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EXHIBIT 10.10  

EXECUTION COPY  

 
 

REVISED
  
  
  DEVELOPMENT AGREEMENT
  
  
  AMONG
  
  
  CITY OF DETROIT
  
  
  THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF DETROIT
  
  
  AND
  
  
  MGM
GRAND DETROIT, L.L.C.    
  

      

      

      

TABLE OF CONTENTS  

	Preliminary Statement	 	1
	

1.	

General Provisions	
 	

1
	 	1.1 Findings	 	1
	 	1.2 Developer's Rights	 	1
	 	1.3 Location of the Casino Complex	 	2
	 	1.4 Closing	 	2
	

2.	

Design and Construction of Casino Complex	
 	

3
	 	2.1 No Responsibility for City	 	3
	 	2.2 Casino Complex	 	3
	 	2.3 Permits	 	4
	 	2.4 Quality of Work	 	4
	 	2.5 Construction and Scheduling	 	4
	 	2.6 Design and approval	 	5
	 	2.7 Approval by City	 	6
	

3.	

Other Obligations of Developer	
 	

6
	 	3.1 Casino Complex Operations	 	6
	 	3.2 Hours of Operation	 	6
	 	3.3 Radius Restriction	 	6
	 	3.4 Payment of Development Process Costs	 	7
	 	3.5 Social Commitments	 	8
	 	3.6 Default Rate	 	10
	 	3.7 Administration of this Agreement	 	10
	 	3.8 Memorandum of Agreement	 	11
	 	3.9 Financial Statements	 	11
	 	3.10 Negative Covenants	 	11
	 	3.11 Notification	 	13
	 	3.12 Veracity of Statements	 	13
	 	3.13 Use of Casino Complex	 	13
	 	3.14 Financing	 	13
	 	3.15 Riverfront Site Closeout	 	14
	 	3.16 Financial Commitments By Developer	 	15
	 	3.17 Guaranty and Keep Well Agreement	 	16
	

4.	

Representations and Warranties	
 	

16
	 	4.1 Representations and Warranties of Developer	 	16
	 	4.2 Representations and Warranties of the City	 	16
	 	4.3 Representations and Warranties of the EDC	 	17
	

5.	

Other Obligations of City	
 	

17
	 	5.1 Re-Selection	 	17
	

6.	

Default	
 	

19
	 	6.1 Events of Default	 	19
	 	6.2 Remedies	 	20
	 	6.3 Termination	 	22
	 	6.4 Liquidated Damages	 	22
	 	6.5 Limitation of Remedies	 	22
	

7.	

City's Right to Perform Developer's Covenants	
 	

23
	

8.	

Transfers	
 	

24
	 	8.1 Transfer of Development Agreement	 	24
	 	8.2 Transfer of Ownership Interest	 	24
	

9.	

Insurance	
 	

25
	 	9.1 Maintain Insurance	 	25
	 	9.2 Form of Insurance and Insurers	 	26
	 	9.3 Other Policies	 	26
	 	9.4 Insurance Notice	 	26
	 	9.5 Keep in Good Standing	 	26
	 	9.6 Blanket Policies	 	26
	

10.	

Environmental	
 	

27

	 	10.1 Representations and Warranties	 	27
	 	10.2 Indemnity	 	27
	 	10.3 Survival	 	27
	

11.	

Damage and Destruction	
 	

27
	 	11.1 Damage or Destruction	 	27
	 	11.2 Use of Insurance Proceeds	 	27
	 	11.3 No Termination	 	29
	 	11.4 Condemnation	 	29
	

12.	

Indemnification	
 	

30
	 	12.1 Indemnification by Developer	 	30
	

13.	

Force Majeure	
 	

31
	 	13.1 Definition of Force Majeure	 	31
	 	13.2 Notice.	 	32
	 	13.3 Excuse of Performance	 	32
	

14.	

Miscellaneous	
 	

32
	 	14.1 Notices	 	32
	 	14.2 Non-Action or Failure to Observe Provisions of this Agreement	 	33
	 	14.3 Applicable Law and Construction	 	33
	 	14.4 Submission to Jurisdiction	 	33
	 	14.5 Complete Agreement	 	34
	 	14.6 Holidays	 	34
	 	14.7 Exhibits	 	34
	 	14.8 No Brokers	 	34
	 	14.9 No Joint Venture	 	34
	 	14.10 Governmental Authorities	 	34
	 	14.11 Technical Amendments	 	34
	 	14.12 Unlawful Provisions Deemed Stricken	 	35
	 	14.13 No Liability for Approvals and Inspections	 	35
	 	14.14 Time of the Essence	 	35
	 	14.15 Captions	 	35
	 	14.16 Arbitration	 	35
	 	14.17 Sunset Provision	 	37
	 	14.18 Compliance	 	37
	 	14.19 Table of contents	 	37
	 	14.20 Number and Gender	 	38
	 	14.21 Third Party Beneficiary	 	38
	 	14.22 Cost of Investigation	 	38
	 	14.23 Attorneys' Fees	 	38
	 	14.24 Further Assurances	 	38
	 	14.25 Estoppel Certificates	 	38
	 	14.26 Consent For Certain Amendments	 	38
	 	14.27 Counterparts	 	39
	

15.	

Definitions	
 	

39

   REVISED

DEVELOPMENT AGREEMENT  

        THIS REVISED DEVELOPMENT AGREEMENT ("Agreement") supersedes an agreement as originally executed as of the
12th day of March,1998, (the "Original Agreement"), as amended and restated as of the 9th day of April, 1998 as amended by the First Amendment dated June 25, 1998,
Second Amendment dated December 1999, Third Amendment dated November 30, 2000, Fourth Amendment dated November 2001, Fifth Amendment dated March    , 2002, Sixth
Amendment dated April    , 2002, Seventh Amendment dated June 12, 2002 and Eighth Amendment dated July 31, 2002 (the "Amended
Agreement"), by and among the City of Detroit, a municipal corporation ("City"), The Economic Development Corporation of the
City of Detroit, a Michigan public body corporate ("EDC"), having its principal place of business at 211 West Fort, Suite 900, Detroit, Michigan 48226
and MGM Grand Detroit, L.L.C., a Delaware limited liability company ("Developer"), having its principal place of business at 1300 John C. Lodge,
Detroit, Michigan 48226. 

Preliminary Statement  

        The City selected Developer to develop, construct, own and operate a Casino Complex pursuant to a certain Request for
Proposals/Qualifications. The City, the EDC and Developer are currently the parties to the Amended Agreement, which sets forth their mutual rights and obligations with respect thereto,
and the Conveyance Agreement, which provides for the purchase by Developer from the EDC of the Riverfront Site, upon which the Casino Complex was planned to be constructed. 

        The
parties have agreed that: (i) Developer will develop, construct and operate the Casino Complex on a site located within the Boundaries and will not acquire the Riverfront
Site; (ii) the Conveyance Agreement will be terminated; and (iii) the Amended Agreement will be revised to read as set forth herein. This
Agreement constitutes a revision to the Amended Agreement and a continuation of the relationship among the parties as established pursuant to the Amended Agreement. 

        Accordingly,
the parties hereby agree that the Amended Agreement is revised to read as set forth in this Agreement. To the extent that the Amended Agreement distinguished between a
"Temporary Casino" and a "permanent" Casino Complex, such distinction is eliminated by this Agreement and unless the context otherwise requires, the Casino Complex owned and operated by Developer as
of the
date this Agreement is executed shall be deemed Developer's "permanent" Casino Complex. Certain terms used in this Agreement are defined in  Section 15. 

1. General Provisions  

 1.1 Findings  

        The City hereby reaffirms its findings that the development, construction and operation of the Casino Complex will be in the best interest of the City and will
contribute to the objectives of providing and preserving gainful employment opportunities for citizens of the City, contributing to the economic growth of the City, attracting commercial and
industrial enterprises to the City and promoting the expansion of existing enterprises, combating community deterioration, promoting tourism, improving the aesthetic quality of the City and providing
the City with additional tax revenue. The City further finds that entering into this Agreement is in the best interest of the City and accomplishes the purposes of Act 338, Michigan Public Acts of
1974, as amended. 

 1.2 Developer's Rights  

        So long as this Agreement is in effect, but subject to the Act and all other Governmental Requirements, Developer shall have the right to develop, construct, own
and operate the Casino Complex in accordance with this Agreement. 

1

 

 1.3 Location of the Casino Complex  

        (a)  Upon
execution of this Agreement, Developer shall commence a search for a Qualified Casino Complex Site upon which to construct its Casino Complex including the
Components to be constructed pursuant to Section 2.2(c), which may, if Developer elects, include the site on which the MGM Grand
Detroit Casino is located as of the date of execution of this Agreement (sometimes herein referred to as "currently"). Developer shall provide City with regular and systematic updates with respect to
any material developments in connection with Developer's search for a Qualified Casino Complex Site. Developer may move the Casino Complex to an alternate Qualified Casino Complex Site at any time,
whether before or after construction of all or any part of the Casino Complex, without the consent of the other Detroit Casino Developers. 

        (b)  The
City shall cooperate with Developer in locating a site for Developer's Casino Complex, but shall not be required or have any responsibility to locate, transfer,
sell, dispose of, dedicate, vacate, purchase, condemn or otherwise obtain any land for the Casino Complex. 

        (c)  The
Boundaries shall not be changed without the prior written consent of the City and all Detroit Casino Developers. 

        (d)  Until
such time as the Casino Complex is open to the public for its intended use, Developer may continue to operate the MGM Grand Detroit Casino consistent with the
manner in which it was operated under the Initial Development Agreement and subject to the terms of this Agreement. 

 1.4 Closing  

        The closing of the transactions contemplated in this Agreement (the "Closing") shall take place (i) at the
offices of the City's Law Department, 660 Woodward Avenue, Detroit, Michigan 48226-3535, at 10:00 A.M., local time, on the tenth (10th) Business Day after approval of
this Agreement by City Council, or (ii) at such other time and place as the parties mutually agree upon in writing. 

        (a)  At
the Closing, Developer shall deliver to City and EDC, as applicable, the following: 

	(1)
	The
Guaranty and Keep Well Agreement, executed by Parent Company;

	(2)
	An
opinion of counsel from Developer to the City and EDC in a form reasonably satisfactory to the City and EDC;

	(3)
	The
Closing Certificate;

	(4)
	The
Memorandum of Agreement;

	(5)
	Developer's
one-third (1/3) share of the Development Process Costs then incurred and/or due;

	(6)
	The
executed reaffirmation of Parent Company, any Casino Manager and each Restricted Party requested by City, to abide by the Radius Restriction;

	(7)
	Conveyance
of all of Developer's interest in Jefferson Holdings, LLC and all of its right, title and interest, if any, in the Railroad Property to the extent held outside of its
interest in Jefferson Holdings, LLC, provided, however, that at the City's request, the City may delay such conveyance for a period not exceeding two
(2) years. In the event the City elects to so delay such conveyance, Developer shall make such conveyance upon five (5) days written notice to Developer;

	(8)
	A
form of release attached hereto as Exhibit 3.15(e)(1), duly executed by Developer;

	(9)
	Board
resolutions of Developer, properly certified, approving this Agreement and the transactions contemplated hereby; and 

2

 

	(10)
	The
Indemnity Agreement duly executed by Developer. 

        (b)  At
the Closing, City and EDC shall deliver to Developer a form of release attached hereto as Exhibit 3.15(e)(2),
duly executed by City and EDC. 

 1.5 Authorization  

        The effectiveness of this Agreement is subject to the approval of the Board of Directors and/or Executive Committee of Parent Company and the Board of Directors
of Developer. Developer shall notify the City of such approvals promptly on their being obtained. 

2. Design and Construction of Casino Complex  

 2.1 No Responsibility for City  

        The City shall have no responsibility for any error or omission in the Design Documents, or for failure of the Design Documents, or a part thereof, to comply with
Governmental Requirements, or for Design Documents that result in or cause a defective design or construction. 

 2.2 Casino Complex  

        (a)  Developer
shall (i) construct the Casino Complex either as new construction or as a combination of new construction and existing structures or new construction
and modifying existing structures, (ii) diligently operate and maintain the Casino Complex and all other support facilities in a manner consistent with First Class Casino Complex Standards, the
Act and all other Governmental Requirements and in compliance with this Agreement, and (iii) as soon as reasonably possible consistent with its typical development process, of this Agreement,
provide to the City a document (including pictures, diagrams or illustrations) which illustrates Developer's concept for the Casino Complex and demonstrates the First Class Casino Complex Standards. 

        (b)  The
Gaming Area shall not be smaller than the Gaming Area of the MGM Grand Detroit Casino or larger than 100,000 square feet. Due to the imprecise ability to measure
Gaming Area, City and EDC agree that if in good faith Developer measures its gaming floor area in a manner that differs from City's measurement of gaming floor area by ten percent (10%) or less, such
variance shall not be considered a violation of this Section 2.2. Additionally, such variance shall not be deemed to be an amendment to or
revision of this Agreement requiring the consent described in Section 14.26. 

        (c)  Developer
shall develop and construct the following Components, as more particularly described in Section G of  Exhibit A, simultaneously with the Casino:

	(1)
	hotel
with a minimum of four hundred (400) rooms (the "Initial Hotel Component");

	(2)
	catering
and entertainment facilities;

	(3)
	convention
area/meeting rooms;

	(4)
	restaurants,
lounges and bars;

	(5)
	adequate
retail space; and

	(6)
	adequate
parking. 

        Developer
shall expand the Initial Hotel Component by constructing Additional Hotel Rooms, provided, however, that Developer's obligation
to construct the Additional Hotel Rooms shall be subject to the occurrence of all of the following: (i) market conditions indicate that the Additional Hotel Rooms can be operated at a profit
which is not less than that prevailing at the other hotel rooms operated by Affiliates of Developer; (ii) Developer's ability to acquire, if necessary, additional land adjacent to the Casino
Complex at a reasonable cost on which to construct the Additional Hotel 

3

 

Rooms; and (iii) availability of financing to Developer, upon conventional terms reasonably satisfactory to Developer, necessary to construct the Additional Hotel Rooms. If Developer does not
commence construction of the Additional Hotel Rooms on or before five (5) years from the date of the opening of the Initial Hotel Component to the public for their intended use, then within
thirty (30) days thereafter Developer shall provide the City with a written account of the reasons for not having commenced construction of the Additional Hotel Rooms. If the City disagrees
with Developer's written account, the dispute shall be settled through arbitration pursuant to Section 14.16. If the City prevails in such
arbitration, the Developer shall be obligated to promptly commence and complete the Additional Hotel Rooms. In its site plan to be delivered to the City pursuant to  Section 2.6, Developer shall
delineate the approximate location at which the Additional Hotel Rooms will be constructed. 

        (d)  Developer
may develop, construct and operate Components of the Casino Complex through leasing, joint venture or other contractual arrangements with third parties,
pursuant to which the ownership and operation of selected Components is vested in affiliated or independent entities; provided, however, that the
arrangements comply with all applicable Governmental Requirements and; provided, further, that in all such cases Developer obtains contractual
commitments from all such third parties to comply with the applicable provisions of this Agreement. Developer shall be liable for any non-compliance by such third parties as if such
Component were owned and operated by Developer. 

 2.3 Permits  

        As soon as practicable after purchasing or leasing a Qualified Casino Complex Site, Developer shall diligently prepare and file all applications for, and pursue
and use diligent efforts to obtain, the Permits. At Developer's request, the City will provide to Developer a City representative to (x) cooperate with and assist Developer in securing the
Permits and (y) use commercially reasonable efforts to expedite the issuance of the Permits; provided, however, that nothing in this Agreement
shall adversely affect, limit, restrict or reduce the right of the City or the County, as Governmental Authorities, to exercise their respective governmental powers and authority and to act in
regulatory matters in accordance with applicable Governmental Requirements. If Developer requests that the City provide a City representative, Developer shall pay City for all documented fees and
reasonable expenses of City for the services of the City representative and the City representative's staff, to the extent the City representative and staff are providing services to the Casino
Complex. 

 2.4 Quality of Work  

        All Work shall be performed in a good and workmanlike manner and in accordance with good construction practices. All materials used in the construction of the
Casino Complex shall be of first class quality. The quality of the Finish Work shall meet or exceed First Class Casino Complex Standards. 

 2.5 Construction and Scheduling  

        (a)  Developer
will comply with all applicable Governmental Requirements in the development, construction and financing of the Casino Complex and will achieve Completion in
accordance with the following schedule: 

	i.
	Promptly
upon identifying a permanent casino site which is acceptable to Developer. Developer will seek the requisite approvals from the City and City Council, including zoning street
vacations, infrastructure commitments (onsite and offsite), and other actions by the City and/or City Council necessary for development of the site. Upon obtaining such approvals and favorable actions
(the "Start Date"), Developer will diligently proceed with the design development process, including preparation of design and construction documents,
permit applications, and similar matters. 

4

 

Developer anticipates that the design development process will take not more than eight (8) months from the Start Date, subject to Force Majeure. Developer will use its commercially reasonable
efforts to accelerate that process. 

	ii.
	From
the date the City and/or City Council, as appropriate, issues requisite building and other permits necessary for construction of the permanent hotel/casino complex, Developer
commits to complete such hotel/casino complex within thirty-two (32) months, subject to Force Majeure. Developer will use commercially reasonable efforts to accelerate that
schedule.

	iii.
	The
schedules and commitments referred to in subparagraphs (i) and (ii) above will be conditioned upon the City and its departments, agencies and instrumentalities
cooperating with Developer to facilitate the planning, permitting and construction process.

	iv.
	Developer
will achieve Final Completion before the Final Completion Date. 

        (b)  Upon
Completion, the Casino Complex will conform to First Class Casino Complex Standards and to all applicable Governmental Requirements. 

        (c)  Notwithstanding
anything to the contrary contained in this Section 2.5 Developer's obligation to achieve
Completion by the Completion Date and Final Completion by the Final Completion Date is subject to: (i) Force Majeure and (ii) there being be no order or ruling from a court of competent
jurisdiction which would deprive Developer of a material portion of the economic benefits anticipated from its Casino Complex. In the event of a dispute over the applicability of
clause (i)-(ii) above, such dispute shall be resolved by arbitration in accordance with Section 14.16. 

        (d)  City
will expeditiously and appropriately process all requests and applications made by or on behalf of Developer for SD-5 zoning and site plan approvals,
construction and related permits and inspections, street and alley vacations, grants of air rights, liquor and bar licenses, certificates of occupancy and other such construction related matters, in
order to assist Developer in its efforts to achieve Completion and Final Completion as set forth in this Section 2.5. 

 2.6 Design and approval  

        As soon as reasonably possible consistent with its typical development process, Developer will submit the following to the City for its review and comment (but
not its approval): 

	(i)
	A
site plan;

	(ii)
	A
conceptual design plan establishing the general scope, conceptual design and scale relationships among the various Components, and the range of square footages of the various
Components;

	(iii)
	Elevations;

	(iv)
	An
approximate timeline for Completion, including estimated key milestone dates;

	(v)
	Any
known contingencies which are likely to affect either the scope of the project or Developer's ability to meet key milestone dates;

	(vi)
	A
specific list of any concessions needed from the City, such as street vacations and air rights; and

	(vii)
	Preliminary
cost estimates for construction. 

5

 

 2.7 Approval by City  

        Wherever an approval is required of City pursuant to the terms of this Agreement, the approval or disapproval shall be given in writing, which in the case of
disapproval, shall set forth the reasons of disapproval. Whenever in this Agreement any consent or approval of the City is required, such approval or consent shall be given or withheld by the Mayor,
any City official designated by the Mayor or appropriate City department unless otherwise indicated. Prior to the Closing and from time to time thereafter, City shall designate in writing to Developer
those individuals who have authority to grant any approvals or consents hereunder on behalf of City. Developer shall be entitled to rely on any writing signed by such designees. 

 2.8 Efforts to Expedite  

        Developer will use commercially reasonable efforts, subject to receiving full cooperation from the City, to achieve Completion not later than the Completion Date
(which is December 31, 2005, subject to extension pursuant to Section 15(u)). 

3. Other Obligations of Developer  

 3.1 Casino Complex Operations  

        Developer agrees to diligently operate and maintain the Casino Complex and all other support facilities directly, or through Casino Component Manager/Operators or
Component manager(s), in a manner consistent with First Class Casino Complex Standards and in compliance with this Agreement. 

 3.2 Hours of Operation  

        Developer covenants that, at all times, it will: (i) continuously operate and keep open the Casino for Casino Gaming Operations for the maximum hours
permitted under the Governmental Requirements; (ii) continuously operate and keep open for business to the general public twenty-four (24) hours each day, every day of the
calendar year, the hotel Component and the parking Component; and (iii) operate and keep open for business to the general public all Components (other than hotel Component, parking Component
and Components where Casino Gaming Operations are conducted) in accordance with commercially reasonable hours of operation. Notwithstanding the foregoing, Developer shall have the right from time to
time in the ordinary course of business and without advance notice to City, to close portions of any Component (x) for such reasonable periods of time as may be required for repairs,
alterations, maintenance, remodeling, or for any reconstruction required because of casualty, condemnation, governmental order or Force Majeure or (y) during non-peak hours or as a
result of seasonal demands in accordance with usual and customary casino operating practices. 

 3.3 Radius Restriction  

        (a)  For
purposes of this Section 3.3, "Restricted Party" means any
Person who directly or indirectly owns any interest in Developer or in any Casino Manager which is an Affiliate of Parent Company other than any Person who is a Restricted Party due solely to that
Person's ownership of (x) a direct or indirect interest in a Publicly Traded Corporation or (y) five percent (5%) or less direct or indirect interest in Developer. Commencing on
March 12, 1998, and continuing for the shorter of (x) such period as casino gaming activities are permitted in the City; or (y) two (2) years after the Termination Date,
neither Developer, Parent Company, any Casino Manager which is an Affiliate of Parent Company, Developer or any Restricted Party, nor any Restricted Party, shall directly or indirectly:
(i) manage, operate or become financially interested in any casino within the Radius other than the Casino Complex; (ii) make application for any franchise, permit or license to manage
or operate any casino within the Radius other than the Casino Complex; or (iii) respond positively to any request for proposal to develop, manage, operate or become financially interested in
any casino within the Radius 

6

 

(the "Radius Restriction") other than the Casino Complex, provided that with respect to any Casino Manager which is an Affiliate of Parent Company,
Developer or any Restricted Party, the period set forth in clause (y) shall be two (2) years after the termination of its Casino Component Management Agreement. Developer shall cause
Parent Company, any Casino Manager which is an Affiliate of Parent Company, Developer or any Restricted Party and each Restricted Party requested by City, to execute and deliver to City at closing an
agreement to abide by the Radius Restriction. The Radius Restriction shall survive the termination of this Agreement. 

        (b)  If
Parent Company, Developer or any Restricted Party acquires or is acquired by a Person such that, but for the provisions of this  Section 3.3, either Parent Company, Developer or any Restricted Party
or the acquiring Person would be in violation of the Radius Restriction as
of the date of acquisition, then such party shall have five (5) years in which to comply with the Radius Restriction. In addition, if the laws of the State are amended to allow more than three
(3) casinos within the City or the radius, then neither Developer nor any Restricted Party shall be deemed to be in violation of the Radius Restriction solely by reason of an ownership or other
interest in any such additional casinos. 

        (c)  Notwithstanding
anything in Section 3.3(a) to the contrary, Developer shall have the right to (i) make
loans to the other Detroit Casino Developers provided that (x) such loans are not secured, in whole or in part, by the Casino Complex, any Component or any direct or indirect ownership interest
in Developer (other than by a Permitted Interest, as herein defined) and (y) Developer, as the result of such loans, is given no ability to control or manage the affairs of the borrower; and
(ii) purchase such ownership interest in any other Detroit Casino Complex as and to the extent permitted under the Act (a "Permitted Interest"). 

        (d)  It
is the desire of the parties that the provisions of this Section 3.3 be enforced to the fullest extent
permissible under the laws and public policies in each jurisdiction in which enforcement might be sought. Accordingly, if any particular portion of this  Section 3.3 shall ever be adjudicated as
invalid or unenforceable, or if the application thereof to any party or circumstance shall be
adjudicated to be prohibited by or invalidated by such laws or public policies, such section or sections shall be (i) deemed amended to delete therefrom such portions so adjudicated or
(ii) modified as determined appropriate by such a court, such deletions or modifications to apply only with respect to the operation of such section or sections in the particular jurisdictions
so adjudicating on the parties and under the circumstances as to which so adjudicated. 

        (e)  The
obligations of Developer under this Section 3.3 shall lapse and be of no further force or effect ten
(10) years after the Closing. 

 3.4 Payment of Development Process Costs  

        (a)  Developer
previously has made payments to the City to satisfy certain Development Process Costs under the Amended Agreement. Developer shall continue to pay
one-third (1/3) of the Development Process Costs pursuant to this Agreement in accordance with the procedures set forth below. 

        (b)  City
and/or EDC shall invoice Developer from time to time, but no more frequently than monthly, for: (i) one-third (1/3) of the
Development Process Costs and (ii) to the extent City and/or EDC in their respective reasonable discretion determines that any Development Process Cost is directly attributable to a particular
Detroit Casino Complex, the entire amount of such Development Process Cost, in each case incurred prior to the Completion Date. After the Completion Date, Developer shall be responsible only for such
Development Costs as City and/or EDC reasonably determine were incurred after the Completion Date in connection with the Casino Complex (other than its share of any previously incurred but unpaid
Development Process Costs). Developer shall pay such invoiced Development Process Costs within fifteen (15) Business Days from the date of the invoice. City and EDC, respectively, shall submit
to Developer a summary of the charges set forth in such invoice 

7

 

containing such detail as City and EDC, respectively, reasonably believes is necessary to inform Developer of the nature of the costs and expenses and the basis for the allocation amongst Developer
and the other Detroit Casino Developers. At Developer's request, City and EDC shall consult with Developer on the necessity for and allocation of such charges during the five (5) Business Days
period immediately subsequent to Developer's receipt of such summary. 

 3.5 Social Commitments  

        (a)  As
set forth on Exhibit A, Section E, Developer agrees to use commercially reasonable efforts to acquire
all or some of its financing from a Detroit-Based Business, a Detroit Resident Business and/or a Small Business Concern and/or to utilize Detroit-based and/or Minority-owned financial institutions in
serving Developer's financial needs. 

        (b)  Developer
agrees, to the extent permitted by applicable law, to: 

	(1)
	perform
and comply in all material respects with the commitments, promises and/or undertakings set forth on Exhibit A, Sections H, K, P, and
Q;

	(2)
	use
good faith efforts to perform and comply in all material respects with the commitments, promises and undertakings set forth in Exhibit A, Sections
I, J, T, V, W, X, AA and BB;

	(3)
	use
reasonable best efforts to perform and comply in all material respects with the commitments, promises and/or undertakings set forth on Exhibit A,
Sections N, O, S, and CC, provided that Developer's obligations with respect to its commitments, promises and undertakings set forth on  Exhibit A, Section O are also
subject to Developer's obligations set forth in this Section 3.5(d),
(g) and (h); and

	(4)
	use
commercially reasonable efforts to perform and comply in all material respects with the commitments, promises and undertakings set forth on  Exhibit A, Sections L and U. 

        (c)  Developer
agrees that no fewer than three thousand (3000) full-time equivalent employees will be employed at the Casino Complex immediately following
Completion, exclusive of construction workers, and thereafter, so long as casino gaming activities are permitted by law, will employ such number of employees as may be appropriate in the exercise of
Developer's reasonable judgment to operate the Casino Complex in a manner consistent with First Class Casino Complex Standards and in compliance with this Agreement. 

        (d)  Developer
agrees to use reasonable best efforts to attain the goals of employment of Detroit residents set forth in Exhibit A,
Section O. Whenever in this Agreement or the Exhibits, reference is made to "Detroit residents," the first determination of whether an individual is a Detroit resident
shall
be made based on the individual's residence as of his or her date of hire. The determination of whether Developer has achieved its hiring goals with respect to Detroit residents shall be made on each
anniversary of the Completion Date (each, a "Determination Date"). Such goal shall be deemed met if on each Determination Date Developer either
(i) met its hiring goals for Detroit residents since the last Determination Date, based on an individual's residence on his or her date of hire or (ii) Developer then employs no fewer
than the number of Detroit residents established by its hiring goal, based on each individual's most current address on file with Developer. 

        (e)  Developer
agrees to comply with all federal, state and local laws governing equal employment opportunity. 

        (f)    Developer
agrees that it shall notify its contractors and consultants of their obligations relative to non-discrimination under this Agreement when
soliciting same, shall include the provisions of this Section 3.5(f) in each contract with its contractors and consultants and require that its
contractors and consultants include such provision in any subcontract as well as provide the City a copy of any such 

8

 

subcontract upon request. Developer shall have no obligation to enforce such provision if City is given the direct right to enforce such provision in any contract or subcontract. 

        (g)  As
set forth in Exhibit A, Section O, Developer agrees to be committed to affirmative action programs to
increase the numbers of minority and women employees in the workforce of Developer, including professional and management positions. 

        (h)  As
set forth in Exhibit A, Section O, Developer voluntarily commits to hire contractors who agree to
implement an Equal Opportunity Employment Plan conforming to all applicable laws and consistent with Executive Order No. 22, dated August 29, 1983. Developer shall notify its contractors
of their obligations relative to implementing such an Equal Opportunity Employment Plan and shall include such a provision in each contract with its contractors and require that its contractors
include such provision in any subcontract. Developer will have no obligation to enforce such provision if the City is given the direct right to enforce such provision in any contract or subcontract. 

        (i)    Developer
shall use reasonable best efforts to ensure that at least thirty percent (30%) of aggregate amounts expended by Developer under contracts entered into by
Developer for the construction of, or any material additions, improvements or modification to the Casino Complex shall be paid to Detroit-Based Businesses, Detroit Resident Businesses, Small Business
Concerns, Minority business concerns or women-owned businesses. As set forth in Exhibit A, Section S, Developer agrees to use reasonable
best efforts to purchase during each Fiscal Year at least thirty percent (30%) of the total dollar value of all purchases of goods and services from Detroit-Based Businesses, Detroit Resident
Businesses, Small Business Concerns, Minority business concerns or women-owned businesses. 

	(1)
	"Reasonable best efforts" to achieve the goals set forth in this Section 3.5(i)
may include, but are not limited to, the use of Joint Venture arrangements; Mentor Ventures; outreach to Detroit, Minority and women business, trade and professional associations or organizations;
outreach to community organizations; and advertising through media publications or other vehicles reasonably calculated to reach Detroit, Minority and women-owned businesses, including community news
letters.

	(2)
	"Joint Venture" as used in Section 3.5(i)(1) means a combination of separate
business persons or entities, one of which is a Detroit-Based Business, Detroit Resident Business, Small Business Concern, Minority business concern or women-owned business, which has been created to
perform a specific contract and in which one or more of the latter business entities (a) shares in profits and losses, (b) is substantially involved in all phases of the contract
including bidding and staffing; (c) provides a substantial portion of the total performance, responsibility and project management of a specific job; and (d) receives a substantial
portion of the total remuneration from a specific job.

	(3)
	"Mentor Venture" as used in Section 3.5(i)(1) means a combination of a business
entity with a Detroit-Based Business, Detroit Resident Business, Small Business Concern, Minority business concern or women-owned business for the purpose of providing the latter business entity with
training, expertise, skill, experience, market access or other attributes in a business, trade or profession designed to enhance its ability to compete in the marketplace. 

        (j)    Except
as the Agreement or the context may otherwise require, each of Developer's obligations set forth in  Section 3.5(a)-(i) are ongoing and performance thereof shall be determined annually. 

        (k)  Joint
Employment and Procurement Advisory Board 

	(1)
	The
Joint Employment and Procurement Advisory Board (the "JEPAB") is and will be a private entity acting in an advisory capacity to
Developer and the other Detroit Casino Developers. Developer cooperated with the other Detroit Casino Developers to establish and fund the JEPAB. 

9

 

Developer
and each of the other Detroit Casino Developers, at their option, will appoint one (1) member to the JEPAB, and the Mayor and the City Council will each be invited to appoint three
(3) members from the community at large. The public appointees will be non-salaried, but will be entitled to expense reimbursement paid by the JEPAB. 

	(2)
	The
purpose of the JEPAB will be to work closely with the Developer and the other Detroit Casino Developers to evaluate the effectiveness of, and recommend improvements to,
Developer's and each of the other Detroit Casino Developers' respective programs to achieve their goals of not less than fifty-one percent (51%) Detroit resident employment and not less
than thirty percent (30%) procurement of goods and services from Detroit-Based Businesses, Detroit Resident Businesses, minority business concerns, women-owned businesses and/or Small Business
Concerns. The JEPAB will
review Developer's and each of the other Detroit Casino Developer's practices and programs aimed at achieving such goals, review the success of such efforts, recommend improvements and refinements to
such practices and programs, and assist the Developer and each of the other Detroit Casino Developers in involving local community organizations and businesses in support of such efforts.
Additionally, the JEPAB may recommend to Developer and each of the other Detroit Casino Developers the engagement of outside consultants to provide expert, independent guidance as to how to make
Developer's and each of the other Detroit Casino Developers' programs more effective.

	(3)
	The
City will use an aggregate of Two Million Dollars ($2,000,000) from the Minority Business Development Fund to fund the activities of the JEPAB, which amount shall be in addition
to those amounts paid to or received by the JEPAB prior to the date of this Agreement. 

 3.6 Default Rate  

        All amounts, including Development Process Costs, owed by Developer to City and/or EDC pursuant to any provision of this Agreement shall bear interest at the
Default Rate from the due date (but if no due date is specified, then fifteen (15) Business Days from demand for payment) until paid. 

 3.7 Administration of this Agreement  

        (a)  The
Mayor shall designate the City departments, agencies and/or personnel who shall be responsible for the administration of this Agreement; monitoring of the
performance by Developer of its duties and obligations under this Agreement; and making recommendations to the Mayor concerning its enforcement. 

        (b)  No
later than ninety (90) days after the end of each Fiscal Year commencing with the Fiscal Year in which the Closing occurs, Developer shall deliver to City a
report setting forth the following: 

	(1)
	a
description of Developer's efforts to comply with the requirements of Section 3.5(a) during such Fiscal Year;

	(2)
	a
statement as to the number of employees (including the total number of full-time, part-time and full-time equivalent) employed by Developer on
the Completion Date and each Determination Date (as the term is defined in Section 3.5(d));

	(3)
	a
description of any administrative determination, binding arbitration decision, or judgment rendered by a court of competent jurisdiction finding a violation of any federal, state or
local laws governing equal employment opportunity during such Fiscal Year;

	(4)
	a
description of Developer's efforts to comply with the requirements of Section    3.5 (f), (g), (h) and (i) during
such Fiscal Year;

	(5)
	a
statement setting forth material information adequate to enable the City to determine compliance with the "hours of operation" commitments set forth in  Section 3.2; 

10

 
	(6)
	whether
Developer is aware of any non-compliance with the restrictions set forth in Section 3.3(a) or the restrictions on transfer set forth in  Section 8;

	(7)
	a
description of Developer's efforts to comply with the requirements of maintaining the structure of its governing board as set forth in  Section 3.10(a) during such Fiscal Year;

	(8)
	whether
Developer is aware of any non-compliance with the restrictions on transfer set forth in Section 3.3(a)
during such Fiscal Year;

	(9)
	a
description of Developer's efforts to comply with the requirements to conduct casino gaming activities as set forth in  Section 3.13 during such Fiscal Year; and

	(10)
	to
the extent not otherwise covered in response to subparts (b)(1)-(10) above, a description of any change during such Fiscal Year in Developer's efforts to comply with the plans,
measures, commitments, undertakings and covenants set forth on Exhibit A, Sections E, H, I, J, K, L, N, O, P, Q, S, T, U, V, W, X, AA, BB and CC. 

        No
information need be included in such report as to any obligation of Developer which has lapsed or which otherwise does not apply during such Fiscal Year. 

 3.8 Memorandum of Agreement  

        (a)  The
parties agree that the Memorandum of Agreement shall not in any circumstances be deemed to modify or to change any of the provisions of this Agreement. 

        (b)  The
restrictions imposed by and under Section 3.13 (collectively, the
"Restrictions") will be construed and interpreted by the parties hereto as covenants running with the land. Developer agrees for itself, its successors
and assigns to be bound by each of the Restrictions. The City shall have the right to enforce such Restrictions against Developer, its successors and assigns to or of the Casino Complex or any part
thereof or any interest therein. 

 3.9 Financial Statements  

        Developer shall provide City with (i) unaudited Financial Statements for each calendar quarter within sixty (60) days after the end of each quarter
certified as accurate in all material respects by Developer, and (ii) audited Financial Statements prepared in accordance with GAAP within one hundred twenty (120) days after the end of
each Fiscal Year. The City may, in its discretion, provide such Financial Statements to its consultants for review and analysis. 

