Document:

Exhibit 4.1

 

VIRGINIA COMMERCE BANCORP, INC.

 

as Issuer

 

INDENTURE

 

Dated as of September 24, 2008

 

WILMINGTON TRUST COMPANY

 

as Trustee

 

JUNIOR SUBORDINATED DEBENTURES DUE 2038

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE
  I DEFINITIONS

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II DEBENTURES

  	
   

  
	
  Section 2.01

  	
  Authentication
  and Dating

  	
  7

  
	
  Section 2.02

  	
  Form of
  Trustee’s Certificate of Authentication

  	
  8

  
	
  Section 2.03

  	
  Form and
  Denomination of Debentures

  	
  8

  
	
  Section 2.04

  	
  Execution
  of Debentures

  	
  8

  
	
  Section 2.05

  	
  Exchange
  and Registration of Transfer of Debentures

  	
  9

  
	
  Section 2.06

  	
  Mutilated,
  Destroyed, Lost or Stolen Debentures

  	
  9

  
	
  Section 2.07

  	
  Temporary
  Debentures

  	
  10

  
	
  Section 2.08

  	
  Payment
  of Interest

  	
  10

  
	
  Section 2.09

  	
  Cancellation
  of Debentures Paid, etc

  	
  11

  
	
  Section 2.10

  	
  Intentionally
  Left Blank

  	
  11

  
	
  Section 2.11

  	
  Extension
  of Interest Payment Period

  	
  11

  
	
  Section 2.12

  	
  CUSIP
  Numbers

  	
  12

  
	
  Section 2.13

  	
  Global
  Debentures

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III PARTICULAR COVENANTS OF THE COMPANY

  	
   

  
	
  Section 3.01

  	
  Payment
  of Principal, Premium and Interest; Agreed Treatment of the Debentures

  	
  14

  
	
  Section 3.02

  	
  Offices
  for Notices and Payments, etc.

  	
  15

  
	
  Section 3.03

  	
  Appointments
  to Fill Vacancies in Trustee’s Office

  	
  15

  
	
  Section 3.04

  	
  Provision
  as to Paying Agent

  	
  15

  
	
  Section 3.05

  	
  Certificate
  to Trustee

  	
  16

  
	
  Section 3.06

  	
  Additional
  Amounts

  	
  16

  
	
  Section 3.07

  	
  Compliance
  with Consolidation Provisions

  	
  16

  
	
  Section 3.08

  	
  Limitation
  on Dividends

  	
  16

  
	
  Section 3.09

  	
  Covenants
  as to the Trust

  	
  17

  
	
  Section 3.10

  	
  Additional
  Junior Indebtedness

  	
  17

  
	
  Section 3.11

  	
  Subsidiary;
  Insured Depositary Institution

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV LISTS

  	
   

  
	
  Section 4.01

  	
  Securityholders’
  Lists

  	
  17

  
	
  Section 4.02

  	
  Preservation
  and Disclosure of Lists

  	
  18

  
	
  Section 4.03

  	
  Reports
  by Trustee

  	
  19

  
	
  Section 4.04

  	
  Reports
  by Company

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

  	
   

  
	
  Section 5.01

  	
  Events
  of Default

  	
  19

  
	
  Section 5.02

  	
  Payment
  of Debentures on Default; Suit Therefor

  	
  21

  
	
  Section 5.03

  	
  Application
  of Moneys Collected by Trustee

  	
  22

  
	
  Section 5.04

  	
  Proceedings
  by Securityholders

  	
  22

  
	
  Section 5.05

  	
  Proceedings
  by Trustee

  	
  22

  
	
  Section 5.06

  	
  Remedies
  Cumulative and Continuing

  	
  23

  
	
  Section 5.07

  	
  Direction
  of Proceedings and Waiver of Defaults by Majority of Securityholders

  	
  23

  
	
  Section 5.08

  	
  Notice
  of Defaults

  	
  23

  
	
  Section 5.09

  	
  Undertaking
  to Pay Costs

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI CONCERNING THE TRUSTEE

  	
   

  
	
  Section 6.01

  	
  Duties
  and Responsibilities of Trustee

  	
  24

  
	
  Section 6.02

  	
  Reliance
  on Documents, Opinions, etc.

  	
  25

  
	
  Section 6.03

  	
  No
  Responsibility for Recitals, etc.

  	
  26

  

 

i

 

	
  Section 6.04

  	
  Trustee,
  Authenticating Agent, Paying Agents, Transfer Agents or Registrar
  May Own Debentures

  	
  26

  
	
  Section 6.05

  	
  Moneys
  to be Held in Trust

  	
  26

  
	
  Section 6.06

  	
  Compensation
  and Expenses of Trustee

  	
  26

  
	
  Section 6.07

  	
  Officers’
  Certificate as Evidence

  	
  27

  
	
  Section 6.08

  	
  Eligibility
  of Trustee

  	
  27

  
	
  Section 6.09

  	
  Resignation
  or Removal of Trustee

  	
  27

  
	
  Section 6.10

  	
  Acceptance
  by Successor Trustee

  	
  28

  
	
  Section 6.11

  	
  Succession
  by Merger, etc.

  	
  29

  
	
  Section 6.12

  	
  Authenticating
  Agents

  	
  29

  
	
  Section 6.13

  	
  Intentionally
  Left Blank

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII CONCERNING THE SECURITYHOLDERS

  	
   

  
	
  Section 7.01

  	
  Action
  by Securityholders

  	
  30

  
	
  Section 7.02

  	
  Proof
  of Execution by Securityholders

  	
  30

  
	
  Section 7.03

  	
  Who
  Are Deemed Absolute Owners

  	
  30

  
	
  Section 7.04

  	
  Debentures
  Owned by Company Deemed Not Outstanding

  	
  31

  
	
  Section 7.05

  	
  Revocation
  of Consents; Future Holders Bound

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII SECURITYHOLDERS’ MEETINGS

  	
   

  
	
  Section 8.01

  	
  Purposes
  of Meetings

  	
  31

  
	
  Section 8.02

  	
  Call
  of Meetings by Trustee

  	
  31

  
	
  Section 8.03

  	
  Call
  of Meetings by Company or Securityholders

  	
  32

  
	
  Section 8.04

  	
  Qualifications
  for Voting

  	
  32

  
	
  Section 8.05

  	
  Regulations

  	
  32

  
	
  Section 8.06

  	
  Voting

  	
  32

  
	
  Section 8.07

  	
  Quorum;
  Actions

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX SUPPLEMENTAL INDENTURES

  	
   

  
	
  Section 9.01

  	
  Supplemental
  Indentures without Consent of Securityholders

  	
  33

  
	
  Section 9.02

  	
  Supplemental
  Indentures with Consent of Securityholders

  	
  34

  
	
  Section 9.03

  	
  Effect
  of Supplemental Indentures

  	
  35

  
	
  Section 9.04

  	
  Notation
  on Debentures

  	
  35

  
	
  Section 9.05

  	
  Evidence
  of Compliance of Supplemental Indenture to be Furnished to Trustee

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X REDEMPTION OF SECURITIES

  	
   

  
	
  Section 10.01

  	
  Optional
  Redemption

  	
  36

  
	
  Section 10.02

  	
  Special
  Event Redemption

  	
  36

  
	
  Section 10.03

  	
  Notice
  of Redemption; Selection of Debentures

  	
  36

  
	
  Section 10.04

  	
  Payment
  of Debentures Called for Redemption

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XI CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

  	
   

  
	
  Section 11.01

  	
  Company
  May Consolidate, etc., on Certain Terms

  	
  37

  
	
  Section 11.02

  	
  Successor
  Entity to be Substituted

  	
  38

  
	
  Section 11.03

  	
  Opinion
  of Counsel to be Given to Trustee

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XII SATISFACTION AND DISCHARGE OF INDENTURE

  	
   

  
	
  Section 12.01

  	
  Discharge
  of Indenture

  	
  38

  
	
  Section 12.02

  	
  Deposited
  Moneys to be Held in Trust by Trustee

  	
  39

  
	
  Section 12.03

  	
  Paying
  Agent to Repay Moneys Held

  	
  39

  
	
  Section 12.04

  	
  Return
  of Unclaimed Moneys

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  
	
  Section 13.01

  	
  Indenture
  and Debentures Solely Corporate Obligations

  	
  39

  

 

ii

 

	
  ARTICLE
  XIV MISCELLANEOUS PROVISIONS

  	
   

  
	
  Section 14.01

  	
  Successors

  	
  40

  
	
  Section 14.02

  	
  Official
  Acts by Successor Entity

  	
  40

  
	
  Section 14.03

  	
  Surrender
  of Company Powers

  	
  40

  
	
  Section 14.04

  	
  Addresses
  for Notices, etc.

  	
  40

  
	
  Section 14.05

  	
  Governing
  Law

  	
  41

  
	
  Section 14.06

  	
  Evidence
  of Compliance with Conditions Precedent

  	
  41

  
	
  Section 14.07

  	
  Business
  Day Convention

  	
  41

  
	
  Section 14.08

  	
  Table
  of Contents, Headings, etc.

  	
  41

  
	
  Section 14.09

  	
  Execution
  in Counterparts

  	
  41

  
	
  Section 14.10

  	
  Separability

  	
  41

  
	
  Section 14.11

  	
  Assignment

  	
  42

  
	
  Section 14.12

  	
  Acknowledgment
  of Rights

  	
  42

  
	
  Section 14.13

  	
  Applicability
  of the Trust Indenture Act

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XV SUBORDINATION OF DEBENTURES

  	
   

  
	
  Section 15.01

  	
  Agreement
  to Subordinate

  	
  42

  
	
  Section 15.02

  	
  Default
  on Senior Indebtedness

  	
  43

  
	
  Section 15.03

  	
  Liquidation;
  Dissolution; Bankruptcy

  	
  43

  
	
  Section 15.04

  	
  Subrogation

  	
  44

  
	
  Section 15.05

  	
  Trustee
  to Effectuate Subordination

  	
  45

  
	
  Section 15.06

  	
  Notice
  by the Company

  	
  45

  
	
  Section 15.07

  	
  Rights
  of the Trustee; Holders of Senior Indebtedness

  	
  45

  
	
  Section 15.08

  	
  Subordination
  May Not Be Impaired

  	
  46

  
	
   

  	
   

  	
   

  
	
  ANNEX
  A

  	
  Form of
  Debenture

  	
   

  

 

iii

 

THIS INDENTURE, dated as of September 24, 2008, between Virginia
Commerce Bancorp, Inc., a Virginia corporation (the “Company”), and
Wilmington Trust Company, a Delaware banking corporation, as trustee (the “Trustee”).

 

WITNESSETH:

 

WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issuance of its Junior Subordinated Debentures due 2038 (the “Debentures”)
under this Indenture and to provide, among other things, for the execution and
authentication, delivery and administration thereof, the Company has duly
authorized the execution of this Indenture.

 

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

 

ARTICLE I

DEFINITIONS

 

Section 1.01 Definitions.

 

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

 

“Acceleration Event of Default” means an Event of Default under Section 5.01(a),
(d), (e), (f), (g) or (h), whatever the reason for such Acceleration Event
of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Company” means Virginia Commerce Bancorp, Inc., a bank holding
company incorporated in the Commonwealth of Virginia, and, subject to the
provisions of Article XI, shall include its successors and assigns.

 

“Debenture” or “Debentures” has the meaning stated in the first recital
of this Indenture.

 

“Debenture Register” has the meaning specified in Section 2.05.

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Insured Depository Institution” has the same meaning as given to that
term in Section 3(c)(2) of the Federal Deposit Insurance Act or any
successor statute or rule.

 

“Interest Payment Date” means the thirtieth (30th) day of
March, June, September and December of each year, commencing on December 30,
2008, subject to Section 14.07.

 

“Interest Rate” means a per annum rate of interest equal to 10.20%.

 

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

 

“Junior Indebtedness” means without duplication and other than the
Debentures, any indebtedness, liabilities or obligations of the Company, or any
subsidiary of the Company, under debt securities (or guarantees in respect of
debt securities) whether current or future (i) initially issued to any
trust, or a trustee of a trust, partnership or other entity affiliated with the
Company that is, directly or indirectly, a finance subsidiary (as such term is
defined in Rule 3a-5 under the Investment Company Act of 1940) or other
financing vehicle of the Company or any predecessor or Subsidiary of the
Company in connection with the issuance by that entity of preferred securities
or other securities that are eligible to qualify for Tier 1 capital treatment
(or its then equivalent) for purposes of the capital adequacy guidelines of the
Federal Reserve, as then in effect and applicable to the Company (or, if the
Company is not a bank holding company, such guidelines applied to the Company
as if the Company were subject to such guidelines); provided, however, that the
inability of the Company to treat all or any portion of the Junior Indebtedness
as Tier 1 capital shall not disqualify it as Junior Indebtedness if such
inability results from the Company having cumulative preferred stock, minority
interests in consolidated subsidiaries, or any other class of 

 

3

 

security
or interest which the Federal Reserve now or may hereafter accord Tier 1
capital treatment (including the Debentures) in excess of the amount which may
qualify for treatment as Tier 1 capital under applicable capital adequacy
guidelines; or (ii) with respect to which in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is
provided that (a) such obligations are pari passu, junior or otherwise not
superior in right of payment to the Debentures and (b) such obligations
are subject to the obligor’s right to defer payments of interest for a
consecutive period no less than five years.

 

“Liquidation Amount” means the liquidation amount of $1,000.00 per
Trust Security.

 

“Major Bank Subsidiary” means any Insured Depository Institution
subsidiary of the Company which, together with any subsidiaries of such Insured
Depository Institution subsidiary, has total assets that exceed 50 percent (or
such lesser or greater amount set forth in the then current interpretation by
the Federal Reserve of “major bank subsidiary” as such term is used in the
Adopting Release accompanying the Final Rule on Risk-Based Capital
Standards: Trust Preferred Securities and the Definition of Capital, adopted on
March 1, 2005, by the Federal Reserve) of the total assets of the Company
and its subsidiaries consolidated as of the end of the most recently completed
fiscal quarter of the Company.  For
purposes of this definition, an Insured Depository Institution will be deemed
to be a subsidiary of the Company if the Company has “control” over the Insured
Depository Institution as defined in 12 U.S.C. 1841(a)(2) or any successor
statute or rule.

 

“Maturity Date” means September 30, 2038, subject to Section 14.07.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

“Responsible Officer” means, with respect to the Trustee, any officer
of the Trustee with direct responsibility for the administration of the
Indenture, and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of that officer’s
knowledge of and familiarity with the particular subject.

 

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

 

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

 

“Senior Indebtedness” means, with respect to the Company, (i) the
principal, premium, if any, and interest in respect of (A) indebtedness of
the Company for all borrowed and purchased money and (B) indebtedness
evidenced by securities, debentures, notes, bonds or other similar instruments
issued by the Company; (ii) all capital lease obligations of the Company; (iii) all
obligations of the Company issued or assumed as the deferred purchase price of
property, all conditional sale obligations of the Company and all obligations
of the Company under any title retention agreement; (iv) all obligations
of the Company for the reimbursement of any letter of credit, any banker’s acceptance,
any security purchase facility, any repurchase agreement or similar
arrangement, any interest rate swap, any other hedging arrangement, any
obligation under options or any similar credit or other transaction; (v) all
obligations of the Company associated with derivative products such as interest
and foreign exchange rate contracts, commodity contracts, and similar
arrangements; (vi) all obligations of the type referred to in clauses (i) through
(v) above of other Persons for the payment of which the Company is
responsible or liable as obligor, guarantor or otherwise including, without
limitation, similar obligations arising from off-balance sheet guarantees and
direct credit substitutes; and (vii) all obligations of the type referred
to in clauses (i) through (vi) above of other Persons secured by any
lien on any property or asset of the Company (whether or not such obligation is
assumed by the Company), whether incurred on or prior to the date of this
Indenture or thereafter incurred. 
Notwithstanding the foregoing, “Senior Indebtedness” shall not include (1) any
Junior Indebtedness, (2) Debentures issued pursuant to this Indenture and
guarantees in respect of such Debentures, (3) trade accounts payable of
the Company arising in the ordinary course of business (such trade accounts
payable being pari passu in right of payment to
the Debentures), or (4) obligations with respect to which (a) in the
instrument creating or evidencing the same or pursuant to which the same is
outstanding, it is provided that such obligations are pari passu,
junior or otherwise not 

 

5

 

superior
in right of payment to the Debentures and (b) the Company, prior to the
issuance thereof, has notified (and, if then required under the applicable
guidelines of the regulating entity, has received approval from) the Federal
Reserve.  Senior Indebtedness shall
continue to be Senior Indebtedness and be entitled to the subordination
provisions irrespective of any amendment, modification or waiver of any term of
such Senior Indebtedness. 
Notwithstanding anything to the contrary contained herein, Senior
Indebtedness shall not include: (i) the obligations of the Company under
the Guarantee (ii) the Company’s Fixed/Floating Rate Junior Subordinated
Debt Securities due 2036 issued to VCBI Capital Trust III pursuant to an
Indenture dated as of December 20, 2005 by and between the Company and
Wilmington Trust Company; (iii) the related guarantee of the Company with
respect to the securities of VCBI Capital Trust III, issued pursuant to that
certain Guarantee Agreement, dated as of December 20, 2005 by and between
the Guarantor and Wilmington Trust Company; (iv) the Company’s Floating
Rate Junior Subordinated Notes due 2032 issued to VCBI Capital Trust II
pursuant to an Indenture dated as of December 19, 2002 by and between the
Company and The Bank of New York,; and (v) the related guarantee of the
Company with respect to the securities of VCBI Capital Trust II, issued
pursuant to that certain Guarantee Agreement, dated as of December 19,
2002 by and between the Company and The Bank of New York.

 

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

 

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

 

“Special Redemption Price”
means, with respect to the redemption of any Debenture following a Special
Event, an amount in cash equal to 105% of the principal amount of the
Debentures if the Redemption Date occurs prior to September 30, 2009, and
thereafter equal to the percentage of the principal amount of the Debentures
that is specified below for the Redemption Date, plus, in each case, accrued
and unpaid interest through the date of redemption.

 

	
  Special Redemption During the 

  12 Month Period Beginning September 30,

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
  2009

  	
   

  	
  104

  	
  %

  
	
  2010

  	
   

  	
  103

  	
  %

  
	
  2011

  	
   

  	
  102

  	
  %

  
	
  2012

  	
   

  	
  101

  	
  %

  
	
  2013 and thereafter

  	
   

  	
  100

  	
  %

  

 

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

 

“Tax Event” means the receipt by the Company and the Trust of an Opinion
of Counsel experienced in such matters to the effect that, as a result of any
amendment to or change (including any announced prospective change) in the laws
or any regulations thereunder of the United States or any political subdivision
or taxing authority thereof or therein, or as a result of any official
administrative pronouncement (including any private letter ruling, technical
advice memorandum, field service advice, regulatory procedure, notice or
announcement (including any notice or announcement of intent to adopt such
procedures or regulations) (an “Administrative Action”)) or judicial decision
interpreting or applying such laws or regulations, regardless of whether such
Administrative Action or judicial decision is issued to or in connection with a
proceeding involving the Company or the Trust and whether or not subject to
review or appeal, which amendment, clarification, change, Administrative Action
or decision is enacted, promulgated or announced, in each case on or after the
date of original issuance of the Debentures, there is 

 

6

 

more
than an insubstantial risk that: (i) the Trust is, or will be within 90
days of the date of such opinion, subject to United States federal income tax
with respect to income received or accrued on the Debentures; (ii) interest
payable by the Company on the Debentures is not, or within 90 days of the date
of such opinion, will not be, deductible by the Company, in whole or in part,
for United States federal income tax purposes; or (iii) the Trust is, or
will be within 90 days of the date of such opinion, subject to or otherwise
required to pay, or required to withhold from distributions to holders of Trust
Securities, more than a de minimis amount of other taxes (including withholding
taxes), duties, assessments or other governmental charges.

 

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

 

“Trust Indenture Act” means the Trust Indenture Act of 1939 as in force
at the date as of which this Indenture was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, “Trust
Indenture Act” means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

 

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

 

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

 

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

 

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

 

ARTICLE II

DEBENTURES

 

Section 2.01 Authentication and Dating.

 

Upon
the execution and delivery of this Indenture, or from time to time thereafter,
Debentures in an aggregate principal amount not in excess of $25,775,000 be
executed and delivered by the Company to the Trustee for authentication, and
the Trustee shall thereupon authenticate and make available for delivery said
Debentures to or upon the written order of the Company, signed by its Chairman
of the Board of Directors, Vice Chairman, President or Chief Financial Officer
or one of its Vice Presidents, without any further action by the Company
hereunder. In authenticating such Debentures, and accepting the additional
responsibilities under this Indenture in relation to such Debentures, the
Trustee shall be entitled to receive, and (subject to Section 6.01) shall
be fully protected in relying upon:

 

(a)                                  a copy of any Board Resolution or Board
Resolutions relating thereto and, if applicable, an appropriate record of any
action taken pursuant to such resolution, in each case certified by the
Secretary or an Assistant Secretary or other officers with appropriate delegated
authority of the Company as the case may be

 

(b)                                 an Opinion of Counsel prepared in accordance
with Section 14.6 which shall also state:

 

(1)                                  that such Debentures, when authenticated and
delivered by the Trustee and issued by the Company in each case in the manner
and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company, subject to or
limited by applicable bankruptcy, insolvency, reorganization, conservatorship,
receivership, moratorium and other statutory or decisional laws relating to or
affecting creditors’ rights or the reorganization of financial institutions
(including, without limitation, preference and fraudulent conveyance or
transfer laws), heretofore or hereafter enacted or in effect, affecting the
rights of creditors generally; and

 

7

 

(2)                                  that all laws and requirements in respect of
the execution and delivery by the Company of the Debentures have been complied
with and that authentication and delivery of the Debentures by the Trustee will
not violate the terms of this Indenture.

 

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

 

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

 

Section 2.02 Form of Trustee’s Certificate of
Authentication.

 

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

 

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

 

 

	
   

  	
  Wilmington
  Trust Company,

  
	
   

  	
   

  	
  not
  in its individual capacity

  
	
   

  	
   

  	
  but
  solely as trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
				

 

Section 2.03 Form and Denomination of Debentures.

 

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

 

Section 2.04 Execution of Debentures.

 

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

 

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

 

8

 

Every Debenture shall be dated the date of its authentication.

 

Section 2.05 Exchange and Registration of Transfer of
Debentures.

 

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

 

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

 

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

 

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

 

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

 

Section 2.06 Mutilated, Destroyed, Lost or Stolen Debentures.

 

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

 

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

 

9

 

destruction,
loss or theft, evidence satisfactory to the Company and to the Trustee of the
destruction, loss or theft of such Debenture and of the ownership thereof.

 

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

 

Section 2.07 Temporary Debentures.

 

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

 

Section 2.08 Payment of Interest.

 

Each Debenture will bear interest at the Interest Rate on the principal
thereof, on any overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) on Additional Interest and on any
overdue installment of interest (including Defaulted Interest), payable
(subject to the provisions of Article XV) on each Interest Payment Date
and on the Maturity Date, any Optional Redemption Date or the Special
Redemption Date, as the case may be. Interest and any Additional Interest on
any Debenture that is payable, and is punctually paid or duly provided for by
the Company, on any Interest Payment Date shall be paid to the Person in whose
name such Debenture (or one or more Predecessor Securities) is registered at
the close of business on the regular record date for such interest installment,
except that interest and any Additional Interest payable on the Maturity Date,
any Optional Redemption Date or the Special Redemption Date, as the case may
be, other than any Interest Payment Date shall be paid to the Person to whom
principal is paid. In case (i) the Maturity Date of any Debenture or (ii) any
Debenture or portion thereof is called for redemption and the related Optional
Redemption Date or the Special Redemption Date, as the case may be, is subsequent
to the regular record date with respect to any Interest Payment Date and prior
to such Interest Payment Date, interest on such Debenture will be paid upon
presentation and surrender of such Debenture.

 

Any interest on any Debenture, including Additional Interest, that is
payable, but is not punctually paid or duly provided for by the Company, on any
Interest Payment Date (herein called “Defaulted Interest”) shall forthwith
cease to be payable to the holder on the relevant regular record date by virtue
of having been such holder, and such Defaulted Interest shall be paid by the
Company to the Persons in whose names such Debentures (or their respective
Predecessor Securities) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner: the Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each such Debenture and the
date of the proposed payment, 

 

10

 

and
at the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements reasonably satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as provided in this paragraph. Thereupon the Trustee shall
fix a special record date for the payment of such Defaulted Interest, which
shall not be more than fifteen nor less than ten days prior to the date of the
proposed payment and not less than ten days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the special record date therefor to be mailed, first class postage prepaid,
to each Securityholder at his or her address as it appears in the Debenture
Register, not less than ten days prior to such special record date. Notice of
the proposed payment of such Defaulted Interest and the special record date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid
to the Persons in whose names such Debentures (or their respective Predecessor
Securities) are registered on such special record date and thereafter the
Company shall have no further payment obligation in respect of the Defaulted
Interest.

 

Payments of interest on the Debentures shall include interest accrued
to but excluding the applicable Interest Payment Date. For purposes of
clarification, for the initial Interest Payment Date, interest shall accrue
from (and including) the original issuance date of the Debentures to (but
excluding) the initial Interest Payment Date (December 30, 2008), and for
each subsequent Interest Payment Date, interest shall accrue from (and including)
the immediately succeeding Interest Payment Date to (but excluding) such
subsequent Interest Payment Date.

 

The amount of interest payable for any interest period shall be
computed and paid on the basis of a 360-day year consisting of twelve 30-day
months. Any interest scheduled to become payable on an Interest Payment Date
occurring during an Extension Period shall not be Defaulted Interest and shall
be payable on such other date as may be specified in the terms of such
Debentures.

 

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

 

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

 

Section 2.09 Cancellation of Debentures Paid, etc.

 

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

 

Section 2.10 Intentionally Left Blank.

