Document:

<PAGE>
                                                              EXHIBIT 10.31

                                WAIVER AGREEMENT

      This Waiver Agreement dated August 28, 2006 is between Putnam OTC and
Emerging Growth Fund ("Putnam OTC"); TH Lee, Putnam Emerging Opportunities
Portfolio ("TH Lee"); Putnam Technology Fund ("Technology"); Putnam World Trust
II - Putnam Emerging Information Sciences Fund ("World Trust"); Putnam Discovery
Growth Fund ("Discovery"); EMC Investment Corporation ("EMC"); Van Wagoner
Crossover Fund, L.P. ("Crossover"); Van Wagoner Capital Partners, L.P. ("Capital
Partners"); Wheatley Partners III, L.P. ("Wheatley Partners"); Wheatley
Associates III, L.P. ("Wheatley Associates"); Wheatley Foreign Partners III,
L.P. ("Wheatley Foreign"); Sprout IX Plan Investors, L.P. ("Sprout IX"); Sprout
Entrepreneurs Fund, L.P. ("Sprout Entrepreneurs"); Sprout Capital IX, L.P.
("Sprout Capital"); DLJ Capital Corporation ("DLJ"); Camelot Capital L.P.
("Camelot"); Camelot Capital II L.P. ("Camelot II"); Camelot Offshore Fund
Limited ("Camelot Offshore") and CommVault Systems, Inc. ("CommVault").

                                    RECITALS

      WHEREAS Putnam OTC, TH Lee, Technology, Crossover, EMC, Wheatley Partners,
Wheatley Associates, Wheatley Foreign (collectively, the "2002 Investors") and
CommVault are parties to a Series CC Purchase Agreement dated as of February 14,
2002 (the "2002 Agreement");

      WHEREAS TH Lee, Putnam OTC, World Trust, Discovery, Sprout IX, Sprout
Entrepreneurs, Sprout Capital, DLJ, Wheatley Partners, Wheatley Associates,
Wheatley Foreign, Capital Partners, Camelot, Camelot II, Camelot Offshore
(collectively, the "2003 Investors") and CommVault are parties to a Series CC
Purchase Agreement dated as of September 2, 2003 (the "2003 Agreement");

      WHEREAS Section 5(g) of the 2002 Agreement and Section 5(e) of the 2003
Agreement provide for the holders of the Series CC preferred stock, including
the 2002 Investors and the 2003 Investors, respectively, to have preemptive
rights if CommVault proposes to issue additional capital stock (the "Preemptive
Rights");

      WHEREAS on March 2, 2006, CommVault provided notice to the holders of the
Series CC preferred stock, including the 2002 Investors and the 2003 Investors
of CommVault's desire to issue capital stock in an initial public offering (the
"IPO") pursuant to Section 5(g) of the 2002 Agreement and Section 5(e) of the
2003 Agreement, and such notice expires as of August 29, 2006; and

      WHEREAS CommVault filed a Registration Statement on Form S-1 (File No:
333-132550) (the "Registration Statement") for the IPO, and desires to enter
into this waiver agreement to facilitate the completion of the IPO;
<PAGE>
      NOW THEREFORE, the 2002 Investors and the 2003 Investors, as appropriate,
and CommVault agree as follows:

      1. Notwithstanding Section 5(g) of the 2002 Agreement and Section 5(e) of
the 2003 Agreement, CommVault shall not be required to comply with such sections
in connection with the sale of capital stock in the IPO pursuant to the
Registration Statement.

      2. Except as otherwise specifically amended or modified by this Agreement,
all terms of the 2002 Agreement and the 2003 Agreement shall remain in full
force and effect.

      3. A copy of the Agreement and Declaration of Trust of each Putnam fund or
series investment company (each a "Fund") that is a Massachusetts business trust
is on file with the Secretary of State of the Commonwealth of Massachusetts and
notice is hereby given that this Agreement is executed on behalf of the Trustees
of the relevant Fund as Trustees and not individually and that the obligations
of this Agreement are not binding upon any of the Trustees, officers or
shareholders of the Fund individually but are binding only upon the assets and
property of such Fund..

                                    * * * * *
<PAGE>
      IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each
of the parties hereto as of the day first above written.

                                    COMMVAULT SYSTEMS, INC.

                                    By: /s/ N. Robert Hammer
                                        ----------------------------------------
                                    Name:   N. Robert Hammer
                                          --------------------------------------
                                    Title:  Chairman, President and CEO
                                           -------------------------------------
<PAGE>
                                    PUTNAM OTC AND EMERGING GROWTH FUND

                                    By: Putnam Investment Management, LLC

                                    By: /s/Rick M. Wynn, Jr.
                                        ----------------------------------------
                                    Name:  Rick M. Wynn, Jr.
                                          --------------------------------------
                                    Title: Managing Director
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 1,277,547
                                    Shares under the 2003 Agreement: 239,540

                                    TH LEE, PUTNAM INVESTMENT TRUST -
                                    TH LEE, PUTNAM EMERGING OPPORTUNITIES
                                    PORTFOLIO

                                    By: TH Lee, Putnam Capital Management, LLC

                                    By: /s/ Rick M. Wynn, Jr.
                                        ----------------------------------------
                                    Name:   Rick M. Wynn, Jr.
                                          --------------------------------------
                                    Title:  Managing Director
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 1,916,321
                                    Shares under the 2003 Agreement: 319,387

                                    PUTNAM DISCOVERY GROWTH FUND
                                    (Formerly Putnam Voyager Fund II successor
                                    in interest by way of merger to Putnam Funds
                                    Trust - Putnam Technology Fund)

                                    By: /s/ Rick M. Wynn, Jr.
                                        ----------------------------------------
                                    Name:   Rick M. Wynn, Jr.
                                          --------------------------------------
                                    Title:  Managing Director
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 319,387

                                    PUTNAM WORLD TRUST II - PUTNAM EMERGING
                                    INFORMATION SCIENCES FUND

                                    By: The Putnam Advisory Company, LLC

                                    By: /s/ Rick M. Wynn, Jr.
                                        ----------------------------------------
                                    Name:   Rick M. Wynn, Jr.
                                          --------------------------------------
                                    Title:  Managing Director
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 159,693
<PAGE>
                                    PUTNAM DISCOVERY GROWTH FUND

                                    By: Putnam Investment Management, LLC

                                    By: /s/ Rick M. Wynn, Jr.
                                        ----------------------------------------
                                    Name:   Rick M. Wynn, Jr.
                                          --------------------------------------
                                    Title:  Managing Director
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 79,847
<PAGE>
                                    EMC INVESTMENT CORPORATION

                                    By:/s/ Paul T. Dacier
                                       -----------------------------------------
                                    Name:  Paul T. Dacier
                                          --------------------------------------
                                    Title: President
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 638,774
<PAGE>
                                    VAN WAGONER CROSSOVER FUND, L.P.

                                    By: /s/ Garrett Van Wagoner
                                        ----------------------------------------
                                    Name:   Garrett Van Wagoner
                                          --------------------------------------
                                    Title:  General Partner
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 638,774

                                    VAN WAGONER CAPITAL PARTNERS, L.P.