 3.10 Negative Covenants  

        Developer covenants that except as indicated or as otherwise required by applicable law, at all times during the term of this Agreement: 

        (a)  So
long as Developer is operating the MGM Grand Detroit Casino or the Casino Complex and the primary business conducted there includes casino gaming activities:
(i) Developer will not, except as required by applicable law, make any change in its organizational structure which would result in either (x) the Local Partner having less than
one-third (1/3) representation on the governing body of Developer (which shall have no fewer than nine (9) members), or (y) the material diminution of the
powers of such
governing body; and (ii) the composition of such governing body shall include not less than a majority of African Americans. 

        (b)  Developer
will not, upon an Event of Default or during the continuance of any event which, with the giving of notice or passage of time or both, could become an Event of
Default, declare or pay any dividends or make any other payments or distributions to any members of Developer or their respective Affiliates, except for Permitted Affiliate Payments. 

11

 

        (c)  Until
April 30, 2003, Developer (i) will prohibit a Transfer by Partners Detroit, L.L.C. directly or indirectly of its ownership interest in Developer and
(ii) will cause Partners Detroit, L.L.C. to prohibit a Transfer by a Local Partner of any direct or indirect ownership interest in Partners Detroit, L.L.C., except for a Permitted Transfer. For
purposes of this Section 3.10, a "Permitted Transfer" means any Transfer by a Local Partner of a
direct or indirect ownership interest in Partners Detroit, L.L.C. which meets any of the following: (1) the transferee of the interest is a resident of the State; (2) the transferee of
the interest is a Local Partner; (3) the Transfer is being made due to the economic hardship of the Local Partner; (4) the transferee of the interest is a spouse, child or parent
("Family Members") of a Local Partner; (5) the transferee of the interest is an entity whose beneficial owners consist solely of Local Partners
and/or Family Members; (6) if the transferor is an entity, the transferees of the interest are the beneficial owners of such transferor; (7) the Transfer is by operation of law;
(8) the Transfer is on account of a pledge to (x) an institutional lender or (y) any Person who owns a direct or indirect interest in Developer; (9) the transferee of the
interest is Developer or any of its Affiliates and the failure to purchase the interest would result in any Person who directly or indirectly owns an interest in Developer becoming ineligible to hold
a Certificate of Suitability or Casino License as defined in the Act or otherwise suffering a loss, suspension or inability to obtain a gaming license in any jurisdiction in which Developer, such
Affiliate or Person conducts or proposes to conduct gaming operations; or (10) the transferee is Developer or its Affiliate in the circumstance in which the transferor is in default under its
organizational agreements and the Transfer is made thereunder. In addition, for purposes of this Section 3.10, a
"Permitted Transfer" includes a Transfer or series of related Transfers by Partners Detroit, L.L.C. and/or Local Partners which, when aggregated, equals
forty-nine percent (49%) or less of the ownership interest of Partners Detroit, L.L.C. in Developer. 

        (d)  Developer
shall not enter into any Financing unless all parties under the Financing having a right to foreclose on all or part of the Casino Complex execute an agreement
in form and substance satisfactory to the City in the exercise of its reasonable judgment which is consistent with Section 3.14(b). 

12

  

 3.11 Notification  

        As soon as practicable after obtaining knowledge or notice thereof, Developer shall deliver to City, together with copies of all relevant documentation with
respect thereto: 

        (a)  Notice
of any matured event of default under any financing related to the Casino Complex. 

        (b)  Notice
of all summons, citations, directives, complaints, notices of violation or deficiency, and other communications from any Governmental Authority other than City or
the Board, asserting a material violation of Governmental Requirements applicable to the Casino Complex. 

        (c)  Notice
of any litigation or proceeding in which Developer is a party if an adverse decision therein would, in Developer's reasonable opinion, have a material adverse
effect on Developer's ability to perform its obligations hereunder. 

        (d)  Notices
received by Developer from the Board which in Developer's reasonable opinion assert a material violation of the Act. 

 3.12 Veracity of Statements  

        Except (i) as otherwise indicated herein; and (ii) for statements of third parties (other than Affiliates) which Developer has reasonable grounds to
believe are accurate and for projections which Developer has reasonable grounds to believe are reasonable, no representation or warranty of Developer, or any certification or report furnished by
Developer to City and/or EDC pursuant hereto which, if not materially accurate, would have a material adverse effect on the Casino Complex, when read in conjunction with the other representations,
warranties and certifications, contains or will contain, any untrue statement of a material fact, or will omit any material fact that would cause such representation, warranty, statement or
certification to be materially misleading, provided that representations,
warranties and certifications made as of a specified date shall reflect facts and circumstances known to Developer as of such specified date. 

 3.13 Use of Casino Complex  

        So long as casino gaming activities would be permitted by law to operate at the Casino Complex (assuming the existence of a valid Casino License), the primary
business to be operated at the Casino Complex (as then located) shall include casino gaming activities. The obligations of Developer under this Section shall lapse and be of no further force or effect
on and after April 9, 2033. 

 3.14 Financing  

        (a)  Developer
agrees to deliver to City for City's review, but not approval, relevant documents relating to a Financing. The City must be satisfied in its reasonable
judgment that any "Material Adverse Change or Condition" clause or clause of similar import that condition funding of the financing will not preclude Developer's ability to Complete its Casino Complex
by the Final Completion Date. Delivery by Developer of Parent Company's completion guaranty or Guaranty and Keep Well shall be prima facie evidence that the "Material Adverse Change or Condition"
clause or clause of similar import will not preclude Developer's ability to achieve Completion of the Casino Complex by the Completion Date. 

        (b)  Developer
agrees that it shall not enter into any Mortgage unless such Mortgage shall provide that (i) the Mortgagee shall not transfer or assign its interest in
any Mortgage without City's prior written consent, except to a Suitable Lender; and (ii) if, as the result of a Loan Default, the Mortgagee forecloses upon or otherwise acquires all or part of
Developer's interest in the Casino Complex, the Mortgagee (or the Nominee of the Mortgagee) shall expressly accept and agree to assume all of the terms, covenants and provisions of this Agreement
contained to be kept, observed and performed by 

13

 

Developer and become bound to comply therewith. As used in this Agreement, the word "Nominee" shall mean a Person who is designated by Mortgagee to act in place of the Mortgagee solely for the
purpose of holding title to the Casino Complex and performing the obligations of Developer hereunder. 

        (c)  In
no event may Developer or any Finance Affiliate represent that City is or in any way may be liable for the obligations of Developer or any Finance Affiliate in
connection with (i) any financing
agreement or (ii) any public or private offering of securities. If Developer or any Finance Affiliate shall at any time sell or offer to sell any securities issued by Developer or any Finance
Affiliate through the medium of any prospectus or otherwise that relates to the Casino Complex or its operation, Developer shall (i) first submit such offering materials to City for review with
respect to Developer's compliance with this Section 3.14(c) and (ii) do so only in compliance with all applicable federal and state
securities laws, and shall clearly disclose to all purchasers and offerees that (y) the City shall not in any way be deemed to be an issuer or underwriter of such securities, and (z) the
City and its officers, directors, agents, and employees have not assumed and shall not have any liability arising out of or related to the sale or offer of such securities, including any liability or
responsibility for any financial statements, projections or other information contained in any prospectus or similar written or oral communication. Developer agrees to indemnify, defend or hold the
City and its respective officers, directors, agents and employees free and harmless from, any and all liabilities, costs, damages, claims or expenses arising out of or related to the breach of its
obligations under this paragraph. 

 3.15 Riverfront Site Closeout  

        (a)  At
the Closing, the Conveyance Agreement shall be terminated, and no party thereto shall have any further obligations thereunder. At the Closing, Developer shall release
and convey to the City all its right, title and interest, if any, in the Riverfront Site. 

        (b)  Developer
shall continue to provide credit enhancement for the Riverfront Bonds and shall make all required payments of principal and interest thereon. At the Closing,
Developer shall release and forever waive all of its rights, title and interest in, if any, the amounts held in the Riverfront Bond Fund. Developer may pre-pay, at its option, the
principal of the Riverfront Bonds at any time as provided in the indenture for the Riverfront Bonds. The City will cooperate with Developer in continuing to maintain the Riverfront Bonds in good
standing. 

        (c)  At
the Closing, and subject to the provisions of Section 1.4(a)(7), Developer will provide the documentation
described in Section 1.4(a)(7) with respect to the Railroad Property. 

        (d)  Except
as and to the extent set forth in the Indemnity Agreement, Developer's obligations set forth in Sections 3.15(a), (b) and
(c) are in full discharge of all its obligations relating to the Riverfront Site. Developer shall have no other liability or obligation, if any, with respect to the Riverfront
Site, or the condemnation, acquisition, optioning or ownership of the Riverfront Site by the City and the EDC, or the relocation of businesses located therein, or any other matter related to or
arising out of the foregoing. By way of example, and not of limitation, Developer shall have no obligation to City or EDC to contribute to the purchase of property, the relocation of businesses, the
maintenance of the Riverfront Site, the payment of environmental claims or costs, or the payment of inverse condemnation claims or other claims by landowners. Nothing contained in either this  Section 3.15(d)
 or elsewhere in
this Agreement shall be construed as an admission by any party as to the existence of any such liability or obligation on the party of the City or Developer and all of such claims are expressly
denied. 

        (e)  The
City and EDC agree to execute and provide at the Closing the form of release as attached hereto as  Exhibit 3.15(e)(2). The Developer agrees to execute and provide at the Closing the form of release
as attached hereto as  Exhibit 3.15(e)(1). 

14

 

 3.16 Financial Commitments By Developer  

        (a)  Subject
to Section 3.16(c), Developer shall make the following payments to the City: 

	(i)
	Developer
shall pay the sum of Seventeen Million Dollars ($17,000,000) to the City within sixty (60) days of City Council's approval of this Agreement;

	(ii)
	Developer
shall pay the sum of Ten Million Dollars ($10,000,000) to the City as Developer's contribution to the Minority Business Development Fund, in four (4) equal
installments as follows:

	[a]
	Two
Million Five Hundred Thousand Dollars ($2,500,000) within one hundred-twenty (120) days of City Council's approval of this Agreement;

	[b]
	Two
Million Five Hundred Thousand Dollars ($2,500,000) within one hundred-eighty (180) days of City Council's approval of this Agreement;

	[c]
	Two
Million Five Hundred Thousand Dollars ($2,500,000) within two hundred-forty (240) days of City Council's approval of this Agreement; and

	[d]
	Two
Million Five Hundred Thousand Dollars ($2,500,000) within three hundred (300) days of City Council's approval of this Agreement. 

	(iii)
	Developer
shall pay the sum of Seventeen Million Dollars ($17,000,000) to the City in twelve (12) equal monthly installments, each such installment being paid on the first
day of the month, commencing on June 1, 2003, and continuing each successive month thereafter until fully paid.

	(iv)
	From
and after January 1, 2006, Developer shall pay to the City an amount equal to one percent (1%) of the Adjusted Gross Receipts received daily by Developer (the
"Percentage Payment"). The Percentage Payment shall be remitted daily by Developer to the City by electronic wire transfer of funds commencing on
January 1, 2006 and continuing throughout the term of this Agreement (the "Payment Period"). If in any calendar year during the Payment Period
Developer's aggregate Adjusted Gross Revenues for such year equals Four Hundred Million Dollars ($400,000,000) (the "Target Amount"), then commencing on
the date such Target Amount is reached and continuing to the end of that calendar year, the Percentage Payment shall be increased to two percent (2%). Additionally, within ten (10) Business
Days of the date the Target Amount is reached, Developer shall pay to the City an amount equal to Four Million Dollars ($4,000,000). For ease of administration and to the extent practicable, the
procedures for daily remittance of the Percentage Payment shall be consistent with the procedures used by the State for the remittance of the City's portion of the wagering tax. 

        (b)  The
requirements of Section 3.16(a) are in lieu of Developer's obligation to establish and fund the Business
Development Fund as described on Exhibit 8.1(m) of the Amended Agreement and the JEPAB and such obligations are hereby terminated, except as
specifically referenced in Section 3.16(a). In addition, the requirements of  Section 3.16(a) are in consideration of the City's agreement
pursuant to Section 2.2 to
defer Developer's obligation to construct the Additional Hotel Rooms as required under the Amended Agreement. At the Closing, Developer shall release any rights it may have to demand repayment of any
such funds previously paid to or on behalf of the City and no such funds shall offset any amounts otherwise payable to the City by Developer. 

        (c)  Developer's
obligations under Section 3.16(a) shall be suspended for so long as there exists any order or
injunction issued by any court having proper jurisdiction in the matter, which order or injunction either (i) revokes or suspends Developer's Casino License for reasons beyond Developer's
control; or (ii) enjoins Developer or anyone on its behalf from operating the Casino or (iii) would 

15

 

deprive Developer of a material portion of the economic benefits anticipated from the Casino Complex. 

        (d)  The
City agrees to establish the Minority Business Development Fund from the funds received from Developer under  Section 3.16(a)(ii), together with (x) funds in the same amounts which the City
will require to be paid by the other Detroit Casino
Developers and (y) an additional Ten Million Dollars ($10,000,000) from other funds received hereunder from Developer and all other Detroit Casino Developers under their respective development
agreements. 

 3.17 Guaranty and Keep Well Agreement  

        At closing, Developer will cause Parent Company to re-execute and deliver a Guaranty and Keep Well Agreement in substantially the form of  Exhibit 3.17 attached hereto. 

4. Representations and Warranties  

 4.1 Representations and Warranties of Developer  

        Subject to Section 3.12 (Veracity of Statements), Developer represents and warrants to City that each of
the following statements is true and accurate as of the Closing, except as otherwise indicated herein or in the Exhibits referenced herein: 

        (a)  Developer
is a limited liability company duly organized and validly existing under the laws of Delaware, and has all requisite power and authority to enter into and
perform its obligations under this Agreement and all other agreements and undertakings to be entered into by Developer in connection herewith. 

        (b)  This
Agreement and, to the extent such documents currently exist in a form accepted by City and Developer, each document contemplated or required by this Agreement to
which Developer is a party has been duly authorized by all necessary action on the part of, and has been or will be duly executed and delivered by, Developer; is binding on Developer; and is
enforceable against Developer in accordance with its terms, subject to applicable principles of equity and insolvency laws. 

        (c)  Attached
hereto is Exhibit A containing Sections A-CC
(each a "Section"), which include certain representations, warranties and commitments of Developer. When considered individually, no Section contains an
untrue statement or omits to state any material fact which would cause such statement to be materially misleading. 

        (d)  Developer
is not a party to any agreement, document or instrument that has a material adverse effect on the ability of Developer to carry out its obligations under this
Agreement. 

        (e)  Neither
execution of this Agreement nor discharge by Developer of any of its obligations hereunder shall cause Developer to be in violation of any applicable law, or
regulation, its charter or other organizational documents or any agreement to which it is a party. 

 4.2 Representations and Warranties of the City  

        City represents and warrants to Developer that each of the following statements is true and accurate as of the Closing: 

        (a)  City
is a validly existing municipal corporation and has all requisite power and authority to enter into and perform its obligations under this Agreement, and all other
agreements and undertakings to be entered into by City in connection herewith. 

        (b)  This
Agreement and, to the extent such documents currently exist in a form accepted by City and Developer, each document contemplated or required by this Agreement to
which City is a party 

16

 

has been duly authorized by all necessary action on the part of, has been or will be duly executed and delivered by City; is binding on City; and is enforceable against City in accordance with its
terms, subject to applicable principles of equity and insolvency laws. 

        (c)  Neither
execution of this Agreement nor discharge by the City of any of its obligations hereunder shall cause City to be in violation of any applicable law, or
regulation, its charter or organizational documents or any agreement to which it is a party. 

        (d)  The
term sheets dated March 26, 2002 entered by the City, the EDC and other Detroit Developers are substantially consistent with the Term Sheet of that date
entered into by the City, the EDC and Developer. 

 4.3 Representations and Warranties of the EDC  

        EDC represents and warrants to Developer that each of the following statements is true and accurate as of the Closing: 

        (a)  EDC
is a validly existing State public body corporate and has all requisite power and authority to enter into and perform its obligations under this Agreement, and all
other agreements and undertakings to be entered into by EDC in connection herewith. 

        (b)  This
Agreement and, to the extent such documents currently exist in a form accepted by EDC and Developer, each document contemplated or required by this Agreement to
which EDC is a party has been duly authorized by all necessary action on the part of, has been or will be duly executed and delivered by EDC; is binding on EDC; and is enforceable against EDC in
accordance with its terms, subject to applicable principles of equity and insolvency laws. 

        (c)  Neither
execution of this Agreement nor discharge by the EDC of any of its obligations hereunder shall cause EDC to be in violation of any applicable law, or regulation,
its charter or other organizational documents or any agreement to which it is a party. 

5. Other Obligations of City  

 5.1 Re-Selection  

        (a)  For
purposes of this Section 5.1, "Triggering Event" means the
ineligibility of Developer to operate the Casino as a result of a final, non-appealable court judgment or court order or any re-selection process undertaken by the City as a
result of any final, non-appealable court judgment or order, other than a court judgment or court order issued in connection with any action resulting from the City's enforcement of its
respective rights under this Agreement. 

        (b)  The
City agrees to use its reasonable best efforts to have three casino developers as permitted under the Act. Accordingly, in the event a Triggering Event occurs, the
City agrees to use its reasonable best efforts to reselect a developer (a "New Developer") with which the City and EDC will enter into a development
agreement (a "New Agreement") for the development of a casino complex, upon the terms and conditions set forth in  Section 5.1(c). 

        (c)  If
the New Agreement is not with the Developer, the New Agreement will require that the New Developer purchase from Developer for cash Developer's assets, business and
operations relating to the Casino Complex (including any uncompleted portions of the Casino Complex), as a going concern, at their fair market value pursuant to a purchase and sale agreement in form
and substance satisfactory to Developer. Such fair market value shall be determined by an investment banker knowledgeable in casino gaming matters selected by agreement of Developer and the New
Developer. If Developer and New Developer cannot agree on the selection of an investment banker, the fair market value shall be determined by an investment banker selected by the City who has not been 

17

 

materially involved with the Detroit Casino Complexes and who is knowledgeable in casino gaming matters. The New Developer's obligation to purchase the Casino Complex will be conditioned upon and
subject to Developer's assignment to New Developer of any premise leases for the Casino Complex, together with any landlord's consent if required pursuant to any such leases. The assets to be sold
shall exclude all of Developer's intellectual property, including without limitation, trademarks, trade names, copyrights, patents, trade secrets, processes and other proprietary information. 

        (d)  Developer
agrees to enter into a purchase and sale agreement which meets the requirements of Section 5.1(c) with
the New Developer pursuant to which Developer will sell to New Developer for cash Developer's assets, business and operations relating to the Casino Complex, as a going concern, and to assign to New
Developer any premises leases for the Casino Complex, all as provided in this Section 5.1. 

        (e)  To
the extent permitted by law, the provisions of this Section 5.1 shall, survive termination of this Agreement
and shall be severable from the other provisions of this Agreement (including the provisions of this Agreement permitting Developer to operate the Casino) and shall continue in effect and shall be
enforced regardless of whether any or all of the other provisions of this Agreement are adjudicated to be invalid or unenforceable. 

18

   6. Default  

 6.1 Events of Default  

        The occurrence of any of the following shall constitute an "Event of Default" under this Agreement: 

        (a)  Subject
to Force Majeure, if Developer or City fails to substantially perform or comply with any commitment, agreement, covenant, term or condition (other than those
specifically described in any other subparagraph of this Section 6.1) of this Agreement,
including those certain covenants set forth in Section 3.5 hereof, and in such event if said
defaulting party shall fail to remedy any such default within thirty (30) days after receipt of written notice of default with respect thereto; provided,
however, that if any such default is reasonably susceptible of being cured within one hundred eighty (180) days, but cannot with due diligence be cured by the defaulting
party within thirty (30) days, and if the defaulting party commences to cure the default within thirty (30) days and diligently prosecutes the cure to completion, then the defaulting
party shall not during such period of diligently curing be in default hereunder as long as such default is completely cured within one hundred eighty (180) days of the first notice of such
default to said defaulting party; provided, however, that if the cure can be accomplished by the payment of money, the failure to pay is not a diligent
commencement of a cure; 

        (b)  If
Developer shall make a general assignment for the benefit of creditors or shall admit in writing its inability to pay its debts as they become due; 

        (c)  If
Developer shall file a voluntary petition under any title of the United States Bankruptcy Code, as amended from time to time, or if such petition is filed
against Developer and an order for relief is entered, or if Developer shall file any petition or answer seeking, consenting to or acquiescing in any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or any future federal bankruptcy code or any other present or future applicable federal, state or similar statute or law, or
shall seek or consent to or acquiesce to or suffer the appointment of any trustee, receiver, custodian, assignee, liquidator or similar official of Developer, or of all or any substantial part of its
properties or of the Casino Complex or any interest therein of Developer; 

        (d)  If
within ninety (90) days after the commencement of any proceeding against Developer seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the present or any future federal bankruptcy code or any other present or future applicable federal, state or similar statute or law, such proceeding
shall not have been dismissed; or if within ninety (90) days after the appointment, without the consent or acquiescence of Developer of any trustee, receiver, custodian, assignee, liquidator or
other similar official of Developer or of all or any substantial part of its properties or of the Casino Complex or any interest therein of Developer, such appointment shall have not been vacated or
stayed on appeal or otherwise, or if within ninety (90) days after the expiration of any such stay, such appointment shall not have been vacated; 

        (e)  If
any representation or warranty made by Developer hereunder is intentionally false or misleading in any material respect when made and such false or misleading
representation or warranty has a material adverse effect on the Casino Complex; 

        (f)    If
a default shall occur, which has not been cured within any applicable cure period, under, or if there is any attempted withdrawal, disaffirmance, cancellation,
repudiation, disclaimer of liability or contest of obligations (other than a contest as to performance of such obligations) under any agreement which guaranties the payment or performance of any of
the obligations of Developer to City and/or EDC hereunder, other than as may be permitted in such agreement; 

        (g)  Subject
to Force Majeure, if in accordance with Section 9 Developer fails to maintain in full force and policies
of insurance meeting the requirements of Section 9 and in such event Developer fails 

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to remedy such default within five (5) Business Days after Developer's receipt of written notice of default with respect thereto from City; 

        (h)  If
the construction of the Casino Complex at any time is discontinued or suspended for a period of forty-five (45) consecutive calendar days, subject
to Force Majeure and is not restarted prior to Developer's receipt of written notice of default hereunder; 

        (i)    If
the Final Completion does not occur by the Final Completion Date; 

        (j)    If
the Casino License is revoked by a final, non-appealable order or Developer fails to renew its Casino License; or 

        (k)  If
Developer fails to make any of those payments described in Section 3.16 when required and fails to make such
payment within five (5) days after receiving written notice of default from the City. 

 6.2 Remedies  

        (a)  Subject
to the limitations set forth in Section 6.5, upon an Event of Default, City and/or EDC, as applicable,
shall have the right if it so elects: (i) to any and all remedies available at law or in equity; (ii) to terminate this Agreement; (iii) to receive liquidated damages as and to
the extent set forth in this Agreement and (iv) to institute and prosecute proceedings to enforce in whole or in part the specific performance of this Agreement by Developer, and/or to enjoin
or restrain Developer from commencing or continuing said breach, and/or to cause by injunction Developer to correct and cure said breach or threatened breach (a "Specific
Performance Proceeding"). Except as and to the extent set forth in Section 6.5, none of the remedies enumerated herein is
exclusive and nothing herein shall be construed as prohibiting City and/or EDC, as applicable, from pursuing any other remedies at law, in equity or otherwise available to it under the Agreement. 

        (b)  Subject
to the limitations set forth in Section 6.5, the rights and remedies of the City and EDC, as applicable,
whether provided by law or by this Agreement, shall be cumulative, and the exercise by the City and/or EDC of any one or more of such remedies shall not preclude the exercise by it, at the same or
different times, of any other such remedies for the same default or breach, to the extent permitted by law. No waiver made by the City and/or EDC shall apply to obligations beyond those expressly
waived in writing. 

        (c)  (i) Subject
to Section 6.2(c)(ii) below, if the City and/or EDC, as applicable, fails to perform an act
required under this Agreement within the time specified in this Agreement (or if no time is specified, within a reasonable time), Developer's sole and exclusive remedies against City and/or EDC shall
be to institute and prosecute proceedings to: (x) enforce in whole or in part the specific performance of this Agreement by City and/or EDC, and/or to enjoin or restrain City and/or EDC from
commencing or continuing said breach, and/or cause by injunction City and/or EDC to correct and cure said breach or threatened breach; or (y) reform this Agreement in such respects as may be
determined to be equitable in light of the failure of City and/or EDC. 

        (c)  (ii) Notwithstanding
anything to the contrary set forth in Section 6.2(c)(i) above, with respect to any
defaults or breaches by the City and/or EDC of any of their obligations under Section 5.1 or  Section 14.26, Developer shall have available all
rights and remedies under applicable law, in equity, or under this Agreement, on a cumulative
basis, and the exercise by Developer of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or
breach. 

20

 

        (d)  If
an Event of Default shall occur to which a Mandatory Sale is a remedy available to the City (a "Significant Event of
Default"), the following procedures shall be applicable and shall constitute a Mandatory Sale: 

	(1)
	Following
the occurrence of a Significant Event of Default which has not been cured within the time provided by this Agreement (a "Matured Significant Event of
Default"), the City may, on written notice to Developer delivered within sixty (60) days following the Significant Event of Default becoming a Matured Significant Event
of Default (the "Mandatory Sale Notice"), institute the procedures set forth in this Section 6.2(d); provided
however; (i) if the City fails to deliver such Mandatory Sale Notice to Developer within such sixty (60) day period, the City shall be deemed to have waived the
Mandatory Sale remedy with respect to that Matured Significant Event of Default, and (ii) notwithstanding the expiration of the applicable cure period, if Developer shall have cured the Matured
Event of Default prior to the delivery of such Mandatory Sale Notice, the remedy of Mandatory Sale shall not be available with respect to that Matured Significant Event of Default.

	(2)
	Following
receipt of a timely Mandatory Sale Notice, Developer shall commence good faith efforts to dispose of the Casino Complex in a manner consistent with this Agreement, including
satisfying all the requirements of Section 8. In effecting such disposition, Developer shall be entitled to seek to maximize its own economic
return, subject to consultation with the City and taking into account the findings set forth in Section 1.1 (Findings). Subject to  Section 6.2(d)(3), during the period in which Developer is endeavoring to effect the disposition of the Casino Complex in a Mandatory Sale (the
"Sale Period"), it shall continue to operate the Casino Complex pursuant to and in accordance with this Agreement.

	(3)
	Notwithstanding
anything to the contrary provided for in Section 6.2(d)(2) above, the Casino Complex shall be operated during
the Sale Period by a conservator qualified under the Act on the occurrence and for the duration of any of the following events: (i) Developer's Casino License is revoked by a final,
non-appealable order or Developer fails to renew its Casino License; (ii) at the election of City upon written notice to Developer, if the disposition of the Casino Complex has not
been completed within three (3) years following delivery of a timely Mandatory Sale Notice; (iii) at the election of City upon written notice to Developer, upon the occurrence of a
Matured Significant Event of Default other than the one giving rise to the Mandatory Sale Notice.

	(4)
	Prior
to completion of the disposition of the Casino Complex pursuant to a Mandatory Sale, Developer and City may mutually agree to terminate the disposition process, in which event
the Mandatory Sale Notice shall be deemed to have been withdrawn and to be of no force or effect.

	(5)
	For
purposes of Section 6.5(b)(2), the term "Shortfall Amount" shall mean the
amount, if any, by which the (x) City's share of the Wagering Tax and (y) Municipal Services Fee derived from the operation of the Casino Complex during the Sale Period is less than the
lesser of (1) eighty percent (80%) of the (x) City's share of the Wagering Tax and (y) Municipal Services Fee derived from the operation of the Casino Complex for the full twelve
(12) calendar months immediately preceding the delivery of the Mandatory Sale Notice (or if the Casino Complex has been open for fewer than twelve (12) months, for that number of full
calendar months that it has been opened) divided by twelve (12) (or such fewer number of full months in which the Casino Complex has been open) and multiplied by the number of full calendar
months of the Sale Period; or (2) eighty percent (80%) of fifty percent (50%) of the (x) City's share of the Wagering Tax and (y) Municipal Services Fee derived from the operation
of the other Detroit Casino Complexes during the Sale Period; provided however, in no event shall the Shortfall Amount exceed Fifty Million Dollars ($50,000,000). By way of 

21

 

illustration,
if: (i) the Sale Period is eighteen (18) months; (ii) the (x) City's share of Wagering Tax and (y) Municipal Services Fee derived from the Casino
Complex during the twelve (12) month period preceding the Sale Period is Twenty-Four Million Dollars ($24,000,000); (iii) the (x) City's share of the Wagering Tax and
(y) Municipal Services Fee derived from the Sale Period is Twenty-Four Million Dollars ($24,000,000); and (iv) eighty percent (80%) of fifty percent (50%) of the aggregate of
the (x) City's share of the Wagering Tax and (y) Municipal Services Fee derived from the other Detroit Casino Complexes during the Sale Period is Thirty Million Dollars ($30,000,000),
then the Shortfall Amount computed under clause (1) would be Four Million Eight Hundred Thousand Dollars ($4,800,000) ($1.6 million multiplied by 18, i.e. $28.8 million; reduced
by $24 million), and the Shortfall Amount computed under clause (2) would be Six Million Dollars ($6,000,000) ($30 million reduced by $24 million). Since the computation
under clause (1) produces a lower number than the computation under clause (2), the Shortfall Amount computed under clause (1) would apply. 

        (e)  If
the City elects to receive liquidated damages upon the occurrence of an Event of Default enumerated in Section 6.5(a) or
(e), Developer shall pay to City as the sole remedy of the City and as liquidated damages (and not as a penalty), an amount per calendar day for each calendar day during the
"Damage Period," as hereinafter defined, equal to Fifty Thousand Dollars ($50,000). For purposes of this Section 6.2(e), the Damage Period shall
commence on the date the City delivers written notice to Developer of its election to receive liquidated damages pursuant to Section 6.5(a) or
(e) and shall continue until the date that such default is cured. The foregoing limitation on City's remedies shall in no way limit or diminish City's rights or remedies under
the Guaranty and Keep Well Agreement. 

        (f)    EDC
agrees that (1) it has no right to, and shall not attempt to elect to exercise or exercise any remedy on behalf of the City under this Agreement and Guaranty
and Keep Well Agreement and (2) it shall not elect to exercise or exercise any remedy under this Agreement and Guaranty and Keep Well Agreement without the consent of the Mayor. 

 6.3 Termination  

        Except for the provisions that by their terms survive, this Agreement shall terminate as provided in this Agreement. 

 6.4 Liquidated Damages  

        City, EDC and Developer covenant and agree that because of the difficulty and/or impossibility of determining City's and/or EDC's damages upon certain Events of
Default and breaches of this Agreement as set forth in Sections 6.2(d) and (e), by way of detriment to the public benefit and welfare of the City
through lost employment opportunities, lost tourism, degradation of the economic health of the City and loss of revenue, both directly and indirectly, Developer shall pay to City, as liquidated
damages and not as a penalty, the sum or sums set forth in Sections 6.2(d) and (e) that pertain to the specified Event of Default. 

 6.5 Limitation of Remedies  

        City's and EDC's remedies under Sections 6.2(a) and (b) for and only for the Events of Default enumerated below in
this Section 6.5, shall be limited as follows: 

        (a)  Upon
an Event of Default arising under Section 6.1(a) due to the breach by Developer of any of its obligations
specified in Section 1.4 (Closing) or Section 6.1(k), City may elect either to
(i) institute a Specific Performance Proceeding; and/or (ii) (x) receive liquidated damages from Developer calculated as set forth in  Section 6.2(e); and/or (y) terminate this
Agreement and require a Mandatory Sale. 

22

 

        (b)  Upon
an Event of Default arising under Section 6.1(a) due to a breach by Developer of any of the following
obligations specified in this Section 6.5(b), City may elect either to (i) institute a Specific Performance Proceeding; and/or either
(ii) require a Mandatory Sale and receive the Shortfall Amount as liquidated damages from Developer; or (iii) receive actual damages from Developer:  Section 3.12 (Veracity of Statements);
Section 3.13 (Use of Casino Complex); failure of
Developer to complete the Restoration as required under Section 11 (Damage and Destruction); or upon an Event of Default arising under  Sections 6.1(b), (c), (d), (e),
(f) or (j). 

        (c)  Upon
an Event of Default arising under Section 3.3 (Radius Restriction) by Developer and/or Parent Company, City
may elect either to (i) institute a Specific Performance Proceeding and/or (ii) terminate this Agreement. 

        (d)  Upon
an Event of Default arising under Section 6.1(a) due to the breach by Developer of any of its obligations
under Section 3.1 (Casino Complex Operations), City may elect either to (i) institute a Specific Performance Proceeding and/or
(ii) receive actual damages from Developer, provided however, that if in a Specific Performance Proceeding, the arbitrator or arbitrators determine that Developer is not maintaining or
operating the Casino Complex in a manner consistent with First Class Casino Complex Standards, but are unable or unwilling to fashion a specific performance remedy, in lieu thereof the arbitrator or
arbitrators may require Developer to increase its spending for capital improvements or maintenance by Five Hundred Thousand Dollars ($500,000) over the ensuing twelve (12) month period (the
"Initial Period"). If during the twelve (12) month period immediately following the Initial Period (the "Subsequent
Period"), the City, by reason of an additional Event of Default under Section 6.1(a) due to a breach by Developer of any
of its obligations under Section 3.1, initiates a Specific Performance Proceeding, and the arbitrator or arbitrators determine that Developer is
not maintaining or operating the Casino Complex in a manner consistent with First Class Casino Complex Standards, but are unable or unwilling to fashion a specific performance remedy, in lieu thereof
the arbitrator or arbitrators may require Developer to increase its spending for capital improvements or maintenance by One Million Dollars ($1,000,000) over the ensuing twelve (12) month
period. 

        (e)  Upon
an Event of Default arising under Section 6.1(i), City may elect either to (i) institute a Specific
Performance Proceeding; and/or either (ii) require a Mandatory Sale and receive the Shortfall Amount as liquidated damages from Developer; (iii) receive actual damages from Developer; or
(iv) receive liquidated damages from Developer. 

        The
foregoing limitations on City's and EDC's remedies under Section 6.5 shall in no way limit or diminish any other right of City
or EDC under this Agreement or otherwise, including City's or EDC's rights or remedies (x) under the Guaranty and Keep Well Agreement, or under any other guaranty, indemnity, instrument or
agreement or (y) under Sections 3.6 (Default Rate), 6.2(d) and (e), Section 7 (City's
right to perform Developer's covenants), Section 9 (Insurance) or Section 11 (Damage and
Destruction). 

7. City's Right to Perform Developer's Covenants  

        If Developer at any time shall fail to take out, pay any insurance premiums for, maintain or deliver any of the insurance policies in the manner provided for
herein, or shall fail to pay any sums, costs, expenses, charges, payments or deposits to be paid by Developer hereunder after notice and the expiration of any applicable cure period, City, without
waiving or releasing Developer from any obligation of Developer contained in this Agreement or waiving or releasing any rights of City hereunder, at law or in equity, may (but shall be under no
obligation to) pay any such sums, costs, expenses, charges, payments or deposits payable by Developer hereunder. All sums paid by City and all
costs and expenses incurred by City in connection with the performance of any such obligation, together with interest thereon at the Default Rate from the respective dates of City's making of each
such payment or incurring of each such sum, cost, liability, expense, charge, payment or deposit until 

23

 

the date of actual repayment to City, shall be paid by Developer to City on demand. Any payment or performance by City pursuant to the foregoing provisions of this Section shall not be nor be deemed
to be a waiver or release of breach or default of Developer with respect thereto or of the right of City to take such other action as may be permissible hereunder, at law or in equity if an Event of
Default by Developer shall have occurred. The City's rights under this Section 7 shall survive termination of this Agreement. 

8. Transfers  

 8.1 Transfer of Development Agreement  

        Developer shall not, whether by operation of law or otherwise, Transfer this Agreement or the Casino Complex without the prior written consent of the Mayor and
City Council; provided, however, that the Mayor and City Council's right to consent to the Transfer of the Casino Complex shall be of no further force
and effect at such time as the business operated at the Casino Complex no longer includes gaming activities. 