 

Section 2.11 Extension of Interest Payment Period.

 

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

 

11

 

annual
rate equal to the Interest Rate, compounded quarterly from the date such
Additional Interest would have been payable were it not for the Extension
Period, to the extent permitted by applicable law. No interest or Additional
Interest (except any Additional Amounts that may be due and payable) shall be
due and payable during an Extension Period, except at the end thereof. At the
end of any Extension Period, the Company shall pay all Additional Interest then
accrued and unpaid on the Debentures; provided, however, that
during any Extension Period, the Company shall be subject to the restrictions
set forth in Section 3.08. Prior to the termination of any Extension
Period, the Company may further extend such Extension Period, provided,
that no Extension Period (including all previous and further consecutive
extensions that are part of such Extension Period) shall exceed 20 consecutive
quarterly periods, or extend beyond the Maturity Date. Upon the termination of
any Extension Period and upon the payment of all accrued and unpaid interest
and Additional Interest, the Company may commence a new Extension Period,
subject to the foregoing requirements. The Company must give the Trustee notice
of its election to begin or extend an Extension Period no later than the close
of business on the fifteenth Business Day prior to the applicable Interest
Payment Date. The Trustee shall give notice of the Company’s election to begin
or extend an Extension Period to the Securityholders, promptly after receipt of
notice from the Company of its election to begin or extend an Extension Period.

 

Section 2.12 CUSIP Numbers.

 

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

 

Section2.13 Global Debentures.

 

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

 

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

 

(c) If any Global Debenture is to be exchanged for other
Debentures or canceled in part, or if another Debenture is to be exchanged in
whole or in part for a beneficial interest in any Global Debenture, then either
(i) such Global Debenture shall be so surrendered for exchange or
cancellation as provided herein or (ii) the principal amount thereof shall
be reduced or increased, subject to Section 2.03, by an amount equal to
the portion thereof to be so exchanged or canceled, or equal to the principal
amount of such Debenture to be so exchanged for a beneficial interest therein,
as the case may be, by means of an appropriate adjustment made on the records
of the Debenture 

 

12

 

registrar,
whereupon the Trustee, in accordance with the Applicable Depositary Procedures,
shall instruct the Depositary or its authorized representative to make a
corresponding adjustment to its records. Upon any such surrender or adjustment
of a Global Debenture by the Depositary, accompanied by registration
instructions, the Company shall execute and the Trustee shall authenticate and
deliver Debentures issuable in exchange for such Global Debenture (or any portion
thereof) in accordance with the instructions of the Depositary. The Trustee may
conclusively rely on, and shall be fully protected in relying on, such
instructions.

 

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

 

(e) Debentures distributed to holders of Preferred Securities upon
the dissolution of the Trust shall be distributed in the form of one or more
fully registered certificates registered in the names of the holders of Preferred
Securities. Debentures distributed to holders of Preferred Securities upon the
dissolution of the Trust shall not be issued in the form of a Global Debenture
or any other form intended to facilitate book-entry trading in beneficial
interests in such Debentures.

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

ARTICLE III

PARTICULAR COVENANTS OF THE COMPANY

 

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

 

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

 

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

 

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

 

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

 

14

 

Section 3.02 Offices for Notices and Payments, etc.

 

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

 

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

 

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

 

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

 

Section 3.04 Provision as to Paying Agent.

 

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

 

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

 

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

 

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

 

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

 

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

 

(c) Anything in this Section 3.04 to the contrary
notwithstanding, the Company may, at any time, for the purpose of obtaining a
satisfaction and discharge with respect to the Debentures, or for any other
reason, pay, or 

 

15

 

direct
any Paying Agent to pay, to the Trustee all sums held in trust by the Company
or any such Paying Agent, such sums to be held by the Trustee upon the same
terms and conditions herein contained.

 

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

 

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

 

Section 3.05 Certificate to Trustee.

 

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

 

Section 3.06 Additional Amounts.

 

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

 

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

 

Section 3.07 Compliance with Consolidation Provisions.

 

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

 

Section 3.08 Limitation on Dividends.

 

If (i) there shall have occurred and be
continuing a Default or an Event of Default, (ii) the Company shall be in
default with respect to its payment of any obligations under the Preferred
Securities Guarantee or (iii) the Company shall have given notice of its
election to defer payments of interest on the Debentures by extending the
interest payment period as provided herein and such period, or any extension
thereof, shall have commenced and be continuing, then the Company may not and
shall not permit any Subsidiary to (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company’s or such Subsidiary’s capital stock (other
than payments of dividends or distributions to the Company or payments of
dividends from direct or indirect Subsidiaries of the Company to their parent
corporations, which also shall be direct or indirect subsidiaries of the
Company) or make any guarantee payments with respect to the foregoing or (ii) make
any payment of principal of or interest or premium, if any, on or repay,
repurchase or redeem any debt securities of 

 

16

 

the Company or any
Subsidiary that rank pari passu in
all respects with or junior in interest to the Debentures (other than, with
respect to clauses (i) or (ii) above, (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, in connection with a dividend reinvestment or
stockholder stock purchase plan or in connection with the issuance of capital
stock of the Company (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into
prior to the applicable Extension Period, Default or Event of Default, (b) as
a result of any exchange or conversion of any class or series of the Company’s
capital stock (or any capital stock of a Subsidiary of the Company) for any
class or series of the Company’s capital stock or of any class or series of the
Company’s indebtedness for any class or series of the Company’s capital stock, (c) the
purchase of fractional interests in shares of the Company’s capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (d) any declaration of a dividend
in connection with any stockholders’ rights plan, or the issuance of rights,
stock or other property under any stockholders’ rights plan, or the redemption
or repurchase of rights pursuant thereto, (e) any dividend in the form of
stock, warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of such warrants, options or other rights is the same
stock as that on which the dividend is being paid or ranks pari passu with or
junior to such stock and any cash payments in lieu of fractional shares issued
in connection therewith, (f) a dividend or distribution on, a redemption,
purchase or acquisition of, or a liquidation payment with respect to equity
securities of an Insured Depository Institution subsidiary, or (g) payments
under the Preferred Securities Guarantee).

 

Section 3.09 Covenants as to the Trust.

 

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

 

Section 3.10 Additional Junior Indebtedness. The Company
shall not, and it shall not cause or permit any Subsidiary of the Company to,
incur, issue or be obligated on any additional Junior Indebtedness, either
directly or indirectly, by way of guarantee, suretyship or otherwise, other
than additional Junior Indebtedness (i) that, by its terms, is expressly
stated to be either junior and subordinate or pari passu
in all respects to the Debentures, and (ii) of which the Company has
notified (and, if then required under the applicable guidelines of the
regulating entity, has received approval from) the Federal Reserve, if the
Company is a bank or financial holding company, or the OTS, if the Company is a
savings and loan holding company.

 

Section 3.11 Subsidiary; Insured Depository Institution.                                       So long as any of the Debentures remain
outstanding, at least one operating Subsidiary of the Company shall be an
Insured Depository Institution.

 

ARTICLE IV

LISTS

 

Section 4.01 Securityholders’ Lists.

 

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

 

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

 

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

 

17

 

such
list is furnished; except that no such lists need be furnished under this Section 4.01
so long as the Trustee is in possession thereof by reason of its acting as Debenture
registrar.

 

Section 4.02 Preservation and Disclosure of Lists.

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

Section 4.03 Reports
by Trustee.

 

(a) The Trustee shall transmit to Holders such reports concerning
the Trustee and its actions under this Indenture as may be required pursuant to
the Trust Indenture Act (applied as if this Indenture were subject to the Trust
Indenture Act),  including,
without limitation, Section 313(b) thereof, at the times and in the
manner provided pursuant thereto. The
Trustee shall comply with Section 313(c) of the Trust Indenture Act
in transmitting such reports.

 

(b) Reports so required to be transmitted at stated intervals of
not more than 12 months shall be transmitted no later than thirty days after June 30
in each calendar year, commencing with the first June 30 after the first
issuance of Securities under this Indenture.

 

(c) A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each securities exchange
upon which any Securities are listed, with the Company, and to the extent
required, with the Commission. The Company will notify the Trustee when any
Securities are listed on any securities exchange.

 

Section 4.04 Reports
by Company.

 

The Company shall file with the Trustee and the Commission, and
transmit to Holders, copies of such information, documents and other reports,
and such summaries thereof, as may be required pursuant to the Trust Indenture
Act (applied as if this Indenture were subject to the Trust Indenture Act) at
the times and in the manner provided in
the Trust Indenture Act; provided that
any such information, documents or reports required to be filed with the
Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act shall be filed with the Trustee within 15 days after the same are
filed with the Commission.

 

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

 

Section 5.01 Events of Default.

 

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

 

(a)           the Company defaults in the payment of any
interest upon any Debenture, including any Additional Interest in respect
thereof, following the nonpayment of any such interest for twenty or more
consecutive quarterly interest payment periods, and the continuation of such
default for a period of thirty days following the end of the Extension Period;
or

 

(b)           the Company defaults in the payment of all or
any part of the principal of (or premium, if any, on) any Debentures as and
when the same shall become due and payable either at maturity, upon redemption,
by declaration of acceleration or otherwise; or

 

(c)           the Company defaults in the performance of,
or breaches, any of its covenants or agreements in this Indenture or in the
terms of the Debentures established as contemplated in this Indenture (other
than a covenant or agreement a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with), and continuance of
such default or breach for a period of 30 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the holders of at least 25% in aggregate principal amount of
the outstanding Debentures, a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder; or

 

19

 

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

 

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

 

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

 

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

 

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

 

If an Acceleration Event of Default occurs and is continuing with
respect to the Debentures, then, and in each and every such case, unless the
principal of the Debentures shall have already become due and payable, either
the Trustee or the holders of not less than 25% in aggregate principal amount
of the Debentures then outstanding hereunder, by notice in writing to the
Company (and to the Trustee if given by Securityholders), may declare the
entire principal of the Debentures and the interest accrued thereon, if any, to
be due and payable immediately, and upon any such declaration the same shall
become immediately due and payable.  If
an Event of Default under Section 5.1(b) or (c) occurs and is
continuing with respect to the Debentures, then, and in each and every such
case, unless the principal of the Debentures shall have already become due and
payable, either the Trustee or the holders of not less than 25% in aggregate
principal amount of the Debentures then outstanding hereunder, by notice in
writing to the Company (and to the Trustee if given by Securityholders), may
proceed to remedy the default or breach thereunder by such appropriate judicial
proceedings as the Trustee or such holders shall deem most effectual to remedy
the defaulted covenant or enforce the provisions of this Indenture so breached,
either by suit in equity or by action at law, for damages or otherwise.  Notwithstanding anything to the contrary in
this Indenture, if at any time during the period in which this Indenture
remains in force and effect, the Company ceases or elects to cease to be
subject to the supervision and regulation of both of the Federal Reserve or
Office of Thrift Supervision (or successor agencies), then any event described
in Sections 5.1(b) or (c) shall be deemed to be an Acceleration Event
of Default resulting in an acceleration of payment of the Debentures.

 

The foregoing provisions, however, are subject to the condition that
if, at any time after the principal of the Debentures shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, (i) the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Debentures and the principal of
and premium, if any, on the Debentures which shall have become due otherwise
than by acceleration (with interest upon such principal and premium, if any,
and Additional Interest) and such amount as shall be sufficient to cover
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and all other amounts due to the
Trustee pursuant to Section 6.06, if any, and (ii) all Events of
Default under this Indenture, other than the non-payment of the principal of or
premium, if any, on Debentures which shall have become due by acceleration,
shall have been cured, waived or otherwise remedied as provided herein — then
and in every such case the holders of a majority in aggregate principal amount
of the Debentures then outstanding, 

 

20

 

by
written notice to the Company and to the Trustee, may waive all defaults and
rescind and annul such declaration and its consequences, but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent default
or shall impair any right consequent thereon.

 

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

 

Section 5.02 Payment of Debentures on Default; Suit Therefor.

 

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

 

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

 

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

 

21

 

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

 

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

 

Section 5.03 Application of Moneys Collected by Trustee.

 

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

 

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

 

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

 

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

 

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

 

Section 5.04 Proceedings by Securityholders.

 

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

 

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

 

Section 5.05 Proceedings by Trustee.

 

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

 

22

 

Section 5.06 Remedies Cumulative and Continuing.

 

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

 

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

 

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

 

Section 5.08 Notice of Defaults.

 

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

 

23

 

Trustee
shall be protected in withholding such notice if and so long as a Responsible
Officer of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Securityholders.

 

Section 5.09 Undertaking to Pay Costs.

 

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

 

ARTICLE VI

CONCERNING THE TRUSTEE

 

Section 6.01 Duties and Responsibilities of Trustee.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

Section 6.02 Reliance on Documents, Opinions, etc.

 

Except as otherwise provided in Section 6.01:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

25

 

Section 6.03 No Responsibility for Recitals, etc.

 

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

 

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

 

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

 

Section 6.05 Moneys to be Held in Trust.

 

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

 

Section 6.06 Compensation and Expenses of Trustee.

 

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

 

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

 

26

 

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

 

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

 

Section 6.07 Officers’ Certificate as Evidence.

 

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

 

Section 6.08 Eligibility of Trustee.

 

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

 

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

 

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

 

Section 6.09 Resignation or Removal of Trustee.

 

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

 

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

 

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

 

27

 

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

 

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

 

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

 

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

 

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

 

Section 6.10 Acceptance by Successor Trustee.

 

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

 

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

 

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

 

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

 

28

 

Section 6.11 Succession by Merger, etc.

 

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

 

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

 

Section 6.12 Authenticating Agents.

 

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

 

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

 

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

 

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

 

29

 

Section 6.13           [Intentionally Left Blank]

 

ARTICLE VII

CONCERNING THE SECURITYHOLDERS

 

Section 7.01 Action by Securityholders.

 

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

 

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

 

Section 7.02 Proof of Execution by Securityholders.

 

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

 

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

 

Section 7.03 Who Are Deemed Absolute Owners.

 

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

 

30

 

Section 7.04 Debentures Owned by Company Deemed Not Outstanding.

 

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

 

Section 7.05 Revocation of Consents; Future Holders Bound.

 

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

 

ARTICLE VIII

SECURITYHOLDERS’ MEETINGS

 

Section 8.01 Purposes of Meetings.

 

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

 

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

 

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

 

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

 

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

 

Section 8.02 Call of Meetings by Trustee.

 

The Trustee may at any time call a meeting of Securityholders to take
any action specified in Section 8.01, to be held at such time and at such
place in The City of New York, the Borough of Manhattan, or Wilmington, 

 

31

 

Delaware,
as the Trustee shall determine. Notice of every meeting of the Securityholders,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting, shall be mailed to holders of
Debentures affected at their addresses as they shall appear on the Debentures
Register. Such notice shall be mailed not less than 20 nor more than 180 days
prior to the date fixed for the meeting.

 

Section 8.03 Call of Meetings by Company or Securityholders.

 

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

 

Section 8.04
Qualifications for Voting.

 

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

 

Section 8.05 Regulations.

 

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

 

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

 

Subject to the provisions of Section 7.04, at any meeting each
holder of Debentures with respect to which such meeting is being held or proxy
therefor shall be entitled to one vote for each $1,000.00 principal amount of
Debentures held or represented by such holder; provided, however,
that no vote shall be cast or counted at any meeting in respect of any
Debenture challenged as not outstanding and ruled by the chairman of the
meeting to be not outstanding. The chairman of the meeting shall have no right
to vote other than by virtue of Debentures held by such chairman or instruments
in writing as aforesaid duly designating such chairman as the Person to vote on
behalf of other Securityholders. Any meeting of Securityholders duly called
pursuant to the provisions of Section 8.02 or 8.03 may be adjourned from
time to time by a majority of those present, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.

 

Section 8.06 Voting.

 

The
vote upon any resolution submitted to any meeting of holders of Debentures with
respect to which such meeting is being held shall be by written ballots on
which shall be subscribed the signatures of such holders or of their
representatives by proxy and the serial number or numbers of the Debentures
held or represented by them. The permanent chairman of the meeting shall
appoint two inspectors of votes who shall count all votes cast at the meeting
for or against any resolution and who shall make and file with the secretary of
the meeting their verified written reports in triplicate of all votes cast at
the meeting. A record in duplicate of the proceedings of each meeting 

 

32

 

of
Securityholders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of
votes on any vote by ballot taken thereat and affidavits by one or more Persons
having knowledge of the facts setting forth a copy of the notice of the meeting
and showing that said notice was mailed as provided in Section 8.02. The
record shall show the serial numbers of the Debentures voting in favor of or
against any resolution. The record shall be signed and verified by the affidavits
of the permanent chairman and secretary of the meeting and one of the
duplicates shall be delivered to the Company and the other to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting.

 

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

 

Section 8.07 Quorum; Actions.

 

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

 

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

 

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

 

ARTICLE IX

SUPPLEMENTAL INDENTURES

 

Section 9.01 Supplemental Indentures without Consent of
Securityholders.

 

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

 

(a) to evidence the succession of another Person to the Company,
or successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of the Company, pursuant to Article XI
hereof, including to expressly state herein that any debt securities (or
guarantees in respect thereof) issued by such successor entity on, prior to or
following the date of such succession, to any trust, or a trustee of a trust,
partnership or other entity affiliated with the successor corporation that is,
directly or indirectly, a finance subsidiary (as that term is defined in Section 3a-5
of the Investment Company Act of 1940) or other financing vehicle of the 

 

33

 

successor
entity or any subsidiary thereof, in connection with the issuance by that
entity of preferred securities or other securities that are eligible to qualify
as Tier 1 capital (or its then equivalent) for the successor entity under the
capital adequacy guidelines of the Federal Reserve, or that would so qualify
but for limitations on the amount of such securities includable in Tier 1
capital under such guidelines, shall rank pari passu with the Debentures;

 

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

 

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

 

(d) to add to, delete from, or revise the terms of Debentures,
including, without limitation, any terms relating to the issuance, exchange,
registration or transfer of Debentures, including to provide for transfer
procedures and restrictions substantially similar to those applicable to the
Preferred Securities, as required by Section 2.05, provided, that
any such action shall not adversely affect the interests of the holders of the
Debentures then outstanding (it being understood, for purposes of this proviso,
that transfer restrictions on Debentures substantially similar to those
applicable to Preferred Securities shall not be deemed to adversely affect the
holders of the Debentures);

 

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

 

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

 

(g) [Intentionally Left Blank]; or

 

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

 

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

 

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

 

Section 9.02 Supplemental Indentures with Consent of
Securityholders.

 

With the consent (evidenced as provided in Section 7.01) of the
holders of a majority in aggregate principal amount of the Debentures at the
time outstanding affected by such supplemental indenture, the Company, when
authorized by a Board Resolution, and the Trustee may from time to time and at
any time enter into an indenture or 

 

34

 

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 any
supplemental indenture or of modifying in any manner the rights of the holders
of the Debentures; provided, however, that no such supplemental
indenture shall, without the consent of the holders of each Debenture then
outstanding and affected thereby, (i) change the Maturity Date of any
Debenture, or reduce the principal amount thereof or any premium thereon, or
reduce the rate or extend the time of payment of interest thereon, or reduce
any amount payable on redemption thereof, or increase the aggregate principal
amount of Debentures then outstanding, or change any of the redemption
provisions, or make the principal thereof or any interest or premium thereon
payable in any coin or currency other than that provided in the Debentures, or
impair or affect the right of any Securityholder to institute suit for payment
thereof, or (ii) reduce the aforesaid percentage of Debentures the holders
of which are required to consent to any such supplemental indenture; and provided,
further, that if the Debentures are held by the Trust or the trustee of
the Trust, such supplemental indenture shall not be effective until the holders
of a majority in aggregate liquidation amount of the outstanding Preferred
Securities shall have consented to such supplemental indenture; provided,
further, that if the consent of the Securityholder of each outstanding
Debenture is required, such supplemental indenture shall not be effective until
each holder of the outstanding Preferred Securities shall have consented to
such supplemental indenture.

 

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

 

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

 

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

 

Section 9.03 Effect of Supplemental Indentures.

 

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

 

Section 9.04 Notation on Debentures.

 

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

 

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

 

The
Trustee, subject to the provisions of Sections 6.01 and 6.02, shall, in
addition to the documents required by Section 14.06, receive an Officers’
Certificate as conclusive evidence that any supplemental indenture executed
pursuant hereto complies with the requirements of this Article IX. The
Trustee shall also receive an 

 

35

 

Opinion
of Counsel as conclusive evidence that any supplemental indenture executed
pursuant to this Article IX is authorized or permitted by, and conforms
to, the terms of this Article IX and that it is proper for the Trustee
under the provisions of this Article IX to join in the execution thereof.

 

ARTICLE X

REDEMPTION OF SECURITIES

 

Section 10.01 Optional Redemption.

 

(a) The Company shall have the right, subject to the receipt by
the Company of the prior approval from the Federal Reserve, if then required
under applicable capital guidelines or policies of the Federal Reserve, to
redeem the Debentures, in whole or (provided that all accrued and unpaid
interest has been paid on all Debentures) from time to time in part, on any
Interest Payment Date on or after September 30, 2013 (each, an “Optional
Redemption Date”), at the Optional Redemption Price.

 

(b) Subject
to the provisions of Section 10.3, the Company shall have the right to
redeem Debentures at any time and from time to time in a principal amount equal
to the Liquidation Amount of any Preferred Securities purchased and
beneficially owned by the Company, plus an additional principal amount of
Debentures equal to the Liquidation Amount of that number of Common Securities
that bears the same proportion to the total number of Common Securities then
outstanding as the number of Preferred Securities to be redeemed bears to the
total number of Preferred Securities then outstanding.  Such Debentures shall be redeemed pursuant to
this Section 10.01(b) only in exchange for and upon surrender by the
Company to the Property Trustee of the Preferred Securities and a proportionate
amount of Common Securities, whereupon the Property Trustee shall cancel the
Preferred Securities and Common Securities so surrendered and a Like Amount of
Debentures shall be extinguished by the Trustee and shall no longer be deemed
Outstanding.

 

Section 10.02 Special Event Redemption.

 

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

 

Section 10.03 Notice of Redemption; Selection of Debentures.

 

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

 

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

 

36

 

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

 

The Company will give the Trustee notice not less than 45 nor more than
75 days prior to the Optional Redemption Date or Special Redemption Date, as
applicable, and as to the aggregate principal amount of Debentures to be
redeemed, and the Trustee shall select, in such manner as in its sole
discretion it shall deem appropriate and fair, the Debentures or portions
thereof (in integral multiples of $1,000) to be redeemed.

 

Section 10.04 Payment of Debentures Called for Redemption.

 

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

 

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

 

ARTICLE XI

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND
LEASE

 

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

 

Nothing contained in this Indenture or in the Debentures shall prevent
any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company) or successive consolidations or
mergers in which the Company or its successor or successors shall be a party or
parties, or shall prevent any sale, conveyance, transfer or other disposition of
the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other Person (whether or not affiliated
with the Company, or its successor or successors) authorized to acquire and
operate the same; provided, however, that the Company hereby
covenants and agrees that, upon any such consolidation, merger (where the
Company is not the surviving corporation), sale, conveyance, transfer or other
disposition, the due and punctual payment of the principal of (and premium, if
any) and interest on all of the Debentures in accordance with their terms,
according to their tenor, and the due and punctual performance and observance
of all the covenants and conditions of this Indenture to be kept or performed
by the Company, shall be expressly assumed by supplemental indenture
satisfactory in form to the Trustee executed and delivered to the Trustee by
the entity formed by such consolidation, or into which the Company shall have
been merged, or by the entity which shall have acquired such property, and further
provided that immediately upon such transaction and succession, there
shall not occur or be continuing any Event of Default, or any event which with
giving of notice or lapse of time or both would be an Event of Default.

 

37

 

Section 11.02 Successor Entity to be Substituted.

 

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

 

Notwithstanding
anything to the contrary contained herein, upon the effectiveness of any such
consolidation, merger, sale, conveyance, transfer or other disposition and of
the assumption by the successor entity, by supplemental indenture, in
accordance with Section 11.01, of the due and punctual payment of the
principal of and premium, if any, and interest on all of the Debentures and the
due and punctual performance and observance of all of the covenants and
conditions of this Indenture to be performed or observed by the Company, then
this Indenture and the obligations of the Company (and any successor)
hereunder, shall rank pari passu in all respects with any debt securities (or
guarantees in respect thereof) issued by such successor corporation on, prior
to or following the date of such succession, to any trust, or a trustee of a
trust, partnership or other entity affiliated with the successor corporation
that is, directly or indirectly, a finance subsidiary (as that term is defined
in Section 3a-5 of the Investment Company Act of 1940) or other financing
vehicle of the successor entity or any subsidiary thereof, in connection with
the issuance by that entity of preferred securities or other securities that
are eligible to qualify as Tier 1 capital (or its then equivalent) for the
successor entity under the capital adequacy guidelines of the Federal Reserve,
or that would so qualify but for limitations on the amount of such securities
includable in Tier 1 capital under such guidelines.

 

Section 11.03 Opinion of Counsel to be Given to Trustee.

 

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

 

ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 12.01 Discharge of Indenture.