                                    By: /s/ Garrett Van Wagoner
                                        ----------------------------------------
                                    Name:   Garrett Van Wagoner
                                          --------------------------------------
                                    Title:  General Partner
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 15,969
<PAGE>
                                    WHEATLEY PARTNERS III, L.P.
                                    By: Wheatley Partners III LLC, its General
                                        Partner

                                    By: /s/ Barry Rubenstein
                                        ----------------------------------------
                                    Name:   Barry Rubenstein
                                          --------------------------------------
                                    Title:  CEO
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 446,162
                                    Shares under the 2003 Agreement: 335,296

                                    WHEATLEY ASSOCIATES III, L.P.
                                    By: Wheatley Partners III LLC, its General
                                        Partner

                                    By: /s/ Barry Rubenstein
                                        ----------------------------------------
                                    Name:   Barry Rubenstein
                                          --------------------------------------
                                    Title:  CEO
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 95,860
                                    Shares under the 2003 Agreement: 69,958

                                    WHEATLEY FOREIGN PARTNERS III, L.P.
                                    By: Wheatley Partners III LLC, its General
                                        Partner

                                    By: /s/ Barry Rubenstein
                                        ----------------------------------------
                                    Name:   Barry Rubenstein
                                          --------------------------------------
                                    Title:  CEO
                                           -------------------------------------
                                    Shares under the 2002 Agreement: 96,752
                                    Shares under the 2003 Agreement: 73,826
<PAGE>
                                    DLJ CAPITAL CORPORATION

                                    By: /s/ Amy M. Yeung
                                        ----------------------------------------
                                    Name:   Amy M. Yeung
                                          --------------------------------------
                                    Title:  Vice President
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 3,899

                                    SPROUT IX PLAN INVESTORS, L.P.
                                    By: DLJ LBO Plans Management Corporation II
                                    Its: General Partner

                                    By: /s/  Amy M. Yeung
                                        ----------------------------------------
                                    Name: Amy M. Yeung
                                          --------------------------------------
                                    Its:  Attorney-in-Fact
                                         ---------------------------------------
                                    Shares under the 2003 Agreement: 82,149

                                    SPROUT ENTREPRENEURS FUND, L.P.
                                    By: DLJ Capital Corporation
                                    Its: Managing General Partner

                                    By: /s/ Amy M. Yeung
                                        ----------------------------------------
                                    Name:   Amy M. Yeung
                                          --------------------------------------
                                    Title: Vice President
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 7,011

                                    SPROUT CAPITAL IX, L.P.
                                    By: DLJ Capital Corporation
                                    Its: Managing General Partner

                                    By: /s/ Amy M. Yeung
                                        ----------------------------------------
                                    Name:   Amy M. Yeung
                                          --------------------------------------
                                    Title:  Vice President
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 1,778,878

<PAGE>
                                    CAMELOT CAPITAL L.P.

                                    By: /s/ Scott Smith
                                        ----------------------------------------
                                    Name:   Scott Smith
                                          --------------------------------------
                                    Title:  Managing Partner
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 220,383

                                    CAMELOT CAPITAL II L.P.

                                    By:   /s/ Scott Smith
                                        ----------------------------------------
                                    Name: /s/ Scott Smith
                                          --------------------------------------
                                    Title: Managing Partner
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 15,763

                                    CAMELOT OFFSHORE FUND LIMITED

                                    By: /s/ Scott Smith
                                        ----------------------------------------
                                    Name:   Scott Smith
                                          --------------------------------------
                                    Title:  Managing Director
                                           -------------------------------------
                                    Shares under the 2003 Agreement: 83,241exv4w1

 

EXHIBIT 4.1

 

FIFTH SUPPLEMENTAL INDENTURE

between

U.S. BANCORP

and

WILMINGTON TRUST COMPANY,

as Trustee

DATED AS OF AUGUST 30, 2006

 

Supplement to Junior Subordinated Indenture dated as of April 28, 2005,

as supplemented by that certain First Supplemental Indenture

dated as of August 3, 2005 and that certain Second Supplemental Indenture

dated as of December 29, 2005 and that certain Third Supplemental Indenture

dated as of March 17, 2006 and that certain Fourth Supplemental Indenture

dated as of April 12, 2006

 

 

 

     FIFTH SUPPLEMENTAL INDENTURE, dated as of August 30, 2006 (this “Supplemental Indenture”),
among U.S. BANCORP, a Delaware corporation (hereinafter called the “Company”), having its principal
office at 800 Nicollet Mall, Minneapolis, Minnesota 55402, WILMINGTON TRUST COMPANY, a Delaware
banking corporation, as successor Trustee (hereinafter called the “Trustee”) and U.S. Bank National
Association, as Securities Registrar and Paying Agent.

RECITALS

     WHEREAS, the Company and Delaware Trust Company, National Association, a national banking
association organized and existing under the laws of the United States of America, as original
Trustee (hereinafter called the “Original Trustee”) have entered into that certain Junior
Subordinated Indenture, dated as of April 28, 2005 (the “Base Indenture”), which was amended and
supplemented by the First Supplemental Indenture, dated as of August 3, 2005 (the “First
Supplemental Indenture”), which was further amended and supplemented by the Second Supplemental
Indenture, dated as of December 29, 2005, among the Company, the Original Trustee and the Trustee
(the “Second Supplemental Indenture”), which was further amended and supplemented by the Third
Supplemental Indenture, dated as of March 17, 2006, (the “Third Supplemental Indenture”), and which
was further amended and supplemented by the Fourth Supplemental Indentures, dated as of April 12,
2006 (the “Fourth Supplemental Indenture” and, together with the Junior Subordinated Indenture, the
First Supplemental Indenture, the Second Supplemental Indenture, and the Third Supplemental
Indenture, the “Indenture”); providing for the issuance from time to time of Securities;

     WHEREAS, pursuant to Section 2.1 and 3.1 of the Indenture, the Company desires to provide for
the establishment of a new series of Securities under the Indenture to be known as its 6.60 %
Income Capital Obligation NotesSM due 2066, the form and substance of such Securities
and the terms, provisions and conditions thereof to be set forth as provided in the Indenture and
this Supplemental Indenture;

     WHEREAS, the conditions set forth in the Indenture for the execution and delivery of this
Supplemental Indenture have been satisfied; and

     WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the
Company and the Trustee, in accordance with its terms, and a valid amendment of, and supplement to,
the Indenture have been done.

     NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the
Holders thereof from time to time on or after the date hereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all such Holders, that the Indenture is
supplemented and amended, to the extent and for the purposes expressed herein, as follows:

 

			
	SM	 	Income Capital Obligation Notes is a
service mark of Merrill Lynch & Co., Inc.

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ARTICLE I

DEFINITIONS

     Section 1.1. Capitalized terms not otherwise defined herein shall have the meanings set forth
in the Indenture.

     Section 1.2 In addition, the following terms used in this Supplemental Indenture have the
following respective meanings:

     “APM Commencement Date” means, with respect to any Deferral Period, the earlier of (i)
the Date on which the Company elects to pay any current interest on the ICONs, and (ii) the fifth
anniversary of the commencement of such Deferral Period.

     “APM Period” means, with respect to any Deferral Period, a period commencing on an APM
Commencement Date and ending on the next Interest Payment Date on which the Company has raised an
amount of Eligible Proceeds at least equal to the aggregate amount of Deferred Interest, including
Additional Interest thereon, on the ICONs.

     “Bankruptcy Event” means any of the events set forth in Section 5.1(4), (5), (6) or
(7) of the Indenture.

     “Base Indenture” has the meaning set forth in the Declarations.

     “Change in 1940 Act Law” means a change (including any announced proposed change) in
law or regulation or a change in interpretation or application of law or regulation by any
legislative body, court, governmental agency or regulatory authority.