 8.2 Transfer of Ownership Interest  

        (a)  For
purposes of this Section 8.2, "Restricted Owner" means
(i) Developer and (ii) any Person who directly or indirectly owns or holds any interest in Developer or any Casino Component Manager/Operator of a Component other than any Person who
would be a Restricted Owner due solely to that Person's ownership of (x) a direct or indirect interest in a Publicly Traded Corporation or (y) a five percent (5%) or less direct or
indirect interest in (1) Developer unless, in the case of clause (y), upon completion of any Transfer the transferee will in the aggregate own or hold a five percent (5%) or more direct
or indirect ownership interest in Developer, or (2) the Casino Component Manager/Operator of a Component. The covenants that Developer is to perform under this Agreement for City's and EDC's
benefit and the services that each Casino Component Manager/Operator of a Component renders with respect to the Casino Complex are personal in nature. City and EDC are relying upon Developer and the
Casino Component Manager/Operators in the exercise of their skill,
judgment, reputation and discretion with respect to the Casino Complex. From and after the Execution Date under the Amended Agreement, any Transfer by a Restricted Owner of (x) any direct
ownership interest in Developer or any Casino Component Manager/Operator of a Component, whether held by virtue of partnership, limited liability company, corporation or other form of entity; or
(y) any ownership interest in any Restricted Owner, whether held by virtue of partnership, limited liability company, corporation or through other form of entity shall require the prior written
consent of City, provided that with respect to a Transfer by any Restricted Owner other than a Transfer by Developer, any Affiliate of Developer or any Affiliate of any Casino Component
Manager/Operator of a Component, City shall not withhold its consent to any Transfer unless the transferee (i) is in default on any debts due City, EDC or any other entity (a
"Municipal Supported Entity") that receives or received any City funding or subsidy to carry out its activities; (ii) has defaulted on any other
material obligations to City, EDC or any Municipal Supported Entity whether or not such default has been cured; or (iii) has engaged in any frivolous litigation or made any frivolous claims
against City as determined by a court, or has been found liable to the City for abuse of process or malicious prosecution with respect to claims against the City. 

        (b)  Nothing
contained in this Section 8.2 shall prevent a Transfer of (x) an ownership interest in a Restricted
Owner by: (i) Parent Company or an Affiliate of Parent Company to an entity which has succeeded to all or a substantial portion of the assets of Parent Company or such Affiliate; or
(ii) any Person (1) to that Person's spouse, child or parent ("Family Members"); (2) to an entity whose beneficial owners consist
solely of such transferor and/or the Family Members of the transferor; (3) to the beneficial owners of the transferor if the transferor is an entity; (4) to any Person who owns any
direct or indirect interest in any Restricted Owner; (5) to any Person to whom the City previously has 

24

 

consented to a Transfer; (6) by operation of law; and (7) to an institutional lender on account of a pledge to such lender or (y) an ownership interest in Developer or Restricted
Owner or in any Affiliate of Developer or Restricted Owner in connection with a public offering registered pursuant to the Securities Act. 

        (c)  All
transferees shall hold their interests subject to the restrictions of this Section 8. 

        (d)  Developer
shall notify City as promptly as practicable upon Developer becoming aware of any Transfer. 

        (e)  Developer
agrees to (x) include in all Casino Component Management Agreements of a Component a transfer restriction provision substantially similar to the
transfer restriction set forth in this Section 8.2 and to cause the Casino Component Manager/Operator of a Component to acknowledge that City is
a third-party beneficiary of such provision; and (y) cause each Restricted Owner, other than a Publicly Traded Corporation, to (1) place a legend on its ownership certificate, if any, or
include in its organizational documents, a transfer restriction provision substantially similar to the transfer restriction set forth in this  Section 8.2 and (2) either enforce such provision
or acknowledge that City is a third-party beneficiary of such provision. 

9. Insurance  

 9.1 Maintain Insurance  

        Developer shall maintain in full force and effect the types and commercially reasonable amounts of insurance as set forth on  Exhibit 9.1 to the extent available at commercially reasonable rates. Self insurance shall be permitted in accordance with First Class Casino
Complex Standards. 

25

  

 9.2 Form of Insurance and Insurers  

        Whenever, under the terms of this Agreement, Developer is required to maintain insurance, City and EDC shall be additional named insureds in all such insurance
policies to the extent of their insurable interest, if any. All policies of insurance provided for in this Agreement shall be effected under valid and enforceable policies, in commercially reasonable
form issued by responsible insurers which are authorized to transact business in the State, having a Best rating of not less than A+ or its equivalent from another recognized rating agency. As soon as
practicable following the Closing Date, Developer shall deliver to City and EDC a copy of each policy, together with proof reasonably satisfactory to City and EDC that the full premiums have been paid
or provided for at least the first year of the term of such policies. Thereafter, as promptly as practicable prior to the expiration of each such policy, Developer shall deliver to City and EDC an
Accord certificate, together with proof reasonably satisfactory to City and EDC that the full premiums have been paid or provided for at least the renewal term of such policies and as promptly as
practicable, a copy of each renewal policy. 

 9.3 Other Policies  

        Developer shall not take out separate insurance concurrent in form or contributing in the event of loss with that required in this Agreement unless City and EDC
are additional named insureds therein to the extent of their insurable interest, if any, with loss payable as provided in Section 9.2. Developer
shall as promptly as practicable notify City and EDC of the taking out of any such separate insurance and shall cause copies of the original policies in respect thereof to be delivered as required in  Section 9.2. 

 9.4 Insurance Notice  

        Each such policy of insurance to be provided hereunder shall contain, to the extent obtainable on a commercially reasonable basis, (a) a provision that no
act or omission of Developer which would otherwise result in forfeiture or reduction of the insurance therein provided shall affect or limit the obligation of the insurance company to pay City or EDC
the amount of any loss sustained to the extent of its insurable interest, if any, and (b) an agreement by the insurer that such policy shall not be
canceled or modified without at least thirty (30) days prior written notice by registered mail, return receipt requested, to City and EDC. 

 9.5 Keep in Good Standing  

        Developer shall observe and comply with the requirements of all policies of public liability, fire and other policies of insurance at any time in force with
respect to the Casino Complex and Developer shall so perform and satisfy the requirements of the companies writing such policies. 

 9.6 Blanket Policies  

        Any insurance provided for in this Article may be provided by blanket and/or umbrella policies issued to Developer covering the Casino Complex and other
properties owned or leased by Developer; provided, however, that the amount of the total insurance allocated to the Casino Complex shall be such as to
furnish in protection the equivalent of separate policies in the amounts herein required without possibility of reduction or coinsurance by reason of, or damage to, any other premises covered therein,
and provided further that in all other respects, any such policy or policies shall comply with the other specific insurance provisions set forth herein and Developer shall make such policy or policies
or a copy thereof available for review by City and EDC at the Casino Complex. 

26

 

10. Environmental  

 10.1 Representations and Warranties  

        Developer, as a further inducement to the City to enter into this Agreement makes the following representations and warranties: 

	(a)
	Neither
Developer nor any Affiliate of Developer, has disposed, stored, discharged, treated, or released any hazardous substance or waste, as defined in the Environmental Laws, in
violation of any Environmental Law, at, on, in, under, to or from the Railroad Property.

	(b)
	Developer
has complied in all material respects with all Environmental Laws, to the extent applicable to Developer in connection with the Railroad Property. 

 10.2 Indemnity  

        Developer shall indemnify, defend and hold harmless the City from any and all claims or demands (including reasonable attorney's fees) resulting directly or
indirectly from violation of Section 10.1.

 10.3 Survival  

        The provisions of this Section 10 shall survive any termination of this Agreement and shall not be deemed
to be merged with any deed. 

11. Damage and Destruction  

 11.1 Damage or Destruction  

        In the event of damage to or destruction of improvements at the Casino Complex or any part thereof by fire, casualty or otherwise, Developer, at its sole expense
and whether or not the insurance proceeds, if any, shall be sufficient therefor, shall promptly repair, restore, replace and rebuild (collectively,
"Restore") the improvements, as nearly as possible to the same condition that existed prior to such damage or destruction using materials of an equal or
superior quality to those existing in the improvements prior to such casualty. All work required to be performed in connection with such restoration and repair is hereinafter called the
"Restoration." Developer shall obtain a permanent certificate of occupancy as soon as practicable after the completion of such Restoration. If neither
Developer nor any Mortgagee shall commence the Restoration of the improvements or the portion thereof damaged or destroyed promptly following such damage or destruction and adjustment of its insurance
proceeds, or, having so commenced such Restoration, shall fail to proceed to complete the
same with reasonable diligence in accordance with the terms of this Agreement, City may, but shall have no obligation to, complete such Restoration at Developer's expense. Upon City's election to so
complete the Restoration, Developer immediately shall permit City to utilize all insurance proceeds which shall have been received by Developer, minus those amounts, if any, which Developer shall have
applied to the Restoration, and if such sums are insufficient to complete the Restoration, Developer, on demand, shall pay the deficiency to City. Each Restoration shall be done subject to the
provisions of this Agreement. 

 11.2 Use of Insurance Proceeds  

        (a)  Subject
to the conditions set forth below, all proceeds of casualty insurance on the improvements shall be made available to pay for the cost of Restoration if any part
of the improvements are damaged or destroyed in whole or in part by fire or other casualty. All such insurance proceeds, less the cost of collection, shall be paid into a trust account to be created
by an independent third party ("Insurance Trustee") to be chosen by (i) the First Mortgagee if the Casino Complex is encumbered by a First
Mortgage or (ii) Developer and City in the event there is no First Mortgagee, within ten (10) days of when the proceeds are to be made available. Nothing herein shall 

27

 

prohibit the First Mortgagee from acting as the Insurance Trustee. If Developer or City for whatever reason, cannot or will not participate in the selection of the Insurance Trustee, then the other
party shall select the Insurance Trustee. Developer shall name the Insurance Trustee appointed pursuant to this Section 11.2 as the sole loss
payee on Developer's casualty insurance. If those parties who participate in the selection process cannot agree on the selection of the Insurance Trustee, either City or Developer may apply to the
Circuit Court for the County for the appointment of a local bank having a capital surplus in excess of Two Hundred Million Dollars ($200,000,000) as the Insurance Trustee. The Insurance Trustee shall
hold the insurance proceeds in trust to be disbursed in stages to pay for the cost of the Restoration, as hereafter provided. The Insurance Trustee shall deposit the insurance proceeds in an interest
bearing account and any after tax interest earned thereon shall be added to the insurance proceeds. All fees and expenses of the Insurance Trustee shall be paid by Developer. 

        (b)  Promptly
following any damage or destruction to the improvements by fire, casualty or otherwise, Developer shall: 

	(1)
	give
written notice of such damage or destruction to City and each Mortgagee; and

	(2)
	deliver
an agreement by Developer to complete the Restoration in a reasonable amount of time plus periods of time as performance by Developer is prevented by Force Majeure events
(other than financial inability) after occurrence of the fire or casualty. 

        (c)  After
satisfaction of the conditions specified in paragraph (b) of this Section, insurance proceeds shall be paid to Developer, or City, as the case may be, from
time to time thereafter in installments, but not more frequently than once a month, upon application to be submitted from time to time by Developer to Insurance Trustee showing the cost of work,
labor, services, materials, fixtures and equipment incorporated in the Restoration, or incorporated therein since the last previous application, and paid for by Developer or then due and owing. The
amount of any installment to be paid to Developer shall be such proportion of the total insurance proceeds as the cost of work, labor, services, materials, fixtures and equipment theretofore
incorporated by Developer into the Restoration bears to the total estimated cost of the Restoration by Developer, less all payments heretofore made to Developer out of the insurance proceeds. Upon
completion of and payment for the Restoration by Developer, the balance of the insurance proceeds shall be paid over to Developer, subject to the rights of any Mortgagee named as an insured. If the
estimated cost of any Restoration exceeds the insurance proceeds received by Insurance Trustee, then prior to the commencement of such Restoration or thereafter if at any time that the cost to
complete the Restoration exceeds the unapplied portion of such insurance proceeds, Developer shall from time to time immediately deposit with Insurance Trustee cash funds in the amount of such excess,
to be held and applied by Insurance Trustee in accordance with the provisions hereof. If City elects to make the Restoration at Developer's expense, as provided in  Section 11.1, then, as provided
above with respect to Developer, Insurance Trustee shall pay over the insurance proceeds to City, from time to
time, upon City's application accompanied by a certificate containing the statements required under clauses (i), (ii) and (iii) of  Section 11.2(d)(1), to the extent not previously paid to
Developer pursuant to this  Section 11.2(c), and Developer shall pay to Insurance Trustee, on demand, any sums which City certifies to be an estimate of the amount necessary
to complete the Restoration, less the undisbursed insurance proceeds. 

        (d)  The
following shall be conditions precedent to each payment made to Developer as provided in Section 11.2: 

	(1)
	There
shall be submitted to Insurance Trustee the certificate of the architect stating (i) that the sum then requested to be withdrawn either has been paid by Developer or is
justly due to contractors, subcontractors, materialmen, engineers, architects or other Persons (whose names and addresses shall be stated) who have rendered or furnished work, labor, services,
materials, fixtures or equipment for the work and giving a brief description of such work, labor, services, materials, fixtures or equipment and the 

28

 

principal
subdivisions or categories thereof and the several amounts so paid or due to each of said Persons in respect thereof, and stating in reasonable detail the progress of the Restoration up to
the date of said certificate; (ii) that no part of such expenditures has been or is being made the basis, in any previous or then pending request, for the withdrawal of insurance money or has
been made out of the proceeds of insurance received by Developer; and (iii) that the balance of the insurance proceeds held by Insurance Trustee will be sufficient, upon completion of the
Restoration, to pay for the same in full, and stating in reasonable detail an estimate of the cost of such completion. 

	(2)
	There
shall be furnished to Insurance Trustee appropriate sworn statements and lien waivers (which comply with the mechanics' lien laws of the State) from all Persons receiving
payment under such draw.

	(3)
	There
shall be furnished to Insurance Trustee a title search, or a similar certificate of a title insurance company reasonably satisfactory to Insurance Trustee, showing that there
are no liens affecting the Casino Complex or any part thereof in connection with work done, authorized or incurred at or relating to the Casino Complex which had not been discharged of record, except
such as will be discharged upon payment of the amount then requested to be withdrawn. 

        (e)  Notwithstanding
anything in this Section 11.2 to the contrary, insurance proceeds for any fire or casualty of less
than Forty Million Dollars ($40,000,000) shall not be paid to the Insurance Trustee to be disbursed as provided in Section 11.2, but instead such
proceeds shall be paid by the insurer directly into a segregated account established by Developer for the purpose of funding the Restoration. This account is established as an assurance fund to
guarantee the completion of the Restoration. Developer retains the right to withdraw funds from this account to pay for the Restoration and to any excess funds in the account following completion of
the Restoration. Upon receipt of such proceeds in the account, Developer shall promptly undertake and complete the Restoration in accordance with this Article. 

 11.3 No Termination  

        No destruction of or damage to the improvements, or any portion thereof or property therein by fire, flood or other casualty, whether such damage or destruction
be partial or total, shall permit Developer to terminate this Agreement or relieve Developer from its obligations hereunder. 

 11.4 Condemnation  

        If a Major Condemnation occurs, this Agreement shall terminate, and no party to this Agreement shall have any claims, rights, obligations, or liabilities towards
any other party arising after termination, other than as provided for herein. If a Minor Condemnation occurs or the use or occupancy of the Casino Complex or any part thereof is temporarily
requisitioned by a civil or military governmental authority, then (a) this Agreement shall continue in full force and effect; (b) Developer shall promptly perform all Restoration
required in order to repair any physical damage to the Casino Complex caused by the Condemnation, and to restore the Casino Complex, to the extent reasonably practicable, to its condition immediately
before the Condemnation. If a Minor Condemnation occurs, any Proceeds in excess of Forty Million Dollars ($40,000,000) will be and are hereby, to the extent permitted by applicable law and agreed to
by the condemnor, assigned to and shall be withdrawn and paid into an escrow account to be created by an escrow agent (the "Escrow Agent") selected by
(i) the First
Mortgagee if the Casino Complex is encumbered by a First Mortgage; or (ii) Developer and City in the event there is no First Mortgagee, within ten (10) days of when the Proceeds are to
be made available. If Developer or City for whatever reason cannot or will not participate in the selection of the Escrow Agent, then the other party shall select the Escrow Agent. Nothing herein
shall prohibit the First Mortgagee from acting as the Escrow Agent. This transfer of the Proceeds, to the extent permitted by 

29

 

applicable law and agreed to by the condemnor, shall be self-operative and shall occur automatically upon the availability of the Proceeds from the Condemnation and such Proceeds shall be
payable into the escrow account on the naming of the Escrow Agent to be applied as provided in this Section 11.4. If City or Developer are unable
to agree on the selection of an Escrow Agent, either City or Developer may apply to the Circuit Court for the County for the appointment of a local bank having a capital surplus in excess of Two
Hundred Million Dollars ($200,000,000) as the Escrow Agent. The Escrow Agent shall deposit the Proceeds in an interest-bearing escrow account and any after tax interest earned thereon shall be added
to the Proceeds. The Escrow Agent shall disburse funds from the Escrow Account to pay the cost of the Restoration in accordance with the procedure described in  Section 11.2(b), (c) and (d). If
the cost of the Restoration exceeds the total amount of the Proceeds, Developer shall be responsible for
paying the excess cost. If the Proceeds exceed the cost of the Restoration, the Escrow Agent shall distribute the excess Proceeds, subject to the rights of the Mortgagees. Nothing contained in this  Section 11.4 shall impair or abrogate any rights of Developer against the condemning authority in connection with any Condemnation. All fees and
expenses of the Escrow Agent shall be paid by Developer. 

12. Indemnification  

 12.1 Indemnification by Developer  

        (a)  Developer
shall defend, indemnify and hold harmless City, EDC and each of their officers, agents and employees (collectively the
"Indemnitees" and individually an "Indemnitee") from and against any and all liabilities, losses,
damages, costs, expenses, claims, obligations, penalties and causes of action (including reasonable fees and expenses for attorneys, paralegals, expert witnesses and other consultants at the
prevailing market rate for such services) whether based upon negligence, strict liability, absolute liability, product liability, misrepresentation, contract, implied or express warranty or any other
principal of law, that are imposed upon, incurred by or asserted against Indemnitees or which Indemnitees may suffer or be required to pay and which arise out of or relate in any manner to any of the
following occurring prior to the Termination Date: (1) Developer's ownership, possession, use, condition or occupancy of the Casino Complex or any part thereof or any Improvement thereon;
(2) Developer's operation or management of the Casino Complex or any part thereof; (3) the performance of any labor or services or the furnishing of any material for or at the Casino
Complex or any part thereof by or on behalf of Developer or enforcement of any liens with respect thereto; (4) any personal injury, death or
property damage suffered or alleged to have been suffered by Developer (including Developer's employees, agents or servants), the Casino Complex Operator/Managers (including their employees, agents or
servants) or any third person as a result of any action or inaction of Developer; (5) any work or things whatsoever done in, or at the Casino Complex or any portion thereof, or
off-site pursuant to the terms of this Agreement by or on behalf of Developer; (6) the condition of any building, facilities or improvements at the Casino Complex or any
non-public street, curb or sidewalk at the Casino Complex, or any vaults, tunnels, malls, passageways or space therein; (7) any breach or default on the part of Developer for the
payment, performance or observance of any of its obligations under all agreements entered into by Developer or any of its Affiliates relating to the performance of services or supplying of materials
to the Casino Complex or any part thereof; (8) any act, omission or negligence of any tenant, or any of their respective agents, contractors, servants, employees, licensees or other tenants;
and (9) any claim by a third party relating to or arising from any failure of Developer to comply with all Governmental Requirements. In case any action or proceeding shall be brought against
any Indemnitee based upon any claim in respect of which Developer has agreed to indemnify any Indemnitee, Developer will upon notice from Indemnitee defend such action or proceeding on behalf of any
Indemnitee at Developer's sole cost and expense and will keep Indemnitee fully informed of all developments and proceedings in connection therewith and will furnish Indemnitee with copies of all
papers served or filed therein, irrespective of by whom served or filed. Developer shall defend such action with counsel it selects provided that such counsel is reasonably satisfactory to Indemnitee.
Such counsel shall not be deemed reasonably satisfactory to Indemnitee if 

30

 

counsel has: (i) a legally cognizable conflict of interest with respect to City or EDC; (ii) within the five (5) years immediately preceding such selection performed legal work
for City or EDC which in their respective reasonable judgment was inadequate; or (iii) frequently represented parties opposing City or EDC in prior litigation. Each Indemnitee shall have the
right, but not the obligation, at its own cost, to be represented in any such action by counsel of its own choosing. 

        (b)  Notwithstanding
anything to the contrary contained in Section 12.l(a) but further subject to  Section 12.1(c)below, Developer shall not indemnify and shall have
no responsibility to Indemnitees for: (i) any matter involving the
gross negligence or willful misconduct of any of the Indemnitees; (ii) any matter giving rise to any liability of any of the Indemnitees prior to the April 9, 1998, except for such
liabilities arising from acts or omissions undertaken by or at the request or insistence of Developer; (iii) any liability arising with respect to portions of the Casino Complex owned or under
the control of the City, the EDC, or any instrumentality or subdivision thereof prior to the date Developer acquired control of such property which arises from any acts or omissions of any Indemnitee
occurring prior to such date, provided, however, that this clause (iii) shall not apply to acts or omissions of any Indemnitee made at the request of the Developer prior to the date Developer
acquires control of such property; (iv) liability, if any, arising from the City's acquisition of or negotiations for the acquisition of the Riverfront Site or the actions or failures to act of
the City and/or EDC related thereto, including causes of actions relating to condemnation or inverse condemnation by or against the City; (v) any failure by the City or any subdivision or
instrumentality thereof to exercise its police and similar public safety powers with respect to the Casino Complex, but only to the extent Developer is not required to undertake or perform such
services pursuant to the terms of this Agreement; (vi) any breach by City or EDC of its obligations pursuant to this Agreement; or (vii) any liability arising with respect to any
off-site infrastructure improvements owned or under the control of the City which arise from acts or omissions of the City; or (viii) any liability arising as a consequence of the
City's ownership of all or any part of the Casino Complex prior to Developer's acquisition of same. 

13. Force Majeure  

 13.1 Definition of Force Majeure  

        An event of "Force Majeure" shall mean the following events or circumstances, to the extent that they delay or
otherwise adversely affect the performance beyond the reasonable control of Developer, or its agents and contractors, of their duties and obligations under this Agreement, or the performance by the
City or the EDC of their respective duties and obligations under this Agreement: 

        (a)  Strikes,
lockouts, labor disputes, inability to procure materials, failure of utilities, labor shortages or explosions; 

        (b)  Changes
in Governmental Requirements by any Governmental Authority, first effective after the date of this Agreement. 

        (c)  Acts
of God, tornadoes, hurricanes, floods, sinkholes, fires and other casualties, landslides, earthquakes, epidemics, quarantine, pestilence, and/or abnormal inclement
weather; 

        (d)  Acts
of a public enemy, acts of war, terrorism, effects of nuclear radiation, blockades, insurrections, riots, civil disturbances, or national or international
calamities; 

        (e)  Concealed
and unknown conditions of an unusual nature that are encountered below ground or in an existing structure; 

        (f)    Any
temporary restraining order, preliminary injunction or permanent injunction, or mandamus or similar order, unless based in whole or in part on the actions or failure
to act of Developer; 

        (g)  Inability
to have a Qualified Casino Complex Site Properly Zoned within 120 days after this Agreement has been executed by all parties and approved by City
Council; 

31

 

        (h)  Unreasonable
delay by the State in licensing Persons or any Component of the Casino Complex, to the extent necessary, under the Act, to the extent such delays are not
based in whole or in part on the actions or failure to act of such Persons; or 

        (i)    The
occurrence of any of the events referred to in clause (ii) of Section 2.5(c)

 13.2 Notice.  

        Developer shall promptly notify the City of the occurrence of an event of "Force Majeure" and describe in reasonable detail the nature of the event. 

 13.3 Excuse of Performance  

        Notwithstanding any other provision of this Agreement to the contrary, Developer shall be entitled to an adjustment in the time for or excuse of the performance
of any duty or obligation of Developer under this Agreement for Force Majeure events, but only for the number of days due to and/or resulting as a consequence of such causes and only to the extent
that such occurrences actually prevent or delay the performance of such duty or obligation or cause such performance to be commercially unreasonable. 

14. Miscellaneous  

 14.1 Notices  

        Notices shall be given as follows: 

        (a)  Any
notice, demand or other communication which any party may desire or may be required to give to any other party shall be in writing delivered by
(i) hand-delivery, (ii) a nationally recognized overnight courier, (iii) telecopy, or (iv) mail (but excluding electronic mail, i.e.,
"e-mail") addressed to a party at its address set forth below, or to such other address as the party to receive such notice may have
designated to all other parties by notice in accordance herewith: 

	If to City:	 	Mayor

City of Detroit

1126 Coleman A. Young Municipal Center

Two Woodward Avenue

Detroit, Michigan 48226

Telecopier No.: 313-224-4433
	

with copies to:	
 	

Corporation Counsel

City of Detroit

First National Building

660 Woodward Avenue

Suite 1650

Detroit, Michigan 48226

Telecopier No.: 313-224-5505
	

If to EDC:	
 	

The Economic Development Corporation

of the City of Detroit

211 West Fort Street

Suite 900

Detroit, Michigan 48226

Telecopier No.: 313-963-9786
	
 	
 	

 

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If to Developer:	
 	

MGM Grand Detroit, LLC.

c/o MGM MIRAGE

3600 Las Vegas Blvd. South

Las Vegas, Nevada 89109

Attn: John Redmond

Telecopier No. 702-693-7500
	

with copies to:	
 	

MGM MIRAGE

3600 Las Vegas Blvd. South

Las Vegas, Nevada 89109

Attn: Gary N. Jacobs, Esq.

Telecopier No. 702-693-7628
	

 	
 	

 

          (b)  Any
such notice, demand or communication shall be deemed delivered and effective upon the earlier to occur of actual delivery or, if delivered by telecopier, the same
day as confirmed by telecopier transmission or the first Business Day thereafter if telecopied on a non-Business Day. 

          (c)    If
any party to this Agreement has questions or concerns regarding this Agreement, interpreting this Agreement or performing obligations under this Agreement, such
party shall provide written notice of its question or concern to, as applicable, the City's Corporation Counsel at the address provided in  Section 14.1(a) and to the City of Detroit, Chief
Financial Officer, 1200 Coleman A. Young Municipal Center, Two Woodward Avenue, Detroit,
Michigan 48226, Telecopier No.                              ; or Gary N. Jacobs, at the address
provided in Section 14.1(a). 

 14.2 Non-Action or Failure to Observe Provisions of this Agreement  

        The failure of City, EDC or Developer to promptly insist upon strict performance of any term, covenant, condition or provision of this Agreement, or any Exhibit
hereto, or any other agreement contemplated hereby, shall not be deemed a waiver of any right or remedy that City, EDC or Developer may have, and shall not be deemed a waiver of a subsequent default
or nonperformance of such term, covenant, condition or provision. 

 14.3 Applicable Law and Construction  

        The laws of the State shall govern the validity, performance and enforcement of this Agreement. This Agreement has been negotiated by City, EDC and Developer, and
the Agreement, including the Exhibits, shall not be deemed to have been negotiated and prepared by City, EDC or Developer, but by each of them. 

 14.4 Submission to Jurisdiction  

        (a)  Each
party to this Agreement hereby submits to the jurisdiction of the Wayne County Circuit Court, the appellate courts of the State and to the jurisdiction of the
United States District Court for the Eastern District of the State, for the purposes of any suit, action or other proceeding arising out of or relating to this Agreement, and hereby agrees not to
assert by way of a motion as a defense or otherwise that such action is brought in an inconvenient forum or that the venue of such action is improper or that the subject matter thereof may not be
enforced in or by such courts. 

        (b)  If
at any time during the term of this Agreement, Developer is not a resident of the State or has no officer, director, employee, or agent thereof available for service
of process as a resident of the State, or if any permitted assignee thereof shall be a foreign corporation, partnership or other entity or shall have no officer, director, employee, or agent available
for service of process in the State, Developer or its assignee hereby designates the Secretary of State of the State, as its agent for the service of process in any court action between it and City
and/or EDC or arising out 

33

 

of or relating to this Agreement and such service shall be made as provided by the laws of the State for service upon a non-resident; provided,
however, that at the time of service on the Secretary of State, copy of such service shall be delivered to Developer in the manner provided in  Section 14.1. 

 14.5 Complete Agreement  

        This Agreement, and all the documents and agreements described or referred to herein, including the Exhibits hereto, constitute the full and complete agreement
between the parties hereto with respect to the subject matter hereof, and supersedes and controls in its entirety over any and all prior agreements (including the Amended Agreement), understandings,
representations and statements whether written or oral by each of the parties hereto. 

 14.6 Holidays  

        It is hereby agreed and declared that whenever a notice or performance under the terms of this Agreement is to be made or given on a day other than a Business
Day, it shall be postponed to the next following Business Day. 

 14.7 Exhibits  

        Each Exhibit referred to and attached to this Agreement is an essential part of this Agreement. 

 14.8 No Brokers  

        City, EDC and Developer hereby represent, agree and acknowledge that no real estate broker or other person is entitled to claim or to be paid a commission as a
result of the execution and delivery of this Agreement. 

 14.9 No Joint Venture  

        City and EDC on the one hand and Developer on the other, agree that nothing contained in this Agreement or any other documents executed in connection herewith is
intended or shall be construed to establish City and/or EDC and Developer as joint venturers or partners. 

 14.10 Governmental Authorities  

        Notwithstanding any other provisions of this Agreement, but subject to Section 2.5(b), any required
permitting, licensing or other regulatory approvals by any Governmental Authorities shall be subject to and undertaken in accordance with the established procedures and requirements of such authority,
as may be applicable, with respect to similar projects and in no event shall the Governmental Authority by virtue of any provision of this Agreement be obligated to take any actions concerning
regulatory approvals except through its established processes. 

 14.11 Technical Amendments  

        In the event that there are minor inaccuracies contained herein or any Exhibit attached hereto or any other agreement contemplated hereby, or the parties agree
that changes are required due to unforeseen events or circumstances, or technical matters arising during the term of this Agreement, which changes do not alter the substance of this Agreement, the
respective officers of City and EDC, and the officers of Developer, are authorized to approve such changes, and are authorized to execute any required instruments, to make and incorporate such
amendment or change to this Agreement or any Exhibit attached hereto or any other agreement contemplated hereby. 

34

 

 14.12 Unlawful Provisions Deemed Stricken  

        If this Agreement contains any unlawful provisions not an essential part of this Agreement and which shall not appear to have a controlling or material inducement
to the making thereof, such provisions shall be deemed of no effect and shall be deemed stricken from this Agreement without affecting the binding force of the remainder. In the event any provision of
this Agreement is capable of more than one interpretation, one which would render the provision invalid and one which would render the provision valid, the provision shall be interpreted so as to
render it valid. 

 14.13 No Liability for Approvals and Inspections  

        Except as may be otherwise expressly provided herein, no approval to be made by City under this Agreement or any inspection of the Work by City under this
Agreement, shall render City liable for failure to discover any defects or non-conformance with this Agreement, or a violation of or noncompliance with any federal, state or local statute,
regulation, ordinance or code. 

 14.14 Time of the Essence  

        All times, wherever specified herein for the performance by Developer of its obligations hereunder, are of the essence of this Agreement. 

 14.15 Captions.  

        The captions of this Agreement are for convenience of reference only and in no way define, limit or describe the scope or intent of this Agreement or in any way
affect this Agreement. 

 14.16 Arbitration  

        (a)  Matters Subject to Arbitration. In case of a dispute between Developer, on the one hand, and City on the other, with
respect to any disagreement under this Agreement other than a disagreement with respect to any of the following items, the parties shall in good faith attempt to resolve such dispute through informal
negotiations ("Negotiations"). In the event the parties reach a resolution during Negotiations such resolution shall be set forth in a writing signed by
all parties and may be enforced in any court of competent jurisdiction as if it were an arbitration award, pursuant to Section 14.16(j). In the
event either party determines in its sole discretion that a resolution cannot be reached during the Negotiations, such party may deliver to the other party written notice to terminate the Negotiations
and to refer the disagreement to binding arbitration consistent with the procedures set forth below. The decision of the arbitrator or arbitrators shall be final and binding upon the parties, and a
judgment may be rendered thereon in any court of competent jurisdiction. The matters not subject to arbitration hereunder are as follows: 

	(1)
	Any
dispute arising under Section 3.5; or

	(2)
	Any
dispute asserted by City which could give rise to an Event of Default to which a Mandatory Sale is a remedy available to City. 

        (b)  Commencement. The Negotiations shall be initiated by the claiming party serving written notice upon the other party
requesting commencement of informal negotiations. If either party determines that Negotiations should be terminated and arbitration shall be commenced, said party shall initiate arbitration
proceedings by serving written notice upon the other party requesting that the dispute be resolved by arbitration. All notices sent pursuant to this  Section 14.16, shall set forth a statement of
claim from the claiming party indicating with specificity the nature and extent of the matter in
dispute, together with the relief requested. 

35

 

        (c)  Situs of hearing. Any Negotiations and/or hearings held pursuant to this  Section 14.16 shall be conducted in Detroit, Michigan, or at such other place as may be
selected by mutual written agreement of the parties. 

        (d)  Selection of Arbitrator. 

	(1)
	Within
fifteen (15) days of being served with the statement of claim, the parties to the arbitration shall appear by counsel and meet to attempt to agree on a single arbitrator
to decide the subject claim. If the parties to the arbitration cannot agree on a single arbitrator within fifteen (15) days after the appearance of counsel, then the City and the Developer
shall each select an arbitrator, and the two
(2) arbitrators so selected shall together select a third (3rd) arbitrator within fifteen (15) days. The three (3) arbitrators so selected shall thereafter decide the matter in
dispute.

	(2)
	In
order to expedite any arbitration regarding construction matters, the parties shall, within ninety (90) days of the Closing, select an arbitrator or if the parties cannot
agree on a single arbitrator within such ninety (90) days, then each party shall select an arbitrator, and the two (2) arbitrators so selected shall select a third (3rd) arbitrator
within thirty (30) days, which arbitrator or panel shall be available to hear any dispute concerning construction matters arising under this Agreement during the period of construction of the
Casino Complex. With respect to any dispute concerning construction matters, the arbitrator or arbitrators selected shall be knowledgeable in construction disputes involving major projects.

	(3)
	With
respect to any dispute concerning gaming matters, the arbitrator or arbitrators selected shall be knowledgeable in casino gaming matters and selected in the same manner as set
forth in Section 14.16(d)(1).

	(4)
	If
the parties are unable to agree on a single arbitrator, and thereafter if either party fails to select an arbitrator within fifteen (15) days, then the arbitrator or
arbitrators shall be chosen, on the application of any party, by any court of competent jurisdiction. 

        (e)  Rules and Procedures. The statement of claim and all subsequent proceedings in the arbitration shall be governed by the
Commercial Arbitration Rules of the American Arbitration Association, as amended from time to time, but the arbitration itself shall not be administered by or proceed before the American Arbitration
Association. Any subject claim that a party has breached this Agreement by failing to pay any money when due and payable or has failed to perform a duty or obligation hereunder, which is presented in
accordance herewith, shall proceed expeditiously and, to the extent applicable, the Commercial Arbitration Rule's Expedited Procedures (other than as to appointment of the arbitrator) shall apply. 

        (f)    Modification of Rules and Procedures. The parties to any arbitration subject to this Agreement may on an ad hoc basis
stipulate in writing to modify the rules and procedures set forth herein that will govern the particular arbitration to which they are the parties; provided,
however, that no such stipulation and modification shall govern, or have any precedential value whatsoever for, any other or subsequent arbitration or shall affect in any way
the construction or interpretation of this Agreement. 

        (g)  Scope of Authority. Except as otherwise provided in this Agreement, including the provisions set forth in  Section 6, the Arbitrator or Arbitrators shall have the
authority to award any and all legal and equitable remedies that a court of this state
could order or grant, including specific performance of any obligation created under the Agreement, the issuance of an injunction or the imposition of sanctions for abuse or frustration of the
arbitration process. 

36

   
        (h)  Interim Relief. Either party may, without inconsistency with this Agreement, seek from a court of competent jurisdiction
any interim or provisional relief that may be necessary to protect the rights or property of that party and to preserve the status quo, pending the establishment of the arbitral tribunal. If a party
is successful in achieving such interim or provisional relief, the arbitral tribunal, once established, is authorized to: (x) continue such relief pending the arbitral tribunal's determination
of the merits of the controversy; (y) modify such relief as deemed equitable by the Arbitrator(s) pending the arbitral tribunal's determination of the merits of the controversy; or
(z) immediately terminate such relief and proceed with a resolution of merits of the controversy. 

        (i)    Costs of Arbitration. The costs of the arbitrator shall be split equally by the parties to an arbitration, but the
arbitrator shall provide in the award that if City is the prevailing party, the City shall recover its share of such costs as well as its reasonable attorneys' fees and other costs from Developer. If
Developer is the prevailing party, Developer shall have no obligation to pay the attorney's fees and costs of City and Developer shall recover its share of costs and reasonable attorney's fees if and
only if the arbitrator finds that the claims of the City are frivolous and that City is subject to sanctions therefor. 

        (j)    Enforcement. If either party refuses to participate in arbitration of any dispute subject to arbitration under the terms
of this Agreement, a party may seek to compel arbitration in accordance herewith in any court of competent jurisdiction. If any party fails to comply with a final award or order of arbitration, a
party may seek an order from any court of competent jurisdiction confirming, vacating or modifying any such final arbitration award or order obtained in accordance with this Agreement and enforcing
any judgment upon such confirmed or modified award. 