 

When
(a) the Company shall deliver to the Trustee for cancellation all
Debentures theretofore authenticated (other than any Debentures which shall
have been destroyed, lost or stolen and which shall have been replaced or paid
as provided in Section 2.06) and not theretofore canceled, or (b) all
the Debentures not theretofore canceled or delivered to the Trustee for
cancellation shall have become due and payable, or are by their terms to become
due and payable within one year or are to be called for redemption within one
year under arrangements satisfactory to the 

 

38

 

Trustee
for the giving of notice of redemption, and the Company shall deposit with the
Trustee, in trust, funds, which shall be immediately due and payable,
sufficient to pay at maturity or upon redemption all of the Debentures (other
than any Debentures which shall have been destroyed, lost or stolen and which
shall have been replaced or paid as provided in Section 2.06) not
theretofore canceled or delivered to the Trustee for cancellation, including
principal and premium, if any, and interest due or to become due to the
Maturity Date, any Optional Redemption Date or the Special Redemption Date, as
the case may be, but excluding, however, the amount of any moneys for the
payment of principal of and premium, if any, or interest on the Debentures (1) theretofore
repaid to the Company in accordance with the provisions of Section 12.04,
or (2) paid to any state or to the District of Columbia pursuant to its
unclaimed property or similar laws, and if in the case of either clause (a) or
(b) above the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect except for the provisions of Sections 2.05, 2.06, 2.08, 3.01,
3.02, 3.04, 6.06, 6.09 and 12.04 hereof, which shall survive until such
Debentures shall mature or are redeemed, as the case may be, and are paid in
full. Thereafter, Sections 6.06 and 12.04 shall survive, and the Trustee, on
demand of the Company accompanied by an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been complied
with, and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging this Indenture, the
Company, however, hereby agreeing to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred by the Trustee in
connection with this Indenture or the Debentures.

 

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

 

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

 

Section 12.03 Paying Agent to Repay Moneys Held.

 

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

 

Section 12.04 Return of Unclaimed Moneys.

 

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

 

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

 

Section 13.01 Indenture and Debentures Solely Corporate
Obligations.

 

No recourse for the payment of the principal of or premium, if any, or
interest on any Debenture, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture, or
in any such Debenture, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder,
officer, director, employee or agent, as such, past, present or future, of the
Company or of any predecessor or successor entity of the Company, either directly
or through the Company or any successor entity of the Company, whether by
virtue of any constitution, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it 

 

39

 

being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Debentures.

 

ARTICLE XIV

MISCELLANEOUS PROVISIONS

 

Section 14.01 Successors.

 

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

 

Section 14.02 Official Acts by Successor Entity.

 

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

 

Section 14.03 Surrender of Company Powers.

 

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

 

Section 14.04 Addresses for Notices, etc.

 

Any notice or
demand which by any provision of this Indenture is required or permitted to be
given or served by the Trustee or by the Securityholders on the Company may be
given or served in writing by being deposited postage prepaid by registered or
certified mail in a post office letter box addressed (until another address is
filed by the Company with the Trustee for such purpose)

 

	
  to the
  Company at:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  14201
  Sullyfield Circle

  	
   

  	
   

  
	
  Suite 500

  	
   

  	
   

  
	
  Chantilly,
  Virginia 20151

  	
   

  	
   

  
	
  Attention:
  William K. Beauchesne

  	
   

  	
   

  
	
  Telecopy:
  (703) 633-6157

  	
   

  	
   

  
	
  Telephone:
  (703) 633-6120

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Noel M.
  Gruber, Esquire

  	
   

  	
   

  
	
  4701
  Sangamore Road

  	
   

  	
   

  
	
  Suite P-15

  	
   

  	
   

  
	
  Bethesda,
  Maryland 20816

  	
   

  	
   

  
	
  Telecopy:
  (301) 229-2443

  	
   

  	
   

  
	
  Telephone:
  (301) 229-3400

  	
   

  	
   

  

 

Any notice,
direction, request or demand by any Securityholder or the Company to or upon
the Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the office of Wilmington Trust Company
at:

 

40

 

	
  Wilmington
  Trust Company

  	
   

  	
   

  
	
  Rodney
  Square North

  	
   

  	
   

  
	
  1100
  North Market Street

  	
   

  	
   

  
	
  Wilmington,
  Delaware 19890-0001

  	
   

  	
   

  
	
  Attention:
  Corporate Capital Markets

  	
   

  	
   

  
	
  Telecopy:
  (302) 636-4140

  	
   

  	
   

  
	
  Telephone: (302) 651-1000

  	
   

  	
   

  

 

Section 14.05 Governing Law.

 

This Indenture and the Debentures shall each be governed by, and
construed in accordance with, the laws of the State of New York, without regard
to conflict of laws principles of said state.

 

Section 14.06 Evidence of Compliance with Conditions Precedent.

 

Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee such certificates and opinions as may be requested by the Trustee
or required under the Trust Indenture Act (applied as if this Indenture were
subject to the Trust Indenture Act). Each such certificate or opinion shall be
given in the form of an Officers’ Certificate, if to be given by an officer of
the Company, or an Opinion of Counsel, if to be given by Counsel, and shall comply
with the requirements of the Trust Indenture Act and any other requirements set
forth in this Indenture.

 

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

 

Section 14.07 Business Day Convention.

 

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

 

Section 14.08 Table of Contents, Headings, etc.

 

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

 

Section 14.09 Execution in Counterparts.

 

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

 

Section 14.10 Separability.

 

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

 

41

 

Section 14.11 Assignment.

 

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

 

Section 14.12 Acknowledgment of Rights.

 

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

 

Section 14.13                          Applicability of
the Trust Indenture Act.

 

This Indenture is not being qualified under and is not governed by the
Trust Indenture Act; provided, however, certain provisions of the Trust
Indenture Act are being referred to or incorporated herein by reference solely
to the extent specifically provided herein, and no other provisions of the
Trust Indenture Act, or duties or obligations thereunder, are intended to be
part of this Indenture.

 

ARTICLE XV

SUBORDINATION OF DEBENTURES

 

Section 15.01 Agreement to Subordinate.

 

The Company covenants and agrees, and each holder of Debentures issued
hereunder by such holder’s acceptance thereof likewise covenants and agrees,
that all Debentures shall be issued subject to the provisions of this Article XV;
and each holder of a Debenture, whether upon original issue or upon transfer or
assignment thereof, accepts and agrees to be bound by such provisions.

 

The payment by the Company of the principal of, and premium, if any,
and interest on all Debentures shall, to the extent and in the manner
hereinafter set forth, be subordinated and junior in right of payment to the
prior payment in full of all Senior Indebtedness of the Company, whether
outstanding at the date of this Indenture or thereafter incurred; provided,
however, that the Debentures shall rank pari
passu in all material respects, including in right of payment, with
any indebtedness, liabilities or obligations of the Company, or any Subsidiary
of the Company, under debt securities under any indenture outstanding as of the
date hereof (or guarantees in respect of debt securities) issued to any trust,
or a trustee of a trust, partnership or other entity affiliated with the
Company that is, directly or indirectly, a finance subsidiary (as such term is
defined in Rule 3a-5 under the Investment Company Act of 1940) or other
financing vehicle of the Company or any Subsidiary of the Company in connection
with the issuance by that entity of preferred securities or other securities
that are eligible to qualify for Tier 1 capital treatment (or its then
equivalent) for purposes of the capital adequacy guidelines of the Federal
Reserve, as then in effect and applicable to the Company, without reference to
any limitation on the ability to treat such securities as Tier 1 capital as a
result of having cumulative preferred stock, minority interests in consolidated
subsidiaries, or any 

 

42

 

other
class of security or interest which the Federal Reserve now or may hereafter
accord Tier 1 capital treatment in excess of the amount which may qualify for
treatment as Tier 1 capital under applicable capital adequacy guidelines,
including but not limited to the debt securities and related guaranties
identified in the last sentence of the definition of Senior Indebtedness.

 

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

 

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

 

Section 15.02 Default on Senior Indebtedness.

 

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

 

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

 

Section 15.03 Liquidation; Dissolution; Bankruptcy.

 

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

 

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

 

43

 

Senior
Indebtedness may have been issued, as their respective interests may appear, as
calculated by the Company, for application to the payment of all Senior
Indebtedness of the Company remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the benefit
of the holders of such Senior Indebtedness.

 

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

 

Section 15.04 Subrogation.

 

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

 

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

 

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

 

44

 

Section 15.05 Trustee to Effectuate Subordination.

 

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

 

Section 15.06 Notice by the Company.

 

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

 

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

 

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

 

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

 

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

 

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

 

45

 

Section 15.08 Subordination May Not Be Impaired.

 

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

 

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

 

[Signatures appear on the following page]

 

46

 

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

 

 

	
   

  	
  VIRGINIA
  COMMERCE BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Peter A. Converse

  
	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON
  TRUST COMPANY

  
	
   

  	
  AS
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

47

 

	
   

  	
   

  	
  Annex A

  
	
   

  	
   

  	
   

  
	
  NO:

  	
  $

  	
   

  
	
   

  	
   

  	
   

  
	
  CUSIP
  NO:

  	
   

  	
   

  

 

FIXED
RATE JUNIOR SUBORDINATED DEBENTURE

VIRGINIA
COMMERCE BANCORP, INC.

 

THIS SECURITY IS NOT A
SAVINGS ACCOUNT OR DEPOSIT AND IT IS NOT INSURED BY THE UNITED STATES OR ANY
AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION.

 

[THE HOLDER OF THIS SECURITY
BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN
EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS
INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO
PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THE
SECURITIES OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE
FOR 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 IS NOT
PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH
RESPECT TO SUCH PURCHASE OR HOLDING.  ANY
PURCHASER OR HOLDER OF THE SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO
HAVE REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS
NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF
ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A
TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN,
OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR
PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT RESULT IN A
PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.]

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE
COMPANY, (B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”),
TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF SUCH A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF
RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,” FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (D) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (C) OR (D) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION 

 

 

AND/OR
OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY
OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY BY
ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

 

THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND
WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS SECURITY
UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT.

 

[THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

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

 

A-2

 

Fixed
Rate Junior Subordinated Debenture

 

of

 

VIRGINIA
COMMERCE BANCORP, INC.

 

Virginia Commerce Bancorp, Inc.,
a Virginia corporation (the “Company” which term includes any successor Person
under the Indenture hereinafter referred to), for value received promises to
pay to
                                          
or registered assigns, the principal sum of
                                    
dollars
($                    )
on September 30, 2038, and to pay interest on said principal sum from
                ,
2008, or from the most recent Interest Payment Date (as defined below) to which
interest has been paid or duly provided for, quarterly (subject to deferral as
set forth herein) in arrears on the thirtieth (30th) day of March,
June, September and December of each year or if such day is not a
Business Day, then the next succeeding Business Day (each such date, an “Interest
Payment Date”), commencing on the Interest Payment Date in December 2008,
at an annual rate equal to 10.20% beginning on (and including) the date of
original issuance and until the principal hereof is paid or duly provided for
or made available for payment, and on any overdue principal and (without
duplication and to the extent that payment of such interest is enforceable
under applicable law) on any overdue installment of interest (including
Additional Interest) at the Interest Rate, compounded quarterly, from the dates
such amounts are due until they are paid or made available for payment.  The amount of interest payable will be
computed on the basis of a 360-day year of twelve 30-day months.  The interest installment so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Debenture
(or one or more Predecessor Securities) is registered at the close of business
on the regular record date for such interest installment, which shall be
fifteen days prior to the day on which the relevant Interest Payment Date
occurs.  Any such interest installment not
so punctually paid or duly provided for shall forthwith cease to be payable to
the Holder on such regular record date and may be paid to the Person in whose
name this Debenture (or one or more Predecessor Securities) is registered at
the close of business on a special record date.

 

The principal of and
interest on this Debenture shall be payable at the office or agency of the
Trustee (or other paying agent appointed by the Company) maintained for that
purpose in any coin or currency of the United States of America that at the
time of payment is legal tender for payment of public and private debts; provided,
however, that payment of interest may be made by check mailed to the
registered holder at such address as shall appear in the Debenture Register if
a request for a wire transfer by such holder has not been received by the
Company or by wire transfer to an account appropriately designated by the
Holder hereof.  Notwithstanding the
foregoing, so long as the holder of this Debenture is the Institutional Trustee,
the payment of the principal of and interest on this Debenture will be made in
immediately available funds at such place and to such account as may be
designated by the Trustee.

 

So long as no Acceleration
Event of Default has occurred and is continuing, the Company shall have the
right, from time to time, and without causing an Event of Default, to defer
payments of interest on the Debentures by extending the interest payment period
on the Debentures at any time and from time to time during the term of the
Debentures, for up to 20 consecutive quarterly periods (each such extended
interest payment period, an “Extension Period”), during which Extension Period
no interest (including Additional Interest) shall be due and payable (except
any Additional Amounts that may be due and payable). No Extension Period may
end on a date other than an Interest Payment Date.  During an Extension Period, interest will
continue to accrue on the Debentures, and interest on such accrued interest
will accrue at an annual rate equal to the Interest Rate, compounded quarterly
from the date such interest would have been payable were it not for the
Extension Period, to the extent permitted by law (such interest referred to
herein as “Additional Interest”).  At the
end of any such Extension Period the Company shall pay all interest then
accrued and unpaid on the Debentures (together with Additional 

 

A-3

 

Interest
thereon); provided, however, that no Extension Period may extend
beyond the Maturity Date; provided  further, however, that
during any such Extension Period, the Company shall not and shall not permit
any Subsidiary to engage in any of the activities or transactions described on
the reverse side hereof and Section 3.8 of the Indenture. Prior to the
termination of any Extension Period, the Company may further extend such
period, provided that such period together with all such previous and further
consecutive extensions thereof shall not exceed 20 consecutive quarterly
periods, or extend beyond the Maturity Date. 
Upon the termination of any Extension Period and upon the payment of all
accrued and unpaid interest and Additional Interest, the Company may commence a
new Extension Period, subject to the foregoing requirements.  No interest or Additional Interest shall be
due and payable during an Extension Period, except at the end thereof, but each
installment of interest that would otherwise have been due and payable during
such Extension Period shall bear Additional Interest.  The Company must give the Trustee notice of
its election to begin or extend an Extension Period by the close of business at
least 15 Business Days prior to the Interest Payment Date with respect to which
interest on the Debentures would have been payable except for the election to
begin or extend such Extension Period.

 

The indebtedness evidenced
by this Debenture is, to the extent provided in the Indenture, subordinate and
junior in right of payment to the prior payment in full of all Senior
Indebtedness, and this Debenture is issued subject to the provisions of the
Indenture with respect thereto.  Each
holder of this Debenture, by accepting the same, (a) agrees to and shall
be bound by such provisions, (b) authorizes and directs the Trustee on his or
her behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination so provided and (c) appoints
the Trustee his or her attorney-in-fact for any and all such purposes.  Each holder hereof, by his or her acceptance
hereof, hereby waives all notice of the acceptance of the subordination
provisions contained herein and in the Indenture by each holder of Senior
Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.

 

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

 

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

 

A-4

 

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

 

	
   

  	
  VIRGINIA COMMERCE BANCORP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-5

 

CERTIFICATE
OF AUTHENTICATION

 

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

 

	
   

  	
  WILMINGTON TRUST COMPANY, not in its

  individual capacity but solely as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  

 

A-6

 

REVERSE OF DEBENTURE

 

This Debenture is one of the fixed rate junior subordinated deferrable interest
debentures of the Company, all issued or to be issued under and pursuant to the
Indenture dated as of
                ,
2008 (the “Indenture”), duly executed and delivered between the Company and the
Trustee, to which Indenture reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Company and the holders of the Debentures.  The Debentures are limited in aggregate principal
amount as specified in the Indenture.

 

Upon the occurrence and continuation of a Special Event prior to the
Interest Payment Date in September 2013, the Company shall have the right
to redeem the Debentures in whole, but not in part, at any time, within 90 days
following the occurrence of such Special Event, at the Special Redemption
Price.

 

In addition, the Company shall have the right to redeem the Debentures,
in whole or in part, but in all cases in a principal amount with integral
multiples of $1,000.00, on any Interest Payment Date on or after the Interest
Payment Date in September 2013, at the Optional Redemption Price.

 

Prior to 10:00 a.m. New York City time on the Optional Redemption
Date or Special Redemption Date, as applicable, the Company will deposit with
the Trustee or with one or more paying agents an amount of money sufficient to
redeem on the Optional Redemption Date or the Special Redemption Date, as
applicable, all the Debentures so called for redemption at the appropriate
Optional Redemption Price or Special Redemption Price.

 

The Company will give the Trustee notice not less than 45 nor more than
75 days, respectively, prior to the Optional Redemption Date or Special
Redemption Date, as applicable, as to the aggregate principal amount of
Debentures to be redeemed and the Trustee shall select, in such manner as in
its sole discretion it shall deem appropriate and fair, the Debentures or
portions thereof (in integral multiples of $1,000.00) to be redeemed.

 

Notwithstanding the foregoing, any redemption of Debentures by the Company
shall be subject to the receipt of any and all required regulatory approvals.

 

In case an Acceleration Event of Default shall have occurred and be
continuing, upon demand of the Trustee, the principal of all of the Debentures
shall become due and payable in the manner, with the effect and subject to the
conditions provided in the Indenture.

 

The Indenture contains provisions permitting the Company and the
Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Debentures at the time outstanding, to
execute supplemental indentures for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental indenture or of modifying in any manner the rights of
the holders of the Debentures; provided, however, that no such
supplemental indenture shall without the consent of the holders of each
Debenture then outstanding and affected thereby (i) change the fixed
maturity of any Debenture, or reduce the principal amount thereof or any
premium thereon, or reduce the rate or extend the time of payment of interest
thereon, or reduce any amount payable on redemption thereof or make the
principal thereof or any interest or premium thereon payable in any coin or
currency other than that provided in the Debentures, or impair or affect the
right of any Securityholder to institute suit for payment thereof or impair the
right of repayment, if any, at the option of the holder, or (ii) reduce
the aforesaid percentage of Debentures the holders of which are required to
consent to any such supplemental indenture.

 

The Indenture also contains provisions permitting the holders of a
majority in aggregate principal amount of the Debentures at the time outstanding
on behalf of the holders of all of the Debentures to waive (or modify any
previously granted waiver of) any past default or Event of Default, and its
consequences, except a default (a) in the payment of principal of,
premium, if any, or interest on any of the Debentures, (b) in respect of
covenants or provisions hereof or of the Indenture which cannot be modified or
amended without the consent of the holder of each Debenture affected, or (c) in
respect of the covenants contained in Section 3.09 of the Indenture; provided,
however, that if the Debentures are held by the Trust or a trustee of
such trust, such waiver or modification to such waiver shall not be effective
until the holders of a majority in liquidation amount of Preferred Securities
of the Trust shall have consented to such waiver or modification to such
waiver, provided, further, that if the consent of the holder of
each outstanding Debenture is required, such waiver shall not be effective
until each holder of the Preferred Securities of the Trust shall have consented
to such waiver.  Upon any such waiver,
the default covered thereby shall be deemed to be cured for all purposes of the
Indenture and the Company, the Trustee and the holders of the Debentures shall
be restored to their former positions and rights hereunder, respectively; but
no such waiver shall extend to any subsequent or other default or Event of
Default or impair any right consequent thereon. 
Whenever any default or Event of Default hereunder shall have been
waived as permitted by the Indenture, said default or Event of Default shall
for all purposes of the Debentures and the Indenture be deemed to have been
cured and to be not continuing.

 

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

 

The
Company has agreed that if Debentures are initially issued to the Trust or a
trustee of such Trust in connection with the issuance of Preferred Securities
by the Trust (regardless of whether Debentures continue to be held by such Trust)
and (i) there shall have occurred and be continuing an Event of Default, (ii) the
Company shall be in default with respect to its payment of any obligations
under the Preferred Securities Guarantee, or (iii) the Company shall have
given notice of its election to defer payments of interest on the Debentures by
extending the interest payment period as provided herein and such Extension
Period, or any extension thereof, shall be continuing, then the Company shall
not and shall not allow any Subsidiary of the Company to, (x) declare or
pay any dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Company’s capital stock or its
Subsidiary’s capital stock (other than payments of dividends or 

 

A-7

 

distributions
to the Company or payments of dividends from direct or indirect subsidiaries of
the Company to their parent corporations, which also shall be direct or
indirect subsidiaries of the Company) or make any guarantee payments with
respect to the foregoing or (y) make any payment of principal of or
interest or premium, if any, on or repay, repurchase or redeem any debt
securities of the Company or any Subsidiary that rank pari passu
in all respects with or junior in interest to the Debentures (other than, with
respect to clauses (x) and (y) above, (1) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, in connection with a dividend reinvestment or
stockholder stock purchase plan or in connection with the issuance of capital
stock of the Company (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into
prior to the applicable Extension Period, Default or Event of Default, (2) as
a result of any exchange or conversion of any class or series of the Company’s
capital stock (or any capital stock of a Subsidiary of the Company) for any
class or series of the Company’s capital stock or of any class or series of the
Company’s indebtedness for any class or series of the Company’s capital stock, (3) the
purchase of fractional interests in shares of the Company’s capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (4) any declaration of a dividend
in connection with any stockholders’ rights plan, or the issuance of rights,
stock or other property under any stockholders’ rights plan, or the redemption
or repurchase of rights pursuant thereto, (5) any dividend in the form of
stock, warrants, options or other rights where the dividend stock or the stock
issuable upon exercise of such warrants, options or other rights is the same
stock as that on which the dividend is being paid or ranks pari passu with or
junior to such stock and any cash payments in lieu of fractional shares issued
in connection therewith, (6) a dividend or distribution on, a redemption,
purchase or acquisition of, or a liquidation payment with respect to equity
securities of an Insured Depository Institution subsidiary, or (7) payments
under the Preferred Securities Guarantee)

 

The Debentures are issuable only in registered, certificated form
without coupons and in minimum denominations of $1,000.00 and any multiple of
$1,000.00 in excess thereof.  As provided
in the Indenture and subject to the transfer restrictions and limitations as
may be contained herein and therein from time to time, this Debenture is
transferable by the holder hereof on the Debenture Register of the
Company.  Upon due presentment for registration
of transfer of any Debenture at the Principal Office of the Trustee or at any
office or agency of the Company maintained for such purpose as provided in Section 3.02
of the Indenture, the Company shall execute, the Company or the Trustee shall
register and the Trustee or the Authenticating Agent shall authenticate and
make available for delivery in the name of the transferee or transferees a new
Debenture for a like aggregate principal amount.  All Debentures presented for registration of
transfer or for exchange or payment shall (if so required by the Company or the
Trustee or the Authenticating Agent) be duly endorsed by, or be accompanied by
a written instrument or instruments of transfer in form satisfactory to, the
Company and the Trustee or the Authenticating Agent duly executed by the holder
or his attorney duly authorized in writing. 
No service charge shall be made for any exchange or registration of
transfer of Debentures, but the Company or the Trustee may require payment of a
sum sufficient to cover any tax, fee or other governmental charge that may be
imposed in connection therewith.

 

Prior to due presentment for registration of transfer of any Debenture,
the Company, the Trustee, any Authenticating Agent, any paying agent, any
transfer agent and any Debenture registrar may deem the Person in whose name
such Debenture shall be registered upon the Debenture Register to be, and may
treat him as, the absolute owner of such Debenture (whether or not such
Debenture shall be overdue) for the purpose of receiving payment of or on account
of the principal of, premium, if any, and interest on such Debenture and for
all other purposes; and neither the Company nor the Trustee nor any
Authenticating Agent nor any paying agent nor any transfer agent nor any
Debenture registrar shall be affected by any notice to the contrary.  All such payments so made to any holder for
the time being or upon his order shall be valid, and, to the extent of the sum
or sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon any such Debenture.

 

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

 

Capitalized terms used and
not defined in this Debenture shall have the meanings assigned in the Indenture
dated as of the date of original issuance of this Debenture between the Trustee
and the Company.

 

THE INDENTURE AND THE DEBENTURES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES THEREOF.

 

A-8

 

Annex B

 

FORM OF
CERTIFICATE OF OFFICER OF THE COMPANY

 

Pursuant to Section 3.05 of the
Indenture, dated as of
                    ,
2008 (as amended or supplemented from time to time, the “Indenture”), between
Virginia Commerce Bancorp, Inc., as issuer (the “Company”), and Wilmington
Trust Company, as trustee, the undersigned certifies that he/she is a [principal
executive officer, principal financial officer or principal accounting officer]
of the Company and in the course of the performance by the undersigned of
his/her duties as an officer of the Company, the undersigned would normally
have knowledge of any default by the Company in the performance of any
covenants contained in the Indenture, and the undersigned hereby further
certifies that he/she has no knowledge of any default for the fiscal year
ending on                     ,
20       [, except as follows: specify each such default and the nature thereof].