     “Company” has the meaning set forth in the Declarations.

     “Current Stock Market Price” of the Common Stock on any date shall mean (a) the
closing sale price per share (or if no closing sale price is reported, the average of the bid and
ask prices or, if more than one in either case, the average of the average bid and the average ask
prices) on that date as reported in composite transactions by the New York Stock Exchange or, if
the Common Stock is not then listed on the New York Stock Exchange, as reported by the principal
U.S. securities exchange or The Nasdaq National Market on which the Common Stock is traded or
quoted, (b) if the Common Stock is not either listed on any U.S. securities exchange or quoted on
The Nasdaq National Market on the relevant date, the last quoted bid price for the Common Stock in
the over-the-counter market on the relevant date as reported by the National Quotation Bureau or
similar organization, or (c) if the Common Stock is not so quoted, the average of the mid-point of
the last bid and ask prices for the Common Stock on the relevant date from each of at least three
nationally recognized independent investment banking firms selected by the Company for this
purpose.

     “Deferral Period” means each period beginning on an Interest Payment Date with respect
to which the Company elects pursuant to Section 2.1(g) to defer all or part of any interest payable
on such date and ending on the earlier of (a) the tenth anniversary of such Interest

- 2 -

 

Payment Date and (b) the next Interest Payment Date on which the Company has paid all Deferred
Interest (including Additional Interest thereon).

     “Deferred Interest” means, as of any particular time, accrued interest that was not
paid on the applicable Interest Payment Date or at any time thereafter and that has not been
cancelled pursuant to Section 2.1(h)(v) of this Supplemental Indenture.

     “Eligible Equity” means (a) Qualifying Warrants and shares of the Company’s Common
Stock (including treasury shares and shares of Common Stock sold pursuant to the Company’s dividend
reinvestment plan and employee benefit plans) and/or (b) shares of the Company’s Perpetual
Non-Cumulative Preferred Stock.

     “Eligible Equity Proceeds” means, with respect to any Interest Payment Date, the net
cash proceeds (after underwriters’ or placement agents’ fees, commissions or discounts and other
expenses relating to the issuances) received by the Company during the 180-day period prior to such
Interest Payment Date from the sale or offering of any combination of Eligible Equity (subject to
the Warrant and Common Stock Issuance Cap and the Preferred Stock Issuance Cap) to persons that are
not Affiliates of the Company.

     “First Supplemental Indenture” has the meaning set forth in the Declarations.

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

     “Guarantee” has the meaning set forth in Section 2.1(a).

     “ICONs” has the meaning set forth in Section 2.1(a) hereof.

     “Indenture” has the meaning set forth in the Declarations.

     “Investment Company Event” means the receipt by the Company and the Trust of an
opinion of an independent counsel experienced in matters relating to investment companies (which
opinion shall not have been rescinded), to the effect that, as a result of any Change in 1940 Act
Law, there is more than an insubstantial risk that the Trust is or will be considered an
“investment company” that is required to be registered under the Investment Company Act of 1940,
which Change in 1940 Act Law becomes effective on or after the date of original issuance of the
Capital Securities.

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

     (a) trading in securities generally (or shares of the Company’s securities
specifically) on the New York Stock Exchange or any other national securities exchange or
over-the-counter market on which the Company’s common stock and/or preferred stock is then
listed or traded shall have been suspended or its settlement generally shall have been
materially disrupted;

     (b) the Company would be required to obtain the consent or approval of a regulatory
body (including, without limitation, any securities exchange) or governmental

- 3 -

 

authority to issue Eligible Equity, and the Company shall have failed to obtain that
consent or approval notwithstanding the Company’s commercially reasonable efforts to obtain
that consent or approval (including, without limitation, (1) failing to obtain the approval
of the FRB for the issuance, offer and sale of Eligible Equity, if such approval is required
by the FRB, after having notified the FRB of the commencement of the Deferral Period and
sought such approval in accordance with Section 2.1(h)(iii) hereof or (2) failing to obtain
approval of the FRB for the use of the proceeds of such issuance to pay Deferred Interest);
or

     (c) an event occurs and is continuing as a result of which the offering document for
the offer and sale of the Company’s Eligible Equity would, in the Company’s reasonable
judgment, contain an untrue statement of a material fact or omit to state a material fact
required to be stated in that offering document or necessary to make the statements in that
offering document not misleading and either (1) the disclosure of that event at the time the
event occurs, in the Company’s reasonable judgment, would have a material adverse effect on
the Company’s business or (2) the disclosure relates to a previously undisclosed proposed or
pending material business transaction, the disclosure of which would impede the Company’s
ability to consummate that transaction, provided that one or more events described in this
subsection (c) shall not constitute a Market Disruption Event with respect to more than one
Interest Payment Date.

     “MDE Certification” means an Officer’s Certificate of the Company delivered in advance
of an Interest Payment Date certifying that:

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

     (b) either (1) the Market Disruption Event continued for the entire period from the
Business Day after the immediately preceding Interest Payment Date to the Business Day
immediately preceding the date on which such certification is provided or (2) the Market
Disruption Event continued for only part of such period but the Company was unable after
commercially reasonable efforts to raise sufficient Eligible Equity Proceeds during the rest
of that period to pay all accrued and unpaid interest due on the Interest Payment Date with
respect to which such MDE Certification is being delivered; and

identifying the type of Market Disruption Event that has occurred with respect to the applicable
Interest Payment Date, and the date(s) on which such event occurred or existed.

     “Original Trustee” has the meaning set forth in the Declarations.

     “Pari Passu Securities” means (a) indebtedness (1) the terms of which provide that
such indebtedness ranks equally with the Company’s 6.35% Income Capital Obligation Notes
underlying the trust preferred securities issued by USB Capital VIII, the Company’s Junior
Subordinated Notes underlying the 6.189% Fixed-to-Floating Rate Normal Income Trust Securities
issued by USB Capital IX, the Company’s 6.50% Income Capital Obligation Notes underlying the trust
preferred securities issued by USB Capital X and the ICONs and (2) that qualifies as, or is issued
to financing vehicles issuing securities that qualify as, Tier 1 capital of

- 4 -

 

the Company at the time of issuance under the capital guidelines of the FRB; and (b)
guarantees of indebtedness described in clause (i) or securities issued by one or more financing
vehicles described in clause (a)(2).

     “Perpetual Non-Cumulative Preferred Stock” means shares of the Company’s perpetual
non-cumulative preferred stock that (a) are subject to a replacement capital covenant similar to
the Replacement Capital Covenant and/or (b) contain provisions which would oblige the Company upon
the occurrence of certain events to either defer dividends or fund dividends pursuant to an
alternative payment mechanism similar to the provisions set forth in Section 2.1(h) hereto.

     “Preferred Stock Issuance Cap” has the meaning set forth in Section 2.1(h)(i).

     “Qualifying Warrants” means net share settled warrants to purchase Common Stock that
(a) have an exercise price per share greater than the Current Stock Market Price as of the date of
issuance thereof and (b) the Company is not entitled to redeem for cash and the holders of which
are not entitled to require the Company to repurchase for cash in any circumstance.

     “Replacement Capital Covenant” means the Replacement Capital Covenant, dated as of
August 30, 2006, of the Company, as the same may be amended or supplemented from time to time in
accordance with the provisions thereof.