        (k)  Parties Subject to Arbitration. This Section 14.16 is applicable
to disputes arising between Developer and the City regarding disputes, claims, questions, or disagreements arising out of or relating to each parties' rights, duties and/or obligations established
pursuant to this Agreement. Section 14.16 shall in no way limit the right of the City or its agencies, authorities and/or instrumentalities or
Developer to institute proceedings in any court of competent jurisdiction from disputes, claims, questions, or disagreements arising between Developer and the City or its agencies, authorities and/or
instrumentalities while the City or its agencies, authorities and/or instrumentalities are acting pursuant to their normal City functions such as, without limitation, disputes arising from the
permitting and/or inspection processes. 

        (l)    Confidentiality. Subject to applicable law, the parties and the arbitrator(s) agree to maintain the substance of any
proceedings hereunder in confidence. 

 14.17 Sunset Provision  

        (a)  The
obligations imposed on Developer by and under Section 3.13 shall lapse and be of no further force or effect
after April 9, 2033. 

        (b)  The
obligations imposed on Developer by and under Section 3.3 shall lapse and be of no further force or effect ten
(10) years after the Closing. 

 14.18 Compliance  

        Any provision that permits or requires a party to take action shall be deemed to permit or require, as the case may be, the party to cause the action to be taken. 

 14.19 Table of contents  

        The table of contents is for the purpose of convenience only and is not to be deemed or construed in any way as part of this Agreement or as supplemental thereto
or amendatory thereof. 

37

 

 14.20 Number and Gender  

        All terms used in this Agreement, regardless of the number or gender in which they are used, shall be deemed to include any other number and any gender as the
context may require. 

 14.21 Third Party Beneficiary  

        Except with respect to Section 14.28, there shall be no third party beneficiaries with respect to this
Agreement. 

 14.22 Cost of Investigation  

        If as a result of the Agreement, City or any of their directors or officers, the Mayor, or any City Council members, or any employee, agent, or representative of
City is required to be licensed or approved by the Board, one-third ( 1/3 ) of all reasonable costs of such licensing, approval or investigation shall be paid by Developer
within five (5) Business Days following receipt of a written request from City. 

 14.23 Attorneys' Fees  

        Developer shall pay all of City's and EDC's costs, charges and expenses, including court costs and attorneys' fees, incurred in enforcing Developer's obligations
under this Agreement or incurred by City or EDC in any action brought by Developer in which City or EDC is the prevailing party. If Developer is the prevailing party, Developer shall have no
obligation to pay the attorneys' fees and costs of City and/or EDC and Developer shall recover its share of costs and reasonable attorneys' fees if and only if the court finds that the claims of the
City and/or EDC are frivolous and that City and/or EDC are subject to sanctions. 

 14.24 Further Assurances  

        City and Developer will cooperate and work together in good faith to the extent reasonably necessary and commercially reasonable to accomplish the mutual intent
of the parties that the Casino Complex be successfully completed as expeditiously as is reasonably possible. 

 14.25 Estoppel Certificates  

        City shall, at any time and from time to time, upon not less than fifteen (15) Business Days prior written notice from any lender of Developer, execute and
deliver to any lender of Developer an estoppel certificate in the form attached hereto as Exhibit 14.25. 

 14.26 Consent For Certain Amendments  

        The City agrees that it will not amend or revise a development agreement of any other Detroit Casino Developer without first obtaining the consent of Developer
and all other Detroit Casino Developers if such amendment has the effect of: 

        (a)  permitting
a Casino Complex to locate in violation of Section 1.3(a); 

        (b)  permitting
a Casino Complex to have more than 100,000 square feet of gaming space; 

        (c)  amending
the Radius Restriction; 

        (d)  amending
the provisions regarding transfer of the Development Agreement or direct or indirect interests described in  Section 8; 

        (e)  altering
the manner in which Development Process Costs are paid among Developer and the other Detroit Casino Developers; and 

38

 

        (f)    eliminating
or materially modifying restrictions on matters having a material impact on the operations of Developer's Casino Complex. 

 14.27 Counterparts  

        This Agreement may be executed in counterparts, each of which shall be deemed to be an original document and together shall constitute one instrument. 

 14.28 Non-Involvement of Certain Parties  

        The parties acknowledge that neither Kirk Kerkorian nor Tracinda Corporation, individually or collectively, is a party to this Agreement or any agreement provided
for herein. Accordingly, the parties hereby agree that in the event (a) there is any alleged breach or default by any party under this Agreement or any agreement provided for herein, or
(b) any party has any claim arising from or relating to any such agreement, no party, nor any party claiming through such party, shall commence any proceedings or otherwise seek to impose any
liability whatsoever against Kirk Kerkorian or Tracinda Corporation by reason of such alleged breach, default or claim. Without limiting the foregoing, any reference to an "Affiliate" of Developer or
an "Affiliate" of Parent shall not be deemed to included either Kirk Kerkorian or Tracinda Corporation, or any parent or sister company or subsidiary of Tracinda Corporation, including without
limitation, Metro-Goldwyn-Mayer Studios, Inc and its parent, sister and subsidiary companies (except only for Parent and its direct subsidiaries). 

15. Definitions  

        The terms defined in this Section 15 shall have the meanings indicated for purposes of this Agreement.
Definitions which are expressed by reference to the singular or plural number of a term shall also apply to the other number of that term. Capitalized terms which are used primarily in a single
Section of this Agreement are defined in that Section. 

        (a)  "Additional Hotel Rooms" mean the difference between an eight hundred (800) room hotel Component and the number of
hotel rooms constructed at the Casino Complex by the date which is no more than thirty-six (36) months from the date Developer obtains the Construction Permits. 

        (b)  "Act" means the Michigan Gaming Control and Revenue Act, being Sections 432.101  et. seq. of the Michigan Compiled Laws, as
amended from time to time, together with all rules and
regulations issued in connection therewith or promulgated thereunder. 

        "Adjusted Gross Receipts" shall have the same meaning as given to such term in the Act. 

        (c)  "Affiliate" means a Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by,
or is under common Control with, another Person. For purposes of clarification, Affiliates of Developer include, without limitation, Parent Company and Partners Detroit, L.L.C., a Michigan limited
liability company. 

        (d)  "Agreement" means this Revised Development Agreement. 

        (e)  "Amended Agreement" means the Amended and Restated Development Agreement dated April 9, 1998, as amended by the
First Amendment dated June 25, 1998, the Second Amendment dated December, 1999, the Third Amendment dated November 30, 2000, the Fourth Amendment dated November 30, 2001, the
Fifth Amendment dated March    , 2002, the Sixth Amendment dated April    , 2002, the Seventh Amendment dated June 12, 2002 and the Eighth Amendment dated July 31,
2002 among the City, the EDC and Developer. 

        (f)    "Board" means the Michigan Gaming Control Board, or its successors. 

39

 

        (g)  "Boundaries" means that area within the City which is bounded on the south by Jefferson Avenue, on the east by Interstate
375, on the north by a line running from Interstate 375 along Interstate 75, Grand River Avenue and Sycamore Street to Trumbull Avenue, and on the west by Trumbull Avenue as extended to Jefferson
Avenue, including land which is outside of such area but contiguous thereto. 

        (h)  "Business Day" means all weekdays except Saturday and Sunday and those that are official legal holiday of the City, State
or the United States government. Unless specifically stated as "Business Days," a reference to "days" means calendar days. 

        (i)    "Casino" means any premises wherein gaming is conducted by Developer pursuant to this Agreement, and for purposes of  Section 12, any premises wherein gaming has
been conducted by Developer pursuant to this Agreement or the Amended Agreement, and includes all
buildings, improvements, equipment, and facilities used or maintained in connection with such gaming. 

        (j)    "Casino Complex" means the Casino and all buildings, restaurants, hotel structures, recreational or entertainment
facilities, restaurants or other dining facilities, bars and lounges, retail stores and other amenities that are connected with, or operated in such an integral manner as to form a part of the
same operation whether on the same tract of land or otherwise. 

        (k)  "Casino Component Manager/Operator" means the Person(s) engaged, hired and/or retained by Developer to manage and/or
operate one or more Components under a Casino Component Management Agreement. 

        (l)    "Casino Component Management Agreement" means any management agreement between Developer and a Casino Component
Manager/Operator pertaining to the management and/or operation of one or more Components. 

        (m)  "Casino Gaming Operations" means any gaming operations permitted under the Act and offered or conducted at the Casino
Complex. 

        (n)  "Casino License" means the license issued by the Board to operate the Casino and engage in Casino Gaming Operations. 

        (o)  "Casino Manager" means the Person engaged, hired or retained by Developer to manage and/or operate the Casino and the
Casino Gaming Operations. 

        (p)  "City" means the City of Detroit, a Michigan municipal corporation. 

        (q)  "City Council" means the City Council of the City. 

        (r)  "Closing Certificate" means the certificate to be delivered by Developer in the form as attached hereto as  Exhibit 15(r). 

        (s)  "Closing" means the date on which all of the conditions set forth in  Section 1.4 are satisfied and/or waived. 

        (t)    "Completion," "Completed" or "Substantial
Completion" means for the Casino Complex, the completion of the Work, as evidenced by the issuance of a temporary certificate of occupancy by the appropriate Governmental
Authority for all Components to which a certificate of occupancy would apply, and that the parking structure and not less than ninety percent (90%) of the gaming area, ninety percent (90%) of the
hotel rooms, and fifty percent (50%) of the retail floor space and fifty percent (50%) of the restaurant floor space are open to the public for their intended use (and/or in the case of the retail and
restaurant floor spaces, are completed as shells and available for leasing). 

        (u)  "Completion Date" means the date on which Completion occurs, which shall not be later than December 31, 2005,
subject to extension by reason of (i) Force Majeure, (ii) the Start Date being later 

40

 

than August 1, 2002, and/or (iii) delays on achieving Completion resulting from the City's failure or delay in issuing any of the Permits. 

        (v)  "Component" means, with respect to the Casino Complex, any of the following: the hotel; Casino; restaurants; meeting and
assembly space; ballroom; theater; retail space; entertainment and recreational facilities; parking; private bus; limousine and taxi parking and staging areas; the other facilities described on  Section G of Exhibit A; and such other facilities that may be added as Components by
amendment to this Agreement. 

        (w)  "Condemnation" means a taking of all or any part of the Casino Complex by eminent domain, condemnation, compulsory
acquisition or similar proceeding by a competent authority for a public or quasi-public use or purpose. 

        (x)  "Construction Permits" means those Permits relating to zoning, street vacation, onsite and offsite infrastructure
commitments and other approvals necessary to commence construction of the Casino Complex at a Qualified Casino Complex Site. 

        (y)  "Control(s)" or "Controlled" means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, as such terms are used by and
interpreted under federal securities laws, rules and regulations. 

        (z)  "Conveyance Agreement" means the Conveyance Agreement dated April 28, 1999 among the City, the EDC and Developer. 

        (aa)
"County" means Wayne County, Michigan. 

        (bb)
"Default Rate" means a rate of interest at all times equal to the greater of (i) the rate of interest announced from time to
time by Comerica Bank, or its successors ("Comerica"), at its City office, as its prime, reference or corporate base rate of interest, or if Comerica is
no longer in business in the City or no longer publishes a prime, reference or corporate base rate of interest, then the prime, reference or corporate base rate of interest announced from time to time
by such local bank having from time to time the largest capital surplus, plus four percent (4%) per annum or (ii) twelve percent (12%) per
annum, provided, however, the Default Rate shall not exceed the maximum rate allowed by applicable law. 

        (cc)
"Design Documents" means, collectively, as applicable, all engineering, architectural and construction documents for the design and
construction of the Casino Complex. 

        (dd)
"Detroit Based Business" is defined in Chapter 18 of the 1984 Detroit City Code. 

        (ee)
"Detroit Casino Complex" means any of the three casino complexes operated at any time by any of the Detroit Casino Developers. 

        (ff)
"Detroit Casino Developers" means any of Developer, Greektown Casino, L.L.C., a Michigan limited liability company, and Detroit
Entertainment, L.L.C., a Michigan limited liability company, and their successors in interest. 

        (gg)
"Detroit Resident Business" means any business with at least four employees which employs at least fifty-one percent
(51%) Detroit residents. An individual employee will be considered a Detroit resident once the business has presented proof of such individual's payment of the City of Detroit Income Tax in the
previous taxable year, or proof that the individual is now subject to payment of Detroit Income Tax due to his/her residence in the City of Detroit. 

        (hh)
"Developer" means MGM Grand Detroit, L.L.C., a Delaware limited liability company, or its successors or assigns as permitted
hereunder. 

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        (ii)
"Development Process Costs" means, to the extent not otherwise payable by Developer hereunder, the aggregate amount of any and all
costs and expenses in good faith paid, or incurred by, City and/or EDC to third parties, in connection with the Detroit Casino Complexes, beginning with the planning and preparation of the RFP/Q. 

        (jj)
"direct or indirect interest" means an interest in an entity held directly or an interest held indirectly through interests in one or
more intermediary entities connected through a chain of ownership to the entity in question, taking into account the dilutive effect of the interests of others in such intermediary entities. 

        (kk)
"EDC" means The Economic Development Corporation of the City of Detroit, a Michigan public body corporate. 

        (ll)
"Environmental Laws" means all federal, state and local statutes, ordinances, regulations and rules relating to environmental
quality, health, safety, contamination and clean-up, including the Clean Air Act, 42 U.S.C. Section 7401 et seq.; the Clean Water
Act, 33 U.S.C. Section 1251 et seq., and the Water Quality Act of 1987; the Federal Insecticide, Fungicide, and Rodenticide Act
("FIFRA"), 7 U.S.C. Section 136 et seq.; the Marine Protection, Research, and Sanctuaries Act, 33
U.S.C. Section 1401 et seq.; the National Environmental Policy Act, 42 U.S.C. Section 4321 et
seq.; the Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq.; the Resource Conservation and Recovery Act
("RCRA"), 42 U.S.C. Section 6901 et seq., as amended by the Hazardous and Solid Waste Amendments
of 1984; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; the Comprehensive Environmental Response, Compensation and Liability Act
("CERCLA"), 42 U.S.C. Section 9601 et seq., as amended by the Superfund Amendments and
Reauthorization Act, the Emergency Planning and Community Right-to-Know Act, and Radon Gas and Indoor Air Quality Research Act; the Toxic Substances Control Act
("TSCA"), 15 U.S.C. Section 2601 et seq.; the Federal Hazardous Materials Transportation Act, 49
U.S.C. Section 1801 et seq.; the Atomic Energy Act, 42 U.S.C. Section 2011 et seq.; the
Nuclear Waste Policy Act of 1982, 42 U.S.C. Section 10101 et seq.; and the Michigan Natural Resources and Environmental Protection Act
("NREPA"), MCL 324.3101-.21551, with implementing regulations and to the extent legally enforceable, guidelines. Environmental Laws shall
also include all state, regional, county, municipal and other local laws, regulations, rules and ordinances insofar as they purport to regulate human health, the environment or Hazardous Materials. 

        (mm)
"Equal Opportunity Employment Plan" means a voluntary plan for the employment of women and Minorities in the Casino Complex and in
the construction of the Casino Complex. 

        (nn)
"Event of Default" shall have the meaning ascribed to it in Section 6.1. 

        (oo)
"Financial Statements" means a balance sheet and related statements of income and cash flows of Developer. 

        (pp)
"Financing" means the act, process or an instance of obtaining funds for the Casino Complex, whether secured or unsecured, including
but not limited to (i) issuing securities; (ii) drawing upon any existing or new credit facility; or (iii) contributions to capital by any Person. 

        (qq)
"Finance Affiliate" means any Affiliate created to effectuate all or any portion of a Financing. 

        (rr)
"Final Completion" means for the Casino Complex, the completion of the Work, as evidenced by the issuance of a temporary certificate
of occupancy by the appropriate Governmental Authority for all Components to which a certificate of occupancy would apply, and that one hundred percent (100%) of the parking structure, gaming area,
hotel rooms, retail floor space and restaurant floor space are open to the public for their intended use (and/or in the case of the retail and restaurant floor spaces, are completed as shells and
available for leasing). 

        (ss)
"Final Completion Date" means the first anniversary of the Completion Date. 

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        (tt)
"Finish Work" refers to the finishes which create the internal and external appearance of the Casino Complex. 

        (uu)
"First Class Casino Complex Standards" means the standards of quality established and maintained on the date hereof at the MGM Grand
Hotel and Casino, Las Vegas, Nevada, taken as a whole. 

        (vv)
"First Mortgage" means the first priority Mortgage. 

        (ww)
"First Mortgagee" means the holder of the First Mortgage. 

	(xx)
	"Fiscal Year" means the fiscal year that ends on the last day of the fiscal year of Developer. The first Fiscal Year shall be the
period commencing on the Effective Date and ending on the last day of the fiscal year of Developer in which the Effective Date occurs. The term "Full Fiscal
Year" means any Fiscal Year containing not fewer than three hundred sixty-five (365) days. The partial Fiscal Year commencing after the end of the last Full
Fiscal Year and ending with the termination of this Agreement shall constitute a separate Fiscal Year. 

        (yy)
"Force Majeure" shall have the meaning ascribed to such term in Section 13.1. 

        (zz)
"GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession for use in the Unites States, which are acceptable to the circumstances as of the date of determination. 

        (aaa)
"Gaming Area" means the space on which Casino Gaming Operations occur. 

        (bbb)
"Gaming Authorities" means all agencies, authorities and instrumentalities of the City, State, or the United States, or any
subdivision thereof, having jurisdiction over the gaming or related activities at the Casino, including the Board, or their respective successors. 

        (ccc)
"Governmental Authority" or "Governmental Authorities" means any federal, state,
county or municipal governmental authority, including all executive, legislative, judicial and administrative departments and bodies thereof (including any Gaming Authority) having jurisdiction over
Developer and/or the Casino Complex. 

        (ddd)
"Governmental Requirements" means all laws, ordinances, statutes, executive orders, rules, zoning requirements and agreements of any
Governmental Authority that are applicable to the acquisition, remediation, renovation, demolition, development, construction and operation of the Casino Complex including all required permits,
approvals and any rules, guidelines or restrictions enacted or imposed by Governmental Authorities, but only to the extent that such laws, ordinances, statutes, executive orders, zoning requirements,
agreements, permits, approvals, rules, guidelines and restrictions are valid and binding on Developer and Developer would be required to comply with the same without regard to this Agreement. 

        (eee)
"Guaranty and Keep Well Agreement" means the Guaranty and Keep Well Agreement dated as of the Closing between the City and Parent
Company. 

        (fff)
"Hazardous Materials" means the following, including mixtures thereof: any hazardous substance, pollutant, contaminant, waste,
by-product, or constituent regulated under CERCLA; the Michigan Natural Resources and Environmental Protection Act, MCL 324.101-.21551; oil and petroleum products, natural gas
liquids, liquefied natural gas and synthetic gas usable for fuel; pesticides regulated under the FIFRA; asbestos and asbestos-containing materials, polychlorinated biphenyls and other substances
regulated under the TSCA; source material, special nuclear material, by-product material and any other radioactive materials or radioactive wastes, however produced, 

43

 

regulated under the Atomic Energy Act or the Nuclear Waste Policy Act; chemicals subject to the OSHA Hazard Communication Standard, 29 C.F.R. §1910.1200 et seq.; solid wastes whether or
not hazardous within the meaning of RCRA; and any other hazardous substance, pollutant or contaminant regulated under any other Environmental Law. 

        (ggg)
"including" and any variant or other form of such term means including but not limited to. 

        (hhh)
"Indemnity Agreement" means that certain indemnity agreement by and among the City, the Developer and the other Detroit Casino
Developers in the form previously agreed to by such parties. 

        (iii)
"Initial Hotel Component" shall have the meaning ascribed to it in  Section 2.2(c). 

        (jjj)
"JEPAB" Funding Obligation" shall mean the obligation of the City to fund the Two Million Dollars ($2,000,000) for the JEPAB
pursuant to Section 3.5(k). 

        (kkk)
"Loan Default" means an event of default or default or event or condition which, with respect to Developer or its Finance Affiliate
without further notice or passage of time, would entitle a mortgagee to exercise the right to foreclose upon, acquire, possess or obtain the appointment of a receiver or other similar trustee or
officer over all or a part of Developer's interest in the Development. 

        (lll)
"Local Partner(s)" means any Person who directly or indirectly through an entity or series of entities owns an interest in Partners
Detroit, L.L.C. 

        (mmm)
"Major Condemnation" means a Condemnation either (i) of the entire Casino Complex, or (ii) of a portion of the Casino
Complex if, as a result of the Condemnation, it would be imprudent or unreasonable to continue to operate the Casino Complex even after making all reasonable repairs and restorations. 

        (nnn)
"Manage" means to generate, manufacture, process, treat, store, use, re-use, refine, recycle, reclaim, blend or burn for
energy recovery, incinerate, accumulate speculatively, transport, transfer, dispose of or abandon Hazardous Materials. 

        (ooo)
"Mandatory Sale" shall have the meaning ascribed to it in Section 6.2(d). 

        (ppp)
"Mayor" means the duly elected Mayor of the City. 

        (qqq)
"Memorandum of Agreement" shall mean a memorandum of this Agreement in recordable form and otherwise satisfactory in form and
substance to City, EDC and Developer in the exercise of reasonable judgment. 

        (rrr)
"MGM Grand Detroit Casino" means the Casino currently owned and operated by MGM Grand Detroit, L.L.C. and located at 1300 John C.
Lodge, Detroit, Michigan, 48226. 

        (sss)
"Minor Condemnation" means a Condemnation that is not a Major Condemnation. 

        (ttt)
"Minority" means that term as defined in Section 18-5-31 of Chapter 18 of the 1984 Detroit City Code. 

        (uuu)
"Minority Business Development Fund" shall mean a Forty Million Dollar ($40,000,000) fund established by the City from payments made
by the Detroit Casino Developers under their respective development agreements, aggregating Thirty Million Dollars ($30,000,000), and an additional Ten Million Dollars ($10,000,000) from other funds
received by the City from the Developers under their respective development agreements, to be used for Minority business development purposes and to satisfy the JEPAB Funding Obligation. 

	(vvv)
	"Mortgage" means a mortgage on all or any part of Developer's interest in the Casino Complex. 

44

 

        (www)
"Mortgagee" means the holder from time to time of a mortgage on all or any part of Developer's interest in the Casino Complex. 

        (xxx)
"Parent Company" means MGM MIRAGE, and its successors and assigns. 

        (yyy)
"Permitted Affiliate Payments" means payments made by Developer in the ordinary course of business. 

        (zzz)
"Permits" means all licenses, permits, approvals, consents and authorizations that Developer is required to obtain from any
Governmental Authority to perform and carry out its obligations under this Agreement including permits and licenses necessary to demolish, build, open, operate and occupy the Casino Complex. 

        (aaaa)
"Person" means an individual, a corporation, partnership, limited liability company, association or other entity, a trust, an
unincorporated organization, or a governmental unit, subdivision, agency or instrumentality. 

        (bbbb)
"Proceeds" means the compensation paid by the condemning authority to the City and/or Developer in connection with a Condemnation,
whether recovered through litigation or otherwise, but excluding any compensation paid in connection with a temporary taking. 

        (cccc)
"Properly Zoned" means SD-5 zoning has been approved by City Council. 

        (dddd)
"Publicly Traded Corporation" shall have the same meaning as defined in the Act. 

        (eeee)
"Qualified Casino Complex Site" means any site upon which Developer may construct and operate a Casino Complex provided that the
site is: 

	(1)
	located
either within the Boundaries or in another location approved in writing by the City and the other two Detroit Casino Developers;

	(2)
	Properly
Zoned;

	(3)
	Located
such that, absent the written consent of the City and the other two Casino Developers (i) each property line of Developer's Casino Complex is at least
one-third mile from the property lines of the Casino Complexes of the other two Detroit Casino Developers, and (ii) there is no sharing with any other Detroit Casino developer of ay
Casino Complex facilities. If two (2) prospective sites have property lines which are within one-third (1/3) mile of each other, the first site to be acquired shall
be a permitted site for the Casino Complex to the exclusion of the other. 

        (In
other words, Developer may locate or relocate its Casino Complex outside of the Boundaries or share facilities with the casino complex of another Detroit Casino Developer or locate
within one-third mile of another Detroit Casino Developer's casino complex with the prior written consent of the City and the other two Detroit Casino Developers.) 

        (ffff)
"Radius" means the geographic area encompassed by a circle having a radius of one hundred fifty (150) miles and the
intersection of Woodward and State Fair as its center. 

        (gggg)
"Railroad Property" means all real property owned by Jefferson Holdings, L.L.C., a Michigan limited liability company, which was
acquired from Riverfront Holdings, Inc. and Grand Trunk Western Railroad Incorporated. 

        (hhhh)
"Restricted Party" has the meaning set forth in Section 3.3 (Radius
Restriction). 

	(iiii)
	"RFP/Q" means the Phase I and Phase II Request for Proposals and Qualifications issued by the City in
connection with the land-based casino development project for the City. 

45

 

        (jjjj)
"Riverfront Bonds" means (i) those bonds issued by the City in the principal amount of $49,927,978.09 for the purpose of
funding the acquisition of the Riverfront Site and development and infrastructure costs, for which bonds Developer provided credit enhancement in the form of a letter of credit, and (ii) any
bonds the proceeds of which are used to retire Riverfront Bonds. 

        (kkkk)
"Riverfront Bond Fund" means the net proceeds of the Riverfront Bonds, plus all interest earned on such proceeds, minus the cost of
issuance and all disbursements. 

        (llll)
"Riverfront Site" means the Waterfront Reclamation and Casino Development 

        Project
Area. 

        (mmmm)
"SD-5 zoning" means the current SD-5 zoning modified appropriately to take into account each Detroit Casino
Developer's separate gaming site to be located within the Boundaries or in another location approved in writing by the City and the other two Detroit Casino Developers. 

        (nnnn)
"Small Business Concern" is defined in Section 18-5-1 of the 1984 Detroit City Code. 

        (oooo)
"State" means the State of Michigan. 

        (pppp)
"Suitable Lender" means: 

	(1)
	any
insurance company as defined in Section 2(13) of the Securities Act of 1933;

	(2)
	any
investment company registered under the Investment Company Act of 1940;

	(3)
	any
business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940;

	(4)
	any
small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

	(5)
	any
plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its
employees;

	(6)
	any
employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974;

	(7)
	any
trust fund whose trustee is a bank or trust company and whose participants are exclusively plans of the types identified in paragraph (E) or (F) of this section;

	(8)
	any
business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

	(9)
	any
investment adviser registered under the Investment Advisers Act of 1940;

	(10)
	any
dealer registered pursuant to Section 15 of the Securities and Exchange Act of 1934 or its Affiliate;

	(11)
	any
entity, all of the equity owners of which are, or all debt securities of which are owned by, (i) "qualified institutional buyers" as defined in Rule 144A under the
Securities Act of 1933, as amended (the "Securities Act") acting for their own account or the accounts of other qualified institutional
buyers, and/or (ii) parties who have acquired such equity interests or debt securities pursuant to Regulation S of the Securities Act or pursuant to a public offering registered pursuant
to the Securities Act;

	(12)
	any
bank as defined in Section 3(a)(2) of the Securities Act of 1933, any savings and loan association or other institution as referenced in Section 3(a)(5)(A) of the
Securities Act of 1933, or any foreign bank or savings and loan association or equivalent institution; 

46

 

	(13)
	any
investor or group of investors purchasing debt securities of Developer who are (i) purchasing such debt securities of Developer in any public offering registered pursuant
to the Securities Act; (ii) "qualified institutional buyers" (as defined in Rule 144A under the Securities Act); and/or (iii) purchasing such debt securities of Developer pursuant
to Regulation S of the Securities Act;

	(14)
	Parent
Company or any Affiliate of Parent Company;

	(15)
	any
Publicly Traded Corporation whose securities are traded on a national exchange or are included for quotation on the NASDAQ Stock Market; and

	(16)
	any
other lender approved by City in the exercise of its reasonable judgment. 

        (qqqq)
"Termination Date" means the date that this Agreement is terminated as provided in this Agreement. 

        (rrrr)
"Transfer" means (i) any sale (including agreements to sell on an installment basis), assignment, transfer, pledge,
alienation, hypothecation, merger, consolidation, reorganization, liquidation, or any other disposition by operation of law or otherwise, and (ii) the creation or issuance of new or additional
interests in the ownership of any entity. 

        (ssss)
"Work" means site preparation work and/or construction of the improvements in accordance with the construction documents for the
Casino Complex and includes labor, materials and equipment to be furnished by a contractor or subcontractor. 

47

   
        IN WITNESS WHEREOF, the parties hereto have set their hands and had their seals affixed on the dates set forth after their respective
signatures. 

	 	 	 	CITY OF DETROIT, a municipal corporation
	

	

 	
 	

By:	

/s/  KWAME M. KILPATRICK      

	 	,2002	 	Its:	 
	
	 	 	 	

	 	 	 	 	 
	

 	

 	
 	

THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF DETROIT, a Michigan public body corporate
	

	

 	
 	

By:	

/s/  ART PAPAPANOS      

	 	,2002	 	Its:	Authorized Agent
	
	 	 	 	

	

	

 	
 	

By:	

/s/  BRIAN J. HOLDWICK      

	 	,2002	 	Its:	Authorized Agent
	
	 	 	 	

	

 	

 	
 	

 	

 
	 	 	 	MGM GRAND DETROIT, L.L.C., a Delaware

limited liability company
	

	

 	
 	

By:	

/s/  GARY N. JACOBS      

	 	,2002	 	Its:	Secretary
	
	 	 	 	

	

	

 	
 	

By:	

 
	 	 	 	 	

	 	,2002	 	Its:	Authorized Agent
	
	 	 	 	

48

QuickLinks

REVISED DEVELOPMENT AGREEMENT AMONG CITY OF DETROIT THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF DETROIT AND MGM GRAND DETROIT, L.L.C.ZIONS BANCORPORATION

to

J. P. MORGAN TRUST COMPANNY, N.A.,

as
Trustee

JUNIOR SUBORDINATED INDENTURE

Dated as of
                   ,     

 

 

 

ZIONS BANCORPORATION

Reconciliation and tie
between the Trust Indenture Act of 1939 (including cross-references to
provisions of Sections 310 to and including 317 which, pursuant to
Section 318(c) of the Trust Indenture Act of 1939, as amended by the Trust
Reform Act of 1990, are a part of and govern the Indenture whether or not
physically contained therein) and the Junior Subordinated Indenture, dated as
of
                     ,
          .

	
  Trust Indenture Act
  Section

  	
   

  	
   

  	
   

  	
  Indenture 

  Section

  
	
  § 310

  	
   

  	
  (a) (1), (2) and (5)

  	
   

  	
  6.9

  
	
   

  	
   

  	
  (a) (3)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (a) (4)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.8

  
	
   

  	
   

  	
   

  	
   

  	
  6.10

  
	
   

  	
   

  	
  (c)

  	
   

  	
  Not Applicable

  
	
  § 311

  	
   

  	
  (a)

  	
   

  	
  6.13

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.13

  
	
   

  	
   

  	
  (b) (2)

  	
   

  	
  7.3(a)(2)

  
	
  § 312

  	
   

  	
  (a)

  	
   

  	
  7.1

  
	
   

  	
   

  	
   

  	
   

  	
  7.2(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.2(b)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.2(c)

  
	
  § 313

  	
   

  	
  (a)

  	
   

  	
  7.3(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  7.3(b)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  7.3(a), 7.3(b)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  7.3(c)

  
	
  § 314

  	
   

  	
  (a) (1), (2) and (3)

  	
   

  	
  7.4

  
	
   

  	
   

  	
  (a) (4)

  	
   

  	
  10.4

  
	
   

  	
   

  	
  (b)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (c) (1)

  	
   

  	
  1.2

  
	
   

  	
   

  	
  (c) (2)

  	
   

  	
  1.2

  
	
   

  	
   

  	
  (c) (3)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (d)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (e)

  	
   

  	
  1.2

  
	
   

  	
   

  	
  (f)

  	
   

  	
  Not Applicable

  
	
  § 315

  	
   

  	
  (a)

  	
   

  	
  6.1(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
  6.2

  
	
   

  	
   

  	
   

  	
   

  	
  7.3(a)

  
	
   

  	
   

  	
  (c)

  	
   

  	
  6.1(b)

  
	
   

  	
   

  	
  (d)

  	
   

  	
  6.1(c)

  
	
   

  	
   

  	
  (d) (1)

  	
   

  	
  6.1(a) (1)

  
	
   

  	
   

  	
  (d) (2)

  	
   

  	
  6.1(c) (2)

  
	
   

  	
   

  	
  (d) (3)

  	
   

  	
  6.1(c) (3)

  
	
   

  	
   

  	
  (e)

  	
   

  	
  5.14

  
	
  § 316

  	
   

  	
  (a)

  	
   

  	
  1.1

  
	
   

  	
   

  	
  (a) (1) (A)

  	
   

  	
  5.12

  
	
   

  	
   

  	
  (a) (1) (B)

  	
   

  	
  5.13

  
	
   

  	
   

  	
  (a) (2)

  	
   

  	
  Not Applicable

  
	
   

  	
   

  	
  (b)

  	
   

  	
  5.8

  
	
   

  	
   

  	
  (c)

  	
   

  	
  1.4(f)

  
	
  § 317

  	
   

  	
  (a) (1)

  	
   

  	
  5.3

  

 

 

	
   

  	
   

  	
  (a) (2)

  	
   

  	
  5.4

  
	
   

  	
   

  	
  (b)

  	
   

  	
  10.3

  
	
  § 318

  	
   

  	
  (a)

  	
   

  	
  1.7

  
	
   

  	
   

  	
   

  	
   

  	
   

  

Note: This reconciliation
and tie shall not, for any purpose, be deemed to be a part of the Junior
Subordinated Indenture.

 

 

 

	
  ARTICLE I

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL
  APPLICATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
   

  	
   

  
	
  Section 1.2.

  	
   

  	
  Compliance Certificate and Opinions

  	
   

  	
   

  
	
  Section 1.3.

  	
   

  	
  Forms of Documents Delivered to Trustee

  	
   

  	
   

  
	
  Section 1.4.

  	
   

  	
  Acts of Holders

  	
   

  	
   

  
	
  Section 1.5.

  	
   

  	
  Notices, Etc. to Trustee and Corporation

  	
   

  	
   

  
	
  Section 1.6.

  	
   

  	
  Notice to Holders; Waiver

  	
   

  	
   

  
	
  Section 1.7.

  	
   

  	
  Conflict with Trust Indenture Act

  	
   

  	
   

  
	
  Section 1.8.

  	
   

  	
  Effect of Headings and Table of Contents

  	
   

  	
   

  
	
  Section 1.9.

  	
   

  	
  Successors and Assigns

  	
   

  	
   

  
	
  Section 1.10.

  	
   

  	
  Separability Clause

  	
   

  	
   

  
	
  Section 1.11.

  	
   

  	
  Benefits of Indenture

  	
   

  	
   

  
	
  Section 1.12.

  	
   

  	
  Governing Law

  	
   

  	
   

  
	
  Section 1.13.

  	
   

  	
  Non-Business Days

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITY FORMS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Forms Generally

  	
   

  	
   

  
	
  Section 2.2.

  	
   

  	
  Form of Face of Security

  	
   

  	
   

  
	
  Section 2.3.

  	
   

  	
  Form of Reverse of Security

  	
   

  	
   

  
	
  Section 2.4.

  	
   

  	
  Additional Provisions Required in Global
  Security

  	
   

  	
   

  
	
  Section 2.5.

  	
   

  	
  Form of Trustee’s Certificate of
  Authentication

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Title and Terms

  	
   

  	
   

  
	
  Section 3.2.

  	
   

  	
  Denominations

  	
   

  	
   

  
	
  Section 3.3.

  	
   

  	
  Execution, Authentication, Delivery and
  Dating

  	
   

  	
   

  
	
  Section 3.4.

  	
   

  	
  Temporary Securities

  	
   

  	
   

  
	
  Section 3.5.

  	
   

  	
  Global Securities

  	
   

  	
   

  
	
  Section 3.6.

  	
   

  	
  Registration, Transfer and Exchange
  Generally

  	
   

  	
   

  
	
  Section 3.7.

  	
   

  	
  Mutilated, Destroyed, Lost and Stolen
  Securities

  	
   

  	
   

  
	
  Section 3.8.

  	
   

  	
  Payment of Interest and Additional
  Interest; Interest Rights Preserved

  	
   

  	
   

  
	
  Section 3.9.

  	
   

  	
  Persons Deemed Owners

  	
   

  	
   

  
	
  Section 3.10.

  	
   

  	
  Cancellation

  	
   

  	
   

  
	
  Section 3.11.

  	
   

  	
  Computation of Interest

  	
   

  	
   

  
	
  Section 3.12.

  	
   

  	
  Deferrals of Interest Payment Dates

  	
   

  	
   

  
	
  Section 3.13.

  	
   

  	
  Right of Set-Off

  	
   

  	
   

  
	
  Section 3.14.

  	
   

  	
  Agreed Tax Treatment

  	
   

  	
   

  

 

 

i

 

	
  Section 3.15.