 

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

 

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

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 4.2

 

AMENDED AND RESTATED DECLARATION OF TRUST

Among

VIRGINIA COMMERCE BANCORP, INC.

as Sponsor

WILMINGTON TRUST COMPANY,

as Trustee

and

 

THE ADMINISTRATORS NAMED HEREIN

Dated as of September 24, 2008

 

VCBI CAPITAL TRUST IV

 

 

TABLE OF CONTENTS

 

	
  Article I
  DEFINED TERMS

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article II
  CONTINUATION OF THE TRUST

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Name

  	
   

  	
  7

  
	
  Section 2.2

  	
   

  	
  Office
  of the Delaware Trustee; Principal Place of Business

  	
   

  	
  8

  
	
  Section 2.3

  	
   

  	
  Initial
  Contribution of Trust Property; Organizational Expenses

  	
   

  	
  8

  
	
  Section 2.4

  	
   

  	
  Issuance
  of the Preferred Securities

  	
   

  	
  8

  
	
  Section 2.5

  	
   

  	
  Issuance
  of the Common Securities; Subscription and Purchase of Debentures

  	
   

  	
  8

  
	
  Section 2.6

  	
   

  	
  Continuation
  of Trust

  	
   

  	
  8

  
	
  Section 2.7

  	
   

  	
  Authorization
  to Enter into Certain Transactions

  	
   

  	
  9

  
	
  Section 2.8

  	
   

  	
  Assets
  of Trust

  	
   

  	
  11

  
	
  Section 2.9

  	
   

  	
  Title
  to Trust Property

  	
   

  	
  11

  
	
  Section 2.10

  	
   

  	
  Liability
  of the Sponsor for Trust Expenses

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article III
  PAYMENT ACCOUNT

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Payment
  Account

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article IV
  DISTRIBUTIONS; REDEMPTION

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Distributions

  	
   

  	
  12

  
	
  Section 4.2

  	
   

  	
  Redemption

  	
   

  	
  13

  
	
  Section 4.3

  	
   

  	
  Subordination
  of Common Securities

  	
   

  	
  14

  
	
  Section 4.4

  	
   

  	
  Payment
  Procedures

  	
   

  	
  15

  
	
  Section 4.5

  	
   

  	
  Tax
  Returns and Reports

  	
   

  	
  15

  
	
  Section 4.6

  	
   

  	
  Payment
  of Taxes, Duties, Etc. of the Trust

  	
   

  	
  15

  
	
  Section 4.7

  	
   

  	
  Payments
  under Indenture or Pursuant to Direct Actions

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article V
  TRUST SECURITIES CERTIFICATES

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Initial
  Ownership

  	
   

  	
  15

  
	
  Section 5.2

  	
   

  	
  The
  Trust Securities Certificates

  	
   

  	
  15

  
	
  Section 5.3

  	
   

  	
  Execution,
  Delivery and Authentication of Trust Securities Certificates

  	
   

  	
  16

  
	
  Section 5.4

  	
   

  	
  Intentionally
  Omitted

  	
   

  	
  16

  
	
  Section 5.5

  	
   

  	
  Registration
  of Transfer and Exchange of Preferred Securities Certificates

  	
   

  	
  16

  
	
  Section 5.6

  	
   

  	
  Mutilated,
  Destroyed, Lost or Stolen Trust Securities Certificates

  	
   

  	
  17

  
	
  Section 5.7

  	
   

  	
  Persons
  Deemed Holders

  	
   

  	
  17

  
	
  Section 5.8

  	
   

  	
  Access
  to List of Holders’ Names and Addresses

  	
   

  	
  17

  
	
  Section 5.9

  	
   

  	
  Maintenance
  of Office or Agency

  	
   

  	
  17

  
	
  Section 5.10

  	
   

  	
  Appointment
  of Paying Agent

  	
   

  	
  17

  
	
  Section 5.11

  	
   

  	
  Ownership
  of Common Securities by Sponsor

  	
   

  	
  18

  
	
  Section 5.12

  	
   

  	
  Intentionally
  Omitted

  	
   

  	
  18

  
	
  Section 5.13

  	
   

  	
  Rights
  of Holders; Waivers of Past Defaults

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VI
  ACTS OF HOLDERS; MEETINGS; VOTING

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  Limitations
  on Voting Rights

  	
   

  	
  20

  
	
  Section 6.2

  	
   

  	
  Notice
  of Meetings

  	
   

  	
  20

  
	
  Section 6.3

  	
   

  	
  Meetings
  of Holders of the Preferred Securities

  	
   

  	
  20

  
	
  Section 6.4

  	
   

  	
  Voting
  Rights

  	
   

  	
  21

  
	
  Section 6.5

  	
   

  	
  Proxies,
  etc.

  	
   

  	
  21

  
	
  Section 6.6

  	
   

  	
  Holder
  Action by Written Consent

  	
   

  	
  21

  
	
  Section 6.7

  	
   

  	
  Record
  Date for Voting and Other Purposes

  	
   

  	
  21

  

 

i

 

	
  Section 6.8

  	
   

  	
  Acts
  of Holders

  	
   

  	
  21

  
	
  Section 6.9

  	
   

  	
  Inspection
  of Records

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VII
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Representations
  and Warranties of the Property Trustee and the Delaware Trustee

  	
   

  	
  22

  
	
  Section 7.2

  	
   

  	
  Representations
  and Warranties of Sponsor

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article VIII
  THE TRUSTEES

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Certain
  Duties and Responsibilities

  	
   

  	
  24

  
	
  Section 8.2

  	
   

  	
  Certain
  Notices

  	
   

  	
  25

  
	
  Section 8.3

  	
   

  	
  Certain
  Rights of Property Trustee

  	
   

  	
  25

  
	
  Section 8.4

  	
   

  	
  Not
  Responsible for Recitals or Issuance of Securities

  	
   

  	
  27

  
	
  Section 8.5

  	
   

  	
  May Hold
  Securities

  	
   

  	
  27

  
	
  Section 8.6

  	
   

  	
  Compensation;
  Indemnity; Fees

  	
   

  	
  27

  
	
  Section 8.7

  	
   

  	
  Corporate
  Property Trustee Required; Eligibility of Trustees

  	
   

  	
  28

  
	
  Section 8.8

  	
   

  	
  Intentionally
  Omitted

  	
   

  	
  28

  
	
  Section 8.9

  	
   

  	
  Co-Trustees
  and Separate Trustee

  	
   

  	
  28

  
	
  Section 8.10

  	
   

  	
  Resignation
  and Removal; Appointment of Successor

  	
   

  	
  29

  
	
  Section 8.11

  	
   

  	
  Acceptance
  of Appointment by Successor

  	
   

  	
  30

  
	
  Section 8.12

  	
   

  	
  Merger,
  Conversion, Consolidation or Succession to Business

  	
   

  	
  31

  
	
  Section 8.13

  	
   

  	
  Intentionally
  Omitted

  	
   

  	
  31

  
	
  Section 8.14

  	
   

  	
  Property
  Trustee May File Proofs of Claim

  	
   

  	
  31

  
	
  Section 8.15

  	
   

  	
  Reports
  by Property Trustee

  	
   

  	
  32

  
	
  Section 8.16

  	
   

  	
  Reports
  to the Property Trustee

  	
   

  	
  32

  
	
  Section 8.17

  	
   

  	
  Evidence
  of Compliance with Conditions Precedent

  	
   

  	
  32

  
	
  Section 8.18

  	
   

  	
  Number
  of Trustees

  	
   

  	
  32

  
	
  Section 8.19

  	
   

  	
  Delegation
  of Power

  	
   

  	
  33

  
	
  Section 8.20

  	
   

  	
  Appointment
  of Administrators

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article IX
  TERMINATION, LIQUIDATION AND MERGER

  	
   

  	
   

  
	
  Section 9.1

  	
   

  	
  Dissolution
  Upon Expiration Date

  	
   

  	
  33

  
	
  Section 9.2

  	
   

  	
  Early
  Dissolution

  	
   

  	
  33

  
	
  Section 9.3

  	
   

  	
  Termination

  	
   

  	
  34

  
	
  Section 9.4

  	
   

  	
  Liquidation

  	
   

  	
  34

  
	
  Section 9.5

  	
   

  	
  Mergers,
  Consolidations, Amalgamations or Replacements of Trust

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Article X
  MISCELLANEOUS PROVISIONS

  	
   

  	
   

  
	
  Section 10.1

  	
   

  	
  Limitation
  of Rights of Holders

  	
   

  	
  36

  
	
  Section 10.2

  	
   

  	
  Amendment

  	
   

  	
  36

  
	
  Section 10.3

  	
   

  	
  Separability

  	
   

  	
  37

  
	
  Section 10.4

  	
   

  	
  Governing
  Law

  	
   

  	
  37

  
	
  Section 10.5

  	
   

  	
  Payments
  Due on Non-Business Day

  	
   

  	
  37

  
	
  Section 10.6

  	
   

  	
  Successors

  	
   

  	
  37

  
	
  Section 10.7

  	
   

  	
  Headings

  	
   

  	
  37

  
	
  Section 10.8

  	
   

  	
  Reports,
  Notices and Demands

  	
   

  	
  37

  
	
  Section 10.9

  	
   

  	
  Agreement
  Not to Petition

  	
   

  	
  38

  
	
  Section 10.10

  	
   

  	
  Applicability
  of the Trust Indenture Act

  	
   

  	
  38

  
	
  Section 10.11

  	
   

  	
  Acceptance
  of Terms of Declaration, Guarantee Agreement and Indenture

  	
   

  	
  38

  
	
  Section 10.12

  	
   

  	
  Counterparts

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of
  Common Securities Certificate

  	
   

  	
  A-1

  
	
  Exhibit B

  	
   

  	
  Form of
  Preferred Securities Certificate

  	
   

  	
  B-1

  

 

ii

 

AMENDED
AND RESTATED DECLARATION OF TRUST, dated as of September 24, 2008, among
VIRGINIA COMMERCE BANCORP, INC., a Virginia corporation (including any
successors or assigns, the “Sponsor”),
WILMINGTON TRUST COMPANY, as property trustee (in such capacity, the “Property
Trustee”), WILMINGTON TRUST COMPANY, as Delaware trustee, Peter A. Converse, an
individual, William K. Beauchesne, an individual, and Jennifer Manning, an
individual (each an “Administrator”
and collectively the “Administrators”)
(the Property Trustee, the Delaware Trustee and the Administrators being
referred to collectively as the “Trustees” and individually as “Trustee”), and
the several Holders, as hereinafter defined.

 

W I T N E S S E T H

 

WHEREAS,
the Sponsor and the Delaware Trustee have heretofore duly declared and
established a statutory trust under the name “VCBI Capital Trust IV” pursuant
to the Delaware Statutory Trust Act by entering into the Declaration of Trust,
dated as of September 11, 2008 (the “Original Declaration”), and by the execution and filing by the
Delaware Trustee with the Secretary of State of the State of Delaware of the
Certificate of Trust, filed on September 11, 2008;

 

WHEREAS, the parties hereto desire to amend and restate the Original
Declaration in its entirety as set forth herein to provide for, among other
things, (i) the issuance of the Common Securities by the Trust to the
Sponsor, (ii) the issuance and sale of the Preferred Securities by the
Trust pursuant to the Purchase Agreement, (iii) the acquisition by the
Trust from the Sponsor of all of the right, title and interest in the Debentures;
and (iv) the appointment of the Trustees;

 

NOW
THEREFORE, in
consideration of the premises, the agreements and obligations set forth herein
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, each party, for the benefit of the other parties
and for the benefit of the Holders, hereby amends and restates the Original
Declaration in its entirety and agrees as follows:

 

ARTICLE I

DEFINED TERMS

 

Section 1.1 Definitions.
For all purposes of this Declaration, except as otherwise expressly provided or
unless the context otherwise requires:

 

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

 

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

 

(c) all references to “the Declaration” or “this Declaration” are
to this Declaration as modified, supplemented or amended from time to time;

 

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

 

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

 

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

 

(g) all
capitalized terms used herein that are defined in the Trust Indenture Act,
either directly or by reference therein, have the meanings assigned to them
therein.

 

“Act”
has the meaning specified in Section 6.8.

 

1

 

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

 

“Additional
Interest” has the meaning set forth in Section 2.11 of the Indenture.

 

“Administrator”
means each of the Persons appointed in accordance with Section 8.20 solely
in such Person’s capacity as Administrator of the Trust and not in such Person’s
individual capacity, or any successor Administrator appointed as herein
provided.

 

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

 

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

 

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

 

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

 

“Bankruptcy
Law” has the meaning specified in the Indenture.

 

“Board
of Directors” means either the board of directors of the Sponsor or any
committee of that board duly authorized to act hereunder.

 

“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Sponsor to have been duly adopted by the Board of
Directors, or such committee of the Board of Directors or officers of the
Sponsor to which authority to act on behalf of the Board of Directors has been
delegated, and to be in full force and effect on the date of such
certification, and delivered to the Trustees.

 

“Business
Day” means any day other than a Saturday, Sunday, or any other day on which
banking institutions and trust companies in The City of New York, New York,
Wilmington, Delaware or Arlington, Virginia, are permitted or required by any
applicable law to close.

 

“Capital
Treatment Event” has the meaning specified in Section 1.01 of the
Indenture.

 

“Closing
Date” means the date of execution and delivery of this Declaration.

 

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

 

2

 

“Commission”
means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this
instrument 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
Securities Certificate” means a certificate evidencing ownership of Common
Securities, substantially in the form attached as Exhibit A.

 

“Common
Security” means a common undivided beneficial interest in assets of the Trust,
having a Liquidation Amount of $1,000.00 and having the rights provided
therefor in this Declaration, including the right to receive Distributions and
a Liquidation Distribution to the extent provided herein.

 

“Corporate
Trust Office” when used with respect to any Trustee who is not a natural
person, the principal office of such Trustee at which at any particular time
its corporate trust business is administered.

 

“Debenture
Event of Default” means any “Event of Default” specified in Section 5.01
of the Indenture.

 

“Debenture
Redemption Date” means, with respect to any Debentures to be redeemed under the
Indenture, the date fixed for redemption of such Debentures under the
Indenture.

 

“Debentures”
means the Sponsor’s 10.20% Junior Subordinated Notes due 2038, issued pursuant
to the Indenture.

 

“Debenture
Trustee” means the Person identified as the “Trustee” in the Indenture, solely
in its capacity as Trustee pursuant to the Indenture and not in its individual
capacity, or its successor in interest in such capacity, or any successor
Trustee appointed as provided in the Indenture.

 

“Declaration”
means this Amended and Restated Declaration of Trust, as the same may be
modified, amended or supplemented in accordance with the applicable provisions
hereof, including (i) all exhibits, and (ii) for all purposes of this
Declaration and any such modification, amendment or supplement.

 

“Definitive
Preferred Securities Certificates” means Preferred Securities Certificates
issued in certificated, fully registered form as provided in Section 5.2
or 5.5.

 

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

 

“Delaware
Trustee” means the Person identified as the “Delaware Trustee” in this
Declaration, solely in its capacity as Delaware Trustee of the Trust and not in
its individual capacity, or its successor in interest in such capacity, or any
successor Delaware Trustee appointed as herein provided.

 

“Distribution
Date” has the meaning specified in Section 4.1(a).

 

“Distributions”
means amounts payable in respect of the Trust Securities as provided in Section 4.1.

 

“Early
Dissolution Event” has the meaning specified in Section 9.2.

 

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

 

(a) the
occurrence of a Debenture Event of Default; or

 

3

 

(b) default
by the Trust in the payment of any Distribution when it becomes due and
payable, and continuation of such default for a period of 30 days; or

 

(c) default
by the Trust in the payment of any Redemption Price of any Trust Security when
it becomes due and payable; or

 

(d) default
in the performance, or breach, in any material respect, of any covenant or
warranty of the Trustees in this Declaration (other than those specified in
clause (b) or (c) above) and continuation of such default or breach
for a period of 30 days after there has been given, by registered or certified
mail, to the Trustees and to the Sponsor by the Holders of at least 25% in
aggregate Liquidation Amount of the Outstanding Preferred Securities a written
notice specifying such default or breach and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or

 

(e) the
occurrence of a Bankruptcy Event with respect to the Property Trustee if a
successor Property Trustee has not been appointed within 90 days thereof.

 

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

 

“Expiration
Date” has the meaning specified in Section 9.1.

 

“Federal
Reserve” means the Board of Governors of the Federal Reserve System, as from
time to time constituted, the staff thereof, or a Federal Reserve Bank, acting
through delegated authority, in each case under the rules, regulations and
policies of the Federal Reserve System,  or if at any time after the execution of this Declaration the Federal
Reserve is not existing and performing the duties now assigned to it, then the
bodies performing such duties at such time, or the Federal Reserve Bank of
Richmond, or any successor Federal Reserve Bank having primary jurisdiction
over the Sponsor.

 

“Guarantee
Agreement” means the Guarantee Agreement executed and delivered by the Sponsor
and Wilmington Trust Company, as guarantee trustee, contemporaneously with the
execution and delivery of this Declaration, for the benefit of the holders of
the Preferred Securities, as amended from time to time.

 

“Holder”
means a Person in whose name a Trust Security or Trust Securities are
registered in the Securities Register; any such Person shall be a beneficial
owner within the meaning of the Delaware Statutory Trust Act.

 

“Indenture”
means the Junior Subordinated Indenture, dated as of the date hereof, between
the Sponsor and the Debenture Trustee, as trustee, as may be amended or
supplemented from time to time.

 

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

 

“Lien”
means any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse
ownership interest, hypothecation, assignment, security interest or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever.

 

“Like
Amount” means (a) with respect to a redemption of any Trust Securities,
Trust Securities having a Liquidation Amount equal to the principal amount of
Debentures to be contemporaneously redeemed or paid at maturity in accordance
with the Indenture, the proceeds of which will be used to pay the Redemption
Price of such Trust Securities, (b) with respect to a distribution of
Debentures to Holders of Trust Securities in connection with a dissolution or
liquidation of the Trust, Debentures having a principal amount equal to the
Liquidation Amount of the Trust Securities of the Holder to whom such
Debentures are distributed, and (c) with respect to any distribution of
Additional Amounts to Holders of Trust Securities, Debentures having a
principal amount equal to the Liquidation Amount of the Trust Securities in
respect of which such distribution is made.

 

4

 

“Liquidation
Amount” means the stated amount of $1,000.00 per Trust Security.

 

“Liquidation
Date” means the date on which assets are to be distributed to Holders in
accordance with Section 9.4(a) following the dissolution of the Trust pursuant
to Section 9.1 or Section 9.2.

 

“Liquidation
Distribution” has the meaning specified in Section 9.4(d).

 

“Majority
in Liquidation Amount of the Preferred Securities” or “Majority in Liquidation
Amount of the Common Securities” means, , Preferred Securities or Common
Securities, as the case may be, representing more than 50% of the aggregate
Liquidation Amount of all then Outstanding Preferred Securities or Common
Securities, as the case may be.

 

“Officer’s Certificate” means a certificate signed by the Chairman of
the Board, the Vice Chairman, the Chief Executive Officer, the President or any
Vice President, and by the Chief Financial Officer, the Treasurer, an Assistant
Treasurer, the Comptroller, an Assistant Comptroller, the Secretary or an
Assistant Secretary of the Company, and delivered to the Property Trustee.  Any Officer’s Certificate delivered with
respect to compliance with a condition or covenant provided for in this
Guarantee shall include:

 

(a) a statement that such officer signing the Officer’s
Certificate has read the covenant or condition and the definitions relating
thereto;

 

(b) a brief statement of the nature and scope of the examination
or investigation undertaken by such officer in rendering the Officer’s
Certificate;

 

(c) a statement that such officer has made such examination or
investigation as, in such officer’s opinion, is necessary to enable such
officer to express an informed opinion as to whether or not such covenant or
condition has been complied with; and

 

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

 

“Opinion
of Counsel” means an opinion in writing signed by legal counsel, who may be
counsel to the Trust, any Trustee or the Sponsor or may be other counsel
reasonably satisfactory to the Property Trustee.

 

“Optional
Redemption Price” means, with respect to any Trust Security, the Liquidation
Amount of such Trust Security, plus accumulated and unpaid Distributions to the
Redemption Date, plus the related amount of the premium, if any, paid by the
Sponsor upon the concurrent redemption of a Like Amount of Debentures.

 

“Original
Declaration” has the meaning specified in the recitals to this Declaration.

 

“Outstanding”,
when used with respect to Trust Securities, means, as of the date of
determination, all Trust Securities theretofore executed and delivered under
this Declaration, except:

 

(a) Trust
Securities theretofore cancelled by the Property Trustee or delivered to the
Property Trustee for cancellation;

 

(b) Trust
Securities for which payment or redemption money in the necessary amount has
been theretofore deposited with the Property Trustee or any Paying Agent in
trust for the Holders of such Trust Securities; provided that, if such Trust
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Declaration; and

 

(c) Trust
Securities that have been paid or in exchange for or in lieu of which other
Trust Securities have been executed and delivered pursuant to Sections 5.5, 5.6
and 5.11;

 

5

 

provided,
however, that in determining whether the Holders of the requisite Liquidation
Amount of the Outstanding Preferred Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Preferred
Securities owned by the Sponsor, any Trustee or any Affiliate of the Sponsor or
of any Trustee shall be disregarded and deemed not to be Outstanding, except that
(a) in determining whether any Trustee shall be protected in relying upon
any such request, demand, authorization, direction, notice, consent or waiver,
only Preferred Securities that such Trustee knows to be so owned shall be so
disregarded, and (b) the foregoing shall not apply at any time when all of
the Outstanding Preferred Securities are owned by the Sponsor, one or more of
the Trustees and/or any such Affiliate. Preferred Securities so owned that have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Administrators the pledgee’s right so to
act with respect to such Preferred Securities and that the pledgee is not the
Sponsor or any Affiliate of the Sponsor.

 

“Owner”
“ means a Person in whose name a Trust Securities Certificate is registered,
such Person being a beneficial owner within the meaning of the Delaware
Statutory Trust Act

 

“Paying
Agent” means any paying agent or co-paying agent appointed pursuant to Section 5.10
and shall initially be the Property Trustee.

 

“Payment
Account” means a segregated non-interest-bearing corporate trust account
maintained by or on behalf of the Property Trustee for the benefit of the
Holders in which all amounts paid in respect of the Debentures will be held and
from which the Property Trustee, through the Paying Agent, shall make payments
to the Holders in accordance with Sections 4.1 and 4.2.

 

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

 

“Preferred
Securities Certificate” means a certificate evidencing ownership of Preferred
Securities, substantially in the form attached as Exhibit B.

 

“Preferred
Security” means a preferred undivided beneficial interest in the assets of the
Trust, having a Liquidation Amount of $1,000.00 and having the rights provided
therefor in this Declaration, including the right to receive Distributions and
a Liquidation Distribution to the extent provided herein.

 

“Property
Trustee” means the Person identified as the “Property Trustee” in the preamble
to this Declaration, solely in its capacity as Property Trustee of the Trust
and not in its individual capacity, or its successor in interest in such
capacity, or any successor Property Trustee appointed as herein provided.

 

“Purchase
Agreement” means the Purchase Agreement, dated as of September 22, 2008,
among the Trust, the Sponsor and the Purchasers named therein, as the same may
be amended from time to time.

 

“Redemption
Date” means, with respect to any Trust Security to be redeemed, the date fixed
for such redemption by or pursuant to this Declaration; provided that each
Debenture Redemption Date and the stated maturity of the Debentures shall be a
Redemption Date for a Like Amount of Trust Securities.

 

“Redemption
Price” means the Optional Redemption Price or the Special Redemption Price, as
applicable.

 

“Relevant
Trustee” has the meaning specified in Section 8.10.

 

“Responsible
Officer” means, with respect to the Property Trustee, any officer of the
Property Trustee with direct responsibility for the administration of this
Declaration, and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of that
officer’s knowledge of and familiarity with the particular subject.

 

6

 

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

 

“Securities
Register” and “Securities Registrar” have the respective meanings specified in Section 5.5.

 

“Special
Event” has the meaning specified in Section 1.01 of the Indenture.

 

“Special
Redemption Price” means, with respect to the redemption of any Debenture
following a Special Event, an amount in cash equal to 105% of the principal
amount of the Debentures if the Redemption Date occurs prior to September 30,
2009, and thereafter equal to the percentage of the principal amount of the
Debentures that is specified below for the Redemption Date, plus, in each case,
accrued and unpaid interest through the date of redemption.

 

	
  Special Redemption During the

  12 Month Period Beginning September 30,

  	
   

  	
  Percentage of Principal Amount

  	
   

  
	
  2009

  	
   

  	
  104

  	
  %

  
	
  2010

  	
   

  	
  103

  	
  %

  
	
  2011

  	
   

  	
  102

  	
  %

  
	
  2012

  	
   

  	
  101

  	
  %

  
	
  2013 and
  thereafter

  	
   

  	
  100

  	
  %

  

 

“Sponsor”
has the meaning specified in the preamble to this Declaration.

 

“Tax
Event” has the meaning specified in Section 1.01 of the Indenture.

 

“Trust”
means the Delaware statutory trust heretofore known as “VCBI Capital Trust IV,”
which was formed on September 11, 2008 under the Delaware Statutory Trust
Act pursuant to the Original Declaration and the filing of the Certificate of
Trust, and continued pursuant to this Declaration under the name “VCBI Capital
Trust IV”.

 

“Trustees”
has the meaning specified in the preamble to this Declaration.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as
of which this Declaration was executed; provided, however, that in the event
the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture
Act” means, to the extent required by any such amendment, the Trust Indenture
Act of 1939 as so amended.

 

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

 

“Trust
Securities Certificate” means any one of the Common Securities Certificates or
the Preferred Securities Certificates.

 

“Trust
Security” means the Common Securities or the Preferred Securities.

 

ARTICLE II

CONTINUATION OF THE TRUST

 

Section 2.1
Name. The trust
established under the Original Declaration under the name “VCBI Capital Trust
IV” and continued hereby shall continue to be known as “VCBI Capital Trust IV”,
as such name may be modified from time to time by the Administrators following
written notice to the Holders of Trust Securities and the other Trustees. The
Trustees may conduct the business of the Trust, make and execute contracts and
other 

 

7

 

instruments
on behalf of the Trust and sue and be sued in such name or in their own names
together with an indication of their capacities as trustees.

 

Section 2.2
Office of the Property Trustee;
Principal Place of Business. The address of the Property Trustee in
the State of Delaware is Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attn: Corporate Capital Markets, or such other address in the State of Delaware
as the Property Trustee may designate by written notice to the Holders, the
Sponsor, and the Administrators. The principal executive office of the Trust is
c/o Virginia Commerce Bancorp, Inc., 5350 Lee Highway, Arlington, VA 22207.

 

Section 2.3
Initial Contribution of Trust Property; Organizational Expenses. The
Sponsor deposited the sum of $1.00 in connection with the Original Declaration,
which constituted the initial Trust Property. The Sponsor shall pay
organizational expenses of the Trust as they arise and shall, upon request of
any Trustee, promptly reimburse such Trustee for any such expenses paid by such
Trustee. The Sponsor shall make no claim upon the Trust Property for the
payment of such expenses.

 

Section 2.4
Issuance of the Preferred Securities. The Sponsor, both on its own
behalf and on behalf of the Trust pursuant to the Original Declaration,
executed and delivered the Purchase Agreement, which action is hereby
authorized, approved, ratified and confirmed in all respects. Contemporaneously
with the execution and delivery of this Declaration, an Administrator, on
behalf of the Trust, shall manually execute in accordance with Sections 5.2,
5.3 and 8.9(a) and deliver to the Property Trustee for authentication and
following such authentication the Property Trustee shall make available for
delivery to the Purchasers, Preferred Securities Certificates, registered in
the names as set forth in Section 5.2(b), evidencing an aggregate of
25,000 Preferred Securities having an aggregate Liquidation Amount of
$25,000,000.00 against receipt of the aggregate purchase price of such
Preferred Securities of $25,000,000.00 by the Property Trustee.

