the extent   necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect   to any concurrent payment or distribution to the holders of such Senior Indebtedness; it being   understood that if the Holders fail to file a proper claim in the form required by any proceeding   referred to in this Section 1102(1)(b) prior to 30 days before the expiration of the time to file such   claim or claims, then the holders of Senior Indebtedness are hereby authorized to file an   appropriate claim or claims for and on behalf of the Holders, in the form required in any such   proceeding; and   (c) 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, including any such payment or distribution that may be payable or deliverable by reason   of the payment of any other indebtedness of the Company being subordinate to the payment of the   Subordinated Notes will be received by the Trustee or the Holders before all Senior Indebtedness   is paid in full, such payment or distribution will be paid over to the trustee in bankruptcy, receiver,   liquidating trustee, custodian, assignee, agent or other Person making payment of assets of the   Company for all Senior Indebtedness remaining unpaid until all such Senior Indebtedness will   have been paid in full, after giving effect to any concurrent payment or distribution to the holders   of such Senior Indebtedness.    Subject to the payment in full of all Senior Indebtedness, the Holders will   be subrogated to the rights of the holders of Senior Indebtedness to receive payments or   distributions of cash, property or securities of the Company applicable to the Senior Indebtedness   until the principal of and interest on the Subordinated Notes will be paid in full and no such   payments or distributions to holders of such Senior Indebtedness to which the Holders would be   entitled except for the provisions hereof of cash, property or securities otherwise distributable to   the holders of Senior Indebtedness will, as between the Company, its creditors, other than the   holders of Senior Indebtedness, and the Holders, be deemed to be a payment by the Company to   or on account of the Senior Indebtedness. It is understood that the provisions of this Article XI are   intended solely for the purpose of defining the relative rights of the Holders of the Subordinated     

 

   60   Notes, on the one hand, and the holders of Senior Indebtedness, on the other hand. Nothing   contained in this Article XI or elsewhere in this Indenture or any supplemental indenture issued in   accordance with Article VIII of this Indenture or in the Subordinated Notes is intended to or will   impair, as between the Company, its creditors, other than the holders of Senior Indebtedness, and   the Holders, the obligation of the Company, which is unconditional and absolute, to pay to the   Holders the principal of and interest on the Subordinated Notes as and when the same will become   due and payable in accordance with their terms or to affect the relative rights of the Holders and   creditors of the Company, other than the holders of the Senior Indebtedness, nor, except as   otherwise expressly provided in this Indenture and the Subordinated Notes with respect to the   limitation on the rights of the Trustee and the Holders, to accelerate the maturity of the   Subordinated Notes and pursue remedies upon such an acceleration, will anything herein or in the   Subordinated Notes prevent the Trustee or any Holder from exercising all remedies otherwise   permitted by applicable law upon any Event of Default under the Indenture occurring, subject to   the rights, if any, under this Article XI of the holders of 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 XI, the Trustee and the   Holders will be entitled to rely upon any order or decree of a court of competent jurisdiction in   which such termination, winding up, liquidation or reorganization proceeding is pending or upon   a certificate of the liquidating trustee or agent or other Person making any distribution to the   Trustee or to the Holders for the purpose of ascertaining the Persons entitled to participate in such   distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the   amount hereof or payable thereon, the amount or amounts paid or distributed thereon and all other   facts pertinent thereto or to this Article XI. In the absence of any such liquidating trustee, agent or   other person, the Trustee will be entitled to rely upon a written notice by a Person representing   itself to be a holder of Senior Indebtedness (or a trustee or representative on behalf of such holder)   as evidence that such Person is a holder of Senior Indebtedness (or is such a trustee or   representative). If the Trustee determines, in good faith, that further evidence is required with   respect to the right of any Person, as a holder of Senior Indebtedness, to participate in any payment   or distribution in accordance with this Article XI, the Trustee may request such Person to furnish   evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held   by such Person, as to the extent to which such Person is entitled to participation in such payment   or distribution, and as to other facts pertinent to the rights of such Person under this Article XI,   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.   With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to   observe only such of its covenants and obligations as are specifically set forth in this Indenture,   and no implied covenants or obligations with respect to the holders of Senior Indebtedness will be   read into this Indenture against the Trustee. The Trustee, however, will not be deemed to owe any   fiduciary duty to the holders of Senior Indebtedness by reason of the execution of this Indenture,   or any other supplemental indenture entered into in accordance with Article VIII of this Indenture,   and will not be liable to any such holders if it will mistakenly pay over or distribute to or on behalf   of the Holders or the Company moneys or assets to which any holders of Senior Indebtedness will   be entitled by virtue of this Article XI or otherwise.     

 

   61   Section 1103 Default With Respect to Senior Indebtedness.   In the event and during the continuation of any default in the payment of principal of, or   premium, if any, or interest on, any Senior Indebtedness, beyond any applicable grace period, or   if any event of default with respect to any Senior Indebtedness will have occurred and be   continuing, or would occur as a result of the payment referred to hereinafter, permitting the holders   of such Senior Indebtedness (or a trustee on behalf of the holders thereof) to accelerate the maturity   thereof, then, unless and until such default or event of default will have been cured or waived or   will have ceased to exist, no payment or principal of or interest on the Subordinated Notes, or in   respect of any retirement, purchase or other acquisition of any of the Subordinated Notes, will be   made by the Company.   Section 1104 No Impairment.   Nothing contained in this Indenture, any other supplemental indenture entered into in   accordance with Article VIII of this Indenture, or in any of the Subordinated Notes will: (i) impair,   as between the Company and the Holders, the obligations of the Company, to make, or prevent the   Company from making, at any time except as provided in Section 1102 and Section 1103,   payments of principal of, or interest (including interest accruing subsequent to the commencement   of any proceeding for the bankruptcy or reorganization of the Company under any applicable   bankruptcy, insolvency, or similar law now or hereafter in effect) on, the Subordinated Notes, as   and when the same will become due and payable in accordance with the terms of the Subordinated   Notes; (ii) affect the relative rights of the Holders and creditors of the Company other than the   holders of the Senior Indebtedness; (iii) except as otherwise expressly provided in this Indenture   and the Subordinated Notes with respect to the limitation on the rights of the Trustee and the   Holders, to accelerate the maturity of the Subordinated Notes and pursue remedies upon such an   acceleration, prevent the Holder of any Subordinated Notes or the Trustee from exercising all   remedies otherwise permitted by applicable law upon default thereunder, subject to the rights, if   any, under this Article XI of the holders of Senior Indebtedness in respect of cash, property or   securities of the Company received upon the exercise of such remedy; or (iv) prevent the   application by the Trustee or any Paying Agent of any moneys deposited with it hereunder to the   payment of or on account of the principal of, or interest on, the Subordinated Notes or prevent the   receipt by the Trustee or any Paying Agent of such moneys, if, prior to the third Business Day   prior to such deposit, the Trustee or such Paying Agent did not have written notice of any event   prohibiting the making of such deposit by the Company.   Section 1105 Effectuation of Subordination Provisions.   Each Holder by his acceptance of any Notes authorizes and expressly directs the Trustee   on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the   Subordination Provisions, and appoints the Trustee such Holder’s attorney-in-fact for such   purposes, including, in the event of any termination, winding up, liquidation or reorganization of   the Company (whether in bankruptcy, insolvency, receivership, reorganization or similar   proceedings or upon an assignment for the benefit of creditors by the Company, a marshalling of   the assets and liabilities of the Company or otherwise) tending toward the liquidation of the   property and assets of the Company, the filing of a claim for the unpaid balance of the Subordinated   Notes in the form required in those proceedings.     