     “Regulatory Capital Event” means the reasonable determination by the Company that, as
a result of: (1) any amendment to, or change (including any announced prospective change) in, the
laws or any applicable regulation of the United States or any political subdivision that is enacted
or becomes effective after the initial issuance of the Capital Securities; or (2) any official or
administrative pronouncement or action or judicial decision for interpreting or applying such laws
or regulations, which is effective or announced on or after the initial issuance of the Capital
Securities, there is more than an insubstantial risk of impairment of the Company’s ability to
treat the Capital Securities (or any substantial portion thereof) as Tier 1 capital (or its then
equivalent) for purposes of the capital adequacy guidelines of the FRB in effect and applicable to
the Company.

     “Second Supplemental Indenture” has the meaning set forth in the Declarations.

     “Special Event” means a Tax Event, a Regulatory Capital Event or an Investment Company
Event.

     “Supplemental Indenture” has the meaning set forth in the Declarations.

     “Tax Event” means the receipt by the Company or the Trust of an opinion of tax counsel
(which may be the Company’s counsel or counsel of an Affiliate but not an employee and must be
reasonably acceptable to the Property Trustee) experienced in tax matters stating 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
affecting taxation that is enacted or becomes effective after the initial issuance of the Capital
Securities; or interpretation or application of such laws or regulations by any court, governmental
agency or regulatory authority that is announced after the initial issuance of the

- 5 -

 

Capital Securities, there is more than an insubstantial risk that (1) 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 interest received or accrued on the ICONs; (2) interest payable by the Company on the
ICONs is not, or within 90 days of the date of such opinion will not be, deductible, in whole or in
part, by the Company, for United States federal income tax purposes; or (3) the Trust is, or will
be within 90 days of the date of such opinion, subject to more than a minimal amount of other
taxes, duties, assessments or other governmental charges.

     “Third Supplemental Indenture” has the meaning set forth in the Declarations.

     “Trust” has the meaning set forth in Section 2.1(a) hereof.

     “Trust Agreement” has the meaning set forth in Section 2.1(a) hereof.

     “Trustee” has the meaning set forth in the Declarations.

     “Warrant and Common Stock Issuance Cap” has the meaning set forth in Section
2.1(h)(i).

ARTICLE II

TERMS OF SERIES OF SECURITIES

     Section 2.1. Pursuant to Sections 2.1 and 3.1 of the Indenture, there is hereby established
a series of Securities, the terms of which shall be as follows:

     (a) Designation. The Securities of this series shall be known and designated
as the “6.60% Income Capital Obligation NotesSM due 2066” of the Company (the
“ICONs”). The ICONs initially shall be issued to USB Capital XI, a Delaware statutory trust
(the “Trust”). The Trust Agreement for the Trust shall be the Amended and Restated Trust
Agreement, dated as of August 30, 2006, among the Company, as Sponsor, Wilmington Trust
Company, as Delaware Trustee and Property Trustee, and the Administrative Trustees named
therein (the “Trust Agreement”). The Guarantee will be issued pursuant to the Guarantee
Agreement, dated as of August 30, 2006 (the “Guarantee”), between the Company and
Wilmington Trust Company, as Guarantee Trustee.

     (b) Aggregate Principal Amount. The maximum aggregate principal amount of the
ICONs which may be authenticated and delivered under the Indenture and this Supplemental
Indenture is $806,000,000 (except for ICONs authenticated and delivered upon registration of
transfer of, or exchange for, or in lieu of, other ICONs pursuant to Section 3.4, 3.5, 3.6,
9.6 or 11.6 of the Indenture).

 

			
	SM	 	Income Capital Obligation Notes is a
service mark of Merrill Lynch & Co., Inc.

- 6 -

 

     (c) Denominations. The ICONs will be issued only in fully registered form,
and the authorized minimum denomination of the ICONs shall be $25 principal amount and any
integral multiple thereof.

     (d) Maturity. The principal amount of the ICONs shall be payable in full on
September 15, 2066, subject to and in accordance with the provisions of the Indenture and
this Supplemental Indenture.

     (e) Rate of Interest. The rate at which the ICONs shall bear interest will be
6.60% per annum; the date from which such interest shall accrue is August 30, 2006; the
Interest Payment Dates (as defined in the Indenture) on which such interest shall be payable
are March 15, June 15, September 15 and December 15 of each year, commencing December 15,
2006. Interest payments not paid when due will themselves accrue Additional Interest at the
annual rate of 6.60% on the amount of unpaid interest, to the extent permitted by law,
compounded quarterly. The amount of interest payable for any period will be computed on the
basis of a 360-day year comprised of twelve 30-day months. The amount of interest payable
for any period shorter than a full quarterly period will be computed on the basis of a
30-day month and, for periods of less than a month, the actual number of days elapsed per
30-day month.

     (f) To Whom Interest Payable. Interest will be payable to the person in whose
name the ICONs are registered at the close of business on the Regular Record Date next
preceding the Interest Payment Date, except that, interest payable on the Stated Maturity of
the principal of the ICONs shall be paid to the Person to whom principal is paid.

     (g) Option to Defer Interest Payments. Section 3.11 of the Indenture shall
not apply to the ICONS, which shall be governed by the following provisions.

     (i) The Company shall have the right, at any time and from time to time prior
to the Stated Maturity of the ICONs, to defer the payment of interest thereon for
one or more Deferral Periods consisting of no more than 20 consecutive quarters
without becoming subject to the obligations to issue Eligible Equity and pay
Deferred Interest pursuant to Section 2.1(h) of this Supplemental Indenture. The
Company shall also have the right, at any time and from time to time prior to the
Stated Maturity of the ICONs, to defer payment of interest thereon for one or more
Deferral Periods consisting of no more than 40 consecutive quarters without giving
rise to an Event of Default under Section 2.1(i). The Company may elect to so
defer payment of interest by delivering to the Trustee written notice of such
election at least ten and not more than 60 Business Days prior to the applicable
Interest Payment Date. Notwithstanding the foregoing, no Deferral Period shall
extend beyond the Stated Maturity of the ICONs.

     (ii) During any Deferral Period, the Company shall not, and shall not permit
any Subsidiary of the Company to, (1) 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 (which includes common and

- 7 -

 

preferred stock), (2) make any payment of principal of or interest or premium,
if any, on or repay, repurchase or redeem any debt securities of the Company
(including the Company’s 6.35% Income Capital Obligation Notes underlying the trust
preferred securities issued by USB Capital VIII, the Company’s Junior Subordinated
Notes underlying the 6.189% Fixed-to-Floating Rate Normal Income Trust Securities
issued by USB Capital IX, the Company’s 6.50% Income Capital Obligation Notes
underlying the trust preferred securities issued by USB Capital X) that rank pari
passu with or junior in interest to the ICONs or (3) make any guarantee payments
with respect to any guarantee by the Company of the debt securities of any
Subsidiary of the Company if such guarantee ranks pari passu with or junior in
interest to the ICONs, other than in the case of each of clauses (1), (2) and (3):
(A) any dividends or distributions in additional shares of the Company’s capital
stock (which includes common and preferred stock), (B) any payments under the
Guarantee with respect to the Capital Securities and common securities of the Trust,
(C) any declaration or payment of a dividend in connection with the implementation
of a stockholders’ rights plan, or any issuance of stock under any such plan in the
future or the redemption or repurchase of any such rights pursuant thereto, and (D)
any purchases of Common Stock related to the issuance of Common Stock or rights
under any of the Company’s benefits plans for its directors, officers or employees.