  	
   

  	
  Shortening or Extension of Stated
  Maturity

  	
   

  	
   

  
	
  Section 3.16.

  	
   

  	
  CUSIP Numbers

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Satisfaction and Discharge of Indenture

  	
   

  	
   

  
	
  Section 4.2.

  	
   

  	
  Application of Trust Money

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REMEDIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Events of Default

  	
   

  	
   

  
	
  Section 5.2.

  	
   

  	
  Acceleration of Maturity; Rescission and
  Annulment

  	
   

  	
   

  
	
  Section 5.3.

  	
   

  	
  Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
   

  	
   

  
	
  Section 5.4.

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
   

  
	
  Section 5.5.

  	
   

  	
  Trustee May Enforce Claim Without
  Possession of Securities

  	
   

  	
   

  
	
  Section 5.6.

  	
   

  	
  Application of Money Collected

  	
   

  	
   

  
	
  Section 5.7.

  	
   

  	
  Limitation on Suits

  	
   

  	
   

  
	
  Section 5.8.

  	
   

  	
  Unconditional Right of Holders to Receive
  Principal, Premium and Interest; Direct Action by Holders of Preferred
  Securities

  	
   

  	
   

  
	
  Section 5.9.

  	
   

  	
  Restoration of Rights and Remedies

  	
   

  	
   

  
	
  Section 5.10.

  	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
   

  
	
  Section 5.11.

  	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
   

  
	
  Section 5.12.

  	
   

  	
  Control by Holders

  	
   

  	
   

  
	
  Section 5.13.

  	
   

  	
  Waiver of Past Defaults

  	
   

  	
   

  
	
  Section 5.14.

  	
   

  	
  Undertaking for Costs

  	
   

  	
   

  
	
  Section 5.15.

  	
   

  	
  Waiver of Usury, Stay or Extension Laws

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Certain Duties and Responsibilities

  	
   

  	
   

  
	
  Section 6.2.

  	
   

  	
  Notice of Defaults

  	
   

  	
   

  
	
  Section 6.3.

  	
   

  	
  Certain Rights of Trustee

  	
   

  	
   

  
	
  Section 6.4.

  	
   

  	
  Not Responsible for Recitals or Issuance
  of Securities

  	
   

  	
   

  
	
  Section 6.5.

  	
   

  	
  May Hold Securities

  	
   

  	
   

  
	
  Section 6.6.

  	
   

  	
  Money Held in Trust

  	
   

  	
   

  
	
  Section 6.7.

  	
   

  	
  Compensation and Reimbursement

  	
   

  	
   

  
	
  Section 6.8.

  	
   

  	
  Disqualification; Conflicting Interests

  	
   

  	
   

  
	
  Section 6.9.

  	
   

  	
  Corporate Trustee Required; Eligibility

  	
   

  	
   

  
	
  Section 6.10.

  	
   

  	
  Resignation and Removal; Appointment of
  Successor

  	
   

  	
   

  
	
  Section 6.11.

  	
   

  	
  Acceptance of Appointment by Successor

  	
   

  	
   

  
	
  Section 6.12.

  	
   

  	
  Merger, Conversion, Consolidation or
  Succession to Business

  	
   

  	
   

  
	
  Section 6.13.

  	
   

  	
  Preferential Collection of Claims Against
  Corporation

  	
   

  	
   

  

 

 

ii

 

	
  Section 6.14.

  	
   

  	
  Appointment of Authenticating Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOLDER’S LISTS AND REPORTS BY TRUSTEE AND
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  Corporation to Furnish Trustee Names and
  Addresses of Holders

  	
   

  	
   

  
	
  Section 7.2.

  	
   

  	
  Preservation of Information,
  Communications to Holders

  	
   

  	
   

  
	
  Section 7.3.

  	
   

  	
  Reports by Trustee

  	
   

  	
   

  
	
  Section 7.4.

  	
   

  	
  Reports by Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONSOLIDATION, MERGER, CONVEYANCE,
  TRANSFER OR LEASE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
   

  	
  Corporation May Consolidate, Etc., Only on
  Certain Terms

  	
   

  	
   

  
	
  Section 8.2.

  	
   

  	
  Successor Corporation Substituted

  	
   

  	
   

  
	
  Section 8.3.

  	
   

  	
  Opinion of Counsel to be Given to the
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL INDENTURES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
   

  	
  Supplemental Indentures without Consent of
  Holders

  	
   

  	
   

  
	
  Section 9.2.

  	
   

  	
  Supplemental Indentures with Consent of
  Holders

  	
   

  	
   

  
	
  Section 9.3.

  	
   

  	
  Execution of Supplemental Indentures

  	
   

  	
   

  
	
  Section 9.4.

  	
   

  	
  Effect of Supplemental Indentures

  	
   

  	
   

  
	
  Section 9.5.

  	
   

  	
  Conformity with Trust Indenture Act

  	
   

  	
   

  
	
  Section 9.6.

  	
   

  	
  Reference in Securities to Supplemental
  Indentures

  	
   

  	
   

  
	
  Section 9.7.

  	
   

  	
  Notice of Supplemental Indentures

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Payment of Principal, Premium and
  Interest

  	
   

  	
   

  
	
  Section 10.2.

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
   

  
	
  Section 10.3.

  	
   

  	
  Money for Security Payments to be Held in
  Trust

  	
   

  	
   

  
	
  Section 10.4.

  	
   

  	
  Statement as to Compliance

  	
   

  	
   

  
	
  Section 10.5.

  	
   

  	
  Waiver of Certain Covenants

  	
   

  	
   

  
	
  Section 10.6.

  	
   

  	
  Additional Sums

  	
   

  	
   

  
	
  Section 10.7.

  	
   

  	
  Additional Covenants

  	
   

  	
   

  
	
  Section 10.8.

  	
   

  	
  Original Issue Discount

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION
  OF SECURITIES

  

 

 

iii

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
   

  	
  Applicability of This Article

  	
   

  	
   

  
	
  Section 11.2.

  	
   

  	
  Election to Redeem; Notice to Trustee

  	
   

  	
   

  
	
  Section 11.3.

  	
   

  	
  Selection of Securities to be Redeemed

  	
   

  	
   

  
	
  Section 11.4.

  	
   

  	
  Notice of Redemption

  	
   

  	
   

  
	
  Section 11.5.

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
   

  
	
  Section 11.6.

  	
   

  	
  Payment of Securities Called for
  Redemption

  	
   

  	
   

  
	
  Section 11.7.

  	
   

  	
  Right of Redemption of Securities
  Initially Issued to an Issuer Trust

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SINKING FUNDS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
   

  	
  Applicability of Article

  	
   

  	
   

  
	
  Section 12.2.

  	
   

  	
  Satisfaction of Sinking Fund Payments
  with Securities

  	
   

  	
   

  
	
  Section 12.3.

  	
   

  	
  Redemption of Securities for Sinking Fund

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBORDINATION OF SECURITIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 13.1.

  	
   

  	
  Securities Subordinate to Senior
  Indebtedness

  	
   

  	
   

  
	
  Section 13.2.

  	
   

  	
  No Payment When Senior Indebtedness in
  Default; Payment Over of Proceeds Upon Dissolution, Etc

  	
   

  	
   

  
	
  Section 13.3.

  	
   

  	
  Payment Permitted If No Default

  	
   

  	
   

  
	
  Section 13.4.

  	
   

  	
  Subrogation to Rights of Holders of
  Senior Indebtedness

  	
   

  	
   

  
	
  Section 13.5.

  	
   

  	
  Provisions Solely to Define Relative
  Rights

  	
   

  	
   

  
	
  Section 13.6.

  	
   

  	
  Trustee to Effectuate Subordination

  	
   

  	
   

  
	
  Section 13.7.

  	
   

  	
  No Waiver of Subordination Provisions

  	
   

  	
   

  
	
  Section 13.8.

  	
   

  	
  Notice to Trustee

  	
   

  	
   

  
	
  Section 13.9.

  	
   

  	
  Reliance on Judicial Order or Certificate
  of Liquidating Agent

  	
   

  	
   

  
	
  Section 13.10.

  	
   

  	
  Trustee Not Fiduciary for Holders of
  Senior Indebtedness

  	
   

  	
   

  
	
  Section 13.11.

  	
   

  	
  Rights of Trustee as Holder of Senior
  Indebtedness; Preservation of Trustee’s Rights

  	
   

  	
   

  
	
  Section 13.12.

  	
   

  	
  Article Applicable to Paying Agents

  	
   

  	
   

  
	
  Section 13.13.

  	
   

  	
  Certain Conversion or Exchanges Deemed
  Payment

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

iv

 

This JUNIOR SUBORDINATED INDENTURE, dated as of
                               ,
       , between ZIONS BANCORPORATION, a
Utah corporation (the “Corporation”),
having its principal office at One South Main Street, Suite 1134, Salt Lake
City, Utah 84111, and J. P. MORGAN TRUST COMPANY NATIONAL ASSOCIATION, NATIONAL
ASSOCIATION, as Trustee (the “Trustee”).

RECITALS OF THE CORPORATION

WHEREAS, the Corporation has duly authorized the
execution and delivery of this Indenture to provide for the issuance from time
to time of its unsecured junior subordinated debt securities in one or more
series (the “Securities”) of
substantially the tenor hereinafter provided, including Securities issued to
evidence loans made to the Corporation of the proceeds from the issuance from
time to time by one or more business trusts (each an “Issuer Trust”) of undivided preferred beneficial interests
in the assets of such Issuer Trusts (the “Preferred
Securities”) and undivided common beneficial interests in the assets
of such Issuer Trusts (the “Common
Securities” and, collectively with the Preferred Securities, the “Trust Securities”), and to provide the
terms and conditions upon which the Securities are to be authenticated, issued
and delivered; and

WHEREAS, all things necessary to make the
Securities, when executed by the Corporation and authenticated and delivered
hereunder and duly issued by the Corporation, the valid obligations of the
Corporation, and to make this Indenture a valid agreement of the Corporation,
in accordance with its terms, have been done;

NOW THEREFORE, THIS INDENTURE WITNESSETH:   for and in consideration of the
premises and the purchase of the Securities by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of any series thereof, as follows:

ARTICLE
I

DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION

Section 1.1.  Definitions.

For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

(1) The terms defined
in this Article have the meanings assigned to them in this Article, and include
the plural as well as the singular;

(2) All other
terms used herein that are defined in the Trust Indenture Act, either directly
or by reference therein, have the meanings assigned to them therein;

(3) The words
“include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”;

(4) All accounting
terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles, and the term
“generally accepted accounting principles” with respect to any computation
required or permitted hereunder shall mean such accounting principles which are
generally accepted at the date or time of such computation; provided that when two or more principles
are so generally accepted, it shall mean that set of principles consistent with
those in use by the Corporation;

 

1

 

(5) Whenever the
context may require, any gender shall be deemed to include the other;

(6) Unless the
context otherwise requires, any reference to an “Article” or a “Section” refers
to an Article or a Section, as the case may be, of this Indenture; and

(7) The words
“hereby”, “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.

“Act”
when used with respect to any Holder has the meaning specified in
Section 1.4.

“Additional
Interest” means the interest, if
any, that shall accrue on any interest on the Securities of any series the
payment of which has not been made on the applicable Interest Payment Date and
which shall accrue at the rate per annum specified or determined as specified
in such Security.

“Additional
Sums” has the meaning
specified in Section 10.6.

“Additional
Taxes” means any additional
taxes, duties and other governmental charges to which an Issuer Trust has
become subject from time to time as a result of a Tax Event.

“Administrative
Trustees” means, in respect of
any Issuer Trust, each Person identified as an “Administrative Trustee” in the
related Trust Agreement, solely in such Person’s capacity as Administrative
Trustee of such Issuer Trust under such Trust Agreement and not in such
Person’s individual capacity, or any successor administrative trustee appointed
as therein 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.

“Agent
Member” means any member of, or
participant in, the Depositary.

“Allocable Amounts,” when
used with respect to any Senior Subordinated Debt, means the amount necessary
to pay all principal (and premium, if any) and interest, if any, on such Senior
Subordinated Debt in full less, if applicable, any portion of such amount which
would have been paid to, and retained by, the holders of such Senior
Subordinated Debt (whether as a result of the receipt of payments by the
holders of such Senior Subordinated Debt from the Company or any other obligor
thereon or from any holders of, or trustee in respect of, other indebtedness
that is subordinate and junior in right of payment to such Senior Subordinated
Debt pursuant to any provision of such indebtedness for the payment over of
amounts received on account of such indebtedness to the holders of such Senior
Subordinated Debt) but for the fact that such Senior Subordinated Debt is
subordinate or junior in right of payment to trade accounts payable or accrued
liabilities arising in the ordinary course of business.

 

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

“Authenticating
Agent” means any Person
authorized by the Trustee pursuant to Section 6.14 to act on behalf of the
Trustee to authenticate Securities of one or more series.

 

2

 

“Bankruptcy
Code” means Title 11 of the
United States Code or any successor statute thereto, in each case as amended
from time to time.

“Board
of Directors” means the board of
directors of the Corporation or the Executive Committee of the board of
directors of the Corporation (or any other committee of the board of directors
of the Corporation performing similar functions) or a committee designated by
the board of directors of the Corporation (or such committee), comprised of two
or more members of the board of directors of the Corporation or officers of the
Corporation, or both.

“Board
Resolution” means a copy of a
resolution certified by the Secretary or an Assistant Secretary of the
Corporation to have been duly adopted by the Board of Directors, or officers of
the Corporation 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 Trustee.

“Business
Day” means any day other
than (i) a Saturday or Sunday, (ii) a day on which banking institutions in Salt
Lake City, Utah, San Francisco, California or The City of New York are
authorized or required by law or executive order to close, or (iii) a day on
which the Corporate Trust Office of the Trustee, or, with respect to the
Securities of a series initially issued to an Issuer Trust for so long as such
Securities are held by such Issuer Trust, the “Corporate Trust Office” (as
defined in the related Trust Agreement) of the Property Trustee under the
related Trust Agreement, is closed for business.

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

“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 on such date.

“Common
Securities” has the meaning
specified in the first recital of this Indenture.

“Common
Stock” means the common stock,
without par value, of the Corporation.

“Corporate
Trust Office” means the principal
office of the Trustee at which at any particular time its corporate trust
business shall be administered.

“corporation”
includes a corporation, association, company, limited liability company,
joint-stock company or business trust.

 

3

 

“Corporation”
means the Person named as the “Corporation” in the first paragraph of this
Indenture until a successor corporation shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Corporation” shall
mean such successor corporation.

“Corporation
Request” and “Corporation Order”
mean, respectively, the written request or order signed in the name of the
Corporation by its Chairman of the Board of Directors, its Vice Chairman of the
Board of Directors, its President or a Vice President, and by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to
the Trustee.

“Debt”
means, with respect to any Person, whether recourse is to all or a portion of
the assets of such Person and whether or not contingent and without
duplication, (i) every obligation of such Person for money borrowed; (ii) every
obligation of such Person evidenced by bonds, debentures, notes or other
similar instruments, including obligations incurred in connection with the
acquisition of property, assets or businesses; (iii) every reimbursement
obligation of such Person with respect to letters of credit, bankers’
acceptances or similar facilities issued for the account of such Person; (iv)
every obligation of such Person issued or assumed as the deferred purchase
price of property or services (but excluding trade accounts payable or accrued
liabilities arising in the ordinary course of business); (v) every capital
lease obligation of such Person; (vi) all indebtedness of such Person, whether incurred
on or prior to the date of this Indenture or thereafter incurred, for claims in
respect of derivative products, including interest rate, foreign exchange rate
and commodity forward contracts, options and swaps and similar arrangements;
and (vii) every obligation of the type referred to in clauses (i) through (vi)
of another Person and all dividends of another Person the payment of which, in
either case, such Person has guaranteed or is responsible or liable for,
directly or indirectly, as obligor or otherwise.

“Defaulted
Interest” has the meaning
specified in Section 3.8.

“Delaware
Trustee” means, with respect to
any Issuer Trust, the Person identified as the “Delaware Trustee” in the
related Trust Agreement, solely in its capacity as Delaware Trustee of such
Issuer Trust under such Trust Agreement and not in its individual capacity, or
its successor in interest in such capacity, or any successor Delaware Trustee
appointed as therein provided.

“Depositary”
means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated
as Depositary by the Corporation pursuant to Section 3.1 with respect to
such series (or any successor thereto).

“Discount
Security” means any security that
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 5.2.

“Distributions”
means, with respect to the Trust Securities issued by an Issuer Trust, amounts
payable in respect of such Trust Securities as provided in the related Trust
Agreement and referred to therein as “Distributions.”

“Dollar”
or “$” means the currency of
the United States of America that, as at the time of payment, is legal tender
for the payment of public and private debts.

“Event
of Default”, unless otherwise
specified with respect to a series of Securities as contemplated by
Section 3.1, has the meaning specified in Article V.

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

 

4

 

“Expiration
Date” has the meaning
specified in Section 1.4(f).

“Extension
Period” has the meaning
specified in Section 3.12.

“Global
Security” means a Security in the
form prescribed in Section 2.4 evidencing all or part of a series of
Securities, issued to the Depositary or its nominee for such series, and
registered in the name of such Depositary or its nominee.

“Guarantee”
means, with respect to the Trust
Securities issued by a Trust, the guarantee by the Corporation of Distributions
on such Trust Securities to the extent provided in the Guarantee Agreement.

“Guarantee
Agreement” means, with respect to
any Issuer Trust, the Guarantee Agreement executed by the Corporation for the
benefit of the Holders of the Preferred Securities issued by such Issuer Trust
as modified, amended or supplemented from time to time.

“Holder”
means a Person in whose name a Security is registered in the Securities
Register.

“Indenture”
means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms
of each particular series of Securities established as contemplated by
Section 3.1.

“Interest
Payment Date” means, as to each
series of Securities, the Stated Maturity of an installment of interest on such
Securities.

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

“Issuer
Trust” has the meaning
specified in the first recital of this Indenture.

“Junior
Subordinated Debt” means any obligation of
the Corporation to its creditors, whether now outstanding or subsequently
incurred, where the instrument creating or evidencing the obligation or
pursuant to which the obligation is outstanding provides that it is
subordinated and junior in right of payment to Senior Indebtedness pursuant to
subordination provisions substantially similar to those set forth in this
Indenture. Junior Subordinated Debt includes the Securities and the
Corporation’s obligations with respect to Zions Institutional Capital Trust A’s
8.536% Capital Securities due December 15, 2026, GB Capital Trust’s 10.25%
Capital Securities due January 15, 2027 and CSBI Capital Trust’s 11.75% Capital
Securities due June 6, 2027.

“Maturity”
when used with respect to any Security means the date on which the principal of
such Security or any installment of principal becomes due and payable as
therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise.

“Notice
of Default” means a written notice
of the kind specified in Section 5.1(3).

“Officers’
Certificate” means a certificate
signed by the Chairman of the Board, a Vice Chairman of the Board, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Corporation and delivered to the
Trustee.

“Opinion
of Counsel” means a written opinion
of counsel, who may be counsel for or an employee of the Corporation or any
Affiliate of the Corporation.

“Original
Issue Date” means the date of
issuance specified as such in each Security.

“Outstanding”
means, when used in reference to any Securities, as of the date of
determination, all Securities theretofore authenticated and delivered under
this Indenture, except:

(i) Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;

 

5

 

(ii)  Securities for whose
payment money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent in trust for the Holders of such Securities; and

(iii) Securities in substitution for or in lieu of which other
Securities have been authenticated and delivered or that have been paid
pursuant to Section 3.7, unless proof satisfactory to the Trustee is
presented that any such Securities are held by Holders in whose hands such
Securities are valid, binding and legal obligations of the Corporation;

provided, however, that in determining whether the
Holders of the requisite principal amount of Outstanding Securities have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder, Securities owned by the Corporation or any other obligor upon the
Securities or any Affiliate of the Corporation or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
that the Trustee knows to be so owned shall be so disregarded. Securities so
owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right
so to act with respect to such Securities and that the pledgee is not the
Corporation or any other obligor upon the Securities or any Affiliate of the
Corporation or such other obligor. Upon the written request of the Trustee, the
Corporation shall furnish to the Trustee promptly an Officers’ Certificate
listing and identifying all Securities, if any, known by the Corporation to be
owned or held by or for the account of the Corporation, or any other obligor on
the Securities or any Affiliate of the Corporation or such obligor, and subject
to the provisions of Section 6.1, the Trustee shall be entitled to accept
such Officers’ Certificate as conclusive evidence of the facts therein set
forth and of the fact that all Securities not listed therein are Outstanding
for the purpose of any such determination. Notwithstanding anything herein to
the contrary, Securities of any series initially issued to an Issuer Trust that
are owned by such Issuer Trust shall be deemed to be Outstanding
notwithstanding the ownership by the Corporation or an Affiliate of any beneficial
interest in such Issuer Trust.

“Paying
Agent” means the Trustee or
any Person authorized by the Corporation to pay the principal of (or premium,
if any) or interest on, or other amounts in respect of, any Securities on
behalf of the Corporation.

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

“Place
of Payment” means, with respect to
the Securities of any series, the place or places where the principal of (and
premium, if any) and interest on the Securities of such series are payable
pursuant to Section 3.1.

“Predecessor
Security” of any particular
Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by such particular Security. For the purposes of this
definition, any security authenticated and delivered under Section 3.7 in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

“Preferred
Securities” has the meaning
specified in the first recital of this Indenture.

“Proceeding”
has the meaning specified in Section 13.2.

 

6

 

“Property
Trustee” means, with respect to
any Issuer Trust, the Person identified as the “Property Trustee” in the
related Trust Agreement, solely in its capacity as Property Trustee of such
Issuer Trust under such Trust Agreement and not in its individual capacity, or
its successor in interest in such capacity, or any successor Property Trustee
appointed as therein provided.

“Redemption
Date” means, when used with
respect to any Security to be redeemed, the date fixed for such redemption by
or pursuant to this Indenture or the terms of such Security.

“Redemption
Price” means, when used with
respect to any Security to be redeemed, the price at which it is to be redeemed
pursuant to this Indenture.

“Regular
Record Date” for the interest
payable on any Interest Payment Date with respect to the Securities of a series
means, unless otherwise provided pursuant to Section 3.1 with respect to
Securities of such series, the date that is fifteen days next preceding such
Interest Payment Date (whether or not a Business Day).

“Responsible
Officer” means, when used with
respect to the Trustee, the president, any vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, any trust officer
or assistant trust officer, the controller or any assistant controller or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of his knowledge of and familiarity with the particular
subject.

“Rights
Plan” means a plan of the
Corporation providing for the issuance by the Corporation to all holders of its
Common Stock of rights entitling the holders thereof to subscribe for or
purchase shares of any class or series of capital stock of the Corporation
which rights (i) are deemed to be transferred with such shares of such Common
Stock, and (ii) are also issued in respect of future issuances of such Common
Stock, in each case until the occurrence of a specified event or events.

“Securities”
or “Security” means any debt
securities or debt security, as the case may be, authenticated and delivered
under this Indenture.

“Securities
Act” means the Securities
Act of 1933 or 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 3.6.

“Senior
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 Corporation whether or not such claim for post-petition interest is
allowed in such proceeding), on Debt of the Corporation, whether incurred on or
prior to the date of this Indenture or thereafter incurred, unless, in the
instrument creating or evidencing the same or pursuant to which the same is
outstanding, it is provided that such obligations are not superior in right of
payment to the Securities or to other Debt that is pari passu with, or
subordinated to, the Securities, provided,
however, that Senior Indebtedness
shall not be deemed to include (a) any Debt of the Corporation that, when
incurred and without respect to any election under Section 1111(b) of the
Bankruptcy Reform Act of 1978, was without recourse to the Corporation, (b) any
Debt of the Corporation to any of its Subsidiaries, (c) Debt to any employee of
the Corporation, (d) any Securities, (e) trade accounts payable of the
Corporation, and (f) accrued liabilities arising in the ordinary course of
business of the Corporation.  Senior
Debt does not include Senior Subordinated Debt or Junior Subordinated Debt.

 

7

 

“Senior
Indebtedness” means (i) Senior Debt and (ii) the Allocable Amounts of
Senior Subordinated Debt.

“Senior 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 Corporation whether or not such claim for
post-petition interest is allowed in such proceeding), on Debt of the
Corporation, whether incurred on or prior to the date of this Indenture or
thereafter incurred, where the instrument creating or evidencing the obligation
or pursuant to which the obligation is outstanding, provides that it is
subordinate and junior in right of payment to Senior Debt pursuant to
subordination provisions substantially similar to those applicable to the
Corporation’s outstanding Senior Subordinated Debt.

 

“Special
Record Date” for the payment of any
Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.8.

“Stated
Maturity” means, when used with
respect to any Security or any installment of principal thereof (or premium, if
any) or interest (including any Additional Interest) thereon, the date
specified pursuant to the terms of such Security as the fixed date on which the
principal of such Security or such installment of principal (or premium, if
any) or interest (including any Additional Interest) is due and payable, as
such date may, in the case of the stated maturity of the principal on any security,
be shortened or extended as provided pursuant to the terms of such Security and
this Indenture and, in the case of any installment of interest, subject to the
deferral of any such date in the case of any Extension Period.

“Subsidiary”
means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by
the Corporation or by one or more other Subsidiaries, or by the Corporation and
one or more other Subsidiaries. For purposes of this definition, “voting stock”
means stock that ordinarily has voting power for the election of directors,
whether at all times or only so long as no senior class of stock has such
voting power by reason of any contingency.

“Successor
Security” of any particular
Security means every Security issued after, and evidencing all or a portion of
the same debt as that evidenced by, such particular Security; and, for the
purposes of this definition, any Security authenticated and delivered under
Section 3.7 in exchange for or in lieu of a mutilated, destroyed, lost or
stolen Security shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Security.

“Tax
Event” means the receipt by an
Issuer Trust of an Opinion of Counsel (as defined in the relevant Trust
Agreement) experienced in such matters to the effect that, as a result of any
amendment to, or change (including any announced proposed 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 or judicial decision interpreting or
applying such laws or regulations, whether or not the pronouncement or decision
is issued to or in connection with a proceeding involving the Corporation or
any Issuer Trust or is subject to review or appeal, which amendment or change,
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 any procedures or regulations, is
enacted, promulgated or announced or which pronouncement or decision is
announced on or after the date of issuance of the Preferred Securities of such
Issuer Trust, there is more than an insubstantial risk that (i) such Issuer
Trust is, or will be within 90 days of the delivery of such Opinion of Counsel,
subject to United States Federal income tax with respect to income received or
accrued on the corresponding series of Securities issued by the Corporation to
such Issuer Trust, (ii) interest payable by the Corporation on such
corresponding series of Securities is not, or within 90 days of the delivery of
such Opinion of Counsel will not be, deductible by the Corporation, in whole or
in part, 

 

8

 

for United States
Federal income tax purposes, or (iii) such Issuer Trust is, or will be within
90 days of the delivery of such Opinion of Counsel, subject to more than a de
minimis amount of other taxes, duties or other governmental charges.

“Trust
Agreement” means, with respect to
any Issuer Trust, the trust agreement or other governing instrument of such
Issuer Trust.

“Trustee”
means the Person named as the “Trustee” in the first paragraph of this
Indenture, solely in its capacity as such and not in its individual capacity,
until a successor Trustee shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Trustee” shall mean or include
each Person who is then a Trustee hereunder and, if at any time there is more
than one such Person, “Trustee” as used with respect to the Securities of any
series shall mean the Trustee with respect to Securities of that series.

“Trust
Indenture Act” means the Trust
Indenture Act of 1939 (15 U.S.C. 77aaa-77bbb), as amended and as in effect on
the date as of this Indenture, except as provided in Section 9.5.

“Trust
Securities” has the meaning
specified in the first recital of this Indenture.

“Vice
President” means, when used with
respect to the Corporation, any duly appointed vice president, whether or not
designated by a number or a word or words added before or after the title “vice
president.”

Section
1.2.  Compliance Certificate and Opinions.

Upon any application or request by the Corporation to the Trustee
to take any action under any provision of this Indenture, the Corporation shall
furnish to the Trustee an Officers’ Certificate stating that all conditions
precedent (including covenants compliance with which constitutes a condition
precedent), if any, provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent (including covenants
compliance with which constitutes a condition precedent), if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

Every certificate or
opinion with respect to compliance with
a condition or covenant provided for in this Indenture (other than the
certificates provided pursuant to Section 10.4) shall include:

(1) a statement by
each individual signing such certificate or opinion that such individual has
read such covenant or condition and the definitions herein relating thereto;

(2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions of such individual contained in such
certificate or opinion are based;

(3) a statement
that, in the opinion of such individual, 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

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

 

9

 

Section 1.3.  Forms of Documents
Delivered to Trustee.

In any case where several matters are required to be certified by,
or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an officer of the Corporation may be
based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to matters upon which his or her certificate or
opinion is based are erroneous. Any such certificate or Opinion of Counsel may
be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Corporation
stating that the information with respect to such factual matters is in the
possession of the Corporation, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions, or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

Section 1.4.  Acts of Holders.

(a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given to 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 herein otherwise expressly provided, such action shall become
effective when such instrument or instruments is or are delivered to the
Trustee, and, where it is hereby expressly required, to the Corporation. 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 Indenture and (subject to
Section 6.1) conclusive in favor of the Trustee and the Corporation, if
made in the manner provided in this Section.

(b) 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 the certificate of
any 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 or her the execution thereof. Where such execution is by a
Person acting in other than his or her individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his or her authority.

(c) The fact and
date of the execution by any Person of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other
manner that the Trustee deems sufficient and in accordance with such reasonable
rules as the Trustee may determine.

(d) The ownership
of Securities shall be proved by the Securities Register.

(e) Any request,
demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Security shall bind every future Holder of the same Security
and the Holder of every 

 

10

 

Security issued
upon the transfer thereof or in exchange therefor or in lieu thereof in respect
of anything done, omitted or suffered to be done by the Trustee or the
Corporation in reliance thereon, whether or not notation of such action is made
upon such Security.

(f) The
Corporation may set any day as a record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give, make or take
any request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given, made or taken by
Holders of Securities of such series, provided
that the Corporation may not set a record date for, and the provisions of this
paragraph shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next succeeding paragraph.
If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date, and no other
Holders, shall be entitled to take the relevant action, whether or not such
Holders remain Holders after such record date, provided
that no such action shall be effective hereunder unless taken on or prior to
the applicable Expiration Date (as defined below) by Holders of the requisite
principal amount of Outstanding Securities of such series on such record date.
Nothing in this paragraph shall be construed to prevent the Corporation from
setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be cancelled and of no
effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Corporation, at
its own expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Trustee in
writing and to each Holder of Securities of the relevant series in the manner
set forth in Section 1.6.

The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 5.2, (iii) any request to institute
proceedings referred to in Section 5.7(2), or (iv) any direction referred
to in Section 5.12, in each case with respect to Securities of such
series. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of such series on such record date, and no other
Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date, provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Trustee from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Outstanding Securities of the relevant series on the date
such action is taken. Promptly after any record date is set pursuant to this
paragraph, the Trustee, at the Corporation’s expense, shall cause notice of
such record date, the proposed action by Holders and the applicable Expiration
Date to be given to the Corporation in writing and to each Holder of Securities
of the relevant series in the manner set forth in Section 1.6.

With respect to any record date set pursuant to this
Section 1.04(f), the party that sets such record date may designate any
day as the “Expiration Date” and
from time to time may change the Expiration Date to any earlier or later day, provided that no such change shall be
effective unless notice of the proposed new Expiration Date is given to the
other party hereto in writing, and to each Holder of Securities of the relevant
series in the manner set forth in Section 1.6, on or prior to the existing
Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto that set such record
date shall be deemed to have initially designated the 

 

11

180th day after such record date as the
Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing,
no Expiration Date shall be later than the 180th day after the applicable
record date.

(g) Without
limiting the foregoing, a Holder entitled hereunder to take any action
hereunder with regard to any particular Security may do so with regard to all
or any part of the principal amount of such 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 principal amount.

Section 1.5.  Notices, Etc. to Trustee
and Corporation.

Any request,
demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given
or furnished to, or filed with,

(1) the Trustee by
any Holder, any holder of Preferred Securities or the Corporation shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee at its Corporate Trust office, or

(2) the
Corporation by the Trustee, any Holder or any holder of Preferred Securities
shall be sufficient for every purpose (except as otherwise provided in
Section 5.1) hereunder if in writing and mailed, first class, postage
prepaid, to the Corporation addressed to it at the address of its principal
office specified in the first paragraph of this instrument or at any other
address previously furnished in writing to the Trustee by the Corporation.

Section 1.6. 
Notice to Holders; Waiver.

Where this Indenture provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first class postage prepaid, to each Holder
affected by such event, at the address of such Holder as it appears in the
Securities Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. If, by reason of the
suspension of or irregularities in regular mail service or for any other
reason, it shall be impossible or impracticable to mail notice of any event to
Holders when said notice is required to be given pursuant to any provision of
this Indenture or of the relevant Securities, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice. In any case where notice to Holders is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders. Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

Section 1.7.  Conflict with Trust
Indenture Act.

If any provision of this Indenture limits, qualifies or conflicts
with the duties imposed by any of Sections 310 to 317, inclusive, of the Trust
Indenture Act through operation of Section 318(c) thereof, such imposed
duties shall control. If any provision of this Indenture modifies or excludes
any provision of the Trust Indenture Act which may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified
or to be excluded, as the case may be.

 

12

 

Section 1.8.  Effect of Headings and
Table of Contents.

The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.

Section 1.9.  Successors and Assigns.

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

Section 1.10.  Separability Clause.

If any provision in this Indenture or in the Securities 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 1.11.  Benefits of Indenture.

Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their
successors and assigns, the holders of Senior Indebtedness, the Holders of the
Securities and, to the extent expressly provided in Sections 5.1, 5.2, 5.8,
5.9, 5.11, 5.13, 9.1 and 9.2, the holders of Preferred Securities, any benefit
or any legal or equitable right, remedy or claim under this Indenture.

Section
1.12.  Governing
Law.

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

Section 1.13.  Non-Business Days.

If any Interest Payment Date, Redemption
Date or Stated Maturity of any Security shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or the Securities)
payment of interest or principal (and premium, if any) or other amounts in
respect of such Security need not be made on such date, but may be made on the
next succeeding Business Day (and no interest shall accrue in respect of the
amounts whose payment is so delayed for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be, until
such next succeeding Business Day) except that, if such Business Day falls in
the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day (in each case with the same force and effect
as if made on the Interest Payment Date or Redemption Date or at the Stated
Maturity).

ARTICLE II

SECURITY FORMS

Section 2.1.  Forms Generally.

The Securities of each series and the Trustee’s certificate of
authentication shall be in substantially the forms set forth in this Article,
or in such other form or forms as shall be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case
with such 

 

13

 

appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with applicable tax laws or the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such securities,
as evidenced by their execution of the Securities. If the form of Securities of
any series is established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Corporation and delivered to the
Trustee at or prior to the delivery of the Corporation Order contemplated by
Section 3.3 with respect to the authentication and delivery of such
Securities.

The Trustee’s certificates of authentication shall be
substantially in the form set forth in this Article.

The definitive Securities shall be typewritten, printed,
lithographed or engraved or produced by any combination of these methods, if
required by any securities exchange or automated quotation system on which the
Securities may be listed, on a steel engraved border or steel engraved borders
or may be produced in any other manner permitted by the rules of any securities
exchange or automated quotation system on which the Securities may be listed or
traded, all as determined by the officers executing such Securities, as
evidenced by their execution of such securities.

Section 2.2.  Form of Face of
Security.

ZIONS BANCORPORATION

[Title of Security]

No.              $

ZIONS BANCORPORATION, a corporation organized and existing under
the laws of the State of Utah (hereinafter called the “Corporation”, which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to
                            ,
or registered assigns, the principal sum of
                          
Dollars on
                               ,
[if the Security is a Global Security, then
insert, if applicable—, or such other principal amount represented
hereby as may be set forth in the records of the Securities Registrar hereinafter
referred to in accordance with the Indenture,] [; provided that the Corporation may, subject to certain
conditions set forth in Section 3.15 of the Indenture, [(i) shorten the
Stated Maturity of the principal of this Security to a date not earlier than
                   ,
and] [(ii) extend the Stated Maturity of the principal of this Security at any
time on one or more occasions, but in no event later than
                     ]],
in the circumstances described on the reverse hereof]. The Corporation further
promises to pay interest on said principal sum from
                      ,
          or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, [monthly] [quarterly] [semi-annually] [if
applicable, insert—(subject
to deferral as set forth herein)] in arrears on [insert applicable Interest Payment Dates] of each year,
commencing
                      ,        ,
at the rate of       % per annum, [if applicable, insert—together with
Additional Sums, if any, as provided in Section 10.6 of the Indenture]
until the principal hereof is paid or duly provided for or made available for
payment [if applicable, insert—; provided that any overdue principal,
premium or Additional Sums and any overdue installment of interest shall bear
Additional Interest at the rate of        %
per annum (to the extent that the payment of such interest shall be legally
enforceable), compounded [monthly] [quarterly] [semi-annually], from the dates
such amounts are due until they are paid or made available for payment, and
such interest shall be payable on demand]. The amount of interest payable for
any period less than a full interest period shall be computed on the basis of a
360-day year of twelve 30-day months and the actual days elapsed in a partial
month in such period. The amount of interest payable for any full interest
period shall be computed by dividing the applicable rate per annum by
[twelve/four/two]. The interest so 

 

14

 

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 [if
applicable, insert—, which shall be the
[                          or                          ]
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date]. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.