 

   62   Section 1106 Notice to Trustee.   The Company will give prompt written notice to the Trustee of any fact known to the   Company that would prohibit the Company from making any payment to or by the Trustee in   respect of the Subordinated Notes in accordance with the provisions of this Article XI. The Trustee   will not be charged with the knowledge of the existence of any default or event of default with   respect to any Senior Indebtedness or of any other facts that would prohibit the making of any   payment to or by the Trustee unless and until the Trustee will have received notice in writing at its   Corporate Trust Office to that effect signed by an Authorized Officer, or by a holder of Senior   Indebtedness or a trustee or agent thereof; and prior to the receipt of any such written notice, the   Trustee will, subject to Article V of this Indenture, be entitled to assume that no such facts exist;   provided that, if the Trustee will not have received the notice provided for in this Section 1106 at   least two Business Days prior to the date upon which, by the terms of the Indenture, any monies   will become payable for any purpose (including, without limitation, the payment of the principal   of or interest on any Subordinated Note), then, notwithstanding anything herein to the contrary,   the Trustee will have full power and authority to receive any monies from the Company and to   apply the same to the purpose for which they were received, and will not be affected by any notice   to the contrary that may be received by it on or after such prior date except for an acceleration of   the Subordinated Notes prior to such application. The foregoing will not apply if the Paying Agent   is the Company. The Trustee will be entitled to rely on the delivery to it of a written notice by a   Person representing himself or itself to be a holder of any Senior Indebtedness (or a trustee on   behalf of, or agent of, such holder) to establish that such notice has been given by a holder of such   Senior Indebtedness or a trustee or agent on behalf of any such holder.   In the event that the Trustee determines in good faith that any evidence is required with   respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment   or distribution in accordance with this Article XI, the Trustee may request such Person to furnish   evidence to the reasonable satisfaction of the Trustee as to the amount of 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 XI and, if   such evidence is not furnished to the Trustee, the Trustee may defer any payment to such Person   pending such evidence being furnished to the Trustee or a judicial determination that such Person   has the right to receive such payment.   Section 1107 Trustee Knowledge of Senior Indebtedness.   Notwithstanding the provisions of this Article XI or any other provisions of this Indenture   or any other supplemental indenture issued in accordance with Article VIII of this Indenture,   neither the Trustee nor any Paying Agent will be charged with knowledge of the existence of any   Senior Indebtedness or of any event that would prohibit the making of any payment or moneys to   or by the Trustee or such Paying Agent, unless and until a Responsible Officer of the Trustee or   such Paying Agent will have received written notice thereof from the Company or from the holder   of any Senior Indebtedness or from the representative of any such holder.     

 

   63   Section 1108 Senior Indebtedness to Trustee.   The Trustee will be entitled to all of the rights set forth in this Article XI in respect of any   Senior Indebtedness at any time held by it in its individual capacity to the same extent as any other   holder of such Senior Indebtedness, and nothing in this Indenture or any other supplemental   indenture issued in accordance with Article VIII of this Indenture will be construed to deprive the   Trustee of any of its rights as such holder.   Section 1109 Subordination Not Applicable to Trustee Compensation.   Nothing contained in this Article XI will apply to the claims of, or payments to, the Trustee   under Section 507 of this Indenture.         

 

64   The Trustee hereby accepts the trusts in this Indenture upon the terms and conditions set   forth herein.    IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly signed   as of the date first written above.    FIRST NBC BANK HOLDING COMPANY   By:   Ashton J. Ryan, Jr.   Chief Executive Officer and President   U.S. BANK NATIONAL ASSOCIATION,   As Trustee   By:   Name:   Title:     

 

 A-1-1    EXHIBIT A-1   (FORM OF DEFINITIVE SUBORDINATED NOTE)     [IF ISSUED AS RESTRICTED SUBORDINATED NOTE:   “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN   REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR   UNDER ANY APPLICABLE STATE SECURITIES LAW.  THESE SECURITIES MAY NOT   BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE   OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER   THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A   TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE   SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES   LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL   REASONABLY SATISFACTORY TO THE COMPANY, IF REQUESTED, OR (II) UNLESS   SOLD IN ACCORDANCE WITH RULE 144 UNDER SAID ACT.”]   THIS SECURITY AND THE OBLIGATIONS OF THE COMPANY (AS DEFINED HEREIN)   AS EVIDENCED HEREBY (1) ARE NOT DEPOSITS WITH OR HELD BY THE COMPANY   AND ARE NOT INSURED OR GUARANTEED BY ANY FEDERAL AGENCY OR   INSTRUMENTALITY, INCLUDING, WITHOUT LIMITATION, THE FEDERAL DEPOSIT   INSURANCE CORPORATION AND (2) ARE SUBORDINATE IN THE RIGHT OF   PAYMENT TO ALL SENIOR INDEBTEDNESS (AS DEFINED IN THE INDENTURE   IDENTIFIED HEREIN).   CERTAIN ERISA CONSIDERATIONS:    THE HOLDER OF THIS SECURITY, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE   HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN   EMPLOYEE BENEFIT PLAN, 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   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   ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR   SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING.   ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST HEREIN WILL   BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF   THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO   WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A     

 

A-1-2   TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE   BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN   ASSETS” OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH   PURCHASE, OR (ii) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A   PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF   THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER   APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.    ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF ANY   OF THE SECURITIES SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR   TO ACQUIRING SUCH SECURITIES.    No.   CUSIP 32115D AA4         FIRST NBC BANK HOLDING COMPANY    5.75% SUBORDINATED NOTE DUE 2025   1. Indenture; Holders.  This note is one of a duly authorized issue of notes of First   NBC Bank Holding Company, a Louisiana corporation (the “Company”), designated as the   “5.75% Subordinated Notes due 2025” (the “Subordinated Notes”) in an aggregate principal   amount of $60,000,000 and initially issued on February 18, 2015.  The Company has issued this   Subordinated Note under that certain Indenture dated as of February 18, 2015, as the same may be   amended or supplemented from time to time (“Indenture”), between the Company and U.S. Bank   National Association, as Trustee.  All capitalized terms not otherwise defined herein this   Subordinated Note will have the meanings assigned to them in the Indenture.  The terms of this   Subordinated Note includes those stated in the Indenture and those made part of the Indenture by   reference to the Trust Indenture Act.  This Subordinated Note is subject to all such terms, and the   Holder (as defined below) is referred to the Indenture and the Trust Indenture Act for a statement   of such terms. To the extent any provision of this Subordinated Note irreconcilably conflicts with   the express provisions of the Indenture, the provisions of the Indenture will govern and be   controlling.   2. Payment.  The Company, for value received, promises to pay to                         , or   registered assigns (the “Holder”), the principal sum of                          Dollars (U.S.) ($        ), plus   accrued but unpaid interest on February 18, 2025 (“Stated Maturity”) and to pay interest thereon   at the rate of 5.75% per annum from February 18, 2015, or from the most recent Interest Payment   Date to which interest has been paid or duly provided for, semiannually in arrears on February 18   and August 18 of each year (each, an “Interest Payment Date”), commencing August 18, 2015,   until the principal hereof is paid or made available for payment, with such interest calculated on   the basis of a 360-day year consisting of twelve 30-day months and the number of days elapsed in   any partial month.   Any payment of principal of or interest on this Subordinated Note that would otherwise   become due and payable on a day which is not a Business Day will become due and payable on   the next succeeding Business Day, with the same force and effect as if made on the date for   payment of such principal or interest, and no interest will accrue in respect of such payment for   the period after such day.      