     (iii) Upon the payment of all Deferred Interest (including any Additional
Interest thereon) then due on the ICONs (that has not been cancelled), the Company
may elect to begin a new Deferral Period, which shall not extend beyond the Stated
Maturity of the ICONs. At the end of ten consecutive years of a Deferral Period,
the Company shall pay all Deferred Interest (including Additional Interest thereon)
on the ICONs that has not been cancelled to the extent permitted by applicable law,
to the Persons in whose names the ICONs are registered at the close of business on
the Regular Record Date with respect to the Interest Payment Date at the end of such
Deferral Period.

     (iv) Subject to Section 2.1(h)(vi), in the case of any Deferral Period that
does not terminate on or prior to the first anniversary of the commencement of such
Deferral Period, the restrictions set forth in Section 2.1(g)(ii) shall continue in
effect in respect of any redemption, purchase or repurchase, acquisition or
liquidation payment of the Company’s securities that rank pari passu with or junior
in interest to the ICONs until the first anniversary of the termination of such
Deferral Period.

     (h) Alternative Payment Mechanism; Payment of Deferred Interest. With regard
to each Interest Payment Date during any APM Period subsequent to the APM Commencement Date,
except for any Interest Payment Date for which the Company has delivered a timely MDE
Certification pursuant to Section 2.1(h)(ii) below or as otherwise provided below in this
Section 2.1(h), the Company covenants to issue and sell on or immediately following an APM
Commencement Date, Eligible Equity until the Company has raised an amount of Eligible Equity
Proceeds at least equal to the aggregate amount of Deferred Interest (including Additional
Interest thereon) on the ICONs that will be

- 8 -

 

accrued and unpaid as of the next Interest Payment Date, and the Company shall apply
such Eligible Equity Proceeds to pay such Deferred Interest on or before the next Interest
Payment Date in accordance with Section 2.1(h)(iv) and, if applicable, Section 2.1(p) of
this Supplemental Indenture. Except as provided below in this Section 2.1(h), during any
APM Period and on any date of redemption or repurchase, the Company covenants not to pay any
Deferred Interest (including Additional Interest thereon) from any source other than
Eligible Equity Proceeds. For the avoidance of doubt, the Company may pay current interest
at all times from any available funds. If, due to a Market Disruption Event, the Company is
able to raise some but not all, Eligible Equity Proceeds in respect of an Interest Payment
Date, the Company will apply any available Eligible Equity Proceeds to pay Deferred Interest
on or before the such Interest Payment Date; provided, however, that if the Company has
outstanding securities in addition to the ICONs under which the Company is obligated to sell
Eligible Equity and apply the net proceeds to the payment of Deferred Interest, then on any
date and for any period the amount of net proceeds received by the Company from such sales
and available for the payment of Deferred Interest shall be applied to the ICONs and those
other securities on a pro rata basis, or on such other basis as the FRB may approve.

     (i) The Company shall not be required to issue Eligible Equity pursuant to
this Section 2.1(h) to the extent that:

     (1) with respect to Deferred Interest attributable to the first 20
consecutive quarters of any Deferral Period (including Additional Interest
thereon), the net proceeds of any issuance of Qualifying Warrants and shares
of Common Stock applied to pay interest on the ICONs pursuant to this
Section 2.1(h), together with the net proceeds of all prior issuances in
connection with such Deferral Period of Qualifying Warrants or shares of
Common Stock so applied, would exceed an aggregate amount equal to 2% of the
product of the average of the Current Stock Market Prices of the Common
Stock on the ten consecutive trading days ending on the fourth trading day
immediately preceding the date of issuance multiplied by the total number of
issued and outstanding shares of Common Stock as of the date of the most
recent publicly available consolidated financial statements of the Company
(the “Warrant and Common Stock Issuance Cap”); provided that once
the Company reaches the Warrant and Common Stock Issuance Cap, the Company
shall not be required to issue more Qualifying Warrants or Common Stock with
respect to Deferred Interest attributable to the first twenty consecutive
quarters of any Deferral Period (including Additional Interest thereon) even
if the amount referred to in this clause (1) subsequently increases because
of a subsequent increase in the sale price of Common Stock or the number of
outstanding shares of Common Stock, or

     (2) the net proceeds of any issuance of Perpetual Non-Cumulative
Preferred Stock applied to pay interest on the ICONs pursuant to this
Section 2.1(h), together with the net proceeds of all prior issuances of
Perpetual Non-Cumulative Preferred Stock so applied, would exceed 25%

- 9 -

 

of the aggregate principal amount of the ICONs initially issued under
the Indenture (the “Preferred Stock Issuance Cap”).

     (ii) On or after an APM Commencement Date during any Deferral Period, the
Company shall have the right to defer payment of interest due on the next Interest
Payment Date and not be subject to the requirements to issue Eligible Equity and
apply Eligible Equity Proceeds to pay Deferred Interest pursuant to Section 2.1(h),
if the Company shall have delivered to the Trustee an MDE Certification with respect
to such Interest Payment Date no more than 20 Business Days and no less than ten
Business Days in advance thereof, provided that the Company may not defer interest
pursuant to this clause (ii) on or after the Stated Maturity or redemption of the
ICONs, or if such deferral would result in the Company having failed to pay accrued
interest in full on more than forty (40) consecutive Interest Payment Dates.

     (iii) During any Deferral Period, the Company shall notify the FRB prior to or
promptly after an APM Commencement Date and shall seek the approval of the FRB if
and when required from time to time for the issuance, offer or sale of Eligible
Equity and the application of the Eligible Equity Proceeds to pay Deferred Interest.
In the event the FRB shall have disapproved of the sale of Eligible Equity pursuant
to this Section 2.1(h), the Company shall be permitted to pay Deferred Interest from
any source. In the event the FRB shall not disapprove of the sale of Eligible
Equity, but shall have nonetheless disapproved of the use of the Eligible Equity
Proceeds to pay Deferred Interest, the Company may use such Eligible Equity Proceeds
for other purposes and shall be permitted to pay Deferred Interest from any source.

     (iv) To the extent that the Company applies Eligible Equity Proceeds to pay
Deferred Interest pursuant to this Section 2.1(h), such Eligible Equity Proceeds
shall be allocated first to payments of Deferred Interest (including Additional
Interest thereon) in chronological order based on the date each such interest
payment was first deferred. The payment of interest from any other source shall be
applied to current interest as notified to the Trustee prior to the applicable
Interest Payment Date. To the extent any payment made by the Company with respect
to any Deferred Interest (including Additional Interest thereon) is insufficient to
pay Deferred Interest (including Additional Interest thereon) in full, such payment
shall be applied pro rata to the outstanding ICONs. If the Company has outstanding
securities in addition to the ICONs under which it is obligated to sell Eligible
Equity and apply the Eligible Equity Proceeds to the payment of deferred interest,
then on any date and for any period the amount of net proceeds received by the
Company from those sales and available for payment of the deferred interest shall be
applied to the ICONs and those other securities on a pro rata basis in proportion to
the total amounts that are due on the ICONs and such other securities, or on such
other basis as the FRB may approve.