 

Section 2.5
Issuance of the Common Securities; Subscription and Purchase of Debentures.
Contemporaneously with the execution and delivery of this Declaration, an
Administrator, on behalf of the Trust, shall execute in accordance with
Sections 5.2, 5.3 and 8.9(a) and deliver to the Sponsor, Common Securities
Certificates, registered in the name of the Sponsor, evidencing an aggregate of
775 Common Securities having an aggregate Liquidation Amount of $775,000.00,
against receipt of the aggregate purchase price of such Common Securities of
$775,000.00, by the Property Trustee. Contemporaneously therewith, an
Administrator, on behalf of the Trust, shall subscribe for and purchase from
the Sponsor the Debentures, registered in the name of the Property Trustee on
behalf of the Trust and having an aggregate principal amount equal to
$25,775,000.00, and, in satisfaction of the purchase price for such Debentures,
the Property Trustee, on behalf of the Trust, shall deliver to the Sponsor the
sum of $25,775,000.00 (being the sum of the amounts delivered to the Property
Trustee pursuant to (i) the second sentence of Section 2.4, and (ii) the
first sentence of this Section 2.5).

 

Section 2.6
Continuation of Trust. The exclusive purposes and functions of the Trust
are (a) to issue and sell Trust Securities and use the proceeds from such
sale to acquire the Debentures, and (b) to engage in those activities
necessary or incidental thereto. The Sponsor hereby appoints the Property
Trustee, the Delaware Trustee and the Administrators as trustees of the Trust,
to have all the rights, powers and duties to the extent set forth herein, and
the respective Trustees hereby accept such appointment. The Property Trustee
hereby declares that it will hold the Trust Property in trust upon and subject
to the conditions set forth herein for the benefit of the Trust and the
Holders. The Administrators shall have all rights, powers and duties set forth
herein and in accordance with applicable law with respect to accomplishing the
purposes of the Trust. The Delaware Trustee shall not be entitled to exercise
any powers, nor shall the Delaware Trustee have any of the duties and
responsibilities, of the Property Trustee or the Administrators set forth
herein. The Delaware Trustee shall be one of the trustees of the Trust for the
sole and limited purpose of fulfilling the requirements of Section 3807 of
the Delaware Statutory Trust Act and for taking such actions as are required to
be taken by a Delaware trustee under the Delaware Statutory Trust Act. The
Property Trustee shall, until such time as a separate Delaware Trustee may be
appointed, maintain its principal office in the State of Delaware, and
otherwise enable the Trust to fulfill the requirements of Section 3807 of
the Delaware Statutory Trust Act and shall take such actions as are required to
be taken by a Delaware trustee under the Delaware Statutory Trust Act.

 

8

 

Section 2.7
Authorization to Enter into Certain Transactions.

 

(a) The
Trustees shall conduct the affairs of the Trust in accordance with the terms of
this Declaration. Subject to the limitations set forth in paragraph (b) of
this Section, and in accordance with the following provisions (i) and
(ii), the Trustees shall have the authority to enter into all transactions and
agreements determined by the Trustees to be appropriate in exercising the
authority, express or implied, otherwise granted to the Trustees, as the case
may be, under this Declaration, and to perform all acts in furtherance thereof,
including, the following:

 

(i) As
among the Trustees, each Administrator, acting singly or collectively, shall
have the power, authority and authorization to act on behalf of the Trust with
respect to the following matters:

 

(A) the
issuance and sale of the Trust Securities;

 

(B) causing
the Trust to perform the transactions contemplated by and its obligations under
the Purchase Agreement and causing the Trust to enter into, and to execute,
deliver and perform, a subscription agreement for the Debentures, a
subscription agreement for the Common Securities, and such other agreements as
may be necessary or desirable in connection with the purposes and function of the
Trust;

 

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

 

(D) the
appointment of a Paying Agent, authenticating agent and Securities Registrar in
accordance with this Declaration;

 

(E) the
execution of the Trust Securities on behalf of the Trust in accordance with
this Declaration;

 

(F) the
execution and delivery of closing certificates, if any, pursuant to the
Purchase Agreement and application for a taxpayer identification number for the
Trust;

 

(G) to
the extent provided herein, the winding-up of the affairs of and the
liquidation of the Trust and the preparation and filing of the certificate of
cancellation with the Secretary of State of the State of Delaware;

 

(H) unless
otherwise required by the Delaware Statutory Trust Act or the Trust Indenture
Act, executing on behalf of the Trust (either acting alone or together with the
other Administrator) any documents that the Administrators have the power to
execute pursuant to this Declaration; and

 

(I) the
taking of any action incidental to the foregoing as the Trustees may from time
to time determine to be necessary or advisable to give effect to the terms of
this Declaration.

 

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

 

(A) the
establishment of the Payment Account;

 

(B) the
receipt of the Debentures;

 

(C) the
receipt of interest, principal and any other payments made in respect of the
Debentures and the holding of such amounts in the Payment Account;

 

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

 

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

 

9

 

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

 

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

 

(H) to
the extent provided in this Declaration, the winding up of the affairs of and liquidation
of the Trust;

 

(I) performing
the duties of the Property Trustee specifically set forth in this Declaration,
including authentication of the Preferred Securities Certificates as provided
in this Declaration and serving as Paying Agent;

 

(J) after
an Event of Default (other than under paragraph (b), (c), (d) or (e) of
the definition of such term if such Event of Default is by or with respect to
the Property Trustee) the taking of any action incidental to the foregoing as
the Property Trustee may from time to time determine is necessary or advisable
to give effect to the terms of this Declaration and protect and conserve the
Trust Property for the benefit of the Holders (without consideration of the
effect of any such action on any particular Holder); and

 

(K) serving
as Registrar and registering transfers of the Trust Securities in accordance
with this Declaration.

 

(b) So
long as this Declaration remains in effect, the Trust (or the Trustees acting
on behalf of the Trust) shall not undertake any business, activities or
transaction except as expressly provided herein or contemplated hereby. In
particular, the Trustees shall not (i) acquire any investments or engage
in any activities not authorized by this Declaration, (ii) sell, assign,
transfer, exchange, mortgage, pledge, set off or otherwise dispose of any of
the Trust Property or interests therein, including to Holders, except as
expressly provided herein, (iii) take any action that (in the case of the
Property Trustee or the Delaware Trustee, to the actual knowledge of a
Responsible Officer) would cause the Trust to be classified as an association
taxable as a corporation or classified as other than a grantor trust for United
States Federal income tax purposes, (iv) incur any indebtedness for borrowed
money or issue any other debt, or (v) take or consent to any action that
would result in the placement of a Lien on any of the Trust Property. The
Administrators shall defend all claims and demands of all Persons at any time
claiming any Lien on any of the Trust Property adverse to the interest of the
Trust or the Holders in their capacity as Holders.

 

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

 

(i) the
preparation by the Trust of a private placement memorandum or other offering
materials relating to the offering of the Preferred Securities, and the taking
of any action necessary or desirable to sell the Preferred Securities in a
transaction or a series of transactions pursuant thereto;

 

(ii) the
determination of the States in which to take appropriate action to exempt, or
qualify or register for sale all or part of the Preferred Securities the
Debentures and the Guarantee and the taking of any and all such acts, other
than actions that must be taken by or on behalf of the Trust, and advice to the
Trust of actions that must be taken by or on behalf of the Trust, and the
preparation for execution and filing of any documents to be executed and filed
by the Trust or on behalf of the Trust, as the Sponsor deems necessary or
advisable in order to comply with the applicable laws of any such States in
connection with the sale of the Preferred Securities;

 

(iii) the
negotiation of the terms of, and the execution and delivery of, the Purchase
Agreement providing for the sale of the Preferred Securities; and

 

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

 

10

 

(d) Notwithstanding
anything herein to the contrary, the Administrators are authorized and directed
to conduct the affairs of the Trust and to operate the Trust so that the Trust
will not be deemed to be an “investment company” required to be registered
under the Investment Company Act, and will not be taxable as a corporation or
classified as other than a grantor trust for United States Federal income tax
purposes and so that the Debentures will be treated as indebtedness of the
Sponsor for United States Federal income tax purposes. In this connection,
subject to Section 10.2, each Administrator, the Property Trustee and the
Holders of at least a Majority in Liquidation Amount of the Common Securities
are authorized to take any action, not inconsistent with applicable law, the Certificate
of Trust, or this Declaration, that such Administrator or Holders of Common
Securities determine in their discretion to be necessary or desirable for such
purposes, as long as such action does not adversely affect in any material
respect the interests of the Holders of the Outstanding Preferred Securities.
In no event shall the Administrators be liable to the Trust or the Holders for
any failure to comply with this section or Section 2.7(b) (iii) that
results from a change in law or regulation or in the interpretation by a
governmental authority thereof.

 

Section 2.8
Assets of Trust. The assets of the Trust shall consist of the Trust
Property.

 

Section 2.9
Title to Trust Property. Legal title to all Trust Property shall be
vested at all times in the Property Trustee (in its capacity as such) and shall
be held and administered by the Property Trustee in trust for the benefit of
the Trust and the Holders in accordance with this Declaration.

 

Section 2.10
Liability of the Sponsor for Trust Expenses.  As permitted under the Delaware Statutory
Trust Act, the Sponsor, as Holder of the Common Securities, and as Debenture
Issuer, shall be liable for the debts and obligations of the Trust, and shall:

 

(a) pay
all reasonable costs and expenses owing to the Debenture Trustee pursuant to Section 6.06
of the Indenture;

 

(b) be
responsible for and shall pay all debts and obligations (other than with
respect to the Trust Securities) and all costs and expenses of the Trust, the
offering, sale and issuance of the Trust Securities, the costs and expenses
(including reasonable counsel fees and expenses) of the Property Trustee, the
Delaware Trustee and the Administrators, the costs and expenses relating to the
operation of the Trust, including, without limitation, costs and expenses of
accountants, attorneys, statistical or bookkeeping services, expenses for
printing and engraving and computing or accounting equipment, Paying Agents,
Registrars, Transfer Agents, duplicating, travel and telephone and other
telecommunications expenses and costs and expenses incurred in connection with
the acquisition, financing, and disposition of Trust assets and the enforcement
by the Property Trustee of the rights of the Holders);

 

(c) pay
any and all taxes (other than United States withholding taxes attributable to
the Trust or its assets) and all liabilities, costs and expenses with respect
to such taxes of the Trust; and

 

(d) The
Sponsor’s obligations under this Section 2.10 shall be for the benefit of,
and shall be enforceable by, any Person to whom such debts, obligations, costs,
expenses and taxes are owed (a “Creditor”) whether or not such Creditor has
received notice hereof.  Any such
Creditor may enforce the Sponsor’s obligations under this Section 2.10
directly against the Sponsor and the Sponsor irrevocably waives any right or
remedy to require that any such Creditor take any action against the Trust or
any other Person before proceeding against the Sponsor.  The Sponsor agrees to execute such additional
agreements as may be necessary or desirable in order to give full effect to the
provisions of this Section 2.10.

 

ARTICLE III

PAYMENT ACCOUNT

 

Section 3.1
Payment Account.

 

(a) On
or prior to the Closing Date, the Property Trustee shall establish the Payment
Account with the Paying Agent. The Property Trustee and the Paying Agent shall
have exclusive control and sole right of withdrawal 

 

11

 

with
respect to the Payment Account for the purpose of making deposits in and
withdrawals from the Payment Account in accordance with this Declaration. All
moneys and other property deposited or held from time to time in the Payment
Account shall be held by the Property Trustee in the Payment Account for the
exclusive benefit of the Holders and for distribution as herein provided,
including (and subject to) any priority of payments provided for herein.

 

(b) The
Property Trustee shall deposit (or cause to be deposited) in the Payment
Account, promptly upon receipt, all payments of principal of or interest on,
and any other payments or proceeds with respect to, the Debentures. Amounts
held in the Payment Account shall not be invested by the Property Trustee
pending distribution thereof.

 

ARTICLE IV

DISTRIBUTIONS; REDEMPTION

 

Section 4.1
Distributions.

 

(a) The
Trust Securities represent undivided beneficial interests in the Trust
Property, and Distributions (including of Additional Amounts) will be made on
the Trust Securities at the rate and on the dates that payments of interest
(including of Additional Interest, as defined in the Indenture) are made on the
Debentures. Accordingly:

 

(i) Distributions
on the Trust Securities shall be cumulative, and will accumulate whether or not
there are funds of the Trust available for the payment of Distributions. Distributions
shall accumulate from September 24, 2008, and, except in the event (and to
the extent) that the Sponsor exercises its right to defer the payment of
interest on the Debentures pursuant to the Indenture, shall be payable
quarterly in arrears on March 30, June 30, September 30 and December 30
of each year, commencing on December 30, 2008. If any date on which a
Distribution is otherwise payable on the Trust Securities is not a Business
Day, then the payment of such Distribution shall be made on the next succeeding
day that is a Business Day, and no additional interest will accrue in respect
of such payment made on such next succeeding Business Day (each date on which
Distributions are payable in accordance with this Section 4.1(a), a “Distribution
Date”).

 

(ii) The
Trust Securities shall be entitled to Distributions payable at a rate of 10.20%
per annum of the Liquidation Amount of the Trust Securities. The amount of
Distributions payable for any period less than a full Distribution period shall
be computed on the basis of a 360-day year of twelve 30-day months and the
actual number of days elapsed in a partial month in a period. Distributions
payable for each full Distribution period will be computed by dividing the rate
per annum by four. The amount of Distributions payable for any period shall
include any Additional Interest in respect of such period.

 

(iii) Distributions
on the Trust Securities shall be made by the Paying Agent from the Payment
Account and shall be payable on each Distribution Date only to the extent that
the Trust has funds then on hand and available in the Payment Account for the
payment of such Distributions.

 

(b) Distributions
on the Trust Securities with respect to a Distribution Date shall be payable to
the Holders thereof as they appear on the Securities Register for the Trust
Securities at the close of business on the relevant record date, which shall be
the fifteenth day prior to the day on which the relevant Distribution Date
occurs without giving effect to the third sentence of Section 4.1(a)(i) (whether
or not such record date is a Business Day).
Distributions
payable on any Trust Securities that are not punctually paid on any
Distribution Date as a result of the Sponsor having failed to make an interest
payment under the Debentures will cease to be payable to the Person in whose
name such Trust Securities are registered on the relevant record date, and such
defaulted Distributions and any Additional Interest Amounts will instead be
payable to the Person in whose name such Trust Securities are registered on the
special record date, or other specified date for determining Holders entitled
to such defaulted Distribution and Additional Interest Amount, established in
the same manner, and on the same date, as such is established with respect to
the Debentures under the Indenture.

 

12

 

Section 4.2
Redemption.

 

(a) On
each Debenture Redemption Date and on the stated maturity (or any date of
principal repayment upon early maturity) of the Debentures, the Trust will be
required to redeem a Like Amount of Trust Securities at the Redemption Price.

 

(b) Notice
of redemption shall be given by the Property Trustee by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to
the Redemption Date to each Holder of Trust Securities to be redeemed, at such
Holder’s address appearing in the Security Register. All notices of redemption
shall state:

 

(i) the
Redemption Date;

 

(ii) the
Redemption Price or if the Redemption Price cannot be calculated prior to the
time the notice is required to be sent, an estimate of the Redemption Price
provided pursuant to the Indenture, as calculated by the Sponsor, together with
a statement that it is an estimate and that the actual Redemption Price will be
calculated by the Sponsor on the third Business Day prior to the Redemption
Date (and if an estimate is provided, a further notice shall be sent of the
actual Redemption Price on the date that such Redemption Price is calculated);

 

(iii) the
CUSIP number or CUSIP numbers of the Preferred Securities affected (if
applicable);

 

(iv) if
less than all the Outstanding Trust Securities are to be redeemed, the
identification and the aggregate Liquidation Amount of the particular Trust
Securities to be redeemed;

 

(v) that
on the Redemption Date the Redemption Price will become due and payable upon
each such Trust Security to be redeemed and that Distributions thereon will
cease to accumulate on and after said date, except as provided in Section 4.2(d) below;
and

 

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

 

The
Trust in issuing the Trust Securities may use “CUSIP” numbers (if then
generally in use), and, if so, the Property Trustee shall indicate the “CUSIP”
numbers of the Trust Securities in notices of redemption and related materials
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 Trust Securities or as contained in any notice of redemption and related
materials.

 

(c) The
Trust Securities (or a portion thereof) redeemed on each Redemption Date shall
be redeemed at the Redemption Price with the proceeds from the contemporaneous
redemption or repayment of Debentures in accordance with the Indenture.
Redemptions of the Trust Securities shall be made and the Redemption Price
shall be payable on each Redemption Date only to the extent that the Trust has
funds then on hand and available in the Payment Account for the payment of such
Redemption Price.

 

(d) If
the Property Trustee gives a notice of redemption in respect of any Preferred
Securities, then, by 10:00 A.M., New York City time, on the Redemption
Date, the Sponsor shall deposit sufficient funds with the Property Trustee to
pay the applicable Redemption Price.  If
such deposit has been made by such time, then by 12:00 noon, New York City
time, on the Redemption Date, the Property Trustee will irrevocably deposit with
the Paying Agent, to the extent available therefor, funds sufficient to pay the
applicable Redemption Price and will give the Paying Agent irrevocable
instructions and authority to pay the Redemption Price to the Holders of the
Preferred Securities upon surrender of their Preferred Securities Certificates.
Notwithstanding the foregoing, Distributions payable on or prior to the
Redemption Date for any Trust Securities called for redemption shall be payable
to the Holders of such Trust Securities as they appear on the Securities
Register for the Trust Securities on the relevant record dates for the related
Distribution Dates. If notice of redemption shall have been given and funds
deposited as required, then upon the date of such deposit, all rights of Holders
holding Trust Securities so called for redemption 

 

13

 

will
cease, except the right of such Holders to receive the Redemption Price and any
Distribution payable in respect of the Trust Securities on or prior to the
Redemption Date, but without interest, and, in the case of a partial
redemption, the right of such Holders to receive a new Trust Security or
Securities of authorized denominations, in aggregate Liquidation Amount equal
to the unredeemed portion of such Trust Security or Securities, and such
Securities (or portion thereof) called for redemption will cease to be
outstanding. In the event that any date on which any Redemption Price is
payable is not a Business Day, then payment of the Redemption Price payable on
such date will be made on the next succeeding day that is a Business Day
(without any interest or other payment in respect of any such delay), except
that, if such Business Day falls in the next calendar year, such payment will
be made on the immediately preceding Business Day, in each case, with the same
force and effect as if made on such date. In the event that payment of the
Redemption Price in respect of any Trust Securities called for redemption is
improperly withheld or refused and not paid either by the Trust or by the
Sponsor pursuant to the Guarantee Agreement, Distributions on such Trust
Securities (or portion thereof) will continue to accumulate, as set forth in Section 4.1,
from the Redemption Date originally established by the Trust for such Trust
Securities (or portion thereof) to the date such Redemption Price is actually
paid, in which case the actual payment date will be the date fixed for
redemption for purposes of calculating the Redemption Price.

 

(e) Subject
to Section 4.3(a), if less than all the Outstanding Trust Securities are
to be redeemed on a Redemption Date, then the aggregate Liquidation Amount of
Trust Securities to be redeemed shall be allocated pro rata to the Common
Securities and the Preferred Securities based upon the relative Liquidation
Amounts of such classes. The particular Preferred Securities to be redeemed
shall be selected on a pro rata basis based upon their respective Liquidation
Amounts not more than 60 days prior to the Redemption Date by the Property
Trustee from the Outstanding Preferred Securities not previously called for
redemption. The Property Trustee shall promptly notify the Securities Registrar
in writing of the Preferred Securities selected for redemption and, in the case
of any Preferred Securities selected for partial redemption, the Liquidation
Amount thereof to be redeemed. For all purposes of this Declaration, unless the
context otherwise requires, all provisions relating to the redemption of
Preferred Securities shall relate, in the case of any Preferred Securities
redeemed or to be redeemed only in part, to the portion of the aggregate
Liquidation Amount of Preferred Securities that has been or is to be redeemed.

 

Section 4.3
Subordination of Common Securities.

 

(a) Payment
of Distributions (including any Additional Interest) on, the Redemption Price
of, and the Liquidation Distribution in respect of the Trust Securities, as
applicable, shall be made, subject to Section 4.2(e), pro rata among the
Common Securities and the Preferred Securities based on the Liquidation Amount
of the Trust Securities; provided, however, that if on any Distribution Date,
Redemption Date or Liquidation Date any Event of Default shall have occurred
and be continuing, no payment of any Distribution (including any Additional
Interest) on, Redemption Price of, or Liquidation Distribution in respect of
any Common Security, and no other payment on account of the redemption,
liquidation or other acquisition of Common Securities, shall be made unless
payment in full in cash of all accumulated and unpaid Distributions (including
any Additional Interest) on all Outstanding Preferred Securities for all
Distribution periods terminating on or prior thereto, or in the case of payment
of the Redemption Price the full amount of such Redemption Price on all
Outstanding Preferred Securities then called for redemption, or in the case of
payment of the Liquidation Distribution the full amount of such Liquidation
Distribution on all Outstanding Preferred Securities, shall have been made or
provided for, and all funds immediately available to the Property Trustee shall
first be applied to the payment in full in cash of all Distributions (including
any Additional Interest) on, or the Redemption Price of, the Preferred
Securities then due and payable.

 

(b) In
the case of the occurrence of any Event of Default, the Holders of the Common
Securities shall have no right to act with respect to any such Event of Default
under this Declaration until the effect of all such Events of Default with
respect to the Preferred Securities have been cured, waived or otherwise
eliminated. Until all such Events of Default under this Declaration with
respect to the Preferred Securities have been so cured, waived or otherwise
eliminated, the Property Trustee shall act solely on behalf of the Holders of
the Preferred Securities and not on behalf of the Holders of the Common
Securities, and only the Holders of the Preferred Securities will have the
right to direct the Property Trustee to act on their behalf.

 

14

 

Section 4.4
Payment Procedures. Payments of Distributions (including any Additional
Interest) in respect of the Preferred Securities shall be made by check mailed
to the address of the Person entitled thereto as such address shall appear on
the Securities Register. Payments in respect of the Common Securities shall be
made in such manner as shall be mutually agreed between the Property Trustee
and the Holders of the Common Securities.

 

Section 4.5
Tax Returns and Reports. The Administrators shall prepare (or cause to
be prepared), at the Sponsor’s expense, and file all United States Federal,
state and local tax and information returns and reports required to be filed by
or in respect of the Trust. In this regard, the Administrators shall (a) prepare
and file (or cause to be prepared and filed) all Internal Revenue Service forms
required to be filed in respect of the Trust in each taxable year of the Trust,
and (b) prepare and furnish (or cause to be prepared and furnished) to
each Holder all Internal Revenue Service forms required to be provided by the
Trust to such Holder. The Administrators shall provide the Sponsor with a copy
of all such returns and reports promptly after such filing or furnishing. The Administrators
shall comply with United States Federal withholding and backup withholding tax
laws and information reporting requirements with respect to any payments to
Holders under the Trust Securities.

 

Section 4.6
Payment of Taxes, Duties, Etc. of the Trust. Upon receipt under the
Debentures of Additional Amounts and receipt of written direction of the
Administrators, the Property Trustee shall promptly pay, solely out of moneys
on deposit pursuant to this Declaration, any taxes, duties or governmental
charges of whatsoever nature (other than withholding taxes) imposed on the
Trust by the United States or any other taxing authority, which were included
in such Additional Amounts.

 

Section 4.7
Payments under Indenture or Pursuant to Direct Actions. Any amount
payable hereunder to any Holder of Preferred Securities (or any Owner with
respect thereto) shall be reduced by the amount of any corresponding payment
such Holder (or Owner) has directly received pursuant to Section 5.8 of
the Indenture or Section 5.13 of this Declaration.

 

ARTICLE V

TRUST SECURITIES CERTIFICATES

 

Section 5.1
Initial Ownership. Upon
the formation of the Trust and the contribution by the Sponsor pursuant to Section 2.3
and until the issuance of the Trust Securities, and at any time during which no
Trust Securities are outstanding, the Sponsor shall be the sole beneficial
owner of the Trust.

 

Section 5.2
The Trust Securities Certificates.

 

(a) The
Preferred Securities Certificates shall be issued in minimum denominations of
$1,000.00 Liquidation Amount and integral multiples of $1,000.00 in excess
thereof, and the Common Securities Certificates shall be issued in
denominations of $1,000.00 Liquidation Amount and integral multiples thereof.
The Trust Securities Certificates shall be executed on behalf of the Trust by
manual or facsimile signature of at least one Administrator. Trust Securities
Certificates bearing the signatures of individuals who were, at the time when
such signatures shall have been affixed, authorized to sign on behalf of the
Trust, shall be validly issued and entitled to the benefits of this
Declaration, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the delivery of such Trust Securities
Certificates or did not hold such offices at the date of delivery of such Trust
Securities Certificates. A transferee of a Trust Securities Certificate shall
become a Holder, and shall be entitled to the rights and subject to the
obligations of a Holder hereunder, upon due registration of such Trust
Securities Certificate in such transferee’s name pursuant to Section 5.5.

 

(b) Upon
their original issuance, Preferred Securities Certificates shall be issued in
fully registered certificated form in the form of the Definitive Preferred Securities
Certificate, in the name of the Purchasers.

 

(c) A
single Common Securities Certificate representing the Common Securities shall
be issued to the Sponsor in the form of a definitive Common Securities
Certificate.