 

A-1-3   The Company will pay interest on this Subordinated Note to the Person who is the   registered Holder at the close of business on the first calendar day of the month in which the   Interest Payment Date occurs, except as provided in Section 210 of the Indenture with respect to   Defaulted Interest. This Subordinated Note will be payable as to principal and interest at the office   or agency of the Paying Agent, or, at the option of the Company, payment of interest may be made   by check mailed to the Holder at its address set forth in the Subordinated Note Register or by wire   transfer to an account appropriately designated by the Person entitled to payment; provided, that   the Paying Agent will have received written notice of such account designation at least five   Business Days prior to the date of such payment (subject to surrender of this Subordinated Note   in the case of a payment of interest at Maturity).   3. Paying Agent and Registrar.  U.S. Bank National Association, the Trustee   (“Trustee”) under the Indenture, will act as the initial Paying Agent and Registrar through its   offices presently located at 5555 San Felipe, Suite 1150, Houston, Texas 77056.  The Company   may change any Paying Agent or Registrar without notice to any Holder.  The Company or any of   its Subsidiaries may act in any such capacity.   4. Subordination.  The indebtedness of the Company evidenced by this Subordinated   Note, including the principal thereof and interest thereon, is, to the extent and in the manner set   forth in the Indenture, subordinate and junior in right of payment to obligations of the Company   constituting the Senior Indebtedness (as defined in the Indenture) on the terms and subject to the   terms and conditions as provided and set forth in Article XII of the Indenture and will rank pari   passu in right of payment with all other Subordinated Notes.  Holder, by the acceptance of this   Subordinated Note, agrees to and will be bound by such provisions of the Indenture and authorizes   and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to   effectuate the subordination so provided.   5. Redemption.  The Company may, at any time or from time to time on or after   November 18, 2024, redeem this Subordinated Note, in whole or in part, without premium or   penalty, but in all cases in a principal amount with integral multiples of $1,000.  In addition, the   Company may redeem all, but not a portion of the Subordinated Notes, at any time upon the   occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event.  Any   redemption with respect to this Subordinated Note will be subject to any required regulatory   approvals.  This Subordinated Note is not subject to redemption at the option of the Holder.  The   Redemption Price with respect to any redemption permitted under this Indenture will be equal to   100% of the principal amount of this Subordinated Note, or portion thereof, to be redeemed, plus   accrued but unpaid interest and Additional Interest, if any, thereon to, but excluding, the   Redemption Date.   6. Events of Default; Acceleration.  An “Event of Default” means any one of the   events described in Section 401 of the Indenture.  If an Event of Default described in Section   401(1) or Section 401(2) of the Indenture occurs, then the principal amount of all of the   Outstanding Subordinated Notes, and accrued and unpaid interest, if any, on all Outstanding   Subordinated Notes will become and be immediately due and payable without any declaration or   other act on the part of the Trustee or the Holder, and the Company waives demand, presentment   for payment, notice of nonpayment, notice of protest, and all other notices.  Notwithstanding the   foregoing, because the Company will treat the Subordinated Notes as tier 2 capital (or its then     

 

A-1-4   equivalent if the Company were subject to such capital requirement) for purposes of capital   adequacy guidelines of the Federal Reserve Board as then in effect and applicable to the Company,   upon the occurrence of an Event of Default other than an Event of Default described in Section   401(1) or Section 401(2) of the Indenture, neither the Trustee nor the Holder may accelerate the   Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest   on, the Subordinated Notes, immediately due and payable.  If any Event of Default occurs and is   continuing, the Trustee may also pursue any other available remedy to collect the payment of   principal of, and interest on, the Subordinated Notes or to enforce the performance of any provision   of the Subordinated Notes or the Indenture.     7. Failure to Make Payments.  If the Company fails to make any payment of interest   on this Subordinated Note when such interest becomes due and payable and such default continues   for a period of 30 days, or if the Company fails to make any payment of the principal of this   Subordinated Note when such principal becomes due and payable, the Company will, upon   demand of the Trustee, pay to the Trustee, for the benefit of the Holder, the whole amount then   due and payable with respect to this Subordinated Note, with interest upon the overdue principal,   any premium and, to the extent permitted by applicable law, upon any overdue installments of   interest at the rate or respective rates, as the case may be, provided for or with respect to this   Subordinated Note or, if no such rate or rates are so provided, at the rate or respective rates, as the   case may be, of interest borne by this Subordinated Note.   Upon the occurrence of a failure by the Company to make any required payment of   principal or interest on this Subordinated Note, the Company may not 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, make any payment of principal or interest or premium, if any,   on or repay, repurchase or redeem any debt securities of the Company that rank equal with or   junior to this Subordinated Note, or make any payments under any guarantee that ranks equal with   or junior to this Subordinated Note, other than: (i) any dividends or distributions in shares of, or   options, warrants or rights to subscribe for or purchase shares of, any class of Company’s common   stock; (ii) any declaration of a dividend in connection with the implementation of a shareholders’   rights plan, or the issuance of stock under any such plan in the future, or the redemption or   repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of Company’s   capital stock or the exchange or conversion of one class or series of Company’s capital stock for   another class or series of Company’s capital stock; (iv) the purchase of fractional interests in shares   of Company’s capital stock in accordance with the conversion or exchange provisions of such   capital stock or the security being converted or exchanged; or (v) purchases of any class of   Company’s common stock related to the issuance of common stock or rights under any of benefit   plans for Company’s directors, officers or employees or any of Company’s dividend reinvestment   plans.   8. Denominations, Transfer, Exchange. The Subordinated Notes are issuable only in   registered form without interest coupons in minimum denominations of $1,000 and integral   multiples of $1,000 in excess thereof.  The transfer of this Subordinated Note may be registered   and this Subordinated Note may be exchanged as provided in the Indenture. The Registrar may   require the Holder, among other things, to furnish appropriate endorsements and transfer   documents and the Company may require the Holder to pay any taxes and fees required by law or   permitted by the Indenture.       