     (v) Each Holder, by such Holder’s acceptance of the ICONs, consents to and
agrees that, in the event that a Deferral Period has continued for 40

- 10 -

 

consecutive quarters following the commencement of such Deferral Period, if (1)
no Event of Default is continuing and (2) the Company has not raised sufficient
proceeds from the sale of Eligible Equity to pay all Deferred Interest (including
Additional Interest thereon) attributable to the first 20 quarters of such Deferral
Period solely due to the Warrant and Common Stock Issuance Cap and the Preferred
Stock Issuance Cap, then the obligation of the Company to pay any such amount of
Deferred Interest (including Additional Interest thereon) attributable to those
first 20 quarters remaining unpaid as a result of such caps shall be permanently
cancelled. In the event that a Deferral Period has continued for 40 consecutive
quarters following the commencement of such Deferral Period and an Event of Default
is continuing, then the obligation of the Company to pay Deferred Interest shall not
be cancelled except as set forth in Section 2.1(l) of this Supplemental Indenture.

     (vi) If the Company engages in any transaction that is subject to Section 8.1
of the Indenture, where immediately after the consummation of such transaction more
than 50% of the voting stock of the Person formed by such transaction, or the Person
that is the surviving entity of such transaction, or the Person to whom such
properties and assets are conveyed, transferred or leased in such transaction, is
owned by the shareholders of the other party to such transaction, then the
restrictions of this Section 2.1(h) shall not apply to any interest on the ICONs
that is deferred and unpaid as of the date of consummation of such transaction and,
with respect to any Deferral Period that is terminated on the next Interest Payment
Date following the date of consummation of such transaction, Section 2.1(g)(iv)
shall not apply.

     (vii) At any time during a Deferral Period prior to an APM Commencement Date,
the Company may elect to pay all or any portion of the Deferred Interest (including
Additional Interest thereon), by notifying the Trustee in writing at least ten days
prior to the proposed payment date of the amount of Deferred Interest proposed to be
paid and of the proposed payment date, provided that the Company makes such payment
of Deferred Interest pursuant to and in accordance with Section 2.1(h), provided
further that prior to making any such payment of Deferred Interest (including
Additional Interest thereon) the Company shall have deposited with the Trustee an
amount of money from any source equal to the amount of current interest that will be
accrued and payable on the next Interest Payment Date or shall make arrangements
satisfactory to the Trustee for such deposit prior to such Interest Payment Date;
such money when deposited to be held in trust for the benefit of the Persons
entitled to such payment of current interest as provided herein. For purposes of
determining the APM Commencement Date with respect to the applicable Deferral
Period, the date on which such written notice is given shall constitute the APM
Commencement Date.

     (i) Events of Default. (i) Solely for purposes of the ICONs, Section 5.1(1)
of the Indenture shall be replaced by the following:

- 11 -

 

     “(1) default in the payment of interest, including any Additional Interest in respect
thereof but not including cancelled interest, in full on any ICONs for a period of 30 days
after the conclusion of a period consisting of forty consecutive quarters commencing with
the quarter following the earliest quarter for which interest has not been paid in full.”

     (ii) Solely for purposes of the ICONs, Section 5.2 of the Indenture shall be replaced
by the following:

     “If an Event of Default specified in Section 5.1(1) with respect to Securities
of any series at the time Outstanding occurs and is continuing, then and in every
such case the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series shall have the right to declare the principal
amount of, and accrued interest (including any Additional Interest, but not
including any cancelled interest) on, all the ICONs to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by
Holders), provided that if the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding ICONs fail to declare the principal of, and
accrued interest (including any Additional Interest, but not including any cancelled
interest) on, all the Securities of that series to be immediately due and payable,
then the holders of at least 25% in aggregate liquidation amount of the
corresponding series of Capital Securities then outstanding shall have such right by
a notice in writing to the Company and the Trustee; and upon any such declaration
such principal amount (or specified portion thereof) of, and the accrued interest
(including any Additional Interest but not including any cancelled interest) on, all
the ICONs shall become immediately due and payable. Payment of principal and
interest (including any Additional Interest, but not including any cancelled
interest) on the ICONs shall remain subordinated to the extent provided in Article
XIII notwithstanding that such amount shall become immediately due and payable as
herein provided. If an Event of Default specified in Section 5.1(4), (5), (6) or (7)
with respect to the ICONs at the time Outstanding occurs, the principal amount of
all the ICONs shall automatically, and without any declaration or other action on
the part of the Trustee or any Holder, become immediately due and payable.”

     (iii) For the avoidance of doubt, and without prejudice to any other remedies
that may be available to the Trustee, the Holders of the ICONs or the holders of the
Capital Securities under the Indenture, no breach by the Company of any covenant or
obligation under the Indenture or the terms of the ICONs shall be an Event of
Default (including, without limitation, the failure to comply with the provisions of
Section 2.1(g) and Section 2.1(h) of this Supplemental Indenture), except those that
are specifically identified as an Event of Default under the Indenture.

     (j) Location of Payment. Payment of the principal of (and premium, if any)
and interest on the ICONs will be made at the corporate trust office of the Paying Agent, in
such coin or currency of the United States of America as at the time of payment is legal

- 12 -

 

tender for payment of public and private debts; provided, however, that at the option
of the Company payment of interest may be made (i) by check mailed to the address of the
Person entitled thereto as such address shall appear in the Securities Register or (ii) by
wire transfer in immediately available funds at such place and to such account as may be
designated by the Person entitled thereto as specified in the Securities Register. The
office where the ICONs may be presented or surrendered for payment and the office where the
ICONs may be surrendered for transfer or exchange and where notices and demands to or upon
the Company in respect of the ICONs and the Indenture may be served shall be the corporate
trust office of the Paying Agent.

     (k) Redemption. The ICONs are redeemable at the option of the Company,
subject to the terms and conditions of Article XI of the Indenture and subject to the
Company having received prior approval from the FRB if then required under applicable
capital guidelines or policies of the FRB, at 100% of their principal amount plus accrued
and unpaid interest (1) in whole or in part, on one or more occasions at any time on or
after September 15, 2011, or (2) in whole at any time if a Special Event has occurred and is
continuing and the Company cannot cure the Special Event by some reasonable action, in which
case the Company may redeem the ICONs within 90 days following the occurrence of the Special
Event.

     (l) Limitation on Claims in the Event of Bankruptcy, Insolvency or
Receivership. Each Holder, by such Holder’s acceptance of the ICONs, consents to and
agrees that if a Bankruptcy Event shall occur prior to the redemption or repayment of the
ICONs, such Holder shall have no claim for, and thus no right to receive, any Deferred
Interest (including any Additional Interest thereon) to the extent it exceeds an amount
equal to the Deferred Interest for the first eight quarters of the applicable Deferral
Period (including Additional Interest on such eight quarter’s worth of Deferred Interest) on
such Holder’s ICONs, and the obligation of the Company to pay any Deferred Interest
exceeding such amount shall be permanently cancelled.

     (m) Sinking Fund. The ICONs shall not be subject to any sinking fund or
analogous provisions.

     (n) Forms. The ICONs shall be substantially in the form of Annex A attached
hereto, with such modifications thereto as may be approved by the authorized officer
executing the same. The Trust Agreement shall be substantially in the form of Annex B
attached hereto, with such modifications thereto as may be approved by the authorized
officer executing the same. The Guarantee Agreement shall be substantially in the form of
Annex C attached hereto, with such modifications thereto as may be approved by the
authorized officer executing the same.