 

15

 

Section 5.3
Execution, Delivery and Authentication of Trust Securities Certificates.
At the Closing Date, the Administrators shall cause Trust Securities
Certificates, in the aggregate Liquidation Amounts as provided in Sections 2.4
and 2.5 with respect to Preferred Securities and Common Securities,
respectively, to be executed on behalf of the Trust or upon the written order
of the Sponsor, executed by one authorized officer thereof, and shall cause the
executed Preferred Securities Certificates to be delivered to the Property
Trustee and upon the Property Trustee’s receipt thereof and of a written order
of the Sponsor, the Property Trustee shall authenticate such Preferred
Securities Certificates, in each case without further corporate action by the
Sponsor.

 

Each
Preferred Securities Certificate shall be dated the date of its authentication.

 

No
Preferred Securities Certificate shall be entitled to any benefit under this
Declaration or be valid or obligatory for any purpose, unless there appears on
such Preferred Securities Certificate a certificate of authentication
substantially in the form provided for in the form attached as Exhibit B
executed by the Property Trustee by the manual signature of one of its
authorized officers, and such signature upon any Preferred Securities
Certificate shall be conclusive evidence, and the only evidence, that such
Preferred Securities Certificate has been duly authenticated and delivered
hereunder.

 

Upon
issuance of the Trust Securities as provided in this Declaration, the Trust
Securities so issued shall be deemed to be validly issued, fully paid and
nonassessable, and each Holder thereof shall be entitled to the benefits
provided by this Declaration.

 

Section 5.4
[Intentionally omitted]

 

Section 5.5
Registration of Transfer and Exchange of Preferred Securities Certificates.

 

The
Property Trustee shall keep or cause to be kept, at the office or agency
maintained pursuant to Section 5.9, a register or registers for the
purpose of registering Trust Securities Certificates and transfers and
exchanges of Trust Securities evidenced thereby (the “Securities Register”) in
which the registrar and transfer agent with respect to the Trust Securities
(the “Securities Registrar”), subject to such reasonable regulations as it may
prescribe, shall provide for the registration of Preferred Securities
Certificates and Common Securities Certificates (subject to Section 5.11
in the case of the Common Securities Certificates) and registration of
transfers and exchanges of Preferred Securities evidenced thereby as herein
provided. The Property Trustee shall at all times also be the Securities
Registrar.

 

Upon
surrender for registration of transfer of any Preferred Securities Certificate
at the office or agency maintained pursuant to Section 5.9, the
Administrators or any one of them shall execute and deliver to the Property
Trustee, and upon receipt thereof the Property Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Preferred Securities Certificates in authorized denominations of a like
aggregate Liquidation Amount dated the date of execution by the Property
Trustee.

 

The
Securities Registrar shall not be required, (i) to issue, register the
transfer of or exchange any Preferred Security during a period beginning at the
opening of business 15 days before the day of selection for redemption of such
Preferred Securities pursuant to Article IV and ending at the close of
business on the day of mailing of the notice of redemption, or (ii) to
register the transfer of or exchange any Preferred Security so selected for
redemption in whole or in part, except, in the case of any such Preferred
Security to be redeemed in part, any portion thereof not to be redeemed.

 

Every
Preferred Securities Certificate presented or surrendered for registration of
transfer or exchange of the Preferred Securities evidenced thereby shall be
accompanied by a written instrument of transfer in form satisfactory to an
Administrator and the Securities Registrar duly executed by the Holder or its
attorney duly authorized in writing. Each Preferred Securities Certificate
surrendered for registration of transfer or exchange of the Preferred
Securities evidenced thereby shall be cancelled and subsequently disposed of by
the Property Trustee in accordance with its customary practice.

 

16

 

No
service charge shall be made for any registration of transfer or exchange of
Preferred Securities Certificates, but the Securities Registrar may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Preferred Securities
Certificates.

 

Section 5.6
Mutilated, Destroyed, Lost or Stolen Trust Securities Certificates. If (a) any
mutilated Trust Securities Certificate shall be surrendered to the Securities
Registrar, or if the Securities Registrar shall receive evidence to its
satisfaction of the destruction, loss or theft of any Trust Securities
Certificate, and (b) there shall be delivered to the Securities Registrar
and the Administrators such security or indemnity as may be required by them to
save each of them harmless, then in the absence of notice that such Trust
Securities Certificate shall have been acquired by a protected purchaser, the
Administrators, or any one of them, on behalf of the Trust shall execute and
make available for delivery, and with respect to Preferred Securities, the
Property Trustee shall authenticate, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Trust Securities Certificate, a new Trust
Securities Certificate of like class, tenor and denomination. In connection
with the issuance of any new Trust Securities Certificate under this Section 5.6,
the Administrators or the Securities Registrar may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith. Any duplicate Trust Securities Certificate issued
pursuant to this Section shall constitute conclusive evidence of an
undivided beneficial interest in the assets of the Trust corresponding to that
evidenced by the lost, stolen or destroyed Trust Securities Certificate, as if
originally issued, whether or not the lost, stolen or destroyed Trust
Securities Certificate shall be found at any time.

 

The
provisions of this Section 5.6 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement of
mutilated, destroyed, lost or stolen Trust Securities Certificates.

 

Section 5.7
Persons Deemed Holders. The Trustees and the Securities Registrar shall
each treat the Person in whose name any Trust Securities Certificate shall be
registered in the Securities Register as the owner of the Trust Securities
evidenced thereby for the purpose of receiving Distributions and for all other
purposes whatsoever, and none of the Trustees and the Securities Registrar
shall be bound by any notice to the contrary.

 

Section 5.8
Access to List of Holders’ Names and Addresses. Each Holder and each
Owner shall be deemed to have agreed not to hold the Sponsor or the Trustees
accountable by reason of the disclosure of its name and address in accordance
with the provisions hereof, regardless of the source from which such
information was derived.

 

Section 5.9
Maintenance of Office or Agency. The Property Trustee shall designate,
with the consent of the Administrators, which consent shall not be unreasonably
withheld, an office or offices or agency or agencies where Preferred Securities
Certificates may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Trustees in respect of the Trust
Securities Certificates may be served. The Administrators initially designate
the Property Trustee’s Corporate Trust Office, as its office and agency for
such purposes. The Property Trustee shall give prompt written notice to the
Sponsor, the Administrators and to the Holders of any change in the location of
the Securities Register or any such office or agency.

 

Section 5.10
Appointment of Paying Agent. The Paying Agent shall make Distributions
to Holders from the Payment Account and shall report the amounts of such
Distributions to the Property Trustee and the Administrators. Any Paying Agent
shall have the revocable power to withdraw funds from the Payment Account
solely for the purpose of making the Distributions referred to above. The
Administrators may revoke such power and remove the Paying Agent in their sole
discretion. The Paying Agent shall initially be the Property Trustee. Any
Person acting as Paying Agent shall be permitted to resign as Paying Agent upon
30 days’ written notice to the Administrators and the Property Trustee. If
the Property Trustee shall no longer be the Paying Agent or a successor Paying
Agent shall resign or its authority to act be revoked, the Administrators shall
appoint a successor (which shall be a bank or trust company) to act as Paying
Agent. Such successor Paying Agent or any additional Paying Agent appointed by
the Administrators shall execute and deliver to the Trustees an instrument in
which such successor Paying Agent or additional Paying Agent shall agree with
the Trustees that as Paying Agent, such successor Paying Agent or additional Paying
Agent will hold all sums, if any, held by it for payment to the Holders 

 

17

 

in
trust for the benefit of the Holders entitled thereto until such sums shall be
paid to such Holders. The Paying Agent shall return all unclaimed funds to the
Property Trustee and upon removal of a Paying Agent such Paying Agent shall
also return all funds in its possession to the Property Trustee. The provisions
of Sections 8.1, 8.3 and 8.6 herein shall apply to the Property Trustee in
its role as Paying Agent, for so long the Property Trustee shall act as Paying
Agent and, to the extent applicable, to any other paying agent appointed
hereunder. Any reference in this Declaration to the Paying Agent shall include
any co-paying agent unless the context requires otherwise.

 

Section 5.11
Ownership of Common Securities by Sponsor. (a) At the Closing Date,
the Sponsor shall acquire, and thereafter shall retain, beneficial and record
ownership of the Common Securities. The Sponsor may not transfer the Common
Securities except (i) in connection with a consolidation or merger of the
Sponsor into another corporation, or any conveyance, transfer or lease by the
Sponsor of its properties and assets substantially as an entirety to any
Person, pursuant to Article VIII of the Indenture, or (ii) to an
Affiliate of the Sponsor in compliance with applicable law (including the
Securities Act and applicable state securities and blue sky laws). To the
fullest extent permitted by law, any attempted transfer of the Common
Securities other than as set forth in the next proceeding sentence shall be
void. The Administrators shall cause each Common Securities Certificate issued
to the Sponsor to contain a legend stating substantially “THIS CERTIFICATE IS
NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11
OF THE DECLARATION.”

 

(b) Any
Holder of the Common Securities shall be liable for the debts and obligations
of the Trust in the manner and to the extent set forth herein with respect to
the Sponsor and agrees that it shall be subject to all liabilities to which the
Sponsor may be subject and, prior to becoming such a Holder, shall deliver to
the Administrative Trustees an instrument of assumption satisfactory to such
Trustees.

 

Section 5.12.
[Intentionally Omitted.]

 

Section 5.13
Rights of Holders; Waivers of Past Defaults.

 

(a) The
legal title to the Trust Property is vested exclusively in the Property Trustee
(in its capacity as such) in accordance with Section 2.9, and the Holders
shall not have any right or title therein other than the undivided beneficial
interest in the assets of the Trust conferred by their Trust Securities and
they shall have no right to call for any partition or division of property,
profits or rights of the Trust except as described below. The Trust Securities
shall be personal property giving only the rights specifically set forth
therein, in this Declaration and in the Delaware Statutory Trust Act. The Trust
Securities shall have no preemptive or similar rights to subscribe for
additional Trust Securities and when issued and delivered to Holders against
payment of the purchase price therefor will be fully paid and nonassessable by
the Trust. Subject to the provisions of Section 2.10, the Holders of the
Trust Securities, in their capacities as such, shall be entitled to the same
limitation of personal liability extended to stockholders of private
corporations for profit organized under the General Corporation Law of the
State of Delaware.

 

(b) For
so long as any Preferred Securities remain Outstanding, if, upon a Debenture
Event of Default, the Debenture Trustee fails or the holders of not less than
25% in principal amount of the outstanding Debentures fail to declare the
principal of all of the Debentures to be immediately due and payable, then to
the fullest extent permitted by law, and subject to the terms of the Indenture
and this Declaration, the Holders of at least 25% in Liquidation Amount of the
Preferred Securities then Outstanding shall have the right to make such
declaration by a notice in writing to the Sponsor and the Debenture Trustee.

 

At
any time after a declaration of acceleration with respect to the Debentures has
been made and before a judgment or decree for payment of the money due has been
obtained by the Debenture Trustee as in the Indenture provided, if the Property
Trustee fails to annul any such declaration and waive such default, the Holders
of at least a Majority in Liquidation Amount of the Preferred Securities, by
written notice to the Property Trustee, the Sponsor and the Debenture Trustee,
may rescind and annul such declaration and its consequences if:

 

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

 

18

 

(A) all
overdue installments of interest (including any Additional Interest) on all of
the Debentures,

 

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

 

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

 

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

 

To
the fullest extent permitted by law and subject to the terms of this
Declaration and the Indenture, the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities may, on behalf of the Holders of
all the Preferred Securities, waive any past default under the Indenture,
except a default in the payment of principal or interest (unless such default
has been cured and a sum sufficient to pay all matured installments of interest
and principal due otherwise than by acceleration has been deposited with the
Debenture Trustee) or a default in respect of a covenant or provision that
under the Indenture cannot be modified or amended without the consent of the
holder of each outstanding Debenture. No such rescission shall affect any
subsequent default or impair any right consequent thereon.

 

Upon
receipt by the Property Trustee of written notice declaring such an
acceleration, or rescission and annulment thereof, by Holders of any part of
the Preferred Securities a record date shall be established for determining
Holders of Outstanding Preferred Securities entitled to join in such notice,
which record date shall be at the close of business on the day the Property
Trustee receives such notice. The Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to join in such
notice, whether or not such Holders remain Holders after such record date;
provided that, unless such declaration of acceleration, or rescission and
annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day that is 90
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice that has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 5.13(b).

 

(c) For
so long as any Preferred Securities remain Outstanding, to the fullest extent
permitted by law and subject to the terms of this Declaration and the
Indenture, upon a Debenture Event of Default specified in Section 5.01(a) or
(b)  of the Indenture, any Holder of Preferred Securities shall have the
right to institute a proceeding directly against the Sponsor, pursuant to Section 5.08
of the Indenture, for enforcement of payment to such Holder of any amounts payable
in respect of Debentures having an aggregate principal amount equal to the
aggregate Liquidation Amount of the Preferred Securities of such Holder (a “Direct
Action”). Except as set forth in Section 5.13(b) and this Section 5.13(c),
the Holders of Preferred Securities shall have no right to exercise directly
any right or remedy available to the holders of, or in respect of, the
Debentures.

 

(d) Except
as otherwise provided in clauses (a), (b) and (c) of this Section 5.13,
to the fullest extent permitted by law and subject to the terms of this
Declaration and the Indenture, the Holders of at least a Majority in
Liquidation Amount of the Preferred Securities may, on behalf of the Holders of
all the Preferred Securities, waive any past default or Event of Default and
its consequences. Upon such waiver, any such default or Event of Default shall
cease to exist, and any default or Event of Default arising therefrom shall be
deemed to have been cured, for every purpose of this Declaration, but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

 

19

 

ARTICLE VI

ACTS OF HOLDERS; MEETINGS; VOTING

 

Section 6.1
Limitations on Voting Rights.

 

(a) Except
as expressly provided in this Declaration and in the Indenture and as otherwise
required by law, no Holder of Preferred Securities shall have any right to vote
or in any manner otherwise control the administration, operation and management
of the Trust or the obligations of the parties hereto, nor shall anything
herein set forth, or contained in the terms of the Trust Securities
Certificates, be construed so as to constitute the Holders from time to time as
partners or members of an association.

 

(b) So
long as any Debentures are held by the Property Trustee on behalf of the Trust,
the other Trustees shall not (i) direct the time, method and place of
conducting any proceeding for any remedy available to the Debenture Trustee, or
execute any trust or power conferred on the Property Trustee with respect to
the Debentures, (ii) waive any past default that may be waived under Section 5.07
of the Indenture, (iii) exercise any right to rescind or annul a
declaration that the principal of all the Debentures shall be due and payable,
or (iv) consent to any amendment, modification or termination of the
Indenture or the Debentures, where such consent shall be required, without, in
each case, obtaining the prior approval of the Holders of at least a Majority
in Liquidation Amount of the Preferred Securities, provided, however, that
where a consent under the Indenture would require the consent of each Holder of
Debentures affected thereby, no such consent shall be given by the Property
Trustee without the prior written consent of each Holder of Preferred
Securities. The Trustees shall not revoke any action previously authorized or
approved by a vote of the Holders of the Preferred Securities, except by a
subsequent vote of the Holders of the Preferred Securities. The Property
Trustee shall notify all Holders of the Preferred Securities of any notice of
default received by the Property Trustee with respect to the Debentures. In
addition to obtaining the foregoing approvals of the Holders of the Preferred
Securities, prior to taking any of the foregoing actions, the Trustees shall,
at the expense of the Sponsor, obtain an Opinion of Counsel experienced in such
matters to the effect that such action shall not cause the Trust to be taxable
as a corporation or classified as other than a grantor trust for United States
Federal income tax purposes.

 

(c) If
any proposed amendment to the Declaration provides for, or the Trustees otherwise
propose to effect, (i) any action that would adversely affect in any
material respect the powers, preferences or special rights of the Preferred
Securities, whether by way of amendment to this Declaration or otherwise, or (ii) the
dissolution of the Trust, other than pursuant to the terms of this Declaration,
then the Holders of Outstanding Preferred Securities as a class will be
entitled to vote on such amendment or proposal and such amendment or proposal
shall not be effective except with the approval of the Holders of at least a
Majority in Liquidation Amount of the Preferred Securities. Notwithstanding any
other provision of this Declaration, no amendment to this Declaration may be
made if, as a result of such amendment, it would cause the Trust to be taxable
as a corporation or classified as other than a grantor trust for United States
Federal income tax purposes.

 

Section 6.2
Notice of Meetings. Notice of all meetings of the Holders of the
Preferred Securities, stating the time, place and purpose of the meeting, shall
be given by the Administrators or, at the written request of the
Administrators, by the Property Trustee pursuant to Section 10.8 to each
Holder of Preferred Securities, at such Holder’s registered address, at least
20 days and not more than 90 days before the meeting. At any such meeting, any
business properly before the meeting may be so considered whether or not stated
in the notice of the meeting. Any adjourned meeting may be held as adjourned
without further notice.

 

Section 6.3
Meetings of Holders of the Preferred Securities. No annual meeting of
Holders is required to be held. The Administrators, however, shall call a
meeting of the Holders of the Preferred Securities to vote on any matter upon
the written request of the Holders of at least 25% in aggregate Liquidation
Amount of the Outstanding Preferred Securities and the Administrators or the
Property Trustee may, at any time in their or its discretion, call a meeting of
the Holders of the Preferred Securities to vote on any matters as to which such
Holders are entitled to vote.

 

20

 

The
Holders of at least a Majority in Liquidation Amount of the Preferred
Securities, present in person or by proxy, shall constitute a quorum at any meeting
of the Holders of the Preferred Securities.

 

If
a quorum is present at a meeting, an affirmative vote by the Holders present,
in person or by proxy, holding Preferred Securities representing at least a
Majority in aggregate Liquidation Amount of the Preferred Securities held by
the Holders present, either in person or by proxy, at such meeting shall
constitute the action of the Holders of the Preferred Securities, unless this
Declaration requires a greater or lesser number of affirmative votes.

 

Section 6.4
Voting Rights. Holders shall be entitled to one vote for each $1,000 of
Liquidation Amount represented by their Outstanding Trust Securities in respect
of any matter as to which such Holders are entitled to vote.

 

Section 6.5
Proxies, etc. At any meeting of Holders, any Holder entitled to vote
thereat may vote by proxy, provided that no proxy shall be voted at any meeting
unless it shall have been placed on file with the Administrators, or with such
other officer or agent of the Trust as the Administrators may direct, for
verification prior to the time at which such vote shall be taken. Pursuant to a
resolution of the Property Trustee, proxies may be solicited in the name of the
Property Trustee or one or more officers of the Property Trustee. Only Holders
of record shall be entitled to vote. When Trust Securities are held jointly by
several Persons, any one of them may vote at any meeting in person or by proxy
in respect of such Trust Securities, but if more than one of them shall be
present at such meeting in person or by proxy, and such joint owners or their
proxies so present disagree as to any vote to be cast, such vote shall not be
received in respect of such Trust Securities. A proxy purporting to be executed
by or on behalf of a Holder shall be deemed valid unless challenged at or prior
to its exercise, and the burden of proving invalidity shall rest on the
challenger. No proxy shall be valid more than three years after its date of
execution.

 

Section 6.6
Holder Action by Written Consent. Any action that may be taken by
Holders at a meeting may be taken without a meeting and without prior notice if
Holders holding at least a Majority in Liquidation Amount of all Preferred
Securities entitled to vote in respect of such action (or such lesser or greater
proportion thereof as shall be required by any other provision of this
Declaration) shall consent to the action in writing.

 

Section 6.7
Record Date for Voting and Other Purposes. For the purposes of
determining the Holders who are entitled to notice of and to vote at any
meeting or by written consent, or to participate in any distribution on the
Trust Securities in respect of which a record date is not otherwise provided
for in this Declaration, or for the purpose of any other action, the Administrators
may from time to time fix a date, not more than 90 days prior to the date
of any meeting of Holders or the payment of a distribution or other action, as
the case may be, as a record date for the determination of the identity of the
Holders of record for such purposes.

 

Section 6.8
Acts of Holders. Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Declaration to be
given, made 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; and, except as otherwise expressly
provided herein, such action shall become effective when such instrument or
instruments are delivered to an Administrator. Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Declaration and (subject to Section 8.1)
conclusive in favor of the Trustees, 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 by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is
by a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner that any Trustee receiving the same deems sufficient.

 

21

 

The
ownership of Trust Securities shall be proved by the Securities Register.

 

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

 

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

 

If
any dispute shall arise among the Holders or the Trustees with respect to the
authenticity, validity or binding nature of any request, demand, authorization,
direction, notice, consent, waiver or other Act of such Holder or Trustee under
this Article VI, then the determination of such matter by the Property
Trustee shall be conclusive with respect to such matter.

 

Section 6.9
Inspection of Records. Upon reasonable written notice to the
Administrators and the Property Trustee, the records of the Trust shall be open
to inspection by Holders during normal business hours for any purpose
reasonably related to such Holder’s interest as a Holder.

 

ARTICLE VII

REPRESENTATIONS AND WARRANTIES

 

Section 7.1
Representations and Warranties of the Property Trustee and the Delaware
Trustee. The Property Trustee and the Delaware Trustee, each severally on
behalf of and as to itself, hereby represents and warrants for the benefit of
the Sponsor and the Holders that:

 

(a) the
Property Trustee is a Delaware banking corporation with trust powers, duly
organized and validly existing under the laws of the State of Delaware with
trust power and authority to execute and deliver, and to carry out and perform
its obligations under the terms of, this Declaration;

 

(b) the
Property Trustee has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Declaration and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Declaration;

 

(c) the
Delaware Trustee is a Delaware banking corporation with trust powers, duly
organized and validly existing under the laws of the State of Delaware with
trust power and authority to execute and deliver, and to carry out and perform
its obligations under the terms of, this Declaration;

 

(d) the
Delaware Trustee has full corporate power, authority and legal right to
execute, deliver and perform its obligations under this Declaration and has
taken all necessary action to authorize the execution, delivery and performance
by it of this Declaration;

 

(e) this
Declaration has been duly authorized, executed and delivered by the Property
Trustee and the Delaware Trustee and constitutes the legal, valid and binding
agreement of each of the Property Trustee and Delaware Trustee enforceable
against each of them in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
principles of equity and the discretion of the court;

 

(f) the
execution, delivery and performance of this Declaration have been duly
authorized by all necessary corporate or other action on the part of the
Property Trustee and Delaware Trustee and does not require any approval 

 

22

 

of
stockholders of the Property Trustee and Delaware Trustee and such execution,
delivery and performance will not (i) violate the Charter or By-laws of
the Property Trustee and Delaware Trustee, (ii) violate any provision of,
or constitute, with or without notice or lapse of time, a default under, or
result in the creation or imposition of, any Lien on any properties included in
the Trust Property pursuant to the provisions of, any indenture, mortgage,
credit agreement, license or other agreement or instrument to which the
Property Trustee or the Delaware Trustee, in its individual capacity, is a
party or by which it, in its individual capacity, is bound, or (iii) violate
any law, governmental rule or regulation of the United States of America
governing the banking and trust powers of the Property Trustee and Delaware
Trustee (as appropriate in context) or any order, judgment or decree applicable
to the Property Trustee and Delaware Trustee;

 

(g) neither
the authorization, execution or delivery by the Property Trustee and Delaware
Trustee of this Declaration nor the consummation of any of the transactions by
the Property Trustee or Delaware Trustee (as appropriate in context)
contemplated herein requires the consent or approval of, the giving of notice
to, the registration with or the taking of any other action with respect to any
governmental authority or agency under any existing Delaware or United States
federal law governing the banking and trust powers of the Property Trustee or
Delaware Trustee, as the case may be;

 

(h) there
are no proceedings pending or, to the best of each of the Property Trustee’s
and Delaware Trustee’s knowledge, threatened against or affecting the Property
Trustee and Delaware Trustee in any court or before any governmental authority,
agency or arbitration board or tribunal that, individually or in the aggregate,
would materially and adversely affect the Trust or would question the right,
power and authority of the Property Trustee and Delaware Trustee, as the case
may be, to enter into or perform its obligations as one of the Trustees under
this Declaration; and

 

(i) the
Property Trustee is a person eligible pursuant to the Trust Indenture Act to
act as such and has a combined capital and surplus of at least $50,000,000.00.

 

Section 7.2
Representations and Warranties of Sponsor. The Sponsor hereby represents
and warrants for the benefit of the Property Trustee, the Delaware Trustee and
the Holders that:

 

(a) the
Trust Securities Certificates issued on the Closing Date or on any Option Closing
Date, if applicable, on behalf of the Trust have been duly authorized and will
have been duly and validly executed, issued and delivered by the Trustees
pursuant to the terms and provisions of, and in accordance with the
requirements of, this Declaration and the Holders will be, as of each such
date, entitled to the benefits of this Declaration;

 

(b) there
are no taxes, fees or other governmental charges payable by the Trust (or the
Trustees on behalf of the Trust) under the laws of the State of Delaware or any
political subdivision thereof in connection with the execution, delivery and
performance by the Property Trustee and Delaware Trustee of this Declaration;

 

(c) the
Sponsor is a corporation duly organized, validly existing and in good standing
under the laws of its state of incorporation;

 

(d) the
Sponsor has full corporate power, authority and legal right to execute, deliver
and perform its obligations under this Declaration and has taken all necessary
action to authorize the execution, delivery and performance by it of this
Declaration;

 

(e) this
Declaration has been duly authorized, executed and delivered by the Sponsor and
constitutes the legal, valid and binding agreement of the Sponsor enforceable
against the Sponsor in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally
and to general principles of equity and the discretion of the court;

 

(f) the
execution, delivery and performance of this Declaration have been duly authorized
by all necessary corporate or other action on the part of the Sponsor and do
not require any approval of stockholders of the Sponsor 

 

23

 

and
such execution, delivery and performance will not (i) violate the articles
or certificate of incorporation or by laws (or other organizational documents)
of the Sponsor or (ii) violate any applicable law, governmental rule or
regulation governing the Sponsor or any material portion of its property or any
order, judgment or decree applicable to the Sponsor or any material portion of
its property;

 

(g) neither
the authorization, execution or delivery by the Sponsor of this Declaration nor
the consummation of any of the transactions by the Sponsor contemplated herein
requires the consent or approval of, the giving of notice to, the registration
with or the taking of any other action with respect to any governmental
authority or agency under any existing law governing the Sponsor or any
material portion of its property; and

 

(h) there
are no proceedings pending or, to the best of the Sponsor’s knowledge,
threatened against or affecting the Sponsor or any material portion of its
property in any court or before any governmental authority, agency or
arbitration board or tribunal that, individually or in the aggregate, would
materially and adversely affect the Trust or would question the right, power
and authority of the Sponsor, as the case may be, to enter into or perform its
obligations under this Declaration.