[If applicable, insert—
So long as no Event of Default has occurred and is continuing, the Corporation
shall have the right, at any time during the term of this Security, from time
to time to defer the payment of interest on this Security for up to [sixty], [twenty],
[ten]           consecutive
[monthly] [quarterly] [semi-annual] interest payment periods with respect to
each deferral period (each an “Extension
Period”) [if applicable, insert—,
during which Extension Periods the Corporation shall have the right to make
partial payments of interest on any Interest Payment Date, and] at the end of
which the Corporation shall pay all interest then accrued and unpaid including
any Additional Interest, as provided below; provided,
however, that no Extension Period
shall extend beyond the Stated Maturity of the principal of this Security [if Stated Maturity can be shortened or extended,
insert—, as then in effect,] and no such Extension Period may end on
a date other than an Interest Payment Date; and provided, further,
however, that during any such
Extension Period, the Corporation shall not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of the Corporation’s capital stock, or (ii) make any
payment of principal of or interest or premium, if any, on or repay, repurchase
or redeem any debt securities of the Corporation that rank pari passu in all respects with or junior
in interest to this Security (other than (a) repurchases, redemptions or other
acquisitions of shares of capital stock of the Corporation in connection with
any employment contract, benefit plan or other similar arrangement with or for
the benefit of any one or more employees, officers, directors or consultants,
in connection with a dividend reinvestment or shareholder stock purchase plan
or in connection with the issuance of capital stock of the Corporation (or
securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of an exchange or conversion of
any class or series of the Corporation’s capital stock (or any capital stock of
a Subsidiary of the Corporation) for any class or series of the Corporation’s
capital stock or of any class or series of the Corporation’s indebtedness for
any class or series of the Corporation’s capital stock, (c) the purchase of
fractional interests in shares of the Corporation’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged, (d) any declaration of a dividend in connection
with any Rights Plan, or the issuance of rights, stock or other property under
any Rights Plan, or the redemption or repurchase of rights pursuant thereto, or
(e) any dividend in the form of stock, warrants, options or other rights where
the dividend stock or the stock issuable upon exercise of such warrants,
options or other rights is the same stock as that on which the dividend is
being paid or ranks pari passu
with or junior to such stock). Prior to the termination of any such Extension
Period, the Corporation may further defer the payment of interest, provided that no Extension Period shall
exceed [sixty], [twenty], [ten]
         consecutive [monthly]
[quarterly] [semi-annual] interest payment periods, extend beyond the Stated
Maturity of the principal of this Security or end on a date other than an
Interest Payment Date. Upon the termination of any such Extension Period and
upon the payment of all accrued and unpaid interest and any Additional Interest
then due on any Interest Payment Date, the Corporation may elect to begin a new
Extension Period, subject to the above conditions. No interest shall be due and
payable during an 

 

15

 

Extension Period, except at the end
thereof, but each installment of interest that would otherwise have been due
and payable during such Extension shall bear Additional Interest (to the extent
that the payment of such interest shall be legally enforceable) at the rate of
        % per annum, compounded
[monthly] [quarterly] [semi-annually] and calculated as set forth in the first
paragraph of this Security, from the dates on which amounts would otherwise
have been due and payable until paid or made available for payment. The
Corporation shall give the Holder of this Security and the Trustee notice of
its election to begin any Extension Period at least one Business Day prior to
the next succeeding Interest Payment Date on which interest on this Security
would be payable but for such deferral [if
applicable, insert—or so long as such Securities are held by [—insert name of applicable Issuer Trust],
at least one Business Day prior to the earlier of (i) the next succeeding date
on which Distributions on the Preferred Securities of such Issuer Trust would
be payable but for such deferral, and (ii) the date on which the Property
Trustee and/or the Administrative Trustees of such Issuer Trust is required to give
notice to any securities exchange or other applicable self-regulatory
organization or to holders of such Preferred Securities of the record date or
the date such Distributions are payable, but in any event not later than one
Business Day prior to such record date].

Payment of the principal of (and premium, if any) and interest on
this Security will be made at the office or agency of the Corporation
maintained for that purpose in the [insert
Place of Payment], in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts [if applicable, insert—;
provided, however, that at the option of the
Corporation payment of interest may be made (i) by check mailed to the address
of the Person entitled thereto as such address shall appear in the Securities
Register, or (ii) by wire transfer in immediately available funds at such place
and to such account as may be designated 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, subordinate and junior in right of payment to the
prior payment in full of all Senior Indebtedness, and this Security is issued
subject to the provisions of the Indenture with respect thereto. Each Holder of
this Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take
such actions as may be necessary or appropriate to effectuate the subordination
so provided, and (c) appoints the Trustee his or her attorney-in-fact for any
and all such purposes. Each Holder hereof, by his or her acceptance hereof, waives
all notice of the acceptance of the subordination provisions contained herein
and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

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

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

 

16

 

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

Zions Bancorporation

By:
                                      

        Name:
        Title:

Attest:

                                               

[Secretary or Assistant Secretary]

Section 2.3.  Form of Reverse of Security.

This Security is one of a duly authorized issue of securities of
the Corporation (herein called the “Securities”),
issued and to be issued in one or more series under the Junior Subordinated
Indenture, dated as of
                     ,         (herein
called the “Indenture”), between
the Corporation and J. P. Morgan 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 Corporation, the Trustee, the holders of Senior
Indebtedness and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof [if applicable, insert—, limited in aggregate principal
amount to $        ].

All terms used in this Security that are defined in the Indenture
[if applicable, insert—or in the
Amended and Restated Trust Agreement, dated as of
                        ,
       (as modified, amended or supplemented
from time to time, the “Trust Agreement”),
relating to [—insert name of Issuer Trust]
(the “Issuer Trust”) among the
Corporation, as Depositor, the Trustees named therein and the Holders from time
to time of the Trust Securities issued pursuant thereto, shall have the
meanings assigned to them in the Indenture [if
applicable, insert— or the Trust Agreement, as the case may be].

[If applicable, insert—The
Corporation may at any time, at its option, on or after
                    ,        ,
and subject to the terms and conditions of Article XI of the Indenture, redeem
this Security in whole at any time or in part from time to time, [if applicable, insert—at a Redemption
Price equal to 100% of the principal amount hereof] [if applicable, insert—at the following Redemption Prices
(expressed as percentages of the principal amount hereof): If redeemed during
the 12-month period beginning
                         ,

	
  Year

  	
   

  	
  Redemption  

  Price

  
	
   

  	
   

  	
   

  

 

and thereafter at
a Redemption Price equal to 100% of the principal amount hereof], together, in
the case of any such redemption, with accrued interest [if applicable, insert—, including any
Additional Interest,] but excluding the date fixed for redemption.]

 

17

 

[If the Security is subject to
redemption of any kind, insert—In the event of redemption of this
Security in part only, a new Security or Securities of this series for the
unredeemed portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.]

[If applicable, insert—In
addition, upon the occurrence and during the continuation of a Tax Event or a
Capital Treatment Event in respect of the Issuer Trust, the Corporation may, at
its option, at any time within 90 days of the occurrence and during
continuation of such Tax Event or Capital Treatment Event, as the case may be,
redeem this Security, in whole but not in part, subject to the terms and
conditions of Article XI of the Indenture, at a redemption price equal to [insert formula].

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

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

[If the Security is not a
Discount Security, insert—As provided in and subject to the
provisions of the Indenture, if an Event of Default with respect to the
Securities of this series at the time Outstanding occurs and is continuing,
then and in every such case the Trustee or the Holders of not less than 25% in
aggregate principal amount of the Outstanding Securities of this series may
declare the principal amount of all the Securities of this series to be due and
payable immediately, by a notice in writing to the Corporation (and to the
Trustee if given by Holders) [if applicable,
insert—, provided
that, if upon an Event of Default, the Trustee or such Holders fail to declare
the principal of all the Outstanding Securities of this series to be
immediately due and payable, the holders of at least 25% in aggregate
Liquidation Amount of the Preferred Securities then Outstanding shall have the
right to make such declaration by a notice in writing to the Corporation and
the Trustee]; and upon any such declaration the principal amount of and the
accrued interest (including any Additional Interest) on all the Securities of
this series shall become immediately due and payable, provided that the payment of principal and
interest (including any Additional Interest) on such Securities shall remain
subordinated to the extent provided in Article XIII of the Indenture.]

[If the Security is a Discount
Security, insert—As provided in and subject to the provisions of the
Indenture, if an Event of Default with respect to the Securities of this series
at the time Outstanding occurs and is continuing, then and in every such case
the Trustee or the Holders of not less than 25% in aggregate principal amount
of the Outstanding Securities of this series may declare an amount of principal
of the Securities of this series to be due and payable immediately, by a notice
in writing to the Corporation (and to the Trustee if given by Holders) [if applicable, insert—, provided that, if upon an Event of
Default, the Trustee or such Holders fail to declare such principal amount of
the Outstanding Securities of this series to be immediately due and payable,
the holders of at least 25% in aggregate Liquidation Amount of the Preferred
Securities then Outstanding shall have the right to make such declaration by a
notice in writing to the Corporation and the Trustee]. The principal amount
payable upon 

 

18

 

such acceleration shall be equal to —insert formula for determining the amount].
Upon any such declaration, such amount of the principal of and the accrued
interest  (including any Additional
Interest) on all the Securities of this series shall become immediately due and
payable, provided that the payment
of such principal and interest (including any Additional Interest) on all the
Securities of this series shall remain subordinated to the extent provided in
Article XIII of the Indenture. Upon payment (i) of the amount of principal so
declared due and payable and (ii) of interest on any overdue principal, premium
and interest (in each case to the extent that the payment of such interest
shall be legally enforceable), all of the Corporation’s obligations in respect
of the payment of the principal of and premium and interest, if any, on this
Security shall terminate.]

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

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

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

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

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

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

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

Section 2.4.  Additional Provisions Required in Global Security.

Unless otherwise specified as contemplated by Section 3.1,
any Global Security issued hereunder shall, in addition to the provisions
contained in Sections 2.2 and 2.3, bear a legend in substantially the following
form:

 

19

 

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 OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

Section 2.5.  Form of Trustee’s Certificate of Authentication.

The Trustee’s certificates of authentication shall be in
substantially the following form:

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

Dated:                                         

J. P. MORGAN TRUST COMPANY NATIONAL

ASSOCIATION, NATIONAL ASSOCIATION,

as Trustee

By:                                                                        
                                Authorized officer

ARTICLE III

THE SECURITIES

Section 3.1.  Title and
Terms.

The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited.

The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to
Section 3.3, set forth or determined in the manner provided in an
Officers’ Certificate, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of a series:

(a) the title of
the securities of such series, which shall distinguish the Securities of the
series from all other Securities;

(b) the limit, if
any, upon the aggregate principal amount of the Securities of such series that
may be authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to
Section 3.4, 3.6, 3.7, 9.6 or 11.6 and except for any Securities that,
pursuant to Section 3.3, are deemed never to have been authenticated and
delivered hereunder); provided, however, that the authorized 

 

20

 

aggregate
principal amount of such series may be increased above such amount by a Board
Resolution to such effect;

(c) the Person to
whom any interest on a Security of the series shall be payable, if other than
the Person in whose name that security (or one or more Predecessor Securities)
is registered at the close of business on the Regular Record Date for such
interest;

(d) the Stated
Maturity or Maturities on which the principal of the Securities of such series
is payable or the method of determination thereof, and any dates on which or
circumstances under which, the Corporation shall have the right to extend or
shorten such Stated Maturity or Maturities;

(e) the rate or
rates, if any, or method of calculating the rate or rates, if any, at which the
Securities of such series shall bear interest, if any, the rate or rates or
method of calculating the rate or rates and extent to which Additional
Interest, if any, shall be payable in respect of any Securities of such series,
the date or dates from which any such interest or Additional Interest shall
accrue, the Interest Payment Dates on which such interest shall be payable, the
right, pursuant to Section 3.12 or as otherwise set forth therein, of the
Corporation to defer or extend an Interest Payment Date, and the Regular Record
Date for the interest payable on any Interest Payment Date or the method by
which any of the foregoing shall be determined;

(f) the place or
places where the principal of (and premium, if any) and interest (including any
Additional Interest) on the Securities of such series shall be payable, the
place or places where the Securities of such series may be presented for
registration of transfer or exchange, any restrictions that may be applicable
to any such transfer or exchange in addition to or in lieu of those set forth
herein, and the place or places where notices and demands to or upon the
Corporation in respect of the Securities of such series may be made;

(g) the period or
periods within or the date or dates on which, if any, the price or prices at
which and the terms and conditions upon which the Securities of such series may
be redeemed, in whole or in part, at the option of the Corporation, and if
other than by a Board Resolution, the manner in which any election by the Corporation
to redeem such Securities shall be evidenced;

(h) the obligation
or the right, if any, of the Corporation to redeem, repay or purchase the
Securities of such series pursuant to any sinking fund, amortization or
analogous provisions, or at the option of a Holder thereof, and the period or
periods within which, the price or prices at which, the currency or currencies
(including currency unit or units) in which and the other terms and conditions
upon which Securities of the series shall be redeemed, repaid or purchased, in
whole or in part, pursuant to such obligation;

(i) the
denominations in which any Securities of such series shall be issuable, if
other than denominations of $25 and any integral multiple thereof;

(j) if other than
Dollars, the currency or currencies (including any currency unit or units) in
which the principal of (and premium, if any) and interest and Additional
Interest, if any, on the Securities of the series shall be payable, or in which
the Securities of the series shall be denominated and the manner of determining
the equivalent thereof in Dollars for purposes of the definition of
Outstanding;

(k) the additions,
modifications or deletions, if any, in the Events of Default or covenants of
the Corporation set forth herein with respect to the Securities of such series;

 

21

 

(l) if other than
the principal amount thereof, the portion of the principal amount of Securities
of such series that shall be payable upon declaration of acceleration of the
Maturity thereof;

(m) if the
principal amount payable at the Stated Maturity of any Securities of the series
will not be determinable as of any one or more dates prior to the Stated
Maturity, the amount which shall be deemed to be the principal amount of such
Securities as of any such date for any purpose thereunder or hereunder,
including the principal amount thereof which shall be due and payable upon any
Maturity other than the Stated Maturity or which shall be deemed to be
Outstanding as of any date prior to the Stated Maturity (or, in any such case,
the manner in which such amount deemed to be the principal amount shall be
determined);

(n) the additions
or changes, if any, to this Indenture with respect to the Securities of such
series as shall be necessary to permit or facilitate the issuance of the
Securities of such series in bearer form, registrable or not registrable as to
principal, and with or without interest coupons;

(o) any index or
indices used to determine the amount of payments of principal of and premium,
if any, on the Securities of such series or the manner in which such amounts
will be determined;

(p) whether the
Securities of the series, or any portion thereof, shall initially be issuable
in the form of a temporary Global Security representing all or such portion of
the Securities of such series and provisions for the exchange of such temporary
Global Security for definitive Securities of such series;

(q) if applicable,
that any Securities of the series shall be issuable in whole or in part in the
form of one or more Global Securities and, in such case, the respective
Depositaries for such Global Securities, the form of any legend or legends that
shall be borne by any such Global Security in addition to or in lieu of that
set forth in Section 2.4 and any circumstances in addition to or in lieu
of those set forth in Section 3.6 in which any such Global Security may be
exchanged in whole or in part for Securities registered, and any transfer of
such Global Security in whole or in part may be registered, in the name or
names of Persons other than the Depositary for such Global Security or a
nominee thereof;

(r) the
appointment of any Paying Agent or agents for the Securities of such series;

(s) the terms of
any right to convert or exchange Securities of such series into any other
securities or property of the Corporation, and the additions or changes, if
any, to this Indenture with respect to the Securities of such series to permit
or facilitate such conversion or exchange;

(t) if such
Securities are to be issued to an Issuer Trust, the form or forms of the Trust
Agreement, Guarantee Agreement and Expense Agreement relating thereto;

(u) if other than
as set forth herein, the relative degree, if any, to which the Securities of
the series shall be senior to or be subordinated to other series of Securities
in right of payment, whether such other series of Securities are Outstanding or
not;

(v) any addition
to or change in the Events of Default which applies to any Securities of the
series and any change in the right of the Trustee or the requisite Holders of
such Securities to declare the principal amount thereof due and payable
pursuant to Section 5.2;

(w) any addition
to or change in the covenants set forth in Article X which applies to Securities
of the series; and

 

22

 

(x) any other
terms of the Securities of such series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by
Section 9.1(6)).

All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided herein or in
or pursuant to such Board Resolution and set forth, or determined in the manner
provided, in such Officers’ Certificate or in any indenture supplemental
hereto.

If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the Secretary or an Assistant Secretary of the
Corporation and delivered to the Trustee at or prior to the delivery of the
Officers’ Certificate setting forth the terms of the series.

The Securities shall be subordinated in right of payment to Senior
Indebtedness as provided in Article XIII.

Section 3.2.  Denominations.

The Securities of each series shall be in registered form without
coupons and shall be issuable in denominations of $25 and any integral multiple
thereof, unless otherwise specified as contemplated by Section 3.1.

Section 3.3.  Execution,
Authentication, Delivery and Dating.

The Securities shall be executed on behalf of the Corporation by
its Chairman of the Board, its Vice Chairman of the Board, its President or one
of its Vice Presidents, under its corporate seal reproduced or impressed
thereon and attested by its Secretary or one of its Assistant Secretaries. The
signature of any of these officers on the Securities may be manual or
facsimile.

Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Corporation shall
bind the Corporation, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities. At any
time and from time to time after the execution and delivery of this Indenture,
the Corporation may deliver Securities of any series executed by the
Corporation to the Trustee for authentication, together with a Corporation
Order for the authentication and delivery of such Securities, and the Trustee
in accordance with the Corporation Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established by or pursuant to one or more Board Resolutions as permitted by
Sections 2.1 and 3.1, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.1) shall be fully protected in relying upon, an Opinion of
Counsel stating,

(1) if the form of
such Securities has been established by or pursuant to Board Resolution as
permitted by Section 2.1, that such form has been established in
conformity with the provisions of this Indenture;

(2) if the terms
of such Securities have been established by or pursuant to Board Resolution as
permitted by Section 3.1, that such terms have been established in
conformity with the provisions of this Indenture;

 

23

 

(3) that such
Securities, when authenticated and delivered by the Trustee and issued by the
Corporation in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations of
the Corporation, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles; and

(4) that all laws
and requirements in respect of the execution and delivery by the Company of
such Securities have been complied with.

If such form or
terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this
Indenture will affect the Trustee’s own rights, duties or immunities under the
Securities and this Indenture or otherwise in a manner that is not reasonably
acceptable to the Trustee.

Notwithstanding the provisions of Section 3.1 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers’
Certificate otherwise required pursuant to Section 3.1 or the Corporation
Order and Opinion of Counsel otherwise required pursuant to such preceding
paragraph at or prior to the authentication of each Security of such series if
such documents are delivered at or prior to the authentication upon original
issuance of the first Security of such series to be issued.

Each Security shall be dated the date of its authentication.

No Security shall be entitled to any benefit under this Indenture
or be valid or obligatory for any purpose, unless there appears on such
Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by the manual signature of one of its authorized
officers, and such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and
delivered hereunder. Notwithstanding the foregoing, if any Security shall have
been authenticated and delivered hereunder but never issued and sold by the
Corporation, and the Corporation shall deliver such Security to the Trustee for
cancellation as provided in Section 3.10, for all purposes of this
Indenture such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.

Section 3.4.  Temporary
Securities.

Pending the preparation of definitive Securities of any series,
the Corporation may execute, and upon Corporation Order the Trustee shall
authenticate and deliver, temporary Securities that are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any denomination,
substantially of the tenor of the definitive Securities of such series in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities.

If temporary Securities of any series are issued, the Corporation
will cause definitive Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Securities, the
temporary Securities shall be exchangeable for definitive Securities upon
surrender of the temporary Securities at the office or agency of the
Corporation designated for that purpose without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities, the
Corporation shall execute and the Trustee shall authenticate and deliver in
exchange therefor one or more definitive Securities of the same series, of any
authorized denominations having the same Original Issue Date and Stated
Maturity and having the same terms as such temporary Securities. Until so
exchanged, the 

 

24

 

temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

Section 3.5.  Global Securities.

(a) Each Global
Security issued under this Indenture shall be registered in the name of the
Depositary designated by the Corporation for such Global Security or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a single Security for
all purposes of this Indenture.

(b)
Notwithstanding any other provision in this Indenture, no Global Security may
be exchanged in whole or in part for Securities registered, and no transfer of
a Global Security in whole or in part may be registered, in the name of any
Person other than the Depositary for such Global Security or a nominee thereof
unless (i) such Depositary advises the Trustee in writing that such Depositary
is no longer willing or able to properly discharge its responsibilities as
Depositary with respect to such Global Security, and the Corporation is unable
to locate a qualified successor, (ii) the Corporation executes and delivers to
the Trustee a Corporation Order stating that the Corporation elects to
terminate the book-entry system through the Depositary, or (iii) there shall
have occurred and be continuing an Event of Default.

(c) If any Global
Security is to be exchanged for other Securities or cancelled in whole, it
shall be surrendered by or on behalf of the Depositary or its nominee to the
Securities Registrar for exchange or cancellation as provided in this Article
III.  If any Global Security is to be
exchanged for other Securities or cancelled in part, or if another Security is
to be exchanged in whole or in part for a beneficial interest in any Global
Security, then either (i) such Global Security shall be so surrendered for
exchange or cancellation as provided in this Article III or (ii) the principal
amount thereof shall be reduced, subject to Section 3.5(b), or increased
by an amount equal to the portion thereof to be so exchanged or cancelled, or
equal to the principal amount of such other Security to be so exchanged for a
beneficial interest therein, as the case may be, by means of an appropriate
adjustment made on the records of the Securities Registrar, whereupon the
Trustee, in accordance with the Applicable 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 Security by
the Depositary, accompanied by registration instructions, the Trustee shall,
subject to Section 3.5(b) and as otherwise provided in this Article III,
authenticate and deliver any Securities issuable in exchange for such Global
Security (or any portion thereof) in accordance with the instructions of the Depositary.
The Trustee shall not be liable for any delay in delivery of such instructions
and may conclusively rely on, and shall be fully protected in relying on, such
instructions.

(d) Every Security
authenticated and delivered upon registration of transfer of, or in exchange
for or in lieu of, a Global Security or any portion thereof, whether pursuant
to this Article III, Section 9.6 or 11.6 or otherwise, shall be
authenticated and delivered in the form of, and shall be, a Global Security,
unless such Security is registered in the name of a Person other than the
Depositary for such Global Security or a nominee thereof.

(e) Securities
distributed to holders of Book-Entry Capital Securities (as defined in the
applicable Trust Agreement) upon the dissolution of an Issuer Trust shall be
distributed in the form of one or more Global Securities registered in the name
of a Depositary or its nominee, and deposited with the Securities Registrar, as
custodian for such Depositary, or with such Depositary, for credit by the
Depositary to the respective accounts of the beneficial owners of the
Securities represented thereby (or such other accounts as they may
direct).  Securities distributed to
holders of Preferred Securities other than Book-Entry Capital Securities upon
the dissolution of an Issuer Trust shall not be issued in the form of a Global
Security or any other form intended to facilitate book-entry trading in
beneficial interests in such Securities.

 

25

 

(f) The Depositary
or its nominee, as the registered owner of a Global Security, shall be the
Holder of such Global Security for all purposes under this Indenture and the
Securities, and owners of beneficial interests in a Global Security shall hold
such interests pursuant to the Applicable Procedures. Accordingly, any such
owner’s beneficial interest in a Global Security 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 Agent Members.  Neither the Trustee nor the Securities
Registrar shall have any liability in respect of any transfers effected by the
Depositary.

(g) The rights of
owners of beneficial interests in a Global Security 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 Agent Members.

Section 3.6.  Registration, Transfer
and Exchange Generally.

The Corporation shall cause to be kept at the Corporate Trust
Office of the Trustee a register in which, subject to such reasonable
regulations as it may prescribe, the Corporation shall provide for the
registration of Securities and of transfers of Securities. Such register is
herein sometimes referred to as the “Securities
Register.”  The Trustee is
hereby appointed “Securities Registrar”
for the purpose of registering Securities and transfers of Securities as herein
provided.

Upon surrender for registration of transfer of any Security at the
offices or agencies of the Corporation designated for that purpose the
Corporation shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Securities of the same series of any authorized denominations of like tenor and
aggregate principal amount.

At the option of the Holder, Securities may be exchanged for other
Securities of the same series of any authorized denominations, of like tenor
and aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency. Whenever any securities are so surrendered
for exchange, the Corporation shall execute, and the Trustee shall authenticate
and deliver, the Securities that the Holder making the exchange is entitled to
receive.

All Securities issued upon any transfer or exchange of Securities
shall be the valid obligations of the Corporation, evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such transfer or exchange.

Every Security presented or surrendered for transfer or exchange
shall (if so required by the Corporation or the Trustee) be duly endorsed, or
be accompanied by a written instrument of transfer in form satisfactory to the
Corporation and the Securities Registrar, duly executed by the Holder thereof
or such Holder’s attorney duly authorized in writing.

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

Neither the Corporation nor the Trustee shall be required,
pursuant to the provisions of this Section, (i) to issue, register the transfer
of or exchange any Security of any series during a period beginning at the
opening of business 15 days before the day of selection for redemption of
Securities of that series pursuant to Article XI 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 Security so selected for redemption in whole or
in part, except, in the case of any such Security to be redeemed in part, any
portion thereof not to be redeemed.

 

26

 

Section 3.7.  Mutilated, Destroyed,
Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee together
with such security or indemnity as may be required by the Corporation or the
Trustee to save each of them harmless, the Corporation shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of
the same series, of like tenor and aggregate principal amount, and bearing a
number not contemporaneously outstanding.

If there shall be delivered to the Corporation and to the Trustee
(i) evidence to their satisfaction of the destruction, loss or theft of any
Security, and (ii) such security or indemnity as may be required by them to
save each of them harmless, then, in the absence of notice to the Corporation
or the Trustee that such Security has been acquired by a bona fide purchaser,
the Corporation shall execute and upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series, of like tenor and aggregate
principal amount as such destroyed, lost or stolen Security, and bearing a
number not contemporaneously outstanding.

If any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Corporation in its discretion
may, instead of issuing a new Security, pay such Security.

Upon the issuance of any new Security under this Section, the
Corporation may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

Every new Security issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Corporation, whether or not the destroyed, lost
or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of the same series duly issued hereunder.

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

Section 3.8.  Payment of Interest and
Additional Interest; Interest Rights Preserved.

Interest and Additional Interest on any Security of any series
that is payable, and is punctually paid or duly provided for, on any Interest
Payment Date, shall be paid to the Person in whose name that Security (or one
or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest in respect of Securities of such series,
except that, unless otherwise provided in the Securities of such series,
interest and any Additional Interest payable on the Stated Maturity of the
principal of a Security shall be paid to the Person to whom principal is paid.
The initial payment of interest on any Security of any series that is issued
between a Regular Record Date and the related Interest Payment Date shall be
payable as provided in such Security or in the Board Resolution pursuant to
Section 3.1 with respect to the related series of Securities.  At the option of the Corporation, interest
on any series of Securities may be paid (i) by check mailed to the address of
the Person entitled thereto as it shall appear on the Securities Register of
such series or (ii) by wire transfer in immediately available funds at such
place and to such account as designated by the Person entitled thereto as
specified in the Securities Register of such series.

 

27

 

Any interest on any Security that is due and payable, but is not
timely paid or duly provided for, on any Interest Payment Date for Securities
of such series (herein called “Defaulted
Interest”), shall forthwith cease to be payable to the registered
Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Corporation, at its
election in each case, as provided in Clause (1) or (2) below:

(1) The
Corporation may elect to make payment of any Defaulted Interest to the Persons
in whose names the Securities of such series in respect of which interest is in
default (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 Corporation shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Security and the date of the proposed payment, and at the same
time the Corporation 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 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 in
this Clause provided. Thereupon the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest, which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Corporation of such
Special Record Date and, in the name and at the expense of the Corporation,
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 Holder of a Security of such series at the address of such Holder as it
appears in the Securities Register not less than 10 days prior to such Special
Record Date. The Trustee may, in its discretion, in the name and at the expense
of the Corporation, cause a similar notice to be published at least once in a
newspaper, customarily published in the English language on each Business Day
and of general circulation in the Borough of Manhattan, The City of New York,
but such publication shall not be a condition precedent to the establishment of
such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been mailed as aforesaid,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered on such Special Record Date and shall no longer be payable pursuant
to the following Clause (2).

(2) The
Corporation may make payment of any Defaulted Interest in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which the Securities of the series in respect of which interest is in default
may be listed and, upon such notice as may be required by such exchange (or by
the Trustee if the Securities are not listed), if, after notice given by the
Corporation to the Trustee of the proposed payment pursuant to this Clause,
such payment shall be deemed practicable by the Trustee for the purposes of
this Section 3.8.

Any interest on any Security which is deferred or extended pursuant
to Section 3.12 shall not be Defaulted Interest

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

Section 3.9.  Persons Deemed Owners.

The Corporation, the Trustee and any agent of the Corporation or
the Trustee shall treat the Person in whose name any Security is registered as
the owner of such Security for the purpose of receiving payment of principal of
and (subject to Section 3.8) any interest on such Security and for all 

 

28

 

other purposes whatsoever, whether or not
such Security be overdue, and neither the Corporation, the Trustee nor any
agent of the Corporation or the Trustee shall be affected by notice to the
contrary.

No holder of any beneficial interest in any Global Security held
on its behalf by a Depositary shall have any rights under this Indenture with
respect to such Global Security, and such Depositary may be treated by the
Corporation, the Trustee and any agent of the Corporation or the Trustee as the
owner of such Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein
shall prevent the Corporation, the Trustee or any agent of the Corporation or
the Trustee from giving effect to any written certification, proxy or other
authorization furnished by a Depositary or impair, as between a Depositary and
such holders of beneficial interests, the operation of customary practices
governing the exercise of the rights of the Depositary (or its nominee) as
Holder of any Security.

Section 3.10.  Cancellation.

All Securities surrendered for payment, redemption, transfer or
exchange shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee, and any such Securities and Securities surrendered
directly to the Trustee for any such purpose shall be promptly canceled by it.
The Corporation may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder that the
Corporation may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section, except as expressly permitted by this Indenture. All canceled
Securities shall be destroyed by the Trustee and the Trustee shall deliver to
the Corporation a certificate of such destruction.

Section 3.11.  Computation of Interest.

Except as otherwise specified as contemplated by Section 3.1
for Securities of any series, interest on the Securities of each series for any
partial 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 any partial month in
such period, and interest on the Securities of each series for a full period
shall be computed by dividing the rate per annum by the number of interest
periods that together constitute a full twelve months.

Section 3.12.  Deferrals of Interest Payment Dates.

If specified as contemplated by Section 2.1 or
Section 3.1 with respect to the Securities of a particular series, so long
as no Event of Default has occurred and is continuing, the Corporation shall
have the right, at any time during the term of such series, from time to time
to defer the payment of interest on such Securities for such period or periods
as may be specified as contemplated by Section 3.1 (each, an “Extension Period”), during which
Extension Periods the Corporation shall, if so specified as contemplated by
Section 3.1, have the right to make partial payments of interest on any
Interest Payment Date. No Extension Period shall end on a date other than an
Interest Payment Date. At the end of any such Extension Period, the Corporation
shall pay all interest then accrued and unpaid on the Securities (together with
Additional Interest thereon, if any, at the rate specified for the Securities
of such series to the extent permitted by applicable law); provided, however,
that no Extension Period shall extend beyond the Stated Maturity of the
principal of the Securities of such series; and provided  further,
however that during any such
Extension Period, the Corporation shall not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any of the Corporation’s capital stock, or (ii) make any
payment of principal of or interest or premium, if any, on or repay, repurchase
or redeem any debt securities of the Corporation that rank pari passu in all respects with or junior
in interest to the Securities of such series (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Corporation
in connection with any employment contract, 

 

29

 

benefit plan or other similar arrangement
with or for the benefit of any one or more employees, officers, directors or
consultants, in connection with a dividend reinvestment or shareholder stock
purchase plan or in connection with the issuance of capital stock of the
Corporation (or securities convertible into or exercisable for such capital
stock) as consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of an exchange or conversion of
any class or series of the Corporation’s capital stock (or any capital stock of
a Subsidiary of the Corporation) for any class or series of the Corporation’s
capital stock or of any class or series of the Corporation’s indebtedness for
any class or series of the Corporation’s capital stock, (c) the purchase of
fractional interests in shares of the Corporation’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged, (d) any declaration of a dividend in connection
with any Rights Plan, or the issuance of rights, stock or other property under
any Rights Plan, or the redemption or repurchase of rights pursuant thereto, or
(e) any dividend in the form of stock, warrants, options or other rights where
the dividend stock or the stock issuable upon exercise of such warrants,
options or other rights is the same stock as that on which the dividend is
being paid or ranks pari passu
with or junior to such stock). Prior to the termination of any such Extension
Period, the Corporation may further defer the payment of interest, provided that no Extension Period shall
exceed the period or periods specified in such Securities, extend beyond the
Stated Maturity of the principal of such Securities or end on a date other than
an Interest Payment Date. Upon the termination of any such Extension Period and
upon the payment of all accrued and unpaid interest and any Additional Interest
then due on any Interest Payment Date, the Corporation may elect to begin a new
Extension Period, subject to the above conditions. No interest 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 as and
to the extent as may be specified as contemplated by Section 3.1. The
Corporation shall give the Holders of the Securities of such series and the
Trustee notice of its election to begin any such Extension Period at least one
Business Day prior to the next succeeding Interest Payment Date on which
interest on Securities of such series would be payable but for such deferral
or, with respect to any Securities of a series issued to an Issuer Trust, so
long as any such Securities are held by such Issuer Trust, at least one
Business Day prior to the earlier of (i) the next succeeding date on which
Distributions on the Preferred Securities of such Issuer Trust would be payable
but for such deferral, and (ii) the date on which the Property Trustee of such
Issuer Trust is required to give notice to any securities exchange or other
applicable self-regulatory organization or to holders of such Preferred
Securities of the record date or the date such Distributions are payable, but
in no event later than one Business Day prior to such record date.

The Trustee shall promptly give notice of the Corporation’s
election to begin any such Extension Period to the Holders of the Outstanding
Securities of such series.

Section 3.13.  Right of Set-Off.

With respect to the Securities of a series initially issued to an
Issuer Trust, notwithstanding anything to the contrary herein, the Corporation
shall have the right to set off any payment it is otherwise required to make in
respect of any such Security to the extent the Corporation has theretofore
made, or is concurrently on the date of such payment making, a payment under
the Guarantee Agreement relating to such Security or to a holder of Preferred
Securities pursuant to an action undertaken under Section 5.8 of this
Indenture.

Section
3.14.  Agreed Tax Treatment.

Each Security issued hereunder shall provide that the Corporation
and, by its acceptance of a Security or a beneficial interest therein, the
Holder of, and any Person that acquires a beneficial interest 

 

30

 

in, such Security agree that for United
States Federal, state and local tax purposes it is intended that such Security
constitutes indebtedness.

Section 3.15.  Shortening or Extension of Stated Maturity.

If specified as contemplated by Section 2.1 or
Section 3.1 with respect to the Securities of a particular series, the
Corporation shall have the right to (i) shorten the Stated Maturity of the
principal of the Securities of such series at any time to any date not earlier
than the first date on which the Company has the right to redeem the Securities
of such series, and (ii) extend the Stated Maturity of the principal of the
Securities of such series at any time at its election for one or more periods,
but in no event to a date later than the 49th anniversary of the first Interest
Payment Date following the Original Issue Date of the Securities of such
series; provided that, if the Company elects to exercise its right to extend
the Stated Maturity of the principal of the Securities of such series pursuant
to clause (ii), above, at the time such election is made and at the time of
extension (A) the Corporation is not in bankruptcy, otherwise insolvent or in
liquidation, (B) the Corporation is not in default in the payment of any
interest or principal on such Securities, (C) if the Issuer Trust has not been
liquidated, such Issuer Trust is not in arrears on payments of Distributions on
the Preferred Securities issued by such Issuer Trust and no deferred
Distributions are accumulated, (D) such Securities are rated not less than BBB-
by S&P or Baa3 by Moody’s or the equivalent by any other nationally
recognized statistical rating organization and (E) after such extension, the
Securities shall not have a remaining term to maturity of more than 30 years.  In the event the Company elects to shorten
or extend the Stated Maturity of the Securities of such series, it shall give
notice to the Trustee, and the Trustee shall give notice of such shortening or
extension to the Holders, no less than 30 and no more than 60 days prior to the
effectiveness thereof.  The
Corporation’s right to shorten the Stated Maturity of the principal of the
Securities of such series pursuant to clause (i) above is subject to the
Corporation having received (A) prior approval of the Board of Governors of the
Federal Reserve System if required under applicable capital guidelines or
policies and (B) an opinion of nationally recognized independent counsel
experienced in such matters to the effect that after the shortening of maturity,
interest paid on the Securities will be deductible by the Corporation for
United States federal income tax purposes; if the Securities are issued to a
Trust, the holders of Capital Securities will not recognize income, gain or
loss for United States federal income tax purposes as a result of the
shortening of maturity, and will be taxed under United Stated federal income
tax law in the same amount, in the same manner and at the same times as would
have been the case if the shortening of maturity had not occurred; and the
shortening of maturity will not cause the Trust to be classified as other than
a grantor trust for United States federal income tax purposes.