     (o) Subordination. The subordination provisions of Article XIII of the
Indenture shall apply; provided, however, that for the purposes of the ICONs (but not for
the purposes of any other Securities unless specifically set forth in the terms of such
Securities), the definition of “Senior and Subordinated Debt” in the Indenture is hereby
amended in its entirety to read as follows:

- 13 -

 

“‘Senior and Subordinated Debt’ means the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any petition
in bankruptcy or for reorganization relating to the Company whether or not such
claim for post-petition interest is allowed in such proceeding), on Debt of the
Company (including, for these purposes and without limitation, obligations
associated with commodity contracts, interest rate and foreign exchange contracts,
forward contracts related to mortgages and other derivative products), whether
incurred on or prior to the date of this Indenture or thereafter incurred, provided,
however, that Senior and Subordinated Debt shall not include Pari Passu Securities.”

     (p) Special Record Date for the Payment of Deferred Interest. The Company may
elect to make a payment of any Deferred Interest on a date that is not an Interest Payment
Date to the Persons in whose names the ICONs are registered at the close of business on a
Special Record Date for the payment of such Deferred Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee and the Paying Agent in writing of
the amount of Deferred Interest proposed to be paid on the ICONs and the date of the
proposed payment, and at the same time the Company shall deposit with the Paying Agent an
amount of money equal to the aggregate amount proposed to be paid in respect of such
Deferred Interest or shall make arrangements satisfactory to the Paying Agent 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 Deferred Interest as provided herein.
Thereupon, the Trustee shall fix a Special Record Date for the payment of such Deferred
Interest which shall be not more than 15 days and not 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 and the
Paying Agent of such Special Record Date and, in the name and at the expense of the Company,
the Paying Agent shall cause notice of the proposed payment of such Deferred Interest and
the Special Record Date therefor to be mailed, first-class, postage prepaid, to each Holder
of ICONs at the address of such Holder as it appears in the Securities Register not less
than ten days prior to such Special Record Date. Notice of the proposed payment of the
Deferred Interest and the Special Record Date therefor having been mailed as aforesaid, such
Deferred Interest shall be paid to the persons in whose names the ICONs are registered on
such Special Record Date.

- 14 -

 

ARTICLE III

MISCELLANEOUS

     Section 3.1. If any provision of this Supplemental Indenture limits, qualifies or conflicts
with the duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture Act of
1939 through operation of Section 318(c) thereof, such imposed duties shall control.

     Section 3.2. The Article headings herein are for convenience only and shall not effect the
construction hereof.

     Section 3.3. All covenants and agreements in this Supplemental Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.

     Section 3.4. In case any provision of this Supplemental Indenture 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 3.5. Nothing in this Supplemental Indenture is intended to or shall provide any
rights to any parties other than those expressly contemplated by this Supplemental Indenture.

     Section 3.6. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

     Section 3.7. The Trustee makes no representations as to the validity or sufficiency of this
Supplemental Indenture. The recitals and statements herein are deemed to be those of the Company
and not of the Trustee.

* * * *

- 15 -

 

     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 but one and the
same instrument.

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, and their respective corporate seals to be hereunto affixed and attested, all as of the
day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S. BANCORP
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Kenneth D. Nelson
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:
	 	Senior Vice President
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Laura F. Bednarski	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Its

	 	Assistant Secretary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	WILMINGTON TRUST COMPANY,
 as Trustee
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Denise M. Geran
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:
	 	Vice President
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Christopher J. Slaybaugh	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Its

	 	Assistant Secretary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S. BANK NATIONAL ASSOCIATION,
 as Securities Registrar and Paying Agent
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Beverly A. Freeney
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:
	 	Vice President

- 16 -

 

Annex
A
Form of ICONS

U.S. BANCORP

6.60% Income Capital Obligations NotesSM due 2066

No. •

$

CUSIP No. 903300 AA 9

     U.S. BANCORP, a corporation organized and existing under the laws of the State of Delaware
(hereinafter called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Wilmington Trust
Company, the Property Trustee of USB CAPITAL XI, or registered
assigns, the principal sum of          
dollars ($                   ) on September 15, 2066. The Company is authorized to direct payments to
U.S. Bank National Association, in its capacity as paying agent under the Trust Agreement (as
defined below), or any other paying agent appointed under the terms of the Trust Agreement. The
Company further promises to pay interest on said principal sum from September 15, 2006 or from the
most recent interest payment date (each such date, an “Interest Payment Date”) on which interest
has been paid or duly provided for, quarterly (subject to deferral as set forth herein) in arrears
on March 15, June 15, September 15 and December 15 of each year, commencing December 15, 2006, at
the rate of 6.60% per annum, until the principal hereof shall have become due and payable, and on
any overdue principal and (without duplication and to the extent that payment of such interest is
enforceable under applicable law) on any overdue installment of interest at the same rate per
annum, compounded quarterly. The amount of interest payable for any period will be computed on the
basis of a 360-day year comprised of twelve 30-day months. The amount of interest payable for any
period shorter than a full quarterly period will be computed on the basis of a 30-day month period
and, for periods of less than a month, the actual number of days elapsed per 30-day month. In the
event that any date on which interest is payable on this Security is not a Business Day, then a
payment of the interest payable on such date will be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of any such delay). A “Business
Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on which banking
institutions in The City of New York are authorized or required by law or executive order to remain
closed or (iii) a day on which the Corporate Trust Office of the Property Trustee or the principal
offices of the Property Trustee under the Trust Agreement hereinafter referred to for USB CAPITAL
XI, is closed for business. 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 Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest installment, which shall be (i) the
Business Day next preceding such Interest Payment Date if this Security is issued in the form of a
Global Security, or (ii) the fifteenth day (whether or not a Business Day) preceding such Interest
Payment Date if this Security is not issued in the form of a Global Security. Any such interest
installment not so punctually paid or duly provided for shall forthwith cease to be payable to the

 

			
	SM	 	Income Capital Obligation Notes is a
service mark of Merrill Lynch & Co., Inc.

 

 

Holder on such Regular Record Date and may either be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of the Securities of this series not fewer than ten days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more full provided in said Indenture.

     The Company shall have the right, at any time and from time to time prior to the Stated
Maturity of this Security, to defer the payment of interest thereon for one or more Deferral
Periods consisting of no more than 20 consecutive quarters without becoming subject to the
obligations to issue Eligible Equity and pay Deferred Interest pursuant to Section 2.1(h) of the
Fifth Supplemental Indenture. The Company shall also have the right, at any time and from time to
time prior to the Stated Maturity of this Security, to defer payment of interest thereon for one or
more Deferral Periods consisting of no more than 40 consecutive quarters without giving rise to an
Event of Default. The Company may elect to so defer payment of interest by delivering to the
Trustee written notice of such election at least ten and not more than 60 Business Days prior to
the applicable Interest Payment Date. Notwithstanding the foregoing, no Deferral Period shall
extend beyond the Stated Maturity of this Security.

     During any Deferral Period, the Company shall not, and shall not permit any Subsidiary of the
Company to, (1) 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 (which includes
common and preferred stock), (2) make any payment of principal of or interest or premium, if any,
on or repay, repurchase or redeem any debt securities of the Company (including the Company’s 6.35%
Income Capital Obligation Notes underlying the trust preferred securities issued by USB Capital
VIII, the Company’s Junior Subordinated Notes underlying the 6.189% Fixed-to-Floating Rate Normal
Income Trust Securities issued by USB Capital IX, the Company’s 6.50% Income Capital Obligation
Notes underlying the trust preferred securities issued by USB Capital X) that rank pari passu with
or junior in interest to the Securities of this Series or (3) make any guarantee payments with
respect to any guarantee by the Company of the debt securities of any Subsidiary of the Company if
such guarantee ranks pari passu with or junior in interest to the Securities of this series, other
than in the case of each of clauses (1), (2) and (3): (A) any dividends or distributions in
additional shares of the Company’s capital stock (which includes common and preferred stock), (B)
any payments under the Guarantee with respect to the Capital Securities and common securities of
the Trust, (C) any declaration or payment of a dividend in connection with the implementation of a
stockholders’ rights plan, or any issuance of stock under any such plan in the future or the
redemption or repurchase of any such rights pursuant thereto, and (D) any purchases of Common Stock
related to the issuance of Common Stock or rights under any of the Company’s benefits plans for its
directors, officers or employees.