 

A-1-5   9. Charges and Transfer Taxes.  No service charge will be made for any registration   of transfer or exchange of this Subordinated Note, or any redemption or repayment of this   Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of   securities or property, but the Company may require payment of a sum sufficient to pay all taxes,   assessments or other governmental charges that may be imposed in connection with the transfer or   exchange of this Subordinated Note from the Holder requesting such transfer or exchange.   10. Persons Deemed Owners. The Company and the Trustee and any agent of the   Company or the Trustee may treat the Person in whose name this Subordinated Note is registered   as the owner hereof for all purposes, whether or not this Subordinated Note is overdue, and neither   the Company, the Trustee nor any such agent will be affected by notice to the contrary.   11. Amendments; Waivers.  The Indenture permits, with certain exceptions as therein   provided, the amendment thereof and the modification of the rights and obligations of the   Company and the rights of the Holders of the Subordinated Notes at any time by the Company and   the Trustee with the consent of the holders of a majority in principal amount of the then   Outstanding Subordinated Notes.  The Indenture also contains provisions permitting the Holders   of specified percentages in principal amount of the then Outstanding Subordinated Notes, on   behalf of the Holders of all Subordinated Notes, to waive certain past defaults under the Indenture   and their consequences.  Any such consent or waiver by the holder of this Subordinated Note will   be conclusive and binding upon such holder and upon all future holders of this Subordinated Note   and of any Subordinated Note issued upon the registration of transfer hereof or in exchange herefor   or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated   Note.   12. No Impairment.  No reference herein to the Indenture and no provision of this   Subordinated Note or of the Indenture will alter or impair the obligation of the Company, which   is absolute and unconditional, to pay the principal of and interest (if any) and Additional Interest   on this Subordinated Note at the times, place and rate as herein prescribed.   13. Sinking Fund; Convertibility.  This Subordinated Note is not entitled to the benefit   of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the   equity securities, other securities or assets of the Company or any Subsidiary.   14. No Recourse Against Others.  No recourse under or upon any obligation, covenant   or agreement contained in the Indenture or in this Subordinated Note, or for any claim based   thereon or otherwise in respect thereof, will be had against any past, present or future shareholder,   employee, officer, or director, as such, of the Company or of any predecessor or successor, either   directly or through the Company or any predecessor or successor, under any rule of law, statute or   constitutional provision or by the enforcement of any assessment or by any legal or equitable   proceeding or otherwise, all such liability being expressly waived and released by the acceptance   of this Subordinated Note by the Holder and as part of the consideration for the issuance of this   Subordinated Note.   15.  Authentication. This Subordinated Note will not be valid until authenticated by the   manual signature of the Trustee or an Authenticating Agent.     

 

A-1-6   16. Abbreviations. Customary abbreviations may be used in the name of a Holder or   an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),   JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (=   custodian), and U/G/M/A (= Uniform Gifts to Minors Act).  Additional abbreviations may also be   used though not in the above list.   17. Available Information. The Company will furnish to the Holder upon written   request and without charge a copy of the Indenture. Requests may be made to: First NBC Bank   Holding Company, 210 Baronne Street, New Orleans, LA  70112, Attn:  William M. Roohi.   18. Governing Law. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A   CONTRACT MADE UNDER THE LAWS OF THE STATE OF TEXAS AND WILL BE   GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE   STATE OF TEXAS WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.     

 

A-1-7   IN WITNESS WHEREOF, the undersigned has caused this Subordinated Note to be duly   executed.    Dated:       FIRST NBC BANK HOLDING COMPANY               By:                 Name:                Title:              TRUSTEE’S CERTIFICATE OF AUTHENTICATION   This is one of the Subordinated Notes of First NBC Bank Holding Company referred to in   the within-mentioned Indenture:   U.S. BANK NATIONAL ASSOCIATION   as Trustee      By:           Name:          Title:              Dated:                   

 

A-1-8   ASSIGNMENT FORM    To assign this Subordinated Note, fill in the form below:  (I) or (we) assign and transfer this   Subordinated Note to:                              (Print or type assignee’s name, address and zip code)                             (Insert assignee’s social security or tax I.D. No.)       and irrevocably appoint      agent to transfer this Subordinated Note on   the books of the Company.  The agent may substitute another to act for him.       Date:        Your signature:         (Sign exactly as your name appears on the face of   this Subordinated Note)      Tax Identification No:              Signature Guarantee:               (Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings   and loan associations and credit unions with membership in an approved signature guarantee   medallion program), pursuant to Exchange Act Rule 17Ad-15).   [IF ISSUED AS RESTRICTED SUBORDINATED NOTE:   The undersigned certifies that it [is / is not] an Affiliate of the Company and that, to its   knowledge, the proposed transferee [is / is not] an Affiliate of the Company.   In connection with any transfer or exchange of this Subordinated Note occurring prior to   the date that is one year after the later of the date of original issuance of this Subordinated Note   and the last date, if any, on which this Subordinated Note was owned by the Company or any   Affiliate of the Company, the undersigned confirms that this Subordinated Note is being:   CHECK ONE BOX BELOW:       (1) acquired for the undersigned’s own account, without transfer;     (2) transferred to the Company;     (3)  transferred in accordance and in compliance with Rule 144A under the     Securities Act of 1933, as amended (the “Securities Act”);        (4) transferred under an effective registration statement under the Securities Act;      

 

A-1-9    (5) transferred in accordance with and in compliance with Regulation S under    the Securities Act;       (6) transferred to an institutional “accredited investor” (as defined in Rule    501(a)(1), (2), (3) or (7) under the Securities Act) or an “accredited investor” (as   defined in Rule 501(a)(4) under the Securities Act), that has furnished a signed   letter containing certain representations and agreements; or       (7) transferred in accordance with  another available exemption from the registration      requirements of the Securities Act of 1933, as amended.       Unless one of the boxes is checked, the Paying Agent will refuse to register this Subordinated Note   in the name of any person other than the registered Holder thereof; provided, however, that if box   (5), (6) or (7) is checked, the Paying Agent may require, prior to registering any such transfer of   this Subordinated Note, in its sole discretion, such legal opinions, certifications and other   information as the Paying Agent may reasonably request to confirm that such transfer is being   made pursuant to an exemption from, or in a transaction not subject to, the registration   requirements of the Securities Act such as the exemption provided by Rule 144 under such Act.   Signature:                   Signature Guarantee:               (Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings   and loan associations and credit unions with membership in an approved signature guarantee   medallion program), pursuant to Exchange Act Rule 17Ad-15).   TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED.    The undersigned represents and warrants that it is purchasing this Subordinated Note for   its own account or an account with respect to which it exercises sole investment discretion and that   it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under   the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance   on Rule 144A and acknowledges that it has received such information regarding the Issuer as the   undersigned has requested pursuant to Rule 144A or has determined not to request such   information and that it is aware that the transferor is relying upon the undersigned’s foregoing   representations in order to claim the exemption from registration provided by Rule 144A.    Date:        Signature:                   ]     

 