 

ARTICLE VIII

THE TRUSTEES

 

Section 8.1
Certain Duties and Responsibilities.

 

(a) The
rights, immunities, duties and responsibilities of the Trustees shall be as
provided by this Declaration (and there shall be no other duties (including
fiduciary duties) or obligations, express or implied, at law or in equity, of
the Trustees). Notwithstanding the foregoing, no provision of this Declaration
shall require any of the Trustees to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it or they
shall have reasonable grounds for believing that the repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to it.
Whether or not herein expressly so provided, every provision of this
Declaration relating to the conduct or affecting the liability of or affording
protection to the Trustees shall be subject to the provisions of this Section 8.1.
Nothing in this Declaration shall be construed to release an Administrator from
liability for his or her own negligent action, his or her own negligent failure
to act, or his or her own willful misconduct with respect to acts or omissions.
To the extent that, at law or in equity, an Trustee has duties and liabilities
relating to the Trust or to the Holders, such Trustee shall not be liable to
the Trust or to any Holder for such Trustee’s good faith reliance on the
provisions of this Declaration. The provisions of this Declaration, to the
extent that they restrict or eliminate the duties and liabilities of the
Trustees otherwise existing at law or in equity, are agreed by the Sponsor and
the Holders to replace such other duties and liabilities of the Trustees.  Notwithstanding any provision in this
Declaration to the contrary, no provision of this Declaration is intended to or
shall eliminate the implied contractual covenant of good faith and fair dealing
and no provision of this Declaration is intended to or shall limit or eliminate
liability for any act or omission that constitutes a bad faith violation of the
implied contractual covenant of good faith and fair dealing.

 

(b) All
payments made by the Property Trustee or a Paying Agent in respect of the Trust
Securities shall be made only from the revenue and proceeds from the Trust
Property and only to the extent that there shall be sufficient revenue or
proceeds from the Trust Property to enable the Property Trustee or a Paying
Agent to make payments in accordance with the terms hereof. Each Holder, by its
acceptance of a Trust Security, agrees that it will look solely to the revenue
and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Trustees are not personally
liable to it for any amount distributable in respect of any Trust Security or
for any other liability in respect of any Trust Security. This Section 8.1(b) does
not limit the liability of the Trustees expressly set forth elsewhere in this
Declaration.

 

(c) No
provision of this Declaration shall be construed to relieve the Property
Trustee (or any separate Delaware Trustee) with respect to matters that are
within the authority of such Trustee under this Declaration from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

24

 

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

 

(ii) the
Property Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of at least a Majority in Liquidation Amount of the Preferred
Securities relating to the time, method and place of conducting any proceeding
for any remedy available to the Property Trustee, or exercising any trust or power
conferred upon the Property Trustee under this Declaration;

 

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

 

(iv) the
Property Trustee shall not be liable for any interest on any money received by
it; and money held by the Property Trustee need not be segregated from other
funds held by it except in relation to the Payment Account maintained by the
Property Trustee pursuant to Section 3.1 and except to the extent otherwise
required by law;

 

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

 

(vi) No
provision of this Declaration shall require the Property Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or
powers.

 

(d) The
Administrators shall not be responsible for monitoring the compliance by the
other Trustees or the Sponsor with their respective duties under this
Declaration, nor shall any Administrator be liable for the default or
misconduct of any other Administrator, the other Trustees or the Sponsor.

 

Section 8.2
Certain Notices. Within
fifteen Business Days after the occurrence of any Event of Default actually
known to a Responsible Officer of the Property Trustee, the Property Trustee
shall transmit, in the manner and to the extent provided in Section 10.8,
notice of such Event of Default to the Holders, the Administrators and the
Sponsor, unless such Event of Default shall have been cured or waived.

 

Within
five Business Days after the receipt of notice of the Sponsor’s exercise of its
right to defer the payment of interest on the Debentures pursuant to the
Indenture, the Property Trustee shall transmit, in the manner and to the extent
provided in Section 10.8, notice of such exercise to the Holders, unless
such exercise shall have been revoked.

 

Section 8.3
Certain Rights of Property Trustee.
Subject to the provisions of Section 8.1:

 

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

 

(b) if
(i) in performing its duties under this Declaration the Property Trustee
is required to decide between alternative courses of action, (ii) in
construing any of the provisions of this Declaration the Property Trustee finds
the same ambiguous or inconsistent with any other provisions contained herein,
or (iii) the Property Trustee is unsure of the application of any
provision of this Declaration, then, except as to any matter as to which the
Holders 

 

25

 

of
the Preferred Securities are entitled to vote under the terms of this
Declaration, the Property Trustee shall deliver a notice to the Sponsor
requesting the Sponsor’s written instruction as to the course of action to be
taken, and the Property Trustee shall take such action, or refrain from taking
such action, as the Property Trustee shall be instructed in writing to take, or
to refrain from taking, by the Sponsor; provided,
however, that if the Property Trustee does not receive such instructions
of the Sponsor within ten Business Days after it has delivered such notice, or
such reasonably shorter period of time set forth in such notice (which to the
extent practicable shall not be less than two Business Days), it may, but shall
be under no duty to, take or refrain from taking such action as it shall deem
advisable and in the best interests of the Holders, in which event the Property
Trustee shall have no liability except for its own negligence or willful
misconduct;

 

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

 

(d) any
direction or act of an Administrator contemplated by this Declaration shall be
sufficiently evidenced by a certificate executed by such Administrator and
setting forth such direction or act;

 

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

 

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

 

(g) the
Property Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Declaration at the request or direction of any of
the Holders or the Sponsor pursuant to this Declaration, unless such Holders or
Sponsor shall have offered to the Property Trustee reasonable security or
indemnity against the costs, expenses (including reasonable attorneys’ fees and
expenses) and liabilities that might be incurred by it in compliance with such
request or direction, including reasonable advances as may be requested by the
Property Trustee; provided that
nothing contained in this Section 8.3(g) shall be taken to relieve
the Property Trustee, upon the occurrence of an Event of Default actually known
to a Responsible Officer of the Property Trustee, of its obligation to exercise
the rights and powers vested in it by this Declaration;

 

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

 

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

 

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

 

26

 

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

 

(l) without
prejudice to any other rights available to the Property Trustee under
applicable law, when the Property Trustee incurs expenses or renders services
in connection with a Bankruptcy Event, such expenses (including legal fees and
expenses of its agents and counsel) and the compensation for such services are
intended to constitute expenses of administration under any Bankruptcy Law or
law relating to creditors rights generally; and

 

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

 

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

 

Whether
or not therein expressly so provided, every provision of this Declaration
relating to the conduct or affecting the liability of or affording protection
to the Property Trustee shall extend to each of the Security Registrar, the
Paying Agent and the Delaware Trustee and shall be subject to the provisions of
this Article VIII.

 

Section 8.4
Not Responsible for Recitals or
Issuance of Securities. The recitals contained herein and in the
Trust Securities Certificates shall be taken as the statements of the Trust and
the Sponsor, and the Trustees do not assume any responsibility for their
correctness. The Trustees shall not be accountable for the use or application
by the Sponsor of the proceeds of the Debentures.

 

The
Property Trustee may conclusively assume that any funds held by it hereunder
are legally available unless a Responsible Officer of the Property Trustee
shall have received written notice from the Sponsor, any Holder or any other
Trustee that such funds are not legally available.

 

Section 8.5
May Hold Securities.
Any Trustee or any other agent of any Trustee or the Trust, in its individual
or any other capacity, may become the owner or pledgee of Trust Securities and,
subject to Sections 8.8 and 8.13, and except as provided in the definition of
the term “Outstanding” in Article I, may otherwise deal with the Trust
with the same rights it would have if it were not an Trustee or such other
agent.

 

Section 8.6
Compensation; Indemnity; Fees.
The Sponsor agrees:

 

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

 

(b) except
as otherwise expressly provided herein, to reimburse the Trustees upon request
for all reasonable expenses, disbursements and advances incurred or made by the
Trustees in accordance with any provision of this Declaration (including the
reasonable compensation and the expenses and disbursements of their agents and
counsel), except any such expense, disbursement or advance as may be
attributable to their negligence or willful misconduct; and

 

(c) to
the fullest extent permitted by applicable law, to indemnify and hold harmless (i) each
Trustee (including the Property Trustee and the Delaware Trustee in their
respective individual capacities), (ii) any Affiliate of any Trustee, (iii) any
officer, director, shareholder, employee, representative or agent of any
Trustee, and (iv) any employee or agent of the Trust (referred to herein
as an “Indemnified Person”)
from and against any loss, damage, 

 

27

 

liability,
action, suit, tax, penalty, expense or claim of any kind or nature whatsoever
incurred by such Indemnified Person by reason of the creation, operation or
termination of the Trust or any act or omission performed or omitted by such
Indemnified Person on behalf of the Trust, except that no Indemnified Person
shall be entitled to be indemnified in respect of any loss, damage, action,
suit or claim incurred by such Indemnified Person by reason of its own negligence
or willful misconduct with respect to such acts or omissions.

 

The
provisions of this Section 8.6 shall survive the termination of this
Declaration and the removal or resignation of any Trustee.

 

No
Trustee may claim any Lien on any Trust Property as a result of any amount due
pursuant to this Section 8.6.

 

To
the fullest extent permitted by law, in no event shall the Property Trustee and
the Delaware Trustee be liable for any indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including, but not limited
to, lost profits, even if the Trustee has been advised of the likelihood of
such loss or damage and regardless of the form of action.

 

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

 

Section 8.7
Corporate Trustee Required;
Eligibility of Trustees.

 

(a) There
shall at all times be a trustee hereunder with respect to the Trust Securities
who shall serve the function of Property Trustee. The Property Trustee shall be
a Person that is a national or state chartered bank and eligible pursuant to
the Trust Indenture Act to act as such and that has a combined capital and
surplus of at least $50,000,000. If any such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Property Trustee with respect to the Trust
Securities shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

 

(b) There
shall at all times be one or more Administrators hereunder with respect to the
Trust Securities. Each Administrator shall be either a natural person who is at
least 21 years of age or a legal entity that shall act through one or more
persons authorized to bind that entity.

 

(c) There
shall at all times be a Delaware Trustee with respect to the Trust Securities.
Such trustee shall either be (i) a natural person who is at least 21 years
of age and a resident of the State of Delaware, or (ii) a legal entity
with its principal place of business in the State of Delaware and that otherwise
meets the requirements of applicable Delaware law and that shall act through
one or more persons authorized to bind such entity.

 

Section 8.8[Intentionally Omitted].

 

Section 8.9
Co-Trustees and Separate Trustee.
Unless an Event of Default shall have occurred and be continuing, at any time
or times, for the purpose of meeting the legal requirements of any jurisdiction
in which any part of the Trust Property may at the time be located, the Sponsor
and the Administrators, by agreed action of the majority of such Trustees,
shall have power to appoint, and upon the written request of the
Administrators, the Sponsor shall for such purpose join with the Administrators
in the execution, delivery, and performance of all instruments and agreements
necessary or proper to appoint, one or more Persons approved by the Property
Trustee either to act as co-trustee, jointly with the Property Trustee, of all
or any part of such Trust Property, or to the extent 

 

28

 

required
by law to act as separate trustee of any such property, in either case with
such powers as may be provided in the instrument of appointment, and to vest in
such Person or Persons in the capacity aforesaid, any property, title, right or
power deemed necessary or desirable, subject to the other provisions of this
Section. Any co-trustee or separate trustee appointed pursuant to this Section shall
either be (i) a natural person who is at least 21 years of age and a
resident of the United States, or (ii) a legal entity with its principal
place of business in the United States that shall act through one or more
persons authorized to bind such entity. In case an Event of Default under the
Indenture shall have occurred and be continuing, the Property Trustee alone
shall have the power to make such appointment.

 

Unless
an Event of Default shall have occurred and be continuing, at any time or
times, for the purpose of meeting the legal requirements of the Delaware
Statutory Trust Act, the Sponsor and the Administrators, by agreed action of
the majority of such Trustees, shall have power to appoint, and upon the
written request of the Administrators, the Sponsor shall for such purpose join
with the Administrators in the execution, delivery, and performance of all instruments
and agreements necessary or proper to appoint a separate Delaware Trustee.

 

Should
any written instrument from the Sponsor be required by any co-trustee or
separate trustee so appointed for more fully confirming to such co-trustee or
separate trustee such property, title, right, or power, any and all such
instruments shall, on request, be executed, acknowledged and delivered by the
Sponsor.

 

Every
co-trustee or separate trustee shall, to the extent permitted by law, but to
such extent only, be appointed subject to the following terms, namely:

 

(a) The
Trust Securities Certificates shall be executed by one or more Administrators,
and the Trust Securities Certificates shall be made available for delivery by
the Property Trustee, and all rights, powers, duties, and obligations hereunder
in respect of the custody of securities, cash and other personal property held
by, or required to be deposited or pledged with, the Property Trustee specified
hereunder shall be exercised solely by the Property Trustee and not by such
co-trustee or separate trustee.

 

(b) The
rights, powers, duties, and obligations hereby conferred or imposed upon the
Property Trustee in respect of any property covered by such appointment shall
be conferred or imposed upon and exercised or performed by the Property Trustee
or by the Property Trustee and such co-trustee or separate trustee jointly, as
shall be provided in the instrument appointing such co-trustee or separate
trustee, except to the extent that under any law of any jurisdiction in which
any particular act is to be performed, the Property Trustee shall be
incompetent or unqualified to perform such act, in which event such rights,
powers, duties and obligations shall be exercised and performed by such
co-trustee or separate trustee.

 

(c) The
Property Trustee at any time, by an instrument in writing executed by it, with
the written concurrence of the Sponsor, may accept the resignation of or remove
any co-trustee or separate trustee appointed under this Section, and, in case a
Debenture Event of Default has occurred and is continuing, the Property Trustee
shall have power to accept the resignation of, or remove, any such co-trustee
or separate trustee without the concurrence of the Sponsor. Upon the written
request of the Property Trustee, the Sponsor shall join with the Property
Trustee in the execution, delivery and performance of all instruments and
agreements necessary or proper to effectuate such resignation or removal. A
successor to any co-trustee or separate trustee so resigning or removed may be
appointed in the manner provided in this Section.

 

(d) No
co-trustee or separate trustee hereunder shall be personally liable by reason
of any act or omission of the Property Trustee or any other trustee hereunder.

 

(e) The
Property Trustee shall not be liable by reason of any act of a co-trustee or
separate trustee.

 

(f) Any
Act of Holders delivered to the Property Trustee shall be deemed to have been
delivered to each such co-trustee and separate trustee.

 

Section 8.10
Resignation and Removal;
Appointment of Successor. No resignation or removal of any Trustee
(the “Relevant Trustee”) and no
appointment of a successor Trustee pursuant to this Article shall become 

 

29

 

effective
until the acceptance of appointment by the successor Trustee in accordance with
the applicable requirements of Section 8.11.

 

Subject
to the immediately preceding paragraph, the Relevant Trustee may resign at any
time by giving written notice thereof to the Sponsor and, in the case of the
Property Trustee and the Delaware Trustee, to the Holders of Preferred
Securities. If the instrument of acceptance by the successor Trustee required
by Section 8.11 shall not have been delivered to the Relevant Trustee
within 30 days after the giving of such notice of resignation, the Relevant
Trustee may petition, at the expense of the Sponsor, any court of competent
jurisdiction for the appointment of a successor Relevant Trustee.

 

Unless
an Event of Default shall have occurred and be continuing, any Trustee may be
removed at any time by Act of the Holders of Common Securities. If an Event of
Default shall have occurred and be continuing, the Property Trustee or the
Delaware Trustee, or both of them, may be removed at such time by Act of the
Holders of a Majority in Liquidation Amount of the Preferred Securities,
delivered to the Relevant Trustee (in its individual capacity and on behalf of
the Trust). An Administrator may be removed by the Holders of Common Securities
at any time. In no event will the Holders of the Preferred Securities have a
right to vote to appoint, remove or replace the Administrators.

 

If
any Trustee shall resign, be removed or become incapable of acting as Trustee,
or if a vacancy shall occur in the office of any Trustee for any reason, at a
time when no Event of Default shall have occurred and be continuing, the
Holders of Common Securities, by Act of the Holders of Common Securities, shall
promptly appoint a successor Trustee or Trustees, and the retiring Trustee
shall comply with the applicable requirements of Section 8.11. If the
Property Trustee or the Delaware Trustee shall resign, be removed or become
incapable of continuing to act as the Property Trustee or the Delaware Trustee,
as the case may be, at a time when an Event of Default shall have occurred and
be continuing, the Holders of Preferred Securities, by Act of the Holders of a
Majority in Liquidation Amount of the Preferred Securities then Outstanding
shall promptly appoint a successor Relevant Trustee or Trustees, and such
successor Trustee shall comply with the applicable requirements of Section 8.11.
If an Administrator shall resign, be removed or become incapable of acting as
Administrator, at a time when an Event of Default shall have occurred and be
continuing, the Holders of Common Securities by Act of the Holders of Common
Securities shall promptly appoint a successor Administrator or Administrators
and such successor Administrator or Administrators shall comply with the
applicable requirements of Section 8.11. If no successor Relevant Trustee
shall have been so appointed by the Holders of Common Securities or the Holders
of Preferred Securities and accepted appointment in the manner required by Section 8.11,
any Holder of Preferred Securities who has been a Holder of Preferred
Securities 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 Relevant Trustee.

 

The
Sponsor shall give notice of each resignation and each removal of a Trustee and
each appointment of a successor Trustee to all Holders in the manner provided
in Section 10.8. Each notice shall include the name of the successor
Relevant Trustee and the address of its Corporate Trust Office if it is the
Property Trustee.

 

Notwithstanding
the foregoing or any other provision of this Declaration, in the event any
Administrator or a Delaware Trustee who is a natural person dies or becomes, in
the opinion of the Sponsor, incompetent or incapacitated, the vacancy created
by such death, incompetence or incapacity may be filled by (a) the
unanimous act of the remaining Administrators if there are at least two of them
or (b) otherwise by the Sponsor (with the successor in each case being a
Person who satisfies the eligibility requirement for Administrators or Delaware
Trustee, as the case may be, set forth in Section 8.7).

 

Upon
the appointment of a successor Delaware Trustee, such successor Delaware
Trustee shall file a Certificate of Amendment to the Certificate of Trust in
accordance with Section 3810 of the Delaware Statutory Trust Act.

 

Section 8.11
Acceptance of Appointment by
Successor. In case of the appointment hereunder of a successor
Trustee such successor Trustee so appointed shall execute, acknowledge and
deliver to the Trust and to 

 

30

 

the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Sponsor or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and if the Property Trustee is the resigning Trustee shall
duly assign, transfer and deliver to the successor Trustee all property and
money held by such retiring Property Trustee hereunder.

 

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

 

Upon
request of any such successor Relevant Trustee, the Trust shall execute any and
all instruments for more fully and certainly vesting in and confirming to such
successor Relevant Trustee all such rights, powers and trusts referred to in
the first or second preceding paragraph, as the case may be.

 

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

 

Section 8.12
Merger, Conversion, Consolidation
or Succession to Business. Any Person into which any of the Trustees
that is not a natural Person may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which such Relevant Trustee shall be a party, or any Person,
succeeding to all or substantially all the corporate trust business of such
Relevant Trustee, shall be the successor of such Relevant Trustee hereunder, provided that such Person shall be
otherwise 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.

 

Section 8.13[Intentionally Omitted].

 

Section 8.14
Property Trustee May File
Proofs of Claim. In case of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other similar judicial proceeding relative to the Trust or any other obligor
upon the Trust Securities or the property of the Trust or of such other obligor
or their creditors, the Property Trustee (irrespective of whether any
Distributions on the Trust Securities shall then be due and payable and
irrespective of whether the Property Trustee shall have made any demand on the
Trust for the payment of any past due Distributions) shall be entitled and
empowered, to the fullest extent permitted by law, by intervention in such
proceeding or otherwise:

 

(a) to
file and prove a claim for the whole amount of any Distributions owing and
unpaid in respect of the Trust Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Property Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Property Trustee, its agents and
counsel) and of the Holders allowed in such judicial proceeding, and

 

31

 

(b) to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Property Trustee and, in the event the
Property Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Property Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Property Trustee, its
agents and counsel, and any other amounts due the Property Trustee.

 

Nothing
herein contained shall be deemed to authorize the Property Trustee to authorize
or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement adjustment or compensation affecting the Trust
Securities or the rights of any Holder thereof or to authorize the Property
Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 8.15
Reports by Property Trustee.

 

(a) The
Property Trustee shall transmit to Holders such reports concerning the Property
Trustee and its actions under this Indenture as may be required pursuant to Section 313
of the Trust Indenture Act (applied as if this Declaration were subject to the
Trust Indenture Act), at the times and in the manner provided pursuant thereto.
Reports so required to be transmitted at stated intervals of not more than 12
months shall be transmitted no later than 30 days after June 30 in each
calendar year, commencing with the first June 30 after the first issuance
of Securities under this Declaration.

 

(b) A
copy of each such report shall, at the time of such transmission to Holders, be
filed by or on behalf of the Property Trustee with each national securities
exchange and such other interdealer quotation system or self-regulatory
organization upon which the Trust Securities are listed or traded, if any, to
the extent that the Trust Securities have been qualified under the Trust
Indenture Act, with the Commission, and with the Sponsor.

 

Section 8.16
Reports to the Property Trustee.
Each of the Sponsor and the Administrators shall provide to the Property
Trustee such documents, reports and information as required by Section 314
of the Trust Indenture Act (if any) and the compliance certificate required by Section 314(a) of
the Trust Indenture Act in the form, in the manner and at the times required by
Section 314 of the Trust Indenture Act. (in each case applied as if this
Declaration were subject to the Trust Indenture Act) The Sponsor and the
Administrators shall annually file with the Property Trustee a certificate
specifying whether such Person is in compliance with all of the terms and
covenants applicable to such Person hereunder.

 

Section 8.17
Evidence of Compliance with
Conditions Precedent. Each of the Sponsor and the Administrators
shall provide to the Property Trustee such evidence of compliance with any
conditions precedent, if any, provided for in this Declaration that relate to
any of the matters set forth in Section 314(c) of the Trust Indenture
Act. Any certificate or opinion required to be given by an officer pursuant to Section 314(c)(1) of
the Trust Indenture Act (applied as if this Declaration were subject to the
Trust Indenture Act) shall be given in the form of an Officers’ Certificate.

 

Section 8.18
Number of Trustees.

 

(a) The
number of Trustees shall be five, provided that the Property Trustee and the
Delaware Trustee may be the same Person. The number of Trustees may be
increased or decreased by the Holder of the Common Securities subject to Section 8.7
and 8.20.

 

(b) If
an Trustee ceases to hold office for any reason, a vacancy shall occur. The vacancy
shall be filled with an Trustee appointed in accordance with Section 8.10.

 

32

 

(c) The
death, resignation, retirement, removal, bankruptcy, incompetence or incapacity
to perform the duties of an Trustee shall not operate to annul, dissolve or
terminate the Trust.

 

Section 8.19
Delegation of Power.

 

(a) Any
Administrator may, by power of attorney consistent with applicable law,
delegate to any other natural person over the age of 21 his or her power for the
purpose of executing any documents contemplated in Section 2.7(a),
including any registration statement or amendment thereto filed with the
Commission, or making any other governmental filing; and

 

(b) The
Administrators shall have power to delegate from time to time to such of their
number or to the Sponsor the doing of such things and the execution of such
instruments either in the name of the Trust or the names of the Administrators
or otherwise as the Administrators may deem expedient, to the extent such
delegation is not prohibited by applicable law or contrary to the provisions of
this Declaration.

 

Section 8.20
Appointment of Administrators.

 

(a) The
Administrators shall initially be Peter A Converse, an individual, William K.
Beauchesne, an individual, and Jennifer Manning, an individual, and their
successors shall be appointed by the Holders of a Majority in Liquidation
Amount of the Common Securities, and they may resign or be removed by the
Holders of a Majority in Liquidation Amount of the Common Securities at any
time. Upon any resignation or removal, the Holders of the Common Securities
shall appoint a successor Administrator. Each successor Administrator shall
sign an agreement agreeing to comply with the terms of this Declaration. If at
any time there is no Administrator, the Property Trustee or any Holder who has
been a Holder of Trust Securities for at least six months may, at the expense
of the Sponsor, petition any court of competent jurisdiction for the
appointment of one or more Administrators.

 

(b) Whenever
a vacancy in the number of Administrators shall occur, until such vacancy is
filled by the appointment of an Administrator in accordance with this Section 8.20,
the Administrators in office, regardless of their number (and notwithstanding
any other provision of this Agreement), shall have all the powers granted to
the Administrators and shall discharge all the duties imposed upon the
Administrators by this Declaration.

 

(c) Notwithstanding
the foregoing or any other provision of this Declaration, if any Administrator
who is a natural person dies or becomes, in the opinion of the Sponsor,
incompetent or incapacitated, the vacancy created by such death, incompetence
or incapacity may be filled by the unanimous acts of the remaining Administrators,
if there were at least two of them prior to such vacancy, and by the Sponsor,
if there were not two such Administrators immediately prior to such vacancy
(with the successor being a Person who satisfies the eligibility requirement
for Administrators set forth in Section 8.7).

 

ARTICLE IX

TERMINATION, LIQUIDATION AND MERGER

 

Section 9.1
Dissolution Upon Expiration Date.
Unless earlier dissolved, the Trust shall automatically dissolve on September 30,
2043 (the “Expiration Date”),
and the Trust Property shall be liquidated in accordance with Section 9.4.