     Payment of principal of (and premium, if any) and interest on this Security will be made at
the office or agency of the Company maintained for that purpose in the United States, in such coin
or currency of the United States of America as at the time of payment is legal tender for

A-2

 

payment of public and private debts; provided, however, that at the option of the Company payment
of interest may be made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the Securities Register or (ii) by wire transfer in immediately available
funds at such place and to such account as may be designated in writing at least 15 days before the
relevant Interest Payment Date by the Person entitled thereto as specified in the Securities
Register.

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

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

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

A-3

 

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

	 	 	 	 	 
	 	U.S. Bancorp 

 	 
	 	By:  	 	 
	[SEAL] 
	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

                                                            

           Assistant Secretary

Dated: •, 2006

A-4

 

REVERSE OF SECURITY

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under a Junior Subordinated
Indenture, dated as of April 28, 2005, as supplemented by the First Supplemental Indenture, dated
as of August 3, 2005, the Second Supplemental Indenture, dated as of December 29, 2005, the Third
Supplemental Indenture, dated as of March 17, 2006, and the Fourth Supplemental Indenture, dated as
of April 12, 2006 and the Fifth Supplemental Indenture, dated as of August 30, 2006 (herein
together called the “Indenture”), between the Company and Wilmington Trust Company (as successor to
Delaware Trust Company, National Association), as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Trustee, the Company and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof, limited in aggregate
principal amount of $806,000,000, issuable on one or more occasions.

     All terms used in this Security that are defined in the Indenture or in the Amended and
Restated Trust Agreement, dated as of August 30, 2006 (the “Trust Agreement”), for USB CAPITAL XI,
among U.S. Bancorp, as Sponsor, and the Trustees named therein, shall have the meanings assigned to
them in the Indenture or the Trust Agreement, as the case may be.

     The Company may at any time, at its option, on or after September 15, 2011, and subject to the
terms and conditions of Article XI of the Indenture and Section 2.1(k) of the Fifth Supplemental
Indenture, and subject to prior approval by the Board of Governors of the Federal Reserve System if
then required, redeem this Security in whole at any time or in part from time to time, without
premium or penalty, at a redemption price equal to 100% of the principal amount thereof plus
accrued and unpaid interest including Additional Interest, if any, to the Redemption Date.

     With regard to each Interest Payment Date during any APM Period (defined in the Fifth
Supplemental Indenture) subsequent to the APM Commencement Date (defined in the Fifth Supplemental
Indenture), except for any Interest Payment Date for which the Company has delivered a timely MDE
Certification (defined in the Fifth Supplemental Indenture), subject to certain exceptions, the
Company shall issue and sell on or immediately following an APM Commencement Date, Eligible Equity
(defined in the Fifth Supplemental Indenture) until the Company has raised an amount of Eligible
Equity Proceeds (defined in the Fifth Supplemental Indenture) at least equal to the aggregate
amount of Deferred Interest (including Additional Interest thereon) on the Securities of this
series that will be accrued and unpaid as of the next Interest Payment Date, and the Company shall
apply such Eligible Equity Proceeds to pay such Deferred Interest on or before the next Interest
Payment Date. Subject to certain exceptions, during any APM Period, the Company shall not to pay
Deferred Interest (including Additional Interest thereon) from any source other than Eligible
Equity Proceeds. If, due to a Market Disruption Event, the Company is able to raise some but not
all, Eligible Equity Proceeds in

A-5

 

respect of an Interest Payment Date, the Company will apply any available Eligible Equity
Proceeds to pay Deferred Interest on or before the such Interest Payment Date; provided, however,
that if the Company has outstanding securities in addition to the Securities of this series under
which the Company is obligated to sell qualifying warrants or shares of common stock and/or
perpetual non-cumulative preferred stock and apply the net proceeds to the payment of deferred
interest, then on any date and for any period the amount of net proceeds received by the Company
from such sales and available for the payment of Deferred Interest shall be applied to the
Securities of this series and those other securities on a pro rata basis, or on such other basis as
the FRB may approve.

     Upon the occurrence and during the continuation of a Tax Event, Investment Company Event or a
Regulatory Capital Event in respect of a Trust, the Company may, at its option, at any time within
90 days of the occurrence of such Tax Event, Investment Company Event or Regulatory Capital Event
redeem this Security, in whole but not in part, subject to the provisions of Article XI of the
Indenture, at a redemption price equal to 100% of the principal amount thereof plus accrued and
unpaid interest, including Additional Interest, if any, to the Redemption Date.

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

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

     As provided in and subject to the provisions of the Indenture, if an Event of Default with
respect to the Securities of this series at the time Outstanding occurs and is continuing, then and
in every such case the Trustee or the Holders of not less that 25% in principal amount of the
Outstanding Securities of this series may declare the principal amount of all the Securities of
this series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by the Holders), provided that, in the case of the Securities of this series
issued to a Trust, if upon an Event of Default under the Fifth Supplemental Indenture, the Trustee
or the Holders of not less than 25% in principal amount of the Outstanding Securities of this
series fails to declare the principal of all the Securities of this series to be immediately due
and payable, the holders of at least 25% in aggregate Liquidation Amount of the Capital Securities
then outstanding shall have such right by a notice in writing to the Company and the Trustee; and

A-6

 

upon any such declaration the principal amount of and the accrued interest (including Additional
Interest) on all the Securities of this series shall become immediately due and payable, provided
that the payment of principal and interest (including Additional Interest) on such Securities shall
remain subordinated to the extent provided in Article XIII of the Indenture and Section 2.1(o) of
the Fifth Supplemental Indenture.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, places and rate,
and in the coin or currency, herein prescribed (subject to the deferral rights of the Company
described in the Indenture).

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Securities Register, upon surrender of this
Security for registration of transfer at the office or agency of the Company maintained under
Section 10.2 of the Indenture duly endorsed by, or accompanied by written instrument of transfer in
form satisfactory to the Company and the Securities Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Securities of this
series, of authorized denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees. No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

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

     The Securities of this series are issuable only in registered form without coupons in
denominations of $25 and in any multiple thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Securities of this series are exchangeable for like
aggregate principal amount of Securities of such series of a different authorized denomination, as
requested by the Holder surrendering the same.

     The Company and, by its acceptance of this Security or a beneficial interest therein, the
Holder of, and any Person that acquires a beneficial interest in, this Security agree to treat the
Trust as a grantor trust and beneficial owners of interests in the Trust as owning an undivided
beneficial interest in the Security and to treat the Security as indebtedness for all United States
federal, state and local tax purposes.

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

A-7

 

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

	 	 	 	 	 
	 	Wilmington Trust Company, 

   as Trustee

 	 
	 	By:  	 	 
	 	 	          Authorized Signatory 	 
	 	 	 	 
	 

Dated: •, 2006

A-8

 

Annex B

Trust Agreement

B-1

 

Annex C

Guarantee Agreement

C-1

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