 A-2-1    EXHIBIT A-2   (FORM OF GLOBAL SUBORDINATED NOTE)     [IF ISSUED AS RESTRICTED SUBORDINATED NOTE:   “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN   REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR   UNDER ANY APPLICABLE STATE SECURITIES LAW.  THESE SECURITIES MAY NOT   BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE   OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER   THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A   TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE   SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES   LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL   REASONABLY SATISFACTORY TO THE COMPANY, IF REQUESTED, OR (II) UNLESS   SOLD IN ACCORDANCE WITH RULE 144 UNDER SAID ACT.”]   THIS SUBORDINATED NOTE IS A GLOBAL SUBORDINATED NOTE WITHIN THE   MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED   IN THE NAME OF CEDE & CO AS NOMINEE OF THE DEPOSITORY TRUST COMPANY   (“DTC”) OR A NOMINEE OF DTC.  THIS SUBORDINATED NOTE IS EXCHANGEABLE   FOR SUBORDINATED NOTES 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 SUBORDINATED NOTE (OTHER   THAN A TRANSFER OF THIS SUBORDINATED NOTE 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 SPECIFIED IN   THE INDENTURE.   UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED   REPRESENTATIVE OF DTC TO THE COMPANY OR ITS AGENT FOR REGISTRATION   OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY SUBORDINATED NOTE 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   HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED   BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR   OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS   WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS   AN INTEREST HEREIN.   TRANSFERS OF THIS SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS IN   WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR A SUCCESSOR THEREOF OR   SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS   SUBORDINATED NOTE WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE   WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE   REVERSE HEREOF.     

 

A-2-2   THIS SECURITY AND THE OBLIGATIONS OF THE COMPANY (AS DEFINED HEREIN)   AS EVIDENCED HEREBY (1) ARE NOT DEPOSITS WITH OR HELD BY THE COMPANY   AND ARE NOT INSURED OR GUARANTEED BY ANY FEDERAL AGENCY OR   INSTRUMENTALITY, INCLUDING, WITHOUT LIMITATION, THE FEDERAL DEPOSIT   INSURANCE CORPORATION AND (2) ARE SUBORDINATE IN THE RIGHT OF   PAYMENT TO ALL SENIOR INDEBTEDNESS (AS DEFINED IN THE INDENTURE   IDENTIFIED HEREIN).   CERTAIN ERISA CONSIDERATIONS:    THE HOLDER OF THIS SECURITY, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE   HEREOF OR THEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN   EMPLOYEE BENEFIT PLAN, 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   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   ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR   SECTION 4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE AND HOLDING.   ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY INTEREST HEREIN WILL   BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF   THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN TO   WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS APPLICABLE, A   TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE   BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN   ASSETS” OF ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH   PURCHASE, OR (ii) SUCH PURCHASE OR HOLDING WILL NOT RESULT IN A   PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF   THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS NOT AVAILABLE UNDER   APPLICABLE STATUTORY OR ADMINISTRATIVE EXEMPTION.    ANY FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF ANY   OF THE SECURITIES SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR   TO ACQUIRING SUCH SECURITIES.          

 

A-2-3         No.   CUSIP 32115D AA4      FIRST NBC BANK HOLDING COMPANY    5.75% SUBORDINATED NOTE DUE 2025   1. Indenture; Holders.  This note is one of a duly authorized issue of notes of First   NBC Bank Holding Company, a Louisiana corporation (the “Company”) designated as the “5.75%   Subordinated Notes due 2025” (the “Subordinated Notes”) in an aggregate principal amount of   $60,000,000 and initially issued on February 18, 2015.  The Company has issued this Subordinated   Note under that certain Indenture dated as of February 18, 2015, as the same may be amended or   supplemented from time to time (“Indenture”), between the Company and U.S. Bank National   Association, as Trustee.  All capitalized terms not otherwise defined herein this Subordinated Note   will have the meanings assigned to them in the Indenture.  The terms of this Subordinated Note   includes those stated in the Indenture and those made part of the Indenture by reference to the   Trust Indenture Act.  This Subordinated Note is subject to all such terms, and the Holder (as   defined below) is referred to the Indenture and the Trust Indenture Act for a statement of such   terms. To the extent any provision of this Subordinated Note irreconcilably conflicts with the   express provisions of the Indenture, the provisions of the Indenture will govern and be controlling.   2. Payment.  The Company, for value received, promises to pay to Cede & Co. or   registered assigns (“Holder”), the principal sum of                          Dollars (U.S.) ($        ), plus   accrued but unpaid interest on February 18, 2025 (“Stated Maturity”) and to pay interest thereon   at the rate of 5.75% per annum from February 18, 2015, or from the most recent Interest Payment   Date to which interest has been paid or duly provided for, semiannually in arrears on February 18   and August 18 of each year (each, an “Interest Payment Date”), commencing August 18, 2015,   until the principal hereof is paid or made available for payment, with such interest calculated on   the basis of a 360-day year consisting of twelve 30-day months and the number of days elapsed in   any partial month.   Any payment of principal of or interest on this Subordinated Note that would otherwise   become due and payable on a day which is not a Business Day will become due and payable on   the next succeeding Business Day, with the same force and effect as if made on the date for   payment of such principal or interest, and no interest will accrue in respect of such payment for   the period after such day.    The Company will pay interest on this Subordinated Note to the Person who is the   registered Holder at the close of business on the first calendar day of the month in which the   Interest Payment Date occurs, except as provided in Section 210 of the Indenture with respect to   Defaulted Interest. This Subordinated Note will be payable as to principal and interest at the office   or agency of the Paying Agent, or, at the option of the Company, payment of interest may be made   by check mailed to the Holder at its address set forth in the Subordinated Note Register or by wire   transfer to an account appropriately designated by the Person entitled to payment; provided, that   the Paying Agent will have received written notice of such account designation at least five   Business Days prior to the date of such payment (subject to surrender of this Subordinated Note   in the case of a payment of interest at Maturity).     

 

A-2-4   3. Paying Agent and Registrar.  U.S. Bank National Association, the Trustee   (“Trustee”) under the Indenture, will act as the initial Paying Agent and Registrar through its   offices presently located at 5555 San Felipe, Suite 1150, Houston, Texas 77056.  The Company   may change any Paying Agent or Registrar without notice to any Holder.  The Company or any of   its Subsidiaries may act in any such capacity.   4. Subordination.  The indebtedness of the Company evidenced by this Subordinated   Note, including the principal thereof and interest thereon, is, to the extent and in the manner set   forth in the Indenture, subordinate and junior in right of payment to obligations of the Company   constituting the Senior Indebtedness (as defined in the Indenture) on the terms and subject to the   terms and conditions as provided and set forth in Article XII of the Indenture and will rank pari   passu in right of payment with all other Subordinated Notes.  Holder, by the acceptance of this   Subordinated Note, agrees to and will be bound by such provisions of the Indenture and authorizes   and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to   effectuate the subordination so provided.   5. Redemption.  The Company may, at any time or from time to time on or after   November 18, 2024, redeem this Subordinated Note, in whole or in part, without premium or   penalty, but in all cases in a principal amount with integral multiples of $1,000.  In addition, the   Company may redeem all, but not a portion of the Subordinated Notes, at any time upon the   occurrence of a Tier 2 Capital Event, Tax Event or an Investment Company Event.  Any   redemption with respect to this Subordinated Note will be subject to any required regulatory   approvals.  This Subordinated Note is not subject to redemption at the option of the Holder.  The   Redemption Price with respect to any redemption permitted under this Indenture will be equal to   100% of the principal amount of this Subordinated Note, or portion thereof, to be redeemed, plus   accrued but unpaid interest and Additional Interest, if any, thereon to, but excluding, the   Redemption Date.   6. Events of Default; Acceleration.  An “Event of Default” means any one of the   events described in Section 401 of the Indenture.  If an Event of Default described in Section   401(1) or Section 401(2) of the Indenture occurs, then the principal amount of all of the   Outstanding Subordinated Notes, and accrued and unpaid interest, if any, on all Outstanding   Subordinated Notes will become and be immediately due and payable without any declaration or   other act on the part of the Trustee or the Holder, and the Company waives demand, presentment   for payment, notice of nonpayment, notice of protest, and all other notices.  Notwithstanding the   foregoing, because the Company will treat the Subordinated Notes as tier 2 capital (or its then   equivalent if the Company were subject to such capital requirement) for purposes of capital   adequacy guidelines of the Federal Reserve Board as then in effect and applicable to the Company,   upon the occurrence of an Event of Default other than an Event of Default described in Section   401(1) or Section 401(2) of the Indenture, neither the Trustee nor the Holder may accelerate the   Maturity of the Subordinated Notes and make the principal of, and any accrued and unpaid interest   on, the Subordinated Notes, immediately due and payable.  If any Event of Default occurs and is   continuing, the Trustee may also pursue any other available remedy to collect the payment of   principal of, and interest on, the Subordinated Notes or to enforce the performance of any provision   of the Subordinated Notes or the Indenture.       