 

Section 9.2
Early Dissolution. The
first to occur of any of the following events is an “Early Dissolution Event”,
upon the occurrence of which the Trust shall dissolve:

 

(a) the
occurrence of a Bankruptcy Event in respect of, or the dissolution or
liquidation of, the Sponsor or any Person to which the Sponsor has transferred
the Common Securities in accordance with Section 5.11;

 

(b) the
written direction to the Property Trustee from the Holder of the Common
Securities at any time to dissolve the Trust and, after satisfaction of any
liabilities of the Trust as required by applicable law, to distribute the 

 

33

 

Debentures
to Holders in exchange for the Preferred Securities (which direction is
optional and wholly within the discretion of the Holders of the Common
Securities), provided that the Holder of the Common Securities shall have
received the prior approval of the Federal Reserve if then required;

 

(c) the
redemption of all of the Preferred Securities in connection with the redemption
of all the Debentures; and

 

(d) the
entry of an order for dissolution of the Trust by a court of competent
jurisdiction.

 

Section 9.3
Termination. The
respective obligations and responsibilities of the Trustees shall terminate
upon the latest to occur of the following: (a) the distribution by the
Property Trustee to Holders of all amounts required to be distributed hereunder
upon the liquidation of the Trust pursuant to Section 9.4, or upon the
redemption of all of the Trust Securities pursuant to Section 4.2; (b) the
payment of any expenses owed by the Trust; and (c) the discharge of all
administrative duties of the Administrators, including the performance of any
tax reporting obligations with respect to the Trust or the Holders. As soon as
is practicable after the last to occur of any of the above events, and after
satisfaction of liabilities to creditors of the Trust as required by applicable
law, including Section 3808 of the Delaware Statutory Trust Act, the
Administrators shall terminate the Trust by filing, at the expense of the
Sponsor, a certificate of cancellation with the Secretary of State of the State
of Delaware. The provisions of Section 8.6 shall survive the termination
of the Trust.

 

Section 9.4
Liquidation.

 

(a) If
an Early Dissolution Event specified in clause (a), (b) or (d) of Section 9.2
occurs or upon the Expiration Date, the Trust shall be liquidated by the
Trustees as expeditiously as the Trustees determine to be possible by
distributing, after satisfaction of liabilities to creditors of the Trust as
provided by applicable law, including Section 3808 of the Delaware
Statutory Trust Act, to each Holder a Like Amount of Debentures, subject to Section 9.4(d).
Notice of liquidation shall be given by the Property Trustee by first-class
mail, postage prepaid mailed not less than 30 nor more than 60 days prior to
the Liquidation Date to each Holder of Trust Securities at such Holder’s
address appearing in the Securities Register. All such notices of liquidation
shall:

 

(i) state
the Liquidation Date;

 

(ii) state
that from and after the Liquidation Date, the Trust Securities will no longer
be deemed to be Outstanding and (subject to Section 9.4(d)) any Trust Securities
Certificates not surrendered for exchange will be deemed to represent a Like
Amount of Debentures; and

 

(iii) provide
such information with respect to the procedures by which Holders may exchange
Trust Securities Certificates for Debentures, or if Section 9.4(d) applies
receive a Liquidation Distribution, as the Administrators or the Property
Trustee shall deem appropriate.

 

(b) Except
where Section 9.2(c) or 9.4(d) applies, in order to effect the
liquidation of the Trust and distribution of the Debentures to Holders, the
Property Trustee, either itself acting as exchange agent or through the
appointment of a separate exchange agent, shall establish a record date for
such distribution (which shall be not more than 30 days prior to the Liquidation
Date and not prior to the date on which notice of such liquidation is given to
the Holders) and, establish such procedures as it shall deem appropriate to
effect the distribution of Debentures in exchange for the Outstanding Trust
Securities Certificates.

 

(c) Except
where Section 9.2(c) or 9.4(d) applies, after the Liquidation
Date, (i) the Trust Securities will no longer be deemed to be Outstanding,
(ii) certificates representing a Like Amount of Debentures will be issued
to Holders of Trust Securities Certificates, upon surrender of such
certificates to the exchange agent for exchange, (iii) any Trust
Securities Certificates not so surrendered for exchange will be deemed to
represent a Like Amount of Debentures bearing accrued and unpaid interest in an
amount equal to the accumulated and unpaid Distributions on such Trust
Securities Certificates until such certificates are so surrendered (and until
such certificates are so 

 

34

 

surrendered,
no payments of interest or principal will be made to Holders of Trust
Securities Certificates with respect to such Debentures) and (iv) all
rights of Holders holding Trust Securities will cease, except the right of such
Holders to receive Debentures upon surrender of Trust Securities Certificates.

 

(d) If,
notwithstanding the other provisions of this Section 9.4, whether because
of an order for dissolution entered by a court of competent jurisdiction or
otherwise, distribution of the Debentures in the manner provided herein is
determined by the Administrators not to be practical, the Trust Property shall
be liquidated, and the Trust shall be wound up in such manner as the Property
Trustee determines. In such event, Holders will be entitled to receive out of
the assets of the Trust available for distribution to Holders, after
satisfaction of liabilities to creditors of the Trust as provided by applicable
law, including Section 3808 of the Delaware Statutory Trust Act, an amount
equal to the Liquidation Amount per Trust Security plus accumulated and unpaid
Distributions thereon to the date of payment (such amount being the “Liquidation Distribution”). If, upon
any such winding up, the Liquidation Distribution can be paid only in part
because the Trust has insufficient assets available to pay in full the
aggregate Liquidation Distribution, then, subject to the next succeeding
sentence, the amounts payable by the Trust on the Trust Securities shall be
paid on a pro rata basis (based upon Liquidation Amounts). The Holders of the Common
Securities will be entitled to receive Liquidation Distributions upon any such
dissolution pro rata (determined as aforesaid) with Holders of Preferred
Securities, except that, if an Event of Default has occurred and is continuing,
the Preferred Securities shall have a priority over the Common Securities as
provided in Section 4.3.

 

Section 9.5
Mergers, Consolidations,
Amalgamations or Replacements of Trust. The Trust may not merge with
or into, consolidate, amalgamate, or be replaced by, or convey, transfer or
lease its properties and assets substantially as an entirety to any corporation
or other body, except pursuant to this Section 9.5 or Section 9.4. At
the request of the Holders of the Common Securities, with the consent of the
Administrators, the Trust may merge with or into, consolidate, amalgamate, or
be replaced by or convey, transfer or lease its properties and assets
substantially as an entirety to a trust organized as such under the laws of any
State; provided that (i) such
successor entity either (a) expressly assumes all of the obligations of
the Trust with respect to the Preferred Securities, or (b) substitutes for
the Preferred Securities other securities having substantially the same terms
as the Preferred Securities (the “Successor
Securities”) so long as the Successor Securities have the same priority
as the Preferred Securities with respect to distributions and payments upon
liquidation, redemption and otherwise, (ii) a trustee of such successor
entity possessing the same powers and duties as the Property Trustee is
appointed to hold the Debentures, (iii) such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease does not adversely
affect the rights, preferences and privileges of the holders of the Preferred
Securities (including any Successor Securities) in any material respect, (iv) such
successor entity has a purpose substantially identical to that of the Trust, (v) prior
to such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Sponsor has received an Opinion of Counsel to the effect that (a) such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
does not adversely affect the rights, preferences and privileges of the Holders
of the Preferred Securities (including any Successor Securities) in any
material respect, and (b) following such merger, consolidation,
amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor
such successor entity will be required to register as an “investment company”
under the Investment Company Act, (vi) prior to such merger,
consolidation, amalgamation, replacement, conveyance, transfer or lease, the
Trust has received an opinion of counsel experienced in such matters that such
merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
will not cause the Trust or the successor entity to be classified as an
association or a partnership for U.S. federal income tax purposes; and (vii) the
Sponsor or its permitted transferee owns all of the common securities of such
successor entity and guarantees the obligations of such successor entity under
the Successor Securities at least to the extent provided by the Guarantee
Agreement. Notwithstanding the foregoing, the Trust shall not, except with the
consent of Holders of all of the Preferred Securities, consolidate, amalgamate,
merge with or into, or be replaced by or convey, transfer or lease its
properties and assets substantially as an entirety to any other entity or
permit any other entity to consolidate, amalgamate, merge with or into, or
replace it if such consolidation, amalgamation, merger, replacement,
conveyance, transfer or lease would cause the Trust or the successor entity to
be taxable as a corporation or classified as other than a grantor trust for
United States Federal income tax purposes.

 

35

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

Section 10.1 Limitation of Rights of Holders.
Except as set forth in Section 9.2, the death, termination, dissolution,
bankruptcy or incapacity of any Person having an interest, beneficial or
otherwise, in Trust Securities shall not operate to terminate this Declaration,
nor dissolve, terminate or annul the Trust, nor entitle the legal
representatives, successors or heirs of such Person or any Holder for such
person, to claim an accounting, take any action or bring any proceeding in any
court for a partition or winding up of the arrangements contemplated hereby,
nor otherwise affect the rights, obligations and liabilities of the parties
hereto or any of them.

 

Section 10.2 Amendment.

 

(a) This Declaration
may be amended from time to time by the Property Trustee, the Administrators
and the Holders of all of the Common Securities, without the consent of any
Holder of the Preferred Securities, (i) to cure any ambiguity, correct or
supplement any provision herein that may be inconsistent with any other
provision herein, or to make any other provisions with respect to matters or
questions arising under this Declaration, which shall not be inconsistent with
the other provisions of this Declaration, or (ii) to modify, eliminate or
add to any provisions of this Declaration to such extent as shall be necessary
to ensure that the Trust will not be taxable as a corporation or classified as
other than a grantor trust for United States Federal income tax purposes at all
times that any Trust Securities are outstanding or to ensure that the Trust
will not be required to register as an “investment company” under the
Investment Company Act, (iii) [intentionally omitted]; (iv) provide
for the appointment of an authentication agent and related provisions, or (v) require
that holders that are not U.S. persons for U.S. federal income tax purposes
irrevocably appoint a U.S. person to exercise any voting rights to ensure that
the Trust will not be treated as a foreign trust for U.S. federal income tax
purposes; provided, however,
that in the case of either clause (i) or (ii), such action shall not
adversely affect in any material respect the interests of any Holder, and any
such amendment of this Declaration shall become effective when notice thereof
is given to the Holders; provided further, that any such amendments of this
Declaration shall become effective when notice thereon is given to the Holders.

 

(b) Except as provided
in Section 10.2(c), any provision of this Declaration may be amended by
the Trustees and the Holders of all of the Common Securities and with (i) the
consent of Holders of at least a Majority in Liquidation Amount of the
Preferred Securities, and (ii) receipt by the Trustees of an Opinion of
Counsel to the effect that such amendment or the exercise of any power granted
to the Trustees in accordance with such amendment will not cause the Trust to
be taxable as a corporation or classified as other than a grantor trust for
United States Federal income tax purposes or affect the treatment of the
Debentures as indebtedness of the Sponsor for United States Federal income tax
purposes or affect the Trust’s exemption from status (or from any requirement
to register) as an “investment company” under the Investment Company Act.

 

(c) In addition to and
notwithstanding any other provision in this Declaration, without the consent of
each affected Holder, this Declaration may not be amended to (i) change
the accrual rate, amount, currency or timing of or the redemption price of any
Distribution on the Trust Securities or otherwise adversely affect the amount
of any Distribution or other payment required to be made in respect of the
Trust Securities as of a specified date, (ii) restrict or impair the right
of a Holder to institute suit for the enforcement of any such payment on or
after such date;  (iii) reduce the
percentage of aggregate Liquidation Amount of Outstanding Preferred Securities,
the consent of whose Holders is required for any such amendment, or the consent
of whose Holders is required for any waiver of compliance with any provision of
this Declaration or of defaults hereunder and their consequences provided for
in this Declaration; (iv) impair or adversely affect the rights and
interests of the Holders in the Trust Property, or permit the creation of any
Lien on any portion of the Trust Property; and notwithstanding any other provision
herein, without the unanimous consent of the Holders, this Section 10.2(c) may
not be amended.

 

(d) Notwithstanding any
other provisions of this Declaration, no Trustee shall enter into or consent to
any amendment to this Declaration that (in the case of the Property Trustee or
Delaware Trustee, to the actual knowledge of a Responsible Officer thereof)
would cause the Trust to fail or cease to qualify for the exemption from status
(or from any requirement to register) as an “investment company” under the
Investment Company Act or to be taxable

 

36

 

as
a corporation or to be classified as other than a grantor trust for United
States Federal income tax purposes or that would cause the Debentures to fail
or cease to be treated as indebtedness of the Sponsor for United States Federal
income tax purposes.

 

(e) Notwithstanding
anything in this Declaration to the contrary, without the consent of the
Sponsor, this Declaration may not be amended in a manner that imposes any
additional obligation on the Sponsor.

 

(f) In the event that
any amendment to this Declaration is made, the Administrators or the Property
Trustee shall promptly provide to the Sponsor a copy of such amendment.

 

(g) Neither the
Property Trustee nor the Delaware Trustee shall be required to enter into any
amendment to this Declaration that affects its own rights, duties or immunities
under this Declaration. The Property Trustee shall be entitled to receive an
Opinion of Counsel and an Officers’ Certificate stating that any amendment to
this Declaration is in compliance with this Declaration.

 

Section 10.3 Separability. In case any
provision in this Declaration or in the Trust Securities Certificates 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.

 

Section 10.4 Governing Law. THIS DECLARATION AND THE RIGHTS AND
OBLIGATIONS OF EACH OF THE HOLDERS, THE TRUST, THE SPONSOR AND THE TRUSTEES
WITH RESPECT TO THIS DECLARATION AND THE TRUST SECURITIES SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT
REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

 

Section 10.5 Payments Due on Non-Business Day.
If the date fixed for any payment on any Trust Security shall be a day that is
not a Business Day, then such payment need not be made on such date but may be made
on the next succeeding day that is a Business Day (except as otherwise provided
in Sections 4.1(a) and 4.2(d)), with the same force and effect as though
made on the date fixed for such payment, and no Distributions shall accumulate
on such unpaid amount for the period after such date.

 

Section 10.6 Successors. This Declaration
shall be binding upon and shall inure to the benefit of any successor to the
Sponsor, the Trust and any Trustee, including any successor by operation of
law. Except in connection with a consolidation, merger or sale involving the
Sponsor that is permitted under Article VIII of the Indenture and pursuant
to which the assignee agrees in writing to perform the Sponsor’s obligations
hereunder, the Sponsor shall not assign its obligations hereunder.

 

Section 10.7 Headings. The Article and Section headings
are for convenience only and shall not affect the construction of this
Declaration.

 

Section 10.8 Reports, Notices and Demands. Any
report, notice, demand or other communication that by any provision of this
Declaration is required or permitted to be given or served to or upon any
Holder or the Sponsor shall be sufficient for every purpose (except as
otherwise provided in Section 1.1) hereunder if in writing and sent by
reputable overnight courier or mailed, first class, postage prepaid, addressed,
(a) in the case of a Holder of Preferred Securities, to such Holder as
such Holder’s name and address may appear on the Securities Register; and (b) in
the case of the Holder of the Common Securities or the Sponsor, to Virginia
Commerce Bancorp, Inc., 14201 Sullyfield Circle, Suite 500,
Chantilly, VA  20151, Attention: William
K. Beauchesne, or to such other address as may be, specified in a written
notice by the Holder of the Common Securities or the Sponsor, as the case may
be, to the Property Trustee. Such report, notice, demand or other communication
to or upon a Holder or the Sponsor shall be deemed to have been given when
received in person, within one (1) Business Day following delivery by
overnight courier, or within three (3) Business Days following delivery by
mail, except that if a notice or other document is refused delivery or cannot
be delivered because of a changed address of which no notice was given,

 

37

 

such
notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver.

 

Any notice, demand or other
communication that by any provision of this Declaration is required or
permitted to be given or served to or upon the Property Trustee, the Delaware
Trustee, the Administrators or the Trust shall be given in writing addressed to
such Person as follows: (a) with respect to the Property Trustee and the
Delaware Trustee, to Wilmington Trust Company, Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001, Attention Corporate Capital
Markets; (b) with respect to the Administrators, to them at the address
above for notices to the Sponsor, marked “Attention: Administrators of VCBI
Capital Trust IV”; and (c) with respect to the Trust, to its principal
office specified in Section 2.2, with a copy to the Property Trustee. Such
notice, demand or other communication to or upon the Trust, the Property
Trustee, the Delaware Trustee or the Administrators shall be deemed to have
been sufficiently given or made only upon actual receipt of the writing by the
Trust, the Property Trustee, the Delaware Trustee or such Administrator.

 

Section 10.9 Agreement Not to Petition. Each
of the Trustees and the Sponsor agree for the benefit of the Holders that,
until at least one year and one day after the Trust has been terminated in
accordance with Article IX, they shall not file, or join in the filing of,
a petition against the Trust under any Bankruptcy
Law or otherwise join in the commencement of any proceeding against the
Trust under any Bankruptcy Law. If the Sponsor takes action in violation of
this Section 10.9, the Property Trustee agrees, for the benefit of
Holders, that at the expense of the Sponsor, it shall file an answer with the
bankruptcy court or otherwise properly contest the filing of such petition by
the Sponsor against the Trust or the commencement of such action and raise the
defense that the Sponsor has agreed in writing not to take such action and
should be estopped and precluded therefrom and such other defenses, if any, as
counsel for the Trustees or the Trust may assert. The provisions of this Section 10.9
shall survive the termination of this Declaration.

 

Section 10.10
Applicability of the Trust
Indenture Act. This Declaration is not being qualified under and is
not governed by the Trust Indenture Act; provided, however, certain
provisions of the Trust Indenture Act are being referred to or incorporated
herein by reference solely to the extent specifically provided herein, and no
other provisions of the Trust Indenture Act, or duties or obligations
thereunder, are intended to be part of this Declaration.

 

Section 10.11 Acceptance of Terms of Declaration,
Guarantee Agreement and Indenture. THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST THEREIN BY
OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR
FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE
BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN SUCH TRUST
SECURITY OF ALL THE TERMS AND PROVISIONS OF THIS DECLARATION, THE GUARANTEE
AGREEMENT AND THE INDENTURE, AND AGREEMENT TO THE SUBORDINATION PROVISIONS AND
OTHER TERMS OF THE GUARANTEE AGREEMENT AND THE INDENTURE, AND SHALL CONSTITUTE
THE AGREEMENT OF THE TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND
PROVISIONS OF THIS DECLARATION SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS
BETWEEN THE TRUST AND SUCH HOLDER AND SUCH OTHERS.

 

38

 

Section 10.12 Counterparts. This instrument may
be executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
one and the same instrument.

 

[Signatures appear on following page]

 

39

 

IN WITNESS WHEREOF, the parties hereto have executed this
Amended and Restated Declaration of Trust.

 

 

	
   

  	
  VIRGINIA
  COMMERCE BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Peter A. Converse

  
	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  WILMINGTON
  TRUST COMPANY

  
	
   

  	
     AS
  PROPERTY TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  WILMINGTON
  TRUST COMPANY

  
	
   

  	
   AS
  DELAWARE TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Peter
  A. Converse, as Administrator

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  William
  K. Beauchesne, as Administrator

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Jennifer
  Manning, as Administrator

  

 

40

 

Exhibit A

 

[FORM OF COMMON SECURITIES CERTIFICATE]

 

THIS
CERTIFICATE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11
OF THE DECLARATION

 

	
  Certificate
  Number

  	
   

  	
  Number of Common Securities:

  
	
  C
  -

  	
   

  	
   

  

 

Certificate Evidencing Common Securities

of

VCBI Capital Trust IV

10.20% Common Securities

(liquidation amount $1,000.00 per Common
Security)

 

VCBI Capital Trust IV, a
statutory trust formed under the laws of the State of Delaware (the “Trust”), hereby certifies that
Virginia Commerce Bancorp, Inc. (the “Holder”) is the registered owner of              
common securities of the Trust representing common undivided beneficial
interests in the assets of the Trust and designated the 10.20% Common
Securities (liquidation amount $1,000.00 per Common Security) (the “Common Securities”). Except in
accordance with Section 5.11 of the Declaration (as defined below), the
Common Securities are not transferable and, to the fullest extent permitted by
law, any attempted transfer hereof other than in accordance therewith shall be
void. The designations, rights, privileges, restrictions, preferences and other
terms and provisions of the Common Securities are set forth in, and this
certificate and the Common Securities represented hereby are issued and shall
in all respects be subject to the terms and provisions of, the Amended and
Restated Declaration of the Trust, dated as of              ,
2008, as the same may be amended from time to time (the “Declaration”), among Virginia
Commerce Bancorp, Inc., as Sponsor, Wilmington Trust Company, as Property
Trustee and Delaware Trustee, the Administrators named therein, and the
holders, from time to time, of undivided beneficial interests in the assets of
the Trust including the designation of the terms of the Common Securities as
set forth therein. The Trust will furnish a copy of the Declaration to the
Holder without charge upon written request to the Trust at its principal place
of business or registered office.

 

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

 

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

 

This Common Securities
Certificate shall be governed by and construed in accordance with the laws of
the State of Delaware without reference to its conflicts of law provisions.

 

A-1

 

IN WITNESS WHEREOF, one of the
Administrators of the Trust has executed this certificate on behalf of the
Trust this          day of                     ,
2008.

 

 

	
   

  	
  VCBI
  CAPITAL TRUST IV

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:
  Administrator

  

 

A-2

 

Exhibit B

[FORM OF PREFERRED SECURITIES
CERTIFICATE]

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAW.  NEITHER THIS SECURITY
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS.  THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
THIS SECURITY ONLY (A) TO THE SPONSOR OR THE TRUST, (B) PURSUANT TO A
REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO
LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A IN
ACCORDANCE WITH RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 (AS APPLICABLE) OF
REGULATIONS UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THIS CAPITAL SECURITY FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY
OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE SPONSOR’S AND THE TRUST’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST OF VCBI CAPITAL
TRUST IV, A COPY OF WHICH MAY BE OBTAINED FROM THE SPONSOR OR THE
TRUST.  HEDGING TRANSACTIONS INVOLVING
THIS SECURITY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
SECURITIES ACT.

 

	
  Certificate
  Number

  	
   

  	
  Number of Preferred Securities

  
	
  C
  -

  	
   

  	
   

  

 

CUSIP NO.

 

Certificate Evidencing Preferred Securities

of

VCBI Capital Trust IV

10.20% Preferred Securities

(liquidation amount $1,000 per Preferred
Security)

 

VCBI Capital Trust IV, a
statutory trust formed under the laws of the State of Delaware (the “Trust”), hereby certifies that                   
(the “Holder”) is the
registered owner of                    
Preferred Securities of the Trust representing an undivided preferred
beneficial interest in the assets of the Trust and designated the VCBI Capital
Trust IV 10.20% Preferred Securities (liquidation amount $1,000.00 per
Preferred Security) (the “Preferred
Securities”). The Preferred Securities are transferable on the books and
records of the Trust, in person or by a duly authorized attorney, upon
surrender of this certificate duly endorsed and in proper form for transfer as
provided in Section 5.5 of the Declaration (as defined below). The
designations, rights, privileges, restrictions, preferences and other terms and
provisions of the Preferred Securities are set forth in, and this certificate
and the Preferred Securities represented hereby are issued and shall in all
respects be subject to the terms and provisions of, the Amended and Restated
Declaration of the Trust, dated as of                     ,
2008, as the same may be amended from time to time (the “Declaration”), among Virginia
Commerce Bancorp, Inc., as Sponsor, Wilmington Trust Company, as Property
Trustee and Delaware Trustee, the Administrators named therein, and the holders,
from time to time of undivided beneficial interests in the assets of the Trust
including the designation of the terms of the Preferred Securities as set forth
therein. The Sponsor has the right under the Indenture to defer the payment of
interest on the Debentures by extending the interest payment period for up to
20 quarterly periods at any time or from time to time, subject to certain
limitations. The Holder is entitled to the benefits of the Guarantee Agreement
entered into by Virginia Commerce Bancorp, Inc., a Virginia corporation,
and Wilmington Trust Company, as guarantee trustee, dated as of

 

B-1

 

               ,
2008, as the same may be amended from time to time (the “Guarantee Agreement”), to the extent
provided therein. The Trust will furnish a copy of the Declaration and the
Guarantee Agreement to the Holder without charge upon written request to the
Trust at its principal place of business or registered office.

 

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

 

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

 

This Preferred Securities
Certificate shall be governed by and construed in accordance with the laws of
the State of Delaware without reference to its conflicts of law provisions.

 

B-2

 

IN
WITNESS WHEREOF, one of
the Administrators of the Trust has executed this certificate on behalf of the
Trust this          day of
September, 2008.

 

 

	
   

  	
  VCBI
  CAPITAL TRUST IV

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:
  Administrator

  

 

This
represents Preferred Securities referred to in the within-mentioned
Declaration.

 

	
   

  	
  WILMINGTON
  TRUST COMPANY, NOT IN ITS

  
	
   

  	
  INDIVIDUAL
  CAPACITY BUT SOLELY

  
	
   

  	
  AS
  PROPERTY TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:
  

  

 

B-3

 

ASSIGNMENT

	
  FOR VALUE RECEIVED, the undersigned assigns and transfers
  this Preferred Security to:

  	
   

  
	
   

  

 

(Insert
assignee’s social security or tax identification number):

 

(Insert
address and zip code of assignee):

 

	
  and
  irrevocably appoints

  	
   

  

 

agent
to transfer this Preferred Securities Certificate on the books of the Trust.
The agent may substitute another to act for him or her.

 

	
  Date:

  	
   

  	
   

  

 

	
  Signature:

  	
   

  

 

(Sign
exactly as your name appears on the other side of this Preferred Securities
Certificate)

 

The
signature(s) should 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
S.E.C. Rule 17Ad-15.

 

B-4

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