Section 3.16.  CUSIP Numbers.

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

 

31

 

ARTICLE IV

SATISFACTION
AND DISCHARGE

Section 4.1.  Satisfaction and Discharge of Indenture.

This Indenture shall, upon Corporation Request, cease to be of
further effect (except as to any surviving rights of registration of transfer
or exchange of Securities herein expressly provided for and as otherwise
provided in this Section 4.1) and the Trustee, on demand of and at the expense
of the Corporation, shall execute proper instruments acknowledging satisfaction
and discharge of this Indenture, when

(1) either

(A)  all Securities
theretofore authenticated and delivered (other than (i) Securities that have
been destroyed, lost or stolen and that have been replaced or paid as provided
in Section 3.7 and (ii) Securities for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Corporation and
thereafter repaid to the Corporation or discharged from such trust, as provided
in Section 10.3) have been delivered to the Trustee for cancellation; or

(B) all such Securities not theretofore delivered to the Trustee
for cancellation

(i)                                     have
become due and payable, or

(ii)                                  will
become due and payable at their Stated Maturity within one year of the date of
deposit, or

(iii)                               are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Corporation,

and the
Corporation, in the case of subclause (B)(i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust
for such purpose an amount in the currency or currencies in which the
Securities of such series are payable sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal (and premium, if any) and interest (including
any Additional Interest) to the date of such deposit (in the case of Securities
that have become due and payable) or to the Stated Maturity or Redemption Date,
as the case may be;

(2) the
Corporation has paid or caused to be paid all other sums payable hereunder by
the Corporation; and

(3) the
Corporation has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture have been
complied with.

Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the
Corporation to the Trustee under Section 6.7, the obligations of the
Trustee to any Authenticating Agent under Section 6.14 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 4.2 and the
last paragraph of Section 10.3 shall survive.

 

32

 

Section 4.2.  Application of Trust Money.

Subject to the provisions of the last paragraph of
Section 10.3, all money deposited with the Trustee pursuant to
Section 4.1 shall be held in trust and applied by the Trustee, in
accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Corporation
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any) and interest
(including any Additional Interest) for the payment of which such money or
obligations have been deposited with or received by the Trustee.

ARTICLE V

REMEDIES

Section
5.1.  Events of Default.

“Event
of Default”, wherever used herein
with respect to the Securities of any series, 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) except as may be specified pursuant to
Section 3.1:

(1) default in the
payment of any interest upon any Security of that series, including any
Additional Interest in respect thereof, when it becomes due and payable, and
continuance of such default for a period of 30 days (subject to the deferral of
any due date in the case of an Extension Period); or

(2) default in the
payment of the principal of (or premium, if any, on) any Security of that
series at its Maturity; or

(3) failure on the
part of the Corporation duly to observe or perform any other of the covenants
or agreements on the part of the Corporation in the Securities of that series
or in this Indenture for a period of 90 days after the date on which written
notice of such failure, requiring the Corporation to remedy the same, shall
have been given to the Corporation by the Trustee by registered or certified
mail or to the Corporation and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Securities of that series; or

(4) the entry of a
decree or order by a court having jurisdiction in the premises adjudging the
Corporation a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Corporation under the Bankruptcy Code or any other similar applicable
Federal or State law, which decree or order shall have continued undischarged
and unstayed for a period of 60 days; or the entry of a decree or order of a
court having jurisdiction in the premises for the appointment of a receiver or
liquidator or trustee or assignee in bankruptcy or insolvency of the
Corporation or of its property, or for the winding up or liquidation of its affairs,
which decree or order shall have continued undischarged and unstayed for a
period of 60 days; or

(5) the
commencement by the Corporation of voluntary proceedings to be adjudicated a
bankrupt, or  consent by the Corporation
to the filing of a bankruptcy proceeding against it, or the filing by the
Corporation of a petition or answer or consent seeking reorganization under the
Bankruptcy Code or any other similar Federal or State law, or consent by the
Corporation to the filing of any such petition, or the consent by the
Corporation to the appointment of a receiver or liquidator or trustee or
assignee in bankruptcy or insolvency of it or of its property, or the making by
the Corporation of an assignment for 

 

33

 

the benefit of
creditors, or the admission by the Corporation in writing of its inability to
pay its debts generally as they become due; or

(6) any other
Event of Default provided with respect to Securities of that series.

Section 5.2.  Acceleration of Maturity; Rescission and Annulment.

If an Event of Default (other than an Event of Default specified
in Section 5.1(4) or 5.1(5)) 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 aggregate principal amount of
the Outstanding Securities of that series may declare the principal amount (or,
if the Securities of that series are Discount Securities, such portion of the
principal amount as may be specified in the terms of that series) of all the
Securities of that series to be due and payable immediately, by a notice in
writing to the Corporation (and to the Trustee if given by Holders), provided that, in the case of the
Securities of a series issued to an Issuer Trust, if, upon an Event of Default,
the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of such series fail to declare the principal of all the
Outstanding Securities of such series to be immediately due and payable, the
holders of at least 25% in aggregate Liquidation Amount (as defined in the
related Trust Agreement) of the related series of Preferred Securities issued
by such Issuer Trust then outstanding shall have the right to make such
declaration by a notice in writing to the Corporation and the Trustee; and upon
any such declaration such principal amount (or specified portion thereof) of
and the accrued interest (including any Additional Interest) on all the
Securities of such series shall become immediately due and payable. If an Event
of Default specified in Section 5.1(4) or 5.1(5) with respect to
Securities of any series at the time Outstanding occurs, the principal amount
of all the Securities of such series (or, if the Securities of such series are
Discount Securities, such portion of the principal amount of such Securities as
may be specified by the terms of that series) shall automatically, and without
any declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable. Payment of principal and interest (including any
Additional Interest) on such Securities shall remain subordinated to the extent
provided in Article XIII notwithstanding that such amount shall become
immediately due and payable as herein provided.

At any time after such a declaration of acceleration with respect
to Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in
this Article provided, the Holders of a majority in aggregate principal amount
of the Outstanding Securities of that series, by written notice to the
Corporation and the Trustee, may rescind and annul such declaration and its
consequences if:

(1) the
Corporation has paid or deposited with the Trustee a sum sufficient to pay:

(A)  all overdue installments of interest on all
Securities of such series,

(B) any accrued
Additional Interest on all Securities of such series,

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

(D) all sums paid
or advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel; and

 

34

 

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

In the case of Securities of a series initially issued to an
Issuer Trust, if the Holders of such Securities fail to annul such declaration
and waive such default, the holders of a majority in aggregate Liquidation
Amount (as defined in the related Trust Agreement) of the related series of
Preferred Securities issued by such Issuer Trust then outstanding shall also have
the right to rescind and annul such declaration and its consequences by written
notice to the Corporation and the Trustee, subject to the satisfaction of the
conditions set forth in Clauses (1) and (2) above of this Section 5.2.

No such rescission shall affect any subsequent default or impair
any right consequent thereon.

Section 5.3.  Collection of
Indebtedness and Suits for Enforcement by Trustee.

The Corporation covenants that if:

(1) default is
made in the payment of any installment of interest (including any Additional
Interest) on any Security of any series when such interest becomes due and
payable and such default continues for a period of 30 days, or

(2) default is
made in the payment of the principal of (and premium, if any, on) any Security
at the Maturity thereof,

the Corporation
will, upon demand of the Trustee, pay to the Trustee, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal, including any sinking fund payment or analogous
obligations (and premium, if any) and interest (including any Additional
Interest), and, in addition thereto, all amounts owing the Trustee under
Section 6.7.

If the Corporation fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, and may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Corporation or any other obligor upon such
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Corporation or any other
obligor upon the Securities, wherever situated.

If an Event of Default with respect to Securities of any series
occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of Securities of such
series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

Section 5.4.  Trustee May File Proofs
of Claim.

In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Corporation or any other obligor upon the Securities
or the property of the Corporation or of such other obligor or their creditors,

(a) the Trustee (irrespective of whether the principal of the
Securities of any series shall then be due and payable as therein expressed or
by declaration or otherwise and irrespective of 

 

35

 

whether the Trustee shall have made any demand on the Corporation
for the payment of overdue principal (and premium, if any) or interest
(including any Additional Interest)) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

(i) to file and
prove a claim for the whole amount of principal (and premium, if any) and
interest (including any Additional Interest) owing and unpaid in respect to the
Securities and to file such other papers or documents as may be necessary or
advisable and to take any and all actions as are authorized under the Trust
Indenture Act in order to have the claims of the Holders and any predecessor to
the Trustee under Section 6.7 allowed in any such judicial proceedings;
and

(ii) in
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same in accordance with Section 5.6; and

(b) 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 Trustee for
distribution in accordance with Section 5.6, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it and any predecessor Trustee under
Section 6.7.

Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or
other similar committee.

Section 5.5.  Trustee May Enforce
Claim Without Possession of Securities.

All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment
shall, subject to Article XIII, after provision for the payment of all the
amounts owing the Trustee and any predecessor Trustee under Section 6.7,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.

Section 5.6.  Application of Money
Collected.

Any money or property collected or to be applied by the Trustee
with respect to a series of Securities pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money or property on account of principal
(or premium, if any) or interest (including any Additional Interest), upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

FIRST: To the payment of all amounts due the Trustee and any
predecessor Trustee under Section 6.7;

SECOND: Subject to Article XIII, to the payment of the amounts
then due and unpaid upon Securities of such series for principal (and premium,
if any) and interest (including any Additional 

 

36

 

Interest) in respect of which or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such series
of Securities for principal (and premium, if any) and interest (including any
Additional Interest), respectively; and

THIRD: The balance, if any, to the Person or Persons entitled
thereto.

Section 5.7.  Limitation on Suits.

Subject to Section 5.8, no Holder of any Securities of any
series shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture or for the appointment of a receiver, assignee,
trustee, liquidator, sequestrator (or other similar official) or for any other
remedy hereunder, unless:

(1) such Holder
has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities of that series;

(2) the Holders of
not less than 25% in aggregate principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

(3) such Holder or
Holders have offered to the Trustee reasonable indemnity against the costs,
expenses and liabilities to be incurred in compliance with such request;

(4) the Trustee
for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and

(5) no direction
inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in aggregate principal amount
of the Outstanding Securities of that series;

it being
understood and intended that no one or more of such Holders shall have any
right in any manner whatever by virtue of, or by availing itself of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Securities, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders.

Section 5.8.  Unconditional Right of
Holders to Receive Principal, Premium and Interest; Direct Action by Holders of
Preferred Securities.

Notwithstanding any other provision in this Indenture, the Holder
of any Security of any series shall have the right, which is absolute and
unconditional, to receive payment of the principal of (and premium, if any) and
(subject to Sections 3.8 and 3.12) interest (including any Additional Interest)
on such Security on the respective Stated Maturities expressed in such Security
(or, in the case of redemption, on the Redemption Date) and to institute suit for
the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder. In the case of Securities of a series
issued to an Issuer Trust, any registered holder of the series of Preferred
Securities issued by such Issuer Trust shall have the right, upon the
occurrence of an Event of Default described in Section 5.1(1) or 5.1(2),
to institute a suit directly against the Corporation for enforcement of payment
to such holder of principal of (and premium, if any) and (subject to Sections
3.8 and 3.12) interest (including any Additional Interest) on the Securities
having a principal amount equal to the aggregate Liquidation Amount (as defined
in the related Trust Agreement) of such Preferred Securities held by such
holder.

 

37

 

Section 5.9.  Restoration of Rights
and Remedies.

If the Trustee, any Holder or any holder of Preferred Securities
issued by any Issuer Trust has instituted any proceeding to enforce any right
or remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee, such
Holder or such holder of Preferred Securities, then and in every such case the
Corporation, the Trustee, such Holders and such holder of Preferred Securities
shall, subject to any determination in such proceeding, be restored severally
and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Trustee, such Holder and such holder of Preferred
Securities shall continue as though no such proceeding had been instituted.

Section 5.10.  Rights and Remedies Cumulative.

Except as otherwise provided in the last paragraph of
Section 3.7, no right or remedy herein conferred upon or reserved to the
Trustee or the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

Section
5.11.  Delay or Omission
Not Waiver.

No delay or omission of the Trustee, any Holder of any Security
with respect to the Securities of the related Series or any holder of any
Capital Security to exercise any right or remedy accruing upon any Event of
Default with respect to the Securities of the related series shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein.

Every right and remedy given by this Article or by law to the
Trustee or to the Holders and the right and remedy given to the holders of
Preferred Securities by Section 5.8 may be exercised from time to time,
and as often as may be deemed expedient, by the Trustee, the Holders or the
holders of Preferred Securities, as the case may be.

Section 5.12.  Control by Holders.

The Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities of any series 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 the Securities of such series, provided that:

(1)  such direction shall not be in conflict with
any rule of law or with this Indenture,

(2) the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent
with such direction, and

(3) subject to the
provisions of Section 6.1, the Trustee shall have the right to decline to
follow such direction if a Responsible Officer or Officers of the Trustee
shall, in good faith, determine that the proceeding so directed would be
unjustly prejudicial to the Holders not joining in any such direction or would
involve the Trustee in personal liability.

 

38

 

Section 5.13.  Waiver of Past Defaults.

The Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities of any series affected thereby and, in the
case of any Securities of a series initially issued to an Issuer Trust, the
holders of a majority in aggregate Liquidation Amount (as defined in the
related Trust Agreement) of the Preferred Securities issued by such Issuer
Trust may waive any past default hereunder and its consequences with respect to
such series except a default:

(1) in the payment
of the principal of (or premium, if any) or interest (including any Additional
Interest) on any Security of such series (unless such default has been cured
and the Corporation has paid to or deposited with the Trustee a sum sufficient
to pay all matured installments of interest (including any Additional Interest)
and all principal of (and premium, if any, on) all Securities of that series
due otherwise than by acceleration, or

(2) in respect of
a covenant or provision hereof that under Article IX cannot be modified or
amended without the consent of each Holder of any Outstanding Security of such
series affected.

Any such waiver shall be deemed to be on behalf of the Holders of
all the Securities of such series or, in the case of a waiver by holders of
Preferred Securities issued by such Issuer Trust, by all holders of Preferred
Securities issued by such Issuer Trust.

Upon any such waiver, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.

Section 5.14.  Undertaking for Costs.

All parties to this Indenture agree, and each Holder of any
Security by his 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, 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 Holder, or group of
Holders, holding in the aggregate more than 10% in aggregate principal amount
of the Outstanding Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of (or premium, if
any) or interest (including any Additional Interest) on any Security on or
after the respective Stated Maturities expressed in such Security.

Section 5.15.  Waiver of Usury, Stay or
Extension Laws.

The Corporation covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury, stay or
extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the
Corporation (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

 

39

 

ARTICLE VI

THE
TRUSTEE

Section 6.1.  Certain Duties and
Responsibilities.

(a) Except during
the continuance of an Event of Default,

(1) the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture or any other related
document against the Trustee; and

(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but in the case
of any such certificates or opinions that by any provisions 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 to
the requirements of this Indenture.

(b) In case an
Event of Default has occurred and is continuing, 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 his or her own affairs.

(c) 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 except that

(i)            this
Subsection shall not be construed to limit the effect of Subsection (a) of this
Section;

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

(iii)          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 Holders pursuant to Section 5.12
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 with respect to the Securities of a
series.

(d) No provision
of this Indenture shall require the Trustee 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.

(e) Whether or not
therein expressly so provided, every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

 

40

 

Section 6.2.  Notice of Defaults.

Within 90 days after actual knowledge by a Responsible Officer of
the Trustee of the occurrence of any default hereunder with respect to the
Securities of any series, the Trustee shall transmit by mail to all Holders of
Securities of such series, as their names and addresses appear in the
Securities Register, notice of such default, unless such default shall have
been cured or waived; provided, however, that, except in the case of a
default in the payment of the principal of (or premium, if any) or interest
(including any Additional Interest) on any Security of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders of Securities of
such series; and provided, further, that, in the case of any default
of the character specified in Section 5.1(3), no such notice to Holders of
Securities of such series shall be given until at least 30 days after the
occurrence thereof. For the purpose of this Section, the term “default” means any event that is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.

Section 6.3.  Certain Rights of Trustee.

Subject to the provisions of Section 6.1:

(a)  the Trustee may rely and shall be protected
in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, Security 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) any request or
direction of the Corporation mentioned herein shall be sufficiently evidenced
by a Corporation Request or Corporation Order and any resolution of the Board
of Directors may be sufficiently evidenced by a Board Resolution;

(c) whenever in
the administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may request and, in the absence of bad faith on its part, rely upon
an Officers’ Certificate;

(d) the Trustee
may consult with counsel and the advice of such counsel or any 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
reliance thereon;

(e) the Trustee
shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant
to this Indenture, unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that might be incurred by it in compliance with such request or direction;

(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, direction, consent, order, bond, indenture, Security or other paper or
document, but the Trustee in its discretion may make such inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Corporation, personally or by
agent or attorney;

 

41

 

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

(h) the Trustee
shall not be liable for any action taken, suffered, or omitted to be taken by
it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

(i) the Trustee
shall not be charged with knowledge of any default or Event of Default with
respect to the Securities unless either (i) a Responsible Officer assigned to
the Corporate Trust Department of the Trustee (or any successor division or
department of the Trustee) shall have actual knowledge of such default or Event
of Default or (ii) written notice of such default or Event of Default shall
have been given to the Trustee by the Company or by any Holder of Securities;
and

(j) the right of
the Trustee to perform any discretionary act enumerated or contemplated in this
Indenture or other related documents shall not be construed as a duty.

Section 6.4.  Not Responsible for
Recitals or Issuance of Securities.

The recitals contained herein and in the Securities, except the
Trustee’s certificates of authentication, shall be taken as the statements of
the Corporation, and neither the Trustee nor any Authenticating Agent assumes
any responsibility for their correctness. The Trustee makes no representations
as to the validity, sufficiency or priority of this Indenture or of the
Securities. Neither the Trustee nor any Authenticating Agent shall be
accountable for the use or application by the Corporation of the Securities or
the proceeds thereof.

Section 6.5.  May Hold Securities.

The Trustee, any Authenticating Agent, any Paying Agent, any
Securities Registrar or any other agent of the Corporation, in its individual
or any other capacity, may become the owner or pledgee of Securities and,
subject to Sections 6.8 and 6.13, may otherwise deal with the Corporation with
the same rights it would have if it were not Trustee, Authenticating Agent,
Paying Agent, Securities Registrar or such other agent.

Section
6.6.  Money Held in Trust.

Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed in writing with the Corporation.

Section
6.7.  Compensation and Reimbursement.

The Corporation agrees to:

(1) pay to the
Trustee from time to time reasonable compensation for all services rendered by
it hereunder in such amounts as the Corporation and the Trustee shall agree
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);

 

42

 

(2) reimburse the
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision of
this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or willful misconduct; and

(3) indemnify the
Trustee and its directors, officers, employees and agents (collectively with
the Trustee, the “Indemnitees”) for, and to hold them harmless against, any
loss, liability or expense, including without limitation damages, fines, suits,
actions, demands, penalties, costs, out-of-pocket or incidental expenses,
reasonable legal fees and expenses and the costs and expenses of defending or
preparing to defend against any claim (collectively, “Losses”), that may be
imposed on or incurred by any Indemnitee for or in respect of the Trustee’s (i)
execution and delivery of this Indenture, (ii) compliance or attempted
compliance with or reliance upon any instruction or other direction upon which
the Trustee is authorized to rely pursuant to the terms of this Indenture and
(iii) performance under this Indenture, except in each case to the extent that
the Loss resulted from the Trustee’s or such Indemnitee’s negligence or willful
misconduct.  As security for the
performance of the obligations of the Guarantor under this paragraph (3), the
Trustee shall have a lien prior to the Securities upon all the property and
funds held or collected by the Trustee as such, except funds held in trust for
the payment of principal of, and premium (if any) or interest on, particular
obligations of the Corporation under this Indenture.

When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 5.1(4) or 5.1(5) occurs, the
expenses and the compensation for the services are intended to constitute
expenses of administration under the Bankruptcy Reform Act of 1978 or any
successor statute.

Section 6.8.  Disqualification; Conflicting Interests.

(a) The Trustee for the Securities of any series issued hereunder
shall be subject to the provisions of Section 310(b) of the Trust
Indenture Act. Nothing herein shall prevent the Trustee from filing with the
Commission the application referred to in the second to last paragraph of said
Section 310(b).

(b) The Trust Agreement and the Guarantee Agreement with respect
to each Issuer Trust shall be deemed to be specifically described in this
Indenture for the purposes of clause (i) of the first proviso contained in
Section 310(b) of the Trust Indenture Act.

Section
6.9.  Corporate Trustee
Required; Eligibility.

There shall at all times be a Trustee hereunder which shall be:

(a) a corporation
organized and doing business under the laws of the United States of America or
of any State or Territory or the District of Columbia, authorized under such
laws to exercise corporate trust powers and subject to supervision or examination
by Federal, State, Territorial or District of Columbia authority, or

(b) a corporation
or other Person organized and doing business under the laws of a foreign
government that is permitted to act as Trustee pursuant to a rule, regulation
or order of the Commission, authorized under such laws to exercise corporate
trust powers, and subject to supervision or examination by authority of such
foreign government or a political subdivision thereof substantially equivalent
to supervision or examination applicable to United States institutional
trustees, in either case having a combined capital and surplus of at least
$50,000,000, subject to supervision or examination by Federal or State
authority. If such corporation 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 6.9, the
combined 

 

43

 

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 the Trustee shall cease to be eligible in accordance with the
provisions of this Section 6.9, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article VI. Neither the
Corporation nor any Person directly or indirectly controlling, controlled by or
under common control with the Corporation shall serve as Trustee for the
Securities of any series issued hereunder.

Section 6.10.  Resignation and Removal;
Appointment of Successor.

(a) No resignation
or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article VI shall become effective until the acceptance of appointment by
the successor Trustee under Section 6.11.

(b) The Trustee
may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Corporation. If an instrument of
acceptance by a successor Trustee shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities of such series.

(c) The Trustee
may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series, delivered to the Trustee and to the Corporation.

(d) If at any
time:

(i) the Trustee shall fail to comply with Section 6.8 after
written request therefor by the Corporation or by any Holder who has been a
bona fide Holder of a Security for at least six months, or

(ii) the Trustee shall cease to be eligible under Section 6.9
and shall fail to resign after written request therefor by the Corporation or
by any such Holder, or

(iii) the Trustee shall become incapable of acting or shall be
adjudged a 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, (i) the Corporation, acting pursuant to the authority of a Board
Resolution, may remove the Trustee with respect to the Securities of all series
issued hereunder, or (ii) subject to Section 5.14, any Holder who has been
a bona fide Holder of a Security for at least six months may, on behalf of such
Holder and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to the Securities of
all series issued hereunder and the appointment of a successor Trustee or
Trustees.

(e) If the Trustee
shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause with respect to the Securities of
one or more series, the Corporation, by a Board Resolution, shall promptly
appoint a successor Trustee with respect to the Securities of that or those
series. If, within one year after such resignation, removal or incapability, or
the occurrence of such vacancy, a successor Trustee with respect to the
Securities of any series shall be appointed by Act of the Holders of a majority
in aggregate principal amount of the Outstanding Securities of such series
delivered to the Corporation and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment, become the
successor Trustee with respect to 

 

44

 

the Securities of
such series and supersede the successor Trustee appointed by the Corporation.
If no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Corporation or the Holders and accepted appointment in
the manner hereinafter provided, any Holder who has been a bona fide Holder of
a Security of such series for at least six months may, subject to Section 5.14,
on behalf of such Holder and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

(f) The
Corporation shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Securities of such series as their names and addresses appear in the
Securities Register. Each notice shall include the name of the successor
Trustee with respect to the Securities of such series and the address of its
Corporate Trust Office.

Section 6.11.  Acceptance of
Appointment by Successor.

(a) In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Corporation and to 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
Corporation 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
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

(b) In case of the
appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Corporation, the retiring Trustee and
each successor Trustee with respect to the Securities of one or more series
shall execute and deliver an indenture supplemental hereto wherein each successor
Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor Trustee
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if
the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee,
and (3) shall 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,
it being understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each 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 with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Corporation or any successor Trustee, such retiring Trustee shall duly
assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates.

 

45

 

(c) Upon request
of any such successor Trustee, the Corporation shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all rights, powers and trusts referred to in paragraph (a) or
(b) of this Section, as the case may be.

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

Section 6.12.  Merger, Conversion,
Consolidation or Succession to Business.

Any corporation into which the Trustee may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding by sale or otherwise to all or substantially all of
the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided such corporation 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. In case any Securities shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion, sale or consolidation to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated, and in case any Securities shall not have been authenticated,
any successor to the Trustee may authenticate such Securities either in the
name of any predecessor Trustee or in the name of such successor Trustee, and
in all cases the certificate of authentication shall have the full force which
it is provided anywhere in the Securities or in this Indenture that the certificate
of the Trustee shall have.

Section 6.13.  Preferential Collection of Claims Against
Corporation.

If and when the Trustee shall be or become a creditor of the
Corporation (or any other obligor upon the Securities), the Trustee shall be
subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Corporation (or any such other obligor).

Section
6.14.  Appointment
of Authenticating Agent.

The Trustee may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities, which shall be authorized to act
on behalf of the Trustee to authenticate Securities of such series issued upon
original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 3.6, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Corporation and shall at all
times be a corporation organized and doing business under the laws of the
United States of America, or of any State or Territory thereof or the District
of Columbia, authorized under such laws to act as Authenticating Agent, having
a combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section the combined capital and surplus of such
Authenticating Agent 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, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

Any corporation into which an Authenticating Agent may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to 

 

46

 

which such Authenticating Agent shall be a
party, or any corporation succeeding by sale or otherwise to all or
substantially all of the corporate trust business of an Authenticating Agent
shall be the successor Authenticating Agent hereunder, provided such
corporation shall be otherwise eligible under this Section, without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Corporation. The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Corporation. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
such Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent, which shall be acceptable to the Corporation and shall give notice of
such appointment in the manner provided in Section 1.6 to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provision of this Section.

The Trustee agrees to pay to each Authenticating Agent from time
to time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 6.7.

If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an
alternative certificate of authentication in the following form:

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

 

47

 

Dated:                           

J. P. MORGAN TRUST COMPANY NATIONAL

ASSOCIATION, NATIONAL ASSOCIATION,
   As Trustee

By:
                                          ,
                As Authenticating Agent

By:                                            ,

                As
Authorized Officer

ARTICLE VII

HOLDER’S LISTS AND REPORTS BY TRUSTEE AND CORPORATION

Section 7.1.  Corporation to Furnish Trustee
Names and Addresses of Holders.

The Corporation
will furnish or cause to be furnished to the Trustee:

(a)  semi-annually, on or before June 30 and
December 31 of each year, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of a date not more than
15 days prior to the delivery thereof, and

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

in each case to
the extent such information is in the possession or control of the corporation
and has not otherwise been received by the Trustee in its capacity as Securities
Registrar.

Section 7.2.  Preservation of
Information, Communications to Holders.

(a) The Trustee
shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the
Trustee as provided in
Section 7.1 and the names and addresses of Holders received by the Trustee
in its capacity as Securities Registrar. The Trustee may destroy any list
furnished to it as provided in Section 7.1 upon receipt of a new list so
furnished.

(b) The rights of
Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and
privileges of the Trustee, shall be as provided in the Trust Indenture Act.

(c) Every Holder
of Securities, by receiving and holding the same, agrees with the Corporation
and the Trustee that neither the Corporation nor the Trustee nor any agent of
either of them shall be held accountable by reason of the disclosure of
information as to the names and addresses of the Holders made pursuant to the
Trust Indenture Act.

 

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Section 7.3.  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, at
the times and in the manner provided pursuant thereto.

(b) Reports so
required to be transmitted at stated intervals of not more than 12 months shall
be transmitted no later than January 31 in each calendar year, commencing with
January 31, 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 and
also with the Commission. The Corporation will notify the Trustee when any
Securities are listed on any securities exchange.

Section 7.4. 
Reports by Corporation.

The Corporation shall file with the Trustee and with the
Commission, and transmit to Holders, such information, documents and other
reports, and such summaries thereof, as may be required pursuant 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 is required to be filed
with the Commission. Notwithstanding that the Corporation may not be required
to remain subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, the Corporation shall continue to file with the Commission
and provide the Trustee with the annual reports and the information, documents
and other reports which are specified in Sections 13 and 15(d) of the Exchange
Act. The Corporation also shall comply with the other provisions of Trust
Indenture Act Section 314(a). 
Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein, including
the Corporation’s compliance with any of its covenants hereunder (as to which
the Trustee is entitled to rely exclusively on Officers’ Certificates).

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.1.  Corporation May Consolidate, Etc., Only on Certain
Terms.

The Corporation shall not consolidate with or merge into any other
Person or convey, transfer or lease its properties and assets substantially as
an entirety to any Person, and no Person shall consolidate with or merge into
the Corporation or convey, transfer or lease its properties and assets
substantially as an entirety to the Corporation, unless:

(1) if the
Corporation shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets substantially as an entirety to any
Person, the corporation formed by such consolidation or into which the
Corporation is merged or the Person that acquires by conveyance or transfer, or
that leases, the properties and assets of the Corporation substantially as an
entirety shall be a corporation, partnership or trust organized and existing
under the laws of the United States of America or any State thereof or the
District of Columbia and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee, in form satisfactory to the
Trustee, the due and punctual payment of the principal of (and premium, if any)
and interest (including any Additional Interest) on all 

 

49

 

the Securities of
every series and the performance of every covenant of this Indenture on the
part of the Corporation to be performed or observed;

(2) immediately
after giving effect to such transaction, no Event of Default, and no event
that, after notice or lapse of time, or both, would constitute an Event of
Default, shall have happened and be continuing; and

(3) in the case of
a transaction covered by clause (1) above, the Corporation has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, conveyance, transfer or lease and any such
supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with; and the Trustee, subject to Section 6.1, may rely upon such Officers’
Certificate and Opinion of Counsel as conclusive evidence that such transaction
complies with this Section 8.1.

Section 8.2.  Successor Corporation Substituted.

Upon any consolidation or merger by the Corporation with or into
any other Person, or any conveyance, transfer or lease by the Corporation of
its properties and assets substantially as an entirety to any Person in
accordance with Section 8.1, the successor corporation formed by such
consolidation or into which the Corporation is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Corporation under this Indenture
with the same effect as if such successor Person had been named as the
Corporation herein; and in the event of any such conveyance, transfer or lease
the Corporation shall be discharged from all obligations and covenants under
this Indenture and the Securities.

Such successor Person may cause to be executed, and may issue
either in its own name or in the name of the Corporation, any or all of the
Securities issuable hereunder that theretofore shall not have been signed by
the Corporation and delivered to the Trustee; and, upon the order of such
successor Person instead of the Corporation and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee shall
authenticate and shall deliver any Securities that previously shall have been
signed and delivered by the officers of the Corporation to the Trustee for
authentication pursuant to such provisions and any Securities that such
successor Person thereafter shall cause to be executed and delivered to the
Trustee on its behalf for the purpose pursuant to such provisions. All the
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Securities theretofore or thereafter issued in
accordance with the terms of this Indenture.

In case of any such consolidation, merger, sale, conveyance or
lease, such changes in phraseology and form may be made in the Securities
thereafter to be issued as may be appropriate.

Section 8.3.  Opinion of Counsel to be Given to the Trustee.

The Trustee shall be provided and, subject to Sections 6.1 and
6.2, shall be fully protected in relying upon Opinion of Counsel as conclusive
evidence that any such consolidation, merger, sale, conveyance or lease and any
such assumption complies with the provisions of this Article.

 

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ARTICLE
IX

SUPPLEMENTAL INDENTURES

Section 9.1.  Supplemental Indentures without
Consent of Holders.

Without the consent of any Holders, the Corporation, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

(1) to evidence
the succession of another Person to the Corporation, and the assumption by any
such successor of the covenants of the Corporation herein and in the Securities
contained; or

(2) to convey,
transfer, assign, mortgage or pledge any property to or with the Trustee or to
surrender any right or power herein conferred upon the Corporation; or

(3) to establish
the form or terms of Securities of any series as permitted by Sections 2.1 or
3.1; or

(4) to add to the
covenants of the Corporation for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less
than all series of Securities, stating that such covenants are expressly being
included solely for the benefit of the series specified) or to surrender any
right or power herein conferred upon the Corporation; or

(5) to add any
additional Events of Default for the benefit of the Holders of all or any series
of Securities (and if such additional Events of Default are to be for the
benefit of less than all series of Securities, stating that such additional
Events of Default are expressly being included solely for the benefit of the
series specified); or

(6) to change or
eliminate any of the provisions of this Indenture, provided that any such change or elimination shall (a)
become effective only when there is no Security Outstanding of any series
created prior to the execution of such supplemental indenture that is entitled
to the benefit of such provision or (b) not apply to any Outstanding
Securities; or

(7)  to cure any ambiguity, to correct or
supplement any provision herein that may be defective or inconsistent with any
other provision herein, or to make any other provisions with respect to matters
or questions arising under this Indenture, provided
that such action pursuant to this clause (7) shall not adversely
affect the interest of the Holders of Securities of any series in any material
respect or, in the case of the Securities of a series issued to an Issuer Trust
and for so long as any of the corresponding series of Preferred Securities
issued by such Issuer Trust shall remain outstanding, the holders of such
Preferred Securities; or

(8) to evidence and
provide for the acceptance of appointment hereunder by a successor Trustee with
respect to the Securities of one or more series 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 6.11(b); or

(9) to comply with
the requirements of the Commission in order to effect or maintain qualification
of this Indenture under the Trust Indenture Act.

 

51

 

Section 9.2.  Supplemental Indentures with Consent of Holders.

With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of each series affected
by such supplemental indenture, by Act of said Holders delivered to the
Corporation and the Trustee, the Corporation, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities of such series
under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
of each series affected thereby,

(1) change the
Stated Maturity of the principal of, or any installment of interest (including
any Additional Interest) on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
redemption thereof, or change the manner in calculating the rate of interest
thereon, or reduce the amount of principal of a Discount Security that would be
due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 5.2, or change the place of payment where, or the coin
or currency in which, any Security or interest thereon is payable, or impair
the right to institute suit for the enforcement of any such payment on or after
the Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or

(2) reduce the
percentage in aggregate principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver (of
compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences) provided for in this Indenture, or

(3) modify any of
the provisions of this Section, Section 5.13 or Section 10.5, except
to increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder
of each Security affected thereby;

provided, further, that, in the case of the
Securities of a series issued to an Issuer Trust, so long as any of the
corresponding series of Preferred Securities issued by such Issuer Trust
remains outstanding, (i) no such amendment shall be made that adversely affects
the holders of such Preferred Securities in any material respect, and no
termination of this Indenture shall occur, and no waiver of any Event of
Default or compliance with any covenant under this Indenture shall be
effective, without the prior consent of the holders of at least a majority of
the aggregate Liquidation Amount (as defined in the related Trust Agreement) of
such Preferred Securities then outstanding unless and until the principal of
(and premium, if any, on) the Securities of such series and all accrued and
(subject to Section 3.8 and Section 3.12) unpaid interest (including any
Additional Interest) thereon have been paid in full, and (ii) no amendment
shall be made to Section 5.8 of this Indenture that would impair the
rights of the holders of Preferred Securities issued by any Issuer Trust
provided therein without the prior consent of the holders of each such Capital
Security then outstanding unless and until the principal of (and premium, if
any, on) the Securities of such series and all accrued and (subject to
Section 3.8 and Section 3.12) unpaid interest (including any Additional
Interest) thereon have been paid in full.

A supplemental indenture that changes or eliminates any covenant
or other provision of this Indenture that has expressly been included solely
for the benefit of one or more particular series of Securities or any
corresponding series of Preferred Securities of an Issuer Trust that holds the
Securities of any series, or that modifies the rights of the Holders of
Securities of such series or holders of such Preferred Securities of such
corresponding series with respect to such covenant or other provision, shall be
deemed not to affect the rights under this Indenture of the Holders of
Securities of any other series or holders of Preferred Securities of any other
such corresponding series.