 

A-2-5   7. Failure to Make Payments.  If the Company fails to make any payment of interest   on this Subordinated Note when such interest becomes due and payable and such default continues   for a period of 30 days, or if the Company fails to make any payment of the principal of this   Subordinated Note when such principal becomes due and payable, the Company will, upon   demand of the Trustee, pay to the Trustee, for the benefit of the Holder, the whole amount then   due and payable with respect to this Subordinated Note, with interest upon the overdue principal,   any premium and, to the extent permitted by applicable law, upon any overdue installments of   interest at the rate or respective rates, as the case may be, provided for or with respect to this   Subordinated Note or, if no such rate or rates are so provided, at the rate or respective rates, as the   case may be, of interest borne by this Subordinated Note.   Upon the occurrence of a failure by the Company to make any required payment of   principal or interest on this Subordinated Note, the Company may not 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, make any payment of principal or interest or premium, if any,   on or repay, repurchase or redeem any debt securities of the Company that rank equal with or   junior to this Subordinated Note, or make any payments under any guarantee that ranks equal with   or junior to this Subordinated Note, other than: (i) any dividends or distributions in shares of, or   options, warrants or rights to subscribe for or purchase shares of, any class of Company’s common   stock; (ii) any declaration of a dividend in connection with the implementation of a shareholders’   rights plan, or the issuance of stock under any such plan in the future, or the redemption or   repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of Company’s   capital stock or the exchange or conversion of one class or series of Company’s capital stock for   another class or series of Company’s capital stock; (iv) the purchase of fractional interests in shares   of Company’s capital stock in accordance with the conversion or exchange provisions of such   capital stock or the security being converted or exchanged; or (v) purchases of any class of   Company’s common stock related to the issuance of common stock or rights under any of benefit   plans for Company’s directors, officers or employees or any of Company’s dividend reinvestment   plans.   8. Denominations, Transfer, Exchange. The Subordinated Notes are issuable only in   registered form without interest coupons in minimum denominations of $1,000 and integral   multiples of $1,000 in excess thereof.  The transfer of this Subordinated Note may be registered   and this Subordinated Note may be exchanged as provided in the Indenture. The Registrar may   require the Holder, among other things, to furnish appropriate endorsements and transfer   documents and the Company may require the Holder to pay any taxes and fees required by law or   permitted by the Indenture.     9. Charges and Transfer Taxes.  No service charge will be made for any registration   of transfer or exchange of this Subordinated Note, or any redemption or repayment of this   Subordinated Note, or any conversion or exchange of this Subordinated Note for other types of   securities or property, but the Company may require payment of a sum sufficient to pay all taxes,   assessments or other governmental charges that may be imposed in connection with the transfer or   exchange of this Subordinated Note from the Holder requesting such transfer or exchange.   10. Persons Deemed Owners. The Company and the Trustee and any agent of the   Company or the Trustee may treat the Person in whose name this Subordinated Note is registered     

 

A-2-6   as the owner hereof for all purposes, whether or not this Subordinated Note is overdue, and neither   the Company, the Trustee nor any such agent will be affected by notice to the contrary.   11. Amendments; Waivers.  The Indenture permits, with certain exceptions as therein   provided, the amendment thereof and the modification of the rights and obligations of the   Company and the rights of the Holders of the Subordinated Notes at any time by the Company and   the Trustee with the consent of the holders of a majority in principal amount of the then   Outstanding Subordinated Notes.  The Indenture also contains provisions permitting the Holders   of specified percentages in principal amount of the then Outstanding Subordinated Notes, on   behalf of the Holders of all Subordinated Notes, to waive certain past defaults under the Indenture   and their consequences.  Any such consent or waiver by the holder of this Subordinated Note will   be conclusive and binding upon such holder and upon all future holders of this Subordinated Note   and of any Subordinated Note issued upon the registration of transfer hereof or in exchange herefor   or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated   Note.   12. No Impairment.  No reference herein to the Indenture and no provision of this   Subordinated Note or of the Indenture will alter or impair the obligation of the Company, which   is absolute and unconditional, to pay the principal of and interest (if any) and Additional Interest   on this Subordinated Note at the times, place and rate as herein prescribed.   13. Sinking Fund; Convertibility.  This Subordinated Note is not entitled to the benefit   of any sinking fund. This Subordinated Note is not convertible into or exchangeable for any of the   equity securities, other securities or assets of the Company or any Subsidiary.   14. No Recourse Against Others.  No recourse under or upon any obligation, covenant   or agreement contained in the Indenture or in this Subordinated Note, or for any claim based   thereon or otherwise in respect thereof, will be had against any past, present or future shareholder,   employee, officer, or director, as such, of the Company or of any predecessor or successor, either   directly or through the Company or any predecessor or successor, under any rule of law, statute or   constitutional provision or by the enforcement of any assessment or by any legal or equitable   proceeding or otherwise, all such liability being expressly waived and released by the acceptance   of this Subordinated Note by the Holder and as part of the consideration for the issuance of this   Subordinated Note.   15.  Authentication. This Subordinated Note will not be valid until authenticated by the   manual signature of the Trustee or an Authenticating Agent.   16. Abbreviations. Customary abbreviations may be used in the name of a Holder or   an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),   JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (=   custodian), and U/G/M/A (= Uniform Gifts to Minors Act).  Additional abbreviations may also be   used though not in the above list.   17. Available Information. The Company will furnish to the Holder upon written   request and without charge a copy of the Indenture. Requests may be made to: First NBC Bank   Holding Company, 210 Baronne Street, New Orleans, LA  70112, Attn:  William M. Roohi.     

 

A-2-7   18. Governing Law. THIS SUBORDINATED NOTE WILL BE DEEMED TO BE A   CONTRACT MADE UNDER THE LAWS OF THE STATE OF TEXAS AND WILL BE   GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE   STATE OF TEXAS WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THEREOF.     

 

A-2-8   IN WITNESS WHEREOF, the undersigned has caused this Subordinated Note to be duly   executed.    Dated:       FIRST NBC BANK HOLDING COMPANY               By:                 Name:                Title:              TRUSTEE’S CERTIFICATE OF AUTHENTICATION   This is one of the Subordinated Notes of First NBC Bank Holding Company referred to in   the within-mentioned Indenture:   U.S. BANK NATIONAL ASSOCIATION   as Trustee      By:           Name:          Title:              Dated:                   

 

A-2-9   ASSIGNMENT FORM    To assign this Subordinated Note, fill in the form below:  (I) or (we) assign and transfer this   Subordinated Note to:                              (Print or type assignee’s name, address and zip code)                            (Insert assignee’s social security or tax I.D. No.)       and irrevocably appoint      agent to transfer this Subordinated Note on   the books of the Company.  The agent may substitute another to act for him.       Date:        Your signature:         (Sign exactly as your name appears on the face of   this Subordinated Note)      Tax Identification No:              Signature Guarantee:               (Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings   and loan associations and credit unions with membership in an approved signature guarantee   medallion program), pursuant to Exchange Act Rule 17Ad-15).   [IF ISSUED AS RESTRICTED SUBORDINATED NOTE:   The undersigned certifies that it [is / is not] an Affiliate of the Company and that, to its   knowledge, the proposed transferee [is / is not] an Affiliate of the Company.   In connection with any transfer or exchange of this Subordinated Note occurring prior to   the date that is one year after the later of the date of original issuance of this Subordinated Note   and the last date, if any, on which this Subordinated Note was owned by the Company or any   Affiliate of the Company, the undersigned confirms that this Subordinated Note is being:   CHECK ONE BOX BELOW:       (1) acquired for the undersigned’s own account, without transfer;     (2) transferred to the Company;     (3)  transferred in accordance and in compliance with Rule 144A under the     Securities Act of 1933, as amended (the “Securities Act”);        (4) transferred under an effective registration statement under the Securities Act;      

 

A-2-10    (5) transferred in accordance with and in compliance with Regulation S under    the Securities Act;       (6) transferred to an institutional “accredited investor” (as defined in Rule    501(a)(1), (2), (3) or (7) under the Securities Act) or an “accredited investor” (as   defined in Rule 501(a)(4) under the Securities Act), that has furnished a signed   letter containing certain representations and agreements; or       (7) transferred in accordance with  another available exemption from the registration      requirements of the Securities Act of 1933, as amended.       Unless one of the boxes is checked, the Paying Agent will refuse to register this Subordinated Note   in the name of any person other than the registered Holder thereof; provided, however, that if box   (5), (6) or (7) is checked, the Paying Agent may require, prior to registering any such transfer of   this Subordinated Note, in its sole discretion, such legal opinions, certifications and other   information as the Paying Agent may reasonably request to confirm that such transfer is being   made pursuant to an exemption from, or in a transaction not subject to, the registration   requirements of the Securities Act such as the exemption provided by Rule 144 under such Act.   Signature:                   Signature Guarantee:               (Signatures must be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings   and loan associations and credit unions with membership in an approved signature guarantee   medallion program), pursuant to Exchange Act Rule 17Ad-15).   TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED.    The undersigned represents and warrants that it is purchasing this Subordinated Note for   its own account or an account with respect to which it exercises sole investment discretion and that   it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under   the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance   on Rule 144A and acknowledges that it has received such information regarding the Issuer as the   undersigned has requested pursuant to Rule 144A or has determined not to request such   information and that it is aware that the transferor is relying upon the undersigned’s foregoing   representations in order to claim the exemption from registration provided by Rule 144A.    Date:        Signature:                   ]EX-4.03

 Exhibit 4.03 

SUPPLEMENTAL INDENTURE 

Supplemental Indenture (this “Supplemental Indenture”), dated as of January 29, 2015 among West Claims Recovery
Services, LLC, a Delaware limited liability company, West Revenue Generation Services, LLC, a Delaware limited liability company, and Cobalt Acquisition Company, LLC, a Delaware limited liability company (each a “Guaranteeing
Subsidiary” and together, the “Guaranteeing Subsidiaries”), each a subsidiary of West Corporation, a Delaware Corporation (the “Issuer”), the Issuer and The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”). 
 W I T N E S S E T H 

WHEREAS, each of West Corporation and the Guarantors (as defined in the Indenture referred to below) has heretofore executed and delivered to
the Trustee an indenture (the “Indenture”), dated as of July 1, 2014, providing for the issuance of an unlimited aggregate principal amount of 5.375% Senior Notes due 2022 (the “Notes”); 

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiaries shall execute and deliver to the Trustee a
supplemental indenture pursuant to which each of the Guaranteeing Subsidiaries shall unconditionally guarantee all of the Issuer’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the
Indenture (the “Guarantee”); and 
 WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to
execute and deliver this Supplemental Indenture. 
 NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 

(1) Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 

(2) Agreement to Guarantee. Each Guaranteeing Subsidiary hereby agrees as follows: 

(a) Along with all Guarantors named in the Indenture, to jointly and severally unconditionally guarantee to each Holder of a
Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the Issuer hereunder or thereunder, that: 

(i) the principal of and interest, premium, if any, on the Notes will be promptly paid in full when due, whether at maturity,
by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Issuer to the Holders or the Trustee hereunder or thereunder will be promptly paid in
full or performed, all in accordance with the terms hereof and thereof; and 
 (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
Failing payment when due of any amount so 

  
 1 

 
guaranteed or any performance so guaranteed for whatever reason, the Guarantors and the Guaranteeing Subsidiaries shall be jointly and severally obligated to pay the same immediately. This is a
guarantee of payment and not a guarantee of collection. 
 (b) The obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions hereof or thereof, the recovery of any judgment against
the Issuer, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. 

(c) The following is hereby waived: diligence, presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest, notice and all demands whatsoever. 

(d) This Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, the
Indenture and this Supplemental Indenture, and each Guaranteeing Subsidiary accepts all obligations of a Guarantor under the Indenture. 

(e) If any Holder or the Trustee is required by any court or otherwise to return to the Issuer, the Guarantors (including each
Guaranteeing Subsidiary), or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuer or the Guarantors, any amount paid either to the Trustee or such Holder, this Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect. 
 (f) No Guaranteeing Subsidiary shall be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. 

(g) As between the Guaranteeing Subsidiaries, on the one hand, and the Holders and the Trustee, on the other hand, (x) the
maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article 6 of the Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by
each Guaranteeing Subsidiary for the purpose of this Guarantee. 
 (h) Each Guaranteeing Subsidiary shall have the right to
seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under this Guarantee. 

(i) Pursuant to Section 10.02 of the Indenture, after giving effect to all other contingent and fixed liabilities that are
relevant under any applicable Bankruptcy or fraudulent conveyance laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of
such other Guarantor under Article 10 of the Indenture, this new Guarantee shall be limited to the maximum amount permissible such that the obligations of such Guaranteeing Subsidiary under this Guarantee will not constitute a fraudulent transfer or
conveyance. 