 

52

 

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

Section 9.3.  Execution of Supplemental Indentures.

In executing or accepting the additional trusts created by any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 6.1) shall be fully protected in relying
upon, an Officers’ Certificate and an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture, and that all conditions precedent herein provided for relating to
such action have been complied with. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture that affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

Section 9.4.  Effect of Supplemental Indentures.

Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes;
and every Holder of Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.

Section 9.5.  Conformity with Trust
Indenture Act.

Every supplemental indenture executed pursuant to this Article
shall conform to the requirements of the Trust Indenture Act as then in effect.

Section 9.6.  Reference in Securities to Supplemental Indentures.

Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Corporation, bear a notation in form approved by the Corporation as to any
matter provided for in such supplemental indenture. If the Corporation shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Corporation, to any such supplemental indenture may be prepared
and executed by the Corporation and authenticated and delivered by the Trustee
in exchange for Outstanding Securities of such series.

Section 9.7.  Notice of Supplemental Indentures.

Promptly after the execution by the Corporation and the
appropriate Trustee of any supplemental indenture to Section 9.2, the
Corporation shall transmit by mail to all Holders of any series of the
securities affected thereby, as their name and addresses appear in the
Securities Registrar, a notice setting forth in general terms the substance of
each supplemental indenture.

 

53

 

ARTICLE X

COVENANTS

Section 10.1.  Payment of Principal, Premium and Interest.

The Corporation covenants and agrees for the benefit of each
series of Securities that it will duly and punctually pay the principal of (and
premium, if any) and interest (including any Additional Interest) on the
Securities of that series in accordance with the terms of such Securities and
this Indenture.

Section 10.2.  Maintenance of Office or Agency.

The Corporation will maintain in each Place of Payment for any
series of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Corporation in respect of the Securities of that series
and this Indenture may be served. The Corporation initially appoints the
Trustee, acting through its Corporate Trust Office, as its agent for said
purposes. The Corporation will give prompt written notice to the Trustee of any
change in the location of any such office or agency. If at any time the
Corporation shall fail to maintain such office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Corporation hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands.

The Corporation may also from time to time designate one or more
other offices or agencies where the Securities may be presented or surrendered
for any or all of such purposes, and may from time to time rescind such
designations; provided, however, that no such designation or
rescission shall in any manner relieve the Corporation of its obligation to
maintain an office or agency in each Place of Payment for Securities of any
series for such purposes. The Corporation will give prompt written notice to
the Trustee of any such designation and any change in the location of any such
office or agency.

Section 10.3.  Money for Security Payments to be Held in Trust.

If the Corporation shall at any time act as its own Paying Agent
with respect to any series of Securities, it will, on or before each due date
of the principal of (and premium, if any, on) or interest on any of the
Securities of such series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal (and premium, if
any) or interest so becoming due until such sums shall be paid to such Persons
or otherwise disposed of as herein provided, and will promptly notify the
Trustee of its failure so to act.

Whenever the Corporation shall have one or more Paying Agents, it
will, prior to 10:00 a.m., New York City time, on each due date of the
principal of (or premium, if any) or interest (including any Additional
Interest) on any Securities, deposit with a Paying Agent a sum sufficient to
pay the principal (and premium, if any) or interest (including any Additional
Interest) so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal (and premium, if any) or interest (including
any Additional Interest), and (unless such Paying Agent is the Trustee) the
Corporation will promptly notify the Trustee of its failure so to act.

The Corporation will cause each Paying Agent other than the
Trustee to execute and deliver to the Trustee an instrument in which such Paying
Agent shall agree with the Trustee, subject to the provisions of this Section,
that such Paying Agent will:

 

54

 

(1) hold all sums
held by it for the payment of the principal of (and premium, if any) or interest
(including any Additional Interest) on the Securities of a series in trust for
the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided;

(2) give the
Trustee notice of any default by the Corporation (or any other obligor upon
such Securities) in the making of any payment of principal (and premium, if
any) or interest (including any Additional Interest) in respect of any Security
of any series;

(3) at any time
during the continuance of any default with respect to a series of Securities,
upon the written request of the Trustee, forthwith pay to the Trustee all sums
so held in trust by such Paying Agent with respect to such series; and

(4) comply with
the provisions of the Trust Indenture Act applicable to it as a Paying Agent.

The Corporation may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Corporation Order direct any Paying Agent to pay, to the Trustee all sums
held in trust by the Corporation or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the
Corporation or such Paying Agent; and, upon such payment by any Paying Agent to
the Trustee, such Paying Agent shall be released from all further liability
with respect to such money.

Any money deposited with the Trustee or any Paying Agent, or then
held by the Corporation in trust for the payment of the principal of (and
premium, if any) or interest (including any Additional Interest) on any
Security and remaining unclaimed for two years after such principal (and
premium, if any) or interest has become due and payable shall (unless otherwise
required by mandatory provision of applicable escheat or abandoned or unclaimed
property law) be paid on Corporation Request to the Corporation, or (if then
held by the Corporation) shall (unless otherwise required by mandatory
provision of applicable escheat or abandoned or unclaimed property law) be
discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Corporation for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Corporation as trustee thereof,
shall thereupon cease; provided, however, that the Trustee or such Paying
Agent, before being required to make any such repayment, may at the expense of
the Corporation cause to be published once, in a newspaper published in the
English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Corporation.

Section 10.4.  Statement as to Compliance.

The Corporation shall deliver to the Trustee, within 120 days
after the end of each fiscal year of the Corporation ending after the date
hereof, an Officers’ Certificate covering the preceding calendar year, stating
whether or not to the best knowledge of the signers thereof the Corporation is
in default in the performance, observance or fulfillment of or compliance with
any of the terms, provisions, covenants and conditions of this Indenture, and
if the Corporation shall be in default, specifying all such defaults and the
nature and status thereof of which they may have knowledge. For the purpose of
this Section 10.4, compliance shall be determined without regard to any
grace period or requirement of notice provided pursuant to the terms of this
Indenture.

 

55

 

Section 10.5.  Waiver of Certain
Covenants.

Subject to the rights of holders of Preferred Securities specified
in Section 9.2, if any, the Corporation may omit in any particular
instance to comply with any covenant or condition provided pursuant to
Section 3.1, 9.1(3) or 9.1(4) with respect to the Securities of any
series, if before or after the time for such compliance the Holders of at least
a majority in aggregate principal amount of the Outstanding Securities of such
series shall, by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Corporation in respect of any such covenant or condition
shall remain in full force and effect.

Section 10.6.  Additional Sums.

In the case of the Securities of a series initially issued to an
Issuer Trust, so long as no Event of Default has occurred and is continuing and
except as otherwise specified as contemplated by Section 2.1 or
Section 3.1, if (i) an Issuer Trust is the Holder of all of the
Outstanding Securities of such series, and (ii) a Tax Event has occurred and is
continuing in respect of such Issuer Trust, the Corporation shall pay to such
Issuer Trust (and its permitted successors or assigns under the related Trust
Agreement) for so long as such Issuer Trust (or its permitted successor or
assignee) is the registered holder of the Outstanding Securities of such
series, such additional sums as may be necessary in order that the amount of
Distributions (including any Additional Amounts (as defined in such Trust
Agreement)) then due and payable by such Issuer Trust on the related Preferred
Securities and Common Securities that at any time remain outstanding in
accordance with the terms thereof shall not be reduced as a result of any
Additional Taxes arising from such Tax Event (the “Additional Sums”). Whenever in this Indenture or the
Securities there is a reference in any context to the payment of principal of
or interest on the Securities, such mention shall be deemed to include mention
of the payments of the Additional Sums provided for in this paragraph to the extent
that, in such context, Additional Sums are, were or would be payable in respect
thereof pursuant to the provisions of this paragraph and express mention of the
payment of Additional Sums (if applicable) in any provisions hereof shall not
be construed as excluding Additional Sums in those provisions hereof where such
express mention is not made; provided,
however, that the deferral of the
payment of interest pursuant to Section 3.12 or the Securities shall not
defer the payment of any Additional Sums that may be due and payable.

Section 10.7.  Additional Covenants.

The Corporation covenants and agrees with each Holder of
Securities of each series that it shall not (x) declare or pay any dividends or
distributions on, or redeem purchase, acquire or make a liquidation payment
with respect to, any shares of the Corporation’s capital stock, 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 Corporation that rank pari passu in all respects with or junior
in interest to the Securities of such series (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Corporation
in connection with any employment contract, benefit plan or other similar arrangement
with or for the benefit of any one or more employees, officers, directors or
consultants, in connection with a dividend reinvestment or stockholder stock
purchase plan or in connection with the issuance of capital stock of the
Corporation (or securities convertible into or exercisable for such capital
stock) as consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of an exchange or conversion of
any class or series of the Corporation’s capital stock (or any capital stock of
a Subsidiary of the Corporation) for any class or series of the Corporation’s
capital stock or of any class or series of the Corporation’s indebtedness for
any class or series of the Corporation’s capital stock, (c) the purchase of
fractional interests in shares of the Corporation’s capital stock pursuant to
the 

 

56

 

conversion or exchange provisions of such
capital stock or the security being converted or exchanged, (d) any declaration
of a dividend in connection with any Rights Plan, or the issuance of rights,
stock or other property under any Rights Plan, or the redemption or repurchase
of rights pursuant thereto, or (e) any dividend in the form of stock, warrants,
options or other rights where the dividend stock or the stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on
which the dividend is being paid or ranks pari
passu with or junior to such stock) if at such time (i) there shall
have occurred any event (A) of which the Corporation has actual knowledge that
with the giving of notice or the lapse of time, or both, would constitute an
Event of Default with respect to the Securities of such series, and (B) which
the Corporation shall not have taken reasonable steps to cure, (ii) if the
Securities of such series are held by an Issuer Trust, the Corporation shall be
in default with respect to its payment of any obligations under the Guarantee
Agreement relating to the Preferred Securities issued by such Issuer Trust, or
(iii) the Corporation shall have given notice of its election to begin an
Extension Period with respect to the Securities of such series as provided
herein and shall not have rescinded such notice, or such Extension Period, or
any extension thereof, shall be continuing.

The Corporation also covenants with each Holder of Securities of a
series issued to an Issuer Trust (i) to hold, directly or indirectly, 100% of
the Common Securities of such Issuer Trust, provided
that any permitted successor of the Corporation hereunder may succeed to the
Corporation’s ownership of such Common Securities, (ii) as holder of such
Common Securities, not to voluntarily terminate, wind-up or liquidate such
Issuer Trust, other than (a) in connection with a distribution of the
Securities of such series to the holders of the related Preferred Securities in
liquidation of such Issuer Trust, or (b) in connection with certain mergers,
consolidations or amalgamations permitted by the related Trust Agreement, and
(iii) to use its reasonable efforts, consistent with the terms and provisions
of such Trust Agreement, to cause such Issuer Trust to continue not to be
taxable as a corporation for United States federal income tax purposes.

Section 10.8.    Original Issue Discount.

For each year during which any Securities that were issued with
original issue discount are Outstanding, the Corporation shall furnish to each
Paying Agent in a timely fashion such information as may be reasonably
requested by each Paying Agent in order that each Paying Agent may prepare the
information which it is required to report for such year on Internal Revenue
Service Forms 1096 and 1099 pursuant to Section 6049 of the Internal
Revenue Code of 1986, as amended.  Such
information shall include the amount of original issue discount includible in
income for each $25 of principal amount at Stated Maturity of outstanding
Securities during such year.

ARTICLE XI

REDEMPTION OF
SECURITIES

Section 11.1.  Applicability of This
Article.

Redemption of Securities of any series (whether by operation of a
sinking fund or otherwise) as permitted or required by any form of Security
issued pursuant to this Indenture shall be made in accordance with such form of
Security and this Article; provided,
however, that if any provision of
any such form of Security shall conflict with any provision of this Article,
the provision of such form of Security shall govern. Except as otherwise set
forth in the form of Security for such series, each Security of a series shall
be subject to partial redemption only in the amount of $25 or any integral
multiples thereof.

 

57

 

Section 11.2.  Election to Redeem;
Notice to Trustee.

The election of the Corporation to redeem any Securities shall be
evidenced by or pursuant to a Board Resolution. In case of any redemption at
the election of the Corporation, the Corporation shall, at least 45 days prior
to the Redemption Date (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee and, in the case of Securities of a series held by
an Issuer Trust, the Property Trustee under the related Trust Agreement, of
such date and of the principal amount of Securities of the applicable series to
be redeemed and provide the additional information required to be included in
the notice or notices contemplated by Section 11.4; provided that in the case of any series of
Securities initially issued to an Issuer Trust, for so long as such Securities
are held by such Issuer Trust, such notice shall be given not less than 45 nor
more than 75 days prior to such Redemption Date (unless a shorter notice shall
be satisfactory to the Property Trustee under the related Trust Agreement). In
the case of any redemption of Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Securities, the
Corporation shall furnish the Trustee with an Officers’ Certificate and an
Opinion of Counsel evidencing compliance with such restriction.

Section 11.3.  Selection of Securities
to be Redeemed.

If less than all the Securities of any series are to be redeemed,
the particular Securities to be redeemed shall be selected not more than 60
days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of a portion of the principal amount of any Security
of such series, provided that the
unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security.  If
less than all the Securities of such series and of a specified tenor are to be
redeemed (unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series and specified tenor not previously called for redemption in
accordance with the preceding sentence.

The Trustee shall promptly notify the Corporation in writing of
the Securities selected for partial redemption and the principal amount thereof
to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security that has been or
is to be redeemed. If the Company shall so direct, Securities registered in the
name of the Company, any Affiliate or any Subsidiary thereof shall not be
included in the Securities selected for redemption.

Section 11.4.  Notice of Redemption.

Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not later than the thirtieth day, and not earlier than the
sixtieth day, prior to the Redemption Date, to each Holder of Securities to be
redeemed, at the address of such Holder as it appears in the Securities
Register, provided that in the
case of any series of Securities initially issued to an Issuer Trust, for so
long as such Securities are held by such Issuer Trust, such notice shall be given
not less than 45 nor more than 75 days prior to such Redemption Date (unless a
shorter notice shall be satisfactory to the Property Trustee under the related
Trust Agreement).

With respect to Securities of each series to be redeemed, each
notice of redemption shall state:

(a) the Redemption
Date;

 

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(b) the Redemption
Price or, if the Redemption Price cannot be calculated prior to the time the
notice is required to be sent, the estimate of the Redemption Price together
with a statement that it is an estimate and that the actual Redemption Price
will be calculated 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);

(c) if less than
all Outstanding Securities of such particular series are to be redeemed, the
identification (and, in the case of partial redemption, the respective
principal amounts) of the particular Securities to be redeemed;

(d) that on the
Redemption Date, the Redemption Price will become due and payable upon each
such Security or portion thereof, and that interest (including any Additional
Interest) thereon, if any, shall cease to accrue on and after said date;

(e) the place or
places where such Securities are to be surrendered for payment of the
Redemption Price;

(f) that the
redemption is for a sinking fund, if such is the case; and

(g)  such other provisions as may be required in
respect of the terms of a particular series of Securities.

Notice of redemption of Securities to be redeemed at the election
of the Corporation shall be given by the Corporation or, at the Corporation’s
request, by the Trustee in the name and at the expense of the Corporation and
shall be irrevocable. The notice if mailed in the manner provided above shall
be conclusively presumed to have been duly given, whether or not the Holder
receives such notice. In any case, a failure to give such notice by mail or any
defect in the notice to the Holder of any Security designated for redemption as
a whole or in part shall not affect the validity of the proceedings for the
redemption of any other Security.

Section 11.5.  Deposit of Redemption Price.

Prior to 10:00 a.m., New York City time, on the Redemption Date
specified in the notice of redemption given as provided in Section 11.4,
the Corporation will deposit with the Trustee or with one or more Paying Agents
(or if the Corporation is acting as its own Paying Agent, the Corporation will
segregate and hold in trust as provided in Section 10.3) an amount of
money sufficient to pay the Redemption Price of, and any accrued interest
(including any Additional Interest) on, all the Securities (or portions
thereof) that are to be redeemed on that date.

Section
11.6.    Payment of Securities Called for Redemption.

If any notice of redemption has been given as provided in
Section 11.4, the Securities or portion of Securities with respect to
which such notice has been given shall become due and payable on the date and
at the place or places stated in such notice at the applicable Redemption
Price, together with accrued interest (including any Additional Interest) to
the Redemption Date. On presentation and surrender of such Securities at a Place
of Payment in said notice specified, the said Securities or the specified
portions thereof shall be paid and redeemed by the Corporation at the
applicable Redemption Price, together with accrued interest (including any
Additional Interest) to the Redemption Date; provided,
however, that, unless otherwise
specified as contemplated by Section 3.1, installments of interest
(including any Additional Interest) whose Stated Maturity is on or prior to the
Redemption Date will be payable to the 

 

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Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant record dates according to their terms and the provisions of
Section 3.8.

Upon presentation of any Security redeemed in part only, the
Corporation shall execute and the Trustee shall authenticate and deliver to the
Holder thereof, at the expense of the Corporation, a new Security or Securities
of the same series, of authorized denominations, in aggregate principal amount
equal to the unredeemed portion of the Security so presented and having the
same Original Issue Date, Stated Maturity and terms. If a Global Security is so
surrendered, such new Security will also be a new Global Security.

If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal of and premium, if any, on such
Security shall, until paid, bear interest from the Redemption Date at the rate
prescribed therefor in the Security.

Section 11.7.  Right of Redemption of Securities Initially Issued to an Issuer
Trust.

In the case of the Securities of a series initially issued to an
Issuer Trust, except as otherwise specified as contemplated by
Section 3.1, the Corporation, at its option, may redeem such Securities
(i) on or after the date specified in such Security, in whole at any time or in
part from time to time, or (ii) upon the occurrence and during the continuation
of a Tax Event or a Capital Treatment Event, at any time within 90 days
following the occurrence and during the continuation of such Tax Event or
Capital Treatment Event, in whole (but not in part), in each case at a
Redemption Price of 100% unless specified in such Security, together with
accrued interest (including any Additional Interest) to the Redemption Date; provided that the Corporation’s right to
redeem such Securities pursuant to clause (i) or (ii) above is subject to the
Corporation having received the prior approval of the Board of Governors of the
Federal Reserve System if required under applicable capital guidelines or
policies of the Board of Governors of the Federal Reserve System.

If less than all the Securities of any such series are to be
redeemed, the aggregate principal amount of such Securities remaining
Outstanding after giving effect to such redemption shall be sufficient to
satisfy any provisions of the Trust Agreement related to the Issuer Trust to
which such Securities were issued, including any requirement in such Trust
Agreement as to the minimum Liquidation Amount (as defined in such Trust
Agreement) of Preferred Securities that may be held by a holder of Preferred
Securities thereunder.

ARTICLE XII

SINKING FUNDS

Section 12.1.  Applicability of
Article.

The provisions of this Article shall be applicable to any sinking
fund for the retirement of Securities of any series except as otherwise
specified as contemplated by Section 3.1 for such Securities.

The minimum amount of any sinking fund payment provided for by the
terms of any Securities of any series is herein referred to as a “mandatory sinking fund payment”, and any
sinking fund payment in excess of such minimum amount that is permitted to be
made by the terms of such Securities of any series is herein referred to as an “optional sinking fund payment”. If
provided for by the terms of any Securities of any series, the cash amount of
any sinking fund payment may be subject to reduction as provided in 

 

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Section 12.2. Each sinking fund
payment shall be applied to the redemption of Securities of any series as
provided for by the terms of such Securities.

Section 12.2.  Satisfaction of Sinking Fund Payments with
Securities.

In lieu of making all or any part of a mandatory sinking fund
payment with respect to any Securities of a series in cash, the Corporation may
at its option, at any time no more than 16 months and no less than 45 days
prior to the date on which such sinking fund payment is due, deliver to the
Trustee Securities of such series (together with the unmatured coupons, if any,
appertaining thereto) theretofore purchased or otherwise acquired by the
Corporation, except Securities of such series that have been redeemed through
the application of mandatory or optional sinking fund payments pursuant to the
terms of the Securities of such series, accompanied by a Corporation Order
instructing the Trustee to credit such obligations and stating that the
Securities of such series were originally issued by the Corporation by way of
bona fide sale or other negotiation for value; provided that the Securities to
be so credited have not been previously so credited. The Securities to be so
credited shall be received and credited for such purpose by the Trustee at the
redemption price for such Securities, as specified in the Securities so to be
redeemed, for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly.

Section
12.3.  Redemption
of Securities for Sinking Fund.

Not less than 45 days prior to each sinking fund payment date for
any series of Securities, the Corporation will deliver to the Trustee an
Officers’ Certificate specifying the amount of the next ensuing sinking fund
payment for such Securities pursuant to the terms of such Securities, the
portion thereof, if any, which is to be satisfied by payment of cash in the
currency in which the Securities of such series are payable (except as provided
pursuant to Section 3.1) and the portion thereof, if any, that is to be
satisfied by delivering and crediting Securities pursuant to Section 12.2
and will also deliver to the Trustee any Securities to be so delivered. Such
Officers’ Certificate shall be irrevocable and upon its delivery the
Corporation shall be obligated to make the cash payment or payments therein
referred to, if any, on or before the succeeding sinking fund payment date. In
the case of the failure of the Corporation to deliver such Officers’
Certificate (or, as required by this Indenture, the Securities and coupons, if
any, specified in such Officers’ Certificate) by the due date therefor, the
sinking fund payment due on the succeeding sinking fund payment date for such
series shall be paid entirely in cash and shall be sufficient to redeem the
principal amount of the Securities of such series subject to a mandatory
sinking fund payment without the right to deliver or credit securities as
provided in Section 12.2 and without the right to make the optional
sinking fund payment with respect to such series at such time.

Any sinking fund payment or payments (mandatory or optional) made
in cash plus any unused balance of any preceding sinking fund payments made
with respect to the Securities of any particular series shall be applied by the
Trustee (or by the Corporation if the Corporation is acting as its own Paying
Agent) on the sinking fund payment date on which such payment is made (or, if
such payment is made before a sinking fund payment date, on the sinking fund
payment date immediately following the date of such payment) to the redemption
of Securities of such series at the Redemption Price specified in such
Securities with respect to the sinking fund. Any and all sinking fund moneys
with respect to the Securities of any particular series held by the Trustee (or
if the Corporation is acting as its own Paying Agent, segregated and held in
trust as provided in Section 10.3) on the last sinking fund payment date
with respect to Securities of such series and not held for the payment or
redemption of particular Securities of such series shall be applied by the
Trustee (or by the Corporation if the Corporation is acting as its own Paying
Agent), together with other moneys, if necessary, to be deposited (or
segregated) sufficient for the purpose, to the payment of the principal of the
Securities of such series at Maturity. The Trustee shall select the Securities
to be redeemed upon such sinking fund payment date in the manner specified in 

 

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Section 11.3 and cause notice of the
redemption thereof to be given in the name of and at the expense of the
Corporation in the manner provided in Section 11.4. Such notice having
been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Section 11.6. On or before each sinking fund
payment date, the Corporation shall pay to the Trustee (or, if the Corporation
is acting as its own Paying Agent, the Corporation shall segregate and hold in
trust as provided in Section 10.3) in cash a sum in the currency in which
Securities of such series are payable (except as provided pursuant to
Section 3.1) equal to the principal (and premium, if any) and any interest
(including any Additional Interest) accrued to the Redemption Date for
Securities or portions thereof to be redeemed on such sinking fund payment date
pursuant to this Section 12.3.

Neither the Trustee nor the Corporation
shall redeem any Securities of a series with sinking fund moneys or mail any
notice of redemption of Securities of such series by operation of the sinking
fund for such series during the continuance of a default in payment of
interest, if any, on any Securities of such series or of any Event of Default
(other than an Event of Default occurring as a consequence of this paragraph)
with respect to the Securities of such series, except that if the notice of
redemption shall have been provided in accordance with the provisions hereof,
the Trustee (or the Corporation, if the Corporation is then acting as its own
Paying Agent) shall redeem such Securities if cash sufficient for that purpose
shall be deposited with the Trustee (or segregated by the Corporation) for that
purpose in accordance with the terms of this Article XII. Except as aforesaid,
any moneys in the sinking fund for such series at the time when any such
default or Event of Default shall occur and any moneys thereafter paid into
such sinking fund shall, during the continuance of such default or Event of
Default, be held as security for the payment of the Securities and coupons, if
any, of such series; provided, however, that in case such default or
Event of Default shall have been cured or waived herein, such moneys shall
thereafter be applied on the next sinking fund payment date for the Securities
of such series on which such moneys may be applied pursuant to the provisions
of this Section 12.3.

ARTICLE XIII

SUBORDINATION OF
SECURITIES

Section 13.1.  Securities Subordinate
to Senior Indebtedness.

The Corporation covenants and agrees, and each Holder of a
Security, by its acceptance thereof, likewise covenants and agrees, that, to
the extent and in the manner hereinafter set forth in this Article, the payment
of the principal of (and premium, if any) and interest (including any
Additional Interest) on each and all of the Securities of each and every series
are hereby expressly made subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness.

Section 13.2.  No Payment When Senior
Indebtedness in Default; Payment Over of Proceeds Upon Dissolution, Etc.

If the Corporation shall default in the payment of any principal
of (or premium, if any), interest on or any other amount payable on any Senior
Indebtedness when the same becomes due and payable, whether at maturity or at a
date fixed for prepayment or by declaration of acceleration or otherwise, then,
upon written notice of such default to the Corporation by the holders of Senior
Indebtedness or any trustee therefor, unless and until such default shall have
been cured or waived or shall have ceased to exist, no direct or indirect
payment (in cash, property, securities, by set-off or otherwise) shall be made
or agreed to be made on account of the principal of (or premium, if any) or
interest (including any 

 

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Additional Interest) on any of the
Securities, or in respect of any redemption, repayment, retirement, purchase or
other acquisition of any of the Securities.

In the event of (a) any insolvency, bankruptcy, receivership,
liquidation, reorganization, readjustment, composition or other similar
proceedings relating to the Corporation, its creditors or its property, (b) any
proceeding for the liquidation, dissolution or other winding up of the
Corporation, voluntary or involuntary, whether or not involving insolvency or
bankruptcy proceedings, (c) any assignment by the Corporation for the benefit
of creditors or (d) any other marshalling of the assets of the Corporation
(each such event, if any, herein sometimes referred to as a “Proceeding”), all Senior Indebtedness
(including any interest thereon accruing after the commencement of any such
proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any Holder of
any of the Securities on account thereof. Any payment or distribution, whether
in cash, securities or other property (other than securities of the Corporation
or any other corporation provided for by a plan of reorganization or
readjustment the payment of which is subordinate, at least to the extent
provided in these subordination provisions with respect to the indebtedness
evidenced by the Securities, to the payment of all Senior Indebtedness at the
time outstanding and to any securities issued in respect thereof under any such
plan of reorganization or readjustment), which would otherwise (but for these
subordination provisions) be payable or deliverable in respect of the
Securities of any series shall be paid or delivered directly to the holders of
Senior Indebtedness in accordance with the priorities then existing among such
holders until all Senior Indebtedness (including any interest thereon accruing
after the commencement of any Proceeding) shall have been paid in full.

In the event of any Proceeding, after payment in full of all sums
owing with respect to Senior Indebtedness, the Holders of the Securities,
together with the holders of any obligations of the Corporation ranking on a
parity with the Securities (which for this purpose only shall include the
Allocable Amounts of Senior Subordinated Debt), shall be entitled to be paid
from the remaining assets of the Corporation the amounts at the time due and
owing on account of unpaid principal of (and premium, if any) and interest on
the Securities and such other obligations before any payment or other
distribution, whether in cash, property or otherwise, shall be made on account
of any capital stock or any obligations of the Corporation ranking junior to
the Securities and such other obligations. If, notwithstanding the foregoing,
any payment or distribution of any character or any security, whether in cash,
securities or other property (other than securities of the Corporation or any
other corporation provided for by a plan of reorganization or readjustment the
payment of which is subordinate, at least to the extent provided in these
subordination provisions with respect to the indebtedness evidenced by the
Securities, to the payment of all Senior Indebtedness at the time outstanding
and to any securities issued in respect thereof under any such plan of
reorganization or readjustment), shall be received by the Trustee or any Holder
in contravention of any of the terms hereof and before all Senior Indebtedness
shall have been paid in full, such payment or distribution or security shall be
received in trust for the benefit of, and shall be paid over or delivered and
transferred to, the holders of the Senior Indebtedness at the time outstanding
in accordance with the priorities then existing among such holders for
application to the payment of all Senior Indebtedness remaining unpaid, to the
extent necessary to pay all such Senior Indebtedness in full. In the event of
the failure of the Trustee or any Holder to endorse or assign any such payment,
distribution or security, each holder of Senior Indebtedness is hereby
irrevocably authorized to endorse or assign the same.

The Trustee and the Holders shall take such action (including,
without limitation, the delivery of this Indenture to an agent for the holders
of Senior Indebtedness or consent to the filing of a financing statement with
respect hereto) as may, in the opinion of counsel designated by the holders of
a majority in principal amount of the Senior Indebtedness at the time
outstanding, be necessary or appropriate to assure the effectiveness of the
subordination effected by these provisions.

 

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The provisions of this Section 13.2 shall not impair any
rights, interests, remedies or powers of any secured creditor of the Corporation
in respect of any security interest the creation of which is not prohibited by
the provisions of this Indenture.

The securing of any obligations of the Corporation, otherwise
ranking on a parity with the Securities or ranking junior to the Securities,
shall not be deemed to prevent such obligations from constituting,
respectively, obligations ranking on a parity with the Securities or ranking
junior to the Securities.

Section 13.3.  Payment Permitted If No
Default.

Nothing contained in this Article or elsewhere in this Indenture
or in any of the Securities shall prevent (a) the Corporation, at any time,
except during the pendency of the conditions described in the first paragraph
of Section 13.2 or of any Proceeding referred to in Section 13.2,
from making payments at any time of principal of (and premium, if any) or
interest (including any Additional Interest) on the Securities, or (b) the
application by the Trustee of any moneys deposited with it hereunder to the
payment of or on account of the principal of (and premium, if any) or interest
(including any Additional Interest) on the Securities or the retention of such
payment by the Holders, if, at the time of such application by the Trustee, it
did not have knowledge that such payment would have been prohibited by the
provisions of this Article.

Section 13.4.  Subrogation to Rights of
Holders of Senior Indebtedness.

Subject to the payment in full of all amounts due or to become due
on all Senior Indebtedness, or the provision for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior
Indebtedness, the Holders of the Securities shall be subrogated to the extent
of the payments or distributions made to the holders of such Senior
Indebtedness pursuant to the provisions of this Article (equally and ratably
with the holders of all indebtedness of the Corporation that by its express
terms is subordinated to Senior Indebtedness of the Corporation to
substantially the same extent as the Securities are subordinated to the Senior
Indebtedness and is entitled to like rights of subrogation by reason of any
payments or distributions made to holders of such Senior Indebtedness) to the
rights of the holders of such Senior Indebtedness to receive payments and
distributions of cash, property and securities applicable to the Senior
Indebtedness until the principal of (and premium, if any) and interest
(including any Additional Interest) on the Securities shall be paid in full.
For purposes of such subrogation, no payments or distributions to the holders
of the Senior Indebtedness of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article, and no payments over pursuant to the provisions of
this Article to the holders of Senior Indebtedness by Holders of the Securities
or the Trustee, shall, as among the Corporation, its creditors other than
holders of Senior Indebtedness, and the Holders of the Securities, be deemed to
be a payment or distribution by the Corporation to or on account of the Senior
Indebtedness.

Section 13.5.  Provisions Solely to
Define Relative Rights.

The provisions of this Article are and are intended solely for the
purpose of defining the relative rights of the Holders of the Securities on the
one hand and the holders of Senior Indebtedness on the other hand. Nothing
contained in this Article or elsewhere in this Indenture or in the Securities
is intended to or shall (a) impair, as between the Corporation and the Holders
of the Securities, the obligations of the Corporation, which are absolute and
unconditional, to pay to the Holders of the Securities the principal of (and
premium, if any) and interest (including any Additional Interest) on the
Securities as and when the same shall become due and payable in accordance with
their terms; or (b) affect the relative rights against the Corporation of the
Holders of the Securities and creditors of the Corporation other than their
rights in 

 

64

 

relation to the holders of Senior
Indebtedness; or (c) prevent the Trustee or the Holder of any Security (or to
the extent expressly provided herein, the holder of any Capital Security) from
exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, including filing and voting claims in any Proceeding,
subject to the rights, if any, under this Article of the holders of Senior
Indebtedness to receive cash, property and securities otherwise payable or
deliverable to the Trustee or such Holder.

Section 13.6.  Trustee to Effectuate Subordination.

Each Holder of a Security by his or her acceptance thereof
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
provided in this Article and appoints the Trustee his or her attorney-in-fact
for any and all such purposes.

Section
13.7.  No Waiver of Subordination Provisions.

No right of any present or future holder of any Senior
Indebtedness 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 Corporation or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Corporation with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof that any
such holder may have or be otherwise charged with.

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

Section 13.8.  Notice to Trustee.

The Corporation shall give prompt written notice to the Trustee of
any fact known to the Corporation that would prohibit the making of any payment
to or by the Trustee in respect of the Securities. Notwithstanding the
provisions of this Article 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 to or by the Trustee in respect of the
Securities, unless and until the Trustee shall have received written notice
thereof from the Corporation or a holder of Senior Indebtedness or from any
trustee, agent or representative therefor; 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 monies
may become payable for any purpose (including, the payment of the principal of
(and premium, if any, on) or interest (including any Additional Interest) on
any Security), then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such monies and to
apply the same to the purpose 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.

 

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Subject to the provisions of Section 6.1, the Trustee shall
be entitled to rely on the delivery to it of a written notice by a Person
representing himself or herself to be a holder of Senior Indebtedness (or a
trustee or attorney-in-fact therefor) to establish that such notice has been
given by a holder of Senior Indebtedness (or a trustee or attorney-in-fact
therefor). 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
Senior Indebtedness to participate in any payment or distribution pursuant to
this Article, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article, 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 13.9.  Reliance on Judicial Order or Certificate of Liquidating Agent.

Upon any payment or distribution of assets of the Corporation
referred to in this Article, the Trustee, subject to the provisions of Section 6.1,
and the Holders of the Securities shall be entitled to rely upon any order or
decree entered by any court of competent jurisdiction in which such Proceeding
is pending, or a certificate of the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee for the benefit of creditors, agent or
other Person making such payment or distribution, delivered to the Trustee or
to the Holders of Securities, for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of the
Senior Indebtedness and other indebtedness of the Corporation, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article.

Section
13.10.  Trustee Not Fiduciary for Holders of Senior Indebtedness.

The Trustee, in its capacity as trustee under this Indenture,
shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be liable to any such holders if it shall in good
faith mistakenly pay over or distribute to Holders of Securities or to the
Corporation or to any other Person cash, property or securities to which any
holders of Senior Indebtedness shall be entitled by virtue of this Article or
otherwise. With respect to the holders of Senior Indebtedness, the Trustee
undertakes to perform or to observe only such of its covenants or obligations
as are specifically set forth in this Article and no implied covenants or
obligations with respect to holders of Senior Indebtedness shall be read into
this Indenture against the Trustee.

Section 13.11.  Rights of Trustee as Holder of Senior Indebtedness; Preservation of
Trustee’s Rights.

The Trustee in its individual capacity shall be entitled to all
the rights set forth in this Article with respect to any Senior Indebtedness
that may at any time be 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. Nothing in this Article shall apply to claims
of, or payments to, the Trustee under or pursuant to Section 6.7.

Section
13.12.  Article Applicable to Paying Agents.

If at any time any Paying Agent other than the Trustee shall have
been appointed by the Corporation and be then acting hereunder, the term
“Trustee” as used in this Article shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article in addition to or in place of the
Trustee.

 

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Section
13.13.  Certain Conversion or Exchanges Deemed Payment.

For the purposes of this Article only, (a) the issuance and
delivery of junior securities upon conversion or exchange of Securities shall
not be deemed to constitute a payment or distribution on account of the
principal of (or premium, if any) or interest (including any Additional
Interest) on Securities or on account of the purchase or other acquisition of
Securities, and (b) the payment, issuance or delivery of cash, property, or
securities (other than junior securities) upon conversion or exchange of a
Security shall be deemed to constitute payment on the account of the principal
of such security.  For the purposes of
this Section, the term “junior securities” means (i) shares of any stock of any
class of the Corporation and (ii) securities of the Corporation which are
subordinated in right of payment to all Senior Debt which may be outstanding at
the time of issuance or delivery of such securities to substantially the same
extent as, or to a greater extent than, the Securities are so subordinated as
provided in this Article.

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67

 

This Indenture 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 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.

ZIONS
BANCORPORATION

	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  Attest:

  	
   

  
	
   

  	
  Assistant Secretary

  
	
   

  	
   

  

 

J. P. MORGAN
TRUST COMPANY NATIONAL ASSOCIATION,

as Trustee

	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

 

	
  Attest:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

68

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