  
 2 

 (j) This Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Issuer for liquidation, reorganization, should the Issuer become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of the Issuer’s assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Notes are, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on the Notes and Guarantee, whether as a “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made. In the event that any payment or any part thereof, is rescinded, reduced, restored or returned, the Note shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and not
so rescinded, reduced, restored or returned. 
 (k) In case any provision of this Guarantee shall be invalid, illegal or
unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

(l) This Guarantee shall be a general unsecured senior obligation of each Guaranteeing Subsidiary, ranking pari
passu with any other future Senior Indebtedness of each Guaranteeing Subsidiary, if any. 
 (m) Each payment to be
made by a Guaranteeing Subsidiary in respect of this Guarantee shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. 

(3) Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Guarantee shall remain in full force and effect
notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes. 
 (4) Merger, Consolidation or Sale of
All or Substantially All Assets. 
 (a) Except as otherwise provided in Section 5.01(c) of the Indenture, no Guaranteeing
Subsidiary may consolidate or merge with or into or wind up into (whether or not the Issuer or such Guaranteeing Subsidiary is the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of
its properties or assets, in one or more related transactions, to any Person unless: 
 (i) (A) such Guaranteeing Subsidiary
is the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than such Guaranteeing Subsidiary) or to which such sale, assignment, transfer, lease, conveyance or other disposition will have been made
is a corporation organized or existing under the laws of the jurisdiction of organization of such Guaranteeing Subsidiary, as the case may be, or the laws of the United States, any state thereof, the District of Columbia, or any territory thereof
(such Guaranteeing Subsidiary or such Person, as the case may be, being herein called the “Successor Person”); 

(B) the Successor Person, if other than such Guaranteeing Subsidiary, expressly assumes all the obligations of such
Guaranteeing Subsidiary under the Indenture and the Guaranteeing Subsidiary’s related Guarantee pursuant to supplemental indentures or other documents or instruments in form reasonably satisfactory to the Trustee; 

(C) immediately after such transaction, no Default exists; and 

  
 3 

 (D) the Issuer shall have delivered to the Trustee an Officer’s Certificate
and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indentures, if any, comply with the Indenture; or 

(ii) the transaction is made in compliance with Sections 4.10(a)(1) and (2) of the Indenture; 

(b) Subject to certain limitations described in the Indenture, the Successor Person will succeed to, and be substituted for, such Guaranteeing
Subsidiary under the Indenture and such Guaranteeing Subsidiary’s Guarantee. Notwithstanding the foregoing, any Guarantor may (x) consolidate or merge into or wind up into or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of its properties and assets to other Guarantors or the Issuer and (y) merge with an Affiliate of the Issuer solely for the purpose of reincorporating the Guarantor in a State of the United States as long as the amount
of Indebtedness, Preferred Stock and Disqualified Stock is not increased thereby. 
 (5) Releases. 

The Guarantee of any Guaranteeing Subsidiary shall be automatically and unconditionally released and discharged, and no further action by such
Guaranteeing Subsidiary, the Issuer or the Trustee is required for the release of such Guaranteeing Subsidiary’s Guarantee, upon: 

(1) (A) any sale, exchange, disposition or transfer (by merger, amalgamation, consolidation or otherwise) of the Capital Stock
of such Guaranteeing Subsidiary (including any sale, exchange or transfer), after which such Guaranteeing Subsidiary is no longer a Restricted Subsidiary or all or substantially all the assets of such Guaranteeing Subsidiary which sale, exchange,
disposition or transfer is made in compliance with Sections 4.10(a)(1) and (2) of the Indenture; 
 (B) the release or
discharge of the guarantee by such Guaranteeing Subsidiary of the Senior Credit Facilities (including by reason of the termination of the Senior Credit Facilities) or the guarantee that resulted in the obligation of such Guarantor to guarantee the
Notes, except a discharge or release by or as a result of payment under such guarantee; 
 (C) the designation of such
Guaranteeing Subsidiary as an Unrestricted Subsidiary pursuant to the applicable provisions in the Indenture; or 
 (D) the
Issuer exercising its Legal Defeasance option or Covenant Defeasance option in accordance with Article 8 of the Indenture or the Issuer’s obligations under the Indenture being discharged in accordance with the terms of the Indenture; and 

(2) such Guaranteeing Subsidiary delivering to the Trustee an Officer’s Certificate and an Opinion of Counsel, each
stating that all conditions precedent provided for in the Indenture relating to such transaction have been complied with. 
 (6) No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuer or the Guarantors (including the Guaranteeing Subsidiaries) under the
Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting Notes waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. 

  
 4 

 (7) Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 (8) Counterparts. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or electronic (including in
“.pdf” format) transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or electronically (including in “.pdf” format) shall be deemed to be their original signatures for all purposes. 

(9) Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 

(10) The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of
this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiaries. 

(11) Subrogation. Each Guaranteeing Subsidiary shall be subrogated to all rights of Holders against the Issuer in respect of any
amounts paid by such Guaranteeing Subsidiary pursuant to the provisions of Section 2 hereof and Section 10.01 of the Indenture; provided that, if an Event of Default has occurred and is continuing, such Guaranteeing Subsidiary shall
not be entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation until all amounts then due and payable by the Issuer under the Indenture or the Notes shall have been paid in full. 

(12) Benefits Acknowledged. Each Guaranteeing Subsidiary’ Guarantee is subject to the terms and conditions set forth in the
Indenture. Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it
pursuant to this Guarantee are knowingly made in contemplation of such benefits. 
 (13) Successors. All agreements of any
Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in Section 2(k) hereof or elsewhere in this Supplemental Indenture. All agreements of the Trustee in this Supplemental Indenture
shall bind its successors. 
 [Signature pages follow.] 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the date first above written. 
  

					
	WEST CLAIMS RECOVERY SERVICES, LLC
	By:	 	West Asset Management, Inc., its sole member
		
	By:	 	 /s/ Paul M. Mendlik

		 	Name:	 	Paul M. Mendlik
		 	Title:	 	Chief Financial Officer & Treasurer
	
	WEST REVENUE GENERATION SERVICES, LLC
	By:	 	West Business Solutions, LLC, its sole member
	By:	 	West Corporation, its sole member
		
	By:	 	 /s/ Paul M. Mendlik

		 	Name:	 	Paul M. Mendlik
		 	Title:	 	Chief Financial Officer & Treasurer
	
	COBALT ACQUISITION COMPANY, LLC
	By:	 	Reliance Intermediate, Inc., its sole member
		
	By:	 	 /s/ Paul M. Mendlik

		 	Name:	 	Paul M. Mendlik
		 	Title:	 	Chief Financial Officer & Treasurer
	
	WEST CORPORATION
		
	By:	 	 /s/ Paul M. Mendlik

		 	Name:	 	Paul M. Mendlik
		 	Title:	 	Chief Financial Officer & Treasurer

 [Signature page to Supplemental Indenture] 

 
					
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 /s/ Jonathan Glover

		 	Name:	 	Jonathan Glover
		 	Title:	 	Vice President

  
 [Signature page to
Supplemental Indenture]

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